Slide 1: FY2016 Financial Results
FY2016 Financial Results February 10, 2017 Tamron Co., Ltd. (Code: 7740)
Slide 2: Contents
Contents Ⅰ. FY2016 Financial Results Ⅲ. Financial Situation 1. FY2016 Summary 1. Financial Summary P.17 P.4 2. FY2016 Financial Results P.5 2. Capital Investment & Depreciation P.18 3. FY2016 Performance Variation Factors P.6 3. Research & Development Expenses P.19 4. FY2016 Results by Segment 4. Ca
Slide 3: Ⅰ. FY2016 Financial Results
Ⅰ．決算概要 Ⅰ. FY2016 Financial Results FY2016 Financial Results 3
Slide 4: Ⅰ-1. FY2016 Summary
Ⅰ-1. FY2016 Summary 【Business Environment】 Economic situation ⇒ Appreciation of JPY against both USD & EUR (-12JPY/USD & -14JPY/EUR) In 2nd Half, -16JPY/USD & -18JPY/EUR: more difficult economic environment Digital camera market ⇒ Showed two-digit decrease both in quantity & amount due to relate
Slide 5: Ⅰ-2. FY2016 Financial Results
Ⅰ-２. FY2016 Financial Results （millions of JPY） Actual Forecast Actual Inc / Dec Inc / Dec FY15 FY16 FY16 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 71,946 64,000 59,903 (12,042) 83.3% (4,096) 93.6% Operating 3,000 2,361 (2,193) 51.8% (638) 78.7% 4,554 Income (% Sales) 6.3% 4.7% 3.9% (2.4)% － (0.8)%
Slide 6: Ⅰ-3. FY2016 Performance Variation Factors
Ⅰ-3. FY2016 Performance Variation Factors （millions of JPY） Impact for ※ Factors of Factors Sales Decline in Sales FX impact vs. FY15 (5,550) (vs. FY15) Others (6,500) （millions of JPY） Total (12,050) 5,000 4,000 △1,400 3,000 4,554 △1,300 2,000 △2,050 850 860 △199 3,000 670 2,361 1,000 △263 0 Actual
Slide 7: Ⅰ-4. FY2016 Results by Segment: Photographic Products
Ⅰ-4. FY2016 Results by Segment 1) Photographic Products （millions of JPY） Actual Forecast Actual Inc / Dec FX Inc / Dec FY15 FY16 FY16 Impact vs. FY15 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 54,578 50,200 46,805 (7,772) 85.8% (4,200) (3,394) 93.2% Operating 4,800 4,034 (1,463) 73.4% (1,050) (765)
Slide 8: Ⅰ-4. FY2016 Results by Segment: Optical Components
Ⅰ-4. FY2016 Results by Segment 2) Optical Components （millions of JPY） Actual Forecast Actual Inc / Dec FX Inc / Dec FY15 FY16 FY16 impact vs. FY15 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 4,567 2,300 2,358 (2,208) 51.6% (250) 58 102.5% Operating 50 75 (153) 32.9% (50) 25 150.7% 228 Income (% Sales
Slide 9: Ⅰ-4. FY2016 Results by Segment: Commercial / Industrial-use Optics
Ⅰ-4. FY2016 Results by Segment 3) Commercial / Industrial-use Optics （millions of JPY） Actual Forecast Actual Inc / Dec FX Inc / Dec FY15 FY16 FY16 impact vs. FY15 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 12,800 11,500 10,739 (2,061) 83.9% (1,100) (760) 93.4% Operating 800 733 (678) 52.0% (300) (66
Slide 10: Ⅱ. FY2017 Financial Forecast
Ⅱ．2015年予想 Ⅱ. FY2017 Financial Forecast FY2016 Financial Results 10
Slide 11: Ⅱ-1. FY2017 Forecast
