Univacco Technology Inc. · TPEX:3303
Univacco Technology — Q1 2019 Earnings Presentation
49 slides from Univacco Technology's earnings presentation, Jun 13, 2019
Slide 1: Univacco Technology Inc. 2019Q1 Business Review
Univacco Technology Inc. 2019Q1 Business Review 3303.TWO www.univacco.com
Slide 2: Disclaimer Statement
Disclaimer Statement This presentation and release contains “forward-looking statements” which may include, but not limited to, all statements of the Company regarding all business activities, events or developments that occur in the future. These statements are based on the Company’s assumptions ab
Slide 3: Outline
Outline Company Profile Core Technology & Competitive Advantages Finance Review Future Plan & Corporate Governance | PAGE 3
Slide 4: Company Profile
~~ (WIVACCO COMPANY PROFILE
Slide 5: Univacco Company Profile (3303.TWO)
Univacco Company Profile (3303.TWO) Chairman Mr. Kuo-Lung Tsai CEO Mr. Bruce Lee Established Aug. 29, 1990 Paid-up Capital NT 961 million * Consolidated Revenue NT 2.48 billion (2018) Listing Day May 28, 2007 Group Employees 640 * Main Products Vacuum Coating Foils (VC) Optoelectronic Films (OP) *:
Slide 6: Focus on Foil for 30 years Global Top 3 Foils Brand
Focus on Foil for 30 years Univacco Global Top 3 Foils Brand 2018: 95% consolidated revenue of Univacco came from VC products (foils) | PAGE 6
Slide 7: Foils Sales to Over 60 Countries
Foils Sales to Over 60 Countries Lithuania Russia The Netherlands France Ukraine USA Spain Bulgaria East Japan West Operations Iran Wuxi Operations HQ Taiwan Dubai Colombia India Malaysia 7 Production plants 6 Subsidiaries South Africa Chile Australia Argentina 18 Exclusive distributors HQ Subsidiar
Slide 8: Proportion of Exports is Up to 90%
Proportion of Exports is Up to 90% 2018 2002 37 % 89 % | PAGE 8
Slide 9: | PAGE
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Slide 10: What is stamping foil?
What is stamping foil? The structure of stamping foil PET film : main material Release：release the main structure from PET film Color：provide color to the product Aluminium coating：provide metal effect Topping with gum：paste on the object | PAGE 10
Slide 11: How to Stamp Foil on Paper ?
How to Stamp Foil on Paper ? • Die • Foil • Heat • Pressure Source: Long Shun printing house (stamping) | PAGE 11
Slide 12: Stamping Process
Stamping Process Heating Stamping Die PET No Corona Film Release (RI) Color (TOP) Aluminium coating (AL) Topping with gum (AD) Substrates | PAGE 12
Slide 13: Stamping Process
Stamping Process Heating Stamping Die PET No Corona Film Release (RI) Color (TOP) Aluminium coating (AL) Topping with gum (AD) Substrates | PAGE 13
Slide 14: Stamping Process
Stamping Process Heating Stamping Die PET No Corona Film Release (RI) Color (TOP) Aluminium coating (AL) Topping with gum (AD) Substrates | PAGE 14
Slide 15: Foils Series
Foils Series Packaging with metal design elements, enrich the design level, thereby enhancing brand and product value! Hot Holographic Cold foil stamping foil foil Hot stamping foil can be It can be directly Multiple laser patterns applied to the large area, connected to the are available for hot fo
Slide 16: Hot Stamping Foils Application
Hot Stamping Foils Application Label or carton of wine, cigarette, food, health and beauty aids | PAGE 16
Slide 17: Co-Branding Case
Co-Branding Case Tainan City Government / One-dollar Red Envelope GOLD BLACK | PAGE 17
Slide 18: Cold Foils Application
Cold Foils Application Labels Food Packaging Cigarettes | PAGE 18
Slide 19: Co-Branding Case of Cold Foil Movie poster- Life of Pi Poster
Co-Branding Case of Cold Foil Movie poster- Life of Pi Poster | PAGE 19
Slide 20: Case of Cold Foil / Holographic Foil
Case of Cold Foil / Holographic Foil Golden Horse Awards x AQUAGEN Sparkling Water ─ Univacco foil on the shrink sleeve label Cold foil stamping on shrink sleeve label is hard to show the excellent metal effect under heating and pressure procedure, but Univacco’ s cold foil made it! 【GHA 53 / 2016】
