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ACER Interim / Quarterly Report 2013

Jun 27, 2013

10414_rns_2013-06-27_3361f797-edfc-4a58-aed2-ac4faf5348e6.pdf

Interim / Quarterly Report

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Acer 1Q13 Investor Conference May 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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(IFRS-comparison base)

(NT$ mn) 1Q13 4Q12 QoQ
Change
Revenue 91,973
**100.0% **
101,540
100.0%
-9.4%
Gross Profit(IFRS) 7,832
**8.5% **
8,859
8.7%
-11.6%
Gross Profit(ROC GAAP) 9,581
10.4%
10,609
10.4%
-9.7%
OperatingExpenses* 7,804
8.5%
12,230
12.0%
-36.2%
Operating Income 29
**0.0% **
(3,371) -3.3% N.A.
Non-OperatingIncome 421
0.5%
(624) -0.6% N.A.
PBT 450
**0.5% **
(3,994) -3.9% N.A.
PAT 515
**0.6% **
(3,359) -3.3% N.A.
EPS(after impairment) (NT$) 0.19 (1.25)
  • 4Q12 operating expenses includes one-time intangible impairment loss

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2 ACER CONFIDENTIAL

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

(NT$ mn) 1Q13 1Q12 YoY
Change
Revenue 91,973
**100.0% **
113,064
100.0%
-18.7%
Gross Profit(IFRS) 7,832
**8.5% **
8,468
7.5%
-7.5%
Gross Profit(ROC GAAP) 9,581
10.4%
10,607
9.4%
-9.7%
OperatingExpenses 7,804
8.5%
8,186
7.2%
-4.7%
Operating Income 29
**0.0% **
282 0.2% -89.7%
Non-OperatingIncome 421
0.5%
284 0.3% 48.2%
PBT 450
**0.5% **
566 0.5% -20.5%
PAT 515
**0.6% **
285 3.4% 80.7%
EPS(after impairment) (NT$) 0.19 0.10

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3 ACER CONFIDENTIAL

Consolidated Revenue and GM Trend

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180,000 12.0%
(NT$ mn)
ROC GAAP
GM 10.4%
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
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
Revenue Growth YoY -7% -5% 5% 25% 36% 26% 0% -11% -21% -32% -30% -14% -12% 8% -11% -20% -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%
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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%
ROC GAAP
OPM 0.1%
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
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
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%
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Note: 2009-2012 ROC GAAP; 2013 onward IFRS

5 ACER CONFIDENTIAL

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

(NT$ mn) 1Q13 4Q12
Current Assets
Cash and cash equivalents 47,374 21.6% 50,613 22.4%
Notes & Accounts receivable 66,983 30.5% 68,474 30.3%
Financial Assets-Current 692 0.3% 387 0.2%
Inventories 39,857 18.2% 43,337 19.1%
Other current assets 7,565 3.4% 6,218 2.7%
Total Current Assets 162,471 74.0% 169,029 74.7%
Long-term Investment 3,540 1.6% 3,543 1.6%
Property, plant and equipment,net 6,584 3.0% 6,348 2.8%
Intangible asset 39,535 18.0% 39,135 17.3%
Others 7,310 3.3% 8,261 3.7%
Total Assets 219,440 100.0%
226,316
100.0%
Short-term loan 6,353 2.9% 14,134 6.2%
Notes & Accountspayable 62,869 28.6% 71,639 31.7%
Other current liabilities 54,921 25.0% 56,986 25.2%
Total Current Liabilities 124,143 56.6% 142,759 63.1%
Total non-current liabilities 18,602 8.5% 9,353 4.1%
Total Liabilities 142,745 65.0%
152,112
67.2%
Total Shareholders' Equity 76,696 35.0% 74,204 32.8%

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6 ACER CONFIDENTIAL

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

(NT$ mn) 1Q13 1Q12
Current Assets
Cash and cash equivalents 47,374 21.6% 60,098 23.8%
Notes & Accounts receivable 66,983 30.5% 77,292 30.6%
Financial Assets-Current 692 0.3% 370 0.1%
Inventories 39,857 18.2% 43,404 17.2%
Other current assets 7,565 3.4% 7,937 3.1%
Total Current Assets 162,471 74.0% 189,101 74.8%
Long-term Investment 3,540 1.6% 3,902 1.5%
Property, plant and equipment,net 6,584 3.0% 6,780 2.7%
Intangible asset 39,535 18.0% 44,436 17.6%
Others 7,310 3.3% 8,635 3.4%
Total Assets 219,440 100.0%
252,854
100.0%
Short-term loan 6,353 2.9% 109 0.0%
Notes & Accountspayable 62,869 28.6% 83,499 33.0%
Other current liabilities 54,921 25.0% 61,743 24.4%
Total Current Liabilities 124,143 56.6% 145,351 57.5%
Total non-current liabilities 18,602 8.5% 28,661 11.3%
Total Liabilities 142,745 65.0%
174,013
68.8%
Total Shareholders' Equity 76,696 35.0% 78,841 31.2%

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7 ACER CONFIDENTIAL

IT Product Revenue Breakdown by Geography

Q1, 2013 US$2,992M (NT$88,506M)

Q1, 2012 US$3,716M (NT$110,322M)

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16%
21%
25%
EMEA Pan America
Asia Pacific G. China
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17%
38%
20%
26%
EMEA Pan America
Asia Pacific G. China
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37%
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ACER CONFIDENTIAL

8

IT Product Revenue Breakdown

Q1, 2013 US$2,992M (NT$88,506M)

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Q1, 2012
US$3,716M
(NT$110,322M)
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6% 3% [4%]
8%
9%
9%
18%
15% 62%
66%
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Notebook Desktop Display Tablet Others

Notebook Desktop Display Tablet Others

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9 ACER CONFIDENTIAL

Marketing is about helping the company make products people want and helping people buy them easily.

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10

ACER CONFIDENTIAL

The two-year efforts of “Progressive Design” with strong customer insight focus has born the products consumers desire

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11

ACER CONFIDENTIAL

Acer Brand Positioning

We make tools for modern day explorers. We help our device users to explore beyond their limits.

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12 ACER CONFIDENTIAL

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Thank you

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