Bizlink Holding Inc. · TWSE:3665
Bizlink — Q1 2024 Earnings Presentation
24 slides from Bizlink's earnings presentation, May 2024
Slide 1: BizLink Holding Inc Investor Presentation 1Q 2024
BizLink Holding Inc 3665.TT Investor Presentation 1Q 2024 Version May 2024 © 2024 BizLink Group BizLink Property 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The contents of this presentation are based on available information, and the Company’s views when made. The information in this presentation may contain descriptions of the future prospects of the Company and its subsidiaries, and are subject to risks and uncertainties, which
Slide 3: I. Corporate Highlights: First Quarter 2024
I. Corporate Highlights: First Quarter 2024 Successful transformation evident ◼ Industrial is our largest segment, accounting for >40% in 2022-2023 versus < 20% in 2019-2021 ◼ Diverse businesses can help reduce impacts from a slowdown in a single business or region ◼ More opportunities to offer high
Slide 4: I. Corporate Highlights: First Quarter 2024
I. Corporate Highlights: First Quarter 2024 Officially past the trough now ◼ Rolling slowdowns and inventory destocking nearing an end in Industrial, IT DataComm, and in EA ◼ Starting our next growth phase: 1Q 2024 sales and profits improved quarter-on-quarter ◼ Increasing our payout ratio reflects
Slide 5: II. Financial Highlights: First Quarter 2024
II. Financial Highlights: First Quarter 2024 TOTAL SALES GPM OPM NET PROFIT EPS 1Q24 1Q24 1Q24 1Q24 1Q24 NT$ 12.43B 26.34% 8.86% NT$ 581M NT$ 3.56 15 30% 25.80% 26.70% 26.34% 26.20% 26.30% 25.50% 24.20% 25% 21.90% 24.52% 14 20% 13 15% 12.10% 8.86% 10.70% 10.60% 10.80% 10% 9.00% 12 7.30% 6.30% 7.09%
Slide 6: II. Financial Highlights: Segment Sales Mix
II. Financial Highlights: First Quarter 2024 Industrial Elect. App. Automotive IT DataComm 2024 1Q 41% 15% 23% 20% QoQ Est. Actual Est. Actual Est. Actual Est. Actual YoY Actual Actual Actual Actual © 2024 BizLink Group BizLink Property 6
Slide 7: II. Financial Highlights: YoY Sales by Segment
II. Financial Highlights: First Quarter 2024 YoY Industrial Sales YoY IT DataComm Sales 400% 60% 300% 40% 200% 20% 100% 0% 3Q22 3Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 4Q22 1Q23 2Q23 4Q23 1Q24 0% -20% 4Q21 1Q21 2Q21 3Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 -100% -40% • Improvement is on the hori
Slide 8: II. Financial Highlights: Sales by Region
II. Financial Highlights: First Quarter 2024 USD sales (% of total), QoQ Change USD sales (% of total), YoY Change + 5% - 11% 40% 167 187 40% 159 40% ~ ~ ~ 45% 45% 167 40% 45% ~ 45% + 5% - 2% - 6% - 3% 82 20% 86 20% 84 20% 82 20% + 8% 91 + 11% 20% 20% 86 84 ~ ~ ~ ~ ~ ~ 20% 82 20% 25% 25% 25% 25% 57
Slide 9: II. Financial Highlights: Mix Improvement and Financial Strategy
II. Financial Highlights: First Quarter 2024 Clear effectiveness from mix improvement ◼ Management efficiency, market position, competitive advantage: flowing through to performance ◼ Gross margins of 26% are relatively normal given scale and mix now - Despite sales being NTD1B less than the 3 quart
Slide 10: III. Operational Highlights: First Quarter 2024
III. Operational Highlights: First Quarter 2024 Moving up in our customers’ supply chain ◼ Interconnect TAM still growing annually but number of healthy suppliers that are growing are shrinking - Multiple external forces throughout past few years challenged us: we prevailed - Customers reducing tota
Slide 11: III. Operational Highlights: Second Quarter 2024 Outlook
III. Operational Highlights: Second Quarter 2024 Outlook Industrial Elect. App. Automotive IT DataComm 2024 QoQ 2Q Est. Est. Est. Est. Capital Eqpt Highlights TMP, Energy New Products SIL HPC Lowlights Factory Auto. Old Products EV Peripherals © 2024 BizLink Group BizLink Property 11
Slide 12: III. Operational Highlights: 2024 Outlook
III. Operational Highlights: 2024 Outlook Near-Term Catalysts Megatrend HPC Drivers High-power & high-speed needs rise High-Value 1Q 2024 sales mix Tailor-Made to drive growth High-end semiconductor and medical Capital Equipment Margin Growth 55% Mature & advanced, more BB/SI has potential to Silico
