104 Corporation (TSE:3130)

A Total Solution Provider in the Chinese HR Services Market

October 2019

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Safe Harbor Statement

This presentation contains some forward-looking statements that are subject to substantialrisks and uncertainties. Typically, these statements contain words such as “anticipate,"“believe,” “could,” “estimate,” “expect,” “intend,” “plan,” ‘’forecast,” “project,” “predict,”“potential,” “continue,” “may,” “should,” “will” and “would” or similar words. You shouldconsider these forward-looking statements carefully because such statements are only ourexpectations or projections about future events; and actual results may differ materially fromthose expressed or implied by such statements.

You should be cautioned that the forward-looking statements are not the guarantees of ourfuture performance. The forward-looking statements contained in this presentation are madeonly as of the date of this presentation and we undertake no obligation to update theforward-looking statements to reflect subsequent events or circumstances, except as requiredby law.

This presentation and the information contained herein is the property of 104 Corporation.

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Agenda

• Company Profile

• Services and Products

• Financial Review and Dividend Policy

• 104 Value Map

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In 1996, 104 was established

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“For jobseekers, we don’t just help find jobs—we forge careers; and for employers, we don’t just help find workers—we manage talent.”

by Rocky Yang, founder and chairman of 104

Company Profile

Market Position

104 Job Bank was established: 1996.

First job bank to IPO in Taiwan: 2006.

First job bank in Taiwan to get ISO 27001, BS 10012 and ISO 29100 accreditation.

Core Competence Financial Strengths

Strong database: 8.19 million resumes, 75% college graduated/ above, 356K corp. customers.(Jun. 2019)

Comprehensive range of HR related services.

Competitive candidate matching and job recommendation system.

Zero debt.

Solid NT$ 2.21 billion cash position.(June 2019)

Proven capability to generate cash even in difficult economic periods.

High satisfaction & recognition of 104 brand & services.

Source: Company data 5

ISO/IEC 27001 (Information Security Management System)

BS 10012(Personal Information Management System)

ISO/IEC 29100 (Privacy Framework)

Core Services and Products

6Source: Company data

HR AcademyHR Mgmt. Solutions

& Consultancy

104 HunterExecutive Search

Services

104 AdsHR Advertisement

Services

104 CaseCase Outsourcing Posting Services

104 LearnTraining ProgramPosting Services

104 TutorTuition Posting

Services

104 Job BankJob Posting

Services

Job-Search App

Talent-Search App

Mobile AppsBusiness Segments

For Job Seekers• Vast, easy, & accessible platform• Career map & value added services

For Corporate Users• Large and diversified resume pool• Variety of integrated HR services

Revenue Performance

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Consolidated Revenue (Unit: NT$’000)

Time

Amount

Monthly RevenueYoY

Accumulated RevenueYoY

Aug. 2019 Aug. 2018 2019 2018

Total 145,790 145,563 0.16% 1,100,721 1,070,261 2.85%

Source: Company data

(Unit: NT$/M)

Quarterly Revenue

344376 383

351361395 401 384367

415 414381377

431

100

200

300

400

500

Q1 Q2 Q3 Q4

2016 2017 2018 2019

Q2 2019 Income Statement

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Q2 2019 % Q2 2018 % YoY

Operating Revenue 430,521 100% 414,945 100% 3. 75%

Operating Costs 41,752 10% 41,256 10% 1.20%

Gross Profit 388,769 90% 373,689 90% 4.04%

Operating Expenses 290,737 67% 279,474 67% 4.03%

Selling Expenses 165,092 38% 156,466 37% 5.51%

Administrative Expenses 41,343 10% 44,073 11% (6.19%)

Research & Development Expenses 84,302 19% 78,935 19% 6.80%

Operating Income 98,032 23% 94,215 23% 4.05%

Non-Operating Income and Expenses 4,160 1% 8,023 2% (48.15%)

Income Before Income Tax 102,192 24% 102,238 25% (0.04%)

Income Tax Expenses 20,060 5% 20,229 5% (0.84%)

Net Income 82,132 19% 82,009 20% 0.15%

Basic EPS 2.45 2.47

Source: Company data

(Unit: NT$’000, except for EPS)

H1 2019 Income Statement

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H1 2019 % H1 2018 % YoY

Operating Revenue 807,963 100% 782,063 100% 3.31%

Operating Costs 81,998 10% 79,056 10% 3.72%

Gross Profit 725,965 90% 703,007 90% 3.27%

Operating Expenses 565,443 70% 536,654 69% 5.36%

Selling Expenses 318,206 39% 298,136 38% 6.73%

Administrative Expenses 80,247 10% 83,234 12% (3.59%)

Research & Development Expenses 166,990 21% 155,284 20% 7.54%

Operating Income 160,552 20% 166,353 21% (3.49%)

Non-Operating Income and Expenses 6,023 1% 13,177 2% (54.29%)

Income Before Income Tax 166,545 21% 179,530 23% (7.23%)

Income Tax Expenses 26,860 4% 34,454 4% (22.04%)

Net Income 139,685 17% 145,076 19% (3.72%)

Basic EPS 4.21 4.37

Source: Company data

(Unit: NT$’000, except for EPS)

