Nikon Corp. · TSE:7731
Nikon — Q2 FY2024/3 Earnings Presentation
45 slides from Nikon's earnings presentation, Feb 9, 2023
Slide 1: Financial results for the 2nd quarter of the year ending March 31, 2024
Financial results for the 2nd quarter of the year ending March 31, 2024 November 9, 2023 NIKON CORPORATION
Slide 2: Agenda
1. Progress of the Medium-Term Management Plan 2. Financial results for the 2nd quarter of the year ending March 31, 2024 3. Forecast for the year ending March 31, 2024 2
Slide 3: Medium-Term Management Plan: Overview
Medium-Term Management Plan: Overview Source: Progress Report on Medium-Term Management Plan slide deck Substantial challenges Where we will be in 2025 Providing Products and Services optimized to meet our customer needs Direction for the entire company Evolve from Strengthen delivery of solutions i
Slide 4: Year 2: Earnings are stagnating, but strategy is progressing as planned
Year 2: Earnings are stagnating, but strategy is progressing as planned Medium-Term Management Plan (4 years) Revenue Operating profit / Profit attributable to owners of parent Note: Amounts in this statement are rounded down to the hundred millions of yen. 4
Slide 5: Strategic progress and challenges
Strategic progress and challenges Quality of life Imaging Products Rolling out mirrorless cameras with cutting-edge features (the Z 8 and the Z f) and continuing to expand the lineup of interchangeable lenses. Healthcare Expanding digital microscope lineup and drug discovery support services. Indust
Slide 6: Will revise our FY2025 targets based on results from the Plan's first 2 years
Revenue Portfolio: Will revise our FY2025 targets based on results from the Plan's first 2 years (FY2025 figures still reflect targets from our Plan released in April 2022. The revised targets will be announced in May 2024.) Operating 40% Margin Create new value Changes from FY 2022 to FY 2025 (by b
Slide 7: Agenda
1. Progress of the Medium-Term Management Plan 2. Financial results for the 2nd quarter of the year ending March 31, 2024 3. Forecast for the year ending March 31, 2024 7
Slide 8: 1H of the year ending March 31, 2024: Summary
1H of the year ending March 31, 2024: Summary • Revenue : ¥331.2B (Up ￥42.9B YoY) • Operating profit : ¥ 13.6B (Down ￥10.8B YoY) • Profit attributable to owners of parent :¥ 9.8B (Down ￥ 9.0B YoY) 1H actual • Revenues grew on strong sales in the Imaging Products Business, increased sales (YoY) volum
Slide 9: 1H: Financial Highlights
1H of the year ending March 31, 2024: Financial Highlights FY2023/3 1H Previous Forecast FY2024/3 1H Change Change Amount Amount Actual (A) (Aug. 8) (B) Actual (C) Billions of Yen (C)-(A) (C)-(B) Revenue 288.3 325.0 331.2 +42.9 +6.2 Operating profit 24.4 15.0 13.6 -10.8 -1.4 % vs Revenue 8.5% 4.6% 4
Slide 10: 1H: Performance by Segment
1H of the year ending March 31, 2024: Performance by Segment Previous Change Change FY2023/3 1H FY2024/3 1H Forecast Amount Amount Billions of Yen Actual (A) (Aug. 8) (B) Actual (C) (C)-(A) (C)-(B) Imaging Products Revenue 114.5 135.0 137.6 +23.1 +2.6 Business Operating profit 22.2 25.0 25.2 +3.0 +0
Slide 11: Q2: Financial Highlights
Q2 of the year ending March 31, 2024: Financial Highlights FY2023/3 Q2 FY2024/3 Q2 Change Billions of Yen Actual (A) Actual (B) Amount (B)-(A) % (B)/(A) Revenue 142.7 173.1 +30.4 +21.4% Operating profit 9.1 10.4 +1.3 +14.1% % vs Revenue 6.4% 6.0% -0.4P Profit before tax 9.5 10.4 +0.9 +9.6% % vs Reve
Slide 12: 1H: Imaging Products Business
1H of the year ending March 31, 2024: Imaging Products Business FY2023/3 1H Previous Forecast FY2024/3 1H Change Change Billions of Yen Actual (A) (Aug. 8) (B) Actual (C) (C)-(A) (C)-(B) Revenue 114.5 135.0 137.6 +23.1 +2.6 Operating profit 22.2 25.0 25.2 +3.0 +0.2 % vs Revenue 19.4% 18.5% 18.3% -1.
