Slide 1: 2nd Quarter FY2014 Financial Results
2nd Quarter FY2014 Financial Results August 6, 2014 Tamron Co., Ltd. (Code: 7740)
Slide 2: Contents
Contents Ⅰ.2nd Quarter FY2014 Financial Results Ⅲ.Financial Situation 1. Business Briefing P.4 1. Financial Summary P.19 2. 1st Half FY2014 Summary P.5 2. Capital Investment / Depreciation P.20 3. FY2014 Quarterly Financial Results P.6 3. Research & Development P.21 4. 1st Half FY2014 Financial Resu
Slide 3: Ⅰ. 2nd Quarter FY2014 Financial Results
Ⅰ．2nd Quarter FY2014 Financial Results 2nd Quarter Financial Results FY2014 3
Slide 4: Business Briefing
Ⅰ-１. Business Briefing Company Profile Business Segment Total subsidiaries overseas : 9 Photographic Products Domestic offices: 4 / Sales offices: 7 Interchangeable lenses for cameras （SLR / MILC） ISO9001, ISO14001 certified ISO/TS16949 certified Optical Components Camcorder lenses Net s
Slide 5: 1st Half FY2014 Summary
Ⅰ-２. 1st Half FY2014 Summary Business Environment Moderate but steady improvement in global economy despite partial setbacks Continued baseline trend of Yen’s depreciation against US dollars and Euro Digital Camera market segment Compact DSCs shrunk 39% year on year while interchangeable lens
Slide 6: FY2014 Quarterly Financial Results
Ⅰ-３. FY2014 Quarterly Financial Results （Millions of yen） 1Q 1Q 2Q 2Q Change Change FY13 FY14 FY13 FY14 Net Sales 13,216 14,132 +916 18,236 18,638 +401 Operating Income 800 670 (130) 1,560 1,895 +334 (% Sales) 6.1% 4.7% (1.4)% 8.6% 10.2% +1.6% （Net Sales/million yen） Net Sales Operating Income (Oper
Slide 7: 1st Half FY2014 Financial Results
Ⅰ-４. 1st Half FY2014 Financial Results （Millions of yen） FX 1st H 1st H 1st H Change Change Impact vs. 1st H FY13 vs. Same Period FY13 FY14*FCT FY14 Forecast vs. 1st H FY13 Net Sales 31,453 32,500 32,770 1,317 104.2% 270 100.8% +2,100 Operating 2,360 2,400 2,565 205 108.7% 165 106.9% +500 Income (%
Slide 8: Contributing Factors for Performance
Ⅰ-５. Contributing Factors for Performance vs. 1st H FY2013 （Millions of yen） 1st H 1st H Change FY13 FY14 Change Factors (a) (b) (b)-(a) (b)/(a) Exchange gain +2,100 Sales (800) Net Sales 31,453 32,770 1,317 104.2% ---------------------------------------- +1,300 Exchange gain +500 Sales (250) Operat
Slide 9: 1st Half FY2014 Results by Segment
Ⅰ-６. 1st Half FY2014 Results by Segment （Millions of yen） 1st H Change FX 1st H 1st H Change Impact FY14 vs. 1st H FY13 vs. Same Period vs. 1st H FY13 *FCT FY14 Forecast FY13 Net Sales 22,380 23,500 23,090 709 103.2% (409) 98.3% 1,350 Photographic OperatingIncome 1,956 2,200 2,311 355 118.2% 111 105
Slide 10: FY2014 Quarterly Results by Segment
Ⅰ-７. FY2014 Quarterly Results by Segment （Millions of yen） 1Q 2Q 1st H FY14 FY14 FY14 Net Sales 9,387 13,702 23,090 Photographic Operating Income 619 1,692 2,311 Products (% Sales) 6.6% 12.3% 10.0% Net Sales 1,590 1,928 3,518 Optical Operating Income 23 237 260 Components (% Sales) 1.5% 12.3% 7.4% N
Slide 11: Ⅱ. FY2014 Financial Forecast
Ⅱ．FY2014 Financial Forecast 2nd Quarter Financial Results FY2014 11
Slide 12: FY2014 Forecast
Ⅱ-１. FY2014 Forecast （Millions of yen） 1st H 2nd H Change FY13 FY14*FCT FY14 FY14*FCT vs. FY13 Net Sales 68,452 32,770 38,229 71,000 2,547 103.7% Operating 5,233 2,565 3,234 5,800 566 110.8% Income (% Sales) 7.6% 7.8% 8.5% 8.2% 0.6% - Ordinary 5,196 2,638 2,961 5,600 403 107.8% Income (% Sales) 7.6%
