1. Market Trend and Technology Development of Adhesives in Taiwan TAIWAN SYNTHETIC RESINS & ADHESIVES INDUSTRIAL ASSOCIATION Chairman Ho-Ching Huang 26 SEPTEMBER 2013 2015/5/231

2. Outline 2015/5/232  Adhesive Market Analysis in Taiwan  Outlook of Synthetic resin and Adhesive industry in Taiwan

3. Adhesive Market Analysis in Taiwan 2015/5/233

4. 2009-2013(e) Sales Volume of Adhesive in Taiwan 2015/5/234  CAGR during 2009-2012(e) is 2.18% Unit: Metric Ton

5. 2009-2013(e) Sales of Adhesive in Taiwan 2015/5/235  CAGR during 2009-2012(e) is 7.60% Unit: Million NTD

6. 2011 and 2012 Sales Volume by Adhesive Types 2015/5/236 Adhesive type20112012 Formaldehyde38,73238,738 Solvent-based22,32521,730 Reactive130,764127,414 Hot -melt39,08040,530 Water-based147,470152615 PSA60,21063,800 SAELANT5,6005,800 Total444,181450,627 Unit: Metric ton

7. 2011 and 2012 Sales by Adhesive Types 2015/5/237  The average price of adhesives fell from 83 NTD/kg to 80 NTD/kg in 2012 Adhesive type20112012 Formaldehyde2,1492,153 Solvent-based1,7501,444 Reactive16,69915,779 Hot -melt4,7874,774 Water-based6,6796,843 PSA3,8843,707 SAELANT1,1141,234 Total37,06335,934 Unit: Million NTD

8. Statistics of Adhesives import & Export in Taiwan 2015/5/238 2011 (Unit: Metric Ton. Million NTD) Item Import Export AmountValuePriceAmountValuePrice Hot-Melt2,39749120526,4513,257123 EVA4,5201683753,4001,61830 Other Adhesives73,42412,240167110,69213,383121 Total80,34112,899161190,54318,25896 2012 (Unit: Metric Ton. Million NTD) Item Import Export AmountValuePriceAmountValuePrice Hot-Melt2,40246419327,9903,304118 EVA5,5431763257,4671,81032 Other Adhesives25,79311,271437106,82812,006112 Total33,73811,912212192,28517,12089

9. Summary of Adhesive Market 2015/5/23 9  Sales volume of adhesive in Taiwan is quite stable and the price is sensitive to oil price  Water-based adhesive meet more customer’s requirement and its sales volume rose in 2012

10. Outlook of Synthetic resin and Adhesive industry in Taiwan 2015/5/2310

11. Market and Technology Trend of Adhesive Industries in Taiwan 2015/5/2311 Future Solvent-type product Water-type product High solid content product Radiation-curing product Renewable raw material Price-Oriented Past Emerging Application In-depth Processing Cooperation with Costumers High Value-added Patents Protection Specialties Environmental-Friendly Value-Oriented Mass Production Commodities VOC ↓ Toxicity ↓ Residual monomer ↓ Footprint ↓ 3D Printing Lignoxy - LBP, lignin-based polymer technology Encapsulant OCA

12. High Value-Added Raw Materials from Petrochemicals and adhesive 2015/5/2312  “High Value Petrochemical Industry Promotion Office (PIPO)” under MOEA was established in 12.31 2011.  http://www.pipo.org.tw/eng/ http://www.pipo.org.tw/eng/ Basic Petrochemical Products Element Materials Product Elements High-tech Products Supply Chain Broken High Gross Profit Rely on import for long while monopolized by foreign companies Not sufficiently used Material, ex. C5 Six Emerging Industries New Material: ex.Bio-based Material Replacement/Local Material

13. Outlook of Policies and Market of Adhesive Industries in Taiwan 2015/5/2313  Products of high value-added petrochemical raw material, such as C5, C9 or bio-based chemicals, is developing  FTA and import-substitute are supporting policies of domestic adhesive policies  Development of high-tech and environmental issues have huge impact on adhesive innovation  R&D and technology cooperation to create product differentiation and increase product value-added  Radiation-curing resins, water-based resin and other functional products have great potential in the near future

14. 2015/5/2314 THANK YOU VERY MUCH! 有難うございました 謝謝 감사합니다！

15. 2015/5/2315 Appendix

16. Sales Status -1

17. Sales Status -2