ACER — Interim / Quarterly Report 2016

Jan 4, 2017

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2016 Third Quarter Earnings

November 2016

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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 – 3Q 2016

(NT$ million)	3Q16	3Q16	2Q16	2Q16	QoQ Change	3Q15	3Q15	YoY Change
Revenue	58,593	100.0%	56,162	100.0%	4.3%	67,239	100.0%	-12.9%
Realized Gross Profit	5,577	9.5%	5,400	9.6%	3.3%	5,470	8.1%	2.0%
OperatingExpenses	5,138	8.8%	5,724	10.2%	-10.2%	6,336	9.4%	-18.9%
Operating Income	471	0.8%	-279	-0.5%	-	-704	-1.0%	-
Non-OperatingIncome	(111)	-0.2%	1,054	1.9%	-	1,032	1.5%	-
Profit Before Tax	360	0.6%	775	1.4%	-53.5%	327	0.5%	10.0%
Profit After Tax	249	0.4%	538	1.0%	-53.8%	191	0.3%	30.3%
EPS(NT$)	0.08	0.0%	0.18			0.06

Note: Realized Gross Profit includes warranty

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2

Statements of Comprehensive Income – First 9M 2016

(NT$ million)	First 9 month 2016	First 9 month 2016	First 9 month 2015	First 9 month 2015	YoY Change
Revenue	171,070	100.0%	195,392	100.0%	-12.4%
Realized Gross Profit	17,649	10.3%	18,452	9.4%	-4.4%
OperatingExpenses	16,780	9.8%	18,205	9.3%	-7.8%
Operating Income	1,059	0.6%	490	0.3%	116.3%
Non-OperatingIncome	153	0.1%	206	0.1%	-25.6%
Profit Before Tax	1,212	0.7%	695	0.4%	74.3%
Profit After Tax	833	0.5%	367	0.2%	127.3%
EPS(NT$)	0.28		0.12

Note: Realized Gross Profit includes warranty

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3

Net Sales and Gross Margin Trend

Net Sales Unit: NT$ billion

Net Sales

Gross Margin

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100.0
85.9
80.0
67.9 67.2 68.4
60.2
58.6
56.3 56.2
60.0
11.8%
10.5%
40.0 9.8% 9.4% 9.6% 9.5%
8.6% 8.1%
20.0
-
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
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4

Operating Income and Operating Margin Trend

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Operating Income
Operating Income Operating Margin
Unit: NT$ million
1,800 0.95% 0.45% 1.48% -1.05% 0.66% 1.54% -0.50% 0.80%
1,400
890 866
1,000 814
600 449 471
304
200
(200)
(279)
(600)
(704)
(1,000)
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
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5

Consolidated Balance Sheet

(NT$ million)	Sep-16	Sep-16	Jun-16	Jun-16	Jun-15	Jun-15
Cash and cash equivalents	36,622	23%	41,667	26%	36,375	21%
Notes & Accounts receivable	44,230	28%	42,389	27%	57,778	33%
Inventories	32,155	21%	29,589	19%	37,327	21%
Long-term Investment	4,515	3%	4,126	3%	3,148	2%
Property, plant and equipment	4,444	3%	4,597	3%	4,904	3%
Intangible asset	24,714	16%	25,577	16%	26,985	15%
Others	4,306	3%	4,325	3%	4,019	2%
Total Assets	156,385	100%	157,770	100%	176,441	100%
Short-term loan	290	0%	20	0%	10,037	6%
Notes & Accountspayable	37,785	24%	35,687	23%	42,275	24%
Total Current Liabilities	84,511	54%	84,568	54%	105,375	60%
Long-term loan	6,000	4%	6,000	4%	1,800	1%
Total Liabilities	93,793	60%	93,870	59%	110,294	63%
Total Shareholders' Equity*	62,592	40%	63,901	41%	66,147	37%

Notes:

1. Total outstanding common shares: 3,034,256,538 shares; Book value per share NT$ 20.6

2. Total Shareholders' Equity includes Non-Controlling Interests

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6

Quarterly Revenue Breakdown by Geography

IT Hardware Product in Q3 2016

IT Hardware Product in Q3 2015

EMEA Pan America Pan Asia Pacific

EMEA Pan America Pan Asia Pacific

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Pan Asia
Pacific EMEA
33% 38%
Pan
America
29%
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Pan Asia
EMEA
Pacific
37%
37%
Pan
America
26%
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NT$ 55,239 Million

NT$ 63,896 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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Quarterly Revenue Breakdown by Application

IT Hardware Product in Q3 2016

IT Hardware Product in Q3 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% 1% 4% 2%
6% 5%
Display Display
12% 14%
Desktop PC NB PC
15% NB PC Desktop PC
58%
61% 17%
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NT$ 55,239 Million

NT$ 63,896 Million

Notes:

1. Desktop PC excludes displays

2. Display includes desktop monitor and projector

3. Others include servers and accessories

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8

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