Slide 1: 2nd Quarter FY2020 Financial Results
2nd Quarter FY2020 Financial Results August 4, 2020 Tamron Co., Ltd. (Code: 7740) Tamron Co., Ltd.
Slide 2: Contents
Contents Ⅰ. FY 2020 Summary Ⅳ. Reference Data 1. 1st Half Summary 1. Financial Summary 2. Impact of COVID-19 2. Capital Investment, Depreciation, and 3. FY2020 Forecast Research & Development Expenses 3. Cash Flow Situation Ⅱ. 1st Half Financial Results 4. Cash Dividends Outlook and 1. 1st Half Fina
Slide 3: FY 2020 Summary
Ⅰ．FY 2020 Summary 3 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 4: 1st Half Summary
Ⅰ-１. 1st Half Summary 【Business Environment】 (comparison from the previous year) Economic Situation :In the digital camera market, the demand has continued to decline and reduced by half compared to the previous year, due to the impact of COVID-19 from the latter half of 1Q. • interchangeable-lens
Slide 5: Impact of COVID-19
Ⅰ-2. Impact of COVID-19 [Impact on 1st half results] Impact on sales : Approx. -8 billion yen Impact on operating income : Approx.-1 billion yen (minimized, could be worse) [Impact on the Group] ・Partially closed from May 1st to June 30th due to reduced Japan demand (After that, the suspension perio
Slide 6: FY2020 Overview
Ⅰ-3. FY2020 Overview 【Business Environment from 2 n d Half】 Economic Situation : The Digital camera market are expected to shrink continuously, although it will recover from the first half. • Mirrorless cameras are expected to increase its composition continuously. (The ratio of Mirrorless cameras
Slide 7: 1st Half Financial Results
Ⅱ．1st Half Financial Results 7 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 8: 1st Half Financial Results
Ⅱ-１. 1st Half Financial Results （millions of JPY） Actual Actual Inc / Dec 1st H FY19 1st H FY20 (a) (b) (b)-(a) % Net Sales 29,016 20,896 (8,120) 72.0% Digital camera: -7.3 billion yen Gross profit 10,421 7,972 (2,448) 76.5% Exchange rate: (% Sales) 35.9% 38.2% 2.3% － -0.4 billion yen Operating
Slide 9: 1st Half Performance Variation Factors
Ⅱ-２. 1st Half Performance Variation Factors （millions of JPY) Operating Profits 4000 △80 486 3000 2,252 940 △2,770 2000 828 1000 0 Actual Decrease of Gross profit FX rate Decrease Actual FY19 Expenses margin up, Impact of Sales FY20 etc. Amortization of Goodwill +220 Millions of JPY Total Expense re
Slide 10: 1st Half Results by Segment: Photographic Products
Ⅱ-３. 1st Half Results by Segment 1) Photographic Products （millions of JPY） Actual Actual Inc / Dec FX Impact 1st H FY19 1st H FY20 vs. 1st H FY19 (a) (b) (b)-(a) % Net Sales 20,353 13,549 (6,804) 66.6% (290) Operating 3,037 1,686 (1,351) 55.5% (110) Income (% Sales) 14.9％ 12.4％ (2.5)% － － Sales o
Slide 11: 1st Half Results by Segment: Optical Components
Ⅱ-３. 1st Half Results by Segment 2) Optical Components （millions of JPY） Actual Actual Inc / Dec FX Impact 1st H FY19 1st H FY20 vs. 1st H FY19 (a) (b) (b)-(a) % Net Sales 1,199 681 (517) 56.8% (10) Operating (35) － 13 (22) 0 Income (% Sales) 1.1％ (3.3)％ (4.4)% － － Sales of DSC/VC decreased by hal
Slide 12: 1st Half Results by Segment: Commercial / Industrial-Use Optics
Ⅱ-３. 1st Half Results by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Actual Actual Inc / Dec FX Impact 1st H FY19 1st H FY20 vs. 1st H FY19 (a) (b) (b)-(a) % Net Sales 7,463 6,665 (798) 89.3% (100) Operating 571 67 113.3% 503 30 Income (% Sales) 6.8％ 8.6％ 1.8％ － － Profits incre
Slide 13: FY2020 Financial Forecast
