TAMRON FY2023 Financial Results User Guide Product Information

: March 8, 2024
: TAMRON

Table of Contents

FY2023 Financial Results
Product Information
Specifications
Product Usage Instructions
I. Vision23 Review
II. Value Creation 26
III. FY2023 Financial Results
IV. FY2024 Financial Forecast
V. Reference Data
- Frequently Asked Questions (FAQ)
Q: What were the key achievements of the Vision23 medium-term
Q: How did different segments perform under the Vision23
- Read User Manual Online (PDF format)
- Download This Manual (PDF format)

FY2023 Financial Results

Product Information

Specifications

Brand: Tamron Co., Ltd.
Code: 7740
Medium-Term Management Plan: Vision23
New Medium-Term Management Plan: Value Creation 26
Financial Forecast: FY2024

Product Usage Instructions

I. Vision23 Review

The Vision23 medium-term management plan aimed to achieve
significant growth in net sales and operating income. It included
targets for different segments and focused on financial
strategies.

II. Value Creation 26

The new medium-term management plan, Value Creation 26,
positions the company for future success. It outlines business and
financial strategies, focusing on capital costs, stock prices, and
ESG/sustainability initiatives.

III. FY2023 Financial Results

The FY2023 financial results provide a summary of the year,
including operating profit variability factors and results by
segment, such as Photographic Products, Surveillance & FA
Lenses, and Mobility & Healthcare Products.

IV. FY2024 Financial Forecast

The FY2024 financial forecast outlines the expected performance
for the upcoming year by segment, including Photographic Products,
Surveillance & FA Lenses, and Mobility & Healthcare
Products.

V. Reference Data

Reference data includes financial summaries, capital investment
details, cash flow information, cash dividends outlook, key
performance indicators, and the impact of foreign exchange rate
fluctuations.

Frequently Asked Questions (FAQ)

Q: What were the key achievements of the Vision23 medium-term

management plan?

A: The key achievements included reaching targets ahead of
schedule, achieving record high operating income, substantial
growth in revenue, and doubling operating income in the final
year.

Q: How did different segments perform under the Vision23

plan?

A: The photographic products business achieved high growth and
profitability improvements. Automotive lenses sales exceeded 7
billion yen. However, surveillance and FA lenses experienced slow
sales growth and fell short of targets.

FY2023 Financial Results
February 8, 2024 Tamron Co., Ltd. (Code: 7740)

Contents

I. Review of the previous medium-term management plan “Vision23”
1. Consolidated Results of the “Vision 23” 2. Assessment of the “Vision 23” action plans by
segment
II. New medium-term management plan “Value Creation 26”
1. Positioning of the “Value Creation 26” 2. Outline of the “Value Creation 26” 3. Business Strategy of the “Value Creation 26” 4. Financial Strategy of the “Value Creation 26” 5. Management with a focus on capital costs and stock
prices 6. ESG/Sustainability Strategy
III. FY2023 Financial Results
1. FY2023 Summary 2. FY2023 Financial Results 3. Factors Affecting Operating Profit Variability 4. FY2023 Results by Segment
(1) Photographic Products (2) Surveillance & FA Lenses (3) Mobility & Healthcare Products, Others

IV. FY2024 Financial Forecast
1. FY2024 Financial Forecast 2. FY2024 Forecast by Segment
(1) Photographic Products (2) Surveillance & FA Lenses (3) Mobility & Healthcare Products, Others
V. Reference Data
1. Financial Summary 2. Capital Investment, Depreciation, and
R&D Expenses 3. Cash Flow 4. Cash Dividends Outlook and Key
Performance Indicators 5. Impact of Foreign Exchange Rate
Fluctuations

I. Review of the previous medium-term management plan “Vision23”

I.-1. Consolidated Results of the “Vision 23″

Medium-Term Management Plan”Vision23”

Net Sales Operating Income
(% Sales)
Exchange rate assumption

2020 48.4B.
3.6B. 7.4% 3.9

2023 Target
61.0B. 7.0B. 11.5%
More than 9%
USD/JPY:105 EUR/JPY:123

Billions of JPY

17.4%

19.1%

About Twice in Operating Income

12.9%

11.5%

7.4%
3.6 2020

13.6 11.0

7.4

7.0

2021

2022

2023

Operating Income Operating Income ratio

2023 Target

Net Sales Operating
Income (% Sales)

1st year 2021
57.5B. 7.4B.
12.9%
10.5
USD/JPY: 109.91 EUR/JPY: 129.95

2nd year 2022
63.4B. 11.0B.
17.4%
14.8%
USD/JPY: 131.63 EUR/JPY: 138.19

Final year 2023
71.4B. 13.6B.
19.1% 16.5%
USD/JPY: 140.42 EUR/JPY: 151.84

1st year realized the target of the operating income of Vision23 Achieved V-shaped quick recovery from the slump of COVID-19
2nd year accomplished the targets of Vison23 one year ahead of the schedule in all aspects of sales, operating income, and ROE.
Attained a record high operating income in 15 years (breaking through a milestone of 10 billion yen for the first time)
In the final year, we reached further growth. Substantially surpassed all targets of Vision23
(20% increase in revenue, about double increase in operating income Achieved a new record of operating income Raising ROE to more than 16

I.-2. Assessment of the Vision 23 action plans by segment

Results Our main photographic products business achieved high growth with a substantial improvement in profitability. Sales of automotive lenses achieved more than 7 billion yen, whereas,
the sales growth of the surveillance and FA lenses was slow and resulted in a significant shortfall in sales targets. Delay in new business creation. The path to commercialization is uncertain in the next medium-term plan. The target of achieving over 10% operating income in all segments was realized a year ahead of the plan, except the final year.

Photographic Products
Achieved the targets of net sales and operating income on net sales by a wide margin
Successful expansion of the mirrorless lineup 2020 End 8 2023 End 25 models
Compatibility with two new mounts High growth in the Chinese market

Surveillance & FA Lenses
End up with a considerable shortfall in the target of both sales and the operating income
Renewal of FA lens lineup, acquisition of OEM Slump of surveillance lens business in Chinese
and US markets. Downturn in demand for TV conference lens Slow down in 2023 due to inventory adjustment etc.

Mobility & Healthcare Products, Others
Achieved the targets of net sales and operating income on net sales by a wide margin Double-digit sales growth for three consecutive
years in mainstay automotive products. The medical business has been launched,
is steadily growing. While there is progress in technology themes,
commercialization remains uncertain.

Net Sales (Billions of JPY) Operating Income ratio
24.5%
20.4%
15.8%

33.6

42.0

45.5

26.4% 16%20%
53.0
36.5

Net Sales (Billons of JPY)
Operating Income ratio 12.5%

6.4%

5.1%

7.3%

More than10

17.0

9.1

9.4

11.2

9.8

2020

2021

2022

2023

2023 (Target)

2020

2021

2022

2023

2023 (Target)

Net Sales (Billions of JPY) Operating Income ratio
15.9% 13.1%

6.3%

5.7

6.2

6.7

17.3%

More than10

8.6

7.5

2020

2021

2022

2023

2023 (Target)

II. New medium-term management plan “Value Creation 26”

II.-1. Positioning of “Value Creation26”

Launch of the new medium-term plan “Value Creation26”

Medium-term plan 20182020

Vision23 20212023

“ValueCreation26” 20242026

Long-term vision

Under Vision23’s achievements, we will overcome challenges, achieve high- quality leaps, and maximize corporate value through new endeavors.

