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China Times Publishing Company

Company History 01 Strategy 05

Bestsellers 03 Financial Update 07

Outline

Industry status 02

Annual Plan 04

Prospect 06

Conclusion 08

The forward-looking statements contained in this presentation including operational prospect, financial position and business expectation are subject to risk, inferences and uncertainties, actual results may differ materiality from those predictive information in these forward-looking statements. The prospects or predictive contents in this presentation are only reflected to the assessments of future to date, but not expressed, implied nor assurance to the accuracy, completeness and reliability of the forward-looking statements. China Times Publishing Company undertakes no obligation to update this information, whether as a result of new information or future events.

Disclaimer

01 • Establishment

• History Introduction

Company History

Corporate Value : Respect for Wisdom and Creativity

Founded in 1975

China Times Publishing Company was founded by YU, JI-

ZHONG ( 余紀忠) the founder of China Times.

During the past 44 years, our publications

span the fields of literary fiction, commercial

fiction, humanities, pop science, business,

lifestyle, self-improvement, trend, fashion, etc..

Establishment

History Introduction

Established Publishing

Department 1975

Established Publishing

Limited Company 1985

Converted to Company Limited

by Shares 1995

IPO 1999

Separated from China Times Group

2008

Was once an important member of China Times Group. (The Group contains newspapers, magazine, television, internet and publishing)

November 2008, the China Times Group was sold to the Want Want Holdings

Limited but not including Publishing Company.

The top selling publishing company in Kingstone, Eslite bookstores and Books.com.tw for many years in a row.

Steady Operation, Well-Profit, Assured Quality and Quantity , Excellent Brand Image

02 Industry status • Publishing vs. Reading

• Current Situation

Publication Volumes VS. Publishing Entities

(National Central Library-2018 Analysis of Current Situation and Trends of Publishing in Taiwan)

Publishing Entities Analysis

2018 Analysis of Current Situation and Trends

4,940 publishing entities in Taiwan. 39,114 new titles per year. 107 new titles a day in average. 2018 vs. 2017 • Decrements of 47 publishing entities • Decrements of 1,287 new titles

☉ 34,919 new titles were published by regular publishers (89.27%). 1,133 titles less than 2017. ☉ 1,009 new titles were published by self-publishing units. 36 titles more than 2017.

Publishers in

Taiwan

Readers in

Taiwan

Consumption

Time Spend On Internet〉 We Are Social & Hootsuite Report in 2018

2018.Jan-Oct Publishing industry, reading habit and consumer survey

2018 vs. 2017-

Over-all frequent reading rate: 67.2%. (↓2.7% ）

Newspaper: 55.7%, Magazine: 37.7%,

Books: 43.7%, Comic books: 21.5%.

Include paper form and digital publications.

• Annually reading quantity was decline from 6.5 books to 4.4 books per person.

Reading • Average personal (12 Y.O+)

consumption was decline from TWD1,113 to TWD686.

20.82 million people in Taiwan (88% of all people in Taiwan), each spent 7hr49m on internet everyday in average.

Publishing Industry Crisis In Taiwan

Immature New

Market

Reading Habit

Info. acquisition

Decline of printed books sales / Limited growth of e-books sales

Young generation has different reading habits

Books have been replaced by smart phones and popular social media (Such as Facebook)

Current Situation

Market Limitation

Taiwan market decline. Traditional Chinese character books markets also decline in Hong-Kong, Macao, Singapore and Malaysia . China Market were opened with restriction.

03 Bestsellers

• Book Awards

• Bestsellers

All-Time Bestsellers

Bestsellers

1. The Da Vinci Code

2. EQ

3. The Alchemist

4. Angels & Demons

5. 1Q84 (1)(2)(3)

6. The Private Life of Chairman Mao

7. Norwegian Wood

8. 目送

9. On Seeing the 100% Perfect Girl One Beautiful April Morning

10. 每天清除癌細胞

Every title has sold more than 200k copies.

