FY2015 Financial Resultsglobal.topcon.com/invest/library/financial/fr2015/... · FY2015 . Financial...

FY2015 Financial Results In this presentation, “FY2015” refers to the fiscal year ended March 31, 2016.

April 28, 2016 TOPCON CORPORATION President & CEO Satoshi Hirano

©2016 Topcon Corporation 1

FY2015 Financial Results

FY2016 Full Year Plan

Ⅰ FY2015 Financial Results

Ⅱ

Appendix Ⅲ

CONTENTS


Ⅰ. FY2015 Financial Results


FY2015 Result

0.0

8.0

16.0

24.0

0.0

40.0

80.0

120.0

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

8.8 Billion yen

130.7Billion yen

・POC: Stagnation in IT Agriculture Oil price drop ・SIC: Quiet down of demands from earthquake disaster reconstruction (Japan)

ECC: Remained stable both in sales and profits

POC/SIC: Coped with the market changes, but the changing speed was faster than our expectations

An increase in sales and a decrease in profits on a consolidated basis Operating Income

Net Sales Net Sales

(billion yen) Operating Income (billion yen)

POC=Positioning Company, SIC=Smart Infrastructure Company, ECC=Eye Care Company


[Consolidated] FY2014 FY2015 January 29, 2016

Actual Actual YoY Announcement

Net Sales 128,569 130,735 2,166 102% 133,000

Gross Profit (Gross Profit Ratio)

66,269 (51.5%)

65,642 (50.2%) -627 99%

SGA 50,227 56,839 6,612 113%

Operating Income (Operating Income Ratio)

16,041 (12.5%)

8,803 (6.7%) -7,238 55% 12,500

(9.4%) Non-Operating Expenses -1,161 -1,437 -276 －

Ordinary Income 14,880 7,366 -7,514 50% 11,000

Extraordinary Income (Loss) -1,865 -58 1,807 － Income (Loss) Before Income Taxes and Minority Interests 13,014 7,307 -5,707 56%

Net Income (Loss) ＊ 8,670 4,197 -4,473 48% 6,000

ROE 14.8% 6.9% 10%

ROIC 10.9% 5.4% 8%

Dividends (JPY) ¥16 ¥24 ¥8 ¥24

FY2015 Financial Results (unit: million yen)

＊ According to change in Japanese Accounting Standards, the former Net Income is shown as "Profit (loss) attributable to owners of parent" on financial statements.


[Consolidated] FY2014 FY2015 January 29, 2016

Actual Actual YoY Announcement

Net Sales

Positioning 58,672 61,977 3,305 106% 64,000 Smart Infrastructure 33,909 32,989 -920 97% 34,000

Eye Care 41,240 43,834 2,594 106% 44,000 Others 6,558 4,997 -1,560 76% 5,000 Elimination -11,810 -13,063 -1,251 -14,000 Total 128,569 130,735 2,166 102% 133,000

Operating Income

(Operating Income Ratio)

Positioning 6,652 (11.3%)

2,385 (3.8%) -4,267 36% 4,500

(7.0%)

Smart Infrastructure

5,965 (17.6%)

3,909 (11.8%) -2,055 66% 4,500

(13.2%)

Eye Care 5,093 (12.3%)

4,850 (11.1%) -243 95% 5,500

(12.5%)

Others 163 (2.5%)

196 (3.9%) 32 120% 400

(8.0%)

Goodwill Amortization -1,832 -2,538 -705 - 2,400

Total 16,041 (12.5%)

8,803 (6.7%) -7,238 55% 12,500

(9.4%)

FY2015 Company Financial Results <Steady in Eye Care Company>

(unit: million yen)


9.5

FY2014

FY2014

FY2014

FY2014 FY2014

FY2014 FY2015 FY2015

FY2015 FY2015 FY2015

FY2015

6.8 14.3

33.9 36.4 25.0 27.5 32.0 31.2

6.4 12.4 12.6

91％ 114% 109%

115% 106% 75%

Domestic and Overseas Sales (YoY) <North America, Europe, China and Asia are steady>

Japan North

America Europe

China Asia/Oceania Others

(Billion yen) (Billion yen) (Billion yen)

(Billion yen) (Billion yen) (Billion yen)

・SIC: Order decline in public works

・POC: IT Construction continues strong growth

・POC: IT Construction continues strong growth ・ECC: Examination/Screening market continues strong growth

・SIC/ECC: Strong sales ・ECC: Sales increase by obtaining China SFDA (State Food and Drug Administration)

