Consolidated Financial Results for the 1st Quarter of Fiscal Year Ending March 31, 2016

Transcription

1 Consolidated Financial Results for the 1st Quarter of Fiscal Year Ending March 31, 2016 Yasuo Takeuchi Director, Senior Executive Managing Officer Head of Corporate Management Office, CFO Olympus Corporation August 6, 2015

2 Highlights 2

3 Consolidated Financial Results and Business Overview for 1Q (Apr.-Jun.) of Fiscal 2016 (Fiscal Year Ending March 31, 2016) 3

4 1Q of Fiscal 2016 (1) Consolidated Financial Results Net sales up 12% YoY, all income figures show steady increases Net income sets new 1Q high Provision of 2.4 billion recorded based on progress in discussions with U.S. DOJ with regard to Foreign Corrupt Practices Act (Billions of yen) FY2015 1Q (Apr.-Jun.) FY2016 1Q (Apr.-Jun.) YoY change YoY (%) Net sales % Operating income (% of sales) 15.1 (9.0%) 17.2 (9.2%) +2.1 (+0.2pt) +14% Ordinary income (% of sales) 11.2 (6.7%) 16.7 (8.9%) +5.5 (+2.2pt) +50% Net income (*) (% of sales) 8.1 (4.9%) 16.7 (8.9%) +8.6 (+4.0pt) +106% /US$ (yen depreciation) /Euro (yen appreciation) Impact on net sales billion Impact on operating income billion (*) Profit (loss) attributable to owners of parent 4

5 1Q of Fiscal 2016 (2) Results by Business Segment Record-breaking 1Q net sales and operating income in Medical Business drive consolidated performance improvements Higher sales and reduced SG&A expenses lead Imaging Business to record operating income on singlequarter basis for first time in 4 years (Billions of yen) Medical Scientific Solutions FY2015 1Q (Apr.-Jun.) FY2016 1Q (Apr.-Jun.) YoY change YoY (%) Net sales % Operating income % Net sales % Operating income Imaging (*) Net sales % Operating income Others (*) Net sales % Operating income Elimination and corporate Total Net sales Operating income Net sales % Operating income % (*) The new business previously included under the Imaging Business are now included in Others. Figures for FY 2015 have been restated to reflect this change. 5

6 1Q of Fiscal 2016 (3) Medical Business (Billions of yen) Endotherapy Devices Net sales Operating margin Gastrointestinal Endoscopes 67.8 Surgical Devices % 24.2 Operating income Gastrointestinal Endoscopes 77.4 Surgical Devices 44.7 Endotherapy Devices % 25.0 Apr.-Jun Apr.-Jun (YoY) Net sales:+15% Gastrointestinal Endoscopes:+14% Surgical Device:+18% Endotherapy Devices:+14% 25% 15% Operating income: 5% +3% Record-breaking 1Q net sales and operating income due to strong sales of mainstay gastrointestinal endoscopes as well as surgical endoscopes and endotherapy devices Increased outflows for strategic investments cause operating margin to decline 2 percentage points Fixed costs rise due to massive increase in number of staff centered on surgical device field (ratio of SG&A expenses to net sales increases 2 percentage points) 6

7 1Q of Fiscal 2016 (4) Scientific Solution Business (Billions of yen) Net sales 21.1 Life Science 8.7 Operating income 22.7 Life Science 9.0 (YoY) Net sales: +8% Life Science:+3% Industrial : +11% Operating income: Sales and income up in industrial field due to favorable sales of industrial microscopes and non-destructive testing equipment in Japan and Asia as result of improved market conditions Operating income recorded due to ongoing cost reductions Industrial Industrial Apr.-Jun Apr.-Jun billion Integration of sales functions improves efficiency Sales functions in Asia and Europe to be integrated in same manner as done in Americas in FY2015, improved efficiency in sales activities to be pursued 7

