F.T.C — Investor Presentation 2018

Nov 29, 2018

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FORMOSA

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TAFFETA
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2018 Investor Conference

福懋興業股份有限公司 Formosa Taffeta Co., Ltd. (FTC) Stock code: 1434 November 30, 2018

Disclaimer

• The information provided in the document, other than number and data of financial reports, has not been audited or reviewed by any accountant or any independent third party. FTC does not ensure the fairness, completeness and accuracy of the information.

• This document may contain forward-looking statements, including but not limited to statements that address activities, events or developments that FTC expects or anticipates to occur in the future. All statements are based on FTC plans and best knowledge toward the future while subject to various factors and uncertainness beyond FTC’s control. Therefore, the actual results may differ materially from those contained in the forward-looking statements.

• This document does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments.

• This material must not be copied, reproduced, distributed or passed to others at any time, in whole or in part, without the prior written consent of FTC.

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 Corporate Overview

A G E N D A

 Sales Statistics  Competitive Advantages  Financial Status  Operation Orientation  Q&A

Corporate Overview

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FORMOSA

TAFFETA

Corporate Profile

	April 1973 Listing Date December 24,1985 NT$16.847 billion Taiwan 7,100 10,175 in total Oversea 3,075 William Wang Shih-Ming Hsie Ming-ChangLee Production and sales of polyamide fabric, polyester fabric, spinning fabric and carbon fiber fabric Production and sales of tyre cord fabric Retail of petroleum and diesel IC assembly ,testing,module
Established Date
Capital
Number of Global Employees
Chairman
Vice Chairman
President
Main Operations

5

Sales Statistics

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FORMOSA TAFFETA Sales Volume Constitution of Polyamide/Polyester Filament Fabrics

Sales Volume Constitution of Woven Fabrics _by Usage & Filament Fabrics from Jan. to Sep. of 2018 Branded Customers _by Usage & Branded Customers

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17.39%
Sports
39.66%
14.23%
6.53% Outdoors
36.90%
10.90%
15.55%
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Usage	Required Cloth	Functionality
Sports	fabric of flexibility and with multiple functions	moisture absorbent and quick drying, deodorant, and anti- bacterial
Outdoors	fabric with multiple functions, and coating & lamination processes	moisture permeability, waterproof, light- weighted and keeping warm
Fashion & Leisure	fabric as materials and of flexibility, whose hand emphasizes variety of garment styles	natural hand flexibility
Umbrella Fabric	for both sunny and rainy days	UV-cut, shading and cooling-down

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|||||
|---|---|---|---|
|FORMOSA|
|TAFFETA|
|Sales Constitution|
|of Polyamide/Polyester Tyre Cord Business|
|Sales Constitution of Tyre Cord Business from Sales Constitution of Tyre Cord|
|Representative Customers|
|Business from Jan. to Sep. of 2018|
|Jan. to Sep. of 2018 _ by Area|
|_ by Area|
|Cheng Shin ( Maxxis ) Kenda|
|Taiwan|Bridgestone Federal|
|Hwa Fon|Nankan|
|g|g|
|Japan|Yokohama Sumitomo BS|
|North-east|South-east|Korea|Hankook Hung-A Kumho|
|Asia|Asia|Nexen|
|11.02%|33.79%|
|India|MRF Apollo JK Ceat|
|Europe|Continental Michelin Pirelli Tire|
|India|
|20.36%|USA|Goodyear Cooper Titan|
|Taiwan|
|20.73%|South-east|Multistrada Samson Casumina|
|Asia|Da Nang|

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FORMOSA

TAFFETA

Sales Revenue Constitution of Industrial Material Business

Sales Revenue Constitution of Industrial Material Business from Jan. to Sep. of 2018 _by Categories of Products

