FY2012 1Q Support Documentation - Topcon...From Reform To Enhancement ©2012 Topcon Corporation 1. Looking forward to 2Q and full year forecasts . TOPCON sales and operating income

©2012 Topcon Corporation From Reform To Enhancement

FY2012 1Q Support Documentation (*In this presentation, “FY2012”referes to the year ending March 31, 2013)

July 31, 2012 TOPCON CORPORATION

1. Summary (FY2012 1Q Results, 2Q&Full Year Forecast)

2． FY2012 1Q Results and Full Year Forecast

3． Analysis of Gain and Loss in Operating Income (YoY)

4．Current Status of “Reform” Plan

5．Current Status of “Enhancement” Plan

6．Progress in Growth Strategies by Company

7．Summary

8. Appendix: Quarterly Financial Results Semiannually Financial Results and Forecast

©2012 Topcon Corporation From Reform To Enhancement 1

1. Summary of FY2012 1Q Results

TOPCON on track to meet plan despite macro challenges

1Q results came in line with business restructuring plan

■

■

Q1 sales were slightly down YoY largely due to yen appreciation

Operating income improvement YoY despite lower sales

- Fixed-cost reduction and COGS reduction efforts have helped absorb the impact from a stronger yen

- Fixed-costs reduction : ¥0.8 billion

- COGS reduction : ¥0.6 billion

Key highlights:


1. Looking forward to 2Q and full year forecasts

TOPCON sales and operating income to accelerate in 2Q and 2H from new product launches and ongoing fixed-costs reduction and COGS reduction

20 new products set to launch in 2Q and 2H will help stimulate revenue growth Smart Infrastructure

Positioning

Cost initiatives will contribute an additional ¥5 billion to FY2012 operating income Fixed-costs reduction from personnel

Improvement from COGS reduction

Our forecasts assume FX of ¥80/USD and ¥110/EU

■ We will strive to achieve original targets by introducing additional cost saving and efficiency initiatives

Mitigating forex impacts with further reforms

■

■

■

■

■

Eye Care ■

: 4 models

: 5 models

:11 models

: ¥1.8 billion

: ¥3.2 billion

2


2. FY2012 1Q Results and Full Year Forecast

［Consolidated］ FY2011 FY2012

1Q 1Q-2Q Full Year 1Q 1Q-2Q Full Year

Actual Actual Actual Actual YoY (%)

Forecast YoY (%)

Forecast YoY (%)

Net Sales 21,713 49,577 98,834 20,539 94.6% 51,000 102.9% 108,000 109.3%

Operating Income (Loss) (Operation Income Ratio)

(910) (-4.2%)

517 (1.0%)

2,080 (2.1%)

(895) (-4.4%)

2,000 (3.9%)

386.8% 8,000 (7.4%)

384.6%

Ordinary Income (Loss) (1,166) (688) 467 (1,585) 1,400 6,800 -%

Current Term (a quarter) Net Income (Loss)

(1,155) (1,960) (3,686) (1,526) 400 3,000

ROE (10.6%) 8.8%

Dividends ¥2 ¥4 ¥2 ¥ 6

Exchange Rate

(average)

ＵＳ＄ ¥81.71 ¥79.73 ¥79.30 ¥80.40 ¥ 80 ¥ 80

ＥＵＲ ¥118.11 ¥114.09 ¥110.17 ¥103.35 ¥ 110 ¥ 110

(million yen)

* There is no correction of the assumed exchange rate for FY2012.

