Q&A of Financial Results for Second Quarter of the Year Ending March 31, 2015
The following includes questions and answers at the conference for the financial results for Second Quarter of the Year Ending March 31, 2015.
Precision Equipment Business
Q. What can you tell us about your Semiconductor Lithography Business and ArF immersion scanners?
A. As planned at the beginning of the current fiscal year, sales of ArF immersion scanners for the current term have been planned mostly in the fourth quarter. And there is no change to our full-year sales plan of 18 units since the start of the fiscal year.
In order to secure sales units in the second half of this fiscal year through the following fiscal year, we attain customer evaluation with the latest model, NSR-S630D. We are also continuing effort for cost reduction.
Q. What is your outlook for FPD Lithography Business and the market of FPD lithography systems for the next fiscal year?
A. Our full-year sales target of 34 units remains unchanged. We anticipate a recovery in demand for equipment for small and medium-sized panels during calendar year 2015, thus we expect sales to exceed our forecast for the current fiscal year (approximately 55 units) by 20% although we do not expect overall sales to reach previous fiscal year levels (approximately 73 units).
We cannot be optimistic about the current competitive situation. However, as the demand for high-definition displays in every size will continue to increase in future, our products have an advantage in terms of high-definition, including high overlay accuracy, and we believe our FPD lithography systems will be able to secure a significant market share.
Imaging Products Business
Q. Please tell us about your outlook for the Digital camera - Interchangeable Lens Type market and your sales forecast.
A. We have revised slight downward our yearly outlook for overall market conditions due to the slow recovery in Europe and China during the first half of this fiscal year. Our outlook for the second half remains unchanged from our previous forecast.
At this time, our sales forecast for the second half also remains unchanged from our earlier estimation.
Q. Please tell us your plans for ensuring profits from the Imaging Products Business in the current fiscal year.
A. Although we have changed our full-year sales forecast for this fiscal year, we will attempt to secure net sales by carrying forward the surplus over forecasted operating profits of the first half to further facilitate sales promotional and advertising expenses in the second half of this fiscal year. In addition, we will work toward meeting our sales targets with regard to net sales and operating income by improving in cost reduction and sales shift toward mid/high-end digital camera - interchangeable lens-type.
Q. Please tell us your outlook for ensuring profit and a surplus in the current fiscal year.
A. Both sales and profit have steadily improved year-on-year as planned for the cumulative second half of this year. In the microscope solutions business, we will continue to strive to secure sales for our leading-edge products as well as those for general and research purposes, in which we continue to maintain a superior position. In the industrial instruments business, we will strive to further develop non-contact 3D measurement systems and X-ray inspection systems for airplanes and automobiles, and to secure sales of electronic component and semiconductor businesses.
Full-year forecasts of sales and operating income remain unchanged.
Q. Please tell us about impact of exchange rates on the second half of the fiscal year.
A. Our previous assumed exchange rates, 100 yen to a US dollar and 135 yen to a Euro, remain unchanged for plans for the second half.
At this moment, financial impact on our net sales from fluctuation by 1 yen, it is expected to be approximately 2.2 billion yen for US dollar and approximately 800 million yen for Euro. Impact on our operating income is expected to be approximately 200 million yen for US Dollar and approximately 400 million yen for Euro.
Q. Please tell us about your Medical Business.
A. As for progress of our Medical Business announced in our medium-term management plan in June 2014, we have completed an investment of 24 million US dollars in a US venture company, which is a part of a total investment of 30 million US dollars for the collaborative business agreement. We will strive to develop technologies and to construct business plans for diagnostic services and production of bio-microarrays. We have already started shipping prototypes of examination/diagnostic equipment. As for the Corporate Venture Capital (CVC) that approach mainly for collecting information on medical business field, we intend to enter into a contract with several companies within this fiscal year.