FY2016 Financial Results. April 28, 2017 TOPCON CORPORATION President & CEO Satoshi Hirano

Transcription

1 FY2016 Financial Results April 28, 2017 TOPCON CORPORATION President & CEO Satoshi Hirano

2 CONTENTS FY2016 Financial Results Ⅰ Ⅱ Ⅱ FY2016 Financial Results FY2017 Full Year Plan Appendix 2017 Topcon Corporation 1

3 Ⅰ. FY2016 Financial Results Ⅰ-1. FY2016 Financial Results Ⅰ-2. Overview of Each Business 2017 Topcon Corporation 2

4 FY2016 Result <Performance is V-shaped recovery trend> Net Sales (billion yen) Net Sales Net Sales FY15 Exchange Rate Conversion Exchange Rate JPY/USD JPY/EUR Operating Income JPY/USD JPY/EUR FY2013 FY2014 FY2015 FY2016 Operating Income FY15 Exchange Rate Conversion 9.6 Operating Income (billion yen) Substantially higher sales and profit growth under strong yen market conditions -Achieved announced operating income 9.5 billion yen POC: Operating income increased approx. 235% YoY Growth in IT Construction -Operating cash flow 18.2 billion yen Strong yen POC=Positioning Company 2017 Topcon Corporation 3

5 FY2016 Financial Results <Increased operating income on a YoY basis> [Consolidated] FY2015 Actual Actual YoY FY2016 FY15 Exchange Rate Conversion Conversion YoY YoY% Announced on Jan 31 st Net Sales 130, ,387-2, ,047 8, % 125,000 Gross Profit (Gross Profit Ratio) 65,642 (50.2%) 65,547 (51.1%) -95 SGA 56,839 55, Operating Income (Operating Income Ratio) Non-Operating Expenses 8,803 (6.7%) 9,551 (7.4%) ,061 (8.7%) -1,437-1, , , % 9,500 (7.6%) Ordinary Income 7,366 7, ,290 2, % 7,500 Extraordinary Income (Loss) Income (Loss) Before Income Taxes and Minority Interests 7,307 7, Net Income (Loss) 4,197 4, ,333 2, % 4,200 ROE 6.9% 7.4% ROIC 5.4% 5.5% (unit: million yen) Dividends (JPY) Exchange Rate (Average) USD EUR Topcon Corporation 4

6 FY2016 Financial Results by Business <Dynamic improvement in Positioning/Smart Infrastructure Business> (unit: million yen) Net Sales Operating Income (Operating Income Ratio) [Consolidated] FY2015 Actual Actual YoY FY2016 FY15 Exchange Rate Conversion Conversion YoY YoY% Announced on Jan 31 st Positioning 61,977 60,602-1,375 66,879 4, % 56,000 Smart Infrastructure 32,989 33, ,998 2, % 33,000 Eye Care 43,834 43, ,779 2, % 44,000 Others 4,997 3,708-1,289 3,758-1,239 75% 4,000 Elimination -13,062-12, , ,000 Total 130, ,387-2, ,047 8, % 125,000 Positioning Smart Infrastructure Eye Care Others Goodwill Amortization Total 2,385 (3.8%) 3,909 (11.8%) 4,850 (11.1%) 196 (3.9%) 5,596 (9.2%) 3,939 (11.9%) 2,598 (6.0%) 10 (0.3%) 3,211 (235%) 6,149 (9.2%) 30 4,533 (13.0%) -2,252 4,138 (8.8%) (0.3%) 3, % % % ,500 3,500 4, ,538-2, , ,500 8,803 (6.7%) 9,551 (7.4%) ,061 (8.7%) 3, % 9, Topcon Corporation 5

