Slide 1: Summary of Consolidated Financial Results for Second Quarter of F.Y. 2017
Summary of Consolidated Financial Results for Second Quarter of F.Y. 2017 (Jan.1 to Jun.30, 2017) OPTEX GROUP CO., LTD. August 4, 2017 Copyright (C) 2017 OPTEX GROUP CO., LTD.
Slide 2: Overview of Consolidated Financial Results for First Half
Overview of Consolidated Financial Results for First Half Copyright (C) 2017 OPTEX GROUP CO., LTD. 2
Slide 3: Summary of Financial Results for First Half of F.Y. 2017
Summary of Financial Results for First Half of F.Y. 2017 Compared with start- Year-to-year comparison of-year plan* Operating Results *Announcement of Revisions to 2Q (Unit: million yen) F.Y. 2016 2Q F.Y. 2017 2Q F.Y. 2017 （Cumulative） (Cumulative) Change 2Q (Cumulative) Change Cumulative Consolidat
Slide 4: Quarterly performance - Consolidated Net Sales (Year-on-year)
Quarterly performance - Consolidated Net Sales (Year- on-year) 9,891 9,369 Increase in net sales as strong growth of MVL and 9,145 FA businesses continued 8,133 3,104 2,179 2,343 6,584 6,419 1,919 from 1Q 1,990 1,379 1,662 1,686 1,529 1,579 ・Conversion of newly consolidated subsidiary(MVL Bussiness)
Slide 5: Factors of change in Operating Income (Year-on-year)
Factors of change in Operating Income (Year- on-year) Changes in personnel expense, etc. -90 Factor 2 Factor 6 Factor 4 Impact of COS% Down Exchange Rate +94 +88 Factor 3 Impact of Exchange Rate Factor 5 -284 Increase in selling, general and 2,724 Factor 1 administrative expenses accompanying 1,497
Slide 6: Business by Segment - SS Business (Security Sensors)
Business by Segment - SS Business(Security Sensors) Region F.Y. 2017 2Q Cumulative Results Sales of outdoor intrusion detectors for security companies were weak, and sales Japan dipped year-on-year. Sales edged lower year-on-year because of a lag in orders for outdoor intrusion AMERICAs detectors fo
Slide 7: Business by Segment - SS Business (Automatic Door Sensors)
Business by Segment - SS Business(Automatic Door Sensors) Region F.Y. 2017 2Q Cumulative Results Sales of automatic door sensors and sheet shutter sensors for plants were robust Japan and increased year-on-year. Sales of automatic door sensors to leading customers in North America were lower AMERICA
Slide 8: Business by Segment - Factory Automation Business
Business by Segment - Factory Automation Business Region F.Y. 2017 2Q Cumulative Results Sales of displacement sensors, vision sensors, and LED lighting for image Japan inspections in the semiconductor, rechargeable battery, flat-panel display, electronic components, and food industries were all str
Slide 9: Business by Segment - Machine Vision Lighting Business
Business by Segment - Machine Vision Lighting Business Region F.Y. 2017 2Q Cumulative Results Efforts to further expand solutions and strengthen proposals were successful, and Japan sales increased steadily. Increased sales steadily through large-scale orders for smartphones and ongoing AMERICAs pro
Slide 10: Full-year Consolidated Earnings Projection
Full-year Consolidated Earnings Projection Copyright (C) 2017 OPTEX GROUP CO., LTD. 10
Slide 11: F.Y. 2017 Full-year Consolidated Earnings Projection
F.Y. 2017 Full-year Consolidated Earnings Projection *Announcement of Revisions to the Full-year Operating Results F.Y. 2017 start- F.Y. 2017 Change F.Y. 2016 Consolidated Earnings Projection (6/20) (Unit: million yen) of-year plan Revised plan* Percent Change Results Reflects the following factors
Slide 12: Upward revision from beginning of period plan
F.Y. 2017 Full-year Consolidated Earnings Projection Upward revision from beginning of period plan 36,300 18,997 18,240 18,060 13,928 13,865 13,161 13,003 12,454 12,517 11,128 2,450 1,803 1,750 1,178 1,632 1,529 2,450 1,380 1,121 1,114 1,800 994 1,620 1,675 1,779 1,547 1,560 1,367 1,423 1,497 1,261
Slide 13: Dividends Projection: Increase interim dividend by 5 yen
Dividends Projection Increase interim dividend by 5 yen Dividends and dividend payout ratio ROE/Shareholders’ equity ratio (Unit: yen) (Unit: %) （Unit：％） 100 Year-end dividend 50 ROE Shareholders's equity ratio 50 Dividend increases 45 78.0 76.3 75.9 80 Interim dividend 40 40 Dividend payout ratio 6
Slide 14: Medium-Term Business Plan
Medium-Term Business Plan Copyright (C) 2017 OPTEX GROUP CO., LTD. 14
Slide 15: Expand business using both gears
Medium-Term Business Plan 2019 Sales :50 billion JPY 2017 Operating Profit：7.5 billion JPY Sales :36.3 billion JPY Operating Profit：4.2 billion JPY Expand business using both gears ①Security business Image verification (combine with security cameras) Security business Factory Automation ②Factory Aut
Slide 16: Surveillance camera demand upward trend
SS Business(Security Sensors) _Image verification (combine with security cameras) The increase in worldwide surveillance camera demand is driving the security market growth. Worldwide security camera market trend (Units: 1,000 units) Source：IMS Research Surveillance camera demand ▼ 26,000 18,900 12,
Slide 17: Introduce new products, and strengthen business in North America
SS Business(Security Sensors) _Image verification (combine with security cameras) Introduce new products, and strengthen business in North America New products: Sensor-equipped cameras Market environment July 2017 Growing demand for visual verification Introduce new products through tie-up with usin
Slide 18: Plan to establish new subsidiary to strengthen North America business
Factory Automation business Plan to establish new subsidiary to strengthen North America business Strengthen sales of displacement sensors Market environment Increasing demand for FA sensors 2017 Plan to establishment U.S. sales subsidiary ・Growing IT-related demand ・Rising capital investment demand
Slide 19: Establish a new subsidiary and strengthen business in China
Machine Vision Lighting Business Establish a new subsidiary and strengthen business in China New “CCS-China” brand Market environment Growing market for LED lighting for image July 2017 inspections Established CCS China Inc. ・Automation of inspection processes accelerating because of sharply rising
Slide 20: Synergy between OPTEX FA CO., LTD. and CCS Inc.