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Carbon
Fiber Fabrics
7.40%
PE Bags Spinning
21.55% Fabrics
38.50%
Special
Fabrics
32.55%
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Product Application  Flameproof fabric Special  Bulletproof fabric Fabrics  Anti-static fabric  Conventional yarn Spinning  Functional yarn Fabrics  MVS yarn  R-Bag PE Bags  T-Bag  Woven carbon fiber cloth Carbon Fiber  Carbon fiber panel Fabrics  UD prepreg fabric

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FORMOSA

TAFFETA Petroleum Business

107 Stations of FPS

 Formosa Petroleum Station (FPS) operates 107 stations across Taiwan by October 2018, and their locations are shown as the right:

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1 station
Taoyuan City
4 stations
Hsinchu County
1 station
Nantou County
6 stations
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Yunlin County
20 stations
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Newly established Minxiong station in Chiayi County

Chiayi County, 16 stations

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Tainan City
13 stations
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Kaohsiung City
6 stations
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Competitive Advantages

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FORMOSA

TAFFETA

Operational Strategies

To improve product competitiveness through taking Taiwan as a R&D center and logistics platform for production and sales, Embeddedness deeply cultivating China’s domestic market, and taking of Production advantage of lower costs and Preferential Tariff Scheme for and Sales ASEAN free Trade Area as a result of Vietnam’s industry cluster niche

Cooperation with branded customers in design, Vertical development and manufacture through vertical integration Integration of the supply chain of the textile industry

Strong capabilities in R&D and product design allow FTC to R&D cooperate with branded customers to develop new products Innovation and meet their needs in a timely manner.

Green Sustainability

Promotion of circular economy, avocations of energy saving and carbon reduction, pursuit of green materials, efficient management of hazardous chemicals, and realization of green production processes

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FORMOSA

TAFFETA

Embeddedness of Textile Products _5 Plants in 3 Countries

Vietnam

Taiwan

China

1. Generalized System of Preferences (GSP)

2. Preferential Tariff Scheme for the ASEAN Free Trade Area

3. Advantageous Locations—located in the Global Textile Industry Cluster _ Maximized Benefits of Local-to-local Supply Chain

4. Logistics Platform

5. R&D Center

6. Advantages of China’s internal trade

7. Preferential Tariff Scheme for the ASEAN Free Trade Area

weaving, dyeing, tyre cord, special textile @ Douliu @ Dong-nai spinning, weaving, dyeing and finishing @ Long-an Weaving and dyeing

@ Chang-shu dyeing

@ Zhong-shan Weaving and dyeing

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FORMOSA TAFFETA Strategic Alliance through Vertical Integration for FTC’s Textile Products

Branded customers appoint

• 1) fabrics for apparel firms’ production

• 2) yarn that is special and in small volume

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The downstream drive the upstream to collaboratively develop branded customers.

1) The upstream can fully understand the end customers’ needs to catch/lead the trend. 2) FTC can provide better integrated service.

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Raw
、
(NPC FCFC)
Material
Appoint Desired Yarn (small volume and special)
Yarn
Appoint Desired Fabrics
Fabric
Production Bases of Apparel
Under Strategic Alliance
Place an order
Apparel
(FTC)
Branded Customers Apparel
Brands
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FORMOSA
TAFFETA
Circular Economy
_Products Made from Recycled Ghost Nets
Fabrics
Yarn Apparel
福 懋
( FCFC ) ( Apparel Firms )
Apparel
Dyeing &
Drawing Spinning
Weaving
Finishing Manufacturing
Recycled Nylon Yarn
American Outdoor
Melting
Raw Material Apparel Brands
Ghost Nets from
Cutting
Countries of South
America, like Chile, Sales of Apparel
Peru, etc. and Rinsing
Caribbean Sea
(coats, shirts, polo shirts)
Recycling
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FORMOSA TAFFETA

Strategic Alliance between FTC and GORE

FTC is selected as the Global 1[st] Lamination Finishing Supplier by GORE in 2017

