TTC — Investor Presentation 2019

Jan 3, 2019

台灣農林股份有限公司

==> picture [52 x 72] intentionally omitted <==

==> picture [246 x 55] intentionally omitted <==

----- Start of picture text ----- 2018 Investor Conference----- End of picture text -----

1

==> picture [842 x 42] intentionally omitted <==

----- Start of picture text ----- 免責聲明 Disclaimer----- End of picture text -----

• 本次簡報與討論包含特定預測性的說明，而其內容有關於營運結果、財務狀況，以 及對未來事件的預期。因為此等前瞻性說明是有關於未來事件，而且取決於未來發 生時的環境因素，所以必然含有風險與不確定性。

• 本公司將不負擔公開更新或修改這些預測性的說明之義務，無論是出現新資訊、未 來發生任何事件，或其他情況。實際結果可能與此等預測性說明推測的內容有重大 差異。

• In these presentations and discussions, there are certain forward looking statements regarding the results of operation, financial condition and current expectation abort future events. As forward-looking statements relate to events and depend on circumstances in the future, they involve risk and uncertainty.

• We do not undertake any obligation to publicly revise or update any forward looking statements for availability of new information, future events or otherwise. Real result probably differ substantially from those expected in these forward-looking statements.

2

==> picture [842 x 42] intentionally omitted <==

----- Start of picture text ----- Conference Agenda------ End of picture text -----

Agenda Time Ms. Chin Yen Lin Opening 5mins (Chairperson) Mr. Steven Teng Company profile & prospect 35mins (Director) Ms. Chin Yen Lin Q&A 20mins Mr. Steven Teng

3

==> picture [842 x 42] intentionally omitted <==

----- Start of picture text ----- Operation Strategy------ End of picture text -----

==> picture [768 x 415] intentionally omitted <==

----- Start of picture text ----- Increase asset valueStrengthen technical capabilitiesReaching revenue target----- End of picture text -----

4

==> picture [842 x 42] intentionally omitted <==

----- Start of picture text ----- Increase Asset Value Operation Strategy------ End of picture text -----

Low density scattered land

• Disposal of assets

• Cooperative operation of solar energy facilities

Land with development and operation value

• Development Asset

• (Industrial and commercial complex, residential area, recreation area)

• Recreational Farm

• Cooperative operation of solar energy facilities

Land suitable for farming

• Tea tree, camellia tree, coffee, fruit tree planting

• Agricultural product processing plant

Inventory of land assets

5

==> picture [842 x 42] intentionally omitted <==

----- Start of picture text ----- Operation Strategy- Strengthen technical capabilities----- End of picture text -----

Tea planting management technology

• Automatic mechanization management

• Crop physiology, fertilizer, pests and

  • diseases management

• Water saving irrigation technology

Tea processing technology

• Digital management of tea processing technology

• Improved design tea processing equipment

• Process parameter digital management

Integrated management technology

• Sensor components to record atmospheric, soil, and production tool parameters

• IOT -> Big Data -> AI Agriculture

6

==> picture [842 x 46] intentionally omitted <==

----- Start of picture text ----- Incresse Asset Value -【Large land development cases】----- End of picture text -----

