F.T.C — Investor Presentation 2018

Aug 21, 2018

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FORMOSA

TAFFETA

2018 Investor Conference

福懋興業股份有限公司 Formosa Taffeta Co., Ltd. (FTC) Stock code: 1434 August 23. 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 FCFC expects or anticipates to occur in the future. All statements are based on FTC plan and best knowledge toward the future while subject to various factors and uncertainness beyond FTC 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 Advantage  Financial Status  Operation Orientation  Q&A

Corporate Overview

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FORMOSA

TAFFETA

And tables to compare data Corporate Profile

Established Date April 1973 Listing Date December 24, 1985

Ca ital p

NT$16.85 billion

Taiwan 7,110,110110

Number of global Taiwan 7,110,110110 employees Oversea 3,087

10,197 in total

Chairman

William Wan g

Vice Chairman

Shih-Min Hsie g

President

Min -Chan Lee g g

 Production and sales of polyamine fabric, polyester fabric, spinning fabric and carbon fiber fabric

Main operations

 Production and sales of tyre cord fabric  Retail of petroleum and diesel  IC assembly , testing, module

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FORMOSA TAFFETA Production Bases

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Formosa Taffeta Co., Ltd.
(Headquarters) (1973)
Formosa Advanced Technology
Co., Ltd. (1990)
Formosa Taffeta Changshu
Co., Ltd. (2005)
Formosa Taffeta Zhong Shan
CO., Ltd. (1992)
Formosa Taffeta Vietnam Formosa Taffeta Dong Nai
Co., Ltd. (2004)
Co., Ltd. (1999)
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Formosa Taffeta Vietnam
Co., Ltd. (1999)
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FORMOSA TAFFETA Subsidiaries and Holding Ratios

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Formosa
Advanced
Formosa Technologies
Co., Ltd. Formosa
Taffeta
Co., Ltd.
(Cayman) 46.68%
Development
Co., Ltd.
100.00%
100.00%
Formosa
Taffeta
Formosa Formosa Changshu
Taffeta Taffeta Co., Ltd.
Dong Nai Hong Kong 100.00%
Co., Ltd. Co., Ltd.
100.00% 100.00%
Formosa
Schoeller
Taffeta
FTC H.K.
Vietnam
Formosa Co., Ltd.
Co., Ltd.
Taffeta 50.00%
100.00%
Zhongshan
Co., Ltd.
100.00%
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FORMOSA

TAFFETA

Products of 1[st] Business Segment and the Scope of Related Applications

Polyamine Fabric

• » Wet breathable & waterproof rain coat, snow coats, jackets

• » Garments, down jackets, sportswear, hunting suits

• » Hats, gloves

Polyester Fabric

• » Sports casual wear » Microfiber clothing

• » Curtains

• » Umbrellas | parasols

• » Tents, air beds, sails

• » Umbrellas |parasols, golf umbrellas, beach umbrellas

• » Shields with electromagnetic insulation

Cotton fabric, blended fabric, fabrics interwoven with filament/staple fiber, pre-dyed plaid

• » Garments, jackets, shirts

• » Umbrellas | parasols

• » Backpacks

• » Medical health care supplies

New functional yarn

• » Sports casual wear, hats, coats » Bedding

• » Health care supplies

• » Umbrellas | parasols

• » Special processing purpose

• » Diverse woven/knitted fabrics

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FORMOSA

TAFFETA

Products of 2[nd] Business Segment and the Scope of Related Applications

Combed cotton yarn, blended yarn

» Diverse woven/knitted fabrics for various apparel

• » Cotton and blended fabrics

• » Fabrics interwove with filament/staple fiber

• » Pre-dyed plaid

Protective/special fabric

• » Flame retardant/resistant fabric

• » Air force flight suits, tank suits, Secret Service suits, firefighting suits, electric arc suits, motorcycle suits

• » Clean-room clothes/aseptic clothes for electronic, foodstuff, and pharmaceutical factories

• » Sterile gown, wrapping fabric, petroleum clothes, anti-electric arc clothes, uniform for policemen and servicemen, bullet-proof/stab-proof clothes

• » Helmet, shield

» Drum paper for speaker, damper fabric for stereo equipment

Plastic bags » Plastic shopping bags » Perforated bags » Garbage bags

Carbon fiber fabrics as composite materials

• » Sports equipment » Bicycles, motorcycles, autos

• » Aerospace industry, electronic products, industrial mechanical arms and mechanisms

• » Electronic products

• » Construction reinforcement

» Wind turbine blades

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FORMOSA

TAFFETA

Products of 2[nd] Business Segment and the Scope of Related Applications (Cont.)

