Q4 2025 Nikon Corp Earnings Call
I'll begin by reviewing our results for the fiscal year ended March 31, 2025, and then share our outlook for the current fiscal year for FY 2025, Nikon recorded revenue of 715.2 billion in operating profit of $2 4 billion yen and profit attributable to owners of the parent of a six.
Operator: I'll begin by reviewing our results for the fiscal year ended March 31, 2025, and then share our outlook for the current fiscal year. For FY 2025, Nikon recorded revenue of ¥715.2 billion, operating profit of ¥2.4 billion, and profit attributable to owners of a parent of ¥6.1 billion. We faced a decline in sales for semiconductor-related businesses within precision equipment and The increase in sales from imaging products and healthcare, and the weaker yen were not enough to offset this, resulted in a slight drop in overall revenue.
[Company Representative] (Nikon): I'll begin by reviewing our results for the fiscal year ended 31 March 2025, and then share our outlook for the current fiscal year. For FY2025, Nikon recorded revenue of JPY 715.2 billion, operating profit of JPY 2.4 billion, and profit attributable to owners of the parent of JPY 6.1 billion. We faced a decline in sales for semiconductor-related businesses within Precision Equipment and Components. The increase in sales from Imaging Products and Healthcare and the weaker yen were not enough to offset this, resulting in a slight drop in overall revenue. Adding to this, we recorded a JPY 27.2 billion in one-time costs, which significantly reduced our profit. Details are available on slide 28.
Toshikazu Umatate: I'll begin by reviewing our results for the fiscal year ended 31 March 2025, and then share our outlook for the current fiscal year. For FY2025, Nikon recorded revenue of JPY 715.2 billion, operating profit of JPY 2.4 billion, and profit attributable to owners of the parent of JPY 6.1 billion. We faced a decline in sales for semiconductor-related businesses within Precision Equipment and Components. The increase in sales from Imaging Products and Healthcare and the weaker yen were not enough to offset this, resulting in a slight drop in overall revenue. Adding to this, we recorded a JPY 27.2 billion in one-time costs, which significantly reduced our profit. Details are available on slide 28.
Point 1 billion yen, we faced a decline in sales for semiconductor related businesses within precision equipment and components, the increasing sales from imaging products and healthcare and the weaker yen were not enough to offset this resulted in a slight drop in overall revenue, adding to this we recorded a 27.2 billion yen in onetime costs.
Operator: Adding to this, we recorded ¥27.2 billion in one-time costs, which significantly reduced our profit. Details are available on slide 28.
Which significantly raised our profit details are available on slide 28.
Compared to our previous forecast of imaging products precision equipment and digital manufacturing old fell short of expectations contributing to a notable shortfall in profit.
Operator: Compared to our previous forecast, imaging products, precision equipment, and digital manufacturing all fell short of expectations, contributing to a notable shortfall in profit. Because of this, we revised our annual dividend downward by ¥5 to ¥50 per share, keeping it at the same level as the end of last year. The ¥30 billion share buyback was carried out as planned using funds made available through balance sheet efficiencies. The repurchased shares were cancelled at the end of the fiscal year.
[Company Representative] (Nikon): Compared to our previous forecast, Imaging Products, Precision Equipment, and Digital Manufacturing all fell short of expectations, contributing to a notable shortfall in profits. Because of this, we revised our annual dividend downward by JPY 5 to 50 per share, keeping it at the same level as the end of last year. The JPY 30 billion share buyback was carried out as planned, using funds made available through balance sheet efficiencies. The repurchased shares were canceled at the end of the fiscal year. This chart shows the changes in operating profit by segment compared to our 6 February 2024 forecast. As you can see, Imaging Products, Precision Equipment, and Digital Manufacturing saw major downside, and one-time costs played a significant role. Slide five in the yellow box highlights key financial indicators for previous fiscal year.
Toshikazu Umatate: Compared to our previous forecast, Imaging Products, Precision Equipment, and Digital Manufacturing all fell short of expectations, contributing to a notable shortfall in profits. Because of this, we revised our annual dividend downward by JPY 5 to 50 per share, keeping it at the same level as the end of last year. The JPY 30 billion share buyback was carried out as planned, using funds made available through balance sheet efficiencies. The repurchased shares were canceled at the end of the fiscal year. This chart shows the changes in operating profit by segment compared to our 6 February 2024 forecast. As you can see, Imaging Products, Precision Equipment, and Digital Manufacturing saw major downside, and one-time costs played a significant role. Slide five in the yellow box highlights key financial indicators for previous fiscal year.
Because of this waiver revise our annual dividend a downward by five years to 50 yen per share keeping it at the same level as the end over the last year. The 30 billion yen share buyback was carried out as planned using funds made available through our balance sheet efficiencies the repurchase of shares were canceled.
At the end of the fiscal year.
This chart shows the changes in operating profit by segment compared to our February six our forecast.
Operator: This chart shows the changes in operating profit by segment compared to our February 6th forecast. As you can see, imaging products, precision equipment, and digital manufacturing saw major downsides, and one-time costs played a significant role.
As you can see imaging products precision equipment and digital manufacturing so a major downside and the one time costs have played a significant role.
Slide five in the yellow box highlights our key financial indicators for the previous fiscal year.
Operator: Slide 5 in the yellow box highlights key financial indicators for previous fiscal year. Operating cash flow was ¥48.2 billion, marking the second consecutive year of growth.
Operating cash flow was 48 2 billion, marking the second consecutive year of growth.
