Froch Enterprise Co., Ltd. · TWSE:2030

Froch Enterprise — Taiwan Institutional Investors Conference 2017

28 slides from Froch Enterprise's conference presentation, Jun 27, 2017

1. Slide 1: Froch Taiwan Institutional Investors Conference

   彰源企業股份有限公司 FROCH ENTERPRISE CO., LTD. Froch Taiwan Institutional Investors Conference Stan Shih – Spokesperson 1 06/27/2017

2. Slide 2: Table of Contents

   1. Company Profile Table 2. Operational Briefing of 3. Competitive Advantage Contents 4. Looking Forward 2

3. Slide 3: 1. Company Profile

   1. Company Profile • Share Capital：NT$2.86 billion • Land Area：Taiwan 210,213m2, China 250,583m2 • Number of Employees：Taiwan 637, China 270 • Main Products：Stainless Steel Tubes, Pipes, Sheets, and Coils 3

4. Slide 4: Industry Properties

   Industry Steel Making Properties Slab Hot Rolled / Cold Rolled Froch Enterprise Co., Ltd. Froch Enterprise Co., Ltd. Construction Kitchenware Pulp and Paper Petrochemical Material Foods Sewage and Transportation and Beverage Water Treatment Medical Machinery / Electronics Electrical Equipment Fabric

5. Slide 5: Main Products

   Main Products Industrial Pipes： High quality Stainless Steel pipes for Heat Endurance, Corrosion Resistant, Pressure Endurance, etc. Applications: Chemical, Pulp and Paper, Foods and Beverage, Sewage and Water Treatment industries, etc. Structural Tubes： High quality Stainless Steel Round tubes, Squ

6. Slide 6: Stainless Steel Material

   Stainless Steel Material 6

7. Slide 7: Industrial Pipes

   Industrial Pipes 7

8. Slide 8: Industrial Pipes

   Industrial Pipes iW) Mygyy 0 a a a a BLL! LABL- LA >

9. Slide 9: Structural Tubes

   Structural Tubes 9

10. Slide 10: Structural Tubes

    Structural Tubes Mi fff//, “yileannness “aga

11. Slide 11: Sheets

    Sheets 11

12. Slide 12: Sheets and Plates

    Sheets and Plates 12

13. Slide 13: Industrial Pipes - Applications: Oil Refinery

    Industrial Pipes - Applications Oil Refinery 13

14. Slide 14: Industrial Pipes - Applications

    Industrial Pipes - Applications Foods and Beverage Petrochemical 14

15. Slide 15: Structural Tubes - Applications

    Structural Tubes - Applications Stair Handrail Boiler Doors / Windows 15

16. Slide 16: Stainless Steel Sheets and Coils - Applications

    Stainless Steel Sheets and Coils - Applications Escalators / Elevators 16

17. Slide 17: Stainless Steel Sheets and Coils - Applications

    Stainless Steel Sheets and Coils - Applications Skylight House 17

18. Slide 18: 2. Operational Briefing

    2. Operational Briefing  Industry Benchmark  Widely Approved by both domestic and global customers  Top tier player  Market diversification  Market leader  More than 2,000 customers domestically  Sales to more than 100 countries globally 18

19. Slide 19: 2. Operational Briefing - Year 2016

    2. Operational Briefing - Year 2016 Stainless steel tube and pipe: Domestic Sales - Export Sales – Taiwan Consumption Taiwan Export Quantity Others Froch Froch Others 25.4% 29% 30.8% 48% Y. C. Y.C. 23% 43.8% 19

20. Slide 20: 2. Operational Briefing - Cost

    2. Operational Briefing - Cost Inside Stainless Steel： 8% Cost percentage：50-60% 20

21. Slide 21: Last Year Prices: Nickel

    2. Operational Briefing – Last 2 Year Prices Nickel Prices Decreased 44% Increased 32% 21

22. Slide 22: Last Year Prices: Products

    2. Operational Briefing – Last 2 Year Prices Product Prices Decreased Increased 35% 35% 22

23. Slide 23: 2. Combined Sales and Profit

    2. Combined Sales and Profit Unit: 10.96 Billion Sales in NT$ Billion’s, EPS in NT$ Dollar’s S A L 1.08 3.17 Billion E S 0.74 S A E E L P P E S S S 2016 2017 Q1 23

24. Slide 24: 3. Competitive Advantages

    3. Competitive Advantages • Comprehensive Product Range - Customers satisfied with One-Stop shopping. 24

25. Slide 25: 3. Competitive Advantages

    3. Competitive Advantages B. Leading Production Capabilities among the Industry - First to be accredited with ISO-9001. Accredited with ISO-14001 by Lloyd’s Register Quality Assurance in 1999. Quality Assurance Laboratory was approved by Taiwan Accreditation Foundation (TAF) in 2001. Accredited with

26. Slide 26: 3. Competitive Advantages

    3. Competitive Advantages C. Complementary Domestic Sales of 40% with Export Sales of 60%. • Worldwide clientele More than 2,000 customers domestically. Sales to more than 100 countries globally. 26

27. Slide 27: 4. Looking Forward

    4. Looking Forward  Expand High Value-added Products  Expand Sales Channels and Sales Locations  Maintain Market Leader Position by Increasing Market Share 27

28. Slide 28: Thanks

    THANKS

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