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ETERNAL — Interim / Quarterly Report 2021
May 12, 2021
51898_rns_2021-05-12_853c672b-ae94-4db7-8978-62682670af44.pdf
Interim / Quarterly Report
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Eternal Materials
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2021 First Quarter Earnings Conference
Speaker : Benson LIU, Spokesman / CFO
2021/5/12
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Outline
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Profile Overview、Development Milestones、Business Group 、 Global Production Sites/Service Network/R&D Sites 、 Annual Sales Distribution
1Q21 Financial results
Key messages
Q&A
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Profile - Overview
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Core Business： Manufacturing, processing and sales
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：
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Founding in 1964, Headquarter in Kaohsiung, Taiwan
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• Year of Listed on Taiwan Stock Exchange：1994
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Chairman： Allen K. L. Kao
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Number of Employees： 4,864[1]
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Number of Production Sites：23 (3 in Taiwan, 13 in Mainland China, 1 in United States,
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1 in Thailand, 3 in Japan, 1 in Malaysia and 1 in Italy) • Overall Sales Revenue in 2019： USD 1,299 million[2]
• Headcounts of Researchers：591 (R&D expenditures accounted for 4% of sales revenue)
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Eternal is:
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One of the leading suppliers of Dry film photoresist in the world.
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One of three largest UV curable Monomers & Oligomers material suppliers.
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One of the leading suppliers of synthetic resin in Asian.
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1.Number of Employees on March 31,2021
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2.refer to year 2020 Consolidated statement
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Profile-Development Milestones
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1964 1985 1989 2000 2004 2008 2013 2016 2020+
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Profile-Business Group
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Resin Materials 48.2% Dry Film Photoresist 、 Dry Film Solder Mask 、 UV INK 、 Dry Film Photosensitive Polyimide 、 Alkyd Resin 、 Solvent-Based Acrylic Coating Resin 、 Liquid Polyimide Material 、 Vacuum Laminator 、 Water-Based Acrylic Coating Resin 、 Toll Coating Service 、 Acrylic Resin For Adhesives and Overprinting 、 Paper Phenolic Copper Clad Laminate 、 Polyester Polyol Resin 、 Fluorocarbon Resin 、 Composite Epoxy Copper Clad Laminate Polyurethane Resin 、 Saturated Polyester Resin 、 Amino Resin 、 Optoelectronic Materials 、 Other Coatings Resin 、 Unsaturated Polyester Resin 、 2020 Vinyl Ester Resin 、 Fire Retardant Resin 、 Electronic Materials Epoxy System 、 Structural Adhesive 、 Consolidated Revenue 33.5% Polyester for Polyurethane Foam USD 1,299 Million UV Monomers 、 UV Oligomers 、 Enzyme, antibody for IVD, conductive polymer Special Coatings 、 silicone powder 、 Liquid molding compound, Additives 、 3D UV printing Material 、 Binder, electrolyte, Si/C for LIB materials EMC 、 Optical Silicone & Epoxy material - Hydrophilic film for strip for LED Packaging
High Performance Materials 17.6%
Others 0.7%
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Profile-Global Sites : Production / Sales / R&D
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Production 23 Buyers’ 65 Service 35 R&D 11
Sites countries Network Sites
Resin Materials：8
Electronic Materials：14
High Performance Materials： 3
China
Japan
Korea
Production：13
Sale：18 Production：3
Sale：1
R&D Center：1 Sale：3
Lab：1
Italy Applied Lab：7
USA Taiwan
Production：1
Sale：1
Production：1 India Production：3
Sale：1 Vietnam Sale：5
Sale：1 R&D Center：1
Sale：1 Applied Lab：1
Indonesia
Thailand
Production：1 Sale：1
Sale：2
Malaysia
Production：1
Sale：1
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Profile-Annual Sales Distribution
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(In the recent 5 years)
Unit : USD million
1,600
1,436
1,365 Group
1,400 1,303 1,299
189 China
1,200
Other
1,000 890
845
793 Taiwan
738
800 799
600
400 394
370 364 339
315
200
146 150 152 146 160
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2016 2017 2018 2019 2020
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Financial Information-Balance Sheets & Key Indices
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| 2019 Amount % 6,076 11 Unit：NT$ Millions |
2019 Amount % 6,076 11 Unit：NT$ Millions |
2019 Amount % 6,076 11 Unit：NT$ Millions |
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|---|---|---|---|---|---|---|---|---|---|
| 2021Q1 | 2020 | 2019 | |||||||
| Amount | % | Amount | % | Amount | % | ||||
| Cash and cash equivalents and current financial assets |
6,304 | 11 | 6,170 | 11 | 6,076 | 11 | |||
| Accounts receivable | |||||||||
