CSRC — Interim / Quarterly Report 2019

May 13, 2019

2019 Q1

==> picture [155 x 55] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

International CSRC Investment Holdings Co. INVESTOR’S CONFERENCE

Disclaimer

==> picture [137 x 74] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

The forward-looking statements contained in this presentation are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these forward-looking statements.

International CSRC Investment Holdings Co. makes no representation or warranty as to the accuracy or completeness of these forward-looking statements and nor does International CSRC Investment Holdings Co. undertake any obligation to update any forward-looking statements, whether as a result of new information or future events.

==> picture [99 x 62] intentionally omitted <==

CSRC Group Business Overview

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

==> picture [863 x 418] intentionally omitted <==

----- Start of picture text -----

E-ONE MOLI
AMERICA Brussels, Belgium Liaoning, Mainland China
EUROPE/MEA ASIA
Anhui, Mainland China
Barberton, OH Chongqing, Mainland China
Taipei, Taiwan
Phenix City, AL
Sunray, TX
Kaohsiung, Taiwan
Ponca City, OK Kemya, Saudi Arabia E-ONE MOLI
Houston, TX New Delhi, India
Gujarat, India
Manufacturing Sites
Expansion Site
Technology Centers
Licensee Manufacturing Site
Offices
E-ONE MOLI
----- End of picture text -----

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

==> picture [361 x 40] intentionally omitted <==

01 Carbon Black Segment

02 Battery Segment 03 1Q 2019 Operating Results

==> picture [73 x 40] intentionally omitted <==

==> picture [137 x 74] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

O1 Carbon Black Segment

==> picture [99 x 62] intentionally omitted <==

Capacity of Major Carbon Black Makers

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

==> picture [777 x 399] intentionally omitted <==

----- Start of picture text -----

MT (‘000)
India
85
Taiwan
USA
2,133 120
2,050 305
Mainland China
285
1,211
1,155
941
795795
515 505
400
Cabot Birla Orion Black Cat Tokai & Sid CSRC PCBL OMSK Longxing
Richardson
Tokai completed acquisition of Sid Richardson in Sept. 2018
----- End of picture text -----

Source : Notch Consulting Inc., 2018

Worldwide Carbon Black Demand & Supply

Worldwide

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

==> picture [708 x 398] intentionally omitted <==

----- Start of picture text -----

Supply Demand CAGR
Demand CAGR = 2.8%
2017 2018 2019 2020 2021 2022
Mainland China India
CAGR Supply Demand CAGR Supply Demand CAGR
Demand CAGR = 3.6% Demand CAGR = 4.9%
2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
----- End of picture text -----

==> picture [112 x 14] intentionally omitted <==

----- Start of picture text -----

North America
----- End of picture text -----

==> picture [210 x 157] intentionally omitted <==

----- Start of picture text -----

Supply Demand CAGR
Demand CAGR = 3.1%
2017 2018 2019 2020 2021 2022
----- End of picture text -----

Source : Future Markets & Notch Consulting Inc., 2018

Worldwide CB Demand for Tire/Non-Tire Applications

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

North America CAGR 1.6% Asia CAGR 3.9%

==> picture [889 x 360] intentionally omitted <==

----- Start of picture text -----

Worldwide CAGR CAGR
Demand ‘14-’17 ‘17-’22
Tire 2.9% 2.7% 694 752 1979 2400
2017 2022 2017 2022
Non-Tire 2.3% 3.1% Non-tire CAGR Non-tire CAGR
Mainland China CAGR 4.4% India CAGR 3.5%
1155 1430 166 197
2017 2022 2017 2022
Non-tire CAGR Non-tire CAGR
Source : Notch Consulting Inc., 2018 Unit: MT (‘000)
----- End of picture text -----

Source : Notch Consulting Inc., 2018

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

Overview and Outlook

Mainland China:

Estimated GP/Mt among Chinese Makers

• Uncertainties are expected Chinese Makers to continue into Q2. 4Q/18 • Weaker demand coming from tire market. USA: • Demand growth is expected to continue into 2019. India: Taiwan: • Peers continue to announce • Market demand has been • Higher utilization rate with price increase due to strong strong. Supply is catching up co-generator revamping. • demand. quickly. Carbon black production is • Selling price is impacted by expected to increase. imports from China.

1Q/19

Source: BAIINFO.COM Inc., 4/11/2019

==> picture [71 x 90] intentionally omitted <==

High-Value Applications

==> picture [869 x 482] intentionally omitted <==

----- Start of picture text -----

Special
Applications
Non-Tire
Rubber
----- End of picture text -----

CSRC Non-Tire Business

==> picture [444 x 485] intentionally omitted <==

----- Start of picture text -----

Compounder
Mechanical
Rubber Goods
Plastics
----- End of picture text -----

==> picture [66 x 83] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

==> picture [472 x 451] intentionally omitted <==

----- Start of picture text -----

Tire/Non-Tire Sales Volume %
Non-Tire
23% 28%
Volume 13%↑
77% 72%
2017 2018
Tire Non-tire
----- End of picture text -----

Non-Commodity Product

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

R&D Capabilities Leverage R&D strength to develop a range of non-tire carbon black products.

