D ifferentiation · I nnovation · G reen LCY(1704) Investor Conference Date : Dec. 20, 2018
D i f f e r e n t i a t i o n · I n n o v a t i o n · G r e e n
LCY(1704)Investor Conference
Date : Dec. 20, 2018
Copyright © 2016 LCY GROUP. All Right Reserved.
Disclaimer
The information in this presentation has been prepared by LCY Chemical Corp. (the
“Company”) solely for information purposes in connection with the Company's Investor
Conference Dated Dec. 20, 2018. The information presented or contained in this presentation
may be subject to change without notice.
This presentation contains forward-looking statements. Such statements are based upon
management's current expectations and current market and operating conditions, and relate to
events that involve known or unknown risks, uncertainties and other factors, all of which are
difficult to predict and many of which are beyond the Company's control, which may cause the
Company's actual results, performance or achievements to differ materially from those in the
forward-looking statements. The Company does not undertake any obligation to update any
forward-looking statement as a result of new information, future events or otherwise.
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AGENDA
1. Financial Information
2. Q & A
3. Backup Slide-
LCY Company Introduction
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D i f f e r e n t i a t i o n · I n n o v a t i o n · G r e e n
Financial Information
4
Copyright © 2016 LCY GROUP. All Right Reserved.
Consolidated Operating performance from January to September, 2018
1. Consolidated revenue from Jan. to Sep. increased by 12% YoY.
2. Due to affect by raw material prices fluctuation, the profit before income tax of NT3.27bn, was
2% lower than 2017.
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YoY
2018/1-9 2017/1-9 %Sales revenue 37,857,279 33,943,499 12%
Gross profit 5,354,066 5,220,674 3%
Profit form Operations 2,762,666 2,890,510 -4%
Non-operating Income and Expenses 516,492 432,782 19%
Profit before Income Tax 3,279,158 3,329,292 -2%
Unit: NT$ thousandFor the Nine Months Ends to September
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Consolidated Operating performance for Jan to Sep & Last 3 years overview
Notes:
Upon the loss of control of Taiwan Polysilicon Company, the Company derecognizes the assets and
liabilities of this subsidiary, and thus a resulting gain of 6.89 billion is recognized in 2015.
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Sales revenue 37,857,279 45,320,290 40,080,184 35,965,047
Gross profit 5,354,066 7,231,971 6,950,603 5,094,633
Profit form Operations 2,762,666 4,072,417 4,124,394 2,714,522
Non-operating Income and Expenses 516,492 546,351 522,231 7,540,118
Profit before Income Tax 3,279,158 4,618,768 4,646,625 10,254,640
Net Income 2,482,105 3,672,663 3,993,860 9,764,483
Basic earnings per share 2.83 4.20 4.65 11.69
2018/1-9Unit: NT$ thousand 2017 2016 2015
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Performance by products from Jan to Sep
Unit: NT$ thousand
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The main products contribution was thermoplastic elastomers , accounted for
more than 50%.
ProductsMethanol
and SolventYoY
Thermoplastic
ElastomersYoY
Performance
PlasticsYoY
Sales revenue 7,623,541 29% 16,512,959 9% 11,124,674 20%
Operating profit 356,377 20% 1,639,331 70% 547,061 -39%
Products Copper Foil YoY Others YoY
Sales revenue 2,420,133 -14% 175,972 -81%
Operating profit 253,357 -58% -42,089 -138%
D i f f e r e n t i a t i o n · I n n o v a t i o n · G r e e n
Q & A
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D i f f e r e n t i a t i o n · I n n o v a t i o n · G r e e n
Backup SildeLCY Company Introduction
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Vision and Values
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To be a world-class chemical company applying
innovative processes to deliver differentiated
products while driving sustainability
Values Integrity , Innovation, Team
Work and Accountable
Leadership
Vision
Copyright © 2016 LCY GROUP. All Right Reserved.
328476
590
1164
1376 1409
1085
1476
17551683 1676
1385
11331244
1490
1915 1965 1977 1997 1999 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Company History and Growth
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Revenue Compound Annual Growth Rate Reaches 11 %
Group Revenue(Million USD)
QAFAC began production of MeOH
& MTBE in Qatar
Acquired Polimeri EUROPA S.P.A. in Baytown, Texas, USA Acquired TPP that
produces PP and derivatives
Established TPE plant in
Huizhou, China
Started to produce
polysilicon
Became the largest TPE producer in
the world
LCY Group was founded
LCY Chemical Company was
founded
LCYCIC IPO
Established Zhenjiang LCY General Chemical Co., Ltd. and Zhenjiang LCY
Warehousing & Storage Co., Ltd.
