FPC — Interim / Quarterly Report 2020

Aug 25, 2020

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2020 Q2 Operation Performance Highlights June 30, 2020

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Revenue Breakdown by Product (IFRSs consolidated)

2019 Q2 Net Sales: NT$57 billion

2020 Q2 Net Sales: NT$43 billion

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MTBEMMA MMA NBA
LLDPE 2% 2% ECH 1% 1%MTBE
2% NBA Others 2% 1% [Others]
ECH 2% 12% PVC SAP 11% PVC
22% 22%
2% SAP 4% AN
3% 4% EVA
EVA PP 6% PP
6% 17% 19%
AN Acrylic Caustic Acrylic LLDPE
7% Esters HDPE Soda Esters 7% Caustic HDPE
7% Soda 8%
7% 8% 8%
7%
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 PVC accounted for 22% and 22% of revenue in 2020 Q2 and 2019 Q2 respectively  PE (HDPE/EVA/LLDPE) accounted for 21% and 16% of revenue in 2020 Q2 and 2019 Q2 respectively  Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 8% and 13% of revenue in 2020 Q2 and 2019 Q2 respectively  Revenue in 2020 Q2 fell 24% from 2019 Q2, mainly due to decreasing ASP of all products and decreasing sales volume of all products except for HDPE, EVA, LLDPE, NBA, SAP and PP

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Operating Profits Breakdown by Product
PVC & PP are the key profit contributors in 2020 Q2
Operating Profits Operating Margins
% %
36%
150%
24%
50%
100%
12%
34%
18% 33% 37% 24%
50% 0%
54% 54% 41%
28% 31% -12%
18%
0%
2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 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
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Note : Specialty Chemicals include AN, MTBE, MMA and ECH

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Capacity Expansion Plan

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|||||||
|---|---|---|---|---|---|
|Current|
|Expansion|Completion|Investment|
|Location|Products|Capacity|
|(p.a.)|Date|(US$ mn)|
|(p.a.)|
|Ningbo, China|Propylene*|-|600KMT|2021Q3|800|
|EVA|72KMT|28KMT|2023Q1|44|
|Linyuan, Taiwan|PVC|1,315KMT|29KMT|2020Q4|1.9|
|Renwu, Taiwan|PVC|1,344KMT|27KMT|2020Q4|1.9|
|Mailiao, Taiwan|SAP|60KMT|10KMT|2021Q1|2.5|

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*Note: PDH (propane dehydrogenation) process.

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Consolidated Revenue (IFRSs)

NT$ million

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64,000
56,569
53,012
49,715 48,552
48,000 42,984
42,019
32,000
16,000
0
2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2
 Revenue rose 2.3% in 2020 Q2 from 2020 Q1 mainly due to
increasing sales volume of all products except for Caustic Soda
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Pre-tax Income

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NT$million
18,000 16,706
12,572
13,500
9,334
9,000
3,607
4,500
130
0
2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2
-107
-4,500
 Pre-tax income declined in the loss due to investment loss from
FPCC and FPC USA and FX (exchange) loss in 2020 Q2
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