Basic policy Grow existing segments steadily
and create new business
Create a workplace with a fulfilling environment and high corporate value

Medium-term plan 20182020

Medium-term plan “Vision23” 20212023

New Medium-term plan “Value Creation26”
20242026

Aiming to become a company that is respected and truly needed
by society.

Portfolio optimization Development & growth of new business Establish a functional strategy Development of human resources & Activate the organization Improve Profitability of core business Expand business in growing fields Improvement of corporate constitution
Sustainable Enhancement of Corporate Value

II.-2. Outline of “Value Creation26” Basic Framework

“Value Creation26”
Under Vision23’s achievements, we will overcome challenges, achieve high- quality leaps , and maximize corporate value through new endeavors.

Business Strategy
Deepen the optimization of business portfolios Create and nurse new businesses

Financial Strategy
Build an efficient and stable management structure Strengthen shareholder return policy

Building a Sustainable Business Structure
ESG/Strategy for Sustainability
Reform corporate governance structure Enrich management infrastructure/human capital Continue efforts toward carbon neutrality and reduce
environmental impact

II.-2. Outline of “Value Creation26” Management Numerical Targets

Value Creation26
Actual 2023

Net Sales

71.4B.

Operating Income

13.6B.

(% Sales)

19.1%

Target 2026
83.0B.
15.3B.
18.4%

EBITDA (% Sales)

2021-2023 Average

Target 2026

21 level More than 22

ROE

13 level More than 14

Shareholder return policy

Dividend payout ratio Total payout ratio

30 level

Approx. 60

Exchange rate USD/JPY:140 assumption EUR/JPY:152

Achieve growth in sales and profit while maintaining high profitability and efficiency. Targeting our first major milestone of 80 billion yen in sales and 15 billion yen in operating income.
Create a corporate value that significantly exceeds current financial value and business scale.

Net Sales (Billions of JPY) Operating Income (Billions of JPY)

83.0 Net Sales

73.6 71.9 59.9 60.5 61.8 63.3

71.4
63.4 57.5

48.4

15.3 Operating

13.6

income

11.0

6.1 4.6

7.0

7.4

5.4

4.2

3.6

2.4

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2026 (Target)

II.-3. Business Strategy of the “Value Creation 26” Functional Strategy
Business Strategy
Ensure continuous growth by allocating appropriate resources to each business
Advance the structure of the Photographic products business as a cash cow Expand scale in both “SurveillanceFA lenses”, and “Mobility & Healthcare Products, Others” business.
Target to increase sales composition ratio of “Surveillance & FA lenses”, and “Mobility and Healthcare, others” business by more than 15% each. (more than 40% sales growth from 2023 each) Adjust the sales composition ratio of the Photographic products business from 3/4 to 2/3.

Functional Strategy

Evolution of each function to support growth in existing business growth and new business creation

ProductionProcurement

MarketingSales

R&DNew Business Creation

Reinforce the global tri-pilar production system by starting the 2nd plant in Vietnam.
Increase the resilience of the supply chain, and enhance allocation flexibility
Promote automationlabor saving manpower reduction
Re-emphasize independent profitability and establish competitive advantage.

Recover sales in US & European markets.
Incorporate domestic demand in the Chinese market.
Capture demand in emerging markets.
Enhance digital marketing
Strengthen the ability to identify the needs on a global basis.

Advance fundamental optics and elemental technologies.
Improve productivity in product design and development
Enhance the discovery of the seeds/connection of needs.
Reinforce the function for new business creation
Accelerate open innovation design

II.-3. Business Strategy of the “Value Creation 26” Photographic Products

Inspire and enrich people’s lives

Photographic Products

Improve the high-profit structure as core business

2023

2026

Accelerate the development of own-brand product
Current5 models/per year New Medium-Term67 models/per year

Net Sales Own-brand OEM

¥53.0B. ¥32.8B. ¥20.2B.

¥56.0B.
¥37.0B. ¥19.0B.

Continuously adapts to new formats

Operating Income

¥14.0B.

¥15.2B.

Improving own-brand share · Recover sales in the US and Europe

(% Sales)

26.4%

Net SalesBillions of JPY Operating Income ratio

More than 27%

· Expand continuously in Chinese and Asian markets.
· Explore developing marketsLatin America, Middle East, Africa Market Share by revenue5
New Medium-Term78
Strengthen the relationship with OEM business partners

26.4% 53.0
2023

More than 27%
56.0
2026

II.-3. Business Strategy of the “Value Creation 26” Surveillance & FA Lenses

Create a secure and safe society

Surveillance & FA Lenses
Re-transform into a growth business, targeting for more than 10% operating income on net sales
Shift to dual strategy
Acquire more orders on volume zone products, in addition to high-value-added products.
Develop customers in the FA market and other new business fields
Expand FA lens’s lineup, Increase sales of SWIR and Zoom, etc.
Expand the camera module’s lineup

2023

2026

Net Sales

¥9.8B.

¥14.5B.

Severance lenses

¥5.9B.

¥7.4B.

FA lenes, Others

¥1.6B.

¥3.6B.

Camera module

¥0.8B.

¥3.5B.

TV conference lenses

¥1.5B.

–

Operating Income

¥0.7B.

¥1.6B.

(% Sales)

7.3% More than 11%

Net SalesBillions of JPY Operating Income ratio

More than 11%

Achieve 4Khigh magnificationminiaturization

7.3%

Expand sales in both OEM and own-brand

Select & review the business structure

9.8

14.5

Strengthen the developmentproductionsales structure in China

2023

2026

II.-3. Business Strategy of the “Value Creation 26”
Mobility & Healthcare Products, Others
Healthy and secure lifestyle

Mobility & Healthcare Products, Others

Further growth in automotive and medical business

& accelerate creation of new business

Net Sales

Focus on the sales of automotive lenses for sensing applications with the expansion of ADAS
Establish a next-generation cost structure for cost competition

Automotive lens
Healthcare components
DSC, VC, Drone, Others

Establish technologies for High pixels, durability, high heat Operating Income

resistance, and reliability assurance

(% Sales)

2023 ¥8.6B. ¥7.1B. ¥0.4B.

2026
¥12.5B.
¥10.2B.
¥1.4B.

¥1.1B.

¥0.9B.

¥1.5B.

¥1.7B.

17.3% More than 13%

Reform order acquisition activities, and start early
engagement from the upstream planning stage
Grow the automotive business to a 10-billion-yen sales scale

Net SalesBillions of JPY Operating Income ratio
17.3%

More than 13%

Further step up the rigid endoscope business

Full-scale entry into surgical microscopes and life sciences

8.6

Expand the medical business to 1-billion-yen sales scaletarget 3-billion-yen sales scale in 2030

Planned to increase operating income whereas the

2023

operating income on net sales decreased due to advance

investment to create new business

12.5
2026

II.-4. Financial Strategy of the “Value Creation 26” Basic policy

Building effective management while ensuring stability

Appropriate Capital Structure
Sustain an ROE of appx.14% Secure capital at twice of the cost
Utilize available funds while ensuring financial safety, achieving efficient management
Gradually reduce the equity ratio to be around 70% Aim for a liquidity reserve of approx. month’s
worth of monthly turnover

Enhanced Shareholder Return
Stable shareholder returns & flexible repurchase of treasury stock Aiming for total return ratio of 60%
Set a minimum annual dividend of 100 yen Target dividend payout ratio of approx. 40
Aim for a total return ratio of approx. 60% Conduct flexible repurchase of treasury stock

II.-4. Financial Strategy of the “Value Creation 26” Aimed Capital Structure

Over 80%

Optimal Capital Structure

Aimed Capital Structure

To the 70% level

Targeting to
Approx.75%

Over 5 mos.

