Slide 1: Consolidated Annual F.Y.2014 Presentation
OPTEX.CO., LTD. Consolidated Annual F.Y.2014 Presentation
Slide 2: Summary of Annual F.Y.2014, Business Strategy, Medium-Term Plan
１．Summary of Annual F.Y.2014 (Consolidated) ２．Progress of Business Strategy ３．Medium-Term Action Plan And Earnings Forecast 2
Slide 3: 1. Summary of Annual F.Y.2014 (Consolidated)
1. Summary of Annual F.Y.2014 (Consolidated) 3
Slide 4: Summary of Annual F.Y.2014: Consolidated Sales
Summary of Annual F.Y.2014 : Consolidated Sales (Unit: million yen) 4
Slide 5: Consolidated Sales (Quarterly performance)
Summary of Annual F.Y.2014 : Consolidated Sales (Quarterly performance) 2012 Result 2013 Result 2014 Result USD 80 USD 98 USD 106 (Unit: million yen) GBP 126 GBP 153 GBP 174 EUR 103 EUR 130 EUR 140 20,699 23,582 25,678 year-on-year : Security sensors +10％, Automatic door sensors +8%, FA +11％ 5 (Deta
Slide 6: Summary of Annual F.Y.2014: Consolidated Profit
Summary of Annual F.Y.2014 : Consolidated Profit (Unit: million yen) 6
Slide 7: Quarterly performance - Consolidated Profit and SG&A
- Consolidated Profit Quarterly performance - Selling, general and administrative expenses (Unit: million yen) 1Q earnings were higher because of a surge in demand at our subsidiary Giken Trastem Co., Ltd. ahead of the consumption tax hike. Profits dropped in the 4Q due to an increase in selling, ge
Slide 8: Factors of change in Operating Income
Factors of change in Operating Income (Unit: million yen) Factor4 Impact of Exchange Rate Factor5 Factor6 +844 Factor7 Impact of Exchange Rate -414 Personnel cost Factor3 Increase -473 Factor2 Expense Increase COS% Down -25 Factor1 +350 New joint 2,558 Sales Increase venture company 2,108 +366 -198
Slide 9: Free Cash Flows
Free Cash Flows ■ Cash Flows of Operating Activities Cash and Cash Equivalents ■ Cash Flows from Investing Activities (Unit: million yen) ■ Cash Flows from Financing Activities (Unit: million yen) 28 922 606 269 2,436 1,921 1,893 1,818 851 1,64０ 1,514 1,375 1,371 1,212 524 9
Slide 10: Business by Segment - Security Sensors
Business by Segment - Sensing Products Business Security Sensors (Unit: million yen) 9,916 11,879 13,013 ■Net Sales：13,013million yen, year-to-year comparison ＋10% ＋1,134 million yen （Japan +2%, North America＋9%, Europe＋13%, Asia＋7%, Others +15%） Japan : Sales for security companies increased steadi
Slide 11: Business by Segment - Automatic Door Sensors
Business by Segment - Sensing Products Business Automatic door Sensors (Unit: million yen) 3,491 3,923 4,245 ■Net Sales：4,245 million yen, year-to-year comparison ＋8% ＋322 million yen （Japan＋2%, North America＋18%, Europe＋18%) Japan：There was a reactionary decline following last-minute orders ahead o
Slide 12: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business (Unit: million yen) 4,407 4,665 5,180 ■Net Sales：5,180 million yen, year-to-year comparison ＋11% ＋515 million yen （Japan＋13%, Europe＋2%, Asia +60%) Japan : Sales remained stable, boosted by invigorated capital investment in the logistics, electronic
Slide 13: Exchange sensitivity
Exchange sensitivity 1．Assumed exchange rate （Unit: yen） 2013 Result 2014 Result Rate of change 2015 Plan rate USD 98 106 8% 115 GBP 153 174 14% 175 EURO 130 140 8% 130 2．Impact on our full-year performance by a-yen depreciation (Unit: million yen) 2014 2015 Net Sales Operating Net Sales Operating I
Slide 14: Dividends, Dividend Payout Ratio and ROE
Dividends, Dividend Payout Ratio and ROE Dividends and dividend payout ratio ROE/Shareholders’ equity ratio (Unit: yen/%) (Unit: %) Note: Implement a 5 yen interim period commemorative dividend for the 35th anniversary of the Company’s founding 14
Slide 15: (Ref.) Currency Ratio
(Ref.) Currency Ratio * Local currencies: Dollar, pound, euro, won, yen, etc. Sales: Yen and local currencies Sales: Local currency Sales: Local currency Sales breakdown by currency € Euro China production plants, etc. Parts procurement: Dollars Cost breakdown by currency Dollar/pound 47%, yen 53% 1
Slide 16: 2. Progress of Business Strategy
２．Progress of Business Strategy 16
Slide 17: Security Sensors - Global Security Market Trend
Sensing Products Business Security Sensors - Global Security Market Trend Security camera sales grow at Stable growth of intrusion detection about 13% annually, centered on at a 5.0% annual rate Network (IP) cameras. （Unit：US million ＄) （Unit：US million ＄） 8,000 Network Security Cameras 7,000 Analog
Slide 18: Security Sensors - Global Security Market Trend by Region
Sensing Products Business Security Sensors - Global Security Market Trend The market in the US is large, The major targets are residences while Asia has the strongest and commercial facilities growth rate （Unit：US million ＄） （Unit：US million ＄） 18 Source：The World Market for Intruder Alarms 2013 Edi
Slide 19: Security Sensors - Business Picture by Category
Sensing Products Business Security Sensors - Business Picture by Category Category Ideal business picture (1) Demonstrate strength in outdoor sensing through pairing with cameras Core Businesses (2) Contribute to greater efficiency of video surveillance in medium to large-scale critical facilities m
Slide 20: Security Sensors - Core Business Strategy (1)
Sensing Products Business Security Sensors - Core Business Strategy – (1) Spread proactive outdoor crime prevention in home and light commercial markets! Challenge to Visual Verification (Onsite response after intruder is confirmed by image) Cloud Sensor cameras 20
Slide 21: Visual Verification
