Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended December 31, 2019
(Based on Japanese GAAP)
February 13, 2020
Company name:

Optorun Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
6235
Representative:
Inquiries:

URL

http://www.optorun.co.jp

Representative Director and President
CFO,Director and Senior Managing Officer

Ihei Hayashi
Toshinori Takahashi

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 25, 2020
March 25, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 26, 2020
Yes

Holding of financial results meeting:

Yes

TEL

03-6635-9487(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2019 (from January 1, 2019 to December 31, 2019)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended December 31, 201942,822(4.3)
10,8791.8
11,031
0.3
9,101
17.5
Year ended December 31, 2018
44,763
34.1
10,69045.9
10,992
54.9
7,745
60.9

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
206.77
29.0
19.7
25.4
176.05
30.6
19.6
23.9

Diluted earnings per
share

Yen
216.69187.64

Year ended December 31, 2019Year ended December 31, 2018
(2) Consolidated financial position

Total assets
As of December 31, 2019
As of December 31, 2018

Net assets

Equity ratio

Millions of yen
56,50955,644

Millions of yen
34,81928,062

Cash flows fromoperating activities
Millions of yen
16,232
9,572

Cash flows frominvesting activities
Millions of yen(2,431)(2,964)

Net assets per share
%
61.6
50.4

Yen
821.07676.21(3) Consolidated cash flows

Year ended December 31, 2019Year ended December 31, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,358)26,969(10,053)
15,7402. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2018Year ended December 31, 2019Year ending December 31, 2020
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

0.00
0.00

–
–

55.00
60.00

55.00
60.00

2,281
2,544

29.3
27.7

9.0
8.0

–

0.00

–

60.00

60.00

1

27.7

3. Forecast of consolidated financial results for the year ending December 31, 2020 (from January 1, 2020 to December 31, 2020)
Net sales
Full year

Millions of yen
46,200Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen
7.9
12,000
10.3
12,000
8.8
9,200
1.1
216.94

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2019

44,358,000 shares As of December 31, 2018

44,358,000 shares

Number of treasury shares at the end of the period
As of December 31, 2019

1,950,731 shares As of December 31, 20182,874,031 shares

42,003,594 shares Year ended December 31, 2018

41,281,116 shares

Average number of shares during the period
Year ended December 31, 20192

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2018

As of December 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

15,740,508
6,837,100

26,969,840
4,252,961

Work in process
Raw materials and supplies

20,148,171
4,339,278

11,103,107
4,070,363

Other
Allowance for doubtful accounts

1,497,420(420,067)

1,148,282(350,710)

Total current assets

48,142,411

47,193,845

2,316,887(748,960)

2,268,836(775,581)

Buildings and structures, net

1,567,926

1,493,254

Machinery, equipment and vehicles
Accumulated depreciation

1,199,032(890,416)

852,714(619,878)

308,615

232,836

824,670
64,704

833,833
111,744

Accumulated depreciation(47,641)(62,773)

Leased assets, net

17,062

48,971

Construction in progress

1,941

21,921

315,925(193,011)

358,004(225,111)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Land
Leased assets

Other
Accumulated depreciation
Other, net

122,913

132,8932,843,130

2,763,710

Intangible assets

65,55265,516

Investments and other assets
Investment securities

803,193

795,174

Investments in capital
Deferred tax assets

2,224,446
1,273,191

4,825,976
605,295

Total property, plant and equipment

Other
Total investments and other assets
Total non-current assets
Total assets

3

292,177

259,618

4,593,008

6,486,065

7,501,691

9,315,292

55,644,102

56,509,137

(Thousands of yen)
As of December 31, 2018

As of December 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

1,652,570

2,735,267

553,361
190,992

401,691
86,864

Lease obligations
Income taxes payable

12,213
1,143,493

21,588545,000

Advances received
Provision for bonuses

20,108,899
440,585

13,988,698
318,218

104,926–

Provision for product warranties
Other

649,249
1,066,249

501,8171,226,510

Short-term loans payable
Current portion of long-term loans payable

Provision for bonuses for directors (and otherofficers)

Total current liabilities

25,922,541

19,825,656

Non-current liabilities
Long-term loans payable

206,864

120,000

Lease obligations
Deferred tax liabilities

26,9481,010,931

45,155
1,078,794

Provision for retirement benefits for directors (andother officers)

257,274–Retirement benefit liability
Other138,453
18,389147,514472,759

Total non-current liabilities

1,658,861

1,864,222

27,581,403

21,689,879

Shareholders' equity
Capital stock

400,000

400,000

Capital surplus
Retained earnings

9,193,505
18,980,845

9,513,800
25,801,100

Treasury shares(188,971)(128,263)

28,385,379

35,586,637

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

4,539(338,123)–(767,379)

Total accumulated other comprehensive income(333,584)(767,379)

10,903–28,062,699

34,819,258

55,644,102

56,509,137

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

Net sales

44,763,006

42,822,203

Cost of sales

27,326,975

25,125,374

Gross profit

17,436,031

17,696,828

Selling, general and administrative expenses

6,745,590

6,817,692

Operating profit

10,690,441

10,879,135

40,32657,012Rent income
Foreign exchange gains

111,618
280,009108,469
61,595

Subsidy income
Other

28,57034,01047,34024,598

Total non-operating income

494,536

299,016

33,62010,792

Share of loss of entities accounted for using equity
method147,793

122,770

Other

10,946

13,543Non-operating income
Interest income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on change in equity

