SUNRACE — Investor Presentation 2021

Sep 9, 2021

日馳企業 110 年法人說明會 September 09,2021 SunRace Sturmey-Archer 2021 Investor Conference

Disclaimer

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 This presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertain ties that could cause actual results to differentially from those unexpected or implied by such statements.

 Expect as required by law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or others.

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1

Basic Information

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• ： SUN RACE STURMEY-ARCHER INC .

• Company Name

：  Date of Incorporation May 26,1972

• ：

• Paid-in Capital Six hundred million (NTD)

：  Number of Employees About 200 people

2

Derailleur Group

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Shifter
Front
Derailleur
Freewheel
(Cassetter)
Hub
Rear
Derailleur
Front
Chain
Chainwheel
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3

Internal Gear Hub Group

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Shifter
Internal
Gear Hub
Dynamo
Hub
Front
Crankset
Chain
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4

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SUN RACE STURMEY-ARCHER INC. The proportion of business

Product Category 2021 Q1~Q2 2021 Q1 2020 Q1~Q2 Drivetrain Component 92.52% 92.87% 89.07% Brake Component 0.54% 0.98% 0.66% Spare Parts and Accessories 6.32% 5.36% 9.72% Others 0.62% 0.79% 0.55% 82% 84% 86% 88% 90% 92% 94% 96% 98% 100%
	92.52% 92.87% 89.07% 0.54% 0.98% 0.66% 6.32% 5.36% 9.72% 0.62% 0.79% 0.55%
	2021 Q1~Q2 2021 Q1 2020 Q1~Q2 Drivetrain Component Brake Component Spare Parts and Accessories Others

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SUN RACE STURMEY-ARCHER INC.

Concise Consolidated Statement of Comprehensive Income

	(In NT$ thousand, except EPS)	(In NT$ thousand, except EPS)	(In NT$ thousand, except EPS)	(In NT$ thousand, except EPS)	(In NT$ thousand, except EPS)
Period Item	Most Recent 5-Year Financial Information
	109	108	107	106	105
Operating revenue	1,246,649	1,133,401	1,270,718	1,339,712	954,821
Grossprofit(loss)from operations	281,274	273,230	326,546	366,108	258,697
Net operatingincome(loss)	132,264	111,575	137,701	214,731	122,252
Non-operatingincome and expenses	89,032	(6,648)	38,947	(49,118)	(16,971)
Profit(loss)from continuingoperations before tax	221,296	104,927	176,648	165,613	105,281
Profit(loss)from continuingoperations	178,317	80,119	136,076	135,664	89,920
Loss from discontinuingoperations	－	－	－	－	－
Net Profit(loss)	178,317	80,119	136,076	135,664	89,920
Other comprehensive income, net	666	(5,027)	(6,563)	(3,816)	(5,217)
Total comprehensive income	178,983	75,092	129,513	131,848	84,703
Profit(loss), attributable to owners ofparent	178,317	80,119	136,076	135,664	89,920
Profit(loss), attributable to non-controllinginterests	－	－	－	－	－
Comprehensive income, attributable to owners ofparent	178,983	75,092	129,513	131,848	84,703
Comprehensive income, attributable to non-controllinginterests	－	－	－	－	－
Basic earningsper share(NT$)	2.97	1.34	2.69	2.71	1.80

6

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SUN RACE STURMEY-ARCHER INC. Concise Balance Sheet Summary

(In NT$ thousand)	2Q21	1Q21	2Q20
Cash and cash equivalents	414,856	363,652	343,491
Bills receivable and accounts receivable	287,960	185,311	187,720
Inventories	799,317	703,228	504,376
Other current assets	152,617	59,814	52,634
Real estate, plant and equipment	537,369	545,527	498,912
Other non-current assets	85,705	82,407	88,290
Total assets	2,277,824	1,939,939	1,675,423
Short-term loans	85,824	92,842	125,000
Current contract liabilities	126,916	113,325	30,037
Payable bills and accounts	379,025	330,784	203,331
Other current liabilities	191,990	202,762	153,818
Long term loan	220,000	－	90,000
Other non-current liabilities	12,713	12,465	22,662
Total equity	1,261,356	1,187,761	1,050,575

Note: Sums may not equal totals due to rounding.

