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

株式会社ニコン2006年月5月15日

Financial Results for the 3rd Quarter of the Year Ending March 31, 2011

NIKON CORPORATIONCorporate Communications & IR Dept.

Feb. 3rd ,2011

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, 2011

Ⅱ. Estimation for the Year EndingMarch 31, 2011

Ⅲ. Reference Data

Net SalesNet Sales

Operating IncomeOperating Income

Ordinary IncomeOrdinary Income

Net IncomeNet Income

Financial Highlights for the 3rd Quarter of the Year Ending March 31,2011

＊ Values in this slide are rounded off to the nearest 100 million.

Impact on Op. Income:

2

10/3 (A)3Ｑs3Ｑ

11/3 (B) (B)-(A)3Ｑs3Ｑ 3Ｑs3Ｑ

+30.4

+15.2

+14.2

+9.7

- 8.7

- 18.4

-%

94133

-16.1

591.5

3.7

1.5%

1.7%

-%

3.4

0

223.4

90133

Exchange： US$Rate (YEN) EUROExchange： US$Rate (YEN) EURO

-%-18.6

-%-17.6

- 20.6- 43.2

FCFFCF +29.236.7

5.2%

87113

33.7

651.8

7.3%

7.1%

3.8%

5.5%

35.7

3.1%20.3

65.9

17.9

18.6

9.7

253.8

83112

Impact on Net Sales:

+60.3

+49.8

+54.3

+37.9

Billions of yen

% vs Net Sales

% vs Net Sales

% vs Net Sales

Precision Equipment and Instruments businesses showed a recovery. Sales volume increase in Imaging Business repelled an impact by strong yen. Total sales and income increased year-on-year both for 3rd quarter and year-to-date results.

Net SalesNet Sales


IC Steppers & ScannersNew / Refurbished

(units sold)

IC Steppers & ScannersNew / Refurbished

(units sold)

LCD Steppers &Scanners

(units sold)


(units sold)

10/3 (A)3Ｑs3Ｑ

11/3 (B)3Ｑs3Ｑ

(B)-(A)3Ｑs3Ｑ

Precision Equipment Company: 3rd Quarter

+4

+9/+4

+12.5 +51.8

+30.5 +45.0

-%

15/5 33/17

18 41

3.3 - 1.45.4%

61.4 142.2

3

+9/+12

+11

-%

6/1 24/5

14 30

- 9.2 - 53.2-%

30.9 97.2

% vs Net Sales

Billions of yen

As the market conditions improve favorably for IC/LCD steppers/scanners, the sales volume up to 3rd quarter increased about 40% from the same period last year. This quarter achieved the profitable result for the first time in the last nine quarters.

1 1

13

9

24

0

5

10

15

20

10/12 11/12

11

2

2

121

4

0

5

10

15

20

6

1514

10/12 11/12

Precision Equipment Company: 3rd Quarter

ArF

18

IC Steppers & ScannersSales by Technology

LCD Steppers & Scanners by Generation

Units Units

KrF

ArFimmersion

i-line～4G

5G/6G

7G～

4

Net SalesNet Sales


+ 300

+ 600

8.4%

10/3(A)3Ｑs3Ｑ

11/3(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) +2,380

1,250

1,850

4,900

3,150

4,800

11,600

+ 50

+ 100

+ 820

15.7 38.0 - 6.09.1%

172.2 454.0 + 3.9

9.8%

1,200

1,750

4,080

2,850

4,200

9,220

17.4 44.010.0%

174.8 450.1 - 2.6

- 1.7

Billions of yen

% vs Net Sales

5

In all categories, the record sales was marked in terms of quarterly volume. Compact DSC posted 20% hike in sales volume despite the flat 3rd quarter market growth. Third quarter ended with reduced sales and profit, while the year-to-date results showed sales hike and profit reduction, but would have been posted sales/profit increases if yen appreciation impact is disregarded.

