CTCI Corporation The 1st Investor · 2019. 3. 26. · Performing CEOs list for 2 years in a row...
Transcript of CTCI Corporation The 1st Investor · 2019. 3. 26. · Performing CEOs list for 2 years in a row...
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CTCI Corporation
The 1st Investor
Conference, 2019
2019.03.26
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Agenda
• Review of the Past 40 Years
• Operation Review – Year 2018
• Business Outlook
• Financial Highlights – Year 2018
2
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Review of the Past 40 Years
3
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Copyright © 2016 CTCI All Rights Reserved.
0.8
101.7
0
20
40
60
80
100
120
1979 2018
New Contract Amount
1.4
208
0
50
100
150
200
250
1979 2018
Backlog
0.8
76.5
0
10
20
30
40
50
60
70
80
90
1979 2018
Total Asset
0.3
20.6
0
5
10
15
20
25
1979 2018
Total Equity
4
The group market cap increases five times from NT$9.9 billion to NT$50 billion since CTCI was listed in 1993.
Unit: NT$, billionCompany Review
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Copyright © 2016 CTCI All Rights Reserved.
Company Review
5
Upgrading of
EPC capability
Expand the work scope from engineering design to EPC lump sum
contacting
Diversification of
business
Business lines diversified from hydrocarbon to power, transportation,
environmental, intelligent control and industrial
Globalization of
operation
Operation expands to 20 countries globally through CTCI’s 56
companies (including branches) worldwide
Recognition of
Market Presence
The leader of EPC contractors in domestic market, and is listed in
Top 100 EPC contractors in global market
Competitiveness
of Turnkey
Contracting
Is capable of bidding EPC contract alone up to US$ 1 billion in
contract value
Sustainable
operations
To be the most reliable global engineering services provider, fulfilling
corporate social responsibilities with total participation
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Operation Review – Year 2018
6
New Record
New First
New Honors
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85.6
44.4
101.7
0
20
40
60
80
100
120
2016 2017 2018
New Contracts 203.2
166.3
208.0
0
50
100
150
200
2016 2017 2018
Backlog
7
+129%
+25%
New Record
Unit: NT$, billion
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Taiwan 60%
Southeast Asia22%
China6%
United States 6%
Middle East 3%India 3%
Taiwan 55%
China13%
Southeast Asia 12%
United States 12%
India 6%Middle East
2%
The Breakdown of New Contracts and Backlog
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By Region By Business Area
2018 N
ew
Co
ntra
cts
2018
Backlo
g
Hydrocarbon54%
Industrial20%
Environmental 15%
Transportation 7%
Power 2%Other 2%
Environmental 37%
Hydrocarbon33%
Power 10%
Industrial10%
Transportation 9%
Other 1%
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New First
Taiwan
• Taichung Power Plant Coal Handling System
Improvement Project★The first project of Coal Handling System
• Taoyuan City Biomass Energy Center BOT
Project ★The first integrated waste management facilities in Taiwan
• CPC 3rd LNG Terminal Tank Project
• Taipei MCT Wanda Line System E&M Project
• Kaohsiung Linhai Waste Water Reclamation
Plant BTO ProjectThe first project in Taiwan that combines public wastewater
treatment plant and large-scale reclamation plant
China
• Gulei EVA ProjectThe first overseas project with CTCI’s investment in the
hydrocarbon field
• TFT-LCD High-End Cleanroom ProjectThe first project of the high-end clean room system
India
• Adani Group LNG Terminal (Re-gas) Project Become the EPC contractor with the largest market share
in India in LNG receiving terminal field
Middle East
• Qatar Petrochemical Company EP1 Machines
Replacement Project
★Project with contract amount over NT$10 billion
Major Projects Awarded in 2018
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Southeast Asia
• PTT Group LNG Receiving Terminal Project★The highest contract amount in Thailand market;
the first cooperation with SAIPEM, the EPC leader in Italy
United States
• A cross-border petrochemical plant contract in
JV form★The highest contract amount in USA market; CTCI won the
project with modularization engineering
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New honorsThe CommonWealth Magazine Top 2,000
Enterprises SurveyENR Magazine Rankings
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Company Sector 2017
CTCI
Contractor 1
Top 50 Most
Profitable Companies22
Top 650 Service
Enterprises25
Company Sector 2017
CTCI SEC Contractor 41
CTCI MAC Contractor 39
ECOVEInvestment Holding
Company8
ECOVE ESC Environmental Services 2
CTCI ASIIT Equipment Sales and
