CST — Investor Presentation 2018

Aug 17, 2018

正新橡膠工業股份有限公司 CHENG SHIN RUBBER IND. CO., LTD.

法人說明會 Investor Conference

==> picture [203 x 52] intentionally omitted <==

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

We Deliver Performance [TM]
August 20, 2018
----- End of picture text -----

==> picture [8 x 12] intentionally omitted <==

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

0
----- End of picture text -----

==> picture [139 x 23] intentionally omitted <==

免責聲明

Safe Harbor Notice

==> picture [716 x 6] intentionally omitted <==

本簡報是建立於本公司從各項來源所取得之資訊。有些
資訊可能受未來不確定性因素影響，致使與原先本公司
對於未來前景的說明迥異。未來若有變更或調整時，請
以公開資訊觀測站公告資訊為依據。

This presentation is based on the information obtained from various sources which the Company believes to be reliable. But at some point in the future, there are a variety of factors which could cause actual results to differ materially from those statements. Therefore, please refer to the information on MOPS website as the main basis if any adjustment has been made. (http://mops.twse.com.tw)

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

1

We Deliver Performance[TM]

與會人員 Participants

==> picture [716 x 6] intentionally omitted <==

 廖正耀副總經理 Mr. Liao, Cheng Yao / Vice President  羅永勵協理 Mr. Lo, Yung Li / Assistant Vice President

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

2

We Deliver Performance[TM]

==> picture [716 x 6] intentionally omitted <==

==> picture [267 x 203] intentionally omitted <==

公司簡介 Company Introduction

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

3

We Deliver Performance[TM]

公司簡介 Company Introduction

==> picture [716 x 6] intentionally omitted <==

• 創立日期： 1967 年 1 月

Foundation ： Jan., 1967

• 上市日期： 1987 年 12 月 IPO ： Dec., 1987

• 營運總部：台灣彰化

• Headquarter ： Chunghwa, Taiwan

• 資本額：新台幣 324.14 億元

• Capital ： NT$32.414 billion

• 董事長：羅才仁

• Chairman ： Lo, Tsai-Jen

• 全球輪胎排名第九名

• Global top 9 of tire makers

==> picture [385 x 232] intentionally omitted <==

• 員工數：台灣 6,365 人；集團 30,621 人

Number of employees ： 6,365 (Taiwan) ； 30,621 (Global)

==> picture [223 x 105] intentionally omitted <==

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

資料基準日 (Base Date) ： 2018-06-30
----- End of picture text -----

==> picture [97 x 92] intentionally omitted <==

==> picture [103 x 97] intentionally omitted <==

==> picture [97 x 92] intentionally omitted <==

==> picture [98 x 92] intentionally omitted <==

==> picture [103 x 90] intentionally omitted <==

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

4

We Deliver Performance[TM]

全球生產基地 Production Plants

==> picture [716 x 6] intentionally omitted <==

==> picture [694 x 333] intentionally omitted <==

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

天津大豐 (CSTF)
中國正新 (CSTC)
重慶正新 (CSTS)
印度正新 (MRI)
台灣正新 (CST)
12 座
泰國正新 (MIT)
輪胎製造工廠
越南正新 (CSV) (12 Production Plants)
廈門正新 (XCS)
廈門海燕 (CSTP)
印尼正新 (PTM) 漳州正新 (CSTZ)
正新實業 (CSTE)
註 1: 台灣正新為營運總部
----- End of picture text -----

註 1: 台灣正新為營運總部 註 2 ：印尼和印度為新廠 Note ： CST is the Headquarter Note ： PTM and MRI are new plants

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

We Deliver Performance[TM]