7

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SUN RACE STURMEY-ARCHER INC. Concise Consolidated Income Statement (Unaudited)

(In NT$ thousand, except EPS) Net Sales Operating costs Gross profit Selling expenses Administration expenses R&D expenses Operating expenses Operating income Net non-operating income Net income before income tax Income tax expense Net income EPS attributable to the parent(NT$)	2021 Q2 2021 Q1 2020 Q2 Q-Q Y-Y 484,406 342,419 277,095 41.47% 74.82% (345,076) (236,606) (235,469) 139,330 105,813 41,62631.68% 234.72% (14,286) (11,906) (7,768) (23,236) (22,798) (20,895) (5,582) (5,317) (5,722) (43,104) (40,021) (34,385) 96,226 65,792 7,241 46.26% 1,228.90% (2,497) 973 91,271 93,729 66,765 98,512 (18,622) (12,628) (19,279) 75,107 54,137 79,23338.74% (5.21%) 1.25 0.90 1.32

Note: Sums may not equal totals due to rounding.

8

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SUN RACE STURMEY-ARCHER INC.

Supplemental Information: Percentage of Revenue

	2021	2021	2020
	Q2	Q1	Q2
Gross profit	28.76%	30.90%	15.02%
Selling expenses	(2.95%)	(3.48%)	(2.80%)
Administration expenses	(4.80%)	(6.66%)	(7.54%)
R&D expenses	(1.15%)	(1.55%)	(2.06%)
Operating income	19.86%	19.21%	2.61%
Non-operating income	(0.52%)	0.28%	32.94%
Income tax expense	(3.84%)	(3.69%)	(6.96%)
Net income	15.50%	15.81%	28.59%

Note: Sums may not equal totals due to rounding.

9

Monthly Operating Income (NT$ thousand)

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August-21 Net operating income this month： 173,495 Net operating income for the previous month last year： 127,903 This month's revenue increase and decrease： 45,592 Percentage increase or decrease this month： 35.65 Net accumulated operating income for the year： 1,159,452 Net accumulated operating income last year： 761,891 This year's revenue increase and decrease： 397,561 Percentage increase or decrease this year： 52.18	August-21 Net operating income this month： 173,495 Net operating income for the previous month last year： 127,903 This month's revenue increase and decrease： 45,592 Percentage increase or decrease this month： 35.65 Net accumulated operating income for the year： 1,159,452 Net accumulated operating income last year： 761,891 This year's revenue increase and decrease： 397,561 Percentage increase or decrease this year： 52.18
Net operating income this month：	173,495
Net operating income for the previous month last year：	127,903
This month's revenue increase and decrease：	45,592
Percentage increase or decrease this month：	35.65
Net accumulated operating income for the year：	1,159,452
Net accumulated operating income last year：	761,891
This year's revenue increase and decrease：	397,561
Percentage increase or decrease this year：	52.18

10

Consolidated Revenue

(NT$ thousand)

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QoQ
YoY
41.47%
74.82%
600,000
500,000
484,406
400,000
300,000
342,419
277,095
200,000
100,000
0
2Q21 1Q21 2Q20
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11

Consolidated Gross Margin

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QoQ
YoY
(2.14pt)
13.74pt
35%
30.90%
28.76%
30%
25%
20%
15.02%
15%
2Q21 1Q21 2Q20
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12

Consolidated Operating Income (NT$ thousand)

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QoQ
YoY
46.26%
1,228.90%
120,000
96,226
100,000
65,792
80,000
60,000
40,000
7,241
20,000
0
2Q21 1Q21 2Q20
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13

Consolidated Operating Margin

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QoQ
0.65pt YoY
17.25pt
25%
19.86%
20%
19.21%
15%
10%
5%
2.61%
0%
2Q21 1Q21 2Q20
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14

Consolidated Net Income

(NT$ thousand)

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QoQ
38.74% YoY
(5.21%)
80,000
70,000
75,107 79,233
60,000
50,000 54,137
40,000
30,000
20,000
10,000
0
2Q21 1Q21 2Q20
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Consolidated Net Profit Margin

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QoQ
YoY
(0.31pt)
(13.09pt)
35%
30%
28.59%
25%
20%
15.50%
15%
15.81%
10%
5%
0%
2Q21 1Q21 2Q20
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16

Consolidated Earnings Per Share (NT$)

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QoQ
0.35 YoY
(0.07)
1.32
1.40
1.20
1.25
0.90
1.00
0.80
0.60
0.40
0.20
0.00
2Q21 1Q21 2Q20
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17

Q & A

18

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