[Company Representative] (Nikon): Operating cash flow was JPY 48.2 billion, marking the second consecutive year of growth. However, free cash flow came to -JPY 21.7 billion due to outlays tied to our acquisition RED and relocation of our head office. On slide six, we present segment results compared to both the previous year and our previous forecast. Let me walk through each one. Starting with Imaging Products business. The global market for digital camera interchangeable lens type continued to expand, especially in China. With strong demand for our new mirrorless cameras, both bodies and lenses, and a tailwind from a weaker yen, revenue increased by JPY 15.6 billion to JPY 295.3 billion.
Toshikazu Umatate: Operating cash flow was JPY 48.2 billion, marking the second consecutive year of growth. However, free cash flow came to -JPY 21.7 billion due to outlays tied to our acquisition RED and relocation of our head office. On slide six, we present segment results compared to both the previous year and our previous forecast. Let me walk through each one. Starting with Imaging Products business. The global market for digital camera interchangeable lens type continued to expand, especially in China. With strong demand for our new mirrorless cameras, both bodies and lenses, and a tailwind from a weaker yen, revenue increased by JPY 15.6 billion to JPY 295.3 billion.
However, free cash flow all came to minus 21.7 billion yen due to outlays are tied to our acquisition of Red and relocation of our head office on slide six we present, our segment results compared to both the previous year and our previous forecasts.
Operator: However, free cash flow came to minus 21.7 billion yen due to outlays tied to our acquisition RED and relocation of our head office.
Operator: On slide 6, we present segment results compared to both the previous year and our previous forecast. Let me walk through each one. starting with imaging product business. The global market for digital camera interchangeable lens type continue to expand, especially in China. with strong demand for our new mirrorless cameras, both bodies and lenses, and a tailwind from weaker yen revenue increased by 15.6 billion yen to 295.3 billion yen. However, sluggish conditions in cinema industry resulted in operating losses at RED, a company we acquired, and our recognition of fixed asset impairment losses at MRNC also led to a decline in operating profit by 5.2 billion yen to 41.3 billion yen.
Let me walk through each one.
Starting with imaging products business, the global market for digital camera interchangeable lens type continued to expand especially in China.
With strong demand for our new mirrorless cameras, both bodies and lenses and a tailwind from a weaker yen revenue increased by $15 6 billion yen to $295 3 billion Union. However, sluggish conditions in cinema industry resulted in operating losses.
[Company Representative] (Nikon): However, sluggish conditions in cinema industry resulted in operating losses at RED, a company we acquired, and our recognition of fixed asset impairment losses at MRMC also led to a decline in operating profit by JPY 5.2 billion to JPY 41.3 billion. Compared to our forecast, profits fell by JPY 5.7 billion due to a shift in product mix, leading to lower lens sales versus the plan, in addition to the impact of one-time costs. Next on slide eight, Precision Equipment business. Sales of FPD lithography system for high-resolution panels increased significantly. However, that was offset by a decline in new semiconductor lithography system sales. This brought overall revenue down by JPY 17.4 billion to JPY 201.9 billion.
Toshikazu Umatate: However, sluggish conditions in cinema industry resulted in operating losses at RED, a company we acquired, and our recognition of fixed asset impairment losses at MRMC also led to a decline in operating profit by JPY 5.2 billion to JPY 41.3 billion. Compared to our forecast, profits fell by JPY 5.7 billion due to a shift in product mix, leading to lower lens sales versus the plan, in addition to the impact of one-time costs. Next on slide eight, Precision Equipment business. Sales of FPD lithography system for high-resolution panels increased significantly. However, that was offset by a decline in new semiconductor lithography system sales. This brought overall revenue down by JPY 17.4 billion to JPY 201.9 billion.
Read a company, we acquired and a recognition of fixed asset impairment losses M. R. M. C. Also led to a decline in operating profit by $5 2 billion yen to 41.3 billion yet.
Compared to a forecast profits fell by 5.7 billion yen due to a shift in product mix, leading to a lower land sales versus our plan. In addition to the impact of one time costs.
Operator: Compared to our forecast, profits fell by 5.7 billion yen due to a shift in product mix leading to a lower land sales versus the plan, in addition to the impact of one-time Next, on slide 8, precision equipment business. Sales of FED lithography system for high-resolution panels increased significantly. However, that was offset by a decline in new semiconductor lithography system sales. This brought overall revenue down by 17.4 billion yen to 201.9 billion yen. We also revised our future plans for semiconductor lithography business due to changes in customer investment plans and delays in market recovery. As a result, we recorded 14.1 billion yen in fixed asset impairment losses, inventory write-downs, and restructuring costs.
Next on slide eight precision equipment business sales of SPD lithography system for high resolution panels increase significantly however.
However that was offset by a decline in new semiconductor lithography system sales.
This brought overall revenue down by 17.4 billion yen due $201 9 billion.
We also revised our future plans for semiconductor lithography business due to changes in customer investment plans and delays in market recovery. As a result, we recorded a 14.1 billion yen in fixed asset impairment losses inventory write downs and restructuring costs.
[Company Representative] (Nikon): We also revised our future plans for semiconductor lithography business due to changes in customer investment plans and delays in market recovery. As a result, we recorded JPY 14.1 billion in fixed asset impairment losses, inventory write-downs, and restructuring costs. Operating profit was limited to JPY 1.5 billion. Compared to forecast, profit was down by JPY 7.5 billion due to one-time costs despite higher service income. Now on slide nine, Healthcare business. Sales in Life Science Solutions declined due to sluggish markets in Europe, the US, and China. Strong growth in Eye Care Solutions and Contract Cell Development and Manufacturing, plus the weaker yen, pushed the revenue and profit higher year-on-year. However, we still came in JPY 1.3 billion below our forecast due to missed Life Science Solutions sales and the disposal of old inventory. Next, Components business on slide 10.
