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CTCI Corporation
The 2nd Investor
Conference, 2019
2019.09.25
Agenda
• Operation Review – the 1st half of 2019
• Business Outlook
• Financial Highlights – the 1st half of 2019
2
Operation Review – the 1st half of 2019
3
Copyright © 2016 CTCI All Rights Reserved.
Groundbreaking Ceremony for
CTCI 2nd HQ
Company Honors
4
CTCI, CTCI ASI, ECOVE evaluated
as Top 5% of the 5th Corporate
Governance Evaluation
CTCI Corp, CTCI ASI, ECOVE, won
the 2018 Excellence in Corporate
Social Responsibility Award by
CommonWealth Magazine
A member of DJSI component for 5
consecutive years
Copyright © 2016 CTCI All Rights Reserved.
Company Honors
• The CommonWealth Magazine Top 2,000
Enterprises Survey
• ENR Magazine Rankings
5
Company Sector 2018
CTCI
Contractor 1
Top 650 Service Enterprises 28
Sector 2019
Top 225 International Design Firms 80
Top 250 International Contractors 73
Top 250 Global Contractors 139Company Sector 2018
CTCI SEC Contractor 38
CTCI MAC Contractor 37
ECOVE Investment Holding Company 9
ECOVE
ESCEnvironmental Services 2
ECOVE
WMCEnvironmental Services 9
CTCI ASIIT Equipment Sales and
Services36
Copyright © 2016 CTCI All Rights Reserved.
CTCI/Chiyoda Joint Venture
Titanium Sponge Plant Project
in Yanbu honored as
GCC Winner in the Industrial
Project of the Year category of
2019 MEED Projects Awards
Honors
6
Breaks safety record in LPIC
EPC1 Steam Cracker with Off-
Site Work & Utilities Project,
achieving
60 Million Man-hours without
Lost Time Injuries
CTCI HQ Building Certified
to LEED v4 Gold Level
P1 RAPID Project in Malaysia
achieved 23 Million Safe Man-
Hours without Lost Time
Incident
Selected as an
Outstanding Contractor for
Green Engineering Practices
for Taipower Tung Hsiao Power
Plant Renewal Project
Wins 1st Prize for Safety and
Health Excellent Contractor
for Taipower Talin Power Plant
Renewal Project
Copyright © 2016 CTCI All Rights Reserved.
New Contracts and Breakdown
7
64.5
85.6
44.4
101.7
17.8
0
20
40
60
80
100
120
2015 2016 2017 2018 2019-Aug
Unit: NT$, Billion
Taiwan 43%
Southeast Asia 32%
China 21%
US 3%India 1%
Power 35%
Environmental24%
Hydrocarbon23%
General Industry8%
Others 7%
Transportation3%
Copyright © 2016 CTCI All Rights Reserved.
• Taipei Wanda Line Phase II
• Taipower Datan Unit #7 Expansion Project
• Offshore Wind Farm Projects
(5 projects)
• Ho-Ping Power Station Air
Quality Control System
• STSP Industrial Wastewater
Treatment Plant Project
• Chimei 60 MW Gas Fired
Cogen plant Project
• STSP Wastewater Reclamation Plant
• Diesel Unit project
Projects to announce the bidding result by the end of 2019
• SABIC Petrochemical Plant
• Malaysia IPP Power Plant
• ADNOC Refining Gasoline &
Aromatics Project
• Petrokemya Olefins-I Project
Major projects to announce the bidding result by the
end of 2019 values at NT$113 billion.
8
Taiwan 38%
Middle East 32%
Southeast Asia 22%United
States 8%
Copyright © 2016 CTCI All Rights Reserved.
Backlog and Breakdown
9
190.5
203.2
166.3
208
188.8
0
50
100
150
200
2015 2016 2017 2018 2019-Aug
Unit: NT$, Billion
Taiwan 63%
Southeast Asia20%
China 7%
US 5%India 3%
Middle East 2%
Environmental41%
Hydrocarbon30%
General Industry10%
Power 10%
Transportation8%
Others 1%
Business Outlook
10
Copyright © 2016 CTCI All Rights Reserved.
