the 1 investor conference,2016 ctci corporationctci corporation operation review - 2015 epc project...

CTCI Investment Relation

The 1st Investor Conference,2016 CTCI Corporation

March 29th , 2016

The Most Reliable Global Engineering Service Provider

2

CTCI CORPORATION

Operation Review - 2015

Operation Strategies and Business

Outlooks

Financial Highlights - 2015

• Consolidated Sales Revenues, New Contracts and Backlog

• 2015 Financial Statements

• Dividend Payout

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CTCI CORPORATION


Business

Hydrocarbon Business Operations

• Domestic：

Awarded Talin Plant #3 RDS & #8 SRU EPC project from CPC Corporation

• Overseas：

Awarded mega petrochemical plant EPC project of ORPIC in Oman by joint

venture with CB&I

Awarded 2 basic design projects for petrochemical plant of Formosa Group in

the USA

Awarded a front-end engineering design (FEED) project from SABIC

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CTCI CORPORATION


Business

Infrastructure, Environment and Power Business Operations

• Domestic：

Awarded Taichung Power Plant Unit 1 to 4 AQCS Retrofit project

Awarded Taipei MRT Wanda line construction procurement services project

Awarded Taipei MRT Xinchuang Luzhou Line Min-Jeh BSS Cable Re-wiring

project

• Overseas：

Awarded Ti-Sponge Plant EPC project in Saudi Arabia by joint venture with

Chiyoda Corp.

Awarded the Gali Batu Depot trackwork project in Singapore.

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CTCI CORPORATION


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.

• Won 2 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.

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CTCI CORPORATION


Project Taichung Power Plant Unit 1 to 4 AQCS

Retrofit Project

Client Taiwan Power Company

Contractor CTCI/Mitsubishi Corporation/Mitsubishi

Hitachi Power Systems

Capacity NA

Service Scope EPC

Location Taiwan

Taichung,Taiwan

• Once completed, it will reduce emissions of

particulate pollutants, SOx and NOx by 61

tonnes/year (3.3%), 503 tonnes/year (3.2%),

and 2,154 tonnes/year (9.9%) respectively.

• Demonstrated CTCI’s technological capability

in Air Quality Control System (AQCS) for

beating International competitors.

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CTCI CORPORATION


Project Liwa Plastic Industrial Complex Steam

Cracker and U&O Package

Client Oman Oil Refineries and Petroleum

Industries Company, ORPIC

Contractor CTCI Corporation and CB&I

Capacity Steam Cracker 870 KTA (Kiloton

Annually)

Service Scope EPC

Location Oman • The biggest and the most important package

of Liwa Plastics Industrial Complex.

• The scope of work includes EPC and

commissioning for a 870 kTA ethylene

production steam cracker plant , a 498 kTA

selective hydrogenation plant, a 87 kTA

methyl tertiary butyl ether plant, a 39 kTA

butene-1 plant , and a 121 kTA Pygas plant.

Sohar Port, Oman

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CTCI CORPORATION

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


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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


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CTCI CORPORATION

Project YNP Ti-sponge EPC Project

Client Toho Titanium/Advanced Metal Industries

Cluster Joint Venture

Contractor CTCI /Chiyoda 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.

煉鈦工廠


Titanium plant

Titanium tetrachloride

Plant

Titanium dioxide plant

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CTCI CORPORATION

Project Gali Batu depot trackwork 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 has the highest market share of all undergoing trackwork projects in Singapore

Singapore


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CTCI CORPORATION


Company Honors

• Retained “Top 1 in the Contractor Sector” by the CommonWealth Magazine

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

• Ranked as "Grade A++" in the “Information Disclosure and Transparency Rankings"

• Public Construction Golden Quality Award for CPC Talin Flare Gas Recovery System Project

ENR Rankings

• Develop international market with commendable results

Contractor 2014 2015 Design Firms 2014 2015

Cogeneration NA 4 Refineries and Petrochemical Plants

NA 14

Solid Waste NA 9 Petroleum 42 37

Refineries and Petrochemical Plants

NA 24

Manufacturing 38 42

Petroleum 48 48

Power NA 50

Ranking 2014 2015

International Contractor

131 122

Global Contractor 160 149

International Design Firms

114 103

Global Design Firms 144 136

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CTCI CORPORATION

Operation Strategies and Business Outlooks

Corporate Sustainability (CSR)

