ASUSTEK — Interim / Quarterly Report 2015

Sep 8, 2015

ASUSTeK 2Q 2015 Investor Conference

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Disclaimer

ASUSTeK’s presentation contains forward-looking statements subject to significant risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. The forward-looking statements in this release reflect the current belief of ASUS as of the date of this release, we undertake no obligation to update these forward-looking statements for new information, future events, or otherwise.

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2 Confidential

Agenda

• 2Q 2015 Financial Result

• Business Highlights

• Strategy & Outlook

• Q & A

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3 Confidential

4

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2Q 2015 Financial Result
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2Q 2015 Brand I/S (QoQ)

(unaudited brand consolidated financials)

in NT$Mn Net Revenue COGS Gross Profit Operating Expenses Operating Income Non-OP Items Pre-Tax Income Tax Net Income	2Q 2015 99,366 (85,124) 14,242 (9,522) 4,721 1,372 6,093 (1,435) 4,658 *	% 100.0% (85.7%) 14.3% (9.6%) 4.8% 1.4% 6.1% (1.4%) 4.7%	1Q 2015 102,181 (88,713) 13,467 (8,746) 4,721 39 4,760 (1,079) 3,680	% 100.0% (86.8%) 13.2% (8.6%) 4.6% 0.0% 4.7% (1.1%) 3.6%	QoQ
					-3% -4% 6%
					9% 0%
					3447% 28%
					33% 27%

• 2Q EPS = $6.27

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5 Confidential

2Q 2015 Brand I/S (YoY)

(unaudited brand consolidated financials)

in NT$Mn Net Revenue COGS Gross Profit Operating Expenses Operating Income Non-OP Items Pre-Tax Income Tax Net Income	2Q 2015 99,366 (85,124) 14,242 (9,522) 4,721 1,372 6,093 (1,435) 4,658	% 100.0% (85.7%) 14.3% (9.6%) 4.8% 1.4% 6.1% (1.4%) 4.7%	2Q 2014 95,459 (81,806) 13,653 (9,237) 4,416 1,843 6,259 (1,470) 4,789	% 100.0% (85.7%) 14.3% (9.7%) 4.6% 1.9% 6.6% (1.5%) 5.0%	YoY
					4% 4% 4%
					3% 7%
					-26% -3%
					-2% -3%

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6 Confidential

2Q 2015 Non-OP Items

(unaudited brand consolidated financials)

Non-OP Items Interest Income (net) Investment Income Askey Others Exchange Gain / (Loss) Dividend Income Other Income(net) Total Non-OP items	2Q 2015 94 101 104 (3) 431 549 198 1,372	1Q 2015 33 307 195 112 (349) 48 39	QoQ 185% -67% -47% -103% 223% 311% 3447%	2Q 2014 157 338 152 186 999 8 340 1,843	YoY
					-40% -70% -32% -102% -57% 6756% -42%
					-26%

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7 Confidential

2Q 2015 Brand B/S

Cfidtil CCC calculation based on average 8 in NT$Mn Cash & cash equivalents Accounts receivable Inventories Current Assets Long-term investments Fixed assets Other assets Total Assets Accounts payable Current Liabilities Total Liabilities Paid-in capital Stockholders' equity Avg. Days of Inventory Avg. Days of AR Avg. Days of AP Avg. CCC Days	of Inventory/AR/AP balances and quarterly unaudited Jun 30, 2015 Mar 31, 2015 72,404 67,176 66,692 61,716 91,758 86,765 239,186 223,688 80,122 82,461 3,577 3,621 9,409 9,465 332,294 319,235 69,657 53,753 161,592 136,682 168,531 145,877 7,428 7,428 163,763 173,359 96 93 59 59 71 72 83 81	brand financials QoQ 8% 8% 6% 7% 4% 30% 18% 16% -6%	Jun 30, 2014 67,920 55,046 87,207 219,757 66,202 4,301 8,095 298,356 59,323 148,728 156,550 7,428 141,806 88 55 66 77	YoY 7% 21% 5% 9% 11% 17% 9% 8% 15%

Confidential 8 *CCC calculation based on average of Inventory/AR/AP balances and quarterly unaudited brand financials

9

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Business Highlights
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Product Mix

2Q 2015

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IOT
3%
Component
14%
Mobile PC
22% 61%
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1Q 2015

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IOT
3%
Component
14%
Mobile PC
16% 67%
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10 Confidential

Region Mix

2Q 2015 1Q 2015

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Americas EURP Americas EURP
21% 30% 20% 28%
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ASIA ASIA
49% 52%
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11 Confidential

3Q 2015 Shipment Outlook

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1Q 2Q 3Q targets 3Q QoQ
PC 5.4m 4.8m 5.4m +13%
- NB 4.8m 4.3m 4.8m +12%
Mobile 4.5m 6.0m 7.8m +30%
- Phone 3.0m 5.0m 6.0m +20%
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*PC=NB+DT, Mobile=Phone+Pad

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12 Confidential

13

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Strategy & Outlook
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創新迎戰變中求勝 In Search Of Incredible

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New Ubiquitous Cloud Computing Era

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Cloud
(Big Data)
Generating Accessing
Interacting Screening
PC IOT
Flowing Sharing
Mobile Robotics
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ASUS Business Perspective Mobile > PC in 2018

Mobile PC 2014 2015 2016 2017 2018 ASUS Revenue (e)

ASUS PC Commercial Gaming (ROG) DT / NB / Tablet / Chromebook NB / DT / MB / VGA / Monitor 2-in-1 / Chi Mainstream T300Chi / T100 N / X / M (DT)

