Optex Group Company Limited · TSE:6914
Optex — FY2019 Earnings Presentation
51 slides from Optex's earnings presentation, Feb 14, 2020
Slide 1: Summary of F.Y. 2019 Consolidated Financial Results
Summary of F.Y. 2019 Consolidated Financial Results from Jan.1 to Dec.31, 2019 February 14, 2020 （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 materials ar
Slide 2: Key Points of Financial Results of F.Y. 2019
Key Points of Financial Results of F.Y. 2019 ・Net sales were -7% year on year due to the sluggish growth of three mainstay segments (SS, FA, and MLV) ・Operating income was -43% year on year, mainly due to higher SG&A expenses of acquired subsidiaries, in addition to the decline in gross margin Copyr
Slide 3: Trends in Consolidated Performance
Trends in Consolidated Performance 40,113 37,504 37,517 31,027 27,793 25,678 23,582 5,036 5,038 22,167 20,916 20,699 4,885 4,989 4,076 18,502 17,395 3,043 2,876 3,854 2,661 15,124 3,222 3,086 2,628 2,558 3,161 3,015 3,386 2,856 2,489 735 1,761 1,830 1,680 2,108 3,775 620 1,705 1,677 1,398 2,377 332
Slide 4: Summary of Consolidated Financial Results of F.Y. 2019
Summary of Consolidated Financial Results of F.Y. 2019 Operating Results F.Y.2018 F.Y.2019 Percent Change （Unit: million yen） （1-12）Results （1-12）Results Change Net sales 40,113 37,517 -2,596 -6.5% Operating income 4,989 2,856 -2,133 -42.8% （Operating income Ratio） （12.4%） （7.6%） Ordinary income 5,0
Slide 5: Quarterly performance - Consolidated Net Sales (Year-on-year)
Quarterly performance - Consolidated Net Sales (Year- on-year) 10,799 9,844 9,830 397 9,926 9,640 9,308 9,285 8,998 144 170 249 212 2,543 EMS/Other 236 279 2,344 362 Business 2,552 2,046 2,555 2,305 2,408 2,181 MVL Business 2,136 2,088 2,185 2,139 1,838 1,755 1,789 1,758 FA Business SS Business 5,24
Slide 6: Comparison of Financial Results of F.Y. 2019 between Segments
Comparison of Financial Results of F.Y. 2019 between Segments F.Y. 2018（1-12）Results F.Y. 2019（1-12）Results Operating Results Operating Percent Operating Percent Net sales income Net sales income （Unit:million yen） （Operating income Ratio） Change （Operating income Ratio） Change SS 21,157 2,789 19,80
Slide 7: Factors of change in Net Sales (Year-on-year)
Factors of change in Net Sales (Year- on-year) SS 40,113 Business FA Impact of -807 Business MVL EMS Other Exchange -1,395 Business Business Business Rate +92 +13 +196 -695 37,517 F.Y. 2018 Consolidated Net Sales F.Y. 2019 （1-12）Results -2,596million （1-12）Results (Unit: million yen) Copyright (C) 2
Slide 8: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income (Year- on-year) Sales Decrease 4,989 -1,012 Increase COS% Up Impact of in -539 Exchange Expenses Rate (Including SG&A Impact of -522 expenses at Exchange new companies) Rate -266 +206 2,856 Selling, general and Gross operating income administrative Expenses F.Y.
