Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended December 31, 2020
(Based on Japanese GAAP)
February 12, 2021
Company name:
Optorun Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

Inquiries:

6235
URL http://www.optorun.co.jp
Representative Director and President/CEO Ihei Hayashi
Director and Senior Managing Executive
Officer General Manager of Management
Department and Corporate Planning
OfficeToshinori Takahashi

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 24, 2021
March 24, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 25, 2021
Yes

Holding of financial results meeting:

Yes

TEL

03-6635-9487(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2020 (from January 1, 2020 to December 31, 2021)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended December 31, 2020
37,491(12.4)
8,628 (20.7)
8,609 (21.9)
6,796 (25.3)
Year ended December 31, 201942,822(4.3)
10,8791.8
11,031
0.3
9,101
17.5

Yen
159.05

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
154.00
18.3
15.5
23.0

216.69206.77

Earnings per share

Year ended December 31, 2020
Year ended December 31, 2019

Diluted earnings per
share

29.0

19.7

25.4

(2) Consolidated financial position
Total assets
As of December 31, 2020
As of December 31, 2019

Net assets

Equity ratio

Net assets per share

Millions of yen
54,327

Millions of yen
39,515%72.7

Yen
918.9656,50934,81961.6

821.07

Cash flows fromoperating activities
Millions of yen(535)

Cash flows frominvesting activities
Millions of yen(1,047)

16,232(2,431)(3) Consolidated cash flows

Year ended December 31, 2020
Year ended December 31, 2019

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(2,466)
22,722(2,358)26,9692. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2019Year ended December 31, 2020
Year ending December 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

0.00
0.00

–
–

60.00
50.00

60.00
50.00

2,544
2,148

27.7
31.4

8.0
5.7

–

0.00

–

50.00

50.00

1

30.7

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
38,100
1.6
9,000
4.3
9,000
4.5
7,000
3.0
162.904. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2020

44,358,000 shares As of December 31, 2019

44,358,000 shares

Number of treasury shares at the end of the period
As of December 31, 2020

1,386,947 shares As of December 31, 2019

1,950,731 shares

42,734,511 shares Year ended December 31, 2019

42,003,594 shares

Average number of shares during the period
Year ended December 31, 20202

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2019

As of December 31, 2020

AssetsCurrent assets
Cash and deposits

26,969,840

22,722,838

Notes and accounts receivable - trade
Work in process

4,252,961
11,103,107

9,769,664
7,297,242

Raw materials and supplies
Other

4,070,363
1,148,282

3,850,246
1,275,525

Allowance for doubtful accounts(350,710)(343,692)

47,193,845

44,571,825

2,268,836

2,307,116

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation(775,581)(879,184)

Buildings and structures, net

1,493,254

1,427,932

Machinery, equipment and vehicles

852,714

1,145,099

Accumulated depreciation(619,878)(714,557)

Machinery, equipment and vehicles, net

232,836

430,541

Land

833,833

842,996

Leased assets
Accumulated depreciation

111,744(62,773)

115,314(77,414)

Leased assets, net

48,97137,900Construction in progress
Other

21,921
358,004

333,282319,758(225,111)(198,494)

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

132,893

121,264

2,763,710

3,193,917-

752,494

65,516

69,34065,516

821,835

Investment securities
Investments in capital

795,174
4,825,976

350,000
4,749,314

Deferred tax assets
Other

605,295
259,618

412,501
227,905

6,486,065

5,739,721

9,315,292

9,755,474

56,509,137

54,327,299

Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2019

As of December 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable

2,735,267
401,691

1,702,784
401,675

86,864
21,58866,00021,565545,000
13,988,698

355,785
8,921,891

318,218
501,817

310,830
421,152

Other

1,226,510

1,453,008

Total current liabilities

19,825,656

13,654,694

Long-term loans payable
Lease obligations

120,000
45,15554,00027,195

Deferred tax liabilities
Retirement benefit liability

1,078,794
147,514641,885
156,835

472,759

277,277

Current portion of long-term loans payable
Lease obligations
Income taxes payable
Advances received
Provision for bonuses
Provision for product warranties

