I would like to take this occasion to express particular thanks for the support of our shareholders.
Expanding our businesses and solve the societal challenges within the healthcare, agriculture and infrastructure.
We will accelerate our growth strategies based on the philosophy of Topcon contributes to enrich human life by solving the societal challenges within healthcare, agriculture and infrastructure.
In healthcare, we will address the increase in eye disease resulting from global population aging by working to enhance IoT medical network solutions to improve early detection of diseases and increasing medical efficiency. In agriculture, we will address food shortages resulting from global population growth by enhancing our IT agriculture solutions to improve productivity and quality. For infrastructure, we will enhance IT construction solutions to respond to engineering labor shortages caused by increasing global infrastructure demand.
The Second Mid-Term Business Plan Summary
FY2016 marked the start of Topcon's Second Mid-term Business Plan (FY2016-FY2018).
The Second Mid-term Business Plan focuses on accelerating growth strategies and moving toward the next stage, and aims for ROE 20%.
Numerical targets include net sales of 130 billion yen for FY2016. While this is largely unchanged from the previous year, for FY2018 we will target net sales of 146 billion yen, which represents a compound annual growth rate (CAGR) of 4% for the three-year period of the Mid-term Business Plan. For operating income, we will target 10.5 billion yen in FY2016 and 21.0 billion yen for FY2018, a CAGR of 34%. We expect particular recovery and growth in the US Positioning Business.
The Positioning Company will accelerate growth with IT construction and IT agriculture as dual drivers of business. The Smart Infrastructure Business will improve profitability for its core total station business through cost reductions while also focusing on the i-Construction initiative being led by MLIT to increase sales of IT construction in Japan. The Eye Care Business will use the 3D OCT to develop the diagnosis and screening market while also expanding its business domain by using ifa EMR (electrical medical record) to engage in the remote diagnosis business.
And in addition to our one-time purchase model, we will use cloud system datamining to create a subscription-based business model in all sectors of healthcare, agriculture and infrastructure, including IT construction, IT agriculture, and the Eye Care Business.
- Business strategy of the Second Mid-term Business plan, please refer to the following URL.
- Presentation materials of the Second Mid-term Business plan, please refer to the following URL.
At Topcon, we are dedicated to fulfilling the expectations of our stakeholders and expanding business and solving societal challenges. In closing, we ask for your ongoing support and guidance of our stakeholders.
President & CEO