3


2. FY2012 1Q Results and Full Year Forecast [Consolidated] FY2011 FY2012

1Q 1Q-2Q Full Year 1Q 1Q-2Q Full Year

Actual Actual Actual Actual YoY (%) Forecast YoY (%) Forecast

YoY (%)

Net Sales

Smart Infrastructure 3,811 9,274 19,656 3,898 102.3% 12,000 129.4% 25,000 127.2%

Positioning 8,351 16,729 33,000 7,915 94.8% 18,000 107.6% 37,000 112.1%

Eye Care 7,033 15,620 32,598 6,383 90.8% 16,000 102.4% 35,000 107.4%

Others 2,517 7,952 13,579 2,341 93.0% 5,000 62.9% 11,000 81.0%

Total 21,713 49,577 98,834 20,539 94.6% 51,000 102.9% 108,000 109.3%

Operating Income

(Operating Income Ratio)

Smart Infrastructure

(325) (-8.5%)

(19) (-0.2%)

975 (5.0%)

(198) (-5.1%)

600 (5.0%)

2,500 (10.0%)

256.4%

Positioning 139 (1.7%)

528 (3.2%)

508 (1.5%)

(80) (-1.0%)

900 (5.0%)

170.5% 2,500 (6.8%)

492.1%

Eye Care (230) (-3.3%)

424 (2.7%)

1,766 (5.4%)

(397) (-6.2%)

800 (5.0%)

188.7% 3,000 (8.6%)

169.9%

Others (494) (-19.6%)

(416) (-5.2%)

(1,168) (-8.6%)

(218) (-9.3%)

(300) (-6.0%)

0 (0%)

Total (910) (-4.2%)

517 (1.0%)

2,080 (2.1%)

(895) (-4.4%)

2,000 (3.9%)

386.8% 8,000 (7.4%)

384.6%

(million yen)

4


3. Analysis of Gain and Loss in Operating Income (YoY)

5


Fixed-cost Reduction, COGS Reduction (Plan and Forecast for FY2012)

Full Year Plan Results for 1Q Full Year Forecast

2.6

3.8

6.4

2.6

3.8

6.4

0.8

0.6

1.4

（billion yen）

4. Current Status of “Reform” Plan

Fixed-cost Reduction

COGS Reduction

Total

Expansion of oversea procurement

Workforce Reduction in Domestic Groups

■ ■

■

■

Enhancement of VA/CD activity

Reform Plan Description

＜Additional plan for the rest of FY2012＞ Fixed-cost among oversea group companies will be reduced in response to the decrease in profit caused by slowdown in European market and the increase in R&D investment in the U.S.

Domestic groups significantly improved by Workforce Reduction and COGS Reduction compared to FY2011 1Q. ■

6


Launching New Products (Plan for FY2012)

5. Current Status of “Enhancement” Plan

（items）

Company FY2012

FY2012-FY2014 Forecast 1Q

Results 2Q

Forecast 2H

Forecast Full Year Forecast

Smart Infrastructure 2 1 3 6 18 Positioning 3 3 2 8 23

Eye Care 0 5 6 11 17 Total 5 9 11 25 58

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6. Progress in Growth Strategies by Company

１．Consolidated

Business circumstances by 1Q

２．Smart Infrastructure

Business circumstances by 1Q ■

Core strategies for 2Q are to: ■ Strengthen profitability by offering full line-up of Total Station (basic model, OS model,

motor drive model) and by proceeding differentiation of products with our new technology such as TSshield

Stable growth in Japan, but Chinese market shows sense of stagnation Profit increased (YoY) by implementing business reformation plan and by launching new products which realized significant cost-down

Core strategies for 2Q are to: ■ Increase investment in growing and focusing businesses for the sales growth by launching

new products

Economic downturn in European countries and weak euro were slightly affecting on sales and profit

■

Strengthen development of 3D measurement and mobile measurement products for sustaining stable revenue base

■

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6. Progress in Growth Strategies by Company

４．Eye Care

■

■

■

Launch affordable models and high-performance models of OCT in growing market aiming at expansion of sales

Expand sales of treatment products by launching new PASCAL

Stable growth in Japan and China, but slowdown in Europe Business circumstances by 1Q

Core strategies for 2Q are to:

３．Positioning

Business circumstances by 1Q

Core strategies for 2Q are to:

■

■ Launch new products targeting growing fields including Precision Agriculture and Machine Control

Stable growth in the U.S. while slowdown in Europe

Invested principally in development of new products which are planned to launch after 2Q

Accelerate the seed of business expansion ■

■

9


TOPCON is set to deliver forecasted H1 and FY2012 operating income

Fixed-costs reduction and COGS reduction are helping TOPCON withstand a strong FX headwind

TOPCON continues to develop world-leading technology and will launch several significant products this year

■

■

■

7. Summary

Thank you for your support!