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Fabrics
Function
Fabrics
Apparel Terminal
Fabric Suppliers Firms Markets
FTC
Bumblebee
Plant
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FORMOSA
TAFFETA
R & D Innovation
_External Associations Participation
1.Conductive fabric shielding and
Development of Intelligent
absorbing radio wave
Shape Memory Clothing The Hong
2.The titania photocatalysts fabric
Kong
3.Anti-radio wavy material R&D
Polytechnic
Chaoyang Yunlin
University
University
University
Electroplating of Science
of
Solution R&D and
Technology Technology
PET Supercritical Carbon
Dioxide dying Research
Industrial
National Technology
Research
Taiwan
Institute in
Applying University Taiwan
caprylolactone to (ITRI)
SARS (Anti-SARS No.1)
Fashion
ITRI
Design and
Southern
Inspection Textile
and Analyses Region
Exhibition
Taiwan
Campus
Planning Textile
Federation The Study of Carbon
Nanocapsule in Thermal
(TTF)
Conduction and Anti-Radio Wave
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Fashion Design and Textile Exhibition Planning

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FORMOSA TAFFETA R & D Innovation_Cross-Industry Cooperation Research and Development

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Intelligent
Temperature
Control
Clothing
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Intelligent Temperature Control Clothing

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(Holding a product press conference on 15[th] of December in 2017)

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FORMOSA

TAFFETA R & D Innovation_Sustainable Products

Ocean Recycling Moisture Permeable Film FTC weaves ocean recycled bottles yarn into fabrics and laminates the permeable film which is also made of ocean recycled bottle. It is an Omni directionally waterproof breathable fabric.

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Ocean Recycling Moisture Permeable Film

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FORMOSA

TAFFETA

R & D Innovation_Sustainable Products

Products Made from Recycled Ghost Nets

In addition to the application of recycled PET for garment material, FTC has further applied the recycled nylon material, made from Ghost nets in the ocean, to the development and manufacture of various types of fabrics so as to protect the environment by reducing pollution resulted from Ghost nets and their impacts on marine ecology.

Products made from Recycled Ghost Nets

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FORMOSA

TAFFETA R & D Innovation_Sustainable Products

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

Lyocell Filament Fabrics


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those fabrics can have merits as those

Lyocell Filament Fabrics

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FORMOSA

TAFFETA R & D Innovation_Energy-saving Products

Solution Dye Fabric

Solution Dye Fabric

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FORMOSA

TAFFETA R & D Innovation_Energy-saving Products

Ultra-Cooling Feel and Breathable Fabrics

By taking advantage of constructions of woven design, fabrics are of high breathability; further adoption of cooling materials, ultra- cooling feel and breathable fabrics for spring and summer are developed.

Ultra-Cooling Feel and Breathable Fabrics

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FORMOSA

TAFFETA

R & D Innovation _Technologically Functional Products

EVA Uniform Development

FTC’s fabric development has been promoted from the sports and leisure field to the aviation industry. FTC collaborates with EVA airline on new generation of uniforms with excellent stretchy and anti-static features.

EVA Uniform Development

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FORMOSA

TAFFETA

R & D Innovation _Warm, Comfort Products New Style Downproof Textile

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25
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The downproof and warm-up effects of new style downproof textile are upgraded and its seamless feature makes the appearance of apparel much more elegant.

New Style Downproof Textile

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FORMOSA

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TAFFETA
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Complex Embossed

R & D Innovation _Trendy, Fashion Products Complex : Complex embossed Flockxaing A shiny pattern with embossed fabrics : Complex flocking (Patent NO.: I615527) Flocking in the back and front side of fabrics with different colors (Patent NO.: I615529)

: Complex embossed A shiny pattern with embossed fabrics (Patent NO.: I615527)

Complex Embossed/ Flockxaing

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FORMOSA

TAFFETA International Exhibition_TITAS

Exhibition name: 2018 Taipei Innovative Textile Application Show Time: 2018.10.16~2018.10.18

Location: Taipei

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4 Major
Exhibitions
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FORMOSA

TAFFETA International Exhibitions in Shanghai

Exhibition name: Shanghai INTERTEXTILE Textile Exhibition ( international hall) Time: 2018.09.27~2018.09.29 Location: Shanghai