・POC/SIC: Market stagnation in Russia, Middle East, and South America ・ECC: Market stagnation in South America and Russia

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


FY2014 Actual

FY2015 Actual YoY (%)

Net Sales 58,672 61,977 106% Operating Income (Operating Income Ratio)

6,652 (11.3%)

2,385 (3.8%) 36%

ー Negative factors IT Agriculture: Prolonging stagnation in the Agriculture market IT Construction : Temporarily on a downturn with OEM Total Station, GPS: (North America and Australia) Downturn by the drop of

resource price

Positive factors New market development by investment of IT Agriculture market (Digi-Star, NORAC) IT construction in American and European Market continues steady growth

(YoY105%) Preparing for IoT business by development of telematics market (YoY 110%) Sales increase of drones mounted high precision GPS receiver (YoY 320%)

Review of FY2015 Financial Results

Overview of Each Company (Unit: Million Yen)


FY2014 Actual



5,965 (17.6%)

3,909 (11.8%) 66%

ー Negative factors Decreased demand after disaster recovery in Tohoku (Japan) Deterioration of market conditions (Russia, Middle East and South America) Delay in releasing new Total Station

Positive factors Launch new strategic Total Station (GT/iX YoY 4Q 120%) LN-100 Develop new market (Layout, Topo etc.) Sales increase in growing India’s market (YoY190%) Sales increase in 3D measuring business (Laser Scanner, MMS-- YoY 140%)


Overview of Each Company (Unit: Million Yen)


Positive factors Expand the business with ifa to IT solution field (EMR & Telemedicine) Further growth of OCT sales by Triton release (YoY110％ (qty) ) Dynamic sales growth in Screening Market (YoY 120% (qty) )

FY2014 Actual



5,093 (12.3%)

4,850 (11.1%) 95%

ー Negative factors Delayed FDA clearance of Maestro for US sales Slow-down in Latin America due to too-high currency depreciation


(Unit: Million Yen)

Overview of Each Company


POC=Positioning Company, SIC=Smart Infrastructure Company, ECC=Eye Care Company

External factors (w/o FX effects) POC: Impacts of IT Agriculture market downturn/ drop of resource price (Sales decline for 8B yen from organic business) SIC: Quiet down of demands from earthquake disaster reconstruction (Sales decline for 2B yen)

Major Deteriorated Causes

Measures Cost reduction YoY 1B yen (including lay off for 100 staffs)

Results ECC: Steady both in sales and profits Consolidated: Increased sales and decreased profits

POC: Increased sales and decreased profits SIC: Decrease sales and profits

vs Plan 2.5B yen

Internal factors ERP cost increase 1.5B yen Temporary cost increase 1B yen (new products development/ Acquisition of ifa) Release delay of new products

FY2015 Review


Ⅱ. FY2016 Full Year Plan


Sales: POC -- decrease, SI business -- leveling off, EC business -- increase Operating Profit: Expecting growth

FY2016 Outlook Macroenvironment

POC: IT Agriculture bottoming out, but continue to slow down oil price are bottoming out, but resource price are late to recover SI Business: Leveling off in public works in Japan

Continue the sense of uncertainty in Russia, Middle East and South America Stable in Asian market

EC Business: Continue the market stagnation by currency depreciation in South America Stable in North America and Europe market Currency Exchange: Continue the trend of strong yen

Forecast (YoY)

Measures - Strengthening the management structure (Operating base consolidation (esp. POC), improvement of business efficiency) - Increasing revenue in foundation business (cost reduction, procurement cost reduction, products model integration) - Accelerating the growing business (IT Construction, IT Agriculture, FDA clearance of Maestro)

POC=Positioning Company, SI business=Smart Infrastructure Business, EC business=Eye Care Business


［Consolidated］ FY2015 FY2016

1H Full Year 1H Full Year

Actual Actual Plan YoY(%) Plan YoY (%)

Net Sales

(): in FY15 Exchange rate 62,933 130,735

61,000 97% 130,000 100%

(66,000) 105% (139,000) 106% Operating Income (Operating Income Ratio)

(): in FY15 Exchange rate

4,620 (7.3%)

8,803 (6.7%)

3,700(6.1%) 80% 10,500(8.1%) 119%

(4,800)(7.3%) 104% (12,500)(9.0%) 142%

Ordinary Income 4,019 7,366 3,000 75% 9,000 122%

Net Income＊1 2,426 4,197 1,400 58% 5,000 119%

ROE 6.9% 8%

ROIC 5.4% 6% Dividends ¥12 ¥24 ¥8 ¥16

Exchange Rate

(Average)

ＵＳ$ ¥121.50 ¥120.16 ¥110.00 ¥110.00

ＥＵＲ ¥134.60 ¥132.36 ¥125.00 ¥125.00

FY2016 Full Year Plan (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.


