WW Holding (8442 TT) Investor Presentation December 2018 - - PowerPoint PPT Presentation
WW Holding (8442 TT) Investor Presentation December 2018 - - PowerPoint PPT Presentation
WW Holding (8442 TT) Investor Presentation December 2018 Disclaimer The information contained in this confidential document ("Presentation") has been prepared by WW Holding (the "Company"). It has not been fully
- The information contained in this confidential document ("Presentation") has been prepared by WW Holding (the "Company"). It has not been fully
verified and is subject to material updating, revision and further amendment.
- While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents,
employees or advisers gives, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision or supplement thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers takes any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness or injury of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation or the information.
- Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed
with any transaction and the right is reserved by the Company to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the
- Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any
additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.
- This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents,
employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.
- This Presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than
statements of historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking
- statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued
availability of capital and financing, general economic, market or business conditions and other unforeseen events. Prospective Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.
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Disclaimer
Who we are and why invest in us?
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◼
We are a global leading sports protectives & accessories and handbags & luggage producer focusing on ODM for global sports and fashion & lifestyle brands.
◼
Our key strengths lie in our strong R&D capability, particularly in fulfilling and customizing according to our customers’ needs and expectations and overcoming barriers to commercialization and mass production.
◼
As a result, we are able to develop a diversified customer base but at the same time, achieves a prime vendor position. Based on our estimates, we supplied up to 70% and 80% of Nike’s sports protective products and gloves, respectively. We also supply up to 40% of TUMI’s bags and luggage products.
◼
We see huge growth opportunities globally in sports accessories and fashion & lifestyle products, thanks to growing popularity of sports/outdoor activities and affordable luxury.
◼
We will continue to seek growth by moving/expanding
- ur production facilities to Southeast Asia and broaden
- ur product offerings to better meet the needs of our
existing and potential new customers.
◼
Our topline and bottomline have been negatively impacted by our production migration in the past two years, however, as we are completing our migration, we have already started to deliver strong topline and margin improvement.
WW Holding consolidated sales breakdown
WW Holding Model
Sports Protective Gear & Accessories Purse Handbags & Luggage
31% 27% 17% 25% 30% 30% 20% 22% 19% 14% 11% 8% 0% 1% 16% 9% 10% 10% 2016 2017 1H18 Non-leather Bags Leather Bags Sports Protectives Sports Gloves Luggage & Suitcases Sports Accessories
Company Background
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Company Milestones
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Foundation & Structuring 1998-2006 Corporate Expansion 2006-2017 Rationalization of Production 2015 - 2018
◼
1998 - Formerly Honour Rich Limited in Dongguan, Wilson Group Holdings Limited has its
- rigin in Dongguan of
Guangdong Province, China, and has been engaged in the production of high-end boutique bags since 1998.
◼
2003 – Nike onboarded
◼
2004 - Established Dongguan Wellpower Sporting Goods, mainly for the production of sports protective gear and accessories.
◼
2006 - Established a new production site in Huaian, Jiangsu Province.
◼
2006 – Kipling, Tumi, Decathlon on boarded
◼
2008-09 - Under Armour and JR286 onboarded
◼
2011-13 – Nike: Best Stable Supplier Award, Best Innovative Product Award, Best Supplier Award.
◼
2013-15 – JR286: Best Product Quality Award, Best Supplier Award.
◼
2014 – Longchamp
- nboarded
◼
2014 – Renamed the company to WW Holding Inc.
◼
2014 – Merged with Wilson Group Holdings Limited.
◼
2016 – Armani and Hugo Boss onboarded.
◼
2016 – IPO in Taiwan with ticker 8442 TT.
◼
2016 - Established Wilson Leather (Thailand) Co.
◼
2016 - Established Wilson Leather (Cambodia) Co.
◼
2016-17 – Gradually expanded more of our production from China to Southeast Asia.
◼
2017 - Established Global Worth Investment Holding and Global Vibrant Trading Limited as the holding arm for our luggage business.
◼
2017 – Acquired TWT Manufacturing Co., Ltd in Thailand – a major supplier to Tumi bags and luggage.
