Optorun Co., LtdEarnings Announcement
1Q 2020

May 12, 2020

●Financial Highlights●Net Sales (1Q20)●Orders Received and Order Backlog(1Q20)●Operating Profit (1Q20)●Balance Sheet●Forecast for FY2020

1Financial Highlights

 The effects of the COVID-19 pandemic on the 1Q results were minimal. Both the Shanghai andTaiwan factories are now back to their normal operation.
 Completion of sales to North American smartphone manufacturer in FY2019 was a factor behind thedecline in overall 1Q sales. However, we expect newly received orders in the last two quarters tocontribute to sales later this year. Sales in China and other East Asian regions were maintained at alevel only slightly lower than the same period of the previous year.
 Our policy to keep R&D, production, and sales divisons close to our customers helped maintaineffective client communication through web conferencing and other means.
 Smartphone-related sales to Chinese clients were solid, with camera lens application sales being firm.
Also secured sales for IoT and LEDs application.
 Orders from Chinese clients for smart phones in addition to North American manufacturers weresolid. Orders in Camera lens and IoT areas were particularly solid.
 Overall Orders maintained upward trend that started during the 4th quarter of 2019, indicatingstrong underlying demands for the coater equipment. Currently wait-and-see postures are also
observed among some customers, and therefore, the impact of COVID 19 could linger in the 2Q.
Comparison of business results
1Q FY2019 1Q FY2020（ Million yen ）YoY

13,975

6,837△51.1％

4,126

1,615

△60.9%

29.5

23.6―Ordinary Profit

4,110

1,816

△55.8%

After Taxprofits

3,605

1,445

△59.9%Net sales
OperatingprofitOperatingmargin

Net Sales by Categories

2

Net Sales (1Q20)
Net Sales

1Q20 Net Sales(million yen)
18,00015,00013,975
12,701

12,000

9,071

9,000

7,073

6,837

6,000

3,000

0

1Q19

2Q19

3Q19

4Q19

1Q20

 Vacuum evaporation coaters andsputtering coaters accounted for
50% and 40% respectively of totalsales.
 Secured sales to non-North
American manufacturer for backglass (decorative film) and camera
modules for smartphones.
 Camera lens-related sales forsurveillance cameras and singlelens reflex cameras were solid.
 Also secured sales in the IoT
related for automotive, biometric ,semiconductors, optical telecommunications, etc..

3Orders Received and Order Backlog(1Q20)
Orders Received and Order Backlog
Orders Received(million yen)
50,000Order Backlog

38,20340,00032,04330,00032,46830,532
27,43520,00014,103
10,000011,1916,790

1Q19

12,573

3,976

2Q19

3Q19

4Q19

1Q20 Orders Received

 Received new orders from North
American smartphone manufacturer
as well as from Chinese clients.
 Orders for smartphone decoration andcamera with high performance
functionality were.
 New orders were also secured for new
type sputtering coater, double-sided
sputtering coater, and optical telecommunication and LEDs application.
 Observing strong underlying needs for
new technology and highperformance coating, we are keeping
production capability ready formeeting demands when it rebounds.

1Q20

4Operating Profit (1Q20)
Operating Profit(million yen)
6,000

Operating Profit

Operating margin

32.0%

29.5%

4,000

28.0%

25.7%

5,000

22.9% 23.6%

4,126
3,269

3,00019.9%

24.0%

16.0%

1,405

1,615

4.0%

2Q19

3Q19

4Q19

1Q20

12.0%
8.0%

1,000

1Q19

20.0%

2,077

2,0000(%)



1Q20 Operating Profit
Operating margin was 23.6%.
CGS ratio was maintained at
almost same level as the previous
quarter (+ 0.3%)
Efforts to improve production
efficiency and reduce material
procurement cost saw successful
results.
SG&A expenses were 1.2 billion
yen (500 million yen, or 1%
reduction from the previousquarter).
Decrease in R & D expenses andsales commission resulted in SG&A
expense reduction.

0.0%5Balance Sheet(million yen)
December 31, 2019
AmountCurrent assets
Cash and deposits
Notes and accounts
receivable - trade
Inventories
Allowance for doubtfulaccounts
Other
Non-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
13,9882,046
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%Marchr 30, 2020
Amount44,09324,6093,075
15,733
△328
1,004
9,134
53,227
18,359
3,333
488
245
12,386
1,904
1,706
142
1,564
20,06633,16153,227

Ratio

82.8%
46.2%
5.8%
29.6%
△0.6%
1.9%
17.2%
100.0%
34.5%
6.3%
0.9%
0.5%
23.3%
3.6%
3.2%
0.3%
2.9%
37.7%
62.3%
100.0%

Changes△3,100△2,360△1,177

Cash and deposits decreased due todividend payment+560＋21△144△181△3,281△1,465+598△21△299△1,601

Decreased due to sales

△141
△157
△22△134△1,623△1,658△3,281

Net assets decreased due todividend payment

6Forecast for FY2020
We’ll keep the fiscal 2020 budgets unchanged at this point of time.
We may review it when the prospect of COVID19 ramification
becomes more visible and disclose correction if we find it necessary.
FY2019 Actual

FY2020 Forecast
y-o-yNet 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%

9,101

9,200+1.1%

3,172

3,300+4.0%

Net income
attributable toowners of the parent
Research anddevelopment
expenses

N/A7Disclaimer, Precautions and Inquiries
This presentation was prepared by using assumptions based on economic, social and otherconditions as of May 11, 2020 and the reasonable judgments of management. The
information in this presentation may be revised without prior notice in the event of a change inthe business climate or other events.
This presentation contains forward-looking statements. These statements incorporate
assumptions that reflect 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 marketconditions, changes in interest rates and exchange rates, and other general items associatedwith the Japanese economy and global economy.
Even if there is new information, a future event or other items that affects the outlook, Optorun
has no obligation to update or revise the forward-looking statements in this presentation.

Inquiries:
E-mail：ir-info@optorun.co.jp TEL：03-6635-9487
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