Chang Type — Investor Presentation 2024

Nov 14, 2024

          Code：1541

Nov 22th, 2024

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 (2017~2024.1~9)
Financial Trend

2

Company Overview

Chang Type Industrial Corporation
Delta Power Equipment Corporation
TWD
TWD
3

Company Profile: important stage 1

OEM/ODM Stage

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

4

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.

5

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.

6

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

7

Factory: Vertical Integration

Vertically Integrated Power Tool Plant

CT’s Plant I

CT’s Plant II
8

Notes:

Die Casting Foundry

9

Notes:

Painting Shop

1 Automatic Line with 2 Disks
10

Notes:

Plastic Injection

11

Notes:

Machining Shop

12

Notes:

Assembly Line

13

Notes:

Delta Power Equipment Co. Spartanburg Plant

14

Notes:

Delta Power Equipment Co. Duncan Plant

15

Delta Power Equipment Co. Warehouse

16

Notes:

Industry & Market

Sales by Area

TWD: in thousands
| Year Area | 2023 | | 2022 | |
| --- | --- | --- | --- | --- |
| | Sales | % | Sales | % |
| North America | 3,189,261 | 94.4 | 3,867,775 | 95.33 |
| Others | 188,769 | 5.6 | 189,672 | 4.67 |
| Total | 3,378,030 | 100.00 | 4,057,447 | 100.00 |
17

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 |
| | | | | | |
18

Financial Outlook:?2018~2024 Condensed Financial Statement

Condensed Financial Statement
TWD: in thousands	2024.1~9	2023	2022	2021	2020	2019	2018
Sales Revenue	2,249,489	3,378,030	4,057,447	6,202,947	5,271,945	4,200,061	3,590,792
Gross Profit	350,432	662,828	594,471	781,131	1,066,775	770,491	479,278
Gross Margin	15.6%	19.6%	14.7%	12.6%	20.2%	18.3%	13.3%
Operating Cost	338,561	377,645	423,712	386,195	381,368	354,865	431,585
Operating Profit	11,871	285,183	170,759	394,936	685,407	415,626	47,693
Operating Margin	0.5%	8.4%	4.2%	6.4%	13.0%	9.9%	1.3%
Net Profit	76,574	115,190	272,059	299,261	456,555	251,476	78,557
EPS	0.93	1.46	3.45	3.80	5.79	3.19	1.00
Cash Dividend		0.5	1.0	2.50	3.00	0.00	1.00
Capital	788,000	788,000	788,000	788,000	788,000	788,000	788,000
19

Financial Outlook: Financial Trend

Chart

Category	Sales Revenue	Gross Profit	Operating Profit	Net Profit
113 (2024)Q3	2249489.0	350432.0	11871.0	76574.0
112(2023)	3378030.0	662828.0	285183.0	115190.0
111(2022)	4057447.0	594471.0	170759.0	272059.0
110(2021)	6202947.0	781131.0	394936.0	299261.0
109(2020)	5271945.0	1066775.0	685407.0	456555.0
108(2019)	4200061.0	770491.0	415626.0	251476.0

Financial Outlook: Financial Trend

Chart

Category	Gross Margin	Operating Margin
113 (2024)Q3	0.156	0.005
112(2023)	0.19621732193023744	0.08442287368673458
111(2022)	0.14651355889553208	0.042085330997545994
110(2021)	0.12592901406379903	0.06366909148183919
109(2020)	0.20234941752996286	0.13001027135146517
108(2019)	0.18344757373761952	0.09895713419400337

Q & A

22