FARCENT — Investor Presentation 2021

Dec 22, 2021

Farcent 1730.TW Investor Conference December 22, 2021

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

• Competitive advantage

• Development strategy

• ESG / Corporate social responsibility

Table of Contents

• Financial update

• Competitive advantage

• Development strategy

• ESG / Corporate social responsibility

1~3Q2021 Financial Result

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NT$K Q3 QoQ YoY Q1~Q3 YoY
Net Sales 777,512 34% -5% 2,258,140 1%
COGS 441,871 45% -2% 1,253,996 5%
GP 335,641 23% -8% 1,004,144 -3%
GP% 43.2% 44.5% -0.4ppt
OPEX 245,609 13% -16% 740,371 -6%
OP 90,032 63% 23% 263,773 5%
Net Income 80,788 55% -53% 229,859 -31%
EPS 1.20 64% -53% 3.32
Number of shares 63,233,900
ROE 13%
Debt Ratio 29%
Cash on hands 574,475 -7%
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YTD 2021 TW OBN sales +4% YoY

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Growing amid Covid-19 lockdown
2,500 7%
6% 6%
2,000
5%
1,500
4%
4%
3%
3%
1,000 3% 3%
2% 2% 2% 2%
2% 2%
500
1%
1%
- 0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2021 YoY
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Focused on brand value creation

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OBN: Continual focus and growth 3Q/2021
3,000,000
2,500,000
2,000,000 28%
1,500,000
56%
1,000,000
16%
500,000
0
2014 2015 2016 2017 2018 2020 3Q/2021
Air care Dehumidifier Cleaning Air care Dehumidifier Cleaning
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Multiple engines

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Growing bargain power
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 3Q/2021
Dealership TW OBN Overseas
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Sustainable growth

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Farcent Group sales trend
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 2020 3Q/2021
Dealership TW OBN Overseas
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Rising Return

Margin Performance

Stable dividend payout

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50% 6 45%
5.51
5.37
45%
40%
4.96
5
40%
35%
35%
4 3.76 30%
3.5
30% 3.32
3.04 3.13 25%
25% 3 2.73
20%
20% 19% 21% 21% 2.14 2.18 2.27
2
15% 14% 16% 15% 13% 2 1.7 15%
13%
10% 11% 10% 10% 12% 10% 12% 10%
9%
8% 1
5% 5%
0% 0 0%
2014 2015 2016 2017 2018 2019 2020 2021/Q3 2014 2015 2016 2017 2018 2019 2020 2021/Q3
GM OPM ROE EPS Cash div per share Debt Ratio
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Table of Contents

• Financial update

• Competitive advantage

• Development strategy

• ESG / Corporate social responsibility

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Farcent Brands
香氛品類 居家清潔品類 個人清潔 除濕品類 工具品類
廚具用品類 防蚊類
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Strengths – RD and marketing

花仙子於台灣家用品類擁有7個領導品牌:

類別		品類	市佔 地位	市場占有率*
居家環境		除溼劑	#1	80%
		香氛	#1	52%
清潔工具		靜電拖把及除塵紙	#1	75%
		旋轉拖把	#1	80%
		黏塵滾輪拖	#1	37%
		膠棉拖	#1	36%
浴廁清潔		浴廁清潔劑	#1	37%

*註:部分資料為尼爾森資料, 或者為通路銷售資料推估

Strengths –international sales network

• 台灣全通路銷售，包含量販、超市、個人用品店、經銷及網路

• 國際化的通路渠道:中國,泰國,馬來西亞,越南

• 全集團品項數: 2,119 PCS

• 全集團產品鋪貨店數: 33,317 店點(參考下表)

Outlets	Taiwan	China	Oversea	Total
Hyper	210	2,112	66	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	33,137

Table of Contents

• Financial update

• Competitive advantage

• Development strategy

• ESG / Corporate social responsibility

Post pandemic strategy

Supply chain management and cost saving

• Back-up suppliers

• Inventory dynamics control

• Diversifying production site and increasing outsourcing

• Product design change and replace materials

Product development

• Focusing on hygiene and environmental friendly feature

• Product upgrade and differentiation

• NPD (personal care, repellent, etc.)

Sales channel strategy

• Omni channels

• EC opportunity

• Optimize expensing

Air Freshener Series upgrade

去味大師-竹木香系列 榮獲2021年金點設計獎

網紅設計師聶永真跨界合作

Natural Detergent Series upgrade

New Product-Mop Series co-branding with VOGUE

時尚媒體VOGUE 25週年環保愛地球聯名款 減塑!省水!包材再生!時尚美型!

New Product – mosquito repellent

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Growth Opportunity – TW EC
%
32 %
↑
29 %
↑
61 %
↑
2017 2018 2019 2020 2021
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EC strategy

花仙子品牌日 名人/KOL直播.團購帶購 社群曝光x 話題聯名商品

Table of Contents

• Financial update

• Competitive advantage

• Development strategy

• ESG / Corporate social responsibility

ESG – involve in product design

Decomposable ingredients over 95%.

ESG – involve in supply chain and marketing

Recycled material in existing packaging

Disadvantaged children care program

ESG – Farcent Foundation Our vision and focus:

ESG – Farcent Foundation

2015~2021 donation: NT$ 25,691,259 元

Building disadvantaged child care network.

Sponsored 10 schools and

NGO a year.

ESG – Farcent Foundation

Host hometown arts and humanities education activities

• Involved 15 schools every year.

• • Accumulated participants: 5,588

★ 花蓮縣徐榛蔚縣⾧致贈感謝狀予 花仙子蔡心心董事⾧

ESG – Farcent Foundation Environmental Education & Sustainable Development.

Yr2020~2021

• 20 environmental education lectures with 2,488 people participated.

Thank you