Acer Inc. Q1, 2009 Investor Conference April 29, 2009 www.acer.com
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Consolidated Financial Results Howard Chan CFO
Consolidated Income Statement (1 st Quarter) (ROC GAAP-comparison base) (NT$ Million) 1Q 09 1Q 08 Change Revenue 119,086 100% 127,376 100% - 7% Gross Profit 11,918 10.0% 13,465 10.6% -11% Operating Expenses 9,348 7.8% 10,727 8.4% -13% Operating Income - GAAP 2,571 2.2% 2,738 2.2% - 6% Non-Operating Income 185 0.2% 565 0.4% PBT 2,755 2.4% 3,303 2.6% PAT 2,026 1.7% 2,952 2.3% EPS 0.78 1.21 Note: Figures in 1Q 09 are un-audited 3
Consolidated Revenue and Gross Margin 1Q, 2009 Revenue Growth: -7% Y/Y 175,000 15.0% 150,000 (NT$ Million) 125,000 100,000 75,000 50,000 10.0% 5.0% 25,000 0 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 0.0% Revenue 82,518 104,184 82,996 72,855 94,726 118,516 99,513 93,520 121,934 147,099127,376124,791 159,163134,944 119,086 Gross Margin 9.9% 10.3% 10.7% 10.7% 10.0% 10.8% 9.5% 10.6% 10.3% 10.3% 10.6% 10.8% 10.1% 10.6% 10.0% Revenue Growth 47% 47% 26% 11% 15% 14% 20% 28% 29% 24% 28% 33% 31% -8% -7% Note: The figures include Gateway since 4Q 07, Packard Bell since 1Q 08 and E-ten since 3Q 08 4
Consolidated Operating Income 5,000 4.0% 4,000 3.0% (NT$ million) 3,000 2,000 2.0% 1,000 1.0% 0 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 0.0% Op. Income 1,778 2,272 1,925 1,516 1,976 2,396 1,947 1,961 2,807 3,469 2,738 2,710 4,650 3,975 2,571 Op. Margin - % 2.2% 2.2% 2.3% 2.1% 2.1% 2.0% 2.0% 2.1% 2.3% 2.4% 2.2% 2.2% 2.9% 2.9% 2.2% Note: (a) The figures include Gateway since 4Q 07, Packard Bell since 1Q 08, and E-ten since 3Q 08 (b) The figures have expensed employee bonuses and board of directors remuneration since 2008. 5
Consolidated Balance Sheet (NT$ Million) Mar. 31, 2009 Current Assets Cash and cash equivalence 53,914 21% Notes & Account receivable 98,058 37% Financial Assets-Current 622 0% Inventory 33,622 13% Others 15,525 6% Total Current Assets 201,741 77% Dec. 31, 2008 22,142 108,713 1,969 40,028 13,539 186,391 9% 45% 1% 16% 6% 77% Long-term Investment Property, plant and equipment Intangible asset Others Total Asset 7,446 12,252 37,656 3,383 262,478 3% 5% 14% 1% 100% 6,774 12,333 34,747 3,197 243,442 3% 5% 14% 1% 100% Short-term borrowings Account payable 10,331 80,509 4% 31% 9,337 72,306 4% 30% Other current liabilities 73,848 28% 67,672 27% Current Liabilities Long-term Debt Total Liabilities Total Shareholders' Equity 164,688 4,119 176,236 86,242 6 63% 2% 67% 33% 149,315 4,135 160,565 82,878 61% 2% 66% 34%
Dividend Policy (NT$ per share) Year EPS Stock Cash 2005 3.83 0.2 3.0 2006 4.45 0.15 3.85 2007 5.48 0.15 3.60 2008 4.72 0.10 2.00
Business Review Gianfranco Lanci Acer Inc. CEO & President
Acer Brand Market Position (Q1 09 Preliminary)
