FY2015 3Q Financial Results -...
Transcript of FY2015 3Q Financial Results -...
©2016 Topcon Corporation 11
Ⅱ. FY2015 Full Year Plan Ⅱ-1. FY2015 Full Year Plan Ⅱ-2. Strategic Plans by Company
Ⅱ-3. Summary
©2016 Topcon Corporation
19 billion yen → 12.5 billion yen -6.5 billion yen (YoY 78%)
Conditions until 3Q
143 billion yen → 133 billion yen -10 billion yen (YoY 103%)
・Prolonged stagnation in the Agriculture Market ・New strategic products release delay ・Sales decrease of high value added products ・Market stagnation in Russia, Middle East, and South America
in response to changes in external environment
Measures in 4Q ・Sales increase by launching new strategic products (POC,SIC,ECC) ・Sales increase through IT Construction business in Japan (POC,SIC) ・Final phase towards FDA clearance (ECC) ・Sales increase through acquisition of ifa systems AG
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Margin decline from an unexpected slow growth in sales
Temporal cost increase
Speedy business management ・Completion of employment lay off ・Acceleration of FDA clearance ・Development acceleration of new strategic products ・Majority share acquisition of ifa systems AG
FY2015 Revised Plan Overview
Speedy business management by foreseeing changes
FY2015
Operating Income (Plan)
Sales (Plan)
Revised
©2016 Topcon Corporation
[Consolidated]
FY2014 FY2015
Full Year Full Year October 30, 2015
Actual Forecast Change YoY(%) Announcement
Net Sales 128,569 133,000 -10,000 103% 143,000
Operating Income (Operating Income Ratio)
16,041
(12.5%) 12,500
(9.4%) -6,500 78% 19,000
(13.3%)
Ordinary Income 14,880 11,000 -6,500 74% 17,500
Net Income*1 8,670 6,000 -4,800 69% 10,800
ROE 14.8% 10% 17%
ROIC 10.9% 8% 13%
Dividends (Dividend ratio)
¥16 (20%)
¥24 (43%)
¥24 (24%)
Exchange Rate*2
(Average)
US$ ¥110.03 ¥121.14 ¥120.81
EUR ¥138.68 ¥132.82 ¥132.48
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FY2015 Full Year Forecast (unit: million yen)
*1 According to change in Japanese Accounting Standards, the former Net Income is shown as "Profit (loss) attributable to owners of parent" on financial statements. *2 Assumed exchange rate after January 2016 is ¥120/US$, ¥130/EUR
©2016 Topcon Corporation
[Consolidated]
FY2014 FY2015
Full Year Full Year October 30, 2015
Actual Forecast Change YoY(%) Announcement
Net Sales
Positioning 58,672 64,000 -4,000 109% 68,000
Smart Infrastructure 33,909 34,000 -4,000 100% 38,000
Eye Care 41,240 44,000 -3,000 107% 47,000
Others 6,558 5,000 0 76% 5,000
Elimination -11,812 -14,000 1,000 -15,000
Total 128,569 133,000 -10,000 103% 143,000
Operating Income
(Operating Income Ratio)
Positioning 6,652 (11.3%)
4,500 (7.0%) -3,000 68% 7,500
(11.0%)
Smart Infrastructure
5,965 (17.6%)
4,500 (13.2%) -2,500 75% 7,000
(18.4%)
Eye Care 5,093 (12.3%)
5,500 (12.5%) -1,000 108% 6,500
(13.8%)
Others 163 (2.5%)
400 (8.0%) 0 245% 400
(8.0%) Goodwill Amortization -1,833 -2,400 -2,400
Total 16,041 (12.5%)
12,500 (9.4%) -6,500 78% 19,000
(13.3%)
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FY2015 Company Full Year Forecast (unit: million yen)
©2016 Topcon Corporation 15
Ⅱ. FY2015 Full Year Plan Ⅱ-1. FY2015 Full Year Plan Ⅱ-2. Strategic Plans by Company
Ⅱ-3. Summary
©2016 Topcon Corporation 16
■ IT Construction: Sales Expansion of i-Construction in the Japanese market and the steady Western market
IT Agriculture: Concentration on the aftermarket ■
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■ Introduction of new strategic products
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Strategic Plans by Company
1. Positioning Company
Focused Strategy
New Privately Owned Housing Units Started
U.S. Construction Investment Progress
Net Sales
Operating Income
Net Sales (billion yen)
Operating Income (billion yen)
* "i-Construction" is a registered trademark of National Institute for Land and Infrastructure Management, MLIT, JAPAN.
