IRF — Investor Presentation 2015

Jul 21, 2015

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Stock Code: 2228.TW/2228 TT

Disclaimer

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• This report and released message contains information about corporate prospects, financial updates and sales forecasts, established on the basis of 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

About Iron Force – Company Structure

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Iron Force
President Office (PO)
Auto Parts Division (APD)
Display Fixtures and Housewares Division (DHD)
100% 100%
Cortec GmbH
Transtat Investment Ltd.
DHD in Germany (DHDG)
100% 100%
Huzhou Iron Force Zhejiang Iron Force
APD in China (APDC) DHD in China (DHDC)
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3

About Iron Force –

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Main Product ： Airbag inflator parts

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4

About Iron Force –

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Main Product ： Airbag inflator parts

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5

About Iron Force –

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Main Product ： Seat belt pre-tensional tube

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6

About Iron Force –

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Main Product ： Precision tubes for electrically powered steering

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• Advantages of electrically powered steering (EPS) :

Lower fuel consumption / CO2 emission reduction Tunable steering assistance characteristics 'End of line' calibration, plus built-in diagnostics Flexible packaging in vehicle Simplified vehicle logistics Simplified supplier chain logistics

7

Updating & Planning –

Operating overview ： Product mix breakdown

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Auto parts division continues to grow and has become the growth driver for Iron Force Display fixtures division provides steady cash flow

Auto Parts Division (APD)

• Developing and building specialized automated machines in house to

• possess key manufacturing processes/equipments

• Highly trusted by clients

• Strict quality control system

• Continuous improvement

Display Fixtures and Housewares Division (DHD)

• Factories equipped with cost-effective facilities for all kinds of

• surface processing

• Logistic services covering Taiwan, China and Europe

• Certified supplier for many major chain stores

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Relative Market Share (Cash Generation)
H Stars Question Mark L
APD
Cash Cows Dogs
DHD
L
(Cash Usage)
Market Growth Rate
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4,000
Revenue break down (%) for Iron Force
NTD Mn
3,500
3,000
34.7%
42.6% 36.6%
2,500
2,000 65.3%
47.9%
49.1%
1,500 66.3% 56.6% 63.4% 33%
57.4%
1,000 52.1%
67%
50.9%
500
33.7% 43.4%
-
2008 2009 2010 2011 2012 2013 2014 2015 H1
DHD 1,298 896 1,093 1,225 1,221 1,102 1,215 605
APD 659 686 1,134 1,334 1,648 1,911 2,284 1,230
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8

Updating & Planning – Future planning

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Based on the market breakdown, Iron Force keeps close relationships with three leading suppliers

NTD (sales ； % of autoparts division sales )

Main stream SRS factory Autoliv	Main stream SRS factory Autoliv	Takata	TRW	Others	Total
Airbag inflator parts 15Q1 21 Mn3.5% 2014 115Mn5.0% 2013129 Mn6.7% 2012150 Mn9.1%		15Q1 166 Mn26.8% 2014 644Mn28.2% 2013568 Mn29.6% 2012592 Mn35.9%	15Q1 47 Mn7.6% 2014146 Mn6.4% 2013156 Mn8.1% 2012144 Mn8.7%	15Q1 33 Mn5.3% 2014141 Mn 6.2% 2013129 Mn6.7% 2012112 Mn6.8%	15Q1 267 Mn43.2% 2014 1,047Mn 45.8% 2013982 Mn51.3% 2012998 Mn60.6%
Seat belt Pre-tensional tube	15Q1 193 Mn31.1% 2014 761Mn 33.3% 2013620 Mn32.4% 2012481 Mn29.2%	15Q1 59 Mn9.5% 2014161 Mn7.1% 2013105 Mn5.5% 201284 Mn5.1%	15Q1 40 Mn6.5% 2014152 Mn6.7% 201394 Mn4.9% 201213 Mn0.8%	-	15Q1 292 Mn47.2% 2014 1,074Mn47.0% 2013819 Mn42.7% 2012578 Mn35.1%
Precision tubes for EPS -		-	15Q1 54 Mn8.7% 2014135 Mn5.9% 2013104 Mn5.4% 201271 Mn4.3%	-	15Q1 54 Mn8.7% 2014135 Mn5.9% 2013104 Mn5.4% 201271 Mn4.3%
Others -		-	15Q1 6 Mn 201428 Mn 201311 Mn 20120.8 Mn	-	15Q1 6 Mn 2014 28Mn 201311 Mn 20120.8 Mn
% of autoparts group sales (2015 Q1) 34.61% 214 Mn 36.36% 225 Mn 23.75% 147 Mn				5.31% 33 Mn	619 Mn
% of autoparts group sales (2014) 38.34% 876 Mn 35.28% 806 Mn 20.20% 461 Mn				6.18% 141 Mn	2,284 Mn
% of autoparts group sales (2013) 39.35% 750 Mn 35.31% 673 Mn 18.57% 365 Mn				6.77% 129 Mn	1,916 Mn

