REC — Investor Presentation 2021

Nov 15, 2021

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Stock code:
2597
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Ruentex Engineering & Construction Co., Ltd. 2020 Investor Conference

General Manager Wei-Han Mo

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RUENTEX

Disclaimer

• This release is based on current subjective and objective factors as of the date of this release in summarizing and evaluating the past and current performances. If this release includes forward-looking statements, these forward-looking statements are subject to risks, uncertainties and assumptions that may cause actual results to differ materially from what may be expressed or implied by such statements.

• All statements in this release makes no representations, indications or guarantee as to the accuracy, completeness and reliability, and does not represent a comprehensive report for the subsequent development of the company or related industries.

• We undertake no obligation to update or revise any statements in this release.

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Outline

• Company features

 Business performance

 Business strategy

• Future outlook

潤泰總部:中崙大樓

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RUENTEX
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Introduction of Ruentex Engineering & Construction Co., Ltd.

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RUENTEX
Date of November 1975 Community Market
affairs and development
establishment:
security and sales
management services
Paid-in Capital: NT$1.8495 billion
S pace design Architectural
and planning and
Chairman: Chih-Hung Lee construction design
General Wei-Han Mo
Manager: Cement Ruentex Construction Structural
building Group planning and
No. of 920 materials Full series of design
comprehensive services
Employees:
ISO9001
Quality/Safety Mechanical Construction
and health (2008 International Quality and electrical engineering
engineering
certification: Standards) Precast
engineering
TOSHMS & OHSAS 18001
(Occupational safety and
health)
Comprehensive value-added solutions to
quickly integrate the construction team
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Basic information

 Grade A Construction Company

• Civil engineering design and construction

For more details, please search the official website www.rtc.com.tw

• Comprehensive value-added solutions to quickly integrate the construction team

• Mechanical and electrical engineering company

• Mechanical and electrical system engineering design and construction

 Precast factory

• Design and construction of precast wall and precast structure

• Core precast technology

• Leading innovative R&D in the industry

• Precast structure by special construction method

• Production and sales of precast concrete products

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RUENTEX

— Subsidiary Ruentex Materials

• Shareholding %: 39.15%

• R&D, production and sales of cement and RT mix (cement formula)

The developed offshore wind power grout has obtained certification from an authoritative institution, and has tapped into the wind power supply chain

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•
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• Abundant RT mix product lines

• Mortar

• Finish gray

• Fix

• Filling material

• Non-shrinkage grout

• Self-leveling floor screed

• Waterproof

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RUENTEX

Ruentex Features

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 Comprehensive and rapid integration

• Innovative R&D, patented technology

• Fast construction method, precision precast

• Aluminum mold, automated construction

equipment

• Mechanical and electrical MRO, sustainable maintenance

• 4D BIM

• E-management, SAP ERP

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Leading R&D Technology-based

 Already obtained 674 patents (including 20U.S. patents)  68patents pending

 Develop and promote precast housing to solve the problem of insufficient workforce

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 Development and application of new precast construction  Optimizing construction method of tech offices and business areas, and deploying global patents

 Construction technology and equipment upgrade

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RUENTEX

Precast products (produced from selfowned precast factory)

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Prestressed Precast roof slab

Grid Precast waffle slab

Precast column

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Precast beam

Precast exterior wall (Decorative stone) Precast exterior wall (rubber mold concrete)

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Precast construction - Fast, precise and environmentally friendly

RUENTEX

secondary beam installation

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Metal Deck installation

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Main beam installation

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施工影片
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for Beamcolumn joint

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Column installation

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Reinforcement and concrete casting for floor Floor grout

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Next floor

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Introduction of new equipment and technology

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• First for applying aluminum mold, concrete distributor

• and other equipment

• Improve construction efficiency and solve the problem

of labor shortage

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Mechanical and electrical features

Building life cycle

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Construction: Inspection

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Maintenance Repair and Overhaul (MRO)

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RUENTEX
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Electromechanical Features; Development of Electromechanical Automation (Pipeline Design)

• Just three steps to quickly complete the drawing!

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1 Select automation
3
Completed
2 Set illustration terms
2800
2500
3000
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Information transparency, e-management, function and enhancement

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ERP(SAP)
•
Integrate all business information
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BIM planning technology
• Provide integrated information
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e-Learning/passport
• Digital learning to enhance capabilities
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CRM information transparency
• Enhancing communication
efficiency with customers
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R&D website/KM
• Technology inheritance and knowledge
sharing
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PAD fully upgraded

Mobile management
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CCTV
• Zero distance management and
communication
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MRO
•
3D maintenance and repair
disc
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2021 Honor Award

RUENTEX

• Won the 2021 Safety and Health Engineering of Ministry of Labor (Excellent) (New Turnkey Construction Public Housing of Zhongli District I)

• Won the 15th Safety Gold Prize - Public Works (Excellent) (New Turnkey Construction Public Housing of Zhongli District I)

