Year 2022 2nd Quarter Results

Optorun Co., Ltd.
August 5, 2022

1

Agenda01

FY2022 Q2 Results02Topics2

Results for the 2nd Quarter of FY 20223

1. 1st Half 2022 Highlight The 2nd quarter saw another high level of orders following a strong
1st quarter (total of JPY27 bn for the 1st half). Our focus of R&D
activities on semiconductor optical fusion and 3D technology areas
are producing results in the fields of camera modules, automobiles,and semiconductors.
 Net sales fell 9% y-o-y to JPY13.5 bn. The Covid-related lockdownof China’s major cities was primarily responsible for the decline. We
are accelerating local production and stepping up support of ourcustomers’ acceptance inspection activities following the lockdown.
 Operating income was JPY3.2 bn (24.4% profit ratio). Sales of newtype equipment including ALD lifted overall gross margin level.
Ordinary income was JPY4.4 bn due to foreign exchange gains.
 Subsidiary dedicated for the ALD business acquired land in Baoshan
district of Shanghai as part of its progress toward full-scale operation.
4

2. Performance Summary[Unit: 100 million yen]

Net sales

1stH 2021

1stH 2022

Year-on-year change149

1356761(45.2%)(45.6%)

3432(23.0%)(24.4%)

3944(26.2%)(33.1%)―

27296.7%(18.3%)(21.6%)―

1713(11.9%)(10.0%)

46△24.0%

Orders received

165

270

63.6%

Order backlog

251

416

65.6%

Gross profit
Operating profit
Ordinary profit
Net profit
R&D expenses
CAPEX(NOTE)Figures in parentheses represent the percentage of sales.

△9.6%

△8.8%

―

△4.0%

―

14.1%

―

43.1%

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3. Breakdown of Net Sales (quarterly)
Smartphone(¥100 million)

Camera Lens

IoT

LED

OtherALD

New equipment(excluding ALD）

140

7141201007806040
2004361062427742740
902020 1Q

2102020 2Q

34749477 73852331802020 3Q

19233

12020 4Q

30
31722021 1Q

351082021 2Q

11548720

19192

24

3431 152792021 3Q

295415130925 1052021 4Q

2022 1Q

2022 2Q

52564. Gross profit and Operating profit (quarterly)
Operating profit

Gross profit margin

Operating profit margin(¥100 million)

70

60.0%

50.0%

46.3%
42.2%

40.0%

44.3%

38.7% 39.3% 37.8%

48.1%
42.5%

40.9% 41.5%

50
30.4%

30.0%

23.6%
20.0%

20.9%

23.6% 24.0% 24.3%

21.8%

24.8%

40
30

19.7%
14.5%

20

10.0%

0.0%

60

1016201830

16171322725

2020/12 1Q

2020/12 2Q

2020/12 3Q

2020/12 4Q

2021/12 1Q

2021/12 2Q

2021/12 3Q

2021/12 4Q

2022/12 1Q

2022/12 2Q

075. Orders received (quarterly)
Smartphone

Camera Lens

IoT

LEDOtherALD

New equipment(excluding ALD）(¥100 million)

140
120100912171460

1 240 87260472020 1Q

9428171712020 2Q

14 712020 3Q

1339123152 12
9 7322020 4Q

3101292142710

2021 1Q

34 16
102021 2Q

230
141872021 3Q

21646313
913039

20

41180

20

160.6

1624
26

2021 4Q

78

95
1758

21
2022 1Q

2022 2Q
8

6. Consolidated Balance Sheet(¥100 million)
800

Assets(¥100 million) Liabilities and net assets
800

744
700

744646600

Cash anddeposits

353500Notes and accounts
payable322

400

Inventories

54300

60
128

200

100049700

600

500

646

41532

98354132
33

Notes and accounts payable

20

Short-term loans payable

Advances received

400

Other current liabilities

300
Other current
assets

182

200

1820

115

135

End of December
2021

End of June2022

Non-current
assets460

503

Non-current liabilities

Net assets

100

0

End of December
2021

End of June
2022

9

7. Cash flows(¥100 million)

1stH in FY12/21
Amount

1stH in FY12/22
Amount

CF from sales activities

107

38

CF from investment activities△4△5Main reasonchanges△68△1Of cash and cash equivalents
Translation adjustments△216△211812