Consolidate Leadership Position 2018 - Beyond
Consolidate leadership position
Our Products
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Non-leather boutique bags Luggage & suitcases Leather boutique bags Sports protectives Sports accessories Sports gloves
Our Production Sites & Company Structure
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- Sports goods production
- Production line: 18
- Workers: 689
- Handbags and backpacks
- Production line: 22
- Workers: 1,188
- R&D center
- Boutique leather bags and
Sports goods production
- Production line: 58
- Workers: 4,027
- Boutique bags production
- Production line: 19
- Workers: 1,098
- Luggage production
- Production line: 13
- Workers: 1,300
Xingguo, Jiangxi Huian, Jiangsu Taiwan Dongguan, Guangdong Thailand Phnom Penh, Cambodia
- Headquarter
- Financial and R&D center
8,302 Employees 130 Production lines 2 Business segments 1 Common goal
*As of Oct 2018 WW Holding Inc.
GLOBAL WORTH INVESTMENT HOLDING LTD. TWT Manufacturing Co. Ltd. GLOBAL VIBRANT TRADING LIMITED WILSON GROUP HOLDINGS LIMITED(SAMOA) WILSON GROUP HOLDINGS LIMITED Hong Sheng Leather (Dongguan) Guangdong AnGaea Wilson Leather (Cambodia) WILSON HOLDINGS (HK) LIMITED Wilson (Jiang Su) NICE-BAG (Huai’an) NICE-BAG (Jiang Su) WELLPOWER COMMERCE HOLDING CO., LTD. Wellpower (Dongguan) Wellpower (jiangxi)
*All companies are 100% owned
Our Primary Customers
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Our Competitive Strengths
9
Strong R&D Capability Broadest SKUs in Our Categories Diversified Customer Base with Prime Vendor Position Regional Deployment of Production Bases
Our Core Strengths
Our Competitive Strengths
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Strong emphasis on research and design
◼
Design is the heart and soul of our business
◼
We have a team of 308 dedicated designers and R&D personnel who develop the most functional and fashionable products for our customers.
◼
In many cases, we generate product design ideas for our customers.
◼
For example, Time Magazine ranked NIKE’s Muslim sports Hijab as one of the top25 “Best Inventions” of 2017, which was designed and manufactured by us. A one-stop shopping for our customers
◼
We cover up to 90% of all kinds of bags and luggage SKUs for our customers to choose from. The same goes to our sports protectives and accessories business. In total, we cover up to 22k SKUs.
◼
We have a firewall between showrooms for each customer and will never sell any of our customers’ product designs to another.
◼
The established trust in our company allows us to supply to major global brand customers (despite themselves being competitors).
Our Competitive Strengths
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Diversified customer base with prime vendor position
◼
Besides strong R&D capability, our ability to fulfill and customize according to our customers’ needs and expectations along with overcoming barriers to commercialization and mass production have won us prime vendor position in many of our customers’ supply chain.
◼
Based on our estimates, we supplied up to 70% and 80% of Nike’s sports protective products and gloves, respectively. We also supply up to 40% of TUMI’s bags and luggage products. Regional deployment of production bases
◼
Production bases in multiple regions in China and Southeast Asia allow us to support different customers to supply into respective domestic markets faster than peers while
- btaining a higher margin.
◼
This also allows us to diversify and mitigate our political and financial risks in the case of government/ trade policy changes or currency fluctuations.
Customer Product
- Est. Mkt
Share TUMI Business Bags 20% Luggage 50% Women Bags 70% Nike Sports Gloves 80% Sports Protectives 70% Decathlon Shinguards 60% Skate Protectives 70% Longchamp Nylon Bags 40% Kipling Nylon Bags 30%
Our Competitive Strengths
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Handles & Grips Wheels Zipper Body & Parts
Strength Safety Durability & Resilience Endurance
- 1. Product Safety
- 2. Colorfastness to Crocking
- 3. Colorfastness to Water/Water Repellency
- 4. Colorfastness to Perspiration
- 5. Colorfastness to UV Fading
- 6. Oil Resistance
- 7. Clean Ability
- 8. Finish Adhesion
- 9. Abrasion Resistance
- 10. Bally Flex
- 11. Stiffness
- 12. Tensile Strength
- 13. Tear Strength
- 14. Seam Strength
- 15. Break/Pipiness
TUMI vs. Other Brands
Production Steps Number of Parts Accuracy Tolerance Length of training for skilled labor 150 1 millimeter 18-24 months 40-60 120 50 5 millimeters 3 months vs. vs. vs. vs.
