Advantech — Annual Report 2018

Mar 13, 2019

Y18 營運成果報告

Eric Chen, CFO & President of General Management, Advantech Mar, 2019

Safe Harbor Notice

==> picture [720 x 10] intentionally omitted <==

 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.

2

Y18 營運結果摘要 – I/S

合併營收

==> picture [608 x 259] intentionally omitted <==

• 台灣Corporate Income Tax 由17%->20%,合併稅率則上升至21%

3

Y18 Sales By Region

Local Sales: US$1,618M, +11.2%

==> picture [652 x 341] intentionally omitted <==

----- Start of picture text -----

USD$M Y2017 Y2018 GR% %
North America 393 445 13% 28%
Europe 256 306 20% 19%
Greater China 463 508 10% 31%
Asia & Intercon 206 232 13% 14%
DMS/E2E 70 58 -16% 4%
Affiliates 68 69 1% 4%
Total 1,455 1,618 11% 100%
North America Asia & Intercon
Affiliates
ANA: 415.4M GR%: +15.7% Japan: 43.7M GR%: +9.2%
DMS/E2E 4% 4% iConnectivity Americas 29.4M GR%: -13.9% Korea: 65.0M GR%: +7.8%
North Europe AAU/NZ: 11.6M GR%: -5.3%
Asia &
ASEAN: 30.4M GR%: +5.3%
America AEU: 259.6M GR%: +17.6%
Intercon
28% ADLoG: 46.0M GR%: +31.8% India 15.3M GR%: +56.6%
14%
Russia 15.2M GR%: -12.4%
Greater China
ME&A 33.5M GR%: +60.5%
China: 400.4M GR%: +10.9% LATAM 16.4M GR%: +12.4%
Taiwan: 108.0M GR%: +5.7% Affiliates
Advanixs: 15.3M GR%: -0.8%
DMS/E2E
ALNC: 20.4M GR%: +11.9%
Greater
China DMS(NC): 44.7M GR%: -22.0% A-Cermate: 12.4M GR%: +15.6%
31% Europe DMS(AC): 10.3M GR%: +14.2% A-Kostec: 2.8M GR%: -41.5%
19%
----- End of picture text -----

4

Y18 Sales by SBG

Local Sales: US 1,618M, +11.2%

==> picture [630 x 322] intentionally omitted <==

----- Start of picture text -----

US 708.3M, 44%, +7.6% Embedded-IoT + Allied DMS (Design-in)
Networks & Communications Embedded Core & IoT Modules Applied Computing
• Telecom & Mission Critical Systems • Computing on Modules • WISE-PaaS & Cloud Software • Industrial Mobile Computing
• Enterprise Network Platforms • Single Board Computers US 439.6M • ARM/ RISC Computing • Applied Computing DMS
•• Network & Embedded Switches Video Broadcasting Solutions US 164.7M •• Industrial Motherboards Embedded Box Computers 27%, +12.3% •• Modular Board Design Services Gaming Solutions US 104.0M • Service-IoT DMS
• Industrial Displays
10%, -1.5% • Industrial Flash Storage (SQFlash) 7%, +4.7%
• Embedded Wireless Modules (M2.COM)
APS & AGS
US 209.8M
Industrial-IoT 13%,+16.3% Service-IoT
+11% Industrial Automation Intelligent Systems +16% Intelligent Healthcare
• Industrial I/O & Controllers • Industrial Computers • Medical Computing & Tablets
• Automation Computing & HMI • Industrial Servers & Storage • Intelligent Hospital Solutions
• Motion Controls & Machine Vision • Intelligent Video Solutions Intelligent Retail
• Remote IoT Devices (WISE) US 554.2M • Transportation Solutions • iRetail Platforms US 145.6M
• WebAccess+ Software 34%, +13.3% •• Intelligent Retail & Hospitality Solutions 9%, +14.4%
• iFactory (Industry 4.0) Solutions iConnectivity Digital Signage Solutions
• Machine Automation Solutions • Network Edge Solutions Intelligent Logistics
• Energy & Environment Solutions • Industrial Switches +11% • In-Vehicle Computing
• Industrial Wireless Devices • Digital Logistics & Fleet Management Solutions
• Industrial Cellular Routers
----- End of picture text -----

% of Sales, YoY Growth

5

Y18 Performance By SBG

Y2018 US$ mn	Y2018 US$ mn	Revenues YoY	Gross Margin **Range **	Operating Profit OP Margin
Industrial IOT		554 13%	45~50%	122 21.9%
Embedded IOT		440 12%	33~38%	72 16.3%
Allied DMS	ACG	104 5%	30~35%	15 14.1%
	NCG	165 -1%	35~40%	26 15.8%
Service IOT		146 14%	35~40%	9 6.0%
AGS & APS		210 16%	20~25%	24 11.3%
Other unallocated expenses				-20
Total		1618 11%		248 15.3%

• IIoT 成長13%, 毛利率區間於 45~50%, EIoT 成長 12%, 於中低毛利產品有高成長表現

• NCG/ACG 受 DMS 客戶降價影響, 毛利率表現壓力大, SioT 因進行製造移轉, 毛利率表現則相對穩定

• AGS/APS 主要產品為外購件含 CPU, Memory, Flash 等產品, 主要是搭配自有系統產品出貨, 另 AGS-CTOS 組裝 服務則有超過 50% 的毛利率表現

6

Y18 營運資金狀況

Cash Position Accounts Receivable DSO(Days) Inventory DOH(Days) Accounts Payable Days NT$M	2016 全年 7,237 7,364 60 5,597 77 4,983 60	2017 全年 8,300 7,866 63 6,242 80 5,281 69		2018	2018
			第1季末	第2季末	第3季末 第4季末
			8,386	10,275	6,993 8,676
			7,797 61	8,358 62	8,346 8,351 61 61
			6,818 87	7,174 82	7,600 7,558 84 84
			5,376 69	6,251 71	6,248 5,811 70 67

• 存貨週轉天數較去年同期略升, 主要是部份通用性原物料缺貨, 採暫時性 積極備料所致

7