上緯企業股份有限公司 · Listed in TWSE in 2010 2013 Awarded by Ministry of Economic Affairs as a “Offshore Wind Power Demonstration Subsidy ... Ati i L TkPi Source：TV

上緯企業股份有限公司上緯企業股份有限公司SWANCOR IND. CO., LTDSWANCOR IND. CO., LTD

Sustainable Sustainable EnergyEnergy

&&& & Environment Environment ProtectionProtection

Stock Code :47334733

DisclaimerDisclaimer

This document may be deemed to contain forward‐looking statements. These forward‐looking statements include, among other things, statements regarding future eventslooking statements include, among other things, statements regarding future eventsand the future financial performance of Swancor that involve risks and uncertainties.Readers are cautioned that these forward‐looking statements are only predictions andmay differ materially from actual future events or results.y y

Any projections in the document are based on limited internal and externalinformation currently available to Swancor, which is subject to change. Actual events orresults could differ materially and no reader of this document should assume later thatthe information provided today is still valid. Such information speaks only as of thedate of this document.

Readers shall rely on self‐judgment to makes any investment decision. Readers shallnot interpret the information in this document to be investment recommendations.

版權所有 @ 上緯企業 All Rights Reserved

1

Table of ContentsTable of Contentsab e o Co te tsab e o Co te ts

Company Profilep y

Core Products

Operations Analysis

Competitive Advantage

版權所有 @ 上緯企業 All Rights Reserved2

Vision & Strategy Vision & Strategy CompanyProfile

Become global leading supplier of Environmental

Become Asia’s main offshore supplier of Environmental

Protection & Wind Materialswind farm developer

Relying on China’s 135‐ Plan &“One Belt, OneRoad“ strategy to developChina and international market with systems manufacturers & design

Complete 2 demonstration wind turbines installation

In time. g

Institutes.

Include the Southeast Asia into The Greater China business circle

Establish self EPCITeam up with Asia EPCI

Continuing to expand new wind farm following with

Swancor is committed to becoming a globally respected leader in

China business circle to root in India & SEA

Develop industry key products (such as mold resin)

l h d

wind farm following with existing wind farm

Successful completionof project financingglobally respected leader in

environmentally aware composites development and green energy.

tying sales with wind resin sales & formulate the industry standards

Quick access to new markets

Launch construction company with Taiwan & Asia

entrepreneur


through a Standard laboratory

CompanyProfile MilestoneMilestone

Year Millstone

1993 With USD5,000 to start an enterprises to open the struggling history, with the world‘s top 500

1999 Founded Swancor Construction during 921 earthquake to repair Chung Tai Chan Monastery, Foguang Temple, Earth Mother Temple…etc.

2000 Founded Swancor(Shanghai) Fine Chemicals

2006 Founded Shanghai (Tianjin) Wind Power Material

2008 Listed in OTC in 20092008 Listed in OTC in 2009Listed in TWSE in 2010

2013 Awarded by Ministry of Economic Affairs as a “Offshore Wind Power Demonstration Subsidy” receivery

2014 Joint venture with Goldwind found Swancor (Jiangsu) New Materials

2015 Obtained German GL Standard Laboratory Qualification

2015 20 year PPA with Tai‐Power

2015 Completed the construction of Met Mast

2015 Joint ventured with Formosa Plastics founded Swancor (Jiangsu) Carbon Composites


Company

Group SubsidiariesGroup SubsidiariesCompanyProfile

Shanghai NewMaterialShanghai New Material(2000) HQ Swancor

Renewable EnergyChemical material marketing manufacture /Service center in China

Offshore wind farm developer

TienJin Wind Turbine(2007)

N T中國中心。Wind turbine material manufacture/service

Offshore wind farm developer

JianSu New Material(2015)

Nan TouFormosa Wind Power

Center in China

Taiwan & international chemical market f i d G(2015)

Wind turbine material manufacture/servicecenter in Chian

Wind power operation & maintenancemanufacture, service center and Group resource integration center

JiangSu Carbon Fiber(2015)