Services33
Sector 2018
International Design Firms 75
International Contractors 76
Global Design Firms 146
Global Contractors 126
Industry Item 2018
ManufacturingTop International
Contractors36
Industrial ProcessTop International
Design Firms45
Steel and Non-
Ferrous Metals
Top International
Contractors19
Top International
Design Firms14
Refinery and
Petrochemical Plant
Top International
Contractors16
Top International
Design Firms12
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Won the REBRAND 100®
Global Awards for successful
brand transformation
A member of DJSI component
for 4 consecutive years
Group Chairman selected by
Harvard Business Review
within Taiwan’s 50 Best
Performing CEOs list for 2
years in a row
Continues to be listed by ENR
within Top 100 of International
Engineering Companies
CTCI Corp., ECOVE, CTCI ASI
won the 2018 Excellence in
Corporate Social Responsibility
Award by CommonWealth
Magazine
First Taiwan company certified
to ISO 45001:2018
international occupational
health and safety
management system standard
CTCI and ECOVE listed by
the newly launched Taiwan
Sustainability Index
Honored with 14 Taiwan
Corporate Sustainability
Awards, including the highest
honor, Top Ten Domestic
Corporate in Taiwan
SGS
ISO 9001 Plus Award
“QMS Operation Process
Management Benchmark”
ISO 14001 Plus Award
“EMS Social Responsibility and
Sustainable Business Performance
Benchmark”
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Business Outlook
12
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Government Energy Policy:
The Structure of Electricity Generation:
Business Outlook-Taiwan
CTCI PowerPoint Master Deck
13
Coal-fired Gas-firedRenewable
energyNuclear Others
2018 35% 46% 6% 10% 3%
2025 27% 50% 20% 0% 3%
Coal
ReductionGas
Increase
Green
Energy
Nuclear
Free
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The Opportunities under the Government Energy
Transformation Policy
CTCI PowerPoint Master Deck
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• Coal and Air Pollution Reduction: TPC will invest NT$62.2 billion in air
pollution control systems
• Increase of Gas: Expand gas-fired units (12GW), 7 LNG receiving terminals,
and 31 tanks
• Green Energy:
The capacity of photovoltaic power will be expanded from 2.84 GW in 2018
to 6.5GW in 2020 and 20GW in 2025
The capacity of wind power will be expanded from 745MW in 2018 to 1,790MW in 2020
Nuclear Free: Taiwan Nuclear Power Plants (I, II, III) decommissioning or
extension work
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Major Potential Projects (NT$ 160 billion)
Taiwan
Hydrocarbon
• LNG Receiving Terminal: Taichung, Yung-An
• CPC Tank Farm Project
• FPC Talin Ethylene Tank Project
Power & Energy
• Gas-fired power plant expansion projects: Taichung, Hsin Ta
• IPP gas-fired power plant expansion projects: Kuo-Kuang
• Offshore Wind Farm
• Air quality control system: Taichung power plant and other
IPPs
• Waste to Energy Project:Nantou Green Energy Center, Southern Taiwan Science Park, Guan Yin Industrial Zone
• Wastewater Reclamation Plant Project: Taoyuan Northern,
Southern Taiwan Science Park
Transportation
• Rapid Transit System: Taipei MCT Wanda Line Phase II
System E&M Project, Taipei MCT Circular Line Phase II
System E&M Project
• People Mover System for Taoyuan Airport Project
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Major Potential Projects (NT$ 180 billion)
• KSA: Yansab EG-II Project, Aramco Ras Tanura
Diesel Hydrotreating Project, the largest Oil-to-
Chemical Plant in the world, Cogen Power Plant
• UAE: Gasoline & Aromatics Project
• Qatar: LNG Export Facility
• Kuwait: KIPIC Petrochemical Complex
• Algeria: Refinery Projects
• Since OPEC production targets were reduced and the economic sanctions against
Iran were imposed by the United States, the oil price is expected to be more stable in
2019, and the owners in the Middle East therefore restart the investments on new
capacities of downstream sector
• Governments in the Middle East plan to invest in large petrochemical complex,
integrating upstream and downstream sectors to improve their profitability
• To meet the International Maritime Organization’s new regulation of Low-Sulphur Fuel
Oil (LSFO) in 2020, owners in the Middle East shall upgrade their refinery facilities to
produce LSFO for marine usage
Outlook – Middle East and Africa
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Major Potential Projects (NT$ 110 billion)
• Thailand: IRPC Maximum Aromatics (MARS) Project,
PTTGC Aromatics Reconfiguration Project, PTTLNG 2nd
Terminal Expansion Project and 3rd LNG Receiving Terminal
Project, Bangkok MRT Project, ASU Project
