Slide 1: 2nd Quarter FY2016 Financial Results
2nd Quarter FY2016 Financial Results August 5, 2016 Tamron Co., Ltd. (Code: 7740)
Slide 2: Contents
Contents Ⅰ. 2nd Quarter FY2016 Financial Results Ⅲ. Financial Situation 1. 1st Half FY2016 Summary 1. Financial Summary P.18 P.4 2. 1st Half FY2016 Financial Results P.5 2. Capital Investment & Depreciation P.19 3. 1st Half FY2016 Performance Variation Factors P.6 3. Research & Development Expenses
Slide 3: Ⅰ. 2nd Quarter FY2016 Financial Results
Ⅰ．決算概要 Ⅰ． 2nd Quarter FY2016 Financial Results 2nd Quarter Financial 3 Results FY2016
Slide 4: 1st Half FY2016 Summary
Ⅰ-1. 1st Half FY2016 Summary 【Business Environment】 Economic situation ⇒ Enterprise performances became worse due to appreciation of JPY against both USD and Euro, and economic slowdown in emerging countries Digital camera market ⇒ Drastically shrunk especially since 2 nd Quarter with market sta
Slide 5: 1st Half FY2016 Financial Results
Ⅰ-２. 1st Half FY2016 Financial Results （millions of JPY） Forecast * Inc / Dec Inc / Dec Actual Actual 1st H FY16 1st H FY15 1st H FY16 (16/4/28) (a) (c) (c)-(a) % (c)-(b) % (b) Net Sales 35,235 32,700 30,499 (4,736) 86.6% (2,200) 93.3% Operating 2,764 1,400 1,377 (1,387) 49.8% (22) 98.4% Income (% S
Slide 6: 1st Half FY2016 Performance Variation Factors
Ⅰ-3. 1st Half FY2016 Performance Variation Factors （millions of JPY） 3000 2500 △600 2000 △920 1500 2,764 △90 117 △110 380 △137 1000 720 △770 1,377 1,400 500 0 Actual FX rate Decrease Decrease Others Cost Actual Others Reduction of Decrease FX rate Forecast 1st H FY15 Impact of Sales Profit in Down 1
Slide 7: 1st Half FY2016 Results by Segment: Photographic Products
Ⅰ-4. 1st Half FY2016 Results by Segment 1) Photographic Products （millions of JPY） Actual Forecast Actual Inc / Dec FX impact Inc / Dec 1st H 1st H FY16 1st H FY16 vs. 1st H FY15 (16/4/28) FY15 (c) (c)-(a) % (c)-(b) % (a) (b) Net Sales 26,666 25,400 24,069 (2,597) 90.3% (1,350) (1,330) 94.8% Operati
Slide 8: 1st Half FY2016 Results by Segment: Optical Components
Ⅰ-4. 1st Half FY2016 Results by Segment 2) Optical Components （millions of JPY） Actual Forecast Actual Inc / Dec FX Inc / Dec 1st H FY16 impact 1st H FY15 1st H FY16 vs. 1st H (16/4/28) (a) (c) (c)-(a) % FY15 (c)-(b) % (b) Net Sales 2,249 1,400 1,009 (1,239) 44.9% (50) (390) 72.1% Operating 9 (101)
Slide 9: 1st Half FY2016 Results by Segment: Commercial/Industrial-use Optics
Ⅰ-4. 1st Half FY2016 Results by Segment 3) Commercial / Industrial-use Optics （millions of JPY） Actual Forecast Actual Inc / Dec FX Inc / Dec 1st H FY16 impact 1st H FY15 1st H FY16 vs. 1st H (16/4/28) (a) (c) (c)-(a) % FY15 (c)-(b) % (b) Net Sales 6,319 5,900 5,419 (899) 85.8% (300) (480) 91.9% Ope
Slide 10: Ⅱ. FY2016 Financial Forecast
Ⅱ．2015年予想 Ⅱ．FY2016 Financial Forecast 2nd Quarter Financial 10 Results FY2016
Slide 11: FY2016 Forecast
Ⅱ-１. FY2016 Forecast （millions of JPY） Previous Revised Inc / Dec Inc / Dec Actual Forecast Forecast FY15 FY16 FY16 (a) (16/4/28) (c)-(a) % (c)-(b) % (c) (b) Net Sales 71,946 72,000 64,000 (7,946) 89.0% (8,000) 88.9% Operating 3,000 (1,554) 65.9% (2,100) 58.8% 4,554 5,100 Income (% Sales) 6.3% 7.1%
