OPTEX.CO., LTD. Consolidated Annual F.Y.2014 Presentation

Transcription

1 OPTEX.CO., LTD. Consolidated Annual F.Y.2014 Presentation

2 1.Summary of Annual F.Y.2014 (Consolidated) 2.Progress of Business Strategy 3.Medium-Term Action Plan And Earnings Forecast 2

3 1. Summary of Annual F.Y.2014 (Consolidated) 3

4 Summary of Annual F.Y.2014 : Consolidated Sales (Unit: million yen) 4

5 Summary of Annual F.Y.2014 : Consolidated Sales (Quarterly performance) (Unit: million yen) 2012 Result USD 80 GBP 126 EUR Result USD 98 GBP 153 EUR Result USD 106 GBP 174 EUR ,699 23,582 25,678 year-on-year : Security sensors +10%, Automatic door sensors +8%, FA +11% (Detailed information on each segment after P10.) 5

6 Summary of Annual F.Y.2014 : Consolidated Profit (Unit: million yen) 6

7 Quarterly performance - Consolidated Profit - Selling, general and administrative expenses (Unit: million yen) 1Q earnings were higher because of a surge in demand at our subsidiary Giken Trastem Co., Ltd. ahead of the consumption tax hike. Profits dropped in the 4Q due to an increase in selling, general and administrative expenses. 7

8 Factors of change in Operating Income (Unit: million yen) Factor4 2,108 Impact of Exchange Rate +844 Factor1 Sales Increase +366 Factor2 Factor3 COS% Down +350 Personnel cost Increase -473 Factor5 Expense Increase -25 Factor6 New joint venture company -198 Factor7 Impact of Exchange Rate ,558 Gross operating income Selling and administrative Expenses

9 524 1,212 1,375 1,818 1,640 1, ,514 1,893 2,436 1, Free Cash Flows (Unit: million yen) Cash Flows of Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities (Unit: million yen) Cash and Cash Equivalents 9

10 Business by Segment - Sensing Products Business Security Sensors (Unit: million yen) 9,916 11,879 13,013 Net Sales:13,013million yen, year-to-year comparison +10% +1,134 million yen (Japan +2%, North America+9%, Europe+13%, Asia+7%, Others +15%) Japan : Sales for security companies increased steadily although sales for large-scale critical facilities tapered off. Overseas:Sales of outdoor sensors for residences for Southern Europe 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) 3,491 3,923 4,245 Net Sales:4,245 million yen, year-to-year comparison +8% +322 million yen (Japan+2%, North America+18%, Europe+18%) Japan:There was a reactionary decline following last-minute orders ahead of the consumption tax hike in the 2 nd quarter, but orders have since been steady. Overseas:Safety features of OPTEX s sensors were evaluated positively by leading North American and European automatic door manufacturers and OEM sales remained strong. 11

12 Business by Segment - Factory Automation Business (Unit: million yen) 4,407 4,665 5,180 Net Sales:5,180 million yen, year-to-year comparison +11% +515 million yen (Japan+13%, Europe+2%, Asia +60%) Japan : Sales remained stable, boosted by invigorated capital investment in the logistics, electronic components and automobile industries. Overseas:Sales for China rose steadily in conjunction with the full-scale operations at our China joint venture company. 12

13 Exchange sensitivity 1.Assumed exchange rate (Unit: yen) 2013 Result 2014 Result Rate of change 2015 Plan rate USD % 115 GBP % 175 EURO % Impact on our full-year performance by a-yen depreciation (Unit: million yen) Net Sales Operating Income Net Sales Operating Income USD GBP EURO

14 Dividends, Dividend Payout Ratio and ROE Dividends and dividend payout ratio (Unit: yen/%) ROE/Shareholders equity ratio (Unit: %) Note: Implement a 5 yen interim period commemorative dividend for the 35th anniversary of the Company s founding 14

15 (Ref.) Currency Ratio Sales: Yen and local currencies * Local currencies: Dollar, pound, euro, won, yen, etc. Sales: Local currency Sales: Local currency Pound 18% Sales breakdown by currency Euro 13% 2014 China production plants, etc. Parts procurement: Dollars Yen 49% Cost breakdown by currency Dollar/pound 47%, yen 53% $ Dollar 17% Sales: Local currency Sales: Local currency 15

