December 2022
Earnings Presentation
Optorun Co., Ltd.
February 14, 2023

1

AgendaI

Results for FY12/2022

IIForecasts for FY12/2023

III

Medium-term vision

I

Results for FY12/2022

3

Key points (FY12/2022)[Orders received] ¥43.1 billion (up 21.7% from the previous year) Strong demand from high-end smartphone cameras with high resolution and definition contributed tothe surge in orders from the previous year.
Growth in semiconductor optical fusion technologies, including automobiles and LEDs, supports theprospects of the trend turning to one of major growth pillars.
 ALD equipment has grown into our major product as a result of continuous R&D efforts.
New-type equipment ratio reached 46.6%.
 The slowdown of Chinese market in Q4 that resulted from abrupt Covid policy change and theappreciation of the Yen against the dollar had significant impact on orders received in Q4.

[Sales] ¥34.3 billion (up 11.0% from the previous year) ALD equipment sales increased to meet the surging needs from the advancement of smartphone
cameras. Strong sales were also recorded for automobile application.
 Sales surged across both new and conventional type equipment.
New-type equipment ratio of 35.2% was achieved, clearing the initially set 35% goal.

[Operating Income] ¥7.4 billion (up 6.0% from the previous year) Highly profitable new equipment contributed to the surge in operating income.
 The decline in the 4Q operating profit margin was due to a recovery in R&D expenditures, which had
been sluggish due to the month-long lockdown in major cities in China in the first half of the year.

[Current Net Income] ¥6.8 billion (up 8.8% from the previous year) Foreign exchange gains were recorded due to the yen‘s depreciation, and extraordinary income wasrecorded as a result of sales of shareholdings in a JV.
1

Financial Highlights(Unit: JPY100 million)

Year ended December
2022
forecast (November 10)

Year ended
December 2021

Year ended December
2022

YoY changes

Comparison
with forecast

308

322

343

11.0%

6.5%

133

-

149

11.6%

-

(43.3%)-(43.6%)

--

70

75

74

6.0%

(22.7%)(23.3%)(21.7%)

-79

90

87

10.9%

△0.7%

(25.6%)(28.0%)(25.5%)

-63

67

68

8.8%

(20.5%)(20.8%)(20.1%)

--30-

34

11.3%

-(9.9%)-(9.9%)

--

9-

57

497.4%-

Orders received

354-

431

21.7%

-

Order Backlog

281-

369

31.4%

-Net Sales
Gross profit
Operating income
Ordinary income
Net Profit
R&D expenses
CAPEX(NOTE) % in parentheses represents the percentage of sales

-

△2.6%

-

2.8%

2

Quarterly Sales by Segment(Unit: JPY100 million)
Smart phone

Camera lens

IoTLED

OtherALD

New equipment(excluding ALD）

140120112

100746840
20088808060

95

189430193233172021 1Q

3521170872019243418354291951542930
2022 2Q

31 1589925 1152021 2Q

2021 3Q

2021 4Q

2022 1Q

27192150.5

102325220558550

178112022 3Q

2022 4Q
3

Quarterly changes in profitability(Unit: JPY100 million)
Operating Profit

Gross Profit margin

Operating Profit margin
70

60.0%

50.0%

46.3%

60

48.1%
44.3%

42.5%

40.9%

42.4%

41.5%

42.1%

40.0%

24.3%

26.1%

24.8%

21.8%

20.0%

19.7%

10.0%
160.0%

40

30.4%

30.0%

2021 1Q

172021 2Q

22132021 3Q

3012.7%14.5%252022 1Q

2029101272021 4Q

50

2022 2Q

2022 3Q

2022 4Q

04

Quarterly Orders Received by Segment(Unit: JPY100 million)
200

Smart phone

Camera lens

IoT

LED

Other

Foreign exchange impact

ALD

New equipment(excluding ALD）

188
30

150

100

50

091
76933 37
22730
1073
39818 27
329 161063
39922 22017 147121
10920164 51
632426138

132

16
15034
138

69 17

2314709 64
67658161024
3 92
19102

72

21

8 25
15 10
12 15-8-53-50-27-1002021 1Q

2021 2Q

2021 3Q

2021 4Q

2022 1Q

2022 2Q

2022 3Q

2022 4Q
5

Consolidated Balance Sheets(Unit: JPY100 million)

AssetsLiabilities and Net Assets
829

829
700

646

700

349

600
500

322

400
300
200
100

60
128
20
115

079
204
20175

End of December End of September
2021
2022

47

800

800

Cash anddeposits

600

646
32
98

4190
442
23

Short-termloans payable
Advances
receivedNotes andaccounts
payableInventories

500
400

Other Current
liabilities

Other currentassets

300

Non-current
liabirities

Non-current
assets2003515460521

Net assets

1000

End of December End of September
2021
2022

6

Consolidated cash flows(Unit: 100 millionyen)

Year ended
December 2021

CF from sales activities
CF from investment
activities
CF from financial activities
Effect of exchange ratechanges on cash and cash
equivalents

Year ended
December 2022

Major changes

10685

3△43△2712△21Due to an increase incontractual liabilities
Payments for acquisitionof tangible fixed assets
Dividend payment

6Net increase (decrease) incash and cash equivalents

9526

Cash and cash equivalents at
beginning of year

227

322

Cash and cash equivalents at
end of year

322

349

7

IIForecasts for FY12/23

11Forecasts for FY12/23(Unit: JPY100 million)

Year ended
December 2022

Year ended December 2023
forecast

Change %Net sales

343

355

3.5%

Operating income

7486

15.5%

(21.7%)(24.2%)-

Ordinary income

8786

Net Profit

6862

△1.9%

Dividends and forecasts
(yen)

5050

(Operating Profit Ratio)△10.0%-[Exchange rate]
Actual average rate

Planned rate

USD/JPY

131.62115.00CNY/JPY19.50

20.00
8

Underlying assumptions of full-year earnings forecast[Business Environment] Continued demand expansion for thin-film deposition driven by cutting-edge technologies.
 Demand for high-performance smartphones will continue to drive demand.
 Strong need for higher-resolution cameras will remain. Growth in the automotive and electricvehicle markets is expected to be especially strong.

