CTCI. Taiwan s s Leading International Engineering Firm

Transcription

1 CTCI s s Leading International Engineering Firm

2 Company Overview Industry Outlook Business Operation Financial Highlights Looking Forward 2 CTCI/ Investor Relationship

3 Who we are Company Overview s Largest Engineering, Procurement and Construction ( EPC ) Company - Over 40 years of industry experience - Involved in numerous landmark projects Offering Specialized Turn-key EPC Solutions - Primarily serving in hydrocarbon market, then diversified ourselves into power, infrastructure, and environmental industries Significant Domestic and Overseas Experiences - Established presence in Mainland, Southeast Asia, and the Middle East - Designated partner of several major internationally renowned companies One of Asia s Largest EPC Players - Total workforce of 4,200 engineers /Over 5,500 employees worldwide - Ability to bid for EPC contracts up to USD 1 billion in size - Ranked as 66th in ENR Ranking and recognized as one of few qualified main contractors in the world. 3 CTCI/ Investor Relationship

4 Company Profile Company Overview Paid-in Capital.. TWD 6,167M (USD 205.6M) Shareholders Equity... TWD 9,499M (USD 316.6M) ~as of Dec. 31, 2007 / USD:NTD=30 Shareholders Structure (April. 30, 2008) CTCI Foundation 9.75% Employee & Public 46.38% Morgan Stanley 19.57% Foreign Shareholders 43.87% 4 CTCI/ Investor Relationship

5 Business Areas Company Overview Petrochemical & Chemical Gas Processing Refinery Pharmaceutical & Biotechnology Storage & Terminal Metal Mills Brewery & Winery Power & Waste to Energy Environmental Civil & Infrastructure 5 CTCI/ Investor Relationship

6 Comprehensive Service Company Overview E P C Feasibility Study & Planning Project Management Engineering Design Procurement Fabrication Construction Commissioning & Maintenance Environmental Process Design Piping Design Civil and Structure Design Instrumentation and Control Design Electrical Design Mechanical and Equipment Design Market Survey Enquiry and Purchasing Inspection and Expediting Shipping, Delivery and Claims Permits and Banking Affairs Customs Clearance Insurance Tariffs Subcontracting Equipment Installation and Rigging Piping Fabrication & Erection Steel Structure Fabrication & Erection Electrical Installation & Wiring Instrument Installation, Piping & Wiring Civil & Building Painting & Insulation Construction Management 6 CTCI/ Investor Relationship

7 Global Network of CTCI Group Company Overview Engineering Hub Taipei 2,847 Kaohsiung 410 3,257 CTCI Arabia, KSA CTCI Overseas, Hong Kong CIMAS, Vietnam Jing Ding E&C, Beijing Shang Ding E&C, Shanghai Global Engineering Satellites JingDing E&C () 375 ShangDing E&C () 159 CTCI Thailand (Thailand) 286 CTCI, Taipei H/Q Domestic Subsidiaries CIMAS Engineering (Vietnam) 209 1,029 Total 4,286 CTCI, Qatar CTCI, Abu Dhabi CTCI (Malaysia), Malaysia CTCI, Kaohsiung CTCI (Thailand), Thailand CIPEC, The Philippines 7 CTCI/ Investor Relationship

8 Competitive Advantages Company Overview Comprehensive EPC experiences - Full Knowledge of Major Licensors and EPC Firms - Strategic Alliance with Selected Technology Providers - Significant EPC experiences in multiple geographical regions and industry sectors Cost Effective - Valuable engineering design and sound project management by competent engineers and managers - Local engineering workforce is highly cost-competitive compared to Western and Japanese peers - An International EPC Contractor with Local Facilities and Resources and good management of low cost engineering resources worldwide - Ability to source raw materials locally Long-Standing Client Relationships - Performed EPC services for numerous major domestic and international clients International Quality Standards - ISO 9001/ ISO 14001/ OHSAS certified - Substantial quality control group ensures international standards of service - Developing project management knowledge (PMP certified) - Enhancing project risk management and claim management 8 CTCI/ Investor Relationship

