ZIG SHENG — Investor Presentation 2015

Jun 16, 2015

Since 1969

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Ticker: 1455 TT

2015

INNOVATION

SPECIAL

FUNCTION

INTEGRATION

ENVIRONMENT

Com an Profile p y

• 1969 Company established & DTY 1[st] Plant start up

• 1992 DTY 2[nd] Plant start up

10 Production plants Fiber Business Division

• 1993 Listed on the Taiwan Stock Exchange

• 1997 ISO-9001 certified

• 1998 DTY 3[rd] Plant start up

• 1999 Nylon Spinning 1[st] Plant start up

• 2000 Nylon Polymerization 1[st] Plant start up

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3 DTY Plants
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DTY Plant Ⅰ DTY Plant Ⅱ DTY Plant Ⅲ
1969 1992 1998
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• 2004 “Innovative R&D center” founded.

• 2005 Nylon Polymerization 2[nd] Plant start up

• 2006 Compounding plant start up

• 2007 OHSAS-18000 certified

• 2010 ISO/ TS-16949 certified

• 2011 Nylon Polymerization 3[rd ] Plant ,

• Nylon Spinning 2[nd] Plant acquired  2012 ATY Plant, Nylon Spinning 2[nd] Plant start up

• 2013 Nylon Polymerization 3[rd ] Plant start up

• 2014 ISO 14064-1 certified, ISO 14001 certified

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2 Spinning Plants 1 ATY Plant
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PA6 Spinning Nylon Spinning ATY Plant 2012
Plant Ⅰ , 2000 Plant Ⅱ , 2012
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Chemical Materials Division

3 PA6 Polymerization Plants, 1 EPLA Plant

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PA6 Polymerization PA6 Polymerization PA6 Polymerization
Plant Ⅰ ,2001 Plant Ⅱ , 2005 Plant Ⅲ ,2013
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2

4 Main Products

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Fiber Division Chemical Division
3 Nylon6 Filament Vertical Integration 1 Nylon6 Chip
4 Nylon/Polyester DTY/ATY 2 EPLA
PTA, MEG CPL
1 Nylon Chip
Polyester Chip
Polyester POY 3 Nylon 2 EPLA
Filament
4 Polyester DTY 4 Nylon DTY
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3

Taiwan Market Share

Fiber Division Chemical Division

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Capacity (kt/yr) 60 57 200  220 10  12 Market Share (%) 22 % 8 % 22 % 11 %

Source: Taiwan Man-Made Fiber Industries Association, Taiwan Synthetic Resins Manufacturers Association

4

Sales Breakdown By Products (Q1 2015)

Turnover : USD 129,839,000 Fiber Business Division Chemical Materials Division

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DTY EPLA Domestic 80.1％ 3.2 ％ Domestic 51.6％ Export Export - China 8.8% - China 22.5% 28.9 ％ - Others 11.1% - Others 25.9% 50.4 ％ 17.5 ％ Nylon Filament Nylon Chip Domestic 73.3％ Domestic 27.0％ Export Export - China 7.7% - China 50.5% - Others 19.0% - Others 22.5%

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5

China and Taiwan Chemical Fiber Industry Comparison

• Characteristics of Chemical Fiber Industries

• Comparison of China vs. Taiwan Chemical Fiber Industry

CHINA

Bigger and Stronger

TAIWAN

Niche and Refinement

Vertical Integration Industries Integration Planned Economy Based on Export-Oriented Small and Domestic Demand Medium Business

• Commodity Grade Yarn Unprofitable

• No Function, No Fashion, No Sales

• Cost Basis Business Model is Not Enough

• • Emphasis on R&D, Innovation, in Combination with Brand

• • Self-Optimization

6

U turn 2009 vs 2015 p

• Crude Oil has Bottomed Out

• Textile Industry is Cyclical

2009 2015 Demand Shrank Oversupply Wheat from the chaff Excellence Cotton Driven Market[Low Raw Material Price ] Base There were Two Good ? Years

7

Conclusion

1. People's Disposable Income Has Increased

2. 4 Major Economic States Revived

3. People’s Spending Power Increased is a Fact

4. Crude Oil Rebound Favors Chemical Fiber Industry 5. Q2 Revival, What was Once Resistance of Nylon will Becomes Booster

5. Profitability Stability Expected with Aid of DTY Brands and Replacement of Old Equipments.

8

Q ＆ A

THANKS

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INNOVATION

SPECIAL

FUNCTION

INTEGRATION

ENVIRONMENT