ctci group ctci/ investor relationshipx(1)s(btjk55ee4vrymd55zu02x1fn))/epc/...–2015 retained 1st...

CTCI/ Investor Relationship

Our Vision

The Most Reliable Global Engineering Service Provider

CTCI GROUP


Business Operation

Financial Highlights

Company Overview

Looking Forward

2


• The Largest Engineering, Procurement and Construction (“EPC”) Company in Taiwan

– Over 50 years of industry experience (since the founder, CTCI Foundation set up in 1959)

– 2015 retained 1st in the category of EPC among Top 650 Service Enterprises(Common Wealth Magazine)

• Offering Specialized Turn-key EPC Solutions

– Ability to execute EPC contracts size up to USD 1 billion

– Expanded business lines from refinery, chemical and petrochemical into power, infrastructure,

environmental protection, steel & nonferrous, storage & terminal, and waste-to-energy fields

• Significant Domestic and Overseas Experiences

– Utilized the top-notch technologies transferred from abroad and has become a designated partner for many internationally well-known companies to collaborate with

– Hundreds proven track records worldwide, including Taiwan, China, Thailand, Singapore, Malaysia, Vietnam, Philippines, Indonesia, India, KSA, Qatar and USA

• One of Major EPC Firms in Asia

– Global presence with approximately 7,000s employees stationed in more than 40s affiliates worldwide

– 2014 ranked as 114th in ENR International Design Firms and 131th in ENR International Contractors

Introduction

3


• History

1959 – China Technical Consultants, Inc. (now renamed as CTCI Foundation) established

1979 – CTCI Corporation founded by CTCI Foundation and two financial organizations

1993 – CTCI was listed in TWSE (9933 TT)

2011 – Chiyoda invested CTCI and became the major shareholder

• Paid-in Capital ………………………………NTD 7.59 Billion (USD 24.24 Million)*

• Market Cap……………………………………NTD 39.15 Billion (USD 1.25 Billion)*

• Shareholder Structure(latest information as of 24th April , 2014)

Company Profile

*: Base date 31st Mar. 2015

CTCI Stock Price:51.6; Outstanding Shares :758,645,098; USD:NTD=1:31.30

4

49.2% 50.8%

Local Institutional Investors &Private Investors

Foreign Institutional Investors


Feasibility

Study

& Planning

Engineering Design(E)

Procurement(P) Fabrication Construction(C) Commissioning & Maintenance

Project Management

• Market Survey

• Enquiry and Purchasing

• Inspection and Expediting

• Shipping, Delivery and Claims

• Customs Clearance

• Insurance

• Subcontracting

• Permits and Banking Affairs

• Equipment Installation and

Rigging

• Piping/ Steel Structure

Fabrication & Erection

• Electrical/ Instrument

Installation & Wiring

• Civil & Building

• Painting & Insulation

• Construction Management

• Process Design

• Piping Design

• Civil and Structure Design

• Instrumentation and Control

Design

• Electrical Design

• Mechanical and Equipment

Design

Comprehensive Services

5


• Petroleum Refining

• Petrochemical Processing

• Chemical Manufacturing

• Storage and Terminals

Hydrocarbon

• Power Plant

• Infrastructure

• Transportation

• Steel Mill

• Incineration and Energy

Recovery

• Air Pollution Control

Infrastructure,

Environment and Power

• Maintenance Strategy/

Planning/Execution

• Plant Inspection

• Maintenance

• Asset Integrity

Management

Plant Maintenance

• BOT & BOO

• Incineration O&M

• Resources Collection

Recycling

• Renewable Energy

Environment and Resource

Business Areas

6


• Founded:1987

• Listed: 2002

• Paid-in Capital: NTD 234 Million(USD 7.5 Million)

• Market Cap: NTD1.2 Billion(USD 37.9 Million)

• 2014 EPS: NTD 3.30

• CTCI Holding Ratio : 50.13%

• Business area: -Main automation contractor -Manufacturing execution system -Intelligent manufacturing -Process optimization -Facility reliability

