Optorun Co., Ltd

Financial Results(3Q 2021）

Table of Contents

Ⅰ.Financial Results for the 3rd Quarter of theFiscal Year Ending December 2021

P3II. Market Trends

P 102

1.
2.

Financial Highlights (Q1-Q3 of 2021)
Breakdown of quarterly net sales

3.

Quarterly gross profit and operating profit

4.
5.
6.

Quarterly orders received
Consolidated Balance Sheet (as of Sep 31, 2021)
Business Outlook

3

1 Financial Highlights (Q1-Q3 of 2021)

Sales for the Q1-Q3 of 2021 were JPY 22bn, down 10.7% from the same period of the previous year.
Gross profit maintained previous year’s level due to the contribution of new product type equipment sales. SG&A expenses increased
YoY, a move in accordance with the plan. Net income increased due to an extraordinary profit of JPY800 mn resulted from partial
sale of investment securities.
 Orders declined 1.4% YoY to JPY22.9 bn due to the prolonged impact of global semiconductor shortage and Covid-19 pandemic oncustomers' production and new product model development. Smartphones and LEDs are showing signs of recovery.
 Q3 R&D activities generated meaningful results such as the launch of etching equipment and the acquisition of a new major customer
who placed orders for ALD equipment.
【Sales by Business Segment】 【Amount of orders received by field】[Performance Comparison](¥100 million)Net sales
Gross profit
SGA expens¥es
Operating profit
Ordinary profit
After Tax profit

3Q 2020 3Q 2021 YoY change△10.7%
246
220
98

97(39.9%)(44.3%)

4249(17.3%)(22.4%)

55

48(22.5%)(21.9%)

56

53(22.9%)(24.5%)

4245(17.2%)(20.6%)

Research anddevelopment expenses

2325(9.6%)(11.8%)

Capital expenditures

78232229

Orders received
Order Backlog

310(NOTE)Profit rates are shown in parentheses.

244

250

△0.7%
15.6%

△13.2%

9.5%
18.3%
△1.4%

△21.1%

1121150

250

220

64

2415200

2070150

200

△4.6%
6.6%

246

500127111356

10100

232

98

2020/12 3Q

2021/12 3Q

total

total

21229

20

3184

100

50

08129
84
2020/12 3Q

2021/12 3Q

total

total

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2 Breakdown of Quarterly Net Sales【Sales by Business Segment】(¥100 million)【Sales of New Equipment】(¥100 million)

14014012812871412010080

9776840610620406003480

277427852120100243380

34768977193344 30
3235708780

2020 1Q 2020 2Q 2020 3Q 2020 4Q 2021 1Q 2021 2Q 2021 3Q

Camera lens

IoT

LED

6868

19 40
331Other

80

80706074

200Smart phone

979211819172434%

2020 1Q 2020 2Q 2020 3Q 2020 4Q 2021 1Q 2021 2Q 2021 3Q

Sales of new equipment

53 Quarterly gross profit and operating profit(¥100 million)
50.0%
45.0%

46.3%
42.2%
38.7%

40.0%

39.3%

5044.3%4542.5%

37.8%

40

35.0%

3530.0%

30

25.0%

23.6%

20.9%

23.6%

24.0%

24.3%

21.8%

20.0%

25

19.7%

20

15.0%

1510.0%105.0%

50.0%

1620

1830

1617132020/12 1Q

2020/12 2Q

2020/12 3Q

2020/12 4Q

2021/12 1Q

2021/12 2Q

2021/12 3Q

Operating income

Gross profit margin

Operating income margin

064 Quarterly orders received(¥100 million)【Amount of orders received by sector】

140

140

125120100125191212041180

63

2 1408726420010091

1460[New Equipment Orders](¥100 million)

28

439171453232321431291039

132 15733480

60

129

Camera lens

IoT

LED

Other

4340

23187363630.6

2020 1Q 2020 2Q 2020 3Q 2020 4Q 2021 1Q 2021 2Q 2021 3Q

Smart phone

91

20053

47
18863193727

22 34%

2020 1Q 2020 2Q 2020 3Q 2020 4Q 2021 1Q 2021 2Q 2021 3Q

Orders for new equipment

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5 Consolidated Balance Sheet (Sep 31, 2021)【Assets】(¥100 million)(¥100 million)

610

610

600

600

543
Cash and500

deposits

227

400

324

and account

Other current

300

200

111
1000assets

461123 417108

8925100

End of December 2020

End of September 2021

3

accounts payable

13

Short-term interestbearing debts

300

Investment

1228

Bills for payment andAdvances received

200

94

3400543

Other current liabilities

Fixed assets

121

9500

4Bills receivable
receivable
Inventories

97【Liabilities and Net Assets】

395

432

Fixed liabilities
Net assets

securities
1000

End of December 2020 End of September 2021

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6 Business Outlook The global semiconductor shortage and the prolonged pandemic, among other factors, continued
to have impact on the global macroeconomy. We revised our forecasts on August 24 as ourcustomers' capital investment demand fell below initial expectations.
 Amid a recovery trend in socioeconomic activities due to the recent progress in vaccinationworldwide, orders for the Q4, mainly for smartphones and mini LEDs, are showing signs ofrecovery.
 We are focusing on achieving the revised sales forecast. In addition, we are working at all sites toreduce SG&A expenses by approx JPY300 mn from the pre-revised plan.
(¥100 million)

Fiscal Year EndedDecember 2020
Actual resultsNet sales
Operating profit(Operating profit Ratio)
Ordinary profit374
86(23.0%)86Year ended December
31, 2021Forecast

303
68(22.4%)
71

YoY change△19.2%△21.2%―△17.5%

Research anddevelopment expenses

6756△17.6%

Dividend forecast

5050―
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1.
2.

Semiconductor-Optical Fusion (Growth)+3D(Differentiation)
Market trends

10

1 Semiconductor-Optical Fusion (Growth)+3D(Differentiation)
MarketTarget device

Our technology

Approx 1.5 bn units (2025)

Optical device

Thin-film Deposition
technology

・Advanced functions (wideangle lenses, displays,decorations)

Approx JPY16tn (2030)

・Autonomous driving
・Sensing

Base station market:
Approx JPY 11tn (2025)
・5G penetration

Optronics

 Mini/Micro LED
 Laser V RF filter Power device
 CMOS Sensor
Biosensor

・Widespread use ofbiosensors※Company forecasts

 ElectrochemicalVsensor electrodes Sensor for X-ray
detector

Evaporation
Spatter
ALD

3

D compatible

・Smart glass gaining
popularity.

 3D lens 3D panel AR/AG/AS Diffraction grating

Etching technologyEtching
112 Market trends

Smart phone

AR/MRAutomotive

 Sales are coming from camera modules and decoration
application.
 ALD orders are surging for high-resolution and wide-angle
lens application.
 Multiple collaborations with US IT players.
 Inquiries from manufacturers in East Asia are going up.

 Demand diversifing across automotive cameras, heads-up
displays, instrument panels, sensors, etc..

5G

 Demand for optical network communication equipment
continues to be strong for the second consecutive year.
 Coater and Etcher for RF filter application are scheduled to belaunched next year.

HealthCare

 For the health and security of people, we are jointly developing
biosensors with universities in Japan. Currently, customers areapplying for CFDA certification.
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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 November 9, 2021, and certain assumptions that we judged to bereasonable. However, the information contained in this document may be changed without notice due
to changes in the business environment.
The materials and information provided in this publication include so-called forward-lookingstatements. These forward-looking statements are based on current expectations, projections and risky
assumptions, and contain uncertainties that may cause results that differ materially from thesestatements.
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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