Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results August 8, 2023 Tamron Co., Ltd. (Code: 7740) Tamron Co., Ltd.
Slide 2: Contents
Contents III. FY2023 Financial Forecast I. FY2023 Summary 1. FY2023 Financial Forecast 1. 1st Half Summary 2. FY2023 Forecast by Segment 2. FY2023 Forecast 3. Medium-term management plan “Vision 23” ①Photographic Products and its Progress ②Surveillance & FA Lenses (1) Consolidated Results ③Mobility
Slide 3: I. FY 2023 Summary
I. FY 2023 Summary Copyright © Tamron Co., Ltd. All rights reserved. 3
Slide 4: I-1. 1st Half Summary
I-1. 1st Half Summary Business Environment ・Economy is on a gradual recovery trend, despite continued uncertainty due to the prolonged Russia’s invasion of Ukraine, energy problems, high global inflation, interest rate hikes in various countries, etc. ・ The yen has been weakening significantly. (JPY
Slide 5: I-2. FY2023 Overview
Ⅰ-2. FY2023 Overview Business Environment ・ The business environment for the second half remains uncertain due to the following factors: continuing global inflation, the impact of interest rate hike policies. ・ Higher component and material costs by rising prices of resources, and movements to adjus
Slide 6: I-3. Progress of Medium-Term Management Plan Vision 23: Consolidated Results
Ⅰ-3. Progress of Medium-Term Management Plan ”Vision 23” (1) Consolidated Results Vision23:Medium-Term Management Plan (Announced February 2021) Final year First year Second year Original New Actual Target Actual Actual Forecast Forecast FY20 FY23 FY21 FY22 FY23 FY23 Net Sales ￥48.4B. ￥61.0B. Net Sa
Slide 7: I-3. Progress of Vision 23: Trends by Segment
Ⅰ-3. Progress of Medium-Term Management Plan ”Vision 23” (2) Trends by Segment ＜Results of FY22＞ Vision23 Medium-Term Management Plan ◆Surveillance & FA Lenses sales achieved 10 billions of yen, ◆Scale up the business of Surveillance & FA Lenses, Mobility & and automotive lenses sales achieved 5 bil
Slide 8: I-4. Investment strategy & Initiatives to improve corporate value
Ⅰ-4. Investment strategy & Initiatives to improve corporate value Establishment Finance/Capital ROIC significantly exceeded WACC and In anticipation of sustainable growth, of a new further strengthen the production Policy ROE improved factory system of the entire Group ・Respond to medium-to long-ter
Slide 9: II. 1st Half Financial Results
II. 1st Half Financial Results Copyright © Tamron Co., Ltd. All rights reserved. 9
Slide 10: II-1. Consolidated Results for the First Half of 2023
II-1. Consolidated Results for the First Half of 2023 Double-digit increase in each profit due to sales increase and the improvement of gross profit by approx. 3.4%. Net sales were almost in line with the plan. Profits increased by double digits compared to the plan. Forecast Inc/Dec Inc/Dec Act
Slide 11: II-2. 1st Half Performance Variation Factors
II-2. 1st Half Performance Variation Factors Operating income achieved a double-digit increase compared to the previous year even excluding the favorable impact of exchange rate improvement (millions of JPY) Impact of exchange rate on net sales: +1,780 million JPY 6,477 5,671 1,396 (350) (230) (230
Slide 12: II-3. 1st Half Results by Segment: Photographic Products
II-3. 1st Half Results by Segment ①Photographic Products FX Impact Forecast Inc/Dec Inc/Dec Actual Actual vs. 1st H (millions of JPY) (YoY) (vs. Forecast) 1st H FY23 FY22 1st H FY22 *Apr. 28 1st H FY23 Amounts Ratio Amounts Amounts Ratio Net sales 22,737 22,800 23,425 687 3.0% 1,160 625 2.7% Operati
Slide 13: II-3. 1st Half Results by Segment: Surveillance & FA Lenses
II-3. 1st Half Results by Segment ②Surveillance & FA Lenses FX Impact Inc/Dec Inc/Dec (millions of JPY) Actual Forecast Actual vs. 1st H (YoY) (vs. Forecast) 1st H FY23 FY22 1st H FY22 *Apr. 28 1st H FY23 Amounts Ratio Amounts Amounts Ratio Net sales 5,694 5,900 5,432 (262) (4.6)% 600 (467) (7.9)% O
Slide 14: II-3. 1st Half Results by Segment: Mobility & Healthcare Products, Others
II-3. 1st Half Results by Segment ③Mobility & Healthcare Products, Others FX Impact Forecast Inc/Dec Inc/Dec (millions of JPY) Actual Actual vs. 1st H (YoY) (vs. Forecast) 1st H FY23 FY22 1st H FY22 *Apr. 28 1st H FY23 Amounts Ratio Amounts Amounts Ratio Net sales 3,267 3,800 3,894 627 19.2% 20 94 2
Slide 15: III. FY2023 Financial Forecast
III. FY2023 Financial Forecast Copyright © Tamron Co., Ltd. All rights reserved. 15
Slide 16: III-1. FY2023 Financial Forecast
III-1. FY2023 Financial Forecast Double-digit growth in sales and profit in 2H; Double-digit growth in sales and every profit in the full year. (Net sales and operating income achieved about a double-digit increase compared to the previous year even excluding the favorable impact of exchange rate
