FCFC — Interim / Quarterly Report 2021

Aug 30, 2021

FORMOSA CHEMICALS &

FIBRE CORPORATION

1H2021 Result Conference

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FCFC
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AUG 31,2021

Disclaimer

 The information provided in the document, other than number and data of financial reports, has not been audited or reviewed by any accountant s or any independent third parties. FCFC does not ensure the fairness, completeness and accuracy of the information.  This document may contain forward-looking statements, including but not limited to statements that address activities, events or developments that FCFC expects or anticipates to occur in the future. All statements are based on FCFC’s plan and best knowledge toward the future while subject to various factors and uncertainness beyond FCFC’s control. Therefore, the actual results may differ materially from those contained in the forward-looking statements.

 This document does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments.

 This material must not be copied, reproduced, distributed or passed to others at any time, in whole or in part, without the prior written consent of FCFC.

2

Consolidated Financial Performance

(Amount: NT$ billion)	1H2021	1H2020	YoY	2Q2021	1Q2021	QoQ
Sales Revenue	180	120.4	49.5%	95.9	84.2	13.9%
COGS	(145.5)	(112.8)		(78.3)	(67.3)
Gross Profits	34.5	7.6	353.9%	17.6	16.9	4.1%
Gross Margin	19.2%	6.3%		18.4%	20.1%
Operating Expense	(8.7)	(7.0)		(4.4)	(4.3)
Operating Profit	25.8	0.6	4,200.0%	13.2	12.6	4.8%
Operating Margin	14.3%	0.5%		13.8%	15.0%
Non-Operating Profit (Loss)	7.5	(2.7)	-	3.3	4.2	(21.4%)
Profit Before Tax	33.3	(2.1)	-	16.5	16.8	(1.8%)
Net Profit	27.9	(2.5)	-	13.8	14.1	(2.1%)
Net Profit Margin	15.5%	(2.1%)		14.4%	16.7%
EPS(NTD)	4.32	(0.59)		2.12	2.20

3

Change in Consolidated Revenue –QoQ

(In NT$ billion)

 Sales Revenue

• Operation Income

Consolidated revenue increased 11.7 billion in 2Q2021, up 13.9% compared to 1Q2021.

 Price variance+10.2 billion :

84.2

95.9

Due to the growth of the market demands, natural disasters as well as the abnormality of competitors, prices of crude oil, petrochemical, plastic and other spinning related products rose up.

 Volume variance+1.5 billion :

12.6

13.2

PS and ABS benefited from its downstream demand. Also, Phenol in Mailiao resumed its production from the overhaul and got rid of the impact brought by CNY in 1Q21.

1Q2021

2Q2021

4

Change in Consolidated Revenue –YoY

(In NT$ billion)

 Sales Revenue

Consolidated revenue increased 59.6 billion in 1H2021 compared with it in 1H2020, representing 49.5% growth rate.

• Operation Income

 Price variance+44.03 billion

120.4

180.0

With the pandemic eased down and vaccinated rate rose up, market tended to be vibrant and brisk. Also, prices of crude oil, petrochemical, plastic and other spinning related products rose up due to natural disasters and the abnormality of competitors.

 Volume variance +15.57 billion

0.6

25.8

Increases were attributed to the completion of phenol/ ace- tone and PIA’s productivity expansion, adjustment of Vietnam production structure as well as the economy recovery after the pandemic.

1H2020 1H2021

5

- Change in Profit Before Tax - QoQ

(In NT$ billion)

Profit Before Tax decreased 0.3 billion in 2Q2021 compared to 1Q2021.

 Sales Revenue

 Profit Before Tax

95.9

84.2

 Operating income +0.61 billion Countries who had the pandemic well controlled had a better economic performance, pushing up the prices of end products. However, costs were also driven high by the crude oil price, making the operating

margin performed below expectation.

 Non-Operating income -0.91 billion

16.8

1Q2021

16.5

2Q2021

(1) Investment profit from Equity Method decreased by 0.47 billion. FPCC 0.65 billion less MLPC 0.14 billion more.

• (2) Loss of exchange increased by 0.19 billion. 6

- Change in Profit Before Tax - YoY

(In NT$ billion)

 Sales Revenue

 Profit Before Tax

Profit Before Tax was 33.3 billion, increasing 35.4 billion compared with 1H2020, showing a turn from loss to profit.

120.4

180.0

 Operating income increased +25.2 billion Driven by the post-pandemic demand from mainland and the international trade, prices growth of products were larger than the raw materials, making the operating margin increase.

 Non-Operating income increased +10.2 billion

33.3 11.74 billion.

-2.1

1H2020

1H2021

7

Revenue Breakdown by Segment

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1H2020 1H2021
Petrochemicals 40.50% 43.66%
Plastics 32.10% 35.47%
Others 18.40% 14.26%
Formosa Taffeta
9.00% 6.61%
Co., Ltd.
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3.16% more than 1H20.

In addition to that, its percentage over the total revenue also spiked from 32.1% to 35.47%.

Sales of petrochemical and plastics products accounted for 79.13% of the total revenue in 1H21.

8

Revenue Breakdown by Geography

1H20

Sales Revenue:NT$120.4billion

1H21

Sales Revenue:NT$180billion

China(HK, Mac included):45.6% Rest of Asia:15.9% Americas:1.2% Europe:0.3% Others:1.0% Overseas:64.0%

China(HK,Mac included):42.0% Rest of Asia:11.3% Americas:3.7% Europe:0.9% Others:0.8% Overseas:58.7%

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TW
36.0%
Overseas
64.0%
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TW
41.3%
Overseas
58.7%
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 China(Hong Kong and Macau included) is still our primary market, accounted for 42% of total revenue in 1H21, slightly decreasing from 45.6%.

9

Operating Profits Breakdown by Division

Operating Profit %

% change in Operating Margin

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51.8%
150%
25%
8.8% 7.5% 4.5% 10.7%
19.1% [20.5% ]
100% 4.2% 20% 17.5%
49.6% 46.2%
14.9%
50% 93.9% 93.1% [71.5% ] 15%
60.7%
10.8%
0% -1.9% [20.9% 45.9% 43.1% ] 10%
8.0%
-45.7%
9.5%
5.2% 4.3%
-50% 5%
2.4%
1.8%
0.8%
0.8%
-164.9%
-100% 0%
1.1%
0.1% -0.3%
-150% -5% -3.4%
-6.5%
-10%
-200%
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
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Petrochemicals Plastics Others

Petrochemicals Plastics Others

10

Capacity Expansion Plans

China(Ningbo)

MX/PIA Capacity: Addition 135 KT/200 KT Completed date:2021/Q2

PTA Capacity: Current 1,200 KT Addition 1,500 KT Expected Completion date:2023/Q2

ABS Capacity: Current 500 KT Addition 250 KT Expected Completion date:2022/Q2

Q&A

To Learn more about FCFC, Please visit www.fcfc.com.tw

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