International Csrc Investment Holdings Co. Ltd. · TWSE:2104

International Csrc Investment — China Synthetic Rubber — Q1 2018 Earnings Presentation

32 slides from International Csrc Investment's earnings presentation, May 2018

  1. Slide 1: 2018 Investors' Conference

    2018 China Synthetic Rubber Corporation Investors’ Conference May / 2018

  2. Slide 2: Carbon, source of life, foundation of civilization

    Carbon, source of life, foundation of civilization 碳乃生命之源，文明之本 Carbon Black moves civilization 碳黑是文明進步的滾輪

  3. Slide 3: CSRC Group Carbon Black Business Overview

    CSRC Group Carbon Black Business Overview

  4. Slide 4: Capacity of Major Carbon Black Makers

    Capacity of Major Carbon Black Makers MT (‘000) 2,133 2,010 1,285 1,145 790 495 472 465 451 445 CABOT BIRLA OEC JBCCB CSRC LongXing PCBL OCG TOKAI SRCE Source : Notch Consulting Group, 2016

  5. Slide 5: Agenda

    Agenda • Industry Overview • Business Outlook • Q1/2018 Operating Results

  6. Slide 6: Industry Overview

    1/ Industry Overview

  7. Slide 7: Carbon Black Industry Overview

    Carbon Black Industry Overview Expansion will be the inevitable trend MT (‘000) 25,000 4.0% 4.5% 4.0% 20,000 3.1% 3.1% 3.2% 3.2% 3.5% 3.0% 15,000 2.5% 2.0% 10,000 1.5% 1.0% 5,000 0.5% 0 0.0% 2017 2018 2019 2020 2021 Demand Growth % North America ASIA 3,000 3.5% 4.0% 5,000 7.0% 3.0% 3.0% 3.0% 3.5% 5.

  8. Slide 8: Specialty Carbon Black Overview

    Specialty Carbon Black Overview Developing high value Specialty CB Products SCB Worldwide 9% 3500 8% 8% 8% 7% 10% 8% 3000 6% 2500 2133 2292 4% 1832 1975 2% 2000 1692 0% 1500 1094 1148 1208 1265 1037 -2% 1000 -4% -6% 500 -8% 0 -10% 2017 2018 2019 2020 2021 Value (USD M) Volume (kt) Value Growth Rate

  9. Slide 9: Business Outlook

    2/ Business Outlook

  10. Slide 10: Beyond Circular Economy, Globalization, The Future is Worth It

    Beyond Circular Economy Globalization The Future is Worth It

  11. Slide 11: Beyond Circular Economy, Globalization, The Future is Worth It

    Beyond Circular Economy Globalization The Future is Worth It

  12. Slide 12: Carbon Black is Circular Economy

    Carbon Black is Circular Economy Transfer industrial waste as raw material • Petrochemical industry • Coking industry / Steel industry Recycle Energy Emission Control System • Recycling Energy from • Dramatic reducing Sox, Production NOx, PM • Steam • Power

  13. Slide 13: Carbon Black is Circular Economy

    Carbon Black is Circular Economy The source of life Foundation of civilization Application: • Tire: Passenger Car Radial, Truck Tire… • Mechanical Rubber: Belt, Hose, Auto parts… • Plastic: Agricultural film, pipe, wire and cable… • Ink: Package printing… • Coating: Automotive coating, architectural

  14. Slide 14: Beyond Circular Economy, Globalization, The Future is Worth It

    Beyond Circular Economy Globalization The Future is Worth It

  15. Slide 15: Globalizing

    Globalizing Global Talent Global Brand Global R & D Global Account Integration Service Global Management Global Feedstock System Sources

  16. Slide 16: Beyond Circular Economy, Globalization, The Future is Worth It

    Beyond Circular Economy Globalization The Future is Worth It

  17. Slide 17: Industry Holding Company

    Industry Holding Company • Effective Internal Management • Industry Transparency • Enhancing expanding strategies of each business unit to higher level

  18. Slide 18: Industry Holding Company Organizational Chart

    Industry Holding Company Organizational Chart 林園先進材料 科技股份有限公司 轉型前 碳煙 中橡炭黑大陸三廠 (鞍山、馬鞍山、重慶) 事業群 Synpac 中橡炭黑美國廠 (North Carolina),Inc. CCC USA Corp. 中橡炭黑大陸三廠 中國合成橡膠 中橡炭黑印度廠 CCIL (鞍山、馬鞍山、重慶) 股份有限公司 中橡炭黑美國廠 (CSRC) CCC USA Corp. 國際中橡 全循環經濟(股) 中橡炭黑印度廠 投資控股 生技 （名稱暫定） CCIL 股份有限公司 事業群 Synpac (North Carolina),I

