Slide 1: FY2018 Financial Results
FY2018 Financial Results February 12, 2019 Tamron Co., Ltd. (Code: 7740) Tamron Co., Ltd.
Slide 2: Contents
Contents Ⅰ. FY2018 Summary and Mid-Term Ⅳ. Reference Data Management Plan 1. Financial Summary 1. FY2018 Summary 2. Capital Investment, Depreciation, & 2. Mid-Term Management Plan Research & Development Expenses 1) Financial Target (Consolidated) 3. Cash Flow Situation 4. Cash Dividends Outlook & 2)
Slide 3: FY2018 Summary and Mid-Term Management Plan
Ⅰ．FY2018 Summary and Mid-Term Management Plan 3 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 4: FY2018 Summary
Ⅰ-１. FY2018 Summary 【Business Environment】 Market Situation: • Digital SLR cameras decreased by 8% from the previous year: Digital SLR down by 13%; whereas, Mirrorless up by 1% from the previous year. • Interchangeable lenses decreased by 6% from the previous year: 【Operating Income by Semiannual
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 Actual Target Original Actual Forecast FY17 FY20 Forecast FY18 FY18 FY19 Sales ¥60.5B. ¥7.2B. Sales ¥6.3B. ¥6.18B. ¥6.5B. Operating ¥4.2B. ¥6.6B. Income Operating ¥4.
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 FY18> 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 cameras: FY17:80％ ⇒ FY20:60％ level ・Highest priority on New Business category: FY20:10billion yen （billions of JPY） Actual Actual Forecast Target Segment Items Category FY17 FY18 FY19 FY20 Own-Brand Lense
Slide 8: FY2018 Financial Results
Ⅱ．FY2018 Financial Results 8 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 9: FY2018 Financial Results
II-1. FY2018 Financial Results （millions of JPY） Actual Revised Actual Forecast Inc / Dec Inc / Dec FY17 FY18(18/7/24) FY18 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 60,496 63,000 61,815 1,319 102.2% (1,184) 98.1% Gross profit 20,596 － 21,905 1,308 106.4% － － (% Sales) 34.0% － 35.4% 1.4% － － － Opera
Slide 10: FY2018 Performance Variation Factors
II-2. FY2018 Performance Variation Factors （millions of JPY） 6000 5,424 588 5000 4,246 140 120 570 4000 3000 2000 1000 0 Actual Increase FX rate Reduction Increase of Actual FY17 of Sales Impact of Gross FY18 Expenses profit margin 10 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 11: FY2018 Results by Segment: Photographic Products
II-3. FY2018 Results by Segment 1) Photographic Products （millions of JPY） Actual Revised Actual Forecast Inc / Dec FX Impact Inc / Dec FY17 FY18(18/7/24) FY18 vs. FY17 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 45,292 47,600 45,640 347 100.8% (170) (1,959) 95.9% Operating 5,818 7,350 7,113 1,295 122
Slide 12: Photographic Products - New Models
Photographic Products - New Models Launched Launched Category Launched in 2017 in 1st Half, 2018 in 2nd Half, 2018 Launched in Sep. Launched Wide in Mar. Zoom 10-24mm VC HLD (B023) 17-35mm SP 15-30mm F/2.8 F/2.8-4 OSD (A037) VC USD G2 (A041) Launched Standard in Aug. Zoom SP 24-70mm F/2.8 VC USD G2
Slide 13: FY2018 Results by Segment: Optical Components
II-3. FY2018 Results by Segment 2) Optical Components （millions of JPY） Actual Revised Actual Forecast Inc / Dec FX Impact Inc / Dec FY17 FY18(18/7/24) FY18 vs. FY17 (a) (c) (b) (c)-(a) % (c)-(b) % Net Sales 3,375 3,100 3,436 61 101.8% (40) 336 110.9% Operating （24） 50 80 105 － % (20) 30 162.0% Inco
Slide 14: FY2018 Results by Segment: Commercial / Industrial-Use Optics
