ECLAT — Investor Presentation 2018

Nov 26, 2018

儒鴻企業股份有限公司 Eclat Textile Co.,Ltd

2018/06/08

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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N.Y. Office Cambodia H.K. Office Vietnam Headquarter Taiwan 2 Offices 11 Garment Factories 2 Fabric Mill Bases

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

The operating revenue for last 4 years

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Fabrics Garments total revenue

NTD: Million

	7,503 8,907 8,301 7,354 3,009 13,340 16,614 16,225 16,878 8,202 20,843 25,521 24,526 24,232 11,211 2014 2015 2016 2017 2018/05	7,503 8,907 8,301 7,354 3,009 13,340 16,614 16,225 16,878 8,202 20,843 25,521 24,526 24,232 11,211 2014 2015 2016 2017 2018/05	7,503 8,907 8,301 7,354 3,009 13,340 16,614 16,225 16,878 8,202 20,843 25,521 24,526 24,232 11,211 2014 2015 2016 2017 2018/05	7,503 8,907 8,301 7,354 3,009 13,340 16,614 16,225 16,878 8,202 20,843 25,521 24,526 24,232 11,211 2014 2015 2016 2017 2018/05	7,503 8,907 8,301 7,354 3,009 13,340 16,614 16,225 16,878 8,202 20,843 25,521 24,526 24,232 11,211 2014 2015 2016 2017 2018/05	7,503 8,907 8,301 7,354 3,009 13,340 16,614 16,225 16,878 8,202 20,843 25,521 24,526 24,232 11,211 2014 2015 2016 2017 2018/05
Year		2014	2015	2016	2017	2018/05*
Fabrics		7,503	8,907	8,301	7,354	3,009
Garments		13,340	16,614	16,225	16,878	8,202
Total Revenue		20,843	25,521	24,526	24,232	11,211
Growth rate		14.89%	22.44%	-3.90%	-1.20%	25.59%

✼ the period is from Jan. to May 2018.

Financial overview

NTD: Million

Year	Fabric dept. sales	Garment dept. sales	Total sales
2017/05*	2,854	6,073	8,927
2018/05*	3,009	8,202	11,211
YoY	5.43%	35.06%	25.59%

• ✼ the period is from Jan. to May.

Financial overview – Consolidated Operating Profit

Consolidated Profit Margin for last 4 years

NT: Million

	2014 2015 2016 2017 2018Q1 26.25% 28.03% 28.58% 27.51% 26.95% 5,471 7,154 7,010 6,666 1,773 5,471 7,154 7,010 6,666 1,773 26.25% 28.03% 28.58% 27.51% 26.95%* 2014 2015 2016 2017 2018Q1 Operating profit(NT:Million) Profit Margin(%)	2014 2015 2016 2017 2018Q1 26.25% 28.03% 28.58% 27.51% 26.95% 5,471 7,154 7,010 6,666 1,773 5,471 7,154 7,010 6,666 1,773 26.25% 28.03% 28.58% 27.51% 26.95%* 2014 2015 2016 2017 2018Q1 Operating profit(NT:Million) Profit Margin(%)	2014 2015 2016 2017 2018Q1 26.25% 28.03% 28.58% 27.51% 26.95% 5,471 7,154 7,010 6,666 1,773 5,471 7,154 7,010 6,666 1,773 26.25% 28.03% 28.58% 27.51% 26.95%* 2014 2015 2016 2017 2018Q1 Operating profit(NT:Million) Profit Margin(%)	2014 2015 2016 2017 2018Q1 26.25% 28.03% 28.58% 27.51% 26.95% 5,471 7,154 7,010 6,666 1,773 5,471 7,154 7,010 6,666 1,773 26.25% 28.03% 28.58% 27.51% 26.95%* 2014 2015 2016 2017 2018Q1 Operating profit(NT:Million) Profit Margin(%)	2014 2015 2016 2017 2018Q1 26.25% 28.03% 28.58% 27.51% 26.95% 5,471 7,154 7,010 6,666 1,773 5,471 7,154 7,010 6,666 1,773 26.25% 28.03% 28.58% 27.51% 26.95%* 2014 2015 2016 2017 2018Q1 Operating profit(NT:Million) Profit Margin(%)	2014 2015 2016 2017 2018Q1 26.25% 28.03% 28.58% 27.51% 26.95% 5,471 7,154 7,010 6,666 1,773 5,471 7,154 7,010 6,666 1,773 26.25% 28.03% 28.58% 27.51% 26.95%* 2014 2015 2016 2017 2018Q1 Operating profit(NT:Million) Profit Margin(%)
Year	2014	2015	2016	2017	2018Q1*
Consolidated Profit Margin	26.25%	28.03%	28.58%	27.51%	26.95%
Consolidated Operating Profit	5,471	7,154	7,010	6,666	1,773

*the period is from 2018/1/1 to 2018/3/31

Financial overview - EPS

Earnings Per Share

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NTD: dollar
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	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	NTD: dollar Earnings Per Share
	11.51 15.99 13.40 11.12 3.25
	2014 2015 2016 2017 2018Q1
Year		2014	2015	2016	2017*	2018Q1**
Net income (NT: Million)		3,004	4,174	3,660	3,052	892
Earnings Per Share (NT: dollar)		11.51	15.99	13.4	11.12	3.25
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	-

• 2017 profit distribution proposal is only approved by BOD and unratified by shareholders' meeting.

**the period is from 2018/1/1 to 2018/3/31

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