PCSC — Investor Presentation 2019

Mar 18, 2019

President Chain Store Corp. Investor Conference

March 18, 2019

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Agenda

 2018 Highlights and Results

 Outlook

 Ending Remarks

 Q&A

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2018 Highlights

1. A constituent of the FTSE4Good index, MSCI Global Sustainability Index, and TWSE Corporate Governance 100 Index. Ranked top 5% by TWSE’s Corporate Governance Evaluation. Named among top 250 global retailers by Deloitte, while ranking rise for the 3rd consecutive year.

2. Taiwan 7-ELEVEN exceeded 5,300 stores. Introduced lifestyle stores in various locations to meet the diversified needs.

3. Launched Taiwan’s first unmanned shop, the X Store.

4. CITY CAFE revenue exceeded NT$13 billion in 2018. New product line launched as another growth driver.

5. Fresh food contribution reached new high, thanks to equipment and products upgrade, process optimization and collaboration with famous restaurants & chefs.

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2018 Highlights

1. Fortified logistics infrastructure to enhance its capability and efficiency. Delivery and Pick-up parcels exceeded 220 million units.

2. Introduced OPEN WALLET with OPENPOINT rewards across channels.

3. Expanded OPENPOINT application by diversified collect and redeem programs.

4. Franchise renewal rate hit a record high. Improved franchisee profitability and company profits by optimizing franchise program.

5. Aggressive expansion for Philippine 7-ELEVEN with over 2,500 stores.

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2018 Financial Results

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Financial Highlights

 Historical revenue and profit

Unit: NTD billion

2014 2015 2016 2017 2018 YOY

Revenue (Company Only) Revenue (Consolidated) Net Profit

131.3 133.4 140.1 144.5 154.1 6.6% (Company Only) Revenue 200.4 205.5 215.4 221.1 244.9 10.7% (Consolidated) Net Profit 9.1 8.2 9.8 31.0 10.2 -67.1% One-off gain from - - - - - 20.4 Starbucks deal EPS (NT$) 8.74 7.92 9.46 29.83 9.82 -20.01

Note 1 ： The one-off gain from Starbucks deal includes disposal gain of Shanghai Starbucks, re-measurement gain of Taiwan Starbucks and relative expenses.

Note 2 ： Excluding one-off gain from Shanghai Starbucks deal in 2017, 2018 pre-tax profits grew.

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Store Number Trend

Taiwan 7-ELEVEN

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Note: Outlets in 2018 increased by 443 compared to 2017, which excluded Shanghai Starbucks .

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Sales and Profitability

(Company)

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Sales
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GP NT$ billion
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Note ： 2018 GM% decreased because of tobacco tax.

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NI
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OP

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Note: Figures in 2014, 2016, 2017 and 2018 excluded MUJI disposal gain, BankPro E-service disposal gain, Shanghai Starbucks gain and one-off DTL impact respectively for like-for-like comparison .

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Sales and Profitability

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Sales
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(Consolidated)

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GP
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NT$ billion
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OP
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NI
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Note: The Figure for 2014, 2016, 2017 and 2018 does not include MUJI disposal gain, BankPro E-service disposal gain, Shanghai gain and one-off DTL impact respectively.

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Steady Cash Flow

NT$ billion

Net Cash(Company only)

Net Cash(Consolidated)

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Sustainable Cash Dividend

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NT$
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Note ： 2018 cash dividend has not been approved by AGM.