Slide 9: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region F.Y. 2019（1-12） Results Sales increased due to strong sales of outdoor intrusion detectors for security companies Japan and for critical, large-scale facilities. Sales fell as a result of stagnating sales of sensors for large-scale critical
Slide 10: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region F.Y. 2019（1-12） Results Sales decreased, reflecting sluggish sales of automatic door sensors after retailers Japan curbed new store openings. Sales increased due to steady sales of automatic door sensors to major customers in AMERICAs
Slide 11: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Region F.Y. 2019（1-12） 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 sluggishl
Slide 12: Business by Segment - Machine Vision Lighting (MVL) Business
Business by Segment - Machine Vision Lighting (MVL) Business Region F.Y. 2019（1-12）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. AMERICAs Sales increase
Slide 13: Dividend/Dividend Ratio and ROE Target
Dividend/Dividend Ratio and ROE Target Dividends and dividend payout ratio ROE/Shareholders’ equity ratio Year-end dividend（¥） （Unit：％） Interim dividend（¥） ROE Shareholders's equity ratio Dividend payout ratio（%） 32.5 30 30 27.5 70.1 74.5 65.0 73.2 22.5 15 15 54.1 15 12.6 12.3 15 46.7 12.5 28.6 7.4
Slide 14: Medium-Term Management Plan
Medium-Term Management Plan Copyright (C) 2020 OPTEX GROUP CO., LTD. 14
Slide 15: Key Points of Medium-Term Management Plan
Key Points of Medium-Term Management Plan Group Philosophy We aim to become a corporate group full of Venture Spirit! Let’s try new things! Medium-Term Consolidated Management Goals Aim to attain operating margin of 15% in FY2022. Carry out earnings structure reforms and increase productivity per em
Slide 16: Initiatives to change business models
Key Points of Medium-Term Management Plan Initiatives to change business models From sales of products to sales of solutions SS Business and services Focus on high-performance products and be FA Business ready for Industry 4.0 From a manufacturer of lighting for image MVL Business inspections to a t
Slide 17: Initiatives in SS Business
Initiatives in SS Business From sales of products to sales of solutions and services Copyright (C) 2020 OPTEX GROUP CO., LTD. 17
Slide 18: Initiative to Change Business Models
Initiative to Change Business Models Past Future Sales of products Sales of solutions and services Selling Offering solutions and services products Offered by OPTEX CO., LTD. with high performance, Cloud Security Parking lots high quality, high specifications Communication Sensor Water quality Safet
Slide 19: SS Business Growth Strategy
SS Business Growth Strategy 1 Spreading outdoor pre-emptive security for crime prevention Visual verification solution Copyright (C) 2020 OPTEX GROUP CO., LTD. 19
Slide 20: False alarms from existing systems hamper the spread of outdoor security sensors
False alarms from existing systems hamper the spread of outdoor security sensors. User Past Fined for the false report Monitoring that led to the police officers’ visit camera system (North America) Door-to-door Delivery operator Rush to the scene Alarm issued Without at OPTEX Zone 2 interaction at
Slide 21: The Visual Verification Solution determines whether an alarm is true or false
The Visual Verification Solution paves the way for instant determination as to whether the alarm is true or false. User Future Alarm issued Not fined Monitoring at OPTEX Zone 2 動物か・・ (North America) Door-to-door at 3:30 p.m. Delivery operator camera system on Feb. 14, 2020 Reduction of Easily added
Slide 22: Collaboration with partners accelerates the spread of systems. About CHeKT
Collaboration with partners accelerates the spread of systems. About CHeKT Company name: CHeKT Business: Development and sales of Location: Louisiana, the United States a visual verification solution Established: 2014 Strengths: ➢ A solution developed based on Founder: Wes Usie (current CEO) experie
Slide 23: SS Business Growth Strategy
SS Business Growth Strategy 2 Targets of detection changing from humans to objects Vehicle detection sensors and vacancy management solution Copyright (C) 2020 OPTEX GROUP CO., LTD. 23
Slide 24: Creating an Automobile Society with Convenience and Safety
Creating an Automobile Society with Convenience and Safety Developing and selling car detection Offering a vacancy management solution for handling sensors for coin-operated parking lots information on vacant spaces in the parking lot. that do not need to be buried This allows possible users in dist
Slide 25: SS Business Growth Strategy
SS Business Growth Strategy 3 Targets of detection changing from humans to objects Hygiene management solution Copyright (C) 2020 OPTEX GROUP CO., LTD. 25
Slide 26: Helpful for Hygiene Management in Different Situations
Helpful for Hygiene Management in Different Situations Offering a hygienic status monitoring solution. The results are viewed where measurements are undertaken. This enables the visualization of latent risks in food factories and many other locations. Situations requiring Hygiene management hygiene
Slide 27: Initiatives in FA Business
Initiatives in FA Business Focus on high-performance products and be ready for Industry 4.0 Copyright (C) 2020 OPTEX GROUP CO., LTD. 27
Slide 28: Focusing Energy on Image Sensors and Displacement Sensors
