Nikon Corp (NINOF) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon. This is Tokunari CFO. I would like to thank you for your precious time, despite your busy schedule, to attend our financial results briefing. I will explain the financial results for the third quarter of the year ending March 31, 2024, as well as our forecast for the full fiscal year 2024. The top half shows the summary of Q1 to Q3 cumulative results and the bottom half shows the summary of Q3 alone. From Q1 to Q3 cumulative actuals for the 9 months from April to December, year-on-year basis, though revenue increased but operating profit declined. As shown in the bottom half, as for Q3 alone, namely October 3, December, just like Q1 to Q3 cumulative basis, revenue went up, but operating profit went down year-on-year. Slide 4 shows the cumulative numbers from the first to the third quarter of the year. As shown in the yellow areas, though operating profit and profit attributable to owners or parent went down year-on-year, free cash flow improved significantly. This was driven by the improved working capital and the sale of investment securities, etc., resulting in the positive free cash flow for Q3 alone. Over the past six quarters, we continued negative free cash flow due to the M&A we had in order to expand our business operations as well as the increased inventory. We intend to conduct our business operations while keeping an eye on free cash flow. Slide 5 shows the cumulative results from Q1 to Q3 by segment. Though we enjoyed growth in revenue in all the segments except for the component business, in terms of operating profit, only the imaging products business shows the growth year-on-year. Going to page 6 and onward, I will now explain each segment Q1 to Q3 year-to-date starting with the imaging products business. First, in the emerging products...