TEX YEAR — Investor Presentation 2016

May 3, 2016

4720

==> picture [720 x 93] intentionally omitted <==

Stock Code：4720

Reporter ： Donald Hsiao General Manager

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

==> picture [31 x 31] intentionally omitted <==

Table of Contents

==> picture [333 x 9] intentionally omitted <==

一、Company introduction

二、Business accomplishments

==> picture [585 x 47] intentionally omitted <==

----- Start of picture text -----

三、Industrial analysis & product portfolio
----- End of picture text -----

四、Global expansion deployment

五、Growth Driver

2/33

Company Profile

Company Name: TEX YEAR INDUSTRIES INC. Established on: June 28, 1976 Listed to Taiwan Share Market：June 24, 2015 Founder：Shih-Kuang Lue、Chin-Tsung Hsiao Chairman of the Board：Chi Chen Lin General Manager: Hsiang Chih Hsiao Capital: NTD $810,767,090 Address: No.9, Wuquan 6th Rd.,New Taipei Industrial Park, New Taipei City 24889,Taiwan (R.O.C.) Number of Employees: 450 in the entire Group

3/33

Tex Year Vision

==> picture [290 x 10] intentionally omitted <==

==> picture [693 x 380] intentionally omitted <==

----- Start of picture text -----

Create
Link Gluing
Happy Life
dedicated people corporate integrity
----- End of picture text -----

4/33

Pictures

==> picture [311 x 273] intentionally omitted <==

==> picture [315 x 302] intentionally omitted <==

5/33

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

Business Philosophy

==> picture [608 x 166] intentionally omitted <==

6/33

==> picture [423 x 66] intentionally omitted <==

----- Start of picture text -----

Corporate Structure
----- End of picture text -----

==> picture [655 x 362] intentionally omitted <==

----- Start of picture text -----

TEX YEAR INDUSTRIES INC.
CONTROLLIN
COMPANY 100 ﹪ 100﹪ 50% 80% 80%
TEX YEAR INTERNATIONAL TEX YEAR H.K. TEX YEAR TEX YEAR TEX YEAR
(SAMOA) INDIA VIETNAM EUROPE
6.45 ﹪
93.55 ﹪
TEX YEAR CONTROLLIN
COMPANY
TECHNOLOGY
50 ﹪ 100 ﹪
WUXI MORE TEX GUANGZHOU TEX YEAR
100 ﹪
WUXI TEX YEAR
----- End of picture text -----

7/33

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

==> picture [31 x 31] intentionally omitted <==

Table of Contents

==> picture [333 x 9] intentionally omitted <==

一、Company introduction

二、Business accomplishments

==> picture [585 x 47] intentionally omitted <==

----- Start of picture text -----

三、Industrial analysis & product portfolio
----- End of picture text -----

四、Global expansion deployment

五、Growth Driver

8/33

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

Operating performance

Meas.:NT1,000

==> picture [597 x 369] intentionally omitted <==

----- Start of picture text -----

Net Income Sales revenue EPS
3,000,000 9% 6% 1.5
growth growth 2,452,263
2,310,902 1.3
2,500,000
2,126,619
1.24
1.1 1.1
2,000,000
0.9
1,500,000 0.68
0.7
1,000,000
0.5
500,000
0.3
82,711 100,439
50,886
- 0.1
2013 2014 2015
----- End of picture text -----

9/33

Sales revenue: the whole conglomerate HMA Non HMA glues Others

==> picture [653 x 355] intentionally omitted <==

----- Start of picture text -----

3,000,000 2,452,263 Meas.:NT1,000
2,310,902
2,126,619
2,500,000
162,999
134,222
357,287
124,944
2,000,000 337,019
339,315
1,500,000
1,931,977
1,000,000
1,662,360 1,839,661
500,000
0
2013
2014
2015
----- End of picture text -----

10/33

– Sales revenue in 2015 by region

Taiwan13% Others 8% Euro7% Asia without China , 19%

America 10%

China 43%

11/33

- Sales revenue in 2015 by product categories

HMA Non HMA glue others

==> picture [472 x 354] intentionally omitted <==

----- Start of picture text -----

Non HMA
Others
glues 7%
14%
HMA
79%
----- End of picture text -----

12/33

Profit comparison btw 2015 Q1 & 2016 Q1

Meas.:NT1,000

Items	2016Q1	2015Q1	Increase	growth rate
Sales revenue	581,186	561,482	19,704	4%
operatingincome	15,775	20,789	(5,014)	-24%
EBIT	21,452	20,987	465	2%