• Vietnam: LNG Receiving Terminal Project, MRT Project,
Gas-fired Power Plant, Waste to Energy Project
• The Philippines: Waste to Energy Project, Gas-fired Power
Plant, LNG Receiving Terminal Project
• Malaysia: Melaka Refinery SRU-3 and Euro 5 Projects, LRT,
Gas-fired Power Plant, Waste to Energy Project
• Singapore: SABIC Petrochemical Plant, MRT Project
• India: Refinery and Petrochemical Projects
• With the benefit of demographic dividend area in Southeast Asia and India, the demand for
petrochemical products remains strong, bringing in more investments in new and
expansion of large refinery plants
• Cross-border oil companies invest in new capacity in terminal market to reduce costs
Outlook– Southeast Asia and India
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Major Potential Projects (NT$ 30 billion)
• Middle East petrochemical company: petrochemical
project in Texas
• Formosa group: petrochemical projects in
Louisiana
Outlook-The United States
• Driven by cheap shell gas, the booming market in petrochemical industry continues
• Investments in new capacity by cross-border oil companies are still going strong
• Strive for FEED roll-over to EPC projects
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Major Potential Projects
(NT$ 10 billion)
• China: ExxonMobil, BASF and SABIC
Petrochemical Complex Projects,
Waste to Energy Project
• Russia: PTA/PET detail design work
• Kazakhstan PTA/PET FEED work
• There are abundant gas and petroleum resources in Russia, Kazakhstan and Uzbekistan,
but the hydrocarbon business usually need financing support
• CTCI Beijing will cooperate with China Export & Credit Insurance Corporation (SINOSURE)
to follow up the projects in “One Belt One Road” Initiative
Outlook-China and CIS
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Potential Bidding Opportunities
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Potential Bidding Amount in next 12 month: NT$499 billion
By Region By Business Area
Middle East37%
Taiwan 33%
Southeast Asia 18%
United States 6%
India 4%
Other 2%
Hydrocarbon70%
Power 19%
Transportation5%
Environmental4%
Industrial 2%
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2018 Financial Highlights
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NT$, billion
Consolidated Sales Revenues and Breakdown
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Taiwan 33%
Southeast Asia30%
Middle East25%
China 7%
United States 4%India 1%
Hydrocarbon52%
Power 21%
Environmental10%
Industrial 8%
Transportation5%
Other 4%
70.5 71.6
64.1
8.8%
7.1% 7.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
10
20
30
40
50
60
70
80
2016 2017 2018
Sales Revenue Gross Margin
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2018 Consolidated Income Statement
Unit: NT$, Thousand
2018/12/31 2017/12/31 YOY
Sales Revenues 64,069,542 100% 71,606,604 100% -10.5%
Operating costs (59,469,789) -92.8% (66,495,104) -92.9% -10.6%
Gross Profit 4,599,753 7.2% 5,111,500 7.1% -10.0%
Operating expenses (1,883,975) -2.9% (2,096,474) -2.9% -10.1%
Operating income 2,715,778 4.2% 3,015,026 4.2% -9.9%
Total non-operating income
and expenses349,495 0.5% 976,327* 1.4% -64.2%
Profit before income tax 3,065,273 4.8% 3,991,353 5.6% -23.2%
Income tax expense (765,210) -1.2% (701,255) -1.0% 9.1%
Profit for the period 2,300,063 3.6% 3,290,098 4.6% -30.1%
Profit attributable to Owners
of the parent1,827,537 2.9% 2,805,348 3.9% -34.9%
Total basic earnings per share 2.40 3.68*
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*This includes an one-off gain of NT$ 959 million, which is equivalent to basic earnings of NT$1.26 per share.
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2018 Consolidated Balance SheetUnit: NT$, Thousand
2018/12/31 2017/12/31
Current assets* 56,534,559 74% 54,762,209 78%
Non-current assets 19,962,774 26% 15,305,780 22%
Total assets 76,497,333 100% 70,067,989 100%
Current liabilities 51,420,086 67% 43,960,316 63%
Non-current liabilities 4,451,088 6% 5,067,516 7%
Total Liabilities 55,871,174 73% 49,027,832 70%
Equity attributable to owners of
the parent17,458,729 23% 17,952,032 26%
Non-controlling interest 3,167,430 4% 3,088,125 4%
Total equity 20,626,159 27% 21,040,157 30%
Total liabilities and equity 76,497,333 100% 70,067,989 100%
*Cash and cash equivalents:NT$15.1 billion
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Dividend Payout
25
2.65 2.91
3.22 3.32
2.22
2.51 2.69
2.92
3.68
2.40 2.37 2.42
2.76 2.84
1.99 2.23
2.40 2.60
3.23
2.26
89%
83%86% 85%
90% 89% 89% 89% 88%
94%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EPS Cash DPS Cash Dividend Payout Ratio(%)Unit: NT$
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