FY2013 1Q Financial Results -...

©2013 Topcon Corporation

July 31, 2013 TOPCON CORPORATION President & CEO Satoshi Hirano

In this presentation, “FY2013”refers to the year ending March 31, 2014.

FY2013 1Q Financial Results

©2013 Topcon Corporation 1

CONTENTS



Ⅳ Appendix

Ⅲ FY2013 Full Year Forecast

Ⅰ New Organization

Ⅱ


Ⅰ. New Organization


★内田憲男

New Organization <Shifting from “Reform※1” to “Enhancement※2”>

TOPCON

Eye Care Company

Smart Infrastructure Company

Positioning Company

3 in-house companies

FY2013 Forecast

3

Net Sales ¥33.0 billion Operating Income ¥4.8 billion

FY2013 Forecast FY2013 Forecast

★Yasufumi Fukuma ★Shigeyuki Sawaguchi

★Satoshi Hirano

★Raymond O'Connor



Monitoring Diagnostic evaluation of

deteriorated infrastructure/ Disaster prevention system

Survey/Construction

Infrastructure building in emerging countries

IT Construction Automation of construction work

IT Agriculture Applied IT agriculture

and increase of productivity

Ophthalmology Total solutions in response to increase of eye diseases

caused by aging society

※1 Reform = business restructuring ※2 Enhancement = business growth


Ⅱ. ・ FY2013 1Q Financial Results

・ Overview of Each Company



-2

-1

0

1

2

3

0

10

20

30

FY2008/1Q FY2009/1Q FY2010/1Q FY2011/1Q FY2012/1Q FY2013/1Q

Net Sales（billion yen）

Operating Income（billion yen）

Net Sales

Operating Income

Topic <1Q resulted in profitability, both sales and profits significantly improved>

Trends of 1Q Financial Results

Contributors

5

-0.9

0.7 +1.6

・New product launch

・Business restructuring

・Fluctuation in exchange


FY2013 1Q Financial Results <Our profitability significantly improved >

[Consolidated] FY2012/1Q FY2013/1Q

Actual Actual YoY

Net Sales 20,539 24,064 3,525 Gross Profit （Gross Profit Ratio）

8,274 （40.3%）

11,145 （46.3%） 2,871

SGA 9,169 10,437 1,268 Operating Income(Loss) （Operating Income Ratio）

-895 （-4.4%）

708 （2.9%） 1,603

Non-Operating Expenses -689 -54 635

Ordinary Income(Loss) -1,585 653 2,238 Extraordinary Income(Loss) -70 -104 -34 Income (Loss) Before Income Taxes and Minority Interests -1,655 549 2,204

Net Income -1,526 55 1,581

Exchange Rate （Average）

US$ ¥80.40 ¥97.94 ¥17.54

EUR ¥103.35 ¥127.35 ¥24.00

6

（unit: million yen）


FY2013 1Q Financial Results by Company <All Companies made significant improvements in profitability>

［Consolidated］ FY2012/1Q FY2013/1Q

Actual Actual YoY

Net Sales

Smart Infrastructure 5,950 6,759 809 Positioning 8,354 10,669 2,315 Eye Care 6,383 7,457 1,074 Others 2,341 1,574 -767 Elimination -2,490 -2,396 93 Total 20,539 24,064 3,525

Operating Income

（Operating Income Ratio）

Smart Infrastructure 160 （2.6%）

447 （6.6%） 287

Positioning -80 （-1.0%）

752 （7.0%） 832

Eye Care -370 （-5.8%）

21 （0.3%） 391

Others -218 （-9.3%）

-44 （-2.8%） 174

Goodwill Amortization -385 -468 -83

Total -895 （-4.4%）

708 （2.9%） 1,603

7



Domestic and Overseas Sales （YoY）〈New product launch contributed to the sales growth〉

FY2012/1Q

FY2012/1Q

FY2012/1Q FY2013/1Q FY2013/1Q

FY2013/1Q

- POC : OEM business grew significantly (160%)

- ECC : 3D OCT sold well (130%) - POC sales increased

- SIC sales in the Middle East increased (140%) - All companies improved net sales

