O-TA Precision Industry Co., Ltd. · TPEX:8924
O-TA Precision Industry — O-TA Investor Conference 2023
66 slides from O-TA Precision Industry's conference presentation, Mar 17, 2023
Slide 1: O-TA Precision Industry Investor Conference
O-TA Precision Industry Co. Ltd. OTC #8924 Investor Conference Investor Relations Contact: 發 言 人_鍾政義協理(Chengyi Chung) E-mail：chungyi@o-ta.com.tw TEL:+886-8-7783855#125 代理發言人_李忠穆協理(Chris Lee) E-mail：chrislee@o-ta.com.tw TEL:+886-8-7783855#298 2023/3/17
Slide 2: Outlines
Outlines ✓ Company Profile ✓ Operational Performance ✓ Industry Status ✓ Future Development 2
Slide 3: Company Profile
Company Profile • Founded：1988. July • Capital：NT$ 838 Millions • Chairman: Lee Kung-Wen, • Vice Chairman：Bill Lin • General Manager：Justin Hsu • Main Business： ✓ Golf Head/Shaft/club assembly ✓ Carbon Bike ✓ Stainless Steel Hardwares ✓ Creative Design of Stainless Steel • Top 1000 Taiwan Listed com
Slide 4: O-TA's Mission
O-TA’s Mission Pursuing sustainability, to be the most creative company in living boutique product and sports equipment. Providing the uppermost values and best services to customers, shareholders, employees, and the society. 4
Slide 5: O-TA Division
O-TA Division From Core technology expansion to continuous Innovation New Composite Innovation Create unit/ GOLF boutique/ values for design customers! Water ware ALLTAS {Design[(Manufacture)Service]} OEM → ODM → IDM 5
Slide 6: Our Customers
Our Customers Offer variety of services (OEM/ODM/IDM)，co-design with customers，output innovative products！ PXG、TITLEIST 、TOUR EDGE … AKIRA、BRIDGESTONE 、HONMA、JAPANA、KASCO、MAJESTY 、MITSUBISHI(shaft-Diamana) 、MIZUNO、ROMARO 、TSURUYA 、YAMAHA、YONEX… 6
Slide 7: Advantages of O-TA
O-TA provides the Best Service for Our Customer! Advantages of O-TA *Continuelly create high value products to be irreplaceable on the market! Customer-oriented，offering “custom”one stop shopping”service! Serving multiple customers with fliexibility! ✓Flexible EPS rapid production system. ✓Providing
Slide 8: Product Technology Development
Product Technology Development (Golf Head→Composite Sports Equipment→Creative Product) Year 1973 Year 1990 Year 1993 Year 2003、2009、2015 Year 2018～2023 ✓ Traditional Casting Stainless steel replaced wooden head Ti plate applied on head and ✓ Forge Ti Wood launched and replaced SS on Wood market ✓ Ca
Slide 9: Advanced R&D ~CAE
Simulationfor Simulation forCOR COR Advanced R&D ~CAE Computer Aided Engineering (CAE) on Golf Head CORCOR模擬 Simulation Simulation for Stress Stress Simulation Simulation for Vibration Vibration Simulation 9
Slide 10: Hitting Test Analysis
O-TA R&D, including CAD (Computer Aided Design), RE (Reverse Engineering), RP (Rapid Prototyping), CAM (Computer Aided Manufacturing), CAE (Computer Aided Engineering), ROBOT/Track Man hitting Hitting Test Analysis test...etc , are the combination of high-standard and high-tech software and hardware
Slide 11: Golf Simulation Room
Golf Simulation Room 1. Increase the integrity of the ball head test and provide various data reports. 2. Increase the diversity of guest activity choices. 3. Improve the knowledge and performance of the ball head for the relevant designers. 4. Promote golf. 11 11
Slide 12: Best Drivers for High Swing Speeds
https://mygolfspy.com/best-golf-drivers-2023/ BEST DRIVERS FOR HIGH SWING SPEEDS FEB. 13 2023 USA O-TA MADE O-TA MADE 12
Slide 13: Hot List 2023
HOT LIST 2023 O- O- TA TA MADE MADE USA O- O- TA TA MADE MADE O-TA O-TA O-TA MADE MADE MADE O-TA O-TA O-TA MADE MADE MADE 13
Slide 14: Hot List 2023
HOT LIST 2023 O-TA MADE USA O-TA MADE O-TA MADE O-TA O-TA O-TA MADE O-TA MADE MADE MADE O-TA O-TA MADE O-TA MADE MADE 14
Slide 15: O-TA Made
O-TA MADE 15
Slide 16: O-TA Made
O-TA MADE 16
Slide 17: Our Customers & Top100
& ToP100 im" @) Our Customers NOW ON TOUR TITLEIST IS THE #1 BALL, DRIVER, HYBRID, UTILITY IRON, IRON, AND WEDGE AT THE OPEN CHAMPIONSHIP 70 31 36 GOLF BALLS DRIVERS HYBRIDS 4 26 32 35 28 43 uTiuity IRONS 21
