nien made march stockcode:8464 · balance sheet summary nt$ mn 2015 2016 2017 2018 2019 yoy (%)...

March 2020

Nien MadeStock Code : 8464

Source : Nien Made

SmartDrapeTM

Shades2

MotorizationSystem

Source : Nien Made 3

P&L Summary

NT$ mn 2015 2016 2017 2018 2019YoY (%)

2016 2017 2018 2019

Sales Revenue 16,821 18,864 19,696 21,878 23,929 12.1% 4.4% 11.1% 9.4%

Gross Profit 7,466 9,142 9,463 9,884 12,150 22.5% 3.5% 4.4% 22.9%

Operating Profit 3,585 4,660 4,895 4,670 6,154 29.9% 5.0% -4.6% 31.8%

Income Before Tax 3,496 4,888 4,771 4,941 6,111 39.8% -2.4% 3.5% 23.7%

Net Income to Parent Shareholders 2,641 3,689 3,595 3,630 4,504 39.7% -2.5% 1.0% 24.1%

EPS (NT$)* 10.09 12.59 12.27 12.39 15.37

Gross Margin 44.4% 48.5% 48.0% 45.2% 50.8%

Operating Margin 21.3% 24.7% 24.8% 21.4% 25.7%

Net Margin** 15.7% 19.6% 18.3% 16.6% 18.8%

* 2015 EPS of NT$10.09 is derived from 2015 average shares. Based on year end share count (293mn), 2015 EPS would be NT$9.01. Historical EPS is retrospective/updated number.

** Net Margin % = Net Income (attributed to parent shareholders)／Sales Revenue. 4

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Balance Sheet Summary

NT$ mn 2015 2016 2017 2018 2019YoY (%)

2016 2017 2018 2019

TOTAL ASSETS 17,639 16,589 16,702 18,623 22,158 -6.0% 0.7% 11.5% 19.0%

Cash 5,989 4,274 4,258 4,573 7,474 -28.6% -0.4% 7.4% 63.4%

NR & AR 2,037 2,258 2,301 3,027 2,460 10.8% 1.9% 31.5% -18.7%

Inventory 2,739 2,893 3,150 3,565 3,354 5.6% 8.9% 13.2% -5.9%

Fixed Asset 4,796 4,761 4,759 5,060 6,197 -0.7% 0.0% 6.3% 22.5%

TOTAL LIABILITIES* 6,659 4,896 4,604 5,895 8,204 -26.5% -5.9% 28.0% 39.2%

Loan 2,315 0 0 790 2,583 -100.0% n.a. n.a. 227.0%

NP & AP 807 828 735 832 718 2.6% -11.2% 13.1% -13.7%

TOTAL EQUITY 10,980 11,693 12,098 12,727 13,953 6.5% 3.5% 5.2% 9.6%

A/R turnover days 39 42 42 44 42

Inventory turnover days 106 106 108 102 107

A/P turnover days 32 31 28 24 24 5

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7% 10% 7% 6% 5% 4% 4%

74%

48%42% 40% 39% 41% 41%

19%

42%51% 54% 56% 55% 55%

0%

50%

100%

2004 2011 2015 2016 2017 2018 20190

3,000

6,000

9,000

12,000

15,000

2013 2014 2015 2016 2017 2018 2019

(NT$mn)

Historical SalesCustom-Made Window Coverings

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BreakdownNien Made’s Sales

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American Sales YoY (%) European Sales YoY (%)

Sales YoY (%) Sales by Region (%)

1,186 1,260 1,5402,059 2,367

2,8203,200

3,7104,392

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

(NT$mn)+19.2%

Sales CAGR (2014-2018)

+18.4% YoY (2019)

6,650 7,927 9,30110,716

13,31214,910 15,494

17,227 18,507

0

4,000

8,000

12,000

16,000

20,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

(NT$mn)+13.1%

Sales CAGR (2014-2018)

+7.4% YoY (2019)

9,218 10,595 12,123 13,85916,821 18,864 19,696

21,878 23,929

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

(NT$mn)

+12.5%Sales CAGR (2014-2018)

+9.4% YoY(2019)

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79% 79% 79% 77%

15% 16% 17% 18%

6% 5% 4% 5%

0%

50%

100%

2016 2017 2018 2019

America Europe Asia/Others

Shandong

Guangdong

Cambodia

Wood Shutters & Blinds

Parts & Wood Products

Ready- Made Blinds

Shades

Ready- Made Blinds

Dallas, Texas

Blinds & Shades(Light Assembly Factory)

