SUNKO — Interim / Quarterly Report 2016

Aug 24, 2016

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. SUNKO INK CO., LTD

Investor Conference Aug 25, 2016

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Index

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1.Company Profile

2.Merger with Kuo Ching Chemical 3.Main Products 4.Financial Highlights 5.Q&A

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1.Com an Profile p y

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Founded in 1974, Sunko began its operation as a manufacturer of inks and paints. Over the past 40 years, Sunko has diversified its businesses and become a leader in polyurethane and plastic additives. On March 30, 2016, Sunko merged with Kuo Ching Chemical, a company with similar product lines, to broaden Sunko’s product profolio and to strenghten its market position. Capital: 2,223 Million NT Dollars Chairman: Mr. Timothy HUANG Company Locations: Taichung headquarter, 5 Manufacturing Sites and 1 R&D Center Total Employees: 591 (end of July 2016)

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SUNKO
Ping Zhen plant
-Agrochemicals
-Fine Chemicals
-Clarifying agent
Da Jia plant
-Flame Retardant
R&D Center
Dali plant
-Elastomer (TPU)
-Fine Chemicals
Nangang plant
-Fine Chemicals
Head Office -Elastomer(TPV)
-Electronic Chemicals
ChuanHsin plan
(cGMP)
-UV Absorbers
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Core Values

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Develop niche know-how to manufacture top quality products whilst achieving good cost efficiency

Fullfill customer requests and commit to customer satisfaction Build up long-term strategic alliance with business partners and maintain a sustainable growth Be a responsible player in the industry

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Innovation Is the Key to Our Success

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New applications
New process New structures
New formulations
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2. Merger with Kuo Ching Chemical

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1+1=?

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The rowth of a com an is like blowin a bubble g p y g

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Bubble ma Bubble ma burst if it ex burst if rows too bi ands too fast or too bi and too y y g p g g fast

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Combining two bubbles together is a quick wa to make a bi er bubble y gg

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Product Profolio - Before Merger

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Polymer additives Polymer

Polymer additives Polymer UV Absorber Agrochemicals Polymer

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Product Profolio - After Merger

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Polymer additives Polymer

UV absorber Agrochemicals Polymer

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- How to Make a Long lasting, Bigger Bubble?

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Adding “new ingredients” to the bubble recipe makes the bubble bigger and stronger

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Further Growth with New Products

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Polymer additives Polymer

UV absorber Agrochemicals New products Polymer

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1+1 Goes to Infinit y

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3. Main Products

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Agrochemicals Fine Chemicals Polymer UV Absorbers

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Agrochemicals

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Bendiocarb Formetanate

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Methomyl Paraquat Propoxur

Carbaryl Carbofuran Carbosulfan

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Fine Chemicals -Non-halo enated Flame Retardant g

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KFR-DOPO KFR-DOPO-HQ

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Fine Chemicals -Curin A ent g g

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K-Cure 339 (Zinc diacrylate)

K-Cure 439 (Zinc dimethacrylate)

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Fine Chemicals -Reducin A ent g g

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K-Mars 110 (Dimethylamine Borane)

K-Mars 120 ( Morpholine Borane)

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Fine Chemicals -Antioxidant

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K-NOX® 168 (Irganox 168)

K-NOX® 230 (Irganox 1330) K-NOX® 148 (Irganox 3114)

K-NOX® L57 (Irganox 5057) K-NOX® 1520 (Irganox 1520)

Prevents thermal oxidative degradation of plastics and rubbers

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K-NOX® 1726 (Irganox 1726)

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Pol mer-PU Based Surface Treatin A ent y g g

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PU Adhesives PU Glaze Agent PU Matting Agent

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Pol mer-TPU y

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Kuotane TPU Polyester type & polyether type Kuotane-FR Flame retarded grade

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Kuotane HMVT High moisture vapor transmittence grade

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Pol mer-TPV y

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®

ELASTOPLAS Elastoplas® molding/extrusion compounds are a family of thermoplastic elastomers categorized in the “plastic” industry as TPVs are unique products in that they provide the performance attributes of thermoset rubber with the processing ease of thermoplastics.

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The thermoplastic characteristics of the Elastoplas[®] products permit the use of sprue and runner regrind at fairly high loadings with minimal loss in physical properties. In addition, TPVs are known for good weather resistence and chemical resistence which make them ideal alternatives to PVC.

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UV Absorbers

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Oxybenzone Octocrylene Avobenzone

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4. Statement of Comprehensive Income

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	TWD in ’000	TWD in ’000	TWD in ’000
	Jan to Jun, 2016	Jan to Jun, 2015 (Restated)	Difference
Net Sales	1,939,187	2,077,532	-138,345
GrossProfit	386,572	286,856	99,716
%	20%	14%	6%
Operating Expenses p g	198,068	199,901	-1,833
Revenues & Expenses	6,656	0	6,656
Operating Profit	195,160	86,955	108,205
Net Profit After Tax	194,651	104,751	89,900
Net Profit	181,452	94,127	87,325
Basic EPS(NT$)	0.74	0.34	0.40

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4. Consolidated Balance Sheet Highlights

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	TWD in ’000	TWD in ’000	TWD in ’000	TWD in ’000
	2016.6.30	%	2015.6.30 (Restated)	%
Current Assets	2,337,478	56%	2,398,923	57%
Non-current Assets	1,830,312	44%	1,825,959	43%
Total Assets	4,167,790	100%	4,224,882	100%
Current Liability	931,262	22%	1,212,037	29%
Non-current Liability	889,732	21%	917,200	22%
Total equity ~~Total Liabilities &~~	2,346,796	56%	2,095,645	50%
Equity	4,167,790	100%	4,224,882	100%

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Com an Philoso h p y p y

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Sustainable Growth Friendship Fun

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5. Q&A

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THANK YOU