OCEANIC Bev. — Call Transcript 2019

Nov 29, 2019

==> picture [182 x 142] intentionally omitted <==

公司簡稱：大飲 股票代號：1213

OCEANIC BEVERAGES CO., INC.

INVESTOR CONFERENCE

Time A enda g Brief summar y Q&A

15:00~15:20 15:20~15:40

《Nov. 29, 2019》 natural. Safe. health

Disclaimer

1. The consolidated financial figures are compiled in accordance with the international financial reporting standards(IFRS) and reviewed by CPA.

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

3. This presentations and its contents may not be arbitrarily used or copied by any third party without the prior written permission of the Company.

Company Profile

The Company was founded in the 54th year of the Republic Era. "Apple Sidra", the well-known brand in beverages market, has been introduced in Taiwan markets more than 5 decades popularizing as well as around the world. Oceanic Beverage Co., Inc. 、 upholds a diversified business strategy, such as apple carbonated drink ready-to-drink 、 、 、 tea fruit juice yogurt drink distilled battled water and other high-quality beverage product lines are selling in the main retails channels and gain great popularity.

During the period the company encountered the most important event since its foundation, We would like hereby to present our deep thanks to the all consumers who have supported “Apple Sidra” with their loyalty all the times, we believe that "Quality and The business honor " are the basis of sustainable business, but also the competition in markets. We will strengthen the market activities and service to feed back to the consumer’s supports.

Industry overview

1. Industry status and development The industry prosperity status is closely related to the costs of domestic raw material, therefore, it is necessary to expand market share by the activity of product marketing. In order to get the food industry's competitive advantage in the future, brand loyalty must be built up with product value to increase market shares.

2. Industries relevance - Upstream, Midstream and downstream :

、 Upstream Stock farming packaging 、fuel material etc... Midstream R&D, manufacturing, packaging Downstream Transportation, warehousing, sales and other industries

Industry overview

1. Product development trend and competition The volume of soft drink sold in supermarkets and hypermarket is about 50% ratio of the beverage market ; to enhance product marketing activities in order to keep the annual revenue growth steady. The volume in Convenience stores’ sold is about 18% ratio of the beverage market

“Health and functionality drink” is the current trend in beverage market. “Apple Sidra” and “Yogurt Drinks” , earning annual revenue growth, the natural soft drinks conform to the consumption characteristics of the mainstream in the future.

Market competition：Under the marketing dominance of large-scale retailers, supermarkets and super-business channels, the contract costs hike up year by year. Therefore, it is necessary to create the best cost effect with marketing promotion, product innovation and forms a partnership with the distributors and retailers for sustainable growth.

Performance summary

==> picture [278 x 456] intentionally omitted <==

Affected by the global economic downturn and the prices of bulk raw materials hiking up. The Company will continuously strive to search various raw material resources, stabilize the supply sources and reduce purchase costs, strengthen market development operations to expand the ratio of market shares.

Financial summary

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unit: NT $ thousand	Unit: NT $ thousand	Unit: NT $ thousand	Unit: NT $ thousand	Unit: NT $ thousand	Unit: NT $ thousand	Unit: NT $ thousand	Unit: NT $ thousand
	3Q 2019	%	3Q 2018	%	2Q 2019	%	YoY
Operating Revenue	128,944	100	209,420	100	149,094	100	(38.43)
Net Operating Margin	3,659	3	13,662	7	16,020	8	(73.22)
Operating profit(loss)	(11,889)	(9)	(2,463)	(1)	(15,301)	(7)	(382.70)
Non-Operating Income And Expenses	(3,651)	(3)	(1,784)	(1)	(11,019)	(5)	104.65
Profit before income tax(loss)	(15,540)	(12)	(4,247)	(2)	(26,320)	(12)	(265.91)
Profit for the period(loss)	(12,704)	(10)	(3,564)	(2)	(22,990)	(11)	(256.45)
Basic Loss per share (in dollars)	(0.22)		(0.07)		(0.41)

Conclusion

CONSOLIDATED BALANCE SHEETS

Unit: NT $ thousand

	3Q 2019 %
Current Assets	269,476 20
Noncurrent Assets	1,034,277 80
Total Assets	1,303,753 100
Current Liabilities	336,056 26
Noncurrent Liabilities	396,875 30
Total Liabilities	732,931 56
Total Equity	570,822 44
Total Liabilities And Equity	1,303,753 100

==> picture [266 x 234] intentionally omitted <==

Future prospects

With reference to the domestic and overseas marketing promotion campaigns of each sales channel, will participate different season and festival theme planning marketing activities to increase interaction between consumers and brand loyalty.

In response to the emerging development of E-commerce and global logistics industry, the Company will strive to increase the markets in overseas countries and mainland China in order to embrace prosperity of the future.

“ 、 Healthy Function Natural ” food and beverage are the market's main trend in the future. Innovative research and development in the direction of natural manufacturing process to meet the characteristics of the future consumer mainstream.

Conclusion

The Company will strengthen the audit and control system to enhance the internal performance management, and financial accuracy, human nature administration, personnel rationalization, in order to achieve the goals of sustainable growing .

==> picture [104 x 135] intentionally omitted <==

==> picture [265 x 447] intentionally omitted <==

==> picture [720 x 540] intentionally omitted <==

----- Start of picture text -----

Q&A
----- End of picture text -----

==> picture [308 x 220] intentionally omitted <==

End

==> picture [720 x 78] intentionally omitted <==