Exhibition name: Shanghai INTERTEXTILE Textile Exhibition (domestic hall) Time: 2018.09.27~2018.09.29 Location: Shanghai

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4 Major Exhibitions

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FORMOSA

TAFFETA International Exhibitions in USA

Exhibition name: OR Summer 2017 Exhibition name: OR Winter 2018 Time: 2017.07.26~2017.07.29 Time: 2018.01.25~2018.01.28 Location: Salt lake city, USA Location: City and County of Denver, USA

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4 Major Exhibitions

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FORMOSA

TAFFETA International Exhibitions in Germany

Exhibition name: OUTDOOR 2017 Exhibition name: ISPO Winter 2018 Time: 2017.06.18~2017.06.21 Time : 2018.01.28~2018.01.31 Location: Friedrichshafen, Germany Location: Munich, Germany

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4 Major Exhibitions

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Financial Status

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FORMOSA

TAFFETA Green Sustainability

Certification Items

Certificates of Eco Products ＆Production Processes: Oeko-Tex ® Standard 100 Certification

GOTS Organic Cotton Certification

OE Organic Cotton Certification

GRS Polyester Recycle Standards Organization Quantification and Reporting of Greenhouse Gas (GHG) Emissions (ISO 14064-1) Occupational Health and Safety Administration System Certification (OHSAS 18001), 2007 Taiwan Occupational Safety and Health Management System (TOHMAS Certification) (ISO 14001:2015 ) Environmental Management System (ISO 14001:2004 ) (ISO 9001:2015 ) Quality Management System (ISO 9001:2008) bluesign® Standard Certification Product Carbon Footprint Certification PAS2050, 2011 Energy Management System (ISO 50001), 2011

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FORMOSA

TAFFETA

Sales Revenue And tables to compare data in Consolidated Financial Statements

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Expressed in
ten million NTD
428.73
398.49 407.10
500 338.04
309.29
400
300
200
100
0
2015 2016 2017 Nine months Nine months
ended ended
September September
30, 2017 30, 2018
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• The sales revenue increased by 9.3% (January to September 2018 vs. January to September 2017), an increase of NT$ 2.875 billion, which can mainly attribute to:

• Differences of NT$ 0.626 billion in sales quantity: increase of NT$ 0.199 billion from filament fabrics of the 1[st] Business Segment and NT$ 0.447 billion from FATC.

• Differences of NT$ 2.249 billion in sales prices:

increase of NT$ 0.681 billion from filament fabrics of the 1[st] Business Segment, NT$ 1.299 billion from Oil Product Business Division of the 2[nd] Business Segment and NT$ 0.121 billion from FATC.

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FORMOSA

TAFFETA And tables to compare data Structure of Sales Revenue _ by Business

Sales Revenue Nine months ended Filament Fabrics Tyre Cord Oil Product Business Oil Product FATC Other September 30, 2018 32.85% 16.79% Business … 26.86% 19.40% 4.10% NT$ 338.04 billion

Sales Revenue
Nine months ended	Filament Fabrics	Tyre Cord	Oil Product Oil Product Business	FATC	Other
September 30, 2017	31.76%	19.38%	Business … 25.45%	19.33%	4.08%
NT$ 309.29 billion

Expressed in thousands of NTD

Revenue, nine months ended September 30, of 2018 vs. that of 2017	Revenue, nine months ended September 30, of 2018 vs. that of 2017	Revenue, nine months ended September 30, of 2018 vs. that of 2017	Revenue, nine months ended September 30, of 2018 vs. that of 2017	Revenue, nine months ended September 30, of 2018 vs. that of 2017	Revenue, nine months ended September 30, of 2018 vs. that of 2017	Revenue, nine months ended September 30, of 2018 vs. that of 2017	Revenue, nine months ended September 30, of 2018 vs. that of 2017
		Filament Fabrics	Tyre Cord	Oil Product Business	FATC	Other	Total
Nine months ended September 30	2018	11,105,059	5,677,085	9,080,440	6,556,523	1,385,272	33,804,379
	2017	9,822,684	5,993,423	7,871,154	5,978,529	1,263,624	30,929,414
Difference		1,282,375	-316,338	1,209,286	577,994	121,648	2,874,965
Growth rate (%)		13.06%	-5.28%	15.36%	9.67%	9.63%	9.30%

