ASUSTeK4Q 2013 Investor Conference

Confidential

DisclaimerASUSTeK’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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• 4Q 2013 Financial Result• Business Highlights• Strategy & Outlook • Q & A

Agenda

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4Q 2013 Financial Result

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in NT$ Mn 4Q 2013 % 3Q 2013 % QoQ

Net Revenue 119,480 100.0% 107,079 100.0% 12%

COGS (104,445) (87.4%) (93,814) (87.6%) 11%

Gross Profit 15,035 12.6% 13,265 12.4% 13%

Operating Expenses (9,709) (8.1%) (8,419) (7.9%) 15%

Operating Income 5,326 4.5% 4,846 4.5% 10%

Non-OP Items 1,962 1.6% 1,620 1.5% 21%

Pre-Tax Income 7,289 6.1% 6,466 6.0% 13%

Tax (1,597) (1.3%) (1,526) (1.4%) 5%

Net Income 5,691 4.8% 4,940 4.6% 15%

4Q 2013 Brand I/S (QoQ)(unaudited brand consolidated financials)

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* EPS $ 7.7 based on 742.8m shares

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4Q 2013 Brand I/S (YoY)(unaudited brand consolidated financials)

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in NT$ Mn 4Q 2013 % 4Q 2012 % YoY

Net Revenue 119,480 100.0% 116,601 100.0% 2%

COGS (104,445) (87.4%) (100,808) (86.5%) 4%

Gross Profit 15,035 12.6% 15,793 13.5% -5%

Operating Expenses (9,709) (8.1%) (9,738) (8.4%) 0%

Operating Income 5,326 4.5% 6,055 5.2% -12%

Non-OP Items 1,962 1.6% 1,269 1.1% 55%

Pre-Tax Income 7,289 6.1% 7,324 6.3% 0%

Tax (1,597) (1.3%) (1,438) (1.2%) 11%

Net Income 5,691 4.8% 5,886 5.0% -3%

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2013 Brand I/S (YoY)(unaudited brand consolidated financials)

* EPS $ 28.9 based on 742.8m shares

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in NT$ Mn 2013 % 2012 % YoY

Net Revenue 421,380 100.0% 413,146 100.0% 2%

COGS (367,075) (87.1%) (356,853) (86.4%) 3%

Gross Profit 54,304 12.9% 56,294 13.6% -4%

Operating Expenses (34,629) (8.2%) (34,283) (8.3%) 1%

Operating Income 19,676 4.7% 22,011 5.3% -11%

Non-OP Items 7,101 1.7% 4,915 1.2% 44%

Pre-Tax Income 26,777 6.4% 26,926 6.5% -1%

Tax (5,327) (1.3%) (4,504) (1.1%) 18%

Net Income 21,450 5.1% 22,422 5.4% -4%

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4Q 2013 Non-OP Items(unaudited brand consolidated financials)

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Non-OP Items 4Q 2013 3Q 2013 QoQ 4Q 2012 YoY

Interest Income (net) (97) 125 -178% 89 -209%

Investment Income 97 278 -65% 556 -83%

Pegatron - - - 645 -

Askey 194 236 -18% (138) 240%

Others (97) 42 -331% 50 -294%

Exchange Gain / (Loss) 752 523 44% 534 41%

Dividend Income 664 414 60% -

Other Income (net) 546 280 95% 90 507%

Total Non-OP items 1,962 1,620 21% 1,269 55%

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4Q 2013 Brand B/S

*CCC calculation based on net ending inventory balance and quarterly unaudited consolidated brand financials9

in NT$ Mn Dec 31, 2013 Sep 30, 2013 QoQ Dec 31, 2012 YoY

Cash & cash equivalents 62,169 40,833 52% 48,726 28%

Accounts receivable 66,565 61,635 8% 59,892 11%

Inventories 71,681 76,240 -6% 75,154 -5%

Current Assets 209,702 186,422 12% 194,314 8%

Long-term investments 53,057 50,283 50,946

Fixed assets 4,850 4,400 4,835

Other assets 8,137 7,023 2,115

Total Assets 275,746 248,128 11% 252,209 9%

Accounts payable 55,333 47,214 17% 57,869 -4%

Current Liabilities 133,928 116,087 15% 121,729 10%

Total Liabilities 140,546 120,771 16% 126,147 11%

Paid-in capital 7,428 7,528 7,528

Stockholders' equity 135,200 127,358 6% 126,062 7%

Days of Inventory 63 74 68 Days of AR 51 53 47 Days of AP 53 50 58 CCC Days 61 77 57

Business Highlights

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By Product By Region

4Q 2013 Revenue Mix

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2013 2012

2013 Product Mix

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2013 2012

2013 Region Mix

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1Q 2014 Shipment Outlook

targets

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014

NB/hybrid 4.7m 4.1m 4.5m 5.5m 4.8m

EPAD 3.0m 2.0m 3.5m 3.6m 2.4m

MB 5.0m 5.0m 5.5m 5.2m 5.0m

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Strategy & Outlook

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In Search Of Incredible創新迎戰變中求勝

