This is Tokunari. Thank you indeed for your kind attendance. Please turn to slide three. First, I'd like to go through the summary for FY 2021 March for the full-year results. Revenue was JPY 451.2 billion, a big decline year-on-year basis. Of the JPY 139 billion, Imaging Products accounts for about JPY 75 billion due to the market shrinkage and COVID-19. Precision Equipment Business was down about JPY 60 billion, mainly due to the postponed installation of FPD systems. Operating profit was negative JPY 56.2 billion. Excluding the one-time costs, including impairment of fixed assets, as much as JPY 55.6 billion, the loss was limited at JPY 600 million. Net profit was negative JPY 34.4 billion. As shown in the bottom, as of August last year, we had assumed for the operating loss of JPY 75 billion and net income loss of JPY 50 billion. As you see here, we were able to reduce the loss numbers respectively. Please turn to page four. This graph shows the details of operating profit. The far left bar shows our forecast back in August. The number was negative JPY 75 billion, and you can see the changes we had since then. This JPY 75 billion included risk buffer of JPY 20 billion, structural reform cost for Imaging Products of JPY 5 billion, the total of JPY 25 billion. To its right, the actual consists of three major factors: JPY 20 billion improvement coming from the Imaging Products, in particular, surpassing the sales forecast as well as the improved product mix. JPY 12 billion from the advanced business cost reduction. JPY 14.8 billion from the other expense control and the COGS reduction. Each operating profit was pushed up, resulting into the substantial loss of JPY 600 million, almost breakeven. In contrast, we had a negative of JPY 25.9 billion for the impairment of fixed assets, a part of our efforts to improve the company balance sheet, minus JPY 25.3 billion for disposal and the write-down, and minus JPY 4.3 billion for restructuring related expenses. With this one-time cost item, a total of minus JPY 55.6 billion being the major factor, full year operating loss became JPY 56.2 billion. Despite the much larger impairment and the write-down losses, much bigger than the risk buffer of JPY 20 billion, we were able to compress the operating loss vis-a-vis the plan. This can be explained by the increased revenue and profitability, as well as the much larger cost reduction we carried out. This slide five shows the details of the one-time cost I have just mentioned, such as impairment, disposal, and write-down on the quarterly basis. Please turn to slide six. This shows major items for the consolidated results for FY 2021 March. As shown in the right end, we surpassed the previous forecast in all the items, which we announced back in February. Please pay attention to the second row from the bottom. Free cash flow now became positive of JPY 22.9 billion. This was realized by the sales of securities we owned and others. Next slide. This slide shows the actual by segment. Impairment, disposal, and the write-down had a rather major impact. Except for the Precision Equipment Business, all the segments show negative results. Please look at the second row from the bottom. Corporate P&L, non-attributable to any reportable segments. This includes the corporate indirect expense and others. Though it was negative JPY 16.1 billion in the previous fiscal year, but with the business efficiency initiatives carried out, it now shows a substantial improvement of JPY 7.5 billion year-on-year. In this section onward, I will explain the results by segment for FY 2021 March. The first segment is Imaging Products Business. As shown in the top right, it grew JPY 5.2 billion compared with the previous forecast we made back in February. Since the third quarter onward, the camera market itself recovered. On top of that, we had a rather successful launch of new mirrorless products, Z 6II and Z 7II. All in all, operating profit grew to JPY 4.3 billion from the previous forecast. As shown in the bottom right, we slashed JPY 27 billion from business costs, including the advanced business cost reduction of JPY 12 billion. The cumulative reduction over the past two years became JPY 52 billion. With this trend, we do believe it is quite possible to realize the planned cost reduction as much as JPY 63 billion scheduled to be executed during the mid-term management plan. We have just one year to go. In the last fiscal year, Imaging Products Business had an operating loss of JPY 35.7 billion. If we exclude the one-time cost such as impairment, it would become negative JPY 12 billion. As for the current fiscal year, we will further advance our structural reform efforts and put focus on the products for pros and hobbyists to realize positive operation profit. Slide nine shows the Precision Equipment Business. Bottom left shows the market size and Nikon's sales in units. FPD, the restricted installation challenge is still going on in China, but we succeeded in selling a total of 29 units, up one unit from the February forecast. As shown in the top right, for the entire