1. 二○一九年五月二十一日
Formosa Plastics Corporation 台灣塑膠工業股份有限公司 2018 Q1 Operation Performance Highlights
March 31, 2018

2. Agenda Business Review Financial Highlights Appendices 二○一九年五月二十一日

3. 二○一九年五月二十一日
Business Review
二○一九年五月二十一日

4. Revenue Breakdown by Product (IFRSs consolidated)
二○一九年五月二十一日
Revenue Breakdown by Product (IFRSs consolidated)
2017 Q1 Net Sales:
NT$47.8 billion
2018 Q1 Net Sales:
NT$54.2 billion
PVC accounted for 20% and 24% of revenue in 2018 Q1 and 2017 Q1 respectively
PE (HDPE/EVA/LLDPE) accounted for 17% and 18% of revenue in 2018 Q1 and 2017 Q1 respectively
Specialty Chemicals (AN/MMA/ECH/MTBE) accounted for 13% and 10% of revenue in 2018 Q1 and 2017 Q1 respectively
Revenue in 2018 Q1 rose 13.3% from 2017 Q1, mainly due to increasing ASP of Caustic Soda, AN and ECH, and increasing sales volume of PE, PP and SAP.

5. 二○一九年五月二十一日
Operating Profits Breakdown by Product Specialty Chemicals & PVC are the key profit contributors in 2018 Q1
Operating Profits
Operating Margins % %
Note : Specialty Chemicals include AN, MTBE, MMA and ECH

6. Key Product Highlights Market Dynamics for PVC
二○一九年五月二十一日
Key Product Highlights Market Dynamics for PVC
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue stood at NT$11.4bn in 2017 Q2 following sales volume increases but ASP decreases
Sales volume rose 8.8% to 418KMT in 2017 Q2 from 2017 Q1 due to demand increase from India and China
ASP fell 8.1% in 2017 Q2 from 2017 Q1 due to (1)more PVC output given higher Caustic Soda and its by-product chlorine utilization rate in China; (2)bearish ethylene price

7. Key Product Highlights Market Dynamics for PVC
二○一九年五月二十一日
Key Product Highlights Market Dynamics for PVC
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 92.6% and 92.8% in 2017 Q2 and 2017 Q1 respectively
Production volume decreases 0.2% to 402KMT in 2017 Q2 from 403KMT in 2017 Q1
二○一九年五月二十一日

8. Key Product Highlights Market Dynamics for PVC
二○一九年五月二十一日
Key Product Highlights Market Dynamics for PVC
Gross Margin
Operating Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 due to lower ASP

9. Key Product Highlights #1 PVC Producer in Taiwan
二○一九年五月二十一日
Key Product Highlights #1 PVC Producer in Taiwan
2018 Q1 Total Taiwan PVC Demand:
135,000 MT
2018 Q1 External Sales of PVC:
NT$ 10,738 million
PVC annual production capacity is 1,735KMT with sales volume of 418KMT in 2017 Q2
Total demand in Taiwan for 2017 Q2 was 3.2% lower than 2017 Q1
FPC commands a 66% market share in Taiwan in 2017 Q2
Taiwan sales accounted for 21% of total sales in 2017 Q2, 37% and 24% of sales sold to Mainland China and South Asia (India most) respectively

10. Key Product Highlights Market Dynamics for Caustic Soda
二○一九年五月二十一日
Key Product Highlights Market Dynamics for Caustic Soda
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue rose 8.9% to NT$4.9 bn in 2017 Q2 from 2017 Q1 following sales volume and ASP increase
Sales volume rose 3.4% to 346KMT in 2017 Q2 from 2017 Q1 due to demand increase from global aluminum industry
ASP rose 5.3% in 2017 Q2 from 2017 Q1 due to (1)supply side reform and increasing usage from environmental treatment in China; (2)demand increase from global aluminum industry

11. Key Product Highlights Market Dynamics for Caustic Soda
二○一九年五月二十一日
Key Product Highlights Market Dynamics for Caustic Soda
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 94.5% and 93.3% in 2017 Q2 and 2017 Q1 respectively
Production volume increases 1.3% to 402KMT in 2017 Q2 from 397KMT in 2017 Q1
二○一九年五月二十一日

