1
Earnings Presentation for 3Q FY2010
Feb. 9, 2011
The estimates and projection in this presentation are forward-looking statements based on the information available at the time of the announcement. Actual results may differ materially depending on a variety of factors. Figures less than 1 billion yen have been rounded down.
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1. 3Q10 Results (3 months ended Dec. 31, 2010)(9 months ended Dec. 31, 2010)
2. FY2. FY2. FY1110 Forecast0 Forecast0 Forecast
Supplementary InformationSupplementary InformationSupplementary Information
3
3Q10 (9 months ended Dec. 31, 2010) Summary
3Q09 3Q10 YoY
(billion yen) Results % to net sales Results % to net
sales Change %
Net Sales 190.9 - 215.9 - +25.0 +13.1%
Operating income
7.0 3.7% 14.8 6.9% +7.7 +109.8%
Ordinary income
7.8 4.1% 12.7 5.9% +4.8 +62.1%
Net income
3.8 2.0% 7.3 3.4% +3.5 +92.2%
¥94/USD ¥87/USD ▲¥7Exchange rate
¥133/EURO ¥114/EURO ▲¥19
Annual effect of exchange rate(1 weaker yen) +50 million yen+120 million yenEURO
+300 million yen+900 million yenUSD
Operating incomeNet sales
4
Operation Results
3Q08 3Q09 3Q10
3Q08 3Q09 3Q10
Other Products
Industrial Machinery
Electronic Products
Devices and Components
Watches and Clocks
12.2
246.3 190.9 215.9
7.0 14.8
Sales
OperatingIncome
(billion yen)
3Q10 Results (9 months)
(billion yen)
Net sales +¥25.0B
Operating income+¥7.8B
※The graph of sales and operating income of 3Q09 and 3Q10 is numerical values rearranged to a new segment.
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3Q10 (3 months ended Dec. 31, 2010) Summary
3Q09 3Q10 YoY change
(billion yen) Results % to net sales Results % to net
sales Amount %
Net sales 71.2 - 78.0 - +6.8 +9.6%
Operating income
5.3 7.5% 6.8 8.8% +1.5 +28.4%
Ordinary income
5.6 7.9% 6.3 8.1% +0.7 +12.4%
Net income
2.7 3.8% 3.6 4.7% +0.9 +34.5%
¥90/USD ¥83/USD ▲¥7Exchange rate
¥133/EURO ¥113/EURO ▲¥20
Annual effect of exchange rate(1 weaker yen) +50 million yen+120 million yenEURO
+300 million yen+900 million yenUSD
Operating incomeNet sales
6
Quarterly Results
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E
Other productsIndustrial machineryElectronic productsDevices and componentsWatches and clocks
61.571.2 64.9
0.15.3 2.9
72.9
5.0
68.0
6.8
78.0
1.7
(billion yen)
Net sales
Operating income
3Q10 Results (3 months)
(billion yen)
7
0
30
60
90
120
3Q08 3Q09 3Q10
Watches Clocks
8.7%11.6%11.9%
0
60
120
180
240
3Q08 3Q09 3Q100%
6%
12%
18%
24%Operatingmargin
110.2 97.9 13.0 8.5106.5 12.3
3Q10 Results (9 months)
Watches and ClocksSales Operating income
(billion yen) (billion yen)
3Q10 Results (Compared to3Q09)
Net sales +¥8.6B Operating income +¥3.8B
※The graph of sales and operating income of 3Q09 and 3Q10 is numerical values rearranged to a new segment.
8
0
12
24
36
48
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E
Watches Clocks
37.5 28.8 30.7 35.0 40.7 30.0
15.4%
10.3%7.9%
2.4%
6.0%
14.3%
0
2
4
6
8
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E0%
5%
10%
15%
20%Operatingmargin
5.3 0.6 2.4 3.6 6.2 1.8
3Q10 Results (3 months)
Watches and Clocks
(billion yen)
Sales Operating income
(billion yen)
3Q10 Results (Compared to3Q09)
Net sales +¥3.2B Operating income +¥0.9B
・The cell Inn in the Holiday sales changes to the final product well.
・The gain of demand of the movement sales according to a worldwide market recovery.
・The profit increase according to the product mix improvement of movement.
9
0
25
50
75
100
3Q08 3Q09 3Q10
Opto devices Quartz devices Other parts
1.3%
5.0%
7.2%
0
1
2
3
4
3Q08 3Q09 3Q100%
2%
4%
6%
8%Operatingmargin
68.8 51.4 55.3 0.9 3.6 2.7
Sales Operating income
3Q10 Results (9 months)
Devices and Components
Net sales +¥3.9B Operating income ▲¥0.9B
(billion yen) (billion yen)
3Q10 Results (Compared to3Q09)
※The graph of sales and operating income of 3Q09 and 3Q10 is numerical values rearranged to a new segment.
