Far Eastern New Century Corporation · TWSE:1402
Far Eastern New Century — Investor Presentation (March 2020)
26 slides from Far Eastern New Century's investor presentation, March 2020
Slide 1: Far Eastern New Century
Far Eastern New Century (TWSE: 1402) IR publication – Mar 2020
Slide 2: About FENC
About FENC Far Eastern New Century (“FENC”) is a publicly traded company (http://www.fenc.com/?lang=en) in Taiwan with a market capitalization of approximately US$5 billion. It’s a constituent of the MSCI ESG Leaders Indexes and FTSE4Good Emerging Index. FENC is also the flagship company of Far East
Slide 3: Table of Contents
Table of Contents • Company Highlights • Company Overview • Strategic Summary – Production business strategy – Property development plan – Dividend policy – CAPEX • Financials • Recent Achievements & CSR 2
Slide 4: Company Highlights
Company Highlights • A constituent of the MSCI ESG Leaders Indexes, FTSE4Good Emerging Index & TWSE CG 100 Index • Consistent Dividends Payout (refer to page 19) • Management Efforts on the Production Business (refer to page 7-13) • With a fully integrated polyester value chain, the combined operati
Slide 5: Company Overview
Company Overview • Year of establishment: 1954 • Employees: 33,636 • Asset allocation as of Sep 30, 2019 (Total assets: NT$ 553 billion / Book value per share: NT$ 37.9 /share) Business Segments Production Sites Capacity (As of Dec 31 2018) Petrochemical Taiwan & China PTA: 1.99 mm tons/yr Investmen
Slide 6: Strategic Summary
Strategic Summary Monetization of Property Business Transformation of Production Go Business Integrated Stable Go Go Green Strategy Global Investment Income Empowering Sound Financials & Stable Dividend Policy Possibilities Company Overview 5
Slide 7: Value of Major Investments - Listed Companies
Value of Major Investments - Listed Companies (NT$ million) Stock code Investees Holdings Book value Market value (2019.9.30) (2020.2.26) 1102 TT Asia Cement 26% 22,954 38,193 1460 TT Everest Textile 26% 1,171 1,048 1710 TT Oriental Union Chemical 31% 5,675 5,401 2606 TT U Ming Marine 0% - - 2845 TT
Slide 8: A Leading Integrated Polyester Producer
A Leading Integrated Polyester Producer WORLDWIDE ASIA WORLDWIDE WORLDWIDE ASIA PACIFIC TOP 3 TOP 1 TOP 2 TOP 2 TOP 1 PET Resin PET Sheet Nonwoven Polyester Recycled PET Nylon 6,6 Filament Staple Fiber Production business strategy 7
Slide 9: Go Global: From An Asian to A Global Producer
Go Global: From An Asian to A Global Producer • Globalization of the de-globalization era: production site diversification and flexible sales & distribution to mitigate the effects of trade barriers. Exports 5 4 2 4 1 3 6 • FENC’s production sites are in Taiwan, China, Vietnam, United States, Japan
Slide 10: Go Integrated: What Differentiates FENC from Peers?