［Consolidated］ FY2015 FY2016

1H Full Year 1H Full Year

Actual Actual Plan YoY(%) Plan YoY (%)

Net Sales

Positioning 31,445 61,977 29,000 92% 59,000 95%

Smart Infrastructure 16,231 32,989 15,500 95% 33,500 102%

Eye Care 19,510 43,834 20,000 103% 45,500 104%

Others 2,820 4,997 2,500 89% 5,000 100%

Elimination -7,073 -13,063 -6,000 -13,000

Total 62,933 130,735 61,000 97% 130,000 100%

Operating Income

(Operating Income Ratio)

Positioning 1,853 (5.9%)

2,385 (3.8%)

1,500 (5.2%) 81% 4,000

(6.8%) 167%

Smart Infrastructure

1,883 (11.6%)

3,909 (11.8%)

1,500 (9.7%) 80% 4,000

(11.9%) 102%

Eye Care 2,058 (10.5%)

4,850 (11.1%)

2,000 (10.0%) 97% 5,000

(11.0%) 103%

Others 94 (3.3%)

196 (3.9%)

200 (4.0%) 102%

Goodwill Amortization -1,269 -2,538 -1,300 -2,700

Total 4,620 (7.3%)

8,803 (6.7%)

3,700 (6.1%) 80% 10,500

(8.1%) 119%

FY2016 Full Year Plan (unit: million yen)


Appendix Ⅲ.


6.8

8.9 7.6

10.6

7.1

9.1

6.9

9.9

0.8

1.4 1.0

2.8

0.4

1.5

0.6

1.4

0.0

1.0

2.0

3.0

0.0

5.0

10.0

FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q

Net SalesOperating Income

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

7.9

10.7 10.4 12.2

7.9

11.6 9.8

14.5

0.3

1.2 1.0

2.6

0.5

1.6

0.5

2.3

0.0

1.0

2.0

3.0

0.0

5.0

10.0

15.0

FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q


Net Sales (billion yen)

13.0 14.3 12.3

19.1

14.4

17.0

13.3

17.3

1.2

1.8

0.5

3.2

0.6 1.2

-0.7

1.3

-1.0

0.0

1.0

2.0

3.0

0.0

5.0

10.0

15.0

20.0

FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q



26.4

33.0 29.2

39.9

27.6

35.3

28.6

39.2

1.7

4.2 2.1

8.1

0.9

3.7

-0.4

4.6

-1.0

1.0

3.0

5.0

7.0

9.0

0.0

10.0

20.0

30.0

40.0

FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q



Operating Income (billion yen)

Financial Results (Quarterly) 1. Consolidated 2. Positioning

3. Smart Infrastructure 4. Eye Care


59.4 69.2 62.9 67.8

61.0 69.0

5.9

10.1

4.6 4.2 3.7

6.8

0.0

5.0

10.0

15.0

0.0

20.0

40.0

60.0

80.0

FY14/1H FY14/2H FY15/1H FY15/2H FY16/1H FY16/2H



15.6

18.3 16.2 16.8

15.5 18.0

2.2

3.7

1.9 2.0 1.5

2.5

0.0

2.0

4.0

0.0

10.0

20.0




27.4 31.3 31.4 30.6 29.0 30.0

2.9

3.7

1.9

0.5

1.5

2.5

0.0

2.0

4.0

0.0

10.0

20.0

30.0

40.0




18.6

22.7 19.5

24.3

20.0

25.5

1.5

3.7

2.1 2.8

2.0

3.0

0.0

2.0

4.0

0.0

10.0

20.0

30.0




Financial Results and Plan (Semiannually) 1. Consolidated 2. Positioning

3. Smart Infrastructure 4. Eye Care


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 April 28, 2016 at 17:00(UTC+9).

Inquiries: General Administration & Legal Div. Public, Investor Relations and Shareholder Relations Dept. TOPCON CORPORATION Tel: +81-3-3558-2532 E-mail: [email protected] URL: http://global.topcon.com/invest/

Cautionary Note regarding Forward-Looking Statements

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