Instruments Company : 3rd Quarter

+7.6Net SalesNet Sales

Operating IncomeOperating Income-%

10/3 (A)3Ｑs3Ｑ

11/3 (B)3Ｑs3Ｑ

(B)-(A)3Ｑs3Ｑ

- 1.6 - 5.8 +4.1 +2.5-%

13.0 37.2 +1.2

-%- 5.7 - 8.3

-%

11.8 29.6

6

% vs Net Sales

Billions of yen

Growth in Bioscience has leveled off, while Industrial Instruments showed a recovery. Increased sales and significantly reduced loss was posted both for 3rd quarter and year-to-date results, compared from last year.

256. 0 242. 4 242. 8

56. 1 64. 1 61. 6

207. 0 236. 3 225. 5

113. 8 107. 4 139. 0

107. 7162. 6 147. 3

0

300

600

900

10/9

46.5%

50.2%

45.9% 45%

50%

55%

10/3 10/12 7

Balance Sheet : 3rd Quarter

10/910/3 10/12

740.6

Liabilities & Net assets

Billions of yen

Ratio of equity capital

Fixed assets

Other currentassets

Inventories

Notes & accountsReceivable-trade

Cash & Time Deposit

Assets

Billions of yen

373. 3 379. 6

368. 6439. 5 436. 6

372. 0

0

300

600

900812.8 816.2812.8 816.2

Total liabilities

Total Net assets

740.6

8

Summary for the 3rd Quarter of the Year Ending March 31, 2011

Both 3rd quarter and year-to-date results posted increased sales and profit year-on-year in spite of progressing yen appreciation. Free cash flow to date generated additional 65.9 billion yen.

Precision Equipment Company- Brisk sales of ArF immersion scanner and LCD steppers/scanners for large panels

contributed to the profitable quarter.- Accumulated loss to 3rd quarter was significantly reduced close to the break-even point.

Imaging Company-Single-lens reflex DSC, interchangeable lenses, and compact DSC continued to enjoy

favorable results, while Compact DSC continuously expanded the market share. -Third quarter ended with reduced sales and profit, while the year-to-date resultsshowed sales hike and profit reduction. But, sales volume increase almost offset the strong yen impact.

Instruments Company-New products including super resolution microscope, digital microscope ShuttlePix, and non-contact multi-sensor 3D metrology system were warmly received.

-Industrial instruments recovered, posting sales hike in 3rd quarter and year-to-date,and significantly shrinking the loss.

Agenda



Ⅲ. Reference Data

Performance Estimation for the Year Ending March 31, 2011

9

Net Sales Net Sales


Ordinary IncomeOrdinary Income

Net IncomeNet Income

Exchange： US$Rate (YEN) EURO Exchange： US$Rate (YEN) EURO

10/3

(A)3Ｑs4Ｑ

Previous est.as of Nov.4

2010 (B)

1H2H

New est.

( C )( C )-(A) ( C)-(B)

870.0

5.5%

5.6%

30.0

49.0

48.0 33.714.3

85112

8780

113110

35.713.3

20.39.73.4%

3Ｑs4Ｑ

+84.5

+42.6

+64.3

+61.9

-

-

-

-

591.5194.0

- 16.12.2

9491

133125

- 18.63.3

- 17.65.0

FCFFCF

870.0

5.5%

5.6%

48.0

49.0

30.0

84112

398.0472.0

15.232.8

17.831.2

10.619.4

65.08980

114110

-%

93131

785.5

- 13.9

- 15.3

- 12.6-%

-%

56.43.4%

67.0 -

% vs Net Sales

% vs Net Sales

% vs Net Sales

651.8Billions of yen

218.2

Forecasts for whole year are unchanged, as the market deterioration and fiercer competitions are expected. Cash dividend per share of common stock is 19 yen as planned (5 yen paid for interim dividend).

