Optex Group Company Limited · TSE:6914
Optex — Q2 2018 Earnings Presentation
32 slides from Optex's earnings presentation, Aug 6, 2018
Slide 1: Summary of Consolidated Financial Results for Second Quarter of F.Y. 2018
Summary of Consolidated Financial Results for Second Quarter of F.Y. 2018 (Jan.1 to Jun.30, 2018) OPTEX GROUP CO.,LTD. August 6, 2018 （Tokyo Stock Exchange Market 1st Section:#6914） Copyright (C) 2018 OPTEX GROUP CO., LTD.
Slide 2: Key Points of Financial Results from 2Q of F.Y. 2018
Key Points of Financial Results from 2Q of F.Y. 2018 ・Net sales increased steadily, +6% year-on-year ・Operating income decreased, -4% year-on-year, due to a change in product composition and active investment for future growth. ・In particular, the FA business remained strong and was the driver. Copy
Slide 3: Summary of Consolidated Financial Results for Second Quarter of F.Y. 2018
Summary of Consolidated Financial Results for Second Quarter of F.Y. 2018 Operating Results F.Y. 2017 2Q F.Y.2018 2Q Percent Change (Unit: million yen) (1-6) Results (1-6) Results Change Net sales 18,514 19,674 +1,160 ＋6.3% Operating income 2,724 2,609 -115 -4.2% （Operating income Ratio） （14.7%） （13
Slide 4: Quarterly performance - Consolidated Net Sales
Quarterly performance - Consolidated Net Sales (Year- on-year) 9,906 9,844 9,830 9,145 9,369 9,084 2,417 2,552 2,344 MVL Business 2,179 2,343 2,083 1,728 1,990 2,088 2,185 FA Business 1,686 1,911 SS Business 5,761 5,301 EMS Business 5,116 5,200 5,090 5,204 F.Y. 2017 2Q F.Y. 2018 2Q (1-6) Results (1-
Slide 5: Comparison of Financial Results between Segments
Comparison of Financial Results for the Second Quarter of F.Y. 2018 between Segments F.Y. 2017 2Q(1-6) Results F.Y. 2018 2Q(1-6) Results Operating Results Operating Operating (Unit: income Percent income Percent Net sales Net sales million yen) （Operating Change （Operating Change income Ratio） incom
Slide 6: Factors of change in Net Sales
Factors of change in Net Sales (Year- on-year) Impact of MVL EMS Exchange Business Business Rate FA Business SS Business +344 -19 +232 19,674 +620 18,514 -17 F.Y. 2017 Consolidated Net Sales F.Y. 2018 2Q(1-6) Results +1,160 million 2Q(1-6) Results (Unit: million yen) Copyright (C) 2018 OPTEX GROUP C
Slide 7: Factors of change in Operating Income
Factors of change in Operating Income (Year- on-year) Sales Impact of Increase in Increase COS% Up Exchange Rate expenses +523 -291 +283 -589 Impact of 2,724 Exchange Rate -41 2,609 Gross operating income Selling, general and administrative Expenses F.Y. 2017 Consolidated Operating F.Y. 2018 2Q(1-6)
Slide 8: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region F.Y. 2018 2Q(1-6) Results Sales of outdoor intrusion detectors for security companies and large-scale critical Japan facilities were weak, and sales dipped year-on-year. Sales increased year-on-year through large-scale orders for outdoor int
Slide 9: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region F.Y. 2018 2Q(1-6) Results Sales of automatic door sensors for domestic leading customers were robust and Japan increased year-on-year. Sales hiked year-on-year as a result of strong sales of automatic door sensors for large AMERICAs cu
Slide 10: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Region F.Y. 2018 2Q(1-6) Results Substantial increase in sales because sales of displacement sensors for semiconductors, Japan secondary batteries, and flat panel displays and in the electronic component industry were strong. Sales of displacement se
