Tatung Co. · TWSE:2371
Tatung — Investor Presentation (December 2017)
24 slides from Tatung's investor presentation, December 2017
Slide 1: Tatung Company
Tatung Company (2371 TT) Integrity, Honesty, Industry, Frugality December 2017
Slide 2: Tatung’s Main Objectives
Tatung’s Main Objectives We are Taiwan’s leading provider of integrated solutions for Mechatronic projects, including turnkey power generation, smart grid, corporate energy management systems, solar energy, ICT and smart monitoring systems. For our core business, we continue to concentrate on ou
Slide 3: Tatung’s Core Strategic Initiatives
Tatung’s Core Strategic Initiatives Structural Structural Improvement in Improvement in Tatung Core Business Investment Operations Portfolio Focus on Smart Asset IoT Systems Development and Green Energy 3
Slide 4: Tatung’s Core Strategic Initiatives
Tatung’s Core Strategic Initiatives Structural Structural Improvement in Improvement in Tatung Core Business Investment Operations Portfolio Focus on Smart Asset IoT Systems Development and Green Energy 4
Slide 5: Tatung’s Core Businesses
Tatung’s Core Businesses • System Integration: Providing ICT systems to help offices, factories and home buildings for energy saving. We are one of the few system integrator with scale in Taiwan. Systems • Smart Solutions：Including smart meters and AMI systems for electricity, Group focusing on micr
Slide 6: 3 Years of Structural Improvement in Core Earnings
3 Years of Structural Improvement in Core Earnings We have been able to achieve the following: Higher Overall Gross Margin • By phasing out low-margin products, our gross margin rate increased to 13.3% in 9M17 from 8.2% in 2014, lower revenue but higher gross margin. OP level close to breakeven • Op
Slide 7: 4-year Performance of Core Businesses
4-year Performance of Core Businesses Revenue Operating Profit NT$ mn Revenue NT$ mn Operating Profit 30,000 - (51) (32) (200) 21,295 20,000 18,151 17,260 (400) 12,773 (600) 10,000 (800) (1,000) (875) (966) - (1,200) 2014 2015 2016 9M17 2014 2015 2016 9M17 Note: 9M17 is based on unaudited company ac
Slide 8: Tatung’s Core Strategic Initiatives
Tatung’s Core Strategic Initiatives Structural Structural Improvement in Improvement in Tatung Core Business Investment Operations Portfolio Focus on Smart Asset IoT Systems Development and Green Energy 8
Slide 9: Structural Improvement in Investment Portfolio
Structural Improvement in Investment Portfolio • In 2016 and 2017, we Total Investment Income completed asset revitalization NT$ mn and transformation for Tatung Electronics (s) Pte Ltd and Tatung México, S.A. De C.V. 2,018 1,255 • Taiwan Telecommunication Industry Co. has ceased -838 operations. Li
Slide 10: Future Plans for Investment Portfolio
Future Plans for Investment Portfolio Continue to dispose of non-core and losing businesses • For investments that are continuously loss-making or do not fit our mid/long term strategy, we will downsize, change operation strategies or look for opportunities for sale or liquidation. Continue to impro
Slide 11: Tatung’s Core Strategic Initiatives
Tatung’s Core Strategic Initiatives Structural Structural Improvement in Improvement in Tatung Core Business Investment Operations Portfolio Focus on Smart Asset IoT Systems Development and Green Energy 11
Slide 12: Tatung Smart Manor (Banchiao Phase I Plant Development Plan)
Tatung Smart Manor (Banchiao Phase I Plant Development Plan) • Land Area: 4,095 ping • Gross Floor Area: 25,620 ping • Total Estimated Sales: NT$10bn • Expected project timeline: - Pre-sale closed with 90% sold by 2Q 2016 - Construction began in November 2015 - Completion and revenue booking: Comple
Slide 13: Banchiao Phase II & III Plant Development Plan
Banchiao Phase II & III Plant Development Plan Site layout plan: 1號公園 4米人行步道 2號公園 • Land area: 4,970 ping for phase II, 8 米 8 米 7,220 ping for phase III 第二期 道 道 路 路 • Gross Floor Area: around 75,000 ping in total 10 12米道路 • Expected timeline for phase II: 米 道 第三期 3號公園(兒童遊樂場) 路 The timing for pre-sal
Slide 14: Tatung’s Core Strategic Initiatives
Tatung’s Core Strategic Initiatives Structural Structural Improvement in Improvement in Tatung Core Business Investment Operations Portfolio Focus on Smart Asset IoT Systems Development and Green Energy 14
Slide 15: TATUNG Smart Solutions for Smart City
TATUNG Smart Solutions for Smart City 15
Slide 16: Focus on Green Energy
Focus on Green Energy • All of our products are designed and manufactured under the concepts of green energy, energy-saving, high efficiency, and water-saving. • Focus on green energy, mainly in solar Energy. • Installation target for solar systems aims at 80MW this year. 16
Slide 17: The Tatung Vision
The Tatung Vision TATUNG
Slide 18: The Tatung Vision
The Tatung Vision • We aim to become one of Asia’s leading turnkey providers of integrated mechatronic systems and total solution provider for energy-saving systems. • Tatung’s strategy and goals for smart IoT • Become a leading player in Smart City in Taiwan • Use the deployment experiences in Taiw
Slide 19: Action Plans for Shareholders’ Expectations
Action Plans for Shareholders’ Expectations • We will continue to dispose of non-core related and/or underperforming business subsidiaries. • SCAD will continue to realize the value of our real estate assets via development projects. • We pledge to improve corporate governance and transparency. • Ad
Slide 20: Company Financials
20 Company Financials TATUNG
Slide 21: Financial Highlights
Financial Highlights EPS ( NTD) Net Income (NT$ million) ROE % 0.16 0.22 1.1 2.2 (0.70) (1.74) (1.03) -4.8 (1.35) 364 492 -7.8 -9.5 -12.1 -1,611 -2,344 2012 2013 2014 2015 2016 9M17 -3,075 -4,019 2012 2013 2014 2015 2016 9M17 Source: Tatung’s consolidated financial reports 21 21
Slide 22: Five-year P&L (Consolidated)
Five-year P&L (Consolidated) YOY (%) NT$ million 2012 2013 2014 2015 2016 9M17 2012 2013 2014 2015 2016 9M17 Sales 106,099 112,927 112,609 94,744 77,678 55,731 (27.5) 6.4 (0.3) (15.9) (18.0) 15.2 Revenue Gross Profit 525 12,278 15,884 6,044 10,587 9,317 (92.6) 2,238.8 29.4 (61.9) 75.1 (28.7) OP Prof
Slide 23: Five-year Balance Sheet (Consolidated)
Five-year Balance Sheet (Consolidated) YoY (%) NT$ million 2012 2013 2014 2015 2016 9M17 2012 2013 2014 2015 2016 9M17 TOTAL ASSETS 206,143 203,655 213,827 201,919 238,399 220,938 (8.2) (1.2) 5.0 (5.6) 18.1 8.7 Cash 24,401 23,193 30,140 27,131 42,687 30,168 (21.7) (5.0) 30.0 (10.0) 57.3 135.4 NR & A
Slide 24: ng.com TATUNG
ng.com TATUNG