Precision Equipment Business, the revenue was down JPY 5.3 billion from the February forecast. The major reason for this is the delayed acceptance test of one ArF immersion system pushed out into the current fiscal year. Operating profit, with this postponement, the number went down by JPY 2.6 billion. May I remind you that we secured the profit of JPY 1.4 billion for the full year basis. Please turn to Slide 10, Healthcare. Healthcare business had growth both in revenue and profit compared with the February forecast. Both biological microscopes and retinal diagnostic imaging systems are now on the recovery track since Q3. Operating profit was negative for the full year, but excluding the fixed asset impairment of JPY 2.5 billion, the loss would have been hovering around JPY 500 million. Slide 11 shows Industrial Metrology and others. Revenue went down year-on-year. This was caused by the sluggish CapEx on the side of automotive customers, particularly. Operating profit was a positive JPY 2.7 billion in substance, excluding the one-time cost. I will explain our forecast for the current fiscal year, ending March 31, 2022. Slide 13 shows the highlights. Revenue, JPY 510 billion, up JPY 58.8 billion. We forecast to expand sales in all segments driven by recovery from COVID-19 pandemic. Imaging Products. On top of the market recovery with the mirrorless sales expansion, revenue here is expected to grow JPY 14.8 billion. Precision Equipment revenue is expected to grow to JPY 20.3 billion, driven by the greater sales volume in small and mid-sized panels for FPD. Operating profit is expected to become positive of JPY 20 billion, getting away from the loss we had in the previous fiscal year. We aim to be profitable in all segments. We do expect to see revenue recovery in all businesses. We can also expect to see a benefit of a smaller depreciation burden. We do expect all the segments turning positive. Profit attributable to owners of the parent is forecast to be JPY 16 billion. Dividend forecast. With the expected earning recovery and profit this year, as well as the expected earning recovery going forward, we set the annual dividend increase of JPY 10 year-on-year. Slide 14 shows the major items for the full year, including the numbers from the previous fiscal year. I have already explained the major points. Now I would like to explain the revision for business segments we have made. Digital Solutions BU, Customized Products BU, and Glass BU used to belong to Industrial Metrology and others, now belongs to Components Business. These three business units are engaged in the same solution business in terms of delivering parts and components to our customers. Please move on to Slide 16. This shows our full year forecast by segment. To help you, in the yellow box, the top number shows revenue, and the bottom number shows operating profit. From the top, Imaging Products Business. Operating profit there is JPY 5 billion. Precision Equipment Business, JPY 17 billion. Healthcare Business, JPY 1 billion. Components Business, newly created, JPY 8 billion, and Industrial Metrology and others, JPY 3 billion. As you've seen, we intend to become profitable in all the segments. Second row from the bottom, corporate P&L, not attributable to any reportable segment, is expected to improve by JPY 2.1 billion year-on-year. I will go segment by segment for the full year forecast. Slide 17, Imaging Products Business. Revenue is expected to be JPY 165 billion, up about JPY 15 billion year-on-year. As shown in the bottom left, the market is now on a recovery trend. DSLR cameras are expected to grow as a whole by 5% year-over-year. As shown in the top right in essence, Nikon will not chase after the number of units sold. Rather, we will make a further shift toward higher-end and mid-range models, while keeping an eye on the pros and hobbyists market. To be specific here, we plan to further expand the lineups of mirrorless bodies and lenses. We will aim at improving unit price and profit. Recently, we are observing the global semiconductor is in a tight supply-demand situation. There is a concern for a possible disturbance in the electronic components and others. We need to look at possible alternatives. We will make efforts for stable procurement. Business costs are to be reduced JPY 11 billion in this fiscal year. We plan to reduce the cost by as much as JPY 63 billion for three years to come. Imaging Products Business. This has caused concerns with our stakeholders and customers. In this fiscal year, we will go for a profit, and we will meet with your expectation here. Slide 18 is about Precision Equipment Business. Revenue is JPY 205 billion, up JPY 20.3 billion year-on-year. FPD, CapEx is still continuing with customers. Both mid, small, as well as large size panels orders for us seem to be rather firm. COVID-19 postponed the installation of FPD systems, but now it will be progressing smoothly, one after another. Next, SPE. Sales of refurbished systems, primarily in KrF and i-line, to increase, but new systems will decline during this transitional period in the