June 2017

http: //www.pouchen.com

E-mail: ir@pouchen.com

Table of Contents

Page

1. PCG’s Profile 2

2. Business Overview 3

3. Footwear Business – Yue Yuen 5

4. Retail Business – Pou Sheng 7

5. Financial Highlights 9

1

• Founded in 1969; listed on the TWSE in 1990

• Paid in Capital: US$972 mn (NT$29.47 bn)

• Market Cap.: US$4,081 mn (@NT$42.00 as of 2017/03/31)

• Revenue: 1Q2017 Consolidated Sales US$2,109 mn (NT$65.57 bn)

• Product Mix: Footwear 67.5%, Retail 32.1%, Others 0.4% (as of 1Q2017 Consolidated Sales)

• Footwear Business

– Volume: Made 80.7 million pairs in 1Q2017; made 322.0 million pairs in FY2016

– Market Share: 20% of the combined wholesales value of the global branded athletic and

causal footwear market (including JVs)

– Customers: Leading international brands such as adidas, Asics, Nike, Salomon and

Timberland

• Retail Business

– Target Market: The Greater China

– POS: 8,843 POS (5,545 self-run and 3,298 sub-distributor) (as of 2017/03/31)

PCG’s Profile

Pou Chen Group -- The largest footwear manufacture Group in the world

2

Pou Chen: (Consolidated)

FY2014 FY2015 FY2016 1Q2016 1Q2017

(NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %)

Footwear 183,292 75.1% 195,313 72.6% 194,830 70.9% 46,700 69.2% 44,245 67.5%

Retail 59,891 24.6% 72,927 27.1% 78,880 28.7% 20,545 30.5% 21,033 32.1%

Others 793 0.3% 841 0.3% 1,185 0.4% 196 0.3% 287 0.4%

Total 243,976 100% 269,081 100% 274,895 100% 67,441 100% 65,565 100%

3

Business Overview

Business Segment Mix

(1) Pou Chen identified “Footwear business”, “Retail business” and “Others” as its three reportable segments.

(NT$mn)

183,292 195,313 194,830

46,700 44,245

2014 2015 2016 1Q2016 1Q2017

(NT$mn) (NT$mn)

(NT$mn)

59,891 72,927 78,880

20,545 21,033

2014 2015 2016 1Q2016 1Q2017

793 841 1,185

196 287

2014 2015 2016 1Q2016 1Q2017

243,976 269,081 274,895

67,441 65,565

2014 2015 2016 1Q2016 1Q2017

4

Revenue – Footwear Business Revenue - Retail Business

Revenue – Others Revenue - Total

Business Overview

Pou Chen’s 5M2017 unaudited consolidated sales ended 2017/05/31 decreased Y-o-Y by 1.6% to NT$114.4 bn.

(US$mn) FY2014 FY2015 FY2016 1Q2016 1Q2017 YoY

(%)

Revenue 8,013 8,435 8,481 2,028 2,101 +3.6%

Gross Profit 1,774 1,972 2,133 495 526 +6.2%

Gross Margin 22.1% 23.4% 25.2% 24.4% 25.0%

Net Income(1) 331 390 535 95 124 +30.6%

Net Margin 4.1% 4.6% 6.3% 4.7% 5.9%

Category FY2014 FY2015 FY2016 1Q2016 1Q2017 YoY

(US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (%)

Athletic Shoes 3,870 48.3% 4,016 47.6% 4,110 48.5% 960 47.3% 996 47.4% +3.8%

Casual/Outdoor Shoes 1,429 17.8% 1,366 16.2% 1,231 14.5% 273 13.5% 262 12.5% -4.1%

Sports Sandals 85 1.1% 94 1.1% 94 1.1% 37 1.8% 30 1.4% -19.0%

Retail & Brand Licensee 1,976 24.6% 2,298 27.3% 2,441 28.8% 619 30.5% 676 32.2% +9.2%

