Optorun Co., Ltd.
Financial Results(２Q 2020）

● Financial Highlights (H1 2020)● Net Sales (H1 2020)● Orders Received and Order Backlogs (H1 2020)● Operating Profit (H1 2020)● Net Sales (Q2 2020)● Orders Received and Orders Backlog (Q2 2020)● Operating Profit (Q2 2020)● Financial Position● Cash Flow
● Business Outlook

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Financial Highlights (H1 2020) Net sales declined YoY, largely due to the fact that the sales completion in the previous year has turned this term a period forreceiving new orders from the North American smartphone manufacturer. Sales to Chinese customers performed fairly well
despite certain negative impact from COVID19.
 Sales for camera lense application were affected by the overall customer bear sentiment for new capital investment.
 Successfully received an order from a U.S. IT company for newly launched ALD equipment as part of our ongoing efforts toaddress the emerging needs for thin-film deposition in new application such as wide-angle lenses and mini LEDs.
 IoT area (automotive, semiconductors, medical devices, AR/VR, optical communication network) saw overall sales increase.
 Accelerating R&D efforts in the bio-sensor field through joint development with major universities in Japan.
 Achieved progress in LED area with new model equipment.
 New models played a large role in the overall results, accounting for 41% of orders received and 15% of sales.
 Orders received increased by JPY900mn (5%) from H1 2019, resulting in an order backlog increase by JPY4.2 bn.

[Comparison of business results]
FY12/19
H1(Million yen)

FY12/20
H1YoY changes a l e s26,677

16,590△37.8%

Operating profit7,3963,652△50.6%（Operatingm a r g i n ）(27.7%)(22.0%)―Ordinary Profit

7,262

3,952

△45.6%

After Tax profits

5,994

2,884

△51.9%

Research anddevelopmente x p e n s e s

1,478

1,710

15.7%

N e t

【Net Sales by Categories】

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Net Sales (H1 2020)
Net Sales(Million yen)
30,00026,677
21,811
20,00016,59010,0008,971

02017/122018/122019/122020/12

H1 total

H1 total

H1 total

H1 total

 Sales from Vacuum Evaporation Coaters(evaporator) and Sputter Coaters accountedfor 50% and 40% respectively of total sales.
 Secured sales in smartphones for backglass
casting (for decoration) and camera modules.
 Camera lense-related sales include
applications for surveillance and SLRcameras.
 IoT-related sales’ ratio surged. Sales of newequipment for optical networks and X-ray
FPD scintillators for medical use inparticular are worth mentioning.
 Sales for LED chips were also strong.
 Started to observe materialization of
tangible orders/sales of a variety of new
products, including horizontal sputtering,double-sided sputtering, and equipments forLED and automotive applications.
3Orders Received/Order Backlog (H1 2020)
Orders received and backlog(Million yen)Orders received

50,00040,000Order Backlog

46,29836,39834,75530,53230,00023,93920,00020,19817,982

18,877

10,0000
2017/12

H1 total

2018/122019/122020/12

H1 total

H1 total

H1 total JPY900mn increase (+5%) YoY.
 Orders consist of 50% evaporatorsand 40% sputtering equipment.
 In smartphones, orders for high-end
camera modules, glass chassis
decoration, and 3D cameras increased.
 Orders for IoT are coming fromdiverse areas, including automotive,biometric, semiconductor, medicaldevice, optical networks, AR/VR, etc..
In particular, witnessing strong
customer traction in new types ofequipment for optical networks.
 Acquired orders for new ALD
equipment.
 LED-related orders were also solid.
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Operating Profit (H1 2020)
Operating profit(Million yen)
10,000

27.7

9,000

24.9

8,000
7,000

30.0

7,396

22.0

19.5

20.0

5,425

6,000
5,000

15.0

3,652

4,000

10.0

3,000
2,000

25.0

1,750

5.0 Operating profit margin: 22.0%(down 5.7% from H1 2019)
 Cost ratio was unchanged YoY.
・ The consolidated CGS-Sales ratio
remained favorable at 59.9%.
 The SG&A ratio rose 4.7% YoY due tosales decline.
R&D expenses were JPY1.7bn, up by
JPY230mn (+15.7%) YoY, with an aim toaccelerate technology development tocapture market needs.

1,00000.0
2017/12

H1 total

2018/12

H1 total

2019/12

H1 total

2020/12

H1 total

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Net Sales (Q2 2020)
Net Sales(Millionyen)
18,00015,00013,975
12,701

12,000

9,752

9,071

9,000

7,073 For camera lenses, sales of IR-cut filters
and in-vehicle camera modules weresecured.

6,837

6,000

3,00002019/12 2019/12 2019/12 2019/12 2020/12 2020/12
1Q

2Q

3Q

4Q

1Q

 Q2 Sales were up by 42% from Q1, with
evaporators accounting for 50% andsputtering equipment 40% of total sales.
 Solid sales for backglass casting (fordecoration) and camera-related
products (IR-cut filters and back-glass
surface deposition) for smartphones.

 Overall sales were strong in the areas ofIoT, optical communication networks ,medical applications, and LED.

