Interim Financial Results FY2007. Results Briefing on August 10, 2007 Tamron Co., Ltd. (Code:7740)

Transcription

1 Interim Financial Results FY2007 Results Briefing on August 10, 2007 Tamron Co., Ltd. (Code:7740)

2 Contents I. Interim Financial Results Briefing 1. Business Briefing 2. Interim Financial Results FY Business Segment Interim Financial Results1 4. Business Segment Interim Financial Results2 5. Financial Summary 6. Cash Flow Statement 7. Liabilities with Interests / Inventories III. Mid Term Strategy 1. Corporate Tagline 2. Mid Term Management Goals for FY Segment 2009 Strategy 1) graphic Products 2) Components 3) Commercial / Industrialuse Optics 4. Pressing Issues II. Forecast FY Forecast FY Forecast FY Forecast FY 2007Business Segment1 4. Forecast FY 2007Business Segment2 5. Capital Expenditure & Depreciation Costs 6. Research & Development Cost 7. Outlook for Cash Dividends 2 Interim Financial Results FY2007 2

3 I. Financial Results Briefing Interim Financial Results FY2007 3

4 I 1. Business Briefing Company Profile Total Subsidiaries Overseas : 6 Domestic Offices : 4 / Sales Offices : 7 ISO 9001, ISO Certified Consolidated Net Sales : 33,403 million ( As of June 30, 2007) Consolidated Number of Employees : 5,579 ( As of June 30, 2007) Consolidated Total Assets : 52,537 million ( As of June 30, 2007) Commercial / Industrialuse 3,770 million Net Sales 33,403 million Components 17,033 million graphic Products 12,599million Business Segment graphic Products Interchangeable lenses for 35mm / Digital SLR camera Components Camcorder lenses Digital still camera Lenses Cellular phone camera lenses Commercial / Industrialuse Optics CCTV camera lenses Projector lenses Injection molds, parts & components devices (Business Segment Net Sales) Interim Financial Results FY (As of June 30, 2007) 4

5 I 2. Interim Financial Results FY 2007 Actual June 30, 2006 (a) Forecast June 30, 2007 (b) Actual June 30, 2007 (c) Change (Actual June 30, 2006/ Actual June 30, 2007) (c)(a) % Change (Forecast June 30, 2007/ Actual June 30, 2007) (c)(b) % Net Sales 28,118 30,000 33,403 5, % 3, % Operating Income 2,518 2,550 4,529 2, % 1, % Operating Income Ratio 8.9% 8.5% 13.6% Ordinary Income 2,294 2,300 4,015 1, % 1, % Ordinary Income Ratio 8.2% 7.7% 12.0% Net Income 1,631 1,600 2, % % Net Income Per Share (Yen) Interim Financial Results FY2007 5

6 I 3. Business Segment Interim Financial Results1 Actual June 30, 2006 (a) Forecast June 30, 2007 (b) Actual June 30, 2007 (c) Change (Actual June 30, 2006/ Actual June 30, 2007) (c)(a) % Change (Forecast June 30, 2007/ Actual June 30, 2007 ) (c)(b) % Net Sales 6,836 10,400 12,599 5, % 2, % graphic Products Operating Income Operating Income Ratio % 1, % 2, % 1, % 1, % Increased sales due to the expansion of the DSLR market and the introduction of new products improved operating profit ratio. Net Sales 16,411 16,400 17, % % Components Operating Income Operating Income Ratio 2, % 1, % 2, % (23) 99.0% % Increased sales due to the expansion of the DSC market and improved operating profit ratio through cost reduction efforts. Net Sales 4,870 3,200 3,770 (1,100) 77.4% % Commercial / Industrialuse Optics Operating Income Operating Income Ratio % % % % % Steady security market demand and decrease in sales due to the decline of RPTV market. Elimination and/or Corporate (865) (1,050) (828) % % Total Net Sales 28,118 30,000 33,403 5, % 3, % Operating Income 2,518 2,550 4,529 2, % 2, % 6 Interim Financial Results FY2007 6

