FY2009 Financial Results February 15, 2010 Tamron Co., Ltd. (Code: 7740)
FY2009Financial Results
February 15, 2010Tamron Co., Ltd. (Code: 7740)
2FY2009 Financial Results
Contents
Ⅰ. FY2009 Financial Results 1. Business Briefing 2. FY2009 Summary
3. FY2009 Quarterly Financial Results 4. FY2009 Financial Results 5. FY2009 Quarterly Results by Business Segment 6. FY2009 Results by Business Segment 7. Financial Summary 8. Capital Investment / Depreciation / Research & Development
9. Cash Flow Statement 10. Inventories / Liabilities with Interests
Ⅱ. FY2010 Financial Forecast 1. FY2010 Forecast 2. FY2010 Net Sales Forecast 3. FY2010 Operating Income Forecast 4. FY2010 Forecast by Business Segment 5. FY2010 Sales Forecast by Business Segment 6. FY2010 OP Forecast by Business Segment 7. Capital Investment & Depreciation 8. Research & Development 9. Outlook for Cash Dividends
10. Referential Data 1) Key Performance Measures 2) Effect of Exchange Rate Fluctuation
Ⅲ. Mid-Term Strategy 1. Corporate Tagline 2. Mid-Term Management Goals for FY2012 3. Strategy Towards FY2012 by Segment 1) Photographic Products 2) Optical Components 3) Commercial / Industrial-use Optics 4) New Business 4. Issues on Mid-to Long-Term Management
P.4P.5P.6P.7P.8P.9P.10P.11P.12P.13
P.15P.16P.17P.18P.19P.20P.21P.22P.23
P.24P.25
P.27P.27
P.28P.29P.30P.31P.32
3FY2009 Financial Results
Ⅰ.FY2009 Financial Results
4FY2009 Financial Results
Ⅰ-1. Business Briefing
Total Subsidiaries Overseas : 6
/ Liaison Offices : 2 (India, Russia)
Domestic Offices : 4 / Sales Offices : 7
ISO9001, ISO14001 Certified
ISO/TS16949 Certified
Consolidated Net Sales : ¥49,892 million (As of December 31, 2009)
Consolidated Number of Employees : 5,472 (As of December 31, 2009)
Consolidated Total Assets : ¥47,391 million (As of December 31, 2009)
Company Profile Photographic Products
Interchangeable lenses for 35mm / Digital SLR camera
Optical Components
Camcorder lenses Digital still camera lenses Cellular phone camera lenses
Commercial / Industrial-use Optics
CCTV camera lenses Surveillance camera lenses Automotive lenses Injection molds, parts & components Test Plates Optical devices
Business Segment
Net Sales¥49,892 million
Net Sales¥49,892 million
PhotographicProducts
¥29,422 millionOptical
Components¥12,956 million
Commercial /Industrial-use¥7,513 million
Net Sales by Business Segment (As of December 31, 2009)
5FY2009 Financial Results
Ⅰ-2. FY2009 Summary
A slow recovery out of deep slump
Throughout the year Yen appreciated against US dollar and Euro
A robust recovery in 4Q
A record high quarterly sales and operating profit of Tamron brandinterchangeable lenses in 4Q resulted increased sales of Photographic Productsbusiness segment YoY.
Mainstay product AF18-270mm VC won EISA award - 4 years in a row.
Launched new AF17-50mm F/2.8 with Tamron's unique proprietary VibrationCompensation (VC) system.
