NPC — Annual Report 2018

Mar 7, 2019

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Nan Ya Plastics Year 2018 Operations & Performance

Mar. 2019

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Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

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Overview

Highlights

• Market Capitalization NT$ 601.1 billion (Mar. 2019)

• The 8th largest company in Taiwan in terms of market capitalization

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Sales
Revenue
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• NT$ 333.1 billion

• (Y2018, unaudited number, not include Nanya Tech. Co.)

• Sales breakdown

• -14% in plastics

• -29% in chemicals

• -35% in electronics

• -20% in polyesters

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Market Capitalization

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Worldwide
Distribution
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• Total number of

• Plants 99

  • -53 in Taiwan

  • -41 in China

  • -5 in US

• Number of Employees 32,762

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Overview Leading market positions for capacity

• 1 2 4 8

• � Plastics processing � Copper foil � EG � Polyesters � Epoxy resin � Copper clad � Glass yarn laminates

• Glass fabrics cloth

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Overview History

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Nan Ya USA
Chemicals
Plastics Processing &America Co. Nanya Tech Co.
� Texas
� Louisiana
1958 1979 1995 1999
� South Carolina
Electronics Investing in � Xiamen
� Guangzhou
Polyesters & Nan Ya PCB Co. China
� Nantong
� Kunshan
1969 1986 1996 � Huizhou
� Ningbo
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Overview Major Businesses

Plastics 14% PVC Sheeting, PVC Rigid China & Others 30% Film, PU Leather, PVC USA 10% Rigid Pipe & Fittings, Window & Door Frames, Films, Engineering and PVC Taiwan 60% Compounds, PP Synthetic Paper

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29%

Chemicals

	Taiwan China USA 2% 89% 9%

EG, BPA, 1,4BG, DEHP, PA, 2EH, INA, MA

Sales breakdown in 2018(Unaudited number) Electronics 35% Glass Yarn, Glass Fabrics cloth, Epoxy Resin, China 60% Copper Foil, Copper Clad Laminate, Printed Circuit Board Taiwan 40%

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20%

Polyesters

Polyester Staple Fiber, PET Resin, Filament, PET Film Chin	52% 45% 3% a & Others USA Taiwan

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Financial Highlights Consolidated Revenue (IFRS)

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(NT$ billion )
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� Revenue in 2018 increased 8.8% YoY due to:

The rise in the price of polyester products and electronic materials, and the increase in demand for chemical products, coupled with the moderate increase in crude oil prices in the first three quarters, led to revenue increased significantly

• Revenue in 2018 4Q decreased 4.7% YoY due to :

US-China trade disputes, the impact of falling international crude oil prices, selling prices and sales volume decreased

*Unaudited number

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Financial Highlights Pre-tax Income

(NT$ billion )

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• 2.0% YoY decrease in 2018 pre-tax income due to:

• 2018 4Q trade disputes and oil prices fell rapidly, profits decreased slightly

• Equity income decreased NT$5.4bn YoY :

  • (1) FPCC -NT$4.6bn (2) Nanya Tech -NT$1.4bn (3) NYPCB +NT$0.9bn

• 2018 4Q pre-tax income decreased 71.3% YoY due to ：

• Operating income decreased 52.1% YoY, oil prices fell rapidly, and chemical products profit decreased

• Equity income decreased NT$10.9bn YoY :

  • (1) FPCC -NT$6.3bn (2) Nanya Tech -NT$4.6bn

*Unaudited number

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Financial Highlights Revenue Breakdown

2018 Net Sales NT$ 333.1 billion*

2018 Sales Breakdown* by Geography

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Others EU Others
1.8% 2.1% 3.1%
Plastics
Other
13.7%
Electronics
Asia China
35.1%
14.4% 39.2%
Polyesters
America
20.4%
13.7%
Domestic
Chemicals
27.5%
29.0%
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• Revenue of polyesters, chemicals and electronic materials increased due to the strong demand, the sales volume and price raised up

• Main revenue contribution in the next few years is still driven by chemicals and electronic materials

• Mainland China remains the most important market, accounting for 54% of total overseas in 2018

*Unaudited number

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Financial Highlights Revenue Breakdown by Product Segment

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2017 4Q Net Sales 2018 4Q Net Sales
NT$ 81.5 billion NT$ 77.7 billion
Others
Others
2.0%
1.7%
Plastics
Plastics
13.8%
14.3%
Electronics
Electronics
35.5%
36.8%
Polyesters
Polyesters
18.9%
20.5%
Chemicals
Chemicals
28.8%
27.7%
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• Revenue in 2018 4Q decreased 4.7% YoY

• US-China trade disputes and international crude oil prices fall, chemical and electronics revenues decreased

*Unaudited number

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Financial Highlights Operating Profits Breakdown by Product Segment

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Operating Profits Operating Margins
20.0%
120.0% 18.4%
17.6%
0.2% 18.0%
100.0% 4.7%
8.0%
11.3% 12.1% [16.6%] 16.0%
14.0%
13.9%
14.0%
80.0% 31.8%
28.0%
48.4%
34.8%
49.7% 12.0% 12.9%
60.0% 10.2%
10.0%
8.2% 8.7%
40.0% 8.0%
51.0% 50.6% 6.9%
8.1%
41.2% 44.1% 28.8% 7.5% 6.0%
6.0%
5.1%
20.0%
5.3% 5.6% 5.3% 4.4%
4.0%
7.5% 9.8% 9.9% 9.1% 12.7% 4.4% 4.0%
0.0% 2.0%
-0.1% 2.4%
-0.6%
-1.8%
-7.8%
0.0%
-20.0%
4Q17 1Q18 2Q18 3Q18 4Q18
4Q17 1Q18 2Q18 3Q18 4Q18
Plastics Chemicals
Plastics Chemicals Electronics
Electronics Polyester
Polyester Others
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*Unaudited number

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Business Overview Capacity Expansion Plan

Area	Product	Unit	Annual Capacity	Annual Capacity	Annual Capacity	Completion Date
			current	Expansion	Increase%
Taiwan	Pepa Synthetic Paper	KMT	65	22	34	2019/5
	Copper Foil	KMT	36	18	50	2020/1
	PET Film	KMT	95	14	15	2020/5
	Polyester Release Film	KM2	240,000	120,000	50	2019/9
Mainland China	PVC Leather	KYD	32,400	9,000	28	2019/9
	Aluminum Laminated Foil	KM2	0	13,536	100	2020/1
	Copper clad laminate	KSH	12,000	13,200	110	2021/7
	Prepreg	KM	24,000	28,800	120	2021/7
	Glass Fabrics cloth	KM	0	102,000	100	2021/7
USA	EG	KMT	360	828	230	2020/3

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THE END