HYC — Investor Presentation 2019

Dec 20, 2019

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HSIN YUNG CHIEN CO., LTD. Investor Conference 2019.12.20 ： Speaker Stella

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Outline

1- Company Profile 2- Rubber Products

3- Company Performance

4- Introduction of NEWsheet 5- Q&A

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Com an Profile p y

Hsin Yung Chien was established in 1964 in Nantou, Taiwan. Currently HYC is the biggest manufacturer in producing rubber conveyor belts in Taiwan and keeps on developing new equipment and renewing production procedure. HYC also has passed through ISO9001 and ISO14000 certificate and product lines include light and heavy-duty conveyor belts in wide range of application such as mining, steel, aviation, agriculture, logistics and pier automatic production line by "KING" brand in global market.

“NEWsheet", the high polymer product line is complete and the R & D team is with rich experience to meet customers' demand in full range quickly.

The traditional production mode and method is replaced by the latest process technology and automatic equipment to supply high valueadded services and excellent quality for market differentiation in global market.

Area ： 47,850 Square Meter, Belt Factory (I & II &IV) Industrial Fabric & high polymer products (FactoryIII )

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Adds ： NO.294 Nan kung 3RD Nan kung industrial Zone Nantou,Taiwan TEL:+886492263888 FAX:+886492263168

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Com an Histor p y y

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1978 1980 1985 1994 1995
1964
Take over by Certificated
Establishment Factory 5-year
current Certificated by ISO9001
In moved to Investment
chairman,
Taichung Nantou by CNS plan Promotion of
Mr. Lin
Kevlar belt
1996 2000 2002 2003 2004 2005
Company name
Awarded by EPBA,
4 [th] Session 2 [nd] Session Park Beautifying changed to Company stock 14th Session
Outstanding Rising Star Award Championship, Hsin Yung Chien. 1st Session pre-listing National Award
SME Award SME Golden Award Golden Rooting Award
2006 2007 2008 2010 2011 2012
Investing
Company stock Stock market listed
Finished 1 [st] factory Finished 4 [th] factory Industrial Steel Cord
listing in Taiwan
and and got Sustainable and
Automatic Storage Dipping fabric factory ISO 14001 Certificate. and got Excellence Award Rubber Dam
system built OHSAS 18001
Facilities
2015 2013
2009~2012 8 2014~2023 1 [st] Taiwan 1 [st] Backbone
enterprise
Mittelstand
key counseling
Award
object
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Factories

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3 [rd] Factory
Fabric Dipping /
NEWsheet
2 [nd] Factory
Rubber Conveyor
Belt / Rubber
Products
4 [th] Factory
1 [st] Factory
Rubber Conveyor
Rubber Conveyor
Belt / Rubber
Belt / Rubber
Products
Products
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Factor Environment y

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Rubber Products

Product	Application
Flat Conveyor Belt Steel Cord Conveyor Belt	Quarry, Cement plant, Power plant, Steel Plant.
Patterned Belt Logistics Belt Chevron Belt	Logistics, Electronics, Textile, Animals, Agriculture, Inclined transportation.
Heat resistant, Oil resistant, Flame resistant, Impact resistant, Rip-stop Conveyor Belt	Fertilizer, High-temperature environment, Coal Mining, Sharp materials.
Rubber Dam、Wave Sheet	Water resource, Recycle, Environmental beautification, Park.，Wave Power

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A lication - Coal Minin pp g

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A lication - uarr pp Q y

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Application - Industries

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Application – Agriculture / Logistics

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Application – Animals / Dam

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畜牧 水壩
騎
術
訓
練
場
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Rubber Dam

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Rubber Dam Facilities: Max. producible width can reach 12-meters wide with unlimited length, producing products like Rubber Dam ， or Rubber Flooring. Wave Sheet for Power

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Financial Performance

	2013	2014	2015	2016	2017	2018	2019.Q3
Net Sales	1,818,853	2,155,189	1,832,109	1,561,379	1,633,863	1,843,877	1,236,975
Gross Profit	623,805	727,740	643,033	597,962	579,888	640,327	441,810
Gross Profit Ratio	34%	34%	35%	38%	35%	35%	36%
Operating Income	480,219	561,495	481,687	455,299	444,512	483,578	328,889
Non-operating Income& Expenses	29,586	39,835	35,487	(25,904)	(36,132)	3,352	43,042
Income Before Tax	509,805	601,330	517,174	429,395	408,380	486,930	371,931
Net Income	436,713	495,510	418,219	350,227	338,923	394,842	296,659
EPS	7.11	7.34	6.20	5.19	5.02	5.85	4.18(註)

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Remark: The surplus was converted into capital increase in August 2019 and the weighted average number of outstanding shares was 70,902.

