Tatung Co. · TWSE:2371
Tatung — Investor Presentation (2008)
41 slides from Tatung's investor presentation, 2008
Slide 1: Tatung Company (2371TT)
Tatung Company (2371TT) Integrity, Honesty, Industry, Frugality 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements included in this presentation that are not historical in nature are forward-looking statements. These forward-looking statements which may include statements regarding Tatung group future results of operations, financial condition, and investment plan are subject
Slide 3: Tatung Company Profile
Tatung Company Profile (2371 TT) Shareholders’ Meeting Established: 1918 Supervisors Capital: NT$ 44 Billion Board of Directors Audit Committee (US$ 1.3 Billion) Chairman/President Executive Vice President Core Investment Core Business Optoelectronics (CPT, Forward) 3C Solar and silicon wafer (GET,
Slide 4: Financial Information
Financial Information NT$ Billion 2006 2007, 1H 2007, Q1~Q3 2007, Jan~ Nov. (Un-audited) Sales 34.6 19.4 30.6 38.7 Net Income/Loss -8.18 1.8 3.52 EPS(NT dollar) -1.97 0.42 0.8 Diluted EPS 0.36 0.78 Notes: Diluted EPS is based on assumption of full conversion on outstanding CB and stock option Sales,
Slide 5: Core Businesses
Core Businesses © TATUNG :
Slide 6: Sales Ratio
Sales Ratio Core Business 2006 2007, Q1~Q3 2007,Jan~ Nov. (Un-Audited) 1. 3C (mainly displays) 44% 49% 51% 2. Wires and Cables 21% 19% 19% 3. Industrial Appliance 19% 17% 17% 4. Home Appliance 16% 15% 13% Sales, NT$ Billion 40 35 30 25 Home Appliance 20 Industrial 15 Wire & Cable 10 3C 5 0 2006, 200
Slide 7: Market Base
Market Base 2006 2007, Q1~Q3 2007, Jan~ Nov.(Un-audited) Domestic/Foreign Domestic/ Foreign Domestic/ Foreign Tatung 55% / 45% 50%/ 50% 48%/ 52% 3C 20% / 80% 16% / 84% 15%/ 85% Wires and Cables 80% / 20% 83% / 17% 83%/ 17% Industrial Appliance 80% / 20% 80% / 20% 82%/ 18% Home Appliance 85% / 15% 86
Slide 8: Overall Strategies
Overall Strategies ¾ Core businesses: 9 Increase Sales Revenue and improve gross margins 9 Add higher value-added businesses into the company 9 Divest businesses do not generate enough margin. Streamline product mix to create better margins and improve production efficiency ¾ Core Investments: 9 Foc
Slide 9: 3C - Product Category
3C -Product Category 2006 2007Q1~Q3 2007, Jan~ Nov (Un-Audited) ¾ Display 69% 80% 82% ¾ Connected Device 15% 9% 8% ¾ Information System 15% 10% 9% ¾ Digital Audio 1% 1% 1% 20 15 Digital Audio 10 Information System Connected Device 5 Display 0 2006, 2007,Q1~Q3 2007,Jan~Nov. Sales, NT$ Billion NT$ 15.