Estimation for Precision Equipment Company

10/3

10

Net SalesNet Sales


IC Steppers & Scanners

New / Refurbished(units sold)

IC Steppers & Scanners

New / Refurbished(units sold)


(units sold)


(units sold)

Market ScaleIC Steppers & Scanners

(units sold)

Market ScaleIC Steppers & Scanners

(units sold)

3Qs4Q


2010

1H2H New est. 3Qs

4Q

Market Scale LCD Steppers & Scanners

(units sold)

Market Scale LCD Steppers & Scanners

(units sold)

215.0

4.0

53/24

62

142.272.8- 1.45.4

33/1720/ 7

4121

1.9%

Approx. 220

Approx. 110

97.252.9

- 53.2- 5.424/512/8

3015

215.0

4.0

53/24

62

80.7134.3

- 4.78.7

18/1235/12

2339

Approx. 220

1.9%

Approx. 110

-%

150.1

- 58.6

36/13

45

112

74

Billions of yen

% vs Net Sales

Third quarter turned the bottom line into black. In 4th quarter, sales and profit growth from 3rd quarter is expected, aiming to be a profitable year and stepping up to a full-scale recovery in the next fiscal year.

Estimation for Precision Equipment Company

4

14 14

1

1 115

27 27

11

16

11

0

10

20

30

40

50

60

10/3 New est.

21

13 13

19

33 33

165

16

0

10

20

30

40

50

60

70

4536

53 62

Previous est.

53 62

LCD Steppers & Scanners by Generation

IC Steppers & ScannersSales by Technology

Units Units

10/3 New est.Previous est.

i-line

KrF

ArF

ArFimmersion

~4G

5G/6G

7G~

11

Estimation for Imaging Company

12

Net SalesNet Sales








Market Scale SLR-DSC(1,000 of units sold)

Market Scale SLR-DSC(1,000 of units sold)

Market Scale Interchangeable Lenses

(1,000 of units sold )

Market Scale Interchangeable Lenses

(1,000 of units sold )





Market Scale C-DSC(1,000 of units sold)

Market Scale C-DSC(1,000 of units sold)

575.0

46.0

4,250

14,000

454.0121.0

38.08.0

3,1501,100

11,6002,400

6,350 4,8001,550

8.0%

13,000

112,00022,000

10/310/3 3Qs4Q

3Qs4Q


2010


20101H2H

1H2H New est.New est. 3Qs

4Q3Qs4Q

450.1119.4

44.08.1

2,850820

9,2202,290

4,2001,250

10,88017,720

569.5

52.1

3,670

11,510

5,450

9.1%

102,740

13,00022,000

575.0

46.0

4,250

14,000

281.8293.2

22.323.7

1,9002,350

6,7007,300

6,350 2,9503,400

8.0%

112,000

% vs Net Sales

Billions of yen

Sales will remain strong: however, due to concerns over weaker consumer spending and intensified competitions, the yearly forecast is not changed.

Estimation for Instruments Company

13

10/310/3

Net SalesNet Sales


3Ｑs4Q

3Ｑs4Q


2010


20101H2H

1H2H New est.New est. 3Qs

4Q3Qs4Q

57.0

- 5.5

37.219.8

- 5.80.3-%

10/3 New est.0

20

40

60

63%

37%

48%

Previous est.

50%

50%52%

29.615.5

- 8.3- 1.0-%

45.1

- 9.3

60.0

- 5.0

24.235.8

- 4.1- 0.9-%% vs Net Sales

Billions of yen

Billions of yen

Bioscience

Industrial instruments

As government spending is expected to shrink worldwide, sales and profit forecasts for Bioscience are downgraded: but, 4th quarter target to achieve profitability is not changed.