10
6.4%
0.0%2.1%
8.5%
2.5%
6.5%
0
1
2
3
4
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E0%
5%
10%
15%
20%Operatingmargin
0
5
10
15
20
25
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10EOpto devices Quartz devicesOther parts
18.4 17.3 18.8 18.5 17.9 17.8 1.5 0.4 1.2 1.1 0.3 0.0
3Q10 Results (3 months)
Devices and ComponentsSales Operating income
(billion yen) (billion yen)
3Q10 Results (Compared to3Q09)
Net sales ▲¥0.5B Operating income ▲¥1.2B
・Progress of unit price fall and influence of appreciation of the yen (LED and HDD glass substrate etc.)
・Increased demand of electronic viewfinder for DSC.
11
0
7
14
21
28
3Q08 3Q09 3Q10Healthcare equipment
Printers, calculators
4.0%3.1%2.4%
0
0.5
1
1.5
2
3Q08 3Q09 3Q100%
3%
6%
9%
12%Operatingmargin
16.0 14.9 15.9 0.6 0.3 0.4
3Q10 Results (9 months)
Electronic ProductsSales Operating income
(billion yen) (billion yen)
Net sales +¥1.0B Operating income +¥0.1B
※The graph of sales and operating income of 3Q09 and 3Q10 is numerical values rearranged to a new segment.
3Q10 Results (Compared to3Q09)
12
0
2.5
5
7.5
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10EHealthcare equipmentPrinters, calculators
1.0%
5.2% 3.4%
2.6%
5.0%3.8%
0
0.1
0.2
0.3
0.4
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10E0%
2%
4%
6%
8%Operatingmargin
4.9 5.5 4.4 5.8 5.7 5.8 0.1 0.2 0.0 0.3 0.1 0.2
3Q10 Results (3 months)
Electronic ProductsSales Operating income
(billion yen) (billion yen)
3Q10 Results (Compared to3Q09)
Net sales +¥0.8B Operating income ±¥0.0B
・The POS printer and the label printer change well.
・Gain of demand of large-scale Dot impact printer (for China)
・The healthcare equipment (Digital pedometer and Digital thermometer) is sluggish from the market saturation.
13
0
10
20
30
40
3Q08 3Q09 3Q10Other machineryNC automatic lathes
6.2%3.8%
▲34.8%
▲ 5
▲ 3
0
3
5
▲40%
▲20%
0%
20%
40%Operatingmargin
3Q09
28.4 11.9 26.1 1.0 ▲4.1 1.6
3Q08 3Q10
3Q10 Results (9 months)
Industrial MachinerySales Operating income
(billion yen) (billion yen)
Net sales +¥14.2B Operating income +¥5.7B
※The graph of sales and operating income of 3Q09 and 3Q10 is numerical values rearranged to a new segment.
3Q10 Results (Compared to3Q09)
14
0
3
6
9
12
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10ENC automatic lathes
▲3.3%
▲27.3%
7.5%5.7%5.5% 7.3%
▲ 2
▲ 1
0
1
2
▲30%
▲15%
0%
15%
30%Operatingmargin
3Q09 4Q09
4.9 6.4 7.4 9.6 9.0 10.7 ▲1.3 ▲0.2 0.4 0.7 0.5 0.8
1Q10 2Q10 3Q10 4Q10E
3Q10 Results (3 months)
Industrial MachinerySales Operating income
(billion yen) (billion yen)
3Q10 Results (Compared to3Q09)
Net sales +¥4.1B Operating income +¥1.8B
・The profit increase according to an increase in sales and the effects of the reduction of fixed costs.
・It is a stagnation feeling to demand in an Asian region where the market recovery was pulled in the first half of the term.
15
0
10
20
30
3Q08 3Q09 3Q10Jewelry Pachinko-related products Other
2.4%
▲0.5%
4.9%
▲ 0.5
0.0
0.5
1.0
1.5
3Q08 3Q09 3Q10-3%
0%
3%
6%
9%Operatingmargin
22.7 14.6 11.8 0.5 0.7 ▲0.0
3Q10 Results (9 months)
Other ProductsSales Operating income
Net sales ▲¥2.8B Operating income ▲¥0.7B
(billion yen) (billion yen)
3Q10 Results (Compared to3Q09)
※The graph of sales and operating income of 3Q09 and 3Q10 is numerical values rearranged to a new segment.
16
0
2.5
5
7.5
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10EOtherPachinko-related productsJewelry
▲5.9%
5.7% 5.7%
▲5.5%▲2.8%
▲10.3%
▲ 0.6
▲ 0.3
0.0
0.3
0.6
▲20%
▲10%
0%
10%
20%Operatingmargin
5.3 3.3 3.5 3.7 4.5 3.6 0.3 ▲0.3 ▲0.2 ▲0.1 0.2 ▲0.2
4Q10E3Q102Q101Q104Q093Q09
3Q10 Results (3 months)
Other ProductsSales Operating income
(billion yen) (billion yen)
3Q10 Results (Compared to3Q09)
Net sales ▲¥0.8B Operating income ▲¥0.1B
・Jewelry : Depression of consumer confidence of market
・3Q of the equipment for the Pachinko-related products is a sales increase. However, the peripheral capital investment trend is opaque.