Business Outlook
– Hydrocarbon (1)
1. The US market continues to flourish:
The first wave of ethylene investment in the US has been completed and
put into production; international companies continue to carry out the
second wave of ethylene and its downstream investment plans,
including:
ExxonMobil - Texas
SABIC - Texas
(CTCI has been awarded MEG petrochemical project by ExxonMobil
and SABIC)
Aramco Motiva - Texas
Lotte Corp. - Louisiana
Formosa Group - Louisiana
(CTCI has been awarded FEED project of Cracker, EG and PDH)
Mitsubishi Chemical Company – Texas or Louisiana11
Copyright © 2016 CTCI All Rights Reserved.12
2. Foreign investment in China:
The Chinese government continues to relax restrictions on foreign
investments, making several international companies decide to invest in new
integrated complex projects in China, and each investment is estimated to
be of US$10 billion worth:
BASF – Guangdong Petrochemical Complex Project
Aramco – Liaoning Petrochemical Complex Project
Shell/CNOOC – Guangdong Petrochemical Complex Project
ExxonMobil – Guangdong Petrochemical Complex Project
SABIC/FHCPEC – Fujian Petrochemical Complex Project
Business Outlook
– Hydrocarbon (2)
Copyright © 2016 CTCI All Rights Reserved.13
3. Taiwanese petrochemical companies
invest in new capacity in China:
With the raise of environmental awareness in Taiwan, environmental
assessments on new hydrocarbon plants have become stricter. Therefore,
several Taiwanese petrochemical companies turn to China for new
investment opportunities.
Chimei Corporation
Formosa Chemical & Fibre Corporation
Nan Ya Plastic Corporation
Grand Pacific Petrochemical Corporation
Formosa Plastic Corporation
Business Outlook
– Hydrocarbon (3)
Copyright © 2016 CTCI All Rights Reserved.
Business Outlook
– Hydrocarbon (4)
4. Demand in Southeast Asia remains strong:
With the benefit of demographic dividend in Southeast Asia, the
demand of petrochemical products remains strong, bringing in more
investments in hydrocarbon plants; CTCI is focusing on the following
projects:
PTTGC Aromatics Reconfiguration Project – Thailand
IRPC Maximum Aromatics (MARS) Project – Thailand
IOCL Gujarat Refinery Expansion Project – India
MCPI Mundra PTA Project – India
CCET Carbon Black Plant Project – India (Awarded)
14
Copyright © 2016 CTCI All Rights Reserved.
Liquefied Natural Gas (LNG)
1. LNG Receiving Terminal:
Building gas-fired power plants is one of the government’s energy policies, and
below are some related projects:
TPC Taichung LNG Receiving Terminal Regas Project
CPC Third LNG Receiving Terminal Regas Project
CPC Taichung LNG Plant Phase 2 and 3 Expansion Project
CPC Yung-An LNG Plant Regas Project
2. LNG Export Facility:
As governments all over the world are promoting environmental and energy
policies, EPC companies which have been dominating LNG Export Terminal
market are having full backlog of contracts, therefore creating an opportunity for
CTCI to enter the market through bidding for the below project:
QatarGas North Field Expansion EPC Project
Business Outlook
– Hydrocarbon (5)
15
Copyright © 2016 CTCI All Rights Reserved.16
1. Combined Cycle Power Plant EPC Project:
According to Taipower's long-term power
development plan, the following power plant projects will be executed:
Datan 400MW Project – Taoyuan
Hsin Ta & Taichung 6500MW Project – Kaohsiung & Taichung
Hsieh Ho 2600MW – Keelung
Tung Hsiao 3000MW – Miaoli
Combined Cycle Power Plant opportunities in overseas market include:
Malaysia
Thailand
The Philippines
Vietnam
Business Outlook – Power(1)
Copyright © 2016 CTCI All Rights Reserved.17
2. Taiwan Offshore Wind Power:
Business opportunities for Transition Piece and
Pin Pile Fabrication Work is estimated at NT$ 10 billion,
including:
WPD – YunLin Offshore Wind Farm (Awarded)
WPD – GuanYin Offshore Wind Farm
Orsted – Great ChangHua Offshore Wind Farm
CIP – Changfang and Xidao Offshore Wind Farm
CSC – Zhong Neng Offshore Wind Farm
NPI + Yushan – Hai-Long No.2 Offshore Wind Farm
Wind power consulting and PMC work:
TPC – Phase II Wind Farm Project
Business Outlook – Power(2)
Copyright © 2016 CTCI All Rights Reserved.18
1. Transportation:
According to Forward-looking Infrastructure
Development Program, several mass rapid
transportation lines are planned:
Taipei Wanda Line Phase II
Taipei Circular Line Phase II
2. General Industry:
The Client intends to build non-ferrous
refinery plants in Indonesia in view of the
raising demand for industry raw materials:
Indonesia non-ferrous mill plants (two
projects)
Business Outlook – Infrastructure
Copyright © 2016 CTCI All Rights Reserved.
