FE — Investor Presentation 2018

Dec 4, 2018

Fortune Electric Co., Ltd.

Stock Code :1519

2018/12/04

Safe Harbor Notice

 This Presentation contains certain forward-looking statements that are based on current expectation and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

• Except as required by laws, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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、 1 Company Overview

Industry Heavy Electric

Type

Public listed

Date Listed April 16[th] , 1997

Founded Aug 26[th] , 1969

Chairman

President/CEO Ted Hsu/Ithen Hsu Taiwan 680 Employees Grou 820 p

Pedro Hsu

Capital

TWD 2.61 Billion

Equipment: Transformers, Switchgear, PV BOX, Panel, Transformer Smart Monitoring System, EV Charging Station EPC: Substation, Power Plant, Renewable Energy, Offshore Wind Farm, Smart Substation

Products

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2. Global Locations, Services without Time Difference

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Guanyin II Factory
PA Office
Taipei Office
Taichung Office
LA Office Hitachi-Fortune
Wu-Han
Factory
Chung-Li Factory
Guanyin III Factory
Maintenance 24 hours emergency recovering
service throughout the year
Kaohsiung Office
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3. Taiwan Power Transmission and

Distribution Power System Diagram

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4. The Most Completed Product Line

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Power
HV-GIS DC Switch Gear for
Transformer
RTU
MRT system PV Box
Heavy Energy
Electrical and
Industry Renewable Energy Management
Transformers Mechanical System
Distribution Equipment System Planning System
Engineering
Transformer Planning Integration
Planning
Solar Power Plant Smart Meter
Transformers for Turnkey for substation System
Distribution& Green energy Panel for /power plant Construction. Electric Vehicle
Transmission Railway System Charging System
Equipment
OBM Manufacturing Power Turnkey Renewable Energy Smart Grid
Project Planning System Planning Integration
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5. Focus on the Industry & Leading Technology

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The first heavy electricity manufacturer and exporter with maximum voltage and capacity in Taiwan.

First in Taiwan to 230kV 240MVA KEMA Short Circuit Test. pass

The first to offer 24 hours emergency recovering and repair service of heavy electrical equipment from all manufacturers.

The first to offer ultra low noise transformer and rapid transit system DC equipment technology

Export to PV box to solar power plant in Japan and finish 50 sets PV boxes to Chang-Kuang 100MWp solar power plant in Taiwan. Finish the construction of substation project for the first offshore wind turbine in Taiwan.

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6. Long-Term Working on Global Markets

6-1. Export ratio of the transformer around 40%, export type from distribution transformers to power transformer. Maximum voltage: 500kV and Maximum capacity: 560MVA.

6-2. Recognised and trusted by utilities power company and EPC in USA, Australia, Japan, Middle East and South East Asia. Win a long-tern contract and supply green energy new products.

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7. Ensure the Existing Markets, Grasp the Opportunities of Green Energy.

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7-1. Strengthen product competitiveness with mass production.

7-2. Improving the profit by operating the niche market with differentiation.

7-3. Following the green energy policy and establish the reputation and reference.

7-4. Continue to develop new products/business based on green energy and smart grid.

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8. Revenue Grew Steadily

Unit:100 million(NTD)

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9. Consolidated Financial Simple Highlights

	Unit：NTD in Thousands	Unit：NTD in Thousands	Unit：NTD in Thousands	Unit：NTD in Thousands
Item	2018Q3		2017Q3
	Amount	%	Amount	%
Property, plant and equipment	1,335,239	19%	1,375,841	20%
TOTAL Assets	7,085,483	100%	6,853,230	100%
Interest-bearing Debt	1,614,382	23%	1,540,320	22%
Total Liabilities	4,201,193	59%	3,734,668	54%
Total Equity	2,884,290	41%	3,118,562	46%
Operating Revenues (for the Nine Months Ended September 30)	4,187,752	100%	3,768,631	100%
GROSS PROFIT	324,408	14%	508,451	13%
NET PROFIT FOR THE PERIOD	(104,223)	-2%	76,918	2%
Key Indices
Current Ratio	168%		183%
Acid Test Ratio	89%		87%
Total Liabilities to EquityRatio	146%		120%
Netprofit rate	-2%		2%
EPS(NTD dollar)	(0.39)		0.3

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10. FE’s Green Power

Products in Smart Grid

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Power
Plant
EMS Power
Plant
Small
Hydro
Substation
Substation
ESS
AMI Solar
EVI Wind
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11. Fortune Smart New Products

-Connect International Trends, Excellent R&D Results, Intelligent and Reliable

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Remote monitoring, Early warning,
intelligent diagnosis accident prevention
Platinum Award
2 [nd]
Smart Internet
Of Core Current
Transformer Detector
Ultra Low Noise Transformer
International trend. It can
Smart reduce noise 25dB Cooling
Meter effectively system
High accuracy,
Self Energy saving ,
high reliability
Dehydrating
high reliability
Breather
Invention award
Distribution Wisdom Power silver medal
regeneration,
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maintenance-free
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Platinum Award

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patents

1. 2018, 2019, 5 products won the TAIWAN EXCELLENCE Award for two consecutive years. 2. 2018 Multinational Innovation and Technology Expo won the highest honor Platinum Award. 3. Commonwealth Magazine’s 2018 Corporate Social Responsibility (CSR) Awards.

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4. Has the invention patents at Taiwan and abroad.

13. Responding to Taiwan Renewable Energy Policy, Fortune Electric Keeps Developing Comprehensive Technologies and Services for Generating, Storing and Using Energy.

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Obtain the subsidy project of MEA for Smart Charging and Parking IOT Plan

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In charge of Longjin Energy Storage Demonstration Project

The partner of European & USA Automobile manufacturer for Electric Vehicle Infrastructure

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14. Retrospect and Prospect

Growth of Electric Vehicle Infrastructure Division of FE

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Mobile app
Multiple payment
solutions
Open network for all
EV infrastructure
充電站營運中心
Smart Parking
and
Charging System
Expanding EV
Integration
Charging Network
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Electrical and Mechanical Construction(Public/Private) Construction in Process

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Taichung Metropolitan Area Elevated Railway Project-Taichung Railway Station MEP Construction Project(CCL731)

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Solar Power and Energy Storage Construction Construction in Process

－ ITRI The Project of Setting and Verifying Energy Storage Stystem of Distribution Stystem in Taichung Longjing MRT power system Construction (AC/DC/Maintenance/Renew)

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Construction in Process Testing and Installing DC Power Equipment in Depot of MRT Xinzhuang Line

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