ctci group ctci/ investor relationship - cinda · ctci/ investor relationship •history 1959 –...

CTCI/ Investor Relationship

Our Vision

The Most Reliable Global Engineering Service Provider

CTCI GROUP


Business Operation

Financial Highlights

Company Overview

Looking Forward

2


• The Largest Engineering, Procurement and Construction (“EPC”) Company in Taiwan

-Over 50 years of industry experience (since the founder, CTCI Foundation set up in 1959)

-2015 retained 1st in the category of EPC among Top 650 Service Enterprises(Common Wealth Magazine)

• Offering Specialized Turn-key EPC Solutions

-Ability to execute EPC contracts size over USD 1 billion

-Expanded business lines from refinery, chemical and petrochemical into power, infrastructure,

environmental protection, steel & nonferrous, storage & terminal, and waste-to-energy fields

• Significant Domestic and Overseas Experiences

-Utilized the top-notch technologies transferred from abroad and has become a designated partner for many

internationally well-known companies to collaborate with

-Hundreds proven track records worldwide, including Taiwan, China, Thailand, Singapore, Malaysia, Vietnam,

Philippines, Indonesia, India, KSA, Qatar and USA

• One of Major EPC Firms in Asia

-Global presence with approximately 7,000s employees stationed in more than 40s affiliates worldwide

Introduction

3


• History

1959 – China Technical Consultants, Inc. (now renamed as CTCI Foundation) established

1979 – CTCI Corporation founded by CTCI Foundation and two financial organizations

1993 – CTCI was listed in TWSE (9933 TT)

2011 – Chiyoda invested CTCI and became the major shareholder

• Paid-in Capital ………………………………NTD 7.6 Billion (USD 229.9 Million)*

• Market Cap……………………………………NTD 27.3 Billion (USD 0.8 Billion)*

• Shareholder Structure(latest information as of 3rd August , 2015)

Company Profile

*: Base date 31st Dec. 2015

CTCI Stock Price:35.85; Outstanding Shares :760,508,848; USD:NTD=1:33.08

4

49.7% 50.3%

Local Institutional Investors &Private Investors

Foreign Institutional Investors


Feasibility

Study

& Planning

Engineering Design(E)

Procurement(P) Fabrication Construction(C) Commissioning &

Maintenance

Project Management

• Market Survey

• Enquiry and Purchasing

• Inspection and Expediting

• Shipping, Delivery and Claims

• Customs Clearance

• Insurance

• Subcontracting

• Permits and Banking Affairs

• Equipment Installation and Rigging

• Piping / Steel Structure Fabrication

& Erection

• Electrical / Instrument Installation

& Wiring

• Civil & Building

• Painting & Insulation

• Construction Management

• Process Design

• Piping Design

• Civil and Structure Design

• Instrumentation and Control Design

• Electrical Design

• Mechanical and Equipment Design

Comprehensive Services

5


• Petroleum Refining

• Petrochemical Processing

• Chemical Manufacturing

• Storage and Terminals

Hydrocarbon

• Power Plant

• Infrastructure

• Transportation

• Steel Mill

• Incineration and Energy

Recovery

• Air Pollution Control

Infrastructure,

Environment and Power

• Maintenance Strategy/

Planning/Execution

• Plant Inspection

• Maintenance

• Asset Integrity Management

Plant Maintenance

• BOT & BOO

• Incineration O&M

• Resources Collection

Recycling

• Renewable Energy

Environment and Resource

Business Areas

6


• Founded:1987

• Listed: 2002

• Paid-in Capital: NTD 235 Million(USD 7 Million)

• Market Cap: NTD1.0 Billion(USD 29 Million)

• 2014 EPS: NTD 3.30

• CTCI Holding Ratio : 50.13%

• Business area: -Main automation contractor -Manufacturing execution system -Intelligent manufacturing -Process optimization -Facility reliability

Listed subsidiaries

• Founded:1999

• Listed: 2010

• Paid-in Capital: NTD 658 Million(USD20 Million)

• Market Cap: NTD 10.6 Billion(USD 319 Million)

• 2014 EPS: NTD 10.47

• CTCI Holding Ratio : 62.38%

• Business area: -Incinerators O&M (8 of 24 in TW+2 in Macau) -New recycling business (Glass, Waste tire, and Food waste) -Green energy (Small solar power plant)