Toshikazu Umatate: We also revised our future plans for semiconductor lithography business due to changes in customer investment plans and delays in market recovery. As a result, we recorded JPY 14.1 billion in fixed asset impairment losses, inventory write-downs, and restructuring costs. Operating profit was limited to JPY 1.5 billion. Compared to forecast, profit was down by JPY 7.5 billion due to one-time costs despite higher service income. Now on slide nine, Healthcare business. Sales in Life Science Solutions declined due to sluggish markets in Europe, the US, and China. Strong growth in Eye Care Solutions and Contract Cell Development and Manufacturing, plus the weaker yen, pushed the revenue and profit higher year-on-year. However, we still came in JPY 1.3 billion below our forecast due to missed Life Science Solutions sales and the disposal of old inventory. Next, Components business on slide 10.
Operating profit it wasn't limited to 1.5 beta Union.
Operator: Open profit was limited to 1.5 billion yen. Compared to forecast, profit was down by 7.5 billion yen due to one-time costs despite higher service income.
Compared to a forecast profit was down by 7.5 billion yen I do do it onetime cost despite higher service income.
Now on slide nine health care business.
Operator: Now on Slide 9, Health Care Business Sales in life science solutions declined due to sluggish markets in Europe, the U.S. and China, but strong growth in eye care solutions and contract cell development and manufacturing, plus the weaker yen, pushed the revenue and profit higher year on year. However, we still came in 1.3 billion yen below our forecast due to a missed life sciences solution sales and the disposal of old inventory.
Also in life Science solutions declined due to sluggish markets in Europe, the U S and China, but strong growth in eye care solutions and contract development and manufacturing plus the weaker yen boost our revenue and profit and higher year on year.
However, we still came in at 1.3 billion yen below our forecast due do have missed life Sciences solutions sales and the disposal of old inventory.
Next component business on slide 10, we saw growth in X-ray N C. T system for aerospace obligation, but declines in <unk> related components optical parts and components and encoder, a drag that segment down revenue dropped 11.8 billion and operating profit fell by 8 billion yen.
Operator: Next, component business on slide 10. We saw growth in X-ray and CT systems for aerospace applications but declines in EUV-related components, optical parts and components, and encoder dragged the segment down. Revenue dropped 11.8 billion yen and operating profit fell by 8 billion yen. Compared to forecast, profit exceeded expectations by 2.1 billion yen thanks to cost controls and lower restructuring costs in industrial solutions business.
[Company Representative] (Nikon): We saw growth in X-ray and CT system for aerospace application, but declines in EUV-related components, optical parts and components, and encoder dragged the segment down. Revenue dropped JPY 11.8 billion and operating profit fell by JPY 8 billion. Compared to forecast, profit exceeded expectations by JPY 2.1 billion, thanks to cost controls and lower restructuring costs in Industrial Solutions business. Now our last segment, Digital Manufacturing business. The overall metal 3D printer market slightly contracted, primarily for small to mid-size system due to market condition. However, in our focus area of aerospace and defense, demand for Nikon's SLM Solutions large format system, NXG series expanded. NXG sales, which constituted over half of SLM's revenue, grew by 33% year-on-year, with approximately 75% directed to the space and defense sector.
Toshikazu Umatate: We saw growth in X-ray and CT system for aerospace application, but declines in EUV-related components, optical parts and components, and encoder dragged the segment down. Revenue dropped JPY 11.8 billion and operating profit fell by JPY 8 billion. Compared to forecast, profit exceeded expectations by JPY 2.1 billion, thanks to cost controls and lower restructuring costs in Industrial Solutions business. Now our last segment, Digital Manufacturing business. The overall metal 3D printer market slightly contracted, primarily for small to mid-size system due to market condition. However, in our focus area of aerospace and defense, demand for Nikon's SLM Solutions large format system, NXG series expanded. NXG sales, which constituted over half of SLM's revenue, grew by 33% year-on-year, with approximately 75% directed to the space and defense sector.
Compared to a forecast profit exceeded expectations by $2 1 billion, thanks to cost controls and lower restructuring costs and industrial solution business.
Now our last segment, there's toll manufacturing business.
Operator: Now, our last segment, digital manufacturing business. The overall metal 3D printer market is slightly contracted, primarily for small to mid-sized systems due to market conditions. However, in our focus area of aerospace and defense, demand for Nikon's SLM solution's large format system, NXG series, expanded. NXG sales, which continued over half of SLM's revenue, grew by 33% year-on-year, with approximately 75% directed to space and defense sectors. This contributed to an overall business revenue increase of 2.3 billion yen to 23.3 billion yen. On the profit side, however, our operating losses widened by 1.2 billion yen year-on-year to 15.2 billion yen due to increased costs from lower production volumes of small to mid-sized systems, as well as upfront investments such as in our U.S.
The overall metal <unk> printer market slightly contract. It pardon me for small to mid sized system due to market conditions. However, in our focus area of aerospace and defense demand for Nikon S. O M solutions large format system NXT series expand it.
And <unk> sales, which continued over a half of S. L. EMS revenue grew by 33% year on year with approximately 75% directly to our space and defense sector.