12. Key Product Highlights Market Dynamics for Caustic Soda
二○一九年五月二十一日
Key Product Highlights Market Dynamics for Caustic Soda
Gross Margin
Operating Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 due to higher electricity cost in summer time from June

13. Key Product Highlights #1 Caustic Soda Producer in Asia
二○一九年五月二十一日
Key Product Highlights #1 Caustic Soda Producer in Asia
2018 Q1 Total Taiwan Caustic Soda Demand: 324,000 MT
2018 Q1 External Sales of Caustic Soda:
NT$ 6,350 million
Caustic Soda annual production capacity is 1,700KMT, the largest in Asia, with sales volume of 346KMT in 2017 Q2
About 20.3% of production was for internal consumption
Total demand in Taiwan for 2017 Q2 was 23.5% higher than 2017 Q1
FPC commands a 72% market share in Taiwan in 2017 Q2
Taiwan sales accounted for 51% of total sales in 2017 Q2, 26% and 22% of sales sold to Australia and USA respectively
二○一九年五月二十一日

14. Key Product Highlights Market Dynamics for HDPE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for HDPE
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue rose 30.5% to NT$5.2 bn in 2017 Q2 from 2017 Q1 following sales volume increases
Sales volume rose 39.8% in 2017 Q2 from 2017 Q1 due to Linyuan HDPE plant shutdown for maintenance during 3/3~3/21
ASP fell 6.7% in 2017 Q2 from 2017 Q1 due to bearish ethylene price

15. Key Product Highlights Market Dynamics for HDPE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for HDPE
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 89.7% and 78.4% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 14.4% to 127KMT in 2017 Q2 from 2017 Q1 due to Linyuan HDPE plant shutdown for maintenance during 3/3~3/21

16. Key Product Highlights Market Dynamics for HDPE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for HDPE
Gross Margin
Operating Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 given lower ASP
二○一九年五月二十一日

17. Key Product Highlights #1 Producer of HDPE in Taiwan
二○一九年五月二十一日
Key Product Highlights #1 Producer of HDPE in Taiwan
2018 Q1 Total Taiwan HDPE Demand:
83,000 MT
2018 Q1 External Sales of HDPE:
NT$ 4,293 million
HDPE annual production capacity is 566KMT with sales volume of 141KMT in 2017 Q2
FPC commands a 56% market share in Taiwan in 2017 Q2
Total demand in Taiwan for 2017 Q2 was 2.3% higher than 2017 Q1
Taiwan sales accounted for 37% of total sales in 2017 Q2, with 41% of sales sold to Mainland China
二○一九年五月二十一日

18. Key Product Highlights Market Dynamics for EVA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for EVA
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue rose 22.2% to NT$2.7 bn in 2017 Q2 from 2017 Q1 following sales volume increases
Sales volume rose 33.0% to 60KMT in 2017 Q2 from 2017 Q1 due to Mailiao EVA plant shutdown for maintenance during 2/8~3/15
ASP fell 8.2% in 2017 Q2 from 2017 Q1 due to 300KMT new capacity from Jiangsu Sailboat Petrochemical in China and bearish ethylene price

19. Key Product Highlights Market Dynamics for EVA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for EVA
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 85.2% and 63.7% in 2017 Q2 and 2017 Q1 respectively
EVA production volume rose 33.9% to 66KMT in 2017 Q2 from 2017 Q1 due to Mailiao EVA plant shutdown for maintenance during 2/8~3/15

20. Key Product Highlights Market Dynamics for EVA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for EVA
Gross Margin
Operating Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 given lower ASP
二○一九年五月二十一日

21. Key Product Highlights #1 Producer of EVA in Taiwan
二○一九年五月二十一日
Key Product Highlights #1 Producer of EVA in Taiwan
2018 Q1 Total Taiwan EVA Demand:
11,000 MT
2018 Q1 External Sales of EVA:
NT$ 2,986 million
EVA annual production capacity is 312KMT after the completion of new capacity in Ningbo (72KMT/Y) in 2016 Q2, with sales volume of 60KMT in 2017 Q2
FPC commands a 24% market share in Taiwan in 2017 Q2
Total demand in Taiwan for 2017 Q2 was equal to 2017 Q1
Taiwan sales accounted for 5% of total sales in 2017 Q2, with 63% of sales sold to Mainland China and 21% to SE Asia