Non-current liabilities

Other
Total non-current liabilities

1,864,222

1,157,193

21,689,879

14,811,888

Capital stock
Capital surplus

400,000
9,513,800

400,000
9,819,208

Retained earnings
Treasury shares

25,801,100(128,263)

30,053,492(91,311)

Total shareholders' equity

35,586,637

40,181,389––

Foreign currency translation adjustment(767,379)(692,903)

Total accumulated other comprehensive income(767,379)(692,903)

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assets
Total liabilities and net assets

4–

26,92534,819,258

39,515,411

56,509,137

54,327,299

Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
December 31, 2019
ProfitFiscal year ended
December 31, 2020

9,101,501

Other comprehensive income
Valuation difference on available-for-sale securities

6,804,202(4,539)–(476,378)

163,985

47,123(89,509)(433,794)

74,475Comprehensive income

8,667,706

6,878,678

Comprehensive income attributable toComprehensive income attributable to owners of parent

8,667,599

6,872,032

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

107

6

6,646

Consolidated statements of changes in equity
Fiscal year ended December 31, 2019
(Thousands of yen)
Shareholders' equity
Capital stock

Balance at beginningof current period
Changes of items
during period
Dividends ofsurplusProfit attributable toowners of parent
Disposal of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Net changes of
items other thanshareholders' equity
Total changes of
items during period
Balance at end ofcurrent period

Capital surplus

400,000

Retained earnings

9,193,505

18,980,845(188,971)

28,385,379(2,281,618)(2,281,618)

9,101,872

9,101,872

321,186

60,708(891)

381,895(891)–

320,295

6,820,254

60,7087,201,258

400,000

9,513,800

25,801,100(128,263)

35,586,637

Accumulated other comprehensive income
Total
Valuation
Foreignaccumulateddifference on
currency
otheravailable-fortranslation
comprehensive
sale securities
adjustment
incomeBalance at beginningof current period
Changes of items
during period
Dividends ofsurplusProfit attributable toowners of parent
Disposal of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Net changes of
items other thanshareholders' equity
Total changes of
items during period
Balance at end ofcurrent period

Total shareholders'equityTreasury shares

4,539(338,123)(333,584)

Non-controllinginterests

Total net assets

10,90328,062,699–(2,281,618)–

9,101,872–

381,895–(891)(4,539)(429,255)(433,794)(10,903)(444,698)(4,539)(429,255)(433,794)(10,903)6,756,559–(767,379)(767,379)–

34,819,258

7

Fiscal year ended December 31, 2020
(Thousands of yen)

Shareholders' equity
Capital stock
Balance at beginningof current period
Changes of items
during period
Dividends ofsurplusProfit attributable toowners of parent
Disposal of treasury
sharesPurchase oftreasury shares
Net changes of
items other thanshareholders' equity
Total changes of
items during period
Balance at end ofcurrent period

Balance at beginningof current period
Changes of items
during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes of
items other thanshareholders' equity
Total changes of
items during period
Balance at end ofcurrent period

Capital surplus

400,000

Retained earnings

9,513,800

Treasury shares

25,801,100(128,263)

Total shareholders'equity35,586,637(2,544,436)(2,544,436)

6,796,827

6,796,827

305,407

37,103

342,511

(151)

(151)

–

305,4074,252,391

36,9524,594,751

400,000

9,819,208

30,053,492(91,311)40,181,389

Accumulated other comprehensive
incomeTotal
Non-controlling
Foreignaccumulated
interests
currency
othertranslation
comprehensive
adjustment
incomeTotal net assets–

34,819,258(767,379)(767,379)(2,544,436)
6,796,827
342,511(151)
74,47574,47526,925

