Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Investor Presentation (April 2023)
26 slides from Zhen Ding Technology's investor presentation, Apr 14, 2023
Slide 1: Zhen Ding Technology Holding Investor Presentation
Zhen Ding Technology Holding (4958 TT) Investor Presentation April 14th, 2023
Slide 2: Safe Harbor Notice
Safe Harbor Notice ◼ Zhen Ding Technology Holding′s statements of its current expectations are forward looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. ◼ Except as required by law, we un
Slide 3: Zhen Ding (ZDT) At a Glance
Zhen Ding (ZDT) At a Glance NT$171.4 Bn NT$106.1 Bn 16.4% #1 Revenue in 2022 Market Cap as of 10Y Average ROE (+10.5% YoY) Mar 29 th , 2023 PCB Manufacturer Worldwide +12% Revenue Breakdown – By Applications NT$171.4bn 2012-2022 +10.5% YoY NT$155.0bn +18.1% YoY 4.0% Revenue CAGR 3.2% 2006 Founded 4.
Slide 4: Agenda
1 Company Strategy AGENDA 2 Business Roadmap and Execution 3 4Q22 & 2022 Financial Results 4
Slide 5: Company Strategy
GD BE RAT HE Zhen Ding Tech. Holding Company Strategy
Slide 6: 2022 Review
2022 Review 1 Revenue increased by 10.5% YoY, achieving our target of double-digit growth: Despite facing challenges from the macro environment, we have kept working with global tier 1 customers and growing with them. Net income increased by 50% YoY, achieving our target of “net income growth being
Slide 7: ZDT Has Maintained Robust Revenue Growth
ZDT Has Maintained Robust Revenue Growth 2022 Global Top 10 PCB Companies Revenue Trends Unit: US$ million 6000 臻鼎 Zhen Ding 5000 No. 2 No. 3 4000 No. 4 3000 No. 5 No. 6 2000 No. 7 1000 No. 8 No. 9 0 No. 10 Source：NT Information；Prismark (2023/02) 7
Slide 8: Market Share Gain with Stable Operation and Profitability
Market Share Gain with Stable Operation and Profitability ZDT: Continued Market Share Gain in the Global PCB Market Stable Profitability 毛利率 Gross Margin Unit: % 23.3% 7.0% 22.1% 22.7% 6.8% 6.8% 20.3% 19.7% 19.5% 18.4% 18.9% 19.2% 16.3% 6.3% 6.3% 15.8% 15.2% 6.1% 2011 2012 2013 2014 2015 2016 2017 2
Slide 9: One ZDT: Aim to Reach 10% Global PCB Market Share by 2030
One ZDT: Aim to Reach 10% Global PCB Market Share by 2030 2022 Revenue by Application 2025 Target Revenue by Application Aim to Reach 10% Global Market Share by 2030 Mobile 10.0% Automotive Radar/Base 行動通訊, 其它, Others, Communication Station/Server/Others, 4.0% IC Substrate, 35%+/- 50%+/- 3.2% Comput
Slide 10: Continued Capacity Expansion, Pursuing Stable Growth
Continued Capacity Expansion, Pursuing Stable Growth Capex Capex/Sales (%) Unit：NT$ million 000 20.1% 21.0% 000 16.5% 16.9% 31,149 16.0% 000 13.5% 13.8% 13.5% 29,032 11.8% 11.7% 000 21,645 11.0% Early deployment 9.0% 000 6.7% 7.3% of production 6.2% 16,224 16,211 capacity to meet 6.0% 000 12,747 cus
Slide 11: Commitment to EPS + ESG – Improvement in ESG Ratings
Commitment to EPS + ESG – Improvement in ESG Ratings S&P Global ESG Rating Sustainalytics ESG Risk Rating In 2022, Zhen Ding’s S&P ESG Score improved to 71 and was Zhen Ding’s Sustainalytics ESG Risk Ratings improved from 20.9 selected as a member of the S&P Global Sustainability Yearbook. to 17.8,
Slide 12: Business Roadmap and Execution
Business Roadmap and Execution 12
Slide 13: PCB Markets will Continue to Grow
PCB Markets will Continue to Grow 100% 80% ICSSubstrate IC 60% HDI 40% FPC+Module FPC 20% RPCB (Multilayer) RPCB 0% 2017 2018 2019 2020 2021 2022(E) 2023(F) 2024(F) 2025(F) 2026(F) 2027(F) Unit: US$ million 2022-27 Product Item 2017 2018 2019 2020 2021 2022(E) 2023(F) 2024(F) 2025(F) 2026(F) 2027(F)
