Slide 1: 2nd Quarter FY2022 Financial Results
2nd Quarter FY2022 Financial Results August 8, 2022 Tamron Co., Ltd. (Code: 7740) Tamron Co., Ltd.
Slide 2: Contents
Contents I. FY2022 Summary III. FY2022 Financial Forecast 1. 1st Half Summary 1. FY2022 Financial Forecast 2. FY2022 Forecast 2. FY2022 Forecast by Segment 3. Medium-term management plan “Vision 23” ①Photographic Products and its Progress ②Surveillance & FA Lenses ③Mobility & Healthcare Products, Ot
Slide 3: I. FY2022 Summary
I. FY 2022 Summary Copyright © Tamron Co., Ltd. All rights reserved. 3
Slide 4: I-1. 1st Half Summary
I-1. 1st Half Summary Business Environment ・Affected by the epidemic of the omicron variant of COVID-19 ⇒At first of 1H: State of emergency in Japan/ Continued restrictions in each country After the Middle of 1H: Lockdown in China ・Affected by rise of material prices, tight logistics supply and dema
Slide 5: I-2. FY2022 Forecast
Ⅰ-２. FY2022 Forecast Business Environment ・Uncertainties due to the spread of COVID-19 is expected to continue. ⇒After-effect of lockdown and zero-COVID measures in China ・Long-term resource high, material cost rising, and semiconductor shortages, a continuous depreciation of JPY, and growing concer
Slide 6: I-3. Medium-Term Management Plan "Vision 23" and its Progress
Ⅰ-３. Medium-Term Management Plan “Vision 23” and its Progress 2nd Year Medium-Term Management Plan “Vision 23” New accounting standards for revenue Revised recognition has applied from FY2022. (Announced in Feb., 2021) 1st Year Impact on Original Sales Forecast: 1 billion Upward Actual Target Actual
Slide 7: II. 1st Half Financial Results
II. 1st Half Financial Results Copyright © Tamron Co., Ltd. All rights reserved. 7
Slide 8: II-1. 1st Half Financial Results
II-1. 1st Half Financial Results Operating income increased significantly, rising 1.5 times from the year-ago level, on a significant increase in net sales, which grew by more than 15%, and an improvement in the gross profit margin of 2 percentage points. Both sales and profits far exceeded the
Slide 9: II-2. 1st Half Performance Variation Factors
II-2. 1st Half Performance Variation Factors Net sales and operating income increased Increase of net sales excluding impact of exchange rate: even excluding impact of exchange rate Photographic Products +1,390 million JPY (Significant increase in operating income Surveillance & FA Lenses +300 mill
Slide 10: II-3. 1st Half Results by Segment: Photographic Products
II-3. 1st Half Results by Segment ①Photographic Products FX Impact Actual Forecast Inc/Dec Inc/Dec Actual vs. 1st H (millions of JPY) (YoY) (vs. Forecast) 1st H FY21 1st H FY22 FY20 （※） *Apr. 28 1st H FY22 Amounts Ratio Amounts Amounts Ratio Net sales 19,513 20,800 22,737 +3,224 +16.5% +1,830 +1,937
Slide 11: II-3. 1st Half Results by Segment: Surveillance & FA Lenses
II-3. 1st Half Results by Segment ②Surveillance & FA Lenses FX Impact Actual Inc/Dec Inc/Dec (millions of JPY) Forecast Actual vs. 1st H (YoY) (vs. Forecast) 1st H FY21 1st H FY22 FY20 （※） *Apr. 28 1st H FY22 Amounts Ratio Amounts Amounts Ratio Net sales 4,659 5,200 5,694 +1,035 +22.2% +740 +494 +9.
Slide 12: II-3. 1st Half Results by Segment: Mobility & Healthcare Products, Others
II-3. 1st Half Results by Segment ③Mobility & Healthcare Products, Others FX Impact Actual Forecast Inc/Dec Inc/Dec (millions of JPY) Actual vs. 1st H (YoY) (vs. Forecast) 1st H FY21 1st H FY22 FY20 （※） *Apr. 28 1st H FY22 Amounts Ratio Amounts Amounts Ratio Net sales 3,211 3,000 3,267 +55 +1.7% +50
Slide 13: III. FY2022 Financial Forecast
III. FY2022 Financial Forecast Copyright © Tamron Co., Ltd. All rights reserved. 13
Slide 14: III-1. FY2022 Financial Forecast
III-1. FY2022 Financial Forecast Although affected by the semiconductor shortages, lockdown in China, and soaring material prices in the second half, net sales and profits are expected to increase YoY as in the first half. For the full year, operating income expected to increase by about 30% YoY d
Slide 15: III-2. FY2022 Forecast by Segment: Photographic Products
III-2. FY2022 Forecast by Segment ①Photographic Products Forecast Revised Inc/Dec Inc/Dec Actual (YoY) (vs. Forecast) (millions of JPY) FY22 Forecast FY21（※） *Apr. 28 FY22 Amounts Ratio Amounts Ratio Net sales 41,257 43,200 44,900 +3,642 +8.8% +1,700 +3.9% Operating 8,530 9,300 10,600 +2,069 +24.3%
Slide 16: Photographic Products - New Models Launched in Jul. 2022
Photographic Products - New Models Launched in Jul. 2022 Category Launched in 2019 Launched in 2020 Launched in 2021 17-70mm F/2.8 VC RXD(Model B070) Launched For FUJIFILM X-mount Launched Launched Fixed in Dec. in Dec. in Jan. Focal 24mm F/2.8 35mm F/2.8 20mm F/2.8 OSD M1:2（F050） OSD M1:2 (F051) OS
Slide 17: III-2. FY2022 Forecast by Segment: Surveillance & FA Lenses
III-2. FY2022 Forecast by Segment ②Surveillance & FA Lenses Forecast Revised Inc/Dec Inc/Dec (millions of JPY) Actual (YoY) (vs. Forecast) FY22 Forecast FY21（※） *Apr. 28 FY22 Amounts Ratio Amounts Ratio Net sales 9,326 12,300 11,600 +2,273 +24.4% (700) (5.7)% Operating 477 900 1,000 +522 +109.6% +10
Slide 18: III-2. FY2022 Forecast by Segment: Mobility & Healthcare Products, Others
III-2. FY2022 Forecast by Segment ③Mobility & Healthcare Products, Others Forecast Revised Inc/Dec Inc/Dec (millions of JPY) Actual (YoY) (vs. Forecast) FY22 Forecast FY21（※） *Apr. 28 FY22 Amounts Ratio Amounts Ratio Net sales 5,940 6,900 7,200 1,259 +21.2% +300 +4.3% Operating 813 900 800 (13) (1.7
Slide 19: Expanding the scope of business
Expanding the scope of business Deep cultivation of existing technology field Entry into peripheral technology field Copyright © Tamron Co., Ltd. All rights reserved. 19
Slide 20: III-3. Sustainability and ESG Initiatives (1) Value Creation Process
III-3. Sustainability and ESG Initiatives (1) Value Creation Process Copyright © Tamron Co., Ltd. All rights reserved. 20
Slide 21: III-3. Sustainability and ESG Initiatives (2) Main initiatives
III-3. Sustainability and ESG Initiatives (2) Main initiatives Main Items Details - Increasing the percentage of independent outside directors (with experience in corporate Improved structure of the Board of Directors management at another company) to at least one-third Improved structure of the Nom
Slide 22: IV. Reference Data
IV. Reference Data Copyright © Tamron Co., Ltd. All rights reserved. 22
Slide 23: IV-1. Financial Summary
IV-1. Financial Summary (millions of JPY) Dec 31, Jun 30, Change (vs. previous Inventories 2021 2022 Year-end) Inventories Turn over (Months) 15,000 3.0 Cash & Deposits 25,797 26,182 +385 2.3 2.4 Notes & Accounts 1.9 10,505 13,491 +2,985 10,000 2.0 Receivable 12,833 Inventories 11,233 12,833 +1,599
Slide 24: IV-2. Capital Investment, Depreciation, and R&D Expenses
IV-2. Capital Investment, Depreciation, and Research & Development Expenses Capital Investment / Depreciation R&D Expenses (Ratio of R&D Expenses (millions of JPY) Capital Ivestment Depreciation (millions of JPY) /Net Sales) 5,000 6,000 12% 9.7% 5,000 10% 4,000 8.7% 8.3% 8.3% 3,164 2,900 3,024 4,000
Slide 25: IV-3. Cash Flow Situation
IV-3. Cash Flow Situation (millions of JPY) 1st H FY21 FY21 1st H FY22 12,000 Operating CF 8,660 Investing CF 8,000 Free CF 3,992 4,879 Financing CF 3,345 4,000 1,966 292 0 (646) (632) (1,250) (1,222) (1,673) (4,000) (3,780) (8,000) 1st H FY21 FY21 1st H FY22 Cash Flow from Operating Activities 3,99
Slide 26: IV-4. Cash Dividends Outlook & Key Performance Indicators
IV-4. Cash Dividends Outlook & Key Performance Indicators （JPY） Dividends （JPY） Key Performance Indicators 100 Year-End Dividend 80% 350 EPS 14.1% 15% Interm Dividend ROE Dividend Payout Ratio 300 ROA 12.0% 80 11.0% 12% 56.3% 60% 12.5% 250 9.1% 10.5% 60 10.1% 9% 200 35.8% 40% 8.6% 32.8% 33.0% 5.9% 3
Slide 27: IV-5. Impact of Foreign Exchange Rate Fluctuations
IV-5. Impact of Foreign Exchange Rate Fluctuations ①Actual 1st Half FY2022 (millions of JPY) Exchange rate Impact Actual Actual Operating Net sales 1st H FY21 1st H FY22 Income USD 107.82 123.15 +2,040 +180 EUR 129.92 134.44 +110 +100 Others - - +470 +310 Total - - +2,620 +590 (Impact on previous ye
Slide 28: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for 1st Half of FY2022 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 presen