Slide 1: FY2024 Financial Results
FY2024 Financial Results February 7, 2025 Tamron Co., Ltd. (Code: 7740)
Slide 2: Contents
Contents I. Upward Revision of New medium-term III. FY2025 Financial Forecast management plan “Value Creation26 ver.2.0” 1. FY2025 Financial Forecast 1. Positioning of the “Value Creation26 ver.2.0” 2. FY2025 Forecast by Segment 2. Outline of the “Value Creation26 ver.2.0” (1) Photographic Products
Slide 3: I. Upward Revision of New medium-term management plan "Value Creation26 ver.2.0"
I. Upward Revision of New medium-term management plan “Value Creation26 ver.2.0”
Slide 4: I.-1. Positioning of the "Value Creation26 ver.2.0"
I.-1. Positioning of the “Value Creation26 ver.2.0” Launch of the new medium-term plan "Value Creation26” Medium-term plan Vision23 ”Value Creation26 ver.2.0” 2018～2020 2021～2023 長期ビジョン Long-term vision 2024～2026 With the strong progress made since the first year of the new medium-term plan, Aiming
Slide 5: Outline of Value Creation26 ver.2.0: Basic Framework
I.-2. Outline of the ”Value Creation26 ver.2.0“ ①Basic Framework “Value Creation26 ver.2.0” We will overcome challenges, achieve high-quality leaps, and maximize corporate value through new endeavors. Reaching long-term vision "Net sales 100-billion-yen Company" in the next Medium-Term Plan Business
Slide 6: Outline of Value Creation26 ver.2.0: Management Numerical Targets
I.-2. Outline of the ”Value Creation26 ver.2.0“ ②Management Numerical Targets Achieve growth in sales and profit while maintaining high profitability and 『Value Creation26 ver.2.0』 efficiency. FY2024 Results: Significant achievement of all targets in the first year of the • Record high Net sales f
Slide 7: Business Strategy: Functional Strategy
I.-3. Business Strategy of the “Value Creation26 ver.2.0” ①Functional Strategy Business Strategy Ensure continuous growth by allocating appropriate resources to each business Advance the structure of the Photographic products business as a cash cow Expand scale in both “Surveillance＆FA lenses”,
Slide 8: Functional Strategy - Reinforce the global tri-pilar production system
I.-3. ①Functional Strategy - Reinforce the global tri-pilar production system Name Tamron Vietnam Vinh Phuc Factory Start operation of Vietnam 2nd Factory Place Thang Long Industrial Park 3, Vinh Phuc Province, Vietnam Expand production capacity Investment Approximately 4 billion yen (scheduled) S
Slide 9: Business Strategy: Photographic Products
I.-3. Business Strategy of the “Value Creation 26 ver.2.0” ②Photographic Products Inspire and enrich people’s lives Photographic Products Actual Initial Target New Target ver.2.0 2023 Improve the high-profit structure as core business 2026 2026 Accelerate the development of own-brand product Net S
Slide 10: Business Strategy: Surveillance & FA Lenses
I.-3. Business Strategy of the “Value Creation 26 ver.2.0” ③Surveillance & FA Lenses Create a secure and safe society Surveillance & FA Lenses Actual 2023 Initial Target New Target ver.2.0 2026 2026 Re-transform into a growth business, targeting for more than 10% in operating income on net sales Net
Slide 11: Business Strategy: Mobility & Healthcare Products, Others
I.-3. Business Strategy of the “Value Creation 26 ver.2.0” ④Mobility & Healthcare Products, Others Healthy and secure lifestyle Mobility & Healthcare Products, Others New Target Further growth in automotive and medical business Actual Initial Target ver.2.0 & accelerate creation of new business 2023
Slide 12: Financial Strategy: Basic policy
I.-4. Financial Strategy of the “Value Creation 26 ver.2.0” ①Basic policy Building effective management while ensuring stability Appropriate Capital Structure Enhance Shareholder Return Sustain an ROE of appx.16% Stable shareholder returns & flexible repurchase of treasury stock Secure capital at tw
Slide 13: Financial Strategy: Aimed Capital Structure
I.-4. Financial Strategy of the “Value Creation 26 ver.2.0” ② Aimed Capital Structure Optimal Capital Structure Shareholder Return Aimed 2024～2026 Capital Flexible Share Repurchases Structure Target of Total Return Ratio: approx. 60% Over 80% To the Targeting to 70% level Approx.75% 39.8% Over 5 mos
Slide 14: Financial Strategy: Cash Allocation
I.-4. Financial Strategy of the “Value Creation 26 ver.2.0” ③Cash Allocation Compared to term of the previous medium-term management plan, the amount of investment has set to be more than doubled, and the return rate has also set to be doubled. Billons of JPY Yr. 2024～2026 Yr. 2024～2026 Cumulated Cu
Slide 15: Financial Strategy: Strategic Investment
I.-4. Financial Strategy of the “Value Creation 26 ver2.0” ④Strategic Investmentーwith an eye towered the 2030s and next 100 years Accelerate “expansion of business domain by leveraging tech” Early commercialization of the new business by “Technology Strategy” ⇒ Long-Term Vision “New Business Sales T
Slide 16: Strategy Investment – Technology Strategy ver.2.0
I.-4. Financial Strategy of the “Value Creation 26 ver2.0” ④Strategy Investment – Technology Strategy ver.2.0 Making technologies that are next-generation solutions Tamron's technologies are evolving from imaging to measuring Agricultural/Food products sector Logistics sector Observation / measureme
Slide 17: Management with a focus on capital costs and stock prices: Status of action
I.-5. Management with a focus on capital costs and stock prices ①Status of action By promoting management with awareness of capital costs, aimed to improve and maximize corporate value with achieving ROE over 16%, which is double of the cost of shareholder’s equity（approx.7%） 2020 2023 Vison of Valu
Slide 18: Management with a focus on capital costs and stock prices: Stock Initiatives
I.-5. Management with a focus on capital costs and stock prices ②Stock Initiatives Repurchase of Shares of Common Stock The purpose is to enhance shareholder returns, while improving capital efficiency and ensuring a flexible capital policy (1) Type of stock to be repurchased Common Stock Up to 1,00
Slide 19: ESG/Sustainability Strategy of the Value Creation26
I.-6. ESG/Sustainability Strategy of the “Value Creation26” E nvironment S ocial G overnance Reduce environmental burden through Promote human capital management, Reform the Corporate Governance carbon neutral, in-house products designing and services DE&I, and job satisfaction Structure Promote and
Slide 20: ESG/Sustainability Strategy: Environmental Vision 2050
I.-6. ESG/Sustainability Strategy ①Environmental Vision 2050 To realize a spiritual-rich society where everyone can live fulfilling lives “Environmental Vision 2050” Mission Fulfilling Lives Vision for society Decarbonized society Recycling-oriented society Society in harmony with nature 2050 Target
Slide 21: ESG/Sustainability Strategy: Promote human capital management
I.-6. ESG/Sustainability Strategy ②Promote human capital management Human Resources Strategy Pasic Policy The key to realize Tamron’s vision and management strategies is the human resource strategy aligned with the management strategies. For this purpose, we will accelerate the priority on revital
Slide 22: ESG/Sustainability Strategy: Improve Governance
I.-6. ESG/Sustainability Strategy ③Improve Governance Restore stakeholder’s trust by thoroughly implementing measures to prevent a recurrence, along with the overall improvement of the corporate governance system, including the transition to a company with an audit & supervisory committee. Establi
