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September 2019
Cal-Comp Technology (Philippines), Inc. (“CCPH”)
Company Presentation
Cal- Comp Technology (Philippines), Inc. (CCPH) Company Presentation - - PowerPoint PPT Presentation
Cal- Comp Technology (Philippines), Inc. (CCPH) Company Presentation September 2019 Page 0 Disclaimer This presentation has been prepared by Cal-Comp Technology (Philippines), Inc. (the CCPH) solely for use at the presentation
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September 2019
Company Presentation
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Disclaimer
This presentation has been prepared by Cal-Comp Technology (Philippines), Inc. (the “CCPH”) solely for use at the presentation regarding CCPH and its subsidiary, Kinpo Electronics (Philippines), Inc. (“KPPH”) on a consolidated basis (collectively, the “Company”). The information contained in this presentation has been taken from sources deemed reliable by the Group and the Company. However, no representation or warranty (whether express or implied) is made as to the fairness, accuracy, completeness or correctness of, and no reliance should be placed on, such information or opinions contained herein. None of the Company, any member of the Group, any of their advisors nor any of their respective affiliates or any of their directors, officers, employees, advisers or representatives shall have any liability whatsoever (for negligence or misrepresentation or in tort or under contract or otherwise) for any loss howsoever arising from any use of information presented at this presentation or otherwise arising in connection with this presentation. This presentation may contain statements that reflect the current beliefs and expectations of the Group and the Company about the future as of the respective dates
statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the
place undue reliance on forward-looking statements, which speak only as of the date of this presentation. The Company and its advisors have no obligation and do not undertake to revise forward-looking statements contained in this presentation to reflect future events or circumstances. By accepting this presentation, the recipient acknowledges and agrees that (1) it will hold in confidence the information contained herein; (2) it will not distribute or reproduce this presentation, in whole or in part; and (3) the recipient is (a) located outside the United States, (b) is accustomed to receiving the type of information contained in this presentation and (c) is a person into whose possession this presentation may be lawfully delivered in accordance with the laws of the jurisdiction in which it is located. The information contained in this presentation is not to be taken as any recommendation made by the Group or the Company or any of their advisors or any other person to enter into any agreement with regard to any investment. This presentation and any accompanying slides or other materials are strictly confidential and are not for release, distribution or publication, whether directly or indirectly, and whether in whole or in part, into or in the United States, Australia, Canada, or any other jurisdiction in which such release, distribution or publication would be unlawful. This presentation is not an offer for sale of any equity shares or any other security of the Company or any other member of the Group. This document does not constitute a prospectus, offering circular, or offering document or form a part of any offer, invitation or solicitation to purchase or subscribe for securities in any
securities laws of any state of the United States. Any securities mentioned herein or at the investor meetings may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act. No public offering of any securities is being made in the United States, or in any other jurisdiction where such an offering is restricted or prohibited. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.
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Table of Contents
Section
Appendix
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Kinpo Group of Companies
Established in 1973, Kinpo Group is a Leading Global Technology ODM Company
Note: 1) As of FY2018
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Kinpo Group of Companies (Cont’d)
Kinpo
Consumer Electronics / PC Peripheral
Compal
Notebook, PC, TV and Mobile Precision Plastic
Cal-Comp Precision AcBEL Cal-Comp Biotech
Power Supply Plant Factory 3D Printing
XYZ Printing CastleNet CCBS Cal-Comp Big Data Cal-Comp (Thailand)
EMS Semiconductor Packaging Big Data Cable Modem
New Era AI Robotic
AI Robot
Founder/Chairman: Rock Hsu
Semiconductor Design
QBit Arcadyan
WiFi
Allied
Bare PCB Manufacturing
Compal Broadband Networks
Networking, Home Security
New Kinpo Group (“NKG”)
CEO: Simon Shen
Compal Group
CEO: Martin Wong Cal-Comp Automation and Industrial 4.0 Service
Automation and Industrial 4.0 Service
Cal-Comp Yue Yang
EMS
CCPH
EMS/ODM for Consumer Appliances & Electronics
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Overview of NKG’s Key Major Product Lines
Calculators HDD PCBA External HDD/NAS Set-Top- Boxes Printers SSD 3D Printer Gateway Semiconductor Package Smart Home Appliance
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Overview of NKG’s Emerging Technologies/New Products 3D Printer Robot
Semiconductor
HiMirror Beauty Product
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Philippines Thailand Malaysia
NKG Group have factories in Thailand, Philippines and Malaysia, especially long history in Thailand for 28 years and Philippines for 20 years.
NKG is the Largest Contract Manufacturer in Southeast Asia
Thailand Philippines Malaysia
Land Area (m2) 444,736 288,947 12,667 Floor Area (m2) 335,115 213,925 13,829 Employees 24,783 15,725 631
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Why the Philippines?
