FIRST HOTEL — Investor Presentation 2021

Dec 16, 2021

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FIRST HOTEL 2021 FINANCIAL BRIEFING

Date: December 17, 2021 Time: 2:30 p.m.

DISCLAIMER

• This Presentation contains certain forward-looking statements which are based on current expectations.

▪ However, due to known and unknown risks as well as uncertainties, the actual results may differ materially from those expressed or implied.

▪ Except as required by law, this company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

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AGENDA

Company introduction Market analysis Competitor analysis Financial overview Conclusion

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COMPANY INTRODUCTION: PROFILE

▪ Company establishment: October, 1962 ▪ Official registration: 27, September, 1968

▪ IPO date: 25, June, 1991 ▪ Taiwan Stock Exchange Code: 2706 ▪ Paid-in Capital: NTD 4,999,983,460 ▪ Chairman: Mr. An-Shen Ku

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COMPANY INTRODUCTION: OUR HOTEL

• First Hotel is centrally located at the heart of the buzzling Taipei City, on Nanking East Road

▪ First Hotel provides our guests the convenience and comfort they need while traveling in Taipei with its great location, easy access to major attractions, and the various dining options available on site

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COMPANY INTRODUCTION: FOOD & BEVERAGES

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MARKET ANALYSIS (1 OF 4): FOREIGN VISITORS

Number of Foreign Visitors to Taiwan in past 10 years, by country (unit: # of people)

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2020 Foreign Visitors
4,184,102
Japan 269,659
3,987,152
HK&MC 177,622
Korea 178,911
China 111,050
USA 82,872
Euro 59,512
3,511,734
South East Asia 435,383
2,586,428 2,695,615
2,714,065
2,874,702
2,732,549 2,430,119
2,557,128
2,137,138 2,167,952
1,969,151
1,784,185 1,895,702 1,898,854
1,634,790 1,627,229 1,758,006
1,653,908 1,653,654
1,432,315 1,421,550 1,513,597
1,294,758 1,388,305 1,692,063
1,614,803 1,242,598
1,132,592 [1,261,596 ] 1,375,770 1,425,485 1,054,708 1,019,441
1,071,975
1,183,341 884,397
817,944
1,016,356 527,684 658,757 523,888 561,365 580,072 605,054
412,617 411,416 414,060
479,452
242,902 259,089 223,062 351,301 264,880 458,691 274,035 299,756 330,090 350,054 386,752
212,148 218,045
2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年 2019年 2020年
Japan HK&MC Korea China(PRC) USA Euro South East Asia
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Source: Taiwan Tourism Bureau, Republic of China (Taiwan)

MARKET ANALYSIS (2 OF 4): FOREIGN VISITORS

Jan-Sep in 2021 Foreign Visitors, by Country

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12%
6%
9%
9%
2%
8%
7%
47%
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Jan-Sep in 2020 Foreign Visitors, by Country

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8% 4% 2%
8%
14%
31%
13%
20%
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Foreign Visitors:102,919

Foreign Visitors:1,315,690

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Source: Taiwan Tourism Bureau, Republic of China (Taiwan)

MARKET ANALYSIS (3 OF 4): IN/OUTBOUND TRAVELERS

Jan-Sep in 2021  & 2020  in-bound & out-bound traveler analysis   (unit: # of people)

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2,500,000 2,261,190
2,000,000
Jan-Sep in 2020
1,500,000 1,315,690
Jan-Sep in 2021
1,000,000
500,000 285,002
102,919
0
2020 2021 2020 2021
in-bound out-bound
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Source: Taiwan Tourism Bureau, Republic of China (Taiwan)

MARKET ANALYSIS (4 OF 4): IN/OUTBOUND TRAVELERS

2020 First Hotel, Origin of Clients 2019 First Hotel, Origin of Clients

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3% 3% 3%
4%
15%
25%
69%
78%
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Note: South East Asia includes China, Hong Kong, Macau, and Taiwan; North East Asia includes Japan and Korea North America includes USA and Canada

Source: First Hotel

COMPETITOR ANALYSIS (1 OF 2)

