南六企業股份有限公司 Enterprise CO.,LTD Comfortable Satisfactory Joyful 股票代號 :6504 Stock Code:6504.TT 1
Disclaimer The above statements that pertain to future projections constitute the expectations, opinions, outlooks, or predictions of our company based on information available at the time the statements were made. Such statements may be affected by known and unknown risks and inherent uncertainties, the existence or emergence of facts or factors that differ from the assumptions, suppositions, or judgments of the Company, or other factors. Consequently, there may be significant discrepancies between actual results pertaining to the Company's future earnings, management results, financial conditions, and other matters as explicitly or implicitly referred to in the statements and the content of such statements. The presentation is run exclusively for the purpose of providing information and not for the purpose of soliciting investments or recommending the buying or selling of specific shares or products. Company makes no warranty concerning the accuracy or completeness of the information and will not be liable for any damages arising out of use of the Information. 免責聲明 以下報告係依公司現有資訊而做成, 內容中的財務或相關資訊包含一些對本公司未來前景的說明, 這些說明易受重大的風險和不確定性因素影響, 致使最後結果與原先的說明有差異, 因此本公司特此聲明, 本報告中的內容, 僅為資訊流通之目的而公佈, 並非投資建議, 本公司不對報告內容的正確性 完整性或任何使用本報告內容所產生的損害負任何責任 2
Applications For Nonwoven We foucs on 3
Production Technology Carded Tech Wetlaid Tech Spunmelt Tech Airlaid Tech Hot Air Bonding Thermal Bonding Mechanical Bonding Chemical Bonding SpunBond Meltblown Electrostatic Spinning Needlepunch Spunlance Spunlace Nonwoven Fabrics Traditiona Woven Fabrics A disposable designed for a single use Superior strength and durability 4
Company Profile Establishment: Dec, 1, 1978 Products: Capital: NT$726 MN Total employee: PP viscose pet 884 (as of Mar 31, 2018) Vertical Integration TW:294 ;China:590 Fabrics Air Through & Thermalbond Fabrics Spunlaced Fabrics Founder: Secondary Processing Disposable surgical gowns Fabrics Finish Products Baby Wet Wipes Cosmetics ( face masks ) Chairman MR. HUANG,CHIN-SAN Branded distributor Branded distributor CEO MR. HUANG,HUO-CUN 5
Industry Overview (Asia) 2016: Nanliu Thermalbond capacity (18,600ton /Y) around 9% in 2015 Asia) 2016: Nanliu spunlaced capacity (43,200 ton / Y ) around 6.65% in 2015 Asia Source:ANFA 2015 ( Nonwovens_Production_in_Asia_2015.pdf ) 6
Nonwovens Industry International Top 40 Companies 2014 2015 2016 company Sales$ country 2014 2015 2016 company Sales$ country - 1 1 Berry Plastic $2.00 bn US 34 32 21 Jofo Nonwovens $247 mn China 2 2 2 Freudenberg $1.70 bn Germany 21 21 22 Pegas Nonwovens $236 mn Czech 3 3 3 Kimberly-Clark $1.30 bn US 25 24 23 Enterprise $213mn Taiwan 5 4 4 Ahlstrom $1.25 bn Finland 33 22 24 Mitsui Chemicals $207mn Japan 4 5 5 DuPont $1.0 bn US 29 23 25 Asahi Kasei $202 mn Japan 8 7 6 Johns Manville $725 mn US 24 25 26 Gulsan $200mn Turkey 6 6 7 Fitesa $708 mn US 27 26 27 Fibertex Nonwovens $200 mn Denmark 7 8 8 Glatfelter $589 mn US - - 28 Xingtai Nonwovens $176 mn China 9 9 9 Suominen $475mn Finland 30 28 29 Precision Custom Coatings $175 mn US 10 10 10 TWE Group $440 mn Germany 26 27 30 Tenowo $171 mn Germany 11 11 11 Low & Bonar $407 mn Finland 31 29 31 Hassan Group $171 mn Turkey 14 13 12 Lydall $400 mn US 23 29 31 Union Industries $170 mn Italy 13 12 13 Georgia-Pacific $380 mn US 35 31 33 KNH Enterprises $150 mn Taiwan - - 14 Zhejiang Kingsafe $365 mn China - - 34 Dalian Ruiguang $143 mn China 12 15 15 Jacob Holm $350 mn Switzerland - - 35 Spuntech $138 mn Israel 17 16 16 Hollingsworth & Vose $350 mn US 39 33 36 Toyobo $125 mn Japan 16 18 17 Toray Advanced Materials $341 mn Korea 38 36 37 Saudi German Nonwovens $125 mn Saudi Arabia 19 14 18 Avgol Nonwovens $339 mn Israel 38 37 38 Mogul $121 mn Turkey 18 19 19 First Quality Nonwovens $300mn US - 34 39 Shalag Nonwovens $120 mn Israel 20 20 20 Fibertex Personal Care $283 mn Denmark - 38 40 Unitika $93 mn Japan Sourcehttp://www.nonwovens-industry.com/heaps/view/3809/1/256445 7
