2015 Q3 櫃買市場業績發表會 YT Yang Chairman & CEO November 11, 2015 Agenda Milestone & Organization Sales and Product Analysis What Our Development Allied with IoT 2015 Axiomtek Profile 2 2015 Axiomtek Profile 3 Group Business Integration Networking Security ITS Computing Display & Power Automation Digital Signage Energy Gaming Transportation POS/Kiosk HMI Medical Surveillance Vertical Markets Innovations for the Connected World 2015 Axiomtek Profile 4 Global Operation Düsseldorf AXGM AXIT Beijing Shanghai AXSZ Shenzhen AXDG Dongguan Taipei AXTH Los Angeles AXHQ AXCA EWTW Methuen AXMA EWUS ADS Orange County AXMY Subsidiary Franchise Partner Company Axiomtek EtherWAN ADS Total Employee 640 180 8 828 2015 Axiomtek Profile 5 Global Partners United Kingdom Russia Germany France `` Italy United States Japan China Thailand Malaysia Brazil Australia Channel Partners (50) Franchise Partners (3) Subsidiaries + Sales Office (12) 2015 Axiomtek Profile 6 Axiomtek SBU Organization Automation / Energy Design-in Retail / Medical Transportation Gaming Vertical Partners: Distributor, VAR, SI, Reseller, e-Business OEM Partners RISC X86 EMB X86 IMB X86 SoM IPC EPC PPC EBM ESP (Embedded Board & Module) (Embedded System & Panel PC) ODM NA/ Medical/ Retail InPC Intelligent PC DMS (Design & Manufacturing Service) Strategic Business Unit/Product Groups Taipei, Taiwan PCBA & System Integration Dongguan, China Chassis Assembly & Integration California, US Design-in & System Integration Massachusetts, US High-Valued System Integration Facilities 2015 Axiomtek Profile 7 Business vs. Product Category Industrial Heavy-Duty Mission-Critical Market Retail Digital Signage POS/Kiosk Entertainment Factory Automation Automotive Robot Industry Railway, In-Vehicle Aviation, Marine Energy Medical Military Feature Temp: 0-50°C Flexibility Life Cycle: 3-5 years Temp: -10°C-60°C IP40/54/65, NEMA 4/12 Life Cycle: 5-7 years Temp: -40°C-75°C IP66 to 69K, NEMA 4X Certification Life Cycle: 5-10 years Product GOT5000 FDK eBOX NA OPS+DSB IPC eBOX IFW+ICO300 GOT3000 P1000/P6000 MPC rBOX tBOX GOT700 GOT800 Business Commercial Rugged Design Value-added 2015 Axiomtek Profile 8 Agenda Milestone & Organization Sales and Product Analysis What Our Development Allied with IoT 2015 Axiomtek Profile 9 Financial Results 5,000,000 4,368,921 3,690,911 4,000,000 2,802,263 2,761,899 3,000,000 (EPS) 2,000,000 4.75 3.47 1,000,000 2.31 1.86 0 2011 Year Revenue (NTD K) 2012 2011 H1 2013 2012 H2 H1 2014 2015 2013 H2 H1 2014 H2 H1 2015 H2 H1 H2 1,440,429 1,321,470 1,342,883 1,459,380 1,666,028 2,024,883 2,226,335 2,142,586 2,172,132 2,761,899 2,802,263 3,690,911 2015 Axiomtek Profile 4,368,921 10 Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income (in TWD K) 2015Q4 2015Q3 Guidance 2015Q3 2015Q3 over over 2015Q2 2014Q3 2015Q2 2014Q3 1,027,970 1,076,888 19.72% 14.28% 37.72% 33.99% -1.29ppts +2.44ppts Revenue 1,230,720 Gross margin 36.43% Operating expense -301,804 -273,007 -246,009 10.55% 22.68% Operating income 146,494 114,752 120,014 27.66% 22.06% Net non-operating income(loss) 55,084 -5,135 16,541 1172.72% 233.01% Income before income tax 201,578 109,617 136,555 83.89% 47.62% Net Income 155,246 79,210 103,566 95.99% 49.90% Net income Margin% 12.61% 7.71% 9.62% +4.90ppts +2.99ppts of the parent company 149,644 76,591 99,429 95.38% 50.50% Net income to NCI 5,603 2,619 4,137 113.94% 35.44% EPS 1.89 0.98 1.18 92.86% 60.17% 36-37% Net income to shareholders 2015 Axiomtek Profile 11 Product Revenue Breakdown by OBM/DMS(ODM) DMS 33.0% OBM 67.0% by Product Industrial Network, 