Soles, Components, Others 653 8.2% 661 7.8% 605 7.1% 139 6.9% 137 6.5% -1.7%

Total 8,013 100% 8,435 100% 8,481 100% 2,028 100% 2,101 100% +3.6%

5

Footwear Business – Yue Yuen

Product Mix

Financial Highlights

(1) Net profit attributable to owners of the Company, excluding “non-controlling interests”

1,774 1,972 2,133 495 526

22.1%

23.4%

25.2% 24.4%

25.0%

19.8% 19.7% 20.9%

19.8% 21.0%

16.0%17.0%18.0%19.0%20.0%21.0%22.0%23.0%24.0%25.0%26.0%27.0%28.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2014 2015 2016 1Q2016 1Q2017

Yue Yuen OEM/ODM

(US$mm)

(US$mn)

Revenue Gross Margin

Net Income(1) Net Margin

(US$mn)

6

8,013 8,435 8,481

2,028 2,101

2014 2015 2016 1Q2016 1Q2017

331 390 535

95 124

2014 2015 2016 1Q2016 1Q2017

4.1% 4.6%

6.3%

4.7% 5.9%

2014 2015 2016 1Q2016 1Q2017

Financial Highlights – Yue Yuen

Yue Yuen’s 5M2017 unaudited sales ended 2017/05/31 increased Y-o-Y by 5.2% to US$3.7 bn.

(1) Net profit attributable to owners of the Company, excluding “non-controlling interests”

(RMB$mn) FY2015 FY2016 1Q2016 1Q2017 YoY

(%)

Revenue 14,466 16,236 4,086 4,674 +14.4%

Gross Profit 4,818 5,768 1,426 1,569 +10.0%

Gross Margin 33.3% 35.5% 34.9% 33.6%

Operating Profit 599 924 267 211 -20.9%

Operating Margin 4.1% 5.7% 6.5% 4.5%

Net Income(2) 397 561 143 104 -27.4%

Net Margin 2.7% 3.5% 3.5% 2.2%

(POS) Directly-Operated Sub-Distributor Total

2016/12/31 5,560 3,199 8,759

Net Increase (Decrease) (15) 99 84

2017/03/31 5,545 3,298 8,843 7

Financial Highlights

Store Network

(1) Pou Sheng has adopted RMB as its presentation currency from USD starting from 1H2016. (2) Net profit attributable to owners of the Company, excluding “non-controlling interests”.

Retail Business – Pou Sheng

4,818

5,768

1,426 1,569

33.3% 35.5%

34.9% 33.6%

20.0%

25.0%

30.0%

35.0%

40.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2015 2016 1Q2016 1Q2017

397

561

143 104

2015 2016 1Q2016 1Q2017

(RMB$mn)

14,466 16,236

4,086 4,674

2015 2016 1Q2016 1Q2017

(RMB$mn)

2.7% 3.5% 3.5%

2.2%

2015 2016 1Q2016 1Q2017

(RMB$mn)

8

Revenue Gross Margin

Net Income(1) Net Margin

Financial Highlights – Pou Sheng

Pou Sheng’s 5M2017 unaudited sales ended 2017/05/31 increased Y-o-Y by 14.6% to RMB 8.1 bn (US$1.2 bn).

(1) Net profit attributable to owners of the Company, excluding “non-controlling interests”

(NT$mn) FY2014 FY2015 FY2016

Revenue 243,976 269,081 274,895

Gross Profit 55,269 64,505 70,383

Gross Margin 22.6% 24.0% 25.6%

Operating Income 7,921 12,353 17,629

Operating Margin 3.2% 4.6% 6.4%

Non-operating Income, net 7,953 7,887 8,651

Profit before taxation 15,874 20,240 26,280

Income Tax Expense 2,015 3,639 3,278

Net Income(1) 8,616 9,531 13,057

Net Margin 3.5% 3.5% 4.8%

EPS (NT$) 2.93 3.24 4.43

9

Financial Highlights – PCC (Consolidated)

(1) Net profit attributable to owners of the Company, excluding “non-controlling interests”

(NT$mn) 1Q2016 1Q2017 YoY

(%)

