ACER — Interim / Quarterly Report 2013

Aug 8, 2013

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Acer 2Q13 Investor Conference Aug 8 2013

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ACER CONFIDENTIAL

Legal Disclaimer

• The information is provided for informational purposes only, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security issued by Acer or other parties.

• Acer’s statements that are not historical facts are forward-looking statements that indicate actions or results of actions that may occur in the future, based on current available information and underlying assumptions.

• Acer does not warranty their accuracy, reliability and completeness. There are a number of factors such as economic conditions, firms abilities, industry environment that could cause actual results and developments to differ materially from those expressed or implied by forward looking statements. Investors should not place undue reliance on them.

ACER CONFIDENTIAL

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Consolidated Income Statement (QoQ Comparison) (IFRS-comparison base)

(NT$ mn)	2Q13		1Q13		QoQ Change
Revenue	89,378	**100.0% **	91,973	100.0%	-2.8%
Gross Profit(IFRS)	7,478	**8.4% **	7,832	8.5%	-4.5%
Gross Profit(ROC GAAP)	8,630	9.7%	9,581	10.4%	-9.9%
OperatingExpenses	8,091	9.1%	7,804	8.5%	3.7%
Operating Income	(613)	**-0.7% **	29	0.0%	N.A.
Non-OperatingIncome	80	0.1%	421	0.5%	-81.0%
PBT	(533)	**-0.6% **	450	0.5%	N.A.
PAT	(343)	**-0.4% **	515	0.6%	N.A.
EPS(NT$)	(0.13)		0.19		N.A.

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2 ACER CONFIDENTIAL

Consolidated Income Statement (YoY Comparison) (IFRS-comparison base)

(NT$ mn)	2Q13		2Q12		YoY Change
Revenue	89,378	**100.0% **	110,573	100.0%	-19.2%
Gross Profit(IFRS)	7,478	**8.4% **	9,267	8.4%	-19.3%
Gross Profit(ROC GAAP)	8,630	9.7%	11,230	10.2%	-23.2%
OperatingExpenses	8,091	9.1%	9,079	8.2%	-10.9%
Operating Income	(613)	**-0.7% **	188	0.2%	N.A.
Non-OperatingIncome	80	0.1%	799	0.7%	-90.0%
PBT	(533)	**-0.6% **	987	0.9%	N.A.
PAT	(343)	**-0.4% **	552	0.5%	N.A.
EPS(NT$)	(0.13)		0.20		N.A.

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3 ACER CONFIDENTIAL

Consolidated Revenue and GM Trend

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180,000 12.0%
(NT$ mn)
160,000
10.0%
140,000
120,000 8.0%
100,000
6.0%
80,000
60,000 4.0%
40,000
2.0%
20,000
0 0.0%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Revenue (LHS) 119,086 119,083 167,617 168,197 162,130 150,262 167,552 149,114 127,799 102,091 117,891 127,562 113,039 110,545 104,408 101,519 91,973 89,378
Revenue Growth YoY -7% -5% 5% 25% 36% 26% 0% -11% -21% -32% -30% -14% -12% 8% -11% -20% -19% -19%
Gross Margin (RHS) 10.0% 10.6% 10.0% 10.2% 9.7% 10.0% 10.0% 11.4% 10.3% 3.1% 9.0% 9.1% 9.4% 10.2% 10.3% 10.5% 8.5% 8.4%
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Note: 2009-2012 ROC GAAP; 2013 onward IFRS

4 ACER CONFIDENTIAL

Consolidated Operating Income

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6,000 6.0%
(NT$ mn)
4,000 4.0%
2,000 2.0%
0 0.0%
-2,000 -2.0%
-4,000 -4.0%
-6,000 -6.0%
-8,000 -8.0%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Op. Income (LHS) 2,571 3,043 4,754 4,972 4,385 4,138 5,291 4,389 1,929 -7,087 -1,320 82 138 433 345 109 29 -613
Op. Margin (RHS) 2.2% 2.6% 2.8% 3.0% 2.7% 2.8% 3.2% 2.9% 1.5% -6.9% -1.1% 0.1% 0.1% 0.4% 0.3% 0.1% 0.0% -0.7%
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Note: 2009-2012 ROC GAAP; 2013 onward IFRS

