Eternal Materials Co., Ltd. · TWSE:1717
Eternal Materials — Online investor conference hosted by President Securities Corp. 2021
33 slides from Eternal Materials's conference presentation, Aug 11, 2021
Slide 1: Eternal Materials
= Eternal ® Materials {/ Elements of Infinite Possibilities * . a,
Slide 2: Development and Transformation in SR BU
Development and Transformation in SR BU Henry Chen Chief Operating Officer SR Business group Date:2021-08-11
Slide 3: Agenda
Agenda A. Eternal Materials Profile B. Financial Information C. Resins Business Overview D. Development and Transformation in SR BU
Slide 4: Profile
Profile Core Business / Manufacturing, processing and sales Year of Establishment / 1964 Chairman / Allen K. L. Kao No of Production Sites / 23 Consolidated No. of Headcounts of R&D Revenue Employees Researcher Expenditures NTD 38.4 ~5, 000 592 4% of Sales billion (2020) Eternal is: One of the leadi
Slide 5: Development Milestones
Development Milestones 1964 1985 1989 2000 2004 2008 2013 2016 2020+ 5
Slide 6: Core Technology
Core Technology Environmen t 6
Slide 7: Business Group
Business Group Alkyd Resin, Solvent-Based Acrylic Coating Resin, Resins Materials Dry Film Photoresist, Dry Film Solder Mask, Water-Based Acrylic Coating Resin, 48.2% UV INK, Dry Film Photosensitive Polyimide, Acrylic Resin For Adhesives and Overprinting, Liquid Polyimide Material, Prism Film, Polye
Slide 8: Global Production Sites
Global Production Sites Global Production Sites: 23 Northeast Japan(3) • Ogaki Taiwan ：3 China (1) • Kodama China ：13 Yingkou • Aichi Thailand ：1 USA ：1 North China (1) Tianjin Japan ：3 Malaysia ：1 Italy ：1 Southwest Italy(1) China (2) Milan • Chengdu USA (1) • Chongqing East China (5) Virginia • Ku
Slide 9: Global Service Network
Global Service Network Global sales country：65 Global Service Network : 35 Taiwan 5 China 18 USA 1 Japan 3 Thailand 2 Korea 1 Indonesia 1 India 1 Vietnam 1 Malaysia 1 Italy 1 9
Slide 10: Global Research Sites
Global Research Sites 1. Taiwan－Research & Development Center 2. China－ Mainland China R&D Center 3. China－Beijing laboratory 4. The laboratory of plant (*8) Beijing Tianijn Suzhou Changshu Mainland China R&D Center Kunshan Chengdu Kaohsiung Research & Development Guangzhou Center Ta-Fa Plant Zhuhai
Slide 11: F2016-F2020 Annual Sales
F2016-F2020 Annual Sales Sales Amount 41.6 43.3 38.7 40.4 38.4 25.7 26.8 23.8 24.6 23.6 4.6 4.6 4.5 4.7 4.8 10.2 11.3 11.9 11.3 10.0 2016 2017 2018 2019 2020 ROW TAIWAN CHINA Unit : NTD Billion 11
Slide 12: R&D Honor
R&D Honor 2001 Distinguished Award for Industry Technology Advancement, the highest honor granted 2003 Set up Industrial Technology Innovation Center approved by Ministry of Economic Affairs 2005 Honored NBIA International Incubation Award from Open Laboratory /Incubation Center of ITRI 2007 Awarded
Slide 13: Financial Information
Financial Information
Slide 14: Financial information- B/S
Financial information- B/S Unit：NT$ Millions 2021H1 2020 2019 Amount % Amount % Amount % Cash and cash equivalents 6,364 11 6,170 11 6,076 11 and current financial assets Accounts receivable 19,131 32 17,523 31 15,361 29 Inventories 9,540 16 7,493 13 7,182 13 Financial assets 3,689 6 3,344 6 3,043 6
Slide 15: Financial information- P/L
Financial information- P/L Unit：NT$ Millions 2021H1 2020 2019 Amount % Amount % Amount % Operating Revenue 24,413 100 38,370 100 40,363 100 Gross profit 5,458 22 8,886 23 7,857 19 Operating expenses (3,164) (13) (5,747) (15) (5,522) (14) Operating Income 2,295 9 3,139 8 2,335 6 Non-operating income
Slide 16: Financial information- Cash flow
Financial information- Cash flow Unit：NT$ Millions 2021H1 2020 2019 Amount Amount Amount Cash and cash equivalents at the 6,108 6,010 6,085 beginning of the year Cash flows from operating (413) 4,148 4,946 activities Acquisition of property, plant (857) (1,458) (2,111) and equipment Increase (decrea
Slide 17: Synthetic Resins Business overview
Synthetic Resins Business overview
Slide 18: Business Lines and the Market
Business Lines and the Market Coating Adhesives Alkyd resins, Oil-free polyester resins, Acrylic resins for PSA, Polyester polyol, , Acrylic resins, High molecular weight High molecular weight polyester, PUD, polyester, Fluorocarbons resins, Amino PUR resins, Phenolic resins, PUD. Application Applic