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Sales Trend

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2,500,000
2,226,529
2,155,189
1,965,601
2,000,000 1,843,877
1,818,853 1,832,109
1,778,636
1,633,863
1,561,379
1,500,000
1,236,975
1,000,000
500,000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019.Q3
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Income Before Tax

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700,000
601,330
600,000
516,492 517,174
509,805
486,930
500,000
429,395
408,380
391,758
400,000 371,931
300,515
300,000
200,000
100,000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019.Q3
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Dividend

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8 EPS
元 7.46
7.34
7.11
分派-現金
7
6.2
6.06
5.85 分派-股票
6
5.19
5 5 5 5 5 5.02 5 5
5 4.64
4
4
3
3
2
1
1
0.5
0 0 0 0 0 0 0
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
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NEWsheet

Main Products :

1. Eco-friendly hot-press cushion pad (Awarded Gold Medal by 63[rd] International Invention Exhibition in Nuremberg, Germany in 2011.

2. NEWsheet Serial Products

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1.Hot-press cushion pad

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KEY CONSUMABLES FOR FUTURE

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1.Hot-press cushion pad

With 50-year experience of production and rubber development technology, we have developed this stable, manageable, and recyclable cushion pad.

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20
trees
1-ton Kraft paper To make 1-ton
can be replaced by 2 pcs of
Kraft paper
cushion pad
3000L
100
buckets
Patented by
M551128
M551122
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Hot-press cushion pad

The procedure of PCB pressing, which uses a lot of Kraft paper, will impact on :

 Factory Cleanliness  Bad Odor

 Waste of storage space for stock  Waste of materials transportation  Management

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1.Hot-press cushion pad

Advantages

• Sealing on both sides makes products firm, breathable, and moisture proof.

• Controlling times of pressing by QR code.

• 40% lighter than other manufactures’ products.

• Long-lasting lifetime (CCL-500 times, PCB-300 times)  Flexible but strong.

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• Automatic

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Thermoplastic Carbon Composite Material Product

With the rise of environmental protection issues, both the EU and advanced countries have planned with waste reduction and value creation goals for circular economy. Therefore, the characteristics of waste reduction and recyclability have become important considerations when developing new materials and new products. Thermoplastic carbon fiber composite products have excellent characteristics such as light weight, toughness, good processing and environmental protection and recyclability, which can meet the requirements of circular economy. 。

The global composite material market demand ratio and amount (AVK statistics to 11/2018), the share of resin-based composite materials is about 16.48 billion US dollars.

Global composite materials market demand ratio and amount

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， According to AVK analysis of German the global thermoplastic carbon fiber composite material market has reached 4.75 billion US dollars in 2018 (28.8%).

the global thermoplastic composites market share forecast will reach 41.9 billion US dollars in 2022 by Markets and Markets analysis.

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New Material for Next Generation

The features of thermoplastic composites are light, thin, tough, good processing, durability and environmental protection from materials to livelihood supplies and based on environmentally friendly re-use and recycling to crate the continuous chain circulation system which is the future goal of Newsheet.

• －

• ◎ 5+N Driven by industry demand Automation, Energy Saving and Recycling Economy

• －

• ◎ Lightweight and High Strength Replace metal or plastic

• －

• ◎ Appearance. Color and Unique Pattern Focus on appearance

• －

• ◎ Large Number for Require With plastic injection process (cost)

• －

• ◎ Plastic processing bottleneck Big Size. High rigidity. Process Yield and Capacity

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Thermoplastic Carbon Composite Material Product

Long Fiber Reinforced Thermoplastic Composite Material including: PPS+CF / PP+CF / PP+GF .

Features of Material:

1. Recycling long carbon fiber material 2. Heat resistant up to 320 Celsius 3. Repeat manufacturing available

2. High strength to replace metal

3. Lightweight in different shapes

4. Available for industry usage.

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Thermoplastic Composite Product-Luggage

Features of Thermoplastic Luggage:

- Light Breakthrough innovation for material structure , Light extremely - Beauty A variety of materials blended weaving, creating the ever-changing colors and patterns - Strength Special composite material design, weather-resistant, drop-resistant and scratch- resistant - Durability Excellent impact resistance , rebound quickly and maintain the complete

appearance complete

- Environmental Protection Thermoplastic composite material can be recycled to reduce the pollution.

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Thermoplastic Composite Product-Luggage

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Ja anese News a er on Se 14[th] & 15[th] p p p p

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Aeroflex Light Luggage

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ULTRA+STRING Media AD

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Thank you for listening 

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