TOPKEY — Investor Presentation 2017

Jun 7, 2017

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Stock Code - 4536

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Copyright © TOPKEY Excellence In Composites 02

TOPKEY CORPORATION

Chairman / President Walter Shen Vice Chairman Tony Chu Staff 262 (Topkey Group 5,976 people ) Established on 1980/07/11 <37 years> Capital NT$ 908.2 Million Address 18.20th Road, Industrial Park Taichung, Taiwan, R.O.C.40850

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Topkey Group

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1980 1988 1995
KEENTECH COMPOSITE TECH.
TOPKEY CORPORATION Composite Solutions
CO.,LTD XING LIN PLANT
1999 2000
YEU CHUAN COMPOSITE XIN HONG ZHOU PRECISION
TECHNOLOGY CO.,LTD TECHNOLOGY CO.,LTD
2004 2007
VALVER COLOR KEENTECH COMPOSITE
STICKER CO.,LTD TECH. CO.,LTD HOU XI PLANT
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Topkey Group Organization Chart

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Information
Finance R & D Aviation Business TP Material Procurement
Management
Division Division Unit Business Unit Division
Division
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Topkey Group Manpower Analysis

Business Headcount Total 5,976 Unit 262 Composite TP Aviation, Medical Sporting goods 4,073 KT Safety 780 YE Tool, VCM 629 XPT Water transfer printing 139 VC Aviation 93 CSC	R&D Resources Others 28% Bachelor 60% Master degree above 12% Research manpower Develop manpower R&D Personnel 156 317 5.3% 2.7% 33 11 88 219 18 35 12 41 1 2 4 9

Total Headcount: 5,976 ,R&D personnel 473/ 8%

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Topkey Group Composite Material Development

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Continue development of aviation structural parts and industrial products related to composite products

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Production of Carbon fiber aircraft interior and medical relatives M&A Composite Solutions Corporation in Seattle , USA Production of carbon fiber Bicycle frame and Helmet

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Production of carbon fiber Racket

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Diversification of Products and Industries

CFRP (Carbon-Fiber Rein-enforce Polymer) as the core material , Six industries in terms of scale and technology are leader of the industry.

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Copyright © TOPKEY Excellence In Composites 09

The Characteristics of Carbon Fiber

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The Density is smaller
Conductive as copper than aluminum
(lighter than aluminum)
The proof against The heat-resistant is
corrosion is better better than
than stainless steel heat-resistant steel
Almost no distortion
The strength is
(Thermal expansion
better than steel
and contraction)
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Superior

Electricity Properties +[Thermology Properties ] + Mechanics Properties There is no other material possess so many superior properties.

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Quality-Qualification & Certification

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ISO9001/AS9100C/14001-KT

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NADCAP/ISO9001/AS9100C-TK

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NADCAP/AS9100B-CSC

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RACKETS & SPORTS

Annual Production Capacity 2 Millions. World’s Largest OEM Composite Racket Supplier. 50% Seed Player Selected Rackets.

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BIKE PRODUCTS

Annual Production Capacity 300,000 sets. Seven pro-teams Selected Bikes. Tour de France and Tour of Spain Champion, 2014.

2016 Girod’Italia Bicycle race Champion.

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SAFETY

Year capacity 1.3 Millions. First design of carbon fiber helmet(1995). Lightest helmet (950g) in the world and meets EC standard(2008). AGV won 2017 Motor GP (Moto3) Champion.

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MEDICAL

Niche Market (Slope). Sole Source Supplier. World’s leading Slope, Table Top & Accessories for MRI/CT.

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AVIATION - Cabin Interior

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Lufthansa United Airline TACA Air Berlin Fly Dubai TAM JAL Singapore Airline ANA Cathay Pacific

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AVIATION - Aircraft Substructure

Honda Jet Structural component Parts Tail Boom Assemblies for MD900, MD600N, MD520N Black Hawk, S-92 (Sikorsky) BA-609 (Bell/Agusta)

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AVIATION PRODUCTS

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C-17 Lavatory (MD)

Designed and Tested by CSC for :

Design Loads Shock and Vibration Environmental Criteria Flammability

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AVIATION PRODUCTS

Honda Jet Structural component Parts

Honda Jet has passed FAA Certiticate in 2016 and CSC started to produce around 70 parts. Right now ,CSC ships 2 set monthly and estimates 4 set monthly end of this year.

