Slide 1: FY2014 Financial Results
FY2014 Financial Results February 10, 2015 Tamron Co., Ltd. (Code: 7740)
Slide 2: Contents
Contents Ⅰ. FY2014 Financial Results 1. Business Briefing P.4 3. Research & Development expenses P.20 2. FY2014 Summary P.5 4. Inventories/Liabilities with Interests P.21 3. FY2014 Half-Year Financial Results P.6 5. Cash Flow Statement P.22 4. FY2014 Financial Results P.7 6. Outlook for Cash Dividen
Slide 3: Ⅰ. FY2014 Financial Results
Ⅰ．FY2014 Ⅰ．決算概要 Financial Results FY2014 Financial Results 3
Slide 4: Business Briefing
Ⅰ-１. Business Briefing Company Profile Business Segment Total subsidiaries overseas : 9 Photographic Products Domestic offices: 4 / Sales offices: 5 Interchangeable lenses for cameras （SLR / MILC） ISO9001, ISO14001 certified ISO/TS16949 certified Optical Components Camcorder lenses Net s
Slide 5: FY2014 Summary
Ⅰ-２. FY2014 Summary Business environment World economy: The US market was on a track to gradual recovery, but Japan and Europe showed signs of stagnation and weakness in consumers’ mind. Currency exchange trend: Yen’s depreciation continued, particularly in the 4th quarter. Digital camera mark
Slide 6: 2014 Half-Year Financial Results
Ⅰ-３. 2014 Half-Year Financial Results （millions of yen） 1st H 1st H 2nd H 2nd H Change Change FY13 FY14 FY13 FY14 Net Sales 31,453 32,770 ＋1,317 36,999 40,850 ＋3,851 Operating Income 2,360 2,565 ＋205 2,872 3,510 ＋637 (% Sales) 7.5% 7.8% ＋0.3% 7.8% 8.6% ＋0.8% (Net Sales/million yen) Net Sales (Operat
Slide 7: FY2014 Financial Results
Ⅰ-4. FY2014 Financial Results （millions of yen） Actual Forecast Actual Inc / Dec Inc / Dec FX FY13 FY14 FY14 Impact (a) (b) (c) (c)-(a) % (c)-(b) % vs. FY13 Net Sales 68,452 71,000 73,621 5,168 107.6% 2,621 103.7% 4,550 Operating 5,233 5,800 6,076 843 116.1% 276 104.8% 850 Income (% Sales) 7.6% 8.2%
Slide 8: FY2014 Results by Business Segment
Ⅰ-5. FY2014 Results by Business Segment （millions of yen） Inc / Dec Inc / Dec Actual Forecast Actual FX Impact FY13 (a) FY14 (b) FY14 (c) (c)-(a) % (c)-(b) % vs. FY13 Net Sales 48,492 52,500 53,932 5,440 111.2% 1,432 102.7% 3,100 Operating Income 4,280 5,900 5,853 1,573 136.7% (46) 99.2% 650 Photogr
Slide 9: FY2014 Quarterly Results by Business Segment
Ⅰ-６. FY2014 Quarterly Results by Business Segment （millions of yen） 1Q 2Q 3Q 4Q Annual FY14 FY14 FY14 FY14 FY14 Net Sales 9,387 13,702 13,584 17,257 53,932 Photographic Products Operating Income 619 1,692 1,761 1,780 5,853 (% Sales) 6.6% 12.3% 13.0% 10.3% 10.9% Net Sales 1,590 1,928 1,807 1,705 7,03
Slide 10: Ⅱ. FY2015 Financial Forecast
Ⅱ．2015年予想 Ⅱ．FY2015 Financial Forecast FY2014 Financial Results 10
Slide 11: FY2015 Forecast
Ⅱ-１. FY2015 Forecast Expecting increases in both sales and profits for two consecutive years. （millions of yen） Actual Actual Actual Forecast Forecast Forecast Inc/Dec 1st H 2nd H FY14 1st H 2nd H FY15 FY14 FY14 (a) FY15 FY15 (b) (b)-(a) (b)/(a) Net Sales 32,770 40,850 73,621 36,200 42,300 78,500
Slide 12: FY2015 Contributing Factors for Performance
Ⅱ-2. FY2015 Contributing Factors for Performance Counting on an increased profit, even excluding exchange effects. Anticipating averse exchange effects to profits due to euro’s depreciation, but aiming at increasing profits with cost reduction efforts. （millions of yen） FY14 FY15 Inc / Dec (Actual
