Tatung Co. · TWSE:2371
Tatung — H1 2021 Earnings Presentation
48 slides from Tatung's earnings presentation, Aug 20, 2021
Slide 1: Tatung Company H1 2021 Analyst Meeting
Tatung Company H1 2021 Analyst Meeting 2021H1 Operation Report @ Aug 20 2021 Enabler of Digital Transformation
Slide 2: Safe Harbor Notice
Safe Harbor Notice This presentation contains forward-looking statements and is subject to risks and uncertainties. Actual results may differ materially from those contained in the forward looking statements. Except as required by law, we undertake no obligation to update any forward-looking stateme
Slide 3: Key Notes from Management Team
Key Notes from Management Team 1. New Operation Motivation Recruit cross-border experts and gather external professional assist Strengthen corporate governance and adjust organizational & operational policies accordingly Intensify brand image and create potential corporate value 2. 2021H1 Re
Slide 4: Agenda
Agenda Time Topic Presenter Duration 14:30~14:40 New Operation Motivation MK Lu- 10” Chairman 14:40~15:00 Financial Report Elsa Chang- 20” CFO 15:00~15:30 Prospective Planning Chaney Ho- 30” CEO 15:30~16:30 Q&A 60” Enabler of Digital Transformation
Slide 5: Session 1: New Operation Motivation
Session 1 New Operation Motivation Enabler of Digital Transformation 5
Slide 6: Professional BOD
TATUNG CONFIDENTIAL Professional BOD Cross-border experts/ Energy of Professional Enabler of Digital Transformation 6
Slide 7: Board of Directors: Chairman and Directors
Ming-Kuang Lu Chun-Sheng Ho Wkang-Hsiang Wang I-Wen Chung Chairman Director / CEO Director Director Work / educational experience Work / educational experience Work / educational experience Work / educational experience Honorary Doctor of Tatung University Bachelor of Electrical Engineering, Tatung
Slide 8: Directors and Independent Directors
Chi-Yen Liang Ching-Hsiang Lin Sheng-Tsheng Lee Chin-Lai Wang Chung-Zung Kung Director Director Independent Director Independent Director Independent Director Work / educational experience Work / educational experience Work / educational experience Work / educational experience Work / educational ex
Slide 9: Making Tatung the World's Tatung: Vision of Tatung
MAKING TATUNG THE WORLD’S TATUNG Vision of Tatung Enabler of Digital Transformation 9
Slide 10: Making Tatung the World's Tatung
MAKING TATUNG THE WORLD’S TATUNG Looking back on 2020, affected by the global epidemic and trade wars, Tatung continues to face challenges. We continue to uphold the spirit of "Integrity, Honesty, Industry, and Frugality" and vision of "Providing high- quality products with innovative technology to
Slide 11: Session 2: Financial Report
Tatung Co. Confidential Session 2 Financial Report Enabler of Digital Transformation 11
Slide 12: Company Overview
Company Overview Establish 1918 Establisher Mr. Shan-Chih Lin | Mr. Ting-Sheng Lin Corporate Value Integrity, Honesty, Industry, Frugality Management team Chairman：Mr. Ming-Kuang Lu| CEO： Mr. Chun-Sheng Ho Revenue Individual→NTD$ 7.7 billion (2021H1) Consolidated→NTD$ 13.9 billion (2021H1) Employee
Slide 13: Business Scope
Business Scope % : Revenue Percentage in 2020 Heavy Electrical Equipment Electric Power Motor Cable 49% Smart Meter Smart Energy New Energy Solar Energy Energy storage system 5% System Integration System Integration 14% Appliance Business Appliance Advanced Electronics 32% Enabler of Digital Transfo
Slide 14: Tatung Group
Tatung Group Tatung’s business scope covers photoelectric optoelectronics, energy, asset development, brand, chemical industry, electronic system integration and electronics Energy 5 listed company in Tatung Group Revenue： NTD 13.9 billion (2021H1) System Integration Employee ： 6,300 (overse
Slide 15: Major Subsidiary
Major Subsidiary TATUNG Shan Chih Asset Elitegroup Tatung System Tatung Fine Tatung Fine Development Computer Technologies Chemicals Co. Chemicals Co. Co., Ltd. Systems Co.,Ltd. Inc. Tatung group has Tatung group Tatung has a a 43.35% Tatung has a Tatung group has a 54.63% 100% shareholdin
Slide 16: Financial Highlight
Financial Highlight Enabler of Digital Transformation 16
Slide 17: Financial Summary
Financial Summary 1. Y21 1H Performance of Tatung Group Although some subsidiaries are affected by the pandemic, but growths can still be observed from some of them. Tatung group is still operating firmly and steadily. Consolidated revenue declined, but the company grow by 4.2%. Consolidated gro
Slide 18: Consolidated Revenue
