Six-Month Results of the FY2009, ending March 2010 Briefing Session
| Date : | October 30, 2009 |
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| Presenter : | President Takashi Yokokura |
Earnings Recovery Strategies by Each Business Unit
Summary of the Presentation
| 1. | Financial Results for the first half FY2009 | ||||||||
| Net Sales | 43,338 million yen (YoY -22,388 million yen) | ||||||||
| Operating Income/Loss | -1,836 million yen (YoY -4,855 million yen) | ||||||||
| Ordinary Income/Loss | -2,364 million yen (YoY -5,366 million yen) | ||||||||
| Net Income/Loss | -2,369 million yen (YoY -3,851 million yen) | ||||||||
| For the first half FY2009, net sales was 66% of the results in the first half FY2008 due to the impact from strong yen and stagnated economies in Japan, U.S.A and Europe. For the second quarter FY2009, operating income returned to a profit since our strategies such as sales expansion and fixed-cost reduction were gradually showing positive effects. However, these results were not enough to cover the loss of the first quarter FY2009. | |||||||||
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| 2. | Financial Forecast for the FY2009 | ||||||||
| Net Sales | 100,000million yen (YoY -12,666 million yen) | ||||||||
| Operating Income/Loss | 1,700 million yen (YoY 8,644 million yen) | ||||||||
| Ordinary Income/Loss | 500 million yen (YoY 9,826 million yen) | ||||||||
| Net Income/Loss | 200 million yen (YoY 10,192 million yen) | ||||||||
| We expect modest recovery in North America, Asia and other emerging countries in the second half FY2009 while it is assumed that recession will be prolonged in Japan and Europe and need more time to be completely in recovery. However, we aim to greatly improve operating income by launching new products and lowering the break even point. | |||||||||
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| 3. | Progress in Earnings Recovery Strategy (consolidated) | ||
| We have successfully achieved to cut 5.1 billion yen in fixed-cost and 0.5 billion yen in sales-cost (total 5.6 billion yen) by the end of the second quarter FY2009 while the original strategy for the FY2009 was to cut 3.5 billion yen in fixed-cost and 1.8 billion yen in sales-cost (total reduction 5.3 billion yen). Thus, we made an upward revision of the cost reduction strategy for the FY2009, and forecast includes 7.7 billion yen reduction in fixed cost and 1.7 billion yen in sales-cost (total 9.4 billion yen). | |||
Q&A
| Q. | I think it will be very challenging to achieve the Company's forecast. How are you going to accomplish it? |
| A. | We launched highly competitive products in the first half FY2009, and we continue to supply new and brushed up products for the second half FY2009. These products will be growth drivers boosting our revenues and profits. |
| Q. | How are the current business inquiries about the new Eye Care's product “3D OCT,” and what is your sales forecast compared with last fiscal year? |
| A. | We estimate its sales volume in the second half of FY2009 will increase by 1.8 times compared with the first half of FY2009. Also, we estimate net sales for the FY2009 will increase more than 1.5 times compared with last fiscal year. |
| Q. | It is vague to visualize Finetech's restructuring program. When will it be realized? |
| A. | Some projects such as product development, which we are allowed to make decisions, have been already suspended. Regarding projects with our alliance partners, we are currently having some business negotiations, and our direction should be set within this year. We assume that we can see the outcome from Finetech's restructuring program next year. |
-Cautionary Note regarding Forward-Looking Statements-
These materials contain forward-looking statements, including assumptions and projections based on the information available at the time these statements are made. However, please be aware that actual performance may differ from projected figures owing to unexpected changes in the economic environment in which we operate, as well as to market fluctuations.
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