FPC — Interim / Quarterly Report 2020

Mar 8, 2021

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Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2020 Q3 Operation Performance Highlights September 30, 2020

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Revenue Breakdown by Product (IFRSs consolidated)

2019 Q3 Net Sales: NT$50 billion

2020 Q3 Net Sales: NT$46 billion

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MMA NBA MTBE ECH NBA MTBE
ECH MMA
2% 2% 1% 2% 2% 1%
2% 2%
Others Others
LLDPE 11% PVC SAP 10% PVC
3% SAP 23% 3%AN 24%
3% 4% Caustic
Soda
EVA
PP
6% Acrylic EVA 5% PP
AN 17%
Esters 7%Acrylic 18%
7% HDPE Esters HDPE
7%
Caustic 8% 7% LLDPE 8%
Soda 7%
8%
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 PVC accounted for 24% and 23% of revenue in 2020 Q3 and 2019 Q3 respectively

 PE (HDPE/EVA/LLDPE) accounted for 22% and 17% of revenue in 2020 Q3 and 2019 Q3 respectively

 Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 9% and 12% of revenue in 2020 Q3 and 2019 Q3 respectively

 Revenue in 2020 Q3 fell 7.1% from 2019 Q3, mainly due to decreasing ASP of all products and decreasing sales volume of Caustic Soda, AN, MTBE and MMA

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Operating Profits Breakdown by Product
PVC & PP are the key profit contributors in 2020 Q3
Operating Profits Operating Margins
% %
36%
150%
24%
50%
100%
12%
34% 27%
18% 33% 37% 24%
50% 0%
52%
54% 41%
28% 31% 54% -12%
18%
0%
2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3
-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|
|Renwu, Taiwan|PVC|1,315KMT|27KMT|2022Q4|2|
|Linyuan, Taiwan|PVC|1,342KMT|37KMT|2022Q4|2|
|Mailiao, Taiwan|PVC|1379KMT|36KMT|2022Q4|3|
|Mailiao, Taiwan|SAP|60KMT|10KMT|2020Q4|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
46,175
48,000 42,984
42,019
32,000
16,000
0
2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3
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 Revenue rose 7.4% in 2020 Q3 from 2020 Q2 mainly due to increasing ASP of all products except for Caustic Soda, SAP and ECH

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Pre-tax Income

NT$million 18,000 16,706 12,572 13,500 11,181 9,334 9,000 3,607 4,500 130 0 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 -107 -4,500  Pre-tax income rose in 2020 Q3 due to investment income from FPCC and cash dividend from NPC

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