Comfortable Satisfactory Joyful · 2019-04-12 · 1 1 1 Berry Global $2.30 bn US 19 19 21 First Quality Nonwovens $300 mn US 2 2 2 Freudenberg $2.10 bn Germany 21 22 22 PF Nonwovens(Pegas)

南六企業股份有限公司Nan Liu Enterprise CO.,LTD

Stock Code：6504.TW

Comfortable

Satisfactory

Joyful

1

Nan Liu

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.

Cautionary Statement

2

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

NAN LIU - LOGO

Pure

Honesty

Sustainability

Continuous Growth

Joy

Enthusiasm

Applications for Nonwoven

4

We focus on

Hygiene Packing

Protection Car Street

Agriculture Construction Filter Industry Filter

Cosmetics Medical

Industry Wipe

Our Products

Carded Tech

Mechanical

Bonding

Hot Air Bonding

Thermal Bonding

SpunlanceNeedlepunch

Chemical

Bonding

Spunmelt Tech Airlaid TechWetlaid Tech

SpunBond

Production Technology

Meltblown ElectrostaticSpinning

Spunlace FabricsWoven Fabrics

Warp

6

Weft

Thermal Bond

Establishment: 1978

Capital: NT$726mn

Total employee:

908 (as of Dec 31, 2018)

TW：325；China：583

Headquarters: Kaohsiung, Taiwan

Founders：

Company Profile

7

Chairman

MR. HUANG,CHIN-SAN

CEO

MR. HUANG,HUO-CUN

Spunlaced Fabrics

Disposable surgical gowns

Fabrics

Baby Wet Wipes

Cosmetics

( face masks…)

Air Through &

Thermalbond Fabrics

Vertical Integration

Fabrics

Secondary Processing

Finish Products

PPviscose

pet

Branded distributor Branded distributor

Products：

8

Company Location

Qiaotou plantYanchao plant

Yanchao New plant (Headquarters) TAIWAN

9

Company Location


Fabrics

Secondary Processing

Finish Products

One stop shopping Economies ScaleCost Advantage

Shanghai

Pudong

SuZhou

NingBoHangZhou

1.100km away from Pudong airport (1.5 hour drive)

2.10 min away from Jiashan South Railway Station

Pinghu plantCHINA

(I) Competitive Advantage

Before fine tune After Nanliu’s fine tune

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.

Spunlace Fabrics

Baby wipes & Facial mask

1.High Quality production：

100-10,000 class Clean room

2.One-stop production：

From NW to End product (Facial 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)

10

Longer lead-time and

more costly

Nanliu’s one-stop production：From manufacture of spunlace

NW to finishing processing

Pros: Shorter lead-time

Disposable Surgical gown Fabrics

Core competence & industry leading position

11

(II)

1. Diversification

(focus on disposable products)

2.Vertical Integration

(add value)3.Innovation

Pure cotton

nonwoven fabricsSpunlaced Fabrics

Disposable surgical gowns

Fabrics

Baby Wet Wipes

Cosmetics

( face masks…)

Air Through &

Thermalbond Fabrics


Fabrics

Secondary

Processing

Finish Products

Core competence & Industry leading position

12

Startup: household products (e.g., dish scrubber)

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

1978~1987年創業期

1999~2007

Growth

2008~2018

Acceleraton

1978~1987

Startup

2019 and beyond

Breakout

Development: daily supplies (e.g., surface material for sanitary pad, diaper)

1988~1998

Development

Flushable FabricsPure cotton Fabrics

We are ready to the Future plans

Nan Liu Milestone

Industry Overview (Asia)

Source：ANFA 2016 ( Nonwovens_Production_in_Asia_2016.pdf )

2017：Nan Liu Thermalbond

capacity (18,600ton /Y)

around 8.26% in 2016 Asia)

13

2017：Nan Liu spunlaced capacity

(43,200 ton / Y )

