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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
Applications for Nonwoven
3
We focus on
Hygiene Packing
Protection Car Street
Agriculture Construction Filter Industry Filter
Cosmetics Medical
Industry Wipe
Carded Tech
Mechanical
Bonding
Hot Air Bonding
Thermal Bonding
SpunlaceNeedlepunch
Chemical
Bonding
Spunmelt Tech Airlaid TechWetlaid Tech
SpunBond
Production Technology
Meltblown ElectrostaticSpinning
Spunlace Fabrics4Woven Fabrics
Warp
Weft
Thermal Bond
Japan Korea Taiwan China India Indonesia Total
20 19 4 135 - - 178.8
39 21 13 200 - 10 265.0
75 85 38 848 164 56 1,266.0
51 9 80 850 33 6 924.0
99 90 55 1,779 257 28 2,200.0
23 3 4 107 21 0 158.5
35 0 1 41 - - 77.4
343 227 197 3,960 475 100 5,070
Chemicalbonded
Wetlaid
Total
Thermalbonded
Neddlepunched
Spulaced
Spunbonded/MB
Other Drylaid
Source:ANFA 2018 ( Nonwovens_Production_in_Asia_2018.pdf ) 5
Industry Overview (Asia)
2020 Nanliu Thermalbondcapacity (18,600tons/Y)
2020:Nanliu spunlacedcapacity (70,000 tons/Y)
https://www.nonwovens-industry.com/heaps/view/4963/1/296300 6
Nonwovens Industry International Top 40 Companies
2016 2017 2018 company Sales$ country 2016 2017 2018 company Sales$ country
1 1 1 Berry Global $2.70 bn US 20 20 21 Fibertex Personal CareFirst Quality Nonwovens$329 mn US
2 2 2 Freudenberg $2.10 bn Germany 24 23 22 Nan Liu Enterprise $238 mn Taiwan
4 4 3 Ahlstrom $1.50 bn Finland 27 25 23 Fibertex Nonwovens $234mn Denmark
3 3 4 Kimberly-Clark $1.30 bn US 25 27 24 Asahi Kasei $224mn Japan
5 5 5 DuPont $1.0 bn US 24 26 25 Mitsui Chemicals $218 mn Japan
7 6 6 Fitesa $988 mn US 26 23 26 Gulsan Groups $215mn Turkey
22 22 7 PF Nonwovens(Pegas) $765 mn Czech 32 29 27 Union Industries $192 mn Italy
6 7 8 Johns Manville $725 mn US 31 28 28 Hassan Group $184 mn Turkey
8 8 9 Glatfelter $693mn US 35 33 29 Spuntech $183 mn Israel
12 9 10 Lydall $654 mn US 28 30 30 Xingtai Nonwovens $175 mn China
9 10 11 Suominen $509 mn Finland 34 35 31 Dalian RuiguangPrecision Custom Coatings$175 mn China
10 11 12 TWE Group $450 mn Germany 36 36 32 Toyobo $146 mn Japan
11 12 13 Low & Bonar $407 mn Netherlands 33 34 33 KNH Enterprises $145 mn Taiwan
16 16 14 Hollingsworth & Vose $395 mn US 30 32 34 Tenowo $138 mn Germany
14 13 15 Zhejiang Kingsafe $385 mn China - - 35 Halyard Health $135 mn US
19 14 16 Sandler Group $380 mn Germany 38 37 36 Mogual Spunbond Nonwovens $133 mn Turkey
18 17 17 Avgol Nonwovens $367 mn Israel 39 39 37 Shalag Nonwovens $125 mn Israel
17 18 18 Toray Advanced Materials $375 mn Korea 37 39 37 Saudi German Nonwovens $125 mn Saudi Arabia
