CTCI Corporation The 1 st Investor Conference,

Transcription

1 CTCI Corporation The 1 st Investor Conference,

2 Operation Review 2016 Agenda Business Outlook and Operation Strategies Financial Highlights

3 Operation Review

4 New Contracts and Breakdown Unit: NT$, Billion South East Asia 17% China 3% India 2% Middle East 4% Taiwan 73% Others 1% Transportation 2% 30 Environmental 60% 20 Power 22% 10 0 Industrial 4% Other 2% 4 Hydrocarbon 10%

5 Backlog and Breakdown South East Asia 21% 250 Unit: NT$, Billion China 1% India 1% Taiwan 55% Middle East 21% Other 1% 100 Environmental 34% Transportation 5% 50 Power 18% Hydrocarbon 39% Industrial 4%

6 Accomplishments Review Project Execution Honors SAMAC MMA/PMMA Project awarded SABIC Green Flag for Best EHSS Performance Three Times CPC Talin No. 11 DHDS Project and Taichung LNG Terminal Expansion Project honored with MOEA Public Construction Quality Award Thai Oil TOP SPP Project awarded appreciation and recognition for achievements in COD completion and 10 Million Man-hours without LTI Petronas RFCC project awarded Best Performance for continuously leading EPC progress among all EPC contractors 6

7 Accomplishments Review Company Honors Won the highest honor of "The 16th Public Construction Golden Quality Award in design and construction excellence awards under the facilities category Honored with Green Sustainability Practice Award by British Standards Institution Recognized with five Achievements in 2016 Taiwan Corporate Sustainability Awards Sustainable Corporate Award gold medal of service industry for Taiwan Top 50 Corporate Sustainability Report Award Growth through Innovation Award Transparency and Integrity Award Group Chairman John T. Yu was honored as the Outstanding Corporate Sustainability Professional Listed by Dow Jones Sustainability Indices (DJSI) in its Emerging Markets index Evaluated as Top 5% in Corporate Governance Evaluation System John T. Yu was honored as the 2016 Top 50 CEO by Harvard Business Review 7

8 Accomplishments Review The CommonWealth Magazine Top 2,000 Enterprises Survey 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 Sector International Contractors Global Contractors International Design Firms Global Design Firms

9 CSR Fulfillment Records and benefits of indicative green engineering resulted in Electricity consumption saved 4,304,030Mwh equivalent to 14.7days of thermal power plant of Taiwan Power Co. Cumulative CO 2 reduction million metric tons equivalent to151,640 times the annual carbon absorption of Daan Forest Park in Taipei City Cumulative water saved million cubic meters equivalent to 152 days of water use by Taipei City Records and benefits of O&M for incineration plants in 2016 The largest O&M institution of incineration plants for city garbage in Taiwan Electricity generated can supply up to 286 thousand households Records and benefits of O&M by GDDC for photovoltaic power plants in 2016 Current power generated: 28,960 thousand kwh Power generated by the end of 2017:41,510 thousand kwh Water resources management Chungli Sewerage System BOT Project: a capacity of 156,800 CMD Fengshan Shi Wastewater Reclamation Plant BTO Project: a capacity of 45,000 CMD CTCI Education Foundation established in

10 Significant Projects Awarded Taiwan CTCI and the partner jointly implement all phases of this project within 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 Project, BOT Consortium of CTCI & HEC 156,800 CMD per day Investment, Design, Procurement, Construction and O&M (BOT) Taiwan Taoyuan 10

11 Significant Projects Awarded Taiwan CTCI and the partner jointly implement all phases of project with 17 years concession period, producing reclaimed water to Linhai industrial park This project is the first municipal wastewater reclamation BTO project in Taiwan Client Project Contractor Scale Scope Location Kaohsiung City Government Feng Shan Shi Wastewater Reclamation Project, BTO Consortium of HEC & CTCI 45,000 CMD per day Investment, Design, Procurement, Construction and O&M (BTO) Taiwan Kaohsiung 11

12 Significant Projects Awarded Taiwan To release the risk of power shortage, Ministry of Economic Affairs and Taiwan Power Company bought two Simple Cycle Generators with capacity of 600MW from GE company by public bid. CTCI is in charge of the EPC project (except for the generators and HV equipment) Client Project Contractor Sub-Contractor Capacity Scope Location Taiwan Power Company Dah-Tam Gas-Fired Simple Cycle Generators Emergency Project GE company CTCI 2 x 300MW Design, Procurement, Construction, and Commissioning ( Except for the generators and HV equipment) Taiwan Taoyuan 12