Slide 14: Five Major Global Manufacturing Campuses
Five Major Global Manufacturing Campuses Multiple manufacturing campuses to fulfill clients’ needs China Qinhuangdao Qinhuangdao Park BT Substrate Park (FPC & advanced module /SLP High end HDI) China Huai’an India Huai’an Park 1 Huai’an Park 2 Huai’an Park 3 (RPCB/HDI) (FPC & advanced (High-end HDI/
Slide 15: Capacity Expansion Plan: ABF Trial Production Yield Comparable to Tier 1 Peers
Capacity Expansion Plan: ABF Trail Production Yield is Comparable to Tier 1 Peers Qinhuangdao BT Substrate Fab: Shenzhen ABF Substrate Fab: FCBGA FC-CSP/WB-CSP/Memory Kaohsiung Luzhu Science Park: Huai’an Park 3: High-end HDI/MSAP FPC and Advanced Module Production Line 15
Slide 16: IC Substrate & Huai'an Park 3 Capacity Expansion Plan
IC Substrate & Huai’an Park 3 Capacity Expansion Plan 2023 2024 2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Installation Fab 1 SZ ABF (Mid to high-end Sample certification Substrate products) Plant Mass production, target yield: comparable to tier 1 peers Full utilization, target yield: comparable to t
Slide 17: Business Outlook
Business Outlook Based on current business outlook, management targets: ⚫ 2023 Revenue: About flat, but positive on 2024-2025 demand ⚫ IC Substrate Goals: NT$ 60 bn >50% 15%+/- Top 5 Capex for IC Substrate: Revenue from IC Substrate: Revenue from IC Substrate: IC Substrate Market Share: Plan to inve
Slide 18: 4Q22 & 2022 Financial Results
4Q22 & 2022 Financial Results 18
Slide 19: Consolidated Income Statement
Consolidated Income Statement (Unit: NT$ million, unless otherwise stated) 4Q22 3Q22 4Q21 QoQ (%) YoY (%) Revenue 52,902 50,004 56,442 5.8% -6.3% Gross Profit 13,913 12,985 12,167 7.1% 14.4% Gross Margin 26.3% 26.0% 21.6% +0.3ppts +4.7ppts Operating Expenses 5,219 4,918 3,864 6.1% 35.1% Operating Pr
Slide 20: 2022 Financial Summary
2022 Financial Summary (Unit: NT$ million, unless otherwise stated) 2022 2021 Change YoY% Revenue 171,356 155,022 16,334 10.5% Gross Margin 23.3% 19.7% +3.6ppts Operating Profit 22,447 15,781 6,666 42.2% Operating Margin 13.1% 10.2% +2.9ppts Net Income 20,535 13,694 6,841 50.0% Net Margin 12.0% 8.8%
Slide 21: Quarterly Trends
Quarterly Trends Revenue Gross Margin (%) Unit: NT$ million 2021 2022 2021 2022 -6% YoY 26.0% 26.3% +20% YoY 56,442 21.6% 52,902 21.1% 19.1% 50,004 18.8% 16.2% +25% YoY +16% YoY 41,619 17.5% Net Margin (%) 34,534 14.3% 33,915 13.0% 29,768 27,193 10.8% 10.4% 12.2% 8.2% 5.1% 3.7% 10,000 1Q 2Q 3Q 4Q 1Q
Slide 22: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 2022 Revenue NT$171.4bn 2021 Revenue NT$155.0bn +10.5% YoY Automotive Radar/Base Station/Server/Others, 4.0% Automotive Radar/Base IC Substrate, Station/Server/Others, 3.2% IC Substrate, 4.2% 3.2% Computers and Mobile Consumer Communication, Computers and Electron
Slide 23: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2022-12-31 2021-12-31 Change Amount % Amount % Amount % Cash and Cash Equivalents** 57,599 24.8% 35,179 18.0% 22,420 +6.8ppts Notes & Accounts Receivable 30,529 13.1% 38,669 19.8% (8,140) -6.7ppts Inventories 17,725 7.6% 17,675 9.0% 50 -1.
Slide 24: 2011-2022 Financial Summary
2011-2022 Financial Summary Unit: NT$ million Period 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue 44,280 55,369 64,483 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 Gross Profit 6,993 10,775 11,894 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537
Slide 25: Q&A
GD BE RAT HE Zhen Ding Tech. Holding Q&A 25
Slide 26: Thank You
- H) ean THANK YOU
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