Slide 13: 1H: Precision Equipment Business
1H of the year ending March 31, 2024: Precision Equipment Business FY2023/3 1H Previous Forecast FY2024/3 1H Change Change Billions of Yen Actual (A) (Aug. 8) (B) Actual (C) (C)-(A) (C)-(B) Revenue 83.3 95.0 96.0 +12.7 +1.0 Operating profit 6.2 2.0 3.2 -3.0 +1.2 % vs Revenue 7.5% 2.1% 3.4% -4.1P +1.
Slide 14: 1H: Healthcare Business
1H of the year ending March 31, 2024: Healthcare Business FY2023/3 1H Previous Forecast FY2024/3 1H Change Change Billions of Yen Actual (A) (Aug. 8) (B) Actual (C) (C)-(A) (C)-(B) Revenue 46.6 45.0 51.2 +4.6 +6.2 Operating profit 3.6 4.0 2.7 -0.9 -1.3 % vs Revenue 7.9% 8.9% 5.4% -2.5P -3.5P YoY:
Slide 15: 1H: Components Business
1H of the year ending March 31, 2024: Components Business FY2023/3 1H Previous Forecast FY2024/3 1H Change Change Billions of Yen Actual (A) (Aug. 8) (B) Actual (C) (C)-(A) (C)-(B) Revenue 25.6 20.0 18.7 -6.9 -1.3 Operating profit 11.3 6.0 5.9 -5.4 -0.1 % vs Revenue 44.1% 30.0% 31.7% -12.4P +1.7P
Slide 16: 1H: Digital Manufacturing Business
1H of the year ending March 31, 2024: Digital Manufacturing Business FY2023/3 1H Previous Forecast FY2024/3 1H Change Change Billions of Yen Actual (A) (Aug. 8) (B) Actual (C) (C)-(A) (C)-(B) Revenue 16.2 28.0 26.1 +9.9 -1.9 Operating profit -2.8 -6.0 -9.5 -6.7 -3.5 % vs Revenue -17.7% -21.4% -36.6%
Slide 17: Agenda
1. Progress of the Medium-Term Management Plan 2. Financial results for the 2nd quarter of the year ending March 31, 2024 3. Forecast for the year ending March 31, 2024 17
Slide 18: Forecast for the year ending March 31, 2024: Summary
Forecast for the year ending March 31, 2024: Summary • Company total forecast: ¥690.0B (Revised upward ¥20.0B vs. previous forecast) Revenue - Revising upward ¥20.0B because revenue increase in the Imaging Products and the Healthcare Businesses, including FX effect, is expected to be more than reven
Slide 19: Forecast: Financial Highlights
Forecast for the year ending March 31, 2024: Financial Highlights FY2023/3 Previous Forecast New Forecast Change Change Billions of Yen Actual (A) (Aug. 8) (B) (Nov. 9) (C) (C)-(A) (C)-(B) Revenue 628.1 670.0 690.0 +61.9 +20.0 Operating profit 54.9 43.0 34.0 -20.9 -9.0 % vs Revenue 8.7% 6.4% 4.9% -3
Slide 20: Forecast by Segment
Forecast for the year ending March 31, 2024: Forecast by Segment FY2023/3 Previous Forecast New Forecast Change Change Billions of Yen Actual (A) (Aug. 8) (B) (Nov. 9) (C) (C)-(A) (C)-(B) Revenue 227.1 250.0 275.0 +47.9 +25.0 Imaging Products Operating profit 42.2 41.0 43.0 +0.8 +2.0 Business % vs R
Slide 21: Forecast: Imaging Products Business
Forecast for the year ending March 31, 2024: Imaging Products Business Revenue Operating Profit • Revenue: Up ¥25.0B vs. previous forecast ¥400B 400 (Up ¥47.9B YoY) - Growth trends in the market for digital camera-interchangeable lens 300 275.0 type are greater than expected in the previous forecast
Slide 22: Forecast: Precision Equipment Business
Forecast for the year ending March 31, 2024: Precision Equipment Business Revenue Operating Profit ¥300B 300 • Revenue: Down ¥5.0B vs. previous forecast (Down ¥3.2B YoY) 203.2 205.0 200.0 - Revising downward our forecast ¥5.0B due to the postponement of 200 ArF lithography system installations into
Slide 23: Forecast: Healthcare Business
Forecast for the year ending March 31, 2024: Healthcare Business Revenue Operating Profit • Revenue: Up ¥8.0B vs. previous forecast ¥120B 120 (Up ¥3.7B YoY) 103.0 - Revising upward our forecast by ¥8.0B to reflect strong 1H sales 99.3 and changed FX assumptions. 100 95.0 - In Life Science Solutions,