Slide 21: Awards and honors
Awards and honors Univacco receives numerous awards worldwide. Univacco foil products were awarded by FSEA in 9 consecutive years, and products are well recognized and appreciated in the global market. Won FSEA Won FINAT Won Sun Cup Gold Leaf Award 2017 Asia Label 2011-2019 Awards 2016 經濟部 Won Poten
Slide 22: Core Technology & Competitive Advantages
CORE TECHNOLOGY & COMPETITIVE ADVANTAGES
Slide 23: Applied Fields of Vacuum Coating
Applied Fields of Vacuum Coating Low Technology barrier High Metallic film Metallic Metallic film Stamping for flexible yarn for rigid foil packaging packaging Holographic effect | PAGE 23
Slide 24: Own Branding & Manufacturing
Own Branding & Manufacturing Univacco owns its core technology by building up a strong R&D team. By integrating the technologies in chemical formulation, vacuum metallizing, and coating technology, Univacco prides itself in foils development, establishing own brand name and setting up sales channels
Slide 25: Foils Application Markets
Foils Application Markets Hot Stamping Cold Foils Foils Greeting Cards Labels for daily supplies Gift boxes/package Poster printing Wine/Liquor labels Gift boxes/package Hot Foils Specialty Foils for Plastic Wine/liquor bottles Vehicle license plates Clothing, leather bags Table cloth Bike frame/hel
Slide 26: Breakthrough Cold Foil Launched
Breakthrough Cold Foil Launched Univacco is the world's second-largest producer of cold foils, and the largest in Asia. Launched over a century – Breakthrough foil product- Hot stamping foil Cold foil | PAGE 26
Slide 27: Cold Foil Benefits Industrial Chain
Cold Foil Benefits Industrial Chain 01 Reduce printing time thoroughly 18,000 sheets/hour 02 Reduce material loss (Single workshop/ alignment precisely) 03 Reduce inventory (Apply to more than 90% cold foil glue brands) 04 Enrich the printed-color possibility 05 Apply to more printing material | PAG
Slide 28: Brand & Distribution Strategy
Brand & Distribution Strategy Get rid of OEM production and choose OBM, a difficult but correct road. 2016- 2007-2016 Passive + active 2002-2007 marketing Passive Inception of marketing 1990-2002 own brand- UNIVACCO Localize market strategy OEM Local market information gathering Approach local partn
Slide 29: Trade Shows & Exhibitions
Trade Shows & Exhibitions | PAGE 29
Slide 30: Finance Review
~~ (WIVACCO FINANCE REVIEW
Slide 31: Consolidated Revenues
Consolidated Revenues OP Revenue VC Revenue Unit : NT$ million 3,500 3,123 2,985 3,000 2,763 2,722 2,702 2,426 2,428 2,488 2,500 2,316 2,242 2,366 2,000 2,081 2,045 2,014 2,000 1,809 1,896 1,801 1,500 1,715 1,766 1,000 591 500 561 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019M BTAX (VC) 1
Slide 32: VC Business Performance
VC Business Performance VC Revenue VC consolidated GM VC Sales Quantity Unit : Million SQM Unit : NT$ million 536 3,500 550 3,000 429 450 399 2,500 331 2,366 327 350 2,014 2,000 2,000 1,869 1,801 250 1,500 108 150 1,000 31% 28% 28% 25% 27% 26% 50 500 561 - -50 2014 2015 2016 2017 2018 2019Q1 Revenue
Slide 33: VC Niche products-Cold Foil Revenue
VC Niche products-Cold Foil Revenue Unit : NT$ million Cold Foil Revenue Cold Foil Sales Quantity Unit : Million SQM 196 1,500 200 1,250 141 150 135 993 1,000 100 747 93 726 750 642 100 594 500 41 50 250 214 - - 2014 2015 2016 2017 2018 2019Q1 Cold Foil-VC 34% 33% 37% 36% 42% 38% Revenue Ratio | PAG
Slide 34: VC Export-Sales Ratio After Listing
VC Export-Sales Ratio After Listing Domestic sales→ OEM→OBM Export Domestic 外銷 Export 內銷 外銷 Export sales Unit: NT million 200% 2,500.00 175% 2,000.00 1,500.00 150% 1,000.00 125% 500.00 100% - 75% (500.00) 50% (1,000.00) 25% (1,500.00) 57% 64% 69% 65% 64% 60% 69% 71% 81% 87% 88% 89% 0% (2,000.00) 200
Slide 35: Consolidated Revenue by Region
