Slide 1: 2nd Quarter 2024 Financial Results
2nd Quarter 2024 Financial Results August 8, 2024 Tamron Co., Ltd. (Code: 7740)
Slide 2: Contents
Contents I. 1st Half FY2024 Financial Results III. Current progress of medium-term 1. 1st Half FY2024 Summary management plan “Value Creation 26” 2. 1st Half FY2024 Financial Results 1. Positioning of the “Value Creation 26” 3. Factors Affecting Operating Income Variability 2. Outline of the “Value
Slide 3: I. 1st Half FY2024 Financial Results
Ⅰ. 1st Half FY2024 Financial Results
Slide 4: I-1. 1st Half FY2024 Summary
Ⅰ-1. 1st Half FY2024 Summary Environment Economy Market Moderate economic recovery despite some stagnation in overseas economies The interchangeable lens camera market grew by approximately 10% in Uncertainty continues due to geopolitical risks such as the prolonged situation in both volume an
Slide 5: I-2. 1st Half FY2024 Financial Results
Ⅰ-2. 1st Half FY2024 Financial Results Sales of mainstay Photographic Products Segment increased by approximately 1.4 times, and sales of Mobility & Healthcare Products, Others Segment led by Automotive Lenses, increased by approximately 1.5 times, driven by overall Net Sales Maintain gross prof
Slide 6: I-3. Factors Affecting Operating Income Variability
Ⅰ-3. Factors Affecting Operating Income Variability Both of Net sales and Operating Income increased in double digit even without favorable foreign exchange effects (Net Sales increased by approximately 25% and Operating Income Increased by approximately 50% YoY) FY2024 1H （Millions of JPY） 10,839 I
Slide 7: I-4. Results by Segment: Photographic Products
Ⅰ-4. 1st Half FY2024 Results by Segment ①Photographic Products Sales of Own-Brand products increased by double digits, even excluding favorable foreign exchange effects, due to the impact of the launch of new models last year and continued strong performance in the domestic and Chinese markets.
Slide 8: Surveillance & FA Lenses
②Surveillance & FA Lenses Sales of Surveillance lenses decreased due to continued efforts to optimize inventory levels at camera manufacturers. Sales of FA lenses continually increased driven by the expansion of the lineup. Sales of Camera Module increased due to significant contribution of ne
Slide 9: Mobility & Healthcare, Others
③ Mobility ＆Healthcare, Others Sales of Automotive lenses increased significantly by approximately 1.5 times YoY because of strong demand mainly for sensing applications due to the popularization of Advanced Driving Assistant System (ADAS). Sales of Healthcare components in the cultivation field
Slide 10: Summary of revenue and operating income by segment
Summary of revenue and operating income by segment （Millions of JPY） FY23 1Q YoY (%) FY23 2Q YoY (%) FY23 3Q YoY (%) FY23 4Q YoY (%) FY24 1Q YoY (%) FY24 2Q YoY (%) Photographic Net Sales 9,615 1.3 13,809 4.3 14,207 26.6 15,399 33.2 13,944 45.0 19,152 38.7 Products Operating Income 2,666 20.0 3,839
Slide 11: II. Financial Forecast FY2024
Ⅱ. Financial Forecast FY2024
Slide 12: II-1. Financial Forecast FY2024
Ⅱ-1. Financial Forecast FY2024 The 1st half financial results performed significantly exceed the plan, leading to double-digit upward revisions to full-year sales and profits Planned double-digit increase in Net Sales and Operating Income in the 2nd half as in the 1st half. ⇒Full-year forecast r
Slide 13: II-2. Forecast by Segment: Photographic Products
Ⅱ-2. Financial Forecast FY2024 by Segment ① Photographic Products Own-Brand products sales are expected to increase by double digits due to new model launches and sales recovery in Europe and US markets. OEM products sales in the 1st half far exceeded the plan, leading to revised sales forecast
Slide 14: Photographic Products - New Models
