UPC — Investor Presentation 2022

Nov 22, 2022

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UPC Technology Corp.

Investor Conference

22 November, 2022

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2022 UPC Technology Corp.
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Agenda

1 Company Profile and Future Development 2 Financial Performance 3 Q & A

Copyright © 2022 UPC Technology Corp.

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Group
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•
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Chairman
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Matthew F.C. Miau
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•
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of Employees
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1918
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2022)
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Revenue
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•
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NT$81.9
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US$2.9
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)
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•
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2022 YTD Sep.：NT$56.3 Billion (US$1.9 Billion)

Taiwan Stock Exchange listed (Y1989): code 1313

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We are committed to providing the most professional and satisfying products and services to our customers.

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2022 UPC Technology Corp.
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Panjin, Liaoning Zhenjiang, Jiangsu Taizhou, Jiangsu Nanchong, Sichuan Taipei(HQ) Zhongshan, Guangdong Zhuhai, Guangdong UPCHK Linyuan, Kaohsiung Bangkok, Thailand Ho Chi Minh, Vietnam Kuantan, Malaysia Manufacturing & Logistics Center Marketing center

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Business
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Vertical + Horizontal Integration

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Comprehensive and JIT Logistics Service
Tanks & Warehouse Storage Road Transportation Chemical Jetty
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World’s largest PA and Plasticizers manufacturer

2021 Global PZ capacity 17,500 KTPA

2021 Global PA capacity 7,200 KTPA

UPC plasticizer capacity UPC PA capacity is 2,790 KTPA is 668 KTPA (global 16%) (global 9%)

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2022 UPC Technology Corp.
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Global plasticizer market is about 9,717 KTPA in 2021
UPC ’ s sales volume is 1,229 KTPA with a market share of 12.7%
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Global plasticizer market demand by region (KTPA)

UPC’s global market share

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CIS
UPC
203 KTPA
2.1% 12.7%
Europe
N. America
1175 KTPA China
1025 KTPA JP/KR
12%
5149 KTPA
585 KTPA
10.5%
53%
6%
M.East Taiwan
Others
185 KTPA S.Asia 99 KTPA
1%
1.9%
461 KTPA
87.3%
4.7%
Africa SEA
Latin 142 KTPA 385 KTPA
America 4%
1.5%
Oceania
296 KTPA
3% 14 KTPA
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2022 UPC Technology Corp.
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Total Production Capacity will reach 4,873 KTPA by end 2023
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Expansion Projects UPC capacity breakdown by products
(unit : KTPA) (unit : KTPA)
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Expansion Projects (unit : KTPA)	Expansion Projects (unit : KTPA)	Expansion Projects (unit : KTPA)	Expansion Projects (unit : KTPA)	Expansion Projects (unit : KTPA)
Site	product	Expansion capacity	Start - up	(**)
Taiwan	DINP	**36 ***	2022/6
Zhuhai	DOTP	**145 ***	2022/11
Panjin	DOTP	**145 ***	2021/12
	DOTP	**145 ***	2022/10
	PA	72 (steam 403KTPA)	2023/7
	MA	50 (steam 425KTPA)	2023/3
Taizhou	DOTP	**145 ***	2023/7

*** converted to DEHP capacity**

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2022 UPC Technology Corp.
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** others : FA, UPR, POLYOL

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YTD Sep.
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-
UPC Sales Volume : 1,360 KTPA
Revenue Breakdown by Products Sales Volume Breakdown by Region
Logistics
Speciality
3%
Anhydride 3%
9% JP/KR
Europe China
1.3 %
PVC
0.02 % 87.4 %
America
15%
1.2 %
產品與服務
Plasticizer M. East SEA & Taiwan
營收占比(%) 2.9 %
& Africa S.Asia
70%
0.7 % 6.2 %
Oceania
0.2 %
7
Copyright © 2022 UPC Technology Corp.
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towards
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2022 UPC Technology Corp.
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Security
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Maintenance
Management
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Marketing
& Logistics
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Big data analytics

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& Asset
Procurement
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&
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•
共創永續未來
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聯成化科法人說明會© 2022 UPC Technology Corp. Copyright © 2022 UPC Technology Corp.

