National Aerospace Fasteners Corporation · TWSE:3004
National Aerospace Fasteners — Q3 2024 Earnings Presentation
39 slides from National Aerospace Fasteners's earnings presentation, Nov 22, 2024
Slide 1: NAFCO Investor Conference 2024.11.22
NAFCO INVESTOR CONFERENCE 2024.11.22 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation
Slide 2: Disclaimer
DISCLAIMER • THIS PRESENTATION AND RELEASE CONTAIN “FORWARD -LOOKING STATEMENTS” WHICH MAY INCLUDE PROJECTIONS OF FUTURE RESULTS OF OPERATIONS, FINANCIAL CONDITION OR BUSINESS PROSPECTS BASED ON OUR OWN INFORMATION AND OTHER SOURCES. • OUR ACTUAL RESULTS OF OPERATIONS, FINANCIAL CONDITION OR BUSINES
Slide 3: Agenda
AGENDA COMPANY & BUSINESS INTRODUCTION BY PRESIDENT ALVIN LIN FINANCE PERFORMANCE BY CFO CHRIS LEE Q&A 豐 達 科 技 股 份 有 限 公 司 3National Aerospace Fasteners Corporation
Slide 4: Company & Business Introduction
COMPANY & BUSINESS INTRODUCTION PRESIDENT ALVIN LIN 豐 達 科 技 股 份 有 限 公 司 4National Aerospace Fasteners Corporation
Slide 5: Production Sites and Company Profile
PRODUCTION SITES Taoyuan, Taiwan : Land 45,000 Kunshan, China: Floor m² / Floor space：46,700 m² space 15,400 m² Kunshan, • China COMPANY PROFILE • Taoyuan, Taiwan FOUNDED : OCTOBER 14, 1997 IPO : 2002 CAPITAL: TWD 546 million • MAJOR SHAREHOLDER: GETAC ( SINCE 2007 ) EMPLOYEES:735人 2023 REVENUE: TWD
Slide 6: Qualified Supplier of the Four Major Aircraft Engine Manufacturers
Qualified Supplier of the Four Major Aircraft Engine Manufacturers 美國-奇異 美國-普惠 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation 6
Slide 7: Customers & Partners
CUSTOMERS & PARTNERS 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation 7
Slide 8: NAFCO Products
NAFCO PRODUCTS Aviation product Application RANGE OF APPLICATION • AVIATION • SPACE • LAND • MARINE Power Plant Offshore Oil Platform Generator MARINE New 新能源 Energy SPACE 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation 8
Slide 9: Aircraft Engines Equipped with NAFCO Components
Aircraft Engines Equipped with NAFCO Components GE Aerospace 2024 Investor Day March 7, 2024 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Rolls-Royce engine program: PW engine program: - Trent 1000 : B787 Dreamliner ✓ - PW1100 : A320 NEO ✓ - Trent 900 : A380 ✓ - PW1000 family (PW1500G): A220 ✓ - Trent 800 : B777 ✓ - PW800
Slide 10: 2019 Q1 ~ 2024 Q3 Quarterly Revenue Trend
2019 Q1 ~ 2024 Q3 Quarterly Revenue Trend AUTOMOTIVE FASTENERS 11% AEROSPACE AEROSPACE MACHINING COMPONENT FASTENERS 32% 57% 2024 Q1-Q3 TOTAL (SALES BY PRODUCT) Unit : NT$ Thousands Product Amount % Aerospace fasteners 1,462,350 57% Aerospace machining component 814,906 32% Automotive fasteners 292,
Slide 11: Business Development
BUSINESS DEVELOPMENT NUMBER OF NEW PRODUCT INTRODUCTION 800 Accumulated to Q3 600 544 643 852 798 734 400 463 200 0 2019 2020 2021 2022 2023 2024 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation 11
Slide 12: Core Development Direction
CORE DEVELOPMENT DIRECTION Strengthen the leading position of the global supplier of aerospace fasteners, aerospace hardware parts and machining parts ⚫ Expand production capacity and technical level, provide diversified products and services, meet changing market demand, and ensure that customers g
Slide 13: Technology & Product Roadmap
TECHNOLOGY & PRODUCT ROADMAP Strengthen NAFCO's competitiveness through product expansion and integration, improve manufacturing technology and quality assurance through artificial intelligence, and improve production efficiency through automation Engineered Products Smart Manufacturing Forging 2020
Slide 14: Smart Manufacturing