Ⅲ．FY2020 Financial Forecast 13 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 14: FY2020 Financial Forecast
Ⅲ-１. FY2020 Financial Forecast （millions of JPY） Net Sales 1H 2H Actual Forecast Inc / Dec 80,000 FY19 FY20 (a) (b) (b)-(a) % 60,000 Net Sales 63,285 50,000 (13,285) 79.0% 33,243 34,268 40,000 29,103 Operating 2,800 (4,182) 40.1% 6,982 Income 20,000 28,572 29,016 (% Sales) 11.0% 5.6% (5.4)% － 20,896
Slide 15: FY2020 Forecast by Segment: Photographic Products
Ⅲ-２. FY2020 Forecast by Segment 1) Photographic Products （millions of JPY） Actual Revised Forecast Inc / Dec FY19 FY20 (a) (b) (b)-(a) % Net Sales 46,175 34,200 (11,975) 74.1% Operating 8,635 4,700 (3,935) 54.4% Income (% Sales) 18.7％ 13.7％ (5.0)% － Although sales decrease due to the shrinking mar
Slide 16: Photographic Products - New Models
Photographic Products - New Models To be Launched in Category Launched in 2018 Launched in 2019 2020 Launched Launched Launched Single in Dec. in Dec. 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 Jul. Zoom 17-28mm F/2.8 RXD (A046) Pla
Slide 17: FY2020 Forecast by Segment: Optical Components
Ⅲ-２. FY2020 Forecast by Segment 2) Optical Components （millions of JPY） Actual Revised Forecast Inc / Dec FY19 FY20 (a) (b) (b)-(a) % Net Sales 2,739 1,300 (1,439) 47.5% Operating 137 (100) (237) － Income (% Sales) 5.0％ (7.7)％ (12.7)% － Sales for both DSC/VC and drones are expected to decrease by
Slide 18: FY2020 Forecast by Segment: Commercial / Industrial-Use Optics
Ⅲ-２. FY2020 Forecast by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Actual Revised Forecast Inc / Dec FY19 FY20 (a) (b) (b)-(a) % Net Sales 14,371 14,500 129 100.9% Operating 994 900 (94) 90.5% Income (% Sales) 6.9％ 6.2％ (0.7)% － Surveillance/FA and Lenses for automotive are ex
Slide 19: Activities for ESG: Environmental Vision 2050
Ⅲ-3. Activities for ESG Environmental Vision 2050 19 Copyright © Tamron Co., Ltd. All rights reserved.
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 Dec 31, Jun 30, Inventries Turnover Change （Month） 2019 2020 15,000 2.8 3.0 (b)-(a) (a) (b) 2.5 12,000 2.0 Cash & Deposits 28,384 19,476 (8,907) 2.0 9,000 1.6 1.5 Notes & Accounts 12,907 8,665 (4,241) 6,000 Receivable 1.0 9,450 9,388 9,658 Invento
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 /Net Sales) （millions of JPY） （millions of JPY） Capital Ivestment Depreciation 6,000 6,000 12.0% 5,263 5,000 5,000 4,700 10.0% 4,373 4,100
Slide 23: Cash Flow Situation
Ⅳ-３. Cash Flow Situation （millions of JPY） 1st H FY19 FY19 1st H FY20 12,000 10,925 8,062 Operating CF 8,000 Investing CF 5,030 Free CF 3,806 3,206 4,000 Financing CF 0 (1,223) (831) (1,123) (1,923) (4,000) (2,863) (8,000) (7,890) (12,000) (11,096) 1st H FY19 FY19 1st H FY20 Cash Flow from Operating
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% 250 11.0% 12.0% 100 100.0% Year-End Dividend EPS Interm Dividend ROE 9.1% 10.0% Dividend Payout Ratio Highest normal 200 ROA 80 Dividends ever 80.0% 10.1% Highest normal Dividends eve
Slide 25: Impact of Foreign Exchange Rate Fluctuations
Ⅳ-５. Impact of Foreign Exchange Rate Fluctuations Actual 1st Half FY2020 (JPY) （millions of JPY） Exchange Rate Impact Actual Actual Operating Net Sales 1st H FY19 1st H FY20 Income USD 110.07 108.24 (160) 0 EUR 124.35 119.36 (130) (100) Others - - (110) 20 Total - - (400) (80) (Impact on previous ye
Slide 26: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for 1st Half of FY2020 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 presen