Optex Group Company Limited · TSE:6914

Optex — Q2 FY2023 Earnings Presentation

39 slides from Optex's earnings presentation, Aug 8, 2023

  1. Slide 1: Presentation Material for the Second Quarter of FY2023

    Presentation Material for the Second Quarter of FY2023 (Jan.1 to Jun.30, 2023) OPTEX GROUP CO., LTD. August 8, 2023 （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

  2. Slide 2: Agenda

    1．Q2 FY2023 Overview of Financial Results 2．FY2023 Consolidated Earnings Forecasts, Shareholder Return 3．Initiatives for the Advancement of Growth Strategy © 2023 OPTEX GROUP CO., LTD. 2

  3. Slide 3: Key Points of Q2 FY2023 Financial Results

    Key Points of Q2 FY2023 Financial Results - Net sales dropped 0.2% year on year. In conditions of economic uncertainty, customers in Japan and overseas withhold investments. In the SS Business, large overseas projects were postponed. In the IA Business, semiconductor-related capital investments were

  4. Slide 4: Summary of Q2 FY2023 Financial Result

    Summary of Q2 FY2023 Financial Result Q2(1-6) FY2022 Q2(1-6) FY2023 Percent (Unit: million yen) Change Results Results Change Net sales 27,241 27,197 -44 -0.2% Operating income 3,590 2,659 -931 -25.9% （Operating income Ratio） （13.2%） （9.8%） Ordinary income 4,297 2,931 -1,366 -31.8% Profit attributab

  5. Slide 5: Comparison of Financial Results of Q2 FY2023 between Segments

    Comparison of Financial Results of Q2 FY2023 between Segments Q2(1-6) FY2022 Results Q2(1-6) FY2023 Results Operating Percent Operating Percent (Unit:million yen) Net sales income Net sales income (Operating income Ratio) Change (Operating income Ratio) Change SS 11,509 1,554 12,096 +5.1% 1,263 -18.

  6. Slide 6: Factors of change in Net Sales (Year-on-year)

    Factors of change in Net Sales（Year- on-year） Impact of SS IA Exchange Business Business Rate 27,241 -103 -1,035 +1,155 27,197 EMS Other Business Business -77 +16 FA -560 SS +690 MVL -258 IA +447 IPC -63 EMS +18 MECT -154 Q2(1-6) FY2022 Consolidated Net Sales Q2(1-6) FY2023 Results -¥44 million Resu

  7. Slide 7: Factors of change in Operating Income (Year-on-year)

    Factors of change in Operating Income（Year- on-year） Impact of Increase Sales Exchange in Decrease Rate Expenses Impact of 3,590 -613 Increase +811 -594 Exchange in Cost Rate Rate -202 -333 2,659 Rise in MECT-related cost rate Selling, general and Gross operating income administrative Expenses Q2(1-

  8. Slide 8: Quarterly performance - Consolidated Net Sales

    Quarterly performance - Consolidated Net Sales (Year-on-year) 14,343 13,901 13,822 13,340 13,227 512 13,375 EMS/Other Business 274 499 255 546 422 399 231 397 150 116 1,150 1,107 311 11,776 11,817 11,299 1,304 782 886 916 IA Business(MECT) 10,974 301 449 772 271 270 759 826 3,425 3,502 977 3,413 3,2

  9. Slide 9: Business by Segment - SS Business (Security Sensors)

    Business by Segment - SS Business(Security Sensors) Region Q2(1-6) FY2023 Overview Quarterly Sales by Region (Unit: million yen) - Sales of outdoor alarm sensors remained solid. 4,227 Japan - Brisk inquiries were received from large-scale 4,148 4,110 4,164 4,001 critical facilities. 3,808 544 586 67

  10. Slide 10: Business by Segment - SS Business (Automatic Door Sensors)

    Business by Segment - SS Business(Automatic Door Sensors) Region Q2(1-6) FY2023 Overview Quarterly Sales by Region (Unit: million yen) - Numerous inquiries were received as stable Japan product supply capabilities earned high marks from large automatic door manufacturers in Japan. 1,454 1,397 1,420

  11. Slide 11: Business by Segment - IA Business (FA)

    Business by Segment - IA Business(FA) Region Q2(1-6) FY2023 Overview Quarterly Sales by Region (Unit: million yen) - Inquiries for IO-Link related products expanded steadily. Japan 2,880 - Sales of products for semiconductors were 2,774 2,697 2,710 sluggish due partly to inventory adjustments. 2,631

  12. Slide 12: Business by Segment - IA Business (MVL)

    Business by Segment - IA Business(MVL) Region Q2(1-6) FY2023 Overview Quarterly Sales by Region (Unit: million yen) - Inquiries for automotive-related applications remained solid. Japan - A private show with a focus on the exhibition of 3,413 3,425 3,502 solutions was well received, contributing to

  13. Slide 13: Business by Segment - IA Business (IPC)

    Business by Segment - IA Business(IPC) Region Q2(1-6) FY2023 Overview Quarterly Sales by Region (Unit: million yen) - Sales slowed due to delays in product supply Japan caused by component shortages etc. 1,304 1,150 1,107 977 916 886 826 772 759 782 1,301 1,140 1,104 971 878 915 812 762 749 782 Indu

