Eternal Materials Co., Ltd. · TWSE:1717
Eternal Materials — Investor conference hosted by President Securities Corp. 2024
38 slides from Eternal Materials's conference presentation, Aug 20, 2024
Slide 1: Eternal Materials
| » ETERNAL MATERIALS Elements of Infinite Possibilities
Slide 2: 2024 Second Quarter Operating Result & Synthetic Resins Division Strategy
2024 Second Quarter Operating Result & Synthetic Resins Division：Sustainable, Low-Carbon and Innovative Growth Strategy Presenter : Director, C.N. Li (Synthetic Resins Production Division and Unsaturated Polyester Resins Division) B.C.Liu (spokesperson) Date : 2024/08/20
Slide 3: Agenda
Agenda 1. Profile 2. 2024 Second Quarter Operating Result 3. Synthetic Resins Division：Sustainable, Low-Carbon and Innovative Growth Strategy
Slide 4: Profile
Profile
Slide 5: Profile
Profile Chairman Allen K. L. Kao Core Business Manufacturing, processing and sales Overall Sales Founding Employees Revenue Taiwan 5 Chi na 14 1964 4,822 USD$ 1,363 Production Sites million US A 1 25 T ha i l a nd 1 Headcounts of Researcher R&D expenditures N ot e s 1 : Number of Employees on Ja pa
Slide 6: Development Milestones
Development Milestones Resins UV LED Equipment SYTHETIC RESINS MONOMER OPTICAL FILM VACUUM LAMINATOR COATING ADHESIVE OLIGOMER Wet CHEMICAL for PCB/ICS UNSATURATED UV COATING POLYESTER 1985 2000 2008 2016 1964 1989 2004 2013 2020+ PCB IC New Materials Biomaterials CCL EMC MATERIALS for SOLAR IN VITR
Slide 7: Global Production Sites
Global Production Sites Central North Northeast Japan (2) USA (1) China(1) China (1) China(1) Kodama Virginia Aichi Hubei Tianjin Yingkou Southwest Taiwan (5) China (2) Italy (1) Kaohsiung(3) Chengdu Pingtung Milan Chongqing New Taipei Global Production Sites 25 Thailand (1)
Slide 8: Global Service Network
Global Service Network Central North Northeast USA(1) Korea(1) China(3) China(2) China(1) Virginia Suwon Changsha Tianijn Yingkou Wuhan Hubei Japan(2) Italy (1) Southwest Yokohama Milan China(3) Chengdu(1) India(1) Chong qing(2) Taiwan (5) Mumbai Kaohsiung(1) Chungli(2)
Slide 9: 2023 Product Lines Sales Ratio
2023 Product Lines Sales Ratio Electronic Materials 26.4% Resins Materials 52.1% Dry Film Photoresist Dry Film Solder Mask Alkyd Resin、Solvent-Based UV INK Acrylic Coating Resin Dry Film Photosensitive Polyimide Water-Based Acrylic Coating Resin Liquid Polyimide Material Acrylic Resi
Slide 10: Annual Sales Distribution and 2023 Regional Markets Sales Ratio
Annual Sales Distribution (In the recent 5 years), 2023 Regional Markets Sales Ratio Unit : USD million Europe & Other 6% 2000 1,802 Africa 1% 1800 1,645 1600 1,363 Middle East 1% 1,299 1400 1,303 1,116 1200 973 1000 Northeast Asia 5% 793 799 826 800 600 469 472 395 America 4 % 400 364 339 200 160
Slide 11: 2024 Second Quarter Operating Result
2024 Second Quarter Operating Result
Slide 12: Financial Information-Balance Sheets & Key Indices
Financial Information-Balance Sheets & Key Indices 2024Q2 2023 2022 Unit：TWD Millions Amount % Amount % Amount % Cash and cash equivalents 7,935 13 7,624 13 6,671 11 and current financial assets Accounts receivable 15,823 26 15,213 26 17,132 29 Inventories 8,875 14 8,479 14 9,716 16 Financial assets
Slide 13: Financial Information-Statements of Comprehensive Income
Financial Information-Statements of Comprehensive Income 2024Q2 2023 2022 Unit：TWD Millions Amount % Amount % Amount % Operating Revenue 21,590 100% 42,452 100 49,014 100 Gross profit 4,362 20% 8,147 19 10,163 21 Operating expenses 3,189 15% (6,232) (15) (6,886) (14) Operating Income 1,173 5% 1,915
Slide 14: Financial Information-Cash Flow Statements
