company overview - ctci 中鼎集團x(1)s(ffxf3c3numcnqzb3f52... · secco sar project china ......
TRANSCRIPT
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TaiwanTaiwans Leading International Engineering Firms Leading International Engineering Firm
CTCI
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2 CTCI/ Investor Relationship
Industry OutlookBusiness Operation
Financial Highlights
Looking Forward
Company Overview
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3 CTCI/ Investor Relationship
Taiwans Largest Engineering, Procurement and Construction
(EPC) Company- Over 40 years of industry experience
- Involved in numerous landmark Taiwan projects
Offering Specialized Turn-key EPC Solutions - Primarily serving in hydrocarbon market, then diversified ourselves into power, infrastructure, and
environmental industries
Significant Domestic and Overseas Experiences- Established presence in Mainland China, Southeast Asia, and the Middle East
- Designated partner of several major internationally renowned companies
One of Asias Largest EPC Players
- Total workforce of 4,200 engineers /Over 5,500 employees worldwide
- Ability to bid for EPC contracts up to USD 1 billion in size
- Ranked as 66th in ENR Ranking and recognized as one of few qualified main contractors
in the world.
Who we are Company Overview
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4 CTCI/ Investor Relationship
Paid-in Capital .. TWD 6,167M (USD 205.6M)
Shareholders Equity .. . TWD 9,499M (USD 316.6M)~as of Dec. 31, 2007 / USD:NTD=30
Company Profile
Shareholders Structure (April. 30, 2008)
CTCI Foundation 9.75%
Employee & Public 46.38%
Morgan Stanley 19.57%
Foreign Shareholders
43.87%
Company Overview
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5 CTCI/ Investor Relationship
Business Areas
Petrochemical & Chemical
Pharmaceutical & Biotechnology
Metal Mills
Refinery
Storage & Terminal
Brewery & Winery
Civil & Infrastructure
Power & Waste to Energy
Gas Processing
Environmental
Company Overview
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6 CTCI/ Investor Relationship
Feasibility Study
& Planning
Feasibility Study
& Planning
ProjectManagement
ProjectManagement
Engineering Design
Procurement FabricationFabrication ConstructionCommissioning
&Maintenance
Commissioning &
MaintenanceEnvironmentalEnvironmental
Process Design
Piping Design
Civil and Structure Design
Instrumentation and Control Design
Electrical Design
Mechanical and Equipment Design
Market Survey
Enquiry and Purchasing
Inspection and Expediting
Shipping, Delivery and Claims
Permits and Banking Affairs
Customs Clearance
Insurance
Tariffs
Subcontracting
Equipment Installation and Rigging
Piping Fabrication & Erection
Steel Structure Fabrication & Erection
Electrical Installation & Wiring
Instrument Installation, Piping & Wiring
Civil & Building
Painting & Insulation
Construction Management
Comprehensive Service
E P C
Company Overview
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7 CTCI/ Investor Relationship
Global Network of CTCI Group
Engineering HubTaipei 2,847Kaohsiung 410
3,257
Global Engineering SatellitesJingDing E&C (China) 375
