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ASUSTEK Interim / Quarterly Report 2021

Nov 29, 2021

52027_rns_2021-11-29_c2b2ad38-a52c-4fb2-8643-2dfce45097c9.pdf

Interim / Quarterly Report

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1

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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Agenda

3Q 2021 Financial Result

Strategy & Outlook

  • Q & A

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4

3Q 2021 Brand P&L

in NT$Mn
Net Revenue
COGS
Gross Profit
Operating Expenses
Operating Profit
Non-OP Items
Pre-Tax Profit
Tax
Net Profit
EPS
Gross Margin %
Operating Margin %
2021 3Q
130,091
(105,922)
24,169
(13,374)
10,795
4,256
15,051
(3,721)
11,330
15.3
18.6%
8.3%
2021 2Q
120,376
(94,581)
25,795
(12,262)
13,533
1,423
14,956
(3,587)
11,370
15.3
21.4%
11.2%
QoQ
8%
12%
-6%
9%
-20%
199%
1%
4%
0%
2020 3Q
YoY
119,612
9%
(98,455)
8%
21,157
14%
(11,763)
14%
9,395
15%
4,758
-11%
14,152
6%
(3,644)
2%
10,508
8%
14.1
17.7%
7.9%

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5

3Q 2021 Brand Non-OP Items

Non-OP Items
Interest Income (net)
Investment Income
Askey
Others
Exchange Gain/(Loss)
Dividend Income
Other Income(net)
Total Non-OP items
2021 3Q
87
522
(180)
702
733
2,818
96
4,256
2021 2Q
140
(348)
(884)
536
1,625
7
1,423
QoQ
-38%
250%
80%
31%
-55%
1281%
199%
2020 3Q
26
368
(105)
473
1,355
YoY
236%
42%
-71%
48%
-46%
-1%
-41%
2,847
162
4,758
-11%

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6

3Q 2021 Brand Balance Sheet

in NT$Mn
Cash & equivalents
Accounts receivable
Inventories
Current Assets
Long-term investments
Fixed 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
Sep 30, 2021
33,386
86,109
150,577
283,253
102,567
15,156
424,715
74,377
193,205
208,370
7,428
216,345
121
58
70
109
Jun 30, 2021
59,153
80,580
129,447
287,046
101,851
15,764
427,276
77,975
208,624
223,779
7,428
203,497
114
57
76
95
QoQ
-44%
7%
16%
-1%
1%
-4%
-1%
-5%
-7%
-7%
6%
Sep 30, 2020
YoY
71,281
-53%
77,726
11%
85,644
76%
244,572
16%
81,802
25%
17,586
-14%
360,977
18%
70,949
5%
164,028
18%
177,216
18%
7,428
183,762
18%
77
57
65
69

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7

3Q 2021 Product Mix

Phone 2%

3Q 2021

Phone 3%

3Q 2020

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3Q 2021 Region Mix

3Q 2021

3Q 2020

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Americas Americas
21% 24%
EURP EURP
32% 32%
ASIA ASIA
47% 44%
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9

4Q 2021 Business Outlook

  • PC QoQ +5%, YoY +20% ~ 30%

  • Component QoQ flattish, YoY +5%

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11

Key Business Objectives

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Focus on areas of
growth
Expand
addressable
market
Manage
market dynamics
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12

Golden Triangle of the ASUS Brand

Design Thinking

Market NPS Position CRM & Connected Service

Net Promoter Score

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Strong Revenue Growth in Q3 2021

(Revenue YoY)

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Strong and Consistent Revenue Growth

(NT$ Mn)

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ASUS Leadership in Motherboards
>40% share in global market
ASUS remains absolute lead in both Intel and AMD motherboard market
Dominates in Intel Alder Lake-S Z690 Motherboards
Launched with >60% market share
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ASUS AIoT Ecosystem

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Product
Capabilities
Domain AIoT
Expertise Solutions
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ASUS Healthcare Service Architecture

