SUNKO — Investor Presentation 2021

Sep 15, 2021

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

15 Sep. 2021

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.

Company Profile

Product: Fine Chemicals, Agrochemicals, Polymer

Start up: Year 1974

Employees: 503 (as at 31 Aug 2021)

Capital: $1,889 millions Revenues: $2,752 millions for FY2020

Main Products

 Agrochemicals  Fine Chemicals  Polymer

Agrochemicals

 Bendiocarb

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

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

Fine Chemicals Curing Agent

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

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

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

 SPS

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

Polymer TPU、TPV

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

• URELON® TPU

• KUOTANE® TPU

• Elastoplas® TPV

• ETPU (Expanded TPU)

• ETPV (Expanded TPV)

Polymer-PU

 PU Adhesives  PU Glazing Agent  PU Matting Agent

Products Mix

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1st Half of 2021 1st Half of 2020
Clarifying
Clarifying
Agent
Others Agent
3%
4% Others
6%
6%
Curing Agent
Curing Agent
6%
9%
Reducing Antioxidant
Antioxidant Agent 35%
38% 7%
Reducing
Agent
9%
Agrochemicals
17%
Agrochemicals
15%
Polymer
Non-halogenated Non-halogenated 10%
Polymer
Flame Retardant Flame Retardant
16%
4% 15%
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In Thousands of TWD
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
Others, 89,478
Clarifying Agent, 63,061
Curing Agent, 89,705
Reducing Agent, 101,790
1st Half of 2020
Agrochemicals, 249,444
Non-halogenated Flame Retardant, 221,226
Polymer, 153,148
Antioxidant, 531,253
0 100,000 200,000 300,000 400,000 500,000 600,000
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Statement of Comprehensive Income

In Thousands of TWD or Otherwise stated

		1st Half of 2021	1st Half of 2020	YOY Variance
	Revenues	1,413,132	1,499,105	-5.73%
	Cost of Goods Sold	(1,369,078)	(1,375,343)
	Gross Margin	44,054	123,762	-64.40%
	Margin %	3.12%	8.26%
	Operating Expenses	(112,659)	(273,139)
	Operating Loss	(68,605)	(149,377)
	Non-operating Profit	47,491	725,925
	E(L)BT	(21,114)	576,548
	Income (Loss) After Tax	(25,098)	597,435
	EPS (in Dollar)	(0.14)	2.73

Con Reveneus, Operating Income & Earnings after Tax

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4,000,000
3,408,905 3,451,774
3,500,000
3,243,968
3,000,000
2,752,601
2,500,000
2,000,000
1,413,132
1,500,000
1,000,000
524,306
110,020
500,000
69,069 14,714 17,323
0
-36,391 -6,877 -68,605 -25,098
-
243,755
(500,000)
Ist Half of
FY2017 FY2018 FY2019 FY2020
FY2021
Revenues 3,408,905 3,451,774 3,243,968 2,752,601 1,413,132
Operating Income 110,020 -36,391 17,323 -243,755 -68,605
Earnings after Tax 69,069 14,714 -6,877 524,306 -25,098
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Basic EPS & Dividends Policy

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3
2.43
2.5
2
1.5
1
0.5 0.32
0.07
-0.03
-0.14
0
-0.5
1st Half of
FY2017 FY2018 FY2019 FY2020
FY2021
EPS 0.32 0.07 -0.03 2.43 -0.14
Dividends/share 0.2 0 0 0.5
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Forward Looking

Hair Dye-

 Drug Registration - In-Progress.

Eco-friendly Polymer Appliances - ETPU、ETPV、TPR

• ETPU: Cooperation with I brand.

• ETPV outsole: Certification from M brand is in progress.

• TPR counter: Certification from A brand is in progress.

Forward Looking

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

Non-halogenated Flame Retardant

• In process of pilot run verification.

• Regular utilization in Dajia Plant from Q4 of 2021 .

• OEM of PX202.

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 PX202:

• Flame retardant additives in various plastics (PC, ABS, PPE, EPOXY, PA)

• Eco-friendly additive in EVA as fireproof material.

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

Thank You! Q & A Corp. Website： www.sunko.com.tw