Power Wind Health Industry Incorporated · TWSE:8462
Power Wind Health Industry — Investor Presentation (November 2022)
44 slides from Power Wind Health Industry's investor presentation, Nov 23, 2022
Slide 1: Power Wind Health Industry Incorporated
Power Wind Health Industry Incorporated Presenter: Alex Miao, Vice President & CFO Taiwan Leading Brand November 23, 2022 1st Listed Fitness Center Stock Code 8462.TW in Sports & Fitness
Slide 2: Outline
Outline I. Company Introduction 02 II. Current Industry Conditions & Status of Power Wind 14 III. Operating Performance and Glories of Power Wind 21 IV. Operating Prospects 28 V. Conclusion 37 VI. Appendix – Financial Information 39 1
Slide 3: I. Company Introduction
I. Company Introduction 1. Company Profile 2. Company History 3. Business Brands 4. Service Locations 5. Breakdown of Operating Revenues 6. Shareholders Composition 7. Board Members 8. Management Team 2
Slide 4: 1. Company Profile
1. Company Profile Power Wind Health Industry Incorporated Date of Establishment ⚫ Operate membership-based fitness center chains and October 4, 2005 recreational venues ⚫ Provide members with “premium sports venues,” “top- Industry notch fitness equipment,” and “innovative training Tourism Industry
Slide 5: 2. Company History
2. Company History 2005 2006 2007 2008 2013 2014 2015 2016 ⚫ Power ⚫ The 1st ⚫ The 1st venue, Fitness ⚫ The 2nd venue, ⚫ “Fitness Factory” was ⚫ IPO on ⚫ The 4th business ⚫ Officially a TPEx listed Wind was business Factory Boai, was Fitness Factory awarded 2013 Most July 16 brand Crazy Jump company
Slide 6: 3. Business Brands
3. Business Brands As of November 15, 2022 Brand Name Fitness Factory S klub Crazy Jump Let’s Roll Body Workshop KILL ZONE Brand Logo Year of 2006 2017 2015 2016 2007 2020 Establishment Professional services Professional Business Simulative of fitness and physical fitness Trampoline park Bowling Aro
Slide 7: 4. Service Locations
4. Service Locations Taipei 4 sites: Xinyi, Jiankang, Shipai, Changchun New Taipei 13 sites: Sanchung, Xinchuang, Chunghe, Tamsui, Banqiao, Xindian, Tucheng, Xizhi, Xinpu, Yonghe, Longan, Luzhou, Linkou Taoyuan 5 sites: Chungli, Dayou, Fuxin, Jingguo, Nankan Hsinchu 5 sites: Chube, Nanya, Gong Dao F
Slide 8: 5. Breakdown of Operating Revenues
5. Breakdown of Operating Revenues Unit: NT$ Thousand Item of Consolidated Revenues / Period 2020 2021 As of 2022 Q3 Fitness and recreational sports services (Monthly fees) 2,232,095 1,527,548 1,492,559 Sports health services (Personal training courses) 1,287,031 980,977 1,034,163 Joining fees (Init
Slide 9: 6. Shareholders Composition
6. Shareholders Composition As of July 5, 2022 Directors and Other related party 45% shareholders 41% Foreign investors 1% Domestic juristic Employees 3% persons 10% 8
Slide 10: 7. Board Members
7. Board Members Shareholding (July 5, 2022) Current duties in the Company Title Name Main experience & education background Shares % and other companies ■Dept. of Chemical Engineering, UC Berkeley, U.S.A. ■CEO of the Company Chairman George Chen 4,220,895 5.45% ■CEO, Power Wind Health Industry Inco
Slide 11: 7. Board Members (Cont.)
7. Board Members (Cont.) Shareholding (July 5, 2022) Current duties in the Company Title Name Main experience & education background Shares % and other companies ■Doctor of Management, Webster University, U.S.A. ■Master of Public Administration, University of Southern California, U.S.A. ■Master of B
Slide 12: 8. Management Team
8. Management Team Shareholding (July 5, 2022) Current duties in the Company Title Name Main experience & education background Shares % and other companies ■Dept. of Chemical Engineering, UC Berkeley, U.S.A. Chairman George ■CEO, Power Wind Health Industry Incorporated ■Chairman, Bo Xin Health 4,220
Slide 13: 8. Management Team (Cont.)