Slide 13: FY2015 Forecast (Sales / Operating Income)
Ⅱ-3. FY2015 Forecast (Sales / Operating Income) （millions of yen） Net Sales Operating Income 1st H 2nd H % Sales 10.0% 100,000 10,000 78,500 8.3% 8.4% 73,621 8,000 7.6% 8.0% 80,000 68,452 6,600 6,076 60,000 2nd H 6,000 6.0% 2nd H 5,233 2nd H 2nd H 2nd H 40,000 4,000 2nd H 4.0% 20,000 1st H 2,000 2.0
Slide 14: FY2015 Forecast by Segment: Photographic Products
Ⅱ-４. FY2015 Forecast by Segment 1) Photographic Products （millions of yen） Net Sales Operating Income 1st H 2nd H 60,000 56,900 10,000 % Sales 15.0% 53,932 50,000 48,492 11.2% 8,000 10.9% 12.0% 40,000 2nd H 8.8% 6,400 2nd H 6,000 5,853 9.0% 2nd H 30,000 4,280 2nd H 4,000 2nd H 6.0% 20,000 2nd H 1st
Slide 15: FY2015 Forecast by Segment: Optical Components
Ⅱ-４. FY2015 Forecast by Segment 2) Optical Components （millions of yen） Net Sales Operating Income 10,000 1st H 2nd H 1,500 % Sales 15.0% 12.3% 8,000 7,629 7,032 1,200 12.0% 6,200 9.4% 938 6,000 8.1% 9.0% 2nd H 900 2nd H 2nd H 2nd H 664 4,000 500 600 6.0% 2nd H 2nd H 2,000 1st H 1st H 300 1st H 3.0%
Slide 16: FY2015 Forecast by Segment: Commercial / Industrial-use Optics
Ⅱ-４. FY2015 Forecast by Segment 3) Commercial / Industrial-use Optics （millions of yen） Net Sales Operating Income 1st H 2nd H 18,000 % Sales 15,400 4,000 20.0% 15,000 19.7% 12,330 12,656 3,000 17.3% 15.0% 12,000 15.6% 2nd H 2,429 2,400 2,190 2nd H 9,000 2nd H 2,000 10.0% 2nd H 2nd H 2nd H 6,000 1,0
Slide 17: Ⅲ. Financial Situation
Ⅲ．財務状況 Ⅲ．Financial Situation FY2014 Financial Results 17
Slide 18: Financial Summary
Ⅲ-１. Financial Summary （millions of yen） FY13 FY14 Change Remarks (a) (b) (b)-(a) Cash and deposits 14,297 15,915 1,618 Notes and accounts receivable 14,898 18,653 3,754 Thanks to increased sales Through inventory reduction and so on Inventories 11,055 10,536 (519) (about 1.2 billion yen, excluding
Slide 19: Capital Investment & Depreciation
Ⅲ-２. Capital Investment & Depreciation （millions of yen） 10,000 8,000 Capital Investment 6,130 Depreciation Depreciation 4,100 6,000 Depreciation 3,182 3,812 Depreciation Capital Investment 3,440 2,800 4,000 Capital Investment Capital Investment 3,656 2,429 2,000 Net Income Net Income Net Income Net
Slide 20: Research & Development expenses
Ⅲ-３. Research & Development expenses （millions of yen） （％） 4,000 8.0 3,000 5.4 6.0 5.0 4.7 4.7 2,000 4.0 3,492 3,699 3,700 3,217 1,000 2.0 0 0.0 FY12(A) FY13(A) FY14(A) FY15(F) R&D 3,492 3,217 3,699 3,700 Ratio 5.4 4.7 5.0 4.7 * R&D cost/Net sales ratio * (A):Actual (F):Forecast FY2014 Financial Res
Slide 21: Inventories / Liabilities with Interests
Ⅲ-４. Inventories / Liabilities with Interests Inventories Liabilities with Interests (millions of yen) (Month) (millions of yen) （％） 15,000 2.5 6,000 12.0 2.2 9.4 12,000 2.0 8.8 1.8 4,500 9.0 1.5 9,000 1.5 5.9 3,000 6.0 5,475 5,714 6,000 12,363 1.0 11,055 4,098 10,536 1,500 3.0 3,000 0.5 0 0.0 FY12
Slide 22: Cash Flow Statement
Ⅲ-５. Cash Flow Statement （millions of yen） FY13 FY14 9,602 10,000 Operating CF 8,000 Investing CF 6,208 Free cash flow 6,000 3,856 Financing CF 3,561 4,000 2,000 0 (2,000) (1,324) (4,000) (2,351) (3,009) (6,000) (6,041) (8,000) FY13 FY14 Cash flows from operating activities 9,602 6,208 Cash flows fr
