#1CSRC 2019 QI International CSRC Investment Holdings Co. INVESTOR'S CONFERENCE#2Disclaimer 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. International CSRC Investment Holdings Co. makes no representation or warranty as to the accuracy or completeness of these forward-looking statements and nor does International CSRC Investment Holdings Co. undertake any obligation to update any forward-looking statements, whether as a result of new information or future events.#3CSRC Group Business Overview E-ONE MOLI AMERICA ☐ Brussels, Belgium EUROPE/MEA ASIA Barberton, OH Phenix City, AL Sunray, TX Ponca City, OK Kemya, Saudi Arabia Houston, TX New Delhi, India Gujarat, India Manufacturing Sites Expansion Site Technology Centers Licensee Manufacturing Site Offices E-ONE MOLI CSRC Liaoning, Mainland China Anhui, Mainland China Chongqing, Mainland China Taipei, Taiwan Kaohsiung, Taiwan E-ONE MOLI#4CONTENTS 01 Carbon Black Segment 02 Battery Segment 03 IQ 2019 Operating Results CSRC#5OI Carbon Black Segment#6Capacity of Major Carbon Black Makers 2,133 2,050 India 85 Taiwan 120 Continental CarbonⓇ Mainland China 285 USA 305 1,211 1,155 941 795 515 505 400 CABOT > ADITYA BIRLA orion BIRLA CARBON Source: Notch Consulting Inc., 2018 ЄtoKAI global experts you can frist Continental CarbonⓇ SidRichardson Carbon & Energy Co Phillips Carbon Black Limited Tokai completed acquisition of Sid Richardson in Sept. 2018 Omsk Carbon Group *龙星化工 CSRC MT ('000)#7Worldwide Carbon Black Demand & Supply Supply Worldwide Demand CAGR North America Supply Demand CAGR = 2.8% 2017 2018 2019 Demand CAGR Demand CAGR = 3.1% || 2017 2018 2019 2020 2021 2022 Mainland China Supply Demand " CSRC 2020 2021 2022 India -CAGR Supply Demand CAGR Demand CAGR = 3.6% Demand CAGR = 4.9% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Source: Future Markets & Notch Consulting Inc., 2018#8Worldwide CB Demand for Tire/Non-Tire Applications Worldwide Demand CAGR '14-'17 CAGR '17-'22 CSRC North America CAGR 1.6% Asia CAGR 3.9% Tire 2.9% 2.7% 694 752 1979 2400 2017 2022 2017 2022 Non-Tire 2.3% 3.1% Non-tire -CAGR Non-tire CAGR Source: Notch Consulting Inc., 2018 Mainland China CAGR 4.4% India CAGR 3.5% 1155 1430 2017 2022 Non-tire CAGR Unit: MT ('000) 166 197 2017 2022 Non-tire CAGR#9Overview and Outlook Mainland China: 500 Uncertainties are expected to continue into Q2. Weaker demand coming from tire market. -500 USA: • Demand growth is expected to continue into 2019. ☐ Peers continue to announce price increase due to strong demand. India: Market demand has been strong. Supply is catching up quickly. Selling price is impacted by imports from China. -1,000 0 4Q/18 CSRC Estimated GP/Mt among Chinese Makers 10/19 Source: BAIINFO.COM Inc., 4/11/2019 Taiwan: • Higher utilization rate with co-generator revamping. Carbon black production is expected to increase.