This contributed to an overall business revenue increase of $2 3 billion yen to 23.3 billion yen.
[Company Representative] (Nikon): This contributed to an overall business revenue increase of JPY 2.3 billion to JPY 23.3 billion. On the profit side, however, our operating losses widened by JPY 1.2 billion year-over-year to JPY 15.2 billion due to increased costs from lower production volume of small to mid-size system as well as upfront investments such as in our US facility and R&D. This also resulted in JPY 5.7 billion profit shortfall compared to our previous forecast, and the reason for which I'll expand later together with the outlook for the current fiscal year on slide 22. Let's turn to the outlook now. For FY 2026, we are assuming JPY 145 to the dollar and JPY 155 to the euro.
Toshikazu Umatate: This contributed to an overall business revenue increase of JPY 2.3 billion to JPY 23.3 billion. On the profit side, however, our operating losses widened by JPY 1.2 billion year-over-year to JPY 15.2 billion due to increased costs from lower production volume of small to mid-size system as well as upfront investments such as in our US facility and R&D. This also resulted in JPY 5.7 billion profit shortfall compared to our previous forecast, and the reason for which I'll expand later together with the outlook for the current fiscal year on slide 22. Let's turn to the outlook now. For FY 2026, we are assuming JPY 145 to the dollar and JPY 155 to the euro.
On the profit side, however, our operating losses widened by 1.2 billion yen year on year to 15 point to meeting him due to increased costs from lower production volume of small to mid sized system as well as upfront investments such as in our U S facility.
<unk> and R&D.
This also resulted in $5 7 billion yen profit shortfall compared to our previous forecast and the reason for which I'll explain later together with our outlook for the current fiscal year on slide 22, let's turn to the outlook now.
Operator: facility and R&D.
Operator: This also resulted in 5.7 billion yen profit shortfall compared to our previous forecast and the reason for which I'll explain later together with the outlook for the current fiscal year on slide 22.
For FY 2026, we are assuming 145 yen to the dollar and 155 yen to the Euro we expect our revenue of 710 billion yen operating profit of 36 bidding in and profit attributable to owners of parent of <unk>.
Operator: Let's turn to the outlook now. For FY 2026, we are assuming ¥145 to the dollar and ¥155 to the euro. We expect a revenue of ¥710 billion, operating profit of ¥36 billion, and profit attributable to owners or parents of ¥30 billion. Components and digital manufacturing should see growth, while stronger yen and weaker sales in semiconductor lithography business in precision equipment will likely keep total revenue flat. We anticipate a significant ¥33.6 billion increase in operating profit, driven by improved profitability in some businesses, the absence of last year's ¥27.2 billion in one-time costs, gains from the sales of idle assets, reduced R&D spending, and effects from restructuring.
[Company Representative] (Nikon): We expect a revenue of JPY 710 billion, operating profit of JPY 36 billion, and profit attributable to owners of parent of JPY 30 billion. Components and Digital Manufacturing should see growth while stronger yen and weaker sales in semiconductor lithography business in Precision Equipment will likely keep total revenue flat. We anticipate a significant JPY 33.6 billion increase in operating profit driven by improved profitability in some businesses, the absence of last year's JPY 27.2 billion in one-time costs, gains from the sales of idle assets, reduced R&D spending, and the effects from restructuring. The dividend will be JPY 50 per share, same as last year. Details are on the next slide. Due to the uncertainty surrounding US tariffs, they are not included in the forecast. We anticipate approximately JPY 10 billion negative impact on operating profit.
Toshikazu Umatate: We expect a revenue of JPY 710 billion, operating profit of JPY 36 billion, and profit attributable to owners of parent of JPY 30 billion. Components and Digital Manufacturing should see growth while stronger yen and weaker sales in semiconductor lithography business in Precision Equipment will likely keep total revenue flat. We anticipate a significant JPY 33.6 billion increase in operating profit driven by improved profitability in some businesses, the absence of last year's JPY 27.2 billion in one-time costs, gains from the sales of idle assets, reduced R&D spending, and the effects from restructuring. The dividend will be JPY 50 per share, same as last year. Details are on the next slide. Due to the uncertainty surrounding US tariffs, they are not included in the forecast. We anticipate approximately JPY 10 billion negative impact on operating profit.
30 billion yen.
Components and there is no manufacturing or should see gross while a stronger yen and weaker sales in semiconductor lithography business in precision equipment will likely keep the total revenue.
We anticipate a significant $33 6 billion increase in operating profit driven by improved possibility in some businesses. The absence of last year's at 27.2 billion yen in onetime costs gains from the sales of idle assets reduce R&D spending and the effects from restructuring.
<unk>.
The dividend will be 50 yen per share same as last year details are on the next slide.
Operator: The dividend will be ¥50 per share, same as last year. Details are on the next slide.
Due to the uncertainties surrounding U S tariffs. They are not included in our forecast.
Operator: Due to the uncertainty surrounding U.S. tariffs, they are not included in the forecast. We anticipate approximately 10 billion yen negative impact on operating profit. This is a current estimate and will be incorporated into our four-year forecast at the appropriate time, pending final negotiation, related economic impact, and effectiveness of our countermeasures.
We anticipate approximately 10 billion yen negative impact on operating profit.
This is our current estimate and will be incorporated into our full year forecast at the appropriate time pending final negotiation related economic impact and effectiveness of our countermeasures.
