FPC — Interim / Quarterly Report 2015

Sep 7, 2015

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2015 Q2 Operation Performance Highlights June 30, 2015

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Revenue Breakdown by Product (IFRS)

2014 Q2 Net Sales: NT$59.0 billion

2015 Q2 Net Sales: NT$51.0 billion

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MTBE
MTBE
MMA MMA
3%
2%
2% 2%
Others
ECH 14% PVC ECH Others PVC
2% 21% 2% 15% 21%
AN HDPE HDPE
AN
6% 10% 9%
6%
PP PP
Caustic Caustic
NBA NBA
Soda Acrylic 17% Soda Acrylic 19%
2% Esters 2% Esters
6% 6%
EVA 7% 6%
EVA
3%
LLDPE 4% LLDPE
5% SAP 4% SAP
2% 2%
 PVC accounted for 21% and 21% of revenue in 2015 Q2 and 2014 Q2 respectively
 PE (HDPE/EVA/LLDPE) accounted for 17% and 18% of revenue in 2015 Q2 and 2014
Q2, respectively
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Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 12% and 13% of revenue in 2015 Q2 and 2014 Q2, respectively



Revenue in 2015 Q2 fell 13.6% from 2014 Q2, mainly due to decreasing ASP of all products and sales volume of PVC, Caustic Soda, HDPE, LLDPE and MTBE



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Operating Profits Breakdown by Product
PP & Specialty Chemicals are the key profit contributors
Operating Profits Operating Margins
% %
20%
200%
10%
33%
100%
70% 34%
47%
42%
35% 48% 33%
24% 0%
27% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2
44%
23%
0%
2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 -10%
-100% -20%
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|11/2014|17.50|
|AE|230,000 MT|190,000 MT|6/2015|82.61|
|SAP|45,000 MT|45,000 MT|4/2015|100.00|
|EVA|-|72,000 MT|10/2015|-|

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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$ million

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59,029
60,000
55,341
51,990
50,229 51,007
47,697
45,000
30,000
15,000
0
2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2
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• Revenue rose 6.9% in 2015 Q2 from 2015 Q1 mainly due to increasing sales volume of AN, MMA, AE, PP and increasing ASP of PVC, PE, PP

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Pre-tax Income

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NT$million
15,000
12,229
10,000
8,003 8,058
4,796
4,452
5,000
0
2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2
-305
-5,000
 Pre-tax income rose in 2015 Q2 from 2015 Q1 mainly due to increasing
investment income from FPCC
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