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Updating & Planning – New factory planning

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Old factory area
，
(40 acres 1 floor)
New factory area
，
(40 acres 2 floors)
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Updating & Planning – 募資規劃

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		12個營業日	12個營業日
			生效				3日
2/26 籌 資	董 事 4/9	4/20 籌 資	5/7 籌 資	5/8 取 得	轉	5/18 5/12 詢 圈 詢 圈 訂 價 5/14		5/25 債 款 5/26 掛 牌
起 始 會	會 決 議	案 送 件	案 申 報	證 期 局	換 公	開 始	截 止 日	匯 入 公 上 櫃 日
議	辦 理 籌	證 期 局	生 效	申 報 生	司 債			司 帳 戶
	資			效 函		董	召 8月初	停 5日 8/	現 8/	原 原 5個營業日 8/ 8/		股 9/	新 9/
					現	事 長	開 董	止 過	金 增	股 東	股 東	款 匯	股 掛
					金	決	事	戶	資	及	及	入	牌
					增	定 認	會 決	開 始	認 股	員 工	員 工	公 司	上 市
					資	股	定	日	基	繳	繳	帳	日
						基	現		準	款	款	戶
						準	增		日	開	截
						日	訂			始	止
註：籌資案須於申報生效後6個月內募集完成							價			日	日

Performance – Financial analysis

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32.45%
30.91%
30.37%
29.97%
26.60%
20.62%
17.80% 19.10%
16.29% 15.12% 16.55%
15.72%
12.45%
14.29% 16.24%
13.44%
13.14%
11.79%
2010 2011 2012 2013 2014 2015Q1
Gross profit rate 32.45% 29.97% 26.60% 20.62% 30.91% 30.37%
Operation income rate 14.29% 13.44% 11.79% 13.14% 16.24% 16.55%
Pre-tax income rate 15.72% 16.29% 12.45% 15.12% 17.80% 19.10%
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12

Performance – Financial analysis

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19.90%
19.16% 20.21% 21.28%
17.39%
16.77%
15.77%
14.96% 16.48%
15.01%
12.65%
11.51%
14.93%
13.87%
11.92%
11.31%
11.03%
9.41%
2010 2011 2012 2013 2014 2015Q1
19.16% 20.21% 16.77% 17.39% 19.90% 21.28%
14.96% 15.01% 11.51% 12.65% 15.77% 16.48%
11.31% 11.92% 9.41% 11.03% 13.87% 14.93%
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	2010	2011	2012	2013	2014	2015Q1
ROE	19.16%	20.21%	16.77%	17.39%	19.90%	21.28%
ROA	14.96%	15.01%	11.51%	12.65%	15.77%	16.48%
Net income to sales	11.31%	11.92%	9.41%	11.03%	13.87%	14.93%

13

Performance – Financial analysis

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401.43%
365.36%
313.91%
306.45%
270.21%
216.21%
214.56%
254.33%
197.72% 242.81%
122.47% 160.62%
40.37%
41.79% 40.79% 35.89%
36.52% 39.53%
2010 2011 2012 2013 2014 2015Q1
Current ratio 306.45% 216.21% 270.21% 401.43% 365.36% 313.91%
Quick ratio 197.72% 122.47% 160.62% 254.33% 242.81% 214.56%
Inv. & A-R/Total Asset 36.52% 39.53% 41.79% 40.37% 40.79% 35.89%
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Thank You

Deputy 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.