TTC — Call Transcript 2020

May 29, 2020

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台聚關係企業
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Taita Chemical Co., Ltd

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Tianjin FAC
2020 Investor Teleconference
Head Office
2020 05 29
Tou Fen FAC
Chien Chen FAC
Zhong Shan FAC
Lin Yuan FAC
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台聚關係企業

Taita Chemical Co., Ltd 2020 Investor Teleconference

Agenda Reported by Company Briefing T M Yen 2019 Market Review T M Yen 2020 Market Outlook T M Yen Finance Information Tony Lin Q & A Paul Wu

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Company Briefing

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台聚關係企業
Head Office
Taipei
Tianjin FAC (Est. 2005 09 )
Tianjin
Cubic FAC (Est. 1987 06)
 EPS Cap: 140,000 MTA Glasswool FAC (Est. 1991 03)
Production suspended since 2019/4/20
Zhong Shan FAC (Est. 2000 05) Tou Fen
Chien Chen
 Cubic Printing Cap: 200,000 JIG/Y
Zhong Shan Lin Yuan  Glass-wool Cap: 10,000 MTA
Lin Yuan FAC ( Est. 1979 08) Chien Chen FAC (Est. 1960 04)
 EPS Cap: 180,000 MTA
Taita’s Major Products
. ABS/SAN
. GPS/IPS
. EPS
 EPS Cap: 60,000 MTA
. GW/Cubic ABS/SAN Cap: 125,000 MTA  GPS/IPS Cap: 100,000 MTA 3
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台聚關係企業

Taita Chemical Co., Ltd 2020 Investor Teleconference 2019 Market Review

 Overall  Feedstock  Performance

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2019 Review – Overall

台聚關係企業

Impact Market Demand

• 2019 05 13: US increased additional tariff from 10% to 25% on $200 billion of imports from China. This impacted on aircon, refrigerator, vacuum cleaner, TV and suitcase industries.

• 2019 08 01: Trump twitter that 10% of additional tax on the rest $300 billion of imports from China .

• will be imposed effective Sep 1[st] Impact will be on one time use dinnerware, toy and baby carriage .

• 2019 08 23 : Trumph announced another 5% of additional tariff on $200 and 300 billion of imports from China .

• 2019 10 11: US announced to delay the increase of additional tax (from 25% to 30% that would affect on aircon, refrigerator, vacuum cleaner, TV and suitcase industries) scheduled to effect on 10/15.

• 2020 01 15: US and China signed the Economic and Trade Agreement. Trade war showed sign of easing.

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2019 Review – Feedstock
台聚關係企業
Impact
SM Price
market
9,320
9,030
1,088
1,066
8,320
RMB
1,004
Q1 Q2 7,140
856.5
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Source : PLATTS

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2019 Review - Performance

台聚關係企業

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Sales Q’ty Earning per Share
2019 vs 2018
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2019 vs 2018 unit: MT EPS ABS/SAN + 8% GPS + 5% Taiwan - 1% EPS Zhong Shan + 3% GW + 2% CUBIC - 36%

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2019 Review – Performance

台聚關係企業

Sales vs SM + Products Inventory (Taiwan + China)

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Integrated
Unit: MT Supply Chain
Management
37,560
29,812
23,817
11,054
Sales SM + Products Products SM
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2019 Review - Performance 2016 ~ 2019 Production & Sales Q’ty

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430,000 unit: MT
423,144
420,000
410,000
405,424
400,000
399,015
390,000
380,000
370,000 368,074
360,000
2016 2017 2018 2019
Total Sales Total Production總產量 總銷量
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台聚關係企業

Taita Chemical Co., Ltd 2020 Investor Teleconference 2020 Market outlook

 Overall  Industry  Feedstock  Performance

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2020 Market Outlook – Overall

台聚關係企業

• Impact Market

• • 2020/1/23: Wu-Han city lockdown due to Covid-19.

• • Mid of Feb: Large-scale infection in a Church in Daegu, S. Korea。 US-China

• • 2 nd half of Feb: New cases in Italy and Iran continue to rise.

• • 2/26: First case in Brazil. 4/3 find in all S. American countries.Trade

• 3/4 : In Italy and then spread gradually to all Europe.

War?

• 3/10: Confirm over 1,000 cases in the US. In late April, more than 800,000 people were diagnosed.

• 2[nd] half of May: Over 5 million confirmed around the world.

