Far Eastern New Century Corporation · TWSE:1402
Far Eastern New Century — Investor Presentation (April 2021)
31 slides from Far Eastern New Century's investor presentation, April 2021
Slide 1: Far Eastern New Century
Far Eastern New Century (TWSE: 1402) IR publication – Apr 2021
Slide 2: Only fully integrated vertical solution provider in the world
Far Eastern New Century is the only fully integrated vertical solution provider in the world Empouering Possibilities Fer : Automotive Industries Packaging Hygiene At Far Eastern New Century, we are inspired to empower our customers & partners with unlimited possibilities. When our customers and par
Slide 3: Table of Contents
Table of Contents • Company Highlights • Company Overview • Strategic Summary – Production business strategy – Investment portfolio – Property development plan – Dividend policy – CAPEX • Financials • Recent Achievements & CSR • Appendix 2
Slide 4: Company Highlights (I)
Company Highlights (I) FENC is a world leading integrated polyester producer (incl. virgin & recycled PET), the only supplier providing integrated production and total solution services ranging from upstream feedstock to downstream daily necessities (A constituent of the MSCI ESG Leaders Indexes, FT
Slide 5: Company Highlights (II)
Company Highlights (II) • Consistent dividends payout (refer to page 20) • FENC is a leading polyester recycling company (refer to page 7-12) FENC green business New green trends from governments & brands • Green product is ~30% of polyester & textile BU • Plastic waste import bans in Asia: e.g. Chi
Slide 6: FENC Strategic Summary
FENC Strategic Summary FENC has three key businesses – Production, Investments, and Property Development. Monetization Profit increase driven by of organic growth plus M& A Property Development Business Transformation of Go Production Green Business Local Empower to Strategy Stable Local Possibiliti
Slide 7: Company Overview
Company Overview • Year of establishment: 1954 • Employees: 32,450 • Asset allocation as of Dec 31, 2020 (Total assets: NT$ 617 billion / Book value per share: NT$ 38.1 /share) Business Segments Production Sites Capacity (As of Dec 31 2019) Petrochemical Taiwan & China PTA: 2.75 mm tons/yr Productio
Slide 8: World Leading Integrated Polyester Producer
World Leading Integrated Polyester Producer Single pellet solution: To provide international brand customers total solution with ready to use resin combining virgin & recycled PET. Outsourced Feedstock Production Business (Smart from the Start : R&D Efforts) PET Food Virgin polyester Naphtha PX PTA
Slide 9: Go Green: The R-PET Circular Economy
Go Green: The R-PET Circular Economy Plastic #1 can be returned to original uses R-PET is more eco-friendly • 7 types of plastic: check the number on the back Compared to conventional production of or bottom of a plastic product, and #1(PET) can be virgin PET bottles, producing R-PET returned to its
Slide 10: From Reaction to Creation
(I) : From Reaction to Creation Key milestones of FENC’s R-PET products Creating solutions for clients • Green products certifications received • Adding product traceability: For a premium, on client’s request, FENC can put a tracer in 1 Safe for food packaging use our R-PET products, with a bar cod
Slide 11: Close Customer Partnerships
(II):Close Customer Partnerships 2020: Coca-Cola Bottlers Japan A new joint project for chemical recycling (TopGreen® ChemCycle) 2018: Adidas Performance Awards Global: awards for “Sustainability” & “People” North Asia: award for “Speed” 2018: Coca-Cola Awarded “Supplier Guiding Principles (SGP) Gre
Slide 12: Invest in the Future: Post Consumer Textile Recycling
Invest in the Future: Post Consumer Textile Recycling TopGreen® ChemCycle: FENC’s PET recycling technology breakthrough “chemical recycling” 1 To chemically convert used PET bottles/other polyester wastes (regardless of colors and printing inks) into recycled PTA (rPTA) 2 Using rPTA to produce “Chem
Slide 13: The New Normal post COVID-19 Pandemic
The New Normal post COVID-19 Pandemic • A new business opportunity for hygiene & safety materials to enhance FENC’s product portfolio − Standing on the frontline to protect people’s health & empowering a better and safer life. • FENC® protective life wear to meet new demands from travelers − Meets m
Slide 14: Value of Major Investments - Listed Companies
Value of Major Investments - Listed Companies (NT$ million) Stock code Investees Holdings Book value Market value (2020.12.31) (2021.3.31) 1102 TT Asia Cement 27% 25,689 43,162 1710 TT Oriental Union Chemical 31% 5,236 5,306 2606 TT U Ming Marine 0% - - 2845 TT Far Eastern International Bank 16% 7,2
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 Dec 31, 2020: approximately 200k pings (662k sq meters) After disposing investment properties Gain on disposal of investment properties NT$ 137 BN (P&L) Special reserve Unap
Slide 16: Investment Properties – Major Landholdings of Land
Investment Properties – Major Landholdings of Land Taoyuan City Banqiao Size: 43,070 pings (142,562 sq meters) (Including part of the land area for a new land Taipei Far Eastern Telecom Park development plan) Size: 82,966 pings (274,617 sq meters) A new land development plan Book value: 60~65% of in
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 (in terms of land size) Land development plan: Approximately
Slide 18: Properties Under Development
Properties Under Development Developed area Developing area Developing area No. 3 Commercial office building: TPK-E (2008-2019) (2020-2023) (after 2023) Residential III New Taipei City Library TPKC.D North Park TPKE Rendering • The entire building was rented out. • 13-floor building; land area of 6.
