FY2013 3Q Financial Results - Topconglobal.topcon.com/invest/library/financial/fr2013/pdf/...©2014...

©2014 Topcon Corporation

FY2013 3Q Financial Results

January 31, 2014 TOPCON CORPORATION

President & CEO Satoshi Hirano

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


CONTENTS

1


FY2013 Full Year Forecast

Ⅲ Appendix

Ⅰ FY2013 3Q Financial Results

Ⅱ

©2014 Topcon Corporation 2

Ⅰ. FY2013 3Q Financial Results Ⅰ- 1. FY2013 3Q Financial Results

Ⅰ- 2. Overview of Each Company


-4

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08/1-3Q 09/1-3Q 10/1-3Q 11/1-3Q 12/1-3Q 13/1-3Q-4

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08/1-3Q 09/1-3Q 10/1-3Q 11/1-3Q 12/1-3Q 13/1-3Q

Ordinary Income

Net Sales

Operating Income

Topic <Significantly improved sales and profit than FY2012 3Q>

1.7

5.7

ｘ3

3

0.3

6

ｘ17 66.8

79.3

66.8

79.3

Trends of 3Q Financial Results

Net Sales

Net Sales (billion yen)


Ordinary Income (billion yen)

Operating Income (billion yen)



<Continuous drastic profit growth>

[Consolidated] FY2012/1Q-3Q FY2013/1Q-3Q

Actual Actual YoY

Net Sales 66,874 79,322 12,448

Gross Profit (Gross Profit Ratio)

28,900 (43.2%)

37,635 (47.4%) 8,735

SGA 27,192 31,896 4,704

Operating Income (Operating Income Ratio)

1,707 (2.6%)

5,738 (7.2%) 4,031

Non-Operating Expenses -1,358 253 1,611

Ordinary Income 349 5,992 5,643

Extraordinary Income (Loss) -1,287 -609 678

Income (Loss) Before Income Taxes and Minority Interests -938 5,382 6,320

Net Income (Loss) -1,558 2,245 3,803

Exchange Rate (Average)

US$ ¥80.43 ¥99.23 ¥18.80

EUR ¥103.24 ¥132.13 ¥28.89

4

(unit: million yen)


[Consolidated] FY2012/1-3Q FY2013/1-3Q

Actual Actual YoY

Net Sales

Smart Infrastructure 19,868 23,422 3,554 Positioning 25,494 33,148 7,654 Eye Care 21,388 26,185 4,797 Others 7,328 4,526 -2,802 Elimination -7,205 -7,960 -755 Total 66,874 79,322 12,448

Operating Income

(Operating Income Ratio)

Smart Infrastructure 2,200 (11.1%)

2,920 (12.5%) 720

Positioning 300 (1.2%)

2,210 (6.7%) 1,910

Eye Care 752 (3.5%)

2,024 (7.7%) 1,272

Others -361 (- 4.9%)

-67 (-1.5%) 294

Goodwill Amortization -1,184 -1,350 -166

Total 1,707 (2.6%)

5,738 (7.2%) 4,031

5

(unit: million yen)

FY2013 3Q Financial Results by Company <All companies made significant growth in sales and profit>


¥8.1B

FY2012/1-3Q

FY2012/1-3Q

FY2012/1-3Q

FY2012/1-3Q FY2012/1-3Q

FY2012/1-3Q FY2013/1-3Q FY2013/1-3Q

FY2013/1-3Q FY2013/1-3Q FY2013/1-3Q

FY2013/1-3Q

・SIC: Chinese market shows signs of recovery

¥4.5B ¥9.6B

¥19.7B ¥17.6B ¥14.9B ¥13.3B ¥14.2B ¥14.2B

¥3.2B ¥7.5B ¥6.9B

112% 124% 139%

128% 141%

6

117%

Domestic and Overseas Sales (YoY) <Growth in all region>

Japan North America

Europe

China Asia/Oceania Others

・SIC: Sales grew by special reconstruction works

・POC: OEM business grew ・ECC grew

・POC: AG business grew significantly ・ECC: Grew significantly by OCT

・Grew in all companies ・SIC, ECC: Sales in Middle East significantly increased

・ SIC=Smart Infrastructure Company/ POC=Positioning Company/ ECC=Eye Care Company ・ Net sales of former Finetech business are excluded from figures above.