5

集團生產配置 Production Configuration

==> picture [716 x 6] intentionally omitted <==

	台灣 正新 (CST)	廈門 正新 (XCS)	中國 正新 (CSTC)	廈門 海燕 (CSTP)	天津 大豐 (CSTF)	泰國 正新 (MIT)	正新 實業 (CSTE)	越南 正新 (CSV)	正新 重慶 (CSTS)	正新 漳州 (CSTZ)	印度 正新 (MRI)	印尼 正新 (PTM)
輻射層汽車外胎 (PCR)	◎	◎	◎			◎			◎
輻射層卡車外胎 (TBR)	◎		◎	◎		◎
機車外胎 (MC)	◎	◎			◎			◎		◎	◎	◎
自行車外胎 (BC)	◎	◎			◎					◎
內胎 (TUBE)	◎						◎	◎			◎	◎
其他 (OTHERS)	◎	◎			◎			◎		◎

資料基準日 (Base Date) ： 2018-06-30

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

6

We Deliver Performance[TM]

集團設備產能 Production Capacity

==> picture [716 x 6] intentionally omitted <==

==> picture [596 x 416] intentionally omitted <==

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

單位：千條 / 日
Unit ： thousand pcs / day
OTHERS ： 81
TBR ： 21
TUBE ： 544
PCR ： 185
Total ： 1,446
• TUBE
MC ： 258 • BC
• MC
• PCR
BC ： 357 • TBR
• OTHERS
資料基準日
----- End of picture text -----

• TUBE ：內胎 • BC ：自行車外胎 • MC ：機車外胎 • PCR ：輻射層汽車外胎 • TBR ：輻射層卡車外胎 • OTHERS ：其他

資料基準日 (Base Date) ： 2018-06-30

==> picture [190 x 35] intentionally omitted <==

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

We Deliver Performance [TM]
----- End of picture text -----

==> picture [139 x 23] intentionally omitted <==

==> picture [8 x 11] intentionally omitted <==

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

7
----- End of picture text -----

==> picture [716 x 6] intentionally omitted <==

==> picture [226 x 202] intentionally omitted <==

營運成果 Operating Results

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

8

We Deliver Performance[TM]

營運成果摘要 Operating Results

==> picture [716 x 6] intentionally omitted <==

單位：新台幣億元 Unit ： NT$ 100 million

營業收入 Net revenue TWD559 億 (-1.95%) 2017 H1 2017 H1 2017 H1 營業收入 營業成本 營業淨利 Net revenue Cost of good sold Operating profit TWD 570 億元 TWD 432 億元 TWD 53 億元

資料來源 : 正新橡膠合併財報

Source ： CSTG Financial Report We Deliver Performance[TM]

==> picture [139 x 23] intentionally omitted <==

合併綜合損益表摘要

Statements of Comprehensive Income Overview (Consolidated)

==> picture [716 x 6] intentionally omitted <==

單位：新台幣百萬元 Unit：NT$ million	2017H1 金額(Amount)	%	2018H1 金額(Amount)	%
營業收入(Net revenue)	57,010	100	55,896	100
營業成本(Cost of good sold)	(43,221)	(76)	(42,772)	(77)
營業毛利(Gross profit)	13,789	24	13,124	23
營業費用(Operating expenses)	(8,440)	(14)	(8,456)	(15)
營業淨利(Operating profit)	5,349	10	4,668	8
營業外淨支出 (Non-operating gains & losses)	(83)	-	(678)	(1)
稅前淨利(Income before tax)	5,266	10	3,990	7
本期淨利(Net Income)	3,685	7	2,611	4
稅後每股盈餘(元) (EPS；NT$)	1.12		0.80

==> picture [43 x 34] intentionally omitted <==

資料來源 : 正新橡膠合併財報 Source ： CSTG Financial Report We Deliver Performance[TM] 10

==> picture [139 x 23] intentionally omitted <==

合併資產負債表摘要 Balance Sheet Overview (Consolidated)

