Q3 2025 Nikon Corp Earnings Call
I would like to explain our third quarter financial results and the full year and our forecast for the fiscal year ending March 31st 2025.
[Company Representative]: Conference today. I would like to explain our Q3 financial results and the full year forecast for the fiscal year ending 31 March 2025. The top half of the presentation shows the key points for Q1 to Q3 cumulative results and the bottom half for the Q3 alone. For the cumulative results from Q1 to Q3, the nine months from April to December showed a decrease both in revenue and operating profit compared to the previous year. This was due to the impact of a decrease in sales of semiconductor-related business in the Precision Equipment Business and the Components Business, as well as the recognition of one-time costs of approximately JPY 5 billion due to the relocation of the headquarters.
[Company Representative] (Nikon): Conference today. I would like to explain our Q3 financial results and the full year forecast for the fiscal year ending 31 March 2025. The top half of the presentation shows the key points for Q1 to Q3 cumulative results and the bottom half for the Q3 alone. For the cumulative results from Q1 to Q3, the nine months from April to December showed a decrease both in revenue and operating profit compared to the previous year. This was due to the impact of a decrease in sales of semiconductor-related business in the Precision Equipment Business and the Components Business, as well as the recognition of one-time costs of approximately JPY 5 billion due to the relocation of the headquarters.
The top half of the presentation shows the key points for Q1 to Q3 cumulative results in the bottom half for the third quarter alone.
For the cumulative resulted from Q1 to Q3, the nine months from April to December show that equally as both in revenue and operating profit compared to the previous year. This was due to the impact of a decrease in sales of semiconductor related business in the precision equipment business and the components business as well as the recognition of.
The onetime costs of approximately 5 billion yen due to the relocation of the headquarters.
The bottom half of the presentation. The third quarter alone October to December results also showed a decrease both in revenue and operating profit compared to previous year, just like the accumulative results. This was due to the decline in sales in the semiconductor related businesses the impact of the absence of sales of <unk> 10.
[Company Representative]: The bottom half of the presentation, the third quarter alone, October through December results also showed a decrease both in revenue and operating profit compared to the previous year, just like the cumulative results. This was due to the decline in sales in the semiconductor-related businesses, the impact of the absence of sales of G10.5 FPD lithography system recognized in the previous year, and the one-time cost of approximately JPY 2.1 billion, including restructuring costs for the Industrial Solutions Business and impairment losses on idle assets due to reorganizing bases. Slide four now shows the cumulative results from Q1 to Q3. As for cash flow, although the operating cash flow for the third quarter was nearly JPY 40 billion, there were large expenditures in the investment cash flow related to the acquisition of RED and the relocation of headquarters, resulting in negative free cash flow.
[Company Representative] (Nikon): The bottom half of the presentation, the third quarter alone, October through December results also showed a decrease both in revenue and operating profit compared to the previous year, just like the cumulative results. This was due to the decline in sales in the semiconductor-related businesses, the impact of the absence of sales of G10.5 FPD lithography system recognized in the previous year, and the one-time cost of approximately JPY 2.1 billion, including restructuring costs for the Industrial Solutions Business and impairment losses on idle assets due to reorganizing bases. Slide four now shows the cumulative results from Q1 to Q3. As for cash flow, although the operating cash flow for the third quarter was nearly JPY 40 billion, there were large expenditures in the investment cash flow related to the acquisition of RED and the relocation of headquarters, resulting in negative free cash flow.
The top graph and system recognized in the previous year and the one time cost of accurately $2 1 billion yen, including restructuring costs for the industrial solutions business and impairment losses on idle assets due to the.
We organizing basis slide photo shows the cumulative results from Q1 to two three as for cash flow, although the operating cash flow and for the third quarter was nearly 41 billion yen there wasn't a large expenditures and the investment cash flow related to the acquisition of Red and the relocation of headquarters.
Resulting in negative free cash flow.
Slide five shows the cumulative results from Q1 to Q3 by segment.
[Company Representative]: Slide five shows the cumulative results from Q1 to Q3 by segment. In the yellow box, the top row of each segment shows revenue and the bottom row shows operating profit. I will now explain details segment by segment. First, the Imaging Products Business. Revenue increased by JPY 13.7 billion year-over-year to JPY 235.6 billion, and operating profit increased by JPY 900 million to JPY 43.8 billion. Sales increased thanks to the launch of new products Z6III and Z50II, leveraging the cutting-edge technology of Z 9. Sales of digital camera interchangeable lens type increased by 30,000 units year-over-year to 670,000 units, and interchangeable lenses increased by 40,000 units to 1.02 million units. The operating profit margin was maintained at 19%, the same level as the previous year.