Slide 19: Core Technology of SR BU
Core Technology of SR BU Free-radical polymerization • Solution polymerization • Emulsion polymerization • Suspension polymerization • Heterophase Polymerization Step polymerization • Polyesterficaton • Addition polymerization of isocynate (Dispersion/solvent based/Solvent free) • Co-condensation Po
Slide 20: Sales by region as of 2020
Sales by region as of 2020 N. Asia Rest of World Greater China 2% 50% 6% 79% S. Asia SE. Asia 1% 12% 20
Slide 21: Locations of SR
Locations of SR Production Site(6)：Pingnan, Kunshan, Guangdong, Tianjin, Chengdu, Malaysia Under Planning (1) ：TongLing Sales Office (16) R&D (1) TS (6) Group and Region procurement. Three procurement centers: Taiwan, Shanghai, Zuhai China Taiwan Malaysia Capacity (KT) * Map not to Scale 500+ 21
Slide 22: Development and Transformation in SR
Development and Transformation in SR
Slide 23: Supply chain of coating and adhesives resins
Supply chain of coating and adhesives resins Petrochemical FPG, CPC, NANYA Industry Dow, BASF Eternal, Qualipoly, Eternal, Nanpao, Daily-polymer, Coating resins Adhesives resins SOKEN, Ashland, Allnex ,Dow, BASF, Synthomer Covestro, DIC Rainbow paint, Coating Adhesives Symbio, Globetape, SW, PPG, AK
Slide 24: Coating and Adhesives resins market trend
Coating and Adhesives resins market trend China Market is one of the SR’s most important markets. Coating and Adhesives resins in China, The trends transfer to solvent-free, waterborne, CAGR, 2021-2026 powder, high-solid, and high-performance for environment-friendly. Coating Adhesives The market tr
Slide 25: Transformation and development of SR
Transformation and development of SR Sales forecast (KT) Transformation and development 410 +4.5% 400 • Expand high-value portfolio 390 380 • Develop high performance materials 370 360 Growth from CHINA • Focus on Eco-Friendly Materials 350 and ASEAN 340 +8% • Rooted in ASEAN 330 320 • Boost competi
Slide 26: Expand high-value portfolio
Expand high-value portfolio Expand the high-value products and enter the High value ( GM 25%▲) % of sales quantity in SR 35% new application, ex: textile, fluoro industry, etc. It’s the way to keep and grow the profit. 1 SB PSA Acrylic polyol Fluorocarbon Polyester polyol PUD High Molecular Weight P
Slide 27: Develop High performance materials
Develop High performance materials Application Resins materials Adhesives, matting agent, Ink, textile, leather, heavy- Polyurethane dispersion duty coating for mental Glass coating, Solar Industries Functional resins for anti-reflection and self-cleaning Interior and exterior decoration coating Pho
Slide 28: Focus on Eco-Friendly Materials
Focus on Eco-Friendly Materials Eco-Friendly and Going green ETERNAL focus on Functional & Environmental Friendly materials and invests in developing for Low energy consumption, Low-emission, Non-toxic & High-Performance Materials Low VOC & energy consumption Materials for Green energy • High Solid
Slide 29: Rooted in ASEAN
Rooted in ASEAN Opportunities in ASEAN Automotive coating Thailand HMWP for can coating Two-piece can coating(BPA-Free) Scooter coating Eternal Materials Malaysia Myanmar Vietnam Ink for shoes Functional emulsion CAGR, 2020-2025 Emulsion Long-oil Alkyd Laos Philippines 18% Cambodia Functional emulsi
Slide 30: Boost competitions in China
Boost competitions in China New Site in East China： Transformative to Eco- PUD, WB dispersion, • East China Market leads and drives industrial Friendly and WB Fluorocarbon powder resins, PCTFE, and development in China, and also, it's the most critical advanced process market in SR BU. implement • C
Slide 31: Outlook
Outlook Strategy Our competences Provide growth Keep growth With targets that and purpose opportunities in our underpin our Transformation focus domains +Expansion mission Water • Industrial resins based key player in Asia Water- Soluble • Create Shareholder Value High Process technology Solid Reuse
Slide 32: Q&A
Q&A
Slide 33: Thank you for your listening.
Thank you for your listening.
Eternal Materials — Online investor conference hosted by President Securities Corp. 2021 on 6ix