==> picture [716 x 6] intentionally omitted <==

單位：新台幣百萬元 Unit：NT$ million	2017H1 金額(Amount)	%	2018H1 金額(Amount)	%
現金及約當現金 (Cash and cash equivalents)	33,826	19	33,770	18
存貨 (Inventories)	17,701	10	19,445	11
不動產、廠房及設備 (Net property, plant and equipment)	103,615	58	105,221	57
資產總額 (Total assets)	179,549	100	184,318	100
流動負債 (Current liabilities)	57,864	32	50,722	28
長期借款&公司債 (Long-term debts & corporate bonds)	35,838	20	48,395	26
股東權益 (Total shareholder’s equity )	80,022	45	80,063	43
負債及股東權益總額 (Total liabilities and shareholder's equity)	179,549	100	184,318	100

資料來源：正新橡膠合併財報 Source ： CSTG Financial Report We Deliver Performance[TM] 11

==> picture [139 x 23] intentionally omitted <==

合併現金流量表摘要

Statement of Cash Flow Overview (Consolidated)

==> picture [716 x 6] intentionally omitted <==

單位：新台幣百萬元 Unit：NT$ million	2017H1 金額(Amount)	2018H1 金額(Amount)
營業活動之現金流入 (CASH FLOWS FORM OPERATING ACTIVITIES )	2,958	4,685
合併稅前淨利 (Net income before tax)	5,266	3,990
投資活動之現金流出 (CASH FLOWS FORM INVESTING ACTIVITIES)	(8,181)	(6,933)
取得不動產、廠房及設備 (Acquisitions of property, plant and equipment)	(8,317)	(7,114)
籌資活動之現金流入 (CASH FLOWS FROM FINANCING ACTIVITIES)	11,306	4,128
借款淨增加(減少) (Increase (decrease) in loans)	11,254	4,134
本期現金及約當現金增加數 (Increase in cash and cash equivalents)	4,932	2,852
期末現金及約當現金餘額 (Cash and cash equivalents at the end of year)	33,826	33,770

==> picture [43 x 34] intentionally omitted <==

資料來源：正新橡膠合併財報 (Source ： CSTG Financial Report)

==> picture [139 x 23] intentionally omitted <==

12

We Deliver Performance[TM]

合併營收 Revenues (Consolidated)

==> picture [716 x 6] intentionally omitted <==

單位：新台幣百萬元 Unit ： NT$ million

-1.95%

2017 年 H1 2018 年 H1

【營收差異 -1.95% 原因】 (Reasons of revenues decrease 1.95%) 同期比較 (YoY) ：  價格與匯率影響： 6.13% (Price & exchange rate effect ： 6.13%)  數量影響： -7.14% (Quantity effect ： -7.14%)  其他影響： -0.94% (Other effect ： -0.94%)

資料來源：正新橡膠合併財報

==> picture [43 x 34] intentionally omitted <==

Source ： CSTG Financial Report

==> picture [139 x 23] intentionally omitted <==

13

We Deliver Performance[TM]

各廠營收同期比較

YoY Revenues (Consolidated)

==> picture [716 x 6] intentionally omitted <==

單位：新台幣億元
Unit：NT$ 100 million	2017H1	2018H1

==> picture [710 x 271] intentionally omitted <==

資料來源 : 正新橡膠合併財報

==> picture [43 x 34] intentionally omitted <==

Source ： CSTG Financial Report

==> picture [139 x 23] intentionally omitted <==

14

We Deliver Performance[TM]

集團銷售分析 ( 依廠別 ) Revenues by Subsidiary

==> picture [716 x 6] intentionally omitted <==

單位：新台幣億元 Unit ： NT$ 100 million  2017H1  2018H1

==> picture [710 x 248] intentionally omitted <==

YoY ▲ 1.7% ▼ 0.7% ▲ 0.4% ▲ 1.1% ▼ 2.1% ▲ 0.1% ▲ 0.4% - ▼ 0.9%

==> picture [43 x 34] intentionally omitted <==

資料來源：正新橡膠合併財報 (2018 年 1-6 月 ) Source ： CSTG Financial Report (2018H1)

