EVEREST — Interim / Quarterly Report 2019

Jun 27, 2019

IR Publication - Jun 2019

FE AR EASTERN GROUP

• Company Overview
• Strategic Summary $\bullet$
• Innovative Products
• Global Layout $\bullet$
• Operating Overview

Company Overview

Company	Everest Textile Co., Ltd.
Establishment	1988
Capital	NTD 5.0 billions
Chairman	Mr. Hsi Jar-Yi
General Manager	Mr. Yeh Ching-Lai
Global Staffs	7.300

Specialist

7,300 Woven and Knit Special Material Processed Yarn Multi-function Membrane Coating and Lamination Special Post-finishing Garments

Yarn FTY EVEREST

N

Weaving FTY

Knit FTY

Dyeing FTY

Everest Innovation Transformation Strategy

Product expand to garment from fabrics, and make the growth of fabrics by garment

Valued Innovation	1998~1993	1994~1999	2000~2006	2007~2014	2015~2020
Strategy	thin fabric with high-twisted	ultra-fine suede fabric	outdoor performance fabric	ecological- innovative product	Smart Cloth /Intelligence system /Garment sales
Sustainable operating Strategy	R & D Innovation	Disruptive Innovation	Innovation of Material / Brand Customers Management	horizontal alliances Innovation / Sustainability	Everest 5+5 Global Strategy
$\blacksquare$ fabrics EVEREST	2018 Everest sales % 8% Sales % 90% $\blacksquare$ yarn	garment $(2\%)$	Add garment sales	Increase NC, Haiti and Ethiopia garments	New Blue Ocean sales % Garment 30% $\blacksquare$ Yarn 8 % Fabrics 62%

Strategic Summary

EVEREST^*

Product	1. Expand fashionable valve product markets. Expand markets by functional with advanced fabrics. 2. Transform to industrial fabrics. To increase profits by using functional yarn and developing industrial fabric quickly. 3. Transform and breakout in Global Garments. To raise the amount of sales in fabrics by customized service and innovative design.
Management cost	1. To promote Everest digital transformation and construct digital brain by $\lceil$ industry 4.0 $\lceil$ . And expand to all oversea branches with smart automation and de-skilling in value chain. 2. Minimum cost by proceeding Toyota lean and Amoeba management in all units.
Customers service	1. The market strategy oriented by main customers, plan the best resource to supply comprehensive service. 2. To increase sales by developing small brands and finding potential customers.
Platform synergy	1. To face the market variation, old factories based on skill, sales and culture to promote growth of new factories. 2. Construct resource shared platform by optimizing product chain.

Everest Core Abilities

《Innovation · Sustainability · Intelligence · Lean》

Vertical Integration

• Yarn, weaving, dyeing, knitting, post-finishing, printing, coating and lamination.
• Valued service from yarn to garment.

Innovation Oriented

• . Industry diversified technology leader
• · Industry-leading in intelligence fabrics
• Combine biological technology and intelligence fabrics to create the innovative product, and expanding potential market and industrial fabrics.

Sustainability

• Pass bluesign® environmental certification
• Supply sustainable and innovative solution : non-toxic and ecological innovation product.
• Environmental factory / Ecological community certificate

Smart Everest

• · Intelligent manufacturing service profit model
• Effective and customized of smart produce from demand
• Prompt decision

Sales Market: Global Brand Customers

Global brand customers : including apparel, sports and outdoor market

Brand customers including Nike, Decathlon, Lululemon, The North Face, Patagonia, Under Amour...

Sales Market: Global Brand Customers

• ◆ 2018: Attended 26 exhibitions, more than 16 cities across Europe, Asia and America .
• ◆ 2019: Expected to attend more than 30 exhibitions, fulfill lean power and enhance the key marketing exhibitions

Product Innovations of 2019

Product Innovations of 2019 (1)

Ever Cottony Clima 仿棉感羽絨/防風織物

Ever Ultra Soft Touch Series 超柔觸感新流行系列

Product Innovations of 2019 (2)

Ever Surgical Gown 專業用手術服

Ever Smart Heating Clothing 宏遠溫控發熱衣

Ever FR WorkWear 產業用防火工作服

Accelerate to Rebuild Global Supply Chain by Trade War between U.S. and China

Global Layout

• Integration of global six factories, learn and duplicate quickly. $\blacktriangleright$
• Product Strategy: Develop valve products to promote industrial fabrics $\blacktriangleright$
• Market Strategy: Integration service / expand small customers $\blacktriangleright$
• Cost Strategy: Toyota Way management/Amoeba management/Smart Factory $\blacktriangleright$

