Earning Presentation
1st Quarter 2023

Optorun Co., Ltd.
May 12, 2023
1AgendaI

FY2023 1st Quarter Results

IITopics

IFY2023 1st Quarter Results3

Q1 results (key points)[Overview]

Sales of new equipment, ALD equipment in particular, are progressing as planned.
Sales were strong, particularly for our new-type products, not only in smartphones, but also in a wide
range of fields such as automobiles, semiconductors and LEDs, which contributed to thediversification of sales fields.
Despite the slow recovery in the overall world smartphone market, we received new orders for
products for touch panels and for other applications from non-North American customers in addition
to camera module application.

[Sales] ¥9.0 billion (up 77.1% year-on-year) | New-type equipment ratio: 37.1%

 Smartphones: Increased sales of ALD equipment supporting advanced functionality of cameras.
 IoT: Sales recorded in wide-ranging areas in automotive sector, including in-vehicle cameras andheads-up displays.

[Operating Income] ¥2.6 billion (up 253.1% year on year) High-margin ALD equipment contributed. SG&A expenses were within budget.

[ Net Income] ¥1.4 billion (an increase of 133.0% year on year) ¥800 million loss on revaluation of foreign exchange forward contracts for hedging (amid thecontinued appreciation of the dollar, the positive effect on net sales exceeds the loss on revaluation offoreign exchange forward contracts).

[Orders received] ¥9.5 billion (down 30.7% year on year) | New equipment ratio: 9.6%

 Multiple orders for smartphones: Touch panels and camera modules.
 IoT: Orders received for automotive dashboards, onboard cameras, and heads-up displays.
 ALD equipment: expected to win orders in the semiconductor and other fields going forward.

1

Financial Highlights(Unit: 100 million yen)

Year ended December
Q1 2022

Year ended December
Q1 2023

YoY change

51

90

77.1%

355

21

45

115.3%-(41.5%)(50.5%)--

726

253.1%

86(14.5%)(28.8%)-(24.2%)

11

18

64.4%

86

(21.6%)(20.0%)-(24.2%)6

14133.0%

62(11.8%)(15.5%)-(17.5%)

6

10

44.3%

34(13.6%)(11.1%)-(9.6%)

66

6.3%

56Orders received

13895-Order Backlog

368374△30.7%Net Sales
Gross profit
Operating income
Ordinary income
Net Profit
R&D expenses
CAPEX(NOTE) % in parentheses represents the percentage of sales

1.7%

Year ended December
2023 forecast2Quarterly Sales by Segment•••

Steady growth in IoT, especially for automobiles
The percentage of new-type equipment rose to 37.1%. Besides ALD equipment, sales to automobiles
and LEDs were also strong.
Semiconductor-optic-fusion related sales totaled approximately ¥1.6 billion.
(Unit: 100 million yen)
Smart phone

140

Camera lens

IoT

LEDOtherALD

New equipment(excluding ALD）

120112

100
80
60
40
2080
7468
9433

02021
1Q

31917
2352021
2Q

1183
54

8
720

191924 39

70

30

19288

18
10
8

3

24

431 15

27

92021
3Q

2021
4Q

29
951
5
4
15
0.5 17
25 11
52022
1Q

18
12952

35
530

2022
2Q

20

13
919
258 225172022
3Q

90

2

3295

30

50 20
8
112 33
1335
192022
4Q2023
1Q
3

Quarterly changes in profitability
Achieve gross margin of more than 50% in line with the increase in the ratio of new-type equipment
Operating Profit

Gross Profit margin

Operating Profit margin(Unit: 100 million yen)

60.00%

50.00%

70

46.30%

50.50%

48.10%
44.30%

42.50%

40.90%

42.37%

41.50%

42.08%

60

50

40.00%

28.80%

30.40%
30.00%
24.30%
20.00%

30

19.70%

20
14.50%

10.00%
16
0.00%

26.15%

24.80%

21.80%

2021 1Q

17

2021 2Q

2213

2021 3Q

4025

2022 1Q

26

10127
2021 4Q

12.68%

292022 2Q

2022 3Q

2022 4Q

2023 1Q

04

Quarterly changes in orders received by field•••

Acquired large orders for smartphones’ touch panel application.
IoT products for onboard cameras and heads-up displays are strong.
Orders for semiconductor-optical-fusion related products totaled approximately ¥1.8 billion.
(Unit: 100 million yen)
Smart phone

Camera lens

IoT

LED

Other

Foreign exchange impact

200500New equipment(excluding ALD）

188
30

150
100ALD9176
933 3722730
107339818 27329 161063
39
922 22017 14712110920
164 5163 24
26138
16
15034
11323869 17212314790 64
676

