Optex Group Company Limited · TSE:6914

Optex — Q1 2023 Earnings Presentation

33 slides from Optex's earnings presentation, May 10, 2023

  1. Slide 1: Presentation Material for the First Quarter of FY2023

    Presentation Material for the First Quarter of FY2023 (Jan.1 to Dec.31, 2023) OPTEX GROUP CO., LTD. May 10, 2023 （Tokyo Stock Exchange Prime Market:#6914） <Disclaimer> The forward-looking statements, including OPTEX CO., LTD.’s operating results, strategies, and business plans, contained in these ma

  2. Slide 2: Key Points of Q1 FY2023 Financial Results

    Key Points of Q1 FY2023 Financial Results - In the SS Business, sales from the Security Sensor and Automatic Door Sensor segments remained solid. - In the IA Business, net sales reduced 0.6% year on year, reflecting sluggish growth in the IPC and MECT segments due partly to component shortages. - Op

  3. Slide 3: Summary of Q1 FY2023 Financial Result

    Summary of Q1 FY2023 Financial Result Operating Results Q1(1-3) FY2022 Q1(1-3) FY2023 Percent Change (Unit: million yen) Results Results Change Net sales 13,901 13,822 -79 -0.6% Operating income 2,120 1,751 -369 -17.4% （Operating income Ratio） （15.3%） （12.7%） Ordinary income 2,431 1,753 -678 -27.9%

  4. Slide 4: Comparison of Financial Results of Q1 FY2023 between Segments

    Comparison of Financial Results of Q1 FY2023 between Segments Q1(1-3) FY2022 Results Q1(1-3) FY2023 Results Operating Operating Operating Results income Percent income Percent Net sales Net sales (Unit: million yen) （Operating Change （Operating Change income Ratio） income Ratio） SS 5,654 856 6,119 +

  5. Slide 5: Factors of change in Net Sales (Year-on-year)

    Factors of change in Net Sales（Year- on-year） SS IA Impact of Exchange Business Business Rate 13,901 +62 -827 +715 13,822 EMS Other Business Business -60 +31 Q1(1-3) FY2022 Consolidated Net Sales Q1(1-3) FY2023 Results -¥79 million Results © 2023 OPTEX GROUP CO., LTD. (Unit: million yen) 5

  6. Slide 6: Factors of change in Operating Income (Year-on-year)

    Factors of change in Operating Income（Year- on-year） Impact of Increase Exchange in Sales Rate Expenses Impact of Decrease +512 -325 Exchange 2,120 -404 Increase Rate in Cost Rate -204 +52 1,751 Changes in the product mix Selling, general and Gross operating income administrative Expenses Q1(1-3) FY

  7. Slide 7: Quarterly performance - Consolidated Net Sales

    Quarterly performance - Consolidated Net Sales (Year-on-year) 14,343 13,901 13,822 13,340 13,227 512 EMS/Other Business 274 499 255 546 422 231 399 150 116 1,150 1,107 11,776 11,817 1,304 782 886 IA Business(MECT) 11,299 10,974 301 449 772 271 826 270 759 3,252 3,425 3,502 IA Business(IPC) 977 3,413

  8. Slide 8: Business by Segment - SS Business (Security Sensors)

    Business by Segment - SS Business(Security Sensors) Region Q1(1-3) FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Projects for critical large-scale critical facilities increased. Japan - Sales of outdoor intrusion detectors for security 4,148 4,110 4,164 companies were firm. 4,001 3,

  9. Slide 9: Business by Segment - SS Business (Automatic Door Sensors)

    Business by Segment - SS Business(Automatic Door Sensors) Region Q1(1-3) FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Inquiries remained strong thanks to large automatic Japan door manufacturers in Japan evaluating the stable product supply capabilities highly. 1,454 1,397 1,420 1,

  10. Slide 10: Business by Segment - IA Business (FA)

    Business by Segment - IA Business(FA) Region Q1(1-3) FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Demand for investment in smartphones and PCs was weak. 2,880 Japan 2,774 - Inquiries for IO-Link related products expanded 2,697 2,710 2,631 2,608 steadily. 2,442 2,466 1,108 - Sales o

  11. Slide 11: Business by Segment - IA Business (MVL)

    Business by Segment - IA Business(MVL) Region Q1(1-3) FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Inquiries for automotive-related applications remained solid. Japan - A private show with a focus on the exhibition of 3,413 3,425 3,502 solutions was well received, contributing to t

  12. Slide 12: Business by Segment - IA Business (IPC)

    Business by Segment - IA Business(IPC) Region Q1(1-3) FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Sales slowed due to delays in product supply Japan caused by component shortages. 1,304 1,150 1,107 941 886 905 869 834 782 1,301 1,140 1,104 929 890 878 851 812 782 Industrial PCs Tr

  13. Slide 13: Business by Segment - IA Business (MECT)

    Business by Segment - IA Business(MECT) Region Q1(1-3) FY2023 Overview Quarterly Sales by Region(Unit: million yen) - Established a production system for the delivery of Delivery of secondary Japan large-scale projects for secondary battery battery manufacturing manufacturing equipment in Q3 and bey

  14. Slide 14: FY2023 Consolidated Earnings Forecasts

    FY2023 Consolidated Earnings Forecasts FY2022 FY2023 YoY (Unit: million yen) Results Forecast Net sales 54,811 60,000 +9.5% Operating income 6,303 7,500 +19.0% （Operating income Ratio） （11.5%） （12.5%） Ordinary income 7,042 7,600 +7.9% Profit attributable to owners of parent 4,752 5,300 +11.5% Net in

