financial results for the 3rd quarter of the year …...financial results for the 3rd quarter of the...

Financial Results for the 3rd Quarter of the Year Ending March 31, 2010

株式会社ニコン2006年月5月15日

1

NIKON CORPORATIONCorporate Communications & IR Dept.

Feb. 4th ,2010

Conference in Tokyo (Feb. 4th, 2010)

NIKON CORPORATIONForward-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 that changes in conditions may cause actual performance to significantly differ from these projections.

Agenda

Ⅰ. Financial Results for the 3rd Quarterof the Year Ending March 31, 2010

Ⅱ. Estimation for the Year EndingMarch 31, 2010

Ⅲ. Reference Data

2

Net SalesNet Sales

Operating IncomeOperating Income

Ordinary IncomeOrdinary Income

Net IncomeNet Income

Financial Highlights for the 3rd Quarter of the Year Ending March 31,2010

Exchange：US$Rate EUROExchange：US$Rate EURO

53.27.8%

7.6%

4.5%

103151

3

09/3 (A)3Ｑs3Ｑ

10/3 (B) (B) – (A)3Ｑs3Ｑ 3Ｑs3Ｑ

54.8

31.3

700.7

0.10.4%

0.0%

-%

0.8

- 2.3

213.6 + 9.8

+ 2.6

+ 3.6

+ 2.3

- 109.2

- 70.9

- 71.8

- 48.9

Though 3Qs result was in red due to the large deficit recorded in 1H, 3Q result turned to the black thanks to the solid performance of the Imaging business. Net Sales and all Incomes increased compared to the previous 3Q.

- 18.6- %

- %

- %

94133

- 16.1

- 17.6

591.5

3.71.5%

1.7%

-%

3.4

0

223.4

90133

% vs Net Sales

% vs Net Sales

% vs Net Sales

Billions of yen

Net Sales: - 58.0

Op. Income: - 26.0

Net Sales: - 9.0

Op. Income: 0.0

Impact on Impact on

12796

Net SalesNet Sales


IC Steppers & Scanners

New / Refurbished(units sold)



LCD Steppers &Scanners

(units sold)


(units sold)- 18

5.4%

09/3 (A)3Ｑs3Ｑ

10/3 (B)3Ｑs3Ｑ

(B) - (A)3Ｑs3Ｑ

Precision Equipment Company: 3rd Quarter

8/4 40/14

11 48 + 3

- 16/- 9- 2/- 3

- 3.5 8.6 - 5.7 - 61.8-%

41.0 158.2 - 10.1 - 61.0

Compared to the previous 3Q, sales volume of IC Steppers & Scanners declined while that of LCD Steppers & Scanners recorded increase. Deterioration of product mix led to decline of net sales and increase of operating loss.

4

- %

6/1 24/5

14 30

- 9.2 - 53.2-%

30.9 97.2

% vs Net Sales

Billions of yen

Net SalesNet Sales


+ 70

+ 250

9.8%

09/3 (A)3Ｑs3Ｑ

10/3 (B)3Ｑs3Ｑ

(B) – (A)3Ｑs3Ｑ

Imaging Company: 3rd Quarter

Single-Lens ReflexDSC

(1,000 of units sold)



InterchangeableLenses




Compact DSC(1,000 of units sold)

Compact DSC(1,000 of units sold) + 690

1,200

1,750

4,080

2,850

4,200

9,220

+ 160

+ 250

+ 620

17.4 44.0 + 13.4 - 2.010.0%

174.8 450.1 + 17.9 - 44.0

Maintained solid sales. Achieved of highest ever sales volume of SLR-DSC, I/L and C-DSC for a single quarter period.

5

9.3%

1,040

1,500

3,460

2,780

3,950

8,530

4.0 46.02.5%

156.9 494.1

% vs Net Sales

Billions of yen

Instruments Company : 3rd Quarter

- 4.6Net SalesNet Sales

Operating IncomeOperating Income-%

09/3 (A)3Ｑs3Ｑ

10/3 (B)3Ｑs3Ｑ

(B) – (A)3Ｑs3Ｑ

- 5.7 - 8.3 - 5.1 - 6.5-%

11.8 29.6 + 0.8

Improved profitability of existing business including Industrial Equipment business, compared to the previous 3Q. Increased deficit because of integration expense, etc. for consolidation of Nikon Metrology NV (former Metris NV).

