Coremax Group

Stock Code: 4739
Coremax Corporation
2017 Q3 Investor Conference

Presented by：Jim Ho
Date：2017.12.11

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Notes:

Safe Harbor Notice

The presentation and discussion contain certain forward-looking statements with respect to the results of operation, financial condition and current expectation. The forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include but are not limited to the impact of competitive products and pricing, ability to ramp new products into volume, industry wide shifts in supply and demand for products, industry overcapacity, availability of manufacturing capacity, financial stability in end markets, and other risks.
This document is not and cannot be construed as an offer to purchase or sell securities or other financial products or solicitation of an offer.
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Agenda

Company Profile
Group Structure
2017 Q3 Financial Results（Certified by Accountant）
Consolidated Statements of Comprehensive Income
Sales Breakdown by Products
Consolidated Gross Margin
Consolidated Operating Expenses
Consolidated Operating Income
Consolidated Net Income
Consolidated EPS
From Jan. to Aug. 2017 Global Market of New Energy Vehicles
End Sales of Petrol and Diesel Vehicles Plans－By Country
LiB Market－Sales Forecast of New Energy Vehicles
Development of New Energy Vehicles Affected Nickel Demand
Development of New Energy Vehicles Affected Cobalt Demand
Main Application of Cathode Material
Important Event

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Company Profile

Zhangzhou, China - 2011
Plant Size : 21,361m2
Ningbo, China – 2004
Plant Size : 10,036m2

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Jiangxi, China– 2000
Plant Size : 17,034m2
Jiangxi, China– 2000
Plant Size : 17,034m2
Europe
Asia
Hsinchu, Taiwan (HQ) – 1992
Plant Size : 14,190m2
North America

Africa
Zhuhai, China – 2001
Plant Size : 13,334m2
South America
Australia

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Taichung, Taiwan – 1984
Plant Size : 7,938m2
Rayong, Thailand – 2009
Plant Size : 5,288m2
Toufen, Taiwan – 1961
Plant Size : 71,263m2
Founded in 1992
Capital:NTD7.57 Billion
Number of Employees
376 Persons
Head Office
11 Wenhua Rd.,
Hsinchu Industrial Park
Main Products
Catalyst
Power Battery Materials
Chemical Fertilizer
Specialty Chemicals

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world_map

Group Structure

83.6%
100%
80.18%
100%
100%
70.06%
100%
100%
11.15%
6.85%

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Consolidated Statements of Comprehensive Income

Unit：NTD Thousand
| Item | 2017Q1-Q3 | 2017Q1-Q2 | 2016Q1-Q3 | QoQ | YoY |
| --- | --- | --- | --- | --- | --- |
| Sales Revenue | 3,656,712 | 2,359,195 | 2,982,446 | 55% | 23% |
| Gross Margin | 15% | 14% | 9% | 0.01 | 0.06 |
| Operating Expenses | 165,444 | 110,652 | 156,768 | 50% | 6% |
| Operating Margin | 10% | 9% | 3% | 0.01 | 0.07 |
| Non-operating incomes and expenses | 11,022 | 3,521 | 154,820 | 213% | -93% |
| Net Income | 317,604 | 188,166 | 212,183 | 69% | 50% |
| Net Margin | 9% | 8% | 7% | 0.01 | 0.02 |
| EPS | 3.92 | 2.36 | 2.76 | 66% | 42% |
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2017Q3 Sales Breakdown by Products

Unit：NTD Thousand
| Catalyst | Power Battery | Chemical Fertilizer | Specialty Chemicals | Others | Total Sales Revenue |
| --- | --- | --- | --- | --- | --- |
| 156,109 | 518,959 | 232,107 | 156,686 | 233,656 | 1,297,517 |
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2017Q1-Q3 Sales Breakdown by Products

Unit：NTD Thousand
| Catalyst | Power Battery | Chemical Fertilizer | Specialty Chemicals | Others | Total Sales Revenue |
| --- | --- | --- | --- | --- | --- |
| 462,179 | 1,298,283 | 623,763 | 549,224 | 723,262 | 3,656,712 |
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Quarterly Sales Breakdown by Products

YoY:43.36% ； QoQ:11.96%
YoY:58.79% ； QoQ:40.04%

YoY:15.39% ； QoQ:32.13%
YoY:-8.07% ； QoQ:-28.59%
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Consolidated Gross Margin

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Consolidated Operating Expenses

Unit：NTD Million
YoY:6% ； QoQ:50%

Operating Expenses

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Consolidated Operating Income

Unit：NTD Million

YoY:272% ； QoQ:68%

Operating Margin

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Notes:

Consolidated Net Income

Unit：NTD Million

YoY:50% ； QoQ:69%

Net Margin

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Notes:

Consolidated EPS

Unit：NTD

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Notes:

