Slide 1: Summary of F.Y. 2023 Consolidated Financial Results
Summary of F.Y. 2023 Consolidated Financial Results (Jan.1 to Dec.31, 2023) OPTEX GROUP CO., LTD. February 14, 2024 （Tokyo Stock Exchange Prime Market:#6914） <Disclaimer> The forward-looking statements, including OPTEX CO., LTD.’s operating results, strategies, and business plans, contained in these
Slide 2: Agenda
1．FY2023 Overview of Financial Results 2．FY2024 Consolidated Earnings Forecasts 3．Three-Year Management Plan (2024-2026) 4．New Management Team © 2024 OPTEX GROUP CO., LTD. 2
Slide 3: Key Points of the Announcement
Key Points of the Announcement Financial Results of FY2023 Consolidated net sales were 56.3 billion yen, or +3% year on year, surpassing the previous record high. - SS Business: In Japan, sales to main customers expanded steadily. Outside Japan, sales were firm despite the impact of inflation. - IA
Slide 4: Summary of Consolidated Financial Results of FY2023
Summary of Consolidated Financial Results of FY2023 Operating Results FY2022 FY2023 Percent Change (Unit: million yen) Results Results Change Net sales 54,811 56,372 +1,561 +2.8% Operating income 6,303 5,899 -404 -6.4% （Operating income Ratio） （11.5%） （10.5%） Ordinary income 7,042 6,258 -784 -11.1%
Slide 5: Comparison of Financial Results of FY2023 between Segments
Comparison of Financial Results of FY2023 between Segments FY2022 Results FY2023 Results (Unit:million yen) Operating income Percent Operating Percent Net sales Net sales income （Operating income Ratio） Change （Operating income Ratio） Change SS Business 23,465 2,869 25,197 +7.4% 3,186 +11.1% （12.2%）
Slide 6: Factors of change in Net Sales (Year-on-year)
Factors of change in Net Sales（Year- on-year） Impact of Exchange Rate +2,314 56,372 SS IA Business Business EMS Other +242 -789 Business 54,811 Business -193 -13 FA -1,652 SS +1,490 MVL -244 IA +791 IPC +279 EMS +33 MECT +828 FY2022 Consolidated Net Sales FY2023 Results +¥1,561 million Results © 202
Slide 7: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income（Year- on-year） Impact of Increase Exchange in Impact of Sales Rate Expenses Exchange Decrease Increase +1,656 -502 Rate -375 in Cost Rate -677 6,303 -506 5,899 Changes in product mix, etc. Selling, general and Gross operating income administrative Expenses FY202
Slide 8: Quarterly performance - Consolidated Net Sales
Quarterly performance - Consolidated Net Sales (Year-on-year) EMS/Other Business IA Business(MECT) IA Business(IPC) IA Business(MVL) IA Business(FA) SS Business Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Unit: million yen) 2021 2022 2023 © 2024 OPTEX GROUP CO., LTD. 8
Slide 9: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Sales to security companies and key large-scale Japan facilities grew as a result of sales capacities 4,745 bolstered by the direct marketing strategy. 4,488 4,227 4,148 4,110 4,
Slide 10: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Sales of both automatic door sensors and Japan industrial door sensors remained firm. - Sales of both automatic door sensors and industrial door sensors remained firm. AMER
Slide 11: Business by Segment - IA Business (FA)
Business by Segment - IA Business(FA) Region FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Sales of products for investment in electric Japan devices, electronics, and semiconductors increased. - Main customers undertook inventory adjustments in response to the impact of EMEA restra
Slide 12: Business by Segment - IA Business (MVL)
Business by Segment - IA Business(MVL) Region FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Sales for semiconductors and electronic parts, as well as those for EV-related products, remained steady given a recovery in demand for 3,929 Japan capital investment on the part of customers
Slide 13: Business by Segment - IA Business (IPC)
Business by Segment - IA Business(IPC) Region FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Products for semiconductor manufacturing Japan equipment generated positive sales. 1,304 1,268 1,150 1,107 1,110 977 916 886 826 772 782 759 Industrial PCs Tracking Cameras Japan 1Q Q1 2Q Q2
Slide 14: Business by Segment - IA Business (MECT)
Business by Segment - IA Business(MECT) Region FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Deliveries of secondary battery manufacturing Japan equipment made good progress. To be included in consolidated results, starting FY2021. Manufacturing equipment of secondary batteries Imag
Slide 15: Agenda
1．FY2023 Overview of Financial Results 2．FY2024 Consolidated Earnings Forecasts 3．Three-Year Management Plan (2024-2026) 4．New Management Team © 2024 OPTEX GROUP CO., LTD. 15
Slide 16: FY2024 Assessment of the Business Environment
FY2024 Assessment of the Business Environment With inflation and high interest rates subsiding, investment restraints and inventory adjustments are not Security expected to spread any further in Europe or the United States. Sensors Efforts should be made to tap into demand growing against the backdr
