The 2 nd Investor Conference. October

Transcription

1 The 2 nd Investor Conference October

2 Operation Review - First three quarters of 2017 Contents Operation Strategy and Business Outlook Financial Highlights - First Half of

3 Operation Review - First three quarters of

4 Operation Review - First three quarters of 2017 Company Honors Evaluated as top 5% in the Corporate Governance Evaluation System. Top 42nd of 2016 Commonwealth Magazine ranking 2000 in the category of Information Equipment Sales and Service. Awarded the honor of Assistance of ESCO Business Development by TAESCO. Awarded the Domestic Autonomous Satellite Ground System Technical Support Project Appreciation Certificate by NSPO. Corporate Social Responsibility (CSR) 4 Photo: Tiouraren CSR report approved by British Standards Institute for the AA1000 Highest Assurance Level verification.

5 New Contract Amount and Distribution 18 In hundred million of NTD Overseas 17% Taiwan 83% IM 12% 6 4 Advanced Automation 7% Smart M&E 81% 5

6 Backlog and Distribution 25 In hundred million of NTD 23.0 Overseas 13% Taiwan 87% IM 5% 5 Advanced Automation 20% Smart M&E 75% 6

7 Business Smart E&M Intelligent Manufacturing Pharmaceutical & biotechnology plants clean room & MEP construction work in TW. Panel plants clean room & MEP construction work in TW. Taoyuan airport BHS and electromechanical system installation and revamping. Water Pumping Station Automation System Implement in TW. Advanced Automation Saudi Arabia SABIC group project engineering service. Petrochemical plant instrument reliability Audit & elec. equipment protection evaluation in TW. Plastics plant process optimization /DCS spare parts providing and maintenance project in TW. IAS System implementation for iii and PET recycling plant. Laser scanning and isometric drawing for petrochemical plant. SPF system implementation for petrochemical plant. Precise control implementation and cooling water system improvement for chemical plant. Phosphoric acid waste recycling process basic design. Implementation Mr. PSI for petrochemical plant. Semiconductor Factory Energy Data Acquisition and Mr. Energy ISO50001 implementation. Industry 4.0 planning and benefit assessment for chemical plant. Guiding Process Simulator for distillation tower and compressor implementation. Petrochemical process optimization modeling tools sales (AspenTech Intergraph) Product quality history and forgery prevention system installation. Product yield improvement and industry 4.0 service introduction for plastic factory. HAZOP / LOPA consulting services in China 7

8 Operation Strategy and Business Outlook 8

9 Top Tech Trends in These Years Source:KPMG Big Data Cloud Service IoT Bank3.0 Industry 4.0 & Intelligent manufacturing Portable Device FinTech Social Media 9 Smart City and Vehicle

10 Industry Trends IoT MGI estimates that potential economic impact of IoT in 2025, is $3.9 trillion to $11.1 trillion. (including consumer surplus) Factories 1.2~3.7 trillion Major Applications Operations optimization, predictive maintenance Cities SOURCE: McKinsey Global Institute analysis, ~1.7 trillion traffic control, public safety and health IM Unit : Billion dollars MARKET SIZE OF IM BETWEEN 2018 TO SOURCE: Topology Research Institute ( July,2017 ) IM: Intelligent Manufacturing (F) 2019 (F) 2020 (F) 10

11 Our Overall Strategy and Vision Smart E&M IM The backstage driving force for the industry developing intelligentization. Advanced Automation IIoT Solution and Service Provider System Integrator EPC Contractor 11

12 Smart Airport Market Outlook TIAC has launched the T3 projects in May, When T3 completed and service well, the Terminal 2 will be closed for refurbishment. The airport projects in SE Asia and India are booming. Business Strategy Focus on ICT solutions for passenger tracking, baggage handling, and landside information integration. Working with international vendor and experienced experts to assist customer to build target airport. Via CTCI Group overseas network, such as India and SE Asia to explore market. Photo: TIAC 12

