Acer Incorporated 2014 Annual Report 1
Total Page:16
File Type:pdf, Size:1020Kb
Acer Incorporated 2014 Annual Report 1 Acer Incorporated www.acer-group.com Printed on eco-friendly paper with soy ink. 2014 Annual Report Published Date: May 7,2015 Acer Incorporated 2014 Annual Report 1 APPENDIX 1. Name, Title and Contact Details of Company’s Spokespersons Principal Nancy Hu CFO +886-2-2696-1234 Nancy.Hu @acer.com Deputy Claire Yang Associate PR Manager +886-2-2696-1234 [email protected] 2. Address and Telephone Numbers of Company’s Headquarter and Branches Office Address Tel Acer Inc. 7F.-5, No.369, Fuxing N. Rd., Songshan Dist., +886-2-2719-5000 Registered Address Taipei City 105, Taiwan Acer Inc. 8F., No.88, Sec. 1, Xintai 5th Rd., Xizhi Dist., +886-2-2696-1234 (Xizhi Office) New Taipei City 221, Taiwan DISCLAIMER Acer Inc. 3F., No.139, Minzu Rd., East Dist., Hsinchu City +886-3-533-9141 (Hsinchu Branch) 300, Taiwan This is a translation of the 2014 Annual Report of Acer Incorporated (the “Company”). The translation is intended for reference Acer Inc. 3F., No.371, Sec. 1, Wenxin Rd., Nantun Dist., only and nothing else, the Company hereby disclaims any and all liabilities whatsoever for the translation. The Chinese text of the +886-4-2250-3355 (Taichung Branch) Taichung City 408, Taiwan Annual Report shall govern any and all matters related to the interpretation of the subject matter stated herein. Acer Inc. 4F.-6, No.38, Xinguang Rd., Lingya Dist., +886-7-338-8386 (Kaohsiung Branch) Kaohsiung City 802, Taiwan Acer Inc. No.138, Nangong Rd., Luzhu Township, (Shipping & Warehouse Management +886-3-322-2421 Taoyuan County 338, Taiwan Center) 3. Address and Contact Details of Acer Shareholders’ Services Address: 7F.-5, No.369, Fuxing N. Rd., Songshan Dist., Taipei City 105, Taiwan Tel: +886-2-2719-5000 E-mail: [email protected] 4. Address and Contact Details of Auditing CPAs in the Most Recent Year Name: Tzu-Chieh Tang and Wei-Ming Shih at KPMG Address: 68F., No.7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City 110, Taiwan Tel: +886-2-8101-6666 Website: www.kpmg.com.tw 5. Overseas Securities Exchange Listed Market for GDRs: London Stock Exchange Market For further information, please refer to Website: www.Londonstockexchange.com Listed Market for ECB: Singapore Exchange Ltd. Company For further information, please refer to Website: www.sgx.com 6. Acer Group Website: www.acer-group.com Acer Incorporated Acer Incorporated 2 2014 Annual Report 2014 Annual Report 3 INDEX 1 Business Report 4 6 Corporate Social Responsibility 78 1.1 Acer’s Core Values 8 6.1 Environment, Safety and Health Management 80 1.2 2014 Operating Report 9 6.2 Supply Chain Management 83 1.3 2015 Business Plan 11 6.3 Communication 84 6.4 Community Involvement 85 6.5 Enforcement of Corporate Social Responsibility by the Company 86 2 Company In General 12 2.1 Brief Account of the Company 14 7 Financial Standing 92 7.1 Five-year Consolidated Financial Information 94 3 Corporate Governance Principles 20 7.2 Five-year Financial Analysis 98 7.3 Audit Committee's Review Report 102 3.1 Organization of the Company 22 7.4 Financial Statements Consolidated Subsidiaries Audited by CPAs of the Past Year 102 3.2 Information Regarding Board of Directors, Supervisors and Key Managers 24 7.5 Disclosure of the Impact on Company’s Financial Status Due to Financial Difficulties 102 3.3 Corporate Governance Status 36 7.6 Financial Prediction and Achievements 103 Capital and Shares 52 4 Risk Management 104 4.1 Sources of Capital 54 8 8.1 Recent Annual Investment Policy and Main Reasons of Gain or Loss and Improvement Plan 106 4.2 Corporate Bonds 59 8.2 Important Notices for Risk Management and Evaluation 107 4.3 Special Shares 64 4.4 Global Depository Receipts (GDRs) Issuance 64 4.5 Employee Stock Options 65 4.6 Restricted Stock Awards 65 Appendix 111 4.7 Issuance of New Shares Due to Company’s Mergers and Acquisitions 66 2014 Consolidated Financial Statements 112 4.8 Issuance of New Shares by Cash 66 5 Acer’s Business Formula 68 5.1 Business Scope 70 5.2 Market Highlights 71 5.3 Keys to a Sustainable Future 71 5.4 Employees 73 5.5 Important Contracts 77 Business Report 1 Acer Incorporated Acer Incorporated 6 2014 Annual Report 2014 Annual Report 7 Business Report to Shareholders Year 2014 marked an important turning point for Acer. Stan Shih, connected universe across different devices, operating systems and Once again I would like to thank all our shareholders, for your support our honorary chairman, handed me the important role of leading platforms. Through the BYOC alliance we have developed many new is our greatest encouragement! Seeing light at the end of the tunnel, the company forward as chairman in addition to my responsibility as applications, and successfully provided a smooth online registration bright prospects await Acer, so