NPC — Interim / Quarterly Report 2020

Apr 28, 2020

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Nan Ya Plastics Year 2020 1Q Operations & Performance

Apr. 2020

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Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

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Overview Highlights

• Market Capitalization NT$ 463.2 billion (Apr. 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)

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Overview

Leading market positions for capacity

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1 2 3 4
 Plastics processing  Copper foil  Copper clad  EG
 Epoxy resin laminate
 Glass yarn
 Glass fabrics
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※ 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

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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%

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25%

Chemicals

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

Sales breakdown in 2019 Electronics 39%

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

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19%

Polyesters

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

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Financial Highlights Consolidated Revenue (IFRS)

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(NT$ billion )
333.1
400
286.3
300
200
70.9
65.6
100
0
2018 2019 1Q19 1Q20
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 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 1Q decreased 7.6% YoY due to :

Driven from the falling of crude oil price and a following drop of product price, the overall revenue declined.

*Non-audited number

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Financial Highlights Pre-tax Income

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(NT$ billion )
61.53
80
60
26.69
40
5.83
2.06
20
0
2018 2019 1Q19 1Q20
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 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 1Q pre-tax income decreased 64.7% YoY due to ：

1. Operating profit increased NT$0.6bn mainly due to electronic material products benefited from 5G construction, leading a significant increase in profit.

2. Equity income decreased NT$4.6bn YoY :

3. (1) FPCC -NT$4.4bn (2) Nanya Tech -NT$0.5bn

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*Non-audited number

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Financial Highlights Revenue Breakdown

2019 Sales Breakdown by Geography

2019 Net Sales NT$ 286.3 billion

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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%
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• 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.

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Financial Highlights Revenue Breakdown by Product Segment

2019 1Q Net Sales NT$ 70.9 billion

2020 1Q Net Sales NT$ 65.6 billion*

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Others
Others 1.5%
1.8%
Plastics Plastics
14.5% 14.1%
Electronics
34.8%
Electronics
39.9%
Polyesters
Polyesters 18.6%
20.1%
Chemicals Chemicals
28.8% 25.9%
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• Driven from the falling of crude oil price and a following drop of product price, the overall revenue declined, the revenue in 2020 1Q decreased 7.6% YoY.

• The proportion of plastic and polyester products decreased slightly, the proportion of electronic products increased, but on the contrary, the proportion of chemical products decreased more, showing the changes in industry trends.

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*Non-audited number

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Financial Highlights Operating Profits Breakdown by Product Segment

Operating Margins

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Operating Profits Operating Margins
10.0%
200.0% 8.5%
7.9%
7.6%
8.0%
10.0%
6.4%
150.0% 5.6%
9.8% 6.0% 4.9% 6.7%
33.5% 10.6% 6.2% 6.2%
15.8%
16.5% 4.0% 3.5% 3.2%
36.0% 21.5%
100.0% 2.5%
19.8%
12.3% 2.4%
25.2% 22.4% 9.0% 2.0%
2.4%
1.9% 2.2%
14.8%
50.0% 95.4%
17.2% 76.3% 70.8% 0.0%
59.6% -1.8%
27.0%
-2.0%
0.0% -17.4% -19.9% -10.3% -2.3%
-55.4% -4.0%
-3.8%
-0.6%
-50.0%
-6.0%
-6.3%
-8.0%
-100.0%
1Q19 2Q19 3Q19 4Q19 1Q20
1Q19 2Q19 3Q19 4Q19 1Q20
Electronics Chemicals
Electronics Chemicals Polyesters
Polyesters Plastics
Plastics Others
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*Non-audited number

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Business Overview Capacity Expansion Plan

Area	Product	Unit	Annual Capacity	Annual Capacity	Annual Capacity	Completion Date
			**Current **	**Expansion **	Increase%
Taiwan	PPSynthetic Paper	KMT	65	22	34	2020/6
	Long Fiber-Reinforced Thermoplastics	KMT	0	5	100	2021/1
	Copper Foil	KMT	34	18	53	2021/1
	Polyester Film	KMT	94	13	14	2020/12
	Polyester Release Film (4thcoatingmachine )	KM2	240,000	120,000	50	2020/6
	Polyester Release Film (5th set)	KM2	240,000	123,600	52	2021/1
Mainland China	PVC Leather	KYD	34,200	9,000	26	2020/12
	Aluminum LaminatedFoil	KM2	0	13,536	100	2020/6
	PVCDecorativeFilm	KYD	24,000	19,200	80	2021/9
	CopperCladLaminate	KSH	12,000	13,200	110	2021/12
	Prepreg	KM	24,000	28,800	120	2021/12
	GlassFabrics	KM	0	102,000	100	2021/9
	PCB	KSF	17,304	271	2	2021/2
	BPA	KMT	130	130	100	2021/10
USA	FlexiblePVC Sheeting	KMT	0	14	100	2021/11
	EG	KMT	360	828	230	2020/7

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THE END

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