Focusing Energy on Image Sensors and Displacement Sensors Image sensor World leader in cumulative total Japan Secure labor saving shipments since release in 2007 and automation projects from the food industry. Overseas Strive to expand sales in Europe, the United States and Image sensor China, where
Slide 29: Broadening Applications of Sensor Data
Broadening Applications of Sensor Data Releasing Industry 4.0-ready IO-Link sensor and gateway. Speed up their spread in collaboration with SICK AG, Germany’s largest sensor manufacturer. IO-Link System configuration A communication technology for Interactive communication interactive communication
Slide 30: Initiatives in MVL Business
Initiatives in MVL Business From a manufacturer of lighting for image inspections to a total solution vendor Copyright (C) 2020 OPTEX GROUP CO., LTD. 30
Slide 31: Evolving into a Total Solution Vendor in the MV Area
Evolving into a Total Solution Vendor in the MV Area In Addition, Offering Solutions in Visual Inspection Automation Basic idea behind CCS’s sales strategy Users want capabilities to see and do things, not lighting power sources. Level of proposals Lighting + camera and to customers lens + board and
Slide 32: Acting as a Hub that Proposes and Offers Solutions
Acting as a Hub that Proposes and Offers Solutions Best Suited to Different Customers MV lighting and power source AI vendors Robot manufacturers manufacturers Camera manufacturers Lens manufacturers Testing room AI laboratory Robotics room CCS： A total solution vendor specializing in inspection pro
Slide 33: Consolidated Net Sales and Operating Income for Three Years (2020-2022)
Consolidated Net Sales and Operating Income for Three Years (2020 – 2022) Copyright (C) 2020 OPTEX GROUP CO., LTD. 33
Slide 34: Aiming to Achieve 10% Growth in Consolidated Net Sales
Aiming to Achieve 10% Growth in Consolidated Net Sales and Restore the Operating Income Ratio in Three Years 50,000 45,000 40,000 37,517 （Net Sales ） 1,174 1,126 6,500 / Other EMS/その他 10,456 9,449 （13.0％） MVL 4,500 FA 7,588 （10.0％） 7,140 SS 3,200 2,856 （8.0％） 営業利益 Operating Income （Ratio） （7.6％） 19,
Slide 35: https://www.optexgroup.co.jp/en/
https://www.optexgroup.co.jp /en /
Slide 36: Supporting documentation
Supporting documentation Copyright (C) 2020 OPTEX GROUP CO., LTD. 36
Slide 37: Estimated Exchange Rate and Exchange Sensitivity
Estimated Exchange Rate and Exchange Sensitivity Exchange rate F.Y. 2019 F.Y. 2020 (Unit: Yen) （Results） （Plan） JPY/USD 109.05 105.00 JPY/EUR 122.07 115.00 Impact on our fullyear F.Y. 2019（Results） F.Y. 2020（Plan） performance by a-yen Operating Operating appreciation Net sales Net sales income incom
Slide 38: 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 1,252 1,312 1,261 1,148 1,128 1,212 1,253 1,138 988 1,062 981 812 844 842 732 704 583 553 533 577 499 424 432 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 39: Quarterly performance - Consolidated Selling, general and administrative expenses
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 3,713 general and administrative 3,395 expenses +0.3% Personnel cost +3.5% Expense －1.4% 746 725 750 691 732 675 R&D expense
Slide 40: Company Overview
Company Overview Copyright (C) 2020 OPTEX GROUP CO., LTD. 40
Slide 41: 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 37,517 million JPY To see things what eyes cannot see, that is our business ! Operating Profit 2,856 milli
Slide 42: 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 43: 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 & Development Sales & Development Sales, Development Manufac
Slide 44: Company Overview _ Data
Company Overview _ Data Sales by Product Category Sales by Region EMS/ Others Asia/ 3% Oceania 12% MVL AMERICAs 25% SS 13% 37.5 Security Sensors 37.5 Japan billion yen 35% billion yen 45% (F.Y.2019) (F.Y.2019) SS FA Automatic EMEA 19% SS Door Sensors 30% Others 12% 6% EMEA : Europe, the Middle East,
Slide 45: Company Overview _ Global Market Share
Company Overview _ Global Market Share Global niche No.1 Security Automatic door Machine vision sensors sensors lighting 40% Intrusion detector 30% Automatic door 30% LED lighting for outdoor sensor for inspection Infrared sensor Sensors for large-scale critical facilities Push plate LED lighting sy
Slide 46: Business Domain _ Security sensors
Business Domain _ Security sensors Wide range of cases of installation Residential home・Commercial facilities Residence Used car dealer [Security company] Guard visit service Outdoor sensors Police rush in Europe and the United States Important facilities Oil, gas, and other Airport infrastructure f
Slide 47: Business Domain _ Automatic door sensors
Business Domain _ Automatic door sensors Share in the domestic market: Over 50% Share in the overseas market: Over 20% In 1980, we applied the far-infrared ray, Condominium entrance Commercial facilities/ multi-tenant buildings until then mainly used for military purposes, to automatic door sensors.
Slide 48: 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 49: 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 Bearing raised characte
Slide 50: Trends in Consolidated Performance and Medium-Term Management Plan
Trends in Consolidated Performance and Medium-Term Management Plan 50,000 45,000 40,113 40,000 37,504 37,517 31,027 6,500 27,793 25,678 5,036 5,038 23,582 4,500 20,916 4,885 4,989 20,699 3,222 3,086 2,876 17,395 18,502 2,628 3,043 3,775 2,661 15,124 3,161 3,015 3,386 2,856 3,200 1,680 2,108 2,558 2,
Slide 51: 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 environment issues communities Sensors for shutters that help reduce ene