Y2014 1H Financial Results By Eric Chen July, 2014 Y2014 1H Financial Results Consolidate NT$M Net Sales Goss Margin% Operating Expense Operating Margin% Non-Operating Income Effective Tax Rate Net Margin AT EPS - (NT$) Y2013 Y2014 1H 2H 14,438 16,222 1Q 2Q 8,147 9,278 QoQ 1H 17,425 YoY 14% 21% -1.2% -0.6% 10% 14% 41.3% 40.8% 41.5% 40.3% 40.7% 3,701 4,217 2,014 2,206 4,219 15.7% 14.8% 16.8% 16.3% 16.5% -0.5% 0.8% 229 271 69 -23 46 -133% -80% 19.9% 20.3% 19.4% 18.8% 19.1% -0.6% -0.8% 1,993 2,134 1,156 1,209 2,365 5% 19% 3.50 3.76 2.02 2.10 4.12 4% 18% Y2014 1H Sales By Region/Sales Force Local Sales: US 572M, +19% USD$ M Y2013 1H North America % 159 +6% 28% 70 90 +28% 16% Greater China 141 165 +17% 29% Asia/Intercon. 69 76 +10% 13% E2E Sales 32 46 +44% 8% 18 481 36 572 +100% 19% 6% 100% Affiliates & Others Total Affiliates 6% Europe North America 28% AEU: Asia/Intercon 68.1M GR%: +32% ADLoG: 16.4M GR%: AGPEG Asia Intercon. 13% +9% 5.1M GR%: +46% Greater China China: Greater China 29% GR% 150 Europe DMS/E2E 8% Y2014 1H 126.6M GR%: +21% Taiwan: 34.9M GR%: +4% Europe 16% AiS: 3.3M GR% +26% Japan: Korea: AAU/NZ: SAP: Intercon: LATAM 10.8M 21.6M 5.3M 10.1M 18.9M 8.8M GR%: GR%: GR%: GR%: GR%: GR%: +32% +2% -12% +14% +20% -2% Affiliates & Others Advansus: Netstar: CAPS Others 15.2M GR%: +13% 4.7M GR%: +9% 4.5M 11.6M GR%: +8% Y2014 1H Sales By Strategic Biz Group Local Sales: US 572M, GR:+19% Intelligent System Intelligent Services US 160.1M 28%,+13% US 106.2M 19%,+15% Advantech Global Services Embedded US 160.8M 28%,+24% % of Sales, YoY Growth US 61.4M 11%,+6% iAutomation US 83.3M 14%, +7% Y2014 1H Working Capital Consolidate NT$ M 2012 Full 2013 1Q End 2014 2Q End 1Q End 2Q End Cash Position 5,022 5,914 6,574 5,649 6,419 Accounts Receivable 4,281 4,555 5,074 5,959 6,257 55 60 60 65 63 3,890 4,156 3,783 4,511 4,588 83 94 82 85 76 2,327 2,836 2,653 3,106 2,622 49 63 49 59 42 DSO (Days) Inventory DOH (Days) Accounts Payable Days