ACER — Interim / Quarterly Report 2020

Mar 18, 2021

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2020 Fourth Quarter Earnings March 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 – 4Q 2020

(NT$ million)	4Q20	4Q20	3Q20	3Q20	QoQ Change	4Q19	4Q19	YoY Change
Revenue	82,619	100%	80,064	100%	3.2%	61,584	100%	34%
Realized Gross Profit	9,631	**11.7% **	8,400	10.5%	**15% **	6,347	10.3%	52%
OperatingExpenses	5,780	7.0%	5,638	7.0% 3.6%	2.5%	5,215	8.5%	10.8%
Operating Income	3,879	**4.7% **	2,911		33%	1,165	1.9%	233%
Non-OperatingIncome	(647)	-0.8%	336	0.4% 4.1%	N.A.	(549)	-0.9%	N.A.
Profit Before Tax	3,232	**3.9% **	3,247		**0% **	616	1.0%	424%
Profit After Tax	1,992	**2.4% **	2,285	2.9%	**-13% **	341	0.6%	484%
EPS(NT$)	0.67		0.76		**-12% **	0.11		509%

Note: Year-on-year revenue growth for the gaming line was up by 43.9%, for Chromebooks by 253.5%, for Thin and light notebooks by 165.9%, and for Monitors by 38.9%

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2

Statements of Comprehensive Income – 2020

	2020	2020	2019	2019	YoY
(NT$ million)					Change
Revenue	277,112	100.0%	234,285	100.0%	18.3%
Realized Gross Profit	30,120	10.9%	24,717	10.5%	21.9%
OperatingExpenses	21,413	7.7%	21,734	9.3%	-1.5%
Operating Income	8,936	3.2%	3,078	1.3%	190%
Non-OperatingIncome	(31)	0.0% 3.2%	634	0.3%	-
Profit Before Tax	8,905		3,712	1.6%	140%
Profit After Tax	6,029	2.2%	2,633	1.1%	129%
EPS(NT$)	2.01		0.87		131%

Note: Year-on-year revenue growth for the gaming line was up by 30.5%, for Chromebooks by 95.4%, for Thin and light notebooks by 62.3%, and for Monitors by 21.3%

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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
80.0
65.6
62.9 61.6
60.0 54.7 55.1
48.9
11.7%
40.0 10.6% 10.8% 10.6% 10.3% 10.1% 10.9% 10.5%
20.0
-
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
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4

Operating Income and Operating Margin Trend

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Operating Income
Unit: NT$ million Operating Income(LHS) Operating Margin
5,000 4.70%
4,500
3,879
4,000 3.64%
3.24%
3,500
2,911
3,000
2,500 2,127
1.89%
2,000
1.23%
1,500 1.01% 1.06% 1,165
775
1,000 554 584
0.04%
500
19
0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
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5

Consolidated Balance Sheet

(NT$million)	Dec-20	Dec-20	Sep-20	Sep-20		Dec-19	Dec-19
Cash and cash equivalents	39,181	21%	34,246	20%		24,184	15%
Notes & Accounts receivable	55,198	30%	58,361	34%		49,439	32%
Inventories	42,983	23%	37,698	22%		41,034	26%
Long-term Investment	7,118	4%	6,340	4%		6,092	4%
Property, plant and equipment	3,866	2%	3,504	2%		3,562	2%
Intangible asset	16,293	9%	16,528	10%		16,930	11%
Total Assets	183,909	100%	171,016	100%		156,097	100%
Short-term loan	1,047	1%	1,271	1%		1,515	1%
Notes & Accountspayable	49,406	27%	44,717	26%		35,224	23%
Total Current Liabilities	110,720	60%	101,873	60%		84,473	54%
Long-term loan	3,395	2%	3,397	2%		5,834	4%
Total Liabilities	121,967	66%	112,056	66%		96,901	62%
Total Shareholders' Equity*	61,942	34%	58,960	34%		59,195	38%

Notes:

1. Total outstanding common shares: 3,001,107,538 shares; Book value per share NT$ 20.09

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1. Total Shareholders' Equity includes Non-Controlling Interests

6

Revenue Breakdown by Geography

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Q4 2019 Q3 2020 Q4 2020
35%
32%
40% 35% 36% 34%
25% 32% 31%
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NT$ 61,584 Million

NT$ 80,064 Million

NT$ 82,619 Million

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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Q4 2019 Q3 2020 Q4 2020
16%
12% [12%] 11% [13%]
12%
12% 60% 11% 65% 9% 67%
NT$ 61,584 Million NT$ 80,064 Million NT$ 82,619 Million
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Others

Display

Desktop PC

Notebook

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

Revenue Breakdown by Geography

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2019
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2020
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33%
40%
27%
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36% 34%
30%
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NT$ 234,285 Million

NT$ 277,112 Million

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

9

Revenue Breakdown by Application

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2019
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2020
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15% 14%
13% 12%
60%
12% 10% 64%
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NT$ 234,285 Million

NT$ 277,112 Million

Others

Display

Desktop PC

Notebook

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.

10

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