13 Railway E&M Market Outlook Taiwan Forward-looking Infrastructure Development Program has arranged 420bn NTD budget for railway development in next 8 years. And could bring 700bn NTD domestic industry revenue benefits approximately. TRA E&M core system upgrading projects will be focused. Business Strategy Sightseeing Railway MRT in city THSR and TRA Connecting Infra- Development Program TRA to MRT Electrified railway In East TW Latest IoT technologies are investigated for better services, safer, and energy saving solutions and engineering services. 13

14 Industrial IoT Market Outlook New industrial intelligent parks will be developed in next 4 yrs around 20bn investment. Government invested intelligent building projects are booming. Existing factories upgrading, such as infrastructure, safety, O&M related are facing I 4.0 pressure. Business Strategy Focus projects in smart park, community, and factories. Data linking, Safety, O&M and Energy saving are main expertise. Integrating CTCI Group and outside resources as Eco system. Monitoring Platform Energy management Infra- Energy Safety Maintenance ERS PMS 14

15 Advanced Automation Market Outlook Industry park relocation in south part of Taiwan, plant relocation and the revamping work on automation. Refinery facilities upgrade,new construction work on LNG Receiving Terminal, Power plant expansion projects and Reclaimed Water Demo plant in Taiwan. Mega Petrochemical plant automation project in Fu- Jan PRC Business Strategy Focus on mega project automation, general process and machinery automation To cooperate with CTCI Group intelligent strategy to extend MAC work to overseas mega project general process machinery automation 15 To integrate CTCI Group resource to provide a series service from simulation to project upgrade to intelligence plant.

16 Intelligent Manufacturing Market Outlook Petrochemical, chemical and polymer plant revamping and CPS integrating demands are booming. Because of environmental law, waste liquid (such as IPA) in High tech plant, scrap tire or other waste recycling demands are booming. Energy Management demands are increasing in foundry plant. Business Strategy Integrating ASI, academia, governments resources, helping Manufacturing industry developing intelligentization. Developing Cloud Platform, providing full range of consulting services 16

17 Financial Highlights - First Half of

18 16 14 Consolidated Operating Revenues and Distribution Overseas 12% In hundred million of NTD Taiwan 88% IM 22% Advanced Automation 27% 4 2 Smart M&E % 18

19 Consolidated Statements of Comprehensive Income at the end of First Half 2017 In thousands of NTD 2017/06/ /06/30 YOY Operating revenues 459, % 619, % -25.7% Operating costs (351,895) -76.5% (520,377) -83.9% -32.4% Gross profit, net 107, % 99, % 8.6% Operating expenses (54,357) -11.8% (55,774) -9.0% -2.5% Operating income 53, % 43, % 22.7% Other gains and losses (2,472) -0.6% (1,724) -0.3% 43.4% Profit before income tax 51, % 41, % 21.9% income tax expense (9,104) -2.0% (3,962) -0.7% 129.8% Profit of the year 42, % 37, % 10.6% Profit attributable to: Owners of the parent 42, % 37, % 10.6% Basic EPS (in dollars) % 19

20 Consolidated Balance Sheet as of the First Half 2017 In thousand of NTD 2017/6/ /6/ /6/ /6/30 Current assets 1,050, ,797 Current liabilities 731, ,937 Financial assets 116, ,044 Non-current liabilities Non-current assets 85,389 88,796 Long-term Property, plant and equipment Other non-current assets 69,954 72,309 borrowings Other non-current liabilities 16,429 13, ,429 13,585 15,435 16,487 Total Liabilities 747, ,522 Total equity 504, ,115 Total assets 1,251,691 1,151,637 Total liabilities and equity 1,251,691 1,151,637 20

21 10.0 Dividend Allotment EPS Cash DPS Cash Dividend Payout Ratio(%) Unit:NT$ 120% % 77% 64% 103% 84% 90% % % 74% 74% 81% 100% 80% % 40% 20% % 21

22 22