FPC — Interim / Quarterly Report 2016

Aug 26, 2016

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2016 Q2 Operation Performance Highlights June 30, 2016

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Revenue Breakdown by Product (IFRS)

2015 Q2 Net Sales: NT$51.0 billion

2016 Q2 Net Sales: NT$44.8 billion

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MTBE
MTBE MMA
MMA 2%
2% 2%
2%
Others ECH Others
ECH PVC PVC
15% 1% 14%
2% 21% 24%
AN
HDPE
AN 5%
9% HDPE
6% NBA
11%
Caustic PP 2% Caustic PP
NBA
Soda Acrylic 19% Soda Acrylic 16%
2%
Esters 6% Esters
6% EVA
6% 6%
EVA 5%
LLDPE
4% LLDPE
SAP 4% SAP
4%
2% 2%
 PVC accounted for 24% and 21% of revenue in 2016 Q2 and 2015 Q2 respectively
 PE (HDPE/EVA/LLDPE) accounted for 20% and 17% of revenue in 2016 Q2 and 2015
Q2, respectively
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Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 10% and 12% of revenue in 2016 Q2 and 2015 Q2, respectively Revenue in 2016 Q2 fell 12.2% from 2015 Q2, mainly due to decreasing ASP of all products and sales volume of Caustic Soda, LLDPE and PP





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Operating Profits Breakdown by Product
PP & PE are the key profit contributors
Operating Profits Operating Margins
% %
24%
300%
86%
200%
12%
44%
100% 34% 42% 40%
47%
80%
33% 24% 40% 38% 32% 0%
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2
0%
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2
-12%
-100%
-200% -24%
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

1. Ningbo , China (Total investment US$ 676 mn)

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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|1/2015|17.50|
|AE|230,000 MT|190,000 MT|7/2015|82.61|
|SAP|45,000 MT|45,000 MT|4/2015|100.00|
|EVA|-|72,000 MT|4/2016|-|

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2. Texas, USA (Total investment US$ 540 mn)

Current Capacity (p.a.)

Capacity Increase (%)

Expansion Completion (MT/p.a.) Date - - 400,000 MT 9/2018

Main Products

HDPE

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Consolidated Revenue (IFRS) NT$ million

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60,000
51,007
47,697
46,995 45,846
44,799
42,782
45,000
30,000
15,000
0
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2
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• Revenue rose 4.7% in 2016 Q2 from 2016 Q1 mainly due to increasing ASP of PVC, PE, PP and AE, increasing sales volume of AN and PE/EVA

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Pre-tax Income

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NT$million
16,000
12,229
11,745 11,654
12,000
8,000
6,668 6,653
4,452
4,000
0
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2
 Pre-tax income rose in 2016 Q2 from 2016 Q1 mainly due to increasing
investment income from FPCC
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