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FORMOSA TAFFETA Consolidated Statement of Comprehensive Income

Expressed in thousands of NTD Nine months ended September 30 Growth rate Q3 Seasonal growth rate 2018 2017 2018 2017 Sales revenue 33,804,379 30,929,414 9.30% 11,336,698 9,829,24815.34% Gross operating margin 4,235,024 3,831,34910.54% 1,373,944 1,150,41819.43% Net margin 12.53% 12.39% 12.12% 11.70% Net operating margin 2,120,186 1,814,63616.84% 647,070 457,93641.30% Rate of net operating margin 6.27% 5.87% 5.71% 4.66% Total non-operating income and expenses 3,734,054 2,758,61135.36% 2,696,442 516,687421.87% Profit before income tax 5,854,240 4,573,24728.01% 3,343,512 974,623243.06% Profit for the year 5,028,203 4,191,48419.96% 3,237,700 916,742253.17% Rate of profit for the year 14.87% 13.55% 28.56% 9.33% Basic and diluted EPS (in dollars) 2.97 2.37 25.32% 1.81 0.45302.22%	Expressed in thousands of NTD Nine months ended September 30 Growth rate Q3 Seasonal growth rate 2018 2017 2018 2017 Sales revenue 33,804,379 30,929,414 9.30% 11,336,698 9,829,24815.34% Gross operating margin 4,235,024 3,831,34910.54% 1,373,944 1,150,41819.43% Net margin 12.53% 12.39% 12.12% 11.70% Net operating margin 2,120,186 1,814,63616.84% 647,070 457,93641.30% Rate of net operating margin 6.27% 5.87% 5.71% 4.66% Total non-operating income and expenses 3,734,054 2,758,61135.36% 2,696,442 516,687421.87% Profit before income tax 5,854,240 4,573,24728.01% 3,343,512 974,623243.06% Profit for the year 5,028,203 4,191,48419.96% 3,237,700 916,742253.17% Rate of profit for the year 14.87% 13.55% 28.56% 9.33% Basic and diluted EPS (in dollars) 2.97 2.37 25.32% 1.81 0.45302.22%	Expressed in thousands of NTD Nine months ended September 30 Growth rate Q3 Seasonal growth rate 2018 2017 2018 2017 Sales revenue 33,804,379 30,929,414 9.30% 11,336,698 9,829,24815.34% Gross operating margin 4,235,024 3,831,34910.54% 1,373,944 1,150,41819.43% Net margin 12.53% 12.39% 12.12% 11.70% Net operating margin 2,120,186 1,814,63616.84% 647,070 457,93641.30% Rate of net operating margin 6.27% 5.87% 5.71% 4.66% Total non-operating income and expenses 3,734,054 2,758,61135.36% 2,696,442 516,687421.87% Profit before income tax 5,854,240 4,573,24728.01% 3,343,512 974,623243.06% Profit for the year 5,028,203 4,191,48419.96% 3,237,700 916,742253.17% Rate of profit for the year 14.87% 13.55% 28.56% 9.33% Basic and diluted EPS (in dollars) 2.97 2.37 25.32% 1.81 0.45302.22%	Expressed in thousands of NTD Nine months ended September 30 Growth rate Q3 Seasonal growth rate 2018 2017 2018 2017 Sales revenue 33,804,379 30,929,414 9.30% 11,336,698 9,829,24815.34% Gross operating margin 4,235,024 3,831,34910.54% 1,373,944 1,150,41819.43% Net margin 12.53% 12.39% 12.12% 11.70% Net operating margin 2,120,186 