http://www.poya.com.tw/en/

Agenda

2

I. Introduction

II. Competitive Advantages

II. Future Development

IV. Financial Performance

Introduction

I. Company Intro

II. Milestones

III. Core Value

IV. Customers

V. Sale Allocation

VI. Branches

3

Company Intro

Chairman

Listing on Taipei Exchange

Capital

Mr. Chen, Jian-Zao

6th Sep, 2002

NTD 0.98 billion

Number of Staff 4,596 (Jan., 2020)

Number of Stores Poya 230 + Poya home 5 (Now)

4

5

Milestones

2014 Operate the 100 store at the end of October

2009 Establish the headquarters in Taipei

1975 Originate from night market and traditional market in Tainan

1993 Establish first branch in Kaohsiung; GM Mr. Chen Zong-Cheng join the team

1994 Establish the chain system; set up 1st generation CIS

2002 Listed on the Taipei Exchange in Taiwan

2006 Card-debt crisis in Taiwan; reform the stores to 3rd generation

2012 Focus on management innovation; implement the program for 4th

generation stores; further increase customer value

1998 Operate 10 stores; upgrade the CIS to 2nd generation

2014 Win the “Chin-Kuei Prize-Employment Promotion” awarded by Taipei Exchange

2018 Be ranked in top 5% of the TPEx-listed companies in "2017 Corporate Governance

Evaluation" hold by TWSE (For Four Consecutive Years)

2018 Operate the 200 store in December

Position

Female Product Shop

More Choices

High-quality Products

Easy Purchases

6

7

Target Customers -Female, Aged between 15~49

8 Ps. Accessories & Textile: includes accessories, socks, leather goods and underwear.

17% 17% 16%

14%

12%

8%

5% 5%

3% 3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Household Skin Care Cosmetics Accessories&Textile Bath Food Beauty Hardware Other Groceries

Sale Allocation 201901~09

Locations of 235 Stores in Taiwan

Southern Taiwan 80 stores (3 Poya Home)

Central Taiwan 67 stores (2 Poya Home)

Northern Taiwan 88stores

9

( 230 Poya and 5 Poya Home)

Competitive Advantages

I. Largest Market Share

II. Explicit Market Distinction

10

Largest Market Share 88% in the Market

0

50

100

150

200

250

POYA MIRADA A+1 J-MART SEASONS

230

15 0 10 6

11

* Mirada will shutdown 10 shops on 31st January, 2020, number has been deducted.

Explicit Market Distinction

Pharmacy:15,000sku POYA:60,000sku

40% 60%

1. Medicine & contact lenses & maintenance products

2. Nutritional supplement

3. Private brand

30%

POYA’s Products 17.5%

FMCG

12

Non-FMCG

Future Development

I. Keep Upgrading the Stores and Products

II. Keep Opening New Stores

III. Improve Logistic System

IV. Develop a new brand- POYA HOME

13

Keep Upgrading the Stores and Products

14

Brand Image Promotion

Product Mix Optimization

Easy

Purchase

Offering

15

Upgrade Stores & Products -Keep Creating Fashion Sense in Stores

16

Upgrade Stores & Products -Hotspots enhance product impressions

17

Estimated Market Size 440 Stores - Keep Fast Store Expansion

Undeveloped Market: 179 Stores

40%

1. A store should be support by 40,000 people

2. With the population of 23 million, the maximum of stores=575

3. Estimated number of effective stores: 575*70%=400

4. Potential: 40 mall shops

5. Market size: 440 stores

Developed Market: 261 Stores

60%

* Number excluded POYA HOME.

18

Enlarge Scope & Benefit by Increasing Store Number of Poya

* 2019 Dec. Added 40 mall shops. * Number excluded POYA HOME.

0

100

200

300

400

500

74 87

109 131

157 177

201

230 250 270

290

400 440

19

2019 2020 2021 2022 2023 2024 2025

230 250 270 290 310 330 350

5 30

65 100

140 180

220

Six-year Expansion Plan

X

Total-> 235 280 335 390 450 510 570

Store number

Centralized Logistic Center

Taoyuan

Kaohsiung

Logistic Center in North

Logistic Center in South

Logistic Center in North:

Capacity: 200 stores

Started operating since January, 2019

Logistic Center in South:

Capacity: 200 stores

Started operating since July, 2017

20

5th POYA HOME in Changhua

POYA HOME 5 stores (Now)

Pingtung Tainan

Tainan Taichung

Financial Performance

23

I. Trend of Revenue

II. Trend of Gross Profit Margin

III. Trend of Operating Profit Margin

IV. Trend of Net Income Margin

V. Trend of Net Income

VI. Dividend Policy

Trend of Revenue

24

(TWDm)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

3,437 4,097

4,881 5,597

6,118 6,278 6,700 7,249

9,168

10,688

12,424 13,262

14,084

15,787

1,630

IFRS ROC GAAP

Trend of Gross Profit Margin

25

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

28.20% 28.20% 29.20% 28.70%

30.40% 32.60%

35.40%

39.66% 40.48% 40.96% 41.11% 42.82%

43.79% 42.71%

IFRS ROC GAAP

Trend of Operating Profit Margin

26

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

3.89% 4.21% 4.85%

4.01% 4.58%

5.70%

6.83%

8.23%

9.76% 10.56%

10.95%

12.98%

14.89% 15.14%

IFRS ROC GAAP

Trend of Net Income Margin

27

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

3.57% 3.73% 4.18%

3.49%

4.67% 5.36%

6.47%

7.71% 8.43%

8.91% 9.41%

10.78%

12.14% 11.72%

IFRS ROC GAAP

Trend of Net Income

28

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

123 153 204 195

286 336 433

563

772

952

1,169

1,169

1,709

1,379

(TWDm) IFRS ROC GAAP

Dividend Policy -Mainly in Cash Dividend

29

3.08 2.69 3.26 3.76

4.75

6.03

8.22

10

12.13

14.63

17.5

1.8 0.5 2.8

3.28 4.1

4.8

7.4 8.8

10.7

13

15.75

58% 19% 86%

87% 86% 80% 90% 88% 88% 89% 90% 0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

EPS(after tax)

Cash Dividend

Cash Dividend

Payout Ratio

www.poya.com.tw/en/