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Outlook

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Sustainable Growth of PCSC

Long-term goals

Taiwan 7-ELEVEN

Advancing PSD Sales to NTD 100K

Subsidiaries Seizing trends and opportunities

Let each store flourish in its own way; Steady Investment for stable growth

Adjust Structure to align with Growth

Realize synergies; Expand the business

Lifestyle Change ; Environment Challenge New Technology ; Regional Development

People, Store, Product, System, Logistics, Policy, Culture

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Key Milestones

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PSD Sales
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NT$ 100K Lifestyle stores, Differentiated products, Digital platform, Technology E-service, Product mix optimization, and Franchisee program improvements Bigger-store format, TK Marketing Campaign, CITY CAFE, ibon

NT$ 60K

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2008 2012 2018
Reliance Increase
Convenience
Tailor to various
Traffic and
Basic lifestyle Satisfy
ticket size
NEED WANT
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Upscale CITY Brand

 Upgrade coffee beans and equipment to enhance quality. CITY CAFE generated a revenue of over NT$13bn in 2018 with steady growth in coffee, tea and bubble drinks.

 Reinforce brand value and enrich customer experience with high quality and differentiated products.

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Introduced Premium coffee Expanded distribution of

2018 NT$13 bn+ Sales

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Bubble Drinks
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2015 NT$10 bn+ Sales 2007 NT$500 mn Sales

Launched Fresh Tea

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1,000 Stores

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Introduced CITY CAFE 30 Stores

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Provide Quality, Tasty, and Convenient Fresh Food Service

Famous restaurants & chefs Innovation Differentiation

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Advanced Technique Traceability Food Safety

Strengthen between peak times Healthy & Quality Consumption Trend

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Sales contribution up to 20% by 2020 (excluding CITY CAFE)

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Differentiated Product Mix

Sales of differentiated products

Exclusive and unique products from around the world

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YOY10%+
YOY10%+
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2016 2017 2018

Collaboration with SEJ, to introduce premium, famous, and 7-only products

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Constantly roll out four thematic gondolas

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Big-Packed
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Imported
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MUJI
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7 Premium 17

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Lifestyle Store for everyone

• Create PCSC synergy to meet the needs of One-stop shopping.

• Unlock unlimited potentials by cooperating with external resources

2018 PSD-sales

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1.5x
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• Offer a unique 3E experience: Experience, Education, & Entertainment

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Any Lifestyle

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Stores with same size in
Lifestyle stores
similar district
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…

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Lifestyle Store for everyone

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Comprehensive Digital Service

Step 1 Step 2 Step 3 Various payment methods Points integration across Platform expansion and points rewards PCSC with strategic alliances

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E-commerce Physical
F&B F&B Insurance
platform Retail
Integration
Ecommerce
Virtual
Business OP VIP Cosmetic Transportation Medical
Retail care
Mobile
Business Sport & Financial
Transportation Telecom
service
Financing Exercise
Cash Flow: OPEN WALLET
increase visit frequency Strengthen VIP loyalty and Increase Traffic ASP improvement
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Logistics Flow:

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Information Flow :Completed customer consumption and engagement footprint
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Comprehensive Digital Platform

Leverage O2O Integration

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OP VIP Management
OP members Non-cash payment
20%
2.3x
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VIP members to grow by 100% in 2019

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Commission revenue
E-Commerce parcels ibon 、 ibon app transaction
1.1x
1.2x
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Offer new services to Increase traffic

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Go Digital in the Philippines

Aggressive Expansion

Growing Digital service

• Maintain dominant market

shares, and expect to net increase 300+ stores in 2019

Quality Improvement

• Enhance coffee brand image

• Launch E-Commerce gondola in physical stores

• Cooperate with Lazada and Shopee to increase parcels in-store pick up and return service

• Increase e-payment percentages

• Increase fried products offerings

• Optimize franchise system

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Regional Trend and Opportunities

• Utilize PCSC resources

• and transfer Know-how

 Adapt to lifestyle trend and drive sustainable growth for Takkyubin, Books.com, and Taiwan Starbucks

• Strengthen profitability of

• Philippine 7-ELEVEN

• Improve operations of Shanghai and Zhejiang

• 7-ELEVEN by enhancing infrastructure

 Evaluate potential investments in domestic and overseas markets

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Ending Remarks Mr. Jui-Tien Huang

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Q&A

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