CPDC — Investor Presentation 2020

Aug 27, 2020

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Investor Conference

． ． ． ． 2020 Respect Innovation Care Excellence Green Business

Disclaimer

• This presentation is for informational purposes only, contains preliminary financial and other information about China Petrochemical Development Corporation and is subject to updating, revision, amendment and completion. This presentation does not and is not intended to constitute or contain any offer of securities for sale or a solicitation of an offer to purchase any securities of China Petrochemical Development Corporation or any other company and neither this presentation nor anything contained herein shall form the basis of any contract or commitment.

• Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements or trend information that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the forward-looking statements in this presentation. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, the words “may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue”, “potential, future, or further”, and similar expressions are intended to identify forward-looking statements. China Petrochemical Development Corporation assumes no obligation to update or revise any such statements or any other information contained herein to reflect events or circumstances that may arise after the date of this presentation.

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Contents

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Company Financial Product Profile Performance Focus

Company Profile

 CPDC was established in 1969 as a state-owned enterprise under the supervision of the Ministry of Economic Affairs.  In 1991, CPDC was listed on the Taiwan Stock Exchange.  In 1994 the company was privatized.

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 The sole manufacturer of CPL in Taiwan

 CPDC is one of only two manufacturer of AN in Taiwan

 Among the top 5 suppliers of nylon-6 raw materials in the world  Among the top 11 AN manufacturers in the world

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 Among the top 3 OPP manufacturers in the world

Business Model

• Establishing integrated production base

• Develop downstream high value products and materials

 Activating land assets, accumulate development experience, and delivering performance

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Financial Performance

． ． ． ． Respect Innovation Care Excellence Green Business Effective integration of the Petrochemical Industry Expand new business in Land Development

Most Recent 6 Quarters Performance

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Unit ： NT$ 100 Million Operating Income Net Income Gross Revenue
20.00 100.00
90.00
85.92
82.97
15.00 81.38 80.48
80.00
70.00
10.00
60.00
6.05 53.01
6.42
51.4
4.62
5.00 50.00
4.04
3.11 3.09 40.84
1.78
40.00
0.26
0.55 0.02
0.00
30.00
-1.43
-1.88
20.00
(5.00)
10.00
-6.47
-6.96
(10.00) 0.00
2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2
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Most Recent 6 Quarters EPS

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0.5
EPS(元)
0.4
0.3
0.23
0.21
0.2
0.14
0.12
0.11
0.1 0.06
0
0
2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2
-0.1
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Unit： NT$ 100 Million	2017	2018	2019		2020H1		2019H1 vs.2020H1	YoY%
Operating revenue	333.36	385.03	296.24		93.85		(70.5)	(43)%
Gross Profit	53.72	51.76	16.28		(0.41)		(12.66)	(103)%
Profit from operations	35.84	30.75	(4.09)		(8.35)		(10.97)	(419)%
Non-operating income and expense	27.14	16.02	22.72		7.15		(0.25)	(3)%
Income Before income tax	62.98	46.77	18.63		(1.2)		(11.22)	(112)%
Net Income	60.87	42.81	17.34		4.64		(4.87)	(51)%
EPS	2.53	1.58	0.61		0.14		(0.2)	(56)%

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Most Recent 3 Years Balance Sheet

Unit：NT$ 100 Million	2017	2018	2019	2020Q1	2020Q2
Current Assets	188.39	216.23	239.87	276.21	254.65
Non-current assets	627.90	680.82	724.82	725.31	739.37
Total Assets	816.29	897.05	964.69	1,001.52	994.02
Current Liab	42.42	74.88	87.42	105.05	101.49
Non-current Liab	148.39	150.26	205.33	191.49	191.40
Total Liabilities	190.81	225.14	292.75	296.54	292.89
Total Equity	625.48	671.91	671.94	704.98	701.13

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	2017	2018	2019	2020Q1	2020Q2
Debt Ratio	23%	25%	30%	30%	29%
Current Ratio	444%	289%	274%	263%	251%
Net profit Margin	18%	11%	6%	0%	11%
ROA(%)Note	15%	9%	3%	0.08%	0.8%
ROE(%)Note	17%	10%	4%	0.11%	1.17%

Note: Excluding the amount of investment real estate accounts

Excluding the amount of net increase or decrease in the fair value of investment real estate from the special surplus reserve

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Dual Focus Development Strategy

CPDC incorporates Petrochemical Industry and Land development as the main strategy with the goals of sustainable development, creating value for stockholders and a focus on CSR .

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CPL

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Petrochemical Bulk raw Integrated production, Business materials Trade, transport, storage

AN

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Petrochemical Operations

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CPDC
Taipei office
Toufen
CPL Production
200k tons/yr
Nylon Chips Production
36k tons/yr
Jiangsu Rudong
Weiming Petrochem
Jiangsu Rudong
CPL Production
300k tons/yr Weihua Trading
Nylon Chips Production
100k tons/yr
Hsiaokang
Shanghai
CPL Production
WeiQiang Trading
200k tons/yr
Dashe ( HQ)
AN Production
224k tons/yr
Intercontinental
Storage Tanks
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CPL Nylon6

Most Recent 3 Years Production & Sales

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Unit ： 10k Tons Unit ： 10k Tons
CPL
40 38.0
37.4
30.0 AN 36.5
35.1 Nylon6
31.1
29.7
30
20.7 21.0 20.8 21.6 21.1 21.4
20.0
20
10.7 10.9
10.0 10.4
10 8.0
0.0 0
2017 2018 2019 2020H1 2017 2018 2019 2020H1
CPL Production CPL Sales PA6 Sales
AN Production AN Sales
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Petrochemical Business

