Acer Incorporated · TWSE:2353
Acer — Q3 2009 Earnings Presentation
26 slides from Acer's earnings presentation, Oct 30, 2009
Slide 1: Acer Inc. Q3 2009 Investor Conference
Acer Inc. Q3, 2009 Investor Conference October 30, 2009 www.acer.com
Slide 2: Legal Disclaimer
Legal 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 acti
Slide 3: Consolidated Financial Results
Consolidated Financial Results Howard Chan CFO
Slide 4: Consolidated Income Statement (3rd Quarter)
Consolidated Income Statement (3rd Quarter) (R.O.C. GAAP-comparison base) (NT$ Million) 3Q’09 3Q’08 Change Revenue 167,617 100% 159,163 100% + 5% Gross Profit 16,722 10.0% 16,065 10.1% + 4% Operating Expenses 11,968 7.1% 11,415 7.2% + 5% Operating Income - GAAP 4,754 2.8% 4,650 2.9% + 2% Non-Operati
Slide 5: Consolidated Income Statement (Q1-Q3)
Consolidated Income Statement (Q1-Q3) (ROC GAAP-comparison base) 2009 2008 (NT$ Million) Change Q1-Q3 Q1-Q3 Revenue 405,786 100% 411,330 100% - 1% Gross Profit 41,206 10.2% 42,975 10.4% - 4% Operating Expenses 30,838 7.6% 32,877 8.0% - 6% Operating Income - GAAP 10,367 2.6% 10,097 2.4% + 3% Non-Oper
Slide 6: Consolidated Revenue and Gross Margin
Consolidated Revenue and Gross Margin 3Q, 2009 Revenue Growth: +5% Y/Y 175,000 15.0% 150,000 125,000 (NT$ Million) 10.0% 100,000 75,000 5.0% 50,000 25,000 0 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 2Q'09 3Q'09 0.0% Revenue 82,996 72,855 94,726 118,516 99,513 93,5
Slide 7: Consolidated Operating Income
Consolidated Operating Income 5,000 4.0% 4,000 3.0% (NT$ million) 3,000 2.0% 2,000 1.0% 1,000 0 0.0% 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 2Q'09 3Q'09 Op. Income 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 3,043 4,754 Op. Marg
Slide 8: Consolidated Balance Sheet (Y/Y Comparison)
Consolidated Balance Sheet (Y/Y Comparison) Consolidated (NT$ Million) Balance Sheet Sept. 30, 2009 Sept. 30, 2008 Current Assets Cash and cash equivalence 41,559 14% 28,232 10% Notes & Account receivable 127,813 42% 132,160 47% Financial Assets-Current 1,044 0% 4,490 2% Inventory 52,642 17% 44,602
Slide 9: Consolidated Balance Sheet (Q/Q Comparison)
Consolidated Balance Sheet (Q/Q Comparison) (NT$ Million) Sept. 30, 2009 June 30, 2009 Current Assets Cash and cash equivalence 41,559 14% 43,191 16% Notes & Account receivable 127,813 42% 98,992 37% Financial Assets-Current 1,044 0% 286 0% Inventory 52,642 17% 47,021 18% Others 19,508 6% 15,063 6%
Slide 10: Business Review
Business Review Gianfranco Lanci Acer Inc. CEO & President
Slide 11: PC Market out-look
PC Market out-look • PC demand strengthens as global economy recovers. Replacement activity increases. Demand remains price-sensitive, but buyers willing to pay for applications and features with demonstrated value-add • Desk-based PCs — Replacements gradually accelerate . Consumer interest continue
Slide 12: PC Market out-look
PC Market out-look • Majority of sales still go to consumer but Education and Small Business will continue to grow • PC ASP Declines to Decelerate as Units Recover and Dollar Subsides • Emerging Market well lead the growth again next year • Windows 7 reducing the perception gap with Mac OS. Positive