==> picture [139 x 23] intentionally omitted <==

15

We Deliver Performance[TM]

集團銷售分析 ( 依區域 ) Revenues by Region

==> picture [716 x 6] intentionally omitted <==

==> picture [693 x 372] intentionally omitted <==

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

單位：新台幣百萬元
Unit ： NT$ million 中國大陸
(China)
歐洲 56.6% ( ▲ 0.6%)
(Europe)
7.2% ( ▲ 1.4%) +0.1%
+22.8%
台灣 美洲
(Twain) (America)
5.9% ( ▲ 0.1%) 11.4% ( ▼ 0.2%)
+0.3%
-2.9%
-
中東 非洲 亞太
(M. East & Africa) (Asia Pacific)
4.0% ( ▼ 1.7%) 14.9% ( ▼ 0.2%)
-2.9%
-29.7%
----- End of picture text -----

資料來源 : 正新集團自結報表 (2018 年 1-6 月 )

==> picture [190 x 35] intentionally omitted <==

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

Source ：
We Deliver Performance [TM]
----- End of picture text -----

Source ： CSTG Non-audited Financial Report (2018H1)

==> picture [139 x 23] intentionally omitted <==

16

合併產品別銷售金額同期比較

YoY Revenues by Products (Consolidated)

==> picture [716 x 6] intentionally omitted <==

單位：營收金額佔比 Unit ： % of sales

==> picture [771 x 138] intentionally omitted <==

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

PCR TBR MC BC OTHER TUBE
41.2% ( ▼ 0.7%) 21.5% ( ▲ 2.5%) 11.2% ( ▼ 0.4%) 8.2% ( ▲ 0.4%) 11.7% ( ▼ 1.1%) 6.2% ( ▼ 0.6%)
----- End of picture text -----

==> picture [738 x 160] intentionally omitted <==

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

-2.9% +12.0% -4.4% +3.6% -9.4% -10.3%
註： 2017H1 ： 17 吋以上佔 PCR 比 26.1% ； 2018H1 ： 17 吋以上佔 PCR 比 28.8% 。
Note ： 2017H1 ： 17”↑tires is 26.1% of PCR sales ； 2018H1 ： 17”↑tires is 28.8% of PCR sales
----- End of picture text -----

資料來源 : 正新集團自結報表 (2018 年 1-6 月 )

==> picture [43 x 34] intentionally omitted <==

Source ： CSTG Non-audited Financial Report (2018H1) We Deliver Performance[TM]

==> picture [139 x 23] intentionally omitted <==

17

合併產品別銷售量同期比較 YoY Quantities by Products (Consolidated)

單位：百萬條 Unit ： million pcs

==> picture [771 x 286] intentionally omitted <==

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

PCR TBR MC BC OTHER TUBE
20.3 2.4 18.7 38.2 9.4 87.4
PCR,
-15.5% 40.9%
-0.4% -18.5%
-7.5% -20.7%
3.0%
107.3
----- End of picture text -----

註 1 ： 2018 年 1-6 月 17 吋以上輪胎銷售數量佔 PCR21.4% ； 2017 年 1-6 月則為 18.9% 。

Note1 ： 17” ↑tires is 21.4% of PCR quantities in 2018H1 ； 17”↑tires is 18.9% of PCR quantities in 2017H1.

資料來源 : 正新集團自結報表 (2018 年 1-6 月 )

==> picture [43 x 34] intentionally omitted <==

Source ： CSTG Non-audited Financial Report (2018H1) We Deliver Performance[TM]

18

==> picture [139 x 23] intentionally omitted <==

合併營業毛利率 Gross Profit Rate (Consolidated)

==> picture [716 x 6] intentionally omitted <==

【營業毛利率差異 - 0.71% 原因】 (Reasons of gross profit rate decrease 0.71%)

同期比較 (YoY) ：

 原料成本影響： -3.31% (Material cost effect ： -3.31%)