Synergy between OPTEX FA CO., LTD. and CCS Inc. “Utilize CCS’s sales channels to expand the domestic FA Business” Three product industries Electrical, electronics, and (Foods, pharmaceuticals, New customer semiconductor industries cosmetics) acquisition Automobile industry Sensors for factory automa
Slide 21: Synergy between OPTEX FA CO., LTD. and CCS Inc. - overseas MVL
Synergy between OPTEX FA CO., LTD. and CCS Inc. “Utilize OPTEX Group bases in each country to expand overseas MVL Business” [Russia] [Canada] [U.K.] [Poland] [Korea] OPTEXGROUP CO.,LTD. [America] [Netherlands] [Belgium] [France] [China] CCS Korea Testing Room [Thailand] Set up within OPTEX KOREA CO.
Slide 22: Medium-Term Action Plan
Medium-Term Action Plan 「Optex Group will be full of venture spirits」 ① Create an organizational environment that enables each operating company to concentrate on its business ② Building our group team spirit ③ Creating new group synergy Copyright (C) 2017 OPTEX GROUP CO., LTD. 22
Slide 23: Optex Group's Management Indicator
Optex Group's Management Indicator Operating Sales growth profit ROE more than more than 15% up 10% 15% Copyright (C) 2017 OPTEX GROUP CO., LTD. 23
Slide 24: M&A Holding Company
M&A Holding Company Looking forward to the creation of new operating companies, OPTEX GROUP CO., LTD together with growth of the entire Group, through our （Tokyo Stock Exchange Market M&A strategy in security, factory automation sensors 1st Section：#6914） New business unit New business unit New busi
Slide 25: Optex Group's Performance targets
Optex Group‘s Performance targets Our goal: Consolidated net sales of ¥50 billion and operating profit of ¥7.5 billion in 2019 50,000 36,300 31,027 7,500 27,793 25,678 23,582 22,167 20,916 20,699 4,076 18,502 4,250 17,395 2,628 3,043 15,124 3,222 3,086 2,489 1,680 2,558 3,854 1,761 1,830 2,108 4,200
Slide 26: Supporting documentation
Supporting documentation Copyright (C) 2017 OPTEX GROUP CO., LTD. 26
Slide 27: Quarterly performance - Consolidated Profit (Year-on-year)
Quarterly performance - Consolidated Profit (Year- on-year) Operating income Ordinary income Profit attributable to owners of parent +147.6% +82.0% 818 840 765 1,178 ４Q ４Q ４Q +160.0% ３Q 711 1,392 707 1,467 ３Q 753 ３Q 558 ２Q ２Q ２Q 787 648 589 １Q 1,004 １Q １Q 718 435 608 393 448 486 1,332 1,309 238 1,04
Slide 28: Quarterly performance - Consolidated SG&A expenses (Year-on-year)
Quarterly performance - Consolidated Selling, general and administrative expenses (Year- on-year) Increase in various Others その他販管費 R&D 研究開発費 Expense expenses accompanying addition of newly consolidated 3,740 subsidiary 3,197 3,266 3,043 Year- on-year 2,359 2,515 2,366 2,389 2,319 2,443 Selling, gen
Slide 29: Results by Segment and Region
Results by Segment and Region (Unit: million yen) Segment・Region F.Y. 2016 First Half Results F.Y. 2017 First Half Results Change Percent Change SS Business(Security Sensors) 6,586 6,803 217 3.3％ Japan 1,174 1,142 -32 -2.7％ AMERICAs 1,264 1,200 -64 -5.1% EMEA 3,567 3,606 39 1.1% Asia and Oceania 581
Slide 30: Company Overview
Company Overview Company Name OPTEX GROUP CO., LTD. Location Shiga Otsu, Japan Established May 25, 1979 Capital 2,798 million JPY The OPTEX Group Sales 31,027 million JPY Operating Profit 3,015 million JPY is an integrated Fiscal Year-End December manufacturer of Stock Code Tokyo Stock Exchange 6914
Slide 31: Sales by Product Category / Sales by Region
Company Overview_Data Sales by Product Category Sales by Region Others Asia/Oceania 11% 13% Automatic Security Door Sensors Japan Sensors AMERICAs 13% 31 40% 13% 31 41% LED Lighting billion yen billion yen for Image (2016) (2016) Inspection 16% Factory EMEA Automation 33% 20% EMEA : Europe, the Midd
Slide 32: Company Overview: Global Market Share
Company Overview Global Market Share Security sensors Security sensors 40% 50% Intrusion detector CCTV lighting for outdoor Global niche Automatic door sensors Machine vision lighting No.1 30% 30% Automatic door LED lighting sensor for inspection Copyright (C) 2017 OPTEX GROUP CO., LTD. 32
Slide 33: www.optex.co.jp /e /group /
www.optex.co.jp /e /group /