ACER — Interim / Quarterly Report 2012

Jan 16, 2013

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Acer 3Q12 Investor Conference

Oct 25[th] 2012

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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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Unaudited Consolidated Income Statement (QoQ Comparison) (R.O.C. GAAP-comparison base)

(NT$ mn)	3Q12 2Q12 QoQ Change
Revenue Gross Profit Operating Expenses Operating Income	104,408 100.0% 110,545 100.0% -6% 10,751 10.3% 11,230 10.2% -4% 10,406 10.0% 10,797 9.8% -4% 345 0.3% 433 0.4% -20%
PBT PAT	223 0.2% 586 0.5% -62% 68 0.1% 56 0.1% 21%
EPS, reported(NT$)	0.03 0.02

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2 ACER CONFIDENTIAL

Unaudited Consolidated Income Statement (YoY Comparison) (R.O.C. GAAP-comparison base)

(NT$ mn)	3Q12 3Q11 YoY Change
Revenue Gross Profit Operating Expenses Operating Income	104,408 100.0% 117,891 100.0% -11% 10,751 10.3% 10,562 9.0% 2% 10,406 10.0% 11,883 10.1% -12% 345 0.3% (1,320) -1.1% N.A.
PBT PAT	223 0.2% (1,076) -0.9% N.A. 68 0.1% (1,092) -0.9% N.A.
EPS, reported(NT$)	0.03 (0.43)

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3 ACER CONFIDENTIAL

Consolidated Revenue and GM Trend

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180,000 (NT$ mn) 12.0%
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
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
Revenue Growth YoY -7% -5% 5% 25% 36% 26% 0% -11% -21% -32% -30% -14% -12% 8% -11%
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%
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4 ACER CONFIDENTIAL

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Consolidated Operating Income
6,000 4.0%
(NT$ mn)
4,000
2.0%
2,000
0.0%
0
-2.0%
-2,000
-4.0%
-4,000
-6.0%
-6,000
-8,000 -8.0%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
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
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%
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5 ACER CONFIDENTIAL

Unaudited Consolidated Balance Sheet (QoQ Comparison) (R.O.C. GAAP-comparison base)

	(NT$ mn)	3Q12		2Q12
	Current Assets
	Cash and cash equivalence	33,554	14.4%	44,928	17.5%
	Notes & Account receivable	81,551	35.0%	88,405	34.5%
	Financial Assets-Current	180	0.1%	1,555	0.6%
	Inventory	48,047	20.6%	49,424	19.3%
	Others	8,650	3.7%	9,036	3.5%
	Total Current Assets	171,982	73.7%	193,348	75.4%
	Long-term Investment	3,934	1.7%	4,122	1.6%
	Property, plant and equipment, net	6,718	2.9%	6,839	2.7%
	Intangible asset	43,298	18.6%	44,359	17.3%
	Others	7,293	3.1%	7,603	3.0%
	Total Asset	233,225	100.0%	256,271	100.0%
	Short-term borrowings	5,107	2.2%	-	0.0%
	Account payable	68,708	29.5%	86,322	33.7%
	Other current liabilities	62,568	26.8%	62,873	24.5%
	Total Current Liabilities	136,383	58.5%	149,195	58.2%
	Long-term Debt	13,838	5.9%	22,283	8.7%
	Other Liabilities	4,512	1.9%	4,515	1.8%
	Total Liabilities	154,733	66.3%	175,993	68.7%
	Total Shareholders' Equity	78,492	33.7%	80,278	31.3%

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6 ACER CONFIDENTIAL

Unaudited Consolidated Balance Sheet (YoY Comparison) (R.O.C. GAAP-comparison base)

	(NT$ mn)	3Q12		3Q11
	Current Assets
	Cash and cash equivalence	33,554	14.4%	37,797	15.8%
	Notes & Account receivable	81,551	35.0%	87,205	36.6%
	Financial Assets-Current	180	0.1%	2,165	0.9%
	Inventory	48,047	20.6%	40,105	16.8%
	Others	8,650	3.7%	17,327	7.3%
	Total Current Assets	171,982	73.7%	184,599	77.4%
	Long-term Investment	3,934	1.7%	4,641	1.9%
	Property, plant and equipment, net	6,718	2.9%	7,211	3.0%
	Intangible asset	43,298	18.6%	36,183	15.2%
	Others	7,293	3.1%	5,859	2.5%
	Total Asset	233,225	100.0%	238,493	100.0%
	Short-term borrowings	5,107	2.2%	9,534	4.0%
	Account payable	68,708	29.5%	65,362	27.4%
	Other current liabilities	62,568	26.8%	68,373	28.7%
	Total Current Liabilities	136,383	58.5%	143,269	60.1%
	Long-term Debt	13,838	5.9%	15,444	6.5%
	Other Liabilities	4,512	1.9%	2,373	1.0%
	Total Liabilities	154,733	66.3%	161,086	67.5%
	Total Shareholders' Equity	78,492	33.7%	77,407	32.5%

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7 ACER CONFIDENTIAL

IT Product Revenue Breakdown by Geography

Q3, 2012 US$3,389M (NT$101,133 M)

Q3, 2011 US$3,943M (NT$115,229 M)

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8 ACER CONFIDENTIAL

IT Product Revenue Breakdown

Q3, 2012 US$3,389M (NT$101,133 M)

Q3, 2011 US$3,943M (NT$115,229 M)

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9 ACER CONFIDENTIAL

Consumer Channel 3Q12 Updates

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Windows 7 inventories Windows 8 shipments
• Windows 7 product sell- • Pricing environment for
out shown downward Windows 8 products was
Acer aims to lower
trend in 3Q12 unclear
channel inventory as
• •
Therefore the channel the primary strategic Therefore the channels
decision
inventory of Windows 7 waived immediate
may become obstacle of inventory build-up for
Windows 8 launch Windows 8 products
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ACER CONFIDENTIAL

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Acer: Strategy

• Acer focuses on creating value for end users to co-exist and share prosperity with industry partners.

• Acer Cloud services assist users to manage personal data across platforms and devices to enhance Acer’s customer loyalty.

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ACER CONFIDENTIAL

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Thank you

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