Taiwan Sakura Corporation · TWSE:9911
Taiwan Sakura — Q3 2022 Earnings Presentation
37 slides from Taiwan Sakura's earnings presentation, 2022
Slide 1: SAKURA GROUP
Hite e SAKURA GROUP
Slide 2: Disclaimer
Disclaimer The information provided in this presentation, including the forward-looking views mentioned, is the predictive information obtained by the company based on internal and external sources and the overall economic development. These abovementioned descriptions also include risks and uncer
Slide 3: Company Profile
Company Profile Chairman Chang, Yung-Chieh Paid-in Capital NTD 2.21 billion Production Base Taiwan Head Office／ Daya 2nd div. Shenkang／ Wufeng Employees：1,000 China Kunshan, Jiangsu (Sakura China) Shunde,Guangdong (Sakura Shunde) Employees：1,500 Vietnam Binh Duong Employees：110 Head Office 1978 1992
Slide 4: Operation Locations
Operation Locations Head Office Dish Dryer • 2 production bases 中國 China • Jiangsu, Zhejiang, Shanghai, Sichuan and Guangdong are the main sales core areas Shenkang plant • More than 10,000 sales locations Range hood • 4 production bases Punch/Sheet metal/Painting Taiwan • More than 3,500 sale
Slide 5: Investment Structure
Investment Structure 台灣櫻花 Taiwan Sakura Capital：NTD 2,211mn 100% 43.19% 100% 100% 100% Total holding 櫻花家居 卜大實業 雅適國際 新加坡控股 44.39% Sakura B.V.I. Sakura Home Puda Topax Sakura Singapore Capital: USD 17.15 mn Capital: NTD 150 mn Capital: NTD 296 mn Capital: NTD 120 mn Capital: USD 4 mn 54.99% 45% 100% 越
Slide 6: Brand Milestones
Brand Milestones 1978 “ SAKURA ” brand established 1980 “Free oil filters with a door-to- door delivery” as the free permanent service 1987 “Free examination of water heater” as the free permanent service 1994 “SAKURA (China) Bath and Kitchen Co., Ltd” officially began the production and sales activ
Slide 7: Brand Awards
Brand Awards Received the Taiwan Excellence The No. 1 ideal brand in consumers’ minds Awards for 19 consecutive years for 36 consecutive years 1997～2022 56 Excellence Awards 6 Excellence Silver Award 7
Slide 8: Business Concept
Meet the needs of Business Concept local consumers Innovation 創新 DFSS/DFMEA High-pressure leak test Ignition switch test More than 200 R&D personnel in the group The number of patents exceeds 500 Constant temperature and Withstand voltage test moisture duration test 品質 服務 Has the most test equipment
Slide 9: Business Prospection
Business Prospection 滿足各式家庭 輕鬆擁有 ㇐站式服務 願景 美好居家生活的創造者 The creator of a better home life Meet the needs of a variety of families Easy to afford One-stop service Vision 以家庭為發展核心 使命 以整體解決方案全心創造優質家庭生活 Create high-quality family life wholeheartedly with overall solutions Mission 策略 Sustainable Development
Slide 10: Core Mission
Core Mission A value enterprise and the maximum of the value for consumers and shareholders. ROE、Dividend yield Dividend Payout Strategy (%) (NT$) 25 EPS 5 4.62 Cash dividend per share 18.8 19.6 19.3 4.06 4.08 20 17.0 17.7 18.4 4 3.65 ROE 3.29 15 13.3 3 2.75 3.60 12.3 3.2 9.0 1.97 1.89 2.6 2.65 2.65
Slide 11: Multi-category operation
Multi-category operation Take the family as the core of the product layout Kitchen and Kitchen Solution House Deco bathroom appliances Plan Design Kitchen Solution Import House Deco Kitchen Appliances Water Heater Kitchen Appliance Bath Module 11
Slide 12: Multi-brand management
Multi-brand management Water Heater Import Kitchen Solution Bath Module House Deco Kitchen Appliance Kitchen Appliances 1978 1989 1989 2008 2020 台灣廚電代理 2008 12
Slide 13: Sales channels