1,814,63616.84% 647,070 457,93641.30% Rate of net operating margin 6.27% 5.87% 5.71% 4.66% Total non-operating income and expenses 3,734,054 2,758,61135.36% 2,696,442 516,687421.87% Profit before income tax 5,854,240 4,573,24728.01% 3,343,512 974,623243.06% Profit for the year 5,028,203 4,191,48419.96% 3,237,700 916,742253.17% Rate of profit for the year 14.87% 13.55% 28.56% 9.33% Basic and diluted EPS (in dollars) 2.97 2.37 25.32% 1.81 0.45302.22%	Expressed in thousands of NTD Nine months ended September 30 Growth rate Q3 Seasonal growth rate 2018 2017 2018 2017 Sales revenue 33,804,379 30,929,414 9.30% 11,336,698 9,829,24815.34% Gross operating margin 4,235,024 3,831,34910.54% 1,373,944 1,150,41819.43% Net margin 12.53% 12.39% 12.12% 11.70% Net operating margin 2,120,186 1,814,63616.84% 647,070 457,93641.30% Rate of net operating margin 6.27% 5.87% 5.71% 4.66% Total non-operating income and expenses 3,734,054 2,758,61135.36% 2,696,442 516,687421.87% Profit before income tax 5,854,240 4,573,24728.01% 3,343,512 974,623243.06% Profit for the year 5,028,203 4,191,48419.96% 3,237,700 916,742253.17% Rate of profit for the year 14.87% 13.55% 28.56% 9.33% Basic and diluted EPS (in dollars) 2.97 2.37 25.32% 1.81 0.45302.22%	Expressed in thousands of NTD Nine months ended September 30 Growth rate Q3 Seasonal growth rate 2018 2017 2018 2017 Sales revenue 33,804,379 30,929,414 9.30% 11,336,698 9,829,24815.34% Gross operating margin 4,235,024 3,831,34910.54% 1,373,944 1,150,41819.43% Net margin 12.53% 12.39% 12.12% 11.70% Net operating margin 2,120,186 1,814,63616.84% 647,070 457,93641.30% Rate of net operating margin 6.27% 5.87% 5.71% 4.66% Total non-operating income and expenses 3,734,054 2,758,61135.36% 2,696,442 516,687421.87% Profit before income tax 5,854,240 4,573,24728.01% 3,343,512 974,623243.06% Profit for the year 5,028,203 4,191,48419.96% 3,237,700 916,742253.17% Rate of profit for the year 14.87% 13.55% 28.56% 9.33% Basic and diluted EPS (in dollars) 2.97 2.37 25.32% 1.81 0.45302.22%
Nine months ended September 30 2018 2017		Growth rate	Q3		Seasonal growth rate
	2017		2018	2017
Sales revenue 33,804,379	30,929,414 9.30% 11,336,698			9,829,24815.34%
Gross operating margin 4,235,024	3,831,34910.54% 1,373,944			1,150,41819.43%
Net margin 12.53%	12.39% 12.12%			11.70%
Net operating margin 2,120,186	1,814,63616.84% 647,070			457,93641.30%
Rate of net operating margin 6.27%	5.87% 5.71%			4.66%
Total non-operating income and expenses 3,734,054	2,758,61135.36% 2,696,442			516,687421.87%
Profit before income tax 5,854,240	4,573,24728.01% 3,343,512			974,623243.06%
Profit for the year 5,028,203	4,191,48419.96% 3,237,700			916,742253.17%
Rate of profit for the year 14.87%	13.55% 28.56%			9.33%
Basic and diluted EPS (in dollars) 2.97	2.37 25.32% 1.81			0.45302.22%