2Q

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Orders Received and Order Backlog (Q2 2020)
Orders received and backlog
Orders received(Millionyen)
50,000Order Backlog

38,20340,00032,04332,46830,53230,00034,75527,43520,00014,103
10,00012,573

11,191
6,790

6,304

3,976
0

 Significant impact of global economic
downturn was felt this quarter, withorders declined by 50% from Q1.
However, the rate was +5% for the six
months from the beginning of the year.
 Secured orders from Chinese smartphone
manufacturers.
 IoT-related products enjoyed solidincoming orders, particularly in the
optical communications, automotive,biometric, AR/VR and medical equipment
where new model equipment, including
horizontal and double-sided sputtering
tools played significant roles.
 New order for ALD equipment were also
received for the first time.

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

2Q

3Q

4Q

1Q

2Q

7

Operating profit (Q2 2020)
 Operating profit margin: 20.9%

Operating profit(Millionyen)
6,000Operating income

32.0%

29.5%
25.7%

5,000

4,000

4,126
3,269

3,000

Operating income margin
(%)

28.0%

22.9%23.6%

20.0%

19.9%

16.0%

2,077
2,000

1,000020.9% 24.0%

1,405

1,615

2,037

12.0%

 CGS/Sales ratio increased by
3.5% from the previous quarterdue to lower sales proportion of
sputtering equipment among thesales mix.
 SG&A expenses were JPY1.7bn(decreased by 0.8% from Q1).

8.0%
4.0%
0.0%

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Financial Position(Million yen)
December 31, 2019
AmountCurrent assets
Cash and deposits
Notes and accounts
receivable - trade
Inventories
Allowance for doubtful
accounts
OtherNon-current assets
Total assets
Current liabilities
Notes and accounts
payable - trade
Short-term interestbearing debt
Income taxes payable
Advances received
Other
Non-current liabilities
Long-term interestbearing debt
Other
Total Liabilities
Total Assets
Total liabilities and net
assets47,193
26,9694,252
15,173
△350
1,148
9,315
56,50919,825
2,735
510
545
13,988
2,046
1,864
165
1,699
21,68934,81956,509

Ratio

83.5%
47.7%
7.5%
26.9%
△0.6%
2.0%
16.5%
100.0%
35.1%
4.8%
0.9%
1.0%
24.8%
3.6%
3.3%
0.3%
3.0%
38.4%
61.6%
100.0%

June 30, 2020
AmountRatio

Changes

47,472
24,5204,107
17,894
△347
1,298
9,501
56,974
20,496
4,166
487
1,059
12,846
1,936
1,865
121
1,743

83.3%
43.0%
7.2%
31.4%
△0.6%
2.3%
16.7%
100.0%
36.0%
7.3%
0.9%
1.9%
22.5%
3.4%
3.3%
0.2%
3.1%

278
△2,449△145+2,720+2+150
+186
+464
+670
+1,431

22,361
34,612

39.2%
60.8%

＋671

56,974100.0%＋464△22+514△1,142△110+0△43+44・ Cash and deposits decreased due todividend payments
・ Increase in inventories due to increased
shipments

・ Decrease in advances received due torecording of sales△2069

Status of Cash Flow(Million yen)
Total for Q2 2019
AmountTotal for Q2 2020
AmountChange

CF from sales activities

14,232695△13,537

CF from investment activities△1,079△461618

CF from financial activities△2,389△2,529△140

Of cash and cash equivalents
Translation adjustments△414△154260

Net increase (decrease) in cash
and cash equivalents

10,348△2,449△12,797

Cash and cash equivalents at
beginning of year

15,74026,969

11,229Cash and cash equivalents atend of year

26,08924,520△1,569Main reasonsDue to an increase in inventories
From the acquisition of tangible fixedassets
By paying dividends

10Business Outlook The spread of COVID-19 has been affecting our overall group business. Due to the downturn of
the world economy, new capital investment has been restrained, resulting in order decrease.
 On the other hand, demand for general-purpose optical thin films is on a recovery trend, which
could turn into a higher demand for the high-end optical thin films we deal with over time.
 Since it will take some time to determine the outlook for our future business, we are
maintaining our 2020 financial forecast. In the event that it becomes necessary to revise theforecast in light of the future business environment and business performance, the Company
will promptly disclose such revisions.
(Million yen)

FY2019 Actual

FY2020 Forecast

YoY change

Net Sales

42,822

46,200+7.9%

Operating Profit

10,87912,000+10.3%

Operating margin

25.4%

26.0%

Ordinary profit

11,031

12,000+8.8%

Net income attributableto owners of the parent

9,101

9,200+1.1%

Research anddevelopment expenses

3,172

3,300+4.0%
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Disclaimer, Precautions, and Contact Information
The information contained in this document has been prepared on the basis ofgenerally accepted economic and social conditions as of August 6, 2020, and certain
assumptions that we judged to be reasonable. However, the information contained inthis document may be changed without notice due to changes in the businessenvironment.
The materials and information provided in this publication include so-called forwardlooking statements. These forward-looking 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, generaldomestic and international economic conditions such as interest rates and currency
fluctuations.
We are not obligated to update or revise the forward-looking information contained inContact Information
this report even
if new information or future
events occur.
E-mail:ir-info@optorun.co.jp
TEL:03-6635-9487
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