FPC — Interim / Quarterly Report 2019

May 21, 2019

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2019 Q1 Operation Performance Highlights March 31, 2019

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Revenue Breakdown by Product (IFRSs consolidated)

2018 Q1 Net Sales: NT$54.2 billion

2019 Q1 Net Sales: NT$53.0 billion

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MMA MTBE NBA MMA MTBE
2% 2% 1% 2% 2% [NBA]
ECH Others ECH 2% Others
PVC PVC
3% 11% 2% 12%
LLDPE 20% LLDPE 21%
3% SAP PP 3% SAP
PP
3% 3%
EVA 16%
EVA 17%
6%
AN Acrylic Caustic 6% AN HDPE
6% Esters HDPE Soda 4% Acrylic Caustic 9%
7% 8% 12% Esters Soda
8% 9%
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 PVC accounted for 21% and 20% of revenue in 2019 Q1 and 2018 Q1 respectively

 PE (HDPE/EVA/LLDPE) accounted for 18% and 17% of revenue in 2019 Q1 and 2018 Q1 respectively

 Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 10% and 13% of revenue in 2019 Q1 and 2018 Q1 respectively

 Revenue in 2019 Q1 fell 2.1% from 2018 Q1, mainly due to decreasing ASP of Caustics Soda, HDPE, LLDPE, NBA, AN, MTBE, MMA and ECH, and decreasing sales volume of SAP, MMA and ECH

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Operating Profits Breakdown by Product PVC & Specialty Chemicals are the key profit contributors in 2019 Q1

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Operating Profits Operating Margins
% %
150% 36%
24%
100%
12%
31% 36% 42%
49% 18%
50% 0%
25%
24%
18%
28% -12%
21%
0%
2018Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1
-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
2017 Q12017 Q22017 Q32017Q42018Q12018 Q22018 Q32018 Q42019 Q1
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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 492KMT 30KMT 2019Q3 6.1 - Propylene* 600KMT 2021Q3 100.00

*Note: PDH (propane dehydrogenation) process.

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

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Current Capacity
Expansion Completion
Main Products Capacity Increase
(MT/p.a.) Date
(p.a.) (%)
HDPE - 400KMT 2019Q2 -
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Consolidated Revenue (IFRSs)

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NT$ million
62,476
64,000
57,374
56,352
54,167
52,366 53,480 53,068 53,012
47,796
48,000
32,000
16,000
0
2017 2017 2017 2017 2018 2018 2018 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
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 Revenue fell 2.1% in 2019 Q1 from 2018 Q4 mainly due to decreasing ASP of all products except for PVC

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Pre-tax Income

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NT$million
22,500
20,479
19,798
17,997
18,000
14,484
13,729
13,500
11,663
10,760
9,334
9,000
4,500 3,087
0
2017 2017 2017 2017 2018 2018 2018 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
 Pre-tax income rose 202.4% in 2019 Q1 from 2018 Q4 mainly due to
(1) higher investment income from FPCC and FPC-USA
(2) assets impairment in 2018 Q4
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