ACER — Interim / Quarterly Report 2020

Oct 22, 2020

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2020 Second Quarter Earnings August 2020

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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 2020

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QoQ YoY
2Q20 1Q20 2Q19
(NT$ million) Change Change
Revenue 65,576 100% 48,855 100% 34% 55,127 100% 19%
Realized Gross Profit 7,138 10.9% 4,951 10.1% 44% 5,934 10.8% 20%
Operating Expenses 5,039 7.7% 4,956 10.1% 1.7% 5,370 9.7% -6.2%
Operating Income 2,127 3.2% 19 0.0% 11090% 584 1.1% 264%
Non-Operating Income (481) -0.7% 761 1.6% N.A. 22 0.0% N.A.
Profit Before Tax 1,646 2.5% 780 1.6% 111% 605 1.1% 172%
Profit After Tax 1,195 1.8% 558 1.1% 114% 409 0.7% 192%
EPS (NT$) 0.40 0.18 122% 0.13 208%
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2

Statements of Comprehensive Income – 6 Month 2020

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Six months ended Six months ended YoY
(NT$ million) Jun 30, 2020 Jun 30, 2019 Change
Revenue 114,430 100.0% 109,831 100.0% 4.2%
Realized Gross Profit 12,089 10.6% 11,706 10.7% 3.3%
Operating Expenses 9,995 8.7% 10,609 9.7% -5.8%
Operating Income 2,146 1.9% 1,138 1.0% 89%
Non-Operating Income 280 0.2% 393 0.4% -29%
Profit Before Tax 2,426 2.1% 1,531 1.4% 58%
Profit After Tax 1,753 1.5% 1,115 1.0% 57%
EPS (NT$) 0.58 0.37 57%
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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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80.0
65.3 65.6
63.7 62.9 61.6
60.0 54.7 55.1
48.9
40.0
10.6% 10.6% 10.6% 10.8% 10.6% 10.3% 10.1% 10.9%
20.0
-
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
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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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3.24%
2,500
2,127
1.79% 1.89%
1.71%
2,000
1.23%
1.01% 1.06%
1,500
0.04%
1,170 1,165
1,091
1,000 775
554 584
500
19
0
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
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5

Consolidated Balance Sheet

(NT$million)	Jun-20	Jun-20	Mar-20	Mar-20	Jul-19	Jul-19
Cash and cash equivalents	33,719	21%	28,209	20%	27,482	17%
Notes & Accounts receivable	50,445	31%	39,612	28%	47,285	29%
Inventories	36,064	22%	34,090	24%	45,815	28%
Long-term Investment	6,360	4%	5,318	4%	5,603	3%
Property, plant and equipment	3,496	2%	3,498	2%	3,713	2%
Intangible asset	16,704	10%	16,964	12%	17,467	11%
Total Assets	160,848	100%	142,669	100%	161,540 527	100%
Short-term loan	1,232	1%	6,482	5%		0%
Notes & Accountspayable	39,323	24%	23,732	17%	39,637	25%
Total Current Liabilities	93,641	58%	76,082	53%	90,626	56%
Long-term loan	3,389	2%	3,343	2%	5,814	4%
Total Liabilities	103,842	65%	86,241	60%	102,769 58,771	64%
Total Shareholders' Equity*	57,006	35%	56,428	40%		36%

Notes:

1. Total outstanding common shares: 3,001,107,538 shares; Book value per share NT$ 18.55

2. Total Shareholders' Equity includes Non-Controlling Interests

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6

Revenue Breakdown by Geography

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Q2 2019 Q1 2020 Q2 2020
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30% 31% 37%
39% 34%
40%
31% 29% 29%
NT$ 55,127 Million NT$ 48,855Million NT$ 65,576 Million
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Pan Asia Pacific Pan America EMEA

Notes:

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

2. EMEA includes Europe, Middle East and Africa

7

Revenue Breakdown by Application

Q2 2019 Q1 2020 Q2 2020

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14% 18%
13% 12% [13%]
13%
13% 60% 58% 11% 64%
11%
NT$ 55,127 Million NT$ 48,855 Million NT$ 65,576 Million
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Others

Display

Desktop PC

Notebook

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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