From Jan. to Aug. 2017 Global Market of New Energy Vehicles

Top 15 Sales from Jan. to Aug. : 366,000 units. The market share is around 56%.
There are 4 PHEV of the top 15 Sales：Prius、Chevrolet volt、BYD Song DM、Roewe eRX5，Total 78,000 Units.
Top 1 sales is Nissan Note with huge advantages. Total Sales 68,000 units.
There are 6 Self-owned brands. Total Sales 116,000 units. The market share is around 18%.
BEV
PHEV

Unit: Units
Sources：2017 China International Nickel & Cobalt Industrial Forum
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Notes:

End Sales of Petrol and Diesel Vehicles Plans－By Country

USA CARB

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Netherlands

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Norway

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Germany

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United Kingdom

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Sources：2017 China International Nickel & Cobalt Industrial Forum
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LiB Market－Sales Forecast of New Energy Vehicles

Sources：2017 China International Nickel & Cobalt Industrial Forum
Forecast sales of new energy vehicles in 2017 will be expected to reach 1200K units. The sales in China will be around 650K units;
Forecast sales of new energy vehicles in 2020 will be expected to reach 3500K units. The sales in China will be around 2000K units.
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Development of New Energy Vehicles Affected Nickel Demand

Sources：2017 China International Nickel & Cobalt Industrial Forum
Forecast nickel demand of cathode material in 2017 will be expected to reach 53,000 tons. 50% of the nickel demand comes from NCM523;
Forecast nickel demand of cathode material in 2020 will be expected to reach 140,000 tons. Over 50% (over 70K tons) of the nickel demand comes from nickel-rich NCA and NCM811;
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Development of New Energy Vehicles Affected Cobalt Demand

Sources：2017 China International Nickel & Cobalt Industrial Forum
Forecast cobalt demand of cathode material in 2017 will be expected to reach 60,000 tons. 67% of the cobalt demand (41,000 tons) comes from LCO. 33% of the cobalt demand (21,000 tons) comes from NCM & NCA.
Forecast cobalt demand of cathode material in 2020 will be expected to reach 80,000 tons. 56% of the cobalt demand (45,000 tons) comes from LCO. 44% of cobalt demand (35,000 tons) comes from NCM & NCA.
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Main Application of Cathode Material

Sources：2017 China International Nickel & Cobalt Industrial Forum
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Important Event

At 10/31, # 47392, convertible bondⅡ, roughly NT $36.2 million has not been converted, the expected conversion shares of about 682,000 shares.
After the $36.2 million converted, the capital will be NT $868 million.

The company's third power battery material production line is operation now, the current production rate is about 50%, still under process adjustment stage.

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CoreMax Your Best Choice! Best Partner!

Thank you for your attention!
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Notes:

Annex I Corporate Milestone-1

1992 First catalyst production line started.

1994 First recovery catalyst production line completed.

1996 Company name changed to Coremax Taiwan Corporation.
Passed ISO 9002 certificate.

1999 Completed production line of advanced material and battery material.

Obtained the Ministry of Economic Affairs subsidies for Development plan of High
performance LiB cathode material .
Company name changed to Coremax Corporation.

2001 Set up “Coremax Malaysia Sdn. Bhd.” to supply BP、Exxon Mobil PTA
Set up “Coremax Zhuhai Chemicals Co., Ltd.” to exclusive supply catalyst to BP PTA

Set up “Coremax Ningbo Chemical Co., Ltd.” to supply Formosa Chemicals (Ningbo) and
Ningbo Mitsubishi Chemical.

2009 Set up “Coremax (Thailand) Co., Ltd. “ to supply TPT PTA and Siam Mitsui PTA
Passed ISO 14000 certificate.
Expanded battery material production line in Hsinchu Taiwan.
Invested Heng-I Chemical Co., Ltd.

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Annex I Corporate Milestone-2

2010 Set up battery material production line in Toufen Taiwan.
Listed at emerging stock market.

Set up “Coremax (Zhangzhou) Chemicals Co., Ltd to exclusive supply Xianglu PTA.
Introduced Itochu Corporation to overall arrangement catalyst and battery material business.
Listed at over-the-counter market

2013 Constructed sulfuric acid plant at Heng-I Chemical

Set up Cobalt Sulfate production line and second Nickel Sulfate production line.
Heng-I Chemical added wasted sulfuric recovery business.
Invested Uranus Chemicals Co., Ltd.

2015 Introduced JCAM AGRI and set up JCAM Taiwan.

2016 Acquired 100% share of Uranus Chemicals Co., Ltd.

Set up third battery material production line at Toufen Taiwan.
Listed at stock exchange market.

