Swancor Ind. Co., LTD
Company Profile
May 2016
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Disclaimer
 This document may be deemed to contain forward-looking statements. These
forward-looking statements include, among other things, statements regarding
future events and the future financial performance of Swancor that involve risks
and uncertainties. Readers are cautioned that these forward-looking statements
are only predictions and may differ materially from actual future events or
results.
 Any projections in the document are based on limited internal and external
information currently available to Swancor, which is subject to change. Actual
events or results could differ materially and no reader of this document should
assume later that the information provided today is still valid. Such information
speaks only as of the date of this document.
 Readers shall rely on self-judgment to makes any investment decision. Readers
shall not interpret the information in this document to be investment
recommendations.
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Vision
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Basic Information
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Business Units and Products
Swancor
Fine
Chemical
Anti-corrosion
Resin
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Wind Turbine
Blade Shell
Resin
Carbon Fiber
Composite
(Sunwell (Jiangsu)
Carbon Fiber
Composite)
New Energy
Development
(Swancor
Renewable)
Other
Materials
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Off-shore
Wind Farm
(Formosa I)
Fine Chemical and
Composite Material
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Anti--corrosion Resin in Power Plants
Anti
 Desulfurization tank uses around 20 ton of resin.
 Wet electrostatic precipitator (WESP) tank uses around 30-80 tons of resin.
 Chimney uses around 120-140 ton of resin.
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Chimney
Desulfurization tank
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Anti--corrosion Resin
Anti
 Major applications are anti-corrosion tanks and pipes for factories, desulfurization tanks, pipes,
chimneys for power plants.
 Broad customer base. Sales through direct sales or distribution, lot by lot.
 Major competitors are Ashland (US) and DSM (Holland),
 2014 sales revenue was NT$ 2,248MN, 37.6% of total sales. Sales quantity was 24.8 thousand ton.
 2015 sales revenue was NT$ 2,347MN, 24.3% of total sales. Sales quantity was 27.1 thousand ton.
 2015 China market was about 70 thousand tons. Global market was about 250 thousand tons.
Swancor sales quantity was about 11% of global market.
 Major components:
乙烯基酯樹脂
(Vinyl ester, VE)
環氧樹脂
(Epoxy)
雙酚A（Bisphenol A,
BPA）
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苯乙烯 (Styrene
Monomer, SM)
環氧氯丙烷
(Epichlorohydrin, ECH)
乙烯
(Ethylene)
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甲基丙烯酸
(Methacrylic acid,
MAA)
苯 (Benzene)
Wind Turbine Blade
 Swancor resin is used to make wind turbine blade shell. 1.5MW wind turbine uses
around 6.5 tons while 2MW wind turbine uses around 9 tons.
 Structure adhesive is another Swancor product under customer approving. The usage is
about 1/10 of shell.
 Wind turbine over 6MW might use carbon fiber composite to make spar. For wind
turbine with 77.7 meter blade, total blade weight is about 27 tones and spar weight is
around 4.3 tons, 16% of total weight.
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Green Energy Material
 Most revenue of green energy is from wind turbine blade resin .
 Major customers are China wind turbine blade makers, both domestic and international , total 17
companies. Sinoma Science & Technology (SZE: 002080)、Zhongfu composites and TPI
Composites are some of the major customers.
 Business is direct sales. Entry barriers in technical and customer are high.
 Major competitors are Hexion (US), Dow (US), and, BASF(German).
 2014 sales revenue was NT$ 3,438MN, 57.5% of total sales. Sales quantity was 28 thousand ton.
 2015 sales revenue was NT$ 6,864MN, 73.6% of total sales. Sales quantity was 53 thousand ton.
