Results Briefing on February 10, 2005 Tamron Co., Ltd. (Code:7740 ) Financial Results FY2004
Results Briefing on February 10, 2005
Tamron Co., Ltd. (Code:7740 )
Financial Results FY2004
2
Financial Results FY2004
CONTENTSⅠ. Financial Results FY2004 and Forecast FY2005
1. Business Briefing・・・・・・・・・・・・・・・・・・・P.42. Net Sales・・・・・・・・・・・・・・・・・・・・・・・・・ P.53. Net Sales by Segment ・・・・・・・・・・・・・・・P.64. Operating Income ・・・・・・・・・・・・・・・・・・P.75. Operating Income by Segment・・・・・・・・ P.86. Net Income ・・・・・・・・・・・・・・・・・・・・・・・P.97. Total Assets and ROA・・・・・・・・・・・・・・・P.108. Cash Flows・・・・・・・・・・・・・・・・・・・・・・・P.119. Liabilities with Interest・・・・・・・・・・・・・ P.1210. Inventories・・・・・・・・・・・・・・・・・・・・・・・P.1311. Capital Investment and Depreciation・・・P.1412. R&D Expenditure・・・・・・・・・・・・・・・・・ P.1513. Number of Employees・・・・・・・・・・・・・・P.1614. About Corporate Governance・・・・・・・・ P.1715. Result of Public Offering and
Allotment of Funds・・・・・・ P.18
Ⅱ. Mid-Term Strategy
1. Brand Message・・・・・・・・・・・・・・・・・・・P.202. Mid-Term Management Goals・・・・・・・P.203. Eyes on Diversity・・・・・・・・・・・・・・・・・P.214. Mid-Term Goals by Segment
① Photographic Products Division・・・・P.22② Optical Components Division・・・・・ P.23③ Commercial/
Industrial-Use Optics Division・・・・P.245. Pressing Issues・・・・・・・・・・・・・・・・・・・P.25
Ⅰ. Financial Results FY2004 and Forecast FY2005
4
Financial Results FY2004
Ⅰ-1. Business Briefing
【【ProductsProducts】】
Photographic Products
Interchangeable lenses for 35mm single lens reflex camerasMedium-format cameras
Optical Components
Video camera lenses/Digital still camera lenses
Commercial/Industrial-Use Optics
CCTV camera lenses/Projection lens units/Precision injection moldHigh-precision engineering plastic products/Test plates/Optical device units
【【Company ProfileCompany Profile】】
Subsidiaries Overseas : 5Domestic Branches 4/Domestic Sales Office 5ISO9001/ISO14001 certifiedNet Sales : ¥63,345 millionNumber of Employees (Consolidated): 3,232Total Assets : ¥40,857 million
(As of December 31,2004)
【【Net Sales by SegmentNet Sales by Segment】】
Net Sales¥63,345 millionNet Sales
¥63,345 million
Optical Components¥43,980 million
PhotographicProducts
¥10,765 million
Commercial /Industrial-Use Optics
¥8,600 million
5
Financial Results FY2004
Ⅰ-2. Net Sales
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000 Consolidated Non-Consolidated
Consolidated 30,472 41,580 54,837 63,345 70,000 75,000 83,000
Non-Consolidated 28,425 38,916 51,959 59,267 65,000 72,000 80,000
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
(Millions of Yen)
6
Financial Results FY2004
Ⅰ-3. Net Sales by Segment
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Photographic Products 11,121 9,489 9,468 10,765 12,514 13,400 14,200 Optical Components 14,251 27,205 38,520 43,980 44,484 46,100 48,700 Commercial/Industrial-Use Optics 5,100 4,886 6,849 8,600 13,002 15,500 20,100
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
(Millions of Yen) ■ Photographic Products■Optical Components■ Commercial Industrial Use Optics
7
Financial Results FY2004
Ⅰ-4. Operating Income
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
ConsolidatedNon-Consolidated
Consolidated 389 3,685 6,341 7,223 7,357 8,150 9,200 Non-Consolidated 457 2,871 5,404 5,582 5,806 6,500 7,400
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
(Millions of Yen)
8
Financial Results FY2004
Ⅰ-5. Operating Income by Segment
(2,000)
0
2,000
4,000
6,000
8,000
10,000
12,000
Photographic Products (196) (306) 137 493 1,064 1,350 1,450
Optical Components 1,027 4,253 6,741 7,364 6,581 6,650 6,900
Commercial/Industrial-Use Optics 392 507 611 621 1,162 1,600 2,400
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
■ Photographic Products■Optical Components■Commercial/Industrial-Use Optics
(Millions of Yen)