Slide 13: FY2014 Forecast (Sales / Operating Income)
Ⅱ-２. FY2014 Forecast (Sales / Operation Income) （Millions of yen） Net Sales Operating Income 80,000 1st H 2nd H Op. Income Ratio 71,000 10,000 10.0% 68,452 64,353 8.6% 8.2% 60,000 8,000 7.6% 8.0% 2nd H 2nd H 2nd H 5,503 5,800 6,000 5,233 6.0% 40,000 4,000 2nd H 2nd H 4.0% 2nd H 20,000 1st H 1st H 1s
Slide 14: FY2014 Forecast by Segment
Ⅱ-３. FY2014 Forecast by Segment （Millions of yen） FY14 FY14 Change Change vs. FY13 vs. Previous Forecast FY13 Previous Current Forecast Forecast (c)-(a) (c)/(a) (c)-(b) (c)/(b) (a) (b) (c) NetSales 48,492 51,500 52,500 4,007 108.3% 1,000 101.9% Photographic OperatingIncome 4,280 5,400 5,900 1,619 13
Slide 15: FY2014 Forecast by Segment: Photographic Products
Ⅱ-４. FY2014 Forecast by Segment 1) Photographic Products （Millions of yen） Net Sales Operating Income 60,000 1st H 2nd H Op. Income Ratio 52,500 10,000 15.0% 46,920 48,492 12.7% 50,000 8,000 11.2% 12.0% 40,000 2nd H 5,958 8.8% 5,900 2nd H 2nd H 6,000 9.0% 30,000 4,280 2nd H 4,000 2nd H 6.0% 20,000 2
Slide 16: FY2014 Forecast by Segment: Optical Components
Ⅱ-４. FY2014 Forecast by Segment 2) Optical Components （Millions of yen） Net Sales Operating Income 10,000 1st H 2nd H Op. Income Ratio 1,500 15.0% 8,275 7,629 12.3% 8,000 1,200 12.0% 6,500 2nd H 938 6,000 2nd H 900 7.7% 9.0% 2nd H 2nd H 5.5% 4,000 600 500 6.0% 452 2nd H 2nd H 2,000 1st H 300 1st H 3
Slide 17: FY2014 Forecast by Segment: Commercial / Industrial-use Optics
Ⅱ-４. FY2014 Forecast by Segment 3) Commercial / Industrial-use Optics （Millions of yen） Net Sales Operating Income 15,000 1st H 2nd H Op. Income Ratio 4,000 20.0% 12,330 12,000 19.7% 12,000 17.4% 17.5% 3,000 15.0% 9,157 9,000 2nd H 2,429 2nd H 2,100 2nd H 2,000 10.0% 6,000 1,595 2nd H 2nd H 2nd H 1,
Slide 18: Ⅲ. Financial Situation
Ⅲ．Financial Situation 2nd Quarter Financial Results FY2014 18
Slide 19: Financial Summary
Ⅲ-１. Financial Summary （Millions of yen） Jun 30, Dec 31, Jun 30, Change Remarks 2013 2013 2014 vs. Dec 31, 2013 Cash and Deposits 13,305 14,297 16,947 2,650 Mainly due to decrease in inventory Notes and Accounts Receivable 13,856 14,898 14,164 (734) Inventories 12,278 11,055 9,725 (1,330) Due to eff
Slide 20: Capital Investment & Depreciation
Ⅲ-２. Capital Investment & Depreciation （Millions of yen） 10,000 8,000 Capital Investment 6,000 Depreciation Depreciation 6,130 Depreciation 3,257 3,182 4,200 Depreciation Capital Investment 3,440 2,800 4,000 Capital Investment Capital Investment 4,386 3,656 2,000 Net Income Net Income Net Income Net
Slide 21: Research & Development
Ⅲ-３. Research & Development （Millions of yen） （％） 4,000 8.0 3,000 5.6 5.4 6.0 4.7 4.6 2,000 4.0 3,304 3,492 3,300 3,217 1,000 2.0 0 0.0 FY11(A) FY12(A) FY13(A) FY14(F) R&D 3,304 3,492 3,217 3,300 Ratio 5.6 5.4 4.7 4.6 R&D cost/Net sales ratio (A):Actual (F):Forecast 2nd Quarter Financial Results F
Slide 22: Inventories / Liabilities with Interests
Ⅲ-４. Inventories / Liabilities with Interests Inventories Liabilities with Interests （Millions of yen） (Month) （Millions of yen） （％） 14,000 3.0 10,000 20.0 12,000 2.3 2.5 8,000 15.0 10,000 1.8 1.8 2.0 12.2 6,000 8,000 8.8 9.1 1.5 10.0 6,000 12,278 11,055 4,000 7,586 9,725 1.0 4,000 5,714 5,836 5.0 2
