Nan Ya Plastics

2018 1H

Operations & Performance

Sept. 2018

• Overview

• Financial Highlights

• Capacity Expansion Plan

• Q & A

Agenda

OverviewHighlights

1

Market

Capitalization

Sales

Revenue

Worldwide

Distribution

Total number of Plants 99

Number of Employees 33,430

� Market Capitalization

NT$ 662 billion (Sept. 2018)

� The 7th largest company in

Taiwan in terms of market

capitalization

� NT$ 306.1 billion

(Y2017, not include Nanya Tech. Co.)

� Sales breakdown

-15% in plastics

-29% in chemicals

-36% in electronics

-19% in polyesters

� Plant numbers

-53 in Taiwan

-41 in China

-5 in US

OverviewLeading market positions for capacity

2 81

2

� Plastics processing

� Epoxy resin

� Glass yarn

� Glass fabrics cloth

� Copper foil

� Copper clad

laminates

� EG � Polyesters

4

OverviewHistory

3

Nan Ya USA&America Co.

1979

1986

1995

19961969

Plastics Processing

1958 1999�Texas�Louisiana�South Carolina

Nanya Tech Co. Chemicals

PolyestersElectronics

& Nan Ya PCB Co.

Investing in

China

� Xiamen� Guangzhou� Nantong� Kunshan� Huizhou� Ningbo

OverviewMajor Businesses

Electronics

Polyesters

Sales breakdown in 2017

Plastics

Chemicals

PVC Sheeting, PVC Rigid

Film, PU Leather, PVC

Rigid Pipe & Fittings,

Window & Door Frames,

Films, Engineering and PVC

Compounds, PP Synthetic

Paper

EG, BPA, 1,4BG, DEHP,

PA, 2EH, INA, MA

Glass Yarn, Glass Fabrics

cloth, Epoxy Resin,

Copper Foil, Copper Clad

Laminate, Printed Circuit

Board

Polyester Staple Fiber,

PET Resin, Filament,

PET Film

15%

29%

36%

19%

Taiwan

China & Others

USA 10%

61%

29%

Taiwan

ChinaUSA

Taiwan

China

5%

88%

7%

40%

60%

52%

45%

3%

4

China & Others

USA

Taiwan

Financial HighlightsConsolidated Revenue (IFRS)

(NT$ billion )

5

� Revenue in 2017 increased 11.2% YoY due to:

Prices of chemicals and electronic materials had risen sharply, and the

revenue raised significantly

���� Revenue in 2018 1H increased 14.9% YoY due to :

Industry is getting better, demand of products increased significantly,

crude oil prices rise, leading to sales volume and price also raised up

Revenue in the first half of 2018 achieve highest record

Financial HighlightsPre-tax Income

6

� 16.6% YoY increase in 2017 pre-tax income due to:

1. Profit from chemicals and electronic materials increased significantly

2. Equity income increased by NT$4.0bn YoY :

(1) Nanya Tech +NT$5.1bn (2) MLP -NT$0.9bn

� 2018 1H pre-tax income increased by 47.0% YoY due to：：：：

1. Core business income increased by 72.5% YoY, mainly due to sales volume and price increased of chemicals

2. Equity income increased by NT$4.8bn YoY :

(1) Nanya Tech +NT$2.3bn (2)FPCC +NT$2.1bn

(NT$ billion )

Financial HighlightsRevenue Breakdown

7

2017 Net Sales NT$ 306.1 billion

2017 Sales Breakdownby Geography

� Revenue of chemicals and electronic materials increased due to the strong demand, the sales volume and price raised up

� Main revenue contribution in the next few years is still driven by chemicals and electronic materials

� Mainland China remains the most important market, accounting for

55% of total overseas in 2017

Mainland China38.5%

Domestic30.0%

America13.3%

Other Asia12.8%

EU2.2%

Others3.2%

Electronics36.2%

Chemicals28.7%

Polyesters18.5%

Plastics14.6%

Others2.0%

Financial HighlightsRevenue Breakdown by Product Segment

8

2017 1H Net Sales NT$ 146.8 billion

2018 1H Net Sales NT$ 168.7 billion

� Revenue in 2018 1H increased 14.9% YoY

� Demand of chemicals and polyesters increased, the sales volume and price

raised up, market of electronic materials is thriving.

Electronics 34.7%

Chemicals 29.9%

Polyseters 20.3%

Plastics 13.5%

Others 1.7%

Electronics 35.4%

Chemicals 28.8%

Polyseters 18.7%

Plastics 15.1%

Others 2.0%

Financial HighlightsOperating Profits Breakdown by Product Segment

9

Operating Profits Operating Margins

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2Q17 3Q17 4Q17 1Q18 2Q18

16.1% 11.1% 7.5% 9.8% 9.9%

26.4%47.7%

41.2%51.0% 50.6%

54.5%36.0%

48.4%31.8% 28.0%

4.0%2.4%

4.7% 8.0%11.3%

-1.0%

2.8%

-1.7%-0.6%

0.2%

Plastics Chemicals Electronics

Polyester Others

8.3%7.5%

5.3%

8.1%

7.5%7.0%

16.6%

14.0%

18.4%17.6%

11.9%

9.6%

12.9%

10.2%

8.2%

1.7% 1.3%2.4%

4.4%

5.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2Q17 3Q17 4Q17 1Q18 2Q18

Plastics Chemicals

Electronics Polyester

10

Business OverviewCapacity Expansion Plan

Area Product UnitAnnual Capacity Completion

Datecurrent Expansion Increase%

Taiwan

Pepa Synthetic

PaperKMT 65 22 34 2019/3

Copper Foil KMT 36 18 50 2019/7

PET Film KMT 108 13 12 2020/2

Polyester Release

FilmKM2 144,000 156,000 108 2019/6

Mainland

China

PVC Leather KYD 32,400 9,000 28 2019/11

Aluminium

Laminated FoilKM2 0 13,536 100 2019/6

Copper clad

laminateKSH 12,000 13,200 110 2020/7

Prepreg KM 24,000 28,800 120 2020/7

Glass Fabrics

clothKM 0 102,000 100 2020/7

USA

EG KMT 360 828 230 2019/12

Composite PVC

Door FrameKMT 0 9 100 2018/12

THE END