Tsrc Corporation · TWSE:2103
Tsrc — Investor Conference 2020
22 slides from Tsrc's conference presentation, Oct 16, 2020
Slide 1: TSRC – Global Specialty Polymers
2020 TSRC – Global Specialty Polymers Investor Conference, 16th Oct 2020
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. 1H2020 Financial Performance • Edward Wang, CFO 3. TSRC’s Response to Pandemic Challenges – Adapt and • Joseph Chai, CEO Optimize to Emerge Stronger 4. Q&A © 2020 TSRC Corp. All Rights Reserved. Confidential and Proprietary P.3
Slide 4: Introduction
[1] Introduction Thomas Lin, Deputy Spokesperson
Slide 5: 1H 2020 Financial Performance
[2] 1H 2020 Financial Performance Edward Wang, CFO
Slide 6: COVID-19: Navigating Diverse Economic Impact
COVID-19: Navigating Diverse Economic Impact • Pandemic and related containment measures deeply affected world economy differently across regions and sectors • Revenue and profitability faced headwinds amid declining raw material price and end-market slowdown • Performance of investee Sales Volume (
Slide 7: Revenue by Geography
Revenue by Geography • Decline in revenue reflected low raw material price and a challenging market environment - automotive and consumer market slowdown, especially in developed countries • Sales volume edged up 1% YoY with strengthened market position following China’s lead on recovery Americas Eu
Slide 8: Strengthened Position amid Improving Market Dynamic
Strengthened Position amid Improving Market Dynamic • Despite sharp decline in BD price, business dynamic turned favorable with the support of widened NR-BD price gap, and further enhances TSRC’s market competitiveness Unit: US$ Unit: US$ 2,000 1,000 800 1,500 600 400 1,000 200 0 500 (200) (400) 0 (
Slide 9: Major Equity Investment
Major Equity Investment • ISRPL’s performance was impacted by India government’s lockdown measures • Performance of ARL-TSRC saw gradual improvement in 1H 2020 with demand recovery in China • APED continued to deliver stable results ISRPL ARL-TSRC APED 108 40 43 33 30 7 (13) (34) (95) Amount in NT$M
Slide 10: Adapt and Optimize to Emerge Stronger from COVID-19
[3] Adapt and Optimize to Emerge Stronger from COVID-19 Joseph Chai, CEO
Slide 11: TSRC Strategic Objectives and Actions
TSRC Strategic Objectives and Actions • Transformation: Global specialty company Specialty business > 50% • Growth: High value and profitable applications Increase investment in R&D, application, and process technologies • Long Term Sustainability: Strong business portfolio and organization capabili
Slide 12: COVID-19 Caused Significant Impact and Disruptions to Market Demand
COVID-19 Caused Significant Impact and Disruptions to Market Demand Demand Impact Automotive Industrial Medical & Hygiene Consumer Construction Sport (ASM) © 2020 TSRC Corp. All Rights Reserved. Confidential and Proprietary P.12
Slide 13: Effective Execution through Pandemic
Effective Execution through Pandemic • Ensured employees • Continued safe • Maintained strong safety operation of cash flow and global sites financial stability • Provided sufficient & liquidity despite facemask and PPE challenging • Ensured supply market conditions chain and • Redeployed business r
Slide 14: SRD – Strong Performance Leveraging on China Recovery
SRD – Strong Performance Leveraging on China Recovery • Strong sales volume in China offset severe demand destruction outside of China • Leveraging on healthy price spread between Natural Rubber and BD • Optimize earnings across spot, contract, and Formula-based busines segmentation © 2020 TSRC Corp
Slide 15: AMD – Navigate through Massive Demand Destructions
AMD – Navigate through Massive Demand Destructions • Automotive and Sport Shoe market weakness posed tough challenges • Expand coverage at less impacted applications • Accelerate development of new applications and material technologies © 2020 TSRC Corp. All Rights Reserved. Confidential and Proprie
Slide 16: Long Term Investment Remains Intact
Long Term Investment Remains Intact • New high-performance HSBC platform New polymer platforms • Next generation ASM foaming technology and applications • Medical grade SEBS development • Sytrenic viscosity modifier for lubricants • New elastic non-woven materials • New R&D and application lab close
Slide 17: Pandemic Outlook Points to Uneven Recovery
Pandemic Outlook Points to Uneven Recovery Global GDP Growth Projection • Battled economic requires 6% at least 2 years recovery 4% 2% 0% • Market demand -2% '17 '18 '19 '20 '21 '22 '23 '24 recovery varies by end- -4% market and regions -6% Unit: M Global Light Vehicle Sales • Growth momentum 120 Pr
Slide 18: Optimize to Emerge Stronger
Optimize to Emerge Stronger Increase value share of materials for Major thrust into automotive medical and hygiene with total solution approach of polymers, compounds, and Greater health semi-finished Proven Synthetic awareness favors products Rubber business ASM and medical capability applications
Slide 19: Examples
Examples Medical devices e.g. IV bags, tubing, film • Strong growth ~ 5% CAGR for next decade • Move to non-PVC materials • TPE more environmentally friendly and sustainable Elastic non-woven e.g. diaper, • Strong growth ~ 7% CAGR for next 5 years facemask, hygiene products • Wide end-use applicatio
Slide 20: Summary
Summary 1 YTD 2020 2 Adapt and 3 TSRC Vision Business Optimize to Performance Emerge Stronger Business result affected Respond effectively to Maintain the by COVID-19 impact short term challenges. momentum toward our on TSRC end-markets Committed to long term vision to become a investment in Global
Slide 21: Q&A
Q&A © 2020 TSRC Corp. All Rights Reserved. Confidential and Proprietary P.21
Slide 22: Thank You
TSRC CORPORATION