Slide 1: 2nd Quarter FY2017 Financial Results
2nd Quarter FY2017 Financial Results August 7, 2017 Tamron Co., Ltd. (Code: 7740) Tamron Co., Ltd.
Slide 2: Contents
Contents Ⅰ. 2nd Quarter FY2017 Financial Results Ⅲ. Reference Data 1. 1st Half FY2017 Summary P.4 1. Financial Summary P.21 2. 1st Half FY2017 Financial Results P.5 2. Capital Investment, Depreciation, & P.22 3. 1st Half FY2017 Performance Variation Factors P.6 Research & Development Expenses 4. 1st
Slide 3: 2nd Quarter FY2017 Financial Results
2nd Quarter FY2017 Financial Results 3 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 4: 1st Half FY2017 Summary
Ⅰ-１. 1st Half FY2017 Summary 【Business Environment】 Economic Situation ⇒ Although the digital camera market resulted in a positive growth compared to the previous year, it shows a downward trend. • Digital SLR cameras increased by 12% compared to the previous year (SLR: 5% down from the previous y
Slide 5: 1st Half FY2017 Financial Results
Ⅰ-２. 1st Half FY2017 Financial Results （millions of JPY） Original Actual Actual Inc / Dec Inc / Dec Forecast 1st H FY16 1st H FY17 1st H FY17 (a) (c) (c)-(a) % (c)-(b) % (b) Net Sales 30,499 28,500 26,912 (3,586) 88.2% (1,587) 94,4% Operating 1,177 (200) 85.5% 377 147.2% 1,377 800 Income (% Sales) 4
Slide 6: 1st Half FY2017 Performance Variation Factors
Ⅰ-３. 1st Half FY2017 Performance Variation Factors （millions of YPY） 1,600 1,377 1,400 0 1,200 1,177 220 1,000 300 800 800 700 △1,170 490 600 △950 400 260 327 200 0 Actual FX rate Decrease Others Reduction of Cost Actual Reduction of Others Decrease FX rate Forecast 1st H FY16 Impact of Sales Expens
Slide 7: 1st Half FY2017 Results by Segment: Photographic Products
Ⅰ-４. 1st Half FY2017 Results by Segment 1) Photographic Products （millions of JPY） Original Actual Actual Inc / Dec FX Impact Inc / Dec Forecast 1st H FY16 1st H FY17 vs. 1st H 1st H FY17 FY16 (a) (c) (c)-(a) % (c)-(b) % (b) Net Sales 24,069 21,400 19,776 (4,292) 82.2% (100) (1,623) 92.4% Operating
Slide 8: 1st Half FY2017 Results by Segment: Optical Components
Ⅰ-４. 1st Half FY2017 Results by Segment 2) Optical Components （millions of JPY） Actual Original Actual Inc / Dec FX Impact Inc / Dec 1st H Forecast 1st H FY17 vs. 1st H FY16 1st H FY17 FY16 (c) (a) (b) (c)-(a) % (c)-(b) % Net Sales 1,009 1,600 1,532 522 151.7% － (67) 95.8% Operating 187 177 － 187 －
Slide 9: 1st Half FY2017 Results by Segment: Commercial / Industrial-Use Optics
Ⅰ-４. 1st Half FY2017 Results by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Actual Original Forecast Actual Inc / Dec FX Impact Inc / Dec 1st H vs. 1st H 1st H FY17 FY16 1st H FY17 FY16 (c) (a) (b) (c)-(a) % (c)-(b) % Net Sales 5,419 5,500 5,604 184 103.4% (50) 104 101.9% Operati
Slide 10: FY2017 Financial Forecast
Ⅱ．FY2017 Financial Forecast 10 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 11: FY2017 Overview
Ⅱ-１. FY2017 Overview 【Business Environment】 Economic Situation ⇒ Digital camera market is on a slight recovery. Exchange Rate ⇒ JPY against USD and EUR is getting weaker than the original expectation. 【Revision of the Financial Forecast for FY17】 Changes in Assumptions • Revision of the base e
Slide 12: FY2017 Financial Forecast
Ⅱ-２. FY2017 Financial Forecast 1H （millions of JPY） Net Sales 2H 80,000 Original Revised Actual Inc / Dec Inc / Dec Forecast Forecast FY16 FY17 60,000 FY17 (a) (c) (c)-(a) % (c)-(b) % (b) 29,404 35,587 40,000 Net Sales 59,903 62,500 62,500 2,596 104.3% 0 100.0% 20,000 30,499 26,912 Operating 2,361 3
Slide 13: FY2017 Performance Variation Factors
Ⅱ-３. FY2017 Performance Variation Factors vs.FY2016 （millions of JPY） 4,000 3,600 639 3,000 350 2,361 500 △250 2,000 1,000 0 Actual R&D Increase FX rate Others Forecast FY16 Expenses of Sales Impact FY17 13 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 14: FY2017 Forecast by Segment: Photographic Products
Ⅱ-4. FY2017 Forecast by Segment 1) Photographic Products （millions of JPY） Original Revised Actual Inc / Dec Inc / Dec Forecast Forecast FY16 FY17 FY17 (a) (c) (c)-(a) % (c)-(b) % (b) Net Sales 46,805 47,000 47,300 494 101.1% 300 100.6% Operating 5,300 1,265 131.4% 200 103.9% 4,034 5,100 Income (% S
