Optorun Co., Ltd.

Financial Results(3Q 2020）

Overview of 3Q FY12/2020 Results
1.
2.
3.
4.
5.
6.
7.
8.

Financial highlights (1Q-3Q total 2020)
Sales and Operating Income (Quarterly)
Orders Received (1Q-3Q total and quarterly)
Profit Margin (Quarterly)
Consolidated Balance Sheets (1Q-3Q total 2020)
Forecast for FY12/20 (revised September 25)
Response to the Covid-19 pandemic
New product models

11 Financial Highlights (1Q-3Q total/2020)
 Business environment: Large impact of Covid-19.
 Performance Highlights: Sales and profit margins declined YoY. Orders received from North American
smartphone manufacturer in the 1Q contributed to the YoY increase. Order backlogs also increased.
[Performance Comparison](¥100 million)

FY12/19【Sales by Business Segment】

FY12/20

3Q total

3Q totalYoY change

337

246

△27.0%

98(39.9%)42(17.3%)
55(22.5%)
56(22.9%)42(17.2%)△29.0%―△15.3%―△36.9%―△38.2%(After Tax profit Margin）

138(41.0%)50(14.9%)88(26.1%)
91(27.1%)
74(22.1%)

Research and developmentexpenses

22235.4%

Capital expenditures

17382.1%

Orders received

219232

5.8%

Order Backlog

27431013.2%

Net sales
Gross profit(Gross profit Margin)
SGA expenses(SGA expenses ratio)
Operating profit(Operating profit Margin)
Ordinary profit(Ordinary Profit Margin)
After Tax profit△43.2%―

Higher proportion of IoT and LEDrelated products in the product portfolio

22 Sales and Operating Profit (Quarterly)
 3Q Sales were down by 17.4% from 2Q. 60% of sales were from evaporation coater
equipment, and 30% from sputtering equipment.
 3Q operating profit was 1.8 billion yen.
 New model product sales also increased.
Sales of new equipment(¥100 million)
140.0

Net sales

Operating profit

139127

120.0
100.0

9790

△17.4%
80

80.070

68

60.0

41

40.0

32

20.0
0.0

20

1410210320

168

18

1719

2019/122019/122019/122019/122020/122020/122020/12

1Q

2Q

3Q

4Q

1Q

2Q

3Q

3

3 Orders Received (1Q-3Q total and Quarterly) Orders received (1Q-3Q total) increased 5.8% YoY. The impact of the Covid-19 on orders received in the3rd quarter, however, was not small.
(¥100 million)
250(¥100 million)
160

232
219
200

23427

1113

1120562183

14OtherLED

1931259121142080

IoT

100Camera lensSmart phone

129

50

39111
100

150

80
0141

140

67

60

40

200
2019/122020/12

3Q total

3Q total

2 3 541020302431

39 0.6

75

87

63

1
26

947828

1843

17214

2019/12 2019/12 2019/12 2019/12 2020/12 2020/12 2020/12
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4

4 Profit margin (Quarterly) The 3Q/2020 margin of gross profit margin and operating profit margin remained high at
39.3% and 23.6%, respectively.
 The improvement over the previous quarter was due to a decrease in COGS of sputtering
coater and a decrease in SG&A expenses (R&D expenses).
[Operating Profit Margin][Gross Profit Margin]
45.0%

30.0%

29.5%

42.5%

42.5%

40.7%

42.2%

40.0%

39.3%
25.7%

25.0%

39.6%

23.6%
23.6%

38.7%

35.0%

22.9%
20.0%

30.0%
25.0%

20.9%

19.9%

15.0%

20.0%
10.0%

15.0%
10.0%

5.0%

5.0%
0.0%

0.0%
2019/12 2019/12 2019/12 2019/12 2020/12 2020/12 2020/12
1Q

2Q3Q

4Q

1Q

2Q

3Q

2019/12 2019/12 2019/12 2019/12 2020/12 2020/12 2020/12
1Q

2Q

3Q

4Q

1Q

2Q

3Q

5

5 Consolidated Balance Sheets (1Q-3Q total 2020)
 Cash and deposits decreased by 5.0 billion yen (due to dividend payments, etc.), advances received
decreased by 3.0 billion yen (due to sales recording), and net assets increased by 1.7 billion yen.
(¥100 million)
600[Assets](¥100 million)
600