15 19 19 Jacob Holm $360mn Switzerland 40 38 39 Unitika $108 mn Japan
13 15 20 Georgia-Pacific $350 mn US - - 40 Kuraray $98 mn Japan
Nonwovens Industry International Top 40 Companies
Establishment: 1978
Capital: NT$726mn
Total employee:
1059 (as of Mar 31, 2020)
TW:412;China:647
Headquarters: Kaohsiung, Taiwan
Founders:
Company Profile
7
Chairman
MR. HUANG,CHIN-SAN
CEO
MR. HUANG,HUO-CUN
Spunlaced Fabrics
Disposable surgical gowns
Fabrics
Baby Wet Wipes
Cosmetics
( face masks…)
Air Through &
Thermalbond Fabrics
Vertical Integration
Fabrics
Secondary Processing
Finish Products
PPviscose
pet
Branded distributor Branded distributor
Products:
Revenue Split by Products
Source: Company Filings 8
Unit:NT$ million
Disposable
Surgical gowns
Fabrics
Spunlance
Nonwoven Fabrics
Air Through &
Thermal Bond
Nonwoven Fabrics
Wet wipes &
Cosmetics
1273 1500 1768 1796
22372452
2576 2201
15811494
15651752
999988
877798
2016 2017 2018 2019
26.0%
12.9%
38.0%
23.1%
16.4%
20.9%
26.0%
36.7%
23.3%
38.1%
15.4%
23.2%
6,434
6,090
6,786
27.4%
33.6%
12.2%
26.8%
6,547
9
Company Location
Qiaotou plantYanchao plant
Yanchao New plant (Headquarters) TAIWAN
10
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
INDIA – Ahmedabad Plant
INDIA plant is under construction& estimated to start production by early 2020Sanand-II Industrial estate,
Ahmedabad, Gujarat
Area – 42,000 sq.m
Feb,2019
11
12
Revenue Split by Countries
Source: Company Filings
Revenue 100%
Unit:NT$ million
others
Asia
Japan
China
Taiwan1,279 1,272 1,310 1,241
2,314 2,978 3,156 2,986
966
674 857
901
1,297 1,302
1,288 1,209
234 208
175 210
2016 2017 2018 2019
3.8%
38.0%
21.3%
15.9%
21.0%
3.2%
46.3%
20.2%
10.5%
19.8%
2.6%
46.5%
19.0%
12.6%
19.3%
3.2%
45.6%
18.5%
13.7%
19.0%
13
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
(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)
14
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
15
(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
16
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
rural urban
Unit: %
2002 201820121990
74
26
61
39 4753
40.42
59.58
Key growth drivers
2018
15.23 mn
2018
28,228 RMB
17
2015.01.22
2016.10.15
2016.10.15
Taiwan new factory is READY - 2019.1Q
An estimated NT$3bn will be invested over time,
Creating 100 employment opportunities
(I) Yanchao New Plant
2019.02.01
New plant (Headquarter)
18
2019.2.1
Pure Cotton
Spunlace FabricsHigh Speed Spunlace
Fabrics
Office
Wet wipes
Facial mask
New plant (Headquarter)
Dividend Policy, EPS, ROE, Cash flow
2.We don’t like to take money from shareholders.