Slide 12: FY2016 Performance Variation Factors
Ⅱ-２. FY2016 Performance Variation Factors vs.FY2015 （millions of JPY） 5000 4000 △1,700 3000 1,096 4,554 △1,200 2000 250 3,000 1000 0 Actual FX rate Decrease Reduction of Cost Forecast FY15 Impact of Sales Expenses Down FY16 2nd Quarter Financial 12 Results FY2016
Slide 13: 2nd Half FY2016 Forecast
Ⅱ-3. 2nd Half FY2016 Forecast （millions of JPY） Previous Revised Actual Inc / Dec Inc / Dec Forecast Forecast 2nd H FY15 2nd H FY16 2nd H FY16 (a) (c)-(a) % (c)-(b) % (b) (c) Net Sales 36,710 39,300 33,500 (3,209) 91.3% (5,799) 85.2% Operating 1,622 (167) 90.6% (2,077) 43.9% 1,790 3,700 Income (% Sa
Slide 14: FY2016 Forecast by Segment: Photographic Products
Ⅱ -4. FY2016 Forecast by Segment 1) Photographic Products （millions of JPY） Previous Revised Inc / Dec Inc / Dec Actual Forecast Forecast FY15 FY16 FY16 (a) (c)-(a) % (c)-(b) % (b) (c) Net Sales 54,578 56,000 50,200 (4,378) 92.0% (5,800) 89.6% Operating 4,800 (698) 87.3% (1,500) 76.2% 5,498 6,300 In
Slide 15: FY2016 Forecast by Segment: Optical Components
Ⅱ -4. FY2016 Forecast by Segment 2) Optical Components （millions of JPY） Previous Revised Actual Inc / Dec Inc / Dec Forecast Forecast FY15 FY16 FY16 (a) (c)-(a) % (c)-(b) % (b) (c) Net Sales 4,567 2,800 2,300 (2,267) 50.4% (500) 82.1% Operating 50 (178) 21.9% 0 100.0% 228 50 Income (% Sales) 5.0% 1
Slide 16: FY2016 Forecast by Segment: Commercial/Industrial-use Optics
Ⅱ -4. FY2016 Forecast by Segment 3) Commercial / Industrial-use Optics （millions of JPY） Previous Revised Actual Inc / Dec Inc / Dec Forecast Forecast FY15 FY16 FY16 (a) (c)-(a) % (c)-(b) % (b) (c) Net Sales 12,800 13,200 11,500 (1,301) 89.8% (1,700) 87.1% Operating 800 (611) 56.7% (650) 55.2% 1,411
Slide 17: Ⅲ. Financial Situation
Ⅲ．財務状況 Ⅲ．Financial Situation 2nd Quarter Financial 17 Results FY2016
Slide 18: Financial Summary
Ⅲ-１. Financial Summary （millions of JPY） Inventories Jun30, Dec 31, Jun 30, Change Inventories Turnover 2015 2015 2016 （Month） (c)-(b) 15,000 2.5 (a) (b) (c) 1.9 2.1 2.1 12,000 2.0 Cash and deposits 17,875 14,192 15,083 891 9,000 1.5 Notes and accounts 13,962 15,804 12,667 (3,137) receivable 6,000 1
Slide 19: Capital Investment & Depreciation
Ⅲ-２. Capital Investment & Depreciation （millions of JPY） 8,000 Capital Investment 6,130 6,000 Depreciation Depreciation 3,812 3,654 Depreciation 3,440 Depreciation 4,000 3,400 Capital Investment Capital Investment 2,429 2,478 Capital Investment 2,000 Net Income Net Income 3,000 Net Income 3,846 3,19
Slide 20: Research & Development Expenses
Ⅲ-３. Research & Development Expenses （millions of JPY） （％） 5,000 10.0 4,052 4,200 4,000 3,699 8.0 6.6 3,217 5.6 3,000 4.7 5.0 6.0 2,000 4.0 1,000 2.0 0 0.0 FY13(A) FY14(A) FY15(A) FY16(F) R&D 3,217 3,699 4,052 4,200 Ratio 4.7 5.0 5.6 6.6 * R&D cost/Net sales ratio * (A): Actual (F): Forecast 2nd Qua
Slide 21: Cash Flow Situation