Ⅰ. FY2013 3Q Financial Results Ⅰ- 1. FY2013 3Q Financial Results

Ⅰ- 2. Overview of Each Company


FY2012/1-3Q Actual

FY2013/1-3Q Actual YoY (%)

Net Sales 19,868 23,422 +3,554 (118%) Operating Income (Operating Income Ratio)

2,200 (11.1%)

2,920 (12.5%) +720 (133%)

Negative factor Sluggish market recovery in Europe and exchange rate fluctuation in

emerging countries

Review of FY2013 3Q Financial Results Positive factors

Domestic sales increased due to fully activated procurement for special reconstruction works in Tohoku region and popularization of IT construction (YoY: 150%)

Chinese market shows signs of recovery (YoY: 150%) New product launch (MDTS*1) contributed to sales increase

8

(unit: million yen)

Overview of Each Company <Activated in special reconstruction works>

*1 MDTS = Motor driven total station

ー


FY2012/1-3Q Actual



300 (1.2%)

2,210 (6.7%) +1,910 (737%)

ー Negative factor European market struggling from slow recovery

Positive factors Construction business continues strong growth in OEM

(YoY:370％) OEM sales for IT Agriculture business remain solid (YoY:160％)

9

Review of FY2013 3Q Financial Results

Overview of Each Company <Continued growth of OEM business>

(unit: million yen)


FY2012/1-3Q Actual



752 (3.5%)

2,024 (7.7%) +1,272 (269%)

10

Review of FY2013 3Q Financial Results

Overview of Each Company <Strong 3D OCT-1 Maestro sales＞

Positive factor Strong 3D OCT-1 Maestro Sales throughout the world

(YoY:180％)

ー Negative factor Sluggish market in Europe and Chinese market deceleration

(unit: million yen)


Ⅱ. FY2013 Full Year Forecast

Ⅱ-1. FY2013 Full Year Forecast Ⅱ-2. Strategic Plans by Company Ⅱ-3. Summary


［Consolidated］

FY2012 FY2013

Full Year Full Year October 31, 2013

Actual Forecast YoY(%) Announcement

Net Sales 97,345 110,000 113% 110,000

Operating Income (Operating Income Ratio)

5,214 (5.4%)

11,500 (10.5%)

221% 11,500 (10.5%)

Ordinary Income 3,471 10,000 288% 10,000

Net Income 511 5,000 978% 5,000

ROE 1.3% 10.3% 10.3%

ROIC 3.8% 9.5% 9.5%

Dividends ¥6 ¥10 ¥10

Exchange Rate (Average)

US$ ¥83.23 ¥99.40 ¥94.30

EUR ¥107.57 ¥132.80 ¥124.74

12

Assumed exchange rate after January 2014 is ¥100/US$, ¥135/EUR

Full Year Forecast <More sales and profit than FY2012>

(unit: million yen)


［Consolidated］ FY2012 FY2013 Full Year Full Year October 31, 2013

Actual Forecast YoY(%) Announcement

Net Sales

Smart Infrastructure 29,839 33,000 111% 33,000

Positioning 37,824 43,000 114% 43,000

Eye Care 31,073 38,000 122% 38,000

Others 9,262 7,000 76% 7,000

Elimination -10,653 -11,000 -11,000

Total 97,345 110,000 113% 110,000

Operating Income

(Operating Income Ratio)

Smart Infrastructure 4,126 (13.8%)

4,800 (14.5%)

116% 4,800 (14.5%)

Positioning 1,413 (3.7%)

4,000 (9.3%)

283% 4,000 (9.3%)

Eye Care 1,563 (5.0%)

4,200 (11.1%)

269% 4,200 (11.1%)

Others -269 (-2.9%)

100 (1.4%)

―% 100 (1.4%)

Goodwill Amortization -1,618 -1,600 -1,600

Total 5,214 (5.4%)

