Annual Report 2018

FINANCIAL HIGHLIGHTS

Millions of Yen

Years ended December 31

2014

2015

2016

2017

2018

¥ 73,621¥ 71,946¥ 59,903¥ 60,496¥ 61,815

6,076

4,554

2,361

4,246

5,424

For the Year:

Corporate Philosophy
We at Tamron are advancing with our corporate philosophy
to guide our mission.

Net sales
Operating income

8.3%

Operating income ratio

6.3%

6,200

Ordinary income

With its firm commitment to developing high-quality, innovative and tech-

Ordinary income ratio

nologically advanced products that satisfy customer needs, Tamron is

Profit attributable to owners of parent

3.9%

5,140

8.4%

2,855

7.1%

8.8%

7.0%

5,877

4,100

4.8%

9.5%

6.8%

3,846

4,048

1,482

2,838

4,330

Total assets¥ 69,906¥ 66,035¥ 60,910¥ 63,868¥ 64,704

Net assets

51,99549,00147,32149,94050,852

Profit attributable to owners of parent¥140.14¥153.98¥ 57.19¥ 109.51¥167.80

Shareholders’ equity

1,894.14

1,890.45

1,825.62

1,926.65

1,976.05

Cash dividends

50.00

60.00

55.00

50.00

60.00

Price earnings ratio (PER)

17.0

14.6

33.9

22.1

9.4

Return on assets (ROA)

9.2%

7.6%

4.5%

6.6%

9.1%

Return on equity (ROE)

7.8%

8.0%

3.1%

5.8%

8.6%

Equity ratio

74.4%

74.2%

77.7%

78.2%

78.6%

securing a leading position in the worldwide optical industry.
Our primary objective is to sustain strong corporate growth based on ahigh level of customer satisfaction achieved by providing superior products at the right price, thus also contributing to the prosperity of ourshareholders and employees.

At Year-End:Per Share Data (Yen):TABLE OF CONTENTSCORPORATE PHILOSOPHY ……………………………………………………………… 1
FINANCIAL HIGHLIGHTS ………………………………………………………………… 2
MESSAGE FROM THE PRESIDENT & CEO …………………………………………… 3
MANAGEMENT POLICY …………………………………………………………………… 3
ESG …………………………………………………………………………………………… 5
BUSINESS SEGMENT INFORMATION ………………………………………………… 7
FINANCIAL SITUATION …………………………………………………………………… 9

Ratios:

Notes: 1. ROA=Ordinary income/Total assets
2. ROE=Profit attributable to owners of parent/Total net assets

CORPORATE GOVERNANCE …………………………………………………………… 11
BUSINESS & OTHER RISKS ………………………………………………………………… 15
CONSOLIDATED BALANCE SHEETS …………………………………………………… 16
CONSOLIDATED STATEMENTS OF INCOME/
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME……………… 18
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS ………………… 19
CONSOLIDATED STATEMENTS OF CASH FLOWS ………………………………… 20

NET SALESOPERATING INCOME/(% NET SALES)PROFIT ATTRIBUTABLE TO OWNERS OF PARENT(% NET SALES)(Millions of Yen)

(Millions of Yen)(%)

(Millions of Yen)

100,000

10,00010

5,000

80,00073,621 71,946

8,000

59,903 60,496 61,815

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ………………………… 21

60,000HISTORY ……………………………………………………………………………………… 23

40,0004,000

COMPANY PROFILE/STOCK OVERVIEW……………………………………………… 25

20,000

2,000

GROUP NETWORK ………………………………………………………………………… 26

02014 2015 2016 2017 2018

6,000

0

8.8

8.3
6,076

7.0

6.3
4,554

3.9

4,246

5,424

2,361

2014

2015

2016

2017

2018

8

4,000

6

3,000

4

2,000

2

1,000

0

0

(%)

3,846

4,048

5.2

5.6

4,330

8

2,838
1,482

7.0

4.7

2015

2016

6
4

2.5
2014

10

2

2017

2018

0

Note: In the 2018 annual report, amounts of less than the unit indicated, for example, one million yen have been omitted.

1

Tamron Co., Ltd.

Annual Report 2018

2

MESSAGE FROM THE PRESIDENT & CEO

MANAGEMENT POLICY

We achieved a record high gross margin and increases inrevenues and profits for the second consecutive fiscal year

Mid-Term Management Plan and Current State of Progress
We aim to achieve the medium-term management plan to 2020 as well as achieving innovative change themes.

I am pleased to provide an overview of our consolidated business results for the

The Tamron Group has developed a mid-term management plan ending in 2020, with 2017 as the base year forcomparisons of business performance. In this plan, the Group has set targets of increasing net sales to 72.0 billion
yen (an increase of over 10.0 billion yen), operating income to 6.6 billion yen (an increase of over 1.5 times thebase level), and ROE to at least 9%. Here, we present progress during 2018 (the first year of the plan) and theoutlook for the future.

72nd term (January 1, 2018 to December 31, 2018) as follows.
Regarding market conditions for the fiscal year under review, in the digital
camera market, the shift towards mirrorless cameras accelerated further, andsales of mirrorless cameras remain strong. Meanwhile, sales of SLR type cameras
declined, with overall sales for interchangeable lens-type cameras down by 8% on

Although 2018 (the first year of the plan) ended with planned sales targets unachieved, we were able to achieve
results that greatly exceeded the initial plan targets for profits, with operating income of 5.4 billion yen and anratio of operating income to net sales of 8.8%.

the previous fiscal year.
Although sales of interchangeable lenses decreased by 6% year-on-year, highimage quality lenses (for full-size use) performed strongly, resulting in an increase（Yen）of 1% compared to the previous year (in terms of monetary amount). Meanwhile（Yen）

Mid-Term Management Plansales of compact digital cameras decreased significantly, down by 35% on the

1st year(Announced in Feb., 2018)previous year, while the surveillance camera and vehicle-mounted camera markets continued to grow.
Under these circumstances, in the fiscal year under review, the Group achieved
increases in revenue for all segments, with sales standing at 61.815 billion yen (up2.2% compared to the previous year).
The company achieved a record high gross margin for the second consecutive
fiscal year thanks to the effects of the launch of new products in the house-brandActual FY17

Target FY20

Sales

¥60.5B.

¥72.0B.

Operating
Income¥4.2B.

(% Sales)
ROE

（Yen）

2nd year

Original Forecast FY18

Actual FY18

Forecast FY19

Sales

¥63.0B.

¥61.8B.

¥65.0B.

¥6.6B.

Operating
Income¥4.8B.

¥5.4B.

¥5.9B.

7.0%

9.2%(% Sales)

7.6%

8.8%

9.1%

5.8%

More than 9％

ROE

6.6%

8.6%

7.9%

interchangeable lens category. Additionally, by keeping the increase in SG&A
expenses to a minimum, the company achieved increases in revenue and profits

Business Performancefor a second consecutive year, along with significant improvements in profitability.

