NPC — Interim / Quarterly Report 2018

Nov 19, 2018

==> picture [109 x 571] intentionally omitted <==

Nan Ya Plastics 2018 3Q Operations & Performance

Nov. 2018

==> picture [109 x 571] intentionally omitted <==

Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

==> picture [109 x 571] intentionally omitted <==

Overview

Highlights

• Market Capitalization NT$ 608 billion (Nov. 2018)

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

==> picture [112 x 110] intentionally omitted <==

----- Start of picture text -----

Sales
Revenue
----- End of picture text -----

• NT$ 306.1 billion

• (Y2017, not include Nanya Tech. Co.)

• � Sales breakdown

• -15% in plastics

• -29% in chemicals

• -36% in electronics

• -19% in polyesters

==> picture [5 x 4] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

Market Capitalization

==> picture [112 x 110] intentionally omitted <==

----- Start of picture text -----

Worldwide
Distribution
----- End of picture text -----

• Plant numbers

• -53 in Taiwan

• -41 in China

• -5 in US

Total number of Plants 99 Number of Employees 33,430

1

==> picture [109 x 571] intentionally omitted <==

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

2

==> picture [109 x 571] intentionally omitted <==

Overview History

==> picture [649 x 412] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

3

==> picture [109 x 571] intentionally omitted <==

Overview

Major Businesses

==> picture [60 x 64] intentionally omitted <==

15%

Plastics

Plastics	1	5%
PVC Sheeting, PVC Rigid	China & Others	29%
Film, PU Leather, PVC Rigid Pipe & Fittings,	USA	10%
Window & Door Frames,
Films, Engineering and PVC	Taiwan	61%
Compounds, PP Synthetic
Paper

==> picture [60 x 63] intentionally omitted <==

29%

Chemicals

	Taiwan China USA 5% 88% 7%

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

Sales breakdown in 2017 Electronics 36%

==> picture [60 x 64] intentionally omitted <==

Glass Yarn, Glass Fabrics cloth, Epoxy Resin, Copper Foil, Copper Clad Laminate, Printed Circuit Board		Taiwan China 40% 60%

==> picture [60 x 63] intentionally omitted <==

19%

Polyesters

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

4

==> picture [109 x 571] intentionally omitted <==

Financial Highlights Consolidated Revenue (IFRS)

(NT$ billion )

==> picture [36 x 19] intentionally omitted <==

==> picture [664 x 117] intentionally omitted <==

• Revenue in 2017 increased 11.2% YoY due to:

Prices of chemicals and electronic materials had risen sharply, and the revenue raised significantly

• Revenue in 2018 3Q increased 11.3% YoY due to :

Industry market conditions improved significantly, crude oil prices rise, pushing the price of finished goods also raised up

5

==> picture [109 x 571] intentionally omitted <==

Financial Highlights Pre-tax Income

(NT$ billion )

==> picture [36 x 19] intentionally omitted <==

==> picture [652 x 103] intentionally omitted <==

• 16.6% YoY increase in 2017 pre-tax income due to:

• Profit from chemicals and electronic materials increased significantly

• Equity income increased NT$4.0bn YoY :

  • (1) Nanya Tech +NT$5.1bn (2) MLP -NT$0.9bn

• 2018 3Q pre-tax income increased 9.7% YoY due to ：

• Operating income increased 0.4% YoY, mainly due to sales price of polyesters increased

• Equity income increased NT$0.7bn YoY :

  • (1) Nanya Tech +NT$1.0bn (2)FPCC -NT$0.4bn

6

==> picture [109 x 571] intentionally omitted <==

Financial Highlights Revenue Breakdown

2017 Net Sales NT$ 306.1 billion

2017 Sales Breakdown by Geography

==> picture [614 x 231] intentionally omitted <==

----- Start of picture text -----

Others EU Others
2.0% 3.2%
Plastics 2.2%
Other Asia
14.6%
12.8% Mainland
Electronics China
36.2% 38.5%
America
Polyesters 13.3%
18.5%
Domestic
Chemicals
30.0%
28.7%
----- End of picture text -----

• Revenue of 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 55% of total overseas in 2017

7

==> picture [109 x 571] intentionally omitted <==

Financial Highlights Revenue Breakdown by Product Segment

2017 3Q Net Sales NT$ 77.9 billion

2018 3Q Net Sales NT$ 86.7 billion

==> picture [642 x 243] intentionally omitted <==

----- Start of picture text -----

Others Others
2.4% 2.0%
Plastics
Plastics
13.5%
14.5%
Electronics
Electronics
35.7%
37.2%
Polyesters Polyesters
17.5% 20.5%
Chemicals Chemicals
28.4% 28.3%
----- End of picture text -----

• Revenue in 2018 3Q increased 11.3% YoY

• Demand of chemicals and polyesters grow up, raw material costs increased pushing sales price raised up

8

==> picture [109 x 571] intentionally omitted <==

Financial Highlights Operating Profits Breakdown by Product Segment

==> picture [637 x 401] intentionally omitted <==

----- Start of picture text -----

Operating Profits Operating Margins
20.0%
120.0% 18.4%
17.6%
2.8% 18.0%
0.2%
100.0% 4.7%
2.4% 8.0%
11.3% 12.1% 16.0% 16.6%
14.0% 13.9%
14.0%
80.0% 36.0% 31.8%
28.0%
48.4%
34.8%
12.0%
12.9%
10.2%
60.0% 9.6%
10.0%
8.7%
8.2%
40.0% 8.0%
47.7% 51.0% 50.6%
8.1%
44.1% 7.5% 7.5% 6.0%
41.2%
6.0%
20.0%
5.3% 5.6% 5.3%
4.0%
11.1% 7.5% 9.8% 9.9% 9.1% 4.4%
0.0% 2.0%
-0.1% 2.4%
-1.7% -0.6%
1.3%
0.0%
-20.0%
3Q17 4Q17 1Q18 2Q18 3Q18
3Q17 4Q17 1Q18 2Q18 3Q18
Plastics Chemicals
Plastics Chemicals Electronics
Electronics Polyester
Polyester Others
----- End of picture text -----

9

==> picture [109 x 571] intentionally omitted <==

Business Overview Capacity Expansion Plan

Area	Product	Unit	AnnualCapacity	AnnualCapacity	AnnualCapacity	Completion Date
			current	Expansion	Increase%
Taiwan	Pepa Synthetic Paper	KMT	65	22	34	2019/3
	Copper Foil	KMT	36	18	50	2019/7
	PET Film	KMT	108	13	12	2020/5
	Polyester Release Film	KM2	144,000	156,000	108	2019/9
Mainland China	PVC Leather	KYD	32,400	9,000	28	2019/9
	Aluminium Laminated Foil	KM2	0	13,536	100	2020/1
	Copper clad laminate	KSH	12,000	13,200	110	2020/7
	Prepreg	KM	24,000	28,800	120	2020/7
	Glass Fabrics cloth	KM	0	102,000	100	2020/7
USA	EG	KMT	360	828	230	2019/12
	Composite PVC Door Frame	KMT	0	9	100	2018/12

10

==> picture [114 x 571] intentionally omitted <==

THE END