Optex Group Company Limited · TSE:6914
Optex — Q3 2019 Earnings Presentation
33 slides from Optex's earnings presentation, Nov 7, 2019
Slide 1: Summary of Consolidated Financial Results for the Third Quarter of F.Y. 2019
Summary of Consolidated Financial Results for the Third Quarter of F.Y. 2019 (Jan.1 to Sep.30, 2019) OPTEX GROUP CO., LTD. November 7, 2019 （Tokyo Stock Exchange Market 1st Section:#6914） <Disclaimer> The forward-looking statements, including OPTEX CO., LTD.’s operating results, strategies, and busi
Slide 2: Key Points of Financial Results from 3Q of F.Y. 2019
Key Points of Financial Results from 3Q of F.Y. 2019 ・Net sales were -5.9% year on year due to the sluggish growth of three mainstay segments (SS, FA, and MLV) ・Operating income was -50.0% year on year, mainly due to higher SG&A expenses of acquired subsidiaries, in addition to the decline in gross
Slide 3: Summary of Consolidated Financial Results for the Third Quarter of F.Y. 2019
Summary of Consolidated Financial Results for the Third Quarter of F.Y. 2019 Operating Results F.Y.2018 3Q F.Y.2019 3Q Percent Change (Unit: million yen) (1-9) Results (1-9) Results Change Net sales 29,314 27,591 -1,723 -5.9% Operating income 3,737 1,868 -1,869 -50.0% （Operating income Ratio） （12.8%
Slide 4: Quarterly performance - Consolidated Net Sales (Year-on-year)
Quarterly performance - Consolidated Net Sales (Year- on-year) 10,799 9,844 9,830 9,640 397 9,285 9,308 EMS/Other 144 170 8,998 212 2,543 236 279 Business 2,552 2,344 362 2,046 2,305 2,408 2,181 MVL Business 2,136 2,088 2,185 2,139 1,755 1,789 1,758 FA Business SS Business 5,243 5,723 5,060 5,131 4,
Slide 5: Comparison of Financial Results for the Third Quarter between Segments
Comparison of Financial Results for the Third Quarter of F.Y. 2019 between Segments F.Y. 2018 3Q(1-9) Results F.Y. 2019 3Q(1-9) Results Operating 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 Business FA Impact of 29,314 -504 Business EMS Other Exchange MVL -1,106 Business Business Rate Business +88 +263 -496 +32 27,591 F.Y. 2018 Consolidated Net Sales F.Y. 2019 3Q(1-9) Results -¥1,723 million 3Q(1-9) Results (Unit: million yen) Copyright
Slide 7: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income (Year- on-year) Sales Decrease 3,737 -638 COS% Up Impact of Increase -455 Exchange in Rate Expenses -405 (Including SG&A expenses at new companies) Impact of -513 Exchange Rate +142 1,868 Selling, general and Gross operating income administrative Expenses F.Y. 2
Slide 8: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region F.Y. 2019 3Q(1-9) Results Sales increased due to strong sales of outdoor intrusion detectors for security companies Japan and for critical, large-scale facilities. Sales fell due to stagnating sales of sensors for large-scale critical facili
Slide 9: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region F.Y. 2019 3Q(1-9) Results Sales decreased, reflecting sluggish sales of automatic door sensors to major domestic Japan customers. Sales increased due to steady sales of automatic door sensors to major customers in North AMERICAs Americ
Slide 10: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Region F.Y. 2019 3Q(1-9) Results Sales declined due to sluggish growth of sales of products for semiconductors, secondary Japan batteries, and the electronic component industry. Sales declined significantly because sales to OEM customers grew sluggis
Slide 11: Business by Segment - Machine Vision Lighting (MVL) Business
Business by Segment - Machine Vision Lighting (MVL) Business Region F.Y. 2019 3Q(1-9) Results Revenue decreased due to the continued reduction of investments in the semiconductor and Japan smart phone industries caused due to the impact of the extended U.S.-China trade friction. Revenue increased th
Slide 12: F.Y. 2019 Consolidated Earnings Projection
F.Y. 2019 Consolidated Earnings Projection Operating Third quarter of 2019 Third quarter of 2019 F.Y. 2018 Results Previous forecast Latest forecast Changes Full-year (Unit: million yen) (announced on July 11) (announced on Nov. 7) Results -2,500 Net sales 40,000 37,500 （-6.3%） 40,113 Operating inco
Slide 13: Trends in Consolidated Performance
Trends in Consolidated Performance 40,113 37,504 37,500 31,027 27,793 25,678 23,582 22,167 5,038 20,916 20,699 5,036 18,502 4,885 4,989 17,395 4,076 15,124 3,043 2,700 3,222 2,628 3,086 3,386 2,661 2,558 2,700 3,854 1,761 1,830 1,680 2,108 735 3,775 1,705 1,677 1,398 3,161 3,015 620 2,489 2,377 332
Slide 14: https://www.optexgroup.co.jp /en /
https://www.optexgroup.co.jp /en /
Slide 15: Supporting documentation
Supporting documentation Copyright (C) 2019 OPTEX GROUP CO., LTD. 15
Slide 16: Estimated Exchange Rate and Exchange Sensitivity
