SUNKO — Investor Presentation 2020

Oct 23, 2020

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SUNKO INK CO., LTD [Index: 1721] Investor Conference

23 Oct. 2020

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Disclaimer

The information in this presentation and the contents under discussion are based on existing information, in which we stated with regard to financial and relevant information may include some of Company’s forward-looking statements. Such statements involved may be easily affected by significant risks and uncertainties which lead to the different consequence from those statements.

The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise. The purpose of the contents as presented is for information circulation only, not for investment proposal.

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Company Profile

Product: Fine Chemicals, Agrochemicals, Polymer Start up: Year 1974 Employees: 533 (as at 30 Sep 2020) Capital: $2,241 millions Revenues: $3,244 millions for FY2019

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Main Products

◆Agrochemicals ◆Fine Chemicals ◆Polymer

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Agrochemicals

• Bendiocarb

◆ Formetanate ◆ Methomyl ◆ Carbaryl ◆ Carbofuran ◆ Carbosulfan

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Fine Chemicals Antioxidant

Prevents thermal oxidative degradation of plastics and rubbers.

◆ K-NOX 168 ◆ K-NOX 148 ◆ K-NOX 230 ◆ K-NOX 57

◆ K-NOX 1520 ◆ K-NOX 1726

• K-NOX 565

• K-NOX 412S

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Fine Chemicals Curing Agent

A raw material for golf ball core. ◆ K-CURE 339

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Fine Chemicals Reducing Agent

In Black Oxide process, DMAB prevents“pink ring”defects in later-stage acid treatment by reducing CuO layer to Cu2O, while enhancing the resin bondin of surface texture. g

◆ K-MARS 110

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Fine Chemicals Clarifying Agent

An additive to polypropylene (PP), Clarifying Agent can increase transparency and rigidity of polypropylene roducts. p

• K-CLEAR 34

• K-CLEAR 34i

• K-CLEAR 34N1

• K-CLEAR 40

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Polymer TPU、TPV

Application : Footwear、Textile、Adhesive Construction Materials、Car Materials Plastics rocessin . p g

• URELON® TPU

• KUOTANE® TPU

• Elastoplas® TPV

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Polymer-PU

• PU Adhesives

• PU Glazing Agent

• ◆ PU Matting Agent

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Products Mix

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1st Half of 2020 1 [st] Half of 2019
Clarifying Agent Clarifying Agent
Others
4% 3%
Others
6%
6%
Curing Agent
Curing Agent
7%
6%
Antioxidant
Reducing Agent Antioxidant
Reducing Agent
35%
7% 38%
7%
Agrochemical
Agrochemicals
s
17%
14%
Non-
halogenated
Polymer Flame
10% Polymer
Non-halogenated Flame Retardant Retardant
14%
15%
11%
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1st Half of 2020

1st Half of 2019

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In Thousands of TWD
Others, 89,478
Clarifying Agent, 63,061
Curing Agent, 89,705
Reducing Agent, 101,790
Agrochemicals, 249,444
Non-halogenated Flame
Retardant, 221,226
Polymer, 153,148
Antioxidant, 531,253
Others, 99,003
Clarifying Agent, 43,046
Curing Agent, 109,364
Reducing Agent, 119,219
Agrochemicals, 231,284
Non-halogenated Flame
Retardant, 180,291
Polymer, 221,369
Antioxidant, 623,263
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000
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Statement of Comprehensive Income

In Thousands of TWD or Otherwise stated

	1st Half of 2020	1st Half of 2019	YOY Variance
Revenues	1,499,105	1,626,839	-7.85%
Cost of Goods Sold	(1,375,343)	(1,478,535)
Gross Margin	123,762	148,304	-16.55%
Margin %	8.26%	9.12%
Operating Expenses	(273,139)	(130,542)
Operating Profit (Loss)	(149,377)	17,762
Non-operating Profit	725,925	1,238
EBT	576,548	19,000
Income After Tax	597,435	15,725
EPS (in Dollar)	2.73	0.07

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Con Reveneus, Operating Income & Earnings after Tax

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4,000,000
3,451,774
3,408,905
3,500,000
3,243,968
3,000,000
2,500,000
2,000,000
1,499,105
1,500,000
1,000,000
597,435
500,000
110,020 69,069
14,714 17,323
0
-36,391 -6,877
-149,377
(500,000)
FY2017 FY2018 FY2019 Ist Half of FY2020
Revenues 3,408,905 3,451,774 3,243,968 1,499,105
Operating Income 110,020 -36,391 17,323 -149,377
Earnings after Tax 69,069 14,714 -6,877 597,435
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Basic EPS & Dividends Policy

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3
2.75
2.5
2
1.5
1
0.5 0.32
0.07
-0.03
0
-0.5
FY2017 FY2018 FY2019 1st Half of FY2020
EPS 0.32 0.07 -0.03 2.75
Dividends/share 0.2 0 0
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Hair Dye

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In Development

Environmentally Friendly Polymer Appliances - ETPU、EPTV

Resin -grafted with Chlorine /and (or) Maleic anhydride

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• ➢ Primer(Pigmented or conductive) to PP-bumper or car parts.

• ➢ Vehicles

• ➢ Vehicles for gravure printing ink, hot-stamping ink and UV ink to Polyolefins

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Thank You!

Q & A

Our Website：www.sunko.com.tw