35

	Sid S f Ch Fl FORMOSA TAFFETA	Sid S f Ch Fl FORMOSA TAFFETA	Sid S f Ch Fl FORMOSA TAFFETA
	ummarze tatement o as ows Expressed in thousands of NTD Nine months ended September 30 2018 2017 Cash at beginning of period 4,942,919 5,653,854 Net cash flows from operating activities (A) 4,390,396 5,462,368 Capital Expenditures(B) (2,250,214) (1,687,807) Financial assets 180,439 (987,740) Bank borrowings (2,678,992) 165,593 Dividends paid (3,580,953) (2,838,239) Share transaction of 19% FATC’s stocks 3,039,857 0 Other (21,526) (33,839) Cash and cash equivalent at end of period 4,021,926 5,734,190 Free cash flow (A-B) 2,140,182 3,774,561
		Nine months ended September 30
		2018	2017
	Cash at beginning of period	4,942,919	5,653,854
	Net cash flows from operating activities (A)	4,390,396	5,462,368
	Capital Expenditures(B)	(2,250,214)	(1,687,807)
	Financial assets	180,439	(987,740)
	Bank borrowings	(2,678,992)	165,593
	Dividends paid	(3,580,953)	(2,838,239)
	Share transaction of 19% FATC’s stocks	3,039,857	0
	Other	(21,526)	(33,839)
	Cash and cash equivalent at end of period	4,021,926	5,734,190
	Free cash flow (A-B)	2,140,182	3,774,561

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FORMOSA

TAFFETA

Stable Profitability and Dividends Distribution

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EXPRESSED IN Profit before income tax, EPS,
THOUSANDS OF NTD and cash dividends for the last 5 years DOLLARS/SHARE
6,000,000 3
2.66
5,000,000 2.24 2.5
2.12
1.80
4,000,000 2
1.44
3,000,000 1.90 1.5
1.50
1.40
2,000,000 1
1.20
1.00
1,000,000 0.5
2,659,932 4,171,939 3,761,297 4,474,799 5,276,484
0 0
2013 2014 2015 2016 2017
Profit before income tax EPS Cash dividends
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Operation Orientation

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FORMOSA

TAFFETA Operation Orientation

Smart Fashion with Sustainability

• ─ Application of technology and cross-field collaboration

Continuously obtaining branded customers' recognition

• ─ Development of innovative textiles

• ─ adidas considers FTC a Top Player of its suppliers

Cooperation Crosswith industry Branded Intelligent Customers R&D

• ─ Nike recognizes FTC’s eco-friendly products

• ─ Circular Economy_ recycling Ghost nets

Deepen the value of taking quality as the core by strengthening techniques

Promotion of added value and differentiation of products

Designing functionand eco-oriented products

Homogenization of product quality of 5 Plants in 3 countries

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FORMOSA TAFFETA Operation Orientation

 To take advantage of geographic synergies of 3 Plants in 5 countries

Taiwan

China

Deep cultivation of its domestic market

Logistics Platform R&D Center Operations Center

Vietnam

The Global Textile Industry Cluster _ Benefits of Local-to-local Supply Chain

Capacity after Expansion

Plant	Expanded/ increased items	Annual capacity after expansion
Long-an	D&F plants	Filament Fabrics 8.52 million yards
Dong-nai	Tyre cord plants	Tyre Cord Yarn 25,800 tons
	Weaving machines	Gray 10.20 million yards
	D&F plants	Filament Fabrics 5.40 million yards

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FORMOSA

TAFFETA Operation Orientation

 To take the social corporate responsibility and emphasize environmental protection and sustainable development

 Completed conservation projects of 9 months ended Sep. 30 in 2018 _Taiwan Plant

Accumulated Investment Conserved Conserved Conserved Conserved Reduced Amount Amount Steam Water Electricity Fuel Emissions of CO2 (Thousands of (Thousands (MT/HR) (MT/Day) (KW) (KG/HR) (Tons/Year) NTD/Year) of NTD) 0.27 1,405.43 367.07 6.25 3,084.60 14,566.16 22,558.5

• Planned effluent recycling projects of 5 Plants in 3 countries in 2019: 1. Estimated Invested amount: NT$ 238 million

• Anticipated recycling rate: 65~70%

• Anticipated completion time for all effluent recycling projects: by 2019

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Q & A