About 3 mos.

Keep on
About 3 mos. of
monthly revenue

2023

2024

2025

Cash on Hand

2026 Equity Ratio

Shareholder Return
20242026 Flexible Share Repurchases
Target of total Return Ratio: approx. 60%

33.0%
82 57 25 2021

30.0%

32.9% 170

Increase Dividend Payout Ratio
40.9% to approx.
40%
210

120
135 90

30

35

2022

2023

Interm Devidend

Year-End Devidend

Devidend Payout ratio

160
50 2024

II.-4. Financial Strategy of the “Value Creation 26” Cash Allocation

Billons of JPY Yr. 20242026 Cumulated

12.0
Cash on Hand

D/E Ratio Approx. 0.1times

2.5 Debt

Ongoing cash generation with
the growth of businesses

60.0

Sales C/F
Pre-deduction of R&D Exp.

Cash In

Yr. 20242026 Cumulated
20.0
R&D Inv.

R&D Inv.

Yr. 20212023 Cumulated

Yr. 20242026 Cumulated

Approx.¥16.6B. Approx.¥20.0B.(Vs. previous medium-term1.2times

Fundamental Tech Development Elemental Tech Development New Tech Development

¥12.0B. ¥5.0B. ¥3.0B.

16.5
Facility Inv.
18.0
Strategic Inv.

Facility Inv.
Investment Plan

Approx.¥10.5B. Approx. ¥16.5B.(Vs. previous medium-term1.6times

Core/Upgrade Investment Investment for growth and new business Investment in New Plant System Related Investment

¥10.0B. ¥2.0B. ¥3.0B. ¥1.5B.

Strategic

–

Inv.

M&A etc.

Approx.¥18.0B
M&Aincluding alliance Open InnovationVC etc.

¥15.0B. ¥3.0B.

20.0
Shareholder Returns
Cash Out

Dividends Shareholder Stable
Returns Dividends

Target of DPR Maintain over
30%
Stable dividends

Repurchase of shares

Target of DPR Approx.40%
Increase DPR target
Minimum Annual Dividend 100yen
Total Payout Ratio Approx. 60%
Allowance for repurchasing shares

¥13.5B. ¥6.5B.

II.-4. Financial Strategy of the “Value Creation 26”
Strategic Investmentwith an eye towered the 2030s and next 100 years

Accelerate expansion of business domain by leveraging tech/ Early commercialization of the new business by “Technology Strategy”

Open Innovation Upfront Investment with an eye towered the 2030s and next 100 years

Business expansion aimed at contributing to earnings in the next medium-term and the 2030s
New business creation through M&A

Strengthen the investment process

Industry-academia-government collaboration
Collaboration and co-creation with companies and research institutions in different fields to generate new technologies
Collaboration with VC VC investmentsstarting from 2024
· Obtaining cutting-edge technology, information, and business models
· Investment assessment, internal incentive/system deployment
The long-term goal includes establishing Corporate Venture Capital (CVC) and expanding internal innovation systems.

SurveillanceFA
FA, New field: Investment for business expansion Customer acquisition /Lineup expansion /Partner alliance /Cost adaptability acquisition
Mobility & Healthcare Products, Others
MedialHealthcare: Investment for business expansion Technology Theme: Investment for commercialization

Assess investments from the perspective of validity, financial soundness, etc.
Investment decisions based on IRR and hurdle rate settings, etc.
Visualize the capital costs and profitability

Our Technology Strategy

Achieving a fulfilling society across a wide range of fields
legend

Section Tamron is considering entering in the future

Agricultural sector Promoting a technology Strategy Logistics sector

Section in which Tamron is currently active

Shifting from taking Monitoring of livestock and crops, dispersal of pesticides

Infrastructure sector

images to measuring in each industry

Wearable devices, unattended deliveries
Robotics sector

Surveying, building inspections, equipment inspections

Spatial light communications

Security sector

Home electronics sector
Digital cameras

Smart homes, service robots
Automotive sector

sector
6G, space-based communications

Urban surveillance, ITS(traffic monitoring), facial authentication
Infrared technologies

ADAS/ autonomous driving technologies
High-precision sensing technologies

Nursing/ healthcare sector
VR, wearable devices

Industrial sector
FA cameras, AI, image processing

Modularization technologies
High sensitivity technologies

Optical technologies

Technologies reducing size and weight
Coating technologies

Medical sector
Hard endoscopes, 3D endoscopes

High durability technologies
High durability technologies

Production Mechanical technologies technologies

High-precision evaluation technologies
Visible light technologies

Contributing to solving social issuers Our focus area
Development of optics for satellite implementation Optics for free space optical
communication

Goal Medical field, Nursing care/Health care Goal Automotive field, optical communication field Goal 11Infrastructure field Goal 13Agricultural field/ environmental analysis
(measurement)
Goal 16Security field/ AI

Examples of technical themes

Hyper-wide-angle fundus camera allowing wide field
fundus photography

Optical Technology for HighPower Laser
Development of optics for satellite implementation
Optical technology for star trackers

Infrared camera technology with Fresnel lens

II.-5. Management with a focus on capital costs and Stock prices
Status of action

By promoting management with awareness of capital costs, aimed to improve and maximize corporate value with achieving ROE over 14%, which is double of the cost of shareholder’s equityapprox.7%

2020

2023

Vison of Value Creation26

ROE 3.9%

Cost of Shareholder’s Equity
Approx. 7%

ROE
16.5%

Cost of Shareholder’s Equity
Approx. 7%

Ensure an ROE level that is double the shareholder capital cost, leading to continuous
improvement in corporate value.

ROIC 5.2%

WACC Approx. 7%

ROIC

WACC

13.1%

Approx. 7%

PBR: over 1.5 times Market Cap: over 100 billion yen

11. Strengthen investments for growth Facility inv.: 1.6x previous MTP R&D inv. : 1.2x previous MTP Strategic inv.: NEW
22. Enhance shareholder returns Raise the target of the dividend payout ratio Stable dividends with an annual minimum target of 100 yen Establish a new framework for repurchase of treasury stock Target for a total payout ratio of 60% around
33. Increase support for sustainability Advance the evolution of environmental vision Improve human capital management Promote human rights DD structure

44. Improve governance structure Transition to a company with audit & supervisory committee Secure the ratio of outside directors to a majority Strengthen supervisory function and internal control system Accelerate decision-making progress
5. Reinforce business portfolio Maintain the profitability of core business Expand the scale of growth/development businesses Early creation/growth of new businesses
66. Activate IR strategies Expand IR for individual investors Enhance presentation materials and integrated reports Improve the stock liquidity and expand investor base

II.-5. Management with a focus on capital costs and Stock prices
Stock Initiatives

Repurchase of Shares of Common Stock
The purpose is to enhance shareholder returns, while improving capital efficiency and ensuring a flexible capital policy

(1) Type of stock to be repurchased

Common Stock

(2) Number of shares to be repurchased

Up to 400,000 shares.
(Equivalent to 1.89% of outstanding shares, excluding treasury stock)

(3) Total repurchase amount

Up to 2 billion yen

(4) Repurchase period

From February 9, 2024 to March 31, 2024

(5) Method of repurchases

Market trading transactions on Tokyo Stock Exchange

Planned to cancel all the treasury stock repurchased as described above

Stock Split

The purpose is to improve the liquidity of the Company’s stock and expand the investor base by reducing the stock price per investment unit.

