Global Technology| July 22, 2015 AAssppeeeedd:: QQuuaarrtteerrllyy aanndd AAnnnnuuaall EEaarrnniinnggss EEssttiimmaattee EExxhhiibbiitt 1199:: Aspeed: Quarterly and annual earnings estimates NT$ in million 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15E 3Q15E 4Q15E 2013 2014 2015E 2016E 2017E 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Revenues 178 229 212 237 242 206 271 304 591 856 1,024 1,480 1,799 Sequential Change 20.2% 28.4% -7.1% 11.7% 2.2% -14.8% 31.2% 12.4% Change vs Year Ago 28.3% 46.7% 43.2% 60.2% 36.2% -9.7% 27.6% 28.4% 22.0% 44.9% 19.7% 44.5% 21.6% Cost of Sales 81 101 94 108 108 92 121 136 271 385 457 647 785 Percent of Revenues 46% 44% 44% 46% 45% 45% 45% 45% 46% 45% 45% 44% 44% Gross Margin 97 128 118 129 134 114 150 168 320 471 568 833 1,014 Percent of Revenues 54.2% 55.8% 55.7% 54.3% 55.5% 55.4% 55.4% 55.3% 54.2% 55.0% 55.4% 56.3% 56.4% Incremental Margin 63% 61% NM 43% 105% NM 55% 55% 48% 57% 57% 58% 57% Total Opex 35 44 43 44 42 43 51 52 138 166 188 285 349 Percent of Revenues 19.6% 19.3% 20.0% 18.7% 17.2% 20.7% 18.9% 17.1% 23.4% 19.4% 18.3% 19.2% 19.4% R&D 25 29 28 29 26 28 35 36 88 111 125 198 252 Percent of Revenues 14.1% 12.9% 13.1% 12.2% 10.8% 13.6% 12.9% 11.8% 14.9% 13.0% 12.2% 13.4% 14.0% General & administrative 9 9 10 10 10 10 10 10 35 38 40 54 57 Percent of Revenues 5.2% 3.8% 4.7% 4.2% 4.1% 4.8% 3.7% 3.3% 5.9% 4.4% 3.9% 3.6% 3.2% Selling & marketing 0 6 5 5 6 5 6 6 15 17 23 33 40 Percent of Revenues 0.2% 2.7% 2.3% 2.2% 2.3% 2.3% 2.3% 2.0% 2.6% 1.9% 2.2% 2.2% 2.2% Operating Income 62 83 76 85 93 72 99 116 182 305 380 549 665 Percent of Revenues 34.7% 36.5% 35.6% 35.6% 38.2% 34.7% 36.5% 38.2% 30.8% 35.7% 37.1% 37.1% 37.0% Change vs Year Ago 53.0% 83.7% 53.8% 79.2% 50.2% -14.1% 30.7% 37.7% 18.3% 67.7% 24% 44% 21% Total Non-operating Income(Loss) 3 (2) 7 11 (1) 2 2 2 12 20 5 8 8 Profit Before Taxes 65 82 83 96 92 74 101 118 194 325 385 557 673 Percent of Revenues 37% 36% 39% 40% 38% 36% 37% 39% 33% 38% 38% 38% 37% Taxes 7 12 10 15 11 11 11 13 23 45 46 77 93 Tax Rate 11.4% 15.3% 12.2% 15.2% 11.8% 15.0% 11.0% 11.0% 12.0% 13.7% 12.0% 13.9% 13.8% Net Income, Cont Ops 58 69 73 81 81 63 90 105 171 281 339 479 580 Percent of Revenues 32% 30% 34% 34% 33% 30% 33% 35% 28% 29% 33% 32% 32% Reported Income (TW GAAP) 58 69 73 81 81 63 90 105 171 281 339 479 580 Percent of Revenues 32% 30% 34% 34% 33% 30% 33% 35% 29% 33% 33% 32% 32% Change vs Year Ago 0% 0% 0% 0% 0% 0% 0% 0% 26% 64% 21% 41% 21% Reported EPS (NT$, TW GAAP) 2.42 2.91 2.77 3.10 3.09 2.40 3.43 4.02 7.39 10.72 12.93 18.29 22.14 Change vs Year Ago 28% 57% 47% 55% 27% -17% 24% 30% 14% 45% 21% 41% 21% Source: Morgan Stanley Research estimates 45