2016 2017 2018

Recent Bestsellers Bestsellers

2019.01~09

2003《十年一覺電影夢》《25℃的咖啡之 戀愛幸福》獲優良圖書推薦。

2005《什麼事都在發生》獲獎。

2007《甜心澀女郎》《大崩壞》 《一年甲班34號》獲獎 《宮前町九十番地》《地下鄉愁藍調》入圍

2010《人人身上都是一個時代》獲獎 《我的小革命》入圍

2012《台北爸爸，紐約媽媽》獲獎 《醫23事》《命根子終極解密》入圍

1996《COCO政治漫畫1995-1996》 《喫茶去-茶菜的藝術》 金鼎獎評定優良出版品。

2001《悲傷茱麗葉》 《農莊共和國》獲獎。

2004《熊秉元漫步法律》《御獸園》 《梁山伯與祝英台》獲獎

2006《掉進兔子洞─英倫童書地圖》 《關於上班這件事》獲獎 《憂鬱，為何不就醫? 》《合肥四姊妹》 《憂容童子》《阿咪子故事繪》入圍

2008《絕對小孩》最佳漫畫書獎 《天安門》入圍

2011《一次看懂自然科學》獲獎 《三世人》入圍

2000《珍藏美麗島》《百年思索》 《亞當的秘密》獲獎

2002《郭芝苑-沙漠中盛開的紅薔薇》 獲獎

金鼎獎

2018《袒露的心》文學圖書金鼎獎 《像我這樣一個記者》優良推薦 2019《禮物》優良推薦

Book Awards

GOLDEN COMIC AWARDS

第七屆

特別貢獻獎

朱德庸

第七屆 兒童漫畫獎 第七屆 單元漫畫(入圍)

第七、八屆 青年漫畫(入圍)

第九屆 單元漫畫(入圍)

第九屆 少年漫畫獎(入圍)

第九屆 單元漫畫獎

Book Awards

04 Annual Plans • Operation Plans

• Production Strategies

• Development Plans

1. 從出版出發，邁向文化創意產業，堅持「尊重智慧與創意的文化事業」之經營信念。

2. 營運轉型。調整產品開發模式，強化行銷力與品牌力，並致力於多元產品拓展。

3. 組織精進。落實利潤中心精神與目標管理。強化內部控制制度執行，健全管理體制。

4. 管理落實。持續推動全面工作流程改善，降低成本，提昇效率與品質，提高獲利能力。

5. 服務滿意。增進顧客關係，強化工作品質，達到顧客與員工及股東滿意。

年度營運計劃

營運計畫

1.強化利潤中心制，開放授權，要求責任，提昇公司競爭力及獲利能力。

2. 積極爭取國內外著名作者與作品，尋求出版創新並創造利潤。

3.強化業務能力，開發異業新市場及企業、學校、團體、網路等特殊通路。

4.鞏固大型通路關係，拓展整編地方及小型通路，增進行銷通路之效益。

5.建立B2C客戶服務與行銷體系，以強化顧客關係與滿意程度。

6.加強倉庫管理，增進出貨及退貨之迅速確實。全面檢討庫存管理。

7.改善供應商及印製相關廠商體系，降低成本、增進效能。

8.積極拓展海外與大陸市場。

9.持續加強電子書業務，嘗試建立數位出版平台。

重要產銷政策

產銷政策

1.強化本土原創書籍出版方面

除繼續出版各類質量並重的好書，並加強本土原創書籍的開發， 積極培養

國內優秀作者，並致力於發展作家周邊商品及服務。

2.強化網路數位行銷與營運

增強網站平台，提高流量與成交量，擴大B2C及自媒體與社群開發。

3.擴大品牌影響力，發展策略聯盟

爭取與同業及異業合作，朝同盟合作集團發展。

4.發展文創事業

開發非書商品，研發以出版為核心之衍生服務新事業體系，建構文創事業體制。

未來公司發展策略

發展策略

05 Strategy • Publishing Business Reinforcement

• Diversified Cultural & Creative Content

• Sales Channels Expansion

• Seminars/ Events Coordinate

• Digital Publishing

• Editorial/ Publicity Service

4. Diversified Cultural & Creative Content

Provide more options for consumers by extending and expanding product lines from books.

