TOPCO,Code 3388 Presentation CEO Dr. Chang 2017/8/22 1

Outlines Company profile Operations locations Group investment structure Shareholders structure & dividend policy Financial information Main and core business Future growth momentum Appendix

Company History 1981 Topco was established by Mr. Chun-Chien Wang, the honorary chairman of the board, and the entrepreneurial team as “Topco Trading Co., Ltd.”. The core business is to sell and distribute silicone products that are mainly manufactured by Shin-Etsu Silicone Taiwan and Japan. 1987 Topco cooperated with Japanese Shin-Etsu to establish Shin-Etsu Silicone Taiwan Co., Ltd which became the first base of producing Silicone Gum compound in Southeast Asia. 1990 Topglow Trading Co., Ltd. was founded in 1990, as the agency for Japan's Shin-Etsu FILM and BOPP base materials. 1992 Hong Kong T.T.C. Co., LTD. was founded and handled the sale of silicone in Hong Kong and the Southern China. 1994 Topview Technology Corp. was established for the design and production of surveillance camera peripherals. 1997 Topco Trading (Shanghai Pu-Dong New Area) Co., LTD. was founded and handled the sale of silicone in the Northern and Eastern China. 2001 Topco (Guangzhou) Trading Co., LTD. was founded and handled the sale of silicone in the Southern China. 2004 Topco Trading Co., Ltd and Topview technologies were merged and used ” Topco Technologies Corp.” as its new brand name and recognition. 2006 Topco Technologies Corp. was officially a publicly traded company (IPO) listed on the Gretai Securities Markets. Topglow Trading Co., Ltd. was group-merged with Topco. 2007 Beijing branch of Topco Trading (Shanghai Pu-Dong New Area) Co., LTD. was founded. 2010 The electronics group was spinoff from Topco as new organization named "Topview Optronics Corp." 2011 Suzhou, Ningbo and Xiamen offices were founded for expanding the Mainland China market share and channel. Conduct seasoned equity offerings, the paid-in capital after increased became NT$620,000,000。

Company History 2012 Sold out all shares of spin-off company　(Topview Optronics Corp) 2014 issued the restricted stock for employees. ( 2,400,000 shares) and the capital was increased to NT$ 644 Million 2015 Establishing the branch office of Topco Vietnam and Topco Indonesia

Locations Topco HQ Topco Shanghai Topco Guangzhou Topco Hong Kong Taichung Branch Ningbo Branch Topco Shanghai Suzhou Branch Xiamen Branch Beijing Branch Topco Hong Kong Topco Guangzhou

Group Investment Structure General trading Sllicone related TOPCO Holding HK (100%) GZ (100%) SH (100%) Topglow (65%) branch Indonesia Vietnam branch branch branch

Shareholders structure &dividend policy Dividend in the recent 5 years Main shareholders & employees owns about 50% Shin-Etsu owns about 4.5% Dividend policy :cash and nearly no stock dividend Year 2012 2013 2014 2015 2016 EPS(NT) 5.39 5.42 5.14 4.68 Cash 5 4 　4 Stock

Consolidated income statement in recent 3years & 2017 H1 Unit：NT million 2014 2015 2016 2017 H1 YOY Sales 7,519 7,113 7,233 3,631 7.7% Margin 1,190 1,163 1.164 627 18.6% Operating income 431 388 380 236 36.1% Income before tax 450 392 400 210 20.1% Income after tax 319 290 150 17.5% EPS after tax(NT dollar) 5.14 4.68 2.43

Key ratios for the recent 3 years and 2017 H1 項目 2014年 2015年 2016年 2017年H1 margin(%) 15.83 16.33 16.08 17.26 O.I.(%) 5.73 5.45 5.26 6.50 Days collection of A/R 84 90 Days sales of inventory 46 47 41 45 ROA(%) 8.01 7.08 7.03 7.13 ROE(%) 11.09 9.83 10.31 10.77 Net profit(%) 4.54 4.35 4.25 4.24 Net value per share(NT) 47.03 47.06 45.81 43.60

Main and core business Special materials(Silicone & related materials)+equipment(total solution for clients) increase sales channels(especial southeast Asia) Develope new products and new clients

Future growth momentum The demand of Silicone is highly correlated with economic growth New applied material in new fields EX:for car parts adhesive and injection、waterproof material smart phone、Wearable device、medical、environment friendly material New clients and markets Develop high value-added materials and products

Future growth momentum Future focus industries: 1.Car field: electrical automobile/battery/senor/green tire/touch panel/LED Lamp VOC free adhesive… 2.Medical filed: mask/silicone tube/medical tape… 3.Cosmetics materials

Appendix: About silicone

Milestone of Silicone industry 1863-1949 Dr. Frederick Stanley Kipping (Father of silicone, Grignard reaction) 1909-2002 E.G. Rochow started industrial production (GE, direct process, 1940 ) 1953/3/31 First silicone production in Japan Shinetsu Chemical (Bought Patent from GE) Originally developed for military and aerospace From NASA HOMEPAGE B-29 bomber in Word War II 1969/7/20 That’s one small step for a man, one giant leap for mankind

How Silicone was made? Electricity C SiO2 Metallic Silicon Silicone SiO2 + C → Si + CO2 SiO2 + 2C → Si + 2CO SiO2 Metallic Silicon Methanol, HCl, Hydrolysis, Polymerization Silicone

The production of Silicone recycle

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