Slide 1: Summary of Consolidated Financial Results for the Second Quarter of F.Y. 2020
Summary of Consolidated Financial Results for the Second Quarter of F.Y. 2020 (Jan.1 to Jun.30, 2020) OPTEX GROUP CO., LTD. August 6, 2020 （Tokyo Stock Exchange Market 1st Section:#6914） <Disclaimer> The forward-looking statements, including OPTEX CO., LTD.’s operating results, strategies, and busin
Slide 2: Key Points of Financial Results from 2Q of F.Y. 2020
Key Points of Financial Results from 2Q of F.Y. 2020 ・Net sales were -11% year on year, reflecting sluggish growth due to lockdowns and travel restrictions caused by COVID-19. ・Operating profit was -40% year on year due to a decline in gross profit, despite cost reduction efforts and other measures.
Slide 3: Summary of Consolidated Financial Results for the Second Quarter of F.Y. 2020
Summary of Consolidated Financial Results for the Second Quarter of F.Y. 2020 Operating Results F.Y.2019 2Q F.Y.2020 2Q Percent Change (Unit: million yen) (1-6) Results (1-6) Results Change Net sales 18,593 16,636 -1,957 -10.5% Operating income 1,315 783 -532 -40.4% （Operating income Ratio） （7.1%） （
Slide 4: Quarterly performance - Consolidated Net Sales
Quarterly performance - Consolidated Net Sales (Year- on-year) 9,926 9,285 9,308 8,998 249 8,801 236 279 EMS/Other 362 219 2,555 7,835 Business 2,305 2,408 2,181 2,325 195 MVL Business 2,188 1,838 1,755 1,789 1,758 1,562 FA Business 1,821 SS Business 4,989 4,832 5,284 4,697 4,695 3,631 F.Y. 2019 2Q
Slide 5: Comparison of Financial Results between Segments
Comparison of Financial Results for the Second Quarter of F.Y. 2020 between Segments Operating F.Y. 2019 2Q（1-6）Results F.Y. 2020 2Q（1-6）Results Results Operating income Operating (Unit: Percent income Percent Net sales （Operating Net sales million yen) income Ratio） Change （Operating Change income
Slide 6: Factors of change in Net Sales (Year-on-year)
Factors of change in Net Sales （Year- on-year） SS 18,593 Business -1,294 FA Impact of MVL EMS Other Exchange Business Business -160 Business Business Rate -170 -234 16,636 -68 -31 F.Y. 2019 Consolidated Net Sales F.Y. 2020 2Q（1-6）Results -¥1,957million 2Q（1-6）Results Copyright (C) 2020 OPTEX GROUP C
Slide 7: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income （Year- on-year） Sales Decrease 1,315 -930 Impact of Increase Exchange in Rate Expenses +74 783 +460 Impact of Exchange COS% Up Rate +26 -162 Selling, general and Gross operating income administrative Expenses F.Y. 2019 Consolidated Operating F.Y. 2020 2Q（1-6）Res
Slide 8: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region F.Y. 2020 2Q（1-6）Results Sales decreased due to the sluggish sales of outdoor intrusion detectors for security companies and large-scale critical Japan facilities. Sales decreased, reflecting the sluggish sales of outdoor intrusion detectors
Slide 9: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region F.Y. 2020 2Q（1-6）Results Sales decreased, reflecting sluggish sales of automatic door sensors partly due to investment Japan restraints that occurred to the retail industry. Sales of automatic door sensors to major customers in North A
Slide 10: Expansion of Demand for Non-Contact Products with Respect to Automatic Doors
Expansion of Demand for Non-Contact Products with Respect to Automatic Doors A Clean Switch door sensor that is activated without physical touch A sanitary and efficient shutter sensor Considering the hygiene of workplaces Activates shutters for factories and in which the product is used and contrib
Slide 11: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Region F.Y. 2020 2Q（1-6）Results Sales increased slightly due to the strong sales of image sensors for the food industry Japan despite sluggish growth in capital investment demand in the automobile-related industry. Sales declined significantly, refle