- 16. Shrinkage
- 17. Dimensional Stability
- 18. Salt Spray
- 19. Mini-Tumble
- 20. Operational Forces
- 21. Zipper Crosswise Strength
- 22. Zipper Puller Tensile Strength
- 23. Environmental Cycle
- 24. Handle Jerk/Strap Jerk
- 25. Drop Test
- 26. Tumble Test
- 27. Telescoping Handel Free Fall/Impact
- 28. Telescoping Handle Cycling
- 29. Mileage Cycle
- 30. Customized tests as required
Environmental Cycle Test Machine Drop and Tumble Test Machine Salt Spry Test Machine
For TUMI, products are put through 30 unique tests
Why we are chosen – TUMI as an example
Industry Trends & Outlook
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0.6 0.7 0.8 0.9 1.0 2016 2017 2018E 2019E 2020E 2021E 2022E
Global Sports Gloves Market
4 6 8 10 2016 2017 2018E 2019E 2020E 2021E 2022E
Global Sports Protective Equipment Market
Factor & Equilibrium Allied Market Research KBV Research Transparency Market Research Average
Sports Protectives Industry
14
◼
According to various research institutes, the global sports protective equipment market is expected to grow at a CAGR of 3.5% - 4.7% from 2016-2026.
◼
The growth is mainly driven by an increase in sports participation, rising popularity of sports leagues and the number of sports events, combined with a growing consumer awareness of safety during sports activities.
◼
Based on our estimates, we have roughly 10% market share in the global sports protective equipment market and 20% market share in the global sports gloves market (based on FOB prices).
(USD/Bn) (USD/Bn) Source: Index Markets Research
0% 4% 8% 12% 20 40 60 80 100 2005 2009 2013 2017 Sports events market revenue CAGR CAGR(%) 2005- 2009 2009- 2013 2013- 2017 Football 8% 9% 5% U.S. sports 5% 5% 4% Tennis 2% 5% 3% Golf 3% 2% 4% Other 11% 9% 9% Total 6% 7% 5%
*US Sports include NFL, MLB, NBA, NHL, NASCAR, NCAA
Global Sports Events Revenue
(USD/Bn)
Source: A.T. Kearney Analysis
340 380 420 460 2016 2017 2018E 2019E 2020E 2021E
Global Luxury Goods
40 50 60 70 80 2017 2018E 2019E 2020E 2021E 2022E 2023E
Global Luxury Bag Market
KD Market Insights QY Research 10 14 18 22 26 2016 2017 2018E 2019E 2020E 2021E 2022E 2023E
Global Travel Bags Market
Global Luxury Bags and Travel Bags Industry
15 (USD/Bn) Source: KD Market Insights, QYResearch (USD/Bn) Source: BBG (USD/Bn) Source: Global Opportunity Analysis and Industry Forecast
◼
According to Bloomberg research, the global luxury market is gradually rebuilding, and is expected to grow at 3% CAGR from 2016-2021.
◼
China’s economic recovery, along with loosening of anti-extravagance measures, along with product designs and innovations, are rebuilding demand.
◼
Beauty products, small leather goods and accessories, and travel bags and luggage are among the fastest-growing categories at the more- accessible price points.
