ctci corporation 2015 2 investor conference ctci corporation 2015 q1~q3 operation review company...

CTCI Investment Relation

CTCI Corporation 2015 2nd Investor Conference

September 30, 2015

The Most Reliable Global Engineering Service Provider

2

CTCI CORPORATION

2015 Q1~Q3 Operation Review and

Business Outlook

• 2015 Q1~Q3 Operation Review

• Business Outlook

• 2016 Potential Oppurtunities

New Contracts and Financial

Highlights –2015 1st Half

3

CTCI CORPORATION

• 2015 Q1~Q3 Operation Review

4

CTCI CORPORATION

-

20

40

60

80

100

120

140

160

2006/1/2 2007/1/2 2008/1/2 2009/1/2 2010/1/2 2011/1/2 2012/1/2 2013/1/2 2014/1/2 2015/1/2

Demand Supply

Sep.19 2015 Brent:$48 WTI:$45

2015 Q1~Q3 Operation Review

The Oil War

• To compete against US shale oil industry, the OPEC lowers the oil price while maintaining the volume of oil production. Following the removal of Iran oil export sanction, the problem of global oil oversupply will get worse.

• Negative impacts: deteriorating fiscal situations of oil producing countries, decline in profits or deficits for oil companies, a falling oil price lower than the cost for shale oil drilling, bankruptcies for shale oil companies, etc.

5

CTCI CORPORATION


Maximizing Current Business through Horizontal and Vertical Expansion

• In-depth development in local markets, including that of power plants and MRT projects

• Cooperation with clients involved in the field of new business, such as green energy, waste reduction

• Strengthen Front-End Engineering Design (FEED) ability to pursue Feed+EPs tenders for persuading clients into EPC L/S in good timing for business opportunities

• Expand downward to maintenance business for existing EPC projects

Expand Products, Markets and Technologies

• New Products: such as Gas Field, LNG export terminals, HSBC and C4,C5 derivatives

• New Markets: seek to form alliances with local EPC companies and leverage the resources of oversea subsidiaries to expand the new markets, such as Indonesia, Malaysia, Myanmar, the USA and Latin America , etc.

• New Technologies: to acquire upstream products and technologies such as ethylene cracker, cryogenic tank, high pressure system and MRT signal system through merger and acquisition, or strategic alliance

6

CTCI CORPORATION


Business

Hydrocarbon Business Operations

• Refinery : Awarded Talin Plant #3 RDS & #8 SRU EPC Project from CPC Corporation; refinery project cooperated with an US company qualified by an oil company in the Middle East.

• Petrochemical : Awarded 2 basic design projects for petrochemical plant of Formosa Group in the USA. Bidding 2 mega petrochemical plants in Malaysia and Omen respectively, the results are expected to be announced by the end of 2015.

Infrastructure ,Enviroment and Power Business Operations

• Power Plants: Bidding air pollution control project of domestic power plant , EPC project of Vietnam power plant, the results are expected to be announced by the end of 2015. Evaluating the Malaysia power plant projects.

• Infrastructure: Awarded the third MRT trackwork project in Singapore. CTCI has the highest market share for undergoing trackworks projects in Singapore. Bidding MRT and other transportation projects in Taiwan, South East Asia and India.

• Others: Awarded Ti-Sponge Plant EPC project in Saudi Arabia by joint venture with Chiyoda Corp.

7

CTCI CORPORATION


Company Honors

• The first and only Taiwan EPC company selected for Dow Jones Sustainability Index – Emerging Markets.

• Top 50 for Excellence in Corporate Social Responsibilities” by CommonWealth Magazine

• Evaluated as Top 5% in the 2014 Corporate Governance Evaluation System by Taiwan Stock Exchange Corporation

Overseas M&A and Investment

• Invested an engineering company in Malaysia by acquiring 49% shares so as to better develop ASEAN markets and strengthen CTCI’s overseas competitiveness.

ENR Rankings

• To develop international market with commendable results , with the international rankings improved . Ranking 2014 2015

International Contractor 131 122

Global Contractor 160 149

International Design Firms 114 103

Global Desing Firms 144 136

8

CTCI CORPORATION

• Business Outlook

9

CTCI CORPORATION

Business Outlook

Enormous Construction Opportunities from “One Belt , One Road” Initiative

“Silk Road Economic Belt” and “New Sea-Route Silk Road”; China’s strategic transformation to the New Normal

• Alliance with overseas complementary strategic partners for strengthening marketing and project execution ability. Several MOUs have been signed.

• The projects will be mainly about infrastructures. Several power plant and steel plant projects are now being evaluated.

