104 — Interim / Quarterly Report 2015

Aug 19, 2015

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® 104 人力銀行

104 Corporation (TSE:3130)

A Total Solution Provider in Chinese HR Services Market

August 2015

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Safe Harbor Statement

This presentation contains some forward-looking statements that are subject to substantial risks and uncertainties. Typically, these statements contain words such as “anticipate," “believe,” “could,” “estimate,” “expect,” “intend,” “plan,” ‘’forecast,” “project,” “predict,” “potential,” “continue,” “may,” “should,” “will” and “would” or similar words. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events; and actual results may differ materially from those expressed or implied by such statements.

You should be cautioned that the forward-looking statements are not the guarantees of our future performance. The forward-looking statements contained in this presentation are made only as of the date of this presentation and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law.

This presentation and the information contained herein is the property of 104 Corporation.

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Agenda

Company Profile Market Information Management Team Products and Services Financial Review and Dividend Policy

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2nd Generation Services and Products

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Company Profile

Market Position

Core Competence

Financial Strengths

• Zero debts.

 104 Job Bank was  Strong database:  Zero debts. established: 1996. 6 million resumes, 75% college  Solid cash positions of graduated/ above, NT$1.8 billion.  First IPO Job Bank 281K corp. customers. company in Taiwan:  Strong capability to Strong capability to 2006.

 Strong capability to Strong capability to 2006.  Online job opportunities generate cash even in (July 2015): 677K, represent difficult economic  First Job Bank in Taiwan an increase of 18% YoY period. to get ISO 27001.  Comprehensive range of  High satisfaction & HR related services. recognition of 104 brand & services.

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Source: Company data

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Leading Market Role

Comparing competitors, 104 is the most frequent searched keyword on Google.

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Management Team

Rocky Yang – Founder and Chairman

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BA, English Literature, National Cheng-Kong University, Taiwan. 1992-1994, Vice President, Sunrex Computer Corporation (TSE: 2387). 1985-1991, Sales Manager, American Research Corporation.

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Simon Juan – President

MA, European Studies, Katholieke Universiteit Leuven, Belgium BS, Naval Architecture Engineering, National Taiwan Ocean University. 1998-2000, Sales Director-China/HK, Philips China, Digital Video Systems. 1995-1997, Marketing Manager-Far East, Philips Digital Video Systems. 1989-1990, Sales Manager, American Research Corporation.

Steven Su – G.M. of Executive Search and Temporary Staffing Business Group and Chief Legal Officer

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Master of Laws, Law Center, University of Houston, USA. 1996-2000, Attorney-at-Law, Su and Associates.

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1993-1996, Manager-Administration, Taipei Computer Association. 1989-1992, Manager, American Research Corporation.

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Source: Company data

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History of Business Expansion

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Unit: NT$’000
104+ beta
Dream Cradle
Mobile app
104 Consulting
104 Mini Job, 104 Super
Listed in TSE & expanded
into China
104 HR Consulting
Inc. /Temp Staffing
104
Market 104 Case
104 Tutor, Boss
Learn 104
No. 1 in Taiwan Hunter, eHR
Market
104 Job Bank
established
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Source: Company data

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Full Range Services and Products

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Job Banks 104 Ads 104 Learn Large jobs base for job
seekers with easy &
accessible platform.
Job Posting HR Ads Training Program Career map & value
Services Services Posting Services added services for job
seekers.
104 Case 104 Tutor
Large and diversified
resumes pool for
corporate users.
Outsourcing Case Tuition Posting
Posting Services Services
Integrated matching &
HR Academy 104 Hunter 104 Temp
selecting platform.
Variety of integrated
HR Solutions Executive Search Temporary services satisfy users’
& Consultancy Services Staffing needs.
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Source: Company data

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Current Mobile Services

Total population in Taiwan = 23,379,129

Total Internet users in Taiwan = 16,450,000

Total Mobile Internet users = 11,070,000

Current 104 Mobile app users = 2,700,000

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Source: Company data

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Revenue Trend

Unaudited Revenue Trend (thousands NTD):

