K Laser Technology, Inc. · TWSE:2461
K Laser Technology — Q4 2019 Earnings Presentation
28 slides from K Laser Technology's earnings presentation, January 2020
Slide 1: 2019 9M & Q4 Investor Conference
K Laser Technology Inc.(2461) 2019 9M & Q4 Investor Conference 2020/01 1
Slide 2: Disclaimer
Disclaimer • The information contained in this confidential document ("Presentation") has been prepared by K LASER (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. • While the information contained herein has been prepared in good f
Slide 3: 4Q19 Revenue
4Q19 Revenue •Consolidated: Decreased 5.5% in 4Q19 versus 4Q18 to NT$1,335 mn (majorly Core & EDI) •Core: Decreased 3.8% in 4Q19 versus 4Q18 to NT$854 mn (majorly from KLJP & KLWX & KLDG) Consolidated Core -5.5% YoY -3.8% YoY 1,413 1,335 888 854 4Q18 4Q19 4Q18 4Q19 Revenue NT$ million Revenue NT$ mi
Slide 4: Y2019 Revenue
Y2019 Revenue •Consolidate: Decreased 0.0% in Y2019 versus Y2018 to NT$5,201 mn •Core(note):Increased 3.4% in Y2019 versus Y2018 to NT$3,506 mn(majorly from KLUS and He-Rui Laser) Consolidated Core -0.0% YoY +3.4% YoY 5,202 5,201 3,391 3,506 Y2018 Y2019 Y2018 Y2019 Revenue NT$ million Revenue NT$ mi
Slide 5: 2019 9M Result
2019 9M Result 5
Slide 6: 2019 9M Highlight
2019 9M Highlight •Consolidate: Increased 2.0% in 9M 19 versus 9M 18 to NT$3,865 mn Revenue •Core(note):Increased 5.9% in 9M 19 versus 9M 18 to NT$2,652 mn Gross •Consolidated: Increased 2.2% in 9M 19 versus 9M 18 to 23.5% Margin •Core: Increased 2.1% in 9M 19 versus 9M 18 to 29.3% Operating •Consol
Slide 7: 9M 19 Revenue
9M 19 Revenue •Consolidate: Increased 2.0% in 9M 19 versus 9M 18 to NT$3,865 mn •Core(note):Increased 5.9% in 9M 19 versus 9M 18 to NT$2,652 mn(majorly from KLUS and He-Rui Laser) Consolidated Core +2.0% YoY +5.9% YoY 3,790 3,865 2,503 2,652 9M18 9M19 9M18 9M19 Revenue NT$ million Revenue NT$ millio
Slide 8: Hologram sales mix by customer industry
Hologram sales mix by customer industry Other Consumer Tobacco & Alcohol 15% 17% 17% 18% 19% 21% 23% 26% 28% 27% 31% 35% 27% 25% 32% 23% 57% 52% 55% 54% 54% 51% 45% 48% 2012 2013 2014 2015 2016* 2017* 2018* 9M19* Note: Other includes anti-counterfeit product, decorations, materials…etc * China subsi
Slide 9: 9M19 Gross Margin
9M19 Gross Margin •Consolidated: Increased 2.2% in 9M 19 versus 9M 18 to 23.5% • Core: Increased 2.1% in 9M 19 versus 9M 18 to 29.3 Gross Margin Consolidated Core TSL as % of Revenue % as Consolidated % as Core 29.3% 31.7% 32.2% 30.5% 27.2% 29.1% 23.5% 26.8% 21.2% 24.7% 24.9% 908 805 778 681 15.3% 1
Slide 10: 9M19 Operating Expense
9M19 Operating Expense •Consolidated: Increased 1.5% in 9M 19 versus 9M 18 to 19.8% • Core: decreased 2.1% in 9M 19 versus 9M 18 to 21.5% Consolidated Core Op. Exp. Op. Exp. % Op. Exp. 營業費用率 Op. Exp. % 18.4% 19.9% 21.9% 21.5% 769 697 570 547 9M18 9M19 9M18 9M19 NT$ mn NT$ mn 10
Slide 11: 9M19 Operating Income
9M19 Operating Income •Consolidated: Increased 0.8% in 9M19 versus 9M18 to 3.6% Core: Increased 2.4% in 9M 19 versus 9M 18 to 7.8% Consolidated Core Ope. Inc. Ope. Inc. % Ope. Inc. Ope. Inc. % 2.8% 3.6% 7.8% 5.4% 208 107 139 134 9M18 9M19 9M18 9M19 NT$ mn NT$ mn 11
Slide 12: 9M19 Net Income & EPS
9M19 Net Income & EPS •Net Income of NT$ 46mn, a decrease of 14.5% versus 9M 18 •EPS NT$ 0.30, a decrease of 9.1% versus 9M 18 Net Income EPS -14.5% YoY 53 -9.1% YoY 46 0.33 0.30 9M18 9M19 9M18 9M19 NT$ mn EPS NT$ 12
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix 14
Slide 15: About K Laser
About K Laser ► We are the largest fully integrated holographic material supplier in the world, ranking No. 1 in Consumer Packaging and top 3 in Tobacco Security in China. The global market we target is over US$ 3 bn. ► With in-house design and origination capabilities, we are a total solution provi
Slide 16: K Laser at a glance
K Laser at a glance Product sales mix • Ticker: 2461 TT Hologram 69% • Founded in 1988 Optical Film & 31% Projector • 2019 Revenue: NT$5.2 bn (US$173 m) Hologram sales mix Holographic 42% • Market cap*: NT$3.0 bn (US$102 m) paper Holographic film 27% • Employee number **: 750+ Hot stamping 24% • 8 m
Slide 17: Corporate Structure
Corporate Structure K Laser (2461 TT) 80% 42% Hologram 47% Optivision* Everest Insight K Laser(TW)* R&D center (US) Medical (3666 TT) Display Solutions Inc. Projector Capsule China International Ningbo* endoscope Optical Film US Wuxi* Thailand* Dong Guan* Japan* Changsha* Dubai Hong Kong India* Kore
Slide 18: Industry Leader
Industry Leader Products K Laser The largest fully integrated holographic Hologram material supplier in the world is the sole supplier No. 1 in Consumer Packaging Market Our and top 3 in Tobacco Security Market Consumer focus Security in China & Tobacco labels, industry packaging & Capturing a US$3b
Slide 19: TSL – What is it?