5 ACER CONFIDENTIAL

Consolidated Balance Sheet (QoQ Comparison) (IFRS-comparison base)

(NT$ mn)	2Q13		1Q13
Current Assets
Cash and cash equivalents	52,046	22.3%	47,374	21.6%
Notes & Accounts receivable	66,505	28.5%	66,983	30.5%
Financial Assets-Current	1,195	0.5%	692	0.3%
Inventories	50,111	21.5%	39,857	18.2%
Other current assets	6,751	2.9%	7,565	3.4%
Total Current Assets	176,608	75.8%	162,471	74.0%
Long-term Investment	3,258	1.4%	3,540	1.6%
Property, plant and equipment,net	6,478	2.8%	6,584	3.0%
Intangible asset	39,465	16.9%	39,535	18.0%
Others	7,307	3.1%	7,310	3.3%
Total Assets	233,116	100.0%	219,440	100.0%
Short-term loan	5,089	2.2%	6,353	2.9%
Notes & Accountspayable	69,631	29.9%	62,869	28.6%
Other current liabilities	57,196	24.5%	54,921	25.0%
Total Current Liabilities	131,916	56.6%	124,143	56.6%
Total non-current liabilities	24,468	10.5%	18,602	8.5%
Total Liabilities	156,384	67.1%	142,745	65.0%
Total Shareholders' Equity	76,731	32.9%	76,696	35.0%

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6 ACER CONFIDENTIAL

Consolidated Balance Sheet (YoY Comparison) (IFRS-comparison base)

(NT$ mn)	2Q13		2Q12
Current Assets
Cash and cash equivalents	52,046	22.3%	44,928	17.6%
Notes & Accounts receivable	66,505	28.5%	89,543	35.0%
Financial Assets-Current	1,195	0.5%	1,555	0.6%
Inventories	50,111	21.5%	49,424	19.3%
Other current assets	6,751	2.9%	5,807	2.3%
Total Current Assets	176,608	75.8%	191,257	74.8%
Long-term Investment	3,258	1.4%	4,158	1.6%
Property, plant and equipment,net	6,478	2.8%	6,615	2.6%
Intangible asset	39,465	16.9%	44,187	17.3%
Others	7,307	3.1%	9,464	3.7%
Total Assets	233,116	100.0%	255,681	100.0%
Short-term loan	5,089	2.2%	-	0.0%
Notes & Accountspayable	69,631	29.9%	86,320	33.8%
Other current liabilities	57,196	24.5%	62,775	24.6%
Total Current Liabilities	131,916	56.6%	149,095	58.3%
Total non-current liabilities	24,468	10.5%	27,310	10.7%
Total Liabilities	156,384	67.1%	176,405	69.0%
Total Shareholders' Equity	76,731	32.9%	79,276	31.0%

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7 ACER CONFIDENTIAL

IT Product Revenue Breakdown by Geography

Q2, 2013 US$2,879M (NT$86,298M)

Q2, 2012 US$3,634M (NT$107,925M)

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17%
20%
26%
EMEA Pan America
Asia Pacific G. China
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37%
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ACER CONFIDENTIAL

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16%
20%
24%
EMEA Pan America
Asia Pacific G. China
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40%
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8

IT Product Revenue Breakdown

Q2, 2013 US$2,879M (NT$86,298M)

Q2, 2012 US$3,634M (NT$107,925M)

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6%
8%
9%
15%
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3% [4%]
9%
17%
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62%
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67%
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Notebook Desktop Display Tablet Others

Notebook Desktop Display Tablet Others

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9 ACER CONFIDENTIAL

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Thank you

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