Net Sales（billion Yen）

80

Operating income stood at 5.424 billion yen (up 27.7% compared to the previousyear), ordinary income at 5.877 billion yen (up 43.4% compared to the previous

40

compared to the previous year).
In FY2019, given the market environment and the progressive shift towards mirof house-brand interchangeable lenses for mirrorless cameras. We will also seek
to secure new orders and launch high added-value products for drones, automotive cameras, surveillance cameras and factory automation (FA) markets.

President & CEO
Tamron Co., Ltd.

Shiro Ajisaka

1. Accelerate the global expansion of the existing business, capture the5. Construct the global trilateral system for efficient production anddemand of the emerging markets, improve profitability and strength-

promote increased productivity and cost reductions through automa-

en the business foundation.

tion, labor saving and manpower saving, among other means, withthe fourth industrial revolution in mind.

strategy tailored to each market, including increasing market share by

6. In addition to the development of component technologies, especial-bolstering marketing capabilities, product planning capabilities, andly the Company's core optical technologies, focus on research andsales capabilities, and providing products that move customers

development in new technical fields, the joint creation of new values

emotionally in response to marketing trends and customer needs.

and other horizontal operations among multiple companies (includ-developing New Eyes for Industry through the reinforcement ofmarketing aiming at resolving social issues and joint creation, including through M&A.
4. Provide timely new products tailored to customers and the market by

61.8

4.2

2016

5.9

8

6.6

6

2017

2018

Net Sales

Operating Income

4
2

2.4
2015

65.0

Operating Income（billion Yen）

72.0

0
2019
2020
（Plan）（Mid-term Plan）

Steady progress toward achieving
the mid-term target●Although the 1st year sales did not achieve its forecast,
the proﬁts showed better-than-expected results●Planning the sales expansion and keeping the proﬁtability
in the 2nd year.

Aim for achieving the mid-term target by theincrease in sales and proﬁts in four
consecutive years.

The key focuses of the mid-to long-term management plan are expanding sales in new areas, such as the industrial
domain, and improving the profitability of core businesses. In 2018, we feel that we were able to achieve greater
progress in improving the profitability of core businesses than anticipated.

Issues on Mid-to Long-Term Management

3. Aim to expand business fields by expanding existing businesses and

0

60.5

5.4

4.6

20

MANAGEMENT POLICY

2. Strive to expand business, increasing market share with a sales

59.9

60

year) and profit attributable to owners of parent at 4.330 billion yen (up 52.5%

rorless cameras, we will accelerate the improvement and expansion of our lineup

71.9

Mid-term management
plan period

ing collaboration among government, industry and academia).
7. Realize sustainable growth by strengthening corporate governance toenhance the effectiveness of strategies/tactics.
8. Increase work-life balance and ensure a suitable work environment
for all employees where all workers are satisfied with their work.

In the digital camera field, which is now at a mature stage, we have made it a priority to improve the profitability ofcore businesses and build a more robust revenue base. With regard to progress in 2018, we achieved a highoperating income ratio of more than 15% in the Photographic Products business, which contributed greatly to
improving the Group’s overall profit margin.
In other businesses, in 2018, in addition to achieving sales that exceeded planned targets in the automotive field,
we also grew sales for the drone-oriented business to in excess of 1 billion yen per annum. In the surveillance andfactory automation business, we achieved the full-scale launch of our camera module business.
In 2019, the second year of the plan, we will aim to link the results achieved to date in various fields during 2018
to even greater results, and seek to maintain the trend of improving profitability while at the same time expanding
sales in the industrial field, which is the second key focus of the plan. Finally, we will aim to achieve the mid- tolong-term management plan by increasing revenues and profits for four consecutive fiscal years until 2020.

reinforcing the global development structure and reducing the leadtime from development to high-volume production.

3

Tamron Co., Ltd.

Annual Report 2018

4

MANAGEMENT POLICY

ESG

Agendas for Transformation

Main items

Reinforce Sales & Marketing

Re-Building of R&D Process

Customer Values

New Business Development

Globalization of Sales, Production, & R&D

Corporate Management

Environment

・Reducing CO 2 emissions, waste
output and water usage
・Environmentally conscious design
and recycling of parts and materials

・Introducing solar power generation <2017 & 2018>
・Energy-saving for air conditioning, lighting and production
equipment
・Recycling of plastic components, reducing use of harmful
chemicals
・Ascertaining CO2 emissions in the supply chain

Customers

・Improving customer satisfaction
・Improving and enhancing services

・Building an organizational structure to provide 3-day repairs
globally
・Providing safe, high-quality products

Suppliers

・CSR procurement
・Green procurement

・Conducting investigations of CSR initiatives at supplier companies
・Activities to make improvements at suppliers where there
are risks/concerns

Society

・Activities contributing to theadvancement of photography/video
culture and local communities
・Support for para-athletes

・Continuing to hold various photography contests
・Continuing to offer lesson visits for local schools

Shareholders& investor

・Developing the environment forshareholders to maintain andexercise their rights
・Timely, fair and proactive disclosure and communication of information

・English translation of convocation notices <2017>
・Use of electronic voting and resolution voting rights PF<2018>
・Holding explanatory meetings and disclosing content on thesame day as the announcement of financial results <2018>

ESG

Key CSR Issue
Tamron is engaged in various CSR initiatives with the aim of improving its corporate value and contributing to therealization of a sustainable society. As of 2018, the Company has identified important CSR issues for driving its
efforts to tackle social issues in the medium-to-long term, and is bolstering its activities with regard to theseissues.

E●Reducing CO2 emissions●Recycling resources and reducing waste●Environmentally friendly design●Reducing harmful chemical substances●Water management

S●Contributing to social issues through business（including new businesses）●Enhancing product quality and safety management

G●Improving the governance framework●Preparing for（rebuilding from）major disasters

Employees●Expanding the disclosure of non-ﬁnancial information●Enhancing internal reporting systems●Providing comfortable workplaceenvironments and promoting diversity

・Continuing to hold no-overtime days
・100% usage of childcare leave (expanding childcare leave,etc.)・Over 10% of management positions filled by female employees (compared to approximately 5% in 2012)
・Local people installed as top-management at 8 out of 9
local subsidiaries

・In-house preschool “Tamron Kids Nursery School”

・Obtained Kurumin logo certification
・Obtained Platinum+ company certification, the top level ofcertification under the Company Implementing Diverse
Workstyles scheme

Governancefunctions・Improving transparency, fairness
and objectivity
・Proactive use of voluntary committees
・Proactive response to the Corporate Governance Code・Established Nomination and Remuneration committees<2016>(Outside director is appointed as committee
chairperson, and the number of outside officer account for atleast half of committee membership.)・Full compliance with all rules of the Corporate Governance
Code <2018>
・Established governance guidelines <2018>

Directors andexecutive
officers

・Diversification of board membership
・Slimming down of board membership・Appointed one foreign national as director <2016> (andtwo foreign nationals as executive officers)
・Appointed one female director <2018> (and two female
executive officers)
・Reduced the number of directors by 20% from 15 to 12<2018>

Remuneration

・Review of remuneration schemes
for corporate officers

・Introduced a medium to long-term performance-linked
share remuneration scheme <2018>●Fostering the development of the next generation

Tamron Co., Ltd.