Consolidated Revenue unit：NTD million Shan Chih Tatung Tatung Forward Tatung Fine San Chih Asset System (individual) Development Technologies Electronics Chemicals Semiconductor TTL others Total Amount 7,745 1,470 1,847 473 151 112 464 1,715 13,977 2021 H1 Percentage 55.41% 10.51% 13.21% 3.38% 1.09%
Slide 19: Consolidated Net Income
Consolidated Net Income unit：NTD million Shan Chih Asset Tatung System Forward Tatung Fine Tatung Chunghwa Picture San Chih others Development (individual) Tubes(Consolidated) (Consolidated) Technologies Electronics Chemicals Semiconductor TTL Total (Consolidated) (Consolidated) (Consolidated) (incl
Slide 20: Y21 2Q vs 1Q (Consolidated)
Y21 2Q vs 1Q-(Consolidated) NTD$ Million Quarterly growth rate/ 2Q21 1Q21 increase and decrease rate/ increase and decrease Operating revenues 7,409 6,568 12.80% Gross profit 1,983 1,469 34.99% Gross margin 26.76% 22.37% +4.39% Operating expenses 1,544 1,501 2.86% Expense Ratio 20.84% 22.85% -2.01%
Slide 21: Y21 1H vs Y20 1H (Consolidated)
Y21 1H vs Y201H-(Consolidated) NTD$ Million Quarterly growth rate/ 1H21 1H20 increase and decrease rate/ increase and decrease Operating revenues 13,977 16,739 -16.50% Gross profit 3,451 4,108 -16.00% Gross margin 24.69% 24.54% +0.15% Operating expenses 3,045 3,924 -22.40% Expense Ratio 21.79% 23.44
Slide 22: Operating Revenues
Operating Revenues (Consolidated) (Individual) 10,000 9,084 5,000 9,000 4,500 4,310 4,026 4,121 4,050 8,000 7,655 7,520 7,383 7,409 4,000 3,695 7,000 6,568 3,407 3,500 6,000 3,000 5,000 2,500 4,000 2,000 3,000 1,500 2,000 1,000 1,000 500 - - 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q2
Slide 23: Gross Profit
Gross Profit (Consolidated) (Individual) 3,000 30.00% 700 15.10% 16.00% 26.99% 26.76% 2,500 25.00% 600 13.02% 14.00% 22.37% 21.63% 11.55% 12.00% 500 2,000 20.00% 9.18% 10.00% 14.91% 14.88% 400 1,500 15.00% 8.00% 5.99% 300 612 2,452 6.00% 1,000 1,983 10.00% 465 481 1,656 200 1,469 2.65% 4.00% 313 500
Slide 24: Operating Profit
Operating Profit (Consolidated) (Individual) 2.98% 600 8.00% 200 4.00% 415 439 121 5.93% 6.00% 0.00% 2.00% 400 100 4.57% 4.00% 1 0.00% 0 200 2.00% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 -2.00% -100 0 0.00% -4.00% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 -200 -32 -2.00% -200 -3.02% -6.00% -0.49% -231 -4.00% -300 -276 -8
Slide 25: Net Income (after tax)
Net Income (after tax) (Consolidated) (Individual) 1,000 20.00% 1,000 25.00% 617 827 8.33% 500 20.43% 20.00% 10.00% 0 500 15.00% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 0.00% 343 -86 -500 10.08% 10.00% -0.95% -560 -557 -651 -10.00% 5.00% -1,000 0 -7.32% -8.48% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 0.00% -1,500 -20.00
Slide 26: Earnings Per Share/Net Value Per Share
Earnings Per Share/Net Value Per Share Earnings Per Share(NTD) Net value per share(NTD) 0.4 0.35 15.6 15.48 0.3 15.37 15.4 0.2 0.15 15.27 0.1 15.2 15.03 15.02 0 -0.07 -0.08 15 -0.1 -0.13 14.84 -0.2 14.8 -0.3 14.6 -0.4 -0.46 -0.5 14.4 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 -0.6 Net value per 1Q20 2Q20 3Q20 4Q
Slide 27: Main Financial Ratio
Main Financial Ratio (Consolidated) (Individual) 90.00% 200.00% 173.92% 80.00% 180.00% 70.00% 76.21% 160.00% 72.71% 70.73% 71.26% 70.17% 73.70% 134.31% 60.00% 140.00% 50.00% 120.00% 102.52% 100.50% 101.34% 40.00% 100.00% 82.47% 30.00% 80.00% 20.00% 60.00% 10.00% 40.00% 0.00% 20.00% 1Q20 2Q20 3Q20 4Q
Slide 28: Enhancing ESG
Enhancing ESG Enabler of Digital Transformation 28
Slide 29: Solar Business
Solar Business • COD Capacity TT Solar Business 366MW • COD Capacity 123MW * Two SPV were sold in 2021 **The Capacity include two sold SPV – Contract Capacity 542MW, COD Capacity 179 MW Enabler of Digital Transformation 29
Slide 30: Solar Business
Professional Solar EPC and O&M company with the Solar Business advantages of supply chain integration. The project performance is spread all over Taiwan. Real-time management of the intelligent monitoring Position system. Focusing on the public roof top projects. Cooperate with national poli
Slide 31: Smart Energy Business
Smart Energy Business Smart Energy Business =「 System integration 」+ 「Energy Management」 Core Business： AFC Integrated energy storage application Micro-Grid Service Advantages： Professional SI Best EMS Service Comprehensive cloud management system Enabler of Digital Transformation 31
Slide 32: Smart Energy Business
