NIKON CORPORATION Corporate Communications & IR Dept. Nov.1,212 Financial Results for the 2nd Quarter of the Year Ending March 31, 213 Conference in Tokyo (Nov.1, 212) NIKON CORPORATION 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.
Agenda Ⅰ. Financial Results for the First Half of the Year Ending March 31, 213 Ⅱ. Estimation for the Year Ending March 31, 213 Ⅲ.Reference Data 2
Financial Highlights for the First Half of the Year Ending March 31,213 3 As strong yen progresses in the midst of economic downturn, our overall sales and profits exceeded the forecast, marking the record sales in history. Precision Equipment Company Due to the market contraction, IC and LCD steppers/scanners largely decreased the sales volume compared to the 1 st half of previous fiscal year. Operating income exceeded the forecast thanks to implementation of profitability improvement measures and expense reduction efforts. Imaging Company In comparison with the 1 st half of previous year, the sales volume grew in all the product groups more than the market growth rate. Both sales and operating income exceeded the forecast. Second quarter secured solid profitability (1.3% in Q1 11.6% in Q2). Instruments Company Postponed government spending and suppressed investments affected the 1 st half year s sales that ended with slight reduction. Interim dividend 19 yen
Financial Highlights for the First Half of the Year Ending March 31,213 211/9 (A) Previous Forecast as of Aug. 8 (B) 212/9 (C) (C)-(A) (C)-(B) Net Sales 486.3 485. 497.2 + 1.9 +12.2 Operating 61.1 Income 12.6% Ordinary 65.1 Income 13.4% Net Income 5.4 1.4% 34. 7.% 37. 7.6% 27. 5.6% 37.1 7.5% 39.5 7.9% 32. 6.4% - 24. + 3.1-25.6 + 2.5-18.4 + 5. FCF 5.3 - -.6-5.9 - Exchange Rate US$ EURO 8 yen 8 yen 79 yen 114 yen 11 yen 11 yen * Amounts in this statement are rounded down to the hundred million. Impact on Net Sales: - 19.3-3. Impact on Op. Income: - 12.6 -.8 Sales and profits forecasts were exceeded thanks to better-than-expected Imaging Company s performance. 4
Financial Highlights for the 2 nd Quarter of the Year Ending March 31,213 5 211/9 (A) Previous Forecast as of Aug. 8 (B) 212/9 (C) (C)-(A) (C)-(B) Net Sales 24.7 225.6 237.8-2.9 + 12.2 Operating Income 24.2 1.% Ordinary Income 27.4 11.4% Net Income 19.7 Exchange Rate US$ EURO 8.2% 78yen 11yen 1.7 4.7% 13.6 6.% 11.3 5.% 8yen 1yen 13.8 16.1 16.3 5.8% 6.8% 6.9% 79yen 98yen -1.4 +3.1-11.3 +2.5-3.4 +5. Impact on Net Sales: - 6.9-3. Impact on Op. Income: - 7.9 -.8 In the difficult business conditions whereas electronics-related investment was reduced and Euro was weak, sales and profit decreased on previous Q2. Imaging Company absorbed strong yen, posting growth of sales and profit by 2% and 4% respectively.
6 Precision Equipment Company: 1 st Half 211/9 (A) Previous Forecast as of Aug. 8 (B) 212/9 (C) (C)-(A) (C)-(B) Net Sales 124.8 85. 8.4-44.4-4.6 Operating Income 23.2 18.6% 6. 7.1% 7.2 9.% - 16. +1.2 IC Steppers & Scanners New / Refurbished LCD Steppers & Scanners 26/16 units 12/9units 9/5units - 17/- 11units - 3/- 4units 48units 28units 25units - 23units - 3units Net sales could not reach the forecast because the expected number of units could not be sold due to customers investment postponement. But, profit structure improvement and expense reduction effort contributed to higher operating income than forecasted.