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Unit: New Taiwan Dollars
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Taiwan Hotel Industry 2020 & 2019 Earnings per Share
Category Stock # Company Name 2020 2019 YoY Change
Main Board 2702 Hotel Holiday Garden (2.45) (0.04) (2.41)
2704 Ambassador Hotel 0.01 1.05 (1.04)
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	COMPETITOR ANALYSIS (1 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (1 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (1 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (1 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (1 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (1 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (1 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (1 OF 2) Unit: New Taiwan Dollars
	Taiwan Hotel Industry 2020 & 2019 Earnings per Share Category Stock # Company Name 2020 2019 YoY Change Main Board 2702 Hotel Holiday Garden (2.45) (0.04) (2.41) 2704 Ambassador Hotel 0.01 1.05 (1.04)
		Taiwan Hotel Industry 2020 & 2019 Earnings per Share
		Category	Stock #	Company Name	2020	2019	YoY Change
		Main Board	2702	Hotel Holiday Garden	(2.45)	(0.04)	(2.41)
			2704	Ambassador Hotel	0.01	1.05	(1.04)
			2705	Leo Foo	(2.01)	(2.93)	0.92
			2706	First Hotel	0.32	1.06	(0.74)
			2707	Regent	5.18	10.58	(5.40)
			2712	Far Glory	0.93	(0.15)	1.08
			2722	Chateau	0.79	0.36	0.43
			2724	Fx Hotels-KY	(2.21)	(0.43)	(1.78)
			2736	Hoya Resort	0.18	(0.13)	0.31
			2739	MHH	(3.15)	1.11	(4.26)
			2748	Fleur de Chine	1.44	2.80	(1.36)
		OTC	2718	Pleasant Hotels	(2.89)	0.02	(2.91)
			5364	LEALEA HOTELS	(2.11)	(1.98)	(0.13)
			5701	Janfusun	(0.54)	(0.76)	0.22
			5703	Landis Taipei	(2.36)	(0.44)	(1.92)
			5704	Hotel Royal	2.41	0.86	1.55
			8077	Green World Hotels	(7.82)	0.55	(8.37)

Source: Market Observation Post System

COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars

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Taiwan Hotel Industry 2021 Q1~Q3 & 2020 Q1~Q3 Earnings per Share
First uarter com arison
q p
Category Stock # Company Name
2021Q1~Q3 2020Q1~Q3 Y o Y Change
Main Board
2702 Hotel Holiday Garden (1.18) (1.18) 0.00
2704 Ambassador Hotel (0.14) 0.13 (0.27)
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	COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars	COMPETITOR ANALYSIS (2 OF 2) Unit: New Taiwan Dollars
	Taiwan Hotel Industry 2021Q1~Q3 & 2020Q1~Q3 Earnings per Share Category Stock # Company Name Firstquarter comparison 2021Q1~Q3 2020Q1~Q3 Y o Y Change Main Board 2702 Hotel Holiday Garden (1.18) (1.18) 0.00 2704 Ambassador Hotel (0.14) 0.13 (0.27)
		Taiwan Hotel Industry 2021Q1~Q3 & 2020Q1~Q3 Earnings per Share
		Category	Stock #	Company Name	Firstquarter comparison
					2021Q1~Q3	2020Q1~Q3	Y o Y Change
		Main Board	2702	Hotel Holiday Garden	(1.18)	(1.18)	0.00
			2704	Ambassador Hotel	(0.14)	0.13	(0.27)
			2705	Leo Foo	(2.90)	(1.70)	(1.20)
			2706	First Hotel	0.14	0.16	(0.02)
			2707	Regent	14.78	3.44	11.34
			2712	Far Glory	(0.15)	0.75	(0.90)
			2722	Chateau	(0.13)	0.64	(0.77)
			2724	Fx Hotels-KY	(0.30)	(1.95)	1.65
			2736	Hoya Resort	(1.28)	(0.36)	(0.92)
			2739	MHH	(5.19)	(2.71)	(2.48)
			2748	Fleur de Chine	(1.34)	0.47	(1.81)
		OTC	2718	Pleasant Hotels	(0.28)	(2.62)	2.34
			5364	LEALEA HOTELS	(3.16)	(1.76)	(1.40)
			5701	Janfusun	(0.56)	(0.29)	(0.27)
			5703	Landis Taipei	(1.45)	(2.17)	0.72
			5704	Hotel Royal	0.79	1.79	(1.00)
			8077	Green World Hotels	(2.46)	(7.24)	4.78