Slide 24: Forecast: Components Business
Forecast for the year ending March 31, 2024: Components Business Revenue Operating profit • Revenue: Down ¥6.0B vs. previous forecast 80 ¥80B (Down ¥6.0B YoY) 70 - Revising downward our forecast. Demand for optical parts is receding due to lower utilization rates at semiconductor device makers. In a
Slide 25: Forecast: Digital Manufacturing Business
Forecast for the year ending March 31, 2024: Digital Manufacturing Business Revenue Operating Profit • Revenue: Down ¥2.0B vs. previous forecast ¥80B 80 (Up ¥20.0B YoY) 70 64.0 - Revising downward our forecast as customers in the ADM Business 62.0 revise investment plans, while the Industrial Metrol
Slide 26: Reference Data
Reference Data 26
Slide 27: Business segments and major products
Business segments and major products Segments Description Major products Imaging Digital camera-interchangeable lens type Products Interchangeable lens Business Compact DSC Mirrorless Camera [Z 8] Mirrorless Camera [Z f] [NIKKOR] Lens [NIKKOR Z 135mm f/1.8 S Plena] FPD lithography system Precision S
Slide 28: Forecast: Financial Highlights
Forecast for the year ending March 31, 2024: Financial Highlights FY2021/3 FY2022/3 FY2023/3 FY2024/3 Forecast Billions of Yen Full Year Full Year 1H 2H Full Year 1H 2H Full Year Revenue 451.2 539.6 288.3 339.8 628.1 331.2 358.8 690.0 Operating profit -56.2 49.9 24.4 30.5 54.9 13.6 20.4 34.0 % vs Re
Slide 29: Financial Highlights (Changes from Previous Forecast)
Forecast for the year ending March 31, 2024: Financial Highlights (Changes from Previous Forecast) Previous Forecast New Forecast Change (Aug. 8) (A) (Nov. 9) (B) (B)-(A) Billions of Yen 1H 2H Full Year 1H 2H Full Year 1H 2H Full Year Revenue 325.0 345.0 670.0 331.2 358.8 690.0 +6.2 +13.8 +20.0 Oper
Slide 30: Forecast by Segment
Forecast for the year ending March 31, 2024: Forecast by Segment FY2023/3 FY2024/3 Forecast Billions of Yen 1H 2H Full Year 1H 2H Full Year Imaging Products Revenue 114.5 112.6 227.1 137.6 137.4 275.0 Business Operating profit 22.2 20.0 42.2 25.2 17.8 43.0 Precision Equipment Revenue 83.3 119.9 203.
Slide 31: Forecast by Segment (Changes from Previous Forecast)
Forecast for the year ending March 31, 2024: Forecast by Segment (Changes from Previous Forecast) Previous Forecast New Forecast Change (Aug. 8) (A) (Nov. 9) (B) (B)-(A) Billions of Yen 1H 2H Full Year 1H 2H Full Year 1H 2H Full Year Imaging Products Revenue 135.0 115.0 250.0 137.6 137.4 275.0 +2.6
Slide 32: Quarterly Performance by Segment
Q2 of the year ending March 31, 2024: Quarterly Performance by Segment FY2023/3 FY2024/3 Billions of Yen Q1 Q2 Q3 Q4 Q1 Q2 Revenue 61.2 53.3 69.9 42.7 74.4 63.2 Imaging Products Business Operating profit 13.6 8.6 19.0 1.0 15.3 9.9 Precision Equipment Revenue 41.4 41.9 50.2 69.7 37.3 58.7 Business Op
Slide 33: 1H: Financial Position
1H of the year ending March 31, 2024: Financial Position ASSET LIABILITIES/EQUITY ¥1,250B 1,250 ¥1,250B 1,250 1,094.4 1,098.8 1,094.4 1,098.8 1,050.2 1,050.2 Advances Cash & cash 144.4 98.8 1,000 176.3 1,000 99.8 received equivalents 345.4 211.3 163.8 Interest-bearing Trade & other 161.0 158.0 debt
Slide 34: Capital Expenditures, Depreciation & Amortization, and Inventories
Capital Expenditures, Depreciation & Amortization, and Inventories CAPITAL EXPENDITURES, DEPRECIATION & AMORTIZATION BREAKDOWN OF INVENTORIES 80.0 ¥80.0B 350 ¥350B 70.0 301.0 70.0 300 279.9 277.2 29.2 Others 60.0 26.9 27.3 23.5 Digital Manufacturing 250 238.9 222.6 10.8 16.9 14.3 Components 11.2 29.
