Slide 1: Financial Results for the year ended March 31, 2023
Financial Results for the year ended March 31, 2023 May 11, 2023 NIKON CORPORATION
Slide 2: Action on cost of capital and stock price; results; forecast
1. Action to implement management that is conscious of cost of capital and stock price 2. Financial results for the year ended March 31, 2023 3. Forecast for the year ending March 31, 2024 2
Slide 3: Action to implement management conscious of cost of capital and stock price
Action to implement management that is conscious of cost of capital and stock price • Improving Price-to-Book Ratio (PBR) is an important management challenge. - Announced in April 2022 an ROE target (8%+ in FY25) that is cognizant of our Cost of Equity. Analysis of - ROE was in the 7% range in FY21
Slide 4: Financial target of the Medium-Term Management Plan
Financial target of the Medium-Term Management Plan: In FY25, revenue ￥700.0B, operating margin 10%+, ROE 8%+ 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: Capital Allocation: investment in growth and shareholder returns
Capital Allocation: Promote both investment in sustained growth and strengthening of shareholder returns Future CF Strategic • Decided to acquire SLM for investments Operating CF FY22-25 Approx. 30% approx. ¥88.0B (before R&D investments) Allocate Aim for equity ratio of ¥700.0B- R&D Approx. 55%-60%
Slide 6: Shareholder Returns Policy in the Medium-Term Management Plan
Shareholder Returns Policy in the period of the Medium-Term Management Plan FY21 FY22 FY23 FY24 FY25 Medium-Term Management Plan (4 years) Up ￥5 ￥50 planned ￥60 target in year-end vs. previous forecast Year-end Dividend per share Year-end Year-end Annual Annual ￥25 ￥20 ￥25 ￥50-60 ￥60 Interim Interim
Slide 7: Officer compensation system aimed at enhancing corporate value
Officer compensation system aimed at enhancing corporate value System of officer compensation linked to business performance in effect since the first year of our Medium-Term Management Plan (FY22) The officer compensation system focuses on links to sustainable improvement in corporate value. Th
Slide 8: Sustainability Strategy aimed at enhancing corporate value
Sustainability Strategy aimed at enhancing corporate value Our corporate philosophy “Trustworthiness and Creativity” Meet society's expectations to win "Trust“ ＋ Contribute to society through "Creativity" Contribute to society (1) Creating social value Industry Quality of Life through Creativity 12
Slide 9: Agenda: Financial results for the year ended March 31, 2023
1. Action to implement management that is conscious of cost of capital and stock price 2. Financial results for the year ended March 31, 2023 3. Forecast for the year ending March 31, 2024 9
Slide 10: Summary for the year ended March 31, 2023
Summary for the year ended March 31, 2023 • YoY: Up ￥88.5B (Down ￥1.9B vs. previous forecast) - Revenue grew substantially in all segments but the Precision Equipment Business. - In the Imaging Products Business, revenue grew on higher ASP due to a weaker yen and Revenue shift to mid/high-end models
Slide 11: Financial Highlights
The year ended March 31, 2023: Financial Highlights FY2022/3 Previous Forecast FY2023/3 Change Change Amount % Amount % Actual (A) (Feb. 9) (B) Actual (C) Billions of Yen (C)-(A) (C)/(A) (C)-(B) (C)/(B) Revenue 539.6 630.0 628.1 +88.5 +16.4% -1.9 -0.3% Operating profit 49.9 55.0 54.9 +5.0 +10.0% -0.
