2006-10-27 acer 3q 2006 investor conference (chinese) · 3 1,851 2.0% 1,966 2.4% eps 0.81 0.86...
TRANSCRIPT
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Business Review
Gianfranco Lanci
President
IT Product Business Highlights
13
IT Product Revenue Breakdown (Q1-Q3)
57%9%
15%
19%
Notebook Desktop PC
Display Others
Note: Others include servers, projector and IA products
19%
15%
6%
60%
Notebook Desktop PC
Display Others
Q1-Q3, Y2006
NT$215,456 Million
Q1-Q3, Y2005
NT$178,008 Million
14
IT Product Revenue Breakdown by Geography(Q1-Q3)
6%57%
4%
18%
15%
EMEA Pan AmericaAsia Pacific Taiwan China & HK
Q1-Q3, Y2006
NT$215,456 Million
Q1-Q3, Y2005
NT$178,008 Million
4%
14%
13%
6% 63%
EMEA Pan AmericaAsia Pacific TaiwanChina & HK
Note: (a) Asia Pacific excludes Greater China (Taiwan, HK, and Mainland China)
(b) EMEA stands for Europe, Middle East and Africa
15
26
15
1214
1819
22
3230
19
1513
12
1919
14
17
22 22
10
20
30
40
Q1'
02
Q2'
02
Q3'
02
Q4'
02
Q1'
03
Q2'
03
Q3'
03
Q4'
03
Q1'
04
Q2'
04
Q3'
04
Q4'
04
Q1'
05
Q2'
05
Q3'
05
Q4'
05
Q1'
06
Q2'
06
Q3'
06
Inventory Turnover Days (ADS)
IT Products Business IT Products Business
Note: Q2' 03 and Q3' 03 inventory rose due to increased sourcing of key components in order to avoid anticipated shortages
16
Operating Expenses as % of Total RevenueIT Product Business IT Product Business
14.76%
11.57%
12.81%
8.52%
11.13%10.72%
9.97%
7.93%
8.80% 8.75%8.02%
8.07%
7.48%7.72%
7.61%
6.58%
7.75%8.00%7.65%
0.0%
8.0%
16.0%
Q1 Q2 Q3 Q4
Y2002 Y2003 Y2004Y2005 Y2006
Acer's Channel Business Model Works for Future Success
J.T. Wang
Chairman & CEO
18
Top 5 PC Brands Worldwide (3Q’06)
15.4%15.1%14.9%16.3%HPQ1
Unit GrowthMarket Share
30.5%3.5%3.5%4.3%Toshiba5
6.7%Overall Market
33.4%4.7%5.2%5.9%4
10.1%7.3%7.3%7.5%Lenovo3
3.6%16.6%17.8%16.1%Dell2
YoY3Q’052Q’063Q’06Rank
Gartner Source (October, 2006)
19
Top 5 PC Brands EMEA (3Q’06)
36.7%9.0%9.8%11.2%2
6.9%11.5%13.2%11.2%Dell3
20.7%16.1%16.4%17.8%HPQ1
Unit GrowthMarket Share
43.1%3.5%4.0%4.6%Toshiba5
9.1%Overall Market
-8.2%7.5%6.5%6.3%F/S4
YoY3Q’052Q’063Q’06Rank
Source: Gartner Dataquest (October, 2006)
*: EMEA market includes Europe, Middle East and Africa
20
Mainstream PC Industry Opinions
Both channel and direct models are excellent
Direct model will kill all kinds of channels
Year 2006Year 2006Year 2001Year 2001
� Acer contributed strategically to this change in the past five years.
21
Channel Remains its Dominant Position � In the future, the PC industry will further consolidated. PC
products will become more commoditized.
� The channel business model will likely gain more share —and eventually the dominant share.
� Even in the U.S. market, more consumers prefer to buy a notebook PC in retail channels instead of shopping on the web.
� Acer's mini-desktop PC is as small and easy-to-carry as a notebook; we see the possibility to run our desktop PC business like notebook successfully.
22
� Sticking with channel business, Acer is sure to continue its phenomenal growth in the coming few years, based upon the current product lines, such as notebook, desktop PC and LCD monitor.
� Digital home solution (including LCD TV) and smart phones will be Acer’s “Star” products within the next few years.
� Acer is ready to accommodate the accelerating consolidation of the PC industry.
� Acer is committed to being the best choice of PC brand companies for supply and channel partners; we strongly believe that “ the winner needs the winning partner to be successful”.
Acer is Ready to Win with Channel
23
� ODM companies will soon consolidated to a small quantity of winners. The winners will become vertically integrated, global operations with full capabilities.
� Acer would like to cooperate with these few ODM winners.
� For ODM suppliers, Acer is truly the good customer because of its finished goods and 100% outsourcing strategy.
� We have already started communicating with our ODM suppliers to get ready for a great year in 2007
ODM Consolidation Brings the Advantagesto Each Other
24
� From Acer’s point of views, channel partners today have already evolved to be strong in both the cyber and real worlds, in terms of sale as well as service.
� We are convinced that Acer-plus-channel-partners is more competitive than direct model players.
� Channel partners also recognize that Acer always penetrates into certain market segments through their solid support in that area.
� Even for corporate accounts, we'd like to work with these partners, such as distributors and IT outsourcing service providers.
� One thing is for sure: “we do not go direct”.
Acer-plus-Channel Partnership
25
� The PC industry needs a new, efficient, balanced ecosystem that allows all parties to contribute and enjoy sharing successful results.
Key Component Key Component SuppliersSuppliers
EndEnd--usersusersChannelChannelODMODMGlobal Brand Global Brand CompanyCompany
Win-Win Mechanism
26
� Acer would like to continually participate in and contribute to building a healthy, sustainable ecosystem in the coming decade.
� We see a high possibility of success through partnership, and accurate execution of the channel business model.
� Acer's “top 3 PC brand” target will be achieved during the process of contributing to and sharing in shaping the new, healthy ecosystem.
� We hope to reach this goal in 2007.
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