[Sales] New type equipment target sales ratio is set at 50%.
 Increase in the proportion of ALD equipment sales will contribute to improved gross margin.

[Operating Income] Investment in relation to establishing strong supply-chain both inside and outside China to meetthe growing geopolitical risks will require some additional SG&A expenditure. We see theseinvestment essential for sustaining future growth in this new global environment.
 R&D expenses will be maintained at about 10% of net sales
 Forecasting operating income margin of 24% as a result of improved gross margin despite thehigher SG&A expense.

[Current Net Income] Forward contracts to covert dollar into yen are already in place to cover the scheduled inflow ofdollar-denominated sales throughout the year.
 No significant extraordinary gains are taken into account.
9CAPEX, Depreciation, R&D expenses(Unit: 100 million yen)

Capital Expenditures
60

56

Depreciation / Amortization

R&D Expenses

60

60

50

50

50

40

40

40

30

30

30

20

20

20

10057

92021

1020222023

032021

52022

72023

[Major CAPEX]
2022: Purchase of properties for R&D facilities in Japan
Started construction of semiconductor technology plant in China
2023: Completion of construction of a plant ofOptorun Semiconductor System Corporation in China30343420222023

1002021[R&D Expenses]
Will maintain approximately 10%of Sales

10

Dividend forecast
 Forecast to maintain ¥50 per share[Dividend Policy]••

Earnings are reinvestment in R&D, reinforcement of the production system, development of new businesses andother necessary internal reserves while maximizing returns to shareholders.
We aim for a stable dividend with a consolidated dividend payout ratio of about 30%.
(Unit: Yen)

Dividends per share

Dividend payout ratio

100

45.0%

80
60

27.7%

31.4%

33.7%

31.4%

35.1%

40.0%
35.0%
30.0%
25.0%
20.0%

4060
205050

5050

15.0%
10.0%
5.0%

0

2019 122020 122021 122022 122023 12(Forecast)

0.0%
11

III

Medium-term vision16

Mid-term sales target

Target sales of ¥50 billion by FY2025
Optorun will lead the market as an industry global leader by capturing the business
opportunity around the semiconductor optical fusion related technologies that are
seen as a new growth area.

500

Sales composition image[Sector]Electronic
Devices20%

343

Semiconductor
optical fusion
20%

Optical thin film
60%

[Device-Specific]
Etching,etc.20%
ALD
20%

2022/122025/12

Deposition +sputter
60%

12Focus on Semiconductor Optical Fusion
Focus management resources and R&D activities on high value-added growth areas.
Steadily incorporate semiconductor optical fusion movements into growth.
Automobiles
On-board camera *1

LiDAR ※1

Display *2(Unit: 100 million yen)

(Unit: 100 million yen)

(Unit: 100 million yen)

13,710

Semiconductor
optical fusion

13,4009,900

5,100550■Image sensor

In 2021(Actual results)

In 2028(Prediction)

In 2021(Actual results)

In 2028(Prediction)■Communication Device

・Instrument panel
・ADAS display sensor

・BAW/SAW・RF Device

In 2021(Actual results)

In 2027(Prediction)

Photoelectron

Image sensor■Automobiles

8,175

Area image sensor *1

Micro LED ※2

VCSEL ※1

(Unit: 100 million yen)

(Unit: 100 million yen)

(Unit: 100 million yen)

27,51020,7202,070■Photoelectron
・Mini LED
・Micro LED
・LD/VCSEL

1,410
578

150
In 2021(Actual results)

In 2028(Prediction)

In 2021(Actual results)

In 2027(Prediction)

In 2021(Actual results)

Source: Fuji Chimera Research Institute※1 "Total Market Survey Related to Imaging & Sensing"※2 "Current Market and Future Prospects for 2022 Display-RelatedMarkets"

In 2028(Prediction)

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Development for electronic devices

See expansion of the business opportunity in semiconductor-optical fusion and further
into electronic devices.
By meeting the market needs in relation to these new opportunities, we believe we’ll
also be able to contribute to the creation of Smart-Society.
Semiconductor
optical fusion

Optical■Optical components■Image sensor

Electronic Devices■New energy

・Decorative membrane, lens and mirror
・Optical filter

・Solar cells
・Lithium battery
・Power device■Automobiles
・Instrument panel
・ADAS display sensor■Communication Device■Smart Phone
・Camera modules and chassis
・Display and optical sensor■AR/VR Device
・Smart glass
・Head mount display

・BAW/SAW・RF Device■Photoelectron
・Mini LED
・Micro LED
・LD/VCSEL■MEMS Device
・Micro mirror
・Gyrocompass scope
・Acceleration sensor

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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 February 13, 2023, and certain assumptions that we judged reasonable. 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-looking statements. These forwardlooking 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 and international
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]
E-mail:ir-info@optorun.co.jp TEL:03-6635-9487

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