Ⅲ-4. Cash Flow Situation （millions of JPY） 1st H FY15 FY15 1st H FY16 10,000 8,000 6,807 Operating CF 5,552 6,214 Investing CF 6,000 4,662 Free CF 3,662 3,046 Financing CF 4,000 2,000 0 (2,000) (595) (1,255) (1,615) (4,000) (2,552) (6,000) (4,051) (5,219) 1st H FY15 FY15 1st H FY16 Cash flow from op
Slide 22: Cash Dividends Outlook
Ⅲ-5. Cash Dividends Outlook Planning to maintain ordinary dividend (2015 amount includes ¥5 commemorative dividend) （JPY） FY12 FY13 FY14 FY15 FY16(F) Interim 20.00 20.00 20.00 25.00 25.00 Year-end 30.00 30.00 30.00 35.00 30.00 Annual 50.00 50.00 50.00 60.00 55.00 Dividends Payout Ratio 35.2% 42.9% 3
Slide 23: Reference Data: Key Performance Index
Ⅲ-6. Reference Data １） Key Performance Index （JPY） （％） 200.00 9.2 10.0 8.5 8.0 8.0 150.00 7.8 7.6 7.3 4.8 6.0 100.00 153.98 4.0 140.14 50.00 116.48 3.8 68.67 2.0 0.00 0.0 FY13(A) FY14(A) FY15(A) FY16(F) EPS 116.48 140.14 153.98 68.67 ROE 7.3 7.8 8.0 3.8 ROA 8.5 9.2 7.6 4.8 ROE＝Net Income/Net assets
Slide 24: Reference Data: Impact of Foreign Exchange Rate Fluctuations
Ⅲ-6. Reference Data ２） Impact of Foreign Exchange Rate Fluctuations Actual 1st Half FY2015 (JPY) （million of JPY） Exchange Rate Impact Actual Actual Operating Net Sales 1st H FY15 1st H FY16 Income USD 120.31 111.72 (900) (150) Euro 134.14 124.56 (500) (400) Others - - (300) (50) Total - - (1,700) (
Slide 25: Ⅳ. Mid-Term Strategy
Ⅳ．中期戦略 Ⅳ．Mid-Term Strategy Shiro Ajisaka, President & CEO 2nd Quarter Financial 25 Results FY2016
Slide 26: Agendas for Transformation
Ⅳ-1. Agendas for Transformation Agenda Direction Action plan Sales & ・Enhance proposal-based sales activities ・Enhance Marketing Functions ・Create pull-demands and increase repeat Marketing ・Proposal-based Sales customer rate Customer ・Enhance functions of product planning div. ・Creative Product Pla
Slide 27: Mid-Term Management Goals
Ⅳ- 2. Mid-Term Management Goals Mid-Term Management Goals Net Sales ¥100.0 billion Management Vision Mid-Term Management Goals of FY2018 Net Sales ¥92.0 billion Operating ¥8.6 billion income Business Actions for (% Sales) 9.3％ Strategy Transformation ＲＯＥ 10％ or more Assumed exchange rate: US$1=120JP
Slide 28: Strategy towards FY2018
Ⅳ-3. Strategy towards FY2018 Sales Target Business Strategy Improve profitability as core business ⇒ Enhance business foundation ¥66.5 ・Unique features and timely launches of new products with strengthening design and Photographic billion development organization Products (72.3％) *Composition Ratio
Slide 29: Strategy towards FY2018
Ⅳ-3. Strategy towards FY2018 Sales Target Business Strategy Restrain investment to shrinking market ⇒ Explore new business fields ¥3.4 ・Restrain new investment and review R&D resources Optical billion ・Entry into new business fields (Drone market etc.) with leveraging Components (3.7％) *Composition
Slide 30: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the “FY2015 Financial Results” 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 our presentation are based on t