Polyamine/polyester Tyre cord fabrics

• » Tire cord fabrics for various vehicles

• » Chafers for tyre-lips » Puncture resistant fabric for bicycle tires, lining

Petroleum goods

• » The sale of diesel, petroleum 、 、

• in 98 95+ 92

• » Car wash

• » Lubrication, car appliances

• » Lining canvas or ducks for conveyor belts

FATC’s Business and the Scope of Related Application

IC Assembly | Testing | Module

» Services of assembly, testing, module and R&D of any types of IC

10

Sales Statistics

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FORMOSA

TAFFETA Sales Volume Constitution of Polyamine/Polyester Woven Fabrics

Sales Volume Constitution of Woven Fabrics _by Usage & Branded Customers

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17.52%
Sports
39.95%
14.33%
6.54% Outdoors
36.93%
10.91%
15.57%
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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 And tables to compare data Polyamine/Polyester Tyre Cord Business

Sales Constitution of Representative Customers Tyre Cord Business _ by Area Cheng Shin ( Maxxis ) Kenda Taiwan Bridgestone Federal Hwa Fon Nankan g g Japan Yokohama Sumitomo BS South-east Hankook Hung-A Kumho North-east Korea Asia Nexen Asia 33.60% 10.56% India MRF Apollo JK Ceat Europe Continental Michelin Pirelli Tire Taiwan 20.07% USA Goodyear Cooper Titan India 20.62% South-east Multistrada Samson Casumina Asia Da Nang

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FORMOSA

TAFFETA

Sales Revenue Constitution And tables to compare data of Industrial Material Business

Sales Revenue Constitution of Industrial Material Business _by Categories of Products

Carbon Fabrics Fiber Product Application 7.31% Special Flameproof fabric, Bulletproof fabric, Anti- PE Bags Special Fabrics static fabric 20.17% Fabrics 37.05% Spinning Conventional Yarn, Functional Yarn, MVS Yarn Fabrics PE Bags R-Bag, T-Bag Spinning Fabrics Carbon Fiber Woven carbon fiber cloth, Carbon fiber panel, 35.47% Fabrics UD prepreg fabric

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FORMOSA

TAFFETA Petroleum Business

106 Stations of FPS

 Formosa Petroleum Station (FPS) operates 106 stations across Taiwan by June 2018, and their locations are shown as the right:

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1 station
Taoyuan City
4 stations
Hsinchu County
1 station
2 stations
Nantou County
6 stations
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Yunlin County
20 stations
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Chiayi City, 5 stations
Chiayi County, 15 stations
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Tainan City
13 stations
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Kaohsiung City
6 stations
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Competitive Advantage

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FORMOSA TAFFETA Market Position

• The manufacturer with the hugest capacity of polyamine/polyester woven fabrics and tyre cord fabrics in Taiwan

• The first global exclusive authorized producer of Gore, headquartering in USA

• The 3[rd] largest channels of petroleum products in Taiwan

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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

Use of recycled resources, avocations of energy saving and carbon reduction, pursuit of green materials, efficient management of hazardous chemicals, 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 Location, located in the Global Textile Industry Cluster _ Maximized Benefits of Local-to-local Supply Chain

4. Logistics Platform

5. R&D Center

6. Advantages in 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.

Upstream

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Raw 、
(NPC FCFC)
Material
Appoint Desired Yarn (small volume and special)
Yarn
Appoint Desired Fabrics
Fabric
Production Bases of Apparel Place an order
Under Strategic Alliance Apparel
(FTC)
Apparel
Brands
Branded Customers
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Downstream

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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

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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
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 fabrics.

Chemical fibers and plastic products in the ocean are broken into microplastics and eaten by marine organisms, which affects the food chain significantly. (Photo / European News Agency)

Ocean Recycling Moisture Permeable Film

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FORMOSA

TAFFETA

R & D Innovation_Sustainable Products

Lyocell Filament Fabrics through Solvent Recycle Process

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FORMOSA

TAFFETA

R & D Innovation_Sustainable Products

Solution Dye Fabric

Solution Dye Fabric

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FORMOSA

TAFFETA R & D Innovation_Sustainable Products

Ultra-Cooling Feel and Breathable Fabrics

By using woven construction design, it makes fabrics feature with high breathability and cooling materials. It develops into spring summer ultra- cooling feel and breathable fabric.

Ultra-Cooling Feel and Breathable Fabrics

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FORMOSA

TAFFETA

R & D Innovation_Sustainable 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 uniform with excellent stretchy and anti-static features.

