FY2016 1Q Financial Results

Transcription

1 FY2016 1Q Financial Results July 29, 2016 TOPCON CORPORATION Director and Executive Officer, CFO General Manager of Accounting & Finance Div. Haruhiko Akiyama

2 CONTENTS FY2016 1Q Financial Results Ⅰ Ⅱ Ⅲ FY2016 1Q Financial Results FY2016 Full Year Plan Appendix 2016 Topcon Corporation 1

3 Ⅰ. FY2016 1Q Financial Results Ⅰ-1. FY2016 1Q Financial Results Ⅰ-2. Overview of 1Q 2016 Topcon Corporation 2

4 FY2016 1Q <On a recovery trend> 1Q Sales Trend Net Sales (billion yen) 30 Net Sales 24.1 Net Sales w/o FX effects 26.4 Operating Income 27.6 Operating Income w/o FX effects 26.2 (billion yen) Sales declined by the strong yen but operating income remained steady FY2013 1Q 1.7 FY2014 1Q 0.7 FY2015 1Q 0.7 FY2016 1Q Practically, the sales and profits increased w/o FX effects POC: - Significant improvement in operating income - Good sales of IT Construction SIB: Strong sales and profit ECB: Growth in sales and profit POC=Positioning Company/ SIB=Smart Infrastructure Business/ ECB=Eye Care Business 2016 Topcon Corporation 3

5 FY2016 1Q Financial Results <Increased sales and profits in FY15 exchange rate> FY2015/1Q FY2016/1Q (unit: million yen) [Consolidated] Actual Actual YoY FY15 Exchange Rate Conversion Conversion YoY Net Sales 27,593 26,228-1,364 28,604 1,011 Gross Profit (Gross Profit Ratio) 14,594 (52.9%) 14,238 (54.3%) -355 SGA 13,830 13, ( Ratio) 764 (2.8%) 736 (2.8%) -27 1,159 (4.1%) 395 Non- (Expenses) -83-1,176-1, Ordinary Income ,120 1, Extraordinary Income (Loss) Income Before Income Taxes and Minority Interests ,176 Net Income Exchange Rate (Average) US$ EUR *The previously reported amount in FY2015 Q1 to Q3 is retrospectively adjusted by determining provisional accounting of business combination. Exchange loss in foreign currency A/R 1.1 billion yen Tentative valuation loss by exchange rate on June 30th ( /$) 2016 Topcon Corporation 4

6 FY2016 1Q Financial Results by Business <Profitability of Positioning is on a recovery track> Net Sales Operating Income (Operating Income Ratio) [Consolidated] FY2015/1Q Actual Actual YoY FY2016/1Q FY15 Exchange Rate Conversion Conversion Positioning 14,386 12,831-1,554 14, Smart Infrastructure 7,086 6, , Eye Care 7,887 8, ,544 1,657 Others 1, Elimination -2,969-2, , Total 27,593 26,228-1,364 28,604 1,011 Positioning Smart Infrastructure Eye Care Others Goodwill Amortization Total 561 (3.9%) 410 (5.8%) 468 (5.9%) -69 (-5.7%) 745 (5.8%) 295 (4.5%) 461 (5.2%) -123 (-15.6%) (5.8%) 418 (5.9%) 739 (7.7%) -123 (-15.2%) YoY (2.8%) 736 (2.8%) -27 1,159 (4.1%) (unit: million yen) Topcon Corporation 5

7 Domestic and Overseas Sales (YoY, at constant currency) Japan 111% (Billion yen) (Billion yen) (Billion yen) North America 98% 105% Europe FY2015/1Q FY2016/1Q FY2015/1Q FY2016/1Q FY2015/1Q 8.1 FY2016/1Q - SIB: Strong sales POC: IT Construction continues strong growth. IT Agriculture declined in YoY basis, but show signs of having bottomed out. ECB: Strong sales in screening business - ECB: Strong sales (Billion yen) 133% 107% (Billion yen) China Asia/Oceania Others 105% (Billion yen) 1.6 FY2015/1Q 2.1 FY2016/1Q 3.0 FY2015/1Q 3.2 FY2016/1Q 1.6 FY2015/1Q 1.7 FY2016/1Q - ECB: Increase in the glasses shop sales - SIB, ECB: Strong sales - POC, ECB: Strong sales - SIB: Market stagnation in Middle East POC=Positioning Company/ SIB=Smart Infrastructure Business/ ECB=Eye Care Business 2016 Topcon Corporation 6

