Lungyen Life Service Corporation · TPEX:5530
Lungyen Life Service — Q2 2017 Earnings Presentation
19 slides from Lungyen Life Service's earnings presentation, September 2017
Slide 1: Lungyen Life Service Corporation 2Q2017
Lungyen Life Service Corporation (5530 TT/ 5530.TWO) 2Q2017 The best funeral, columbarium and cemetery provider in Asia
Slide 2: Safe Harbor Notice
Safe Harbor Notice This presentation may contain forward looking statements subject to significant risks, uncertainties and actual results may differ materially from those contained in the forward-looking statement. Information in this presentation should not be considered as advice or a recommendat
Slide 3: Company Profile
Company Profile Stock Code: 5530 TT / 5530.TWO Rank Company Name Ticker Mkt Cap (US$M) Market cap: US$ 939.0 M 1 SERVICE CORP INT SCI US $6,616.7 Outstanding shares: 420 M 2 HILLENBRAND INC HI US $2,287.9 Free Float: 30.8% 3 MATTHEWS INTL-A MATW US $1,913.5 Founded in Feb. 1992 4 DIGNITY PLC DTY LN
Slide 4: Population Aging Trend
Population Aging Trend Population and percentage aged 65 and over Total death toll annually in Taiwan '000 people % of population % of population '000 people 8,000 45% 400 2.0% 7,000 40% 350 1.8% 35% 1.6% 6,000 300 1.4% 30% 5,000 250 1.2% 25% 4,000 200 1.0% 20% 3,000 0.8% 150 15% 0.6% 2,000 10% 100
Slide 5: Lungyen's Core Competence
Brand Recognition First & largest public funeral service company in TW No. 1 market share of preneed contract Finance Sufficiency (around 70%) Strong cash flows from prepayments of Brand Awarded by TSE for ranking top 5% public companies with Best Practice of Corporate Product Innovation preneed con
Slide 6: Competitive Network Advantage
Competitive Network Advantage Lungyen Group now has 7 cemetery sites which establish strong supply chain to serve the whole Taiwan. Sanzhi Taoyuan 3D simulation photo; reference only Northern Taichung Taiwan 3D simulation photo; reference only 3D simulation photo; reference only Central Taiwan Wanli
Slide 7: Columbarium and Cemetery (C&C)
Columbarium and Cemetery (C&C) Lungyen Group supplies diversified columbarium and cemetery island-wide, with both high-end and middle- end products. Lungyen Group strives to be dominant in C&C business in Taiwan. (1) High-end C&C products Sanzhi Cemetery Park in New Taipei City (Northern Taiwan) - C
Slide 8: Key Financial Results
Key Financial Results For 2Q2017, Lungyen’s consolidated revenue was NT$1,274.9 million. The gross margin, the operating margin, and the net margin were 74.8%, 43.8%, and 36.8%, respectively. The EPS was NT$1.04. 2Q17 NT$ Mn 2Q16 NT$ Mn Sales Revenue 1,275 Sales Revenue 861 Columbarium & Cemetery 78
Slide 9: Revenue and New Sales (C&C & Funeral)
Revenue and New Sales (C&C & Funeral) NT$ mn Revenue Gross Margin 6,000 100.0% 89.6% 91.9% (1)87.8% 91.2% 91.4% 92.7% 5,062 80.0% (2) 3,814 1,446 81.0% 4,000 29% 3,154 3,106 60.0% 1,342 42.4% 43.2% 43.2% 43.5% 45.7% 40.2% 35% 2,034 40.0% 1,540 1,599 1,530 2,000 3,616 49% 51% 82741% 2,472 84455% 20.0
Slide 10: Cumulative Advance Receipts
Cumulative Advance Receipts Lungyen’s cumulative prepayments reached NT$31.1 billion in 2Q17, and the cumulative installment account receivable was NT$8.7 billion. NT$ mn Cumulative Advance Receipts 50,000 39,421 39,833 40,000 36,649 33,674 34,168 34,505 8,716 8,690 8,090 30,000 8,173 7,631 7,863 20
Slide 11: Asset Allocation
Asset Allocation Portfolio Asset Intangible & Others 10% Leased Assets (Investment) Inventory (C&C) 18% 26% Property, Plant & Deferred Exp. Equipment (PPE) Inventory 18% Portfolio Asset 17% (Property) 72% 13% LT Investment 23% Cash & ST Investment 3% Leased asset Leased area Book value Inventory (Pr
Slide 12: Current Enterprise Value
Current Enterprise Value real estate reappraisal ?? lands for cemeteries ?? reappraisal revenue from cemetery 2.3 Billion (230,000 cases * avg. consumption operations NT$ 10,000 for first 3 years ) Implied Value revenue from columbarium 6 Billion (200,000 cases* Avg. upgrading price upgrade NT$30,00
Slide 13: Development of Wenzhou Project
Development of Wenzhou Project 2019 2018 2017/Q3 Completion & Sales Groundbreaking in parts 2017/January Bidding & Acquisition Build- for land 2016/Aug. up of MGMT Agreement signed 13
Slide 14: Expanding Sales Channels!
Insurance Channel Lungyen, the only partner for insurance Aged care market Only companies! Huge needs Lungyen the largest listed funeral services provider in TW Excellent corp. Nationwide & Expanding governance & financial comprehensive services advantages Sales Channels! 14
Slide 15: Strategic Partner- Sino-Ocean Group
Strategic Partner- Sino-Ocean Group China Life Anbang Public Insurance Insurance Shareholders Co. Ltd. Group 40% 30% 30% Sino Ocean Group Sino-Ocean Gemini Sino Ocean Land Land Ltd. Investments (HK) Ltd. (Domestic) (Holdings) Ltd. 5 Businesses Sino Ocean Sino Ocean Real Estates Commercial Property S
Slide 16: Consolidated Comprehensive Income Statement
Consolidated Comprehensive Income Statement 2Q2017 QoQ & YoY Comparisons NT$M 2Q17 % 1Q17 % QoQ 2Q16 % YoY Revenue 1,274.9 100% 970.2 100% 31.4% 860.6 100% 48.2% COGS 321.0 25.2% 306.0 31.5% 4.9% 332.4 38.6% -3.4% Gross Profits 954.0 74.8% 664.3 68.5% 43.6% 528.2 61.4% 80.6% OP Exp. 396.2 31.1% 304.
Slide 17: Consolidated Comprehensive Income Statement
Consolidated Comprehensive Income Statement 1H2017 YoY Comparison NT$M 1H17 % 1H16 % YoY Revenue 2,245.1 100% 1,701.9 100% 31.9% COGS 626.9 27.9% 663.2 39.0% -5.5% Gross Profits 1,618.2 72.1% 1,038.7 61.0% 55.8% OP Exp. 700.4 31.2% 481.0 28.3% 45.6% Operating Income 917.9 40.9% 557.7 32.8% 64.6% Non
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets NT$M 2Q17 % 1Q17 % QoQ 2Q16 % YoY Current Assets 27,705 53% 27,028 52% 2.5% 26,734 54% 3.6% Cash and Cash Equivalents 227 0% 212 0% 7.1% 203 0% 12.1% Current Financial Assets at Fair Value through Profit or Loss 1,276 2% 1,058 2% 20.7% 1,304 3% -2.1% Inventory 14,473 28%
Slide 19: Lungyen Life Service Corporation
Lungyen Life Service Corporation (5530 TT/ 5530.TWO) Please visit Investor Relations website http://investor.lungyengroup.com.tw/ Please contact us at ir@lungyengroup.com.tw 19