Short Chain Revolution Innovate Market Value

ELERRA

New Factories in U.S. and Africa

Region / Productivity			Production Basement	退果/O8 Monthly Productivity
Asia		Tainan, Taiwan	6 Million yards
	Weaving and Dyeing Factory	Shanghai, China	4 Million yards
			Ratchaburi, Thailand	3 Million yards
		Weaving and Dyeing Factory	E North Carolina, U.S.	3.5 Million yards
	U.S. $\mathbf{g}$ Africa	Garment	【☆】 Avasa, Ethiopia	2019 : 35 lines 2020(E): 54 lines
			Caracol, Haiti	2019 : 34 lines 2020 (E): 48 lines
		Weaving and Dyeing Factory (U.S.)	Garment (Ethiopia)	Garment (Haiti)

Weaving and Dyeing Factory / Garment (U.S.)

Garment (Ethiopia)

$\boxed{17}$

Performance: Last Five Years Income Statement

	2014		2015		2016		2017		2018		2019.H1
ITEM	Amount	$\frac{0}{0}$	Amount	$\frac{0}{0}$	Amount	$\frac{0}{0}$	Amount	$\sqrt{2}$	Amount	$\frac{0}{0}$	Amount	$\frac{0}{0}$
Operating Revenue	8,158	100	8,191	100	8,810	100	8,847	100	9,405	100	2,252	100
Gross Profit	1,450	18	1,640	20	1,935	22	1,736	20	1,690	18	406	18
Operating Expense	1,127	14	1,144	14	1,336	15	1,382	16	1,452	15	364	16
Operating Profit	323	$\overline{4}$	496	$6\phantom{1}$	599	$\overline{7}$	354	$\overline{4}$	238	3	42	$\overline{2}$
Non-operating Income & Expense	117	$\mathbf 1$	22	$\overline{0}$	17	$\mathbf 0$	(51)	$-1$	38	$\overline{0}$	3	$\overline{0}$
Profit before Income Tax	440	5	518	$6\phantom{1}$	616	$\overline{7}$	303	3	276	3	45	$\overline{2}$
Tax	66	1	66	1	92	1	88	1	119	$\mathbf 1$	30	1
Profit after Income Tax	374	$\vert 4 \vert$	452	5	524	6	215	$\overline{2}$	157	$\overline{2}$	15	$\mathbf 1$
EPS(NTD)	0.82 $\mathbf{s}$		0.99 \$		1.15 $\boldsymbol{\mathsf{s}}$		0.47 \$		0.33 \$		\$0.03

Performance : Last Five Years Major Financial Indices

單位:新台幣百萬元 Unit: NTD million

Items	2014	2015	2016	2017	2018	2019.Q1
Receivables	964	1,025	1,192	1,376	1,156	1,072
Inventory	3,528	3,568	3,687	4,056	4,504	4,620
Fixed assets	3,273	3,458	3,646	5,378	6,133	6,255
Total assets	8,908	9,646	9,817	11,887	12,488	13,542
Long short terms loans	2,262	2,626	3,095	5,012	2,898	3,332
Capital	4,712	4,712	4,712	4,900	4,998	4,998
Operating revenue	8,158	8,191	8,810	8,847	9,405	2,252
Profit after income tax	374	452	524	215	157	15 1
Profit margin after tax	4.6%	5.5%	5.9%	2.4%	1.7%	0.7%
ROA	4.6%	5.2%	5.8%	2.5%	1.9%	1.2%
ROE	8.1%	9.4%	10.8%	4.4%	3.1%	1.2%
EPS(NTD)	0.82	0.99	1.15	0.47	0.33	0.03
Liabilities ratio	46.3%	50.1%	50.5%	59.2%	58.7%	61.3%
Current ratio	176.7%	154.2%	160.9%	111.2%	98.0%	100.9%
Book value per share(NTD)	10.93	11.00	11.11	10.67	10.94	11.04

Year	2014	2015	2016	2017	2018
Profit (NTD: Millions)	374	452	524	215	157
EPS(NTD)	0.82	0.99	1.15	0.47	0.33
Cash Dividend/per	$0.7\bar{\tau}$	$0.8\bar{\tau}$	$0.4 \pi$	$\sim$ $\sim$	$\sim$ $\sim$
Stock Dividend/per	$\blacksquare$	$\sim$ $\sim$	$0.4$ 元	$0.2$ 元	$0.2$ 元

Corporate Social Responsibility

Disclaimer

This presentation is prepared by Everest Textile 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 decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature, and does not purport to be a complete description of the Company, business, current or historical operating results or its future prospects.

This presentation is provided without any kind of the warranty or representation. either expressed or implied. The Company specifically disclaims all responsibilities in respect of any use or reliance of informations, whether financial or otherwise, contained in this presentation. Neither this presentation nor any of its contents may be reproduced to a third party without the prior written consent of the Company.