8 1Q of Fiscal 2016 (5) Imaging Business Net sales (Billions of Yen) 18.6 Compact 5.1 Mirrorless 11.1 Others 2.4 Operating income Compact 5.0 Mirrorless 14.0 Others Apr.-Jun Apr.-Jun (YoY) Net sales:+16% Compact : -0% Mirrorless :+26% Others :+4% Operating income: billion Net sales: + 3 billion <Mirrorless cameras> Sales up 26% YoY due to strong sales of OM-D and PEN series (sales volume up 25%) Recovery trend seen in domestic market (sales volume basis) Sales in Japan: Up 96% YoY (Sales in Europe and the United States: Up 16% YoY) <Compact cameras> Sales volume decreases (down 11% YoY) but sales unchanged YOY due to shift toward high-valueadded models Operating income: + 3 billion Higher sales (mirrorless cameras): Lower cost of sales ratio and SG&A expenses: (Of this, benefits of management resource reallocation are included) Impact of foreign exchange rates: (*) The new business previously included under the Imaging Business are now included in Others. Figures for FY 2015 have been restated to reflect this change. 8

9 1Q of Fiscal 2016 (6) Net Sales by Region Consolidated: Strong Medical Business performance drives consolidated performance, sales increases in all regions Medical Business: Favorable sales performance overseas, sales increase in all regions except Japan (Japan: Sales down due to sluggish budget execution among medical institutions during 1Q as result of revision of reimbursement etc) billion (YoY) billion +14% billion billion (YoY) +15% % % % % % % % % (*)Graphs above are the total of core three businesses (Medical, Scientific Solutions and Imaging 9

10 Consolidated Balance Sheet (End of June 2015) Equity ratio increases to 34.6%, interest-bearing debt down 4.1 billion Digital camera inventories down 1.0 billion from March 31, 2015 (Billions of yen) Current assets (Digital camera inventories) Property, plant and equipment Intangible assets Investments and other assets End Mar (23.7) End Jun (22.7) Change (-1.0) End Mar End Jun Change Current liabilities Non-current liabilities (Incl. bonds/long-term loans payable) (253.3) (254.3) +0.7 (+1.1) Net assets (Equity ratio) (32.9%) (34.6%) (+1.7pt) Total assets 1, , Total liabilities and net assets 1, , Interest-bearing debt: billion (- 4.1 billion from March 31, 2015) Net interest-bearing debt: billion( billion from March 31, 2015) 10

11 Consolidated Cash Flows (April to June 2015) FCF increased 1.6 times YoY, to approx. 20 billion, mainly due to impressive business earnings (Billions of yen) FY2015 1Q FY2016 1Q Change Net sales Operating income (%) 9.0% 9.2% +0.2pt CF from operating activities CF from investing activities CF from financing activities Cash flow Free Cash flow Cash and cash equivalents at end of year Depreciation and amortization Amortization of goodwill Capital expenditures

12 Forecast for Fiscal

13 Forecasts of Consolidated Financial Results for Fiscal 2016 Upward revision to first-half net income forecast, full-year forecast unchanged Higher sales and massive increases in all income figures forecast for first-half and full-year (Billions of yen) Fiscal H (Apr.-Sept.) YoY (%) Fiscal 2016 Full-year YoY (%) Net sales % % Operating income (% of net sales) Ordinary income (% of net sales) Net income (% of net sales) 45 (11.5%) 37 (9.5%) 28 (7.2%) +17% +25% +25% 100 (12.4%) 86 (10.6%) 56 (6.9%) +10% +18% /US$ (yen depreciation) 117 7(yen depreciation) /Euro 132 7(yen appreciation) 131 8(yen appreciation) Impact on net sales billion billion - Impact on operating income billion billion

14 Segment Forecasts for Fiscal 2016 Medical Business to drive consolidated performance (higher income) Higher income projected in all 3 core businesses (Billions of yen) Medical Scientific Solutions Fiscal H (Apr.-Sept.) YoY(%) Fiscal 2016 Full-year YoY(%) Net sales % % Operating income % % Net sales % % Operating income % % Net sales % % Imaging (*) Operating income 0-0 -% Net sales % % Others (*) Operating income % Elimination and corporate Consolidated Total Net sales % Operating income % Net sales % % Operating income % % (*) The new business previously included under the Imaging Business are now included in Others. Figures for FY 2015 have been restated to reflect this change. 14

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16 Supplementary Materials 16