2017 年 H1 2018 年 H1

資料來源：正新橡膠合併財報

==> picture [43 x 34] intentionally omitted <==

Source ： CSTG Financial Report

==> picture [139 x 23] intentionally omitted <==

19

We Deliver Performance[TM]

原料成本 Material Cost

==> picture [716 x 6] intentionally omitted <==

單位：佔總原料成本百分比 Unit ： % of total material cost

生膠 人造膠 化學藥品 碳煙 尼龍簾布 鋼絲 & 鋼絲簾布 (Natural Rubber) (Synthetic Rubber) (Chemicals) (Carbon) (Nylon Cord Fabric) (Steel & Steel Cord Fabric)

==> picture [149 x 121] intentionally omitted <==

10% ( - )

11% ( - )

24% ( ▼ 6%) 22% ( ▼ 1%) 17% ( ▲ 2%) 16% ( ▲ 5%)

==> picture [130 x 119] intentionally omitted <==

==> picture [130 x 119] intentionally omitted <==

==> picture [130 x 119] intentionally omitted <==

==> picture [130 x 119] intentionally omitted <==

==> picture [131 x 119] intentionally omitted <==

==> picture [130 x 119] intentionally omitted <==

資料來源：正新集團自結報表 (2018 年 1-6 月 ) Source ： CSTG Non-audited Financial Report (2018H1)

==> picture [43 x 34] intentionally omitted <==

We Deliver Performance[TM]

==> picture [139 x 23] intentionally omitted <==

20

市場原料價格走勢 -2017~2018 年 6 月

Market Material Price Trend – 2017~2018.06

==> picture [716 x 6] intentionally omitted <==

單位 (Unit) ：

布蘭特 (Brant) ： USD/ 桶 BR0150 ： NTD/ 公斤泰國 RSS3 號膠： NTD/ 公斤 SBR1502 ： NTD/ 公斤 碳煙 CBN330 ： NTD/ 公斤

==> picture [726 x 271] intentionally omitted <==

資料來源： CIP 商品行情網 (http://cip.chinatimes.com/)

==> picture [43 x 34] intentionally omitted <==

Source ： http://cip.chinatimes.com/

==> picture [139 x 23] intentionally omitted <==

21

We Deliver Performance[TM]

合併營業淨利率 Operating Income Rate (Consolidated)

==> picture [716 x 6] intentionally omitted <==

• 【營業淨利率差異 - 1.03% 原因】 (Reasons of operating income rate decrease 1.03%)

• 同期比較 (YoY) ：  營業費用率影響： -0.32% (Operating expense rate effect ： -0.32%)

• 營業毛利率影響 -0.71% (Gross profit rate effect ： -0.71%)

2017 年 H1 2018 年 H1

資料來源：正新橡膠合併財報

==> picture [43 x 34] intentionally omitted <==

Source ： CSTG Financial Report

==> picture [139 x 23] intentionally omitted <==

22

We Deliver Performance[TM]

歸屬於母公司合併本期淨利率

Net Income Rate – Attributable to shareholders of the parent (Consolidated)

2017 年 H1 2018 年 H1

【本期淨利率差異 - 1.76% 原因】 (Reasons of net income rate decrease 1.76%) 同期比較 (YoY) ：  所得稅率影響： +0.31% (Income tax rate effect ： +0.31%)  業外淨支出率影響： -1.04% (Non-operating rate effect ： -1.04%)  營業費用率影響： -0.32% (Operating expense rate effect ： -0.32%)  營業毛利率影響： -0.71% (Gross profit rate effect ： -0.71%)

==> picture [43 x 34] intentionally omitted <==

資料來源：正新橡膠合併財報 Source ： CSTG Financial Report

==> picture [139 x 23] intentionally omitted <==

23

We Deliver Performance[TM]

合併每股淨利 EPS (Consolidated)

