fy2014 3q financial results...©2015 topcon corporation fy2014 3q financial results in this...

©2015 Topcon Corporation

FY2014 3Q Financial Results In this presentation, “FY2014” refers to the fiscal year ending March 31, 2015.

January 30, 2015 TOPCON CORPORATION President & CEO Satoshi Hirano

©2015 Topcon Corporation 1

CONTENTS

FY2014 3Q Financial Results

FY2014 Full Year Forecast

Ⅲ Appendix

Ⅰ FY2014 3Q Financial Results

Ⅱ


Ⅰ. FY2014 3Q Financial Results Ⅰ- 1. FY2014 3Q Financial Results

Ⅰ- 2. Overview of Each Company


Trends of 3Q Financial Results

・Execution of Growth Strategy ・Steady US Market Conditions

Topic <Significantly improved sales and profit on YoY basis>

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

0

20

40

60

80

100

120

08/1-3Q 09/1-3Q 10/1-3Q 11/1-3Q 12/1-3Q 13/1-3Q 14/1-3Q

5.7

8.0

88.6

79.3 39% Profit growth 12% Revenue growth

Operating Income

Net Sales

Net Sales (billion yen)

Operating Income (billion yen)


FY2014 3Q Financial Results <Drastic improve on YoY basis>

[Consolidated] FY2013/1-3Q FY2014/1-3Q

Actual Actual YoY (%)

Net Sales 79,322 88,647 112%

Gross Profit (Gross Profit Ratio)

37,635

(47.4%)

44,206

(49.9%) 117%

SGA 31,896 36,242 114%

Operating Income (Operating Income Ratio)

5,738

(7.2%)

7,963

(9.0%) 139%

Ordinary Income 5,992 7,372 123%

Net Income 2,245 4,375 195%

Exchange Rate (Average)

ＵＳ$ ¥99.23 ¥107.27 ¥8.04

ＥＵＲ ¥132.13 ¥140.50 ¥8.37

4

(unit: million yen)


[Consolidated] FY2013/1-3Q FY2014/1-3Q

Actual Actual YoY

Net Sales

Positioning 33,148 39,699 120% Smart Infrastructure 23,422 23,275 99% Eye Care 26,185 28,951 111% Others 4,526 5,059 112% Elimination -7,960 -8,337 - Total 79,322 88,647 112%

Operating Income

(Operating Income Ratio)

Positioning 2,210 (6.7%)

3,463 (8.7%) 157%

Smart Infrastructure 2,920 (12.5%)

3,287 (14.1%) 113%

Eye Care 2,024 (7.7%)

2,439 (8.4%) 121%

Others -67 (- 1.5%)

98 (1.9%) -

Goodwill Amortization -1,350 -1,325 -

Total 5,738 (7.2%)

7,963 (9.0%) 139%

5

FY2014 3Q Company Financial Results <All companies made significant growth in profit>

(unit: million yen)


¥8.3B

FY2013/1-3Q

FY2013/1-3Q

FY2013/1-3Q

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

FY2013/1-3Q FY2014/1-3Q FY2014/1-3Q

FY2014/1-3Q FY2014/1-3Q FY2014/1-3Q

FY2014/1-3Q ・POC: Booming construction market ・ECC: Expanding screening market

・SIC: Stable Japanese market ・ECC: Steady OCT sales

・ECC: Sign of recovery ・SIC: Slow market

¥4.5B ¥7.9B

¥22.3B ¥21.1B ¥19.5B ¥16.7B ¥17.7B ¥19.8B

¥4.6B ¥7.9B ¥8.2B

117％ 119% 113%

100% 98%

6

102%

・SIC: Growth in Middle East ・ECC: Growth in South America

Domestic and Overseas Sales (YoY) <Strong advanced countries>

Japan North America

Europe

China Asia/Oceania Others

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


Ⅰ. FY2014 3Q Financial Results Ⅰ- 1. FY2014 3Q Financial Results

Ⅰ- 2. Overview of Each Company

7


FY2013/1-3Q Actual

FY2014/1-3Q Actual YoY(%) FY2014

Forecast Net Sales 33,148 39,699 120% 57,000


2,210 (6.7%)