16 2.Progress of Business Strategy 16

17 Sensing Products Business Security Sensors - Global Security Market Trend Stable growth of intrusion detection at a 5.0% annual rate Security camera sales grow at about 13% annually, centered on Network (IP) cameras. (Unit:US million $) (Unit:US million $) 8,000 7,000 Network Security Cameras Analog Security Cameras 6,000 5,000 4,000 3,000 2,000 1, Source:The World Market for Intruder Alarms 2013 Edition (IMS research) 17

18 Sensing Products Business Security Sensors - Global Security Market Trend The market in the US is large, while Asia has the strongest growth rate The major targets are residences and commercial facilities (Unit:US million $) (Unit:US million $) Source:The World Market for Intruder Alarms 2013 Edition (IMS research) 18

19 Sensing Products Business Security Sensors - Business Picture by Category Category Core Businesses Ideal business picture (1) Demonstrate strength in outdoor sensing through pairing with cameras (2) Contribute to greater efficiency of video surveillance in medium to large-scale critical facilities market with laser scanning sensors New Applications Establish OPTEX in the market as the vehicle detection sensor company Sensor cameras Laser scanning sensors Vehicle detection sensor 19

20 Sensing Products Business Security Sensors - Core Business Strategy (1) Spread proactive outdoor crime prevention in home and light commercial markets! Challenge to Visual Verification (Onsite response after intruder is confirmed by image) Cloud Sensor cameras 20

21 Visual Verification The Los Angeles Police Department has a higher crimearrest ratio with security systems that use security cameras than with security systems that only use sensors. Number of Number of Arrest Ratio Calls Arrests to Calls Silent Robbery Alarm 3, % audible Burglary Alarm 91, % Silent Burglary Alarm 1, % Panic Alarm 6, % Video Verified Alarm % Total in , % Data from LA County Sheriff 2011 Source: RSI Technologies 21

22 Sensing Products Business Security Sensors - Core Business Strategy (2) Steadily conclude agreements for projects and expand them with laser scanning sensors! Laser scanning sensors Data center Water treatment plant Power plant 22

23 Projects of image Layer 0 Outside Perimeter Layer 3 Facility Protection Important Facility Layer 1 Perimeter Line Fiber Defender TM Photo beam Layer 2 Outdoor Field Zone Outdoor PIR LINK Cameras 23

24 Sensing Products Business Security Sensors - Security Systems for Mega Solar Operations launched at 1,110 of the 8,780 certified facilities nationwide (as of March 31, 2014). With a spate of copper wire thefts at seven facilities in Shiga, there was a struggle to prevent crime when no one was around, and total damages reached 33 million (Kyoto Shimbun from October 24, 2014). We expect this business field to grow! 24

25 Sensing Products Business Security Sensors - New Applications Vehicle Detection Strategy Develop products targeting global market! Domestic fee parking lot case study Vehicle lock plate surveillance market is 1.2 billion a year Parking meter sensor demonstration experiments have been conducted in North America Market size is 5 million units 25

26 Ref.) 2014 Top Security 50 Source:a&s ASIA/Nov Ranking 13 Ranking company Headquarters Product Group 2013 (in US$Million) 1 1 Honeywell Security US Multiple Bosch Security Systems Germany Multiple Hikvision Digital Technology China Video Surveillance Safran (Security Products Only) France Access Control ASSA ABLOY(Global Technologies) Sweden Access Control & Locks Dahua Technology China Video Surveillance FLIR Systems (Thermal Vision & Measurement) US Video Surveillance Axis Communications Sweden Video Surveillance Samsung Techwin Korea Multiple Tyco Security Products US Multiple NEW Allegion (Electronic Products & Access Control) US Access Control & Locks Aiphone Japan Access Control TKH Group (Vision & Security Systems) Netherlands Multiple Nedap Netherlands Access Control NICE Systems (Security Solutions) Israel Multiple Avigilon Canada Multiple Optex (Sensing Products Business) Japan Intrusion Detection Infinova US Video Surveillance VIVOTEC Taiwan Video Surveillance Tamron (Commercial & Industrial) Japan Video Surveillance

27 Sensing Products Business Automatic door Sensors - Business Picture by Category Become No. 1 in the world in the automatic door and shutter sensor markets! Category Automatic door Sensors Ideal business picture Strengthen measures for European and American automatic door manufacturers and actively propose OEM sliding/swinging door sensors Shutter Sensors Expand business domain from high-speed shutters to include light/heavy shutters Automatic door sensor Shutter sensor 27

