TAINAN — Investor Presentation 2021

Sep 24, 2021

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2021 Investor Conference

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Safe Harbor Notice

• The content and related information in this briefing report and the synchronous announcement are sourced from Tainan enterprises inner and outer material, including the operation result, financial situation and the business development, et cetera.

• No financial forecasting is released by Tainan enterprises . Discrepancy may be existed between the actual result in the future and the estimated opinion to the company operation and business developing subjects indicated in this briefing report with respect to the financial, business and Q&A part. The causes of the discrepancy may include the variation of market needs, price fluctuation, competition activities, international economic situation, exchange rate fluctuation, upper and downer stream supply chain, and any other risk factors that beyond Tainan enterprises control.

• The prospects to the future in this briefing report reflect Tainan enterprises vision of future. Tainan enterprises is not responsible for any notification or update with regard to any change or adjustment to these prospects in the future.

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Company 時 Profile SHI WORLD CLASS APPAREL MANUFACTURER

尚 SHANG

T A I N A N E N T E R P R I S E S C O . , L T D 台南企業股份有限公司

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Headquartered in Taiwan for over half century, Tainan Enterprises Co, a premier garment manufacturer, has helped power the growth of leading retailers such as Gap, Ann Taylor, Macy’s, and GU etc.

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HALF CENTURY OF EXCELLENCE AT A GLANCE

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1993-2010
1987
1961
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2016-Now
2011-2015
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Founded Son of Mr. 1993-Launched private label man’s in Tainan, Yang, Kun-Mou, wear “Tony Wear” and started direct Taiwan, by Mr. Yang, Chingretail in China. Mr. Yang, Hon was Kun-Mou. appointed the 1993-Launched first Indonesia facility 1993-Launched first Indonesia facility -Launched first Indonesia facility president. PT. TAINAN ENTERPRISES

1993-Launched first Indonesia facility 1993-Launched first Indonesia facility -Launched first Indonesia facility PT. TAINAN ENTERPRISES 1994-Launched Yi Xing China facility, GAO QING GARMENTS CO. LTD.

• 1998-Launched first Cambodia facility

• 2000-Listed on Taiwan Stock Exchange (TWSE) main board

2011-Tainan Enterprise (Cayman) Co., Ltd listed on Taiwan Stock Exchange (TWSE)

2013-Launched 2nd Indonesia facility ANDALAN MANDIRI PT. in Solo.

2014-Launched 2nd Cambodia facility JEI JOM ENTERPRISE CO., Ltd in Phnom Penh

• 2015-Acquired majority of knitwear manufacturer G-SPEC INTERNATIONAL CO., LTD and its 2 facilities, in Vietnam and Cambodia He-Nan facility ceased production

2016-Vietnam factory construction started

2017-Launched Vietnam facility TAINAN ENTERPRISES VIETNAM CO., Ltd.Got the LEED Gold certification

2018-First time Handover family business into a professional run management.

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CUSTOMER PROFILE By Product Category

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KNIT
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WOVEN KNIT
Others, 5% Dress, 3%
Dress, 8% Others, 2%
Outerwear,
7%
Outerwear,
10%
Bottom,
Bottom,
45%
55%
Top, 25%
Top, 40%
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CUSTOMER PROFILE By Classification

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WOVEN
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KNIT
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Kids, 10%
Kids, 2%
Men's, 8%
Men's, 25%
Women,
Women, 90%
65%
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CUSTOMER PROFILE Top Customers

WOVEN

KNIT

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OTHERS, 3% JCPENNEY, NORTHERN OTHER, 3% NORTHERN MGF, 2% REITMANS,
3% Li & Fung, , 2% 1%
Eralda, 5% , 1%
3%
GORE, 5%
CDC, 6% GAP
ANN
(Old Navy), 22% TAYLOR,
CODDY, 9%
MACY'S,
35%
6%
ANN
REITMANS,
TAYLOR, MACY'S,
7%
20% 20% NEWTIMES,
GU, 12%
20%
MGF, 15%
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CUSTOMER PROFILE Global Market Share

WOVEN

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KNIT
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EUROPE, 5% ASIA, 2%
EUROPE,
ASIA, 25%
30%
AMERICA, AMERICA,
70% 68%
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REGIONAL ADVANTAGE

We operate 8 facilities located in 5 countries; ship 35M units annually to clients in US, Canada, Europe, Japan, China, Asia and South America; and serve with cost efficiency, duty benefit and sourcing advantage. Taiwan China Cambodia Vietnam Indonesia

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Cnina
Cambodia
TC1
Taiwan
Cambodia
TC3
Vietnam
Cambodia
GS
Indonesia
Indonesia
SOLO
JKT
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P R O F I L E ~~F A C T~~ O R Y

OUTPUT PROJECTION

	Facility
	Location	Taiwan	China	Indonesia	Cambodia		Vietnam
					(TC1+TC3)	(GIN SOVANN)
	Production	2 LINES	10 LINES	80 LINES	57 LINES	15 LINES	20 LINES
	Line
	Monthly Capacity	20,000 pcs	200,000 pcs	1,000,000 pcs	850,000 pcs	300,000 pcs	300,000 pcs
	Strength	Active wear, Small Size Order, Advance Techniques Including Welding, R&D Sample Room	Novelty items, Complicated Craftsmanship, Embellishment Sourcing, Fast Turn Around	Soft Blouse, Refined and Tailored Garments, Athleisure Apparel, Denim, Laundry Facility	Denim, Laundry Facility, Cut-And-Sew Knits, Woven Top, Outerwear, Active Wear & Athleisure Apparel	Cut-And-Sew Knits, Sleepwear, Loungewear Performance active wear & Athleisure Apparel	Sustainable Product, Woven/Denim Bottoms, Woven Top, Cut-And-Sew Knit & Athleisure Apparel
	Total	WOVEN: 25,632,000 pcs/ year KNIT: 6,408,000 pcs / year

