Slide 1: Consolidated annual F.Y.2016 presentation
Consolidated annual F.Y.2016 presentation (Jan.1 to Dec.31, 2016) OPTEXGROUP CO., LTD. Stock code : 6914 Feb. 14th , 2017 <Disclaimer> The forward-looking statements, including OPTEX CO., LTD.’s operating results, strategies, and business plans, contained in these materials are based on judgments an
Slide 2: Contents
Contents １．F.Y. 2016 Results and F.Y. 2017 Plan ２．Medium-term Action plan and Growth strategy Copyright (C) 2017 OPTEX GROUP CO., LTD. 2
Slide 3: Contents
Contents １．F.Y. 2016 Results and F.Y. 2017 Plan ２．Medium-term Action plan and Growth strategy Copyright (C) 2017 OPTEX GROUP CO., LTD. 3
Slide 4: Change of Names of Main Business segments
Change of Names of Main Business segments F.Y. 2016 F.Y. 2017 Security Sensor segment Security Sensor segment Gardasoft Vision Ltd. Sensing Automatic Door Sensor Products Automatic Door Sensor segment segment Business SS Business EMS Segment （SS : Sensing Solution) Other （EMS : Electronics Manufactu
Slide 5: Overview of Consolidated Financial Results for F.Y. 2016
Overview of Consolidated Financial Results for F.Y. 2016 Compared with prior year Compared with plan Operating Results (Unit: million yen) F.Y. 2015 F.Y. 2016 Percent Released July 2016 Percent Change Change Results Results Change Revised Plan Change Net sales 27,793 31,027 +3,234 ＋11.6％ 32,000 -973
Slide 6: F.Y.2016 Results and Change in Results Over Past Years
F.Y.2016 Results and Change in Results Over Past 10 Years USD 108.84 GBP 147.72 Net sales reached a record high. USD 121.05 GBP 185.10 EUR 120.32 35,000 Each earnings category was nearly unchanged. EUR 134.31 8,000 31,027 7,000 30,000 27,793 5,300 25,678 6,000 25,000 23,582 20,916 20,699 25,727 5,00
Slide 7: Quarterly performance - Consolidated Net Sales (Year-on-year)
Quarterly performance - Consolidated Net Sales (Year- on-year) Increase in net sales 31,027 as a result of M&A +11.6% 3,206 27,793 ・Conversion of 2 newly consolidated 25,678 2,017 subsidiaries contributed to higher net 77 sales (CCS Inc., Gardasoft Vision Ltd.: Net sales +5,300 (2Q-4Q)) ・Lower net s
Slide 8: Quarterly performance - Consolidated Profit (Year-on-year)
Quarterly performance - Consolidated Profit (Year- on-year) Operating income Ordinary income Profit attributable to owners of parent - 4.2% - 4.6% 3,222 3,161 3,043 3,086 3,015 2,558 748 840 - 11.8% 818 765 1,178 2,051 481 1,897 707 1,809 711 872 753 ４Q 558 ４Q 697 ４Q 490 787 648 589 ３Q 718 ３Q 435 ３Q
Slide 9: Quarterly performance - Consolidated SG&A expenses (Year-on-year)
Quarterly performance - Consolidated Selling, general and administrative expenses (Year- on-year) Others R&D Expense Increase in various 3,740 expenses accompanying addition of newly consolidated subsidiaries 3,043 2,659 2,515 2,366 2,389 2,443 2,362 2,359 2,319 2,150 2,172 Year- on-year Selling, ge
Slide 10: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income (Year- on-year) (Unit: million yen) Changes in personnel expense, etc. -213 Factor 4 Factor 2 COS% Down +460 Impact of Factor 3 Exchange Rate Impact of +814 Exchange Rate -1,146 Factor6 Factor 1 3,161 Factor 5 3,015 Sales Increase Includes addition of gross prof
Slide 11: Free Cash Flows
Free Cash Flows Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Cash and Cash Equivalents 9,770 9,901 10,000 3,487 2,355 1,893 28 (511) (438) (565) (1,547) (Unit: million yen) (2,341) F.Y. 2014 F.Y. 2015 F.Y. 2016 Copyright (C) 2017 OPTE
Slide 12: Business by Segment - Security Sensors
Business by Segment - Security Sensors Region F.Y. 2016 Results F.Y. 2017 Plan Sales of intrusion detectors for outdoor for residential dwellings for Strengthen sales of products for “disaster prevention lighting applications” JAPAN security companies struggled and slipped lower. Increase number of
Slide 13: Business by Segment - Automatic Door Sensors
Business by Segment - Automatic Door Sensors Region F.Y. 2016 Results F.Y. 2017 Plan Sales of automatic door sensors were flat because of the slump Broaden product lineup to meet new safety standards. JAPAN in construction and capital investment for commercial Introduce high value-added products equ
Slide 14: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Region F.Y. 2016 Results F.Y. 2017 Plan Sales of organic EL, semiconductors, rechargeable batteries, Concentrate on increasing sales of products such as displacement sensors for electronic components, LED lighting for inspection for the food the elec
Slide 15: Business by Segment - Machine Vision Lighting Business
Business by Segment - Machine Vision Lighting Business Region F.Y. 2016 Results F.Y. 2017 Plan Increased opportunities to receive orders by expanding testing Further expand solutions that utilize lenses, cameras, and other products, JAPAN room and through solution proposals approach. raise proposal
Slide 16: Effect of exchange rates
Effect of exchange rates Mean exchange rate （Unit: yen） Released July F.Y. 2015 F.Y. 2016 Rate of F.Y. 2016 F.Y. 2017 2016 (Results) (Results) Change (Plan) (Plan) Revised Plan JPY／USD 121.05 108.84 - 10.1% 120 105.91 100 JPY／GBP 185.10 147.72 - 20.2% 170 145.10 130 JPY／EUR 134.31 120.32 - 10.4% 1
