CTCI Corporation The 2 nd Investor Conference, September 26 th, 2016

Transcription

1 CTCI Corporation The 2 nd Investor Conference, 2016 September 26 th, 2016

2 Agenda Operation Review 2016 Operation Strategies and Business Outlook Financial Highlights the1 st Half of

3 Operation Review

4 Operation Review Hydrocarbon Business Operations CPC Talin RFCC Plant Pipeline Project, Taiwan Saudi Kayan Ethylene Cracking Furnace No.10 Expansion Project, KSA SABIC EO/EG Revamping FEED Project, KSA PLL Dahej LNG Expansion Regas Facilities Project, India Safpet LLC PTA/PET Basic Engineering Design Project,Russia(in cooperation with Chemtex) 4

5 Operation Review Infrastructure, Environment and Power Business Operations Chung Li Sewerage System BOT Project,Taiwan Feng Shan Shi Wastewater Reclamation BTO Project, Taiwan CPC Talin Plant Wastewater Reclamation Project, Taiwan Cheng Loong Houli District Cogeneration Boilers SCR Project, Taiwan Formosa Utility Venture Ltd Utility-3 Power Plant Basic Design Project, USA 5

6 Significant Projects Awarded CTCI and the partner jointly implement all phases of this project with 35 years of concession period, serving 200,000 households and improving the life quality in southern Taoyuan. Client Project Contractor Scale Scope Location Taoyuan City Government Chung Li Sewerage System BOT Project Consortium of CTCI & HEC 156,800 CMD per day Investment, EPCC and O&M (BOT) Taiwan 6

7 Significant Projects Awarded CTCI and the partner jointly implement all phases of project with 17 years concession period, producing reclaimed water to Linhai industrial park. This is the first that reclaimed the water from municipal wastewater plant project in Taiwan. Client Project Contractor Scale Scope Location Kaohsiung City Government Feng Shan Shi Wastewater Reclamation BTO Project Consortium of HEC & CTCI 45,000 CMD per day Investment, EPCC and O&M (BTO) Taiwan 7

8 Significant Projects Awarded Once again awarded by CPC with Talin Plant wastewater reclamation project after executing CPC LinYuan Plant wastewater reclamation project. Client Project Contractor Scale Scope Location CPC Corporation CPC Talin Plant Wastewater Reclamation Project CTCI Corporation 8,000 CMD per day EPCC Taiwan 8

9 Significant Projects Awarded Awarded the Ethylene Cracking Furnace Project which comprises the installation of a new additional furnace, decoking drum, GAS dryer, etc., increasing the capacity of ethylene by 200 thousand tons. Saudi Kayan is a subsidiary of SABIC, which is among the Top 3 petrochemical companies in the world. Client Project Contractor Scale Scope Location Saudi Kayan #10 Ethylene Cracking Furnace Project CTCI Corporation 200 KTA / year EPC KSA 9

10 Significant Projects Awarded Awarded the Dahej LNG Terminal Expansion Regasification Facilities Project from Petronet LNG Limited in India. (LNG Terminal Regasification Facilities Project in Kochi was already finished) Total capacity will be increased from 15 million tons to 17.5 million tons. Client Project Contractor Scale Scope Location Petronet LNG Limited Dahej LNG Terminal Expansion Regasification Facilities Project Consortium of CTCI, CINDA 2.5 Million tons/year EPCC India 10

11 Accomplishments Review Project Execution Honors CTCI received commendations from PETRONAS for RAPID Package 1 RFCC Project CTCI/CTCI (Thailand) awarded appreciation and recognition for TOP SPP Project Achievements in COD completion and 10 Million Man-hours without LTI by Thai Oil SAMAC MMA/PMMA Project awarded Winner of the Best Project Performer by SABIC Company Honors Listed by Dow Jones Sustainability Indices (DJSI) in its Emerging Markets index Evaluated as Top 5% in Corporate Governance Evaluation System Recognized with Standard Pioneer Award by BSI Taiwan Branch Certified with AA1000 for Corporate Sustainability Report 11

12 Accomplishments Review The CommonWealth Magazine Top 2,000 Enterprises Survey Industrial Rankings: Sector Company Contractor CTCI Corp. 1 1 Contractor CTCI SEC Contractor CTCI MAC Contractor CTCI REI Investment Holding Company KD Holding 5 8 Environmental Services SESC 2 2 IT Equipment Sales and Services CTCI ASI ENR Magazine Rankings Contractor and Design Firm Rankings: Sector International Contractor Global Contractor International Design Firms Global Design Firms

13 Operation Strategies and Business Outlook 13

14 Operation Strategies and Business Outlook CTCI s Rebranding project Brand Slogan: Discover Reliable Brand Spirit: Most Reliable Brand Vision: The World s Most Reliable Engineering Services Provider 14

15 Operation Strategies and Business Outlook Maximizing Current Business: Market Expansion The business opportunities of Shale Gas in the United States Market The successful extraction of Shale Gas will help to reduce the production cost of petrochemical products, making the United States the most booming place for petrochemical investment. Owners provide numerous opportunities for building plants through plenty of investment, e.g. ethylene plants and downstream petrochemical plants CTCI Corporation already won several engineering design projects, such as FPC-USA LDPE project, Nan Ya Plastics USA EG plant expansion project, and FUV Utility-3 Power Plant project, and has several bidding opportunities for construction.. One-Belt, One-Road Approaches: Joint venture or consortium Industries: Hydrocarbon, transportation, storage facilities, energy, smart utility systems, environmental protection and green energy, etc. Advantages: Abundant experience in international EPC projects execution and robust financial ability. 15

