Agenda. 1. Company Introduction 2. Financial Highlights 3. Market Opportunity and Competitive Advantage 4. Future Prospects

Transcription

1 Investor Conference

2 Agenda 1. Company Introduction 2. Financial Highlights 3. Market Opportunity and Competitive Advantage 4. Future Prospects 2

3 Company Introduction 3

4 Main shareholders SAMPO Corporation 27.03% China Steel Corporation 4.91% Sharp Corporation 4.86% Porite Taiwan Co., Ltd 2.09% National Electric Appliance Co., Ltd 1.71% Data as of June 2,

5 Organization structure RECHI PRECISION CO., LTD 100% 100% 45% Rechi Investments Co., Ltd. RechiHoldings Co., Ltd. Dyna Rechi Co., Ltd. 100% 100% 100% 100% RechiInternational Holdings Co., Ltd. Rechi Investments Holdings Co., Ltd % 100% Dyna RechiHoldings Co., Ltd. 100% 100% 100% Dongguan Rechi Compressor Co., Ltd. GR Holdings (Hong Kong) Limited Rechi Precision(Qingdao)Elect ric Machinery Limited TCL Rechi (Huizhou) Refrigeration Equipment Company Limited Rechi Precision(Jiujiang) Electric Machinery Limited Dyna Rechi Jiujiang Co., Ltd. 100% 50% 50% 67.86% 25% Rechi Refrigeration Dongguan Co. Ltd. Qingdao Rechi Electric Machinery Sales Company Rechi Precision (Huizhou)Mechanism Company 5

6 Location of facilities Cover area: 151,016m 2 Cover area : 29,652m 2 Qingdao factory: compressor QR Kwanyin factory: HQ and R&D center KR Cover area: 298,149m 2 JR/DRJ America Office India Office DC compressor and BLDC motor Cover area : 34,194m 2 HR 占地面積 : 160,000m 2 TR Cover area: 20,000m 2 DNR Huizhou factory: compressor Humen factory: compressor and motor Pingtung factory: BLDC motor 6

7 RECHI milestone 2020 Annual Sales Quantity exceed 10million sets Accumulative Sales Quantity reached 100 million sets Accumulative Quantity of July 31, 2016 Sales:129,538,887 sets Production :130,675,435 sets Target:Accumulative Sales Quantity reached 200 million sets Developed 39F with R290 Application Developed 20F/28F DC Compressor with R134a Application R Project with ITRI 1989 Developed 39F with R134a and R410a Application Developed 44F DC Compressor with R410A Application Developed 44F / 50F with R32 Application 7

8 Financial Highlights 8

9 RECHI Sales : Geographic distribution N American 24% S American 8% Europe 28% Middle East 2% India 2% China 13% SE Asia 15% Taiwan 3% Japan 5% data statistics :

10 The sales quantity of Heat-Pump Dryer compressor Market Share: more than 80% in Europe (Unit: 10k) '10 '11 '12 '13 '14 '15 '16(F) '17(F) '18(F) '19(F) 10

11 (Unit: NT$mn) Revenue growth Margins 11

12 ROE and ROA (Unit: NT$mn) Operating CF & CAPEX 12

13 Dividend policy EPS (NT$) Stock DPS (NT$) Cash DPS (NT$) Payout ratio (%) Cash yield (%)* * Based on share price on following year closing before ex-dividend day 13

14 Income statement 14

15 Balance sheet Unit in Thousand NT$ 2016H1 % 2015H1 % YoY % Cash and equivalents 3,098, ,222, ,124, Accounts receivable,net 3,449, ,062, , Inventories 1,765, ,793, ,264-2 Property,plant and equipment,net 5,994, ,776, ,794 4 Total assets 21,088, ,338, ,250,572-6 Total current liabilities 10,069, ,944, ,611-8 Long-term liabilities 251, , , Total liabilities 12,054, ,852, ,358-6 Total stockholders' equity 9,033, ,485, ,

16 Cash flow statement Unit in Thousand NT$ 2016H1 2015H1 Cash, beginning of year 4,242,008 4,598,024 Net cash provided by opera 640, ,567 Cash flow from investment -362,347-1,271,210 (Decrease) increase in short-te -644, ,486 (Decrease) increase in long-te -72,853 0 others -704,765-56,268 Cash, end of year 3,098,466 4,222,599 16

17 Market Opportunity and Competitive Advantage 17

18 Global A/C market trend (Unit: 10k) RY : August-July Reference : IOL, HENGTA, GI 18

19 China top 10 A/C makers (Unit: 10k) Maker 2016 年 Growth (H1) (H1) 2015 Growth 2014 Growth 2013 Growth 2012 GREE % % % % 3734 MIDEA % % % % 2419 HAIER % % % % 745 CHIGO % % % % 480 AUX % % % % 425 TCL % % % % 354 HISENSE % % % % 282 LG % % % % 333 PANASONIC % % % % 379 CHANGHONG % % % % 168 OTHERS % % % % 1094 TOTAL % % % % Reference : IOL 19