・Developing easy-to-work workplace environments
・Promoting diversity and a healthy
work-life balance
・Proactive recruitment and promotion of local people●Human resource development（improved productivity）●Promoting CSR procurement

5

Details

Annual Report 2018

6

BUSINESS SEGMENT INFORMATION

Composition of Sales

Main Products

Photographic ProductsInterchangeable lenses for 35mm/Digital

73.8%

SLR camera
Interchangeable lenses for mirrorlessinterchangeable lens camera

Business Segment Overview
Although sales in the interchangeable lens camera market declined, sales fromOEM products remained at the same level as the previous year, while strong salesof house-brand products in the United States coupled with the increase in sales of
new products launched in 2017 and 2018 contributed to an increase in revenues.
One new house-brand product in particular, the 28-75 mm F/2.8 RXD (A036)
high-speed zoom lens for 35 mm full-frame mirrorless cameras (launched in May
2018) has continued to sell strongly since the time of its initial launch due to its
uncompromising performance, achieving both high image quality and beautiful
bokeh (background blurring) eﬀects only possible with large-aperture lenses. The
house-brand 28-75 mm F/2.8 RXD (A036) and 70-210 mm F/4 VC USD (A034)
lenses were highly appraised, and simultaneously won an EISA Award, marking the13th consecutive time for the Company s lenses to win the award.
As a result, net sales for the Photographic Products business stood at 45.640
billion yen (up 0.8% compared to the previous ﬁscal year), and operating income
rose to 7.113 billion yen (up 22.3% compared to the previous year).

Net Sales

Operating Income(Losses)/(% Net Sales)(Millions of Yen)

(Millions of Yen)

60,0008,000

46,80545,29245,64040,000

7,113
5,818

6,000

4,000

4,034

15.6

12.8

20

15

10

8.6

20,000

0

(%)

2,000

2016

2017

2018

0

5

2016

2017

2018

0

Optical Components
Although revenues from compact digital camera lenses and video camera lenses
declined due to the contraction of those markets, there was a major increase in(Millions of Yen)
4,000

3,375

revenues from lenses for drones due to a full-blown increase in sales of these

Camcorder lenses

5.6%%

Digital still camera lenses
Drone lenses
Optical device units

lenses during the second half of the year as a result of an increase in the number ofmillion yen (in the previous year, the company posted operating losses of 24

1,000

20.6%

Automotive camera lenses
Camera module

Tamron Co., Ltd.

2018

-50

0

-0.7

2016

2017

2018

-5

(Millions of Yen)

(Millions of Yen)(%)

15,0001,500

15control aspects. Although sales of surveillance camera lenses and DA/machine

10,00010,73911,827

12,738

1,000

Japan and Europe remained strong, while the full-scale sale of camera modules
from the fourth quarter onwards also contributed to an increase in revenues.

827

733

vision lenses were impacted by competition over price, sales of those lenses in
5,000

500

6.8

7.0

813
6.4

10

5

As a result, net sales for the Commercial/Industrial-use Optics business came to12.738 billion yen (up 7.7% compared to the previous year), although operating
income stood at 813 million yen (down 1.8% compared to the previous year).

7

2017

2.4

camera lenses as a result of growth in sales in the sensing ﬁeld (one area in whichdevelopment of elemental technologies and enhancing production and quality

FA and Machine vision lenses△24This year saw a double-ﬁgure increase in revenues from sales of vehicle-mounted
the Company is focusing its energies), as a result of pushing forward theSurveillance camera lenses

5

3.2
0

2016

10

80

75

2,000

0

(%)

100

50

2,358

yen (up 1.8% compared to the previous year), while operating income stood at 80
million yen).

Commercial/
Industrial-use Optics

3,436

3,000

models being ordered.
As a result, net sales of the Optical Components business stood at 3.436 billion(Millions of Yen)

0

2016

2017

2018

0

2016

2017

2018

Annual Report 2018

08

FINANCIAL SITUATIONFINANCIAL SUMMARY

Current assets
The balance of current assets at the end of the consolidated fiscal year under review stood at 48.091
billion yen, up 2.698 billion yen compared to thelevel at the end of the previous consolidated fiscal
year. The result primarily reflected increases in cash
and deposits of 3.006 billion yen and decreases innotes and accounts receivable-trade of 654 millionyen.
Non-current assets
The balance of noncurrent assets at the end of theconsolidated fiscal year stood at 16.613 billion yen, adecrease of 1.862 billion yen compared to the levelat the end of the previous fiscal year. This was
mainly because of a decline in property, plant andequipment of 1.343 billion yen.
Current liabilities
The balance of current liabilities at the end of theconsolidated fiscal year stood at 11.620 billion yen,down 311 million yen compared to the level at theend of the previous consolidated fiscal year. This was
mainly because of declines in short-term borrowingsof 145 million yen and in accrued expenses of 83
million yen.
Non-current liabilities
The balance of noncurrent liabilities at the end of theconsolidated fiscal year stood at 2.231 billion yen, up
235 million yen compared to the level at the end of
the previous consolidated fiscal year. This was chiefly
because of an increase in liabilities for retirement
benefit of 154 million yen.

CASH FLOWSFor the consolidated fiscal year, cash and cash
equivalents at the end of the year increased 3.006
billion yen compared to the level at the end of theprevious consolidated fiscal year, to 22.438 billion
yen.
The cash flows resulting from different activities
during the consolidated fiscal year were as follows.
Cash flows through operating activities
Profit before income taxes stood at 5.963 billion yen,depreciation came to 3.164 billion yen, and theincrease in notes and accounts payable-trade stoodat 608 million yen. At the same time, the increases inaccounts receivable-trade and inventory came to 65
million yen and 697 million yen, respectively.
Because of these and other factors, cash flows fromoperating activities resulted in income of 7.523 billion
yen (compared to income of 7.661 billion yen for theprevious consolidated fiscal year).

CAPITAL INVESTMENTDIVIDEND POLICY

In 2018, the Tamron Group made total capital
investments of 2.047 billion yen (down 15.6%
compared to the previous year) centered oninvestments in metal molds related to new models.

We will continue with the stable allocation of profits
to shareholders.We strive to allocate profits basedon business performance while taking a long-termview of improved earning power and consideringvarious R&D efforts and capital investments toreinforce the management structure and expand into
new businesses in the future. We target a dividend
payout ratio of around 35% on a consolidated basis.
Taking into account business results for the fiscal
year under review, the above dividend policy, etc.,
total dividends for the fiscal year ended December
31, 2018 were increased by 10 yen per share fromthe level of the previous fiscal year, to 60 yen per
share (a 25-yen interim dividend and a 35-yen
year-end dividend), and the consolidated dividend
payout ratio was 35.8%.

RESEARCH AND DEVELOPMENT

With regard to the Tamron Group’s research anddevelopment activities, the Opto-Science R&D Centerhas continued to engage in R&D from a long-term
perspective. The Optical Design & Engineering R&D
Unit, the Core Technology & Engineering R&D Unit,
the Integrated Core Technology R&D Unit and theProcess Technology & Engineering Unit worked todevelop individual elementary technologies, which
are the core technologies of optics, productionengineering, and electronics, and the engineering
departments of the individual Business Units
engaged in product development. R&D expenses in2018 were 4.373 billion yen.