- 10%
- 5%
0% 5% 10% 15% 80 90 100 110 120 130 140 2012 2013 2014 2015 2016 2017
ASEAN FDI inflow outgrew China in 2016-17
China Southeast Asia China Growth Rate Southeast Asia Growth Rate
Non-tech manufacturing gradually moving away from China
16 Source: National Bureau of Statistics of China (USD/Bn) Source: World Investment Report 30,000 40,000 50,000 60,000 70,000 80,000 2010 2011 2012 2013 2014 2015 2016 2017
China workers base salary
(CNY/dollar) 0.0 0.2 0.4 0.6 0.8 1.0 1.2
1990 1995 2000 2005 2010 2015 2020E 2025E 2030E 2035E 2040E 2045E 2050E 2055E 2060E 2065E 2070E 2075E 2080E 2085E 2090E 2095E 2100E
0-14 15-64 65 and above (Billion) Source: United Nations & National Bureau of Statistics of China
Chinese working age population to plateau from 2015
100 200 300 400 Myanmar Cambodia Vietnam Malaysia Thailand Philippines Indonesia China
Monthly minimum wage level in Asia
(USD) Source: Bank of Tokyo Mitsubishi UFJ
Our Goals & Strategies
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Our Group Vision and Goals
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Weaving Sports & Fashion in Innovation World Class Team and Infrastructure to Build Scale
◼
Optimize cost structure
◼
Sufficient capacities and flexibilities
◼
Strengthen resilience to down cycles
◼
New brands of customers
◼
An expanding products portfolio
◼
Strategic M&As
◼
Re-deploy capital towards higher margin business to increase return
Operational Excellence Accelerating Growth To become the global no. 1 supplier for premium sports accessories and fashion & lifestyle products Increase Shareholder Value
Our Growth Strategies
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Objectives Levers
1 2 3 4
Strengthening the core New brands
- f customers
Expand along value chain Mergers & acquisitions
◼
Completes production migration to Southeast Asia
◼
Increase automation level
◼
Increase wallet share in existing customers
◼
New customers acquisitions through product capacity expansion
◼
Expand our sports
- fferings to medical-
and industrial-grade protectives
◼
Expand our offerings in bags and accessories categories
◼
Explore acquisitions that enhance vertical integration
◼
Explore acquisitions
- f original product
manufacturing companies
◼
Continue to expand in product
- fferings
◼
Accelerate growth and return
◼
Organic growth through customer acquisition
- 1. Strengthening the Core
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We are better positioned to serve our customers after realignment of our production capabilities
1,218 1,175 1,100 1,150 1,200 1,250 1H17 1H18
Huian plants
1,149 1,273 800 1,000 1,200 1,400 1H17 1H18
Thailand plant
989 1,310
- 400
800 1,200 1,600 1H17 1H18
Cambodia plant
# of plant workers
5,288 4,022
- 1,500
3,000 4,500 6,000 1H17 1H18
Dongguan plants
700 715 500 600 700 800 1H17 1H18
Xingguo plant Auto Cutting Traditional Progress of Auto Cutting for Ankle Sock
◼
Need to move the cutting mold and material after each cutting
◼
Two layers cut at the same time
◼
1 Worker does 1500 pairs/day
◼
Auto adjust material position after each cutting
◼
4 layers cut at the same time
◼
1 Worker does 2000 pairs/day
Progress of Auto Stitching Auto Stitching Traditional
◼
Worker holds the foam and backer and sleeve
◼
Small sleeve opening would impact stitching efficiency
◼
70 seconds needed per piece
◼
Only need to fix the foam backer and sleeve on the machine
◼
35 seconds needed per piece
- 2. Expand the Value Chain
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We firmly believe the key to our success lies in the products that we offer to our customers Marathon Jackets Belts & Leather Accessories Medical Support/Gloves Medical Support Socks Sports, Medical, Industrial Protectives & Fashion, Lifestyle Products Specialty Sports Bags Diaper/Baby Bags Sports Hats & Beanies Industrial/ Safety Vests