Slide 18: O-TA
GRARSH Torus JWR A EIT AT BS 00 Fertitta Litheirt: 300
Slide 19: O-TA
GRTARH ree JSTOR RBG AG BS Ti] BRIDGESTONE GOLF Amey, —I DPEATRIET. "B1, B2, ai. EMMGRU & Mitt, Lb, PELS. AIL BE S.KFAN- Pay bEROSNSBURFE. LAY = _ FNTOANIP-A, LPGA HGH ABBR 19
Slide 20: Our Customers
Our Customers TOUR READY WORLD READY? THE NEXT GENERATION SPrZzz0 ST-X 220
Slide 21: Chrome Molybdenum Steel Extreme Casting Technique
O-TA MADE Chrome Molybednum Steel Extreme Casting Technique https://www.youtube.com/watch?v=lPq7241LIg8 21
Slide 22: O-TA Made
O-TA MADE https://www.youtube.com/watch?v=lPq7241LIg8 22
Slide 23: Diamana Series
ToP100 DIAMANA® SERIES
Slide 24: Long-Term Competitive Advantages: Jiangxi Factory
Long-Term Competitive Advantages to outperform others O-TA Jiangxi Factory (Ganzhou, Jiangxi) ✓ Optimize China factory for production Core Technology Control， ✓ Build smart factory (AI Automation) Process Enhancement／ ✓ The new plant is about to expand Practicability、Automation、 ✓ Source management、
Slide 25: Focus on Cost & Technology Management
Cultivating Jiangxi O-TA_Ganzhou already built long-term competition advantages ✓Stable Human Resource , Sufficient electricity, natural gas... etc. ✓Integrated Surrounding Supply Chain • Enterprise Privilege under China Policy： • Reduce the impact of US-China trade war on exporting companies (ex. G
Slide 26: Smart Automation Performance
Smart Automation Performance • Polishing Automation • Automation of Dipping、Cutting、Gating、 Welding、Polishing、Painting… 26
Slide 27: Benefits of Automation
Benefits of Automation ※improve manufacturing cost & shortage of labor ※ Production Stability, Quality Assurance, Manufacturing Efficiency and Effectiveness ✓ Examples for Efficiency & Yield Rate： Auto Shelling System • Stable Casting Quality、Higher Yield Rate • Lower Workload of Labor • Consistent
Slide 28: Honors and Awards of O-TA JiangXi
Honors and Awards of O-TA JiangXi 28
Slide 29: Golf Industry-Academy Cooperation and Bike Donation Events
Golf Industry-Academy Cooperation and Bike Donation Events * Industry-Academy Cooperation and Strategic Alliances with NPTU on Nov. 17, 2022. *Boutique Bike Donation: 12/28 NPTU 12/30 NPUST 29
Slide 30: Save Water Resources, Love, Green Promotion
Save, Water Resources Love, Care for you Living, Green Promotion 30
Slide 31: O-TA Precision Industry Co., Ltd.
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Slide 32: Composites Division
O-TA Precision Industry Co. Ltd. 大田精密工業股份有限公司 複材事業部 Composites Division 領航复材科技(惠州)有限公司 VGT Composite Technology (Huizhou)Co., LTD Company Profile The Application, Design and Manufacturing of Composites 32
Slide 33: Company Profile – VanGuard Composite Technology
Company Profile – VanGuard Composite Technology • Founded：March, 2018 ; Mass Production since March, 2020 • Capital：US$ 4,000,000.00 • Chairman：Kong-Wen, Lee • Team Leader：Eagle/Davis • Main Business： ✓ Composite e-Bike Cycling Parts ✓ Composite Full Suspension Bike/Mountain Bike/Road Racing Bike Cy
Slide 34: VGT - Composite Core Technology
☉VGT - Composite Core Technology CAD CAE Composite Materials CAM core Technology technology Process design Experimental and Test -80 AT-26052 BB扭扭扭扭扭扭 -100 -120 FORCE (kgw) -140 -160 -180 -200 -220 -14 -12 -10 -8 -6 -4 -2 0 2 DISP. (mm) 34
Slide 35: VGT Technologies Since 2003
VGT TECHNOLOGIES- Since 2003 INDA ~ VGT Year Weight (gram) Road Frame Technology Composite Materials Achievement *Mass Production of 2003-2005 1,200 grams Bladder Molding Process 24T/T700 ONIX/Spain *UCI Champion -2007 24T/T700 + 2006-2010 1,000 grams Bladder Molding Process 30T/T800 *Olympic Champ
Slide 36: Our Customers
⟴Our Customers ✓ EU ✓ WILIER 、 ORBEA 、DE ROSA、CARRERA、DT-SWISS 、 GPRAG 、 CINELLI 、 MSC 、 VDB 、 INTERSENS 、 BATTAGLIN 、 FANTIC、GUERCIOTTI … ✓ JP & US ✓ BRIDGESTONE、PODIUM、INTERMAX 、HATTORI ✓ IBIS 、FELT 36
