mid-term business plan 2015 - topcon...mid-term plan fy2012 results exchange fluctuation effect of...

©2013 Topcon Corporation Creativity & Growth

Ⅱ Group Vision for the Mid-Term Business Plan

7

- new growth strategies -


Strategic Directions to Achieve Mid-Term Business Plan 2015

8

Shift up a gear from Reform to Growth Strategy!! Aim to become a true Global Top !

Profitable and sustainable growth by creativity

Accelerate TM-1 products

Pioneer new business &

Strengthen conventional business

Utilize Global human resources

Strategy 1 Strategy 2 Strategy 3

New Slogan

Targeting ROE 20%！


Topcon’s Business Domain

Expanding business in growing fields

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IT Agriculture

Applied IT to agriculture and increase of productivity

IT Construction Automation of construction work

Survey/Construction

Infrastructure building in emerging countries

Ophthalmology Total solutions in response to increase of eye diseases caused by aging society

POC

SIC

POC

ECC

Monitoring Diagnostic evaluation of deteriorated infrastructure/ Disaster prevention system

GPS(GNSS)

SIC


Strategy 1. Enhance new business (Strengthen core business)

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Grow our business by aggressive investment

Core Business 60%

New Business 40%

R&D （New & Core）

35 billion yen

Net Sales (Unit: billion yen)

R&D to Sales Ratio

10％

0

70

140

FY2012 FY2013 FY2014 FY2015

New BusinessCore Business

©2013 Topcon Corporation Creativity & Growth 11

Core

New

Survey/Construction/ Building

IT for disaster prevention

Construction Information Modeling

Building Information Modeling

Enhance new business with strong basis of surveying instruments

Market Size

100

20

30

30

Core Business 54％

New Business 46％

Growth Rate

105%

150%

2,000%

150%

(FY12-15 plan)

Sensors for IT Agriculture

10 800%


(billion yen)


0

25

50

FY2012 FY2013 FY2014 FY2015



GNSS

IT Agriculture

IT Construction

Utilizing GNSS(GPS) as a core technology for rapid expansion in IT Construction & IT Agriculture

90

150

90

Core Business 55％

New Business 45％

140%

135%

200%


Core

New Market Size

Growth Rate (FY12-15 plan) (billion yen)


0

30

60

FY2012 FY2013 FY2014 FY2015



Strengthen Preventive Medicine and Treatment Segment by Enhancing the Strong Competitiveness of Examination/Diagnosis Segment

Examination/Diagnostic

Prevention/Checkup

Treatment/ Prognostic Management

Ophthalmic IT

100

80 70

30

Core Business 67％

New Business 33％

130%

160% 400%

160%


Core

New Market Size

Growth Rate (FY12-15 plan) (billion yen)


0

25

50

FY2012 FY2013 FY2014 FY2015



Strategy 2. Launch disruptive products

FY2010 - FY2012 (Results)

FY2013 - FY2015 (Plan)

Disruptive Innovation 5 models 10 models

World’s No.1 22 models 17 models

World’s First 9 models 22 models

Reduction of COGS 8 models 10 models

Products for emerging Markets 4 models 9 models

Enhancement of Sales Capability 3 models 6 models

Total 51 models 74 models

Accelerate development of strategic products by investing in R&D


Strategy 3. Capitalize on the full value of global human resources

★福澤弘 ★澤口茂之 ★レイモンド・オコーナー

★内田憲男 Topcon

Eye Care Company

Smart Infrastructure Company

★Hiroshi Fukuzawa ★ShigeyukiSawaguchi ★レイモンド・オコーナー

★Norio Uchida

Positioning Company

★Raymond O'Connor

Positioning Company (U.S.A.) ★Raymond O'Connor

Topcon Technology Center (Russia) ★Scott Baker

Topcon Precision Agriculture Pty Ltd. (Australia) ★Albert Zahalka

Tierra S.p.A. (Italy) ★Ivan Di Federico

Only 2% of POC employees are Japanese

3 in-house companies

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Selecting right person for the right job globally

Only 40% of employees are Japanese

Topcon Corporation


Financial Targets

[Consolidated] FY2012 FY2013 FY2014 FY2015

Net Sales 97,345 110,000 120,000 132,000

Operating Income （Operating income ratio）

5,214 （5.4%）

11,500 （10.5%）

16,000 （13.3%）

22,000 （16.7%）

Ordinary Income 3,471 10,000 14,500 20,500

Net Income 511 5,000 8,300 12,800

ROE 1.3% 10.3% 15% 20%

ROIC 3.8% 9.5% 11% 15%

Dividends per Share (yen) ¥6 ¥10 ¥16 ¥24 Dividend Payout Ratio 109.4% 21.6% 20% 20%

Assumed Exchange

Rate

US$ (yen) ¥83.23 ¥90 ¥90 ¥90

EUR(yen) ¥107.57 ¥120 ¥120 ¥120

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Average Exchange Rate

(Unit: million yen)

Average Exchange Rate

※ Target Dividend Payout Ratio: TOPCON targets 20% as the consolidated dividend payout ratio

Mid-Term Plan 2015


Financial Targets

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[Consolidated] FY2012 FY2013 FY2014 FY2015 FY2012-FY2015 CAGR

Net Sales

Smart Infrastructure 29,839 33,000 35,500 39,000 9%

Positioning 37,824 43,000 49,000 56,000 14%

Eye Care 31,073 38,000 41,000 44,500 13%

Others 9,262 7,000 7,200 7,500

Elimination -10,653 -11,000 -12,700 -15,000

Total 97,345 110,000 120,000 132,000 11%

Operating Income

(Operating Income Ratio）

Smart Infrastructure 4,126 （13.8%）

4,800 （14.5%）

5,900 （16.6%）

7,500 （19.2%） 22%

Positioning 1,413 （3.7%）

4,000 （9.3%）

6,000 （12.2%）

8,600 （15.4%） 83%

Eye Care 1,563 （5.0%）

4,200 （11.1%）

5,500 （13.4%）

7,100 （16.0%） 66%

Others -269 （-2.9%）

100 （1.4%）

200 （2.8%）

400 （5.3%）

Goodwill/ Amortization -1,618 -1,600 -1,600 -1,600

Total 5,214 （5.4%）

11,500 （10.5%）

16,000 （13.3%）

22,000 （16.7%） 62%

(Unit: million yen) Mid-Term Plan 2015


5.2 3.0 1.4

- 4.8

8.0

- 4.0

13.2

16.8

22.0

Analysis of Operating Income （Unit: billion yen）

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FY2012 Actual Results

FY2015 Mid-Term Plan

FY2012 Results

Exchange Fluctuation

Effect of Reform

Plan Investment for Development

COGS Reduction

Sales Price Down

Sales Increase

FY2015 Mid-Term Plan

Total Amount of Gain and

Loss Factors

mid-term business plan 2015 - topcon...mid-term plan fy2012 results exchange fluctuation effect of...

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