Cash flows through investing activities
With expenses of 2.154 billion yen for property, plantand equipment, etc., cash flows from investing
activities resulted in a disbursement of 2.202 billion
yen (compared to 2.174 billion yen in the previous
consolidated fiscal year).
Cash flows through financing activities
There was a disbursement of 518 million yen for the
repayment of long-term borrowings and dividend
payments of 1.296 billion yen. Because of these andother factors, cash flows from financing activities
resulted in a disbursement of 1.861 billion yen(compared to 2.351 billion yen in the previous
consolidated fiscal year).

Net assets
The net balance of assets at the end of theconsolidated fiscal year came to 50.852 billion yen,
an increase of 912 million yen compared to the levelat the end of the previous consolidated fiscal year.
This mainly reflected an increase in retained earningsof 3.034 billion yen and a decline in foreign currencytranslation adjustments of 1.289 billion yen.

CAPITAL INVESTMENT/DEPRECIATIONTOTAL ASSETSNET ASSETS■ CAPITAL INVESTMENT■ DEPRECIATION

R&D EXPENSES/% NET SALES
R&D EXPENSES

DIVIDEND/PAYOUT RATIO
Anniversary dividend% NET SALES

interm dividend(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(%)

(Yen)

80,00080,000

5,000

5,000

10

100

8

80

69,906

66,03560,00064,70460,910 63,868

40,00060,00051,99549,001 47,321 49,940 50,852

4,000

3,812

3,000

2,429

40,000

3,654

2,478

3,365

2,484

2,425

2,000
20,0000

20,000

2014

2015

2016

2017

2018

0

3,562

4,000

3,164

2,047

1,000

2014

2015

2016

2017

2018

0

3,699

3,000
2,000

5.0

4,052

5.6

4,002
6.7

4,111
6.8

4,373
7.1

1,000

2014

2015

2016

2017

2018

0

2014

2015

2016

2017

2018

6

60

4

40

2

20

0

0

Year-end dividend% Payout ratio
(%)

100

96.2

80

50
35.7
30

60

55

5

30

39.0

60

50
45.7

30

25

35

60
40

35.8

20

25

25

25

25

2014

2015

2016

2017

2018

20
0

Including ¥5 65th anniversary dividends in 2015.

9

Tamron Co., Ltd.

Annual Report 2018 10

CORPORATE GOVERNANCE

1. Basic Policy

advisory bodies to enhance supervisory functions.

(3) Nomination Committee and Compensation(4) Management Meeting

Committee

Tamron has established management meetings

Ever since the Company was first established, we atTo the Board of Directors, Tamron appoints 12

Tamron have sought to forge good relationships withdirectors (two of whom are external directors) and 4

To enhance the independence and objectivity ofattended by directors and full-time corporate audi-

all stakeholders, achieve sustainable growth and en-

corporate auditors (three of whom are external audi-

Board of Directors functions concerning director ap-

tors to discuss and consider issues related to man-hance corporate value in line with our managementtors).

pointment, dismissal and compensation, Tamron has

agement and the execution of duties, and to quickly

established a Nominating Committee and Compensa-

respond to the changing management environment.

philosophy. In support of those goals, we have adopted the basic approach of ensuring fair and trans-(1) Board of Directors

tion Committee. Each committee is chaired by anparent management practices while developing a

Meetings of the Board of Directors are held once a

external director, with a majority of its members

highly effective corporate governance system thatmonth, in principle, attended by all Directors andexternal officers (external directors and external audi-

seeks to improve the speed and efficiency of deci-

Corporate Auditors, for reviewing the execution oftors).

sion making and business execution.

duties by the Directors and deciding on important
issues as set forth in the basic policy of the Company

2. Corporate Governance System Overview

and the Companies Act.

Corporate Governance Structure

Tamron is a company with corporate auditors andincludes a Board of Directors that functions as a(2) Audit & Supervisory Board

body to make important decisions and supervise theMeeting once a month in principle, the Audit &execution of operations, as well as an Audit & Super-

Supervisory Board audits the process of decision

visory Board as an auditing body that is independent

making by the Board of Directors and the executionof the Board of Directors.

of duties by Directors, by attending the Board of

Tamron also appoints multiple independent external directors possessing a wealth of knowledge,

General Meeting of Shareholders

Election/Dismissal

Directors meetings and checking approval docu-

Election/Dismissal

Board of Auditors(Corporate Auditors and Coordination
Independent Auditors)

ments.

expertise and independence and has set up a Nomi-

Election/Dismissal

Coordination

Accounting Auditor

Coordination

nating Committee and Compensation Committee as

Board of Directors(Directors and External Directors)
Nomination
Committee

Management (As of May 1, 2019)

Corporate Auditors

President & CEO
Shiro Ajisaka

Audit & Supervisory Board Member
Tsutomu Tezuka
Takashi Hirayama2
Tadahiro Tone2
Masaya Nara2

Corporate Vice Presidents
Shogo Sakuraba
Masayuki Abo
Senior Managing Director
Hiroshi Kawanabe
Managing Directors
Koji Masunari
Yasuki Kitazume
Directors
Hiroshi Otsuka
Shenghai Zhang
Makoto Otani
Tomohide Okayasu
Yuichi Sato 1
Harumi Katagiri 1

Compensation
Committee

President & CEO

Board of Directors

Notes: 1. Independent Director
2. Independent Corporate Auditor

CSR Committee

Hideyuki Nonaka
Toshikuni Tateno
Yoshinori Narita
Chaitang Ho
Jie Chen
Emiko Ushida
Masato Naraoka
Mikio Kimura
Naoto Shiga
Shigehisa Arima
Takashi Sawao
Gregg Maniachi

Coordination

Internal Audit &Supervision Board

Management Meeting
Internal Audit

Compliance Committee

Each Department/Subsidiary

POLICY AND PROCEDURES FOR NOMINATIONOF DIRECTOR CANDIDATES AND CORPORATE
AUDITOR CANDIDATES
Nomination policy

discussions/consideration and accurate and prompt
decision-making will be undertaken and appropriate
risk management as well as business execution will
be made.

The Board of Directors shall consist of an・For candidates for directors, while valuing diversity

appropriate number of people of up to 15 persons,in terms of gender, age, nationality, experience andand the viability of the Board shall be secured inother aspects, candidates shall have extensive ability,

consideration of the diversity/balance that is able toknowledge, achievements, dignity and ethicalcover the individual functions and individual

standards.

b u s i n e s s divisions of the Company so that full

11 Tamron Co., Ltd.

Annual Report 2018 12

CORPORATE GOVERNANCECORPORATE GOVERNANCE

・To appropriately reflect extensive experience,

performance, etc. of individuals within the range of ahigh-level expertise or insight in its management, theremuneration limit resolved at the General Meeting

Company shall have multiple candidates forof Shareholders.