Demand Growth The demand growth of non-tire rubber is expected to be Stronger Demand stronger than tire rubber.

==> picture [143 x 116] intentionally omitted <==

Diversification Diversify applications, product portfolio, and clientele.

R&D Investment

Diversification Niche Carbon Non-Commodity CB Black Taking carbon black products to the next level.

Rapid Growth through Product Innovation

==> picture [125 x 68] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

2017 2018 2019

==> picture [112 x 15] intentionally omitted <==

----- Start of picture text -----

2020 Onward
----- End of picture text -----

R&D centers built Low rolling Non-tire rubber Moving towards in Taiwan & India resistance tire applications special applications development

==> picture [197 x 177] intentionally omitted <==

==> picture [196 x 177] intentionally omitted <==

==> picture [197 x 177] intentionally omitted <==

==> picture [196 x 177] intentionally omitted <==

Expansion in India

==> picture [931 x 492] intentionally omitted <==

----- Start of picture text -----

New plant CCET:
•
Basic design accomplished
•
Land acquired, preparation
•
Advantageous geographical location
stage
•
Customers and feedstock cluster
•
Dahej,
Well-developed infrastructure Business model
• Gujarat
Higher economic growth Residual
•
Friendly investment environment
Power Carbon black Sell
Internal Use
Steam Sell
----- End of picture text -----

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

Reduction Rate

==> picture [834 x 431] intentionally omitted <==

----- Start of picture text -----

Anhui, Mainland China Liaoning, Mainland China Chongqing, Mainland China
1992-2019 2001-2019 2011-2019
SOx 96 %↓ SOx 70 %↓ SOx 91 %↓
NOx 91 %↓ NOx 57 %↓ NOx 34 %↓
AMERICA Liaoning, Mainland China
EUROPE/MEA ASIA
Anhui, Mainland China
Sunray, TX
Chongqing, Mainland China
Ponca City, OK Phenix City, AL
Ponca & Phenix City, USA New Delhi, India Kaohsiung, Taiwan
2022~ 1986-2019 1992-2019
SOx 130 ppm↓ SOx 58 %↓ SOx 99 %↓
NOx 38 ppm↓ NOx 24 %↓ NOx 73 %↓
----- End of picture text -----

Commitment to Sustainability

==> picture [349 x 220] intentionally omitted <==

Top 23% EcoVadis 2019 Ratings

==> picture [234 x 234] intentionally omitted <==

==> picture [341 x 211] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

==> picture [346 x 220] intentionally omitted <==

==> picture [338 x 211] intentionally omitted <==

==> picture [137 x 74] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

O2 Battery Segment

==> picture [99 x 62] intentionally omitted <==

Market Ecosystem

==> picture [112 x 32] intentionally omitted <==

==> picture [96 x 52] intentionally omitted <==

NCA Cathode Material Fast Charging & Discharging Energy Storage System

==> picture [960 x 177] intentionally omitted <==

Lithium Battery Market Trend (MWh Capacity Basis)

==> picture [112 x 32] intentionally omitted <==

==> picture [904 x 400] intentionally omitted <==

----- Start of picture text -----

|||
|---|---|
|MWh/CY|LiB market trend by major applications|
|2000,000|
|180,000|
|160,000|
|140,000|
|120,000|
|100,000|
|80,000|
|60,000|
|40,000|
|20,000|
|0|
|2017 2018E 2019F|2020F 2021F 2022F 2023F|
|Other portables: tablet, DSC, cam corder, PMP, game & peripherals|
|Other power Apps: power tools, shaver & toothbrush, e-bicycle, cleaner|
|Others: power banks, ESS, etc|

----- End of picture text -----

==> picture [74 x 40] intentionally omitted <==

Source: TSR report, 2018Q4

Market Position and Application

==> picture [106 x 68] intentionally omitted <==

==> picture [112 x 32] intentionally omitted <==

Energy storage system E-mobility • • EV Frequency balancing • • Super charger E-bus/E-truck • • Auxiliary service E-motorcycle 2,500 • E-scooter (1MW, discharge within 15min) P45A • • Demand response E-bike • P42A • BBU for data center UAV/Drone 2,000 15Ah • Japanese Maker E-boat Telecom 5G Korean Maker • Start-stop system • Base station energy storage 1,500 Home & personal device • Shaver & T-brush Power applications • • Garden tools Vacuum cleaner 1,000 • • 100 200 300 Patient monitoring Backpack harness Energy density, Wh/kg

