LEALEA - Investor Presentation 2018

$\Fs1\11f-hp5510\商品企劃\螢光彩夏±2.5°C\pic\廠區鳥瞰調色02.jpg$

$D:\DATA\Desktop\LEALEA GROUP.png$

$D:\DATA\Desktop\LEALEAlogo-2.png$
Code.1444
2018 CONFERENCE

Investor Conference
DISCLAIMER:
This PPT encloses the info. of the company’s internal and external data and includes the business performance, financial statement, and sales development.
Lealea doesn’t enclose any financial prediction. There might be variation or difference from actual situation if Q&A involves any predictive sales, industrial or financial matters. This is subject to the market demand & supply, price variation, competition, international economy, exchange rate or downstream/upperstream…etc.
Company prospection in PPT is based on Lealea’s point of view, and it may vary by time. Lealea is not responsible for any instant update nor reminder.

$D:\DATA\Desktop\未命名-3.jpg$
Agenda

一. Company Profile
二. Capacity?三. Core Value Product
四. Performance?五. Industrial Trend(SWOT)?六. Strategy from Lealea

$D:\DATA\Desktop\LIBOLON\公司LOGO\LIBOLON.png$

Company Profile

$D:\DATA\Desktop\2017法人\s_1447658555.jpg$

Established Year: : 1979

Capital: NT95.73billion

Chairman : James Kuo

Employees : 1116

I.P.O: 1990 , TWSE (Code.1444)

$D:\DATA\Desktop\力麗力鵬年代-01.png$

$D:\DATA\Desktop\2017法人\LL.png$
LeaLea Enterprise Co., Ltd. was founded.
Business philosophy
Diligence/
Integrity/
Initiative/
Innovation
Chungli plant was established.
LeaLea Enterprise was registered on the Taiwan
Stock Exchange (IPO)
Indonesia plant was established.
Changhua plant was established.
Lea Jie Enterprise Co., Ltd. was founded.
LeaLea Changhua plant produced POY.
LIBOLON is the first manufacturer in Asia
received the GRS certification.
Joined the GoHiking channel enterprise.
Li Peng and LeaLea Enterprises established the LIBOLON brand.
LIBOLON is the first manufacturer in Taiwan
received the Ecoflying system

Production Capabilities
1.Polyester Polymerization & Spinning Plant:
CP process → CP1: 8000 T/Month
CP2: 8000 T/Month
BP process → BP1: 280 T/Month
BP2: 280 T/Month
BP3: 1200 T/Month
SSP(Bottle grade) 6000 T/Month
BR(Bright chip) 2000 T/Month
TP(Recycle chip) 900 T/Month
PET Spinning Plant → direct spinning: 5000 T/Month
chip spinning: 2600 T/Month

$D:\DATA\Desktop\2017法人\s_1447658955.jpg$

$C:\Users\2200\Dropbox\Lealea\exhibition\RePET yarn.tif$

Production Capabilities
2.Changhua DTY Plant Factory: 8300 T/Month
3. Chung Li DTY Plant Factory : 1200 T/Month
4.OEM DTY: 250 T/Month

$D:\DATA\Desktop\2017法人\s_1447658621.jpg$

Performance
| Performance of LeaLea Enterprise Unit: thousand | | | | |
| --- | --- | --- | --- | --- |
| | 2015 | 2016 | 2017 | 2018(Jan to Sep) |
| Gross Sales | 10,408,732 | 9,612,742 | 11,104,529 | 9,393,299 |
| Gross Profit | 820,613 | 695,180 | 816,631 | 774,444 |
| Operating Expenses | 507,582 | 574,898 | 715,115 | 533,363 |
| Operating Income | 313,031 | 120,282 | 101,516 | 241,335 |
| Total Non-Op.Income | 151,196 | (33,846) | (119,494) | 273,622 |
| Pre-Tax Income | 464,227 | 86,436 | (17,978) | 514,957 |
| Income Tax Expense | 55,367 | 16,889 | 30,010 | 91,887 |
| Net Income | 408,860 | 69,547 | (47,988) | 423,070 |
| Earning Per Share | 0.43 | 0.07 | (0.01) | 0.47 |
| Gross Profit Rate | 7.88% | 7.23% | 7.35% | 8.24% |
| Operating Income Rate | 3.01% | 1.25% | 0.91% | 2.57% |
| ROE | 3.35% | 0.59% | (0.41%) | 3.50% |

Notes:

(一).力麗母公司:7,552,073,732 元 (同期成長 10.2%)
(二).合併(含子公司):8,198,476,464 元(同期成長 14.93%)

