TTC — Call Transcript 2023

May 16, 2023

==> picture [103 x 85] intentionally omitted <==

2023

==> picture [493 x 298] intentionally omitted <==

Taita Chemical Co., Ltd. Investor Teleconference

May 16, 2023

==> picture [100 x 59] intentionally omitted <==

台聚關係企業

Taita Chemical Co., Ltd 2023 Investor Teleconference

Agenda Host General Information T.M. Yen 2022 Review T.M. Yen 2023 Outlook T.M. Yen Finance Information Tony Lin Q & A Paul Wu

2

==> picture [100 x 59] intentionally omitted <==

台聚關係企業

2023 Investor Teleconference General Information

==> picture [751 x 402] intentionally omitted <==

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

Established April 6, 1960 ABS / SAN
NT$ 3.277 Billion
(2012)
GPS / IPS
Capital
NT$ 3.976 Billion Main
(2022) Products
NT$ 18.08 Billion EPS
(2022 Consolidated)
Revenue
NT$12.87 Billion GW
(2022 Individual)
----- End of picture text -----

3

==> picture [99 x 59] intentionally omitted <==

2023 Investor Teleconference General Information

Taipei headquarters Neihu Technology Park

台聚關係企業

==> picture [832 x 518] intentionally omitted <==

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

Tianjin plant (est. since Sept., 2005)
Tianjin plant
 EPS Capacity: 140K MTA
Production stopped since Apr. 20, 2019
Glasswool plant (est. since Mar., 1991)
Cubic plant (est. since Jun., 1987)
Zhong Shan plant (est. since May, 2000)
Tou Fen plant

• Zhangzhou Taita Chemical Co., LTD
(Est. since Jun. 28, 2021)  Glasswool Capacity: 10K MTA
 EPS Capacity: 180K MTA Chien Chen plant
 Cubic printing 200K JIG Annual
Lin Yuan plant Production stopped since Mar. 31, 2022
Zhong Shan plant
Chien Chen plant ( est. since Apr.,1960)
Lin Yuan plan ( est. since Aug., 1979)
 EPS Capacity 60K MTA
4
 ABS/SAN Capacity 120K MTA  GPS/IPS Capacity 100K MTA
----- End of picture text -----**

==> picture [100 x 59] intentionally omitted <==

台聚關係企業

2023 Investor Teleconference General Information

==> picture [699 x 440] intentionally omitted <==

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

Earning Per Share Dividend
(Cash
)
(Stock)
(Year (Year
) )
No. of Employees
700
643
650 639
626
600
550 546 528
500 507
488
450
400
2016 年 2017 年 2018 年 2019 年 2020 年 2021 年 2022 年 (Year)
----- End of picture text -----

5

==> picture [100 x 59] intentionally omitted <==

台聚關係企業

Taita Chemical Co., Ltd 2023 Investor Teleconference 2022 Business Review

 Overall

 Industry  Spread  Performance

6

==> picture [100 x 59] intentionally omitted <==

2022 Business Review-Overall

台聚關係企業

==> picture [258 x 209] intentionally omitted <==

Ukrainian-Russian War

==> picture [232 x 155] intentionally omitted <==

Impact on Market Demand

==> picture [608 x 177] intentionally omitted <==

7

==> picture [99 x 60] intentionally omitted <==

2022 Business Review-Industry (China)

Unit: 10KT ABS GPS EPS SM New capacity 145 84 105 299 in 2022 Total capacity 626 494 774 2,010 in 2022 Total demand 572 432 341 1,460 In 2022

Develop market in addition to China & H.K.

Source: Purchasing Dept., USI Group

8

==> picture [99 x 60] intentionally omitted <==

Develop market in addition to China & H.K.

2021 2022 ABS China & H.K. 67% 49% Market in addition 33% 51% to China & H.K. 2021 2022 GPS China & H.K. 52% 17% Market in addition 48% 83% to China & H.K.

