TSRC Corporation · TWSE:2103
TSRC — TSRC Investor Conference 2018
26 slides from TSRC's conference presentation, Nov 15, 2018
Slide 1: TSRC – Global Specialty Polymers
2018 TSRC – Global Specialty Polymers Investor Conference, 15th Nov 2018
Slide 2: Disclaimer
Disclaimer The information presented and referred herein are based upon the information obtained internally and externally from our company. In light of the forward-looking operational results, financial condition and business results, they might be different from those information expressly or impl
Slide 3: Agenda
AGENDA 1. Introduction • Joseph Chai, CEO & President 2. YTD September 2018 Financial • Edward Wang, CFO Performance 3. TSRC 5-year Business Plan- • Joseph Chai, CEO & President update- progress on Organic Growth Strategy 4. Q&A @2018 TSRC Corp. All Rights Reserved. P.3
Slide 4: Introduction
[1] Introduction Joseph Chai, CEO & President
Slide 5: TSRC Key Events
TSRC Key Events 2018 JUNE Directors & • Elected the 16 th Board of OCTOBER • Established TSRC Independent Direct at the (Vietnam). Co. Ltd. shareholder meeting • Ms. Nita Ing assumed Chairman of the Board APRIL AUGUST • Increased • Set up a new shareholdings at production line for Indian Synthetic A
Slide 6: YTD September 2018 Financial Performance
[2] YTD September 2018 Financial Performance Edward Wang, CFO
Slide 7: Financial Performance – YTD Sep 2018
Financial Performance – YTD Sep 2018 Financial Highlights • Revenue of NT$ 22,746 million. • Operating profit of NT$ 1,104 million. • Net income after tax of NT$ 829 million, or NT$1.00 per share Business Update • Slower auto growth in China and abundant supply of low-price natural rubber limit volu
Slide 8: Strong Earnings Increase
Strong Earnings Increase Sales Volume (KMT) Revenue (NT$M) -6% -8% 24,671 22,746 366 344 YTD SEP'17 YTD SEP'18 YTD SEP'17 YTD SEP'18 Gross Profit (NT$M) Operating Profit (NT$M) +13% +31% 2,398 2,715 1,104 842 YTD SEP'17 YTD SEP'18 YTD SEP'17 YTD SEP'18 @2018 TSRC Corp. All Rights Reserved. P.8
Slide 9: TSRC Business with 71% of sales linked to Asian Market
TSRC Business with 71% of sales linked to Asian Market TSRC Revenue % by Geography Asia 71% NT$ 16,199 million 15% Americas NT$ 3,344 million 14% EMEA NT $ 3,203 million @2018 TSRC Corp. All Rights Reserved. P.9
Slide 10: Strong Net Income and EPS Improvement
Strong Net Income and EPS Improvement • Two extraordinary items in 2017; (1)TAMC impairment losses of $280M, and (2) $154M gain from THSR disposal. • Gross Profit improved due to better product mix and relative stable feedstock price. • Strong Net Income contributed by solid joint ventures’ performa
Slide 11: 5-Year Business Plan Update – Progress on Organic Growth Strategy
[3] 5-Year Business Plan- Update-Progress on Organic Growth Strategy Joseph Chai, CEO & President
Slide 12: 5-Year Business Plan Objectives
5-Year Business Plan Objectives To transform TSRC to become a growth oriented profitable global enterprise in specialty materials • Increase specialty business ratio to above 50% of portfolio • Grow Operating Income substantially • Improve Operating Profit % above current level @2018 TSRC Corp. All
Slide 13: Three Key Strategies
Three Key Strategies Strength Business Organic Growth Margin Expansion Portfolio • New Products • New Market • Operation Segments Optimization • Geographic Expansion • New Technology • Process and Quality Platforms Excellence • Commercial Excellence Programs • Merger & Acquisitions @2018 TSRC Corp.
