NIKON CORPORATION. Summary of Conference in Tokyo For the Financial Results for First Half of Year Ending March 31, 2006

Transcription

1 Summary of Conference in Tokyo For the Financial Results for First Half of Year Ending March 31, 2006 Forward-looking statements for earnings and other performance data contained herein are based on information currently available to the Company, and all potential risks and uncertainties are taken into account. The Company asks that investors understand that changes in conditions may cause actual performance to significantly differ from these projections. 1

2 Agenda 1. Financial Results for First half of the Year Ending March 31, Reference Data for the Year Ending March 31, Forecasts for the Year Ending March 31, Forecasts for the Year Ending March 31,

3 3 Financial Highlights for First Half of the Year Ending March 31, /9 04/9(A) Previous Results(C) Billions of Yen Forecast(B) Change (C-A) Change (C-B) Net Sales (% vs Net Sales) 100% 100% 100% Operating Income (% vs Net Sales) 2.6% 5.9% 8.3% Ordinary Income (% vs Net Sales) 1.5% 4.4% 5.9% Net Income (% vs Net Sales) 2.5% 2.2% 2.7%

4 Sales and Operating Income by Segment Sales Operating Income /9 Previous Forecast 05/ /9-0.5 Previous Forecast 05/9 Imaging Company Precision Equipment Company Instruments Company Other businesses Eliminations or corporate 4

5 Balance Sheets /9 05/3 05/9 Cash and time deposits ASSETS Notes and account receivable-trade Inventories Other current assets Fixed assets Intangible fixed asset Investments and other assets LIABILITIES AND SHAREHOLDERS EQUITY /9 05/3 05/9 Note and accounts payable-trade Short-term bank loans and current portion of bond Other current liabilities Other long-term liabilities Bonds and long-term debt Shareholders' equity 5

6 Inventory, Interest-bearing and D/E Ratio 300 Inventory Interest-bearing debt and D/E Ratio 1.26 Unit:multiple Imaging Company 04/9 05/3 05/9 Precision Equipment Company Instruments Company 0 Other businesses 04/9 05/3 05/9 Bonds Short-term bank loans and Long-term debt 6

7 Cash Flows /3 03/3 04/3 05/3 05/9 Operating activities Investing activities Free Cash flow 7

8 Precision Equipment Company 04/9 Previous Forecast 05/9 Results Net Sales () Operating Income () New IC Steppers (Refurbished) 109(34) 85(20) 79(12) LCD Steppers Steppers TOTAL Steppers(units sold) 8

9 Sales Volumes by Technology/Region (Units, New Systems Only) 79 units i-line 35 KrF 25 ArF 19 Taiwan Korea 5 5 Europe 12 Others 7 U.S. 21 Japan 29 9

10 Imaging Company 04/9 Previous Forecast 05/9 Results Net Sales () Operating Income () Single-Lens Reflex DSC Compact DSC 3,000 3,100 3,410 DSC Total 3,500 3,900 4,200 Interchangeable Lenses 740 1,150 1,180 Cameras & Lenses Units:1,000 pcs. (shipment basis ) 10

11 Instruments Company Net Sales () Operating Income () 04/9 Previous Forecast 05/9 Results Semiconductor Inspection Equipment Measuring Instruments 19% 17% Others 2% 23% Biological Microscopes 40% Industrial Microscopes 11

12 Other businesses Net Sales () Operating Income () 04/9 Previous Forecast 05/9 Results Others Custom Products Surveying Instruments 1.3 Sports Optics Eyewear Remarks: Above chart shows a breakdown of 7.6 billion yen sales amount to outside customers. 12