TSL – What is it? Truly Seamless (TSL) Traditional TSL can solve the issues - end products with seams or inconsistent patterns 19
Slide 20: TSL – Benefits
TSL – Benefits Minimized disturbance Less limitations on to production specification Traditional Truly Seamless (TSL) Customers K Laser • Production speed/capacity improves significantly • Higher yield rate • Higher yield rate • Higher production rate • Cost-saving for Holographic Film by • Lower in
Slide 21: Strategy Focus
Strategy Focus Resource Gain Shares Optimization Truly Seamless Streamline operations products (TSL) Grow non-tobacco Rationalize global exposure operations 21
Slide 22: Our Goals
Our Goals We strive to enhance our No. 1 position in the world Increase ROE Improve efficiency & Expand gross expand margin in core operating Core revenue business margin in core CAGR superior business to the industry average 22
Slide 23: 3Q19 Income Statement - Consolidated
3Q19 Income Statement - Consolidated NT$ mn 3Q19 3Q18 YoY (%) 9M19 9M18 YoY (%) Revenue 1,445 1,323 9.2 3,865 3,790 2.0 Gross Margin 342 296 15.4 908 805 12.8 Ope. Exp. 310 231 34.4 769 697 10.2 Ope. Inc. 32 66 (51.5) 139 107 29.7 Income before Tax 38 44 (13.1) 67 64 5.4 Net Income to Parent 20 27 (
Slide 24: 09/19 Balance Sheet - Consolidated
09/19 Balance Sheet - Consolidated NT$ mn 2019.09 2018.09 YoY (%) 2019.06 QoQ (%) Total Assest 6,760 6,538 3.4 6,606 2.3 Cash 1,365 1,190 14.7 1,329 2.7 NR & AR 1,601 1,596 0.3 1,581 1.2 Inventory 944 991 (4.8) 963 (1.9) Fixed Asset 1,164 1,229 (5.3) 1,204 (3.3) TOTAL LIABILITIES 3,429 3,107 10.4 3,
Slide 25: 3Q19 Income Statement - Core
3Q19 Income Statement -Core NT$ mn 3Q19 3Q18 YoY (%) 9M19 9M18 YoY (%) Revenue 943 861 9.5 2,652 2,503 5.9 Gross Margin 269 230 17.1 778 681 14.2 Ope. Exp. 204 177 15.1 570 547 4.2 Ope. Inc. 66 53 23.9 208 134 54.8 Income before Tax 43 43 0.2 104 95 9.1 Net Income to Parent 20 27 (25.4) 46 53 (14.5)
Slide 26: 3Q19 Balance Sheet - Core
3Q19 Balance Sheet - Core NT$ mn 2019.09 2018.09 YoY (%) 2019.06 QoQ (%) Total Assest 6,760 6,538 3.4 6,606 2.3 Cash 1,365 1,190 14.7 1,329 2.7 NR & AR 1,601 1,596 0.3 1,581 1.2 Inventory 944 991 (4.8) 963 (1.9) Fixed Asset 1,164 1,229 (5.3) 1,204 (3.3) TOTAL LIABILITIES 3,429 3,107 10.4 3,251 5.5 B
Slide 27: Dividend
Dividend 2016 2017 2018 Net Income (NT$ mn) 215 155 66 Cash Dividend (NT$ mn) 109 91 62 Dividend per Share (NT$) 0.815 0.56 0.41 Payout Ratio (%) 51% 59% 94% Cash Yield (%)* 5.2%* 3.7%* 2.1%* *Cash yield is based on K Laser’s closing share price on the day before ex-dividend day (June 23, 2016 for 2
Slide 28: Thank You
Thank You 28