Slide 1: K Laser Technology Inc. 2022 Q3 & 9M Investor Conference
K Laser Technology Inc.(2461) 2022 Q3 & 9M Investor Conference 2022/11 1
Slide 2: K Laser at a glance
K Laser at a glance Product sales mix • Ticker: 2461 TT Hologram 72% • Founded in 1988 Optical Film & 28% Projector • 2022 Revenue: NT$6.1 bn (US$219 m) Hologram sales mix Holographic 38% • Market cap*: NT$3.0bn (US$94 m) paper Holographic film 28% • Employee number **: 940+ Hot stamping 22% • 9 man
Slide 3: About K Laser
About K Laser ► We are the largest fully integrated holographic material supplier in the world, ranking No. 1 in Consumer Packaging and top 3 in Tobacco Security in China. The global market we target is over US$ 3 bn. ► With in-house design and origination capabilities, we are a total solution provi
Slide 4: 2022 Q3 and 9M Results
2022 Q3 and 9M Results 4
Slide 5: 2022 Q3 Highlight
2022 Q3 Highlight •Consolidated: Increased 7.8% in 3Q22 versus 3Q21 to NT$1,571 mn Revenue •Core(note): Increased 25.3% in 3Q22 versus 3Q21 to NT$ 1,188mn Gross •Consolidated: Decreased 3.4% in 3Q22 versus 3Q21 to 16.7% Margin •Core: Decreased 2.8% in 3Q22 versus 3Q21 to 24.7% Operating •Consolidate
Slide 6: 2022 9M Highlight
2022 9M Highlight •Consolidate: Increased 9.1 % in 9M22 versus 9M21 to NT$ 4,876 mn Revenue •Core(note): Increased 23.5 % in 9M22 versus 9M21 to NT$ 3,497 mn Gross •Consolidated: Decreased 2.5 % in 9M22 versus 9M21 to 18.1% Margin •Core: Decreased 1.2 % in 9M22 versus 9M21 to 25% Operating •Consolid
Slide 7: Hologram sales mix by customer industry
Hologram sales mix by customer industry Tobacco & Alcohol Consumer Other 19% 21% 23% 23% 26% 36% 27% 25% 22% 26% 20% 18% 54% 54% 51% 54% 55% 46% 2017 2018 2019 2020 2021 9M2022 Note: Other includes anti-counterfeit product, decorations, materials…etc 7
Slide 8: 3Q22 Revenues
3Q22 Revenues •Consolidated: Increased 7.8 % in 3Q22 versus 3Q21 to NT$ 1,571 mn •Core: Increased 25.3 % in 3Q22 versus 3Q21 to NT$ 1,188 mn Consolidated Core +7.8% YoY +25.3% YoY 1,571 1,458 1188 948 3Q21 3Q22 3Q21 3Q22 Revenue NT$ million Revenue NT$ million 8
Slide 9: 9M22 Revenues
9M22 Revenues •Consolidate: Increased 9.1 % in 9M22 versus 9M21 to NT$ 4,876 mn •Core(note): Increased 23.5 % in 9M22 versus 9M21 to NT$ 3,497 mn Consolidated Core +9.1% YoY +23.5% YoY 3,497 4,876 4,470 2,831 9M21 9M22 9M21 9M22 Revenue NT$ million Revenue NT$ million 9
Slide 10: 3Q22 Gross Margin
3Q22 Gross Margin •Consolidated: Decreased 3.4 % in 3Q22 versus 3Q21 to 16.7% Core: Decreased 2.8 % in 3Q22 versus 3Q21 to 24.7% Gross Margin Consolidated Core % of Consolidated % of Core 27.5% 24.7% 20.1% 16.7% 293 261 263 294 3Q21 3Q22 Gross Margin NT$ mn 10
Slide 11: 9M22 Gross Margin
9M22 Gross Margin •Consolidated: Decreased 2.5 % in 9M22 versus 9M21 to 18.1% • Core: Decreased 1.2 % in 9M22 versus 9M21 to 25% Gross Margin TSL as % of Revenues Consolidated Core % as Consolidated % as Core TSL% of Revenue Gross Margin-Core (Excl. He Rui Laser) 26.2% 25.0% 32.0% 31.3% 30.7% 29.5%
Slide 12: 3Q22 Operating Expenses
3Q22 Operating Expenses •Consolidated: Decreased 1.5% in 3Q22 versus 3Q21 to 18.8% •Core: Decreased 0.7% in 3Q22 versus 3Q21 to 19.8% Consolidated Core Op. Exp. Op. Exp. % Op. Exp. Op. Exp. % 17.3% 18.8% 20.5% 19.8% 295 252 235 195 3Q21 3Q22% 3Q21 3Q22 NT$ mn NT$ mn 12
Slide 13: 9M22 Operating Expenses
9M22 Operating Expenses •Consolidated: Increased 2.3% in 9M22 versus 9M21 to 17.9% • Core: Increased 0.2% in 9M22 versus 9M21 to 19.5% Consolidated Core Op. Exp. Op. Exp. % Op. Exp. Op. Op. Exp. Exp.%% 17.9% 19.3% 19.5% 15.6% 874 681 696 547 9M21 9M22 9M21 9M22 NT$ mn NT$ mn 13
Slide 14: 3Q22 Operating Income
