Thai Optical Group Public Co. Ltd. · SET:TOG
Thai Optical Group Public — Q2 2023 Earnings Presentation
25 slides from Thai Optical Group Public's earnings presentation, Sep 1, 2023
Slide 1: Opportunity Day Q2/2023
OPPORTUNITY DAY Q2/2023 September 1st , 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 821 751 711 663 676 643 654 618 576 572 549 537 531 547 454 455 450 201 217 175 163 177 139 222 141 141 149 138 106 111 126 65 64 69 53 63 25 13 38 21 21 109 116 103 113 117 80 14 (6) 96 5176 76 Q1/19 Q2/19 Q3/1
Slide 10: QOQ Financial Performance
QOQ Financial Performance Unit: THB million 676 654 572 454 149 163 175 222 65 (6) 117 14 87 109 Q2/19 Q2/20 (53) Q2/21 Q2/22 Q2/23 Sales Gross Profit Net Profit 10
Slide 11: Q2/2023 Results (Consolidated)
Q2/2023 Results Q1/23 RESULTS (Consolidated) (CONSOLIDATED) Unit: THB million Q2/22 Growth Q2/23 Revenue from sales and services 676 -3.2% 654 163 175 Gross profits 7.3% 24.2% 26.8% 109 117 Net Income 7.1% 16.1% 17.9% 119 134 EBIT 12.9% 17.6% 20.6% 165 176 EBITDA 7.0% 24.3% 26.9% 11
Slide 12: Q2/2023 Revenue Growth In EU & NA
Q2/2023 Revenue Growth In EU & NA Unit: THB million Europe 749 667 Asia Pacific North America 180 157 168 469 507 440 573 98 127 120 117 124 159 2021 2022 Q2/21 Q2/22 Q2/23 2021 2022 Q2/21 Q2/22 Q2/23 2021 2022 Q2/21 Q2/22 Q2/23 Middle East and Africa Australia and New Zealand 51 67 995 20 731 13 16
Slide 13: Q2/2023 Revenue Growth In EU & NA
Q2/2023 Revenue Growth In EU & NA 19% 20% 21% 19% 21% 22% 20% 20% 22% North America 24% Asia/Africa 31% 34% 29% 39% 29% ANZ Europe 28% 26% 31% 26% 24% 2021 2022 Q2/21 Q2/22 Q2/23 13
Slide 14: Q2/2023 Rx Driven By ANZ, NA And Asia Markets
Q2/2023 Rx Driven By ANZ, NA And Asia Markets 8% 9% 6% 9% 9% 29% 35% 35% 38% 40% High value-added Others 20-30% margin Rx 35% 29% 28% Value-added 28% 27% Standard Low value-added 10-20% margin 29% 28% 30% 25% 24% 2021 2022 Q2/21 Q2/22 Q2/23 14
Slide 15: Q2/2023 Mirror steady growth and stability
Q2/2023 Mirror steady growth and stability Exchange Rate Q2/23 = 34 THB/USD 676 654 61 60 $1.8 mil $1.8 mil 256 Others • Expansion of customer base across all regions. 262 $7.5 mil Rx $7.7 mil Value-added 188 • Consumers' spending tends to tighten their belt. 174 Standard $5.5 mil $5.1 mil • Continu
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. • Install 1.9-MegaWatt Solar Photo Voltaic Rooftop at TOG to mitigate rising electricity costs and GHG-Gree
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 Business Update
2023 Business Update NEW PRODUCT LAUNCHED IN 2023 20
Slide 21: 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 22: Agenda
AGENDA • Corporate & Business Overview • Financial Performance • Growth Drivers & Outlooks • ESG 22
Slide 23: 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. 23
Slide 24: '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 25: 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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