==> picture [716 x 6] intentionally omitted <==

單位：新台幣元 Unit ： NT$

==> picture [43 x 14] intentionally omitted <==

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

-29%
----- End of picture text -----

2018 年 H1

2017 年 H1

股本： 32.414 億股 Shares ： 3.2414 billion shares

資料來源：正新橡膠合併財報

==> picture [43 x 34] intentionally omitted <==

Source ： CSTG Financial Report

==> picture [139 x 23] intentionally omitted <==

24

We Deliver Performance[TM]

集團內外銷比率

Revenues by Domestic & Foreign Sales

==> picture [675 x 344] intentionally omitted <==

資料來源：正新集團自結報表 (2018 年 1-6 月 )

==> picture [43 x 34] intentionally omitted <==

Source ： CSTG Non-audited Financial Report (2018H1)

==> picture [139 x 23] intentionally omitted <==

25

We Deliver Performance[TM]

集團 OE/RE 比率

Revenues by OE & RE Customer

==> picture [716 x 6] intentionally omitted <==

 組車廠 (OE)

 經銷商 (RE)

資料來源：正新集團自結報表 (2018 年 1-6 月 )

Source ： CSTG Non-audited Financial Report (2018H1)

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

26

We Deliver Performance[TM]

2018 上半年營運摘要 2018 H1 Operating Overview

==> picture [716 x 6] intentionally omitted <==

單位：新台幣億元 Unit ： NT$100 million

==> picture [43 x 34] intentionally omitted <==

==> picture [696 x 385] intentionally omitted <==

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

Income
36.8 (25.1)
Others
Material Cost
(6.1) Tax
15.5 26.1
2
2017H1 (10.7) 2018H1
Net Profit Net Profit
[[TM]] 27
----- End of picture text -----

We Deliver Performance[[TM]]

==> picture [716 x 6] intentionally omitted <==

==> picture [227 x 202] intentionally omitted <==

瑪吉斯各項活動 MAXXIS Activities

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

28

We Deliver Performance[TM]

世界排球大賽 ( 昆山站 ) World Volleyball Games (Kunshan)

==> picture [716 x 6] intentionally omitted <==

==> picture [638 x 359] intentionally omitted <==

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

29

We Deliver Performance[TM]

2018 第七屆瑪吉斯太魯閣國際登山賽

2018 TAROKO International Hill Climb

==> picture [716 x 6] intentionally omitted <==

==> picture [43 x 34] intentionally omitted <==

==> picture [534 x 408] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

30

We Deliver Performance[TM]

各項賽事活動贊助 Sponsorship of Racing

==> picture [716 x 6] intentionally omitted <==

★ 瑪吉斯達卡隊 (Maxxis Dakar Team) 出征 2018 中南美達卡拉力賽

==> picture [43 x 34] intentionally omitted <==

==> picture [346 x 241] intentionally omitted <==

==> picture [184 x 107] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

31

We Deliver Performance[TM]

與德國電動車 e.GO 公司簽署合作協議 Maxxis signed a cooperation agreement with e.GO company

==> picture [716 x 6] intentionally omitted <==

==> picture [467 x 303] intentionally omitted <==

==> picture [278 x 181] intentionally omitted <==

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

32

We Deliver Performance[TM]

德國科隆發表最新旗艦級轎車胎 Publish the passenger car tire in Cologne, Germany

==> picture [716 x 6] intentionally omitted <==

==> picture [451 x 346] intentionally omitted <==

==> picture [238 x 307] intentionally omitted <==

==> picture [43 x 34] intentionally omitted <==

==> picture [139 x 23] intentionally omitted <==

33

We Deliver Performance[TM]

==> picture [377 x 417] intentionally omitted <==

再次感謝各位投資人蒞臨 及對本公司之支持與愛護 Thanks for coming and kindly appreciate your support.

公司網站： http://www.cst.com.tw/ CST website

==> picture [139 x 23] intentionally omitted <==

34

We Deliver Performance[TM]