NPC — Interim / Quarterly Report 2020

Dec 10, 2020

==> picture [108 x 570] intentionally omitted <==

Nan Ya Plastics Year 2020 3Q Operations & Performance

Dec. 2020

==> picture [108 x 570] intentionally omitted <==

Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

==> picture [108 x 570] intentionally omitted <==

Overview Highlights

 Market Capitalization NT$ 509.2billion (Nov. 2020)

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

• NT$ 286.3 billion

• (Y2019, not include Nanya Tech. Co.)

• Sales breakdown

Sales

Revenue

• -15% in plastics

• -25% in chemicals

• -39% in electronics

• -19% in polyesters

Market Capitalization

• Total number of

• Plants 102

Worldwide

• -59 in Taiwan

Distribution

• -36 in China

• -7 in US

• Number of Employees 31,899

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

1

==> picture [108 x 570] intentionally omitted <==

Overview

Leading market positions for capacity

==> picture [654 x 399] intentionally omitted <==

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

1 2 3 4
 Plastics processing  Copper foil  Copper clad  EG
 Epoxy resin  PA laminate  BPA
 Glass yarn
 Glass fabrics
----- End of picture text -----

※Plasticizer products ranked 5[th] Polyester products ranked 11[th]

2

==> picture [108 x 570] intentionally omitted <==

Overview History

==> picture [123 x 81] intentionally omitted <==

==> picture [131 x 84] intentionally omitted <==

==> picture [127 x 89] intentionally omitted <==

==> picture [125 x 87] intentionally omitted <==

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

==> picture [115 x 84] intentionally omitted <==

==> picture [121 x 84] intentionally omitted <==

==> picture [125 x 84] intentionally omitted <==

3

==> picture [108 x 570] intentionally omitted <==

Overview Major Businesses

==> picture [59 x 63] intentionally omitted <==

15%

Plastics

PVC Sheeting, PVC Rigid Film, PU Leather, PVC Rigid Pipe & Fittings, Window & Door Frames, Films, Engineering and PVC Compounds, PP Synthetic Paper Taiwan China & Others USA 11% 60% 29%	PVC Sheeting, PVC Rigid Film, PU Leather, PVC Rigid Pipe & Fittings, Window & Door Frames, Films, Engineering and PVC Compounds, PP Synthetic Paper Taiwan China & Others USA 11% 60% 29%	PVC Sheeting, PVC Rigid Film, PU Leather, PVC Rigid Pipe & Fittings, Window & Door Frames, Films, Engineering and PVC Compounds, PP Synthetic Paper Taiwan China & Others USA 11% 60% 29%

==> picture [59 x 63] intentionally omitted <==

25%

Chemicals

EG, BPA, 1,4BG, Plasticizer, PA, 2EH, INA, MA		Taiwan China USA 5% 85% 10%

Sales breakdown in 2019 Electronics 39%

==> picture [59 x 63] intentionally omitted <==

Glass Yarn, Glass Fabrics, Epoxy Resin, Copper Foil, China 58% Copper Clad Laminate, Printed Circuit Board Taiwan 42%

==> picture [59 x 63] intentionally omitted <==

19%

Polyesters

China & Others 5% Polyester Staple Fiber, PET Resin, Filament, USA 49% PET Film Taiwan 46%

4

==> picture [108 x 570] intentionally omitted <==

Financial Highlights Consolidated Revenue (IFRS)

==> picture [656 x 237] intentionally omitted <==

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

(NT$ billion )
333.1
400
286.3
300
200
71.9 67.8
100
0
2018 2019 3Q19 3Q20
----- End of picture text -----

 Revenue in 2019 decreased 14.0% YoY due to:

Under the circumstance that the market supply increased or remained steady, the product price facing strict competition, causing the revenue to decrease. Revenue of chemical products like EG and BPA dropped the most, and polyesters also had a decline.

 Revenue in 2020 3Q decreased 5.7% YoY due to :

Driven by the increasing demand of 5G telecom service and its related industries and remote network connection, the revenue of electronic material products increased. However, the revenue of polyester, chemicals and plastic products dropped due to the decline of oil and raw materials prices, causing the overall revenue slightly decreased.

5

==> picture [108 x 570] intentionally omitted <==

Financial Highlights Pre-tax Income

==> picture [655 x 210] intentionally omitted <==

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

(NT$ billion )
61.53
80
60
26.69
40
11.78
8.89
20
0
2018 2019 3Q19 3Q20
----- End of picture text -----

 2019 pre-tax income decreased 56.6% YoY due to ：

1. The decrease came mainly from chemical product (EG and BPA the most). Electronic materials, polyester products and plastics products declined as well.

