RH — Investor Presentation 2021

Dec 15, 2021

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Investor Conference Dec 16, 2021

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Listed Date 2017.06.26

PHACHARAPON Chairman PHAIBOONSUNTORN Shares 38,386,000 Paid in Capital NTD 384 million Group Staffs 3,200+ Headquarter Thailand Production Base

• 65,896 square meters

• 3 jewelry factories

• 1 jewelry plating factory entity

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Industry Status

Upstream

• Raw metal mining

• and production

• Stone rough material mining and production

Midstream - 1

• Gemstones/artificial

• stones cutting and

• polishing

• Gemstones/artificial

• stones wholesale

• Jewelry Design and Brand operators

• Manufacturers of jewelry process equipment and material supply

Midstream - 2

• Jewelry manufacturing plant

• Jewelry plating plant

• Jewelry accessories supplier

Downstream

• Jewelry brand shops

• Department stores/malls

• Discount stores

• Non- physical shops （ Catalogue and B2C e-commerce ）

• Network Community channels

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Special Certification

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Main Products Harmonized System Codes (HS Code)

7117 Imitation jewellery

• 711711 Jewellery: imitation, cuff links and studs, of base metal, whether or not plated with precious metal

• 711719 Jewellery: imitation, (excluding cuff links and studs), of base metal, whether or not plated with precious metal

• 711790 Jewellery: imitation, of other than base metal, whether or not plated with precious metal

7113 Jewellery articles and parts thereof, of precious metal or of metal clad with precious metal

• 711311 Jewellery: of silver, whether or not plated or clad with other precious metal, and parts thereof

• 711319 Jewellery: of precious metal (excluding silver) whether or not plated or clad with precious metal,

• and parts thereof

• 711320 Jewellery: of base metal clad with precious metal, and parts thereof

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7117 & 7113 Reporting Countries Export Statistics

Thailand is the world‘s top ten 7117 & 7113 exporters

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Source: IHS Markit

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Thailand Major Export Country (2018-2021) #7117 Imitation Jewelry

	Thailand Major Export Country (2018-2021) #7117 Imitation Jewelry Unit：USD million	Thailand Major Export Country (2018-2021) #7117 Imitation Jewelry Unit：USD million	Singapore, 13, 9% USA, 46.22, 32% HongKong, 30.76, 21% Switzerland, 15.4, 10% Germany, 5.73, 4% China, 5.26, 4% Australia, 4.25, 3% Italy, 1.2, 1% India, 0.18, 0% Belgium, 0.55, 0% Liechtenstein, 23.6, 16% 2021 Jan - Oct
Country	Quarter 4	Total
	2018 2019 2020 **2021(10) **	2018 2019 2020 2021(1-10)
Singapore	21.45 17.32 4.3 1.31	73.7 76.33 24.54 13
USA	11.63 11.43 10.9 5.44	44.36 39.18 32.81 46.22
HongKong	5.36 6.16 7.87 4.43	17.61 22.48 24.67 30.76
Switzerland	2.32 3.44 5.18 1.12	7.95 13.85 17.61 15.4
Germany	3.48 2.68 2.09 1.04	16.25 9.79 7.54 5.73
China	0.16 1.04 1.4 0.94	4.38 5.35 4.84 5.26
Australia	0.63 0.77 1.02 0.29	3.05 3.00 3.02 4.25
Italy	2.05 0.55 0.5 0.19	5.9 2.71 2.11 1.2
India	0.1 0.28 0.05 0.03	1.1 1.38 0.21 0.18
Belgium	0.2 0.23 0.12 0.09	0.93 1.08 0.56 0.55
Liechtenstein	44.32 40.42 9.11 1.92	165.05 157.29 56.17 23.6
Source: Gem and Jewelry Information Center

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Thailand Major Export Country (2018-2021)