7 I 4. Business Segment Interim Financial Results2 40,000 35,000 30,000 25,000 28,118 Net Sales 30,000 33,403 6,000 5,000 4,000 Operating Income 2,550 2,518 4,529 20,000 15,000 10,000 5,000 0 Commercial Commercial Commercial 3,000 2,000 1,000 0 Commercial Commercial Commercial Actual June, 06 Forecast June, 07 Actual June, 07 Actual June, 06 Forecast June, 07 Actual June, 07 6,836 10,400 12, ,700 2,822 16,411 16,400 17,033 2,260 1,800 2,236 Commercial 4,870 3,200 3,770 Commercial Total 28,118 30,000 33,403 Elimination and/or corporate (865) (1,050) (828) Total 2,518 2,550 4,529 7 Interim Financial Results FY2007 7

8 I 5. Financial Summary June 30, 2006 December 31, 2006 (a) June 30, 2007 (b) Change (December 31, 2006/ June 30, 2007 ) (b)(a) Main Factor for Change Cash and Cash Equivalents 12,259 13,409 13,411 1 Notes and Accounts Receivable, trade 8,472 11,006 12,480 1,474 Increased sales Inventories 7,369 7,045 8,334 1,288 Increased sales Other Current Assets 913 1, (87) Fixed Assets 16,092 17,056 17, Expansion of the production plant in China Total Assets 45,107 49,528 52,537 3,008 Current Liabilities 11,720 14,076 15,605 1,528 Increased accounts payable and income taxes payable Total LongTerm Liabilities 4,135 3,926 3,366 (559) Decreased longterm liabilities Total Liabilities 15,856 18,002 18, Total Shareholders Equity 29,251 31,525 33,565 2,039 Increased retained earnings Total Liabilities and Shareholders Equity 45,107 49,528 52,537 3,008 8 Interim Financial Results FY2007 8

9 I 6. Cash Flow Statement June 30, 2006 December 31, 2006 June 30, 2007 Remarks Cash Flow from Operating Activities 3,225 7,328 2,844 Increase in income before income tax, increase in depreciation and amortization covered the account receivable, increased inventory, and income taxes paid. Cash Flow from Investing Activities (1,952) (4,405) (1,153) Acquisition of intangible fixed assets in relation to expansion of the production plant in China. Free Cash Flow 1,272 2,923 1,691 Cash Flow from Financing Activities (487) (1,175) (1,905) Repayment of long term and short term loans, and cash dividends paid. Cash and Cash Equivalents at Year End 12,259 13,409 13,411 9 Interim Financial Results FY2007 9

10 I 7. Liabilities with Interests / Inventories Inventories Liabilities with Interests 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2, , , ,334 (Month) ,000 8,000 7,000 6,000 5,000 4,000 3,000 2, , , ,239 (%) , , June 30, 2006(A) December 31, 2006(A) June 30, 2007(A) June 30, 2006(A) December 31, 2006(A) June 30, 2007(A) 0 Inventories 7,369 7,045 8,334 Liability with Interest 7,483 7,326 6,239 Inventory Turnover LoantoAsset Interim Financial Results FY

11 II. Forecast FY 2007 Interim Financial Results FY

12 II 1. Forecast FY (The following forecasts are based on the exchange rate of US$1= 120, Euro= 160) Actual FY 2006 (a) Actual June 30, 2007 Forecast June 30, ~ December 31, 2007 Forecast FY 2007 (b) Change (Actual FY 2006/ Forecast FY 2007) (b)(a) %(b)/(a) Net Sales 63,685 33,403 33,997 67,400 3, % Operating Income 6,625 4,529 4,071 8,600 1, % Operating Income Ratio 10.4% 13.6% 12.0% 12.8% Ordinary Income 5,608 4,015 3,485 7,500 1, % Net Income 4,028 2,296 2,204 4, % 12 Interim Financial Results FY

