TWSE 6277

ATEN International May , 2019

Company Profile

2

Reading ATEN by Numbers

40

1.6K

Years of

Excellence

Employees

Worldwide

Global KVM Market Leader

# Best Taiwan Global Brand

570+ Patents Awarded

50%+ Gross Margin Rate

TOP35

3

Source：QYResearch, 2014

Core Advantage

4

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

5

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

Europe Belgium Subsidiary

UK Subsidiary

Russia Office

Turkey Office

Poland Subsidiary

America US Subsidiary (CA)

US Subsidiary (NJ)

Oceania ANZ Subsidiary

6

Korea The Bunker

Korea Seoul Showroom

Yongsan

Japan Osaka Showroom

Japan Tokyo Showroom

Taiwan CIC Room

Taiwan HQ War Room

China Smart Matrix

Center

Singapore Partner Showcase

India Bangalore

Showroom

Malaysia Kuala Lumpur

Partner Showroom

Thailand Bangkok Partner

Showroom

Australia Sydney Showcase

Indonesia Jakarta Partner

Showcase

South Africa Johannesburg

Partner Showcase

Hungary Budapest Partner

Showcase

Romania Partner

Showcase

Poland Warsaw

Showroom

Turkey Ankara Showroom

Egypt Cairo Partner Showcase

Spain Madrid Showroom

UK Slough Showroom

USA New Jersey Showroom

USA Irvine Showroom

Italy Demo & Training

Center Milan

24 showroom，6 established in 2018

(Poland、Italy、Taiwan、China、Romania、Spain) ATEN Showroom Global Location

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.

8

Multi-Industry Customers Bring Stable Profit

9

Future Strategy

10

Future 2-3 years strategy

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 11

ATEN product line：High Performance KVM

9.7% of 2017 sales revenue

10.5% of 2018 sales revenue

ATEN product line： Secure KVM

0.4% of 2017 sales revenue 0.6% of 2018 sales revenue

ATEN product line： Control System

0.1% of 2017 sales revenue 0.2% of 2018 sales revenue

KVM Target Applications

Factory

Product

Line

Office

Desktop Broadcasting Server Room

Management

Control

Room

12

Pro-AV Target Applications

Smart Meeting

Room

Control Room

Interactive Classroom

Digital Signage

13

Financial Performance

14

Consolidated Statements of Comprehensive Income – 1Q19 (YoY)

Note : Taiwan Consolidated Basis 15

In NT million

Amount % Amount % Amount %

Net Sales 1,156 100.0 1,273 100.0 -118 -9.2

Gross Profit 690 59.7 757 59.4 -67 -8.8

Operating Expenses 542 46.9 507 39.8 35 6.9

Sales Expenses 295 25.5 268 21.1 26 9.9

Admin. Expenses 124 10.7 123 9.6 1 1.0

RD Expenses 123 10.7 116 9.1 7 6.2

Operating Profit 148 12.8 250 19.6 -102 -40.8

Non-Operating Income and Expenses 10 0.9 14 1.1 -4 -29.7

Net Income before Tax 158 13.7 264 20.8 -106 -40.2

Tax 42 3.6 77 6.1 -36 -46.2

Net Income 117 10.1 187 14.7 -70 -37.6

EPS(NT$) (After Tax) 0.98 1.54 -0.56

1Q19 1Q18 YoY

Balance Sheet – Mar. 2019 YoY

Note : Taiwan Consolidated Basis 16

In NT Million

Amount % Amount % Amount %

Cash and Financial Assets 2,607 37 1,740 29 867 50

Accounts Receivable 696 10 703 12 -7 -1

Inventory 1,097 16 907 15 190 21

Other Current Assets 99 1 97 2 2 2

Total Current Assets 4,499 64 3,446 58 1052 31

Property, Plant, and Equipment 1,977 28 2,018 34 -41 -2

Other Non-Current Assets 566 8 499 8 67 13

Total Non-Current Assets 2,544 36 2,518 42 26 1

Total Assets 7,042 100 5,964 100 1078 18

Short-term Borrowings 646 9 506 8 140 28

Accounts Payable 393 6 498 8 -105 -21

Other Current Liabilities 820 12 692 12 128 19

Total Current Liabilities 1,860 26 1,696 28 164 10

Long-term Borrowings 23 0 34 1 -11 -32

Other Non-Current Liabilities 453 6 335 6 118 35

Total Non-Current Liabilities 476 7 369 6 107 29

Total Liabilities 2,335 33 2,065 35 270 13

Total Equity 4,707 67 3,899 65 808 21

Receivable turnover days 56 6.49 51 7.20Inventory turnover days 211 1.73 152 2.40Payable turnover days 85 4.30 85 4.27