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1.1.1. 3Q10 Results 3Q10 Results 3Q10 Results (3 months ended Dec. 31, 2(3 months ended Dec. 31, 2(3 months ended Dec. 31, 2000111000)))(9 months ended Dec. 31, 2010)(9 months ended Dec. 31, 2010)(9 months ended Dec. 31, 2010)
Supplementary InformationSupplementary InformationSupplementary Information
2. FY10 Forecast
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FY10 Forecast
FY10 FY09
(billion yen)
Forecast % to net sales Results % to net sales
Net sales 284.0 - 252.5 -Operating income 16.5 5.8% 7.2 2.9%
Ordinary income 14.0 4.9% 7.9 3.2%
Net income 7.0 2.5% 3.5 1.4%USD ¥86 ¥93
FY
EURO ¥113 ¥131
Net sales 146.1 - 132.8 -Operating income 8.5 5.8% 5.5 4.1%
Ordinary income 7.6 5.2% 5.7 4.3%
Net income 3.3 2.3% 2.4 1.8%USD ¥82 ¥90
2H
EURO ¥110 ¥130
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FY10 Forecast
FY10 FY10
FY08 FY09 FY10 FY10
Other Products
Industrial Machinery
Electronic Products
Devices and Components
Watches and Clocks
1.3
296.8 252.5 280.0
7.2 14.0
Sales
OperatingIncome
(billion yen)
(billion yen)
284.0
16.5
FY08 FY09 11/8E
11/8E
2/9E
2/9E
※The graph of sales and operating income of FY09 and FY10 is numerical values rearranged to a new segment.
20
2. FY10 Forecast2. FY10 Forecast2. FY10 Forecast
Supplementary Information
1.1.1. 3Q10 Results 3Q10 Results 3Q10 Results (3 months ended Dec. 31, 2(3 months ended Dec. 31, 2(3 months ended Dec. 31, 2000111000)))(9 months ended Dec. 31, 2010)(9 months ended Dec. 31, 2010)(9 months ended Dec. 31, 2010)
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R&D
11.013.7
10.8 10.58.4 9.0
3.3%
4.1%
3.2%3.5% 3.4%
3.2%
0
4
8
12
16
20
FY05 FY06 FY07 FY08 FY09 FY10E0%
1%
2%
3%
4%
5%R&D% to net sales
Supplementary
(billion yen)
22
Capex/Depreciation
21.3
25.1
16.516.2
18.921.4
20.1
14.9 15.0
29.0
19.5
8.7
0
5
10
15
20
25
30
35
FY05 FY06 FY07 FY08 FY09 FY10E
CapexDepreciation
Supplementary
(billion yen)
23
344,486,788
320,257,278 322,120,527333,777,359
346,840,088
367,812,417
300,000,000
325,000,000
350,000,000
375,000,000
400,000,000
FY05 FY06 FY07 FY08 FY09 FY10E
Average number of outstanding shares during term
EPS
18.5
7.112.1
-25.8
7.03.5
¥35.14
▲¥77.32
¥21.73¥19.43¥11.01
¥53.23
▲ 27
▲ 18
▲ 9
0
9
18
27
FY05 FY06 FY07 FY08 FY09 FY10E
▲ 90
▲ 60
▲ 30
0
30
60
90
Net incomeEPS (right axis)
Supplementary
(billion yen)
(shares)
(Yen)
※excluding treasury stock
24
▲ 25.8
3.5
18.57.1
12.12.7%
4.9%
▲12.3%
2.0%
7.2%
▲ 26
▲ 13
0
13
26
FY05 FY06 FY07 FY08 FY09
▲16%
▲8%
0%
8%
16%
Net incomeROE (right axis)
258.6 264.4247.3
213.5187.8
150
200
250
300
FY05 FY06 FY07 FY08 FY09
Shareholders' equity
ROESupplementary
(billion yen)
(billion yen) ※average of the beginning and end of the term
25
64.0%
495.0%
63.6%135.1%
0%
100%
200%
300%
400%
500%
FY05 FY06 FY07 FY08 FY09
Ratio of return to shareholders
18.5
7.112.1
▲ 25.8
3.5
▲ 26
▲ 13
0
13
26
39
FY05 FY06 FY07 FY08 FY09
Ratio of Return to Shareholders
5.1 5.3 7.83.3 2.2
20.0
30.0
20.0
Total dividends paid
Purchases for treasury stock
Net income
30%
Supplementary
(billion yen)
26
8,687 8,559 8,448 8,467 8,631 8,621 8,607
10,972 11,835 11,356 11,16013,803 14,264 14,497
0
5,000
10,000
15,000
20,000
25,000
2009/6 2009/9 2009/12 2010/3 2010/6 2010/9 2010/12
Overseas
Japan
20,394 19,804 22,43419,627 22,88519,659 23,104
Supplementary
Group Employees (consolidated)(person)