122％ 138％

115％

8

North America

Europe

Others

¥2.3B

¥6.5B ¥5.5B ¥4.5B ¥4.7B

¥2.0B

Japan

FY2012/1Q FY2013/1Q

- SIC : Sales grew due to special reconstruction demand (120%)

¥4.1B ¥3.6B

112％

China

FY2012/1Q FY2012/1Q FY2013/1Q FY2013/1Q

- All Companies improved net sales - SIC: Products manufactured locally sold well (160%)

¥1.2B ¥2.6B ¥1.0B ¥2.1B

115％ 124％

・ SIC=Smart Infrastructure Company/ POC=Positioning Company/ ECC=Eye Care Company

Asia/Oceania

・ Net sales of former Finetech business are excluded from figures above


Ⅱ. ・ FY2013 1Q Financial Results

・ Overview of Each Company



ー Risk factor Sluggish market in in Europe

Positive factors Domestic sales increased due to expanding procurement in special

reconstruction works in Tohoku region and popularization of IT construction (YoY 120%)

Sales and profits increased due to the improvement of cost competitiveness by manufacturing TS*1 in China

(local procurement ratio is 98%) New product launch (MDTS*2) contributed to sales increase

Overview of Each Company

FY2012/1Q Actual

FY2013/1Q Actual YoY FY2013

Full Year Forecast

Net Sales 5,950 6,759 +809 33,000 Operating Income (Operating Income Ratio)

160 (2.7%)

447 (6.6%) +287

4,800 (14.5%)

Review of FY2013 1Q Financial Results

10


*1 TS= Total station *2 MDTS＝ Motor driven total station


FY2012/1Q Actual


Full Year Forecast

Net Sales 8,354 10,669 +2,315 43,000 Operating Income (Operating Income Ratio)

-80 (-1.0%)

752 (7.0%) +832

4,000 (9.3%)

ー Risk factor Sluggish market in Europe and China

Positive factors OEM business for construction fully advanced (YoY 160%) In IT Agriculture business, strong sales in OEM and new

products (YoY 140%)

11


Overview of Each Company （unit: million yen）


FY2012/1Q Actual


Full Year Forecast

Net Sales 6,383 7,457 +1,074 38,000 Operating Income (Operating Income Ratio)

-370 (-5.8%)

21 (0.3%) +391

4,200 (11.1%)

Positive factors 3D OCT-1 Maestro sold well all over the world Some products including retinal cameras acquired FDA

approval and sales in the U.S have begun to regain Profitability improved by launching common platform products

(which lowered COGS 25%)

ー Risk factor Sluggish market in Europe and China

12

Overview of Each Company




FY2013 Full Year Forecast Ⅲ.

