ctci corporation the 2nd investor · ctci corp. 1 ctci sec 30 3 1 ctci mac 41 4 2 ctci rei 51 5 4...

CTCI Corporation

The 2nd Investor

Conference, 2017

2017.10.03

1

Agenda

• Operation Review – 2017 Q1~Q3

• Business Outlook and Operation Strategies

• Financial Highlights – the1st Half of 2017

2

Operation Review – 2017 Q1~Q3

3

Copyright © 2016 CTCI All Rights Reserved.

Accomplishments Review

4

Accomplishments of project execution

• RAPID Package 1 RFCC Project awarded for Outstanding Executions for Pengerang Integrated Complex

• SAMAC MMA/PMMA Project awarded SABIC Green Flag for Best EHSS Performance Three Times

• CPC Talin Refinery No.11 DHDS Project awarded Outstanding HSE Performance

• Singapore Thomson Line Trackwork Project awarded LTA Annual Safety Award 2017

Company Honors

• Listed by Dow Jones Sustainability Indices (DJSI) in its Emerging Markets index for consecutive years

• Evaluated as Top 5% in “Corporate Governance Evaluation System”

• Listed among “Top 100 for Excellence in Corporate Social Responsibility” by CommonWealth Magazine

in 2017


Accomplishments Review

The CommonWealth Magazine Top 2,000

Enterprises Survey

Sector 2016 2017

International Contractors 100 99

Global Contractors 139 125

International Design Firms 92 71

Global Design Firms 147 126

5

Sector Company 2015 2016

Contractor

CTCI Corp. 1 1

CTCI SEC 30 31

CTCI MAC 41 42

CTCI REI 51 54

Investment Holding

Company KD Holding 8 8

Environmental

Services SESC 2 3

IT Equipment Sales

and Services CTCI ASI 33 42

Item Company 2015 2016

Top 50 Most

Profitable Companies

(net profit after tax)

CTCI Corp. 32 28

ENR Magazine Rankings


CSR Activities-1

6

To Improve Educational

Quality

To Cultivate Outstanding

Talents

To Encourage Academic Research

To Build Lifelong

Educational Environment

July- 2017 Exploring Taiwan 120 hours

Activity-Taiwan in My Eyes

August- 2017 Youth Sustainability

Leadership Camp

August- 2017 Zhishan Shilin Glory Culture

Festival

September-The Lecture of Taiwan

Engineering Technology in Retrospect and

Prospect

November-The Exploring Taiwan SDGs

Action

December-2017 CSR Academic Paper Awards

Long-term talent enhancement

plans, including establishing

internship programs and planning

corporate visits and scholarships.

