SUNSPRING OVERVIEW

Jun 2016

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Disclaimer

2

• The information contained in this confidential document ("Presentation") has been prepared by Sunspring (the "Company"). It has not been fully verified and

is subject to material updating, revision and further amendment.

• While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents,

employees or advisers gives, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy,

reliability or completeness of the information in this Presentation, or any revision or supplement thereof, or of any other written or oral information made or

to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly

disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers takes any responsibility for, or will

accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness or

injury of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the

use of this Presentation or the information.

• Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any

transaction and the right is reserved by the Company to terminate any discussions or negotiations with any prospective investors. In no circumstances will the

Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this

Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this

Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

• This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents,

employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making

such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily

involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.

• This Presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than statements of

historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company

believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future

performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to

differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, general economic, market or

business conditions and other unforeseen events. Prospective Investors are cautioned that any such statements are not guarantees of future performance and

that actual results or developments may differ materially from those projected in forward-looking statements.

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

SUNSPRING IS YOUR MOST

RELIABLE SOURCE

3

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Executive Summary

Sunspring is a leading supplier of global kitchen & bath plumbing fitting brands, serving a US$4.5 bn total addressable market globally.

Zinc products are our strategic focus and we are the No.1 supplier worldwide for zinc components in the global kitchen & bath plumbing industry.

Over the last 40 years, Sunspring has built a strong customer base of well-known global brands, who capture >60% of North American and European market through these long-term partnerships.

Zinc conversion trend presents a major industrial opportunity; Sunspring is well-positioned to leap.

Sunspring aims to be the best total solution provider in a market with great potential opportunity through disciplined investment in automation and talent.

4

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Agenda

Company Highlights

Core Strengths

Strategies for Sustainable Growth

Shareholder Commitment

Financial Performance

5

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

6

Company Highlights

Core Strengths

Strategies for Sustainable Growth

Shareholder Commitment

Financial Performance

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Taichung, Taiwan Headquarter and Innovation

Technology CenterEmployee: 500+

Zhaoqing & Zhuhai, Guangdong Manufacturing facilityEmployee: 4,600+

Kentucky & Michigan, USA Manufacturing facility

North Carolina, USADistribution facility

Employee: 90+

Sunspring Overview

7

• Sunspring is the manufacturing solution provider for global kitchen & bath fitting brands• Key products: components and modules for faucets, showering, and accessories• Year of establishment: 1974• Ticker: 2062 TW• 2015 Revenue: NT$6.8 bn (US$207 mn)• Market capitalization: NT$6.8 bn (US$211 mn, as of Jun 30, 2016)• Total employee number: 5,200+• 6 locations globally, including 4 manufacturing plants

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Sunspring Timeline

8

1997 Zhaoqing, Guangdong 1st China manufacturing facility

1974 Chang Hwa, TaiwanSunspring founded

1999 Taichung, TaiwanHeadquarter established

2001 Los Angeles, USA1st US distribution facility 2002 North Carolina, USA

2nd US distribution facility

2004 Zhuhai, Guangdong2nd China manufacturing facility 2006 Kentucky, USA

Acquired Gamco

2007Michigan, USA Acquired H&H Tubing

2015 Taichung, Taiwan Innovation & Technology Center established

2007Listed on TWSE

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Sunspring Serves the Fitting Industry

* Source: Fitting & Fixture – Freedonia, World Plumbing to 2018, Feb 2015** Source: Company estimates. Based on Sunspring customers purchasing amount in faucet components/modules

9

Kitchen & Bath Plumbing

Fixture

CabinetFurniture

Brass Zinc Plastic

Fitting & Fixture

Ceramic

Fitting

Global market size estimate

$9bn**

$4.5bn**

Market segments we serveMarket segments we serve

$80bn*

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Kitchen & Bath Plumbing

10

Fitting Fixture Cabinet & Furniture

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

11

Company Highlights

Core Strengths

Strategies for Sustainable Growth

Shareholder Commitment

Financial Performance

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Core Strengths

No. 1 Zinc Solutions

Solid Customer Portfolio & Partnership

Dedicated Management

Team

12

Kitchen & Bath Fitting Industry

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Johnny C.F. YangFounder/ Group President50+ yrs. experience