Slide 11: Business by Segment - Machine Vision Lighting Business
Business by Segment - Machine Vision Lighting Business Region F.Y. 2018 2Q(1-6) Results Efforts to enhance solutions and to expand the sales area by opening laboratories were Japan successful, and sales increased. AMERICAs Sales rose due to large deals for smartphones and continued projects in North
Slide 12: Results by Segment and Region - Progress Rate
Results by Segment and Region - Progress Rate * (Unit: million yen) Segment・Region F.Y. 2018 Annual Forecast F.Y. 2018 2Q(1-6) Results Progress Rate（％） SS Business(Security Sensors) 14,801 6,939 47％ Japan 2,713 943 35％ AMERICAs 2,586 1,584 61% EMEA 7,670 3,638 47% Asia and Oceania 1,832 774 42% SS B
Slide 13: F.Y. 2018 1H and Full-year Consolidated Earnings Projection
F.Y. 2018 1H and Full-year Consolidated Earnings Projection No change from the beginning of period plan 20,826 40,500 19,674 18,514 18,990 18,024 13,928 13,865 12,517 13,161 13,003 2,776 2,260 2,827 5,400 1,965 2,724 2,573 2,161 1,620 1,675 1,529 1,497 1,518 1,423 1,632 2,609 2,691 5,300 1,178 1,547
Slide 14: Future Growth Strategies
Future Growth Strategies 1. Expand the factory automation business 2. Promote IoT strategies 3. Strengthen manufacturing capabilities Copyright (C) 2018 OPTEX GROUP CO., LTD. 14
Slide 15: 1. Expand the factory automation business
1. Expand the factory automation business Markets relating to semiconductors (for automobiles, IoT and AI) and robots expand. Automobiles IoT AI Robotics Electric vehicles and advanced Labor saving and Action to cope with the decline Growing demand for data centers driver-assistance systems (ADAS) w
Slide 16: FA business: Establish a local corporation in the U.S.
1. Expand the factory automation business FA business: Establish a local corporation in the U.S. Overview of OPTEX FA INC. Purpose Name: OPTEX FA INC. ◆Increase demand ◆Change in strategy Established: March 1, 2018 for capital investment Capital: $1million and sensors for FA （Current） Fiscal year-en
Slide 17: Strengthen cooperation for development and manufacturing of LED lighting
1. Expand the factory automation business Strengthen cooperation for development and manufacturing of LED lighting for image inspections Added CCS Inc. as a 100%-owned subsidiary in July 2018 × Net sales 9 billion yen Net sales 1 billion yen （F.Y. 2017 Results） （LED lighting for image inspections ／F
Slide 18: 2. Promote IoT strategies: Acquire Three Ace
2. Promote IoT strategies Acquire Three Ace Co,. Ltd. Overview of Three Ace Strengths and Development Cases Name: Three Ace Co., Ltd. ◆Strengths: Thirty-seven years of experience in business system development Address: Shimogyo-ku, Kyoto Provide one-stop service from the Established: August 4, 1981
Slide 19: Link Sensors with IoT Technologies and Provide Solutions
2. Promote IoT strategies Example of IoT strategies SS Business Use in Security-related Areas Use in FA Business Selected as "Tools for Supporting Smart Monodzukuri" at Robot Revolution Initiative (RRI) of Japan, supported by the Ministry of Economy, Trade and Industry Sensor equipped with a camera
Slide 20: 3. Strengthen manufacturing capabilities
3. Strengthen manufacturing capabilities Optimize the overall in-group production functions Holding Company OPTEX GROUP CO., LTD OPTEX CO.,LTD. OPTEX FA CO., LTD. CCS Inc. OPTEX MFG Co., Ltd. Sales, Development & Manufacture of the Sales & Development of Sales & Development Group’s products・ Product
Slide 21: Establish OPTEX MFG CO.,LTD.