Acquired ISO / TS16949 certification for automotive quality management system
Business Environments
FY2009 Results
Topics
Average exchange rate 2008 2009
USD 103.47yen → 93.65yen
Euro 152.65yen → 130.38yen
6FY2009 Financial Results
Ⅰ-3. FY2009 Quarterly Financial Results
3.6%
474
13,101
20093Q
3.7%
452
12,400
20092Q
2,2951,845(485)OperatingIncome
4.6%12.2%(5.2%)OperatingIncome Ratio
9,252
20091Q
48,89215,137Net Sales
2009Annual
20094Q
(millions of yen)
9 ,252
12,400 13,10115,137
1,845
474452
(485)(5 ,000)
0
5,000
10,000
15,000
20,000
1Q 2Q 3Q 4Q
(Net Sales/millions of yen)
(500)
0
500
1,000
1,500
2,000
(Operating Income/millions of yen)
Net Sa les Operati ng Income
7FY2009 Financial Results
Ⅰ-4. FY2009 Financial Results
91.8%(204)37.0%(3,903)2,2952,5006,198OperatingIncome
-(0.3%)-(5.3%)4.6%4.9%9.9%OperatingIncome Ratio
3,029
9.3%
5,842
62,537
ActualFY 2008
(a)
21.2%
-
38.7%
79.8%
%
(2,386)
(4.8%)
(3,578)
(12,645)
(c)-(a)
Change
OrdinaryIncome
58.4%(457)6421,100Net Income
-(0.4%)4.5%4.9%Ordinary
Income Ratio
90.5%(236)2,2632,500
97.8%(1,107)49,89251,000Net Sales
%(c)-(b)
ChangeActualFY 2009
(c)
ForecastFY 2009
(b)
(millions of yen)
8FY2009 Financial Results
Ⅰ-5. FY2009 Quarterly Results by Business Segment
(millions of yen)
3.9%
71
1,824
3.1%
95
3,121
10.0%
745
7,454
20092Q
7.7%
142
1,855
0.9%
31
3,561
10.1%
775
7,684
20093Q
9.7%15.4%10.7%OperatingI n c o m eR a t i o
Commercial /Industrial-use
Optics
0.3%8.3%(14.6%)OperatingI n c o m eR a t i o
OpticalComponents
11.7%18.2%4.2%OperatingI n c o m eR a t i o
PhotographicProducts
7,5132,1781,654Net Sales
12,9563,6012,672Net Sales
29,4229,3574,926Net Sales
177
(389)
204
20091Q
334
298
1,702
20094Q
726
37
3,428
2009Annual
OperatingI n c o m e
OperatingI n c o m e
OperatingI n c o m e
9FY2009 Financial Results
Ⅰ-6. FY2009 Results by Business Segment(millions of yen)
15.7%
1,344
8,585
14.0%
3,506
25,014
(1,830)
(4,090)
-
-
90
(110)
-
(430)
(1,260)
-
(1,490)
(2,720)
Foreximpact
-(0.4%)-(6.0%)9.7%10.1%O p e r a t i n gIncome Ratio
Commercial/ Industrial-use Optics
-1.1%-(13.7%)0.3%(0.8%)O p e r a t i n gIncome Ratio
OpticalComponents
-(1.0%)-(0.4%)11.7%12.7%12.1%O p e r a t i n gIncome Ratio
Photographic Products
37.0%
79.8%
-
54.0%
87.5%
1.1%
51.8%
97.9%
101.7%
%
(3,903)
(12,645)
256
(617)
(1,072)
(3,469)
(12,057)
(72)
484
(c)-(a)
Change
%
Change
95.1%(386)7,5137,900N e t S a l e s
103.7%45612,95612,500N e t S a l e s
96.2%(1,177)29,42230,60028,938N e t S a l e s
6,198
62,537
(2,153)
3,500
ActualFY2008
(a)
2,500
51,000
(2,100)
800
(100)
3,900
ForecastFY2009
(b)
2,295
49,892
(1,896)
(204)
(1,107)
203
(73)
137
(471)
(c)-(b)
O p e r a t i n gI n c o m e
Net Sales 97.8%
726
37
3,428
ActualFY2009
(c)
-Elimination and/or Corporate
91.8%-
90.8%Operating Income
Both sales and profits fell due to slowdown in equipment spending.
Total
Secured profit although sales fell by almost half due to severe pricing pressure and slump of mid-to-high end DSC market.
