investor presentation · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6%...

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INVESTOR PRESENTATION Analyst Meeting November 10, 2016

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Page 1: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

INVESTOR PRESENTATION Analyst Meeting November 10, 2016

Page 2: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

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 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to differ materially from those in the statements as originally made.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.

Page 3: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

AGENDA

Strictly confidential 3

1. Q3/2016 Results

2. Status of Rx Automation Project

3. Other Developments

4. Q&A

Page 4: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

AGENDA 1

Q3/2016 Results

Page 5: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

Unit: THB million Q3/2015 Growth Q3/2016

Revenue from sales and services 436 -8.2% 400

Gross profits 126

(28.1%) -22.2%

95 (23.8%)

Net Income 90

(20.6%) -42.7%

51 (12.8%)

EBIT 112

(25.6%) -43.9%

63 (15.6%)

EBITDA 148

(34.0%) -33.4%

99 (24.7%)

Q3/2016 RESULTS

5

Page 6: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

Unit: THB million 3Q/2015 Growth 3Q/2016

Revenue from sales and services 1,326 +5.0% 1,393

Gross profits 314

(23.7%) +10.7%

348 (25.0%)

Net Income 174

(13.1%) -8.3%

159 (11.5%)

EBIT 218

(16.5%) -8.7%

199 (14.3%)

EBITDA 327

(24.7%) -5.3%

310 (22.3%)

3Q/2016 RESULTS

6

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HISTORICAL QUARTERLY FINANCIALS

7

380 413 409

428

485 464

428 454 465

402

459

498 523

442

400

75 87 94 87

127 113 93

110 93 87

135 116

150

92 95

18 46 47 39

68 55 37 44 42 41

91 56

75

33 51

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

Sales Gross Profit Net Profit

Unit: THB million

Page 8: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

YEAR-ON-YEAR Q1 FINANCIALS

8

316

409 428

459

400

35

94 93

135

95

(7) 47 37

91

51

Q3/12 Q3/13 Q3/14 Q3/15 Q3/16

Sales Gross Profit Net Profit

Unit: THB million

Page 9: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

SALES CONTRIBUTION BY GEOGRAPHY

140 110 27 32 22

2014 2015 Q3/14 Q3/15 Q3/16

846 797

198 197 162

2014 2015 Q3/14Q3/15Q3/16

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 9

263 337

71 93 94

2014 2015 Q3/14Q3/15Q3/16

7 9 2 2 2

2014 2015 Q3/14 Q3/15 Q3/16

575 571

130 135 148

2014 2015 Q3/14Q3/15Q3/16

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ANZ IS SIGNIFICANTLY HIGHER

10

46.0% 43.7% 39.0% 46.3% 42.9% 37.9%

31.0% 31.3% 30.0%

30.4% 29.4% 34.6%

15.0% 19.0% 19.0%

17.1% 20.7% 22.4%

8.0% 6.0% 12.0% 6.3% 7.0% 5.1%

2014 2015 2016E Q3/14 Q3/15 Q3/16

America

Asia/Africa

ANZ

Europe

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RX PRODUCTS ARE KEY

11

28.8% 33.5% 29.1% 31.8% 34.9% 31.3%

36.1% 33.5% 38.6% 34.3% 35.3%

32.2%

29.9% 27.3% 26.0% 28.0% 24.2% 29.2%

5.2% 5.8% 6.0% 5.8% 5.7% 7.2%

2014 2015 2016E Q3/14 Q3/15 Q3/16

Others

Rx

Value-added

Standard

High value-added 20-30% margin

Low value-added 10-20% margin

Page 12: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

AGENDA 2

Status of Rx Automation Project

Page 13: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

RX AUTOMATION PROJECT UPDATE

Strictly confidential 13

• The project is expected to be completed for commissioning

within the approved budget from the Board of Directors.

• The project received the official approval from Board of

Investment (5-year corporate tax exemption).

• An application of the additional 2-year corporate tax exemption

from investment in automation will be filed by the end of 2016.

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CURRENT STATUS: GRINDING/SURFACING AREA

Strictly confidential 14

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CURRENT STATUS: GRINDING/SURFACING AREA

Strictly confidential 15

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CURRENT STATUS: MEZZANINE’S WALKWAY

Strictly confidential 16

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CURRENT STATUS: MEZZANINE’S GARDEN VIEW

Strictly confidential 17

Page 18: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

CURRENT STATUS: SCHNEIDER MODULO

Strictly confidential 18

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CURRENT STATUS: FRAMES/LENSES STORAGE

Strictly confidential 19

Page 20: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

CURRENT STATUS: FRAMES/LENSES STORAGE

Strictly confidential 20

Page 21: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

TIMELINE FOR RX AUTOMATION PROJECT

W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4

Building Construction

1. Building (New)

2. Building ( renovate)

Surfacing line

Swarf Room

HardCoat

AR-Coat

Rx Store

Glazing Line

Apr ' 17OCT ' 16 NOV ' 16 DEC ' 16 Jan ' 17 Feb ' 17 Mar ' 17Items

• New building construction and Swarf are 2 weeks late.

• Delivery of the remaining items is unchanged.

• Expected commercial operation is unchanged in Mar/Apr 17.

Ramp-up 1

Ramp-up 2

Page 22: INVESTOR PRESENTATION · 2017. 2. 24. · 28.8% 29.1%33.5% 31.8% 34.9% 31.3% 36.1% 33.5% 38.6% 34.3% 35.3% 32.2% 29.9% 27.3% 26.0% 28.0% 24.2% 29.2% 5.2% 5.8%6.0% 5.7% 7.2% 2014 2015

AGENDA 3

Other Developments

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THE NEW PRODUCT BRANDING IN THAILAND

Strictly confidential 23

• TOG launched the new product branding for Thailand market in

Oct 2016 at the annual sales event of NST, the sole distributor of

TOG products in Thailand.

• The objectives of the new product branding are as follows:

– Promote “TOG” as a mother brand.

– Regroup product brands for simplicity and ease of understanding.

– Create each brand’s unique mood & tone for different targeted consumers.

– Maintain branding consistency for all markets.

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BRAND MOOD & TONE

24

Single Vision Brand Progressive Design Brand

Advanced Design Brand Office Design Brand

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TOG’S PRODUCT BRAND PORTFOLIO

25

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SERIES OF BRANDS

26

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MARKETING MATERIALS

27

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MARKETING MATERIALS

28

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MARKETING MATERIALS

29

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MARKETING MATERIALS

30

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ANNUAL SALES EVENT OF NST

31

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AGENDA 4

Q&A

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APPENDIX

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TOG’S MARKETING ACTIVITIES IN US MARKET

34

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THAI OPTICAL GROUP PCL.

Head Office 15/5 Moo 6 Bangbuathong-Suphanburi Rd. Laharn

Bangbuathong, Nonthaburi, Thailand 11110

Tel: (+66) 02 194 1145 to 1146

Sales and Customer Service 77/141-142, 33rd Fl. Sinn Sathorn Tower,

Krungthonburi Rd. Klongtonsai, Klongsan

Bamgkok, Thailand 10600

Tel: (+66) 02 440 0506 to 0507