Shutters & Faux Wood Blinds

Mexican Custom-Made CapacityPilot run in 2020Q2

Mexico

8

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Norman Mexico500 Workers (2020)Shutters & Faux Wood BlindsBenefits of Shorter Lead Time & Freight Cost Reduction

9

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Norman Australia3D Showroom Tour (Online)

10

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https://my.matterport.com/show/?m=DRVpivqHFmC

Exhibition for Hospitality, Food service

Catering industriesJapan

11

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Developing small independent channels in 19 years

11 subsidiaries (Regional Business Center, RBCs)

200+programs/road shows (Certification of Dealers/Designers annually)

483 staffs in US4,500+ effective accounts (Dealers/Designers/Specialty Stores)

D

RBC (Regional Business Center)

DealersDesigners

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National AccountIntroducing Simplified Custom-Made Assortments

13http://www.venetawindowfashions.com/

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873 975 1,118 1,051 1,138

7,189 6,791 6,635 6,642 5,718

1,586 2,473 3,226 3,807 4,257

9,64810,239

10,97911,500 11,113

2015 2016 2017 2018 2019

Cambodian Ready-Made CapacityContinuous Expansion

Unit: Person

Cambodia

China

Others

Total

14

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Myanmar Ready-Made CapacityStart Construction in Late 2020

YangonMyanmar

15

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Ready-Made(OEM)

1974- 2000

Custom-Made(OBM)

Ready-Made(ODM)

2001 - now

Shutters2001 - now

BlindsShades

2011 - now

Ready-Made

Since19 46

Years74

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Global Market SizeEst. US$11bn

US Custom-Made Market SizeEst. US$4.5+bn

Global WindowTreatmentsMarket

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DealersDesigners

Small specialty storesChannel Big Box Retailers

(Home Depot, Walmart)

Less sensitive Price Sensitivityof Users Sensitive

Local fabricatorsHunter Douglas

Springs Window FashionsMajor Players

Local makers in ChinaSprings Window Fashions

LEVOLOR

Ready-MadeWindow Coverings

Custom-MadeWindow Coverings

Channel WindowTreatmentsBrief

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Blinds and Shades

Cellular Shades

Blinds

Roller Shades

Other Window Coverings

NM’s market share

US$1,000|

US$300

US$100|

US$10 Blinds and Shades

Quantities of Window Coverings

Shutters

Motorization Shutters

North WindowTreatmentsAmerica

Retailing Price/Window

Custom-Made

Ready-Made

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NEW

NEW

SmartDrapeTM ShadesPerfectSheerTM Shades

NEW

US$700|

US$200

Highly IntegratedVertically

Parts Produced In-HouseMetal parts: 70+% Injection plastic parts: 90+%Pull cords & corrugated board/boxes: 100%

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From To Finished Shutters Logs

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15 LeanProductionYears

Continuous Improvement2,000+ proposals made by employees annually

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Name Position Description of responsibility Experience Education Profile

Howard Nien Chairman & CEO

Setting/ implementing the organization‘s vision/ operating decisions.

20 ￭ L.L.M. - Southern Methodist University, US

Benson Pong Executive Vice President

Planning and implementation of the Toyota Production System (TPS) through out the entire organization.

43 ￭ B.S. - Hsiuping University of Science and Technology

Michael Nien Vice President

Developing business for Big-box stores/retailers. Responsibilities include: product R&D, operation, sales marketing and strategies.

19

￭ M.B.A. - Boston University, US

￭ B.S. - Electrical engineering, National Taiwan University, Taiwan

Ken Chuang Vice President Establishment and ongoing development of the entire Cambodian operation.

37 ￭ B.S. - National Chung Hsin University, Taiwan

Ron Nien Vice President Responsible for developing the Japanese market. 15

￭ M.B.A. - Kellogg School of Management, Northwestern University

￭ M.E.M (Master of Engineering Management) -Northwestern University

Edward Jok CFO

Responsible for finance operations, profit/costanalysis, forecasting needs and the securing of new funding.

32

￭ M.B.A. - University of British Columbia

￭ B.S. - University of California Berkeley, Computer Science

Ranjan Mada President-USOverseeing the complete operation for the American Custom-made sector.

40 ￭ M.B.A. - University of Western Ontario, Canada

Dr. Harjit Singh President-USOverseeing the complete operation of the Sales & Marketing for the Big-box / large chain sectors.

32

￭ Ph.D. - Strategic Management, University of Tennessee

￭M.B.A. - University of South Carolina

IR Calendar2019

Financials Mar 2020

1Q20Financials May 2020

Investor Meeting 2020H1

2Q20Financials Aug 2020

Investor Meeting 2020H2

3Q20Financials Nov 2020

About The LeadershipNM

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THEEND