[Company Representative] (Nikon): Slide five shows the cumulative results from Q1 to Q3 by segment. In the yellow box, the top row of each segment shows revenue and the bottom row shows operating profit. I will now explain details segment by segment. First, the Imaging Products Business. Revenue increased by JPY 13.7 billion year-over-year to JPY 235.6 billion, and operating profit increased by JPY 900 million to JPY 43.8 billion. Sales increased thanks to the launch of new products Z6III and Z50II, leveraging the cutting-edge technology of Z 9. Sales of digital camera interchangeable lens type increased by 30,000 units year-over-year to 670,000 units, and interchangeable lenses increased by 40,000 units to 1.02 million units. The operating profit margin was maintained at 19%, the same level as the previous year.
In the yellow box the top row of each segment shows revenue and the bottom royalty shows the operating profit I will now explain details segment by segment.
First the imaging products business revenue increased by $13 7 billion yen year on year to $235 6 billion yen and operating profit increased by 900 billion yen to $43 8 billion.
Sales increased thanks to the launch of the new products, the <unk> III and <unk> 52 level is in the cutting edge of technology of Jeannine sales of digital camera interchangeable lens type increased by 38000 units year on year, and two 670000 units and interchangeable lenses increased.
By 40000 units to one 2 million units. The operating profit margin was maintained at 19% the same level as the previous year. The imaging products business continues to be a major pillar of Nick on overall earnings. Thanks to our strategy focused on mid to high end models for our professionals and harvest next day.
[Company Representative]: The Imaging Products Business continues to be a major pillar of Nikon's overall earnings, thanks to our strategy focus on mid- to high-end models for professionals and hobbyists. Next, the Precision Equipment Business. Revenue was down by JPY 29.6 billion year-over-year to JPY 124.9 billion, and operating profit was down by JPY 11.7 billion to a loss of JPY 600 million. The unit of sales of new semiconductor lithography systems was 6 units, down 16 units from the previous year. On the other hand, sales of FPD lithography systems for high-resolution panels increased by 15 units from the previous year to 26 units. The Precision Equipment Business as a whole saw a decline in both revenue and operating profit as the increase in FPD revenue could not offset the decrease in semiconductor revenue.
[Company Representative] (Nikon): The Imaging Products Business continues to be a major pillar of Nikon's overall earnings, thanks to our strategy focus on mid- to high-end models for professionals and hobbyists. Next, the Precision Equipment Business. Revenue was down by JPY 29.6 billion year-over-year to JPY 124.9 billion, and operating profit was down by JPY 11.7 billion to a loss of JPY 600 million. The unit of sales of new semiconductor lithography systems was 6 units, down 16 units from the previous year. On the other hand, sales of FPD lithography systems for high-resolution panels increased by 15 units from the previous year to 26 units. The Precision Equipment Business as a whole saw a decline in both revenue and operating profit as the increase in FPD revenue could not offset the decrease in semiconductor revenue.
<unk> equipment business revenue was down by $29 6 billion yen year on year to $124 9 billion and operating profit was down by $11 7 billion yen to a loss of $600 million in.
Our sales of our new semiconductor lithography systems was six units down 16 units from the previous year on the other hand, the sales of <unk> lithography systems for high resolution panels increased by 15 units from the previous year to 26 units the bridges and equipment business as a whole saw a decline in both revenue.
And operating profit as the increase in <unk> revenue could not offset the decrease in same contract revenue in the third quarter alone. The completion of installation of some semiconductor lithography and the systems that had already been delivered who are postponed towards the fourth quarter, resulting in a fall short of the plan.
[Company Representative]: In the Q3 alone, the completion of installation of some semiconductor lithography systems that had already been delivered were postponed to the Q4, resulting in falling short of the plan. Slide 8, the Healthcare Business. In Life Science Solutions, sales decreased due to the market stagnation in Europe, the United States, and China. The Eye Care Solutions went up mainly in Europe and the United States, and overall revenue increased JPY 4.7 billion year-on-year to JPY 81.5 billion. On the other hand, operating profit decreased JPY 800 million year-on-year to JPY 2.1 billion due to the impact of the decrease of revenue in the Life Science Solutions and the increase of upfront investments such as R&D expenses.