Sales channels More than 3,500 sales locations Sakura’s channel penetration rate exceeds 80% Distributor Brand store Taiwan Sakura Direct Dealer Regional Branches Regional Agents Sanitary materials Special dealer (kitchen solution、import department) (9) Kitchenware factory Store/Shop Land developer
Slide 14: Global Market Network
Global Market Network ODM/OEM Hong Kong Australia USA Brazil Dominican Republic OBM Hong Kong Myanmar Macau Philippine USA Mexico Canada Peru Vietnam 14
Slide 15: 2021 Revenue Breakdown
2021 Revenue Breakdown Total Revenue : NT$ 7.57 bn Revenue of Water Heater / Kitchen Appliance (YoY+14.2%) NT$ 4.74 bn Import Topax (YoY+11.5%) 15% 0.25 billion Property Export Developer 0.57 billion 3% Brand Kitchenware 6% 8% Factory 11% Distributor、 Sanitary Sakura Materials 85% Brand Store 30% 11
Slide 16: 2021 Revenue Breakdown
2021 Revenue Breakdown Total Revenue : NT$ 7.57 bn Revenue of Kitchen Solution : NT$ 1.85 bn (YoY+14.2%) (YoY+12.3%) Import Export 0.25 billion 0.57 billion 3% 8% Brand store 29% Channel Kitchen Solution Water heater & Land developer or 1.85 billion Kitchen appliance Construction companies 4.74 bill
Slide 17: Taiwan Market _ Water Heater & Kitchen Appliance
Taiwan Market _ Water Heater & Kitchen Appliance Taiwan overall market Market share in Taiwan price hike (1000 units) effect S+T Sakura Topax energy-efficiency subsidies 1,784 46.8% 45.8% 45.4% 43.8% 42.7% 43.9% 1,661 42.2% 42.5% 42.1% 1,572 1,592 1,584 1,557 1,527 1,537 1,525 38.8% 37.9% 36.8% 36.6
Slide 18: Product Innovation
Product Innovation 10L 16L RF Water Heater Intelligent Turbo Boost 加倍水量 NTD 7,800 Water Heater NTD 23,900 加倍舒暢 GMR : 20%-30% GMR : 40%-50% 智能恆溫 專利渦輪增壓 Gas Stove Intelligent Built-in Hob NTD 5,600 with Double Vertex GMR : 30%-35% Flames NTD 18,600 GMR : 35%-45% 智能操控 Slope-side Range 3D Ring Suction D
Slide 19: Gas Water Heater
Gas Water Heater (1000 units) (千台) Overall market Market share (S+T) RF+FE Total 516 509 508 516 FY2013 FY2021 497 498 504 490 488 467 463 447 (69%) 343 339 Others S+T Others S+T 322 320 (59%) (55%) 293 288 292 46.9% 53.1% 46.7% 53.3% RF (Traditional) 278 284 251 244 237 230 232 217 215 209 219 197
Slide 20: Gas Stove
Gas Stove (1000 units) Overall market Market share (S+T) 600 510 508 FY2013 FY2021 500 454 451 468 457 453 455 423 425 402 378 Market：450,000~500,000 units per year 400 S+T S+T 300 Used house transfer Others Others 39.5% 42.8% 57.2% 200 Building license 60.5% 100 Building use permit 2010 2011 2012 2
Slide 21: Rang Hood
Rang Hood (1000 units) Overall market Market share (S+T) 500 Market：350,000~400,000 units per year 438 FY2013 FY2021 394 400 370 369 373 373 366 337 352 312 311 307 300 S+T S+T Others 36.4% Others Used house transfer 45.4% 200 63.6% 54.6% Building license 100 Building use permit 2010 2011 2012 2013
Slide 22: Kitchen Solution
Kitchen Solution Overall Market Steady growth in Increasing benefits of about 160,000~180,000 sets Sales of Land Developer the Brand Stores Overall market (1000 sets) Sales of Property developer (NT$ mn) Sales of brand stores (NT$ mn) 190 1,324 Brand stores 177 175 177 172 178 1,184 103 103 102 103
Slide 23: Development Plan_ Water Purifier
Development Plan_ Water Purifier Water Purifier 真正專業的淨水器＝ Market 淨 水 器 ＋ Over Hundred Brands Top barnd share <20% (Machine + Filter) NT$ 10bn • 售前/中/後 完整服務 Consumer • 隨時可查詢使用履歷 • 濾心更換專屬通知 Agent specialized Dealer • 借此平台與消費者互動 • 享有轉介商機 300stores • 淨水專業知識訓練 > • 取得完整消費者名單，分析商機潛力 Sales Amount Sakura • 強
Slide 24: Development Plan_ Whole House Customization