-Operating Income
Sales increased driven by Tamron brand lens sales overseas while profit slightly eroded due to forex impact.
87.9%Operating Income
10FY2009 Financial Results
Ⅰ-7. Financial Summary
(1,784)47,39149,176Total Liabilities andShareholders’ Equity
67.4%
33,126
16,049
2,680
13,369
49,176
19,112
1,8527,959
9,499
10,752
FY2008(a)
2.1%69.5%Equity Ratio
(197)32,929Total Shareholders’Equity
(1,586)14,462Total Liabilities
(121)2,558Total Long-TermLiabilities
Mainly due to a decrease in reserves for withdrawalloss from pension fund and Income taxes payable(1,465)11,904Current Liabilities
(1,784)47,391Total Assets
Decreased due to scheduled depreciation andcutback in new investments(2,276)16,836Fixed Assets
1962,049Other Current Assets
(907)7,051Inventories
679,566Notes and AccountsReceivable, trade
1,13411,887Cash and CashEquivalents
Main Factor for ChangeChange(b)-(a)
FY2009(b)
(millions of yen)
11FY2009 Financial Results
Ⅰ-8. Capital Investment / Depreciation / Research & Development
2,753
3,963
1,774
FY2009
Decreased due to cutback ingeneral expenditure whileratio to sales increased by 0.3%
(469)3,222Research &Development
(136)4,100Depreciation
Decreased due to a curtailmentof capital expenditure(2,997)4,772Capital Investment
Main Factor for ChangeChangeFY2008
(million yen)
12FY2009 Financial Results
Ⅰ-9. Cash Flow Statement
1,897
6,947
3,727
(5,773)
(1,829)
1,174
(3,100)
(801)
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000FY2008 FY2009 Operating CF
Investing CF
Free Cash Flow
Financing CF
(millions of yen)
2.86
11,887
(801)
1,897
(1,829)
3,727
FY2009
1,174Free Cash Flow
FY2008
10,752Cash and Cash Equivalents at Year End
2.06Liquidity (Months)
(3,100)Cash Flow from Financing Activities
(5,773)Cash Flow from Investing Activities
6,947Cash Flow from Operating Activities
13FY2009 Financial Results
Ⅰ-10. Inventories / Liabilities with Interests
7,0517,959
7,065
1.2
1 .5
1 .7
0
2,000
4,000
6,000
8,000
10,000
0.0
0 .5
1 .0
1 .5
2 .0
Inventories 7,065 7,959 7,051
InventoryTurnover
1.2 1.5 1.7
FY2007 FY2008 FY2009
6,311 6,056 6,396
13.512.312.1
0
2,000
4,000
6,000
8,000
10,000
0.0
5 .0
10.0
15.0
20.0
Liability withInterest
6,311 6,056 6,396
Loan-to-Asset 12.1 12.3 13.5
FY2007 FY2008 FY2009
Liabilities with InterestsInventories(millions of yen) (millions of yen)(Month) (%)
* (A):Actual (F):Forecast
14FY2009 Financial Results
Ⅱ.FY2010 Financial Forecast
15FY2009 Financial Results
1,800
10.7%
3,100
11.3%
3,300
29,100
Forecast2H
FY2010
1,319
8.2%
2,304
8.2%
2,324
28,239
Actual2H
FY2009
-3.6%8.1%5.0%4.5%(0.2%)OrdinaryincomeRatio
(677)
(40)
(0.1%)
(29)
21,653
Actual1H
FY2009
190.0%2,0364,3001,2002,263OrdinaryIncome
800
5.4%
1,300
23,900
Forecast1H
FY2010
-4.1%8.7%4.6%Operating
IncomeRatio
404.6%1,9572,600642Net Income
200.4%2,3044,6002,295OperatingIncome
106.2%3,10753,00049,892Net Sales
(b)/(a)(b)-(a)
ChangeForecastFY2010
(b)
ActualFY2009
(a)
Ⅱ-1. FY2010 Forecast
(millions of yen)
* Based on the assuming foreign exchange rates of 90 yen/USD and 125 yen/Euro
16FY2009 Financial Results
Ⅱ-2. FY2010 Net Sales Forecast