7 Domestic and Overseas Sales (YoY, at constant currency) Japan 108% (Billion yen) (Billion yen) (Billion yen) North America 109% Europe 102% FY2015 FY2016 FY2015 FY2016 FY FY2016 SIB: Sales increase in i-construction business POC: Growing sales in IT Construction ECB: Growing sales of Maestro POC: Strong sales in IT Construction (Billion yen) 108% 125% (Billion yen) China Asia/Oceania Others 110% (Billion yen) 6.8 FY FY FY FY FY FY2016 SIB: Strong sales of Total Station ECB: Growing sales of Exam Unit/OCT POC: Growing sales in IT Construction SIB: Growing sales in India POC=Positioning Company/ SIB=Smart Infrastructure Business/ ECB=Eye Care Business POC/ECB: Strong sales 2017 Topcon Corporation 6

8 FY2016 Operating Income Breakdown <Increased operating income on a YoY basis> (unit: Billion yen) Operating Income w/o FX effects FY2015 Sales increase and decrease, Product mix Reduction of fixed cost/ Lowering COGS FX Effects FY Topcon Corporation 7

9 Ⅰ. FY2016 Financial Results Ⅰ-1. FY2016 Financial Results Ⅰ-2. Overview of Each Business 2017 Topcon Corporation 8

10 Overview of Each Business FY2015 Actual Actual YoY FY2016 FY15 Exchange Rate Conversion Conversion YoY (unit: million yen) Announced on Jan 31st Net Sales 61,977 60,602 98% 66, % 56,000 Operating Income (Operating Income Ratio) 2,385 (3.8%) 5,596 (9.2%) 235% 6,149 (9.2%) 258% 4,500 (8.0%) Exchange Rate USD EUR Review of FY2016 Financial Results Positive factors Growth in IT Construction (120% YoY) IT Agriculture showed 3 straight quarters of positive growth on a quarterly comparison / same positive growth on a YoY comparison A great improvement in operating income (235% YoY) greatly due to the growth in IT Construction, the cost reduction and the fixed-cost reduction ー Negative factors The markets of Middle East and South America are slow 2017 Topcon Corporation 9

11 Overview of Each Business FY2015 Actual Actual YoY Review of FY2016 Financial Result FY2016 Positive Factors Sales increase in the i-construction business in Japan (YoY 160%) Sales increase in New Total Station (YoY 120%) Sales increase in India s market (YoY 130%) ー Negative Factor Sluggish market in Middle East and South America FY15 Exchange Rate Conversion Conversion Announced on Jan 31st Net Sales 32,989 33, % 34, % 33,000 Operating Income (Operating Income Ratio) Exchange Rate 3,909 (11.8%) 3,939 (11.9%) 101% 4,533 (13.0%) YoY (unit: million yen) 116% 3,500 (10.6%) USD EUR * i-construction is a registered trademark of National Institute for Land and Infrastructure Management, MLIT, Japan Topcon Corporation 10

12 Overview of Each Business FY2015 Actual Actual YoY FY2016 FY15 Exchange Rate Conversion Conversion Positive Factor Success in 3D OCT Maestro launch in USA Growth in Optometry market & OCT sales in China (YoY 130%) Reinforcement of sales network in India Hiring talented leaders for Ophthalmology EMR business Announced on Jan 31st Net Sales 43,834 43,148 98% 46, % 44,000 Operating Income (Operating Income Ratio) Exchange Rate 4,850 (11.1%) 2,598 (6.0%) 54% 4,138 (8.8%) - Negative Factor Price competition intensified due to the JPY appreciation(in EU) Competition intensified in the Japanese market Cost increase due to up-front investment(strengthen sales network, Enhancement of FDA acquisition, Hiring talented leaders ) YoY (unit: million yen) 85% 4,000 (9.1%) USD EUR Review of FY2016 Financial Results 2017 Topcon Corporation 11

13 Ⅱ. FY2017 Full Year Plan Ⅱ-1. FY2017 Full Year Plan Ⅱ-2. Strategic Plans For Each Business Ⅱ-3. Summary 2017 Topcon Corporation 12