Carbon fiber manufacture/service center in


China

5

Core ProductsCore ProductsCompany Profile

Renewable EnergyOffshore Wind Energy

Composite MaterialsCorrosion Resistance Materials

Offshore Wind Energy

New Energy Development

Wind Blade Materials

Carbon Fiber New Materials



Company Profilep y

Core Products

Operations Analysis



Wind Blade MaterialsWind Blade Materials


CoreProducts Wind Energy Supply Chain Wind Energy Supply Chain

Wind

Raw materials Components WTG

Wind Farm

Develop‐ment

Offshore Wind farm

O&M

Blade Materials( Fiber/Resin)Steel

BladesGear boxGeneratorTower rack

Power converterControl systemTransformerForging

System design System Integration

Casting

Key MaterialsSuppliers

Offshore Wind Farm

D l

Offshore Wind Farm

O&M Service

Playing key role to Industry Key Chain

SuppliersDeveloper

O&M Service Provider


9

Development Strategy Development Strategy CoreProducts

China Wind Power Materials outlook for “13, 5” Plan China Wind Power Materials outlook for “13, 5” Plan (COP21 Promise: 20% of renewable energy in 2030)(COP21 Promise: 20% of renewable energy in 2030)Till 2014 is expected to accumulate fans about 110GW till 2020 estimates to 250GWTill 2014 is expected to accumulate fans about 110GW, till 2020 estimates to 250GW‐280GW ,2015 ~ 2020 estimates adding new 150GW‐170GW. In six years, to increase about 25GW per each year.

Swancor Wind Power Development StrategySource: China Wind Power Association

p gy• Enhance cooperation with GW on wind energy resin• Enhance cooperation with other system manufacturers• Upgrade technical service to attract new customer and increase existing customer procurement level• New product development cooperation• Develop international market base on existing China wind energy bases


• Develop international market base on existing China wind energy bases

Offshore Wind PowerOffshore Wind PowerOffshore Wind PowerOffshore Wind Power


Taiwan Offshore Wind Energy Taiwan Offshore Wind Energy CoreProducts

The Objectives & Strategies to promote on Taiwan‘s Offshore Wind Power By 2025, renewable energy up to 20%, the proportion of wind power and solar power will increase

significantlysignificantly.Future offshore wind power capacity increased from 4GW to 9GW ‐10GW, which is equivalent to

generating capacity of nuclear#1, nuclear#2 and nuclear#3 with a total investment amount of 1 trillion 600 billion.

Government PoliciesGovernment Development Schedule for Offshore Wind

Farm

Demonstration Wind Farm Developers

2015 15MW2020 320MW

*Promote demonstration projects in shallow water

*E h d i

Formosa IFuhai

Taiwan Power2020 320MW2025 1.52GW2030 4GW

*Enhance domestic technology and experiences

*Select 36 development zones in western Taiwan

Taiwan Power

By 2020, 3 demonstration wind farms are expected to zones in western Taiwan

(Depth of 0‐50 meters)

*Select 36 zone developers

complete with the capacity of each site at 100~128 MW.


3636 Development Zones Development Zones Core Products

36 Offshore Wind Development 36 Offshore Wind Development Zones will be ready by 2030Zones will be ready by 2030Zones will be ready by 2030Zones will be ready by 2030

Note：W: water depth, D: offshore distanceSource： Highlights of Offshore wind farm site planning application


p g pp(Date of announcement：2015.,July 2nd

Offshore Wind Power Formosa Offshore Wind Power Formosa 11Core

Products

• Location : 2~6 km form the seashore of Miaoli, Taiwan

• Area: 10.3 km2

• Capacity : 32 WTGS, 128MW128MW

• Water Depth: 15 –35m.

Phase II (30 sets) ‐ 2019

Miaoli x

Phase I (2 sets)‐ 2016

14


Business Model Business Model Core Products

Offshore Wind Power Development Business Model Offshore Wind Power Development Business Model

DEVELOPERDEVELOPERSwancorSwancor Renewable Energy Renewable Energy

CAPEXDevelopers benefit1. Successful

development fees2. Government grants

subsidy at $250 million and 15 yearmillion and 15 year interest free loan of $ 600 million

3. Earnings from involving in operating

Purchase &

Formosa I Wind PowerFormosa I Wind PowerTaiwan PowerTaiwan PowerCompanyCompany

Purchase &sale contract

WholesaleWholesale purchase rates Operating

Expenses20years

Operation & MaintenanceOperation & Maintenance


Corrosion Resistance Corrosion Resistance llMaterialsMaterials


CoreProducts Haze ImpactHaze Impact

A ti i L T k PiSource：TV Web

Anticorrosion Large Tanks, Pipes

Thermal power plant

Desulfurization

Dust Removal, Dehumidification

Chimneys

Smelt Electrobath…etc.

Others Yachts Sports Equipments Helmets andOthers Yachts, Sports Equipments, Helmets, and other safety shoes head


17

CoreProducts One Belt, One RoadOne Belt, One Road

Outlook for Outlook for Following with China policy 135‐ Plan, Swancor leverage existing resource and

Future Future ProductsProducts

g p y g gchannel to develop and promote new product, focus on undeveloped area in China and India/SEA market and establish factory in Malaysia.