- 3. New Brands of Customers
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Our goal is to emerge as a trusted partner to the top global sports and lifestyle brands
Growing new brands
Sports protective s Gloves Accessories Bags Equipment Women Bags Men Bags Luggage, Travels Belts Accessories
Growing wallet share in existing customers
Global brands Boutique brands A balanced portfolio & target markets to ensure the highest profitability Luxury Premium Sports & Designer Fast Fashion Casual & Mass
- 4. Mergers and Acquisitions
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We have a strong M&A track record and we are return-focused
Our three priorities for M&As
- 1. Contributes to
vertical integration
- 2. Must be an
- riginal product
manufacturing company
- 3. Return-focused
Our acquisition of TWT (Thailand) in 4Q17 as an example (a major supplier to TUMI)
0% 2% 4% 6% 8%
- 500
1,000 1,500 2,000 2,500 2016 2017 1H18
TWT's net profit and margin
Net profit (US$ '000) Net margin (RHS) 10 13 2 4 6 8 10 12 14 2017 3Q18
Production lines
1,149 1,273 1,000 1,100 1,200 1,300 2017 3Q18
Factory workers
Financial Performance
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3Q18 Results Summary
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Revenue (NT$m) Operating Profit (NT$m)
1,336 1,569 3Q17 3Q18 +17.4% 35 51 3Q17 3Q18 +46.0% 211 282 3Q17 3Q18
Gross Profit (NT$m)
11 55 3Q17 3Q18
Net Income to Parent (NT$m)
+33.2% +419.8%
3Q18 Income Statement
(NT$million) 3Q18 3Q17 Dif. YoY 2Q18 Dif. QoQ Revenue 1,569 1,336 233 17.4% 1,715 (146) (8.5%) COGS (1,288) (1,125) (163) 14.5% (1,482) 194 (13.1%) Gross Profit 282 211 70 33.2% 233 48 20.6% Operating Expenses (231) (176) (54) 30.6% (201) (29) 14.5% Selling and Marketing (106) (78) (28) 35.9% (85) (21) 25.0% Administrative Expense (100) (80) (20) 24.9% (91) (9) 9.4% Research and development (24) (18) (6) 33.5% (25) 1 (2.7%) Operating Profit 51 35 16 46.0% 32 19 59.1% Non Op. Income/(Loss) 6 (11) 16
- 35
(30) (84.3%) Pretax Income 56 24 32 132.4% 67 (11) (16.0%) Tax Expenses (2) (14) 12 (88.7%) 0.4 (2)
- Minority
- Net Income to Parent
55 11 44 419.8% 68 (13) (18.7%) Basic EPS (NT$) 1.10 0.21 0.89 419.8% 1.35 (0.25) (18.7%) Diluted EPS (NT$) 1.10 0.21 0.89 419.8% 1.35 (0.25) (18.7%) Key Financial Ratios (%) Gross Margin 17.9% 15.8% 2.1% 13.6% 4.3% Operating Expense Ratio 14.7% 13.2% 1.5% 11.7% 3.0% Operating Margin 3.2% 2.6% 0.6% 1.9% 1.4% Pretax Income Margin 3.6% 1.8% 1.8% 3.9% (0.3%) Net Margin 3.5% 0.8% 2.7% 3.9% (0.4%)
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1-3Q18 Income Statement
(NT$million) 9M18 9M17 Dif. YoY Revenue 4,450 3,703 747.1 20.2% COGS (3,852) (3,141) (711) 22.6% Gross Profit 598 562 37 6.5% Operating Expenses (623) (529) (95) 17.9% Selling and Marketing (269) (261) (8) 3.0% Administrative Expense (284) (216) (68) 31.7% Research and development (71) (52) (19) 35.9% Operating Profit (25) 33 (58)
- Non Op. Income/(Loss)
36 (13) 48
- Pretax Income
10 20 (10) (48.6%) Tax Expenses (2) (38) 37 (95.2%) Minority
- Net Income to Parent
8 (18) 27
- Basic EPS (NT$)
0.17 (0.37) 0.54
- Diluted EPS (NT$)
0.17 (0.37) 0.54
- Key Financial Ratios (%)
Gross Margin 13.4% 15.2% (1.7%) Operating Expense Ratio 14.0% 14.3% (0.3%) Operating Margin (0.6%) 0.9% (1.5%) Pretax Income Margin 0.2% 0.5% (0.3%) Net Margin 0.2% (0.5%) 0.7%
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3Q18 Balance Sheet
