Taiflex Scientific Co., Ltd.

HSBC Technology Day

Feb 25-26, 2015

The above statements that pertain to future projections constitute the expectations, opinions,

outlooks, or predictions of our company and its affiliates based on information available at the

time the statements were made. Such statements may be affected by known and unknown

risks and inherent uncertainties, the existence or emergence of facts or factors that differ from

the assumptions, suppositions, or judgments of the Company, or other factors. Consequently,

there may be significant discrepancies between actual results pertaining to the Company's

future earnings, management results, financial conditions, and other matters as explicitly or

implicitly referred to in the statements and the content of such statements.

The presentation is run exclusively for the purpose of providing information and not for the

purpose of soliciting investments or recommending the buying or selling of specific shares or

products. Company makes no warranty concerning the accuracy or completeness of the

information and will not be liable for any damages arising out of use of the Information thereof.

本報告內容係依現有資訊而做成，上述說明中的財務或相關資訊可能包含一些對本公司及

其子公司未來前景的說明，這些說明易受重大的風險和不確定性因素影響，致使最後結果

與原先的說明迥異，是本公司特此聲明，本報告中的內容，僅為資訊流通之目的而公佈，

並非投資建議，本公司不對報告內容的正確性、完整性或任何使用本報告內容所產生的損

害負任何責任。

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Disclaimer

Taiflex Scientific Co., Ltd. All Rights Reserved

Outline

＊Overview

＊Industry

＊Financial Results

Taiflex Scientific Co., Ltd. All Rights Reserved 3

Overview Date of Est. : Aug. 1997

Market Cap. :US$ 292 millions (as of Dec 31, 2014)

Shares Outstanding : 204,261 thousand.

Number of Employees: 1,066 ppl.

The Board of Directors & Management Team (11%)

Production Sites:

(1) 3 Kaohsiung Factory No. 1, No.2, and No.3,

(2) Kunshan, China Factory No. 4,

(3) Koatech Technology Corp. (53.86% owned) in Hsin Chu

Main Products:

(1) Electronic material :

FCCL, Cover layer, Stiffeners, Composite Film, Bonding sheet.

(2) PV Backsheet

Taiflex Scientific Co., Ltd. All Rights Reserved 4

Production Base inTaiwan

Location: Kaohsiung

/Taiwan

Guandong Sales office

Location:

Zhuhai.Shenzhen/China

Taipei Sales Office

Location: Taipei/Taiwan

Production base in China

Location: Kunshan/China

Beijing Sales Office.

Sales Office

Production Base

Plant#1

Plant#2

Plant#3

KunShan

Global Service Locations

Taiflex Scientific Co., Ltd. All Rights Reserved 5

Qinhuangda

o

Qinhuangdao Sales Office.

Xiamen Sales Office.

Outline

＊Overview

＊Industry-Electronic Material & PV

＊Financial Results

Taiflex Scientific Co., Ltd. All Rights Reserved 6

Outline

＊Overview

＊Industry-Electronic Material

＊Financial Results

Taiflex Scientific Co., Ltd. All Rights Reserved 7

Taiflex Scientific Co., Ltd. All Rights Reserved

Core Technologies

Source: Taiflex

8

S-sided FCCL

D-sided FCCL

S-sided FCCL

D-sided FCCL

Cu Ad PI

Cu Ad PI Ad Cu

Cu PI

Cu TPI Cu

Adhesive-Based ( 3 layer) Series

Adhesiveless ( 2-layer) Series

Cover Layer

Bonding

Sheet

Composite PI

Stiffener

Liner Ad PI

Liner Ad Liner

PI Ad PI

Patented

Liner Ad PI Ad PI Ad PI

FPC-related Series

Products Introduction: Electronic Material

9

Taiflex Scientific Co., Ltd. All Rights Reserved

Source: Taiflex

Global FPC Market Growth

Taiflex Scientific Co., Ltd. All Rights Reserved

Source: Fuji Chimera, 2014

10

2011 2012 2013 2014(e) 2015(f) 2016(f) 2017(f) 2018(f)

