1

ChairmanMing-Hsien Chen

Disclaimer• This presentation contains forward-looking statements

and these forward-looking statements are subject to risks, uncertainties and assumptions. The unexpected circumstances arise may cause the differences between the actual results and the company’s expectations.

• The forward-looking statements provided in this presentation is reflected by St Shine Optical current operation status and forward-looking assumptions. St Shine Optical shall not bear any liabilities for the differences between the actual results impacted by the external factors and the company’s early expectation.

• Neither this presentation nor any of its contents may be reproduced, amended, re-edited, removed, or send to a third party without the prior written consent of St. Shine Optical.

05 Opportunities and Challenges

04 Planning and Perspective

03 Business Overview

02 Industry Overview

01 About Company

06 Products introductionCONTENTS

1. About Company

Establishment：1986

Main Product：Disposable Contact Lens

Capacity：1 billion pieces

Employees：Over 3,500

Foreign Ownership：45.25% (2019.4.14)

Company Profile

OBM for Taiwan、 ODM/OEM for Overseas markets

Business model

Taiwan、Japan、USA、Europe、China

Focus markets

Profile

Events1986 Establishment of St.Shine Optical

1992

1997

1999

2004

2010

2015

2016

Aspheric Multifocal lens production

Cast-mold production line for spherical

GMP CertificationMultifocal lens product

Daily disposable lens productionPublic listing in Taiwan Stock Exchange

Daily disposable cosmetic lens production

Daily disposable Aspheric Multifocal lens production

Daily disposable Silicone Hydrogel lens production

2019 Pass the double-blind clinical trials for children’s myopia control

Factory I Factory II Factory III Factory IV

Factory V Factory VI Logistic

Production Sites

India

South KoreaChina

Indonesia

Malaysia

Mexico

Canada

Taiwan

HollandBelgiumGermany

RussiaUK

Spain

Australia and NZ

USA

Singapore

SaudiArabia

Brazil

Hong Kong

JapanItalyTurkeyGreece

Israel

Worldwide Activities

Japan

China

USA

Europe

Specsavers

OEM and ODM Brands Overseas

2. Industry Profile

America43%

Europe27%

Asia30%

2018FY

Worldwide Contact Lens Markets- by region

Total market size：USD 8.5 billion(CAGR 4~6%)

Source ：St. Shine Estimated

Spherical52%

Toric26%

Multifocal11%

Cosmetic11%

2018FY

Worldwide Contact Lens Markets- by function

Source ：St. Shine Estimated

J&J39%

Alcon23%

Cooper23%

B&L8%

Other7%

2018FY

Source ：St. Shine Estimated

Worldwide Contact Lens Markets- by brand

Worldwide Contact Lens Markets- by daily lens penetration

Source ：St. Shine Estimated

28% 30%

36%41%

44%46% 48% 50% 52% 53%

60%63% 65% 65% 66%

2014年 2015年 2016年 2017年 2018年

America Europe Asia

unit：thousand pcs

Taiwan Import/Export CL volumein past 5 years

Source：Directorate General of Customs

2014年 2015年 2016年 2017年 2018年

197,913 196,945 219,384 250,536 266,090

647,666 745,771

875,164

1,105,166

1,324,521

Import Export

Taiwan• St. Shine Optical (1986)• Unicon (1992)• Hydron (1995) - Ginkno• Visco (1998) - BenQ Materials• I-See Vision (1999)• Innova (2000) - Unicon• Mildex (2001) - Panjit Group• Largan Medical (2004) - Largan Group• i-Lens (2007) - Abico Group• Smart Performer (2008)• Pegavision (2009) - Pegatron• Vizionfocus (2012) - Chang Wah Elec.• Camax (2013)

