Slide 1: K Laser Technology Inc. 2020 Q1 Investor Conference
K Laser Technology Inc.(2461) 2020 Q1 Investor Conference 2020/05 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: 2020Q1 Results
2020Q1 RESULTS 3
Slide 4: 2020 Q1 Highlight
2020 Q1 Highlight •Consolidated: Decrease 4.7% in 1Q20 versus 1Q19 to NT$11.6 million Revenue •Core(note): Decrease 13% in 1Q20 versus 1Q19 to NT$ 8.01 million Gross •Consolidated: Decrease 1.5% in 1Q20 versus 1Q19 to 20.6% Margin •Core: Decrease 4.3% in 1Q20 versus 1Q19 to 23.7% Operating •Consolid
Slide 5: 1Q20 Revenue
1Q20 Revenue •Consolidated: Decrease 4.7% in 1Q20 versus 1Q19 to NT$11.6 million •Core:Decrease 13% in 1Q20 versus 1Q19 to NT$ 8.01 million Affected by COVID-19, CN region fell by about 20% Consolidated Core -4.7% YoY -13% YoY 1,218 1,160 920 801 1Q19 1Q20 1Q19 1Q20 Revenue NT$ million Revenue NT$
Slide 6: Hologram sales mix by customer industry
Hologram sales mix by customer industry Other Consumer Tobacco & Alcohol 15% 17% 17% 18% 19% 21% 23% 25% 25% 28% 27% 31% 35% 27% 25% 32% 23% 23% 57% 52% 55% 54% 54% 52% 52% 45% 48% 2012 2013 2014 2015 2016* 2017* 2018* 2019* 1Q20* Note: Other includes anti-counterfeit product, decorations, materials
Slide 7: 1Q20 Gross Margin
1Q20 Gross Margin •Consolidated: Decrease 1.5% in 1Q20 versus 1Q19 to 20.6% Core: Decrease 4.3% in 1Q20 versus 1Q19 to 23.7% Gross Margin TSL as % of Revenues Consolidated Core* % of Consolidated % of Core* 31.7% 32.0% 30.5% 29.1% 28.1% 26.8% 25.7% 23.7% 24.7% 24.9% 15.3% 14.5% 22.1% 13.2% 13.6% 13.
Slide 8: 1Q20 Operating Expense
1Q20 Operating Expense •Consolidated: Increase 1.5% in 1Q20 versus 1Q19 to 20.1% IMS.is consolidated since 2020. •Core: Increased 1.2% in 1Q20 versus 1Q19 to 20.9% KLTW will continue to strengthen the control of operating expenses Consolidated Core Op. Exp. Op. Exp. % Op. Exp. Op. Exp. % 18.6% 2
Slide 9: 1Q20 Operating Income
1Q20 Operating Income •Consolidated:Decrease 2% in 1Q20 versus 1Q19 to 0.6% •Core: Decrease 5.6% in 1Q20 versus 1Q19 18 to 2.8% Consolidated Core Ope. Inc. Ope. Inc. % Ope. Inc. Ope. Inc. % 8.4% 3.6% 0.6% 2.8% 77 43 7 23 1Q19 1Q20 1Q19 1Q20 NT$ mn NT$ mn 9
Slide 10: 1Q20 Net Income & EPS
1Q20 Net Income & EPS •Net Income of NT$4mn, a decrease of 43.2% versus 1Q19. •EPS of NT$0.02, a decrease of 50% versus 1Q19. Net Income EPS -43% YoY -50% YoY 7 4 0.04 0.02 1Q19 1Q20 1Q19 1Q20 NT$ mn EPS NT$ 10
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
Appendix 12
Slide 13: 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 14: K Laser at a glance
K Laser at a glance Product sales mix • Ticker: 2461 TT Hologram 67% • Founded in 1988 Optical Film & 33% Projector • 2019 Revenue: NT$5.2 bn (US$173 m) Hologram sales mix Holographic 44% • Market cap*: NT$3.0 bn (US$102 m) paper Holographic film 27% • Employee number **: 750+ Hot stamping 23% • 8 m
Slide 15: Corporate Structure
Corporate Structure K Laser (2461 TT) Hologram 46% 80% 45% Optivision* Everest Insight K Laser(TW)* R&D center (US) Medical (3666 TT) Display Solutions Inc Projector Capsule China International Ningbo* endoscope US Optical Film Wuxi* Thailand* Dong Guan* Japan* Changsha* Dubai Hong Kong India* Korea
Slide 16: 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$3b
Slide 17: TSL – What is it?
