Chang Type — Investor Presentation 2021

Nov 19, 2021

          Code：1541

Nov 19th, 2021

1

Agenda

Company Overview
Company Profile: important stages
Product: Woodworking Machines (Power Tools & Pneumatic Tools)
Factory: Vertical Integration

Industry & Market
Sales by Area
Industrial Business Model

Financial Outlook
Condensed Financial Statement (2015~2021.1~9)
Financial Trend

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Company Overview

Chang Type Industrial Corporation
Delta Power Equipment Corporation
TWD
TWD
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Company Profile: important stage 1

OEM/ODM Stage

-- Established in 1989
-- Capital：20 Million (TWD)

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Company Profile: important stage 2

Public Listed Stage

-- Public Listed in 2003
-- Issued 500 Million CB in Dec 2003 to build vertical integrated
plants.
-- Vertical integrated plants launched in Dec 2005.

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Company Profile: important stage 3

Own Brand Stage

-- Acquire historic American power tool brand “ DELTA” in 2011
(“ DELTA” brand established in 1919)
-- First time to list “DELTA” products in Lowe’s retail store in 2013.

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Product: Woodworking Machines ?(Power Tools & Pneumatic Tools)

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Factory: Vertical Integration

Vertically Integrated Power Tool Plant

CT’s Plant I

CT’s Plant II
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Notes:

Die Casting Foundry

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Notes:

Painting Shop

1 Automatic Line with 2 Disks
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Notes:

Plastic Injection

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Notes:

Machining Shop

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Notes:

Assembly Line

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Notes:

Delta Power Equipment Co. Plant

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Notes:

Delta Power Equipment Co. Warehouse

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Notes:

Industry & Market

Sales by Area

TWD: in thousands
| Year Area | 2020 | | 2019 | |
| --- | --- | --- | --- | --- |
| | Sales | % | Sales | % |
| America | 5,096,450 | 96.67 | 4,010,810 | 96.37 |
| Others | 175,495 | 3.33 | 189,251 | 3.63 |
| Total | 5,271,945 | 100.00 | 4,200,061 | 100.00 |
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Industry & Market

Industrial Business Model
| Factory | | OEM/ODM | | | |
| --- | --- | --- | --- | --- | --- |
| | | | | | |
| | | | | | |
| Brand Company | DPEC | SBD | TTI | Bosch | Makita |
| | Delta | Dewalt | Ryobi | Bosch | Makita |
| | | Porter Cable | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Distributor | Traditional ?Stores | Chain store?(M size) | Big Box | | Internet |
| | | Menard | Homedepot | | Amazon |
| | | Other | | | Homedepot |
| | | | Lowe's | | Lowe's |
| | | | | | |
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Financial Outlook:?2015~2021 Condensed Financial Statement

Condensed Financial Statement
TWD: in thousands	2021.1~9	2020	2019	2018	2017	2016	2015
Sales Revenue	4,463,953	5,271,945	4,200,061	3,590,792	3,653,294	3,528,444	2,887,841
Gross Profit	569,836	1,066,775	770,491	479,278	592,691	765,090	614,414
Gross Margin	12.8%	20.2%	18.3%	13.3%	16.2%	21.7%	21.3%
Operating Cost	280,268	381,368	354,865	431,585	325,665	333,936	316,773
Operating Profit	289,568	685,407	415,626	47,693	267,026	431,154	297,641
Operating Margin	6.5%	13.0%	9.9%	1.3%	7.3%	12.2%	10.3%
Net Profit	206,499	456,555	251,476	78,557	134,993	344,509	283,152
EPS	2.62	5.79	3.19	1.00	1.71	4.37	3.59
Cash Dividend		3.00	0.00	1.00	1.50	3.30	3.21
Capital	788,000	788,000	788,000	788,000	788,000	788,000	788,000
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Financial Outlook: Financial Trend

Chart

Category	Sales Revenue	Gross Profit	Operating Profit	Net Profit
110 (2021).1~9	4463953.0	569836.0	289568.0	206499.0
109(2020)	5271945.0	1066775.0	685407.0	456555.0
108(2019)	4200061.0	770491.0	415626.0	251476.0
107 (2018)	3590792.0	479278.0	47693.0	78557.0
106 (2017)	3653294.0	592691.0	267026.0	134993.0
105 (2016)	3528444.0	765090.0	431154.0	344509.0
104 (2015)	2887841.0	614414.0	297641.0	283152.0

Financial Outlook: Financial Trend

Chart

Category	Gross Margin	Operating Margin
110 (2021).1~9	0.128	0.065
109(2020)	0.202	0.13
108(2019)	0.183	0.099
107 (2018)	0.1334	0.0133
106 (2017)	0.1622	0.0731
105 (2016)	0.2168	0.1222
104 (2015)	0.2128	0.1031

Q & A

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