NPC — Annual Report 2021

Mar 9, 2021

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Nan Ya Plastics Year 2020 Operations & Performance

Mar. 2021

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Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

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Overview Highlights

 Market Capitalization NT$ 576.6billion (Feb. 2021)

• The 9th largest company in Taiwan in terms of market capitalization

• NT$ 273.3 billion*

• (Y2020, not include Nanya Tech. Co.)

• Sales breakdown

Sales

Revenue

• -15% in plastics

• -24% in chemicals

• -44% in electronics

• -16% in polyesters

Market Capitalization

• Total number of

• Plants 102

Worldwide

• -59 in Taiwan

Distribution

• -36 in China

• -7 in US

• Number of Employees 31,740

(The number of Plants and Employees includes the consolidated financial reporting company)

• Unaudited number

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Overview

Leading market positions for capacity

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1 2 3 4
 Plastics processing  Copper foil  Copper clad  EG
 Epoxy resin  PA laminate  BPA
 Glass yarn
 Glass fabrics
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※Plasticizer products ranked 5[th] Polyester products ranked 11[th]

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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  Huizhou 1969 1986 1994  Kunshan  Ningbo

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Overview Major Businesses

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15%

Plastics

PVC Sheeting, PVC Rigid China & Others 27% Film, PU Leather, PVC USA 11% Rigid Pipe & Fittings, Window & Door Frames, Films, Engineering and PVC Taiwan 62% Compounds, PP Synthetic Paper

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24%

Chemicals

	Taiwan China USA 4% 85% 11%

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

Sales breakdown in 2020 (Unaudited number)

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Electronics 44%

Glass Yarn, Glass Fabrics, Epoxy Resin, Copper Foil, China 55% Copper Clad Laminate, Printed Circuit Board Taiwan 45%

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16%

Polyesters

China & Others 5% Polyester Staple Fiber, PET Resin, Filament, USA 51% PET Film Taiwan 44%

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Financial Highlights Consolidated Revenue (IFRS)

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(NT$ billion )
400 286.3
273.3
300
200
71.6 79.4
100
0
2019 2020 4Q19 4Q20
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* Unaudited number
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 Revenue in 2020 decreased 4.5% YoY due to:

Driven by the continuous development of 5G applications and remoted commerce during the pandemic, the operation of electronic material product had significantly improved. However, the plunge in oil prices lower the price of various products, causing the overall revenue slightly declined.

 Revenue in 2020 4Q increased 10.8% YoY due to :

Despite the spread of the epidemic, wireless communications and the online economy continue to push up the demand for electronic material product. As various countries lifting lockdowns, the demand for various products increase, leading the overall revenue increase.

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Financial Highlights Pre-tax Income

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(NT$ billion )
30.45
40
26.69 14.1%
13.67
20
5.02 172.1%
0
2019 2020 4Q19 4Q20
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* Unaudited number

 2020 pre-tax income increased 14.1% YoY due to ：

1. Operating profit increased NT$11.3bn mainly due to the significant growth in profit of electronic materials product.

2. Equity income decreased NT$5.1bn YoY :

   • (1) FPCC -NT$6.8bn (2) Nanya Tech -NT$0.7bn (3) MPC +NT$1.1bn

3. 2020 4Q pre-tax income increased 172.1% YoY due to ：

4. Operating profit significantly increased by NT$7.2bn mainly due to growth in profit of chemical product

5. Equity income increased NT$1.6bn YoY :

   • (1) FPCC +NT$0.7bn (2) Nanya Tech -NT$0.1bn (3) MPC +NT$0.1bn

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Financial Highlights Revenue Breakdown

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2020 Net Sales 2020 Sales Breakdown
NT$ 273.3 billion by Geography
Others 1.5% Others 3.2%
EU 1.4%
Plastics
15.0% Other Aisa
12.1%
China
41.3%
Electronics
Polyesters 43.8% America
15.9% 11.4%
Chemicals Domestic
23.8% 30.6%

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• Unaudited number

• Driven by the continuous development of 5G applications and remoted commerce during the pandemic, the operation of electronic material product had significantly improved. However, the plunge in oil prices lower the price of various products, causing the overall revenue slightly declined.

• Revenue in the next few years is still mainly driven by chemical product and electronic materials.

• Mainland China remains the most important market, accounting for 60% of total overseas in 2020.

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Financial Highlights Revenue Breakdown by Product Segment

2019 4Q Net Sales NT$ 71.6 billion

2020 4Q Net Sales NT$ 79.4 billion*

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Others
Others 1.4%
1.4%
Plastics Plastics
14.9% 14.7%
Electronics
41.8%
Electronics
Polyesters
44.5%
Polyesters 15.1%
17.8%
Chemicals Chemicals
24.1% 24.3%
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* Unaudited number

• Despite the spread of the epidemic, wireless communications and the online economy continue to push up the demand for electronic material products. As various countries lifting lockdowns, the demand for various products increase, leading the overall revenue increase.

• The proportion of electronic products increased, while the proportion of chemical and polyester products decreased, showing the changes in industry trends.

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Financial Highlights Operating Profits Breakdown by Product Segment

Operating Margins

Operating Profits

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5.1%
20.0%
100% 10.9% 10.5%
6.0% 17.2%
9.8%
11.6%
80% 10.9% 15.0%
20.1% 23.6% 22.0%
21.5%
12.3%
8.3%
10.5%
9.2% 31.4%
60% 12.3% 9.7% 10.5%
10.0%
8.5%
7.7%
9.4% 9.7%
8.2%
40%
86.3% 6.7%
76.3% 70.3% 66.8% 5.0% 6.2% 3.4%
41.0%
20%
3.2%
2.2% -1.5%
0.0%
0%
-12.0% -7.6%
-19.9% -3.8% -1.8%
-10.5% -3.8% -2.4%
-2.8%
-5.0%
-20%
4Q19 1Q20 2Q20 3Q20 4Q20
4Q19 1Q20 2Q20 3Q20 4Q20
Electronics Chemicals
Electronics Chemicals
Polyesters Plastics Polyesters Plastics
Others
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• Unaudited number

9

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Business Overview Capacity Expansion Plan

Area	Product	Unit	Annual Capacity	Annual Capacity	Annual Capacity	Estimated Commissioning Date
			**Current **	**Expansion **	Increase%
Taiwan	PP Synthetic Paper	KMT	60	22	37	2021/4
	Plastic Pallet	KMT	17	6	35	2022/11
	Long Fiber-Reinforced Thermoplastics	KMT	0	5	100	2021/9
	Copper Foil	KMT	34	18	53	2021/3
	Polyester Film	KMT	94	14	15	2021/6
	Polyester Release Film (4thcoatingmachine)	KM2	240,000	120,000	50	2021/5
	Polyester Release Film (5th set)	KM2	240,000	123,600	52	2021/12
Mainland China	Aluminum Laminated Foil	KM2	0	26,664	100	2021/6
	PVCDecorative Film	KYD	24,000	19,200	80	2021/9
	CopperClad Laminate	KSH	12,000	13,200	110	2022/1
	Prepreg	KM	24,000	28,800	120	2022/1
	Glass Fabrics	KM	0	90,600	100	2021/9
	PCB	KSF	17,556	306	2	2021/3
	BPA	KMT	186	170	91	2021/10
USA	Flexible PVC Sheeting*	KMT	0	14	100	2021/11

• Expanded in Texas, USA

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THE END

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