ctci corporation the 1st investor · agenda •review of the past 40 years •operation review...

CTCI Corporation

The 1st Investor

Conference, 2019

2019.03.26

Agenda

• Review of the Past 40 Years

• Operation Review – Year 2018

• Business Outlook

• Financial Highlights – Year 2018

2

Review of the Past 40 Years

3

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


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

Operation Review – Year 2018

6

New Record

New First

New Honors


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


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

8

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%


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

8

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


New honorsThe CommonWealth Magazine Top 2,000

Enterprises SurveyENR Magazine Rankings

10

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

Copyright © 2016 CTCI All Rights Reserved.11

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”

Business Outlook

12


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


The Opportunities under the Government Energy

Transformation Policy

CTCI PowerPoint Master Deck

14

• 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


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

15


• 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

16


• 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

17


• 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

18

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

19


Potential Bidding Opportunities

20

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%

2018 Financial Highlights

21


NT$, billion

Consolidated Sales Revenues and Breakdown

22

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


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*

23

*This includes an one-off gain of NT$ 959 million, which is equivalent to basic earnings of NT$1.26 per share.


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

24


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$

ctci corporation the 1st investor · agenda •review of the past 40 years •operation review...

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