CTCI Stock Price:41.05;Outstanding Shares :23,495,500; USD:TWD=1:33.08


CTCI Stock Price:160.5;Outstanding Shares :65,779,115; USD:TWD=1:33.08

7


Global Network

As of Dec. 31st ,2015

Domestic

Manpower

Taiwan 5,839

Overseas

Manpower

Beijing 603

Shanghai 105

Thailand 370

Vietnam 221

India 119

Saudi

Arabia

111

Singapore 18

Malaysia 7

Sub-total 1,554

Total 7,393

8


Competitive Advantages

• Comprehensive EPC experiences

– Full knowledge of major licensors and EPC firms

– Strategic alliance successfully with selected technology providers

– Significant EPC experiences in multiple geographical regions and industrial sectors

• Cost Effective

– Local engineering workforce is highly cost-competitive compared to western and Japanese peers

– Valuable engineering design and sound project management by competent engineers and project management team

• Long-Standing Client Relationships

– Performed EPC services for numerous major domestic and international clients

– Repeat clients gain through solid track records

• Green Energy Business Competitiveness

– Incineration plant business with competitive advantages. Growing environmental business opportunities

9


Significant Track Records (1/3)

10

Client Project Location

Tai Power 900 MWx3 Power Generating Equipment for Tung Hsiao Power Plant Renewal

Taiwan

LRC2 146000 BPSD Laffan Refinery 2 Qatar

OPTC Kuan-Yin 1520 KTA lINE 3 PTA Plant Taiwan

KFPC 30 KTA HSBC Project Taiwan


Petronas 140 KBPSD RAPID Refinery RFCC Malaysia

SAMAC 250KTA MMA and 40KTA PMMA KSA

Land Transport Authority Singapore Thomson Line Track work Singapore

CPC Talin #11 DHDS Taiwan

Far Eastern FUPY 75/450KTA EO/EG China

20

13

2

01

4

20

15


Orpic Liwa Plastic Industrial Complex Steam Cracker and U&O Package

Oman

FPC-USA Low density polyethylene (LDPE) USA

Nan Ya Plastics USA Ethylene glycol (EG) plant expansion USA

Toho Titanium YNP Ti-sponge EPC Saudi Arabia

Land Transport Authority Gali Batu depot trackwork Singapore



11


IBN RUSHD (Sabic Group) IR-II Expansion Saudi Arabia

Saudi Kayan (Sabic Group) Amines EPC Saudi Arabia

Kimanis Power 300MW Combined Cycle Power Plant Malaysia

Dragon Steel NO.2 Sinter Plant Election Work Taiwan

Formosa Petrochemical RDS No.2 Reconstruction Work Taiwan

China Steel Corporation Trackwork, Earthwork and Drainage Taiwan


Tai Power Lin Kou Power Plant Renewal Taiwan

Dept. of Rapid Transit Taichung MRT Green Line E&M /AFC Taiwan

Land Transport Authority Trackwork EPC Singapore

Petronet LNG Expansion India

20

10

20

11


Tai Power 800 MWX2, Power Generating Equipment for Talin Power Plant Renewal

Taiwan

QAPCO Furnaces and Ethylene Tank Qatar

USI Kaohsiung Plant 50 KTA EVA Taiwan

QAPCO Regenerative Thermal Oxidizer System Taiwan

CPC Talin #10 SRU Taiwan

20

12



12


PTTAC AN/MMA Thailand

Titan Petrochem Propylene /Butadiene Extraction Malaysia

PTTUT Central Utility NO.1 PhaseⅠ~Ⅳ/ CUP-Ⅲ Thailand

Taipei City Government Taipei MRT Xinyi-Songshan Line Core System

Taiwan

Chinese Petroleum RFCC Taiwan

Dragon Steel Sintering Taiwan

20

07

20

08


QAPCO Ethylene Package NO.2 Qatar

Thai Olefins Olefins Debottlenecking Thailand

Taipei City Government Taipei MRT Tucheng Line Power System Taiwan


Aramco/Total JERP Package Saudi Arabia

Saudi Kayan (Sabic Group) Utility Block Saudi Arabia

Petronet LNG India

Government of the Macau O &M of the Macau Refuse Incineration Plant

Macao

Chinese Petroleum No.6 Naphtha Cracker Taiwan

20

09


Business Operation


Company Overview

Looking Forward