ACHIEVEMENT

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• CommomWealth Magazine's CSR Award - Mediumsized

• Execution of Excellence of HERproject

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• 4th National Environmental Education Award

• Global Views Monthly CSR Award

2012 2014 2015 2016 2017

2019 2020

• 1st Taiwan Circular - Protective Economy Awards - Clothing National Cross-industry Team Award

• MGF Long Term Partnership Award

• MGF Anti-Human Trafficking Award

• Ann Inc. - Macy’s Top Vendor Award Five Star Award

• Macy’s Five Star Award

• Macy’s Five Star Award, Global Citizenship

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Consolidated Financial Results (I)

Year	Revenue		Gross Profit	Operating Income	Pre-Tax Income	Net Income	EPS
	Amount (NT$mn)	YOY (%)	(NT$mn)	(NT$mn)	(NT$mn)	(NT$mn)	(NT$)
2016	9,333	(2.42)	1,525	293	260	224	1.54
2017	8,329	(10.76)	1,047	15	90	94	0.64
2018	8,326	(0.03)	1,068	5	110	80	0.54
2019	7,660	(8.00)	1,065	74	66	80	0.55
2020	5,970	(22.00)	670	(327)	(380)	(355)	(2.45)

Consolidated Financial Results (II)

	Profitability					Financial Leverage
Year	Gross Margin	Operating Margin	Net Margin	ROE	ROA	Net Debt/Equity	Current Asset/
	(%)	(%)	(%)	(%)	(%)	(%)	Current Liab. (%)
2016	16.35	3.14	2.40	5.59	3.43	淨現金	226
2017	12.57	0.18	1.12	2.39	1.81	淨現金	244
2018	12.82	0.06	0.95	2.06	1.88	淨現金	166
2019	13.91	0.97	1.05	2.09	1.91	淨現金	175
2020	11.23	(5.49)	(6.37)	(10.1)	(6.24)	淨現金	192

Dividend Policy

• According to the corporate law & the company’s regulation

• Depend on the company’s short & long term operation plan and profitability

• Depend on the company’s cash position

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EPS Cash dividend Stock dividend Payout ratio
Year
(NT$) (NT$/share) (NT$/share) (%)
2016 1.54 1.2 0.0 77.92
2017 0.64 0.5 0.0 78.13
2018 0.54 0.5 0.0 92.59
2019 0.55 0.5 0.0 90.91
2020 (2.45) 0.2 0.0 -
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Automation & Sustainability

Hanger System in Solo, Indonesia Auto Pattern Machines in Factory LEED Certified in Vietnam

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100% Wastewater Recycle - Effluent Treatment

Discharged Wastewater

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Biological Treatment
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100% Wastewater Recycle

Ozone Reverse Final Bleaching Osmosis Recycled Water

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Chemical Treatment
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Biological Sedimentation Tank
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CLO 3D

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REAL-TIME INTERACTIVITY

Instantly review changes as any modifications to 2D patterns, colors, textures and finishing details are immediately simulated.

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3D 2D
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CLO 3D

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S 3 M D

A R G T A E R R M

CLO-SET

Through this function, you can try on the body and size on website. Wear the selected clothing and check if it fits, and also communicate with TAINAN by using comment section.

Comment section

Upload & download

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AUTOMATIC FABRIC ANALYSIS CLO 3D

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We can accurately emulate drape-sensitive fabrics such as lightweight wovens and jerseys with various material properties.

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VIRTUAL TO ACTUAL CLO 3D

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TECH PACK

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3D SAMPLE

ACTUAL SAMPLE

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VIRTUAL TO ACTUAL CLO 3D

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3D SAMPLE

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ACTUAL SAMPLE 3D SAMPLE

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ACTUAL SAMPLE

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3D Show Room

Product Presentation - Simple, Fast & Contact-Free

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With 3D Show Room, we can create a virtual space where welcome the customers in complete safety and offering at the same time the opportunity to interact with all the production without the constraints of the physical environment.

3D Show Room

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3D Show Room

Samples

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Fabrics Catwalk

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PPE for the health workforce during COVID-19

Multi-Point Production—Taiwan/Cambodia

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Passed P2 Level

 Moisture Permeability ≧ 1500 g/ ㎡ . 24h

 Hydrostatic Pressure ≧ 50cmH ₂ O

 Sub-micron Particle Filtration Efficiency ≧ 70%

President Tsai visited Tainan Enterprises to thank the contribution of COVID-19 prevention of production of "one million PPEs".

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RECENT SHIPMENT PRODUCT HIGHLIGHT

DESIGN DIRECTOR

• MEN’S

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• DENIM

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+ BOTTOM

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+ BOTTOM

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+ BOTTOM

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+ T
O
P
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+ JACKET/COAT

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• DRESS

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+ KIDS
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+ ACTIVE WEAR

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+ ACTIVE & PROTECTIVE WEAR

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2 0 2 1

THANKS

C h i n a

C a m b o d i a

I n d o n e s i a V i e t n a m

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T a i w a n