GS — Interim / Quarterly Report 2020

Nov 11, 2020

G-SHANK Enterprise Co., Ltd.

www.gs.com.tw 3Q2020 Earnings Conference Nov.12, 2020

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G-SHANK

Disclaimer

• This presentation is based on the information obtained from G-Shank Enterprise, included Business Forecasts, Development and Financial status. Please note that while the company has used its best efforts to make sure the accuracy and comprehensiveness of this presentation, all information shall be subject to the public financial information submitted to government authorities by the company. G-Shank is not responsible for the respective update changes or adjustments that might occur in the near future.

• This document may contain “forward-looking statements” and any nonhistorical information, including the company’s operating strategies, operating plans and future prospects, are forward-looking statements based on our assumptions about future operations and uncertain factors such as government regulations, economic changes, market trend... etc., so actual results may differ.

• This document shall not be considered as an inducement to buy or sell securities or other financial products.

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Agenda

About Operational Current Status G-SHANK Performance And Prospect 1 2 3

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About Operational Current Status G-SHANK Performance And Prospect 1 2 3

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G-SHANK

Who We Are? (TWSE: 2476)

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Capital: $1.85B (NTD)

Chairman: Yu-Huang Lin

CEO: Ying-Shou Lin

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2,595 (Worldwide) Employees 681 (TW)

Est. 1975

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Group Revenue Percentage

THE LARGEST COMPANY DEDICATED TO PRECISION STAMPINGS IN ASIA

(Transaction within the group)

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*3Q 2020

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G-SHANK

Where We Are?

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Tianjin
Suzhou
Qingdao
Wuhan
Shanghai
G-Long (Dongguan)
Shenzhen Japan G-SHANK AMERICA (TX)
(Tokyo)
G-Bao (Shenzhen)
Xiamen Mexico
World
Thailand Headquarters
(Taoyuan, Taiwan)
& Taiwan Bade Branch
Malaysia
Indonesia
Global
1 Headquarters
Service
14 Branch/ Factory
17 2 Office
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G-SHANK

How We Start?

1973

Stamping

Vertical Integration

Industrial &

2009 Electroplating Lines Est. 2010 Est. Insert-Molding Dept. 2012 Est. Japan Branch 2012 Est. Wuhan Branch 2012 Record High Die PO (209 sets/mo) 2012 Stamping, Electroplating, Insert-Molding, Automatic Assembly Vertical Integration 2018 Est. Automotive Market Div.

1973 Founded 1980 Est. Design Center 1984 Est. 6S Policy

1989 Est. Malaysia Branch 1994 Est. G-Shank Mexico & USA 1996 ISO 9001 Certified 1996 Est. Shanghai Branch 1998 Listed in Over-The-Counter

(The First Company in Metal Stamping Industry in TW) 1998 Est. Thailand & Taiwan Bade Branches

3C 57% 2000 2010 2019 Industrial & Others Automotive Industrial & Others Global Growth 16% 27% 10% Automotive 2000 Est. Shanghai II Branch 10% 2001 Listed in TWSE (2476) 2001 Est. Dongguan, Xiamen, Suzhou, Qingdao Branches 2002 Est. Indonesia Branch 3C 2003 Est. Tianjin Branch 80% 2005 ISO14001& ISO/TS16949 Certified 2006 Est. Shenzhen I Branch 2007 Est. Shenzhen II Branch

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G-SHANK

One Stop Solution

Stamping Insert-molding

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Die Design
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x110 sets (Monthly Capacity)

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x34 (35 -110T)

x686 (10 - 400T)

• 3D/CAD Design

• Servo Feeds

• AOI Machine Inspection

• • Vertical, Horizontal Insert-molding Machine

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• Design Database System
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• AOI Machine Inspection
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Automated Assembly

Machining Electroplating

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4 Machines

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x533

8 Lines(Hoop)

• Vertical CNC Machine • Sawing Machine

• R J 45 Connector

• Jig Grinder • E.D.M

Au (Gold) Sn (Tin)

• D-SUB Connector

• Profile Grinder • Drilling E.D.M

• Automatic Laser Welding Machine

• • Automatic Silver Brazing Assembly

• Wire E.D.M • Precision E.D.M

• Grinder • Horizontal Profile

• • Lathe Grinder

• Automotive Safety Device Assembly

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• Milling Machine
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G-SHANK

What We Do?

