SUNKO — Investor Presentation 2022

Sep 8, 2022

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

08 Sep. 2022

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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 different consequences 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, Synthetic Resin Start up: Year 1974 Employees: 513 (as at 31 Aug 2021)

Capital: $1,849 millions Revenues: $2,850 millions for FY2021

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Upstream

Supply Chain Briefing

Mid stream

Downstream

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Main Products

◆ Agrochemicals ◆ Fine Chemicals ◆ Polymer ◆ Synthetic Resin

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Agrochemicals

◆ Bendiocarb

◆ Formetanate ◆ Methomyl ◆ Carbaryl ◆ Carbofuran ◆ Carbosulfan ◆ Oxam l y

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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

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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 Non-halogenated Flame Retardant

Reaction with flame retardant, the epoxy resin has relatively high glass transition temperature, good flame retardancy, and thermal stability

• DOPO & derivatives

• Polyphosphazene Flame Retardant

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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

Applications : Footwear, Textile, Adhesive Construction Materials, Car Materials, Plastics Processing

◆ URELON® TPU ◆ KUOTANE® TPU ◆ Elastoplas® TPV ◆ ETPU (Expanded TPU) ◆ ETPV (Expanded TPV)

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Synthetic Resin

• PU Adhesives

• PU Glazing Agent

• ◆ PU Matting Agent

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Products Mix

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1st Half of 2022 1st Half of 2021
Clarifying Clarifying
Agent Agent
Others
4% Others 3%
6%
6%
Curing Agent
Curing Agent
8%
9%
Antioxidant
Reducing
Antioxidant 38%
Agent
8% 41% Reducing
Agent
9%
Agrochemicals
10%
Agrochemical
s
15%
Non-
Non-halogenated halogenated
Polymer Polymer
Flame Retardant Flame
10% 16%
13% Retardant
4%
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In Thousands of TWD
Others, 94,167
Clarifying Agent, 61,454
Curing Agent, 129,120
Reducing Agent, 137,435
1st Half of 2022
Agrochemicals, 168,152
Non-halogenated Flame
Retardant, 210,639
Polymer, 172,838
Antioxidant, 678,023
Others, 90,056
Clarifying Agent, 35,451
Curing Agent, 123,660
Reducing Agent, 133,410
1st Half of 2021
Agrochemicals, 205,701
Non-halogenated Flame
Retardant, 60,376
Polymer, 221,599
Antioxidant, 542,879
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
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Statement of Comprehensive Income

In Thousands of TWD or Otherwise stated

	1st Half of 2022	1st Half of 2021	YOY Variance
Revenues	1,651,828	1,413,132	16.89%
Cost of Goods Sold	(1,473,168)	(1,369,078)
Gross Margin	178,660	44,054	305.55%
Margin %	10.82%	3.12%
Operating Expenses	(119,072)	(112,659)	(5.69)%
Operating Income (Loss)	59,588	(68,605)
Non-operating Profit	31,739	47,491
E(L)BT	91,327	(21,114)
Income (Loss) After Tax	78,038	(25,098)
EPS (in Dollar)	0.42	(0.14)

Con Reveneus, Operating Income & Earnings after Tax

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4,000,000
3,451,774
3,500,000
3,243,968
3,000,000 2,850,638
2,752,601
2,500,000
2,000,000
1,651,828
1,500,000
1,000,000
524,306
500,000
78,038
14,714 17,323 59,588
0
-6,877
-70,016
-36,391 - -95,951
243,755
(500,000)
Ist Half of
FY2018 FY2019 FY2020 FY2021
FY2022
Revenues 3,451,774 3,243,968 2,752,601 2,850,638 1,651,828
Operating Income -36,391 17,323 -243,755 -95,951 59,588
Earnings after Tax 14,714 -6,877 524,306 -70,016 78,038
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Basic EPS & Dividends Policy

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3
2.43
2.5
2
1.5
1
0.42
0.5
0.07
-0.03
0
-0.38
-0.5
-1
1st Half of
FY2018 FY2019 FY2020 FY2021
FY2022
EPS 0.07 -0.03 2.43 -0.38 0.42
Dividends/share 0 0 0.5 0
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Forward Looking

Hair Dye-

◆ Drug Registration - In-Progress.

◆ Distributors discovery

Eco-friendly Polymer Appliances - ETPU、ETPV、TPR

◆ Co-develop with Brand Owners

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Forward Looking

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

Non-halogenated Flame Retardant

• Production in small batches

• New Item: Aromatic polyphosphate

A polypropylene with adherence and flexibility in major appliances for:

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

• ➢ Vehicles.

• Appliances of flame-retardant : ➢ Flame retardant additives in EPOXY on high-end electric devices.

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

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Forward Looking

TPU：Attenuation Material for PPE

• ➢ Characteristic：

Reduces the impact energy.

• ➢ Production method：

、 Melt blown & lamination Injetion foaming & molding.

• ➢ It has passed the EN1621-1 protection standard .

➢ ： Applications Person protective equipment(PPE) for 、 、 elbows knees shin. ➢ ： TPU advantage 、 、 avirulent non- Naturally factor 、 plasticizer recycle.

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Thank You!

Q & A Corp. Website： www.sunko.com.tw