Company Overview
Optorun Co., Ltd.
September 3, 2023

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Table of Contents

Corporate Profile
Optical thin-film technologies
Strengths and Growth Strategies
Shareholder Returns

Corporate Profile3

Corporate Profile
Establishment

Founded on August 25, 1999 (24 years ago)

Representative

CEO and Representative Director

Common stock¥400 million

Head Office6-1-1 Fujimi, Tsurugashima-shi, Saitama-ken, Japan

R&D Center

10-1 Takeno, Kawagoe-shi, Saitama-ken, Japan

Listing

TSE Prime (Securities Code: 6235)

In August 2023, the head office was relocated toTsurugashima City, Saitama Prefecture, with the aim offurther expanding the business platform.
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Optorun viewed by number
Net sales
Results for FY12/22

Operatingincome

Total assets
Results for FY12/22

Results for FY12/22¥34.3 bn
Up 11.0% from the previous year

ROE
Results for FY12/22

14.0%¥7.4 bn¥82.9 bn

Up 6.0% from the previous year

Number ofemployees

607
As of the end of December 2022

Marketcapitalization¥81.6 bn
As of August 25, 2023

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Revenue breakdown by business segment
Others Smart watch Parts services

LED LED Mini LED Micro LED

50 bn
LED14bn

Year 2022Net sales
IoT Automobiles
 Semiconductors
 Medical equipment AR/VR Opticalcommunication
network

Smartphone Camera modules
 Touch panel
 Chassis decoration

IoT 84bn

Smart phone

187bn yen¥34.3 bn
Camera lens

9 bn
Camera lens
 Single-lens reflex camera Surveillance camera
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History

Smart phone
Electric vehicles
Solar cells
Lithium battery
Opticalcommunication
network

Solar cells
Digital home
appliances

LED
Opticalcommunication

Opticalcommunic Sensing
ation
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Global Network

Afly Solution (Finland)
●R&D

Espoo
R&D Laboratory
Opened on May2023

Photo-dining technology(Shanghai)●Production●R&D
・ Evaporation
・ Sputtering
Photovoltaic
semiconductor
technology (Shanghai)●Production●R&D
Optorun Vina
●CS
●R&D

OptorunTsurugashima Head Office
Kawagoe: ●R&D

Shanghai
MiaoliKawagoe
Tsurugashima
Nanolytics
●R&D

Hanoi

July 2023
Establishment

Optorun USA●Marketing

Sunnyvale

July 2023
Establishment

Photo-dining
technology (Taiwan)●Production●R&D
・ Etching・ CVD

Expansion of 8 global bases, mainly in Asia

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Business model2

R&D/ Make-to-order Production

31

Offering comprehensive thin-film solutions

Understanding each customer’s needs
for quality and cost
Equipment

Process

After-sales service

Offers equipment
products for opticalthin-film deposition.

Depending on each design,
many parameters need to be
specified and programmed

Prompt response tooperational failures andother problems

Customers
Manufacturers of finished products, parts and modules
Use our equipment for depositing thin-film on their products and parts.

Providing total solutions of thin-film deposition
6

Optical thin-film technologies

10What is Optical thin-film?

Technologies for controlling the reflection andtransmission of light by skillfully utilizing theproperties of light
Examples of
Optical thin-film
 Anti-reflection film
 Augmented reflection film
 Wavelength selection filter
Bandpass filter
Infrared cut filter Decorative color membrane

Thin film
 Transparent conductive film
 Anti-smudge coating
 Scratch prevention

Incident lightForm thin-filmon the surface of
substrates

Glass, plastics, metals, etc.

Reflection light
Thickness
100nm(1/10,000,000m)

Multilayer
Optical thinfilm

Glass boards

Permeation light7

Optical thin-film in daily life

Optical thin-film is invisible but indispensable for everyday items.

8Smartphone application

Decorative membrane
3D decorative membrane(sputtering, ALD)

Flame-decorating
Flame-decorating film
membrane(Sputtering)(Sputtering)

Near infrared permeablefilm(Sputtering)Black membrane(Sputtering)
IR-cut filter(Sputtering)

Lens
Antireflection film
(Evaporation, ALD)
Hard anti-reflection / anti-smudge
coating / anti-glare coating(Sputtering, Etching)IR-cut filter(Evaporation)
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Automobiles application
Bandpass filter,
Reflective film
(Evaporation, Sputtering)

Antireflection film
(Evaporation, Sputtering)

Bandpass filter(Evaporation, Sputtering)

Augmented reflection film
(Evaporation)

Antireflection film
(Evaporation, Sputtering)

Decorative membrane(Evaporation, Sputtering)

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AR/VR application

3D camera(Sputtering)

Half mirror(Evaporation)

Micro display(ALD, Etching)

Diffraction grating
Wave Guide(ALD, Etching)
Lens surface(Evaporation, Sputtering)11

