TEX YEAR — Investor Presentation 2021

Sep 27, 2021

德淵企業 4720

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Tex Year Industries Inc. Stock Code 4720 2021 Investor Conference

Reporter: Donald Hsiao (Chairman & CEO) September 28[th] , 2021

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Disclaimer

• The information contained in the document, other than number and data of financial reports, has not been audited or reviewed by any accountant or any independent third party. TY does not ensure the fairness, completeness and accuracy of the information.

• This document may contain forward-looking statements, including but not limited to statements that address activities, events or developments that TY expects or anticipates to occur in the future. All statements are based on TY plans and best knowledge toward the future while subject to various factors and uncertainties beyond TY’s control. Therefore, the actual results may differ materially from those contained in the forward-looking statements.

• This document does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments.

• This material must not be copied, reproduced, distributed or passed to others at any time, in whole or in part, without the prior written consent of TY.

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Company Profile Tex Year Industries Inc.

Stock Code ： 4720

Established Date ： June 28, 1976

Date of Listed Company From TPEx to TWSE ： June 24, 2015

Founder ： Shih-Kuang Lue、Chin-Tsung Hsiao Chairman & CEO ： Donald Hsiao Capital ： NTD $ 979,179 thousands

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Address ： No.9, Wuquan 6th Rd., New Taipei Industrial Park, New Taipei City 24889,Taiwan (R.O.C.)

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Global Deployment

6 研發中心R&D Centers 9 生產工廠Factories 90+ 行銷分布國家Distributing Over 90 Countries

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SHANGHAI MD HONG KONG
C&M GMP
TAIWAN
HEADQUARTERS
TAIWAN VIETNAM INDIA POLAND GUANGZHOU WUXI JIANGSU
TAOYUAN FACTORY
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Jan.-Aug., 2021 Consolidated Sales- By Month

NTD thousand

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2021 2020
350,000
300,000 277,210
264,198
250,000
200,000
150,000 Sales in Aug. increased NTD 13,012 thousand compared
with the same period of last year, growing by 5%.
100,000
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
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Jan.-Aug., 2021 Consolidated Sales-By Product

NTD thousand

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其他產品 特用化學品 熱熔膠
Accu. Sales Increased NTD 338,105 thousand, growing by 17%
2,500,000
2,291,076
2,115,647
1,952,971 12%
2,000,000 7%
13% 12% 14%
12%
1,500,000
1,000,000
80% 74%
76%
500,000
-
2019 1-8 2020 1-8 2021 1-8
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Jan.-Aug., 2021 Consolidated Sales- By Region

NTD thousand

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1,400,000
↑ 33%
1,243,713
1,200,000
1,000,000 935,991
2020年
800,000 ↑12% 2021年
577,759
600,000 517,757
↑8%
400,000
177,358 163,587 192,770 207,346
200,000 129,095 98,671
0
美洲 亞洲 大陸 歐洲 其他地區
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Jan.-Aug., 2021 Consolidated Profit -By Product

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2020 2021
Other Product
Other Product 16%
20%
Special Chemicals
Special Chemicals Hot Melt Adhesive Hot Melt Adhesive
24%
14%
66% 60%
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Specialty Chemical Applications

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Jan.-Jun., 2021 Accumulated Consolidated Profit And Loss

NTD thousand except for EPS

Item	2020/1-6	2021/1-6	Like-for-like Growth Rate
Consolidated Sales	1,379,607	1,693,455	23%
Operating Profit	32,697	21,908	-33%
Profit attributable to owners of parent	5,801	8,694	50%
EPS	0.07	0.09	29%
Reviewed by Deloitte

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Our ESG Commitments And Actions

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ESG: Environmental, Social and Corporate Governance

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Green Procurement

Corporate Governance Protecting Shareholder Rights and Interests and Treating Shareholders Equitably Enhancing Board Composition and

Employee Care Free health check & Recreational activities for employees

Providing non- SVHC materials banned by REACH; complying with EU RoHS

Operation

6[th] TAIWAN Increasing Information Transparency Provide anti-epidemic insurance Putting Corporate Social Responsibility into MITTELSTAND AWARD

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Social Responsibilities 2021

Blood donation jointly held by TEX YEAR Social Welfare Promotional Association & New Taipei Industrial Park;132bags of blood donated

HQ

Responsibility】 2020 Declaration of Devotion

Practice

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Compostable Certification Expected to obtain in December

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Bio-Based Certification BIO DIN (50-85% 、 >85%) BIO DIN (20-50%) 20%-50% Expected to obtain at the end of September

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International Certificate

ISO 9001、ISO 14001 ISO 45001、ISO 50001 ISO 13485

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Green Building Tex Year Jiangsu Plant 2-star Green Building Label

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Green Product

China Environmental Label Certificate of China Environmental Products

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Our Greenhouse Gas Inventory & Carbon Footprint Management Plan

Tex Year declares the environmental sustainability goal in climate change and . actively strengthens Energy-Saving and Carbon Reduction

Sustainability Development Trends in Global Green Economy

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CSR & ESG
Energy
Green trade Carbon Footprint Management
Supply chain requirements Greenhouse gas Carbon Label
EHS detection Promote upgrade
Environmental Management Carbon Footprint
Quality Greenhouse
Management Management Plan
Management Inventory System Period
Development Path
Standard
ISO Internal
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83% of the water sources are contaminated by plastic pollution. Even 每人每週平均吃下? the sea turtles cannot distinguish their foods from plastic bags.