22. Key Product Highlights Market Dynamics for LLDPE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for LLDPE
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue fell 6.3% to NT$2.1 bn in 2017 Q2 from 2017 Q1 following ASP and sales volume decrease
Sales volume fell 1.4% to 56KMT in 2017 Q2 from 2017 Q1
ASP fell 5.0% in 2017 Q2 from 2017 Q1 due to bearish ethylene price

23. Key Product Highlights Market Dynamics for LLDPE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for LLDPE
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 89.5% and 89.2% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 0.3% to 59KMT in 2017 Q2 from 2017 Q1

24. Key Product Highlights Market Dynamics for LLDPE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for LLDPE
Gross Margin
Operating Margin
Operating margin slightly fell in 2017 Q2 from 2017 Q1 given lower ASP and higher SG&A
二○一九年五月二十一日

25. Key Product Highlights #1 Producer of LLDPE in Taiwan
二○一九年五月二十一日
Key Product Highlights #1 Producer of LLDPE in Taiwan
2018 Q1 Total Taiwan LLDPE Demand:
55,000 MT
2018 Q1 External Sales of LLDPE:
NT$ 1,790 million
LLDPE annual production capacity is 264KMT with sales volume of 56KMT in 2017 Q2
FPC commands a 42% market share in Taiwan in 2017 Q2
Total demand in Taiwan for 2017 Q2 was 15.1% higher than Q1
Taiwan sales accounted for 47% of total sales in 2017 Q2, with 9%, 21% and 15% of sales sold to Mainland China, SE Asia and South Asia (India most) respectively

26. Key Product Highlights Market Dynamics for Acrylic Acid & Esters
二○一九年五月二十一日
Key Product Highlights Market Dynamics for Acrylic Acid & Esters
Net Sales
External Sales Vol. & Selling Price
Volume
(1000MT)
Avg. Price
(NT$/MT)
Sales
(NT$Million)
Revenue fell 14.5% to NT$3.4 bn in 2017 Q2 from 2017 Q1 following ASP decreases
Sales volume rose 3.1% to 98KMT in 2017 Q2 from 2017 Q1 due to re-stocking demand in China market
ASP fell 17.1% in 2017 Q2 from 2017 Q1 due to sufficient supply in China and bearish propylene price

27. Key Product Highlights Market Dynamics for Acrylic Acid & Esters
二○一九年五月二十一日
Key Product Highlights Market Dynamics for Acrylic Acid & Esters
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 78.2% and 72.9% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 7.2% to 131KMT in 2017 Q2 from 2017 Q1
二○一九年五月二十一日

28. Key Product Highlights Market Dynamics for Acrylic Acid & Esters
二○一九年五月二十一日
Key Product Highlights Market Dynamics for Acrylic Acid & Esters
Gross Margin
Operating Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 due to lower ASP

29. 二○一九年五月二十一日
Key Product Highlights Sole Producer of Acrylic Acid & Esters in Taiwan
2018 Q1 Total Taiwan Acrylic Acid &
Esters Demand: 58,000 MT
2018 Q1 External Sales of Acrylic Acid &
Esters: NT$ 3,988 million
FPC is the sole producer of Acrylic Acid & Esters in Taiwan, with annual production capacity of 668KMT (Taiwan 268KMT/Y, Ningbo 400KMT/Y)
AE sales volume reached 98KMT in 2017 Q2 and commands a 71% market share in Taiwan
12.7% of the production is consumed internally in 2017 Q2
Total demand in Taiwan for 2017 Q2 was 9.8% higher than 2017 Q1
Taiwan sales accounted for 33% of total sales in 2017 Q2, with 52% and 7% of sales sold to Mainland China and South Asia respectively
二○一九年五月二十一日

