Thai Optical Group Public Co. Ltd. · SET:TOG
Thai Optical Group Public — Q3 2023 Earnings Presentation
26 slides from Thai Optical Group Public's earnings presentation, Dec 22, 2023
Slide 1: Opportunity Day Q3/2023
OPPORTUNITY DAY Q3/2023 December 22nd , 2023
Slide 2: Disclaimer
DISCLAIMER The following presentation may contain forward looking statements by the Management Team of Thai Optical Group Public Company Limited (the Company), related to financial or other tendency for future periods, compared with the results for previous periods. Some of the statements contained
Slide 3: Agenda
AGENDA • Corporate & Business Overview • Financial Performance • Growth Drivers & Outlooks • ESG 3
Slide 4: Agenda
AGENDA • Corporate & Business Overview • Financial Performance • Growth Drivers & Outlooks • ESG 4
Slide 5: Corporate Overview
Corporate Overview TOG is a spectacle lens manufacturer with strong track record 60-year history. We serve business customers both in Thailand and internationally, across 50 countries, over 6 continents. Associated Company Vina Vista, Vietnam 5
Slide 6: TOG Mission and Dividend Policy
TOG Mission We intend to become a leading, sustainable, independent manufacturer with a global reputation for: • Consistent service excellence • Ease of doing business • Supplying the best value on time every time TOG Dividend Policy Not less than 40% of its consolidated net profit after deduction o
Slide 7: Business Overview
Business Overview TOG offers a wide variety of lens materials designed to correct refractive errors, causing impaired vision both near- and far-sightedness, astigmatism and presbyopia. Lens Uncut Blank Lenses (1) (2) Standard Lenses Value-Added Lenses Prescription Lenses Other Products & (1),(2) (1)
Slide 8: Agenda
AGENDA • Corporate & Business Overview • Financial Performance • Growth Drivers & Outlooks • ESG 8
Slide 9: Historical Financial Summary (Quarterly)
Historical Financial Summary (Quarterly) Unit: THB million Sales Gross Profit Net Profit 821 773 751 711 663 676 643 654 618 576 572 549 537 531 547 454 455 450 175 201 217 163 177 173 139 222 141 141 149 138 106 111 126 65 64 69 53 63 21 51 116 80 14 25 13 38 (6) 21 109 103 113 117 106 96 76 76 Q2/
Slide 10: QOQ Financial Performance
QOQ Financial Performance Unit: THB million 751 773 531 547 455 177 173 53 111 64 25 21 116 106 51 Q3/19 Q3/20 Q3/21 Q3/22 Q3/23 Sales Gross Profit Net Profit 10
Slide 11: Q3/2023 Results (Consolidated)
Q3/2023 Results Q1/23 RESULTS (Consolidated) (CONSOLIDATED) Unit: THB million Q3/22 Growth Q3/23 Revenue from sales and services 751 2.9% 773 177 173 Gross profits -2.1% 23.6% 22.4% 116 106 Net Income -8.0% 15.4% 13.8% 123 132 EBIT 7.4% 16.3% 17.0% 168 173 EBITDA 3.4% 22.4% 22.5% 11
Slide 12: Q3/2023 Strong Revenue Growth in NA
Q3/2023 Strong Revenue Growth in NA Unit: THB million Europe 749 667 Asia Pacific North America 162 214 170 469 507 440 573 93 126 151 134 139 218 2021 2022 Q3/21 Q3/22 Q3/23 2021 2022 Q3/21 Q3/22 Q3/23 2021 2022 Q3/21 Q3/22 Q3/23 Middle East and Africa Australia and New Zealand 51 67 995 28 731 11
Slide 13: Q3/2023 Strong Revenue Growth in NA
Q3/2023 Strong Revenue Growth in NA 19% 20% 24.5% 18.5% 28.2% 22% 20% 19.2% North America 19.0% 23.2% Asia/Africa 31% 34% 26.9% 33.8% ANZ 26.6% Europe 28% 26% 29.6% 28.5% 22.0% 2021 2022 Q3/21 Q3/22 Q3/23 13
Slide 14: Q3/2023 Driven by Rx & Value-added
