ANALYST MEETING PRESENTATION Aug 10, 2017
ANALYST MEETING PRESENTATIONAug 10, 2017
DISCLAIMER
2
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 itare statements of future estimations with respect to the financial conditions, results ofoperations and businesses, and related plans and objectives. Disclaimer information isbased on management’s current views and assumptions including, but not limited to,prevailing economic and market conditions. These statements involve known andunknown risks and uncertainties that could cause actual results, performance or eventsto differ materially from those in the statements as originally made. Such statements arenot, and should not be constructed as a representation as to future performance of theCompany. In addition, such statements should not be regarded as a forecast orprojection of future performance of the Company. It should be noted that the actualperformance of the Company may vary significantly from such statements in thispresentation.
AGENDA
Strictly confidential 3
1. Q2/2017 Results
2. Status of Rx Automation Project
3. TOG USA, Inc.
4. Q&A
AGENDA 1Q2/2017 Results
Unit: THB million Q2/2016 Growth Q2/2017
Revenue from sales and services 441 +8.0% 477
Gross profits 92(20.8%)
+4.6% 96(20.1%)
Net Income 33(7.5%)
-14.2% 28(5.9%)
EBIT 43(9.7%)
-16.4% 36(7.5%)
EBITDA 80 (18.1%)
-5.3% 74(15.6%)
Q2/2017 RESULTS
5
Unit: THB million 1H/2016 Growth 1H/2017
Revenue from sales and services 965 -3.5% 931
Gross profits 241(25.0%)
-8.8% 220(23.6%)
Net Income 108(11.2%)
-30.6% 75(8.1%)
EBIT 137(14.2%)
-32.2% 93(10.0%)
EBITDA 211(21.9%)
-20.4% 168(18.1%)
1H/2017 RESULTS
6
EUROPE SALES WAS PICKED UP IN Q2
110 108 26 22 27
2015 2016 Q2/15 Q2/16 Q2/17
797 774
203 176 213
2015 2016 Q2/15Q2/16Q2/17
Australia and New Zealand
Asia Pacific
Europe
America
Unit: THB million% represents share of total sales for each region
Middle East and Africa
Strictly confidential 7
337 397
60 88 79
2015 2016 Q2/15Q2/16Q2/17
9 7 3 2 2
2015 2016 Q2/15 Q2/16 Q2/17571 648
110 153 156
2015 2016 Q2/15Q2/16Q2/17
EUROPE SALES WAS AT 2015 LEVEL
110 108 55 65 45
2015 2016 1H15 1H16 1H17
797 774
395 361 389
2015 2016 1H15 1H16 1H17
Australia and New Zealand
Asia Pacific
Europe
America
Unit: THB million% represents share of total sales for each region
Middle East and Africa
Strictly confidential 8
337 397 137 204 157
2015 2016 1H15 1H16 1H17
9 7 5 3 4
2015 2016 1H15 1H16 1H17571 648
275 332 336
2015 2016 1H15 1H16 1H17
EUROPE SALES WAS PICKED UP IN Q2
9
46.2% 43.7% 40.0%50.5%
39.9% 44.7%
31.4% 31.3% 33.5%27.4%
34.7% 32.7%
14.7% 19.0% 20.9% 15.7% 20.4% 17.0%7.6% 6.0% 5.6% 6.5% 5.0% 5.7%
2015 2016 2017E Q2/15 Q2/16 Q2/17
America
Asia/Africa
ANZ
Europe
SIGNIFICANT HIGHER % FROM EUROPE
10
46.2% 43.7% 40.0% 45.6% 37.4% 41.8%
31.4% 31.3% 33.5%31.7%
34.4%36.1%
14.7% 19.0% 20.9% 16.4% 21.5% 17.3%7.6% 6.0% 5.6% 6.3% 6.7% 4.8%
2015 2016 2017E 1H15 1H16 1H17
America
Asia/Africa
ANZ
Europe
SIGNIFICANT HIGHER SALES OF STANDARD
11
34.6% 34.1% 32.0% 33.1% 31.7% 38.4%
33.5% 30.7% 37.6% 36.3% 31.7% 24.9%
26.1% 28.5% 25.4% 25.1% 29.5% 27.5%
5.8% 6.7% 5.1% 5.5% 7.0% 9.2%
2015 2016 2017E Q2/15 Q2/16 Q2/17
Others
Rx
Value-added
Standard
High value-added20-30% margin
Low value-added10-20% margin
140183
140119
130131
3144441477
Q2/16 Q2/17
Others
Rx
Value-added
Standard
KEY DRIVER FOR STANDARD IS NEW PRODUCTS
12
% STANDARD SALES WAS AT 2015 LEVEL
13
34.6% 34.1% 32.0% 33.7% 31.7% 33.4%
33.5% 30.7% 37.6% 33.3% 33.0% 27.1%
26.1% 28.5% 25.4% 27.1% 28.4% 30.8%
5.8% 6.7% 5.1% 5.9% 6.9% 8.7%
2015 2016 2017E 1H15 1H16 1H17
Others
Rx
Value-added
Standard
High value-added20-30% margin
Low value-added10-20% margin
KEY ISSUES OF CASTING BUSINESS
14
• Mold quality issues (Q2: THB 11 mil, YTD: THB 24 mil)– Recently migrated mold production unit in Jan 2017 was in ramp-up capacity and
adjusting its output quality to meet the standard specification.– Unexpected incident of mold damages at casting production units.
HISTORICAL QUARTERLY FINANCIALS
15
380 413 409 428
485 464 428
454 465
402
459 498
523
442 428
541
454 477
75 87 94 87 127 113 93 110 93 87
135 116 150
92 107 136 124
96
18 46 47 39
68 55 37 44 42 41 91
56 75 33 51
92 47 28
Q1/
13
Q2/
13
Q3/
13
Q4/
13
Q1/
14
Q2/
14
Q3/
14
Q4/
14
Q1/
15
Q2/
15
Q3/
15
Q4/
15
Q1/
16
Q2/
16
Q3/
16
Q4/
16
Q1/
17
Q2/
17
Sales Gross Profit Net Profit
Unit: THB million
YEAR-ON-YEAR Q2 FINANCIALS
16
413 464
402 442
477
87 113
87 92 96
46 55 41 33 28
Q2/13 Q2/14 Q2/15 Q2/16 Q2/17
Sales Gross Profit Net Profit
Unit: THB million
AGENDA 2Status of Rx Automation Project
RX AUTOMATION PROJECT UPDATE
Strictly confidential 18
• All machines and equipment have been installed and currently running at full capacity for testing purpose.
• Official commencement of operation is set on 1 Oct 2017 to obtain full tax privileges.
• An application of the additional 2-year corporate tax exemption from investment in automation will be filed after the official commencement of operation.
AGENDA 3TOG USA, Inc.
PROGRESS OF TOG USA, INC.
Strictly confidential 20
• Our business process is expected to be ready for operation in early Oct 2017.
• From the commencement of operation until the end of 2017, TOG USA, Inc. will ensure the service level and minimal mishandling/human errors.
AGENDA 4Q&A
THAI OPTICAL GROUP PCL.
Head Office15/5 Moo 6 Bangbuathong-Suphanburi Rd. LaharnBangbuathong, Nonthaburi, Thailand 11110Tel: (+66) 02 194 1145 to 1146
Sales and Customer Service77/141-142, 33rd Fl. Sinn Sathorn Tower,Krungthonburi Rd. Klongtonsai, KlongsanBamgkok, Thailand 10600Tel: (+66) 02 440 0506 to 0507