Listed subsidiaries

• Founded:1999

• Listed: 2010

• Paid-in Capital: NTD 650 Million(USD20.8 Million)

• Market Cap: NTD 11.3 Billion(USD 362 Million)

• 2014 EPS: NTD 10.47

• CTCI Holding Ratio : 62.38%

• Business area: -Incinerators O&M (8 of 24 in TW+2 in Macau) -New recycling business (Glass, Waste tire, and Food waste) -Green energy (Small solar power plant)


CTCI Stock Price:50.7; Outstanding Shares :23,373,500; USD:TWD=1:31.30


CTCI Stock Price:174.5;Outstanding Shares :64,986,449; USD:TWD=1:31.30

7


Global Network

As of March. 31st ,2015

Domestic

Manpower

Taiwan 5,447

Overseas

Manpower

Beijing 612

Shanghai 90

Thailand 812

Vietnam 227

India 120

Saudi

Arabia

39

Singapore 18

Malaysia 7

Sub-total 1,925

Total 7,372

8


Competitive Advantages

• Comprehensive EPC experiences

– Full knowledge of major licensors and EPC firms

– Strategic alliance successfully with selected technology providers

– Significant EPC experiences in multiple geographical regions and industrial sectors

• Cost Effective

– Local engineering workforce is highly cost-competitive compared to western and Japanese peers

– Valuable engineering design and sound project management by competent engineers and project management team

• Long-Standing Client Relationships

– Performed EPC services for numerous major domestic and international clients

– Repeat clients gain through solid track records

• Green Energy Business Competitiveness

– Incineration plant business with competitive advantages. Growing environmental business opportunities

9


Significant Track Records (1/3)

