08 31-12 nikon rd-q1_3_2

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NIKON CORPORATION Corporate Communications & IR Dept. Aug 8 ,2012 Financial Results for the First Quarter of the Year Ending March 31, 2013 Audio Conference in Tokyo (Aug 8, 2012) NIKON CORPORATION Forward-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.

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Transcript of 08 31-12 nikon rd-q1_3_2

Page 1: 08 31-12 nikon rd-q1_3_2

NIKON CORPORATION

Corporate Communications & IR Dept.Aug 8

,2012

Financial Results for the First Quarter of the Year Ending March 31, 2013

Audio Conference in Tokyo (Aug 8, 2012) NIKON CORPORATION

Forward-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.

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2

Agenda

I.

Financial Results for the First Quarter of the Year Ending March 31,2013

II. Estimation for the Year EndingMarch 31,2013

Ⅲ.Reference Data

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Overall sales up 6% and operating income down 37% on previous Q1.

Precision Equipment Company-

IC steppers/scanners sales volume decreased due to the market contraction. LCD steppers/scanners maintained the sales of over 20 units.

-

Sales decreased 15%; operating income saw a slight reduction.

Imaging Company-

Suspended production due to Thai floods recovered to the normal level, being able to respond to brisk demands for digital cameras ―

interchangeable lens type and interchangeable lenses. -

Sales improved 14%; operating income suffered 38% reduction due

to

strong yen and sales expenses hike.

Instruments Company-

Flat sales, but the deficit amount increased due to strong yen.

3

Summary for the First Quarter of the Year Ending March 31, 2013

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12/3 1Q(A)

13/3 1Q(B)

Change(B)-(A)

Net Sales 245.5 259.4 +13.9Operating Income 36.9

15.0%

23.39.0%

-13.6Ordinary Income 37.7

15.4%

23.49.0%

-14.3

Net Income 30.612.5%

15.76.1%

-14.9FCF 1.3 - 0.2 -1.5

Exchange RateUS$

EURO

82

yen

117yen

80yen

103yen

Impact onNet Sales: -12.4Op. Income: -4.7

4* Amounts in this statement are rounded down to the hundred million.

Financial Highlights for the First Quarter of the Year Ending March 31, 2013

Billions of yen

% vs Net Sales

% vs Net Sales

% vs Net Sales

Sales improved 6%: however, the incomes deteriorated due to strong yen and increased sales expenses.

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12/3 1Q(A)

13/3 1Q(B)

Change(B)-(A)

Net Sales 61.6 52.2 -9.4Operating Income 10.6

17.2%

10.219.5%

-0.4IC Steppers & Scanners

New / Refurbished 11/7 units 6/3 units -5/ -4 units

LCD Steppers & Scanners 24 units 22 units -2

units

5

Precision Equipment Company

Billions of yen

% vs Net Sales

IC steppers/scanners started to enjoy the effect of the earning structure revamp of the previous year, which was able to reduce the ArF immersion scanner production leadtime among other benefits. LCD steppers/scanner inked a favorable sales volume, mainly those for mid/smalls-

sized panels. The Company overall maintained the high operating income ratio.

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11

4

8

18

5 0

0

5

10

15

20

25

30

12/3 1Q 13/3 1Q

5

91

4

3

5

0

5

10

15

20

12/3 1Q 13/3 1Q

ArF

immersion

KrF

ⅰ-line

7G~

5G/6G

4G

18

9

2422

6

Precision Equipment CompanyIC Steppers & Scanners

Sales by Technology*Including refurbished systems

LCD Steppers & Scanners Sales by GenerationUnits Units

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12/3 1Q(A)

13/3 1Q(B)

Change(B)-(A)

Net Sales 167.0 190.1 +23.1Operating Income 31.7

19.0%

19.610.3%

-12.1Digital

camera

―Interchangeable Lens Type 1,360 1,670 +310

InterchangeableLenses 2,000 2,300 +300

Compact DSC 3,950 4,430 +480

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Imaging Company

Billions of yenCameras & Lenses(1,000 of units sold)

% vs Net Sales

Production that had been impaired by the Thai floods recovered to the normal capacity. Digital cameras ―

interchangeable lens type and interchangeable lenses sold 23% and 15% more units respectively, and the compact DSC achieved 12% sales volume hike in spite of the shrinking market. The operating income went down, affected by the strong yen and sales expenses increase.

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12/3 1Q(A)

13/3 1Q(B)

Change(B)-(A)

Net Sales 11.1 10.8 -0.3Operating Income -1.9

-%

-2.4-%

-0.5

8

Instruments Company

Billions of yen

% vs Net Sales

In the strong yen environment, the sales amount maintained the level of previous year: but, the loss expanded.

