Nikon(NINOY) - 2023 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q1 2023 was JPY 145.6 billion, an increase of JPY 13.4 billion year-on-year, while operating profit was JPY 15.3 billion, and profit attributable to owners of the parent was JPY 11.8 billion, showing a decline in profits compared to last year due to the absence of a one-time profit from a land sale [1][2][3] - The corporate profit and loss not attributable to any reportable segments declined by JPY 4.9 billion mainly due to the disappearance of capital gain from last year's land sale [3] Business Segment Performance - Imaging Products Business revenue grew by JPY 11.2 billion year-on-year to JPY 61.2 billion, with operating profits increasing by JPY 4.4 billion to JPY 13.6 billion, driven by a shift to high-end models and a weaker yen [3][4] - Precision Equipment Business revenue was JPY 41.4 billion, a decline of JPY 10.4 billion year-on-year, with operating profit falling by JPY 9.4 billion to JPY 4 billion due to lower unit sales compared to the previous year [3][4] - Healthcare Business saw strong sales in biological microscopes and retinal diagnostic imaging systems, leading to year-on-year growth in both revenue and operating profits [4][14] - Components Business experienced strong sales of optical parts for semiconductor-related products, resulting in increased revenue and operating profit [4][15] - Industrial Metrology Business reported increased sales of CNC video measuring systems, contributing to a year-on-year revenue increase [4][16] Market Data and Key Metrics Changes - The Imaging Products Business faced challenges in China due to lockdowns, but solid sales in other regions compensated for this stagnation [17] - The Precision Equipment Business is expected to see deferred revenue and operating profits due to customer requests for delayed installations [12][13] Company Strategy and Development Direction - The company is focusing on expanding its product lineup, particularly in the mirrorless camera segment, while continuing to support DSLR cameras [10] - The Medium-Term Management Plan aims to strengthen human capital and sustainability strategies, with a focus on achieving revised profit forecasts despite external uncertainties [18][19] Management Comments on Operating Environment and Future Outlook - Management acknowledged risks such as parts procurement constraints, logistics disruptions, and economic slowdowns but emphasized the company's strong earning power and restructuring efforts [17][18] - The full-year forecast was revised upward for Imaging Products, reflecting positive Q1 performance, while other segments remained unchanged due to external uncertainties [7][8] Other Important Information - The annual dividend forecast remains unchanged at JPY 40 [8] - The company plans to continue its DSLR business despite media reports suggesting otherwise, focusing on mirrorless camera development [10] Q&A Session Summary - No specific questions or answers were provided in the document regarding the Q&A session [20]