Slide 12: Business by Segment - Machine Vision Lighting (MVL) Business
Business by Segment - Machine Vision Lighting (MVL) Business Region F.Y. 2020 2Q（1-6）Results Sales decreased due to the restrictions on sales activities in 2Q despite the strong sales related to capital Japan investment in 5G. AMERICAs Sales decreased due to lockdowns in 2Q despite the continued pro
Slide 13: F.Y. 2020 Consolidated Earnings Projection
F.Y. 2020 Consolidated Earnings Projection F.Y. 2019 F.Y. 2020 Revised Percent Operating Results Change (Unit: million yen) （1-12）Results Projections Change （Announced on Jul. 13) Net sales 37,517 34,500 -3,017 -8.0% Operating income 2,856 1,800 -1,056 -37.0% （Operating income Ratio） （7.6%） （5.2%） O
Slide 14: Revisions to the FY2020 Dividend Projection
Revisions to the FY2020 Dividend Projection Year-end dividend（¥） Interim dividend（¥） 90.4 Dividend payout ratio（%） 32.5 30 30 27.5 22.5 15 15 15 41.2 15 54.1 28.2 28.6 12.5 17.5 15 15 *The amount includes 12.5 10 a commemorative dividend of 2.5 yen 2016 2017 2018 2019 2020（Plan） ROE 7.4% 12.6% 12.3%
Slide 15: Growth Strategy
Growth Strategy Copyright (C) 2020 OPTEX GROUP CO., LTD. 15
Slide 16: From sales of products to sales of solutions and services
Initiatives to change business models From sales of products to sales of solutions and services (Offering solutions) Copyright (C) 2020 OPTEX GROUP CO., LTD. 16
Slide 17: Security sensors
Security sensors Copyright (C) 2020 OPTEX GROUP CO., LTD. 17
Slide 18: Differences in Alarm Monitoring Systems Worldwide
Differences in Alarm Monitoring Systems Worldwide Security company Installing equipment Monitoring Guard visit One-stop Japan service Installation service Security company Police Europe provider/agent Installing Monitoring Rushing to and equipment the scene Task system the U.S. Copyright (C) 2020 OP
Slide 19: Problems in Existing Systems for Outdoor Sensors
Problems in Existing Systems for Outdoor Outdoor sensors Plants and trees Delivery Animal Burglar swaying in the wind operator 90% of calls do not require Police must rush to the dispatch of personnel. the scene Copyright (C) 2020 OPTEX GROUP CO., LTD. 19
Slide 20: Changing Business Models
Changing Business Models Sales of Sales of solutions and services products （Deployed in Europe and United States） Unnecessary police dispatches due to false alarms can be reduced Monitoring company Control panel （Security company） Outdoor security Cloud sensor Gateway ゲート ウェイ Surveillance camera Out
Slide 21: Factory Automation sensors
Factory Automation sensors Copyright (C) 2020 OPTEX GROUP CO., LTD. 21
Slide 22: Changing Business Models: Remote monitoring and predictive maintenance
Changing Business Models Sales of products Sales of solutions and services Enables remote monitoring and predictive maintenance Releasing Industry 4.0-ready IO-Link sensors IO-Link A communication technology for Information interactive communication network level between the sensor and the high-orde
Slide 23: Machine Vision Lighting
Machine Vision Lighting Copyright (C) 2020 OPTEX GROUP CO., LTD. 23
Slide 24: Changing Business Models: Proposal of total solutions
Changing Business Models Sales of products Sales of solutions and services Proposal of total solutions is possible MV lighting and power AI vendors Robot manufacturers source manufacturers Camera manufacturers Lens Non- manufacturers defective Missing ↓ Imperfection Testing room AI laboratory Roboti
Slide 25: https://www.optexgroup.co.jp/en/
https://www.optexgroup.co.jp /en /
Slide 26: Company Overview
Company Overview Copyright (C) 2020 OPTEX GROUP CO., LTD. 26
Slide 27: Company Overview
