Superalloy Industrial Co., Ltd. · TWSE:1563
Superalloy Industrial — Investor Presentation (2024)
37 slides from Superalloy Industrial's investor presentation, 2024
Slide 1: SuperAlloy Industrial Co. (1563 TT) Investor Presentation
SuperAlloy Industrial Co. (1563 TT) Investor Presentation Forging the of Mobility
Slide 2: Disclaimers
Disclaimers The information contained in this confidential document ("Presentation") has been prepared by SuperAlloy Industrial Company Ltd. (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. While the information contained herein has
Slide 3: SAI Is The Proxy For The Growth Of Luxury Cars
SAI Is The Proxy For The Growth Of Luxury Cars We target to achieve sustainable return from our green investment ● With 30 years of forging, shaping and surface treatment expertise, SAI stands as the world's top one aluminum forged wheel supplier for luxury automotive brands like Rolls Royce, Ferrar
Slide 4: SAI Is The Largest TW Tier-1 Machining Supplier
SAI Is The Largest TW Tier-1 Machining Supplier Aims to Maximize Shareholder Return SAI’s Triple-Arrow Strategy to maximize sustainable profitability and shareholder return 01 02 03 Enhance Operational Efficiency Reinforce the and Profitability Leading Position Sustainability in the Global 2-1 2-2 A
Slide 5: Strengthen Industry Leadership
01 Strengthen Industry Leadership 5
Slide 6: Tier-One Supplier For Top Global Brands
Tier-One Supplier For Top Global Brands SAI is the world’s top 1 aluminum forged wheel maker for Super and Luxury cars. We will continue to develop various projects to enhance customer penetration rate. Top 5 Clients: Lexus(Toyota) 、JLR、 Porsche 、 BMW and Mercedes-Benz 2001 2004 2006 2007 2008 2009
Slide 7: SAI and Luxury Brands Outgrew The Global Market
SAI and Luxury Brands Outgrew The Global Market ● During 2018-23, luxury and premium car shipment has outgrown global automotive market. ● Our high-end forged wheels business will continue to grow with global luxury and premium cars. 2018 2019 2020 2021 2022 2023 2018-23 CAGR Global Cars Shipment (m
Slide 8: The High-Entry Barrier of Automotive Supply Chain
The High-Entry Barrier of Automotive Supply Chain Strict Certification Is The Foundation of Strong Partnership With Clients Stage 1 Stage 2 Stage 3 Stage 4 Client Certification Receiving Orders Client Qualification and Approval Production and Delivery 2-4 years 9-18 months 7-13 months 6-9 months 驗證
Slide 9: SAI Realizes Product Design Through a Thousand Trials
SAI Realizes Product Design Through a Thousand Trials With nearly three decades of experience and collaborations with international brands, we have accumulated a wealth of craftsmanship. Since 2000, we’ve produced 2,225 wheel models, with a cumulative sales volume of 12 million units. As of 2023/10/
Slide 10: Made in Taiwan For the Global Market
Made in Taiwan For the Global Market The clientele for Super/Luxury and Premium cars spans across regions such as Europe, the Americas, and Japan. 3 Global footprint and revenue distribution Production America Sites Others 30% 25% 21% 25% 25% 25% 16% 19% Douliu Pingtung P1 Germany 2020 2021 2022 202
Slide 11: The Forged Wheels Continue to Drive Upward Sales For Global Car Brands
The Forged Wheels Continue to Drive Upward Sales For Global Car Brands Forged wheel performs better than cast wheel, highlighting the status and taste of the car owner. Forged Wheel Indicator Cast Wheel Strength Durability Elongation Impact Resistance Fuel Economic Unsprung Weight Vehicle Handling P
Slide 12: SAI Supplies 32 EV Models with 61 in progress
