Gloria Group Profile Further Development Group Regional Marketing, Distribution & Service Group Global Sales & MarketingGroup Melting Conversion Heat Treatment …

Teamwork,Innovation,Challenge GLORIAMATERIALTECHNOLOGYCORP.1

GloriaGroupProfile&FurtherDevelopment

03/2014


GloriaGroupProfile

President Dr.RobertChen

History 1993/03/19ChangedtoGloriaHeavyIndustrialCorp. 1999/07/01RenamedasGloriaMaterialTechnologyCorp.(GMTC)

Address 35Hsin ChungRd.,Hsinying Dist.,Tainan,Taiwan(Hsinying Plant) 10Gong2ndRd.,Liuying Dist.Tainan,Taiwan(Liuying Plant)

Website http://www.gmtc.com.tw/

Revenue USD315Millions(2013)

Capital USD152Million

Employees abt.1,138(Jan.,2014)


QualifiedbyGlobalSupplyChain

HighPerformanceAlloy

Precision Forging &Machining

TheuniqueproducerofspecialtyalloysinTaiwanTheuniqueproducerofspecialtyalloysinTaiwanTheuniqueproducerofspecialtyalloysinTaiwan

Specialization

AboutUs

CustomizationGlobalization

Customerapproval

45Countries80Distribution SuperAlloy,Tialloy,ESR/VAR,HighSpeedSteel,StainlessSteel,

HighAlloyToolSteel,QTSteel,PlasticMoldSteel

Teamwork,Innovation,Challenge GLORIAMATERIALTECHNOLOGYCORP.

ManufacturingGroup RegionalMarketing,Distribution&ServiceGroupGlobalSales&

Marketing Group

Melting

Conversion

HeatTreatment

Finishing

Conversion

HeatTreatment

Finishing

Turning

5axisMilling

ClosedDieForging

PrecisionGrinding

CMMMeasurement

Finishing

3axisMilling

LengthCutting

BlockSawing

SurfaceMilling

SellingChannelsinAmerica

Fe+ AlloyManufacturing

NonFe+AlloyManufacturing

SecondaryProcessing

SellingChannelsinSoutheastAsia

FinishProcessing

SellingChannelsinChina

Providecompetitive process&servicesviaCustomization,Specialization,Globalization

GroupStructure&FunctionalPosition


Tianjin

Jiaxing

Vietnam

Guangdong

LosAngeles

GlobalChannels

Tainan

Taipei

Liuying

Taichung

Taiwan

ServiceHubCenterFactory

SalesChannels

Xian

HeadquarterinTaiwan,Sellingallovertheworld


GlobalCarbonSteel:Volume:1,188Mt(91%),Value:NT$38.6T (83%)

GlobalAlloySteel:Volume:107Mt(9%),Value:NT$6.5T (17%)

6

TialloyPrice:CarbonSteel*60

NibasedalloyPrice:CarbonSteel*40

BearingSteelPrice:CarbonSteel*6

StainlessSteelPrice:CarbonSteel*5

OtherAlloyPrice:CarbonSteel*2

CarbonSteelPrice:NT$32.5/Kg

AlloyToolSteelPrice:CarbonSteel*8

FocusonHighPerformance&ValueAlloys

ProductPosition


1995 2000 2005 2010

ValueAddingProfile

ToolSteelHSS

LowAlloySteel

AusteniticStainlessSteel

FunctionalStainlessSteel

TiAlloy

R&DRoadmap

72013

VARSuperCleanGrades

HighPerformanceAlloy(SuperAlloy)

ESRHighCleanlinessQuality

Teamwork, Innovation, Challenge GLORIAMATERIALTECHNOLOGYCORP.

