Superalloy Industrial Co., Ltd. · TWSE:1563
Superalloy Industrial — Q3 2024 Earnings Presentation
36 slides from Superalloy Industrial's earnings presentation, Nov 5, 2024
Slide 1: SuperAlloy Industrial Co. (1563 TT) Investor Presentation
SuperAlloy Industrial Co. (1563 TT) 2Q24 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: Agenda
Agenda 3Q24 Results And Guidance SAI’s Growth Strategy And Goals Q&A 3
Slide 4: 3Q24 Results And Guidance
3Q24 Results And Guidance 4
Slide 5: 3Q24 Income Statement
3Q24 Income Statement 新台幣 百萬 3Q24 2Q24 3Q23 QoQ (%) YoY (%) Net Revenue 1,718 1,873 1,859 (8.3) (7.6) Gross Profit 446 505 395 (11.8) 12.7 Gross Margin 26% 27% 21% Operating Expenses 278 247 228 12.5 22.2 SG&A percent of Sales 16% 13% 12% Operating Income 167 258 168 (35.1) (0.2) Operating Margin 10
Slide 6: 9M24 Income Statement
9M24 Income Statement NT$ million 9M24 9M23 YoY% Net Revenue 5,546 5,573 (0.5) Gross Profit 1,471 1,195 23.2 Gross Margin 27% 22% Operating Expenses 774 713 8.7 SG&A percent of Sales 14% 13% Operating Income 697 482 44.6 Operating Margin 13% 9% Net Non-Operating Income (Loss) 54 85 (37.0) Pre-Tax In
Slide 7: 3Q24 Balance Sheet
3Q24 Balance Sheet 3Q24 2Q24 3Q23 NT$ million QoQ (%) YoY (%) $ % $ % $ % Cash and Cash Equivalents 1,751 10 1,994 11 767 4 (12.2) 128.2 Notes & Accounts Receivable, Net 989 6 1,044 6 1,054 6 (5.3) (6.2) Inventories 5,870 34 5,736 33 6,591 38 2.3 (10.9) Other Current Assets 175 1 188 1 226 1 (7.1) (
Slide 8: Outlook
Outlook ● Expected Double-Digit Revenue Growth in 2025: Due to global economic conditions and a slowdown in the Chinese automotive market, demand for luxury vehicles has decreased. SAI anticipates a low single-digit revenue decline in 2024 but expects to return to double-digit growth in 2025, driven
Slide 9: SAI's Growth Strategy And Goals
SAI’s Growth Strategy And Goals 9
Slide 10: SAI Aims to Maximize Shareholder Return
SAI Aims to Maximize Shareholder Return SAI’s Three-Step Approach to Maximizing Sustainable Profits and Shareholder Returns 01 02 03 Enhance Operational Efficiency Reinforce the and Profitability Leading Position Sustainable in the Global 2-1 2-2 2-3 and Luxury/Premium corporate Car Expand Net Green
Slide 11: 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 12: Improve Operational Efficiency through Expanding Net Shape Forged Wheels
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 suita
Slide 13: 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. 71 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 an
Slide 14: Increase Profitability by Using Recycled Aluminum
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 Vibra
Slide 15: 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. Usage of rate of RESAICAL® INTO recycled aluminum in forged wheels reached 40% in 2024, with an expected increase to 50% in 2
Slide 16: Promoting diverse aluminum applications to boost long-term profitability
Promoting diverse aluminum applications to boost long- term profitability With aluminum's lightweight, strength, and corrosion resistance, SAI aims to raise non-passenger vehicle aluminum wheel revenue from 15% to over 40% in three years Semiconductor Mobility Heavy electrical Others equipment (Fron
Slide 17: 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 Long-term operational goals : 15-20% Operating Margin Double-Digit ROE Source: TEJ 17
Slide 18: 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.3 Machining Tier-1 supplier Profitability • Optimize operational efficiency I
Slide 19: Q&A
Q&A 19
Slide 20: Key financial numbers
Key financial numbers Source: TEJ 20
Slide 21: Appendix
Appendix 21
Slide 22: 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 23: Strengthen Industry Leadership
01 Strengthen Industry Leadership 23
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 29
Slide 30: Increasing Efficiency & Profitability
02 Increasing Efficiency & Profitability 30
Slide 31: 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 32: Sustainability
03 Sustainability 32
Slide 33: Independent Directors Reached 40% of Board Seats; Two Female Directors In The Board
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 34: Pingtung Plant Production Capacity Plan
Pingtung Plant Production 2022E Capacity 2025E Capacity 2027E Capacity Capacity Plan Forging 300,000 600,000 900,000 Machining 300,000 600,000 900,000 Polishing 300,000 600,000 900,000 Painting 600,000 600,000 600,000 Recycle Aluminum 40,000 ton Planning (Based on no. of net shaped forged wheels) 34
Slide 35: Luxury and premium segment sales growth
◆ In 2021, while global car sales grew by only 4%, the growth rate for high-end models was 21.6%. Brands such as Aston Martin, Bentley, BMW, Rolls Royce, Porsche, Ferrari, Maserati, Lamborghini, and Bugatti all set new historical sales records. ◆ In 2022, global car sales decreased by 1% year-on-yea
Slide 36: Aluminum penetration continues to grow in vehicles
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 weight. Average luxury car w
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