(4572.tw) drewloong precision inc · 2018. 10. 18. · ams 2430 (northrop grumman) ams 2432...

(4572.TW)

Drewloong Precision Inc

Aug 2018 rev 6

Aero Structure Aircraft Engine Landing Gear

駐龍精密機械股份有限公司

Excellence in Global Aerospace Manufacturing!

Aerospace Market

Future of Air Travel Growth(RPKs)

Excellence in Global Aerospace Manufacturing!

For the next 20 years

Growth will be

2.8% ~ 6.2%

RPK = Revenue Passenger-kilometers

(Aerospace Market 1/3)SOURCE : BOEING 2018 CMO

Commercial Aircraft : Delivery and Backlog Order

Excellence in Global Aerospace Manufacturing!

462 477 601 648 723 762 748 763

5856

510 534 588 626 627 635 688 718

7168

0

1000

2000

3000

4000

5000

6000

7000

8000

2010 2011 2012 2013 2014 2015 2016 2017 Backlog

BOEING AIRBUS

(Aerospace Market 2/3)

Updated at June 2018SOURCE : BOEING,AIRBUS website

Single-Aisle A320 6,058

Wide-body

A330 307

A350 700

A380 103

Total 7,168

Single-Aisle 737 4,664

Wide-body

747 14

767 83

777 428

787 658

Total 5,856

7~10 YearsTo Consume Backlog(New PO Not Considered)

Production Rate/Mon. from 2018:B737 52 57 60 63A320 55 63 70 75

Commercial Market Outlook(2018 – 2037)

Excellence in Global Aerospace Manufacturing!SOURCE : BOEING 2018 CMO

DREWLOONG

(Aerospace Market 3/3)

70%Sales in

Single-Aisle(A320Neo&B737Max)

Fleet will double

Excellence in Global Aerospace Manufacturing!

DPI

Excellence in Global Aerospace Manufacturing!

300Employees

18years

Management

18.8MTurnover(2017)

30MInvestment

Since2001

10MCapital

Currency : USD

GLANCE AT DPI

DPI 1/30)

Excellence in Global Aerospace Manufacturing!

Taiwan, The Center of Asia-Pacific

efficient and excellent logistical support for air and sea transportation

TAIPEI

KAOHSIUNG

DPI to Kaohsiung Airport – 25 Mins.

Two Highway – 3.5 Hrs. from Kaohsiung to Taipei

DPI to HSR Station – 5 Mins. (90 Min. from Kaohsiung to Taipei)

DPI to Kaohsiung Port – 25 Mins.

LOCATION

DPI 2/30)

Excellence in Global Aerospace Manufacturing!

PLANT 1

5 MINUTES

Building 1NDTAnodizingPaintingLab

HeadquarterMachiningHydraulic FormingHeat TreatmentCMM Inspection

PLANT 2

Building 2MachiningCMM InspectionShot PeenAssembly

PLANTS

DPI 3/30)

Excellence in Global Aerospace Manufacturing!

2001

2002

2006

2007

2012

2013

2015

2016

2017

Completion of DPI Plant 1

Sheet Metal Capability Extension

Boeing Quality System Approval

Spirit AeroSystems Qualified Supplier

Completion of Plant 2 and surface treatment facility. Boeing Special Process Approval

Nadcap Accreditation for Chemical Process

Shot Peen Approval by Nadcap & Boeing. 2nd phase of Plant 2 completed

Expanding to SAFRAN AE & LS business

Passivation establishment

MILESTONE2018 Initial Public Offering

DPI 4/30)

ORGANIZATION

Excellence in Global Aerospace Manufacturing!

K.S. Wang

Chairman

BOARD

Y.C. Liao

Audit Office

Y.C. Lin

Safety & Health office

H.I. Chen

Vice President

Bench Work

Q.L. Chen

Machining

Bryan Wu

Engineering

Bryan Wu

Production

Control

H.S. Huang

Q.A

Alex Liu

Chemical

Process

C.P. Chen

Business

Alinsa Ho

Admin

C.F. Pan

Finance

Summer Li

DIRECT

230

INDIRECT

70

TOTAL

300

DPI 5/30)

CORE COMPETENCE

Excellence in Global Aerospace Manufacturing!