Scott YangChairman/ CEO20+ yrs. experience

Dedicated Management Team

13

Joyce YangSr. VP of CEO office 15yrs.+

Ken SlusherSr. VP of Operations, North America 35yrs.+

Curtis ShihSr. VP of Manufacturing, China 35yrs.+

Stone TsaiSr. Director of Innovation & Technology 35yrs.+

Jing-Fa ChengSr. Director of Operations, China

Jeff YangSr. Director of Innovation & Technology 30yrs.+

Minson WangSr. Director of Innovation & Technology 25yrs.+

Richard HuSr. Director of Customer Service 35yrs.+

Robert WangSr. Director of Customer Service

Jeans YehSenior VP of IT 30yrs.+

Feng-Yao KoSr. Director of Customer Service 30yrs.+

Jing-Fang HuangSr. Director of Innovation & Technology 40yrs.+

Micro SuSr. Director of Knowledge Management 20yrs.+

Nan-Hui KaoSr. Director of Innovation & Technology 15yrs.+ 40yrs.+

30yrs.+

Yu-Chun ChouSr. Director of Innovation & Technology 20yrs.+

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Solid Customer Portfolio & Partnership

North America 64.0%

Asia 13.2%

Europe 22.3%

Other 0.5%

Global Sales Mix

* Other includes home improvement hardware and other applications

Kitchen & Bath 93%

Other* 7%

Industries Served

14

Our customers account for > 60% of faucet market share in North American and Europe

Note：2016H1

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Business Strategy

15

Finished Goods

ZincModular Components

Brass

Plastic

Deliver on Customer ExpectationsReduce Operational Cost

Speed To Market

FunctionalDecorative

OD

MO

EM

Mod

ular

C

ompo

nent

Com

pone

ntBe the “Solution Provider” in Zinc, Brass, Plastic

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

No. 1 Zinc Solution Provider

16

Global No. 1 zinc die casting manufacturer in kitchen & bath plumbing fitting

61% 64% 68% 70% 72% 74%

34% 32% 29% 27% 25% 24%5% 4% 3% 3% 3% 2%

2011 2012 2013 2014 2015 2016H1

Product Mix: Nearly 70% from Zinc

Zinc Brass Other

Note: Zinc includes zinc components and modules. Brass includes brass components and modules.

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Sunspring Value Proposition

17

Background

• Zinc is 1/3 of the material cost of copper

• Regulation changes favorable to Zinc conversion

• Zinc conversion to extend from US to Europe & Asia

• Housing demand – US remains stable and Europe has bottomed out

Our Effort

• Sunspring is an early mover since 1990s

• Sunspring masters the Zinc production with stable yield & shorter lead time

• Sunspring partners with all global brands for Zinc solutions

• Sunspring’s solid financials will support its leadership on all fronts

Sunspring AnswersSunspring Answers

On-going Zinc Conversion

From Zinc to Total Solution

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Sunspring Offers the Best Solutions

18

0

50

100

Regular Brass Low/No-LeadBrass

SunspringHybrid

Manufacturing costs for faucet components

Regular Brass = 100 20-40%

3-13%Savings

*Note: Hybrid modules: zinc body + no-/low-lead brass or plastic waterway

Increased demand for quality coupled with more stringent

regulations

Push for continued cost reduction, both

in product and processes

Global market requires rapid

response capability to capitalize on

emerging opportunities

Source: Company estimates

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Competitive Zinc Solutions

19

Our new hybrid modules* provide 20-40% cost-saving vs regular brass

*Note: Hybrid modules: zinc body + no-/low-lead brass or plastic waterway

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

We Aim to Be a Total Solution Provider

20

We intend to achieve our goal byExtending our leadership position in Zinc solutions Using Zinc solution as a platform to integrate other services Offering one stop manufacturing solution to customersGaining market share

Market segments we serve

In-house*Others

Sunspring, ~4%

In-house*

Others Sunspring, >10%

Now Future

Source: Company estimates * Note: Customer in-house manufacturing

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

21

Company Highlights

Core Strengths

Strategies for Sustainable Growth

Shareholder Commitment

Financial Performance

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Investment for Sustainable Growth

