Post on 30-Apr-2020
UPC Technology CorporationInvestor Conference
13 November, 2018
2018 UPC Technology Corporation Investor Conference
CONTENT
1. Company Introduction
2. Development Strategy
3. Financial Performance
4. Q & A
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Our market covers Taiwan, China, Southeast Asia, Northeast Asia, South Asia, USA, Canada, the Middle East and New Zealand.
> 10,000 customers globally
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• Founded:August 1976
• Chairman:Matthew F.C. Miau
• President:Yi-Shao Ko
• Revenue (Y2017):NT$50.6 Billion (US$1.64 Billion)
• Number of Employees:~2000
• Taiwan Stock Exchange listed (Y1989):code 1313
Core
Chemicals
Specialty
Chemical
Logistics Service
1. UPC Introduction
2018 UPC Technology Corporation Investor Conference
China
Taiwan
Malaysia
UPC’s Deployment in Asia
Manufacturing/Logistics Center
Taizhou, Jiangsu
Zhongshan, Guangdong
Zhenjiang, Jiangsu
Zhuhai, Guangdong
Linyuan, Kaohsiung
UPC Taipei office
UPCHK
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Panjin, Liaoning
Nanchong, Sichuan
Kuantan, Malaysia
2018 UPC Technology Corporation Investor Conference
Phthalic Anhydride
Maleic Anhydride
Fumaric Acid
PVC Resin
General Plasticizer Phthalate
• DEHP• DNOP• DINP• DIDP • DPHP• DBP• DIBP
Terephthalate (DOTP)
Trimellitate
(TOTM, TNOTM)
Adipate (DOA)
UPC Business
Specialty Plasticizer
Hydrogenated (UN899)
Polymeric (UN600series)
Adipate (DINA, DIDA)
Benzoate (DEGDB)
Maleate (DOM, DBM)
Fumarate (DOF)
Bio-based
• Sebacate (DOS, DBS)
• Citrate (ATBC)
• Epoxide (ESBO)
• Succinate (UN9429)
UPR
Polyester Polyol
Fatty Ester
Lubricant Ester
Terminal operation
Tank farm storage
Warehouse storage
Transportation
Import / Export handling service
Trading
Engineering
Energy Service
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Core
Business
Specialty Chemical
Business
Logistics and
Service Business
2018 UPC Technology Corporation Investor Conference
The Supply Chain UPCproduct
Raw Material
Application
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Global #1 PA and Plasticizer supplier
2018 UPC Technology Corporation Investor Conference
Note: 1. The production capacity of Plasticizer is on the basis of the DEHP production capacity.2. The production capacity of Plasticizer and PA includes the volume of captive use .
2. DEVELOPMENT STRATEGY
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Plasticizer + 120 KTPA
PVC + 150 KTPA
Unit: KTPA
2,500
2,000
1,500
1,000
500
Capacity in end - 2018
Expansion capacity in 2019
Total capacity of 3410 KTPA in end 2018Total capacity of 3680 KTPA in end 2019
2018 UPC Technology Corporation Investor Conference
PVC Integration by Feedstock in 2017 (China)
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The PVC Outlook
Source:IHS / UPC (November 2018)2018 UPC Technology Corporation Investor Conference
Global demand for PVC is continuously growing and the capacity expansion can not keep up with the growth for demand. IHS report forecasted that the supply for PVC will still be tight.
Growth for global demand for PVC is 5.3% per year, and for demand in Asia and China is 6.3% per year.
Demand for PVC in China is about 17.7 million tons per year on 2017. The high pollution and high energy consumption carbide-based PVC plants are strictly limited to add new capacity and force by central Gov. to be phased out in China.
UPC will continue to expand PVC capacity in China and to increase long-term competitive advantage by vertical integration.
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The PVC Outlook
2018 UPC Technology Corporation Investor Conference
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Global Demand of Plasticizer: 8550KTPA
The Plasticizer Outlook
2018 UPC Technology Corporation Investor Conference
2017 Global plasticizer demand distribution
Source: UPC (November 2018)
Continues growth of global PVC demand driving the demand of plasticizers to increase.
World demand for plasticizers is continuously growing at a rate about 3% per year, and the growth for plasticizers in Asia and China is about 6.3% per year.
In 2017, the total demand for plasticizers in the China market is 4.6 million tons, accounting for 54% of the global market, with a growth rate about 6.3% over the past five years.
Phthalate plasticizers accounted for 65% of the world demand of plasticizers in 2017. Meanwhile, the demand for non-phthalate plasticizers is growing rapidly, including:• UN899• Bio-based plasticizer(incl. ESBO/EFAME…etc.)• Polymeric Plasticizer.. etc.
World consumption of non-phthalate plasticizers is forecasted to grow at an average annual rate about 5.8%.
UPC continuously develop non-phthalate plasticizers and expand the capacity to keep leading position in the plasticizer market.
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The Plasticizer Outlook
3. Financial Performance
2013 ~ 2018 Q3 Consolidated Revenue
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2012 ~ 2017 Q3 Production and Sales Volume
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2018 Q3 YTD Revenue Breakdown by Products (%)
29.36.6
Unit: Billion (NTD)
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2012~2017 Q3 Net Income after Tax & EPS
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2013 ~ 2018 Capital Expenditures
Billion(NTD)
www.upc.com.tw
THANK YOU
UPC Technology Corporation