1. Topco Technologies (3388 )
DATE：2018/8/21

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

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

4. Locations

5. Products & industry characteristics Market overview
The chemical polymers is based on SiO2.
Superior chemical characteristics:environmentally/cold and heat resistance/flame resistance/excellent chemical stability
characteristics
Global main makers：DowSil(the former was called Dow Corning)、Momentive、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

6. 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

7. 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 applicatoins

8. Sales region & appliction fields

9. Financial information of 2018 and 2017
NT（thousands）
2017 %
2016
Growth rate
Sales
7,672,336
100.00%
7,223,702
6.21%
Margin
1,372,415
17.89%
1,163,737
16.11%
17.93%
Operating income
496,995
6.48%
380,592
5.27%
20.72%
Income before tax
476,413
399,634
5.53%
19.21%
Income after tax
350,138
4.56%
290,044
4.02%
EPS (NT）
5.65
4.68

10. Financial information of 2018 and 2017 H1
NT（thousands）
2018H1 %
2017H1
Growth rate
Sales
4,298,053
100%
3,631,179
18.36%
Margin
858,130
19.96%
626,710
17.26%
36.93%
Operating income
331,325
7.71%
235,920
6.50%
40.44%
Income before tax
341,816
7.95%
209,822
5.78%
62.90%
Income after tax
233,243
5.43%
150,515
4.15%
54.96%
EPS (NT）
3.76
2.43

11. H1 Status and H2 Perspectives
H1 Profit growth rate YOY 54% due to:
demand > supply
Material prices are still continuously rising
New developed clients and products create betters sales and profit
H2 Perspectives:
Material prices will still continuously rise but the the rising rate maybe slow.

12. Sales of the recent 6 quarters
NT thousands

13. EPS of the recent 6 quarters
2.00
1.76
1.42
1.80
1.21
1.22

14. Dividend policy
EPS vs Cash dividend

15. Silicone applications
medical
for Consumers

16. Silicone applications
Turbo hose

17. End-Products applications
Silicone and Life/ Silicone is everywhere.
【food】
PET package release agent/kitchen accessories
【housing】
insulating glass sealant with structural capabilities
Green Building Adhesive
【clothing】
Trademark LOGO
【transportation】
Parts for Battery Electric Vehicle
【Entertainment】
Wearable device/water-proof for smart phone

18. Consumer’s electrical devices
Growth momentum
Automotive
Medicals
Cosmetics
Consumer’s electrical devices

19. Future perspectives Total solutions for clients services
Developing new markets
Leader of special materials agent in Asia-Pacific
Developing new applicatons and high value-added materials

20. Appendix

21. Milestone of Silicone industry
Dr. Frederick Stanley Kipping (Father of silicone, Grignard reaction)
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

22. 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

23. Production methods of Silicone
recycle