Slide 1: TSRC – Global Specialty Polymers
2024 TSRC – Global Specialty Polymers 1st Investor Conference, 23rd May 2024
Slide 2: Disclaimer
Disclaimer The information presented and referred herein are based upon the information obtained internally and externally from our company. Forward-looking operational results, financial condition and business results might be different from those information expressly or impliedly presented herein
Slide 3: Agenda
AGENDA 1. Introduction • Thomas Lin, Deputy Spokesperson 2. 2023 & 1Q2024 Financial • Edward Wang, CFO Performance 3. 2024 Outlook & Business Highlights • Joseph Chai, CEO 4. Summary • Joseph Chai, CEO 5. Q&A 2024 TSRC Confidential and Proprietary P.3
Slide 4: Introduction
[1] Introduction Thomas Lin, Deputy Spokesperson
Slide 5: 2023 & 1Q2024 Financial Performance
[2] 2023 & 1Q2024 Financial Performance Edward Wang, CFO
Slide 6: 2023 Financial Highlights
2023 Financial Highlights In NT$M 2022 2023 YoY Revenue 33,841 31,427 (7%) Gross Profit 5,513 3,308 (40%) Operating Profit 2,675 948 (65%) Non-Operating 394 476 21% Income before Tax 3,069 1,424 (54%) Net income 1,783 680 (62%) EPS (NT$) 2.16 0.82 2024 TSRC Confidential and Proprietary P.6
Slide 7: 1Q2024 Financial Results
1Q2024 Financial Results In NT$M 1Q23 4Q23 1Q24 QoQ YoY Revenue 8,114 7,882 8,745 11% 8% Gross Profit 913 968 1,052 9% 15% Operating Profit 313 376 416 11% 33% Non-Operating 99 90 82 (9%) (17%) Income before Tax 412 466 498 7% 21% Net income 256 225 261 16% 2% EPS (NT$) 0.31 0.27 0.32 2024 TSRC Conf
Slide 8: 1Q2024 Revenue by Geography
1Q2024 Revenue by Geography 8,745 8,114 7,882 923 955 852 1,424 1,248 1,130 Others Europe Americas 6,306 Asia 5,701 5,827 1Q23 4Q23 1Q24 Amount in NT$M 2024 TSRC Confidential and Proprietary P.8
Slide 9: 1Q2024 Major Equity Investment
1Q2024 Major Equity Investment ISRPL ARL-TSRC 108 111 89 23 11 7 Amount in NT$M Note: numbers shown as TSRC’s investment income of each investee. 2024 TSRC Confidential and Proprietary P.9
Slide 10: Industry Dynamics remains favorable
Industry Dynamics remains favorable NR-BD price gap (RHS) ICIS BD CFR NEA (LHS) US$/MT 2,100 1,200 1,800 900 1,500 600 1,200 300 900 0 600 300 (300) 0 (600) Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 2024 TSRC Confidential and Proprietary P.10
Slide 11: 2024 Outlook & Business Highlights
[3] 2024 Outlook & Business Highlights Joseph Chai, CEO
Slide 12: Gradual recovery for Chemical industry in 2024
Gradual recovery for Chemical industry in 2024 ♦ Destocking activities ceased leading to demand stabilization ♦ Recovery diverges among regions: • Improved sentiment in the US/ EU manufacturing sector • Persist structural challenges in mainland China • Stable growth in Southeast Asia ♦ Automotive ma
Slide 13: Some challenges and uncertainties persist
Some challenges and uncertainties persist ♦ Oversupply and intense price competition ♦ Geopolitical conflicts dampen economic recovery ♦ High operating cost unlikely to cool in the short term ♦ No quick solution to Mainland China economic challenges 2024 TSRC Confidential and Proprietary P.13
Slide 14: 2024 Market outlook – Current view
2024 Market outlook – Current view ♦ Year-on-Year basis, 2024 market demand is expected to improve over last year ♦ Some product lines and market segments remain at low point with compressed margins ♦ TSRC is expected to make further in-road in EV tires and Medical application ♦ India economic growt
Slide 15: Other Updates
Other Updates ♦ Shenhua and ARL-TSRC relocation project is on- track to complete by end 2024 ♦ Continue to work hard on a couple of initiatives which provide new growth momentum and earning opportunities ♦ Made solid progress on ESG targets and milestones in 2023 2024 TSRC Confidential and Proprieta
Slide 16: Key ESG actions in 2023
Key ESG actions in 2023 As of December 31, 2023 GHG (Scope1+2) TRIR R&D expense 8.3 % (vs Base year 2021) 0.34 1.2 % (vs 2022) Employee wellbeing Renewable energy usage Granted patents programs 6.1 % 2,606 prs 449 Wastewater recycling ratio ESG training Local Sourcing 25 % 100 % 78 % Revenue from Pr
Slide 17: Summary
[4] Summary Joseph Chai, CEO
Slide 18: Summary
Summary 01 02 03 ♦ 2023 financial ♦ 2024 market is ♦ Solid ESG progress performance was expected to in 2023. Growth impacted by remain moderate initiatives to weak demand, but with demand strengthen margin and outlook business portfolio compression, and improves over and operational intense 2023 res
Slide 19: Q&A
Q&A 2024 TSRC Confidential and Proprietary P.19
Slide 20: Thank You
TSRC CORPORATION