ACER — Interim / Quarterly Report 2021

Nov 8, 2021

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2021 Third Quarter Earnings November 2021

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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 – 3Q 2021

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QoQ YoY
3Q21 2Q21 3Q20
(NT$ million) Change Change
Revenue 81,142 100% 79,778 100% 1.7% 80,064 100% 1.3%
Realized Gross Profit 9,368 11.5% 9,588 12.0% -2.3% 8,400 10.5% 12%
Operating Expenses 5,928 7.3% 5,639 7.1% 5.1% 5,638 7.0% 5.1%
Operating Income 3,467 4.3% 3,979 5.0% -13% 2,911 3.6% 19%
Non-Operating Income 697 0.9% 52 0.1% 1251% 336 0.4% 107%
Profit Before Tax 4,164 5.1% 4,031 5.1% 3% 3,247 4.1% 28%
Profit After Tax 3,018 3.7% 2,897 3.6% 4% 2,285 2.9% 32%
EPS (NT$) 1.01 0.97 4% 0.76 33%
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2

Statements of Comprehensive Income – 9M 2021

Acer (2353-TW) (NT$ million)	Nine months ended Sep 30, 2021	Nine months ended Sep 30, 2021	Nine months ended Sep 30, 2020	Nine months ended Sep 30, 2020	YoY Change
Revenue	232,475	100.0%	194,494	100.0%	19.5%
Realized Gross Profit	27,268	11.7%	20,489	10.5%	33.1%
OperatingExpenses	17,102	7.4% 4.4%	15,632	8.0%	9.4%
Operating Income	10,252		5,057	2.6%	103%
Non-OperatingIncome	1,718	0.7%	617	0.3%	179%
Profit Before Tax	11,970	5.1%	5,673	2.9%	111%
Profit After Tax	8,657	3.7%	4,037	2.1%	114%
EPS(NT$)	2.88		1.34		115%

Note:

[1] Acer’s gaming line includes desktops, notebooks, and monitors.

[2] Year-to-September revenue growth for the Gaming line[[1] ] revenue grew by 29.7% YoY; Chromebook revenue grew by 42.7% YoY; Commercial notebook revenue grew by 44.7% YoY.

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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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100.0
80.1 82.6 79.8 81.1
80.0
71.6
65.6 12.0%
61.6 11.7% 11.6%
11.5%
60.0
48.9 10.9%
10.5%
10.3%
10.1%
40.0
20.0
-
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
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4

Operating Income and Operating Margin Trend

Operating Income Unit: NT$ million

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4,500
3,979
3,879
4,000
3,467
3,500 4.99%
4.70%
3,000 2,911 2,806 4.27%
2,500
2,127 3.92%
2,000 3.64%
3.24%
1,500
1,165
1,000 1.89%
500
19
0.04%
0
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
Operating Income(LHS) Operating Margin
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5

Consolidated Balance Sheet

(NT$million)	Sep-21	Sep-21	Jun-21	Jun-21	Sep-20	Sep-20
Cash and cash equivalents	33,107	17%	30,327	15%	34,246	20%
Notes & Accounts receivable	58,190	29%	58,313	30%	58,361	34%
Inventories	58,444	30%	58,711	30%	37,698	22%
Long-term Investment	7,755	4%	8,604	4%	6,340	4%
Property, plant and equipment	4,045	2%	4,021	2%	3,504	2%
Intangible asset	16,424	8%	16,426	8%	16,528	10%
Total Assets	197,297	100%	196,023	100%	171,016 1,271	100%
Short-term loan	1,308	1%	1,389	1%		1%
Notes & Accountspayable	46,353	23%	48,768	25%	44,717	26%
Total Current Liabilities	115,686	59%	120,927	62%	101,873	60%
Long-term loan3	10,079	5%	5,109	3%	3,397	2%
Total Liabilities	133,643	68%	134,017	68%	112,056 58,960	66%
Total Shareholders' Equity2	63,654	32%	62,006	32%		34%

Notes:

1. Total outstanding common shares: 3,001,107,538 shares; Book value per share NT$20.49.

2. Total Shareholders' Equity includes Non-Controlling Interests

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1. Acer issued two five-year unsecured corporate bonds of NT$5 billion: the 1[st] one with coupon rate 0.76% in Apr 2021 and the 2[nd] one with coupon rate 0.62% in Aug 2021.

6

Revenue Breakdown by Geography

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Q3 2020
36% 32%
32%
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Q2 2021 Q3 2021
31%
34%
37% 42%
27%
29%
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NT$ 80,064 Million
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NT$ 79,778 Million

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NT$ 81,142 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

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Q3 2020 Q2 2021 Q3 2021
15% 17%
12% [12%]
11% 10%
11%
65% 9% 65% 10% 63%
NT$ 80,064 Million NT$ 79,778 Million NT$ 81,142 Million
Others Display Desktop PC Notebook
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Notes:

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

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1. Desktop PC excludes displays.

2. Display includes desktop monitor and projector.

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

8

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