13 II 2. Forecast FY Net Sales Operating Income 80,000 10,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 63,345 59,607 63,685 2nd Half 2nd Half 2nd Half 1st Half 1st Half 1st Half 67,400 2nd Half 1st Half 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 7,223 2nd Half 1st Half 4,803 2nd Half 1st Half 6,625 2nd Half 1st Half 8,600 2nd Half 1st Half 0 0 FY2004(A) FY2005(A) FY2006(A) FY2007(F) FY2004(A) FY2005(A) FY2006(A) FY2007(F) 1 st Half 30,732 27,612 28,118 33,403 1 st Half 3,489 2,676 2,518 4,529 2 nd Half 32,612 31,995 35,567 33,997 2 nd Half 3,733 2,127 4,107 4,071 Fiscal Year 63,345 59,607 63,685 67,400 Fiscal Year 7,223 4,803 6,625 8,600 Change 115.5% 94.1% 106.8% 105.8% Change 113.9% (66.5%) 137.9% 129.8% *(A) : Actual *(F) : Forecast 13 Interim Financial Results FY

14 II 3. Forecast FY 2007 Business Segment1 graphic Products Net Sales Operating Income Operating Income Ratio Actual FY 2006 (a) 17,287 2, % Original Forecast FY 2007 (b) 22,740 3, % New Forecast FY 2007 (c) 25, % Change (Actual FY 2006/ New Forecast FY 2007) (c)(a) (c)/(a) 146.9% 197.0% Increased sales due to the expansion of the DSLR market and introduction of new products improved operating profit ratio. 5,500 8,112 2,707 Change (Original Forecast FY 2007/ New Forecast FY 2007) (c)(b) 2,660 1,690 % (c)/(a) 111.7% 144.4% Components Net Sales Operating Income Operating Income Ratio 36,766 5, % 33,770 4, % 34, % (2,766) (794) 92.5% 84.9% Increased sales due to the expansion of the DSC market and the improved operating profit ratio through cost reduction efforts. 4, % 103.0% Net Sales 9,631 7,490 8,000 (1,631) 83.1% % Commercial / Industrialuse Optics Operating Income Operating Income Ratio % % % (105) 79.1% % Steady security market demand and decrease in sales due to the decline of RPTV market. Elimination and/or Corporate (1,927) (1,760) (1,760) 167 Total Net Sales 63,685 64,000 67,400 3, % 3, % Operating Income 6,625 6,640 8,600 1, % 1, % 14 Interim Financial Results FY

15 II 4. Forecast FY 2007 Business Segment2 80,000 70,000 60,000 50,000 40,000 Net Sales 67,400 63,345 63,685 59,607 12,000 10,000 8,000 6,000 Operating Income 7,223 6,625 4,803 8,600 30,000 20,000 10,000 4,000 2,000 0 Commercial Commercial Commercial Commercial 0 Commercial Commercial Commercial Commercial FY2004(A) FY2005(A) FY2006(A) FY2007(F) FY2004(A) FY2005(A) FY2006(A) FY2007(F) 10,765 14,912 17,287 25, ,363 1,788 4,418 2,792 5,254 5,500 4,460 43,980 33,800 36,766 34,000 Commercial Commercial Total 8,599 63,345 10,894 59,607 9,631 63,685 8,000 67,400 Elimination and/or corporate (1,253) (2,052) (1,927) (1,760) Change 115.5% 94.1% 106.8% 105.8% Total 7,223 4,803 6,625 8,600 *(A) : Actual *(F) : Forecast Change 113.9% 66.5% 137.9% 129.8% 15 Interim Financial Results FY

16 II 5. Capital Expenditure & Depreciation Costs 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Depreciatoin 1,070 Capital Expenditure 3,142 Net Income 3,347 Capital Expenditure 5,587 Depreciatoin 1,468 Net Income 4,474 Capital Expenditure 6,017 Depreciatoin 2,210 Net Income 3,343 Depreciatoin 2,620 Capital Expenditure 3,816 Net Income 4,028 Depreciatoin 2,900 Capital Expenditure 3,700 Net Income 4,500 0 FY2003(A) FY2004(A) FY2005(A) FY2006(A) FY2007(F) Depreciatoin 1,070 1,468 2,210 2,620 2,900 Net Income 3,347 4,474 3,343 4,028 4,500 Capital Expenditure 3,142 5,587 6,017 3,816 3, Interim Financial Results FY

