Upc Technology Corporation · TWSE:1313
Upc Technology — Q3 2017 Earnings Presentation
29 slides from Upc Technology's earnings presentation, Nov 13, 2017
Slide 1: UPC Technology Corporation Investor Conference
UPC Technology Corporation Investor Conference 13 November, 2017
Slide 2: Content
CONTENT 1. Company Introduction 2. Development Strategy 3. Financial Performance 4. Q & A 2
Slide 3: UPC Introduction
1. UPC Introduction • Founded：August 1976 • Chairman：Matthew F.C. Miau • President：Yi-Shao Ko • Revenue (Y2016)：NT$42.4 Billion (US$1.31 Billion) • Number of Employees：~1700 • Taiwan Stock Exchange listed (Y1989)：code 1313 Our market covers Taiwan, China, Southeast Asia, Northeast Asia, South Asia,
Slide 4: UPC's Deployment in Asia
UPC’s Deployment in Asia Zhenjiang, Jiangsu Panjin, Liaoning Taizhou, Jiangsu Nanchong, Sichuan UPC Taipei office Taiwan Zhongshan, Guangdong China Linyuan, Kaohsiung UPCHK Zhuhai, Guangdong Kuantan, Malaysia Malaysia Manufacturing/Logistics Center 4
Slide 5: UPC Business
UPC Business Core Specialty Chemical Logistics and Business Business Service Business Phthalic Anhydride Specialty Plasticizer Terminal operation Maleic Anhydride Hydrogenated (UN899) Tank farm storage Fumaric Acid Polymeric (UN600series) Warehouse storage Adipate (DINA, DIDA)
Slide 6: The Supply Chain
The Supply Chain Raw Material UPC product Application Chlorine EDC VCM PVC Ethylene mono alcohols (2EH, INA…) Adipic acid PVC plastic products TMA Plasticizers PTA Alkyd resin, Dyes, Pigments, Paint solvents OX PA Synthetic leather, Polyester Polyol Adhesive, UV coating, Shoe Sole, Rigid Foam Glycol
Slide 7: Global #1 PA and Plasticizer supplier
Global #1 PA and Plasticizer supplier UPC production capacity by product (KTPA) 60% 1,862 Total capacity of 3100 KTPA in end 2017 • Plasticizer : 1862 KTPA • PA : 622 KTPA 20% 622 14% 450 4% 2% 121 52 PLASTICIZER PA PVC UPR.POLYOL MA.FA Global #1 Global #1 7
Slide 8: Logistics Capability in Greater China
Logistics Capability in Greater China Transport and Storage of DG and General cargo Chemical Tank Farm Sites • Taizhou • Zhuhai • Panjin Warehouse Sites • Taizhou • Zhenjiang Road Transportation • Tank/Flexitank container, Packing cargo truck, Liquid/Gas/Powder/Insulation tank • Owned Fleet in
Slide 9: Logistics Capability in Greater China
Logistics Capability in Greater China Transport and Storage of DG and General cargo Jetty capacity Taizhou, Jiangsu Panjin , Liaoning Owned Jetty Owned Jetty • 50,000 DWT • 50,000 DWT • 10,000 DWT (Q3/2017 completed) Zhenjiang, Jiangsu 3rd party Jetty • 30,000 DWT Zhongshan , Guangdong Own
Slide 10: The Marketing Regions of Greater China sites
The Marketing Regions of Greater China sites Northeast China Liaoning Russia North 天津 Northwest China China Japan 石家莊 & Korea Central Sichuan China EastJiangsu China Southwest China South China Guangdong Malaysia 10
Slide 11: The Marketing Regions of Malaysia site
The Marketing Regions of Malaysia site Japan & South China Korea Middle Asia East Africa UPC Malaysia ASEAN New Zealand , Australia 11
Slide 12: 2. Development Strategy
2. Development Strategy 12
Slide 13: The Long-term Development Strategy
The Long-term Development Strategy Growth Strategy Cooperation Competition Strategy Strategy 13
Slide 14: Scope and Scale
Scope Expansion of product categories develop diversified and customer focused products to expand the category Scale Expansion of product capacity use self-production and tolling to fully utilize our production capacity and infrastructure to enlarge the market share 14