Slide 35: 1H: Revenue Breakdown
1H of the year ending March 31, 2024: Revenue Breakdown BY SEGMENT BY REGION Billions of Yen Billions of Yen Digital Others Manufacturing Others Components 8% 0% Japan 6% 26.1 1.4 18% 20% 18.7 58.2 67.3 6% 1% Imaging 9% 16.2 19% 18% Healthcare 1.7 Products 25.6 23/3 24/3 54.3 50.8 15% 40% 42% China
Slide 36: R&D Expenditures
Forecast for the year ending March 31, 2024: R&D Expenditures R&D EXPENDITURES R&D EXPENDITURES BREAKDOWN Billions of Yen 80 ¥80B 20.0% 70.0 72.0 70 Corporate 62.2 59.9 61.1 (Undistributed) 60 19% 24/3 14.0 15.0% Forecast 50 13.3% 23% 23/3 26% Imaging 27% 19.0 Products 40 11.1% Digital 15.9 9% 18.8
Slide 37: Cash Flow History
Cash Flow History 150 ¥150B 125.0 100 90.2 82.6 68.9 56.2 49.9 54.9 50 43.5 31.3 22.9 30.9 6.7 16.4 18.0 4.9 0.0 0 -4.8 -4.9 -0.3 -19.9 -25.3 -21.5 -21.2 -34.8 -26.1 -50 -56.2 -56.2 -72.7 -100 -112.1 -112.1 -150 18/3 19/3 20/3 21/3 22/3 23/3 Operating Profit Cash Flows from Net cash used Net cash us
Slide 38: Imaging Products Business: Sales Units
Imaging Products Business: Sales Units SALES IN UNITS BY PRODUCT CATEGORY 1,500 1,500K Units 1,000 950 740 570 580 470 500 450 390 390 390 360 340 330 350 320 270 270 250 270 280 240 220240 280 230 220 200 210 220 170 150 170 170 140 180 160 120 0 DCIL(Digtal Camera-Interchangeable Lens Type) Interc
Slide 39: Precision Equipment Business Sales Units
Forecast for the year ending March 31, 2024: Precision Equipment Business Sales Units SEMICONDUCTOR LITHOGRAPHY FPD LITHOGRAPHY SYSTEMS SALES SYSTEMS SALES BY TECHNOLOGY BY GENERATION (INCL. REFURBISHED) 80 80 Units 80 80 Units 60 60 49 48 46 45 46 14 4 12 ArF immersion 40 15 40 34 35 11 8 27 29 29
Slide 40: Precision Equipment Business: Sales Units
Precision Equipment Business: Sales Units FPD LITHOGRAPHY SYSTEMS SALES IN UNITS BY GENERATION 30 30 Units 20 17 13 12 12 7 10 10 9 9 3 9 6 7 7 1 7 2 6 2 6 6 4 5 1 1 3 7 3 10 3 1 2 3 5 2 7 8 1 2 2 4 6 6 5 5 1 2 0 3 4 3 1 2 1 1 1 1 1 2 0 G5/6 G7/8 G10.5 40
Slide 41: Precision Equipment Business: Sales Units
Precision Equipment Business: Sales Units SEMICONDUCTOR LITHOGRAPHY SYSTEMS SALES IN UNITS BY TECHNOLOGY（INCL. REFURBISHED） 20 units 20 19 18 1 15 14 5 7 12 12 1 12 11 2 1 2 2 1 10 10 10 9 1 8 3 8 1 8 2 8 8 2 3 5 2 2 4 2 2 1 1 1 2 4 2 5 2 2 1 12 5 2 11 3 1 4 2 1 3 8 1 6 1 7 6 2 4 5 1 5 1 5 4 5 4 3 3
Slide 42: Foreign Exchange Impact
Forecast for the year ending March 31, 2024: Foreign Exchange Impact Exchange Rate Financial Impact from Fluctuation by 1 yen FY2024/3 Revenue Operating Profit Forecast for 2H 2H 2H Approx. Approx. US $ ¥140 ¥0.8billion ¥0.2billion Approx. Approx. EURO ¥150 ¥0.4billion ¥0.1billion Note: The foreign
Slide 43: Revision of reporting business segments
Revision of reporting business segments (From FY2024/3) Old Segment Business Unit (BU) Business Unit (BU) New Segment Imaging Products Imaging BU Imaging BU Imaging Products Precision FPD Lithography BU Precision FPD Lithography BU Equipment Equipment Precision Semiconductor Lithography BU Semicondu
Slide 44: Disclaimer Regarding Forecast and Projections
Disclaimer Regarding Forecast and Projections 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
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