6

-%

- 0.6 - 1.8-%

11.0 34.2

% vs Net Sales

Billions of yen

Other Business : 3rd Quarter

7

Net SalesNet Sales

Operating IncomeOperating Income8.9%

09/3 (A)3Ｑs3Ｑ

10/3 (B)3Ｑs3Ｑ

(B) - (A)3Ｑs3Ｑ

0.8 1.3 - - 1.013.6%

+0.45.9 14.6 + 1.3

16.2%

0.8 2.317.4%

4.6 14.2

% vs Net Sales

Billions of yen

364.4 363.3

370.7 407.8 420.4

379.1

0

300

600

900

230.9 256.4 250.1

52.1 54.8 54.4

265.2 240.4 226.6

121.2 132.8 150.0

87.9 102.680.4

0

300

600

900

Asset Liabilities & Net Assets

09/3

Fixed assetsOther current assets

InventoriesNotes & accountsReceivable-trade

Cash & time deposit Total LiabilitiesTotal Net Assets

46.3%

50.5%

47.2% 45%

50%

55%

Ratio of equity capital

8

749.8749.8

09/9

772.2 772.2

Balance Sheet : 3rd Quarter

09/12

Billions of yen Billions of yen

783.7 783.7

09/3 09/9 09/12

9

Summary for the 3rd Quarter of the Year Ending March 31, 2010

3Qs result stayed in deficit in Operating, Ordinary and Net Incomes due to disposal and write-down of inventory of Precision Equipment business recorded in 2Q.

3Q result turned to the black and showed higher recovery than our estimation thanks to solid performance of the Imaging business.

- Precision Equipment Company:Recorded Operating loss due to sales reduction and deterioration of product mix.

- Imaging Company:Maintained solid sales performance in all of SLR-DSC, I/L and C-DSC.Achieved higher Net Sales and Operating Income compared to the previous 3Q.Increased in both Net Sales and Operating Income compared to the previous 3Qs with negative impact of Yen appreciation excluded.

- Instruments Company:Increased in deficit due to the stagnant market of Industrial Equipment business as well as the expense of Nikon Metrology NV consolidation in spite of steady BiologicalMicroscope business.

Agenda



Ⅲ. Reference Data

10

Performance Estimation for the Year Ending March 31, 2010

11

879.7 - 109.7

5.5%

5.4%

3.2%

Net SalesNet Sales


Ordinary IncomeOrdinary Income

Net IncomeNet Income

Exchange：US$Rate EURO Exchange：US$Rate EURO

101144

28.1 - 45.1

47.7 - 66.7

48.2 - 64.2

760.0

-%

-%

-%- 21.0

- 24.0

-18.0

09/3

(A)3Qs4Q

Previous est.

as of Nov.5 2009(B)

New est.

( C )Change

( C ) – (A)

700.7179.054.8- 6.6

53.2-5.5

31.3- 3.2

368.1391.9

- 19.51.5

+10.0

+ 4.0

+ 5.0

+ 2.0

Basing on 3Q result, Net Sales and Incomes are revised upward. All Incomes in 2H will move into the black. This will lead to turnaround in the black in the coming fiscal year.

10394

151122

93132

9690

133130

- 22.3- 1.7

- 17.7- 3.3

770.0

-%

-%

- 17.0

- 19.0

-16.0

591.5178.5

- 16.10.1

93132

9490

133130

- 18.6- 0.4

-17.60.6-%

Billions of yen

1H2H

3Qs4Q

Change

( C ) – (B)

% vs Net Sales

% vs Net Sales

% vs Net Sales

Estimation for Precision Equipment Company

12

09/3

Net SalesNet Sales







(units sold)


(units sold)

Market Scale CY08/09IC Steppers & Scanners

(units sold)

Market Scale CY08/09IC Steppers & Scanners

(units sold)

3Qs4Q

Previous est.as of Nov.5 2009

1H2H New. Est. 3Qs

4Q

Market Scale CY08/09LCD Steppers & Scanners

(TFT-array Only)(units sold)

Market Scale CY08/09LCD Steppers & Scanners

(TFT-array Only)(units sold)

140.0

- 58.0

33/11

44

97.242.8

- 53.2- 4.824/5

9/63014

-%

105

Approx.70

140.0

- 58.0

33/13

44

66.373.7

- 44.0- 14.0

18/415/9

1628

-%

Approx.100

Approx.70

No change in estimated Net Sales and Incomes. Expecting sale of an “NSR-S620”, cutting-edge ArF immersion tool in February. Acquired firm order of LCD Scanners for China.