IFRS July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Consolidated 223,314 214,964 212,337 209,249 200,142 220,774 199,075 180,730 227,242 213,860 236,761 227,788 225,871 YoY 14.46% 7.00% 9.55% 12.95% 8.68% 18.71% -6.83% 14.06% 22.32% 6.31% 15.13% 4.47% 1.15% Online 102,624 94,803 91,695 90,828 84,488 102,415 83,469 70,456 110,171 95,088 122,187 101,458 108,198 Online-YoY 8.15% -2.40% 7.06% 3.64% 9.29% 20.26% 20.29% -14.96% 14.91% 3.83% 31.77% 4.62% 5.43% Consulting 120,690 120,161 120,641 118,421 115,654 118,359 115,606 110,274 117,071 118,722 114,574 126,330 117,673 Consulting-YoY 20.44% 15.80% 11.51% 21.31% 8.23% 17.40% -19.87% 45.85% 30.23% 8.38% 1.46% 4.34% -2.50%

Unit: NT$’000

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Source: Company data

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Analysis of Revenue Performances

Online Services:

• Job Bank Listing / Ads

• Value-added Services

Consulting Services:

• Head-Hunting

• Temp-Staffing

• HR Academy

Revenue by Business Sectors, 2015H1

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Operating Consulting Online Operating
margin: 55% 45% margin:
8.6% 48.0%
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Quarterly Unaudited Consolidated Revenue

(Unit: NTD’000)

IFRS	**2015 Q2 **	**2015 Q1 **	**2014Q4 **	2014Q3	**2014Q2 **
Consolidated	678,408	607,047	630,166	650,615	624,870
YoY	8.57%	8.8%	13.46%	10.31%	12.94%
Online	318,732	264,096	277,731	289,123	281,284
YoY	13.31%	6.44%	11.05%	4.12%	12.20%
Consulting	359,676	342,951	352,434	361,491	343,586
YoY	4.68%	10.71%	15.44%	15.80%	13.56%

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Source: Company data

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2015 Q2 Income Statement

15 Q2 Income Statement
(Unit: NTD ‘000) 2015 Q2 % 2014 Q2 % Net Sales 678,990 100% 624,866 100% Cost 320,837 47% 314,617 50%	YoY Change 8.66% 1.98%
Gross Profit 358,153 53% 310,249 50%	15.44%
Operating Expenses 239,273 35% 212,715 34%	12.49%
Sales & Marketing 158,846 23% 144,101 23% General & Administrative 33,591 5% 26,057 4% Research & Development 46,836 7% 42,557 7%	10.23% 28.91% 10.05%
Operating Income 118,880 18% 97,534 16%	21.89%
Net Non-Operating Income (Loss) 5,592 1% 4,908 1% Income Before Tax 124,472 19% 102,442 17%	13.94% 21.50%
Net Income 106,425 16% 85,822 14%	24.01%
Other comprehensive Income (733) - (981) - NetcomprehensiveIncome 105,692 16% 84,841 14%	- 24.58%
Parent Shareholding 106,025 84,694 MinorityInterest 400 1,128

**As of 30th June, 2015, the company had 33,111.7 thousand outstanding shares.

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Source: Company data

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2015 H1 Income Statement

(Unit: NTD ‘000) 2015 H1 % 2014 H1 % Net Sales 1,286,082 100%1,182,770 100% Cost 629,334 49% 607,232 51%	YoY Change 8.73% 3.64%
Gross Profit 656,748 51% 575,538 49%	14.11%
Operating Expenses 460,659 36% 415,371 35%	10.90%
Sales & Marketing 310,948 24% 286,167 24% General & Administrative 61,822 5% 50,363 4% Research & Development 87,889 7% 78,841 7%	8.66% 22.75% 11.48%
Operating Income 196,089 15% 160,167 14%	22.43%
Net Non-Operating Income (Loss) 9,277 1% 7,584 - Income Before Tax 205,366 16% 167,751 14%	22.32% 22.42%
Net Income 174,429 14% 139,357 12%	25.17%
Other comprehensive Income (1,127) - (1,347) - Net comprehensiveIncome 173,302 14% 138,010 12%	- 25.57%
Parent Shareholding 174,569 136,959 MinorityInterest (140) 2,398

**As of 30th June, 2015, the company had 33,111.7 thousand outstanding shares.

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Source: Company data

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2015 Q2 Balance Sheet

Unit: NTD’000	06. 30, 2015		06. 30, 2014
	Amount	%	Amount	%
Cash & Cash Equivalents	1,844,967	79%	1,589,048	77%
AR & NR	243,732	10%	227,009	11%
Total Current Assets	2,109,373	89%	1,864,793	90%
Net PP & E	201,259	9%	162,808	8%
Intangible Assets	12,487	1%	19,449	1%
Total Assets	2,354,060	100%	2,076,724	100%
AP/NP/Other Payables	611,557	26%	526,204	25%
Sales Revenue Received in Advance	354,099	15%	314,342	15%
Total Current Liabilities	1.072,259	46%	913,989	44%
Total Liabilities	1,074,857	46%	918,459	44%
Shareholders' Equity	1,279,203	54%	1,158,265	56%

