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

AgendaAgenda

I.I. Introduction Introduction

II.II. Competitive AdvantagesCompetitive Advantages

III.III. Future Development Future Development

IV.IV. Financial PerformanceFinancial Performance

2

IntroductionIntroduction

I.I. CompanyCompany IntroIntro

II.II. MilestonesMilestones

III.III. CoreCore ValueValueIII.III. CoreCore ValueValue

IV.IV. SaleSale AllocationAllocation

V.V. CustomersCustomers

VI.VI. BranchesBranches

3

Company IntroCompany Intro

Chairman Chairman

Listing on Taipei Listing on Taipei ExchangeExchange

Mr. Chen, JenMr. Chen, Jen--ZhaoZhao

66thth Sep, 2002Sep, 2002

Capital Capital NTD NTD 0.95 0.95 billionbillion

Number of StaffNumber of Staff 3,981 3,981 (August, 2015)(August, 2015)

Number of storesNumber of stores 121 121 (September, 2015)(September, 2015)

4

MilestonesMilestones

1975 Originate from night market and traditional market in Tainan

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

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

2002 Listed on the Taipei Exchange in Taiwan

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

5

20142014 Operate the 100 store at the end of OctoberOperate the 100 store at the end of October

2009 Establish the headquarters in Taipei

2002 Listed on the Taipei Exchange in Taiwan

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

20122012 Focus on management innovation; implement the program for 4Focus on management innovation; implement the program for 4thth

generation stores; further increase customer valuegeneration stores; further increase customer value

20142014 Win the “ChinWin the “Chin--KueiKuei PrizePrize--Employment Promotion” awarded by Taipei ExchangeEmployment Promotion” awarded by Taipei Exchange

20152015 Be ranked in top 5% of the Be ranked in top 5% of the TPExTPEx--listed companies in "2014 Corporate Governance listed companies in "2014 Corporate Governance Evaluation" hold by TWSEEvaluation" hold by TWSE

Position

Female

More More ChoicesChoices

Female Product Shop

HighHigh--quality quality ProductsProducts

Easy Easy purchasepurchase

Target Customers Target Customers --Female, Female, Aged between 15~49Aged between 15~49

7

Sale AllocationSale Allocation

10%

12%

14%

16%

18% 18% 17%

14%

12%10% 10%

8%

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

0%

2%

4%

6%

8%

10%

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

8%

5%

3% 3%

Locations of 121 Stores in Taiwan

Central Taiwan37 stores

Northern Taiwan35 stores

Southern Taiwan49 stores

Competitive AdvantagesCompetitive Advantages

I.I. Largest Market ShareLargest Market Share

II.II. Explicit Market DistinctionExplicit Market Distinction

10

Largest Market Share Largest Market Share 71% 71% in the marketin the market

80

100

120121

0

20

40

60

POYA MIRADA A+1 J-MART SEASONS

25

5 9 10

11

Explicit Market DistinctionExplicit Market Distinction

Pharmacy:15,000skuPOYA:45,000sku

POYA’s Products23%

FMCGNon-FMCG

40%60%1. Medicine &

contact lenses & maintenance products

2. Nutritional supplement

3. Private brand

30%FMCG

12

Non-FMCG

Future DevelopmentFuture Development

I.I. Keep Upgrading the Stores and Products Keep Upgrading the Stores and Products

II.II. Keep Opening New StoresKeep Opening New StoresII.II. Keep Opening New StoresKeep Opening New Stores

III.III. Improve Improve Logistic SystemLogistic System

13

Keep Upgrading the Stores and ProductsKeep Upgrading the Stores and Products

Brand Image Brand Image PromotionPromotion

14

Product Mix Product Mix OptimizationOptimization

EasyEasy

Purchase Purchase OfferingOffering

The Design of CISThe Design of CIS--To Promote Brand ImageTo Promote Brand Image

15

Clear Shopping Route Clear Shopping Route ––To Advocate Easy, Quick PurchaseTo Advocate Easy, Quick Purchase

Optimize Product Display Optimize Product Display

Estimated Market Size Estimated Market Size 400400 StoresStores-- Keep Fast Store Expansion Keep Fast Store Expansion

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

18

Undeveloped market: 230Stores

57%57%

Developed market: 170 stores

43% 43%

4. Market size: 400 stores

300

400

90 stores

275(f)275(f)

125 stores

400(f)400(f)

75 stores

Enlarge Scope & BenefitEnlarge Scope & Benefitby Increasing Store Numberby Increasing Store Number

0

100

200

7487

109

185(f)185(f)

275(f)275(f)

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

19

131(f)131(f)

