ACER — Interim / Quarterly Report 2016

May 26, 2016

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2016 First Quarter Earnings May, 2016

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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.

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Statements of Comprehensive Income – 1Q 2016

(NT$ million)	1Q16	1Q16	4Q15	4Q15	QoQ Change	1Q15	1Q15	YoY Change
Revenue	56,316	100.0%	68,383	100.0%	-17.6%	67,948	100.0%	-17.1%
Realized Gross Profit	6,671	11.8%	6,432	9.4%	3.7%	6,663	9.8%	0.1%
OperatingExpenses	5,919	10.5%	6,017	8.8%	-1.6%	6,390	9.4%	-7.4%
Operating Income	866	1.5%	449	0.7%	93.0%	304	0.4%	184.9%
Non-OperatingIncome	(789)	-1.4%	(298)	-0.4%	-	30	0.0%	-
Profit Before Tax	77	0.1%	151	0.2%	-49.1%	334	0.5%	-76.9%
Profit After Tax	46	0.1%	237	0.3%	-80.6%	173	0.3%	-73.4%
EPS(NT$)	0.02		0.08			0.06

Note: Realized Gross Profit includes warranty

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2

Net Sales and Gross Margin Trend

Net Sales Unit: NT$ billion

Net Sales Gross Margin

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100.0
85.7 85.9
81.3
80.0
67.9 67.2 68.4
60.2
56.3
60.0
11.8%
10.5%
40.0 9.3% 9.0% 8.6% 9.8% 8.1% 9.4%
20.0
-
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
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3

Operating Income and Operating Margin Trend

Operating Income Unit: NT$ million

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Operating Income Operating Margin
Unit: NT$ million
1,800 0.81% 1.29% 0.95% 0.40% 1.48% 0.66% 1.54%
-1.05%
1,400
1,104
1,000 814 890 866
662
600 449
304
200
(200)
(600)
(704)
(1,000)
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
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4

Consolidated Balance Sheet

(NT$ million)	Mar-16	Mar-16		Dec-15	Dec-15	Mar-15	Mar-15
Cash and cash equivalents	39,199	25%		44,622	26%	44,199	25%
Notes & Accounts receivable	42,990	28%		48,226	28%	49,787	28%
Inventories	30,114	19%		34,044	20%	37,997	21%
Total Current Assets	117,268	75%		132,950	77%	139,825	78%
Long-term Investment	3,887	2%		3,316	2%	3,925	2%
Property, plant and equipment	4,739	3%		4,827	3%	5,114	3%
Intangible asset	25,890	17%		26,609	15%	26,131	15%
Others	4,033	3%		4,040	2%	3,983	2%
Total Assets	155,818	100% 6%		171,742	100%	178,978	100%
Short-term loan	8,814			10,351	6%	7,283	4%
Notes & Accountspayable	31,886	20%		42,747	25%	44,232	25%
Total Current Liabilities	87,223	56% 58% 42%		102,576	60%	102,622	57%
Total Liabilities	90,541			105,887	62%	115,229	64%
Total Shareholders' Equity	65,274			65,853	38%	63,747	36%

Notes: Total outstanding common shares: 3,038,696,538 shares; Book value per share NT$ 21.48

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5

Quarterly Revenue Breakdown by Geography

IT Hardware Product in Q1, 2016

IT Hardware Product in Q1, 2015

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EMEA Pan America Pan Asia Pacific
EMEA
Pan Asia
37%
Pacific
38%
Pan
America
25%
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EMEA Pan America Pan Asia Pacific

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Pan Asia
EMEA
Pacific
36%
37%
Pan
America
27%
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NT$ 53,325 Million

NT$ 64,901 Million

Notes:

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

2. EMEA includes Europe, Middle East and Africa

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6

Quarterly Revenue Breakdown by Application

IT Hardware Product in Q1, 2016

IT Hardware Product in Q1, 2015

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NB PC Desktop PC Display Tablet Others Smartphone NB PC Desktop PC Display Tablet Others Smartphone
Others Smartphone Others Smartphone
Tablet Tablet
5% 3% 4% 2%
5% 6%
Display
Display
12%
14%
NB PC
55% Desktop PC NB PC
Desktop PC 17% 59%
18%
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NT$ 53,325 Million

NT$ 64,901 Million

Notes:

1. Desktop PC excludes displays

2. Display includes desktop monitor and projector

3. Others include servers and accessories

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7

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