8 FY2016 1Q Breakdown <The sales and profits increased practically w/o FX effects> [Consolidated] (unit: Billion yen) 1.5 FY2015 1Q FY2016 1Q Substantive FY2015 1Q Sales increase and decrease, Product mix Fixed cost/ Lowering COGS FX Effects FY2016 1Q 2016 Topcon Corporation 7

9 Ⅰ. FY2016 1Q Financial Results Ⅰ-1. FY2016 1Q Financial Results Ⅰ-2. Overview of 1Q 2016 Topcon Corporation 8

10 Overview Review of 1Q Financial Results Positive factors Operation is on a recovery trend Reduction of fixed cost and lowering COGS are on schedule Expecting its contribution from 2Q ー Negative factors Impacts of strong yen - Sales decrease: -2.4 B yen, Operating income decrease: -0.4 B yen Exchange rate (YoY): JPY/ USD higher, JPY/EURO higher - Non-Operating Expenses (Exchange loss in foreign currency A/R): -1.1 B yen Tentative valuation loss by exchange rate on June 30 th ( /USD) 2016 Topcon Corporation 9

11 Overview Review of 1Q Financial Results Positive Factors The demands in the U.S. and European construction markets are steadily increasing IT construction achieved strong growth due to the release of major new products (YoY 115%) ー Negative Factor IT Agriculture: the sales fell in year-on-year basis, but it seems it had bottomed out Topic Partnership with Volvo (Released on May 18) - Announced the agreement on 3D machine control solution 2016 Topcon Corporation 10

12 Overview Review of 1Q Financial Results Positive factors Sales expansion by World s smallest/ lightest new Total Station (YoY125%) Sales increase in growing India s market (YoY170%) Negative factors Deterioration of Middle East market conditions (decrease of crude oil prices/ geopolitical risk) Topics Joint development for concrete deterioration diagnosis system with Maeda Corporation - Enable to estimate amount of salt particles on concrete surface by utilizing near-infrared light - Enable to observe wide area measurement effortlessly Opened Kobe Training Center(Japan) - Following to Fukushima, 2 nd training center was opened in Kobe to promote i-construction - Planning to open 3 rd training center in Kyushu by end of this year * "i-construction" is a registered trademark of National Institute for Land and Infrastructure Management, MLIT, JAPAN Topcon Corporation 11

13 Overview of Each Business Review of 1Q Financial Results Positive factors US Strong sales of screening business (115% increased) EU Sales growth of OCT in UK, France and Spain (115% increased) China Optical shop sales grew (240% increased) ー Negative factors FDA clearance delay of 3D OCT-1 Maestro approved on 29 th July (JST) Sluggish market in Middle East and South America Topic 3D OCT-1 Maestro - US FDA clearance on 29th July (JST) Partnership with IBM (Press release: 24th June) - Creating charging business model in ophthalmology medical industry - Collecting data with ifa EMR+Analyzing big data with IBM Watson Health 2016 Topcon Corporation 12

14 Forming the partnership with IBM(NYSE: IBM) A Subscription Business Model in Eye Care business Assist on diagnosis and prescription Advantage of Vendor Neutrality: Possible to integrate any data used in the medical sites Subscription 2016 Topcon Corporation 13

15 FY2016 Full Year Plan Ⅱ Topcon Corporation 14

16 FY2015 Result Transition and FY2016 Full Year Plan Net Sales (billion yen) FY FY (billion yen) Target figure in FY2016 has been set as a-must figure (1Q+2Q) 1Q 1H Full Year Actual (1Q+2Q) 1Q 1H Full Year Plan 5.0 1Q has marked better than FY15-1Q Although facing with FX impacts, we can cover it. Exchange Rate USD EUR (JPY) 2016 Topcon Corporation 15