192,360

147,105

10,992,617

11,031,046

10,634

2,305–

456,570

10,634

458,876

Loss on retirement of non-current assets
Impairment loss

17,446
18,632

2,324–

Loss on liquidation of subsidiaries and associates

219,077–

Total extraordinary income
Extraordinary losses

255,157

2,324

Profit before income taxes

Total extraordinary losses

10,748,094

11,487,597

Income taxes - current

2,901,332

1,720,861

Income taxes for prior periods
Income taxes - deferred

322,920(223,214)–665,235

Total income taxes

3,001,039

2,386,096

Profit7,747,055

9,101,501

1,184

(371)

7,745,870

9,101,872

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2018

December 31, 2019

ProfitOther comprehensive income

7,747,055

9,101,501

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(911)
86,078(4,539)–Foreign currency translation adjustment
Share of other comprehensive income of entities(867,447)(476,378)(50,825)

47,123

accounted for using equity method(833,105)(433,794)

Comprehensive income

Total other comprehensive income

6,913,949

8,667,706

Comprehensive income attributable toComprehensive income attributable to owners of parent

6,912,940

8,667,599

1,008

107

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended December 31, 2018
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

400,000

Retained earnings

9,052,807

Total shareholders'equityTreasury shares

12,871,295(226,755)

22,097,346

Changes of items during
periodDividends of surplus(1,636,320)(1,636,320)

Profit attributable toowners of parent

7,745,870

7,745,870

Purchase of treasury
shares
Disposal of treasury
shares140,698

(77)

(77)

37,861

178,560

Net changes of items
other than shareholders'equity–Total changes of items
during period
Balance at end of current
period–140,698

6,109,550

37,783

6,288,033

400,000

9,193,505

18,980,845(188,971)

28,385,379

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuation difference
on available-forsale securities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income5,451(86,078)

580,148

499,521

Non-controllinginterests

9,895

Total net assets

22,606,763

Changes of items during
periodDividends of surplus–(1,636,320)

Profit attributable toowners of parent–

7,745,870

Purchase of treasury
shares–(77)

Disposal of treasury
shares–178,560

Net changes of items
other than shareholders'equity(911)

86,078(918,272)(833,105)

1,008(832,097)

Total changes of items
during period(911)

86,078(918,272)(833,105)

1,008

5,455,936

Balance at end of current
period4,539–(338,123)(333,584)

10,90328,062,699

7

Fiscal year ended December 31, 2019
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

400,000

Retained earnings

9,193,505

Total shareholders'equityTreasury shares

18,980,845(188,971)

28,385,379

Changes of items during
periodDividends of surplus(2,281,618)(2,281,618)

Profit attributable toowners of parent

9,101,872

9,101,872

Disposal of treasury
shares321,186

Change in ownershipinterest of parent due totransactions with noncontrolling interests

60,708

(891)

(891)

Net changes of items
other than shareholders'equity–Total changes of items
during period
Balance at end of current
period–320,295

6,820,254

60,7087,201,258

400,000

9,513,800

25,801,100(128,263)

35,586,637

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuation difference
on available-forsale securities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income4,539(338,123)(333,584)

Non-controllinginterests

Total net assets

10,90328,062,699

Changes of items during
periodDividends of surplus–(2,281,618)

Profit attributable toowners of parent–

9,101,872

Disposal of treasury
shares–381,895

Change in ownershipinterest of parent due totransactions with noncontrolling interests

–

(891)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period381,895(4,539)(429,255)(433,794)(10,903)(444,698)(4,539)(429,255)(433,794)(10,903)6,756,559–(767,379)(767,379)–

34,819,258

8

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2018

December 31, 2019

Cash flows from operating activities
Profit before income taxes

10,748,094

11,487,597

Depreciation
Increase (decrease) in allowance for doubtful accounts

251,925
238,777

250,089(69,357)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for

34,685(109,853)(59,997)(104,926)

580,691(147,431)

13,3339,060

directors (and other officers)
Increase (decrease) in provision for product warranties
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Interest income

21,937(257,274)(40,326)(57,012)Interest expenses
Foreign exchange losses (gains)

33,620561,696

10,792
163,468

Share of loss (profit) of entities accounted for using
equity method

147,793

122,770–(456,570)(4,098,543)

2,284,558

Loss (gain) on change in equity
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories

27,9589,164,189

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received(5,018,690)
8,851,090

1,179,777(6,132,101)

Decrease (increase) in consumption taxes refund
receivable

1,768,797

169,715

Other, net(726,670)

979,815

Subtotal

13,336,174

18,487,307

Interest income received

40,32657,012

Interest expenses paid
Income taxes paid

(30,759)(3,773,690)(10,792)(2,300,897)

Net cash provided by (used in) operating activities

9,572,051

16,232,629(381,423)(149,513)

29,671(24,032)

9,884(23,918)(788,669)(1,569,330)(146,436)(2,140,172)–(230,504)

89,220(70,620)(2,964,287)(2,431,556)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments for investments in capital
Collection of loans receivable
Payments of loans receivable
Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2018

December 31, 2019

Cash flows from financing activities
Net increase (decrease) in short-term loans payable(8,400,000)(156,150)

Repayments of long-term loans payable
Repayments of lease obligations(190,992)(8,870)(190,992)(23,412)Purchase of treasury shares
Proceeds from exercise of share options–
178,560(77)
303,045(1,632,572)(2,279,091)

subsidiaries that do not result in change in scope of
consolidation–(11,902)

Net cash provided by (used in) financing activities(10,053,874)(2,358,581)(707,182)(213,158)

Net increase (decrease) in cash and cash equivalents(4,153,292)

11,229,332

Cash and cash equivalents at beginning of period

19,893,800

15,740,508

Cash and cash equivalents at end of period

15,740,508

26,969,840

Cash dividends paid
Payments from changes in ownership interests in

Effect of exchange rate change on cash and cash
equivalents

10