Consolidated Revenue by Region 11 17 % % 44 % Taiwan 14 % 13% others China Europe America Data: Univacco consolidated revenue in 2018 Note: Gray zone represents the revenue of other Asia countries, Oceania, and Africa. | PAGE 35
Slide 36: Consolidated Income Statement(yr)
Consolidated Income Statement(yr) 2018Y 2017Y DIF YoY Operating revenue 2,488,090 2,241,961 246,129 10% Operating costs (1,895,577) (1,731,667) (163,910) 9% Gross profit (loss) from operations 592,513 510,294 82,219 14% Gross margin 23.81% 22.76% Operating expenses (365,003) (407,822) 42,819 -12% Se
Slide 37: Consolidated Income Statement(q)
Consolidated Income Statement(q) 2019Q1 2018Q4 QoQ 2018Q1 YoY Operating revenue 590,938 667,658 (76,720) 556,920 34,018 Poperating costs (434,562) (502,202) 67,640 (418,150) (16,412) Gross profit (loss) from operations 156,376 165,456 (9,080) 138,770 17,606 Gross margin 26.46% 24.78% 24.92% Operatin
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet 2019Q1 2018Q4 2018Q1 Selected Asset Items Cash 321,617 369,517 559,147 Accounts Receivables 596,719 665,550 572,367 Inventory 424,937 453,384 349,702 Fixed Assets/Intangible Assets/Right-of- 1,317,254 1,097,516 1,108,335 use Assets Other Assets 354,710 388,016 371,831 Tota
Slide 39: Cash Flow
Cash Flow Unit: In Thousands of New Taiwan Dollars 2019Q1 2018Q4 2018Q1 Cash Flow from Operations 72,689 141,046 (3,227) Cash Flow from Investing (155,616) (83,455) (103,347) Cash Flow from Financing 27,436 (29,803) 34,304 Effect of Exchange Rate Change 7,591 1,486 3,481 Net Increase in Cash (47,900
Slide 40: Earnings & Dividends
Earnings & Dividends Unit：NTD/share EPS (NTD/share) Dividend (NTD/share) Distribution Yield Unit：% 5 350% 4.5 300% 4 250% 3.5 200% 150% 3 100% 2.5 50% 2 0% 1.5 -50% 1 -100% 0.5 -150% 0 -200% 2012 2013 2014 2015 2016 2017 2018 Net Profit after Tax 124 152 60 150 177 16 209 (NT$ Million) EPS (NTD/shar
Slide 41: Future Plan & Corporate Governance
FUTURE PLAN & CORPORATE GOVERNANCE
Slide 42: Focus on Core Business
Focus on Core Business Actively participate Strengthen global the global trade sales channels and shows & exhibitions cooperate with large to promote global printing UNIVACCO houses brand name Chemical Formula, Vacuum metallizing, Precision coating “Core Technology” Expand production Continue to R&D
Slide 43: Enlarge Vacuum Coating Industry
Enlarge Vacuum Coating Industry The value of OBM has been revealed, the revenue of company has grown rapidly. Implement the intellectualization manufacturing to strengthen the advantages in the industry. Labor costs in China has increased gradually and it is difficult to against R&D technology. Inve
Slide 44: Release CSR Report since 2013
Release CSR Report since 2013 2013 2014 2015 2016 2017 Since 2015, Univacco has been among the top 20% Taiwan OTC listing companies in “Corporate Governance Performance Review” | PAGE
Slide 45: Green Univacco - CSR
Green Univacco - CSR Energy management system ISO 50001:2011 Green Management System Environment management ISO 14001:2015 Greenhouse gases management ISO14064- 1:2006 / Carbon footprint requirements & guidelines ISO 14067:2013 Green Supply Chain Suppliers are required and audited to follow
Slide 46: ISO Certifications
ISO Certifications Quality Management ISO 9001:2015 2000 | PAGE 46
Slide 47: Green Materials
Green Materials • Develop low VOC recipes • Low carbon recipes 04 • Water base recipes 03 Water-based resin (VOC free) 02 Environment friendly 01 Halogen solvent free High solid 8 products are introduced in 2012. content coating The volume of water-based resin is technology 30,727KG in 2017, raising
Slide 48: Focus on Green Methods
Focus on Green Methods Eco-solvent formulas used in production development Regenerative Thermal Oxidizers (RTO) recycle combustion to reduce VOC emissions 6 RTO 2019/6/12 | PAGE 48
Slide 49: Thank You
THANK YOU Stock code：3303 www.univacco.com