taiwan prosperity chemical corporation 4q/2014³•說會簡報檔_英文版.pdf · (460 kta)...
TRANSCRIPT
![Page 1: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/1.jpg)
TPCC
Taiwan Prosperity Chemical Corporation
4Q/2014
Investors’ Conference
April 08, 2015
![Page 2: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/2.jpg)
TPCC
Disclaimer
The forward-looking statements contained in this presentation are
subject to risks and uncertainties and actual results may differ
materially from those expressed or implied in these forward-looking
statements.
Taiwan Prosperity Chemical Corporation makes no representation or
warranty as to the accuracy or completeness of these forward-looking
statements and nor does Taiwan Prosperity Chemical Corporation
undertake any obligation to update any forward-looking
statements, whether as a result of new information or future events.
![Page 3: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/3.jpg)
TPCC
Agenda
• Company Snapshot
• 4Q/2014 Financial Results
• Business Overview
• Capital Expenditure
• 1H/2015 Business Outlook
3
![Page 4: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/4.jpg)
TPCC 4
Taiwan Prosperity Chemical Corp.
Established: May, 1991
Headquarter: Taipei, Taiwan
IPO in TWSE: October, 2007
Outstanding Shares: 292 million shares
Market Cap:
(as of March 20, 2015,NTD25.05 per share) NTD 7,314 million
(USD/NTD=31.459) ( USD 232 million )
Production facility: Lin Yuan, Kaohsiung, Taiwan
Employees: 223
(as of 12/31/2014)
![Page 5: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/5.jpg)
TPCC
Production Facility
Kaohsiung
(TPCC)
Beijing
Shanghai
1.Cumene
(460 KTA)
2.Phenol/Acetone
(360 KTA/221 KTA)
3.Bisphenol-A
(107 KTA)
4.Anone
(150 KTA)
5.MAN
(40 KTA)
6.H2-I
(7K Nm3/hr)
H2-II
(8.1K Nm3/hr)
7. BDO
(34 KTA)
![Page 6: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/6.jpg)
TPCC
Agenda
6
• Company Snapshot
• 4Q/2014 Financial Results
• Business Overview
• Capital Expenditure
• 1H/2015 Business Outlook
![Page 7: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/7.jpg)
TPCC7
4Q/2014 Statement of Comprehensive Income
(In NT millions except otherwise
noted)4Q/14 3Q/14 4Q/13 QoQ % YoY %
Net Sales 4,237 6,257 5,759 (32.3) (26.4)
COGS (4,498) (6,215) (5,917) (27.6) (24.0)
Gross Profit (261) 42 (158) (721.6) (65.2)
Gross Margin -6.2% 0.7% -2.7% (6.9) (3.5)
Operating Expense (111) (127) (132) (12.9) (16.2)
Operating Income (372) (85) (290) (337.2) (28.2)
Operating Margin -8.8% -1.4% -5.0% (7.4) (3.8)
Non-operating
Income/(Expense)(53) (20) (25) (163.6) (112.6)
Income before Tax (424) (105) (315) (304.2) (34.8)
Income Tax Benefit/(Expense) 72 8 54 795.4 32.7
Net Income (Loss) (353) (97) (262) (263.7) (34.7)
Net Margin -8.3% -1.6% -4.5% (6.7) (3.8)
![Page 8: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/8.jpg)
TPCC
4Q/2014 Statement of Comprehensive Income
8
(In NT millions except otherwise
noted)4Q/14 3Q/14 4Q/13 QoQ % YoY %
Net Income (Loss) (353) (97) (262) (263.7) (34.7)
Other Compresensive Income
(Loss)(87) 22 57 (498.5) (252.5)
Total Comprehensive Income
(Loss)(440) (75) (205) (483.3) (114.6)
Basic EPS (NT$) (1.21) (0.33) (0.90) (266.7) (34.4)
ROE -23.8% -6.3% -16.8% -17.5% -7.0%
ROA -8.0% -1.2% -6.1% -6.8% -1.9%
Free Cash Flow (70) (583) 228 88.0 (130.7)
Free Cash Flow = Operating Cash Flow - CAPEX –LT Investment
![Page 9: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/9.jpg)
TPCC
Year 2014 Statement of Comprehensive Income
9
(In NT millions except otherwise noted) 2014 2013 YoY %
Net Sales 23,107 22,579 2.3
COGS (23,172) (22,786) 1.7
Gross Profit (65) (207) 68.6
Gross Margin -0.3% -0.9% 0.6
Operating Expense (479) (512) 6.5
Operating Income (544) (719) 24.4
Operating Margin -2.4% -3.2% 0.8
Non-operating Income/(Expense) (137) (48) (184.8)
Income before Tax (680) (767) 11.3
Income Tax Benefit/(Expense) 105 114 (8.2)
Net Income (Loss) (576) (653) 11.8
Net Margin -2.5% -2.9% 0.4%
![Page 10: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/10.jpg)
TPCC
Year 2014 Statement of Comprehensive Income
10
(In NT millions except otherwise noted) 2014 2013 YoY %
Net Income (Loss) (576) (653) 11.8
