Value Creator Behind the Retail Industry

Keysheen

1/20 Keysheen Group

Keysheen Cayman Holdings Co., Ltd.

Investor Presentation

2015/11/26

Agenda

2

Company Introduction

Product and Marketing Strategy

Business Strategy

Financial Information

Shareholder Commitment

Future Prospects

Company Introduction Milestone

3

Company Introduction Group Structure

4

Keysheen(Cayman) Holdings Co., Limited

Yauchung Investment Corp.

Shanghai Keysheen Leisure Products Company Limited

Keysheen Industry(Shanghai) Co., Ltd.

Courtyard Creations Inc.

100%

100% 100%

100%

Company Introduction Manufacturing Location

5

Company Introduction Factory Profile

6

Item Keysheen Leisure

Products Company Keysheen Industry Total

Total Investment(USD Million) 1,140 9,500 10,640

Registered Capital(USD Million) 830 5,600 6,430

Land Area：(m2 ) 104,186 325,546 429,732

Red Pass(m2 ) 104,186 104,186

Blue Pass(m2 ) 325,546 325,546

Factory Area: (m2 ) 100,010 228,373 328,383

Self-contructed(m2 ) 78,355 228,373 306,728

Rent(m2 ) 21,655 0 21,655

Available Building Area(Million m2 ) 23.5

Product and Marketing Strategy Products

7

Urban Specialty Store Mass Merchant

MASS MERCHANT Major market for long-term management Customized products

URBAN Launching onto the market in 2012 Focusing on storage capability

Product and Marketing Strategy Market Segmentation

8

SPECIALTY STORE High-quality products High gross-profit products

Product and Marketing Strategy Marketing Strategy

9

Engagement in new product development with clients

Perfect offshore logistics distribution and after-sales service system

Innovative design and composite material development

Diversified products for customer demand and market segmentation

Customer-oriented sales and pricing strategies

Product and Marketing Strategy Major Customers / North America

10

Product and Marketing Strategy Major Customers / Europe & Other Areas

11

Product and Marketing Strategy Market and Product Sales Mix

12

USA, 80%

EUROPE, 8.9%

AU/NZ, 4.7%

CANADA, 3.8%

AFRICA, 1.5% ASIA, 1.1%

Market Sales Mix

Mass Merchant,

93%

Specialty Store, 4.2%

Urban, 2.8%

Product Sales Mix

2015 H1 2015 H1

Business Strategy

Balanced development of annual production & marketing

Effective inside-outside capacity policies

Professional training for multi-ability-worker Efficient manpower planning

13

Financial Information Five-Year Income Statement

14

NTD Million 2011 2012 2013 2014 2014/Q3 2015/Q3

Sales Revenue 7,240 6,609 5,801 6,426 4,289 3,786

COGS 5,573 5,125 4,657 5,121 3,606 2,782

Gross Profit 1,666 1,484 1,144 1,305 683 1004

Operating expense 933 980 972 1,129 821 767

Operating Profit 733 504 172 176 (138) 237

Income before Tax 856 588 350 (5) (327) 458

Net Income 724 435 231 (19) (239) 307

EPS(NTD) 8.95 4.02 2.14 (0.18) (2.22) 2.88

Gross Margin 23.01% 22.45% 19.72% 20.31% 15.92% 26.52%

Operating Margin 10.12% 7.63% 2.97% 2.74% -3.20% 6.26%

Net Margin 10.00% 6.58% 3.98% -0.30% -5.58% 8.11%

Sales Revenue YoY -5.90% -8.72% -12.23% 10.77% -11.72%

Operating Profit YoY -30.72% -31.24% -65.87% 2.33% 272.31%

Net Profit YoY -16.97% -39.92% -46.90% -108.23% 228.29%

Financial Information Annual Indicators

15

7,240 6,609

5,801 6,426

3,786

2011 2012 2013 2014 2015Q3

23.0% 22.5% 19.7% 20.3%

26.5%

733

504

172 176 237

2011 2012 2013 2014 2015Q3

10.1% 7.6%

3.0% 2.7% 6.3%

724

435

231

-19

307

2011 2012 2013 2014 2015/Q3

8.95 4.02

2.14 -0.18 2.88

Net Profit(NTD Million) Operating Profit(NTD Million) Sales Revenue(NTD Million)

Operating Margin(%) Gross Margin(%) EPS(NTD)

24.4% 23.9%

8.4%

21.8% 22.8% 21.6% 22.7% 22.1%

23.7%

6.6%

2.7%

20.6%

17.7%

9.2%

18.5%

29.1% 28.1%

15.2%

22.24%

Gross Margin

Financial Information Quarterly Indicators

16

4,101

1,227

322

1,591

3,619

1,021

362

1,606

3,085

724

257

1,736

3,081

934

275

2,137

3,221

375 190

555

87 (125)

217 492

11 (111)

112 397

(160) (185) 120 169

(156) (151)

314 540

(155) (147)

11/1Q 11/2Q 11/3Q 11/4Q 12/1Q 12/2Q 12/3Q 12/4Q 13/1Q 13/2Q 13/3Q 13/4Q 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

Sales Revenue(NTD Million) Operating Profit(NTD Million)

Shareholder Commitment

17

Solid financial structure

Increasing capacity 20% in 3 years

High payout ratio policy

Shareholder Commitment Dividend Policy - High Payout Ratio

18

Year Cash Divident

per Share(NTD) Stock Divident per Share(NTD)

Divident per Share(NTD)

EPS(NTD) Payout Ratio(%) Cash Divident

Yeild(%)*

2014 1.5 0 1.5 -0.18 N/A 3.21

2013 1.9 0 1.9 2.14 88.79 3.88

2012 3.5 0 3.5 4.02 87.06 5.54

2011 3 2 5 8.96 33.48 3.63

*Cash divident yield is based on Keysheen’s closing stock price on the day before ex-dividend day

Future Prospects

19

Developing

Global Layout

Promoting the Policy

of Product

Differentiation

Deeping the

Management

of High-end

Market

20

Q&A

Thank You for Your Attention