Slide 1: Summary of F.Y. 2020 Consolidated Financial Results
Summary of F.Y. 2020 Consolidated Financial Results (Jan.1 to Dec.31, 2020) OPTEX GROUP CO., LTD. February 12, 2021 （Tokyo Stock Exchange Market 1st Section:#6914） <Disclaimer> The forward-looking statements, including OPTEX CO., LTD.’s operating results, strategies, and business plans, contained in
Slide 2: Key Points of Financial Results of F.Y. 2020
Key Points of Financial Results of F.Y. 2020 ・Net sales were -7% year on year, reflecting sluggish growth due to restraints on economic activities amid the COVID-19 pandemic. ・Operating income was -27% year on year due to a decline in gross profit, despite cost-cutting initiatives and other measures
Slide 3: Summary of Consolidated Financial Results of F.Y. 2020
Summary of Consolidated Financial Results of F.Y. 2020 Operating Results F.Y.2019 F.Y.2020 Percent Change (Unit: million yen) （1-12）Results （1-12）Results Change Net sales 37,517 34,846 -2,671 -7.1% Operating income 2,856 2,098 -758 -26.5% （Operating income Ratio） （7.6%） （6.0%） Ordinary income 2,876
Slide 4: Quarterly performance - Consolidated Net Sales (Year-on-year)
Quarterly performance - Consolidated Net Sales (Year- on-year) 9,926 9,668 9,285 9,308 249 8,998 8,801 309 236 279 8,542 362 219 2,555 7,835 237 2,254 EMS/Other 2,305 2,408 2,181 2,325 195 Business 1,889 2,188 1,838 2,013 MVL Business 1,755 1,789 1,758 1,562 1,911 1,821 FA Business SS Business 4,989
Slide 5: Comparison of Financial Results of F.Y. 2020 between Segments
Comparison of Financial Results of F.Y. 2020 between Segments Operating F.Y. 2019 (1-12）Results F.Y. 2020（1-12）Results Results Operating income Operating (Unit: Percent income Percent Net sales （Operating Net sales million yen) income Ratio） Change （Operating Change income Ratio） SS 19,802 1,731 17,
Slide 6: Factors of change in Net Sales (Year-on-year)
Factors of change in Net Sales （Year- on-year） SS Business 37,517 -1,697 FA MVL Business Business EMS Other +193 -750 Impact of Business Business -91 Exchange -66 Rate -260 34,846 F.Y. 2019 Consolidated Net Sales F.Y. 2020 （1-12）Results -¥2,671 million （1-12）Results Copyright (C) 2021 OPTEX GROUP CO
Slide 7: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income （Year- on-year） Sales Decrease 2,856 -1,300 Impact of Increase Exchange in Rate Expenses +851 +80 2,098 COS% Up Impact of -257 Exchange Rate -132 Gross operating income Selling, general and administrative Expenses F.Y. 2019 Consolidated Operating F.Y. 2020 （1-12
Slide 8: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region F.Y. 2020 （1-12）Results Sales decreased due to sluggish sales of outdoor intrusion detectors for security companies and for Japan large-scale critical facilities. Sales fell due to postponements of projects for large-scale critical facilitie
Slide 9: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region F.Y. 2020 （1-12）Results Sales declined because investments related to stores, which is the main market, Japan continued to be curbed. Sales fell because sales and installation for major OEM customers were restricted AMERICAs in North A
Slide 10: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Region F.Y. 2020 （1-12）Results Sales decreased due to sluggish capital expenditures in the automobile-related Japan industries, although sales of image sensors were firm in the food industry. EMEA Sales rose, reflecting a sharp recovery in sales to O
Slide 11: Business by Segment - Machine Vision Lighting (MVL) Business
Business by Segment - Machine Vision Lighting (MVL) Business Region F.Y. 2020 （1-12）Results Sales fell because sales activities remained restricted in the second quarter and Japan beyond, despite an increase in inquiries related to 5G investment. AMERICAs Sales rose, reflecting steady sales to the m
Slide 12: Revisions to the F.Y. 2020 Dividend Projection
Revisions to the F.Y. 2020 Dividend Projection Year-end dividend（¥） Interim dividend（¥） Dividend payout ratio（%） 32.5 Acquisition of treasury shares 30 30 30 27.5 2018 2019 1.5 1.0 15 Amount billion yen billion yen 15 15 15 No. of 700,000 670,000 15 shares shares shares 54.1 77.7 49.3 28.2 28.6 17.5
Slide 13: We aim to become a corporate group full of Venture Spirit!
