• All Pages (38pages) [1,587KB]
• Ⅰ TOPCON WAY (2pages) [177KB]
• Ⅱ Mid-Term Business Plan Background (4pages) [121KB]
• Ⅲ Mid-Term Business Plan Group Organization (6pages) [231KB]
• Ⅳ Mid-Term Action Plan (3pages) [106KB]
• Ⅴ Growth Strategies by Segment
  • 　　　　　　　　　　　　　　　(Positioning BU) (5pages) [334KB]
  • 　　　　　　　　　　　　　　　(Eye Care BU) (5pages) [385KB]
  • 　　　　　　　　　　　　　　　(Finetech BU) (6pages) [315KB]
• 　　Ⅵ CSR Management (2pages) [354KB]

Summary of the Presentation

1. TOPCON WAY

On April 1, Topcon Corporation established the TOPCON WAY representing the company’s most significant set of common values through the restructuring and integration of its Business Philosophy, Management Policy and Code of Business Conduct.
 
2. Background to the Mid-Term Business Plan
 
(1) Currency exchange impact (impact on net sales and operating income)
We performed a currency exchange impact simulation by recalculating our fiscal 2010 earnings at currency exchange rates in effect in fiscal 2007.
The result was a currency exchange impact of -¥17.5 billion to net sales and -¥8.2 billion to operating income. The impact was greatest on the Positioning Business.
 
(2) Main Product Volumes
We compared fiscal 2010 product volumes with those from fiscal 2007.
Fiscal 2010 volumes for these major products have returned to fiscal 2007 levels: total station and GPS products in the Positioning Business, and retinal cameras and 3D OCT products in the Eye Care Business.
 
(3) Selling prices decline
We found that selling prices have fallen by an average of about 2% over the three-year period beginning in fiscal 2007.
Given this situation, we reached the conclusion that establishing a management structure that is unaffected by the external environment is an urgent task that we must tackle as part of our structural reforms. The issues that we are presently working on as projects constitute the initiatives addressed in our current mid-term business plan. They are: countries/regions (focus on emerging nations), businesses/sectors (cultivate growth operations by focusing on new businesses and sectors), products (provide TM-1 products and low-cost products primarily in emerging markets), production (low-cost products and a shift to overseas production in order to dissipate currency exchange risks), and procurement (promote cost cuts, including overseas procurement).
 
3. Target Group Form Under the Mid-Term Business Plan
4. Mid-term Action Plan

Corporate Structural Reforms
 
<Overall cost reduction strategy>
(1) Reduction in cost of goods sold
The main initiatives are strengthening VA/CD efforts and overseas procurement.
 
(2) Optimization of workforce
We have conducted significant personnel reductions over the past two years, but we are planning considerable future personnel cuts under the mid-term business plan. We are also planning to reduce production bases in Japan.
 
(3) Business process reforms
With the introduction of ERP, we are targeting substantial results in the final fiscal year of the mid-term business plan.
 
<Reduction target: ¥10 billion>
We launched our corporate structural reforms last fiscal year. Our plan is to achieve ¥10 billion in reductions in the two-year period that runs from now until fiscal 2012.
 
<Planned values in the final fiscal year of the mid-term business plan>
Our overseas procurement ratio will increase from 11% (fiscal 2010) to 30% (fiscal 2013), and in fiscal 2013 we will raise production efficiency by 40% compared to fiscal 2010.
Our plan is for emerging nations to account for 40% of net sales in fiscal 2013, the final year of the mid-term business plan. We expect slightly greater volumes, in part because of an increase in low-cost products. Additionally, we anticipate our overseas production ratio will be approximately 50%.

5. Growth Strategy by Business Segment

(1) Positioning Business
With respect the benefits of integrating with Sokkia Topcon Co., Ltd., the integration of organizational and production-related structures is complete. Looking ahead, we hope to achieve significant results with new products that generate synergy. In the construction market, we will work to promote the popularization of machine control products for the automation of construction sites, focusing on emerging nations. In the area of precision agriculture, we are targeting OEM arrangements and expanded sales in emerging nations. However, market growth is exceeding expectations, so we believe that it will be necessary for the Company to take some sort of action in the future. As far as mobile measurement and 3D measurement are concerned, the market is small at present, but we intend to develop it. Concerning expansion in emerging nations, we will establish sales companies in the Middle East, Africa and India and work to strengthen our sales.
 
(2) Eye Care Business
The supporting market for 3D OCT products is growing, so in addition to enhancing our product lineup, we will expand the business by offering a full range of commonly used equipment for emerging nations and the screening market. In the area of surgical equipment, we have entered the field of minimally invasive treatment with multi-pattern lasers. We plan to further expand the business in the future through the introduction of new products. With respect to IT solutions, we have utilized cloud computing to enter the billing business in the U.S., and we would like to further expand this business in the future. We will increase production of low-end products in China.
 
(3) Finetech
Our plan is to achieve growth in substrate-related products with steppers for 3D bump inspection and patterning. In the environmental/eco sector, we will develop LED-related measurement devices and wafer-level chip defect inspection systems as areas of strength. In terms of EB and projector products, we will focus on combined, compact SEM systems and also begin production in China of ultra-compact pico projectors. We expect the pico projector business to grow beginning from the second half of this fiscal year.
 

Q&A

  Q. It seems that the Positioning Business must achieve steady sales growth in order for the Company to reach the
       targets set out in the mid-term business plan. In your remarks, you said that the company must take action of some
       kind with regard to precision agriculture. What are your specific thoughts?

　A. On the product front, we are at a level where we can fully match our rivals, but we are weak when it comes to sales. At
       present, are assiduously studying ways to strengthen our sales capabilities.