NPC — Interim / Quarterly Report 2019

Jun 19, 2019

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Nan Ya Plastics Year 2019 1Q Operations & Performance

June 2019

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Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

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Overview Highlights

• Market Capitalization NT$ 617.8 billion (June 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 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

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2 3 Copper foil � Copper clad � EG laminates

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• 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% Flexible PVC Film, China & Others 30% Rigid Film, PU Synthetic USA 10% Leather, PVC Rigid Pipe & Fittings, Window & Door Frames, Films, Taiwan 60% Engineering and PVC r Compounds, PP Synthetic Pape

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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, Epoxy Resin, Copper Foil, China 60% Copper Clad Laminate, Printed Circuit Board Taiwan 40%

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Polyesters 20%

Polyester Staple Fiber, China & Others PET Resin, Filament, USA PET Film, etc. 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 2019 1Q decreased 13.7% YoY due to : Overall economic environment variables increase affecting market consumption confidence; the revenue of various 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 1Q pre-tax income decreased 61.7% YoY due to ：

• Operating income decreased 74.9% YoY, oil prices fell rapidly, consumption demand shrank and profit of chemical and electronic material products decreased

• Equity income decreased NT$3.4bn YoY :

  • (1) FPCC -NT$2.1bn (2) Nanya Tech -NT$1.1bn

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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

• 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

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2018 1Q Net Sales 2019 1Q Net Sales
NT$ 82.2 billion NT$ 70.9 billion
Others Others
1.5% 1.8%
Plastics
Plastics
13.4%
14.5%
Electronics
Electronics
34.4%
34.8%
Polyesters
20.2% Polyesters
20.1%
Chemicals
Chemicals
30.5%
28.8%
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• Revenue in 2019 1Q decreased 13.7% YoY

• China-US trade disputes and international crude oil prices fall, revenue of chemical products, electronic materials and polyester products decreased

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Financial Highlights Operating Profits Breakdown by Product Segment

Operating Profits Operating Margins

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Business Overview Capacity Expansion Plan

Area	Area	Product	Unit	AnnualCapacity	AnnualCapacity	AnnualCapacity	Completion Date
				current	**Expansion **	Increase %
Taiwan Chiayi PP Synthetic Paper KMT Hsinkang Copper Foil KMT Linkou Polyester Film KMT Shulin Polyester Release Film (4thcoating machine ) KM2	Chiayi	PP Synthetic Paper	KMT	65	22	34	2019/7
	Hsinkang	Copper Foil	KMT	36	18	50	2020/3
	Linkou	Polyester Film	KMT	95	14	15	2020/5
				240,000 120,000 50 2019/9
	Shulin	Polyester Release Film (5th and 6th set)	KM2	240,000	288,000	120	2020/6
Mainland China	Nantong	PVC Leather	KYD	32,400	9,000	28	2019/11
	Nantong	Aluminum Laminated Foil	KM2	0	13,536	100	2020/6
	Huizhou	Copper clad laminate	KSH	12,000	13,200	110	2021/7
	Huizhou	Prepreg	KM	24,000	28,800	120	2021/7
	Huizhou	Glass Fabrics	KM	0	102,000	100	2021/7
USA	Texas	EG	KMT	360	828	230	2020/3

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THE END