Lucky Cement Co., Ltd. · TWSE:1108
Lucky Cement — Q3 2019 Earnings Presentation
39 slides from Lucky Cement's earnings presentation, Dec 26, 2019
Slide 1: Lucky Cement Corporation Earnings Conference
Lucky Cement Corporation Earnings Conference 2019/12/26 1
Slide 2: Disclaimer
Disclaimer The contents of this presentation are based on the financial statements reviewed or audited by the accountants. The financial statements are prepared in accordance with IFRS. Please refer to the financial statements of Lucky Cement Co., (the Company) for the complete contents and data. Th
Slide 3: Agenda
Agenda Company Profiles Products & Circular Economy Market Performance Review CSR Future Development Q&A 3
Slide 4: Logo Story
Logo Story Mr. Chen Liang-Chuan, the founder started his business in housing construction. He hopes that every young person who wants to get married could have a house, and their life could feel warm and happy. Therefore, the life's goal of Mr. Chen Liang-Chuan is to produce cement with high quality
Slide 5: Company Profiles
Company Profiles • Stock Code : 1108 • Company Name : Lucky Cement Corporation • Date of Establishment : May 7, 1974 • Listed Date : June 6, 1990 • Paid-in Capital：NT$4,047,380,490 • Chairman：Mr. Chen Liang-Chuan • Head Office : 15F, 237 Songjiang Rd., Taipei, Taiwan • Plants：Dongao Plant, Puxin Pla
Slide 6: Company Milestone
Company Milestone • 1974 Lucky Cement Co., established • 1981 Dongao Plant started to operate • 1990 Listed on TWSE • 1992 Merged Puxin Plant • 1996 Launch Slag Powder product in market • 2000 Started Circular Economy • 2008 Horen plant Completed phase 2 expansion • 2008 ISO9001:2008 Certified • 201
Slide 7: Subsidiaries
Subsidiaries Fuyu Development Luckicon Ready-mixed Dasheng Enterprise Company Concrete Factory Co., Ltd Co., Ltd. Lucky Cement Corp., Luckyship Marine 7 Japan Co., Ltd
Slide 8: Production Plants
Production Plants Dongao Plant Puxin Plant Horen Plant Clinker & Cement Cement & Slag Powder Limestone, & Aggregate Clinker 2M ton / Year Grinding 1.4M Ton / Year 6.2M Ton / Year 8
Slide 9: Service Offices
Service Offices Cement Sale % (108.1~11) North：71.6%(Tappei, Taoyuan, Yilan) Taipei 31.0% Taoyuan 38.0% Yilan 2.6% Taichung Hualien 14.6 % 12.2 % Kaohsiung 1.6 % 9
Slide 10: Products & Circular Economy
Products & Circular Economy Cement: Portland I & II limestone Stone Aggregates Slag Powder Quicklime Circular Economy : Replace fuel and raw materials 10
Slide 11: Product & Industry Relationship
Product & Industry Relationship Horen Plant Limestone Construction Clay Dongau Plant Silica Infrastructure Raw Mill Clinker Cement Pyrite Cement Circular Economy Alternative material or fuel Stone Concrete Slag Powder Puxin Plant Luckicon Ready-Mixed 11
Slide 12: Sales Revenue Proportion
Sales Revenue Proportion Periods from Jan to Nov, 2019 Circular Stone Economy 22% 7% Quicklime 2% Cement 66% Slag Powder 3% Resource: Sales Department 12
Slide 13: Cement Supply & Demand
Cement Supply & Demand Million Ton 2019 Jan~Oct domestic cement demand YoY 4.24% domestic supply YoY 5.35%，Imported cement supply YoY 0.12% 20 Porduction 16.8 15.8 16.6 Consumption 14.6 15 13.4 12.3 12.6 12.1 12.0 12.2 11.7 10.8 10.9 10.7 10.2 10.2 10 9.2 9.3 5 0 2011 2012 2013 2014 2015 2016 2017 2
Slide 14: Average Cement Consumption
Average Cement Consumption kg/person 1,400 1,332 ● 1993 is the highest per person 1,200 consumption 1,332 kg ● 2017 is the lowest per person consumption 432kg 1,000 800 600 531 516 524 536 496 453 523 435 432 400 200 0 1977 1993 2011 2012 2013 2014 2015 2016 2017 2018 Year 14
Slide 15: The Statistics of Building License and Construction License
The Statistics of Building License and Construction License 2019 Jan~Oct Building Permit YoY 9.98% 45.00 39.76 38.63 40.00 34.15 32.88 33.98 35.00 31.34 32.60 28.69 29.88 29.92 30.00 26.89 26.24 26.26 25.29 25.35 million m2 25.00 23.22 22.48 20.82 20.00 15.00 10.00 5.00 - 2011 2012 2013 2014 2015 20
Slide 16: The Statistics of Building License Floor Area
The Statistics of Building License Floor Area Unit: m2 35,000,000 40.00% 29,918,386 30,000,000 35.40% 35.00% 27,203,643 30.00% 25,000,000 25.00% 20,000,000 21.75% 20.00% 15,000,000 17.78% 15.00% 10,000,000 9.98% 5,861,325 10.00% 4,700,104 4,976,621 4,631,396 5,000,000 3,420,480 3,860,395 5.00% 0 0.0
Slide 17: Cement Market Share
Cement Market Share Lucky Imported 30% 25.24% 2011.5.30～2022.2.19 25% Twiwan impose an anti-damping tax 91.58% on cement import from China 21.29% 20% 20.35% 19.58% 19.74% 18.42% 15% cement damping from China 14.00% 11.42% 11.26% 11.72% 12.34% 11.84% 10% 9.65% 9.51% 9.57% 9.68% 8.72% 8.75% 8.16% 7.51
Slide 18: Company Cement Sale Trend
Company Cement Sale Trend Unit:10,000 Ton 140.0 120.0 111.6 99.2 89.1 100.0 87.2 2 0 19 expected 88..3 ( Yo Y 1.26 %) 80.0 79.8 60.0 40.0 20.0 0.0 2015 2016 2017 2018 2019 Jan~Oct 108年1～11月本公司石料銷量YoY成長11.87% 18 Source : Lucky Cement - Sale Department
