Nan Ya Plastics Operations & Prospects

1. Nan Ya Plastics Operations & Prospects March 2011

2. Agenda • Page • Overview ‥‥‥‥‥‥‥‥‥‥‥‥‥‥ 2∼6 • Strategy & Competitive Advantages‥‥‥ 7∼8 • Operating Performance ‥‥‥‥‥‥‥‥ 9∼10 • Investment Income ‥‥‥‥‥‥‥‥‥‥ 11 • Capital Expenditure ‥‥‥‥‥‥‥‥‥ 12 • Capacity & Expansion ‥‥‥‥‥‥‥‥ 13∼19 • Financial Ratio ‥‥‥‥‥‥‥‥‥‥‥ 20 • Comparison of Top 5 Competitors‥‥‥‥ 21∼24

3. OverviewHighlights • Member of the Formosa Plastics Group (FPG) • The 6th largest private company in Taiwan in terms of market capitalization • Annual revenue of US$ 7 billion with 4 major businesses: sales breakdown - 15% in plastics, 19% in electronic materials, 16% in fibers, and 47% in Chemicals • Market capitalization of US$ 23 billion • 51 manufacturing plants in Taiwan, 23 manufacturing plants in China, 4 and 3 manufacturing plants in USA and Vietnam respectively. • Leading market positions • World’s #1 manufacturer of secondary plastics • World’s #1 manufacturer of copper clad laminates • World’s #3 producer of polyester fibers

4. OverviewHistory China Investment (Plastics) Vietnam Investment (Polyester) 6th Naphtha Cracker Project Polyester staple PU leather PP film Glass fiber yarn, cloth and POY BPA-4 & EG-4 startup Expanding scale of CCL in China 2009 2007 2003 1969 1974 1981 1985 1994 1998 1958 1971 1976 2010 1984 1989 2008 1995 2000 2004 Textured yarn PVC Rigid film China Investment (Chemicals) Nan Ya America established Nanya Technology established Incorporation First PVC sheet production PCB & CCL China Investment (Electronics) China Investment (Polyester) Glass fiber-3 & Glass fiber cloth-3 in China startup • 1950’s - 1960’s : Production of PVC secondary plastics in Taiwan • 1970’s : Began manufacturing polyester fiber, expanding scale and varieties of plastics processing products • 1980’s : Entered electronics business, growth in polyester and plastics • 1990’s : Plastics and polyester facilities in the US commissioned, manufacturing of plastics initiated in China, construction of specialty chemicals in No. 6 Naphtha Cracker Project completed, and subsidiary for DRAM manufacturing stated production • 2000’s : Production facilities for electronic materials in China commissioned • 2007’s : BPA-4 and EG-4 plant of the phase-four expansion project in Mailiao complex started operation • 2008’s : Glass fiber & glass fiber cloth of phase-three expansion in China started operation • 2009’s : Expanding scale of CCL in China and started mass production in Hui Zhou • 2010’s : Chemical products including BPA & DEHP investment in China

5. Plastics I Engineering OverviewCorporate Structure Plastics III Chemicals II Electronic Materials Plastics II Chemicals I Chemicals III Polyester Fibers • CCL • Epoxy Resin • Glass Fiber Cloth • Copper Foil • STN LCD • PVC Sheeting • Rigid PVC Film • PP Paper • PU Leather • PVC Pipes • BOPP Film • Engineering Plastics • BPA • 1.4 BG • PVC Stablizers • Switching Gears • Rollers • Molding Equipment • FactoryEquipment • PA • 2EH • DEHP • DINP • DIDP • SMC Doors • Vinyl Windows • Door Frames • EG • Filament • Staple • Chips • Film • Dyeing • Finishing • Dry Film Chemicals Others Plastics Polyester Electronics