3,463 (8.7%) 157% 6,200

(10.9%)

8

Review of FY2014 1-3Q Financial Results

ー Negative factor Stagnant Agriculture market (tentative crop price down)

Positive factors Up trend in US construction market (YoY119％) IT construction business continues strong growth (YoY145％) Growth in China with new distribution (YoY253％)

Overview of Each Company <Accelerating penetration of IT Construction>

(unit: million yen)


Overview of Each Company <Strong sales in Japan & steady sales in US>

FY2013/1-3Q Actual


Forecast Net Sales 23,422 23,275 99％ 37,000


2,920 (12.5%)

3,287 (14.1%) 113% 5,900

(15.9%)

9


ー Negative factors Sluggish market in Russia Sluggish market in China

Positive factors Strong sales in Japanese market (YoY 120％) Steady sales in US market (YoY 115％)

(unit: million yen)


FY2013/1-3Q Actual


Forecast Net Sales 26,185 28,951 111% 42,000


2,024 (7.7%)

2,439 (8.4%) 121% 5,500

(13.1%)

10


ー Negative factor Delay of FDA approval (US market)

Positive factors Recovery of South-East Asian market, addition to steady

European and US market Rapid growth of fundus camera for screening market (YoY270%)

Overview of Each Company <Stable OCT & Screening market>

(unit: million yen)


Ⅱ. FY2014 Full Year Forecast

Ⅱ-1. FY2014 Full Year Forecast

Ⅱ-3. Summary Ⅱ-2. Strategic Plans by Company

11


［Consolidated］

FY2013 FY2014

Full Year Full Year October 31, 2014

Actual Forecast YoY(%) Announcement

Net Sales 116,685 130,000 111% 130,000


11,730 (10.1%)

16,000 (12.3%)

136% 16,000 (12.3%)

Ordinary Income 11,300 14,500 128% 14,500

Net Income 5,963 8,300 139% 8,300

ROE 11.7% 15% 15%

ROIC 7.9% 11% 11%

Dividends ¥10 ¥16 ¥16

Exchange Rate (Average)

US$ ¥100.00 ¥109.05 ¥101.89

EUR ¥134.01 ¥139.23 ¥137.19

12

FY2014 Full Year Forecast (unit: million yen)

Assumed exchange rate after January 2015 is ¥115/US$, ¥135/EUR


［Consolidated］

FY2013 FY2014

Full Year Full Year October 31, 2014

Actual Forecast YoY(%) Announcement

Net Sales

Positioning 48,959 57,000 116% 57,000

Smart Infrastructure 34,621 37,000 107% 37,000

Eye Care 38,736 42,000 108% 42,000

Others 6,625 7,000 106% 7,000

Elimination -12,258 -13,000 -13,000

Total 116,685 130,000 111% 130,000

Operating Income

(Operating Income Ratio)

Positioning 4,514 (9.2%)

6,200 (10.9%) 137% 6,200

(10.9%)

Smart Infrastructure 5,201 (15.0%)

5,900 (15.9%) 113% 5,900

(15.9%)

Eye Care 4,003 (10.3%)

5,500 (13.1%) 137% 5,500

(13.1%)

Others -205 (-3.1%)

300 (4.3%) ― 300

(4.3%)

Goodwill Amortization -1,782 -1,900 -1,900

Total 11,730 (10.1%)

16,000 (12.3%) 136% 16,000

(12.3%)

13

FY2014 Company Full Year Forecast (unit: million yen)



