Tatung Co. · TWSE:2371
Tatung — Q3 2022 Earnings Presentation
48 slides from Tatung's earnings presentation, Dec 28, 2022
Slide 1: Tatung Company 2022 Third Quarter Investor Conference
Tatung Company 2022 Third Quarter Investor Conference Stock Code：2371 2022-12-28 Enabler of Digital & Energy Transformation
Slide 2: Disclaimer
Disclaimer The predictive information mentioned in the present briefing and released simultaneously is based on the information obtained by the company via internal and external sources. The operating outcomes, financial conditions and business results which actually occur in the future, might possi
Slide 3: Enabler of Digital & Energy Transformation
Enabler of Digital & Energy Transformation 3
Slide 4: Enabler of Digital & Energy Transformation
Enabler of Digital & Energy Transformation 4
Slide 5: Sustainable Energy and Corporate Social Responsibility awards
Sustainable Energy Tatung heavy electric plant was honored with ”Energy Saving Leadership Award 2021” as the Golden Winner by Bureau of Energy, MOEA. Corporate Social Responsibility Tatung 3C was honored with “Trusted Brand 2022 Gold Award” by Reader’s Digest. Enabler of Digital & Energy Transformat
Slide 6: Agenda
AGENDA TOPIC PRESENTER I. Industry Position and Business Strategy Chin-Lai Wang President II. Operational Result and Financial Performance Yi-Ting Liao Director of Accounting Department III. Core Business’s Direction of Strategic Development i. Power Business Group’s Direction of Strategic Jian-Pyng
Slide 7: I. Industry Position and Business Strategy
I. Industry Position and Business Strategy Enabler of Digital & Energy Transformation 7
Slide 8: Three Arrows and Sustainable Development
Three Arrows and Sustainable Development Up-Governance Strengthen corporate governance Advance sustainable development Mid-Management Calibrate and restructure organization Upgrade and transform the industry Down-Supervision Strengthen subsidiaries’ supervision and management Boost grand
Slide 9: Tatung's Positions of Industrial Shareholdings
Tatung’s Positions of Industrial Shareholdings Electric New Consumer Real Power Energy Electronics Estate Major Subsidiaries （Electro-Deposition （System Integration （Electronic （Information and Other and Information Components） Communication） Other Coating） Domestic Security） Overseas Elitegroup Tat
Slide 10: Four Core Business Advantages
Four Core Business Advantages Electric Heavy Electrical Equipment Power Motor Cable 34% Smart Meter New Smart Energy Energy Solar Energy Energy Storage System 26% Consumer Appliance Electronics Advanced Electronics 28% Real Estate Real Estate 12% Enabler of Digital & Energy Transformation 10
Slide 11: Three Directions of Management Strategy
Three Directions of Management Strategy Expand Lean Optimizie developments of developments of efficiencices of core business investment business upgrade and transformation Enabler of Digital & Energy Transformation 11
Slide 12: Financial Structure and Transformation Leapfrogging
Financial Structure and Transformation Leapfrogging Return of Benefits： Lost Control NT$8.4 billion Solvency Improvement Current Ratio ：179% Quick Ratio：98% Over CPT Contribution to EPS： (20223Q) Debt Ratio ：50% NT$3.6 Implement of Industrial Top 10 Banks Participation Consolidated Sha
Slide 13: Business Performance and Opportunity Reports
Business Performance and Opportunity Reports Heavy Electrical Equipment Cable Motor Manufacturer of All-Round Power Product Continuous Improvement in Automation Production Capacity Generation, Transformation, Transmission, Technology Distribution, and Power Cables Research and Development 1. “Taipow
Slide 14: II. Operational Result and Financial Performance
II. Operational Result and Financial Performance Enabler of Digital & Energy Transformation 14
Slide 15: Statements of Comprehensive Income 1Q~3Q 2022
1. Statements of Comprehensive Income-1Q~3Q 2022 Items 1Q~3Q22 1Q~3Q21 YoY (NT $Thousands) Net Sales 21,708,294 22,040,757 -1.5% Gross Profit 5,596,290 5,414,983 +3.3% Sales, General and Research Expense 4,129,002 4,509,005 -8.43% Expected credit losses and others 1,084,303 3,526 +30,651.64% Operati
Slide 16: Details of Non-Operating Gain (Loss) 1Q~3Q 2022
2. Details of Non-Operating Gain (Loss)-1Q~3Q 2022 Items 1Q~3Q22 1Q~3Q21 YoY (NT $Thousands) Interest Income 56,181 53,036 +5.9% Dividend Income 43,364 42,212 2.7% Gain on Disposals of Investments 12,108,340 0 +100.0% Gain on Disposals of Non-Current Assets 0 558,416 -100.0% Foreign Exchange Gains (
Slide 17: Balance Sheet and Key Indices
