NPC — Investor Presentation 2018

Mar 7, 2018

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Nan Ya Plastics Year 2017 Operations & Performance

Mar. 2018

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Agenda

• Overview

• Financial Highlights

• Capacity Expansion Plan

• • Q & A

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Overview Highlights

• Member of the Formosa Plastics Group (FPG)

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

• 2017 consolidated annual revenue of NT$ 306.1 billion with 4 major businesses: sales breakdown - 15% in plastics, 29% in chemicals, 36% in electronic materials, and 19% in fibers

� Market capitalization of NT$ 627 billion(Mar. 2018) Manufacturing plant numbers: 53 in Taiwan, 41 in China, and 5 in the USA.

• Leading market positions

• World’s #1 manufacturer of secondary plastics

• World’s #2 manufacturer of copper clad laminates

• World’s #4 manufacturer of Mono ethylene glycol

• World’s #7 manufacturer of polyester

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Overview History

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Nanya BPA in
Printed
Ningbo,
Nan Ya Nanya Circuit
Polyester China
staple Nan Ya USA America Technology Board Production
1969 1979 1989 1995 1997 2015
1958 1971 1986 1996 1999 2003 2013
Incorporation Textured PCB Plastics in EG Electronic Plasticizer
First PVC sheet & CCL China Startup Production Materials in in Ningbo,
yarn Kunshan,China China
production
Production Production
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• 1958 : Company was founded, Starting production of PVC secondary plastics in Taiwan

• 1969 : Began manufacturing polyester fiber

• 1979 : Nan Ya Plastics Corp., USA established in U.S.A., starting production of plastic products

• 1986 : Entered electronics business, production of PCB & CCL

• 1989 : Nan Ya Plastics Corp., America established in U.S.A, production of polyester products

• 1995 : Invested Nanya Technology Corp. starting production of DRAM

• 1996 - 1998 : Starting production of plastics Products in Xiamen, Guangzhou, Nantong, China

• 1997 : Subsidiary Nanya Printed Circuit Board Corp. established

• 1999 : Starting production of EG

• 2003 : Starting production of Electronic Materials in Kunshan, China

• 2013 - 2015 : Starting production of Plasticizer & BPA in Ningbo, China

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Financial Highlights Consolidated Revenue (IFRS)

(NT$ billion )

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• Revenue in 2017 increased 11.2% YoY due to:

Demand for chemicals and electronic materials increased, the sales volume and price raised up

• Revenue in 2017 4Q increased 12.1% YoY due to :

• Chemicals prices improved driven by the rising of oil price, electronic materials prices remain high

• *Unaudited number

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Financial Highlights Pre-tax Income

(NT$ billion)

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• 16.5% YoY increase in 2017 pre-tax income due to:

• Profit from chemicals and electronic materials increased significantly

• Equity income increased by NT$3.9bn YoY :

  • (1) Nanya Tech +NT$5.0bn

    • (2) MLP -NT$0.9bn

• 2017 Q4 pre-tax income decreased by 29.4% YoY due to ：

• Core business income increased by 105.4% YoY, no disposal of shares in 2017

• Equity income decreased by NT$0.2bn YoY :

  • (1) MLP -NT$0.2bn

*Unaudited number

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Financial Highlights Revenue Breakdown

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2017 Net Sales
NT$ 306.1 billion
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2017 Sales Breakdown* by Geography

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Others Others EU
2.0% 3.2% 2.2%
Other Asia
Plastics
12.8% Mainland
14.6%
Electronics China
36.2% 38.5%
Overseas
America
70.0%
13.3%
Polyester
18.5%
Domestic
30.0%
Chemicals
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

*Unaudited number

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Financial Highlights Revenue Breakdown by Product Segment

2016 4Q Net Sales NT$ 72.7 billion

2017 4Q Net Sales NT$ 81.5 billion*

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Others Others
2.0% 1.8%
Plastics
Plastics
13.8%
16.3% Electronics Electronics
35.2% 36.8%
Polyester
18.9%
Polyester
18.7%
Chemicals
Chemicals
27.8%
28.8%
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� Revenue in 2017 4Q increased 12.1% YoY

• Prices of chemicals and electronics materials increased mainly from oil price and feedstock of electronic materials price raised up

*Unaudited number

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Financial Highlights Operating Profits Breakdown by Product Segment

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Operating Profits Operating Margins
18.0% 17.0%
120.0% 16.6%
4.5% 0.4% 2.8% 0.0% 16.0%
100.0% 4.6% 4.0% 2.4% 4.1% 13.9% 13.9%
14.0%
40.9%
11.9%
80.0% 36.0% 12.0% 12.8%
42.2%
47.4%
54.5%
9.6%
10.0%
60.0%
8.6% 8.7%
8.3%
7.5%
8.0%
44.1%
40.0% 6.6%
47.7% 6.1%
41.6% 7.0%
26.4% 40.1% 6.0%
6.3%
20.0%
4.0%
2.8%
19.9%
11.3% 16.1% 11.1% 8.4% 1.7% 2.2%
1.3% 1.3%
0.0% 2.0%
-1.0%
-9.5%
0.0%
-20.0%
4Q16 1Q17 2Q17 3Q17 4Q17
4Q16 1Q17 2Q17 3Q17 4Q17
Plastics Chemicals
Plastics Chemicals Electronics
Electronics Polyester
Polyester Others
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*Unaudited

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Business Overview Ca acit Ex ansion Plan p y p

Main Products	Capacity	Expansion	Completion	Capacity
	(p.a.)	(p.a.)	Date	Increase
				(%)
PVC Leather
Nantong	32,400 KYD	7,200 KYD	08/2018	22%
Aluminium Laminated Foil
Nantong	－	12,456 KM2	03/2019	100%
EG
USA	360,000 MT	828,000 MT	12/2019	230%
Composite PVC Door Frame
USA	－	8,600 MT	12/2018	100%
Pepa Synthetic Paper
Taiwan	65,000 MT	22,000 MT	10/2018	34%
Copper Foil
Taiwan	33,600 MT	18,000 MT	07/2019	54%
Polyester Release Film
Taiwan	144,000 KM2	156,000 KM2	05/2019	108%

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THE END