ACER — Interim / Quarterly Report 2023

Nov 3, 2023

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2023 Third Quarter Earnings November 2023

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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 2023

(NT$ million)	3Q23	3Q23	2Q23	2Q23	QoQ Change	3Q22	3Q22	YoY Change
Revenue	**67,445 **	**100% **	58,261	100%	**15.8% **	64,887	100%	3.9%
Gross Profit	**7,294 **	**10.8% **	6,255	10.7%	**16.6% **	**6,561 **	10.1%	11.2%
OperatingExpenses	5,768	8.6%	5,221	9.0%	10.5%	5,742	8.8%	0.5%
Operating Income	1,546	**2.3% **	1,046	1.8%	**47.8% **	829	1.3%	86.6%
Non-OperatingIncome	1,431	2.1%	1,174	2.0%	21.8%	1,873	2.9%	-23.6%
Profit Before Tax	2,977	**4.4% **	2,220	3.8%	**34.1% **	2,702	4.2%	10.2%
Profit After Tax	2,008	**3.0% **	1,392	2.4%	**44.2% **	1,876	2.9%	7.0%
EPS(NT$)	0.67		0.46			0.63

Note: All segments of the company's PC business recorded a sequential growth in 3Q 2023. The notebook increased by 19.4%, the desktop rose by 27.8%. The Vero segment, which provides eco-friendly products, had a 28.2% growth. The gaming segment, which comprises laptops, desktops, monitors, and the group subsidiaries business, registered the growth of 29.7%.

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Statements of Comprehensive Income – 9M 2023

Acer (2353-TW) (NT$ million)	Nine months ended Sep 30, 2023	Nine months ended Sep 30, 2023	Nine months ended Sep 30, 2022	Nine months ended Sep 30, 2022	YoY Change
Revenue	178,163	100%	215,587	100%	-17%
Realized Gross Profit	18,912	10.6%	23,416	10.9%	-19%
OperatingExpenses	16,128	9.1%	17,628	8.2%	-8.5%
Operating Income	2,831	1.6%	5,917	2.7%	-52%
Non-OperatingIncome	3,309	1.9%	2,426	1.1%	36%
Profit Before Tax	6,140	3.4%	8,343	3.9%	-26%
Profit After Tax	3,915	2.2%	5,835	2.7%	-33%
EPS(NT$)	1.30		1.94

Notes: The company earned net NT$ 1,113 million from interest income in the first nine month, 2023 and NT$ 139 million in the same period last year.

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Net Sales and Gross Margin Trend

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Net Sales Net Sales(LHS) Gross Margin
Unit: NT$ billion
100.0
86.5
78.4
80.0 72.3
67.4
64.9
59.8 58.3
60.0 52.5
11.5%
11.3%
11.1%
10.7% 10.8%
10.6%
40.0 10.1% 10.2%
20.0
-
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23
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4

Operating Income and Operating Margin Trend

Operating Income Unit: NT$ million

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4,500
3,911
4,000
3,500
3,000 4.52% 2,914
2,500 3.72% 2,174
2,000 3.01%
1,546
1,500
1,011 1,046 2.29%
1,000 829
1.69% 1.80%
1.28%
500 239
0.45%
0
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23
Operating Income(LHS) Operating Margin
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Consolidated Balance Sheet

(NT$million)	Sep-23	Sep-23	Jun-23		Sep-22	Sep-22
Cash and cash equivalents	52,412	24%	47,951	23%	31,310	15%
Notes & Accounts receivable	58,279	27%	55,734	27%	65,222	32%
Inventories	45,022	21%	43,003	21%	58,131	28%
Long-term Investment	17,339	8%	16,902	8%	9,032	4%
Property, plant and equipment	4,438	2%	4,365	2%	4,191	2%
Intangible asset	19,433	9%	18,895	9%	18,274	9%
Total Assets	218,464	100%	206,949	100%	204,621 3,440	100%
Short-term loan	971	0%	1,195	1%		2%
Notes & Accounts payable	47,927	22%	39,876	19%	37,779	18%
Total Current Liabilities	117,137	54%	112,550	54%	115,009	56%
Long-term loan	11,579	5%	10,082	5%	10,105	5%
Total Liabilities	137,815	63%	131,699	64%	134,315 70,306	66%
Total Shareholders' Equity2	80,649	37%	75,250	36%		34%

Notes:

1. Total outstanding common shares: 3,001,107,538 shares; Book value per share NT$25.13.

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1. Total Shareholders' Equity includes Non-Controlling Interests

6

Revenue Breakdown by Geography

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Q3 2022 Q2 2023 Q3 2023
24.0% 24.6% 25.7%
50.5% 48.4% 48.7%
25.5%
27.0% 25.6%
NT$ 64,887 Million NT$ 58,261 Million NT$ 67,445 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

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Revenue Breakdown by Application

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Q3 2022 Q2 2023 Q3 2023
23.0% 28.6% 24.2%
10.4% 54.3% 52.6% 9.1% 56.0%
9.3%
12.3% 10.7%
9.5%
NT$ 64,887 Million NT$ 58,261 Million NT$ 67,445 Million
Note:
Others Display Desktop PC Notebook
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Notes:

1. Desktop PC excludes displays.

2. Display includes desktop monitor and projector.

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1. Others include 11 public subsidiaries and businesses under incubation. Please refer to Acer English annual report for the year 2022 pages 138-154.

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