Consolidated Sales Revenues and Breakdown

14

Unit:NT$,Billion

Taiwan 56%

Middle East 19%

Malaysia 10%

Thailand 6%

China 5% Singapore 3%

Other 1%

Power 37%

Refinery 21% Petrochemical 20%

Infrastructure 10%

Incineration 5%

Other 5% Hi-Tech 2%

56.3

60.5

52.2

57.7

67.0

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015


New Contracts and Breakdown

15

Unit:NT$,Billion

79.5

60.2

66.9

77.9

64.5

30

40

50

60

70

80

90

2011 2012 2013 2014 2015

Middle East 69%

Taiwan 18%

Malaysia 6%

China 4%

Others 3%

Petrochemical 65%

Refinery 10%

Steel and Non Ferrous Metals 6%

Infrastructure 6%

Other 7%

Hi-Tech 4%

Air Pollution Control 3%


New Project in 2015

Project Talin Plant #3 RDS & #8 SRU Project

Client CPC Corporation

Contractor CTCI Corporation

Capacity RDS 40,000 (barrels/day, BPSD)

SRU 250 (tons/day, TPD)

Service Scope EPC

Location Taiwan

Kaohsiung, Taiwan

• Rich high-pressure hydrogen engineering design and plant expansion experiences in domestic and overseas markets.

• Won several public works quality awards.

• Capacity of RDS increased from 30,000 to 40,000 BPSD.ccvc ; Capacity of SUR increased from 200 to 250 TPD.

16


New Project in 2015

Project Liwa Plastic Industrial Complex Steam Cracker

and U&O Package

Client Oman Oil Refineries and Petroleum Industries

Company (Orpic)

Contractor CTCI Corporation and CB&I

Capacity Steam Cracker 870 KTA (Kiloton Annually)

Service Scope EPC

Location Oman • The biggest and the most important package

of Liwa Plastics Industrial Complex.

• The scope of work includes EPC and commissioning for a 870 kTA ethylene production steam cracker plant , a 498 kTA selective hydrogenation plant, a 87 kTA methyl tertiary butyl ether plant , a 39 kTA butene-1 plant , and a 121 kTA Pygas plant.

16

Sohar Port, Oman


New Project in 2015

Project Low density polyethylene (LDPE) project

Client FPC-USA


Capacity 400 KTA(Kiloton Annually)

Service Scope Basic Design

Location USA

• Breakthrough in the high-pressure LDPE technology

• Successfully defeat the international peers, and enter the US market.

• Significantly beneficial for acquiring potential construction project in US market

Texas,USA

18


New Project in 2015

Project Ethylene glycol (EG) plant expansion project

Client Nan Ya Plastics USA


Capacity 830 KTA(Kiloton Annually)

Service Scope Basic Design

Location USA

• Successfully defeats the international

peers, and enters the US market

• Significantly beneficial for acquiring

potential construction project in the

US market. Texas,USA

19


Project YNP Ti-sponge EPC Project

Client Toho Titanium/Advanced Metal Industries

Cluster Joint Venture

Contractor CTCI Corporation/Chiyoda Corporation

Joint Venture

Capacity 15.6 KTA(Kiloton Annually)

Service Scope EPC

Location Saudi Arabia

New Project in 2015

Yanbu,Saudi,Arabia

• After undertaking the cold mill steel

plant project of CSC in India, CTCI was

awarded the YNP Ti-Sponge Project,

marking a milestone for entering

overseas steel and non-ferrous plant

fields.

Titanium plant

Titanium tetrachloride

Plant

Titanium dioxide plant

20


New Project in 2015

Project Gali Batu depot trackwork project

Client Land Transport Authority ,Singapore


Length 5.6 kilometer

Service Scope EPC

Location Singapore

• After undertaking the Downtown Line and Thomson Line trackwork projects in 2011 and 2014 respectively, CTCI was awarded the Gali Batu Depot trackwork project

• The contractor having the highest market share of all undergoing trackwork projects in Singapore