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Global Production Capacities Of Bioplastics

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Global Bioplastics Market

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TEX YEAR & Green Economy

HMA Din Certco Certification Leading Manufacturer

Alkaline water - de labeling - Green Adhesive Technology Global Exclusivity

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Bio-Economy Solutions

Bio-Based Hot Melt Adhesives

20%-50% Expected to obtain at the end of September

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Bio Degradable & Compostable

** Expected to obtain in December **

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Bio Degradable + Bio-Based

Our Mission

Tex Year has always been concerned about the global green issues for more than 40 years, and always takes environmental protection as the primary consideration. At the same time, from our own point of view, we solve the problem of glue for our products and create a good living environment together.

Adhesive Applications

Diapers / Hygiene /Food And Beverage Packaging/ DIY Consumer Adhesive / Mattress & Furniture

Other Applications

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First in Asia Germany Din Certco Certified

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Glue Stick

Strengths and Features Improve resource cycling Carbon footprint reduction Working toward zero-emissions

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產品開發表 Biobased Hot Melt Adhesive Project Development Chart

Features

Advantages

Benefits

1. Sourced from natural .

plants

1. Properties are fully reproducible for general petrochemicals.

2. Lower energy consumption than petroleum plastics for raw material generation, low CO e value. 2

3. Recycled low-carbon materials can reduce global resource depletion 。

and climate warming

1. The carbon footprint of biomass plastics is about 1/2 that of petroleumbased plastics.

2. It helps factories to reduce carbon emissions and increase future tender opportunities.

Biobased hot melt glues have a technical threshold of >50%.

P.S. Regulations vary from country to country, but there is a trend to prioritize low-carbon labeled products in future national labeling programs. Consumers will be encouraged to purchase low-carbon labeled products with corresponding policies. 📢 Latest Status: Available in mass production Copyrights reserved by

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Biodegradable/Compostable Certification ​Hot Melt 產品開發表 Project Development ChartAdhesive Features Advantages dvantages Benefits

Advantages dvantages

1. Biodegradable & Compostable

2. Complies with ASTM D6400 heavy metal test.

3. Can pass toxicity test. (Toxic growth test)

4. It can be decomposed into CO2+H2O by microorganism in sufficient oxygen and humidity environment.

5. High safety, no heavy metal added.

6. The waste can be composted, which reduces energy consumption compared to incineration.

7. The CO2 produced by composting can be used by plants to form photosynthesis, creating a carbon cycle economy.

8. No heavy metal added , other toxic substances are not produced during incineration.

1. Biodegradable HMA, due to the polymer changes its existing physical properties change significantly with it. Highly difficult to design formulas, especially in hot melt pressure sensitive products.

2. Undergoing Compostable Certification, and in the process of testing with the world's leading manufacturers. Copyrights reserved by

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Circular Economy Solutions

Alkaline water de-labeling HMA

PET bottles/plastic bottles are automatically delabeled after recycling, and the bottles can be collected automatically and enter the Recycle regeneration cycle.

1

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2

Adhesive and to disassemble easy HMA

Because of the nature of the adhesive, electronic parts can be easily disassembled at the end and enter the Recycle cycle.

Innofusion™ compatible 3 with PP non-woven

These materials, such as mattresses and glue, are recycled together, eliminating the need for time-consuming separation processes.

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Alkaline Water Delabeling Product Features, 產品開發表 Project Development ChartAdvantages And Benefits

Features

Advantages

Benefits

1. The viscosity can be reduced rapidly in alkaline water.

2. Automatic de-labeling in alkaline water.

3. Non solvent base

4. Easy recycling

5. Simple operations

6. Environmental

7. 100% solid content

8. High adhesion strength

9. Not easy to warp

10. The best choice of labels for recyclable bottles.

to HDPE.

