Optex Group Company Limited · TSE:6914
Optex — Q2 2021 Earnings Presentation
38 slides from Optex's earnings presentation, Aug 6, 2021
Slide 1: Summary of Consolidated Financial Results for the Second Quarter of F.Y. 2021
Summary of Consolidated Financial Results for the Second Quarter of F.Y. 2021 (Jan.1 to Jun.30, 2021) OPTEX GROUP CO., LTD. August 6, 2021 （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. 2021
Key Points of Financial Results from 2Q of F.Y. 2021 - Net sales were +37% year on year, reflecting growth in existing businesses(+26%) and effects from the consolidation of a new operating company (Sanritz Automation Co., Ltd.). - Operating income were +222% year on year due to a significant decrea
Slide 3: Summary of Consolidated Financial Results for the Second Quarter of F.Y. 2021
Summary of Consolidated Financial Results for the Second Quarter of F.Y. 2021 Operating Results F.Y.2020 2Q F.Y.2021 2Q Percent Change (Unit: million yen) (1-6) Results (1-6) Results Change Net sales 16,636 22,750 +6,113 36.7% Operating income 783 2,520 +1,737 221.8% （Operating income Ratio） （4.7%）
Slide 4: Quarterly performance - Consolidated Net Sales
Quarterly performance - Consolidated Net Sales (Year- on-year) 11,776 EMS/Other Business 10,974 301 271 772 9,668 977 IA Business(IPC) 8,801 311 2,943 8,542 219 7,835 237 2,722 IA Business(MVL) 2,382 2,483 195 2,007 2,307 2,697 IA Business(FA) 2,013 2,106 1,562 1,911 1,821 SS Business 4,537 4,898 5,
Slide 5: Comparison of Financial Results for the Second Quarter of F.Y. 2021 between Segments
Comparison of Financial Results for the Second Quarter of F.Y. 2021 between Segments Operating F.Y. 2020 2Q（1-6）Results F.Y. 2021 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） Impact of IA EMS Other Exchange Business Business Business Rate +506 22,750 +3,925 +142 +19 SS IPC Business （+1,749) +1,522 16,636 F.Y. 2020 Consolidated Net Sales F.Y. 2021 2Q（1-6）Results +¥6,113 million 2Q（1-6）Results Copyright (C) 2021 OPTEX GROUP CO
Slide 7: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income （Year- on-year） Sales Increase Increase in Costs +3,684 -1,212 Impact of Increase Exchange in Rate Expenses +416 -1,029 Impact of Exchange Rate -122 2,520 783 Selling, general and Gross operating income administrative Expenses F.Y. 2020 Consolidated Operating F.
Slide 8: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region F.Y. 2021 2Q（1-6）Results Sales increased, reflecting steady sales for security companies and large-scale critical Japan facilities. Sales rose significantly, reflecting solid sales for general housing units and offices, and large- AMERICAs s
Slide 9: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region F.Y. 2021 2Q（1-6）Results Sales increased, driven by steady sales to automatic door dealers on the back of firm demand Japan from stores handling daily necessities and demand for sensors for non-contact applications. AMERICAs Sales rose
Slide 10: Business by Segment - IA Business (FA)
Business by Segment - IA Business(FA) Region F.Y. 2021 2Q（1-6）Results Sales increased substantially, reflecting solid sales related to capital investment in electric Japan devices, electronics and semiconductors as well as in the food industry. EMEA Sales rose significantly on solid demand for displ
Slide 11: Business by Segment - IA Business (MVL)
Business by Segment - IA Business(MVL) Region F.Y. 2021 2Q（1-6）Results Sales increased slightly, reflecting steady sales related to capital investment in electric devices, Japan electronics and semiconductors, despite sluggish sales to the automobile industry. Sales increased due to ongoing projects
Slide 12: F.Y. 2021 Consolidated Earnings Projection
F.Y. 2021 Consolidated Earnings Projection F.Y. 2021 F.Y. 2020 Operating Results F.Y. 2021 start- latest forecast Changes Full-year (Unit: million yen) of-year forecast (announced on July 13) Results +5,000 Net sales 40,000 45,000 （+12.5%） 34,846 Operating income 3,000 4,500 +1,500 2,098 （Operating
Slide 13: Revisions to the F.Y. 2021 Dividend Projection
Revisions to the F.Y. 2021 Dividend Projection Year-end dividend（¥） Interim dividend（¥） Dividend payout ratio（%） 32.5 Acquisition of treasury shares 30 30 30 27.5 2018 2019 1.5 1.0 15 Amount billion yen billion yen 15 15 15 No. of 700,000 670,000 15 shares shares shares 54.1 77.7 32.4 28.2 28.6 17.5
Slide 14: Medium- to Long-Term Management Strategy
Medium- to Long-Term Management Strategy Copyright (C) 2021 OPTEX GROUP CO., LTD. 14
Slide 15: Further Strengthening of Group Management
Further Strengthening of Group Management Business Growth - Evolution of the business model - M&A Strategy Three Pillars Strengthening of Management Manufacturing Strengthening the Strategy Systems Management System Reducing costs through Stronger unifying force Group synergies as a holding company
Slide 16: Further Strengthening of Group Management
Further Strengthening of Group Management Business Growth - Evolution of the business model - M&A Strategy Three Pillars Strengthening of Management Strengthening the Manufacturing Strategy Management System Systems Reducing costs through Stronger unifying force Group synergies as a holding company
Slide 17: 1. Business Growth
SS Business： 1. Business Growth IA Business： Business Size 3. Acceleration of growth through M&A, etc. 2. Growth through evolution of the 3 business model from the sale of products to the sale of solutions and services SS Business 1. Further growth of existing businesses 2 IA Business １ HOP 2009-201