Criteria for Assessing the Independence of Independent Directors andOutside Audit & Supervisory Board Members

independent directors who satisfy the criteria for

The purpose of “medium and long-term incentive

independence set by the Company and who canremuneration,” a performance and stock-based

The Company considers that an independent director or an outside Audit & Supervisory Board member (hereinaf-

play the role of a supervisory and advisory function

remuneration, is to clarify the link between businesster, an “outside executive officers”) is independent if he/she satisfies the standards for independence specified byin its management from an independent standpoint.

performance, stock prices, and directors’Tokyo Stock Exchange and does not fall under any of the following items.

・Taking into account diversity as well as extensive

remuneration and further heighten awareness ofability, knowledge, experience, dignity and ethicalcontributing to the improvement of medium- andstandards, candidates for corporate auditors shalllong-term business performance and the increase of

have a high level of expertise and insight incorporate value.

corporate management, legal affairs, financial affairs,

Regarding the system, the Trust established as aaccounting, etc. As for corporate auditors, theresult of the monetary contribution made by theCompany shall have multiple candidates who satisfy

Company acquires the Company shares and delivers

the criteria for independence set by the Company

the Company shares to directors through the Trustand can play the role of a supervisory and advisory

based on points awarded in accordance with thefunction in its management.

position and performance pursuant to the shareissuance rules specified by the Board of Directors

Procedures for nomination decision-making

・Director candidates shall be determined by thewithin the range of a remuneration limit resolved by

1.Executing person of the Company and its subsidiaries (hereinafter, the “Group”).
2.The Group’s major business partner (business partner who has received payment from the Group in an aggregate
amount equaling no less than 2% of its annual consolidated sales) or its executing person.
3.The Group’s major business partner (business partner who has made payment to the Group in an aggregate
amount equaling no less than 2% of its annual consolidated sales) or its executing person.
4.Executing person of the Group’s major lender (lender from whom the Group has borrowed funds equaling no lessthan 5% of the Group’s consolidated net assets).
5.The Group’s large shareholder (person holding no less than 10% of voting rights, directly or indirectly) or its
executing person.
6.Representative partner or partner of audit firm which conducts accounting audits of the Company.

the General Meeting of Shareholders. The directors

7.Consultant, attorney, certified public accountant or other persons who provide professional services who annually

Board of Directors after deliberation by theshall be provided with the Company shares at thereceive no less than 10 million yen in cash or other property benefits, other than executive compensation, from

Nomination Committee with an independent director

time of their retirement, in principle. Levels of

the Company.

serving as the Chairman.

achievement towards the Company’s mid-term

・Corporate auditor candidates shall be determinedby the Board of Directors after obtaining approval
from the Audit & Supervisory Board.

management plan, including ROE, shall also beassessed.
Independent directors shall be paid the baseremuneration only.

POLICY AND PROCEDURES FOR DETERMINING
DIRECTORS’ REMUNERATIONThe Company shall review the remuneration system

ANALYSIS/ASSESSMENT OF THE VIABILITY OF
THE ENTIRE BOARD OF DIRECTORS

for directors, and the system shall consist of “base

The Company conducts a survey of the directors andremuneration,” a fixed remuneration, “short-term

corporate auditors regarding the composition andincentive remuneration,” a bonus in accordance with

operation of the Board of Directors to self-assess thethe business performance for a single year, andviability of the overall Board of Directors.

“medium and long-term incentive remuneration,” aAt present, discussions that contribute to theperformance and stock-based remuneration. The

sustainable growth of the business and therevision of a bonus for directors was determined atenhancement of corporate value are being held. As

the 71st Ordinary General Shareholders’ Meeting on

for the governance function, the supervision ofMarch 28, 2018. Separately from this, thebusiness execution and audit independence are

introduction of performance and stock-based

functioning effectively. We therefore acknowledge

remuneration was resolved at the Meeting.

that the viability of the entire Board of Directors is“Base remuneration,” a fixed remuneration, andprovides grant in aid of no less than 10 million yen.
9.Executive person of a company with which the Company has relationships through outside executive officers;10.Spouse or relative within the second degree of relationships of any person listed in 1 through 9 in the above(excluding those who are not important).
11.Any person who has fallen under 1, above, even once in the past, or
12.Any person who has fallen under any person listed in 2 through 10 in the past three years.

generally and appropriately secured.

“short-term incentive remuneration,” a bonus in

Based on the survey results, the Company

accordance with the business performance for arecognizes shared issues and strives to review the

single year, shall be determined by the Board ofcomposition and size or frequency of the Board of

Directors through the deliberation of the

Directors and the remuneration system.

Compensation Committee with an independent

The Company shall continue the discussions anddirector serving as the Chairman, considering theverification based on the survey results and commit

position, degree of contribution, industry standard or

to further enhancing the viability of the Board ofstandards of other companies of the same size, andDirectors.

13 Tamron Co., Ltd.

8.Administration officer or other executive persons of an organization, etc. to which the Group annually donates or

Annual Report 2018 14

BUSINESS & OTHER RISKSCONSOLIDATED BALANCE SHEETS

The following section provides an overview of the

5. Intellectual property rights

issues related to the business results and financial

The Group undertakes investigations, negotiations

position of the Group that may have a material effectand applications, and also takes other necessary

As of December 31

on the decisions of investors.

steps to protect its rights related to intellectual prop-

Assets

The forward-looking statements in this text repre-

erty rights and avoid any related issues. In the event

sent the judgment of management as of March 27,

of a dispute over intellectual properties occurring be-2019.

tween the Group and a third party, the Group’s business results may be significantly affected.

1. Dependence on specific customers

Millions of Yen

2017

2018

Cash and deposits¥19,431¥22,438

Notes and accounts receivable–trade

14,061

13,407

Finished goods

6,392

6,364

3,098

3,461

Current assets

Sales to Sony Corporation’s group companies ap-

6. Laws and regulations

Work in processproximately 24% of the Group’s sales, (results for the

The Group strives to comply with international andfiscal year ended December 31, 2018). As a result,Raw materials and supplies

982

985

domestic laws and regulations, government permits,changes in the strategies and policies and businesslicenses, regulations and so forth that are relevant toDeferred tax assets

360

289

relationships of this company may significantly affect

the Group’s businesses. In the event of a violation of

1,093

1,168

the Group’s business results.

laws or regulations or the filing of a suit due to unin-

Allowance for doubtful accounts

(28)

(25)

tended reasons, the Group’s business results may be

Total current assets

45,39248,091

13,295

13,131

2. New businesses

Othersignificantly affected.

It is the Group’s policy to foster and expand new

Non-current assets

businesses. In the event that the Group decides to

7. Impairment loss

scale back or withdraw from a new business due to

In cases where the market value of the Group’s

intensifying price competition, rapid technologicalassets declines significantly or where the profitability

innovation, drastic changes in market needs and soof its business deteriorates, impairment loss will be

Accumulated depreciation(7,513)(7,869)forth, the Group’s business results may be significant-recorded according to the accounting standards forly affected.

impairment of assets, and this may significantly affect

Buildings and structures, net

5,781

5,261

19,385

18,555(14,403)(14,120)

4,982

4,434

20,186

20,551(18,188)(18,755)

1,998

1,796

the Group’s business results.
3. Dependence on specific suppliers
The Group procures raw materials, components, etc.

