104 — Investor Presentation 2016

Jun 21, 2016

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104 Corporation (TSE:3130)

A Total Solution Provider in Chinese HR Services Market

June 2016

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

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Services and Products Financial Review and Dividend Policy

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104 Value Map

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Company Profile

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Market Position Core Competence Financial Strengths
 104 Job Bank was  Strong database:  Zero debts.
established: 1996. 6 million resumes,
75% college  Solid cash positions of
graduated/ above, NT$2.0 billion.
 First IPO Job Bank
281K corp. customers.
company in Taiwan:
 Strong capability to
2006.
 Online job opportunities generate cash even in
(May. 2016): 722K, represent difficult economic
 First Job Bank in Taiwan
an increase of 11% 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

Leading Market Role

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

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History of Business Expansion

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HR Portal
Green Tutor Cicisasa
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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Unit: NT$’000

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Source: Company data

Services and Products

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

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 = 3,610,000

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Revenue Breakdown of 2016 May

Unaudited Revenue ：

						Unit: NT$’000	Unit: NT$’000
	Time Item	Monthly Revenue of May 2016	Monthly Revenue of May 2015	YoY	Accumulated Revenue of 2016	Accumulated Revenue of 2015	YoY
	Consolidated	128,978	236,761	-45.52%	593,140	1,057,667	-43.92%
	Consolidated (excluding temporary staffing business)		138,048	-6.57%		569,601	4.13%
	Online	107,026	122,187	-12.41%	502,677	481,370	4.43%
	Consulting	21,953	114,574	-80.84%	90,463	576,297	-84.30%
	Consulting (excluding temporary staffing business)		15,861	38.40%		88,230	2.53%

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Source: Company data

Revenue Performances

Online Services:

• Job Bank Listing / Ads

• Value-added Services

Consulting Services:

• Head-Hunting

• Temp-Staffing

• HR Academy

Revenue by Business Sectors, 2015FY

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Operating Consulting Online Operating
margin: 53% 47% margin:
5.6% 49.5%
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Quarterly Unaudited Consolidated Revenue

(Unit: NTD’000)

IFRS	**2016 Q1 **	**2015 Q4 **	2015 Q3	**2015 Q2 **
Consolidated	344,189	610,896	657,008	678,408
YoY	9.27%	-3.06%	0.98%	8.57%
Online	293,565	285,742	319,896	318,732
YoY	11.16%	2.88%	10.64%	13.31%
Consulting	50,624	325,154	337,113	359,676
YoY	-0.52%	-7.74%	-6.74%	4.68%

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Source: Company data

2016 Q1 Income Statement

(Unit: NTD ‘000) 2016 Q1 % 2015 Q1 % Net Operating Revenue 344,190 100% 315,027 100% Operating Cost 34,509 10% 32,121 10%	YoY Change 9.26% 7.43%
Gross Profit 309,681 90% 282,906 90%	9.46%
Operating Expenses 227,092 66% 214,827 68%	5.71%
Sales & Marketing 147,844 43% 145,713 46% General & Administrative 35,119 10% 28,061 9% Research & Development 44,129 13% 41,053 13%	1.46% 25.15% 7.49%
Operating Income 82,589 24% 68,079 22%	21.31%
Non-Operating Income (Loss) 11,166 3% 3,573 1% Pre-Tax Income 93,755 27% 71,652 23% Less: Tax Expense (Income) (30,907) -9% 11,931 4% Income from Discontinued Operations, Net of Tax 38,765 11% 8,283 3%	212.51% 30.85% - 368.01%
Net Income 163,427 47% 68,004 22%	140.32%
Other comprehensive Income (159) - (394) - Total ComprehensiveIncome 163,268 47% 67,610 22%	- 141.48%
Parent Shareholding 163,457 68,544 MinorityInterest (30) (540)	11 Source: Compa

2016 Q1 Balance Sheet

Unit: NTD’000	2016.3.31		2015.3.31
	Amount	%	Amount	%
Cash & Cash Equivalents	1,990,450	87%	1,699,023	79%
AR & NR	49,790	2%	213,739	10%
Other Receivables	31,648	11%	10,035	1%
Total Current Assets	2,080,318	91%	1,929,910	90%
Property, Plant and Equipment	166,581	8%	171,445	8%
Intangible Assets	13,767	1%	13,801	1%
Total Assets	2,283,146	100%	2,147,290	100%
AP/NP/Other Payables	212,073	9%	318,355	15%
Deferred Revenue	369,942	17%	334,495	16%
Total Current Liabilities	678,187	30%	741,736	35%
Total Liabilities	682,333	30%	744,767	35%
Shareholders' Equity	1,600,813	70%	1,402,523	65%

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Source: Company data

2016 Q1 Cash Flows

Unit: NTD’000	2016 Q1	2015 Q1
	Amount	Amount
From Operating Activities	25,334	(6,534)
Income Before Tax	93,755	80,894
Depreciation and Amortization	18,600	17,249
Other Operating Sources / (Uses)	(87,021)	(104,677)
From Investing Activities	118,335	(10,936)
Proceeds from Disposal of Subsidiaries	124,625	-
Acquisitions of PP&E	(4,769)	(7,475)
Acquisitions of Intangible Assets	(2,003)	(2,375)
Cash and Cash Equivalents at the Beginning of January 1	1,846,942	1,716,860
Cash and Cash Equivalents at the End of March 31	1,990,450	1,699,023

