Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101

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Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Stock code: 2101

Nankang Rubber Tire Corp., Ltd.
  2019 Investor Conference
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Conference Program

Program      Time                     Program                             Speakers

   1      14:00~14:30   Guest Registration

                                                                     Honorary Chairman:
   2      14:30~14:40   Greetings From the Company
                                                                      Mr. Lin Hsueh-pu
                        Description of the company's operating       Honorary Chairman:
   3      14:40~15:00
                        status                                        Mr. Lin Hsueh-pu

                        Report on Utilizing the Company’s
                                                                 R&D Deputy General Manager:
   4      15:00~15:10   Advantages and Competitiveness-
                                                                     Mr. Peng Tiancheng
                        Boosting Promotion Plans

                        Report on Major Progress in the          CEO of Nanrong Development
   5      15:10~15:30   Nangang Plant Land Development              Construction Co. (Ltd.):
                        Project and the situation of sales           Mr. Hong Guoxiong

   6      15:30~16:00   Q&A

                                                                                          1
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Outline

Current Status of Company
Operations
• Company Profile
• Current Status of Operations

                                 Honesty, pragmatic,
Plans for Maximizing Current     creativity
Advantages and Boosting
Competitiveness

Major Progress in the Nangang
Land Development Project and
the situation of sales

                                                       2
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Company Profile
 The company was established on February 25, 1959, and became a publicly
 listed firm in November 1963.
Capital Amount       NT$8.339 billion

Turnover             NT$104.42 billion (2018 figures)

Company Address      6F., No.136, Sec. 3, Renai Rd., Daan Dist., Taipei City 106, Taiwan

                     Hsin-Fung Factory: No.399, Xining Rd., Xinfeng Township, Hsinchu
                     County 304, Taiwan
                     Zhangjiagang Factory:Shanghai Road, Zhangjiagang Bonded Area,
Factory Addresses
                     Jiangsu Province
                     Nangang Factory-No.51, Sec. 2, Nangang Rd., Nangang Dist., Taipei
                     City 115, Taiwan (currently under development)
                     Floor area of the Xinfeng factory- 52,392 ping (173417.52 square
Scale of Factories   meters); floor area of the Zhangjiagang factory- 80,707
                     ping(267140.17 square meters)
Number of
                     1,392 in Taiwan; 1,214 at the Zhangjiagang factory
Employees

Capacity(maximum     19,000 tires/day at the Xinfeng factory; 19,000 tires/day at the
/day)                Zhangjiagang factory

                     (1) All-steel light truck tires
                     (2) High-performance radial car tires, snow tires, RV tires and others
Main Products
                     (Over 1,000 specifications available)
                     (3) Heavy motorcycle tires
                                                                                              3
Business Ratios      Exports account for 91% of total. (Taiwan: 4% / mainland China: 5%)
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Hsin-Fung Factory

   Established in 1973, the factory building is spacious with a refinedenvironment.

   A total of NT$12.6 billion has been invested.

   The land area is more than 52,000 ping(173417.52 square meters). Currently, approximately 25,000
    ping(82750 square meters)of building area has been constructed. The factory is located on Xinxing
    Road in Xinfeng Township, Hsinchu County, adjacent to a national highway interchange.

   An automated warehousing system officially launched in 2017, setting a new course for automation.
                                                                                                            4
   Products include car tires, light truck tires, snow tires, heavy motorcycle tires, etc. Daily maximum
    production capacity is 19,000 tires.
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Zhang-Jia-Gang Factory

•   Establishment approved on September 9, 1997.

•   The registered capital amount is US$143.58 million. A total of US$296.53 million
    has been invested. Production began in September 2003.

•   The land area is 80,707 ping(267140.17 square meters) and the factory building
    area is 42,312 ping (140052.72 square meters).

•   The factory’s main products are radial car tires (specifications of 12"-24"). Daily   5 5
    production capacity is 19,000 tires.
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Making the Most of Advantages
and Promoting Competitiveness

                Speakers:
                R&D Deputy General Manager:
                Mr. Peng Tiancheng

                                              6
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Foreword

Under the influence of trade competition and cooperation between the United States and
China, the situation of excess tire supply in China tends to be serious.
Coupled with the uncertain global economic outlook, major car markets are showing
weak sales growth.