SAI Supplies 32 EV Models (9 BEV : 23 PHEV) with 61 in progress Aluminum forged wheels can simultaneously meet the high torque acceleration, lightweight, handling and safety requirements of electric vehicles 24,000 unit/year 14,000 unit/year 95,000 units 43,000 units Porsche Taycan 2 design models (
Slide 13: Spectre ─ Rolls Royce's First EV
Spectre ─ Rolls Royce’s First EV Joining hands with SAI to pioneer a new category of automobiles: Ultra-Luxury Electric Super Coupé 13
Slide 14: Increasing Efficiency & Profitability
02 Increasing Efficiency & Profitability 14
Slide 15: SAI Aims to Deliver Sustainable Long-term Shareholders Returns
SAI Aims to Deliver Sustainable Long-term Shareholders Returns through the Enhancement of Operational Efficiency and Profitability Revenue (NT$million) Operating Margin (%) 15,000 20.0 17.0 16.0 13.9 10,000 12.8 Long-term operational goals : 12.0 9.7 15-20% Operating Margin 8.0 8.0 5,000 7.0 Double-
Slide 16: Improve Operational Efficiency through Expanding Net Shape Forged Wheels
2-1 Improve Operational Efficiency through Expanding Net Shape Forged Wheels Advantages of Net Shape Forged Wheels ◆ Our Net Shape Forged Wheels utilize precision forging to shorten post-forging processes, simplify the production process, which leading to less production time and lower cost. It is s
Slide 17: More Net Shape Forged Wheel Projects Are Coming
More Net Shape Forged Wheel Projects Are Coming 14 net shape forged wheels are in mass production. 63 are under development. Charger, Challenger, Durango SRT series 10 wheels are in mass production、1 wheel is under development 2021MY M3 M4 Competition 4 wheels are in mass production 2024MY Macan and
Slide 18: Increase Profitability by Using Recycled Aluminum
2-2 Increase Profitability by Using Recycled Aluminum Achieve diversification of supply sources, reduce inventory and cost Forging Machining Polishing Painting Turning & Milling Manual & Auto 7,000 Ton Forging Manual & Auto Diamond-Cutting Painting Flow Forming Grinding Dot Marking Powder & Liquid V
Slide 19: We Help Automakers Accelerate Their Carbon Neutrality Goals
We Help Automakers Accelerate Their Carbon Neutrality Goals The use of recycle aluminum can reduce emissions by up to 95% compared to primary aluminum • Automakers apply more recycled aluminum Year of Caron Automakers Neutrality BMW requires suppliers to use more than 50% of recycled aluminum by 202
Slide 20: Green Milestone
Green Milestone MOVING • The yield rate of RESAICAL® recycled aluminum increased from 69% in 2020 to 97% in 2023. Our current recycled aluminum annual capacity is 40k tons and new production capacity will INTO continue to be built. Usage of RESAICAL® recycled aluminum is currently maintained at 30%
Slide 21: Sustainability
03 Sustainability 21
Slide 22: Independent Directors Reached 40% of Board Seats
Independent Directors Reached 40% of Board Seats; Two Female Directors In The Board Diverse board members to continuously optimize operation and corporate governance Independent directors Cheng, Ming-Siou Liou, Wan-Yu Cheng, Ting-Wang Chen, Wun-Zong Specialty: Carbon Specialty: Specialty: Law Specia
Slide 23: Sustainable Operation and Growth
Sustainable Operation and Growth Profitability Improvement and Sustainable Sustainable Revenue Growth • Generating a sustainable double-digit Return ROE • Maintain at least 50% payout ratio Listed on TWSE on May 13th TW No.1 Machining Tier-1 supplier Profitability • Optimize operational efficiency I
Slide 24: Q&A
Q&A 24
Slide 25: APPENDIX
APPENDIX 25
Slide 26: Key Financial Performance