Fine Chemicals

From Innovative R&D to Mainstream Market Application

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Fine Chemicals Operations

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CPDC
Taipei office
Toufen
Fine Chemicals
Dajia
Changzhou DOPO／SPB
Weicai New Material
Qiaotou
Engineering
plastics
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PROPERTIES ACTIVATION

DEVELOPMENT

LAND DEVELOPMENT BUSINESS

SALES & LEASING

RESOURCING

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Land Development Operations

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Taipei Core Pacific Plaza
Commercial
Building
Myanmar
Vietnam
5A Section
6 Section
Xiande sec
Kaohsiung
Short, medium and long- term
development and lease
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Product Focus

． ． ． ． Respect Innovation Care Excellence Green Business Effective integration of the Petrochemical Industry Expand new business in Land Development

Product Development

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己 內 醯 胺 CPL AN
Downstream 下 游 Downstream
PMMA
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Application field

Automotive Industry

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[Automobile]

• Outer-base light lamp

• • Cylinder head cover

• Seat accessories

• Rearview mirror mounting base

• • Door handle

• Sunroof frame

• Windshield wiper

• Air vent blades

• [Motorcycle]

• Brake bracket

• Rear armrest

• Motor housing

• Exhaust pipe heat shield

• • Dashboard

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Application field Optical Lenses Industry

• Digital camera

• • Smartphone

• • Projector

• • Drone

• Single-lens reflex camera

• • Surveillance system

• • Dash cam

• • Tablet

• Projector device

Display Industry

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• Television

• Digital advertising

• Laptop

• Desktop computer

• Food ordering system

• • Tablet

• Automobile display

• Smart phone

• Smart watch

• AR/VR & Wearable Devices

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Antimicrobial Industry

• Pesticide for citrus

• Mildewproof gap filling

• • Metal cutting fluid

• Antibacterial household detergent

• Fungicide for environment

• • Cosmetic preservatives

Consumer Electronics Industry

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• PCB flame retardant

• • PC frame and dock

• Laptop body

• Projector shell

• Wifi router

• Electric motorcycle battery box

• Charger shell

• Optical film

• Adhesive for electrical parts

Application field

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Paints & Coatings Industry

• Blades for wind turbine

• Wood apparatus

• • Coil materials

• • Ship

• • Bridge

• • Electrical parts

Household Industry

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• Food packaging

• Bottle

• Container

• Dental materials

• Medical Packaging

• Transparent utensils

• Sealant

Real Estate Development Strategy

From Taiwan to

overseas

• Integration of real estate development experience

• Multi-level planning

• • Creating value and achieving investment goals.

DEVELOPMENT

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PROPERTIES
ACTIVATION
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Developable properties

• Re-plan and develop efficiently to drive the development of the surrounding areas.

• Self-managed or Agency-appointed SALES & • Sales and Leasing

• • Front-line customer LEASING service

• • Proximity to market demand.

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RESOURCING
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Combining Group and Associated

Enterprise resources to create a new vision for cities and a better living environment.

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－ Development Core Pacific Plaza in Taipei

• This project will be a top grade office complex. The ground floor and basement B1 will contain commercial office and building mechanical space, and will maintain the original urban commercial atmosphere.

• • The architectural plan calls for four office buildings, linked by a central hall, with an SS design. The office space is top grade A, with basement levels below B2 for parking use.

• • Planning is ongoing.

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－ Development Xiande sec. Residence in Kaohsiung

Site Area Ping)

Coverage ratio : 60%

Capacity Rate : 630%

Basic Capacity

Ping

Bonus Ping Capacity (Basic Capacity x 15%)

Predicted 5,869 Ping Sale Area

• This project will be a high-quality, green, exquisite residential building; 27 floors high with six floors underground.

• The architectural plan calls for a purely residential building, designed based on “Kaohsiung House” regulations, with large balconies from which to enjoy the sunshine of South Taiwan, vertical greenery, which will provide shade for the interior. The structure will be RC. The building materials will be of high quality, and the underground floors will be for parking.

• Applications have been submitted to obtain government approval to construct.

Site

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－ Development Southward Development Planning

Vietnam Myanmar The scope of the assessment includes The scope of the assessment is Ho Chi Minh City, Hanoi, Da Nang and centered on Yangon City surrounding areas. and the surrounding areas.

The scope of the assessment includes Ho Chi Minh City, Hanoi, Da Nang and surrounding areas.

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－ Properties activation 5A Section Kaohsiung Multi-function Commerce Park in Kaohsiung

• The project area is expected to be under the third comprehensive review of urban planning next year, and the land is currently planned for lease cooperative use.

• It is hoped that the overall commercial development will continue to be active.

• Presently, the southwest section of the site is leased by Yikung Development Co., Ltd. (Decathlon is the operator) and is under construction. Plans are under way to build Decathlon's largest flagship store in South Taiwan.

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Parking Lot Yikung Development Co., LTD (Decathlon is the operator)

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－ Sales & leasing Parami Rd. Joint Venture building in Myanmar

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• This project is located in the downtown area of Yangon, adjacent to Yangon's largest lake, Inya Lake. It was built in cooperation with local partners. The upper floors are for residential use and the lower floors are for office use. This is the Group's first real estate investment in Yangon, Myanmar. • The Group's affiliated company – BES Engineering, served as the PCM for this project, providing professional services and ensuring excellent quality based on international standards.

1.Parami Rd. 0.144 Acres Inya Lake

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Q&A

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