ACER — Interim / Quarterly Report 2018

Aug 31, 2018

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2018 Second Quarter Earnings

August 2018

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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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1

Statements of Comprehensive Income – 2Q 2018

(NT$ million)	2Q 18	1Q 18	QoQ Change	YoY Change 2Q 17
Revenue Realized Gross Profit Operating Expenses Operating Income Non-Operating Income Profit Before Tax	58,476 100% 6,432 11.0% 5,524 9.4% 930 1.6% 256 0.4% 1,186 2.0%	54,804 100% 5,758 10.5% 5,232 9.5% 547 1.0% 477 0.9% 1,024 1.9%	6.7% 11.7% 5.6% 70% -46% 16%	53,604 100% 9.1% 6,087 11.4% 5.7% 5,167 9.6% 6.9% 992 1.8% -6.2% (696) -1.3% N.A. 296 0.6% 301%
Profit After Tax	881 1.5%	708 1.3%	24%	244 0.5% 261%
EPS(NT$)	0.29	0.23		0.08

Note: Realized Gross Profit includes warranty

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2

Statements of Comprehensive Income – 1H 2018

(NT$ million)	Six months ended June 30, 2018	Six months ended June 30, 2017	YoY Change
Revenue Realized Gross Profit Operating Expenses Operating Income Non-Operating Income Profit Before Tax	113,279 100% 12,190 10.8% 10,756 9.5% 1,477 1.3% 733 0.6% 2,211 2.0%	109,657 100% 11,511 10.5% 10,164 9.3% 1,447 1.3% (1,209) -1.1% 239 0.2%	3.3% 5.9% 5.8% 2.1% N.A 827%
Profit After Tax EPS(NT$)	1,589 1.4% 0.53	307 0.3%	418%
		0.10

Note: Realized Gross Profit includes warranty

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3

Net Sales and Gross Margin Trend

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Net Sales Gross Margin
80
67.0
61.7 60.6
58.6 58.5
60 56.1 53.6 54.8
40
11.4% 11.1% 10.7% 10.5% 11.0%
9.5% 9.7%
9.0%
20
0
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
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Net Sales Unit: NT$ billion

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4

Operating Income and Operating Margin Trend

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Operating Income
Unit: NT$ million Operating Income Operating Margin
1.8% 1.5% 1.9% 1.6%
0.8% 0.8% 1.0%
0.2%
1,600
1,290
1,200
992
933 930
800
547
471 456
400
133
0
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
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5

Consolidated Balance Sheet

(NT$ million)	June 30,	2018	March 31,	2018	June 30,	2017
Cash and Cash Equivalents	30,802	20%	29,382	20%	21,117	14%
Notes & Accounts Receivable	44,711	29%	40,642	28%	42,454	29%
Inventories	42,308	27%	39,653	27%	47,873	32%
Long-term Investment	5,896	4%	6,126	4%	6,247	4%
Property, plant and equipment	4,007	3%	4,063	3%	4,134	3%
Intangible asset	17,345	11%	16,847	11%	17,542	12%
Total Assets	155,924	100%	146,804	100%	148,564	100%
Short-term loan	1,000	1%	1,994	1%	3,358	2%
Notes & Accounts Payable	41,450	27%	35,768	24%	34,911	23%
Total Current Liabilities	91,076	58%	82,072	56%	86,117	58%
Long-term loan	3,318	2%	3,300	2%	4,203	3%
Total Liabilities	97,758	63%	88,673	60%	93,080	63%
Total Shareholders' Equity*	58,166	37%	58,131	40%	55,485	37%

Notes:

1. Total outstanding common shares: 3,029,756,538 shares; Book value per share NT$ 18.95

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

6

Quarterly Revenue Breakdown by Geography

Q2 2018 Q2 2017 EMEA Pan America Pan Asia Pacific EMEA Pan America Pan Asia Pacific

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Pan Asia EMEA
Pacific 33%
39%
Pan
America
29%
NT$ 58,476 Million
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Pan Asia
Pacific EMEA
35% 38%
Pan
America
27%
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NT$ 53,604 Million
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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

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Q2 2018 Q2 2017
NB PC Desktop PC Display Others NB PC Desktop PC Display Others
Others Others
Display 13% Display 13%
13% 12%
Desktop PC
Desktop PC NB PC 14% NB PC
14% 60%
61%
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NT$ 58,476 Million

NT$ 53,604 Million

Notes:

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

2. Desktop PC excludes displays.

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1. Display includes desktop monitor and projector.

2. Others include servers, android device, service, accessories, and subsidiaries.

8

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