Univacco Technology Inc. · TPEX:3303
Univacco Technology — Q2 2019 Earnings Presentation
39 slides from Univacco Technology's earnings presentation, Aug 27, 2019
Slide 1: Univacco Technology Inc. 2019Q2 Business Review
Univacco Technology Inc. 2019Q2 Business Review 3303.TWO www.univacco.com
Slide 2: Disclaimer Statement
Disclaimer Statement The presentation and information presented herein (the “Document”) contain forward-looking statements which may include, but not limited to, statements of the Company regarding business activities, events or developments that occur in the future. The contents are based upon or d
Slide 3: Outline
Outline Company Profile Core Technology & Competitive Advantages Finance Review Future Plan & Corporate Governance | PAGE 3
Slide 4: Company Profile
“~~ (UIVACCO COMPANY PROFILE
Slide 5: Univacco Company Profile (3303.TWO)
Univacco Company Profile (3303.TWO) Chairman Mr. Kuo-Lung Tsai CEO Mr. Bruce Lee Established Aug. 29, 1990 Paid-up Capital NTD 961 million * Consolidated Revenue NTD 2.48 billion (2018) Listing Day May 28, 2007 Group Employees 650 * Main Products Vacuum Coating Foils (VC) Optoelectronic Films (OP) *
Slide 6: Focus on Foil for 30 years, Global Top 3 Foils Brand
Focus on Foil for 30 years Univacco Global Top 3 Foils Brand 2018: 95% consolidated revenue of Univacco came from VC products (foils) | PAGE 6
Slide 7: Foils Sales to 70 Countries
Foils Sales to 70 Countries Lithuania Russia The Netherlands France Ukraine USA Spain Bulgaria East Japan West Operations Iran Wuxi Operations HQ Taiwan Dubai Colombia India Malaysia 7 Production plants 6 Subsidiaries South Africa Chile Australia Argentina 18 Exclusive distributors HQ Subsidiaries E
Slide 8: Proportion of Exports is Up to 90%
Proportion of Exports is Up to 90% 2019H1 2002 37 % 88 % | PAGE 8
Slide 9: What is stamping foil?
What is stamping foil? The structure of stamping foil PET film : main material Release：release the main structure from PET film Color：provide color to the product Aluminium coating：provide metal effect Topping with gum：paste on the object | PAGE 9
Slide 10: Foils Series
Foils Series Packaging with metal design elements, enrich the design level, thereby enhancing brand and product value! Hot Holographic Cold foil stamping foil foil Hot stamping foil can be It can be directly Multiple laser patterns applied to the large area, connected to the are available for hot fo
Slide 11: Awards and honors
Awards and honors Univacco receives numerous awards worldwide. Univacco foil products were awarded by FSEA in 9 consecutive years, and products are well recognized and appreciated in the global market. Won FSEA Won FINAT Won Sun Cup Gold Leaf Award 2017 Asia Label 2011-2019 Awards 2016 經濟部 Won Poten
Slide 12: Core Technology & Competitive Advantages
CORE TECHNOLOGY & COMPETITIVE ADVANTAGES
Slide 13: Applied Fields of Vacuum Coating
Applied Fields of Vacuum Coating Low Technology barrier High Metallic film Metallic Metallic film Stamping for flexible yarn for rigid foil packaging packaging Holographic effect | PAGE 13
Slide 14: Own Branding Manufacturing
Own Branding Manufacturing Univacco owns its core technology by integrating the technologies in chemical formulation, vacuum metallizing, and coating. Univacco prides itself in foils development, establishing own brand name and setting up sales channels in more than 70 countries. Unique chemical Vac