Thailand Philippines Malaysia China Sufficient supply of workforce Highly educated & skilled workers Government support (PEZA) Flourishing civil construction & stable infrastructures Tax benefits Shielded from impact of international trade conflicts
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Why CCPH?
CCPH offers its customers lower costs, faster delivery times, design capabilities and world-class product quality
Global Manufacturing Presence End to End Service Enhancing Vertical Integration Strong Automation Engineering Global On- Site Support Long Term Partnership with Customers Real Time Quality Management System
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CCPH At a Glance
technology conglomerate based in Taiwan with listed subsidiaries in Taiwan and Thailand
revenues of US$6.7Billion in 2018
pachinko display, and solar junction boxes Product Segment Description FY2018 Sale of Goods Contribution Products Key Customers Calculators CCPH manufactures different types of calculators for the world’s best-known calculator brands ~27.6%
(1)
(1) (1)
Other Consumer Electronics CCPH provides final assembly services and manufacturing services for a range
(including products under its own brand HiMirrorTM) ~65.1%
appliances
(1)
(2)
Storage Products CCPH produces various types of HDD PCBA and external HDD products ~7.3%
(HDDs) including PCBA and external HDDs
Leading UK-based technology company
7% 93% FY2018 CCPH Sale of Goods Breakdown US$ 413M Storage Products Consumer Products
Note: 1) Through Kinpo Electronics Inc., a related party 2) Through Cal-Comp Big Data, a related party
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CCPH’s Ownership Structure
Kinpo International (Singapore) Pte. Ltd.
(Wholly owned by Kinpo Electronics, Inc.)
Kinpo Electronics (Philippines), Inc.
(Manufactures Calculators and Smart Home Appliances)
Cal-Comp Technology (Philippines), Inc.
(Manufactures HDDs and PCBAs)
Cal-Comp Electronics (Thailand) Public Company Limited
80.81% 100% 19.19%
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9.1% share
Industry Size
CCPH Primarily Operates in Fast-Growing Regions
The rapid rise in the demand for consumer and smart electronic devices across the globe is driving the EMS market growth. ASEAN is expected to continue to outgrow the broader industry due to lower labor costs and improving talent in the region. NKG is committed to expanding its ASEAN manufacturing base with increasing operations in the Philippines (CCPH) in particular , due to the country’s deepening talent pool and good labor relations.
9.7% share 10.7% share Country / Region 2014 – 2018 CAGR 2018 – 2025 CAGR USA 3.4% 3.8% Europe 3.3% 3.5% China 5.4% 6.9% Japan 3.0% 4.2% Taiwan 4.8% 3.4% Southeast Asia 6.5% 6.6% ROW 5.0% 3.9% Global Average 4.7% 5.1% Source: QY Research 6.4 7.3 9.4 5.2 5.9 7.5 12.3 15.2 24.4 2.1 2.3 3.1 6.0 7.3 9.2 3.5 4.5 7.1 3.2 3.9 5.1 38.7 46.4 65.7 2014 2018 2025E
Revenue Comparison by Region for 2014, 2018, 2025E (USDbn)
USA Europe China Japan Taiwan Southeast Asia ROW Total
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Industry Size
The Company’s Products are Primarily Focused on the Fastest-Growing Segment
The Consumer segment is projected to have the fastest rate of growth. The Company is mainly involved in the manufacture
consumer electronics.
14.3 14.4 13.1 12.4 16.0 25.8 5.7 7.8 13.5 3.7 4.8 8.0 2.6 3.3 5.3 38.7 46.4 65.7 2014 2018 2025E
Revenue Comparison by Application for 2014, 2018, 2025E (USDbn)
Computer Communications Consumer Industrial Others 14.7% share 16.8% share 20.6% share End User / Application 2014 – 2018 CAGR 2018 – 2025 CAGR Computer 0.2%
Communications 6.6% 7.1% Consumer 8.2% 8.2% Industrial 6.9% 7.4% Others 6.4% 6.9% Global Average 4.7% 5.1% Source: QY Research
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EMS Market Players
NKG is a leading player regionally and globally
Total EMS revenue of USD46.4bn in 2018 is shared largely by fifteen major players. Globally, New Kinpo Group is the second largest EMS company, with 14.5% market share according to revenue in 2018. NKG is also a leading player in Southeast Asia in 2018, holding an equivalent to 21.9%
share according to revenue.