Financial Information-Cash Flow Statements 2024Q2 2023 2022 Unit：TWD Millions Amount Amount Amount Cash and cash equivalents at the 6,382 5,451 4,289 beginning of the year Cash flows from operating 1,860 6,514 6,581 activities Acquisition of property, plant (1,861) (3,149) (2,783) and equipment Incr
Slide 15: Sales Revenues & Gross Profits
Sales Revenues & Gross Profits Unit：TWD Millions Sales 2Q24 y/y q/q 營收 2Q23 3Q23 4Q23 1Q24 2Q24 Sales 10,850 11,268 10,759 10,021 11,570 Sales +6.6% +15.5% GP 毛利 2Q23 3Q23 4Q23 1Q24 2Q24 Gross +6.2% +1.6% Profits GP 2,070 2,306 2,061 2,164 2,198 GPM 19.1% 20.5% 19.2% 21.6% 19.0% 15
Slide 16: Performance by Segment
Performance by Segment TWD Millions 2Q Sales 2Q Operating Profits Sales % Others High Performance Materials Electronic Materials y/y q/q y/y q/q Resin Materials 1% 1% 0% 0% 22% 22% 26% 26% Resin Materials 5,587 -0.3% +19% 189 +130% +47% 25% 26% 27% 26% Electronic 2,978 +0.5% +11% 247 -2% -17% Materi
Slide 17: Synthetic Resins Division: Sustainable, Low-Carbon and Innovative Growth Strategy
Synthetic Resins Division ：Sustainable, Low-Carbon and Innovative Growth Strategy Presenter : Director, C.N. Li (Synthetic Resins Production Division and Unsaturated Polyester Resins Division) Date : 2024/08/20
Slide 18: Agenda
Agenda 1. Implementation of Sustainable Development ─ Reducing Total Carbon Emissions ─ Energy and Water Management ─ Waste Reduction 2. Sustainable Growth Strategies ─ New Market Expansion ─ Sustainable Innovative Products 3. Digital Transformation
Slide 19: Implementation of Sustainable Development
Implementation of Sustainable Development
Slide 20: Reducing Total Carbon Emissions
Reducing Total Carbon Emissions • A 3% annual reduction in global total carbon emissions starting from 2020. • A 30% reduction in total carbon emissions by 2030 compared to 2020. • A 100% reduction in total carbon emissions by 2050 compared to 2020. Greenhouse gas emissions Greenhouse gas intensity
Slide 21: Sustainable Product Lifecycle
Sustainable Product Lifecycle Upstream Eternal Downstream Waste Supply Chain Manufacturing (Scope 3) (Scope 3) (Scope 1+2) Raw materials：77.6% Direct emissions：4.3% Incineration：0.1% Others：3.5% Indirect emissions：8.4% Other disposal：0.1% Transport：6.0% (Outsourced) ※2023 Eternal produ
Slide 22: Energy and Water Management
Energy and Water Management Renewable Utilization of Water reuse energy usage Water Resources frequency 2023：2.0% 2023：992 million litters 2023 ：1.7 times 2030 Goal：10% Compared to the Long-term Goal: 2050 Goal：100% previous year：-7.6% 2.0times 22
Slide 23: Waste Reduction
Waste Reduction Wastewater VOC Emissions Waste Reuse Rate Discharge SOx ：-89.0 % NOx ：-45.9% Wastewater discharge： Waste Reuse Rate： -31.8% +72.1%。 TSP ：-47.1% Wastewater discharge Hazardous waste reuse VOCs：-32.4% intensity：-16.75% rate：+62.3%。 Baseline: 2018-2020 Baseline: 2020 (average)
Slide 24: Honors and Recognitions
Honors and Recognitions MSCI ESG Ecovadis Sustainalytics A, 6.5/10 Silver Medal,60/100 21.9/100 (AAA-CCC, AAA best) (0-100, 100 best) (100-0, 0 best) Top 31% in the global chemical 69/609 in the global chemical industry. industry Taiwan Corporate FTSE RUSSELL Governance Evaluation S&P Global 3.4/5 L
Slide 25: Sustainable Growth Strategies
Sustainable Growth Strategies
Slide 26: Enhancing New Market Expansion
Enhancing New Market Expansion Completed early deployment in ASEAN, flexibly respond to the changes caused by geopolitical risks and trade wars Seizing the golden decade of ASEAN and India's market rise • Major beneficiaries of industrial chain shifts • Government investment • Increased urbanization
Slide 27: Committed to R&D innovation in sustainable development