1H 1H1H 1H
2H2H
2H2H
0
20,000
40,000
60,000
80,000
FY2007(A) FY2008(A) FY2009(A) FY2010(F)
79.8%49,89228,23921,653
106.2%91.7%107.1%YoY
29,10032,21634,8012H
23,90030,32133,4031H
53,00062,53768,204Annual
* (A):Actual (F):Forecast
(millions of yen)
53,000
68,20462,537
49,892
17FY2009 Financial Results
Ⅱ-3. FY2010 Operating Income Forecast
1H1H
2H
2H
2H
2H
1H
0
2,000
4,000
6,000
8,000
10,000
FY2007(A) FY2008(A) FY2009(A) FY2010(F)
37.0%2,2952,324(29)
200.4%70.5%132.7%YoY
3,3002,7734,2592H
1,3003,4244,5291H
4,6006,1988,788Annual
(millions of yen)
4,600
8,788
6,198
2,295
* (A):Actual (F):Forecast
1st Half
18FY2009 Financial Results
Ⅱ-4. FY2010 Forecast by Business Segment
Sales and profits are expected to grow in line with the recovery of capital investment.
-(403)(2,300)(1,896)Elimination and/orCorporate
106.2%3,10753,00049,892N e t S a l e sTotal
-0.1%9.8%9.7%Operating Income Ratio
Commercial /Industrial-use
Optics
ChangeYoY
Change(b)-(a)
ForecastFY2010(b)
ActualFY2009(a)
Cost cut efforts enable increase in profit despite of possible sales decline.
Sales and profits are expected to grow in line with the market expansion.
4,600
800
8,200
8.2%
900
11,000
15.4%
5,200
33,800
2,304
73
686
7.9%
862
(1,956)
3.7%
1,771
4,377
200.4%
110.1%
109.1%
-
2429.7%
84.9%
-
151.7%
114.9%
2,295Operating Income Ratio
0.3%Operating Income Ratio
OpticalComponents
11.7%Operating Income Ratio
PhotographicProducts
7,513N e t S a l e s
12,956N e t S a l e s
29,422N e t S a l e s
726
37
3,428
O p e r a t i n g I n c o m e
O p e r a t i n g I n c o m e
O p e r a t i n g I n c o m e
(millions of yen)
19FY2009 Financial Results
Ⅱ-5. FY2010 Net Sales Forecast by Business Segment
(millions of yen)
Commercial Commercial Commercial Commercial
OpticalOptical
Optical Optical
PhotoPhoto
Photo Photo
0
20,000
40,000
60,000
80,000
FY2007(A) FY2008(A) FY2009(A) FY2010(F)
Net Sales
8,2007,5138,5857,802Commercial
33,80029,42228,93825,345Photo
11,00012,95625,01435,056Optical
107.1%
68,204
91.7%
62,537
79.8%
49,892 53,000Total
106.2%YoY* (A):Actual (F):Forecast
53,00049,892
62,53768,204
37.2%46.3%
59.0% 63.8%
51.4%40.0% 26.0% 20.7%
11.4% 13.7% 15.0% 15.5%
20FY2009 Financial Results
Ⅱ-6. FY2010 OP Forecast by Business Segment(millions of yen)
Commercial Commercial Commercial
Optical Optical
Photo
Photo
Photo
Photo
CommercialOptical Optical
0
2000
4000
6000
8000
10000
12000
FY2007(A) FY2008(A) FY2009(A) FY2010(F)
Operating Income
6,9004,1928,35110,638Total
8007261,344752Commercial
5,2003,4283,5004,988Photo
900373,5064,887Optical
4,6002,2956,1988,788Total
YoY
Elimination and/orCorporate
132.7%
(1,839)
200.4%37.0%70.5%
(2,300)(1,896)(2,153)
* (A):Actual (F):Forecast
2,295
6,198
8,788
4,600
46.9%
41.9%
81.8%
37.2%46.0% 42.0%
17.3%11.6%7.1% 16.1% 0.9%
13.0%
21FY2009 Financial Results
Ⅱ-7. Capital Investment & Depreciation
Net Income4,772
Net Income3,029
Net Income642
Net Income2,600
Amortization3,106
Amortization3,963
Amortization4,100
Amortization3,800
CapitalInvestment
1,774
CapitalInvestment
3,300
CapitalInvestment
4,772
CapitalInvestment
4,338
0
2,000
4,000