20

12

20

14

Client Project Location

Tai Power 800 MWX2, Power Generating Equipment for Talin Power Plant Renewal

Taiwan

QAPCO Furnaces and Ethylene Tank Qatar

USI Kaohsiung Plant 50 KTA EVA Taiwan

QAPCO Regenerative Thermal Oxidizer System Taiwan

CPC Talin #10 SRU Taiwan

20

13


Tai Power 900 MWx3 Power Generating Equipment for Tung Hsiao Power Plant Renewal

Taiwan

LRC2 146000 BPSD Laffan Refinery 2 Qatar

OPTC Kuan-Yin 1520 KTA lINE 3 PTA Plant Taiwan

Chi Mei Zhenjiang 40 KTA SSBR China

KFPC 30 KTA HSBC Taiwan


Petronas 140 KBPSD RAPID Refinery RFCC Malaysia

SAMAC 250KTA MMA and 40KTA PMMA KSA

Land Transport Authority Singapore Thomson Line Track work Singapore

CPC Talin #11 DHDS Taiwan

Far Eastern FUPY 75/450KTA EO/EG China

10




Aramco/Total JERP Package Saudi Arabia

Saudi Kayan (Sabic Group) Utility Block Saudi Arabia

Petronet LNG India

Government of the Macau O &M of Macau Refuse Incineration Plant Macao

CPC No.6 Naphtha Cracker Taiwan

20

09


IBN RUSHD(Sabic Group) IR-II Expansion Saudi Arabia

Saudi Kayan (Sabic Group) Amines EPC Saudi Arabia

Kimanis Power 300MW Combined Cycle Power Plant Malaysia

Dragon Steel NO.2 Sinter plant Election work Taiwan

Formosa Petrochemical RDS No.2 reconstruction work Taiwan

China Steel Trackwork, earthwork and drainage Taiwan

20

10


Tai Power Lin Kou Power Plant Renewal Taiwan

Dept. of Rapid Transit Taichung MRT Green Line E&M /AFC Taiwan

Land Transport Authority Trackwork EPC Singapore

Petronet LNG Expansion India

20

11

11



PTTAC AN/MMA Thailand

Titan Petrochem Propylene /Butadiene Extraction Malaysia

PTTUT Central Utility NO.1 PhaseⅠ~Ⅳ/ CUP-Ⅲ Thailand

Taipei City Government MRT Xinyi-Songshan Line Core System Taiwan

CPC RFCC Taiwan

Dragon Steel Sintering Taiwan


20

06

20

07

20

08


Saudi Kayan (Sabic Group) EO/EG Saudi Arabia

PPCL Phenol/Cumene Thailand

Bangchak Petroleum Quality Improvement Thailand

PTT/HMC PDH Thailand

BASF/ Huntsman MDI/TDI China

Oriental Petrochemical PTA China


QAPCO Ethylene Package NO.2 Qatar

Thai Olefins Olefins Debottlenecking Thailand

Taipei City Government Taipei MRT Tucheng Line Power System Taiwan

12


Business Operation


Company Overview

Looking Forward

13


Sales Revenues and Breakdown

14

10.5%

Unit:NTD,Billion

56.3

60.5

52.2

57.7

40

45

50

55

60

65

2011 2012 2013 2014

Taiwan 65%

Middle East 13%

China 8%

Thailand 8%

Malaysia 2% India 2%

Other 1% Singapore 1%

Power 45%

Petrochemical 19%

Refinery 15%

Infrastructure 8%

Incineration 7%

Other 2% Steel 2%

Hi-Tech 1% Environmental 1%


New Contracts and Breakdown

15

Malaysia 44%

Taiwan 24%

Middle East 23%

Singapore 6%

China 2% Others 1%

Refinery 49%

Petrochemical 26%

Infrastructure 12%

Other 8%

Power 2% Hi-Tech 2% Operating &

Maintenance 1%

79.5

60.2

66.9

77.9

50

55

60

65

70

75

80

85

2011 2012 2013 2014

Unit:NTD,Billion

(The Second

Highest)

16.4%


Project RAPID Refinery RFCC Package Project

Owner Petroliam National Berhad(PETRONAS)

Main Contractor CTCI/Chiyoda

Capacity RFCC 140,000 BPSD

Service EPC

Location Malaysia • The contract value is approximately USD 1.3

billion, the biggest overseas contract in the

history of CTCI Corporation.

• Estimated investment amount of RAPID

projects is USD 27 billion. There should be

more petrochemical plant opportunities in

the future.

2014 New Contracts in Overseas Market

Malaysia

Resource: http://duniandt.blogspot.tw

16


• The MMA plant will be the largest ever

built, with a 250,000 metric ton annual

capacity. It will use Lucite International’s

(LI) Alpha technology.

• The PMMA plant will be based on MRC

technology and will have an annual

capacity of 40,000 metric tons.


Project MMA/PMMA

Owner Saudi Arabian Methacrylate Company (SAMAC)

Main Contractor CTCI Corporation

Capacity MMA: 250,000 MTA

PMMA: 40,000 MTA

Service EPC

Location Kingdom of Saudi Arabia

Jubail

17

CTCI/ Investor Relationship • The Thomson Line is the sixth MRT route in

Singapore which links the North and South of

Singapore. The whole line is located in

underground.

• Following the successful award of the

Singapore Downtown Line Stage 3 Trackwork

in 2011, CTCI Corporation was again awarded

the Thomson Line Trackworks Project.


Project Singapore Thomson Line Trackworks Project

Owner Land Transport Authority (LTA) Singapore

Main Contractor CTCI Corporation

Service Route Length: 30 Km. Trackworks EPC

Location Singapore

Singapore

18


Backlog and Breakdown

19

(Historical High)

