Acer 2006 Annual Report Download

Download and view the complete annual report

Please find the complete 2006 Acer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 49

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49

Table of contents

  • Page 1

  • Page 2
    ... Address ： 68F, TAIPEI 101 TOWER, No.7, Rec 5, Xinyi Road, Taipei, 11049 Taiwan, R.O.C. Tel ： 886-2-8101-6666 e-mail : www.kpmg.com.tw 5. The market location for GDRs and the Web Page, via which you may inquire the relevant information, is: www.Londonstockexchange.com 6. Acer Website: www.acer...

  • Page 3
    ... 1. Business Report to Shareholders 1.1 2006 Operating Report ...3 1.2 2007 Business Plan...3 2.Company In General 2.1 Brief Account of the Company...5 3. The Corporate Governance Reports 3.1 The Organization of the Company ...9 3.2 Information of Board of Directors, Supervisors and Key Managers...

  • Page 4
    7. Risk Management 7.1 Recent Yearly Investment Policy and Main Reasons of Gain or Loss and Plan of Improvement for the Next Year ...87 7.2 Items to be Noticed for Risk Management & Evaluation ...88

  • Page 5
    ... growth rates than the industry's major players. Acer endured a tough period and has emerged winning, proving once again that our business model is adaptable to volatile market changes. Hence, we are confident in securing the No. 3 global PC ranking during the course of 2007. In 2006, the Acer brand...

  • Page 6
    ... 2006 was the thirtieth anniversary of the company founding and represented a major accomplishment. In 2007, we are confident in setting another milestone by becoming a world top-three PC brand. On behalf of all Acer employees, I wish to thank all our shareholders for your unrelenting support and...

  • Page 7
    ... Value Lab" has developed a series The "Product Value Lab" would of "Empowering Technology" which enables the customers to operate the frequent-use functions via the simplified interface. continue to develop the products that could meet customers' demands. 1.2 2007 Business Plan 1.2.1 Business Plan...

  • Page 8
    .... 3 PC global player. B. To expand the key markets such as US, China etc. C. To augment the contributions from segments of desktop and LCD TV. 1.2.3 Marketing Strategy： A. To collaborate with the first-tier suppliers and distributors. B. To fully utilize the resources of partners. C. To share the...

  • Page 9
    ...bit home computer 1983 • Acer was the first company to promote 16-bit PC products in Taiwan 1984 • Acer Peripherals, Inc. (now BenQ Corp.) and Multiventure Investments, Inc. were established 1985 • AcerLand, Taiwan's first and largest franchised computer retail chain was founded 1986 • Acer...

  • Page 10
    ...RISC CPUs with Microsoft® Windows® NT 1994 • Acer introduced the world's first dual Intel® Pentium® PC 1995 • The popular Aspire multimedia PC brought Acer closer to the consumer electronics market 1996 • Acer announced its commitment to providing fresh technology to be enjoyed by everyone...

  • Page 11
    ...of e-business: MegaMicro e-Enabling Services 2002 • The new Acer Aspire was launched, bringing fresh standards to the global home-PC arena • The Product Value Labs were inaugurated to enhance Acer's customer-centric focus, and integrated technologies that add value to customers' lives • Launch...

  • Page 12
    ... became the worldwide No. 4 vendor for Total PCs and notebooks • Acer became the No. 1 brand in EMEA and Western Europe for notebooks 2006 • Acer was the first-to-market with a full line of Intel® Centrino® Duo mobile technology notebooks • Acer was voted Reader's Digest gold-medal Computer...

  • Page 13
    ...Corp. President Corporate Strategy Office Value Labs IT Products Business China Operations Taiwan Operations Pan America Operations Asian Pacific Operations Europe, Middle East & Africa Operations Channel Business e-Enabling Services Business Finance Human Resources Information Technology...

  • Page 14
    ...planning, investment management, set and monitor budgets, accounting issues; cash flow, credit and cost control. Promote Acer's brand name products through marketing communications, public relations and advertising. Plan and integrate sales, accounting, inventory and asset information. Maintain Acer...

  • Page 15
    .... Chairman of Lottery Technology Services Corp. Director of E-life Mall Corp. Director of TWP Corporation Chairman of Acer Cyber Bachelor Center Services Ltd. Director of Digital Computer System Co., Ltd. Director of Minly Corp. Director of Weblink International Inc. Chairman of Acer Digital Service...

  • Page 16
    ... Network Co., Ltd. Supervisor of TFN Investment Co.,Ltd Vice-Chairman of Taiwan Hong Yuan Investment Co.,Ltd Chairman of Id SoftCapital Inc. Bachelor Director Supervisor of Acer Capital Corp. - - Stan Shih Hasband Major Institutional Shareholders (Mar. 31, 2007) Name Hung Rouan Investment Corp...