Processing cases

TTC Sanyi Industrial/Commercial Park

• In 2010, completed water conservation and land

• preparation

• In 2011, completed revising land functional zone

• Architecture design and investment plan

Miaoli Tongluo Industrial/Commercial Park

• In 2019, completed water conservation and land

• preparation

• In 2019, applying to revise land functional zone

• Architecture design and investment plan

Miaoli Tongluo Residential Project

• In 2019, completed water conservation and land

• preparation

• In 2019, applying to revise land functional zone

• Architecture design and investment plan

Sun Moon Lake Hotel Project

• In 2015, acquired land development permission

• In 2018, acquired water conservation and land

• preparation permission

• Connecting road required

==> picture [806 x 289] intentionally omitted <==

----- Start of picture text ----- Miaoli Tongluo Industrial/Commercial ParkTTC Sanyi Industrial/Commercial ParkL a n d D e v e l o p m e n t Sun Moon Lake Hotel Project Miaoli Tongluo Residential ProjectP r o c e d u r ePreparation • Professional Planning • Master Plan Plan Reviewing • Construction • Land Preparation Operation • Business Partners••• Planning Team Marketing Financing Land selecting ••• Environmental Assessment Procedure control Architecture Design • Development Permission Environmental Assessment Reviewing ••• Water Conservation Work Public Facilities Preparation Architecture ••• Seeking Investment Plan Operation Finance Management and Cooperation• Water Conservation • Building ConstructionReviewing----- End of picture text -----

7

==> picture [842 x 46] intentionally omitted <==

----- Start of picture text ----- Incresse Asset Value -【 Low density land development cases】----- End of picture text -----

□S e l e c t a p p r o p r i a t e l a n d t o b u i l d l o w d e n s i t y r e c r e a t i o n a l f a r m □M e e t s l o c a l s i g h t s e e i n g a r e a d e v e l o p m e n t t r e n d □F o r m o u r r e c r e a t i o n a l f a r m b u s i n e s s o p e r a t i n g s y s t e m

Ta o y u a n M i a o l i Ta i p e i D a x i To n g l u o N a n t o u S a n x i a Y u c h i Lakeside Tea Farm Ecological Leisure Life Tea Farm Landscape Experience Exploring Shimen Forest XionKong Miaoli JiaoHu Nantou LuGou recreational farm recreational farm recreational farm

Nantou LuGou

recreational farm

recreational farm

• In 2013 Development permission approved

  - In 2017 Environmental assessment approved 
  

  • In 2017 Development permission approved

• In 2016 Development permission approved

  • In 2014 water conservation plan approved

• In 2017 Water conservation plan approved

     - In 2018 Development permission approved 
  
  - In 2018 Building modified permission 
  

  • In 2017 Completed water conservation and land preparation

• In 2018 Completed water conservation and land preparation

     - Water conservation plan reviewed 
  
  - Plan of second stage recreational farm development 
  

  • In 2018 Recreational farm registered

• Architecture design and Building permission

==> picture [183 x 46] intentionally omitted <==

==> picture [173 x 32] intentionally omitted <==

==> picture [185 x 23] intentionally omitted <==

8

==> picture [822 x 46] intentionally omitted <==

----- Start of picture text ----- Incresse Asset Value -【 Solar energy development cases】----- End of picture text -----

L a n d u s e d i v e r s i f i c a t i o n

==> picture [361 x 375] intentionally omitted <==

==> picture [107 x 14] intentionally omitted <==

----- Start of picture text ----- Solar energy zone----- End of picture text -----

• L a n d p e r m i s s i o n

• L a n d • V e n d o r c o o p e r a t i o n

• d e v e l o p m e n t p o t e n t i a l • L o n g t e r m b e n e f i t Roof solar energy system

• B u i l d i n g s p a c e • M u l t i p l e u s e o f m u l t i p l e u s e b u i l d i n g r o o f • B u i l d i n g b e a u t i f i c a t i o n • E n e r g y s a v i n g Land lease

• I n c r e a s e • S h a r e p r o f i t w i t h

• s p o r a d i c l a n d p a r t n e r v a l u e • I n c r e a s e a d j a c e n t l a n d v a l u e

• C l e a n e n e r g y a n d Facilities Recycling

• c i r c u l a t o r y • V e n d o r c o o p e r a t i o n s y s t e m

  • W a s t e u t i l i z a t i o n

==> picture [277 x 35] intentionally omitted <==

E n e r g y s e l l i n g p r o f i t

9

==> picture [757 x 42] intentionally omitted <==

----- Start of picture text ----- Increase Assets Value – Recreational Business----- End of picture text -----

