TWSE 6277

ATEN International

Financial Performance

2

In NT million YoY

Amount % Amount % %

Net Sales 1,273 100 1,192 100 7

COGS 517 41 475 40 9

Gross Profit 757 59 717 60 6

Operating Expenses 507 40 494 41 3

Sales Expenses 268 21 247 21 8

Admin. Expenses 123 10 137 12 -11

RD Expenses 116 9 109 9 7

Operating Profit 250 20 224 19 12

Non-Operating Income and Expenses 14 1 11 1 26

Net Income before Tax 264 21 235 20 13

Tax 77 6 52 4 48

Net Income 187 15 182 15 2

Net Income Attributable to the parent

company 184 14 181 15 2

EPS(NT$) (After Tax) 1.54 - 1.52 - 1

Jan. ~ Mar. ’18 Jan. ~ Mar. ‘17

Note : Taiwan Consolidated Basis

Income Statement – From Jan.- Mar. 2018 YoY

3

In NT million YoY

Amount % Amount % %

Cash and Financial Assets 1,740 29 1,853 31 -6

Accounts Receivable 703 12 622 11 13

Inventory 907 15 799 14 14

Other Current Assets 97 2 80 1 21

Total Current Assets 3,446 58 3,354 57 3

Property, Plant, and Equipment 2,018 34 2,021 34 0

Other Non-Current Assets 499 8 522 9 -4

Total Non-Current Assets 2,518 42 2,543 43 -1

Total Assets 5,964 100 5,897 100 1

Short-term Borrowings 506 8 609 10 -17

Accounts Payable 498 8 420 7 19

Other Current Liabilities 692 12 632 11 9

Total Current Liabilities 1,696 28 1,661 28 2

Long-term Borrowings 34 1 45 1 -24

Other Non-Current Liabilities 335 6 345 6 -3

Total Non-Current Liabilities 369 6 390 7 -5

Total Liabilities 2,065 35 2,051 35 1

Total Equity 3,899 65 3,846 65 1

Receivable turnover days 51 7.20 47 7.74Inventory turnover days 152 2.40 151 2.42Payable turnover days 85 4.27 76 4.77

Mar. ’18 Mar. ‘17

Balance Sheet – Mar. 2018 YoY

Note : Taiwan Consolidated Basis 4

In NT million Jan.~ Mar. ’18 Jan.~ Mar. ‘17

Amount Amount

Cash and cash equivalents at beginning of period 840 795

From Operating 2 150

Net Profit before Tax 264 235

Depreciation and Amortization 23 21

Investment income under equity method -11 -8

Financial assets held for trading -148 -64

Inventory -90 -25

Other Operation Sources / (Uses) -36 -9

From Investing -17 -21

Property, plant and equipment -14 -21

Other Investing Sources / (Uses) -3 0

From Financing -236 -49

Short-Term Borrowings -229 -43

Long-Term Borrowings -3 -2

Other Financing Sources / (Uses) -4 -3

Effect of exchange rate changes on cash and cash equivalents 11 -44

Cash and cash equivalents at end of period 601 831

Free Cash Flow -14 129

Cash Flow – From Jan.- Mar. 2018 YoY

Note : Taiwan Consolidated Basis 5

Sales by Product Categories YoY

124 123 63 85 89 131

294 306

382 390

593 655

0

300

600

900

1200

1500

1800

2017 01-04 2018 01-04 NT Million

IT架構管理解決方案 -Enterprise

IT架構管理解決方案 -SOHO/SMB

IT架構管理解決方案 -Enterprise

IT

Infrastructure

Access

Management

Solution-

Enterprise

38.8%

IT

Infrastructure

Access

Management

Solution-SMB

23.1%

Pro-AV

18.1%

USB 7.7%

Accessories

5.0% Others

7.3%

2018 01-04

6

Sales by Product Region YoY

377 377

470 470

741 820

0

300

600

900

1200

1500

1800

2017 01-04 2018 01-04

Asia 49%

America 28%

Europe 22%

2018 01-04

NT Million

7

Dividend Policy

4.03

6.2 6.37

5.9

6.6 6.08

3.3

5

5.7 5.2

5.8 5.5

2012 2013 2014 2015 2016 2017

EPS

Cash Dividend (per share)

90.5% 88%

2017 Cash dividend payout ratio hits

record high for the last 10 years！

89% 81%

82%

88%

8

Financial Performance

9

57.6% 58.7% 61.4% 62.4% 60.2% 59.4%

1.34 1.43

1.63

1.83

1.52 1.54

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

0.00

0.40

0.80

1.20

1.60

2.00

2013Q1 2014Q1 2015Q1 2016Q1 2017Q1 2018Q1

Margin rate EPS

Both profit and margin rate

maintain excellent performance！

Core Advantage

10

Extensive R&D Capabilities

Software

OS/FW Design

HW/ME/ID Design

IC/FPGA Design

User-Centered Design

Management

Software

Get the know-how

Outstanding margin performance

11

Worldwide Presence

CANADA R&D

USA (CA)