Slide 13: III. Operational Highlights: 2024 Outlook (Industrial, IT DataComm)
III. Operational Highlights: 2024 Outlook Industrial ◼ Capital Equipment recovery already underway with industry boom in 2025 - Order visibility till end of this year, project visibility till second half of next year - Product development: HVAC + PDU - Market development: non-US customers + more US
Slide 14: III. Operational Highlights: 2024 Outlook (Automotive, Electrical Appliance)
III. Operational Highlights: 2024 Outlook Automotive ◼ Securing more specialized high mix, low volume customers - Product development: battery supplement module assembly - Market development: electric trucks, tractors, motorcycles, ATVs, and more ◼ Silicone is highlight - Product development: lower-
Slide 15: Q&A
Q&A © 2024 BizLink Group BizLink Property 15
Slide 16: APPENDIX: Investment Thesis
APPENDIX: Investment Thesis Producing Locally for Local Demand Applying Our Core Expertise ✓ 34 production sites in 4 regions ✓ Solutions Provider for NorAm, Europe, SEA, East Asia Industrial, IT DataComm, Auto, Elect. App. ✓ Each major region is high-mix and high- ✓ Moving up value chain to supply
Slide 17: APPENDIX: Diversification
APPENDIX: Diversification Industrial Automotive Global Footprint and Capabilities • Business nature: HMLV1 • Business nature: HVLM2 • Capital Equipment • Silicone • Energy • Charging 13 • Healthcare • Non-EV related 6 11 • Factory Automation • Electric Vehicle North Europe • Regions: all 4 regions •
Slide 18: APPENDIX: Bigger Picture Perspective
APPENDIX: Bigger Picture Perspective Objective Building an enterprise with stable growth through all cycles Focused on For Multiple With Sustainability Interconnects Applications in Mind ✓ Segments: Industrial, IT ✓ Diversification Strategy: High- ✓ ESG: Environmental, Social, DataComm, Automotive,
Slide 19: APPENDIX: Corporate Sustainability
Our commitment to sustainability creates long-term APPENDIX: value for us and our stakeholders by helping us ride Corporate Sustainability the green wave, mitigate climate risks, reduce costs, and build brand value. E GHG Emission Our Actions Renewable FTSE-Russell Our Results Consistent Energy gene
Slide 20: APPENDIX: Capital Allocation
APPENDIX: Capital Allocation Fund-Raising History: Five Rounds Free Cash Flow (NTD, M) Tapping into Capital Markets to Boost Strategic Flexibility Building Solid Foundation with Stronger FCF Status No Conversion 5,000 2023 - ECB-5 ($150m), CI (NT$1.15B) 4,000 Partial 2022 - ECB-4 (US$125m) + GDR-2 (
Slide 21: APPENDIX: Condensed Income Statement
APPENDIX: Condensed Income Statement 2019 2020 2021 2022 2023 Sales 23,092,145 22,537,767 28,564,375 53,757,171 51,051,791 GPM 24.36% 25.34% 23.21% 25.65% 24.65% Opex 3,215,562 3,265,296 3,971,071 8,218,883 8,349,633 OPM 10.44% 10.85% 9.31% 10.36% 8.30% Non-OP -74,997 -189,786 -17,006 -253,812 -794,
Slide 22: APPENDIX: Condensed Balance Sheet
APPENDIX: Condensed Balance Sheet 2019 2020 2021 2022 2023 Cash & Equiv. 9,020,132 37.56% 5,360,003 23.59% 3,209,592 12.55% 8,497,568 15.90% 10,627,389 19.43% Inventory 4,077,127 16.98% 4,649,474 20.47% 6,378,838 24.94% 12,323,217 23.06% 10,102,719 18.48% Net A/R 4,836,085 20.14% 5,235,100 23.04% 7,
Slide 23: APPENDIX: Condensed Cash Flow Statement
APPENDIX: Condensed Cash Flow Statement 2019 2020 2021 2022 2023 Starting Cash 3,560,272 9,020,132 5,360,003 3,209,592 8,497,568 Net Cash from Operating 3,060,503 1,871,527 364,965 2,779,419 7,446,277 Cash Flow from Investing PP&E -710,585 -759,861 -1,244,650 -1,877,242 -2,558,729 Others -498,747 -1
Slide 24: Contact us
Upcoming IR Activities Contact us May 27: HK, UBS Conference Jun 6-7: TW, Citi Conference Jun 12: TW, Yuanta Conference Mike Wang Manager, Investor Relations T +886 2 8226 1000 ext. 52663 E mike_wang@bizlinktech.com Stay Connected @BizLinkTechnology Jimmy Hsu Deputy Manager, Investor Relations @BizL