20 China top 10 rotary compressor makers (Unit: 10k) Maker 2016 年 Growth (H1) (H1) 2015 Growth 2014 Growth 2013 Growth 2012 GMCC % % % % 2593 LANDA % % % % 2381 HIGHLY % % % % 1540 RECHI % % % % 1094 PANASONIC % % % % 1089 LG % % % % 697 MITSUBISHI % % % % 530 SAMSUNG % % % % 491 QINGAN % % % % 600 SANYO % % % % 366 OTHERS % % % % 354 TOTAL % % % % Reference : IOL 20

21 Competitive advantage-marketing Owns complete global marketing channels service 28 countries,148 Clients 21

22 compressor BLDC motor Competitive advantage - production Jiujiang factory( DynaRechi) Preliminary capacity Final capacity Preliminary capacity Final capacity Excellent Manufacturing technology and efficiency More cost effective High product performance -RECHI products was deeply trusted by DAIKIN, MIELE and so on. 2 million 6 million 1.5 million 21 million Qingdao Qingdao factory compressor pump motor 9 million 6 million 6 million Huizhou factory ( TCL Rechi) compressor pump motor 6 million 6 million 3.6 million Humen factory motor 5 million Jiujiang Huizhou Humen Taoyuan Pingtung Kuanyin factory pump BLDC motor 3 million Pingtung factory Preliminary capacity Final capacity 1.5 million 3 million 22

23 Competitive advantage - products High energy-efficiency Energy Efficiency Standards A/C and Dehumidifier Energy Star in USA TAIWAN CSPF and CHINA class 1 A /C Five Star Standards in INDIA Pump dryer in EUROPE A % Less noise Flow induced noise analysis and design Structure modal analysis and design Acoustic analysis and design Optimal Muffler design A/C 3.5kW application 62% Weight Split A/C, VRF Dish Washer Heat Pump dryer 50/60 Hz Inverter 15~120 r.p.s. high frequence Smaller size Unitary A/C Roof-Top A/C Application Heat Pump Water Heater Portable A/C Tumbling-box Washing Machine Dehumidifier 23

24 Competitive advantage R&D capability Professional R&D Team: average more than 7years of experience(master and PHD 33%) High precision test device and laboratory:calorimeter26 sets Vibration & noise test chamber 11 sets Reliability test lab 18 sets Locked-rotor test lab 14 sets. Industry-university cooperative:itri NCSIST NIRDC NCTU NCU NCKU NIIC NPUST and so on. Year R&D Engineer % % % % % % % % % (Unit: NT$k) R&D Expense R&D vs. Revenue 500, , , , , % 350, , , % 250, , % 150, % 1.09% 1.31% 100, % 0.93% 50,000 0 '08 '09 '10 '11 '12 '13 '14 ' % 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 24

25 Future Prospects 25

26 Development strategy Pursue Create Technology Innovation Market Demand Value Innovation Strategy New Energy Saving market opportunity New Energy Saving products 26

27 Mid-term and long-term plan - sales 2,500 Compressor Target:Accumulative (Unit: 10k) (Unit: 10k) Sales Quantity reached 200 million sets. BLDC Motor 2,000 1,500 1, '12 '13 '14 '15 '16(F) '17(F) '18(F) '19(F) '20(F) 27

28 Mid-term and long-term plan - sales Other business 2020 target revenue 7.5% Develops new markets for compressor motor Builds leader brand in Taiwan market Horizontal alliances Compressor motor business Heat Pump Water Heater business Develops oversea market Builds module products channels -Compressor products -BLDC motor products Module business Precision machining business Develops Automobile parts precision machining Develops innovation precision machining products 28

29 Mid-term and long-term plan - production capacity Raise production capacity quickly in Jiujiang factory Become Intelligence factory Builds module products lines in KR The key area in the future - INDEA Compressor BLDC Motor (Unit: 10k) (Unit: 10k) 29

30 Mid-Term and Long-Term plan - product development Develops VRF compressor Develops compressor for 3rd generation of refrigerant Develops mini compressor Develops BLDC motor (for A/C) series Develops BLDC motor (for non A/C) Develops Subversive innovation end products and module products 30

31 Upgrades RECHI management systems Raise company's competitiveness Organization improvement process and system improvement Intelligence factory 31

32 Thank you Create unlimited possibilities for the Energy Saving Industry. Become the top provider of proactive Energy Saving Product.