IRF — Investor Presentation 2018

Mar 12, 2018

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Stock Code: 2228.TW/2228 TT

Mar. , 2018

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.

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About Iron Force

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The Board of directors

Establishment April 27, 1977

	1,900+(including subsidiaries in China and Germany)	1,900+(including subsidiaries in China and Germany)	1,900+(including subsidiaries in China and Germany)	Titles	Names	Main Experience
l	NT$ 757,802,810			Chairman	Alan Huang	Founder of Iron Force Industrial Co., Ltd.
nt	Chairman: Alan Huang ; President: Hank Huang			Director	Hank Huang	Sales manager/GM/President of Iron Force Industrial Co., Ltd
es	s (1) Auto parts (2) Display Fixtures 2016 consolidated revenue of NT$4.46bn / net profit of NT$688 mn			Director	Alex Chang	Previously, Chief Manager, Investment, Industrial Technology Investment Corporation; Senior VP, DelSolar Co., Ltd. CPA
				Director	Edward Way	Previously, Chairman, Deloitte Taiwan & Chairman, Wei Yung Tu CPAs Office
						Currently, Chairman, YCSY Co., Ltd
	Shareholding structure			Independent Director	Theresa Wu	CPA Previously, Partner, PwC Taiwan Currently, Chairman, Fate Design
Others,				Independent	Yaotsu	Previously, Chairman, Fu Sheng Industrial Co., Ltd;
	39%			Director	Shih	VP, Lancer Systems
			Chairman
			family, 61%	Independent Director	Judy Chang	CPA

Employees	1,900+(including subsidiaries in China and Germany)
Share capita	l NT$ 757,802,810
Manageme	ntChairman: Alan Huang ; President: Hank Huang
Main busin	ess (1) Auto parts (2) Display Fixtures
Earnings	2016 consolidated revenue of NT$4.46bn / net profit of NT$688 mn

Aug., 2017

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About Iron Force – Company Structure

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Iron Force
Administration Division (AMD)
Auto Parts Division (APD)
Display Fixtures and Housewares Division (DHD)
100% 100% 100%
Cortec GmbH Iron Force Poland
Transtat Investment Ltd.
DHD in Germany (DHDG) APD in Poland (APDP)
100% 100%
Huzhou Iron Force Zhejiang Iron Force
APD in China (APDC) DHD in China (DHDC)
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Operating overview ： Product mix breakdown

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Revenue break down (%) for Iron Force

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•OEM and ODM of
customized store
25%
display fixtures
27%
•Clothes hangers with a 35%
63%
variety of different
35% 65%
materials 37%
65%
•Complete retail store 2013
73%
design 2014
75%
2015
2016
2017
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Autoparts

• Airbag inflators and precision metal parts for automotive safety systems

• High precision metal tubes for seatbelt retractor / pretensioner systems

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

Display

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Main Autoparts Product

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Autoparts Revenue (NTD Thousand)

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000

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Main Autoparts Product

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Revenue break down (%), Autoparts

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100%
5% 6% 9% 9% 10%
80%
43%
47%
50% 50%
53%
60%
Others
EPS
Seabelt
40%
Airbag
51%
46%
20% 41% 41%
37%
0%
2013 2014 2015 2016 2017
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Main Product ： Airbag inflator parts

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Curtain Driver’s seat
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Side/Knee passenger’s seat

Main Product ： Airbag inflator parts

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According Stratview Research forecasted that the automotive airbag inflators market promises good growth opportunity and is likely to grow at a CAGR of 3.8% during the forecast period of 2016 to 2021 to reach $4.8 billion in 2021. Expected growth in automotive production, introduction of more bags per car, growth in Asia Pacific, and increasing safety standards across the globe are the major drivers of airbag inflators market.

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6.00
5.00
4.00
3.00
2.00
1.00
0.00
2016 2017 2018 2019 2020 2021
Unit: billion/US$
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Source: Stratview Research ---Global Automotive Airbag Inflators Market by Vehicle Type (Compact Car, Midsize Car, Large Car, MPV and LCV, SUV, and Others), by Airbag Type (Front Airbag, Side Airbag, Knee Airbag, and Curtain Airbag), by Inflator Type (Pyrotechnic, Stored Gas, and Hybrid), by Region (NA, Europe, APAC, ROW), Trend, Forecast, Competitive Analysis, and Growth Opportunity: 2016 – 2021

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Main Product ： Seat belt pre-tensional tube

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Main Product ： Seat belt pre-tensional tube

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Main Product ： Seat belt pre-tensional tube

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According the research Persistence’s the newest report, that the global automotive seat belt market is estimated to be valued at US$ 11,987.6 Mn by the end of 2015. The market is expected to register a CAGR of 8.4% between 2015 and 2021. In terms of volume, the market accounted for 433,480 thousand units in 2014, and is expected to increase at a CAGR of 6.8% over the forecast period to reach 684,555 thousand units by 2021 and by value to Account for US$ 19.5 Bn by 2021.

By technology type, pretensioner segment was valued at US$ 3,913.4 Mn in 2014 and is expected to increase at a CAGR of 8.0% over the forecast period to account for US$ 6,717.4 Mn by 2021.

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8000
Seat belt pre-tensional
7000
6000
5000
4000
3000
2000
1000
0
2014 2015 2016 2017 2018 2019 2020 2021
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Unit: million/US$

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Source: Persistence--Global Market Study on Automotive Seat belt: 3 Point Seat Belt Segment to Witness High Growth by 2021

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

Penetration rate

	Japan	Europe and America	China
2015	90%	75%	38%

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Main Product ： Precision tubes for electrically powered steering

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According Research and Markets’s report that forecasted the electric power steering (EPS) system market is projected to grow from 16.82 billion to 23.92 billion at a CAGR of 7.29% from 2016 to 2021

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30
25
20
15
10
5
0
2016 2017 2018 2019 2020 2021
Unit: billion/US$
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Source: Research and Markets--Automotive Electronic Power Steering System Market By Type, By Components, Vehicle Type and Region - Global Trends and Forecast to 2021

New Product ： Pop-up hood parts

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New customer ： Toyoda Gosei

New Product ： parts of CDC dampers (Continuous Damping Control)

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New customer ： SACHS (SACHS is a brand of ZF)

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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.