Slide 13: Revenue by Product
Revenue by Product Q3, 2009 Q3, 2008 US$4,968M US$4,982 M 3% 3% 9% 10% 15% 15% 73% 72% Notebook+Netbook Notebook+Netbook Desktop PC Desktop PC Display Display Others Others Note: Others include servers, projector and IA products 12
Slide 14: Revenue by Region
Revenue by Region Q2, 2009 Q2, 2008 Q3, 2009 Q3, 2008 US$3,522M US$4,045M US$4,968M US$4,982 M 2% 5% 2%3% 13% 13% 21% 59% 22% 61% 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)
Slide 15: IT Products Business Inventory Turnover Days (ADS)
10 20 30 40 3Q'03 12 4Q'03 19 13 1Q'04 2Q'04 15 3Q'04 12 15 4Q'04 1Q'05 2Q'05 14 3Q'05 18 19 4Q'05 22 1Q'06 2Q'06 32 3Q'06 14 30 4Q'06 19 1Q'07 17 2Q'07 23 IT Products Business 3Q'07 Inventory Turnover Days (ADS) 32 4Q'07 28 1Q'08 23 2Q'08 27 3Q'08 34 4Q'08 28 1Q'09 30 2Q'09 31 3Q'09 33 27
Slide 16: Operating Expenses as % of Total Revenue
Operating Expenses as % of Total Revenue IT Product Business 12.0% Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 8.75% 8.80% 8.07% 8.00% 7.72% 8.02% 8.23% 8.0% 7.65% 7.6% 7.75% 7.8% 7.4% 7.5% 7.61% 7.48% 7.2% 7.0% 7.4% 7.1% 6.6% 6.5% 6.58% 6.0% 0.0% Q1 Q2 Q3 Q4 15
Slide 17: From 2009 Acer Is Top Sponsor
FROM 2009 ACER IS TOP SPONSOR 2010 Olympic Winter Games in Vancouver and 2012 Olympic Games in London Acer Group is also IOC, NOCs, LOCOG preferred supplier 16
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Slide 20: Acer Business Status & Strategy
Acer Business Status & Strategy J.T. Wang Chairman & Acer Group CEO
Slide 21: Mobile PC growth, multi-brand strategy, Mobile PC #1 in 2010
1. Mobile PC has higher potential of growth 2. Multi-brand strategy is working well 3. Mobile PC #1 in 2010 20
Slide 22: Mobile PC Has Higher Potential of Growth
1. Mobile PC has higher potential of growth PC quantity forecast Year 2009 2014 Mobile PC 156M 372M Desktop PC 130M 143M Total PC 286M 515M Source: Gartner 2009 Data 21
Slide 23: Multi-brand strategy works effectively to gain market share
2. Multi-brand strategy works effectively to gain market share • Over 30% market share is no longer impossible • Multi-brand strategy does not cause promotion expenditure % to increase • Confidence to gain market share and profit simultaneously Source: Gartner 2009 Data 22
Slide 24: Acer Mobile PC market share / ranking
Acer Mobile PC market share / ranking 2008,Q2 2009,Q2 2008,Q2 2009,Q2 Worldwide 15.6% 20.1% 2 2 U.S.A. 9.4% 18.2% France 29.7% 34.5% 5 3 1 1 EMEA 22.3% 27.8% Germany 16.9% 22.2% 1 1 1 1 Taiwan 23.8% 33.3% Spain 32.0% 39.8% 2 1 1 1 Malaysia 31.3% 38.3% U.K. 16.8% 24.0% 1 1 3 1 Denmark 28.4% 46.1% Mex
Slide 25: Mobile PC #1 is achievable in 2010
3. Mobile PC #1 is achievable in 2010 • Worldwide netbook PC quantity will grow 40-50% in 2010. • Thin & Light 8+ hr notebook PC quantity will grow significantly. • Acer commercial notebook PC, netbook PC will be ready for the market booming. 24
Slide 26: Acer Inc. Q & A
Acer Inc. Investor Conference Q&A October 30, 2009 www.acer.com 25