Explain media reporting

Subject: Explain media reporting

Contents:

1.Date of occurrence of the event:2016/04/07

2.Company name: Hon Hai Precision Ind. Co. Ltd

3.Name of the reporting media: Apple Daily/BuzzOrange

4.Content of the report:

(1) The Panama Papers...Hon Hai's untaxed overseas profit has reached NT $741.2 billion.

(2) The NT $741.2 billion untaxed amount is equivalent to the annual social welfare and education expenditure of Taiwan Government.

5.Countermeasures:

(1) Hon Hai has always followed the laws and regulations of different countries and complied with its tax obligations. The tax payment in 2015 has exceeded NT $48 billion dollars.

(2) Relying on foreign entities to handle deals and investment has become an essential practice under today's international trade. Hon Hai has recognized and disclosed all of the related information in the annual reports over the years in accordance with the relevant accounting standards.

(3) Hon Hai is not involved in or mentioned by the Panama Papers. In response to certain suggestive allegations made by some persons or media that Hon Hai has engaged in tax evasion by using foreign entities, the company has sent out clarification notice and reserve the right to take any appropriate legal actions.