Slide 18: Growth through evolution of the business model from products to solutions and services
Growth through evolution of the business model from the sale of products to the sale of solutions and services Security Sensor segment Automatic Door Sensor segment Promotion of the Visual Verification Solution Expansion of the data service business by leveraging to increase market share in Europe a
Slide 19: Further Strengthening of Group Management
Further Strengthening of Group Management Business Growth - Evolution of the business model - M&A Strategy Three Pillars Strengthening of Management Strengthening the Manufacturing Strategy Management System Systems Reducing costs through Stronger unifying force Group synergies as a holding company
Slide 20: 2. Cost Reduction by Strengthening Manufacturing Systems
2. Cost Reduction by Strengthening Manufacturing Systems Consolidating two companies into the same base Manufacturer of Manufacturer of Unify the supplier security/automatic LED lighting for Company A Company B Company A or B doors/FA sensors image inspection Mass-production Custom-made products pro
Slide 21: Further Strengthening of Group Management
Further Strengthening of Group Management Business Growth - Evolution of the business model - M&A Strategy Three Pillars Strengthening of Management Manufacturing Strengthening the Strategy Systems Management System Reducing costs through Stronger unifying force Group synergies as a holding company
Slide 22: 3. Enhancing the Group Management System
3. Enhancing the Group Management System Start from introduction of a cash management system, and going forward aim to reduce indirect costs with the introduction of shared services （Holding company） （Holding company） OPTEX GROUP CO., LTD. OPTEX GROUP CO., LTD. Consolidate indirect operations Indire
Slide 23: Optex Group's Management Indicator
Further Strengthening of Group Management Optex Group's Management Indicator Operating ROE Sales growth profit 10%up More than More than 15% 10% Copyright (C) 2021 OPTEX GROUP CO., LTD. 23
Slide 24: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan (Announced Feb. 2021) The plan has been carried out at a pace exceeding the initial plan, so we are working to accelerate the schedule for the achievement of the goals of the final fiscal year of the plan 50,000 45,000 45,000 Revised forecast 40,000 (Net s
Slide 25: https://www.optexgroup.co.jp/en/
https://www.optexgroup.co.jp /en /
Slide 26: Company Overview
Company Overview Copyright (C) 2021 OPTEX GROUP CO., LTD. 26
Slide 27: Company Overview
Company Overview Company Name OPTEX GROUP CO., LTD. Location Otsu City, Shiga, Japan OPTEX Group Established May 25, 1979 is an integrated Capital 2,798 million JPY manufacturer of sensors. Sales 34,846 million JPY It is our business to see what the eyes cannot see! Operating Profit 2,098 million JP
Slide 28: Trends in Consolidated Performance
Trends in Consolidated Performance 2019 2020 - U.S.-China trade tensions, - COVID-19 economic slowdown in China 50,000 - Deceleration in demand for smartphone- related capital investment 45,000 2016 - Acquired CCS Inc. 40,113 40,000 37,504 37,517 34,846 6,500 31,027 2008 (13%) - Lehman Brother colla
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: Holding Company Structure
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. Sanritz Automation OPTEX MFG Co., Ltd. Three Ace Co., Ltd. O'PAL OPTEX CO.,LTD. Co., Ltd. Sales & Development Manufacture of the Development of Ma
Slide 31: Company Overview _ Data
Company Overview _ Data Sales by Product Category Sales by Region EMS/ Asia/ Others Oceania 3% 13% MVL AMERICAs 25% SS 13% 34.8 Security Sensors 34.8 Japan billion yen 35% billion yen 44% (F.Y.2020) (F.Y.2020) SS FA Automatic EMEA 21% SS Door Sensors 30% Others 11% 5% 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% Outdoor Intrusion 30% Automatic door 30% LED inspection Detector sensor lighting Infrared sensor Sensor for large-scale critical facilities Push plate LED lighting systems Cam
Slide 33: Business Domain _ Security sensors
Business Domain _ Security sensors Largest market share in the world for outdoor intrusion detectors Residential home・Commercial facilities Residences Offices Alarm [Security company] signal Outdoor sensors Rush to the scene Police alerted in Europe and the United States Important facilities Oil, ga
Slide 34: Business Domain _ Automatic door sensors
Business Domain _ Automatic door sensors Domestic market share: Over 50% Overseas market share: Over 20% In 1980, we applied far-infrared rays, until Shopping centers Over 60% share then mainly used for military purposes, to of convenience stores automatic door sensors. The world's first Shinkansen
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 Letter/shape imaging (Sm
Slide 37: Business Domain _ Industrial Computers
Business Domain _Industrial Computers Provision of products that are highly reliable in terms of environmental durability, noise insulation, and other factors. Our competitive edge is that we highlight long-term technical support services based on a wealth of expertise on the development of hardware
Slide 38: ESG's Efforts
ESG’s Efforts _ We are proactively addressing ESG issues to enhance our corporate value. See our ESG report here. Environment Social Governance Products and services to help Relationships with local Corporate governance resolve environment issues communities Sensors for shutters that help reduce ene