17 Supplementary Materials Imaging Business 1Q YoY Difference (Billions of Yen) Fiscal Q(Apr.- Jun.) Fiscal Q(Apr.-Jun.) YoY change (Difference) Net Sales Digital SLR (mirrorless) Compact Camera * Others Gross Profit SG&A expenses Operating income (loss) (*) The new business previously included under the Imaging Business are now included in Others. Figures for FY 2015 have been restated to reflect this change. 17

18 Supplementary Materials R&D Expenditures *Excluded net sales of Information & Communication Business 18

19 Supplementary Material Depreciation and Amortization 8.3 Bil 7.8 Bil 8.7 Bil 9.0 Bil 9.6 Bil 19

20 Supplementary Materials Capital Expenditures 8.0 Bil 7.2 Bil 8.2 Bil 9.4 Bil 16.2 Bil 20

21 Supplementary Materials Sales by product (Medical) Domestic:9.3 Overseas:31.7 Domestic:4.0 Overseas: Domestic:13.1 Overseas: Domestic: Overseas:30.3 Domestic:13.0 Overseas:54.9 Domestic:5.6 Overseas:32.3 Domestic:5.3 Overseas: Domestic:5.1 Domestic: Overseas:6.4 Overseas:8.3 Domestic:12.4 Overseas:65.0 Domestic:5.4 Overseas:39.3 Domestic:5.4 Overseas: Bil Bil Bil Bil 21

22 Supplementary Materials Sales by product (Scientific Solutions) 7.3 Domestic:1.2 Overseas: Domestic:1.2 Overseas: Domestic:1.0 Overseas: Domestic:1.0 Overseas:8.0 Domestic:1.6 Overseas:8.7 Domestic:1.4 Overseas:10.1 Domestic:1.3 Overseas:11.1 Domestic:1.8 Overseas: Bil 19.9 Bil 21.1 Bil 22.7 Bil 22

23 Supplementary Materials Sales by product (Imaging) Domestic:6.2 Overseas:19.3 Domestic:4.8 Overseas:16.9 Domestic:4.4 Overseas:11.7 Domestic:6.0 Overseas:13.0 Domestic:1.1 Overseas:2.2 Domestic:1.1 Overseas:2.2 Domestic:0.5 Overseas:1.9 Domestic:0.9 Overseas: Bil 25.0 Bil 18.6 Bil 21.5 Bil (*) The new business previously included under the Imaging Business are now included in Others. Figures for FY 2015 have been restated to reflect this change. 23

24 Supplementary Materials Sales by Reign (Medical) Japan N.America Europe Asia/Oceania Others Apr.-Jun Apr.-Jun Apr.-Jun Apr.-Jun Apr.-Jun Bil 78.4 Bil Bil Bil Bil 24

25 Supplementary Materials Sales by Reign (Scientific Solutions) Bil 17.7 Bil 19.9 Bil 21.1 Bil 22.7 Bil 25

26 Supplementary Materials Sales by Reign (Imaging) Bil 28.8 Bil 25.0 Bil 18.6 Bil 21.5 Bil 26

27 Supplementary Materials Interest-bearing Debt End Dec 2012 End Mar 2013 End Jun 2013 End Sep 2013 End Dec 2013 End Mar 2014 End Jun 2014 End Sep 2014 End Dec 2014 End Mar 2015 End Jun

28 Supplementary Materials Equity Ratio 45.0% 40.0% 35.0% 30.0% 28.7% 31.8% 32.1% 33.0% 36.8% 38.6% 32.9% 34.6% 25.0% 18.9% 20.0% 15.0% 10.0% 5.0% 9.7% 15.5% 0.0% End Dec 2012 End Mar 2013 End Jun 2013 End Sep 2013 End Dec 2013 End Mar 2014 End Jun 2014 End Sep 2014 End Dec 2014 End Mar 2015 End Jun

29 This material contains forward-looking statements that reflect management s current views, plans, and expectations based on information available at the time of preparation. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, future business decisions, and other internal and external factors that may cause the Company s actual results, performance, achievements, or financial position to be materially different from any future results expressed or implied by these forward-looking statements. Additionally, this information is subject to change without notice. Accordingly, other information should be used in addition to this material when making investment decisions. Olympus Corporation assumes no responsibility for any damage resulting from the use of this material.