CSRC — Interim / Quarterly Report 2020

May 18, 2020

International CSRC Investment Holdings Co. Investors’ Conference 1Q 2020

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Disclaimer

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 forwardlooking 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.

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01 Biotech Segment

02 Carbon Black Segment 03 1Q 2020 Operating Results

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CSRC Group Business Overview

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E-ONE MOLI
Isdemir, Turkey
AMERICA Brussels, Belgium Liaoning, Mainland China
ASIA
Anhui, Mainland China
EUROPE/MEA
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
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O1 Biotech Segment

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Timeline of Material Events of Synpac Patent

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2020.02 C.A.F.C. denied petition for rehearing re US 712 claim 9 2019.12 2020.02 Genzyme initiated Genzyme raised settlement topic doubts about but broke US royalty after promise to offer 7/10/2021 and proposal filed arbitration

2019.01 2019.06 2019.10 EUR US AAA C.A.F.C. affirmed EP1301201 notification of invalidity ruling B1 revoked arbitration of US 712 claim 9 2019.05 2019.08 Genzyme raised EUR royalty doubts about payment of EUR royalty 1Q19 received EUR Patent Dispute US Patent Dispute

Europe and US Patents

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Europe Patents

US Patents

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4 patents:

3 issued patent: Valid Patent (EP 1782825, 2767291, 3108895) Invalidity 1 patent (No. 1301201 revoked on Jan Challenges 26 2019) Patent Expiration 2021/07/10 Date

Genzyme claims that owes no EUR royalties, arguing that the remaining Arbitration three patents have the same subject matter as the revoked ’201 patent.

*USPN 7,056,712: claims 10, 13, 14, 16, 17 and 19

*USPNs 8,900,552, 9,370,556, 9,907,839 Invalidity ruling of major claim 9 of ’712 patent being appealed to U.S. Supreme Court

2021/07/10 (’552, ’556, ’839 patents) 2023/02/26 (’712 patent)

Genzyme claims that it has no obligation to pay royalties in US after July 10, 2021 due to invalid extended period of No.712.

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Arbitration May Take Longer Due to COVID-19

EUR royalty Filing date: 2019.05.30

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1 2 3 4

1 2 3 4 5 6 7 Arbitrator Preliminary Information Post-Hearing Filing The Award Selection Hearings Submissions Hearing Exchange & Preparation US royalty Filing date: 2020.02.23

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O2 Carbon Black Segment

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Global Auto Sales 2007-2020

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Global Auto Sales
Auto Sales (million units) YoY Change
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120
4.7% 4.7%
1.9%
100
-0.6%
-4.0%
-4.5% -4.0%
80
60
-20.0%
40
20
0
2007 2008 2009 2016 2017 2018 2019 2020 (f)
Source: OICA, IHS Markit, CSRC Group
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Global Supply Chain Crisis Due to COVID-19 (1/3)

India: Mainland China: USA: Localized Germany, Italy, Spain: National Localized lockdown lockdown National lockdown lockdown 2/11-3/10 mid March-mid May mid March-mid May 3/25-5/31

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Under lockdown

Relaxed lockdown

No lockdown

Philippines: Localized lockdown 3/16-5/31 Malaysia: National lockdown 3/18-5/4 Vietnam: Social isolation 4/1-4/12 Thailand: Curfew 4/3-5/31 Indonesia: Social isolation 4/1-5/22

Global Supply Chain Crisis Due to COVID-19 (2/3)

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Mainland China India Taiwan SEA
Tire Market Tire Market Tire Market Tire Market
Export
Export 20% Domestic30%
Export
40% Domestic
Domestic
60% Domestic Export 45% 55%
80% 70%
US
Europe
Europe 21%
28% ROW
42% US
35% Europe
ROW
ROW
59% 50%
59% ROW 11%
68%
US
Europe
US 6%
13%
8%
Source: Customs of countries above, CSRC Group
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Global Supply Chain Crisis Due to COVID-19 (3/3)

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No demand Europe Mainland China ↓80% ↓82% US↓60% in Apr. in Feb. in Apr. India ↓100% No demand in Apr. No demand No demand SEA ↓100% in Apr.