Singapore

21


Backlog and Breakdown

22

Unit:NT$,Billion

154.6 153.2

163.5

187.1 190.5

100

110

120

130

140

150

160

170

180

190

200

2011 2012 2013 2014 2015

Taiwan 45%

Middle East 30%

Malaysia 19%

Singapore 3%

Other 3%

Petrochemical

32%

Refinery 23% Power 20%

Incineration 11%

Infrastructure 9%

Other 5%


On-going Projects in Middle East

Saudi Arabia

SAMAC 250KTA MMA and 40KTA PMMA Project

Qatar

Laffan Refinery 2 Project

Ethylene Cracking Furnace and Tank Project

23

Saudi Arabia

TOHO/AMIC 15.6 KTA Ti-Sponge YNP Project

Oman

Liwa Plastic Industrial Complex Steam Cracker and U&O Package


Malaysia

Petronas RAPID Refinery RFCC Project

Singapore

DTL Stage 3 MRT Trackwork Project

Thomson Line Trackwork Project

Gali Batu Depot Trackwork Project

Thailand

Thai Oil 217MW SPP Project

On-going Projects in South East Asia

24

Philippines

Pagbilao Power Station Unit 3 Seawater FGD Package Project


DORTS

Taipei MRT E&M system

Taichung MRT E&M system

Taipower

Linkou 800MWx3 Coal Fired Power Plant Renewal Project

Talin 800MWx2 Coal Fired Power Plant Renewal Project

Tung Hsiao 890MWx3 LNG fired Power Plant Renewal Project

彰化縣

CPC

Talin No.11 DHDS Project

Talin Refinery No.3 RDS Unit Revamping Project

Taichung LNG Plant Ph-II Re-gas Project

USI

Kaohsiung 50 KTA EVA Project

Asia Polymer

Linyuan 50 KTA EVA Project

OPSC

Kuanying 152 KTA PTA Project

林口觀音

On-going Projects in Taiwan

Formosa Group

Kraton 30 KTA HSBC Project

通霄

大林

25


Chimei Chemical 40,000 tons SSBR Project

On-going Projects in China

Ningbo Formosa Group 72 KTA EVA Project

Zhangchiang

26


Business Operation


Company Overview

Looking Forward


2015 3rd Quarter Consolidated Income Statement

28

2015/09/30 2014/09/30 YOY

Sales revenues 46,303,421 100.0% 40,565,082 100.0% 14.1%

Operating costs (42,537,990) -91.9% (37,467,429) -92.4% 13.5%

Gross profit 3,765,431 8.1% 3,097,653 7.6% 21.6%

Operating expenses (1,643,096) -3.5% (1,171,185) -2.9% 40.3%

Operating income 2,122,335 4.6% 1,926,468 4.7% 10.2%

Total non-operating income and

expenses 283,698 0.6% 204,973 0.5% 38.4%

Profit before income tax 2,406,033 5.2% 2,131,441 5.3% 12.9%

Income tax expense (553,077) -1.2% (405,614) -1.0% 36.4%

Profit for the period 1,852,956 4.0% 1,725,827 4.3% 7.4%

Profit attributable to Owners of the

parent 1,440,427 3.1% 1,383,184 3.4% 4.1%

Total basic earnings per share 1.90 1.85 2.7%

Unit:NTD,Thousand


2015 3rd Quarter Consolidated Balance Sheet

29

2015/09/30 2014/09/30 2015/09/30 2014/09/30

Current assets* 42,510,334 40,791,023 Current liabilities 32,068,267 30,539,297

Financial assets 995,200 1,384,584 Non-current

liabilities 6,095,831 6,523,039

Non-current assets 14,886,240 14,857,046 Long-term

borrowings 2,730,150 3,044,550

Property, plant and

equipment 6,954,750 6,977,584

Other non-

current liabilities 3,365,681 3,478,489

Intangible assets 119,498 121,412 Total Liabilities 38,164,098 37,062,336

Other non-current

assets 7,811,992 7,758,050 Total equity 19,232,476 18,585,733

Total assets 57,396,574 55,648,069 Total liabilities and

equity 57,396,574 55,648,069

*Cash and cash equivalents:NTD 7.4bn

Unit:NTD,Thousand


Unit :NTD Million, except per share data

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sales Revenues 31,519 33,582 43,954 52,244 47,098 51,877 56,279 60,522 52,223 57,692

