ECLAT — Investor Presentation 2018

Nov 26, 2018

儒鴻企業股份有限公司 Eclat Textile Co.,Ltd

2018/11/09

Contents

￭ Company profile

￭ Global strategy

￭ Competitive advantage

￭ Main products

￭ Financial overview ￭ Q&A

Company Profile

Year of Establishment 1977 Capital US$ 91,000,000 ( TWD $ 2,744 M)

Chairman/CEO C.H. Hung Group Employee 1,800 employees (Taiwan) ; 14,500 employees (Overseas) Status IPO in Taiwan Stock Market in 2001 (1476-TW)

Main products • Provide the vertical integration supply chain including knitting, dyeing, finishing, and garment making. • Specialize in functional elastic circular knitting fabrics & garments for performance and sportswear.

Global Strategy

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Cambodia
H.K. Office
Vietnam
Headquarter
Taiwan
1 Office 11 Garment Factories 2 Fabric Mill Bases
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Competitive advantage

• Global strategy to shorten the lead-time and strengthen competition

• 170 R&D Technicians attend to the task to provide more than 3,000 new

fabrics per year

• Quick response to produce 150 pieces of sample per day

• Deeply collaborative development with the first tier international brand

and built up a strategy partner relationship with our customers

• Advantage of production economies of scale and Vertical integration

Vertical Integration

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Yarn Supplier
Eclat Fabrics Co., Ltd.
Taiwan Vietnam
Vietnam (HCM)
Hsi-Chou
Miao-Li
Yarn Dye Piece Dye
Mill Yarn Dye Piece Dye
Mill
Dyeing Knitting
Dyeing Knitting
Hsi-Chou Knitting Dyeing Da-Yuan Knitting Dyeing
Mill Mill
Finishing
Finishing
Final Inspection Garment Final Inspection
China Vietnam(HCM) Vietnam(Honai) Cambodia Lesotho
Eclat Vietnam
Shengzhou Rich Garment TZICC
Colltex / E-Top Eclat Cambodia
Meixina Phoenix Prince Tai-Yuan
TAI-YUAN
production base(outsourcing)
Sector Fabrics Garments
Capacity per month 2,600,000 kg 7,500,000 pieces
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Product-Fabrics

Functional Series

• ‧ Moisture Management

• ‧ Anti-Bacterial Function

• ‧ UV-Cut

• ‧ 3X Dry

• ‧ High Compression

• ‧ Lycra Sport

• ‧ Anti-Pilling

Innovation Series

• ‧ Basic warmth & Cool

• ‧ Safety Control: Reflected Effect

• Innovation

• ‧ Self-cleaning & water repellent Series

• ‧ Well-being series: Sensation / Freshness

• ‧ Stretch Polyester

• ‧ Improved material

Sustainable Series

• ‧ Soybean

• ‧ Sea cell

• ‧ Polypropylene

• ‧ Recycle Fiber

• ‧ Organic Cotton

• ‧ Tencel / Modal Rayon

• ‧ Sorona &Apexa

Outdoor Series

• ‧ Thermal Control: Warm/Cool

• ‧ Anti-snagging

• ‧ Light weight knitting

• ‧ Water proof & Breathable

• ‧ Wind block knitting

• ‧ Knitting lamination

• ‧ UV-Cut

Product-Garments

Performance Sports Series

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Applying organic & Recycle polyester to
create green fashion.

Fashion Sports

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High design capability, especially on yoga
clothes and multi-functional sportswear.

Non-Sew (Welding)

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Produce in Taiwan and Vietnam

Seamless

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Well know-how on seamless garments producing.

Successful Customer Service

 Customized Design Package Service

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Fabric

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Yoga collection Performance Wear

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Successful Customer Service

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Four conditioned laboratories
Certification
Preparing Area
bluesign ISO 14001 NIKE adidas
Data Color
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Financial overview

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NTD: Million
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Year	2014	2015	2016	2017	2018/10*
Fabrics	7,503	8,907	8,301	7,354	6,859
Garments	13,340	16,614	16,225	16,878	15,866
Total Revenue	20,843	25,521	24,526	24,232	22,725
Growth rate	14.89%	22.44%	-3.90%	-1.20%	16.77%

✼ the period is from Jan. to Oct. 2018.

Financial overview

NTD: Million

Year	Fabric dept. sales	Garment dept. sales	Total sales
2017/10*	6,117	13,343	19,460
2018/10*	6,859	15,866	22,725
YoY	12.13%	18.91%	16.77%

• ✼ the period is from Jan. to Oct.

Financial overview – Consolidated Operating Profit

Consolidated Profit Margin for last 4 years

NT: Million

Year		2014	2015	2016	2017	2018Q3*
Consolidated Profit Margin		26.25%	28.03%	28.58%	27.51%	28.34%
Consolidated OperatingProfit		5,471	7,154	7,010	6,666	5,675

*the period is from 2018/1/1 to 2018/9/30

Financial overview - EPS

Earnings Per Share NTD: dollar

	NTD: dollar Earnings Per Share	NTD: dollar Earnings Per Share	NTD: dollar Earnings Per Share	NTD: dollar Earnings Per Share	NTD: dollar Earnings Per Share
	11.51 15.99 13.40 11.12 11.43 2014 2015 2016 2017 2018Q3
Year	2014	2015	2016	2017	2018Q3*
Net income (NT:Million)	3,004	4,174	3,660	3,052	3,137
Earnings Per Share (NT: dollar)	11.51	15.99	13.4	11.12	11.43
Cash dividends (NT dollarper share)	8.0	10.5	10.5	9.5	-
Stock dividends (NT dollarper share)	0.0	0.0	0.2	0.0	-

*the period is from 2018/1/1 to 2018/9/30

Thank you Q&A

ECLAT TEXTILE CO.,LTD. TAIWAN HEAD OFFICE:

NO.28 Wu Chuan Rd., Wu Ku district, New Taipei City, Taiwan, R.O.C. TEL:886-2-2299-6000

FAX:886-2-2299-5483 E-MAIL: service@eclat.com.tw WEBSITE: http://www.eclat.com.tw