Slide 23: ESG/Sustainability Strategy: Progress on recurrence prevention measures
I.-6. ESG/Sustainability Strategy ④Progress on recurrence prevention measures Recurrence prevention measures Contents of the initiative Progress Review officer-related entertainment expenses, establish new ① Revise job authority details (set upper limits for entertainment expenses). ①24/2 done rules
Slide 24: II. FY2024 Financial Results
II. FY2024 Financial Results
Slide 25: II-1. FY2024 Summary
II-1. FY2024 Summary Environment Economy Market Moderate economic recovery despite some stagnation in overseas economies. The interchangeable lens camera and the interchangeable lens market grew Uncertainty continues due to geopolitical risks such as the prolonged Russia- by more than 10% in b
Slide 26: II-2. FY2024 Financial Results
II-2. FY2024 Financial Results Significant YoY sales increases in all segments: Photographic Products Segment: more than 1.2 times Surveillance & FA Lenses Segment: more than 1.2 times Mobility & Healthcare Products, Others Segment: more than 1.3 times Significant improvement in Operating
Slide 27: II-3. Factors Affecting Operating Profit Variability
II-３. Factors Affecting Operating Profit Variability Two-digit-increase in Net Sales and Operating Income even without favorable foreign exchange effects (Net sales increased by more than 15% YoY, operating income increased by approx. 30% YoY) Fiscal year ended Dec. 2024 （Millions of JPY） 【Impact of
Slide 28: FY2024 Results by Segment: Photographic Products
II-４. FY2024 Results by Segment ①Photographic Products Sales of Own-Brand products increased by approximately 10%, due to the impact of new models launched through 2023 and 2024, as well as strong performance in the domestic, Chinese, and other Asian markets. More than a 1.4 times increased YoY
Slide 29: FY2024 Results by Segment: Photographic Products (Own-Brand)
II-４. FY2024 Results by Segment ①Photographic Products (Own-Brand) Sales Composition by Base Sales Growth Rate by Base (Amount Basis) (VS 2023・JPY Rate Basis) Others 4% 32% 32% Other Asia Europe 19% 24% 17% 5% 20% 22% 23% 10% 15% 16% 14% 12% 10% 4% Own-Brand Sales Composition America Europe America
Slide 30: Photographic Products - New Models
Photographic Products - New Models Before 2023: Approximately 5 new models ⇒ Initial medium-term (2024-2026) management plan: 6 to 7 new models a year ⇒ achieved 7 new models in the first year (2024) of the plan ⇒ New medium-term (2024-2026) management plan: 10 new models a year from 2026 2022 2023
Slide 31: FY2024 Results by Segment: Surveillance & FA Lenses
II-４. FY2024 Results by Segment ②Surveillance & FA Lenses The impact of inventory optimization at customers has almost came to an end, sales of Surveillance lenses recovered from 2nd half of 2024 and shifted to an increase in sale. Sales of FA lenses continually increased approximately 1.5 times
Slide 32: FY2024 Results by Segment: Surveillance & FA Lenses
II-４. FY2024 Results by Segment ②Surveillance & FA Lenses Sales Composition by Base Sales Growth Rate by Base (VS 2023・JPY Rate Basis) Others 1% 50% Europe 7% America 4% China 8% 26% 11% 1% 11% 12% 10% 1% Europe America Japan China Others Total (4)% Surveillance & FA Lenses (20)% (13)% (14)% (13)% S
Slide 33: FY2024 Results by Segment: Mobility & Healthcare, Others
II-４. FY2024 Results by Segment ③Mobility ＆Healthcare, Others Sales of Automotive lenses increased significantly by approximately 1.3 times YoY because of strong demand mainly for sensing applications due to the popularization of Advanced Driving Assistant System (ADAS). Sales of Healthcare comp
Slide 34: III. FY2025 Financial Forecast
III. FY2025 Financial Forecast
