Hunya — Interim / Quarterly Report 2022

Dec 27, 2022

HUNYA FOODS CO.,LTD.

Institutional Investor’s Conference

2022.12.28

Safe Harbor Notice

• The statements of our financial figures are presented in accordance with IFRS. All the financial figures have been reviewed by CPAs.

• Except as required by law, we obtain the ownership of the statements. Any unauthorized use is not permitted.

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01 Company Overview 02 Core Operational Capabilities and Strategies 03 Financial Report 04 Business Outlook for 2023

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01 Company Overview

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公司簡介

• Founded Date : 1976/06/14

• Listed in TSE : Year 2001

• ：

• Product Industry Food manufacturing

• Paid-up Capital : NT$1.08 Billion

• Employee Amount : Around 725 staffs

• Year 2020 Consolidate Sales : NT$1.76 Billion

• Major Products & Service: Chocolate, Biscuits, Bride Assortment cookies, Moon Cakes and Chocolate Museum (Republic of Chocolate)

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ESG Achievement

SDG Strategic Blue Print

Cores & Missions

• For Consumer Sharing Sweetness and Happiness Enjoy the moment

Trust

（＝From Management Performance）

(Product)

Create a Trusting Image through transparent and trustable management, well controlled internal management, 100% Safety Food principle, and a happy working environment.

• For Supplier

Passion

Collaborate and （＝From Execution and Policy） Prosperity Linking Hunya company’s passion to social, Relationships environmental and economical sides as well as taking actions to create dynamic values to the people.

(Supplier Management)

Trust

Innovation

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Passion
Innovation
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（＝From Innovative Performance）

Subverting traditional commercial promotion techs by thinking of innovative ways to breakthrough all the challenges and extend the company’s market.

• For Future Consumers

Inherit Fresh and Positive Energy

(Environment)

• For Society Inject Positivity and Love (Society)

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• For Employee Create Energetic and Friendly Working Environment (Employee Caring)

ESG Specific practices and results

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01 02 03
Carbon reduction
Additives reduction
01 Waste reduction Scope 1& 2
launch clean label
decrease 8.13% in
Decrease plastics waste
In 3 product lines
-59.6 tons v.s. 2020 FY 2021 v.s 2010
With 16 categories goods
04 05 06
04
Pollution prevent Circular economy Renewable energy effect
Investment Sustainability goods Increase green power capacity
NT$ 5.9 millions Accounted 26.3% power supply
Pineapple Cake Gift Box
In solar energy
07
07 08 09
Charity Proportion of locally
Friendly workplace
Cherish Food project purchased materials
Enhance job safety
collaboration
local procurement
Frequency-Severity
Enterprise charity proportion
Indicator: 1.41
benefit 2,295 people reach 88% (via TWD)
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Sustainability Award

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Sustainability Award
台灣食品業唯㇐得獎
2021
• TCSA Sustainability
• AREA Green
Report - Silver
Leadership
2019 Award (Food and
• TCSA Award
• Solar Powered Beverage Category)
Sustainability
• TCSA
System setup • Hunya • BS 8001 Circular Report – Silver
Sustainability
Sustainable Award
Economy Award
Report –
Blue Print • Social Innovation
Gold Award
2018 Award – Social Co-
2020
Prosperity Award
2022
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R & D and Product Achievements

2022 FOOD AWARD & CERTIFICATION

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GLOBAL AWARD

ITQI Global Sweet snack、snack bar、crackers、chocolate、 confectionery etc.

• Global 319 stars

• TAIWAN 87 stars

• HUNYA 6 stars (Taiwan accounts for 7%/ Global account for 1.9%)

2022 FOOD AWARD & CERTIFICATION

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2022 FOOD AWARD & CERTIFICATION

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Management Results

Hunya Quality System and International Product Certification

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fitwel International Certification of Healthy and Friendly Workplace

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Fitwel is the world's leading healthy building certification, dedicated to improving the health and sustainability of people, employees, buildings and communities.

The total points are awarded with 1~3 star green building

certification. This certification standard is operated by the Center for Active Design established by the former New York Mayor Michael Rubens Bloomberg.

And to cooperate with the international authoritative third-party impartial unit UL to develop the international market, not only has international credibility, but also has been included in the U.S. government procurement guidelines.

The development of intellectual manufacturing

• Stage-I AI Landing evidence-77 Nougat A-Line Digitization of the production line+AI Light Benefit collection

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• Stage-II Digitization+AI Light in progress

• 77 Nougat C-Line embed

• HUNYA MFG TPEM (Total Productive Equipment Management)

Merger Synergy of Acquiring Croissants Bakery

• Develop fresh/frozen products, introduce some production lines into the Bade factory area for centralized management, improve production capacity/manpower utilization to solve the gap between high and low peaks and the difficulty of leveling.

• Croissant Bakery product line can cooperate with the Rivon development strategy to increase the product portfolio efficiency.

• .

• The function of the logistics platform can be combined by the company to play a synergistic effect It has been imported into the unified purchase of raw materials, salary system, sign-off system, internal control system. Plan to implement SAP in the future

• The customer base partially overlaps with the company's, and centralized management plays a .