Slide 12: Performance by Segment
The year ended March 31, 2023: Performance by Segment FY2022/3 Previous FY2023/3 Change Change Forecast Amount % Amount % Billions of Yen Actual (A) (Feb. 9) (B) Actual (C) (C)-(A) (C)/(A) (C)-(B) (C)/(B) Revenue 178.2 230.0 227.1 +48.9 +27.4% -2.9 -1.3% Imaging Products Operating profit 19.0 42.0 4
Slide 13: Imaging Products Business
The year ended March 31, 2023: Imaging Products Business 300 ¥300B Revenue Operating Profit • Revenue: Up ¥48.9B YoY 230.0 227.1 (Down ¥2.9B vs. previous forecast) 200 178.2 - Parts procurement constraints were resolved and the market for digital cameras-interchangeable lens type grew. - Nikon advan
Slide 14: Precision Equipment Business
The year ended March 31, 2023: Precision Equipment Business Revenue Operating Profit ¥300B 300 • Revenue: Down ¥8.0B YoY (Down ¥6.8B vs. previous forecast) 211.2 210.0 203.2 - FPD lithography system revenue declined on lower sales volumes 200 compared to last year, due to reduced customer capex resu
Slide 15: Healthcare Business
The year ended March 31, 2023: Healthcare Business • Revenue: Up ¥26.1B YoY Revenue Operating Profit (Up ¥6.3B vs. previous forecast) ¥120B 120 - In Life Science Solutions (biological microscopes), we made progress expanding sales of new products and in the private 99.3 sector markets mainly in Nort
Slide 16: Components Business
The year ended March 31, 2023: Components Business • Revenue: Up ¥13.1B YoY Revenue Operating profit (Up ¥0.9B vs. previous forecast) ¥70B 70 - EUV related components, optical parts and optical components for semiconductor-related products and photomask substrates for FPD contributed to increased re
Slide 17: Industrial Metrology and Others
The year ended March 31, 2023: Industrial Metrology and Others Revenue Operating Profit • Revenue: Up ¥8.3B YoY ¥50B 50 (Up ¥0.3B vs. previous forecast) 44.0 44.3 - In the Industrial Metrology Business, revenue grew YoY on solid sales of video measuring systems and X-ray and CT systems, etc. 40 - Re
Slide 18: Agenda: Forecast for the year ending March 31, 2024
1. Action to implement management that is conscious of cost of capital and stock price 2. Financial results for the year ended March 31, 2023 3. Forecast for the year ending March 31, 2024 18
Slide 19: Summary for forecast for the year ending March 31, 2024
Summary for forecast for the year ending March 31, 2024 • Company total forecast: Up ￥36.9B YoY - The Imaging Products Business revenue to grow on increased sales volumes of mirrorless Revenue cameras. - The Precision Equipment Business revenue to grow as revenue growth in the Semiconductor ￥665.0B
Slide 20: Forecast: Financial Highlights
Forecast for the year ending March 31, 2024: Financial Highlights FY2023/3 FY2024/3 Change Amount % Billions of Yen Actual (A) Forecast (B) (B)-(A) (B)/(A) Revenue 628.1 665.0 +36.9 +5.9% Operating profit 54.9 43.0 -11.9 -21.7% % vs Revenue 8.7% 6.5% Profit before tax 57.0 46.0 -11.0 -19.4% % vs Rev
Slide 21: Revision of reporting business segments
Revision of reporting business segments 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 Semiconductor Lithography BU Equipment Precision Semiconductor Equipment G
Slide 22: Forecast by Segment (New Segment)
Forecast for the year ending March 31, 2024: Forecast by Segment (New Segment) FY2022/3 FY2024/3 Change Amount % Actual (A) Forecast (B) Billions of Yen (B)-(A) (B)/(A) Revenue 227.1 240.0 +12.9 +5.7% Imaging Products Operating profit 42.2 38.0 -4.2 -10.0% Business % vs Revenue 18.6% 15.8% -2.8P Rev
Slide 23: Forecast: Imaging Products Business
Forecast for the year ending March 31, 2024: Imaging Products Business Revenue Operating Profit ¥300B 300 • Revenue: Up ¥12.9B YoY 240.0 - Forecast continued contraction in entry level models in the market 227.1 for digital camera-interchangeable lens type. 200 - Nikon will continue its focus on shi
Slide 24: Semiconductor manufacturing process and Nikon products
