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104 Interim / Quarterly Report 2018

Nov 5, 2018

52296_rns_2018-11-05_dc0a0f2c-b11a-4cae-881b-9985291f4c20.pdf

Interim / Quarterly Report

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104 Corporation (TSE:3130)

A Total Solution Provider in the Chinese HR Services Market

November 2018

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

  • Services and Products

  • Financial Review and Dividend Policy

  • 104 Value Map

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In 1996, 104 was established

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“For jobseekers, we don’t just help find jobs—we forge careers; and for employers, we don’t just help find workers—we manage talent.”

by Rocky Yang, founder and chairman of 104

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Company Profile

Market Position Core Competence Financial Strengths

  • 104 Job Bank was  Strong database:  Zero debt. established: 1996. 7. 82 million resumes, 75% college  Solid NT$ 2.2 billion graduated/ above, cash position.

  • First job bank to IPO in 343K corp. customers. (Jun. 2018)

  • Taiwan: 2006. (Sep. 2018)  Proven capability to

  • First job bank in Taiwan  Comprehensive range of generate cash even in

  • to get ISO 27001 and HR related services. difficult economic

  • BS 10012 + ISO 29100 periods.

  • accreditation.  Competitive candidate matching and job  High satisfaction &

  • recommendation recognition of 104

  • ISO/IEC 27001 system. brand & services.

  • (Information Security Management System) BS 10012 (Personal Information Management System) ISO/IEC 29100 (Privacy Framework)

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Source: Company data

Services and Products

Business Segments

Mobile Apps

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Online For Job Seekers

Vast, easy, & accessible platform

Services Career map & value added services
104 Learn
Training Program
Posting Services
Job-Search App
104 Case 104 Tutor
Case Outsourcing Tuition Posting
Posting Services Services
104 Job Bank
Job Posting HR Academy
Services
HR Solutions
& Consultancy
104 Ads
HR Advertisement 104 Hunter
Services
Executive Search Platform &
Talent-Search App
Services Consultation
Services
For Corporate Users
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  • Large and diversified resume pool

  • Variety of integrated HR services

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Source: Company data

Revenue Performance

Consolidated Revenue

Consoate evenue evenue evenue evenue (Unit: NT$’000) (Unit: NT$’000) (Unit: NT$’000) (Unit: NT$’000)
Time
Amount
Quarterly Revenue YoY Accumulated Revenue YoY
Q3 2018 Q3 2017 2018 2017
Total 414,280 400,865 3.35% 1,196,343 1,156,455 3.45%

Quarterly Revenue

(Unit: NT$/M)

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460
415 414
420
401
395
383 384
376
380 367
361
351
344
340
300
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
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Source: Company data

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Unaudited Operating Performance – Q3 2018

Q3 2018 Unaudited Performance

(Unit: NT$’000)

Q3 2018
(unaudited)
Q3 2017
(reviewed)
YoY YTD 2018
(unaudited)
YTD 2017
(reviewed)
YoY
Operating Revenue 414,280 400,865 3.35% 1,196,343 1,156,455 3.45%
Operating Income 95,963 107,018 (10.33%) 262,316 282,393 (7.11%)
Pre-tax Income 103,269 112,575 (8.27%) 282,799 300,094 (5.76%)
OPM
23.2%
26.7%
21.9%
24.4%
23.2% 26.7% 21.9% 24.4%

The decreases of operating income above were mainly affected by the increase in related spending for optimizing existing services and accelerating new product development.

Source: Company data

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Q2 2018 Income Statements

Q2 2018 Income Statements Q2 2018 Income Statements Q2 2018 Income Statements Q2 2018 Income Statements Q2 2018 Income Statements Q2 2018 Income Statements
(Unit: NT$’000, except for EPS)
Q2 2018 % Q2 2017 % YoY
Operating Revenue 414,945 100% 394,909 100% 5.07%
OperatingCosts 41,256 9.9% 36,439 9.2% 13.22%
Gross Profit 373,689 90.1% 358,470 90.8% 4.25%
OperatingExpenses 279,474 67.4% 259,016 65.6% 7.90%
SellingExpenses 156,466 37.7% 136,035 34.4% 15.02%
Administrative Expenses 44,073 10.6% 45,246 12.0% (2.59%)
Research & Development Expenses 78,935 19.0% 77,735 19.7% 1.54%
Operating Income 94,215 22.7% 99,454 25.2% (5.27%)
Non-OperatingIncome and Expenses 8,023 1.9% 4,976 1.3% 61.23%
Income Before Income Tax 102,238 24.6% 104,430 26.4% (2.10%)
Income Tax Expenses 20,229 4.9% 17,869 4.5% 13.21%
Net Income 82,009 19.8% 86,561 21.9% (5.26%)
Basic EPS 2.47 2.61

