FPC — Interim / Quarterly Report 2018

Aug 27, 2018

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2018 Q2 Operation Performance Highlights June 30, 2018

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Revenue Breakdown by Product (IFRSs consolidated)

2017 Q2 Net Sales: NT$52.4 billion

2018 Q2 Net Sales: NT$62.5 billion

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MTBE
ECH NBA ECH NBA MTBE
2%
MMA 2% 1% 2% 2% 2%
2% Others MMA Others
PVC PVC
SAP 13% 3% 11%
2% 22% LLDPE 19%
LLDPE
3% PP
4% PP
EVA
16%
16% EVA
5%
SAP
AN Acrylic HDPE 3% 6% AN Caustic
6% Esters Caustic 10% 7% HDPE Soda
6% Soda 8% Acrylic 10%
9% Esters
8%
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 PVC accounted for 19% and 22% of revenue in 2018 Q2 and 2017 Q2 respectively  PE (HDPE/EVA/LLDPE) accounted for 17% and 19% of revenue in 2018 Q2 and 2017 Q2 respectively

Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 14% and 12% of revenue in 2018 Q2 and 2017 Q2 respectively



Revenue in 2018 Q2 rose 19.3% from 2017 Q2, mainly due to increasing ASP of all products, and increasing sales volume of PVC, AE, AN, PP and EVA



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Operating Profits Breakdown by Product Specialty Chemicals & Caustic Soda are the key profit contributors in 2018 Q2

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Operating Profits Operating Margins
% %
36%
150%
24%
100%
12%
44%
29% 27%
31% 36%
26%
50% 23% 0%
25%
24%
2017 Q1 2017 Q2 2017 Q3 2017Q4 2018Q1 2018 Q2
-12%
23% 24% 22%
0%
2017 Q1 2017Q2 2017 Q3 2017 Q4 2018Q1 2018 Q2
-24%
-50% -36%
PVC PE PVC PE
Acrylic Acid & Esters Caustic Soda Acrylic Acid & Esters Caustic Soda
Specialty Chemicals PP Specialty Chemicals PP
SAP Others SAP SALES
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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$ 811 mn)

Current Capacity Expansion Completion Main Products Capacity Increase (MT/p.a.) Date (p.a.) (%) PP 474KMT 48KMT 2019Q1 10.13 - Propylene* 600KMT 2021Q2 100.00

*Note: PDH (propane dehydrogenation) process.

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

Current Capacity Expansion Completion Main Products Capacity Increase (MT/p.a.) Date (p.a.) (%) HDPE - 400KMT 2019Q1 -

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Consolidated Revenue (IFRSs)

NT$ million

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62,476
64,000
54,167
52,366 53,480 53,068
47,796
48,000
32,000
16,000
0
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2
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 Revenue rose 15.3% in 2018 Q2 from 2018 Q1 mainly due to higher ASP of Caustic Soda, AN and MMA

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Pre-tax Income

22,500 NT$million							20,479
17,997 11,663 10,760 13,500 18,000	14,484			13,729
4,500 9,000
Pre-tax income rose 49.2% in 2018 Q2 from 2018 Q1 mainly due to (1) higher investment income from FPCC and FPC-USA (2) cash dividends from Nanya Tech in 2018 Q2 0 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2

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