==> picture [781 x 161] intentionally omitted <==

==> picture [142 x 202] intentionally omitted <==

----- Start of picture text ----- DAXI TEAFACTORYArea:3.7 ha----- End of picture text -----

==> picture [142 x 202] intentionally omitted <==

----- Start of picture text ----- TONGLUOTEAFACTORYArea:30 ha----- End of picture text -----

==> picture [143 x 202] intentionally omitted <==

----- Start of picture text ----- ANTIQUEASSAM TEAFARMArea:21 ha----- End of picture text -----

==> picture [170 x 194] intentionally omitted <==

----- Start of picture text ----- XIONGKONGTEAGARDENArea:168 ha(Tea gardenApprox 5.6 ha----- End of picture text -----

Coming soon: LUGAO COFFEE GARDEN

10

2017年整修訪客中心, 增設山林咖啡屋,展售有機生態茶與商品, 提供健康簡餐服務外,製茶廠導覽 亦是不可多得的知性之旅.

==> picture [281 x 219] intentionally omitted <==

==> picture [220 x 177] intentionally omitted <==

==> picture [267 x 209] intentionally omitted <==

==> picture [198 x 158] intentionally omitted <==

==> picture [132 x 195] intentionally omitted <==

==> picture [305 x 208] intentionally omitted <==

==> picture [133 x 167] intentionally omitted <==

==> picture [193 x 101] intentionally omitted <==

11

場區廣植山林植栽, 春櫻,李,杜鵑, 夏杉, 秋楓, 冬梅,落羽松. 其四季生態之美不僅侷限於有機而已.

==> picture [214 x 146] intentionally omitted <==

==> picture [232 x 181] intentionally omitted <==

==> picture [204 x 145] intentionally omitted <==

==> picture [200 x 282] intentionally omitted <==

==> picture [187 x 157] intentionally omitted <==

==> picture [217 x 153] intentionally omitted <==

12

DALIAO HISTORICAL HOUSE-

本館為日據年代日本場長宿舍, 2013年以古法修繕後開放. 館內具茶文演繹記事. 品茗論茶外,以 傳遞茶道文化服務為旨. 二館為80年代建物,外觀改建保留質樸的磨石子牆,內部打造茶即是禪的靜 謐空間.

==> picture [167 x 235] intentionally omitted <==

==> picture [334 x 210] intentionally omitted <==

==> picture [231 x 164] intentionally omitted <==

==> picture [285 x 180] intentionally omitted <==

==> picture [287 x 181] intentionally omitted <==

==> picture [214 x 135] intentionally omitted <==

13 13

展售滋味醇厚,獨一無二,復育於700公尺山頭,無施肥35年以上的[野放茶]與[古樹茶]. 館內並常策 劃茶席,茶藝,美學,藝展, 與訪客茶文交流.

==> picture [194 x 122] intentionally omitted <==

==> picture [190 x 228] intentionally omitted <==

==> picture [191 x 186] intentionally omitted <==

==> picture [219 x 137] intentionally omitted <==

==> picture [211 x 255] intentionally omitted <==

==> picture [205 x 130] intentionally omitted <==

==> picture [239 x 176] intentionally omitted <==

==> picture [187 x 100] intentionally omitted <==

14

DAXI TEA FACTORY-

曾走過製茶榮景,祝融肆虐,也曾落盡繁華休廠. 2013年修繕完成, 以茶產教育結合文化觀光,連續獲 頒經濟部觀光工廠認證. 百年茶廠,風華再現.