Slide 10: 3C - Strategy Planning
3C- Strategy Planning ¾ Increase sales revenue and margins by enlarging scale. ¾ Integrate with Proview for sharing designs and components/ suppliers to improve cost structure. ¾ Close down business without prospects. 10
Slide 11: Integration with Proview for improvements
Integration with Proview for improvements ¾ Tatung will leverage Proview designs and cost structure to improve the cost structure. ¾ Proview will use Tatung’s overseas factories and Tatung factories will reduce its overhead by adding volumes. ¾ Tatung can leverage Proview’s product lines, expand pro
Slide 12: Home Appliance - Product Category
Home Appliance -Product Category 2006 2007, Q1~Q3 2007, Jan~ Nov. (Un-Audited) ¾ Air Conditioner 32% 34% 36% ¾ Large Appliance 18% 18% 18% ¾ Small Appliance 16% 19% 21% ¾ Medical 8% 11% 12% ¾ Compressor+ (Meter) 26% 18% 12% Notes: Meter transferred to Industrials Business in 2007, Q4 Sales,NT$ Billi
Slide 13: Home Appliance - Strategy Planning
Home Appliance - Strategy Planning ¾ With right cost structure, Home Appliance is increasing export sales and business scale worldwide. ¾ Vietnam to be global production center 9 Large home appliances production has transferred to Vietnam in Q4, 2007. 9 Estimated to have 15% cost down by the transfe
Slide 14: Wire & Cable - Product Category
Wire & Cable -Product Category 2006 2007, Q1~Q3 2007, Jan~ Nov. (Un-Audited) ¾ Copper & Enameled 59% 61% 62% ¾ Power Cable 24% 25% 24% ¾ Communication +Fiber 17% 14% 14% 8 Sales,NT$ Billion 7 6 5 4 Communication + Fiber Power Cable 3 Copper + Enameled 2 1 0 2006, 2007,Q1~Q3 2007,Jan~Nov. NT$ 7.3B NT
Slide 15: Wire & Cable - Strategy Planning
Wire & Cable -Strategy Planning ¾ Taiwan as strategy-developing and high-end production center. 9 Expand high-tech capacity in Taiwan to serve government infrastructural and large industrial markets. 9 Develop advanced technology and timely strategy for different market demands. ¾ Global factories a
Slide 16: Industrial Appliance - Product Category
Industrial Appliance -Product Category 2006 2007, Q1~Q3 2007, Jan~ Nov. (Un-Audited) ¾ Motor 53% 44% 40% ¾ Transformer 16% 27% 26% ¾ Switchgear 14% 21% 20% ¾ Generator 5% 8% 8% ¾ (Meter) 6% Notes: Meter transferred to Industrials Business in 2007, Q4 Sales,NT$ Billion 7 6 5 (Meter) 4 Generator 3 Swi
Slide 17: Industrial Appliance - Strategy Planning
Industrial Appliance -Strategy Planning ¾ Classified marketing and productions for diversified global demands : 9 To expand capacity in Taiwan for developed countries and high-end product markets. 9 To expand capacity in China and Vietnam for developing countries and low-end product demands. 9 To de
Slide 18: Core Investments
Core Investments © TATUNG «
Slide 19: Main Investments - Listed Companies
Main Investments Listed Companies Financial in CPT GET San-Chih Forward TSTi ECS 2007, Jan~Nov. (2475 TT) (3519 TT) Semi- (8085 TT) (8099 TT) (2331 TT) (Un-Audited) (3579TT) Sales 131.3 4.44 0.67 4.7 3.0 75.4 (NT$ Billion) Financial in CPT GET San-Chih Forward TSTi ECS 2007, Q1~Q3 (2475 TT) (3519 TT
Slide 20: Main Investments - Non-Listed Companies
Main Investments Non-Listed Companies Financial in 2007, Jan~ Nov. San-Chih TCPC (Un-Audited) Asset Sales (NT$ Billion) 2.4 8.2 Financial in 2007, Q1~Q3 San-Chih TCPC Asset Sales 2.2 6.6 (NT$ Billion) Net Income/Loss 0.957 0.046 (NT$ Billion) EPS (NT dollar) 1.87 1.87 Group Holding 100% 100% (Financ