Slide 17: F.Y. 2017 plan
F.Y. 2017 plan USD 100 GBP 130 Seek to achieve record net sales and increase all EUR 110 40,000 earnings categories. 8,000 35,600 35,000 7,000 31,027 30,000 27,793 6,000 25,678 25,000 23,582 5,000 20,916 20,699 3,800 20,000 18,502 3,043 4,000 17,395 3,222 3,086 15,124 15,000 2,661 2,628 3,700 3,000
Slide 18: 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：％） 50 Commemorative dividend 100 Year-end dividend 45 45 ROE Shareholders's equity ratio Interim dividend 40 76.3 78.0 Dividend payout ratio 75.9 40 80 35 65.0 30 5
Slide 19: Contents
Contents １．F.Y. 2015 Results and F.Y. 2016 Plan ２．Medium-Term Action Plan and Growth Strategy Copyright (C) 2017 OPTEX GROUP CO., LTD. 19
Slide 20: Medium-Term Action Plan
2. Medium-Term Action Plan １．Growth strategy 1-1．Visual Verification _ Security business 1-2．Factory Automation _Machine Vision Business Lighting and Sensor Business ２．Business indicators and performance targets Copyright (C) 2017 OPTEX GROUP CO., LTD. 20
Slide 21: Creating "The NEW"
2. Medium-Term Action Plan Creating “The NEW” - Advancing Rapidly and Boldly Into the Future! - Sharing of human resources, productivity, and information sources Strengthening our organization Expansion of Growth strategy existing businesses Reform of ・Visual Verification business ・Factory Automatio
Slide 22: Growth strategy: Visual Verification
2. Medium-Term Action Plan １．Growth strategy 1-1．Visual Verification _ Security business 1-2．Factory Automation _Machine Vision Business Lighting and Sensor Business ２．Business indicators and performance targets Copyright (C) 2017 OPTEX GROUP CO., LTD. 22
Slide 23: Surveillance camera demand Upward trend
1-1．Visual Verification _ Security business (Units: 1,000 units) Worldwide security camera market trend Source：IMS Research 50,000 40,000 Surveillance camera demand 30,000 12,900 18,900 26,000 ▼ Upward trend 8,800 6,780 20,000 3,880 5,100 15% 2,785 2,245 annual growth rate 10,000 18,670 19,650 19,50
Slide 24: 1-1. Visual Verification _ Security business
1-1．Visual Verification _ Security business Accelerated “Visual Verification” Residential UK Law enforcement verifies camera images to determine if they need to go to the scene Market trend US Some states have fines for false alarms ▼ ▼ New initiatives New products in collaboration with world’s lead
Slide 25: Mid-term Business Goals
2. Mid-term Business Goals １．Growth strategy 1-1．Visual Verification _ Security business 1-2．Factory Automation _Machine Vision Business Lighting and Sensor Business ２．Business indicators and performance targets Copyright (C) 2017 OPTEX GROUP CO., LTD. 25
Slide 26: Factory Automation _ Machine Vision Lighting and Sensor Business
1-2．Factory Automation _ Machine Vision Business Lighting and Sensor Business Sales and Solutions Development and Production 1. High value-added product 1. More efficient development total solutions → Speed and improved quality 2. Two companies working 2. More efficient production together to develo
Slide 27: Synergistic effects
1-2．Factory Automation _ Machine Vision Business Lighting and Sensor Business 2016 2021 40% 70% Synergistic 50% effects In Japan In Japan ▼ MV lighting industry Our goal: The overwhelming 20% 50% No. 1 share of the worldwide market Overseas Overseas 8.2 billion yen 20 billion yen Copyright (C) 2017
Slide 28: Factory Automation _ Machine Vision Lighting and Sensor Business
1-2．Factory Automation _ Machine Vision Business Lighting and Sensor Business Providing FA sensors for quality control used in factory production lines and automation OPTEX's Strengths OPTEX FA CO., LTD R&D capabilities High quality at low cost 2002: Spun off the OPTEX industrial photoelectric sen
Slide 29: Mid-term Business Goals
2. Mid-term Business Goals １．Growth strategy 1-1．Visual Verification _ Security business 1-2．Factory Automation _Machine Vision Business Lighting and Sensor Business ２．Business indicators and performance targets Copyright (C) 2017 OPTEX GROUP CO., LTD. 29
Slide 30: Optex Group's Management Indicator
２．Business indicators and performance targets Optex Group's Management Indicator Ordinary profit Sales growth ROE more than more than 15% up 15% 10% sales-cost ratio 50% Copyright (C) 2017 OPTEX GROUP CO., LTD. 30
Slide 31: Business indicators and performance targets
２．Business indicators and performance targets Holding Company OPTEX GROUP CO., LTD Looking forward to the creation of new operating （Tokyo Stock Exchange Market companies along with growth of the entire Group 1st Section：#6914） New business unit New business unit New business unit OPTEX CO.,LTD. OPT
Slide 32: Our goal: Consolidated net sales of ¥50 billion and operating profit of ¥7.5 billion in 2019
２．Business indicators and performance targets Our goal: Consolidated net sales of ¥50 billion and operating profit of ¥7.5 billion in 2019 50,000 35,600 7,500 31,027 27,793 25,678 23,582 22,167 20,916 20,699 18,502 3,043 3,800 3,854 17,395 2,628 3,222 3,086 15,124 2,558 2,661 1,761 1,680 2,108 4,076
Slide 33: www.optex.co.jp /e /group /
www.optex.co.jp /e /group /