FPC — Interim / Quarterly Report 2014

Sep 9, 2014

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2014 Q2 Operation Performance Highlights June 30, 2014

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Revenue Breakdown by Product (IFRS)

2013 Q2 Net Sales: NT$56.3 billion

2014 Q2 Net Sales: NT$59.0 billion

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MTBE
MMA MTBE
3% MMA
2% 3%
2%
ECH Others
Others
2% 12% PVC ECH PVC
14%
22% 2% 21%
AN
HDPE
5% HDPE AN
10%
6%
10%
NBA Caustic PP NBA Caustic PP
3% Soda Acrylic 16% 2% Soda Acrylic 17%
Esters Esters
EVA 6% 6%
8% 7%
EVA
3%LLDPE 3% LLDPE
4% SAP 5% SAP
4% 2%
 PVC accounted for 21% and 22% of revenue in 2014 Q2 and 2013 Q2 respectively
 PE (HDPE/EVA/LLDPE) accounted for 18% and 17% of revenue in 2014 Q2 and 2013
Q2, respectively
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Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 13% and 12% of revenue in 2014 Q2 and 2013 Q2, respectively



 Revenue in 2014 Q2 rose 4.9% from 2013 Q2, mainly due to increasing sales volume of Caustic Soda, LLDPE, AN and PP; increasing ASP of PVC, PE, Specialty Chemicals and PP 2

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Operating Profits Breakdown by Product
Specialty Chemicals & PE are the key profit contributors
Operating Profits Operating Margins
% %
30%
300%
200%
72% 20%
29%
100% 49% 20%
42%
32% 45% 42% 35% 10%
69% 27%
23%
0%
2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2
0%
-100%
2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2
-200% -10%
PVC PE PVC PE
Acrylic Acid & Esters Caustic Soda Acrylic Acid & Esters Caustic Soda
Specialty Chemicals PP Specialty Chemicals PP
SAP Others SAP
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Note : Specialty Chemicals include AN, MTBE, MMA and ECH
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Capacity Expansion Plan in Ningbo, China

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||||||
|---|---|---|---|---|
|Current|Capacity|
|Expansion|Completion|
|Main Products|Capacity|Increase|
|(MT/p.a.)|Date|
|(p.a.)|(%)|
|PVC|400,000 MT|70,000 MT|9/2014|17.50|
|AE|230,000 MT|200,000 MT|12/2014|86.96|
|SAP|45,000 MT|45,000 MT|12/2014|100.00|
|EVA|-|72,000 MT|6/2015|-|

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 Note ： FPC will invest new projects in Ningbo, total investment is US$750 mn, and got PRC’s approval of environmental evaluation already.

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Consolidated Revenue (IFRS)

NT$millio 60,000n 56,290 55,946 59,029 53,145 51,990 50,044 45,000 30,000 15,000 0 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2

 Revenue rose 13.5% in 2014 Q2 from 2014 Q1 mainly due to increasing sales volume of PVC, PE and PP

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Pre-tax Income

NT$million

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10,000
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8,003
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7,500 6,964
6,384
5,647
4,796
5,000
4,169
2,500
0
2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2
 Pre-tax income fell in 2014 Q2 from 2014 Q1 mainly due to decreasing
investment income from FPCC and disposal gain for FPCC’s stock in
2014 Q1
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