please extend your support and allow executive secretary of the Transformation Committee. With the con- process for Taiwan’s first IAAF certified marathon for which 12,000 us to enjoy the fruitful results together! certed determination and efforts of company CEO Jason Chen, the spots for registration were filled and completed via the website cre- executive management team and worldwide colleagues, we gradually ated by Acer. Moreover, we operated the website and online ticketing implemented the necessary changes and turned around the company of Taiwanese diva Jody Chiang’s farewell concerts where tickets were Yours sincerely, operations. sold out within 26 minutes. Going forward, we will continue to develop applications, work with more partners to design user-oriented and a Quarter after quarter, we made steady progress: with Q1 operating diversified range of products and services. income of NTD127M (US$4.2M) and profits after tax (PAT) of NTD1M George Huang (US$37K); Q2 operating income of NTD662M (US$22.14M) and PAT With the Internet of Things (IoT) taking the world by storm; Acer has Acer Chairman of NTD485M (US$16.2M); and Q3 operating income of NTD1.10B not only joined the IoT with our BYOC vision, but also incorporated the (US$36.27M) and PAT of NTD651M (US$21.38M). Finally, in Q4 we re- “Internet of Beings (IoB)” concept and mindset throughout our prod- ported the operating income of NTD814M (US$25.67M) and PAT of uct offerings, perfectly integrating user intelligence with device func- NTD654M (US$20.63M) to achieve the full year 2014 consolidated tionality. In the future, all sorts of devices will wirelessly and seam- revenues of NTD329.68B (US$10.39B). With this, we can declare that lessly interconnect through the BYOC platform; while enterprises, Acer has successfully returned to profitability and would like to ex- families or even individuals can create their own cloud with their own press our deepest gratitude to our shareholders, as we could only have intelligence and personal devices. made it so far with your support. In addition to your persistent back- Change and transformation are what we have consistently worked ing, we completed in February the second public offering of common on for the past two years. However, we realize that transformation is shares raising a total of NTD5.4B (US$180M) in funds. The extra funds a long and continuous journey that may take as long as three years. will help with new business investments for the company’s long-term Looking forward to 2015, Acer must adapt steadily and develop ac- sustainability and toward R&D to provide customers with even better tively despite the instability of external factors. We must work harder products and services. and to face challenges with a positive attitude. Under our Build Your Own Cloud (BYOC™) vision, Acer is transform- ing into a "hardware + software + services" player in the era of cloud technology and already achieved several milestones. Acer’s BYOC is a world where users can easily create, personalize and enjoy their own Acer Incorporated Acer Incorporated 8 2014 Annual Report 2014 Annual Report 9 • Keep promises and build trust-based relationships with stakeholders. Make an Work together 1.1 Acer’s Core Values effort to overcome difficulties and construct a model that balances different to create value, parties' interests. overcome Under the BYOC vision, Acer is transforming itself to a hardware + software + services company. Based on the Wangdao philosophy, Balance of difficulties and • Form collaborative relationships that balance the six aspect values: tangible vs. Acer is working with partners to create value, and build an ecosystem that balances all interests. In the process of transition, we Interests construct a model intangible; direct vs. indirect; present vs. future. must create new core values, therefore, on top of our original values, we added new elements and goals and now present our re- that balances the • Value the balance among associated groups (environment, social, and cultural). interests of all • Motivate employees and partners and establish long-term partnerships. freshed Core Values to form and strengthen the core competencies we need to ensure a stronger Acer in the future. stakeholders. In addition to Acer's long-held core values of Integrity, Teamwork and Innovation, we are expanding to include three new key values Abide by corporate for a total of six: Passion, User-centric, Innovation, Teamwork, Balance of Interests, and Integrity. governance, • Follow the codes of conduct or social norms when performing duties and always regulations and serve as a role model for others. standards of • Never appropriate public resources for private use. Core Value Rational Meaning Emotional Meaning Integrity business conduct • Never reveal or leak confidential information when inappropriate.