Walsin Lihwa Corporation · TWSE:1605
Walsin Lihwa — Q2 2017 Earnings Presentation
12 slides from Walsin Lihwa's earnings presentation, Feb 23, 2018
Slide 1: Walsin Lihwa Corporation Q2 Investor Conference
Walsin Lihwa Corporation Q2 Investor Conference 1 Strictly for internal use
Slide 2: Disclaimer
Disclaimer Walsin’s statements of its current expectations are forward looking statements subject to significant risks and uncertainties and actual results may differ materially from these forward-looking statements. Except as required by law, Walsin undertakes no obligation to update any forwar
Slide 3: Agenda
Agenda Profits in recent years P4 ~ P5 Profits in first-half year P6 Wire and cable business P7 Stainless steel business P8 ~ P10 Commercial real estate business P11 Summary P12 3 Strictly for internal use
Slide 4: Profits in Recent Years
Profits in Recent Years - Profits of Manufacturing Business Units Improved Annually NTD millions 2013 2014 2015 2016 Unit: NTD millions Net income by segment EBITDA 1,073 6,244 5,120 8,332 4,000 Stainless steel Adjusted EBITDA to exclude impairment 3,611 7,154 5,524 8,786 3,000 charges Wire and cabl
Slide 5: Profits in Recent Years
Profits in Recent Years - Improvement Mainly Comes from Stainless Steel Business 900 Unit: KMT NTD millions 2013 2014 2015 2016 Sales volume 800 Net income - 700 stainless steel & 1,659 1,604 2,138 2,985 600 wire and cable Adjusted EBITDA to 500 Stainless Steels exclude impairment 3,611 7,154 5,524
Slide 6: Profits in First-half Year
Profits in First-half Year NTD millions 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 Net income 905 1,050 1,411 1,202 853 657 Unit: NTD millions EPS (NTD) 0.26 0.30 0.42 0.35 0.26 0.20 750 Stainless Profits of Stainless Steel Business Net income by segment steel 600 decreased in Q2 due to a sharp drop in Wire an
Slide 7: Wire and Cable Business
Wire and Cable Business Stable profits for existing products 25% 20% Power cable 15% Domestic industry 10% growth Enhance service and relationship 5% rate with customers in construction 0% Walsin market 2013 2014 2015 2016 industry to increase market share -5% share Development on industrial
Slide 8: Stainless Steel Business – Rod Products in Taiwan
Stainless Steel Business – Rod Products in Taiwan Sales volume and price of current products are stable Increase sales of high-value products by adding High Reduction Machine, expecting to make the investment in second half of next year Improve product quality of current products R&D and manuf
Slide 9: Stainless Steel Business – Rolled Coil Products in Taiwan
Stainless Steel Business – Rolled Coil Products in Taiwan In Q2, price and sales volume Unit: NTD of rolled coil products were affected by Chromium price Domestic cold rolled price Domestic No. 1 price and the increased production 70,000 capacity of the cold-rolled coil 65,000 products in China. P
Slide 10: Stainless Steel Business – Mainland China
Stainless Steel Business - Mainland China Mainland China Production of a large number of intermediate furnaces were suspended due to Mainland’s plan to cut excess capacity and implementation of Industrial Green Development Plan (2016-2020). Demand and supply of the market became gradually stable
Slide 11: Commercial Real Estate Business
Commercial Real Estate Business Selling price Type Status Area(KM2) Remarks (RMB millions) Closing 41.7 1,080 Revenue recognized in 2014 Resident Pre-sale 28.7 1,200 Expect to close in 2H 2017 For sale 53.9 NA Excluding 700 parking spaces Closing 93.0 1,320 Revenue recognized in 2012 Pre-sale 60.6 1
Slide 12: Summary
Summary With the development of globalization and information technology, market volatility has accelerated; overcapacity and trade protectionism has become the norm of stainless steel and wire and cable industry. To overcome the challenge, other than focusing on the current core business, the Com