FY2017 BUSINESS PERFORMANCE

2

2017 TCI Achievements

Q 1

★ S9 Powder Line Expansion

★ Indonisia Office Established

Q 3★Received 4th Taiwan

Mittlestand Award

★ Selected in Forbes Asia’s 200 Best Under

A Billion

Q 4★ S11 Face Mask Factory Operation

Started

★ USA Office Established

Q 2

★Awarded Outstanding Company of the Year by Taiwan

Bio-Industry Organization

3

2017 TCI Footprints Across the Globe

• Tokyo World Genius Convention• Seoul International Invention Fair

• Moscow International Salon of Inventions and Innovative Technologies

• International Exhibition of Inventions of Geneva

• International Lepine Competition Paris

• The Invention & New Product Exposition Pittsburg, PA

• Competed at 6 International Invention Events 9 Gold, 9 Silver, 8 Special Awards Received

4

• Attended 15 Trade Shows Worldwide

• Served 44 Countries with TCI Products

↑10%

↑22%

↑3%

↑30%

↑28%

↑33%↑32%

QoQ%

YoY%

Sales Growth of Four Consecutive Years

5

FY2017 Consolidated Financial Reportin Thousand of TWD

Year 2017 2017vs2016 2016 2016vs2015 2015

Operating Revenue 4,072,168 100% ↑31% 3,109,676 100% ↑51% 2,064,531 100%

Gross Margin 1,654,399 41% 1,292,513 42% 731,899 35%

Operating Expenses - Selling - G&A - R&D

774,949262,843329,830182,276

19%6%8%5%

↓2% by Percentage

669,738220,217289,266160,255

21%7%9%5%

↓1% by Percentage

463,490158,335201,883103,272

22%7%

10%5%

Operating Profit 879,450 22% ↑41% 622,775 20% ↑132% 268,409 13%

Non-Operating Income 11,041 - 12,267 - 20,761 1%

Income Tax 169,667 4% 121,495 4% 47,937 2%

Net Profit 720,824 18% ↑40% 513,547 16% ↑113% 241,233 12%

EPS 8.23 6.90 3.66

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Sales Breakdown by Region

7

Sales Breakdown by Product

8

Other Financial Ratios

Year 2014 % 2015 % 2016 % 2017 %

EPS 3.08 100% 4.02 100% 6.90 100% 8.23 100%

Dividend 2 65% 2.63 65% 3.5 51% 4.20 51%

- Cash - Stock

11

32.5%32.5%

1.461.17

36%29%

21.5

29%22%

2.71.5

33%18%

ROE 9% 11% 18% 21%

ROA 6% 8% 13% 15%

Net Gearing -9% -17% -9% 1%

EBITDA/Revenue 17% 17% 24% 25%

9

• Time of Issue: May 2018

• Offering Value: 1.2 Billion TWD

• Face Value: 100,000 TWD per bond, with 0-0.5% interest rate

• Conversion Rate: 115% (Tentative)

• Dilution Rate: Approx. 3.2% after stock dividend payout in 2018

Convertible Bond Offering

10

11

TCI BIO-INTEGRATION STRATEGY

11

TCI Bio-Resource Mining

PRECISION MEDICINE – NEW ERA OF HEALTH12

International Procurement/Sales

LocalIngredients

BreakthroughTechnologies

InnovativeProducts

NewApplications

GLOBALSOURCING

Material R&D

GeneExpression

FormulationDesign

EfficacyValidation

MassProduction

QualityControl

Integrated Bioscience Design

INTELLECTUAL PROPERTY

Join & Delight

IBDIngredients

EffectiveFormulations

Award-WinningProducts

PatentProtections

BIO-RESOURCE MINING PLATFORM

PlantsEnzymeProbiotics

DNA &Personalized Analysis

Database Analysis &Synergene

Hospital &Academic Resources

Trends & Marketing Efforts

Global Regulatory Compliance

- Plant Callus Tissue Engineering

- Novel Ingredient Development

- Extraction Method Engineering

- DNA Analysis- Functional Genome

Analysis- Function Exploration

- Exploration of Physiological Effects of Volatile Compounds

- Microbes Collection Bank- Probiotics Development

- Analysis and Identification of Active

Compounds

- Product Efficacy Validation- Product+

- Safety Assessment

- Quality Analysis- Active Compound Analysis

- Formulation Design- Scale-up Planning

- Production Engineering

- Optical System Development

- Automated QC Development

- Cloud Monitoring System

13

14

73 IBD Materials Developed as of 2017

+10 more under Development in 2018

BIO-DIVERSIFIEDPORTFOLIO

742

9 15

IBD Material Innovation and Development

14

TCI Probiotics Database

15

Edible Probiotics 671 Strains

From Fresh Plants

From Fermented

Food

From Human Body

From Natural

Environment

FromAntiques

Non-Edible Probiotics

755 Strains

TCI Probiotics Database1426 Strains

• 90 patent applications and 65 patent acquirements are planned in 2018.

