TSRC Corporation · TWSE:2103
TSRC — 2023 TSRC Investor Conference
23 slides from TSRC's conference presentation, Nov 15, 2023
Slide 1: TSRC – Global Specialty Polymers
2023 TSRC – Global Specialty Polymers Investor Conference, November 15th, 2023
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 Sep Year-to-date Financial • Edward Wang, CFO performance 3. Business Results and Market • Joseph Chai, CEO Outlook (2023 - 2024) 4. ESG Updates • Joseph Chai, CEO 5. Summary • Joseph Chai, CEO 6. Q&A 2023 TSRC Confidential and Proprie
Slide 4: Introduction
[1] Introduction Thomas Lin, Deputy Spokesperson
Slide 5: 2023 Sep Year-to-date Financial Performance
[2] 2023 Sep Year-to-date Financial Performance Edward Wang, CFO
Slide 6: YTD Sep 2023 Financial Highlights
YTD Sep 2023 Financial Highlights • Soft YTD financial performance with moderate SRD and declined AMD portfolio, impacted by high inventory and low utilization rate amid weak demand. In NT$M YTD Sep’22 YTD Sep’23 YoY Revenue 26,357 23,545 -11% Gross Profit 4,724 2,340 -50% Operating Profit 2,441 572
Slide 7: YTD Sep Revenue by Geography
YTD Sep Revenue by Geography • YoY Geographic mix unchanged as EU and US supported by higher SRD volume. 26,357 23,545 2,873 2,580 3,937 Others 3,584 Europe Americas 18,981 Asia 16,944 YTD Sep 2022 YTD Sep 2023 Amount in NT$M 2023 TSRC Confidential and Proprietary P.7
Slide 8: YTD Sep Major Equity Investment
YTD Sep Major Equity Investment • ISRPL performance hit by soft demand and compressed spread. • ARL-TSRC profitability slid due to intensified competition since 2H 2022 amid weak demand. • APED profitability recovered amid declining coal price. ISRPL ARL-TSRC APED 253 232 154 56 25 (36) YTD Sep 2022
Slide 9: Industry dynamics remain favorable
Industry dynamics remain favorable • YTD profitable NR-BD gap (US$400/MT) supports Synthetic Rubber performance. US$/MT NR-BD price gap (RHS) ICIS BD CFR NEA (LHS) 2,000 1,200 1,800 1,000 1,600 800 1,400 600 1,200 400 1,000 200 800 600 0 400 (200) 200 (400) 0 (600) Jan-21 Jan-22 Jan-23 Jan-18 Jan-19
Slide 10: Business Results and Market Outlook (2023 - 2024)
[3] Business Results and Market Outlook (2023 - 2024) Joseph Chai, CEO
Slide 11: Extremely challenging 2023 for TSRC and other chemical companies
Extremely challenging 2023 for TSRC and other chemical companies ♦ Weak demand across all regions and markets • Tepid growth in mainland China • Manufacturing activities remained at low level • Continued destocking for most part of 2023 ♦ Cost inflation and excess capacity led to margin compression.
Slide 12: Extremely challenging 2023 for TSRC and other chemical companies (con't)
Extremely challenging 2023 for TSRC and other chemical companies (con’t) ♦ Synthetic Rubber business faired better than Advanced Materials business ♦ Several product lines (e.g. SIS, BR, NBR) experienced substantial price erosion and volume reduction. ♦ Observing some stability on destocking actions
Slide 13: 2024 outlook remains challenged and uncertain
2024 outlook remains challenged and uncertain ♦ The demand growth in major developed economies remain stagnated due to elevated cost pressure, geopolitical tensions, and excess capacity ♦ Gradual recovery in mainland China amidst persistent structural challenges ♦ Tough market competition expected t
Slide 14: 2024 outlook remains challenged and uncertain, but
2024 outlook remains challenged and uncertain, but ♦ Pocket of stable growth potentially in Southeast Asia ♦ Expect some level of demand recovery from Thermoplastic elastomer (TPE) along with stable Synthetic Rubber demand 2023 TSRC Confidential and Proprietary P.14
Slide 15: TSRC maintained concerted effort to defend business and pursue growth
TSRC maintained concerted effort to defend business and pursue growth ♦ Maintain optimal balance between production rate, customer needs, and inventory control ♦ Actively pursue new applications and product performance upgrade opportunities ♦ Discipline OPEX and CAPEX management 2023 TSRC Confidenti
Slide 16: TSRC maintained concerted effort to defend business and pursue growth
TSRC maintained concerted effort to defend business and pursue growth ♦ Leverage technological success in SSBR to expand position in EV Tire ♦ Complete Shenhua and ARL-TSRC relocation project on-time and on-budget ♦ Engaged in exploring strategic initiatives to deliver growth beyond 3-5 years 2023 T
Slide 17: ESG Updates
[4] ESG Updates Joseph Chai, CEO
Slide 18: Key ESG actions/milestones in 2023
Key ESG actions/milestones in 2023 ♦ Onsite solar panel Installation in Dashe (Kaohsiung) and Shanghai ♦ ISCC+ certification for Kaohsiung plant ♦ Completed product carbon footprint certification ♦ Commercialized and sale of new SSBR for EV and high flow SEBS for Medical ♦ Stepped up community engag
Slide 19: Some ESG accolades in 2023
Some ESG accolades in 2023 ♦ Awarded “Best Companies to Work For” in HR Asia Awards ♦ TSRC 2022 Sustainability Report received ESG award by SGS ♦ Maintained Taiwan Corporate Governance Rating at top 6- 20% 2023 TSRC Confidential and Proprietary P.19
Slide 20: Summary
[5] Summary Joseph Chai, CEO
Slide 21: Summary
Summary 01 02 03 ♦ Very challenging ♦ 2024 outlook is ♦ Made concrete business climate expected to be progress in ESG in 2023 which challenged with plan and negatively demand improvement in impacted TSRC’s stabilization and business financial pockets of growth positioning performance potentials 2023
Slide 22: Q&A
Q&A 2023 TSRC Confidential and Proprietary P.22
Slide 23: Thank You
TSRC CORPORATION