ACER — Interim / Quarterly Report 2018

May 22, 2018

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2018 First Quarter Earnings

May 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 – 1Q 2018

(NT$ million)	1Q18	1Q18	4Q17	4Q17	QoQ Change	1Q17	1Q17	YoY Change
Revenue	54,804	**100% **	67,039	100%	-18.3%	56,052	100%	-2.2%
Realized Gross Profit	5,758	**10.5% **	7,148	10.7%	**-19.4% **	5,425	9.7%	6.1%
OperatingExpenses	5,232	9.5%	5,912	8.8%	-11.5%	4,997	8.9%	4.7%
Operating Income	547	**1.0% **	1,290	1.9%	**-57.6% **	456	0.8%	20%
Non-OperatingIncome	477	0.9%	111	0.2%	329.7%	(513)	-0.9%	N.A.
Profit Before Tax	1,024	**1.9% **	1,401	2.1%	**-27% **	(57)	-0.1%	N.A.
Profit After Tax	708	**1.3% **	1,060	1.6%	**-33% **	63	0.1%	1030%
EPS(NT$)	0.23		0.35			0.02

Note: Realized Gross Profit includes warranty

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2

Net Sales and Gross Margin Trend

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Net Sales Net Sales Gross Margin
Unit: NT$ billion
80.0
67.0
61.7 60.6
58.6
60.0 56.2 56.1 53.6 54.8
40.0
11.4% 11.1% 10.7% 10.5%
9.6% 9.5% 9.7%
9.0%
20.0
-
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
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Net Sales Unit: NT$ billion

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Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend	Operating Income and Operating Margin Trend
Operating Income Unit: NT$ million	Operating		Income		Operating	Margin
-0.50% 1,400 1,800	0.80%	0.22%	0.81%		1.85%	1.54%	1,290 1.92%	1.00%
(200) 200 600 1,000	471	133	456		992	933		547
(279)
(600)
2Q16	3Q16	4Q16	1Q17		2Q17	3Q17	4Q17	1Q18

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4

Consolidated Balance Sheet

(NT$million)	Mar-18	Mar-18	Dec-17	Dec-17	Mar-17	Mar-17
Cash and cash equivalents	29,382	20%	33,970	22%	28,781	20%
Notes & Accounts receivable	40,759	28%	46,888	30%	39,026	27%
Inventories	39,653	27%	40,079	25%	41,792	29%
Long-term Investment	6,126	4%	6,130	4%	5,433	4%
Property, plant and equipment	4,063	3%	4,107	3%	4,182	3%
Intangible asset	16,847	11%	17,184	11%	17,500	12%
Total Assets	146,804	100%	157,613	100%	146,014 4,878	100%
Short-term loan	1,994	1%	3,185	2%		3%
Notes & Accountspayable	35,768	24%	42,751	27%	33,820	23%
Total Current Liabilities	82,072	56%	93,240	59%	83,275	57%
Long-term loan	3,300	2%	3,300	2%	5,100	3%
Total Liabilities	88,673	60%	99,637	63%	91,011 55,003	62%
Total Shareholders' Equity*	58,131	40%	57,975	37%		38%

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

5

Quarterly Revenue Breakdown by Geography

Q1 2018

Q1 2017

EMEA Pan America Pan Asia Pacific

EMEA Pan America Pan Asia Pacific

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Pan Asia EMEA
Pacific 35%
41%
Pan
America
24%
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Pan Asia
Pacific EMEA
37% 40%
Pan
America
23%
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NT$ 54,804 Million

NT$ 56,052 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

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Q1 2018 Q1 2017
NB PC Desktop PC Display Others NB PC Desktop PC Display Others
Others
13%
Others
14% Display
Display
12%
13%
Desktop PC
NB PC 14%
Desktop PC NB PC
59%
14% 61%
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NT$ 54,804 Million

NT$ 56,052 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.

7

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