Russia High Speed Rail

Kazakhstan Coal-fired power plant

India Railway

Indonesia Steel Plant, Coal-fired power plant

Pakistan Railway projects, highway Coal-fired power plants, solar power, wind power

10

CTCI CORPORATION

Business Outlook

Business Development : USA

Benefited from the rise of shale gas, investment opportunities of downstream petrochemical plants are increasing

• Investment incentives: The cost of using US shale gas as feedstock to produce ethylene is lower than using naphtha in Asia

• Potential opportunities of ethylene glycol (EG), ethylene oxide (EO) and low density polyethylene (LDPE), etc

• To strengthen the local market competitive advantages and engineering execution capability through M&A, alliances and other strategic partnerships

Business Development : India

The new India government promotes the concept of “Made in India”

• To participate in early investment work by serving as a consultant role for other Taiwanese companies

• CTCI has the language advantage for communication, years of operation experiences and local engineering track records

• Business opportunities from Taiwanese companies: steel plant expansion project, new construction projects from hi-tech industry and traditional industry

• Actively seek LNG projects by using the track record of Kochi LNG receiving terminal projects.

11

CTCI CORPORATION

Business Outlook

Business Development : Middle East

Bidding opportunities from Iran and six Gulf countries

• Potential projects in Saudi Arabia area are gradually initiated, such as mega EPC projects of oil companies in Saudi Arabia. CTCI has successfully passed prequalification of several projects and will soon receive invitation to bid.

• There is a high demand for expansion of refinery and petrochemical plants in Iran. CTCI has been paying attention to related business opportunities and will choose to enter the market at an appropriate time.

• Bidding opportunities are abound in the fields of steel, nonferrous, power desalination, air pollution control, and MRT Systems, etc., while the competition is still intensive. The Company will continuously bid the appropriate projects actively.

12

CTCI CORPORATION

• 2016 Potential Oppurtunities

13

CTCI CORPORATION

Taiwan Hydrocarbon:NT$50.0bn Non-Hydrocarbon:N$T43.4bn

South East Asia Hydrocarbon:NT$83.9bn Non-Hydrocarbon:NT$57.0bn

Middle East Hydrocarbon:NT$192.0bn Non-Hydrocarbon:NT$51.0bn

2016 Potential Oppurtunities

Potential Oppurtunities

Total Amount Hydrocarbon Hydrocarbon:NT$389.4bn Non-Hydrocarbon:NT$181.2bn

China Hydrocarbon:NT$21.0bn Non-Hydrocarbon:NT$3.8bn

America and Others Hydrocarbon:NT$22.0bn

India Hydrocarbon:NT$20.5bn Non-Hydrocarbon:NT$26.0bn

14

CTCI CORPORATION

2015 Q1~Q3 Operation Review and

Business Outlook

New Contracts and Financial

Highlights–2015 1st Half

• New Projects Awarded in 2015

• Consolidated Sales Revenues,New Contracts and Backlog

• Financial Stataments – 2015 1st Half

15

CTCI CORPORATION

• New Projects Awarded in 2015

16

CTCI CORPORATION

New Domestic Projects in 2015

Project Talin Plant #3 RDS & #8 SRU Project

Client CPC Corporation

Contractor CTCI Corporation

Capacity RDS 40,000 (barrels/day, BPSD)

SRU 250 (tons/day, TPD)

Service Scope EPC

Location Taiwan

Kaohsiung,Taiwan

• Rich high-pressure hydrogen engineering

design and plant expansion experiences in

domestic and overseas markets.

• Won several public works quality awards.

• Capacity of RDS increased from 30,000 to

40,000 BPSD.ccvc ; Capacity of SUR

increased from 200 to 250 TPD.

17

CTCI CORPORATION

New Overseas Projects in 2015

Project Low density polyethylene (LDPE) project

Client FPC-USA


Capacity 400 KTA(Kiloton Annually)

Service Scope Basic Design

Location USA

• Breakthrough in the high-pressure

LDPE technology

• Successfully defeat the international

peers, and enter the US market.

• Significantly beneficial for acquiring

potential construction project in the

US market

Texas,USA

18

CTCI CORPORATION


Project Ethylene glycol (EG) plant expansion project

Client Nan Ya Plastics USA


Capacity 830 KTA(Kiloton Annually)

Service Scope Basic Design

Location USA

• Successfully defeats the international

peers, and enters the US market

• Significantly beneficial for acquiring

potential construction project in the

US market. Texas,USA

19

CTCI CORPORATION

Project YNP Ti-sponge EPC Project

Client Toho Titanium/Advanced Metal

Industries Cluster Joint Venture

Contractor CTCI Corporation/Chiyoda Corporation

Joint Venture

Capacity 15.6 KTA(Kiloton Annually)

Service Scope EPC

Location Saudi Arabia


Yanbu,Saudi Arabia

• After undertaking the cold mill steel

plant project of CSC in India, CTCI was

awarded the YNP Ti-Sponge Project,

marking a milestone for entering

overseas steel and non-ferrous plant

fields.