==> picture [239 x 205] intentionally omitted <==

==> picture [254 x 188] intentionally omitted <==

==> picture [250 x 170] intentionally omitted <==

==> picture [829 x 322] intentionally omitted <==

----- Start of picture text ----- 15 15----- End of picture text -----

以導覽其百年製茶,茶廠建築,人文歷史為導向,推展在地、有機、自然的乾淨好茶與時令舒(蔬)食. 進而傳遞日常生活美學

==> picture [199 x 334] intentionally omitted <==

==> picture [300 x 189] intentionally omitted <==

==> picture [272 x 150] intentionally omitted <==

==> picture [243 x 153] intentionally omitted <==

==> picture [243 x 132] intentionally omitted <==

==> picture [244 x 189] intentionally omitted <==

==> picture [59 x 104] intentionally omitted <==

==> picture [272 x 163] intentionally omitted <==

16

2016年中旬正式營運. 茶廠視野寬廣遼闊, 茶園景緻一覽無遺. 訪客可參與DIY茶園採製茶活動, 近距離接觸茶了解茶外, 進而認知好茶製作.

==> picture [250 x 157] intentionally omitted <==

==> picture [278 x 197] intentionally omitted <==

==> picture [251 x 182] intentionally omitted <==

==> picture [250 x 191] intentionally omitted <==

==> picture [243 x 169] intentionally omitted <==

==> picture [250 x 172] intentionally omitted <==

17

主要茶產多以自然農法有機栽種,東方美人茶, 蜜韻紅茶最為獨特,亦是主要銷售. 訪客的一日茶農, 四季晴雨的茶園步道體驗, 更是廣為好評.

==> picture [239 x 151] intentionally omitted <==

==> picture [282 x 178] intentionally omitted <==

==> picture [212 x 203] intentionally omitted <==

==> picture [239 x 184] intentionally omitted <==

==> picture [306 x 193] intentionally omitted <==

18

2004年後重新建造並開始規劃轉型，從單純的製茶廠轉型成兼具生產紅茶、有機農業、推廣健康 飲食與環境觀光茶廠。

==> picture [440 x 281] intentionally omitted <==

==> picture [262 x 150] intentionally omitted <==

==> picture [338 x 196] intentionally omitted <==

==> picture [262 x 166] intentionally omitted <==

19

茶葉通過「慈心」的有機認證, 持續朝向尊重生命和大自然的耕作方式邁進.

==> picture [205 x 254] intentionally omitted <==

==> picture [134 x 135] intentionally omitted <==

==> picture [326 x 174] intentionally omitted <==

==> picture [326 x 168] intentionally omitted <==

==> picture [185 x 353] intentionally omitted <==

20

LUGAO COFFEE GARDEN- Coming soon

預計2019年中營運,位於鹿篙咖啡園中,群山環繞,健康,樂活與土地共生.

==> picture [258 x 145] intentionally omitted <==

==> picture [251 x 142] intentionally omitted <==

==> picture [256 x 145] intentionally omitted <==

==> picture [257 x 145] intentionally omitted <==

==> picture [272 x 153] intentionally omitted <==

==> picture [155 x 140] intentionally omitted <==

==> picture [260 x 195] intentionally omitted <==

==> picture [173 x 231] intentionally omitted <==

21

==> picture [693 x 42] intentionally omitted <==

----- Start of picture text ----- Tea garden/factory distribution----- End of picture text -----

==> picture [135 x 54] intentionally omitted <==

----- Start of picture text ----- Area: 3.9 ha----- End of picture text -----

==> picture [280 x 38] intentionally omitted <==

----- Start of picture text ----- DAXI TEA FACTORY----- End of picture text -----

==> picture [215 x 12] intentionally omitted <==

----- Start of picture text ----- Cultivars : Green tea & black tea----- End of picture text -----

==> picture [273 x 76] intentionally omitted <==

==> picture [274 x 147] intentionally omitted <==

----- Start of picture text ----- SANYI、TONGLUOTEA FACTORYArea: 40 haCultivars : Oriental Beauty Tea----- End of picture text -----

==> picture [236 x 52] intentionally omitted <==

----- Start of picture text ----- XIONGKONG TEAGARDENArea: 6 ha----- End of picture text -----

==> picture [254 x 14] intentionally omitted <==

----- Start of picture text ----- Cultivars : Organic Green Tea, black tea----- End of picture text -----

