Nikon Corp (NINOF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I took on the role of CFO this past April. Thank you for joining us today. I'll begin by reviewing our results for the fiscal year ended March 31st, 2025, and then share our outlook for the current fiscal year. For FY 2025, Nikon recorded revenue of 715.2 billion yen, operating profit of 2.4 billion yen, and profit attributable to owners of the parent of 6.1 billion yen. We faced a decline in sales for semiconductor-related businesses within precision, equipment, and components. The increase in sales from imaging products and health care and the weakening were not enough to offset this, resulting in a slight drop in overall revenue. Adding to this, we recorded a 27.2 billion yen in one-time cost, which significantly reduced our profit. Details are available on slide 28. Compared to our previous forecast, using product, precision equipment, and digital manufacturing all fell short of expectations, contributing to a notable shortfall in profits. Because of this, we revised our annual dividend downward by ¥5 to ¥50 per share, keeping it at the same level as the end of last year. The ¥30 billion share buyback was carried out as planned using funds made available through balance sheet efficiencies. The repurchase shares were canceled at the end of the fiscal year. This chart shows the changes in operating profit by segment compared to our February 6th forecast. As you can see, imaging products, precision equipment, and digital manufacturing saw major downside, and runtime costs played a significant role. Slide 5 in the yellow box highlights key financial indicators for previous fiscal year. Operating cash flow was 48.2 billion yen, marking the second consecutive year of growth. However, free cash flow came to minus 21.7 billion yen due to outlays tied to our acquisition r...