ACER — Interim / Quarterly Report 2016

Sep 6, 2016

==> picture [120 x 41] intentionally omitted <==

2016 Second Quarter Earnings August 2016

==> picture [720 x 144] intentionally omitted <==

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.

==> picture [52 x 13] intentionally omitted <==

Statements of Comprehensive Income – 2Q 2016

(NT$ million)	2Q16	2Q16	1Q16	1Q16	QoQ Change	2Q15	2Q15	YoY Change
Revenue	56,162	100.0%	56,316	100.0%	-0.3%	60,206	100.0%	-6.7%
Realized Gross Profit	5,400	9.6%	6,671	11.8%	-19.0%	6,318	10.5%	-14.5%
OperatingExpenses	5,724	10.2%	5,919	10.5%	-3.3%	5,478	9.1%	4.5%
Operating Income	(279)	-0.5%	866	1.5%	-	890	1.5%	-
Non-OperatingIncome	1,054	1.9%	(789)	-1.4%	-	(856)	-1.4%	-
Profit Before Tax	775	1.4%	77	0.1%	907.3%	34	0.1%	2172.7%
Profit After Tax	538	1.0%	46	0.1%	1067.9%	2	0.0%	21904.4%
EPS(NT$)	0.18		0.02			0.0008

Note: Realized Gross Profit includes warranty

==> picture [52 x 13] intentionally omitted <==

2

Statements of Comprehensive Income – 1H 2016

(NT$ million)	1H 2016	1H 2016	1H 2015	1H 2015	YoY Change
Revenue	112,478	100.0%	128,153	100.0%	-12.2%
Realized Gross Profit	12,072	10.7%	12,981	10.1%	-7.0%
OperatingExpenses	11,643	10.4%	11,869	9.3%	-1.9%
Operating Income	588	0.5%	1,194	0.9%	-50.8%
Non-OperatingIncome	264	0.2%	(826)	-0.6%	-
Profit Before Tax	852	0.8%	368	0.3%	131.6%
Profit After Tax	585	0.5%	176	0.1%	232.6%
EPS(NT$)	0.19		0.06

Note: Realized Gross Profit includes warranty

==> picture [52 x 13] intentionally omitted <==

3

Net Sales and Gross Margin Trend

Net Sales Unit: NT$ billion

Net Sales

Gross Margin

==> picture [560 x 216] intentionally omitted <==

----- Start of picture text -----

100.0
85.7 85.9
80.0
67.9 67.2 68.4
60.2
56.3 56.2
60.0
11.8%
10.5%
40.0 9.0% 8.6% 9.8% 8.1% 9.4% 9.6%
20.0
-
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
----- End of picture text -----

==> picture [52 x 13] intentionally omitted <==

4

Operating Income and Operating Margin Trend

Operating Income Unit: NT$ million

Operating Income Operating Margin

(1,000) (600) (200) 200 600 1,000 1,400 1,800	1,104 814 304 890 449 866 1.29% 0.95% 0.45% 1.48% -1.05% 0.66% 1.54% -0.50%
	(704) (279)
	3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

==> picture [52 x 13] intentionally omitted <==

5

Consolidated Balance Sheet

(新台幣 百萬元)	Jun-16	Jun-16		Mar-16	Mar-16		Jun-15	Jun-15
現金與約當現金	41,667	26%		39,199	25%		36,401	22%
應收帳款與應收票據	42,389	27%		42,990	28%		48,425	29%
存貨	29,589	19%		30,114	19%		38,932	23%
長期投資	4,126	3%		3,887	2%		3,552	2%
淨固定資產	4,597	3%		4,739	3%		4,989	3%
無形資產	25,577	16%		25,890	17%		25,712	15%
其他資產	4,325	3% 100% 0%		4,033	3% 100% 6%		3,996	2%
資產總計	157,770			155,818			167,564	100%
短期借款	20			8,814			9,998	6%
應付帳款	35,687	23%		31,886	20%		42,238	25%
流動負債總計	84,568	54%		87,223	56%		99,512	59%
長期借款	6,000	4% 59% 41%		-	- 58% 42%		1,800	1%
負債總計	93,870			90,541			104,379	62%
股東權益*總計	63,901			65,277			63,185	38%

Notes:

1. Total outstanding common shares: 3,034,256,538 shares; Book value per share NT$ 21.1

2. Total Shareholders' Equity includes Non-Controlling Interests

==> picture [52 x 13] intentionally omitted <==

6

Quarterly Revenue Breakdown by Geography

IT Hardware Product in Q2 2016

IT Hardware Product in Q2 2015

EMEA Pan America Pan Asia Pacific

EMEA Pan America Pan Asia Pacific

==> picture [273 x 128] intentionally omitted <==

----- Start of picture text -----

Pan Asia
EMEA
Pacific
37%
34%
Pan
America
29%
----- End of picture text -----

==> picture [263 x 133] intentionally omitted <==

----- Start of picture text -----

Pan Asia EMEA
Pacific 33%
37%
Pan
America
30%
----- End of picture text -----

NT$ 53,065 Million

NT$ 57,037 Million

Notes:

1. Pan Asia Pacific includes Asia Pacific, Japan, Taiwan, Hong Kong, and Mainland China.

2. EMEA includes Europe, Middle East and Africa

==> picture [52 x 13] intentionally omitted <==

7

Quarterly Revenue Breakdown by Application

IT Hardware Product in Q2 2016

IT Hardware Product in Q2 2015

==> picture [650 x 177] intentionally omitted <==

----- Start of picture text -----

NB PC Desktop PC Display Tablet Others Smartphone NB PC Desktop PC Display Tablet Others Smartphone
Others Smartphone Others Smartphone
Tablet Tablet
5% 1% 4% 2%
5% 6%
Display
Display
14%
14%
NB PC
Desktop PC NB PC
16% 59% Desktop PC 57%
17%
----- End of picture text -----

NT$ 53,065 Million

NT$ 57,037 Million

Notes:

1. Desktop PC excludes displays

2. Display includes desktop monitor and projector

3. Others include servers and accessories

==> picture [52 x 13] intentionally omitted <==

8

==> picture [120 x 41] intentionally omitted <==

http://acer-group.com Investor.relations@acer.com