One Helmet One Belt Policy

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2020 Market Outlook – Industry

台聚關係企業

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Competition
From
Competitors
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SM
suppliers’
bargaining
power
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SM New Supply

Increase spot purchase Customer ’ bargaining power Industry ABS/PS/EPS new capacity Threats from new

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Market Outlook – Industry (China)

台聚關係企業

Unit: x 10,000 MT

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New Capacity
ABS GPS EPS SM
Current
421 354 638 1,055
Ca acit
p y (1)
2020 10 10 62 312
New (2)
Capacity
2021 40 62 80 555
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(1): ICIS report (2): Grand-Energy & Chisage Marketing Dept.

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2020 Outlook – Industry Operation Rate

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台聚關係企業
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ABS
Jan Feb Mar
TTC China 2020 China 2019
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PS
14 days of annual
maintenance
Jan Feb Mar
TTC China 2020 China 2019
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EPS - Chien Chen
Jan Feb Mar
TTC China 2020 China 2019
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EPS – Zhong Shan
Jan Feb Mar
TTC_ZS China 2020 China 2019
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Source: ICIS

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2020 Outlook – Feedstock

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台聚關係企業
SM Price
948.5
7,300
RMB
6,440
China 62.7
18.27
511.5
4,250
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62.7
18.27
-37.63
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Source: CME/BARCHART
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Source: PLATTS

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2020 Outlook – Performance

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台聚關係企業
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Exert【S】
Overcome【W】
S & W O & T
Master【O】
Remove【T】
Maximize Optimize
Production/Sales Production/Sales
Best Inventory Management
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2020 Outlook - Management

台聚關係企業

Sales vs SM + Products Inventory (Taiwan + China)

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Unit: MT
Zhong Shan Plant 38,486
affected by Covid-19
24,738
Integrated
Supply Chain
23,810
Management
12,570
Sale sSales Pr SM + Products oducts SM Products SM SM + Products
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2020 Outlook - Performance

台聚關係企業

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Sales Q’ty Earning per share
2020 Q1
vs
2019 Q1
unit: MT
ABS/SAN -26%
GPS -2%
Taiwan -5%
EPS
Zhong
-36%
Shan
GW 10%
CUBIC -21%
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2020 Outlook - Performance

台聚關係企業

*** Tianjin production is suspended to minimize the negative performance**

Amount Year (NTD Million) 2020 Q1 -11 2019 -155 2018 -100 2017 -94

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台聚關係企業

Taita Chemical Co., Ltd 2020 Investor Teleconference

Finance Information ＊Consolidated I/S ＊Sales by Product ＊Financial Ratio Analysis

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Consolidated Statements of Income

台聚關係企業

(In millions of NTD, except per share data)

		2020Q1	2019Q1	YoY%	2019	2018	2017
	Sales Volume(MT)	80,183	110,148	**(27%) **	430,340	433,401	414,678
	Sales Cost ofgoods sold	2,958 2,643	4,600 4,207	(36%) (37%)	17,672 16,426	21,684 20,640	19,821 18,387
	Gross profit grossprofit ratio	315 11%	393 9%	(20%)	1,246 7%	1,044 5%	1,434 7%
	Operating expenses	158	183	(14%)	731	766	758
	Operating income operating income ratio	157 5%	210 5%	(25%)	515 3%	278 1%	676 3%
	Non-operating income(loss)	30	40	(25%)	43	53	2
	Income before income taxes	187	250	(25%)	558	331	678
	Income taxes	42	55	(24%)	160	123	176
	Net income net income ratio	145 5%	195 4%	(26%)	398 2%	208 1%	502 3%
	Earnings per share(NTD)	0.43	0.58	(26%)	1.19	0.62	1.50

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台聚關係企業

Sales by Product – 2020 Q1

In millions of NTD

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台聚關係企業

Financial Ratio Analysis (Consolidated Statement)

		2019	2018
	Operating income margin(%)	2.91	1.28
	Net income margin(%)	2.25	0.96
	Debt ratio(%)	46.28	54.26
	Current ratio(%)	210.71	162.56
	Quick ratio(%)	172.37	125.07
	Accounts receivable turnover days	53	49
	Inventory turnover days	21	21

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台聚關係企業

Taita Chemical Co., Ltd 2020 Investor Teleconference

Disclaimer This presentation includes the Company’s current information and any Development or adjustments there of will be published according to laws, Regulations or rulings. The Company is not obligated to update or revise This presentation. The information in this presentation is not for investment advices.

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台聚關係企業
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Taita Chemical Co., Ltd

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Tianjin
Q & A
Head Office
Tou Fen
Chien Chen
Zhong Shan
Lin Yuan
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