Estimation for Capital Expenditure, Depreciation and R&D

37.5

33.0

43.539.8

30.4

22.625.7

32.936.0

36.0

0

10

20

30

40

50CapitalExpenditureDepreciation

47.2

58.461.5 60.3 60.0

7.7

7.0

6.15.7

6.9

0

10

20

30

40

50

60

70

5%

6%

7%

8%

9%

10%R&D

R&D ratio of Sales

07/3 07/308/3 08/309/3 09/310/3 10/311/3est.

11/3est.

14

Billions of yen Billions of yen

[R&D][Capital Expenditure &Depreciation]

* 09/3 ~: Include the amount of acquisition of Lease asset by change of Accounting Standard for Lease Transactions

Future Outlook

15

Performances of Precision Equipment and Instruments are improving as planned. Imaging Company is showing robustness against stronger yen that was unexpected at the year beginning. The business foundation is solidified to achieve continued growth in and after next fiscal year ending March 2012.

Precision Equipment Company- More ArF immersion scanners, S620D, are being sold in the 2nd half. To further expand

sales next year, efforts are made to improve performances under customer processconditions.

- Strong demands are expected for LCD steppers/scanners for high-precision mid/small-sized panels. Efforts are made to secure purchase orders.

- Leadtime reduction is pursued to prevent opportunity losses and inventory growth forcost reduction.

Imaging Company- Efforts are made to penetrate into emerging country markets and improve product

competitiveness and customer satisfaction. Targets are set to accelerate salesexpansion at higher rate than market expansion and to improve profitability by reforming the cost structure.

- New generation digital cameras are under development.

Instruments Company-It is aimed to secure sales expansion in the industrial instruments field that is in the solidrecovery process as well as in the bioscience field that is mainly driven by high-end system products, targeting at posting yearly profit in the next fiscal year.

Agenda



Ⅲ. Reference Data

US$US$

EUROEURO

Reference Data: Exchange Rate

16

80 yen

110 yen

1.2

0.4

Financial Impact from fluctuation by 1 yenExchange Rate

0.3

0.2

11/3Estimation

Net Sales

（4Ｑ）Operating

Income（4Ｑ）11/3

4Q ForecastBillions of yen

1H -19.5 15.2 15.22H 5.6 32.8 32.8

1H -22.3 17.8 17.82H 7.0 31.2 31.2

1H -17.7 10.6 10.62H 5.1 19.4 19.4

30.0

Previous Forecastas of Nov. 4, 2010

NetIncome

OrdinaryIncome

Non-operatingIncome/Expenses-net

Extra ordinaryIncome/Expenses-net

Income Taxes

-15.3 49.0

-12.6 30.0

-2.3-5.0

-6.013.0

49.0

-6.013.0

1.0

Billions of yen

-1.4

11/3Estimation

10/3

-13.9 48.0OperatingIncome 48.0

1.0

Reference Data:Earning Estimation for the Year Ending March 31, 2011

17

156.9

102.4135.4 139.9

174.8

119.4148.8 133.0

172.2

41.0

61.727.3

39.0

30.9

52.9

40.340.5

61.411.0

10.4 8.29.6

11.8

15.510.9

13.3

13.07.1

5.9

4.24.5

4.66.0

5.26.34.5

0

100

200

300

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

09/3

Reference Data: Quarterly Net Sales by segments

10/3

18

11/3

Billions of yen

Imaging Company Precision EquipmentCompany

Instruments Company OtherBusinesses

4.0-6.0

12.5 14.1 17.48.2

14.08.3

15.7

-3.5-0.6 -10.1

-33.9

-9.2 -5.3 -0.6 -4.1

3.3

-1.6

-1.6

0.10.8

0.3

-0.9-0.6 -1.5

-1.0

-5.7-1.1

-2.6

1.20.4

0.60.8

0.71.1

-40

-30

-20

-10

0

10

20

30

40

50

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

Reference Data: Quarterly Operating Income by segments

09/3 10/3

19

11/3

Billions of yen

Imaging Company Precision EquipmentCompany

Instruments Company OtherBusinesses

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

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