Aerospace Parts & Components

OthersSpecial Tooling

(Aerospace)

MANUFACTURE3/4/5 Axis CNC Machining, Hydraulic Forming

SPECIAL PROCESS Heat Treatment, Shot Peening, Anodizing, passivation, Non Destructive Test, Painting

ASSEMBLY

95% 2% 3%

STRUCTURE PARTSB737 B747 B767 B777 B787 A320Bombardier-Challenger 350

ENGINE PARTSB737MAX A320NEO

LANDING GEAR PARTSA350

DPI 6/30)

MATERIAL TYPE RATIO

Excellence in Global Aerospace Manufacturing!

Aluminum Titanium

Stainless Steel Others

Type Plate, Sheet, ExtrusionSource TMX,TKAPercentage 89%

Type PlateSource TIMET,VSMPOPercentage 8%

Type Plate, Sheet, BarSource AK SteelPercentage 1%

Type Nickel, NylonSource HAYNESPercentage 2%

Annual Spend :13% of Revenue

DPI 7/30)

GLOBAL MAJOR CUSTOMERS

Excellence in Global Aerospace Manufacturing!DPI 8/30)

MAJOR OPERATING PROGRAMS

Excellence in Global Aerospace Manufacturing!

AIRCRAFT SPIRIT SAFRAN EGAP AIDC SPEQTRUM ATLAS HM Dunn

737NG V V V V V

737MAX V V V V V V

747 V

767 V V

777 V V V

777X V

787 V V V V

A320 V

A320NEO V

A350 V

DPI 9/30)

INTEGRATED FULL FABRICATION SERVICE

Excellence in Global Aerospace Manufacturing!

MaterialProcurement

Forming/ Machining

Surface Treatment Shot Peening

Heat Treatment

Assembly NDT

Bench Work

DPI 10/30)

GLANCE AT EQUIPMENT

Excellence in Global Aerospace Manufacturing!

Chemical Process (130” x 50” x 40” )Shot Peen (120” x 75” x 15”) Automated Warehouse

CNC Forming (70” x 27.5”)

List (set)

3 Axis CNC 31

5 Axis CNC 8

Flex Forming 2

Hydraulic Press 5

Heat Treatment 1

NDT Line 1

Shot Peen 1

Chemical Process 2

Painting Line 1

CMM 3

Laser Tracker 1

Automated Warehouse 1

Laboratory 1

DPI 11/30)

EQUIPMENT SERVICE AREA

Excellence in Global Aerospace Manufacturing!DPI 12/30)

Nadcap Boeing Safran Other

3 Axis CNC 5300 mm * 2300 mm (208.6" * 90.5")

5 Axis CNC 4394 mm * 1828 mm (173" * 71.9")

Flex Forming1. ψ1010 mm *145 mm (ψ39.8" x 5.71" (H) )

2. 700 mm * 1800 mm

Hydraulic Press 3000*2000*1200 mm

CMM 1500*4000*1400mm

Heat Treatment

Heat Treat Furnace – 40” x 40” x 50”

Aging Oven – 59” x 59” x 58”

Cold Storage – 59” x 59” x 59”

AC7102

AC7102/2

AC7102/8

BAC5602AMS2770

AMS2750

NDT Line (L)3100 * (W)1200 * (H)900 mmAC7114

AC7114/1

BAC5423

BSS7039

NAS 410

PCS-3200

PR5000

HPTR0126

ASTM E1417(Northrop Grumman)

Shot Peen (L)6350 (Conveyor) * (W)2032 * (H)355 mmAC7117

AC7117/2BAC5730 PCS-2300

AMS 2430 (Northrop Grumman)

AMS 2432 (Northrop Grumman)

Chemical Process (L)1370 * (W)3510 * (H)1485 mm

AC7108

AC7108/8

AC7108/11

AC7108/12

BAC5022

BAC5019

BAC5632

BAC5719

BAC5625

DMP12-031

PCS-2220

MIL-A-8625

914-032-037 (UTC)

914-032-093 to 099 (UTC)

914-032-059/060 (UTC)

MIL-DTL-5541(Northrop Grumman)

AMS2700

Painting Line (L)1500 * (W)800 * (H)1200 mmAC7108

AC7108/1BAC5736

PCS-2530

PCS-2531HPTR0015

QualificationCategory

Capability - Maximum(Table size)

SPECIAL PROCESS QUALIFICATION

Excellence in Global Aerospace Manufacturing!