Photographic Products - New Models Before 2023: Approximately 5 new models ⇒ Original plan for 2024: 6 new models ⇒ Revised plan for 2024: 7 new models 2021 2022 2023 Jan June June Sep. Oc. Oc. Oct. 17-70mm F/2.8 11-20mm F/2.8 150-500mm F/5-6.7 50-400mm F/4.5-6.3 20-40mm F/2.8 17-50mm F/4 70-180mm F
Slide 15: Surveillance & FA Lenses
② Surveillance & FA Lenses Although Surveillance lenses sales for the 1st half decreased YoY due to the remaining impact inventory adjustments at customers, the Full-year sales are expected to recover to the same level as the previous year. Sales of FA lenses and camera modules are expected to s
Slide 16: Mobility & Healthcare Products, Others
③Mobility ＆ Healthcare Products, Others Planning to maintain high growth and achieve more than 30% increase in Automotive lenses sales Sales of Healthcare components are expected to progress as planned, continue to increase by double digits due to steady sales growth. Planning to doble-digit i
Slide 17: III. Current progress of medium-term management plan Value Creation 26
Ⅲ. Current progress of medium-term management plan “Value Creation 26”
Slide 18: III-1. Positioning of the Value Creation26
Ⅲ-1. Positioning of the "Value Creation26” Launch of the new medium-term plan "Value Creation26” Medium-term plan Vision23 長期ビジョン ”Value Creation26” 2018～2020 2021～2023 Long-term vision 2024～2026 Under Vision23’s achievements, we will overcome challenges, achieve high-quality leaps, and Aiming to ma
Slide 19: III-2. Outline of Value Creation26: Basic Framework
Ⅲ-2. Outline of the”Value Creation26“ ①Basic Framework “Value Creation26” Under Vision23’s achievements, we will overcome challenges, achieve high-quality leaps, and maximize corporate value through new endeavors. Business Strategy Financial Strategy Deepen the optimization of business portfolios
Slide 20: III-2. Management Numerical Targets
Ⅲ-2. Outline of ”Value Creation26“ ②Management Numerical Targets 『Value Creation26』 Achieve growth in sales and profit while maintaining high 2023 2026 profitability and efficiency. Targeting our first major milestone of 80 billion yen in sales and 15 billion yen in Actual Target operating income.
Slide 21: III-2. Status of Management Numerical Targets
Ⅲ-2. ③Status of Management Numerical Targets Target of “Value Creation26” Current Status of “Value Creation26” Achieve growth in sales and profit while maintaining high Sales and profits in the 1st half of FY24 exceeded the forecast. profitability and efficiency. Targeting our first major milest
Slide 22: III-2. Status of Management Numerical Targets by Segment
Ⅲ-2. ③Status of Management Numerical Targets by Segment FY23 FY24 FY26 Actual Forecast Medium-term plan Net Sales (Billions of JPY) Operating Income ratio Photographic Products 29.1% Net Sales ¥53.0B. ¥65.0B. ¥56.0B. 26.4% 65.0 More than 27% Own-Brand ¥32.8B. ¥37.5B. ¥37.0B. 53.0 56.0 OEM ¥20.2B. ¥2
Slide 23: III-3. Financial Strategy: Basic policy
Ⅲ-3. Financial Strategy of the “Value Creation 26” ①Basic policy Building effective management while ensuring stability Appropriate Capital Structure Enhanced Shareholder Return Sustain an ROE of appx.14% Stable shareholder returns Secure capital at twice of the cost & flexible repurchase of treasur
Slide 24: III-3. Financial Strategy: Cash Allocation
Ⅲ-3. Financial Strategy of the “Value Creation 26” ②Cash Allocation Yr. 2024～2026 Yr. 2024～2026 Yr. 2021～2023 Yr. 2024～2026 Billons of JPY Cumulated Cumulated Cumulated Cumulated R&D Inv. Approx.¥16.6B. Approx.¥20.0B.(Vs. previous medium-term1.2times） 12.0 Fundamental Tech Development： ¥12.0B. Cas
Slide 25: III-3. Financial Strategy: Technology Strategy
Ⅲ-3. Financial Strategy ③ Technology Strategy 25 ─ Copyright © Tamron Co., Ltd. All rights reserved.
