1

TOPCO,Code 3388

Presentation

CEO Dr. Chang

2017/8/22

1

www.topcocorp.com

2

Outlines

Company profile

Operations locations

Group investment structure

Shareholders structure & dividend policy

Financial information

Main and core business

Future growth momentum

Appendix

www.topcocorp.com 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。

www.topcocorp.com 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

www.topcocorp.com

Topco HQ

Taichung Branch

Ningbo Branch

Topco Shanghai Suzhou Branch

Xiamen Branch

Beijing Branch

Topco Hong Kong

Topco Guangzhou

Locations

www.topcocorp.com

TOPCO

Holding

HK

(100%)

GZ

(100%)

SH

(100%) Topglow

(65%)

Sllico

ne rela

ted

Gen

eral tr

ad

ing

Indonesia Vietnam

branch

branch branch branch

Group Investment Structure

www.topcocorp.com 7

Shareholders structure &dividend policy

Main shareholders &

employees owns about

50%

Shin-Etsu owns about

4.5%

Dividend policy :cash

and nearly no stock

dividend

Dividend in the recent 5 years

Year 2012 2013 2014 2015 2016

EPS(NT) 5.39 5.42 5.14 4.68 4.68

Cash 5 5 5 4 4

Stock 0 0 0 0 0

www.topcocorp.com 8

Consolidated income statement in recent 3years

& 2017 H1

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

319 290 290 150 17.5%

EPS after

tax(NT dollar)

5.14 4.68 4.68 2.43

17.5%

Unit：NT million

www.topcocorp.com 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 90 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

www.topcocorp.com 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

www.topcocorp.com 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

www.topcocorp.com 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

www.topcocorp.com

Confidential 1863-1949 Dr. Frederick Stanley Kipping (Father of silicone, Grignard reaction)

1909-2002 E.G. Rochow started industrial production (GE, direct process, 1940 )

1953/3/31 First silicone production in Japan Shinetsu Chemical (Bought Patent from GE)

Milestone of Silicone industry

1969/7/20 That’s one small step for a man, one giant leap for mankind

From NASA HOMEPAGE B-29 bomber in Word War II

Originally developed for military and aerospace

www.topcocorp.com

Confidential

How Silicone was made?

SiO2 Metallic Silicon

Electricity

C

Silicone

SiO2 + C → Si + CO2

SiO2 + 2C → Si + 2CO

Methanol, HCl,

Hydrolysis, Polymerization

www.topcocorp.com

Confidential

The production of Silicone

recycle

www.topcocorp.com

Confidential

17

www.topcocorp.com 18

THE END

Q&A