Asus 2015 Annual Report Download - page 5

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I. Letter to Shareholders
Dear Shareholders:
Thank you for your long-term support.
ASUS maintained relatively stable operating performance in 2015, despite challenging global economic
conditions and the effects of fluctuating currency rates on revenue. Throughout the year, we continued to
focus on innovation as we developed and enhanced core products and services. Through these efforts we
were able to achieve above-average growth across key markets.
The ASUS brand promise of In Search of Incredible continues to inspire everything we do. In 2016, we
have been actively pursuing ambitious goals that will drive business. As we focus on product design and
customer experience, we are executing channel marketing and cost management plans in order to expand
operational scale across PC and mobile product lines. To gain a competitive edge, we are also adopting an
open, diversified, and collaborative mindset as we consider strategic plans for developing new IoT
technologies.
Demand for traditional computing devices decreased last year, globally. The industry-wide decrease in
market demand resulted in a 10 percent decline in annual shipments of personal computers. Despite this
trend, ASUS global notebook market share increased to approximately 12 percent. Across the industry,
smartphone shipments declined from 30 to 50 percent growth rates in previous years to just 10 percent
growth in 2015. In this difficult environment, ASUS was able to achieve exponential growth in ZenFone
shipments in target markets. Demand for the ZenFone was particularly strong in emerging markets, where
consumers are investing in smartphones that offer premium features at affordable price points.
In a global environment where consumers are setting higher expectations for product innovation and
quality, ASUS sees opportunity. As a pioneer of 2-in-1 notebook technology, and as a leading designer of
high-end notebooks and gaming computers and components, ASUS will continue to be a market leader as
we deliver innovation, quality, and exceptional value.
Looking ahead, ASUS will continue to invest in innovation while enhancing core product lines. We will
continue to provide empowering luxury with our ZenFone series, which offers maximum value and the
best user experience. ASUS has already invested in rapidly developing wearables, IoT, virtual reality,
robotics, smart home and smart cities technologies. We will continue to develop these technologies, and
we expect them to thrive over the next five to 10 years.
Operating results for 2015, and the operational outlook for 2016, are summarized as follows:
Financial Performance
The 2015 ASUS Group consolidated revenue totaled NT$472.3 billion, a one percent decrease compared
to 2014. The net income attributable to shareholders of the parent Company accounted for NT$17.1
billion, a reduction of 12 percent compared to 2014. Despite a substantial increase in ASUS smartphone
shipments, due to currency fluctuations in emerging markets revenue growth appeared flat. Overall,
consolidated operating income remained steady in 2015. Operating income for the ASUS brand reached
NT$436.5 billion (unaudited), and operating profit for the ASUS brand reached NT$20.1 billion
(unaudited). Operating income for brand in 2014 was NT$436.3 billion (unaudited), and operating profit
for brand reached NT$20.3 billion (unaudited).
Awards
Building from a people-centric design philosophy inspired by our In Search of Incredible brand promise,
ASUS products continue to gain global recognition through international awards. ASUS won a total of
4,368 international awards in 2015, consistently delivering record-high numbers of winning entries while
receiving recognition for innovation, brand image, customer satisfaction, customer experience, social