Smart Energy Business First Key Project Projects 4MW Day-Ahead Market AFC Project AFC project with Taipower Expect to provide service on Sep 2021 • 1MW AFC Service contract (Follow Taipower’s schedule) signed with Taipower is one of the first AFC project in 25MW Day-Ahead Market AFC Project Taiwan
Slide 33: Session 3: Prospective Planning
Tatung Co. Confidential Session 3 Prospective Planning Enabler of Digital Transformation 33
Slide 34: Enabler of Digital Transformation
Enabler of Digital Transformation
Slide 35: Increase profitability
Increase profitability 1)Increase Sales (focus on core businesses and incubate emerging businesses) 2)Optimize Manpower (organization vitality recovery plan) 3)Power of Brand/ Export Market (Global Business Expansion) 4)Reduce Non-operation Expenses Enabler of Digital Transformation 35
Slide 36: Focus on core businesses and incubate emerging businesses
Focus on core businesses and incubate emerging businesses Electric Car • Electric Bus motor/Drive Motor • Electric Commercial Vehicle Motor/Drive Smart • Solar Power System、Energy storage system Energy • Smart Micro-Grid System Smart • Smart Hospital Medical System Medical • Acting for foreign medic
Slide 37: EV BUS Market/Milestone
Electric Vehicle Car EV BUS Market/Milestone 18000 16000 國內電動巴士年銷量預估(輛) 16000 Thousand vehicles Estimated annual sales of 14000 domestic electric buses (Vehicles) Global electric vehicle market size 12000 12083 10000 9131 8000 6907 6000 5230 3917 4000 3966 2952 3014 2224 2296 1677 2000 952 1264 1599
Slide 38: Electric Vehicle Car
Electric Vehicle Car Electric vehicle key power system provider Driver 250kW City Bus 330kW Intercity Bus(Designing) EV Motor 160kW Commercial Car (planning) Enabler of Digital Transformation 38
Slide 39: Goals and vision
Goals and vision 1. Become a major supplier of electric vehicle power systems 2. Speed into the electric vehicle ecosystem by investing in an electric vehicle design and manufacturing company 2021 2022 2023 TAV/Tron-e 250kW DMIT Project of Logistics Commercial Sedan Power matching systemMP
Slide 40: Positioning
Positioning Drive product development based on customer needs 2021 2022 2023 250kW Peak power output 330kW Peak power output 170kW Peak power output Focus: City Bus Focus : Intercity Bus Focus : Business Car 、SUV Master Transportation Bus Cruise10 TAV/SF-ebus Manufacturing / Tron-e Kuo-Kuang Motor T
Slide 41: Energy Forever
Energy Forever Penghu County Changhua County Taichung City Taipei City Kinmen County Tainan& Kaohsiung City New Taipei City Taoyuan City Dongsha Island Pingtung County Nansha Island Hsinchu County Nantou County Enabler of Digital Transformation 41
Slide 42: Energy Forever
Energy Forever Based in Taiwan, looking internationally Taipower plans to build energy storage for 2025 590MW+300MW Fast Responsive Reserve 2025年 2024年 590MW 487MW 2023年 298MW 2022年 109MW 2021年 40MW AFC 1+4MW Yongan 1MW Shalun 1MW 8.5MW Zhangbin 1.5MW Enabler of Digital Transformation 42
Slide 43: Solar Market
Energy Forever Solar Market Roof Top Type Ground Type 3→8GW 17→12GW ■ Reached 60% market share in public rooftop sector： ■ Land meets demand at this stage ： Estimated COD capacity as 223MW in the end of 2021 Prioritize the exclusion of important national ■ With the relaxation of building regulations
Slide 44: 3 Directions of Changing and Transformation
3 Directions of Changing and Transformation Speed x Brand x International Enabler of Digital Transformation 44
Slide 45: Efficiency System Accelerates Organization
Efficiency System Accelerates Organization • Mobility Management Walk into Factory and Workplace Speed • eManager Management Instant Operation Report, KPI Visualization Brand International • Global Executive Weekly Meeting Weekly discussion on New Ideas Enabler of Digital Transformation 45
Slide 46: Branding Tatung, Retrieve Soul of Tatung Brand
Branding ”Tatung”, Retrieve Soul of Tatung Brand • Presentation Systematization Presentation Template Standardization and Systematization Speed • Marketing Digitization Build up a Marketing Digitization Team to Introduce New Brand Marketing Model International • Sense of Honor and Confidence Retriev
Slide 47: Global Biz Development
Global Biz Development • Establishing Global Sales Team Integrating and Establishing a Global Sales Team that Consisted Speed of Talent from Various BU • Establishing Project Team for New Brand Opportunity in US and NSP Introduce new marketing models to penetrate specified market International • Coo
Slide 48: Thank you
Thank you Enabler of Digital Transformation 機密等級標示 4848