Slide 1: Consolidated Annual F.Y.2015 Presentation
Consolidated Annual F.Y.2015 Presentation OPTEX.CO., LTD. Feb. 15th , 2016
Slide 2: Contents
Contents １．F.Y. 2015 Results ２．F.Y. 2016 Plan ３．Medium-Term Action Plan and Growth Strategy Copyright (C) 2016 OPTEX CO., LTD. 2
Slide 3: About OPTEX
About OPTEX OPTEX is developing market and product areas that will enable it to become the No. 1 world leader in sensing technology applications. The hidden champion company. ✔ Crime ✔ Driving ✔ Water quality Security prevention assistance measurement Sensing Technology ✔ Lighting ✔ Manufact
Slide 4: Introduction: Change in regional segment approach
Introduction: Change in regional segment approach We have revised our regional segments in conjunction with our pursuit of a tetrapolar global production system In the past From F.Y. 2016 Japan Japan Europe EMEA Europe + Middle East, South Africa North America AMERICAs North America + Latin America
Slide 5: F.Y. 2015 Results
１．F.Y. 2015 Results Copyright (C) 2016 OPTEX CO., LTD. 5
Slide 6: Summary of Financial Results for the F.Y. Ended December 31, 2015
１．Summary of Financial Results for the F.Y. Ended December 31, 2015 Compared with prior year • Achieved record net sales. While net sales rose +8.2% over prior year, in real terms the growth rate was 4.1% after subtracting the effect of exchange rates • Profits (operating income, ordinary income and
Slide 7: Summary of Annual F.Y.2015
１．Summary of Annual F.Y.2015 USD 121 EUR 134 GBP 185 (Unit: million yen) Copyright (C) 2016 OPTEX CO., LTD. 7
Slide 8: Quarterly performance - Consolidated Net Sales
１．Quarterly performance - Consolidated Net Sales (Unit: million yen) Compared with prior year ・Security Sensor segment +9.2% ・Automatic Door Sensor segment +3.3% ・Factory Automation Business +9.0% Increase compared with 23,582 25,678 27,793 prior year for 3 main business segments Copyright (C) 2016
Slide 9: Quarterly performance - Consolidated Profit
１．Quarterly performance - Consolidated Profit (Unit: million yen) Consolidated net sales Improved steadily Copyright (C) 2016 OPTEX CO., LTD. 9
Slide 10: Factors of change in Operating Income
１．Factors of change in Operating Income (Unit: million yen) Impact of Exchange Rate Factor4 Factor5 Factor6 +225 Factor7 Impact of Exchange Rate -361 Factor3 Personnel cost Decrease Factor2 ＋39 R&D Expense COS% Down Factor1 +231 Expense Decrease Increase ＋14 -110 2,558 Sales Increase 3,161 +565 Gros
Slide 11: Free Cash Flows
１．Free Cash Flows (Unit: million yen) ■ Cash Flows from Operating Activities ■ Cash Flows from Investing Activities ■ Cash Flows from Financing Activities Cash and Cash Equivalents (Unit: million yen) 922 808 28 1,921 269 851 Copyright (C) 2016 OPTEX CO., LTD. 11
Slide 12: F.Y. 2016 Plan
２．F.Y. 2016 Plan Copyright (C) 2016 OPTEX CO., LTD. 12
Slide 13: F.Y. 2016 Earnings Forecast
２．F.Y. 2016 Earnings Forecast Our target is consolidated net sales of 31,000 million yen and consolidated ordinary income of 4,100 million yen (highest past earnings) USD 120 EUR 130 (Unit: million yen) GBP 170 USD 121 EUR 134 GBP 185 USD 117 EUR 161 GBP 235 USD 94 EUR 130 GBP 161 Copyright (C) 2016
Slide 14: Review of shortfall from Plan and countermeasures
２．Review of shortfall from Plan and countermeasures Improve planning accuracy, increase Train management human resources persistence and awareness of plan achievement ・Promote proposals from Regional Management HQs that Develop new applications meet local needs ・Energize discussion of ideas and
Slide 15: F.Y. 2016 Activities: By Segment
２．F.Y. 2016 Activities: By Segment １．Security Sensor segment ２．Automatic Door Sensor segment ３．Factory Automation Business Copyright (C) 2016 OPTEX CO., LTD. 15
Slide 16: F.Y. 2016 Activities: By Segment
２．F.Y. 2016 Activities: By Segment １．Security Sensor segment ２．Automatic Door Sensor segment ３．Factory Automation Business Copyright (C) 2016 OPTEX CO., LTD. 16
Slide 17: Security Sensor segment
２-１． Security Sensor segment F.Y. 2015 results F.Y. 2016 activities Japan: Expanded the adoption of outdoor LED lighting with sensors EMEA: Sales of the outdoor detectors remained robust Japan: Further expand disaster prevention lighting applications AMERICAs: Perimeter protection systems for larg
Slide 18: Security Sensor segment: Expand in outdoor and large-scale critical facilities
２-１．Security Sensor segment: Expand in the outdoor and large-scale critical facilities area Focus markets and trends Critical facilities Accelerating pace of infrastructure Increased demand for development in newly-emerging economies security or large-scale (High-end) Increase in destructive act
