ACER — Interim / Quarterly Report 2017

Sep 6, 2017

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

2017 Second Quarter Earnings August 2017

==> 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 2017

(NT$ million)	2Q17	2Q17	1Q17	1Q17	QoQ Change	2Q16	2Q16	YoY Change
Revenue	53,604	100%	56,052	100%	-4.4%	56,162	100%	-4.6%
Realized Gross Profit	6,087	11.4%	5,425	9.7%	12.2%	5,400	9.6%	12.7%
OperatingExpenses	5,167	9.6%	4,997	8.9%	3.4%	5,724	10.2%	-9.7%
Operating Income	992	1.8%	456	0.8%	117.7%	(279)	-0.5%	N.A.
Non-OperatingIncome	(696)	-1.3%	(513)	-0.9%	N.A.	1,054	1.9%	N.A.
Profit Before Tax	296	**0.6% **	(57)	-0.1%	N.A.	775	1.4%	-61.9%
Profit After Tax	244	0.5%	63	0.1%	289.2%	538	1.0%	-54.7%
EPS(NT$)	0.08		0.02			0.18

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

2

Statements of Comprehensive Income – 1H 2017

(NT$ million)	Six months ended 30-Jun-17	Six months ended 30-Jun-17	Six months ended 30-Jun-16	Six months ended 30-Jun-16	YoY Change
Revenue	109,657	100.0%	112,478	100.0%	-2.5%
Realized Gross Profit	11,511	10.5%	12,072	10.7%	-4.6%
OperatingExpenses	10,164	9.3%	11,643	10.4%	-12.7%
Operating Income	1,447	1.3%	588	0.5%	146.1%
Non-OperatingIncome	(1,209)	-1.1%	264	0.2%	N.A.
Profit Before Tax	239	0.2%	852	0.8%	-72.0%
Profit After Tax	307	0.3%	585	0.5%	-47.6%
EPS(NT$)	0.10		0.19

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

3

Net Sales and Gross Margin Trend

Net Sales Unit: NT$ billion

Net Sales Gross Margin

==> picture [552 x 216] intentionally omitted <==

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

80.0
67.2 68.4
61.7
58.6
60.0 56.3 56.2 56.1 53.6
40.0
11.8%
11.4%
9.4% 9.6% 9.5% 9.0% 9.7%
8.1%
20.0
-
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
----- End of picture text -----

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

4

Operating Income and Operating Margin Trend

==> picture [596 x 264] intentionally omitted <==

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

Operating Income
Operating Income Operating Margin
Unit: NT$ million
1,800 -1.05% 0.66% 1.54% -0.50% 0.80% 0.22% 0.81% 1.85%
1,400
992
866
1,000
600 449 471 456
133
200
(200)
(279)
(600)
(704)
(1,000)
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
----- End of picture text -----

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

5

Consolidated Balance Sheet

(NT$ million)	Jun-17	Jun-17	Mar-17	Mar-17	Jun-16	Jun-16
Cash and cash equivalents	21,117	14%	28,781	20%	41,667	26%
Notes & Accounts receivable	42,454	29%	39,026	27%	42,389	27%
Inventories	47,873	32%	41,792	29%	29,589	19%
Long-term Investment	6,247	4%	5,433	4%	4,126	3%
Property, plant and equipment	4,134	3%	4,182	3%	4,597	3%
Intangible asset	17,542	12%	17,500	12%	25,577	16%
Others	4,131	3%	4,001	3%	4,325	3%
Total Assets	148,564	100%	146,014	100%	157,770	100%
Short-term loan	3,358	2%	4,878	3%	20	0%
Notes & Accountspayable	34,911	23%	33,820	23%	35,687	23%
Total Current Liabilities	86,117	58%	83,275	57%	84,568	54%
Long-term loan	4,203	3%	5,100	3%	6,000	4%
Total Liabilities	93,080	63%	91,011	62%	93,870	59%
Total Shareholders' Equity*	55,485	37%	55,003	38%	63,901	41%

Notes:

1. Total outstanding common shares: 3,030,011,538 shares; Book value per share NT$ 18.31.

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 2017

IT Hardware Product in Q2 2016

EMEA Pan America Pan Asia Pacific

EMEA Pan America Pan Asia Pacific

==> picture [271 x 131] intentionally omitted <==

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

Pan Asia
Pacific
EMEA
31%
40%
Pan
America
29%
----- End of picture text -----

==> picture [263 x 138] intentionally omitted <==

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

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

NT$ 50,144 Million

NT$ 53,065 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 2017

IT Hardware Product in Q2 2016

==> picture [320 x 176] intentionally omitted <==

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

NB PC Desktop PC Display Others
Others
7%
Display
13%
Desktop PC
15%
NB PC
65%
----- End of picture text -----

==> picture [319 x 177] intentionally omitted <==

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

NB PC Desktop PC Display Others
Others
9%
Display
14%
Desktop PC
16% NB PC
61%
----- End of picture text -----

NT$ 50,144 Million

NT$ 53,065 Million

Notes:

1. NB includes detachable 2-in-1 NB PC.

2. Desktop PC excludes displays.

3. Display includes desktop monitor and projector.

4. Others include servers, android tablet, smartphone, VR, service, and accessories.

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

8

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

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