Slide 1: Investor Conference
Investor Conference 27 Sep. FY23
Slide 2: Agenda
Agenda • Welcome C. M. Yang , Vice Chairman • 2023 H1 financial and ESG practices Justin Ko , CFO • 2023 H1 market review M. F. Feng , General Manager • Future operational challenges and opportunities M. F. Feng , General Manager • Q&A 2
Slide 3: Safe Harbor Notice
Safe Harbor Notice • RECHI’s statements of its current expectations are forward looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. • Except as required by law, we undertake no obligation t
Slide 4: 2023 H1 financial and ESG practices
2023 H1 financial and ESG practices 4
Slide 5: 2023 H1 Summary of Operational Highlights-1
2023 H1Summary of Operational Highlights-1 ◆Sales: Breakthrough in DC inverter compressor orders and optimize product mix. • Sales totaled 7.539 million sets, a year-on-year decrease of 17%, with the European clothes dryer market declining by 60.6% and the North American Unitary market declining by
Slide 6: 2023 H1 Summary of Operational Highlights-2
2023 H1Summary of Operational Highlights-2 ◆Production: Strengthen cost competitiveness and carry out comprehensive activities to improve materials and labor costs. • Expand supply chain resources and effectively reduce material procurement costs, saving approximately NT$80.607 million in main mater
Slide 7: Group Consolidated Gross Profit Margin Trend Chart in the past four years
Group Consolidated Gross Profit Margin Trend Chart in the past four years unit:% 15.6 14.2 12.8 11.8 12.6 12 9.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020年 2021年 2022年 2023年 7
Slide 8: 2023H1 RECHI Sales: Application ratio
2023H1 RECHI Sales : Application ratio Sales volume (%) YOY (%) 40.0% RV A/C, 0.5% 35.0% 33.2% Window Industrial 20.0% A/C, 2.1% PTAC, 3.4% application, 0.4% Unitary, New application, 2.2% 4.8% 0.0% -1.0% -3.3% Split-type A/C Heat pump Dehumidifier Portable A/C New PTAC Unitary Window A/C RV A/C Ind
Slide 9: 2023H1 RECHI Sales: Geographic ratio (End market)
2023H1 RECHI Sales : Geographic ratio (End market) Sales volume (%) YOY (%) 60.0% N Africa/ Middle East / West Asia, 2.1% South 40.0% 39.3% Asia, Latin American, 1.3% 4.6% East Asia, 6.5% 20.0% 20.0% 9.9% China, 33.3% 0.0% SE Asia, 10.4% CHINA EUROPE NORTH SE ASIA EAST ASIA LATIN N AFRICA/ SOUTH ASI
Slide 10: 2023 H1 Income statement
2023 H1 Income statement Unit in Thousand NT$ 2023 H1 % 2022 H1 % YOY Growth rate% Sales volume of compressor 7,539,892 9,084,826 -1,544,934 -17.0 Sales revenues 8,393,272 100 11,054,141 100 -2,660,869 -24.1 Cost of goods sold -7,149,851 -85 -9,758,391 -88 2,608,540 26.7 Gross margin 1,243,421 15 1,
Slide 11: 2023 H1 Balance sheet
2023 H1 Balance sheet Unit in Thousand NT$ 2023 H1 % 2022 H1 % YOY % Cash and current financial assets 3,703,802 16 3,961,173 15 -257,371 -6 Accounts receivable, net 7,311,830 31 7,485,005 28 -173,175 -2 Inventories 1,581,651 7 2,342,865 9 -761,214 -32 Property,plant and equipment,net 5,518,607 24 6
Slide 12: 2023 H1 Cash flow statement
2023 H1 Cash flow statement Unit in Thousand NT$ 2023 H1 2022 H1 Cash and Cash Equivalents at Beginning of Period 4,482,658 3,045,098 Net cash provided by operating activities -147,659 476,502 Cash flow from investment activities 174,997 92,897 (Decrease) increase in short-term loans,net -578,503 53
Slide 13: RECHI Carbon Reduction Planning and Implementation Results
RECHI Carbon Reduction Planning and Implementation Results Carbon reduction implementation status: Carbon July 2022 Completed ISO 14064-1: 2018 emissions of a single compressor decreased by 2.04% Greenhouse Gas Inventory third-party inspection. December 2023 It is expected to promote the 2022 Jan.-J
Slide 14: ESG Practices
ESG Practices Corporate Governance Exhibition Participation • The corporate governance evaluation has • With the theme of Colorful prides with Rechi improved for four consecutive years, ranking inside the green home appliance ecosystem, between 21% and 40% of the rankings. RECHI participated in the
Slide 15: ESG Practices
ESG Practices Industry-University Cooperation Political and Business Meeting Sustainable Public Welfare • Technology takes root in Taiwan. • Taoyuan City Economic Development Bureau-Green • Care for the environment and • .Join hands with National Yunlin University of Seminar and Exchange Meeting. ca
Slide 16: 2023 H1 market review
2023 H1 market review Tn RECHI
Slide 17: Sales Trend of Rotary Compressors in China
Sales Trend of Rotary Compressors in China unit: K / sets sales volume YOY China rotary compressor • Despite adverse factors such as COVID-19 and the Russian-Ukrainian war from 2020 to 2022, the HVAC&R industry is still booming, driving the demand for the compressor industry to continue to grow. Amo
Slide 18: RAC Market Growth and Decline in 2023 H1
RAC Market Growth and Decline in 2023 H1 • According to actual interviews and questionnaire surveys by JARN, the global household air conditioner market will only grow by 4% year- on-year in the first half of 2023, mainly due to the decline in purchasing power caused by global inflation. • Affected
Slide 19: Future Operational Challenges and Opportunities
Future Operational Challenges and Opportunities 19
Slide 20: Political and Economic Situation
Political and Economic Situation ➢ Although high inflation in various countries has gradually declined, global central banks are expected to maintain tightening monetary policies and high interest rates for a certain period of time in order to avoid a resurgence of inflation, which will continue to
Slide 21: RECHI Development Strategy
RECHI Development Strategy Pursue Create Opportunities Market for new energy- Demand saving markets THE STRATEGY OF VALUE REVOLUTION New energy- Technology saving Innovation products 21
Slide 22: Future Development Direction of the Company
Future Development Direction of the Company 1 Accelerate product iteration and steadily expand market share Seize the development opportunities in emerging countries and actively 2 expand markets in India, Latin America and Africa Based on the operating performance of Taiwan's heat pump terminal mar
Slide 23: Q&A
Q&A 23
Slide 24: Tr futu
& Insist Move to ou form r futu ans re Tr RECHI inside Create unlimited possibilities for the Energy Saving Industry. Become the top provider of proactive Energy Saving Product. 24