Stock Code：1268

Hi-Lai Foods Co.,Ltd

Presentation

E-mail: stock@hilai-foods.com

2016.12.01 1

Company Profile

2

Company Overview

Date of Incorporation 2003 January

ChairmanLAI,TSUNG-

CHENG

Paid-in CapitalNT$ 336million

“Head Chef”

System

36 StoresChinese-style cuisineWestern-style cuisine

Japanese-style cuisine

Taiwan：30 Stores (29 Directly Owned & 1 agency)Xi‘an：4 stores (Direct-Own)Shanghai：2 stores (Franchise)

Number of Employees

1,500

3

2003• Jan. – Established Hi-Lai Foods Co.,Ltd.• – Set up Kaohsiung branch. ( Located in Grand Hi Lai Hotel ）

2008• Jun. – Set up Arena branch. ( Located in Hanshin Arena Shopping Plaza )

2011• Jan. – Founded Hi-Lai University of Food and Beverage

2012• Apr. – Set up Buddha branch. ( Located in Kaohsiung Buddha Museum )

2013• Apr. – Set up Taichung branch. ( Located in KSSOGO TAICHUNG )

2014

• Apr. – Set up Taoyuan branch. ( Located in TaiMall Shopping Center )• Jul. – Established Hi-Lai Foods Ltd. in Xi'an. ( Located in NIFC)• Dec. – Set up Tainan branch. ( Located in T.S. Mall )

2015• May – Set up Dunhuan branch. ( Located in Pacific SOGO-Dunhua & -Zhongxiao )• Dec. – Entry into Emerging Stock Board.

2016• Jan. – Set up a laboratory and central kitchen。• Jun. – Franchise brands in Shanghai . ( Located in Vanke Square of Qibao )• Jul. – Set up Tianmu branch. ( Located in Pacific SOGO-Tianmu )

Brief History

4

Our Brands

5

v.s.

$ 2,086

Average Unit Price

$ 765 $ 492 $ 628 $ 1,148 $ 2,434

Average Unit Price

$ 1,511 $1,249 $ 1,045 $ 860 $ 451

Average Unit Price

$ 1,561 $ 238 $ 565 $ 771

15 Brands

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

The Grand Hi Lai Hotel

Hanshin Arena Shopping Plaza

Kaohsiung Buddha Museum

T.S. Mall

KSSOGO TAICHUNG

TaiMall Shopping Center

Pacific SOGO-Dunhua

Pacific SOGO-Tianmu

Pacific SOGO-Zhongxiao

V

V

V

V

V

V

V

V

V

V

V

V

V

V

V

V

V

V

V

V

7 5 3 2 3

v.s.

V

1

Expanding Brand－Taiwan

22

Expanding Brand－Mainland China

Direct -Own

NIFC

FranchiseVanke Square in Shanghai Qibao

V

V

V

V

V V

2 1 1 1 1

23

Construction Status of Sales Revenue by Brand

HarborCuisine Series

53%VegetableCuisine Series

6%

Banquet Cuisine Series

20%

Cantonese Cuisine Series

10%

Others11%

24

Operational Foothold (1)

45F

43F

11F~12F

10F

9F

LB

The Grand Hi Lai Hotel - 14 restaurants

25

Operational Foothold (2)Hanshin Arena Shopping Plaza - 5 restaurants

9F

9F

5F

5F

1F 26

Operational Foothold (3)

Buddha Museum - 2 restaurants

27

Operational Foothold (4)KSSOGO TAICHUNG – 2 restaurants

16F

16F

28

Operational Foothold (5)

TaiMall Shopping Center – 2 restaurants

6F

6F

29

Operational Foothold (6)

T.S. Mall – 2 restaurants

4F

3F

30

Operational Foothold (7)(8)(9)

Pacific SOGO Department Store – 3 restaurants

6F

11F

7F

Dunhua Store

Zhongxiao Store

Tianmu Store

31

Operational Foothold (10)

6F

5F

5F

5F

NIFC – 4 restaurants

32

Operational Foothold (11)

5F 4F

Vanke Square in Shanghai Qibao – 2 restaurants

33

Competitiveness & Industry Analysis

34

The "Head Chef" System

A Five-Star Quality &

Environment

Pricing Strategy (Excellent Cost-Performance)

Cost Savings Via Bulk

Purchasing

A Rich and Diverse Menu

Business Model

Innovation

Competitiveness

35

營業額 2011 2012 2013 2014 20152016

1/1~9/30

Hi-Lai Foods 15.90 17.95 19.78 21.79 28.96 23.57

Catering industry 3,809 3,945 4,007 4,129 4,241 3,287

Market share 0.42% 0.46% 0.49% 0.53% 0.68% 0.72%

Unit : NTD$ hundred million

Taiwan Market Share

Source：MOEA

36

Annual Growth Rate

37

Operating Results

38

Expanding momentum

Step out Kaohsiung

Step into Mainland China

3 3 4 5 4

20 2023

27

32

36

15.90 E17.95 E

19.78 E

21.79 E

28.96 E

2011 2012 2013 2014 2015 2016

Expand Restaurant Count Total Restaurants Sales Revenue(NT$ hundred million, "E" )39

Financial PerformanceUnit: NTD

YearPaid in Capital

(NT$ million)EPS

Dividend per share in the following year

Cash Stock Payout ratio

2015 320,000 6.13 4.50 0.50 81.57%

2014 282,000 5.10 4.11 80.59%

2013 260,000 4.44 3.50 78.83%

40

Development Strategy

41

Expanding Territory

$$$$$

To Act International

Brands.

To Earn Michelin

Stars.

To Build New

Brands.

42

Developing Young Brands

Affordable Prices

Attract Younger

Demographics

Go with the Tide

ECOFriendly

43

Department Store Mainly

Multi-star hotel Wayside Store Department Store

1 1

9Places

Dining &

Entertainment Trend

44

Future Overseas

China

Taiwan

Directly OwnedFranchiseAgency

Business Model

Directly OwnedFranchise

Agency

Directly OwnedAgency

45

Welcome!46