Slide 1: FY2023 Financial Results
FY2023 Financial Results February 8, 2024 Tamron Co., Ltd. (Code: 7740)
Slide 2: Contents
Contents I. Review of the previous medium-term IV. FY2024 Financial Forecast management plan “Vision23” 1. FY2024 Financial Forecast 1. Consolidated Results of the “Vision 23” 2. FY2024 Forecast by Segment 2. Assessment of the “Vision 23” action plans by (1) Photographic Products segment (2) Surveil
Slide 3: I. Review of the previous medium-term management plan Vision23
I. Review of the previous medium-term management plan “Vision23”
Slide 4: I.-1. Consolidated Results of the Vision 23
I.-1. Consolidated Results of the “Vision 23” Medium-Term Management Plan”Vision23” 1st year 2nd year Final year 2020 2023 Target 2021 2022 2023 Net Sales ￥48.4B. ￥61.0B. Net Sales ￥57.5B. ￥63.4B. ￥71.4B. Operating Income ￥3.6B. ￥7.0B. Operating Income ￥7.4B. ￥11.0B. ￥13.6B. (% Sales) 7.4% 11.5% (%
Slide 5: I.-2. Assessment of the Vision 23 action plans by segment
I.-2. Assessment of the Vision 23 action plans by segment Results ◆ Our main photographic products business achieved high growth with a substantial improvement in profitability. ◆ Sales of automotive lenses achieved more than 7 billion yen, whereas, the sales growth of the surveillance and FA lenses
Slide 6: II. New medium-term management plan Value Creation 26
II. New medium-term management plan “Value Creation 26”
Slide 7: II.-1. Positioning of Value Creation26
II.-1. Positioning of "Value Creation26” Launch of the new medium-term plan "Value Creation26” Medium-term plan Vision23 長期ビジョン ”Value Creation26” 2018～2020 2021～2023 Long-term vision 2024～2026 Under Vision23’s achievements, we will overcome challenges, achieve high-quality leaps, and Aiming to maxi
Slide 8: II.-2. Outline of Value Creation26 Basic Framework
II.-2. Outline of ”Value Creation26“ ①Basic Framework “Value Creation26” Under Vision23’s achievements, we will overcome challenges, achieve high-quality leaps , and maximize corporate value through new endeavors. Business Strategy Financial Strategy ◆ Deepen the optimization of business portfolios
Slide 9: II.-2. Outline of Value Creation26 Management Numerical Targets
II.-2. Outline of ”Value Creation26“ ②Management Numerical Targets 『Value Creation26』 ◆ Achieve growth in sales and profit while maintaining high Actual Target profitability and efficiency. Targeting our first major 2023 milestone of 80 billion yen in sales and 15 billion yen in 2026 operating incom
Slide 10: II.-3. Business Strategy: Functional Strategy
II.-3. Business Strategy of the “Value Creation 26” ①Functional Strategy Business Strategy Ensure continuous growth by allocating appropriate resources to each business ◆ Advance the structure of the Photographic products business as a cash cow ◆ Expand scale in both “Surveillance＆FA lenses”, and “M
Slide 11: II.-3. Business Strategy: Photographic Products
II.-3. Business Strategy of the “Value Creation 26” ②Photographic Products Inspire and enrich people’s lives Photographic Products Improve the high-profit structure as core business 2023 2026 ◆ Accelerate the development of own-brand product Net Sales ¥53.0B. ¥56.0B. ※Current：5 models/per year Own-b
Slide 12: II.-3. Business Strategy: Surveillance & FA Lenses
II.-3. Business Strategy of the “Value Creation 26” ③Surveillance & FA Lenses Create a secure and safe society Surveillance & FA Lenses 2023 2026 Net Sales ¥9.8B. ¥14.5B. Re-transform into a growth business, targeting Severance lenses ¥5.9B. ¥7.4B. for more than 10% operating income on net sales FA
Slide 13: II.-3. Business Strategy: Mobility & Healthcare Products, Others
II.-3. Business Strategy of the “Value Creation 26” ④Mobility & Healthcare Products, Others Healthy and secure lifestyle Mobility & Healthcare Products, Others Further growth in automotive and medical business 2023 2026 & accelerate creation of new business Net Sales ¥8.6B. ¥12.5B. ◆ Focus on the sa
Slide 14: II.-4. Financial Strategy: Basic policy
