Formosan Union Chemical Corp. · TWSE:1709
Formosan Union Chemical — 2017 Investor Conference
17 slides from Formosan Union Chemical's conference presentation, Dec 20, 2017
Slide 1: 2017 Investor Conference
FUCC Formosan Union Chemical Corporation 2017 Investor Conference 2017.12.20 (Security Code: 1709)
Slide 2: Forward-looking statements
Information in this presentation may include forward-looking statements and does not represent all of the company’s possible future business activities, events or developments. The statements are based on our presumptions of future operation while political, economic and market factors are not in ou
Slide 3: Company Historical Highlights
Company Historical Highlights June 1973 Established in Taipei City on June 21, 1973. The registered capital is NT$ 50,000,000. April 1977 Completed Linyuan Factory in Kaohsiung. Started producing detergent-use alkyl benzene. July 1986 Company stock officially offered to the market for trading.
Slide 4: Business Scope
Business Scope • Main business: We're committed to the manufacturing, processing and sale of alkyl benzene, normal olefin, alkyl phenol, hydrogenated hydrocarbon resin and the derivatives. We also operate and invest in the related businesses.
Slide 5: Business Proportion of Main Products (Departments)
• Business Proportion of Main Products (Departments) Our main business focuses on the manufacturing and sale of the following products and derivatives: Alkyl benzene, alkyl phenol, alkyl benzene sulfonic acid and hydrocarbon resin. Year 2016 2015 Item Amount Ratio (%) Amount Ratio (%) Alkylation 5,6
Slide 6: Our Products
• Our Products 1. Alkyl benzene: An upstream material used in the production of laundry powder and detergent, daily necessity products. 2. Alkyl benzene sulfonic acid: After the sulfonation of alkyl benzene, it becomes the main component of cleaning agent. It is extensively used in the household cle
Slide 7: Market Analysis
• Market Analysis Primary sales region of product Unit: NT$ thousands Year 2016 2015 Sales Region Amount Ratio (%) Amount Ratio (%) Domestic sales 2,560,990 29.87 2,720,166 28.75 China 1,720,012 20.06 1,770,203 18.71 Vietnam 599,023 6.99 716,505 7.57 Philippines 495,334 5.77 554,931 5.86 Export sale
Slide 8: Short and Long Term Business Development Plans
• Short and Long Term Business Development Plans Alkyl benzene 1. Short term: Strengthen customer relationship and solidify our market. 2. Long term: Provide sophisticated customer services and develop new uses of products through our flexible supporting operation. Alkyl phenol 1. Short term: De
Slide 9: Simplified Consolidated Statements of Income in the Last 5 Years
SIMPLIFIED CONSOLIDATED STATEMENTS OF INCOME IN THE LAST 5 YEARS Unit: NT$ million 2013 % 2014 % 2015 % 2016 % 2017Q3 % Operating revenue 11,322 100 11,075 100 9,462 100 8,574 100 6,555 100 Operating costs 10,241 90 10,146 92 7,939 84 6,747 79 5,260 80 Gross profit 1,081 10 929 8 1,523 16 1,827 21 1
Slide 10: Financial Overview
Financial Overview Financial information for the last 5 years
Slide 11: Consolidated Revenue in the Last 5 Years
CONSOLIDATED REVENUE IN THE LAST 5 YEARS Unit: NT$ million 12000 11,322 11,075 10000 9,461 8,574 8000 6,555 6000 4000 Operating Revenue 2000 0 2013 2014 2015 2016 2017Q3
Slide 12: Net Profit in the Last 5 Years
NET PROFIT IN THE LAST 5 YEARS Unit: NT$ million 1000 901 900 800 702 700 600 567 500 Net Profit 400 304 300 202 200 100 0 2013 2014 2015 2016 2017Q3
Slide 13: Simplified Consolidated Statements of Income
SIMPLIFIED CONSOLIDATED STATEMENTS OF INCOME Amount of Rate of Unit: NT$ million 2017Q3 % 2016Q3 % increase (or increase (or decrease) decrease) (%) Operating revenue 6,555 100 6,539 100 16 0 Operating costs 5,260 80 5,076 78 183 4 Gross profit 1,295 20 1,463 22 (168) (11) Operating expenses 582 9 5
Slide 14: Simplified Consolidated Balance Sheets in the Last 5 Years
SIMPLIFIED CONSOLIDATED BALANCE SHEETS IN THE LAST 5 YEARS Unit: NT$ million 2013 % 2014 % 2015 % 2016 % 2017Q3 % Assets Current assets 6,070 61 5,844 57 5,324 52 5,113 49 4,849 46 Non-current assets 3,870 39 4,334 43 4,953 48 5,226 51 5,792 54 Total assets 9,940 100 10,178 100 10,277 100 10,339 100
Slide 15: Simplified Consolidated Balance Sheets
SIMPLIFIED CONSOLIDATED BALANCE SHEETS Amount of Rate of Unit: NT$ million 2017 Q3 % 2016 Q3 % increase (or increase (or decrease) decrease) (%) Assets Current assets 4,849 46 5,790 53 (941) (16) Non-current assets 5,792 54 5,149 47 643 12 Total assets 10,641 100 10,939 100 (298) (3) Liability Curre
Slide 16: Financial ratio analysis in the last 5 years
Financial ratio analysis in the last 5 years
Slide 17: Vision
Vision The feedstock price has been raising recently and international competition is ever-increasing. Although objective conditions have imposed pressure on our business, we proactively negotiate with the customers for price adjustment. At the same time we strive to lower the production cost to e