Company Overview Company Name OPTEX GROUP CO., LTD. Location Shiga Otsu, Japan The OPTEX Group Established May 25, 1979 is an integrated Capital 2,798 million JPY manufacturer of sensors. Sales 37,517 million JPY To see things what eyes cannot see, that is our business ! Operating Profit 2,856 milli
Slide 28: Trends in Consolidated Performance
Trends in Consolidated Performance 40,113 37,504 37,517 34,500 31,027 27,793 25,678 4,885 4,989 23,582 20,916 （13%） （12%） 20,699 18,502 3,015 2,856 2,661 17,395 3,161 15,124 2,558 （10%） 2,108 （11%） （8%） （13%） （10%） 1,800 1,705 1,677 1,398 （9%） 620 （5%） （10%） （9%） （7%） （4%） 2008 2009 2010 2011 2012 2
Slide 29: Company Overview _ History
Company Overview _ History 1979 Established OPTEX CO., LTD. 1980 Developed the world's first Automatic Door Sensors with far-infrared Founding members 1985 Founded a subsidiary in California, U.S.A. 1991 Made the company's stock public. 1996 Developed Outdoor Crime Prevention Sensors 2001 Listed on
Slide 30: Company Overview _ Holding Company Structure
Company Overview _ Holding Company Structure Holding Company OPTEX GROUP CO., LTD （Tokyo Stock Exchange Market 1st Section：#6914） OPTEX CO.,LTD. OPTEX FA CO., LTD. CCS Inc. Three Ace Co., Ltd. OPTEX MFG Co., Ltd. O'PAL OPTEX CO.,LTD. Sales & Development Sales & Development Sales, Development Manufac
Slide 31: Company Overview _ Data
Company Overview _ Data Sales by Product Category Sales by Region EMS/ Others Asia/ 3% Oceania 12% MVL AMERICAs 25% SS 13% 37.5 Security Sensors 37.5 Japan billion yen 35% billion yen 45% (F.Y.2019) (F.Y.2019) SS FA Automatic EMEA 19% SS Door Sensors 30% Others 12% 6% EMEA : Europe, the Middle East,
Slide 32: Company Overview _ Global Market Share
Company Overview _ Global Market Share Global niche No.1 Security Automatic door Machine vision sensors sensors lighting 40% Intrusion detector 30% Automatic door 30% LED lighting for outdoor sensor for inspection Infrared sensor Sensors for large-scale critical facilities Push plate LED lighting sy
Slide 33: Business Domain _ Security sensors
Business Domain _ Security sensors Largest market share in the world for intrusion detectors for outdoor use Residential home・Commercial facilities Residence Used car dealer [Security company] Alarm Guard visit service signal Outdoor sensors Rush to the scene Police rush in Europe and the United Sta
Slide 34: Business Domain _ Automatic door sensors
Business Domain _ Automatic door sensors Share in the domestic market: Over 50% Share in the overseas market: Over 20% Shinkansen (“bullet train”) Over 60% share In 1980, we applied the far-infrared ray, automatic doors of the convenience stores until then mainly used for military purposes, to autom
Slide 35: Business Domain _ Factory Automation sensors
Business Domain _ Factory Automation sensors Provision of sensors for factory automation which help automate factory production processes and save labor Displacement sensors Image sensors Photoelectric sensors Products for the semiconductor and Products for the three-item industries Products for the
Slide 36: Business Domain _ Machine Vision Lighting
Business Domain _ Machine Vision Lighting CCS produces lighting for image inspection using LED since 1993. Lighting for image inspections * When producing something at a plant, each stage of work requires an “inspection” process. Photos or images of the inspection targets are Bearing raised characte
Slide 37: Environment Social Governance
ESG’s Efforts _ We have been making efforts to improve our corporate value by responding positively to ESG tasks. Environment Social Governance Products and services helping Relationships with local Corporate governance resolve environment issues communities Sensors for shutters that help reduce ene