WW Holding (8442 TT) Investor Presentation December 2018 - - PowerPoint PPT Presentation

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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


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SLIDE 1

WW Holding (8442 TT)

Investor Presentation December 2018

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  • 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.

2

Disclaimer

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SLIDE 3

Who we are and why invest in us?

3

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

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SLIDE 4

Company Background

4

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SLIDE 5

Company Milestones

5

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

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SLIDE 6

Our Products

6

Non-leather boutique bags Luggage & suitcases Leather boutique bags Sports protectives Sports accessories Sports gloves

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SLIDE 7

Our Production Sites & Company Structure

7

  • 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

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SLIDE 8

Our Primary Customers

8

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SLIDE 9

Our Competitive Strengths

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Strong R&D Capability Broadest SKUs in Our Categories Diversified Customer Base with Prime Vendor Position Regional Deployment of Production Bases

Our Core Strengths

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SLIDE 10

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).

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SLIDE 11

Our Competitive Strengths

11

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%

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SLIDE 12

Our Competitive Strengths

12

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

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SLIDE 13

Industry Trends & Outlook

13

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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

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SLIDE 15

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.

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SLIDE 16
  • 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

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SLIDE 17

Our Goals & Strategies

17

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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

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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

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SLIDE 20
  • 1. Strengthening the Core

20

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

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SLIDE 21
  • 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

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SLIDE 22
  • 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

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SLIDE 23
  • 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

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SLIDE 24

Financial Performance

24

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SLIDE 25

3Q18 Results Summary

25

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%

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SLIDE 26

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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SLIDE 27

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%

27

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SLIDE 28

28

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

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SLIDE 29
  • 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

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SLIDE 30

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

30

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SLIDE 31

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.

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SLIDE 32

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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SLIDE 33

34

WW Holding (8442 TT)

Thank You ! www.ww-holding.com.tw For more information, please visit our website