EMIC — Interim / Quarterly Report 2017

Nov 29, 2017

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Eastern Media International Corporation (2614 TT/TW)

November 30, 2017

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Safe Harbor Notice

The information contained in this presentation, including all forwardlooking statements, is subject to change without notice, whether as a result of new information, future events or otherwise, and EMI undertakes no obligation to update or revise the information contained in this presentation.

Actual results may differ materially from those expressed or implied in these forward-looking statements and 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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About Company

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Founded 1975/05/14
Trading
IPO 1995/09/23
Others Media
Major
Capital NT$6.96bn
Business
-Six
Employees 270
Segments
Consolidated Shipping Warehousing
around 2,400
Employees
Tourism
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Main Segment Entities

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Trading Media Others Warehousing Shipping Tourism
EMI- Eastern
Eastern Hotels &
Eastern ETtoday EMI- Shipping
Integrated Resorts
Home Warehousing Department
Marketing
Shopping & Department
(Electronic point)
Leisure
(merged with Far Eastern
Silo and
Sen Sen)
Shipping
Mohist Web
(Panama)
Technology
(Electronic ticket
platform)
-- Future Development --
Keep Investing Stable Operating To be Finished
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17Q1~17Q3 Consolidated B/S

(NT$mn)	2017 Q1~Q3	2016 Q1~Q3	% chg
Operating revenues	10,099	8,141	24.04%
Operating costs	7,540	5,265	43.22%
Gross profit	2,559	2,877	(11.05)%
Operating expenses	2,766	2,704	2.31%
Net operating income	(208)	173	N.A
Non-operating income & expenses	147	228	(35.82)%
Profit	(108)	365	N.A
Other comprehensive income	(54)	(99)	45.81%
Total comprehensive income	(162)	265	N.A
Profit attributable to parent	(142)	487	N.A
Basic earnings per share	(0.20)	0.70

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17Q1~17Q3 Consolidated B/S

(NT$mn)	2017 Q1~Q3	2017 Q1~Q3	2016 Q1~Q3	2016 Q1~Q3
Balance Sheets	Amount	%	Amount	%
Current Assets	5,414	41.77%	5,901	60.21%
Cash & cash equivalents	2,886	22.26%	4,071	41.54%
Non-current Assets	7,548	58.23%	3,899	39.79%
Investments (equity method)	766	5.91%	531	5.42%
Property, plant and equipment	2,472	19.07%	2,045	20.87%
Intangible assets	3,668	28.30%	86	0.88%
Total Assets	12,963	100.00%	9,800	100.00%
Current Liabilities	4,818	37.16%	3,623	36.97%
Account payable	1,853	14.29%	973	9.93%
Non-current Liabilities	2,692	20.77%	617	6.30%
Long-term loans	2,432	18.76%	178	1.81%
Total Liabilities	7,509	57.93%	4,241	43.27%
Total Equity	5,453	42.07%	5,560	56.73%
Value per share (NT$)	6.26		7.39
Key Indices
Current ratio %	112%		163%
Quick ratio %	72%		147%
Debt ratio %	57.93%		43.27%