101,400

74,47574,47526,925

4,696,152(692,903)(692,903)

26,92539,515,411

8

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended

Fiscal year ended

December 31, 2019

December 31, 2020

Net sales
Cost of sales

42,822,203
25,125,374

37,491,308
22,809,423

Gross profit

17,696,828

14,681,884

Selling, general and administrative expenses

6,817,692

6,053,539

Operating profit

10,879,135

8,628,345

Interest income
Rent income

57,012
108,469

42,461
72,195

Foreign exchange gains
Subsidy income

61,59547,340–
119,694

Non-operating income

Other

24,59826,896

Total non-operating income

299,016

261,248

Interest expenses
Share of loss of entities accounted for using equity

10,792
122,770

7,174
40,843

methodContribution

10,47325,944Foreign exchange losses
Other

–
3,069

186,116
19,755Non-operating expenses

Total non-operating expenses
Ordinary profit

147,105

279,835

11,031,046

8,609,757

2,305
456,570

2,564–

Extraordinary income
Gain on sales of non-current assets
Gain on change in equity–

66,719458,876

69,283

Loss on retirement of non-current assets

2,324

1,222

Total extraordinary losses

2,324

1,222

Profit before income taxes

11,487,597

8,677,818

Income taxes - current

1,720,861

2,101,874

Income taxes - deferred

665,235(228,257)

Total income taxes

2,386,096

1,873,616

Profit9,101,501

6,804,202

(371)

7,374

9,101,872

6,796,827

Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
December 31, 2019

Fiscal year ended
December 31, 2020

Cash flows from operating activities
Profit before income taxes
Depreciation

11,487,597
250,089

8,677,818
243,546

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts(69,357)

38,001(7,018)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for(109,853)(11,323)(104,926)-(147,431)(80,665)

9,060

9,321

(257,274)-(57,012)(42,461)Interest expenses
Foreign exchange losses (gains)

10,792
163,468

7,174
211,549

Share of loss (profit) of entities accounted for using
equity method

122,770

40,843

Loss (gain) on change in equity
Gains or losses on the acquisition in stages(456,570)-(66,719)

Decrease (increase) in notes and accounts receivable trade2,284,558(5,503,517)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

9,164,189
1,179,777

4,101,966(1,061,874)

Increase (decrease) in advances received
Decrease (increase) in consumption taxes refund(6,132,101)(5,074,950)

169,715(134,499)

directors (and other officers)
Increase (decrease) in provision for product warranties
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Interest income

receivable
Other, net

979,815363,20318,487,307

1,710,395

57,012(10,792)

42,461(7,174)

Income taxes paid

(2,300,897)(2,281,055)

Net cash provided by (used in) operating activities

16,232,629(535,372)

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(149,513)
9,884(760,237)
40,525Purchase of intangible assets
Purchase of investment securities(23,918)(146,436)(33,596)-

Payments for investments in capital
Collection of loans receivable(2,140,172)
89,220(24,000)
78,015

Payments of loans receivable
Additional investments in newly consolidated entities(70,620)-(78,015)(270,206)

Net cash provided by (used in) investing activities(2,431,556)(1,047,514)

SubtotalInterest income received
Interest expenses paid

Cash flows from investing activities

9(Thousands of yen)
Fiscal year ended
December 31, 2019

Fiscal year ended
December 31, 2020

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable(156,150)(190,992)(86,864)

Repayments of lease obligations
Purchase of treasury shares(23,412)(77)(21,588)(151)

303,045(2,279,091)

185,175(2,543,479)(11,902)-(2,358,581)(2,466,908)(213,158)(197,206)

Net increase (decrease) in cash and cash equivalents

11,229,332(4,247,002)

Cash and cash equivalents at beginning of period

15,740,508

26,969,840

Cash and cash equivalents at end of period

26,969,840

22,722,838

Proceeds from exercise of share options
Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents

10