K Laser Technology, Inc. · TWSE:2461
K Laser Technology — Q3 2023 Earnings Presentation
33 slides from K Laser Technology's earnings presentation, December 2023
Slide 1: K Laser Technology Inc. 2023 Q3 & 9M Investor Conference
K Laser Technology Inc.(2461) 2023 Q3 & 9M Investor Conference 2023/12 1
Slide 2: K Laser at a glance
K Laser at a glance Product sales mix • Ticker: 2461 TT Hologram 77% • Founded in 1988 Optical Film & 23% Projector • 2023 9M Revenue: NT$4.2 bn (US$131 m) Hologram sales mix Holographic 39% • Market cap*: NT$4.2bn (US$131 m) paper Holographic film 28% • Employee number **: 935+ Hot stamping 26% • 1
Slide 3: About K Laser
About K Laser We are the largest fully integrated holographic material supplier in the world, ranking No. 1 in Consumer Packaging and top 3 in Tobacco Security in China. The global market we target is over US$ 3 bn. With in-house design and origination capabilities, we are a total solution provider,
Slide 4: 2023 Q3 and 9M Results
2023 Q3 and 9M Results 4
Slide 5: 2023 Q3 Highlight
2023 Q3 Highlight •Consolidated: Decreased 8.5% in 3Q23 versus 3Q22 to NT$1,437 mn Revenue •Core(note): Decreased 9.4% in 3Q23 versus 3Q22 to NT$ 1,076mn Gross •Consolidated: Increased 5.5% in 3Q23 versus 3Q22 to 22.2% Margin •Core: Increased 3.9% in 3Q23 versus 3Q22 to 28.7% Operating •Consolidated
Slide 6: 2023 9M Highlight
2023 9M Highlight •Consolidate: Decreased 13.9 % in 9M23 versus 9M22 to NT$ 4,200 mn Revenue •Core(note): Decreased 7.9 % in 9M23 versus 9M22 to NT$ 3,220 mn Gross •Consolidated: Increased 3.8 % in 9M23 versus 9M22 to 22.0% Margin •Core: Increased 3.5 % in 9M23 versus 9M22 to 28.5% Operating •Consol
Slide 7: Hologram sales mix by customer industry
Hologram sales mix by customer industry Tobacco & Alcohol Consumer Other 21% 23% 26% 26% 35% 34% 25% 26% 20% 20% 17% 21% 54% 51% 54% 54% 48% 45% 2018 2019 2020 2021 2022 9M23 Note: Other includes anti-counterfeit product, decorations, materials…etc 7
Slide 8: 3Q23 Revenues
3Q23 Revenues •Consolidated: decreased 8.5 % in 3Q23 versus 3Q22 to NT$ 1,437 mn •Core: decreased 9.4 % in 3Q23 versus 3Q22 to NT$ 1,076 mn Consolidated Core -8.5% YoY -9.4% YoY 1,571 1,437 1188 1076 3Q22 3Q23 3Q22 3Q23 Revenue NT$ million Revenue NT$ million 8
Slide 9: 9M23 Revenues
9M23 Revenues •Consolidate: decreased 13.9 % in 9M23 versus 9M22 to NT$ 4,200 mn •Core(note): decreased 7.9 % in 9M23 versus 9M22 to NT$ 3,220 mn Consolidated Core -13.9% YoY -7.9% YoY 3,497 4,876 3,220 4,200 9M22 9M23 9M22 9M23 Revenue NT$ million Revenue NT$ million 9
Slide 10: 3Q23 Gross Margin
3Q23 Gross Margin •Consolidated: Increased 5.5 % in 3Q23 versus 3Q22 to 22.2% Core: Increased 3.9 % in 3Q23 versus 3Q22 to 28.7% Gross Margin Consolidated Core % of Consolidated % of Core 28.7% 24.7% 22.2% 16.7% 263 294 320 308 3Q22 3Q23 Gross Margin NT$ mn 10
Slide 11: 9M23 Gross Margin
9M23 Gross Margin •Consolidated: Increased 3.8 % in 9M23 versus 9M22 to 22% • Core: Increased 3.6 % in 9M23 versus 9M22 to 28.6% Gross Margin Consolidated Core % as Consolidated % as Core 28.6% 25.0% 22.0% 18.1% 885 874 922 920 9M22 9M23 Gross Margin NT$ mn 11
Slide 12: 3Q23 Operating Expenses
3Q23 Operating Expenses •Consolidated: Increased 2.2% in 3Q23 versus 3Q22 to 21.0% •Core: Increased 1.9% in 3Q23 versus 3Q22 to 21.7% Consolidated Core Op. Exp. Op. Exp. % Op. Exp. Op. Exp. % 21.0% 18.8% 21.7% 19.8% 295 301 235 234 3Q22 3Q23 3Q22 3Q23 NT$ mn NT$ mn 12
