Hiti Digital Inc. · TWSE:3494
Hiti Digital — 2019 Investor Conference (KGI Securities, Taipei)
45 slides from Hiti Digital's conference presentation, Dec 19, 2019
Slide 1: HiTi Digital Inc. 2019 Investor Conference
HiTi Digital Inc. 2019 Investor Conference December 19 ,2019
Slide 2: Agenda
About HiTi Corporate Culture Manufacturing Plant Core Competence Current Product Line Financial Overview 2
Slide 3: Agenda
About HiTi Corporate Culture Manufacturing Plant Core Competence Current Product Line Financial Overview 3
Slide 4: About HiTi
About HiTi HiTi Digital, Inc. was established in 2001 in Taipei and became a listed company in 2007 as a manufacturer and innovator in dye sublimation Technology. In 2006, its sister company CHC Technology was created to research and develop dye sub media, forming HiTi Group. 4
Slide 5: About HiTi - HiTi Group
About HiTi HiTi Group 誠研科技 Specialize in • Photo & ID card Photo and ID card • components, printer development chemical, media and development, material • Printer manufacture •Supply dye sub media Key component R&D to • Own brand sales & • New material HiTi R&D Digital Inc. marketing • Media manufac
Slide 6: Global Sales Sites
Global Sales Sites Varese, Italy Los Angeles, USA Suzhou, China Taipei, Taiwan Mexico City, Mexico Singapore 6
Slide 7: Agenda
About HiTi Corporate Culture Manufacturing Plant Core Competence Current Product Line Financial Overview 7
Slide 8: Eco-friendly Innovation
Eco-friendly Innovation Traditional Photo Paper DRL Dye ✗Slow manufacturing Primer Reception BOPP Layer ✗Toxic organic solvents ✗Labour intensive Resin adhesive ✗Higher cost Polyethylene coating Paper Base Layer Polyethylene coating Resin adhesive PET Backing Layer Polybutylene 8
Slide 9: Eco-friendly Innovation
Eco-friendly Innovation Eco Paper Dye ✓Fast 1 line manufacturing, DRL Reception scalable to large customer Layer demands Ethylene vinyl acetate ✓No solvents required (EVA) ✓Fully automated process with real Paper Base Layer time computerized quality control ✓Drastic cost reduction through Polypropyl
Slide 10: Eco-friendly Innovation
Eco-friendly Innovation Traditional Photo Paper ECO Paper DRL DRL Dye Reception Primer Layer BOPP Resin adhesive Ethylene vinyl acetate (EVA) Polyethylene coating Paper Polyethylene coating Paper Base Layer Resin adhesive PET Polypropylene Backing Layer Polybutylene 10
Slide 11: Eco-friendly Innovation
Eco-friendly Innovation Traditional Photo Paper ECO Paper ✗Slow 8-step manufacturing process ✓Fast 1 line manufacturing process ✗Uses toxic toluene solvents ✓No solvents required ✗Labour intensive, quality subject to ✓Fully automated process with real human error time computerized quality control ✗H
Slide 12: A Green Technology for CO2e Reduction
A Green Technology for CO2e Reduction In addition to the process changes of dye sub photo paper, production adjustments were also made to the ribbon. The G1.5 ribbon manufacturing technology incorporates the back-coating process into the BOPET film. Alone with ECO paper manufacturing process, it is
Slide 13: Solar Energy
Solar Energy Since 2016, HiTi Digital, Inc. has begun to set up solar panels for green power. By the mid of 2018, we’ve totally set up 5,022 pieces of solar panels, covering an area of 19,213 sqm and till now generate power 4,287,528 kWh accumulatively. Which equivalent to the volume of CO2e reducti
Slide 14: Agenda
About HiTi Corporate Culture Manufacturing Plant Core Competence Current Product Line Financial Overview 14
Slide 15: Printer & Consumables Assembly
Printer & Consumables Assembly HiTi Digital, Inc. Taichung Plant (Taiwan) Printer Assembly Consumables Assembly Sheet type, Roll type, ID card Sheet type, Roll type, ID card printer, and Tandem printer ribbon, and Tandem media 15
Slide 16: Consumables Raw Material MFG
Consumables Raw Material MFG CHC Technology Taichung Plant (Taiwan) Ribbon Coating Line Paper Line BOPET Line Ribbon Slitting & Rewinding Paper Slitting & Rewinding 16
Slide 17: Consumables Raw Material MFG
Consumables Raw Material MFG Brü ckner BOPET Drawing Machine For ribbon film manufacturing 17
Slide 18: Consumables Raw Material MFG
Consumables Raw Material MFG 18
Slide 19: Agenda
About HiTi Corporate Culture Manufacturing Plant Core Competence Current Product Line Financial Overview 19
Slide 20: Core Values
Core Values Strong emphasis in R&D covering Electrical, Mechanical, Software, Firmware, and Color Science. Award-winning professional image quality DIMA Digital Printer Shoot-out Award: Y2004, Y2005, Y2006, Y2009 DIMA Innovative Digital Product Award: Y2002, Y2006, Y2009 TIPA Best Photo Kiosk
Slide 21: Core Competence
Core Competence Complete Patent Ownership Holding 64 global patents* Applying 16 patents (till Nov. 2019) HiTi effective patent distribution Total US TW CN JP KR EP 43 23 11 6 1 1 1 CHC effective patent distribution Total US TW CN JP KR EP EG FR DE IT 21 2 8 2 3 1 1 1 1 1 1 CHC applying patent d
Slide 22: Key Differentiators
