fy2011 financial results2012/02/08 · fy2011 financial results 5 Ⅰ-2. fy2011 summary sovereign...

FY2011Financial Results

February 8, 2012Tamron Co., Ltd. (Code: 7740)

2FY2011 Financial Results

ContentsⅠ. FY2011 Financial Results1. Business Briefing2. FY2011 Summary3. FY2011 Half-Year Financial Results4. FY2011 Financial Results5. FY2011 Results by Business Segment6. FY2011 Quarterly Results by Business

Segment

Ⅱ. FY2012 Financial Forecast1．FY2012 Forecast2. FY2012 Forecast (Sales/Operating income)3. FY2012 Forecast by Business Segment

1) Photographic Products2) Optical Components3) Commercial / Industrial-use Optics

Ⅲ. Financial Situation1. Financial Summary2. Capital Investment & Depreciation

3. Research & Development 4. Inventories/Liabilities with Interests5. Cash Flow Statement6. Outlook for Cash Dividends7. Referential Data

1) Key Performance Index2) Impact of Currency Exchange

Rate Fluctuations

Ⅳ. Mid-Term Strategy1. Corporate Tagline2. Mid-Term Management Goals for FY20143. Strategy Towards FY2014 by Segment

1) Photographic Products2) Optical Components3) Commercial / Industrial-use Optics

4. Enhanced Production System5. Issues on Mid-to Long-Term Management

P.4P.5P.6P.7P.8P.9

P.19P.20P.21P.22

P.23P.24

P.11P.12

P.13P.14P.15

P.26P.26

P.27P.28P.29P.30P.32P.17

P.18


Ⅰ．FY2011 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 : ¥58,507 million (FY2011)

Consolidated Number of Employees : 6,005 (As of Dec 31, 2011)

Consolidated Total Assets : ¥51,898 million (As of Dec 31, 2011)

Company Profile Photographic Products

Interchangeable lenses for cameras(SLR / MILC)

Optical Components

Camcorder lensesDigital still camera lensesCellular phone camera lensesOptical devices

Commercial / Industrial-use OpticsSurveillance camera lensesSurveillance cameraAutomotive camera lensesTest plates

Business Segment

Net Sales¥58,507 million

Net Sales¥58,507 million

PhotographicProducts

¥39,703 million

Optical Components

¥10,596 million

Commercial / Industrial-use¥8,207 million

Net Sales by Business Segment (FY2011)


Ⅰ-2. FY2011 Summary

Sovereign debt crisis in Europe affected the global economic recovery in the latter half of 2011.

Continued appreciation of Japanese Yen hitting the record high, the Great East Japan Earthquake and the unprecedented flood in Thailand all came together.

A favorable uptrend in interchangeable-lens camera market still prevailed despite those negative impacts.

Achieved an increased year-on-year sales and profit despite the adverse environment stated above.

Achieved record high sales and operating profits in the photographic lens business segment.

Both 18-270mm VC PZD(B008) and 70-300mmVC USD(A005) launched as 60th anniversary commemorative models, maintained strong sales

Business Environments

FY2011 Results

Topics Introduced the first Tamron-branded interchangeable lens for the non-reflex type cameras.

18-270mm VC PZD(B008) received EISA award (awarded 6 years in a row)

18-270mm VC PZD(B008) received the inaugural Lens award of the Year at Camera Grand Prix 2011.

Annual dividend of 50 yen per share anticipated, same as the previous year which included 5 yen60th anniversary commemorative dividend.

Wrote off treasury stocks.


Ⅰ-3. FY2011 Half-Year Financial Results（millions of yen）

(1.2)%

(439)

(671)

Change

8.8%

2,676

30,380

2nd HFY2011

＋1.6%

＋669

＋2,527

Change

10.7%

3,011

28,126

1st HFY2011

10.0%

3,115

31,051

2nd H FY2010

2,341OperatingIncome

9.1%Operating

Income Ratio

25,598

1st H FY2010

Net Sales

25,598

30,38028,126

31,051

2,341

3,011 3,1152,676

0

5 ,000

10 ,000

15 ,000

20 ,000

25 ,000

30 ,000

35 ,000

1H FY2010 1H FY2011 2H FY2010 2H FY2011

（Net Sales/million yen）

0

500

1 ,000

1 ,500

2 ,000

2 ,500

3 ,000

3 ,500

(Operating Income/million yen)Net SalesOperating Income


Ⅰ-4. FY2011 Financial Results（millions of yen）

-100.1%4103.1%1153,8043,8003,689Net Income

-

-

-

-

103.7%

-

101.6%

95.9%

1.15

(0.20)