30. Key Product Highlights Market Dynamics for SAP
二○一九年五月二十一日
Key Product Highlights Market Dynamics for SAP
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue rose 36.1% to NT$1.2 bn in 2017 Q2 from 2017 Q1 following sales volume increases
Sales volume rose 36.2% to 35KMT in 2017 Q2 from 2017 Q1 due to new order from international diaper producers in Turkey
ASP fell 0.1% in 2017 Q2 from 2017 Q1

31. Key Product Highlights Market Dynamics for SAP
二○一九年五月二十一日
Key Product Highlights Market Dynamics for SAP
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 70.3% and 50.3% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 39.9% to 35KMT in 2017 Q2 from 2017 Q1 due to demand from Turkey market

32. Key Product Highlights Market Dynamics for SAP
二○一九年五月二十一日
Key Product Highlights Market Dynamics for SAP
Gross Margin
Operating Margin
Gross and operating margin rose in 2017 Q2 from 2017 Q1 due to higher utilization rate
二○一九年五月二十一日

33. Key Product Highlights Sole Producer of SAP in Taiwan
二○一九年五月二十一日
Key Product Highlights Sole Producer of SAP in Taiwan
2018 Q1 Total Taiwan SAP Demand:
2,000 MT
2018 Q1 External Sales of SAP: NT$ 1,590 million
Annual production capacity is 200KMT (Taiwan 110KMT/Y； Ningbo 90KMT/Y)
SAP sales volume reached 35KMT in 2017 Q2 and commands a 56% market share in Taiwan
Total demand in Taiwan for 2017 Q2 was equal to 2017 Q1
Taiwan sales accounted for 3% of total sales in 2017 Q2, with 19% of sales sold to Mainland China and 44% to Europe (Turkey most)
二○一九年五月二十一日

34. Key Product Highlights Market Dynamics for NBA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for NBA
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/KG)
Revenue rose 87.5% to NT$684 mn in 2017 Q2 from 2017 Q1 due to sales volume increases
Sales volume rose 105.6% to 30KMT in 2017 Q2 from 2017 Q1 due to order from South America market
ASP fell 8.8% in 2017 Q2 from 2017 Q1 due to sufficient supply in China and lower propylene price

35. Key Product Highlights Market Dynamics for NBA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for NBA
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 85.7% and 101.2% in 2017 Q2 and 2017 Q1 respectively
Production volume fell 15.3% to 54KMT in 2017 Q2 from 2017 Q1 due to cut production to meet demand and unplanned shutdown during 6/19~6/21

36. Key Product Highlights Market Dynamics for NBA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for NBA
Gross Margin
Operating Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 given lower ASP and utilization rate
二○一九年五月二十一日

37. Key Product Highlights Sole Producer of NBA in Taiwan
二○一九年五月二十一日
Key Product Highlights Sole Producer of NBA in Taiwan
2018 Q1 Total Taiwan NBA Demand:
26,000 MT
2018 Q1 External Sales of NBA: NT$ 692 million
Production capacity is 250KMT after the completion of production in Q4, the sole producer in Taiwan
NBA sales volume reached 30KMT in 2017 Q2 and commands a 86% market share in Taiwan
28.1% of the production is consumed internally in 2017 Q2
Total demand in Taiwan for 2017 Q2 was 5.3% higher than 2017 Q1
Taiwan sales accounted for 9% of total sales in 2017 Q2, with 75% of sales sold to Mainland China
二○一九年五月二十一日

38. Key Product Highlights Market Dynamics for AN
二○一九年五月二十一日
Key Product Highlights Market Dynamics for AN
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue rose 45.8% to NT$3.2 bn in 2017 Q2 from 2017 Q1 given ASP and sales volume increase
Sales volume rose 31.3% to 69KMT in 2017 Q2 from 2017 Q1 due to planned shutdown for maintenance during 2/10~3/7
ASP rose 11.0% in 2017 Q2 from 2017 Q1 due to tight supply given peers’ maintenance shutdown

39. Key Product Highlights Market Dynamics for AN
二○一九年五月二十一日
Key Product Highlights Market Dynamics for AN
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 97.5% and 82.7% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 17.9% to 68KMT in 2017 Q2 from 2017 Q1 due to planned shutdown for maintenance during 2/10~3/7
二○一九年五月二十一日

