Taiwan Prosperity Chemical Corporation. 2Q/2013 Investors Conference

Transcription

1 Taiwan Prosperity Chemical Corporation 2Q/20 Investors Conference September, 20 TPCC

2 Disclaimer The forward-looking statements contained in this presentation are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these forward-looking statements. Taiwan Prosperity Chemical Corporation makes no representation or warranty as to the accuracy or completeness of these forward-looking statements and nor does Taiwan Prosperity Chemical Corporation undertake any obligation to update any forward-looking statements, whether as a result of new information or future events. TPCC 2

3 Agenda Company Snapshot 2Q/20 Financial Results Business Overview Capital Expenditure 2H/20 Business Outlook TPCC

4 Taiwan Prosperity Chemical Corp. Established: May, 99 Headquarter: Taipei, Taiwan IPO in Taiwan: October, 2007 Paid in Capital: NT$ 2,920 million Market Cap: NTD 9,72 million (as of 08/2/20, NTD. per share) ( USD 24 million ) Production facility: Lin Yuan, Kaohsiung, Taiwan Employees: 28 (as of 06/0/20) Core Value Growing by Innovation TPCC 4

5 Production Facility.Cumene (460 KTA) 2.Phenol/Acetone (60 KTA/22 KTA).Bisphenol-A (07 KTA) Beijing 4.Anone (0 KTA) Shanghai.MAN (40 KTA) Kaohsiung (TPCC) 6.H2 (7K Nm/hr) TPCC

6 Agenda Company Snapshot 2Q/20 Financial Results Business Overview Capital Expenditure 2H/20 Business Outlook TPCC 6

7 2Q/20 Statement of Comprehensive Income (In NT millions except otherwise noted) 2Q/ Q/ 2Q/2 QoQ % YoY % Net Sales,922,0 6,464 2 (8) COGS (,882) (,2) (6,68) (2) 8 Gross Profit () (8) Gross Margin 0.7%.%.% (0.4) (0.8) Operating Expense (44) (2) (2) 29 () Operating Income (04) (2) (6) (0) (88) Operating Margin -.8% -.0% -0.9% (0.8) (0.9) Non-operating Income/(Expense) () () (6) 2 7 Income before Tax (7) (6) (62) (8) (9) Income Tax Benefit/(Expense) Net Income (0) () (0) (97) (08) Net Margin -.8% -.0% -0.8% (0.8) (.0) TPCC 7

8 2Q/20 Statement of Comprehensive Income (In NT millions except otherwise noted) 2Q/ Q/ 2Q/2 QoQ % YoY % Net Income (0) () (0) (97) (08) Other Comprehensive Income(Loss) 8 2 (20) (26) 29 Total Comprehensive Income(Loss) (67) () (7) (6,444) 6 Basic EPS (NT$) (0.6) (0.8) (0.8) (00) (00) ROE (%) (.6) (0.78) (0.6) (00) (46) ROA (%) (0.79) (0.4) (0.4) (9) (4) Free Cash Flow () () (607) 98 (4) (440) () Free Cash Flow = Operating Cash Flow - CAPEX - L/T Investment TPCC 8

9 H/20 Statement of Comprehensive Income (In NT millions except otherwise noted) H/ H/2 YoY % Net Sales,2 2,702 (2) COGS (,) (2,2) (9) Gross Profit (79) Gross Margin 0.9%.7% (2.8) Operating Expense (26) (299) (4) Operating Income (6) 7 (90) Operating Margin -.4%.4% (2.7) Non-operating Income/(Expense) (26) () (2,909) Income before Tax (82) 72 (206) Income Tax Benefit/(Expense) 24 (28) 84 Net Income (8) 44 (20) Net Margin -.4%.% (2.) TPCC 9

10 H/20 Statement of Comprehensive Income (In NT millions except otherwise noted) H/ H/2 YoY % Net Income (8) 44 (20) Other Comprehensive Income(Loss) Total Comprehensive Income(Loss) (68) 89 (80) Basic EPS (NT$) (0.4) 0.49 (9) ROE (%) (2.4).6 (244) ROA (%) (.2) 0.97 (00) Total Assets,260 4,642 (9) Total Liabilities 6,99 7,66 () Total Shareholders' Equity 6,662 7,026 () Free Cash Flow () (942) 7 (264) () Free Cash Flow = Operating Cash Flow - CAPEX - L/T Investment TPCC 0

11 Sales/ GM & PAT TPCC

12 2Q/20 Statement of Cash Flow (In NT millions except otherwise noted) 2Q/ Q/ 2Q/2 Cash Flows From Operating Activities Net income (7) (6) (62) Adjustments to reconcile income to net cash provided by operating activities () (467) 22 Net cash generated from operating activities (248) () 9 Cash Flows From Investing Activities (9) (2) (9) 0 Cash Flows From Financing Activities 24 4 (49) Net Increase In Cash And Cash Equivalents (27) (4) (72) Cash And Cash Equivalents, Begining Of Period Cash And Cash Equivalents, End Of Period TPCC 2

13 H/20 Statement of Cash Flow (In NT millions except otherwise noted) H/20 H/202 Cash Flows From Operating Activities Net income (82) 72 Adjustments to reconcile income to net cash provided by operating activities (98) 09 Net cash generated from operating activities (779) 68 Cash Flows From Investing Activities (4) (2) Cash Flows From Financing Activities 7 (72) Net Increase In Cash And Cash Equivalents (70) (6) Cash And Cash Equivalents, Begining Of Period Cash And Cash Equivalents, End Of Period 27 TPCC