% Growth 58.5% 6.6% 30.9% 18.9% -9.9% 10.2% 8.5% 7.5% -13.7% 10.5%

Gross Profit 1,927 2,186 3,065 3,369 3,668 4,289 4,655 5,159 4,217 4,165

% Margin 6.1% 6.5% 7.0% 6.5% 7.8% 8.3% 8.3% 8.5% 8.1% 7.2%

Net Income Before Tax

946 1,233 1,815 1,979 2,356 2,737 3,272 3,453 2,510 2,906

EPS 1.32 1.67 2.12 2.41 2.65 2.91 3.22 3.32 2.22 2.51

Cash DPS 1.00 1.32 1.74 1.92 2.37 2.42 2.76 2.84 1.99 2.23

Stock DPS 0.08 0.21 0.12 0 0 0 0 0 0 0

Payout Ratios 81.7% 91.6% 87.7% 79.7% 89.4% 83.2% 85.7% 85.5% 89.6% 88.8%

New Contract Amount

15,927 70,534 18,516 71,771 60,232 54,935 79,542 60,173 66,924 77,866

Total Backlog 53,685 91,864 67,110 86,703 100,811 100,094 154,649 153,228 163,517 187,102

Financial Data Summary

30


Financial Snapshot

Unit: NTD

31

3.7% 3.5% 3.9% 4.4% 4.7% 5.0% 5.3% 5.5% 4.1% 4.5%

10.0% 10.7%

14.1%

15.6% 16.0% 16.3% 16.7%

16.2%

10.9%

12.0%

6.1% 6.5% 7.0% 6.5% 7.8% 8.3% 8.3% 8.4% 8.1%

7.2%

1.3

1.7

2.1

2.4

2.7

2.9

3.2 3.3

2.2

2.5

1.0

1.3

1.7 1.9

2.4 2.4

2.8 2.9

2.0

2.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Return On Asset(%) Return On Equity(%) Gross Margin(%) EPS Cash DPS


Business Operation


Company Overview

Looking Forward


Strategy Overview

• The Results of Developing Overseas Markets

– Malaysia: awarded mega refinery plant project from PETRONAS

– Oman:awarded mega petrochemical plant project drom OPRIC

– Singapore: awarded MRT track work system project again

• Pursuit Reasonable Profit Projects and Enter Into Blue Ocean Market

– Select the projects with bargain chance, higher margin and added values

– Pursue FEED+EPs tenders then get the chances to persuade clients into EPC Lump sum for reasonable profit .

• Expand Products, Markets and Businesses

– New Products: such as gas plant,isoprene,coal to chemicals,LNG ex port termical,HSBC and C4,C5 derivatives

– New Markets: seek to alliance with local EPC companies and leverage the resources of oversea subsidiaries to expand the new markets, such as Indonesia,USA,Latin America and Myanmar

– New businesses: to acquire upstream key technologies ,such as LNG Tank and develop downstream channel partners, such as US construction company through M&A or investment

33


• Maintain Current Business Markets , Enhance Engineering Core Abilities

– Vertical integration of hydrocarbon business from two perspectives. The first is to expand the detail design engineering services to basic design services. The second is to expand construction, commissioning services to factory maintenance services

– For MRT Business, to expand previous rail experience to invade light rail market and acquire signal and control system through M&A

– Accumulating more experience in constructing refineries of titanium, nickel, copper, rare earth, coking plants

• Get More Long Term Contracts and Raise Stable Revenue Resources

– Developing petrochemical plant maintenance and incineration plant business in China and South East Asia

• Strength the Capability of the Oversea Subsidiaries

– For clients in Mainland China prefers local companies, JDEC can be representing CTCI Group to develop in China. JDEC has been involved in non-hydrocarbon business

– Advise the subsidiaries to upgrade independent bidding and project execution ability

• Efforts on Cost Saving

– Control the procurement costs strictly and reduce the operating expenses

Strategy Overview

34


Taiwan

Hydrocarbon:NTD50.0bn

Non-Hydrocarbon:NTD43.4bn

South East Asia



2016 Potential Opportunities

Total Amount



India



China



America and Others


35

Middle East

Hydrocarbon:NTD192bn



Thank You!

36

ctci group ctci/ investor relationship - cinda · ctci/ investor relationship •history 1959 –...

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