far eastern new century - investor.fenc.cominvestor.fenc.com/upload/ir/ir_20180108002.pdf8 invest in...
Post on 11-May-2018
217 Views
Preview:
TRANSCRIPT
1
• Year of establishment: 1954
• Asset allocation as of Sep 30, 2017 (Total assets: NT$ 506 billion / Book value per share: NT$ 35.9 /share)
Business Segments Production Sites Current Capacity
Pro
du
cti
on
Petrochemical Taiwan & Shanghai PTA: 1.58 mm tons/yr
Polyester
Taiwan,
Shanghai,
Suzhou,
Wuhan,
Japan,
Malaysia
Polymer: 1.97 mm tons/yr
PET: 1.36 mm tons/yr
PSF: 490K tons/yr
Polyester Filament: 121K tons/yr
Others
Nylon 6,6 filaments: 21K tons/yr
PET Sheets: 131K tons/yr
PET films: 20K tons/yr
Textiles
Taiwan,
Suzhou,
Wuxi,
Vietnam
Yarn: 513K spindles/yr
Knitted Fabrics: 25K tons/yr
Industrial Fabrics: 21K tons/yr
Industrial Yarn: 102K tons/yr
Apparels: 5.2 mm dozens/yr
Property Various locations in
Northern Taiwan
Total size: 200k pings
(662k sq meters)
Telecom
(Far EasTone)
Integrated service
provider - mobile,
fixed line, ISP, etc.
# of subs: 7.2 mm
Investment &
Others Cement, retail, financial services…etc.
Company Overview
Company Overview
Production
54%
Property
3%
Investment
& Others (Including
Telecom)
43%
• Revenue breakdown in 1-3Q, 2017
Production
31%
Property
30%
Investment
& Others (Including
Telecom)
39%
2
Strategy Go
Green
Value
Added
Products
Total Solution (Products + Services)
Invest in the
Future
Strategic Summary
Stable
Investment
Income
Transformation
of
Production
Business
Monetization
of
Property
Business
Sound Financials & Stable Dividend Policy
We are growing and transforming in a systematic way
In 2016, 25% of the Production Business
revenues is derived from
recycled/bio/energy-saving products.
Company Overview
3
Value of Major Investments - Listed Companies
(NT$ million)
Note1: Beginning from 18 August 2017, Far Eastern International Bank was re-classified under the equity investment method.
Note 2: 5,353 million shares of FENC common stock were issued and outstanding as of 30 Sep 2017.
Company Overview
Stock code Investees Holdings Book value
(2017.9.30)
Market value
(2017.12.28)
1102 TT Asia Cement 26% 19,995 23,954
1460 TT Everest Textile 26% 1,130 1,750
1710 TT Oriental Union Chemical 31% 5,926 8,559
2606 TT U Ming Marine 0% - -
2845 TT Far Eastern International Bank 16% 5,081 4,954
2903 TT Far Eastern Department Stores 24% 7,032 4,979
4904 TT Far EasTone 38% 26,991 91,446
Total 66,154 135,642
4
A Leading Integrated Polyester Producer
ASIA TOP 1
PET Sheet
WORLDWIDE TOP 6
PET Resin
WORLDWIDE TOP 2
Nonwoven
Polyester Staple Fiber
ASIA PACIFIC TOP 1
Nylon 6,6 Filament
WORLDWIDE TOP 1
Recycled-PET
Production business strategy
5
What Differentiates Us from Our Peers?
• Vertical integration: the only producer manufacturing from raw material PTA to providing total solution
services to brand clients. Also speeding up the Vietnam expansion project to meet client demand for
future growth.
• Award winning innovations: modifying polymer “gene” (technology built in) by R&D team and thus
producing textiles difficult for peers to clone. Smart, functional & sustainable textiles.
• Close customer partnerships: chosen as their strategic partners by well-known brands.