17 FY2016 Full Year Plan FY2015 FY2016 (unit: million yen) [Consolidated] 1H Full Year 1H Full Year Actual Actual Plan YoY(%) Plan YoY (%) Net Sales 62, ,735 61,000 97% 130, % ( Ratio) 4,466 (7.1%) 8,803 (6.7%) 3,700 (6.1%) 83% 10,500 (8.1%) 119% Ordinary Income 3,866 7,366 3,000 78% 9, % Net Income *1 2,272 4,197 1,400 62% 5, % ROE 6.9% 8% ROIC 5.4% 6% Dividends Exchange Rate *2 (Average) US$ EUR *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 July 2016 is 110/US$, 125/EUR 2016 Topcon Corporation 16

18 FY2016 Full Year Plan [Consolidated] FY2015 FY2016 (unit: million yen) 1H Full Year 1H Full Year Actual Actual Plan YoY(%) Plan YoY (%) Positioning 31,445 61,977 29,000 92% 59,000 95% Smart Infrastructure 16,231 32,989 15,500 95% 33, % Net Sales Eye Care 19,510 43,834 20, % 45, % Others 2,820 4,997 2,500 89% 5, % Elimination -7,073-13,063-6,000-13,000 Total 62, ,735 61,000 97% 130, % Positioning 1,714 (5.5%) 2,385 (3.8%) 1,500 (5.2%) 88% 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% Operating Income (Operating Income Ratio) Eye Care Others 2,058 (10.5%) 94 (3.3%) 4,850 (11.1%) 196 (3.9%) 2,000 (1%) 0 (%) 97% 5,000 (11.0%) 200 (4.0%) 103% 102% Goodwill Amortization -1,284-2,538-1,300-2,700 Total 4,466 (7.1%) 8,803 (6.7%) 3,700 (6.1%) 83% 10,500 (8.1%) 119% 2016 Topcon Corporation 17

19 Topcon for Human Life 医 食 住 2016 Topcon Corporation 18

20 Ⅲ. Appendix 2016 Topcon Corporation 19

21 Financial Results (Quarterly) 1. Consolidated 2. Positioning Net Sales (billion yen) Net Sales Net Sales (billion yen) 7.1 Net Sales Smart Infrastructure (billion yen) FY15/1Q 2Q 3Q 4Q FY16/1Q FY15/1Q 2Q 3Q 4Q FY16/1Q (billion yen) Net Sales (billion yen) Net Sales Net Sales (billion yen) 3.02 Net Sales (billion yen) (billion yen) FY15/1Q 2Q 3Q 4Q FY16/1Q 4. Eye Care FY15/1Q 2Q 3Q 4Q FY16/1Q Topcon Corporation 20

22 Financial Results and Forecast (Semiannually) 1. Consolidated 2. Positioning Net Sales (billion yen) 10 Net Sales (billion yen) Net Sales (billion yen) Net Sales FY14/1H FY14/2H FY15/1H FY15/2H FY16/1H FY16/2H Smart Infrastructure 4. Eye Care (billion yen) FY14/1H FY14/2H FY15/1H FY15/2H FY16/1H FY16/2H Net Sales (billion yen) Net Sales (billion yen) Net Sales (billion yen) 3 Net Sales (billion yen) FY14/1H FY14/2H FY15/1H FY15/2H FY16/1H FY16/2H FY14/1H FY14/2H FY15/1H FY15/2H FY16/1H FY16/2H 2016 Topcon Corporation 21

23 Cautionary Note regarding Forward-Looking Statements 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 July 29, 2016 at 16:30(UTC+9). Inquiries: Corporate Communication Div. Public, Investor Relations and Shareholder Relations Dept. TOPCON CORPORATION Tel: investor_info@topcon.co.jp URL: Topcon Corporation 23