OPTEX.CO., LTD. Consolidated Annual F.Y.2013 Presentation. February 17, 2014 in Tokyo

Transcription

1 OPTEX.CO., LTD. Consolidated Annual F.Y.2013 Presentation February 17, 2014 in Tokyo

2 1.Summary of Annual F.Y.2013 (Consolidated) 2.Progress of Business Strategy 3.Mid-Term Objectives 2

3 1. Summary of Annual F.Y.2013 (Consolidated) 3

4 Overview Consolidated Sales (Unit: million yen) 4

5 Overview Consolidated Sales (Quarterly performance) (Unit: million yen) 2011 result USD 80 GBP 128 EUR result USD 80 GBP 126 EUR result USD 98 GBP 153 EUR ,502 20,699 23,582 year-on-year : Security sensors+20%, Automatic door sensors+12%, FA+6%, EMS +14% 5

6 Overview Consolidated Profit (Unit: million yen) 6

7 Quarterly performance - Consolidated Profit - Selling, general and administrative expenses (Unit: million yen)

8 Factors of change in Operating Income (Unit: million yen) Gross operating income Selling and administrative Expenses Factor4 Factor5 Factor6 Factor7 Exchange Rate +1,260 Exchange Rate -693 Factor3 Personnel cost Increase ,398 Factor1 Sales Increase +125 Factor2 COS% Down +534 Expense Increase -292 R&D Expense Decrease +33 2,

9 ,212 1,375 1,640 1,989 1, ,371 1,514 1,259 2, Free Cash Flows (Unit: million yen) (Unit: million yen) Cash Flows of Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Cash and Cash Equivalents 9

10 Business by Segment - Sensing Products Business Security Sensors (Unit: million yen) 8,075 9,916 11,879 Net sales: 11,879 million yen +20% year-on-year; +1,963 million yen Japan: Sales to security companies and orders for outdoor sensors for large-scale critical facilities improved steadily. Overseas: Sales of outdoor sensors for ordinary homes, supported by the recovery of exports for Southern Europe among other factors, remained steady. (Heightened sense of unease among wealthier segments because of widening economic disparity) 10

11 Business by Segment - Sensing Products Business Automatic Door Sensors (Unit: million yen) 3,224 3,491 3,923 Net sales: 3,923 million yen +12% year-on-year; +432 million yen Japan: Sales were strong beginning from 3Q in conjunction with construction industry activity. Overseas: Safety features of OPTEX s sensors were evaluated positively by leading North American and European automatic door manufacturers and sales expanded briskly. 11

12 Business by Segment - Factory Automation Business (Unit: million yen) 4,565 4,407 4,665 Net sales: 4,665 million yen +6% year-on-year; +258 million yen Japan: Sales rose steadily, driven by the recovery in capital investment demand in the logistics and machine tools and automobile-related industries. Overseas: Sales of general-purpose devices for Europe were slack because of that region s delayed economic recovery. 12

13 Currency Ratio Sales: Yen and local currencies * Local currencies: Dollar, pound, euro, won, yen, etc. Sales: Local currency Sales: Local currency Pound 12% Sales breakdown by currency Euro 15% 2013 China production plants, etc. Parts procurement: Dollars Yen 52% Cost breakdown by currency Dollar/pound 54%, yen 46% $ Dollar 18% Sales: Local currency Sales: Local currency 13

14 Exchange sensitivity 1.Assumed exchange rate (Unit: yen) 2012 Result 2013 Result Rate of change 2014 Plan rate USD % 100 GBP % 165 EURO % Impact on our full-year performance by a-yen appreciation (Unit: million yen) Net Sales Operating Income Net Sales Operating Income USD GBP EURO

15 2. Progress of Business Strategy 15

16 Market development Matrix of the business development Development of newly emerging markets Latin America ASEAN, India Russia, China Entry into new business fields Electric railway and public transport-related Vehicle detector etc. Expansion of core businesses Continuous introduction of new products Development for large-scale outdoor facilities Expansion of share with leading customers Development of new applications Security lighting business Energy conservation, lighting control business Access control business Product development 16

17 Expansion of Core Businesses - Global Security Market Trend - (Unit:US Million $) Stable growth of intrusion detection at a 5.0% annual rate 17 出所 :World Market for Intruder Alarms 2011 Edition (IMS research)

18 Sensing automatic doors Sensing security Expansion of Core Businesses - Strengthen lineup and seek added value through rollout of new products - FY2013 Bring 22 new product models to market, mainly in security sensors For large-scale, critical facilities Battery operated outdoor sensors General purpose lowprice indoor sensors For emerging markets Low-cost microwave sensors Wireless sensor systems for Southeast Asia Highperformance indoor sensors For major automatic door manufacturers in Europe and the U.S. Swing door sensors Security camera auxiliary floodlight projectors Outdoor sensors for large-scale facilities Hybrid sensors for sliding doors Design touch switches General purpose zone High-performance swing door sensors Tailgating prevention sensors High-value-added differentiated submarkets 18