(1) Stok Split Method
(2) Schedule of the stock split

Public notice of record date
Record date
Effective date

Each share of common stock owned by shareholders recorded in the closing register of
shareholders on the record date of June 30, 2024 will be split into 2 share per share.
June 14, 2024 (scheduled)
June 30, 2024 July 1, 2024

II.-6. ESG/Sustainability Strategy

Environment
Reduce environmental burden through carbon neutral, in-house products designing and services
Promote and drive the evolution of the 2050 environmental vision
Reduce greenhouse gas emission · Scope1,2
– 18% reductionvs Yr.2015
in 203030 reduction
in 2050Zero emission
· Scope3 – Set Measurement method and reduction targets reduction targets
Improve contribution to resourcerecycling-society · Evolve towards a circular economy
Encourage initiatives for a society in harmony with nature · Strengthen conservation of biodiversity and sustainable utilization
Refine CDP evaluation

Social
Promote human capital management,
DE&I, and job satisfaction
Promote human capital management
Advance DE&I
· Female managerial ratio: over 12 · Career recruitment ratio: over 60 · Male parental leave adapt ratio: over 80
· Broaden human resources programs recruitment, development, evaluation etc.
Enrich human capital investments · Double education and training expenses · Refresh HR system and expand functions · Reinforce the education of engineers Increase R&G expenses
Refine human rights DD system · Implement SAQ, refine risk analysis, and make improvement
Promote health management
Expand engagement activities

Governance
Reform the Corporate Governance
Structure
Strengthen supervision, speed up decision-making
Transition to a Company with an Audit & Supervisory Committee · Strengthen supervisory functions, expedite decision-making
Increase the ratio of outside directors · Secure the ratio of outside directors to a majority
Refine the assessment of the effectiveness of the Board of Directors · Implementation with third-party involved · Strengthen supervision for each committee
Improve Board Advisory Committee · Enhance the transparency
Enhance executive functions · Promote authority delegation
Expand the internal control system
Foster a better company culture

II.-6. ESG/Sustainability Strategy Environmental Vision 2050
To realize a spiritual-rich society where everyone can live fulfilling lives

“Environmental Vision 2050”
Mission

Fulfilling Lives

Vision for society

Decarbonized society

Recycling-oriented society

Society in harmony with nature

2050 Target 2030 Target

Zero CO2 emissions
CO2 emission reduced by 30%
vs. 2015

· Waste reduction · Marine plastic reduction · Proper water management

· Reduce hazardous chemicals · Conserve biodiversity

Goal Setting and Activities

For the realization of a decarbonization
Conducting various initiatives including energy-saving, in-house solar power generation, renewing energy, and purchasing renewal energy.

2023 Target
(vs 2015)
9 reduction

Result (vs 2015)
12
reduction

Toward the reduction of waste plastic
· Manufacturing rear caps using 100% recycled materials from typically discarded runner stock.
· Considering the use of recycled plastic materials
Plan to use in several models from 2024

Efforts for biodiversity
Continuously supporting natural restoration activities in the Shibakawa First Adjustment Pond and surrounding areas in collaboration
with local citizen groups

Solar power generation system
ChinaXiangshan Plant
21 Copyright © Tamron Co., Ltd. All rights reserved.

Minuma rice field area

II.-6. ESG/Sustainability Strategy
Promote human capital management
Human Resources Strategy Pasic Policy
The key to realize Tamron’s vision and management strategies is the human resource strategy aligned with the management strategies. For this purpose, we will accelerate the priority on revitalizing individuals and organizations, developing systems and environments that enable individuals and organizations to maximize their potential.
To adapt to the changing business environments in line with the alternations in business structure and the progress of digitalization, we will upgrade the knowledge and skills of all employees, acquiring and strengthening key jobs and key skills in focused areas, and flexibly deploying personnel according to business environments.
Tamron’s human resource strategy consists of two elements: “revitalization of individuals and organizations” and “improvement of working environment”. For each of the elements, we are steadily working to realize the strategy by incorporating the human resource strategy themes that we have positioned as important based on our management strategy, setting targets, planning, and implementing measures.

Realize management strategy Realize Tamron’s vision

Human Resources Strategy

Revitalization of individuals and organizations

Improvement of working environment

Human resources acquisition

Human resources development

DEI promotion

Flexible working styles

Human resources utilization

Evaluation & assessment

Health management

Engagement

II.-6. ESG/Sustainability Strategy Improve Governance
Restore stakeholder’s trust by thoroughly implementing measures to prevent a recurrence, along with the overall improvement of the corporate governance system, including the transition to a company with an audit & supervisory committee.
Establish a Governance Review Committee, to continuously monitor to ensure the proper implementation of preventive measures, and to study and of preventive measures will be implement improvements in other governance overall.
Planned to regularly disclose the progress on recurrence prevention measures.

Governance Review Committee New
GoalRole
Consider a framework to improve the corporate governance system to strengthen the supervisory of the Board of Directors
Create an implementation plan for preventive measures based on recommendations from the special investigation committee.
Manage the progress of preventive measures overall based on the established plan.
Develop rules and implement operations to prevent recurrence.

Constructure

Chairperson · President & CEO

Members

· DirectorsAuditors · Managers to promote recurrence preventive
measures.
Administrative Management Unit, Corporate Strategy Unit, Internal Audit & Supervision Board,
Executive Assistant Section

Preventive Measures
1 Review the entertainment expenses of officers/Establish new rules for internal dining expenditure. Set upper limits for entertainment expenses for officers Introduce new regulations for internal dining expenditure, ensuring awareness in the company.
2 Restrain and enhance audits toward officer-related expenses Establish a check flow within the internal control department for officer expenses’ settlement. Grant certain directives and approval authority to the audit committee over the internal audit department, including opinions on the audit plan. Expand internal audit regulations, increase the frequency of internal audits, and review audit items
3 Monitor executive-related expenses by the Board of Directors (BOD) Detailed departmental budget information will be required for the presentation of the budget proposals to BOD. Distribute a list of actual executive office entertainment expenses to BOD meetings.
4 Introduce stricter measures to nominate and operate the Nomination Committee
Stricter adherence to the guidelines for nomination procedures of the committee officers Improving the operation of the Nomination Committee (enhancing document provision,
increasing meeting frequency, etc.).
5 Increase the awareness of all employees, conduct training for officers by external experts, and reinforce training for all staff.
Conduct training for officers by external experts Strengthen the training by the compliance committee for all staff members to promote the
understanding of the internal reporting system. Visualize organizational culture through surveys for all employees and cultivate a positive
corporate culture. Conduct training sessions and workshops for all employees with external directors and
external auditors as instructors.

II.-6. ESG/Sustainability Strategy

Progress on recurrence prevention measures

Recurrence prevention measures

Contents of the initiative

Progress

Review officer-related entertainment expenses, establish new rules for internal dining expenditures, and ensure awareness
1 · Sett upper limits for officer-related entertainment expenses
· Introduce new internal rule regarding meal expenses for employees only and Inform employees.

