Slide 1: FY2020 Financial Results
FY2020 Financial Results February 9, 2021 Tamron Co., Ltd. (Code: 7740) Tamron Co., Ltd.
Slide 2: Contents
Contents Ⅰ. Mid-Term Management Plan Ⅲ. FY2021 Forecast 1. Results of New Mid-Term Management Plan FY18-FY20 1. FY2021 Financial Forecast 2. Role of New Mid-Term Management Plan”Vision23” 2. FY2021 Forecast by Segment 1) Photographic Products 3. Basic Strategy of ”Vision23” 2) Surveillance & FA Lens
Slide 3: Mid-Term Management Plan
Ⅰ．Mid-Term Management Plan Copyright © Tamron Co., Ltd. All rights reserved. 3
Slide 4: Results of Mid-Term Management Plan FY18-FY20
Ⅰ-１. Results of Mid-Term Management Plan FY18-FY20 Mid-Term Management Plan FY18-FY20 1st year 2nd year Final year Actual Target Actual Actual Actual FY17 FY20 FY18 FY19 FY20 Sales ¥60.5B. ¥72.0B. ¥61.8B. ¥63.3B. ¥48.4B. Operating ¥4.2B. ¥6.6B. ¥5.4B. ¥7.0B. ¥3.6B. Income (% Sales) 7.0% 9.2% 8.8% 11
Slide 5: Role of New Mid-Term Management Plan Vision23
Ⅰ-２. Role of New Mid-Term Management Long-Term Vision Plan”Vision23” Target: New Mid-Term Management Plan “Vision23” has begun To be a Company respected <2019主な進捗> and needed by society ～Basic Policy～ Aiming to ◆be a Good Company Promote investment and distribute resources for ◆increase Tamron Bra
Slide 6: Basic Strategy of Vision23
Ⅰ-３. Basic Strategy of ”Vision23” Business Strategy Optimization of the business portfolio ⇒ Change of disclosure segment Mobility & Healthcare Products, Photographic Products Surveillance & FA Lenses Others ◆Keep high profitability as a core ◆ Increase sales and profits as the second ◆Launch of nex
Slide 7: Financial Target of Vision23
Ⅰ-４. Financial Target of ”Vision23” Aim for V-shaped recovery to the same New Financial Target FY21-FY23 (millions of JPY) level to before-corona-infection era Actual Target (Consolidated) Operating Income 11.5% FY23 8,000 11.0% 12% FY20 % Sales Sales ¥48.4B. ¥61.0B. 8.8% 6,000 8.1% 9% 7.4% Operatin
Slide 8: Target of Vision23 by Segment
Ⅰ-５. Target of ”Vision23” by Segment Mobility & Healthcare Photographic Products Surveillance & FA Lenses Products, Others Actual Target Actual Target Actual Target FY20 FY20 FY23 FY20 FY23 FY23 Sales ¥33.6B. ¥36.5B. Sales ¥9.1B. ¥17.0B. Sales ¥5.7B. ¥7.5B. Operating Operating More than Operating Mo
Slide 9: FY2020 Financial Results
Ⅱ．FY2020 Financial Results Copyright © Tamron Co., Ltd. All rights reserved. 9
Slide 10: FY2020 Summary
Ⅱ-１. FY2020 Summary 【Business Environment】 Economic Situation: Although the world economy recovered in the 2 nd half from the sharp drop in the 1st half, it remained sluggish. Market Situation: Digital SLR camera market significantly decreased from the previous year due to continually downward t
Slide 11: FY2020 Financial Results
II-2. FY2020 Financial Results Although the sales did not achieve the forecast, the profits (both operating income and ordinary income) achieved two-digit-increase compare to the forecast. Implemented personnel optimization at domestic plant (voluntary retirement recruitment). ⇒Net income decrea
Slide 12: FY2020 Performance Variation Factors
II-3. FY2020 Performance Variation Factors （Millions of JPY） 10000 △257 △80 8000 2,360 6,982 6000 △5,430 4000 3,575 2000 0 Actual Decrease Gross FX rate Decrease Actual FY19 of profit Impact of Sales FY20 Expenses margin up, etc. Advertising and Sales Promotion Expenses (490) M JPY (36)％ Travel Expe
Slide 13: FY2020 Results by Segment: Photographic Products
II-4. FY2020 Results by Segment 1) Photographic Products （millions of JPY） Actual Revised Actual Forecast Inc / Dec FX Impact Inc / Dec FY19 FY20(20/8/4) FY20 vs. FY19 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 46,175 34,200 33,569 (12,605) (27.3)% (490) (630) (1.8)% Operating 8,635 4,700 5,320 (3,31
Slide 14: Photographic Products - New Models
Photographic Products - New Models Category Launched in 2018 Launched in 2019 Launched in 2020 Launched Launched Launched Fixed in Dec. in Dec. in Jan. Focal 24mm F/2.8 35mm F/2.8 20mm F/2.8 OSD M1:2 (F051) OSD M1:2 (F053) OSD M1:2（F050） Wide- Launched in Jul. angle Zoom 17-28mm F/2.8 RXD (A046) Lau
Slide 15: FY2020 Results by Segment: Optical Components
II-4. FY2020 Results by Segment 2) Optical Components （millions of JPY） Actual Revised Actual Forecast Inc / Dec FX Impact Inc / Dec FY19 FY20(20/8/4) FY20 vs. FY19 (a) (c) (b) (c)-(a) % (c)-(b) % Net Sales 2,739 1,300 1,406 (1,332) (48.6)% (30) 106 8.2% Operating 137 (100) (82) (219) － － 17 － Incom