5.Seminars/ Events Coordinate

Create opportunities for public and reading can meet and get involved.

6. Editorial Service

Provide professional integration service. To meet individual and corporation need in publishing service.

1. Publishing Business Reinforcement

Reinforce The Fundamentals.

2. Sales Channels Expansion

• Main Traditional Channels • Other Channels Expansion • Run Our Own Bookstores

3. Digital Publishing

• Continue to Run Digital Publishing • Book and Non-book Digital Publishing

Development

1

4

3

2

5

6

Strategy

Products

Publishing Business

Reinforcement

Reinforce The Fundamentals

Promotion Sales

Recruit and nurture writers

Seek international bestsellers

Stay close to consumers

Traditional and digital media

In-store displays

Online communities

Reading activities and Seminars

Re-develop physical bookstores

Expand online platforms

Supply to affiliated stores

Replenishment service by salesmen

Book Launch and Events ： Haruki Murakami Books Written 40th Anniversary

Book Launch and Events：TIBE

Book Launch and Events ：Peter Su《陪伴，是世上最奢侈的禮物》

6/30台中 7/06台南 7/07高雄

7/21台北 7/27花蓮 7/28台東

Book Launch and Events ：Mayday-石頭《因為留不住》

Dan Brown 《ORIGIN》 Book Launch and Events

Art Space

China Times specially designed the mobile

storefront to demonstrate the arts

background of the book and entitled “The

Time and Space of Art in Killing

Commendatore ”.

《 Killing Commendatore 》

flash book store was joint built

by China Times and Eslite.

2017.12.15~2018.01.15

Haruki Murakami 《Killing Commendatore》 Book Launch and Events

Top 3 Channels Books.com.tw Eslite (over 40 stores) Kingstone (over 30 stores)

Traditional bookstores (over 60 stores) Affiliated stores (over 30 stores) Independent bookstores (over 10 stores)

China, Hong Kong, Macau, Singapore, Malaysia, United States of America

1

2

3

Main Traditional Channels

Sales Channels

Expansion

Traditional Bookstores

Overseas Market

Books. com.tw

25%

Eslite 17%

Kingstone 7%

Traditional bookstore

20%

Overseas 12%

Others 19%

107前3季 銷貨業績

Books. com.tw

26%

Eslite 18%

Kingstone 6%

Traditional bookstore

17%

Overseas 14%

Others 19%

108前3季 銷貨業績

Other Channels Expansion

Books. com.tw

26%

Eslite

18%

Kingstone 6%

Traditional

bookstores 17%

Overseas 14%

Others 19%

Sales Channels

Expansion

Online Platforms

Online Shopping platforms

Online communities

Fan Pages

APPs, LINE

Special Cannels

Libraries

Schools procurements

Government bids

Others

e-Books

re-authorize

Editorial/ Publicity Service

Own bookstores

/ Independent bookstores

Run Our Own Bookstores

Sales Channels

Expansion

Tree House Bookstore (大樹書房)

Some times Café (時報本舖)

Through Our Own

Stores Enhance Readers

Service

Our Own

bookstore

Selling Books

Reading

Activities

Experiences

Proposed

Interactions

in Community

Sales Channels

Expansion

Authors • Creative Works

Sharing

• Proximity to

Readers

• Peripheral

Production Value

Editors • Nurture the

New Talents

• Meet the Market

Demand

• Product innovation

Readers

• Deeper Understanding

• Wide Range of Reading

• Sharing and Interaction

Some times Café Negative emotional Advertising

Some times Café

Big Sale

在昶輝印刷運轉了40多年的四開印刷機，於2019年9月移到時報出版，持續運轉如同初版到再版，為紙書找記憶、為萬華留故事。

Some times Café Interactions in Community

與萬華在地的咖啡師開發出時報本鋪的獨有咖啡「書的味道」。

與剝皮寮歷史街區 、 台灣觀光地方創生協會、12家萬華咖啡廳合作的集客活動。

Some times Café Interactions in Community

銷貨收入9,304K 13,633K 10,215K 12,672K

2019 1-3Q 2018 2017 2018 1-3Q

Continue to Run Digital Publishing

Digital

Publishing

Y 1-3Q Growth rate added

up to 47%

Growth rate added

up to 24%

• Continue to run digital publishing

• Current Situation

The growth of B2C sales shows the habit of e-books reading is forming.

