tog oppday 2014/q2
DESCRIPTION
TOG Oppday 2014/Q2TRANSCRIPT
Thai Optical Group PCL.
Opportunity Day Tuesday, Sep 9th, 2014
The Stock Exchange of Thailand
DISCLAIMER
The following presentation may contain forward looking statements by the Management Team of Thai Optical Group Public Company Limited (the Company), related to financial or other tendency for future periods, compared with the results for previous periods.
Some of the statements contained in this presentation that are not historical facts but it are statements of future estimations with respect to the financial conditions, results of operations and businesses, and related plans and objectives. Disclaimer information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be constructed as a representation as to future performance of the Company. In addition, such statements should not be regarded as a forecast or projection of future performance of the Company. It should be noted that the actual performance of the Company may vary significantly from such statements in this presentation.
2
Industry trend.
Mission and strategy
Update Yr 2014 and H1 /2014.
Estimation 2014.
Key improvements.
Review plan and look into future.
3
Market size and potential
Global population 7.2 billions
100%
1.8 billions current wearers ( 25%)
Use Prescription spectacles CAGR +3%
60%
Need
Vision
Correction
4.3 Billions
CAGR +2%
2.5 billions potential wearers (35%)
Use non-prescription eyewear
Or use nothing
untapped market
4
Breakdown Lens Raw materials shares
Total = 892 Million pcs, estimated Source: PPG + estimated data
18
131
147
904
world lens consumption in 2014 forecasted
other hi-impact Poly Mineral Plastic
Mineral
Total = 1,200 Million pcs, forecasted
Plastic
1.5-mid-hi-indexes
CAGR +7%
Plastic
1.5-mid-hi-indexes
Mineral
Poly
Other hi-impact
CAGR +13% Other hi-impact
5
Corporate strategy
Efficient use of resources
Supply chain
Oriented accounts
Balance cost efficient-Long term growth
6
Operational and management efficiency
Corporate Social responsibility Mission: We provide complete solutions of vision correction products and services at effective cost and international standard quality.
• Choices of digital surface optic design
• Punctual supply
• Continuous cost effective.
• Innovative solution
• Support competitive advantage.
• Potential volume business.
• Good combination of lens properties best suit its key function.
• Cost effective.
• Cost effective.
• Reliable supply. Basic lens materials
casting
Advance lens materials casting
Individual prescription lenses.
Prototype manufact
uring
7
Core business and value offering
Corporate relationship style
Be resourceful manufacturer.
Strive for opportunity to team up in innovative projects which leads to strategic volume supply.
Price/
Quality Benefit partners’ business value.
Surpass industrial standards quality.
Brand Seek opportunity to build up brand awareness in high opportunity areas, ex; Thailand - Vietnam.
Corporate Characters
8
Sales value by geography: H1/2014
3% -
46% up 21%
15% up 16%
31% up 18%
8% up 29%
Compare H1/2014 vs H1/2013
9
10
EU AU
NZ
As
Am
H1/2013 H1/2014
32 46
7
0
46
31
15
8
Rx Val Std
11
Investment
Casting facilities
Invest
Productivity
Improvement
87
Cost of Goods Sold Record
H2/2014 + exchange rate + Products mixed + Productivity - Price decreases
32.50
THB/USD
31.50
THB/USD
31
THB/USD
30.50
THB/USD
32.32
THB/USD
30.50
THB/USD
12
Av: 75%
32.5
THB/USD
13
8 % 10% -10 %
11 %
-22 %
26 %
14 %
17 % GROWTH Rate
* New
14
F
M THB
Year
(excluding income from trading-others income categories)
17% Original plan
Up 9%
New plan
Up 17%
Rx
Val
Sales Breakdown by Product Categories
15
AV H1/2014
Rx
Val
Std
5%
31%
37%
27%
16
(Consolidated) Year 2012 Year 2013 Q2/2013 Q1/2014 Q2/2014
EBITDA 22% 21% 23% 25% 23%
Gross Profit (Loss) Margin 17% 21% 21% 26% 24%
Net Profit (Loss) Margin 11 % 9% 11% 14% 12%
ROE 11% 10% 9% 10% 12%
ROA 11 % 10% 9% 10% 12% Ratio of Liability to Capital (Times) 0.29 0.21 0.25 0.22 0.26 Earnings (Loss) per Share (Baht) 0.35 0.33 0.10 0.14 0.12
Dividend Payout Ratio 77% 86% n/a n/a n/a
Book Value per Share (Baht) 3.24 3.44 3.40 3.65 3.57
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Productivity improvement
• Capacity increase without major investments, casting:
– Increase by 50% for casting within a period of time.
• Production cost reduction:
– Targeting 5% down annually for Rx.
– Targeting 3% - 5% down annually for casting.
18
Forecast
19
302%
Forecast
20
21
Incremental growth CAGR 6%
-diversified existing products-business, mid-high indexes -productivity improvement -small to mid sizes retails & wh. -Thai - AEC - alliances
1900
2500
AGR
5%
AGR
3%
AGR
7.5% 17%
22
Distribution channels of each Standard Category : 20%-Manufacturers, 15%-Distributors and Labs, 65%-Retails
Premium Category: 40%-Manufacturers, 30%-Distributors and Labs, 30%-Retails
Rx Category: Less than 1%-Manufacturers, 30%-Distributors, 70%-Retails
Distributors
Distributors
Distributors
Retails
Retails
Retails
Manufacturers Manufacturers
Sales breakdown by geography projected 2014
23
30%
15%
8%
47%
Sales breakdown by geography projected 2019
24
28%
20%
9%
43%
High impact resistance lens mkt
TRIVEX-Tribrid Mid-High indexes mkt
Potential business TRIVEX
25
AS SV
Potential in US market
Replacement
Poly. Mid. 1.5. High
Potential business high index
26
Super thin and flat
Wider distortion free areas
DUO
Conventional lens DUO
DUO DUO
Forecast
27
Potential business 2014 - 2019
28
More than 6 times stronger
than conventional 1.6
Pass US-FDA without primer coat
Hi-Technology
Hybrid molecule
structure
Russian version poster
Productivity improvement makes closer gaps
WELCOME TO EXPERIENCE OUR PRODUCTS AND SERVICES
Website: www.thaiopticalgroup.com
Email: [email protected]
Tel: 02-4400506 ext 112 or 113
Fax: 02-8620705
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