VF — Investor Presentation 2021

Oct 27, 2021

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VIZIONFOCUS INC. - With your vision focus and clear

TWSE : 4771

OTC Date : Nov. 2[nd] .2021 Underwriter: KGI Securities

Presented by Dr. Angus Shih

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CONFIDENTIAL

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Corporate Image Films

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Outline

 Company Profile

• Contact Lens

• Market Analysis

• Core competitiveness

  • Business Performance

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Company Profile _ General

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Company Name Founded Date

Headquarter

Capital

Chairman

General Manager

Core Business

Factory Locations

VIZIONFOCUS INC.

2012.05.10

3F, No. 66, Youyi Rd., Zhunan Township, Miaoli County, Taiwan

NTD 520M

Shiou-Chuang Huang

Angus Shih (Ph.D.)

Soft contact lenses development, design, manufacturing and trading.

Zhunan Headquarter Zhunan 2[nd] Factory Jiangsu Danyang Factory (China)

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Headquarter Zhunan ,Taiwan

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Zhunan 2[nd] factory, Taiwan

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Jiangsu Danyang, China

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Company Profile _ Milestones

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2012.06 VIZIONFOCUS founded

2012.12 ISO 13485 certificated

2013.02 CE/MDD approval

2013.03 GMP certificated

2013.08 TFDA product approval of Hydrogel and Silicone Hydrogel contact lens

2013.09 PMDA ( Japan ) Registration Certificated of foreign medical device manufacturer

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2014.09 First product launch in Japan ( 38% water content sandwiched color contact lenses ) 2015.11 First product launch in China ( 38% water content tinted contact lens )

2016.03 VIZIONFOUCS China founded

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2017.08 2[nd] Generation product launch in Japan ( 55% UV blocking ) 2018.12 FDA product registration ( 55% toric and multifocal ) 2019.06 VIZIONFOUCS China first launch ( Local supply in China )

2019.12 Performance contact lens FDA registration done

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2020.07 Blue light blocking contact lens launch in Japan

2021.09 Performance contact lens launch in USA

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Company Profile _ Vision & Philosophy

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Vision : To become a leading company with excellent management in the industry Business Philosophy : To provide 5 core values to customers: Quality 、Competitive price、Delivery Speed、Professional Service Upstanding and Sustainable Operation

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Marketing analysis _ Global Market

• Myopia population is about 3 billions in 2020, and becoming 3.8 billions in 2030 (27% increase in the decade). Most of Myopia population locate in Asia area.

• Global market value of contact lens is about US$ 90 billions in 2019. Before 2019, the annual growth rate of the previous 10 years was about 4~6% per year. Due to the Covid-19, contact lens market In 2020 fell by approximately 10% to just over US$ 8 billion. In 2021, pandemic easing due to vaccines released, the demand of contact lenses is recovering. It is estimated to back to the level of US$9 billion by 2022.

• The four leading global brands dominate more than 90% of the market.

However , color contact lens is popular in Asia . High mix and low volume, the nature of color contact lens, fits the strength of Taiwanese manufacturers well. Also color contact lens wearers are with less brand loyalty to global brands. Therefore domestic brands in China grow up rapidly, which stands for great potential to contract manufacturing service providers.

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Myopia population estimation Population in areas

Quote from :

1. Contact lens spectrum, accessed on 2021/January

2. 後疫情時代-消費級市場變化及隱形驗競市場復盤, GFK 2020

3. WHO_World Report on Vision , 2019Y

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Marketing analysis _ China Market

Potential of contact lens market in China Relative low penetration / per capita consumption Market comparison China VS. Japan (2020Y)

Total Population (10,000 people)

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Per Capita
Consumption
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資訊引用: Sigo 南京視課網絡科技有限公司, 2021/2/24

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Marketing analysis _ VF Supply Layout

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China Market
USA Market
Japan Market • Performance contact lens
•
Specialty
•
Hydrogel tinted/color
•
Blue light blocking
(First launch to Japan)
• Toric
•
Hydrogel tinted/color •
Silicone Hydrogel
(local supplies )
•
Blue light blocking
(First approval in China , 2022)
•
Silicone Hydrogel (2023)
•
Specialties (2024)
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Source : Year 2020 official Annual Finance Statement. Year 2021 / Jan ~ Sep Monthly Finance Settlement

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Core competitiveness _ Product Development