Semiconductor manufacturing process and Nikon products Precision Equipment Business Digital Manufacturing Business Equipment ArF Immersion Alignment Stations Automatic Macro Wafer Inspection Illumination System Industrial Microscope Video Measuring System Scanners Litho Booster Inspection Systems Sy
Slide 25: Forecast: Precision Equipment Business
Forecast for the year ending March 31, 2024: Precision Equipment Business Revenue Operating Profit • Revenue: Up ¥6.8B YoY ¥300B 300 - FPD lithography system revenue to decline on substantial decrease in sales volumes due to delays in customer capex. 203.2 210.0 - Semiconductor lithography system re
Slide 26: Forecast: Healthcare Business
Forecast for the year ending March 31, 2024: Healthcare Business Revenue Operating Profit • Revenue: Down ¥4.3B YoY 120 ¥120B - In Life Science Solutions (biological microscopes), we expect sales expansion mainly in North America and China on development of 99.3 the private sector market and strengt
Slide 27: Forecast: Components Business
Forecast for the year ending March 31, 2024: Components Business Revenue Operating profit • Revenue: Same level YoY 80 ¥80B - Strength in EUV related components. - Sales of optical parts and optical components to remain solid on 70 continued strength in demand despite adjustment phase in semiconduct
Slide 28: Forecast: Digital Manufacturing Business
Forecast for the year ending March 31, 2024: Digital Manufacturing Business Revenue Operating Profit • Revenue: ¥80B 80 - A new segment comprising the Industrial Metrology BU and the newly formed Advanced Manufacturing (ADM) BU. 70 64.0 - The Industrial Metrology Business revenue to grow on expanded
Slide 29: Digital Manufacturing Business
Digital Manufacturing Business Impairment losses of Morf3D (-￥3.9B） Digital Manufacturing Business - Reviewing the position of Morf3D in its overall ADM business strategy. Operating Profit Breakdown ‐ In addition to the existing contract processing business, planning to utilize Morf3D's capabilities
Slide 30: Reference Data
Reference Data 30
Slide 31: 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 [NIKKOR Z DX12-28mm Mirrorless Camera [Z 8] Mirrorless Camera [Z 30] [NIKKOR] Lens f/3.5-5.6 PZ VR] FPD lithography system Prec
Slide 32: Financial Highlights
The year ended March 31, 2023: Financial Highlights FY2020/3 FY2021/3 FY2022/3 FY2023/3 Billions of Yen Full Year Full Year 1H 2H Full Year 1H 2H Full Year Revenue 591.0 451.2 273.0 266.6 539.6 288.3 339.8 628.1 Operating profit 6.7 -56.2 32.1 17.8 49.9 24.4 30.5 54.9 % vs Revenue 1.1% -12.5% 11.8%
Slide 33: Performance by Segment
The year ended March 31, 2023: Performance by Segment FY2022/3 FY2023/3 Billions of Yen 1H 2H Full Year 1H 2H Full Year Imaging Products Revenue 89.2 89.0 178.2 114.5 112.6 227.1 Business Operating profit 12.5 6.5 19.0 22.2 20.0 42.2 Precision Equipment Revenue 119.2 92.0 211.2 83.3 119.9 203.2 Busi
Slide 34: Quarterly Performance by New Segment
The year ended March 31, 2023: Quarterly Performance by New Segment FY2023/3 Billions of Yen Q1 Q2 Q3 Q4 Full Year Revenue 61.2 53.3 69.9 42.7 227.1 Imaging Products Business Operating profit 13.6 8.6 19.0 1.0 42.2 Revenue 41.4 41.9 50.2 69.7 203.2 Precision Equipment Business Operating profit 3.9 2
Slide 35: Forecast: Financial Highlights
Forecast for the year ending March 31, 2024: Financial Highlights FY2023/3 FY2024/3 forecast Change (A) (B) (B)-(A) Billions of Yen 1H 2H Full Year 1H 2H Full Year 1H 2H Full Year Revenue 288.3 339.8 628.1 335.0 330.0 665.0 +46.7 -9.8 +36.9 Operating profit 24.4 30.5 54.9 20.0 23.0 43.0 -4.4 -7.5 -1
Slide 36: Forecast by New Segment
Forecast for the year ending March 31, 2024: Forecast by New Segment FY2023/3 FY2024/3 forecast Change (A) (B) (B)-(A) Billions of Yen 1H 2H Full Year 1H 2H Full Year 1H 2H Full Year Imaging Products Revenue 114.5 112.6 227.1 125.0 115.0 240.0 +10.5 +2.4 +12.9 Business Operating profit 22.2 20.0 42.