II.-4. Financial Strategy of the “Value Creation 26” ①Basic policy Building effective management while ensuring stability Appropriate Capital Structure Enhanced Shareholder Return Sustain an ROE of appx.14% Stable shareholder returns Secure capital at twice of the cost & flexible repurchase of treas
Slide 15: II.-4. Financial Strategy: Aimed Capital Structure
II.-4. Financial Strategy of the “Value Creation 26” ② Aimed Capital Structure Optimal Capital Structure Shareholder Return Aimed Capital 2024～2026 Structure Flexible Share Repurchases Over 80% Target of total Return Ratio: approx. 60% To the Targeting to 70% level Approx.75% Over 5 mos. Increase Di
Slide 16: II.-4. Financial Strategy: Cash Allocation
II.-4. Financial Strategy of the “Value Creation 26” ③Cash Allocation Yr. 2021～2023 Yr. 2024～2026 Billons of JPY Yr. 2024～2026 Yr. 2024～2026 Cumulated Cumulated Cumulated Cumulated R&D Inv. Approx.¥16.6B. Approx.¥20.0B.(Vs. previous medium-term1.2times） 12.0 ◆ Fundamental Tech Development： ¥12.0B. C
Slide 17: II.-4. Financial Strategy: Strategic Investment
II.-4. Financial Strategy of the “Value Creation 26” ④Strategic Investmentーwith an eye towered the 2030s and next 100 years Accelerate expansion of business domain by leveraging tech/ Early commercialization of the new business by ”Technology Strategy” Business expansion aimed at contributing to Ope
Slide 18: II.-5. Management with a focus on capital costs and stock prices
II.-5. Management with a focus on capital costs and Stock prices ①Status of action By promoting management with awareness of capital costs, aimed to improve and maximize corporate value with achieving ROE over 14%, which is double of the cost of shareholder’s equity（approx.7%） 2020 2023 Vison of Val
Slide 19: II.-5. Stock Initiatives
II.-5. Management with a focus on capital costs and Stock prices ②Stock Initiatives Repurchase of Shares of Common Stock The purpose is to enhance shareholder returns, while improving capital efficiency and ensuring a flexible capital policy (1) Type of stock to be repurchased Common Stock Up to 400
Slide 20: II.-6. ESG/Sustainability Strategy
II.-6. ESG/Sustainability Strategy E nvironment S ocial G overnance Reduce environmental burden through Promote human capital management, Reform the Corporate Governance carbon neutral, in-house products designing and services DE&I, and job satisfaction Structure Promote and drive the evolution of t
Slide 21: II.-6. Environmental Vision 2050
II.-6. ESG/Sustainability Strategy ①Environmental Vision 2050 To realize a spiritual-rich society where everyone can live fulfilling lives “Environmental Vision 2050” Mission Fulfilling Lives Vision for society Decarbonized society Recycling-oriented society Society in harmony with nature 2050 Targe
Slide 22: II.-6. Promote human capital management
II.-6. ESG/Sustainability Strategy ②Promote human capital management Human Resources Strategy Pasic Policy ◆ The key to realize Tamron’s vision and management strategies is the human resource strategy aligned with the management strategies. For this purpose, we will accelerate the priority on revita
Slide 23: II.-6. Improve Governance
II.-6. ESG/Sustainability Strategy ③Improve Governance Restore stakeholder’s trust by thoroughly implementing measures to prevent a recurrence, along with the overall improvement of the corporate governance system, including the transition to a company with an audit & supervisory committee. ◆ Establ
Slide 24: II.-6. Progress on recurrence prevention measures
II.-6. ESG/Sustainability Strategy ④Progress on recurrence prevention measures Completion Recurrence prevention measures Contents of the initiative Progress (Target) Review officer-related entertainment expenses, establish new rules ① Revise job authority details (set upper limits for entertainment
Slide 25: III. FY2023 Financial Results
III. FY2023 Financial Results
Slide 26: III-1. FY2023 Summary
Ⅲ-１. FY2023 Summary Environment Economy Market ◆ The economy is on a gradual recovery trend, despite continued ◆ In the interchangeable lens camera and lens market, the uncertainty due to prolonged Russia’s invasion of Ukraine, military quantity remains flat, but the total amount increases due to th