8. Management Team (Cont.) Shareholding (July 5, 2022) Current duties in the Company Title Name Main experience & education background Shares % and other companies ■EMBA of College of Management, National Sun Yat-Sen Executive vice University president, Fitness ■Director, Trainer division, Power Win
Slide 14: 8. Management Team (Cont.)
8. Management Team (Cont.) Shareholding (July 5, 2022) Current duties in the Company Title Name Main experience & education background Shares % and other companies ■Dept. of Banking and Insurance, Tatung Institute of Vice president, Technology Dept. of Physical Nick Chu 51,083 0.07% ■Regional manage
Slide 15: II. Current Industry Conditions & Status of Power Wind
II. Current Industry Conditions & Status of Power Wind 1. Upstream, Midstream, and Downstream Sectors of Sports Industry 2. Current Status of Fitness Industry in Taiwan 3. Fitness Market Size in Taiwan 4. Statistics of Exercising Population in Taiwan 5. Status of Power Wind 6. Competitors Analysis 1
Slide 16: 1. Upstream, Midstream, and Downstream Sectors of Sports Industry
1. Upstream, Midstream, and Downstream Sectors of Sports Industry Upstream Midstream Downstream sector sector sector ⚫ Manufacturing industry of ⚫ Industry of sport venue ⚫ General customers sports accessories or facilities Power Wind: ⚫ Members Johnson, Chi Hua, Dyaco, Membership-based fitness ⚫ Hi
Slide 17: 2. Current Status of Fitness Industry in Taiwan
Supply Demand 2. Current Status of Fitness Industry in Taiwan 1 1-Step: Supply 2-Step: Demand Creates Demand 2 Stimulates Supply Manufacturer of fitness Personal trainer Aerobics instructor equipment and sports accessories Upstream sector Cultivate a larger Civil sports center Fitness center chains
Slide 18: 3. Fitness Market size in Taiwan
3. Fitness Market size in Taiwan 1600 1,521 40.00 33.08 28.68 28.36 28.14 1400 26.49 30.00 1,298 20.62 1,235 1200 18.22 17.19 20.00 1,008 984 1000 872 10.00 787 817 800 728 32.79% 622 620 0.00 600 516 482 402 369 -10.00 400 302 299 225 200 149 168 -18.72 -20.00 0 -30.00 2013 2014 2015 2016 2017 2018
Slide 19: 4. Statistics of Exercising Population in Taiwan
4. Statistics of Exercising Population in Taiwan Unit: Thousand ppl.; % Statistics of People Engaging in Paid Fitness and Sports in Taiwan Analysis Item 2013 2014 2015 2016 2017 2018 2019 2020 2021 Number of registered residents aged 15 or over in 20,026 20,156 20,304 20,397 20,479 20,540 20,592 20,
Slide 20: 5. Status of Power Wind – Market Share
5. Status of Power Wind Market Share Estimated by Revenues % Estimated by People % Unit: NT$ Thousand Unit: ppl. Analysis Item Revenue Analysis Item People Consolidated revenues Rough number of members of Power Wind and 2,356,629 of Power Wind and Subsidiary 214,000 Subsidiary as of 2021 year-end Re
Slide 21: 6. Competitors Analysis
Data Source: Inquiry system of business registration info by M.E.A., each company’s website 6. Competitors Analysis As of November 15, 2022, data collected by Power Wind Brand Name Fitness Factory World Gym True Yoga．Fitness Extreme Fitness Center BEING sport / BEING fit Company Power Wind Health Tr
Slide 22: III. Operating Performance and Glories of Power Wind
III. Operating Performance and Glories of Power Wind 1. Operating Revenues 2. Operating Income 3. EBDA & EBITDA 4. Earnings Per Share 5. Number of Members & Operating sites 6. Glories of Power Wind 21
Slide 23: 1. Operating Revenues