13 Summary for First Half of the Year Ending March 31, 2006 Income, profits mark highest-ever mid-term increase Net sales, operating income, ordinary income and net income increased to their highest-ever mid-term results. In the imaging business, Nikon sold more high-end D-SLRs, such as the D2x and D70s, than expected. Stylish C-DSCs with Nikon s innovative Facepriority AF are also moving well. In the stepper business, cost reductions resulting from simplified design began to take effect as sales of LCD steppers increased. A weakening of the yen also contributed, boosting results above previous forecast. Shareholders equity climbed above 200 billion yen, with the equity ratio improving to 32.7%. 13

14 Agenda 1. Financial Results for First half of the Year Ending March 31, Reference Data for the Year Ending March 31, Forecasts for the Year Ending March 31, Forecasts for the Year Ending March 31,

15 Exchange Rate Exchange Rate Financial Impact* 05/9 Forecast 05/9 Results Sales Operating Income US Dollar 105 yen yen Euro 130 yen yen Total *Change from foreign currency exchange rate 15

16 Capital Expenditures,R&D Expenditures, Depreciation and Amortization Capital Expenditures Depreciation and Amortization R&D Expenditures Billions of Yen 04/9 05/9 04/9 05/9 04/9 05/9 Total Precision Equipment Imaging Instruments Other

17 Selling, general and administrative expenses /9 05/9 Labor expense R&D Advertisement (Include selling expenses) Others 17

18 Stepper sales volume Steppers(units sold) Q 2Q 3Q 4Q 1Q 2Q FY2005 FY2006 New IC Steppers Refurbished IC Steppers LCD Steppers 18

19 Imaging Products Sales 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% /3 03/3 04/3 05/3 05/9 Compact DSC SLR DSC Scanner Lens F-SLR Film Compact Other 19

20 Agenda 1. Financial Results for First half of the Year Ending March 31, Reference Data for the Year Ending March 31, Forecasts for the Year Ending March 31, Forecasts for the Year Ending March 31,

21 Performance Forecast for the Year ending March 31, 2006 Billions of Yen 05/3(A) Previous Forecast(B) 06/3 forecast(c) Change (C-A) Change (C-B) Net Sales (% vs Net Sales) 100% 100% 100% Operating Income (% vs Net Sales) 4.8% 5.3% 6.4% Ordinary Income (% vs Net Sales) 2.3% 3.4% 4.1% Net Income (% vs Net Sales) 3.8% 1.9% 2.1%

22 Exchange Rate Assumption Exchange Rate Impact per 1 yen change 06/3 Forecast Net Sales Total Operating Income(2nd Half) US Dollar 105 yen Approx. 1.9 billions of yen Approx. 0.3 billions of yen Euro 130 yen Approx.1.0 billions of yen Approx0.2 billions of yen 22

23 Earning Forecast for the Year ending March 31, 2006 Billions of yen Net Sales: in the 1st half, and in the 2 nd half of the FY2006 Operating Income 45.0 Selling,general and administrative expenses Cost of sales Billions of Yen Operating Income Non-operating income Non-operating expenses Ordinary Income Special gain and loss Income taxes Net Income 05/3 1st half nd half / st half nd half st half nd half

24 Sales and Operating Income Forecast by Segment for the Year ending March 31, /3 Sales Previous Forecast 06/3 Forecast Operating Income / Previous Forecast 06/3 Forecast Imaging Company Precision Equipment Company Instruments Company Other businesses Eliminations or corporate 24

25 Capital expenditures,depreciation,r&d, Interest-bearing debt 04/3 05/3 06/3 Capital expenditures Depreciation R&D Interest-bearing debt

26 Cash Flow and D/E Ratio Forecast for the Year ending March 31, Pursuit of consolidated management with a focus on cash flow- Unit:multiple /3 03/3 04/3 05/3 06/3 Operating activities Forecast Investing activities Free Cash flow D/E Ratio

27 Forecast for Precision Equipment Company 05/3 Results 1st Half 2nd Half 06/3 Forecast 1st Half 2nd Half Net Sales () Operating Income () New IC Steppers ( Refurbished) 193(59) 109(34) 79(12) 170(40) 84(25) 91(28) LCD Steppers Steppers TOTAL Market Scale CY04/05 New IC Steppers LCD Steppers On a par with 2004 Steppers(units sold) 27

