ACER — Interim / Quarterly Report 2020

Jan 5, 2021

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2020 Third Quarter Earnings November 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 – 3Q 2020

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QoQ YoY
3Q20 2Q20 3Q19
(NT$ million) Change Change
Revenue 80,064 100% 65,576 100% 22% 62,870 100% 27%
Realized Gross Profit 8,400 10.5% 7,138 10.9% 18% 6,663 10.6% 26%
Operating Expenses 5,638 7.0% 5,039 7.7% 11.9% 5,910 9.4% -4.6%
Operating Income 2,911 3.6% 2,127 3.2% 37% 775 1.2% 276%
Non-Operating Income 336 0.4% (481) -0.7% N.A. 790 1.3% -57%
Profit Before Tax 3,247 4.1% 1,646 2.5% 97% 1,565 2.5% 108%
Profit After Tax 2,285 2.9% 1,195 1.8% 91% 1,176 1.9% 94%
EPS (NT$) 0.76 0.40 90% 0.39 95%
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Note: Year-on-year revenue growth for the gaming line was up by 69.9%, for Chromebooks by 94.4%, and for commercial notebooks by 86.6%

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2

Statements of Comprehensive Income – 9 Month 2020

Acer (2353-TW) (NT$ million)	Sep 30, 2020 Nine months ended	Sep 30, 2020 Nine months ended		Sep 30, 2019 Nine months ended	Sep 30, 2019 Nine months ended	YoY Change
Revenue	194,494	100.0%		172,701	100.0%	12.6%
Realized Gross Profit	20,489	10.5%		18,370	10.6%	11.5%
OperatingExpenses	15,632	8.0%		16,519	9.6%	-5.4%
Operating Income	5,057	2.6%		1,913	1.1%	164%
Non-OperatingIncome	617	0.3%		1,183	0.7%	-48%
Profit Before Tax	5,673	2.9%		3,096	1.8%	83%
Profit After Tax	4,037	2.1%		2,292	1.3%	76%
EPS(NT$)	1.34			0.76		76%

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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
80.0
65.6
63.7 62.9 61.6
60.0 54.7 55.1
48.9
40.0 10.6% 10.6% 10.8% 10.6% 10.3% 10.1% 10.9% 10.5%
20.0
-
4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
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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
3.64%
3,500
3.24%
2,911
3,000
1.89%
1.71%
2,500
1.01% 1.06% 1.23% 2,127
2,000
0.04%
1,500
1,165
1,091
1,000 775
554 584
500
19
0
4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
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5

Consolidated Balance Sheet

(NT$million)	Sep-20	Sep-20	Jun-20	Jun-20	Sep-19	Sep-19
Cash and cash equivalents	34,246	20%	33,719	21%	27,933	17%
Notes & Accounts receivable	58,361	34%	50,445	31%	49,560	30%
Inventories	37,698	22%	36,064	22%	44,158	27%
Long-term Investment	6,340	4%	6,360	4%	5,850	4%
Property, plant and equipment	3,504	2%	3,496	2%	3,625	2%
Intangible asset	16,528	10%	16,704	10%	17,325	11%
Total Assets	171,016	100%	160,848	100%	163,419 1,113	100%
Short-term loan	1,271	1%	1,232	1%		1%
Notes & Accounts payable	44,717	26%	39,323	24%	39,678	24%
Total Current Liabilities	101,873	60%	93,641	58%	91,816	56%
Long-term loan	3,397	2%	3,389	2%	5,812	4%
Total Liabilities	112,056	66%	103,842	65%	104,128 59,291	64%
Total Shareholders' Equity*	58,960	34%	57,006	35%		36%

Notes:

1. Total outstanding common shares: 3,001,107,538 shares; Book value per share NT$ 19.16

2. Total Shareholders' Equity includes Non-Controlling Interests

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6

Revenue Breakdown by Geography

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Q3 2019 Q2 2020 Q3 2020
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37% 32%
41% 34% 34% 36%
25% 29% 32%
NT$ 62,870 Million NT$ 65,576 Million NT$ 80,064 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 2019 Q2 2020 Q3 2020
14%
12% 12% [13%] 12% [12%]
12% 62% 11% 64% 11% 65%
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NT$ 62,870 Million

NT$ 65,576 Million

NT$ 80,064 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.

8

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