Slide 1: FY2017 Financial Results
FY2017 Financial Results February 13, 2018 Tamron Co., Ltd. (Code: 7740) Tamron Co., Ltd.
Slide 2: Contents
Contents Ⅰ. FY2017 Financial Results Ⅲ. Reference Data 1. FY2017 Summary P.4 1. Financial Summary P.22 2. FY2017 Financial Results P.5 2. Capital Investment, Depreciation, & P.23 3. FY2017 Performance Variation Factors P.6 Research & Development Expenses 4. FY2017 Results by Segment 3. Cash Flow Sit
Slide 3: FY2017 Financial Results
FY2017 Financial Results 3 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 4: FY2017 Summary
Ⅰ-１. FY2017 Summary 【Business Environment】 Economic Situation • Digital SLR cameras and interchangeable lenses showed slight growth from the previous year (DSLR: 10% down from the previous year, Non Reflex: 29% increase from the previous year) • Lens-integrated cameras increased by 6% from the pre
Slide 5: FY2017 Financial Results
Ⅰ-２. FY2017 Financial Results （millions of JPY） Actual Revised Actual Forecast Inc / Dec Inc / Dec FY16 FY17(17/8/4) FY17 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 59,903 62,500 60,496 592 101.0% (2,003) 96.8% Gross profit 18,901 － 20,596 1,695 109.0% － － (% Sales) 31.6% － 34.0% 2.4% － － － Operating
Slide 6: FY2017 Performance Variation Factors
Ⅰ-３. FY2017 Performance Variation Factors （millions of JPY） 5000 4,246 4000 1,235 3000 2,361 390 590 △330 2000 1000 0 Actual Decrease FX rate Reduction of Increase of Actual FY16 of Sales Impact Expenses Gross profit FY17 margin 6 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 7: FY2017 Results by Segment: Photographic Products
Ⅰ-４. FY2017 Results by Segment 1) Photographic Products （millions of JPY） Actual Revised Actual Forecast Inc / Dec FX Impact Inc / Dec FY16 FY17(17/8/4) FY17 vs. FY16 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 46,805 47,300 45,292 (1,512) 96.8% 1,300 (2,007) 95.8% Operating 1,783 144.2% 510 518 109.8
Slide 8: Photographic Products - New Models
Photographic Products - New Models Launched Launched Category Launched in 2016 in 1st Half, 2017 in 2nd Half, 2017 Wide Launched in Mar. Zoom 10-24mm VC HLD (B023) Launched Standard in Aug. Zoom SP 24-70mm F/2.8 VC USD G2 (A032) ※Best-in-class performance and image quality zoom lens（As of May 2017:T
Slide 9: FY2017 Results by Segment: Optical Components
Ⅰ-４. FY2017 Results by Segment 2) Optical Components （millions of JPY） Actual Revised Actual Forecast Inc / Dec FX Impact Inc / Dec FY16 FY17(17/8/4) FY17 vs. FY16 (a) (c) (b) (c)-(a) % (c)-(b) % Net Sales 2,358 3,300 3,375 1,017 143.2% 70 75 102.3% Operating (24) (99) － (224) － 75 200 10 Income (%
Slide 10: FY2017 Results by Segment: Commercial / Industrial-Use Optics
Ⅰ-４. FY2017 Results by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Revised Actual Forecast Actual Inc / Dec FX Impact Inc / Dec FY16 FY17(17/8/4) FY17 vs. FY16 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 10,739 11,900 11,827 1,084 110.1% 280 (72) 99.4% Operating 733 827 94 112.9% 7
Slide 11: Mid-Term Management Plan and FY2018 Financial Forecast
Ⅱ． Mid-Term Management Plan and FY2018 Financial Forecast 11 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 12: Approach for Transformation Theme
Ⅱ-1. Approach for Transformation Theme Reinforce Sales & Globalization of Sales, New Business Marketing Production, & R&D Development Customer Re-Building of Corporate Values R&D Process Management ・R&D with long-term perspective 【Production and R&D Function】 Factory （Discovery of advanced optical R
Slide 13: Approach for Transformation Theme
Ⅱ-1. Approach for Transformation Theme Reinforce Sales & Globalization of Sales, New Business Marketing Production, & R&D Development Customer Re-Building of Corporate Values R&D Process Management ＜New Business Development＞ FY16 ・Started the Camera module business（through cooperation with governmen
Slide 14: 2020 Mid-Term Management Plan: Basic Management Policy
Ⅱ-２. 2020 Mid-Term Management Plan 1)Basic Management policy Past︓Rolling Mid-term targets every year, but targets had not been achieved. ⇒ Planning to fix Mid-Term targets for 3 years ＜Basic management policy by segments ※Along with realization of the Transformation theme＞ Digital Camera Business W
Slide 15: 2020 Mid-Term Management Plan: Sales and Profits Targets
Ⅱ-２. 2020 Mid-Term management Plan 2)Sales and Profits Targets （billions of JPY） FY17 FY20 2020 Targets Net Sales 60.5 72.0 Operating 4.3 6.6 Income (% Sales) 7.0% 9.2% ＲＯＥ 5.8％ 9％ or more ・Although FY20 sales target is lower than the FY19 sales target announced in FY17, the operating income target
Slide 16: 2020 Mid-Term Management Plan: Sales Targets by Segments
Ⅱ-２. 2020 Mid-Term management Plan 3)Sales Targets by Segments Digital Camera ・Planning to decrease sales composition ratio of （billions of JPY） Survillance/FA Digital Camera 80％ to 60％ level 80.0 High Priority/NewBussines ・Highest priority on New business 10.0 60.0 category: 10billion yen 2.9 12.5
Slide 17: FY2018 Financial Forecast
Ⅱ-3. FY2018 Financial Forecast （millions of JPY） 1st H Net Sales 2nd H Actual Forecast Inc / Dec 80,000 FY17 FY18 (a) (b) (b)-(a) % 60,000 Net Sales 60,496 63,000 2,503 104.1% 29,404 33,583 35,200 40,000 Operating 4,800 553 113.0% 4,246 20,000 Income 30,499 26,913 27,800 (% Sales) 7.0% 7.6% 0.6% － 0
Slide 18: FY2018 Forecast by Segment: Photographic Products
Ⅱ-4. FY2018 Forecast by Segment 1) Photographic Products （millions of JPY） Actual Forecast Inc / Dec FY17 FY18 (a) (b) (b)-(a) % Net Sales 45,292 46,300 1,007 102.2% Operating 5,818 6,500 681 111.7% Income (% Sales) 12.8％ 14.0％ 1.2% － Despite the continuing decrease in OEM business, expecting incr
Slide 19: FY2018 Forecast by Segment: Optical Components
Ⅱ-4. FY2018 Forecast by Segment 2) Optical Components （millions of JPY） Actual Forecast Inc / Dec FY17 FY18 (a) (b) (b)-(a) % Net Sales 3,375 3,400 24 100.7% Operating (24) 200 224 － Income (% Sales) (0.7)％ 5.9% 6.6% － Although the larger decline in DSC/VC lens sales after the strong sales in FY17
Slide 20: FY2018 Forecast by Segment: Commercial / Industrial-Use Optics
Ⅱ -４. FY2018 Forecast by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Actual Forecast Inc / Dec FY17 FY18 (a) (b) (b)-(a) % Net Sales 11,827 13,300 1,472 112.4% Operating 827 900 72 108.7% Income (% Sales) 7.0％ 6.8% (0.2)% － Sales and profits expected to increase by 12% because
Slide 21: Reference Data
Ⅲ．Reference Data 21 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 22: Financial Summary
Ⅲ-１. Financial Summary （millions of JPY） Inventories Dec 31, Dec 31, Inventries Turnover Change （Month） 2016 2017 15,000 2.1 2.5 (c)-(b) 2.1 (a) (b) 12,000 1.9 2.0 Cash & Deposits 16,030 19,431 3,401 9,000 1.5 Notes & Accounts 13,419 14,061 642 6,000 12,875 1.0 Receivable 10,100 10,473 3,000 0.5 Inv
Slide 23: Capital Investment, Depreciation, & Research & Development Expenses
Ⅲ-２. Capital Investment, Depreciation, & Research & Development Expenses Capital Investment & Depreciation Research & Development Expenses (Ratio of R&D Expenses （millions of JPY） （millions of JPY） /Net Sales) Capital Ivestment Depreciation 5,000 5,000 10.0% 4,250 4,052 4,002 4,111 4,000 3,812 4,000
Slide 24: Cash Flow Situation
Ⅲ-３. Cash Flow Situation （millions of JPY） FY16 FY17 7,661 8,000 6,537 Operating CF 6,000 5,487 Investing CF 3,997 Free CF 4,000 Financing CF 2,000 0 △ 2,000 (1,524) (2,540) (2,174) (2,351) △ 4,000 FY16 FY17 Cash Flow from Operating Activities 6,537 7,661 Cash Flow from Investing Activities (2,540)
Slide 25: Cash Dividends Outlook & Key Performance Indicators
Ⅲ-４. Cash Dividends Outlook & Key Performance Indicators （JPY） Cash Dividends Key Performance Indicators （JPY） 200 EPS 10.0% 100 96.2% Year-End 100.0% 9.2% ROE Dividend Interm 8.0% ROA 80 80.0% 7.4% 8.0% Dividend 150 7.8% 6.6% 7.6% 60 60.0% 6.6% 6.0% 45.7% 4.5% 5.8% 100 39.0% 38.6% 35.7% 4.0% 40 30
Slide 26: Impact of Foreign Exchange Rate Fluctuations
Ⅲ-５. Impact of Foreign Exchange Rate Fluctuations FY2017 (JPY) （millions of JPY） Exchange Rate Impact Actual Actual Operating Net Sales FY16 FY17 Income USD 108.79 112.17 +1,000 +100 EUR 120.31 126.73 +520 +430 Others - - +130 +60 Total - - +1,650 +590 (Impact on FY2017 Actual performance) Forecast
Slide 27: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for FY2017 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 companyʼs presentation are b