Target market: India, Egypt, and S.E. Asia

Target market: Latin America, Africa and S.E. Asia

9

==> picture [100 x 59] intentionally omitted <==

2022 Business Review-Spread

==> picture [776 x 502] intentionally omitted <==

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

台聚關係企業
unit: USD/MT
3000
2500
2000
1500
1000
1,074
500
431
0
SM ABS ABS-SM
1600 1800
1400 1600
1400
1200
1200
1000
1000
800
800
600
600
400
202 400 268
200 200 236
160
0 0
SM GPS PS-SM SM EPS EPS-SM
----- End of picture text -----

台聚關係企業

Source: PLATTS

10

==> picture [99 x 60] intentionally omitted <==

2022 Business Review-Performance

==> picture [561 x 443] intentionally omitted <==

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

Earning Per Share
Unit: NTD
每股盈餘
5.58
6 4.89
5
4
3
2 1.19
1.04
0.63
0.53
1
0
2017 年 2018 年 2019 年 2020 年 2021 年 2022 年 (Year
)
----- End of picture text -----

11

==> picture [100 x 59] intentionally omitted <==

台聚關係企業

Taita Chemical Co., Ltd 2023 Investor Teleconference 2023 Outlook

 Overall

 Industry  Strategy  Performance

12

==> picture [100 x 59] intentionally omitted <==

2023 Outlook– Overall

台聚關係企業

==> picture [203 x 186] intentionally omitted <==

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

China lifted
lockdown
----- End of picture text -----

==> picture [89 x 90] intentionally omitted <==

==> picture [270 x 207] intentionally omitted <==

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

Inflation,
interest rate
continues raising
----- End of picture text -----

==> picture [92 x 33] intentionally omitted <==

Grasp demand growth Sell out capacity

Develop new market Increase sales volume

13

==> picture [100 x 59] intentionally omitted <==

台聚關係企業

2023 Outlook – Industry (China)

Unit: 10KT

ABS GPS EPS SM New capacity 331 304 163 405 Est. in 2023 Total capacity 957 798 937 2,415 Est. in 2023 Total demand 650 460 370 1,600 Est. In 2023

Source: Purchasing Dept., USI Group

14

==> picture [99 x 60] intentionally omitted <==

2023 Outlook – Strategy

First Stage ��� Get it done before making it better  Develop market in addition to China & H.K.

 Increase sales on direct customers

Second Stage ��� Level Up

1. EPS new capacity

2. Gu Lei plant (Est. start productions in Q3 2025)

3. Production debottleneck

4. ABS + 12,000 MT

5. EPS + 4,200 MT

15

==> picture [99 x 60] intentionally omitted <==

Second Stage: ��� Level Up

Upgrading ESG Performance

Environment Aspect

• Selected top 100 Low-Carbon Competitiveness Corporation by Business Weekly in 2022

• Toufen plant listed as Energy-saving Benchmark Award by Ministry of Economic Affairs

• Environmental expenditure was about NT$200.44 million, 27% more than year 2021

• Put efforts into controlling carbon emission and put ISO14064-1 GHG inventory and external certification into effect.

• Regulatory electricity saving 1%, actual electricity saved 1.22%

• Water consumption per product reduced 23.56% comparing to year 2017

• Greenhouse gas emissions reduced 15% comparing to year 2017 (3 plants of Taiwan)

Social Aspect

• Put PSM(Process Safety Management) training and development into effect.

• Donation for epidemic rapid test kits and taking care of communities, adoption of air purification zones, joining the patrol system of industry area, subscribe organic fruit from local farmers, and sponsoring USI Education Foundation.

• Zero job-related injuries (including contractor) and lasted 6.84million hours

• 100% health examination among all our employees.

Governance Aspect

• Evaluated top 5% of a market value between NT$5 and NT$10 Billion companies according to 2022 Corporate Governance Evaluation by the Taiwan Stock Exchange (the TWSE)

• � Top 500 excellent manufacturers for export and import certified by Taiwan Bureau of Foreign Trade in 2022.

• “Gold Corporate Sustainability Report Award” at the Taiwan Corporate Sustainability Awards (TCSA) in 16

==> picture [100 x 59] intentionally omitted <==

台聚關係企業

2023 Business Review-Performance

Develop market in addition to China & H.K.

2021 2022[Jan.~Mar. ] ABS 2023 China & H.K. 67% 49% 23% Market in addition 33% 51% 77% to China & H.K.