28 Factory Automation Business - Medium -Term Action Plan and Strategy Action Plan Expansion of domestic business Aggressive roll-out overseas Cooperation with competitors Strategy Expand sales to automobiles, electronic components, and foods, medical products and cosmetics with displacement sensors at the core Sales expansion via Chinese subsidiary (details on next page) Expand sales of direct-coupling system of OPTEX displacement sensors and Mitsubishi sequencers nationwide through collaboration with Mitsubishi Electric Displacement sensor Direct-coupling system with Mitsubishi sequencers 28

29 Factory Automation Business - Establishment of a Joint Venture company (Distributor) in China Beijing: 8 people (Unit: Million yen) Sales Plan Shanghai: 13 people Guangzhou: 27 people Subsidiary Overview Company name: Guangzhou Optex Industrial Automation Control Equipment Co., Ltd. Business description: Purchase and sales of Sensor related products, control equipment, thermometers and related components Capitalized: US$ 3 million (Approximately 300 million) Employees: 48 people Established: November 2013 [Purpose of Establishment] 1. To expand market share in Chinese market (promote price strategy and enhance sales promotions/aftersales service) 2. Switch from distributor sales to subsidiary-based sales policy (directly controlled by parent company) 3. Acquire orders from Japanese companies (including replacement demand for products for which features were included in specifications in Japan) 29

30 Sensing Products Business - Others Sony Assurance adopts OPTEX driving behavior sensing technology in new type of automobile insurance that is a first in Japan -Joint development of special equipment for automobile insurance- Sales launch: Mid-February

31 PHYD (driving characteristic-based coverage) insurance PAYD Pay As You Drive Driving distance-related coverage PHYD Pay How You Drive Driving characteristic-based coverage Driving distance Driving characteristics (Abrupt braking, sharp steering, etc.) Short distances: Insurance premiums reduced Long distances: Insurance premiums increased Safe driving: Insurance premiums reduced Dangerous driving: Insurance premiums increased Telematic-type automobile insurance (with data transmission function) has begun to spread in the U.S. and Europe, and is projected to expand in the future. 31

32 Overview of drive counter specialized device to measure driving characteristics SMOOTH COUNT Smooth continuous frequency and average frequency Can be counted smoothly =Enables operation without sudden acceleration/abrupt braking Insurance result Insurance premiums refunded according to points if there are 60 or more points F Note: Begins measuring when installed in mounting case Battery operated, no special setup required Simply attach it and it s ready for use Can be installed easily by anyone because there s no need to connect it to the vehicle. No running cost because no data transmission is used. Device can be mailed/returned in an envelope. Driving characteristics : Status of acceleration/deceleration Drive counter : Registered trademark of Sony Assurance, jointly developed by Optex and Sony Assurance 32

33 Acceleration OPTEX's proprietary driving behavior measurement technology Technology for recording only dangerous driving Device sensing accuracy is of utmost importance for evaluating driving correctly. Drive Counter distinguishes operating conditions, such as whether sudden behavior is the result of driving operations or road unevenness, based on composite information that adds temporal elements to the forward/backward, right/left and up/down information obtained from the acceleration sensors. Unevenness Sudden braking Slope Recording standard Time 33

34 3. Medium-Term Objectives 34

35 Management Policies Slogan 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% Mid-term management objectives FY2015 Strive to achieve consolidated net sales of 30 billion yen! FY2017 Create businesses and forge an earnings structure to ensure plan consolidated net sales of 40 billion yen and plan consolidated operating income of 7.5 billion yen are certain! To make consolidated sales of 50 billion yen in FY2019 a reality 35

36 2015 Management philosophy Focus on accelerating new product development and contribute greatly to sales starting next fiscal year! Segment Number of products developed in 2014 Number of products to be developed in 2015 Security Sensors 4 18 Automatic Door Sensors 2 5 Others 3 6 Total 9 29 ivision+ Camera Auxiliary Lighting General purpose Automatic door sensors drive counter 36

37 Earnings Forecast Sales Operating Income Ordinary Income Net Income (Unit:million yen) ROE ,678 2,558 3,043 1, % ,600 3,400 3,500 2, % Sales growth rate +15% +33% +15% +27% +1.4P 37

38 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.