17 II 6. Research & Development Cost 3,000 2, , ,590 2,583 1,500 1,574 1,870 1, FY2003(A) FY2004(A) FY2005(A) FY2006(A) ,800 FY2007(F) (%) R & D 1,574 1,870 2,590 2,583 2,800 Ratio *R&D cost / Net sales ratio 17 Interim Financial Results FY

18 II 7. Outlook for Cash Dividends Before stock split After stock split Actual FY2003 Actual FY2004 Actual FY2005 Actual FY2006 Forecast FY2007 Interim _ 7.50 *1) Year End *2) Total Dividend Payout Ratio 7.8% 12.4% 27.7% 28.0% 22.0% *1)Accounting for the twoforone stock split in August 19, 2005 *2) Including 5 commemorative dividend 18 Interim Financial Results FY

19 III. Mid Term Strategy Interim Financial Results FY

20 III 1. Corporate Tagline III 2. Mid Term Management Goals for FY 2009 Net Sales: 72,000 million Operating Income: 9,000 million (12.5% (12.5% or or higher higher operating operating income income ratio) ratio) 20 Interim Financial Results FY

21 III 3. Segment 2009 Strategy 1) graphic Products 2009 MidTerm Target Net Sales : 30,200 million Actively invest in the fast growing digital SLR camera lens market Concentrate on strengthening OEM business Series Series AF 28300mm F/ XR Di VC (Model A20) On sale August 29th Equipped with Vibration Compensation Mechanism AF18250mm F/ Di II (Model A18) SP AF1750mm F/2.8 XR Di II (Model A16) Designed exclusively for APSC sized Digital SLRs 21 Interim Financial Results FY

22 III 3. Segment 2009 Strategy 2) Components Net Sales: 32,800 million 2009 MidTerm Target Secure sales volume and profit margin by increasing cost competitiveness in DSC and DVC market by shifting to overseas production To introduce cellular phone camera lenses aimed for high mega pixel application with zoom capabilities To maintain our status as an attractive supplier, we will continue to add value to our products through continuous technological innovation Digital Still Camera Lens Cellular Phone Camera Lens 22 Interim Financial Results FY

23 III 3. Segment 2009 Strategy 3) Commercial / Industrialuse Optics Net Sales: 9,000 million Expand the range of products for CCTV segment and increase market share 2009 MidTerm Target Strengthening of the automotive application related business (obtain TS16949 certification) Expand market demand for New eyes in fields of iris identification and robotic application Projector / optical device business will be downsized due to the decline of RPTV market (Expansion of LCD TV and plasma display TV) 1/1.8 Megapixel compatible HighResolution Fixed Focal Lenses for Industrial Use Interim Financial Results FY /3 format Megapixel Compatible VariFocal Lens 23

24 III 4. Pressing Issues The list below are priority issues selected from Pressing Issues listed in the financial statements (annual reports) 1. New market development pursuant to our corporate tag line New eyes for industry 2. Expansion of the cellular phone camera lens business and further promotion of automotive application business 3. Research & development of core technologies surrounding optics and corporatewide campaign drive of augmenting intellectual property strategy 4. Accelerating further cost reduction by overseas production including inhouse production and local procurement, and cost reduction efforts in domestic production plants. 5. Speeding up newproduct development by virtue of innovation in injection mold process 6. Utilization of ERP system to promote corporatewide business process innovation and optimization of inventory management 7. To obtain TS16949(quality management standard for automotive industry) certification, and further strengthening our CSR activities. 24 Interim Financial Results FY

25 Disclaimer 1. The purpose of this material is to provide information on the Interim Financial Results FY 2007 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 our presentation are based on the data that are obtainable at the time of the presentation in compliance with our management policies and certain premises that are deemed reasonable by us. 3. Please note that the actual results may sometimes differ from the forecasts contained herein due to various factors. 4. We are not liable in any way for any damages or losses incurred in connection with your use of any information or data contained herein or provided verbally in our presentation. 25 Interim Financial Results FY