NanLiu is your best health guardian!

Transcription

1 Nan Liu Enterprise Co., LTD. Friendly Reminder Wiping hands frequently, keeps germs away NanLiu is your best health guardian! 1

2 Nan Liu Enterprise Co., LTD. 2

3 Summary 1. What is nonwovens fabrics? 2. Production Processes for Nonwovens Fabrics 3. Applications for Nonwovens Fabrics 4. NanLiu s Products 1 Preface 2 Finance 1. Historical Revenue & Profit Records 2. Net Profit Rate 3. ROE 4. Cash Flow Analysis 5 Export Sales Breakdown by Market 1. R & D 2. Future Favorable Factors 3. Future Strategy 4. Capacity Expansion Plan 5. Company Introduction 4 Development 3 Market Analysis Nonwovens Market 1. Japan 2. Asia 3. China (Baby Wipes) Competitive Advantages 3

4 What Is Nonwoven Fabric? Definition and Value Chain of Nonwovens Fabrics Nonwovens are a manufactured sheet, web or bat of directionally or randomly oriented fibers, bonded by friction, and/or cohesion and/or adhesion, excluding paper or products which are woven, knitted, tufted stitch bonded incorporating binding yarns or filaments, or felted by wet milling, whether or not additionally needled. The fibers may be of natural or man-made origin. They may be staple or continuous or be formed. From EDANA DEFINITION Spunlace Nonwoven Fabrics Traditional Woven Fabrics A disposable designed for a single use Superior strength and durability 4

5 Production Process Process: Overall nonwoven capacity in China reached 3.44mn tones in 2012, of which Spunlace nonwoven accounted for 8% or 275.2k tones. Nanliu is the largest Spunlace nonwoven maker in Greater China that has total capacity of 43.2k tones, implying 15.7% volume shares. Source:CNITA

6 Applications For Nonwoven We focus: 6

7 Nanliu s Product A) Spunlace NW B) Wet Wipes Medical gown, wipes, wet wipes, face masks, cleansing wipes C) Air Through NW & Thermal Bond NW Face Masks, Cosmetics disposable surgical gowns Source: Nanliu 7

8 Revenue Breakdown (unit:ton)

9 Market Competitive Analysis - Surgical Advantage Gowns Plup/Spunlace nonwoven fabrics account for 20% of overall medical use nonwoven. DuPont is the major supplier with 75-78% of market share, followed by Nanliu s 20%. Source:CNITA 2012 SMMS Nonwoven still accounts for 80% of medical use nonwoven market given lower price Garment OEMs Competitive Advantage Nanliu s one-stop Longer lead-time and more costly Back-end Surface Processing production: From manufacture of spunlace NW to back-end surface processing Pros:Shorter lead-time

10 Competitive Advantage Before fine tune After Nanliu s fine tune What is Nanliu s advantage if competitors in China purchase the same equipments? Nanliu has many senior RDs with over 20 years experience and better quality or shortest leadtime of the globe 10

11 Historical Revenue & Profit Trend China site started official operation Source:Nanliu Taiwan Revenue Only Including China Revenue 11

12 Consolidated Month Revenue 2011.Jan~2014.Jan Revenue(NT$100 million) 25 days CNY 25 days 25 days CNY 25 days 25 days CNY Unit: NT$100millIon Con.Sales Q1 Q2 Q3 Q4 All year YOY 16.29% 22.85% 25.43% 28.27% 23.44% Unit:NT$100million Acc.Sales Jan YOY 11.76% Source: Nanliu 12

13 Capacity Expansion High level of Automation equipments: Spunlace NW line MP by Aug (6.2m wide/1,500 tonne/month; dedicated to wet wipes) Air Through & Thermal Bond machine for baby daipers s surface material 2 product line machine in Pinghu; onstream in Sep 2014 Packaging machine for wet wipes a) 1 mini wet wipe machine in Pinghu; onstream in Aug 2013 b) 1 large wet wipe machine in Taiwan; onstream in Oct c) 1 large wet wipe machine in Pinghu; onstream in Mar

