Nan Ya Plastics 2017 1H Operations & Performance Aug. 2017
Agenda Overview Financial Highlights Capacity Expansion Plan Q & A
Overview Highlights Member of the Formosa Plastics Group (FPG) The 8th largest private company in Taiwan in terms of market capitalization 2016 consolidated annual revenue of NT$ 275.3 billion with 4 major businesses: sales breakdown - 17% in plastics, 26% in chemicals, 35% in electronic materials, and 19% in fibers Market capitalization of NT$ 591 billion(aug. 2017) Manufacturing plant numbers: 49 in Taiwan, 42 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 #6 manufacturer of polyester 1
Overview History Polyester staple Nan Ya USA Nan Ya America Nanya Printed Nanya Circuit Technology Board BPA in Ningbo, China Production 1969 1979 1989 1995 1997 1958 1971 1986 1996 1999 2003 2013 2015 Incorporation First PVC sheet production Textured yarn PCB & CCL Plastics in EG China Startup Production Electronic Materials in Kunshan,China Production Plasticizer in Ningbo, China Production 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 2
Financial Highlights Consolidated Revenue (IFRS) (NT$ billion ) Revenue in 2016 decreased 8.2% YoY due to: Sales price of chemicals and polyesters fell, mainly affected by global oil average price dropped Revenue in 2017 1H increased 9.8% YoY due to : Electronic materials increased demand, and chemicals products prices improved driven by the rising of oil price 3
Financial Highlights Pre-tax Income (NT$ billion) 23.4% YoY increase in 2016 pre-tax income due to: 1. Sales volume increase of electronics, gain on disposal of investment shares 2. Equity income increased by NT$8.0bn YoY : (1) FPCC +NT$6.5bn (2) Nanya Tech +NT$1.5bn 2017 1H pre-tax income increased by 47.1% YoY due to: 1. Core business income increased by 62.3% YoY mainly from higher prices of chemicals and electronics 2. Equity income increased by NT$0.8bn YoY : (1) Nanya Tech +NT$2.5bn (2) MLP -NT$0.5bn (3) FPCC -NT$0.4bn (4) FIC -NT$0.3bn 4
Financial Highlights Revenue Breakdown 2016 Net Sales NT$ 275.3 billion 2016 Sales Breakdown by Geography Overseas 71.4% Mainland China 37.9% Domestic 28.6% America 13.6% Others 3.8% EU 2.3% Other Asia 13.8% Revenue of chemicals decreased 12% YoY in 2016 due to sales price fell affected by global oil average price dropped 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 53% of total overseas in 2016 5
Financial Highlights Revenue Breakdown by Product Segment 2016 1H Net Sales NT$ 133.7 billion 2017 1H Net Sales NT$ 146.8 billion Revenue in 2017 1H increased 9.8% YoY Prices of chemicals and electronics increased mainly from oil price raised up and increased demand for electronic products Revenue of others decreased due to engineering services in Vietnam have been completed 6
Financial Highlights Operating Profits Breakdown by Product Segment Operating Profits Operating Margins 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% 33.9% 14.1% 4.5% 0.4% 4.6% 4.0% 40.9% 23.1% 12.1% 42.2% 54.5% 11.6% 22.2% 8.2% 44.1% 41.6% 26.4% 43.0% 46.7% 19.9% 11.3% 16.1% -14.9% -1.0% -9.5% 2Q16 3Q16 4Q16 1Q17 2Q17 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 17.0% 12.3% 13.9% 9.7% 11.9% 8.6% 8.7% 8.3% 6.6% 6.0% 6.3% 7.0% 1.8% 2.2% 2.8% 1.6% -2.0% 1.3% 1.7% 2Q16 3Q16 4Q16 1Q17 2Q17 Plastics Chemicals Electronics Polyester Others Plastics Electronics Chemicals Polyester 7
Business Overview Capacity Expansion Plan 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 KM 2 03/2019 100% EG USA 360,000 MT 828,000 MT 12/2019 230% Composite PVC Door Frame USA - 4,300 MT 02/2018 100% Pepa Synthetic Paper Taiwan 65,000 MT 22,000 MT 06/2018 34% Copper Foil Taiwan 90,000 MT 18,000 MT 06/2019 20% 8
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