14 FY2017 Full Year Plan FY2016 FY2017 (unit: million yen) [Consolidated] 1H Full Year 1H Full Year Actual Actual Plan YoY(%) Plan YoY (%) Net Sales FY16 Exchange Rate Conversion Operating Income (Operating Income Ratio) 3,757 FY16 Exchange Rate Conversion 57, ,387 (6.5%) 9,551 (7.4%) 60, % 131, % 61, % 134, % 4,000(6.7%) 106% 12,000(9.2%) 126% 4,400(7.2%) 117% 12,900(9.6%) 135% Ordinary Income 2,233 7,622 3, % 10, % Net Income 634 4,395 1, % 5, % ROE 7.4% 10% ROIC 5.5% 7% Dividends Exchange Rate (Average) US$ EUR Topcon Corporation 13

15 FY2017 Full Year Plan by Business [Consolidated] FY2016 FY2017 (unit: million yen) 1H Full Year 1H Full Year Actual Actual Plan YoY(%) Plan YoY (%) Positioning 27,166 60,602 29, % 61, % Smart Infrastructure 14,958 33,091 16, % 35, % Net Sales Eye Care 19,611 43,148 20, % 45, % Others 1,736 3,708 2, % 4, % Elimination -5,532-12,163-7,000-14,000 Total 57, ,387 60, % 131, % Positioning 2,472 (9.1%) 5,596 (9.2%) 2,700 (9.3%) 109% 6,500 (10.7%) 116% Smart Infrastructure 1,377 (9.2%) 3,939 (11.9%) 1,400 (8.8%) 102% 4,500 (12.9%) 114% Operating Income (Operating Income Ratio) Eye Care 1,269 (6.5%) Others -93 (-5.4%) Goodwill Amortization Total 3,757 (6.5%) Exchange Rate (Average) 2,598 (6.0%) 10 (0.3%) 1,200 (6.0%) 0 (-) 95% - 3,500 (7.8%) -1,268-2,593-1,300-2,500 9,551 (7.4%) 4,000 (6.7%) 106% 0 (-) 12,000 (9.2%) USD EUR % - 126% 2017 Topcon Corporation 14

16 Ⅱ. FY2017 Full Year Plan Ⅱ-1. FY2017 Full Year Plan Ⅱ-2. Strategic Plans For Each Business Ⅱ-3. Summary 2017 Topcon Corporation 15

17 Strategic Plans for Each Business 1. Positioning Company Focused Strategy IT Construction: 1- Sales growth by the differentiated technologies 2- Sales growth by increasing the OEM partners IT Agriculture : Utilization of the new global organization (Preparing for the future) Net Sales (billion yen) Net Sales Operating 10 Income (billion yen) Operating Income FY2015 FY2016 FY2017 Plan Topcon Corporation 16

18 IT Construction: Sales growth by the differentiated technologies Further Expansion of the OEM sales / of the Aftermarket Mast (Attached after purchase) Traditional Dozer Machine Control System World's First New Dozer System Sales Transition of IT Construction (FY ) Cables Mastless MC System 3D-MC MAX Contributor to the OEM sales increase An advantage over competitors in the aftermarket FY15 FY16 FY Topcon Corporation 17

19 IT Construction: Sales growth by increasing the OEM partners The number of machinery equipped with IT construction technology has increased dramatically at ConExpo Topcon OEM Partners:about 30 companies (Triple in 3 years) Trade Show: ConExpo 2017, the biggest show for the construction in the US, Held every 3 yrs Visitors: 130 thousand / Exhibitors: 2,800 / Venue: Las Vegas, USA 2017 Topcon Corporation 18

20 IT Agriculture: Utilization of the new global organization (Preparing for the future) NORAC (Canada) New Organization Topcon Agriculture Purposes Improvement in business efficiency (Cost reduction) Enhancement of governance Maximization of synergy effect CEO Organization restructuring of the 4 acquired companies Expanding sales immediately when the market recovers Staff Allocation and Organizational reforms completed New Global Organization Dev Sales Prod Admin Digi-Star (U.S.A.) CEO Dev Sales Prod Admin Wachendorff (Germany) CEO Dev Sales Prod Admin Headquarter (Italy) Kee Technologies (Australia) CEO Develop ment Topcon Agriculture Sales Produc tion Admini stration Dev Sales Prod Admin 2017 Topcon Corporation 19

