K Laser Technology, Inc. · TWSE:2461
K Laser Technology — Q3 2021 Earnings Presentation
31 slides from K Laser Technology's earnings presentation, November 2021
Slide 1: K Laser Technology Inc. 2021 Q3 & 9M Investor Conference
K Laser Technology Inc.(2461) 2021 Q3 & 9M Investor Conference 2021/11 1
Slide 2: K Laser at a glance
K Laser at a glance Product sales mix • Ticker: 2461 TT Hologram 63% • Founded in 1988 Optical Film & 37% Projector • 2020 Revenue: NT$5.4 bn (US$184 m) Hologram sales mix Holographic 43% • Market cap*: NT$3.8bn (US$135 m) paper Holographic film 31% • Employee number **: 750+ Hot stamping 20% • 9 ma
Slide 3: About K Laser
About K Laser ► We are the largest fully integrated holographic material supplier in the world, ranking No. 1 in Consumer Packaging and top 3 in Tobacco Security in China. The global market we target is over US$ 3 bn. ► With in-house design and origination capabilities, we are a total solution provi
Slide 4: 2021 Q3 and 9M Results
2021 Q3 and 9M Results 4
Slide 5: 2021 Q3 Highlight
2021 Q3 Highlight •Consolidated: Decreased 3.2% in 3Q21 versus 3Q20 to NT$1,458 mn Revenue •Core(note): Increased 11.0% in 3Q21 versus 3Q20 to NT$ 948mn Gross •Consolidated: Decreased 4.1% in 3Q21 versus 3Q20 to 20.1% Margin •Core: Increased 0.2% in 3Q21 versus 3Q20 to 27.6% Operating •Consolidated:
Slide 6: 2021 9M Highlight
2021 9M Highlight •Consolidate: Increased 12.7% in 9M21 versus 9M20 to NT$4,470 mn Revenue •Core(note): Increased 13.9% in 9M21 versus 9M20 to NT$2,831 mn Gross •Consolidated: Decreased 2.4% in 9M21 versus 9M20 to 20.6% Margin •Core: Decreased 1.6% in 9M21 versus 9M20 to 24.8% Operating •Consolidate
Slide 7: Hologram sales mix by customer industry
Hologram sales mix by customer industry Tobacco & Alcohol Consumer Other 18% 19% 21% 23% 23% 26% 26% 27% 25% 26% 20% 22% 56% 54% 54% 51% 54% 55% 2016 2017 2018 2019 2020 9M21 Note: Other includes anti-counterfeit product, decorations, materials…etc 7
Slide 8: 3Q21 Revenues
3Q21 Revenues •Consolidated: Decreased 3.2% in 3Q21 versus 3Q20 to NT$1,458 mn •Core: Increased 11% in 3Q21 versus 3Q20 to NT$948 mn Consolidated Core -3.2% YoY +11% YoY 1,506 1,458 948 854 3Q20 3Q21 3Q20 3Q21 Revenue NT$ million Revenue NT$ million 8
Slide 9: 9M21 Revenues
9M21 Revenues •Consolidate: Increased 12.7% in 9M21 versus 9M20 to NT$4,470 mn •Core(note): Increased 13.9% in 9M21 versus 9M20 to NT$2,831 mn Consolidated Core +12.7% YoY +13.9% YoY 4,470 2,831 3,965 2,485 9M20 9M21 9M20 9M21 Revenue NT$ million Revenue NT$ million 9
Slide 10: 3Q21 Gross Margin
3Q21 Gross Margin •Consolidated: Decreased 4.1% in 3Q21 versus 3Q20 to 20.1% Core: Increased 0.3% in 3Q21 versus 3Q20 to 27.6% Gross Margin Consolidated Core TSL as % of Revenues % of Consolidated % of Core * TSL% of Revenue Gross Margin-Core ** 31.7% 32.0% 32.1% 27.3% 27.6% 30.5% 29.5% 30.7% 24.2%
Slide 11: 9M21 Gross Margin
9M21 Gross Margin •Consolidated: Decreased 2.4% in 9M 21 versus 9M 20 to 20.6% • Core: Decreased 1.6% in 9M 21 versus 9M 20 to 24.8% Gross Margin TSL as % of Revenues Consolidated Core % as Consolidated % as Core * TSL% of Revenue Gross Margin-Core ** 26.4% 24.8% 31.7% 32.0% 32.1% 30.5% 30.7% 29.5%
Slide 12: 3Q21 Operating Expenses
3Q21 Operating Expenses •Consolidated: Decreased 0.8% in 3Q21 versus 3Q20 to 17.3% •Core: Increased 0.1% in 3Q21 versus 3Q20 to 20.6% Consolidated Core Op. Exp. Op. Exp. % Op. Exp. Op. Exp. % 18.1% 17.3% 20.5% 20.6% 272 252 175 195 3Q20 3Q21 3Q20 3Q21 NT$ mn NT$ mn 12
Slide 13: 9M21 Operating Expenses
9M21 Operating Expenses •Consolidated: Decreased 2.8% in 9M 21 versus 9M 20 to 15.6% • Core: Decreased 0.7% in 9M 21 versus 9M 20 to 19.4% Consolidated Core Op. Exp. Op. Exp. % Op. Exp. Op. Op. Exp. Exp.%% 18.4% 20.1% 15.6% 19.4% 731 696 549 500 9M20 9M21 9M20 9M21 NT$ mn NT$ mn 13
Slide 14: 3Q21 Operating Income
3Q21 Operating Income •Consolidated: Decreased 3.3% in 3Q21 versus 3Q20 to 2.8% •Core: Increased 0.2% in 3Q21 versus 3Q20 to 7.0% Consolidated Core Ope. Inc. Ope. Inc. % Ope. Inc. Ope. Inc. % 6.1% 6.8% 7.0% 2.8% 92 58 66 41 3Q20 3Q21 3Q20 3Q21 NT$ mn NT$ mn 14
