Slide 1: Investor Conference
Investor Conference Transform & Insist Move to our future
Slide 2: Outline
Outline Company Introduction Financial Highlights Market Opportunity Development Strategy Transform & Insist Move to our future
Slide 3: Main shareholders
Company Introduction Financial Highlights Market Opportunity Development Strategy Main shareholders RECHI was established in Dec 19, 1989 Human Resources: 6171 members (Until Dec 31, 2017) 2017 revenue NT$ 19,827 mn SAMPO Corporation 26.43% China Steel Corporation 4.66% Sharp Corporation 4.62% Other
Slide 4: Organization structure
Company Introduction Financial Highlights Market Opportunity Development Strategy Organization structure R E C H I P R E C I S I O N C O . , LT D 100% 100% 45% Rechi Investments Rechi Holdings Co., Dyna Rechi Co., Co., Ltd. Ltd. Ltd. 100% 100% 100% Rechi International Rechi Investments 77.78% 100% D
Slide 5: Location of facilities & Production Capacity
Company Introduction Financial Highlights Market Opportunity Development Strategy Location of facilities & Production Capacity Cover area : 298,149m2 Cover area : 151,016m2 Cover area : 29,652m2 JR/DRJ QR KR HQ and R&D center Current Current capacity 9 million 6 million Sales head office in Non CHIN
Slide 6: Milestone of RECHI
Company Introduction Financial Highlights Market Opportunity Development Strategy Milestone of RECHI Established Jiujiang Accumulative Sales Quantity reached 100 million sets. factory in CHINA Set up Japan liaison office DYNA RECHI (Pingtung factory, Jiujiang factory was setup) Set up Thailand servi
Slide 7: Financial Highlights
Financial Highlights Transform & Insist Move to our future
Slide 8: Revenue growth of RECHI
Company Introduction Financial Highlights Market Opportunity Development Strategy Revenue growth of RECHI Unit : k Annual Sales Quantity exceeded 17 million sets. Unit : NT$ mn 20,000 25,000 18,000 Accumulative Sales Quantity reached 100 million sets. 17,657 16,000 20,000 Annual Sales Quantity excee
Slide 9: Revenue growth and Margins
Company Introduction Financial Highlights Market Opportunity Development Strategy Revenue growth Unit : NT$ mn % Revenue Growth YoY 19,827 20,000 18,127 100% 16,794 17,674 16,473 15,630 80% 15,285 15,000 12,587 60% 40% 10,000 9,493 8,136 20% 6,922 0% 5,000 -20% 0 -40% 07" 08" 09" 10" 11" 12" 13" 14"
Slide 10: ROE & ROA, Operating CF & Capex
Company Introduction Financial Highlights Market Opportunity Development Strategy ROE & ROA 20% 14.6% 14.6% 14.4% 15% 12.6% 12.6% 11.0% 10.0% 9.1% 10% 8.1% 7.5% 7.2% 6.8% 6.1% 6.3% 5.5% 4.7% 4.9% 5% 5.6% 0.6% 0% -1.7% -5% -3.6% ROE ROA -5.5% -10% 07" 08" 09" 10" 11" 12" 13" 14" 15" 16" 17" Operating
Slide 11: Dividend policy
Company Introduction Financial Highlights Market Opportunity Development Strategy Dividend policy 2013 2014 2015 2016 2017 EPS (NT$) 2.02 2.3 1.86 2.8 2.1 Cash DPS (NT$) 1.5 2 1.6 2.28 1.75 Payout ratio (%) 74.3 87.0 86.0 81.4 83.3 Cash yield (%)* 5.1 8.6 6.2 7.0 5.8 * Based on share price on follow
Slide 12: Income statement
Company Introduction Financial Highlights Market Opportunity Development Strategy Income statement Unit in Thousand NT$ 2018H1 ％ 2017H1 ％ YoY % Sales volume 10,419,167 9,014,807 1,404,360 15.6 Sales revenues 12,582,359 100 10,035,776 100 2,546,583 25.4 Cost of finished goods (Material and labor) -10
Slide 13: Balance sheet
Company Introduction Financial Highlights Market Opportunity Development Strategy Balance sheet Unit in Thousand NT$ 2018H1 ％ 2017H1 ％ YoY % Cash and equivalents 2,844,329 10 1,668,898 8 1,175,431 70 Accounts receivable,net 11,156,998 41 7,961,686 37 3,195,312 40 Inventories 2,114,640 8 2,024,516 9
Slide 14: Cash flow statement