13 Significant Projects Awarded USA The first EPC project awarded by FPC USA, utilizing modularization solution to achieve higher cost effectiveness and efficiency Client Project Contractor Module No. Scope Location Formosa Plastics Corporation USA Offsite Pipe Rack Modularization & Erection Project, EPC CTCI 28 modules Design, Procurement and Construction USA Taxes 13

14 Significant Projects Awarded USA Awarded cogeneration power plant project by FPC USA for basic engineering design work, extending the power business to the USA Client Project Contractor Capacity Scope Location Formosa Plastics Corporation USA FPC USA Utility-3 Power Plant Basic Design Project CTCI 230MW Basic Engineering Design USA Taxes 14

15 Significant Projects Awarded Middle East Awarded the Ethylene Cracking Furnace Project which comprises the installation of a new additional furnace, 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 Capacity Scope Location Saudi Kayan Ethylene Cracking Furnace and Ethylene Plant Expansion Project, EPC CTCI 200 thousand tons per year Design, Procurement and Construction KSA 15

16 Significant Projects Awarded India Awarded Dahej LNG Terminal Expansion EPC Project by Petronet Client Project Contractor Capacity Scope Location Petronet LNG Limited Dahej LNG Terminal the 3 rd phases Expansion Regasification Facilities Project, EPC Consortium of CTCI, CINDA 2.5 million tons per year Design, Procurement, Construction, and Commissioning India 16

17 Significant Projects Awarded CIS This is the first project for CTCI to enter the CIS market, successfully developing the new market given CTCI s abundant experiences of PTA plants Client Project Contractor Capacity Scope Location SafPet LLC SafPet LLC PTA/ PET Basic Engineering Design CTCI PTA 210 KTA / PET 250 KTA Basic Engineering Design Russia 17

18 Business Outlook and Operation Strategies 18

19 Business Outlook and Operation Strategies Taiwan Market Review Business Outlook Operation Strategies The new government proposed the Forward-looking Infrastructure Construction Project which includes green energy, waterworks, digital development, rail transportation, and urban and rural developments Energy Policy The nuclear free policy and the decrease of Percent Operating Reserve may bring more opportunities for power plant expansion projects in the next few years CPC investment plan amounted NT$ 200 billion includes the Taoyuan Refinery Revamping Project, The Third LNG Terminal Project, CPC Talin Tank Farm Project and related projects for high-value petrochemical product Wastewater Reclamation Policy: 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 Transportation Policy: MRT Projects such as Keelung Light Rail Transit, Taoyuan Green Line, Wanda Line and Xinyi Eastern Extension and Xinzhuang Depot E&M System Project Railway Projects such as railway double-track electrification, underground and elevated railway, etc. Continuously look for the domestic investments plan for high-value petrochemical product Continuously maintain close cooperation with major equipment suppliers such as GE, Mitsubishi Heavy Industries, and Siemens, etc. to stabilize the domestic power plant market 19

20 Business Outlook and Operation Strategies USA Market Review The cheap shale gas significantly reduces the downstream petrochemical material cost, and creates more opportunities for the new investment on petrochemical More incentive for international petroleum companies to invest in petrochemical industry in US Business Outlook Awarded some Engineering and EPC projects, and is bidding for several mega projects such as: Formosa Texas LDPE and EG plants Formosa Group Louisiana petrochemical complex (US$ 10 billion dollars) ExxonMobil and SABIC petrochemical investment (US$ 10 billion dollars) The energy policy under Trump s government will benefit CTCI to enter downstream petrochemical market in US Operation Strategies Hire local management team and build-up the comprehensive EPC capability Seek for the best strategic alliance to enter to the LNG terminal fields Considering the high labor cost in USA, CTCI will leverage the modularization to minimize the site manpower 20

21 Business Outlook and Operation Strategies Middle East and Africa Market Review The members of Gulf Cooperation Council prefer to invest in downstream industry and high-value products following the drop of oil price in 2014 Business Outlook Major potential opportunities are downstream petrochemical plants based on strategic plan for country economy development and private investment, such as : Duqm refinery project in Oman Aramco oil and gas Industry project in KSA Qatar Petroleum Corporation petrochemical expansion project in Qatar Borouge ethylene expansion project in Abu Dhabi Sonatrach new refinery projects in Algeria, Africa Operation Strategies To cultivate the relationship with clients such as SABIC, and Qatar Petroleum, etc. Develop the new market such as Kuwait, UAE, Iran and Africa 21