Development Plan_ Whole House Customization Taiwan Home Decor Market Size Operational Model Development Design service process with consumer demand as the core >100 bn Brand store Property Developer The overall industry is fragmented, and there is no absolute leading brand. Advantages of Sakura:
Slide 25: Whole House Customization
Whole House Customization Lobby Living Room Dining Room Kitchen Master Bedroom Walk-in Closet Bedroom Children's Room Elder's Room Study Room Balcony Others 25
Slide 26: Development Plan_ Vietnam Market
Development Plan_ Vietnam Market Main Products Gas Stove Built-in Hob Induction Hob Rice Cooker Rang Hood 70% 15% 4% 5% 4% Staged Goals • Use group resources to assist MK to quickly establish an 01 Short-term operating system and improve operating efficiency. • Analyze product benefits and integ
Slide 27: 2022 New Product
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Slide 28: 2022 New Product
2022 New Product #2 76 WT OR BR oh te 2 sane Ma - oR it 2 i OR HE Bl A HS > BR Be OR fe TR BR
Slide 29: Wufeng New Plant Planning Progress
Wufeng New Plant Planning Progress For the future growth demand of Kitchen Solution and Whole House Customization Original plan： Integrate Shenkang plant and Daya plant to optimize the production line. Post-change plan： Production base of Kitchen solution customization. Total building area：abo
Slide 30: Financial Highlights
Financial Highlights Net Revenue Net Income (NTD mn) 7,569 EPS (NTD) 6,628 6,299 5,986 6,050 5,601 5,644 5,149 4,852 4.62 4.06 4.08 3.74 3.65 3.29 2.75 1.97 1.89 800 889 893 1,008 754 539 517 701 720 2014 2015 2016 2017 2018 2019 2020 2021 2022/1-9 30
Slide 31: Financial Highlights
Financial Highlights 2014年 2015年 2016年 2017年 2018年 2019年 2020年 2021年 2022/1-9 年度 金額 % 金額 % 金額 % 金額 % 金額 % 金額 % 金額 % 金額 % 金額 % 營業收入 4,852 100.0% 5,149 100.0% 5,601 100.0% 5,644 100.0% 5,986 100.0% 6,299 100.0% 6,628 100.0% 7,569 100.0% 6,050 100.0% 營業成本 3,391 69.9% 3,531 68.6% 3,775 67.4% 3,736 66.2%
Slide 32: Sakura China
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Slide 33: China Market－Water Heater & Kitchen Appliance
China Market－Water Heater & Kitchen Appliance (RMB bn) Water heater Market Retail Sales Range hood Market Retail Sales Gas Stove Market Retail Sales YoY YoY YoY 17.4% 12.3% 12.7% 4.2% 8.7% 1.6% 7.2% 1.0% 3.9% -3.0% -4.1% -2.0% -6.4% -12.5% -7.5% -9.3% -5.9% -14.7% 62.5 67.0 65.7 43.3 21.5 20.9 61.5
Slide 34: Sakura China－Sales Channels
Sakura China－Sales Channels Sales Breakdown by Channel, 2021 Sakura China Real Estate 2.1% Online Offline Agent 15.7% Retailer 33.7% E-commerce Headquarters EC Regional Agents 25.6% (TMALL、JD、Suning、 PDD) 、Branches Key Account 21.6% Key Property Regional Agents Retailers Renovation Accounts Develope
Slide 35: Sakura China－Product structure
Sakura China－Product structure Water Heater/ Kitchen Appliance Sales Breakdown by Product, 2021 Others Wall-hung boiler 6% 4% Integrated stove 5% Electric water heater 6% Gas water heater Whole House Customization Whole House 30% Customization 8% Gas stove Range hood 17% 25% 35
Slide 36: Sakura China－Overall Business Strategies
Sakura China－Overall Business Strategies 產品 • Expand product line and increase unit price through product mix. Product • Increase resources to invest in future growth products. 通路 • Extended regional agents. Channel • Expand the coverage of offline retail stores. 管理 • Process optimization, improve o
Slide 37: THANK YOU!
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