ShangDing E&C(China) 159
CTCI Thailand (Thailand) 286
CIMAS Engineering(Vietnam) 209
1,029
Total 4,286
CTCI (Thailand), Thailand
CIMAS, Vietnam
Jing Ding E&C, Beijing
Shang Ding E&C, Shanghai
CTCI (Malaysia), Malaysia
CTCI Arabia, KSA
CTCI, Abu Dhabi
CTCI, Qatar
CIPEC, The Philippines
CTCI, Kaohsiung
CTCI, Taipei H/Q
Domestic Subsidiaries
CTCI Overseas, Hong Kong
Company Overview
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8 CTCI/ Investor Relationship
Competitive Advantages Company Overview
Comprehensive EPC experiences- Full Knowledge of Major Licensors and EPC Firms
- Strategic Alliance with Selected Technology Providers
- Significant EPC experiences in multiple geographical regions and industry sectors
Cost Effective- Valuable engineering design and sound project management by competent engineers and
managers
- Local engineering workforce is highly cost-competitive compared to Western and Japanese peers
- An International EPC Contractor with Local Facilities and Resources and good management of
low cost engineering resources worldwide
- Ability to source raw materials locally
Long-Standing Client Relationships- Performed EPC services for numerous major domestic and international clients
International Quality Standards- ISO 9001/ ISO 14001/ OHSAS 18001 certified
- Substantial quality control group ensures international standards of service
- Developing project management knowledge (PMP certified)
- Enhancing project risk management and claim management
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9 CTCI/ Investor Relationship
TaiwanDah-Tarn Power PlantTaiwn Power
LocationProjectClient
TaiwanTaipei MRT Hsin-Chuang Lu-Chou Line Core System ProjectTaipei City Government
TaiwanNorth LNG Receiving Terminal ProjectChinese Petroleum
TaiwanSintering ProjectDragon Steel
TaiwanLube Based Oil Project Dah-Tarn Power PlantFormosa Petrochemical
TaiwanTaipei MRT Xinyi-Songshan Line Core System ProjectTaipei City Government
MalaysiaPropylene /Butadiene Extraction ProjectTitan Petrochem
ChinaShanghai LNG Terminal ProjectShanghai LNG
ThailandPhenol/Cumene ProjectPPCL
ThailandPDH ProjectPTT/HMC
ThailandQuality Improvement ProjectBangchak Petroleum PUBLIC
ThailandCentral Utility NO.1 Phase~/ CUP- ProjectPTTUT
Saudi ArabiaEO/EG ProjectSaudi Kayan (Sabic Group)
TaiwanOlefin NO3. ProjectFormosa Petrochemical
TaiwanTaipei MRT Tucheng Line Power System ProjectTaipei City Government
QatarEthylene Package NO.2 ProjectQAPCO
LocationProjectClient
TaiwanAromatics NO.3 ProjectFormosa Chemicals & Fiber Corp.
ThailandOlefins Debottlenecking ProjectThai Olefins
On
going
Company Overview
20
07
20
06 TaiwanHigh Speed Rail ProjectTaiwan High Speed Rail
TaiwanKaohsiung MRT System Low Voltage Power Distribution ProjectKaohsiung Rapid Transit
ChinaMDI/TDI ProjectBASF/ Huntsman
LocationProjectClient
ChinaPTA ProjectOriental Petrochemical
Significant Track Records (1/2)
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10 CTCI/ Investor Relationship
LocationProjectClient
TaiwanTaipei MRT Hsin-Chuang Lu-Chou Line Core System PorjectTaipei City Government
TaiwanTrack Work ProjectKaohsiung Rapid Transit Corp.
