lcy(1704) investor conference

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.

2


AGENDA

1. Financial Information

2. Q & A

3. Backup Slide-

LCY Company Introduction

3


Financial Information

4


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.

15

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


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.

16

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


Performance by products from Jan to Sep

Unit: NT$ thousand

15

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%


Q & A

8


Backup SildeLCY Company Introduction

9


Vision and Values

10

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


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

11

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.


Geographically Diverse

4

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

43

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


Products & Services

13

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


R & D Center

14

• 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


Business and Operation

15

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

16

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


Occupational Safety & Process Safety

17

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!



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