3. Balance Sheet and Key Indices Items 2022.9.30 2022.6.30 2021.9.30 (NT $Thousands) Amount % Amount % Amount % Cash and Cash Equivalents 7,956,365 7% 8,837,709 8% 7,204,683 7% Inventories 15,096,852 14% 14,503,224 12% 12,771,640 12% Property, Plant and Equipment 25,468,358 24% 33,884,572 29% 31,095
Slide 18: Recap of Recent Major Events
4. Recap of Recent Major Events On August 29, 2022, the Taiwan Taoyuan District Court declared Chunghwa Picture Tubes, Ltd. (hereinafter referred to as ”CPT”) bankrupt in accordance with Article 65(1) of the Bankruptcy Law. On September 28, 2022, the Department of Commerce of the Ministry of Economi
Slide 19: III. Core Business's Direction of Strategic Development
III. Core Business’s Direction of Strategic Development Enabler of Digital & Energy Transformation 19
Slide 20: Power Business Group's Direction of Strategic Development
i. Power Business Group’s Direction of Strategic Development and Performance Result Enabler of Digital & Energy Transformation 20
Slide 21: Business Advantages and Market Opportunities: Power Business Group
1. Business Advantages (B.A.) and Market Opportunities (M.O.) Power Business Group BU Heavy Electrical Equipment Cable Motor Smart Meter 1. The only one manufacture with 1. As a qualified supplier for 1. Tatung brand has penetrated deep into 1. The 1st Smart meter full range power Taipower's HV/LV p
Slide 22: Taipower grid resilience strengthening construction plan
2. For the demands of Taipower's grid resilience strengthening construction plan over 10 years, Tatung explores the business opportunities of power-related equipment, such as transformers, power cables and smart meters. Distribution Projects Reinforcement Projects Protection Projects Resilience Stre
Slide 23: Taipower turnkey multi-objective substation projects
3. Tatung explores the business opportunities of Taipower's turnkey projects of multi-objective substations, such as the Da'an Substation and so on. 28 New Substations Promote the Construction (2022~2025 11substations) of New Substations (2026~2032 17substations) one more substation, 28 new substati
Slide 24: STATCOM systematic turnkey projects
4. Tatung collaborates with the international heavy power enterprises to explore the business opportunities of STATCOM systematic turkey projects. STATCOM system Wind power and solar power are source of instability power. STATCOM (Static Synchronous Compensator) will improve the power system stabili
Slide 25: Wind farm, solar farm and energy storage equipment orders
5. Tatung explores the business opportunities of the wind farm, solar farm and energy storage system related equipment orders, and substation EPC projects. Offshore Solar System Energy Storage Wind Power Construction System Construction Year 2025: 5.6GW Year FY2025: 20GW Year 2025: 1.5GW The offshor
Slide 26: ESG trends: Total solution products
6. According to the ESG trends, Tatung provides the products of TOTAL SOLUTION, including Amorphous transformers, IE4 high-efficiency motors, first-class energy-efficient inverter air conditioners and water/air-colled chillers. Amorphous Core IE4 High-Efficiency Inverter Air-Cooled Inverter Air-Coll
Slide 27: Energy-saving products and overseas smart meters
8. Tatung continuously develops energy-saving and carbon-reducing products, including hydro generators, EV power systems and IE5 synchronous reluctance motors. Hydro Generator High Volt Explosion-Proof Motor MCU+EV Motor 9. Tatung explores the overseas business opportunities of smart meters, includi
Slide 28: Cooperation with Siemens Energy on GIS control cabinet
10. For offshore windfarm markets, Tatung strategically cooperates with Siemens Energy for the localization of GIS control cabinet. A. Applications 1. Blue GIS applied in the wind tower Blue GIS installed in the tower of offshore windfarm is mainly limited by the space of the tower, so it needs to a
Slide 29: New Energy Group's Direction of Strategic Development
ii. New Energy Group’s Direction of Strategic Development and Future Layout Enabler of Digital & Energy Transformation 29
Slide 30: Business Advantages and Market Opportunities: New Energy Group
1. Business Advantages (B.A.) and Market Opportunities (M.O.) New Energy Business Group BU Solar Energy Energy Storage 1. Possess the ability to integrate design, planning, construction 1. Possess the ability to integrate design, planning, and operation and maintenance. construction and operation an
Slide 31: Market Role
2. Market Role An important developer and operator of green power in domestic The main service force for the stability of domestic power system A value-added brand of innovative smart energy Promotion platform for industries to achieve energy carbon reduction Energy Saving • Energy visualiza
Slide 32: Energy Creation: Solar Power Plant Performance