EVA

Uniform

Development

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FORMOSA

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TAFFETA
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R & D Innovation_Sustainable Products

New Style Downproof Textile

New style downproof textile upgrades the downproof and warm up effect. The appearance is better with it seamless feature.

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New Style Downproof Textile

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FORMOSA

TAFFETA

R & D Innovation_Sustainable Products Complex Flockxaing

Complex embossed:

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

Complex flocking: Flocking in the back and front side of fabrics with different colors. (Patent NO.: I615529)

Complex Embossed

Complex Embossed Complex Flockxaing

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FORMOSA

TAFFETA International Exhibition in Shanghai

Exhibition name ： shanghai INTERTEXTILE textile exhibition( international hall) Booth size ： 192m2 Time : 2017.10.11~2017.10.13 Location: shanghai

Main clients ： NIKE, adidas, Lululemon, PUMA, VF etc.

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Exhibition name ： shanghai INTERTEXTILE textile exhibition (domestic hall) Booth size ： 120m2

Time : 2017.10.11~2017.10.13 Location: shanghai

Main clients ： NIKE, adidas, Lululemon, PUMA, VF etc.

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FORMOSA

TAFFETA

International Exhibition in Germany

Exhibition name ： OUTDOOR 2017 Booth size ： 54m[2 ] Time : 2017.06.18~2017.06.21

Location: Friedrichshafen, Germany Main clients ： adidas, The North Face, VF Group, ARC'TERYX, MAMMUT, Haglöfs, VAUDE, TENUA, MONTURA

Exhibition name ： ISPO Winter 2018 Booth size ： 54m[2 ] Time : 2018.01.28~2018.01.31 Location: Munich, Germany

Main clients ： adidas, AIGLE, PUMA, C&A, Canada Goose, Desigual, Eddie Bauer, Gore, H&M, Haglofs, Jack Wolfskin, Lululemon and etc.

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FORMOSA

TAFFETA

International Exhibition in USA

Exhibition name ： OR Summer 2017 Booth size ： 80m[2 ]

Exhibition name ： OR Winter 2018 Booth size ： 54m[2 ]

Time ： 2017.07.26~2017.07.29 Location ： Salt lake city, USA

Main clients ： 62 important clients visited our booth such as TNF 、 GORE 、 REI 、 adidas 、 UA 、 Sitka etc.

Time : 2018.01.25~2018.01.28

Location: City and County of Denver,USA Main clients ： TNF 、 adidas 、 Reebok 、 Marmot 、 UA 、 Mountain Hard Wear 、 Gore etc.

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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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Financial Status

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FORMOSA TAFFETA Sales Revenue And tables to compare data in Consolidated Financial Statements

Expressed in ten million NTD

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428.73
500 398.49 407.06
400
224.68
300
200
100
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0

2015 2016 2017 1H18

 Reasons that sales revenue of 2017 is 2.2% more than that of 2016 are:

1. Warmer consumption of apparel results in reduction of branded customers’ stock; this brings about gradual recovery of sport branded customers’ purchasing momentum, which further makes sales revenue to grow and the one of 2018 promising.

2. Higher crude oil price per barrel in 2017 (compared to that in 2016) pulls up retail prices of oil, which turns in growth of sales revenue.

