Second Quarter 2023

Financial Results

August 8, 2023

Tamron Co., Ltd.

(Code: 7740)

Tamron Co., Ltd.

Contents

I. FY2023 Summary

    1. 1st Half Summary
    2. FY2023 Forecast
    3. Medium-termmanagement plan "Vision 23" and its Progress
      1. Consolidated Results
      2. Trends by Segment
    5. Investment strategy & Initiatives to improve corporate value
  2. 1st Half Financial Results
    1. 1st Half Financial Results
    2. 1st Half Performance Variation Factors
    3. 1st Half Results by Segment

① Photographic Products

②Surveillance & FA Lenses

③Mobility & Healthcare Products, Others

  1. FY2023 Financial Forecast
    1. FY2023 Financial Forecast
    2. FY2023 Forecast by Segment ① Photographic Products
      ②Surveillance & FA Lenses
      ③Mobility & Healthcare Products, Others
  • Sustainability and ESG Initiatives
    1. Value Creation Process
    2. Main initiatives and results
    3. Expanding the scope of business

Ⅴ. Reference Data

  1. Financial Summary
  2. Capital Investment, Depreciation, and Research & Development Expenses
  3. Cash Flow Situation
  4. Cash Dividends Outlook and Key Performance Indicators
  5. Impact of Foreign Exchange Rate Fluctuations

2

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I. FY 2023 Summary

3

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I-1. 1st Half Summary

Business Environment

・Economy is on a gradual recovery trend, despite continued uncertainty due to the prolonged Russia's invasion of Ukraine, energy problems, high global inflation, interest rate hikes in various countries, etc.

  • The yen has been weakening significantly.

(JPY depreciated by 12 yen against both USD and EUR compared to the 1st half of 2022)

・Market environment: The market of interchangeable lens cameras and interchangeable lenses remained almost flat in volume but increased in value YoY.

Company's Results

・Net sales increased, and all profits (operating income, ordinary income, and net income) showed a double-digit increase compared to the same period of the previous year.

⇒Operating income on net sales achieved more than 10% in all segments.

・Gross margin increased by 3.4 percentage points as a result of controlling procurement costs and achieving lower product costs.(SG&A expenses including costs for exhibition participation and sales activities etc., have increased after Corona, compared to 1st half in 2022, and it was absorbed by the boost in gross profit.)

  • Operating income, ordinary income, and net income in the 1st Half reached our historic high for two consecutive years.
  • Increased the interim dividend by 5 yen

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Ⅰ -2. FY2023 Overview

Business Environment

  • The business environment for the second half remains uncertain due to the following factors: continuing global inflation, the impact of interest rate hike policies.
  • Higher component and material costs by rising prices of resources, and movements to adjust inventories in response to the alleviation of semiconductor shortages is expected.
  • The yen is expected to depreciate continually.

Company's Forecast

【Forecast for 2H】

・In the industrial sector, impacts due to delayed market recovery in China after shifting to with COVID policy and movements to adjust inventories are expected

  • SG&A expenses for sales activities and medium-to long term measures are expected to increase in addition to carry-over costs from the 1st half.
  • Our main photographic products business expected to remain strong with increased purchasing opportunities under with COVID policy.

【Changes in FY2023 Forecast】

Revised upward in both sales and profits

Net Sales

(billions of JPY)

Operating Income

16.4%

17.6%

【Forecast for the full year 】

Target to achieve double-digit growth in sales and profits. Forecast a record-high profit(operating income, ordinary income, and net profit) for the second consecutive fiscal year.

⇒Ensuring a profitable structure resilient to various changes while simultaneously pursuing investment and strategies for sustainable growth.

70.0

71.0

11.5

12.5

Feb. 8

Revised

Feb. 8

Revised

Original

Original

Forecast

Forecast

Forecast

Forecast

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Tamron Co. Ltd. published this content on 08 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2023 09:19:32 UTC.