[Company Representative] (Nikon): This is our current estimate and will be incorporated into our full-year forecast at the appropriate time, pending final negotiation, related economic impacts, and effectiveness of our countermeasures. Now, let me talk about our shareholder return policy under the midterm management plan. Given the recent performance, we have revised our dividend projections. For FY 2025, we lowered the dividend from JPY 55 to JPY 50 per share. For FY 2026, we've also adjusted the original target from JPY 60 to JPY 50 per share. We also completed a JPY 30 billion share buyback last fiscal year, which brought our total shareholder return ratio to 765.8%. For the current fiscal year, we project a return ratio of 54.8% and over the full four-year plan.
Toshikazu Umatate: This is our current estimate and will be incorporated into our full-year forecast at the appropriate time, pending final negotiation, related economic impacts, and effectiveness of our countermeasures. Now, let me talk about our shareholder return policy under the midterm management plan. Given the recent performance, we have revised our dividend projections. For FY 2025, we lowered the dividend from JPY 55 to JPY 50 per share. For FY 2026, we've also adjusted the original target from JPY 60 to JPY 50 per share. We also completed a JPY 30 billion share buyback last fiscal year, which brought our total shareholder return ratio to 765.8%. For the current fiscal year, we project a return ratio of 54.8% and over the full four-year plan.
Now, let me talk about our shareholder return policy under the midterm management plan.
Operator: Now, let me talk about our shareholder return policy under the Midterm Management Plan. Given the recent performance, we have revised our dividend projections. For FY 2025, we lowered the dividend from ¥55 to ¥50 per share. And for FY 2026, we've also adjusted the original target from ¥60 to ¥50 per share. We also completed a ¥30 billion share buyback last fiscal year, which brought our total shareholder return ratio to 765.8%. For the current fiscal year, we project a return ratio of 54.8% and over the full four-year plan. And the cumulative ratio should be around 111.3%. Roughly 15% of total distributable resources on the plan will be allocated to shareholder returns.
Given our recent performance we have revised our dividend projections for FY 2025, we lowered the dividend from 55 to 50 yen per share and for FY 2026. We've also adjusted the original target from 60 N 250 M per share. We also completed a 30.
Billion yen of share buyback last fiscal year, which brought our total shareholder return ratio two 765, 8% for the current fiscal year. We project a return ratio of 54, 8% and over a full four year plan and our accumulative ratio should be around 111 points 8%.
[Company Representative] (Nikon): The cumulative ratio should be around 111.3%. Roughly 15% of total distributable resources under the plan will be allocated to shareholder returns. Please refer to slide 15 for a summary of our key FY2026 indicators alongside year-on-year comparisons. Slide 16 shows full-year projection by segment, also compared to last year. The Others operating loss, down two lines, improved JPY 13.1 billion year-on-year. This reflects the absence of last year's one-time costs related to our head office relocation and footprint reorganization, along with expected gains from idle asset sales, and lower R&D spending, as noted below. Now let's go into the each segment forecast, starting with Imaging Products. We expect the interchangeable lens camera market to remain steady at around 6.7 million units.
Toshikazu Umatate: The cumulative ratio should be around 111.3%. Roughly 15% of total distributable resources under the plan will be allocated to shareholder returns. Please refer to slide 15 for a summary of our key FY2026 indicators alongside year-on-year comparisons. Slide 16 shows full-year projection by segment, also compared to last year. The Others operating loss, down two lines, improved JPY 13.1 billion year-on-year. This reflects the absence of last year's one-time costs related to our head office relocation and footprint reorganization, along with expected gains from idle asset sales, and lower R&D spending, as noted below. Now let's go into the each segment forecast, starting with Imaging Products. We expect the interchangeable lens camera market to remain steady at around 6.7 million units.
Roughly 15% of total distributable resources under the plan will be allocated to shareholder returns.
Please refer to slide 15 for a summary of our key FY 2026 indicators along side year on year comparisons.
Operator: Please refer to slide 15 for a summary of our key FY 2026 indicators alongside year-on-year comparison. Size 16 shows full year projection by segment, also compared to last year. The others operating loss down two lines improved 13.1 billion yen year on year. This reflects the absence of last year's one-time costs related to our head office relocation and footprint reorganization along with expected gains from idle asset sales and lower R&D spending as noted below.
Slide 16 shows our full year projection by segment also compared to last year.
The others operating loss down two lines improved 13.1 billion yen year on year.
This reflects the absence of last year's one time costs related to our head office relocation and footprint reorganization, along with expected gains from Idaho asset sales and lower R&D spending as noted below.
Now, let's go into the each segment forecasts, starting lids imaging products, we expect that interchangeable lens camera market to remain steady at around $6 7 million units.
Operator: Now, let's go into each segment forecast, starting with imaging products. We expect the interchangeable lens camera market to remain steady at around 6.7 million units. We anticipate a continual favorable market trend led by mid- to high-end cameras for professionals and hobbyists. We are aiming to increase our unit sales especially within the volume zone such as Z52 launched April and Z52 released last November which incorporate advanced technology from Z9s. We are targeting sales of 950,000 camera bodies up 100,000 from last year and 1.4 million lenses up 90,000. Due to a slight drop in SP, revenue is expected to hold steady at 295 billion yen, with operating profit down by 1.3 billion yen to 40 billion yen, due in part by stronger yen.
We anticipate a continued favorable market trends led by mid to high end cameras for professionals and hobbyists.
