Slide 1: Summary of Consolidated Financial Results for Second Quarter of F.Y. 2016
Summary of Consolidated Financial Results for Second Quarter of F.Y. 2016 (Jan.1 to Jun.30, 2016) OPTEX.CO., LTD. August 4, 2016
Slide 2: Agenda
Agenda 1. F.Y. 2016 Overview of Consolidated Financial Results for First Half 2. F.Y. 2016 Overview by Segment and Region 3. F.Y. 2016 Full-year Consolidated Earnings Projection 4. Transition to Holding Company Organization as of Jan. 1st, 2017 Copyright (C) 2016 OPTEX CO., LTD. 2
Slide 3: Agenda
Agenda 1. F.Y. 2016 Overview of Consolidated Financial Results for First Half 2. F.Y. 2016 Overview by Segment and Region 3. F.Y. 2016 Full-year Consolidated Earnings Projection 4. Transition to Holding Company Organization as of Jan. 1st, 2017 Copyright (C) 2016 OPTEX CO., LTD. 3
Slide 4: Overview of Consolidated Financial Results for First Half of F.Y. 2016
Overview of Consolidated Financial Results for First Half of F.Y. 2016 （Note） F.Y. 2015 First half F.Y. 2016 First half F.Y. 2016 First Year-to-year Compared with start- Revised first half Results half Results comparison of-year plan（※） （Unit: Million yen ） Lower row : Composition start-of-year plan
Slide 5: Factors behind revised first half projections of F.Y. 2016
Factors behind revised first half projections of F.Y. 2016 (compared with start-of-year plan) (Revised interim period projections released on July 22) [Net Sales] Sales in existing business segments struggled to grow Security Sensors…（Japan）Sales of intrusion detectors for outdoor slowed as large-vo
Slide 6: Quarterly performance - Consolidated Net Sales (Year-on-year)
Quarterly performance - Consolidated Net Sales (Year- on-year) (Unit: million yen) 8,000 6,944 7,010 6,918 6,728 7,137 Little change in existing 6,483 6,584 6,034 6,217 6,419 businesses 6,000 First half First half ・Factory Automation Business was strong 13,928 13,003 ・No progress in Security, Automa
Slide 7: Quarterly performance - Consolidated Profit (Year-on-year)
Quarterly performance - Consolidated Profit (Year- on-year) (Unit: million yen) Year-on-year decrease for each indicator ・Operating income -8.3% Because of impact of exchange rate, Sales and gross profit decrease. ・Ordinary income -33.1% ・Profit attributable to owners of parent -32.6% Reflects forei
Slide 8: Quarterly performance - Consolidated SG&A expenses (Year-on-year)
Quarterly performance - Consolidated Selling, general and administrative expenses (Year- on-year) (Unit: million yen) 3,500 Others R&D Expense 3,000 Basically unchanged 2,500 compared with prior year 2,000 Year-to-year comparison（First half） 2,659 2,515 2,362 2,359 2,366 2,389 2,319 2,443 Selling, g
Slide 9: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income (Year- on-year) COS% Down +304 Impact of (Unit: million yen) Exchange Rate Factor 2 Expense Decrease +272 +39 Factor 8 Factor 5 Factor 1 Factor 3 Factor 4 Factor 6 Sales Decrease Factor 7 -144 R&D Expense Impact of Increase Exchange Rate -21 -411 1,632 1,497 Per
Slide 10: Agenda
Agenda 1. F.Y. 2016 Overview of Consolidated Financial Results for First Half 2. F.Y. 2016 Overview by Segment and Region 3. F.Y. 2016 Full-year Consolidated Earnings Projection 4. Transition to Holding Company Organization as of Jan. 1st, 2017 Copyright (C) 2016 OPTEX CO., LTD. 10
Slide 11: Business by Segment - Security Sensors
Business by Segment - Security Sensors Results 2016 First half Japan ：Sales of intrusion detectors for outdoor for general facilities struggled to move higher because of multiple factors, including end to current cycle of large-scale projects and period for switching from old to new products. AMER
Slide 12: Business by Segment - Automatic Door Sensors
Business by Segment - Automatic Door Sensors Results 2016 First half Japan ：Sheet shutter sensor sales were robust. Sales of automatic door sensors exhibited a recovery trend from 1Q to 2Q. AMERICAs：OEM sales to leading automatic door manufacturers were unchanged, as the period overlapped the timi
Slide 13: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Results 2016 First half Japan ：Sales of organic EL, solar panels, semiconductors, rechargeable batteries, LED lighting for quality control inspection for the electronic components industry, Color Vision sensors and displacement sensors were all str
Slide 14: Topics: Connection subsidization of CCS Co., Ltd.