11,500 (10.5%)

221% 11,500 (10.5%)

13

Business Forecast by Company <More sales and profit than FY2012 in all companies>

(unit: million yen)


Ⅱ. FY2013 Full Year Forecast

Ⅱ-1. FY2013 Full Year Forecast Ⅱ-2. Strategic Plans by Company

Ⅱ-3. Summary


0

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FY11/1-3Q FY12/1-3Q FY13/1-3Q



Strategic Plans by Company <Establish New Business>

1. Smart Infrastructure

15

＊ BIM = Building Information Modeling ＊ MDTS = Motor Driven Total Station

■

Expand lineup of total stations (MDTS*) that produce high profits

Launch new products for BIM* applications and enter into new business field

■

■ Serve for the special construction works in Tohoku region and new demands for 2020 Tokyo Olympics

2.9 2.2

Net Sales Operating Income


Enter into BIM market <Launch new strategic product> Concurrent Introduction in USA and Japan

16

Autodesk University USA Dec 2013

TOPCON INNOVATION Japan Dec 2013

Launch new strategic product for BIM market


New Product Launch <Enhance the new products for BIM>

Jan Jul Mar Oct Jan 2013 2014

Total Stations

3D Measurement

and others

DS100AC+/DX100AC+ Compact auto tracking TS※1

Cygnus Prism Basic TS※1

GTS-250/SET60 Basic TS※1

IS-310 Imaging Layout Station

DS/DX Compact auto aimingTS※1

ES/OS Basic TS※1

RL-200 1S/RL-200 2S Durable and accurate RL※2

※1 TS = Total Station

※2 RL = Rotating Laser ※3 MDTS = Motor Driven Total Station

17

MDTS ※3

Innovative BIM MDTS ※3

LN-100

NET/MS05/1AXⅡ Monitoring MDTS ※3

360VR 360°Movie Contents Newly Released

Newly Released


■ Promote sales of newly released MC products for Asian markets

2. Positioning

Further development of OEM business in both construction and agriculture fields

■

New sales company launch in China to fortify MC and AG sales ■

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FY11/1-3Q FY12/1-3Q FY13/1-3Q



2.2

0.3

Net Sales Operating Income

Strategic Plans by Company <Accelerate OEM and fortify Asia markets>


OEM Sales Trends in Construction Business （FY11 1-3Q vs FY13 1-3Q）

19

1-3Q 1-3Q 1-3Q1-3Q 1-3Q 1-3Q

FY2012 FY2013

OEM Sales Trends in Precision Ag business （FY11 1-3Q vs FY13 1-3Q）

FY2012 FY2013 FY2011 FY2011

840% 240%

Expansion of OEM Business <Continued growth>


New Product Launch <Enhance new product lineup for Asian Market>

GPS

MC & AG＊

Jan Apr Jul Mar Oct Jan 2013 2014

＊ MC＝Machine Control AG＝Agriculture

GR-5+ GNSS receiver with advanced tracking technology

AGI-4 The world’s smallest auto steering system

MAGNET Hybrid Positioning Surveying software for combined use of GPS and Total Station

MAGNET LAYOUT Field software specialized for layout

20

X-32, X-33, i-33 MC system for Asian markets

GX-30

MC-i3 TS-i3

GNSS receiver for Asian market


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FY11/1-3Q FY12/1-3Q FY13/1-3Q



2.0

0.7

Operation Income

3. Eye Care

■

■

■ Expand 3D OCT sales (YoY: 200％)

Offer wide variety of new common platform products (3 of 6 products planned in FY2013 have already been launched)

Expand sales growth in treatment products by launching new products, PASCAL (YoY: 125%)

Net Sales

Strategic Plans by Company <Expand 3D OCT>


1H 2H

3D OCT Maestro Sales Trend

FY2013

22

200% Maestro

OCT + Retinal Camera Multi-function

Mono-function Maestro Solo

OCT entry level model

Strengthen Maestro Line-up

(Common Platform Products)

Strong Maestro Sales! <Doubling the sales qty>

3D OCT-1 Maestro Operating with only one finger

Ultimate standard device (unit: Qty)


SP-1P (Launched)

23

TRK-2P (Launched)

3D OCT-1 Maestro Solo (Launched)

~FY2012 7 products

FY2013 6 products

FY2014~ 6 products

End of FY2013: 68% Complete

Launching New Common Platform Products <Contribute to sales and profit growth>

Six new products with common platform in FY2013!