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-
Continuously developing green & eco friendly Plasticizers
CO based
2
R & D project
-
Bio based
(bio & biodegradable)
Hydrogenated
-
Non Vegetable oil Polymeric
Phthalates • ESBO • UN9430
• DINCH (UN899) • DOS • UN9470
•
UN9138
HMW •
UN9375
• 、
Phthalates Terephthalates (DOTP DINTP)
• 、 、
Adipate (DOA DINA DPHA)
• 、
Trimellitate (TOTM TINTM)
•
DINP • 、 、 、
LMW Linear (DnDP 911P 810TM TNOTM)
•
DPHP
•
Phthalates Polymeric (UN600 series)
•
DEHP
•
DBP
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Copyright © 2022 UPC Technology Corp.

1,400

1,200 1,000

800

600

400

200

(200)

(400)

(600)

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0) 0) 0) 0) 0 0 0 0 0 0 0 0	UPC Carbon Reduction 845 595 -69 -25 -645 -494 2021 2022/1~9 UPC CARBON EMISSION & REDUCTION Carbon Reduction other than Scope 1+ 2 Carbon Reduction of Scope 1+ 2 Carbon Emission of Scope 1+ 2 unit : 1000 MT-CO2e	(unit : 1000 MT-CO2e) 2021 2022/1~9 Carbon emission of Scope 1+ 2 845 595 Carbon reduction of Scope 1+ 2 69 25 • PA/MA Steam to TG (power) 33 4 • Improve Process Efficiency 29 14 • Recovery PA H/L as fuel 3 2 • Recovery waste alcohol as fuel 2 3 • Recovery PA waste water to make FA 2 3 Carbon reduction other than Scope 1+ 2 645 494 • PA/MA Steam for process & heating 553 416 • PA/MA Steam sold to customers 92 78 • Pallet & FIBC recycle . reuse 0.3 0.1 Performance	(unit : 1000 MT-CO2e) 2021 2022/1~9 Carbon emission of Scope 1+ 2 845 595 Carbon reduction of Scope 1+ 2 69 25 • PA/MA Steam to TG (power) 33 4 • Improve Process Efficiency 29 14 • Recovery PA H/L as fuel 3 2 • Recovery waste alcohol as fuel 2 3 • Recovery PA waste water to make FA 2 3 Carbon reduction other than Scope 1+ 2 645 494 • PA/MA Steam for process & heating 553 416 • PA/MA Steam sold to customers 92 78 • Pallet & FIBC recycle . reuse 0.3 0.1 Performance	(unit : 1000 MT-CO2e) 2021 2022/1~9 Carbon emission of Scope 1+ 2 845 595 Carbon reduction of Scope 1+ 2 69 25 • PA/MA Steam to TG (power) 33 4 • Improve Process Efficiency 29 14 • Recovery PA H/L as fuel 3 2 • Recovery waste alcohol as fuel 2 3 • Recovery PA waste water to make FA 2 3 Carbon reduction other than Scope 1+ 2 645 494 • PA/MA Steam for process & heating 553 416 • PA/MA Steam sold to customers 92 78 • Pallet & FIBC recycle . reuse 0.3 0.1 Performance
		(unit : 1000 MT-CO2e)	2021	2022/1~9
		Carbon emission of Scope 1+ 2	845	595
		Carbon reduction of Scope 1+ 2	69	25
		• PA/MA Steam to TG (power)	33	4
		• Improve Process Efficiency	29	14
		• Recovery PA H/L as fuel	3	2
		• Recovery waste alcohol as fuel	2	3
		• Recovery PA waste water to make FA	2	3
		Carbon reduction other than Scope 1+ 2	645	494
		• PA/MA Steam for process & heating	553	416
		• PA/MA Steam sold to customers	92	78
		• Pallet & FIBC recycle . reuse	0.3	0.1

(800)

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Copyright ©
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~~11~~