Revenue Split by Products Unit:NT$ million 5,343 727 13.6% 5,922 895 15.1% 6,090 999 16.4% 6,434 988 1494 15.4% 23.2% Disposable Surgical gowns Fabrics 1,325 24.8% 1,504 1581 25.4% 26.0% Spunlance Nonwoven Fabrics 2,249 42.1% 2,337 39.5% 2237 36.7% 2452 38.1% 1,503 218 365 14.5% 24.3% 1,646 207 405 12.6% 24.6% Wet wipes & Cosmetics 1,042 1,186 1273 19.5% 20.0% 20.9% 1500 2014 2015 2016 2017 23.3% 357 23.8% 376 Air Through & Thermal Bond Nonwoven Fabrics Source: Company Filings 8 563 37.4% 658 2017.1Q 2018.1Q 40.0% 22.8%
Revenue Split by Country Unit:NT$ million 5,922 5,343 172 686 3.2% 12.8% 253 598 11.2% 837 14.1% 966 2,546 47.7% 2,184 4.3% 6,090 234 1,053 17.8% 1,297 36.9% 2,314 3.8% 21.3% 15.9% 38.0% 6,434 208 1,302 674 2,978 3.2% 20.2% 10.5% 46.3% 1,503 49 303 221 3.3% 20.1% 14.7% 1,646 32 292 180 2.0% 17.7% 10.9% Revenue 100% others Asia Japan China 1,342 1,595 25.1% 26.9% 1,279 21.0% 1,272 19.8% 626 41.7% 798 304 20.2% 344 48.5% 20.9% Taiwan 2014 2015 2016 2017 2017.1Q 2018.1Q Source: Company Filings 9
Company Location SuZhou Shanghai Pudong HangZhou NingBo Vertical Integration Fabrics Secondary Processing Pinghu plant 1.100km away from Pudong airport (1.5 hour drive) 2.10 km away from Jiashan South Railway Station One stop shopping Cost Adventage Finish Products Economies Scale Qiaotou plant (Headquarters) Yenchao plant 10
Competitive Advantage Spunlace Fabrics Before fine tune After Nanliu s fine tune Baby wipes & Facial mask 1.High Quality production: 100-10,000 class Clean room 2.One-stop production: From NW to end product (mask, wet wipe) (we say one dragon style ) 3.EDI pure water lab (for wet wipe) 4.Automated production machines (for face mask and baby wipes) Nanliu's experienced senior engineers and RDs with over 20+ years in operations enjoying a very good reputation on quality and quick delivery around the world. Disposable Surgical gown Fabrics Nanliu s one-stop production: From manufacture of spunlace NW to finishing processing Pros:Shorter lead-time Longer lead-time and more costly 11
Shipments of disposable surgical gowns fabrics unit:tons 1359 1320 1303 1853 1921 1812 1841 1900 1701 1627 1574 1543 1535 1522 1385 1389 1271 1081 1208 688 805 912 533 211 358 358 266 資料來源 : 南六企業財務部彙整 12
Financial Highlights (by month) 2016.Jan ~ 2018.Apr Consolidated revenue Unit:NT$ million 479 382 575 473 534 522 473 482 544 535 588 502 502 425 576 501 535 560 519 594 544 566 580 530 587 468 589 536 unit:nt$ million Con.revenue Jan Feb Mar Apr 2018 587 468 589 536 YOY 17.07% 10.24% 2.38% 6.99% Unit: NT$ million Acc.Sales Jan~Apr 2018 2182 YOY (%) 8.88% Source: Company Filings 13
Potential drivers Taiwan new factory will be READY in 2018.2Q~2018.3Q 2017.4.20 2018.03.30 2018.04.23 2018.01.24 2018.02.27 2017.8.16 2017.12.27 2017.9.24 2017.10.24 2017.11.20 2015.01.22 2016.10.15 An estimated NT$3bn will be invested over time, Creating 100 employment opportunities 2016.10.15 14
Potential drivers (I) New Product 2017.10.24 2017.4.20 2017.8.16 2017.9.24 2017.11.20 2018.01.24 2017.12.27 2018.02.27 2018.03.30 2018.04.23 15