Other Compresensive Income (Loss) (26) 239 (111.0)
Total Comprehensive Income (Loss) (602) (414) (45.6)
Basic EPS (NT$) (1.97) (2.24) 12%
ROE -9.6% -9.9% 0.3%
ROA -2.5% -4.3% 1.8%
Free Cash Flow (891) 245 (464.4)
Free Cash Flow = Operating Cash Flow - CAPEX -LTInvestment
![Page 11: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/11.jpg)
TPCC
4Q/2014 Statement of Cash Flow
11
(In NT millions except otherwise noted) 4Q / 14 3Q / 14 4Q / 13
Cash Flows From Operating Activities
Income before Tax (425) (105) (316)
Adjustments to reconcile income
to net cash provided by operating activities391 (414) 669
Net cash generated from operating activities (34) (519) 353
Cash Flows From Investing Activities (103) (91) (172)
Cash Flows From Financing Activities (1,080) 1,119 (505)
Net Increase In Cash And Cash Equivalents (1,218) 509 (323)
Cash And Cash Equivalents, Begining Of Period 1,358 849 1,171
Cash And Cash Equivalents, End Of Period 140 1,358 848
![Page 12: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/12.jpg)
TPCC
2014 Statement of Cash Flow
12
(In NT millions except otherwise noted) 2014 2013
Cash Flows From Operating Activities
Income before Tax (680) (768)
Adjustments to reconcile income
to net cash provided by operating activities33 1,316
Net cash generated from operating activities (647) 548
Cash Flows From Investing Activities (317) (313)
Cash Flows From Financing Activities 255 172
Net Increase In Cash And Cash Equivalents (708) 407
Cash And Cash Equivalents, Begining Of Period 848 441
Cash And Cash Equivalents, End Of Period 140 848
![Page 13: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/13.jpg)
TPCC
Sales/ GM & PAT
13
3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Sales 6,489 6,235 5,310 5,922 5,588 5,759 6116 6498 6257 4,23
PAT -124 -118 -53 -105 -233 -262 -51 -75 -97 -353
GM 0.1% 0.3% 1.1% 0.7% -2.7% -2.7% 1.2% 1.3% 0.7% -6.2%
-10%
-5%
0%
5%
10%
15%
20%
25%
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000 NT$,M GM (%)
![Page 14: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/14.jpg)
TPCC
Financial Structure
14
2.0
2.1 1.1
1.3
1.3
0.0
0.5
1.0
1.5
2.0
2.5
2010Y 2011Y 2012Y 2013Y 2014Y
45%38%
45%
58%
59%
0%
20%
40%
60%
80%
2010Y 2011Y 2012Y 2013Y 2014Y
31.1 29.823.5 21.6
19.610
15
20
25
30
35
40
2010Y 2011Y 2012Y 2013Y 2014Y
Current ratio
D/A Ratio
Book Value-1.2%
2.5%
30.6% 29.0%
56.9%
29.6%26.3%
25.5%23.6%
30.5%
-20%
0%
20%
40%
60%
2010 2011 2012 2013 2014
Net Debt/ Equity Debt/ Asset
Leverage Ratios (%)
![Page 15: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/15.jpg)
TPCC
Agenda
• Company Snapshot
• 4Q/2014 Financial Results
• Business Overview
• Capital Expenditure
• 1H/2015 Business Outlook
15
![Page 16: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/16.jpg)
TPCC16
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1 3 5 7 9
11 1 3 5 7 9
11 1 3 5 7 9
11 1 3 5 7 9
11 1 3 5 7 9
11 1 3 5 7 9
11 1 3 5 7 9
11 1 3 5 7 9
11 1 3 5 7 9
11 1 3 5 7 9
11 1 3
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year - Month
CPC Propylene/Benzene (USD/MT)
Propylene
Benzene
![Page 17: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/17.jpg)
TPCC17
0
500
1,000
1,500
2,000
2,500
1 3 5 7 91
1 1 3 5 7 91
1 1 3 5 7 91
1 1 3 5 7 91
1 1 3 5 7 91
1 1 3 5 7 91
1 1 3 5 7 91
1 1 3 5 7 91
1 1 3 5 7 91
1 1 3 5 7 91
1 1 3
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year、Month
BPA
Phenol
Anone
Phenol/BPA/Anone monthly average Price (USD/MT)
![Page 18: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/18.jpg)
TPCC
Worldwide Phenol Capacity & Demand Outlook
18
Unit:KT/YR 2013 2014 2015 ( E ) 2016 ( E )
Phenol Capacity 11,981 12,536 13,381 13,901
Bisphenol A 4,126 4,233 4,438 4,619
Phenolic Resins 2,532 2,567 2,666 2,763
Anone 1,134 1,221 1,327 1,345
Others 1,385 1,409 1,447 1,479
Phenol Demand 9,177 9,430 9,878 10,206
Capacity - Demand 2,804 3,106 3,503 1,264
Utilization Rate, % 77% 75% 74% 73%
![Page 19: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/19.jpg)
TPCC
China Phenol Capacity & Demand
Source:
19
0
500
1,000
1,500
2,000
2,500
3,000
2013 2014 2015 2016
Capacity DemandUnit:KT