©2016 Topcon Corporation
FY11 FY12 FY13 FY14 FY15
IT Construction <Sales expansion in the aftermarket>
Active IT Construction Business in North America
IT Construction Sales Transition in North America
FY11 FY13 FY15 Plan
Steady Aftermarket
• Steady North American Construction Market
• Sales recovery in Europe • Penetration through
introduction of new strategic products
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FY12 FY14
©2016 Topcon Corporation
Solution Welding unnecessary Pole unnecessary Cable unnecessary
IT Construction <New strategic products>
Mastless MC System Traditional Dozer Machine Control System
Mast (Attached
after purchase)
Problem Trouble of welding the pole Breaking of the pole from vibration Damaging of the GPS cable
3D-MC MAX
Cables
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©2016 Topcon Corporation
Survey Design - Layout - Execution - Inspection
Current construction process 5 phases
Survey Design
IT Construction 3 phases
Construction revolution 2 phases
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Survey Design Layout Execution Inspection IT Construction ・ Reduces the process ・ Labor saving ・ Resolves lack of manpower
Shortening process
Layout - Execution - Inspection
IT Construction <A further advancement >
Further Advancement
Acquire 3D Model automated creation software technology
(Finland)
©2016 Topcon Corporation
・
Drop in crop prices provides severe low-cost competition
Farm producers are keen on improving the productivity
IT Agriculture <Outlook of the market>
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Reference: Ministry of Ag, Forestry & Fisheries of Japan* website
• Cost competitiveness will become imperative when the
TPP is concluded
• The lack of manpower due to the aging
• MAFF* encourages the Smart-Agriculture (left graph)
<The Ag Market in Japan>
The IT Ag market will certainly expand because of
the food problem lying behind
The demand for IT Ag System (Auto Steering) continues to grow
The IT Ag System (Auto Steering) will be an inevitable tool
㎡ 100M
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1996 2015 2030
The World Population
Farmland area per person
<The World Ag Market>
©2016 Topcon Corporation
IT Agriculture <Auto steering system of the tractor>
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(Automatically controlled wheel) ・Productivity growth ・Labor saving (No need for skilled workers)
・Fertilizer & pesticide reduction
The wheel with electric motor
The Console
GNSS Receiver
Auto Steering System New Tractor Vehicle
Add-on system (Aftermarket) The system attachable to all the existing tractors of any makers
Easy installation Low cost (about 1/10th of a new vehicle)
or
Regular Wheel
is... w/ Topcon OEM System Auto Steering System provided by Ag machinery makers
©2016 Topcon Corporation
World Ag Market 3400 thousand (Durable period: 8 years)
Market in Japan 370 thousand
(Durable period: 8 years)
装着 未装着 0.2%
Accelerate the spread of low-cost, easy-attachable system
The Solutions We Offer
System Use Ratio System Use Ratio
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Pricey initial investment & slowness in the penetration
Downward trend in capital spending (esp. new vehicles)
IT Agriculture <Penetration of the add-on system>
The World Ag Market The demand for IT Ag System (Auto Steering) continues to grow
Producers keen on improving the productivity
Problem
Cost competitiveness will become imperative
The Ag Market in Japan The IT Ag System (Auto Steering) will be an inevitable tool
Problem
W/out system
With system
W/out system
with system
©2016 Topcon Corporation
Topcon’s Revolutionary Technologies in One Receiver
Hi-end GPS Receiver
HiPer-HR
Advancement
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New Strategic Products <Hi-end GPS Receiver>
Small & lightweight! Plenty number of channels! Measurable even tilted!