Go Integrated: What Differentiates FENC from Peers? • 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. • Single pellet solution: To provide international brand c
Slide 11: Go Green: Asia's Largest Recycled PET Producer
Go Green: Asia’s Largest Recycled PET Producer FENC R-PET business FENC R-PET expansion plan • Leading in the R-PET business: FENC has • To expand R-PET capacity through organic invested deeply for over 30 years. growth or M&A. • Key milestones for brand supply: R-PET Annual Capacity (K tons/year) 5
Slide 12: (I): Close Customer Partnerships
(I):Close Customer Partnerships 2017 & 2018: H&M Selected as “Gold Supplier” for two consecutive years 2018: Adidas Performance Awards Global: awards for “Sustainability” & “People” North Asia: award for “Speed” 2018: Coca-Cola Awarded “Supplier Guiding Principles (SGP) Greater China Sustainability
Slide 13: (II): From Reaction to Creation
(II) : From Reaction to Creation • What’s changed? Before: One way communication clients decided materials – Marketing to brands directly: 1) Pull-through strategy: to anticipate future trends by creating Many Many innovative filaments Push fabric clients apparel clients 2) “FEX”: FENC’s B2B total
Slide 14: Invest in the Future: Post Consumer Textile Recycling
Invest in the Future: Post Consumer Textile Recycling • FENC® TopGreen® rTex is a world’s first that will be able to recycle the polyester from all types of post-consumer textiles, including mixed streams. ~ 70% of the ~ 30% of the polyester polyester output output Commercial Run From Lab to Trial R
Slide 15: Land Holdings Owned by FENC
Land Holdings Owned by FENC • Total land holdings: approximately 570k pings (1,887k sq meters) • Investment properties as at Sep 30, 2019: approximately 200k pings (662k sq meters) After disposing investment properties Gain on disposal of investment properties NT$ 127 BN (P&L) Special reserve Unap
Slide 16: Investment Properties – Major Pieces of Land
Investment Properties – Major Pieces of Land Banqiao Size: 82,967 pings (274,621 sq meters) Others Book value: 60~65% of investment properties Size: 11,476 pings (37,986 sq meters) Taipei City (Note a) Size: 1,651 pings (5,465 sq meters) Tau Yuan City Size: 38,407 pings (127,127 sq meters) Yilan (SP
Slide 17: Taipei Far Eastern Telecom Park (Banqiao)
Taipei Far Eastern Telecom Park (Banqiao) 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 Land development plan (in terms of land size): Approximately
Slide 18: Properties Under Development
Properties Under Development Developed area Developing area Developing area Commercial office building: TPK C&D (Completed) (2008-2018) (2019-2022) (after 2022) Residential III New Taipei City Library TPKC.D North Park TPKE • TPK-C (FETone IDC center) TPKA − 11-floor building; GFA of 10.2k pings (33
Slide 19: Properties Completed Before 2018
Properties Completed Before 2018 No. 1 commercial office building: TPK A Tpark Photo in 2018 − 11-floor building, with 2 floor underground parking lot − GFA: 18.7k pings (62k sqm) No. 1 residential product: California Dream TPK A California Dream • 2 to 4 bedrooms designed for typical TW families •
Slide 20: Dividends Payout History
Dividends Payout History Dividend policy 19
Slide 21: CAPEX – Excluding Telecom Business Segment
CAPEX – Excluding Telecom Business Segment • Historically, the maintenance CAPEX CAPEX was covered by the depreciation expense • Re-expansion period starting from 2010 to grow and transform • Major new CAPEX items: From 2010 to 2015 – Production Business: PTA expansion and energy cost saving project
Slide 22: Key Financial Highlights (IFRS-consolidated Base)
Key Financial Highlights (IFRS-consolidated Base) (NT$ million) 3Q19 3Q18 YoY 1-3Q, 19 2018 2017 Revenues 61,710 100% 61,799 100% 0% 190,352 100% 228,662 100% 217,847 100% Profit from Operations 3,861 6% 5,018 8% -23% 11,585 6% 14,784 6% 15,434 7% Investment Income(Equity method)-Net 1,558 2% 1,652
Slide 23: Performance by Business Segments
Performance by Business Segments (NT$ million) 3Q19 3Q18 YoY 1-3Q, 19 2018 2017 Reclassified for Presentation Purposes Gross Revenue Petrochemical 14,045 17,116 -18% 47,392 47,512 30,426 Polyester Production Business 20,728 20,404 2% 67,522 71,643 61,970 Textiles 10,052 9,618 5% 29,046 35,906 34,054
Slide 24: Recent Achievements & CSR
Recent Achievements & CSR • Issued NT$ 3 billion green bond in 2018 for investing in green projects • TW (S&P) long-term credit rating: TW A 23
Slide 25: Q&A
Q&A For further information, please contact IR Team, Finance Department IR email box: IR@fenc.com Company website: www.fenc.com Can also be reached as follows, Carol Wang (886) 2 2733-8000 ext.8537; wang2002@fenc.com Chialing Chao (886) 2 2733-8000 ext.8470; chialing@fenc.com Jarvis Liu (886) 2 2733
Slide 26: Disclaimer
Disclaimer 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 dec
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