[Company Representative] (Nikon): We anticipate a continued favorable market trend led by mid- to high-end cameras for professionals and hobbyists. We are aiming to increase our unit sales, especially within the volume zone, such as Z5 II, launched April, and Z 50 II, released last November, which incorporate advanced technology from Z9s. We are targeting sales of 950,000 camera bodies, up 100,000 from last year, and 1.4 million lenses, up 90,000. Due to a slight drop in ASP, revenue is expected to hold steady at JPY 295 billion, with operating profit down by JPY 1.3 billion to JPY 40 billion, due in part by stronger yen. Moving on to Precision Equipment business. We project the revenue to decline by JPY 16.9 billion to JPY 185 billion.
Toshikazu Umatate: We anticipate a continued favorable market trend led by mid- to high-end cameras for professionals and hobbyists. We are aiming to increase our unit sales, especially within the volume zone, such as Z5 II, launched April, and Z 50 II, released last November, which incorporate advanced technology from Z9s. We are targeting sales of 950,000 camera bodies, up 100,000 from last year, and 1.4 million lenses, up 90,000. Due to a slight drop in ASP, revenue is expected to hold steady at JPY 295 billion, with operating profit down by JPY 1.3 billion to JPY 40 billion, due in part by stronger yen. Moving on to Precision Equipment business. We project the revenue to decline by JPY 16.9 billion to JPY 185 billion.
We are aiming to increase our unit sales, especially when our volume zones, such as Z. Five two launched April and Z 52, released last November which incorporate advanced technology from us at <unk>. We are targeting sales of 950000 camera bodies up 100000 from last year.
And the 1.4 meeting lenses up 90000.
Due to a slight drop in SP revenue is expected to hold steady at the 295 billion again.
With operating profit down by 1.3 billion yen to 40 billion due in part by stronger again.
Moving onto precision equipment business, we project our revenue declined by 16.9 billion yen to 185 billion yen.
Operator: Moving on to precision equipment business. We project revenue to decline by 16.9 billion yen to 185 billion yen. FED lithography system cells are expected to dip slightly from 38 to 35 units, though demand for high-resolution panels remains solid. In semiconductor lithography, orders for our new I-Line stepper 2205IL should increase from 28 to 34 units, but the sales of new ARF lithography systems and service income will decline due to slow market recovery. Operating profit, however, is forecast to increase by ¥10.5 billion to ¥12 billion overall, helped by an improvement in product mix in FED and improved profitability in semiconductor lithography due to the disappearance of last year's one-time costs and optimization of service base.
F. P D lithography system sales, we're expecting dipped slightly from 38 to 35 units, though demand for high resolution panels remained solid.
[Company Representative] (Nikon): FPD lithography system sales are expected to dip slightly from 38 to 35 units, though demand for high-resolution panels remains solid. In semiconductor lithography, orders for our new i-line stepper, NSR-2205iL1, should increase from 20 to 34 units, but the sales of new ArF lithography systems and service income will decline due to slow market recovery. Operating profit, however, is forecast to increase by JPY 10.5 to 12 billion overall, helped by an improvement in product mix in FPD and improved profitability in semiconductor lithography due to the disappearance of last year's one-time costs and optimization of service bases. Regarding the semiconductor lithography business, we will assess future customer investment trend, proceed with streamlining our production support structure and lower breaking point, thereby establishing a structure capable of generating stable profits from next fiscal year onwards.
Toshikazu Umatate: FPD lithography system sales are expected to dip slightly from 38 to 35 units, though demand for high-resolution panels remains solid. In semiconductor lithography, orders for our new i-line stepper, NSR-2205iL1, should increase from 20 to 34 units, but the sales of new ArF lithography systems and service income will decline due to slow market recovery. Operating profit, however, is forecast to increase by JPY 10.5 to 12 billion overall, helped by an improvement in product mix in FPD and improved profitability in semiconductor lithography due to the disappearance of last year's one-time costs and optimization of service bases.
In semiconductor lithography orders for our new <unk> Stepper 2205, I L should increase from 28 to 34 years about the sales of new E or F lithography systems and the service income will decline due to a slow market recovery.
Operating profit however is forecast to increase it by 10.5 billing into 12 bidding in overall helped by on an improvement in product mix in F. B D and improve the profitability in semiconductor lithography do do that these appearance of last years in one.
Time costs and optimization of service basis.
According to the semiconductor lithography business, who we will assess future customer investment trend for us.
Operator: Regarding the semiconductor lithography business, we will assess future customer investment trends, proceed with streamlining our production support structure and lower breaking point, thereby establishing a structure capable of generating stable profits from next fiscal year onward. At the same time, we will promote the development of next-generation equipment such as a digital lithography system for back-end processes and a new ARF immersion lithography system aiming for significant recovery in earnings around 2030.
Toshikazu Umatate: Regarding the semiconductor lithography business, we will assess future customer investment trend, proceed with streamlining our production support structure and lower breaking point, thereby establishing a structure capable of generating stable profits from next fiscal year onwards.
Seed with streamlining our production and support structure and lower breakeven, but boy, thereby establishing a structure capable of generating stable profit from next fiscal year onwards.
At the same time will promote the development of next generation of equipment, such as hand, Theres total lithography system for our back end processes and new a arf immersion lithography system aiming for a significant recovery in earning around 2030.
[Company Representative] (Nikon): At the same time, we will promote the development of next-generation equipment such as digital lithography system for back-end processes and new ArF immersion lithography system, aiming for a significant recovery in earning around 2030. For Healthcare business on slide 19, we aim to boost profitability in Life Science Solutions through increased sales of high value-added products. In Eye Care Solutions, we are working to develop new sales channels of optometry channel in Europe and expand further into Asia and other regions. In Contract Cell Development and Manufacturing, we plan to make upfront investment to support growth, but existing project remains strong and will provide stable income. Total revenue is expected to fall JPY 1.4 billion to JPY 115 billion due to the yen's appreciation.