14.4%

154.6 153.2

163.5

187.1

100

110

120

130

140

150

160

170

180

190

200

2011 2012 2013 2014

Unit:NTD,Billion

Power 33%

Refinery 25%

Petrochemical 16%

Incineration 12%

Infrastructure 9%

Other 3% Storage & Terminal 1%

Environment 1%

Taiwan 60%

Malaysia 20%

Middle East

12%

Other 4%

Thailand 2% China 2%


On-going Projects in Middle East

Saudi Arabia

SAMAC 250KTA MMA and 40KTA PMMA Project

Qatar

Laffan Refinery 2 Project

Ethylene Cracking Furnace and Tank Project

YNP Ti-Sponge Project

20

Saudi Arabia

TOHO/AMIC 15.6 KTA Ti-Sponge YNP Project


Malaysia

Petronas RAPID Refinery RFCC Project

Singapore

DTL Stage 3 MRT Trackwork Project

Thomson Line Trackwork Project

Thailand

Thai Oil 217MW SPP Project

On-going Projects in South East Asia

21

Philippines

Pagbilao Power Station Unit 3 Seawater FGD Package Project


DORTS

Taipei MRT E&M system

Taichung MRT E&M system

Taipower

Linkou 800MWx3 Coal Fired Power Plant Renewal Project

Talin 800MWx2 Coal Fired Power Plant Renewal Project

Tung Hsiao 890MWx3 LNG fired Power Plant Renewal Project

彰化縣

CPC

Talin No.11 DHDS Project

Talin Refinery No.3 RDS Unit Revamping Project

Taichung LNG Plant Ph-II Re-gas Project

USI

Kaohsiung 50 KTA EVA Project

Asia Polymer

Linyuan 50 KTA EVA Project

OPSC

Kuanying 152 KTA PTA Project

林口觀音

On-going Projects in Taiwan

Formosa Group

Kraton 30 KTA HSBC Project

通霄

大林

22


Chimei Chemical 40,000 tons SSBR Project

On-going Projects in China

Ningbo Formosa Group 72 KTA EVA Project

Zhangchiang

23


Business Operation


Company Overview

Looking Forward

24


2015 1st Quarter Consolidated Income Statement

25

2015/03/31 2014/03/31 YOY

Sales revenues 13,378,271 100.0% 12,125,362 100.0% 10.3%

Operating costs (12,222,546) -91.4% (11,137,553) -91.9% 9.7%

Gross profit 1,155,725 8.6% 987,809 8.1% 17.0%

Operating expenses (409,230) -3.1% (353,281) -2.9% 15.8%

Operating income 746,495 5.6% 634,528 5.2% 17.6%

Total non-operating

income and expenses (58,094) -0.4% 15,846 0.1% -466.6%

Profit before income

tax 688,401 5.1% 650,374 5.4% 5.8%

Income tax expense (155,277) -1.2% (115,669) -1.0% 34.2%

Profit for the period 533,124 4.0% 534,705 4.4% -0.3%

Profit attributable to

Owners of the parent 422,287 3.2% 435,012 3.6% -2.9%

Total basic earnings per

share 0.56 0.58 -3.4%

Unit:NTD,Thousand


2015 1st Quarter Consolidated Balance Sheet

26

2015/03/31 2014/03/31 2015/03/31 2014/03/31

Current assets* 41,160,152 39,699,782 Current liabilities 29,609,708 27,598,678

Financial assets 1,278,057 2,615,741 Non-current

liabilities 6,253,068 6,876,716

Non-current assets 14,725,845 13,770,977 Long-term

borrowings 2,887,350 3,257,297

Property, plant and

equipment 6,969,519 7,073,597

Other non-

current liabilities 3,365,718 3,619,419

Intangible assets 102,572 96,211 Total Liabilities 35,862,776 34,475,394

Other non-current

assets 7,653,754 6,601,169 Total equity 20,023,221 18,995,365

Total assets 55,885,997 53,470,759 Total liabilities and

equity 55,885,997 53,470,759

*Cash and cash equivalents:NTD12.5bn

Unit:NTD,Thousand


Unit :NTD Million, except per share data

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sales Revenues 31,519 33,582 43,954 52,244 47,098 51,877 56,279 60,522 52,223 57,692