  • Page 17
    ... of Acer Cyber Center Services Inc. Chairman of TWP Corp. Chairman of Weblink International Inc. Director of TWP Corp. Director of Lottery Technology Services Vice President James Chiang 01/01/2002 1,730,065 0.07 21,301 Bachelor Corp. Chairman of Sertek Inc. Chairman of Digital Computer System Co...

  • Page 18
    Date of Title Name Assuming Office Shares Held Directly Shares Held by Spouse & Minor Number Percentage Master Director of Acer Digital Service Co., Degree Main Curriculum Vitae Other President or VP who is the Spouse or Kinship Within 2 Degrees Title Name Relationship - Number Vice President ...

  • Page 19
    ...governing acquisitions and dispositions of assets etc. B. The composition and duties of Board of Directors a. The election of independent None directors b. The regular evaluation of The evaluation of CPA is one of the main duties of independence of CPA Financial Statement and Internal Control Review...

  • Page 20
    ... with communication channels with suppliers, buyers, stakeholders banks, investors and other stakeholders. The composition of supervisors is taken into considerations of business needs and practice. No discrepancy No discrepancy E. The disclosure of information The Company has set up a website...

  • Page 21
    ... for overseeing the Company worldwide Eco strategy, and monitoring the results of the Eco management system. The Company has also set up an exclusive e-mail box ([email protected]), environmental web, and published Corporate Environmental Report. z The Company has set up an exclusive web site for new...

  • Page 22
    ... 2006, its internal control system (including its supervision of subsidiaries), as well as its internal controls to monitor the achievement of its objectives concerning operational effectiveness and efficiency, reliability of financial reporting, and compliance with applicable laws and regulations...

  • Page 23
    ...of the Capital Date Price of Issuance Authorized Common stock Shares Value Paid-in Common stock Shares Value 23,370,636 Unit: Share/Thousand NT$ Notes Source of the capital August, Share/ 2,800,000,000 2006 NT$10 28,000,000 2,337,063,681 Unit: Shares Shares Category Common shares Issued shares...

  • Page 24
    ...Branch in custody for The Income Fund of America, Inc. Hong Rong Investment Corp. Stan Shih Acer Incorporated Global Depositary Receipt Management Board of Public Service Pension Fund National Financial Stabilization Fund GIC-GOS SinoPac Bank Trust Department Account Number 151,845,420 85,494,000 74...

  • Page 25
    ... holdings at the ratio of 15 shares for every one thousand shares held. 4.1.7 An Analysis on Impact of the Proposed Stock Dividends Appropriation in Terms of Operating Results, Earnings Per Share and Rate of Return of Shareholders' Investment Year Estimates for 2007 Description Paid-in capital...

  • Page 26
    ... the Shareholders' Meeting (1) The dividend distribution： 1.Cash bonuses to employees NT$374,546,020 2.Stock Bonuses to employees (1)Number of Shares (2)Value (3)The rate of the circulation of shares in stock market on the ex-right day 3. Remunerations to directors, supervisors (2)The information...

  • Page 27
    ... of the current term. term. Any key issue for the depository and custodian None None agreements Highest US$12.94 2006 Lowest US$6.30 Market Average US$9.28 Price Per Highest US$10.59 Share Until Mar. 31th, 2007 Lowest US$9.16 Average US$9.54 4.5 Employee Stock Options: Not Applicable 4.6 Mergers...

  • Page 28
    ... test, sell, lease or rent, provide maintenance services, integrate, and technical support, or to commission others to assemble, process, or manufacture, mechanical products, electrical appliances and products, instruments, electronic products, electronic communication equipment and office machinery...

  • Page 29
    ... & information network planning and set up. Personal Multimedia、LCD TV、DSC、 Digital Home Products Software and Enterprise information system integration IT services, hardware and services, enterprise specified network Repair software consulting; Service services for corporations, data centers...

  • Page 30
    ... home PC and media server for living room : Desktop Computers Aspire iDEA series 1. Utilize IMD (In-Mode-Decoration) technology and Acer' s unique ID design for next generation Consumer Notebooks 2. Utilize "Dolby Digital Surround Sound" technology and Acer' s unique design on speakers to create...

  • Page 31
    ...TV, Digital Home, LCD TVs Media Gateway and PVR technology Digital Home Personal content sharing solution among desktop, notebook and TV Acer mobile email is for PDA phone user to automatically retrieve their important emails from email servers. It supports most types of popular and enterprise email...

  • Page 32
    ... 60.1% 39.9% (3) Competitiveness The Company has completely transformed to a brand selling of the IT products and a professional electronic service company and actively adjusts the organization and supply chains. In year 2007, the Company will not only keep the PC business growing but also focus...

  • Page 33
    ... "One-company, One-brand, One-Team" policy and "Multiple-Suppliers, Multiple-Products, Multiple-Channels" business models, with the global competitive experiences, possess empowering technology, speed, quality controls and have flexible supply chain management, risk management, win-win strategy, and...

