DE LICACY — Interim / Quarterly Report 2019

May 23, 2019

2019 1Q Investor Update May 23, 2019

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Disclaimer

The information contained in this presentation, including all forward-looking information, is subject to change without notice, whether as a result of new information, future events or otherwise, and De Licacy Co., Ltd. (the “Company”) undertakes no obligation to update or revise the information contained in this presentation. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is the information intended to be a complete statement of the Company, markets or developments referred to in this presentation.

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Outline

• Capacity

• Customer

• Financial Performance

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Capacity Expansion

Vietnam Factory Capacity Expansion in Progress

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2018 Q3 2019 Q2
‧ ‧
Piece Dye Piece Dye
3.0M yds/month 4.5M yds/month
‧ ‧
Yarn Dye Yarn Dye
0.9M yds/month 1.2M yds/month
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• 2018 Q1

• ‧ Piece Dye 1.5M yds/month

• ‧ Yarn Dye 0.5M yds/month

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Capacity Overview

DL, Vietnam

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P/D: 4.5M/month
Y/D: 1.2M/month
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DL, Hangzhou

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DL, Tainan

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P/D: 3.0M/month
Y/D: 0.9M/month
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• Capacity

• Customer

• Financial Performance

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Our Customers

Brand customers include UA, Adidas, 5.11, Columbia, Express …

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• Capacity

• Customer

• Financial Performance

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Profitability Increase

Operating Margin (%)

Total Revenue (NT$B)

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4.5%
4.2% 4.1%
3.3%
1.7%
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
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Consolidated P&L

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(in NT$ millions) Q1'19 Q4'18 Q1'18 QoQ YoY
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Net Revenue	2,334	2,575	2,005	-9.4%	16.4%
Gross Margin	18.0%	16.8%	15.1%	+1.2ppts	+2.9ppts
Operating Expenses	319	349	309	-8.7%	3.1%
Operating Margin	4.5%	4.1%	1.7%	+0.4ppts	+2.8ppts
Non-Operating Items	15	(14)	(36)	n.a.	n.a.
Net Income to Shareholders of the Parent Company	102	54	(29)	90.8%	n.a.
Net Profit Margin	4.4%	2.1%	-1.4%	+2.3ppts	+5.8ppts
EPS (NT Dollar)	0.31	0.16	(0.09)	93.8%	n.a.
ROE	1.9%	1.0%	-0.5%	+0.9ppts	+2.4ppts
Average Exchange Rate - USD/NTD	30.83	30.85	29.30	-0.1%	5.2%

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Balance Sheets & Key Indices

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Q1'19 Q4'18 Q1'18
(in N T$ millions)
Amount % Amount % Amount %
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Cash & Marketable Securities	3,212	18.7%	2,871	17.3%	2,627	18.2%
Accounts Receivable	2,021	11.7%	2,033	12.2%	1,634	11.3%
Inventories	2,905	16.9%	2,838	17.1%	2,676	18.5%
Long-term Investm ents	858	5.0%	859	5.2%	419	2.9%
Property and Equipm ent	6,313	36.7%	6,035	36.3%	5,510	38.2%
T otal Asse ts	17,216	100.0%	16,624	100.0%	14,431	100.0%
Current Liabilities	8,025	46.6%	10,038	60.4%	6,452	44.7%
Long-term Borrowings	3,626	21.1%	1,226	7.4%	2,236	15.5%
T otal Liabilities	11,798	68.5%	11,403	68.6%	8,847	61.3%
T otal Share holde rs' Equity	5,417	31.5%	5,221	31.4%	5,584	38.7%
Ke y Indice s
A/R T urnove r Days	79		69		78
Inv entory T urnov er Days	137		123		136
Current Ratio (x)	1.16		0.88		1.19

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Q & A http://www.delicacy.com.tw

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