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Hydrogel Blue Light Performance Silicone Hydrogel
Specialty
Tinted/Color Blocking Contact Lens (Independent
(First approval in Japan) development)
 38% Tinted / color (2014) 38% Tinted / color Performance Silicone Hydrogel
Multifocal (2022)
 55% UV blocking 55% Tinted / color Sport lens (2021) Tinted / Color
Toric (2022)
color/tint (2017) Blue light absorption: DK/t :100 (2023)
Myopia control (2023)
15% (2020)
2014 2017 2020 2021 2022 2023
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Core competitiveness _ Lean Manufacturing

 Formulating & Synthesizing Self-made Key Components  Ultra-Precision Lathe

 Ultra-Precision Laser Engraving

 In-House automation design Highly Automation Production  AI machine vision

• Intelligence production planning

Intelligence Manufacturing

 AI + AOI

• Intelligent image recognition

• Intelligent manufacturing

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Core competitiveness _ Intelligent Manufacturing

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Intelligent planning Production Quality AI + AOI
Planning Control
AI
Intelligent Intelligent Process parameter
Intelligent character
Inspection Production optimization
recognition
Production Big-Data tracing
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Business Performance

Financial table

Unit : Million NTD

1000

0 250 500 750
							585			855				676
	185		315		1		1	20		1		46		1		33
											1	46			1	33
	-39
-250
	2017Y	2018Y				2019Y			2020Y				2021H1
Net Revenue YOY(%)	185	315 (70%↑)				585 (86%↑)			855 (46%↑)				676
Net Income attributable to Shareholders of the Parent	(-39)	1				120			146				133
Gross Profit	12%	21%				31%			34%				36%
Income from Operations	(-18%)	(-3%)				14%			17%				25%
Net Income attributable rate to Shareholders of the Parent	(-21%)	0.4%				21%			17%				20%
Basic Earnings Per Share	(-1.15)	0.04				2.49			2.94				2.68

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Business Performance

• Consolidated income statement ( by half year)

Unit : NT$ Thousands (Except EPS: NT$)

Net Revenue Cost of Revenue Gross Profit Operating Expenses Income from Operations Non-Operating Income and Expenses Income Before Income Tax Income Tax Expenses Net Income Net Income attributable to Shareholders of the Parent Basic _Earnings Per Share	2021 H1 675,851 100% 432,322 64% 243,529 36% 74,014 11% 169,515 25% (2,340) -0.3% 167,175 25% 19,370 3% 147,805 22% 133,932 20% 2.68	2020 H2 534,579 100% 347,876 65% 186,703 35% 86,177 16% 100,526 19% (10,578) -2% 89,948 17% (19,716) -4% 109,664 21% 97,785 18% 1.96	Half year Comparison 26% 24% 30% -14% 69% -78% 86% -198% 35% 51% 37%	2020 H1	Yearly Comparison 111% 98% 139% 38% 251% -76% 334% -1144% 266% 176% 173%
				320,567 100% 218,573 68% 101,994 32% 53,752 17% 48,242 15% (9,686) -3% 38,556 12% (1,855) -1% 40,411 13% 48,583 15% 0.98

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Business Performance

Capacity build up

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Unit : Million pcs 望隼產能 VIZIONFOCUS (Mpcs/ 月 ) 江蘇視准產能 VIZIONFOCUS China (Mpcs/ 月 )
35
30
25 13.8
9.7
20
15
4.0
10
1.2 18.3
15.8
1.2
12.6
5
1.2 8.5
6.1
3.6
0
2017 2018 2019 2020 2021 2022
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 Monthly capacity base >50M pcs , 3 factories

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Business Performance

Unit : Million NTD

Monthly Sales

	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales	Unit : Million NTD Monthly Sales
160
0 20 40 60 80 100 120 140	139
	130 121 132 116
	97 95 103 99 96 112
	74 85 80 90
	66 64
	4446 51 50
	Jan- 20	Feb- 20	Mar- 20	Apr- 20	May- 20	Jun- 20	Jul- 20	Aug- 20	Sep- 20	Oct- 20	Nov- 20	Dec- 20	Jan- 21	Feb- 21	Mar- 21	Apr- 21	May- 21	Jun- 21	Jul- 21	Aug- 21	Sep- 21
營收(百萬) Revenue/M	44	46	51	50	66	64	74	85	97	80	95	103	99	90	130	121	139	96	132	112	116

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Thank You

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