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 4,177 4,177 (October, 2015)(October, 2015)

Number of storesNumber of stores 123 123 (November, 2015)(November, 2015)

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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

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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

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

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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 123 Stores in Taiwan

Central Taiwan36 stores

Northern Taiwan38 stores

Southern Taiwan49 stores

9

Competitive AdvantagesCompetitive Advantages

I.I. Largest Market ShareLargest Market Share

II.II. Explicit Market DistinctionExplicit Market Distinction

10

Largest Market Share Largest Market Share 72% 72% in the marketin the market

80

100

120123

0

20

40

60

POYA MIRADA A+1 J-MART SEASONS

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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

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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

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Optimize Product Display Optimize Product Display

17

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

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Undeveloped market: 228 stores

57%57%

Developed market: 172 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

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

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Logistic System Logistic System --BeforeBefore

1 2 N43 ● ● ● ● ● ● ● ●

1 432 N● ● ● ● ● ●

Goods Purchase →Goods Return →

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Logistic System Logistic System --AfterAfter

● ● ● ● ● ● ● ●1 2 N43

1 432 N● ● ● ● ● ● ●

logistic systemlogistic system

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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. 2015Q3 Financial Report2015Q3 Financial Report

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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 8,762

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-

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% 41.35%

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%

10.92%

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

6.00%

7.00%

8.00%

9.00%

10.00%

5.36%

6.47%

7.71%8.43%

9.22%

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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%5.36%

Trend of Net IncomeTrend of Net Income(TWDm)

IFRS ROC GAAP

500

600

700

800

433

563

772 723

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-

100

200

300

400

500

69 94 105 155 123 153

204 195

286 336

433

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)

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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 2015Q3 2014Q3

Operating revenue

Total operating revenue 7,839,498 6,595,713

Operating costs

Total operating costs 4,597,663 3,905,917

Gross profit (loss) from operations 3,241,835 2,689,796

Gross profit (loss) from operations 3,241,835 2,689,796

Operating expenses

Selling expenses

Total selling expenses 1,980,122 1,642,325

Administrative expenses

Total administrative expenses 405,988 378,640

Total operating expenses 2,386,110 2,020,965

Net operating income (loss) 855,725 668,831

Non-operating income and expenses

Other incomeOther income

Total other income 26,107 29,426

Other gains and losses

Other gains and losses, net -5,893 -2,380

Finance costs

Finance costs, net 4,716 5,126

Total non-operating income and expenses 15,498 21,920

Profit (loss) from continuing operations before tax 871,223 690,751

Tax expense (income)

Total tax expense (income) 148,421 118,404

Profit (loss) from continuing operations 722,802 572,347

Profit (loss) 722,802 572,347

Total comprehensive income 722,802 572,347

Basic earnings per share

Basic earnings (loss) per share from continuing operations 7.6 6.04

Total basic earnings per share 7.6 6.04

Diluted earnings per share

Diluted earnings (loss) per share from continuing operations 7.57 6.02

Total diluted earnings per share 7.57 6.02

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Balance SheetAccounting Title 2015Q3 2014Q3 Accounting Title 2015Q3 2014Q3

Assets Liabilities

Current assets Current liabilities

Cash and cash equivalents Notes payable

Total cash and cash equivalents 771,947 776,551 Total notes payable 488,339 470,426

Notes receivable, net Accounts payable

Notes receivable, net 5,152 4,874 Total accounts payable 997,706 852,576

Accounts receivable, net Other payables

Accounts receivable, net 484,838 367,030 Total other payables 443,888 345,434

Other receivables Current tax liabilities 65,769 63,658

Other receivables, net 2,880 1,428 Other current liabilities

Inventories Advance receipts

Total inventories 1,916,706 1,595,829 Total advance receipts 11,148 12,133

Prepayments Long-term liabilities, current portion

Total prepayments 42,964 90,127 Total long-term liabilities, current portion 349,488 286,923

Other current assets Other current liabilities, others 20,666 16,462

Other current financial assets 9,254 0 Total other current liabilities 381,302 315,518