Slide 15: Foils Application Markets
Foils Application Markets Hot Stamping Cold Foils Foils Greeting Cards Labels for daily supplies Gift boxes/package Poster printing Wine/Liquor labels Gift boxes/package Hot Foils Specialty Foils for Plastic Wine/liquor bottles Vehicle license plates Clothing, leather bags Table cloth Bike frame/hel
Slide 16: Breakthrough Cold Foil Launched
Breakthrough Cold Foil Launched Univacco is the world's second-largest producer of cold foils, and the largest in Asia. Launched over a century – Breakthrough foil product- Hot stamping foil Cold foil | PAGE 16
Slide 17: Cold Foil Benefits Industrial Chain
Cold Foil Benefits Industrial Chain 01 Reduce printing time thoroughly 18,000 sheets/hour 02 Reduce material loss (Single workshop/ alignment precisely) 03 Reduce inventory (Apply to more than 90% cold foil glue brands) 04 Enrich the printed-color possibility 05 Apply to more printing material | PAG
Slide 18: Brand & Distribution Strategy
Brand & Distribution Strategy Get rid of OEM production and choose OBM, a difficult but correct road. 2016- 2007-2016 Passive + active 2002-2007 marketing Passive Inception of marketing 1990-2002 own brand- UNIVACCO Localize market strategy OEM Local market information gathering Approach local partn
Slide 19: Trade Shows & Exhibitions
Trade Shows & Exhibitions | PAGE 19
Slide 20: Finance Review
“~~ (UIVACCO FINANCE REVIEW
Slide 21: Consolidated Revenues
Consolidated Revenues OP Revenue VC Revenue Unit : NT$ million 3,500 3,123 2,985 3,000 2,763 2,722 2,702 2,426 2,428 2,488 2,500 2,316 2,242 2,366 2,000 2,081 2,045 2,014 2,000 1,809 1,896 1,801 1,500 1,715 1,766 1,209 1,000 1,149 500 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019H BTAX (V
Slide 22: VC Business Performance
VC Business Performance VC Revenue VC consolidated GM VC Sales Quantity Unit : Million SQM Unit : NT$ million 3,500 550 479 3,000 429 450 399 2,500 331 2,366 327 350 2,014 2,000 2,000 1,869 1,801 219 250 1,500 1,149 150 1,000 31% 28% 27% 25% 27% 26% 50 500 - -50 2014 2015 2016 2017 2018 2019Q2 Reven
Slide 23: VC Niche products-Cold Foil Revenue
VC Niche products-Cold Foil Revenue Unit : NT$ million Cold Foil Revenue Cold Foil Sales Quantity Unit : Million SQM 196 1,500 200 1,250 141 150 135 993 1,000 100 747 93 726 96 750 642 100 594 490 500 50 250 - - 2014 2015 2016 2017 2018 2019Q2 Cold Foil-VC 34% 33% 37% 36% 42% 43% Revenue Ratio | PAG
Slide 24: VC Export-Sales Ratio After Listing
VC Export-Sales Ratio After Listing Domestic sales→ OEM→OBM Export Domestic Export Unit: NT million 外銷 Export 內銷 sales 外銷營收 Revenue 200% 2,500 2,219 180% 2,000 160% 1,500 140% 120% 1,000 100% 500 80% - 60% -500 40% 20% -1,000 57% 64% 69% 65% 64% 60% 69% 71% 81% 87% 88% 89% 92% 0% -1,500 2007 2008 20
Slide 25: Consolidated Revenue by Region
Consolidated Revenue by Region 11% 17% 44% 12% 44% 19% Taiwan 14% 14% Taiwan 12% 13% Others Others China Europe Europe China America America 2018Y 2019H Data: Univacco consolidated revenue in 2018 and 2019H. Note: Gray zone represents the revenue of other Asia countries, Oceania, and Africa. | PAGE
Slide 26: Consolidated Income Statement (yr)
Consolidated Income Statement(yr) 2019H 2018H DIF YoY Operating revenue 1,209,463 1,139,028 70,435 6% Operating costs (880,586) (871,624) (8,962) 1% Gross profit (loss) from operations 328,877 267,404 61,473 23% Gross margin 27.19% 23.48% Operating expenses (207,674) (208,368) 694 0% Selling expense