Growth potential(inside) 1. Diversification operation (focus on disposable products) 2.Vertical Integration (add value) Vertical Integration Fabrics Air Through & Thermalbond Fabrics Spunlaced Fabrics 3.Innovation Pure cotton nonwoven fabrics Secondary Processing Disposable surgical gowns Fabrics Finish Products Baby Wet Wipes Cosmetics ( face masks ) 16
Growth potential(outside) in China Two child policy >18.46 Bn(F) Unit: % Urbanization rural urban 16.55 Bn 74 26 61 39 47 53 43 57 2015 2016(F) 1990 2002 2012 2016 Disposable income(per capita) Increasing 23,821 RMB 12,520 RMB Source:National Bureau of Statistics of China Source:National Bureau of Statistics of China 2010 2016 17
Business Strategy Startup: household products (e.g., dish scrubber) Development: daily supplies (e.g., surface material for sanitary pad, diaper) Growth: spunlace nonwoven fabrics for sanitary supplies, diversification into biotech segment (facial masks, skincare products) Acceleration: pulp/spunlace nonwoven fabrics, built and expanded Pinghu plant at Zhejiang Breakout: research and innovation leader shaping client demand Flushable Fabrics Pure We cotton are ready Fabrics to the Future plans 1978~1987 年 Startup 創業期 1988~1998 Development 1999~2007 Growth 2008~2018 Acceleraton 2018 and beyond Breakout 18
Eco-Friendly 4
Recycle Appendix Wooden pallet Recycle Wet wipes RO Recycle Water Recycle Wastewater Treatment 4
用水量 (T) 用水量 (T) Water Recycle Appendix 350000 300000 250000 200000 150000 100000 50000 0 A3 车间用水量对比 283540 310276 172734 37024 28764 2013 年 2014 年 2015 年 2016 年 2017 年 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 B3 车间用水量对比 170368 94309 27170 36247 38572 2013 年 2014 年 2015 年 2016 年 2017 年 4
Solar Panel Appendix Now Before 4
Revenue,GM, OPEXP, OPM Ratio yearly Trends Consolidated Revenue 100% ( unit:nt$ million) 5,343 5,922 6,090 6,434 4,568 3,519 3,700 1,677 1,904 2,315 2,858 1,646 17.03% 18.34% 19.77% 19.45% 20.21% 19.28% 19.13% 16.91% 18.16% 13.30% 16.42% 9.16% 11.09% 11.20% 12.68% 11.39% 11.39% 9.91% 12.12% 11.98% 6.18% 6.63% 10.40% 11.08% 5.34% 3.54% 4.54% 8.58% 8.76% 9.18% 8.68% 8.25% 7.53% 7.89% 7.74% 7.00% Gross Margin OP Margin OPEX ratio 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018.1Q Ramp-up period for China Factory Source: Company Filings 23
Net Profit, Net Margin Ratio yearly trends Net Profit (NT$ million) Net Margin % 581 582 541 377 420 6.51% 5.29% 109 100 2.05% 0.17% 3.96% 139 5.32% 196 8.25% 7.86% 9.82% 9.56% 8.42% 6.04% 99 47 5.2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018.1Q Ramp-up period for China Factory Source: Company Filings 1.Material price Soaring 2. Flooding hurt us 24
Dividend Policy,EPS,ROE, Cash flow Source: Company Filings EPS ROE 17.38% 15.22% 12.28% 19.32% 15.64% 13.72% 18.26% 16.72% 23.45% 5.39 19.35% 8.01 5.79 23.20% 21.62% 8.02 19.35% 7.46 2.33 1.86 2.81 3.09 7.06% 1.03 2.58 2.38 6.12% 1.45 0.69% 0.10 2.32 3.19 1.37 (1Q) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018.1Q 1.Dividend Policy:around 45~55% 2.We don t like to take money from shareholders. ( ex. Cash capital increase, CB ) Dividend 2014 2015 2016 2017 EPS 5.79 8.01 8.02 7.46 CASH 2.8 3.9 4.8 4.5 STOCK 0 0 0 0 Payout Ratio 48.4% 48.7% 60% 60.3% Selected Cash Flow Statement Items NT$ million 2014 2015 2016 2017 Cash from Operating Activities 524 628 808 767 Cash from Investing Activities (370) (363) (254) (1060) Cash from Financing Acvitities (252) (68) (285) 745 Effect of Exchange Rate changes on cash and cash equivalents NET INCREASE IN CASH AND CASH EQUIVALENTS 39 (7) (221) (14) (59) 190 48 438 Capex (343) (358) (222) (1064) Depreciation & Amortization 262 268 298 303 25
The End Thank you Thanks for your attention. Have a great day. 26