Optorun Co., Ltd.

Earnings Announcement
For the Third Quarter of the Fiscal YearEnding December 2018
November 14, 2018

Financial Highlights (Consolidated)






Big increases in sales and earnings
Higher sales of smartphone and LED optical thin film coaters and strong growth of sales of coaters forsurveillance camera lenses and IoT applications (biometric authentication, automotive components,semiconductors)
3Q sales include sales planned for the 4Q or afterward because product acceptance by customers weresooner than expected. Sales in the second half of 2018 are expected to be as planned and about the same
as first half sales.
In the smartphone sector, the needs for new technologies of coloring back side,3D function and advanced
camera function are strong among manufacturers in North America, China and Korea. The timing of neworders depends on how soon global economy becomes risk free from U.S.-China trade friction.
Anticipate growth in the camera lens, IoT, LED and other market sectors to continue to contribute to sales
and earnings(Million yen)

9M FY12/2017

9M FY12/2018

GrowthNet sales

21,29838,040+78.6%

Operating profit

5,492

10,416+89.7%

Operating margin

25.8%

27.4%

Ordinary profit

5,593

10,913+95.1%

Profit attributable toowners of parent

3,655

7,952+117.6%―1Net Sales by Categories
The expansion of applications for optical thin film

Increasing diversity of users of optical thin film equipment in the smartphone industry in North America, China,
Korea and other regions
Increasing use of this equipment for lenses for surveillance and other cameras, IoT applications involving
biometric authentication, automotive components and semiconductors, LEDs and other products

4%

4.4%
6.1%
5.1%

8%

9%

20.3%

Full year FY2017

33,385
million yen

74.2%

9M FY12/2018

38,040 48.7%
million yen

Smartphone
Camera lense
IoTLED

19.8%

Other2Forecast for FY12/2018 (Consolidated)
 Sales: Sales are consistent with the plan for 2018
 Earnings: Expect 2018 earnings to be significantly higher than the forecast announced inFebruary because of a reduction in the cost of sales ratio resulting from higher manufacturing
efficiency and measures to hold down the cost of raw materials(Million yen)PreviousForecast

Revised
Forecast(announced Feb. 2018)(announced Nov. 2018)

ChangeNet sales

43,80043,8000.0%

Operating profit

8,100

10,700+32.1%

Operating margin

18.5%

24.4%

―Ordinary profit

8,200

11,200+36.6%

Profit attributable toowners of parent

5,700

7,200+26.3%
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Shareholder Distributions
Increased the 2018 dividend forecast from ¥42 to ¥50
50.0

Dividend per share(Yen)
45.0

Dividend Policy

40.0
35.0

The policy is maintain sufficient funds
for R&D activities, strengthening
manufacturing operations, starting new
モルガン・スタンレー
businesses
and other requirements andto use remaining funds as much as
possible for shareholder distributions.
The goal is consistent dividend
payments with a consolidated payout
ratio of about 30%.

30.0
25.0

50

20.0

40

15.0
10.0
5.0

6.7

9.3

0.00
2015/122016/122017/122018/12(E)* There was a 1-to-1,000 share split on March 18, 2017 and a 1-to-3 share split on October 13, 2017.
Earnings per share in 2015, 2016 and 2017 have been adjusted to reflect these stock splits.

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