14 Net Profit Trend Net Profit Unit:NT$ 100million Ramp-up period for China site Source: Nanliu 14

15 Gross Margin & Net Profit Trend 52.5 (pre-tax) 71.5 Source: Nanliu 15

16 Net Profit Trend Net Margin(%;after tax) 6.46% Ramp-up period for China Site Source: Nanliu 16

17 ROE Trend 2013Q3:6.90% 2013Q2:5.05% 2013Q1:4.99% Ramp-up period for China site Source: Nanliu 17

18 Cash Flow Ramp-up Period for China site Net Profit Operating Cash Flow Investment Cash Flow Financial Cash Flow 年度 (1~9) Net Profit 當年度稅後淨利 43,828 33,137 69,283 60,709 98, ,793 43, , ,477 47,445 5, , , ,802 A. 營業活動淨現金 OCF OCF B. 投資活動淨現金 ICF ICF C. 融資活動淨現金 FCF FCF 營業活動淨現金 / 稅後淨利 OCF/PAT Source: Nanliu 104,159 46,201 81, , , , , ,557 45,771 52, , , , ,117 (182,695) (33,609) (54,788) (44,177) (277,753) (139,031) (120,588) (419,030) (563,392) (134,708) (173,879) (207,441) (687,326) (275,860) 72,942 4,938 (26,363) (67,930) 171,400 77,588 (5,553) 161, , ,116 81,582 (20,294) 209,425 (51,587) % % % % % % % % 45.55% % % % % % 18

19 Revenue Breakdown by Market Revenue Breakdown by Country Other, 2.31% ~09 Other, 1.95% Asia, 16.43% Japan, 17.79% 2011 China, 25.14% Other, 2.00% Asia, 15.44% Japan, 14.25% China, 34.19% 2012 Japan, 13.72% Asia, 15.40% total 75.14% China, 43.71% total 61.31% total 65.88% 19

20 Market Analysis - Japan Unit:10K Tone 45 國內需求量 Demand 生產量 Supply Japan introduced monetary stimulus measures In Short Supply Growing Demand Source:ANFA Tnet Nanliu 20

21 Market Analysis - Asia Source:ANFA

22 Market Analysis - China China: Population of 0-3 Year-Olds 26.24mn 31mn Debate Over One-Child Policy Rural couples in Shanghai and Guangzhou have been entitled to have a second child Potential National Deployment Source:Frost & Sullivan 22

23 Market Analysis - China Average Amount of Spending Per Child Source:Frost & Sullivan Post-80s parents are willing to pay higher premium for child's health, education, and welfare; meanwhile, they have strong loyalty to foreign brands 23

24 Market Analysis - Wet Wipes Company Supplied by Nanliu 1 Mamy Poko V 2 J&J 3 KC- Kleenex V 4 Good Baby V 5 Pampers 6 Elsker 7 Pigeonbaby 8 YFY (Mayflower) V 9 Enphant V 10 Combi 24

25 Market Analysis - Wet Wipes According to China regulations, name and address of the local manufacturer must be highlighted on the outer packing, which helps Nanliu to gain increasing traction from new customers. 25

26 Competitive Advantage High Quality production: ,000 class Clean room One-stop production: From NW to end product (mask, wet wipe) EDI pure water lab Spunlace NW: Application includes surgical gown and repetitive use wipes The widest Spunlace NW production line of 6.2M of the world 26