Total other current assets 9,254 0 Total current liabilities 2,377,004 2,047,612

Total current assets 3,233,741 2,835,839 Non-current liabilities

Non-current assets Long-term borrowings

Property, plant and equipment Total long-term borrowings 345,021 297,293

Total property, plant and equipment 1,676,375 1,461,141 Deferred tax liabilitiesTotal property, plant and equipment 1,676,375 1,461,141 Deferred tax liabilities

Deferred tax assets 17,676 13,070 Total deferred tax liabilities 2,574 0

Other non-current assets Other non-current liabilities

Guarantee deposits paid 199,291 152,998 Net defined benefit liability, non-current 808 6,493

Long-term prepaid rents 101,988 79,806 Guarantee deposits received 3,923 3,118

Other non-current assets, others Total other non-current liabilities 4,731 9,611

Total other non-current assets, others 9,723 10,351 Total non-current liabilities 352,326 306,904

Total other non-current assets 311,002 243,155 Total liabilities 2,729,330 2,354,516

Total non-current assets 2,005,053 1,717,366 Equity

Total assets 5,238,794 4,553,205 Share capital

Ordinary share 952,774 941,131

Stock dividend to be distributed

Total capital stock 952,774 941,131

Capital surplus

Total capital surplus, additional paid-in capital 473,319 394,551

Total capital surplus 473,319 394,551

Retained earnings

Legal reserve 357,480 284,378

Total unappropriated retained earnings (accumulated deficit) 725,891 578,629

Total retained earnings 1,083,371 863,007

Total equity 2,509,464 2,198,689

Total liabilities and equity 5,238,794 4,553,205

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 2015Q3 2014Q3 Accounting Title 2015Q3 2014Q3

Cash flows from (used in) operating activities, indirect method Interest receive 1,425 1,235

Profit (loss) from continuing operations before tax 871,223 690,751 Interest paid -4,716 -5,126

Profit (loss) before tax 871,223 690,751 Income taxes refund (paid) -195,106 -130,900

Adjustments Net cash flows from (used in) operating activities 949,873 900,594

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

Depreciation expense 259,453 213,956 Acquisition of property, plant and equipment -581,803 -460,527

Interest expense 4,716 5,126 Proceeds from disposal of property, plant and equipment 143,100 121

Interest income -1,425 -1,235 Increase in refundable deposits -41,739 -25,968

Loss (gain) on disposal of property, plan and equipment -100 -116 Increase in other financial assets -9,254 0

Total adjustments to reconcile profit (loss) 262,644 217,731 Decrease in other non-current assets 1,238 2,526

Changes in operating assets and liabilities Other investing activities 1,331 8,805

Changes in operating assets Net cash flows from (used in) investing activities -487,127 -475,043

Decrease (increase) in notes receivable 3,186 2,425Cash flows from (used in) financing activities

Decrease (increase) in accounts receivable -51,590 -78,867 Proceeds from long-term debt 480,000 290,000

Decrease (increase) in other receivable 8,502 6,011 Repayments of long-term debt -246,904 -193,537

Decrease (increase) in inventories -151,093 -178,350 Increase in guarantee deposits received 790 0

Decrease (increase) in prepayments 19,259 -50,827 Cash dividends paid -696,436 -445,954

Total changes in operating assets -171,736 -299,608 Other financing activities 0 0

Changes in operating liabilities Net cash flows from (used in) financing activities -462,550 -349,491

Increase (decrease) in notes payable 43,519 156,453Net increase (decrease) in cash and cash equivalents 196 76,060

Increase (decrease) in accounts payable 70,600 195,633Cash and cash equivalents at beginning of period 771,751 700,491

Increase (decrease) in other payable 72,181 72,577Cash and cash equivalents at end of period 771,947 776,551

Increase (decrease) in receipts in advance -1,492 -2,544Cash and cash equivalents reported in the

statement of financial position771,947 776,551

Increase (decrease) in other current liabilities 2,615 5,680

Increase (decrease) in net defined benefit liability

-1,284 -1,288

Total changes in operating liabilities 186,139 426,511

Total changes in operating assets and liabilities 14,403 126,903

Total adjustments 277,047 344,634

Cash inflow (outflow) generated from operations 1,148,270 1,035,385

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www.poya.com.tw/en/