PCSC — Annual Report 2020

Mar 24, 2020

President Chain Store Corp.

2912 TT

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2019 Highlights

Listed for the first time on DJSI Word Index and DJSI Emerging Markets Index. Stayed on the FTSE4Good Index, MSCI Global Sustainability Index, and TWSE Corporate Governance 100 Index. Ranked top 5% by TWSE on Corporate Governance.

Number of 7-ELEVEN stores in Taiwan exceeded 5,600.

Multidimensional lifestyle and cobranded stores satisfied different needs of customers in different shopping districts.

Fresh foods revenue contribution exceeded 20%, thanks to equipment and process optimization, product upgrade, collaboration with famous restaurants & chefs, and capitalizing on customer trends.

CITY CAFE revenue exceeded NT$14 billion in 2019. Premium coffee made more widely available.

Launched Myship, a comprehensive and secure transaction platform. Handled more than 200 million EC parcels.

Number of OPENPOINT members surpassed 6.5 million. Member contribution kept increasing thanks to more engaging membership program.

Introduced various payment tools. Expanded the use of OPENPOINTS through diversified collection and redemption campaigns.

Franchisee percentage and renewal kept increasing.

Number of 7-ELEVEN stores in Philippines exceeded 2,800.

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Financial Highlights

 Historical Revenue and Profit

Unit: NTD billion

2015 2016 2017 2018 2019 YOY

Revenue 133.4 140.1 144.5 154.1 158.0 2.6% (Company Only) Revenue 205.5 215.4 221.1 244.9 256.1 4.6% (Consolidated) Net Profit 8.2 9.8 31.0 10.2 10.5 3.3% One-off gain from - - - - - 20.4 Starbucks deal EPS (NT$) 7.92 9.46 29.83 9.82 10.14 +0.32

1. The one-off gain from Starbucks deal includes disposal gain of Starbucks Shanghai, remeasurement gain of Starbucks Taiwan and related expenses.

2. The net profit decline in 2018 was due to the one-off gain from Starbucks Shanghai deal in 2017.

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Sales and Profitability (Company)

Sales

Store No. and PSD

Unit: NTD billion

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Note ： 2019 PSD-sales grew if the impact from the cigarette and commission revenue were removed.

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GP

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Note : Adjusted for the one-off gain from the BankPro in 2016; one-off gain from the Starbucks deal in 2017.

Note ： 2019 GPM grew if commission revenue were removed.

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Sales and Profitability(Consolidated)

Store No.

Sales

Unit: NTD billion

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Note ： 2015~2017 store no. included Starbucks Shanghai.

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Note : Adjusted for the one-off gain from the BankPro in 2016; one-off gain from the Starbucks deal in 2017.

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Steady ROE and ROA

Company ROE

Consolidated ROE

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Consolidated ROA

Company ROA

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Note : Adjusted for the one-off gain from the BankPro in 2016; one-off gain from the Starbucks deal in 2017. 2019 ROA grew if we excluded the asset-related impacts from IFRS 16.

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Steady Cash Flow

Net Cash(Consolidated)

Unit: NTD billion

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2015 2016 2017 2018 2019
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Sustainable Cash Dividend

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Unit:NTD
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Note: The cash dividend has not been approved by the shareholders meeting.

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2020 Outlook

PCSC keeps exceeding customer’s expectation and evolving into a reliable service platform.

Maintaining store expansion of 7-ELEVEN Taiwan to drive future growth.

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Introducing diversified lifestyle stores with boundless possibilities to meet customer’s needs.

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Providing quality, tasty, innovative and convenient fresh food service.

Strengthening CITY CAFE brand value by expanding !+? CAFE RESERVE and CITY 5 PRIMA. Offering convenience to customers by mobile pick up function.

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Introducing high-quality, exclusive and differentiated products from around the world.

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Developing a comprehensive digital platform by leveraging online to offline integration.

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Reinforcing OPENPOINT program to enhance the contribution and stickiness of members.

Leveraging high technology to enhance customer experiences and improve efficiency.

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Up in quantity and quality for 7-ELEVEN Philippines.

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The End

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