Despite the current chaotic global situation, Nankang Rubber Tire will better extend the
advantages of new product development and continue to create blue ocean strategy.

Meanwhile, seeking breakthroughs from niche markets, quickly respond to market
demand, and providing the highest quality products to customers , the company aims to
achieve its goal of sustainable development, while earning maximum profits.

                                                                                           7
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Extending the advantages of new products

    Own band
•   Motorsport Series
     • NS-2R and AR-1 semi-slick series are continue selling well in Europe, and also
        transcend to United States, Australia, japan etc.
     • The SL-1 series is poised for supplying the higher level car racing events.
•   Electric Vehicle Tires
     • The new generation EV tires - NEV1, with requirements performance including "low
        noise/low rolling resistance/extended wear mileage/instant power increases” , has
        entered the final testing phase and ready to be released.
•   Hobby Tires
     • The HT/AT/MT series are the main series of SUV/CUV tires, targeted on the growing
        demands of the hobby Tires around the major world’s market.
•   Winter Tires for Europe
     • Europe is the primary sales market for Nankang tires, winter tires have always been
        the main products.
     • The next generation winter tires, including SV-4, ICE-2, and SW-9 are now entering
        the test phase.
•   Winter Tires for Japan
     • In response to the Japanese market’s favorite for Nankang winter tires, we are
        launching a fourth generation Winter tire development program that continues to
        reinforce the sense of identity in Japanese customers                                8
Nankang Rubber Tire Corp., Ltd. 2019 Investor Conference - Stock code: 2101
Extending the advantages of new products

    OEM band
•   High-load SUV/CUV Summer tires
     • Expected to be released in Q2, 2019, with a total of 29 specifications, aimed at the
        REP market in North America.

•   Highway Terrain(H/T) Summer Tires
     • Expected to be released in 2020, a total of 34 specifications, with the first creation of
        the industry “stereoscopic white font design”, target on the North and South American,
        Australian and New Zealand consumers who love holiday leisure activities.

•   All-Terrain(A/T) Summer Tires
     • Expected to be released in 2020, a total of 20 specifications, with the first creation of
         the industry “stereoscopic white font design”, target on the North and South America,
         Australian and New Zealand Players-Level consumers.

•   Level C/A Summer Tires of the “EU Tyre Label”
     • In order to match up the European standard grade, the company will develop new
       rubber material formulations with suppliers, and strengthen the wear-resistance to
       create a flagship product.

                                                                                                   9
Four Strategies to Improve the Competitiveness

                             Boosting brand identity with motorsport
Increasing Brand Power       Continue to optimize the performance rating label
                             Increasing product value with technical reports

                             Introduction of smart production system
Increasing Productivity

                                                                                    ition!
                             AS/RS → building/curing process → all process

                                                                                   Trans
                             Sales analysis
       Big data              New product development analysis
                             Business strategies analysis

                             Vertical implementation and horizontal development
                             Removing mediocrity, marching toward the
   Reform the                 remarkable way
   corporate culture         Plan to cultivate the responsible and pragmatic
                              talent
                                                                                             10
Nankang Rubber Tire Transitions For the Next 60 Years

In 2019, Nankang entered the 60th year since its founding.

Despite a slight twists and turns, but so far going, Nankang is continuously pursuing the goal

of sustainable development now, and this year, we celebrate this valuable time with the great

successful operating results.

But faced with a rapidly changing market environment, Nankang Rubber tire must transition

and make qualitative changes.

Led by the central ideas of "professionalism, refinement, and depth" as well as the

management concept proposed by its chairman of "doing it right the first time," Nankang

Rubber Tire's competitiveness is continuously promoting the cultivation of core technological

strengths, while deepening innovation.

By rapidly responding to the market and quickly satisfying demand, Nankang will "always run

faster than its opponents" and establish an "irreplaceable" position in the market as it moves
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into the next 60 years of progress.
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