Topics Connection subsidization of CCS Co., Ltd. of Machine vision LED light world share No. 1 (May, 2016 completion) OPTEX Group × Industry’s top class of LED Strengthen development of LED lighting lighting systems for image processing for image processing LED lighting LED lighting Improve inspecti
Slide 15: CCS Inc. Company Profile
CCS Inc. Company Profile Company Name CCS Inc. JASDAQ 6669 Fiscal year-end: July 31 （Change fiscal year-end to December 31 from the 24th fiscal period.） Established October, 1993 Location Head Office：Kamigyo-ku, Kyoto Japan：10 bases Overseas：10 bases Chief Executive Officer Director, President and C
Slide 16: Agenda
Agenda 1. F.Y. 2016 Overview of Consolidated Financial Results for First Half 2. F.Y. 2016 Overview by Segment and Region 3. F.Y. 2016 Full-year Consolidated Earnings Projection 4. Transition to Holding Company Organization as of Jan. 1st, 2017 Copyright (C) 2016 OPTEX CO., LTD. 16
Slide 17: Full-year Consolidated Earnings Projection for F.Y. 2016
Full-year Consolidated Earnings Projection for F.Y. 2016 Revised consolidated full-year projection figures for the fiscal year ending December 2016, 2016 (From Jan. 1 to Dec. 31, 2016) (Unit: million yen) Year-to-year Compared with （Note） F.Y. 2016 start- F.Y. 2016 comparison Revised plan（※） Revised
Slide 18: Key points of full-year consolidated earnings projections for F.Y. 2016
Key points of full-year consolidated earnings projections for F.Y, 2016 [Change in assumed exchange rates during second half (July – December)] 「1USD = ¥120 → ¥100」 「1GBP = ¥170 → ¥130」 「1EUR = ¥130 → ¥110」 [Net Sales, Operating Income] Revised full-year plans for Sensing Products Business Security
Slide 19: Effect of exchange rates
Effect of exchange rates Mean exchange rate （Unit: yen） 2015 First half 2016 First half 2016 start-of-year 2016 second half Rate of Change Results Results plan revised figures JPY／USD 120.23 111.81 -7.0% 120.00 100 JPY／GBP 183.29 160.20 -12.6% 170.00 130 JPY／EUR 134.17 124.62 -7.1% 130.00 110 Im
Slide 20: Full-year Consolidated Earnings Projection for F.Y. 2016
Full-year Consolidated Earnings Projection for F.Y. 2016 (Unit: million yen) (Machine Vision Lighting Business) CCS Inc. & Gardasoft Vision Ltd. Includes second half net sales of ¥5.161 million 20,000 18,997 5,000 Topics 4,000 15,000 13,928 13,865 13,161 13,003 12,454 12,517 11,128 ・Growth of existi
Slide 21: Agenda
Agenda 1. F.Y. 2016 Overview of Consolidated Financial Results for First Half 2. F.Y. 2016 Overview by Segment and Region 3. F.Y. 2016 Full-year Consolidated Earnings Projection 4. Transition to Holding Company Organization as of Jan. 1st, 2017 Copyright (C) 2016 OPTEX CO., LTD. 21
Slide 22: Transition to Holding Company Organization
・OPTEX FA is being a wholly owned subsidiary utilizing stock exchange system ・Changing corporate trade name ・Changing organization structure Copyright (C) 2016 OPTEX CO., LTD. 22
Slide 23: Outline of Transition to the Holding Company Structure
Outline of Transition to the Holding Company Structure as of Jan. 1st, 2017 Before making the transition to After making the transition to the new organization structure the new organization structure （Dec. 31st, 2016） （Jan. 1st, 2017） （At present） Holding Company OPTEX Changing Company OPTEX GROUP
Slide 24: Main Function of the Holding Company & the Operating Company
Main Function of the Holding Company & the Operating Company as of Jan. 1st, 2017 After making the transition to Holding Company the new organization structure → （Jan. 1st, 2017） Streamlined Structure Group Growth Strategies & The units which promotes the efficient use of management Holding Comp
Slide 25: Five Aims for Transition to the Holding Company: Next Generation
Five Aims for Transition to the Holding Company as of Jan. 1st, 2017 Keyword １．Shifts to Managements of the Next Generation ・Cultivation of the next & the following generation ・Innovation of the organization & culture Copyright (C) 2016 OPTEX CO., LTD. 25
Slide 26: Five Aims for Transition to the Holding Company: Corporate Governance
Five Aims for Transition to the Holding Company as of Jan. 1st, 2017 Keyword ２． Strengthening Corporate Governance • Allocation optimization of management resources • M&A • Quick management • Expeditious reorganization Copyright (C) 2016 OPTEX CO., LTD. 26
Slide 27: Five Aims for Transition to the Holding Company: Collaboration
Five Aims for Transition to the Holding Company as of Jan. 1st, 2017 Keyword 3． Strengthening Corporate Governance • Collaborative engineering • Collaborative sales/marketing • Collaborative production ･･･ with multiple thinking & action Copyright (C) 2016 OPTEX CO., LTD. 27
Slide 28: Five Aims for Transition to the Holding Company: Matrix Organization
Five Aims for Transition to the Holding Company as of Jan. 1st, 2017 Keyword ４．Effective Management of Group’s Matrix Organization • Strengthen and unify group matrix functions • Strengthen and communalize supporting systems such as IT, intellectual ５． Keyword property … and so on Copyright (C) 2016
Slide 29: Five Aims for Transition to the Holding Company: Team Spirit
Five Aims for Transition to the Holding Company as of Jan. 1st, 2017 Keyword ５．To foster Unity Team Spirits of Entire Group • Respect for independence • Harmonization of centrifugal force & centripetal force • Flattening relations • Enhance, compete & grow each other • Organic integration Copyright
Slide 30: Purpose of OPTEX Group
Purpose of OPTEX Group as of Jan. 1st, 2017 Continuous Growth and Creation of Global Niche No. 1 Business Copyright (C) 2016 OPTEX CO., LTD. 30
Slide 31: Group Management Structure after the Transition to the Holding Company
Group Management Structure after the Transition to the Holding Company as of Jan. 1st, 2017 Holding Company Chairman, President and CEO Toru Kobayashi President and COO Isamu Oguni OPTEX GROUP CO.,LTD. Executive Director and CFO Akira Higashi （Tokyo Stock Exchange Market Director Toru Kamimura 1st S
Slide 32: Thank You.
Thank You.
Slide 33: www.optex.co.jp
www.optex.co.jp