Cheng Loong Corp. · TWSE:1904
Cheng Loong — Investor Presentation (September 2009)
26 slides from Cheng Loong's investor presentation, September 2009
Slide 1: Stock code: 1904TT, Updated September 2009
Stock code: 1904TT Updated: September 2009 1
Slide 2: Content
Content Company Overview Financial Summary Industry Overview Strengths & Future Plan 2 2
Slide 3: Company Overview
Company Overview 3 @EBRnsRLa
Slide 4: Highlights
Highlights • Leading Position in Asian Paper Industry – The largest containerboard integrated industrial & paper-based paper company packaging (papermaking company&inpackaging) Taiwan. in – Chinese region The leading (China+Taiwan). integrated industrial paper (papermaking & packaging) operation & –
Slide 5: Business Model
Business Model Consumer & Pulp & OCC Containerboard Corrugated Container Industrial Products Kraft Pulp Corrugating Medium Corrugated Sheetboard Packaging & Delivery OCC Linerboard Corrugated Carton Raw Material Suppliers Cheng Loong Cheng Loong Product Manufacturers Upstream Midstream Downstream En
Slide 6: Market Position
Market Position Cheng Loong is a market leader in the Asian paper packaging industry Market Strategy Containerboard Corrugated Carton Maintained leading position as the dominant player in both Taiwan & China Fine Paper/Duplex Board Household Paper Established strong brand awareness & distribution ch
Slide 7: Presence in Asia
Presence in Asia Strong presence in Asia 7 7
Slide 8: Accelerating Overseas Operations
Accelerating Overseas Operations Add more than one plant every year to grow in line with market growth and reinforce market position in the fast growing regions (China & S.E. Asia). Suzhou Fu Fung converting plant, China Dongguan Guan Loong converting plant, China Loong Fu Kunshan box plant, China G
Slide 9: Strong Capability Growth
Strong Capability Growth Accelerating growth in overseas packaging capacity enhances economies of scale. Paper & Paperboard Corrugated Container 1,800 Unit: mil ion m2 1,622 2.0 Unit: mil ion tons 1.80 1.80 72 1.70 1.75 1,500 1,414 120 1,264 72 0.45 0.45 0.45 120 1.5 0.40 1,200 1,152 72 1.30 72 120
Slide 10: Diverse Customer Base
Diverse Customer Base Well established relationships with global reputable customers. Obtaining plenty of orders from global customers due to outstanding environmental performance. Diversified customer portfolio with over 4,000 customers including international to domestic brands. 10 10
Slide 11: Financial Summary
Financial Summary 4 @EBRnsRLa
Slide 12: Consolidated Revenue
Consolidated Revenue Growth was driven mainly by overseas business 2004-08 Unit: NT$ million CAGR 39,691 39,981 40,000 2,279 1,986 22% 34,443 35,000 1,453 30,232 14,152 14,287 30,000 1,100 58% 11,397 25,000 23,357 8,495 20,850 1,034 2,284 20,000 1,146 17,492 947 15,524 1,066 100 15,000 987 4% 23,553
Slide 13: Consolidated Breakdown by Area
Consolidated Breakdown by Area Increasing tendency in the ratio of overseas revenue 100% 4% 4% 4% 5% 6% 10% 28% 80% 33% 36% 36% 60% 86% 40% 68% 63% 59% 58% 20% 0% 2004 2005 2006 2007 2008 Taiwan China S.E.Asia 13 13
Slide 14: Income Statement
Income Statement Cheng Loong Corp. (1904TT) Unit: NT$ million 2009H1 % 2008H1 % YoY (%) 2008 % Turnover 8,590 100.0 11,989 100.0 (28.35) 23,414 100.0 Cost of Goods 7,242 84.3 10,318 86.1 (29.81) 20,505 87.6 Gross Profit 1,348 15.7 1,671 13.9 (19.33) 2,909 12.4 Operating Expenses 1,102 12.8 1,251 10.
Slide 15: Sales Breakdown by Product
Sales Breakdown by Product Cheng Loong Corp. (1904TT) Other 2% Other 9% 100% Household Paper 90% 8% Household Paper Fine Paper & 9% 80% Duplex Board 19% Fine Paper & Duplex Board 17% 70% 60% Containerboard 35% Containerboard 50% 32% 40% 30% 20% Corrugated Corrugated Container 36% Container 34% 10% 0
Slide 16: Industry Overview
Industry Overview 16 (®EREHARLS
Slide 17: Taiwan's Paper Industry
Taiwan’s Paper Industry Mature and stable market. Strategies adapted for the stable market. - Developing value-added products & services. - Providing total packaging solutions & integrated services - Strengthening overseas production capacity expansion & strategic alliances. Paper & Paperboard Deman
Slide 18: China's Paper Industry
China’s Paper Industry Market is increasing - Continued high economic growth - Lower per capita consumption - Paper packaging has been widely used for delivery, display, and is the cheapest and most flexible packaging solution. Market is consolidating - Merging, acquisition, strategic alliance and v
Slide 19: Strengths & Future Plans
Strengths & Future Plans 19 (®EREHARLS
Slide 20: Integrated Operation & Marketing
Integrated Operation & Marketing Results in valued-added solution for customers with cost advantage & consistent quality & delivery time. Raw materials security through self-own overseas OCC collective offices. Major Materials: OCC Paper Making * Domestic collection (Containerboard) * Overseas colle
Slide 21: Global Logistics
Global Logistics Global logistics to satisfy customers’ needs through multiple complex units. Eastern Eastern China China Unit Unit Taiwan Taiwan Unit Unit Southern Southern China China Unit Unit S.E. S.E. Asia Asia Unit Unit 21 21
Slide 22: China's Structural Operating Model Follows CLC's Model in Taiwan
China’s Structural Operating Model Follows CLC’s Model in Taiwan Eastern China complex mill The most efficient & largest paper complex unit in China Strategic Location Focus on Quality Shanghai Shanghai time to market Chung Chung Loong Loong brand awareness wastepaper availability premium & transpor
Slide 23: Total Packaging Solution
Total Packaging Solution Results in better customer satisfaction to further strengthen relationships with customers. - Services from packaging/graphic design, printing, R&D, production and inventory & lead-time management. - Manage customer demand directly and just-in-time via the exclusive service
Slide 24: New Products
New Products Innovative, proprietary technology to differentiate products. RFID Cartons Paper-based Products 24 24
Slide 25: Future Plan & Strategies
Future Plan & Strategies Maintain Maintain close close and and long-term long-term business business relationships relationships Strengthen customer with with international/local international/local customers customers byby providing providing total total intimacy by strategic packaging solution ser
Slide 26: Thank you! Q & A
Thank you! Q&A 26 (®EREHARLS