Q3/2023 Driven by Rx & Value-added 8% 9% 6.0% 8.8% 7.8% 27.1% 35% 35% 34.6% 37.5% High value-added Others 20-30% margin Rx 39.7% 29% 28% 26.4% Value-added 30.1% Standard Low value-added 10-20% margin 29% 28% 27.2% 30.2% 24.5% 2021 2022 Q3/21 Q3/22 Q3/23 14
Slide 15: Q3/2023 Mirror steady growth and stability
Q3/2023 Mirror steady growth and stability Exchange Rate Q3/23 = 35 THB/USD 773 751 61 66 $1.7 mil $1.9 mil 260 • Expansion of customer base across all regions 290 Others $7.4 mil Rx $8.3 mil • Orders for value-added lenses increase in direct correlation Value-added 198 233 with RX lens sales. $5.7
Slide 16: Agenda
AGENDA • Corporate & Business Overview • Financial Performance • Growth Drivers & Outlooks • ESG 16
Slide 17: 2023 Growth Drivers
2023 Growth Drivers • Expand customer base across all regions. • Accelerate responsive supply, with variety of products, via distribution centers in the US and in Europe. • Deploy automated operation and data systems, with lean principles, to increase efficiency and capacity. • Expand Prescription L
Slide 18: 2023 Outlooks
2023 Outlooks Efficiency Maximization • Accelerate efficiency maximization to mitigate the impact of increasing production costs from raw materials and the potential raise in the minimum wage. • Utilization of 1.9-MegaWatt Solar Photo Voltaic Rooftop at TOG to mitigate rising electricity costs and G
Slide 19: 2023 Outlooks
2023 Outlooks Production Capacity Expansion • Increase the capacity headroom of Prescription Lenses (Rx) by 30% to accommodate potential business growth. 19
Slide 20: 2023 Outlooks
2023 Outlooks TOG is listed as Asia’s Best Under A Billion 2023. • Thai Optical Group; TOG selected as one of the Thai public companies listed in Asia's Best Under A Billion 2023 that outperformed despite stiff global headwinds like inflation and rising funding costs. 20
Slide 21: 2023 Business Update
2023 Business Update NEW PRODUCT LAUNCHED IN 2023 21
Slide 22: 2023 Business Update
2023 Business Update Divestment of MVISION Singapore In 2010, TOG acquired a 33% stake in an associated company namely, MVISION OPTICAL PTE. LTD., Singapore (“MVISION Singapore”), a manufacturer and distributor of prescription lenses (Rx lenses). On 9 August 2023, TOG’ board had approved the resolut
Slide 23: Agenda
AGENDA • Corporate & Business Overview • Financial Performance • Growth Drivers & Outlooks • ESG 23
Slide 24: Sustainable Development
Sustainable Development At TOG, we 'Craft with Care' and help people around the world lead healthier and more fulfilling lives, through the power of sight. Healthier Living is foundation of sustainability for all; employees, partners, customers, consumers, communities and environment. 24
Slide 25: 'Craft with Care'
'Craft with Care' • Caring for Environment: Responsibly, efficiently utilize resources. Dispose waste properly. Minimize environmental impact. • Caring for People: Build strong lasting relationships among people for responsible practices. • Caring for Performance: Strive for continual efficiency imp
Slide 26: Thai Optical Group Pcl.
Thai Optical Group Pcl. Head Office THAI OPTICAL GROUP PCL. 15/5 MooHead 6 Bangbuathong-Suphanburi Office Road, 15/5 Moo 6 Bangbuathong-Suphanburi Rd. Laharn Laharn Sub-district, Bangbuathong Bangbuathong, Nonthaburi, Thailand District, 11110 Tel: (+66) 02 194 1145 to 1146 Nonthaburi Province 11110
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