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Revenue by Segment

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2017 Q1~Q3 2016 Q1~Q3
Others
Media 3.61% Warehousing Shipping Media Others Warehousing Shipping
3.50% 8.17% 4.15% 10.98% 4.32%
3.17% 11.46%
Tourism Tourism
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	(NT$mn) 2017 Q1~Q3 % 2016 Q1~Q3 % Revenue 10,099 100.00% 8,141 100.00% Warehousing 826 8.17% 893 10.98% Shipping 419 4.15% 352 4.32% Tourism 92 0.91% 229 2.81% Trading 8,045 79.66% 5,476 67.26% Media 353 3.50% 258 3.17% Others 364 3.61% 933 11.46% 0.91% Trading 79.66% 2.81% Trading 67.26%	(NT$mn) 2017 Q1~Q3 % 2016 Q1~Q3 % Revenue 10,099 100.00% 8,141 100.00% Warehousing 826 8.17% 893 10.98% Shipping 419 4.15% 352 4.32% Tourism 92 0.91% 229 2.81% Trading 8,045 79.66% 5,476 67.26% Media 353 3.50% 258 3.17% Others 364 3.61% 933 11.46% 0.91% Trading 79.66% 2.81% Trading 67.26%	(NT$mn) 2017 Q1~Q3 % 2016 Q1~Q3 % Revenue 10,099 100.00% 8,141 100.00% Warehousing 826 8.17% 893 10.98% Shipping 419 4.15% 352 4.32% Tourism 92 0.91% 229 2.81% Trading 8,045 79.66% 5,476 67.26% Media 353 3.50% 258 3.17% Others 364 3.61% 933 11.46% 0.91% Trading 79.66% 2.81% Trading 67.26%	(NT$mn) 2017 Q1~Q3 % 2016 Q1~Q3 % Revenue 10,099 100.00% 8,141 100.00% Warehousing 826 8.17% 893 10.98% Shipping 419 4.15% 352 4.32% Tourism 92 0.91% 229 2.81% Trading 8,045 79.66% 5,476 67.26% Media 353 3.50% 258 3.17% Others 364 3.61% 933 11.46% 0.91% Trading 79.66% 2.81% Trading 67.26%	(NT$mn) 2017 Q1~Q3 % 2016 Q1~Q3 % Revenue 10,099 100.00% 8,141 100.00% Warehousing 826 8.17% 893 10.98% Shipping 419 4.15% 352 4.32% Tourism 92 0.91% 229 2.81% Trading 8,045 79.66% 5,476 67.26% Media 353 3.50% 258 3.17% Others 364 3.61% 933 11.46% 0.91% Trading 79.66% 2.81% Trading 67.26%
	(NT$mn)	2017 Q1~Q3	%	2016 Q1~Q3	%
	Revenue	10,099	100.00%	8,141	100.00%
	Warehousing	826	8.17%	893	10.98%
	Shipping	419	4.15%	352	4.32%
	Tourism	92	0.91%	229	2.81%
	Trading	8,045	79.66%	5,476	67.26%
	Media	353	3.50%	258	3.17%
	Others	364	3.61%	933	11.46%

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Warehousing Segment Highlights Operating revenues

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Pretax profit
(NT$mn)
600
400
200
324 305
0
2016 2017
Q1~Q3 Q1~Q3
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(NT$mn)
1,200
1,000
800
600
893
400 826
200
0
2016 2017
Q1~Q3 Q1~Q3
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Unit:10,000 Tons
Bulk Bulk & Container
Operating
Year
volume
Import Market Import Market
volume share volume share
2016
480 495 97% 608 79%
Q1~Q3
2017
455 465 98% 626 73%
Q1~Q3
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Shipping Segment Highlights Operating revenues Pretax profit

Pretax profit

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600 (NT$mn)
(NT$mn)
0
2016 2017
Q1~Q3 Q1~Q3
400
(200)
419
352 (208)
(277)
200
(400)
2016 2017
Q1~Q3 Q1~Q3
Daily Rates Panamax
(USD) Year 2016 2017 2018 2019 2020
Year 2016 2017
Q1~Q3 Q1~Q3
Net Rates
6,190 7,913 Panamax
Average 9->6 6 6->3 3->1 1
Fleet
Spot TC
5,430 9,078
Average
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Tourism Segment Highlights

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Operating revenues Pretax profit
(NT$mn)
(NT$mn)
400 400
200 89
229
200
92 0
2016 2017
Q1~Q3 Q1~Q3
0 (200)
(155)
2016 2017
Q1~Q3 Q1~Q3
(400)
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Room Average
Year Occu- Rate
pancy (NT$)
2016Q1
Eastern 54% 4,371
~Q3
Hotel &
2017
Resorts 48% 3,859
Q1~Q3
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• Taiwan's tourism market is facing the oversupply of hotel rooms. Due to the downturn of the market, Eastern Hotel & Resort is scheduled to be closed on Dec. 1[st] , 2017.