Female Product in Taipei Main Station

Female Product in Taipei Hsimenting

Female Product in Taipei Shilin Night Market

Female Product in Taichung Fengjia Night Market

Female Product in Tainan Night Market

Logistic System Logistic System --BeforeBefore

1 2 N43 ● ● ● ● ● ● ● ●

1 432 N● ● ● ● ● ●

Goods Purchase →Goods Return →

25

Logistic System Logistic System --AfterAfter

● ● ● ● ● ● ● ●1 2 N43

1 432 N● ● ● ● ● ● ●

logistic systemlogistic system

26

Goods Purchase →Goods Return →

Financial PerformanceFinancial Performance

I.I. Trend of RevenueTrend of Revenue

II.II. Trend of Gross Profit MarginTrend of Gross Profit Margin

III.III. Trend of Operating Profit MarginTrend of Operating Profit MarginIII.III. Trend of Operating Profit MarginTrend of Operating Profit Margin

IV.IV. Trend of Net Income MarginTrend of Net Income Margin

V.V. Dividend PolicyDividend Policy

VI.VI. 2015H1 Financial Report2015H1 Financial Report

27

Trend of RevenueTrend of Revenue(TWDm)

IFRS ROC GAAP

6,000

7,000

8,000

9,000

10,000

5,597 6,118 6,278

6,700 7,249

9,168

7,839

28

-

1,000

2,000

3,000

4,000

5,000

6,000

2,177 2,740 3,042 3,156 3,437

4,097

4,881 5,597

Trend of Gross Profit MarginTrend of Gross Profit Margin

IFRS ROC GAAP

30.00%

35.00%

40.00%

45.00%

25.60%25.90%26.80%28.70%28.20%28.20%29.20%28.70%

30.40%32.60%

35.40%

39.66%40.48% 40.78%

29

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%25.60%25.90%26.80%

Trend of Operating Profit MarginTrend of Operating Profit Margin

8.00%

10.00%

12.00%

6.83%

8.23%

9.76%10.33%

IFRS ROC GAAP

30

0.00%

2.00%

4.00%

6.00%

1.69%

3.22%4.27%

5.50%

3.89%4.21%4.85%

4.01%4.58%

5.70%

6.83%

Trend of Net Income MarginTrend of Net Income Margin

IFRS ROC GAAP

5.00%

6.00%

7.00%

8.00%

9.00%

4.91% 4.67%5.36%

6.47%

7.71%

8.43%8.74%

31

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

3.23%3.43%3.44%

4.91%

3.57%3.73%4.18%

3.49%

4.67%

Trend of Net IncomeTrend of Net Income(TWDm)

IFRS ROC GAAP

500

600

700

800

433

563

772

444

32

-

100

200

300

400

500

69 94 105 155 123 153

204 195

286 336

433 444

Dividend PolicyDividend Policy--MainlyMainly in Cash Dividend in Cash Dividend

4.75

6.03

8.22

7.4

6.0

7.0

8.0

9.0

EPS(after tax)EPS(after tax)EPS(after tax)EPS(after tax)

33

2.53.08 2.69 3.26

3.76

4.75

1.8 1.8 0.5

2.83.28

4.1

4.8

72% 58%19%

86% 87% 86% 80% 90%0.0

1.0

2.0

3.0

4.0

5.0 EPS(after tax)EPS(after tax)EPS(after tax)EPS(after tax)

cash dividendcash dividendcash dividendcash dividend

cash dividend cash dividend cash dividend cash dividend

payout ratiopayout ratiopayout ratiopayout ratio

201320122009 201020082007 20142011

Income Statements

Accounting Title 2015H1 2014H1

Operating revenue

Total operating revenue 5,083,199 4,128,560

Operating costs

Total operating costs 3,010,371 2,481,772

Gross profit (loss) from operations 2,072,828 1,646,788

Gross profit (loss) from operations 2,072,828 1,646,788

Operating expenses

Selling expenses

Total selling expenses 1,274,825 1,029,375

Administrative expenses

Total administrative expenses 272,978 230,290

Total operating expenses 1,547,803 1,259,665

Net operating income (loss) 525,025 387,123

Non-operating income and expenses

Other incomeOther income

Total other income 16,950 19,801

Other gains and losses

Other gains and losses, net -3,528 -1,429

Finance costs

Finance costs, net 3,076 3,317

Total non-operating income and expenses 10,346 15,055

Profit (loss) from continuing operations before tax 535,371 402,178

Tax expense (income)

Total tax expense (income) 91,326 69,273

Profit (loss) from continuing operations 444,045 332,905

Profit (loss) 444,045 332,905

Total comprehensive income 444,045 332,905

Basic earnings per share

Basic earnings (loss) per share from continuing operations 4.72 3.55

Total basic earnings per share 4.72 3.55

Diluted earnings per share

Diluted earnings (loss) per share from continuing operations 4.7 3.54

Total diluted earnings per share 4.7 3.54

Balance SheetAccounting Title 2015H1 2014H1 Accounting Title 2015H1 2014H1

Assets Liabilities

Current assets Current liabilities

Cash and cash equivalents Notes payable

Total cash and cash equivalents 873,376 990,219 Total notes payable 329,304 322,213

