jing-jan retail business co., ltd. investor conference

Jing-Jan Retail Business Co., Ltd. Investor Conference

2018.March.27

Fashion, Environmental Friendly, Technology X

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Stock Symbol: 2942

Investor Conference Outline

Jing-Jan Retail Profile

Jing-Jan Retail Operating Performance for the Last Five Years

Profitability Comparison of Retail Competitors for the Last Three Years

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The Short - Term Plan of Jing-Jan Retail


Fashion, Environmental Friendly, Technology

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Date of Establishment：2007.Sep

Contributed Capital ： NT$600 million

Major Shareholder ：Radium Group

Jing-Jan Investment holdings has about

75% (As of 2018.03.09)

Number of Employees : 200 Department Store Brand：Qsquare The Total Business Area is About

747,390 sq.ft 480 Brand Counters (As of 2017)

·Top ten shareholdersAs at 9 september 2018

1 Jing-Jan Investment Holdings 75.00%

2 Lin, Rong-Shian 2.61%

3 Hotung International Co., 2.50%

4 CTBC Venture 2.00%

5 CDIB & Partners Investment

Holding Corp.2.00%

6 Mega Bank Co., Ltd. 2.00%

7 KGI Securities Co., Ltd. 2.00%

8 KGI Bank Co., Ltd. Trust Account 1.74%

9 Yuanta Venture Capital 1.67%

10 Yan-Xiang Investment 1.14%

name shareholding ratio


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Qsquare The First Stop after Working

"Cuisine,Fasion,Fun,Entertainment " brand new shopping mall,

Qsquare is a new base for dating parties, about the emerging consumer trends, and new aesthetics of urban life style.

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Qsquare was opened on December 11th, 2009 with a scale of

over 711,800 sq ft. The underground floors connect domestic mass

transit vehicles such as MRT, high-speed rail and Taiwan rail, and

connects the airport MRT to and from Taoyuan International

Airport. As well as access to Taipei Underground Street and

Zhongshan Underground Street, combined with the VIESHOW

CINEMAS, the five-star Hotel Palais de Chine , and the BEING sport

Fitness Center, it is the first station-type compound mall in Taiwan.


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Location - Five Railway Gatherings

Qsquare have convenient transportation - Taiwan Rail, High Speed Rail, Metro, Airport MRT, National Bus Transport

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The main target customers of Q square is 18-35-year-old young

people, office employee, and tourists. It has four consumption

themes about” Cuisine,Fasion,Fun,Entertainment” to attract the

young consumer groups . It is the first mall in Taiwan that combines

cuisine and fashion as the main axis, creating a venue for urban

leisure and feasting. It has become a gathering place for after-work

gatherings and appointments, creating new landmarks at the Taipei

Meet point. !

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Specific Customer

Luxurious Customer

Ordinary Customer

All Round Customer

Regent

Shih Kong

Mitsukoshi A9

Dunhua SOGO

Eslite Ximen

Eslite

Xinyi

Market Positioning

Breeze Center 101

Living Mall

SOGO

Shih Kong

Mitsukoshi

Nanxi & A8

Takashimaya

Mega City

Shih Kong

Mitsukoshi

Taipei Station

Far Eastern

Uni-Ustyle

Miramar

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Target Consumers

First

Target Market

• Taipei Young Consumers Located at the junction of MRT Taipei Station and Taipei’s largest bus transfer center, it targets the young consumer tier of the Taipei

business district.

Second

Target Market

• National Traffic Passengers Located at the intersection of the railway and high-speed rail, with the short commuting time of the Taiwan Railway MRT and the high-speed rail, the sales market has expanded to various regions in the country.

Third

Target Market

• Tourists and Business Travelers in China and other countries Located in Taipei City Center, the largest commercial service center is located at the intersection of the Taiwan High Speed Rail Station and the long-distance passenger Taipei Terminal. It gathers sightseeing and business people, and is close to the airport express stop to attract high-confidence international commuter consumption.

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Qsqusre always has great ideas, surprises and leads the industry. Ever since

its inception, Qsqusre has continued to develop products that have a strong

sense of popularity and continue to be innovative and international, adding

to the beauty of Taiwan's fashion industry.

Qsquare is a business district co-prosperity concept that promotes regional

development from the point of view of operating malls and creates a new

indicator of leisure and entertainment in the West District. It also forms a

new life area around Taipei Station. !