Smart Manufacturing Increase per capita output value, achieve excellent quality, and create differentiation 2018 2019 2020-2022 2023 2024 • Machine Networking AI Process Control • AI Automated AI Tool life monitoring • More knowledgeable process control • M2M System Production Line Expand more d
Slide 15: Smart Manufacturing
Smart Manufacturing Increase per capita output value, achieve excellent quality, and create differentiation KNOWLEDGEABLE PROCESS CONTROL ✽ 100% KEY FUNCTION VERIFICATION ✽ ENGINEERING KNOWLEDGE IS SYSTEMATICALLY RETAINED AI ASSISTANCE、AUTOMATED PRODUCTION LAYOUT FORGING、MOLDING AUTOMATION、SMART✽ IN
Slide 16: NAFCO Aviation Parts Development Roadmap
NAFCO AVIATION PARTS DEVELOPMENT ROADMAP Expand the range of part sizes, increase the product portfolio and product diversity ⚫ Combining Forging with Subsequent Processes to Create a NUT Competitive Series of Internal and External Threaded Aerospace Products Bolt Aerospace Hardware Components w
Slide 17: Development Direction of Aviation Forging
DEVELOPMENT DIRECTION OF AVIATION FORGING Expanding the Types of Forging Materials and Increasing the Complexity of Forged Shapes Expanding the Size of Forgings 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation 17
Slide 18: Commercial Turbofan Engine Forging Products
Commercial turbofan engine Forging Products Forgings Cover High-Pressure Turbine Section Products Material： ⚫ Inconel 718, A286, M152, 17-4 PH ◉ Ti64 Consistently broaden material variety to boost competitive edge Continue to expand material types to strengthen competitiveness 豐 達 科 技 股 份 有 限 公 司 Na
Slide 19: High-Precision Aerospace Machining Product Series
HIGH-PRECISION AEROSPACE MACHINING PRODUCT SERIES Milling: Around 600mm Max. Turning: Around 800mm Max. 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation 19
Slide 20: High Performance Aerospace Lock Nut Series
HIGH PERFORMANCE AEROSPACE LOCK NUT SERIES Full Range of Self-Locking Nut Products New Fastener Special Locking Nut Hex ◉ ◉ 10 point (Under Customer Validation) 12 point ◉ ◉ Spline Shank ◉ ◉ Barrel Channel ◉ ◉ Plate Hex and Double-Hex 豐 達 科 技 股 份 有 限 公 司 Land & Marine Applications National Aerospa
Slide 21: High-Performance Aerospace Bolt Series
HIGH-PERFORMANCE AEROSPACE BOLT SERIES Large bolt 、Thread size ≥ 1” Large bolt CONTINUE TO DEEPEN THE MANUFACTURING CAPABILITIES OF SUPER ALLOY BOLTS 、Thread size ≥ 2” FOR AVIATION AND SPACE ENGINES 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation 21
Slide 22: Focus of Automotive Product Development: Customized Products
THE FOCUS OF AUTOMOTIVE PRODUCT DEVELOPMENT---CUSTOMIZED PRODUCTS Connection between the battery case and the vehicle body(Watertight solution) 2024 Customized Standard parts Disc Brake Float Disc Kits Rivet Nut / Brass Insert (Co-designed with automakers & Tier 1) Continuous research and developmen
Slide 23: Global Aerospace Market Development Trends
GLOBAL AEROSPACE MARKET DEVELOPMENT TRENDS 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation
Slide 24: Global aviation industry will continue to thrive over next 20 years
The global aviation industry will continue to thrive over the next 20 years • Global air traffic is expected to grow 2.4 times by 2043 • Annual growth is expected to be about 8% in the short term, and about 3.6% annual growth thereafter 8% 3.6% Revenue Passenger Kilometers，收入乘客公里數 The RPK in Februar
Slide 25: Commercial Aircraft Market Trend
COMMERCIAL AIRCRAFT MARKET TREND New airplane demand • Airline will need around 50,170 aircraft to operate by 2043, with 43,975 aircraft (87%) of these being new builds. Changes in aircraft type demand • Boeing's Commercial Market Outlook (2023-2043) forecasts single-aisle airliners will account for
