Slide 1: FY2019 Financial Results
FY2019 Financial Results February 7, 2020 Tamron Co., Ltd. (Code: 7740) Tamron Co., Ltd.
Slide 2: Contents
Contents Ⅰ. FY2019 Summary and Mid-Term Ⅳ. Reference Data Management Plan 1. Financial Summary 1. FY2019 Summary 2. Capital Investment, Depreciation, & 2. Mid-Term Management Plan Research & Development Expenses 1) Financial Target (Consolidated) 3. Cash Flow Situation 2) Target by Segment 4. Cash D
Slide 3: FY2019 Summary and Mid-Term Management Plan
Ⅰ．FY2019 Summary and Mid-Term Management Plan 3 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 4: FY2019 Summary
Ⅰ-１. FY2019 Summary 【Business Environment】 Market Situation: • Digital SLR cameras decreased by 20% from the previous year: Digital SLR down by 41%; whereas, Mirrorless up by 4% from the previous year. 【Operating Income by Semiannual 】 • Interchangeable lenses decreased by 12% from the previous ye
Slide 5: Mid-Term Management Plan: Financial Target (Consolidated)
Ⅰ-２. Mid-Term Management Plan 1) Financial Target (Consolidated) Mid-Term Management Plan (Announced in Feb., 2018) 1st year 2nd year 3rd year Original Actual Target Actual Actual Forecast Forecast FY17 FY20 FY18 FY19 FY20 FY19 Sales ¥60.5B. ¥72.0B. ¥61.8B. ¥65.0B. ¥63.3B. ¥65.5B. Operating ¥4.2B. ¥
Slide 6: Mid-Term Management Plan: Target by Segment
Ⅰ-２. Mid-Term Management Plan 2) Target by Segment ＜Management Policy by Segment＞ <Results in FY19> Operating margin in Without the assumption of market growth, Digital Camera profitability improvement is the highest Photographic Products （Matured Market） priority.（Higher gross profit margin of own-
Slide 7: Mid-Term Management Plan: Sales Target by Segment
Ⅰ-２. Mid-Term Management Plan 2)Sales Target by Segment ・The sales composition ratio of digital camera related products: FY17:80％ ⇒ FY20:70％ level ・Surveillance/FA : FY17 less than 10B JPY ⇒ FY20:15B JPY, 150% increase （billions of JPY） Actual Actual Actual Forecast Original Segment Items Category T
Slide 8: FY2019 Financial Results
Ⅱ．FY2019 Financial Results 8 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 9: FY2019 Financial Results
II-1. FY2019 Financial Results （millions of JPY） Actual Revised Actual Forecast Inc / Dec Inc / Dec FY18 FY19(19/10/31) FY19 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 61,815 63,000 63,285 1,469 102.4% 285 100.5% Gross profit 21,905 － 24,229 2,323 110.6% － － (% Sales) 35.4% － 38.3% 2.9% － － － Operati
Slide 10: FY2019 Performance Variation Factors
II-2. FY2019 Performance Variation Factors Research & Development Expenses 890 M JPY Advertising and Sales Promotion Expenses (260) M JPY 10 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 11: FY2019 Results by Segment: Photographic Products
II-3. FY2019 Results by Segment 1) Photographic Products （millions of JPY） Actual Revised Actual Forecast Inc / Dec FX Impact Inc / Dec FY18 FY19(19/10/31) FY19 vs. FY18 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 45,640 45,900 46,175 535 101.2% (1,180) 275 100.6% Operating 7,113 8,100 8,635 1,521 121
Slide 12: Photographic Products - New Models
Photographic Products - New Models Category Launched in 2018 Launched in 2019 Launched in Dec. Single Fixed 24mm F/2.8 35mm F/2.8 OSD M1:2 (F051) OSD M1:2 (F053) Launched Wide in Jul. Zoom Mirrorless 17-28mm F/2.8 RXD (A046) Launched Standard in May. Zoom 28-75mm F/2.8 RXD (A036) Tele Zoom Launched
Slide 13: FY2019 Results by Segment: Optical Components
II-3. FY2019 Results by Segment 2) Optical Components （millions of JPY） Actual Revised Actual Forecast Inc / Dec FX Impact Inc / Dec FY18 FY19(19/10/31) FY19 vs. FY18 (a) (c) (b) (c)-(a) % (c)-(b) % Net Sales 3,436 2,500 2,739 (697) 79.7% (50) 239 109.6% Operating 80 100 137 56 169.3% 10 37 137.2% I
Slide 14: FY2019 Results by Segment: Commercial / Industrial-Use Optics
II-3. FY2019 Results by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Revised Actual Forecast Actual Inc / Dec FX Impact Inc / Dec FY18 FY19(19/10/31) FY19 vs. FY18 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 12,738 14,600 14,370 1,632 112.8% (240) (229) 98.4% Operating 813 1,000 994