©2016 Topcon Corporation
New Strategic Products <Drone business sales development>
Survey & Mapping Inspection & Monitoring
Sirius Falcon 8 High
maneuverability Resistance to
wind
Wide range Automatic
flight
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Remote sensing at hand
©2016 Topcon Corporation
GPS
MC & AG*
* MC=Machine Control AG=IT Agriculture
New Products <Revitalization of the Market with Revolutionary Products>
Apr Mar Jan 2015 2016
Jul Oct
GCX2 Revolutionary GNSS receiver
C-63 Compaction Management System w/ Temperature sensor
GX-55 New display for excavator system (integrated LED light bars)
NET-G5 448 Channels
QZSS・BeiDou Compatible
G5-A1 Multi Constellation Entry-level GNSS antenna
GNR5 448 Channels
QZSS・BeiDou Compatible
RD-M1 Compact portable road
scanning system
3D-MC MAX
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©2016 Topcon Corporation
2. Smart Infrastructure Company
Expansion of Total Station business with supplementary budget (Japan) ■
■ Sales growth of new Total Station(new strategic products)
Expansion of IT Construction Business along with “i-Construction” regulation ■
■ Sales increase in growing India’s market
Construction Demands forecast in the world (unit: trillion yen)
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*Prepared on the basis of Yano Research Institute Ltd. & Mizuho Research Institute Ltd. data
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Strategic Plans by Company
Focused Strategy
Net Sales (billion yen)
Operating Income (billion yen)
Net Sales
Operating Income
©2016 Topcon Corporation
Obligation to follow “i-Construction” (MLIT)
Improving construction productivity
Countermeasure for a critical labor shortage
FY2016 FY2020
20%
100%
MLIT’s independent placement of order for public works (foundation work)
Approx. 5~600 Billion yen
Source: Nikkei Inc. Nov 19, 2015
Acceleration of “i-Construction” <Expansion of IT Construction Business>
FY2016: 20%→FY2020: 100%
(Obligation)
Source :MLIT website
Source: MLIT website http://www.mlit.go.jp/common/001111976.pdf
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MLIT: Ministry of Land, Infrastructure, Transport and Tourism
*Design/ Planning *Survey *Construction *Inspection
©2016 Topcon Corporation
Design/ Planning
Obligation of i-Construction(Japan MLIT)
Utilization of Topcon 3D-MC System for i-Construction
2013 2014 2015
Planning to add the 2nd training center in West Japan
Launch Strategic new product
NEW!!
Survey
3D measurement (UAV)
Design & plan by 3D surveying data IT Construction Saving inspection
process
Launch Mast-less MC system
2H
1H
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Plan
■ Machine control sales(Japan)
MLIT: Ministry of Land, Infrastructure, Transport and Tourism
Construction Inspection
(sales)
* "i-Construction" is a registered trademark of National Institute for Land and Infrastructure Management, MLIT, JAPAN.
©2016 Topcon Corporation
Positive factors in the Q4 Supplementary budget(2015)
1.3 trillion yen (Jan 2016 enacted)
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Nominal construction investment transition
Steady construction investment
.....on the other hand,
Order delay in public works (Apr-Dec YoY basis -8%)
Construction market trend
Impact on domestic sales
The repair works of rivers and embankments (after disasters) will go into full-scale operation
in various areas
Expansion of Total Station business
(Trillion yen)
Source: Research Institute of Construction and Economy
Expansion of Total Station Business with Supplementary Budget(Japan)
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©2016 Topcon Corporation
2013 2014 2015
Launch New Strategic Products <Accelerate shifting to sales of high value added product >
2H
1H
Increase profitability with Total Stations of high market share
Common platform (110 models →10 models)
New Total Station Low-end
High-end
Middle class
World's Smallest/ World's Lightest
Common platform
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Plan
Sales of high value added Total Stations
(Q’ty)
World's Lightest
World's Smallest
World's Fastest
©2016 Topcon Corporation
0123456789
2013 2014 2015 2016 2017 2018
IndiaWorld Ave.
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2013-2014 … 2014-2015 … 2015-2016 …
道路 鉄道
Sales Increase in Growing India’s Market <Strengthen Sales Channels in India’s market>
Expand sales channel 2014 2015 2016
India Sales Plan Aggressive investment in growing India’s market
FY14-15 growth 200%
Growing infrastructure demand
Source: Ministry of Finance, Government of India
Continued High GDP growth rate
Source: IMF
India national budget(Road & Railway sector) Unit : INR Billion
(%)
2013-14 2014-15 2015-16 Plan
Surveying Market
New Channels
Road Railway
(INR M)
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©2016 Topcon Corporation
IP-S3
MS1005/NET1005
GPT-3500 TKS-400R
TP-L5
Image Master UAS
DS-200i
Long type GLS-2000 series Short type
THE-2016 SET25
ES-50 CX-50
Inspection systems of road crack
Apr Mar Jan 2015 2016
Jul Oct
New Products <Strengthen Total Station lineup>
3D Measurement
and others
Total Stations and others
New Total Station
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©2016 Topcon Corporation
Strategic Plans by Company 3. Eye Care Company
■
Sales growth by launching the new strategic product, OCT angiography software for DRI OCT Triton
■
■ Launch into Eye Care IT solution business with the synergy of Topcon and ifa’s technologies
Focused Strategies
Sales enhancement in the screening market
Net Sales Operating Income
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Net Sales (billion Yen)
Operating Income (billion Yen)
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■ Boost the OCT sales (Enter the final phase towards FDA clearance for Maestro)
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Source: United Nations Report
(Global)
©2016 Topcon Corporation
OCT Angiography Software for DRI OCT Triton <Released!>
1Q 2Q 3Q 4Q (Plan)
Visualize blood vessels!