• After the closure of the business, EMI will reduce a net loss of 55 million each year.

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Trading (Home Shopping) Segment Highlights

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• The subsidiary Eastern Home Shopping & Leisure Corp. (EHS) is the main operating entity of this segment.

• EHS is mainly engaged in 5 TV shopping channels and own the biggest share in Taiwan's TV shopping market. EHS sells merchandises on the Internet, smartphone, catalogue, IPTV, etc.

• EHS merged with Sen Sen on April 1[st] , 2017.

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Operating revenues Pretax
8,000 (NT$mn) profit
2,000 (NT$mn)
6,000
4,000 8,045
1,000
5,476
2,000
214
86
0 0
2016 2017 2016 2017
Q1~Q3 Q1~Q3 Q1~Q3 Q1~Q3
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Revenue by Channel

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(Omni-
channels)
Cross-
channel
(E- Integration (TV)
commerce) Customer
Continue Behavior
to grow Changed
Market
Trends
(IPTV)
(Outbound)
Blue
Continue to
Ocean
grow
Market
(Catalogue)
Target
Marketing
★note: including Q1 Sen Sen & Q2~3 post-merged EHS
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Future Development

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Cross-channels Own-Brand Overseas Integration Development Operation 2017 2018 2019 2020

2019 2020

All Channels

TV+IPTV

Catalogue

• Cooperate with Korean Company (Hyudai Home Shopping)

• Improve production quality of programs • Cross-industry alliance

• Pursuit profit growth in mature market cooperation

• Pursuit profit growth in mature market

• • Attract new customers in Blue Ocean Market

• Duplicate successful experience to expand overseas markets

• Engage in web community and to

issue electronic catalogues

Outbound Call

• Increase Recruitment

• Own-brand product sale

• Create exclusive marketing team

E-Commerce

• Rooted in e-commerce technology and •

• platform optimization Product differentiation

• The introduction of big brand products

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Media Segment Highlights

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• The subsidiary ETtoday Corp. is the main operating entity of this segment.

 ETtoday was established in late 2011, as Taiwan's first web community news media.

• Achieved monthly profit target in 2017: January, May, June and October .

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Operating revenues Pretax profit
NT$mn NT$mn
400
350
0
300
2016 2017
250
200 (50) Q1~Q3 Q1~Q3
150
258 353
100 (65)
50 (100) (68)
0
2016 2017 (150)
Q1~Q3 Q1~Q3
(200)
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Revenue Growth Trend

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Future Development

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ETtoday 2.0 ETtoday 3.0 ETtoday 1.0 Digital Video & Video Digital platform & Informative Digital news & pictures Content/E-commerce platform Streaming

5 1 2 3 4 Content Content E- Advertising Mobile Streaming structure Marketing commerce & Video APP (combined (Marketing optimization products) directed)

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Challenges & Opportunities

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Loyalty
International
Program
Cooperation
Innovation
Target
Cross-industry
• Marketing
Electronic Points
Cooperation
•
Electronic Tickets Platform
Omni-
Contractors Card Holders
Channel
Cross-platform
Mobile, Big Data, Retailing
Cooperation
Community & O2O
New
New
Media
Retail
•
•
ETtoday EHS
advertisers audiences suppliers members
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Recap of Recent Major Events

Disposal of EBC Shares (2017/11/2)

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 The disposal of Eastern Broadcasting Company (EBC) 23.32% of shares and the disposal profit of NT$ 3.05 bn (EPS contribution NT$4.4) has been booked into account and reflected in the Q4 earnings.

Disposal of EED Shares (2017/9/29)

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 After the completion of dealing procedures, the disposal of Eastern Enterprise Development (Shanghai) Co., Ltd. (EED) 100% of shares and the disposal profit of approx. NT$ 2.04 bn (EPS contribution NT$2.93) will booked into account.

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http://www.emic.com.tw ir@emic.com.tw

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