Key Financial Performance Revenue (NT$million) Net profit after tax (RHS) Gross Margin (%) Operating Margin (%) 1,500 40.0 14,000 1,204 30.8 12,000 30.0 26.7 25.7 10,000 1,000 22.8 22.3 18.2 18.9 8,000 20.0 17.0 623 608 12.8 13.9 6,000 583 340 500 9.7 4,000 10.0 7.0 8.0 222 249 2,000 1.9 6,587 5,892
Slide 27: Income Statement
Income Statement YoY (%) NT$mn 2020 2021 2022 2023 1Q24 2021 2022 2023 1Q24 Revenue 5,442 7,488 6,402 7,779 1,954 -14.5 11.2 21.5 9.2 Gross Profit 992 1,922 1,213 1,734 521 -36.9 25.2 43.0 27.3 Operating Expenses -611 -1,326 -1,094 -980 -249 -17.5 -20.9 -10.4 7.7 Operating Profit 381 596 119 755 272
Slide 28: Balance Sheet
Balance Sheet YoY (%) NT$mn 2020 2021 2022 2023 1Q24 2021 2022 2023 1Q24 Total Assets 16,820 16,444 17,562 17,376 17,333 -2.2 6.8 -1.1 -3.3 Cash 771 1,135 878 1,237 1,673 47.2 -22.6 40.9 71.0 AR & NR 795 875 827 1,021 1,043 10.1 -5.4 23.4 -0.6 Inventories 5,072 4,972 6,413 6,241 5,890 -2.0 29.0 -2.7
Slide 29: Our Revenue Distribution Based On The Top Five Customers and Regions
Our Revenue Distribution Based On The Top Five Customers and Regions 2022 2023 Jaguar Land Rover Jaguar Land Rover Revenue Contribution By Regions 12% 13% Limited Limited 60% 56% 55% Dr. Ing. h.c. F. Porsche 台灣豐田通商股份有 50% 11% 10% AG 限公司 40% Mercedes Benz U.S. Dr. Ing. h.c. F. Porsche 10% 9% 30% 25%
Slide 30: Improving Operating Margin
Improving Operating Margin Shipping costs are back to pre-pandemic levels and operating margin has significantly improved. We aim to maintain double-digit operating margin. 30% Net Margin Gross Margin Operating Margin 26% 25% 22% 19% 20% 18% 15% 10% 8% 10% 7% 9% 5% 2% 8% 4% 4% 0% 2020 2021 2022 2023
Slide 31: The Fluctuation of the US dollar and Aluminum Prices
The Fluctuation of the US dollar and Aluminum Prices Reducing US dollar holdings has minimized the impact of exchange rate fluctuations on non-operating gains and losses. We are implementing a natural-hedge strategy. 2023 Income Currency Mix NTD, 5% ● A 1% fluctuation in the US dollar exchange rate
Slide 32: Our Long-term Dividend Policy
Our Long-term Dividend Policy We aim to distribute a minimum of NT$2 cash dividend per share annually with a minimum dividend payout ratio of 50%. 32
Slide 33: Luxury / Premium Cars Outgrew Global Car Market
Luxury / Premium Cars Outgrew Global Car Market ◆ Due to chip shortage, OEMs have ensured that the most profitable products will continue to roll off production lines. ◆ Customers of higher-priced vehicles tend to be more insulated during economic downturn. ◆ In 2021, premium cars have remarkable gr
Slide 34: Increasing Aluminum Parts
Increasing Aluminum Parts As aluminum penetration continue to grow in closures and body structures, suspension components are also projected to increase aluminum usage. Parts dedicated to EV (e.g. battery box, motor housing, converter housing, BMS housing, etc.) will also adopt aluminum to reduce we
Slide 35: Large Vehicle Adopts More Aluminum Component
Large Vehicle Adopts More Aluminum Component Source: Ducker Frontier 35
Slide 36: EV Growth Goes Full Throttle
EV Growth Goes Full Throttle China & EU drive the EV-transition in 2021 EV to Drive Global Automotive Sales In 2021, the no. of global EV increased 108% y-y, Automakers sold 6.6 million plug-in vehicles in 2021, outgrowing global new cars growth of 4.6% and more than double the 3 million car sold in
Slide 37: Robust Order Momentum With Visibility Extending To 2030
Robust Order Momentum With Visibility Extending To 2030 The growth of the luxury car market and the expanding adoption of aluminum components in electric vehicles will benefit our sustained growth and maintain our industry-leading position. MOVING ● According to IMARC’s market research, the global l