Slide 27: Consolidated Income Statement (q)
Consolidated Income Statement(q) 2019Q2 2019Q1 QoQ 2018Q2 YoY Operating revenue 618,525 590,938 27,587 582,108 36,417 Poperating costs (446,024) (434,562) (11,462) (453,474) 7,450 Gross profit (loss) from operations 172,501 156,376 16,125 128,634 43,867 Gross margin 27.89% 26.46% 22.10% Operating ex
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet 2019/6/30 2018/12/31 2018/6/30 Selected Asset Items Cash 349,825 369,517 523,224 Accounts Receivables 545,146 665,550 530,406 Inventory 400,258 453,384 465,481 Fixed Assets/Intangible Assets/Right-of- 1,304,624 1,097,516 1,122,811 use Assets Other Assets 365,541 388,016 32
Slide 29: Cash Flow
Cash Flow Unit: In Thousands of New Taiwan Dollars 2019H 2019Y 2018H Cash Flow from Operations 274,022 143,359 93,542 Cash Flow from Investing (182,530) (280,740) (142,980) Cash Flow from Financing (115,994) (114,637) (56,298) Effect of Exchange Rate Change 4,810 (6,401) 1,024 Net Increase in Cash (
Slide 30: Earnings & Dividends
Earnings & Dividends Unit：NTD/share EPS (NTD/share) Dividend (NTD/share) Distribution Yield Unit：% 5 350% 4.5 300% 4 250% 3.5 200% 150% 3 100% 2.5 50% 2 0% 1.5 -50% 1 -100% 0.5 -150% 0 -200% 2012 2013 2014 2015 2016 2017 2018 Net Profit after Tax 124 152 60 150 177 16 209 (NT$ Million) EPS (NTD/shar
Slide 31: Future Plan & Corporate Governance
FUTURE PLAN & CORPORATE GOVERNANCE
Slide 32: Focus on Core Business
Focus on Core Business Actively participate Strengthen global the global trade sales channels and shows & exhibitions cooperate with large to promote global printing UNIVACCO houses brand name Chemical Formula, Vacuum metallizing, Precision coating “Core Technology” Expand production Continue to R&D
Slide 33: Enlarge Vacuum Coating Industry
Enlarge Vacuum Coating Industry The value of OBM has been revealed, the revenue of company has grown rapidly. Implement the intellectualization manufacturing to strengthen the advantages in the industry. Labor costs in China has increased gradually and it is difficult to against R&D technology. Inve
Slide 34: Release CSR Report since 2013
Release CSR Report since 2013 2013 2015 2017 2018 2014 2016 Since 2015, Univacco has been among the top 20% Taiwan OTC listing companies in “Corporate Governance Performance Review” | PAGE
Slide 35: Green Univacco - CSR
Green Univacco - CSR Energy management system ISO 50001:2011 Green Management System Environment management ISO 14001:2015 Greenhouse gases management ISO14064- 1:2006 / Carbon footprint requirements & guidelines ISO 14067:2013 Green Supply Chain Suppliers are required and audited to follow
Slide 36: ISO Certifications
ISO Certifications Quality Management ISO 9001:2015 2000 | PAGE 36
Slide 37: Green Materials
Green Materials • Develop low VOC recipes • Low carbon recipes 04 • Water base recipes 03 Water-based resin (VOC free) 02 Environment friendly 01 Halogen solvent free High solid 8 products are introduced in 2012. content coating The volume of water-based resin is technology 30,727KG in 2017, raising
Slide 38: Focus on Green Methods
Focus on Green Methods Eco-solvent formulas used in production development Regenerative Thermal Oxidizers (RTO) recycle combustion to reduce VOC emissions 6 RTO 2019/8/26 | PAGE 38
Slide 39: Thank You
THANK YOU Stock code：3303 www.univacco.com