9
Financial Results FY2004
Ⅰ-6. Net Income
(1,000)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000ConsolidatedNon-Consolidated
Consolidated (109) 1,864 3,347 4,474 4,800 5,200 5,800 Non-Consolidated 167 1,255 2,932 3,679 4,400 4,800 5,300
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
(Millions of Yen)
10
Financial Results FY2004
Ⅰ-7. Total Assets and ROA
0
10,000
20,000
30,000
40,000
50,000
60,000
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
12.0Total Assets ROA
Total Assets 22,820 24,841 32,709 40,857 47,619 51,000 55,000
ROA (0.5) 7.5 10.2 11.0 10.1 10.2 10.5
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
(%)(Millions of Yen)
11
Financial Results FY2004
Ⅰ-8. Cash Flows
5,2575,3323,2571,635CFs from operating activities
4,900968(1,331)505CFs from financing activities
(4,909)(3,333)(1,327)(1,223)CFs from investing activities
2.111.310.921.04Liquidity on hand (month)
11,1445,9983,1752,628Cash and cash equivalents
2004200320022001
1,635
3,257
5,332 5,257
(1,223) (1,327)
(3,333)
(4,909)
505
(1,331)
968
4,900
(6,000)
(4,000)
(2,000)
0
2,000
4,000
6,0002001 2002 2003 2004
CFs from operating activitiesCFs from investing activitiesCFs from financing activities
(Millions of Yen)
12
Financial Results FY2004
Ⅰ-9. Liabilities with Interest
19.7%
8,029
3,184
4,845
2004
16.8%
7,990
3,290
4,700
2005(Plan)
27.1%32.1%41.1%Loan-to-assets
8,8777,9769,371Total
3,3132,8243,482Long-term loans payable
5,5645,1515,889Short-term loans payable
200320022001
0
2,000
4,000
6,000
8,000
10,000
2001 2002 2003 2004 2005(Plan)0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Short-term loans payable Long-term loans payable
Loan-to-assets
(%)(Millions of Yen)
13
Financial Results FY2004
Ⅰ-10. Inventories
1.6
8,593
2004
1.3
7,426
2005 (Plan)
1.82.03.3Turnover
8,0876,9698,423Inventories
200320022001
1.2
6,113
2004
0.9
4,764
2005(Plan)
1.31.62.5Turnover
5,6445,0435,854Inventories
200320022001
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2001 2002 2003 2004 2005(Plan)0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Inventories Inventory turnover (Month)
[Consolidated] [Non-Consolidated]
(Millions of Yen)
14
Financial Results FY2004
Ⅰ-11. Capital Investment and Depreciation
0
1,000
2,000
3,000
4,000
5,000
6,000
Consolidated Non-Consolidated
Consolidated 1,613 1,220 3,142 5,587 6,886 5,060 4,259
Non-Consolidated 938 823 1,384 2,626 5,924 4,051 3,730
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
1,258
1,801
1,900
2,500
982
1,151
2,4001,098819840Non-Consolidated
2,9001,4681,0701,043Consolidated[Depreciation]
[Capital Investment]
(Millions of Yen)
15
Financial Results FY2004
Ⅰ-12. R&D Expenditure
0
500
1,000
1,500
2,000
2,500
3,000
Consolidated 1,455 1,727 1,574 1,870 2,581 2,850 3,150
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
(Millions of Yen)
16
Financial Results FY2004
Ⅰ-13. Number of Employees
0
1,000
2,000
3,000
4,000
5,000
6,000
Consolidated Non-Consolidated
Consolidated 1,378 1,552 2,497 3,232 5,088 5,272 5,399 Non-Consolidated 724 715 734 791 916 952 982
2001 2002 2003 2004 2005(Plan) 2006(Plan) 2007(Plan)
(Employees)
17
Financial Results FY2004
Ⅰ-14. About Corporate Governance
Strengthening corporate governance by separating Board of Directors with corporate decision making functions and Executive Officers with business executing functions (Board of Directors:7 Executive Officers:11)
For Better Disclosure and Accountability
→ Quarterly Disclosure/Environmental Report/Addition of IR web site in English/Setting-up an information desk for individual shareholders
For Better Compliance
→ Implementation of “Personal Data Control Rules”, “Trade Secret Control Rules”, “Security Trade Control Rules” and corporate-wide education of compliance policy.