Precision Equipment Company: 1 st Half 45 Units IC Steppers & Scanners Sales by Technology *Including refurbished systems 42 5 Units 48 LCD Steppers & Scanners Sales by Generation 4 35 8 4 14 3 25 2 15 1 5 16 14 6 18 1 1 6 211/9 212/9 ArF immersion ArF KrF ⅰ-line 3 2 1 25 15 21 19 4 211/9 212/9 7G~ 5G/6G 4G 7
Imaging Company: 1 st Half Cameras & Lenses (1, of units sold) 211/9 (A) Previous Forecast as of Aug. 8 (B) 212/9 (C) (C)-(A) (C)-(B) Net Sales 324.5 36. 381. + 56.5 + 21. Operating Income 47.4 Digital camera Interchangeable 14.6% 37. 1.3% 41.8 11.% - 5.6 +4.8 Lens Type 2,73 3,4 3,45 + 72 + 5 Interchangeable Lenses 3,93 4,9 4,77 + 84-13 Compact DSC 7,86 8,4 8,26 + 4-14 Sales volume increased on previous 1 st half: 26% and 21% more units were sold for digital camera interchangeable lens type and interchangeable lenses. Compact DSC posted 5% hike in spite of shrinking market. Sales in Europe and US were steadier in spite of our concerns, our product mix worked out well to exceed both sales and operating income forecasts. After absorbing the impact by strong yen, net sales marked the record high. 8
9 Instruments Company : 1 st Half 211/9 (A) Previous Forecast as of Aug. 8 (B) 212/9 (C) (C)-(A) (C)-(B) Net Sales 24.6 24. 23.7 -.9 -.3 Operating Income - 2.3-2.5-2.9 -.6 -.4 -% -% -% 3 Net sales slightly decreased on previous 1 st half because restrained investment for semiconductor equipment affected the industrial instruments performance and yen remained strong. 15 58% 55% Industrial instruments 42% 45% 211/9 212/9 Bioscience
Balance Sheet : 1st Half 9 6 175.7 132.4 116.7 Assets 865.9 872. 86.2 137.5 119. 124.1 Cash & Time Deposit Notes & accounts Receivabletrade 9 6 48.6% Liabilities & Net assets 5.3% 445. 426.6 Capital ratio 51.% 865.9 86.2 872. 426.6 6% 5% 4% Total liabilities 265.1 263. 35. Inventories 3 66. 76.6 65. Other current assets 3 42.9 433.6 445.4 Total Net assets 242.4 25.7 258.9 Fixed assets 211/9 212/3 212/9 211/9 212/3 212/9 1
Balance Sheet : 1st Half 35 3 Inventories 265.1 263. 25 2.5 22.5 16.1 16.6 35. 22.3 18.3 Other Instruments Company 2 15 Cash & Time Deposit and Interest-bearing Debt 2 15 1 5 138.2 125.4 9.3 98.5 135.6 128.8 Precision Equipment Company Imaging Company 1 5 175.7 46.5 132.4 46.3 Cash & Time Deposit 119. 46. 4. 4. 4. Debt (including lease loan) Bonds 211/9 212/3 212/9 211/9 212/3 212/9 11
Agenda Ⅰ. Financial Results for the First Half of the Year Ending March 31, 213 Ⅱ. Estimation for the Year Ending March 31, 213 Ⅲ.Reference Data 12
Summary of Estimation for the Year Ending March 31, 213 13 Sudden deceleration of semiconductor equipment investment forces to downgrade the forecasts of sales, operating income, and ordinary income of the overall company. Precision Equipment Company The number of IC steppers/scanners sold is expected to largely decrease. But, the profitability will be secured by expense reduction measures and profit structure improvement including leadtime reduction. Imaging Company The 2 nd half forecast is unchanged: however, the better-than-expected performance in the 1 st year upgrades the yearly forecast. Instruments Company Bioscience field is affected by the contraction/postponement of government spending in Japan and other countries and the industrial instruments field is also impacted by restrained equipment investment. The forecast for the fiscal year is downgraded. Estimated annual dividend per share: 41 yen (unchanged)
Performance Estimation for the Year Ending March 31, 213 12/3 Actual (A) Previous est. (B) (Aug. 8) New est. (C) Change (C)-(A) Change (C)-(B) Net Sales 918.6 486.3 432.3 Operating Income 8. 8.7% Ordinary Income 89.3 9.7% Net Income 59.3 6.5% 61.1 18.9 65.1 24.2 5.4 8.9 12. 485. 535. 85. 8.3% 9. 8.8% 6. 5.9% 34. 51. 37. 53. 27. 33. 11. 497.2 512.8 72. 7.1% 75. 7.4% 6. 5.9% 37.1 34.9 39.5 35.5 +91.4-1. +12.2-22.2-8. -13. -14.3-15. 32. 28. +.7 ± FCF - 34. 3. 2. + 54. - 1. Exchange Rate US$ EURO 79yen 19yen 8yen 78yen 114yen 14yen 8yen 11yen 8yen 1yen 79yen 8yen 11yen 1yen Imaging Company forecast is upgraded. But, Precision Equipment Company downgrades its forecast due to expected reduction of IC steppers/scanners sold. For overall company forecasts, net sales, operating income, and ordinary income are all lowered. +3.1-16.1 +2.5-17.5 +5. -5. 14