27 Competitive Advantage Awarded No.38/Top-10 in Asia in Nonwoven Industry magazine, 2013 company sales country 2012 Nonwovens Sales Last Year company sales country 1 Freudenberg $1.50 billion DEU(Germ any) 1 22 Buckeye Technologies $228 million U.S Dupont $1.35 billion U.S Japan Vilene $209 million JPN 13 3 Ahlstrom $1.30 billion FIN 5 24 Asahi Kasei $201 million JPN 16 4 Kimberly-Clark $1.25 billion U.S Union Industries $189 million ITA 24 5 Polymer Group, Inc. (PGI) $1.15 billion U.S Mitsui Chemicals $183 million JPN 20 6 Fitesa $712 million U.S Jacob Holm Industries $171 million CHE 23 7 Glatfelter $683 million U.S Fibertex Nonwovens $161 million DEN 35 8 Johns Manville $670 million U.S Gulsan $160 million TUR 9 Suominen $602 million FIN Georgia-Pacific $155 million U.S Fiberweb $460 million U.K 9 31 Tenowo $152 million DEU 11 TWE Group $400 million DEU 32 Andrew Industries $150 million U.K Bonar $379 million NLD 33 Hassan Group $147 million TUR Sandler $326 million DEU Precision Custom Coatings $145 million U.S Avgol Nonwovens $315 million ISR Propex Holdings $140 million U.S Hollingsworth & Vose $305 million U.S Dalian Ruigang Nonwovens Group $140 million CHN 16 Companhia Providencia $273 million BRA Toyobo $129 million JPN CECEP New Materials Group $256 million HK(China) 38 Nan Liu Enterprise $128 million Taiwan Toray Advanced Materials $251 million JPN Spuntech Industries $127 million ISR First Quality Nonwovens $250 million U.S Jofo Nonwovens $125 million CHN Pegas Nonwovens $248 million U.S Lydall $118 million U.S Fibertex Personal Care $235 million DEN Last Year

28 Competitive Advantage Certification: ISO9001 ISO14001 ISO13485 F S C GMPC ISO22716 OHSAS

29 Recent Developments Future target Flexible Medical use Fabrics Anti-Virus NW products In progress Biodegradable (corn fabrics) NW Loofah solution products Ventilate film Medical use wood pulp spunlace NW fabrics Developed 3D Thermal bond fabrics for diaper surface 3D wipes Men s wet wipes Invisible mask fabrics Flexible NW fabrics for diaper waistband RS Fullerene products 29

30 Company Strategy Nanliu s company strategy Maintain product variety and high market share Expand overseas market along with customers Increase product quality and value content 30

31 Company Background Establishment: Dec, 1, 1978 Chairman: MR. HUANG,CING-SHAN CEO: MR. HUANG,HUO-CUN Paid in Capital: NT$726 mn Total Employee: 712 (as of Jan, 31, 2014) Production sites:qiaotou (Kaohsiung), YenChao (Kaohsiung), Pinghu (Zhejiang, China) 31

32 Company Background Qiaotou plant (Headquarters): No.88, BiXiu Rd., Qiaotou District, Kaohsiung City Convenient Transportation Easy access via MRT, HSR and near Kaohsiung Airport Yenchao plant: No , SiLin Rd, Yenchao District, Kaohsiung city Nanliu TaiNan, LiuJia 32

33 Company Background Pinghu plant:no. 2188, XinKai Rd, Economic Development Zone, Pinghu city, Zhejiang province SuZhou Shanghai Pudong 1.Center of Shanghai and Hangzhou 2.100km away from Pudong airport (1.5 hour drive) 3.10 km away from Jiashan South Railway Station HangZhou NingBo Product: Spunlace NW, Medical use fabrics, fabrics for wipes, wet wipes, mask, cleansing cotton, PP NW fabrics etc. Operation:since Feb Location:ZheJiang Pinghu Economic Development Zone Capital input: USD 45 mn Registered capital input: USD 12 mn Area:82,000m 2 33

34 Company History Startup phase:nanliu was founded and started with dish washing sponge Developing phase:installed 3 Thermal bond, 1 air-through equipment for diaper and sanitary pad surface use NW fabrics Growing phase:installed Spunlace NW production lines and wet wipes packaging equipments for new NW fabrics applications Leaping phase:ramp up of Pinghu plant and started production of medical use fabrics Thriving phase:to become top-20 NW manufacturer of the world 1978~1987 Startup phase 1988~1998 Developing 1999~2007 Growing 2008~2018 Leaping 年以後 - 卓越期 Thriving 34

35 Company motto The Perfect Cycle 35

36 Thank you Thank you for your attention. Have a great day. 36