Slide 26: Boeing Commercial Market Outlook by Type
COMMERCIAL MARKET OUTLOOK ⚫ Airlines will need 43,975 new aircraft over the next 20 years Boeing 16, July 2024 33,380 By Type 767 , 777, 787 • The global fleet will double in 20 years, with nearly half of 1,525 8,065 1,005 deliveries for replacement Regional Jet Single-aisle Widebody Freighter 4% 76
Slide 27: Global Market Forecast 2024 (Airbus)
GLOBAL MARKET FORECAST 2024 ⚫ Airlines will need 42,430 new aircraft over the next 20 years Airbus, 2024 • LEAP-1A • PW1500G (GTF) • PW1100G-JM (GTF) 36,460 8,410 18,700 New New Deliveries Grow 4,130 Grow Deliveries 總新機數 新增需求 33,510 7,980 Not e: Addi ng the In-Service 17,760 14,810 Replac In-Service
Slide 28: Aviation market outlook optimistic, but challenges and risks coexist
The aviation market has an optimistic outlook, but challenges and risks coexist The aviation market continues to show an upward trend, but there is a serious shortage of skilled labor in the aerospace industry More than 30% of the workforce is set to retire, resulting in a shortage of approximately
Slide 29: Development of MRO has made up for loss of some new engines
The development of MRO has made up for the loss of some new engines and stabilized the demand for aviation parts. LEAP 引擎交付量 Maintenance, repair and overhaul (MRO) services 2000 1,570 1,438 1500 1,136 1000 845 500 0 2021 2022 2023 2024 EST GE’s latest forecast: LEAP engine deliveries will drop by 10
Slide 30: Investment Plan for Malaysian Factory
INVESTMENT PLAN FOR MALAYSIAN FACTORY MY NAFCO PRECISION SDN.BHD. 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation
Slide 31: MY NAFCO Precision Sdn. Bhd. Location
MY NAFCO PRECISION SDN.BHD. Negeri Sembilan Penang Kuala Lumpur Negeri Sembilan Port Klang Factory Kuala Lumpur Location INTL Airport 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation
Slide 32: MY NAFCO Precision Sdn. Bhd. Transportation
MY NAFCO PRECISION SDN.BHD. Sendayan Tech Valley Transportation To Kuala Lumpur：65 minutes To airport is around：40 minutes. Putrajay a To the city of Seremban：15 minutes Kuala Lumpur INTL Airport Factory Location 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation
Slide 33: MY NAFCO Precision Investment Plan
MY NAFCO PRECISION SDN.BHD. INVESTMENT PLAN Phase 1 Phase II Land 4.8 acre Land investment : 5M USD Equipment investment: 7M USD factory area：2,699 m2（29,052.04 ft2） Office building area：810 m2（8,718.84 ft2） Total area：3,509 m2（37,770.88 ft2） 2024 2025 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Nov 2027 Phase III Ex
Slide 34: MY NAFCO Precision (MYN) Operational Timeline
MY NAFCO PRECISION SDN.BHD. (MYN) Operational Timeline • Business license • Staff recruitment and training • MYN Location • Machinery • Contract signing • Manufacturing installation and • NADCAP Audit license setup 2023 2024 Q2 Q4 2025 Q2 Q3 Q3 Nov Q1 Q1 • Manufacturing • Staff recruitment • AS9100
Slide 35: Financial Performance
Financial Performance Chris Lee / CFO 豐 達 科 技 股 份 有 限 公 司 35 National Aerospace Fasteners Corporation 35
Slide 36: Sales Revenue, Net Income and EPS
SALES REVENUE、NET INCOME AND EPS Unit：NT$ Thousands 豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation 36
Slide 37: Asset and Liabilities
ASSET AND LIABILITIES Unit：NT$ Thousands 豐 達 科 技 股 份 有 限 公 司 37 National Aerospace Fasteners Corporation 37
Slide 38: Equity and Equity per Share
EQUITY AND EQUITY PER SHARE 豐 達 科 技 股 份 有 限 公 司 38 National Aerospace Fasteners Corporation 38
Slide 39: National Aerospace Fasteners Corporation
豐 達 科 技 股 份 有 限 公 司 National Aerospace Fasteners Corporation
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