FWUSOW — Investor Presentation 2021

Aug 31, 2021

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2021
Investor Conference
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Stock Code ： 1219

2021/09/03

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Disclaimer

• The consolidated financial information contained in this presentation are based on International Financial Reporting Standards (IFRS) and also are audited by CPA.

• This presentation contains projections and forward-looking statements that may reflect the Company’s current views with respect to future events. However, subject to various risks and uncertainties, no assurance can be given that actual results will be consistent with these forward-looking statements.

• Unless mandated by laws and regulations, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Contents

1. Company Profile and Achievements

2. Financial Results

3. Future Outlook

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1. Company Profile

• Year Established ： 1920

• Date of Listing ： December 1, 1990

 ： Paid-in Capital NT$3.22 billions

 Revenue in 2020 ： NT$12.32 billions

 Employee Count ： 641

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Products

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Cooking Oil Soybean Oil, deep frying oil, palm oil, sesame oil, sunflower oil, canola oil, peanut oil, and flavored oil

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Grain Products Cereal, muesli, multi-grain with dried fruit, snacks, pressed barley oatmeal, and barley

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Pet Foods Dog and cat food, koi feed, aquarium fish feed, bird seed, and pet accessories

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Livestock / aquaculture feeds

Feeds for broilers, pigs, ducks, tilapia, milkfish, striped bass, and saltwater fish

Livestock / aquaculture products Forage grazed pigs, cage free broilers, range free eggs, broilers, bonito flakes, and fish fillet

Agricultural Materials Organic fertilizer, organic compost, and microbial agents （ fertilizer & agricultural use ）

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2020 Achievements

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• EPS NT $1.9 cash dividend of NT$1/ share

• (recent high)

• Compared to 2019, growth in operating income increased 299%

• Expanded the sales volume in circular agricultural

• products; organic farming advocacy; Green Mark Label products, and sales volume increased 21.5%

• Received Taiwan Corporate Sustainability

• Awards (TCSA) – Silver for 2019 CSR

• Received TITA 17th annual Taiwan Golden Root Award

• Proactively pursuing AI manufacture, operation, and agri-food

• circular economy

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Awards & Recognitions

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TCSA- Silver for 2019 CSR

2020 - 17th annual Taiwan Golden Root Award

Excellent 2020 - 6th annual Enterprise of GOOD award Local Grown from TGIA Rice and Grains - Paramount Achievement

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Agri-Food Circular Economy

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2019-2020 Di ital Im lementation g p

Smart Manufacturing

• ICT of ITRI

• ITRI Techonology Services

• Cooking oil smart manufacturing and prediction system

• Organic fertilizer production with AI Management

• Implementation of safety precaution monitoring and disaster prevention systems in our plants

Fwusow Industry Digital Implementation

Smart Operations

• RISD of III

• Developed custom mobile sales app

Talent Training

• 360d Human Resource (Talent Recruitment, Training courses)

• ITRI & III (Technology Transfer)

• KPMG(Smart Management Training Sessions)

• Taiwan AI Academy, Feng Chia University (Basic courses), National Tsing Hua University(Projects)

2. 2021 Financial Results

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 2021 H1 Consolidated Income Statement

Unit ： NT$ thousands

	Y2021	Y2020	Y2019
Unit: NT$ thousands	H1	H1	H1
Operating Revenue	7,162,575	5,908,028	5,978,789
Gross Profit	815,480	574,969	493,576
Gross Margin %	11.4%	9.8%	8.2%
Operating Profit	283,110	77,076	34,671
Operating Profit Margin%	4.0%	1.3%	0.5%
Net Income	263,528	310,146	7,021
Net Profit Margin %	3.7%	5.3%	0.1%
Net Income attributable to parent	282,510	342,093	44,315
EPS (NT$)	0.88	1.06	0.14

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 2016 ~ 2021 H1Consolidated Income Statement

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	Unit：NT$ thousands
Operating Revenue Year	EPS Net Income attributable to parent Gross Profit
	Amount NT$ % Amount NT$ % (NT$/ share)
2016 10,965,542	980,842 8.9 156,018 1.4 0.48
2017 10,822,788	913,460 8.5 140,727 1.3 0.44
2018 11,709,984	790,072 6.7 (11,233) (0.1) (0.03)
2019 12,259,254	995,926 8.1 203,114 1.6 0.63
2020 12,324,165	1,358,002 11.1 615,277 4.9 1.91
2021 H1 7,162,575	815,480 11.4 282,510 3.9 0.88