  19. Slide 19: Commitment to Eco-friendly

    Commitment to Eco-friendly High Pollution Advanced Pollution Control Standard Control System Taiwan Nox, PM SNCR  SCR China Sox, Nox, PM De-Sox, SNCRSCR Sox, Nox, PM USA De-Sox, SCR (consent decree) set new plant and invest India NCR zone PM issue advanced system (De-Sox, SCR)

  20. Slide 20: Commitment to Eco-friendly

    src % Commitment to Eco-friendly THE FUTURE IS WORTH IT

  21. Slide 21: Expanding in India

    Expanding in India • Current CCIL capacity is 85,000 Mt • Through further capacity expansion to track profit and market share growth Figure 1: India Carbon Black Market Size, By Figure 2: India Carbon Black Market Size, By Value, 2012 - 2026F (USD Million) Volume, 2012 - 2026F (‘000 Metric Ton) CAGR

  22. Slide 22: Expanding in India

    Expanding in India New Current Tire Expansion in Gujarat Carbon Black deployment Source: All India Tire Manufacturer Association

  23. Slide 23: Expanding in India

    Expanding in India Capacity 450,000 Mt Production • Carbon Black Sector (Rubber Carbon Black and Specialty Carbon Black) • Steam • Power Expected USD 200 Million Capex Three Phases Expected Phase I will complete in Timeline 2021

  24. Slide 24: Battery Power

    Battery Power Focusing on Cylindrical cell 21700 Characteristics: • Cylindrical cell Size: • Dimension increase 10% Current: 18650/20700 • Energy cost decrease 20% Development: 21700 • Capacity increase 30~40% • Applied Field: • Cell amount in the pack ESS, Power Tool, EV, Vacuum decrease 30% Cleane

  25. Slide 25: Investing in Future

    Investing in Future Resource Consolidation • Establishing R&D Center • High- • Investing in performance CB Talent and • Specialty CB Technology • New generation Development CB for EV tire • Investing in • Integrating pharmaceutical global resources and technologies R&D Niche Product Investment Devel

  26. Slide 26: Q1/2018 Operating Results

    3/ Q1/2018 Operating Results

  27. Slide 27: Q1/2018 Results

    Q1/2018 Results Sale Revenue Gross Margin & % NTD million NTD million Gross Margin Gross Margin % 20,114 29% 28% 26% 28% 15,889 4,570 5,570 4,857 5,435 1,299 1,511 FY FY Q1/ Q1/ FY FY Q1/ Q1/ 2016 2017 2017 2018 2016 2017 2017 2018 EBITDA Net Income& EPS NTD million EBITDA EBITDA / Sales Net Income

  28. Slide 28: Operating Income by Business Units

    Operating Income by Business Units Q1/2018 NTD Million Y2016 Y2017 181 -5 -108 15 19 510 -209 18 -21 915 3134 3233 Carbon Black Biotech Energy Others 28

  29. Slide 29: Carbon Black Sales & GM%

    Carbon Black Sales & GM% 6,000 40% 15.4% 15.8% 9.2% 12.2% 20% 5,000 10.6% 11.5% 10.4% 7.1% 3.5% 0% 4,000 3,849 3,719 3,444 3,514 3,405 -20% 3,000 2,639 2,807 2,667 2,493 -40% 2,000 -60% 1,000 -80% 0 -100% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 NTD million GM % 29

  30. Slide 30: Financial Structure

    Financial Structure 3 Current Ratio 2.3 2.2 2.2 1.9 2.0 2.0 Leverage Ratios (%) 2 40% 32.1% 1 29.4% 29.6% 2013 2014 2015 2016 2017 2018Q1 27.6% 28.4% 30% 26.9% 50 Debt Ratio ( L/A) 44 45 42 20% 39 38 40 37 37 16.9% 35 10% 30 2013 2014 2015 2016 2017 2018Q1 -0.3% -0.5% -4.8% -6.1% -6.0% 0% Book Value

  31. Slide 31: Thank You

    END OF PRESENTATION THANK YOU

  32. Slide 32: Disclaimer

    Disclaimer The forward-looking statements contained in this presentation are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these forward-looking statements. China Synthetic Rubber Corporation makes no representation or warranty as to t

China Synthetic Rubber — Q1 2018 Earnings Presentation on 6ix