9 Significant Track Records (1/2) Company Overview Client Project Location Saudi Kayan (Sabic Group) EO/EG Project Saudi Arabia PTTUT Central Utility NO.1 PhaseⅠ~Ⅳ/ CUP-Ⅲ Project Thailand Bangchak Petroleum PUBLIC Quality Improvement Project Thailand PTT/HMC PDH Project Thailand PPCL Phenol/Cumene Project Thailand Shanghai LNG Shanghai LNG Terminal Project Ongoing Titan Petrochem Taiwn Power Taipei City Government Propylene /Butadiene Extraction Project Dah-Tarn Power Plant Taipei MRT Xinyi-Songshan Line Core System Project Malaysia Chinese Petroleum North LNG Receiving Terminal Project Formosa Petrochemical Lube Based Oil Project Dah-Tarn Power Plant Taipei City Government Taipei MRT Hsin-Chuang Lu-Chou Line Core System Project Dragon Steel Sintering Project Client QAPCO Thai Olefins Formosa Petrochemical Formosa Chemicals & Fiber Corp. Taipei City Government Client BASF/ Huntsman Oriental Petrochemical High Speed Rail Kaohsiung Rapid Transit Project Location Ethylene Package NO.2 Project Qatar Olefins Debottlenecking Project Thailand Olefin NO3. Project Aromatics NO.3 Project Taipei MRT Tucheng Line Power System Project Project Location MDI/TDI Project PTA Project High Speed Rail Project Kaohsiung MRT System Low Voltage Power Distribution Project 9 CTCI/ Investor Relationship

10 Significant Track Records (2/2) Company Overview Client Project Location 2005 Formosa Chemcials & Fiber Taipei City Government Kaohsiung Rapid Transit Corp. SM NO.3 Project Taipei MRT Hsin-Chuang Lu-Chou Line Core System Porject Track Work Project Client Project Location Ghaed Bassir Petrochemical ABS/SAN Project Iran Consumer Energy Campball Power Plant DeNOx Project U.S.A BASF/YPC LDPE Project BASF/YPC C1 Project CNOOC-Shell EO/EG Project Lucite MMA Project Ningbo Rayon Acrylic. Fiber MRC Acrylic Fibers Project Xianglu Petrochemical PTA Revamping Project 2004 CNOOC-Shell SECCO Liquid Incineration Project SAR Project Nantong SKT New Materials PVDC Project Petron Gas Oil Hydrotreating Project The Philippines Phu My3 Power Plant Phu My3 CCPP Project Vietnam Taichung County Government Wujih Refuse Incineration Project Formosa BP Chemicals Acetic Acid Project 10 CTCI/ Investor Relationship

11 Company Overview Industry Outlook Business Operation Financial Highlights Looking Forward 11 CTCI/ Investor Relationship

12 EPC Industry Outlook Industry Outlook High Entry Barrier Unique Technical Capability and Experiences The EPC Industry is Entering a Cyclical Upswing - Rapidly expanding in hydrocarbon/power infrastructure needs - Fueled by high oil price and under-investment in the 90s Demand for EPC Services Far Exceeds Supply i.e. Seller s Market - Limited qualified contractors and shortage of experienced EPC manpower resources - These markets should have growth by 2010 and possibly as long as 10 years Competition in International Markets Has Become Very Limited - High number of projects available in almost key end markets - Most of engineering firms are currently at or above full capacity - Japanese competitors are focusing on big-ticket LNG projects We would like to use this opportunity to gain international experience and credibility to drive faster growth 12 CTCI/ Investor Relationship

13 Global Market (1/2) Industry Outlook Global Hydrocarbon and Power Investment; (in USD Billion) Global Hydrocarbon Investment; (in USD Billion) 4, bn 125bn 135bn 40 3, , , Hydrocarbon Power Gas Refinery Petrochemical 1. Aggregate investment each Decade; Data Source: International Energy Agency Data Source: Gulf Cooperation Council 13 CTCI/ Investor Relationship

14 Global Market (2/2) Industry Outlook Projected Ethylene Demand-Supply Gap (kt)-india C2 Capacity C2 Demand DSG 2,424 3,909 2,424 4,426 2,424 5,013 2,424 5,688 2,424 6,455 2,424 7,311-1,485-2,002-2,589-3,264-4,031-4, ~4 New Ethylene Plant 14 CTCI/ Investor Relationship