-

0.7%

202

0.5%

87

(2,492)

ChangeVs. same period

forecast

Foreign Exchange Rate

--(2.9)%29.9%-32.8%Effective Tax Rate

--(7.99)79.8080.0087.79Yen-1USD

(790)104.2%2305,6875,6005,456Operating Income

--0.1%9.7%9.2%9.6%% of net sales

116.30

9.7%

5,476

56,650

FY2010

-

-

104.1%

103.3%

(5.15)

0.0%

225

1,856

ChangeVs. same period FY10

Ordinary Income

-111.15110.00Yen-1EURO

-9.7%9.0%% of net sales

-5,7025,500

(3,540)58,50761,000Net Sales

FX

ImpactFY2011

FY2011

*FCT


Ⅰ-5. FY2011 Results by Business Segment

14.8%

1,084

7,327

17.9%

2,615

14,592

(790)

(3,540)

-

-

(10)

(300)

-

(310)

(950)

-

(470)

(2,290)

Foreximpact

-7.1%-2.3%17.1%10.0%Operating Income Ratio

Commercial / Industrial-use Optics

-0.4%-(11.4)%6.5%6.1%Operating Income Ratio

OpticalComponents

-(1.4)%-2.9%14.9%16.3%12.0%Operating Income Ratio

Photographic Products

104.2%

103.3%

-

129.5%

112.0%

26.4%

72.6%

141.6%

114.3%

%

230

1,856

101

320

879

(1,924)

(3,995)

1,734

4,972

(c)-(a)

Change

%

Change

91.2%(792)8,2079,000N e t S a l e s

93.0%(803)10,59611,400N e t S a l e s

97.8%(896)39,70340,60034,731N e t S a l e s

5,456

56,650

(2,416)

4,173

ActualFY2010

(a)※New Standard

5,600

61,000

(2,600)

900

700

6,600

ForecastFY2011

(b)

5,687

58,507

(2,315)

87

(2,492)

284

504

(8)

(692)

(c)-(b)

Operating Income

N e t S a l e s 95.9%

1,404

691

5,907

ActualFY2011

(c)

-Elimination and/or Corporate

101.6%

156.1%Operating Income

Steady increase in sales and profits due to expansion in demand for security / surveillance

Total

Declined sales and profit due to stagnant and eroded market environment for DSC and DVC and halted production of majorcustomers by the flood in Thailand


Achieved record high sales and operating profit by increased sales in both own brand and OEM


（millions of yen）

※(New Standard) was replaced to segment standard as of Year 2011.


Ⅰ-6. FY2011 Quarterly Results by Business Segment（millions of yen）

89712,277

(511)

11.8%

1931,639

(0.4)%

(10)2,566

15.2%

1,2258,071

1QFY2011

2,11715,849

(559)

12.4%

2482,004

14.1%

3662,593

18.3%

2,06211,251

2QFY2011

8,2072,2842,279Net SalesCommercial /

Industrial-use Optics

1,404431531Operating Income

17.1%18.9%23.3%Operating Income Ratio

5,6878381,836Operating Income

58,50714,75415,626Net SalesConsolidated

(2,315)(584)(657)Eliminations and/or corporate

(8.3)%

(107)2,062

11.2%

1,16210,406

4QFY2011

6.5%

69110,596

14.9%

5,90739,703

AnnualFY2011

15.0%Operating Income Ratio

OpticalComponents

14.6%Operating Income Ratio

Photographic Products

3,374Net Sales

9,973Net Sales

506

1,456

3QFY2011

Operating Income

Operating Income


Ⅱ．FY2012 Financial Forecast


Ⅱ-1. FY2011 Forecast（millions of yen）

Foreign Exchange Rate

105.1%1954,0002,5001,5003,8041,6462,158Net Income

-(1.80)78.0078.0078.0079.8077.6482.01Yen-1USD

102.00

7.6%

2,200

8.3%

2,400

29,000

Forecast

1st H

FY2012

107.33

8.5%

2,593

8.8%

2,676

30,380

Actual

2nd H

FY2011

-(0.6)%9.1%10.3%9.7%11.1%OrdinaryIncome Ratio

115.06

3,108

10.7%

3,011

28,126

Actual

1st H

FY2011

103.5%1975,9003,7005,702Ordinary Income

102.00

10.6%

3,800

36,000

Forecast

2nd H

FY2012

-(0.2)%9.5%9.7%OperatingIncome Ratio

-(9.15)102.00111.15Yen-1EURO

109.0%5126,2005,687Operating Income

111.1%6,49265,00058,507Net Sales

(b)/(a)(b)-(a)