Single & Double side FPC (Y/Y) - 18.7% 26.6% 4.7% 4.1% 4.5% 4.3% 4.2%

Multi-Layer FPC(Y/Y) - 8.0% 5.4% -2.0% -0.3% -0.5% -0.6% -0.3%

Single & Double side FPC 765,900 909,500 1,151,000 1,205,000 1,254,000 1,310,000 1,366,300 1,423,600

Multi-Layer FPC 112,000 121,000 127,500 125,000 124,600 124,000 123,200 122,800

-10%

0%

10%

20%

30%

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Million Yen

FPC Application

Taiflex Scientific Co., Ltd. All Rights Reserved

Source: Prismark, 2014

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Power/ Earphone Socket/

Loudspeaker Module

Home Key (Fingerprint Identification Key)

Battery Module

Touch Panel Module

LCM Module

Power Switch & Voice Control Module

Front Camera Module

Light Bar

Speaker Module Backend Camera Module

Wi-Fi Antenna

Antenna

FCCL Application – Smartphone Teardown

Taiflex Scientific Co., Ltd. All Rights Reserved Source : Taiflex 12

1. In 2014, the smartphone growth rate is 27.0%, while total mobile phone market

grows only 0.9%.

2. In 2014, it is expected to grow 16.4% in total smartphone. 13

Smartphone Growth Trend

Source : IEK 2014/11

14

Smartphone Top 10 in 2014 3Q

Source : Gartner 2014/11

UNIT: K

China and India's brand adopted low-cost strategy was worked, eroded the market share of international companies, had occupied six rankings.

Outline

＊Overview

＊Industry-PV

＊Financial Results

Taiflex Scientific Co., Ltd. All Rights Reserved 15

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Source: Taiflex

Products Introduction: PV Backsheet

Taiflex Scientific Co., Ltd. All Rights Reserved

Taiflex Backsheet

PolySilicon

• OCI (KR)

• GCL (CN)

• Wacker (DE)

• Hemlock

(US)

Solar Wafer

• GCL (CN)

• LDK (CN)

• Renesolar

(CN)

• Green

Energy (TW)

Solar Cell

• Yingli (CN)

• Renesolar (CN)

• JA Solar (CN)

• Canadian solar

(CN)

• Trina (CN)

Module

• Trina (CN)

• Yingli (CN)

• Canadian solar

(CN)

• Renesolar (CN)

• Hanwha (KR)

Solar System

• First Solar (US)

• SunEdison

(US)

• Belectric (DE)

• China Power

Investment

(CN)

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Source: Taiflex

Products Introduction: PV Backsheet

Taiflex Scientific Co., Ltd. All Rights Reserved

Structure:

DuPontTM Tedlar@

Weather Resistant Film

DuPontTM Tedlar@

Weather Resistant Film

Adhesive

PET Film

Market Research

Source 2014 (GW) 2015 (GW) YOY(%)

Solarbuzz 49.8 60.2 21%

Photon 47.7 56.8 19%

IHS 45.4 52.5 16%

1. The growth rate of global solar installation in 2015 is overall estimated to be

19% compared to the one in 2014.

2. Solar market growth is motivated by China, Japan and America.

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Global Solar Est-Installation in 2015

Outline

＊Overview

＊Industry

＊Financial Results

Taiflex Scientific Co., Ltd. All Rights Reserved 19

Historical Business Performance:

2008 ~ 2014

Taiflex Scientific Co., Ltd. All Rights Reserved

Unit ：NT$ Million

2012 to 2014 financial statement follows IFRSs

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3,259

3,909

6,860 6,485 7,853

10,138 10,128

20.7% 22.6%

24.3%

21.5% 19.9%

21.4%

22.3%

0%

5%

10%

15%

20%

25%

30%

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010 2011 2012 2013 2014

Net Revenue GM (%)

