NPC — Interim / Quarterly Report 2018

Sep 10, 2018

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Nan Ya Plastics 2018 1H Operations & Performance

Sept. 2018

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Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

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Overview

Highlights

• Market Capitalization NT$ 662 billion (Sept. 2018)

• The 7th largest company in Taiwan in terms of market capitalization

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Sales
Revenue
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• NT$ 306.1 billion

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

• � Sales breakdown

• -15% in plastics

• -29% in chemicals

• -36% in electronics

• -19% in polyesters

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Market Capitalization

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Worldwide
Distribution
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• Plant numbers

• -53 in Taiwan

• -41 in China

• -5 in US

Total number of Plants 99 Number of Employees 33,430

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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

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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

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29%

Chemicals

	Taiwan China USA 5% 88% 7%

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

Sales breakdown in 2017 Electronics 36%

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

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19%

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)

(NT$ billion )

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• 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 1H increased 14.9% YoY due to :

Industry is getting better, demand of products increased significantly, crude oil prices rise, leading to sales volume and price also raised up Revenue in the first half of 2018 achieve highest record

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Financial Highlights Pre-tax Income

(NT$ billion )

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

• Profit from chemicals and electronic materials increased significantly

• Equity income increased by NT$4.0bn YoY :

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

• 2018 1H pre-tax income increased by 47.0% YoY due to ：

• Core business income increased by 72.5% YoY, mainly due to sales volume and price increased of chemicals

• Equity income increased by NT$4.8bn YoY :

  • (1) Nanya Tech +NT$2.3bn (2)FPCC +NT$2.1bn

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Financial Highlights Revenue Breakdown

2017 Net Sales NT$ 306.1 billion

2017 Sales Breakdown by Geography

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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%
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• 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

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Financial Highlights Revenue Breakdown by Product Segment

2017 1H Net Sales NT$ 146.8 billion

2018 1H Net Sales NT$ 168.7 billion

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Others Others
2.0% 1.7%
Plastics Plastics
15.1% 13.5%
Electronics
Electronics 34.7%
35.4%
Polyseters
Polyseters
20.3%
18.7%
Chemicals Chemicals
28.8% 29.9%
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• Revenue in 2018 1H increased 14.9% YoY

• Demand of chemicals and polyesters increased, the sales volume and price raised up, market of electronic materials is thriving.

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Financial Highlights Operating Profits Breakdown by Product Segment

Operating Margins

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Operating Profits Operating Margins
20.0%
120.0% 18.4%
17.6%
18.0%
2.8% 0.2% 16.6%
100.0% 4.0% 4.7%
2.4% 8.0%
11.3% 16.0%
14.0%
14.0%
80.0% 36.0% 31.8%
48.4% 28.0% 11.9%
54.5%
12.0%
12.9%
60.0% 9.6%
10.2%
10.0%
8.3% 8.1% 8.2%
7.5%
40.0% 8.0%
47.7% 51.0% 50.6%
7.5%
26.4% 41.2%
6.0% 7.0% 5.3%
20.0%
5.6%
4.0%
16.1%
11.1% 7.5% 9.8% 9.9% 4.4%
0.0% 2.0%
-0.6%
2.4%
-1.0% -1.7%
1.7% 1.3%
0.0%
-20.0%
2Q17 3Q17 4Q17 1Q18 2Q18
2Q17 3Q17 4Q17 1Q18 2Q18
Plastics Chemicals
Plastics Chemicals Electronics
Electronics Polyester
Polyester Others
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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	2020/2
	Polyester Release Film	KM2	144,000	156,000	108	2019/6
Mainland China	PVC Leather	KYD	32,400	9,000	28	2019/11
	Aluminium Laminated Foil	KM2	0	13,536	100	2019/6
	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

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THE END