Zen AiO / ZenBook ZenBook 303 / 305 / 501

EeeBook / Chromebook

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The unbeatable gaming laptop with TurboMaster overclocking

The world’s most powerful compact desktop 4th gen Intel[®] Core[™] processors and NVIDIA[®] GeForce[®] graphics for unstoppable WQHD gaming

6th gen Intel[®] Core[™ ] i7-6700K processors NVIDIA[®] GeForce[®] GTX 960

The world's first WQHD G-SYNC monitor with rapid 144Hz refresh rate and 1ms response time

WQHD IPS & 144Hz Gaming Monitor AMD FreeSync[™] technology for seamless visuals and smooth gameplay

The world’s thinnest (12.3mm) 13-inch QHD[+] laptop

Timelessly-elegant design 4K2K display

Quad-Core Intel[®] Core i7 CPU

NVIDIA[®] GeForce[®] GTX[™] 960M

PCIe[®] Gen 3 X 4 SSD / 16GB RAM 96Wh battery for 6[+] hours of computing satisfaction Next-generation dual-band 802.11ac Wi-Fi

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Crafted beauty
Ultra-slim 2-in-1
Brilliant design & colors
14 hours battery life
USB 3.1 Type-C port
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Timelessly-elegant design

4K2K display (24”)

Quad-Core Intel[®] Core i7 CPU NVIDIA[®] GeForce[®] GTX[™] 960M PCIe[®] Gen 3 X 4 SSD / 16GB RAM USB 3.1 Gen 2 Type-C port 3D camera

PC Highlights

• Gaming 2015 YoY > 40%

• ZenBook 2015 YoY > 200%

• (EeeBook + T100) 2015 YoY > 10%

• NB attacking plan

• T100 hero product

• Zen AiO 22”/24”

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PC (DT+NB) Highlights

Q2/’15 :

• China : ASUS Q2 YoY 20%, TAM YoY -2%

• • USA : ASUS Q2 YoY 10%, TAM YoY 0% ( w/o T100 )

• • Japan : ASUS Q2 YoY 13%, TAM YoY -37% ( w/o T100 )

2H/’15 (e) :

• APAC : ASUS Q3 YoY 10%, TAM declines

• • China : ASUS Q3 YoY 5%, TAM declines

• • USA : ASUS Q3 YoY 5%, TAM flattish

ASUS Mobile

PadFone ZenPad ZenFone Innovative Leader Empowering Luxury Empowering Luxury for Everyone for Everyone

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Latest 64-bit Intel Z3580 2.3G 4GB RAM USB Type-C VisualMaster (Tru2Life[+] ) 2K IPS Display

5.1- Channel Surround Sound 6 Speakers (Including 1 Subwoofer) 6X Volume 64-bit Intel x3-C3200 VisualMaster (Tru2Life) The Ultimate in Customization

64-bit Intel x3-C3200 VisualMaster (Tru2Life) The Ultimate in Customization

World 1[st] tablet with HDTV ratings image processing chip Intelligent contrast − 200% wider contrast level Sharpness optimization

ZenFone1 Achievement

• Empowering Luxury for Everyone

• Total Life Cycle Qty >10M

• Sell-Through > 95%

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The New ZenFone

See the Crystal Miracle

Generative Design Latest 64-bit Intel Atom Z3580 PowerVR 6430 Graphics Geared with Powerful 4GB RAM 13MP / 5MP with PixelMaster 2.0 60% Fast Charged in 39 Mins Full HD IPS Display ZenUI 2.0

See the Perfect You iF Design Award Dual 13MP with PixelMaster 2.0 Dual Flash (Dual-LED Real Tone) 0.3s Laser Auto-Focus Qualcomm Octa-core CPU Full HD IPS Display Corning[®] Gorilla[®] Glass 4 5 Magnet Speaker with SonicMaster 2.0 ZenUI 2.0

See with the Fastest Focus

iF Design Award 0.3s Laser Auto-Focus 13MP / 5MP with PixelMaster 2.0

5 Magnet Speaker with SonicMaster 2.0 5” / 5.5” / 6”

ZenUI 2.0

A creation of powerful ISP & GPU image processing

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5 New modes! A total of 16 different camera modes for day and night

4X brightness, details & color contrast

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Increase 4X light sensitivity

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Reveal extra-ordinary details & clarity 4X Resolution, 52MP

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After

Before

Real-time image enhancement

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‧ ‧ Freedom Connection Expression

Creative Studio

Personalize

Modes

MiniMovie PhotoCollage & PhotoEffects

ZenCircle Beta

Font

Themes

Launcher

Easy Mode SnapView Kids Mode

ZenMotion

Safety & Security

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Private Trend Micro Private Contacts Security Messaging

ZenUI Apps Instant Update Instant Update via Google Play Store

• ZenUI Apps over 250,000,000 downloads

• Total 33 Apps in Google Play

• Average 4.5 rating

• ASUS Launcher got 4.8 amazing high rating

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ZenUI Monetization

Approaches

• Apps Preload

• Apps Recommendation

• Game Center

• Contents (i.e. Themes, Templates & Stickers, etc. )

• Online Shopping Referral

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Apps Preload

Recommendation

Game Center

Theme Content Shopping Referral

ZenFone Business Breakthrough

Product Marketing Channel Service Fans Supply Chain ZenUI & Apps

Empowering luxury for everyone Word of mouth marketing Distribution cost & efficiency ZenCare ZenTalk Daily inventory control Instant update & Monetization

ZenFone Accessory

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ZenFone

in 2015

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The world’s most admired leading enterprise in the new digital era.

ASUSTeK 2Q 2015 Investor Conference

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