Thin-film deposition methods
Evaporation

Sputtering

ALD (Atomic Layer Deposition)
Reactant gas

Reactant gas

Inert gas

Vacuum chamber

Precursor(Ar)Vacuum chamber

Vacuum chamber

PlasmaSubstrate
Substrate

Depositedparticles

Electron beamAr+ ions
Substrate (wafer)

Sputter particles
Deposition
sourceElectrongun

Ar plasmaTargetCrucible
Exhaustgas

Heatingmechanism
Exhaustgas
Exhaust gas
12Equipment features
Ion beam-assisteddeposition

Sputtering

ALD

Low△

Low△High ∗Multi-layer capability

Height 0High ∗Low△

Running costs

Low ≫High△High△

Installation costs

Low ≫High△

High△

OTFC

NSC

ALDER

Film deposition method

3D deposition(capability to deposit film on
multiple dimensions of acomplex shaped substrate)

Representative equipment

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Strengths and Growth Strategies

18Optorun's Strengths-Providing Solutions
Product andtechnology① Productdifferentiation
enabled by cuttingedge technologies② In-housedevelopment of keycomponents

ProcessCustomer① Design capability ofthe optical thin-film② Know-how offerings
to customers forsetting film deposition
parameters.

① Developing businessmainly in East Asiaand the U.S., wherecustomers operate.
② Development of new
products through joint
R&D with customers

R&D activities on a global scale

Ability to provide solutions based on cutting-edge technologies

Sustainable creation of new markets
14Optorun‘s Strengths - Corporate Value Enhancement Cycle
Solution-based businessmodel based on cutting-edge
technologies

Acquisition of newtechnologies and market
development throughM&A and alliances

Financial resources
capable of continuously
investing in growth

Developing andmanufacturing products
near customers’
locations

Organizational reforms
that generate innovation

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Growth Strategy- Expansion of Business Domains“Optical Device” application area will remain as our core domain.
We are now expanding our domain into the fields of “Semiconductor
Optical Fusion” and further into “Electronic Devices”
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Growth Initiative – Developing a cutting-edge surface treatment technology
through a partnership with AIMechatec.

 Optical design Thin-film deposition(sputtering, evaporation, ALD) Dry etching Ink jet Nanoimprint Precision Alignment

Nanolysotics (joint venture) tolead the market with state-of-the-art surface treatment technology

17Growth Strategy - Medium-Term Sales Target

Target sales of ¥50 bn by 2025
Semiconductor-Optical Fusion and Electronic Devices will be the two new growthareas that drive Optorun to the next level as a global leader.

500

Sales composition image[Sector]ElectronicDevices20%

343

Semiconductor opticalfusion

Optical thin film

60%

20%

[DeviceSpecific]
Etching, etc.20%

ALD

20%
2022

Deposition + sputter

60%

2025
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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“semiconductor-optical 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.

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Growth Strategy-Sustainability InitiativesEnvironment

Society

Global environmental conservation

Technological contributions toenrich lifestyles

Technological contributions that
contribute to the health andsafety of people[Example of film deposition][Example of film deposition]

・Procurement mindful of environment
・Thorough treatment of industrial wastewater andwater conservation
・Thorough exhaust gas treatment and management
・Reduction of waste and promotion of recycling
・Development of products that conserve energy<Corresponding SDGs item>
and resources

Governance・Including lens filters in surveillance cameras
Biometric authentication for security
・For automotive driving technology
Devices such as sensors
・X-ray equipment
・Research support and contribution ofbiosensors<Corresponding SDGs item>

Corporate revitalization

Sound management
・Corporate Governance・Compliance・Risk Management

・Biometric identification of smartphones,
Protection of touch panel and chassis
・Indispensable for optical communication
DWDM filter
・Vehicle's instrumental panel
・Improvement of LED brightness andpower saving
・Prevention of reflection of AR/VR devices
Protection of the chassis<Corresponding SDGs item>

・Utilization of human resources regardless ofgender or nationality
・Global development of a diverse workforce
・Initiatives to improve employee motivation
・Health and Safety of workforce<Corresponding SDGs item>

Aim for a sustainable future
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Shareholder Returns

26

Shareholder Returns

Invest to attainfuture growthProfit to be directed towards growth opportunities,
including R&D/Capex spending on leading-edge
technologies, and M&A/Strategic Alliance forbusiness expansion and technology acquisition.

Dividend

Maintain meaningful shareholder return by targeting
dividend payout ratio at about 30%.

Investment in future growth will remain the top priority while
maintaining stable payout of dividend.
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Shareholder Returns
500

Sales
428

Net Profit

374

400

(Unit: 100 million yen)

355

343

308

300
200

91

100

63

6862

In 2021

In 2022

In 2023(Forecast)670
In 2019

In 2020

Dividends per share
10080

27.7%

(Unit: Yen)

Dividend payout ratio

35.1%

31.4%

33.7%

31.4%

50505050

2020 122021 122022 122023 12(Forecast)

60
40206002019 1245.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%

Cash dividends for the year 2023 are forecast to be ¥50 per share.

22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 August 25, 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:049-299-8199

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