Slide 14: Organic Growth Strategy–Making Good Progress
Organic Growth Strategy–Making Good Progress New Advanced Significant Growth Sales & Profit SEBS Line at in Advanced Shoe Growth in India Nantong, China Materials New Products Geographic Expansion Commercial Excellence Programs @2018 TSRC Corp. All Rights Reserved. P.14
Slide 15: HSBC has a wide range of Applications
HSBC (Hydrogenated Styrenic Block Copolymers) has a wide range of Applications @2018 TSRC Corp. All Rights Reserved. P.15
Slide 16: Organic Growth- Expand SEBS Capacity
Organic Growth- Expand SEBS Capacity New • New SEBS technology & products for Products existing and new applications including medical, e.g. IV Bag, Set, and Tubing Geographic • 20,000 metric tons per annum new Expansion capacity for Advanced SEBS at Nantong, China @2018 TSRC Corp. All Rights Reserv
Slide 17: Building a Best-in-class SEBS Line
Building a Best-in-class SEBS Line to Serve Existing & New Products and Applications Focus Market Plastics Modification, Product & Technology D Automotive, Medical Devices High Vinyl, Low Styrene, (FDA & Medical GMP) High Flow SEBS C (TSRC in-house proprietary Capacity & Investment B SEBS technology
Slide 18: ASM Enable Superior Footwear Performance
ASM (Advanced Shoe Materials) Enable Superior Footwear Performance One-step Rebound Anti-slip Damping Softness Injection • Outstanding • Abrasion • High impact • Less operation • Soft and rebound with resistant absorption cost comfortable stable • Grip and release • Lightweight, • Improve hand susta
Slide 19: Organic Growth- Expand ASM Business
Organic Growth- Expand ASM Business • Innovative materials for the foam midsole, New to meet one-step moulding, fashion, Products lightweight, and green recycle requirements • Increase geographical sales through new Geographic production capacities in Gangshan, Expansion Taiwan and Vietnam Commercia
Slide 20: Expand the Capacities of TSRC ASM
Expand the Capacities of TSRC ASM 1 Shanghai, CHN • 2,000 metric tons (Existing) 2 Gangshan, TWN • 8,000 metric tons (Existing) • 1,200 metric tons (New in 2018) 3 Binh Duong, VNM • 7,000 metric tons (New in 2020) @2018 TSRC Corp. All Rights Reserved. P.20
Slide 21: India is one of the Fastest-growing Economies in the World
India is one of the Fastest-growing Economies in the World India’s economy is picking up and growth prospects look bright—partly thanks to the implementation of recent policies, such as the nationwide goods and services tax and the country opening up more to foreign investors. 8.2% 7.4% 7.7% 7.7% 7.
Slide 22: Solid Progress made by TSRC and Indian JV Partners
Solid Progress made by TSRC and Indian JV Partners despite Challenges 2010 Incorporation of Indian Synthetic Rubber Private Ltd. (ISRPL) 2011 Start to construction of the ESBR site 2014 Start production at ISRPL 2016 ISRPL’s utilization rate 60% & TSRC increased share at ISRPL to 34.02% 2018 ISRPL’s
Slide 23: Stabilized Business in 2017 and Positioned JV for Positive Growth
Stabilized Business in 2017 and Positioned JV for Positive Growth +481% Sales Volume +226% +297% (Base Year = 2014) +575% Net Sales +262% (Base Year=2014) +150% Net Income (869) (943) (110) 365 (NT$ M) 2014 2015 2016 2017 @2018 TSRC Corp. All Rights Reserved. P.23
Slide 24: Summary
Summary 1 YTD 2018 Business Performance 2 TSRC 5-Year Business Plan 3 TSRC Vision YOY business Solid execution of TSRC 5- Maintain our momentum improvement over 2017 year Business Plan – toward our vision to despite very challenging 3 examples on progress become a Global synthetic rubber business ma
Slide 25: Q&A
Q&A @2018 TSRC Corp. All Rights Reserved. P.25
Slide 26: Thanks
THANKS