Tongtai Machine & Tool Co., Ltd

1Copyright © 2021 TTGroup

Tongtai Machine & Tool Co., Ltd.2021 Q1 Institutional Investor Conference

4526.TW

DATETIMEPLACE

: 2021/4/15: 15:40~16:20: TWSE

2Copyright © 2021 Tongtai Machine & Tool Co., Ltd.

Disclaimer

The above statements that pertain to future projections constitute the expectations, opinions,outlooks, or predictions of our company and its affiliates based on information available at thetime the statements were made. Such statements may be affected by known and unknown risksand inherent uncertainties, the existence or emergence of facts or factors that differ from theassumptions, suppositions, or judgments of the Company, or other factors. Consequently, theremay be significant discrepancies between actual results pertaining to the Company's futureearnings, management results, financial conditions, and other matters as explicitly or implicitlyreferred to in the statements and the content of such statements.

The presentation is run exclusively for the purpose of providing information and not for thepurpose of soliciting investments or recommending the buying or selling of specific shares orproducts. The company makes no warranty concerning the accuracy or completeness of theinformation and will not be liable for any damages arising out of use of the information thereof.


1

2

3

Tongtai and TTGroup Introduction

Operating Performance of 2020

Brief strategies in the key industries

Agenda


Tongtai and TTGroup

Introduction


Introduction of Tongtai Tongtai was established in 1969, and was listed on the stock exchange market in 2003.

We focused on developing special purpose machines in the beginning and then become a manufacturer that owns diverse production lines. The trade mark of Tongtaiis made of two “T”s. The gray “T” represents what Tongtai provides and the blue “T” represents what customers gain.

Vision

Mission

Become the top machine and machining solution provider in the global machine tool industry, and to be the most reliable partner for clients.

To be the best solution provider of machine equipment and techno services for assisting clients to step into smart manufacturing's field.

Capital : NT$2.56 billionStock symbol : 4526.TWChairman : Mr. Jui-Hsiung YenEmployees : 720 (2021.03)Certification : ISO 9001 、ISO 14001、

ISO 50001 、 AEO Certification

Profile

Trust & Technology

技術Technology

東台Tongtai

服務Service

品質Quality

利益Profit

客戶Customers

滿足Satisfaction

信賴Trust


Organization chartChairman

Machine tools department

PCB department AM department Administration office

GM office

General manager

Assembly

40%

Adminidtr-

ation19%Sales/After

-sales, 7%

Application

, 12%

R&D, 22%

, 0 PhD, 1%

Master,

12%

Bachelor,

60%

High school,

26%

, 0


Product overview of machine tools department

ＳtandardＯptionＩntegration

Standard Machine

Special purpose machine

Turnkey

Smart machine/Automation

Smart production line/Automation

Smart factory

S.O.I


Relevant items of PCB department

HDI

ABF

FPC

Rigid-flex board

HDI

ABF

FPC

Rigid-flex board

HDIABF

Car substrate

Mechanical drillingmachine

Laser drilling machine

Routing machine

Rigid-flex board

Car substrate


Drilling machine Mechanical drilling MultilayerPCB

Car substrate

Server PCB Depth control

BGA FPC HDI CCD

SD V V V V V V V

SDL V V V V V V VTCDM V V V V V V V V

Routing machine Routing machine

Shape Cutting

Depth control

Aluminum substrate

Multi-axis correction

CCD

TRM V V V

DCRM V V V V

TCRM V V V V V

Laser drilling Laser drilling HDI BGA FPC CompositeMaterial

Marking ICAssembly

TLC-2H22 V V V V V

TLU-1H22 V V V

TLMG-400 V V

TLCU-660 V V V

Three major processes achieve high precision, high efficiency and efficient production

簡報者

簡報註解

說明重點東台精機的電子設備主要三大製程對應的設備系列與對應項目說明以及東台多樣化的對應能力


TTGroup management philosophy

Tongtai plays a main role in TTGroup and integrates international and domestic resources for

enhancing Taiwanese manufacturing industry’s status in the global market.