customers' CapEx. In semiconductor business, it now appears that there will be a firm demand in the near future among the major U.S. customers. We'll make a good preparation now so that we can make profit several years from now. We need to secure new, stable customers. With all these points in mind, Precision Equipment business operating profit is expected to be JPY 17 billion. Please look at slide 19. Healthcare business. Revenue for fiscal year ending March 31, 2022 is JPY 70 billion, up JPY 7.2 billion year-on-year. Biological microscopes, the Americas market recovery will contribute to the growth in our revenue. Retinal diagnostics imaging system is expected to hit a new record in sales following the previous fiscal year. Cell contract manufacturing will finally start its commercial production this fiscal year. With all these points in mind, for the entire Healthcare business, we expect a record-high revenue. Operating profit is expected to be JPY 1 billion. This is going to be the very first ever operating profit in the history of Healthcare. Next slide. This slide explains the Components Business that we have newly created. Starting from the current fiscal year, we decided to disclose its numbers as an independent segment because we can expect to generate substantial amount of profit, particularly in the EUV. As shown in the bar graph, expected revenue in the first year is JPY 35 billion, and expected operating profit is JPY 8 billion. Optical components, EUV-related components, and optical parts, encoders, and photomask substrates for FPD, every one of them will expand its sales. Particularly, EUV-related Components Business is expected to progress firmly. We believe it has entered the phase of revenue generation. This is the last slide for numbers. This is Industrial Metrology and others on slide 21. Others do include our production subsidiaries and others. For the full year, revenue is expected to be JPY 35 billion, operating profit, JPY 3 billion. This segment is also expected to become profitable. In the current fiscal year, we do expect our customers, namely electronic components and automotive-related CapEx, to recover. We expect our sales will expand in image metrology system, X-ray inspection systems, and non-contact metrology systems. Operating profit is expected to make a firm recovery, and we plan to be profitable. That's all for my part. Lastly, I would like to make a summary about the previous fiscal year. We were greatly affected by COVID-19, particularly in the first quarter. Revenue, unfortunately, went below JPY 500 billion. Operating profit also suffered as much as minus JPY 50 billion. Imaging Products Business, in particular, as President Umatate explained, we advanced its structural reform. We made an effort in improving our balance sheet. We tried to become lean. With this done, we believe our future risk has been reasonably reduced. For the outlook for the future, particularly for the current fiscal year, we will make an effort to make all the segments to become profitable, including the newly created Components Business. We aim at JPY 20 billion for the corporate operating profit and JPY 16 billion for profit attributable to owners of the parent, we would like to make this current fiscal year to be a year to lead us to the sustainable journey yet to come. I would like to solicit your continued support with our investors and all the people concerned. Thank you indeed for your kind attention. I am pleased to update you on the progress we are making in our medium-term management plan. The current fiscal year is the last year of the plan. Slide 23, please. The goals of the medium-term management plan is to build a foundation for mid to long-term growth and to achieve ROE of 8% or higher. Of these two, we are making a solid progress building a foundation for growth. The Components Business, newly created, is expected to enter a revenue-making phase this fiscal year, thanks to the efforts we made in optical components and EUV-related components. The Material Processing Business is making a good progress in finding our customers by leveraging open innovation and the sales networks of our partner vendors. For business scaling, we have already started initiatives in reinforcing the organization by creating new units. While maintaining discipline on investment, we intend to accelerate more in our M&A strategy. In contrast, as for 8% or higher ROE, it seems to be rather difficult to achieve this goal in the current fiscal year, which is the last year of the medium-term management plan. Yes, there were external factors involved, but it is quite regrettable that we simply cannot make it. I would like to offer my sincere apologies here. Being a listed company, this is something Nikon should be able to succeed, generating stable cash returns in excess of capital costs. By implementing these strategies I am going to explain now, Nikon will try to achieve this goal of 8% ROE as soon as possible. We will stick to our basic philosophy to strengthen business profitability and acquire growth engines. We will strengthen our