7113 Jewellery articles and parts thereof, of precious metal or of metal clad with precious metal

	Thailand Major Export Country (2018-2021) #7113 Articles Of Jewelry And Parts Thereof, Of Precious Metal Or Of Metal Clad With Precious Metal Unit：USD million	Thailand Major Export Country (2018-2021) #7113 Articles Of Jewelry And Parts Thereof, Of Precious Metal Or Of Metal Clad With Precious Metal Unit：USD million		2021 Jan - Oct USA, 1036.69, 53% HongKong, 157.08, 8% Italy, 49.49, 3% Germany, 389.47, 20% China, 79.80, 4% Australia, 130.35, 7% India, 17.48, 1% Singapore, 62.67, 3% Cambodia, 0.06, 0% Switzerland, 21.80, 1% Belgium, 6.08, 0%
Country	Quarter 4	Total
	2018 2019 2020 2021(10)	2018 2019 2020 2021(1-10)
USA	253.69 271.82 260.1 133.2	1000.81 904.10 771.40 1036.69
HongKong	55.48 68.36 59.86 14.92	618.15 541.13 190.03 157.08
Italy	13.71 12.98 13.94 7.77	78.8 191.74 81.17 49.49
Germany	179.91 194.62 130.7 59.83	596.68 506.88 480.34 389.47
China	65.71 55.54 20.86 5.57	212.45 179.20 126.80 79.80
Australia	61.03 50.44 63.47 22.11	176.4 132.34 143.05 130.35
India	2.47 20.2 4.18 6.95	41.35 70.92 16.90 17.48
Singapore	12.39 13.29 22.37 7.97	43.99 45.90 56.67 62.67
Cambodia	0.46 12.62 0 0	4.02 22.45 4.54 0.06
Switzerland	10.04 10.59 5.65 4.03	109.35 91.64 26.30 21.80
Belgium	1.89 1.83 2.39 0.61	6.09 6.05 5.40 6.08
Total	656.78 712.29 583.52 262.96	2888.09 2692.35 1902.60 1950.97
Source: Gem and JewelryInformation Center

2021 Jan - Oct

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Cambodia,
0.06, 0%
Singapore, Switzerland,
62.67, 3% 21.80, 1%
India, 17.48, 1%
Belgium,
Australia, 6.08, 0%
130.35, 7%
China, 79.80, 4%
Germany,
389.47, 20% USA, 1036.69,
53%
Italy, 49.49, 3%
HongKong,
157.08, 8%
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Thailand Major Export Country (2019-2021)

Thailand Export Value(QoQ)#7113

Unit ： USD million

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1200
1000
800
600
400
200
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2020 2021
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July to December of 2021 Operation Report

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Distribution of Regal Group Customers

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Europe 16%
America 23%
Global 58%
Type percentage
Omni-channel 80%
Online channel 18%
Offline channel 2%
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Regal Group 2021/01-11 Operating Overview

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Gross margin : 23% Accumulated Revenue from 2021/01-11 is NTD 1,958 million (YoY+17.27%) N/I rate : 6% EPS:2.21 www.regaljewelrygroup.com

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2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021

※ 2021 Q4 figure only include the revenue of Oct & Nov.

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2022 Management Policy & Outlook

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2022-2025 personal luxury goods market trend

Bain & Company: The rebound of global luxury goods sales in 2021 can be regarded as a strong predictor of the healthy growth of the market in mid-term.

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Source: Bain & Company & Altagamma, 2021/11/11

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2022-2025 personal luxury goods market trend

Americas sales value		Online and brand channels are the key to		The new generation of
solid rebound, and		the recovery in 2021, which will lead the		consumers under the age
China is the fastest-		mid-term growth of the fashion industry.		of 40 (Generation Y and
growing and the most				Generation Z) has become
important markets in				the main consumer group
the future.				of the fashion industry.

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Source: Bain & Company & Altagamma, 2021/11/11

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Management policy 1: - Continuous encouragements of epidemic precautions. Employees' health and safety are always our first priority.

Source :World Health Organization (WHO)

Factory Current Situation ：

1. Joined "Sandbox Project" to reduce the risk of manpower loss.

2. First dose vaccine rate: 97.35%.

3. Second dose vaccine rate: 87.25%.

4. Thailand has launched its third vaccination dose campaign. Third dose of vaccinated ： 57 person.

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Management policy 2: Balancing between valued customers’ orders and factory manpower.