6,000
8,000
Amortization 3,106 4,100 3,963 3,800Net Income 4,772 3,029 642 2,600Capital Investment 4,338 4,772 1,774 3,300
FY2007(A) FY2008(A) FY2009(A) FY2010(F)
* (A):Actual (F):Forecast
(millions of yen)
22FY2009 Financial Results
Ⅱ-8. Research & Development
3,052 3,2222,753
3,300
6.2
5.55.2
4.5
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
R&D 3,052 3,222 2,753 3,300
Ratio 4.5 5.2 5.5 6.2
FY2007(A) FY2008(A) FY2009(A) FY2010(F)
(%)
*R&D cost/Net sales ratio
* (A):Actual (F):Forecast
(millions of yen)
23FY2009 Financial Results
Ⅱ-9. Outlook for Cash Dividends
46.1%
50.00
25.00
25.00
ActualFY2008
40.0050.00Total
170.9%29.6%DividendPayout Ratio
25.00
15.00
ForecastFY2009
35.00
15.00
ActualFY2007
Year End
Interim
(yen)
24FY2009 Financial Results
169.19
108.41
23.41
94.71
7.6
1.9
8.9
14.3
15.2
8.7
11.5
4.7
0
100
200
300
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
EPS 169.19 108.41 23.41 94.71
ROE 14.3 8.9 1.9 7.6
ROA 15.2 11.5 4.7 8.7
FY2007(A) FY2008(A) FY2009(A) FY2010(F)
(%)
ROE=Net Income/Net assets (average for FY)ROA=Ordinary Income/Total assets (average for FY)
(Yen)
1) Key Performance Measures
Ⅱ-10. Referential Data
* (A):Actual (F):Forecast
25FY2009 Financial Results
Actual FY2009
Total
EuroUSD
EffectExchange Rate
(4,090) Million Yen
(1,470) Million Yen
(2,620) Million Yen
Net Sales
(1,830) Million Yen--
(1,290) Million Yen
(540) Million Yen
Operating Income
152.65Yen
103.47Yen
ActualFY2008
130.38Yen
93.65Yen
ActualFY2009
Total
Euro
USD
One yen change impact for FY2010Exchange Rate
340Million Yen
70Million Yen
270Million Yen
Net Sales
60 Million Yen-
60 Million Yen
-
Operating Income
125Yen
90Yen
AssumptionFY2010
Forecast FY2010
2) Impact of Exchange Rate Fluctuation
Ⅱ-10. Referential Data
26FY2009 Financial Results
Ⅲ.Mid-Term Strategy
27FY2009 Financial Results
Ⅲ‐2. Mid-Term Management Goals for FY2012
Ⅲ-1. Corporate Tagline
Net Sales: ¥68.3 billion
Operating Income: ¥6.9 billion(Operating Income ratio 10.1%)
28FY2009 Financial Results
Ⅲ-3. Strategy Towards FY2012 by Segment
1) Photographic Products
SP AF10-24mm F/3.5-4.6 Di Ⅱ
(Model B001)
AF18-270mm F/3.5-6.3 Di II VC
(Model B003)
EISA 2009-2010 Award Winner
SP AF60mm F/2
Di ⅡMacro 1:1
(Model G005)
Ultra High Power Zoom Lens High-Speed Zoom Lens Ultra Wide-Angle ZoomLlens Macro lens
2012Mid-Term
Target
Tamron, as a pioneer of All-In-One Zoom lenses, leading the industry in the field of highpower zoom
Enhancing development of new lenses with the proprietary VC (Vibration Compensation)mechanism Aimed to win EISA award in a row
Penetrate emerging markets by establishing sales offices India (Jul, 09) Russia (Nov, 09)
Optimization of business management structure for OEM clients(cost efficiency, responsiveness as well as quality)
Net Sales : 41,600 million (60.9% of Net Sales)
SP AF17-50mm F/2.8 XR Di II VC (Model B005)
29FY2009 Financial Results
2) Optical Components
Ⅲ-3. Strategy Towards FY2012 by Segment
2012Mid-Term
Target
Diversify ultra compact zoom lens for cell phone camera into various DSC/DVCapplications (i.e. new pocket cam market.)