corporate values by raising our capability to make money. This shows, slide 24, shows the progress in a glance of our business strategy, which I will talk today. I will particularly expand on the core businesses, Imaging Products Business and the Precision Equipment. I will also explain Components Business and Material Processing Business in additive manufacturing. I will cover them later one by one. In the long-term growth areas, we have vision systems, robotics. Here, we are developing sensors, robotics, smart cameras, so that we can contribute to the digital transformation and automation which are advancing in the society and the pharmaceutical industry. In the Healthcare domain, we will expand our profit by selling biological microscopes and retinal diagnostic imaging systems. We will deliver growth by expanding profit by offering drug discovery, support services and contract cell manufacturing, and others. Slide 25, please. Now I would like to explain Imaging Products and Precision Equipment business areas one by one. In Imaging Products business, we will carry our structural reform efforts as planned. There is no change as for our policy to focus on pros and hobbyists. In camera business, we will grow mirrorless and Z systems. We would like to deliver them to professionals and hobbyists both at home and abroad. By the end of the current fiscal year, we will launch flagship body Z9, expand the lineups of the Z mount lenses. We plan to expand our software to assist expression in video editing and filming assistance and stronger integration with SNS. As for investment for R&D, we continue our investment in order to improve our competitiveness and to gain support from our target customers. We intend to extend the technology we have acquired from our long history of camera business to B2B. Nikon should offer its unique image experience, we should enter 3D and contents business. In strengthening the business fundamentals, by cutting JPY 63 billion out of business costs, we can still be profitable even when revenue is less than JPY 150 billion, the level we had in the previous fiscal year. We still can generate profit. To be specific here, we plan to work on optimizing more than 2,000 employees. We'll also consolidate our production sites and sales companies. In the previous fiscal year, we scrutinized our future risk factors, we took off some facilities and inventory from the balance sheet, as much as JPY 30 billion. By executing those actions firmly, we would like to generate profit this year. Slide 26, please. Here, I'd like to talk about Precision Equipment business. Market is quite alive with DX or digital transformation. We need to further strengthen our products. We need to diversify our earnings. At the same time, we need to look into the future to identify the kind of technology and products to be needed. By doing so, it is imperative for us to place this Precision Equipment business into our core business. In FPD lithography business, we will endlessly seek after higher customer values in terms of higher resolution and productivity. In the semiconductor lithography systems, we are leveraging a business with core customers in order to get away from the situation where we depend upon just one company. We started working on diversifying our customer base both at home and abroad. We are now getting some good results from those stable customers. Someday in the future, we will enter the enabling technology area of lithography. We are also expanding our service business area. Here, we are utilizing the customer's equipment data. We are hoping to identify the possible needs of relocation, modification, and improvement. In parallel, we are now putting more focus on refurbishment and reuse business. Furthermore, we are exploring possible opportunities in the lithography and peripheral business. Here, we plan to integrate our strong precision control and high-precision measurement technology. We are already getting some results in this area. We are getting some results with our Litho Booster and macro inspection devices, AMI, which can contribute to improving yield for advanced processes for semiconductor manufacturers. Last year, one of the major issues we had to address was the risk related with the overseas travel restriction. We enhanced our remote support. We have helped those local engineers to deliver services for installation and initial operations of the equipment at the customer sites. We are now expanding our overseas operations. As of the end of March 2021, we impaired JPY 20 billion plus in fixed assets and inventories based upon the future risk scrutiny we conducted. By executing those measures as firmly as possible, we will try to expand earnings in our lithography systems, services, and the lithography in the peripheral areas. We try to have a good balance in our revenue portfolio. Slide 27, please. In growth areas, I will expand on two areas. First is Components Business. Here in our efforts to develop customer needs, we are now going to generate earnings starting in the current fiscal year. While generating revenue in