Estimated Exchange Rate and Exchange Sensitivity F.Y. 2019 F.Y. 2019 Exchange rate F.Y. 2018（Results） Previous forecast Latest forecast (Unit: Yen) (announced on July 11) (announced on Nov. 7) JPY/USD 110.43 110.03 108.38 JPY/GBP 147.48 141.21 137.31 JPY/EUR 130.42 124.66 121.95 Impact on our F.Y. 2
Slide 17: Quarterly performance - Consolidated Profit (Year-on-year)
Quarterly performance - Consolidated Profit (Year- on-year) Operating income Ordinary income Profit attributable to owners of parent 1,461 1,312 1,261 1,212 1,253 1,148 1,128 1,252 1,138 981 732 812 844 583 704 553 533 577 499 424 432 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 20
Slide 18: Quarterly performance - Consolidated SG&A expenses (Year-on-year)
Quarterly performance - Consolidated Selling, general and administrative expenses (Year- on-year) Others R&D Expense Year-on-year Selling, 3,547 3,552 3,938 3,630 3,672 3,600 general and administrative 3,395 expenses +2.9% Personnel cost +7.9% Expense -0.9% 746 725 750 691 732 675 R&D expense -1.7%
Slide 19: Company Overview
Company Overview Copyright (C) 2019 OPTEX GROUP CO., LTD. 19
Slide 20: 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 40,113 million JPY To see things what eyes cannot see, that is our business ! Operating Profit 4,989 milli
Slide 21: Trends in Consolidated Performance
Trends in Consolidated Performance 40,113 37,504 37,500 31,027 27,793 25,678 23,582 22,167 5,038 20,916 20,699 5,036 18,502 4,885 4,989 17,395 4,076 15,124 3,043 2,700 3,222 2,628 3,086 3,386 2,661 2,558 2,700 3,854 1,761 1,830 1,680 2,108 735 3,775 1,705 1,677 1,398 3,161 3,015 620 2,489 2,377 332
Slide 22: 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 & Sales & Sales, Development Development of Manufacture of t
Slide 23: Company Overview _ Data
Company Overview _ Data Sales by Product Category Sales by Region Others AMERICAs 8% 12% Asia/ LED Lighting for Security Oceania 40.1 40.1 Image Inspection Sensors 13% Japan 24% 36% billion yen billion yen 43% (2018) (2018) Factory Automatic EMEA Automation Door Sensors 32% 21% 11% EMEA : Europe, th
Slide 24: Company Overview _ Global Market Share
Company Overview _ Global Market Share Global niche No.1 Security Automatic door Machine vision sensors sensors lighting 40% 30% 30% Intrusion detector Automatic door LED lighting for outdoor sensor for inspection Sensors for large-scale Infrared sensor Push plate critical facilities Camera sensors
Slide 25: Business Domain _ Security sensors
Business Domain _ Security sensors The sensor serves as the eye of a machine security system. A common machine security system (for illustration purposed only) Clients Security company (General households, retail stores, 24-hour surveillance business establishments, of its clients’ sites and others)
Slide 26: Business Domain _ Security sensors
Business Domain _ Security sensors Largest market share in the world for intrusion detectors for outdoor use Products for general households Products for important facilities Deterioration of security in overseas countries Measures against terrorism strengthened in attributed to immigrants and refug
Slide 27: Business Domain _ Automatic door sensors
Business Domain _ Automatic door sensors Development of the world’s first far-infrared automatic door sensor In 1980, we applied the far-infrared ray, until then mainly used for military purposes, to automatic door sensors. Mat switch (on the floor) Infrared sensor (overhead) It breaks easily becaus
Slide 28: Business Domain _ Automatic door sensors
Business Domain _ Automatic door sensors Share in the domestic market: Over 50% Share in the overseas market: Over 20% Commercial facilities/ Condominium entrance Airport entrance Train station entrance multi-tenant buildings Leading office buildings Shinkansen (“bullet train”) Over 60% share Hospit
Slide 29: Our Strengths _ Security sensors, Automatic door sensors
Our Strengths _ Security sensors、Automatic door sensors Detected Sensing Human passing algorithm Detection cancelled 1. Highly reliable Rain Snow Bug outdoor sensing Preventing malfunction technologies Electromagnetic Optical noise Vibrations noise Unique safety standards of OPTEX 2. Products and st
Slide 30: Business Domain _ Sensors for factory automation (FA)
Business Domain _ Sensors for factory automation（FA） 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
Slide 31: 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 taken and processed usi
Slide 32: Business Domain _ New Businesses
Business Domain _ New Businesses Sensing things instead of humans Vehicle detection sensors Water quality measurement sensor Release of vehicle detection sensors for coin Development and release of water quality parking lots that do not need to be buried measurement products for the measurement of u
Slide 33: ESG's Efforts
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 social issues communities Four of the Directors and members of Implement