Visual Verification The Los Angeles Police Department has a higher crime- arrest ratio with security systems that use security cameras than with security systems that only use sensors. Number of Number of Arrest Ratio Calls Arrests to Calls Silent Robbery Alarm 3,484 24 0.7% audible Burglary Alarm 9
Slide 22: Security Sensors - Core Business Strategy (2)
Sensing Products Business Security Sensors - Core Business Strategy – (2) Steadily conclude agreements for projects and expand them with laser scanning sensors! Data center Water treatment plant Power plant Laser scanning sensors 22
Slide 23: Projects of image
Projects of image Layer 0 Layer 3 Outside Facility Perimeter Protection Important Facility Layer 2 Outdoor Field Zone Layer 1 TM Photo beam Perimeter Line Fiber Defender Outdoor PIR LINK Cameras 23
Slide 24: Security Systems for Mega Solar
Sensing Products Business Security Sensors - Security Systems for Mega Solar Operations launched at 1,110 of the 8,780 certified facilities nationwide (as of March 31, 2014). With a spate of copper wire thefts at seven facilities in Shiga, there was a struggle to prevent crime when no one was around
Slide 25: New Applications Vehicle Detection Strategy
Sensing Products Business Security Sensors - New Applications Vehicle Detection Strategy Develop products targeting global market! Domestic fee parking lot case study Parking meter sensor demonstration experiments have been conducted in North America Vehicle lock plate surveillance market is ¥1.2 bi
Slide 26: Ref.) 2014 Top Security 50
Ref.) 2014 Top Security 50 Source：a&s ASIA/Nov. 2014 14 Ranking 13 Ranking company Headquarters Product Group 2013 (in US$Million) 1 1 Honeywell Security US Multiple 2700.0 2 2 Bosch Security Systems Germany Multiple 2039.9 3 4 Hikvision Digital Technology China Video Surveillance 1656.2 4 3 Safran
Slide 27: Automatic Door Sensors - Business Picture by Category
Sensing Products Business Automatic door Sensors - Business Picture by Category Become No. 1 in the world in the automatic door and shutter sensor markets! Category Ideal business picture Strengthen measures for European and American automatic Automatic door door manufacturers and actively propose O
Slide 28: Factory Automation Business - Medium-Term Action Plan and Strategy
Factory Automation Business - Medium -Term Action Plan and Strategy Action Plan Strategy Expand sales to automobiles, electronic components, and foods, Expansion of domestic medical products and cosmetics with displacement sensors at business the core Aggressive roll-out Sales expansion via Chinese
Slide 29: Establishment of a Joint Venture company (Distributor) in China
Factory Automation Business - Establishment of a Joint Venture company (Distributor) in China （Unit: Million yen） Sales Plan Beijing: 8 people Shanghai: 13 people Guangzhou: Subsidiary Overview 27 people Company name: Guangzhou Optex Industrial Automation Control Equipment Co., Ltd. Business descrip
Slide 30: Sensing Products Business - Others
Sensing Products Business - Others Sony Assurance adopts OPTEX driving behavior sensing technology in new type of automobile insurance that is a first in Japan -Joint development of special equipment for automobile insurance- Sales launch: Mid-February 2015 30
Slide 31: PHYD (driving characteristic-based coverage) insurance
PHYD (driving characteristic-based coverage) insurance PAYD Driving distance-related coverage PHYD Driving characteristic-based coverage Pay As You Drive Pay How You Drive Driving characteristics Driving distance (Abrupt braking, sharp steering, etc.) Short distances: Safe driving: Insurance premium
Slide 32: Overview of drive counter device to measure driving characteristics
Overview of “drive counter” specialized device to measure driving characteristics 「SMOOTH COUNT ®」 Insurance result Smooth continuous frequency and Insurance premiums refunded average frequency according to points if there are 60 Can be counted smoothly or more points ＝Enables operation without sudd
Slide 33: OPTEX's proprietary driving behavior measurement technology
OPTEX's proprietary driving behavior measurement technology Technology for recording only dangerous driving Device sensing accuracy is of utmost importance for evaluating driving correctly. Drive Counter distinguishes operating conditions, such as whether sudden behavior is the result of driving ope
Slide 34: 3. Medium-Term Objectives
3. Medium-Term Objectives 34
Slide 35: Create "the New"
Management Policies Slogan Create “the New” Continue building the base for the new OPTEX create businesses that will enable OPTEX to achieve an average annual growth rate in consolidated sales of at least 15% Mid-term management objectives FY2015 Strive to achieve consolidated net sales of 30 billio
Slide 36: 2015 Management philosophy
2015 Management philosophy Focus on accelerating new product development and contribute greatly to sales starting next fiscal year! Number of products Number of products to be Segment developed in 2014 developed in 2015 Security Sensors 4 18 Automatic Door Sensors 2 5 Others 3 6 Total 9 29 General p
Slide 37: Earnings Forecast
Earnings Forecast （Unit：million yen） Operating Ordinary Sales Net Income ROE Income Income 2014 25,678 2,558 3,043 1,897 8.6% 2015 29,600 3,400 3,500 2,400 10.0% Sales growth rate ＋15% ＋33% ＋15% ＋27% ＋1.4P 37
Slide 38: OPTEX CO., LTD.
OPTEX CO., LTD. *The data utilized in this presentation was based upon our assumption and estimated information. The actual business results might be different from the numbers we have shown you here because of various factors.