Note: • 1 Polyester = 0.83 PTA + 0.33 MEG
• 1 PTA = 0.67 PX + 0.03 acetic acid
• 1 MEG = 0.6 Ethylene + oxygen + water
Production Business (Smart from the Start : R&D Efforts) Outsourced Feedstock
Production business strategy
Green products please refer to page 11
Natural Gas
Food Packaging
Non-food Packaging
Apparel
PTA
MEG
PX
Ethylene
Naphtha
Nylon 6,6 Filament
Nylon 6,6 Flake
Polyester Staple Fiber Non-
Apparel Polyester Filament
• Germanium (鍺觸媒) &
titanium catalyst (鈦觸媒)
PET to replace antimony
catalyst (銻觸媒) PET
• PET heat shrinkable films
• A-PET (Amorphous) sheets
• Nonwoven
−Low melt fibers
−Hygiene
• Industrial use
−Airbag / safety belt
−Tire cord / conveyor belt
PET Resin
Polyester Polymer
TopDry®
7
Key barriers : 1)securing feedstock supply & 2)acquiring quality approvals (i.e. FDA and clients’ approval)
• Shirts : FENC announced the 1st
100% bio-polyester shirt made
entirely from plants in April 2016
• Match with “Local-to-Local” distribution system of
international beverage producers
• Production sites:
Taiwan Japan China/ASEAN Europe/US
• JV with Ishizuka Glass Co., Ltd. in Japan: − Annual capacity: 35k tons
− Commercial run in 2015
• FENC’s recycled-PET capacity expansion plan: − 20K tons in 2014 90K tons in 2015 140K tons in 2019
Go Green: Recycled-PET & Bio-based PET
Phase I: Worldwide Production Base Phase II: 100% Bio-PET Products
Production business strategy
0.33 Bio-PET 1st generation: food crops (ex: corn, sugar cane, etc.)
2nd generation: agriculture waste (ex: corn stalk, wheat straw, rice straw, etc.)
0.83
Phase I:
Phase II:
Recycled
bricks R-PET
Bio-PTA
Bio-MEG
• Bottles: FENC co-developed with
Coca-Cola the 1st bio-PET bottle
and announced in 2014
8
Invest in the Future: Smart Textiles
• A revolutionary smart garment system that seamlessly connects the
textile and digital worlds.
- Efficient turn-key solution in terms of both cost efficiency and
manufacturing process
- Highly durable materials that can be used in diverse sports, fitness and
wellness scenarios
- Advanced conductive coating film that allows highly accurate bio-sensing
analytics
- Simple and commercial-ready system that integrates textile
manufacturing, electronic devices and application/software development
- Non-allergenic
Production business strategy
• DynaFeedTM : Smart Clothes (the Internet of Textile)
The ISPO AWARD jury’s description:
“A great new component that does not inhibit the
functionality of the fabric while collecting and
transporting vital information”.
FENC® DynaFeedTM user-friendly interface provides body vital information for
user, enhancing training quality and efficacy.
9
New Book Value (Market value using
“fair value model” under
TW IFRS on Sep 30, 2017)
• Total land holdings: approximately 570k pings (1,887k sq meters)
• Investment properties as at Sep 30, 2017: approximately 200k pings (662k sq meters)
Land Holdings Owned by FENC
NT$ 35.3 BN
NT$ 124 BN
Old Book Value Market Value (After future
land development)
Property development plan
After disposing
investment properties
Gain on disposal of
investment properties
(P&L)
Special reserve
Unappropriated earnings
(Balance sheet)
Total distributable