New Kinpo Group 14.5% 21.6% 10.4% 5.6% 4.8% 4.7% 4.4% 4.1% 3.7% 3.3% 2.8% 2.5% 1.9% 1.8% 1.3% Others 12.5%
Share of Players in Global EMS Revenue in 2018
Source: QY Research New Kinpo Group 21.9% 18.4% 5.4% 3.1% 4.1% 5.4% 3.7% 4.3% 4.0% 2.7% 2.4% 2.2% 1.2% 1.0% 1.1% Others 19.0%
Share of Players in Southeast Asian EMS Revenue in 2018
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Strong Parent Support
As a member of NKG, CCPH benefits from NKG’s:
Global Design, Research and Development Capabilities Vertically Integrated Supply Chain Long Global Customer and Supplier Relationships Stringent Quality Standards Strong Financial Resources Dynamic Management Team with Long Global Experience
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Fast Scalability
251 4,791 9,167 38,399 42,587 47,027 50,339 2012 2013 2014 2015 2016 2017 2018
Total Units Produced (000's of units)
95 173 1,632 3,959 3,169 6,813 7,390
2012 2013 2014 2015 2016 2017 2018
Total Personnel(1)
Note: 1) Includes both regular employees and seasonal workers sourced through third party manpower agencies
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Smart Automation
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Real-Time Quality Management
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Globally Certified Standards
Safety Electromagnetic Capability Corporate Social Responsibility Quality
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Strong Board and Management Team
Name Position Background
Simon Shen Chairman, President & CEO
from a traditional EMS company to a vertically integrated company with enhanced supply chain and R&D capabilities Tony Chou Director & General Manager
2006 with over 30 years of Manufacturing experience Hugh Lo Director & Investor Relations Officer
Kirby Wong Director
background and experience on program management Naipuu You Director
Derek Khoo Director
establishing and developing new businesses with key international customers
Over 170 years of combined experience in Global Manufacturing :
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Strong Board and Management Team (Cont’d)
Name Position Background
Gregory L. Domingo Independent Director
currently a Senior Advisor to SMIC and a board member of BDO Private Bank Cirilo P. Noel Independent Director
Medical Center Emmanuel
Independent Director
Marlo P. Arcinas Corporate Secretary
Power Corporation & Meralco Industrial Engineering Services among many others Frank Yu Compliance Officer
Compliance Martin Lee Treasurer
Accounting and Finance experience
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Continuous Improvements & Innovation in our Manufacturing Capabilities
expanding Philippine operations and capabilities
times, through NKG’s Vendor Partnership Program
tailored to the clients’ products
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Develop Local Engineering Talent
engineers in the Philippines
to increase Research and Development capabilities within the country
fully train a new engineer
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Develop Our Own Brands and the Philippine Domestic Market For New Consumer-Focused Products & Emerging Technologies
market these in the Philippines
feasibility of manufacturing and introducing certain products, such as smart beauty products, and robotics, into the Philippine market
Beauty Products Robotics
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Historical Financial Performance
demand for smart home appliances and shift in manufacturing from China to ASEAN
representative of full year performance due to typically stronger seasonal demand in the 2H of the year
123.6 210.6 415.2 191.8 278.8 0.0 100.0 200.0 300.0 400.0 500.0 2016 2017 2018 6M 2018 6M 2019 In US$ Millions
Total Revenue
YoY Growth = 45.3% CAGR = 83.3%
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Historical Financial Performance (Cont’d)
due to manufacturing process improvements
due to better gross margins and continued cost-control initiatives
net income grew strongly in the last 3 years and in the interim period of 2019
increases in production efficiency and utilization rate
increase as fast as revenue growth
7.3% 8.2% 11.1% 12.6% 13.3% 2.2% 4.7% 8.1% 10.1% 11.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2016 2017 2018 6M 2018 6M 2019
Gross and Operating Margins
Gross Margin Operating Margin 0.5 7.2 31.4 18.7 28.5 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2016 2017 2018 6M 2018 6M 2019 In US$ Millions
Net Income
CAGR = 688.7%
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Robust Balance Sheet
balance sheet by actively managing its liquidity and equity position
a total of US$94 million in bank debt, with a healthy Debt to Equity ratio of 1.24x
166.0 257.8 343.2 406.6 41.6 126.3 180.3 224.8 0.0 100.0 200.0 300.0 400.0 500.0 2016 2017 2018 6M 2019 In US$ Million
Assets and Liabilities
Assets Liabilities 1.29 1.06 1.12 1.15 0.33 0.96 1.11 1.24 0.1 0.4 0.7 1.0 1.3 1.6 2016 2017 2018 6M 2019 (x)
Financial Ratios
Current Ratio D/E Ratio
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Corporate Structure
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Corporate Structure
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Supplementary General Information
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CCPH Philippine Footprint
Business
Products
Clients
Locations
Total Leased Land Space
Total Manufacturing Space
Total Workforce
Notes: 1. Through Kinpo Electronics Inc., a related party 2. Through Cal-Comp Big Data, a related party 3. Includes regular and seasonal employees sourced through third party manpower agencies
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Why NKG?
automation capabilities
requirements
System Standards
Cost Effective Assembly (DFC) to ensure product design is optimized for assembly, service, quality and process
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Product-Specific Initiatives
stylish designs
win orders for new product lines
continue to develop and market new products in the category