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Source: Company data

H1 2018 Income Statements

H1 2018 Income Statements H1 2018 Income Statements H1 2018 Income Statements H1 2018 Income Statements H1 2018 Income Statements H1 2018 Income Statements
(Unit: NT$’000, except for EPS)
H1 2018 % H1 2017 % YoY
Operating Revenue 782,063 100% 755,590 100% 3.50%
OperatingCosts 79,056 10.1% 69,419 9.2% 13.88%
Gross Profit 703,007 89.9% 686,171 90.8% 2.45%
OperatingExpenses 536,654 68.6% 510,796 67.6% 5.06%
SellingExpenses 298,136 38.1% 289,573 38.3% 2.96%
Administrative Expenses 83,234 12.0% 86,526 12.0% (3.80%)
Research & Development Expenses 155,284 19.9% 134,697 17.8% 15.28%
Operating Income 166,353 21.3% 175,375 23.2% (5.14%)
Non-OperatingIncome and Expenses 13,177 1.7% 12,144 1.6% 8.51%
Income Before Income Tax 179,530 23.0% 187,519 24.8% (4.26%)
Income Tax Expenses 34,454 4.4% 29,824 3.9% 15.52%
Net Income 145,076 18.6% 157,695 20.9% (8.00%)
Basic EPS 4.37 4.77

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Source: Company data

H1 2018 Balance Sheets

(Unit: NT$’000) (Unit: NT$’000) (Unit: NT$’000) (Unit: NT$’000) (Unit: NT$’000)
2018.6.30 % 2017.6.30 %
Cash & Cash Equivalents 2,206,523 87% 2,192,124 87%
NR & AR,Net 57,807 2% 43,652 2%
Other Receivables 11,427 - 10,246 -
Total Current Assets 2,290,125 90% 2,258,996 90%
Property,Plant and Equipment 212,767 9% 217,026 9%
Intangible Assets 4,037 - 6,993 -
Total Assets 2,531,956 100% 2,506,164 100%
NP,AP and Other Payables 605,351 23% 612,334 24%
Contract Liability- Current 446,339 18% - -
Deferred Revenue - - 423,832 17%
Total Current Liabilities 1,161,026 46% 1,129,201 45%
Total Liabilities 1,167,578 46% 1,132,994 45%
Total Equity 1,364,378 54% 1,373,170 55%

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Source: Company data

H1 2018 Cash Flow Statements

H1 2018
H1 2017
Net Cash Flows from Operating Activities
179,203
222,676
Income Before Tax
179,530
187,519
Depreciation and Amortization Expenses
23,019
29,015
Other Account Payable
(39,200)
(16,681)
Other OperatingSources(Uses)
15,854
22,823
Net Cash Flows from(Used in) Investing Activities
(16,483)
(17,715)
Acquisition/Disposal of Property, Plant and Equipment
(13,196)
(17,122)
Acquisition of Intangible Assets
(2,796)
(1,026)
Other InvestingSources
(491)
433
Net Cash Flows Used in Financing Activities
-
-
Effect of Exchange Rate Changes
333
(1,667)
Net Increase in Cash and Cash Equivalents
163,053
203,294
(Unit: NT$’000)
H1 2018
H1 2017
Net Cash Flows from Operating Activities
179,203
222,676
Income Before Tax
179,530
187,519
Depreciation and Amortization Expenses
23,019
29,015
Other Account Payable
(39,200)
(16,681)
Other OperatingSources(Uses)
15,854
22,823
Net Cash Flows from(Used in) Investing Activities
(16,483)
(17,715)
Acquisition/Disposal of Property, Plant and Equipment
(13,196)
(17,122)
Acquisition of Intangible Assets
(2,796)
(1,026)
Other InvestingSources
(491)
433
Net Cash Flows Used in Financing Activities
-
-
Effect of Exchange Rate Changes
333
(1,667)
Net Increase in Cash and Cash Equivalents
163,053
203,294
(Unit: NT$’000)
H1 2018
H1 2017
Net Cash Flows from Operating Activities
179,203
222,676
Income Before Tax
179,530
187,519
Depreciation and Amortization Expenses
23,019
29,015
Other Account Payable
(39,200)
(16,681)
Other OperatingSources(Uses)
15,854
22,823
Net Cash Flows from(Used in) Investing Activities
(16,483)
(17,715)
Acquisition/Disposal of Property, Plant and Equipment
(13,196)
(17,122)
Acquisition of Intangible Assets
(2,796)
(1,026)
Other InvestingSources
(491)
433
Net Cash Flows Used in Financing Activities
-
-
Effect of Exchange Rate Changes
333
(1,667)
Net Increase in Cash and Cash Equivalents
163,053
203,294
(Unit: NT$’000)
H1 2018 H1 2017
Net Cash Flows from Operating Activities 179,203
222,676
Income Before Tax 179,530
187,519
Depreciation and Amortization Expenses 23,019
29,015
Other Account Payable (39,200) (16,681)
Other OperatingSources(Uses) 15,854
22,823
Net Cash Flows from(Used in) Investing Activities (16,483) (17,715)
Acquisition/Disposal of Property, Plant and Equipment (13,196) (17,122)
Acquisition of Intangible Assets (2,796) (1,026)
Other InvestingSources (491) 433
Net Cash Flows Used in Financing Activities - -
Effect of Exchange Rate Changes 333
(1,667)
Net Increase in Cash and Cash Equivalents 163,053
203,294