16 Operation Strategies and Business Outlook CIS Market Considering that the hydrocarbon field provides plentiful business opportunities for building plants, CTCI has planned to partner with Chinese companies to enter the market. CTCI Beijing and Chemtex awarded a PTA/PET basic engineering design contract in Russia, laying a solid foundation to extend market reach in the future. 16

17 Operation Strategies and Business Outlook Government Policy Related Opportunities Energy Policy: Revamp old power plants and build new gas-fired power plants : the decreased electricity reserve might bring more opportunities for power plant projects in the next few years Build new LNG terminals:with the potential natural gas-fired power plants the demand for natural gas will be increased Energy conservation and carbon emission reduction:air quality improvement work for old power plants, and environmental reinforcement work for new power plants Modification of the Electricity Act, and Promotion of the Electricity liberalization:build new gas-fired power plants and cogeneration plants Wastewater Reclamation Policy:Among the six Wastewater Reclamation projects in Taiwan planned by CPAMI, CTCI awarded one project New Southeast Asia Policy:CTCI s presence in Southeast Asia countries including India, Vietnam, Indonesia, and Philippines, making it easier to seize opportunities to build plants for Taiwanese companies Track Records Power Plant Wastewater Reclamation Plant Industrial Plant LNG Terminals 17

18 Operation Strategies and Business Outlook Developing New Ventures : Taiwan's Long-Term Care Industry Cooperating with MCS company (Medical Care Service Company Inc.) to develop the aged care business in Taiwan and a MOU has been signed. 18

19 2016Q4~2017 Potential Opportunities Unit: TWD Total Amount Hydrocarbon:481.9bn Infrastructure, Environment and Power:216.1bn Middle East Hydrocarbon:300bn Infrastructure, Environment, and Power:20bn USA, CIS, and Others Hydrocarbon:28.3bn Infrastructure, Environment and Power:3.2bn China Hydrocarbon:9.8bn Infrastructure, Environment, and Power:13.9bn Taiwan Hydrocarbon:10.1bn Infrastructure, Environment, and Power:34bn South East Asia India Hydrocarbon:101.7bn Hydrocarbon:32bn Infrastructure, Environment, and Power:134.5bn Infrastructure, Environment, and Power:10.5bn 19

20 Financial Highlights 1 st Half of

21 Consolidated Sales Revenues and Breakdown 800 Unit:TWD, Billion Middle East 22% Taiwan 54% South East Asia 19% Other 2% China 3% 400 Power 31% Environmental 8% 100 Other 6% /8 Hydrocarbon 47% Transportation 3% Industrial 5% 21

22 New Contracts and Breakdown Unit: TWD, Billion Middle East 3% South East Asia 4% Taiwan 90% China 3% Other 2% Industrial 6% Transportation 1% Hydrocarbon 8% 100 Environmental 81% Power 2% /8

23 Backlog and Breakdown 2,500 Unit: TWD, Billion Middle East 24% 2, South East Asia 17% 1, Taiwan 57% China 1% Other 1% 1,000 Power 12% Environmental 35% 500 Other 3% Industrial 2% /8 Hydrocarbon 42% Transportation 6%

24 Consolidated Income Statement in 1 st Half of 2016 Unit:TWD,Thousand 2016/06/ /06/30 YOY Sales Revenues 31,788, % 29,863, % 6.4% Operating costs (28,851,536) -90.8% (27,454,289) -91.9% 5.1% Gross Profit 2,937, % 2,409, % 21.9% Operating expenses (927,869) -2.9% (766,764) -2.6% 21.0% Operating income 2,009, % 1,642, % 22.3% Total non-operating income and expenses 7, % (91,803) -0.3% 108.4% Profit before income tax 2,016, % 1,550, % 30.1% Income tax expense (465,865) -1.5% (322,580) -1.1% 44.4% Profit for the period 1,551, % 1,228, % 26.3% Profit attributable to Owners of the parent Total basic earnings per share 1,028, % 988, % 4.1% % 24

25 Consolidated Balance Sheet in 1 st Half of 2016 Unit: TWD, Thousand 2016/06/ /06/ /06/ /06/30 Current assets* 48,050,606 41,876,995 Current liabilities 38,019,557 31,980,460 Financial assets 1,083,283 1,276,439 Non-current liabilities 5,676,556 6,157,411 Non-current assets 14,558,797 14,839,696 Long-term borrowings 2,437,150 2,769,150 Property, plant and equipment 6,873,492 6,933,450 Other non-current liabilities 3,239,406 3,388,261 Intangible assets 86, ,772 Total Liabilities 43,696,113 38,137,871 Other non-current assets 7,599,042 7,784,474 Total equity 18,913,290 18,578,820 Total assets 62,609,403 56,716,691 Total liabilities and equity 62,609,403 56,716,691 **Cash and cash equivalents:nt$9.8bn 25

26 Dividend Payout EPS Cash DPS Cash Dividend Payout Ratio(%) Unit:TWD % 89% 90% 89% 89% % 83% 86% 85% 90% 79% 80% % % % 50% 40% % % % % 26

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