Slide 19: Company Stone Sale Trend
Company Stone Sale Trend 2019 Jan~Nov Stone sale YoY 11.87% North(Keelong、Taipei Port) Import Stone YoY -36.63% 450 422 400 Unit: 10,000 Ton 350 310 300 250 180 200 2 0 19 expect 130 150 119 ( Yo Y 9.24 %) 100 118 50 0 2015 2016 2017 2018 2019 Jan~Oct 19 Source : Lucky Cement - Sale Department
Slide 20: Company Circular Disposal Volumes Trend
Company Circular Disposal Volumes Trend Unit : 10,000 Ton 12.0 11.3 9.6 10.0 9.4 8.0 6.7 6.0 6.0 4.0 2.0 0.0 2015 2016 2017 2018 2019 Jan~Oct 20
Slide 21: Circular Revenue Sale vs Total Revenue %
Circular Revenue Sale vs Total Revenue % 12% 10% 10% 8% 7% 6% 7% 6% 5% 4% 3% 2% 2% 2% 0% 2012 2013 2014 2015 2016 2017 2018 2019 Jan~Oct 21 Source : Lucky Cement - Sale Department
Slide 22: Consolidate PnL
Operating Performance Currency : Million NTD 1,000 Gross Profit 800 Consolidate PnL Operating Profit(Loss) 600 Net Income(Loss) 400 Total Comprehensive income(Loss) 200 0 (200) 2014 2015 2016 2017 2018 2019 Q1~Q3 (400) 單位:新台幣百萬元 2014 2015 2016 2017 2018 2019 Q1~Q3 Revenue 5,099 5,021 4,251 3,434 3,3
Slide 23: Consolidate PnL
Operating Performance Currency : Million NTD 100 Consolidate PnL 80 Gross Profit 60 40 20 0 (20) 2019 Q1 2019 Q2 2019 Q3 (40) (60) 2019 Q1 2019 Q2 2019 Q3 Revenue 834 901 925 Gross Profit 27 70 89 Operating (26) 15 32 Profit(Loss) Net Income(Loss) (30) 14 15 Total Comprehensive (13) 33 20 income(Los
Slide 24: Consolidated Balance Sheet
Operating Performance Currency : Million NTD 2019 Sep 2016 % 2017 % 2018 % % 30 Consolidated Balance Sheet Current Assets 5,361 69% 5,121 71% 4,939 68% 5,051 68% Property, Building & 1,900 25% 1,649 23% 1,877 26% 1,750 24% Equipment Other Assets 492 6% 467 6% 478 7% 596 8% Total Assets 7,753 100% 7,
Slide 25: CSR
CSR Employee Environment Protection Value Circular Society Chain Economy Corporate Sustainability - Corporate Governance 25 rank top 20% among Taiwan public listing companies.
Slide 26: CSR
CSR 1. The Company has fair salary system, employee benefits policies, labor safety and health system, and implements the concept ,"respect for life and pursuit Zero disaster ", to create a harmonious labor relations. 2. ISO45001 Certified on 2019/8/26 3. Various staff education and training, enhanc
Slide 27: CSR
CSR 1. Assist local resident and native people in employment 2. Provide Lucky cement scholarship and sponsor a variety of school activities 3. Emergency assistance for villagers 4. Volunteer for community services including road maintenance and beach clean 5. Assist community building activities 27
Slide 28: CSR
CSR Appreciation of recognition from our Sponsored people 28
Slide 29: CSR
CSR 1. Greening in plants 2. Improve air pollution Prevention by replacing old equipment 3. Implement energy-saving policies by upgrading production equipment. 4 Use recycling water in production process 清水 貯水池 and carwash. 29
Slide 30: CSR
CSR Suppliers： We work with suppliers to improve corporate social responsibility, promote sustainable development of the environment, improve labor rights, safety and health, to safeguard basic human rights. Customers： With professional services and excellent product quality, we establish customer-o
Slide 31: Future Development
Future Development Optimize Logistic Upgrade cement & stone transporting vehicles to enhance dispatching capacity. 31
Slide 32: Future Development
Future Development Rearrange Facilities Rearrange grinding plant and ready mixed plants to optimally utilize assets and serve customers. 32
Slide 33: Future Development
Future Development The Midas Touch With improvement highway system and foreseeable market demand, Horen plant will boom its productivity to create more profits. 33
Slide 34: Future Development
Future Development Circular Economy Cement industry is the heart of circular economy. Through 1400℃ of high temperature and other characteristics, the production process can reduce Toxic gas (such as dioxin). It will be helpful to reduced Greenhouse effect. 34
Slide 35: Future Development
Future Development Activate Assets The Puxin plant was established in 1992 in YangMay county with a land lot about 43,000 m2. it serves cement and concrete customers surrounding TaoYuan. With YangMay city developing for the past decades, resident & commercial buildings dominate city development. Com
Slide 36: Land Development – DaGanLin Project
Land Development – DaGanLin Project 36
Slide 37: Land Development
Land Development Phase 1, , area 4.04 hectare, infrastructure development was completed in 2018. 37
Slide 38: Land Development
Land Development Phase II, area 13.47 hectare, is on grading & reclaiming stage. Soil erosion work is 80% complete. 38
Slide 39: Thank you
Thank you