21.0% Panel PC and Display, 10.0% Geography Asia, 11.0% Emerging, 3.5% Embedded Boards and SoMs, 20.0% Greater China, 13.0% America, 50.0% Embedded Systems, 49.0% Europe, 22.5% 2015 Axiomtek Profile 12 Agenda Milestone & Organization Sales and Product Analysis What Our Development Allied with IoT 2015 Axiomtek Profile 13 IoT and Industry 4.0 Internet of Things Lead industry in transforming businesses and the way we live by making it simple to create exciting, new IoT solutions Devices that connect to the Internet integrating greater compute capabilities using data analytics to extract information 2015 Axiomtek Profile 15 Talk About No. of Connectivity 16 Intelligent & End to End Security Solution VISUALIZE DATA AND MONETIZE INSIGHT TURN DATA INTO INSIGHT CONNECT THINGS AND DEVICES INTELLIGENCE AT THE EDGE How to Get Started for IoT Define What You’d Like to Learn From Sensors Build an IoT Network and Security Foundation Convert Devices and Controllers To Be As IPbased Equipment Establish Vertical Ecosystems With Allied Partners Collect data As Much As Possible, Convert Them To The Value Information 2015 Axiomtek Profile 18 Challenges That Could Slow IoT Grow Security & Privacy Diversified Vertical Markets and Industries IT/OT & Control/Data Integration Legacy Infrastructure Standards & Regulation 2015 Axiomtek Profile 19 Industrial Automation Coverage Industrial Controller Drives Machinery Industrial Connectivity Connectivity Automation Movement Software Controller (CNC, GMC) Feedback Systems 2015 Axiomtek Profile 20 Industrial Controller Coverage IPC DCS PLC/PAC Industrial Controller HMI RTU Embedded IoT Controller 2015 Axiomtek Profile 21 Connected World thru IoT Smart Cities Connected Communities Smart Planet Smart Energy Green Environment Electric Grid Future Internet Smart Buildings Smart Transport Buildings, Smart Homes Internet of Things Smart Living Smart Industry Industrial Environments ITS, HEVs, EVs Entertaining, Leisure Smart Health Healthcare System 2015 Axiomtek Profile 22 What We are Working for IoT Platforms Industrial Automation Transportation EtherCAT Solution for Motion Control PoE Solution for Security and Vision Inspection Integrated More IO for Remote Monitoring and Diagnosis Segmented More Domains with Specific Feature Wireless Gateway and Router PoE Solution for IP Surveillance EN50155, e-Mark, IEC60945, etc. 2015 Axiomtek Profile Energy & Utility Outdoor and Heavyduty Features Wireless Gateway and Router Isolated IO and Serial Ports IEC61850, 1588, ATEX (EU), C1D2 (US), etc. 23 What We Are Working on Embedded Board Design-in for IoT X86 Sector RISC Sector Aggressive on earlier access for EMB Focus on M2M gateway platforms Complete SOM platforms, ZIO and MiniPCIe modules Standardized module with open source platforms to support makers business Leverage China partners to cost down IMB series Promote ATP to increase design-in opportunities Developing DAQ for RTU series Leverage EBM ATP (Axiomtek Technical Portal) AXView 2.0 Remote Management Solutions (Firewall & Gateway) 2015 Axiomtek Profile 24 Product & Market Axiomtek IoT Architecture 2015 Axiomtek Profile 25 Axiomtek IoT & M2M Solution Devices & Process Gateway & Firewall Industrial Networking Software Transportation Solution: Railway, IVI, Marine Industrial Gateway Industrial Ethernet Switch Intelligent Management Solution (AXView) Smart Energy Solution Industrial Firewall Ethernet Extender SCADA EtherCAT Master Controller WWAN, WLAN Media Converter WLAN, WPAN 2015 Axiomtek Profile 26 Thank You 2015 Axiomtek Profile 27