13/33

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

==> picture [31 x 31] intentionally omitted <==

Table of Contents

==> picture [333 x 9] intentionally omitted <==

一、Company introduction

二、Business accomplishments

==> picture [585 x 47] intentionally omitted <==

----- Start of picture text -----

三、Industrial analysis & product portfolio
----- End of picture text -----

四、Global expansion deployment

五、Growth Driver

14/33

4720

Wide in types of application and global market territories

Global HMA market in 2015: USD 40 billions , 5% growth rate Asia Pacific accounts for more than 30% : Forecast all the way to 2017 Global growth rate: 4.1% Asia Pacific’s growth rate: 7% Growth potential counts on China & India

15/33

4720

Wide in types of application and global market territories

ns Global HMA market in qty in 2015：1,760,000 to Asia pacific accounts for half

China’s HMA market in qty in 2015：750,000 tons with 13% growth rate

• 10% annaul growth rate is expected to be seen in China’s HMA market in 2017 Main industrial applications :

• 1. Paper, Board and Related Products 2. Transportation 3. Footwear and Leather 4. Consumer/DIY (Retail) 5. Building/Construction 6. Woodworking and Joinery

7. Assembly Operations/Other

16/33

4720

Members of alliances for ~~specialty chemicals~~

Conformal Coating

Specialty Material

Second Generation Adhesive Release Agent

Performance Adhesive

Vibration Equipment

17/33

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

Wide in types of application and global market territories

18/33

4720

Self production :HMA

Type

EVA Polyamide APAO Rubber PUR

Properties: Eco friendly, multiple basis, wide applications Traditional industries/ Applications: carton & box closing, packaging, book binding, wood working, lamination, cigarrets, shoes, handcrafts, Automobile, electronics, diaper, sanitary napkins ,tapes, filters, general assembly, and medical industry.

==> picture [197 x 194] intentionally omitted <==

==> picture [132 x 65] intentionally omitted <==

==> picture [120 x 89] intentionally omitted <==

19/33

Self production :HMA

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

Type

EVA

Polyamide APAO Rubber PUR

Hot Melt Adhesives Properties: Eco friendly, multiple basis, wide applications Emerging industries/ Applications:

1. Home appliances , car interior, white goods, RFID, special tapes, high end filters

2. s Baby and adult diapers, sanitary napkin

==> picture [151 x 119] intentionally omitted <==

==> picture [213 x 105] intentionally omitted <==

20/33

==> picture [216 x 31] intentionally omitted <==

----- Start of picture text -----

-
production
----- End of picture text -----

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

- specialty chemicals

Type SGA reaction styled glue Cyanoacrylate glue

the representative of industry Industries/Applications: HIFI speaker、elevator、stonemasonry, wood working, lamination, handcraft, electronic、golf club、general assembly

==> picture [273 x 217] intentionally omitted <==

==> picture [200 x 217] intentionally omitted <==

21/33

4720

- Self production specialty chemicals

==> picture [152 x 9] intentionally omitted <==

Epoxy Epoxy Type UV glue UV resin glue resin

Strength ：High bonding & efficiency, works with ultra light or heat curing reaction

application： optical glasses, electronic panel assembly, quick assembly for Electronic industry 、motor, electronic materials molding, pvc tile surface anti-scratching (hardcoat), outdoor good high/low temperature tolerance product

==> picture [226 x 177] intentionally omitted <==

==> picture [230 x 167] intentionally omitted <==

22/33

4720

Comparison

Hotmelt Adhesive	Hotmelt Adhesive	Solvent Base Adhesive	Solvent Base Adhesive
Feature	Benefit	Feature	Impact
100% Solid content	Eco-friendly	Non 100% Solid content	Contains volatile substance, flammable , not Eco-friendly
No volatile solvent, extremely low VOC	Non-hazardous to human and environments	Volatile solvent, not conformed to VOC rule	Hazardous to human and environments, toxic concern
Fast Curing, high efficiency	Optimize production process, save space, enhance productivity, save overall cost	Slow Curing, Low efficiency	Longer production process require oven baking, requires more space
100% environmental components, non hazardous	Confirmed with all environmental rules	Hazardous raw material	Toxic
Come in various formats, low transportation cost	Easy to transport and use, energy saving	Requires container, High transportation cost	Waste packaging and cost higher on transportation, not eco-friendly