Slide 35: III-1. FY2025 Financial Forecast
III-1. FY2025 Financial Forecast Environment Economy Market Although the economy is generally on a recovery trend, uncertainty In the interchangeable lens camera and lens market, the quantity remains high due to Russia’s prolonged invasion of Ukraine, the tense remains flat, but the total amount
Slide 36: FY2025 Forecast by Segment: Photographic Products
III-2. FY2025 Forecast by Segment ① Photographic Products Sales of Own-Brand products is expected to grow further than the market growth, due to full-year contribution of new models launched in 2024 and the impact of new models to be launched in 2025 OEM products sales is expected to be continua
Slide 37: FY2025 Forecast by Segment: Surveillance & FA Lenses
III-2. FY2025 Forecast by Segment ② Surveillance & FA Lenses Sales of Surveillance is expected to increase due to elimination of the impact of inventory optimization at customers and stable growth of the market. Sales of Camera Module is expected to increase significantly by approximately 1.2 ti
Slide 38: FY2025 Forecast by Segment: Mobility & Healthcare Products, Others
III-2. FY2025 Forecast by Segment ③Mobility ＆ Healthcare Products, Others Automotive lenses is expected continually strong growth increase by double digits in sales and expand the business to a 10-billion- yen sales scale through sustained high growth. Sales of Healthcare components in the culti
Slide 39: IV. Reference Data
IV. Reference Data
Slide 40: IV-1. Financial Summary
IV-1. Financial Summary Assets Liabilities・Net Assets （Millions of JPY） （Millions of JPY） 120,000 120,000 102,184 102,184 100,000 87,062 100,000 87,062 16,607 80,000 38,384 3,243 80,000 14,226 32,640 2,102 60,000 60,000 16,331 14,844 40,000 15,924 40,000 82,333 14,640 70,732 1,670 20,000 1,671 20,00
Slide 41: IV-2. Cash Flow
IV-2. Cash Flow （Millions of JPY） 20,000 17,644 15,000 10,027 10,910 10,000 4,881 5,000 0 (2,778) (5,000) (5,145) (6,022) (6,734) (10,000) 23/12 24/12 Operating CF Investing CF Free CF Financing CF 23/12 24/12 Operating Activities CF 10,027 17,644 Investing Activities CF (5,145) (6,734) Free CF 4,88
Slide 42: IV-3. Capital Investment, Depreciation, and R&D Expenses
IV-3. Capital Investment, Depreciation, and R&D Expenses Capital Investment R&D Expenses （Millions of JPY） （Millions of JPY） 10,000 10% 8,000 8.7% 8.6% 5,956 8.5% 8.3% 6,000 5,299 5,000 8.0% 8,000 8% 4,000 3,218 1,890 2,000 0 6,000 6% 2021 2022 2023 2024 2025(FC) Depreciation 4,000 4% 7,600 7,092 （M
Slide 43: IV-4. Quarterly Financial Results
IV-４. Quarterly Financial Results Summary of revenue and operating income by segment （Millions of JPY） 2024 1Q YoY (%) QoQ (%) 2024 2Q YoY (%) QoQ (%) 2024 3Q YoY (%) QoQ (%) 2024 4Q YoY (%) QoQ (%) Photographic Net Sales 13,944 45.0 (9.4) 19,152 38.7 37.4 17,228 21.3 (10.0) 14,510 (5.8) (15.8) Prod
Slide 44: IV-5. Cash Dividends Outlook & Key Performance Indicators
IV-5. Cash Dividends Outlook & Key Performance Indicators Cash Dividends Key Performance Indicators （JPY） （JPY） 200 Feb.-Mar. 2024 Feb.-May 2025 60% Repurchase of Repurchase of treasury stock treasury stock 400 40% (2 billion yen) (4 billion yen) 359.06 351.60 150 40.4% 39.8% 40% 33.0% 32.9% 300 30%
Slide 45: IV-6. Impact of Foreign Exchange Rate Fluctuations
IV-6. Impact of Foreign exchange Rate Fluctuations （Foreign exchange impact on previous year results） Actual 2024 Impact (Millions of JPY) 2023 2024 Net Sales Operating Income USD/JPY 140.68 151.69 3,640 400 EUR/JPY 152.17 164.09 590 500 Others - - 880 650 Total - - 5,110 1,550 Forecast 2025 Exchang
Slide 46: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for FY2024 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 presentation are b