21 Strategic Plans for Each Business 2. Smart Infrastructure Business Focused Strategy i-construction: 1 - Introduction to Diffusion phase 2 - Sales growth by expanding product lineup New Total Station sales expansion * i-construction is a registered trademark of National Institute for Land and Infrastructure Management, MLIT, Japan. Net Sales (billion yen) Net Sales Operating Income (billion yen) 6 Operating Income FY2015 FY2016 FY2017 Plan Topcon Corporation 20

22 i-construction: Introduction to Diffusion Phase Industry issues TOPCON s Mission Lack of headcounts of i-construction technicians Provide more satisfactory Education and Support Trillion JPY Market growth forecast i-construction related order public work 100% (Obligation) TOPCON s Mission Expand Training Centers Supply detailed training Kobe Jun 2016 Launched Shirakawa Sep 2014 Launched Our sales plan Domestic ICT Construction (Amount) Great Expansion 1.5 Kita Kyushu Dec 2016 Launched Kanto FY2017 Planning 1 Education Number of Users of Training Centers 年 2017 年 2018 年 2019 年 2020 年 Est. 予測 Est. 予測 Est. 予測 Est. 予測 Est. (Estimated by TOPCON) Over 2,000 trainees Great Expansion FY2015 FY2016 * i-construction is a registered trademark of National Institute for Land and Infrastructure Management, MLIT, Japan. FY15 FY16 FY17 計画 Plan 2017 Topcon Corporation 21

23 i-construction:sales growth by expanding lineup Revolution in drone surveying! World's first Drone surveying without orientation point Drone World's First 3D Scanner i-construction improves working efficiency! 3D Mapping * i-construction is a registered trademark of National Institute for Land and Infrastructure Management, MLIT, Japan Topcon Corporation 22

24 New Total Station sales expansion Increase profitability with high market share Total Stations Common platform (300 models 30 Models) High value added Total Station sales trend High-end (Units) New Total Station World's Smallest/ World's Lightest Middle class Common platform Low-end World's Lightest World's Smallest World's Fastest FY2015 FY2016 FY Topcon Corporation 23

25 Strategic Plans for Each Business 3. Eye Care Business Focused Strategy 3D OCT: 1- Sales growth of Maestro in US 2- Sales expansion by Triton(SS OCT) Cost reduction corresponding to the appreciation of the yen Promotion of EMR business for Ophthalmology Strengthen sales in high-growth Indian market Net Sales (billion yen) Net Sales Operating Income (billion yen) 6 Operating Income FY2015 FY2016 FY2017 Plan Topcon Corporation 24

26 3D OCT: Sales growth of Maestro in US Significant sales growth in the world's largest market Vision Expo East(New York) (March) One of the largest World largest optical exhibition (Visitors: Approximately 20,000 people) Approx. 4times(YoY) received order amount due to Maestro effect Significant growth FY14 FY15 FY16 FY17 Plan Total OCT sales Q ty OCT display area of Topcon booth 2017 Topcon Corporation 25

27 3D OCT: Sales expansion by Triton (SS OCT) State of the art SS OCT technology Adopted Swept Source light source Visible from Invisible!! Conventional OCT Age-Related Macular Degeneration SS OCT Triton Age-Related Macular Degeneration World's First Demo 1st SS OCT International Conference TOPCON established its own A large number of prestigious doctors all over the world attended (Co-sponsor:Novartis) Attendees : 319 Doc. from the world-wide (Eur.287, USA :17, Asia:9, Japan:4) Keynote speech by Dr. Spaide, a leading expert in retinal vitreous field Provided by Dr. Ichiro Maruko (Fukushima Medical University, Tokyo Women's Medical University) Faster, higher resolution, deeper SS OCT Triton contributes to Early Detection / Early Treatment * 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 Topcon Corporation 26

28 3D OCT: Sales expansion by Triton (SS OCT) Expand sales with state-of-the-art SS OCT and popular Maestro OCT series Coverage area R&D (University Hospital, etc..) 5years ago SS OCT Triton released Present Expanding from R&D to clinical market Clinical (University Hospital, Clinic) Maestro released Expanding from clinical to screening market Screening (Clinic, Medical Check-Up) Contribute to early detection and early treatment 2017 Topcon Corporation 27