Ⅱ-１. FY2017 Forecast （millions of JPY） 1st H 2nd H 80,000 Net Sales Actual Forecast Inc / Dec FY16 FY17 (a) (b) (b)-(a) % 60,000 36,710 29,404 34,000 Net Sales 59,903 62,500 2,596 104.3% 40,000 Operating 2,361 3,200 838 135.5% 20,000 35,235 30,499 28,500 Income (% Sales) 3.9% 5.1% 1.2% － 0 FY15 FY16
Slide 12: Ⅱ-2. FY2017 Performance Variation Factors
Ⅱ-２. FY2017 Performance Variation Factors vs.FY2016 （millions of JPY） Impact for ※ Factors of Factors Sales Increase in Sales FX impact vs. FY16 (1,850) (vs. FY16) Others 4,450 Total 2,600 （millions of JPY） 4,000 3,000 539 2,000 △650 1,400 3,200 △450 2,361 1,000 0 Actual FX rate R&D Increase Others
Slide 13: Ⅱ-3. FY2017 Forecast by Segment: Photographic Products
Ⅱ -3. FY2017 Forecast by Segment 1) Photographic Products （millions of JPY） Actual Forecast Inc / Dec FY16 FY17 (a) (b) (b)-(a) % Net Sales 46,805 47,000 194 100.4% Operating 4,034 5,100 1,065 126.4% Income (% Sales) 8.6% 10.9％ 2.3% － OEM model sales decreases, but aiming to increase in own-brande
Slide 14: Ⅱ-3. FY2017 Forecast by Segment: Optical Components
Ⅱ -3. FY2017 Forecast by Segment 2) Optical Components （millions of JPY） Actual Forecast Inc / Dec FY16 FY17 (a) (b) (b)-(a) % Net Sales 2,358 3,600 1,241 152.7% Operating 75 200 124 265.4% Income (% Sales) 3.2% 5.6% 2.4% － Expecting DSC and VC sales to decrease, but aiming greater increase in sal
Slide 15: Ⅱ-3. FY2017 Forecast by Segment: Commercial / Industrial-use Optics
Ⅱ -3. FY2017 Forecast by Segment 3) Commercial / Industrial-use Optics （millions of JPY） Actual Forecast Inc / Dec FY16 FY17 (a) (b) (b)-(a) % Net Sales 10,739 11,900 1,160 110.8% Operating 733 600 (133) 81.8% Income (% Sales) 6.8% 5.0% (1.8)% － Operating income decreases due to increase in invest
Slide 16: Ⅲ. Financial Situation
Ⅲ．財務状況 Ⅲ. Financial Situation FY2016 Financial Results 16
Slide 17: Ⅲ-1. Financial Summary
Ⅲ-１. Financial Summary （millions of JPY） Inventories FY 15 FY 16 Change Inventories Turnover （Month） (a) (b) (b)-(a) 15,000 2.5 2.1 2.1 Cash and Deposits 14,192 16,030 1,837 12,000 2.0 1.5 Notes and Accounts 15,804 13,419 (2,385) 9,000 1.5 Receivable 6,000 12,875 1.0 Inventories 12,875 10,100 (2,774
Slide 18: Ⅲ-2. Capital Investment & Depreciation
Ⅲ-２. Capital Investment & Depreciation （millions of JPY） 8,000 6,000 Depreciation Depreciation 3,654 3,812 Depreciation 3,750 Depreciation 4,000 3,365 Capital Investment Capital Investment Capital Investment 2,429 2,478 2,484 Capital Investment 3,250 2,000 Net Income Net Income Net Income 3,846 4,04
Slide 19: Ⅲ-3. Research & Development Expenses
Ⅲ-３. Research & Development Expenses （millions of JPY） （％） 5,000 10.0 4,450 4,052 4,002 4,000 3,699 7.1 8.0 6.7 5.6 3,000 5.0 6.0 2,000 4.0 1,000 2.0 0 0.0 FY14(A) FY15(A) FY16(A) FY17(F) R&D 3,699 4,052 4,002 4,450 Ratio 5.0 5.6 6.7 7.1 * R&D Cost/Net Sales Ratio * (A): Actual (F): Forecast FY2016
Slide 20: Ⅲ-4. Cash Flow Situation
Ⅲ-4. Cash Flow Situation （millions of JPY） FY15 FY16 10,000 8,000 Operating CF 6,214 6,537 Investing CF 6,000 Free CF 3,662 3,997 4,000 Financing CF 2,000 0 (2,000) (1,524) (4,000) (2,552) (2,540) (6,000) (5,219) FY15 FY16 Cash Flow from Operating Activities 6,214 6,537 Cash Flow from Investing Acti
Slide 21: Ⅲ-5. Cash Dividends Outlook
Ⅲ-5. Cash Dividends Outlook （JPY） FY13 FY14 FY15 FY16 FY17(F) Interim 20.00 20.00 25.00 25.00 25.00 Year-End 30.00 30.00 35.00 30.00 25.00 Annual 50.00 50.00 60.00 55.00 50.00 Dividends Payout Ratio 42.9% 35.7% 39.0% 96.2% 57.9% (Consolidated) • Dividend Payout Ratio Target: 35% (Consolidated) Divid
Slide 22: Ⅲ-6. Reference Data: Key Performance Index
Ⅲ-6. Reference Data １） Key Performance Index （JPY） （％） 200.00 9.2 10.0 8.0 8.0 150.00 7.8 7.6 5.2 6.0 4.5 100.00 153.98 4.0 140.14 4.7 50.00 3.1 86.42 2.0 57.19 0.00 0.0 FY14(A) FY15(A) FY16(A) FY17(F) EPS 140.14 153.98 57.19 86.42 ROE 7.8 8.0 3.1 4.7 ROA 9.2 7.6 4.5 5.2 ROE＝Net Income/ Net Assets
Slide 23: Ⅲ-6. Reference Data: Impact of Foreign Exchange Rate Fluctuations
Ⅲ-6. Reference Data ２） Impact of Foreign Exchange Rate Fluctuations Actual FY2016 (JPY) （million of JPY） Exchange Rate Impact Actual Actual Operating Net Sales FY15 FY16 Income USD 121.11 108.79 (3,400) (200) Euro 134.35 120.31 (1,350) (1,150) Others - - (800) (50) Total - - (5,550) (1,400) (Impact
Slide 24: Ⅳ. Mid-Term Strategy
Ⅳ．中期戦略 Ⅳ. Mid-Term Strategy Shiro Ajisaka, President & CEO FY2016 Financial Results 24
Slide 25: Ⅳ-1. Agendas for Transformation
Ⅳ-1. Agendas for Transformation Agenda Direction Action Plan ・Enhance Marketing Functions ・Enhance proposal-based sales activities Reinforce Sales & ・Create pull-demands and increase repeat ・Proposal-Based Sales Marketing Activities customer rate ・Reinforce functions of Product Planning Customer ・In
Slide 26: Ⅳ-2. Mid-Term Management Goals
Ⅳ- 2. Mid-Term Management Goals Improve Profitability through Well-Balanced Business Portfolio （Reduce Ratio of Digital Camera Lens: 80% of Total Sales in FY2016 ⇒ 60% in FY2019) Mid-Term Management Goal toward FY2019 Net Sales ¥76.0 billion Operating ¥7.0 billion Income (% Sales) 9.2％ ＲＯＥ 10％ or mo
Slide 27: Ⅳ-3. Business Strategy
Ⅳ-3. Business Strategy Sales Target Business Strategy Improve profitability as core business ⇒ Enhance business foundation ¥53.0 Photographic billion ・Timely launch of new products with innovative & exciting features. Products (69.7％) ・Leverage sales activities in emerging markets. FY19 sales: *Comp
Slide 28: Ⅳ-3. Business Strategy
Ⅳ-3. Business Strategy Sales Target Business Strategy Reallocation of R&D resources ⇒ Explore new business fields ¥4.0 Optical billion ・Enter into drone market→ FY19 sales:3.3 billion Components (5.3％) (R&D tie-up and partnership with a market leader) *Composition Ratio ・Increase efficiency of inves
Slide 29: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the “FY2016 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 the company’s presentation are