income
10
Banqiao Size: 84,421 pings (279,434 sq meters)
Book value: ~65% of investment properties
Investment Properties – Major Pieces of Land
a) Land holdings in Taipei City include self-use and investment properties
b) 1 ping = 3.31 sq m = 35.58 sq ft
Taipei City (Note a)
Size: 1,651 pings (5,465 sq meters)
Yilan (SPA resort) Size: 32,035 pings (106,036 sq meters)
Phase I plan: villa concept, around 200 rooms
Hualien Size: 9,446 pings (31,266 sq meters)
New Taipei City & Keelung City Size: 9,091 pings (30,091 sq meters)
Property development plan
Taishan Size: 16,829 pings (55,704 sq meters)
Tau Yuan County Size: 38,804 pings (128,441 sq meters)
11
Developed area
(2008-2016)
Developing area
(2017-2020)
Developing area
(after 2020)
• Target tenants for commercial office buildings
A smart green campus, with sole property ownership, integrated with residential zones (for sale),
commercial offices (for lease), a medical center, a college, and a hypermarket in the neighborhood
Taipei Far Eastern Telecom Park (Banqiao)
Retail
Medical Center
Oriental Institute
of Technology
Residential III
Residential II
TPK-B
TPK-C
TPK-D
Residential IV
Property development plan
Car Park
South
park
TPKC.D
North
Park
New Taipei City
Library
Residential
III
TPKA
Residential
II
Taiwan
Power
13
Key Financial Highlights (IFRS-consolidated Base)
(1) EPS is calculated using adjusted outstanding shares (deducting treasury stock). Note:
(NT$ million) YoY
Revenues 56,374 100% 52,890 100% 7% 159,664 100% 215,856 100% 217,948 100%
Profit from Operations 5,462 10% 4,131 8% 32% 12,060 8% 14,537 7% 14,514 7%
1,061 2% 160 0% 562% 2,517 2% 1,874 1% 2,722 1%
Interest Expenses-Net (503) -1% (522) -1% n.a. (1,590) -1% (2,046) -1% (1,966) -1%
Gain on revaluation of investment property 200 0% 615 1% -68% 1,054 1% 3,269 2% 4,659 2%
Gain (Loss) on disposal of investment property - - - - n.a. - - 313 0% 942 0%
Others (16) 0% (488) -1% n.a. (418) 0% (1,987) -1% (1,168) -1%
Consolidated Income before Tax 6,203 11% 3,896 7% 59% 13,623 9% 15,960 7% 19,701 9%
Tax Expenses 845 1% 746 1% 13% 2,304 1% 3,257 1% 5,014 2%
Consolidated Net Income 5,359 10% 3,151 6% 70% 11,320 8% 12,703 6% 14,686 7%
Attributable to:
Shareholders of the Company 3,600 6% 1,329 3% 171% 6,434 4% 6,308 3% 8,035 4%
Non-Controlling Interests 1,758 3% 1,822 3% -4% 4,886 3% 6,395 3% 6,652 3%
EPS (NT$)(1) 0.72 0.27 1.29 1.26 1.61
Depreciation & Amortization 5,207 9% 4,895 9% 6% 15,281 10% 19,338 9% 18,265 8%
Total Assets 505,940 100% 513,460 100% 518,765 100%
Total Debt 254,591 50% 261,268 51% 258,368 50%
Net Interest-bearing Debt 162,388 32% 160,148 31% 152,787 29%
Total Equity 251,349 50% 252,193 49% 260,397 50%
192,008 38% 190,886 37% 197,252 38%
Non-Controlling Interests 59,341 12% 61,306 12% 63,145 12%
Book Value Per Share 35.9 35.7 36.8
1-3Q, 17 2016 2015
Investment Income(Equity method)-Net
Total Shareholders' Equity of
Parent Company
3Q17 3Q16
14
Performance by Business Segments
Production Business
Production Business
Note: (1) Investment & Others segment includes investment income (loss) from equity-method investees, i.e. ACC, FEDS, and share disposal gain (loss), etc.