1. Operating Revenues Unit: NT$ Thousand Operating 70.00% 4,000,000 Revenues as of 57.45% 60.00% 2022 Q3 YOY 3,500,000 46.88% 50.00% 40.40% 34.10% 32.42% 3,000,000 40.00% % 30.00% 20.00% 17.09% 2,500,000 2,000,000 10.00% 4.33% 0.00% 1,500,000 -10.00% 1,000,000 -20.00% -29.18% 500,000 -30.00% -40.00%
Slide 24: 2. Operating Income
2. Operating Income Unit: NT$ Thousand Operating 700,000 646,537 Income as of 600,000 551,966 551,368 2022 Q3 YOY 500,000 % 400,000 329,367 300,000 186,935 200,000 148,199 135,453 95,724 100,000 54,897 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 As of 2022 -100,000 Q3 -200,000 -193,028 -300,000 2
Slide 25: 3. EBDA & EBITDA
3. EBDA & EBITDA Unit: NT$ Thousand EBDA as of 1,600,000 2022 Q3 YOY 1,440,804 1,431,689 1,400,000 1,255,405 1,267,292 % 1,200,000 1,000,000 910,129 902,917 EBITDA as of 800,470 803,300 816,359 774,252 800,000 2022 Q3 YOY 617,739 600,000 551,933 % 412,500 400,000 297,853372,817 177,061 267,952 120,1
Slide 26: 4. Earnings Per Share
4. Earnings Per Share Unit: Thousand shares Unit: NT$ Dollar 80,000 74,485 10 74,449 70,747 70,000 7.69 65,763 8 6.01 57,714 5.67 60,000 7.15 6 4.34 3.96 50,000 3.86 45,502 3.19 4 38,782 40,000 30,000 2 30,000 22,806 0.93 0 20,000 15,429 -1.91 10,000 -2 0 -4 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 27: 5. Number of Members & Operating sites
5. Number of Members & Operating sites Number of Unit: People Unit: Institution Fitness Factory 240,000 70 221,000 members 220,000 208,000 214,000 200,000 61 60 as of Sep. 30, 200,000 57 178,000 50 2022 YOY 180,000 45 50 160,000 142,000 39 % 120,000 140,000 113,000 31 40 100,000 30 Number of 72,000
Slide 28: 6. Glories of Power Wind
6. Glories of Power Wind IHRSA recognized In 2018, ”Fitness Factory” obtained ”Fitness Factory” as the SGS QualiCert international service quality certificate, the most innovative fitness club which was the 1st fitness brand to in Asia-Pacific region in 2013 win this recognition in Taiwan and Asia r
Slide 29: IV. Operating Prospects
IV. Operating Prospects 1. Rapid Growth of Fitness Market in Taiwan 2. Membership Penetration Rate of Health Clubs in Asia-Pacific Countries 3. Statistics of Potential Workout Population in Taiwan 4. Statistics of Potential Fitness Market Size in Taiwan 5. Barriers to Entry 6. 2022 Distribution Plan
Slide 30: 1. Rapid Growth of Fitness Market in Taiwan
1. Rapid Growth of Fitness Market in Taiwan Unit: NT$ Thousand 40.00% 16,000,000 33.08% 28.36% 28.14% 28.68% 14,000,000 30.00% 26.49% 17.19% 12,000,000 20.00% 18.22% 20.62% 10,000,000 10.00% 8,000,000 0.00% 6,000,000 -10.00% 4,000,000 -20.00% -18.72% 2,000,000 -30.00% 0 2013 2014 2015 2016 2017 2018
Slide 31: 2. Membership Penetration Rate of Health Clubs in Asia-Pacific Countries
2. Membership Penetration Rate of Health Clubs in Asia-Pacific Countries Membership Penetration Rate of Health Clubs in Asia-Pacific Countries South Hong Mainland New Region Taiwan Singapore Japan China Australia Malaysia Philippines Thailand Vietnam Indonesia Korea Kong Zealand (Top 10 Cities) Sale
Slide 32: 3. Statistics of Potential Workout Population in Taiwan
3. Statistics of Potential Workout Population in Taiwan Number of People who Workout at Home in Taiwan Analysis Item People Number of registered residents aged 15 or over in Taiwan 20,485,406 ppl. as of December 31, 2021 Ratio of people engaging in regular exercise 80.2% (Note) Number of people enga
Slide 33: 4. Statistics of Potential Fitness Market Size in Taiwan
4. Statistics of Potential Fitness Market Size in Taiwan Taipei City, New Taipei City, Keelung City Population: 6,590,726 ppl. Potential workout population: 466,000 ppl. Taoyuan City, Hsinchu County & City, Miaoli County Potential market size of gyms: 112 Number of Fitness Factory: 17 Population: 3,