Environmental improvement planDeveloping new fields of product

applicationOne Belt, One RoadOne Belt, One Road13,5 plan13,5 plan

• Infrastructure• New materials application • Energy development• Energy development• Energy facilities development

One belt, one road, the new economic policy is still in planning periodis still in planning period. After a comprehensive overall package of measures should bring greatbusiness opportunities


New Business New Business C b FibC b FibCarbon FiberCarbon Fiber


CoreProducts Carbon FiberCarbon Fiber

Phase Diagram Of Product Development Phase Diagram Of Product Development

Materials BusinessMaterials Business

Epoxy Carbon Fiber Woven

Plate

Thermoplastic Carbon Fiber Woven Plate

Wind Power Carbon Fiber Woven Plate

Automotive Carbon Fiber Woven PlatePlate Woven Plate Woven Plate Woven Plate


CoreProducts Carbon Fiber Industry Carbon Fiber Industry

150

Trend Diagram of Carbon Fiber Industry ApplicationTrend Diagram of Carbon Fiber Industry Application

20202020the output on Carbon fiber containing their products in the global automotive industry and related transportation will be broken at 10 billion US dollars

100

billion US dollarsThe output on carbon fiber products in China on wind power industry application will break 2 billion dollars

5050

01995 2000 2005 2010 2015 2020


運動器材航空用途產業用途

CoreProducts Carbon FiberCarbon Fiber

Composite Manufacture (Composite Manufacture (SwancorSwancor / Formosa Join Venture)/ Formosa Join Venture)

Estimate to complete onEstimate to complete onEstimate to complete on Estimate to complete on 2016.Q22016.Q2

22



Company Profilep y

Core Products

Operations Analysis



Operation PerformanceOperation PerformanceOperationAnalysis

Revenue (NTD)Revenue (NTD)2012：3.3 billion

EPS (NTD)EPS (NTD)2012：3 62

OperationOperation2013：3.5 billion2014：6.0 billion2015：9.7 billion

2012：3.622013：3.182014：8.932015：11.85

PerformancePerformance

24


Comparison of SalesComparison of SalesOperations Analysis

Sales by ProductSales by Product

20145%

2015

42%

7%27%

42%

51%68%



Company Profilep y

Core Products

Operations Analysis



Competitive AdvantageCompetitive AdvantageCompetitive Advantage

Technology of composite resin formulation & custom capabilityTechnology of Carbon composite materials and custom capability

11

p yReliability & case histories of vital properties on main products Obtaining international certification & client authenticationEntering higher barriers development including offshore wind power

Insight into the Opportunities

Demand Response Mechanism

Core

.22 To match up the policy and market demand, to integrate quickly & flexibly to develop new services ( as wind power in 2006)

Core Technology

33 Effective integration of the Group institutions and resources on both sides of 4 plants

Industrial Chain Integration

44 Quality assurance system that recognized by International enterprises & organizational ability. Upstream and downstream integration of the Wind energy industry chain.


Group’s Future OutlookGroup’s Future OutlookCompetitive Advantage

Environment Protection and Renewable

Maintaining the existing stablegrowth & profitability on present Materials DivisionRenewable

EnergyMaterials Division

Development of Offshore Wind PowerDevelopment of

To join venture cross‐straitsymbolic enterprises buildinga Carbon fiber new energy

Carbon Fiber New Materials

Offshore Wind Energy

a Carbon fiber new energymaterials development Platform


Competitive Advantage CSR AwardCSR Award

SWANCOR is ranked number 15th of CSR Award out from 200 plus corporateCSR is corporate’s responsibility. CSR Award evaluation is based on corporateCSR is corporate s responsibility. CSR Award evaluation is based on corporate governance, social engagement and environmental protections for potential and valuable corporate.

Resource: CommonWealth Magazine


Resource: CommonWealth Magazine

上緯企業股份有限公司上緯企業股份有限公司上緯企業股份有限公司上緯企業股份有限公司SWANCOR IND. CO., LTDSWANCOR IND. CO., LTD

Sustainable Sustainable EnergyEnergy

&& Q&AQ&A& & Environment Environment ProtectionProtection

QQ

Documents

上緯企業股份有限公司 · Listed in TWSE in 2010 2013 Awarded by Ministry of Economic Affairs as a “Offshore Wind Power Demonstration Subsidy ... Ati i L TkPi Source：TV