ZIG SHENG — Investor Presentation 2015

Sep 2, 2015

Since 1969

Latest Situation

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Ticker: 1455 TT

Sep, 2015

INNOVATION

SPECIAL

FUNCTION

INTEGRATION

ENVIRONMENT

Com an Profile p y

• 1969 Company established & DTY 1[st] Plant start up

• 1992 DTY 2[nd] Plant start up

Production plants

Fiber Business Division

• 1993 Listed on the Taiwan Stock Exchange

• 1997 ISO-9001 certified

• 1998 DTY 3[rd] Plant start up

• 1999 Nylon Spinning 1[st] Plant start up

• 2000 Nylon Polymerization 1[st] Plant start up

• 2004 “Innovative R&D center” founded.

• 2005 Nylon Polymerization 2[nd] Plant start up

• 2006 Compounding plant start up

• 2007 OHSAS-18000 certified

• 2010 ISO/ TS-16949 certified

• 2011 Nylon Polymerization 3[rd ] Plant ,

• Nylon Spinning 2[nd] Plant acquired  2012 ATY Plant, Nylon Spinning 2[nd] Plant start up

• 2013 Nylon Polymerization 3[rd ] Plant start up

• 2014 ISO 14064-1 certified, ISO 14001 certified

• 2015 GRS certified

3 DTY Plants

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DTY Plant Ⅰ DTY Plant Ⅱ DTY Plant Ⅲ 1969 1992 1998

2 Spinning Plants 1 ATY Plant

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PA6 Spinning Nylon Spinning ATY Plant 2012
Plant Ⅰ , 2000 Plant Ⅱ , 2012
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Chemical Materials Division

3 PA6 Polymerization Plants, 1 EPLA Plant

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PA6 Polymerization PA6 Polymerization PA6 Polymerization
Plant Ⅰ ,2001 Plant Ⅱ , 2005 Plant Ⅲ ,2013
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4 Main Products

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Fiber Division Chemical Division
3 Nylon6 Filament Vertical Integration 1 Nylon6 Chip
4 Nylon/Polyester DTY/ATY 2 ENPLA
PTA, MEG CPL
1 Nylon Chip
Polyester Chip
Polyester POY 3 Nylon 2 ENPLA
Filament
4 Polyester DTY 4 Nylon DTY
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Taiwan Market Share

Fiber Division Chemical Division

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Capacity (kt/yr) 60 57 220 12 Market Share (%) 22 % 8 % 22 % 11 %

Source: Taiwan Man-Made Fiber Industries Association, Taiwan Synthetic Resins Manufacturers Association

4

Sales Breakdown By Products (H1 2015)

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Turnover : USD 260,127,000 Fiber Business Division Chemical Materials Division

FX：31.6

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DTY EPLA Domestic 80.7％ 3.0 ％ Domestic 52.3％ Export Export - China 9.0% - China 21.2% 28.8 ％ - Others 10.3% - Others 26.5% 49.7 ％ 18.5 ％ Nylon Filament Nylon Chip Domestic 75.9％ Domestic 27.3％ Export Export - China 8.0% - China 50.2% - Others 16.1% - Others 22.5%

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各季損益表 Income Statements

	各季損益表 Income Statements
單位：新台幣百萬元 Unit: NTD million 會計科目 ITEM 2015 2014 2 Q 1 Q 4 Q 3 Q 2 Q Amount % Amount % Amount % Amount % Amount % 營業收入Operating Revenue 4025 100 4025 100 4701 100 4253 100 4751 100 營業毛利Gross Profit 319 7.6 (10 ) (0.2 ) 82 1.7 151 3.6 12 0.3 營業費用Operating Expenses 126 3.0 (115 ) (2.9) (119 ) (2.5) (110 ) (2.6) (110 ) (2.3) 營業淨利Operating Profit 193 4.6 (125 ) (3.1) (37) (0.8) 41 1.0 (98) (2.1) 營業外收(支) Non-operating Income & Expenses 99 2.4 48 1.2 66 1.4 (9) (0.2) 22 0.5 稅前淨利Profit Before Income Tax 292 7.0 (77 ) (1.9 ) 29 0.6 32 0.8 (76) (1.6) 所得稅(費用)利益Tax (Exp) Gain 22 0.5 10 0.2 (2) 0 (7) (0.2) 1 0 稅後淨利Profit after Income Tax 270 6.4 (67 ) (1.7) 27 0.6 25 0.6 (75) (1.6) 每股盈餘EPS ( NTD ) $ 0.44 $ ( 0.11) $ 0.04 $ 0.04 $ ( 0.12)
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6