ChangeForecast

FY2012

(b)

Actual

FY2011

(a)


Ⅱ-２. FY2012 Forecast (Sales / Operating income)

1st H 1st H 1st H 1st H

2nd H2nd H 2nd H

2nd H

0

15,000

30,000

45,000

60,000

75,000

FY09 FY10 FY11 FY12

Net Sales

1st H

1st H1st H

1st H2nd H

2nd H2nd H 2nd H

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY09 FY10 FY11 FY12

Operating income

79.8%

49,892

28,239

21,653

113.5%

56,650

31,051

25,598

103.3%

58,507

30,380

28,126 29,0001st H

36,0002nd H

65,000FY

111.1%YoY

104.2%

9.7%

5,687

2,676

3,011 2,4002,341(29)1st H

3,8003,1152,3242nd H

37.0%

4.6%

2,295

237.8%

9.6%

5,456

9.5%% of net sales

YoY

FY

109.0%

6,200

56,650

49,892

65,000 6,200

2,295

5,45658,5075,687

*FCT


*FCT


1st H1st H 1st H

2nd H

2nd H2nd H

0

10,000

20,000

30,000

40,000

50,000

FY2010(A) FY2011(A) FY2012(F)

1st H

1st H1st H

2nd H

2nd H 2nd H

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY2010(A) FY2011(A) FY2012(F)

‐

34,731

19,124

15,607

114.3%

39,703

20,380

19,323 20,5001st H

25,0002nd H

45,500FY

114.6%YoY

141.6%

14.9%

5,907

2,619

3,288 2,7001,8611st H

3,8002,3122nd H

‐

12.0%

4,173

14.3%% of net sales

YoY

FY

110.0%

6,500

Expecting increases in sales for both own brand and OEM to renew record high sales and operating profit in two consecutive years

39,7035,907

45,500 6,500

（※New Standard）

34,7314,173


Ⅱ-3. FY2012 Forecast by Business Segment1) Photographic Products

* (A):Actual (F):Forecast

Net Sales Operating income（millions of yen）

（※New Standard）


1st H1st H 1st H

2nd H

2nd H2nd H

0

5,000

10,000

15,000

20,000

FY2010(A) FY2011(A) FY2012(F)

1st H1st H 1st H

2nd H

2nd H2nd H

0

500

1,000

1,500

2,000

2,500

3,000

FY2010(A) FY2011(A) FY2012(F)

‐

14,592

7,887

6,704

72.6%

10,596

5,437

5,159 4,3001st H

5,2002nd H

9,500FY

89.7%YoY

‐

17.9%

2,615

1,730

884

26.4%

6.5%

691

335

355 3001st H

1002nd H

4.2%% of net sales

YoY

FY

57.9%

400

Expecting to turning the trend around to a profit position despite the negative market situation with continued price erosion.

14,592

691

9,500

400

10,596

2,615

Ⅱ-3. FY2012 Forecast by Business Segment2) Optical Components

Net Sales（millions of yen）

Operating income

（※New Standard）（※New Standard）




1st H 1st H 1st H

2nd H2nd H

2nd H

0

2,000

4,000

6,000

8,000

10,000

12,000

FY2010(A) FY2011(A) FY2012(F)

1st H 1st H1st H

2nd H2nd H

2nd H

0

500

1,000

1,500

2,000

FY2010(A) FY2011(A) FY2012(F)

‐

7,327

4,040

3,287

112.0%

8,207

4,563

3,643 4,2001st H

5,8002nd H

121.8%

10,000FY

YoY

129.5%

17.1%

1,404

963

441 6005821st H

1,2005022nd H

18.0%14.8%% of net sales

YoY

FY

128.1%‐

1,8001,084

Expecting increase in year-on-year sales and profit due to strong performance of CCTV lens sales, posting the record high operating profit

8,207

1,084

10,0001,800

7,3271,404

Ⅱ-3. FY2012 Forecast by Business Segment3) Commercial / Industrial-use Optics

Net Sales（millions of yen）

Operating income

（※New Standard）（※New Standard）




Ⅲ．Financial Situation


Ⅲ-1. Financial Summary

1,77751,89850,120Total Liabilities and Shareholders’ Equity

67.8%

33,996

16,124

2,839

13,284

50,120

15,579846

8,109

14,588

10,996

FY2010(a)