[Company Representative] (Nikon): In the Q3 alone, the completion of installation of some semiconductor lithography systems that had already been delivered were postponed to the Q4, resulting in falling short of the plan. Slide 8, the Healthcare Business. In Life Science Solutions, sales decreased due to the market stagnation in Europe, the United States, and China. The Eye Care Solutions went up mainly in Europe and the United States, and overall revenue increased JPY 4.7 billion year-on-year to JPY 81.5 billion. On the other hand, operating profit decreased JPY 800 million year-on-year to JPY 2.1 billion due to the impact of the decrease of revenue in the Life Science Solutions and the increase of upfront investments such as R&D expenses.
Slide eight the health care business and our life Science solutions sales decreased due to the market stagnation in Europe, the United States and China, but the Ikea solutions went up mainly in Europe, and the United States and overall revenue increased $4 7 billion yen year on year to 81.5 billion yen.
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On the other hand operating profit decreased 800 billion yen year on year to $2 1 billion yen due to the impact of the decrease of revenue in the life Science solutions and the increase of upfront investments such as R&D expenses in the third quarter alone temporary logistics disruptions caused some supply deal.
[Company Representative]: In Q3 alone, temporary logistics disruptions caused some supply delays, resulting in the postponement of sales of some products to Q4. Slide nine shows the Components Business. Revenue was down by JPY 10.3 billion to JPY 49 billion due to a decline in sales of EUV-related components and encoders caused by delayed market recovery. Operating profit was down by JPY 7.1 billion year-on-year to JPY 3.6 billion due to the impact of the decline in revenue, as well as the restructuring costs in the Industrial Solutions Business. Digital manufacturing business, slide ten. Revenue increased by JPY 4.3 billion year-on-year to JPY 18.2 billion, thanks to the strong sales of SLM Solutions large format metal 3D printer, namely the NXG series.
[Company Representative] (Nikon): In Q3 alone, temporary logistics disruptions caused some supply delays, resulting in the postponement of sales of some products to Q4. Slide nine shows the Components Business. Revenue was down by JPY 10.3 billion to JPY 49 billion due to a decline in sales of EUV-related components and encoders caused by delayed market recovery. Operating profit was down by JPY 7.1 billion year-on-year to JPY 3.6 billion due to the impact of the decline in revenue, as well as the restructuring costs in the Industrial Solutions Business. Digital manufacturing business, slide ten. Revenue increased by JPY 4.3 billion year-on-year to JPY 18.2 billion, thanks to the strong sales of SLM Solutions large format metal 3D printer, namely the NXG series.
Lays resulting in the postponement of our sales of some products to the fourth quarter slide nine shows the components business revenue was down by $10 3 billion yen to 49 billion yen due to a decline in sales of <unk> related components, and then quarters caused by delayed market.
<unk> recovery.
Operating profit was down by $7 1 billion yen year on year to $3 6 billion yen due to the impact of the decline in revenue as well as the restructuring costs and the industrial solutions business.
Digital manufacturing business Slide 10 revenue increased by $4 3 billion yen year on year to $18 2 billion yen attached to the strong sales of SLM solutions large format metal <unk> printer, namely the <unk> series.
Operating profit and saw a reduction in the deficit of $1 7 billion yen due to increased sales at SLM solutions and the disappearance of onetime costs incurred in the previous year.
[Company Representative]: Operating profit saw a reduction in the deficit of JPY 1.7 billion due to increased sales at SLM Solutions and the disappearance of one-time costs incurred in the previous year. Next, I will explain the full year business forecast. Regarding the full year forecast, we have revised down revenue by JPY 5 billion and operating profit by JPY 3 billion, respectively, reflecting the decline in sales of related products due to the delayed market recovery in the Components Business. However, due to the improved financial income and loss in Q3, we will maintain a profit attributable to owners of parent at JPY 16 billion. We also maintain the annual dividend at JPY 55. We are currently acquiring JPY 30 billion worth of share buyback, and as of the end of January, we have already acquired JPY 19.3 billion.
