QST International Corp.

2019/08/20

GROUP

QST International Corporation

ABOUT

US

INDUSTRY NUMBER

From A Trader to F.S.P

3

1985 2019

2008 Prompt Direct

Delivery

2014 Goble F.S.P 2006 Local by Local

Strategy

4 4

Global Footprint

Distributors & Auto

OEMs

Auto OEMs & Tiers

20Auto OEMs & Non Auto

30% 30% 40%

Global market by local manufacturing, only but the shares from Taiwan.

5

Global Full Service Provider

Global Penetration

Ratio ≅5%

One of Global

Top 10 F.S.P

Global Production

> 100,000 mt

Fasteners + Metal

working

Global Production > 100,000 mt, Global Penetration Ratio

≅5%, One of Global Top 10 Full Service Provider, and Boltun

Group/QST International Focus on Fasteners +Metal working

as a F.S.P.

Global Production > 100,000 mt,

Global Penetration Ratio ≅5%, One

of Global Top 10 F.S.P.

6

Numbers from Operation

20m+ Euro revenue in

European market since M&A

Stable EBITDA margin 15%+

Consolidated YoY 4.8% in 2018

Operating cash flow ≈ 1billion+

7

Operation Results_4 Vessels

(NT mil) (RMB mil)

(EUR mil) (RMB mil)

2,306

2,598 2,570 2,457 2,391

2,668

1,219

2013 2014 2015 2016 2017 2018 2019Q2

Revenue of QST

468

551 545

661

770 823

351

2013 2014 2015 2016 2017 2018 2019Q2

Revenue of Xiamen

76 80 84 88

95 97

48

2013 2014 2015 2016 2017 2018 2019Q2

Revenue of ESKA

332 341 317 327

380

327

144

2013 2014 2015 2016 2017 2018 2019Q2

Revenue of Suzhou

8

Consolidated Numbers

3,841 3,759 3,937

6,839

9,676 10,016

10,345

10,840

4,968

-0.54

1.46

2.06 2.15

3.23

3.98

5.41 5.51

6.98 5.43

-0.60

0.40

1.40

2.40

3.40

4.40

5.40

6.40

7.40

-

2,000

4,000

6,000

8,000

10,000

2009Y 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018Y 2019Q2

Revenue EPS

359

19

165

437 324

565

1,566 1,511

757

1,721

1,432

Cash inflow from operations

9

Automotive, Future

Share

GROUP

QST International Corporation

Electrical

Connected

Autonomous

Light weight

10

Automotive Segment Attractiveness

Exhaust system Steering

Fuel System

Breaks

Interior

Axles

Suspension

Climate Control

Transmission

Frame

ICE

Body

Seats

Electric Drivetrain

Battery/fuel Cell

Wheels & Tires

Electronics

Infotainment & Com.

ADAS & Sensor

Risky

Attractive

700B

600B

500B

400B

300B

200B

100B

1,200B*

-100B

-200B

Risk Traditional

Content/Vo

lume

AEV

Content/Volu

me

Aftermarke

t/Service

Incremental risks and opportunities

Global automotive volume and content opportunity($B

USD)

*2017 supplier market size projected to be $1,200

B Source: 2017 Global Automotive Supplier Study

11

Autonomous, Connectivity

China

India

Korea

U.S.

Japan

Germany

79%

76%

60%

47%

36%

35%

Consumers who feel that increased vehicle connectivity

will be beneficial

U.S.