CompetitionsOverseas

• USA - J&J、Alcon、

Cooper Vision

• Canada - B&L

• Spain - Mark'ennovy

• Japan - Seed、Menicon

• Korea - Bescon(B&L)、Interojo、

G&G、MiGwang…

• China - Ginkno

• Singapore - Clearlab、Oculus

• Malaysia - Supermax

3. Business Overview

Company SalesUnit：million NTD

2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年

2,392

3,099 3,459

4,169

5,222 5,411 5,860

6,458 6,418 6,676

Unit：thousand pcs

Sales Volume

2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年

200,306

303,971

373,177

464,190

576,035 598,134

662,753 727,360

775,633 822,985

2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年

191,125 246,965323,326

450,540

553,814 647,666

746,091

875,164

1,105,166

1,324,521

159,185228,372

270,260

366,818457,031

500,323564,267

654,420718,169

764,241

Total Export St.Shine Export

Source：Directorate General of Customs

Export VolumeUnit：thousand pcs

2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年

12.38

17.30

21.16

23.96

31.70 31.2028.88

35.26

31.52 33.07

10.50

14.5015.50

17.50

22.5023.85 23.50

27.0025.00

26.50

EPS Cash dividend unit：dollar NTD

EPS and Dividends

Payout ratio：70~85%

ROE

2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年

31.00

37.9940.37 40.75

45.29

38.26

32.60

36.38

30.07 29.78

2006年 2007年 2010年 2011年 2013年 2014年 2018年 2019年

12 18

26

34

44

58

70

78 Total lines

Production Lines Expansion

24source：Last date for suspension of share transfer for a shareholders meeting.

Foreign Investor Ownership

2010年 2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年 2019年

40%

45%49%

51%47%

57%

67%

55%

49%45%

2019 Q3 Financial ResultAccounts Title Q3 Q1-Q3 % YoY

Operating revenue 1,572,752 100% 4,768,542 100% 4%Gross profit from operations 493,303 31% 1,586,313 33%Operating expenses (123,936) (8%) (368,023) (8%)

Selling expenses (59,005) (4%) (176,323) (4%)Administrative expenses (40,031) (3%) (123,673) (3%)

R&D expenses (21,899) (1%) (56,567) (1%)Expected Credit Losses (3,001) - (11,460) -

Net operating income 369,367 23% 1,218,290 25%Total non-operating income

and expenses (22,504) (1%) 18,550 -Profit from continuing operations

before tax 346,863 22% 1,236,840 25%Tax expense (69,452) (4%) (260,281) (5%)

Net Profit 277,411 18% 976,559 20% 22%EPS 5.50 19.37

Unit：thousand NTD

4. Planning and Perspective

• Efficient, stable auto-manufacturing processes

• Flexible production

• Wide production range

State-of-the-ArtTechnology

• OEM for most famous brands in Taiwan and overseas

Most OEM partners

• Most reliable qualitySuperior Quality

Competitive Advantages• Lens design, material R&D, and

manufacturing process development

Innovative Development Capability

• ISO, GMP, CE, MDSAP certified

• TFDA, China FDA and various market approvals

• Support customers to obtain their local approvals

Professional Regulatory Support

• Ticon branded products earn high reputation in TW

High Brand Identity

Planning and PerspectiveCapacity PlanningStrive orders actively to raise utilization rate

Market Expansion-Expand colored lens overseasmarkets

-Expand product range to satisfy customers’ demand

-Applying for more market approvals in emerging markets

R&D -Improving production efficiency of silicone hydrogel

-Developing high efficiency production equipments

-Developing applications of multifocal lenses

Growth Goal-Introducing new products for existing customers to expand their product lines

-Higher growth rate than industry average growth rate

5. Opportunities and challenges

Main-Stream Products• Aspheric daily-> Growing market in

America and stable market in Asia and EU

• Color daily-> Asia

Potential Products

• Toric-> US and EU markets• Multifocal -> Worldwide

(over 40 year-old wearers)

• Myopia control -> Worldwide (children)

• Myopia cure -> Worldwide (children)

競爭威脅

成⻑動能

Threat/Competitions

• International brands are deeply rooted in EU and US markets

• Price competition in Asia market

• The price of silicone hydrogel daily disposable lenses in EU has reduced and almost become comparable to hydrogel ones.

Growth Momentum

Opportunities and Challenges

6. Products introduction

Myopia control lens for ChildrenIntroduction A kind of aspheric lens which can reduce

pressure of the eyes from watching near and far distance for a long period of time. By wearing this lens constantly, children’s myopia progression can be controlled or even improved.

HistoryThis product is different from normal corrective contact lenses. It requires clinical trials to verify the effect, which is similar to developing new medicines. Before clinical trials, a series ofexaminations had been done to ensure the lens safety. In 2015, this product entered into the double-blind experiment. In October 2019, it has finally unblinded (TFDA) after more than 5 years of hard work. Next step, we will apply for certificates and patents in Taiwan and other countries.

New Product-Ticon光漾瞬間

老花專用老花專用散光日拋散光日拋

Own Brand Products

Q & A