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%