22 Business Outlook and Operation Strategies Southeast Asia and India Market Review The Southeast Asia and India have better fundamentals due to the less effect by Europe and America, the government policy impulse and the increasing investments by KSA, which are beneficial for infrastructures and petrochemical investments The RAPID petrochemical EPC projects in Malaysia, the refinery project in Indonesia, and the hydrocarbon and LNG projects in India The increasing demand for power brings in various business opportunities for IPP power plant projects; there are also infrastructures like transportation and waste to energy plants Business Outlook Operation Strategies Continuously strive for Petronas RAPID projects Several projects over US$10 billion dollars such as Thai Oil CFP, and Pertamina Balikpapan Refinery, etc. Coal-fired power plants in Vietnam, gas-fired power plants in Malaysia and Thailand, waste to energy plants in Philippines and MRT projects in Singapore, which are all potential opportunities in the future Actively enter the petrochemical maintenance fields and chemical markets in Malaysia Prudently choose partners to jointly develop the petrochemical market in Indonesia 22

23 Business Outlook and Operation Strategies CIS Market Review The abundant petroleum and LNG resources in Russia and Kazakhstan provide many opportunities in petrochemical industry. Nevertheless, the project financing is required given the tight budget for the owners Business Outlook Awarded the first PTA/PET basic design project in Russia in 2016 and now aggressively seek for the following detail design work Kazakhstan is planning to build PTA/PET plant, and CTCI/CTCI Beijing will cooperate to strive for the FEED project and provide the project financing for the owner Operation Strategies CTCI and CTCI Beijing will acquire the ECA for the owner to easily receive the project financing support by cooperating with China Export & Credit Insurance Corporation (Sinosure), which is beneficial for CTCI to win the project 23

24 2017~2018Q2 Potential Opportunities Unit:NT$ Total Amount Hydrocarbon:563.7bn Infrastructure, Environment and Power:101.1bn CIS and Others: Hydrocarbon:1.5bn Infrastructure, Environment and Power:0.6bn USA Hydrocarbon:92.9bn China Hydrocarbon:10bn Infrastructure, Environment, and Power:2.6bn Taiwan Middle East Hydrocarbon:23bn Hydrocarbon:302.3bn Infrastructure, Environment, and Power:29.9bn Infrastructure, Environment, and Power:0.5bn India Hydrocarbon:44.0bn South East Asia Hydrocarbon:90bn Infrastructure, Environment, and Power:67.5bn 24

25 Financial Highlights

26 Consolidated Sales Revenues and Breakdown 80 Unit: NT$/Billion South East Asia 18% China 3% Middle East 26% 50 Taiwan 50% Other 3% Transportation 2% Power 27% Environmental 7% Industrial 11% Other 3% Hydrocarbon 50% 26

27 2016 Consolidated Income Statement Unit: NT$, Thousand 2016/12/ /12/31 YOY Sales Revenues 70,509, % 67,057, % 5.1% Operating costs (64,323,846) -91.2% (61,621,562) -91.9% 4.4% Gross Profit 6,185, % 5,436, % 13.8% Operating expenses 2,023, % 2,434, % -16.9% Operating income 4,162, % 3,001, % 38.7% Total non-operating income and expenses (184,055) -0.3% 318, % % Profit before income tax 3,978, % 3,320, % 19.8% Income tax expense (964,753) -1.4% (750,509) -1.1% 28.5% Profit for the period 3,013, % 2,570, % 17.3% Profit attributable to Owners of the parent Total basic earnings per share 2,222, % 2,040, % 8.9%

28 2016 Consolidated Balance Sheet Unit: NT$, Thousand 2016/12/ /12/ /12/ /12/31 Current assets* 51,394,621 45,298,807 Current liabilities 40,297,705 34,389,605 Financial assets 1,479,172 1,479,308 Non-current liabilities 5,737,135 6,112,898 Non-current assets 14,830,268 14,931,779 Long-term borrowings 2,265,150 2,611,950 Property, plant and equipment 6,876,224 7,001,676 Other non-current liabilities 3,471,985 3,500,948 Intangible assets 127, ,469 Total Liabilities 46,034,840 40,502,503 Other non-current assets 7,826,358 7,808,634 Total equity 20,190,049 19,728,083 Total assets 66,224,889 60,230,586 Total liabilities and equity 66,224,889 60,230,586 *Cash and cash equivalents:nt$13.8bn 28

29 Dividend Payout Unit: NT$ EPS Cash DPS Cash Dividend Payout Ratio(%) % 80% 89% 83% 86% 85% 90% 89% 89% 89% 100% 90% 80% % 60% 50% 40% % % % % 29

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