36

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FORMOSA

TAFFETA

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

|Tyre Cord
16.29%
FATC
19.03%
Other
4.17%
0%
20%
40%
60%
80%
100%
Sales Revenue of the
1st half year of 2017
NT$ 21.10 billion
Sales Revenue of the
1st half year of 2018
NT$ 22.47 billion
1H17 Revenue vs. 1H18 Revenue Expressed in thousands of NTD
Period
Filament | Staple Fabrics
Tyre Cord
Oil Product Business
FATC
Other
1H17
7,280,731
3,672,170
5,249,936
4,110,012
787,317
1H18
7,722,775
3,659,007
5,872,819
4,275,071
938,009
Tyre Cord
17.40%
FATC
19.48%
Other
3.73%
0%
20%
40%
60%
80%
100%
Filament | Staple
Fabrics
34.51%
Filament | Staple
Fabrics
34.37%
Oil Product
Business
24.88%
Oil Product
Business
26.14%|Tyre Cord
16.29%
FATC
19.03%
Other
4.17%
0%
20%
40%
60%
80%
100%
Sales Revenue of the
1st half year of 2017
NT$ 21.10 billion
Sales Revenue of the
1st half year of 2018
NT$ 22.47 billion
1H17 Revenue vs. 1H18 Revenue Expressed in thousands of NTD
Period
Filament | Staple Fabrics
Tyre Cord
Oil Product Business
FATC
Other
1H17
7,280,731
3,672,170
5,249,936
4,110,012
787,317
1H18
7,722,775
3,659,007
5,872,819
4,275,071
938,009
Tyre Cord
17.40%
FATC
19.48%
Other
3.73%
0%
20%
40%
60%
80%
100%
Filament | Staple
Fabrics
34.51%
Filament | Staple
Fabrics
34.37%
Oil Product
Business
24.88%
Oil Product
Business
26.14%|Tyre Cord
16.29%
FATC
19.03%
Other
4.17%
0%
20%
40%
60%
80%
100%
Sales Revenue of the
1st half year of 2017
NT$ 21.10 billion
Sales Revenue of the
1st half year of 2018
NT$ 22.47 billion
1H17 Revenue vs. 1H18 Revenue Expressed in thousands of NTD
Period
Filament | Staple Fabrics
Tyre Cord
Oil Product Business
FATC
Other
1H17
7,280,731
3,672,170
5,249,936
4,110,012
787,317
1H18
7,722,775
3,659,007
5,872,819
4,275,071
938,009
Tyre Cord
17.40%
FATC
19.48%
Other
3.73%
0%
20%
40%
60%
80%
100%
Filament | Staple
Fabrics
34.51%
Filament | Staple
Fabrics
34.37%
Oil Product
Business
24.88%
Oil Product
Business
26.14%|Tyre Cord
16.29%
FATC
19.03%
Other
4.17%
0%
20%
40%
60%
80%
100%
Sales Revenue of the
1st half year of 2017
NT$ 21.10 billion
Sales Revenue of the
1st half year of 2018
NT$ 22.47 billion
1H17 Revenue vs. 1H18 Revenue Expressed in thousands of NTD
Period
Filament | Staple Fabrics
Tyre Cord
Oil Product Business
FATC
Other
1H17
7,280,731
3,672,170
5,249,936
4,110,012
787,317
1H18
7,722,775
3,659,007
5,872,819
4,275,071
938,009
Tyre Cord
17.40%
FATC
19.48%
Other
3.73%
0%
20%
40%
60%
80%
100%
Filament | Staple
Fabrics
34.51%
Filament | Staple
Fabrics
34.37%
Oil Product
Business
24.88%
Oil Product
Business
26.14%|Tyre Cord
16.29%
FATC
19.03%
Other
4.17%
0%
20%
40%
60%
80%
100%
Sales Revenue of the
1st half year of 2017
NT$ 21.10 billion
Sales Revenue of the
1st half year of 2018
NT$ 22.47 billion
1H17 Revenue vs. 1H18 Revenue Expressed in thousands of NTD
Period
Filament | Staple Fabrics
Tyre Cord
Oil Product Business
FATC
Other
1H17
7,280,731
3,672,170
5,249,936
4,110,012
787,317
1H18
7,722,775
3,659,007
5,872,819
4,275,071
938,009
Tyre Cord
17.40%
FATC
19.48%
Other
3.73%
0%
20%
40%
60%
80%
100%
Filament | Staple
Fabrics
34.51%
Filament | Staple
Fabrics
34.37%
Oil Product
Business
24.88%
Oil Product
Business
26.14%|Tyre Cord
16.29%
FATC
19.03%
Other
4.17%
0%
20%
40%
60%
80%
100%
Sales Revenue of the
1st half year of 2017
NT$ 21.10 billion
Sales Revenue of the
1st half year of 2018
NT$ 22.47 billion
1H17 Revenue vs. 1H18 Revenue Expressed in thousands of NTD
Period
Filament | Staple Fabrics
Tyre Cord
Oil Product Business
FATC
Other
1H17
7,280,731
3,672,170
5,249,936
4,110,012
787,317
1H18
7,722,775
3,659,007
5,872,819
4,275,071
938,009
Tyre Cord
17.40%
FATC
19.48%
Other
3.73%
0%
20%
40%
60%
80%
100%
Filament | Staple
Fabrics
34.51%
Filament | Staple
Fabrics
34.37%
Oil Product
Business
24.88%
Oil Product
Business
26.14%|Tyre Cord
16.29%
FATC
19.03%
Other
4.17%
0%
20%
40%
60%
80%
100%
Sales Revenue of the
1st half year of 2017
NT$ 21.10 billion
Sales Revenue of the
1st half year of 2018
NT$ 22.47 billion
1H17 Revenue vs. 1H18 Revenue Expressed in thousands of NTD
Period
Filament | Staple Fabrics
Tyre Cord
Oil Product Business
FATC
Other
1H17
7,280,731
3,672,170
5,249,936
4,110,012
787,317
1H18
7,722,775
3,659,007
5,872,819
4,275,071
938,009
Tyre Cord
17.40%
FATC
19.48%
Other
3.73%
0%
20%
40%
60%
80%
100%
Filament | Staple
Fabrics
34.51%
Filament | Staple
Fabrics
34.37%
Oil Product
Business
24.88%
Oil Product
Business
26.14%|
|---|---|---|---|---|---|---|
||||||||
||||||||
||Period|Filament | Staple Fabrics|Tyre Cord|Oil Product Business|FATC|Other|
||1H17|7,280,731|3,672,170|5,249,936|4,110,012|787,317|
||1H18|7,722,775|3,659,007|5,872,819|4,275,071|938,009|