TOPCON FY2012 is on track

10


3.53.8

5.5 6.8

3.9

(0.2)

1.6

(0.6)

0.3

(0.3)0

5

10

FY11/1Q FY11/2Q FY11/3Q FY11/4Q FY12/1Q(1)

0

1

2Net Sales Operating Income

8. [Appendix] Quarterly Financial Results

21.7

27.9

19.3 20.5

30.0

(0.9)

3.4

(1.8)

1.4

(0.9)

0

10

20

30

40

FY11/1Q FY11/2Q FY11/3Q FY11/4Q FY12/1Q(4)

(2)

0

2


10.0 7.98.48.4

6.2

(1.0)

0.6

(0.6)

0.40.1

0

5

10

15

FY11/1Q FY11/2Q FY11/3Q FY11/4Q FY12/1Q(1.0)

(0.5)

0.0

0.5

1.0Net Sales Operating Income

Operating Income （billion yen） Net Sales （billion yen） Operating Income （billion yen） Net Sales （billion yen）


1. Consolidated 2. Smart Infrastructure Company

4. Eye Care Company 3. Positioning Company

8.67.2

6.4

9.8

7.0

1.5

(0.4)(0.1)(0.2)

0.7

0.0

5.0

10.0

15.0

FY11/1Q FY11/2Q FY11/3Q FY11/4Q FY12/1Q(0.5)

0.0

0.5

1.0


11


19.018.016.316.715.515.8 1.6

0.9

0

0.5

(0.3)

0.5

0

5

10

15

20

10/1H 10/2H 11/1H 11/2H 12/1H 12/2H

(1)

0

1


49.7 52.8 49.6 51.057.0

49.3

6.0

2.01.6

0.5

1.8

00

20

40

60

80

10/1H 10/2H 11/1H 11/2H 12/1H 12/2H

0

2

4


10.0 10.3 9.312.0 13.0

10.4

1.9

0.6

1.0

0.3

(0.4)0

0

5

10

15

20

10/1H 10/2H 11/1H 11/2H 12/1H 12/2H

(1)

0

1


1. Consolidated 2. Smart Infrastructure Company

4. Eye Care Company 3. Positioning Company

8. [Appendix] Semiannually Financial Results and Forecast



16.019.0

14.5 15.617.016.4

(0.3)

2.2

0.8

1.3

0.40.6

0

5

10

15

20

10/1H 10/2H 11/1H 11/2H 12/1H 12/2H(0.5)

0.0

0.5

1.0

1.5

2.0


12


Inquiries: IR Affairs Corporate Communication Dept. TOPCON CORPORATION Tel: +81-3-3558-2532 E-mail: [email protected] URL: http: //global.topcon.com/invest/

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.

mailto:[email protected]

FY2012 1Q Support Documentation1.Summary of FY2012 1Q Results1. Looking forward to 2Q and full year forecasts

2.FY2012 1Q Results and Full Year Forecast2.FY2012 1Q Results and Full Year Forecast

3.Analysis of Gain and Loss in Operating Income (YoY)4. Current Status of "Reform" Plan5. Current Status of "Enhancement" Plan6.Progress in Growth Strategies by Company6.Progress in Growth Strategies by Company

7. Summary8.[Appendix] Quartery Financial Results8.[Appendix] Semiannually Financial Results and Forecast

Cautionaly Note regarding Forward-Looking Statements

Documents

FY2012 1Q Support Documentation - Topcon...From Reform To Enhancement ©2012 Topcon Corporation 1. Looking forward to 2Q and full year forecasts . TOPCON sales and operating income