Bizlink Holding Inc. · TWSE:3665
Bizlink — Q2 2024 Earnings Presentation
26 slides from Bizlink's earnings presentation, August 2024
Slide 1: BizLink Holding Inc Investor Presentation 2Q 2024
BizLink Holding Inc 3665.TT Investor Presentation 2Q 2024 Version Aug 2024 © 2024 BizLink Group BizLink Property 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The contents of this presentation are based on available information, and the Company’s views when made. The information in this presentation may contain descriptions of the future prospects of the Company and its subsidiaries, and are subject to risks and uncertainties, which
Slide 3: Corporate Highlights: Second Quarter 2024
I. Corporate Highlights: Second Quarter 2024 4 x 4 Strategy: Business Diversification ◼ Gradually exiting rolling slowdowns and destocking across our end-markets ◼ Productivity and efficiency gains + favorable product mix bolstering gross margins ◼ HPC and Capital Eqpt + TMP to initiate next multi-y
Slide 4: Corporate Highlights: Noteworthy M&As
I. Corporate Highlights: Second Quarter 2024 4 x 4 Strategy: Noteworthy M&A’s ◼ Speedy in 2020 and INBG (TMP) in 2022 acquisitions boosted semi cap capabilities and capacities ◼ Pending Easys M&A means capital eqpt may soon become biggest category in Industrial business ◼ Preparing to maximize growt
Slide 5: Corporate Highlights: Footprint Diversification
I. Corporate Highlights: Second Quarter 2024 4 x 4 Strategy: Footprint Diversification ◼ Strengthen NorAm and SEA to meet rising local-for-local needs Batam ◼ 2 new sites done: target initial production in early 2025 - Tainan: increase Industrial exposure - Batam: increase IT DataComm and Industrial
Slide 6: Financial Highlights: Second Quarter 2024
II. Financial Highlights: Second Quarter 2024 TOTAL SALES GPM OPM NET PROFIT EPS 2Q24 2Q24 2Q24 2Q24 2Q24 NT$ 12.98B 28.11% 11.42% NT$ 1,002M NT$ 6.13 15 30% 25.80% 26.70% 26.34% 26.20% 26.30% 25.50% 24.52% 28.11% 24.20% 25% 21.90% 14 20% 11.42% 13 15% 12.10% 8.86% 10.70% 10.60% 10.80% 10% 9.00% 12
Slide 7: Financial Highlights: Segment Sales
II. Financial Highlights: Second Quarter 2024 Industrial Elect. App. Automotive IT DataComm 2024 2Q 40% 18% 18% 23% QoQ Est. Actual Est. Actual Est. Actual Est. Actual YoY Actual Actual Actual Actual © 2024 BizLink Group BizLink Property 7
Slide 8: Financial Highlights: YoY Sales by Segment
II. Financial Highlights: Second Quarter 2024 YoY Industrial Sales YoY IT DataComm Sales 400% 40% 300% 20% 200% 100% 0% 4Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 0% -20% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 -100% -40% • Positive YoY growth
Slide 9: Financial Highlights: Sales by Region
II. Financial Highlights: Second Quarter 2024 USD sales (% of total), QoQ Change +2% USD sales (% of total), YoY Change -5% - 11% - 19% 167 40% 184 40% ~ ~ 149 35% 45% 45% ~ 149 35% 40% + 7% + 6% ~ - 5% + 1% 40% + 21% + 31% 20% 92 20% 88 20% 97 20% 86 ~ 82 20% 92 20% ~ ~ ~ 20% 87 88 20% 25% ~ 73 15%
Slide 10: Financial Highlights: Business Overview and Sales Mix
II. Financial Highlights: Second Quarter 2024 Business Overview ◼ Lower for longer recovery may continue in 2H 2024 ◼ Conservative view on near-term underlying demand ◼ Pricing power remains intact and closely working with customers ◼ Pockets of optimism and growth materializing with rising impact 1
Slide 11: Financial Highlights: Balance Sheet Updates
II. Financial Highlights: Second Quarter 2024 Balance Sheet Updates ◼ Strategic deployment of capital towards areas with greater long-term growth potential ◼ Fund Easys M&A with minimal external funding: emergent capability to internally fund smaller M&A ◼ 7th straight quarter of positive FCF and li
Slide 12: Financial Highlights: Third Quarter 2024 Outlook
II. Financial Highlights: Third Quarter 2024 Outlook Industrial Elect. App. Automotive IT DataComm 2024 QoQ 3Q Est. Est. Est. Est. Capital Eqpt Highlights TMP, Energy New Products --- HPC Lowlights FA Old Products EV Peripherals © 2024 BizLink Group BizLink Property 12
Slide 13: Operational Highlights: Efficiency and Productivity Up
III. Operational Highlights: Efficiency and Productivity Up Florian Hettich: Chief Operating Officer ◼ Became BizLink’s first COO ever approximately one year ago ◼ Various excellence initiatives introduced more than one year ago ◼ Efficiency and productivity measures across 2 business groups - Shore