219.9

8.0

61/17

65

158.261.7

8.6- 0.6

40/1421/ 3

4817

3.6%

296

Approx.110

% vs Net Sales

Billions of yen

LCD Steppers & Scanners by Generation

20

3 3

10

1 1

16

15 15

14

14

14

1

0

20

40

60

80

i-line

KrF

ArF

ArFimmersion

EUVL

09/3 New est.

1621 21

22

19 19

4

27

4

0

10

20

30

40

50

60

70

~4G

5G/6G

7G~

UnitsUnits

Estimation for Precision Equipment Company

44

65

33

61

Previous est.

33

44

13

IC Steppers & ScannersSales by Technology

09/3 New est.Previous est.

Estimation for Imaging Company

14

Net SalesNet Sales








Market ScaleSLR-DSC


Market ScaleSLR-DSC


Market ScaleInterchangeable

Lenses(1,000 of units sold

Market ScaleInterchangeable

Lenses(1,000 of units sold





Market ScaleC-DSC


Market ScaleC-DSC


450.1109.9

44.06.0

2,850700

9,2202,280

4,200950

8.9%

560.0

50.0

3,550

11,500

26.523.5

1,6601,890

5,1306,370

5,150 2,4502,700

8.9%

10,000

98,00016,000

275.3284.7

09/309/3 3Qs4Q

3Qs4Q

1H2H

1H2H New est.New est. 3Qs

4Q3Qs4Q

Full year estimation unchanged in consideration of currency exchange risk and severe competitive environment while sales started steadily in 4Q.

596.5

40.0

3,420

10,330

494.1102.4

46.0- 6.0

2,780640

8,5301,810

3,950920

6.7%

9,130

103,69014,800

4,870

% vs Net Sales

Previous est.as of Nov.5 2009Billions of yen

560.0

50.0

3,550

11,500

5,150

10,000

98,00016,000

0

100

200

300

400

500

600

0

100

200

300

400

500

600

09/3

C-DSC

SLR-DSC

IL

Other

NewEst.

Japan

Americas

Europe

Asia

Estimation for Imaging Company

41%

22%

12%

25%

18%

36%

32%

14%

40%

23%

10%

27%

PreviousEst.

22%

34%

32%

12%

15

40%

23%

10%

27%

22%

34%

32%

12%

Sales value by Products Sales value by Region

Billions of yen Billions of yen

09/3 NewEst.

PreviousEst.

Estimation for Instruments Company

16

09/309/3

Net SalesNet Sales


3Ｑs4Q

3Ｑs4Q

Previous est.as of Nov.5

2009

Previous est.as of Nov.5

20091H2H

1H2H New est.New est. 3Qs

4Q3Qs4Q

44.6

- 2.7

34.210.4- 1.8- 0.9

- %

45.0

- 10.0

29.615.4

- 8.3- 1.7-%

A sign of recovery of Industrial Equipment business is appearing in some regions.

Estimated Operating Income is revised upward with further cost reduction.

45.017.827.2- 2.6- 7.9

-%- 10.5

BiologicalMicroscopes

IndustrialMicroscopes

Semiconductor Inspection Equipment

0

10

20

30

40

50

57%

19%

18%

6%

64%

14%

20%

2%

64%

15%

18%

3%MeasuringInstruments

% vs Net Sales

Billions of yen

Billions of yen

09/3NewEst.

PreviousEst.

Estimation for Capital Expenditure, Depreciation and R&D

25.8

30.4

39.8 41.043.5

35.032.9

25.722.6

20.8

0

5

10

15

20

25

30

35

40

45

50 CapitalExpenditureDepreciation

37.1

47.2

58.461.5

59.0

7.0

6.1

5.7

5.1

7.7

0

10

20

30

40

50

60

70

5%

6%

7%

8%

9%

10%R&D

R&D ratio of Sales

06/3 07/3 06/3 07/308/3 08/309/3 09/310/3est.