Slide 15: 9M21 Operating Income
9M21 Operating Income •Consolidated: Increased 0.5% in 9M21 versus 9M20 to 5.1% Core: Increased 0.1% in 9M 21 versus 9M 20 to 6.9% Consolidated Core Ope. Inc. Ope. Inc. % Ope. Inc. Ope. Inc. % 4.6% 5.1% 6.8% 6.9% 227 181 196 169 9M20 9M21 9M21 9M20 NT$ mn NT$ mn 15
Slide 16: 3Q21 Net Income & EPS
3Q21 Net Income & EPS •Net Income of NT$124mn, a 109.5% increased versus 3Q20. •EPS of NT$0.82, a 110.3% increased versus 3Q20. Net Income EPS +109.5% YoY +110.3% YoY 124 0.82 59 0.39 3Q20 3Q21 3Q20 3Q21 NT$ mn EPS NT$ 16
Slide 17: 9M21 Net Income & EPS
9M21 Net Income & EPS •Net Income of NT$ 357mn, a 234.4% increased versus 9M20 •EPS NT$ 2.37, a 238.6% increased versus 9M20 Net Income EPS +234.4% YoY +238.6% YoY 357 2.37 107 0.7 9M20 9M21 9M20 9M21 NT$ mn EPS NT$ 17
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
Appendix 19
Slide 20: TSL – What is it?
TSL – What is it? Truly Seamless (TSL) Traditional TSL can solve the issues - end products with seams or inconsistent patterns 20
Slide 21: 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 22: K Laser Foils
K Laser Foils Not only for general decorative purposes, it also has various explicit or implicit anti-counterfeiting designs. Conform to the trend of the world's anti-counterfeiting industry, the Security Technology which can be used to quickly identify authenticity with tools, is also added. 22
Slide 23: EU tax bar anti-counterfeiting requirement on cigarette boxes
EU require tax bar on all the cigarette boxes should contain anti-counterfeiting solution for identifying authenticity with tools since May 2019. Government bids in several countries also include Security Technology . 23
Slide 24: AI Security
AI Security With Smartphones and AI security app, hologram labels can be verified their genuineness easily and quickly. The use of AI technology will not only enhance the security of K Laser hologram products but help us make differentiation with our competitors 'products. Applications Security Labe
Slide 25: AI Authentication Operation
AI Authentication Operation Holographic labels Phone with AiSecure App Immediate result Demo video
Slide 26: Income Statement - Consolidated
Income Statement - Consolidated NT$ Million 3Q21 3Q20 YoY (%) 9M21 9M20 YoY (%) Sales Revenue 1,458 1,506 (3.2) 4,470 3,965 12.7 Gross Profit 293 364 (19.7) 923 912 1.1 Operating Expenses 252 272 (7.5) 696 731 (4.8) Operating Profit 41 92 (55.5) 227 181 25.2 Income before Tax 118 96 23.0 431 157 174
Slide 27: Balance Sheet - Consolidated
Balance Sheet - Consolidated NT$ Million 2021.09 2020.09 YoY (%) 2021.06 QoQ (%) TOTAL ASSETS 7,783 7,241 7.5 8,116 (4.1) Cash 2,313 2,105 9.9 2,686 (13.9) NR & AR 1,433 1,586 (9.6) 1,549 (7.5) Inventory 1,149 938 22.5 1,087 5.7 Fixed Asset 1,128 1,104 2.3 1,143 (1.3) TOTAL LIABILITIES 3,814 3,928 (
Slide 28: Income Statement - Core
Income Statement -Core NT$ Million 3Q21 3Q20 YoY (%) 9M21 9M20 YoY (%) Sales Revenue 948 854 11.0 2,831 2,485 13.9 Gross Profit 261 233 12.0 745 669 11.3 Operating Expenses 195 175 11.6 549 500 9.7 Operating Profit 66 58 13.1 196 169 15.9 Income before Tax 158 80 97.2 458 162 182.3 Net Income to Par
Slide 29: Balance Sheet - Core
Balance Sheet - Core NT$ Million 2021.09 2020.09 YoY (%) 2021.06 QoQ (%) TOTAL ASSETS 6,221 5,894 5.5 6,341 (1.9) Cash 1,365 1,721 (20.7) 1,603 (14.9) NR & AR 832 745 11.7 838 (0.7) Inventory 912 719 26.8 832 9.7 Fixed Asset 861 860 0.0 859 0.2 TOTAL LIABILITIES 3,263 3,202 1.9 3,409 (4.3) Bank Loan
Slide 30: Dividend
Dividend 2017 2018 2019 2020 2021Q2 Net Income (NT$ mn) 155 66 -120 144 233 Cash Dividend (NT$ mn) 91 62 0 144 81 Dividend per Share (NT$) 0.56 0.41 0 0.96 0.54 Payout Ratio (%) 59% 94% 0% 100% 35% Cash Yield (%)* 3.7% 2.1% 0.0% 4.6% 2.3% *Cash yield is based on K Laser’s closing share price on the
Slide 31: Thank You
Thank You 31