Revise job authority details (set upper limits for entertainment expenses). Specify self-approval prohibition Establish guidelines for approval, operation, and expenditure of entertainment
expenses.
Promote internal and departmental awareness through periodical education.

Strengthen checks and audits on officer-related expenses

Introduce a control flow in the accounting dept. (pre-check at the time of Concur

· Set a check flow by the internal control department for officer-

application).

related expense settlement.

Grant auditors the authority to give instructions and approval to the internal audit office.

· Grant auditors the authority to give instructions and approval to the Grant auditors the right to express opinions on the internal audit plans approved by CEO.

2

internal audit office and the right to express opinions on the audit plans.

Revise internal audit regulations (clarify that, in case there is a conflict between the instructions and approvals of the president of the internal audit and the audit committee,

· Expand internal audit regulations, increase the frequency of

the instructions and approvals of the audit committee take precedence).

internal audits and review the audit items.

Increase the frequency of internal audits for the executive assistant section (from

approximately once every 3 years to once every year).

Review internal audit items (including officer-related expenses)

24/2 done 24/2 done 24/2 done
23/12 done 24/1 done

Monitor officer-related expenses by the Board of Directors:

· Detailed departmental budget information is required to present

3

the budget proposal to the Board of Directors. Distribute the

result of officer-related entertainment expenses at Board of

Directors meetings.

Introduce stricter nomination procedures and Improve the operation

of the Nomination Committee

4

· Stricter nomination procedures by the Nomination Committee in line with governance guidelines

· Improving the operation of the Nomination Committee (enhancing

document provision, increasing meeting frequency, etc.).

Attach departmental expense details (including officer-related expenses) to Board of Directors resolutions for budget proposals
Distribute the list of officer-related entertainment expenses of the previous month at Board of Directors meetings.
Stricter nomination procedures by the Nomination Committee (confirm and document officer qualification item listed in governance.
Enhance the materials for consideration and nomination at the Board of Directors by the Nomination Committee.
Increase the frequency and quality of Nomination Committee meetings (from 1-2 times a year to 4 times a year)

23/12 done 24/1 done
24/1 done 24/2 done 24/1 held

Reform the mindset of all executives and employees through training Conduct special training by corporate lawyer for executives (twice a year).

by external experts

Conduct compliance training by the Compliance Committee etc. for all executives and

· Conduct special training for officers by external experts

staff (twice a year).

· Strengthen the training by the compliance committee for

Promote understanding of the whistle-blowing system through training for all employees

5

executives and employees and promote the understanding of the whistleblowing system.

and promote its use by the education. Understand the current state of corporate culture through engagement surveys for all

· Visualize the company culture through surveys for all employees

employees and foster a corporate culture that prevents fraud and scandals through

and foster it.

monitoring.

· Conduct training and seminars for all employees by outside

Conduct training and seminars for all employees by outside directors and outside auditors

directors and outside auditors as instructors.

(twice a year).

24/1 done

Overall improvement of the governance structure 6

Decision to transition to a company with an audit and supervisory committee. Decision to secure a majority of outside directors. Report of the committee activities to the board of directors. Improvement of the effectiveness evaluation of the Board of Directors (third-party
involvement in the effectiveness evaluation).

23/12 done 24/2 done 24/2 done

Note: After the transition to a company with an audit and supervisory committee scheduled for March 2024, matters that are scheduled to be 24 hanCdolepydribghyt c©oTrapmorroanteCoa.u, Ldtidto. Arsll rwigihlltsbreeshearvnedd.led by directors who are audit and supervisory committee members.

Completion (Target)
24/12 Continuous awareness education
24/3 24/3 24/3 24/6 To be
done on transition to a Company with Audit & Supervisory Committee
Held monthly
24/12 Held regularly
24/12 24/12 24/2 24/12 24/12 Held in1st half/ 2nd half
24/11

III. FY2023 Financial Results

-. FY2023 Summary

Environment

Economy
The economy is on a gradual recovery trend, despite continued uncertainty due to prolonged Russia’s invasion of Ukraine, military conflict between Israel and Palestine, China’s real estate development investment issues, energy problems, high global inflation, interest rate hikes in various countries, etc.
Significant depreciation of JPY (a decrease of ¥9 against USD and ¥14 against EUR compared to the previous year)
Material costs increase due to geopolitical risks as above and JPY depreciation.

Market
In the interchangeable lens camera and lens market, the quantity remains flat, but the total amount increases due to the strong performance of high-value- added products YoY.
In the surveillance sector, camera manufacturers have adjusted their inventory levels due to the easing of semiconductor shortages.

Company’s Results

Net sales showed a double-digit increase of 8 billion yen compared to the previous year, reaching 71.4 billion yen. Achieved double-digit growth in the section of photographic products, Mobility & Healthcare. However, there was about a 10% decrease in the surveillance and FA sector.
Gross profit margin remained at the previous year’s level as a result of controlling procurement costs and achieving lower product costs.
Although SG&A expenses increased by 10% due to reactionary increase (removing business travel restrictions due to increased exhibition participation and sales activities) from the cost-cutting phase of the COVID-19 pandemic and increase in personnel costs etc., the increase was absorbed by the gross profit increase from higher sales.

Operating income increased by 2.6 billion yen compared to the previous year (approximately 20% increase) marking a record-high profit for two consecutive fiscal years, exceeding 13 billion yen.

Double-digit increase in all profits (operating income, ordinary income, and net income)

The year-end dividend was increased by ¥45 compared to the previous year, with the annual dividend increasing by ¥50 compared to the previous year, to record high of ¥170.
26 Copyright © Tamron Co., Ltd. All rights reserved.

-. 2023 Full-Year Financial Results

Despite favorable foreign exchange effects, sales and income increased by double digits as the effects of customer production adjustments due to the difficulty of procuring electronic components because of semiconductor shortages, and the effects of raising component and materials costs were absorbed.
While sales and profits in the surveillance and FA business decreased due to inventory adjustments at customers, overall sales and profits increased due to the strong performance of the other two businesses.

Millions of JPY Net Sales

Actual 2022 63,445

Revised Forecast 2023
Announced on 4, Dec.
72,200

Actual 2023 71,426

VS. 2022

Inc./Dec.

%

7,980

12.6%

VS. Forecast 2023

Inc./Dec.

%

(773)

(1.1)%

Gross Profit

27,623

31,657

4,033

14.6%

–

(% Sales) Operating
Income (% Sales) Ordinary Income (% Sales)

43.5% 11,038 17.4% 11,496 18.1%

13,100 18.1% 13,500 18.7%

44.3% 13,607 19.1% 13,972 19.6%

0.8% 2,568 1.7% 2,475 1.5%

23.3%
21.5%
–

507 1.0% 472 0.9%

3.9%
3.5%
–

Net Income

8,350

9,990

10,812

2,461

29.5%

822

8.2%

(% Sales)

13.2%

13.8%

15.1%

1.9%

–

1.3%

–

USD/JPY

131.63

140.42

140.68

9.05

–

0.26

–

EUR/JPY

138.19

151.84

152.17

13.98

–

0.33

–

-. Factors Behind Variance in Operating Income
Net sales and operating income increased even without favorable foreign exchange effects (Two-digit-increase in operating income by about 17% YoY)

Millions of JPY

11,038

(770)

Impact of exchange rate on net sales: +3,170 million JPY

2,090

(380)

640

13,607
989

Actual 2022

RD Expenses SG&A Expenses (Expt. R&D)

FX rate Impact

Gross Profit from sales

Gross profit margin improve

Actual 2023

-. 2023 Full-Year Financial Results by Segment

Photographic Products

Millions of JPY Net Sales Operating Income (% Sales)

Actual 2022
45,519 11,158 24.5

Revised Forecast
2023
53,500
13,800 25.8

Actual 2023
53,032 14,008 26.4

VS. 2022

Inc./Dec.