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Source: Company data

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2015 H1 Cash Flows

Unit: NTD’000	2015 H1	2014 H1
	Amount	Amount
From Operating Activities	181,132	175,517
Income Before Tax	205,366	167,751
Depreciation and Amortization	36,695	30,351
Other Account Payable	(79,693)	(20,037)
From Investing Activities	(51,955)	(17,693)
Acquisitions of PP&E	(47,245)	(14,177)
Acquisitions of Intangible Assets	(4,817)	(6,471)
Other Investing Sources / (Uses)	107	2,955
Cash and cash equivalents at the beginning of January 1 2015	1,716,860	1,432,549
Cash and cash equivalents at the end of June 30 2015	1,844,967	1,589,048

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Source: Company data

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Dividend Policy

10.00												100.00%
9.00												90.00%
8.00												80.00%
7.00												70.00%
5.00 6.00												50.00% 60.00%		EPS Dividend Payout Per Share
0.00 1.00 2.00 3.00 4.00												0.00% 10.00% 20.00% 30.00% 40.00%		Dividend Payout Ratio
	1 2007		2 2008	3 2009	4 2010		5 2011	6 7 8 2012 2013 2014
Fiscal Year			2007		2008		2009		2010	2011		2012	2013		2014
Net Income			245,417		238,328		171,542		261,328	228,164	170,855		241,423		310,589
Cash Dividend			191,363		142,763		154,237		203,996	204,079	147,709		197,991		231,782
Dividend	Payout Ratio			78%	60%		90%		78%	89%		87%		82%	75%
Average Stock		Price		158.5	99.5		73.3		112.6	99.23		76.06		90.06	122.2
Yield Rate (%)				3.58%	4.25%		6.23%		5.33%	6.05%		5.98%		6.66%	5.73%
Employee Cash		Bonus		26,702	26,356		18,424		28,168	24,614		18,204	26,074		33,544

Source: Company data

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Concept of 2[nd] Generation Products and Services

C.M.O.S.

C：Cloud

M：Mobile

O： Open Platform S： Social Networking

Open Social Mobile Cloud

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2nd Generation Services and Products Roadmap

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Individual Corporate
Customers Customers
Employee
Dream HR
104 + Interactive
Cradle Portal
Platform
2.0
Generation
Green Career Talents
Reserve Job Bank
Tutor Groups Database
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104
Outsourcing
1.0
Job Bank
Generation
104 Tutor/
104 Learn
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Consulting/ HR
Solutions
Headhunter/
Temp-Staffing
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104+: CMOS Emphasis

• A social open platform provides a life-time career consulting service.

 Personal Brand Report: Members could explore and develop their value and influence by sharing their knowledge and experiences.

 Reasonable Matching Mechanism: Suitable jobs will find our members.  Expanding Networks and Connections: Members can learn from senior people & interact with experts easily.

Website: http://plus.104.com.tw/

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104+ Endorsement

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104+ Brand Ranking

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104+ Hard Skill Testing

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104+ Soft Skill Testing

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104+ Social Networking Credit

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104+ Market Value

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Dream Cradle

• A crowd-funding platform: providing members to reach, to acquire funding opportunities/ resources and, to seek assistance from helpers

• Start up founders or dreamers can achieve their dreams and projects by receiving various kinds of resources and help.

• The successful funding amount achieves approximately NT$13 Million.

Website: http://www.an9.com.tw/Dream/DreamFwdAction_viewDreamTiles.action #

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Green Tutor

 A real-time learning platform: it encourages children to ask questions and think independently.

 The platform will aggregate to help the next generation in order to have better learning environment.

http://xn--fct27txmu.tw/Index/IndexFwdAction_main.action

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HR Portal

• HR management services: including talent selection, recruitment, training, managing

• A portal allows employees to interact with co-workers, supervisors and employer in a more effective and efficient way.

• SMB contributes 85% of enterprises in Taiwan. HR Portal is targeting these customers to generate greater business opportunity.

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Thank you

For more information, please contact: Brenda Shih, CIO 886-2-2912-6104 ext. 9688 brenda.shih@104.com.tw

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Vera Su, IR 886-2-2912-6104 ext. 9698 vera.su@104.com.tw

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