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 2016 ~ 2021 H1 Feed Division Financial Performance

Unit ： NT$ thousands

Year	Operating Revenue	Operating Profits	Gross Margin
2016 2017 2018 2019 2020 2021 H1	4,013,863 3,367,410 3,605,509 3,982,148 3,810,163 1,974,980	271,027 223,714 89,630 283,243 371,092 115,834	6.8% 6.6% 2.5% 7.1% 9.7% 5.9%

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 2016 ~ 2021 H1 Food Division Financial Performance

Unit ： NT$ thousands

Year	Operating Revenue	Operating Profits	Gross Margin
2016 2017 2018 2019 2020 2021 H1	5,726,258 5,572,754 5,763,196 5,791,647 5,315,113 3,292,157	308,207 160,456 216,928 256,906 365,022 290,283	5.4% 2.9% 3.8% 4.4% 6.9% 8.8%

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 2016 ~2021 H1 Meat Processing Division Financial Performance

Unit ： NT$ thousands

Year	Operating Revenue	Operating Profits	Gross Margin
2016 2017 2018 2019 2020 2021 H1	778,909 969,123 1,129,379 1,145,052 1,263,805 580,779	(158,942) (138,915) (119,039) (143,763) (94,687) (27,464)	-20.4% -14.3% -10.5% -12.6% -7.5% -4.7%

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 2021 H1 Consolidated Balance Sheet

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Unit ： NT$ thousands

	2021/6/30			2020/12/31		2020/6/30
	NT$	%		NT$	%	NT$	%
Current Assets	5,110,967		54	4,148,204	49	4,337,239	50
Cash & Cash Equivalent	661,703		7	943,986	11	1,149,033	13
Note Receivable	315,940		3	344,939	4	280,372	3
Accounts Receivable	1,162,498		12	1,050,467	12	998,147	12
Inventory	2,694,526		29	1,517,090	18	1,665,232	19
Non-Current Assets	4,357,129		46	4,401,859	51	4,364,720	50
Property, Plant & Equipment	3,791,996		40	3,877,047	45	3,899,830	45
IEQU	359,937		4	332,027	4	304,488	4
Total Assets	9,468,096		100	8,550,063	100	8,701,959	100
Current Liabilities	2,575,443		27	2,007,574	23	2,344,552	27
Short-term Debts	1,306,299		14	672,414	8	999,364	12
Note Payable	137,289		2	129,272	1	119,420	1
Accounts Payable	255,267		3	218,290	3	248,704	3
Non-Current Liabilities	4,690,357		50	4,106,649	48	4,517,765	52
Long-term Debts	1,628,832		17	1,655,956	19	1,724,515	20
Total Liabilities	4,690,357		50	4,106,649	48	4,517,765	52
Capital Stock	3,220,139		34	3,220,139	38	3,220,139	37
Additional Paid-In Capital	14,358		0.1	14,358	0.2	14,358	0.1
Retained Earnings	1,473,738		16	1,191,228	14	917,330	10
Total Shareholders' Equity	4,777,739		50	4,443,414	52	4,184,194	48
Equity Attributable to Owners of Parent	4,693,233		50	4,413,032	52	4,134,993	48
Total Liabilities & Shareholders' Equity	9,468,096		100	8,550,063	100	8,701,959	100
Key Financial Ratios
Current Ratio	1.98			2.07		1.85
Return on Equity %	5.8%			13.5%		7.7%
Return on Assets %	3.1%			6.9%		3.7%
Debt Ratio %	49.6%			47.8%		52%
Net Asset Value per share (NT$)	14.57			13.70		12.84

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3. Future Outlook

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Expedite AI implementation with digital transformation to improve the overall operational efficiency

Effective use of social media to increase sales in e- 02 commerce and raise awareness in products and brand loyalty in consumer choice

Expand vertical integration of the industries, and 03 increase business operations

Using artificial intelligence applications for poultry 04 farming to assist in management, provide professional know-hows and raise feed efficiency

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Healthy Food, Healthy People. Thank you!

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