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

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

3. 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。

4. 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

5. 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

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

7. Shareholders structure ÷nd 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. Appendix: About silicone

14. 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

15. 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

16. The production of Silicone
recycle

18. THE END
Q&A