Aiming 3‐in‐1 Market 

ZenFone

PadFone

PadFone mini

Nexus 7

Fonepad

MeMO Pad

Transformer Pad

Vivo Tab

Transformer Book

VivoBook

ZENBOOK

TouchBeauty ResponsivenessSound Ubiquity

Customer Happiness 2.0Despite industry,

customer happiness is always the most important thing

Desktop

100%Growth in volume & profit

ASUS Chromebox for Meetings

Mettings with anyone, anywhereJoint conference with up to 15 participants

Instant CollaborationWireless screen sharing

Easy to managementUp-to-date features and security fixes

ASUS NB Strategy

Gain share Grow TAM

LeadZenbook /Gaming

Game Changer Transformer 

Book

TrioGrow TAM

New EeePCTransformer 

Book

T100, T200Grow TAM

ChromeBook

C200, C300Grow TAM

Attack Clamshell NB

N, K, XGain share

ASUS NB

2013 Q4

NO.32014

Incredible momentum with T100Weakening competitorsCompetitors withdraw

T100

EeePCRevival

• Windows tablet

• Keyboard docking station

with USB 3.0

• Microsoft office

• New life to EeePC,

Windows tablet &

Windows 8

Performance & Mobility

• Quad-core CPU

• Battery life (11 hrs)

Entertainment & Productivity

ASUS Tablet StrategyInnovation Leading Perfection Cost

Max (Value / Cost)Disruptive InnovationInnovative Leader(Premium Position)

Tablet Market

Source: Industry data & ASUS estimates

ASUS Goal

2013 2014 (e)

十年磨劍 破繭而出

‧ ‧Benchmarking Apple & Samsung

Incredible price

沉魚落雁之美 ·

ASUS Smartphone Design Philosophy

怦然心動之價千錘百練之質 ·

出神入化之技

沉魚落雁之美 · 出神入化之技 · 千錘百練之質 · 怦然心動之價

Innovative Leader(Premium Position)

Disruptive InnovationMax (Value / Cost)

ASUS Smartphone Strategy

“PadFone... the Best Phone-to-Tablet Transformer Series is Landing Exclusively at AT&T ” - CNET

“Finally, one of the most interesting Android devices is coming to the United States ” - Android Authority

PadFone X won CES 2014 Editors‘ Choice Awards (USA Today)

PadFone X

Styling DesignColor DIYGorilla Touch Panel ASUS TruVividTechnologySmoothest Touch

ZenFone

Pixel Master CameraSonic Master Audio1080P Video Playback42Mb DC-HSPA+

“ZenUI… seeks to simplify the user experience… really feels quite pleasant… proved responsive and snappy” - PhoneArena

ZenUI

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

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

Q & A

Confidential34

UBS, Analyst

1. Is it possible to raise 2014 shipment target?

2. Your OPM% target in 2014?

3. Please comment on the relationship and nexus project with Google?

4. Handset shipment target in this year?

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Fubon Securities, Analyst

1. Considering the changes in NB industry landscape, possible upsides in your 2014 shipment?

2. The plan and outlook on more 2 in 1 devices?

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Unidentified Investor

1. Is the gross margin of smartphone lower than corporate average gross margin?

2. Will you work with telcom carriers on ZenFonedistribution?

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Robert Cheng, Merrill Lynch, Analyst

1. With more handset volumes, do you see higher IP risk, will you increase the IP reservation per unit for smartphone?

2. Your headset distribution in terms of regional exposure?

3. As you use relatively more Intel solutions on handsets, what might be different in terms of customer perception?

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Ellen Tseng, Macquarie, Analyst

1. Does Intel provide some support to your phone business, as ZenFone has Intel Inside label with it?

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Unidentified Investor

1. What’s your view on the overall hardware industry landscape? What’s your capital management plan in light of the different landscape?

2. What’s the plan on cloud, software or service solutions?

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Angela, KGI, Analyst

1. What’s your plan on marketing expense and overall OPEX in 2014?

2. What’s your plan to expand into more new product areas and channels in China market, for example DT and smartphone?

3. What’s the expected percentage of sales on Chrome device in 2014?

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Grace Chen, Morgan Stanley, Analyst

1. Does T100 replace some NB demand or create new demand?

2. How will you expand DT business, any potential impact to MB and NB? The margin profile of DT?

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Unidentified Investor

1. What’s the penetration rate of Touch solution in NB device in 2014?

2. What’s the expected regional exposure in terms of sales in 2014?

3. Will you consider using MediaTek or China vendors’ solution on handsets?

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Jenny Lai, HSBC, Analyst

1. What’s your product strategy on 2 in 1 or 3 in 1 deices??

2. As T100 generate nice gross margin, is it a result of the docking keyboard making better margins?

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Julie, UBS, Analyst

1. What’s your long term targets on OPM% and ROE? Still in 4~5% OPM?

2. Will you use China ODM supplier?

ASUSTeK4Q 2013 Investor Conference