Patents Protect IBD’s Value

16

Internal Pilot Study

Scientific Collaboration [Academies / Hospitals]

Customized in vivo Study [Finished Products]

National Taiwan University

Taipei Medical University Hospital

China Medical University

Chung Shan Medical University

National Chung Hsing University

Beijing Technology and Business University

Shanghai Jiao Tong University

Shanghai Ocean University

Bogor Agricultural University

University of California, San Diego

NTU Hospital

TMU Hospital

CSMU Hospital

CMU Hospital

EFFICACY . VALUE . EXPERIENCEE.V.E LAB

17

Currently in Collaboration with

AcademiesHospitals

FY2018 BUSINESS OUTLOOK

18

INNOVATIVE PRODUCTS

19

DOUBLE NUTRI Liquid Sachet

Double Nutrition，Win Win Situation

20

• Emulsion Innovation

Combine nutrients in different phases together to create double nutritional effect.

• High Absorption

Micro-encapsulation makes it easier for the body to absorb nutrition effectively.

• Sufficient Dosage

Effective amount is put into the new application for just one time consumption.

• Delicious Taste

Flavored with fruits to avoid bad smell, taste and oxidation.

• Absolute Safety

No worries about chocking risk for children and the elderly.

21

22

GLOBAL EXPANSION

22

23

• Market grows faster than the global average.• Rising WeChat commerce helps business growth.

• Office set up in Salt Lake City, UT.• Actively explore direct sellers and distributors to collaborate with.

• Sales efforts expand to Mexico, Peru, Chile and Argentina.

• Participate in 12 Trade Shows Worldwide in 2018.

• Attract market and new direct selling clients with innovative products.

Europe

Southeast Asia

China

South America

America

Global Business Expansion • Penetrated into major pharmacies in Europe.• Germany became the 44th country exported.• Continue to promote eco- friendly “Green” face masks.

23

24

CAPITAL EXPENDITURE

24

2018 Production Line Expansion Plans

Area Factory Production Line Completion 2018 Monthly Capacity Added

2017 Monthly Capacity Increase Rate

Pingtung, China

S5Liquid Sachet Q1 12M - -

30ml Drink Q2 5M - -

S9

Capsule Q2 10M 10M 100%

Tablet Q2 68M 12M 566%

Powder Sachet Q3 12M 24M 50%

S11 Face Mask Q3 3M 5M 60%

Shanghai, China

S7 Face Mask Q1 3.7M 1.3M 285%

S8

Liquid Sachet Q2 3M - -

Capsule Q3 10M - -

Tablet Q3 30M - -

Powder Sachet Q4 12M - -25

Face Mask

S75M

Unit: Million per Month (Piece, Bottle, Bag)

50ml DrinkLiquid SachetPowder Sachet

S810M3M12M

TabletCapsule

30M10M

S5 50ml Drink30ml DrinkLiquid Sachet

5M5M12M

SHANGHAI, CN

PINGTONG, TW

S9 Powder SachetTabletCapsule

24M12M10M

S11Face Mask 8M

2018 Capacity After Expansion

26

Automatic Warehouse Distribution SolutionsManufacturing Management & AutomationIntroducing Industry 4.0 “SAP-MES"

W1 Automated WarehouseCommencement: 2018Q2Completion: 2019Q4(Both Estimated)

27

SUSTAINABILITY

28

TCI Joins

l About ？ Ø RE100, founded by The Climate Group in partnership with CDP, is a collaborative, global initiative uniting more than 100 influential businesses committed to 100% renewable electricity, working to massively increase demand for - and delivery of - renewable energy.Ø Members include Apple, BMW, Coca-Cola, Facebook, Google, H&M, IKEA, NIKE, Starbucks and other world’s most influential companies.

l TCI Joinsü The only member from Taiwan.ü The first small-mid cap member.ü TCI is committed to sourcing 100% renewable electricity by 2030, with an interim goal of 15-20% by 2020.

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