[Company Representative] (Nikon): Operating profit saw a reduction in the deficit of JPY 1.7 billion due to increased sales at SLM Solutions and the disappearance of one-time costs incurred in the previous year. Next, I will explain the full year business forecast. Regarding the full year forecast, we have revised down revenue by JPY 5 billion and operating profit by JPY 3 billion, respectively, reflecting the decline in sales of related products due to the delayed market recovery in the Components Business. However, due to the improved financial income and loss in Q3, we will maintain a profit attributable to owners of parent at JPY 16 billion. We also maintain the annual dividend at JPY 55. We are currently acquiring JPY 30 billion worth of share buyback, and as of the end of January, we have already acquired JPY 19.3 billion.
Next I will explain the full year business forecast.
Regarding the full year forecast, we have revised down revenue by 5 billion yen and operating profit by <unk> 3 billion yen, respectively, reflecting the decline in sales of related products due to the delayed market with government and the components business. However, due to the improved the financial income and loss.
In the third quarter, we'll maintain our profit attributable to owners of parent at 16 billion yen. We also maintain the annual dividend at 55 yen. We are currently acquiring 30 billion yen was all the share buyback and as of the end of January we have already acquired a $19 3 billion in the assumed <unk>.
Right and for the fourth quarter remained unchanged at 145 yen to the U S dollar and 185 yen to the euro.
[Company Representative] (Nikon): The assumed exchange rates for Q4 remain unchanged at 145 yen to the US dollar and 155 yen to the euro. Please refer to slide 13, a table showing the main numbers of our full year performance forecast, including year-on-year and the previous forecast comparisons. The outline has already been explained. Slide 14 shows a list of full year forecasts by segment, along with year-on-year and the previous forecast comparisons. I will explain the details segment by segment. First, the Imaging Products Business. Please look at the bottom left of the document. We have revised up the digital camera-related market scale from our November forecast, taking into account the trends up to Q3.
[Company Representative]: The assumed exchange rates for Q4 remain unchanged at 145 yen to the US dollar and 155 yen to the euro. Please refer to slide 13, a table showing the main numbers of our full year performance forecast, including year-on-year and the previous forecast comparisons. The outline has already been explained. Slide 14 shows a list of full year forecasts by segment, along with year-on-year and the previous forecast comparisons. I will explain the details segment by segment. First, the Imaging Products Business. Please look at the bottom left of the document. We have revised up the digital camera-related market scale from our November forecast, taking into account the trends up to Q3.
Please refer to slide 13, I'll table, showing the main numbers of our full year performance walk us, including E on year and the previous forecast comparisons.
Outline has already been explained on slide 14 shows a list of full year and our forecast by segment along with year on year and the previous forecast comparisons I will explain the details segment by segment.
First the imaging product business. Please look at the bottom left of the document we have revised up the digital camera market to scale from our November forecast.
Taking into account the trends up to the third quarter.
Specifically, we expect additional camera interchangeable lens type two increased by 300000 units from our previous forecast to $6 4 million units and interchangeable lenses to increase by 400000 units to 10 million at the camera market continue to expand it through the third quarter mainland China. However, there are.
[Company Representative] (Nikon): Specifically, we expect the digital camera interchangeable lens type to increase by 300,000 units from our previous forecast to 6.4 million units, and interchangeable lenses to increase by 400,000 units to 10 million units. The camera market continued to expand through Q3, mainly in China. However, there are concerns about excess inventory, especially in China. We'll maintain our sales volume at 850,000 interchangeable lens cameras and 1.35 million interchangeable lenses. We also maintain our previous forecast of revenue of JPY 305 billion and operating profit of JPY 47 billion. Slide 16 is the Precision Equipment Business. Please look at the bottom left of the document. There is no change in the sales volume of both FPD lithography systems and semiconductor lithography systems from the previous forecast.
[Company Representative]: Specifically, we expect the digital camera interchangeable lens type to increase by 300,000 units from our previous forecast to 6.4 million units, and interchangeable lenses to increase by 400,000 units to 10 million units. The camera market continued to expand through Q3, mainly in China. However, there are concerns about excess inventory, especially in China. We'll maintain our sales volume at 850,000 interchangeable lens cameras and 1.35 million interchangeable lenses. We also maintain our previous forecast of revenue of JPY 305 billion and operating profit of JPY 47 billion. Slide 16 is the Precision Equipment Business. Please look at the bottom left of the document. There is no change in the sales volume of both FPD lithography systems and semiconductor lithography systems from the previous forecast.
Concerns about excess inventory, especially in China. So we'll maintain our sales volume at 850000 interchangeable lens cameras and the 135 million interchangeable lenses. We also maintain our previous forecast of revenue of 305 billion yen and operating profit of 42.
7 billion yen.
So that this extent as depreciation equipment business. Please look at the bottom left of the document there is no change in the sales volume of both at the lithography systems and semiconductor lithography systems from the previous forecast all systems for which sales are scheduled to be recognized in the fourth quarter and have already been delivered to a customer.
[Company Representative] (Nikon): All systems for which sales are scheduled to be recognized in Q4 have already been delivered to customer factories, and installation is scheduled to be completed by the end of this fiscal year. We also maintain our previous full year forecast of JPY 195 billion in revenue and JPY 9 billion in operating profit. On slide 17, I will briefly explain the new platform, ArF immersion lithography system series for semiconductors, that we are currently developing in the Precision Equipment Business. This new platform is designed to be compatible with other companies ArF immersion lithography systems that are widely used by semiconductor manufacturers.
[Company Representative]: All systems for which sales are scheduled to be recognized in Q4 have already been delivered to customer factories, and installation is scheduled to be completed by the end of this fiscal year. We also maintain our previous full year forecast of JPY 195 billion in revenue and JPY 9 billion in operating profit. On slide 17, I will briefly explain the new platform, ArF immersion lithography system series for semiconductors, that we are currently developing in the Precision Equipment Business. This new platform is designed to be compatible with other companies ArF immersion lithography systems that are widely used by semiconductor manufacturers.
Factories and installation is scheduled to be completed by the end of this fiscal year. We also maintain our previous full year forecast of 195 billion yen in revenue and a 9 billion and operating profit.
On slide 17, I will briefly and explained a new platform a R. F emotional throughout their system series for semiconductors that were currently developing and the precision equipment business.
This new platform is designed to be compatible with other companies the area for immersion lithography and the systems that are widely used by semiconductor manufacturers with the constellation of all the convenience of our semiconductor manufacturers customers. We are working with a major semiconductor manufacturer.
[Company Representative]: With consideration for the convenience of our semiconductor manufacturer customers, we are working with a major semiconductor manufacturer to jointly develop a prototype of the next generation series that combines high productivity, maintainability, and reliability so that we can deliver it in the fiscal year 2028. From 2028 onwards, we aim to significantly increase our share in the ArF immersion lithography systems market, which is expected to continue to expand as 3D will be further adopted in DRAM and the logic segments as well. Please now turn to slide 18. I will now explain the Healthcare Business. In the Healthcare Business, both revenue and operating profit remain unchanged from the previous forecast in November.
[Company Representative] (Nikon): With consideration for the convenience of our semiconductor manufacturer customers, we are working with a major semiconductor manufacturer to jointly develop a prototype of the next generation series that combines high productivity, maintainability, and reliability so that we can deliver it in the fiscal year 2028. From 2028 onwards, we aim to significantly increase our share in the ArF immersion lithography systems market, which is expected to continue to expand as 3D will be further adopted in DRAM and the logic segments as well. Please now turn to slide 18. I will now explain the Healthcare Business. In the Healthcare Business, both revenue and operating profit remain unchanged from the previous forecast in November.
To jointly develop a prototype of the next generation service that combines high productivity maintainability and reliability. So that we can deliver it in fiscal year 2028 from 2020 at onerous, we aim to significantly increase our share in the L. F emotional lithography systems market.
As expected to continue to expand as a three D will be further adopted in DRAM and logic segments as well. Please now turn to slide 18, I will now explain the health care business and the health care business, both revenue and operating profit remain unchanged from the previous forecast in November and the last one.
<unk> solutions, although there are concerns about the impact of high interest rates in the United States and the economic downturn in China. There are signs of recovery in the order environment, particularly in Europe, and the United States and we aim to achieve our full year plan.
[Company Representative]: In the Life Science Solutions, although now there are more concerns about the impact of high interest rates in the United States and economic downturn in China, there are signs of recovery in the order environment, particularly in Europe and the United States. We aim to achieve our full-year plan. In Eye Care Solutions, demand from optometrists and the major chains in the West is strong. We expect to incur the one-time cost of JPY 2 billion in the Eye Care Solutions this fiscal year. In contract cell manufacturing, as we explained at the November financial results conference, revenue is expanding steadily and expected to contribute further to revenue and profit from next fiscal year onwards. Slide 19 shows the forecast for the Components Business.
