FPC — Interim / Quarterly Report 2017

Aug 28, 2017

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2017 Q2 Operation Performance Highlights June 30, 2017

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Revenue Breakdown by Product (IFRSs consolidated)

2016 Q2 Net Sales: NT$44.8 billion

2017 Q2 Net Sales: NT$52.4 billion

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MTBE
MMA
2%
2%
ECH Others
PVC
1% 14%
24%
AN
5%
HDPE
11%
NBA
Caustic PP
2%
Soda Acrylic 16%
6% Esters
EVA 6%
5%
LLDPE
SAP
4%
2%
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MMA MTBE
2% 2%
Others
ECH PVC
13%
2% 22%
AN
6%
NBA HDPE
1% 10%
PP
Caustic
EVA 16%
Soda Acrylic
5%
9% Esters
6%
LLDPE
4% SAP
2%
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 PVC accounted for 22% and 24% of revenue in 2017 Q2 and 2016 Q2 respectively  PE (HDPE/EVA/LLDPE) accounted for 19% and 20% of revenue in 2017 Q2 and 2016 Q2 respectively

Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 12% and 10% of revenue in 2017 Q2 and 2016 Q2 respectively



Revenue in 2017 Q2 rose 16.9% from 2016 Q2, mainly due to increasing ASP of all products except PE/EVA, ECH and PP, and increasing sales volume of all products except NBA, MTBE and MMA 2



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Operating Profits Breakdown by Product
Specialty Chemicals & Caustic Soda are the key profit
contributors in 2017 Q2
Operating Profits Operating Margins
% %
36%
300%
24%
200%
57%
12%
44%
100% 40% 23%
29%
26%
38% 32% 47% 23% 0%
31% 23% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2
0%
2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017Q2 -12%
-100%
-24%
-200% -36%
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 3

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Capacity Expansion Plan

1. Ningbo , China (Total investment US$ 11 mn)

Current Capacity Expansion Completion Main Products Capacity Increase (MT/p.a.) Date (p.a.) (%) PP 450KMT 72KMT 2019Q2 16.00

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

Current Expansion Completion Main Products Capacity (MT/p.a.) Date (p.a.) HDPE - 400KMT 2018Q3 -

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Capacity
Increase
(%)
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Consolidated Revenue (IFRSs)

NT$ million

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60,000
52,366
50,447
47,796
44,799
42,782
45,000 42,145
30,000
15,000
0
2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2
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 Revenue rose 9.6% in 2017 Q2 from 2017 Q1 mainly due to (1) increasing sales volume given higher utilization rate and (2) lower ASP of PVC, PE, PP and AE

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Pre-tax Income

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NT$million
16,000
13,378
12,129
11,654 11,663
12,000
10,760
8,000
6,653
4,000
0
2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2
 Pre-tax income rose 8.4% in 2017 Q2 from 2017 Q1 mainly due to
(1) lower investment income from FPCC and
(2) FX gain given weak NTD/USD exchange rate
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