Taisun Enterprise Co., Ltd. · TWSE:1218
Taisun Enterprise — Q3 2020 Earnings Presentation
22 slides from Taisun Enterprise's earnings presentation, Nov 17, 2020
Slide 1: Taisun Enterprise 2020Q3 Investor Relations Update
（Ticker:1218） Taisun Enterprise 2020Q3 Investor Relations Update November 17th 2020 1
Slide 2: Disclaimer
Disclaimer • The consolidation financial information included in this presentation were prepared based on IFRS and audited by a CPA. • Taisun Enterprise Co.,Ltd does not provide financial forecasts. Our actual results of operations, financial conditions or business prospects may differ from those ex
Slide 3: Q3 Operating Result, Taisun Profile, Performance Review, Financials
◼ Q3 Operating Result ◼ Taisun Profile ◼ Performance Review ◼ Financials 3
Slide 4: 2020Q3 Operating result
2020Q3 Operating result (NT$ 1000) Item 2020Q3 2019Q3 YoY Difference Amount % Amount % Amount % Sales 2,516,161 2,463,724 52,437 2% Cost 1,942,041 77.2% 1,954,466 79.3% (12,425) -1% Gross profit 574,021 22.8% 509,697 20.7% 64,324 13% Operating expense 402,056 16.0% 368,137 14.9% 33,703 9% Operating
Slide 5: YTD2020 (1Q-3Q) Operating result
YTD2020 (1Q-3Q) Operating result (NT$ 1000) Item 2020Q1~Q3 2019Q1~Q3 YoY Difference Amount % Amount % Amount % Sales 6,317,456 6,080,600 236,856 4% Cost 5,015,713 79.4% 4,922,457 81.0% 93,256 2% Gross profit 1,301,216 20.6% 1,159,375 19.1% 141,841 12% Operating expense 989,269 15.7% 973,041 16.0% 16
Slide 6: Taisun Profile
◼ Taisun Profile “70 years of experience and hard work, ready to soar “ • Core Business: Food & Beverage Key Products • Total Asset： NT$ 9.23 billion ◼ Canned Desserts • Amount of Capital： NT$ 4.9 billion ◼ Bottled Water • Ticker：1218 ◼ Beverages • FY2019 Revenue：NT$ 8 billion ◼ Cooking Oil • Leader
Slide 7: Taisun is a Hidden Gem
Taisun is a Hidden Gem ➢ A well-known brand: 70 years of history, beloved products for all ages ➢ Strong competencies for F&B manufacturing: mass production experience, product development know-how, patent & formula Revenue breakdown FY 2020Q1-Q3 Consumer Segment 58% Commercial Segment 30% Overseas
Slide 8: Ubiquitous presence, myriad channels
Ubiquitous presence, myriad channels ➢ Over 25, 000 retailors, hyper/super market places, wholesalers, chain stores, and restaurants in TW are selling Taisun products +2500 Hyper/Super Market +12000 Convenient Chain Store +10000 Traditional Shop/Chain +2700 H&B Care Chain Others Vending Machine Onli
Slide 9: Consumer Segment
Consumer Segment • Household cooking oil, beverage, bottled water, canned desert Market share ➢ Canned Desert #1 ➢ Ice Fruit Tea #1 ➢ Sparkling Water #1 ➢ Cooking Oil #2 ➢ Bottled Water #2 9
Slide 10: Commercial Segment
Commercial Segment • Restaurant cooking oil , soybean powder ➢ Commercial cooking oil provider # Top 4 ➢ Stable single-digit sales growth every year 10
Slide 11: Diversified product portfolio, fulfilling various market demands
Diversified product portfolio, fulfilling various market demands Durable and convenient ~40% • Energy drink -Buff Local champion • Bottled • Sparkling Water Water • Canned Desserts Proven profitable & successful business model • Bottled Drinks • Cooking oil (Household) Great popularity, easy access
Slide 12: Performance Review
Fell @ Performance Review ee
Slide 13: Domestic sales post stable growth and GM continue to expand
Domestic sales post stable growth and GM continue to expand thanks to improving operating execution and better product mix Commercial Segment Consumer Segment Sales (NT$m) Sales (NT$m) 5000 4760 29% 3000 2743 3.0% 2724 4302 4341 2632 4500 28% 28% 4051 28% 28% 2.6% 28% 2500 2.5% 4000 3641 2155 2.4% 2
Slide 14: Product innovation and development leading the growth
Product innovation and development leading the growth Cha Street – Beverage “Fast Fashion” ➢ In 2020 partnered with hip beverage brands DONTYELLATME and TUREDAN Cheers Sparkling Water ➢ Top sparkling water brand. Growing through continued innovation including launching seasonal lemon flavor and part
Slide 15: Product innovation and development leading the growth
Product innovation and development leading the growth Taisun Rice Bran Oil – Best Known Brand ➢ Taisun Rice Bran Oil brand is the industry’s most recognized brand with the second highest market share 泰山玄米油 Grass Jelly, New Promotions to a Traditional Snack ➢ Introduced limited editions of this tradi
Slide 16: Overseas business continues to grow at a healthy pace
Overseas business continues to grow at a healthy pace ➢ OEM business maintains a double digit growth rate ➢ We expect new clients in untapped markets to be the key revenue driver going forward Overseas Business 1,000 Taisun Product Shipment 400 OEM Shipment 900 350 OEM Sales 130 800 Taisun Product S
Slide 17: Invested companies: TW FamilyMart brings in uptrending cash flow
Invested companies: TW FamilyMart brings in uptrending cash flow ➢ Taisun holds 22.47% of TW FamilyMart receiving steady cash dividends every year ➢ As Taisun’s operating profit grows has grown rapidly, TW FamilyMart’s percentage contribution to net income has gradually decreased (NT$m) FY 2014 FY 2
Slide 18: A more favorable dividend policy for shareholders
A more favorable dividend policy for shareholders ➢ We paid a cash dividend of NT$0.9 (81% payout ratio) on FY2019’s earnings ➢ We are strongly committed to paying a dividend that is aligned with the company’s earnings growth Cash Dividend 1 0.9 0.9 0.8 0.8 0.7 0.6 0.5 0.4 0.4 0.3 0.2 0.1 0 0 0 2015
Slide 19: Financials
◼ Financials • Continued EPS expansion • Stable investment income • Strong balance sheet 19
Slide 20: Income statement
Income statement ➢ Over the past 3 years, we have been able grow earnings and expand ROE and ROA through improvement in operations, better product mix and cost controls (NT$ 100mn) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1~Q3 Sales 80.18 81.11 76.82 79.02 80 63.17 Gross profit 13.08 14.27 1
Slide 21: Balance sheet
Balance sheet (NT$ 100mn) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1~Q3 Cash & equivalents 7.26 8.08 4.66 12.8 11.47 6.45 Accounts receivable 9.92 11.27 10.48 10.57 10.80 14.43 Inventories 7.97 6.46 6.27 6.13 6.80 6.66 Current assets 28.74 31.34 27.98 33.12 35.62 32.67 LT investments 19.58 2
Slide 22: New Era, New Way
New Era, New Way Investor Relations； IR@taisun.com.tw 22