Topco Technologies (3388 ) DATE：2019/3/12

OUTLINES Introducation future perspectives Operation status & financial performace Industries analyais &applicatons of Silicone future perspectives

briefs company： Topco Technologies foundation： 1981 IPO date： 2006/2/22 Code： 3388 Capitals： 740 NT millions Chairman： Pan, Chen-Cheng CEO： Chang, Sheng-Ho Main business： Silicone and related materials No any relationship with Topco scientific Corp.(5434)

Locations

Products & industry characteristics Market overview The chemical polymers is based on SiO2. Superior chemical characteristics:environmental/cold and heat resistance/flame resistance/excellent chemical stability characteristics Global main makers：Dow Sil(the former was called Dow Corning)、Momentive(now merged by KCC group)、Shin-Etsu Chemical、Wacker and so on. Main makers in China :Blue star(Elkem group)、Wynca chemical、hui-tian new material、Dongyue etc Market overview

Main business Total solution: materials +Equipments Focus on selling of Silicone and other key materials Total solution: materials +Equipments The main acting lines： 現有產品線--信越化學、Colcoat、Sika、Konishi、住友、不二化成、Ushio設備等

Characteristics of industry Widespread for all industries low volitality, almost no affection by bussiness cycles Lots of clients Over 10 thousand clients & diversity Continuous new applicatoins Always developing new applicatons

Financial information of 2018 and 2017 NT（thousands） 2017 % 2018 Growth rate Sales 7,672,336 100.00% 8,544,667 11.37 % Margin 1,372,415 17.89% 1,644,651 19.25 % 19.84 % Operating income 496,995 6.48% 645,916 7.56% 29.96 % Income before tax 476,413 6.21% 653,359 7.64% 37.14% Income after tax 350,138 4.56% 463,242 5.42% 32.30% EPS (NT） 5.65 7.41

Future perspectives make response to the Sino-US trade conflict Total solutions for clients services Developing new markets/clients make response to the Sino-US trade conflict Developing new applicatons and high value-added materials

Appendix

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 is silicone from? Electricity C SiO2 Metallic Silicon Silicone SiO2 + C → Si + CO2 SiO2 + 2C → Si + 2CO SiO2 Metallic Silicon Methanol, HCl, Hydrolysis, Polymerization Silicone

Production methods of Silicone recycle