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

Agenda

I. Introduction

II. Competitive Advantages

III. Future Development

IV. Financial Performance

2

Introduction

I. Company Intro

II. Milestones

III. Core Value

IV. Sale Allocation

V. Customers

VI. Branches

3

Company Intro

Chairman

Listing on Taipei Exchange

Capital

Mr. Chen, Jian-Zao

6th Sep, 2002

NTD 0.96 billion

Number of Staff 4,479 (Apr, 2017)

Number of Stores 163 (Apr, 2017)

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

2016 Be ranked in top 5% of the TPEx-listed companies in "2015 Corporate Governance

Evaluation" hold by TWSE (For Two Consecutive Years)

Position

Female Product Shop

More Choices

High-quality Products

Easy Purchases

6

7

Target Customers -Female, Aged between 15~49

Sale Allocation

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

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

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

16% 16%15%

13%

11% 10%

7%

5%4%

3%

Locations of 163 Stores in Taiwan

Southern Taiwan65 stores

Central Taiwan45 stores

Northern Taiwan53 stores

9

Competitive Advantages

I. Largest Market Share

II. Explicit Market Distinction

10

Largest Market Share 75% in the Market

0

20

40

60

80

100

120

140

160

180

POYA MIRADA A+1 J-MART SEASONS

163

31

5 8 9

11

Explicit Market Distinction

Pharmacy:15,000skuPOYA:45,000sku

40%60%1. Medicine &

contact lenses & maintenance products

2. Nutritional supplement

3. Private brand

30%

POYA’s Products 23%

FMCG

12

Non-FMCG

Future Development

I. Keep Upgrading the Stores and Products

II. Keep Opening New Stores

III. Improve Logistic System

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

Upgrade Stores & Products -Hotspots Enhance Product Impressions

17

Upgrade Stores & Products -Introduce New Products by Market Trend

18

Estimated Market Size 400 Stores- Keep Fast Store Expansion

Undeveloped Market: 184 Stores

46%

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. Market size: 400 stores

Developed Market: 216 Stores

54%

0

100

200

300

400

7487

109

182(f)

93 stores

275(f)

125 stores

400(f)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

73 stores

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Enlarge Scope & Benefitby Increasing Store Number

131157

Female Product in Taipei Main Station

20

Female Product in Taipei Hsimenting

21

Female Product in Taipei Shilin Night Market

22

Female Product in Taichung Fengjia Night Market

23

Female Product in Tainan Night Market

24

Logistic System -Before

1 2 N43

1 432 N

● ● ● ● ● ● ● ●

● ● ● ● ● ●

Goods Purchase →Goods Return →

25

Logistic System -After

● ● ● ● ● ● ● ●1 2 N43

1 432 N● ● ● ● ● ● ●

Logistic System

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Goods Purchase →Goods Return →

Financial Performance

I. Trend of Revenue

II. Trend of Gross Profit Margin

III. Trend of Operating Profit Margin

IV. Trend of Net Income Margin

V. Dividend Policy

VI. 2016 Financial Report

27

Trend of Revenue

28

(TWDm)

IFRS ROC GAAP

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

3,042 3,156 3,437 4,097

4,881 5,597

6,118 6,278 6,700

7,249

9,168

10,688

12,424

4,291

Trend of Gross Profit Margin

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IFRS ROC GAAP

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

26.80%28.70%28.20%28.20%

29.20%28.70%30.40%

32.60%

35.40%

39.66%40.48%40.96%41.11% 42.49%

Trend of Operating Profit Margin

30

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

4.27%

5.50%

3.89%4.21%4.85%

4.01%4.58%

5.70%

6.83%

8.23%

9.76%10.56%

10.95%

12.12%

IFRS ROC GAAP

Trend of Net Income Margin

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IFRS ROC GAAP

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

3.44%

4.91%

3.57%3.73%4.18%

3.49%

4.67%5.36%

6.47%

7.71%8.43%

8.91%9.41%

10.15%

Trend of Net Income

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IFRS ROC GAAP

-

200

400

600

800

1,000

1,200

105 155 123 153

204 195 286

336

433

563

772

772

1,169

329

(TWDm)

Dividend Policy-Mainly in Cash Dividend

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2.53.08 2.69 3.26

3.76

4.75

6.03

8.22

10

12.13

1.8 1.80.5

2.83.28

4.14.8

7.4

8.8

10.7

72% 58% 19%86% 87% 86% 80% 90% 88% 88%0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EPS(after tax)

Cash Dividend

Cash Dividend

Payout Ratio

Income StatementsAccounting Title 2017Q1 2016Q1

Operating revenue

Total operating revenue 3,239,813 3,003,298

Operating costs

Total operating costs 1,863,094 1,834,154

Gross profit (loss) from operations 1,376,719 1,169,144

Operating expenses

Selling expenses

Total selling expenses 824,609 730,950

Administrative expenses

Total administrative expenses 159,300 150,369

Total operating expenses 983,909 881,319

Net operating income (loss) 392,810 287,825

Non-operating income and expenses

Other income

Total other income 14,497 11,160

Other gains and losses

Other gains and losses, net -8,598 633

Finance costs

Finance costs, net 2,053 1,873

Total non-operating income and expenses 3,846 9,920

Profit (loss) from continuing operations before tax 396,656 297,745

Tax expense (income)

Total tax expense (income) 67,706 51,028

Profit (loss) from continuing operations 328,950 246,717

Profit (loss) 328,950 246,717

Total comprehensive income 328,950 246,717

Basic earnings per share

Basic earnings (loss) per share from continuing operations 3.41 2.56

Total basic earnings per share 3.41 2.56

Diluted earnings per share

Diluted earnings (loss) per share from continuing operations 3.40 2.56

Total diluted earnings per share 3.40 2.56

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Balance SheetAccounting Title 2017Q1 2016Q1 Accounting Title 2017Q1 2016Q1