3. Strengthen manufacturing capabilities Establish OPTEX MFG CO.,LTD. Overview of OPTEX MFG CO.,LTD. Purpose ◆ Consolidate redundant or similar functions Name: OPTEX MFG CO.,LTD. among business companies Address: Otsu-shi, Shiga ◆ Spread production innovation activities ◆ Promote production technolo
Slide 22: F.Y. 2019 Consolidated Earnings Targets
F.Y. 2019 Consolidated Earnings Targets Our goal: Consolidated net sales of ¥50 billion and operating profit of ¥7.5 billion in 2019 50,000 40,500 37,504 31,027 27,793 5,400 25,678 7,500 23,582 5,036 22,167 20,916 20,699 4,076 17,395 18,502 5,300 15,124 3,043 3,222 3,086 4,885 2,489 1,830 1,680 2,62
Slide 23: https://www.optexgroup.co.jp/
https://www.optexgroup.co.jp /
Slide 24: Supporting documentation
Supporting documentation Copyright (C) 2018 OPTEX GROUP CO., LTD. 24
Slide 25: Estimated Exchange Rate and Exchange Sensitivity
Estimated Exchange Rate and Exchange Sensitivity Exchange rate F.Y. 2017 F.Y. 2018 (Unit: Yen) （Results） （Plan） JPY/USD 112.19 110 JPY/GBP 144.51 140 JPY/EUR 126.67 125 Impact on our full- F.Y. 2017（Results） F.Y. 2018（Plan） year performance by a-yen Operating Operating appreciation Net sales Net sal
Slide 26: Partial Revision to Main Business Segments
Partial Revision to Main Business Segments F.Y. 2017 F.Y. 2018 Security Sensor Security Sensor segment segment Automatic Door SS Automatic Door SS Sensor segment Business Sensor segment Business EMS Segment （EMS: Electronics Manufacturing （SS : Sensing Solution) Other (Water Quality Measurement Solu
Slide 27: Quarterly performance - Consolidated Profit
Quarterly performance - Consolidated Profit (Year- on-year) Operating income Ordinary income Profit attributable to owners of parent 1,392 1,461 1,467 1,332 1,309 1,312 1,261 1,091 1,070 1,148 1,127 1,133 1,138 1,010 844 755 777 812 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 2017 2018 201
Slide 28: Quarterly performance - Consolidated SG&A expenses
Quarterly performance - Consolidated Selling, general and administrative expenses (Year- on-year) Others R&D Expense Year-on-year Selling, 3,581 general and administrative 3,547 3,197 3,266 3,215 3,395 expenses +8.2% Personnel cost +8.3% Expense +6.4% R&D expense +12.0% 609 649 667 834 663 746 1Q 2Q
Slide 29: Company Overview
Company Overview Copyright (C) 2018 OPTEX GROUP CO., LTD. 29
Slide 30: Company Overview - Holding Company Structure
Company Overview _ Holding Company Structure Holding Company OPTEX GROUP CO., LTD （Tokyo Stock Exchange Market 1st Section：#6914） OPTEX CO.,LTD. OPTEX FA CO., LTD. CCS Inc. Three Ace Co., Ltd. OPTEX MFG Co., Ltd. Sales, Development & Development of Manufacture of the Sales & Development Sales & Deve
Slide 31: Company Overview - Data
Company Overview _ Data Sales by Product Category Sales by Region Others AMERICAs Automatic 8% 12% Door Sensors 11% Security Asia/Oceania Sensors Factory 37.5 37% 14% 37.5 Japan 42% Automation billion yen billion yen (2017) (2017) 20% LED Lighting for EMEA Image Inspection 32% 24% EMEA : Europe, the
Slide 32: Company Overview - Global Market Share
Company Overview _ Global Market Share Global niche No.1 Security Automatic door Machine vision sensors sensors lighting 40% 30% 30% Intrusion detector Automatic door LED lighting for outdoor sensor for inspection Infrared sensor Sensors for general home use Push plate Sensors for large-scale critic