Slide 23: Cash Flow Statement
Ⅲ-５. Cash Flow Statement Operating CF （Millions of yen） 1st H FY13 FY13 1st H FY14 Investing CF 10,000 9,602 Free Cash Flow Financing CF 8,000 6,000 4,160 4,927 3,627 4,000 3,561 2,000 646 1,081 0 (2,000) (1,300) (675) (1,324) (4,000) (3,514) (6,000) (8,000) (6,041) 1st H FY13 FY13 1st H FY14 Cash F
Slide 24: Outlook for Cash Dividends
Ⅲ-６. Outlook for Cash Dividends （Yen） FY11 FY12 FY13 FY14*FCT Interim 20.00 20.00 20.00 20.00 Year End 30.00 30.00 30.00 30.00 Total 50.00 50.00 50.00 50.00 Dividend Payout Ratio 36.1% 35.2% 42.9% 35.2% （Consolidated） 2nd Quarter Financial Results FY2014 24
Slide 25: Referential Data: Key Performance Index
Ⅲ-７. Referential Data 1)Key Performance Index （Yen） （％） 200.00 11.2 12.0 10.1 10.9 8.9 10.0 150.00 8.5 9.8 8.0 8.2 100.00 7.3 6.0 138.61 141.86 142.07 4.0 116.48 50.00 2.0 0.00 0.0 FY11(A) FY12(A) FY13(A) FY14(F) EPS 138.61 141.86 116.48 142.07 ROE 10.9 10.1 7.3 8.2 ROA 11.2 9.8 8.5 8.9 ROE＝Net Inc
Slide 26: Referential Data: Impact of Currency Rate Fluctuations
Ⅲ-７. Referential Data 2) Impact of Currency Rate Fluctuations 1st Half FY2014 Exchange rate Effect (Yen) (Million yen) Operating 1st H FY13 1st H FY14 Net Sales Income USD 95.73 102.46 +1,250 ±0 EURO 125.65 140.44 +650 +500 Others - - +200 ±0 Total - - +2,100 +500 (Impact on FY2013 Actual performanc
Slide 27: Ⅳ. Mid-Term Strategy
Ⅳ．Mid-Term Strategy 2nd Quarter Financial Results FY2014 27
Slide 28: Corporate Tagline and Mid-Term Management Goals for FY2016
Ⅳ-１. Corporate Tagline Ⅳ‐２. Mid-Term Management Goals for FY2016 Net Sales：¥90.0 billion Operating Income：¥8.5 billion （Operating Income Ratio 9.4%） 2nd Quarter Financial Results FY2014 28
Slide 29: Strategy Towards FY2016: Photographic Products
Ⅳ-３. Strategy Towards FY2016 by Segment 1) Photographic Products Target ： ¥67.0 billion （74.4% of Total Net Sales） 2016 Development of innovative new products for own-branded lens line Mid-Term Improvement of new product development time line and launch schedule Target Expansion of sales netwo
Slide 30: Strategy Towards FY2016: Optical Components
Ⅳ-３. Strategy Towards FY2016 by Segment 2) Optical Components Target: 3.5 billion yen (3.9% of Total Net Sales) 2016 Focus on higher value-added products to avoid getting involved in price competition and to secure profits. Mid-Term Achieving better cost efficiency for LWIR (Long-Wave Infra Red)
Slide 31: Strategy Towards FY2016: Commercial / Industrial-use Optics
Ⅳ-３. Strategy Towards FY2016 by Segment 3) Commercial / Industrial-use Optics Target: 19.5 billion yen (21.7% of Total Net Sales) Strengthened development of security surveillance camera lenses and expansion in global sales network 2016 Facilitating new business development by collaborative rela
Slide 32: Enhanced Production System: Vietnam
Ⅳ-４. Enhanced Production System Vietnam－Started operation in July, 2013 Category Current situation Number of Employee 200 (July, 2013) ⇒ 796 (August, 2014) Processing Lens Element, Metal, Assembly Production Interchangeable DSLR lenses, Capacity Security/ Surveillance camera lenses Production Model
Slide 33: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the “FY2014 Financial Results” 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 our presentation are based on t