| 17,471 | 30 | 17,523 | 31 | 15,361 | 29 | ||||
| Inventories | 8,529 | 15 | 7,493 | 13 | 7,182 | 13 | |||
| Financial assets | 3,570 | 6 | 3,344 | 6 | 3,043 | 6 | |||
| Property, plant and equipment | 16,390 |
28 | 16,623 | 30 | 17,436 | 32 | |||
| Total Assets | 57,550 | 100 | 56,189 | 100 | 53,797 | 100 | |||
| **Short-term borrowings ** | 5,521 | 10 | 4,404 | 8 | 4,415 | 8 | |||
| Current portion of long-term borrowings |
2,340 | 4 | 2,211 | 4 | 4,547 | 9 | |||
**Long-term borrowings ** |
12,531 | 22 | 13,185 | 23 | 11,924 | 22 | |||
| Total Liabilities | 33,725 | 59 | 32,950 | 59 | 31,877 | 59 | |||
| Total Equity | 23,826 | 41 | 23,238 | 41 | 21,920 | 41 | |||
| Key Financial Ratios | |||||||||
**Average cash collection days ** |
145 | 159 | 139 | ||||||
| A d id f l | 86 | 93 | 86 | ||||||
| verage ays requre or sae | |||||||||
| Eternal Materials Current ratio(%) |
200 | 9 | 210 | 191 | |||||
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Financial Information-Statements of Comprehensive Income
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Unit：NT$ Millions
| Unit：NT$ Millions | ||||
|---|---|---|---|---|
| 2021Q1 | 2020 | 2019 | ||
| Amount % |
Amount % |
Amount % |
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| Operating Revenue | 11202 100 |
38370 100 |
40363 100 |
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| , |
, |
, |
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| Gross profit | 2,563 23 |
8,886 23 |
7,857 19 |
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| Operating expenses | (1,538) (14) |
(5,747) (15) |
(5,522) (14) |
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| Operating Income | 1,025 9 |
3,139 8 |
2,335 6 |
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| Non-operating income and expenses |
33 0 |
6 0 |
579 1 |
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Net profit attributable to owners of the company |
825 |
2,543 | 2,466 | |
| Key Financial Ratios | ||||
| Net profit margin | 7 | 6 | 6 | |
| EPS | 0.66 | 2.05 | 1.99 | |
| ROE | 14 | 11 | 11 | |
| Eternal Materials | 1 | 0 |
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Financial Information-Cash Flow Statements
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| Unit：NT$ Millions | ||||
|---|---|---|---|---|
| 2021Q1 | 2020 | 2019 | ||
| Amount | Amount | Amount | ||
| Cash and cash equivalents at the beginning of the year |
6,108 | 6,010 | 6,085 | |
Cash flows from operating activities |
110 | 4,148 | 4,946 | |
Acquisition of property, plant and equipment |
(481) | (1,458) | (2,111) | |
Increase (decrease) in borrowings |
646 | (997) | (2,228) | |
Dividends paid |
0 | (1,736) | (1,116) | |
| Other items | (1,212) | 134 | 914 | |
| Effects of exchange rate changes on cash and cash equivalents |
(126) | 7 | (480) | |
Cash and cash equivalents at the end of the period |
5,045 | 6,108 | 6,010 | |
Free cash flow |
(371) | 2690 | 2,835 | |
| Note: Free cash flow= Cash flows from oeratin activities-Acuisition |
of roert lant and euiment | |||
| y, |
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Sales Revenues & Gross Profits
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Unit：NT$ Millions
| Unit：NT$ Millions | ||||||
|---|---|---|---|---|---|---|
| Sales | ||||||
| Q121 y/y q/q |
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| Sales +47% -6% |
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| Sales | 7,630 | 8,956 | 9,889 | 11,896 | 11,202 | |
| Gross Profits |
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| Gross Profits +58% -7% |
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| GP | 1,622 | 2,129 | 2,390 | 2,745 | 2,563 | |
| GPM | 21.3% | 23.8% | 24.2% | 23.1% | 22.9% | |
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Performance by Segment
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NT$ Millions Sales Operating Profits Sales %
Resin Materials
Electronic Materials
High Performance Materials
y/y q/q y/y q/q
Others
1% 1% 1%
Resin
5,456 +49% -6% 235 +95% -20% 19% 18% 19%
Materials
32% 32% 31%
Electronic
3,511 +42% -11% 605 +250% -10%
Materials
48% 49% 49%
High
Performance 2,159 +50% +4% 289 +127% +22%
Materials 1Q20 4Q20 1Q21
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Recap of Recent Major Events
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Eternal Materials Board of Directors Approved NTD1.5 Cash Dividend for the year of 2020 (2021/03/26)
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Eternal Materials Board of Directors Approved the Establishment of a WhollyOwned Subsidiary in Anhui, China to Expand Resin Production, with a Capital appropriation of CNY350 Million(2021/03/26)
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Eternal Materials Board of Directors Approved a Capital appropriation of CNY90.52 Million in Subsidiary Eternal Electronic (Suzhou) Co., Ltd. to Expand the Dispensing Coating Production Line (2021/03/26)
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Eternal Materials Board of Directors Approved the Issuance of NT DollarDenominated Secured Corporate Bonds for an Amount Not to Exceed NTD 3 Billion (2021/05/07)
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Q & A
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Thank you
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