Slide 23: Outlook for Cash Dividends
Ⅲ-６. Outlook for Cash Dividends Annual dividend for FY15 is expected the dividend increase 5 yen compared to FY14. （yen） FY15 FY12 FY13 FY14 (Forecast) Interim 20.00 20.00 20.00 25.00 Year-end 30.00 30.00 30.00 30.00 Annual 50.00 50.00 50.00 55.00 Dividends Payout Ratio 35.2% 42.9% 35.7% 35.9% (Cons
Slide 24: Reference Data: Key Performance Index
Ⅲ-７. Referential Data 1) Key Performance Index （Yen） （％） 200.00 12.0 10.1 9.2 9.0 10.0 150.00 9.8 8.5 8.0 7.8 7.9 100.00 7.3 6.0 141.86 140.14 153.00 116.48 4.0 50.00 2.0 0.00 0.0 FY12(A) FY13(A) FY14(A) FY15(F) EPS 141.86 116.48 140.14 153.00 ROE 10.1 7.3 7.8 7.9 ROA 9.8 8.5 9.2 9.0 ROE＝Net Income
Slide 25: Reference Data: Impact of Currency Exchange Rate Fluctuations
Ⅲ-７. Reference Data 2) Impact of Currency Exchange Rate Fluctuations Actual FY2014 (yen) （million of yen） Exchange Rate Effect Actual Actual Operating Net Sales FY13 FY14 Income USD 97.73 105.79 3,100 0 Euro 129.81 140.37 1,050 900 Others - - 400 (50) Total - - 4,550 850 (Impact on FY2014 Actual per
Slide 26: Ⅳ. Mid-Term Strategy
Ⅳ．中期戦略 Ⅳ．Mid-Term Strategy FY2014 Financial Results 26
Slide 27: Mid-Term Management Goals for FY2017
Ⅳ-１. Corporate Tagline Ⅳ‐２. Mid-Term Management Goals for FY2017 Net Sales：¥95.0 billion Operating Income：¥9.5 billion （Operating Income Ratio 10%） ROE：10% or more FY2014 Financial Results 27
Slide 28: Strategy Towards FY2017 by Segment: Photographic Products
Ⅳ-３. Strategy Towards FY2017 by Segment 1) Photographic Products Target ： 68.0 billion yen （71.6% of total net sales） 2017 Sequential introduction of epoch-making new products in our own-brand lens range Mid-Term Establishment of efficient new product development framework Target Strengthening
Slide 29: Strategy Towards FY2017 by Segment: Optical Components
Ⅳ-３. Strategy Towards FY2017 by Segment 2) Optical Components Target： 4.5 billion yen （4.7% of total net sales） 2017 Increased focus on higher value-added products, to secure profits and avoid cost cutting competition Mid-Term Target Creating new markets by leveraging our own advantages in speci
Slide 30: Strategy Towards FY2017 by Segment: Commercial / Industrial-use Optics
Ⅳ-３. Strategy Towards FY2017 by Segment 3) Commercial / Industrial-use Optics Target： 22.5 billion yen （23.7% of total net sales） Stronger sales operations in the worldwide market through technological innovation in surveillance camera lenses 2017 Promoting new businesses through co-creation Mid
Slide 31: Enhanced Production System
Ⅳ-４. Enhanced Production System Continued efforts for steadily increasing production volume, Vietnam－ to become a cost competitive factory Category Current situation Number of Employee 200 (Jul, 2013) ⇒ 1,180 (Feb, 2015) Processing Lens Element, Metal, Assembly Production Surveillance camera lenses
Slide 32: Issues on Mid-to Long-Term Management
Ⅳ-５. Issues on Mid-to Long-Term Management 1. Strengthening CSR management and internal control, while working on enhancing capital efficiency 2. Aiming at shortening the lead time from development to production launch. 3. Continued efforts for further business expansion through measures to enhance
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