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50.3%48.8%

51.1%

40%

50%

60%

253.5

61.8

132.0

176.1132.4 120.2

236.3 250.7

57.776.6

248.6263.0 274.5

126.9

137.5

0

300

600

900

11/6 12/3 12/6

430.6

411.4

412.9 433.6

432.7 426.6

0

300

600

900

11/6 12/3 12/6

845.6 842.0860.2845.6 860.2 842.0

9

Balance SheetAssets Liabilities & Equity

Billions of yenBillions of yen

Capital ratio

Fixed assets

Other currentassets

Inventories

Notes & accountsReceivable-trade

Cash & Time Deposit

Total liabilities

Total Net assets

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10

Agenda

I.

Financial Results for the First Quarter of the Year Ending March 31,2013

II. Estimation for the Year EndingMarch 31,2013

Ⅲ.Reference Data

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Change in the assumed exchange rate will downgrade the sales and

incomes: but, the overall performance trend, sales/income increase, will not change.

Precision Equipment CompanyThe number of IC and LCD steppers/scanners sold is expected to decrease on year due to the market contraction. But, the newly launched IC stepper/scanner will secure the profitable 2nd

half. The previous forecast is unchanged: year-on-year sales down 15% and income down 41%.

Imaging CompanySales volume forecast is unchanged: however, the assumed exchange rate change forces downgrading of both sales and operating income amounts. Both sales and income are expected to improve 23% and 39% on year.

Instruments CompanyIn emerging nations such as Asian countries, the bioscience field strives to expand the share of biological microscopes for general research and clinical use,

while the industrial instruments field attempts to capture new demand from car industry, etc. The previous forecast is unchanged: sales is expected to grow 9% on year with

reduced loss.

The assumed exchange rate against Euro is changed from 105 yen to 100 yen. Estimated annual dividend per share: 41 yen (interim dividend 19 yen)

11

Summary of Estimation for the Year Ending March 31, 2013

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12/3Actual (A)

1H2H

Previous est. (B) (May 10)

1H2H

New est.(C)

1H2H

Change (C)-(A)

Change (C)-(B)

1H2H

Net Sales 918.6 486.3432.3 1,030.0 485.0

545.0 1,020.0 485.0535.0 +101.4 -10.0 ±0

-10.0Operating

Income 80.08.7%

61.118.9

90.08.7%

35.055.0

85.08.3%

34.051.0 +5.0 -5.0 -1.0

-4.0

Ordinary Income 89.3

9.7%

65.124.2

94.09.1%

38.056.0

90.08.8%

37.053.0 +0.7 -4.0 -1.0

-3.0

Net Income 59.36.5%

50.48.9

65.06.3%

29.036.0

60.05.9%

27.033.0 +0.7 -5.0 -2.0

-3.0

FCF -34.0 30.0 30.0 +64.0 ±0 ―Exchange

RateUS$

EURO

79yen

109yen

80yen78yen

114yen

104yen

80yen

105yen

80yen

101yen

80yen80yen

101yen

100yen

12

Estimation for the Year Ending March 31, 2013

Billions of yen

% vs Net Sales

% vs Net Sales

% vs Net Sales

Although economy slowdown is concerned in various regions, the sales volume forecast of each Company is not changed. As the assumed exchange rate against Euro is changed, the yearly sales and income amounts are downgraded. The previous estimation is as of May 10, 2012.

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12/3Actual

1H2H

Previous est. (May 10)

1H2H

New est.1H2H

Net Sales 248.1 124.8123.3 210.0 85.0

125.0 210.0 85.0125.0

Operating Income 42.717.2%

23.219.5

25.011.9%

6.019.0

25.011.9%

6.019.0

IC Steppers & Scanners

New / Refurbished55/29units

26/1629/13 46/20units 12/ 9

34/11 46/20units 12/ 934/11

LCD Steppers & Scanners 86units 48

38 42units 2814 42units 28

14IC Steppers & Scanners

Market Scale CY11/12 311units Approx. 240units Approx. 240units

LCD Steppers & Scanners

Market Scale

CY11/12109units Approx. 60units Approx. 60units

13

Estimation for Precision Equipment Company

Billions of yen

% vs Net Sales

In IC stepper/scanner division, sales of new products, ArF immersion scanner S621D and ArF scanner S320F, will be fully materialized in the 2nd

half, making a good start for further expansion in the following year. LCD stepper/scanner is to maintain steady sales of Gen. 5/6 machines for high-precision mid/small-sized panel application.

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27

9

20

2735

9

28

1010

3

20

18

0

10

20

30

40

50

60

70

80

90

12/3 Actual Previous est . New est .

6

3437

6

32

34

17

2 2

0

10

20

30

40

50

60

70

80

90

12/3 Actual Previous est . New est .