optical and EUV-related components, we plan to develop key components which we can expect to get high market share. Going forward as well, we would like to offer the most appropriate solutions for our customers, who are asking for more diversified and sophisticated requirements. By doing so, we would like to aim at further growth in our Components Business. Another area is the Material Processing Business. By delivering the special processing in a short time with lower cost, but with higher precision, we would like to build an innovative ecosystem which will solve customers' big issues. Here, Nikon would like to create new markets and new industries in the domain of monozukuri or manufacturing excellence. Here, now I'd like to share two specific cases we are making this year. The first case is Nikon was selected to participate in contract processing for small and mid-sized satellites. It is said that going forward, as many as 1,000 satellites will be launched per year in this small and mid-sized satellites area. There is a need to make components which are light but complex in geometry. Nikon acquired an American company, Morf3D, in March. We are now planning to get contracts with Boeing and others in aerospace industry for outsourcing business. In regard to riblet processing for the reduction of the fluid resistance, we have entered agreement with an Australian company called BST or Bionic Surface Technologies. BST is an advanced solution company based upon its fluid dynamics and expertise. We are going to combine simulation technology from BST and our optical processing technology to deliver riblet-based solutions. As a part of this initiative, we are going to outsource riblet processing to Sendai Nikon, one of our subsidiaries, which used to make cameras. By applying this riblet processing to the impellers of the home vacuum cleaners as well as to jet engine fan blades, we should be able to improve fuel efficiency and reduce carbon dioxide and make our contributions to realizing the sustainable society. Slide 28, please. We are making steady efforts in the reforms to support management with long-term viewpoints. We will advance business process reforms. We will reduce the total cost of more than JPY 80 billion, which accounts for more than 15% in the total revenue. Major areas for this are the head office and the procurement as well as image-related cost. As for R&D, I, as CTO, keep an eye on the entire R&D themes, and I am responsible to allocate resources. For strengthening our monozukuri foundation, we decided to appoint a CMO, chief manufacturing officer. With a CMO, we will gather and centralize information and functions. As for shifting human resources, in Japan, we will reassign 1,000 more people, mainly from engineering to growth areas. In overseas, we will work on optimize the workforce covering 1,500 or more employees. We need to be firm and determined in this process. As for the balance sheet, in order to minimize future restructures and improve liquidity of the assets we own, we have already liquidated a total of JPY 100 billion-plus. There's no change as for our basic thoughts on the side of midterm and the long-term capital allocation. We are still focusing on stable dividends, and the total shareholders return ratio is 40% or more. We intend to sustain our investment up to 40% for strategic investment. Lastly, for corporate governance, we established a nomination committee with the outside director as chair. We will make further efforts to improve successor training plans. Excuse me. We will make further efforts to improve successional training plans. Outside directors, Mr. Hirota, with the general chemical manufacturing background, who also had served as the chair of the board of directors of a Precision Equipment company. Mr. Murayama, he has a background in general heavy equipment manufacturing company. We have Ms. Yamagami, who is a female attorney. While focusing on qualification, we are trying to expand diversity. Now, outside directors account for about 45%. We are here to make further efforts for governance, which will help us to further improve our corporate values. My last slide, summarizing the points I have just explained. Starting from the left, we have to fully grasp the changes going on in our management environment while addressing issues and challenges to strengthen the management foundation. By doing so, we need to make the whole existing business operations as profitable. By engaging ourselves into the three long-term growth areas, ultimately, we should be able to offer our values to the society. I believe this is going to be Nikon's corporate mission. I promise to you that we are all united within Nikon and to address those issues and challenges. You'll see it more on the slides after this. You will find useful information there, I hope, for you to understand our basic policies for sustainability. Some of the slides we use are when we announced the medium-term management plan, just for your reference purpose. This concludes my explanation. Thank you indeed for your kind attention.
Loading workspace