8. Effects of exchange rate fluctuations

from numerous external suppliers. For the procure-

The Group conducts transactions with overseas sub-ment of glass materials, in particular, it relies on limit-

sidiaries in foreign currencies, and some of the trans-

ed supply sources.

actions with international and domestic business

Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net

Accumulated depreciation

If these raw materials, components, etc. are notpartners in foreign currencies. Accordingly, fluctua-

available in the quantity or price that the Group hastions in exchange rates may significantly affect the

Land

961

1,155

planned for any reason, and the Group is unable tocompetitiveness of the Group’s products in overseas

Construction in progress

894

625

produce the products in the planned quantity, etc., itmarkets, its export profit, business results, etc.

Total property, plant and equipment

14,61813,274704

632

will fail to carry out its responsibility of delivery tocustomers, and this may significantly affect its busi-

9. Other risks

ness results.

In addition to the above, if there arise unanticipatedIntangible assets
Investments and other assets

political or economic factors, changes in tax systems

Investment securities

2,811

2,336

4. Product defects

or tax rates that have adverse effects, or events ofDeferred tax assets

115

132

The Group has developed advanced quality assur-

social turmoil, etc. due to acts of terrorism, wars, nat-ance systems. In the unlikely event of the occurrenceural disasters, contagious diseases or other factors in

Other

267

269

of a defect in its products that may lead tothe countries or regions where the Group conducts

Allowance for doubtful accounts

(40)

(32)

large-scale product liability, the Group may incur sig-

business, this may significantly affect the Group’s

3,153

2,705

nificant expense or lose public confidence, etc., any

business results.

18,476

16,613¥63,868¥64,704of which may significantly affect its business results.

15 Tamron Co., Ltd.

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

Annual Report 2018 16

CONSOLIDATED BALANCE SHEETSCONSOLIDATED STATEMENTS OF INCOME

Millions of Yen

Millions of Yen
As of December 31

2017

2018

Liabilities
Current liabilities
Accounts payable–trade¥3,675¥3,782

Short-term loans payable

2,676

2,531

Accrued expenses

3,109

3,026

629

551

Other

1,839

1,728

Total current liabilities

11,931

11,620

Income taxes payableNon-current liabilities
Long-term loans payable

468

467

Provision for share benefits

−

83

1,298

1,452

230

229

1,996

2,231

13,92813,852

Other
Total non-current liabilities
Total liabilities

Net assets
Shareholders’ equity
Capital stock

6,923

6,923

Capital surplus

7,432

7,432

Retained earnings

31,52734,561

(53)

(483)

45,82948,433

846

561

3,214

1,924

49

(67)

Treasury shares
Total shareholders’ equity

Years ended December 31

Net sales
Cost of sales
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Provision of allowance for doubtful accounts
Salaries and bonuses
Share-based compensation expenses
Technical research expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rent income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on retirement of non-current assets
Loss on abandonment of inventories
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Surrender value of insurance
Total extraordinary income
Profit before income taxes
Income taxes–current
Income taxes–deferred
Total income taxes
PlofitProfit attributable to owners of parent

2017

2018

¥60,496
39,89920,596¥61,815
39,91021,905

983
753
(5)
4,450
131
—
4,038
5,997
16,350
4,246

896
721
4
4,251
126
83
4,361
6,036
16,481
5,424

58
45
—
14
64
149
332

79
66
184
12
67
174
584

42
357
36
18
23
478
4,100

44
—
34
20
31
131
5,877

—
122
122
4,222
1,276
107
1,383
2,838
¥2,838

85
−
85
5,963
1,382
250
1,633
4,330
¥4,330

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

17 Tamron Co., Ltd.

4,110

2,418

49,94050,852¥63,868¥64,704

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions of Yen
Years ended December 31

2017

2018

PlofitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax¥2,838¥4,330

348
738
119
1,205
4,044
4,044

(285)
(1,289)(117)(1,692)
2,637
2,637

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of parent

Annual Report 2018 18

CONSOLIDATED STATEMENTS OF CASH FLOWSCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

Millions of Yen
Millions of Yen

2017

Balance at beginning of current period

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity¥6,923¥7,432¥30,114¥(53)¥44,416

Changes of items during period
Dividends of surplus(1,425)(1,425)

Profit attributable to owners of parent

2,838

2,838
(0)
—

(0)

Purchase of treasury shares
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

—

—

1,412

(0)

6,923

7,432

31,527(53)

1,412
45,829Millions of Yen
Accumulated other comprehensive income

Year ended December 31

Balance at beginning of current period
Changes of items during period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment¥498¥2,475Remeasurementsof defined benefit
plans

¥(69)

Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares

Total
accumulated
othercomprehensive
incomeTotal net
assets¥2,905¥47,321——(1,425)

—

2,838
(0)

348

738

119

1,205

1,205

Total changes of items during period

348

738

119

1,205

2,618

Balance at end of current period

846

3,214

49

4,110

49,940Net changes of items other than shareholders' equity

2018

Profit before income taxes¥4,222¥5,963

Depreciation

3,562

3,164

Increase (decrease) in net defined benefit liability

(64)

155

Increase (decrease) in provision for share benefits

—

83

(104)

(146)

Interest expenses

42

44

Loss (gain) on sales of investment securities

—

(85)

Loss on retirement of property, plant and equipment

36

34

Surrender value of insurance

(122)

—

Decrease (increase) in notes and accounts receivable-trade

(367)

(65)

Decrease (increase) in inventories

(192)

(697)

Increase (decrease) in notes and accounts payable-trade

543

608

Increase (decrease) in accrued expenses

204

(8)

Other, net

991

(207)

Subtotal

8,752

8,841

Interest and dividends income received

104

146

Interest expenses paid

(42)

(44)

Income taxes paid

(1,153)(1,419)Net cash provided by (used in) operating activities

7,661

7,523

(2,390)(2,154)Purchase of intangible assets

(60)

(125)

Purchase of investment securities

(16)

(2)

Proceeds from sales of investment securities—

147

Proceeds from cancellation of insurance funds

260—

Cash flows from operating activities

Shareholders’ equity

Year ended December 31

2017Years ended December 31

Interest and dividends income

Cash flows from investing activities
Purchases of property, plant and equipment

Millions of Yen

2018
Shareholders’ equity

Year ended December 31

Balance at beginning of current period

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity¥6,923¥7,432¥31,527¥(53)¥45,829

Changes of items during period
Dividends of surplus(1,296)

Profit attributable to owners of parent

4,330

Purchase of treasury shares(1,296)

Payments of loans receivable

(6)

(2)

4,330
(429)
—

Collection of loans receivable

13

8

(429)

Other, net

26

(72)

Net cash provided by (used in) investing activities(2,174)(2,202)

Net increase (decrease) in short-term loans payable

(372)

(16)

Proceeds from long-term loans payable

216

400

Repayment of long-term loans payable

(766)

(518)

(0)

(429)

(1,427)(1,296)(1)(1)

Net cash provided by (used in) financing activities(2,351)(1,861)

Effect of exchange rate change on cash and cash equivalents

265

(452)

