Q2 2023 Financial Results

Optorun Co., Ltd.
August 10, 2023

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AgendaIQ2 2023 Financial Results

IITopics

I

Q2 2023 Financial Results

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Key Points in H1 2023 Financial Results[Revenue] ¥20.9 billion (up 54.9% year on year) . New-type Product ratio reached 46.2%.
 Smartphones: ALD equipment for advanced camera functionality surged in revenue.
 IoT: Revenue recorded across various sectors including Automotive, Semiconductor, and AR/VR.

[Operating Income] ¥6.6 billion (up 102.3% y-o-y) High-margin ALD equipment improved the overall profitability. SG&A spending in line with theannual Business Plan also contributed to a high operating margin.

[Net Income] ¥3.4 billion (up 18.9% y-o-y) Net Income increased despite the ¥2.9 billion loss resulted from the revaluation of foreign exchange
contracts used for hedging purposes.

[Orders received] ¥15.6 billion (down 42.1% y-o-y) Acquired multiple orders for smartphone related applications (touch panels and camera modules).
Demand for higher functionality remains strong, while some delays of actual orders are observed.
 IoT: Automotive-related orders ranged from dashboard application to vehicle-mounted cameras andheads-up displays.
 Won new orders in the New Energy sector which is viewed as one of Optorun’s future growth drivers.
 Orders received for etching equipment as well.

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Financial Highlights(Unit: 100 million yen)

Year ended December
Q2 2022

Year ended December
Q2 2023

Changes (%)

Forecast Year
2023

135

209

154.9%

355

61

105

170.9%-(45.6%)(50.3%)--

3266

202.3%

86(24.4%)(31.8%)-(24.2%)

44

42

95.4%

86(33.1%)(20.4%)-(24.2%)2934

118.9%

62(21.6%)(16.6%)-(17.5%)1320

149.7%

34(10.0%)(9.6%)-(9.6%)

610163.1%

56

Orders Received

270

156

57.9%

-Order Backlog

416

316

76.0%

-Net Sales
Gross profit

Operating income

Ordinary income

Net Profit

R&D expenses
CAPEX(NOTE) % in parentheses represents the percentage of sales

2Quarterly sales by segment•••

Smartphone sector sales performed well, especially ALD equipment.
The new-type equipment ratio increased to 46.2%.
Demand for automobiles and LEDs related applications remained strong.
Smart phone

Camera lens

IoT

LEDOtherALD(Unit: 100 million yen)

New equipment(excluding ALD）

140

118

120
112
100

1888
80

80

746860

40

9430

193

220

1935

33
22021 1Q

8720

1924 39

318

17070

244

29

1929

1031 158992021 2Q

2021 3Q

2021 4Q2751
5
4150.5 1725 1152022 1Q

90

183
541195
2013

2

9235

30

258 225172022 2Q

2022 3Q

730

25263

1935136145550 201135 12482022 4Q2023 1Q

883

2023 2Q
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Quarterly changes in profitability•Achieve gross margin of more than 50% in line with the increase in the ratio of new equipment(Unit: 100 million yen)

Operating Profit

Gross Profit margin

Operating Profit margin
60.0%

70

50.5%

60
46.3%

48.1%
44.3%

50

42.5%

40.9%

50.0%
42.4%

41.5%

50.2%

42.1%

34.1%
40

30

30.4%
24.3%

21.8%
20.0%

19.7%

40
14.5%

16

30.0%

26.1%

24.8%

20

10

28.8%

40.0%

172225

12.7%

29132610.0%

1270.0%02021 1Q

2021 2Q

2021 3Q

2021 4Q

2022 1Q

2022 2Q

2022 3Q

2022 4Q

2023 1Q

2023 2Q

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Quarterly changes in orders received by segment•••

The need for sophisticated functions in smartphone sector remains strong, while the Q2 order flows
saw some delays.
IoT sales for automotive cameras and AR/VR are solid.
Won orders for New Energy Sector-related equipment and etching equipment for the first time
(Unit: 100 million yen)5Consolidated Balance Sheets
Liabilities and Net assets

Assets(Unit: 100 million yen)
900829

900

835

835

829

800

800

20 4474700

349

334

600

79

72

400

200

100

172
190

600

500

300

Cash anddeposits

700

204

215

20

18175

194

0

Notes andaccounts
payable42235525

Non-current
assetsShort-term loans
payable500

Advances received

400

Other Current
liabilities

300

Non-current
liabirities

Inventories

Other current
assets

Notes and accounts
payable521

558

Net assets

200

100

0
End of December
2022

End of June2023

End of December
2022

End of June2023

6

Consolidated cash flows(Unit: 100 million yen)
H1 Year 2022

CF from operating activities

H1 Year 2023

38

Major reasons for increase/decrease

4Decrease in notes and accounts
payableDecrease in contractual liabilities

CF from investment activities△5△9Payment for acquisition oftangible fixed assets

CF from financial activities△21△19Dividends paid

Effect of exchange rate changes
on cash and cash equivalents

18

8

Net increase (decrease) in cash
and cash equivalents

30

△15

Cash and cash equivalents at
beginning of year

322

349

353

334

Cash and cash equivalents at
end of year

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IITopics

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Development of business domains

In the second quarter of 2023
Won orders for equipment for new energy and communication devices8

Development of high-performance hard films for various substrates
Optorun is developing state-of-the-art equipment that meets growing customer demand for highperformance hard coating on various substrates (metals, glass, plastics).
••••

Hard decorative film for metal cases
Hard coat for cover glass scratch prevention
Hard coat for preventing scratches on flexible displays
Hard coating for AR/VR plastic lenses[Smartphone][Vapor deposition
equipment][Smart Glass][Sputter device][Automobiles][Sputter device]

Received large-scale orders for sputtering equipment in the Q1.
Expecting further future orders.

[Inkjet device](NOTE)Nanolytics Corp. equipment

9Entry into the semiconductor optical fusion Meta-surface field

Combining the two companies’
capabilities (Design, patterning, thinfilm deposition, and etching), the JV
aims at reaching its sales target of
JPY10bn by 2025 by providing “OneStop Solution” in precision optics.

Meta-surface

Ink JetNanoimprint

Surface Texture

Selective Coating

ALD Filling

10Atmospheric vacuum, and organic/inorganic hybrid surface treatment technology■Features Ink jet coating enables patterning and thin-film deposition with right amount of ink on righttargeted spots on 3D shaped substrates.
 Combination of inkjet solution and PVD thin-film deposition technology realizes organic/inorganic
thin-film deposition and improves overall performance of deposited thin-films.
 Precision alignment technologies used in vacuum enables thin-film deposition to be made precisely
on targeted areas.
 High-performing materials and Nanoimprinting improve etching performance and substantiallyreduce customers’ manufacturing costs[Sputter device]11

In response to future geopolitical risks
Optorun Group is responding to the overall shift in global value chain to reduce geopolitical risks andstabilize future supply chains.
••••

Local production for local consumption. “Made in China for China”.
Strengthening the production capabilities for producing high-performance equipment for semiconductoroptical-fusion application in Japan and Taiwan
Established Vietnam subsidiary in July 2023 to penetrate Southeast Asian market.
Started researching a possibility of setting up a future foothold in India.

12Disclaimer, Precautions, and Contact Information
The information contained in this document has been prepared on the basis of generally accepted economic and socialconditions as of August 9, 2023, and certain assumptions that we judged reasonable. However, the information containedin 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:049-299-8199

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