Slide 1: Consolidated annual F.Y. 2018 presentation
Consolidated annual F.Y. 2018 presentation (Jan.1 to Dec.31, 2018) OPTEX GROUP CO.,LTD. Feb. 14th, 2019 （Tokyo Stock Exchange Market 1st Section:#6914） <Disclaimer> The forward-looking statements, including OPTEX CO., LTD.’s operating results, strategies, and business plans, contained in these mater
Slide 2: Key Points of Financial Results for the Fiscal Year Ended December 2018
Key Points of Financial Results for the Fiscal Year Ended December 2018 ・Net sales increased steadily, +7% year-on-year ・Operating income is +2% year-on-year, thanks to positive investment for future growth ・In particular, the FA business remained strong and was the driver. Copyright (C) 2019 OPTEX
Slide 3: Summary of Consolidated Financial Results for the Fiscal Year Ended December 2018
Summary of Consolidated Financial Results for the Fiscal Year Ended December 2018 Operating Results F.Y. 2017 (1-12) F.Y. 2018 (1-12) Percent Change (Unit: million yen) Results Results Change Net sales 37,504 40,113 +2,609 ＋7.0% Operating income 4,885 4,989 +104 +2.1% （Operating income Ratio） （13.0%
Slide 4: Quarterly performance - Consolidated Net Sales (Year-on-year)
Quarterly performance - Consolidated Net Sales (Year- on-year) 10,799 9,906 9,844 9,830 9,640 9,369 9,145 9,084 2,543 2,417 2,552 2,344 2,046 2,179 2,083 2,343 MVL事業 MVL Business 2,136 1,728 2,185 2,139 1,990 1,911 2,088 1,686 FA Business FA事業 SS Business 5,761 6,120 EMS Business 5,116 5,200 5,090 5
Slide 5: Comparison of Consolidated Results Between Segments
Comparison of Consolidated Results for the Fiscal Year Ended December 2018 Between Segments F.Y. 2017 (1-12) Results F.Y. 2018 (1-12) Results Operating Results Operating Operating (Unit: income Percent income Percent Net sales Net sales million yen) （Operating income Change （Operating income Change
Slide 6: Factors of change in Net Sales (Year-on-year)
Factors of change in Net Sales (Year- on-year) Impact of MVL EMS Other Exchange Business Business Business Rate FA +448 -165 +282 +137 40,113 Business +1,251 SS Business +656 37,504 F.Y. 2017 Consolidated Net Sales F.Y. 2018 (1-12) Results +2,609million (1-12) 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) Impact of Sales Exchange Increase in COS% Up expenses Increase Rate - 242 - 1,282 + 1,438 + 205 Impact of Exchange Rate 4,885 - 15 4,989 Gross operating income Selling, general and administrative Expenses F.Y. 2017 Consolidated Operating F.Y. 201
Slide 8: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region F.Y. 2018 (1-12) Results Sales of outdoor intrusion detectors for security companies and for critical, large-scale Japan facilities decreased, although they recovered in the latter half. Sales of outer periphery alarm sensors for large-scale
Slide 9: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region F.Y. 2018 (1-12) Results Sales of automatic door sensors for domestic leading customers remained steady, and Japan the sales increased. Sales of automatic door sensors for major customers in North America remained AMERICAs steady, and
Slide 10: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Region F.Y. 2018 (1-12) Results Substantial increase in sales because sales of displacement sensors for semiconductors, Japan secondary batteries, and flat panel displays and in the electronic component industry were strong. Sales of displacement sen
Slide 11: Business by Segment - Machine Vision Lighting Business
Business by Segment - Machine Vision Lighting Business Region F.Y. 2018 (1-12) Results Continued to grow steadily thanks to the expansion of solutions and the expanded Japan business area due to the opening of laboratories. Although there were large deals from the existing customers, continued proje
Slide 12: Dividend/Dividend Ratio and ROE Target
Dividend/Dividend Ratio and ROE Target Dividends and dividend payout ratio ROE/Shareholders’ equity ratio （Unit：％） Stock split 1:2 ROE Shareholders's equity ratio Year-end dividend （¥） 30 30 78.0 Interim dividend （¥） 55 74.4 70.1 Dividend payout ratio（％） 65.0 45 15 15 40 30 12.6 12.3 25 20 8.7 41.2
Slide 13: Priority Measures for Fiscal Year 2019
Priority Measures for Fiscal Year 2019 Copyright (C) 2019 OPTEX GROUP CO., LTD. 13
Slide 14: SS Business (Security Sensors)
SS Business(Security Sensors) Priority Product Priority Area Promotion of Visual Verification Aiming at Achieving the Top Share Business with Interconnected in Japan’s High-end Market Operation of Sensors and Cameras ・Enhancement of product lineup (Starting with overseas markets) (Selling imported p
Slide 15: FA Business
FA Business Priority Product Priority Area Further increasing the share Further increasing the share in the Asian by enhancing the lineup of and US market that is growing continuously due to increasing needs for displacement sensors automation and labor-saving ◆Sensors with one of the highest measur
Slide 16: MVL Business
MVL Business Priority Product Priority Area UV-LED Irradiator Business Expansion of our Business in Europe ■ Principle of UV hardening The liquid is chemically changed into a solid by using UV (ultraviolet) energy Through French Company Effilux Irradiation of UV rays Line of business: Development, m