Lealea POY Performance

Unit: million

2018

2017
JAN

JAN
FEB
AMR
APR
MAY
JUN
JUL
AUG
SEP
JAN
FEB
AMR
APR
MAY
JUN
JUL
AUG
SEP
TOTAL
| 單位：百萬元 | 1月 | 2月 | 3月 | 4月 | 5月 | 6月 | 7月 | 8月 | 9月 | 合計 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 107年 | 377 | 190 | 500 | 393 | 445 | 312 | 346 | 465 | 384 | 3,412 |
| 106年 | 182 | 266 | 340 | 226 | 341 | 471 | 331 | 402 | 382 | 2,941 |
Unit: million

2018

2017

Lealea DTY Performance

Unit: million

2018
2017
JAN

FEB
AMR

APR

MAY

JUN

JUL

AUG

SEP
| 單位：百萬元 | 1月 | 2月 | 3月 | 4月 | 5月 | 6月 | 7月 | 8月 | 9月 | 合計 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 107年 | 596 | 411 | 637 | 557 | 605 | 567 | 571 | 598 | 570 | 5,112 |
| 106年 | 449 | 493 | 562 | 474 | 551 | 486 | 513 | 546 | 540 | 4,614 |
JAN
FEB
AMR
APR
MAY
JUN
JUL
AUG
SEP
TOTAL
Unit: million

2018

2017

Core Value Product

$D:\Cindy\素材\故事牆圖\Logo\Ecoya.png$
Solution Dyed Yarn
Ecoya can save most dyeing procedures, when we replace the regular textiles by Ecoya, we can reduce a lot of emission of CO2 and COD, also consuming amount of water and chemical.
Ecoya not only protect ecosystem and environment, but also offer excellent performance.

Core Value Product

$C:\Users\user\Desktop\Repet\logo.png$
Recycled Polyester Yarn

RePET® is the new recycled polyester fiber manufactured from used PET bottles. Using environmentally-friendly recycling processes, RePET® does not depend on petroleum and thus effectively conserves natural resources and reduces environmental burden without compromising quality.

$D:\DATA\Desktop\2017法人\repet2.png$

TITAS台北紡織展

Sponsor to CMGSH
(Taipei Jinmei Girls high school)

$D:\DATA\Desktop\106061864.jpg$
Inner layer:?Advanced thermo?yarn

Outer layer:
Advanced water repellent yarn
From LIBOLON’s design?and garment produce.

$D:\DATA\Desktop\景美_181108_0001.jpg$

$D:\DATA\Desktop\景美_181108_0008.jpg$

$D:\DATA\Desktop\景美_181122_0005.jpg$

Notes:

Letter of Thanks,
Tug of war team, CMGSH:
Thank you for the support?and assistance from LIBOLON
From the long time. ?This is our best motivation,?and we’ll work harder in the future.

$D:\DATA\Desktop\S__105775116.jpg$
~Tug of War team, CMGSH~

High-value added Yarn

$D:\DATA\Desktop\2017法人\1449470488.jpg$
Ocean Energy yarn

$D:\DATA\Desktop\2017法人\1449481571.jpg$
Water Repellent yarn
Leatherline
Splashlea

$D:\DATA\Desktop\2017法人\1449471374.jpg$

$D:\DATA\Desktop\2017法人\1449471012.JPG$
Equatex

Industrial trends
Strengths
Ecological & energy saving, safety protection, functional/novelty yarn. Customized spec.
Benefits to petrochemical & textile industry in Taiwan from expanding US-China war.
Higher textile yarn demand to the application of the automotive, IT, and shoe industry.
Industry 4.0: Advanced manufacturing technology.

Industrial trends
Weaknesses
Higher production cost from the strict environmental?protection & labor law.
Faster production chain change: Commodity production transferred?to South East Asia.
Lack of young manpower: Big age gap from the management gap?, shortage of the labor force, and insufficient automatic system.
4. Export tax/duty barrier & local production chain.

Strategy/Measures:
1. More R& D to energy saving & functional products. Advanced technology to the production (New chip spinning for POY in 2019).

$D:\DATA\Desktop\環保紡織品專刊1-01.jpg$
2. Production Expansion/Indonesia LIBOLON?(12 new high speed DTY machine).
3. Automatic production (Industry 4.0).
4. More sales to the automotive, shoe,? IT and ENPLA industry.

5. Reduce labor force, increase high ?-valued added products, New high speed?PIN TIPE texturing machine(abt. 10 sets).

$D:\DATA\Desktop\LIBOLON\公司LOGO\QRHacker.com.png$
Q&A

AI assistant

LEALEA Investor Presentation 2018

Notes:

Notes:

AI assistant

LEALEA — Investor Presentation 2018

Notes:

Notes:

More from LEALEA

LEALEA Investor Presentation 2018