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Patient AI
APPs Model
Patients
xHIS LUMOS
Medical staff Researchers
Deep
Learning
Patient-Centric
Real World Data
AICS Knowledge
Graph
AI Real World
Model Evidence
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18

ASUS Smart Health Solutions

LUMOS The First Real-World Data Platform in Taiwan

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Structuring Medical Records for >20% Top Medical Centers in Taiwan

Few Months Idea to 5 mins Insight

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Researcher: Scientific Exploration Pharma & Bio-tech: Drug Development & Discovery FDA & NHI: Drug Monitoring & Management

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ASUS Smart Health Solutions

Patient-Centered healthcare, give doctor’s time back to patient

CSMU Hospital Vision

35% penetration rate

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Health tech
Pharma Insurance
company
ASUS Healthcare
Community
...

AI-powered Patient Service

Hospitals Clinics Devices
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20

Worldwide Recognition

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Worldwide Recognition

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Leadership on Multiple Fronts

Shipments YoY %

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  • Commercial PCs YoY growth ~100%

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Expansion in Commercial PC Business

Q1-Q3 2021 YoY Growth of ASUS Commercial PC Shipments (excluding Chromebooks)

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(Outside China)

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Evolved Market and Value Creation

  • Focus on areas of growth including Premium Consumer PCs, Gaming PCs, Creator PCs, and High-end Chromebooks

PC Market TAM

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ASUS Premium PCs Revenue Growth

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25 (Source: Market Research and Internal Data)

The Most Complete OLED Laptop Solutions

Thin & Light Laptops Creator Laptops

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Zenbook S
Extreme ProArt Studiobook Pro
Ultra slim
performance
Zenbook S Flip ProArt Studiobook
Zenbook
Slim
Zenbook Pro Duo
Zenbook Flip Advanced
performance
Zenbook Pro
Vivobook
Everyday
Vivobook Slate
Vivobook Pro
Performance
Vivobook Pro X
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26

ASUS Vivobook 13 Slate OLED

WOW THE WORLD Global Launch Event

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ASUS announced Vivobook 13 Slate OLED (T3300), the world’s first 13.3" OLED Windows detachable laptop that packs entertainment and productivity into a versatile fun-filled device, at the event on Nov 3[rd] .

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Hypergrowth in Gaming PC Business

Q1-Q3 2021 YoY Growth of ASUS Gaming PC Shipments

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Leader in Gaming Notebooks

Premium Gaming NB as % of total Gaming NB Shipments

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29 (Source: Market Research and Internal Data)

Accelerated Gaming Product Revenue

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40%
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20%
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= No.1 TECH LEADER

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ROG

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The Most Complete Creator Solutions
No 1. Creator Portfolio
Professional Creator Advanced Creator Laptops
Laptops
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Creator: From Product to Solution & Service

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Media & Creative Art & Architecture, Engineering Product Design &
Entertainment Design & Construction Manufacturing Data Science & AI
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ProArt as a Service
(Solution + CRM)
ProArt as a Solution
(Product + Ecosystem)
ProArt as a Product
(Hardware + Software)
ABSOLUTE PROMISED EXTREME VERSATILE
PRECISION STABILITY PERFORMANCE CONNECTIVITY
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36

ASUS Dial across Creator segments

3[rd] party apps support

Usage Scenarios

ASUS Dial intuitive Software interface

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Dial

on ProArt Studiobook

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Dial Pad

on Vivobook Pro

Adobe Photography

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Edit, organize, store and share photos Create photos, graphics and arts

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Adobe Video post-production

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Video and film editing Create motion graphics and visual effects

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Adobe Illustration

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Create vector arts and illustrations

General

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System settings and windows management

All apps

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Customized key bindings

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Adobe Photoshop : Pen Brush size
adjustment
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Adobe Premiere/After effect : Time line adjustment

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ASUS Creator Solutions Ramp up

YoY Revenue Growth of ASUS Creator Solutions

3X

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38

Q & A

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