DateMay 12, 2023
PresenterSatoshi Hirano, Representative Director, Chairman of the Board of Directors
Takashi Eto, Reprentative Director, President and CEO

Q&AFor PDF file, please refer to “presentation material (with script)” on the previous page.

Common subjects

  • What are the numbers in the operating income breakdown for FY2023?

    We expect sales volume and product mix to be positive by 2.0-3.0 billion yen, fixed costs to be negative 1.5-2.5 billion yen, FX effects to be negative 1.5 billion yen, cost reduction to be positive several hundred million yen, and the increase of component and logistics costs to be zero.

  • What impact do you expect the price increase will have?

    As we increased our prices earlier in FY2022, we expect that the YoY impact of the price increase will be limited in FY2023.

  • What is the extent of the order backlog at the start of this fiscal year?

    By the conclusion of the first half of FY2022, order backlogs reached their highest point and subsequently started to decline. However, a small backlog still remains. We expect the situation will normalize by the end of FY2023.

  • The projected decline in operating profit for FY2022 is a modest 500 million yen. Considering this, wouldn’t it have been necessary to use it as a guidance for profit reduction?

    If we exclude the impact of foreign exchange, it would be nearly flat.

  • What is your perspective on the macroeconomic assumptions in the current mid-term plan for FY2024 and beyond?

    While forecasting the macro environment is challenging, the assumptions in the current mid-term business plan suggest the economy will start to recover in FY2024.

Positioning Company

  • Why is the expected CAGR projected to be lower than in previous mid-term plan, which encompasses the period affected by the COVID-19?

    The figure was high in FY2022 and is expected to decline in FY2023 due to the economic downturn. A CAGR of 5% from FY2022 to FY2025 should not be regarded as a low figure.

  • What are your expectations regarding the business environment in both the infrastructure and residential sectors?

    While there is no strict separation between infrastructure and housing, we expect a decrease in operating profit in former Smart Infrastructure Business, which primarily focuses on housing-related products, to below 4.0 billion yen in FY2023 compared to 5.0 billion yen in FY2022. On the other hand, performance in the infrastructure business, mainly conducted by former Positioning Company, is good, and we expect it to compensate for the decline.

  • The former Positioning Company experienced high revenue levels in Q4, but the Positioning Business is expected to decline in FY2023. Is there a clear shift in the overall trend?

    Shipments related to lasers, which are associated with housing demand, have declined. However, we expect continued growth in shipments related to infrastructure.

Eye Care Business

  • What was the amount of the one-time cost incurred for Eye Care Business?

    Please consider it to be in the range of 0.5 to 1.0 billion yen.

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.