Net increase (decrease) in cash and cash equivalents

3,401

3,006

Cash and cash equivalents at beginning of period

16,03019,431

Cash and cash equivalents at end of period¥19,431

22,438Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

—

—

3,034

(429)

2,604

6,923

7,432

34,561(483)

48,433

Millions of Yen
Accumulated other comprehensive income

Year ended December 31

Balance at beginning of current period
Changes of items during period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment¥846¥3,214Remeasurementsof defined benefit
plans

¥49

Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares

Total
accumulated
othercomprehensive
incomeTotal net
assetsPurchase of treasury shares¥4,110¥49,940——(1,296)

—

4,330
(429)

(285)

(1,289)(117)(1,692)(1,692)

Total changes of items during period(285)(1,289)(117)(1,692)

912

Balance at end of current period

561

1,924

(67)

2,418

50,852

Net changes of items other than shareholders' equity

19 Tamron Co., Ltd.

Cash flows from financing activities

Cash dividends paid
Other, net

Annual Report 2018 20

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEGMENT INFORMATIONRELATED INFORMATION

1. Outline of reporting segments

Year ended December 31, 2018 and 2017

reviewed by the Board of Directors to determine resource allocation and evaluate business performance. The Company
for its products and operates its business activities.
Accordingly, Tamron has the following three reportable segments based on these business divisions that are categorizedaccording to products: Photographic Products, Optical Components and Commercial/Industrial-use Optics. The “Photographic Products” manufactures and sells Interchangeable lenses for SLR cameras. The “Optical Components” manufacturesand sells Camcorder lenses, Digital still camera lenses, and Optical device units. The “Commercial/Industrial-use Optics”
manufactures and sells Surveillance camera lenses and Automotive lenses.
2. Information on sales, income, assets, liabilities and other items by reporting segment for fiscal 2018 and 20172017
Opticalcomponents

Commercial/
Industrial use
optics

Total

Adjustment(Note1)

Net sales:(Note2)¥3,375¥11,827¥60,496¥ −¥60,496

45,292

3,375

11,82760,496−60,496

Operating income (loss)

5,818

(24)

827

6,622

(2,376)

4,246

Assets36,582

2,472

8,708

47,764

16,104

63,868Depreciation

2,578

235

674

3,488

73

3,562

Increase in tangible and intangible fixed assets

1,733

308

349

2,391

33

2,425

Intersegment sales
Total

−

−

−

−

−

−

Notes:
1. (1) Adjustment of segment profit totaled (2,376) million yen is due to unallocated operating expenses consisted principally of
expenses related to general affairs, accounting and other departments of the Company.
(2) Adjustment to segment assets includes corporate level assets, which consist principally of surplus investment funds (cash anddeposits), long-term investment funds (such as marketable securities), and non-segment specific.
2. Segment profit or loss is adjusted to operating profit of consolidated statements of income.

2018
Opticalcomponents¥45,640¥3,436

Commercial/
Industrial use
opticsTotal¥12,738¥61,815

Net sales:
Sales to external customers
Intersegment sales

−

−

−

−

Adjustment(Note1)

Consolidated¥ −¥61,815−(Note2)−45,6403,436

12,73861,815−

Operating income

7,113

80

813

8,008

(2,583)

5,424

Assets32,899

2,833

9,473

45,206

19,49764,704

Depreciation

2,170

325

594

3,090

73

3,164

Increase in tangible and intangible fixed assets

1,543

137

317

1,998

49

2,047

Total

Europe

Asia

Other

Total

2017

¥17,238¥8,897¥12,310¥20,496¥1,552¥60,4962018¥17,802¥8,910¥11,845¥21,571¥1,686¥61,815

Note: Sales are grouped by country or region, based on customer location.

(2) Property, plant and equipment

Millions of Yen

North America

Europe

Asia

Total

2017

¥6,965¥243¥271¥7,137¥14,618

2018¥6,685¥238¥235¥6,115¥13,274

2. Information by major customer

Millions of Yen

Name of company

61,815

Notes:
1. (1) Adjustment of segment profit totaled (2,583) million yen is due to unallocated operating expenses consisted principally of
expenses related to general affairs, accounting and other departments of the Company.
(2) Adjustment to segment assets includes corporate level assets, which consist principally of surplus investment funds (cash anddeposits), long-term investment funds (such as marketable securities), and non-segment specific.
2. Segment profit is adjusted to operating profit of consolidated statements of income.

Relevant segments

Net sales

2017

Nikon Corporation¥6,578

Photographic Products

Sony Global Manufacturing & Operations Corporation¥9,403

Photographic Products
Optical Components
Commercial / Industrial-use Optics¥9,806

Photographic Products
Optical Components
Commercial / Industrial-use Optics

2018Sony Global Manufacturing & Operations Corporation

3. OtherQuarterly financial information for the year ended December 31, 2018
Millions of yen, excluding net income per share-basic

1Q

2Q

3Q

For the year ended
December 31, 2018¥12,447¥28,572¥43,903¥61,815

Profit before income taxes

415

2,176

3,695

5,963

Profit attributable to owners of parent

303

1,585

2,801

4,330

11.69

61.26

108.46167.80Net sales

Millions of Yen

Photographic
products

North America

Consolidated¥45,292

Sales to external customers

Millions of Yen

Japan

Japan

Millions of Yen

Photographic
products

1. Information by geographical area
(1) Sales

Net income per share-basic (yen)Note: Amount per each quarter is accumulated amount.
Yen

Net income per share-basic

1Q

2Q

3Q

4Q

¥11.69¥49.82¥47.27¥59.40IMPACT OF FOREIGN EXCHANGE RATE FLUCTUATIONS
2018

Yen

Millions of Yen

Exchange Rate

Impact20172018

Net Sales

USD

112.17110.45

(550)

(20)

EUR

126.73130.38

260

220

−

−

(60)

(60)

(350)

140

Others
Total−−

Operating Income(Impact on 2018 Actual performance)

Forecast 2019

Yen

Exchange Rate

21 Tamron Co., Ltd.

Millions of Yen

Impact of ¥1 appreciation

Assumption 2019

Net Sales

USD

110.00(330)

Operating Income
(40)

EUR

125.00(90)(80)

Annual Report 2018 22

HISTORY

Company History
1950

1958

1970

1979

1986

2000

2012

Taisei Optical Equipment Manufacturing is founded in Urawa
City, Saitama Prefecture

The Tamron Brand is registeredas a trademark

The Company name is changed
to Tamron Co., Ltd.

Sales subsidiary is established in
the United States

Molding plant is established in
Aomori Prefecture (Now the
Owani Plant)

Sales subsidiary in France isestablished

Sales subsidiary in Russia is establishedTamron’ s corporate symbolat the time

1982
Sales subsidiary is establishedin West Germany

1952

1969

1984

Taisei Optical Equipment Manufacturing Inc. is established withcapital of 2.5 million yen

The Hirosaki Plant is established in
Aomori Prefecture

Plant is established in Aomori
Prefecture(Now the Namioka Plant)
Tamron registers with Japan
Securities Dealers Associationfor over-the-counter trading

1995

2005

2013

Tamron acquires medium-format manufacturing and sales
company (Bronica Co., Ltd.)(subsequently subjected toabsorption-type merger)

Construction of new molding
plant (head office) is completed

Sales subsidiary in India isestablishedOrigin of the Company NameFounding member Takeyuki Arai (right)

1950

The Urawa Plant at the time

1960

The name Tamron comes from the surname of
Uhyoue Tamura, who laid the foundations of
Tamron’s optical technologies. After the namewas launched as a product, the Company
name was changed to Tamron on the occasionof the Company’s 20th anniversary. Throughout
its history, Tamron has promoted a corporate
culture that values its engineers.