14 Solid Financial Structure Current Ratio (x) H/20 Debt Ratio (%) 60% 0% 40% 0% 20% % 4% 4% 0% 9% 4% H/20 Book Value per share TPCC H/20 4

15 Agenda Company Snapshot 2Q/20 Financial Results Business Overview Capital Expenditure 2H/20 Business Outlook TPCC

16 ,800 CPC Propylene/Benzene (USD/MT),700,600,00,400 Propylene,00,200,00, Benzene Year - Month Source :TPCC TPCC 6

17 Phenol/BPA/Anone monthly average Price (USD/MT) 2,00 2,400 2,00 2,200 2,00 2,000,900,800,700,600,00,400,00,200,00, BPA Anone Phenol Year Month Source :TPCC TPCC 7

18 Worldwide Phenol Capacity & Demand Outlook Unit:KT/YR Phenol Capacity 0,48 0,82, 2,404 Demand-Bisphenol A,980 4,206 4,496 4,7 Demand-Phenolic Resins 2,76 2,699 2,796 2,896 Demand-Anone, ,000 Demand-Others,07,276,,6 Phenol Demand 9,074 9,96 9,8 9,972 Capacity - Demand,407,627,94 2,42 Utilization Rate, % 87% 8% 8% 80% Source :TPCC TPCC 8

19 China Phenol Capacity & Demand KT/YR 2,000 Capacity Demand,8,800,600,97,64,6,400,70,200,8, Capacity Annual Growth Rate: 6.9% Demand Annual Growth Rate: 7.8% TPCC Source: TPCC 9

20 TPCC Sales Volume in Recent Years (Unit : MT) Year H/20 Volume 72,47 486,48 87,477 60,0 624,090 29,6 TPCC 20

21 Shipments by Destination 0% 4% 40% % 0% 2% 20% 202 H/20 % 0% % 0% TAIWAN CHINA SOUTH & EAST ASIA INDIA NORTH ASIA AMERICA MIDDLE-EAST OTHERS Taiwan China South & East Asia India North Asia America Middle-East Others H/20 49% 9% 4% 2% 8% % % % % % 4% 4% 0% % 6% % TPCC 2

22 TPCC Business Migration Cumene Propylene Benzene H2 Cumene Plant cumene Phenol/Acetone /AMS Plant Phenol Anone Plant BPA Plant Phenol Anone BPA AMS Acetone Acetone AMS Started With 4 Sites And 6 Products TPCC 22

23 TPCC Business Migration Possessed Capacity Leased Capacity To Be Completed By Q4 20 Cumene LNG H2 No. Plant Phenol Propylene Benzene Cumene Plant cumene Phenol/Acetone /AMS Plant Phenol Anone Plant BPA Plant Anone BPA LNG H2 No.2 Plant AMS Acetone Acetone AMS BDO nc4 No 2 Steam/MAn Plant BDO Plant THF Plant THF nc4 No Steam/MAn Plant GBL MAn Migrate to 0 Sites And 0 Products TPCC 2

24 BDO PLANT TPCC 24

25 The High Value-added Petrochemical TPCC BDO Derivatives Development Plant C4 C4 SPLITER n-c4 MAN PLANT Crude Man BDO PLANT GBL NHEP PLANT NHEP NVP PLANT NVP PVP PLANT PVP TPCC NMP PLANT NMP SPANDEX PLANT SPANDEX FIBER PTMEG PLANT THF TPU COPOLYESTER POLYOL PLANT PU PLANT BDO PU PU PU Paint Adhesive Foam PBT PLANT PBT COMPOUNDING PLANT ENGINEERING PU PLASTICS Leather 2

26 MAn Series Production Capacity MAn Expansion * 20XX* 40 KTA 80 KTA BDO eq. Expansion 4 KTA 68 KTA TPCC *: TPCC estimation 26

27 Agenda Company Snapshot 2Q/20 Financial Results Business Overview Capital Expenditure 2H/20 Business Outlook TPCC 27

28 NT$, M Capital Expenditures TPCC 28

29 Agenda Company Snapshot 2Q/20 Financial Results Business Overview Capital Expenditure 2H/20 Business Outlook TPCC 29

30 Benzene 2H/20 Business Outlook-. Supply from Asia is still sufficient. 2. Industrial operating rate remains low due to the capacities in Japan, Korea and Taiwan are scheduled turnaround in Q/ and weak demand from end market.. Less export to US market due to thinner spread. 4. Price of benzene will be impacted by oil and end demand. Propylene. Asian crackers are under annual turnarounds and caused supply tightened till 2H/ The supply can be improved in 4Q/20 after new cracker from CPC on stream. TPCC 0

31 2H/20 Business Outlook-2 Phenol Chain Market Lacking boost from global economy, demand in down-stream markets remains weak. With oversupply in most market segments and still upcoming capacity expansion, the operating rate in the chain will stay low. Corporate strategy To cope with threats in raw material and market trends, heavy attention will be paid to achievement of best possible margin rather than highest production. Reduce operation cost by flexible operation lines. Business strategy Reallocation to sales regions that already commenced in 202 will be continued to diminish reliance on China market and to maximize margin. Utilized equipment leasing strategies to maintain revenue growth and acquired major new series of products (BDO/THF/GBL) TPCC

32 Thank You TPCC 2