29 Cost reduction corresponding to the appreciation of the yen Cost reduction of main products Maximize the benefits of scale by increasing sales - Common platform - Reduction of processing cost by mold conversion - Expansion of overseas procurement by utilizing yen appreciation - Automation of quality inspection Total OCT sales Q ty FY17 Plan FY20 Plan 2017 Topcon Corporation 28

30 Promotion of EMR business for Ophthalmology Established new organization Topcon Healthcare IT Solutions Active use of leader human resources General Manager Former Managing Director of Accenture IT business specialist Advisor Jim Taylor, Former CEO of Carl Zeiss Meditec, Inc. (April, 2017) Sales General Manager Former MD of Accenture Develop ment Product Planning Advisor Former Zeiss US CEO Technical Support Remote medical care system Hospital Remote medical care system EMR for Ophthalmology Medical check-up Hospital (Japan) EMR for Ophthalmology General practitioner EMR for Ophthalmology VisionVan Optical shop in abroad Private eye clinic Visiting care 2017 Topcon Corporation 29

31 Strengthen sales in high-growth Indian market Acquisition of Mehra Eyetech Pte. Ltd (1 st December, 2016) Expand our business in growing market India greatly Focus on high-end products such as OCT and ICT Business as a Topcon group company 3,000 2,500 India GDP CAGR 7% (Unit: USD M) Mumbai Head Office Sales plan in India CAGR 17% 2,000 9 branch 1,500 1, FY2015 FY2016 FY2017 FY2018 FY2020 FY2015 FY2016 FY2017 FY2018 FY Topcon Corporation 30

32 Ⅱ. FY2017 Full Year Plan Ⅱ-1. FY2017 Full Year Plan Ⅱ-2. Strategic Plans For Each Business Ⅱ-3. Summary 2017 Topcon Corporation 31

33 Summary Trends of Financial Results Annually Net Sales (billion yen) 120 Net Sales Net Sales FY15 Exchange Rate Conversion Operating Income Operating Income FY15 Exchange Rate Conversion Operating Income 25 (billion yen) Exchange Rate JPY/USD JPY/EUR JPY/USD JPY/EUR JPY/USD 115 JPY/EUR FY2015 FY2016 FY2017 Plan Topcon Corporation 32

34 Topcon for Human Life 医 食 住 2017 Topcon Corporation 33

35 Ⅲ. Appendix 2017 Topcon Corporation 34

36 Financial Results (Quarterly) Consolidated 2. Positioning Net Sales (billion yen) Net Sales 40.0 Operating Income Net Sales (billion yen) Net Sales Operating Income Operating Income (billion yen) 3.0 Net Sales (billion yen) 15.0 Net Sales Operating Income FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q Operating Income (billion yen) Net Sales (billion yen) 9.0 Net Sales Operating Income FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q Smart Infrastructure 4. Eye Care Operating Income (billion yen) Operating Income (billion yen) FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q Topcon Corporation 35

37 Financial Results and Plan (Semiannually) 1. Consolidated 2. Positioning Net Sales (billion yen) Net Sales Operating Income Operating Income (billion yen) FY15/1H FY15/2H FY16/1H FY16/2H FY17/1H FY17/2H Net Sales (billion yen) Net Sales Operating Income Operating Income (billion yen) FY15/1H FY15/2H FY16/1H FY16/2H FY17/1H FY17/2H Smart Infrastructure 4. Eye Care Net Sales (billion yen) Net Sales Operating Income Operating Income (billion yen) Net Sales (billion yen) Net Sales Operating Income Operating Income (billion yen) FY15/1H FY15/2H FY16/1H FY16/2H FY17/1H FY17/2H FY15/1H FY15/2H FY16/1H FY16/2H FY17/1H FY17/2H Topcon Corporation 36

38 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 April 28, 2017 at 16:30 (UCT+9). Inquiries: Corporate Communication Div. Investor Relations and Shareholder Relations Dept. TOPCON CORPORATION Tel: investor_info@topcon.co.jp URL: