ACER — Interim / Quarterly Report 2021

Sep 6, 2021

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2021 Second Quarter Earnings August 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 –2Q 2021

(NT$ million)	2Q21	2Q21	1Q21	1Q21	QoQ Change	2Q20	2Q20	YoY Change
Revenue	79,778	100%	71,555	100%	11%	65,576	100%	22%
Realized Gross Profit	9,588	**12.0% **	8,312	11.6%	**15% **	7,138	10.9%	34%
OperatingExpenses	5,639	7.1%	5,535	7.7%	1.9%	5,039	7.7%	11.9%
Operating Income	3,979	**5.0% **	2,806	3.9%	42%	2,127	3.2%	87%
Non-OperatingIncome	52	0.1%	969	1.4%	-95%	(481)	-0.7%	-
Profit Before Tax	4,031	**5.1% **	3,776	5.3%	7%	1,646	2.5%	145%
Profit After Tax	2,897	**3.6% **	2,743	3.8%	6%	1,195	1.8%	142%
EPS(NT$)	0.97		0.91		**7% **	0.40		143%

Note:

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

[2] Year-on-year revenue growth for the gaming line[[1] ] grew by 35.7% YoY, and Chromebooks that grew by 41.8% YoY.

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2

Statements of Comprehensive Income –1H 2021

Acer (2353-TW) (NT$ million)	Six months ended Jun 30, 2021	Six months ended Jun 30, 2021	Six months ended Jun 30, 2020	Six months ended Jun 30, 2020	YoY Change
Revenue	151,334	100.0%	114,430	100.0%	32.2%
Realized Gross Profit	17,900	11.8%	12,089	10.6%	48.1%
OperatingExpenses	11,174	7.4%	9,995	8.7%	11.8%
Operating Income	6,785	4.5%	2,146	1.9%	216%
Non-OperatingIncome	1,021	0.7%	280	0.2%	264%
Profit Before Tax	7,806	5.2%	2,426	2.1%	222%
Profit After Tax	5,640	3.7%	1,753	1.5%	222%
EPS(NT$)	1.88		0.58		224%

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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
82.6
80.1 79.8
80.0
71.6
65.6 12.0%
62.9 61.6 11.7% 11.6%
60.0
48.9 10.9%
10.6%
10.5%
10.3%
10.1%
40.0
20.0
-
3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
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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
3,500 4.99%
4.70%
2,911
3,000 2,806
3.64%
2,500
2,127 3.92%
2,000
3.24%
1,500
1,165
1,000 775
1.89%
500 1.23% 0.04%
19
0
3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Operating Income(LHS) Operating Margin
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5

Consolidated Balance Sheet

(NT$million)	Jun-21	Jun-21	Mar-21	Mar-21	Jun-20	Jun-20
Cash and cash equivalents	30,327	15%	34,103	19%	33,719	21%
Notes & Accounts receivable	58,313	30%	51,060	28%	50,445	31%
Inventories	58,711	30%	50,444	27%	36,064	22%
Long-term Investment	8,604	4%	7,864	4%	6,360	4%
Property, plant and equipment	4,021	2%	3,874	2%	3,496	2%
Intangible asset	16,426	8%	16,278	9%	16,704	10%
Total Assets	196,023	100%	183,522	100%	160,848 1,232	100%
Short-term loan	1,389	1%	524	0%		1%
Notes & Accountspayable	48,768	25%	44,526	24%	39,323	24%
Total Current Liabilities	120,927	62%	111,654	61%	93,641	58%
Long-term loan3	5,109	3%	3,417	2%	3,389	2%
Total Liabilities	134,017	68%	123,027	67%	103,842 57,006	65%
Total Shareholders' Equity2	62,006	32%	60,495	33%		35%

Notes:

1. Total outstanding common shares: 3,001,107,538 shares; Book value per share NT$ 19.97.

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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Q2 2020
34%
37%
29%
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Q1 2021 Q2 2021
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35% 34%
37% 37%
28% 29%
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NT$ 65,576 Million
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NT$ 71,555 Million
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NT$ 79,778 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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Q2 2020 Q1 2021 Q2 2021
14% 14% 15%
12% 11% 11%
11% 63% 9% 66% 9% 65%
NT$ 65,576 Million NT$ 71,555 Million NT$ 79,778 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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