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Notes:

Annex II Product Categories and Applications

Sales Percentage

Application
End Products

Catalyst
(≒12%)

PTA、PIA、PET

Lithium battery-
precursor、
Printed circuit board

pcb
Power Battery
(≒36%)

Tire adhesive promoter, Semiconductors、Panel

Specialty Chemicals
(≒12%)

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Chemical Fertilizer
(≒17%)

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Agriculture

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Notes:

Annex III Production Capacity-1

Catalyst Products
Co Acetate : Hsinchu Plant - 1,200 MT/Year (100 MT/Month)
Ningbo Plant - 600 MT/Year (50 MT/Month)
Rayong Plant - 360 MT/Year (30 MT/Month)
Mn Acetate : Hsinchu Plant - 1,200 MT/Year (100 MT/Month)
Ningbo Plant - 600 MT/Year (50 MT/Month)
Rayong Plant - 360 MT/Year (30 MT/Month)
Co/Mn Liquid : Hsinchu Plant - 9,000 MT/Year (750 MT/Month)
Zhuhai Plant - 2,400 MT/Year (200 MT/month)
Ningbo Plant - 9,000 MT/Year (750 MT/Month)
Rayong Plant - 6,000 MT/Year (500 MT/Month)
Zhangzhou Plant - 9,000 MT/Year (750 MT/Month)

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Notes:

Annex III Production Capacity-2

Power Battery Products
Co Oxide : Hsinchu Plant - 960 MT/Year (80 MT/Month)
Co Sulfate : Hsinchu Plant - 4,800 MT/Year (400 MT/Month)
Ni Sulfate : Toufen Plant L1 & L2 - 14,400 MT/Year (1,200 MT/Month)
Toufen Plant L3 - 18,000 MT/Year (1,500 MT/Month)

8011

CIMG1504

8021
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Annex III Production Capacity-3

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Specialty Chemicals
Co Hydroxide : Hsinchu Plant - 1,680 MT/Year (140 MT/Month)
Industrial Grade Sulfuric Acid : Toufen Plant - 99,000 MT/Year (8,250 MT/Month)
Electronic Grade Sulfuric Acid : Toufen Plant - 66,000 MT/Year (5,500 MT/Month)
Etching Solution : Hsinchu Plant - 9,000 MT/Year (750 MT/Month)
Oxalic Acid : Taichung Plant - 3,000 MT/Year (250 MT/Month)
Chemical Fertilizer Products
N.P.K. Mixed Fertilizer : Toufen Plant - 72,000 MT/Year (6,000 MT/Month)
Organic Compound Fertilizer : Toufen Plant - 30,000 MT/Year (2,500 MT/Month)
Ammonium Sulfate : Toufen Plant - 7,500 MT/Year (625 MT/Month)

SA8全景

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AI assistant

COREMAX Investor Presentation 2017

Coremax Group

Notes:

Safe Harbor Notice

Agenda

Company Profile

Group Structure

Consolidated Statements of Comprehensive Income

2017Q3 Sales Breakdown by Products

2017Q1-Q3 Sales Breakdown by Products

Quarterly Sales Breakdown by Products

Consolidated Gross Margin

Consolidated Operating Expenses

Consolidated Operating Income

Notes:

Consolidated Net Income

Notes:

Consolidated EPS

Notes:

From Jan. to Aug. 2017 Global Market of New Energy Vehicles

Notes:

End Sales of Petrol and Diesel Vehicles Plans－By Country

LiB Market－Sales Forecast of New Energy Vehicles

Development of New Energy Vehicles Affected Nickel Demand

Development of New Energy Vehicles Affected Cobalt Demand

Main Application of Cathode Material

Important Event

CoreMax Your Best Choice! Best Partner!

Notes:

Notes:

Notes:

Annex III Production Capacity-1

Notes:

Annex III Production Capacity-2

Annex III Production Capacity-3

AI assistant

COREMAX — Investor Presentation 2017

Coremax Group

Notes:

Safe Harbor Notice

Agenda

Company Profile

Group Structure

Consolidated Statements of Comprehensive Income

2017Q3 Sales Breakdown by Products

2017Q1-Q3 Sales Breakdown by Products

Quarterly Sales Breakdown by Products

Consolidated Gross Margin

Consolidated Operating Expenses

Consolidated Operating Income

Notes:

Consolidated Net Income

Notes:

Consolidated EPS

Notes:

From Jan. to Aug. 2017 Global Market of New Energy Vehicles

Notes:

End Sales of Petrol and Diesel Vehicles Plans－By Country

LiB Market－Sales Forecast of New Energy Vehicles

Development of New Energy Vehicles Affected Nickel Demand

Development of New Energy Vehicles Affected Cobalt Demand

Main Application of Cathode Material

Important Event

CoreMax Your Best Choice! Best Partner!

Notes:

Notes:

Notes:

Annex III Production Capacity-1

Notes:

Annex III Production Capacity-2

Annex III Production Capacity-3

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