Slide 19: Security Sensor segment: Trends and Initiatives Dealing With Terrorism
2-1. Security Sensor segment: large-scale critical facilities Trends In and Initiatives Dealing With Terrorism Number of fatalities by type of target 2013-2014 Data centers Perimeter protection (Units: Individuals) sensors for large-scale critical facilities: Major increase ・North America: Religiou
Slide 20: F.Y. 2016 Activities: By Segment
２．F.Y. 2016 Activities: By Segment １．Security Sensor segment ２．Automatic Door Sensor segment ３．Factory Automation Business Copyright (C) 2016 OPTEX CO., LTD. 20
Slide 21: Automatic Door Sensor segment
２-２．Automatic Door Sensor segment F.Y. 2015 results F.Y. 2016 activities Japan: Fell below prior year because of a sharp jump in materials prices and construction period delays resulting from manpower shortages EMEA & AMERICAs： Japan: Enhance shutter sensor lineup OEM sales to leading automatic do
Slide 22: Automatic Door Sensor segment: New Automatic Door Functions
2-2. Automatic Door Sensor segment : New Automatic Door Functions A camera is used to add value, moving from doors that simply open and close The challenges of evolving beyond traditional door business. We have positioned the opening of doors as a value- added feature by using information, images, v
Slide 23: Automatic Door Sensor segment: Expansion of Shutter Sensors
２-２． Automatic Door Sensor segment : Expansion of Shutter Sensors Stronger line-up of shutter sensors for plants and warehouses for foods, machines, distribution, and others, for in-store climate control and insect/smoke proofing, and for homes From providing "high-speed sheet shutter sensors" to "s
Slide 24: F.Y. 2016 Activities: By Segment
２．F.Y. 2016 Activities: By Segment １．Security Sensor segment ２．Automatic Door Sensor segment ３．Factory Automation Business Copyright (C) 2016 OPTEX CO., LTD. 24
Slide 25: Factory Automation Business
２-３． Factory Automation Business F.Y. 2015 results F.Y. 2016 activities Japan: LED lighting for the automobile, electric machinery and electronic components industries increased steadily Japan: Focus efforts on expansion of image sensors and EMEA: General-purpose sensor sales slipped slightly as E
Slide 26: Factory Automation Business: Focus on expanding image sensors/LED lighting
２-３． Factory Automation Business: Focus on expanding image sensors/LED lighting Print inspection using cameras LED lighting Printing defects of “best-before date” and “use-by Improve inspection process accuracy and stability date” account for about 1/5 of all mishaps that as a light source for i
Slide 27: Factory Automation Business: Strengthening the Chinese Market
２-３． Factory Automation Business: Strengthening the Chinese Market ・Developing new markets with Chinese subsidiaries and setting plants in China Capturing the In China, we will seek to achieve a production lines of Japanese-owned companies market of 800 million yen in 2016 ・Winning customers by ente
Slide 28: Effect of exchange rates
Effect of exchange rates Assumed exchange rate （Unit: yen） 2015 Result 2016 Plan JPY／USD 121 120 JPY／EUR 134 130 JPY／GBP 185 170 Impact on our full-year performance by a-yen appreciation (Unit: million yen) 2015 Result 2016 Net Sales Operating Income Net Sales Operating Income USD ＋46 －14 －55 +1
Slide 29: Dividends, Dividend Payout Ratio and ROE
Dividends, Dividend Payout Ratio and ROE Dividends and dividend payout ratio ROE/Shareholders’ equity ratio (Unit: yen) (Unit: %) (Unit: %) Set an ROE objective of at least 10% Note: Implement a 5 yen interim period commemorative dividend for the 35th anniversary of the Company’s founding in 2014. C
Slide 30: Medium-Term Action Plan and Growth Strategy
3．Medium-Term Action Plan and Growth Strategy Copyright (C) 2016 OPTEX CO., LTD. 30
Slide 31: Medium-Term Action Plan: Achieve Consolidated Sales of ¥50 Billion in 2019
3. Medium-Term Action Plan: Achieve Consolidated Sales of ¥50 Million in 2019 Creating “The NEW” - Advancing Rapidly and Boldly Into the Future! - Sharing of human resources, Strengthening productivity, and information sources our organization Expansion of Growth strategy existing businesses ・Visual
Slide 32: Growth Strategy: Focus Market
３．Growth Strategy: Focus Market 1. Visual Verification ✔ Security business 2. Commercialization of IoS business ✔ Simple water quality measurement systems Copyright (C) 2016 OPTEX CO., LTD. 32
Slide 33: Visual Verification for Security Applications
3-1. Visual Verification for Security Applications Visual Verification is on-site response upon visual confirmation of intruders Background ・Worldwide expansion of surveillance cameras ・Significant advantages of sensors + camera verification Specific activities ・Business tie-ups between camera manuf