22

• Resolve capacity bottleneck• Improving China labor management

Optimizing existing manufacturing facility

• Three-stage automation program: Manufacturing efficiency and quality improvement

• New plant in Taichung: Capacity expansion in Central Taiwan Science Park and Taichung Port

• Enhancement to management team for future growth

Solutions with long-term perspectives

Invest for Future Growth with Disciplined Financing

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Automation: Aim for sustainable growth and minimize financial volatility

23

• Maintain a sustainable gross margin ~25%• Aim to manage operating expenses ~10%• Disciplined capex management• Optimize China labor management

Interim goals

• Produce sustainable growth and minimize volatility in financial performance

Long-term goals

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Stage I (2012-2015) Stage II (2015-2019) Stage III (2016-2022)

Focus Automation for existing manufacturing process Integrated Cell Automation Intelligent Manufacturing System

Key Objective Stabilize output &reduce labor dependency

Stabilize yield rate & efficiency, reduce material handling wastes Optimize efficiency & yield

Capacity New-

Innovation & Tech Center-Taichung & Houli Science Park

(2018): 6,600 MT/yrTaichung Port Free Trade Zone

Total Zinc: 18,000 MT/yrBrass: 4,800 MT/yr

Zinc: 24,600 MT/yrBrass: 4,800 MT/yr

Zinc: 24,600 MT/yr + Taichung Port FTZBrass: 4,800 MT/yr 24

Note: Metric ton (MT)

Three-Stage Automation Roadmap2012-2013 2014-2015 2016-2017 2018-2019 2020-2021 2022-2023

China Manufacturing Operation

North America Manufacturing Operation

Taiwan Manufacturing Operation

Manufacturing AutomationIntegrated Cell Automation

Intelligent Manufacturing System

Integrated Cell Automation

Integrated Cell AutomationIntelligent Manufacturing System

Innovation & Technology Center

Integrated Cell AutomationIntelligent Manufacturing System

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Innovation & Technology Center and Taichung Plant

Location: Central Taiwan Science Park and Taichung Port Free Trade Zone, TaiwanGoal: Implementing integrated cell automation and intelligent manufacturing systemCapex: >NT$3.5 bn (2015-2019), funded by operating cash flow and bank debtExpected capacity: 6,600 metric ton/yearExpected timeline for Innovation & Technology Center-Taichung Science Park

Pilot run and ramp up production: 2016Full operation: 2017

Expected timeline for Innovation & Technology Center-Houli Science Park

Pilot run and ramp up production: 2018Full operation: 2019 25

Taichung Port Free Trade Zone Plant: Expansion subject to demand and ITC implementation

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

26

Company Highlights

Core Strengths

Strategies for Sustainable Growth

Shareholder Commitment

Financial Performance

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Vision & Shareholder Commitment

27

Increase capacity at least 40% in 5 years

Consistent dividend policy

Our vision

• To become the best solution provider and partner of choice in the global kitchen and bath market

Shareholder Commitment

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Consistent Dividend Policy

28

20112012

IFRS

2013

IFRS

2014

IFRS

2015

IFRS

Net Income (NT$ mn) 411 328 905 622 624

Cash Dividend (NT$ mn) 359 326 734 437 163

Dividend per Share

(NT$)2.20 2.00 4.50 2.68 1.00

Payout Ratio (%) 87% 99% 81% 70% 26%

Cash Yield (%)* 7.1% 3.6% 7.1% 6.0% -

Notes: Cash yield is based on Sunspring’s closing share price on the day before ex-dividend day (July 12, 2012 for 2011 yield, May 21, 2013 for 2012 yield, May 20, 2014 for 2013 yield , Sep 21, 2015 for 2014 yield).