• Won the 15th Safety Gold Prize - Civil Residential Construction (Excellent) (Coni International Group Chiayi New Turnkey Construction)

• Won the 2021 Taoyuan Safety and Health Engineering (Excellent) (New Turnkey Construction Public Housing of Zhongli District I)

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經營績效

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RUENTEX
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• Business performance

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RUENTEX

Revenue in the most recent 5 years (consolidated)

18,000 16,000 14,000 12,000

18,000 Units: NT$million 15,246 16,000 14,468 14,000 11,637 12,000

10,000 8,646 7,555 8,000

6,000

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4,000
2,000 1,089 1,228
731 733
430
-
106年 2018 107年 108 2019年 21 0 20 9年 1101Q21-3Q21 年前3季
2017
稅後淨利Net profit 營業收入Operating revenue
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2019–2021 consolidated sales

RUENTEX

2019 2020 1Q21–3Q21 Operating revenue 11,637,322 14,468,066 15,245,980 Gross profit 1,432,686 1,959,894 2,321,372 Operating expense 714,530 803,987 701,063 Operating income 718,156 1,155,907 1,620,309 Non-operating income 164,561 183,813 98,173 Pretax profit 882,717 1,339,720 1,522,136 Net profit 733,133 1,089,458 1,227,925 Net profit attributable to the parent company 679,710 1,009,976 1,274,221 Units: NT$ thousand
	2019	2020	1Q21–3Q21
Operating revenue	11,637,322	14,468,066	15,245,980
Gross profit	1,432,686	1,959,894	2,321,372
Operating expense	714,530	803,987	701,063
Operating income	718,156	1,155,907	1,620,309
Non-operating income	164,561	183,813	98,173
Pretax profit	882,717	1,339,720	1,522,136
Net profit	733,133	1,089,458	1,227,925
Net profit attributable to the parent company	679,710	1,009,976	1,274,221

Note: The above information is the consolidated financial results.

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RUENTEX Units: NT$ thousand

2019–2021 consolidated assets

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Year	2019	2020	1Q21–3Q21	1Q21–3Q21
Total assets	11,129,848	12,048,273	16,103,776
Total debt	5,849,449	6,343,179		8,495,060
Shareholders’ total equity	5,280,399	5,705,094		7,608,716
Share capital	1,350,000	1,350,000		1,849,500
Net value per share (NT$)	28.57	31.47		32.77
EPS (NT$)	5.03	7.48	6.89

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Dividend payout in the most recent 5

years

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RUENTEX
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Year	2016	2017	2018	2019	2020	2020	2020
EPS	4.5	2.55	4.9	5.03	7.48
Cash dividend (incldg.Statutory surplus)	4	2.35	4.8	4.5		6.5
Stock dividend	-	-	-	-		3.7
Dividend payout ratio	88.89%	92.16%	97.96%	89.46%		89.57%
Yield	8.80%	6.28%	7.79%	6.76%	5.95%

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RUENTEX

Contract engineering

Project name	Type	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod	Contractperiod
			2021				2022				2023
1、Ruentex Awesome	Civil construction (innovative)
2、Ruentex DingFong	Civil construction (innovative)
3、Ruentex Wen Hua	Civil construction (innovative)
4、MRT sites in Sanchong	Civil construction (innovative)
5、Ruentex Xinyi	Civil construction (innovative)
6、Ruentex Home	Civil construction (innovative)
7、Daan Fuyang	Civil construction (innovative)
8、Wugu A	Civil construction (innovative)
9、Wugu B	Civil construction (innovative)
10、Qingtian St.	Civil construction (innovative)
11、Nangang Yucheng Section	Civil construction (innovative)
12、Special construction5(SC5)– PC	Civil construction (others)
13、Jiangling exterior wall	Civil construction (others)
14、Tech company F18P4	Civil construction (others)
15、Tech company12P8	Civil construction (others)

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RUENTEX

Contract engineering

Project name	Type	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period
			2021				2022				2023
16. Tech company – F18P5	Civil construction (others)
17. Tech company – F18P6	Civil construction (others)
18. Tech company – AP6A	Civil construction (others)
19. Tech company – F18P7	Civil construction (others)
20. ANA GEO	Civil construction (others)
21. Tech company – P5-BSGS	Civil construction (others)
22. Tech company – F14P8	Civil construction (others)
23. Tech company – F18P8	Civil construction (others)
24. Special construction 4 (SC4)	Civil construction (others)
25. Hope Plaza	Civil construction (others)
26. Special construction 5 (SC5)– PC	Civil construction (others)
27. Yun San Bentley	Civil construction (others)
28. Sheng Ai Shan Zhuang Spiritist Center	Civil construction (others)
29. Phison 5	Civil construction (others)
30. Coni Chiayi	Civil construction (others)