TSL – What is it? Truly Seamless (TSL) Traditional TSL can solve the issues - end products with seams or inconsistent patterns 17
Slide 18: TSL – Benefits
TSL – Benefits Minimized disturbance Less limitations on to production specification Traditional Truly Seamless (TSL) Customers K Laser • Production speed/capacity improves significantly • Higher yield rate • Higher yield rate • Higher production rate • Cost-saving for Holographic Film by • Lower in
Slide 19: Strategy Focus
Strategy Focus Resource Gain Shares Optimization Truly Seamless Streamline operations products (TSL) Grow non-tobacco Rationalize global exposure operations 19
Slide 20: Our Goals
Our Goals We strive to enhance our No. 1 position in the world Increase ROE Improve efficiency & Expand gross expand margin in core operating Core revenue business margin in core CAGR superior business to the industry average 20
Slide 21: 1Q20 Income Statement - Consolidated
1Q20 Income Statement - Consolidated NT$百萬元 1Q20 1Q19 YoY (%) Y19 Y18 YoY (%) Revenue 1,160 1,218 (4.7) 5,199 5,202 (0.1) Gross Margin 239 270 (11.2) 1,184 1,094 8.3 Ope. Exp. 233 226 3.0 1,153 921 25.2 Ope. Inc. 7 43 (85.0) 31 173 (82.1) Income before Tax 4 10 (62.2) (115) 87 (232.6) Net Income to
Slide 22: 1Q20 Balance Sheet - Consolidated
1Q20 Balance Sheet - Consolidated NT$ mn 2020.03 2019.03 YoY (%) 2019.12 QoQ (%) Total Assest 6,819 6,852 (0.5) 6,786 0.5 Cash 1,724 1,249 38.0 1,588 8.5 NR & AR 1,407 1,804 (22.0) 1,490 (5.5) Inventory 926 909 1.9 915 1.3 Fixed Asset 1,154 1,247 (7.5) 1,190 (3.0) TOTAL LIABILITIES 3,631 3,406 6.6 3
Slide 23: 1Q20 Income Statement - Core
1Q20 Income Statement -Core NT$ mn 1Q20 1Q19 YoY (%) Y2019 Y2018 YoY (%) Revenue 801 920 (13.0) 3,504 3,391 3.3 Gross Margin 190 258 (26.4) 1,025 928 10.4 Ope. Exp. 167 181 (7.5) 778 712 9.3 Ope. Inc. 23 77 (70.6) 246 216 14.0 Income before Tax 16 27 (40.0) (46) 132 (134.5) Net Income to Parent 4 7
Slide 24: 1Q20 Balance Sheet - Core
1Q20 Balance Sheet - Core NT$ mn 2020.03 2019.03 YoY (%) Y2019 QoQ (%) Total Assest 5,416 5,595 (3.2) 5,270 2.8 Cash 1,305 1,076 21.3 1,172 11.3 NR & AR 733 1,064 (31.1) 758 (3.3) Inventory 715 658 8.7 693 3.1 Fixed Asset 883 971 (9.1) 908 (2.8) TOTAL LIABILITIES 2,771 2,555 8.4 2,578 7.5 Bank Loans
Slide 25: 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 26: Thank You
Thank You 26