[Company Representative] (Nikon): In the Life Science Solutions, although now there are more concerns about the impact of high interest rates in the United States and economic downturn in China, there are signs of recovery in the order environment, particularly in Europe and the United States. We aim to achieve our full-year plan. In Eye Care Solutions, demand from optometrists and the major chains in the West is strong. We expect to incur the one-time cost of JPY 2 billion in the Eye Care Solutions this fiscal year. In contract cell manufacturing, as we explained at the November financial results conference, revenue is expanding steadily and expected to contribute further to revenue and profit from next fiscal year onwards. Slide 19 shows the forecast for the Components Business.
In Ikea and a solutions demand from off the mattress and the major change in the West is strong we expect.
To incur onetime costs of 2 billion yen in the Ikea solution this fiscal year.
In contractor in our cell manufacturing as we explained at the November financial results Conference revenue is expanding with Sterling and we expect it to contribute their father to revenue and the profit from next fiscal year onwards, Slide 19 shows the forecast for the components business due to the delayed recovery in the semiconductor and factory automation.
[Company Representative]: Due to the delayed recovery in the semiconductor and the factory automation markets, the recovery of demand for our related products, EUV-related components, optical parts, optical components, and encoders, is expected to be further delayed. In light of this, we have lowered our revenue forecast by JPY 5 billion from the November forecast to JPY 73 billion. We have also lowered our operating profit forecast by JPY 3 billion to JPY 5 billion. As planned, we expect to incur restructuring-related expenses of JPY 2.5 billion for the restructuring in the Industrial Solutions Business, a former Industrial Metrology Business, and we aim to improve operating profit from the next fiscal years onward. Slide 20 shows the digital manufacturing business. There are no changes in the previous outlook for both revenue and operating profit.
[Company Representative] (Nikon): Due to the delayed recovery in the semiconductor and the factory automation markets, the recovery of demand for our related products, EUV-related components, optical parts, optical components, and encoders, is expected to be further delayed. In light of this, we have lowered our revenue forecast by JPY 5 billion from the November forecast to JPY 73 billion. We have also lowered our operating profit forecast by JPY 3 billion to JPY 5 billion. As planned, we expect to incur restructuring-related expenses of JPY 2.5 billion for the restructuring in the Industrial Solutions Business, a former Industrial Metrology Business, and we aim to improve operating profit from the next fiscal years onward. Slide 20 shows the digital manufacturing business. There are no changes in the previous outlook for both revenue and operating profit.
<unk> the recovery of demand for our related products <unk> related.
<unk> optical parts optical components and in quarters is expected to be further delayed in light of this we have lowered our revenue forecast by 5 billion yen from November forecast to 73 billion M. We have also lowered our operating profit forecast by 3 billion yen two 5 billion yen as.
So in the plan that we expect to incur related expenses of $2 5 billion yen for the restructuring and the industrial solutions business.
Former industrial metrology business and we aim to improve operating profit from the next fiscal year onward Slide 20 shows the additional manufacturing business. There are no changes into the purpose out looking for both revenue and operating profit due to the increase in demand from the aerospace and defense industries orders and sales are progressing smoothly mainly for esol.
[Company Representative] (Nikon): Due to the increase in demand from aerospace and defense industries, orders and sales are progressing smoothly, mainly for Nikon SLM Solutions large format metal 3D printers, the NXG series. Nikon SLM Solutions orders in the Q3 reached an all-time high on a quarter basis, and we can expect sales to expand in the Q4 and the next fiscal year. This fiscal year, we aim for Nikon SLM Solutions to achieve a full year profit on an EBITDA basis. There is no change to our policy of aiming for an operating profit for Nikon SLM Solutions alone next fiscal year, and a profit for the entire digital manufacturing business in the fiscal year following that, ending March 2027. That's all for now, but now allow me to wrap up with the major points.
[Company Representative]: Due to the increase in demand from aerospace and defense industries, orders and sales are progressing smoothly, mainly for Nikon SLM Solutions large format metal 3D printers, the NXG series. Nikon SLM Solutions orders in the Q3 reached an all-time high on a quarter basis, and we can expect sales to expand in the Q4 and the next fiscal year. This fiscal year, we aim for Nikon SLM Solutions to achieve a full year profit on an EBITDA basis. There is no change to our policy of aiming for an operating profit for Nikon SLM Solutions alone next fiscal year, and a profit for the entire digital manufacturing business in the fiscal year following that, ending March 2027. That's all for now, but now allow me to wrap up with the major points.