WW TOTAL PC MARKET: TOP VENDORS #3 12.8% Market Share WW NOTEBOOK MARKET: TOP VENDORS #2 19.6% Market Share Gartner Q1 09 20% 16% 12% 8% 4% 0% 24% 20% 16% 12% 8% 4% 0% 2001 2002 2003 2004 2005 2006 2007 2008 Q1 2009 2001 2002 2003 2004 2005 2006 2007 2008 Q1 2009 10 Dell HP Acer Lenovo Toshiba HP Dell Acer Toshiba Lenovo
US PC MARKET: TOP VENDORS #3 13.6% Market Share US NOTEBOOK MARKET: TOP VENDORS #3 16.8% Market Share 32% 28% 24% 20% 16% 12% 8% 4% 0% 28% 24% 20% 16% 12% Q1 08 Q1 09 HP Dell Acer Apple Toshiba Q1 08 Q1 09 Gartner Q1 09 8% 4% 0% HP Dell Acer Toshiba Apple 11
EMEA PC MARKET: TOP VENDORS #2 19.1% Market Share 21% 18% 15% 12% 9% 6% 3% Q1 2008 Q1 2009 0% HP Acer Dell Toshiba ASUS EMEA NOTEBOOK MARKET: TOP VENDORS Gartner Q1 09 #1 26.6% Market Share 27% 24% 21% 18% 15% 12% 9% 6% 3% 0% Q1 2008 Q1 2009 Acer HP Toshiba Dell ASUS 12
ASIA PC MARKET: TOP VENDORS #4 7.3% Market Share 15% 12% 9% 6% 3% Q1 2008 Q1 2009 0% Lenovo HP Dell Acer ASUS ASIA NOTEBOOK MARKET: TOP VENDORS Gartner Q1 09 #3 13.9% Market Share 21% 18% 15% 12% 9% 6% 3% 0% HP Lenovo Acer ASUS Dell 13 Q1 2008 Q1 2009
LA PC MARKET: TOP VENDORS #3 7.6% Market Share 15% 12% 9% 6% 3% Q1 2008 Q1 2009 LA NOTEBOOK MARKET: TOP VENDORS Gartner Q1 09 #2 20.7% Market Share 0% 32% 28% 24% 20% 16% 12% 8% 4% 0% HP Dell Acer Positivo Lenovo Q1 2008 Q1 2009 HP Acer Dell Toshiba Positivo 14
IT Product Revenue Breakdown by Geography Q1, 2009 US$3,400M (NT$115,701 M) Q1, 2008 US$3,912M (NT$123,245 M) 2% 5% 2% 5% 14% 14% 49% 48% 30% 31% EMEA Pan America EMEA Pan America Asia Pacific Taiwan Asia Pacific Taiwan China China Note: (a) Asia Pacific excluding Greater China (Taiwan, HK, and Mainland China) (b) EMEA stands for Europe, Middle East and Africa 15
IT Product Revenue Breakdown (Netbook Combined) Q1, 2009 US$3,400M (NT$115,701 M) Q1, 2008 US$3,912M (NT$123,245 M) 12% 3% 17% 3% 17% 68% 17% 63% Notebook Desktop PC Display Others Notebook Desktop PC Display Others Note: Others include servers, projector and IA products 16
Inventory Turnover Days (ADS) 40 IT Products Business 34 32 32 30 30 30 31 28 28 27 20 10 19 19 17 12 15 13 15 12 14 18 19 22 19 17 23 23 1Q'03 2Q'03 3Q'03 4Q'03 1Q'04 2Q'04 3Q'04 4Q'04 1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 17
Operating Expenses as % of Total Revenue IT Product Business Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 8.80% 8.75% 8.0% 7.72% 7.65% 7.6% 7.2% 7.0% 8.00% 8.0% 7.61% 7.8% 8.07% 8.02% 8.23% 7.75% 7.4% 7.5% 7.48% 7.4% 6.58% 6.6% 0.0% Q1 Q2 Q3 Q4 18
How to Keep Acer s Growing Momentum J.T. Wang Chairman & Acer Group CEO
Two Strategic Approaches in My Mind 1. Multi-brand 2. Technology set of Aspire Timeline 20
Conclusion Continually growing quantity and gaining market share is highly possible in 2009. 21