40. Key Product Highlights Market Dynamics for AN
二○一九年五月二十一日
Key Product Highlights Market Dynamics for AN
Gross Margin
Operating Margin
Gross and operating margin rose in 2017 Q2 from 2017 Q1 given higher ASP and utilization rate
二○一九年五月二十一日

41. Key Product Highlights #1 Producer of AN in Taiwan
二○一九年五月二十一日
Key Product Highlights #1 Producer of AN in Taiwan
2018 Q1 Total Taiwan AN Demand:
101,000 MT
2018 Q1 External Sales of AN:
NT$ 2,980 million
AN sales volume reached 69KMT in 2017 Q2 and commands a 39% market share in Taiwan
3.8% of the production in 2017 Q2 is consumed internally
Total demand in Taiwan for 2017 Q2 was 6.9% lower than 2017 Q1
Taiwan sales accounted for 49% of total sales in 2017 Q2, with 19%, 11% and 7% sales sold to Mainland China, NE Asia and South Asia respectively
二○一九年五月二十一日

42. Key Product Highlights Market Dynamics for MTBE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for MTBE
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue fell 2.5% to NT$913 mn in 2017 Q2 from 2017 Q1 given ASP decreases
Sales volume rose 8.5% to 49KMT in 2017 Q2 from 2017 Q1 due to on-seasonal demand
ASP fell 10.1% in 2017 Q2 from 2017 Q1 due to bearish crude oil price

43. Key Product Highlights Market Dynamics for MTBE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for MTBE
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 116.4% and 113.4% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 2.6% to 51KMT in 2017 Q2 from 2017 Q1
二○一九年五月二十一日

44. Key Product Highlights Market Dynamics for MTBE
二○一九年五月二十一日
Key Product Highlights Market Dynamics for MTBE
Gross Margin
Operating Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 due to lower ASP
二○一九年五月二十一日

45. Key Product Highlights #3 Producer of MTBE in Taiwan
二○一九年五月二十一日
Key Product Highlights #3 Producer of MTBE in Taiwan
2018 Q1 Total Taiwan MTBE Demand:
158,000 MT
2018 Q1 External Sales of MTBE: NT$ 944 million
Annual production capacity of MTBE is 174KMT after the completion of debottlenecking 23KMT in 2005 Q2
MTBE sales volume reached 49KMT in 2017 Q2 and commands a 30% market share in Taiwan
Total demand in Taiwan for 2017 Q1 was 3.9% higher than 2017 Q1
Fully supplied to affiliate Formosa Petrochemical as gasoline additives in 2017 Q2
二○一九年五月二十一日

46. Key Product Highlights Market Dynamics for MMA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for MMA
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue rose 31.0% to NT$1.25 bn in 2017 Q2 from 2017 Q1 given ASP and sales volume increase
Sales volume rose 19.0% to 19KMT in 2017 Q2 from 2017 Q1 due to planned shutdown for maintenance during 2/10~3/7
ASP rose 10.1% in 2017 Q2 from 2017 Q1 due to tight supply given peers’ maintenance or outage
二○一九年五月二十一日

47. Key Product Highlights Market Dynamics for MMA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for MMA
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 95.4% and 74.4% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 28.1% to 21KMT in 2017 Q2 from 2017 Q1 due to planned shutdown for maintenance during 2/10~3/7
二○一九年五月二十一日

48. Key Product Highlights Market Dynamics for MMA
二○一九年五月二十一日
Key Product Highlights Market Dynamics for MMA
Gross Margin
Operating Margin
Gross and operating margin rose in 2017 Q2 from 2017 Q1 due to higher ASP and utilization rate

49. Key Product Highlights #2 Producer of MMA in Taiwan
二○一九年五月二十一日
Key Product Highlights #2 Producer of MMA in Taiwan
2018 Q1 Total Taiwan MMA Demand:
43,000 MT
2018 Q1 External Sales of MMA: NT$ 1,177 million
Annual production capacity of MMA is 98KMT after the completion of debottlenecking in 2006 Q2
MMA sales volume reached 19KMT in 2017 Q2 and commands a 28% market share in Taiwan
8.7% of the production in 2017 Q2 is consumed internally
Total demand in Taiwan for 2017 Q2 was 2.1% lower than 2017 Q1
Taiwan sales accounted for 58% of total sales in 2017 Q2, with 15% of sales sold to Mainland China and 13% to SE Asia

