Tex Year Industries Inc. ‧Stock Code 4720 · 3/40 4720 Company File TEX YEAR TEX YEAR INDUSTRIES INC. Stock Code：4720 Established on: June 28, 1976 Listed to Taiwan Share Market：June

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Tex Year Industries Inc. ‧Stock Code 4720

Reporter: Donald Hsiao (CEO)

December 21st , 2018

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Company Profile Operating Performance

Global Market and Product Trend Global Allocation

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Company File

TEX YEAR INDUSTRIES INC. ■ Stock Code：4720

■ Established on: June 28, 1976

■ Listed to Taiwan Share Market：June 24, 2015

■ Founder：Shih-Kuang Lue、Chin-Tsung Hsiao

■ Chairman of the Board：Chi Chen Lin

■ Chief Executive Officer : Hsiang Chih Hsiao

■ Capital: NTD $885,767,090

■ Address: No.9, Wuquan 6th Rd., New Taipei Industrial Park, New Taipei City 24889,Taiwan (R.O.C.)

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Our Core Values

Eco-Friendly

Implementation of Social Care Promoting Environmental Protection

Trusted

International Certification Recognition Implementation of Green Supply Chain

Innovation and Customer Values Innovative Technical Services

Innovative

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Bonding Dedicated People Gluing Sincere Corporates Creating a Wonderful Life

Our Vision

We Bond to Your Needs!

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Company Profile

Operating Performance Global Market and Product Trend

Global Allocation

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4720 TEX YEAR

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2015年1到11月 2016年1到11月 2017年1到11月 2018年1到11月

Other Product Special Chemicals Hot Melt Adhesive

2,215,891

2,562,175

2,948,495

2,367,477

2015 1-11 2016 1-11 2017 1-11 2018 1-11

Jan.-Nov., 2018

Group sales revenue analysis NTD thousand

15.08 % 8 %

7 %

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4720 TEX YEAR Jan.-Nov., 2018

Consolidated sales revenue-by region

241,462

813,002

1,080,975

195,261 231,477 221,191

802,963

1,402,325

250,916 271,103

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

美洲 亞洲 大陸 歐洲 其他地區

NTD thousand

2017年

2018年

↓-8 %

↓-１ %

↑30 %

↑17 % ↑15 %

2017

2018

Europe America Asia Mainland Others

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4720 TEX YEAR Jan.-Nov., 2018

Consolidated sales revenue -by product

Hotmelt Adhesive

77%

Special Chemicals

12%

Others 11%

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4720 TEX YEAR Jan.-Sep., 2018 Accumulated

Consolidated profit and loss

Item Amounts

Consolidated sales 2,403,310

Operating profit 15,917

Profit before tax 26,701

NTD thousand

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Company Profile Operating Performance

Global Market and Product Trend Global Allocation

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Hot Melt Advantages

Eco-friendly 100% solid

content Comply with

environmental regulations

Safe

Solvent Free

Fast

Automated process

Quick Curing

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Hot Melt Adhesive Global Market

Asia 16%

China 34%

Europe 24%

America 26%

Source: 2015 China Hot-Melt Adhesives Forum

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4720 TEX YEAR Demand for hot melt adhesives is

higher than GDP

Source: Exxon Mobil estimates

Regional growth (%)

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4720 TEX YEAR Global market size of Hot melt

adhesive ■ $7.3 billions in 2017

■ Expected to reach $10.2

billions in 2023 5.7% CAGR

Source：Global Information, Inc.

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PM2.5 threat

We are facing

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Environmental care & appeal

Green Cleanness

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In addition to dust, pollen, mold, air pollutants, volatile organic compounds (VOCs) are common in the air, also there are more than 900 kinds of gaseous chemicals and particulate substances which are less than 2.5 microns (PM 2.5). Air pollution keeps getting worse over the last few years. With the growing market and high function request, industry use or home use filter is the future trend.