Slide 27: III-2. 2023 Full-Year Financial Results
Ⅲ-２. 2023 Full-Year Financial Results ◆ Despite favorable foreign exchange effects, sales and income increased by double digits as the effects of customer production adjustments due to the difficulty of procuring electronic components because of semiconductor shortages, and the effects of raising co
Slide 28: III-3. Factors Behind Variance in Operating Income
Ⅲ-３. Factors Behind Variance in Operating Income Net sales and operating income increased even without favorable foreign exchange effects (Two-digit-increase in operating income by about 17% YoY) （Millions of JPY） Impact of exchange rate on net sales: 13,607 +3,170 million JPY 989 11,038 2,090 (770)
Slide 29: III-4. Results by Segment: Photographic Products
Ⅲ-４. 2023 Full-Year Financial Results by Segment ①Photographic Products Revised VS. 2022 VS. 2022 VS. Forecast 2023 Actual Forecast Actual （Millions of JPY） Inc./Dec. % FX Impact Inc./Dec. % 2022 2023 2023 Net Sales 45,519 53,500 53,032 7,513 16.5% 2,270 (467) (0.9)% Operating Income 11,158 13,800 1
Slide 30: Photographic Products - New Models
Photographic Products-New Models 2021 2022 2023 June May Wide-angle Zoom 11-20mm F/2.8 RXD (B060) 11-20mm F/2.8 RXD (B060) The 4th model for FUJIFILM X-mount Jan. Oct. Jul. Oct. Oct. Standard Zoom 17-70mm F/2.8 28-75mm F/2.8 17-70mm F/2.8 20-40mm F/2.8 17-50mm F/4 VXD (A068) VC RXD (B070) VXD G2 (A0
Slide 31: Surveillance & FA Lenses
②Surveillance & FA Lenses Revised VS. 2022 VS. 2022 VS. Forecast 2023 Actual Forecast Actual Inc./Dec. % FX Impact Inc./Dec. % （Millions of JPY） 2022 2023 2023 Net Sales 11,236 10,000 9,786 (1,450) (12.9)% 710 (213) △2.1% Operating Income 1,399 700 716 (682) (48.8)% 290 16 +2.3％ (% Sales) 12.5％ 7.0％
Slide 32: Mobility & Healthcare, Others
③Mobility ＆Healthcare, Others. Revised VS. 2022 VS. 2022 VS. Forecast 2023 Actual Forecast Actual Inc./Dec. % FX Impact Inc./Dec. % （Millions of JPY） 2022 2023 2023 Net Sales 6,689 8,700 8,607 1,917 28.7% 190 (92) (1.1)% Operating Income 1,061 1,400 1,492 430 40.6% (110) 92 6.6％ (% Sales) 15.9％ 16.1
Slide 33: Summary of revenue and operating income by segment
Summary of revenue and operating income by segment （Millions of JPY） 2023 1Q YoY (%) QoQ (%) 2023 2Q YoY (%) QoQ (%) 2023 3Q YoY (%) QoQ (%) 2023 4Q YoY (%) QoQ (%) Photographic Net Sales 9,615 1.3 (16.8) 13,809 4.3 43.6 14,207 26.6 2.9 15,399 33.2 8.4 Products Operating Income 2,666 20.0 13.3 3,839
Slide 34: IV. FY2024 Financial Forecast
IV. FY 2024 Financial Forecast
Slide 35: IV-1. FY2024 Financial Forecast
Ⅳ-１. FY2024 Financial Forecast Environment Economy Market ◆ The situation remains highly uncertain due to the prolonged Russia’s ◆ In the interchangeable lens camera and lens market, the quantity invasion of Ukraine, military conflict between Israel and Palestine, remains flat, but the total amount
Slide 36: Photographic Products
① Photographic Products VS. 2023 Forecast （Millions of JPY） Actual 2023 2024 Inc./Dec. % OEM Net Sales 53,032 54,500 1,467 2.8% ¥19.3 B. ¥20.2 Operating Income 14,008 15,000 991 7.1% Net Sales (% Sales) 26.4％ 27.5％ 1.1% - ◆ Although OEM sales slightly decline, plan to continue increase in Own-brand
Slide 37: Surveillance & FA Lenses
②Surveillance & FA Lenses VS. 2023 Forecast Camera Module （Millions of JPY） Actual 2023 2024 Inc./Dec. % Net Sales ¥2.2 B. 9,786 11,600 1,813 18.5% ¥0.8 Operating Income 716 1,000 283 39.6％ TV conference lenses¥1.5 (% Sales) 7.3％ 8.6％ 1.3% - ¥0.6 B. Surveillance lenses Net Sales ◆ As prolonged inven
Slide 38: Mobility & Healthcare Products, Others
③Mobility & Healthcare Products, Others DSC/VC, Drone, etc. VS. 2023 ¥0.7B. Forecast Healthcare （Millions of JPY） Actual 2023 2024 Inc./Dec. % ¥0.7B. ¥1.1 Net Sales 8,607 9,400 792 9.2% ¥0.4 Operating Income 1,492 1,100 (392) (26.3)％ Automotive lenses Net Sales (% Sales) 17.3％ 11.7％ (5.6)% - ¥8.0B.