Mainland China Carbon Black Market (1/2)

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2019 & 2020 China PV Sales N330 & Coal Tar Oil Market Price N330 Coal Tar Oil PV Sales ('000 units) YoY Change (%) N330 Coal Tar Oil 3,000 0% RMB $/ton RMB $/ton 2,000 -30% 6,000 3,200 1,000 -60% 0 -90% 2,000 1,200 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

Figures as of Apr. 30, 2020

Source: Notch, SCI99.com, research reports, Baiinfo, CSRC Group

Mainland China Carbon Black Market (2/2) Tire Makers Operating Rate Strategy for Sustainable 71% Value Creation 58% 44% 56% 23% 46% - Increase top-tier customers Jan Feb Mar - Focus on competitive grades of CB, and manufacture with CB Makers Operating Rate dedicated lines 60% 48% 51% - Product customization 50% 45% 40% Jan Feb Mar 2020 2019

• Increase top-tier customers - Focus on competitive grades of CB, and manufacture with dedicated lines

Source: SCI99.com, China Carbon Black Institute, CSRC Group

India Carbon Black Market (1/2)

2019 & 2020 India PV Sales PV Sales ('000 units) YoY Change 0% -20% -40% -60% -80% -100%

280 230 180 130

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What deters auto sales? Bharat-Stage VI (BS6) norms took effect in India from Apr. 2020 COVID-19 pandemic led to nationwide lockdown from 3/25 to 5/31

Source: SIAM, research reports

India Carbon Black Market (2/2)

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Running in the Top Gear India is expected to be the world's 3rd-largest automotive market by 2026

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Top 1 2W and 3W Maker Top 2 Bus Maker

Growth Drivers: Top 1 Tractor Maker Youngest Nation by 2025 Average age of 25 years 3X Per-capita income Top 3 2019-2030 Truck Maker

Source: Bloomberg, National Investment Promotion and Facilitation Agency of India

30

U.S. Carbon Black Market

90 USD/barrel

70

50

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COVID-19 Impacts

The UAW on 3/17 asked the Big Three automakers (GM, Ford, and FCA) to halt production for 2 weeks.

CCC Strategies

CCC has been offering high-end grades and finding diverse use in:

10

Jul-19

Oct-19 Jan-20 Apr-20

WTI (average monthly price) USGC HSFO (3.5%) USGC VLSFO (0.5%)

• Commercial Tires

• Compounding

• Plastics

• Mechanical Rubber Goods

Figures as of Apr. 30, 2020

CSRC Growth Strategies

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Growth Strategies

• Explore new

applications

• Strengthen product

portfolio

• Expand presence to

Taiwan Technology Center

Europe

The Future Trends of Mobility

Environmental Impact ↓

• Long tire life

Electrification ↑

• Driving Experience ↑

• • High degree of blackness & smooth surface

• Sound deadening & noise canceling

• High torque

• Light weight

CB Applications in Automobiles

Automotive coating: EREBOS

Tubes, sound deadening & Display (cover lens ink): dampers: SATIN BLACK EREBOS

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Seals: SATIN BLACK

Green tires: LH

Synthetic leather: CAENEUS

SATIN BLACK

CB Applications in Electronics

Engineered plastics: SATIN BLACK Screen (cover lens ink): EREBOS Insulation paste: EREBOS

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Commitment to Sustainability

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Carbon Black Workshop at Shanwei Elementary School, Taiwan 2019

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O3 1Q 2020 Operating Results

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1Q 2020 Operating Results

Revenue

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NTD million
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6,069
4,466
24,432 22,271
1Q/2019 1Q/2020 2018 2019
EBITDA & %
NTD million
EBITDA EBITDA %
23% 24%
15%
10%
1,419
440 5,846 3,444
1Q/2019 1Q/2020 2018 2019
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Gross Profit & %

NTD million

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Gross Profit Gross Margin %
26% 27%
19%
14%
1,579
652
6,577 4,328
1Q/2019 1Q/2020 2018 2019
Net Income & EPS
NTD million
Net Income Basic EPS (NT$)
3.70
0.78
1.20
755 -0.04 2,994 1,168
-40
1Q/2019 1Q/2020 2018 2019
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Financial Structure

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Current Ratio Debt Ratio (L/A) 2.6 44% 2.3 2.3 2.2 2.2 37% 35% 35% 34% 2016 2017 2018 2019 1Q/2020 2016 2017 2018 2019 1Q/2020 Interest Bearing Debt/Asset Book Value/Share 32% 34.5 27% 31.4 31.8 31.1 24% 30.0 22% 22% 2016 2017 2018 2019 1Q/2020 2016 2017 2018 2019 1Q/2020

Cash Position

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188 Bank deposit & cash equivalent 7,935 Certificate of deposit Total 23.5 9,285 (more than 3 months) billion Marketable securities 6,074 Cash equivalent receivables NTD million

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