Slide 15: Photographic Products - New Models
Photographic Products - New Models Launched To be Launched Category Launched in 2016 in 1st Half, 2017 in 2nd Half, 2017 Wide Launched in Mar. Zoom 10-24mm VC HLD (B023) Launched Standard in Aug. Zoom SP 24-70mm F/2.8 VC USD G2 (A032) ※Best-in-class performance and image quality zoom lens（As of May
Slide 16: FY2017 Forecast by Segment: Optical Components
Ⅱ-4. FY2017 Forecast by Segment 2) Optical Components （millions of JPY） Original Revised Actual Inc / Dec Inc / Dec Forecast Forecast FY16 FY17 FY17 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 2,358 3,600 3,300 941 139.9% (300) 91.7% Operating 200 124 265.4% 0 100.0% 75 200 Income (% Sales) 3.2% 5.6%
Slide 17: Optical Components-Explore New Business Category
Optical Components-Explore New Business Category Drone <Required Technology> ・Aerospace-Friendly Design （Consideration of center of gravity for stabilized flight) ・High Resolution （A differentiating factor in a high-end category） ・Compact & Light-weight (For a longer flight time) ＜Reference Data＞ Al
Slide 18: FY2017 Forecast by Segment: Commercial / Industrial-Use Optics
Ⅱ -４. FY2017 Forecast by Segment 3) Commercial / Industrial-Use Optics （millions of JPY） Original Revised Actual Inc / Dec Inc / Dec Forecast Forecast FY16 FY17 FY17 (a) (b) (c) (c)-(a) % (c)-(b) % Net Sales 10,739 11,900 11,900 1,160 110.8% 0 100.0% Operating 700 (33) 95.4% 100 116.7% 733 600 Incom
Slide 19: Lens for Automotive Applications: Growing Segment
Lens for Automotive Applications: Growing Segment Lens for Automotive Applications Camera lens for ＜Required Technology＞ Sensing camera lens pedestrian recognition for recognition of road (Including LWIR Lens) ・Coaching markings ・High heat-resistant ・High reliability ・High-precision lens/lens barrel
Slide 20: Reference Data
Ⅲ．Reference Data 20 Copyright © Tamron Co., Ltd. All rights reserved.
Slide 21: Financial Summary
Ⅲ-１. Financial Summary （millions of JPY） Inventories Jun30, Dec 31, Jun 30, Inventries Turnover Change （Month） 2016 2016 2017 15,000 2.1 2.3 2.5 (c)-(b) 2.1 (a) (b) (c) 12,000 2.0 Cash & Deposits 15,083 16,030 17,645 1,615 9,000 1.5 Notes & Accounts 11,991 (1,428) 12,667 13,419 6,000 1.0 Receivable
Slide 22: Capital Investment, Depreciation, & Research & Development Expenses
Ⅲ-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 5,000 5,000 10.0% 4,250 4,052 4,002 4,000 3,812 4,000 3,699
Slide 23: Cash Flow Situation
Ⅲ-３. Cash Flow Situation （millions of JPY） 1st H FY16 FY16 1st H FY17 10,000 Operating CF 8,000 6,537 Investing CF 6,000 4,662 Free CF 3,997 4,250 3,046 3,056 Financing CF 4,000 2,000 0 △ 2,000 (595) (1,615) (1,524) (1,194) (1,358) △ 4,000 (2,540) △ 6,000 1st H FY16 FY16 1st H FY17 Cash Flow from Op
Slide 24: Cash Dividends Outlook
Ⅲ-４. Cash Dividends Outlook （JPY） FY17 FY13 FY14 FY15 FY16 Forecast Interim 20.00 20.00 25.00 25.00 25.00 Year-End 30.00 30.00 35.00 30.00 25.00 Annual 50.00 50.00 60.00 55.00 50.00 Dividends Payout Ratio 42.9% 35.7% 39.0% 96.2% 49.7% (Consolidated) ・Keep Stable Dividend Dividend Policy ・Dividend Pa
Slide 25: Key Performance Indicators
Ⅲ-５. Key Performance Indicators （JPY） （％） 200.00 9.2 10.0 8.0 8.0 150.00 7.8 7.6 5.9 6.0 4.5 100.00 5.5 153.98 4.0 140.14 50.00 3.1 100.69 2.0 57.19 0.00 0.0 FY17 FY14 FY15 FY16 Forecast EPS 140.14 153.98 57.19 100.69 ROE 7.8 8.0 3.1 5.5 ROA 9.2 7.6 4.5 5.9 ROE＝Net Income/Net Assets (Average for FY
Slide 26: Impact of Foreign Exchange Rate Fluctuations
Ⅲ-６. Impact of Foreign Exchange Rate Fluctuations Actual 1st Half FY2017 (JPY) （millions of JPY） Exchange Rate Impact Actual Actual Operating Net Sales 1st H FY16 1st H FY17 Income USD 111.72 112.35 0 100 EUR 124.56 121.70 (100) (100) Others - - (50) 0 Total - - (150) 0 (Impact on FY2016 Actual perf
Slide 27: Disclaimer
Disclaimer 1. The purpose of this material is to provide information on the actual results for 1st Half of FY2017 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