Slide 37: VGT - Main Products: Carbon Bike Parts
☉VGT - Main Products: NEW Composite Electric Carbon Bike Parts Bike NEW Full-Suspension e- Bike NEW HYBRID Suspension e-Bike 37
Slide 38: New Lite Full Suspension Composite e-Bike
NEW Lite Full Suspension Composite e-Bike NEW Comfortable (Elastomer) Composite Bike *Ultra-lightweight *SUPER LITE and comfortable car (super-elastic Special Elastomer SUSPENSION e-Bike *FRAME (weight) ---- structure developed using new material 1,490 grams technology) *New Material & Construction
Slide 39: Bike of the Year 2022 in Japan
☉Honor Pride: Bike of the year 2022 in Japan Model 1: ANCHOR/RP9 ---- BSC (JAPAN) Model 2: PHIBRA DISC ---- CARRERA (ITALY) 39
Slide 40: Ice Hockey Products, 3C Products
Ice hockey products 3C products iPAD B40 Frame 40
Slide 41: VGT Future Development
<O-TA Composites Division-VGT Future Development> ✓ Innovative research and development (new EPUS process), continuous improvement to enhance business performance, and strengthen production efficiency and competitiveness. ✓ Step into the automobile-aviation insulation composite material/composite ma
Slide 42: Operating Performance
GRTRGH were AWD RE TRIE AT BRS O-TA PRECISION INDUSTRY Co ~ LTD. Operating Performance
Slide 43: Overview of Past 5-Year Operations
Overview of past 5-year Operations Operating Revenue (NT$100 million) Net Income(NT$100 million) EPS(NT$dollar) 90.00 25.00 80.00 21.40 20.15 70.00 20.00 60.00 15.00 50.00 40.00 10.00 30.00 5.81 6.50 20.00 5.00 10.00 0.00 0.30 0.00 Y2018 Y2019 Y2020 Y2021 Y2022 Operating Revenue (NT$100 million) 37.
Slide 44: Fast Growing Company on CommonWealth Magazine
Fast Growing 100 company on CommonWealth Magazine (Issue 754) ★in 2021, OTA was the ~ No. 5 fast growing in Sales Revenue No. 6 fast growing in EPS • O-TA Precision_Invisible Champion 2.0 • Established 1988 • Chairman: Lee, Kung-Wen • Main Business: Golf ODM Manufacturing • 2021 Sales Revenue: 7.88
Slide 45: O-TA Consolidated Income Statement
O-TA Consolidated Income Statement 1/1~12/31 (For the Nine Months Ended September 30) Expressed in Thousands of New Taiwan 差異 diff. Dollars,Except for Earnings Per Common 1/1~12/31, 2022 1/1~12/31, 2021 Share 金額 Amount % 金額 Amount % 金額 Amount % 營業收入 7,700,322 100.0% 7,880,132 100.0% -179,810 (2.3%)
Slide 46: Operating Revenue vs Net Income
Operating Revenue VS Net Income Unit：NT thousand dollars 2,500,000 2,338,895 2,273,633 2,139,191 2,123,139 2,045,646 2,000,000 1,708,067 1,530,221 1,500,000 1,421,662 1,000,000 622,838 507,493 538,878 469,244 500,000 386,345 369,901 323,375 261,525 0 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3
Slide 47: O-TA 8924 Profit Profile
O-TA 8924 Profit profile EPS / Gross Margin / Profit Margin 10 40% 33.3% 33.3% 32.0% 31.1% 30.6% 29.6% 30% 25.7% 26.6% 23.7% 25.4% 22.7% 22.9% 22.3% 21.7% 5 20% 18.1% 17.1% 10% 3.88 5.60 6.06 4.61 3.12 7.43 4.41 6.44 0 0% 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 每股盈餘(元) EPS 毛利
Slide 48: 2017-2022 EPS and Dividends
2017-2022 EPS and Dividends Unit：NT dollars 25.00 450% 400% 21.4 400% 20.15 20.00 350% 300% 15.00 13.7 12.85 250% 200% 10.00 8.74 6.5 150% 5.81 5 5.00 3.8 100% 3.4 68% 65% 77% 60.05%50% 39% 0.3 1.2 0.00 0% 106年度 2017年 107年度 2018年 108年度 2019年 109年 2020年 110年 2021年 111年 2022年 基本每股盈餘(元) 8.74 0.3 5.81 6
Slide 49: Industry Overview
Industry Overview • Health topics increase business opportunities • According to international Plunkett Research statistics，global sports and leisure business opportunities value around 1.5 trillion USD per year。Sports prevail. 49
Slide 50: Golf Industry Status
Golf’s Biggest Participation Jump February 23, 2023 Golf Industry Status Post-epidemic life style change !Go Go golfing! ✓GOLF is a safe ourdoor activity ✓According to the NGF statistics， the construction of golf population changed in the second quarter of 2020. Back to the growing trend & benign
Slide 51: Golf Around the World