Slide 21: Chunghwa Picture Tubes
Chunghwa Picture Tubes Sales, NT$ Billion (2475 TT) 131 140.0 120.0 105.9 103 100.0 80.0 60.0 40.0 20.0 0.0 2006 2007, Q1~Q3 2007, Jan~Nov. (Un- Unit: NT$ Billion Audited) 2006 2007, Q1~Q3 2007, Jan~ Nov (Un-audited) Sales 105.9 103 131 Net income -13.9 2.5 EPS (NT$) -1.7 0.28 21
Slide 22: Chunghwa Picture Tubes
Chunghwa Picture Tubes (2475 TT) ¾ Switch G3 and one G4.5 fab to focus on Small & Medium sized panels. Small & Medium BU takes leading position in industry. ¾ G6 and one G4.5 fab focus on niche MN and NB. ¾ Alliance with tier one OEM/ODM or TV brand name for next fab. ¾ Strengthen vertical integrati
Slide 23: Proview Investment
Proview Investment ¾ Investment: US$ 20 Million (Through San-Chih Asset Development) ¾ Holding: 16.22% ¾ Shares: 125M shares ¾ Price: HK$ 1.25/ share Expected Contributions to Tatung Group: ¾ Investment Income for San Chih Asset Development ¾ Cost Saving for Display business in Tatung ¾ Providing se
Slide 24: Green Energy Technology
Green Energy Technology (3519 TT) Taiwan Largest Multi-Crystalline Solar Wafer Maker ¾ Capacity ramp up Scaling up Furnace Annual Capacity (MW) Dec. 2006 26 65 Aug. 2007 46 110 Dec. 2007 80 200 ¾ To IPO on main board in 1H, 2008 Current Capital NT$ 864M (86.4M shares) IPO expected to raise NT$ 101M
Slide 25: Green Energy Technology
Green Energy Technology GET in Global Multi-Crystalline Solar Wafer Market Other 30% REC (Scan Wafer) 20% Green Energy 5% LDK Deutsche Solar 6% 16% BP Solar 7% M. SETEK Yingli 9% 7% Sources：PIDA, 2006/ 08 25
Slide 26: Green Energy Technology
Green Energy Technology GET in Global Multi-Crystalline Solar Wafer Market 2007 2008 Multi- crystalline Multi- crystalline Production Production Market Share Market Share Multi-crystalline 100MW 6% 200MW 8% wafers & ingot Based on Photon Consulting magazine global output estimation in 2007, March.~N
Slide 27: Green Energy Technology
Green Energy Technology Sales, NT$ Million Business Growth 4,443 4,500 4,000 3,270 3,500 3,000 2,012 2,500 2,000 1,500 1,000 352 500 0 2005 2006 2007,Q1~Q3 2007,Jan~Nov. Unit: NT$ Million (Un-Audited) 2005 2006 2007, Q1~Q3 2007, Jan~ Nov. (Un-Audited) Sales 352 2,012 3,270 4,443 Net income -60 539 3
Slide 28: Green Energy Technology
Green Energy Technology Capacity Ramp for Crystalline Silicon Wafer Q3, 2007 9 GET capacity reached 580 ingots per month with 46 furnaces. 9 Monthly shipment reached more than 2.8 million wafers. Q4, 2007 9 Monthly shipment reaches more than 3.1 million wafers 9 GET capacity reaches 1000 ingots
Slide 29: Green Energy Technology
Green Energy Technology Thin Film G8.5 ¾The first in Taiwan and the 7th in the world to develop G8.5 thin film production line. ¾Applied Material as Turn-key. 91st stage annual capacity (Q4, 2008): 30MW 9Further annual capacity (Q4, 2009): 50MW 9Guaranteed transferring rate: beginning 6% with improv
Slide 30: San-Chih Semi-Conductor Co.
San-Chih Semi-Conductor Co. (3579TT) ¾ Established: 1981 ¾ Capital: NT$ 700 Million ¾ 27-year experience in single crystalline ingot casting/ wafering ¾ Manufacturing CZ lapping wafers for diodes (3” and 4” mainly) ¾ Experienced with wafer reclaiming ¾ Schedule to IPO: -- End of 2008 on TSEC main bo
Slide 31: San-Chih Semi-Conductor Co.