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Latest Status:
可回收
International customers are nearing
completion of validation!
生物處理
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Latest Status: 📢

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產品開發表 Adhesive And Easy To Disassemble HMA Project Development Chart Features Advantages dvantages Benefits

Advantages dvantages Benefits

1. 100% Solid Content

2. Outstanding thermal stability。

3. Excellent adhesion performance for glass and industrial plastic materials.

4. High cohesion and ductility.

5. No solvents, low organic volatile substances.

6. Less carbons under permanent heating.

7. Excellent performance and ductility, so it is suitable for curved surface lamination.

8. High cohesion, suitable for heavyduty applications.

9. Low odor, low volatile matter, good processing environment.

10. Excellent thermal stability also reduces the number of care cycles by about 1/4.

11. It can make electronic products easy to disassemble and enter the circular economy.

📢 [Latest Status: ][International customers have been adopting. ]

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產品開發表 Innofusion Homogeneous Hot Melt Adhesive Project Development Chart

Features

Advantages

Benefits

1. MPO based HMA Compared to EVA, it has low density & good thermal stability.

2. Same material as the object being applied.

3. Reduce the consumption of hot melt adhesive.

4. Excellent thermal stability with low VOC and low odor.

5. Low odor, good processing environment.

6. The adhesive is same with the material being applied, which can promote . recycling

7. Latest Status:

8. 📢

International customers have been adopting.

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Low Carbon Economy Solutions

A low-carbon economy allows greenhouse gas levels in the atmosphere to stabilize at an

appropriate level, avoiding drastic climate change and reducing the chance that severe weather will cause harm to humans.

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Hot melt glue and water glue instead of solvent glue

Hot melt and water glue are more environmental friendly UV glue can realize "second" production

Dramatically increase the automation capacity, low energy consumption, realize the electronic factory lights off factory, energy saving and low carbon

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Green Economy Solutions

Completely solvent-free adhesives

• UV adhesive instead of adhesive tape release paper & solvent adhesive

• 於充分氧氣、濕 Completely solvent-free adhesives 度下可被微生物 Hot melt glue, water-based glue instead of solvent glue 分解為

• VOC microvolatile hot melt adhesive is more environmental friendly

。 CO +H O 2 2

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Low
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Snap Pack

Exclusive low odor

• Substitute package material and reduce package material cost

HMA, SGA solder glue

• Reduce Garbage

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Halogen-free flame-resistant hot melt adhesive Reduced environmental impact

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Electronic Grade UV Hardened Pressure Sensitive 產品開發表 Project Development ChartAdhesive Features Advantages dvantages Benefits

Advantages dvantages

1. Reduce VOC emissions.

2. 100% solids.

3. Contribute to Industry 4.0, which is expected to achieve no manual factory.

4. . Increase production rates 3. Cures on heat sensitive substrates.

5. UV fast curing.

6. Low temperature application.

7. High temperature and chemical stability.

   1. Can replace adhesive tape for narrow edge and thin edge application.

8. Higher heat and water resistance.

9. Liquid adhesive.

10. Suitable for automated

11. Automatic dispensing, no shape limitation.

dispensing processes.

• 📢 [Latest Status: ][International customers have been adopting. ]

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產品開發表 Electronic Grade UV Hardening Masking Adhesive Project Development Chart

Features

Advantages

Benefits

1. 100% solids.

2. UV fast curing.

3. Masking gel.

4. Good reworkability.

5. Liquid adhesive.

6. Reduces VOC emissions.

7. Fast UV curing.

8. Dark UV adhesive with shading function.

9. Reduce the waste of defective product repair.

10. Contribute to Industry 4.0, which is expected to achieve no manual factory.

11. Can replace adhesive tape for narrow edge and thin edge application.

12. Suitable for automated dispensing process.

13. Automatic dispensing, no shape limitation.

📢 [Latest Status: ][International customers have been adopting. ]

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- free Flame-Resistant Hot Melt Adhesive For 4720 ~~產品開發表~~ Halogen Project Development ChartElectrical Appliances

Features

Advantages

Benefits

1. Good flame retardant effect.

2. Good heat resistance.

3. No heavy metals and high concern substances.

4. No halogen added.

5. High volumetric

6. impedance coefficient, high

7. High dielectric constant.

8. UL 94 V-0 certified.

9. Can meet customers' high temperature requirements.

10. Comply with RoHS 2.0 and REACH requirements.

11. Environmentally friendly products, in line with future environmental trends.

12. Excellent electrical characteristics.

13. Fireproof, high safety. 2. Meets the requirements for electrical appliances.

14. Harmless to human body. 4. Healthy & environmental friendly.

15. Good insulating property. 6. Can be used with various hole diameter glue guns.

16. 📢 Latest Status: International customers have been adopting.

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產品開發表 - Water Based Pressure Sensitive Adhesive WBPSA Project Development Chart

4720

Features

Advantages

Benefits

1. Water-based system, solvent-free.

2. Low volatile organic substances.

3. Flexible functional design.

4. Safe and environmental friendly low carbon products.

5. High speed production.

6. Wide range of application.

7. Friendly to process operators and the environment.

8. Reduces operating costs.

9. Covers a wide range of durable and temporary fixing applications.

📢 [Latest Status:][ Available in mass production]

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Multinational Advanced Advanced R&D Customized Research R&D Capability Equipment Layout Green Product International Professionals Portfolio Certification

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Q&A
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We Bond to Your Needs!

Website LinkedIn WeChat

© 2020 TEX YEAR INDUSTRIES INC.

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