50. Key Product Highlights Market Dynamics for ECH
二○一九年五月二十一日
Key Product Highlights Market Dynamics for ECH
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue rose 14.2% to NT$845 mn in 2017 Q2 from 2017 Q1 given sales volume increases
Sales volume rose 14.4% to 25KMT in 2017 Q2 from 2017 Q1 due to Epoxy demand from Nan Ya Plastics
ASP fell 0.2% in 2017 Q2 from 2017 Q1
二○一九年五月二十一日

51. Key Product Highlights Market Dynamics for ECH
二○一九年五月二十一日
Key Product Highlights Market Dynamics for ECH
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 98.0% and 87.0% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 12.7% to 24KMT in 2017 Q2 from 2017 Q1 due to demand recovery
二○一九年五月二十一日

52. Key Product Highlights Market Dynamics for ECH
二○一九年五月二十一日
Key Product Highlights Market Dynamics for ECH
Gross Margin
Operating Margin
Operating margin rose in 2017 Q2 from 2017 Q1 due to higher utilization rate
二○一九年五月二十一日

53. Key Product Highlights #1 Producer of ECH in Asia
二○一九年五月二十一日
Key Product Highlights #1 Producer of ECH in Asia
2018 Q1 Total Taiwan ECH Demand:
35,000 MT
2018 Q1 External Sales of ECH: NT$ 1,379 million
ECH sales volume reached 25KMT in 2017 Q2 and commands a 73% market share in Taiwan
Total demand in Taiwan for 2017 Q2 was 29.2% higher than Q1
Taiwan sales accounted for 86% of total sales in 2017 Q2, almost supplied to Affiliate Nan Ya Plastics for Epoxy production, with 13% of sales sold to Mainland China, 1% to South Asia

54. Key Product Highlights Market Dynamics for PP
二○一九年五月二十一日
Key Product Highlights Market Dynamics for PP
Net Sales
External Sales Vol. & Selling Price
Sales
(NT$Million)
Volume
(1000MT)
Avg. Price
(NT$/MT)
Revenue rose 12.8% to NT$8.4 bn in 2017 Q2 from 2017 Q1 due to sales volume increases
Sales volume rose 24.3% to 246KMT in 2017 Q2 from 2017 Q1 due to unplanned shutdown in Linyuan PP2 during 2/7~2/15 and 2/17~3/5
ASP fell 9.2% in 2017 Q2 from 2017 Q1 due to bearish propylene price
二○一九年五月二十一日

55. Key Product Highlights Market Dynamics for PP
二○一九年五月二十一日
Key Product Highlights Market Dynamics for PP
Production Volume
Utilization Rate
Volume
(1000MT)
Utilization rate was 104.0% and 97.1% in 2017 Q2 and 2017 Q1 respectively
Production volume rose 7.1% to 235KMT in 2017 Q2 from 2017 Q1 due to unplanned shutdown in Linyuan PP2 during 2/7~2/15 and 2/17~3/5

56. Key Product Highlights Market Dynamics for PP
二○一九年五月二十一日
Key Product Highlights Market Dynamics for PP
Gross Margin
Operating Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 due to lower ASP
二○一九年五月二十一日

57. Key Product Highlights #2 Producer of PP in Taiwan
二○一九年五月二十一日
Key Product Highlights #2 Producer of PP in Taiwan
2018 Q1 Total Taiwan PP Demand:
142,000 MT
2018 Q1 External Sales of PP: NT$ 8,748 million
Annual production capacity of PP is 884KMT (Taiwan 434KMT/Y, Ningbo 450KMT/Y) with sales volume of 246KMT in 2017 Q2
FPC commands a 29% market share in Taiwan
Total demand in Taiwan for in 2017 Q2 was 8.8% lower than Q1
Taiwan sales accounted for 20% of total sales in 2017 Q2, with 66% of sales sold to Mainland China and 6% to South Asia
二○一九年五月二十一日

