NPC — Interim / Quarterly Report 2019

Sep 11, 2019

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Nan Ya Plastics 2019 1H Operations & Performance

September 2019

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Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

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Overview Highlights

• Market Capitalization NT$ 533.7 billion (Sept. 2019)

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

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Sales
Revenue
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• NT$ 333.1 billion

• (Y2018, 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 100

  • -53 in Taiwan

  • -41 in China

  • -5 in US

  • -1 in Indonesia

• Number of Employees 34,536

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Overview Leading market positions for capacity

1 2 3 4 � Copper foil � Copper clad � EG laminates

• Plastics processing � Copper foil

• Epoxy resin

• Glass yarn

• Glass fabrics

※ Polyester products ranked 8[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 1996 � Kunshan
� 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

China 9% USA 2% Taiwan 89%

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

Sales breakdown in 2018 Electronics 35%

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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, China & Others PET Resin, Filament, USA PET Film Taiwan

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Financial Highlights Consolidated Revenue (IFRS)

(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 2019 1H decreased 15.4% YoY due to :

Economic growth slows down, the market consumption confidence is insufficient and the revenue of chemical, electronic material and polyester products is not as good as last year.

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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

• 2019 1H pre-tax income decreased 63.8% YoY due to ：

• Operating income decreased 74.4% YoY, consumption demand shrank and profit of chemical and electronic material products decreased

• Equity income decreased NT$9.9bn YoY :

  • (1) FPCC -NT$6.1bn (2) Nanya Tech -NT$3.6bn

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Financial Highlights Revenue Breakdown

2018 Net Sales NT$ 333.1 billion

2018 Sales Breakdown by Geography

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• Revenue of polyesters, chemicals and electronic materials increased due to the strong demand, the sales volume and price raised up

• Revenue in the next few years is still mainly driven by chemicals and electronic materials

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

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Financial Highlights Revenue Breakdown by Product Segment

2018 1H Net Sales NT$ 168.7 billion

2019 1H Net Sales NT$ 142.8 billion

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• Revenue in 2019 1H decreased 15.4% YoY

• Economic growth slows down, the market consumption confidence is insufficient and the revenue of chemical, electronic material and polyester products is not as good as last year.

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Financial Highlights Operating Profits Breakdown by Product Segment

Operating Margins

Operating Profits

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Business Overview Capacity Expansion Plan

Area	Product	Unit	Annual Capacity	Annual Capacity	Annual Capacity	Completion Date
			**Current **	**Expansion **	Increase%
Taiwan	PP Synthetic Paper	KMT	65	22	34	2019/9
	Copper Foil	KMT	36	18	50	2020/3
	Polyester Film	KMT	94	14	15	2020/5
	Polyester Release Film (4thcoating machine )	KM2	240,000	120,000	50	2019/9
	Polyester Release Film (5th set)	KM2	240,000	123,600	52	2020/11
Mainland China	PVC Leather	KYD	32,400	9,000	28	2019/11
	Aluminum Laminated Foil	KM2	0	13,536	100	2020/6
	PVC Decorative Film	KYD	19,200	12,000	63	2021/10
	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
	BPA	KMT	130	130	100	2021/11
USA	EG	KMT	360	828	230	2020/3

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THE END