Century Synthetic Fiber Corp. · HOSE:STK

Century Synthetic Fiber — Investor Presentation (October 2021)

27 slides from Century Synthetic Fiber's investor presentation, October 2021

  1. Slide 1: Century Synthetic Fiber Corp. Management Presentation

    CENTURY SYNTHETIC FIBER CORP. MANAGEMENT PRESENTATION October 2021

  2. Slide 2: Vietnam Textile and Garment Industry: Performance and key drivers

    VIETNAM TEXTILE AND GARMENT INDUSTRY Performance and key drivers VIETNAM'S GARMENT AND TEXTILE EXPORT BY MARKETS 8M2021 CPTPP V I E TNAM TE X TI LE & G ARME NT 15% EU E X P O RTS (US D MI L. ) 10% 39 38 Korea 36 35.27 31.2 8% 29.2 China 4% Thailand 1% Others 2017 2018 2019 2020 9 M2 0 2 1 2021E 12%

  3. Slide 3: Growth potential of Vietnam textile garment industry

    VIETNAM TEXTILE AND GARMENT INDUSTRY Growth potential of VN textile garment industry Source: OTEXA, MOF- JAPAN, EUROSTAT G LO BAL TE X TI LE I MP O RT V O LUME V N‘ S TE X TI LE E X P O RT V O LUME G RO W TH G RO W TH RATE I N 2 0 1 6 - 2 0 1 9 AT 3 - RATE I N 2 0 1 6 -2 0 1 9 AT 3 -MAJ O R MAJ O R

  4. Slide 4: U.S. Apparel Import

    U.S APPAREL IMPORT Growth rate of U.S apparel import volume Growth rate of U.S apparel import value 24.9% 24% 34.9% 31.2% 17% 22.7% 11% 3.1% 8% 1.2% 6% 4% 5.9% 3.5% 2.4% 2.2% -7% -10% -0.2% -4.0% -4.8% -16.4% -23.4% -23.4% 2018/2017 2019/2018 2020/2019 8M2021/8M2020 2018/2017 2019/2018 2020/2019 8M2

  5. Slide 5: EVFTA: Vietnam's growth opportunities in the EU

    EVFTA Vietnam’s growth opportunities in the EU are enormous Apparel sales and textile import value The market share of countries in total EU import of EU (EUR bn) value 2020 171.8 173.2 177.6 178 162 China Others 30.0% 109.4 110.3 112.5 114.8 109 115 28.3% Total value: Vietnam 115 EUR bn. 2015 2016

  6. Slide 6: Vietnam's Share at Major Brands

    VIETNAM’S SHARE AT MAJOR BRANDS Apparel products Footwear 30% 51% 26% 26% 27% 28% 50% 22% 23% 49% 18% 19% 47% 16% 46% 35% 33% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 32% 32% 26% 25% Textile from VN Textile from China 24% 24% 14% 13% 13% 13% Apparel products Footwear from VN 2017 2018 2019

  7. Slide 7: Sportwear Firms Outperformed Their Fashion Peers

    SPORTWEAR FIRMS OUTPERFORMED THEIR FASHION PEERS NIKE PUMA ADIDAS Net profit ($ bn) Revenue ($ bn) Net profit (Euro bn) Revenue (Euro bn) Net profit (Euro bn) Revenue (Euro bn) 5.5 5.23 50 5.04 44.5 4.65 39.1 37.4 6 5.6 36.4 5.3 5.1 4.8 3.6 12.2 5.7 6.56 -0.3 0.6 0.5 0.26 0.3 1.93 4.03 2.54 1.9 0.03

  8. Slide 8: Sportwear Firms Outperformed Their Fashion Peers

    SPORTWEAR FIRMS OUTPERFORMED THEIR FASHION PEERS VF CORP. UNDER ARMOUR Net profit ($ bn) Revenue ($ bn) Net profit ($ bn) Revenue ($ bn) 13.85 5.19 5.27 12.36 4.5 10.49 2.7 5.4 0.66 -0.05 0.09 0.19 1.26 0.68 0.76 2018 2019 2020 6M2021 2018 2019 2020 6M2021 GAP INC. H&M INDITEX Net profit ($ bn) Reve