28 Sales Volumes by Technology/Region (Units, New Systems Only) 2005/3 193units 2006/3 Forecast 170units i-line 58% ArF 9% KrF 33% i-line 45% ArF 25% KrF 30% Taiwan 9% Korea 20% Other 16% Europe 8% U.S. 12% Japan 35% Taiwan 7% Korea 13% Europe 12% Other 10% U.S. 25% Japan 33% 28

29 Forecast for Imaging Company Cameras & Lenses Units:1,000 pcs. (shipment basis ) DSC Total Interchangeable Lenses Market Scale FY Net Sales () Operating Income () Digital Single-Lens Reflex Compact DSC D-SLR C-DSC 05/3 Results ,050 5,560 6,610 1,500 2,760 57,520 1st Half 2nd Half 06/3 Forecast 1st Half 2nd Half , ,000 3,410 6,400 2,560 2,990 3,500 4,200 8,000 3,110 3, ,180 2, ,020 4,000 63, /3 2006/3 Forecast LENS 14% Other 11% D-SLR 27% C-DSC 48% LENS 14% D-SLR 35% Other 5% C-DSC 46% 29

30 Forecast for Instruments Company Net Sales () Operating Income () 05/3 Results 2.8 1st Half 2nd Half 06/3 Forecast 1st Half 2nd Half Semiconductor Inspection Equipment 15% 19% Measuring Instruments Others 2% 22% Industrial Microscopes Biological Microscopes 42% 30

31 Forecast Other businesses Net Sales () Operating Income () 05/3 Result 1st Half 2nd Half 06/3 Forecast 1st Half 2nd Half Others 7.0 Custom Products Sports Optics 2.5 Eyewear 2.5 Surveying Instruments Remarks:Above chart shows a breakdown of 18.0 billion yen sales amount to outside customers. 31

32 Summary of Forecast for the Year ending March 31, 2006 A year for strong gains in operating and ordinary incomes and the launch of promising new products Sales are expected to again post a record high on a shift in demand towards highperformance machines benefiting Precision sales, and continued strong demand for digital DSCs benefiting Imaging sales. This combined with cost reductions is anticipated to push operating income up 50% and ordinary income up 100% compared to the last year. Stepper Business: At the final aperture for dry ArF (NA ), we now expect higher sales than we initially anticipated, and we expect to further strengthen our market position with the shipment of the world s first immersion model with an NA over 1.0. Meanwhile, for LCD steppers, we will begin shipping 7G and 8G equipment capable of handling the largest plate sizes in the world, and increase our advantage in multi-lens systems. Imaging Business: Sales are strong following the launch of the first compact DSCs with our Face Priority AF and Wi-Fi capabilities. Meanwhile, we plan to launch our D200 digital SLR in December, targeting high-end amateurs and professionals, and advance reviews have been extremely positive. Instruments Business : In biology applications, the company will launch Spectral Imaging Confocal Laser Scanning Microscope C1si, in a push to sharpen Nikon s edge in live-cell observation. 32

33 Agenda 1. Financial Results for First half of the Year Ending March 31, Reference Data for the Year Ending March 31, Forecasts for the Year Ending March 31, Forecasts for the Year Ending March 31,

34 Forecast for the Year ending March 31, 2007 Precision Equipment Company New IC Stepper LCD Stepper Market Scale On a par with 2005 On a par with 2005 (CY) units sold Net Sales Operating Income On a par with On a par with Increased Increased Imaging Company Compact DSC Single-Lens Reflex DSC Market Scale Units:1,000 pcs. (shipment basis )) Shipment Units 66,000-69,000 Approx. 10% up from ,000-5,500 Approx. 20% up from Net Sales Operating Income Increased Increased Instruments Company Net Sales Increased Operating Income Increased 34