Slide 39: Technology
Technology Optical Technology for High-Power Laser Transmission & processing technology development for laser ＜Technical Features＞ ◆ Optical design technology that produces Gaussian, Top-Hat, Dual (center/ring) beam. ◆ High quality beam performance suitable for high-precision laser applications with
Slide 40: Optical technology for star trackers and free space optical communication
Optical technology for star trackers Design technology for straylight shield and radiation resistance ＜Technical Features＞ ◆ Coating technology maintaining high optical performance even under radiation environment ◆ Stray light simulation technology to achieve an effective baffle design ◆ Lens desig
Slide 41: V. Reference Data
V. Reference Data
Slide 42: V-1. Financial Summary
Ⅴ-１. Financial Summary Assets Liabilities・Net Assets （Millions of JPY） （Millions of JPY） 100,000 100,000 87,062 87,062 75,556 75,556 80,000 80,000 14,226 32,640 12,685 2,102 60,000 29,948 60,000 2,295 14,844 40,000 11,128 40,000 70,732 14,640 60,574 12,998 1,671 20,000 20,000 1,230 20,250 23,264 0 0
Slide 43: V-2. Capital Investment, Depreciation, and R&D Expenses
Ⅴ-２. Capital Investment, Depreciation, and R&D Expenses Capital Investment・Depreciation R&D Expenses For Rationalization/Labor saving 3 （Millions of JPY） For New bussiness/R&D 1 10,000 12% For Increase For New model capacity 9 development 20 9.7% 10% For 2nd plant in 8,000 Vietnam 12 For 8.7% 8.6% M
Slide 44: V-3. Cash Flow
Ⅴ-３. Cash Flow （Millions of JPY） 12,000 22/12 23/12 10,027 Operating Activities CF 9,232 10,027 10,000 9,232 Investing Activities CF (3,865) (5,145) 8,000 Free CF 5,367 4,881 Financing Activities CF (2,044) (2,778) 6,000 5,367 Cash & Cash Equivalents at the 4,881 29,948 32,640 End of Period 4,000 2,
Slide 45: V-4. Cash Dividends Outlook & Key Performance Indicators
Ⅴ-４. Cash Dividends Outlook & Key Performance Indicators Cash Dividends Key Performance Indicators （JPY） （JPY） 300 56.3% 60% 800 20% 2023 Record-high 17.2% 250 dividend for 3 50% 16.1% 15.9% consecutive year 40.9% 16.5% 33.0% 600 15% 200 40% 32.9% 14.8% 12.0% 30.0% 14.8% 150 30% 160 Mar. 2020 5 400
Slide 46: V-5. Foreign exchange impact
V-5. Foreign exchange impact Actual 2023 Impact (Millions of JPY) 2022 2023 Net Sales Operating Income USD/JPY 131.63 140.68 2,160 (190) EUR/JPY 138.19 152.17 780 650 Others - - 230 180 Total - - 3,170 640 （Foreign exchange impact on previous year results） Forecast 2024 Exchange rate assumption Impa
Slide 47: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for FY2023 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