In year 2016, CTCI devoted

7,556 working hours and NTD

4,000,000 toward promoting

academic research

From 2011 to 2016, we have

offered scholarships to aid 69

students with engineering

background. The accumulated

disbursement amount has

reached NTD 3.73 million

Active participation in relevant

nonprofit organizations and serve

in director and / or supervisory

roles in these groups to

contribute toward the promotion

of these groups. In 2016, CTCI

devoted NTD 2,009,700 toward

the operations of these groups

We have developed a long-term

partnership with the nonprofit

groups and provide emergency

relief to the needy. In 2016,

CTCI devoted NTD 2,071,451

Copyright © 2016 CTCI All Rights Reserved. 7

CSR Activities-2

• The launch of new CTCI global web

portal

• The publication of CTCI Reliable quarterly

E-Newsletter

• CSR Report • Group Chairman Attends 2017 CommonWealth

Economic Forum as a Panel Speaker • Listed by Dow Jones Sustainability

Indices (DJSI) for consecutive years


Unit: NT$, Billion

Backlog and Breakdown

8

Taiwan 56%

Southeast Asia 24%

China 2%

Middle East 17%

Other 1%

Hydrocarbon 34%

Environmental 38%

Transportation 5%

Power 15%

Industrial 7%

Other 1%

164

187 191

203

178

0

50

100

150

200

250

2013 2014 2015 2016 2017/8


New Contracts and Breakdown

9

66.9

77.9

64.5

85.6

25.3

0

10

20

30

40

50

60

70

80

90

2013 2014 2015 2016 2017/8

Unit: NT$, Billion

Taiwan 50%

Southeast Asia 35%

China 10%

Middle East 3%

United States 2%

Hydrocarbon 39%

Environmental 9%

Transportation 9%

Power 6% Industrial 23%

Other 14%


The projects to be awarded by the end of this year

10

Total bidding amount is up to

NT$ 220 billion dollars

Unit: NT$, Billion

Hydrocarbon 100

Hydrocarbon 40

Hydrocarbon 10

Hydrocarbon 12

Transportation 15

Power 28

Industrial 15

0

10

20

30

40

50

60

70

80

90

100

Middle East Southeast Asia United States Taiwan


Representative New Projects in 2017

Taiwan

IFSC HHCR Construction Work, EPC

MRT Sanxia--Yingge Line MEP Project, PCs

Chin-Pao-San Arrival Hall & Amphitheater MEP Project,

PCs

Taoyuan airport BHS and electromechanical system

installation and revamping Project

Gangshan EfW Plant O&M


China

Generation 10.5 Glass Substrate

Project PWTS system, EPCC

BASF EGSA CN Project Phase II,

EPCC

80 KTA SSBR Project Phase II,

EPCC

United States

120,000 BPSD Crude Oil

Processing

Middle East

Yansab Butadiene Project, FEED

Europe

INEOS-KTA New Ethylene Furnace

Project, FEED

Southeast Asia

Package 28B EURO 5 Mogas

Project, EPCC

Track 4A, 1440MW Combined Cycle

Power Plant, EPCC

KLLRT3 Power Supply Project,

EPCC

TOP E&I Work for Crude Oil Tank

Project, EPCC

GPSC Rayong Waste To Energy RDF

Plant Project, EPCC

Representative New Projects in 2017


Major Projects Awarded- Southeast Asia

Client PRPC Refinery and Cracker Sdn Bhd

Project Package 28B EURO 5 Mogas Project, EPCC

Contractor Consortium of CTCI and MIE Industrial Sdn Bhd

Scale

TAME: 17,500BPSD

ISOM: 10,000BPSD

CNHT: 43,000BPSD

Scope Design, Procurement, Construction and Commissioning

Location Malaysia

13

• This is the 2nd project in RAPID Complex awarded by Petronas

Johor


Client Southern Power Generation Sdn. Bhd.

Project Track 4A, 1440MW Combined Cycle Power Plant, EPCC

Contractor Consortium of CTCI and GE

Scale 2 x 720MW


Location Malaysia

14

• This is the first time to be within the consortium with GE for combined cycle power plant,

and the first time to be awarded the project by Tenaga Nasional Berhad (TNB)

Johor



Client Prasarana Malaysia Bhd

Project KLLRT3 Power Supply Project, EPCC

Contractor CTCI CMCE JV Sdn Bhd

Scale 38 km (26 stations and 1 depot)


Location Malaysia

15

• This is the first rail transportation project in Malaysia, and the first overseas project for

power supply system in rail transportation

Kuala Lumpur



Major Projects Awarded- China

Client US-based Display Technology Co., Ltd.

Project Generation 10.5 Glass Substrate Project PWTS system, EPCC

Contractor CTCI and CTCI Beijing

Scale

DI: 102 CMH

GPW: 260 CMH

DET: 3.6 CMH


Location China

16

• This is one of the most critical water treatment system for the most advanced Generation

10.5 Glass Substrate project from an US-based company

Hefei



Client BASF High Purity Electronic Chemicals (Jiaxing) Co., Ltd.