Automotive

• Regulators

• Transmission Coolers

• GPS/ USB/ Charger Connectors

• Airbag & Seat Belt Connectors • Air Conditioning

• Fuses

• Button Adaptors

• TPMS • Headlight Parts

• Anti-theft Systems

Industrial and Others

• Communications

• 2019: 9% Mobile Phones

• 2019: 16% 3Q2020: 8% •ADSL

• 3Q2020: 16% •Internet Related 2019: 15%

• 3Q2020: 17% PC/NB • I/O • Type C • USB • HDMI • FPC/ FFC • Memory Cards • Board-to-board

• Sensors

• Relays

• No Fuse Breakers/ Switches

• PLC

• Timers • Blood Sugar Testers

• Scalpels

• Semiconductor Lead Frames

• Furniture Parts

• Electronic Cigarettes

2019: 27% 3Q2020: 32%

2019: 33% 3Q2020: 27%

Consumer Electronics

• Appliances • Digital Cameras

• Gaming Parts

• Switches • Video Recorders

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*3Q 2020

About Operational Current Status G-SHANK Performance And Prospect 1 2 3

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G-SHANK

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Composite Income Sheets

(In Thousands of New Taiwan Dollars)

Items	Nine Months, 2020	Nine Months, 2019	Growth%
Sales revenue	3,443,930	3,706,745	-7.1%
Operating costs	(2,509,657)	(2,749,222)	-8.7%
Gross Profit	934,273	957,523	-2.4%
Gross Profit%	27.1%	25.8%	1.3ppts
Operating Expense	(591,693)	(656,428)	-9.9%
Net operating income	343,707	302,438	13.6%
Gains from Operations %	10.0%	8.2%	1.8ppts
Non-operating income and expenses	(24,409)	123,971	-119.7%
Revaluation Gains (Losses) on Financial Assets	(49,657)	36,551	-235.9%
Foreign exchange gain (loss)	(45,992)	22,878	-301.0%
Income before Tax	319,298	426,409	-25.1%
Tax expense (income)	(107,201)	(126,845)	-15.5%
Income tax %	33.6%	29.7%	3.9ppts
Profit (loss)	212,097	299,564	-29.2%
Profit (loss), attributable to owners of parent	164,029	267,144	-38.6%
Consolidated Net Income Attributable to Parent Company %	4.8%	7.2%	-2.4ppts
Basic earnings per share	0.89	1.44	-38.2%

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G-SHANK

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Balance Sheets

(In Thousands of New Taiwan Dollars)

Items	Amount % Amount % September 30, 2019 September 30, 2020
Cash & Marketable Securities	4,306,660 53.9% 3,786,959 49.3%
notes receivable and Accounts receivable,net	1,041,587 13.0% 1,218,295 15.8%
Current inventories	711,497 8.9% 763,211 9.9%
Long-term Investments	358,075 4.5% 321,058 4.2%
Property, Plant and Equipment	1,205,000 15.1% 1,245,986 16.2%
Right-of-use asset	157,819 2.0% 155,305 2.0%
Total Assets	7,988,256 100.0% 7,688,142 100.0%
Total Liabilities	2,898,165 36.3% 2,511,270 32.7%
Total equity attributable to owners of parent	4,514,185 56.5% 4,606,794 59.9%
Non-controlling interests	575,906 7.2% 570,078 7.4%
Total Equity	5,090,091 63.7% 5,176,872 67.3%
Book Value Per Share	24.4 24.9

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About Operational G-SHANK Performance 1 2

Current Status And Prospect 3

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Global Climate & Revenue

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G-Shank Revenue
2018~2019 2020
2010~2012 2013~
China-U.S. COVID-19
Digital equipment Internet popularization trade war
integration Transparent prices/Globalization
Jan. - Sep. 2020: Revenue
dropped around 7.1%
compared to the same period
of time in the previous year.
Revenue
Unit: NTD/100milion
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Reference: * G-Shank Financial Report * Jan. – Sep. 2020

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G-SHANK

COVID-19’s Impact on & Supply Chain Future Strategies

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Tianjin
Suzhou
Qingdao
Wuhan
Shanghai
G-Long (Dongguan)
Japan
Shenzhen G-SHANK AMERICA (TX)
(Tokyo)
G-Bao (Shenzhen)
Xiamen World Mexico
Headquarters
Thailand
(Taoyuan, Taiwan)
& Taiwan Bade Branch
Malaysia
Indonesia
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G-SHANK’s advantages

Headquarters Small Business Branch/ Factory Major Customer Office

• Worldwide market layout & Contact with international customers

• Integrating processes & Provide customers with the best solution

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G-SHANK

Supply Chain & Future Strategies

Supply Chain

Raw material supply

Copper, copper alloy, steel, stainless steel, aluminum, LCP, and etc.

Raw Material

Components manufacture

G-Shank Core Processes G-Shank’s core business is manufacturing and being flexible to allocate resources to integrate different processes based on the client’s needs. Progressive stamping, staged stamping, insert/injection molding, machining, reelto-reel electroplating, laser-engraving, and etc.

Other capabilities: die-casting, metal injection molding, surface treatment (Anodizing/painting/barrel plating/bracket plating/sand-blasting, & etc.)

Assembly

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Final Products
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Extended Core Processes

G-Shank Processes Integration

Automated assembly, semi-automated assembly, manual assembly

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G-SHANK

Post-pandemic Strategies

Clients' Needs

Lead Time G-Shank Management Integration Platform

Pricing Management Platform

• Focusing on the core business, integrating processes for the clients, extending core process capabilities

• Reducing lead time by reacting quickly based on the latest information

• Managing costs and increasing gross margin by constantly checking market prices (for raw material. components, etc.)

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Thank You

G-SHANK Enterprise