565

565
525
500

500

269

400

218

Cash and deposits

400

42200

151

Inventories

400525144139106Notes and accountspayable - trade

25

23

11

Short-term borrowings

Advances received

Other
Non-current assets

158

7885

95

200

348

365
Non-current liabilities

Total net assets

December 31, September 30,
2020

Other

100

37201927

300

Investment
securities
100

518

Notes and accounts
receivable
300[Liabilities and Net Assets]

0

December 31,

September 30,

2019

2020

6

6 Forecast for FY12/20 (revised on Sep 25)
 The prolonging impact of Covid-19 on the overall global economy has restrained new orders forour coaters that serve the highest end of film deposition technology needs.
 The U.S. economic sanctions on certain Chinese smartphone companies and the delay in thelaunch of new smartphones also negatively impacted our coater orders.
(¥100 million)

FY12/19
Actual results

FY12/20
Forecast

Net sales

428

370

Operating Profit

108

94

(25.4%)(25.4%)

Ordinary Profit

11097

After Tax profit

9171

Researchand development expenses

3129

Cash Dividends Per Share

60

50(Operating Profit Margin)

7

7 Response to the Covid-19 pandemic
1. Overall Policies
 We place top priority on the safety and health of all stakeholders, includingOptorun Group employees and their families, and implement thoroughinfection prevention measures.
2. Measures taken
 We have implemented thorough infection prevention measures(telecommuting, body temperature checks, and domestic/overseas businesstrip restrictions) at the Head Office and all overseas affiliates. At present,
there are no cases of infected employees.
 We are operating our sales and R&D at locations close to our customers in across-sectional manner. As part of countermeasure, for example, we
temporarily transfered some R&D projects between sites in accordance withresource availability in the pandemic to minimize delays.
88 New product models
Deposition system for optical communications (SPOC)
At our company’s inception in 1999, we developed coating system for depositing
the world‘s highest quality optical filters for optical communication multiplexing.
This time, we conducted a comprehensive design and performance review,
enabling the mass production of the high-performance optical thin films that meet
5G requirement. Received orders from several customers and began recording sales.

ALDThe world‘s first device that incorporates ALD (atomic layer deposition) into
optical deposition to explore new possibilities in deposition technology. The
technology is suited for film formation on complex surfaces such as those of wideangle smartphone camera lenses and mini/micro-LEDs. Already won orders fromseveral customers.

Medical X-ray FPD scintillator vacuum deposition system
We dramatically revamped our existing equipment for Csl film deposition toscintillators for X-ray FPD (Flat Panel Detector), and completed equipment suitablefor high image quality, low radiation dose, and mass production. Already observing
solid orders and sales flows.

Double-sided sputtering system (OWLS)
A single system capable of depositing thin-films on surfaces facing either upward,
downward, or both. Wide range use is expected for automotive sensors, electroniccomponents, optical components, etc. Received orders from multiple customers
and began recording sales.

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Disclaimer, Precautions, and Contact Information
This presentation was prepared by using assumptions based on economic, social and other conditions
as of November 10, 2020 and the reasonable judgments of management. The information in thispresentation may be revised without prior notice in the event of a change in the business climate orother events.
This presentation contains forward-looking statements. These statements incorporate assumptions thatreflect current outlooks, forecasts and risk factors. There are many uncertainties that may cause actual
performance to differ from these statements.
These risks and uncertainties include, but are not limited to, general industry and market conditions,changes in interest rates and exchange rates, and other general items associated with the Japanese
economy and global economy.
Even if there is new information, a future event or other items that affects the outlook, Optorun has noobligation to update or revise the forward-looking statements in this presentation.
Contact Information
E-mail:ir-info@optorun.co.jp

TEL:03-6635-9487
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