EMIC — Investor Presentation 2018

Dec 17, 2018

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Eastern Media International Corporation (2614 TT/TW) December 17, 2018

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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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Trading
Founded 1975/05/14
IPO 1995/09/23
Major
Others Media
Business
Capital NT$5.57bn
-Five
Segments
Employees 268
Consolidated
around 3,696
Employees
Shipping Warehousing
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Main Segment Entities

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--Future Development --

Media ETtoday

Trading

Warehousing ETtoday EMIShipping iM Short Video Media Warehousing EMI-Shipping Dept. Department FESS (Panama)

Eastern Home Shopping Natural Beauty(HK) Strawberry Cosmetics(HK) Mohist Web Technology [Note]

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Keep Investing
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Stable
Operating
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To be
Finished
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• [Note] : Revenue of electronic ticket platform is classified as “others” segment.

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18Q1~18Q3 Consolidated B/S

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(NT$mn)	2017 Q1~Q3	2017 Q1~Q3	% chg
Operating revenues	13,478	10,099	33.46%
Operating costs	9,832	7,540	30.39%
Gross profit	3,646	2,559	42.51%
Operating expenses	3,654	2,766	32.10%
Net operating income	(8)	(208)	96.17%
Non-operating income & expenses [Note]	2,373	147	1518.35%
Profit	1,982	(108)	N.A
Other comprehensive income	(65)	(54)	(21.18)%
Total comprehensive income	1,916	(162)	N.A
Profit attributable to parent	1,662	(142)	N.A
Basic earnings per share	2.61	(0.20)

[Note] : The after-tax profit of USD 60 million attributed from disposal of EED Shanghai in 2018Q2.

18Q1~18Q3 Consolidated B/S

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(NT$mn)	2018Q1~Q3	2018Q1~Q3	2017Q1~Q3	2017Q1~Q3
Balance Sheets	金額	%	金額	%
Current Assets	9,064	56.45%	5,414	41.77%
Cash & cash equivalents	5,598	34.86%	2,886	22.26%
Non-current Assets	6,992	43.55%	7,548	58.23%
Investments (equity method)	2,426	15.11%	2,472	19.07%
Property, plant and equipment	3,916	24.39%	3,668	28.30%
Intangible assets	16,056	100.00%	12,963	100.00%
Total Assets	4,397	27.39%	4,818	37.16%
Current Liabilities	1,562	9.73%	1,853	14.29%
Account payable	2,050	12.77%	1,278	9.86%
Non-current Liabilities	2,968	18.49%	2,692	20.77%
Long-term loans	2,832	17.64%	2,432	18.76%
Total Liabilities	7,366	45.87%	7,509	57.93%
Total Equity	8,691	54.13%	5,453	42.07%
Value per share (NT$)	13.00[Note]		6.26
Key Indices
Current ratio %	206%		112%
Quick ratio %	159%		72%
Debt ratio %	45.87%		57.93%

[Note] : Cash refund capital reduction by 20% to 5.57 billion TWD in 2018Q2.

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Revenue by Segment

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||||||||
|---|---|---|---|---|---|---|
|2018Q1~Q3|Others|2017Q1~Q3|
|Media|Warehousing|Media|Others|
|0.60%|Warehousing|
|3.29%|5.34%|Shipping|3.50%|4.51%|8.17% Shipping|
|4.18%|4.15%|
|Trading 86.59%|
|Trading 79.66%|
|~|~|
|(NT$mn)|2018 Q1|Q3|%|2017 Q1|Q3|%|
|Revenue|13,478|100.00%|10,099|100.00%|
|Warehousing|720|5.34%|826|8.17%|
|Shipping|563|4.18%|419|4.15%|
|Tourism|11,671|86.59%|8,045|79.66%|
|Trading|443|3.29%|353|3.50%|
|Media|[[Note] ]|80|0.60%|456|4.52%|

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[Note] : Including the tourism segment in 2017.

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Trading Segment Highlights

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• The subsidiaries, Eastern Home Shopping & Leisure Corp. (EHS) and Strawberry Cosmetics, are the main operating entities of this segment.

• EHS is mainly engaged in 4 TV shopping channels and own the biggest share in Taiwan's TV shopping market. EHS sells merchandises on e-commerce, catalogue, IPTV, OB channels and expands to overseas market.

• EHS merged with Sen Sen on April 1[st] , 2017 and acquired Strawberry Cosmetics 76% of shares on May 11[th] , 2018.

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Pretax
Operating revenues
profit
NT$mn NT$mn
12,000 900
9,000
600
6,000 11,671
8,045 300 541
3,000
214
0 0
2017 2018 2017 2018
Q1~Q3 Q1~Q3 Q1~Q3 Q1~Q3
8
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Revenue by Channel

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EHS 2014~2018Q3 Revenue by Channel
100%
TV
80%
E-
Strawberry
Net commerce
60%
40%
Line APP
Omni-
20% channels
0%
2014 2015 2016 2017 2018Q1~ OTT Catalogue
Q3
(Sen Sen) (Sen Sen) (Sen Sen) (EHS)
(EHS)
TV 68.14% 58.91% 65.83% 56.26% 48.42%
E-Commerce 27.86% 36.07% 26.90% 21.83% 22.20% OB IPTV
OB 3.29% 4.60% 6.48% 11.47% 16.16%
Catalogue 0.00% 0.00% 0.00% 6.13% 7.13%
IPTV 0.66% 0.42% 0.74% 4.30% 6.09%
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EHS merged with Sen Sen on April 1[st] , 2017.

