Acer Incorporated · TWSE:2353
Acer — Merger or Acquisition (August 2007)
15 slides from Acer's merger presentation, Aug 27, 2007
Slide 1: Investor Update: Strategic Transactions
Investor Update: Strategic Transactions August 27, 2007
Slide 2: Legal Disclaimer
Legal Disclaimer This document is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities. The solicitation and the offer to buy shares of gateway’s common stock will only be made pursuant to an offer to purchase and related materials that Ac
Slide 3: Presenters
Presenters J.T. Wang Chairman & CEO Gianfranco Lanci President Ed Coleman Chief Executive Officer 2
Slide 4: Transaction Overview
Transaction Overview • Acer and Gateway announced a definitive agreement for Acer to acquire 100% of outstanding Transaction shares of Gateway Description – Acer will launch a tender offer for Gateway’s shares • Cash consideration of US$1.90 per share, representing a total equity consideration of Co
Slide 5: Gateway is a Leading US Provider of PCs
Gateway is a Leading US Provider of PCs Gateway Strengths Financial Summary Fiscal Year Ending December 31, • Powerful, Differentiated U.S. Brands 2004 2005 2006 – Leading aided brand recognition Revenues $3,649.7 $3,854.1 $3,980.8 Growth % 7.3% 5.6% 3.3% – Includes successful eMachines brand Gross
Slide 6: Creates a Global PC Leader
Creates a Global PC Leader X Creates a $15+ billion multi-branded PC company X Will ship in excess of 20 million PC units per year #3 Largest PC Company Strong Position in All & #2 in Notebooks Markets - US, Europe Globally and Asia Portfolio of Strong, User Centric Orientation Highly Recognizable B
Slide 7: Strategic Rationale
Strategic Rationale Increases Scale and Solidifies Position as 3rd Largest PC Company in the World Establishes Foundation for a Multiple-Brand Strategy Completes Global Footprint with US Market Share and Strong Gateway Brand Potential for Significant Synergies Note: If Gateway successfully acquires
Slide 8: Solidifies Position as the #3 Largest PC Company
Solidifies Position as the #3 Largest PC Company The transaction will solidify Acer’s #3 position in the global PC market, further enhances our market position. Worldwide PC Market Share(1) 18.0% 14.8% 8.8% 7.9% 7.1% 3.9% PC Unit Growth(2) 36.9% (5.5%) 36.1% 22.3% 54.2% 25.7% Worldwide NB 20.9% 14.6
Slide 9: Increase in Overall Scale
Increase in Overall Scale (2006 Shipments in 000s) + 18,995 13,992 Total PC Shipments + 5,004 = 7,369 4,103 Total 3,265 Desktop Shipments + = 11,627 9,889 Total Notebook Shipments + 1,738 = Note: Market share data based on Worldwide Full Year 2006 results. Source: Gartner 2006. 8
Slide 10: Completes Global Footprint With US Market Share
Completes Global Footprint With US Market Share EMEA % Total Asia Pacific USA Desktop 5.7% 0.3% 6.0% % Total % Total Notebook 20.3 0.1 20.4 Desktop 3.0% -- 3.0% Desktop 2.9% 6.8% 9.7% PC 11.7 0.2 11.9 Notebook 13.1 -- 13.1 Notebook 9.2 6.0 15.2 PC 5.6 -- 5.6 PC 5.6 6.1 11.7 Note: Data for Q2 2007. D
Slide 11: Multi-Brand Strategy Positions Acer for the Future
Multi-Brand Strategy Positions Acer for the Future PC Market 1997 PC Market 2007 Worldwide PC Shipments: 84 million Worldwide PC Shipments: 257million Laptop UMPC Professional Tablet Consumer Consumer Digital Home Professional Gaming Desktop Common Backend (Supply Chain, COGS, Administration, etc.)
Slide 12: US Retail PC Market
US Retail PC Market US Retail PC Market Share 50% 40% 40 30 23% 20 17% 16% 14% 10 6% 5% 0 HPQ Acer + Gateway Toshiba Apple Sony Acer Gateway US Retail Monitor Market Share 25% 23% 22% 20 16% 15 11% 10 9% 6% 5 0 Acer + Gateway HPQ Gateway Samsung Viewsonic Acer Source: NPD; Data excludes Costco and W
Slide 13: Potential Synergies
Potential Synergies • Revenue Synergies: – Opportunities for cross-selling, by leveraging retail relationships of both Gateway and Acer – Multiple-brand strategy, resulting in targeted product lines addressing specific consumer segments, resulting in sales growth – Leveraging Gateway monitor technol
Slide 14: Pro Forma Revenues by Geography
Pro Forma Revenues by Geography Over $15 billion of combined company revenues, diversified across target markets. + Int'l Asia North 8% 18% America North 25% America Europe 43% 52% Asia North 23% Europe America 39% 92% Revenue: $11.24bn Revenue: $3.98bn Revenue: $15.22bn Note: Geographical data for
Slide 15: Packard Bell Strengthens Global Footprint & Scale
Packard Bell Strengthens Global Footprint & Scale • Leading provider of PCs in Europe, including the UK, Total France, Spain, Italy, the Netherlands, and Belgium Volume (in Millions) • Products include Desktops, Americas 2.4 4.7 -- 7.0 Notebooks, MP3 Players, GPS system, Monitors, and EMEA 8.7 0.1 2