Group Corporate Philosophy We aim to become a corporate group full of Venture Spirit ! Mid-term Plans In fiscal year 2022, we aim to achieve an operating income margin of 10% or more as a consolidated Group, Continue to reduce fixed costs and improve earnings per employee, Strengthen consolidated sa
Slide 14: Aiming to achieve 10% annual growth in consolidated net sales
Aiming to achieve 10% annual growth in consolidated net sales and improve the operating income ratio over the next three years. 50,000 Net Sales 45,000 EMS/Other Business 40,000 New operating company 37,517 1,010 1,125 34,846 3,131 MVL Business 960 9,912 9,927 FA Business 9,181 6,500 SS Business 7,1
Slide 15: Measures for accomplishing the medium-term management plan
Measures for accomplishing the medium-term management plan (i) Create business synergies through M&A (ii) Strengthen sales capabilities in Europe (iii) Facilitate the shift of the business model from selling products to selling services Copyright (C) 2021 OPTEX GROUP CO., LTD. 15
Slide 16: (i) Create business synergies through M&A
(i) Create business synergies through M&A Name Sanritz Automation Co., Ltd. Location Machida City, Tokyo Date of March 13, 1971 establishment System solutions Representative Kazuya Suzuki, President Sales ¥3,700million(FY ended August 31, 2020) Operating Profit ¥300million(FY ended August 31, 2020)
Slide 17: (i) Create business synergies through M&A - new opportunities
(i) Create business synergies through M&A Promote sales of services (sales of systems) in social infrastructure projects, a business area in which Sanritz demonstrates its strength. (ii) Management of (iii) Management of (i)Traffic control parking facilities railway safety New business opportunitie
Slide 18: (ii) Strengthen sales capabilities in Europe - SS Business
(ii) Strengthen sales capabilities in Europe - SS Business (Security Sensors) Optex Co., Ltd. established a new company in the Netherlands Further promote the growth strategy of selling services instead of products in Europe. Name： Optex Security B.V. Location： The Hague, Netherlands Start of Operat
Slide 19: Features of visual verification solutions
Features of visual verification solutions (i) Detection of an intruder with a camera-equipped sensor. (iii) Request that police be dispatched Intruder! (ii) Transmission of video images POLICE In case of an Action taken intrusion immediately Security company (iv) Police officers rush to the site. (i
Slide 20: (ii) Strengthen sales capabilities in Europe - MVL Business
(ii) Strengthen sales capabilities in Europe - MVL Business CCS Inc. established a new company in the Netherlands. Supervise the Group’s companies operating in Europe and facilitate growth in the region. Name： CCS Europe Holding B.V. (CCSEH) Location： Hilversum, Netherlands Establishment： January 1,
Slide 21: Increase sales in Europe to 4.0 billion yen by 2025
(ii) Strengthen sales capabilities in Europe - MVL Business Strengthen collaboration between the group companies in Europe and accelerate the provision of total solutions. CCS Europe Holding(Netherlands) Control and supervision of operations in Europe CCS Europe(Belgium) EFFILUX(France and Germany)
Slide 22: (iii) Facilitate the shift of the business model - Automatic Door Sensors
(iii) Facilitate the shift of the business model - SS Business(Automatic Door Sensors) Optex Co., Ltd.’s shift from selling products to selling services Commencement of the operation of OMNICITY, which is the first sharing service in the industry utilizing automatic door sensors（Feb. 2021～） Informat
Slide 23: https://www.optexgroup.co.jp/en/
https://www.optexgroup.co.jp /en /
Slide 24: Company Overview
Company Overview Copyright (C) 2021 OPTEX GROUP CO., LTD. 24
Slide 25: 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 34,846 million JPY To see things what eyes cannot see, that is our business ! Operating Profit 2,098 milli
Slide 26: Trends in Consolidated Performance
Trends in Consolidated Performance 2019 2020 - U.S.-China trade tensions, - COVID-19 economic slowdown in China 50,000 - Deceleration in demand for smartphone- related capital investment 45,000 2016 - Acquired CCS Inc. 40,113 40,000 37,504 37,517 34,846 6,500 31,027 2008 (13%) - Lehman Brothers coll
Slide 27: 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
Slide 28: Company Overview _ Holding Company Structure
Company Overview _ Holding Company Structure Holding Company OPTEX GROUP CO., LTD （Tokyo Stock Exchange Market 1st Section：#6914） OPTEX CO.,LTD. OPTEX FA CO., LTD. CCS Inc. Sanritz Automation OPTEX MFG Co., Ltd. Three Ace Co., Ltd. O'PAL OPTEX CO.,LTD. Co., Ltd. Sales & Development Development, Sale
Slide 29: Company Overview _ Data
Company Overview _ Data Sales by Product Category Sales by Region EMS/ Asia/ Others Oceania 3% 13% MVL AMERICAs 25% SS 13% 34.8 Security Sensors 34.8 Japan billion yen 35% billion yen 44% (F.Y.2020) (F.Y.2020) SS FA Automatic EMEA 21% SS Door Sensors 30% Others 11% 5% EMEA : Europe, the Middle East,
Slide 30: Company Overview _ Global Market Share
Company Overview _ Global Market Share Global niche No.1 Security Automatic door Machine vision sensors sensors lighting 40% Intrusion detector 30% Automatic door 30% LED lighting for outdoor sensor for inspection Infrared sensor Sensor for large-scale critical facilities Push plate LED lighting sys
Slide 31: Business Domain _ Security sensors
Business Domain _ Security sensors Largest market share in the world for intrusion detectors for outdoor use Residential home・Commercial facilities Residence Office [Security company] Alarm Guard visit service signal Outdoor sensors Rush to the scene Police rush in Europe and the United States Impor
Slide 32: Business Domain _ Automatic door sensors
Business Domain _ Automatic door sensors Domestic market Share: Over 50% Jun. 2020 Automatic door sensors selected for the Overseas market Share: Over 20% New Global Niche Top Companies Selection 100 by the Ministry of Economy, Trade and Industry. In 1980, we applied the far-infrared ray, Over 60% s
Slide 33: 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
Slide 34: 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 Bearing raised characte
Slide 35: ESG's Efforts
ESG’s Efforts _ We have been making efforts to improve our corporate value by responding positively to ESG tasks. Environment Social Governance Products and services helping Relationships with local Corporate governance resolve environment issues communities Sensors for shutters that help reduce ene