  9. Slide 9: Brand's Online Sales Growth

    BRAND’S ONLINE SALES GROWTH BRAND'S ONLINE SALES 2020 Digital sales growth % Share of digital sales in revenue % 76% 60% 53% 54% 49% 44% 28% 19.30% 20.20% 17% 15.60% 14.70% 14% Nike Adidas Puma Lululemon Under Uniqlo Inditex H&M Armour

  10. Slide 10: Commitments on Recycled Materials Usage

    COMMITMENTS ON RECYCLED MATERIALS USAGE AN INITIATIVE OF FASHION INDUSTRY TO NET-ZERO GREENHOUSE GAS EMISSIONS NO LATER THAN 2050 IN LINE WITH KEEPING GLOBAL WARMING BELOW 1.5 DEGREES Volume of recycled consumption (mil.tons) Share in total polyester fiber (%) 85 Brands (incl. Adidas, H&M, Inditex,

  11. Slide 11: Commitments on Recycled Materials Usage

    COMMITMENTS ON RECYCLED MATERIALS USAGE commit to use 100% recycled yarn commit to use 50% 2030 recycled yarn commit to use 50% only use recycled 2025 recycled yarn materials commit to use 100% recycled yarn start using recycled yarn 2024 commit to use 100% recycled yarn 20% recycled materials in to

  12. Slide 12: Fiber Industry – Polyester Filament

    FIBER INDUSTRY – POLYESTER FILAMENT SECTOR OUTLOOK Polyester filament is increasingly dominant Source: The Fiber Year Consulting Million tons 2019,2020 The Total Fiber Production 113 113 106 105 102 100 97 93 88 83 83 46 46 40 38 38 37 34 32 29 27 25 27 27 26 26 25 25 25 24 24 23 22 17 17 16 16 15 1

  13. Slide 13: Factors Affecting Garment Order Flows to Vietnam

    FACTORS AFFECTING GARMENT ORDER FLOWS TO VIETNAM Factors Short-term impact Long-term impact Covid preventive ✓ Garment: factories shut measures down ✓ 3-at-site production ✓ Textile mills: capacity ✓ Transportation scaled down restriction ✓ Yarn mills: capacity scaled down VN’s favorable tariff High

  14. Slide 14: Company's 9M2021 Performance Update and Development Directions

    COMPANY’S 9M2021 PERFORMANCE UPDATE AND DEVELOPMENT DIRECTIONS

  15. Slide 15: 9M2021's Performance

    9M2021’S PERFORMANCE Revenue (VND bil.) Net profit (VND bil.) 567.0 - In 9M2021, the Recycle yarn ratio accounted for 510.0 54% on the total sales revenue. 468.0 - Recently, recycled product has been positioning as the Company’s strategic development as thank to its strong growing demand from promin

  16. Slide 16: 9M2021 Performance

    9M2021 PERFORMANCE (VND 9M2021 vs Q3.2021 9M2021 billion) 9M2020 TOTAL REVENUE 468 1,545 +29% NPAT 62.2 203.5 +171%

  17. Slide 17: 9M2021 Sales Mix by Products and Markets

    9M2021 SALES MIX BY PRODUCTS AND MARKETS SALES MIX BY PRODUCTS SALES MIX BY MARKETS 9M2021 9M2021 Domestic and Local export Recycle Direct export 61% 39% 54% Virgin 46% Domestic and Local export Direct export Recycle Virgin

  18. Slide 18: STK's Key Markets

    STK’S KEY MARKETS Sales mix 9M2020 Sales mix 9M2021 Pakistan Thai, Korea, Pakistan 2.7% Japan 1.0% Thai, Korea, US Japan 3.0% 29.0% US 32.6% 4.4% Others Others 3.5% 4.5% Vietnam Vietnam 58.2% 61.1% Sales mix by currency 13% 15% 23% 25% 32% 40% 41% 44% 45% 45% 46% 87% 85% 77% 75% 68% 60% 59% 56% 55%