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Shopping Areas

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Profitability Comparison of Retail Competitors

for the Last Three Years

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3 years Actual Operating Income

Comparison

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Jing-JanFAR

EASTERNEslite Taipei 101 Metrowalk Global Mall

2015 4.5% 1.5% 2.4% 2.6% 11.1% 6.5%

2016 0.3% 1.7% -7.1% 0.8% -9.3% 6.8%

2017 1.4% -5.3% 0.4% -2.7% 1.4% -15.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

2015~2017 Operating income average growth rate

source：Market Observation Post System

Department Store Company EPS Comparison

2015~2016 EPS comparison

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Jing-JanFAR

EASTERNEslitte Taipei 101 Metrowalk

GlobalMall

2015 2.92 1.2 8.69 1.39 0.82 1.16

2016 3.8 0.81 8.88 1.45 0.58 1.49

0

1

2

3

4

5

6

7

8

9

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source：Market Observation Post System

Jing-Jan Retail Operating Performance for the Last Five Years

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2013~2017Actual results (Net method; Unit: thousand yuan)

1,165,165 1,284,000

1,342,439 1,347,828 1,367,312

82,480 170,504 175,273 228,118 270,475 1.37

2.84 2.92

3.80

4.51

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2013 2014 2015 2016 2017

Operating revenue Net Income EPS18

Note ；EPS unit： yuan

project 2013 2014 2015 2016 2017

Operating Revenue 1,165,165 1,284,000 1,342,439 1,347,828 1,367,312

Net Income 82,480 170,504 175,273 228,118 270,475

EPS 1.37 2.84 2.92 3.80 4.51


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56.4Billion 61.0Billion

63.3Billion 62.9Billion 61.0Billion

18.8%

19.1% 19.1% 19.2%

19.8%

18.5%

18.7%

18.9%

19.1%

19.3%

19.5%

19.7%

19.9%

20.1%

20.3%

20.5%

20.7%

20.9%

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Operating revernue Gross margin

2013 2014 2015 2016 2017

Unit : thousand yuan

2013~2017 Actual results(Total method)

Dividend Payment

Dividend Payment

2014 2015 2016 2017

EPS 2.84 2.92 3.80 4.51

Cash dividend 2.49 2.62 3.42 2.50

Coupon ratio 99% 99% 99% 62%

Unit :NT Dollars

Note1: The calculation of the dividend distribution ratio is based on the company's

current net profit after tax deducting the statutory surplus reserve and related

adjustments.

Note2:The subsequent dividend distribution ratio of the Company, based on the

extension point and related operational considerations, proposes to allocate not

less than 60% of the distributable surplus as shareholder dividends.

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Qsquare Member

107,152

231,319 292,857

364,009

460,866

547,591 615,213

662,554 710,850 718,040

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Qcard members As of February 28,2018

Visitors Flow FB Fan Page 2017 Daily Average

annual 83,479

Weekdays 70,875

weekend 111,243

128,863 people (As of March 16,2018)

The Short-Term Plan of Jing-Jan Retail

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MRT Zhongshan Station - Heart Center


Xinzhuang Line MRT JD

Guiyang, China

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MRT Zhongshan Station - Heart Center


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In the autumn of 2017, Qsquare successfully obtained the right to operate the shops and the Jazz Plaza on the B1 floor of the MRT Headquarters of the MRT station in Zhongshan. The district is mainly based on catering, and the business positioning of “Entertainment, Fun” is used to plan the brand's presence and related events. In line with the overall image of the Zhongshan Belt Park, it creates an imagery atmosphere that Europe Square. The opening of the first store is scheduled to start in April with the launch of the “Jazz Plaza”, a complex arts and cultural event space in the heart of Zhongshan. The whole area is expected to be fully opened before the third quarter of 2018.


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Connected with the Xinzhuang Line MRT JD, combined with commercial office, residential, MRT, sightseeing and other full-featured City shopping malls. From the first floor to the fourth floor has many well-known Household brands stationed, At the 5F Qsquare will create a complex shopping mall based on resturant business. It is currently expected to open in 2019.


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Guiyang, China

Guiyang, China

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To discuss cooperation with Guiyang local companies to evaluate comprehensive shopping mall center. Analyze and evaluate the local consumer population, habits, and consumer markets. Using the years of department store business experience of Qsqure, it will propose proposals for the scaleof the shopping mall, and assist in the planning and evaluation of shopping malls that best businee way to the local consumer market.

THANK YOU

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jing-jan retail business co., ltd. investor conference

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