Reengineering: Three Forces

Market Expansion: Three Arrows

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Increase • Growth of gross margin. Profitability • Defeat competitors and seize the share of winners. and Market • Leading competitors and expanding the ESG market. Share

Leverage Strengths Leverage Outsourcing

Balance Peak & Low Seasons Growth Mindset

Expand Customer •M-shaped customers development. Base and •Omni-channel jeweler in Europe and US. Product •Gold jewelry, Fashion jewelry, IP jewelry & Non traditional jewelry. Lines

Planning Power Speed Competitiveness Flexibility Quality, Delivery, Welcome Changes Cost

Strengthen •Large factory (mass production) → Medium factory (mixed product the line) Foundations •Upgraded computer software and hardware to improve the efficiency of Our of information security protection and departmental management. Business •Production & HR re-allocation and Employee growth training plan.

Strengthen

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Management policy 3: The Stage of Designer

• Inspiring and encouraging people or corporations to create mix-match business opportunities.

 Through “D.Vita” and “ ReModa ” two platforms. aid to incubate designers from their inspiration till products roll out to markets.

2022 Plan ：

Q1: 1st D.Vita selects designer products to crowdfund through pre-orders.

• 2nd D.Vita selected designer training and 1 on 1 customized designer recruitment.

• Q2: 2nd D.Vita selected designer evaluation and

• 1 on 1 customized designer incubation.

2020 ：

June 18th : Establishment of the D.Vita project and ReModa’s platform.

Oct: Co-develop IP products with Hua Xing Entertainment. Built and developed teams for designer competition project.

Nov: Co-designed jewelry pieces with a Taiwanese celebrity for Jin Ma Award candidate.

Dec: Sponsored the “Xiao Len Tao Gei” festival event organized by The Eslite Spectrum Corporation.

2021 ：

Jan: Train designers of 1st D.Vita on jewelry production process.

Mar: Custom 1 on 1 lessons for 1st D.Vita designers.

Apr: Pitch Demo event of 1st D.Vita.

Jul: Incubating selected designers of 1st D.Vita. Aug: Sample 3D printing for 1st D.Vita designers. Oct: 2nd D.Vita competition selection of designers. Nov: 2nd D.Vita selected designer recruitment. Dec: 2nd D.Vita recruited designer selection.

• Cooperation for class with Fu Jen Catholic University.

• Q3: 2nd D.Vita selects designer products to crowdfund through pre-orders.

3rd D.vita selected designer recruitment.

Selecting 1 on 1 customized designer products to crowdfund through pre-orders.

• Q4: Shining star awards for 1st and 2nd D.Vita selected designers.

Incubation presentation of 1 on 1 customized designer.

Coached candidates of the D. Vita designer project and developed products from their sketches.

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Management policy 4:

Brand Channel Expansion

 E-Commerce ：

-Commerce：
https://www.momoshop.com.tw/search/searchShop.jsp?keyword=remoda&se archType=1&curPage=1&_isFuzzy=0&showType=chessboardType	https://shopee.co.th/aevari_officialshop https://shopee.co.th/jewelrybuffet.official
https://shopee.tw/remoda_select	https://en.pinkoi.com/store/aevari?ref_itemlist=v6XeKhYd https://en.pinkoi.com/store/jewelrybuffet?ref_itemlist=Fxsn5HPL
https://www.republicdemoda.com	https://www.lazada.co.th/shop/aevari- https://www.lazada.co.th/shop/jewelry-buffet

 Retail Stores ： Song Jiang main store sales event & pop-up shops etc.

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Regal Group’s strategy & expectation

• The ultimate in craftsmanship

• The core green supplier of brand customers

• The partner who accompanies with customer's growth

• The incubator of potential brands

• The leader of the Total service solution

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Today, Jewelry is not just Jewelry. The Industry is Changing, same as Fashion & Luxury Industry. Regal is transforming into + Jewelry Stage

Technique . Craftsmanship . Design . Innovation

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Thank You TW.4807

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w w w. r e g a l j e w e l r y g r o u p . c o m

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