Filter- Clean air industry

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Filter Air clean industry

Household

• Air purifier • Vacuum machine

dust bag

Commercial

• Auto air filter media

• Machinery filter media

• Air conditioning system

Industrial

• Air filter media

• Liquid filter media

• Filter cartridge

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4720 TEX YEAR Global Industrial Filter

Market Growth Scale

229.0

307.8

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

2016 2017 2018 2019 2020 2021

CAGR=6.1% USD

million

Major market growth in manufacturing development is in Asia-Pacific, Middle East, Africa region.

Global Market Report

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Filter industry Adhesive and filter media

Hot melt glue/PUR

Filter media

Adhesive

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Sales synergy of filtration media and glues

■ Sell MB filtration media

through the global

sales channels for

achieving synergy.

■ Become the 1st hot melt glue manufacturer who can also serve filtration media simultaneously.

JOINT OPERATION WIN-WIN COOPERATION

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Filter Industry MB filtration media

Market scale

Asia 120-150 Million m2/year China 100 Million m2 /year

Applications

High end W shaped mini pleat filters Auto Air filers Household filters

Leaders 3M HV Toray

20

10

1034

15

11

GlobalPleatableMBAirFilterMediaMarketSales(%)

Korean

Toray

HV

3M

Chineselocal

Others

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4720 TEX YEAR Tex Year Investment

MB High Efficiency HEPA Production Line

Tex Year Group’s re-invested company

C&M Filtration Solutions Limited

Jiangsu Factory

2018 July

Introduced world-class technology of Melt Blown filtration media

production equipment

Mass Production officially starts-supplying the global market

World’s best Tier -1 Quality。

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4720 TEX YEAR Global hot melt adhesive

consumption in air filter industry

Total sales EUR 350 million

Source：KMG(April 2015)/; The Global Adhesives Industry 2014-2019-A Multiclient Study

North America

35%

Asia Pacific

34%

Europe 31%

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Filter Industry Hot Melt Adhesive

Oil filtration

Water filtration

Air filtration

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We are facing Industry 4.0

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Digital panel Industry Trend

Energy Saving

Full automation Double-sided tape being

replaced Reduced labor cost and the

waste of releasing paper

Light-out factory & Smart factory

Adhesives replacing tapes greatly reduce the wasted materials from customized molds

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The evolution of digital panel

Wedge design Mini backpack design Flat panel design

Beautiful panel back Frameless Screwless

2015 2016 2018 2019F

Thin and frameless design

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Large LCD panel production capacity

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

2018F 2019F 2020F 2021F 2022F

USA

China

Japan

Korea

Taiwan

NTD thousand

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Industry chain

Module assembly Factory

Panel Factory's

Finish Product

application

Module assembly Factory

Large side panel TFT LCD Middle side panel TFT LCD

Notebook LCD TV Monitor

Mobil Phone Commercial Other

UV Adhesive

AB Adhesive

PUR Adhesive

Tex Year Product

Adhesive Solution

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What is UV Glue

Glue Cured by UV Light 100nm 400nm 780nm

X-Rays UV Light Visible light Infrared

UVC UVB UVA

Uacuun UV

Ultraviolet

C Ultraviolet B Ultraviolet A

280nm 320nm 400nm 100nm 200nm 300nm 340nm 365nm 380nm

UV Wavelength

365nm

Tex Year glue’s main curing wavelength is 365nm.

UVA carry less heat than other UV：less likely to hurt our skin.

UVA is more penetrative than UVB and UVC：it can cure the glue deeper.

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UV Adhesive advantage

Eco-friendly

Non-Solvent

Safe

Curing by nearly visible

light

Fast Automated Production

Cured within seconds

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Total solution for Digital Panel

111 UVAdh.

UV Adh.

UV Adh.

AB Adh.

AB Adh.

PUR

PUR

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Our Brands

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Company Profile Operating Performance

Global Market and Product Trend

Global Allocation

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We are facing .....

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Tex Year’s Multinational Supply Chain

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6 R&D Centers Factories Worldwide 9 90+ Distributors in over 90 Countries

Global Allocation

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© 2018 Tex Year Industries Inc.

We Bond to Your Needs!

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