Slide 17: FY2024 Consolidated Earnings Forecasts
FY2024 Consolidated Earnings Forecasts FY2023 FY2024 YoY (Unit: million yen) Results Forecast Net sales 56,372 61,000 +8.2% Operating income 5,899 6,600 +11.9% （Operating income Ratio） （10.5%） （10.8%） Ordinary income 6,258 6,600 +5.5% Profit attributable to owners of parent 4,608 5,000 +8.5% Net inc
Slide 18: Shareholder Return
Shareholder Return Implement shareholder returns with an eye to achieving a dividend payout ratio of approximately 30% while simultaneously taking into account the balance between reinforcing the management fundamentals and maintaining a stable dividend. 40 40 36 30 30 20 20 18 15 15 18 20 20 15 15
Slide 19: Agenda
1．FY2023 Overview of Financial Results 2．FY2024 Consolidated Earnings Forecasts 3．Three-Year Management Plan (2024-2026) 4．New Management Team © 2024 OPTEX GROUP CO., LTD. 19
Slide 20: Three-Year Management Plan (2024-2026)
Three-Year Management Plan (2024-2026) -Both net sales and operating profit fell short of the revised projections in 2023 due to a temporary slowdown in the IA business. -Aim to further reinforce sales of highly profitable products in 2024 to expand operating profit. -Aim to improve the operating pr
Slide 21: Strategies to Facilitate the Growth of Mainstay Businesses
Strategies to Facilitate the Growth of Mainstay Businesses SS Business（Security Sensors） SS Business（Automatic Door Sensors） Actively invest in products for image Increase market share in Europe and the confirmation solutions and those for United States through product offices / facilities. enhancem
Slide 22: Agenda
1．FY2023 Overview of Financial Results 2．FY2024 Consolidated Earnings Forecasts 3．Three-Year Management Plan (2024-2026) 4．New Management Team © 2024 OPTEX GROUP CO., LTD. 22
Slide 23: New Management Team
New Management Team The Company seeks to realize its long-term vision under the leadership of the next- generation management team, with a view toward achieving the sustainable enhancement of corporate value. President Vice President ［New］Director & CFO Director Director Tatsuya Nakajima Toru Kamimu
Slide 24: Conceptual Image of Growth
Conceptual Image of Growth Speed up the shift to selling solutions matched with changes in the needs of markets and customers AI Cloud IoT Cloud Selling of Solutions - Visual verification solution - Automatic door sensor monitoring service - IO-Link solution - Comprehensive solutions for visual insp
Slide 25: https://www.optexgroup.co.jp /en /
https://www.optexgroup.co.jp /en /
Slide 26: Company Overview
Company Overview © 2024 OPTEX GROUP CO., LTD. 26
Slide 27: 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 56,372 million JPY To see things what eyes cannot see, that is our business ! Operating Profit 5,899 milli
Slide 28: Trends in Consolidated Performance
Trends in Consolidated Performance 75,000 2019 - U.S.-China trade tensions, economic slowdown in China 2020 - Deceleration - COVID-19 67,000 in demand for smartphone- related capital investment 61,000 56,372 54,811 2016 - Acquired CCS Inc. 45,866 10,000 (13%) 40,113 37,504 37,517 2008 34,846 8,000 -
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 OPTEX GROUP CO., LTD
SS Business: Sensing Solution Business Holding Company Structure IA Business: Industrial Automation Business Holding Company OPTEX GROUP CO., LTD （Tokyo Stock Exchange Prime Market：#6914） OPTEX CO., LTD. OPTEX FA CO., LTD. CCS Inc. Sanritz Automation MITSUTEC CO., LTD. Co., Ltd. Development/manufac
Slide 31: Company Overview _ Data
Company Overview _ Data Sales by Product Category Sales by Region 2% EMS/Others IA（MECT）4% Asia/ IA (IPC) Oceania 8% 12% SS Security AMERICAs IA (MVL) 56.3 Sensors 31% 14% 56.3 Japan billion yen 46% 24% billion yen (FY2023) (FY2023) SS Automatic Door Sensors EMEA IA SS 10% (FA) Others 28% 17% 4% © 2
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 Camera sensor critical facilities LED lighting systems
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 Over 60% share Shopping centers then mainly used for military purposes, to of convenience stores automatic door sensors. The world's first Hospitals S
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: Business Domain _ Mechatronics
Business Domain _Mechatronics Automation Systems Image Processing Inspection Systems "Motion technology" Boasting advanced mechatronics technology to move things ✓ High-speed/high-precision filling technology × ✓ High-speed material handling technology, etc. "Vision technology" to see things → High
Slide 39: Environment Social Governance
ESG’s Efforts _ We are proactively addressing ESG issues to enhance our corporate value. See our ESG report here. Environment Social Governance Initiatives to tackle environmental issues Initiatives for social issues Corporate governance initiatives [Support for the TCFD Recommendations] The Company
Slide 40: https://www.optexgroup.co.jp /en /
https://www.optexgroup.co.jp /en /