Slide 34: Visual Verification: Trends in Surveillance Cameras
3-1. Visual Verification for Security Applications: Trends in Surveillance Cameras (Units: 1000 units) Results of survey of Surveillance camera demand surveillance camera world market Upward trend 15% annual growth rate Source: external research organization Copyright (C) 2016 OPTEX CO., LTD. 34
Slide 35: Visual Verification for Security Applications
3-1. Visual Verification for Security Applications surveillance cameras Advantages Disadvantages ＋ Support verification of remote areas － Constant monitoring ＋ Can distinguish between required good guys and bad guys ＋ Can record images for use as evidence － Can only respond after the fact Add to sen
Slide 36: Growth Strategy: Focus Market
３．Growth Strategy: Focus Market 1. Visual Verification ✔ Security business 2. Commercialization of IoS business ✔ Simple water quality measurement systems Copyright (C) 2016 OPTEX CO., LTD. 36
Slide 37: IoS: Internet of Sensing Solutions
3-2. IoS: Internet of Sensing Solutions Adding new value in providing solutions by connecting sensors to networks OPTEX IoS flow （Internet of Sensing Solution) 3. Instructing behavior according to results 1. Extraction of reliable information sources from voluminous data by selecting with sensors Sm
Slide 38: Simple Water Quality Measurement System
3-2. Simple Water Quality Measurement System An industry first: A sensor manufacturer providing an end-to-end service extending from water quality readings to cloud data management. Anyone can take on-site water quality measurements. Measurement data and trends are managed in the cloud. Measurement
Slide 39: Simple Water Quality Measurement System
3-2. Simple Water Quality Measurement System In the past With Measurement Visual Digital Analysis Lab On site Recording Analog input One button (Input to paper or PC) （Not necessary Bluetooth) Batch control of Control Controlled separately multiple sites （Cloud） 39
Slide 40: Simple Water Quality Measurement System: Consumables Business
3-2. Simple Water Quality Measurement System: Consumables Business Reagents ・A reagent that reacts with the material being analyzed is placed in a test tube and the concentration of the material being characterized determines the degree of color change ・Measures 30 items focusing on parameters that
Slide 41: Simple Water Quality Measurement System: Examples of Applications
3-2. Simple Water Quality Measurement System: Examples of Applications Preventing water contamination and contributing to a safer water environment in China Waste processing plant: detection of School education: A Japanese heavy metals from metal plating factories, etc. environmental training progra
Slide 42: Environmental Business: Technique of sales promotion
３-２．Environmental Business: Technique of sales promotion In China, we are building a sales network with one representative in each province Protecting water safety and accelerating environmental solutions through tie-ups with industry groups, schools, and companies Japan-China Evaluations an
Slide 43: Environmental Business: Aiming at further business development
３-２． Environmental Business: Aiming at further business development 2019: A goal of ¥1,000 million yen in sales Expansion of WATER it Expansion of our business areas business fields 中国 China Studying deployment to Studying development of other newly emerging Simple Water Quality air and soil measure
Slide 44: Topics
３．Topics Production outsourced to Japanese China plant Production innovation manufacturers activity ODIS80 Strengthen the production system in Hanoi, Actions to improve the manufacturing Vietnam with the goal of establishing global organization so it bests overseas competitors supply (Operation
Slide 45: Concept for Growth by 2019
3. Concept for Growth by 2019 We will transform from a business model in which business is over when the product is sold to one in which we have continuous income We will make this happen as we move toward 2019 2016 2019 2016年 2019年 31,000 50,000 310億円 500億円 million yen million yen ■Conventional sen
Slide 46: Thank You.
Thank You.
Slide 47: www.optex.co.jp
www.optex.co.jp
Slide 48: Reference: 2015 Top Security 50
２-１．Reference: 2015 Top Security 50 Source：a&s INTERNATIONAL/Nov. 2015 15 Ranking 14 Ranking Company Headquarters Product Group 2014 (in US$Million) 1 1 Honeywell Security US Multiple 2,800.0 2 3 Hikvision Digital Technology China Video Surveillance 2,528.9 3 2 Bosch Security Systems Germany Multipl