(NT$million) 3Q18 2Q18 Dif. 2017 Dif. Total Assets 4,273 4,016 257 4,010 263 Cash 420 359 61 572 (152) AR & NR 1,141 1,126 15 889 252 Inventories 886 782 104 737 149 Fixed Assets 1,013 1,013 1,159 (146) Total Liabilities 3,087 2,850 237 2,804 283 AP & NP 584 502 82 457 127 Total Equity 1,186 1,165 21 1,205 (19) Key Financial Ratios A/R Turnover Days 61.5 56.2 5.3 55.7 5.8 Inventory Turnover Days 50.3 46.5 3.8 57.8 (7.5) A/P Turnover Days 33.8 30.3 3.5 34.6 (0.8) Cash Conversion Days 78.0 72.4 5.6 78.9 (0.9) ROE (%) 0.9 (7.8) 8.7 (3.0) 3.9 ROA (%) 0.3 (2.3) 2.6 (1.1) 1.4 Net debt (cash)/Equity (%) 108.6 113.4 (4.8) 69.8 38.8
- 15
- 10
- 5
5 10 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
Operating Margin %
5 10 15 20 25
Gross Margin %
- 40
- 20
20 40 60
Revenue growth (YoY%)
100 200 300 400 500 600 700 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
We are making a strong recovery as we complete our transition
29 Revenues are returning… …and maintain at double digit growth Our margin took a hit but is recovering
Consolidated Monthly Revenue (NT$m)
Our margin took a hit but is recovering
Income Statement
NT$m 2013 2014 2015 2016 2017 9M18 YoY (%) 2014 2015 2016 2017 9M18 Revenue 4,167 4,841 5,211 4,904 4,795 4,450 16.2 7.6 (5.9) (2.2) 20.2 Gross Profit 825 979 1,043 850 731 598 18.7 6.5 (18.5) (14.0) 6.5 Operating Expenses (676) (725) (791) (724) (706) (623) 7.3 9.0 (8.4) (2.5) 17.9 Operating Profit 149 254 252 125 25 (25) 70.0 (0.5) (50.3) n.a. n.a. Non Operating Income/(Loss) (52) 5 65 29 (20) 36 n.a. 1159.1 (56.1) n.a. n.a. Pretax Income 97 259 318 154 4 10 165.9 22.7 (51.5) (97.1) (48.6) Tax Expenses (24) (62) (78) (41) (43) (1.9) 163.7 24.9 (46.7) 4.3 (95.2) Net Income to Parent 18 173 240 113 (39) 8 877.1 38.8 (53.1) n.a. n.a. Basic EPS (NT$) 1.42 4.18 5.46 2.51 (0.78) 0.17 194.4 30.6 (54.0) n.a. n.a. Key Financial Ratios (%) Gross Margin 19.8 20.2 20.0 17.3 15.2 13.4 Operating Expense Ratio 16.2 15.0 15.2 14.8 14.7 14.0 Operating Margin 3.6 5.2 4.8 2.6 0.5 (0.6) Net Margin 0.4 3.6 4.6 2.3 (0.8) 0.2
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Balance Sheet
31
NT$m 2013 2014 2015 2016 2017 9M18 YoY (%) 2014 2015 2016 2017 9M18 Total Assets 2,586 2,922 3,075 3,228 4,010 4,273 13.0 5.2 5.0 24.2 29.8 Cash 156 572 524 682 572 420 266.2 (8.4) 30.1 (16.1) (9.9) AR & NR 608 518 599 595 889 1,141 (14.8) 15.7 (0.7) 49.5 28.7 Inventories 605 605 640 567 737 886 0.0 5.7 (11.4) 29.9 61.1 Fixed Assets 691 666 672 757 1,159 1,013 (3.7) 1.0 12.6 53.1 29.1 Total Liabilities 1,721 1,865 1,838 1,853 2,804 3,087 8.4 (1.4) 0.8 51.4 49.5 AP & NP 395 351 342 324 457 584 (11.3) (2.4) (5.3) 41.1 53.3 Total Equity 866 1,057 1,237 1,375 1,205 1,186 22.1 17.0 11.2 (12.3) (3.3) Key Financial Ratios A/R Turnover Days
- 41.9
38.6 43.8 55.7 61.5 Inventory Turnover Days
- 56.4
53.8 53.6 57.8 50.3 A/P Turnover Days
- 34.8
29.9 29.6 34.6 33.8 Cash Conversion Days
- 63.5
62.4 67.8 78.9 78.0 ROE (%)
- 24.9
20.9 8.6 (3.0) 0.9 ROA (%)
- 6.3
8.0 3.6 (1.1) 0.3 Net debt (cash)/Equity (%)
- 32.3
20.0 17.3 69.8 108.6 Notes: 1. Our net debt to equity ratio grew significantly from 2017 to 1H18 was due to increased borrowings for our capacities build-up and M&A in Southeast Asia. As we are completing our production migration we expect the ratio to lower starting from 3Q18 and gradually normalizing to 2015-2016 level.
Dividend Payout and Capex
32
Notes: 1. WW Holding became listed on TAIEX on Nov 8, 2016. 2. Cash yield is calculated based on WW Holding’s closing share price on Oct 12, 2018. 3. We did not pay a dividend in 2018 due to losses in 2017. However, as we finish our production migration we expect to return to profitability in full-year 2018, hence allowing us to resume our cash dividend payout.
(NT$m) 2014 2015 2016 2017 Net profit 173 240 113
- 39
Dividend Paid 43.9 131.8 110.0
- DPS (NT$)
1.0 2.6 2.2
- Payout ratio (%)
25.4% 54.9% 97.7%
- Dividend yield
1.5% 4.6% 3.8%
- Capex
36 96 241 122 Capex/Sales 0.7% 1.8% 4.9% 2.5%
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