CSRC — Interim / Quarterly Report 2021

May 18, 2021

1Q 2021 1Q 2021 International CSRC Investment Holdings Co. International CSRC Investment Holdings Co. Investor’s Conference Investor’s Conference

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CONTENTS

1.Biotech Segment 2.Carbon Black Segment 3.Operating Results

01 Biotech Segment

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Arbitration

EUR royalty Filing date: 2019.05.30

2021 Week of 4/19

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1 2 3 4 5 6 7 Arbitrator Preliminary Information Post-Hearing Filing The Award Selection Exchange & Hearings Submissions Hearing Preparation 2021 Week of 3/15 US royalty Filing date: 2020.02.23

Original Intention

Experts estimate that 5,000 to 10,000 people have Pompe disease worldwide

Source: BioNews Services, LLC

02 Carbon Black Segment

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World Auto Sales 2019-2030

Global passenger vehicle sales (million untis) 100 75 50

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25 0

ICE EV EV maket share

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Global EV market share (%) 100% 75% 50%

25% 0%

2019 2020 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e Source: OICA, IHS Markit, Deloitte Insights

EV Tire Requirement

Rolling Resistance

ICE EV Car length 465 cm 469 cm Car width 180 cm 185 cm Car height 140 cm 140 cm Car weight 1,300 kg 1,600-1,900 kg Torque 18 kgm 40 kgm Wear Resistance

ICE Tire EV Tire Traction

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Source: U-Car

CSRC Carbon Black for EV Tires

Tread: LH10, LH12, LH30 Sidewall & Carcass: LH70

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LH Series CB designed for EV Tires

CSRC LH Series ASTM

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Rolling Resistance

Wear Resistance

70% 80% 90% 100% 110% 120%

Auto Market Recovered as Expected

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EU auto sales
US auto sales
Auto sales ('000 units) YoY change (%)
Auto sales ('000 units) YoY change (%)
60,000 20% 3,500 20%
10% 3,000
50,000
0%
2,500
0%
40,000
2,000
-10% -20%
1,500
30,000
-20%
1,000 -40%
20,000 -30% 500
10,000 -40% 0 -60%
20Q1 20Q2 20Q3 20Q4 21Q1 20Q1 20Q2 20Q3 20Q4 21Q1
Mainland China auto Sales
India auto sales
Auto sales ('000 units) YoY change (%) Auto sales ('000 units) YoY change (%)
7,000 120% 6,000 50%
6,000 80% 5,000 20%
5,000
4,000
40% -10%
4,000
3,000
3,000 0% -40%
2,000
2,000
-40% -70%
1,000 1,000
0 -80% 0 -100%
20Q1 20Q2 20Q3 20Q4 21Q1 20Q1 20Q2 20Q3 20Q4 21Q1
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Source: FADA, Trading Economics, CPCA, Statista

World Tire Production 2019-2030

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3,000 (million units)
2,500
2,000
+10%
-14%
1,500
1,000
500
0
2019 2020 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e
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Source: Notch

World CB Demand 2019-2030

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20,000 (000 MT)
15,000
+8%
-9%
10,000
5,000
0
2019 2020 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e
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Source: Notch

CSRC CB Utilization Rate

0% 10% 20% 30% 40% 50% 60% 70% 80%	65% 62% 27% 62% 71% 74%
	2019 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

CSRC CB Operating Results

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Revenue Gross Margin %
5,000 (NTD million) 30.0%
4,262
4,219
4,039 20.0%
3,891
4,000
3,456
3,253 12.0% 10.0%
3,128 14.7%
10.2%
2,846
3,000 6.9%
6.1%
4.0%
0.0%
1.4%
2.5%
2,000
1,594
-10.0%
-14.0%
1,000 -20.0%
19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1
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Harmony with Nature (1/2)

Steam produced from production

10%

40%

69%

90% 100%

60%

31%

TW Mainland India USA China Steam to power Steam for internal use & export

Residual from Petrochemical & Steel Industry 700k mt Power 150 GWh Carbon black CO2 emission 390k mt = 32k tons of coal* Steam 2m mt

Note: 2020 figures

*Carbon emission coefficient of electricity=0.509 kg CO2e/kwh, carbon emission coefficient of other bituminous coal=2.408 kg co2e/kg, according to R.O.C. Environmental Protection Administration

Harmony with Nature (2/2)

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CO2 525 mt = 1,417 mt Maanshan N330 oil consumption (mt) 79 mt (-2%) 4,000 2,000 0 Before After 2020.07 2020.07

R&D improvements Maanshan N234 oil consumption

(mt) 446 mt 14,000 7,000 0 Before After 2020.07 2020.07

446 mt (-3%) (mt) 4,000 2,000

Note: Oil volume saved = oil consumption/ton before improvement*CB production after improvement-oil consumption after improvement Carbon emission coefficient of coal tar oil=2.6985 ton CO2e/ton

Focus on High-Value Products (1/2)

Skin & Water Contact EU regulations: Low PAHs amount in rubber and plastic goods as PAHs are hazardous to skin and respiratory tract.

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Compliant to BfR Standards

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Focus on High-Value Products (2/2)

High Reinforcement CB Designed for: Engineering vehicle tire tread Heavy duty truck tire tread Sedan & light truck tire tread

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High-Value Products Sales Volume Increased Despite COVID-19 +10% y/y 2020 80%

20%

2019 16% 84%

High-value products % Others %

CSRC Product Development

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Low Rolling Non Tire Plastics Conductive Resistance Tire Rubber Ink & Coating

CSRC Product Development – Plastics

Plastic Goods

Targets : Engineered Plastics Plastic Film - Anti Static (Cables & Wires, IC Tray…)

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Smoother Surface & Better Pigmentation

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CSRC Product Development – Ink & Coating

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Ink & Coating: Cover Lens Ink

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Ink & Coating: 3D Printing

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Global Customers

Cultivate Relationships with Global Customers & Develop High-Value Products to Meet Future Demand

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Source: Tire World, CPCA, tyrereviews, CSRC Group

High Value Products Innovate and focus on high-value grades

Operation Management Improve production efficiency & reduce CO2

Global Accounts Cultivate relationships with global customers

Harmony with Nature Value natural resources & Reduce emissions

Promoting Circular Economy – Eco-friendly Carbon Black Eraser

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03 Operating Results

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Net Income by Segment & EPS

Net Income by Segment

EPS

Carbon Black Biotech Battery

NTD Million

NTD

1.20

1,589

-581

-272

1,337

-747

-160

300

-252

-74

361

125

-42

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0.75

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0.44

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-0.04

20Q1 21Q1

2020

20Q1

21Q1

2019

2020

2019

Financial Structure

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Current Ratio Debt Ratio (L/A)
2.6 44%
2.3
2.2
1.8 1.8 35%
34% 34%
33%
2017 2018 2019 2020 21Q1 2017 2018 2019 2020 21Q1
Interest Bearing Debt/Asset
Book Value/Share
32%
34.5
31.8 31.7
31.1 30.8
24%
22%
20%
19%
2017 2018 2019 2020 21Q1 2017 2018 2019 2020 21Q1
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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.

Thank You!

csrcir@csrcgroup.com