Topcon : FY2023 Financial Results Presentation Material

FY2023

Financial Results

May 10, 2024

TOPCON CORPORATION

President and CEO

Takashi Eto

I n f r a s t r u c t u r e

A g r i c u l t u r e

H e a l t h c a r e

Contents

FY2023 Financial Results Briefing

1. FY2023 Financial Results
2. FY2024 Full Year Plan
3. Progress in Mid-Term Business Plan 2025
4. Appendix

2

Highlight of FY2023 Financial Results

• FY23 Financial Results

Sales flatand Profit decrease

Net Sales 216.5 Billion yen

YoY 0%

Operating Income 11.2 Billion yen

YoY -43%

Positioning Business

YoY

Net Sales

Operating Income

Net Sales were lower than the previous year, and profit decreased though SGA control.

Eye Care Business

	YoY
Net Sales	(Record High)
Operating Income	(Record High)

Record High for both net sales and profit Steadily improving operating income ratio

• FY24 Full Year Plan

Significant increase in sales and profit

Structural reforms effect realized, upfront investment blossoming

Signed partnership agreement

Net Sales 230.0 Billon yen

YoY +6%

Operating Income18.0 Billon yen

YoY +61%

Positioning Business

With the effect of structural reforms, reducing SGA

Eye Care Business

Expecting increase in sales and profit though continued investment

YoY

Net Sales Operating Income

YoY

Net Sales Operating Income

strategically with Microsoft Corp.

Realizing innovation in the U.S. healthcare industry "Healthcare from the eye".

©2024 Topcon Corporation

3

1. FY2023 Financial Results

• Consolidated Financial Results
• Overview of Each Business

©2024 Topcon Corporation

4

FY2023 Financial Results

		FY2022		FY2023			Plan*
（Unit：billion yen）	Actual		Actual	YoY	%	*Announced on January 29
Net Sales		215.6		216.5	+0.9	0%	215.0
Gross Profit		112.4		114.8	+2.4	+2%
Gross Profit Ratio	52.1%		53.0%	+0.9pt
SGA		92.9		103.6	+10.7	+12%
Operating Income	19.5		11.2	-8.3	-43%	13.0
Operating Income Ratio	9.1%		5.2%	-3.9pt		6.0%
Ordinary Income	17.8		8.9	-9.0	-50%	11.0
Extraordinary	Losses	-1.8		-4.4	-2.6
Net income		11.8		4.9	-6.9	-58%	3.0
Dividends		¥42		¥42	0	0%
Payout Ratio		37%		90%	+52pt
Exchange Rate	USD	¥134.95		¥144.40	¥+9.45	Q4 Assumption	¥140
(Average)	EUR	¥141.24		¥156.80	¥+15.56	(	(	¥150
			©2024 Topcon Corporation			5

FY2023 Operating Income YoY Breakdown

（Unit：billion yen）

25

20			Main Factors
15		-7.5	・R&D
	・Personnel Expenses
			・Selling Activity Expenses
			+0.4
10			-3.1
19.5

5

0

Difference by quarter

Q1	: -2.4	Continual
Q2	: -1.3
improvement
Q3 : -0.4
each quarter
Q4	: +1.0

+1.9

11.2

FY2022	Sales Volume,	Manufacturing	Fixed Cost	FX Effects	FY2023
YTD	Product Mix	Cost			YTD

©2024 Topcon Corporation

6

1. FY2023 Financial Results

• Consolidated Financial Results
• Overview of Each Business

©2024 Topcon Corporation

7

Overview of Each Business 【Positioning Business】

• Net Sales were lower than the previous year, and profit decreased though SGA control.

✓ Sales and Profit		FY2022	FY2023			Plan*
	（Unit：billion yen）		Actual	Actual	YoY	%	*Announced on
		January 29
		Net Sales	147.7	140.4	-7.3	-5%	138.0
	Positioning Business	Operating	20.5	9.1	-11.4	-56%	11.5
	Income
		Operating Income	13.9%	6.5%	-7.4pt	-	8.3%
		Ratio
	Exchange Rate	USD	¥134.95	¥144.40	¥+9.45
	(Average)	EUR	¥141.24	¥156.80	¥+15.56

• Sales by Region

	FY2022				FY2023
Asia/Others		Japan		Asia/Others		Japan
¥23.7B		¥29.8B		¥20.7B	15%	¥26.0B
16%	20%				19%
	¥147.7 Billion		YoY		¥140.4 Billion
		-5%
		43%	North	25%
Europe 21%		41%
America
¥30.6B		¥63.6B		Europe		North
						America
					¥35.8B		¥57.9B
			©2024 Topcon Corporation		8

Overview of Each Business 【Positioning Business】

• Net Sales were lower than the previous year, and profit decreased though SGA control.

✓ Sales and Profit		FY2022	FY2023			Plan*
	（Unit：billion yen）		Actual	Actual	YoY	%	*Announced on
		January 29
		Net Sales	147.7	140.4	-7.3	-5%	138.0
	Positioning Business	Operating	20.5	9.1	-11.4	-56%	11.5
	Income
		Operating Income	13.9%	6.5%	-7.4pt	-	8.3%
		Ratio
	Exchange Rate	USD	¥134.95	¥144.40	¥+9.45
	(Average)	EUR	¥141.24	¥156.80	¥+15.56

• Comparison with Published Forecast (Operating Income)

（Unit：billion yen）			High-margin product mix	Delay in structural
			difference
		▲1.4	reforms, etc.
12							▲0.9			▲0.1
8			11.5						9.1
4
0

FY2023	Sales Volume,	Fixed Cost	Others	FY2023
Published Forecast	Product Mix			Actual
	©2024 Topcon Corporation		9

Overview of Each Business 【Positioning Business】

• Review of Financial Results

Overall

• Sluggish sales due to the prolonged impact of hold off on purchases caused by the receding expectations for monetary easing
• Reactionary decline in special large demand in the previous year
• Continued the focus on reducing SGA

ICT Construction・IT Agriculture

• ICT Construction: OEM sales remained stable except for a reactionary decline in special large demand in the previous year, while aftermarket was impacted by the prolonged holding off on purchases.
• IT Agriculture: Sales declined due to the impact of decreasing grain prices and remaining at high interest rates
• Demand from subsidy effects had run its course in IT agriculture in Japan.

Surveying and laser products

• Hold off on purchases due to the stagnant housing construction market in North America and economic uncertainty
• Sales in Japan temporarily declined due to inventory adjustment. Sales in Asia was steady.

©2024 Topcon Corporation

10