Capacity Annual Grouth Rate:15.4% Demand Annual Grouth Rate:9.3%
![Page 20: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/20.jpg)
TPCC
TPCC Sales Volume in Recent Years(Unit : MT)
20
2009 2010 2011 2012 2013 2014
486,148 587,477 601,101 624,392 527,039 538,790
![Page 21: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/21.jpg)
TPCC
Sales Destination of 2014 vs 2013
21
0%
10%
20%
30%
40%
50%
60%
Taiwan India America North Asia China Others South & East Asia
Middle-East
2014
2013
Taiwan India America North Asia China OthersSouth & East
AsiaMiddle-East
2014 43% 15% 13% 8% 6% 6% 5% 2%
2013 52% 18% 2% 8% 8% 5% 4% 4%
![Page 22: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/22.jpg)
TPCC
TPCC Business
Cumene PlantPhenol/Acetone/AMS Plant
Anone Plant
BPA Plant
Propylene
Benzene
cumene
Phenol
Acetone
Anone
BPA
Acetone
Phenol
Cumene
AMSAMS
H2-II Plant
H2-I Plant
No 1 Steam/MAnPlant
No 2 Steam/MAnPlant
BDO Plant THF Plant
LNG
BDO
THF
GBL
MAn
LNG
nC4
nC4
10 Sites And 10 Products
Possessed Capacity Leased Capacity – To Be Completed By Q1 2015
22
![Page 23: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/23.jpg)
TPCC
TPCC BDO Derivatives Development Plant
C4 SPLITER
MAN PLANT
BDO PLANT
PTMEGPLANT
NMPPLANT
NHEPPLANT
POLYOLPLANT
PBTPLANT
C4
n-C4
Crude Man
GBLTHF
BDO
NVPPLANT
PVPPLANT
PVP
NHEP
NVP
NMP
SPANDEXPLANT
TPU COPOLYESTER
SPANDEXFIBER
PUPLANT
PUPaint
PUFoam
PUAdhesive
PULeather
PBT COMPOUNDINGPLANT
ENGINEERINGPLASTICS
The High Value-added Petrochemical
23
![Page 24: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/24.jpg)
TPCC
MAn Series Production Capacity
2013*2012
80 KTA40 KTA
BDO eq. Expansion
34 KTA
MAn Expansion
*: TPCC estimation
24
![Page 25: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/25.jpg)
TPCC
Agenda
• Company Snapshot
• 2Q/2014 Financial Results
• Business Overview
• Capital Expenditure
• 2H/2014 Business Outlook
25
![Page 26: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/26.jpg)
TPCC
Capital Expenditures NT$ M
26
0
100
200
300
400
500
600
700
2010 2011 2012 2013 2014 2015 ( E )
![Page 27: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/27.jpg)
TPCC
Agenda
• Company Snapshot
• 4Q/2014 Financial Results
• Business Overview
• Capital Expenditure
• 1H/2015 Business Outlook
27
![Page 28: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/28.jpg)
TPCC
1H/2015 Business Outlook-1
• Benzene
1. Supply from Asia will be increased by 1 million tons in 1H/2015 due to new capacity put in service.
2. Benzene price in 2015 shall be more stable due to new capacity on stream.
• Propylene
1. The CPC supply will be improved in 2015, due to CPC completed turn around for new Naphtha Cracker and RFCC in 2014.
2. Propylene price in 1H/2015 would increase, due to shut down of many crackers during March-May 2015.
3. Four PDH plants in China put in service, propylene production would increase by around two million mt to untighten supply after Jun/2015.
28
![Page 29: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/29.jpg)
TPCC
1H/2015 Business Outlook-2
29
• Phenol Chain Market – U.S. and Europe economics recover, and
China remained stable. Demand will be picked up gradually in Year 2015
compared to last year. In Asia, four new plants (one million MT) will be on
stream in 1H/2015, it will impact overall capacity utilization.
• Corporate strategy – To cope with threats in over supply market
trends, heavy attention will be paid to achievement of best possible margin
rather than highest production. Reduce operation cost by flexible operation
lines.
• Business strategy – Our strategy is to increase our sales to different
countries/areas to reduce the dependence on China market. Utilized
equipment leasing strategies to maintain revenue growth and promote sales
on new series of products (BDO/THF/GBL).
![Page 30: Taiwan Prosperity Chemical Corporation 4Q/2014³•說會簡報檔_英文版.pdf · (460 KTA) 2.Phenol/Acetone (360 KTA/221 KTA) 3.Bisphenol-A (107 KTA) 4.Anone (150 KTA) ... Taiwan](https://reader031.vdocuments.net/reader031/viewer/2022012320/5afab9be7f8b9ae92b8e2240/html5/thumbnails/30.jpg)
TPCC
Thank You
30