H1 2019 Balance Sheets

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2019.06.30 % 2018.06.30 %

Cash & Cash Equivalents 2,212,903 83% 2,206,523 87%

NR & AR, Net 60,516 2% 57,807 2%

Other Receivables 11,987 1% 11,427 -

Total Current Assets 2,301,990 87% 2,290,125 90%

Property, Plant and Equipment 229,412 8% 212,767 9%

Right of use Assets 96,998 4% - -

Total Assets 2,660,965 100% 2,531,956 100%

NP, AP and Other Payables 592,430 22% 605,351 24%

Contract Liability 497,905 19% 446,339 18%

Lease Liability – Current (1) 32,042 1% - -

Total Current Liabilities 1,232,009 46% 1,161,026 46%

Lease Liability-Non-current 65,337 3%

Total Liabilities 1,302,232 49% 1,167,578 46%

Total Equity 1,358,733 51% 1,364,378 54%

(Unit: NT$’000)

Source: Company data

H1 2019 Cash Flow Statements

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H1 2019 H1 2018

Net Cash Flows from Operating Activities 191,999 179,203

Income Before Tax 166,545 179,530

Depreciation and Amortization Expenses 40,757 23,019

Other Operating Uses (15,303) (23,346)

Net Cash Flows from (Used in) Investing Activities (34,709) (16,483)

Acquisition/Disposal of Property, Plant and Equipment (44,763) (13,196)

Acquisition of Intangible Assets (370) (2,796)

Decrease in Other Receivables (1) 11,372 -

Other Investing Sources (948) (491)

Net Cash Flows Used in Financing Activities (17,608) -

Payments of Lease Liabilities (2) (17,608)

Net increase (decrease) in cash and cash equivalents 140,234 163,053

(Unit: NT$’000)

Note: (1) Retrieving $ 11M Investment proceeds from subsidiary 104 learn Corp. dissolution.

(2) The increased payments of lease liabilities were due to adoption of IFRS16 in 2019.

Source: Company data

Dividend Policy

12Source: TWSE & Company data

FY 2010 2011 2012 2013 2014 2015 2016 2017 2018

EPS 7.72 6.71 5.67 7.46 9.41 9.99 12.04 9.60 8.51

Cash DividendPer Share

6.0 6.0 4.55 6.0 7.0 8.0 10.8 9.60 8.51

Payout Ratio (%) 78% 89% 87% 82% 75% 80% 90% 100% 100%

Avg. Stock Price 112.6 99.23 76.06 90.06 122.24 151.94 139.15 151.47 169.20

Yield Rate (%) 5.33% 6.05% 5.98% 6.66% 5.73% 5.27% 7.76% 6.34% 5.03%

(Unit: NT$)

78%

89%86%

82%

75%80%

90%

100% 100%

40%

60%

80%

100%

120%

0

2

4

6

8

10

12

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2010 2011 2012 2013 2014 2015 2016 2017 2018

EPS (LHS) Cash Dividend Per Share (LHS) Payout Ratio (RHS)

104’s Mission

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Lowest birth rate

Enable children to find their gifts and compete

Higher ageing rate

Elderly care platform to support current workers and families

Career, talent, & knowledge management

50% profit margin

65 years old

15 years old

CCloud

MMobile

OOpen

SSocial

104 Career Management Platform

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Professional Development Through Social Networking

Adoption of Open APIs to Enrich Services and Achieve a Triple-Win

Third Party Service Providers

104

• CRM Chatbot

• HR Law Platform

• Resume & CareerConsulting Center

https://clazzrooms.com/

https://plus.104.com.tw

https://hunter.104.com.tw/

https://learn.104.com.tw/

https://tutor.104.com.tw/

https://case.104.com.tw/

https://beagiver.com/

https://www.104.com.tw/

https://senior.104.com.tw/

Plus

Clazzrooms

Senior jobs

Case

ExecutiveSearch

Tutor

Giver

Learn

Job Bank

Web App

HR Capital Management Solutions

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Define Talent

Discover Talent

DevelopTalent

Deploy Talent

HR Portal

eHRMS

人力資源管理系統

On-Premise & Customized for Large Companies

Cloud-Based & Standardized for SME

Human Capital Mgmt Recruiting & Onboarding

Shift Arrangement

Payroll & Benefits

Competency Testing & Talent Retention

Mobile Office Latest Industry News

Real Time Administration

Intra-Departmental Comm. & Project Mgmt.

http://ehr.104.com.tw/

HR Market Place

• HR Training & Dev. Courses

• Enterprise Resources Mgmt. Solution

• Employee Convenience Shop

For Seniors

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Sharing of Wisdom Dignity and Autonomy

https://104careu.104.com.tw/

Care Uhttps://senior.104.com.tw/

Senior Jobs

• In-home caregiver coaches Platform.

• Customized self-supporting care plan supported by collaborative medical & healthcare professionals.

• Part-time & full-time jobs for retirees & seniors to open their new chapters.

• To share and pass down their valuable experience & knowledge to next generation.

Touring Art & Handicraft

CookingConsulting

Insufficient caregiving knowledge

Teaching & consultingby 104 Caregiver Coach

Improved health outcomes

Reference Image

For K-12

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World of Workhttps://wow.104.com.tw/https://star.104.com.tw/

• Resources to explore talent: Activities, contests and learning programs.

• Explore, analyze, record and demonstrate children’s gifts and talent.

• Explore a variety of careers based on 104’s job data.

• Ask career-related questions to volunteers in different occupations.

Explore Talents Explore Careers

Spatial

Linguistic

Logical-mathematical

Musical

Naturalist

Bodily-KinestheticInterpersonal

Multiple Intelligences

Intrapersonal CareerMap

Sports

Military,Police

Fin. Inv. & Mgmt.

ConstructionTrans. MFG

Creative Arts

Media

Engineering

FashionMedical & Healthcare

Leisure

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Thank youFor more information, please contact:

Brenda Shih, VP, Chairman’s Office

886-2-2912-6104 ext. 9688 / brenda.shih@104.com.tw