~~23/33~~

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

==> picture [31 x 31] intentionally omitted <==

Table of Contents

==> picture [333 x 9] intentionally omitted <==

一、Company introduction

二、Business accomplishments

==> picture [585 x 47] intentionally omitted <==

----- Start of picture text -----

三、Industrial analysis & product portfolio
----- End of picture text -----

四、Global expansion deployment

五、Growth Driver

24/33

==> picture [491 x 53] intentionally omitted <==

----- Start of picture text -----

Global Allocation & Marketing
----- End of picture text -----

GTY(Guangzhou) WMT(Wuxi) WTY(Wuxi) Tex Year Hong Kong Increase Capacity Tex Year HQ Increase Capacity Tex Year India Tex Year Vietnam Increase Develop Capacity ASEAN market

==> picture [24 x 13] intentionally omitted <==

----- Start of picture text -----

25
----- End of picture text -----

25/33

Presence in China

4720

==> picture [337 x 9] intentionally omitted <==

大中華據點分布圖

9.陝西、重慶、四川

==> picture [136 x 79] intentionally omitted <==

==> picture [143 x 85] intentionally omitted <==

TY HQ Office R&D factory Home-Based

1.黑龍江、吉林、遼寧 2.北京、天津、河北 3.山西、濟南、鄭州 4.崑山、無錫、上海 5.合肥、武漢、南昌 6.浙江、長沙、福州 7.台北、台中、台南 8.深圳、廣州、中山、香港

10.雲南、貴州

26/33

==> picture [495 x 53] intentionally omitted <==

----- Start of picture text -----

Global Allocation & Marketing
----- End of picture text -----

GTY(Guangzhou) WMT(Wuxi) WTY(Wuxi) Tex Year Hong Kong

Tex Year India Increase Capacity

Increase Capacity Tex Year HQ Increase Capacity Tex Year Vietnam Develop ASEAN market

27/33

Global Allocation & Marketing

GTY(Guangzhou) WMT(Wuxi) Tex Year Europe WTY(Wuxi) Tex Year Hong Kong Pilot Run Increase Capacity Tex Year HQ Increase Capacity Tex Year India Tex Year Vietnam Increase Develop Capacity ASEAN market

28/33

4720

Rooted in Poland

 Developing from east to west Europe

==> picture [140 x 146] intentionally omitted <==

==> picture [46 x 75] intentionally omitted <==

==> picture [92 x 206] intentionally omitted <==

550 million population in radius 2,000 km area

250 million population in radius 1,000 km area

==> picture [228 x 128] intentionally omitted <==

==> picture [23 x 44] intentionally omitted <==

==> picture [11 x 15] intentionally omitted <==

==> picture [6 x 5] intentionally omitted <==

29/33

Global Allocation & Marketing

GTY(Guangzhou) WMT(Wuxi) Tex Year Europe WTY(Wuxi) Tex Year Hong Kong Pilot Run Increase Capacity Adhesive Technology Inc. (USA) Tex Year HQ Consumer Market Increase Capacity Tex Year India Tex Year Vietnam Increase Develop Capacity ASEAN market

30/33

==> picture [35 x 11] intentionally omitted <==

----- Start of picture text -----

4720
----- End of picture text -----

==> picture [31 x 31] intentionally omitted <==

Table of Contents

==> picture [333 x 9] intentionally omitted <==

一、Company introduction

二、Business accomplishments

==> picture [585 x 47] intentionally omitted <==

----- Start of picture text -----

三、Industrial analysis & product portfolio
----- End of picture text -----

四、Global expansion deployment

五、Growth Driver

31/33

4720

Growth Driver

==> picture [278 x 9] intentionally omitted <==

1. Trend of Greener & More Eco-Friendly

2. Stricter Regulations in Mainland China 3. Emerging Markets: ASEAN, India, E.E.

3. Synergy from Group Internationalization

4. Industry 4.0

5. New Product Development

6. Developing Global KAs

32/33

4720

==> picture [504 x 150] intentionally omitted <==

4720 【 】 Thank you for attention.

33/33