©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.
©2014 Topcon Corporation
CONTENTS
1
FY2013 3Q Financial Results
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
©2014 Topcon Corporation
-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)
Net Sales (billion yen)
Ordinary Income (billion yen)
Operating Income (billion yen)
©2014 Topcon Corporation
FY2013 3Q Financial Results
<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)
©2014 Topcon Corporation
[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>
©2014 Topcon Corporation
¥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.
©2014 Topcon Corporation 7
Ⅰ. FY2013 3Q Financial Results Ⅰ- 1. FY2013 3Q Financial Results
Ⅰ- 2. Overview of Each Company
©2014 Topcon Corporation
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
©2014 Topcon Corporation
FY2012/1-3Q Actual
FY2013/1-3Q Actual YoY (%)
Net Sales 25,494 33,148 +7,654 (130%) Operating Income (Operating Income Ratio)
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)
©2014 Topcon Corporation
FY2012/1-3Q Actual
FY2013/1-3Q Actual YoY (%)
Net Sales 21,388 26,185 +4,797 (122%) Operating Income (Operating Income Ratio)
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)
©2014 Topcon Corporation 11
Ⅱ. FY2013 Full Year Forecast
Ⅱ-1. FY2013 Full Year Forecast Ⅱ-2. Strategic Plans by Company Ⅱ-3. Summary
©2014 Topcon Corporation
[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)
©2014 Topcon Corporation
[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)
©2014 Topcon Corporation 14
Ⅱ. FY2013 Full Year Forecast
Ⅱ-1. FY2013 Full Year Forecast Ⅱ-2. Strategic Plans by Company
Ⅱ-3. Summary
©2014 Topcon Corporation
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FY11/1-3Q FY12/1-3Q FY13/1-3Q
Net Sales (billion yen)
Operating Income (billion yen)
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
©2014 Topcon Corporation
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
©2014 Topcon Corporation
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
©2014 Topcon Corporation
■ 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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1
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5
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FY11/1-3Q FY12/1-3Q FY13/1-3Q
Net Sales (billion yen)
Operating Income (billion yen)
2.2
0.3
Net Sales Operating Income
Strategic Plans by Company <Accelerate OEM and fortify Asia markets>
©2014 Topcon Corporation
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>
©2014 Topcon Corporation
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
©2014 Topcon Corporation 21
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20
25
30
FY11/1-3Q FY12/1-3Q FY13/1-3Q
Net Sales (billion yen)
Operating Income (billion yen)
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>
©2014 Topcon Corporation
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)
©2014 Topcon Corporation
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
©2014 Topcon Corporation
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!
©2014 Topcon Corporation 25
FY2013 Full Year Forecast Ⅱ.
Ⅱ-1. FY2013 Full Year Forecast Ⅱ-2. Strategic Plans by Company
Ⅱ-3. Summary
©2014 Topcon Corporation
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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)
Operating Income (billion yen)
Net Sales
Operating Income
©2014 Topcon Corporation 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.”
Summary
©2014 Topcon Corporation 28
Appendix Ⅲ.
©2014 Topcon Corporation
(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
©2014 Topcon Corporation
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
Net SalesOperating Income
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
Net SalesOperating Income
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
Net SalesOperating Income
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)
Operating Income (billion yen) Net Sales (billion yen) Operating Income (billion yen) Net Sales (billion yen)
©2014 Topcon Corporation
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
Net SalesOperating Income
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
FY11/1H FY11/2H FY12/1H FY12/2H FY13/1H FY13/2H
Net SalesOperating Income
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
FY11/1H FY11/2H FY12/1H FY12/2H FY13/1H FY13/2H
Net SalesOperating Income
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
FY11/1H FY11/2H FY12/1H FY12/2H FY13/1H FY13/2H
Net SalesOperating Income
31
Financial Results and Forecast (Semiannually) 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)
Operating Income (billion yen) Net Sales (billion yen) Operating Income (billion yen) Net Sales (billion yen)
-0.02
©2014 Topcon Corporation
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
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