6. OverviewSubsidiaries

7. OverviewSubsidiaries (Hong Kong)

8. Backward Integration Product Diversification Establish Production Base in China and Vietnam Strengthen R&D Capability Strategy • 6th Naphtha Cracker • Polyester products (e.g. EG) • Electronic products Secure stable and low cost raw materials • High margin products • High value-added chemical & polyester fiber • Electronic products Increase profitability and market share Rising weight of chemical and electronic products to maintain profitability Transform into Chemical and Electronic Products • Enhancing investment of chemical and electronic productions (e.g. MA, CCL (Kunshan) and Nan Ya PCB) Support relocation of downstream customers and profit from rapid growth in China and Vietnam • PVC sheeting, leather, pipes,fittings & PU leather • Electronic products • Polyester fiber As a main product base, Taiwan mother company also formed as a R&D center, supporting required technology to overseas investee companies • Optical PET film for backlight module, anti glare PET film for LCD • Speciality chemicals (Nonyl Phenol free and 3P free Ba/Zn Stabilizer, IC Encapsulation Epoxy) • PCB material (A glass fiber desizing can improve the efficiency of the components of sizing, high thermal-conductive resin composition for PCB)

9. Competitive Advantages • Economies of Scale • World’s #1 manufacturer of secondary plastics and CCLs • World’s #3 producer of polyester fiber • Customer Oriented • Expansion in line with the needs of our customer and market • Backward Integration • Purchase PVC resin and PTA from FPC and FCFC • Self-production of EG, copper foil, glass fiber cloth, epoxy resin and DEHP • Purchase glass fiber from PFG • Completely backward integration from PCB to glass fiber in the world • Self-Sufficient in Power • Reduce manufacturing costs and secure power supply • Using Financial Strength • Lower cost and provide readily available financing • Internal Construction and Engineering Departments • Lower capital expenditures while integrating research with manufacturing to improve production efficiencyand predictive maintenance • Focused Management • Long-term strategy with a flexible approach (TQC,TPM,ISO)

11. Operating Performance Y2010 Result (Unaudited) • Y2010 operating profit was NT$ 26,491 million, up NT$17,781 million from NT$8,710m in Y2009 (+204.1% YoY); operating performances of major products: • Plastics: Y2010 operating margin 5.2%, slightly down YoY from 7.3% in Y2009. • Electronic Materials: • Y2010 operating margin 13.9%, up 7.0% YoY from 6.9% in Y2009 • Benefiting from recovery in the electronics industry and raw materials price rise, prices of all electronic materials rose significantly • Strong demand helped to increase utilization rate and reduce unit fixed cost • Polyester: • Y2010 operating margin 10.9%, up 12.2% YoY from -1.3% in Y2009 • Demand increase from cotton shortage, consumption power increase in China, in addition to product mix improved and portion of high value-added products expanded, for example, sales of polyester film which are applied to LCDs and solar panel increased significantly • Set up a performance improvement team to establish standard production lines by implementing strict problem solving with productions to increase efficiency and performance as well as to reduce cost. • Chemical Products: • Y2010 operating margin 16.0%, up 10.6% YoY from 5.4% in Y2009 • With soaring ethylene price, plenty of maintenance in the industry, and strong demand from downstream polyester buyers, EG price rose significantly and operating margin could reach 30%+ in Y2010. • Profits from DEHP and BPA increased due to product price increase more than raw materials cost raised and better operating rate on the back of improving demand

14. Capacity/Expansion – Plastics Unit: US$1,000

15. Capacity/Expansion - Plastics (China Investment Part I) Unit: US$1,000

16. Capacity/Expansion - Plastics (China Investment Part II) Unit: US$1,000

17. Capacity/Expansion – Polyester Unit: US$1,000

18. Capacity/Expansion – Electronic Materials Unit: NT$1,000

19. Capacity/Expansion – Electronic Materials (China) Unit: US$1,000

20. Capacity/Expansion – Speciality Chemicals (Taiwan) Unit: US$1,000

25. * Nan Ya’s EG capacity of 1,770 thousands tons per year is theoretical capacity. Actual EG capacity can reach 2,080 thousand tons per year。