Business Outlook
– Environmental Related (1)
1. Waste-to-Energy (WtE) Business:
Domestic: Since the existing plants are going
to be decommissioned, the government plans
to launch a series of new/revamping projects in the near future, including:
Nantou Green Energy Center
Changhua Coastal Industrial Park Sludge Incineration Project
STSP Incineration Expansion Project
Tainan Chengxi Phase 2 Expansion Project
Overseas: In order to dispose urban trash and use it effectively, waste to
energy plants gradually become the major waste management solution in
Southeast Asia. CTCI is approaching the following potential projects:
Malaysia 1,000 TPD WtE Project
Indonesia 2,000 TPD WtE Project
Philippines 2,080 TPD WtE Project19
Copyright © 2016 CTCI All Rights Reserved.20
2. Air Pollution Control:
In order to improve air quality, the air pollution
control system shall be effectively upgraded and
improved. CTCI will focus on the following projects:
Taiwan IPP coal-fired power plant
Taipower coal-fired power plant
3. Wastewater Reclamation:
To respond to the government’s circular economy
policy, wastewater reclamation has become the key
for turning waste to energy; CTCI will approach the
following projects:
Taiwan STSP Wastewater Reclamation Project
Taiwan Taoyuan Northern Wastewater Reclamation Project
Business Outlook – Environmental Related (2)
Copyright © 2016 CTCI All Rights Reserved.
Domestic Investment for Environmental Projects
21
Taoyuan Chung Li Sewerage
System BOT Project(19 years for construction,
246 km of sewage pipeline,
200,000 households having pipe connection)
Kaohsiung Feng Shan Shi Wastewater
Reclamation BTO Project(the first waste water treatment plant BTO
Project in Taiwan)
Kaohsiung Linhai Wastewater
Reclamation BTO Project(Waste Water Treatment Plant &
Waste Water Reclamation Unit)
Taoyuan Biomass Energy Center BOT Project (The first biomass energy center BOT project in Taiwan)
Copyright © 2016 CTCI All Rights Reserved.22
Potential Bidding Project Amount in 2020: NT$426 billion
By Region
Potential Bidding Opportunities
Middle East33%
Taiwan 32%
Southeast Asia 19%
United States14%
India 2%
Hydrocarbon70%
Power 15%
Transportation7%
Environmental6%
General Industry 2%
By Business Area
Financial Highlights
23
Copyright © 2016 CTCI All Rights Reserved.
Consolidated Sales Revenues and Breakdown
24
67.170.51 71.6
64.1
37.7
0
10
20
30
40
50
60
70
80
2015 2016 2017 2018 2019-Aug
Unit: NT$, Billion
Southeast Asia 36%
Taiwan 33%
China 10%
Middle East9%
US 9%
India 3%
Hydrocarbon43%
Power 22%
Environmental14%
General Industry10%
Transportation7%
Others 4%
Copyright © 2016 CTCI All Rights Reserved.
1st Half of 2019 Consolidated Income Statement
Unit: NT$, Thousand
2019/06/30 2018/06/30 YOY
Sales Revenues 27,093,923 100% 27,896,747 100% -2.9%
Operating costs (25,261,270) -93.2% (25,892,560) -92.8% -2.4%
Gross Profit 1,832,653 6.8% 2,004,187 7.2% -8.6%
Operating expenses (860,540) -3.2% (903,974) -3.2% -4.8%
Operating income 972,113 3.6% 1,100,213 3.9% -11.6%
Total non-operating income
and expenses11,378 0.0% 193,963 0.7% -94.1%
Profit before income tax 983,491 3.6% 1,294,176 4.6% -24.0%
Income tax expense (239,121) -0.9% (311,733) -1.1% -23.3%
Profit for the period 744,370 2.7% 982,443 3.5% -24.2%
Profit attributable to Owners
of the parent493,537 1.8% 727,722 2.6% -32.2%
Total basic earnings per share 0.65 0.95
25
Copyright © 2016 CTCI All Rights Reserved.
1st Half of 2019 Consolidated Balance SheetUnit: NT$, Thousand
2019/06/30 2018/06/30
Current assets* 48,127,890 70% 48,074,239 76%
Non-current assets 20,355,456 30% 14,869,370 24%
Total assets 68,483,346 100% 62,943,609 100%
Current liabilities 43,114,474 63% 38,896,624 62%
Non-current liabilities 6,105,278 9% 4,683,320 7%
Total Liabilities 49,219,752 72% 43,579,944 69%
Equity attributable to owners of
the parent16,357,527 24% 16,434,513 26%
Non-controlling interest 2,906,067 4% 2,929,152 5%
Total equity 19,263,594 28% 19,363,665 31%
Total liabilities and equity 68,483,346 100% 62,943,609 100%
*Cash and cash equivalents: NT$ 17 billion
26
Copyright © 2016 CTCI All Rights Reserved.
Dividend Payout
27
2.65 2.91
3.22 3.32
2.22
2.51 2.69
2.92
3.68
2.40 2.37 2.42
2.76 2.84
1.99 2.23
2.40 2.60
3.23
2.26
89%
83%86% 85%
90% 89% 89% 89% 88%
94%
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
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EPS Cash DPS Cash Dividend Payout Ratio(%)Unit: NT$
Copyright © 2016 CTCI All Rights Reserved.28