Ⅲ-1. FY2013 Full Year Forecast Ⅲ-2. Strategic Plans for 2Q-4Q

Ⅲ-3. Summary


［Consolidated］

FY2012 FY2013

1H Full Year 1H Full Year April 26,2013

Actual Actual Forecast YoY(%) Forecast YoY(%) Announcement

Net Sales 46,121 97,345 52,000 113% 110,000 113% 110,000

Operating Income （Operating income Ratio）

1,505 （3.3%）

5,214 （5.4%）

3,500 （6.7%）

233% 11,500 （10.5%）

221% 11,500 （10.5%）

Ordinary Income 486 3,471 2,800 576% 10,000 288% 10,000

Net Income (Loss) -1,221 511 1,200 ―% 5,000 978% 5,000

ROE 1.3% 10.3% 10.3%

ROIC 3.8% 9.5% 9.5%

Dividends ¥2 ¥6 ¥5 ¥10 ¥10

Exchange Rate

（Average）

US$ ¥79.43 ¥83.23 ¥94.53 ¥92.44 ¥90

EUR ¥101.12 ¥107.57 ¥124.20 ¥122.26 ¥120

14


Assumed exchange rate after FY2013 2Q to 4Q is ¥90/US$, ¥120/EUR

Full Year Forecast


［Consolidated］ FY2012 FY2013

1H Full Year 1H Full Year April 26,2013

Actual Actual Forecast YoY(%) Forecast YoY(%) Announcement

Net Sales

Smart Infrastructure 13,734 29,839 15,000 109% 33,000 111% 33,000

Positioning 17,437 37,824 21,000 120% 43,000 114% 43,000

Eye Care 14,478 31,073 18,000 124% 38,000 122% 38,000

Others 5,728 9,262 3,000 52% 7,000 76% 7,000

Elimination -5,256 -10,653 -5,000 -11,000 -11,000

Total 46,121 97,345 52,000 113% 110,000 113% 110,000

Operating Income

（Operating Income Ratio）

Smart Infrastructure

1,472 （10.7%）

4,126 （8.8%）

1,600 （10.7%） 109% 4,800

（14.5%） 116% 4,800 （14.5%）

Positioning 538 （3.1%）

1,413 （3.7%）

1,500 （7.1%） 279% 4,000

（9.3%） 283% 4,000 （9.3%）

Eye Care 483 （3.3%）

1,563 （5.0%）

1,200 （6.7%） 248% 4,200

（11.1%） 269% 4,200 （11.1%）

Others -219 （-3.8%）

-269 （-2.9%）

0 （0%） ―% 100

（1.4%） ―% 100 （1.4%）

Goodwill Amortization -769 -1,618 -800 -1,600 -1,600

Total 1,505 （3.3%）

5,214 （5.4%）

3,500 （6.7%） 233% 11,500

（10.5%） 221% 11,500 （10.5%）

15

Business Forecast by Company （unit: million yen）



Ⅲ-1. FY2013 Full Year Forecast Ⅲ-2. Strategic Plans for 2Q-4Q Ⅲ-3. Summary


Strategic Plans for 2Q-4Q 1. Smart Infrastructure

■ Serve for growing needs of special reconstruction works in Tohoku region Develop new products such as BIM for construction and enter into new business field

■

■ Launch new products for European and U.S. markets

0.1 0.4

17


New Product Launch

18

Total Stations

3D Measurement and others

Jan Apr Jul Mar Oct Jan 2013 2014

DS/DX Compact and auto aimingTS※1

ES/OS Basic TS※1

RL-200 L1/RL-200 L2 Durable and accurate RL※2

※1 TS = Total Station

※2 RL = Rotating Laser

For the U.S. and European markets



For BIM market, Revolution in construction industry!


■ Increase sales in the U.S. market, currently in favorable trend

2. Positioning

Accelerate OEM business for both construction and agriculture equipment manufacturers

■

Launch strategic products for Asian market (such as affordable models of GPS and MC products)

■

0

0.7

19

Strategic Plans for 2Q-4Q

90

92

94

96

98

100

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec Jan

Feb

Mar

Apr

May

FY2010 FY2011 FY2012 FY2013

Dodge Construction Index

Trends of construction contracts in North America

120％

FY2010 FY2011 FY2012 FY2013


Expansion of OEM Business

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1QFY2011 FY2012 FY2013

280%

OEM Sales Trends (from FY2011 1Q to FY2013 1Q)

Construction Equipment

Agricultural Equipment

20


GPS

MC & AG※

※ MC＝Machine Control AG＝Agriculture

GR-5+ GNSS receiver with advanced tracking technology

AGI-4 The world’s smallest auto steering system

21

New Product Launch

Jan Apr Jul Mar Oct Jan 2013 2014

GNSS receiver for Asian market

MC system for Asian market


3. Eye Care

■ Maximize profitability by launching common platform products (lowered COGS 25%)

■ Increase sales of treatment products by launching new PASCAL (150%)

■ Expand 3D OCT sales all over the world ■ Acquire FDA approval sequentially and regain sales in the U.S.

-0.3 0.02

22

Strategic Plans for 2Q-4Q


3D OCT Sales Growth

23

1Q 2Q 3Q 4Q 1Q

3D OCT Global Sales Trends (unit: Q’ty)

3D OCT-1 Maestro

User friendly! Ultimate standard device = Auto focus/ Auto shoot OCT

FY2012 FY2013

170%

Even in European market was under economic downturn, 3D OCT sales for FY2013 1Q increased 30% compared with FY2012 1Q.

The best solution for the growing checkup markets ! Target Markets ・Optometrists ・Preventive and checkup

World’s First !

