Advantech — Annual Report 2015

Mar 7, 2016

Y2015 Financial Results

2016/02/25 By Eric Chen eric.chen@advantech.com.tw

Safe Harbor Notice

• This presentation contains forward-looking statements and is subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements.
• The projections should not be interpreted as legally binding commitments, but rather as flexible information subject to change occasionally.

Y2015 Financial Results

Consolidate

					2015
NT\$M	Y2012	Y2013	Y2014	1Q	2Q	3Q	*4Q	*YTD	YOY
Sales	27,552	30,660	35,732	8,785	10,027	9,437	9,752	38,001
YOY growth	4%	11%	17%	8%	8%	3%	6%	6%	6%
Gross Margin %	39.2%	41.0%	40.3%	40.9%	39.7%	39.7%	41.3%	40.4%	0.1%
Gross Margin	10,924	12,586	14,393	3,591	3,980	3,746	4,028	15,345	7%
Operating Expense	7,065	7,917	8,884	2,240	2,348	2,422	2,406	9,416
YOY growth	9%	12%	12%	11%	6%	6%	1%	6%	6%
Operating Margin	3,858	4,668	5,509	1,351	1,632	1,324	1,622	5,929
Operating Margin %	14.0%	15.2%	15.4%	15.4%	16.3%	14.0%	16.6%	15.6%	8%
Non-Operating Income	373	500	547	129	-8	195	45	361	-34%
Effective Tax Rate	17.6%	20.1%	18.5%	18.5%	18.0%	18.6%	18.9%	18.5%	0.0%
NPAT	3,486	4,127	4,932	1,206	1,333	1,236	1,352	5,127	4%
EPS(NT\$)	5.67	6.59	7.80	1.91	2.10	1.95	2.12	8.08	4%

*Un-Audited

Y2015 Sales By Region

Local Sales: US 1,201M, +2%

USD\$ M	2014	2015	GR%	%
North America	339	352	+4%	29%
Europe	179	185	+3%	15%
Greater China	343	371	+8%	31%
Asia/Intercon	159	158	-1%	13%
DMS/E2E	92	77	-17%	6%
Affiliates	69	60	-13%	5%
Total	1,180	1,201	+2%	100%

Affiliates			Europe				Asia/Intercon
DMS/E2E	5%	North	AEU:	150.8M GR%: +4%			Japan:	27.5M	GR%:	+21%
6%		America					Korea:	41.4M	GR%:	-1%
		29%	ADLoG:	33.8M	GR%:	-1%	AAU/NZ:	10.6M	GR%:	-2%
Asia Intercon.							SAP:	22.4M	GR%:	+3%
							Intercon:	42.8M	GR%:	+2%
13%							LATAM	13.0M	GR%:	-35%
		Greater China					Affiliates/M&A
Greater			China:	292.7M	GR%:	+11%	Advansus:	22.7M	GR%:	-13%
China		Europe	Taiwan: 71.6M		GR%:	-5%	ALNC	12.6M	GR%:	-7%
31%		15%	AiS:	6.6M	GR%	+48%	APOS	5.6M	GR%:	-40%

Advantech Business Group Structure

Local Sales: US 1,201M, +2%

Networks & Communications •Blade Computing & Systems •Network Appliances •Network Virtualization Platforms •Network & Embedded Switch •Broadcasting & Surveillance Platforms

Embedded Design-In

Embedded Core Computing •Embedded Box Computer •Modular Computing Boards •Wireless IoT Modules -6% +4% US 607.4M 50%, +0%

•Display Systems & Gaming Solutions •Industrial Motherboard & DTOS •Embedded Peripherals

Industrial DMS •Applied Computing DMS •Embedded DMS •Network Appliance DMS +0%

•Component Purchasing Service

% of Sales, YoY Growth

Industrial-IoT

Industrial Automation •Industrial I/O & Controllers •Industrial HMI •Automation Computing •IoT Devices & Solutions •WebAccess+ Solutions •iFactory (Industry 4.0) Solutions •Machine Automation Solutions •Power & Energy Solutions US 358.4M 30%, +2%

Intelligent Systems •Industrial Computers +0% +5%

•Industrial Servers & Storage •Intelligent Video Solutions •Intelligent IoT Modules

•Transportation Solutions

•iNetworking (B+B) •Industrial Communications •Industrial Switch iConnectivity -2%

Smart City Solutions

Service Automation Platforms +5%

•Industrial Mobile Computing •iRetail Platforms •Medical Computing & Tablets •In-Vehicle Computing US 91.8M 8%, +5%

Intelligent Service Solutions

•Intelligent Hospital •Digital Logistics & Fleet Management •Intelligent Retail & Hospitality

Y2015 Working Capital

					Consolidate
2013	2014	2015
Full	Full	1 Q	2 Q	3 Q	*4 Q
4,924	5,648	6,778	7,564	5,348	5,633
5,359	5,916	5,521	6,436	6,383	6,266
5 9	5 8	5 5	6 2	5 9	5 9
4,031	4,782	4,880	4,680	5,175	4,869
7 6	7 8	8 7	7 1	8 2	7 6
3,004	3,166	3,107	3,536	3,436	3,066
5 5	5 2	5 6	5 3	5 4	5 1

*Un-Audited