Slide 37: Financial Position
The year ended March 31, 2023: Financial Position ASSETS LIABILITIES/ EQUITY ¥1,250B 1,250 ¥1,250B 1,250 1,039.5 1,050.2 1,039.5 1,050.2 989.7 989.7 1,000 1,000 99.8 Advances received 211.3 Cash & cash 139.3 163.1 370.2 equivalents 158.0 Interest-bearing debt 351.7 153.0 750 114.2 750 147.6 Trade &
Slide 38: Capital Expenditures, Depreciation & Amortization, and Inventories
Capital Expenditures, Depreciation & Amortization, and Inventories CAPITAL EXPENDITURES, DEPRECIATION & AMORTIZATION BREAKDOWN OF INVENTORIES 80 ¥80B 300 ¥300B 277.2 70.0 Industrial Metrology 70 246.5 250 235.7 238.9 42.6 and Others 60 23.0 Components 29.9 12.0 7.9 27.0 17.8 21.3 Healthcare 200 8.7
Slide 39: Revenue Breakdown
The year ended March 31, 2023: Revenue Breakdown BY SEGMENT BY REGION Industrial Metrology Billions of yen Billions of yen and Others 7% Others Japan Components 44.3 17% 20% 9% 109.5 122.9 53.9 7% 23/3 Imaging Products Healthcare 8% 36.0 22/3 36% 16% 18% 40.8 86.2 33% 227.1 98.3 16% 14% 178.2 China
Slide 40: 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 69.0 70 62.2 Corporate, etc. 59.9 61.1 (undistributed) 60 20% 24/3 14.0 Forecast 15.0% Imaging 50 13.3% 28% 23% 23/3 Products 19.0 16.1 40 11.3% 27% 10.5% 11.1
Slide 41: Cash Flow History
Cash Flow History ¥150B 150 125.0 100 90.2 82.6 68.9 56.2 49.9 54.9 50 43.5 31.3 16.4 22.9 30.9 6.7 18.0 4.9 0.0 0 -4.8 -4.9 -0.3 -19.9 -25.3 -21.5 -21.2 -26.1 -34.8 -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 42: Imaging Products Business: Sales Units
Imaging Products Business: Sales Units SALES IN UNITS BY PRODUCT CATEGORY 1,500K Units 1,500 1,020 1,000 950 890 760 740 640 570 570 580 500 500 470 500 430 420 450 450 390 390 390 360 350 350 340 320 300 270 240 270 270 250 270 230 220240 280 230 230 220 160 150 200 210 140 180 170 170 120 110 70 8
Slide 43: 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 Units 80 80 Units 80 60 60 49 48 46 45 14 4 12 ArF immersion 40 15 40 34 35 8 27 29 29 3 ArF
Slide 44: Precision Equipment Business: Sales Units
Precision Equipment Business: Sales Units FPD LITHOGRAPHY SYSTEMS SALES IN UNITS 30 Units 30 BY GENERATION 20 19 18 17 17 4 16 3 4 13 6 12 12 7 6 10 10 9 9 3 6 9 12 7 7 1 7 2 13 6 2 6 6 6 4 5 1 1 3 7 10 3 1 2 8 3 2 8 3 5 4 7 6 6 1 4 1 2 4 5 5 3 2 1 0 3 3 0 1 1 1 1 G5/6 G7/8 G10.5 44
Slide 45: Precision Equipment Business: Sales Units
Precision Equipment Business: Sales Units SEMICONDUCTOR LITHOGRAPHY SYSTEMS SALES IN UNITS BY TECHNOLOGY（INCL. REFURBISHED） 20 19 20 units 20 18 4 1 15 14 5 4 7 12 12 1 12 11 11 2 1 1 2 2 1 10 10 9 1 9 1 8 3 8 1 8 2 8 8 2 2 3 7 3 5 2 2 2 2 1 1 1 2 1 2 4 2 5 2 2 1 12 5 11 2 11 3 1 2 1 3 8 7 6 1 6 1 7
Slide 46: Foreign Exchange Impact
Forecast for the year ending March 31, 2024: Foreign Exchange Impact Financial Impact Exchange rate from Fluctuation by 1 yen FY2024/3 Revenue Operating Profit Forecast Approx. Approx. US $ ¥130 ¥1.7billion ¥0.4billion Approx. Approx. EURO ¥140 ¥0.8billion ¥0.3billion Note: The foreign exchange impa
Slide 47: 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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