FPC — Interim / Quarterly Report 2017

Jun 14, 2017

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2017 Q1 Operation Performance Highlights March 31, 2017

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Revenue Breakdown by Product (IFRS)

2016 Q1 Net Sales: NT$42.8 billion

2017 Q1 Net Sales: NT$7.8 billion

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MMA MTBE
2% 2%
ECH
2% Others PVC
13%
AN 24%
4%
NBA HDPE
1% 8%
EVA Caustic
PP
5% Soda
Acrylic 15%
9%
Esters
LLDPE 8%
5% SAP
2%
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MMA MTBE MMA MTBE
2% 2% 2% 2%
ECH
ECH Others PVC 2% Others PVC
2% 14% 23% AN 13% 24%
AN
4%
4%
NBA HDPE NBA HDPE
1% 10% 1% 8%
EVA Caustic
PP
EVA Caustic PP 5% Soda
5% Soda Acrylic 16% 9% Acrylic 15%
Esters Esters
8%
6% LLDPE 8%
LLDPE 5% SAP
SAP
5% 2%
2%
 PVC accounted for 24% and 23% of revenue in 2017 Q1 and 2016 Q1 respectively
 PE (HDPE/EVA/LLDPE) accounted for 18% and 20% of revenue in 2017 Q1 and 2016
Q1 respectively
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Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 10% of revenue both in 2017 Q1 and 2016 Q1



Revenue in 2017 Q1 rose 11.7% from 2016 Q1, mainly due to increasing ASP of all products except ECH, and increasing sales volume of Caustic Soda, EVA & LLDPE



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Operating Profits Breakdown by Product
Caustic Soda & PVC are the key profit contributors in 2017 Q1
Operating Profits Operating Margins
% %
36%
300%
24%
200%
57%
12%
44%
100% 40% 23%
26%
47% 0%
38% 32%
31% 23% 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1
0%
2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 -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 450,000 MT 72,000 MT 6/2019 16.00 2. Texas, USA (Total investment US$ 540 mn)(Total investment US$ 540 mn) Current Capacity Expansion Completion Main Products Capacity Increase (MT/p.a.) Date (p.a.) (%) HDPE - 400,000 MT 9/2018 -

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

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Consolidated Revenue (IFRS)

NT$ million

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60,000
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
 Revenue fell 5.3% in 2017 Q1 from 2016 Q4 mainly due to
(1) decreasing sales volume given lower utilization rate and
(2) higher ASP of PE, PP, AE and specialty chemicals
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Pre-tax Income

16,000 NT$million	13,378
12,129 11,654 12,000				10,760
6,653 8,000
4,000
Pre-tax income fell 19.6% in 2017 Q1 from 2016 Q4 mainly due to (1) lower investment income from FPCC & FGC and (2) FX loss given strong NTD/USD exchange rate 0 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1

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