( ex. capital increase, CB…)
1.Dividend Policy:around 48~60%
19
2016 2017 2018 2019
EPS 8.02 7.46 8.16 7.25
Dividend CASH 4.8 4.5 5 4.5
STOCK 0 0 0 0
Payout Ratio 60% 60.3% 61.2% 62.1%
EPS
ROE
Source: Company Filings
2.33 1.86
2.81 3.09
1.03
2.58 2.38
1.45
0.10
2.32
3.19
5.39 5.79
8.01 8.02 7.46 8.16
7.25
15.22%
12.28%
17.38%
19.32%
7.06%
15.64%
13.72%
6.12%
0.69%
16.72%
18.26%
23.45%
19.35%
23.20%
21.62%
19.35% 19.96%
17.05%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Selected Cash Flow Statement Items
NT$ million 2017 2018 2019
Cash from Operating Activities 767 922 790
Cash from Investing Activities (1060) (1513) (995)
Cash from Financing Acvitities 745 708 527 Effect of Exchange Rate changes on cash and cash
equivalents (14) (43) (101)
NET INCREASE IN CASH AND CASH
EQUIVALENTS 438 74 221
Capex (1064) (1440) (957)
Depreciation & Amortization 303 297 255
Financial highlights
Source: Company Filings
Consolidated Revenue 100% ( unit:NT$ million)
Ramp-up period for China Factory
GM
OP Margin
OPEX ratio
20
1,677 1,904
2,315
2,858
3,519 3,700
4,568
5,343
5,922 6,090
6,434 6,786
6,547
18.16%
17.03%
16.42%
12.12%
13.30%
18.34%19.77% 19.45% 20.21% 19.28% 19.13% 18.80% 18.90%
11.98%10.40% 11.08%
8.58% 8.76% 9.18% 8.68% 8.25% 7.53% 7.89% 7.74% 7.06% 7.82%
6.18% 6.63%5.34%
3.54% 4.54%
9.16%11.09% 11.20%
12.68%11.39% 11.39% 11.74% 11.08%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Company Filings
Ramp-up period for China Factory
1.Soaring material prices
2.Flooding impact 21
Financial highlights
109 100
47
5.2
139
196
377
420
581 582
541
592
526
6.51%5.29%
2.05%0.17%
3.96%5.32%
8.25% 7.86% 9.82%9.56%
8.42%
8.73%
8.11%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net Profit (NT$ million)
Net Margin %
Nan Liu
22
Future Growth
2019 2020 2021 2022 2023 2024
Source: Company Filings
Taiwan New factory
India factory
Wastewater management system RO water reuse
Water RecyclingWet wipes waste recycling
Eco-Friendly
4
Eco-Friendly
After Water Recycle
283540310276
172734
37024 28764 26914 31702
0
100000
200000
300000
400000
2013 2014 2015 2016 2017 2018 2019
A3 Production Line (tons)
27170
170368
94309
36247 38572 35635 33180
0
50000
100000
150000
200000
2013 2014 2015 2016 2017 2018 2019
B3 Production Line (tons)
4
Now
Before
Eco-Friendly
Pinghu Plant, China New HQ / Yanchao plant, Taiwan
Rooftop Solar Panels
2018 TPEx OTC
TOP 5% 43 34
6%~20% 131 103
21%~35% 131 103
36%~50% 129 103
51%~65% 130 105
66%~80% 130 101
81%~100% 174 137
Total 868 686
26
Corporate Governance
20172016
2013.5.7 IPO
2015
36%~50%21%~35%
6%~20%
Source: http://cgc.twse.com.tw/front/evaluationOverview
21%~35%
NanLiu
2018
6%~20%
Corporate Social Responsibility
Setting up Charity Foundations
Nanliu (Taiwan) Charities FoundationNanliu (Pinghu) Charities Foundation
28
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
211
533
266
358358
688
805
912
1081
13591320
1303
1208
1271
13851389
1853
16271574
1535
1921
1812
1543
1701
18411900
1522
1477
15801588
1410
1218
1482
1517
1133
Nan Liu
30
unit:tons
Shipments of disposable surgical gowns fabrics
Source: Company Filings
Nan Liu
31
Disposable
Surgical gowns
Fabrics
Spunlance
Nonwoven Fabrics
Air Through &
Thermal Bond
Nonwoven Fabrics
Wet wipes &
Cosmetics
Source: Company Filings
unit:million NT$
Revenue Split by Products
435 432
484 544
486 435
203 157
2019.Q1 2020.Q1
12.6%
27.1%
30.2%
30.1%
27.6%
10.0%
34.7%
27.7%
1,5681,608
32
Revenue Split by Countries
Source: Company Filings
Revenue 100%
Unit:NT$ million
others
Asia
Japan
China
Taiwan287 351
720 617
245 193
302 329
54 78
2019.Q1 2020.Q1
1,6081,568
3.4%
44.8%
18.8%
15.2%
17.8%
5.0%
39.3%
21.0%
12.3%
22.4%
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