Process NADCAP MIL Standard BOEINGSAFRAN

LANDING SYSTEMS

SAFRAN NACELLE

STELIANORTHROP GRUMMAN

UTC Aerospace Systems

LOCKHEEDMARTIN

SIKORSKY

Heat Treatment (Aluminum) ✓ ✓ ✓

NDT-Penetrant Inspection (Aluminum)

✓ ✓ ✓ ✓ ✓ ✓

Sulfuric Acid Anodizing ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Chromic Acid Anodizing ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Boric Acid-Sulfuric Acid Anodizing

✓ ✓

Chemical Conversion Coating ✓ ✓ ✓ ✓ ✓ ✓ ✓

Passivation ✓ ✓

Shot Peening ✓ ✓ ✓ ✓ ✓

Painting ✓ ✓ ✓ ✓

DPI 13/30)

NADCAP CERTIFICATIONS

Excellence in Global Aerospace Manufacturing!DPI 14/30)

駐龍 : 全球航太供應鏈定位

Excellence in Global Aerospace Manufacturing!

DPI IN GLOBAL AEROSPACE SUPPLY CHAIN

(Revenue in USD M)

DPI 15/30)

OEM : AIRBUS(78,300)

BOEING(93,400)TIER-1 : AIDC (900)

EGAP (EVA GROUP)

MHI (34,800)

SPIRIT (7,000)

SAFRAN (19,800)TIER-2 : ATLAS

APEXSPEQTRUM

80%

20%

DPI PARTS BY SECTIONS

Excellence in Global Aerospace Manufacturing!

AERO STRUCTURE

4000P/N in B737 B747 B767 B777 B787

4P/N in A350

LANDING GEAR

DPI

Aero Structure

Aircraft Engine

Landing Gear

30P/N in LEAP-1A/1B(A320Neo/B737Max)

DPI 16/30)

A/C ENGINE

ENGINE PARTS

Excellence in Global Aerospace Manufacturing!

A320 neoB737 Max

Machining

NDT

Anodizing

Bonding

Aluminum

Titanium

30 P/N

4,244 ea

DPI 17/30)

SIDE STAY – LANDING GEAR

Excellence in Global Aerospace Manufacturing!

A350

Machining

NDT

Shot Peen

Anodizing

Painting

Assembly

Aluminum

4 P/N

219 ea

DPI 18/30)

STRUCTURE PARTS

Excellence in Global Aerospace Manufacturing!

7372,440P/N

414,872ea

747408P/N

2,187ea

767178P/N

1,566ea

777794P/N

49,808ea

787651P/N

54,735ea

DPI 19/30)

Excellence in Global Aerospace Manufacturing!

SHIPMENTS FROM DPI(pieces)

14%(CAGR)

Annual Increase

with

Good Management

Sheet Metal Parts 247,121 301,672 285,835 310,932 299,504 360,000

Machines Parts 76,488 89,760 101,463 103,038 218,136 235,000

Assembled Parts 16,109 20,440 30,713 44,410 52,518 60,000

Total 339,718 411,872 418,011 458,380 570,158 655,000

339,718

411,872 418,011

458,380

570,158

655,000

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2013 2014 2015 2016 2017 2018(F)

DPI 20/30)

AWARD FROM CUSTOMERS

Excellence in Global Aerospace Manufacturing!

The 2015 International Supplier of the Year - Spirit The 2016 Superior Quality & Delivery - Spirit

DPI 21/30)

Performance Partner of 2018

SPIRIT, 41%

AIDC, 20%

SAFRAN, 14%

SPEQTRUM, 6%

Atlas, 6%

EGAP, 5%

Other, 3%MHI, 3%

Elbit , 1%SPIRIT

AIDC

SAFRAN

SPEQTRUM

Atlas

EGAP

Other

MHI

Elbit

2017 REVENUE SOURCE DISTRIBUTION

Excellence in Global Aerospace Manufacturing!

$ 18,803,000

Currency : USD

DPI 22/30)

FUTURE OUTLOOK – Mid-term Growth Forecast

Excellence in Global Aerospace Manufacturing!

North America30%

Europe30%

Asia 30%

other10%

Target Market Share

North America Europe Asia other

DPI had positive growth for the past 5 years. Forecast of the growth for the next 5 to 6 years is expected to reach between 10 and 20%.

