China Petrochemical Development Corporation · TWSE:1314
China Petrochemical Development — H1 2022 Earnings Presentation
22 slides from China Petrochemical Development's earnings presentation, Oct 14, 2022
Slide 1: Investor Conference
Investor Conference Respect．Innovation．Care．Excellence．Green Business 2022/10/14
Slide 2: Disclaimer
Disclaimer • This presentation is for informational purposes only, contains preliminary financial and other information about China Petrochemical Development Corporation and is subject to updating, revision, amendment and completion This presentation does not and is not intended to constitute or con
Slide 3: Agenda
I. Industry and Market Overview II. Operational Performance III. Major Investment Status IV. ESG Performance V. Q & A
Slide 4: Industry and Market Overview
Industry and Market Overview Respect．Innovation．Care．Excellence．Green Business Effective integration of the Petrochemical Industry Expand new business in Land Development
Slide 5: Main Products CPL & PA6
【2022 YTD】 Main Products CPL & PA6 • Russia-Ukraine War impacts regional logistics USD/MT CPL Asia PA6 Asia • Inflation and rising interest rates result in weak 3000 【2020】 downstream demand Covid-19 outbreak stalled 2500 downstream demand 2000 1500 Maintaining a conservative outlook 1000 【2021】 Eas
Slide 6: Main Products AN
【2022 YTD】 Main Products AN • Global new production capacity increased by 1.04 million tons USD/MT AN_Asia • War and inflation led to weak downstream demand 3000 【2020】 Q2 seasonal demand and 2500 recovery of oil prices lifted profitability 2000 1500 【2021】 H1: Tight supply by US winter Maintaining
Slide 7: Trends on Major Feedstock
【2022 YTD】 Benzene： fluctuating with oil prices Trends on Major Feedstock Propylene： Q1 High oil prices push up prices Q2 Demand shrank drove down prices but remain relatively high NH3：Q1~Q3 Prices continue to stay high due to natural gas prices and the Russia-Ukraine war USD/Ton 【2020】 【2021】
Slide 8: 2022H1 Operational Performance
2022H1 Operational Performance Respect．Innovation．Care．Excellence．Green Business Effective integration of the Petrochemical Industry Expand new business in Land Development
Slide 9: Production & Sales (2020~2022)
2022H1 Production & Sales CPL is affected by war and inflation, downstream demand is weak (2020 ~ 2022) Units：10,000 tons AN Units：10,000 tons CPL 30 27 30 26 28 Nylon6 24 20 21 20 20 17 17 11 10 10 10 10 10 0 0 2020 2021 2022H1 2020 2021 2022H1 AN Production AN Sales (including Trade Volumes) Note:
Slide 10: Scheduled maintenance plan & capacity utilization
Scheduled maintenance plan & Dashe (AN) Utilization Rate capacity utilization CPDC 100% 100% 100% 95% 82% 97% Toufen(CPL) Utilization Rate (Note 1) Headquarters 73% 100% 80% 90% 85% 81% Annual 80% 75% Toufen(CPL) 60% maintenance April-May Annual maintenance 40% 60% 40% 20% 40% Annual maintenance Dou
Slide 11: Revenue Mix
Revenue Mix 2022H1 Demand drop drove down AN prices compared to 2021 H1 The China subsidiary produces and markets PA6 【Change in Revenues from past 2 years】 【2021 Revenue Mix】 Units： OPP NTD100million 2021H1 2022H1 % Chg 1% Subsidiary& Others CPL 42 41 -2% CPL 20% PA6 24 24 0% 27% AN 74 58 -22% AN O
Slide 12: Quarterly Financials
2021 Profit recovery from the ease of pandemic Quarterly Financials 2022H1 Rising raw material costs affect profitability Units：NT$ 100 millions Operaing Income Net Income Sales 20 110 92.4 93.9 100 12.6 15.4 90.9 15 90 11.8 81.4 74.4 73.8 80 10 70 6.6 5.5 4.4 60 5 2.6 2.2 50 40 0 30 (5) (3.3) 20 (4
Slide 13: Condensed P&L
2021Profit recovery from the ease of pandemic Condensed P&L 2022H1 Cost spikes erode profits Compared Units：NT$ 2019 2020 2021 2022H1 2021H1 with % 100 millions 2021H1 Operating 296 176 352 155 167 -12 -7% Revenue Gross Profit 16 0.4 51 2.8 30 -27.2 -91% Operating -4 -18 25 -9.5 18 -27 -153% Income
Slide 14: Balance Sheet
2022H1 Balance Sheet Dividend on Investment ↑ Current Assets↑ financing ↑ Dividends Payable↑ Units： NT$100millions 2019 2020(note) 2021(note) 2022Q1 2022Q2 Total Assets 965 1,048 1,352 1,363 1,370 Current Assets 240 271 573 644 653 Non-current Assets 725 777 779 719 717 Total Liabilities 293 340 549
Slide 15: Selected Ratios
Selected Ratios 2022H1 2019 2020 2021 2022H1 Explanation Debt Ratio 30% 32% 41 % 43% Financing ↑ Current Dividends on 27 4% 31 0% 27 7% 285% Ratio Investment ↑ Net Profit 6% 4% 1 0% -5% Margin ROA (%) (note 1) 3% 1% 4% -0.62% Production Costs ↑ ROE (%) (note 2) 4% 2% 8% -2.1 4% Note: 1. Excluding in
Slide 16: Status of Major Investment
Status of Major Investment Respect．Innovation．Care．Excellence．Green Business Effective integration of the Petrochemical Industry Expand new business in Land Development
Slide 17: Petrochemical Business Plan
Petrochemical Business Plan Kaohsiung Intercontinental Terminal： • NT$3.2 billion total investment in three phases • The progress of both the 1st and 2nd phase has reached 80~90%; Expected completion in 2023. Miaoli Fine Chemicals Plant： • NT$3.8 billion investment • Investment in 2 phases, cons
Slide 18: Land Development
Land Development Core Pacific Plaza： • Underground： Demolition completed in July 2022 • Expected to receive construction permits in 2022 Q4. Expected Construction Start：2023 H1 Land Development in Kaohsiung ： • After the complete urban development plan for the New Asia Bay Area is announced, dev
Slide 19: ESG Performance
ESG Performance Respect．Innovation．Care．Excellence．Green Business Effective integration of the Petrochemical Industry Expand new business in Land Development
Slide 20: ESG Sustainability
High Quality Standards and Regulatory Compliance Climate Change Adaptation Publish sustainability report 遵循依規唯有質量 Analyze risks related to climate according to GRI and SASB 共 change using the TCFD framework Standards.綠色空間營運 Participate in various domestic 創 Climate change and energy manageme
Slide 21: Q & A
Q & A Respect．Innovation．Care．Excellence．Green Business Effective integration of the Petrochemical Industry Expand new business in Land Development
Slide 22: Website and CPDC Spokesperson
Website: https://www.cpdc.com.tw CPDC Spokesperson: Direct Line: 02-8787-81 87 x8370 Respect．Innovation．Care．Excellence．Green Business investors@cpdc.com.tw 22
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