Titanium plant

Titanium tetrachloride

Plant

Titanium dioxide plant

20

CTCI CORPORATION


Project Gali Batu depot trackword project

Client Land Transport Authority ,Singapore


Length 5.6 kilometer

Service Scope EPC

Location Singapore

• After undertaking the Downtown Line and

Thomson Line trackwork projects in 2011

and 2014 respectively, CTCI was awarded

the Gali Batu Depot trackwork project

• The contractor having the highest market

share of all undergoing trackwork projects

in Singapore

Singapore

21

CTCI CORPORATION

• Consolidated Sales Revenues,New

Contracts and Backlog

22

CTCI CORPORATION

Consolidated Sales Revenues and Breakdown

56.3

60.5

52.2

57.7

40.8

0

10

20

30

40

50

60

70

2011 2012 2013 2014 2015.8

Unit:NT$,Billion

Taiwan 58%

Middle East 18%

Thailand 8%

Malaysia 6%

China 5%

Singapore 3% Other 2%

Power 41%

Petrochemical 19%

Refinery 18%

Infrastructure 7%

Incineration 7%

Other 6%

Hi-Tech 2%

23

CTCI CORPORATION

New Contracts and Breakdown

79.5

60.2

66.9

77.9

18.0

0

10

20

30

40

50

60

70

80

90

2011 2012 2013 2014 2015.8

Unit:NT$,Billion

Taiwan 36%

Middle East 23%

Malaysia 22%

China 11%

USA 4%

Singapore 3% Others 1%

Refinery 37%

Steel and Non Ferrous Metals

21%

Hi-Tech 11% Petrochemical

8%

Infrastructure 7%

Other 6%

Operating & Maintenance

5% Enviroment 3%

Power 2%

24

CTCI CORPORATION

Backlog and Breakdown

154.6 153.2

163.5

187.1

166.8

100

110

120

130

140

150

160

170

180

190

200

2011 2012 2013 2014 2015.8

Unit:NT$,Billion

Taiwan 56%

Malaysia 24%

Middle East 12%

Singapore 4%

China 2% Other 2%

Refinery 30%

Power 27%

Petrochemical 14%

Incineration 13%

Infrastructure 8%

Other 6%

Steel and Non Ferrous Metals

2%

25

CTCI CORPORATION

• Financial Stataments – 2015 1st Half

26

CTCI CORPORATION

2015/06/30 2014/06/30 YOY

Sales Revenues 29,863,584 100.0% 26,009,604 100.0% 14.8%

Operating costs (27,454,289) -91.9% (23,982,411) -92.2% 14.5%

Gross Profit 2,409,295 8.1% 2,027,193 7.8% 18.8%

Operating expenses (766,764) -2.6% (735,734) -2.8% 4.2%

Operating income 1,642,531 5.5% 1,291,459 5.0% 27.2%

Total non-operating income and expenses

(91,803) -0.3% 26,959 0.1% -440.5%

Profit before income tax 1,550,728 5.2% 1,318,418 5.1% 17.6%

Income tax expense (322,580) -1.1% (253,578) -1.0% 27.2%

Profit for the period 1,228,148 4.1% 1,064,840 4.1% 15.3%

Profit attributable to Owners of the parent

988,647 3.3% 867,240 3.3% 14.0%

Total basic earnings per share

1.31 1.16 12.9%

2015 1st Half Consolidated Income Statement

Unit:NT$,Thousand

27

CTCI CORPORATION

2015/06/30 2014/06/30 2015/06/30 2014/06/30

Current assets* 41,876,995 41,045,347 Current liabilities 31,980,460 31,078,705

Financial assets 1,276,439 2,294,123 Non-current liabilities

6,157,411 6,667,217

Non-current assets 14,839,696 14,498,447 Long-term borrowings

2,769,150 3,083,550

Property, plant and equipment

6,933,450 6,967,687 Other non-current liabilities

3,388,261 3,583,667

Intangible assets 121,772 115,030 Total Liabilities 38,137,871 37,745,922

Other non-current assets

7,784,474 7,415,730 Total equity 18,578,820 17,797,782

Total assets 56,716,691 55,543,794 Total liabilities and equity

56,716,691 55,543,794

*Cash and cash equivalents:NT$9.3bn

2015 1st Half Consolidated Balance Sheet

Unit:NT$,Thousand

28

CTCI CORPORATION

Thanks!

ctci corporation 2015 2 investor conference ctci corporation 2015 q1~q3 operation review company...

Documents