Ⅱ-1. FY2014 Full Year Forecast Ⅱ-2. Strategic Plans by Company

Ⅱ-3. Summary

14


0.0

1.0

2.0

3.0

4.0

0

10

20

30

40

FY11/1-3Q FY12/1-3Q FY13/1-3Q FY14/1-3Q

1. Positioning Company

15

2.2

0.3

3.5

■ Expand the IT construction sales in global market

Reinforcing sales in growing American market ■

YoY 157%

■ Strategic investment for future growth of IT Agriculture business

Strategic Plans by Company <Reinforcing sales in growing market>

Dodge Construction Index

NA Construction Investment amount


Operating Income (billion yen) Net Sales

Operating Income


2008 2009 2010 2011 2012 2013 2014 見込

日本米国・欧州・その他

x15

Market Trend in Japan Japan America/Europe/Others

x3

Forecast

・ Strong growth of IT construction demand in Japan market following US and Europe ・ Continued global growth Sales Transition of Topcon

IT Construction Business (Global basis)

IT Construction Business <Expand sales in global market>

Source: Nikkei BP

River Construction Civil Construction Paving Construction Others

1,200 1,000 800 600 400 200 0

2008 2009 2010 2011 2012 2013

Number of Projects utilized IT Execution Technique


Sales Transition of Topcon IT Agriculture Business (Global basis)

2008 2009 2010 2011 2012 2013 2014

x6

Forecast

出所： FAO （国連食糧農業機関）

Cereal production, utilization, and stock

Data source; FAO

17

Utilization

Stock

Production

・ Huge potential in Agriculture market ・ Accelerating penetration of IT Agriculture across the globe

IT Agriculture Business <IT Agriculture market trend>


Business Development & manufacturing of Console for heavy machinery

Key Milestone for Business growth in Agriculture market

Acquisition

IT Agriculture Business <Strategic investment for further expansion>


GPS

MC & AG＊

Apr Mar Jan 2014 2015

Jul Oct

C-63 Compaction Management System

19

Magnet for AG Software for precision Ag

Apollo ECU Seeding and fertilizer control

SGIS Enterprise Ag site management software

New Product Launch <Reinforcing growing business with strategic new products>

GCX2 Revolutionary GNSS receiver

MAGNET Enterprise Mobile MAGNET app for tablet NET-G5

448 Channels QZSS・Beidou Compatible

X25 Console Middle range console

Water Management X30 Water volume management by field maintenance

＊ MC= Machine Control AG= Agriculture


Strategic Plans by Company <Concentrating on expansion of core business>

2. Smart Infrastructure

20

Focus on steady US market: Launching high value added products into building and construction markets

■ Focus on active Japanese market: Expanding sales for IT construction demands stimulated by construction investment lead by National economic policy, “Abenomics”

■

-0.5

0.5

1.5

2.5

3.5

0

5

10

15

20

25

FY11/1-3Q FY12/1-3Q FY13/1-3Q FY14/1-3Q

2.9 2.2

Net Sales Operating Income

3.3

YoY 113 %

30,000

40,000

50,000

2009 2010 2011 2012 2013 2014Forecast

Japanese Construction Investment

Source : MLIT

(billion Yen)

113%

0

Net Sales (billion Yen)

Operating Income (billion Yen)


2013 1H 2013 2H 2014 1H 2014 2H Forecast

Focus on Active Japanese Market <Launching new products for IT construction>

Increasing Demands for IT Construction Products

Topcon Sales in Japan

Construction Investment in Tohoku Region

0

1

2

3

4

5

6

7

2012 2013 2014

Private Sectors

Public Sectors

High Market Share &

Strong Sales Network

Advanced IT Construction

Products

(Trillion Yen)

Provides Solution System

21

Labor Shortage

Shorten Construction

Period

High Demands for Reconstruction


2013 1H 2013 2H 2014 1H 2014 2HForecast

Competitive High Value Added Products

Demands Shifted to Products with More

Efficiency

US Housing Starts Topcon Sales in US

Maximum Results with Minimum Investment 1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