Mar. ’19 Mar. ‘18 YoY

Cash Flow – From Jan.- Mar. 2019 YoY

Note : Taiwan Consolidated Basis

In NT Million Jan.~ Mar. ’19 Jan.~ Mar. ‘18Amount Amount

Cash and cash equivalents at beginning of period 692 840

From Operating -430 2

Net Profit before Tax 158 264

Depreciation and Amortization 36 23

Investment income under equity method -6 -11

Financial assets held for trading -498 -148

Inventory -39 -90

Other Operation Sources / (Uses) -82 -36

From Investing 555 -17

Property, plant and equipment -6 -14

Disposal of Investment income under equity method 561 0

Other Investing Sources / (Uses) 0 -3

From Financing -135 -236

Short-Term Borrowings -111 -229

Long-Term Borrowings -3 -3

Other Financing Sources / (Uses) -22 -4

Effect of exchange rate changes on cash and cash equivalents 5 11

Cash and cash equivalents at end of period 686 601

Free Cash Flow 125 -1417

Without Trading

Financial Assets

+68

Without Trading

Financial Assets

+150

Including Trading

Financial Assets

+57

Including Trading

Financial Assets

-164

Sales by Product Categories YoY

124 103

77 86

131 96

313 298

390 365

485 445

170

153

0

300

600

900

1200

1500

1800

2018 01-04 2019 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

Infrastructur

e Access

Management

-Enterprise

(Over-IP)

9.9%

IT

Infrastructure

Access

Management

-Enterprise

(Non Over-IP)

28.8%

IT

Infrastructure

Access

Management

-SMB 23.6%

Pro-AV 19.3%

USB 6.2%

Accessories

5.6% Others 6.7%

2019 01-04

18

Total YoY -8.5%

YoY -10.3%

YoY -6.4%

YoY -4.8%

YoY -26.5% YoY 11.9%

YoY -16.6%

YoY -8.3%

Sales by Product Region YoY

377 382

491 395

799 749

0

300

600

900

1200

1500

1800

2018 01-04 2019 01-04

Asia 48%

America 26%

Europe 25%

2019 01-04 NT Million

19

Total YoY -8.5%

YoY -6.3%

YoY -19.6%

YoY 1.1%

Recent Event

Date：May 28 - June 1, 2019

Location：Taipei Nangang Exhibition Center, Hall 2

Booth No.：P0514

Must-See Solution：High-Tech Production Line, TV Studio

Control Room, Air Traffic Control, Collaborative Spaces

12

Q&A

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.

21

Sales by Product Categories YoY

91 81

57 61

93 70

237 231

300 277

365 326

131

110

0

260

520

780

1040

1300

2018 01-03 2019 01-03 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

Infrastructur

e Access

Management

-Enterprise

(Over-IP)

9.5%

IT

Infrastructure

Access

Management

-Enterprise

(Non Over-IP)

28.2%

IT

Infrastructure

Access

Management

-SMB 23.9%

Pro-AV 20.0%

USB 6.1%

Accessories

5.3% Others 7.0%

2019 01-03

23

YoY -16.0%

YoY -7.9%

YoY -2.6%

YoY -24.2% YoY 7.9%

YoY -10.9%

Total YoY -9.2%

YoY -10.6%

Sales by Product Region YoY

284 291

355 290

617 560

0

260

520

780

1040

1300

2018 01-03 2019 01-03

Asia 48%

America 25%

Europe 25%

2019 01-03 NT Million

24

Total YoY -9.2%

YoY -9.4%

YoY -18.3%

YoY 2.6%