San-Chih Semi-Conductor Co. Sales, NT$ Million Business Grow 800 672 626 549 600 400 200 0 2006 2007, Q1~Q3 2007, Jan~ Nov. (Un-Audited) Unit: NT$ Million 2006 2007, Q1~Q3 2007, Jan~Nov. (Un-audited) Sales 626 549 672 Net income (Includes investment) 1,308 3,035 EPS (NT$) 14.93 43.36 31
Slide 32: San-Chih Asset Development
San-Chih Asset Development With remarkable quality brand, Tatung asset development projects always hit the highest unit price in the area located. Land banks: Estimated 450,000 Pings (≒ 1.48 Million Square Meters or 15 Million Square Feet) Current Book Value: 22 Billion *The company reserves estimat
Slide 33: San-Chih Asset Development
San-Chih Asset Development Sales, NT$ Billion 2.5 2.2 2.4 2.0 1.5 1.2 1.0 0.5 0.0 2006 2007, Q1~Q3 2007, Jan~Nov. (Un- Audited) Unit: NT$ Billion 2006 2007, Q1~Q3 2007, Jan~Nov. (Un-audited) Sales 1.2 2.2 2.4 Net income 0.27 0.95 EPS (NT$) 0.52 1.87 33
Slide 34: Asset Development - Strategy Planning
Asset Development -Strategy Planning 1. For residential areas, Tatung will evaluate cash flow situations as well as locations to decide to pre-sell or to keep the land and property for rental income. 2. For commercial areas, Tatung conducts marketing survey (by Jones Lang LaSalle) to ensure best app
Slide 35: Activate Asset Development
Activate Asset Development ¾Tatung will kick off asset developments about 1 project per year. ¾Each project will continue for around 3 years, henceforth, it’s expected 3 projects to be concurrent in one year. ¾The project in Nan Kang has been launched on Jan. 1st, 2008 9Land Size:More than 4,000 pin
Slide 36: Tatung Consumer Products Co.
Tatung Consumer Products Co. Tatung consumer products through its own channel ¾ Currently 222 retail stores in Taiwan ¾ Execute promotion projects with other channels ¾ Save margins by reducing one layer of distribution channels ¾ 3-year store renovations is under going and expecting to expand by en
Slide 37: Tatung Consumer Products Co.
Tatung Consumer Products Co. Sales, NT$ Billion 9.0 8.2 8.0 6.6 7.2 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2006 2007, Q1~Q3 2007, Jan~Nov. (Un- Unit: NT$ Billion Audited) 2006 2007, Q1~Q3 2007, Jan~ Nov (Un-audited) Sales 7.2 6.6 8.2 Net income 0.014 0.046 EPS (NT$) 0.59 1.87 37
Slide 38: Forward Electronics Co.
Forward Electronics Co. (8085 TT) Sales: NT$ Million 5,166 4,685 5,000 3,750 4,000 3,000 2,000 1,000 0 2006 2007,Q1~Q3 2007, Jan~Nov. (Un- Audited) 2006 2007, Q1~Q3 2007, Jan~ Nov. (Un-Audited) Sales (NT$ Million) 5,166 3,750 4,685 Net Income (NT$ Million) 195 87 EPS 1. 86 0.62 38
Slide 39: Tatung System Technologies Inc.
Tatung System Technologies Inc. (8099 TT) 2006 2007, Q1~Q3 2007, Jan~ Nov. (Un-Audited) Sales (NT$ Million) 3,178 2,300 3,004 Net Income (NT$ Million) 178 116 EPS (NT$ dollar) 2.97 1.81 4,000 3,178 3,004 3,000 2,300 2,000 1,000 0 Sales: NT$ Million 2006 2007,Q1~Q3 2007, Jan~Nov. (Un- Audited) 39
Slide 40: Elite Group Computer Systems
Elite Group Computer Systems Sales, NT$ Billion (2331 TT) 80.0 75.4 70.0 57.8 52.3 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2006 2007, Q1~Q3 2007, Jan~Nov. (Un- Audited) Unit: NT$ Billion 2006 2007, Q1~Q3 2007, Jan~Nov. (Un-Audited) Sales 57.8 52.3 75.4 Net income -1.3 0.267 EPS (NT$) -1.25 0.22 40
Slide 41: Thank you
The Brand Which Best Represents Taiwan (China Times Survey, Sep. 10, 2007) Thank you 41