1. Introduction of Executive Officer System (effective January 1, 2005)
【Objective】
2. Actions for Corporate Governance in FY2004
18
Financial Results FY2004
Ⅰ-15. Result of Public Offering and Allotment of Funds
We have allotted the funds from the public offering last year as follows:
8581,890Injection-molding manufacturing equipment
3,0633,1116,1746,080Total
1,7902,440Overseas
450750DomesticLens and prism processing equipment
131,000Headquarters building extension for new injection-molding plant
BalanceAmount PaidFund RaisedAmount Projected
(Millions of Yen)
Funds allotment progresses as planed.
Ⅱ.Mid-Term Strategy
20
Financial Results FY2004
Net Sales : ¥83,000 million
Ⅱ-1. Brand Message
Ordinary Profit : ¥8,700 million
Operating Income : ¥9,200 million(10% operating income or more)
Ⅱ-2.Mid-Term Management Goals (2007)
Cutting Edge Optical Solutions for an Array of Imaging DevicesCutting Edge Optical Solutions for an Array of Imaging Devices-Eyes on Diversity--Eyes on Diversity-
21
Financial Results FY2004
Ⅱ-3. Eyes on DiversityOptical
Industries17.8% Electronic
Industries71.3%
Automotive Industries
Building and Construction
Apparel & Textile Industries
Food IndustriesOther Industries
Medical Services
Cosmetics
Government
Telecom & Communication
2.0%
Security Industries5.9%
Eyes on DiversityEyes on Diversity
22
Financial Results FY2004
Positive investment in the rapidly expanding Digital SLR MarketStrengthen organization of OEM business
Photographic Products Division Photographic Products Division
【New Products in 2005】
Operating Income¥1,450 million
Net Sales¥14,200 million
2007Mid-Term Goals
SP AF11-18mm F/4.5-5.6Di II LD Aspherical [IF]
ModelA14
ModelA13
SP AF18-200mm F/3.5-6.3 XRDi II LD Aspherical [IF] MACRO
Ⅱ-4. Mid-Term Goals by Segment ①
23
Financial Results FY2004
Optical Components DivisionOptical Components Division
Concentrate resources on the growing DSC/DVC market to maintain overwhelmingsuperiority through development ability and production capabilityImplement technology revolution to enhance competitiveness as an attractive supplierand secure 20% market sharePlan entry into market for mobile phones equipped with high resolution, zoom cameras
Operating Income¥6,900 million
Net Sales¥48,700 million
2007Mid-Term Goals
Ⅱ-4. Mid-Term Goals by Segment②
24
Financial Results FY2004
Expand sales and profit from CCTV business by strengthening overseas productionIncrease orders for “Eyes” for various industries such as iris recognition/automotiveapplication/robots and etc.Target to hold a top share in the expanding projector business by concentration of human resources and funds
Ⅱ-4. Mid-Term Goals by Segment ③Commercial IndustrialCommercial Industrial--Use Optics DivisionUse Optics Division
Operating Income¥2,400 million
Net Sales¥20,100 million
2007Mid-Term Goals
25
Financial Results FY2004
Ⅱ-5. Pressing Issues1. Timely launch of attractive new products by each of the four business units in line
with the corporate tag line of “Tamron – cutting-edge optical solutions for an array of imaging devices”
2. Expansion of optical components business in projection device segment and getting a foothold in the cellular phone camera market
3. Development of core technologies revolving around optics and corporate-wide campaign drive of strategic philosophies surrounding IP (Intellectual Property)
4. Structural improvement in overseas production network associated with procurement system as well as those of domestic facilities to accelerate efficient cost reduction
5. Reduction in lead time of product development cycle by virtue of establishing a new mould processing plant and innovating production engineering technologies
6. Improvement in profit structure by solidifying group company management system and improvement in social compliance philosophy among them
7. Fundamental restructuring of operations by implementing global management information system aimed at achieving optimum inventory control
8. Further improvement in cash flow management and in consolidated balance sheet9. Corporate-wide promotion of environmental preservation and protection effectively
linked with quality management system based on ISO activities
26
Financial Results FY2004
Disclaimer
1. The Purpose of this material is to provide information on the financial results of FY2004 and future business strategy. 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 presentation in compliance with our management policies and certain premises that are deemed reasonable by us.
3. Please note that the actual result 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.