(One of the common platform products)


Examination/Diagnosis

Treatment

FDA Approval (forecast)

３D OCT Maestro Ultimate standard device

PASCAL Synthesis Treatment device for less painfull operation

TRC-NW300

TRC-NW8

PASCAL Synthesis

TRC-50DX

24

New Product Launch Jan Apr Jul Mar Oct Jan 2013 2014

Acquiring FDA approval one after another!

Common Platform

Common Platform

Common Platform Common Platform

Extend product lineup



Ⅲ-1. FY2013 Full Year Forecast Ⅲ-2. Strategic Plans for 2Q-4Q Ⅲ-3. Summary


-2

0

2

4

0

10

20

30

FY2011/1Q 2Q 3Q 4Q FY2012/1Q 2Q 3Q 4Q FY2013/1Q

Summary <Growth by new product launch and implementation of business reform>

Trends of Financial Results (Quarterly)

-0.9

0.7

26

Net Sales (billion yen) Operating Income (billion yen) Net Sales

Operating Income

+1.6


Summary

27

We will strive to increase the corporate value to reach the target of ROE20%

by the final year of “Mid-term Business Plan 2015.”


Ⅳ.

28

Appendix


5.9

7.7 6.1

10.1

6.7

0.1

1.3

0.7

2.0

0.4 0.0

0.5

1.0

1.5

2.0

0

5

10

15

FY12/1Q 2Q 3Q 4Q FY13/1Q

Net Sales Operating Income

6.3

8.0 6.9

9.8 7.4

-0.3

0.8

0.2

0.8

0.02

-0.5

0.0

0.5

1.0

0

5

10

FY12/1Q 2Q 3Q 4Q FY13/1Q


8.3 9.0 8.0

12.5

10.6

0.0

0.6

-0.2

1.0 0.7

-0.5

0.0

0.5

1.0

0

5

10

15

FY12/1Q 2Q 3Q 4Q FY13/1Q


20.5 25.5

20.7

30.6

24.0

-0.8

2.4

0.2

3.4

0.7

-1.0

0.0

1.0

2.0

3.0

4.0

0

10

20

30

40

FY12/1Q 2Q 3Q 4Q FY13/1Q


29

Financial Results (Quarterly) １．Consolidated

３．Positioning

２．Smart Infrastructure

４．Eye care


Operating Income（billion yen） Operating Income（billion yen） Net Sales（billion yen） Net Sales（billion yen）

Net Sales（billion yen） Operating Income（billion yen） Net Sales（billion yen）


49.5 49.3 46.1 51.2 52.0

58.0

0.5 1.5 1.5

3.7 3.5

8.0

0.0

2.0

4.0

6.0

8.0

0

35

70

FY11/1H FY11/2H FY12/1H FY12/2H FY13/1H FY13/2H


15.6 16.9 14.4

16.6 18.0 20.0

0.4

1.4

0.4

1.1 1.2

3.0

0.0

1.0

2.0

3.0

4.0

0

5

10

15

20



13.5 14.6 13.7 16.1

15.0 18.0

0.6

1.8 1.4

2.6

1.6

3.2

0.0

1.0

2.0

3.0

4.0

0

5

10

15

20



17.1 17.0 17.4 20.4 21.0 22.0

0.5

0.0

0.5

0.9

1.5

2.5

0.0

1.0

2.0

3.0

0

5

10

15

20

25



30

Financial Results and Forecast (Semiannually) １．Consolidated

３．Positioning

２．Smart Infrastructure

４．Eye care


Operating Income（billion yen） Operating Income（billion yen） Net Sales（billion yen） Net Sales（billion yen）

Net Sales（billion yen） Operating Income（billion yen） Net Sales（billion yen）


These materials contain forward-looking statements, including projections of future operating performance. Such statements are based on management’s best judgment, given the materials available to them at the time these statements are made. However, please be aware that actual performance may differ from projected figures owing to unexpected changes in the economic environment in which we operate, as well as to market fluctuations. The original disclosure in Japanese was released on July 31, 2013 at 16:30(GMT+9).

Inquiries: IR Affairs Corporate Communication Dept. TOPCON CORPORATION Tel: +81-3-3558-2532 E-mail: [email protected] URL: http: //global.topcon.com/invest/

Cautionary Note regarding Forward-Looking Statements

FY2013 1Q Financial Results -...

Documents

Transcript of FY2013 1Q Financial Results -...