#10High-Value Applications 008 Non-Tire Rubber Special Applications CSRC#11CSRC Non-Tire Business Compounder Plastics Mechanical Rubber Goods 210 CSRC Tire/Non-Tire Sales Volume % 23% Non-Tire Volume 13% ↑ 28% 77% 72% 2017 2018 ■Tire ■ Non-tire#12Non-Commodity Product R&D Capabilities Leverage R&D strength to develop a range of non-tire carbon black products. Demand Growth The demand growth of non-tire rubber is expected to be stronger than tire rubber. Stronger Demand R&D Investment Niche Carbon Black Diversification CSRC Diversification Diversify applications, product portfolio, and clientele. Non-Commodity CB Taking carbon black products to the next level.#13Rapid Growth through Product Innovation 2017 2018 R&D centers built in Taiwan & India Low rolling resistance tire development 2019 2020 Onward Non-tire rubber applications CSRC Moving towards special applications#14Expansion in India ● • ● Advantageous geographical location Customers and feedstock cluster Well-developed infrastructure Higher economic growth Friendly investment environment 古光拉特邦: Ahm CSRC New plant CCET: . Basic design accomplished Land acquired, preparation stage Dahej, Gujarat Business model Residual Power Carbon black Sell Internal Use Steam Sell#15Reduction Rate AMERICA Sunray, TX Anhui, Mainland China 1992-2019 SOX 96% NOx 91% Liaoning, Mainland China 2001-2019 SOX 70% NOx 57% Ponca City, OK Phenix City, AL Ponca & Phenix City, USA 2022- SOX 130 ppm↓ NOx 38 ppm↓ EUROPE/MEA ASIA CSRC Chongqing, Mainland China 2011-2019 SOX 91 %↓ NOx 34%↓ Liaoning, Mainland China Anhui, Mainland China Chongqing, Mainland China New Delhi, India Kaohsiung, Taiwan 1992-2019 SOX 99%↓ 1986-2019 SOX 58%↓ NOx 24%↓ NOx 73%#16Commitment to Sustainability Top 23% EcoVadis 2019 Ratings SILVER Continental CSRC C. Carbon 汕尾國小公開憎書 歲末 BEAVER 「綠金行! CSRC 綠金商機-全球循環經濟零廢棄創新解方 高峰 壇 ecovadis 环保巨资投入,炭黑巨头达成超低排放 tal कॉन्टीनेन कार्ब CSR Rating ALALALALA NO मिटेड स#1702 Battery Segment#18Market Ecosystem MOLICELⓇ NCA Cathode Material Fast Charging & Discharging Energy Storage System Energy Storage: Next Game Changer Panasonic considers producing 2170 cells in Japan Global Energy Storage to Hit 158 Gigawatt-Hours by 2024, Led by US and China Toyotato tie up with major Chinese automaker on fuel cell vehicles 電池儲能系統成本降,2050年全球綠能發電占比將過半 动力电池攻关300wh/kg!国内NCA材料布局起底 2019-01-28 10:42:57 来源:起点锂电大数据 MERINCADEROUS PENCATED STEGE 1028-12-25 00:12 SUN SUEDER GGII:2020年國內高鎳三元材料需求量將達7噸 201401-2009-20 成熟的NCA电池,可能是中国动力电池市场的一片新蓝海 中國NCA三元電池進入高能量密度3.0時代 2018 NCM8115NCA, ****? Global batter storage market to hit USD 13#19MOLICEL Lithium Battery Market Trend (MWh Capacity Basis) LiB market trend by major applications MWh/CY 2000,000 180,000 160,000 140,000 CAGR: 16.6% 120,000 100,000 80,000 60,000 40,000 20,000 0 2017 2018E 2019F 2020F 2021F Ratio 100% Others 8% 10% 11% 12% 12% 13% 12% 90% EV 18% 80% 24% 27% 27% 28% 30% 33% 70% 60% 27% Power Apps IT Apps 26% 50% 27% 29% 30% 30% 40% 30% 30% 2022F 2023F 47% 20% 39% 35% 32% 29% 28% 25% 10% 0% 17 18E 19F 20F 21F 22F 23F ■IT Apps Power Apps ■EV Others Other portables: tablet, DSC, cam corder, PMP, game & peripherals Other power Apps: power tools, shaver & toothbrush, e-bicycle, cleaner Others: power banks, ESS, etc Source: TSR report, 2018Q4#20Market Position and Application 2,500 MOLICEL® P45A P42A E-mobility • . EV E-bus/E-truck E-motorcycle E-scooter E-bike UAV/Drone 2,000 15Ah Japanese Maker • E-boat Korean Maker • Start-stop system Power density, W/kg $1,500 1,000 100 200 Energy density, Wh/kg MOLICEL® Energy storage system . . Frequency balancing Super charger Auxiliary service (1MW, discharge within 15min) Demand response BBU for data center Telecom 5G Base station • Base station energy storage Home & personal device • Shaver & T-brush • Vacuum cleaner • 300 Patient monitoring Power applications Garden tools Backpack harness#21JUMP Application - High Power 電池組及電池管理系統 Battery System EMOLICEL JustPost MESS DIVEIC MOLICEL® MOLCEL 1MWhi E-Mobility Uber Jump E-motorcycle IMWh ESS (Longjing) IMWh ESS (ITRI) UBER Drones Uber Elevate Life support system Dyson vacuum cleaner Garden tools Exo-skeleton technology 21#22Continuing Momentum in 2019 and Beyond MOLICELⓇ The Cells Drive Great Power Leveraging technology for competitive advantage -Cathode: Ni rich NCA -Anode: C+Si/SiO -High Safety Separator -Functional E/L Cooperate with suppliers to develop next-generation materials Enhance R&D capabilities & double R&D talents Advanced production lines provide accuracy & capacity MOLICEE#23NTD million 624 904 Revenue 972 963 Operating Results 782 NTD million Net Income 170 120 MOLICELⓇ 0.74 35 33 IQ 18 2Q 18 3Q 18 4Q 18 IQ 19 IQ 18 2Q 18 3Q 18 4Q 18 IQ 19#24O3 IQ 2019 Operating Results#25IQ 2019 Operating Results Revenue NTD million 5,435 6,069 1Q/2018 10/2019 Gross Profit & % CSRC NTD million Gross Margin Gross Margin % 27% 28% 26% 20,114 24,432 1,511 1,579 2017 2018 1Q/2018 10/2019 EBITDA & % NTD million EBITDA - EBITDA % 24% 23% 23% 24% 28% 5,570 6,577 2017 2018 Net Income & EPS NTD million Net Income Basic EPS (NT$) 4.18 1.17 0.88 3.35 1,317 1,419 4,701 5,846 794 755 2,273 2,994 10/2018 1Q/2019 2017 2018 10/2018 10/2019 2017 2018#26IQ 2019 Operating Results by Segments Revenue NTD Million CSRC Operating Income NTD Million 962 1,018 3,987 3,881 624 782 2,125 3,463 3,849 4,262 14,082 16,944 3,679 915 962 3,134 15 330 26 181 150 510 668 2017 2018 IQ/2018 IQ/2019 -21-2017 2018 I Carbon Black Battery Biotech IQ/2018 IQ/2019 Carbon Black Battery Biotech#27Carbon Black Sales & Gross Profit Margin 15.8% 15.6% 10.4% 12.2% 11.5% 9.2% 10.2% 6.2% 4,524 4,303 4,268 4,262 3,719 3,849 3,514 3,405 2Q17 3Q17 4Q17 IQ18 2Q18 3Q18 4Q18 IQ19 Sales GM % NTD million GM % CSRC#28Financial Structure 80% 60% Interest bearing Debt/ Asset (consolidated) Current Ratio 3 2.6 2.5 2.3 2.2 2.0 2 2015 2016 2017 2018 IQ/2019 50% Debt Ratio (L/A) 44 38 40% 40 37 32.1% 28.4% 26.9% 24.5% 24.2% 20% 36 35 30 30 2015 2016 2017 2018 IQ/2019 Book Value / share 0% 50 2015 2016 2017 2018 IQ/2019 40 40 36.2 34.5 31.4 31.8 29.0 90 30 20 20 CSRC 2015 2016 2017 2018 IQ/2019#29CSRC We Appreciate Your Listening! 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