%

7,513 2,849 1.9%

16.5% 25.5%
–

VS. 2022 FX Impact
2,270 460 –

VS. Forecast 2023

Inc./Dec.

%

(467) 208
0.6%

(0.9)% 1.5 –

Sales breakdown
Billions of JPY
Own-Brand OEM

Actual 2022
29.1 16.4

Revised Forecast
2023
33.6
19.9

Actual 2023
32.8 20.2

VS. 2022

Inc./Dec.

%

3.6

12.4%

3.9

23.7%

VS. Forecast 2023

Inc./Dec.

%

(0.8) 0.4

(2.5)% 1.8%

Market environment VS.2022

quantify

money

SLR cameras

(17)

(35)

Mirrorless cameras

19

11

Interchangeable lens cameras Total

1

4

Interchangeable lenses

(1)

7

Sales of our own brand interchangeable lenses increased even excluding favorable foreign exchange effects, driven by the launch of new mirrorless models and strong sales in Japan and Chania.
Although OEM sales decreased in 1st half compared to the strong sales in the previous year, full-year sales remained strong due to strong sales in 2nd half with positive impact of exchange rates.
Achieved record high operating income in the second consecutive year following 2022 with improving gross profit, continuing its trend of high profitability.

OEM
¥20.2 B.

¥16.4
Net Sales
Own-Brand
¥29.1 ¥32.8B.

Inner circle: 2022 Outer circle: 2023

Photographic Products-New Models
2021

Wide-angle Zoom

June 11-20mm F/2.8 RXD (B060)

2022

Jan.

Oct.

Jul.

Oct.

Standard Zoom

17-70mm F/2.8 VC RXD (B070)

June

28-75mm F/2.8 VXD G2 (A063)
Oct.

17-70mm F/2.8 VC RXD (B070) The 2nd model for FUJIFILM X-mount
Sep.

20-40mm F/2.8 VXD (A062)
Oct.

Telephoto Zoom

150-500mm F/5-6.7 VC VXD (A057)

Sep.

35-150mm F/2-2.8 VXD (A058)
Oct.

50-400mm F/4.5-6.3 VC VXD (A067)

150-500mm F/5-6.7 VC VXD (A057) The 3rd model for FUJIFILM X-mount

70-300mm F/4.5-6.3 RXD (A047)
The 1st model for Nikon Z-mount

All-in-one Zoom

For Sony E-mount

For FUJIFILM X-mount

18-300mm F/3.5-6.3 VC VXD (B061)

Developed our 1st model for Fujifilm X-mount and model for Sony E-mount at the same time.

2023
May

11-20mm F/2.8 RXD (B060) The 4th model for FUJIFILM X-mount
Oct.

17-50mm F/4 VXD (A068) For Sony E-mount

Sep,
35-150mm F/2-2.8 VXD (A058) The 2nd model for Nikon Z-mount

Oct. For Sony E-mount
70-180mm F/2.8 VC VXD G2 (A065)
The 3rd model for Nikon Z-mount 150-500mm F/5-6.7 VC VXD (A057)

Tamron has launched 5 new models a year

30
30 Copyright © Tamron Co., Ltd. All rights reserved.

Surveillance & FA Lenses

Millions of JPY Net Sales
Operating Income
(% Sales)

Actual 2022
11,236 1,399 12.5

Revised Forecast
2023
10,000
700 7.0

Actual 2023
9,786 716
7.3

VS. 2022

Inc./Dec.

%

(1,450) (682)
(5.2)%

(12.9)% (48.8)%
–

VS. 2022
FX Impact
710 290
–

VS. Forecast 2023

Inc./Dec.

%

(213) 16
0.3%

2.1% +2.3
–

Sales Breakdown
Billions of JPY Surveillance lenses FA lenses, etc. TV conference lenses Camera Module

Actual 2022
7.2 1.1 2.1 0.8

Revised Forecast
2023 6.2 1.5 1.4 0.9

Actual 2023
5.9 1.6 1.5 0.8

VS. 2022

Inc./Dec.

%

(1.3) 0.4
(0.6) (0.1)

(17.5)% 38.9%
(27.7)% (5.9)%

VS. Forecast 2023

Inc./Dec.

%

(0.3) 0.1 0.1
(0.1)

(4.6)% 3.9% 7.9%
(10.8)%

Although sales of FA lenses continued to increase significantly, sales of surveillance lenses and camera modules decreased due to the prolonged impact of inventory adjustment at customers.
The demand for TV conference lenses has continued to decline since 2020, and although the sales showed a recovery in 2022, it faced another decrease.
The sluggishness in the Chinese market and the reduced demand for new models due to inventory adjustments after the post-COVID19 situation have led to delays in recovering development costs, resulting in a decline in profits.

Camera modules
¥0.8 B.

TV conference lenses ¥0.8
¥1.5B. ¥2.1

Surveillance lenses

Net Sales

¥5.9 B.

FA lenses ¥1.1

¥1.6 B.

¥7.2

Inner circle: 2022 Outer circle: 2023

Mobility Healthcare, Others.

Millions of JPY Net Sales
Operating Income
(% Sales)

Actual 2022
6,689 1,061 15.9

Revised Forecast
2023 8,700
1,400 16.1

Actual 2023
8,607 1,492 17.3

VS. 2022

Inc./Dec.

%

1,917 430
1.4%

28.7% 40.6%
–

VS. 2022
FX Impact 190
(110) –

VS. Forecast 2023

Inc./Dec.

%

(92) 92
1.2%

(1.1)% 6.6 –

Sales Breakdown
Billions of JPY
Automotive lenses Healthcare components DSC/VC, Drone, etc.

Actual 2022
5.5
0.3
0.9

Revised Forecast
2023 7.2
0.4
1.1

Actual 2023
7.1
0.4
1.1

VS. 2022

Inc./Dec.

%

1.7

30.9%

0.1

38.5

0.1

12.8

VS. Forecast 2023

Inc./Dec.

%

(0.1)

(0.7)%

(0.0) (0.0)

(3.0) (2.7)

Sales of Automotive lenses increased by over 30% compared to the previous year due to strong demand for sensing applications.
Despite a downturn in DSC/VC and drones, sales of healthcare components have doubled due to lineup expansion.
While cultivating new fields, operating income showed a significant increase of 40% compared to the previous year due to profit margin improvement from strong sales of mainstay automotive lenses.

DSC/VC, Drone, etc.
¥1.1B.
Healthcare
¥0.4B. ¥0.9
¥0.3
Net Sales

Automotive lenses
¥7.1 B.