Aerospace12Customers57Grades

Energy11Customers35 Grades

Oil/Gas9 Customers12 Grades

Others8

InternationalCertificates


FY2012NT$10,230B

MixofProductsbySales

MainProduct:FunctionalStainlessSteel9

FY2013NT$9,245B

FunctionalSS AlloyToolSteel LowAlloySteel CommercialSS Others


FY2013NT$9,245B

FY2012NT$10,230B

25%

23%33%

17%

2%

MarketSharebySales

Domestic:27%/Overseas:73%

27%

28%

31%

13%

1%

10

Taiwan Asia America Europe Others


RevenueGrowth

0

2,000

4,000

6,000

8,000

10,000

12,000

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

FinancialCrisis

11RevenueGrowthYearbyYear

Revenue(NT$B)


-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2007 2008 2009 2010 2011 2012 2013

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Net Sales(Unconsolidated) Net Sales(Consolidated) Gross Profit(Unconsolidated) Gross Profi(Consolidated)

NetSales(NT$million)

12

GrossProfit

Trendofgrowthofannualoperatingrevenue&grossprofit

FinancialCrisis


Glorias500GradesSteels

Mold&Machinery Energy Aerospace Oil&Gas WaterMedical

AlloyToolSteel

PlasticMoldSteel

HighcleanlinessSteel

FunctionalSS SuperAlloy TiAlloy

FocusonHightechIndustries

Aircraft

NT$5.4T/Year

Turbine

NT$2.0T/Year

OilWellDrillingNT$11.3T/Year

MachineCenter

NT$2.7T/Year


ApplicationinAerospaceIndustry

CompressionBlade

(TiAlloy)

EngineEngine

FlashWeldingRing(174PHVAR,718)

LandingGear(HSLA300M,4340M)

Actuator(VARSS:174PH,300M) GearboxParts

(VAR9310,M50)

LandingGearLandingGear

14

Actuator

Focuson:KeyModulesofAircraft


TurbineBlade(GTD450,403Cb)

CompressorDisk(LargeForgedAlloySteel)

ApplicationinEnergyIndustry

15

Focuson:IndustrialTurbineGenerator

CombustorCover(Stainlesssteel)


WellheadEquipmentNi718,925,625,A286

TubingHangerNi718,925 Subsurface

SafetyValveNi 718,925 TiAlloy

Wireline &PressureVesselsNi 35N Ti6246,662,64

MudMotorNi718,925

FishToolsNi718,925

Instrument&ChemicalinjectionpipelineNickel ATI625,ATI825

ShaftforElectronicSubmersiblePumpNi718,925,K500,625

Production&CompletionTubularNi718,925 Ti 6246,662,64

MeasurementWhileDrillingHousingNi 718,925 Ti6246,662,64 Stabilization

Ni718,925RotarySteerableDrillingNi 718,925

Pump&MotorNi 718

ApplicationinOil&GasIndustryFocuson:OilfieldDrillingEquipment

MainMaterial:Ni718, 625, A286, 925 &Ti6246,662

Source:ATIWeb


ArtificialHipJoint

ArtificialKneeJoint

ArtificialElbow

SpinalSystem ArtificialShoulderJoint

ArtificialToothRoot

BoneScrew/Plate

XRayOpticalLensModule

MainMaterial: TiAlloy SS CoCrMoAlloy

Focuson:OrthopedicImplants&MedicalDevices

ApplicationinMedicalIndustry

17


Y2008:100%

Energy,Aerospace,Oil&Gas marketgrowafter2009

GlobalMainIndustryTrend

Energy

Oil&Gas

Machinery

Aerospace


Boeingforecastsitwilladd35,280newaircraftsworldwidein20years.