Slide 19: Properties Completed
Properties Completed No. 1 residential product: California Dream No.2 Commercial office building: TPK-C&D • 2 to 4 bedrooms designed for typical TW families • Sales of phase I in 2009 − GFA: 19.3k pings (64k sqm), and around 396 units − ASP at around NT$ 420k/ping (US$ 4k/sqm) • Sales of phase II in
Slide 20: Neili (Taoyuan City) New Land Development Plan
Neili (Taoyuan City) New Land Development Plan Current photo: FENC’s old plants An integrated district tailored for residential zones, a commercial zone, a medical zone and green parks. (Current status: applied for land rezoning approval) Residential zone Yuan Ze University Medical zone Commercial z
Slide 21: Dividends Payout History
Dividends Payout History 2020 Cash Dividend of NT$ 1.35 /share is proposed by the Board of Directors, and the final resolution will be subjected to AGM in June 2021. Dividend policy 20
Slide 22: CAPEX – Excluding Telecom Business
CAPEX – Excluding Telecom Business 3-year Average Depreciation NT$ 8.3 bn Globalization De-Globalization: Local to local *Including the investment in joint operation of CCP JV project. (refer to page 29) • Major CAPEX items: Business Before 2009 2010 ~ 2015 2016 ~ 2020 2021~ • Taiwan: PTA expansion
Slide 23: Key Financial Highlights (IFRS-consolidated Base)
Key Financial Highlights (IFRS-consolidated Base) (NT$ million) 4Q20 4Q19 YoY 2020 2019 2018 Revenues 56,035 100% 59,794 100% -6% 206,769 100% 250,147 100% 228,662 100% Profit from Operations 2,568 5% 2,178 4% 18% 10,002 5% 13,763 6% 14,784 6% Investment Income(Equity method)-Net 1,535 3% 1,495 2% 3
Slide 24: Performance by Business Segments
Performance by Business Segments (NT$ million) 4Q20 4Q19 YoY 2020 2019 2018 Reclassified for Presentation Purposes Gross Revenue Petrochemical 7,398 10,834 -32% 33,387 58,226 47,512 Production Polyester 18,144 19,367 -6% 72,388 86,889 71,643 Business Textile 8,029 9,984 -20% 29,137 39,030 35,906 Tel
Slide 25: Navigating A Green Future
Navigating A Green Future FENC responds to UN SDGs (United Nations’ Sustainable Development Goals) Responds 16 out of the 17 SDGs: FENC is committed and has aligned its sustainability objectives with the UN SDGs. Recycled PET (R-PET) meets 5 SDGs: #12~15, #17. Recent achievements & CSR 24
Slide 26: Recent Achievements & CSR
Recent Achievements & CSR • Sustainability Committee: established in 2020. • TW (S&P) long-term credit rating: TW A • Green financing: 2018: NT$ 3 billion green bond issued 2020: NT$ 3 billion sustainability-linked facilities supported by Crédit Agricole CIB (awarded “ Taiwan Best sustainability
Slide 27: 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 28: Appendix
Appendix Empowering Pessibilities 4 > Bon 44
Slide 29: About FENC
About FENC Far Eastern New Century (“FENC”) is a leading polyester recycling company publicly traded in Taiwan since 1967 with a market capitalization of approximately US$6 billion. It’s a constituent of the MSCI ESG Leaders Indexes and FTSE4Good Emerging Index. FENC is also the flagship company of
Slide 30: Provide Local to Local Services
Provide Local to Local Services • Regionalization with various & diversified production sites and flexible sales & distribution to mitigate the effects of trade barriers. 5 4 2 4 1 3 6 • FENC’s production sites: Taiwan, China, Vietnam, United States, Japan and Malaysia. 1 Taiwan 2 China 3 Vietnam 4
Slide 31: 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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