2. Equity income decreased NT$14.3bn YoY :

3. (1) FPCC -NT$5.4bn (2) Nanya Tech -NT$8.7bn

 2020 3Q pre-tax income increased 32.5% YoY due to ：

1. Operating profit increased NT$2.5bn mainly due to electronic material products benefited from 5G construction, leading a significant increase in profit.

2. Equity income decreased NT$1.4bn YoY :

3. (1) FPCC +NT$0.8bn (2) Nanya Tech -NT$0.2bn (3) MPC +NT$0.5bn

6

==> picture [108 x 570] intentionally omitted <==

Financial Highlights Revenue Breakdown

2019 Sales Breakdown by Geography

2019 Net Sales NT$ 286.3 billion

==> picture [628 x 237] intentionally omitted <==

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

Others 1.5%
Others 3.7%
Plastics EU 2.2%
14.9%
Other Aisa
13.3%
China
Electronics 39.0%
39.2%
Polyesters
America
19.3%
13.0%
Chemicals Domestic
25.2% 28.8%
----- End of picture text -----

• Under the circumstance that the market supply increased or remained steady, the product price facing strict competition, causing the revenue to decrease. Revenue of chemical products dropped the most, and polyesters also had a decline.

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

• Mainland China remains the most important market, accounting for 55% of total overseas in 2019.

7

==> picture [108 x 570] intentionally omitted <==

Financial Highlights Revenue Breakdown by Product Segment

==> picture [659 x 314] intentionally omitted <==

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

2019 3Q Net Sales 2020 3Q Net Sales
NT$ 71.9 billion NT$ 67.8 billion
Others
Others 1.7%
1.3%
Plastics
Plastics
14.8%
15.5%
Electronics
41.1%
Electronics
Polyesters 45.6%
Polyesters
16.2%
18.7%
Chemicals
Chemicals
21.0%
24.1%
----- End of picture text -----

 Driven by the increasing demand of 5G telecom service and its related industries and remote network connection, the revenue of electronic material products went up. However, the revenue of polyester, chemicals and plastic products dropped due to the decline of oil and raw materials prices, causing the overall revenue slightly decreased.

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

8

==> picture [108 x 570] intentionally omitted <==

Financial Highlights Operating Profits Breakdown by Product Segment

Operating Margins

Operating Profits -100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.0% 3Q19 4Q19 1Q20 2Q20 3Q20 95.4% 76.3% 70.3% 86.3% 66.8% -55.4% -19.9% -10.5% -12.0% -7.6% 16.5% 12.3% 9.2% -3.8% 8.3% 33.5% 21.5% 20.1% 23.6% 22.0% 10.0% 9.8% 10.9% 6.0% 10.5% Electronics Chemicals Polyesters Plastics Others -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%				Operating Margins 8.5% 7.7% 10.5% 9.7% -3.8% -1.8% -2.8% -2.4% 3.2% 2.2% -1.5% 3.4% 6.7% 6.2% 8.2% 9.4% 4Q19 1Q20 2Q20 3Q20 Electronics Chemicals Polyesters Plastics
		6.4% 2.4% 6.2%		8.5% 7.7% 10.5% 9.7% 3.2% 2.2% 3.4% 6.7% 6.2% 8.2% 9.4%
			4%	3.2% 2.2%
		-6.3%	.3%	-3.8% -1.8% -2.8% -2 -1.5%
	3Q19

9

==> picture [108 x 570] intentionally omitted <==

Business Overview Capacity Expansion Plan

Area	Product	Unit	Annual Capacity	Annual Capacity	Annual Capacity	Completion Date
			**Current **	**Expansion **	Increase%
Taiwan	PPSyntheticPaper	KMT	65	22	34	2021/4
	Long Fiber-Reinforced Thermoplastics	KMT	0	5	100	2021/1
	Copper Foil	KMT	34	18	53	2021/1
	Polyester Film	KMT	94	14	15	2021/4
	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		0	26,664	100	2021/6
	PVCDecorativeFilm	KM2	24,000	19,200	80	2021/9
	CopperCladLaminate	KYD	12,000	13,200	110	2021/12
	Prepreg	KSH	24,000	28,800	120	2021/12
	GlassFabrics	KM	0	117,000	100	2021/9
	PCB	KM	17,304	306	2	2021/2
	BPA	KSF	186	170	91	2021/10
USA	FlexiblePVC Sheeting	KMT	0	14	100	2021/11
	EG	KMT	360	828	230	2020/12

10

THE END

==> picture [86 x 124] intentionally omitted <==