Source: Market Observation Post System

FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand

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2021 (as of Sep. 30 [th] ) 2020 (as of Dec. 31 [th] ) 2020 (as of Sep. 30 [th] )
Item
Amount Percentage Amount Percentage Amount Percentage
Current Asset 2,681,367 26% 2,553,400 24% 2,726,992 26%
Non-Current Asset 7,621,301 74% 7,939,129 76% 7,727,064 74%
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	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand	FINANCIAL OVERVIEW：BALANCE SHEET Unit: NTD thousand
	Item 2021 (as of Sep. 30th) 2020 (as of Dec. 31th ) 2020 (as of Sep. 30th) Amount Percentage Amount Percentage Amount Percentage Current Asset 2,681,367 26% 2,553,400 24% 2,726,992 26% Non-Current Asset 7,621,301 74% 7,939,129 76% 7,727,064 74%
		Item	**2021 (as of Sep. 30th) **		**2020 (as of Dec. 31th ) **		**2020 (as of Sep. 30th) **
			Amount	Percentage	Amount	Percentage	Amount	Percentage
		Current Asset	2,681,367	26%	2,553,400	24%	2,726,992	26%
		Non-Current Asset	7,621,301	74%	7,939,129	76%	7,727,064	74%
		Total Asset	10,302,668	100%	10,492,529	100%	10,454,056	100%
		Liili
		Current abty	198,993	2%	139,182	1%	354,665	3%
		Non-Current Liability	1,298,894	13%	1,326,288	13%	1,307,908	13%
		Total Liability	1,497,887	15%	1,465,470	14%	1,662,573	16%
		Paid-in Capital	4,999,984	48%	4,999,984	48%	4,999,984	48%
		Additional Paid-in Capital	76,031	1%	76,031	1%	76,031	1%
		Retained Earnings	3,177,146	31%	3,183,506	30%	3,103,454	29%
		Other Equities	551,620	5%	767,538	7%	612,014	6%
		Total Equities	8,804,781	85%	9,027,059	86%	8,791,483	84%
		Book Value per Share	17.61		18.05		17.58

Source: First Hotel

FINANCIAL OVERVIEW： INCOME STATEMENTS Unit: NTD thousand

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Item 2021Q1 2021Q2 2021Q3 2021Q1~Q3 2020Q1~Q3
Revenue 69,489 58,273 50,400 178,162 191,776
Rental revenue 57,486 51,954 43,909 153,349 152,348
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	FINANCIAL OVERVIEW：INCOME STATEMENTS Unit: NTD thousand	FINANCIAL OVERVIEW：INCOME STATEMENTS Unit: NTD thousand	FINANCIAL OVERVIEW：INCOME STATEMENTS Unit: NTD thousand	FINANCIAL OVERVIEW：INCOME STATEMENTS Unit: NTD thousand	FINANCIAL OVERVIEW：INCOME STATEMENTS Unit: NTD thousand	FINANCIAL OVERVIEW：INCOME STATEMENTS Unit: NTD thousand	FINANCIAL OVERVIEW：INCOME STATEMENTS Unit: NTD thousand	FINANCIAL OVERVIEW：INCOME STATEMENTS Unit: NTD thousand
	Item 2021Q1 2021Q2 2021Q3 2021Q1~Q3 2020Q1~Q3 Revenue 69,489 58,273 50,400 178,162 191,776 Rental revenue 57,486 51,954 43,909 153,349 152,348
		Item	2021Q1	2021Q2	2021Q3	2021Q1~Q3	2020Q1~Q3
		Revenue	69,489	58,273	50,400	178,162	191,776
		Rental revenue	57,486	51,954	43,909	153,349	152,348
		Hotel revenue	12,003	6,319	6,491	24,813	39,428
		Operating cost	16,449	12,587	13,520	42,556	51,986
		Gross profit	53,040	45,686	36,880	135,606	139,790
		Operating expenses	5,223	5,708	7,401	18,332	20,363
		Operating income	47,817	39,978	29,479	117,274	119,427
		Non-operating income	(57,393)	(14,055)	34,571	(36,877)	(16,852)
		Pre-tax income	(9,576)	25,923	64,050	80,397	102,575
		Income tax expense	(2,329)	5,739	8,347	11,757	21,381
		Net income	(7,247)	20,184	55,703	68,640	81,194
		Other comprehensive income(OCI)	(122,394)	(2,539)	(90,985)	(215,918)	(432,162)
		Total comprehensive income	(129,641)	17,645	(35,282)	(147,278)	(350,968)

Source: First Hotel

CONCLUSION

▪ Continuous effort to maintain competitiveness in current market.

▪ We will try to cope with Taiwan Government’s various domestic travel stimulus programs in order to attract more local customers.

▪ Look for diversified investment opportunities to enhance company yield.

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Source: First Hotel