¥5.5

Inner circle: 2022 Outer circle: 2023

Summary of revenue and operating income by segment

Millions of JPY

Photographic Net Sales

Products

Operating Income

Surveillance & FA Lenses

Net Sales Operating Income

Mobility & Healthcare Products, Others
Total

Net Sales Operating Income Net Sales Operating Income

2023 1Q 9,615 2,666 3,215 288 1,690

YoY (%) 1.3
20.0 24.5 37.8 (3.1)

QoQ (%) (16.8) 13.3 31.0 25.1 (1.4)

284

13.5

1.2

14,521 3,239

5.1 26.4

(7.7) 13.1

2023 2Q 13,809 3,839 2,216 286 2,203

YoY (%) 4.3 8.3
(28.7) (39.4)
44.8

QoQ (%) 43.6 44.0
(31.1) (0.8) 30.3

385

123.8

35.3

18,230 4,511

2.0

25.5

7.1

39.3

2023 3Q 14,207 3,948 2,312 102 2,510

YoY (%) 26.6 30.0
(25.1) (78.8)
47.0

QoQ (%) 2.9 2.8 4.3
(64.1) 13.9

507

41.9

31.8

19,031

18.8

4.4

4,558

18.9

1.0

2023 4Q 15,399 3,553 2,041 37 2,202

YoY (%) 33.2 51.0
(16.8) (83.6)
28.5

QoQ (%) 8.4
(10.0) (11.7) (63.3) (12.3)

314

12.0

(37.9)

19,642 3,425

24.9 52.2

3.2 (7.5)

Net Sales
Billions of JPY
25.0

20.0

17.9

18.2 19.0 19.6

15.0 13.8

16.0 15.7 14.5

10.0

9.5

13.2 11.2 11.6

9.6

13.8 14.2 15.4

5.0

2.6

3.1

2.5

3.2

2.2

2.3

2.0

0.0

1.7

1.5

1.7

2.2

2.5

2.2

22/1Q 22/2Q 22/3Q 22/4Q 23/1Q 23/2Q 23/3Q 23/4Q

Operating Income/ Operating Income ratio

Billions of JPY

5.0

26.8% 27.1%

23.4% 4.0

20.9%

27.7% 27.8% 27.8% 23.1%
20.2%

3.0

14.4% 15.2% 3.5

20.4% 16.8% 17.5%

3.0 16.4%

3.8 12.9%

3.9

14.3%

2.0

15.7%

2.7

3.6

2.2 11.3%

2.4

1.0 8.1%

9.4% 9.0%

4.4%

0.0

0.2 0.3

0.5 0.2

0.5 0.4

0.2 0.3

0.3 0.3

0.3 0.4

0.1 1.9%

0.5

00..30

22/1Q 22/2Q 22/3Q 22/4Q 23/1Q 23/2Q 23/3Q 23/4Q

30% 25% 20% 15% 10% 5% 0%

IV. FY 2024 Financial Forecast

-. FY2024 Financial Forecast

Environment

Economy
The situation remains highly uncertain due to the prolonged Russia’s invasion of Ukraine, military conflict between Israel and Palestine, China’s real estate development investment issues, energy problems, high global inflation, interest rate hikes in various countries, etc.

Market
In the interchangeable lens camera and lens market, the quantity remains flat, but the total amount increases due to the strong performance of high-value- added products YoY.
In the surveillance sector, inventory adjustments at camera manufacturers are gradually calming down, and the automotive market is expected to continues high growth.

Company’s Forecast

Although there is an impact of higher material costs by rising prices of resources, aggressive investment, and higher R&D, plan to absorb these

costs and achieve an increase in sales and profit.

Aim to break the record high sales (¥73.6 billion in 2014).

Due to a change of policy on the distribution of profit, the annual dividend is planned to be ¥210 per share, a significant increase from ¥40

compared to the previous year.

Millions of JPY
Actual 2023

Forecast 2024

VS. 2023

Inc./Dec.

%

Net SalesMillions of JPY

Operating IncomeMillions of JPY

19.1%

18.9%

Net Sales

71,426

75,500

4,073

5.7%

Operating Income (% Sales)

13,607 19.1%

14,300 18.9%

692 (0.2)%

5.1% –

38,674

41,200

7,130

8,100

Ordinary Income

13,972

14,300

327

2.3%

(% Sales) Net
Income

19.6% 10,812

18.9% 10,730

(0.7)% (82)

(0.8)%

32,752

34,300

6,477

6,200

(% Sales)

15.1%

14.2%

(0.9)%

–

USD/JPY

140.68

140.00

(0.68)

–

EUR/JPY

152.17

152.00

(0.17)

–

2023 1st H

2024 2nd H

2023 1st H

2024

2nd H

(%)

Photographic Products

Millions of JPY Actual 2023

Net Sales

53,032

Operating Income

14,008

Forecast 2024 54,500
15,000

VS. 2023

Inc./Dec.

%

1,467

2.8%

991

7.1%

(% Sales)

26.4

27.5

1.1%

–

Although OEM sales slightly decline, plan to continue increase in Own-brand sales by expanding lineup and strengthening sales in overseas markets.

Accelerate the pace of new own-brand models launches

Scheduled to launch 6 new models in 2024, which will increase the new model sales ratio to 25%.

Despite higher material costs by rising prices of resources, plan to maintain a high profitability structure and achieve profits growth.

1st half, 2nd half Forecast

Net Sales

Millions of JPY

53,032

54,500

Operating Income
Millions of JPY
14,008

15,000

29,606

29,100

7,502

8,300

23,425

25,400

2023 1st Half

2024 2nd Half

6,506

6,700

2023 1st Half

2024 2nd Half

OEM
¥19.3 B.

¥20.2 Net Sales Own-brand
¥32.8 ¥35.2 B.

Inner circle: 2022 Outer circle: 2023

Surveillance & FA Lenses

Millions of JPY Actual 2023

Net Sales

9,786

Forecast 2024
11,600

VS. 2023

Inc./Dec.

%

1,813

18.5%

Camera Module
¥2.2 B.
¥0.8

Operating Income

716

1,000

283

39.6 TV conference lenses¥1.5

(% Sales)

7.3

8.6

1.3%

–

As prolonged inventory adjustments at camera manufacturers are

¥0.6 B.

Surveillance lenses

Net Sales

¥1.6

¥5.9

¥6.2 B.

gradually calming down and due to recovering from the stagnation phase in the Chinese market, sales of Surveillance lenses and Camara Module are expected to increase.

FA lenses, etc.
¥2.6 B.

While sales of TV conference lenses will decrease significantly, sales of FA lenses will continue to expand. New fields are also

Inner circle: 2022 Outer circle: 2023

expected to contribute to sales.

In addition, 2023 developed camera modules contributed to the sales. The overall sales and operating income of Surveillance & FA are expected to grow by double digits.

1st half, 2nd half Forecast

Net Sales

Millions of JPY
9,786

11,600

Operating Income
Millions of JPY
1,000

4,354

6,800

716 140

700

5,432

4,800

2023 1st Half

2024 2nd Half

575
2023 1st Half

300
2024 2nd Half

Mobility & Healthcare Products, Others DSC/VC, Drone, etc.

Millions of JPY Actual 2023

Net Sales

8,607

Operating Income

1,492

(% Sales)

17.3

Forecast 2024 9,400
1,100
11.7

VS. 2023

Inc./Dec.

%

792

9.2%

(392)

(26.3)

(5.6)%

–

¥0.7B.
Healthcare

¥0.7B.