Sales Breakdown: 2008 ~ 2014

Unit ：NT$ Million

Taiflex Scientific Co., Ltd. All Rights Reserved

2012 to 2014 financial statement follows IFRSs

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3,085 3,276 3,765 3,598 4,572

5,232 5,530 168

614

2,949 2,600

3,064

4,762 4,304

6 19

146 287

217

144 294

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010 2011 2012 2013 2014

Electronic Material PV Others

Sales Breakdown: 2008 ~ 2014

Taiflex Scientific Co., Ltd. All Rights Reserved 22

95%

84%

55% 55% 58% 52% 55%

5%

16%

43% 40% 39%

47% 42%

0% 0% 2% 4% 3% 1% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014

Electronic Material PV Others

NTD('million) 2008 2009 2010 2011 2012 2013 2014 YoY

Net Revenue 3,259 3,909 6,860 6,485 7,853 10,138 10,128 -0.1%

Gross Margin 673 883 1,665 1,393 1,564 2,170 2,257 4.0%

Operating

Expense 406 402 635 706 781 1,057 1,247 18.0%

Operating

Profit 267 481 1,030 687 783 1,112 1,011 -9.1%

Net Profit 230 364 780 563 623 1,005 885 -11.9%

EBITDA 506 671 1,182 1,010 1,070 1,557 1,456 -6.5%

EPS (dollars) 1.41 2.24 3.87 2.76 3.08 4.96 4.32 -12.9%

Consolidated Income Statement

Taiflex Scientific Co., Ltd. All Rights Reserved

2012 to 2014 financial statement follows IFRSs

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NTD('million) 2008 2009 2010 2011 2012 2013 2014

Cash 1,569 1,816 3,300 2,945 2,571 3,529 3,406

Accounts

Receivable 1,030 1,313 1,684 1,874 3,010 4,191 4,684

Inventories 816 979 1,092 1,337 1,038 957 926

Total Assets 4,995 5,556 8,126 8,966 9,452 11,595 12,180

Short-term

loans 467 605 1,051 1,430 1,253 1,051 1,219

Total Liability 1,515 1,893 3,514 3,680 3,901 5,191 5,424

Total Equity 3,480 3,663 4,612 5,286 5,551 6,404 6,756

Balance Sheet Summary

Taiflex Scientific Co., Ltd. All Rights Reserved

2012 to 2014 financial statement follows IFRSs

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Statement of Cash Flows Summary

NTD('million) 2008 2009 2010 2011 2012 2013 2014

Consolidated Net Profit 230 364 783 554 738 1,279 885

Bad debt expenses 7 5 10 30 21 74 238

Depreciation and Amortization

Expenses 196 194 222 241 265 256 282

Decrease (Increase) in Inventories (130) (224) (166) (315) 265 40 36

Decrease (Increase) in Receivables 23 (272) (346) (220) (1,174) (1,269) (828)

Increase (Decrease) Payables (225) 351 291 (161) 465 613 388

Net Cash Generated by (Used in)

Operating Activities 349 600 1,014 181 482 867 1,011

Capital Expenditures (63) (70) (416) (866) (150) (458) (308)

Net Cash Generated by (Used in)

Investing Activities (47) (18) (525) (860) (110) (356) (367)

Net Cash Generated by (Used in)

Financing Activities 314 (302) 1,018 261 (721) 416 (803)

Taiflex Scientific Co., Ltd. All Rights Reserved

2012 to 2014 financial statement follows IFRSs 25

2015Q1 Business Guidance

Taiflex Scientific Co., Ltd. All Rights Reserved

Guidance QoQ YoY

Consolidated Revenue 1,850– 2,250 Million -17.6% -6.8%

Electronic Materials 1,050 – 1,250 Million -18.8% 12.1%

PV Back sheet 750 – 900 Million -18.6% -26.7%

Consolidated Gross

Margin 21 ± 2%

Consolidated

Operating Profit 11 ± 2%

NOTE：QoQ & YoY are calculated by the median of expected revenue. 26

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Taiflex Scientific Co., Ltd. All Rights Reserved