Makes it possible to observe blood vessels without contrast dye! Reduces patient’s burden, also enables the early detection of various eye diseases!!
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Acceleration of OCT Triton sales!
Sales of DRI OCT Triton in FY2015
Fundus Image OCT Angiography Image
Released in Jan 2016 OCT Angiography for Triton
©2016 Topcon Corporation
Acquisition of Majority Shares of ifa Systems AG <Expand business domain>
Create the IT solution business for Eye Care
“Easy-to-operate full-auto” OCT & Fundus Camera
EMR(Electrical Medical record) /Telemedicine Systems
Exam/Diagnosis/Treatment domains
Diagnosis Examination Treatment
Hospital
Private eye clinic
Prognostic Domain
Prognostic management
Preventive domain
Screening
Medical check-up Hospital (Japan)
Optical shop
General practitioner
Visiting care
VisionVan
EMR for Ophthalmology
Existing business Expand business domain
Expand business domain
250 billion Yen*
500 billion Yen* *Market volume
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Remote medical care systems
Remote medical care systems
©2016 Topcon Corporation
Growth through the remote medical care systems and enhancing our profits by providing existing hardware (examination devices) as well as EMR.
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Current sales EMR sales More OCT sales in new fields
Continuous revenue flow by remote medical
care systems
High quality hardware
Transmit images
Examination at remote area
Existing business Improvement
Transmit images
Grade at reading center
Transmit images Transmit reports Billing
Information infrastructure
Global expansion
Acquisition of Majority Shares of ifa Systems AG <A new business model>
©2016 Topcon Corporation
Sales Enhancement in the Screening Market
Early-detection of eye diseases
3D OCT-1 Maestro
Introduce the OCT system to the medical check-up market (penetration ratio: approx.1%)
With the rapid aging of society, the penetration will be accelerated
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Expansion to the Medical check-up market
FY2014
Sales of TRC-NW300 & NW400
1H 2H 1H 2H 1H
FY2013
2H Plan
FY2015
TRC-NW400
FDA Approved
Full Auto
“Easy-To-Operate” Fundus Camera
Full Auto
“Easy-To-Operate” OCT
©2016 Topcon Corporation
Sales of 3D OCT-1 Maestro
1H 2H 1H 2H (Plan)
FY2015 FY2014
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Update Status of FDA Clearance Activities for 3D OCT-1 Maestro
Entering the final phase towards FDA clearance for Maestro by continued efforts through enhanced U.S. Regulatory team and collaboration with specialized law firm for FDA.
Only a little while until 3D OCT-1 Maestro launches into the World’s Biggest Health Care market!
©2016 Topcon Corporation
Examination / Diagnosis
FDA approval
New Products <Enrich product portfolio>
Apr Mar Jan 2015 2016
Jul Oct
Triton
IMAGEnet 6 Integral
SP-1P
ALADDIN (for domestic market) CT-800A
KR-800A IMAGENet6 Ver.up OCT Angiography (Extended “Smart Track” function)
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FDA Approved
©2016 Topcon Corporation 40
Ⅱ. FY2015 Full Year Plan Ⅱ-1. FY2015 Full Year Plan Ⅱ-2. Strategic Plans by Company
Ⅱ-3. Summary
©2016 Topcon Corporation 41
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FY2012 FY2013 FY2014 FY2015 Plan
16.0 128.6 133.0
12.5
116.7 97.3
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Summary
Trends of Financial Results Annually Operating Income (billion yen)
Net Sales (billion yen)
Net Sales Operating Income
©2016 Topcon Corporation
We will strive to increase the corporate value to reach the
target of ROE20%
With a strong focus on our growth strategy of mid-long term, we will respond to the latest business environment changes,
keenly and promptly.
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Summary <Speedy business management by foreseeing changes>