3,100

3,300

2012 2013 2014

(x1,000)

22

Steady Investment for Construction

Focus on Steady US Market <Launching high value added products>

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

3,100

3,300

2008 2009 2010 2011 2012 2013 2014

(x1,000)

Improve Efficiency

Increase Profit

Provides Solution System


型

Apr Jul Mar Oct Jan 2014 2015

New Product Launch <Enhancing line up of key products>

ES/CX-P

GLS-2000

ScanMaster

DS-200i

23

IP-S3

Mobile Master

SiteHunter

3D Measurement and others

Total Stations and others


0.0

1.0

2.0

3.0

0

5

10

15

20

25

30

FY11/1-3Q FY12/1-3Q FY13/1-3Q FY14/1-3Q

2.0

0.7

3. Eye Care

24

2.4

YoY 121%

Treatment Market: Fully-filled PASCAL Laser line-up/ Aladdin sales area expansion

3D OCT: Release of new model Triton (high-end premium OCT), addition to the high volume market model Maestro Screening Market: Sales expansion of full-auto fundus camera (1–3Q YoY: 270%)

■

■

■

Strategic Plans by Company <Release of premium OCT>

Net Sales Operating Income

Net Sales (billion Yen)

Operating Income (billion Yen)


TRC-NW400 Maestro

New Model Triton Launch <Additional line-up>

25

R&D (University

Hospital, etc..)

Clinical (University Hospital・

Clinic)

Screening (Clinic, Medical Check-Up)

“Easy-To-Operate, Full Auto Function”

FDA Approved

in Sept


NOW ON SALE !!

High-End Premium OCT Disruptive Innovative Products

New Model Triton Launch <High-end premium OCT>

26

- World Fastest Scan - New Valuable Function for Clinical/ R&D


New Model Triton Launch <High-end premium OCT>

NOW ON SALE!!

Visible from Invisible!!

27

Normal OCT Normal eye

DRI OCT Triton Normal eye

＊Swept Source Technology A frequency swept light source and a high speed detector are used to detect the interference signal as a function of time, instead of a spectrometer and camera as in spectral-domain technology.

Super High Quality Image/ Deeper Penetrating OCT IMAGE Capturing deeper, wider ever..

Reduction of Runaway Medical Expense

Beautiful

Faster

Deeper DRI OCT Triton Age-Related Macular Degeneration

Normal OCT Age-Related Macular Degeneration

Provided by Dr. Ichiro Maruko (Fukushima Medical University, Tokyo Women's Medical University)

Equipped with Swept Source Technology＊

Early Detection Early Treatment


上期下期上期下期見込

FY2013 FY2014

1H 2H 1H 2H

forecast

New Model Triton Launch <Announced at Annual Congress of Japan Clinical Ophthalmology >

Planning rapid grow in the Research-Ophthalmologic Clinical Field

The 68th Annual Congress of Japan Clinical Ophthalmology (Nov, 2014 at Kobe)

Highly Praised by

Doctors!!

28

Number of Academic

Lecture relating Triton: No.1

43％ of the total Subjects

(19 Subjects)

■Triton ■Topcon Other OCT

■Company A

■Company B

■Company C

■Others

3D OCT Series Sales Transition

Triton

Launch


上期下期上期下期上期下期上期下期上期下期上期下期

FY2013 FY2014

Screening Treatment Product Global Sales Transition (qty)

Streamline &

New Synthesis (TwinStar)

FY2013 FY2014 FY2013 FY2014

Full Auto Easy-To-Operate, Full Auto Function Fundus Camera

TRC-NW300 & NW400 Aladdin

(Biometer)

Preoperative Machine for Cataract Surgery

Easy-To-Operate to measure

corneal shape, axial length

Multi-Colored Laser One machine for variety of ocular

disease

下期見込下期見込

29

1H 2H 1H 2H Forecast 1H 2H 1H 1H 2H 1H 2H Forecast

Steady sales after launch in

US market 2H Forecast

Sales Growth for Screening and Treatment Product Market <Leading to profitable growth>


