SUNKO INK CO., LTD.

Investor Conference Aug 25, 2016

Index

1.Company Profile

2.Merger with Kuo Ching Chemical

3.Main Products

4.Financial Highlights

5.Q&A

SUNKO

1.Company Profile

SUNKO

Founded in 1974, Sunko began its operation as a manufacturer of inks and

paints. Over the past 40 years, Sunko has diversified its businesses and

become a leader in polyurethane and plastic additives.

On March 30, 2016, Sunko merged with Kuo Ching Chemical, a company

with similar product lines, to broaden Sunko’s product profolio and to

strenghten its market position.

Capital: 2,223 Million NT Dollars

Chairman: Mr. Timothy HUANG

Company Locations: Taichung headquarter, 5 Manufacturing Sites and 1

R&D Center

Total Employees: 591 (end of July 2016)

R&D Center

Head Office

Ping Zhen plant

Da Jia plant

Dali plant

Nangang plant

ChuanHsin plan

(cGMP)

-Agrochemicals

-Fine Chemicals

-Clarifying agent

-Flame Retardant

-Elastomer (TPU)

-Fine Chemicals

-Fine Chemicals

-Elastomer(TPV)

-Electronic Chemicals

-UV Absorbers

SUNKO

Core Values

SUNKO

Develop niche know-how to manufacture top

quality products whilst achieving good cost

efficiency

Fullfill customer requests and commit to

customer satisfaction

Build up long-term strategic alliance with

business partners and maintain a sustainable

growth

Be a responsible player in the industry

Innovation Is the Key to Our Success

SUNKO

New applications

New structures

New formulations

New process

2. Merger with Kuo Ching Chemical

1+1=?

SUNKO

The growth of a company is like blowing a bubble

SUNKO

SUNKO

Bubble may burst if grows too big and too

fast

Bubble may burst if it expands too fast or too big

Combining two bubbles together is a quick

way to make a bigger bubble

SUNKO

Product Profolio - Before Merger

Polymer additives Polymer

UV Absorber Agrochemicals

Polymer

Polymer additives Polymer

SUNKO

Product Profolio - After Merger

SUNKO

Polymer additives Polymer

UV absorber Agrochemicals

Polymer

How to Make a Long-lasting, Bigger Bubble?

SUNKO

Adding “new ingredients” to the bubble recipe

makes the bubble bigger and stronger

Further Growth with New Products

SUNKO

Polymer additives Polymer

New products

UV absorber Agrochemicals

Polymer

SUNKO

1+1 Goes to Infinity

3. Main Products

Agrochemicals

Fine Chemicals

Polymer

UV Absorbers

SUNKO

Carbaryl

Carbofuran

Carbosulfan

Methomyl

Paraquat

Propoxur

Agrochemicals

SUNKO

Bendiocarb

Formetanate

Fine Chemicals -Non-halogenated Flame Retardant

KFR-DOPO

KFR-DOPO-HQ

SUNKO

Fine Chemicals -Curing Agent

K-Cure 339 (Zinc diacrylate)

K-Cure 439 (Zinc dimethacrylate)

SUNKO

K-Mars 120 (Morpholine Borane)

Fine Chemicals -Reducing Agent

K-Mars 110 (Dimethylamine Borane)

SUNKO

Fine Chemicals -Antioxidant

K-NOX® 168

(Irganox 168)

K-NOX® 230

(Irganox 1330)

K-NOX® 148

(Irganox 3114)

K-NOX® L57

(Irganox 5057)

K-NOX® 1520

(Irganox 1520)

K-NOX® 1726

(Irganox 1726)

Prevents thermal oxidative degradation

of plastics and rubbers

SUNKO

Polymer-PU Based Surface Treating Agent

PU Adhesives

PU Glaze Agent

PU Matting Agent

SUNKO

Kuotane TPU Polyester type & polyether type

Kuotane-FR Flame retarded grade

Kuotane HMVT High moisture vapor transmittence grade

Polymer-TPU

SUNKO

ELASTOPLAS®

Elastoplas® molding/extrusion compounds

are a family of thermoplastic elastomers

categorized in the “plastic” industry as

TPVs are unique products in that they

provide the performance attributes of

thermoset rubber with the processing ease

of thermoplastics.

The thermoplastic characteristics of the

Elastoplas® products permit the use of

sprue and runner regrind at fairly high

loadings with minimal loss in physical

properties. In addition, TPVs are known

for good weather resistence and chemical

resistence which make them ideal

alternatives to PVC.

Polymer-TPV

SUNKO

Oxybenzone

Octocrylene

Avobenzone

UV Absorbers

SUNKO

4. Statement of Comprehensive Income

SUNKO

Jan to Jun, 2016Jan to Jun, 2015

(Restated)Difference

Net Sales 1,939,187 2,077,532 -138,345

Gross Profit 386,572 286,856 99,716

% 20% 14% 6%

Operating Expenses 198,068 199,901 -1,833Other Non-operating

Revenues & Expenses 6,656 0 6,656

Operating Profit 195,160 86,955 108,205

Net Profit After Tax 194,651 104,751 89,900

Net Profit 181,452 94,127 87,325

Basic EPS(NT$) 0.74 0.34 0.40

TWD in ’000

4. Consolidated Balance Sheet Highlights

SUNKO

2016.6.30 %2015.6.30

(Restated)%

Current Assets 2,337,478 56% 2,398,923 57%

Non-current Assets 1,830,312 44% 1,825,959 43%

Total Assets 4,167,790 100% 4,224,882 100%

Current Liability 931,262 22% 1,212,037 29%

Non-current Liability 889,732 21% 917,200 22%

Total equity 2,346,796 56% 2,095,645 50%Total Liabilities &

Equity 4,167,790 100% 4,224,882 100%

TWD in ’000

Sustainable Growth

Friendship

Fun

SUNKO

Company Philosophy

5. Q&A

THANK YOU

SUNKO