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

• Awarded “Green Enterprise Award” from British Standards Institution

• Awarded “Taiwan Corporate Sustainability Awards” from Taiwan Institute for Sustainable Energy

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

• Certified with “AA1000 Assurance Standard” by the British Standards Institution

• Sponsored Sunshine Social Welfare Foundation to Establish Minsheng Rehabilitation Center

Established CTCI Education Foundation

• Cultivating engineering talents: Grant scholarships for college students

• Reward academic research: Set up and promote education forum on green energy

• Cultivating a lifelong learning environment: Initiate neighborhood activities and promote education of

slow living

• Enterprise volunteering: Promote social affairs and sponsor public events

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CTCI CORPORATION



Outlooks


• Consolidated Sales Revenues,New Contracts and Backlog


• Dividend Payout

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CTCI CORPORATION


Operation Strategies

Maximizing Current Business through Horizontal and Vertical Expansion

• Enter U.S. market for acquiring petrochemical plant projects; Enter CIS market by building partnership

and reinforcing the relationship with local clients for potential business opportunities

• Support domestic affiliates to broaden the scope of business while upgrading their capabilities to

become the leaders in their respective industries.

• Accelerate mergers and acquisitions activities to acquire new technologies and expand new markets

• Enlarge businesses with stable and long tenure characters

• Develop superhigh pressure pipeline system design ability

New Business ,New Products

• Maintenance: cultivate Total Maintenance Service capability along with EPC projects

• Senior-oriented industry: actively discuss with strategic partner

• Acquired the patent of Flare Gas Recovery System

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CTCI CORPORATION


Optimization of engineering services to strengthen the core competitiveness

• Applied the concept of Industry 4.0 on EPC project management

Brand Building

• Full Marketing ,Global Marketing: Promote CTCI as The Most Reliable Global Engineering

Service Provider

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CTCI CORPORATION


Business Outlooks

Business Development: One-Belt, One-Road

• Areas and Approaches

Approaches: Joint venture or consortium with partners

Areas: Transportation, storage facilities, energy, smart utility systems, environmental

protection and green energy, etc.

• Advantages of CTCI Corporation

Abundant experience in international EPC Project execution.

Diversified business lines have been expanded from refinery, chemical and

petrochemical into power, steel & nonferrous, storage & terminal, infrastructure,

environmental engineering and waste-to-energy fields.

Collaborate with many internationally well-known engineering companies, which

achieved excellent results

• Status

Signed several strategic cooperation framework agreements with several partners,

comprising regional cooperation along “One-Belt ,One-Road ” countries

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CTCI CORPORATION


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

Preparing biddings of several petrochemical construction projects

Business Development: CIS

• Abundant oil and gas resources in Russia and Kazakhstan

Many project opportunities foreseeable pertaining to petrochemical field.

Form alliances with partners and reinforce the relationship with local clients for potential business.

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CTCI CORPORATION


Business Development : India

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

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

terminal projects

Keep contact with Taiwanese investor and provide them with customized engineering service

Continue seek to participate in steel mill projects and pursue suitable power and municipal solid

waste incineration projects.

Business Development :Middle East

• Bidding opportunities from Iran and six Gulf countries

National tactical plan (e.g. Oman)

Due to the removal of exporting limitation on oil and natural gas, Iran will resume its hydrocarbon

industry development.

Bidding opportunities are abound in the fields of steel, nonferrous, power desalination, air pollution

control, MRT Systems, etc., the Company will continuously bid for appropriate projects actively.

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CTCI CORPORATION

Potential Opportunities

Taiwan Hydrocarbon:NT$10.1bn Infrastructure ,Environment and Power:NT$34.3bn

South East Asia Hydrocarbon:NT$80.8bn Infrastructure ,Environment and Power:NT$114.7bn


India Hydrocarbon:NT$18.5bn Infrastructure ,Environment and Power:NT$21.0bn

Total Amount Hydrocarbon: NT$385.6bn Infrastructure ,Environment and Power:NT$199.0bn

China Hydrocarbon:NT$11.6bn Infrastructure ,Environment and Power:NT$8.0bn

USA and Others Hydrocarbon:NT$34.6bn Infrastructure ,Environment and Power:NT$1bn