TaiwanSM NO.3 ProjectFormosa Chemcials & Fiber
ChinaSAR ProjectSECCO
ChinaPVDC ProjectNantong SKT New Materials
U.S.ACampball Power Plant DeNOx ProjectConsumer Energy
ChinaLiquid Incineration ProjectCNOOC-Shell
IranABS/SAN ProjectGhaed Bassir Petrochemical
ChinaPTA Revamping ProjectXianglu Petrochemical
The PhilippinesGas Oil Hydrotreating ProjectPetron
VietnamPhu My3 CCPP ProjectPhu My3 Power Plant
TaiwanWujih Refuse Incineration ProjectTaichung County Government
ChinaMRC Acrylic Fibers ProjectNingbo Rayon Acrylic. Fiber
ChinaMMA ProjectLucite
ChinaLDPE ProjectBASF/YPC
LocationProjectClient
TaiwanAcetic Acid ProjectFormosa BP Chemicals
ChinaEO/EG ProjectCNOOC-Shell
ChinaC1 ProjectBASF/YPC
20
05
Company Overview
20
04
Significant Track Records (2/2)
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11 CTCI/ Investor Relationship
Company Overview
Business Operation
Financial Highlights
Looking Forward
Industry Outlook
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12 CTCI/ Investor Relationship
Industry Outlook
High Entry Barrier Unique Technical Capability and Experiences
The EPC Industry is Entering a Cyclical Upswing
- Rapidly expanding in hydrocarbon/power infrastructure needs
- Fueled by high oil price and under-investment in the 90s
Demand for EPC Services Far Exceeds Supply i.e. Sellers Market
- Limited qualified contractors and shortage of experienced EPC manpower resources
- These markets should have growth by 2010 and possibly as long as 10 years
Competition in International Markets Has Become Very Limited- High number of projects available in almost key end markets
- Most of engineering firms are currently at or above full capacity
- Japanese competitors are focusing on big-ticket LNG projects
EPC Industry Outlook
We would like to use this opportunity to gain international experience and credibility to drive faster growth
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13 CTCI/ Investor Relationship
Global Hydrocarbon and Power Investment; 2001-2030 (in USD Billion)
Global Hydrocarbon Investment; 2007-2010 (in USD Billion)
2007 2008 2010
Global Market (1/2)
121bn125bn 135bn
Data Source: Gulf Cooperation Council1. Aggregate investment each Decade; 2001-20302. Data Source: International Energy Agency
Industry Outlook
0
10
20
30
40
50
Gas Refinery Petrochemical
0
1,000
2,000
3,000
4,000
2001-2010 2011-2020 2021-2030
Hydrocarbon Power
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14 CTCI/ Investor Relationship
Projected Ethylene Demand-Supply Gap (kT)-India
Global Market (2/2)
3~4 New Ethylene Plant
Industry Outlook
2,42
4
2,42
4
2,42
4
2,42
4
2,42
4
2,42
43,9
09
4,42
6
5,01
3
5,68
8
6,45
5
7,31
1
-1,485-2,002
-2,589-3,264
-4,031-4,887
2007 2008 2009 2010 2011 2012
C2 Capacity C2 Demand DSG
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15 CTCI/ Investor Relationship
Middle EastUSD 300bn new investment within five years in oil related industryUSD 614bn/ 436bn/ 110bn investment in Oil/ Gas/ Petrochemical business during 2004-2030
ThailandPTT Group plans to inject THB 600bn new investment in hydrocarbon businessTotal THB 420bn MRT investment before 2014
VietnamUSD 5-10bn for 8,350MW Power Expansion by 2010
Mainland China11th Five -Year Plan (2006-2010)- Four New Ethylene Crackers in Planning- Total Capacity4,000K MTA EthyleneFive Sets of LNG Terminals- CNPC3 sets / Sinopec2 sets De-NOx & Incineration ProjectsRMB 600bn Investment in infrastructure business
Surging Investment in Middle East, especially in downstream productsSurge in electricity demand in China, India, Southeast Asia and Middle EastRising Demand in Developing Region, like China, India, etc.Demand for LNG expected to double
Global Opportunities