Toshikazu Umatate: At the same time, we will promote the development of next-generation equipment such as digital lithography system for back-end processes and new ArF immersion lithography system, aiming for a significant recovery in earning around 2030. For Healthcare business on slide 19, we aim to boost profitability in Life Science Solutions through increased sales of high value-added products. In Eye Care Solutions, we are working to develop new sales channels of optometry channel in Europe and expand further into Asia and other regions. In Contract Cell Development and Manufacturing, we plan to make upfront investment to support growth, but existing project remains strong and will provide stable income. Total revenue is expected to fall JPY 1.4 billion to JPY 115 billion due to the yen's appreciation.
For health care business on Slide 19, we aimed to boost profitability in life science solutions through increased sales of high value added products in eye care solutions. We are working to develop new sales channels of automata tourist channel in Europe, and expand further into Asia and other regions.
Operator: For healthcare business on side 19, we aim to boost profitability in life science solutions through increased sales of high-value added products. In eye care solutions, we are working to develop new sales channels of optometrist channel in Europe and expand further into Asia and other regions. In contract sale development and manufacturing, we plan to make upfront investment to support growth, but existing projects remain strong and will provide stable income. Total revenue is expected to fall 1.4 billion yen to 115 billion yen due to the yen's appreciation. But operating profit is forecast to rise by 1.8 billion yen to 8.5 billion yen thanks to cost optimization and higher life science solutions margin.
In contract development and manufacturing, we plan to make upfront investment to support growth, but existing project remains strong and will provide stable income.
Total revenue is expected to for 1.4 billion yen to 115 billion yen due to the Yens appreciation.
But operating profit is forecasted to rise by one 8 billion to 8.5 billion, thanks to cost optimization and higher life Science solutions margins.
[Company Representative] (Nikon): Operating profit is forecast to rise by JPY 1.8 billion to JPY 8.5 billion, thanks to cost optimization and higher Life Science Solutions margins. Components business on slide 20. We plan to expand our customer base for optical parts and optical components, and expect stronger sales in the second half as market conditions recover. In metrology equipment, our video measuring system for electronics component and semiconductors, and X-ray and CT system for aerospace are expected to perform well. Furthermore, we anticipate increased demand for FPD photomask substrates for high-resolution panels. Altogether, we project revenue to grow by JPY 4.9 billion to JPY 79 billion, and profit by JPY 2.9 billion to JPY 10 billion due to revenue gains, improvement in profitability resulting from restructuring, and the absence of one-time costs. Digital Manufacturing business.
Toshikazu Umatate: Operating profit is forecast to rise by JPY 1.8 billion to JPY 8.5 billion, thanks to cost optimization and higher Life Science Solutions margins. Components business on slide 20. We plan to expand our customer base for optical parts and optical components, and expect stronger sales in the second half as market conditions recover. In metrology equipment, our video measuring system for electronics component and semiconductors, and X-ray and CT system for aerospace are expected to perform well. Furthermore, we anticipate increased demand for FPD photomask substrates for high-resolution panels. Altogether, we project revenue to grow by JPY 4.9 billion to JPY 79 billion, and profit by JPY 2.9 billion to JPY 10 billion due to revenue gains, improvement in profitability resulting from restructuring, and the absence of one-time costs. Digital Manufacturing business.
Yeah.
[noise] components business on slide 21.
Operator: Components business on slide 20. We plan to expand our customer base for optical parts and optical components and expect stronger sales in the second half as market conditions recover. In metrology equipment, our video measuring system for electronics components and semiconductors and X-ray and CT systems for aerospace are expected to perform well. Furthermore, we anticipate increased demand for FPD photomag substrates for high-resolution panels. Altogether, we project revenue to grow by 4.9 billion yen to 79 billion yen and profit by 2.9 billion yen to 10 billion yen due to revenue gains, improvement in profitability resulting from restructuring and the absence of one-time costs.
We plan to expand our customer base for optical parts and optical components and expect stronger sales in the second half as market conditions recover.
In metrology equipment, our video measuring system for electronics component and the semiconductors and X-ray N C. D system for aerospace are expected to perform well. Furthermore, we anticipate increased demand for a P. D photo mask substrates for high resolution panels altogether, we project revenue to grow by four.
9 billion yen to 70 miles being union and broken it by 2.9 billion to 10 billion yen due to revenue gains the improvement in profitability, resulting from restructuring and the absence of one time costs.
There is no manufacturing business.
We expect the overall metal <unk> printer market to stay flat for small to mid sized system, but anticipate continued growth in our large format segment.
Operator: Digital Manufacturing Business We expect the overall metal 3D printer market to stay flat for small to mid-sized systems, but anticipate continued growth in the large format segment. Nikon SLM solution set a record high in orders last year with 19% growth, with 52% growth in large format equipment. The backlog at the end of March was 13.5 billion yen, up 3.5 billion yen year on year. For FY 2026, we aim to expand further in aerospace and defense, raising revenue by 9.7 billion yen to 33 billion yen. We'll also improve profitability by optimizing business management through production optimization, tighter cost control, and R&D prioritization.