161024
3 92

95

19102

58

72

25
815 1012 15-8916
31549 9 4
5-53-50-27-100
2021
1Q

2021
2Q

2021
3Q

2021
4Q

2022
1Q

2022
2Q

2022
3Q

2022
4Q

2023
1Q
5

Consolidated Balance Sheets
Liabilities and net assets

Assets
900

829

900

847

800

700

349

339

700

Cash and deposits

600

600

500

79

73

400

300

200

100

0

204

20

227
21

175

186

End of December
2022

End of March
2023

847

829

800

Notes and accounts
payable500

Inventories

400

47(Unit: 100 million yen)

46
4190

209

42
2341
26

4Notes and accounts
payableShort-term loans
payableAdvances received
Other Current liabilities

Other current assets

Non-current assets

300

521

519

Non-current liabirities

200Net assets
1000

End of December
2022

End of March
2023

6

IITopics

10

Investment progress
Head Office
Tsurugashima

 Advanced R&D, including semiconductor opticalfusion, electronic devices, etc. (scheduled tocommence in the summer)

Hanoi area, Vietnam

Optorun Semiconductor SystemCorporation Shanghai

 Production and R&D of ALD equipment andother new technology equipment (scheduledfor completion around autumn).
 Equipment design, installation, maintenancerepair, and machining of parts. (scheduled tostart around autumn).
 Production of equipment is also in sight for thefuture by examining the local supply chaindevelopment.

7Market trends
Growing demand for advanced 3D and semiconductor-optical-fusion technologies
are observed in areas such as; sophistication of smartphone cameras,
 high-performance automotive displays and an growing number of cameras andsensors per car, advancement of AR/VR technology (creating large need for deposition).
Smartphone

Despite the worldwide decline in replacement demand, strong demand for
upgrading the functionality of high-end models still continues.
Camera modules: Trend toward larger lens size and higher rates of incorporation ofnew camera functions

Automobiles

In-vehicle Cameras: Increase in the ratio of cameras installed per vehicle due toincreased demand for safety devices and improved auto operation level
Automotive Display: Touch Panel
LIDAR / milli-wave radar:
Expansion due to an increase in the number of vehicles equipped with the ADAS
system and sophistication of automatic operation.

AR/VR

Head-mounted displays: Expansion centered on individuals.
Estimated demand for VR games and B-to-B VR training etc..
Smartglass: growth expected both in consumer and commercial markets.
For hands-free operation and support for remote operations.

8Thin-film deposition for smartphones
Decorative membrane(Evaporation, sputtering)
3D decorative membrane(Sputtering, ALD)

Flame-decorating
membrane(Sputtering)

IR-cut filter(Evaporation)

Black membrane(Sputtering)

Lens
Antireflection film
(Evaporation, ALD)

Hard anti-reflection, antismudge, anti-glarecoating(Sputtering, Etching)

The need for further sophistication will continue
to grow in a variety of smartphone functions.
9Thin-film deposition for automobiles
Bandpass filter,
reflective film
(Evaporation, Sputtering)

Antireflection film
(Evaporation, Sputtering)

Bandpass filter(Deposition, Sputtering)

Augmented reflection film
(Evaporation)

Antireflection film
(Evaporation, Sputtering)

Decorative membrane(Evaporation, Sputtering)

Enhancing sensing functionality pushes
up overall demand for film- deposition.

10

Thin-film deposition for AR/VR
3D camera(Sputtering)

Half mirror(Evaporation)

Micro display(ALD, Etching)

Diffraction grating
Wave Guide(ALD, Etching)
Lens surface(Evaporation, Sputtering)Technological innovation in AR/VR will besupported by cutting-edge high-precision / 3D thinfilm deposition technologies.

11Mid-term vision

Expansion of business fields from Optical, Semiconductor-optics fusion, and further
to electronic devices.
Contribution to smart-society continue to be our mission.

Semiconductor
optical fusion

Optical■Optical components■Image sensor

Electronic Devices■New energy

・Decorative membrane, lens and mirror
・Optical filter

・Solar cells
・Lithium battery・Power device■AR/VR Device
・Smart glass
・Head mount display■Smart Phone
・Camera modules and chassis
・Display and optical sensor■Automobiles
・Instrument panel
・ADAS display sensor■Communication Device
・BAW/SAW
・RF Device■Photoelectron
・Mini LED
・Micro LED
・LD/VCSEL■MEMS Device
・Micro mirror
・Gyrocompass scope
・Acceleration sensor

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Disclaimer, Precautions, and Contact Information
The information contained in this document has been prepared on the basis of generally accepted economic and social
conditions as of May 11, 2023, and certain assumptions that we judged reasonable. However, it may be changed without
prior notice due to changes in the business environment and other reasons.
The materials and information provided in this publication include so-called forward-looking statements. These forwardlooking statements are based on current expectations, projections and risky assumptions, and contain uncertainties that
may cause results that differ materially from these statements.
These risks and uncertainties include general industry and market conditions, general domestic and international
economic conditions such as interest rates and currency fluctuations.
We are not obligated to update or revise the forward-looking information contained in this report even if new
information or future events occur.

[Contact]
E-mail:ir-info@optorun.co.jp TEL:03-6635-9487

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