58. 二○一九年五月二十一日
Major Affiliates – (1) Formosa Petrochemical Corporation (FPCC;28.56% stake)
Unit: NT$ mn
Net Sales
Pre-tax Profit
二○一九年五月二十一日

59. Major Affiliates – (2) Mailiao Power Corporation (24.94% stake)
二○一九年五月二十一日
Major Affiliates – (2) Mailiao Power Corporation (24.94% stake)
Unit: NT$ mn
Net Sales
Pre-tax Profit

60. Major Affiliates – (3) FPC USA (22.61% stake)
二○一九年五月二十一日
Major Affiliates – (3) FPC USA (22.61% stake)
Unit: US$ mn
Net Sales
Pre-tax Profit
Note: FPC owns FPC-USA’s stake from 6.04% to 22.61% since 2006 Jan given the exchange of FPC-A’s stake owned by FPC to FPC-USA.

61. Capacity Expansion Plan
二○一九年五月二十一日
Capacity Expansion Plan
1. Ningbo , China (Total investment US$ 8.11 mn)
Main Products
Current
Capacity (p.a.)
Expansion
(MT/p.a.)
Completion
Date
Capacity
Increase (%) PP
Propylene
450KMT -
72KMT
600KMT
2019Q1
2021Q2
16.00
100.00
2. Texas, USA (Total investment US$ 540 mn)
Main Products
Current
Capacity (p.a.)
Expansion
(MT/p.a.)
Completion
Date
Capacity
Increase (%)
HDPE -
400KMT
2018Q4 -
二○一九年五月二十一日

62. 二○一九年五月二十一日
Capital Expenditure
NT$million
Note：Not including long-term investment. If including long-term investment, CapEx in 2017Q1 918 mn, 2017Q2 1.5 bn, 2017Q3 2.1 bn, 2017Q4 2.2 bn Q1 2.1 bn
二○一九年五月二十一日

63. 二○一九年五月二十一日
Financial Highlights

64. Consolidated Revenue (IFRSs)
二○一九年五月二十一日
Consolidated Revenue (IFRSs)
NT$ million
Revenue rose 2.1% in 2018 Q1 from 2017 Q4 mainly due to higher ASP of Caustic Soda, PP and ECH
二○一九年五月二十一日

65. 二○一九年五月二十一日
EBITDA
NT$million
* EBITDA = Pre-tax income + Interest + Depreciation + Amortization

66. 二○一九年五月二十一日
Pre-tax Income
NT$million
Pre-tax income fell 5.2% in 2018 Q1 from 2017 Q4 mainly due to (1) lower investment income from FPCC and FPC-USA (2) disposal gain of Nanya Tech in 2017 Q4
二○一九年五月二十一日

67. 二○一九年五月二十一日
Margins
Gross Margin
Operating Margin
Pre-tax Margin
Gross and operating margin fell in 2017 Q2 from 2017 Q1 mainly due to higher revenue given sales volume increase
Pre-tax margin fell slightly in 2017 Q2 from 2017 Q1 mainly due to less investment income
二○一九年五月二十一日

68. Capital Structure Net Debt/ Equity*
二○一九年五月二十一日
Capital Structure Net Debt/ Equity*
Debt/equity ratio decreased in 2017 Q2 due to decreasing of short-term debt
*Note: Net Debt/Equity=(Liability bearing interest – Cash and Cash equivalents – Marketable Securities – Loan to Affiliates)/equity
二○一九年五月二十一日

69. Returns On Shareholder Equity*
二○一九年五月二十一日
Returns On Shareholder Equity*
The R.O.E. rose to 3.3% in 2017 Q2 mainly due to lower equity given higher cash dividend announced
*Note：R.O.E.=After-tax income  average equity

70. 二○一九年五月二十一日
Interest Coverage*
Interest coverage rose to 30.8x in 2017 Q2 from 28.2x in 2017 Q1, mainly due to the increase of pre-tax income given FX gain and the decrease interest expense
* Note: [Income before interest and tax]  interest