Middle East Hydrocarbon:NT$230bn Infrastructure ,Environment and Power:NT$20bn

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CTCI CORPORATION



Outlooks


• Consolidated Sales Revenues, New Contracts and Backlog


• Dividend Payout

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CTCI CORPORATION

Unit:NT$,Billion

Consolidated Sales Revenues and Breakdown

Taiwan 56%

Middle East 19%

Malaysia 10%

Thailand 6%

China 5% Singapore 3%

Other 1%

Power 37%

Refinery 21% Petrochemical

20%

Infrastructure 10%

Incineration 5%

Other 5% Hi-Tech 2%

56.3

60.5

52.2

57.7

67.1

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015

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CTCI CORPORATION

New Contracts and Breakdown

Unit:NT$,Billion

79.5

60.2

66.9

77.9

64.5

0

10

20

30

40

50

60

70

80

90

2011 2012 2013 2014 2015

Middle East 69%

Taiwan 18%

Malaysia 6%

China 4% Others 3%

Petrochemical 65%

Refinery 10%

Steel and Non Ferrous Metals

6%

Infrastructure 6%

Other 6%

Hi-Tech 4%

Air Pollution Control 3%

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CTCI CORPORATION

Backlog and Breakdown

Unit:NT$,Billion

154.6 153.2

163.5

187.1 190.5

100

110

120

130

140

150

160

170

180

190

200

2011 2012 2013 2014 2015

Taiwan 45%

Middle East 30%

Malaysia 19%

Singapore 3% Other 2%

China 1%

Petrochemical 32%

Refinery 23%

Power 20%

Incineration 11%

Infrastructure 9%

Other 3% Steel and Non Ferrous Metals

2%

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CTCI CORPORATION

Unit:NT$,Thousand

2015/12/31 2014/12/31 YOY

Sales Revenues 67,057,640 100.0% 57,691,937 100.0% 16.2%

Operating costs (61,621,562) -91.9% (53,317,572) -92.4% 15.6%

Gross Profit 5,436,078 8.1% 4,374,365 7.6% 24.3%

Operating expenses (2,434,166) -3.6% (1,672,034) -2.9% 45.6%

Operating income 3,001,912 4.5% 2,702,331 4.7% 11.1%

Total non-operating income and expenses

318,740 0.5% 462,501 0.8% -31.1%

Profit before income tax 3,320,652 5.0% 3,164,832 5.5% 4.9%

Income tax expense (750,509) -1.2% (628,436) -1.1% 19.4%

Profit for the period 2,570,143 3.8% 2,536,396 4.4% 1.3%

Profit attributable to Owners of the parent

2,040,610 3.0% 2,092,199 3.6% -2.5%

Total basic earnings per share 2.69 2.79 -3.6%

2015 Consolidated Income Statement

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CTCI CORPORATION

Unit:NT$,Thousand

2015/12/31 2014/12/31 2015/12/31 2014/12/31

Current assets* 45,298,807 42,090,608 Current liabilities 34,389,605 31,033,931

Financial assets 1,479,308 2,469,756 Non-current liabilities 6,112,898 6,365,262

Non-current assets 14,931,779 14,792,740 Long-term borrowings 2,611,950 2,926,350

Property, plant and equipment

7,001,676 7,026,878 Other non-current liabilities

3,500,948 3,438,912

Intangible assets 121,469 118,638 Total Liabilities 40,502,503 37,399,193

Other non-current assets

7,808,634 7,647,224 Total equity 19,728,083 19,484,155

Total assets 60,230,586 56,883,348 Total liabilities and equity

60,230,586 56,883,348

*Cash and cash equivalents:NT$5.6bn

2015 Consolidated Balance Sheet

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CTCI CORPORATION

Dividend Payout

1.32

1.67

2.13 2.41

2.65 2.91

3.22 3.32

2.22

2.51 2.69

1.00

1.32

1.74 1.92

2.37 2.42

2.76 2.84

1.99 2.23

2.40

82%

92% 87%

80%

89%

83% 86% 86%

90% 89% 89%

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

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

EPS Cash DPS Cash Dividend Payout Ratio(%)

Unit:NT$

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the 1 investor conference,2016 ctci corporationctci corporation operation review - 2015 epc project...

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