GREATWALL — Call Transcript 2021

Sep 30, 2021

Dachan Great Wall Group Conference Call

2021.9.30

Disclaimer

• 1. This presentation contains certain forward-looking statements that are based on current expectations. These forward-looking statements are subject to known and unknown risks as well as uncertain ties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.
• 2. Except as required by law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or others.

• Financials
• Company Updates
• Q & A

Consolidated Income Statement

(mm NTD)	2018		2019		2020		1H2020		1H2021		YoY
Net Revenue	72,443	100.00%	77,770	100.00%	81,651	100.00%	37,483	100.00%	49,755	100.00%	32.74%
Cost of revenue	62,355	86.07%	66,039	84.92%	69,389	84.98%	31,882	85.06%	44,153	88.74%	38.49%
Gross Profit	10,088	13.93%	11,731	15.08%	12,262	15.02%	5,602	14.95%	5,601	11.26%	-0.02%
Operating Exp.	7,815	10.79%	8,010	10.30%	8,050	9.86%	3,690	9.84%	4,284	8.61%	16.10%
Operating Inc.	2,273	3.14%	3,721	4.78%	4,212	5.16%	1,912	5.10%	1,317	2.65%	-31.12%
Net Non-Op. Income	758		131		772		153		351
PBT	3,031	4.18%	3,853	4.95%	4,983	6.10%	2,064	5.51%	1,668	3.35%	-19.19%
PAT	2,414	3.33%	2,974	3.82%	4,072	4.99%	1,695	4.52%	1,312	2.64%	-22.60%
Excl. Minority Interest	2,010	2.77%	2,284	2.94%	3,122	3.82%	1,298	3.46%	1,188	2.39%
EPS(NTD)	2.74		2.92		3.99		1.66		1.52		-8.43%
GPM	13.93%		15.08%		15.02%		14.94%		11.26%
OPM	3.14%		4.78%		5.16%		5.10%		2.65%
NPM	3.33%		3.82%		4.99%		4.52%		2.64%

Performance

Financials by Business Groups

		2020				2Q20				2Q21
(mm NTD)		(A)	(B)	(C)	(D)	(A)	(B)	(C)	(D)	(A)	(B)	(C)	(D)
Agricultural	Amount	22,196.1	7,917.7	30,118.1	2,124.9	5,475.2	1,334.4	6,809.5	559.8	10,493.4	2,271.3	12,764.7	375.3
Food	YoY									91.7%	70.2%	87.5%	-33.0%
Integrated	Amount	11,953.6	100.2	12,055.6	833.3	2,579.7	304.1	2,883.8	235.4	3,346.3	22.6	3,368.9	89.3
Poultry	YoY									29.7%	-92.6%	16.8%	-62.1%
Proccessed	Amount	3,013.6	37.0	3,051.0	136.8	716.6	9.1	725.7	24.1	740.7	7.6	748.3	14.2
Food	YoY									3.4%	-16.1%	3.1%	-41.1%
Food Service	Amount	1,989.7	11.4	2,004.3	-47.3	442.2	0.2	442.4	-23.9	459.2	2.2	461.4	-26.5
	YoY									3.8%	1016.8%	4.3%	11.0%
Southeast Asia	Amount	2,739.3	-	2,739.3	104.3	533.5	-	533.5	51.9	603.8	-	603.8	-76.5
	YoY									13.2%	-	13.2%	-247.4%
East Asia	Amount	39,735.3	35.3	39,770.5	1,598.1	9,399.6	4.0	9,403.6	297.9	11,466.5	8.1	11,474.7	47.9
	YoY									22.0%	100.9%	22.0%	-83.9%

*(A) Revenue From Non-Subsidiary *(B) Interdepartmental Revenue *(C)Total Revenue *(D) EBT From Reportable Segments

Agricultural Food

Total Revenue PBT/Total Revenue (%)

Integrated Poultry

Total Revenue PBT/Total Revenue (%)

Processed Food

Food Services

Southeast Asia

East Asia

Total Revenue PBT/Total Revenue (%)

Hog Division

Prospect

• Market Consolidation
• Low Import Threat: Taste

Monthly Pork Imports

Integrated Poultry

Company Updates

• New Plant & Capex
• NEOPLANT
• Businesses Affected by COVID-19

New Processed Plant

2020 Revenue Generated by End Users

Capital Expenditure

NEOPLANT Based Foods

Chicken Nuggets,

Taiwanese Salt Crispy Chicken

Steak Italian Meatballs

Product Differentiation

NEOPLANT Based Foods light up your plate !!

Second Generation TSP (HMMA)

• Food Service Providers:Easy preparation
• Consumers:Texture better captures characteristics of animal protein

	NEOPLANT	Other Brands
Flavor	勝 Removes distinct soy/vanilla flavor of TVP
Texture	Texture resembles strands of 勝 animal protein. Juicy but not mushy.
Support	勝 Supported by Great Wall Group's resources
Price	略勝 Affordable, but not cheap

Businesses Affected by COVID-19

• Restaurants
• Vegetable Oil
• Poultry