3. Energy Creation：Solar Power Plant Performance Capacity 265 MWp Quantity 1329 sites Total Accumulated Energy Production 1100 GWh Enabler of Digital & Energy Transformation 32
Slide 33: Energy Storage: Large Energy Storage System and Microgrid Performance
4. Energy Storage：Large Energy Storage System and Microgrid Performance 2022 November Successful bidder of Energy First domestic enterprise certified to UL9540, the Standard of Energy Storage Systems and Equipment Storage EPC construction at Taipower Dongshan extra-high voltage substation: 60MW Loca
Slide 34: Energy Usage: Electricity Liberalization
5. Energy Usage：Electricity Liberalization 2025 More than 10% of electricity usage in High Energy User contract is Green Power. 2030 The proportion of Green Power is 15% in enterprise electricity usage, gradually achieve the goal of RE100. Original Model Taipower Power Purchase Agreement Electricity
Slide 35: Energy Usage: EV Charging Service Performance
5. Energy Usage：EV Charging Toon Service Performance 2025 Construct 7,200 AC charging and 600 DC charging in public car park. 2030 Invest over NT$83.8 billion in electric vehicles for company cars. 2040 P/S ratio of Domestic electric vehicles reaches 100%. + Supercharger is placed Employee Car Park
Slide 36: Energy Saving: Air Conditioner, Motor and Transformer
6. Energy Saving：Air Conditioner, Motor and Transformer 變頻冷氣 Inverter Air Conditioner 高效馬達IE4 High-efficiency induction motor IE4 Low低耗能變壓器 Energy Transformer Tatung Oil-Immersed Type Transformer Tatung Resin Type Transformer Enabler of Digital & Energy Transformation 36
Slide 37: Energy Visualization
7. Energy Visualization Zero Carbon Integration Dashboard Enabler of Digital & Energy Transformation 37
Slide 38: Real Estate Group's Direction of Strategic Development
iii. Real Estate Group’s Direction of Strategic Development and Assets Development Enabler of Digital & Energy Transformation 38
Slide 39: Tatung Group Shan-Chih Asset Development
Tatung Group Shan-Chih Asset Development -2022- Enabler of Digital & Energy Transformation 39
Slide 40: Business Advantages and Market Opportunities: Real Estate
1. Business Advantages (B.A.) & Market Opportunities (M.O.) B.A. 1. Activate the assets with independent property rights. (MRT Wanda Line LG07 Joint Development Programme & Zhonghe Industrial Area Programme) 2. Collect external cases for urban renewal programmes in the Taipei City and the New Taipei
Slide 41: Tatung Smart Manor (Tucheng District)
2. Construction in progress and Ongoing Sales：Tatung Smart Manor (Tucheng District) 大同莊園第一期 大同莊園第三期 大同莊園第二期透視示意圖 Partition Lot Size Numbers of Project Timeline household • Fully sold out in October 2020, with total sales of approximately NT$2.6 billion. Phase Ⅱ 1,141 ping 177 units • By the end of M
Slide 42: MRT Wanda Line LG07 Joint Development Program
3. Expected to be sold publicly in 2023：MRT Wanda Line LG07 Joint Development Program (Zhonghe District) Information No. 224, Liancheng Road, Zhonghe Location District, New Taipei City, Taiwan Around 5,255.69 ping Lot size (17,374.17 square meters) The site will be developed into a Vision residentia
Slide 43: Shuanglian Urban Redevelopment Programme
4. Expected to be sold publicly in 2023：Shuanglian Urban Redevelopment Programme Information Ln. 160, Minquan W. Rd., Datong Dist., Taipei Location City, Taiwan (R.O.C.) Around 333 ping Lot size (1,100 square meters) Pure residential. Vision (64 units in total) Total sales Approximately NT$1.4 billi
Slide 44: Fuxing S. Rd. Urban Redevelopment Programme
4. Land Development under consolidation：Fuxing S. Rd. Urban Redevelopment Programme Information Section 1, Fuxing South Road, Daan District, Location Taipei, Taiwan Around 1,101 ping (3,639.69 square meters) Lot size <Shan-Chih owns 57%> (Shan-Chih and Chih-Sheng hold 631 pings of building land) Est
Slide 45: Zhonghe Industrial Area Programme
4. Land Development under consolidation：Zhonghe Industrial Area Programme Information Juguang Rd., Zhonghe Dist., New Location Taipei City, Taiwan Around 5,508 ping of industrial land 12 Lot size (18,208 square meters) M Estimated size Approximately 33,000 ping 8M of total property (109,091 square m
Slide 46: Prospect: Fu-Yung Building
5. Prospect：Fu-Yung Building Information Section 3, Ren'ai Rd., Da’an Dist., Location 信 Taipei City, Taiwan 仁 義 愛 路 路 三 段 118 About 1,367 ping Lot size (Shan-Chih owns 860 ping，63%) 巷 147 3 弄 巷 (11M) (10M) Estimated size Approximately 16,800 ping of total property 信義路三段147巷36弄(8M) (55,537.44square m
Slide 47: Q&A
Q&A https://www.tatung.com/ Enabler of Digital & Energy Transformation 47
Slide 48: © TATUNG
© TATUNG Enabler of Digital & Energy Transformation