  • Page 34
    ...Subsidiary of the Company. Central billing to AEG for Europe region since 2005. AAC (PA region) increased retailer model since 2005. (2) Key Suppliers (Expressed in Thousand NTD) Unit: Thousand NT$ Year 2005 Percentage Relationship from amount of total net from with AI sales (%) 1 Supplier A 88,356...

  • Page 35
    ...,080 16,800,894 21,005,974 147,747,132 36,204,993 183,952,125 Unit: Thousand NT$ 2006 Domestic Foreign Sales Sales 6,211,901 9,810,246 16,022,147 188,698,902 33,477,598 222,176,500 5.3 Employee data, Year 2005~2007.03.31 Year Research & Development Engineering H/C Marcom & Sales Sales Supporting...

  • Page 36
    ...In order to receive updated worldwide environmental protection information, the Company and IER have continued coordinating closely and planning an environmental strategy for promoting the Company's management system. The plans include environmental communication, environmental trainings and writing...

  • Page 37
    ...As of March 31, 2007 Unit: Thousand NTD Period Item Current assets Fund and Long-term equity investments Net property, plant and equipment Intangible assets Other assets Total assets Current Liabilities Before Distribution After Distribution Most recent 5-Year Financial Information 2002 26,737,022...

  • Page 38
    ... Financial Information Period Item Operating revenue Gross profit Operating (loss) income Non-operating Income and Gain Non-operating Expense and Loss Continuing operating income before tax Income(Loss) from Discontinuned segment Income after income taxes EPS 2002 2003 2004 2005 2006 Current year...

  • Page 39
    ...estate property and business managed by the Construction Business Unit and as a result, the related property was reclassified from "property, plant and equipment" to "property not used in operations". 2. Cash flow ratio, Cash flow adequacy ratio and Cash reinvestment ratio changed over 20% is mainly...

  • Page 40
    ...tax rate) ／the average of total assets (2) Return on equity＝PAT／the average of net equity (3) Net income ratio＝PAT／Net sales (4) EPS ＝ PAT－ Dividend from prefer stock ／weighted average outstanding shares 5. Cash Flow (1) Cash flow ratio＝Cash flow from operating activities／Current...

  • Page 41
    ... of Supervisor To: The 2007 General Shareholders Meeting The Board of Directors of the Company has prepared the 2006 financial report, including balance sheet, statement of income, statements of changes in stockholders' equity, and statement of cash flows, and Winston Yu and Albert Lou at KPMG...

  • Page 42
    ...H t Rate % 124% 125% 118% 56% 568% 169% 382% 123% 118% 6.6.2 Financial Forecast of Year 2006 Unit: Thousand NTD Item Revenue C.O.G.S Gross margin Operating Expense Operating Income Non-operating Income Non-operating Expense Profit Before Tax Profit After Tax Financial Forecast of Year 2006 Original...

  • Page 43
    ...647k, which were 74% of the financial forecast. And Gross margin, operating income and profit before tax of year 2006 amounted to 9,467,248K, 6,736,605K and 11,774,747K respectively which were 84%, 81% and 103% of the whole year financial forecast respectively. The achievement status was good. -86-

  • Page 44
    ... Amount Policy Year 2006 P&L Main reason of Gain or Loss Recognized Disposal gain for The Plan for Improvement Unit: Thousand NT$ Investment Plan for Next Year Acer Digital Service Co. Acer European Holdings N.V. Acer Holdings International, Incorporated Acer Worldwide Incorporated Acer SoftCapital...

  • Page 45
    ... are the future plans? Our Company does not make any high risk/leverage investment. The short-term idle capital is used to purchase the government bond and high raking bond fund or corporate bond. The long-term idle capital is used for investing company that has synergy with our core business. -88-

  • Page 46
    ... Aug./2007 Dec./2007 Future Plan Acer VCM v2.5 Current Status Expenditure Product design & USD$200K test stage Key Success Factor High resolution & high frame rate video chat program 2nd advanced power management program Integration for security devices 3rd advanced power management program and...

  • Page 47
    ...is a branding company with a main mission to empower technology for people. The products are developed to be in line with the mainstream technology and high added value concept. The Company has outsourced the manufacturing to other suppliers to focus on branding/marketing, and its competitiveness is...

  • Page 48
    ... disputes that: (1) involve Acer and/or any Acer director, any Acer supervisor, the general manager, any person with actual responsibility for the firm, any major shareholder holding a stake of greater than 10 percent, and/or any company or companies controlled by Acer; and (2) have been...

  • Page 49
    ... firm, any major shareholder holding a stake of greater than 10 percent were not involved in any material litigious, non-litigious or administrative disputes. 3. In annual 2006 and as of the date of printing of this annual report, any company or companies controlled by Acer were not involved in any...