Slide 13: 9M23 Operating Expenses
9M23 Operating Expenses •Consolidated: Increased 2.9% in 9M23 versus 9M22 to 20.8% • Core: Increased 1.7% in 9M23 versus 9M22 to 21.2% Consolidated Core Op. Exp. Op. Exp. % Op. Exp. Op. Op. Exp. Exp.% % 17.9% 20.8% 19.5% 21.2% 874 876 681 684 9M22 9M23 9M22 9M23 NT$ mn NT$ mn 13
Slide 14: 3Q23 Operating Income
3Q23 Operating Income •Consolidated: Increased 3.4 % in 3Q23 versus 3Q22 to 1.3% •Core: Increased 1.9 % in 3Q23 versus 3Q22 to 6.9% Consolidated Core Ope. Inc. Ope. Inc. % Ope. Inc. Ope. Inc. % 5.0% 6.9% 1.3% -2.1% 18 59 74 (32) 3Q22 3Q23 3Q22 3Q23 NT$ mn NT$ mn 14
Slide 15: 9M23 Operating Income
9M23 Operating Income •Consolidated: Increased 0.9 % in 9M23 versus 9M22 to 1.1% Core: Increased 1.8 % in 9M23 versus 9M22 to 7.3% Consolidated Core Ope. Inc. Ope. Inc. % Ope. Inc. Ope. Inc. % 0.2% 1.1% 5.5% 7.3% 236 193 46 10 9M22 9M23 9M22 9M23 NT$ mn NT$ mn 15
Slide 16: 3Q23 Net Income & EPS
3Q23 Net Income & EPS •Net Income of NT$42mn, a 37.1% decreased versus 3Q22. •EPS of NT$0.26, a NT$ 0.17 decreased versus 3Q22. Net Income EPS -37.1% YoY - $0.17 YoY 67 0.43 42 0.26 3Q22 3Q23 3Q22 3Q23 NT$ mn EPS NT$ 16
Slide 17: 9M23 Net Income & EPS
9M23 Net Income & EPS •Net Income of NT$ 129mn, a 40.7% decreased versus 9M22 •EPS of NT$0.83, a NT$ 0.60 decreased versus 9M22. Net Income EPS -40.7% YoY - $0.60 YoY 1.43 218 129 0.83 9M22 9M22 9M22 9M23 NT$ 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 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 . 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 Demo Video identification 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 3Q23 3Q22 YoY (%) 9M23 9M22 YoY (%) Sales Revenue 1,437 1,571 (8.5) 4,200 4,876 (13.9) Gross Profit 320 263 21.7 922 885 4.2 Operating Expenses 301 295 2.2 876 874 0.2 Operating Profit 18 (32) (156.1) 46 10 353.2 Income before Tax 31 (15) (306.8) 47 142 (6
Slide 29: Balance Sheet - Consolidated
Balance Sheet - Consolidated NT$ Million 2023.09 2022.09 YoY (%) 2023.06 QoQ (%) TOTAL ASSETS 7,917 8,055 (1.7) 7,910 0.1 Cash 1,549 1,717 (9.8) 1,841 (15.9) NR & AR 1,547 1,456 6.2 1,482 4.4 Inventory 1,378 1,447 (4.8) 1,234 11.7 Fixed Asset 1,648 1,665 (1.0) 1,601 2.9 TOTAL LIABILITIES 3,662 3,829
Slide 30: Income Statement - Core
Income Statement -Core NT$ Million 3Q23 3Q22 YoY (%) 9M23 9M22 YoY (%) Sales Revenue 1,076 1,188 (9.4) 3,220 3,497 (7.9) Gross Profit 308 294 4.9 920 874 5.2 Operating Expenses 234 235 (0.4) 684 681 0.4 Operating Profit 74 59 26.2 236 193 22.2 Income before Tax 62 82 (24.6) 189 283 (33.1) Net Income
Slide 31: Balance Sheet - Core
Balance Sheet - Core NT$ Million 2023.09 2022.09 YoY (%) 2023.06 QoQ (%) TOTAL ASSETS 6,975 6,990 (0.2) 7,026 (0.7) Cash 1,395 1,251 11.5 1,619 (13.8) NR & AR 1,215 1,193 1.8 1,232 (1.4) Inventory 1,177 1,251 (5.9) 1,037 13.6 Fixed Asset 1,173 1,126 4.2 1,123 4.4 TOTAL LIABILITIES 3,237 3,443 (6.0)
Slide 32: Dividend
Dividend 2017 2018 2019 2020 2021 2022 Net Income (NT$ mn) 155 66 -120 144 364 277 Cash Dividend (NT$ mn) 91 62 0 144 263 276 Dividend per Share (NT$) 0.56 0.41 0 0.96 1.74 1.8 Payout Ratio (%) 59% 94% 0% 100% 72% 99.6% Cash Yield (%)* 3.7% 2.1% 0.0% 4.6% 9.3% 8.2% *Cash yield is based on K Laser’s
Slide 33: Thank You
Thank You 33