Project BASF EGSA CN Project Phase II, EPCC


Scale 12,000 tons per year


Location China

17

• Awarded the EPC work again for the Phase II project

Zhejiang


• Awarded the EPC work again for the Phase II project

Client ZHENJIANG CHIMEI CHEMICAL CO.,LTD

Project 80 KTA SSBR Project Phase II, EPCC




Location China

Jiangsu



Major Projects Awarded – The Middle East

19

• Continuously awarded by SABIC group, and will strive for the following EPC opportunity

Client Yanbu National Petrochemical Company (Yansab)

Project Yansab Butadiene FEED Project

Contractor CTCI


Scope FEED

Location KSA


Major Projects Awarded- The United States

Client Centurion Midstream Group (CMG)

Project 120,000 BPSD Crude Oil Processing

Contractor CTCI and CTCI Americas

Scale CDU:120,000 BPSD

Scope Integrated Project Management Team, Early Start Plan, FEED

Location The United States

20

• This is the first American client since CTCI Americas was founded

Texas

Business Outlook and Operation

Strategies

21

Outlook

• Taiwan Power Company has planned eight power plant expansion

projects amount totally NT$ 500 billion, including Dah-Tam, Gao-Yuan,

Shen-Ao, etc.

• CPC Corporation’s investment plan amounts NT$ 200 billion, such as

the Taoyuan Refinery Revamping Project, the Third LNG Terminal

Project, CPC Talin Tank Farm Project and projects for high-value

petrochemical products

• MRT projects such as Taoyuan Green Line, Wanda Line, and Xinyi

Eastern Extension and Xinzhuang Depot E&M System Project

• The six Wastewater Reclamation projects in Taiwan have been

planned by CPAMI since last year, and will be continuously open for

bidding in the future

Strategies • Continuously maintain close cooperation with major equipment suppliers to stabilize the domestic

power plant market

• Aggressively seek for the domestic investment plan for high-value petrochemical products

Outlook and Strategies─Taiwan

The government policies to stimulate the economy include the “Forward-looking Infrastructure

Construction Project” and several power plant expansion projects in response to the nuclear-

free policy

Outlook

• Thai Oil refinery plant and IPP gas-fired power plants in

Thailand

• Incineration Plant in Philippines

• RAPID petrochemical EPC projects and IPP

gas-fired power plant in Malaysia

• ExxonMobil refinery plant and MRT project in Singapore

• Lube oil blending plant and power plant in Vietnam

• Pertamina Balikpapan refinery plant in Indonesia

• LNG receiving terminal projects in India

Strategies • Expand the business lines in the area and extend the market to Burma, Brunei, Bengal and

Pakistan, etc.

After the situation of Southeast Asia are stabilized politically and economically, many

infrastructure and petrochemical projects were released

Outlook and Strategies– Southeast Asia

Outlook

• Aramco invests in gas industry and has first

released the projects amounted US$ 4 billion this

year in KSA

• Borouge petrochemcial complex in UAE

• Qatar Petroleum gasoline project in Qatar

• Sonatrach four new refinery plants in Algeria

Major potential opportunities are downstream petrochemical plants based on strategic

plan for country economy development and private investment

Strategies • To cultivate the relationship with clients such as SABIC and Qatar Petroleum, etc.

• To develop the new markets such as Kuwait, UAE, Iran, Africa and Turkey

Outlook and Strategies– Middle East and Africa

Outlook

• Petrochemical expansion projects invested by

Formosa group and the joint venture of ExxonMobil

and SABIC in Texas

• Petrochemical expansion projects invested by

Formosa group in Louisiana

• LCD panel plant invested by Foxconn in Wisconsin

Strategies

• With the support of senior American management team, CTCI will aggressively strive for

projects from American clients

• Seek for the local strategic alliance to support the demand for labor for the local

construction work

• Apply modularization to large equipment to minimize the site manpower

Outlook and Strategies-The United States

• The cheap shale gas boosted the investment on petrochemical plants, and the cross

border investors also invested in new capacity

• Attracted by Trump’s policy, Taiwanese electronic companies and traditional

companies plan to invest in the United States

Strategies

• CTCI Beijing will be able to receive the state guarantee for the project finance by

cooperating with China Export & Credit Insurance Corporation (Sinosure), which is

beneficial for CTCI to win the project

Outlook

• PTA/PET detail design work in Russia

• PTA/PET FEED work in Kazakhstan

The abundant gas and petroleum resources in Russia and Kazakhstan provide many

opportunities for petrochemical industry

Outlook and Strategies- CIS

•27

Group Research & Innovation Center Established

• Integrate group innovation resources

• Enhance iEPC capability

• Develop Intelligent Solution Cloud ( iSC)

iEPC

iSC

( Intelligent Solution Cloud)