Target MarketME - Qatar, Saudi Arabia, Iran Asia - Taiwan, Thailand, India,
Mainland China and Vietnam
IndiaUSD 18bn sustained investment in hydrocarbon by 2010USD 320~550bn investment in infrastructure in five years
Industry Outlook
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16 CTCI/ Investor Relationship
Company Overview
Industry Outlook
Financial Highlights
Looking Forward
Business Operation
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17 CTCI/ Investor Relationship
1,000
11,000
21,000
31,000
41,000
51,000
61,000
71,000
2006.12.31 2007.12.31 2008.04.30
EPC Waste-to-Energy Others
in TWD million
2,028
24,562
67818,516
China
2.2%
Taiwan
10.3%
South
East
Asia
87.6%
3,004
66,947
833
70,784
Hi-tech2.2%
Enviro0.3%
Petrochemical66.5%
Others1.2%
Terminal2.5%
GeneralIndustry
0.7%
W aste-to-Energy2.7%
Infrastructure26.2%
Power22.8%
up to April.30, 2008
New Contracts
Including the projects with Letter of Intent (LOI): TWD 16,689m
Business Operation
15,810
512126
25,200
South East Asia87.6%
Taiwan10.3% China
2.1%
Infrastructure1.1%
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18 CTCI/ Investor Relationship
91,864
73,66385,430
20,000
40,000
60,000
80,000
100,000
2006.12.31 2007.12.31 2008.04.30
in TWD million
South
East Asia
46.6%
Taiwan
32.7%Middle
East
13.7%
China
6.2%
Others
0.3%
USA
0.5%
91,864
73,663
Backlog Business Operation
Power17.5%
Hydrocarbon57.1%
Infrastructure
10.3%
Terminal4.4%
Waste-to-Energy3.6%
Hi-tech3.4%
GeneralIndustry
2.2%
Others0.4%
Enviro1.1%
up to April.30, 2008
Including the projects with Letter of Intent (LOI): TWD 16,689m
74,977
Infrastructure
10.3%
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19 CTCI/ Investor Relationship
YR200528%
YR200630%
YR200743%
Evolution of Overseas Business - Proportion of Overseas Revenue of Total Revenue
Revenue Analysis Business Operation
Taiwan56.9%
Thailand27.0%
China5.0%
SoutheastAsia(Ex
Thailand)5.4%
Middle East5.5%
Others0.2%
Taiwan70.1%
Southeast Asia (ExThailand)
3.0%
Middle East6.0%
Thailand14.4%
Others0.1%
China6.4%
Power24.0%
Infrastructure12.8%
Incineration7.6%
Industry7.5%
Others3.0%
Hi-tech6.8%Environment
1.3%Hydrocarbon
37.0%
Hydrocarbon54.2%
Environment1.0%
Others1.0%
Infrastructure8.1%
Power19.4%
Hi-tech6.5%
Incineration4.6%
GeneralIndustry
5.3%
YR2007YR2006
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20 CTCI/ Investor Relationship
Company Overview
Industry OutlookBusiness Operation
Looking Forward
Financial Highlights
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21 CTCI/ Investor Relationship
Financial Data Summary
Pro forma consolidated results.
70,78415,92731,94553,50224,99819,176New Contract Amount
91,86453,68570,53363,45827,97222,671Total Backlog
92%82%72%83%75%84%Payout Ratios
0.210.0790.10.1----Stock DPS
1.321.00.71.11.01.18Cash DPS
1.671.321.111.451.341.40Reported EPS
997775642794730764Net Income
6.5%6.1%5.3%10.0%10.3%11.9%% Margin
2,1861,9271,1801,6341,6451,701Gross Profit
6.5%43%35%3%12%% Growth
33,58231,51922,06116,34315,92414,267Revenues
200620052004200320022001
in TWD million, except per share data
High Dividend Pay-out Policy
Financial Highlights
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22 CTCI/ Investor Relationship
YR2007 Performance and Dividend Financial Highlights
(61.5%)13%5%Stock Dividend Payout Ratio
(42.9%)0.210.12Stock Dividend
3.8%79%82%Cash Dividend Payout Ratio
31.8%1.321.74Cash Dividend
(5.4%)92%87%Payout Ratio
27.5%1.672.13EPS
31.1%9971,307Net Income (after tax)
(1.7%)288283Non-Operation Income
61.9%9461,532Operation Income
(23.5%)(1,241)(1,533)Operation Expense
40.1%2,1873,065Gross Profit
30.9%33,58243,954Revenue
YoY(%)20062007
3.94%4.47%
8.27%
9.55%
11.65%
14.27%
5.39%6.24%5.3%
6.1%6.5%
7.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2004 2005 2006 2007