II-3. FY2018 Results by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Revised Actual Forecast Actual Inc / Dec FX Impact Inc / Dec FY17 FY18(18/7/24) FY18 vs. FY17 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 11,827 12,300 12,738 911 107.7% (140) 438 103.6% Operating 827 350 813 (14)
Slide 15: FY2019 Forecast
Ⅲ． FY2019 Forecast 15 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 16: FY2019 Financial Forecast
Ⅲ-1. FY2019 Financial Forecast （millions of JPY） 1st H Net Sales 2nd H Actual Forecast Inc / Dec 80,000 FY18 FY19 (a) (b) (b)-(a) % 60,000 33,243 36,400 Net Sales 61,815 65,000 3,184 105.2% 40,000 33,583 Operating 5,900 475 108.8% 5,424 20,000 Income 28,572 28,600 26,913 (% Sales) 8.8% 9.1% 0.3% － 0
Slide 17: FY2019 Forecast by Segment: Photographic Products
Ⅲ-2. FY2019 Forecast by Segment 1) Photographic Products （millions of JPY） Actual Forecast Inc / Dec FY18 FY19 (a) (b) (b)-(a) % Net Sales 45,640 46,500 859 101.9% Operating 7,113 7,150 36 100.5% Income (% Sales) 15.6％ 15.4％ (0.2)% － Despite the little increase in OEM models sales, expecting incre
Slide 18: FY2019 Forecast by Segment: Optical Components
Ⅲ-2. FY2019 Forecast by Segment 2) Optical Components （millions of JPY） Actual Forecast Inc / Dec FY18 FY19 (a) (b) (b)-(a) % Net Sales 3,436 2,900 (536) 84.4% Operating 80 150 69 185.2% Income (% Sales) 2.4％ 5.2% 2.8% － Despite the strong sales in Drone Products, the total sales of the Optical Co
Slide 19: FY2019 Forecast by Segment: Commercial / Industrial-Use Optics
Ⅲ -2. FY2018 Forecast by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Actual Forecast Inc / Dec FY18 FY19 (a) (b) (b)-(a) % Net Sales 12,738 15,600 2,861 122.5% Operating 813 1,400 586 172.2% Income (% Sales) 6.4％ 9.0% 2.6% － Sales is expected to increase by 30% because of the e
Slide 20: Reference Data
Ⅳ．Reference Data 20 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 21: Financial Summary
Ⅳ-１. Financial Summary （millions of JPY） Inventories Inventries Turnover Dec 31, Dec 31, （Month） Change 2017 2018 15,000 2.1 2.5 (b)-(a) (a) (b) 1.9 2.0 12,000 2.0 Cash & Deposits 19,431 22,438 3,006 9,000 1.5 Notes & Accounts 14,061 13,407 (654) 6,000 1.0 Receivable 10,100 10,473 10,811 3,000 0.5 I
Slide 22: 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 4,000 5,000 10.0% 3,654 3,562 4,450 4,373 3,365 4,052 4,111
Slide 23: Cash Flow Situation
Ⅳ-３. Cash Flow Situation （millions of JPY） FY17 FY18 7,661 8,000 7,523 Operating CF 6,000 5,487 5,321 Investing CF Free CF 4,000 Financing CF 2,000 0 △ 2,000 (1,861) (2,174) (2,351) (2,202) △ 4,000 FY17 FY18 Cash Flow from Operating Activities 7,661 7,523 Cash Flow from Investing Activities (2,174)
Slide 24: Cash Dividends Outlook & Key Performance Indicators
Ⅳ-４. Cash Dividends Outlook & Key Performance Indicators （JPY） Cash Dividends Key Performance Indicators （JPY） 96.2% 200 10.0% 100 100.0% 9.1% 8.9% Anniversary dividends EPS Year-End Dividend ROE Interm Dividend 7.6% 8.0% 80 80.0% ROA 8.6% Dividend Payout Ratio 150 6.6% 8.0% 7.9% 6.0% 60 60.0% 5 45.
Slide 25: Impact of Foreign Exchange Rate Fluctuations
Ⅳ-５. Impact of Foreign Exchange Rate Fluctuations FY2018 (JPY) （millions of JPY） Exchange Rate Impact Actual Actual Operating Net Sales FY17 FY18 Income USD 112.17 110.45 (550) (20) EUR 126.73 130.38 260 220 Others - - (60) (60) Total - - (350) 140 (Impact on FY2017 Actual performance) Forecast FY20
Slide 26: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for FY2018 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