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
3FY2011 Financial Results
Ⅰ.FY2011 Financial Results
4FY2011 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)
5FY2011 Financial Results
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.
6FY2011 Financial Results
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
7FY2011 Financial Results
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
8FY2011 Financial Results
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
98.7%Operating Income
Achieved record high sales and operating profit by increased sales in both own brand and OEM
89.5%Operating Income
(millions of yen)
※(New Standard) was replaced to segment standard as of Year 2011.
9FY2011 Financial Results
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
10FY2011 Financial Results
Ⅱ.FY2012 Financial Forecast
11FY2011 Financial Results
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)
12FY2011 Financial Results
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
(millions of yen)
*FCT
13FY2011 Financial Results
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
※(New Standard) was replaced to segment standard as of Year 2011.
Ⅱ-3. FY2012 Forecast by Business Segment1) Photographic Products
* (A):Actual (F):Forecast
Net Sales Operating income(millions of yen)
(※New Standard)
14FY2011 Financial Results
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)
※(New Standard) was replaced to segment standard as of Year 2011.
* (A):Actual (F):Forecast
15FY2011 Financial Results
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)
※(New Standard) was replaced to segment standard as of Year 2011.
* (A):Actual (F):Forecast
16FY2011 Financial Results
Ⅲ.Financial Situation
17FY2011 Financial Results
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)
(millions of yen)
18FY2011 Financial Results
Net Income3,804
Net Income3,689
Net Income642
Net Income4,000
Amortization3,963
Amortization3,257
Amortization3,292
Amortization3,500
Capital Investment4,386
Capital Investment6,100
Capital Investment3,102
Capital Investment1,774
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
* (A):Actual (F):Forecast
(millions of yen)
19FY2011 Financial Results
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
* (A):Actual (F):Forecast
(%)
20FY2011 Financial Results
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) (%)
* (A):Actual (F):Forecast
21FY2011 Financial Results
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
22FY2011 Financial Results
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
23FY2011 Financial Results
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)
* (A):Actual (F):Forecast
24FY2011 Financial Results
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
25FY2011 Financial Results
Ⅳ.Mid-Term Strategy
26FY2011 Financial Results
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%)
27FY2011 Financial Results
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.
28FY2011 Financial Results
2) Optical Components
Ⅳ-3. Strategy Towards FY2014 by Segment
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
29FY2011 Financial Results
3) Commercial / Industrial-use Optics
Ⅳ-3. Strategy Towards FY2014 by Segment
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
30FY2011 Financial Results
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
31FY2011 Financial Results
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
32FY2011 Financial Results
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.
33FY2011 Financial Results
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.