¥1.1

¥0.4

Net Sales

The strong sales of automotive lenses are expected to grow

¥7.1

continually by double digits.

The steady sales growth of healthcare segment is expected to

increase by 80% compared to the previous year.

Plan to maintain operating income on net sales of the healthcare

segment by 10% by strengthening the development of elemental

technologies in new fields.

Automotive lenses
¥8.0 B.
Inner circle: 2022 Outer circle: 2023

1st half, 2nd half Forecast

Net Sales
Millions of JPY
8,607

9,400

4,713

5,300

3,894
2023 1st Half

4,100
2024 2nd Half

Operating Income
Millions of JPY
1,492
1,100 822
650

669

450

2023 1st Half

2024 2nd Half

Optical Technology for High-Power Laser
Transmission & processing technology development for laser
Technical Features Optical design technology that produces Gaussian, Top-Hat, Dual
(center/ring) beam. High quality beam performance suitable for high-precision laser applications
with use of special techniques (lens material/shape) Achieving a high-quality laser beam profile by correcting the eccentricity of
the laser beam and optical lenses.
Hyper-wide-angle fundus camera allowing wide field fundus
Joint development with Nara Institute of Science and Technology
Technical Features Tamron’s prototype lens with compact and hyper-wide-angle optimized for
fundus photography Various technologies illuminating stably near infrared through pupil to wide
fundus, which are newly developed by Nara Institute of Science and Technology Hyper-wide-angle (180°) fundus photography was achieved by combining the two technologies Wide field of eye fundus image can be acquired without mydriatic (eye drop)

Optical technology for star trackers
Design technology for straylight shield and radiation resistance
Technical Features Coating technology maintaining high optical performance even under radiation
environment Stray light simulation technology to achieve an effective baffle design Lens design technology for radiation resistance

Prototype of “Optics for Beam-Divergence Control”

Optics for free space optical communication
High-precision beam control technology
Technical Features Variable optical axis technology allowing to move the optical axis and to compensate for
vibration Beam divergence control technology with variable optics Evaluation and measurement technology to achieve laser beam quality

Infrared camera technology with Fresnel lens
Hybrid Fresnel lens (Design and Manufacturing) x Image correction technology
Note: This technology has been improved as Tamron’s original technology under the technical guidance of Professor Yan Jiwang of Faculty of Science and Technology, Keio University.
Technical Features Infrared camera technology fusing hybrid Fresnel lens with image correction technology Hybrid Fresnel lens (Molding technology for silicon material + high-density polyethylene) Realize various imaging field of views by optical design utilizing optical manufacturing
method

V. Reference Data

-. Financial Summary

Assets
Millions of JPY 100,000

80,000

75,556

60,000

29,948

40,000

11,128

20,000

12,998 1,230

20,250

0 22/12
Non-Current Assets Inventories Cash & Deposits

Inventories
20,000 15,000 10,000
5,000 0

2.5Mos.
12,998 22/12
Inventories

87,062
32,640
14,844 14,640
1,671 23,264
23/12 Other Current Assets Notes & Accounts Receivable

2.5Mos.

3.0

2.0

14,640

1.0

0.0 23/12 Turnover

LiabilitiesNet Assets
Millions of JPY 100,000

80,000 60,000

75,556
12,685 2,295

87,062
14,226 2,102

40,000 20,000

60,574

70,732

0

22/12

23/12

Net Assets Non-current Liabilities Current Liabilities

Liabilities with Interests

3,000

2.5%

2,000

1,000

1,908

0 22/12
Liabilities with Interests

3% 2.1%
2%

1,849

1%

0% 23/12 Loan-to-Interests

-. Capital Investment, Depreciation, and R&D Expenses

Capital InvestmentDepreciation

For Rationalization/Labor saving 3 For New bussiness/R&D 1
For Increase capacity 9

For New model development 20

For 2nd plant in Vietnam 12
Millions of JPY 6,000
5,000

For Maintenance/U
pdates 15
5,299

6,000

4,000 3,000

2,803 2,734

3,218

3,024

2,957

2,000

1,890

2,961

3,100

1,000

0 2020

2021

2022

2023

Capital Investment Depreciation

2024

R&D Expenses
Millions of JPY 10,000

12%

8,000 6,000 4,000

9.7% 4,687

8.7% 5,028

8.5% 5,398

8.6% 6,169

8.5% 6,400

10% 8%

6%

4%

2,000 2%

0 2020

2021

2022

2023

0% 2024

R&D Expenses

R&D Expenses (% Net Sales)

-. Cash Flow

Millions of JPY 12,000

10,000 8,000

9,232

10,027

6,000 4,000

5,367

4,881

2,000

0

(2,000) (4,000) (6,000)

(3,865)

(2,044)

(2,778) (5,145)

(8,000)

22/12

23/12

Operating CF Investing CF Free CF Financing CF

Operating Activities CF Investing Activities CF Free CF Financing Activities CF Cash & Cash Equivalents at the End of Period

22/12 9,232
(3,865) 5,367
(2,044)
29,948

23/12 10,027 (5,145) 4,881 (2,778)
32,640

-. Cash Dividends Outlook & Key Performance Indicators

Cash Dividends
JPY 300 56.3%

250
33.0% 200

150

Mar. 2020
100 Repurchase of
treasury stock (8.9 Bill.)

50

57

25

25 0
2020

25 2021

2023 Record-high dividend for 3 consecutive year

30.0%

32.9%

5 135
85

30 2022

35 2023

40.9% 160
50 2024

Interm Dividend Commemorative Dividend

Year-End Dividend Dividend Payout ratio

Shareholder Return Strategy
Target dividend payout ratio of approx. 40 (Set a minimum annual dividend of ¥100)
Aim for a total return ratio of approx. 60% Conduct flexible repurchase of treasury stock

60% 50% 40% 30% 20% 10% 0%

Key Performance Indicators
JPY 800

16.1%

600

12.0%

14.8%

17.2% 16.5%

20%

15.9% 14.8%

15%

400 5.9%
200

10.5%

10%

400.03

517.12

512.98 5%

3.9%

248.14

88.83
0 2020

2021

2022

2023

0% 2024

EPS ROENet Sales/Net Assets(Average for Fiscal Year) ROAOrdinary Income/Total Assets(Average for Fiscal Year)

V-5. Foreign exchange impact

Actual 2023
USD/JPY EUR/JPY Others Total

2022

131.63 138.19
–

2023

140.68 152.17
–

Impact (Millions of JPY)

Net Sales

Operating Income

2,160

(190)

780

650

230

180

3,170

640

Foreign exchange impact on previous year results

Forecast 2024
USD/JPY EUR/JPY

Exchange rate assumption 2024 140.00
152.00

Impact of 1 appreciation (Millions of JPY)

Net Sales

Operating Income

(320)

(40)

(70)

(60)

Disclaimer
1. The purpose of this material is to provide information on the actual results for FY2023 and future business strategies. It is not an offer or a solicitation of an offer to buy or sell securities.
2. This material and the information provided verbally in the company’s presentation are based on the data that are obtainable at the time of the presentation in compliance with the management policies and certain premises that are deemed reasonable by the company.
3. Please note that the actual results may sometimes differ from the forecasts contained herein due to various factors.
4. The company is not liable in any ways for any damages or losses incurred in connection with the use of any information or data contained herein or provided verbally in the company’s presentation.
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