3Q22 Operating Income •Consolidated: Decreased 4.9 % in 3Q22 versus 3Q21 to -2.1% •Core: Decreased 2 % in 3Q22 versus 3Q21 to 5% Consolidated Core Ope. Inc. Ope. Inc. % Ope. Inc. Ope. Inc. % 7.0% 2.8% 5.0% -2.1% 41 66 59 3Q21 3Q22 3Q21 3Q22 NT$ mn NT$ mn 14
Slide 15: 9M22 Operating Income
9M22 Operating Income •Consolidated: Decreased 4.9 % in 9M22 versus 9M21 to 0.2% Core: Decreased 1.4 % in 9M22 versus 9M21 to 5.5% Consolidated Core Ope. Inc. Ope. Inc. % Ope. Inc. Ope. Inc. % 5.1% 0.2% 6.9% 5.5% 227 196 193 10 9M21 9M22 9M21 9M22 NT$ mn NT$ mn 15
Slide 16: 3Q22 Net Income & EPS
3Q22 Net Income & EPS •Net Income of NT$67mn, a 46.1% decreased versus 3Q21. •EPS of NT$0.43, a NT$ 0.39 decreased versus 3Q21. Net Income EPS -46.1% YoY - $0.39 YoY 124 0.82 67 0.43 3Q21 3Q22 3Q21 3Q22 NT$ mn EPS NT$ 16
Slide 17: 9M22 Net Income & EPS
9M22 Net Income & EPS •Net Income of NT$ 218mn, a 38.9% decreased versus 9M21 •EPS of NT$1.43, a NT$ 0.94 decreased versus 9M21. Net Income EPS -38.9% YoY - $0.94 YoY 2.37 357 1.43 218 9M21 9M22 9M21 9M22 NT$ mn EPS NT$ 17
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
Appendix 19
Slide 20: Certificate of Recyclability
Certificate of Recyclability Transfer paper product was qualified as recyclable product, And received certificate of recyclability issued by interseroh(Germany).
Slide 21: TSL – What is it?
TSL – What is it? Truly Seamless (TSL) Traditional TSL can solve the issues - end products with seams or inconsistent patterns 21
Slide 22: 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 23: 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. 23
Slide 24: EU anti-counterfeiting requirement for 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 . 24
Slide 25: AI anti-counterfeiting identification solution
AI anti-counterfeiting identification solution Applied Products Laser Hot Foil Cold Foil Anti-counterfeiting Label 25
Slide 26: AI anti-counterfeiting identification process
AI anti-counterfeiting identification process Laser label Mobile with AiSecure App Instantly identification Demo Video 26
Slide 27: AISECURE – NICE CASE
AISECURE – NICE CASE NICE two products in China 1. BAIGO laundry detergent 2. PONPON body wash 27
Slide 28: Income Statement - Consolidated
Income Statement - Consolidated NT$ Million 3Q22 3Q21 YoY (%) 9M22 9M21 YoY (%) Sales Revenue 1,571 1,458 7.8 4,876 4,470 9.1 Gross Profit 263 293 (10.3) 885 923 (4.1) Operating Expenses 295 252 17.2 874 696 25.7 Operating Profit (32) 41 (178.3) 10 227 (95.5) Income before Tax (15) 118 (112.7) 142 4
Slide 29: Balance Sheet - Consolidated
Balance Sheet - Consolidated NT$ Million 2022.09 2021.09 YoY (%) 2022.06 QoQ (%) TOTAL ASSETS 8,055 7,783 3.5 8,481 (5.0) Cash 1,717 2,313 (25.8) 2,085 (17.6) NR & AR 1,456 1,433 1.6 1,537 (5.2) Inventory 1,447 1,149 26.0 1,465 (1.2) Fixed Asset 1,665 1,128 47.5 1,705 (2.4) TOTAL LIABILITIES 3,829 3
Slide 30: Income Statement - Core
Income Statement -Core NT$ Million 3Q22 3Q21 YoY (%) 9M22 9M21 YoY (%) Sales Revenue 1,188 948 25.3 3,497 2,831 23.5 Gross Profit 294 261 12.8 874 742 17.8 Operating Expenses 235 195 20.7 681 547 24.6 Operating Profit 59 66 (10.6) 193 196 (1.3) Income before Tax 82 158 (48.0) 283 458 (38.2) Net Inco
Slide 31: Balance Sheet - Core
Balance Sheet - Core NT$ Million 2022.09 2021.09 YoY (%) 2022.06 QoQ (%) TOTAL ASSETS 6,990 6,221 12.4 7,065 (1.1) Cash 1,251 1,365 (8.3) 1,486 (15.8) NR & AR 1,193 832 43.4 1,114 7.1 Inventory 1,251 912 37.2 1,221 2.5 Fixed Asset 1,126 861 30.8 1,086 3.6 TOTAL LIABILITIES 3,443 3,263 5.5 3,610 (4.6
Slide 32: Dividend
Dividend 2017 2018 2019 2020 2021 2022H1 Net Income (NT$ mn) 155 66 -120 144 364 151 Cash Dividend (NT$ mn) 91 62 0 144 263 46 Dividend per Share (NT$) 0.56 0.41 0 0.96 1.74 0.3 Payout Ratio (%) 59% 94% 0% 100% 72% 30% Cash Yield (%)* 3.7% 2.1% 0.0% 4.6% 9.3% 3.3% *Cash yield is based on K Laser’s c
Slide 33: Thank You
Thank You 33