CTCI Corporation
The 2nd Investor
Conference, 2018
2018.09.06
Agenda
• Operation Review – Jan. to Jul., 2018
• Business Outlook
• Financial Highlights – the 2nd Half of 2018
2
Operation Review – Jan. to Jul., 2018
3
Copyright © 2016 CTCI All Rights Reserved.
2018 Awards and Certifications
4
• Taiwan Sustainability
Index
• MSCI Taiwan Small Cap
Index
• Taiwan Stock Exchange
(TWSE) Indices:
‒ TWSE CG 100 Index
‒ FTSE TWSE Taiwan
Mid-Cap 100 Index
‒ FTSE TWSE Taiwan
Eight Industries Index
‒ Taiwan RAFI® EMP 99
Index
‒ Taiwan HC 100 Index
REBRAND 100®
Global Awards
Sector 2017 2018
International Contractors 99 76
Global Contractors 125 126
International Design
Firms71 75
Global Design Firms 126 146
The CommonWealth Magazine
Top 2,000 Enterprises Survey
Company Item 2016 2017
CTCI
Contractor 1 1
Top 50 Most
Profitable
Companies
(net profit after tax)
28 22
Top 650 in Service
Industry24 25
Company Item 2016 2017
CTCI
SECContractor 31 41
CTCI
MACContractor 42 39
ECOVE Investment Holding 8 8
ECOVE
ESC
Environmental
Services3 2
CTCI
ASI
IT Equipment Sales
and Services42 33
ENR Magazine Rankings
Copyright © 2016 CTCI All Rights Reserved.5
PS. The contract amounts of projects selected as best
applicants as of Aug. 2018 are about NT$10 billion.
77.9
64.5
85.6
44.4
60.3
0
10
20
30
40
50
60
70
80
90
2014 2015 2016 2017 July-2018
Unit: NT$, Billion
New Contracts and Breakdown
Taiwan 44%
Southeast Asia31% United States
19%
China 5%
Middle East 1%
Hydrocarbon 52%
Industrial 33%
Transportation11%
Environmental 2%Power 1%
Other 1%
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Backlog and Breakdown
6
Taiwan 54%
South East Asia31%
United States6%
Middle East 6%
China 3%
Environmental32%
Hydrocarbon31% Power 14%
Industrial13%
Transportation10%
Unit: NT$, Billion
187 191
203
166
195
0
50
100
150
200
250
2014 2015 2016 2017 July-2018
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Major Projects Awarded in 2018
7
Taiwan
Taichung Power Plant Coal Handling System Improvement Project
Taipei Wanda Line Phase I System E&M Project
Thailand PTT Group LNG Receiving Terminal Project
India Adani Group LNG Receiving Terminal Project
China Foxconn Group TFT-LCD High-End Cleanroom Project
United
StatesPetrochemical plant EPC Project *
Singapore
Refinery Plant FEED Project Awarded by an American Oil Company*
Petrochemical Plant FEED project Awarded by a Middle Eastern
Petrochemical Company*
*Not yet receiving client’s consent to disclose the project details
Copyright © 2016 CTCI All Rights Reserved.
Client Taiwan Power Company
Project Taichung Power Plant Coal Handling System Improvement Project
Contractor CTCI
Scale 1.15 MTA
Scope Engineering, Procurement, Construction and Commissioning
8
Major Project Awarded ‒ Taiwan
Taichung
Note: Once completed, this will be the system with the largest scale in Taiwan to prevent the coal dust emission from floating.
Copyright © 2016 CTCI All Rights Reserved.
Client Department of Rapid Transit Systems, Taipei City Government
Project Taipei Wanda Line Phase I System E&M Project
Contractor CTCI and Alstom
Scale 9.5 km (9 stations and 1 depot)
Scope Engineering, Procurement, Construction and Commissioning
Major Project Awarded ‒ Taiwan
9
Taipei Phase IPhase II
Copyright © 2016 CTCI All Rights Reserved.
Note:This is by now the most advanced TFT-LCD panel production among the world’s 10.5 generation
TFT-LCD manufacturers.
Major Project Awarded ‒ China
Client SAKAI SIO International Guangzhou Co., LTD (Foxconn Group)
Project TFT-LCD High-End Cleanroom Project
Contractor CTCI Shanghai
Scale 140,000 m2
Scope Procurement, Construction and Commissioning
10
Guangzhou
Copyright © 2016 CTCI All Rights Reserved.
Note: This is the LNG receiving terminal project with largest contract size for CTCI.
Major Project Awarded ‒ Thailand
Client PTT LNG Company Limited
Project Nong Fab LNG Receiving Terminal Project
Contractor CTCI and Saipem
Scale 7.5 MMPTA
Scope Engineering, Procurement, Construction and Commissioning
Nong Fab
Thailand
11
Copyright © 2016 CTCI All Rights Reserved.
Note: The first time CTCI awarded a contract by Adani group, one of the top 5 leading enterprises in India.
Major Project Awarded ‒ India
Client Dhamra LNG Terminal Private Limited (Adani Group)
Project Dhamra LNG Receiving Terminal Project
Contractor CTCI
Scale 55 MMTPA
Scope Engineering, Procurement, Construction and Commissioning
Dhamra
12
Business Outlook
13
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Business Outlook
Taiwan
Hydrocarbon
• LNG Receiving Terminal:
- CPC: 3rd LNG Terminal Tank, Taichung LNG Phase III, Yung-An
Plant Expansion
- TPC: Taichung
• CPC & CGTD Tank Farm Project
• CPC Investment of High Value-added Petrochemical Products
Power & Energy
• Several power plant expansion projects including Dah Tarn,
Taichung, Shen Ao, and Hsin Ta
• IPP gas-fired power plant expansion projects including ChiaHui and
Kuo-Kuang
• Offshore Wind Farm
• Taichung power plant units 5~10 and IPP Air quality control system
• Kaohsiung Linhai Waste Water Reclamation Plant BTO Project (has
been selected as the best applicant team)
• Taoyuan City Biomass Energy Center BOT Project (has been
selected as the best applicant team)
Infrastructure
• The Shared Utilities for Taoyuan International Airport T3 Area
Project
• Taipei circular line Phase 2 & 3 E&M Project14
Copyright © 2016 CTCI All Rights Reserved.