Slide 15: Total capacity of 3106 KTPA in end 2017
Total capacity of 3106 KTPA in end 2017 Total capacity of 3496 KTPA in end 2018 unit: KTPA UniHydroTM UN899 + 200KTPA PVC + 150KTPA MA + 40KTPA 15
Slide 16: Our Green Plasticizers
Our Green Plasticizers 類別 產品名稱 TM Hydrogenated UniHydro UN899 Polymeric UN600、UN610、UN615、UN620、UN630、UN640 Terephthalate UN488(DOTP) Trimellitate TOTM、TNOTM、UN380、UN390、UN399 Adipate DOA、DINA、DIDA Maleate DOM, DBM Fumarate DOF Benzoate DEGDB Bio-based • Epoxide ESO • Succinate UN9
Slide 17: UPC begin China's first Hydrogenated Plasticizer plant in June, 2017
UPC begin China’s first Hydrogenated Plasticizer plant in June, 2017 hydrogenation PHTHALATES DINP UniHydroTM UN899 • 1,2-cyclohexane dicarboxylic acid, di-isononyl ester No odor • Odorless Non-toxic • Pass toxicology test Non- • Environmental-friendly benzene plasticizer Low VOCs • Reduce the amoun
Slide 18: The Demand & Trend of UN899
The Demand & Trend of UN899 UN899 upgrade trend of plasticizer market DOTP DINP DEHP (DOP) The plasticizer demand in China is about 4200 KTPA in 2016 UN899 is expected to replace 30% of DOTP market 300 KTPA 18
Slide 19: The advantages of UPC's Taizhou PVC plant
The advantages of UPC’s Taizhou PVC plant • Process Ethylene-based PVC process. No pollution • Energy Steam generated from PA plant at the same site for PVC plant captive use • Raw Close to VCM plant. Feedstock VCM shipped by pipeline Material • Customer Close to PVC processing customers Own 50,000
Slide 20: The PVC Outlook
The PVC Outlook 2016~2018 China PVC Supply/Demand (KTPA) China total PVC capacity 23,125 KTPA • Carbide-based PVC : 83% • Ethylene-based PVC : 17% Rationalize & environmental inspection policy in China the high pollution and high energy consumption carbide-based small PVC plants are expected t
Slide 21: Competition strategy: Cost leadership + Differentiation
(2) Competition strategy: Cost leadership + Differentiation Continuous capacity expansion • Global #1 PA and Plasticizer supplier Cost Multi-sites / Multi-factories / Modularization & High-efficiency leadership factory construction to reduce investment cost & operational risk Integrated produc
Slide 22: Cooperation Strategy: from Competition to Co-opetition
(3) Cooperation Strategy : from Competition to Co-opetition Competition Co-opetition Co-operation Co-opetition with the global leading plasticizer manufacturers in the industry value chain to create a win-win situation RM supply Inbound Factory Outbound Marketing R&D & Logistics Operation Logistic
Slide 23: 3. Financial Performance
3. Financial Performance 23
Slide 24: 2012 ~ 2017 Q3 Consolidated Revenue
2012 ~ 2017 Q3 Consolidated Revenue Revenue (NTD Billion) Oil price (USD/Barrel) 150 Europe Brent Spot Price FOB (Dollars per Barrel) 125 100 75 50 25 0 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 24
Slide 25: 2012 ~ 2017 Q3 Production and Sales Volume
2012 ~ 2017 Q3 Production and Sales Volume 2012~2016 average growth rate (YoY) • Production Qty : +11.8% • Sales Qty : +12.5% KTPA 25
Slide 26: 2017 Q3 YTD Revenue Breakdown by Products
2017 Q3 YTD Revenue Breakdown by Products (%) 26
Slide 27: 2012~2017 Q3 Net Income after Tax & EPS
2012~2017 Q3 Net Income after Tax & EPS NTD Million EPS (NTD ) 27
Slide 28: 2012 ~ 2017 Q3 Capital Expenditures
2012 ~ 2017 Q3 Capital Expenditures NTD Million 28
Slide 29: Thank You
www.upc.com.tw THANK YOU