15 Global Opportunities Industry Outlook Surging Investment in Middle East, especially in downstream products Surge in electricity demand in, India, Southeast Asia and Middle East Rising Demand in Developing Region, like, India, etc. Demand for LNG expected to double Target Market: ME - Qatar, Saudi Arabia, Iran Asia -, Thailand, India, Mainland and Vietnam Middle East USD 300bn new investment within five years in oil related industry USD 614bn/ 436bn/ 110bn investment in Oil/ Gas/ Petrochemical business during Thailand PTT Group plans to inject THB 600bn new investment in hydrocarbon business Total THB 420bn MRT investment before 2014 India USD 18bn sustained investment in hydrocarbon by 2010 USD 320~550bn investment in infrastructure in five years Mainland 11th Five -Year Plan ( ) - Four New Ethylene Crackers in Planning -Total Capacity:4,000K MTA Ethylene Five Sets of LNG Terminals - CNPC:3 sets / Sinopec:2 sets De-NOx & Incineration Projects RMB 600bn Investment in infrastructure business Vietnam USD 5-10bn for 8,350MW Power Expansion by CTCI/ Investor Relationship

16 Company Overview Industry Outlook Business Operation Financial Highlights Looking Forward 16 CTCI/ Investor Relationship

17 New Contracts up to April.30, 2008 Business Operation EPC Waste-to-Energy Others 71,000 70,784 3, in TWD million 10.3% 10.3% 2.1% 2.2% 61,000 51,000 Hi-tech 2.2% Enviro 0.3% Others 1.2% Power 22.8% 41,000 South South East Asia East 87.6% Asia 87.6% 31,000 21,000 11,000 66,947 18, ,028 15,810 25, ,562 Infrastructure Infrastructure 26.2% 1.1% Waste-to- Energy 2.7% General Industry 0.7% Terminal 2.5% Petrochemical 66.5% 1, * * Including the projects with Letter of Intent (LOI): TWD 16,689m 17 CTCI/ Investor Relationship

18 Backlog Business Operation up to April.30, ,000 in TWD million 91,864 Middle East 13.7% 6.2% USA 0.5% Others 0.3% 32.7% 80,000 60,000 73,663 73,663 74,977 85,430 Infrastructure Infrastructur 10.3% e 10.3% Waste-to- Energy 3.6% Terminal 4.4% Hi-tech 3.4% General Industry 2.2% Enviro 1.1% Others 0.4% 40,000 Power 17.5% South East Asia 46.6% 20,000 Hydrocarbon 57.1% * * Including the projects with Letter of Intent (LOI): TWD 16,689m 18 CTCI/ Investor Relationship

19 Revenue Analysis Business Operation Evolution of Overseas Business - Proportion of Overseas Revenue of Total Revenue YR % YR % YR % YR2006 YR2007 Southeast Asia (Ex Thailand) 3.0% Middle East 6.0% Others 0.1% Southeast Asia(Ex Thailand) 5.4% Middle East Others 5.5% 0.2% Thailand 14.4% 6.4% 70.1% Thailand 27.0% 56.9% 5.0% Environment 1.3% Industry 7.5% Hi-tech 6.8% Others 3.0% Hydrocarbon 37.0% General Industry Incineration5.3% 4.6% Hi-tech 6.5% Environment 1.0% Others 1.0% Incineration 7.6% Infrastructure 8.1% Hydrocarbon 54.2% Infrastructure 12.8% Power 24.0% Power 19.4% 19 CTCI/ Investor Relationship

20 Company Overview Industry Outlook Business Operation Financial Highlights Looking Forward 20 CTCI/ Investor Relationship

21 Financial Data Summary Financial Highlights in TWD million, except per share data 2001* 2002* 2003* 2004* Revenues 14,267 15,924 16,343 22,061 31,519 33,582 % Growth 12% 3% 35% 43% 6.5% Gross Profit 1,701 1,645 1,634 1,180 1,927 2,186 % Margin 11.9% 10.3% 10.0% 5.3% 6.1% 6.5% Net Income Reported EPS Cash DPS High Dividend Pay-out Policy Stock DPS Payout Ratios -- 84% -- 75% % % % % New Contract Amount 19,176 24,998 53,502 31,945 15,927 70,784 Total Backlog 22,671 27,972 63,458 70,533 53,685 91,864 * Pro forma consolidated results. 21 CTCI/ Investor Relationship