Slide 14: Operational Highlights: 2024 Outlook IT DataComm
III. Operational Highlights: 2024 Outlook IT DataComm ◼ High-impact HPC business eclipsing increasingly smaller Peripherals business ◼ Successful transformation: proven track record of re-inventing ourselves - Multiple growth phases: from Peripherals to Electric Vehicles - Entering into next one: Hi
Slide 15: Operational Highlights: 2024 Outlook Industrial
III. Operational Highlights: 2024 Outlook Industrial ◼ Factory Automation and Healthcare looking to bottom ◼ Capital Eqpt and TMP to increasingly drive segment growth - Will lead overall recovery in Industrial segment - Will help to realize more cash generation Capital Eqpt + TMP ◼ Multiple areas of
Slide 16: Operational Highlights: 2024 Outlook EA and Auto
III. Operational Highlights: 2024 Outlook Electrical Appliance ◼ Became larger than Auto segment for first time ◼ Technical milestone achieved: value expansion - Mass production and initial shipments of new systems projects Auto ◼ Remained conservative, especially on EVs, since mid-last year - High
Slide 17: Q&A
Q&A © 2024 BizLink Group BizLink Property 17
Slide 18: Appendix: Investment Thesis
APPENDIX: Investment Thesis Producing Locally for Local Demand Applying Our Core Expertise ✓ 34 production sites in 4 regions ✓ Solutions Provider for NorAm, Europe, SEA, East Asia Industrial, IT DataComm, Auto, Elect. App. ✓ Each major region is high-mix and high- ✓ Moving up value chain to supply
Slide 19: Appendix: Diversification and Global Footprint
APPENDIX: Diversification Industrial Automotive Global Footprint and Capabilities • Business nature: HMLV1 • Business nature: HVLM2 • Capital Equipment • Silicone • Energy • Charging 13 • Healthcare • Non-EV related 6 11 • Factory Automation • Electric Vehicle North Europe • Regions: all 4 regions •
Slide 20: Appendix: Bigger Picture Perspective
APPENDIX: Bigger Picture Perspective Objective Building an enterprise with stable growth through all cycles Focused on For Multiple With Sustainability Interconnects Applications in Mind ✓ Segments: Industrial, IT ✓ Diversification Strategy: High- ✓ ESG: Environmental, Social, DataComm, Automotive,
Slide 21: Appendix: Corporate Sustainability
Our commitment to sustainability creates long-term APPENDIX: value for us and our stakeholders by helping us ride Corporate Sustainability the green wave, mitigate climate risks, reduce costs, and build brand value. E GHG Emission Our Actions Renewable FTSE-Russell Our Results Consistent Energy gene
Slide 22: Appendix: Capital Allocation
APPENDIX: Capital Allocation Fund-Raising History: Five Rounds Free Cash Flow (NTD, M) Tapping into Capital Markets to Boost Strategic Flexibility Building Solid Foundation with Stronger FCF Partial 5,000 2023 - ECB-5 ($150m), CI (NT$1.15B) Status Conversion 4,000 Partial 2022 - ECB-4 (US$125m) + GD
Slide 23: Appendix: Condensed Income Statement
APPENDIX: Condensed Income Statement 2019 2020 2021 2022 2023 Sales 23,092,145 22,537,767 28,564,375 53,757,171 51,051,791 GPM 24.36% 25.34% 23.21% 25.65% 24.65% Opex 3,215,562 3,265,296 3,971,071 8,218,883 8,349,633 OPM 10.44% 10.85% 9.31% 10.36% 8.30% Non-OP -74,997 -189,786 -17,006 -253,812 -794,
Slide 24: Appendix: Condensed Balance Sheet
APPENDIX: Condensed Balance Sheet 2019 2020 2021 2022 2023 Cash & Equiv. 9,020,132 37.56% 5,360,003 23.59% 3,209,592 12.55% 8,497,568 15.90% 10,627,389 19.43% Inventory 4,077,127 16.98% 4,649,474 20.47% 6,378,838 24.94% 12,323,217 23.06% 10,102,719 18.48% Net A/R 4,836,085 20.14% 5,235,100 23.04% 7,
Slide 25: Appendix: Condensed Cash Flow Statement
APPENDIX: Condensed Cash Flow Statement 2019 2020 2021 2022 2023 Starting Cash 3,560,272 9,020,132 5,360,003 3,209,592 8,497,568 Net Cash from Operating 3,060,503 1,871,527 364,965 2,779,419 7,446,277 Cash Flow from Investing PP&E -710,585 -759,861 -1,244,650 -1,877,242 -2,558,729 Others -498,747 -1
Slide 26: Contact us
Upcoming IR Activities Contact us Sept 03: TW, Morgan Stanley Conference Sept 19: TW, Yuanta Conference Sept 24-25: TW, UBS Conference Mike Wang Manager, Investor Relations T +886 2 8226 1000 ext. 52663 E mike_wang@bizlinktech.com Stay Connected @BizLinkTechnology Jimmy Hsu Deputy Manager, Investor