1970

Production subsidiary in Vietnam isestablished

Sales subsidiary in China isestablished

1997

2006

2015

Sales subsidiary in Hong Kongis establishedTamron is listed on the 1st section of
the Tokyo Stock Exchange

Kouyu Kosan Co., Ltd. is acquired(subsequently subjected toabsorption-type merger)

Production subsidiary in China
is established2017
Toumeigiken Co., Ltd. isacquired

Uhyoue Tamura

1980

1990

2000

2010

Product History
1950

1966

1981

1992

2000

2016

Manufacture of cameras andbinocular lenses started

Production of master lenses, ultra-precision lenses
and prisms begins

Development and production of
the 6x zoom video camera lensbeginsThe AF28-200mm (71D),
the world’ s smallest andlightest all-in-one zoom
lens for single-lens reflex
cameras, is released

645 format rangefinder camera
RF645 is released

Sale of compact
camera modules
begins“Tamron Adapt-A-Matic” range
of interchangeable mountlenses is developed

1957
135mm F/4.5 lens is developedfor 35mm single lens reflex
camerasThe “T mount,” the world’s firstinterchangeable lens mount for
single-lens reflex cameras, isdeveloped

23 Tamron Co., Ltd.

1983

2006

2017

Integrated video camera
lens is developed

The Beginning of ALL-In-One Zoom Lenses

Sale of lenses for mobile phones
beginsSale of drone lenses begins

1986

The original model for the all-in-one
zoom lens was a rounded piece of graphpaper the size of a cigarette packet.
Starting with this first product, Tamron
has made successful advancements withgreater focal distances, more compact
and lighter designs and new mounting
mechanisms, establishing Tamron’s
position as the go-to manufacturer of
all-in-one zoom lenses.

Production of lenses for ITV and broadcasting
begins1969
Production of interchangeablel e n s e s f o r s i n g l e - l e n s r e fl e x
cameras, television lenses andphotocopier lenses, etc. begins

Tamron leads the industry
in the development ofvarifocal lenses for CCTVs

The graph paper serving as the original model forthe all-in-one zoom lens, featuring the signature of
top management at the time

2008
Sale of automotive lenses begins

Tamron wins EISA awards
for 13 consecutive years

Annual Report 2018 24

COMPANY PROFILE(As of December 31, 2018)

Tel:+81-48-684-9111
Fax:+81-48-683-8289
http://www.tamron.com

Overview
Company Name:
Tamron Co., Ltd.

Employees:
1,055 (non-consolidated)
5,046 (consolidated)

Founded:November 1, 1950

Stock exchange:
First section, Tokyo Stock Exchange

Incorporated:
October 27, 1952
Head office:1385 Hasunuma, Minuma-ku, Saitama-shi,
Saitama 337-8556, JAPANSTOCK OVERVIEWGROUP NETWORK(As of December 31, 2018)

Production Facilities
Number of shares issued:
25,950,000 shares

Top10 Shareholders
No

Number of shares per unit:
100 shares
Number of shareholders:
4,930 shareholders
Balance date:
December 31
Scheduled Annual Shareholders Meeting:
March

Percentage ofShares Hold

New Well Co., Ltd.

4,898

18.89%

2

Sony Corporation

3,129

12.07%

3

Japan Trustee Services Bank, Ltd. (trust account)

1,558

6.01%

4

Saitama Resona Bank Limited

1,122

4.33%

5

Japan Trustee Services Bank, Ltd. (trust account 9)

1,038

4.00%

6

The Master Trust Bank of Japan ,Ltd. (trust account)

893

3.44%

7

Nippon Life Insurance Company

580

2.23%

GOVERNMENT OF NORWAY

542

2.09%

460

1.77%

9

BNP PARIBAS SEC SERVICES LUXEMBOURG/ JASDEC/ABERDEEN GLOBAL CLIENT ASSETS

10 Japan Trustee Services Bank, Ltd. (trust account 5)

Eligibility date for interim dividend payments:
June 30

Number of Shares(Thousands)

1

8

Eligibility date for year-end dividend payments:
December 31

Name

Total

346

1.33%

14,57056.21%

Note: The 3,129 thousand shares owned by Sony Corporation are fiduciary assets trusted to Mizuho Trust& Banking Co., Ltd. In regard to the execution of voting rights and jus disposition of the shares, Sony
Corporation reserves the right to instruct pursuant to the provisions of the trust contract between thetwo parties.

Transfer Agent:
Sumitomo Mitsui Trust Bank, Limited

Hirosaki Plant
3-2 Shimizu 3-chome, Hirosaki-shi, Aomori
036-8254,
JAPAN

Owani Production Dept., Hirosaki Plant
31-1 Maeda, Hachimandate, Owani-machi,
Minamitsugaru-gun,
Aomori 038-0243, JAPANTAMRON OPTICAL (FOSHAN) CO., LTD.
No. 76 West of Langbao Road, Changcheng
District, Foshan, Guangdong,
CHINA

TAMRON OPTICAL (VIETNAM) CO., LTD.
Plot No. 69B&70A, Noi Bai Industrial
Zone, Mai Dinh Commune, Soc Son
District, Hanoi,
VIETNAM

Namioka Plant
64-1 Shimoshimada, Kitanakano, Namioka,
Aomori-shi, Aomori 038-1325,
JAPAN

Subsidiaries Overseas
TAMRON USA, INC.
10 Austin Boulevard, Commack, NY 11725,
USA

TAMRON Europe GmbH.
Robert Bosch-Str. 9, 50769 Cologne,
GERMANYTAMRON France EURL.
5, avenue Georges Bataille, F-60330
Le Plessis-Belleville,
FRANCETAMRON INDUSTRIES(HONG KONG) LIMITED
Unit 908, 9/F, Elite Centre, 22
Hung To Road, Kwun Tong, Kowloon,
Hong kong

TAMRON OPTICAL (SHANGHAI) CO., LTD.
Room 1707, Ruijin Building, No. 205,
Maoming South Road, Shanghai 200020,
CHINA

Tamron (Russia) LLC.
Unikon Business Center 2F No. 4,
Plekhanova Street 4a, Moscow, 111123,
Russian Federation

Composition of Shareholders
Note: Excluding odd lot.

■ Individuals and Others■ Financial Institution■ Foreign Shareholders■ Securities Firm

14.04%
20.59%

40.76%
1.41%■ Other Corporation

23.20 %

25 Tamron Co., Ltd.

TAMRON INDIA PRIVATE LIMITED
805, 806&807, 8th floor, Vatika City Point, MG Road,
Gurgaon-122001, Haryana, India

Annual Report 2018 26