ROA ROE Gross Margin
Significant growth inRevenue
Gross ProfitNet Income
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23 CTCI/ Investor Relationship
(75.3%)(2.9%)(239)(3.8%)(419)Operating Expense
in TWD million
41.5%0.410.58EPS (TWD)
59%3.0%2443.6%388Net Income (after tax)
(37.9%)8754Non-Operation Income
90%3.1%2504.4%475Operating Income
82.8%6.0%4898.2%894Gross Profit
33.2%100%8,146100%10,853Revenue
YoY(%)%2007Q1
(un-Audited)%2008Q1
2008Q1 Income Statement (Consolidated) Financial Highlights
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24 CTCI/ Investor Relationship
2008Q1 Balance Sheet (Consolidated) Financial Highlights
Liabilities & Shareholders EquityAssets
19,24824,059Current Liabilities24,45032,634Current Assets
in TWD million
32,89441,527Total Liabilities &
ShareholdersEquity
32,89441,527Total Asset
9,08210,407Shareholders Equity592548Other Assets
163228Intangible Assets
9651,483Other Liabilities6,4676,992Fixed Assets
3,5995,577Long-term Liabilities1,2221,125Funds and Investment
2007Q1(un-Audited)
2008Q12007Q1(un-Audited)
2008Q1
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25 CTCI/ Investor Relationship
Company Overview
Industry OutlookBusiness Operation
Financial Highlights
Looking Forward
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26 CTCI/ Investor Relationship
0
100
200
300
400
500
600
700
800
95 96 97
Potential Opportunities
Area
TWD 253bnTotal
TWD 35bnDomestic Non-Hydrocarbon Market
TWD 44bnOverseas Non-Hydrocarbon Market
TWD 54bnDomestic Hydrocarbon Market
TWD 120bnOverseas Hydrocarbon Market
HYDROCARBON69%
NON-HYDROCARBON
31%
18.5bn
70~80bn70.8bn
2006 2007 2008
Others1%
South EastAsia23%
China6%
EmergingMarket
3%
Taiwan24%
Middle East43%
YR2008 Market Opportunities Looking Forward
2008 Potential Opportunities
2008 Potential Opportunities Breakdown
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27 CTCI/ Investor Relationship
Middle EastSouth East AsiaChina
Substantially Expand Global
MarketEmerging MarketIndia (Setting Subsidiary)Russia and Central Asia
New Market Development
Desalination
Environment and
Energy Saving
(E & ES Business)
New Business Approach
Aramco/Total Jubail Export Refinery (KSA)
Aramco/Dow Ras Tanura ComplexRefinery (KSA)
Aramco/ConocoPhillips YanbuExport Refinery (KSA)
Aramco/Sumitomo Petro RabighRefinery (KSA)
Aramco Eastern Refinery (KSA)QP Al Shaheen Refinery (Qatar)
RPL Jamnagar RefineryIOCL Paradip Refinery &
ComplexEssar Jamnagar Refinery &
Complex
Tatarstan Refinery & Complex
Kazakhstan Complex
YR2008 Business Strategy Looking Forward
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28 CTCI/ Investor Relationship
Business Momentum
Revenue Enlarged from Solid Backlog
Margin Improved
- Increasing favorable projects with good margin contribution in 2008- Risk mitigation by hedging raw materials (copper, nickel, etc.) and currency- Enhanced project management and global logistic capabilities
IPO of Subsidiaries
Planned IPO of subsidiaries mainly for - Expansion in environmental resources business in China and South East Asia - Expansion in EPC business in Thailand
Global Resource Management- Setting Stronghold in India through local subsidiary- Strengthen China subsidiary as EPC prime contractor.- Promote CTCIT as the regional EPC center in Southeast Asia
Sound Corporate Governance
- Three independent directors in BOD- Risk committee together with three functional committees of BOD (Corporate Governance
Committee/ Audit Committee /QA and HSE Committee)- Grade A Company of TSEC Information Disclosure and Transparence Ranking in 2005, 2006
Looking Forward
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29 CTCI/ Investor Relationship
Thank you for your lasting support