Slide 17: Growth Strategy
Growth Strategy Copyright (C) 2019 OPTEX GROUP CO., LTD. 17
Slide 18: Performance of M&A Strategy
Performance of M&A Strategy Continue our Growth by Expanding our Share of Existing Business and Effective M&A From 2016 onward Expansion of share of FA and MVL markets Tokyo Opto-Electronics Co., Ltd. 2007-2012 CCS Inc. （Japan） （Japan） 500 Expansion of share of outdoor security sensors Effilux SAS G
Slide 19: Performance of M&A Strategy and Policy - SS Business
Performance of M&A Strategy and Policy _ SS Business (Security-related Business) 2007~2018 Share of outdoor security sensors expanded due to synergy effect 2019~ 2007 2010 2012 Farsight Security FIBER SENSYS INC.（US） RAYTEC LIMITED（UK） Services Limited（UK） Enhancement Remote Image Development and Sa
Slide 20: Performance of M&A Strategy and Policy - MVL Business
Performance of M&A Strategy and Policy _ MVL Business 2016~2018 Expansion of investment in MVL business; established it as the second main business together with the FA business 2019~ 2016 2016 2018 Gardasoft Vision Limited CCS Inc.（Japan） Effilux SAS（France） （UK） LED lighting Controller for LED lig
Slide 21: Forecast of Full-Year Consolidated Business Performance in FY Ending December 2019
Forecast of Full-Year Consolidated Business Performance in the Fiscal Year Ending December 2019 Our goal: Consolidated net sales of ¥43 billion 43,000 and operating profit of ¥5.3 billion in 2019 40,113 37,504 31,027 27,793 5,400 25,678 5,036 5,038 23,582 5,300 22,167 20,916 20,699 4,989 18,502 3,22
Slide 22: Topics
Topics 1. ESG’s Efforts 2. Change of Representative Directors Copyright (C) 2019 OPTEX GROUP CO., LTD. 22
Slide 23: 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 Experience and Learning at Outside directors with diverse, Biwako Lake varied histories and skills SS Business（Automatic Door Sensors) Release of e-Smooth "
Slide 24: Change of Representative Directors
Change of Representative Directors On the occasion of our 40th anniversary in 2019, we are further enhancing our management system to achieve further prosperity. Name New Position Current Position Toru Director and Senior Representative Director & Chairman, serving Kobayashi Corporate Advisor concur
Slide 25: https://www.optexgroup.co.jp/en/
https://www.optexgroup.co.jp /en /
Slide 26: Supporting documentation
Supporting documentation Copyright (C) 2019 OPTEX GROUP CO., LTD. 26
Slide 27: Forecast by Segment and Region
Forecast by Segment and Region (Unit: million yen) Segment and Region F.Y.2018 (1-12) Results F.Y.2019 (1-12) Forecast Percent Change（%） SS Business(Security Sensors) 14,382 15,026 +5％ Japan 2,377 2,512 +6％ AMERICAs 2,991 3,043 +2% EMEA 7,407 7,486 +1% Asia and Oceania 1,607 1,985 +24% SS Business(A
Slide 28: Estimated Exchange Rate and Exchange Sensitivity
Estimated Exchange Rate and Exchange Sensitivity Exchange rate F.Y. 2018 F.Y. 2019 (Unit: Yen) （Results） （Plan） JPY/USD 110.43 110.00 JPY/GBP 147.48 140.00 JPY/EUR 130.42 125.00 Impact on our full- F.Y. 2018（Results） F.Y. 2019（Plan） year performance by a-yen Operating Operating appreciation Net sale
Slide 29: Partial Revision to Main Business Segments
Partial Revision to Main Business Segments F.Y. 2017 F.Y. 2018 Security Sensor Security Sensor segment segment Automatic Door SS Automatic Door SS Sensor segment Business Sensor segment Business EMS Segment （EMS: Electronics Manufacturing （SS : Sensing Solution) Other (Water Quality Measurement Solu
Slide 30: 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 1,467 1,332 1,392 1,252 1,309 1,312 1,261 1,212 1,253 1,091 1,070 1,148 1,128 1,127 1,133 1,138 1,010 981 844 755 777 812 844 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 31: Quarterly performance - Consolidated SG&A expenses
Quarterly performance - Consolidated Selling, general and administrative expenses (Year- on-year) Others R&D Expense Year-on-year Selling, 3,581 3,938 general and administrative 3,395 3,547 3,552 3,197 3,266 3,215 expenses +8.1% Personnel cost +10.1% Expense +7.4% 649 667 834 663 746 725 750 R&D exp
Slide 32: Company Overview
Company Overview Copyright (C) 2019 OPTEX GROUP CO., LTD. 32
Slide 33: Company Overview
Company Overview Company Name OPTEX GROUP CO., LTD. Location Shiga Otsu, Japan Established May 25, 1979 Capital 2,798 million JPY The OPTEX Group Sales 40,113 million JPY Operating Profit 4,989 million JPY is an integrated Fiscal Year-End December Stock Code Tokyo Stock Exchange manufacturer of sens
Slide 34: 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. Sales, Development & Development of Manufacture of the Sales & Development Sales & Deve
Slide 35: Company Overview - Data
Company Overview _ Data Sales by Product Category Sales by Region Others AMERICAs Automatic 8% 12% Door Sensors 11% Security Asia/Oceania Sensors Factory 40.1 36% 13% 40.1 Japan 43% Automation billion yen billion yen (2018) (2018) 21% LED Lighting for EMEA Image Inspection 32% 24% EMEA : Europe, the
Slide 36: 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 Infrared sensor Sensors for general home use Push plate Sensors for large-scale critic