10/3est.

3.52.0

Financial Impact from Accounting Standard for Lease Transactions

18

[R&D][Capital Expenditure &DepreciationBillions of yen

* 09/3 & 10/3: Include the amount of acquisition of Lease asset by change of Accounting Standard for Lease Transactions09/3: Capital Expenditure 3.5 / Depreciation 3.0

10/3: Capital Expenditure2.0 / Depreciation 3.0 (Billions of yen)

Billions of yen

Estimation for Cash Flows

63.7

83.2

120.8

10.1

-22.4 -21.9

-49.8 -44.5

41.3

61.371.0

-34.4

-60

-40

-20

0

20

40

60

80

100

120

140

10.0

06/3 07/3 08/3 09/3 10/3est.

19

Billions of yen

Investing Activities Free Cash FlowsOperating Activities

15.0

Previous New

Summary of Estimation for the Year Ending March 31, 2010

20

Securing profitability in Operating Income of 2H, we aim to move into the black in the next fiscal year and get back on track for steady growth in FY12/3.

Precision Equipment Company:- We will concentrate all our strength to accomplish high performance of “NSR-S620”,

cutting-edge ArF immersion tool on schedule and lead to produce good result in next year.- We acquired firm order of LCD Scanners for China, and will do our utmost to ship

and start them operating with special care.- Structural reform such as reorganization of manufacturing and servicing subsidiaries

will continue on schedule.

Imaging Company:- We will win tough competition in each business aspect of product planning, development,

manufacturing, sales and service. Our challenge is to improve profitability.- Concentration to develop next generation DSC with interchangeable lenses will continue.

Instruments Company:Pursuing Post Merger Integration process of Nikon Metrology NV which is now fully consolidated, and aim to produce synergy of integration as early as possible.

Cash dividend per share of common stock: 8 Yen (entire year) as planned.

Agenda



Ⅲ. Reference Data

21

ＵＳ$ＵＳ$

EUROEURO

Reference Data: Exchange Rate

10/3Estimation

22

Net Sales

（4Ｑ）Operating Income

（4Ｑ）

90

130

10/34Q Forecast

Approx. 0.5

Approx. 0.2

Financial Impact from fluctuation by 1 yen

Exchange Rate

Billions of yen

Approx. 0.1

Approx. 0.2

1H 54.1 -19.5 -19.52H -5.9 1.5 3.5

1H 53.1 -22.3 -22.32H -5.4 -1.7 3.3

1H 33.6 -17.7 -17.72H -5.5 -3.3 0.7

NetIncome

OrdinaryIncome

Non-operatingIncome / expense

Extra ordinarygain & loss

Income Taxes

47.7 -19.0

28.1 -17.0

-8.511.1

-3.0-5.0

-24.0

-6.0

-3.0

Billions of yen

-0.5

New Est.09/3

Actual

48.2 -16.0OperatingIncome

-9.0

-21.0

Previous Est. as ofNov.5, 2009

-18.0

-6.0

Reference Data:Earning Estimation for the Year Ending March 31, 2010

23

138.5164.9 172.3 156.9

102.4135.4 139.9

174.8

80.757.9 59.3

41.0

61.727.3

39.0

30.9

18.1 10.912.2

11.0

10.4 8.29.6

11.8

6.3 4.25.4

4.5

5.9

4.54.2

4.6

0

100

200

300

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Reference Data: Quarterly Net Sales by segments

08/3 09/3 10/3

24

Billions of yen

Imaging Company Precision EquipmentCompany

Instruments Company OtherBusinesses

14.523.1 18.9

4.0-6.0

12.5 14.1 17.4

14.96.2

5.9

-3.5-0.6 -10.1

-33.9

-9.2

2.3

-1.1 -0.2

-5.7

0.8

0.6

0.1

-0.6-0.9

-1.6

-1.0

0.8

0.7

-0.4

0.40.8

-40

-30

-20

-10

0

10

20

30

40

50

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Reference Data: Quarterly Operating Income by segments

25

Billions of yen

Imaging Company Precision EquipmentCompany

Instruments Company OtherBusinesses

08/3 09/3 10/3

financial results for the 3rd quarter of the year …...financial results for the 3rd quarter of the...

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