% Growth 58.5% 6.6% 30.9% 18.9% -9.9% 10.2% 8.5% 7.5% -13.7% 10.5%

Gross Profit 1,927 2,186 3,065 3,369 3,668 4,289 4,655 5,159 4,217 4,165

% Margin 6.1% 6.5% 7.0% 6.5% 7.8% 8.3% 8.3% 8.5% 8.1% 7.2%

Net Income Before Tax

946 1,233 1,815 1,979 2,356 2,737 3,272 3,453 2,510 2,906

EPS 1.32 1.67 2.12 2.41 2.65 2.91 3.22 3.32 2.22 2.51

Cash DPS 1.00 1.32 1.74 1.92 2.37 2.42 2.76 2.84 1.99 2.24

Stock DPS 0.08 0.21 0.12 0 0 0 0 0 0 0

Payout Ratios 81.7% 91.6% 87.7% 79.7% 89.4% 83.2% 85.7% 85.5% 89.6% 89.2%

New Contract Amount

15,927 70,534 18,516 71,771 60,232 54,935 79,542 60,173 66,924 77,866

Total Backlog 53,685 91,864 67,110 86,703 100,811 100,094 154,649 153,228 163,517 187,102

Financial Data Summary

27


Financial Snapshot

Unit: NTD

Profitability

29

3.7% 3.5% 3.9% 4.4% 4.7% 5.0% 5.3% 5.5% 4.1% 4.5%

10.0% 10.7%

14.1%

15.6% 16.0% 16.3% 16.7%

16.2%

10.9%

12.0%

6.1% 6.5% 7.0% 6.5% 7.8% 8.3% 8.3% 8.4% 8.1%

7.2%

1.3

1.7

2.1

2.4

2.7

2.9

3.2 3.3

2.2

2.5

1.0

1.3

1.7 1.9

2.4 2.4

2.8 2.9

2.0

2.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Return On Asset(%) Return On Equity(%) Gross Margin(%) EPS Cash DPS


Business Operation


Company Overview

Looking Forward

29


Strategy Overview

• The Results of Developing Overseas Markets

– Malaysia: awarded mega refinery plant project from PETRONAS

– Singapore: awarded MRT track work system project again

• Pursuit Reasonable Profit Projects and Enter Into Blue Ocean Market

– Select the projects with bargain chance, higher margin and added values

– Pursue FEED+EPs tenders then get the chances to persuade clients into EPC Lump sum for reasonable profit .

• Expand Products, Markets and Businesses

– New Products: such as gas plant,isoprene,coal to chemicals,LNG ex port termical,HSBC and C4,C5 derivatives

– New Markets: seek to alliance with local EPC companies and leverage the resources of oversea subsidiaries to expand the new markets, such as Indonesia,USA,Latin America and Myanmar

– New businesses: to acquire upstream key technologies ,such as LNG Tank and develop downstream channel partners, such as US construction company through M&A or investment

30


• Maintain Current Business Markets , Enhance Engineering Core Abilities

– Vertical integration of hydrocarbon business from two perspectives. The first is to expand the detail design engineering services to basic design services. The second is to expand construction, commissioning services to factory maintenance services

– For MRT Business, to expand previous rail experience to invade light rail market and acquire signal and control system through M&A

– Accumulating more experience in constructing refineries of titanium, nickel, copper, rare earth, coking plants

• Get More Long Term Contracts and Raise Stable Revenue Resources

– Developing petrochemical plant maintenance and incineration plant business in China and South East Asia

• Strength the Capability of the Oversea Subsidiaries

– For clients in Mainland China prefers local companies, JDEC can be representing CTCI Group to develop in China. JDEC has been involved in non-hydrocarbon business

– Advise the subsidiaries to upgrade independent bidding and project execution ability

• Efforts on Cost Saving

– Control the procurement costs strictly and reduce the operating expenses

Strategy Overview

31


Taiwan

Hydrocarbon:NTD40bn

Non-Hydrocarbon:NTD30.3bn

South East Asia

Hydrocarbon:NTD100bn


Middle East

Hydrocarbon:NTD60bn


Potential Opportunities

• Potential Opportunities

Total Amount

Hydrocarbon:NTD307.5bn


India

Hydrocarbon:NTD20bn


China


Non-Hydrocarbon:NTD1bn

America and Others


Non-hydrocarbon:NTD1.3bn

32


Thank You!

33

ctci group ctci/ investor relationshipx(1)s(btjk55ee4vrymd55zu02x1fn))/epc/...–2015 retained 1st...

Documents