Complementing product lines

Technological support

Channel support

High-end technologies introduction

Complementing markets

Channel sharing

Domestic partners International partners

Enhance Taiwanese manufacturing industry’s status in the global market


M&A history

• Vertical lathe• Alloy wheels market

• Large-scale 5-axis M/C• Aerospace market

• Multi-tasking turning center• Hardware market

• High-end Turnkey solutions• Tier 1 automotive market

54% 99.8%

52%

100% 100%


Classification of investees

%

TongYeh(Kaohsiung)

60.00%

TongFong(Kaohsiung)

99.93%

SKTD(Japan)98.73%

Shuzhou TongYu100%

Honor Seiki(Kaohsiung)

53.96%

Asia Pacific (Taichung)

99.83% TTM(Thailand)

100%

TTVN(Vietem)

100%

TTS(Malaysia)

52%

TTE(Netherlands)

100%

TTGF100%

Chin Jig (SH)69.98%

HPC(Austria)

100%

Quicktech(Tainan)51.99%

PCI(France)

100%

ANGER(Austria)

100% TTGMx(Mexico)

100%

TTJP100%

TSU100%

Anger USA100%

Anger Dutschland

100%

％ of consolidated revenue

Contrel Technology4.16%

Trading(Business area：machinery trading)

>50%

<50%

Tongtai (TW-4526)Machine manufacturer

Machine manufacturer(Business area：Machinery manufacturing)

Component manufacturer/Solution provider(Business area：Parts manufacturing and

maintenance service)

5% 94% 1%


2 Operating Performance of 2020


1,818

9,189

1,670

9,768

2,017

9,763

2,206

11,625

2,945

11,000

1,761

7,779

1,845

0

2,000

4,000

6,000

8,000

10,000

12,000

2015Q1 2015 2016Q1 2016 2017Q1 2017 2018Q1 2018 2019Q1 2019 2020Q1 2020 2021Q1

Unit: NT$ million

Consolidated revenue

Data Source: 2015-2020 Audited Consolidated Report & 2015 Q1-2020 Q1 Reviewed Consolidated Report

YoY+4.8％

Consolidated revenue for 2021 Q1 increased by 5% YoY due to the economic rebound, similar to the industry situation.


Gross profit and gross profit %

Unit: NT$ million； %

Data Source: 2015-2020 Audited Consolidated Report

Gross profit

Gross profit decreased following the decrease of revenue and the impact of the exchange rate

2,4792,151 2,096

2,716 2,476

1,108

27%

22%

21% 23%

23%

14%

0%

5%

10%

15%

20%

25%

30%

0

500

1,000

1,500

2,000

2,500

3,000

2015 2016 2017 2018 2019 2020

Q1 Gross Profit Year Gross Profit Gross Profit%

gross profit %


EPS and dividend payout rate

Unit: NT$； %

*FY2014 also declared another stock dividend of NT$0.2 per share.Data Source: 2011-2020 Audited Consolidated Report

Dividend distribution policy adjusts with development of the company. Due to the loss in 2020, the Company‘s Board of directors proposed not to distribute

dividends.


Condensed Consolidated Income Statement

Data Source: 2020 Audited Consolidated report

Unit: In NT$ million, Except Earnings (Loss) Per Share in NT$

Amount ％ Amount ％ Amount ％Operating Revenues 7,779 100.0% 11,000 100.0% (3,221) -29.3%Gross Profit 1,108 14.2% 2,476 22.5% (1,368) -55.3%Profit (Loss) from Operations (670) -8.6% 271 2.5% (941) 347.2%Non-operating income (expenses) 157 2.0% (138) -1.3% 295 213.8%Profit (Loss) before Income Tax (513) -6.6% 133 1.2% (646) 485.7%Net Profit (Loss) for the Year (397) -5.1% 90 0.8% (487) 541.1%Net Profit (Loss) Attributable to Shareholdersof the Parent (347) -4.5% 59 0.5% (406) 688.1%

Basic Earning (Loss) Per Share (1.36) 0.23 (1.59)

Item 2020Y 2019Y YoY


Key Consolidated Balance Sheet Items & Indices

Data Source:2020 Audited Consolidated report

Unit: In NT$ million, except Net Asset Value per Share in NT$

Amount ％ Amount ％ Amount ％Cash and cash equivalents 1,703 11% 1,090 6% 613 56%Notes and accounts receivable 3,226 20% 3,881 23% (655) -17%Inventories 5,016 31% 5,607 33% (591) -11%Total current assets 10,962 68% 11,849 70% (887) -7%Property, plant and equipment 3,323 21% 3,341 20% (18) -1%Total Assets 16,009 100% 16,922 100% (913) -5%