(NT$ million) 3Q17 3Q16 YoY 1-3Q, 17 2016 2015
Reclassified for Presentation Purposes
Gross Revenue
Petrochemical 7,415 7,012 6% 22,169 31,401 29,976
Polyester 16,487 14,428 14% 46,221 59,463 60,476
Textile 9,089 8,903 2% 25,337 33,946 32,260
Telecom 22,865 23,319 -2% 67,281 94,344 97,293
Property 1,427 1,971 -28% 4,951 8,896 6,644
Investment & Others (1) 3,944 1,427 176% 8,574 6,935 8,783
Subtotal 61,227 57,059 7% 174,534 234,986 235,432
Inter-company Sales 3,734 3,995 -7% 12,098 17,053 14,532
Revenue-net 57,494 53,065 8% 162,435 217,932 220,900
Profit from Operations
Petrochemical (62) (518) n.a. (1,120) (1,275) (1,647)
Polyester 296 55 435% 423 693 897
Textile 369 344 7% 846 1,178 673
Telecom 3,735 4,260 -12% 11,301 15,024 15,393
Property 137 366 -63% 517 1,009 692
Investment & Others (1) 2,029 (364) n.a. 2,777 158 1,100
Subtotal 6,504 4,144 57% 14,743 16,787 17,108
Other Adjustments 78 162 -52% 89 (174) 358
Reclassified Profit from Operations 6,581 4,306 53% 14,832 16,613 17,465
For Reconciliation Purposes
-1,061 160 562% 2,517 1,874 2,722
- Dividend Income 59 15 294% 254 203 230
Profit from Operations 5,462 4,131 32% 12,060 14,537 14,514
Investment Income from
Equity-method Investees, net
15
• The Chairman won the “Top 50 Taiwan CEOs 2016” hosted by Harvard Business Review
(哈佛商業評論-2016年度台灣執行長50強)
• Ranked “One of the Most Admired Companies in Taiwan” 2003 - 2012 by CommonWealth
Magazine (天下雜誌最佳聲望標竿企業)
Management
&
Leadership
Recent Achievements & CSR
• TW (S&P) long-term credit rating: TW A+
• Board independence: Three independent directors appointed in 2012
• Remuneration & audit committee: Established in 2011 and 2015, separately
• A constituent of the MSCI ESG Leaders Indexes (MSCI ESG Rating – Industrial
Conglomerates: A), FTSE4Good Emerging Index & TWSE CG 100 Index
• FENC has reached to Management Level in the Carbon Disclosure Program (CDP).
• CSR report: prepared according to GRI G4 Comprehensive option and the AA 1000 standards and awarded “Best Report of the Year” by
Taiwan Corporate Sustainability Award in 2017
• CSR achievements: - Awarded “TOP50 Sustainable Corporates”, “Sustainable Water Management Awards”, “Social Inclusion Award”, “Growth through Innovation
Awards” and “Circular Economy Leadership Awards” by Taiwan Corporate Sustainability Award in 2017
- Ranked “One of the Top 50 Large Enterprises of Excellence in Corporate Social Responsibility” by CommonWealth Magazine in 2017
- Awarded “Excellence Award in CSR Annual Survey Award - Traditional Industries Group by Global Views Monthly in 2017
Environmental,
Social
&
Governance
• Selected “the 2018/19 TOP10” by ISPO (TopDry®, TopDry® Non-woven & Wind Guard 3D )
• Awarded “the 2016/17 Gold Award” by ISPO in Munich (Dynafeed® )
• Awarded “the 2016 Sustainability Winner” by Adidas (ocean plastic recycled project)
• Awarded “the 2014 Consumer Decides Award” by Nike
• Awarded “the 2013 Apparel Fabric Supplier of the Year” by Puma
• Awarded “2013 Supplier of the Year” by Coca-Cola
• Awarded “2013 Supplier Innovation Award” by Nike
Client
Relationship
&
Green
16
This presentation is prepared by Far Eastern New Century Corporation (the “Company”)
and is solely for the purpose of corporate communication and general reference only. The
presentation is not intended as an offer to sell, or to solicit an offer to buy or form any
basis of investment decision for any class of securities of the Company in any
jurisdiction. All such information should not be used or relied on without professional
advice. The presentation is a brief summary in nature and does not purport to be a
complete description of the Company, its business, its current or historical operating
results or its future prospects.
This presentation is provided without any warranty or representation of any kind, either
expressed or implied. The Company specifically disclaims all responsibilities in respect of
any use or reliance of any information, whether financial or otherwise, contained in this
presentation. Neither this presentation nor any of its contents may be reproduced to a
third party without the prior written consent of the Company.
Disclaimer
top related