Assets Liabilities

Current assets Current liabilities

Cash and cash equivalents Notes payable

Total cash and cash equivalents 1,077,822 886,672 Total notes payable 80,080 479,697

Notes receivable, net Accounts payable

Notes receivable, net 6,325 17,903 Total accounts payable 1,201,028 938,321

Accounts receivable, net Other payables

Accounts receivable, net 241,678 234,147 Total other payables 583,211 466,132

Other receivables Current tax liabilities 220,095 166,946

Other receivables, net 8,435 1,979 Other current liabilities

Inventories Advance receipts

Total inventories 2,261,958 2,138,449 Total advance receipts 13,090 20,061

Prepayments Long-term liabilities, current portion

Total prepayments 118,061 107,822 Total long-term liabilities, current portion 399,103 293,571

Other current assets Other current liabilities, others 21,644 19,823

Other current financial assets 26,675 24,321 Total other current liabilities 433,837 333,455

Total other current assets 26,675 24,321 Total current liabilities 2,518,251 2,384,551

Total current assets 3,740,954 3,411,293 Non-current liabilities

Non-current assets Long-term borrowings

Property, plant and equipment Total long-term borrowings 458,691 276,513

Total property, plant and equipment 2,321,575 1,916,446 Deferred tax liabilities

Deferred tax assets 30,454 20,262 Total deferred tax liabilities 3,160 2,865

Other non-current assets Other non-current liabilities

Guarantee deposits paid 265,173 220,393 Net defined benefit liability, non-current 7,264 2,425

Other non-current financial assets Guarantee deposits received 6,718 6,466

Total other non-current financial assets 4,200 2,550 Total other non-current liabilities 13,982 8,891

Long-term prepaid rents 94,400 75,410 Total non-current liabilities 475,833 288,269

Other non-current assets, others Total liabilities 2,994,084 2,672,820

Total other non-current assets, others 10,631 9,923 Equity

Total other non-current assets 374,404 308,276 Share capital

Total non-current assets 2,726,433 2,244,984 Ordinary share 964,760 952,774

Total assets 6,467,387 5,656,277 Stock dividend to be distributed

Total capital stock 964,760 952,774

Capital surplus

Total capital surplus, additional paid-in capital 552,861 473,319

Total capital surplus 552,861 473,319

Retained earnings

Legal reserve 452,695 357,480

Total unappropriated retained earnings (accumulated deficit) 1,502,987 1,199,884

Total retained earnings 1,955,682 1,557,364

Total equity 3,473,303 2,983,457

Total liabilities and equity 6,467,387 5,656,277

Equivalent issue shares of advance receipts for ordinary share 0 0

Number of shares in entity held by entity and by its subsidiaries 0 035

Statements of Cash FlowsAccounting Title 2017Q1 2016Q1 Accounting Title 2017Q1 2016Q1

Cash flows from (used in) operating activities, indirect method Interest received 289 330

Profit (loss) from continuing operations before tax 396,656 297,745 Interest paid -2,053 -1,873

Profit (loss) before tax 396,656 297,745 Income taxes refund (paid) 0 0

Adjustments Net cash flows from (used in) operating activities 636,224 452,965

Adjustments to reconcile profit (loss) Cash flows from (used in) investing activities

Depreciation expense 105,774 92,758 Acquisition of property, plant and equipment -281,679 -208,016

Interest expense 2,053 1,873 Proceeds from disposal of property, plant and equipment 952

Interest income -289 -330 Increase in refundable deposits -12,978 -14,101

Loss (gain) on disposal of property, plan and equipment 8,489 -653 Increase in other financial assets 3,937 -18,271

Total adjustments to reconcile profit (loss) 116,027 93,648 Decrease in other non-current assets 134 483

Changes in operating assets and liabilities Other investing activities 2,990 5,027

Changes in operating assets Net cash flows from (used in) investing activities -287,596 -233,926

Decrease (increase) in notes receivable 4,094 -10,664Cash flows from (used in) financing activities

Decrease (increase) in accounts receivable 414,222 332,579 Proceeds from long-term debt 0 0

Decrease (increase) in other receivable -4,953 377 Repayments of long-term debt -104,160 -97,415

Decrease (increase) in inventories 52,857 -70,811 Increase in guarantee deposits received 220 1,440

Decrease (increase) in prepayments -24,271 -381 Cash dividends paid 0 0

Total changes in operating assets 441,949 251,100 Other financing activities 0 0

Changes in operating liabilities Net cash flows from (used in) financing activities -103,940 -95,975

Increase (decrease) in notes payable -534,182 -82,594Net increase (decrease) in cash and cash equivalents 244,688 123,064

Increase (decrease) in accounts payable 231,993 -72,497Cash and cash equivalents at beginning of period 833,134 763,608

Increase (decrease) in other payable -12,110 -43,365Cash and cash equivalents at end of period 1,077,822 886,672

Increase (decrease) in receipts in advance -3,437 7,271Cash and cash equivalents reported in the

statement of financial position1,077,822 886,672

Increase (decrease) in other current liabilities 1,504 3,644

Increase (decrease) in net defined benefit liability

-412 -444

Total changes in operating liabilities -316,644 -187,985

Total changes in operating assets and liabilities 125,305 63,115

Total adjustments 241,332 156,763

Cash inflow (outflow) generated from operations 637,988 454,508

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www.poya.com.tw/en/