around 5.71% in 2016 Asia

Solid LT International brand clients

https://www.nonwovens-industry.com/heaps/view/4963/1/296300

2015 2016 2017 company Sales$ country 2015 2016 2017 company Sales$ country

1 1 1 Berry Global $2.30 bn US 19 19 21 First Quality Nonwovens $300 mn US

2 2 2 Freudenberg $2.10 bn Germany 21 22 22 PF Nonwovens(Pegas) $264 mn Czech

3 3 3 Kimberly-Clark $1.30 bn US 25 26 23 Gulsan Groups $244mn Turkey

4 4 4 Ahlstrom $1.25 bn Finland 24 23 24 Nan Liu Enterprise $229mn Taiwan

5 5 5 DuPont $1.0 bn US 26 27 25 Fibertex Nonwovens $217 mn Denmark

6 7 6 Fitesa $838 mn US 22 24 26 Mitsui Chemicals $215mn Japan

7 6 7 Johns Manville $725 mn US 23 25 27 Asahi Kasei $214 mn Japan

8 8 8 Glatfelter $627 mn US 30 31 28 Hassan Group $178 mn Turkey

13 12 9 Lydall $522mn US 29 32 29 Union Industries $176 mn Italy

9 9 10 Suominen $511 mn Finland - 28 30 Xingtai Nonwovens $175 mn China

10 10 11 TWE Group $450 mn Germany 28 29 30 Precision Custom Coatings $175 mn US

11 11 12 Low & Bonar $407 mn Netherlands 27 30 32 Tenowo $173 mn Germany

- 14 13 Zhejiang Kingsafe $385 mn China 35 33 Spuntech $168 mn Israel

17 19 14 Sandler Group $382 mn Germany 31 33 34 KNH Enterprises $145 mn Taiwan

12 13 15 Georgia-Pacific $380 mn US - 34 35 Dalian Ruiguang $143 mn China

16 16 16 Hollingsworth & Vose $371 mn US 33 36 36 Toyobo $135 mn Japan

14 18 17 Avgol Nonwovens $367 mn Israel 37 38 37 Mogual Spunbond Nonwovens $128 mn Turkey

18 17 18 Toray Advanced Materials $355 mn Korea 38 40 38 Unitika $127 mn Japan

15 15 19 Jacob Holm $350mn Switzerland 34 39 39 Shalag Nonwovens $125 mn Israel

20 20 20 Fibertex Personal Care $317 mn Denmark 36 37 39 Saudi German Nonwovens $125 mn Saudi Arabia

14

Nonwovens Industry International Top 40 Companies

15

Growth opportunities in China

Two child policy Urbanization

Disposable income(per capita) Increasing

2010 2017

25,974 RMB

12,520 RMB

Source：National Bureau of Statistics of China

18.46 mn

2015 2016

16.55

mn

2017

17.23 mn

ruralurban

Unit: %

2002 201720121990

74

26

61

39 4753

41.48

58.52

Key growth drivers

16

2015.01.22

2016.10.15

2016.10.15

Taiwan new factory is READY - 2019.1Q

An estimated NT$3bn will be invested over time,

Creating 100 employment opportunities

(I) Yanchao New Plant

2019.02.01

New plant (Headquarter)

17

2019.2.1

Pure Cotton

Spunlace FabricsHigh Speed Spunlace

Fabrics

Office

Wet wipes

Facial mask

New plant (Headquarter)

INDIA – Ahmedabad Plant

INDIA plant is under construction& estimated to start production by early 2020

Sanand-II Industrial estate, Ahmedabad, Gujarat

Area – 42,000 sq.m

Feb,2019

Revenue Split by Products

Source: Company Filings 19

Unit：NT$ million

Disposable

Surgical gowns

Fabrics

Spunlance

Nonwoven Fabrics

Air Through &

Thermal Bond

Nonwoven Fabrics

Wet wipes &

Cosmetics

1,186 1273 1500 1768

2,337 22372452

2576

1,504 15811494

1565895 999

988

877

2015 2016 2017 2018

26.0%

12.9%

38.0%

23.1%

16.4%

20.9%

26.0%

36.7%

23.3%

38.1%

15.4%

23.2%

6,4346,090

5,922

15.1%

20.0%

25.4%

39.5%

6,786

20

Revenue Split by Countries

Source: Company Filings

Revenue 100%

Unit：NT$ million

others

Asia

Japan

China

Taiwan1,342 1,595 1,279 1,272 1,310

2,546 2,184 2,314

2,978 3,156

598 837 966

674 857 686

1,053 1,297 1,302

1,288

172

253 234 208

175

2014 2015 2016 2017 2018

3.2%

47.7%

12.8%

11.2%

25.1%

5,343

26.9%

4.3%

36.9%

17.8%

14.1%

5,922

3.8%

38.0%

21.3%

15.9%

21.0%

6,0906,434

3.2%

46.3%

20.2%

10.5%

19.8%

6,786

2.6%

46.5%

19.0%

12.6%

19.3%

211

533

266

358358

688

805

912

1081

1359

13201303

1208

1271

1385

1389

1853

1627

1574

1535

1921

1812

1543

1701

1841

1900

1522

1477

1580

1588

Nan Liu

21

unit：tons

Shipments of disposable surgical gowns fabrics


Nan Liu

unit：NT$ million

Con.revenue Oct Nov Dec Jan

2018/2019 618 619 569 616

YOY 9.20% 6.73% 7.56% 4.80%

Unit: NT$ million

Acc.Sales Jan

2019 616

YOY (%) 4.80%

22

Financial Highlights (by month)