Company Introduction Financial Highlights Market Opportunity Development Strategy Cash flow statement Unit in Thousand NT$ 2018H1 2017H1 Cash, beginning of year 1,875,853 2,608,828 Net cash provided by operating activities -57,090 199,432 Cash flow from investment activities -1,036,016 -705,100 (Dec
Slide 15: Market Opportunity
Market Opportunity Transform & Insist Move to our future
Slide 16: The market trend of Global A/C
Company Introduction Financial Highlights Market Opportunity Development Strategy The market trend of Global A/C Unit：10k 300,000 40% 36.0% 250,000 30% 200,000 186,430 20% 175,550 165,300 155,650 150,000 133,550 9.2% 133,210 10% Sales 122,310 114,420 6.2% 6.2% 6.2% Growth YoY 2.1% 100,000 -0.3% 0% 線
Slide 17: The market trend of rotary compressor in CHINA
Company Introduction Financial Highlights Market Opportunity Development Strategy The market trend of rotary compressor in CHINA Unit：10k 300,000 35.0% 260,000 30.0% 250,000 26.9% 240,000 220,000 25.0% 192,724 20.0% 200,000 17.3% 15.0% 152,520 13.6% 151,825 150,000 10.5% 129,990 133,621 10.0% sales
Slide 18: The market trend of BLDC Motor in CHINA
Company Introduction Financial Highlights Market Opportunity Development Strategy The market trend of BLDC Motor in CHINA Unit：10k 300,000 35.0% 29.2% 30.0% 250,000 24.1% 25.0% 22.4% 200,000 20.0% 15.3% 12.5% 15.0% 13.4% 150,000 Sales 122,340 10.0% 9.4% 108,740 Growth YoY 95,900 100,000 83,170 5.0%
Slide 19: The top 6 of rotary compressor makers in CHINA
Company Introduction Financial Highlights Market Opportunity Development Strategy The top 6 of rotary compressor makers in CHINA Unit：10k 70,000 60,000 61,010 50,000 49,620 46,817 44,080 GMCC 42,410 40,000 LANDA 35,020 36,130 HIGHLY 33,310 30,000 30,550 RECHI 27,210 PANASONIC 24,273 20,000 LG 18,106
Slide 20: Owns complete global marketing channels and serviced 28 countries, 148 Clients
Company Introduction Financial Highlights Market Opportunity Development Strategy RECHI Sales : Geographic distribution RECHI Sales : Application distribution Taiwan, 1.6% 合計 Korea, 0.8% India, 1.8% Middle East, 2.4% Split-Type A/C 36.9% Japan, 4.0% Heat Pump Dryer 13.5% S American, 5.3% Split-Type
Slide 21: Development strategy
Development strategy Transform & Insist Move to our future
Slide 22: Development Strategy
Company Introduction Financial Highlights Market Opportunity Development Strategy Development Strategy Pursue Create Opportunities Market for new energy- Demand saving markets THE STRATEGY OF VALUE REVOLUTION New energy- Technology saving Innovation products 22 Transform & Insist Move to our future
Slide 23: Compressor
Company Introduction Financial Highlights Market Opportunity Development Strategy Compressor Production capacity Development strategy (Unit: 10k) TR QR JR High energy-efficiency : RECHI compressors can meet 30,000 the various international energy efficiency standards.. 25,000 Larger size : Cabinet A
Slide 24: BLDC Motor
Company Introduction Financial Highlights Market Opportunity Development Strategy BLDC Motor Production capacity Development strategy (Unit: 10k) DRJ DR 10,000 Production Maximization : Focus on A/C、Air Purifier、Gas Water Heater BLDC motor 8,000 1,500 and develops speedily. 6,000 1,500 Subversive in
Slide 25: Subversive innovation
Company Introduction Financial Highlights Market Opportunity Development Strategy Subversive innovation Now 2019 Future RHCHI 30th Core business Value Innovation The business model of Subversive innovation products and Core Technology • The module products of inverter aircon •Compressor COMP/Inverte
Slide 26: Create unlimited possibilities for the Energy Saving Industry
Create unlimited possibilities for the Energy Saving Industry. Become the top provider of proactive Energy Saving Product. Transform & Insist Move to our future