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RUENTEX

Contract engineering

Project name	Type			Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period	Contract period
				2021			2022				2023
31. Factory C of Project T	Civil construction (others)
32. Yeong Guan – Taichung	Civil construction (others)
33. Phison 3-Dimensional ParkingLot	Civil construction (others)
34. Amaran Biotech	Civil construction (others)
35. Ziyun temple	Civil construction (others)
36. Hsuan Chuang Cultural And Educational Foundation	Civil construction (others)
37. Meikuang Parking Space	Civil construction (others)
38. Molie Quantum Energy	Civil construction (others)
39. Ting Chin Tech Zhubei	Civil construction (others)
40. Chungli No.1	Public construction
41. National Taipei University of Nursing and Health Sciences	Public construction
42. Wanhua District Social Housing	Public construction

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Business performance — construction in progress

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RUENTEX
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As of october 2021

• The total contract amount for the construction is NT$54.6 billion

• As of october 2021, a total of NT$19.5 billion has already been recognized.

• NT$35.1bn of the contract amount has not yet been recognized.

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RUENTEX

Additional orders for Ruentex in 2021 (January-October)

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• Ruentex New Turnkey Project – Qingtian St.

• Yeong Guan Taichung Port Factory New Turnkey Project

• T company AP6A precast

• • New turnkey project of social housing in 2 bases in Huajiang Section, Wanhua Dist., Taipei City

• Expansion Project of Ziyun Temple, Southern Tiantai, Dharma Drum Mountain

• T company F18P7 precast

• T company F18P5 precast

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RUENTEX

Additional orders for Ruentex in 2021 (January-October)

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• M company P3 parking garage

• T company F18P8 precast

• Molie Quantum Energy Lithium Battery Plant in Kaohsiung

• Xuanzang Cultural Park, Zhengjue Temple

• G Company Zhubei Factory New Turnkey Project

• T company F18P6 precast

• T company F14P8 precast

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RUENTEX

Approximately Bidding projects NT$27.2 billion

Basic order information	Estimated Amount	Floor Quantity	Total Floor Area m2	Schedule	Schedule
				Begin **construction **	Completed **construction **
PC exterior wall of Taipei residential buildings	160,000, 000	-	-	2022Q3	2023Q1
Nangang Headquarters	15,000,0 00,000	-	195,000	2022Q3	2026Q2
Shilin Construction	5,000,00 0,000	B3~18F	74,000	2022Q1	2024Q1
Taipei City Urban Regeneration	850,000, 000	B4~14F	12,000	2022Q3	2025Q2
M company new factory	4,300,00 0,000	B1~5F	44,000	2022Q1	2022Q3
S company new factory	1,900,00 0000	-	9,000	2022Q3	2023Q4
	,

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營運策略

Business strategy

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RUENTEX

Environmental analysis Ruentex Profitable

• The return of Taiwan companies and investment of foreign tech manufacturers to set up factories in Taiwan

• New generation TSMC factory

• Precast products are progressively becoming mature products under severe labor shortage.

• Domestic and foreign companies have been attracted to the brand Ruentex.

• The Group has abundant resources, and talents from various fields with the ability for horizontal and vertical integration, which can help create niche products for the Company.

• Leading R&D innovation in the industry which enhances company value and features.

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Target customers – actively building the customer base

RUENTEX

• Plant investment of high-tech manufacturers and foreign companies

• Major international companies have invested in Taiwan and built data centers, while several international companies are currently under negotiation.

• Ruentex is selected as a foreign investment target as it is experienced in plant construction and integration.

• Actively seize contract opportunities in the high-tech industry (wafer, optoelectronics, DRAM).

• General offices and business areas

• With the various opportunities, precast can meet company requirements during tight construction schedules.

• Adopting the new SRC construction method for commercial office buildings to create customer value.

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Target customers – maintaining customer RUENTEX relationships

RUENTEX

• Urban construction project

• The parent company’s innovative project is estimated at NT$100 billion for the next 10 years.

• Government-led urban renewal/reconstruction of urban unsafe and old buildings

   - (Source: ETtoday News Cloud › ETtoday Real Estate Cloud, 14:30, June 9, 2020)
  

• Public construction

• Social housing

  • Corporate social responsibility

  • Provide excellent construction quality

• Other public works, government-led urban renewal, market reconstruction

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RUENTEX

Development strategy

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Leading R&D Technological innovation

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Precast Technologybased Developing automated construction

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Value integration services Reputation, trust, and mutual support

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Future outlook

• Innovative R&D/building construction

• Adhere to innovative R&D and optimization of construction quality

• Introduce new construction methods and new technologies

  • Replacement of traditional formwork with aluminum formwork, and replacement of steel bar binding with continuously wound bars or wires, in order to reduce labor requirements by precast products, and leading the industry in changing traditional construction methods.

• Active development/business growth

• Market expansion and revenue growth.

• Generate profits for shareholders and give back to society.

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Thank you

Ruentex Engineering & Construction

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