==> picture [951 x 536] intentionally omitted <==

----- Start of picture text -----

Application - High Power
E-Mobility Uber Jump E-motorcycle
1MWh ESS (Longjing) 1MWh ESS (ITRI)
Drones Uber Elevate
Life support system
Dyson vacuum cleaner Garden tools Exo-skeleton technology
21
----- End of picture text -----

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

Continuing Momentum in 2019 and Beyond

==> picture [149 x 122] intentionally omitted <==

==> picture [268 x 33] intentionally omitted <==

Leveraging technology for competitive advantage

-Cathode: Ni rich NCA

-Anode: C+Si/SiO

-High Safety Separator

-Functional E/L

==> picture [268 x 137] intentionally omitted <==

Cooperate with suppliers to develop next-generation materials Enhance R&D capabilities & double R&D talents Advanced production lines provide accuracy & capacity

==> picture [960 x 540] intentionally omitted <==

----- Start of picture text -----

Operating Results
Revenue Net Income
NTD million NTD million
972
963
904
782
170
624 120
0.74
35 33
1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19
----- End of picture text -----

==> picture [137 x 74] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

O3 1Q 2019 Operating Results

==> picture [99 x 62] intentionally omitted <==

1Q 2019 Operating Results

==> picture [302 x 51] intentionally omitted <==

----- Start of picture text -----

Revenue
----- End of picture text -----

==> picture [78 x 10] intentionally omitted <==

----- Start of picture text -----

NTD million
----- End of picture text -----

==> picture [332 x 41] intentionally omitted <==

----- Start of picture text -----

Gross Profit & %
----- End of picture text -----

NTD million

==> picture [71 x 90] intentionally omitted <==

Gross Margin Gross Margin %

==> picture [96 x 53] intentionally omitted <==

==> picture [335 x 350] intentionally omitted <==

----- Start of picture text -----

20,114 24,432
5,435 6,069
1Q/2018 1Q/2019 2017 2018
EBITDA & %
NTD million
EBITDA EBITDA %
24% 23% 23% 24%
1,317 1,419 4,701 5,846
1Q/2018 1Q/2019 2017 2018
----- End of picture text -----

==> picture [343 x 356] intentionally omitted <==

----- Start of picture text -----

27%
28%
28% 26%
1,511 1,579 5,570 6,577
1Q/2018 1Q/2019 2017 2018
Net Income & EPS
NTD million
Net Income Basic EPS (NT$)
4.18
3.35
1.17
0.88
794 755 2,273 2,994
1Q/2018 1Q/2019 2017 2018
----- End of picture text -----

1Q 2019 Operating Results by Segments

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

==> picture [868 x 398] intentionally omitted <==

----- Start of picture text -----

Revenue NTD Million Operating Income NTD Million
962 1,018 3,987
3,881
624 782 3,463
2,125
3,679
915
962
3,134
3,849 4,262 14,082 16,944
15 330
26
181
150 510 668
1Q/2018 1Q/2019 2017 2018 1Q/2018 1Q/2019 -21 2017 2018
Carbon Black Battery Biotech Carbon Black Battery Biotech
----- End of picture text -----

Carbon Black Sales & Gross Profit Margin

==> picture [598 x 372] intentionally omitted <==

----- Start of picture text -----

15.8% 15.6%
10.4% 9.2% 12.2% 11.5% 10.2%
6.2%
4,524
4,303 4,268 4,262
3,849
3,719
3,514
3,405
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
Sales GM %
NTD million
GM %
----- End of picture text -----

==> picture [116 x 63] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

==> picture [102 x 83] intentionally omitted <==

Financial Structure

==> picture [690 x 436] intentionally omitted <==

----- Start of picture text -----

Current Ratio
3
2.6
2.5
2.3
2.2
2.0
2
Interest bearing Debt/ Asset
80% (consolidated)
1
2015 2016 2017 2018 1Q/2019
60% % [Debt Ratio ( L/A)]
50
44
40% 40 38 37
32.1% 35 36
28.4%
26.9% 24.5%
24.2%
30
20%
2015 2016 2017 2018 1Q/2019
Book Value / share
0% 50
2015 2016 2017 2018 1Q/2019
40 36.2
34.5
31.4 31.8
29.0
30
20
2015 2016 2017 2018 1Q/2019
----- End of picture text -----

==> picture [116 x 63] intentionally omitted <==

==> picture [137 x 74] intentionally omitted <==

==> picture [71 x 90] intentionally omitted <==

==> picture [349 x 123] intentionally omitted <==

We Appreciate Your Listening! csrcir@csrcgroup.com

==> picture [99 x 62] intentionally omitted <==