 Estimated per MW of wind turbine uses 4.3 tons of resin, 2015 China market was about 140
thousand tons and global market was about 270 thousand tons. Swancor sales quantity was about
38% of China market and 20% of Global market。
 Major components:
風電葉片基體樹脂
(Resin of wind turbine blade)
環氧樹脂
(Epoxy)
雙酚A
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硬化劑
(Hardener)
環氧氯丙烷
(Epichlorohydrin, ECH)
（Bisphenol A, BPA）
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New Markets, New Products of Fine Chemical
 Further expanding anti-corrosion resin and wind turbine blade shell resin
business into South-East Asia and India.
 Structural adhesive
 The most critical part of wind turbine blade.
 Resin usage is about 1/10 of shell.
 In the process of customer approving.
 Carbon fiber composite
 Resin of carbon fiber is Swancor’s existing business. New product line is
carbon fiber composite.
 Target applications are spar of wind turbine blade and car parts.
International customers are evaluating Swancor products.
 New factory was open on 2016/4/26.
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Off--shore Wind Farm
Off
Developer and Power Plant
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Taiwan Energy Market Outlook
 Total market
 2015, total electric power was 40.6GW and electricity production was 258TWh.
 2015, nuclear electric power was 5.14GW(12.7%) and electricity production was 36.4 TWh
(14.1%).
 Renewable energy
 2015, total electric power was 4.3GW (10.6%) and electricity production was 10.4 TWh
(4.1%).
 2015, solar and wind electric power was 1.5GW in total, electricity production was 2.3 TWh.
 2030, target of renewable electricity power is 17.3GW, electricity production was 40 TWh.
 New government set a more aggressive target for renewable energy to produce 50 TWh, or
20% of total electricity production, by 2025.
39TWh
36TWh
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Offshore Wind Power in Taiwan
 In 2012, Bureau of Energy set a target
to build 1,000 wind turbines by 2030.
 In 2015, Bureau of Energy announced
36 sectors for off-shore wind farm
developing.
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Unit:
MW
2016
2020
2025
2030
Off-shore
wind turbine
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520
3,000
4,000
Estimated
market value
(NT$ BN)
3
78
450
600
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Swancor OffOff-Shore Wind Farm
 Swancor wind farm, Formosa I, located 2-6 kilo meters from Miaoli coast with 18-31
meters water depths. The location provides low risk and low cost advantages.
 In phase I, Formosa I will build two wind turbines with 8MW capacity by 2016. In
phase II, will build additional wind turbines with 128 MW total capacity by 2019.
MiaoLi
x
Phase I
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Structure of Swancor OSWF
Swancor
Founder
NT$ 855 MN
NT$200 MN
Formosa I
Swancor Renewable
Wind farm developer
Develop
service
Wind farm.
Special purpose vehicle.
Operate
Build
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Funding
Permit
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Business Model of Swancor OSWF
 Formosa I is a offshore wind farm, 95% owned by Swancor. The business model is:
 Will generate revenue by producing electricity. In phase I, with 8 MW capacity,
estimated average monthly revenue is around NT$12 MN to NT$ 14 MN.
 The needed capital for power plant is enormous. Formosa I will seek international
investors.
 Swancor owner will be diluted to 10%-15% after phase II financial close.
 Swancor Renewable is a developer, 100% owned by Swancor. The business model is :
 Charge power company management fee in the developing stage.
 After wind farm developed, receive success fee from power company. The industry
standard for success fee is 4% to 7% of total investment, paid by milestones.
 The management fee and success fee will be the operating income of Swancor
renewable.
 Basic plan and milestones
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Swancor 4733
Financials
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Income Statement
NT$ Thousand
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2016Q1 Income Statement
* ROE is annualized.
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2016Q1 Sales Revenue by Product
NT$ Mullion
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2016Q1 Sales Revenue by Region
NT$ Mullion
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Balance Sheet
NT$ Thousand
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2016Q1 Balance Sheet and Financial Indexes
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2016Q1 Cash Flow
 Free cash flow =
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operating cash flow - investment cash flow
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SWANCOR IND. CO.,
LTD
Green Energy &
Environmental
Protection
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Thank You!
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