1.8%69.6%Equity Ratio

Due to an increase in net income2,13736,134Total Shareholders’Equity

(360)15,764Total Liabilities

3873,227Total Long-Term Liabilities

Mainly due to a decrease of A/P(747)12,536Current Liabilities

1,77751,898Total Assets

98616,566Fixed Assets

1691,015Other Current Assets

Mainly attributable to flood in Thailand8979,007Inventories

Mainly due to a decrease in sales in Q4(2,053)12,535Notes and Accounts Receivable, trade

Mainly due to an increase in OCF1,77612,773Cash and Cash Equivalents

Main Factor for ChangeChange(b)-(a)

FY2011(b)



Net Income3,804

Net Income3,689

Net Income642

Net Income4,000

Amortization3,963

Amortization3,257

Amortization3,292

Amortization3,500

Capital Investment4,386




0

2,000

4,000

6,000

8,000

Amortization 3,963 3,292 3,257 3,500Net Income 642 3,689 3,804 4,000Capital Investment 1,774 3,102 4,386 6,100

FY2009(A) FY2010(A) FY2011(A) FY2012(F)

Ⅲ-2. Capital Investment & Depreciation




2,7533,292 3,304 3,500

5.45.65.85.5

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 2,753 3,292 3,304 3,500

Ratio 5.5 5.8 5.6 5.4

FY2009(A) FY2010(A) FY2011(A) FY2012(F)

Ⅲ-3. Research & Development（millions of yen）

* R&D cost/Net sales ratio


（％）


9,0078,109

7,051

1.7 1.71.8

0

2,000

4,000

6,000

8,000

10,000

0.0

0.5

1.0

1.5

2.0

2.5

Inventories 7,051 8,109 9,007

InventoryTurnover

1.7 1.7 1.8

FY2009 FY2010 FY2011

6,396 6,528 6,330

12.213.013.5

0

2,000

4,000

6,000

8,000

10,000

0.0

5.0

10.0

15.0

20.0

Liability withInterest

6,396 6,528 6,330

Loan-to-Asset 13.5 13.0 12.2

FY2009 FY2010 FY2011

Ⅲ-4. Inventories / Liabilities with Interests

Inventories Liabilities with Interests(millions of yen) (Month) (millions of yen) （％）



Ⅲ-5. Cash Flow Statement（millions of yen）

8,031

3,562

(4,679)(3,008)

553

3,351

(1,486)(890)

(5,000)

(3,000)

(1,000)

1,000

3,000

5,000

7,000

9,000FY2010 FY2011 Operating CF

Investing CF

Free Cash Flow

Financing CF

2.62

12,773

(1,486)

3,351

(4,679)

8,031

FY2011

553Free Cash Flow

FY2010

10,996Cash and Cash Equivalents at Year End

2.33Liquidity (Months)

(890)Cash Flow from Financing Activities

(3,008)Cash Flow from Investing Activities

3,562Cash Flow from Operating Activities


Ⅲ-6. Outlook for Cash Dividends

37.2%

50.00

※ 30.00

20.00

FY2010

36.1%

50.00

30.00

20.00

FY2011

170.9%

40.00

25.00

15.00

FY2009

-50.00Total

-46.1%Dividend Payout Ratio

-

-

FY2012(Forecast)

25.00

25.00

FY2008

Year End

Interim

（yen）

※Including ¥5 commemorative dividend


23.41

134.40 138.61 145.72

4.7

10.510.911.0

1.9

10.911.2 11.2

0.00

50.00

100.00

150.00

200.00

0.0

2.0

4.0

6.0

8.0

10.0

12.0

EPS 23.41 134.40 138.61 145.72

ROE 1.9 11.0 10.9 10.5

ROA 4.7 11.2 11.2 10.9

FY2009(A) FY2010(A) FY2011(A) FY2012(F)

1) Key Performance IndexⅢ-7. Referential Data

（Yen）（％）

ROE＝Net Income/Net assets (average for FY)ROA＝Ordinary Income/Total assets (average for FY)



Actual FY2011

(110)Million Yen(240)Million Yen--OthersTotal

EuroUSD

EffectExchange Rate

(3,540) Million Yen

(450) Million Yen

(2,850) Million Yen

Net Sales

(790) Million Yen--

(400) Million Yen

(280) Million Yen

Operating Income

116.30Yen

87.79Yen

ActualFY2010

111.15Yen

79.80Yen

Actual FY2011

Euro

USD

One yen change impact for FY2012Exchange Rate

(100)Million Yen

(400)Million Yen

Net Sales

(90) Million Yen

(60)Million Yen

Operating Income

102.00Yen

78.00Yen

Assumption FY2012

Forecast FY2012

2) Impact of Currency Exchange Rate FluctuationsⅢ-7. Referential Data


Ⅳ．Mid-Term Strategy


Ⅳ‐２. Mid-Term Management Goals for FY2014

Ⅳ-１. Corporate Tagline

Net Sales： ¥83.0 billion

Operating Income： ¥8.6 billion(Operating Income ratio 10.4%)