==> picture [257 x 88] intentionally omitted <==

----- Start of picture text ----- and Oolong Tea----- End of picture text -----

==> picture [135 x 45] intentionally omitted <==

ANTIQUE ASSAM TEA FARM

==> picture [76 x 12] intentionally omitted <==

----- Start of picture text ----- Area:21 ha----- End of picture text -----

Cultivars : TTES No. 8 、 No. 18 、 No. 21

==> picture [250 x 102] intentionally omitted <==

Laupi Tea Farm

Area:717 ha(Tea Garden Approx. 470ha) Cultivars: TTES No. 8,No. 2,No. 17,No. 18, Chin-Shin Da Pan and Shi-Ji-Chun (Four Season)

22

==> picture [843 x 568] intentionally omitted <==

----- Start of picture text ----- Strengthen technical capabilities- Result【Laupi Tea Farm】科技Technology生態Ecology食安Food safetyPhase 1Achievement ： Phase 2 Complete Planting thefirst & second phase(240 ha). Automatic mechanized Phase 4Phase 3tea harvesting. Tea factory and Storagearea are underconstruction. Start third phaseplanting. 23----- End of picture text -----

==> picture [842 x 42] intentionally omitted <==

----- Start of picture text ----- Estimation of tea production in the next seven years----- End of picture text -----

Estimated total tea production (tons)

==> picture [593 x 348] intentionally omitted <==

----- Start of picture text ----- 5,000 4,500 1,000 1,000 4,000 944 3,500 820 3,000 617 2,500 2,0003,553 3,5533,353 1,500 364 2,9122,191 1,0001,295 500 99 350 -2019 2020 2021 2022 2023 2024 2025----- End of picture text -----

農林其他茶區及 外購 老埤農場

Expected profit

Up to 3500 tons of production capacity

24

==> picture [653 x 42] intentionally omitted <==

----- Start of picture text ----- Tea industry analysis----- End of picture text -----

Market demand

==> picture [79 x 65] intentionally omitted <==

----- Start of picture text ----- Business----- End of picture text -----

• Taiwan's tea import volume/value are still greater than export volume/value 、

• 2017 export volume 8,720 tons import volume32,019 tons 、

• export value NT$ 2.72 billion import value NT$2.61 billion

(References : COA Statistical Database)

• Demand for Taiwan's tea in international market still growing

Technical feasibility

==> picture [81 x 64] intentionally omitted <==

----- Start of picture text ----- Ability----- End of picture text -----

 In Taiwan, TTC hold the most advanced scientific management technology. Laupi Tea Farm could harvest 6~7 time with production of 3,500 tons of tea a year and providing. customers with stable supply of tea and price.

• Continuously improve the stats of art tea making technology and provide customized product services.

• Create production, recreation & tea culture

Video:

settlement.

25

http://www.ttch.com.tw/about/information

==> picture [842 x 42] intentionally omitted <==

----- Start of picture text ----- Prospects ------ End of picture text -----

Increase asset value

• Vitalize land development create more lease or cooperation to increase profitable space.

• Vitalize land integration to settle the foundation for asset appreciation.

==> picture [88 x 85] intentionally omitted <==

Strengthen technical capabilities

• Provide tea products with more safety, stable quality, supply and price to expand the commercial tea market.

• Expect to gain profit from year 2020 to 2021 .

• At year 2024 to 2025, the tea production will reach more than 3,500 tons per year.

• Export smart AI farm technology to increase revenue and production, expand foreign markets.

==> picture [88 x 85] intentionally omitted <==

Reaching Performance goal

26

==> picture [843 x 125] intentionally omitted <==

----- Start of picture text ----- Q & A----- End of picture text -----

==> picture [110 x 51] intentionally omitted <==

27

Company address: 15F., No.3, Park St., Nangang Dist., Taipei City 115, Taiwan (R.O.C.) TEL：+886-2-26557799 Http：www.ttch.com.tw 28