• Sales revenue of 1[st] half year of 2018 (NT$ 22.47billion) is 6.5% higher than that of 2017 (NT$ 21.10 billion).

• Sport/outdoor branded customers has recovered their autumn winter purchasing momentum because of continuously and slightly upward consumption of apparel in 2018 and stable trends of raw materials and exchange rate.

• Sales volume and retail price of gasoline and diesel results in the increase of sales revenue.

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FORMOSA TAFFETA Consolidated Statements of And tables to compare data Comprehensive Income

Expressed in thousands of NTD

1H18	1H17	Semi-annual growth rate	2Q18	1Q18	Seasonal growth rate
Sales revenue 22,467,681	21,100,166 6.5% 11,737,258			10,730,423 9.4%
Gross operating margin 2,861,080	2,680,931 6.7% 1,569,841			1,291,239 21.6%
Net margin 12.7%	12.7% 13.4%			12.0%
Net operating margin 1,473,116	1,356,700 8.6% 843,333			629,783 33.9%
Rate of net operating margin 6.6%	6.4% 7.2%			5.9%
Total non-operating income and expenses 1,037,612	2,241,924 -53.7% 1,114,484			(76,872) ─
Profit before income tax 2,510,728	3,598,624 -30.2% 1,957,817			552,911 254.1%
Profit for the year 1,790,503	3,274,742 -45.3% 1,408,586			381,917 268.8%
Rate of profit for the year 8.0%	15.5% 12.0%			3.6%
Basic and diluted EPS before income tax (in dollars) 1.49	2.14 -30.4% 1.16			0.33 251.5%

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FORMOSA

TAFFETA

Stable Profitability and And tables to compare data Dividends Distribution

EXPRESSED IN Profit before income tax, EPS, and THOUSANDS OF cash dividends for the last 5 years NTD

DOLLARS/SHARE

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000	2,659,932 4,171,970 3,761,297 4,474,799 5,276,484 1.44 2.12 1.80 2.24 2.66 1.00 1.40 1.20 1.50 1.90 0 0.5 1 1.5 2 2.5 3 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

 Strengthening R&D and techniques

Development of innovative textiles through application of technology and crossfield collaboration

Continuously obtaining branded customers' recognition

Cooperation Crosswith industry Branded Intelligent Customers R&D

• ─ adidas considers FTC a Top Player of its suppliers

• ─ Nike recognizes FTC’s ecofriendly products

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

Promotion of added value and differentiation of products

Homogenization of product quality of 5 Plants in 3 countries

Designing functionand eco-oriented

products

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FORMOSA TAFFETA Operation Orientation

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

Taiwan

China

Logistics Platform R&D Center Operations Center

Deep cultivation of its domestic market

Vietnam

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

Capacity after Expansion Expanded/ Annual capacity Plant increased items after expansion Long-an D&F plants 8.52 million yards Tyre cord plants 25,800 tons Dong-nai Weaving machines 10.20 million yards D&F plants 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 in 2017_Taiwan Plant

Reduced Accumulated Investment Conserved Conserved Conserved Conserved Emissions of Amount Amount Steam Water Electricity Fuel CO2 (Thousands of ( Thousands (MT/HR) (MT/Day) (KW) (KG/HR) (Tons/Year) NTD/Year) of NTD) 1.06 3,988.2 587.19 82.24 9,260.89 30,412.58 45,336.3

• Ongoing effluent recycling projects of 5 Plants in 3 countries in 2018:

• Invested amount: NT$ 237.56 million

• Anticipated recycling rate: 65~70%

• Anticipated date for all effluent recycling projects: March 2019

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Q & A