Books.com.tw selling e-books and printed books simultaneously will help expand the B2C market.

Amazon Kindles Traditional Chinese e-book online.

• Advantage

Have a wide range of titles, categories and well-know authors.

Meet the demands and preferences of foreign and domestic readers.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Jan. Feb. Mar. Apr May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

2016-2019 Sept.

2016 2017 2018 2019TWD

E-books monthly Sales Digital

Publishing

Book and Non-book Digital Publishing Development

Digital

Publishing

• Strategy

Acquire e-book rights of more titles.

Aim for selling e-books and printed books simultaneously.

Target at different audience based on different preferences and needs of foreign and domestic readers.

Direct readers to suitable e-book platforms.

Work with all main channels closely by holding book fairs and lunching sales promotion.

Reinforce cooperation with e-book platforms.

Develop other digital publications.

Joint development with authors

Provide more options for consumers by extending and expanding product lines from books.

请替换文

字内容 Acquire merchandizing

rights

Cultural & Creative Content Products

Diversified

Cultural & Creative

Content

Dorothy

Aida & 綺綺

Develop Cultural & Creative seminars

Seminars/ Events

Coordinate

Seminars (有時聚聚)

In order to stay close to readers and make better progress for both the readers and publishing industry, we’ve been holding seminars to create opportunities for public and reading can meet and get involved.

Live Streaming

We introduce a book through live streaming and try to change the traditional publishing industry to be a content-based industry by supplying richen and more diversified service.

Date： 1st session 2019.07.01~07.05 2nd session 2019.08.05~08.09 Location： China Times Publishing Office Building

Seminars

Seminars

Reading Together Seminar Date：2018.1.20

幸福 經由分享將無法計量

才有極大值的可能

◎新光三越站前店13樓活動會館(100坪) ◎9月2日(五)~9月12日(日)，展期共計11天。 ◎進場佈展8/31~9/1、撤展9/13 ◎開展記者會：9/2 ◎遇見幸福活動：9/3(六)、9/4(日)、9/10(六)、/11(日)

瘋狂自拍區：由暢銷插畫家設計不同的場景，讓觀眾與展覽作品合影。

展區亮點

展覽主題：幸福日常 其實幸福就在日常生活中，與某個人、事、物相遇的當下，心底出現感動快樂，嘴角不自覺往上揚起，心窩彷彿湧入了一股暖流。

以「小確幸」為主題， 呈現日常生活中的暖心、療癒幸福。

邀請作家：敖幼祥、寶總監、 T.H.C. 、鴻…….等。

日期 時間 活動

9/3(六)

14:00-15:00

寶總監╳毛孩交換禮物幸福趴！

16:00-17:00

好想知道！人氣插畫組合p714的十個創作小祕密

9/4( 日)

14:00-15:00

時間市集╳幸福選物（限量插畫家親筆手繪紙手錶活動）

16:00-17:00

海盜動起來，故事姐姐帶你DIY。

9/10(六)

14:00-15:00

蔡詩萍╳寫給另一半的情書

9/11(日)

