Slide 1: K LASER (2461) 1Q16 Investor Conference
K LASER (2461) 1Q16 Investor Conference May 2016 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: 1Q16 Results
1Q16 RESULTS 3
Slide 4: 1Q16 Highlights
1Q16 Highlights ► Net Income increased 21.6% YoY to NT$31 mn in 1Q16 while EPS was up 43.8% YoY to NT$0.23 in 1Q16. ► Revenue increased 22.8% in 1Q16 versus 1Q15 to NT$1,157 mn. ► Gross Margin expanded 2.2pp in 1Q16 versus 1Q15 to 26.1%. ► Operating Margin improved 3.3pp in 1Q16 versus 1Q15 to 8.7%.
Slide 5: 1Q16 Earnings
1Q16 Earnings ► Net Income increased 21.6% YoY to NT$31 mn in 1Q16. ► EPS rose 43.8% YoY to NT$0.23 in 1Q16. Net Income to Parent EPS 31 0.23 25 0.16 1Q15 1Q16 1Q15 1Q16 Net Income to Parent NT$ million EPS NT$ 5
Slide 6: 1Q16 Revenue
1Q16 Revenue ► Growth was a result of consolidating He Rui Laser and the core Hologram business as well as strong revenue growth from our subsidiary Optivision. Revenue Revenue YoY Growth 22.8% -4.8% 1,157 942 1Q15 1Q16 Revenue NT$ million Note: K Laser increased holdings of He Rui Laser to 74% from
Slide 7: 1Q16 Gross Margin
1Q16 Gross Margin ► K Laser’s gross margin increased owing to a firm focus on high margin products and rising penetration for TSL products, while gross margin at Optivision also improved. ► Gross margin of the core business* expanded 2.7pp in 1Q16 versus 1Q15 thanks to improvements in the manufactur
Slide 8: 1Q16 Income Statement (consolidated)
1Q16 Income Statement (consolidated) NT$ Million 1Q16 1Q15 YoY (%) 2015 2014 YoY (%) Sales Revenue 1,157 942 22.8 4,057 4,216 (3.8) Gross Profit 302 225 34.3 1,013 1,122 (9.7) Operating Profit 100 51 96.8 290 272 6.4 Income before Tax 62 27 132.0 249 229 8.4 Net Income to Parent 31 25 21.6 164 91 81
Slide 9: About K Laser
ABOUT K LASER 9
Slide 10: Executive Summary
Executive Summary ► 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 p
Slide 11: K Laser at a glance
K Laser at a glance Product sales mix ► Ticker: 2461 TT Hologram 72% ► Founded in 1988 Optical Film 28% ► 2015 Revenue: NT$4.1 bn (US$125 m) Hologram sales mix Holographic Market cap*: NT$1.8 bn (US$56 m) 34% ► paper ► Employee number **: 800+ Holographic film 20% Hot stamping ► 8 manufacturing site
Slide 12: 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$3b
Slide 13: TSL – What is it?
TSL – What is it? Truly Seamless (TSL) Traditional TSL can solve the issues - end products with seams or inconsistent patterns 13
Slide 14: TSL – Benefits
TSL – Benefits Minimized disturbance Less limitations on to production specification Traditional Truly Seamless (TSL) Customers K Laser • Production speed/capacity improves significantly • Higher yield rate • Higher yield rate • Higher production rate • Cost-saving for Holographic Film by • Lower in
Slide 15: Strategy Focus
Strategy Focus Resource Gain Shares Optimization Truly Seamless Streamline operations products (TSL) Grow non-tobacco Rationalize global exposure operations 15
Slide 16: Hologram sales mix by customer industry
Hologram sales mix by customer industry Other Consumer Tobacco & Alcohol 15% 16% 20% 20% 21% 25% 34% 34% 36% 30% 36% 36% 52% 49% 50% 42% 43% 39% 2012 2013 2014 2015 1Q16* 1Q16 Note: Other includes glitters, decorations, materials…etc * Excluding the newly consolidated China subsidiary, He Rui Laser
Slide 17: 3-year Goals
3-year Goals We strive to enhance our No. 1 position in the world Target ROE to reach double Expand digits operating Expand gross margin to margin in core double digits in Core revenue business core business CAGR superior to the industry average 17
Slide 18: K Laser
fi 18 K LASER
Slide 19: Appendix
APPENDIX 2 K LASER
Slide 20: 1Q16 Balance Sheet (consolidated)
1Q16 Balance Sheet (consolidated) NT$ Million 1Q16 1Q15 YoY (%) 2015 2014 YoY (%) TOTAL ASSETS 6,434 6,153 4.6 5,996 6,175 (2.9) Cash 1,174 1,128 4.1 1,242 1,106 12.3 NR & AR 1,789 1,663 7.6 1,548 1,696 (8.7) Inventory 698 592 17.9 564 622 (9.3) Fixed Asset 1,425 1,376 3.5 1,329 1,406 (5.5) TOTAL LI
Slide 21: Dividend
Dividend 2013 2014 2015 Net Income (NT$ mn) 228 91 164 Cash Dividend (NT$ mn) 105 55 66 Dividend per Share (NT$) 0.65 0.42 0.50 Payout Ratio (%) 46% 61% 40% Cash Yield (%) 3.8%* 2.9%* 3.6%** * Cash yield is based on K Laser’s closing share price on the day before ex-dividend day (August 6, 2014 for
Slide 22: Thank You
THANK YOU 2 K LASER