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Source: Company data

2015 Income Statement

(Unit: NTD ‘000) 2015 FY % 2014 FY % Net Operating Revenue 1,409,398 100%1,293,180 100% Operating Cost 139,958 10% 138,827 11%	YoY Change 8.99% 0.81%
Gross Profit 1,269,440 90%1,154,353 89%	9.97%
Operating Expenses 939,421 67% 845,756 65%	11.07%
Sales & Marketing 617,482 44% 567,999 44% General & Administrative 127,547 9% 108,047 8% Research & Development 194,392 14% 169,710 13%	8.71% 18.05% 14.54%
Operating Income 330,019 23% 308,597 24%	6.94%
Non-Operating Income (Loss) 21,192 1% 27,772 2% Pre-Tax Income 351,211 24% 336,369 26% Income from Discontinued Operations, Net of Tax 37,712 3% 30,899 2%	-23.69% 4.41% 22.05%
Net Income 330,818 23% 313,002 24%	5.69%
Other Comprehensive Income (4,172) - (5,071) - Total ComprehensiveIncome 326,646 23% 307,931 24%	- 6.08%
Parent Shareholding 329,656 310,589 Minority Interest 1,162 2,413	Source: Compa

2015 Balance Sheet

Unit: NTD’000	2015.12.31	2015.12.31		2014.12.31
	Amount		%	Amount	%
Cash & Cash Equivalents	1,846,942		79%	1,716,860	81%
AR & NR	37,646		1%	218,110	10%
Non-Current Assets Classified as Held for Sale, Net	262,162		11%	-	-
Total Current Assets	2,164,216		91%	1,951,822	91%
Property, Plant and Equipment	178,593		8%	158,328	7%
Intangible Assets	13,757		1%	15,382	1%
Total Assets	2,378,983		100%	2,156,580	100%
AP/NP/Other Payables	294,921		12%	434,912	20%
Liabilities Related to Non-Current Assets Classified as Held for Sale	170,914		7%	-	-
Deferred Revenue	352,750		15%	305,215	14%
Total Current Liabilities	937,990		39%	820,811	38%
Total Liabilities	942,629		39%	824,318	38%
Shareholders' Equity	1,436,354		61%	1,332,262	15 62%

Source: Company data

2015 Cash Flows

Unit: NTD’000	2015 FY	2014 FY
	Amount	Amount
From Operating Activities	536,616	511,680
Income Before Tax	390,442	370,177
Depreciation and Amortization	75,084	64,006
Other Account Payable	19,066	94,351
From Investing Activities	(89,711)	(23,314)
Net Gain on Financial Assets Measured at Fair Value through Profit or Loss	-	30,355
Acquisitions of PP&E	(79,357)	(44,880)
Acquisitions of Intangible Assets	(11,056)	(10,465)
From Financing Activities	(231,782)	(197,991)
Cash Dividends Paid	(231,782)	(197,991)
Cash and Cash Equivalents at the Beginning of January 1	1,716,860	1,432,549
Cash and Cash Equivalents at the End of December 31	1,931,064	1,716,860
Cash and Cash Equivalents on Balance Sheet	1,846,942	1,716,860

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Source: Company data

Dividend Policy

0 1 2 3 4 5 6 7 8 9 10	0% 20% 40% 60% 80% 100% 2008 2009 2010 2011 2012 2013 2014 2015 EPS (LHS) Dividend Payout /Per Share(LHS) Dividend Payout Ratio (RHS)
Fiscal	Year 2008 2009 2010 2011 2012 2013 2014 2015
Net Income 238,328 171,542 261,328 228,164 170,855 241,423 310,589 329,655
Cash Dividend 142,763 154,237 203,996 204,079 147,709 197,991 231,782 264,990
Dividend Payout Ratio 60% 90% 78% 89% 87% 82% 75% 80%
Average Stock Price 99.5 73.3 112.6 99.23 76.06 90.06 122.24 151.94
Yield Rate (%) 4.25% 6.23% 5.33% 6.05% 5.98% 6.66% 5.73% 5.27%
Employee Cash Bonus 26,356 18,424 28,168 24,614 18,204 26,074 33,544 NA

Source: Company data

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65 y

15 y

104 Value Map

 50% profit margin

Higher ageing rate Lowest career termination rate

We care

Job & resume material value We develop

Career & talent management/knowledge management

Lowest birth rate Highest talent variety rate

We inspire

C.M.O.S. C Cloud M Mobile O Open Platform

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S
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Green Tutor

 A Q & A learning platform: it encourages children to ask questions and think independently

 In addition to ask school questions, they can ask about career – related questions.

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104 Career Community

 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.

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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.

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

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Senior Care Services

 104 Corp expands its core value to senior care services, aiming to solve senior care problems & help working class to solve their hidden stress and responsibility of in-home nursing care.

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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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