Secure profit through cost reduction efforts by enhancing in-house productioncapacity and promotion of local procurement in China.
Promote marketing of fixed focal length lens for higher mega-pixel imagers and ultracompact zoom lens by incorporating in-house high-precision plastic lens technologyalong with the development of VC system for cell phone camera applications.
Implementation of continued technological innovation as a leading supplier in theindustry to enhance company’s overall competence and value added business model
Net Sales : 12,000 million (17.6% of Net Sales)
Fixed focal length lens for high-mega pixel Ultra compact 3X zoom for 8 MP
30FY2009 Financial Results
3) Commercial / Industrial-use Optics
Ⅲ-3. Strategy Towards FY2012 by Segment
2012Mid-Term
Target
Expanding product lineup integrating VC technology
Strengthening the development of “Flat Field Mega Pixel” lens for CCTV cameras
Expanding product for CCTV camera lenses offerings both in lens and camera unit
Enhancing new business development in the field of automotive applications
Net Sales : 14,700 million (21.5% of Net Sales)
"Flat Field Mega Pixel LensSeries"
Automotive lenses
Certified ISO/TS16949
For Automotive Quality
Management
I n d o o r M i n i - D o m e C a m e r aWith Built-in High-Quality Vari-Focal Lens
31FY2009 Financial Results
4) New Business
Ⅲ-3. Strategy Towards FY2012 by Segment
2012Mid-Term
Target
Entering automotive head lamp business
Demand for LED headlamps will grow steadily
Entering far infrared rays optical system
Business alliance with NEC Avio Infrared Technologies Co., Ltd. - New product development fusing optical camera lens and infrared technologies
Entering panorama view camera market Entering new market by combining advanced optical technology for more than 180 degree angle of view and Image processing technology
32FY2009 Financial Results
Ⅲ-4. Issues on Mid-to Long-Term Management
1. Enhancing corporate governance based on CSR management system coupledwith internal control and risk management.
2. Implementing management streamline with speedy response and actions withprocess innovation across the company.
3. Strengthening company-wide resource investment focused on boosting sales ofTamron-brand interchangeable lenses for DSLR.
4. Innovating product realization process to further improvement of product qualityand reliability.
5. Achieving further reduction in cost by means of enhancing in-house productionratio of critical parts and components while deploying strategic logistics.
6. Expansion in mobile phone business, automotive business, far infrared rays opticalbusiness and new business.
7. Enhancement in R & D activities in core technology development revolving aroundoptics and taking proactive stance in IP strategy.
33FY2009 Financial Results
Disclaimer
1. The purpose of this material is to provide information on the“FY2009 Financial Results” and future business strategies. It isnot an offer or a solicitation of an offer to buy or sell securities.
2. This material and the information provided verbally in ourpresentation are based on the data that are obtainable at thetime of the presentation in compliance with our managementpolicies and certain premises that are deemed reasonable by us.
3. Please note that the actual results may sometimes differ from theforecasts contained herein due to various factors.
4. We are not liable in any way for any damages or losses incurredin connection with your use of any information or data containedherein or provided verbally in our presentation.