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Source: Company data

Dividend Policy

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(Unit: NT$)
14 120%
EPS (LHS) DPS (LHS) Payout Ratio (RHS)
12
100%
10
8
80%
6
4
60%
2
0 40%
2010 2011 2012 2013 2014 2015 2016 2017
2010 2011 2012 2013 2014 2015 2016 2017
EPS 7.72 6.71 5.67 7.46 9.41 9.99 12.04 9.60
DPS 6.0 6.0 4.55 6.0 7.0 8.0 10.8 9.60
Payout Ratio (%) 78% 89% 87% 82% 75% 80% 90% 100%
Avg. Stock Price 112.6 99.23 76.06 90.06 122.24 151.94 139.15 151.47
Yield Rate (%) 5.33% 6.05% 5.98% 6.66% 5.73% 5.27% 7.76% 6.34%
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Cash dividends distribute date:2018/08/08

Source: TWSE & Company data

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104’s Mission

50% profit margin Higher ageing rate Elderly care platform to support current workers and families

65 yrs old

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Job & resume material value Career, talent, & knowledge management Lowest birth rate Enable children to find their gifts and compete

15 yrs old

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C M Cloud Mobile

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O S
Open Social
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104 Career Platform Management

Professional Development Through Adoption of Open APIs to Enrich Services Social Networking and Achieve a Triple-Win

https://clazzrooms.com/

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https://plus.104.com.tw/

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Third Party Service Providers

https://beagiver.com/

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https://senior.104.com.tw/

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https://www.104.com.tw/

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In House Application Development

https://case.104.com.tw/ https://learn.104.com.tw/

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https://hunter.104.com.tw/

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https://tutor.104.com.tw/

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HR Capital Management Solutions

On-Premise & Customized for Large Companies

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eHRMS

人力資源管理系統

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Third Party Deploy Define Service Talent Talent Providers http://ehr.104.com.tw/ Develop Discover In House Talent Talent Application Development

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HR Portal

Cloud-Based & Standardized for SME

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For K-12

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World of Work

https://wow.104.com.tw/

Our Q&A Platform : Children can explore the world of work based on 104’s job data and ask career-related questions to volunteer workers.

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https://kids.104.com.tw/

Our Kid Talent Platform : enables children, parents, teachers and experts to explore, analyze, record and demonstrate children’s gifts.

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Our Web Gallery of Arts : A virtual art gallery for children’s creative arts exhibition and talent showcase.

https://star.104.com.tw/

Resources to Explore Talent Activities, contests and learning programs

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For Seniors

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Senior Care Bank

https://104careu.104.com.tw/

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Our in-home care professionals offer

  • Health care and coaching services for seniors/patients

  • Coaching and consulting services for family members/caregivers

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Tailor-Made Solutions

Care Plan Execution

Integrated-Care Team

Monitoring & Evaluation

  • Medical professionals

  • Health assessment

  • Caring & assistance

  • Therapists

  • Care plan development

  • Coaching & consulting

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Thank you For more information, please contact:

Brenda Shih, VP, Chairman’s Office 886-2-2912-6104 ext. 9688 / [email protected]

Kendrah Chen, IR

886-2-2912-6104 ext. 9692 / [email protected]

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