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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
Vertical Integration
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
Vertical Integration
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
Source: Company Filings
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
Source: Company Filings
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
Source: Company Filings
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 %
Source: Company Filings
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
Source: Company Filings
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
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