IRF — Interim / Quarterly Report 2018

Dec 18, 2018

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Stock Code: 2228.TW/2228 TT

Dec. , 2018

Disclaimer

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• This report and released message contains information about corporate prospects, inancia up f l d ates an d sa es orecasts, esta l f bl is h e d on t h e asis o b f internal resources and external reference sharing. The actual performance may be different from expressed or implied predictions due to uncontrollable and/or unpredictable risks.

• All prospects reflect Iron Force’ s expectations toward the future, and may be subject to change and Iron Force reserves the right to alter, update and change relevant information from time to time without prior notice.

2

Operating overview ： Product mix breakdown

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Revenue break down (%) for Iron Force

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2018Q3
2017
24.7%
25.2% 2016
27.2% 2015
34.7% 2014
34.7%
65.3%
65.3%
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• OEM and ODM of customized store display fixtures

• Clothes hangers with a variety of different materials

• Complete retail store design

Autoparts Display

• Airbag inflators and precision metal parts for automotive safety systems

• • u bes

• High precision metal t for seatbelt retractor / pretensioner systems

• Steering columns/shafts and related components for the EPS system

3

Main Autoparts Product

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500,000
NTD’000
450,000 446,696
419,789 441,436 [448,435 ] 436,314
432,030
390,519 423,383
400,000
374,781
387,584 384,002 390,686
364,196
350,000 349,175
326,760
319,096 321,859 301,055
300,000 282,480 285,865 [291,984 ] 295,732 298,415 295,115
268,893 266,768 266,630 302,275
266 , 336 263 , 766 285,349 Seabelt
250,000 256,479 267,442 259,713
249,334 245,082 252,911 251,271 Airbag
200,000
EPS
150,000
Others
100,000 81,509
53,673 [57,729 ] 51,309 [63,214 69,973 73,051 69,673 76,410 63,798 79,381 81,261 88,953 91,892 ] 70,505
50,000 31,319 30,808 [42,492 ] 30,262
- 7,187 5,885 6,384 8,282 6,226 5,051 4,232 6,048 4,645 5,447 5,313 5,080 5,285 6,891 3,386 3,973 4,410 7,409 9,838
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2,014 2,015 2,016 2,017 2,018
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Revenue break down (%), Autoparts

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100%
6% 9% 9% 10% 10%
80%
47%
60% 50% 51% 53% 53% Others
EPS
40% Seabelt
46% Airbag
20% 41% 40% 37% 36%
0%
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4

2014

2015

2016

2017

2018Q3

Performance – Income Statement

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2014-2018Q3 Income Statement

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Currency：NTD’000
Y2014 Y2015 Y2016 Y2017 Y2018Q3
% % % % %
Gross Sales 3,506,989 100.00% 3,944,842 100.00% 4,461,014 100.00% 4,325,937 100.00% 3,160,872 100.00%
Cost of Goods Sold 2,422,852 69.09% 2,697,479 68.38% 3,037,565 68.09% 3,061,097 70.76% 2,312,699 73.17%
Gross Profit 1,084,137 30.91% 1,247,363 31.62% 1,423,449 31.91% 1,264,840 29.24% 848,173 26.83%
Operating Expense 514,661 14.68% 542,808 13.76% 543,232 12.18% 614,233 14.20% 451,835 14.29%
Operating Profit 569,476 16.24% 704,555 17.86% 880,217 19.73% 650,607 15.04% 396,338 12.54%
Non-Operating Income
54,850 1.56% 119,545 3.03% 49,586 1.11% 132,493 3.06% 129,495 4.10%
(Expense)
Pre-Tax Income 624,326 17.80% 824,100 20.89% 929,803 20.84% 783,100 18.10% 525,833 16.64%
Income Tax 137,761 3.93% 204,057 5.17% 242,112 5.43% 232,940 5.38% 140,587 4.45%
22.07% 24.76% 26.04% 29.75% 26.74%
Net Income 486,565 13.87% 620,043 15.72% 687,691 15.42% 550,160 12.72% 385,246 12.19%
EPS 6.79 8.55 9.09 7.26 5.08
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5

Performance – Income Statement

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NTD’000
2018Q3 2017Q3
YOY
%
Amount % Amount %
Gross Sales 3,160,872 100 3,275,710 100 (3.5)
Cost of Goods Sold 2,312,699 73 2,311,411 71 0.1
Gross Profit 848,173 27 964,299 29 (12.0)
Operating Expense 452,887 14 459,342 14 (1.4) S ： -31,019 ； A ： +6,819 ； R&D ： +17,745
Operating Profit 395,286 13 504,957 15 (21.7)
Non-Operating Income
130,547 4 31,255 1 317.7
2018Q3 Mold fee
(Expense)
Pre-Tax Income 525,833 17 536,212 16 (1.9)
Net Income 385,246 12 358,549 11 7.4
EPS (NTD) 5.08 4.73 7.4
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6

Outlook

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• 長期合作協議，除了綁定舊產品外，可取得更多新產品報價機會。

• 汽車零件於歐洲 ( 波蘭 ) 設廠，建立更密切合作關係，就近服務客戶的研發中心。並與歐洲 客戶洽談當地採購之品項 ( 例如 EPS) 。目前已取得第一筆訂單 ( 預縮式安全帶 ) ，預計 2019 。

• 年 Q4 投產

• 今年 4 月成立新產品事業處 ( 汽車零件 ) ：

• 舊品項 ( 被動安全類 ) 、老客戶由原本的汽車零件事業處三個業務團隊、三個工廠 ( 台 灣、大陸、波蘭 ) 來維持。

• 新產品事業處還是專注在汽車產業，初期先運用目前集團現有廠房：

  • 以本公司金屬機加工及生產管理技術，研究與 ADAS 相關產品之機構件。 ( 例如 Camera housing)

  • 以本公司金屬機加工、生產管理技術及與客戶長期關係，研究客戶待解決之痛 點。 ( 例如 Thermal solution)

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Thank You

Speaker: Terry Lin Email: terrylin@irf.com.tw Website: www.ironforce.com.tw

Disclaimer

This presentation may contain statements that express management‘s expectations about future events or results rather than historical facts. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected forward-looking statements , the company cannot give assurance that such statements will prove correct. For additional information on factors that could cause company’s actual results to differ from expectations reflected in forward-looking statements, please see audited reports filed with the Taiwan Stock Exchange corp.