Key Differentiators From raw material to finished good, we manufacture all of our consumables and most of our printers Being a young company with a lean organizational structure makes us a fast and flexible supplier, ready to satisfy any customer needs We are committed to becoming the largest dye su
Slide 23: Agenda
About HiTi Corporate Culture Manufacturing Plant Core Competence Current Product Line Financial Overview 23
Slide 24: Digital Photo Printer P320W
Digital Photo Printer P320W Print Size: 4x6” Max Print Speed: 47s • Phase-in latest ECO paper, which is flatter, brighter & whiter • Designed for business ID photo and at home printing • Optimized software for all users • Lightweight and small footprint 24
Slide 25: Digital Photo Printer P525L
Digital Photo Printer P525L Print Size: 6x2”, 5x5”, 6x6”, 4x6”, 5x7”, 6x8”, 6x12” Max Print Speed: 12.8s • Phase-in latest ECO paper, which is flatter, brighter & whiter • Suitable for photo booth, event photography, and instant photo kiosk • Support wireless printing 25
Slide 26: Digital Photo Printer P750L
Digital Photo Printer P750L Print Size: 2x6”, 5x5”, 6x6”, 4x6”, 5x7”, 6x8”, 6x12” Max Print Speed: 12.8s • Apply latest ECO paper, which is flatter, brighter & whiter • Large media capacity capable of 1,000 4x6 prints • Suitable for photo booth, and photo kiosks 26
Slide 27: Digital Photo Printer M610
Digital Photo Printer M610 Print Size: 4x6”, 6x8” Max Print Speed: 14s • Apply latest ECO paper, which is flatter, brighter & whiter • Large media capacity capable of 750 4x6 prints • Improved photo quality • Suitable for photo booth, and photo kiosks 27
Slide 28: Digital Photo Printer P910L
Digital Photo Printer P910L Print Size: 8x12”, 8x10” Max Print Speed: 35s • Apply latest ECO paper, which is flatter, brighter & whiter • Design and assembly in Japan • A4 size photo printing • Jam free mechanism 28
Slide 29: Digital Duplex Photo Printer P530D
Digital Duplex Photo Printer P530D Print Size: 4x6”, 6x6”, 6x8” Max Print Speed: 34s (duplex) • Smallest duplex photo printer in the world with outstanding print quality • Best choice for professional wedding photography • Also suitable for instant photo kiosk 29
Slide 30: Direct-to-Card Printer
[ Direct-to-Card Printer ] 30
Slide 31: Digital ID Card Printer CS-200e/220e
Digital ID Card Printer CS-200e/220e High speed with true edge-to- edge printing Full range of encoding modules Support transparent card printing ★ For use by government, financial institutions, or self- service card issuing kiosk 31
Slide 32: Industrial Photo Printer
[ Industrial Photo Printer ] 32
Slide 33: Digital Photo Printer X610
Digital Photo Printer X610 Print Size: 4x6” to 6x56” Max Print Speed: 1.5s ★ Longest panoramic photo printing ★ Suitable for online photo printing business, centralized photo printing center, and high volume printing photo studio 33
Slide 34: Instant Photo Kiosk
34 [| Instant Photo Kiosk |] nhiti
Slide 35: Self-Service Instant Photo Kiosk
Self-Service Instant Photo Kiosk New ECO paper, low ownership cost & end user printing cost Intuitive & user-friendly software High media capacity for increasing uptime and less staff interruption Small footprint required (<1sqm) ★ Suitable for retail chain store and convenient stores From 6x4in, up
Slide 36: Successful Cases
Successful Cases As of 2019.10… ★ Installed in more than 1500 convenient stores in Taiwan ★ Installed in more than 400 chain stores in Mexico ★ Daily print volume per store is more than 300 prints 36
Slide 37: Retail Kiosk Solution
37 [| Retail Kiosk Solution ] nhiti
Slide 38: Retail Kiosk Solution (I)
Retail Kiosk Solution (I) Place & Pickup at Instant Photo Kiosk, Checkout at Counter 38
Slide 39: Retail Kiosk Solution (II)
Retail Kiosk Solution (II) Place Order via HiTi App, Pickup at Counter or Deliver to Home 39
Slide 40: Retail Kiosk Solution (III)
Retail Kiosk Solution (III) Place Order thru Kiosk terminal, Pickup & Checkout at Counter 40
Slide 41: Agenda
About HiTi Corporate Culture Manufacturing Plant Core Competence Current Product Line Financial Overview 41
Slide 42: Financial Overview - Balanced Sheet
Financial Overview - Balanced Sheet Item 2019Q3 % 2018 % 2017 % (Unit: NTD '000) Current Asset $ 1,096,089 29 $ 1,068,381 30 $ 1,533,215 38 Real Estate, Factory, & 1,956,870 51 1,975,650 55 2,062,586 50 Equipment Other Asset 758,441 20 555,745 15 524,904 12 Total Asset 3,811,400 100 3,599,776 100 4,
Slide 43: Financial Overview - Income Statement
Financial Overview - Income Statement Item 2019Q3 % 2018 % 2017 % (Unit: NTD '000) $ Operating Revenue $ 770,948 100 100 $ 1,226,823 100 1,225,841 Operating Costs 702,618 91 1,040,918 85 1,018,409 83 Operating Margin 68,330 9 184,923 15 208,414 17 Operating Expenses 332,934 43 511,377 42 495,720 40
Slide 44: Financial Overview - Year On Year
Financial Overview - Year On Year Item 2019Q3 2018Q3 Change (%) (Unit: NTD '000) Operating Revenue $ 770,948 $ 859,864 (10.34) Operating Costs 702,618 766,722 (8.36) Operating Margin 68,330 93,142 (26.64) Operating Expenses 332,934 358,966 (7.25) Operating Loss (264,604) (265,824) (0.46) Non-Operati
Slide 45: Thank you!
Thank you!
HiTi Digital — 2019 Investor Conference (KGI Securities, Taipei) on 6ix