Airbusforecastsitwillreach36,556aircraftsworldwidein2030(29,226newaircrafts)

Source:Boeing/Airbus

GloriasproductsfocusonSingleAisle&RegionalJets19

GlobalAerospaceIndustryDevelopment


GlobalAerospaceIndustryDevelopment


GlobalEnergyIndustryDevelopment

Energydemandwillgrowcontinuously&80%focusonTurbines

Source:EIA

21


GlobalOil&GasIndustryDevelopment

22ShaleGas&TightGasmarketwillgrowrapidly

:


IndustrySupplyChainIntegrationTASExpansion

Fe+Alloy

NonFe+Alloy

SecondaryProcessing

Aerospace

Energy

Oil&Gas

Water

Medical

Mold&Machinery

RegionalMarketing,Distribution&Service

GlobalSales&Marketing

Investment

M&A

TASSupplierAlliance50tEAF

VIM,VAR,RollingMill

CloseDieForging,PrecisionMachining...

GloriaGroupRoadmap

GlobalSupplyChain

+

Integration

ExternalResourceIntegration

FocusIndustries

GroupIntegration

ArrangementGlobal

Arrangement

Specialization

InternalResource

Specialization

ManufacturingGroup23

GlobalSystemIntegrator

+


AcquiredISO14001AcquiredOHSAS18001AcquiredISO50001AEOCertification

Wesupportof AssociationofCordInjury

Employeesblooddonation,

>17,500cc/season

WasteHeatPowerGeneration

Wasteheatreusing

Plasticrecycle

SolarPowerGeneration

Teatreeplanting

Scrapmetalrecycle

Mission

Greenification

GreenEnergy

EnvironmentalProtection

Healthy

24


Past Present Future

EnergySaving&CarbonReduction

TheEstablishmentofLowCarbonTainanInstallHeatRecoveryonHeatTreatmentFurnaceEnergysaving10~18%

Airpollutionislowerthanaverage

TeaTreePlantingCarbonreductionGreenificationEconomicvaluecreation

WasteheatreusingPowergenerationEssentialoilextractionPlasticrecycle

EstablishGreenFactory&ExerciseCorporateSocialResponsibility

PioneerofSolarPowerGeneration1,248.6KW


ToexpendsaleschannelsandtoprovidevalueaddedservicetoourcustomersGlobalSupplyChainAlliance.

LongternmoltenmetalsupplyagreementHighPerformanceAlloysEquipmentRenewal

Mold&MachineryEnergyAerospaceOil&GasMedicalWater

GMTCsfocus

Tokeeponreengineering,O2S,ecollaboration,LeanSixSigma, TQM,andgreenenergyetc.

27Teamwork,Innovation,Challenge GLORIAMATERIALTECHNOLOGYCORP.

Thanksforyourattention!


Main Manufacturing Process


Special Tools Characteristics

High Speed Steelnon- ferrous alloy abt.30%, High hardness and strength, application to cutting tools, forging industry, Drill and Mold parts.

Cold Work Tool Steel non- ferrous alloy 5~ 20%, High hardness and toughness, application to tool industry, Rolling cutter, Drawing Die, Screw Wheel.etc.

Hot Work Tool Steel non- ferrous alloy 5 ~ 20%, good toughness and high strength at elevated temperature, application to Forming Die, Die & container for extrusion, screw industry.

Plastic Mold Steel non- ferrous alloy 3~ 15%, High toughness, elevated temperature and excellent corrosion resistance, application to Injection Molds, optical Molds, Compression Molds, Transfer Molds.

6xx Stainless Steel non- ferrous alloy abt. 20%High hardness, excellent corrosion resistance and high toughness at low temperature,application to tools of Aircraft fittings, Pump shafts, fastener, gears, turbine bladeetc.

4xx Stainless Steel non- ferrous alloy 15%, High strength and better toughnessexcellent resistance oxygenapplication to parts of Valves, Fitting, Gears, Pump and compressor parts, Cutlery, turbine blade and Oil exploration.

3xx Stainless non- ferrous alloy abt.30%, Excellent corrosion resistance, low strength, mass produced parts such as Screws, Shafts, Bolts, Fitting, Valve, .etc.

Carbon & Low Alloy Steel non- ferrous alloy

Documents

Gloria Group Profile Further Development Group Regional Marketing, Distribution & Service Group Global Sales & MarketingGroup Melting Conversion Heat Treatment …