Advantech — Interim / Quarterly Report 2019

Sep 16, 2019

Y19 1H Financial Results

Jill Su, Senior Manager, Advantech Eric Chen, CFO & President of General Management, Advantech Aug, 2019

Safe Harbor Notice

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 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.

Y19 1H Financial Results

NT$M			H1			H1 Consolidate	H1 Consolidate
		2018			2019
	Q1	Q2		Q1	Q2	H1
Revenue Growth	11,355 13% 4,338 38.2% 2,696 6% 1,642 9% 99 21.5% 1,368 1.95	12,645 11%	24,000 12% 9,130 38.0% 5,547 7% 3,583 10% 186 21.4% 2,963 4.23	12,301 8% 4,724 38.4% 2,866 6% 1,858 13% 196 21.0% 1,623 2.31	13,976	26,278
					11%	9%
Gross Profit Gross Margin OPEX Growth MP Growth Non-OperatingProfit Effective Tax Rate Profit after Tax EPS(NT$)		4,792 37.9% 2,851 8% 1,941 11% 87 21.4% 1,595 2.28			5,411	10,135
					38.7%	38.6%
					3,078	5,944
					8%	7%
					2,333	4,191
					21%	17%
					89	285
					21.1%	21.1%
					1,910	3,532
					2.71	5.02

Local Sales: US 847.4M, +4.7%

1H19 Performance by Region

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US$M Y18 1H Y19 1H GR% Rev. Portion
North America 217.4 249.2 +14.6% 29%
Europe 152.2 154.8 +1.7% 18%
China 206.9 187.4 -9.4% 22%
North Asia 51.8 88.3 +70.5% 11%
Taiwan 58.2 51.4 -11.7% 6%
Asia & InterCon 57.3 70.8 +23.6% 9%
Others 65.6 45.5 -30.6% 5%
Total 809.3 847.4 +4.7% 100%
Others North Asia Asia & InterCon
Asia
5%
& Intercon AJP: 20.7M GR%: +6.8%
AAU/NZ: 6.8M GR%: +17.7%
9% North
Taiwan ATJ: 37.4M GR%:
America ASEAN: 17.4M GR%: +15.4%
6%
29% AKR : 30.2M GR%: -6.8%
India 8.0M GR%: +22.9%
North Asia Russia 7.9M GR%: +13.5%
11%
LATAM 7.1M GR%: -5.0%
ME&A 22.4M GR%: +44.5%
Europe ROW 1.3M GR%: +819.8%
China
18%
22%
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Y19 1H Performance By SBG

Y19 1H US$ mn	Y19 1H US$ mn	Revenues YoY	Gross Margin **Range **	Operating Profit OP Margin
Industrial IOT		272 -5%	45~50%	62 22.7%
Embedded IOT		218 7%	33~38%	36 16.5%
Allied DMS	ACG	102 54%	25~30%	17 16.9%
	NCG	86 16%	35~40%	14 16.0%
Service IOT		72 -1%	38~43%	6 8.7%
PSU & AGS		98 -8%	25~30%	14 14.4%
Other unallocated expenses				-13
Total		847 5%		136 16.0%

Y19 1H Working Capital

consolidate

Cash Position Account Receivable DSO(Days) Inventory DOH(Days) Account Payable Days NT$ Mn	2017 Full 8,300 7,866 63 6,242 80 5,281 69	2018 Full 8,676 8,351 61 7,558 84 5,811 67	2019	2019
			1Q 9,586 8,683 63 8,179 95 5,756 70	2Q
				11,346
				9,209 62
				8,446 91
				6,519 70

Go Together, We Go Far and Grow Big