ACER — Interim / Quarterly Report 2018

Apr 15, 2019

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2018 Fourth Quarter Earnings

March 2019

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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 – 4Q 2018

(NT$ million)	4Q18	4Q18	3Q18	3Q18	QoQ Change	4Q17	4Q17	YoY Change
Revenue	63,665	**100% **	65,326	100%	-2.5%	67,039	100%	-5.0%
Realized Gross Profit	**6,745 **	**10.6% **	**6,893 **	10.6%	**-2.2% **	**7,148 **	10.7%	-5.6%
OperatingExpenses	5,693	8.9%	5,807	8.9%	-2.0%	5,912	8.8%	-3.7%
Operating Income	1,091	**1.7% **	1,170	1.8%	**-6.7% **	1,290	**1.9% **	-15.4%
Non-OperatingIncome	(236)	-0.4%	17	0.0%	-	111	0.2%	-
Profit Before Tax	855	**1.3% **	1,187	1.8%	**-28% **	1,401	2.1%	-39%
Profit After Tax	560	**0.9% **	912	**1.4% **	**-38.6% **	1,060	1.6%	-47%
EPS(NT$)	0.18		0.30			0.35

Note: Realized Gross Profit includes warranty

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2

Statements of Comprehensive Income –2018

	2018	2018	2017	2017	YoY
(NT$ million)					Change
Revenue	242,270	100.0%	**237,275 **	100.0%	2.1%
Realized Gross Profit	25,828	10.7%	25,361	10.7%	1.8%
OperatingExpenses	22,257	9.2%	21,900	9.2%	1.6%
Operating Income	3,738	1.5%	3,670	1.5%	1.9%
Non-OperatingIncome	514	0.2%	(231)	-0.1%	N.A.
Profit Before Tax	4,252	1.8%	3,439	1.4%	24%
Profit After Tax	3,060	1.3%	2,816	1.2%	9%
EPS(NT$)	1.01		0.93

Note:

1. Realized Gross Profit includes warranty

2. Taiwan corporate income tax rate increases from 17% to 20% effective from January 1 2018.

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3

Net Sales and Gross Margin Trend

Net Sales Unit: NT$ billion

Net Sales(LHS) Gross Margin

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80
67.0
65.3
63.7
60.6
58.5
60 56.1 53.6 54.8
40
11.4% 11.1% 10.7% 10.5% 11.0% 10.6% 10.6%
9.7%
20
0
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
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4

Operating Income and Operating Margin Trend

Operating Income Unit: NT$ million Operating Income(LHS) Operating Margin

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1,600 1.8% 1.5% 1.9% 1.6% 1.8% 1.7%
0.8% 1.0%
1,290
1,170
1,200 1,091
992
933 930
800
547
456
400
0
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
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5

Consolidated Balance Sheet

(NT$million)	Dec-18	Dec-18	Sep-18	Sep-18	Dec-17	Dec-17
Cash and cash equivalents	27,283	18%	30,416	19%	33,970	22%
Notes & Accounts receivable	47,526	31%	47,252	30%	46,888	30%
Inventories	42,076	27%	43,109	27%	40,079	25%
Long-term Investment	5,261	3%	5,487	3%	6,130	4%
Property, plant and equipment	3,847	2%	3,960	3%	4,107	3%
Intangible asset	17,311	11%	17,305	11%	17,184	11%
Total Assets	153,989	100%	157,827	100%	157,613 3,185	100%
Short-term loan	661	0%	3,582	2%		2%
Notes & Accountspayable	40,079	26%	44,354	28%	42,751	27%
Total Current Liabilities	86,817	56%	95,795	61%	93,240	59%
Long-term loan	3,316	2%	17	0%	3,300	2%
Total Liabilities	95,003	62%	99,204	63%	99,637 57,975	63%
Total Shareholders' Equity*	58,986	38%	58,623	37%		37%

Notes:

1. Total outstanding common shares: 3,028,181,538 shares; Book value per share NT$ 19.24

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1. Total Shareholders' Equity includes Non-Controlling Interests

6

Revenue Breakdown by Geography

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4Q 2018 3Q 2018
36%
38% 35%
37%
27% 27%
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3Q 2018 4Q 2017
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35% 36%
29%
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NT$ 63,665 Million

NT$ 65,326 Million

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NT$ 67,039 Million
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Pan Asia Pacific Pan America EMEA

Notes:

1. Pan Asia Pacific includes Asia Pacific, Japan, Taiwan, Hong Kong, and Mainland China.

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1. EMEA includes Europe, Middle East and Africa

Revenue Breakdown by Geography

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2018 2017
38% 35% 36% 37%
27% 27%
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NT$ 242.3 Billion

NT$ 237.3 Billion

Pan Asia Pacific Pan America EMEA

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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8

Revenue Breakdown by Application

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4Q 2018 3Q 2018 4Q 2017
14% 12% [12%] 11% [13%]
12%
60% 14% 62% 13% 63%
14%
NT$ 63,665 Million NT$ 65,326 Million NT$ 67,039 Million
Others Display Desktop PC Notebook
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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.

Revenue Breakdown by Application

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2018 2017
13% 13%
13% 12%
13%
14% 60%
62%
NT$ 242.3 Billion NT$ 237.3 Billion
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Notes:

Others

Display

Desktop PC

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

2. Desktop PC excludes displays.

3. Display includes desktop monitor and projector.

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

10

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