2020 General Shareholders’ Meeting of Far Eastern Department store - moving toward the digital retail department and innovating customers' experience.

        On June 24, the 2020 general meeting of shareholders of Far Eastern Department Store was held in the Taipei Hero House auditorium. In 2019, Taiwan's retail market was diversified, digital and intelligent, and Far Eastern Department Store grew steadily in a changing business environment, continuously expanded the market layout, accelerated the digital transformation, adjusted the business model and innovated the customer experience. The whole management team continued outstanding business performance under the difficult circumstance. The parent company, Far Eastern Department store, performed particularly well. The newly opened Xinyi A13 Far Eastern Department store made good use of digital technology to create a unique shopping experience. It successfully boosted its reputation in the Xinyi area of Taipei City, and achieved remarkable results in just three weeks of trial operation.

        Financial performance: the consolidated net profit of Far Eastern Department Store in 108 was 2.15 billion yuan, growing by more than 30%

        In the retail system of Far Eastern Department Store (including the Far Eastern Department store and the reinvested Pacific SOGO Department store, A. Mart, City Super and other retail businesses), the consolidated turnover in 2019 was NT $114.6 billion (the same below), the consolidated net profit after tax was 2.15 billion, the earnings per share was 1.26 yuan, which grew by 34%, and the cash dividend per share was 0.8 yuan. Among them, the parent company, Far Eastern Department store, bucked the trend of growth in the difficult retail market. The turnover and operating profit both broke the company's 53-year record, and the operating profit grew three times more than ten years ago. Compared with the counterparts, Far Eastern Department store can still continue to innovate and grow, creating the greatest benefits for shareholders.

        The Pacific SOGO Department store, A. Mart and City Super reinvested by Far Eastern Department store also performed well. The net profit before tax of the Pacific SOGO Department Store grew by more than 10%, and A. Mart greatly improved its operating profit due to cost saving management. City Super opened the latest fifth generation store---- Xinyi A13, and it is the seventh store in Taiwan with a brand-new store type to comprehensively improve the consumer experience.

        Business strategy: Digital Far Eastern Department store, wonderful experience

        In the face of young digital generation Z, Far Eastern Department Store promotes digital transformation, develops three directions of "digital operation, digital experience and digital management", and becomes the leader of digital retail department stores. The newly opened Far Eastern Department store, Xinyi A13, makes good use of digital technology, so that consumers can enjoy the convenience and customized services brought by technology from entering the store, shopping and leaving the store. Far Eastern Department store also carries out precise marketing through customer relationship management (CRM) system and big data analysis. At present, the number of APP members has increased by two times compared with last year, and the consumption amount has increased by three times. In the future, it will expand the recruitment of members and provide exclusive discounts and services for members.

        In addition, the management department continues to promote digital office, build 65 systems to build EIP, reduce fixed costs, and improve employee productivity. In the future, Far Eastern Department store will continue to create the maximum benefits for shareholders with five major growth drivers, namely, "continuing the exhibition stores, strengthening experience, innovating management, making good use of technology, and developing online shopping".

        Exhibition shop plan: expand the layout and three more exhibition shop in Taiwan

        Far Eastern Department Store continues to diversify its retail layout, develop new markets and meet customers' all-round retail demand. After the opening of Xinyi A13 Far Eastern Department Store, Far Eastern Department Store continues the Zhubei exhibition store. The shopping center in Zhubei started construction in March 2020, and is expected to become the first large-scale shopping center in Hsinchu County after the opening next year. A. Mart and City Super also opened new stores in Taichung and Zhubei respectively. The retail system of Far Eastern Department store invest more in Taiwan with three more stores.

        In terms of cross-strait layout, in addition to adjusting the operation strategy for existing stores to meet the needs of local consumer groups, it has also successively evaluated suitable investment sites and M & A targets in key cities and emerging business circles, and continued to expand the retail layout and scale.

        Implement corporate social responsibility: return on investment of public welfare is 14.06 times, and the department store industry is the highest

        Far Eastern Department Store achieved outstanding performance in CSR in 2019 and won nearly 30 awards at home and abroad. Among them, it won the first Asia Pacific retail CSR award in nearly 40 years for Taiwan department store industry and stood on the international stage. In terms of corporate governance, Far Eastern Department store has always been the benchmark of listed department stores, ranking among the top 20% of excellent enterprises in corporate governance evaluation. In terms of environmental sustainability, Far Eastern Department Store pioneered the use of manufacturing thinking to examine the energy efficiency of service industry, continuously introduced ISO energy management system to reduce fixed operating costs.

        In terms of social feedback, Far Eastern Department Store held five types, 348 public welfare activities of caring for women and children, the disadvantaged families, etc. in 108, and analyzed social return on investment (SROI) for public welfare activities, which was superior to the general merchandise industry. In the future, Far Eastern Department store will continue deep ploughing public welfare, work with the public to attach importance to environmental protection, public welfare and health, and usher in a sustainable and better life.