Ⅳ-３. Strategy Towards FY2014 by Segment

1) Photographic Products

2014Mid-Term

Target

Develop World No. 1 Lens as a lens manufacturer

・Awarded by EISA for the Lens of the year 6 consecutive years; the 1st Camera Grand Prix Lens Award

Strengthen sales organization in emerging markets by establishing subsidiaries

Strengthen development of interchangeable lenses for non-reflex cameras

Establishment of additional production facilities geared toward OEM business (Cost, Speed and Quality)

Target： 55.3 billion Yen ( 66.6% of Total Net Sales)

AF18-270mm F/3.5-6.3 Di II VC PZD (Model B008)

EISA Awards 2011-2012

Interchangeable lenses for Non-Reflex type cameras

18-200mm F/3.5-6.3 Di III VC（Model B011）

・Announcing the Tamron’s first high-power zoom for Sony mirrorless interchangeable-lens camera series

・Tamron concurs with the Micro Four Thirds System StandardThe first Camera GP 2011Lens of The Year.


2) Optical Components


2014Mid-Term

Target

Securing consistent orders by solidifying relationship with customers

Improvement in cost efficiency by virtue of renovating production system

Achieving better cost efficiency for LWIR (Long-Wave Infra Red) lenses

Continued technological challenges to be recognized as a leading supplier to bring benefits to clients and to build value-added business models

Target: 14.3 billion Yen (17.2% of Total Net Sales)

Original zoom lens DVC/DSC lenses Far-infrared camera lens


3) Commercial / Industrial-use Optics


2014Mid-Term

Target

Expansion in CCTV lens sales in Europe, the United Sates, China and Emerging Countries

Additions in product portfolio including Panorama Cameras, IP Mega-pixel and HD compliant lens models

Commercialization of lenses for TV video conference systems and other new industrial applications

Focus on automotive related business opportunities by setting up a new dedicated business unit

Target: 13.4 billion Yen (16.1% of Total Net Sales)

"Flat-Field Mega Pixel Lens Series"

Automotive camera lenses

“Surveillance Camera 180-View” with Fish-eye Lens integrated


Capable of handling the whole stream

line from lens polishing, mold injection to

final assembly

Supporting approx. 90 % of total unit

production

Number of employees：Approx 4,800

Ⅳ-4. Enhanced Production SystemTAMRON Production System

1997

Foshan, Guangdong / China

Owani/High Precision Molded Parts

1986

Hirosaki/Assembling

1969

Namioka/Lens Polishing & Coating

1984

Domestic production sites：３

“Mother Plants”Overseas production bases：

１→２For mass-production

2012(as planned)Hanoi, Vietnam

Approx 13,400㎡L a n d a r e a

Approx 2,000E m p l o y e e s

Approx 1 billion yenInvestment(2012)

2013(as planned)Start of Operation

Manufacture and sales of Optical Products

Primary Business

Expansion in production capacity

Enabling better cost efficiency

Diversification in facility locations mitigating risk factors


Ⅳ-4. Enhanced Production System

・Machining・Anodizing・Lens Polishing & Coating・Glass molding・AssemblingVietnam:OEMChina:TAMRON Brand

Hanoi

Noi Bai Industrial Zone Hanoi

Population: 650Average annual income:31.8 million VND (Hanoi)19.3 million VND (Vietnam)

Noi Bai International Airport

Thang Long Industrial Park


Ⅳ-5. Issues on Mid-to Long-Term Management

1. Enhancing corporate governance based on CSR management system coupled with internal control and risk management.

2. Pursuing improved quality assurance reliability and enhancing the qualityof customer service aimed at delivering higher customer satisfaction coupled with “Three-Day Turnaround” for repairs.

3. Aim to enhance brand recognition and sales expansion by establishing subsidiaries in growing markets, deploying strategic marketing.

4. Poised at materializing further cost reduction and to meet future demand increases by establishment of additional production facilities.

5. Promotion of new business development, pioneering more aspects of “New eyes for industry”

6. Enhancement in R & D activities in core technology development revolving around optics and taking proactive stance in IP strategy.


Disclaimer

1. The purpose of this material is to provide information on the “FY2011 Financial Results” 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 containedherein or provided verbally in our presentation.

fy2011 financial results2012/02/08 · fy2011 financial results 5 Ⅰ-2. fy2011 summary sovereign...

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