  14. Slide 14: Business by Segment - IA Business (MECT)

    Business by Segment - IA Business(MECT) Region Q2(1-6) FY2023 Overview Quarterly Sales by Region (Unit: million yen) - Established a production system for the delivery of Delivery of secondary Japan large-scale projects for secondary battery battery manufacturing manufacturing equipment in Q3 and be

  15. Slide 15: Agenda

    1．Q2 FY2023 Overview of Financial Results 2．FY2023 Consolidated Earnings Forecasts, Shareholder Return 3．Initiatives for the Advancement of Growth Strategy © 2023 OPTEX GROUP CO., LTD. 15

  16. Slide 16: FY2023 Consolidated Earnings Forecasts

    FY2023 Consolidated Earnings Forecasts The full-year forecast has been revised downwards, in view of the impact of prolonged inflation outside Japan and the suppression of capital investment in Japan and overseas. (Announced on July 28) FY2023 FY2023 Changes from FY2022 Revised Forecast Previous YoY

  17. Slide 17: Shareholder Return

    Shareholder Return +4yen Year-end dividend（¥） 40 Interim dividend（¥） +6yen 36 Acquisition of treasury shares 32.5 30 30 2019 2021 20 1.0 1.0 18 Amount billion yen billion yen 15 15 15 No. of 670,000 630,000 shares shares shares 18 20 17.5 15 15 2019 2020 2021 2022 2023(Plan) Dividend payout ratio 54

  18. Slide 18: Agenda

    1．Q2 FY2023 Overview of Financial Results 2．FY2023 Consolidated Earnings Forecasts, Shareholder Return 3．Initiatives for the Advancement of Growth Strategy © 2023 OPTEX GROUP CO., LTD. 18

  19. Slide 19: Initiatives for the Advancement of Growth Strategy

    Initiatives for the Advancement of Growth Strategy Business Model Reforms Selling of Standalone Products Selling of Solutions SS Business Enhance the Direct Marketing Strategy IA Business (FA segment) Advance the “Challenger Strategy" IA Business (MVL segment) Evolve into a Comprehensive Solution Ve

  20. Slide 20: Business Model Reforms - SS Business Direct Marketing

    Business Model Reforms SSSS事業 Business Enhance the Direct Marketing Strategy Business Involving Distributors Direct Marketing Problems Incorporate them into new Allow us to accurately understand product development and - Distance from customers and markets - Delays in response to changes the needs o

  21. Slide 21: Business Model Reforms - IA Business (FA) Challenger Strategy

    Business Model Reforms IA Business (FA segment) Advance the “Challenger Strategy" ▶ Direct consulting and marketing ▶ Offer solutions centering IO-Link master *IO-Link: A communication technology for interactive communication between sensors and the control system for the exchange of different data

  22. Slide 22: Business Model Reforms - IA Business (MVL) Solution Vendor

    Business Model Reforms IA Business (MVL segment) Evolve into a Comprehensive Solution Vendor MV lighting and power Robot AI vendors source manufacturers manufacturers Camera manufacturers Lens manufacturers Testing room AI laboratory Robotics room A total solution vendor specializing In inspection p

  23. Slide 23: Business Model Transition and Trend in Performance

    Business Model Transition and Trend in Performance 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 s

  24. Slide 24: https://www.optexgroup.co.jp /en /

    https://www.optexgroup.co.jp /en /

  25. Slide 25: Company Overview

    Company Overview © 2023 OPTEX GROUP CO., LTD. 25

  26. Slide 26: 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 54,811 million JPY To see things what eyes cannot see, that is our business ! Operating Profit 6,303 milli

  27. Slide 27: Trends in Consolidated Performance

    Trends in Consolidated Performance 74,000 2019 67,000 - U.S.-China trade tensions, 2020 economic slowdown in China - COVID-19 - Deceleration in demand for smartphone- related capital investment 57,000 54,811 2016 - Acquired CCS Inc. 45,866 40,113 37,504 37,517 10,000 2008 34,846 (14%) - Lehman Broth

  28. Slide 28: 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

  29. Slide 29: Holding Company Structure

    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

  30. Slide 30: Company Overview - Data

    Company Overview _ Data Sales by Product Category Sales by Region 3% EMS/Others IA（MECT）2% IA AMERICAs (IPC) 13% 8% SS Security Asia/ Sensors Oceania IA (MVL) 54.8 29% 14% 54.8 Japan 24% billion yen 45% billion yen (FY2022) SS (FY2022) Automatic Door Sensors SS 10% EMEA IA (FA) Others 28% 20% 4% © 2

  31. Slide 31: 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 Laser scan sensor Camera sensor for large-scale LED lighting systems critical

  32. Slide 32: 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

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: 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

  36. Slide 36: 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

  37. Slide 37: 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

  38. Slide 38: ESG Efforts

    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] Aiming to b

  39. Slide 39: https://www.optexgroup.co.jp /en /

    https://www.optexgroup.co.jp /en /

Optex Group — Q2 FY2023 Earnings Presentation on 6ix