  19. Slide 19: Q4-2021's Budget Forecast

    Q4-2021’s BUDGET FORECAST (VND 9M2021 2021 2021 billion) Actual Budget Forecast Total 1,545 2,358 2,100 revenue NPAT 203.5 248.4 250 Assumption: Q4-2021 forecast is the remaining of 2021 budget

  20. Slide 20: Century's Recovery Forecast After the Pandemic

    CENTURY’S RECOVERY FORECAST AFTER THE PANDEMIC OVERALL RATE % Capacity % HR fulfillment 95% 100% 83% 90% 71%77% OCT-21 NOV-21 DEC-21 CUCHI PLANT TRANGBANG PLANT % Capacity % HR fulfillment % Capacity % HR fulfillment 100% 100% 100% 92% 90% 80% 90% 90% 90% 65%71% 84% OCT-21 NOV-21 DEC-21 OCT-21 NOV-2

  21. Slide 21: STK's Business Growth Drivers

    STK’S BUSINESS GROWTH DRIVERS DEVELOPMENT PLANS FOR THE PERIOD 2021-2025 Recycled yarn orders Short-term High-value added products in sales mix Development plans Capacity expansion projects (Unitex, Yarn- Knitting-Dyeing alliance) Medium-Long term Integration into the global supply chains of fashion

  22. Slide 22: Renewable Energy Project

    RENEWABLE ENERGY PROJECT ➢ The Solar Energy project is implemented for both Cu Chi and Trang Bang factories with the annual capacity of 10 Mw. ➢ The sustainability-oriented-project aims to cut down electricity costs at STK’s factories. Q3/2021 Q4/2020 Q2/2021 Commence Partially put Fully put into in

  23. Slide 23: Unitex Yarn Factory Investment Project

    UNITEX YARN FACTORY INVESTMENT PROJECT Total capacity: 60,000 tons/annum, (Phase1: 36,000 tons; Phase2: 24,000 tons) Total capex: USD120 mil. (Phase1: USD75 mil., Phase2: USD45 mil.) Financing structure: D/E: 70/30 1st Phase operation 2021 2023 2025 1st Phase 2nd Phase 2nd Phase commence commencemen

  24. Slide 24: Antidumping Investigation Updates

    ANTIDUMPING INVESTIGATION UPDATES 1. Anti-dumping case for polyester filament yarn products made from Vietnam, China, India, Indonesia and Malaysia. ▪ the official tax rate was announced on 13.10.2021 (http://www.trav.gov.vn/data/00195410-a87c-4a80-989d- 83a83a4e020d/userfiles/files/QD%202302.pdf) 2

  25. Slide 25: Prevailing Antidumping Tax Rate – Brief

    PREVAILING ANTIDUMPING TAX RATE – BRIEF Vietnam’s imposing antidumping tariff on China, India, Indonesia and Malaysia ORIGINS PRELIMINARY RATE FINAL % RATE % INDIA 54.9% 54.9% INDONESIA 21.94% 21.94% MALAYSIA 21.23% 21.45% CHINA 3.36%-17.45% 3.36%-17.45%

  26. Slide 26: Prevailing Antidumping Tax Rate – Brief

    PREVAILING ANTIDUMPING TAX RATE – BRIEF US imposing antidumping tariff on Vietnam, Indonesia, Thailand, Malaysia ORIGINS Antidumping tariff % Countervailing tariff % Vietnam ✓ Century 2.58% ✓ Others 22.36% Indonesia 7.47%-26.07% Thailand 14.47%-56.08% Malaysia 8.50% India 10.8%-29% 7%-20.45% China 6

  27. Slide 27: www.theky.vn

    www.theky.vn

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