1. Thai Optical Group PCL. Opportunity Day Tuesday, Sep 9th, 2014 The Stock Exchange of Thailand
2. 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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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
3. Industry trend.
Mission and strategy
Update Yr 2014 and H1 /2014.
Estimation 2014.
Key improvements.
Review plan and look into future.
3
4. 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
5. 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
6. 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.
7. •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 manufacturing
7
Core business and value offering
8. 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
9. 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. 10
EU
AU
NZ
As
Am
H1/2013
H1/2014
32
46
7
0
46
31
15
8
17. (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
17
18. 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
22. 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
28. 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
29. WELCOME TO EXPERIENCE OUR PRODUCTS AND SERVICES
Website: www.thaiopticalgroup.com
Email: ir@thaiopticalgroup.com
Tel: 02-4400506 ext 112 or 113
Fax: 02-8620705
29