Common Platform Products Progress


Examination /Diagnosis

Treatment

FDA Approval (forecast)

PASCAL Synthesis G7/Y7

TRC-NW300

TRC-NW8

PASCAL Synthesis

TRC-50DX

SP-1P

24

IMAGEnet5

3D OCT-1 Maestro Solo

TRK-2P

PASCAL Synthesis G4/Y4

SL-D701+DC-4

CV-5000PRO

Jan Apr Jul Mar Oct Jan 2014 2013

New Product Launch

<Expand new common platform products>

3D OCT-1 Maestro Ultimate standard device

Common Platform

Treatment device for less painful operation

Extend product lineup

Approved

Approved

Approved Approved Approved

Acquiring FDA approval one after another!


FY2013 Full Year Forecast Ⅱ.

Ⅱ-1. FY2013 Full Year Forecast Ⅱ-2. Strategic Plans by Company

Ⅱ-3. Summary


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FY11/1Q 2Q 3Q 4Q FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q

Summary <Sales and profits are on target>

26

2.4 0.2

3.4

0.7

3.4

1.5

25.5

20.7

30.6

24.0

28.7 26.5

Trends of Financial Results (Quarterly) Net Sales (billion yen)


Net Sales

Operating Income


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

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

Summary


Appendix Ⅲ.


(unit: models)

Company FY2013 FY2013-FY2015

Plan 1H Results

3Q Results

4Q Plan Total

Smart Infrastructure 4 1 5 10 21 Positioning 3 6 6 15 32

Eye Care 2 5 3 10 21 Total 9 12 14 35 74

New Products Launch Status (FY2013 Progress and Plan)

New Products Launch <Strategic products are planned>

29


5.9

7.7 6.1

10.1

6.7 9.1 7.6

0.1

1.3

0.7

2.0

0.4

1.5

1.0

0.0

0.5

1.0

1.5

2.0

0

5

10

15

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

Net SalesOperating Income

6.3 8.0 6.9

9.8

7.4

9.6

9.1

-0.3

0.8

0.2

0.8

0.02

1.2

0.8

-0.5

0.0

0.5

1.0

1.5

0

5

10

15

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


20.5 25.5

20.7

30.6

24 28.7

26.5

-0.8

2.4

0.2

3.4

0.7

3.4

1.5

-1.0

0.0

1.0

2.0

3.0

4.0

0

10

20

30

40

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


30

8.3 9.0 8.0

12.5 10.6

11.6 10.9

-0.08 0.6

-0.2

1.0 0.7

1.0

0.3

-0.5

0.0

0.5

1.0

1.5

0

5

10

15

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


Financial Results (Quarterly) 1. Consolidated 2. Smart Infrastructure

3. Positioning 4. Eye Care

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



49.5 49.3 46.1

51.2 52.7 57.3

0.5

1.5 1.5

3.7 4.1

7.4

0.0

2.0

4.0

6.0

8.0

0

10

20

30

40

50

60

70

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


15.6 16.9 14.4

16.6 17.0

21.0

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

25



13.5 14.6 13.7 16.1 15.8

17.2

0.6

1.8 1.4

2.6

1.9

2.9

0.0

1.0

2.0

3.0

4.0

0

5

10

15

20



17.1 17.0 17.4 20.4

22.3 20.7

0.5 0.5 0.9

1.8 2.2

0.0

1.0

2.0

3.0

0

5

10

15

20

25



31

Financial Results and Forecast (Semiannually) 1. Consolidated 2. Smart Infrastructure

3. Positioning 4. Eye Care



-0.02


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 January 31, 2014 at 16:30(UTC+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 3Q Financial Results - Topconglobal.topcon.com/invest/library/financial/fr2013/pdf/...©2014...

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