Notes receivable, net Accounts payable

Notes receivable, net 9,145 4,898 Total accounts payable 897,086 739,257

Accounts receivable, net Other payables

Accounts receivable, net 297,703 220,576 Total other payables 1,099,490 782,802

Other receivables Current tax liabilities 92,966 71,109

Other receivables, net 1,476 2,371 Other current liabilities

Inventories Advance receipts

Total inventories 1,826,825 1,433,237 Total advance receipts 13,078 13,522

Prepayments Long-term liabilities, current portion

Total prepayments 43,112 51,671 Total long-term liabilities, current portion 242,388 215,242

Other current assets Other current liabilities, others 18,275 12,193

Other current financial assets 9,254 0 Total other current liabilities 273,741 240,957

Total other current assets 9,254 0 Total current liabilities 2,692,587 2,156,338

Total current assets 3,060,891 2,702,972 Non-current liabilities

Non-current assets Long-term borrowings

Property, plant and equipment Total long-term borrowings 84,220 158,768

Total property, plant and equipment 1,650,274 1,312,962 Deferred tax liabilitiesTotal property, plant and equipment 1,650,274 1,312,962 Deferred tax liabilities

Deferred tax assets 17,731 11,270 Total deferred tax liabilities 2,574 0

Other non-current assets Other non-current liabilities

Guarantee deposits paid 162,767 146,111 Net defined benefit liability, non-current 1,240 7,123

Long-term prepaid rents 114,327 100,246 Guarantee deposits received 4,733 3,118

Other non-current assets, others Total other non-current liabilities 5,973 10,241

Total other non-current assets, others 10,071 11,033 Total non-current liabilities 92,767 169,009

Total other non-current assets 287,165 257,390 Total liabilities 2,785,354 2,325,347

Total non-current assets 1,955,170 1,581,622 Equity

Total assets 5,016,061 4,284,594 Share capital

Ordinary share 941,131 929,073

Stock dividend to be distributed 90,411 60,291

Total capital stock 1,031,542 989,364

Capital surplus

Total capital surplus, additional paid-in capital 394,551 346,318

Total capital surplus 394,551 346,318

Retained earnings

Legal reserve 357,480 284,378

Total unappropriated retained earnings (accumulated deficit) 447,134 339,187

Total retained earnings 804,614 623,565

Total equity 2,230,707 1,959,247

Total liabilities and equity 5,016,061 4,284,594

Equivalent issue shares of advance receipts for ordinary share 0 0

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

Statements of Cash FlowsAccounting Title 2015H1 2014H1 Accounting Title 2015H1 2014H1

Cash flows from (used in) operating activities, indirect method Interest receive 1,243 1,009

Profit (loss) from continuing operations before tax 535,371 402,178 Interest paid -3,076 -3,317

Profit (loss) before tax 535,371 402,178 Income taxes refund (paid) -110,869 -72,518

Adjustments Net cash flows from (used in) operating activities 597,853 653,405

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

Depreciation expense 172,040 137,441 Acquisition of property, plant and equipment -481,576 -221,204

Interest expense 3,272 3,658 Proceeds from disposal of property, plant and equipment 0 0

Interest income -1,243 -1,009 Increase in refundable deposits -5,215 -19,081

Loss (gain) on disposal of property, plan and equipment 0 0 Increase in other financial assets -9,254 0

Total adjustments to reconcile profit (loss) 174,069 140,090 Decrease in other non-current assets 890 1,844

Changes in operating assets and liabilities Other investing activities 132,132 -11,493

Changes in operating assets Net cash flows from (used in) investing activities -363,023 -249,934

Decrease (increase) in notes receivable -807 2,401Cash flows from (used in) financing activities

Decrease (increase) in accounts receivable 135,545 67,587 Proceeds from long-term debt 0 10,000

Decrease (increase) in other receivable 9,906 5,068 Repayments of long-term debt -134,805 -123,743

Decrease (increase) in inventories -61,212 -15,758 Increase in guarantee deposits received 1,600 0

Decrease (increase) in prepayments 19,111 -12,371 Cash dividends paid 0 0

Total changes in operating assets 102,543 46,927 Other financing activities 0 0

Changes in operating liabilities Net cash flows from (used in) financing activities -133,205 -113,743

Increase (decrease) in notes payable -115,516 8,240Net increase (decrease) in cash and cash equivalents 101,625 289,728

Increase (decrease) in accounts payable -30,020 82,314Cash and cash equivalents at beginning of period 771,751 700,491

Increase (decrease) in other payable 44,298 48,884Cash and cash equivalents at end of period 873,376 990,219

Increase (decrease) in receipts in advance 438 -1,155Cash and cash equivalents reported in the

statement of financial position873,376 990,219

Increase (decrease) in other current liabilities 224 1,411

Increase (decrease) in net defined benefit liability

-852 -658

Total changes in operating liabilities -101,428 139,036

Total changes in operating assets and liabilities 1,115 185,963

Total adjustments 175,184 326,053

Cash inflow (outflow) generated from operations 710,555 728,231

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