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Windshield Dorsal Fin Retainers Assembly

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Vertical Skin Cap Assembly Horizontal Leading Upper and Lower Trailing Vertical Trailing Fairing Edge Tip Skin Edge Wing Skins Edge Assembly Fairing

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Upper Leading Trailing Edge Boat Tail Tailcone Wing to Body Fairings Electrical Service Flap Fairings Edge Pylon Cover Inboard Assembly with Land Door Lands Pylon Skin

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AVIATION PRODUCTS

Honda Jet Structural component Parts

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Forward Bag Floor Panels
Door Land
Aft Baggage Door
Main Entry Door Air Stair
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Copyright © TOPKEY Excellence In Composites

AVIATION PRODUCTS

Tail Boom Assemblies for MD900 MD600N MD520N

Includes: Tail Boom Assembly Horizontal Stabilizer Assy Thruster / Rotating Cone Assy Vertical Stabilizers (MD900) Graphite/Epoxy Honeycomb Primary Structures Delivered as Entire Shipsets Ready for Installation

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AVIATION PRODUCTS

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Black Hawk Draft Shaft Housing Curing Mold/Tooling Mold

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AVIATION PRODUCTS

S-92 (Sikorsky) Air Conditioning Duct Plaster Mold

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Copyright © TOPKEY Excellence In Composites

TP Composites Introduction

• Topkey has built 2 million M2 output production line.

• Topkey has developed 5 engineering plastic formulations and advanced engineering plastic formulations which were used in aviation almost complete.

• Leading industry with deep drawing fusion technology and one-time composite structure technology.

TP composite used in product design or most applied projects as follows:

Aerospace

• Aerial inside decoration

• Aerial structure or trailer

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AUTO
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• Car high temperature structure

• Car high attack parts and structure

• Car inside structure and decoration

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3C & Others
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• Consumer electronic structure, such like Laptop Tablet Smart Phone and VR

• Sports equipment parts

• Consumer products impact resistance structure

• Safety and protective parts

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New Business - Aviation

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• Giant commercial aircraft tail parts.

• Seaplane float parts.

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Copyright © TOPKEY Excellence In Composites

New Business - Aviation

• Giant commercial aircraft interior material and parts.

• Giant commercial aircraft Business class seats.

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Copyright © TOPKEY Excellence In Composites

New Business - Aviation

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• Composite material will be used on commercial Aircraft Dinner car

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Copyright © TOPKEY Excellence In Composites

New Business - Medical Devices

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Exoskeletion Robot Suit

Designed for military , service or construction use

Applications

Carry heavy loads , dangerous Environments and accident-prone work

Exoskeleton Robot

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Lower-Limb Type

The elderly , spinal cord Injury(SCI) patients

Applications

Not only give basic capacity such as walking , sitting-to standing motions also reduce leg loads for taking device accessories

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Upper-Limb Type

Weakened arm muscles or has been amputated or loss arms people

Applications

Providing the user to feed by themselves and basic living skills

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New Business – 3C Products

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• Application in laptop, tablet and Phone case.

• Recently many products have entered the brand development certification stage.

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New Business - Auto

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• Used in the car body structure and plate reinforcement.

• Currently working with a lots of depots design and development.

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Topkey Group-Revenue & Gross Margin Ratio

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NT$ Million Revenue Gross Margin Ratio
7,000 35.00%
6,651
6,557
6,500
6,270
6,216
6,048
6,000 5,875 30.00%
28.41%
27.22%
5,500 26.44%
25.74%
25.08%
5,000 24.18% 25.00%
4,500
4,000 20.00%
3,500
3,000 15.00%
2011 2012 2013 2014 2015 2016
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Note 2011 ROC GAPP 2012~2016 IFRS

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Copyright © TOPKEY Excellence In Composites

TOPKEY GROUP - After-Tax EPS

New Taiwan Dollars

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10
9 8.58
8
6.73
7
6.31
6.18
6.07
6
5.42
5
4
3
2
1
0
2011 2012 2013 2014 2015 2016
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Copyright © TOPKEY Excellence In Composites 035

Topkey Group Topkey Family. We Care.

Employees as important assets---

to fill their life rich and diversified increasing their humanistic literacy.

Growing Healthily

Regularly we hold sport competitions and activities. By participating sport competitions and club activities, to balance the staffs’ physical, mental, job and family perfectly.

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Corporate Social Responsibilities-Social care

From the begining…

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Corporate Social Responsibilities-Social care

2012-2016 Tai-Chung corporate volunteer day

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• 37 companies 821 volunteers

• 32 Social welfare organizations , 985 service objects

• Total 1,806 participants

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• 44 companies 1,200 volunteers

• 35 public interest proposal 990 service objects

• Total 2,000 participants

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• 20 companies 600 volunteers

• 15 Social welfare organizations ,600 service objects

• Total 1,200 participants

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• 33 companies 794 volunteers

• 25 Social welfare organizations 861 service objects

• Total 1,655participants

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Cor orate Social Res onsibilities-Social care p p

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Copyright © TOPKEY Excellence In Composites

THANK YOU For more information, please visit our website: http://www.topkey.com.tw

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