Golf Around the World Golf player GLOBAL There are 66.6 million golf players in the world, according to the latest stats posted by the R&A and Sports Marketing Survey in December 2021. Did you know that 82% of countries worldwide have golf courses – from American Samoa to Zambia? Or that there are m
Slide 52: Optimistic Future Development in Global Golf Market
Optimistic Future Development in Global Golf Market https://www.prnewswire.com/news-releases/golf-clubs-market-2023-2027-a-descriptive-analysis-of-five-forces-model-market-dynamics-and-segmentation---technavio-301727930.html GLOBAL 52
Slide 53: Optimistic Future Development in US Market
Optimistic Future Development in US Market https://www.grandviewresearch.com/industry-analysis/golf-equipment-market USA 53
Slide 54: Optimistic Future Development in US Golf Market
Optimistic Future Development in US Golf Market Source：https://www.ngf.org 54
Slide 55: Japanese Market Optimistic View
Japanese Market Optimistic View ✓Demand>Supply • Due to COVID-19, demand exceeded supply in 2020, but hard to see if stricter regulations can increase the golf participation • Less price war, less discount, sales trend in higher price not in quantity • Cheaper clubs↓ Expensive clubs↑ • Golf particip
Slide 56: Japanese Market Optimistic View
Japanese Market Optimistic View ✓How to remain the 810,000 golfers and get more new golfers： • No price war, sound profit, direct sale trend • Decrease personal dedicated club-testing service to increase profit; Big data application can find the right club for individuals. • 「Experiencing」business o
Slide 57: Future Development
GRTRGH Jorma AWD RE TRIE AT BRS O-TA PRECISION INDUSTRY Co ~ LTD. Future Development
Slide 58: Continuous Collaboration with Customers
✓Continuous collaboration with customers、 performance simulation、high added value custom R&D Productivity Soft Power fitting design and manufacturing service. OTA Commit to innovation, high tech materials, and construction design！ The highest ethical standards in business operation and customer serv
Slide 59: Automation Evolution
Growth Strategy Automation Evolution Leverage production automation by high-tech industry Cost down reinvestment Labor cost Environmental impact Employment stability reduction countermeasures Workplace improvement Retaining talent employees Complete employee benefits More flexible production capacit
Slide 60: Ensure High Gross Margin
✓Ensure high gross margin！ Lean Management, Automation,Cost reduction, Lead-time improvement、Efficiency & Effectiveness elevation 60
Slide 61: O-TA Growth Strategy: Smart Manufacturing from Automation to Autonomy
O-TA Growth Strategy Smart Manufacturing from Automation to Autonomy ～2025 ～2030 10+ years Advanced Hyperautomation Autonomy automation Production technology・Robotization of human works ・Digital Twin ・stable AI utilization ・Digitalization ・Machine Learning（ML） progress ・Smart Technology enhancement
Slide 62: R&D Innovation, High-Added Value Products and Services
O-TA R&D_innovation，high-added value products and services MADE Current Developments： 1. New Materials 2. New Construction, new Design 3. Simulation Experiment Analytic System 4. 12 granted patents＋11 patents in application 5. Open models Adjutable Back hosel piece Weight Trough Weight plug Face Bod
Slide 63: Will Launch Innovative New Product
Will launch innovative new product to replace current hot heads on the market (patented technology) 63
Slide 64: ESG Highlights
ESG Highlights: (E，environment) (S，social) (G，governance) O-TA Stable Operation→Brand Customer Trust&Appreciaton→Sales NT$7.7Bn. High base_Net Profit NT$1.79Bn.、EPS 21.4、Profit rate 23% → Profit Record High Sustainable Development Committee Sustainable Environment, Social Welfare,Governance,Pr
Slide 65: WR DS RR RA HR EES PR
WR DS RR RA HR EES PR 65
Slide 66: Thanks for your attention
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