Smart Search

Image

Recognition

Engineering

Natural Languages

Engineering

Assistant by AI

IoT

Smart

Service Platform

Smart City

Big Data


iEPC

28

Innovation Thinking of i EPC-Turnkey Service

Construction

Procurement

Engineering

Project

Management

Smart Fabrication

Smart Installation

Smart Procurement

Smart CAE/CAD

Auto-Design by AI

Distributed Schedule Control

/Agile Reaction


Taiwan

Hydrocarbon:18bn

Infrastructure, Environment, and Power:38.5bn

Total Amount

Hydrocarbon:533.1bn

Infrastructure, Environment and Power:104.3bn

China

Hydrocarbon:20bn


CIS and Others:

Hydrocarbon:1.1bn

2017Q4~2018Q3 Potential Opportunities

29

United States

Hydrocarbon:90.3bn

Unit：NT$

Southeast Asia

Hydrocarbon:87.4bn


Middle East

Hydrocarbon:273.3bn

Infrastructure, Environment, and Power:6bn

India

Hydrocarbon:43.0bn

Financial Highlights – 1st Half of 2017

30


Consolidated Sales Revenues and Breakdown

31

52.2

57.7

67.1 70.5

43.7

0

10

20

30

40

50

60

70

80

2013 2014 2015 2016 2017/8

Unit: NT$, Billion

Taiwan 48%

South East Asia 19%

China 4%

Middle East 28%

Others 1%

Hydrocarbon 53%

Environmental 9%

Transportation 4%

Power 25%

Industrial 6%

Others 3%


Consolidated Income Statement in 1st Half of 2017

Unit: NT$, Thousand

2017/06/30 2016/06/30 YOY

Sales Revenues 32,479,440 100% 31,788,598 100% 2.2%

Operating costs (30,105,962) -92.7% (28,851,536) -90.8% 4.3%

Gross Profit 2,373,478 7.3% 2,937,062 9.2% -19.2%

Operating expenses (1,020,816) -3.1% (927,869) -2.9% 10.0%

Operating income 1,352,662 4.2% 2,009,193 6.3% -32.7%

Total non-operating income and

expenses 879,371 2.7% 7,694 0.0% 11,329%

Profit before income tax 2,232,033 6.9% 2,016,887 6.3% 10.7%

Income tax expense (331,957) -1.0% (465,865) -1.5% -28.7%

Profit for the period 1,900,076 5.9% 1,551,022 4.9% 22.5%

Profit attributable to Owners of

the parent 1,657,531 5.1% 1,028,778 3.2% 61.1%

Total basic earnings per share 2.18 1.35

32


Consolidated Balance Sheet in 1st Half of 2017

Unit: NT$, Thousand

2017/06/30 2016/06/30 2017/06/30 2016/06/30

Current assets* 47,487,187 48,050,606 Current liabilities 38,074,466 38,019,557

Financial assets 1,257,037 1,083,283 Non-current

liabilities 5,194,840 5,676,556

Non-current assets 15,186,626 14,558,797 Long-term

borrowings 2,093,150 2,437,150

Property, plant and

equipment 6,714,693 6,873,492

Other non-current

liabilities 3,101,690 3,239,406

Intangible assets 91,738 86,263 Total Liabilities 43,269,306 43,696,113

Other non-current

assets 8,380,195 7,599,042 Total equity 19,404,507 18,913,290

Total assets 62,673,813 62,609,403 Total liabilities and

equity 62,673,813 62,609,403

Cash and cash equivalents:NT$15.1bn

33


Dividend Payout

34

Unit: NT$

2.13

2.41 2.65

2.91

3.22 3.32

2.22

2.51 2.69

2.91

1.74 1.92

2.37 2.42

2.76 2.84

1.99 2.23

2.40 2.60

87%

80%

89%

83% 86% 85%

90% 89% 89% 89%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EPS Cash DPS Cash Dividend Payout Ratio(%)

ctci corporation the 2nd investor · ctci corp. 1 ctci sec 30 3 1 ctci mac 41 4 2 ctci rei 51 5 4...

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