upc technology corporation investor conference · fumaric acid pvc resin ... ihs report forecasted...

UPC Technology CorporationInvestor Conference

13 November, 2018

2018 UPC Technology Corporation Investor Conference

CONTENT

1. Company Introduction

2. Development Strategy

3. Financial Performance

4. Q & A


Our market covers Taiwan, China, Southeast Asia, Northeast Asia, South Asia, USA, Canada, the Middle East and New Zealand.

> 10,000 customers globally

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• Founded：August 1976

• Chairman：Matthew F.C. Miau

• President：Yi-Shao Ko

• Revenue (Y2017)：NT$50.6 Billion (US$1.64 Billion)

• Number of Employees：~2000

• Taiwan Stock Exchange listed (Y1989)：code 1313

Core

Chemicals

Specialty

Chemical

Logistics Service

1. UPC Introduction


China

Taiwan

Malaysia

UPC’s Deployment in Asia

Manufacturing/Logistics Center

Taizhou, Jiangsu

Zhongshan, Guangdong

Zhenjiang, Jiangsu

Zhuhai, Guangdong

Linyuan, Kaohsiung

UPC Taipei office

UPCHK

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Panjin, Liaoning

Nanchong, Sichuan

Kuantan, Malaysia


Phthalic Anhydride

Maleic Anhydride

Fumaric Acid

PVC Resin

General Plasticizer Phthalate

• DEHP• DNOP• DINP• DIDP • DPHP• DBP• DIBP

Terephthalate (DOTP)

Trimellitate

(TOTM, TNOTM)

Adipate (DOA)

UPC Business

Specialty Plasticizer

Hydrogenated (UN899)

Polymeric (UN600series)

Adipate (DINA, DIDA)

Benzoate (DEGDB)

Maleate (DOM, DBM)

Fumarate (DOF)

Bio-based

• Sebacate (DOS, DBS)

• Citrate (ATBC)

• Epoxide (ESBO)

• Succinate (UN9429)

UPR

Polyester Polyol

Fatty Ester

Lubricant Ester

Terminal operation

Tank farm storage

Warehouse storage

Transportation

Import / Export handling service

Trading

Engineering

Energy Service

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Core

Business

Specialty Chemical

Business

Logistics and

Service Business


The Supply Chain UPCproduct

Raw Material

Application


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Global #1 PA and Plasticizer supplier


Note: 1. The production capacity of Plasticizer is on the basis of the DEHP production capacity.2. The production capacity of Plasticizer and PA includes the volume of captive use .

2. DEVELOPMENT STRATEGY

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Plasticizer + 120 KTPA

PVC + 150 KTPA

Unit: KTPA

2,500

2,000

1,500

1,000

500

Capacity in end - 2018

Expansion capacity in 2019

Total capacity of 3410 KTPA in end 2018Total capacity of 3680 KTPA in end 2019


PVC Integration by Feedstock in 2017 (China)

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The PVC Outlook

Source：IHS / UPC (November 2018)2018 UPC Technology Corporation Investor Conference

Global demand for PVC is continuously growing and the capacity expansion can not keep up with the growth for demand. IHS report forecasted that the supply for PVC will still be tight.

Growth for global demand for PVC is 5.3% per year, and for demand in Asia and China is 6.3% per year.

Demand for PVC in China is about 17.7 million tons per year on 2017. The high pollution and high energy consumption carbide-based PVC plants are strictly limited to add new capacity and force by central Gov. to be phased out in China.

UPC will continue to expand PVC capacity in China and to increase long-term competitive advantage by vertical integration.

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The PVC Outlook


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Global Demand of Plasticizer: 8550KTPA

The Plasticizer Outlook


2017 Global plasticizer demand distribution

Source： UPC (November 2018)

Continues growth of global PVC demand driving the demand of plasticizers to increase.

World demand for plasticizers is continuously growing at a rate about 3% per year, and the growth for plasticizers in Asia and China is about 6.3% per year.

In 2017, the total demand for plasticizers in the China market is 4.6 million tons, accounting for 54% of the global market, with a growth rate about 6.3% over the past five years.

Phthalate plasticizers accounted for 65% of the world demand of plasticizers in 2017. Meanwhile, the demand for non-phthalate plasticizers is growing rapidly, including:• UN899• Bio-based plasticizer(incl. ESBO/EFAME…etc.)• Polymeric Plasticizer.. etc.

World consumption of non-phthalate plasticizers is forecasted to grow at an average annual rate about 5.8%.

UPC continuously develop non-phthalate plasticizers and expand the capacity to keep leading position in the plasticizer market.


The Plasticizer Outlook

3. Financial Performance

2013 ~ 2018 Q3 Consolidated Revenue



2012 ~ 2017 Q3 Production and Sales Volume


2018 Q3 YTD Revenue Breakdown by Products (%)

29.36.6

Unit: Billion (NTD)


2012~2017 Q3 Net Income after Tax & EPS


2013 ~ 2018 Capital Expenditures

Billion(NTD)

www.upc.com.tw

THANK YOU

UPC Technology Corporation

upc technology corporation investor conference · fumaric acid pvc resin ... ihs report forecasted...

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