Short-term loans and bills payable 2,818 18% 3,241 19% (423) -13%Long-term liabilities - current portion 1,889 12% 1,041 6% 848 81%Notes and accounts payable 1,487 9% 1,666 10% (179) -11%Total current liabilities 8,476 53% 7,954 47% 522 7%Long-term bank loans 1,321 8% 2,214 13% (893) -40%Total Liabilities 10,548 66% 10,930 65% (382) -3%

Equity attributable to shareholders of the parent 4,883 31% 5,285 31% (402) -8%Total Equity 5,461 34% 5,992 35% (531) -9%

Net Asset Value per Share 19.16 20.74

Current ratio 129% 149%

Debt to Equity ratio 193% 182%

Item2020.12.31 2019.12.31 YoY Change


143

111

7%

5%

0%

10%

20%

30%

40%

50%

- 20 40 60 80

100 120 140 160

2020Q1 2021Q1

Aerospace

67

104 3%

5%

0%

10%

20%

30%

40%

50%

-

20

40

60

80

100

120

2020Q1 2021Q1

Wheel

248

340

13% 17%

0%

10%

20%

30%

40%

50%

- 50

100 150 200 250 300 350 400

2020Q1 2021Q1

ICT

638

555

32%

27.2%

24%25%26%27%28%29%30%31%32%33%

500 520 540 560 580 600 620 640 660

2020Q1 2021Q1

Automotive

Unit： NTD million/ % of revenue

Consolidated Revenue by ApplicationUnit：% of revenue

Data Source: Summarized by Tongtai GAO

2021Y Q1

$YoY(-13%)

Automotive27%

Others19%

ICT17%

Aerospace8%

Job shop7%

Agency5%

Maintenance5%

Wheel4%

Industrial machinery3%

Motorcycle3%

Electronic2%

$YoY+37%

$YoY+55%

$YoY(-22%)


Consolidated Revenue by Product and by Geography

Data Source: Summarized by Tongtai GAO

Unit：% of revenue

2020Y Q12021Y Q1

By Geography 2020Y Q1

By Product

2021Y Q1

Taiwan14%

China53%

Asia13%

North America

5%

Europe15%

Taiwan20%

China29%

Asia18%

North America

6%

Europe27%

Special Purpose

Machine, 11%

CNC Lathe, 20%

Machining Center, 33%

PCB Processing

Machine, 13%

Repairs & Service , 12%

Component manufacturer,

10%

Special Purpose

Machine, 9%

CNC Lathe, 19%

Machining Center, 40%

PCB Processing

Machine, 18%

Repairs & Service , 9%

Component manufacturer

, 6%


3 Brief strategies in the key industries


Summary in the EV market

After three years of development, Anger Machining GmbH, the Austrian member of TTGroup, has successfully developed the specialized equipment in battery tray machining.

For branded EV manufacturers in Europe & US, such as Tesla and other manufacturers, their tier1 supply chains have already introduced our machines in parts machining.

With the strategic alliance in the MIH EV Open Platform, we are looking forward to exploring potential customers in the expanding markets.

Tongtai is getting ready for EV’slightweight parts machining


Gas vehicle Electric vehicle

Powertrain system Transmission system Engine system

Structure parts Accessories

Car body

Chassis system Steering system Suspension system Brake system Wheel

Drive system Control system Battery system

Battery, motor and electric control system

Electric system Sensor module Car camera module ECU 5G communication module

Chassis system Steering system Suspension system Brake system Drivetrain system Wheel


Batteryprofile

Anger-MachiningSP2

Rib

TongtaiVP-8

Battery tray

PCI-SCEMMTS 3000V-W

Control box

TongtaiTMV-850QII

Batterytray

Anger-MachiningSP2

Lowercover

TongtaiTMV-1500A+4TH

Battery system

Differential

TongtaiTVL-40、DC-350

Motor Housing

TongtaiTMV-920A

Othercomponents

TongtaiEZ-5+4TH

Drive system

Control system

(EV)(hybrid)

Battery, motor and electric control system


Automotive Printed circuit board

Audio/Video System

TongtaiSD-6 SeriesTRM Series

GPSModule


Control system

Control Panel


Lighting system

Control panel


Engine control module


Transformation System


Door Switch Module


LCD Display Module



Case - lighting control panel

Drilling process

The process of laser drilling machine

Mechanical forming processForming process

The process of drilling machine


東台精機股份有限公司Tongtai Machine & Tool Co., Ltd. - 4526.TW

Thank You!Tel: +886-7-9761588

E-mail: [email protected]

www.tongtai.com.tw

Contact Us

Documents

Tongtai Machine & Tool Co., Ltd