• synergistic effect

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02 Core Operational Capabilities and Strategies

Food Industry Value Chain

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•Channel Management
•Customer needs •Quality, Food safety
•Logistics Management
Product investigation •Production and Marketing
Manufacture Sales •Sales Forecast
Development •New product Management
•Marketing Management
development
•Manufacturing Efficiency
•Brand Management
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• •

• Market Research Company Food Machine

• • Raw Materials and Material Manufacturer •

• Companies

• • Academic Institution WMS MES）

• Information System（ERP WMS MES）

• Efficient use of resources

• • Waste（Reduce or Reuse）

• Warehousing and Logistics Company

• • Market Research Company

• • Advertisement Company

• • Dealer

c

Hunya's core competence

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• R & D Manufacturing Brand Development • Chocolate • 77 Nougat 、Wafe Pie、 • Always、Chofers ⋯⋯ Bakery products (biscuits, cakes, bread) • RIVON

• • OEM

• Channel Management • CVS、PX、HYPER、PCS、 SUPER

• • Own Channel

Brand Strategy-1

❶ Enhance brand power!

• Maximize the synergy of brand marketing ，With 77 parent brands + 7 sub-brands integrated marketing to achieve double-digit actual sales growth compared with the same period last year ! From :

• 1) Classic brands are exposed at the same time, gaining more attention from consumers.

• 2) A halo effect is produced, and each brand adds to each other's classic, high-quality, innovative, and high-life brand images!

• 3) Joint negotiations increase bargaining power for more favorable media purchase terms and greater visibility。

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Brand Strategy-2

❷ Expand new consumer groups− GenZ!

• According to GenZ‘s consumer insights, media audio-visual habits and preferred product tastes, optimize marketing communication content, media placement, and product benefits, rejuvenate the brand and increase the proportion of GenZ consumer groups!

❸ Consolidate exis�ng customers − New products that meet market

trends and consumer needs!

In addition to continuing to consolidate existing consumers with classic products, as health awareness gradually becomes the mainstream trend, the sales proportion of healthy concept snacks will be expanded, such as Always’s high-volume chocolate, 100% additive-free We Made, and future new products.

NEW!

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Status, Challenges and Strategies of Channel

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Solution

The dominance of modern channels,  Product strategy for the tightening of bargaining space compartmentalized channels  A small number of diverse The transformation of the channel, a production line layouts and R&D

small amount of diversified demand, strategies and the increase of the cost of R & D and production  Deployment of digital, self-owned channels and talents  Become a partner in channel Prosperity of E-commerce product development

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R&D Manufacturing Strategy

• Use good raw materials and good methods to make delicious products. Use local ingredients to create local specialty products in Taiwan. Strictly select raw materials from international sources.

• International craftsmanship, using high-standard equipment such as "chocolate grinding equipment, DARK chocolate production line, wheat chocolate production line, 77 Nougat production line, wafer production line, pine cone production line". And attach importance to the inheritance of technology and experience.

• Artificial Intelligence Manufacturing

•

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03 Financial Report

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Operating Revenue & Gross Profit Margin

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In Million NTD
Consolidated Sales Gross Margin
5,000
4,500 30.0%
28.6%
4,000
27.0% 28.0%
3,500
26.7%
25.8%
3,000
26.0%
2,500
1,973
2,000 1,865
1,755
1,637 24.0%
1,500
1,000
22.0%
500
- 20.0%
2018 2019 2020 2021
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Dividend Policy

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Dividend In NTD
1 500%
400%
0.75
300%
0.5
200% 200%
Stock Dividend
0.25 0.50 100% Cash Dividend
EPS
0.15 0.30
0.20
0% 0% Payout ratio
0 0.00
2019 2020 2021
-100%
-0.25 -0.25
-200% -200%
-0.5 -300%
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Consolidated Income Sheet – QoQ Chart

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Consolidated Sales Gross Margin Operating Margin
In Million NTD
2,000 32% 32% 38%
1,800 27% 27% 27%
24% 28%
21%
1,600
15%
1,400 18%
10%
1,200
8%
3% 2%
1%
1,000 -1%
-5%
-2%
800
-10%
600 -12%
-28%
400
487 541 529 545 533 -22%
200 404 384
282
- -32%
2020.4Q 2021.1Q 2021.2Q 2021.3Q 2021.4Q 2022.1Q 2022.2Q 2022.3Q
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Consolidated Income -YoY

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Consolidated Income Statement -QoQ

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Consolidated Balance Sheets and Financial Ratios

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Statements of Cash Flows

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Investment-Financial assets at fair value though profit or loss- non-current

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Note:The issuance conditions of private placement increase cannot be freely transferred within 3 years.

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04 Business Outlook for 2022

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Business Outlook

The main theme of the economy in 2023 is disinflation, as oil prices stabilize, food shortages improve, and supply chain bottlenecks are also opened up. Although there will be no rapid interest rate hikes in 2023, the global interest . rates will remain high at the cost of low growth globally Hunya's business axis Hunya's customer-centric product development orientation, steady and continuous investment in new products, new production lines and fresh food categories, caters to Gen Z and health concepts, even if he economic outlook is chaotic, consumers will not reduce spending.

• Invest in ESG/FSSC to strengthen food safety risk control, upgrade food safety and obtain FSSC certification.

• Digital transformation of artificial intelligence manufacturing and production fields, developing towards WMS/MES.

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謝謝聆聽 THANK YOU

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