Mao Bao — Call Transcript 2017

Dec 5, 2017

MAO BAO INC. Investor Conference 2017

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Disclaimer

The consolidated financial information included in this presentation were prepared based on IFRS and audited by CPA. The presentation may contain forward-looking information and may differ materially from the actual results. MAO BAO undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.

This presentation may not be quoted or reproduced by 3[rd] parties unless authorized through written permission by MAO BAO INC.

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Part I
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Part III
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Agenda

• Company & Operation Brief

• Eric Chen, General Manager

• Financial Report

• Iris Chen, Accounting Manager

• Q&A

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Part I
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Company and Operation Brief

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Company Profile

Mao Bao Inc. is a listed company based in Taipei, Taiwan. The company was founded in 1978, and for more than 30 years, has been a market leader in providing the highest quality of household and personal care products in Taiwan. We have branch offices in Taichung and Kaohsiung, Taiwan, and offices in Shanghai, China and Ho Chi Minh City, Vietnam. We also have manufacturing plants located in Taiwan and Vietnam.

Mao Bao Inc. continues to meet our consumer demands by offering rich varieties of products across several brands. Our product lines include laundry detergents, fabric softeners and functional additives, dishwashing liquids, household cleaners, personal care products, air fresheners, mosquito repellents series, washing machine and hot water pot cleaners.

Mao Bao products are widely distributed in hyper and supermarkets, warehouse clubs as we as general trades and convenient stores. In addition, we have been providing OEM solutions to our customers in the Asia-Pacific region.

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Corporate vision & Core values

Mao Bao Inc. devoted to offer consumers the solutions on professional fabric care/cleaning, household environment/electronics cleaning and personal care/cleaning, keep the momentum to be the leading brand in Taiwan market as well as expanding the sales marketing to Asia.

Our core values, SIISS, stand for Safety, Innovation, Integrity, Sustainability and Social responsibility.

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MAO BAO INC.
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Operation sites & Sales channels

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Brands & Products

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www.maobao.com.tw
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MAO BAO INC.
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Brand values & Company guidelines

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Related &
Interactive
Texture,
Innovation,
Fashion
Technology, Safety,
Quality
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Think differently Into Blue Ocean Transferring to Digital Sales Stabilization

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Brand Value Pyramid

Company Guidelines

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MAO BAO INC.
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R&D and Products

• Fundamentals: User safety, product quality, technology, user experience, eco-friendly, added value.

• Ingredients: Sustainability, functional performance, cost saving

• Packaging: Sustainability, performance and design

• Categories now: Fabric care cleaning, household and electronics cleaning, personal care

• Categories ongoing: Personal protection, functional fabric care, fabric/personal cleaning for children.

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• Compliance to regulation

• International certification on product or

ingredients

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Manufacturing

• Safety, efficiency, manpower and product quality, sustainability, technology

Marketing

 Consumer needs and insights

• Big data and internet[+ ]

• O2O resource integration

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Market

• Stabilize Taiwan market sales

• Maintaining physical channels and optimize profitability

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• Expanding virtual and professional channels

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• Expanding offshore market (CN/VN/ASEAN)

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Sales channels

• Enhancement on product display/exposure and CRM.

• O2O integration.

• Enhancement on consumer interaction, close monitoring on consumer behavior, dynamic and insights.

• Monitoring and adjusting product strategy with changing channel strategy and consumer behavior.

• Expanding EC and direct sales.

Salesforce

• HR quality and organization structure optimization.

• Optimized job assignment, focus and all in.

• CRM enhancement.

• Focus on value added activities.

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Corporate Social Responsibility

Profit of shareholders Benefits of employees and customers Responsibility to society Sustainability of the earth

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Part II
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Financial Report

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合併損益表

單位: 新台幣仟元

Consolidated Income Statement

Unit: NTD Thousand

	Q3_17	Q2_17	Q1_17	Y2016
營業收入 Revenue	147,467	154,631	145,812	547,151
營業毛利 Gross Profit	65,567	63,753	55,683	223,413
營業淨利(損) Operating Income(Loss)	5,436	839	(3,309)	(22,274)
稅前淨利(損) Profit Before Tax	6,313	1,558	(3,738)	(24,594)
本期淨利(損) Net Income(Loss)	3,411	1,010	(3,327)	(24,209)
淨利(損)歸屬於母公司 Profit (Loss)Attributable to Owner	3,411	1,010	(3,327)	(24,209)
營業毛利率 Gross Profit Margin	45%	41%	38%	41%
營業淨利(損)率 Operating Income(Loss) Margin	4%	1%	-2%	-4%

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合併資產負債表

單位: 新台幣仟元

Consolidated Balance Sheet

Unit: NTD Thousand

Q3_17	Q3_17	Q2_17 Q1_17 Y2016
現金與約當現金 Cash and cash equivalents 80,430 無活絡市場之債務工具投資-流動 Debt Investments Without Active Market 29,582 應收帳款與應收票據 Notes & Accounts receivable 111,464 存貨 Inventories 101,177	15% 5% 20% 18%	74,006 14% 55,111 10% 121,006 20% 33,645 6% 33,053 6% 30,934 5% 110,507 20% 114,636 21% 97,091 16% 101,018 18% 113,633 21% 115,465 19%
淨固定資產 Property, plant and equipment 194,700 無形資產 Intangible asset 2,503	35% 1%	196,850 36% 198,302 36% 201,999 34% 2,773 1% 3,042 1% 3,317 1%
其他資產 Others asset 32,272	6%	29,881 5% 31,403 5% 27,911 5%
資產總計 Total Assets 552,128	100%	548,680 100% 549,180 100% 597,723 100%
應付帳款 Notes & Accounts payable 111,045	20%	108,831 20% 109,154 20% 151,740 26%
其他負債 Others Liabilities 27,716	5%	29,690 5% 31,207 6% 30,673 5%
負債總計 Total Liabilities 138,761	25%	138,521 25% 140,361 26% 182,413 31%
股東權益總計 Total Shareholders Equity 413,367	75%	410,159 75% 408,819 74% 415,310 69%

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Part III
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Q&A

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居家有毛寶 事事都美好

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