Revenue 67,441 65,565 -2.8%

Gross Profit 16,777 16,744 -0.2%

Gross Margin 24.9% 25.5%

Operating Income 3,630 3,905 +7.6%

Operating Margin 5.4% 6.0%

Non-operating Income, net 2,329 743 -68.1%

Profit before taxation 5,959 4,648 -22.0%

Income Tax Expense 1,021 859 -15.9%

Net Income(1) 3,007 1,627 -45.9%

Net Margin 4.4% 2.5%

EPS (NT$) 1.02 0.55 -46.1%

10

Financial Highlights – PCC (Consolidated)

Contributed by the improved operational efficiency, PCC’s Gross Margin and Operating Margin in 1Q2017 had a better performance compared with the same period last year.

(1) Net profit attributable to owners of the Company, excluding “non-controlling interests”

2.93 3.24

4.43

1.02 0.55

3.5% 3.5%

4.8%

4.4%

2.5%

0.0%

2.0%

4.0%

6.0%

8.0%

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2014 2015 2016 1Q2016 1Q2017

8,616 9,531

13,057

3,007 1,627

2014 2015 2016 1Q2016 1Q2017

55,269

64,505 70,383

16,777 16,744 22.6%

24.0%

25.6% 24.9%

25.5%

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2014 2015 2016 1Q2016 1Q2017

(NT$mn)

243,976 269,081 274,895

67,441 65,565

2014 2015 2016 1Q2016 1Q2017

(NT$mn) (NT$mn)

(NT$)

11

Revenue Gross Margin

Net Income(1) EPS/Net Margin

Financial Highlights – PCC (Consolidated)

(1) Net profit attributable to owners of the company, excluding “non-controlling interests”.

75.1% 72.6% 70.9% 69.2% 67.5%

24.6% 27.1% 28.7% 30.5% 32.1%

0.3% 0.3% 0.4% 0.3% 0.4%

0%

20%

40%

60%

80%

100%

2014 2015 2016 1Q2016 1Q2017

Footwear Retail Other

87.5% 80.6% 78.9% 75.0% 78.9%

10.7% 17.8% 19.4% 23.5% 19.3%

1.8% 1.6% 1.7% 1.5% 1.8%

0%

20%

40%

60%

80%

100%

2014 2015 2016 1Q2016 1Q2017

Footwear Retail Other

Financial Highlights – PCC (Consolidated)

Segment Revenue Segment Income(1)

(1) Pou Chen identified “Footwear business”, “Retail business” and “Others” as its three reportable segments. Besides, “Segment Income” represented the profit before income tax earned by each segment without allocation of administration costs, remuneration to directors and supervisors, other income, other gains and losses, finance costs and share of the profit of associates and joint ventures.

12

Dividend Policy

Per Share FY2014(1) FY2015(1) FY2016(1)

Dividend

- Pou Chen (NT$) 1.50 (Cash 1.50)

1.50 (Cash 1.50)

1.50 (Cash 1.50)

- Yue Yuen (HK$) 1.15 (Interim 0.35 / Final 0.80)

1.20 (Interim 0.40 / Final 0.80)

1.40 (Interim 0.40 / Final 1.00)

- Pou Sheng (HK$) - - 0.04 (Interim 0.02 / Final 0.02)

Cash Dividend Yield(2)

- Pou Chen 3.9% (@NT$38.45)

3.5% (@NT$43.10)

3.7% (@NT$40.20)

- Yue Yuen 4.1% (@HK$27.95)

4.6% (@HK$26.35)

5.0% (@HK$28.15)

- Pou Sheng - - 1.8% (@HK$2.23)

Cash Dividend Payout Ratio

- Pou Chen 51.2% 46.3% 33.9%

- Yue Yuen 73.9% 65.4% 55.7%

- Pou Sheng - - 32.1%

(1) The dividends for 2014, 2015 and 2016 would be distributed in next years. (2) The cash dividend yield was divided by the market closing price at the end of 2014, 2015 and 2016. 13