Net increase (decrease) in cash andcash equivalents

8830

Cash and cash equivalents at
beginning of year

227322△57

Period-end balance of cash and cash
equivalents

315353

CF from financial activities

0Due to an increase in inventories
Purchase of tangible fixed assets
For the payment of dividends

9537102.Topics

118. Trends in orders received
 Demand is expanding for highend smartphone cameras, automotive
applications, AR/VR, and semiconductors, which require advanced
3D and semiconductor optical fusion technologies.
Smart phone Demand for larger camera modules is expected.

Automotive

 Automotive cameras, heads-up displays, sensors, etc.

AR/VR

 Diversification of applications, such as the use in games
and manufacturing sites, has progressed.

Semiconductor  Demand is surging for film deposition on wafers in thesemiconductor backend process, especially in sensing area.
Optical fusion
129. Roadmap (3D + Semiconductor Optical Fusion)
 Thin film
• Antireflection film
• Augmented reflectionfilm• Wavelength selectionfilter
Bandpass filter
Infrared cut filter• Decoration membrane(color membrane)• Transparent conductive
film• Antifouling coating• Scratch barrier

 Etching• Fender finish

Photoelectron(Semiconductor
Optical Fusion)▶Opticalcomponents
Lens
Decorative
membrane
Optical filter
Mirror▶ Smartphone

3D
compatible

Camera modules
Optical sensor
Display
Enclosure

Semiconductors▶ Solar Cells▶ Power Devices▶ Optical
Semiconductor▶Communicating
DevicesCIGS
RPD TCOALD Al2O3

LED light source
Mini LED
Micro LED
LD/VCSEL
Near infrared sensor▶ Automotive
Installation panel
Inner packing
ADAS
Flexible display

IGBT
Sic/Gan
MOSFET

Opticalcommunication
SAW/BAW
RF devices▶ CMOS Sensor▶ Data Storage

Hard disk
3D NAND FlashDRAM▶ Integrated
CircuitMicrocomputer
CPUGPU▶ MEMS device
Piezo-MEMS

At present13

10. Medium-term sales image
 The Company will maintain the top market share in the fields of smartphones, IoT and LEDs.
 In addition, new demand for optoelectronics (compound semiconductors, RF filters, powerdevices, etc.) will be captured for further growth.
Mid-term sales image [Unit: JPY100 mn]Sales composition image

500

Etching, etc.

308

Photoelectron, 20%

ALD, 20%
Deposition +sputter

Optical thinfilm, 80%2021/1214

11. ALD business
1. Application areas

 Likely to expand to AR/VR and semiconductor wafer-level optics from the current lenses
and displays application.
[Smartphones (lenses)][Display (Mini LED)][AR/VR][Wafer Level Optics]

2.Land acquisition by ALD business Subsidiary ALD business has grown into our corebusiness.
 Acquired land for plant to enable thesubsidiary to quickly grasp the needs of theChinese market.
1512. Biosensor business Our customer obtained CFDA certification for
their blood glucose and uric acid biosensor
products using sensors (electrodes) based on ourdeposition technology.
 As a result, the needs for our biosensor product areexpected to increase.
 The biosensor business is scheduled to move fromthe R&D stage to the business stage.

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Disclaimer, Precautions, and Contact Information
The information contained in this document has been prepared on the basis of generally accepted
economic and social conditions as of August 5, 2022, and certain assumptions that we judged to bereasonable. However, the information contained in this document may be changed without prior notice
due to changes in the business environment.
The materials and information provided in this publication include so-called forward-looking 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, general domestic andinternational economic conditions such as interest rates and currency fluctuations.
We are not obligated to update or revise the forward-looking information contained in this report even if
new information or future events occur.

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