Japan

Korea

India

Germany

China

Consumers who agree that AVs will not be safe

50%

47%

74%

50%

57%

79%

49%

54%

81%

48%

47%

64%

47%

45%

72%

25%

26% 62%

2019 2017 2018

12

Frequency of Ride-hailing Usage

87%

73%

55% 50%

25%

15%

9%

20%

22% 31%

32%

38%

4% 7%

23% 19%

43% 47%

Japan Germany U.S. Korea China India

2017

Never Rarely 1 + per week

86% 80%

61%

42%

17% 10%

11% 18%

34%

46%

69%

64%

3% 2% 5% 12% 14%

26%

Japan Germany U.S. Korea China India

2019

Never Rarely 1 + per week

13

Emerging

OEM’s

Specialty OEM’s

Tesla

Chinese OEM’s

BAIC, BYD

Tech Giants

Consumer

Electronics

Apple

Software

Google

Mobility

Service

Providers

E-hailing

Uber, Didi

Car Sharing

Zipcar

Tiers

ZF-TRW, Bosch, Denso,

Magna, Continental, etc.

Auto OEM’s

VW, Toyota,

Nissan-Renault, GM,

Ford, Hyundai-Kai,

Honda, FCA, etc.

Conventional Auto Industry

A complex market landscape ever! Re-define & re-invent a car. Multi-fronts competitions. Business model game change.

What’s Happening to Them ?

14

GROUP

QST International Corporation

Invest in Our Future

Accelerating

Complex and

Larger Market

Heading for

Emerging Countries

Anti-

Globalization

Light weight

15

Appendix-1 Financial Results

NT$mn 2014 2015 2016 2017 2018

2019 Q2

Growth YoY

2015 2016 2017 2018 2019Q2

Sales Revenue 6,839 9,697 10,016 10,345 10,840 4,968 41.8% 3.3% 3.3% 4.8% -10.1%

Gross Profit 1,618 2,324 2,467 2,565 2,404 899 43.6% 6.2% 4.0% -6.3% -27.1%

Operating Profit 580 870 882 1,122 820 144 50.0% 1.4% 27.2% -26.9% -67.2%

Income Before Tax 683 945 977 1,216 945 140 38.4% 3.4% 24.5% -22.3% -72.9%

Net Income to Parent Shareholders

331 494 501 689 627 111 49.2% 1.4% 37.5% -9.0% -64.1%

EPS(NT$)* 3.98 5.41 5.51 6.98 5.43 0.95 35.9% 1.8% 26.7% -22.2% -64.7%

Gross Margin 23.7% 24.0% 24.6% 24.8% 22.2% 18.1% 1.3% 2.8% 0.7% -10.6% -18.9%

Operating Margin 8.5% 9.0% 8.8% 10.8% 7.6% 2.9% 5.8% -1.8% 23.2% -30.3% -63.5%

Net Margin** 4.8% 5.1% 5.0% 6.7% 5.8% 2.2% 5.3% -1.8% 33.2% -13.2% -60.1%

16

Appendix-2 Product Mix

16

17

廈門恒耀

Xiamen Boltun Nuts & Machined Parts Plant

廈門同恒

Xiamen Boltec Bolts, Nuts & Auto Parts Plant

台灣欣富山

SFS Industry Small Screws Plant

蘇州友匯

Suzhou Yeswin Bolts & Screws Plant

聯信檢測

Q-Lab Inc. Testing & Calibration Lab

蘇州聯信

Suzhou Q-Lab Inc. Testing & Calibration Lab

廈門安恒

Xiamen Bolwir Wire Processing Plant

廈門民恒

Xiamen Bolmac Fastener Machinery Plant

友匯貿易

Yeswin (Shanghai) VMI & Distribution Provider

蘇州友丰

Suzhou Tech-Form Hydraulic Nut Plant (JV)

Newco Thailand Logistics Warehouse

Clico USA Logistics Warehouse

ESKA Automotive Bolts & Special Parts Plant

F. Sieber Tools Tooling & Dies Plant/Design

保安廠

Pao-An Plant Bolts & Screws Plant

Suzhou Xiamen Germany Taiwan U.S.A.

Thailand

100% 100% 85.71% 100%

USA Boltun USA Real estate

廈門艾司卡

Xiamen ESKA Alu Fastener Plant

Appendix-3

18

Appendix-4 Steps Forward