North America54%

Europe14%

Asia28%

Other4%

2017 Market Share

North America Europe Asia Other

DPI 23/30)

THINK AND ACT AHEAD

Excellence in Global Aerospace Manufacturing!

In 2015, expand in advance.In 2018, take rapid demand.Already runs 30% capacity.

DPI 24/30)

ADVANTAGES - Technical

Excellence in Global Aerospace Manufacturing!

One-Stop-ShopFrom purchasing to machining, forming, HT, NDT, Shot Peen, Anodizing, Assembly and Inspection. All processes are fully integrated and in-house.

Sheet MetalIn Taiwan, only 2 companies has such aerospace hydroforming equipment.

BOEING D1-4426In Taiwan, only 3 companies are listed in chemical processes approval vendor.

Special ProcessesChemical Process, Shot Peen, NDT Level III and Heat Treatment are all NADCAP & Boeing qualified. Able to take direct business with global major customers.

DPI 25/30)

ADVANTAGES - Financial

Excellence in Global Aerospace Manufacturing!

EPSFor past 5 years, EPS are higher than 5NTD, even the capital is increased from 150M to 300M.

Revenue2012-2017 CAGR 15.6%

NET PROFIT27%, the best in Taiwan listed aerospace companies.

BACKLOG ORDER5 years.

DPI 26/30)

Operating Status from 2013

Excellence in Global Aerospace Manufacturing!

Unit : NTD Thousands

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000

240,000

260,000

280,000

2013 2014 2015 2016 2017

Capital Unit : NTD (‘000)

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

2013 2014 2015 2016 2017

Revenue and Net ProfitRevenue Net Profit

Unit : NTD (‘000)

4.00

4.20

4.40

4.60

4.80

5.00

5.20

5.40

5.60

5.80

6.00

2013 2014 2015 2016 2017

Unit:NTDEPS

DPI 27/30)

Year 2013 2014 2015 2016 2017

Capital 150,000 175,000 215,000 260,000 260,000

Revenue 343,141 430,627 465,563 505,216 564,076

Net Profit 75,261 95,204 112,879 126,223 150,002

EPS 5.02 5.48 5.27 5.20 5.77

Revenue, GP% & NP%Unit : NTD Thousands

343,141

430,627 465,563

505,216

564,076

30.44% 29.24%

44.04% 45.17%48.19%

21.93% 22.11%24.25% 24.98% 26.59%

10%

20%

30%

40%

50%

60%

70%

0

100,000

200,000

300,000

400,000

500,000

600,000

2013 2014 2015 2016 2017

Revenue Gross Profit % Net Profit %

Excellence in Global Aerospace Manufacturing!DPI 28/30)

Operating Status in 2018

Excellence in Global Aerospace Manufacturing!

2017 2018

Jan~Sep Revenue

(USD Thousands)

Unit : NTD Thousands

39%YOY

Monthly 2017 2018 YOY

Sep 47,902 88,713 85.20%

Aug 57,348 86,993 51.69%

July 45,747 68,072 48.80%

June 59,145 67,976 14.93%

May 51,515 63,836 23.92%

Apr 43,358 62,863 44.99%

Mar 47,952 58,281 21.54%

Feb 39,778 49,157 23.58%

Jan 40,482 56,440 39.42%Total 433,227 602,331 39.03%

DPI 29/30)

Financial Ratio from 2013

Excellence in Global Aerospace Manufacturing!

Year 2013 2014 2015 2016 2017 2018H1

Current Ratio 392% 349% 361% 551% 629% 623%

Quick Ratio 247% 268% 253% 400% 460% 464%

Debt Asset ratio 21% 22% 28% 22% 25% 23%

ROE 20% 21% 19% 16% 16% 20%

200%

250%

300%

350%

400%

450%

500%

550%

600%

650%

2013 2014 2015 2016 2017 2018H1

Current Ratio Quick Ratio

DPI 30/30)

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

2013 2014 2015 2016 2017 2018H1

Debt Asset ratio ROE

Excellence in Global Aerospace Manufacturing!

Thanks.For more information, please contact:

Investors – Mike Lan, Corporate Spokesman +886 0932 165 225 Email: mikelan@drewloong.com.tw

Finance – Summer Li, Financial Manager +886 7 310 1000 Email: summer@drewloong.com.tw