- Solar Energy
	site	Expected solar power generation per year(MWh)	Expected carbon reduction per year (MT-CO2e)
	Taiwan	211	108
	Malaysia	500	255
	Zhongshan, Guangdong	569	290
	Zhuhai, Guangdong	1,621	825
	Taizhou, Jiangsu	2,095	1,066
	Panjin, Liaoning	670	341
	Nanchong, Sichuan	1,200	611
	TOTAL	6,866	3,495
	*** Electricity Carbon Emission Factor : 0.509kg-CO2e/kWh**

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New projects to reduce more carbon emission
-
Install ener hi h
gy efficient equipment to replace g energy consumption ones
Expected carbon
Projects reduction per year
－
(MT CO2e)
replace with two-stage &
Air compressor 1,473
inverter compressors
Cooling water replace with high-efficiency &
4,293
pump energy-saving water pumps
PA/ MA frequency conversion to
2,450
blower replace IGV
low pressure steam to replace
Raise steam
high pressure steam.
utilization There will be more high 6,812
efficiency pressure steam to generate
power (TG)
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Copyright © 2022 UPC Technology Corp.
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Circular Econom Im lementation y p

2021 2022/1~9  Recycle and reuse of waste 992,310 877,888 M[3] water (bio-treatment) (reuse rate 71%) (reuse rate 76%)  Rainwater harvesting & M[3] 26,820 69,684 utilization  Recycle the waste filter cake of plasticizer process to make PVC MT 3,826 3,428 com ound p

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Copyright © 2022 UPC Technology Corp.Copyright © 2022 UPC Technology Corp.

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2022 UPC Technology Corp.
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towards Taiwan’s goal of net-zero emissions in 2050

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F
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Development
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Continuously
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scope and scale
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position in the
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market.
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Continuously research & develop green and eco
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Towards 2050
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Emissions. Aim to become a
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2022 UPC Technology Corp.
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Financial Performance
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聯成化科法人說明會© 2022 UPC Technology Corp. Copyright © 2022 UPC Technology Corp.

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(Billion NTD)

2017~2022/Q3YTD Consolidated Revenue

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2022/Q1~Q3 Sales Revenue : 56.3 Billion NTD (YoY growth rate of -6.3%)

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2022/Q3YTD Sales Revenue Major Products Revenue & YOY Growth
Breakdown by Products (2022/Q3YTD vs 2021/Q3YTD)
(Billion NTD)
-6.4%
2022/Q3YTD
Total Revenue
56.3 Billion NTD
-8.6%
-9.3%
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Copyright © 2022 UPC Technology Corp.

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2022/Q1~Q3 Sales Volume : 1.36 million tons (YoY growth rate of -0.8%)

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2022/Q1 Q3 Sales Volume Major Products Sales Volume & YOY Growth
Breakdown by Products (2022/Q3YTD vs 2021/Q3YTD)
+5.7%
2022/Q3YTD
Sales Volume
1.36 million tons
-0.3%
-24.9%
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2017~2022/Q3YTD Net Income after Tax & EPS

Net Income after Tax (Billion NTD)

EPS (NTD)

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(%)
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2017~2022/Q3 Financial ratio：Solvency (%)

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(%)

2017~2022/Q3 Financial ratio：Financial structure (%)

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2017~2022 Capital Expenditures

(Billion NTD)

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2022/Q4
2022/Q1~Q3
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Copyright © 2022 UPC Technology Corp.

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Disclaimer

• This presentation may contain forward-looking statements that reflect the current assumptions, estimates and our own information and other sources information now available planning, based upon

• to us so far. These information including all business prospects or forward-looking statements may be affected by unknown risks, uncertainties and other factors up to change or cause actual results to differ materially.

• Meanwhile, this presentation is not intended to represent complete statement of the Company (UPC), industry or future development.

• Except as required by law, we undertakes no obligation to publicly update or revise the information contained in this presentation, whether as a result of new information, future events or otherwise.

Copyright © 2022 UPC Technology Corp.

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Commitment to a Better Tomorrow

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2022 UPC Technology Corp.
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www.upc.com.tw