19 Development of New Applications - Spread of Security Cameras - 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Security camera sales will grow at about 13% annually, centered on Network (IP) cameras. However, lighting is indispensable for IP cameras! Network Security Cameras Analog Security Cameras (Unit: US Million $) Source: World Market for Intruder Alarms 2011 Edition (IMS Research) 19

20 Development of New Applications Construction of a security lighting market CCTV camera lighting Improved imaging precision by surveillance cameras (for critical facilities) Sensor Light Sensors detect intruders, warning issued by light (for parking lots) 照明なし 10% 点灯 ( 待機時 ) Light off Light on 10% Lighting (Standby) 100% Lighting (Detecting People) 20

21 Development of Emerging Markets - Present State of the Security Market - Security needs in emerging countries and resource-rich nations remain robust (Unit:US Million $) Source:World Market for Intruder Alarms 2011 Edition (IMS research) CAGR America % -6.6% 2.6% 4.5% 5.0% 6.5% 6.6% 5.9% Brazil % -0.2% 17.7% 18.0% 18.3% 18.3% 15.9% 14.2% EMEA % -15.0% -1.5% 0.8% 1.7% 3.0% 4.0% 4.2% Russia % -10.5% -0.1% 0.8% 1.8% 4.7% 6.7% 6.6% Asia % -2.3% 5.5% 6.4% 7.8% 9.2% 10.1% 10.3% China & Hong Kong % -0.8% 12.0% 11.9% 13.2% 14.3% 14.6% 14.4% Shingapore % -3.8% 4.7% 5.2% 6.1% 6.8% 7.1% 6.9% Taiwan % -5.1% 1.7% 3.3% 3.8% 4.4% 4.7% 4.6% Indian Sub-Continent % -0.8% 6.4% 9.1% 12.4% 14.1% 15.9% 16.1% Japan % -3.8% -0.2% 0.0% 0.6% 3.1% 4.6% 5.1% Total % -9.8% 0.6% 2.3% 3.8% 5.4% 6.1% 6.0% 21

22 Development of Emerging Markets Brazil India Established subsidiary in Sao Paulo in December 2012 Established a joint venture firm near Delhi in December 2012 A group company has started expanding sales of security products for large-scale critical facilities. Orders received for high-end security projects (oil refineries in Colombia, Mexico / airport in Mexico ). Year-on-year sales growth +45%. Large orders expected in approach to 2016 Olympic Games. Contract signed with local company SIer to develop custom specifications for government projects. Launching door-to-door sales route to expand sales of home security products. Developing new products to match local culture and customs. 22

23 Source: a&s JAPAN Jan/Feb 2014 (Ref.) Top 12 sales growth leaders among the Security 50 companies Ra nk Company Product group Total revenue (USD million) Reven ue growth (%) 2012 gross profit (%) 1 INFINOVA Video surveillance AVIGILON Video surveillance DAHUA TECHNOLOGY Video surveillance TKH GROUP (SECURITY SYSTEMS ONLY) Multiple DYNACOLOR Video surveillance HIKVISION DIGITAL TECHNOLOGY Video surveillance 1, HDPRO Video surveillance SYNECTICS Video surveillance SAFRAN (SECURITY PRODUCTS ONLY) Multiple 1, , SUPREMA Access control TYCO SECURITY PRODUCTS Multiple OPTEX (SENSING PRODUCTS BUSINESS) Intrusion detection

24 3.Mid-term Business Goals 24

25 2014 management policies Create the New Continue building the base for the new OPTEX Create businesses that will enable OPTEX to achieve an average annual growth rate in consolidated sales of at least 15% 25

26 Our solid organization We will construct a matrix of businesses and regions, promote globalization and localization Global Sales Headquarters Corporate Business Management Headquarters Corporate Business Strategy Headquarters Security Equipment & Systems Entrance Automation Equipment & Systems New Businesses EMEA HQ (Europe, the Middle East and Africa) Product Product Product The Americas HQ (North America, Latin America) Product Product Product Asia Sales Div. Product Product Product Domestic Sales Div. Product Product Product 26 26

27 Structural Changes 1. Move to an organizational structure that groups the global sales divisions into the four regional domains of Europe/Middle East/ Africa, The Americas, Asia/Pan Pacific, and Japan 2. Achieve and sustain competitive advantage for higher earning through the marketing, product planning, and development, which are vertically correlated at the business unit level 3. Promote strategic plans for the whole group of Optex and create the new business opportunity based on the mid- and long-term standpoint. 27

28 Mid-term Business Goals (Unit:million Yen) Sales Operating Income Ordinary Income Net Income ROE ,582 2,108 2,628 1, % ,700 2,600 2,700 1, % 2015 Record-high consolidated ordinary income (over 4.1 bn) Consolidated net sales over 30 bn 28

29 OPTEX CO., LTD. *The data utilized in this presentation was based upon our assumption and estimated information. The actual business results might be different from the numbers we have shown you here because of various factors.