Copyright © 2016 LCY GROUP. All Right Reserved.
Geographically Diverse
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HQ & Office
Plants
R & D Center
Baytown, USATPE
Chianjhen, Kaohsiung Storage
Linyuan, Kaohsiung E-Chemicals, Solvent
Nanzih, Kaohsiung R & D Center
LCY, KaohsiungFM, PARA,
LCYT Copper Foil
PindongSteel Drum
Zhenjiang, ChinaFM, PARA, MIBK,
E-Chemicals
QatarMethanol & MTBE
Zhenjiang, ChinaStorage
Huizhou, ChinaTPE
Hong Kong, ChinaOffice
Shanghai, ChinaOffice
Taipei, TaiwanHQ
Dashe, Kaohsiung PP, Performance Plastics, Fiber
Foamed Polypropylene
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Production lines
1
Research & Development Center
4
Offices globally
13
Plants
1850
Employeesworldwide
高雄小港熱可塑性橡膠
LCY GRIT, Kaohsiung TPE
Europe Office
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Products & Services
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Performance Plastics
MeOH/SolventsWarehousing
& Storage
Thermoplastic Elastomers
Green Energy
Copper Foil
Performance Composites
Polypropylene
TaippronPolypropylene
Staple Fiber
Solvents
E-Chemicals
Methanol &Derivatives
Thermoplastic Elastomers
Warehousing & Storage
Copper Foil
Water Solutions
Copyright © 2016 LCY GROUP. All Right Reserved.
R & D Center
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• Innovation, Green science, Differentiated product and process, Outside in focus
• Total of 140+ technical experts, expected to have 200+ scientists and engineers by end of 2016
• New R&D center located at Nanzih Export Processing Zone in Kaohsiung, and was constructed in 2017.
ApplicationDevelopment
Catalysis
ProcessEngineering
Characterization
FormulationScience
MaterialScience
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Business and Operation
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I n t e g r a t e d w i t h O w n Te r m i n a l s , S t o r a g e O p e r a t i o n
One of The
largest TPE
producer in
the world
(500 k/MT)
1st PP maker in
Taiwan, leader
in medical &
consumer
Qatar
MeOH & MTBE
producer
2nd Penta &
Para capacity
in the world
1st
Solvent
producer in
Taiwan
Broad Product Portfolio and Geographically Diverse
Copyright © 2016 LCY GROUP. All Right Reserved.Copyright © 2016 LCY GROUP. All Right Reserved.
EHS & CSR are Always our #1 Focus
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A founding member of TRCA (Taiwan Responsible Care Association)
2008 National Labor Safety and Health Outstanding Award Safety and Health Enterprise Award
ISO 9001/14001, OHSAS 18001, and TOSHMS certification for all plants
2010 Zhenjiang plant Jiangsu Province-Safe Production Integrity Enterprise
2010 Dashe plant - Energy Saving Excellence and Innovation Award
Honored with the First Award by Global Views Monthly on:「2012 CSR - Community Care」2012/Aug published 「2011 Corporate CSR White Paper」1st version
2013 Dashe plant and Linyuan plant (E-chem building) received Certificate of Green Factory
2014-07-31 Kaohsiung gas explosion
Big Challenge, yet we stand by our conviction for EHS
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Occupational Safety & Process Safety
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集團整合自有的碼頭、儲罐、船隊等營運配合作業
In line with LCY's spirit of environmental risk management, we observe domestic and international EHS related regulations, ISO 14001, OHSAS 18001, TOSHMS, NFPA, API and best practices in the industry, and vigorously embark on programs to obtain third-party certification of relevant management systems. In addition, through environmental cost accounting (ECA) and big data analysis, we perform SWOT analysis, and based on which, formulate ESH and process safety key performance indicators. Those performance indicators are used by the management in developing EHS and sustainability strategies as LCY aspires to build a world-class chemical company.
w w w. l c y g r o u p . c o m
Thanks for your attention!
D i f f e r e n t i a t i o n · I n n o v a t i o n · G r e e n
Copyright © 2016 LCY GROUP. All Right Reserved.