Operations & Prospects Nan Ya Plastics Operations & Prospects March 2011

Agenda Page Overview ‥‥‥‥‥‥‥‥‥‥‥‥‥‥ 2∼6 Strategy & Competitive Advantages‥‥‥ 7∼8 Operating Performance ‥‥‥‥‥‥‥‥ 9∼10 Investment Income ‥‥‥‥‥‥‥‥‥‥ 11 Capital Expenditure ‥‥‥‥‥‥‥‥‥ 12 Capacity & Expansion ‥‥‥‥‥‥‥‥ 13∼19 Financial Ratio ‥‥‥‥‥‥‥‥‥‥‥ 20 Comparison of Top 5 Competitors‥‥‥‥ 21∼24

Overview Highlights Member of the Formosa Plastics Group (FPG) The 6th largest private company in Taiwan in terms of market capitalization Annual revenue of US$ 7 billion with 4 major businesses: sales breakdown - 15% in plastics, 19% in electronic materials, 16% in fibers, and 47% in Chemicals Market capitalization of US$ 23 billion 51 manufacturing plants in Taiwan, 23 manufacturing plants in China, 4 and 3 manufacturing plants in USA and Vietnam respectively. Leading market positions World’s #1 manufacturer of secondary plastics World’s #1 manufacturer of copper clad laminates World’s #3 producer of polyester fibers

Overview History China Investment (Plastics) 2003 Vietnam Investment (Polyester) Polyester staple PU leather PP film Glass fiber yarn, cloth and POY 6th Naphtha Cracker Project 1998 2007 BPA-4 & EG-4 startup 2009 Expanding scale of CCL in China 1969 1974 1981 1985 1994 1958 1971 1976 1984 1989 1995 2000 China Investment (Electronics) China Investment (Polyester) 2004 2008 2010 China Investment (Chemicals) Textured yarn PVC Rigid film Incorporation First PVC sheet production PCB & CCL Nan Ya America established Nanya Technology established Glass fiber-3 & Glass fiber cloth-3 in China startup 1950’s - 1960’s : Production of PVC secondary plastics in Taiwan 1970’s : Began manufacturing polyester fiber, expanding scale and varieties of plastics processing products 1980’s : Entered electronics business, growth in polyester and plastics 1990’s : Plastics and polyester facilities in the US commissioned, manufacturing of plastics initiated in China, construction of specialty chemicals in No. 6 Naphtha Cracker Project completed, and subsidiary for DRAM manufacturing stated production 2000’s : Production facilities for electronic materials in China commissioned 2007’s : BPA-4 and EG-4 plant of the phase-four expansion project in Mailiao complex started operation 2008’s : Glass fiber & glass fiber cloth of phase-three expansion in China started operation 2009’s : Expanding scale of CCL in China and started mass production in Hui Zhou 2010’s : Chemical products including BPA & DEHP investment in China

Overview Corporate Structure Plastics I Plastics III Chemicals II Electronic Materials Engineering Plastics II Chemicals I Chemicals III Polyester Fibers CCL Epoxy Resin Glass Fiber Cloth Copper Foil STN LCD PVC Sheeting Rigid PVC Film PP Paper PU Leather PVC Pipes BOPP Film Engineering Plastics BPA 1.4 BG PVC Stablizers Switching Gears Rollers Molding Equipment Factory Equipment SMC Doors Vinyl Windows Door Frames PA 2EH DEHP DINP DIDP EG Filament Staple Chips Film Dyeing Finishing Dry Film Plastics Chemicals Electronics Polyester Others

Overview Subsidiaries

Overview Subsidiaries (Hong Kong)

Product Diversification Strategy Backward Integration 6th Naphtha Cracker Polyester products (e.g. EG) Electronic products Secure stable and low cost raw materials Product Diversification High margin products High value-added chemical & polyester fiber Electronic products Increase profitability and market share Rising weight of chemical and electronic products to maintain profitability Transform into Chemical and Electronic Products Enhancing investment of chemical and electronic productions (e.g. MA, CCL (Kunshan) and Nan Ya PCB) Support relocation of downstream customers and profit from rapid growth in China and Vietnam Establish Production Base in China and Vietnam PVC sheeting, leather, pipes, fittings & PU leather Electronic products Polyester fiber As a main product base, Taiwan mother company also formed as a R&D center, supporting required technology to overseas investee companies Optical PET film for backlight module, anti glare PET film for LCD Speciality chemicals (Nonyl Phenol free and 3P free Ba/Zn Stabilizer, IC Encapsulation Epoxy) PCB material (A glass fiber desizing can improve the efficiency of the components of sizing, high thermal-conductive resin composition for PCB) Strengthen R&D Capability

Competitive Advantages Economies of Scale World’s #1 manufacturer of secondary plastics and CCLs World’s #3 producer of polyester fiber Customer Oriented Expansion in line with the needs of our customer and market Backward Integration Purchase PVC resin and PTA from FPC and FCFC Self-production of EG, copper foil, glass fiber cloth, epoxy resin and DEHP Purchase glass fiber from PFG Completely backward integration from PCB to glass fiber in the world Self-Sufficient in Power Reduce manufacturing costs and secure power supply Using Financial Strength Lower cost and provide readily available financing Internal Construction and Engineering Departments Lower capital expenditures while integrating research with manufacturing to improve production efficiency and predictive maintenance Focused Management Long-term strategy with a flexible approach (TQC,TPM,ISO)

Operating Performance Y2010 Result (Unaudited) Y2010 operating profit was NT$ 26,491 million, up NT$17,781 million from NT$8,710m in Y2009 (+204.1% YoY); operating performances of major products: Plastics: Y2010 operating margin 5.2%, slightly down YoY from 7.3% in Y2009. Electronic Materials: Y2010 operating margin 13.9%, up 7.0% YoY from 6.9% in Y2009 Benefiting from recovery in the electronics industry and raw materials price rise, prices of all electronic materials rose significantly Strong demand helped to increase utilization rate and reduce unit fixed cost Polyester: Y2010 operating margin 10.9%, up 12.2% YoY from -1.3% in Y2009 Demand increase from cotton shortage, consumption power increase in China, in addition to product mix improved and portion of high value-added products expanded, for example, sales of polyester film which are applied to LCDs and solar panel increased significantly Set up a performance improvement team to establish standard production lines by implementing strict problem solving with productions to increase efficiency and performance as well as to reduce cost. Chemical Products: Y2010 operating margin 16.0%, up 10.6% YoY from 5.4% in Y2009 With soaring ethylene price, plenty of maintenance in the industry, and strong demand from downstream polyester buyers, EG price rose significantly and operating margin could reach 30%+ in Y2010. Profits from DEHP and BPA increased due to product price increase more than raw materials cost raised and better operating rate on the back of improving demand

Capacity/Expansion – Plastics Unit: US$1,000

Capacity/Expansion - Plastics (China Investment Part I) Unit: US$1,000

Capacity/Expansion - Plastics (China Investment Part II) Unit: US$1,000

Capacity/Expansion – Polyester Unit: US$1,000

Capacity/Expansion – Electronic Materials Unit: NT$1,000

Capacity/Expansion – Electronic Materials (China) Unit: US$1,000

Capacity/Expansion – Speciality Chemicals (Taiwan) Unit: US$1,000

* Nan Ya’s EG capacity of 1,770 thousands tons per year is theoretical capacity. Actual EG capacity can reach 2,080 thousand tons per year。