Committed to R&D innovation in sustainable development • Focusing on sustainable green products with significant R&D investment. • Focusing on end-user needs and building a vertically integrated ecosystem. • Not only reducing our own carbon footprint, but also assisting downstream partners in reduci
Slide 28: Sustainable Innovative Products - Polyaspartic Resin
Sustainable Innovative Products - Polyaspartic Resin • Exclusive MIT • 100% Solids, Low VOC • Low Odor, Friendly to Workers • Fast Curing, Saves Working Time • Can Cure at Low Temperatures, Suitable for Cold Weather and Winter Application • Excellent Weather Resistance, Prevents Leakage Issues After
Slide 29: Sustainable Innovative Products - Industrial Protection Applications
Sustainable Innovative Products - Industrial Protection Applications Water-based Composites Fluorocarbon Resin • High Strength-to-Weight Ratio • Low VOC • Corrosion and Chemical • Free of APEO and PFOA Resistance • Excellent Weather and Anti- • Various Structural Design Chalking Resistance Options •
Slide 30: Utilizing Material Technology to Improve the Work Environment
Sustainable Innovative Products – Utilizing Material Technology to Improve the Work Environment Water-based Fluorocarbon Resin Thermal Insulation Coating • Reduces the back temperature of steel plates by approximately 20~30 degrees* • Lowers the temperature in workshop environment by about 2~3 degre
Slide 31: Water-based Fluorocarbon Resin
Sustainable Innovative Products - Extends Paint Life to 10-15 Years, Effectively Reducing Maintenance Costs Water-based Fluorocarbon Resin Applicable Areas Hsinchu Science Park Nini Life Pavilion • Solid Color Paint for New or Renovated Exterior Walls • Multicolor Paint、Stone-like Paint、Art Paint、Pr
Slide 32: Sustainable Innovative Products - rPET Polyester Resin
Sustainable Innovative Products - rPET Polyester Resin rPET Button Unsaturated Resin • Replaced 30% of petrochemical raw • rPET usage reaches 32% materials • Reduce carbon emission by 7.6% • Reduced carbon emissions by 22.7% • Low styrene, GRS certified • Matches the performance of • Mass Production
Slide 33: Digital Transformation
Digital Transformation
Slide 34: IoT- Facilities interconnected
Digital Signage IoT- Facilities interconnected Using IoT to connect your Utility systems Alarm informatio Patrol system production facilities, provide a comprehensive overview of operations on a single digital display. Visualize key data points Production data Factory homepage Equipment monitoring s
Slide 35: Smart Manufacturing Projects
Smart Manufacturing Projects Establish a critical feature Establish a process factor analysis method collaboration platform We will develop an AI-driven Big data-driven platform for FTR process analysis method to improvement, process decision- identify critical features and making, and anomaly handl
Slide 36: Safety Management
Safety Management Human-machine safety management • Contractor Management System： By digitizing entry and permit processes and providing visual tools for project management. • Equipment Health Management： Using vibration analysis to keep track of equipment condition and schedule Construction map mai
Slide 37: Future Development
Future Development Manufacturing Execution System (MES) • Adopting International Major MOM System (2023 Gartner Rated Leader) • Integrating SAP ERP with Each Plant's Databases • Integrating AI Applications in Processes to Assist Engineers/Operators in Improving Process Stability Smart monitoring of
Slide 38: Eternal Materials
RH 4 ETERNAL MATERIALS Elements of Infinite Possibilities
Eternal Materials — Investor conference hosted by President Securities Corp. 2024 on 6ix