Slide 16: FY2020 Results by Segment: Commercial / Industrial-Use Optics
II-4. FY2020 Results by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Revised Actual Forecast Actual Inc / Dec FX Impact Inc / Dec FY19 FY20(20/8/4) FY20 vs. FY19 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 14,370 14,500 13,398 (972) (6.8)% (210) (1,101) (7.6)% Operating 994 900 1,01
Slide 17: FY2021 Forecast
Ⅲ． FY2021 Forecast Copyright © Tamron Co., Ltd. All rights reserved. 17
Slide 18: FY2021 Financial Forecast
Ⅲ-1. FY2021 Financial Forecast 【Economic & Market Situation】 ・Assumption of economic situation: will recover slowly but remain uncertainty. ・Assumption of interchangeable lens cameras and interchangeable lenses market: will recover as a reaction of fall in FY20. ・Assumption of Surveillance lenses an
Slide 19: FY2021 Forecast by Segment: Photographic Products
Ⅲ-2. FY2021 Forecast by Segment 1) Photographic Products （millions of JPY） Actual Forecast Inc / Dec FY20 FY21 (a) (b) (b)-(a) % Net Sales 33,569 37,000 3,430 10.2% Operating 5,320 5,700 379 7.1% Income (% Sales) 15.8％ 15.4％ (0.4)% － The sales and profits are expected to increase for both own-bran
Slide 20: FY2021 Forecast by Segment: Surveillance & FA Lenses
Ⅲ-2. FY2021 Forecast by Segment 2) Surveillance & FA Lenses （millions of JPY） Actual Forecast Inc / Dec FY20 FY21 (a) (b) (b)-(a) % Net Sales 9,100 11,500 2,399 26.4% Operating 530 900 369 69.5% Income (% Sales) 5.8％ 7.8% 2.0% － Sales in Chinese market is expected to double and show high growth in
Slide 21: FY2021 Forecast by Segment: Mobility & Healthcare Products, Others
Ⅲ-2. FY2021 Forecast by Segment 3) Mobility & Healthcare Products, Others （millions of JPY） Actual Forecast Inc / Dec FY20 FY21 (a) (b) (b)-(a) % Net Sales 5,705 5,500 (205) (3.6)% Operating 405 300 (105) (26.1)% Income (% Sales) 7.1％ 5.5% (1.6)% － Although Automotive Lens sales continue to increa
Slide 22: Activities for ESG / Process to increase corporate value
Ⅲ-3. Activities for ESG / Prosses to increase corporate value Risks and Chances Activities Output Outcome Changing external Mid-Term Management Policy Creating economic environment value Photographic Products FY23 Sales Social Issues Strengths Business we ¥61.0bill. ・High functionality on smartphone
Slide 23: Reference Data
Ⅳ．Reference Data Copyright © Tamron Co., Ltd. All rights reserved. 23
Slide 24: Financial Summary
Ⅳ-１. Financial Summary （millions of JPY） Inventories Inventries Turnover Dec 31, Dec 31, （Month） Change 2019 2020 15,000 2.5 (b)-(a) 2.0 (a) (b) 1.9 12,000 2.0 1.6 Cash & Deposits 28,384 21,417 (6,967) 9,000 1.5 Notes & Accounts 12,907 10,318 (2,588) 6,000 1.0 Receivable 10,811 9,388 8,604 3,000 0.5
Slide 25: Capital Investment, Depreciation, & R&D Expenses
Ⅳ-２. Capital Investment, Depreciation, & Research & Development Expenses Capital Investment & Depreciation Research & Development Expenses (Ratio of R&D Expenses （millions of JPY） （millions of JPY） /Net Sales) Capital Ivestment Depreciation 6,000 6,000 12% 9.7% 5,000 5,000 9.3% 10% 8.3% 4,000 4,000
Slide 26: Cash Flow Situation
Ⅳ-３. Cash Flow Situation （millions of JPY） FY19 FY20 10,925 12,000 8,062 Operating CF 7,554 7,000 Investing CF Free CF 2,000 Financing CF (3,000) (1,923) (2,112) (2,863) (8,000) (4,780) (13,000) (12,334) (18,000) FY19 FY20 Cash Flow from Operating Activities 10,925 7,554 Cash Flow from Investing Act
Slide 27: Cash Dividends Outlook & Key Performance Indicators
Ⅳ-４. Cash Dividends Outlook & Key Performance Indicators （JPY） Cash Dividends Key Performance Indicators （JPY） Year-End Dividend 250 12% 80 80% 11.0% EPS Interm Dividend ROE Dividend Payout Ratio ROA 10% 200 9.1% 10.1% 60 56.3% 60% 7.6% 8% 8.6% 45.7% 150 6.6% 5.9% 35.8% 35.9% 6% 40 40% 32.8% 6.3% 10
Slide 28: Impact of Foreign Exchange Rate Fluctuations
Ⅳ-５. Impact of Foreign Exchange Rate Fluctuations FY2020 (JPY) （millions of JPY） Exchange Rate Impact Actual Actual Operating Net Sales FY19 FY20 Income USD 109.04 106.77 (560) 10 EUR 122.06 121.92 (10) (10) Others - - (160) (80) Total - - (730) (80) (Impact on FY2019 Actual performance) Forecast FY
Slide 29: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for FY2020 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 the company’s presentation are b