Slide 34: 5. Barriers to Entry
5. Barriers to Entry Brand Trust Laws & Regulations 1. Stricter terms of Standard form contract 2. Payment in advance trust Professional (prepaid membership + personal training courses) Talents 3. Legal operating of the venue 4. Indoor Air Quality Act High Capex 1. Large amount of investment 2. Long
Slide 35: 6. 2022 Distribution Plan
6. 2022 Distribution Plan New Taipei City Longan (Opened in May 2022) New Taipei City Luzhou (Opened in June 2022) New Taipei City Linkou (Opened in August 2022) New Taipei City Xike (Started to presell on Oct. 7, 2022) Taichung City Fuke (Opened in March 2022) Changhua County Jinma (Opened in Novem
Slide 36: 7. Future Development Strategies
7. Future Development Strategies Upstream Trainer / Aerobics instructor ◎ Integrate resources of personal trainers ◎ Intensify promotion of Deepen industry-academia collaboration, ”Physical Fitness Development Association” Strengthen campus recruitment, Promote contractual system Provide more profes
Slide 37: 8. ESG Promotion Plan
8. ESG Promotion Plan •Bilingual information ⚫ Adopt energy-saving devices disclosure in capital market and architectural designs ⚫ Implement paper-usage •Enhance information reduction policy transparency ⚫ Respond to Earth Hour｜60+ •Narrow the gap of information and turn off lights for an hour disc
Slide 38: V. Conclusion
V. Conclusion 1. View on Market / View on Business / Niche Point 37
Slide 39: 1. View on Market / View on Business / Niche Point
1. View on Market / View on Business / Niche Point View on Market View on Business 1. “Sport” is definitely good business! “Sport” is one of few important 1. In 2022, “Fitness Factory” plans to open 7 new operating sites. In 2023, industries, which arouses people’s passion in different countries and
Slide 40: VI. Appendix – Financial Information
VI. Appendix – Financial Information 1. Consolidated Balance Sheets for the Most Recent Five Years and the Last Period 2. Consolidated Statements of Comprehensive Income and with Ratios of Each Account to Revenue for the Most Recent Five Years and the Last Period 3. YoY Comparison of Consolidated St
Slide 41: 1. Consolidated Balance Sheets for the Most Recent Five Years and the Last Period
1. Consolidated Balance Sheets for the Most Recent Five Years and the Last Period Unit: NT$ Thousand Account / Year Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Sep. 30, 2022 Current assets 492,288 919,849 903,197 995,806 1,215,129 1,265,391 Cash and cash equivalents 339,442
Slide 42: 2. Consolidated Statements of Comprehensive Income
2. Consolidated Statements of Comprehensive Income and with Ratios of Each Account to Revenue for the Most Recent Five Years and the Last Period Unit: NT$ Thousand Account / Year 2017 2018 2019 2020 2021 As of 2022 Q3 Operating revenues 2,274,789 100.00% 3,012,163 100.00% 3,526,882 100.00% 3,679,560
Slide 43: 3. YoY Comparison of Consolidated Statements of Comprehensive Income
3. YoY Comparison of Consolidated Statements of Comprehensive Income for the Most Recent Year Unit: NT$ Thousand 2022 Q3 2022 Q2 2021 Q3 As of 2022 Q3 As of 2021 Q3 Account / Year Ratio to QOQ YOY Ratio to Ratio to YOY Amount Amount Amount Amount Amount Revenue Revenue Revenue Operating revenues 919
Slide 44: Power Wind Health Industry Inc. 8462.TW
FAC 8 Be SS SEA 19 BPR ZA) POWER WIND HEALTH INDUSTRY INC. BRR Ho: 8462.TW
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