Estimation for Precision Equipment Company 12/3 Actual Previous est. (Aug. 8) New est. Net Sales 248.1 124.8 123.3 21. 85. 125. 185. 8.4 14.6 Operating Income 42.7 17.2% 23.2 19.5 25. 11.9% 6. 19. 11. 5.9% 7.2 3.8 IC Steppers & Scanners New / Refurbished 55/29units 26/16 29/13 46/2units 12/ 9 34/11 28/17units 9/ 5 19/12 LCD Steppers & Scanners 86units 48 38 42units 28 14 42units 25 17 IC Steppers & Scanners Market Scale CY11/12 311units Approx. 24 units Approx. 23units LCD Steppers & Scanners Market Scale CY11/12 19units Approx. 6 units Approx. 6units The forecasted number of IC steppers/scanners sold is forced to lower substantially by sudden deceleration of equipment investment. However, profit will be maintained through improvement of profit structure and expense reduction measures. 15
Estimation for Precision Equipment Company Units 9 84 IC Steppers & Scanners Sales by Technology *Including refurbished systems 9 Units 86 LCD Steppers & Scanners Sales by Generation 8 7 6 5 4 3 2 1 18 3 28 35 66 2 1 9 27 45 15 8 5 17 12/3 Actual Previous est. New est. ArF immersion ArF KrF ⅰ-line 8 7 6 5 4 3 2 1 17 32 42 42 2 1 37 34 37 6 4 12/3 Actual Previous est. New est. 7G~ 5G/6G 4G 16
Estimation for Imaging Company Cameras & Lenses (1, of units sold) 12/3 Actual Net Sales 587.1 Operating Income Digital camera Interchangeable Lens Type 53.9 9.2% 4,74 Interchangeable Lens 7,13 Compact DSC 17,37 Previous est. (Aug. 8) 324.5 262.6 72. 47.4 6.5 75. 1.4% 2,73 2,1 7, 3,93 3,2 1, 7,86 9,51 18, New est. 36. 36. 74. 37. 38. 8. 1.8% 3,4 3,6 7,1 4,9 5,1 1, 8,4 9,6 17, D-CIL Market Scale 16,33 19, 19, IL Market Scale 26,41 31, 31, C-DSC Market Scale 99,33 95, 8, 381. 359. 41.8 38.2 3,45 3,65 4,77 5,23 8,26 8,74 Although the camera market in the 2 nd half is unpredictable as the economy is slowing down worldwidely including emerging nations, our products strong marketability helps upgrading the sales forecast of digital camera interchangeable lens type by 1, units. 17
Estimation for Instruments Company 18 12/3 Actual Previous est. (Aug. 8) New est. Net Sales 56. 24.6 31.4 61. 24. 37. 57. 23.7 33.3 Operating Income - 3.1 -% - 2.3 -.8-1. -% -2.5 1.5-3. -% -2.9 -.1 75 6 As the business environment changes in the 2 nd half, such as delayed execution of Japanese government spending and sudden deceleration of semiconductor equipment investment, the yearly forecast is downgraded. 45 3 15 53% 53% 51% 47% 47% 49% 12/3 Actual Previous est. New est. Industrial instruments Bioscience
Estimation for Capital Expenditure, Depreciation and R&D 7 6 5 4 43.4 [Capital Expenditure & Depreciation] Capital Expenditure Depreciation Investment for equipment replacement and building repair due to Thai floods: 13B yen for FY12/3 13B yen for FY13/3(est.) 37.5 29.7 55.9 6. 8 7 6 5 4 R&D Ratio of R&D 61.4 6.2 6.7 [R&D] 68.7 76. 1.% 9.% 8.% 3 2 1 32.9 35.9 34. 32.5 4. 3 2 1 7.% 7.7% 6.8% 7.5% 7.5% 7.% 6.% 9/3 1/3 11/3 12/3 13/3 Est. 9/3 1/3 11/3 12/3 13/3 Est. 5.% 19
Agenda Ⅰ. Financial Results for the First Half of the Year Ending March 31, 213 Ⅱ. Estimation for the Year Ending March 31, 213 Ⅲ.Reference Data 2
21 Exchange Rate 13/3 Estimation Exchange Rate Financial Impact from Fluctuation by 1 yen 13/3 Forecast for Net Sales Operating Income US $ 8yen Approx.3.4 billion yen Approx..2 billion yen EURO 1yen Approx.1.2 billion yen Approx..7 billion yen
Quarterly Net Sales by Segment 3 2 6. 13.2 4.4 7.1 13. 61.4 6.6 5.7 6.6 11.1 13.4 2.2 61.6 63.1 66.4 5.7 9.2 13.2 18.1 58.8 64.4 6.1 1.8 52.2 5.9 12.9 28.2 1 133. 172.1 142.3 167. 157.4 137.4 125.1 19.1 19.9 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 211/3 212/3 213/3 Imaging Company Precision Equipment Company Instruments Company Other Business * Amounts in this statement are rounded down to the hundred million: the sum of breakdown values may not match the total. 22
Quarterly Operating Income by Segment 5 4 3 2 1-1 1.1 8.3-4.1-1.5.3 1.6.7.9 1.2.7 1.1 1.2.5 12.6 3.3 4.1 2.2 31.7.8.3 19.6 22.2 15.6 14.3 15.6 8.8 1.5-1.9 3.7 2.7-1.6 -.4-1. -2.4-3. -4.3-4.4-4.3-5.2-5. -.5-5.6-2 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 211/3 212/3 213/3 Imaging Company Precision Equipment Company Instruments Company Other Business Corporate Expenses * Amounts in this statement are rounded down to the hundred million: the sum of breakdown values may not match the total. 23