USA (NJ)

RUSSIA

TURKEY

UK

BELGIUM

KOREA

JAPAN

TAIWAN HQ

TAIWAN

FACTORY

CHINA

CHINA

FACTORY AUSTRALIA

TAIWAN R&D

TAIWAN

Localized

Service

POLAND

CHINA R&D INDIA

R&D /

Manufacturing Canada R&D

China R&D/Factory

Taiwan R&D/Factory

Corporate

Headquarters Taiwan

Asia-Pacific China Subsidiary*

Taiwan Subsidiary*

Japan Subsidiary*

Korea Subsidiary*

India Office(2017)*

Europe Belgium Subsidiary*

UK Subsidiary

Russia Office*

Turkey Office(2016)*

Poland Subsidiary(2017)*

America US Subsidiary (CA)

US Subsidiary (NJ)*

Oceania ANZ Subsidiary

12 * Show room set up between 2017-2018

Cross Product Line Solution

Provide IT and Pro-AV one-stop purchase solution at the same time. ATEN exclusive advantage that no competitor can imitate.

13

Multi-Industry Customers Bring Stable Profit

14

Future Strategy

15

Future 2-3 years strategy

Digit：IP central

management

Security：Security

and surveillance risk

Smart：Smart

collaborate meeting

ATEN product line：High Performance

KVM

ATEN product line： Secure KVM

ATEN product line： Control System

16

Strategy and Industry Trend

Digit：IP central management

Security：Security and surveillance risk

Smart：Smart collaborate meeting

CAGR 11.1%

2014-2019

IHS Report

CAGR 3.1%

2014-2019

IHS Report

CAGR 9.3%

2017-2022

IOTA Report 17

ATEN product line：High Performance KVM

ATEN product line： Secure KVM

ATEN product line： Control System

Growth_KVM-Enterprise

IT

Infrastruct

ure Access

Manageme

nt

Solution-

Enterprise

38.8%

IT

Infrastruct

ure Access

Manageme

nt

Solution-

SMB 23.1% Pro-AV

18.1%

USB 7.7%

Accessories

5.0% Others

7.3%

KVM-Enterprise growth momentum：

1. High Performance KVM

2. Secure KVM

3. LCD KVM

Raise the market share of High

Performance and Secure KVM！

18

Growth_KVM-SMB

IT

Infrastructu

re Access

Manageme

nt

Solution-

Enterprise

38.8%

IT

Infrastructu

re Access

Manageme

nt

Solution-

SMB 23.1%

Pro-AV

18.1%

USB 7.7%

Accessories

5.0%

Others

7.3%

KVM-SMB growth momentum ：

1. USB interface

2. VGA interface

3. DVI interface

4. HDMI interface

5. DisplayPort interface

ATEN is No. 1 vendor at the

KVM-SMB market！

19

KVM Target Applications

Factory

Product

Line

Office

Desktop Broadcasting Server Room

Management

Control

Room

20

Growth_Pro-AV

IT

Infrastructu

re Access

Manageme

nt

Solution-

Enterprise

38.8%

IT

Infrastructu

re Access

Manageme

nt

Solution-

SMB 23.1% Pro-AV

18.1%

USB 7.7%

Accessories

5.0%

Others

7.3%

Pro-AV growth momentum ：

1. HDBaseT Matrix product

2. Networked AV

3. Seamless Switch (1080P→4K)

4. Control System

5. Presentation Switch

21

Pro-AV Product Category Trend

High-end and

Medium product,

61%

Low-end product,

39%

2017

22

High-end and

Medium product,

66%

Low-end product,

34%

2018 01-04

YoY -13% YoY -11%

YoY 14% YoY 11%

Product category shifts to high-end products

Pro-AV Target Applications

Smart Meeting

Room

Control Room

Interactive Classroom

Digital Signage

23

Growth_USB

IT

Infrastruct

ure Access

Manageme

nt

Solution-

Enterprise

38.8%

IT

Infrastruct

ure Access

Manageme

nt

Solution-

SMB 23.1% Pro-AV

18.1%

USB 7.7%

Accessories

5.0% Others

7.3%

USB growth momentum：

1. USA marketing Channels

expand

2. Docking station demand

24

Shareholder

Expectations

Exceptional

ROE

Solid

Management

Team

Niche Market

Diversified

Strategy

Shareholder Expectations

25

QA

26

We have made forward-looking statements in the presentation. Our forward-looking statements contain information regarding, among other things, our financial conditions, future expansion

plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these

expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties, and assumptions about us.

We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risk,

uncertainties and assumptions, the forward-looking events in the conference might not occur and our actual results could differ materially from those anticipated in these forward-looking

statements.