M solutions to large format middle three D printers.
Z series.
<unk> solutions orders in the third quarter reached an all time high on a quarterly basis, and we can expect cells to expand in the fourth quarter and the next fiscal year.
This fiscal year, we aimed for SLM solutions to achieve a fully inappropriate on an EBIT basis. There is no change to our policy of aiming for an operating profit for SLM solutions alone next fiscal year and in profit for the entire data online poker business in the fiscal year and are following that ending March 2027.
That's all for now, but now allow me to wrap up her with the major points in the third quarter cumulative operating profit was $8 1 billion yen, mainly due to decrease in sales in the semiconductor related businesses of the precision equipment business and the components business. The fully in operating profit forecast has been revised.
[Company Representative] (Nikon): In Q3, cumulative operating profit was JPY 8.1 billion, mainly due to decrease in sales in the semiconductor-related businesses of the Precision Equipment Business and the Components Business. The full year operating profit forecast has been revised down by JPY 3 billion to JPY 19 billion due to a decline in sales in the Components Business, mainly related to the semiconductor-related business. We are currently formulating the budget for the next fiscal year, which is the final year of the four-year Medium-Term Management Plan. There will be no more one-time costs associated with the relocation of headquarters and restructuring. We expect the semiconductor-related business and the Precision Equipment Business and the Components Business to recover in the second half of next fiscal year, order environment is still unclear.
[Company Representative]: In Q3, cumulative operating profit was JPY 8.1 billion, mainly due to decrease in sales in the semiconductor-related businesses of the Precision Equipment Business and the Components Business. The full year operating profit forecast has been revised down by JPY 3 billion to JPY 19 billion due to a decline in sales in the Components Business, mainly related to the semiconductor-related business. We are currently formulating the budget for the next fiscal year, which is the final year of the four-year Medium-Term Management Plan. There will be no more one-time costs associated with the relocation of headquarters and restructuring. We expect the semiconductor-related business and the Precision Equipment Business and the Components Business to recover in the second half of next fiscal year, order environment is still unclear.
Down by the 3 billion yen to 19 billion yen due to a decline in cells in the components business mainly related to the semiconductor related business. We are currently formulating the budget for the next fiscal year, which is the final year of the four year medium term management plan, but there will be no more onetime costs associate.
It was the relocation of headquarters and restructuring we expect the same contract related business and depreciation equipment business and the components business to recover in the second half of next fiscal year, but order environment is still unclear and <unk> lithography systems business, we expect the profit to improve thanks to the expansion of high resolution system.
[Company Representative] (Nikon): In the FPD lithography systems business, we expect the profit to improve thanks to the expansion of high-resolution systems. In addition, we will begin a full-scale development of a new platform equipment series with the aim of significantly increasing our share in the market for ArF immersion lithography in the system for semiconductors, which is expected to continue to expand. Imaging Products Business remains strong and we will strive to expand sales of mirrorless cameras, including the launch of new products in the next fiscal year. In the Healthcare Business and the digital manufacturing business, which are expected to grow as orders are currently strong and we expect profits to increase in the next fiscal year. We appreciate our shareholders and investors for your continued understanding and support. Thank you for your kind attention.
[Company Representative]: In the FPD lithography systems business, we expect the profit to improve thanks to the expansion of high-resolution systems. In addition, we will begin a full-scale development of a new platform equipment series with the aim of significantly increasing our share in the market for ArF immersion lithography in the system for semiconductors, which is expected to continue to expand. Imaging Products Business remains strong and we will strive to expand sales of mirrorless cameras, including the launch of new products in the next fiscal year. In the Healthcare Business and the digital manufacturing business, which are expected to grow as orders are currently strong and we expect profits to increase in the next fiscal year. We appreciate our shareholders and investors for your continued understanding and support. Thank you for your kind attention.
In addition, we will begin a full scale development of a new platform equipment series was the aim of significantly increasing our share in the market for area four emotion that took off in the system for semiconductors, which expected to continue to expand.
Imaging products business remains strong and will strive to expand sales of mirror less cameras, including the launch of new products in the next fiscal year and the health care business and additional much trucking business, which expertise to grow as orders are currently strong and we expect profits to increase in the next fiscal year. We appreciate our shareholders.
Investors for your continued understanding and support thank you for your kind attention.
