Company Overview - CTCI 中鼎集團X(1)S(ffxf3c3numcnqzb3f52... · SECCO SAR Project China ... Company Overview 2004 Significant Track Records (2/2) ... C2 Capacity C2 Demand DSG

TaiwanTaiwans Leading International Engineering Firms Leading International Engineering Firm

CTCI

2 CTCI/ Investor Relationship

Industry OutlookBusiness Operation

Financial Highlights

Looking Forward

Company Overview


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


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


Business Areas

Petrochemical & Chemical

Pharmaceutical & Biotechnology

Metal Mills

Refinery

Storage & Terminal

Brewery & Winery

Civil & Infrastructure

Power & Waste to Energy

Gas Processing

Environmental

Company Overview


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


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


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


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


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


ChinaPTA ProjectOriental Petrochemical

Significant Track Records (1/2)



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


TaiwanAcetic Acid ProjectFormosa BP Chemicals

ChinaEO/EG ProjectCNOOC-Shell

ChinaC1 ProjectBASF/YPC

20

05

Company Overview

20

04

Significant Track Records (2/2)


Company Overview

Business Operation


Looking Forward

Industry Outlook


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


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


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


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


Company Overview

Industry Outlook


Looking Forward

Business Operation


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%


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%


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


Company Overview


Looking Forward



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



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


(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


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


Company Overview



Looking Forward


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


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


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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Documents

Company Overview - CTCI 中鼎集團X(1)S(ffxf3c3numcnqzb3f52... · SECCO SAR Project China ... Company Overview 2004 Significant Track Records (2/2) ... C2 Capacity C2 Demand DSG