Slide 17: III-2. FY2023 Forecast by Segment: Photographic Products
III-2. FY2023 Forecast by Segment ①Photographic Products Original Revised Inc/Dec Inc/Dec Actual (YoY) (vs. Forecast) (millions of JPY) Forecast Forecast FY22 FY23 FY23 Amounts Ratio Amounts Ratio Net sales 45,519 47,800 52,000 6,480 14.2% 4,200 8.8% Operating 11,158 11,600 13,500 2,341 21.0% 1,900
Slide 18: Photographic Products - New Models
Photographic Products - New Models (New models from 2020 are mirrorless lenses only) Category Launched in 2020 Launched in 2021 Launched in 2022 Launched Fixed in Jan. Focal 20mm F/2.8 OSD M1:2（F050） Launched in Jul. Launched in Oct. Wide- Launched 17-70mm F/2.8 in Jun. angle VC RXD(Model B070) 20-4
Slide 19: III-2. FY2023 Forecast by Segment: Surveillance & FA Lenses
III-2. FY2023 Forecast by Segment ②Surveillance & FA Lenses Original Revised Inc/Dec Inc/Dec (millions of JPY) Actual (YoY) (vs. Forecast) Forecast Forecast FY22 FY23 FY23 Amounts Ratio Amounts Ratio Net sales 11,236 13,000 11,300 63 0.6% (1,700) (13.1)% Operating 1,399 1,600 900 (499) (35.7)% (700)
Slide 20: III-2. FY2023 Forecast by Segment: Mobility & Healthcare Products, Others
III-2. FY2023 Forecast by Segment ③Mobility & Healthcare Products, Others Original Revised Inc/Dec Inc/Dec (millions of JPY) Actual (YoY) (vs. Forecast) Forecast Forecast FY22 FY23 FY23 Amounts Ratio Amounts Ratio Net sales 6,689 9,200 7,700 1,010 15.1% (1,500) (16.3)% Operating 1,061 1,100 1,100 38
Slide 21: IV. Sustainability and ESG Initiatives
Ⅳ．Sustainability and ESG Initiatives Copyright © Tamron Co., Ltd. All rights reserved. 21
Slide 22: IV-1. Value Creation Process
Ⅳ-１. Value Creation Process 71.0 12.5 17.6％ 14.8％ Copyright © Tamron Co., Ltd. All rights reserved. 22
Slide 23: IV-2. Main initiatives and results
Ⅳ-２. Main initiatives and results Main initiatives Results Reducing CO2 emissions 2022 Target: 6% reduction (compared with FY2015 levels) →2022 Result: 15% reduction E Energy-Saving Initiatives 2022:Start to purchase renewable energy and further improve purchase ratio of the energy. TCFD Initiatives
Slide 24: Expanding the scope of business
Expanding the scope of business Deep cultivation of existing technology field Entry into peripheral technology field Copyright © Tamron Co., Ltd. All rights reserved. 24
Slide 25: V. Information for Reference
Ⅴ. Information for Reference Copyright © Tamron Co., Ltd. All rights reserved. 25
Slide 26: Financial Summary
IV-1. Financial Summary (millions of JPY) Dec 31, Jun 30, Change (vs. previous Inventories 2022 2023 Year-end) Inventories Turn over (Months) 15,000 3.0 Cash & Deposits 29,948 32,394 2,446 2.5 2.4 2.4 Notes & Accounts 11,128 13,156 2,028 10,000 2.0 Receivable 12,833 12,998 13,161 Inventories 12,998
Slide 27: Capital Investment, Depreciation, & Research & Development Expenses
Ⅴ-２. Capital Investment, Depreciation, &Research & Development Expenses Capital Investment & Depreciation Research & Development Expenses Capital Investment （ millions of JPY ） （ millions of JPY ） (Ratio of R&D Expenses Depreciation /Net Sales) Including the new 8,000 factory investment. 8,000 12% （
Slide 28: Cash Flow Situation
IV-3. Cash Flow Situation (millions of JPY) 1st H FY22 FY22 1st H FY23 12,000 Operating CF 9,232 Investing CF 8,000 Free CF 5,939 5,367 Financing CF 3,614 4,000 1,966 292 0 (1,673) (1,222) (2,044) (1,845) (4,000) (2,324) (3,865) (8,000) 1st H FY22 FY22 1st H FY23 Cash Flow from Operating Activities
Slide 29: Cash Dividends Outlook & Key Performance Indicators
Ⅴ-４. Cash Dividends Outlook ＆ Key Performance Indicators Cash Dividends Key Performance Indicators （JPY） Year-End Dividend EPS （JPY） 150 56.3% Interm Dividend 60% 800 ROE 20% Dividend Payout Ratio ROA 16.1% 16.0% 600 15% 100 40% 14.8% 14.8% 33.0% 12.0% 32.8% 11.0% 30.0% 27.8% 90 400 10% 90 10.5% 10.
Slide 30: Impact of Foreign Exchange Rate Fluctuations
IV-5. Impact of Foreign Exchange Rate Fluctuations ①Actual 1st Half FY2023 (millions of JPY) Exchange rate Impact Actual Actual Operating Net sales 1st H FY22 1st H FY23 Income USD 123.15 135.01 1,310 (150) EUR 134.44 145.99 320 260 Others - - 150 110 Total - - 1,780 220 (Impact on previous year per
Slide 31: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for 1st Half of FY2023 and future business strategies. It is not an offer or a solicitation of an offer to buy or sell securities. 2. This material and the information provided verbally in the company's presen