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

29

Company Highlights

Core Strengths

From Zinc to Total Solution

Strategies for Sustainable Growth

Shareholder Commitment

Financial Performance

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Key Financial Indicators

30

5,350 5,353

5,9286,170

6,777

3,099

19.2%20.1%

26.3%

22.4% 23.0%24.7%

2011 2012 2013 2014 2015 2016H1

Gross Margin %

Revenue NT$ million

407

540

961

682732

384

7.6%

10.1%

16.2%

11.1% 10.8% 12.4%

2011 2012 2013 2014 2015 2016H1

Operating Margin %

Operating Profit NT$ million

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Key Financial Indicators

31

411328

905

622 624

330

2.53 2.01

5.55

3.82 3.83

2.03

2011 2012 2013 2014 2015 2016H1

EPS (NT$)

Net Income NT$ million

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

5-Year Income Statement

NT$ Million 20112012

IFRS

2013

IFRS

2014

IFRS

2015

IFRS

2016H1

IFRSYoY (%)

2011 2012 2013 2014 2015

Sales Revenue 5,350 5,353 5,928 6,170 6,777 3,099 6.2 0.1 10.7 4.1 9.8

Gross Profit 1,025 1,073 1,559 1,380 1,558 764 (20.6) 4.8 45.2 (11.5) 12.8

Operating Profit 407 540 961 682 732 384 (48.4) 32.6 78.0 (29.0) 7.3

Income before Tax 505 553 1,110 788 809 453 (34.3) 9.6 100.5 (29.0) 2.7

Net Income 411 328 905 622 624 330 (36.7) (20.3) 176.1 (31.3) 0.3

EPS (NT$) 2.53 2.00 5.55 3.82 3.83 2.03 (36.8) (20.6) 176.1 (31.2) 0.3

Gross Margin (%) 19.2 20.1 26.3 22.4 23.0 24.7

Operating Margin (%) 7.6 10.1 16.2 11.1 10.8 12.4

Net Margin (%) 7.7 6.1 15.3 10.1 9.2 10.7

ROE (%) 9.6 7.8 20.1 12.6 12.6 6.3

ROA (%) 7.6 5.7 13.4 7.9 7.3 3.2

32

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

5-Year Balance Sheet

NT$ Million 20112012

IFRS

2013

IFRS

2014

IFRS

2015

IFRS

2016H1

IFRSYoY (%)

2011 2012 2013 2014 2015

TOTAL ASSETS 6,206 5,911 7,844 8,341 9,733 10,567 29.4 (4.8) 32.7 6.4 16.7

Cash 1,553 1,499 3,096 2,595 386 449 37.0 (3.5) 106.6 (16.1) (85.1)

NR & AR 1,010 1,140 1,220 1,380 1,512 1,162 40.5 12.9 7.0 13.1 9.6

Inventory 728 691 853 1,011 1,275 1,267 10.6 (5.1) 23.5 18.5 26.1

Fixed Asset 2,546 2,206 2,364 2,778 4,808 4,463 30.7 (13.4) 7.2 17.5 73.1

TOTAL LIABILITIES 1,875 1,770 2,956 3,357 4,595 5,353 253.2 (5.6) 67.1 12.0 36.9

Bank Loans 1,124 1,017 2,075 2,276 3,455 4,275 - (9.5) 104.0 9.7 51.8

NP & AP 348 260 298 363 477 307 45.5 (25.4) 14.7 21.8 31.4

TOTAL EQUITY 4,331 4,141 4,888 4,984 5,138 5,214 1.5 (4.4) 18.0 3.0 3.1

A/R turnover days 59 73 73 77 78 79

Inventory turnover days 58 61 64 71 80 99

A/P turnover days 25 26 23 25 29 31

33

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

34

Quarterly Financials

1,283

1,563 1,624 1,458 1,398

1,541 1,594 1,637 1,541

1,693 1,700 1,842

1,644 1,455

194 267 291 209

158 167 173

184 158 161

166 246 221 163 203 234 254

214 89

118 199

216

125 110 174 214 215

115

25.6% 27.7% 26.5% 25.3% 21.6% 22.0% 22.3% 23.4% 22.6% 21.4% 22.0% 25.7% 25.4% 23.9%

15.1% 17.1% 17.9% 14.4% 11.3% 10.9% 10.9% 11.2% 10.3% 9.5% 9.7% 13.4% 13.4% 11.2%

0

500

1,000

1,500

2,000

2,500

3,000

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

NTD Million

Net Sales Operating Margin Net Income

Gross Margin Rate Operating Margin Rate

S u n s p r i n g Is Y o u r M o s t R e l i a b l e S o u r c e

Passion Dedication ExcellenceIntegrityReliability

PRIDE

Thank You for Your Attention !