Nikon(US:NINOY)2024-05-12 11:44Financial Data and Key Metrics Changes - Revenue for the previous fiscal year was ¥717.2 billion, with an operating profit of ¥39.7 billion and profit attributable to owners of the parent at ¥32.5 billion, indicating revenue growth but profit decline year-on-year [50] - Free cash flow deficit improved by more than ¥100 billion since last year [2] - Operating profit margin was 16.6%, maintaining a high level compared to the previous year [3] - For the current fiscal year, revenue is forecasted at ¥745 billion, with operating profit expected to be ¥35 billion and profit attributable to owners of the parent at ¥30 billion, indicating revenue growth but profit decline [7] Business Segment Data and Key Metrics Changes - Imaging Products business saw strong sales growth, particularly in China, with new mirrorless products contributing to increased sales volume [49] - Precision Equipment business revenue grew due to higher sales volumes in ArF lithography systems, despite a decline in FPD lithography system sales [52] - Healthcare business revenue grew, driven by Life Science Solutions and contract cell manufacturing [11] - Digital Manufacturing business revenue increased due to the full-year contribution from SLM Solutions, although operating loss expanded due to amortization costs and increased operational expenses [6][66] - Components business faced declines in EUV-related components and optical parts due to postponed capital expenditures [53] Market Data and Key Metrics Changes - The market for digital camera interchangeable lens types is expected to be at 6.1 million units, with a focus on mid to high-end cameras [58] - The Imaging Products business is expected to maintain strong performance, with a forecast of 850,000 camera bodies and 1.35 million lenses sold [59] - The Precision Equipment business anticipates growth in FPD lithography systems, with expectations of 39 units sold, up from 16 units in the previous year [62] Company Strategy and Development Direction - The company is focusing on organic growth while constraining M&A investments, aiming to strengthen management fundamentals [25] - The medium-term management plan targets an operating profit of ¥70 billion for the next fiscal year [21] - The company plans to implement additional share buybacks of ¥30 billion or more [27] - The Imaging Products and Healthcare businesses are expected to drive revenue growth, while the Digital Manufacturing business aims to reduce losses and achieve profitability by FY 2026 [30][67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of one-time costs and market slowdowns on profit, despite revenue growth [20] - The company expects to achieve a firm performance in Imaging Products, Healthcare, and Digital Manufacturing, with revenue growth anticipated [18] - Management emphasized the importance of improving governance capabilities and enhancing shareholder returns [45][19] Other Important Information - The company completed the acquisition of RED, a major cinema camera manufacturer, to expand its business opportunities in the professional video camera market [60] - The company is targeting an annual dividend of ¥60 for the fiscal year ending March 2026, with an increase in the dividend per share expected [16][8] Q&A Session Summary Question: What are the expectations for the Imaging Products business? - The Imaging Products business is expected to maintain strong performance, with a focus on high-end cameras and an increase in sales volume [49][61] Question: How does the company plan to address the losses in the Digital Manufacturing business? - The company aims to reduce losses in the Digital Manufacturing business by expanding sales of large-format metal 3D printers and targeting defense and aerospace markets [44][66] Question: What are the future plans for the Precision Equipment business? - The Precision Equipment business is expected to grow due to increased investments in new IT panels and a strong demand for high-resolution panels [62]