84

66 66

86

42 42

14

Estimation for Precision Equipment CompanyIC Steppers & Scanners

Sales by Technology*Including refurbished systems

LCD Steppers & Scanners Sales by Generation

Units Units

i-line

KrF

ArF

ArFImmersion

4G

5G/6G

7G~

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12/3Actual

1H2H

Previous est.(May 10)

1H2H New est. 1H

2H

Net Sales 587.1 324.5262.6

730.0 360.0370.0

720.0 360.0360.0

Operating Income 53.99.2%

47.46.5

80.011.0%

38.042.0

75.010.4%

37.038.0

Digital

camera

―Interchangeable

Lens Type4,740 2,730

2,0107,000 3,400

3,6007,000 3,400

3,600

Interchangeable Lens 7,130 3,930

3,20010,000 4,900

5,10010,000 4,900

5,100

Compact DSC 17,370 7,8609,510 18,000 8,400

9,600 18,000 8,4009,600

D-CILMarket Scale 16,330 19,000 19,000

ILMarket Scale 26,410 31,000 31,000

C-DSCMarket Scale 99,330 95,000 95,000

15

Estimation for Imaging CompanyBillions of yen

% vs Net Sales

Cameras & Lenses(1,000 of units sold)

In the yearly forecasts, the sales volume is unchanged while the

sales and operating income are downgraded due to a change in the assumed exchange rate.

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12/3Actual

1H2H

Previous est.(May 10)

1H2H

New est.1H2H

Net Sales 56.0 24.631.4 61.0 24.0

37.0 61.0 24.037.0

Operating Income -3.1

-%

-2.3-0.8 -1.0

-%

-2.51.5 -1.0

-%

-2.51.5

0

15

30

45

60

75

12/3 Actual Previous est. New est.

53%

47%

51%

49%

53%

47%

16

Estimation for Instruments Company

Billions of yen

% vs Net Sales

Billions of yen

Bioscience

Industrial instruments

Non-contact 3D metrology tools and X-ray inspection systems of Nikon Metrology are regarded as potential products for midterm growth. Development and sales promotion are scheduled this year for future income expansion. Sales is expected to rise 9% with reduced loss.

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65.0

37.5

43.4

29.7

55.9

32.9 35.9 34.032.5

42.0

0

10

20

30

40

50

60

70

09/3 10/3 11/3 12/3 13/3

CapitalExpenditure

Depreciation

61.4 60.2 60.7

68.7

77.0

7.5%7.5%

6.8%

7.7%

7.0%

0

10

20

30

40

50

60

70

80

09/3 10/3 11/3 12/3 13/3

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%R&D

Ratio of R&D

Est. Est.

Investment for equipment replacement and building repair due to Thai floods: 13B yen for FY12/313B yen for FY13/3(est.)

17

Estimation for Capital Expenditure, Depreciation and R&D[R&D][Capital Expenditure & Depreciation]

* After 09/3 : Include the amount of acquisition of Lease asset by

change of Accounting Standard for Lease Transactions

Billions of yen Billions of yen

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18

Agenda

I.

Financial Results for the First Quarter of the Year Ending March 31,2013

II. Estimation for the Year EndingMarch 31,2013

Ⅲ.Reference Data

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Exchange Rate Financial Impact from Fluctuation by1 yen

13/3Forecast for 2Q-4Q

Net Sales2Q-4Q

Operating Income2Q-4Q

US $ 80yen Approx.5.0

billion yen Approx.0.5

billion yen

EURO 100yen Approx.1.8

billion yen Approx.1.1

billion yen

19

Exchange Rate

13/3 Estimation

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148.7 133.0172.1

142.3167.0 157.4

137.4 125.1

190.1

40.240.4

61.4

66.4

61.663.1

58.864.4

52.2

13.2

13.0

20.211.1 13.4

13.2 18.1

10.8

10.9

6.1

5.26.0

7.1

6.65.7

6.6

5.7 9.2

0

100

200

300

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

Imaging Company Precision Equipment Company Instruments Company Other Business

11/3

12/3

13/3

20

Quarterly Net Sales by SegmentBillions of yen

* Amounts in this statement are rounded down to the hundred million: the sum of breakdown values may not match the total.

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13.98.3

15.6 14.3

31.7

15.6

3.7 2.7

19.6

-0.6

10.6

12.6

8.8 10.5

10.2

-4.1

3.3 4.1

-2.4-2.5-1.5

0.3

-1.0-0.4-1.9

0.5

-1.6

0.9

2.20.8

0.7

0.3

1.21.1

1.1

0.7

-4.3 -5.0-4.4-4.3

-5.2

-20

-10

0

10

20

30

40

50

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

Imaging Company Precision Equipment Company Instruments CompanyOther Business Corporate Expenses

11/3

12/3

13/3

21

Quarterly Operating Income by SegmentBillions of yen

* Amounts in this statement are rounded down to the hundred million: the sum of breakdown values may not match the total.

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