Target market: India, Egypt, and S.E. Asia

2021 2022[Jan.~Mar. ] GPS 2023 China & H.K. 52% 17% 9% Market in addition 48% 83% 91% to China & H.K.

Target market: Latin America, Africa and S.E. Asia

17

==> picture [100 x 59] intentionally omitted <==

2023 Business Review-Performance

台聚關係企業

==> picture [665 x 500] intentionally omitted <==

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

unit: USD/MT
2500
2000
1500
1000
500 431
254
0
SM ABS ABS-SM
1800
1600
1400
1200
1000
800
600
400 268
160
190
135 200
0
SM GPS PS-SM SM EPS EPS-SM
----- End of picture text -----

==> picture [357 x 237] intentionally omitted <==

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

1600
1400
1200
1000
800
600
400
160
200
135
0
SM GPS PS-SM
----- End of picture text -----

Source: PLATTS

18

==> picture [100 x 59] intentionally omitted <==

2023 Business Review-Performance

台聚關係企業

==> picture [328 x 62] intentionally omitted <==

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

Earning Per Share
----- End of picture text -----

Unit: NTD

==> picture [662 x 392] intentionally omitted <==

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

1.29
1.4
1.2
1
0.68
0.8 0.60
0.58
0.43
0.6
0.4
0.2
-0.18
0
2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1
-0.2
----- End of picture text -----

19

台聚關係企業

Taita Chemical Co., Ltd 2023 Investor Teleconference

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

20

==> picture [99 x 59] intentionally omitted <==

台聚關係企業

TAITA CHEMICAL CO.,LTD.

Consolidated Statements of Income

(In millions of NTD, except per share data)

	2023Q1	2022Q1	YoY%	2022	2021	2020
Sales Volume(MT)	85,966	94,590	**-9.1% **	373,976	436,618	441,029
Sales Cost of goods sold	3,575 3,475	4,536 3,926	-21.2% -11.5%	18,084 16,324	20,771 17,385	15,498 12,375
Gross profit gross profit ratio	100 4%	610 14%	-83.6%	1,760 10%	3,386 16%	3,123 20%
Operating expenses	213	394	-45.9%	1,535	1,139	702
Operating income(loss) operating income(loss) ratio	(113) (3%)	216 5%	-152.3%	225 1%	2,247 11%	2,421 16%
Non-operating income	21	105	-80.0%	319	160	61
Profit(loss) before tax	(92)	321	-128.7%	544	2,407	2,482
Tax expense(income)	(20)	62	-132.3%	132	557	562
Profit (loss) profit(loss) ratio	(72) (2%)	259 6%	-127.8%	412 2%	1,850 9%	1,920 12%
Earnings(loss) per share(NTD)	(0.18)	0.65	-127.7%	1.04	4.65	5.07

21

==> picture [99 x 59] intentionally omitted <==

台聚關係企業

Product-specific revenue ( 2023/Q1 )

==> picture [659 x 446] intentionally omitted <==

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

(In millions of NTD)
GW
133
4%
EPS-ZS
ABS
923
1,159
26%
32%
EPS-TW
GPS
530
827
15%
23%
----- End of picture text -----

22

==> picture [99 x 59] intentionally omitted <==

台聚關係企業

TAITA CHEMICAL CO.,LTD.

Financial ratio analysis(Consolidated Statement)

	2022	2021
Operating income margin(%)	1.24	10.82
Net income margin(%)	2.28	8.91
Debt ratio(%)	22.02	28.69
Current ratio(%)	442.35	311.13
Quick ratio(%)	355.31	254.06
Accounts receivable turnover days	41	41
Inventory turnover days	24	20

23

==> picture [100 x 59] intentionally omitted <==

台聚關係企業

Taita Chemical Co., Ltd 2023 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.

24

==> picture [692 x 510] intentionally omitted <==

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

Taita Chemical Co., Ltd
2023 Investor Teleconference
Tianjin
Q & A
Taipei HQ
Tou Fen
Gu Lei
Chien Chen
Zhong Shan
Lin Yuan
----- End of picture text -----

台聚關係企業

25