Last 3 Years Major Financial Indices

單位：新台幣 億元 Unit:NTD 100 million

會計科目 ITEM	1H 2015	2014	2013	2012
應收款項淨額Receivables	17.40	17.12	14.82	17.84
存貨淨額Inventory	29.98	26.59	36.97	34.30
不動產廠房及設備Fixed assets	64.42	67.08	70.95	73.52
總資產Total assets	126.81	124.67	137.71	140.14
長短期借款Long short-term loans	28.27	25.62	44.25	41.68
股本Capital	61.18	61.18	61.18	60.57
營業收入Operating revenue	82.21	181.70	182.75	169.97
稅後淨利Profit after Income Tax	2.03	0.57	3.67	( 0.98)
稅後純益率Profit margin after tax	2.5%	0.3%	2.0%	( 0.6%)
總資產報酬率ROA	1.6%	0.8%	3.1%	( 0.33%)
股東權益報酬率ROE	2.7%	0.8%	5.0%	( 1.43%)
每股盈餘EPS(NTD)	0.33	0.09	0.60	( 0.17)
負債佔總資產比Liabilities ratio	40.5%	40.1%	45.4%	48.6%
流動比率Current ratio	186.0%	142.2%	128.4%	151.7%
每股淨值Book value per share(NTD)	12.34	12.20	12.30	11.90

*** 民國102年起採用國際會計準則(IFRS)之規定編製數表達。**

• 民國101年12月(含)以前採用台灣會計準則之規定編製數表達。

7

China and Taiwan Chemical Fiber Industry Comparison

• Intensive of capital, labor, Technology

• Comparison of China vs. Taiwan Chemical Fiber Industry

CHINA

Bigger and Stronger

TAIWAN

Niche and Refinement

Vertical Integration Industries Integration Planned Economy Based on Export-Oriented Small and Domestic Demand Medium Business

• Commodity Grade Yarn Unprofitable

• No Function, No Fashion, No Sales

• Cost Basis Business Model is Not Enough

• • Emphasis on R&D, Innovation, in Combination with Brand

• • Self-Optimization

8

U turn 2009 vs. 2015 p

• Crude Oil has Bottomed Out

• Textile Industry is Cyclical

2009 2015 Demand Shrank Oversupply Wheat from the chaff Excellence Cotton Driven Market[Low Raw Material Price ] Base There were Two Good ? Years

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Ex ectation p

1. People's Disposable Income Has Increased

2. 4 Major Economic States Revived

3. People’s Spending Power Increased is a Fact

4. Crude Oil Rebound Favors Chemical Fiber Industry

5. Q2 Revival, What was Once Resistance of Nylon will Becomes Booster

6. Profitability Stability Expected with Aid of DTY Brands and Replacement of Old Equipments.

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ECLAT Su l Chain pp y

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BRAND
GARMENT GARMENT
ECLAT
DYING &
FINISHING
FINISHING
ECLAT
FABRIC
GREY FABRIC
YARN DYED ECLAT YARN
ZIG SHENG
DTY, ATY
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11

Product that contains ZIG SHENG material

• Fiber Business Division

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• Chemical Materials Division

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12

THANKS

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INNOVATION

SPECIAL

FUNCTION

INTEGRATION

ENVIRONMENT