Examination/Diagnosis

Treatment

FDA Approval （Forecast）

30

CT-800

SL-D701

TRC-NW400

CL-200Touch

Apr Jul Mar Oct 2014

PASCAL Synthesis TwinStar

FDA Approved

TRC-NW8F Plus

DRI OCT Triton / plus

IMAGEnet6 OCT viewer 10

CV tablet

2015

Aladdin

New Product Launch <Disruptive innovative products DRI OCT Triton>

FDA Approved

FDA Approved

FDA Approved



Ⅱ-1. FY2014 Full Year Forecast Ⅱ-2. Strategic Plans by Company

Ⅱ-3. Summary

31


130.0

0.0

4.0

8.0

12.0

16.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

FY11 FY12 FY13 FY14 Forcast

Summary <Heading toward the target>

11.7

16.0 1Q-3Q Net Sales

32

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

4Q Net Sales

YoY

136%

116.7 Annual Operating Income

Trends of Financial Results Operating Income (billion yen)



We will strive to increase the corporate value to reach the target of ROE20% in FY2015

We will accelerate revenue growth and high profitability furthermore

then implement our growth strategy

Summary

33


Appendix Ⅲ.

34


6.8

9.1 7.5

11.2

6.8

8.9 7.6

0.4

1.5

0.9

2.3

0.8

1.4

1.0

0.0

0.5

1.0

1.5

2.0

2.5

0.0

5.0

10.0

15.0

FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q

Net SalesOperating Income

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

7.5

9.6

9.1

12.6

7.9

10.7 10.4

0.02

1.2

0.8

2.0

0.3

1.2

1.0

0.0

0.5

1.0

1.5

2.0

0.0

5.0

10.0

15.0

FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q



10.7 11.7 10.8

15.8 13.0

14.3 12.3

0.8 1.1

0.4

2.3

1.2

1.8

0.5

0.0

0.5

1.0

1.5

2.0

2.5

0.0

5.0

10.0

15.0

20.0

FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q



24.1 28.7 26.5

37.4

26.4

33.0 29.2

0.7

3.4

1.6

6.0

1.7

4.2

2.1

0.0

2.0

4.0

6.0

0.0

10.0

20.0

30.0

40.0

FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q



Operating Income (billion yen)

35

Financial Results (Quarterly) 1. Consolidated 2. Positioning

3. Smart Infrastructure 4. Eye Care


46.1 51.2 52.8

63.9 59.4 70.6

1.5

3.7 4.1

7.6

5.9

10.1

0.0

5.0

10.0

15.0

0.0

20.0

40.0

60.0

80.0

FY12/1H FY12/2H FY13/1H FY13/2H FY14/1H FY14/2H


13.7 16.1 15.9

18.7

15.6 21.4

1.5

2.7

2.0

3.2

2.2

3.7

0.0

1.0

2.0

3.0

4.0

0.0

5.0

10.0

15.0

20.0

25.0



17.4 20.4 22.4

26.6 27.4 29.6

0.5 0.9

1.8 2.7 2.9

3.3

0.0

1.0

2.0

3.0

4.0

0.0

10.0

20.0

30.0

40.0



14.5 16.6 17.1

21.7 18.6

23.4

0.5 1.1

1.3

2.8

1.5

4.0

0.0

1.0

2.0

3.0

4.0

5.0

0.0

5.0

10.0

15.0

20.0

25.0



36

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

3. Smart Infrastructure 4. Eye Care

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) Operating Income (billion yen)


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 30, 2015 at 16:30(UTC+9).

Inquiries: General Accounting & Finance Div. Public & Investor 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

fy2014 3q financial results...©2015 topcon corporation fy2014 3q financial results in this...

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