Slide 26: Copyright © Tamron Co., Ltd. All rights reserved.
26 ─ Copyright © Tamron Co., Ltd. All rights reserved.
Slide 27: III-4. Management with a focus on capital costs and Stock prices
Ⅲ-4. Management with a focus on capital costs and Stock prices Status of action By promoting management with awareness of capital costs, aimed to improve and maximize corporate value with achieving ROE over 14%, which is double of the cost of shareholder’s equity（approx.7%） 2020 2023 Vison of Value
Slide 28: III-5. ESG/Sustainability Strategy of Value Creation 26
Ⅲ-5. ESG/Sustainability Strategy of the “Value Creation 26” 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 29: III-5. ESG/Sustainability Strategy
Ⅲ-５. ESG/Sustainability Strategy 29 ─ Copyright © Tamron Co., Ltd. All rights reserved.
Slide 30: III-5. Environmental Vision 2050
Ⅲ-５. 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 31: III-5. Promote human capital management
Ⅲ-５. ESG/Sustainability Strategy ②Promote human capital management Human Resources Strategy Basic 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 revitali
Slide 32: III-5. Progress on recurrence prevention measures
Ⅲ-５. ESG/Sustainability Strategy ③Progress on recurrence prevention measures Completion Recurrence prevention measures Contents of the initiative Progress (Target) Review officer-related entertainment expenses, establish new rules ① Revise job authority details (set upper limits for entertainment ex
Slide 33: IV. Reference Data
IV. Reference Data
Slide 34: IV-1. Financial Summary
IV-１. Financial Summary Assets Liabilities・Net Assets （Millions of JPY） （Millions of JPY） 120,000 120,000 97,434 97,434 100,000 100,000 87,062 87,062 82,492 82,492 16,800 80,000 80,000 14,226 2,828 36,078 13,740 2,102 32,640 2,706 32,394 60,000 60,000 19,405 14,844 13,156 40,000 77,805 40,000 70,732
Slide 35: IV-2. Capital Investment, Depreciation, and R&D Expenses
IV-２. Capital Investment, Depreciation, and R&D Expenses Capital Investment・Depreciation R&D Expenses For Rationalization/Labor saving 5 （Millions of JPY） For New bussiness/R&D 2 10,000 12% For New model For Increase development 22 capacity 10 9.7% 10% 8,000 For 2nd plant in For 8.7% Maintenance/U 8
Slide 36: IV-3. Cash Flow
IV-３. Cash Flow （Millions of JPY） 12,000 10,027 9,657 10,000 8,000 7,103 5,939 6,000 4,881 3,614 4,000 2,000 0 (2,000) (1,845) (2,324) (2,553) (4,000) (2,778) (6,000) (5,145) (4,822) (8,000) 23/6 23/12 24/6 Operating CF Investing CF Free CF Financing CF 23/6 23/12 24/6 Operating Activities CF 5,939
Slide 37: IV-4. Cash Dividends Outlook & Key Performance Indicators
IV-４. Cash Dividends Outlook & Key Performance Indicators Cash Dividends Key Performance Indicators （JPY） Feb. to Mar. 2024 （JPY） Repurchase of 150 56.3% treasury stock 60% 400 30% (2.0Bill.) 2023 50% 350 Record-high dividend for 3 25% 33.0% consecutive year 100 40% 300 32.9% 30.0% 20% 90 250 17.2%
Slide 38: IV-5. Foreign exchange impact
IV-５. Foreign exchange impact Foreign exchange impact on 1st half of FY24 Impact (Millions of JPY) FY23 1H FY24 1H Net Sales Operating Income USD/JPY 135.01 152.37 2,860 360 EUR/JPY 145.99 164.75 460 380 Others - - 660 500 Total - - 3,980 1,240 （Foreign exchange impact on previous year results） Fore
Slide 39: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for 1st Half FY2024 and future business strategies. It is not an offer or a solicitation of an offer to buy or sell securities. 2. The information provided in this material is based on the data that is obtaina