ACER — Interim / Quarterly Report 2017

Jun 22, 2017

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2017 First Quarter Earnings May 2017

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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 2017

(NT$ million)	1Q17	1Q17	4Q16	4Q16	QoQ Change	1Q16	1Q16	YoY Change
Revenue	56,052	100%	61,654	100%	-9.1%	56,316	100%	-0.5%
Realized Gross Profit	5,425	9.7%	5,564	9.0%	-2.5%	6,671	11.8%	-18.7%
OperatingExpenses	4,997	8.9%	5,519	9.0%	-9.5%	5,919	10.5%	-15.6%
Operating Income	456	0.8%	133	0.2%	241.9%	866	1.5%	-47.4%
Non-OperatingIncome	(513)	-0.9%	(6,070)	-9.8%	N.A.	(789)	-1.4%	N.A.
Profit Before Tax	(57)	-0.1%	(5,937)	-9.6%	N.A.	77	0.1%	N.A.
Profit After Tax	63	0.1%	(5,734)	-9.3%	N.A.	46	0.1%	35.9%
EPS(NT$)	0.02		(1.89)			0.02

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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80.0
67.2 68.4
61.7
60.2
58.6
60.0 56.3 56.2 56.1
40.0
11.8%
10.5%
9.4% 9.6% 9.5% 9.0% 9.7%
8.1%
20.0
-
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
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3

Operating Income and Operating Margin Trend

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Operating Income
Operating Income Operating Margin
Unit: NT$ million
1,800 1.48% -1.05% 0.66% 1.54% -0.50% 0.80% 0.22% 0.81%
1,400
890
1,000 866
600 449 471 456
133
200
(200)
(279)
(600)
(704)
(1,000)
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
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4

Consolidated Balance Sheet

(NT$ million)	Mar-17	Mar-17	Dec-16	Dec-16	Mar-16	Mar-16
Cash and cash equivalents	28,781	20%	44,290	27%	39,199	25%
Notes & Accounts receivable	39,026	27%	44,312	27%	42,990	28%
Inventories	41,792	29%	39,095	24%	30,114	19%
Long-term Investment	5,433	4%	4,938	3%	3,887	2%
Property, plant and equipment	4,182	3%	4,321	3%	4,739	3%
Intangible asset	17,500	12%	18,596	11%	25,890	17%
Others	4,001	3%	3,956	2%	4,033	3%
Total Assets	146,014	100%	165,674	100%	155,818	100%
Short-term loan	4,878	3%	6,103	4%	8,814	6%
Notes & Accountspayable	33,820	23%	52,870	32%	31,886	20%
Total Current Liabilities	83,275	57%	105,422	64%	87,223	56%
Long-term loan	5,100	3%	-	-	-	-
Total Liabilities	91,011	62%	107,996	65%	90,541	58%
Total Shareholders' Equity*	55,003	38%	57,678	35%	65,277	42%

Notes:

1. Total outstanding common shares: 3,034,256,538 shares; Book value per share NT$ 18.13

2. *Total Shareholders' Equity includes Non-Controlling Interests

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5

Quarterly Revenue Breakdown by Geography

IT Hardware Product in Q1 2017

IT Hardware Product in Q1 2016

EMEA Pan America Pan Asia Pacific

EMEA Pan America Pan Asia Pacific

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Pan Asia
Pacific
EMEA
32%
43%
Pan
America
25%
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Pan Asia
EMEA
Pacific
37%
38%
Pan
America
25%
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NT$ 52,775 Million

NT$ 53,325 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 2017

IT Hardware Product in Q1 2016

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NB PC Desktop PC Display Others
Others
7%
Display
13%
Desktop PC
15%
NB PC
65%
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NB PC Desktop PC Display Others
Others
10%
Display
14%
NB PC
Desktop PC
58%
18%
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NT$ 52,775 Million

NT$ 53,325 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, service, and accessories.

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7

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