  15. Slide 15: Shareholder Return

    Shareholder Return +4yen Year-end dividend（¥） 40 Interim dividend（¥） +6yen 36 Acquisition of treasury shares 32.5 30 30 2019 2021 20 1.0 1.0 18 Amount billion yen billion yen 15 15 15 No. of 670,000 630,000 shares shares shares 18 20 17.5 15 15 2019 2020 2021 2022 2023(Plan) Dividend payout ratio 54

  16. Slide 16: TOPIC

    TOPIC © 2023 OPTEX GROUP CO., LTD. 16

  17. Slide 17: Conversion of a domestic vehicle guidance system manufacturer to a wholly owned subsidiary

    SS Business Conversion of a domestic vehicle guidance system manufacturer to a wholly owned subsidiary Medium-to-small size outdoor parking facilities, Medium-to-large size indoor/outdoor parking facilities, hourly parking facilities parking spaces included in facilities (coin-operated parking space

  18. Slide 18: https://www.optexgroup.co.jp /en /

    https://www.optexgroup.co.jp /en /

  19. Slide 19: Company Overview

    Company Overview © 2023 OPTEX GROUP CO., LTD. 19

  20. Slide 20: Company Overview

    Company Overview Company Name OPTEX GROUP CO., LTD. Location Shiga Otsu, Japan The OPTEX Group Established May 25, 1979 is an integrated Capital 2,798 million JPY manufacturer of sensors. Sales 54,811 million JPY To see things what eyes cannot see, that is our business ! Operating Profit 6,303 milli

  21. Slide 21: Trends in Consolidated Performance

    Trends in Consolidated Performance 74,000 2019 - U.S.-China trade tensions, 2020 economic slowdown in China - COVID-19 67,000 - Deceleration in demand for smartphone- related capital investment 60,000 54,811 2016 - Acquired CCS Inc. 45,866 10,000 40,113 (14%) 37,504 37,517 9,000 2008 34,846 (13%) -

  22. Slide 22: Company Overview _ History

    Company Overview _ History 1979 Established OPTEX CO., LTD. 1980 Developed the world's first Automatic Door Sensors with far-infrared Founding members 1985 Founded a subsidiary in California, U.S.A. 1991 Made the company's stock public. 1996 Developed Outdoor Crime Prevention Sensors 2001 Listed on

  23. Slide 23: Holding Company Structure OPTEX GROUP CO., LTD

    SS Business: Sensing Solution Business Holding Company Structure IA Business: Industrial Automation Business Holding Company OPTEX GROUP CO., LTD （Tokyo Stock Exchange Prime Market：#6914） OPTEX CO., LTD. OPTEX FA CO., LTD. CCS Inc. Sanritz Automation MITSUTEC CO., LTD. Co., Ltd. Development/manufac

  24. Slide 24: Company Overview _ Data

    Company Overview _ Data Sales by Product Category Sales by Region 3% EMS/Others IA（MECT）2% IA AMERICAs (IPC) 13% 8% SS Security Asia/ Sensors Oceania IA (MVL) 54.8 29% 14% 54.8 Japan 24% billion yen 45% billion yen (FY2022) SS (FY2022) Automatic Door Sensors SS 10% EMEA IA (FA) Others 28% 20% 4% © 2

  25. Slide 25: Company Overview _ Global Market Share

    Company Overview _ Global Market Share Global niche No.1 Security Automatic door Machine vision sensors sensors lighting 40% Outdoor Intrusion 30% Automatic door 30% LED inspection Detector sensor lighting Infrared sensor Sensor for large-scale Camera sensor critical facilities LED lighting systems

  26. Slide 26: Business Domain _ Security sensors

    Business Domain _ Security sensors Largest market share in the world for outdoor intrusion detectors Residential home・Commercial facilities Residences Offices Alarm [Security company] signal Outdoor sensors Rush to the scene Police alerted in Europe and the United States Important facilities Oil, ga

  27. Slide 27: Business Domain _ Automatic door sensors

    Business Domain _ Automatic door sensors Domestic market share: Over 50% Overseas market share: Over 20% In 1980, we applied far-infrared rays, until Over 60% share Shopping centers then mainly used for military purposes, to of convenience stores automatic door sensors. The world's first Hospitals S

  28. Slide 28: Business Domain _ Factory Automation sensors

    Business Domain _ Factory Automation sensors Provision of sensors for factory automation which help automate factory production processes and save labor Displacement sensors Image sensors Photoelectric sensors Products for the semiconductor and Products for the three-item industries Products for the

  29. Slide 29: Business Domain _ Machine Vision Lighting

    Business Domain _ Machine Vision Lighting CCS produces lighting for image inspection using LED since 1993. Lighting for image inspections* When producing something at a plant, each stage of work requires an “inspection” process. Photos or images of the inspection targets are Letter/shape imaging (Sm

  30. Slide 30: Business Domain _ Industrial Computers

    Business Domain _Industrial Computers Provision of products that are highly reliable in terms of environmental durability, noise insulation, and other factors. Our competitive edge is that we highlight long-term technical support services based on a wealth of expertise on the development of hardware

  31. Slide 31: Business Domain _ Mechatronics

    Business Domain _Mechatronics Automation Systems Image Processing Inspection Systems "Motion technology" Boasting advanced mechatronics technology to move things ✓ High-speed/high-precision filling technology × ✓ High-speed material handling technology, etc. "Vision technology" to see things → High

  32. Slide 32: ESG's Efforts

    ESG’s Efforts _ We are proactively addressing ESG issues to enhance our corporate value. See our ESG report here. Environment Social Governance Initiatives to tackle environmental issues Initiatives for social issues Corporate governance initiatives [Support for the TCFD Recommendations] Aiming to b

  33. Slide 33: https://www.optexgroup.co.jp /en /

    https://www.optexgroup.co.jp /en /

Optex Group — Q1 2023 Earnings Presentation on 6ix