15:00-17:00

田臨斌╳今年開始，人生都是自己的！

分享幸福-現場活動

Value-added Integration

Service co-publication

Editorial/ Publicity

Service

Long experience in direct sales and marketing

Series of publications have made brilliant achievements

First IPO company in traditional Chinese publishing

Leading brand of traditional Chinese publishing

China Times Integration

Service

06 Prospect • Future Thinking

• Publishing Revival

Publishing Platforms Operating

Educational Business

Cross-Disciplinary Collaborations

Digital Publishing

Publishing-to-

Order

Virtualization

Publishing Alliance

Operational Platform

Activities

Experience

Organized

Vs Miniaturization

Future Thinking

After-Sales Service→Reading club, Life style club

Author Interactions→Seminars, Events coordinate

Authors Agent→Publishing, Product Endorsements, Speaking

Content Provide→Books, Non-book, Knowledge production line

Product Planning→Create with the topic we choose Books, Magazines, Self-media and Audio projects

Distribution system→Book, Product distribution

Sales channels→Independent bookstores, Bookstore Chains, Individual e-commerce websites

Life Style→ Consulting service of Reading and exhibition

Publishing Market Redefine

Future Thinking

Cross- Disciplinary

customer satisfaction

Scale Enlarge

Demassified

Market

Publishing Revival

Publishing

Revival

07 Financial Update • Balance Sheet (IFRS-consolidated)

• Income statement (IFRS-consolidated)

Balance Sheet (IFRS-consolidated) NTD’000

ASSETS 2019.09.30 % 2018.12.31 % 2018.09.30 %

Cash and cash equivalents 32,612 4 43,292 6 29,782 4 Current Financial Assets at Fair Value through Profit or Loss 153,896 21 151,306 20 145,929 20 Notes receivable, net 18,729 2 20,028 3 19,986 3 Accounts receivable, net 111,777 15 136,088 18 110,906 16

Inventories, net 165,092 22 162,903 21 158,028 22 Current Financial assets at amortized cost 4,000 - 4,000 - 4,000 1 Other current assets 10,096 1 10,684 1 10,139 1 CURRENT ASSETS 496,202 65 528,301 69 478,770 67 Investment properties 106,314 14 106,857 14 107,038 15

Right-of-use assets 33,598 4 - - - -

Other intangible assets 79,546 10 76,649 10 75,760 11

Other non-current assets 49,298 7 51,927 7 52,351 7

NON-CURRENT ASSETS 268,756 35 235,433 31 235,149 33

TOTAL ASSETS 764,958 100 763,734 100 713,919 100

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY CURRENT LIABILITIES 297,833 39 315,397 41 279,337 39 NON-CURRENT LIABILITIES 38,502 5 12,035 2 14,119 2

TOTAL LIABILITIES 336,335 44 327,432 43 293,456 41

Common stock 303,758 40 303,758 40 303,758 42 Capital surplus 12,800 2 12,800 1 12,800 2 Legal reserve 77,468 10 74,573 10 74,573 11 Appropriated Retained Earnings 2,318 - 393 - 393 - Retained earnings-unappropriated 39,962 5 47,096 6 30,044 4

Other equity (7,683) (1) (2,318) - (1,105) -

TOTAL STOCKHOLDERS' EQUITY 428,623 56 436,302 57 420,463 59

TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY 764,958 100 763,734 100 713,919 100

2019 1-3Q %

2018 1-3Q % Diff.

Revenue 324,163 100 311,036 100 13,127

Gross Margin 185,367 57 166,666 54 18,701

Operating Expense 138,796 43 144,370 46 (5,574)

marketing Expense 131,316 41 137,275 44 (5,959)

Administration expense 43,177 14 40,527 13 2,650

Operating Income 88,139 27 96,748 31 -8,609

Revenue 7,480 2 7,095 2 385

Net non-operating income 16,846 6 5,342 2 11,504

Net income before tax 24,326 8 12,437 4 11,889

Net income after tax 21,287 7 14,103 5 7,184

0.70 0.46 EPS

Income statement (IFRS-consolidated) NTD’000

08 Conclusion

紙本回温？

Where are the

Readers ?

Readers are still there !

But the tools were changed.

Will publishing industry go

through all kinds of changing

cycle and still survive?!

Hold on to the words and contents, not just typewriters!!

New Publishing Era

Don’t blame readers for not reading books.

Blame us for not presenting the

right books which readers want to read.

Thank You