2016.Jan ~ 2019.Jan Consolidated revenue Unit：NT$ million


479

382

575

473

534 522

473 482

544 535

588

502 502

425

576

501535

560519

594

544566 580

530

587

468

589

536

608589

506

554 539

618 619

569

616

1,677 1,904

2,315

2,858

3,519 3,700

4,568

5,343

5,922 6,090

6,434 6,786

18.16%

17.03%

16.42%

12.12%

13.30%

18.34%19.77% 19.45% 20.21% 19.28% 19.13% 18.80%

11.98%10.40% 11.08%

8.58% 8.76% 9.18% 8.68% 8.25% 7.53% 7.89% 7.74% 7.06%

6.18% 6.63%5.34%

3.54% 4.54%

9.16%11.09% 11.20%

12.68%11.39% 11.39% 11.74%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Financial highlights


Consolidated Revenue 100% ( unit：NT$ million)

Ramp-up period for China Factory

GM

OP Margin

OPEX ratio

23

109 100

47

5.2

139

196

377

420

581 582

541

593

6.51%5.29%

2.05%

0.17%

3.96%5.32%

8.25% 7.86% 9.82%

9.56%8.42%

8.73%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Profit (NT$ million)

Net Margin %


Ramp-up period for China Factory

1.Soaring material prices

2.Flooding impact 24

Financial highlights

Selected Cash Flow Statement

Items

NT$ million 2015 2016 2017 2018

Cash from Operating Activities 628 808 767 922

Cash from Investing Activities (363) (254) (1060) (1513)

Cash from Financing Acvitities (68) (285) 745 708 Effect of Exchange Rate changes on cash and

cash equivalents (7) (221) (14) (43)

NET INCREASE IN CASH AND CASH

EQUIVALENTS 190 48 438 74

Capex (358) (222) (1064) (1440)

Depreciation & Amortization 268 298 303 297

Dividend Policy, EPS, ROE, Cash flow

2.We don’t like to take money from shareholders.

( ex. capital increase, CB…)

1.Dividend Policy：around 48~60%

25

2015 2016 2017 2018

EPS 8.01 8.02 7.46 8.16

Dividend CASH 3.9 4.8 4.5 5

STOCK 0 0 0 0

Payout Ratio 48.7% 60% 60.3% 61.2%

2.33 1.86

2.81 3.09

1.03

2.58 2.38

1.45

0.10

2.32

3.19

5.39 5.79

8.01 8.02 7.46

8.16

15.22%

12.28%

17.38%

19.32%

7.06%

15.64%

13.72%

6.12%

0.69%

16.72%

18.26%

23.45%

19.35%

23.20%

21.62%

19.35%

19.96%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

EPS

ROE


Employee

Customer

Shareholder

The Public

Perfect Cycle

Our Management Philosophy

Quality Policy

Environmental Policy

FSC Policy

Health and Safety Policy

Certifications of NANLIU

Wastewater management system RO water reuse

Water RecyclingWet wipes waste recycling

Eco-Friendly

4

Eco-Friendly

After Water Recycle

283540310276

172734

37024 28764 26914

0

100000

200000

300000

400000

2013 2014 2015 2016 2017 2018

A3 Production Line (tons)

27170

170368

94309

36247 38572 35635

0

50000

100000

150000

200000

2013 2014 2015 2016 2017 2018

B3 Production Line (tons)

4

Now

Before

Eco-Friendly

Pinghu Plant, China New HQ / Yanchao plant, Taiwan

Rooftop Solar Panels

31

Corporate Governance

2017 TPEx OTC

TOP 5% 43 34

6%~20% 129 101

21%~35% 129 101

36%~50% 130 102

51%~65% 129 101

66%~80% 129 101

81%~100% 175 135

Total 864 675

20172016

2013.5.7 IPO

2015

36%~50%21%~35%

6%~20%

Source: http://cgc.twse.com.tw/front/evaluationOverview

21%~35%

NanLiu

Corporate Social Responsibility

Setting up Charity Foundations

Nanliu (Taiwan) Charities FoundationNanliu (Pinghu) Charities Foundation

33

Company-organized volunteer

activities for older people

field trip sponsorships for

low-income students Scholarship for low-income

students

Reward Pinghu students with

scholarship

Nan Liu charity Foundation in

Jan 2012

Corporate Social Responsibility

Social assistance for poverty and

unemployment

Thanks for your attention!

Have a great day!!!

Q & A

Documents

Comfortable Satisfactory Joyful · 2019-04-12 · 1 1 1 Berry Global $2.30 bn US 19 19 21 First Quality Nonwovens $300 mn US 2 2 2 Freudenberg $2.10 bn Germany 21 22 22 PF Nonwovens(Pegas)