9/25/2017

Team Cell Office

Project Manager Steven Zhao +86.135.6467.9895 +86.21.8036.0688 ext 6507 szhao@armstrongceilings.com
Project Coordinator Michelle W. Hsieh +886.911.735.668 +886.2.8758.2375 mwhsieh@armstrongceilings.com
SCM Terry Tang +86.139.1674.2203 +86.21.8036.6088 ext 6318 tctang@armstrongceilings.com
SCM Michael Song +86.177.0210.4809 +86.21.8036.0713 msong@armstrongceilings.com
Quality Control TBD

Communications Plan
Bi-weekly Team meetings -> Mon 10:00 AM Shanghai
 2017/10/16 Update

Project Taiwan has local legislation restricted importing aluminum ceiling tile from
mainland China.
### Description
In addition, customers are looking for better delivery time and service from
local.
### Tasks Develop 1-2 local aluminum ceiling vendor in Taiwan
### Region North Asia
### Segment Office or other related
### Product group L1(Lay in Teguar/Vector) / R-H200
### Go-to-market date: Q4 2017

Developing Product Group - L1(Lay in Teguar/Vector) / R-H200

### Raw Material Aluminum A3003H24
### Thickness（Actual） ≥0.7mm
### Coating Only Powder Coating, 75+/-5um
### Color Global White
### Tile Size (imperial) 2x2'
### Plank Size (metric) 300*1200mm

1. Extra-micro (0.7mm/1.5%)
2. Micro Straight (1.5mm/9.6%)
Perforation
### 3. Micro Diagonal (1.5mm/19.1%)
(Diameter/Open ratio)
4. No perforation
5.Perforation without fleece

### RH AWI
### Fleece Local fleece/Soundtex
### Acoustics Test by local fleece/Soundtex
### Fire performance 燃烧性能 Metal panels with fleece need test, metal panels without fleece no need
### Generic test（外观质量,产品厚度,尺寸,公差,膜厚,光泽度偏差,附着力,漆膜硬度,耐冲击性,耐酸,耐碱,耐油）
As test result
### Neutral salt spray test中性盐雾 As test result
### Formaldehyde emission 甲醛释放量 As test result
### Antibacteria As test result
### Anti-mold
### TVOC
Test method Notes For Reference

Wait to confirmed by Michelle

ASTM C423/ISO 354/ISO 11654
ASTM E84 GB 8046-2012
Test as GB Check with Taiwan SGS GB/T 23444
Test as GB Check with Taiwan SGS GB/T 23444
Test as GB Check with Taiwan SGS GB 18580-2001
JIS Z 2801/ASTM E 2149-01 GB/T 21866-2008
No need, confirmed by Michelle GB/T 1741-2007
No need, confirmed by Michelle GB/T 18883-2002
N= New Item
* = High priority

2017/10/16 Update Target

Priority Taiwan AS Metal OEM Development - Project Team Hit List Owner Date Status Comment
Key Direction

* Check feasibility of transshipment trade for Taiwan market Terry 10/14/2017 Done. Terry check it is infeasible
*N Provdie margin rate for future metal business in Taiwan market Michelle 11/1/2017

Process
Provide Taiwan legal file for Update NDA process Michelle 10/14/2017 Done

* Check with Legal Dept. and finish the update of NDA file to Michelle Michael 10/16/2017 Done. Final: follow Hongkong law to do NDA process

N Michelle provide contact information to Michael to NDA Michelle 10/30/2017

N Michael finish NDA file Michael 11/3/2017

Business
Roughly price(TWD) as visible size with material and bended, not
Get estimated price(Lay in/Vector/RH200) as Commpetiton Sheet from vendor Michael 10/14/2017
involving perforation and coating
Provide information of potential vendor Michelle 10/14/2017 Done

Provide Michelle with vendor information collection file Michael 10/18/2017 Done

Provide production equipment & existing products list /Vendor information Michael 10/20/2017 Delay to 11/3

Check finance Dept. with settlement currency if as USD Michael 10/20/2017 USD is ok

Provide cost composition list (Material/Bend/Perforation/Coating/Soundtex Fleece) Michael 10/20/2017 Done

* Compare the cost composition between Taiwan and ABPM Michael 10/25/2017 Delay to 11/3

Products

Provide drawings of 2x2' imperial Lay in Tegular/Vector/RH200 Steven 10/14/2017 Done

Collect existing samples from potential vendors Michelle 10/14/2017 Done .Lay-in board or baffle, Aluminum A1000, 0.5mm thickness
Courier existing samples of potential vendor to Steven Michelle 10/20/2017 Delay to 10/27 courier
Products test method Checking with US as ASTM Steven 10/20/2017 Done
Confirm the test items as Taiwan requirements Steven/Michelle 10/27/2017 Done
* Check 3rd inspection agency if they do the QC process Michelle 10/27/2017 Dalay to 11/3
Check price of Soundtex in Taiwan Michael 10/27/2017 Dalay to 11/3, Target DDP< 2.5 USD/SQM
* Confirm if we need soundtex fleece in standard products because of price Michelle 10/27/2017 Dalay to 11/6
N Armstrong purchase soundtex for Taiwan OEM plant by Armstrong HK Michael 11/3/2017
N Steven email reference standard to Michelle Steven 10/30/2017
 Company Location

### 长仕实业有限公司 Taipei

### 王室金屬建材有限公司
彰化縣
Website

http://www.longrange.com.tw/

https://www.facebook.com/王室金屬建材有限公司-670644273127212/
Layin Company Armstrong Armsrtong CKM Longrange Opus

Manufacturer ABPM Taiwan Local

Product Lay-in

ICTP Price

Edge Layin L1

Material Aluminum A3003H24

Size 2x2'

Thickness 0.7mm

Perforation Extra-Micro

Fleece Local

Coating Powder 75+/-5um

Color Global White

NRC N/A
9/25/2017

Key Milestones Comments

Target
M# Project Milestone Date Who Status
### Kick-off meeting 9/25 Steven/Michelle/Terry/Michael
### NDA process finish 11/3 Michael
### Margin Rate confirmation 11/3 Michelle
RAD Lab Testing & Certificates
9/25/2019

Region Test Class Test Name Lab Name (Location) Owner Need By Product(s) Tested Comment

North Asia
 Risk List
2017/9/25

Risk
# Risks Description Owner Comment Mitigation Strategies Questions
Level
 9/25/2017

China Year 1 Year 2

Volume (M2)

L1 (Vector, lay in) 30,000 50,000

RH200 10,000 15,000

Average AWI selling price ($/m2)

L1 (Vector, lay in) 10-Jan-00 10-Jan-00

RH200 12-Jan-00 13-Jan-00

Average trade margin 25% 25%

AWI sales($)

L1 (Vector, lay in) 330k 575k

RH200 130k 210k

Total 460k 785k

Year 3 Year 4 Year 5

70,000 80,000 80,000

20,000 20,000 20,000

11-Jan-00 11-Jan-00 11-Jan-00

13-Jan-00 13-Jan-00 13-Jan-00

25% 25% 25%

840k 960k 960k

290k 290k 290k

1,130k 1,130k 1,130k