Slide 15: FY2020 Forecast
Ⅲ． FY2020 Forecast 15 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 16: FY2020 Financial Forecast
Ⅲ-1. FY2020 Financial Forecast （millions of JPY） 1st H Net Sales 2nd H Actual Forecast Inc / Dec 80,000 FY19 FY20 (a) (b) (b)-(a) % 60,000 33,243 34,268 36,000 Net Sales 63,285 65,500 2,214 103.5% 40,000 Operating 7,000 17 100.2% 6,982 20,000 Income 28,572 29,016 29,500 (% Sales) 11.0% 10.7% (0.3)%
Slide 17: FY2020 Forecast by Segment: Photographic Products
Ⅲ-2. FY2020 Forecast by Segment 1) Photographic Products （millions of JPY） Actual Forecast Inc / Dec FY19 FY20 (a) (b) (b)-(a) % Net Sales 46,175 45,200 (975) 97.9% Operating 8,635 7,900 (735) 91.5% Income (% Sales) 18.7％ 17.5％ (1.2)% － The sales and profits are expected to decline due to the cont
Slide 18: Photographic Products - New Models
Photographic Products - New Models To be Launched Category Launched in 2018 Launched in 2019 in 2020 Launched in Dec. Launched Single in Jan, Fixed 24mm F/2.8 35mm F/2.8 20mm F/2.8 OSD M1:2 (F051) OSD M1:2 (F053) OSD M1:2（F050） Launched Wide In 2020, 5 models in Jul. Zoom are planned. Mirrorless 17-
Slide 19: FY2020 Forecast by Segment: Optical Components
Ⅲ-2. FY2020 Forecast by Segment 2) Optical Components （millions of JPY） Actual Forecast Inc / Dec FY19 FY20 (a) (b) (b)-(a) % Net Sales 2,739 1,700 (1,039) 62.1% Operating 137 100 (37) 72.9% Income (% Sales) 5.0％ 5.9% 0.9% － The sales of DSC/VC is expected to decrease due to the larger decline of
Slide 20: FY2020 Forecast by Segment: Commercial / Industrial-Use Optics
Ⅲ-2. FY2020 Forecast by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Actual Forecast Inc / Dec FY19 FY20 (a) (b) (b)-(a) % Net Sales 14,370 18,600 4,229 129.4% Operating 994 2,000 1,005 201.1% Income (% Sales) 6.9％ 10.8% 3.9% － Sales of Surveillance and FA Lens are expected to i
Slide 21: Activities for ESG
Ⅲ-3. Activities for ESG Risks and Chances Activities Output for 2020 Outcome Purpose Social Issues Management strategy Creating economic ・High functionality on Photographic and value Mid-term Management Plan for FY20 Video Lens Sales smartphone Sales ・City crime Approach for Transformation ・Increase
Slide 22: Reference Data
Ⅳ．Reference Data 22 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 23: Financial Summary
Ⅳ-１. Financial Summary （millions of JPY） Inventories Inventries Turnover Dec 31, Dec 31, （Month） Change 2018 2019 15,000 2.5 (b)-(a) 1.9 2.0 (a) (b) 12,000 2.0 22,438 28,384 5,946 1.6 Cash & Deposits 9,000 1.5 Notes & Accounts 13,407 12,907 (500) 6,000 1.0 Receivable 10,473 10,811 9,388 3,000 0.5 In
Slide 24: Capital Investment, Depreciation, & Research & Development Expenses
Ⅳ-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 6,000 12.0% 5,263 5,400 4,400 5,000 10.0% 4,000 4,373
Slide 25: Cash Flow Situation
Ⅳ-３. Cash Flow Situation （millions of JPY） FY18 FY19 12,000 10,925 Operating CF 10,000 8,062 Investing CF 7,523 8,000 Free CF Financing CF 6,000 5,321 4,000 2,000 0 △ 2,000 (2,202) (1,861) (1,923) △ 4,000 (2,863) FY18 FY19 Cash Flow from Operating Activities 7,523 10,925 Cash Flow from Investing Act
Slide 26: Cash Dividends Outlook & Key Performance Indicators
Ⅳ-４. Cash Dividends Outlook & Key Performance Indicators （JPY） Cash Dividends Key Performance Indicators （JPY） 96.2% Year-End Dividend 250 11.0% 12.0% 100 100.0% Interm Dividend EPS 9.9% Dividend Payout Ratio ROE 9.1% 10.0% Highest annual 200 ROA 80 dividends ever 80.0% 10.1% Highest normal dividend
Slide 27: Impact of Foreign Exchange Rate Fluctuations
Ⅳ-５. Impact of Foreign Exchange Rate Fluctuations FY2019 (JPY) （millions of JPY） Exchange Rate Impact Actual Actual Operating Net Sales FY18 FY19 Income USD 110.45 109.04 (590) (90) EUR 130.38 122.06 (610) (510) Others - - (270) (60) Total - - (1,470) (660) (Impact on FY2018 Actual performance) Fore
Slide 28: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for FY2019 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