22 YR2007 Performance and Dividend Financial Highlights 16% 14% 12% 11.65% 14.27% Significant growth in Revenue Gross Profit Net Income Revenue , ,582 YoY(%) 30.9% 10% 8% 6% 4% 9.55% 8.27% 6.1% 5.3% 3.94% 4.47% 6.5% 7.0% 5.39% 6.24% Gross Profit Operation Expense Operation Income Non-Operation Income Net Income (after tax) EPS 3,065 (1,533) 1, , ,187 (1,241) % (23.5%) 61.9% (1.7%) 31.1% 27.5% 2% Payout Ratio 87% 92% (5.4%) Cash Dividend % 0% Cash Dividend Payout Ratio Stock Dividend 82% % % (42.9%) ROA ROE Gross Margin Stock Dividend Payout Ratio 5% 13% (61.5%) 22 CTCI/ Investor Relationship

23 2008Q1 Income Statement (Consolidated) Financial Highlights in TWD million 2008Q1 % 2007Q1 (un-audited) % YoY(%) Revenue 10, % 8, % 33.2% Gross Profit % % 82.8% Operating Expense (419) (3.8%) (239) (2.9%) (75.3%) Operating Income % % 90% Non-Operation Income (37.9%) Net Income (after tax) % % 59% EPS (TWD) % 23 CTCI/ Investor Relationship

24 2008Q1 Balance Sheet (Consolidated) Financial Highlights in TWD million Assets Liabilities & Shareholders Equity 2008Q1 2007Q1 (un-audited) 2008Q1 2007Q1 (un-audited) Current Assets 32,634 24,450 Current Liabilities 24,059 19,248 Funds and Investment 1,125 1,222 Long-term Liabilities 5,577 3,599 Fixed Assets 6,992 6,467 Other Liabilities 1, Intangible Assets Other Assets Shareholders Equity 10,407 9,082 Total Asset 41,527 32,894 Total Liabilities & Shareholders Equity 41,527 32, CTCI/ Investor Relationship

25 Company Overview Industry Outlook Business Operation Financial Highlights Looking Forward 25 CTCI/ Investor Relationship

26 YR2008 Market Opportunities Looking Forward bn 18.5bn 2008 Potential Opportunities Area Overseas Hydrocarbon Market Domestic Hydrocarbon Market Overseas Non-Hydrocarbon Market Domestic Non-Hydrocarbon Market Potential Opportunities TWD 120bn TWD 54bn TWD 44bn TWD 35bn 70~80bn Total TWD 253bn 年 96 年 97 年 2008 Potential Opportunities Breakdown NON- HYDROCARBON 31% South East Asia 23% 6% Emerging Market 3% Others 1% 24% HYDROCARBON 69% Middle East 43% 26 CTCI/ Investor Relationship

27 YR2008 Business Strategy Looking Forward New Market Development Emerging Market India (Setting Subsidiary) Russia and Central Asia Tatarstan Refinery & Complex Kazakhstan Complex RPL Jamnagar Refinery IOCL Paradip Refinery & Complex Essar Jamnagar Refinery & Complex Substantially Expand Global Market Middle East South East Asia New Business Approach Desalination Environment and Energy Saving (E & ES Business) Aramco/Total Jubail Export Refinery (KSA) Aramco/Dow Ras Tanura Complex Refinery (KSA) Aramco/ConocoPhillips Yanbu Export Refinery (KSA) Aramco/Sumitomo Petro Rabigh Refinery (KSA) Aramco Eastern Refinery (KSA) QP Al Shaheen Refinery (Qatar) 27 CTCI/ Investor Relationship

28 Business Momentum Looking Forward Revenue Enlarged from Solid Backlog Margin Improved - Increasing favorable projects with good margin contribution in Risk mitigation by hedging raw materials (copper, nickel, etc.) and currency - Enhanced project management and global logistic capabilities IPO of Subsidiaries Planned IPO of subsidiaries mainly for - Expansion in environmental resources business in and South East Asia - Expansion in EPC business in Thailand Global Resource Management - Setting Stronghold in India through local subsidiary - Strengthen subsidiary as EPC prime contractor. - Promote CTCIT as the regional EPC center in Southeast Asia Sound Corporate Governance - Three independent directors in BOD - Risk committee together with three functional committees of BOD (Corporate Governance Committee/ Audit Committee /QA and HSE Committee) - Grade A Company of TSEC Information Disclosure and Transparence Ranking in 2005, CTCI/ Investor Relationship

29 Thank you for your lasting support 29 CTCI/ Investor Relationship