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Future Developments

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Expansion of exclusive brands

Acquire new customers & increase customer retention

Celebrity and media advantages, customer clusters expansion

Deepen membership service & strengthen premium customers

EHS coins officially online, launch new membership mechanism

Visible outdoor advertising multiplication

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Media Segment Highlights

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 The subsidiary, ETtoday Corp. which was established in late 2011, is the main operating entity of this segment.

 Enjoying over 85% high viewer reach, and ETtoday is the No.1 news website in Taiwan.

 ETtoday daily pageviews(PV) is over 15 million along with daily active users(DAU) near 5 million. The average viewing time per user is 2 minutes and 54 seconds.  The ETtoday APP downloads is over 2 million.

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Operating revenues NT$mn Pre-tax profit NT$mn
600
0
2017 2018
400
Q1~Q3 Q1~Q3
(100)
200 353 443 (68) (108)
(200)
0
2017 2018
Q1~Q3 Q1~Q3
(300)
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Revenue Growth Trend

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Revenue growth rate is beyond the competition and exceeded 40% in 2016 & 2017.

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NT$mn
800 100.00%
80.00%
600
60.00%
400
40.00%
200
20.00%
0 0.00%
2015 2016 2017 2018.01-09
Revenue 258 372 524 454
Revenue Growth% 72.00% 44.19% 40.86% 20.11%
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[Note]: ETtoday stand alone financial statements.

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★ According to comScore, ETtoday grabs 5 No.1 ★
01 Multi-platform Pageviews
02 Multi-platform Total Visits
03 Multi-platform Total Views
04 Mobile Monthly Active Users
05
Mobile Pageviews
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Recent Achievements

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Fans PV Z
DAU Reach Generation
16 15
5 million 85% Favorite
million million New Media
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A young team with 600 employees, aged 30 on average, generates 600 pieces of news daily, interacting with 16 million fans in 30 fan pages via Facebook and WeChat.

According to Digital News Report from Reuters Institute for the Study of Journalism , ETtoday is the most well-known media brand in Taiwan. According to IWIN, ETtoday is the most favorite media among age 11 to 18 teen viewers.

According to comScore, ETtoday is the most favorite media among generation Z.

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Future Development I

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

5 1 2 3 4 Content Content E- Advertising Mobile Streaming & Marketing commerce Optimization Video APP (Tied in (Marketing merchandise) directed)

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Future Development II

• Pet Shops

• - O2O in physical store

01 08 New Business - Public Opinion 02 Survey 07 Entertainment Programs 03 - music talent reality TV 06 (Jungle Voice) 04 Overseas Market 05 - oversea viewers

Content Optimization - strengthen in-depth content and readability

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Online & Offline AD - ETtoday online ads, and offline outdoor ads Media Integration - ETtoday self-produced program launched on June 18[th] , 2018

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R & D - AI, Big Data & UX

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Warehousing Segment Highlights

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Operating revenues

Pretax profit

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(NT$mn)
(NT$mn)
600
900
400
600
825
720 200
300
305
170
0 0
2017 2018 2017 2018
Q1~Q3 Q1~Q3 Q1~Q3 Q1~Q3
Unit: 10,000 Tons
Bulk Bulk & Container
Operating
Year
volume
Import Market Import Market
volume share volume share
2017
455 465 98% 626 73%
Q1~Q3
2018
375 375 100% 623 60%
Q1~Q3
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Shipping Segment Highlights

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Operating revenues Pretax profit
(NT$mn) (NT$mn)
900
2017 2018
(100)
600 Q1~Q3 Q1~Q3
300 563
419 (300)
(277)
0
(343)
2017 2018
Q1~Q3 Q1~Q3 (500)
Daily Rates Panamax
(USD) 年 2017 2018 2019 2020
2017 2018
Year
Q1~Q3 Q1~Q3
Net Rates
7,913 11,996
Average Panamax 6 6->3 3->1 1
Fleet
Spot TC
8,630 11,159
Average
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New retail & New media Value Creation

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․ Entertainment content
development
․ ․ International
Performing arts
beauty website
agency Jungle
․
Global beauty
Voice
ET GROUP Strawberry.net supply chain
․ Social media
․ News website
․ Entertainment
platform ․ Video
shopping
New New ․C ustomer
ETtoday EHS loyalty program
․ Multi-channel
media retail ․ Commodity
development
․ Pet social Synergistic effect
media Eastern
․ O2O Globalization ․P hysical
channel
business model Pet Shop Nature ․ Customer
experience
Beauty
․
Game development GAME
18
18
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Recap of Recent Major Events

Acquired NB shares

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 Acquired NB (00157/HK) 30% of shares in the amount of HK$541 million through overseas subsidiary on Oct. 3[rd] , 2018.

 O2O integration: Integration development with beauty care and health supplements products through multiple channels, NB physical stores, Strawberry.net and EHS.

Pet shops reopen

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 Takeover the assets and trademarks of a pet chain store company on Oct. 9[th] , 2018. The physical stores soon to reopen in November.

 O2O integration: Integration with ETtoday’s online "Pet Cloud" and the offline physical pet shops.

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

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