FARCENT — Investor Presentation 2020

Sep 22, 2020

Farcent 1730.TW Investor Conference September 22, 2020

Disclaimer Statement

• This presentation contains "forward-looking statements” which may include projections of future results of operations, financial condition or business prospects based on our own information and other sources.

• Our actual results of operations, financial condition or business prospects may differ from those expressed or implied in these forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, international economic conditions, supply chain issues, exchange rate fluctuations and other risks and factors beyond our control.

• The forward-looking statements in this release reflect the current belief of Farcent as of the date of this release. Farcent undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.

Table of Contents

• Financial update

• Company profile

• Competitive advantage

• Development strategy

• Corporate social responsibility

Table of Contents

• Financial update

• Company profile

• Competitive advantage

• Development strategy

• Corporate social responsibility

2020 Q1-Q2 financial result

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NT$k 2Q20 QoQ YoY 1H20 YoY
Net Sales 754,758 13% -22% 1,423,679 -28%
COGS 401,056 15% -29% 749,997 -34%
GP 353,702 11% -12% 673,682 -19%
OPEX 255,910 7% -7% 495,657 -8%
OP 97,792 22% -24% 178,025 -39%
Net Income 75,407 17% -28% 139,619 -41%
- -
EPS 1.14 8% 28% 2.38 0%
Number of shares 63,233,900 0%
ROE 8%
Debt Ratio 42%
Cash on hands 538,297 11%
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1H20 Branding rev up against Covid19

Branding business growth outpaced through - Covid 19 pandemic

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17%
11%
TW OBN Overseas
1H/2019 1H/2020
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Focused on brand value creation

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OBN: Continual focus and 1H/2020
growth
3,000,000
2,500,000
30%
2,000,000
1,500,000
54%
1,000,000
16%
500,000
0
2014 2015 2016 2017 2018 2019
Air care Dehumidifier Cleaning Air care Dehumidifier Cleaning
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Rising return

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Return scaling up
50%
45%
40%
35%
30%
25%
20% 21%
19%
17%
16%
15% 14% 15%
12% 13% 13%
11%
10% 10% 10%
9%
8%
5%
0%
2014 2015 2016 2017 2018 2019 1H/2020
GM OPM ROE
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Rising dividend
6 45%
5.37
40%
4.96
5
35%
4 3.76 30%
3.5
3.04 3.13 25%
3 2.73
2.38 20%
2.27
2.14 2.18
2
2 1.7 15%
10%
1
5%
0 0%
2014 2015 2016 2017 2018 2019 1H/2020
EPS Cash div per share Debt Ratio
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Sustainable growth

Farcent Group sales trend

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4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2012 2013 2014 2015 2016 2017 2018 2019
Dealership TW OBN Overseas
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Multiple engines

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Growing bargain power Right balance
100%
90%
80%
70% 26%
60%
48%
50%
40%
30%
20% 26%
10%
0%
2012 2013 2014 2015 2016 2017 2018 2019
Dealership TW OBN Overseas TW Dealership OVERSEAS
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Table of Contents

• Financial update

• Company profile

• Competitive advantage

• Development strategy

• Corporate social responsibility

Business coverage

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Farcent Brands

Air Fresheners

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Farcent Brands

Detergent

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Dehumidifiers

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Cleaning Tools
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Agency Business

Cookware

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Tableware

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Air Freshener Series

平價香氛、功能性香氛、時尚香水調香氛

Air Freshener Series

戀愛能量香氛／潮流香氛

Personal care Series

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Personal care Series

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Dehumidifier Series

除濕第一品牌首創除濕看的見

Household Detergent Series

浴廁清潔第一品牌陪你度過每個年頭

Natural Detergent Series

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Home Cleaning Tools Series

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Eco-friendly Series

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Spin Mop Series

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對於打掃我們比你還挑剔

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Mop Series

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全世界都在用好神拖 熱賣超過40萬組

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Table of Contents

• Financial update

• Company profile

• Competitive advantage

• Development strategy

• Corporate social responsibility

Competitive Advantage

Strong RD & marketing - Market leader in 6 household categories:

Category	Category	Position	Market Share*
Home Care	Dehumidifiers	#1	82%
	Air Fresheners	#1	58%
Home Cleaning Tools	Dry/Wet Mops	#1	73%
	Spin Mop	#1	74%
	Dust Roller	#1	31%
Bathroom Detergent	Toilet Detergents	#1	36%

*註:部分資料為尼爾森資料, 或者為通路銷售資料推估

Competitive advantage

Channel networks

• Total 2,119 SKUs

• TW & overseas stores: 33,317

Outlets	Taiwan	China	Oversea	Total
Hyper	216	2,112	666	2,994
PCS	3,306	-	550	3,856
CVS	7,284	1,783	12,237	21,304
GT	2,701	1,744	686	5,131
EC	21	6	5	32
Total	13,528	5,645	14,617	33,317

Table of Contents

• Financial update

• Company profile

• Competitive advantage

• Development strategy

• Corporate social responsibility

Expand brand/market portfolio

• Invest in future: prioritize capital allocation to organic growth

• ：

• Long term growth strategy

• Fully leverage branding and channel networks

• Focusing products: LPF, home care and cleaning tools

• New products: personal care, Anti-bio product

• Focusing market: TW, CN, THAI, Malaysia, Vietnam

• New market: Philippine, Myanmar

Table of Contents

• Financial update

• Company profile

• Competitive advantage

• Development strategy

• Corporate social responsibility

CSR – involve in product design

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Decomposable ingredients over 95%.

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CSR – involve in supply chain and marketing

Recycled material in existing packaging

Disadvantaged children care program

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CSR – Farcent Foundation

Our vision and focus:

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CSR – Farcent Foundation 2015~2019 donation: NT$ 12,352,690

Building disadvantaged child care network.

Sponsored 10 schools and NGO a year.

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CSR – Farcent Foundation

Host hometown arts and humanities education activities

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• Involved 16 schools every year.

• Accumulated participants:4,281

CSR – Farcent Foundation

Eco friendly activity

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18 Clean Beach Activities since 2016, with 600 people involved.

Thank you