Asia
• China: Gulei Petrochemical Complex
• Macao: Municipal Solid Waste
Incineration Plant Project
• Thailand: PTTLNG 2nd Terminal
expansion project and 3rd LNG receiving
terminal project、mega petrochemical
projects、Bangkok MRT project
• Philippines: Waste to energy project
• Malaysia: MPetronas RAPID Post-
RAPID Investment、Penang LRT、IPP
gas-fired power plant
• Singapore: Refinery and petrochemical
projects
• Bengal: LNG receiving terminal project
• Vietnam: LNG receiving terminal project、Hanoi MRT project
• Indonesia: Refinery project
• India: Refinery and petrochemical
projects
The North America
• Louisiana: petrochemical plant of
Formosa group
• Texas: petrochemical plants of Middle
Eastern companies
The Middle East and North
Africa
• KSA: Aramco oil and gas project、the largest Oil-to-Chemical plant in
the world、Cogen power plant
• UAE: Gasoline & Aromatics project
• Kuwait: KIPIC petrochemical
complex
• Algeria: New refinery plant
The Commonwealth of
Independent States
• Russia: PTA/PET detail design work
• Kazakhstan: PTA/PET FEED work
Business Outlook
15
Copyright © 2016 CTCI All Rights Reserved.
Taiwan
Hydrocarbon:47.9bn
Infrastructure, Environment, and Power:44.2bn
Southeast Asia
Hydrocarbon:68.0bn
Infrastructure, Environment, and Power:36.8bn
India
Hydrocarbon:10.0bn
Total Amount
Hydrocarbon:408.1bn
Infrastructure, Environment and
Power:106.7bn
China
Hydrocarbon:10.0bn
Infrastructure, Environment, and Power: 5.0bn
CIS and Others:
Hydrocarbon:25.9bn
Potential Opportunities in Next 12 Months
Unit:NT$
United States
Hydrocarbon:81.1bn
16
Middle East
Hydrocarbon:165.2bn
Infrastructure, Environment, and Power:20.7bn
Financial Highlights – 1st Half of 2018
17
Copyright © 2016 CTCI All Rights Reserved.
Consolidated Sales Revenues and Breakdown
18
57.7
67.1 70.5 71.6
34.0
0
10
20
30
40
50
60
70
80
2014 2015 2016 2017 July-2018
Unit: NT$, Billion
Taiwan 37%
South East Asia32%
Middle East24%
China 5%
United States 2%
Hydrocarbon51%
Power 22% Environmental11%
Transportation7%
Industrial 6%
Others 5%
Copyright © 2016 CTCI All Rights Reserved.
1st Half of 2018 Consolidated Income Statement
Unit: NT$, Thousand
2018/06/30 2017/06/30
Sales Revenues 27,896,747 100% 32,479,440 100%
Operating costs -25,892,560 -92.8% -30,105,962 -92.7%
Gross Profit 2,004,187 7.2% 2,373,478 7.3%
Operating expenses -903,974 -3.2% -1,020,816 -3.1%
Operating income 1,100,213 3.9% 1,352,662 4.2%
Total non-operating income
and expenses193,963 0.7% 879,371* 2.7%
Profit before income tax 1,294,176 4.6% 2,232,033 6.9%
Income tax expense -311,733 -1.1% -331,957 -1.0%
Profit for the period 982,443 3.5% 1,900,076 5.9%
Profit attributable to Owners of
the parent727,722 2.6% 1,657,531 5.1%
Total basic earnings per share 0.95 2.18*
19
*This includes an one-off gain of NT$ 959 million, which is equivalent to basic earnings of NT$1.26 per share.
Copyright © 2016 CTCI All Rights Reserved.
1st Half of 2018 Consolidated Balance Sheet
Unit: NT$, Thousand
2018/06/30 2017/06/30
Current assets* 48,074,239 76.4% 47,487,187 75.8%
Non-current assets 14,869,370 23.6% 15,186,626 24.2%
Total assets 62,943,609 100.0% 62,673,813 100.0%
Current liabilities 38,896,624 61.8% 38,074,466 60.8%
Non-current liabilities 4,683,320 7.4% 5,194,840 8.3%
Total Liabilities 43,579,944 69.2% 43,269,306 69.0%
Equity attributable to owners of
the parent16,434,513 26.1% 16,582,672 26.5%
Non-controlling interest 2,929,152 4.7% 2,821,835 4.5%
Total equity 19,363,665 30.8% 19,404,507 31.0%
Total liabilities and equity 62,943,609 100.0% 62,673,813 100.0%
*Cash and cash equivalents:NT$15.3bn
20
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Dividend Payout
21
2.412.65
2.91
3.22 3.32
2.22
2.512.69
2.92
3.68
1.92
2.37 2.42
2.76 2.84
1.99 2.23
2.40 2.60
3.23
80%
89%
83%86% 85%
90% 89% 89% 89% 88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EPS Cash DPS Cash Dividend Payout Ratio(%)Unit: NT$
Copyright © 2016 CTCI All Rights Reserved.22