[Company Representative] (Nikon): We expect the overall metal 3D printer market to stay flat for small to mid-size system, but anticipate continued growth in the large format segment. Nikon SLM Solutions set a record high in orders last year with 19% growth, with 52% growth in large format equipment. The backlog at the end of March was JPY 13.5 billion, up JPY 3.5 billion year-on-year. For FY2026, we aim to expand further in aerospace and defense, raising revenue by JPY 9.7 billion to JPY 33 billion. We'll also improve profitability by optimizing business management through production optimization, tighter cost control, and R&D prioritization. We remain on track to make SLM profitable this year. For the whole segment, we are now targeting profitability by FY2028, a one-year delay from our initial plan.
Toshikazu Umatate: We expect the overall metal 3D printer market to stay flat for small to mid-size system, but anticipate continued growth in the large format segment. Nikon SLM Solutions set a record high in orders last year with 19% growth, with 52% growth in large format equipment. The backlog at the end of March was JPY 13.5 billion, up JPY 3.5 billion year-on-year. For FY2026, we aim to expand further in aerospace and defense, raising revenue by JPY 9.7 billion to JPY 33 billion. We'll also improve profitability by optimizing business management through production optimization, tighter cost control, and R&D prioritization. We remain on track to make SLM profitable this year. For the whole segment, we are now targeting profitability by FY2028, a one-year delay from our initial plan.
Nigel SLM solution set a record high in orders last year with 19% growth with a 52% growth in large format equipment.
The backlog at the end of March was a $13 5 billion up 3.5 million here on air.
For FY 2026, we aimed to expand further in aerospace and defense raising revenue by $9 7 billion yen to 33 billion yeah.
We will also improve profitability and by optimizing business management and through production optimization tighter cost control and R&D prioritization.
We remain on track to make SLM profitable this year.
Operator: We remain on track to make SLM profitable this year. For the whole segment, we are now targeting profitability by FY2028, a one-year delay from our initial plan.
For the whole segment, we are now targeting profitability by FY 2028, a one year delay from our initial plan.
Lastly concerning the operating profit of the digital manufacturing business I will detail the variance between the previous forecast and the prior year's actual result, as well as the ear on ear changes in our growing fiscal year outlook.
Operator: Lastly, concerning the operating profit of the digital manufacturing business, I will detail the variance between the previous forecast and the prior year's actual results, as well as the year-on-year changes in our current fiscal year outlook. Last year's show fall came mainly from delays in customer deliveries of SM's large format system due to customer circumstances, SM's mid-size system also saw delays and higher production costs. Nikon's DED system underperformed as well. The weekend and higher expenses further impact the results. This year, profit recovery will mostly come from higher sales of SLM's large format system and a better product mix.
[Company Representative] (Nikon): Lastly, concerning the operating profit of the Digital Manufacturing business, I will detail the variance between the previous forecast and the prior year's actual results, as well as the year-on-year changes in our current fiscal year outlook. Last year's shortfall came mainly from delays in customer deliveries of SLM's large format system due to customer circumstances. Small to mid-size system also saw delays and higher production costs. Nikon's DED system underperformed as well. The weak yen and higher expenses further impact the results. This year, profit recovery will mostly come from higher sales of SLM's large format system and a better product mix. For small to mid-size system, we'll cut costs by optimizing production in addition to an increase in unit sales. We'll also continue to rein in expenses across other parts of the business, aiming to reduce the segment's operating losses to JPY 8.5 billion.
Toshikazu Umatate: Lastly, concerning the operating profit of the Digital Manufacturing business, I will detail the variance between the previous forecast and the prior year's actual results, as well as the year-on-year changes in our current fiscal year outlook. Last year's shortfall came mainly from delays in customer deliveries of SLM's large format system due to customer circumstances. Small to mid-size system also saw delays and higher production costs. Nikon's DED system underperformed as well. The weak yen and higher expenses further impact the results. This year, profit recovery will mostly come from higher sales of SLM's large format system and a better product mix. For small to mid-size system, we'll cut costs by optimizing production in addition to an increase in unit sales. We'll also continue to rein in expenses across other parts of the business, aiming to reduce the segment's operating losses to JPY 8.5 billion.
Last year's shortfall came mainly from delays in customer deliveries of S. M. Large format system due to customer circumstances small to mid sized system also saw delays and higher production costs Nikon D E D system underperformed as well.
Yeah.
The weekend and higher expenses to further impact our results.
This year, our profit recovery will mostly come from higher sales of S. L. EMS large format system and a better product mix.
For small to mid sized system will cut costs by optimizing production. In addition to an increase in unit sales will also continue to rein in expenses across other parts of the business aiming to reduce the segment's operating losses to a point 5 billion yen.
Operator: For small to mid-sized systems, we'll cut costs by optimizing production, in addition to an increase in unit sales. We'll also continue to rein in expenses across other parts of the business, aiming to reduce the segment's operating losses to 8.5 billion yen.
To sum up last fiscal year, so a significant profit decline, which was impacted by lower semiconductor revenue in precision equipment and components and the recognition of 27.2 billion yen in onetime costs.
Operator: To sum up, last fiscal year saw a significant profit decline, which was impacted by lower semiconductor revenue in precision equipment and components, and the recognition of 27.2 billion yen in one-time costs. For this current fiscal year outlook, overall revenue is expected to be the same level as last fiscal year, however, we are anticipating improved operating profit in all segments excluding imaging products, which is sensitive to effects. We anticipate ¥36 billion in operating profit, a significant ¥33.6 billion increase, largely due to the absence of the one-time costs booked in the last year. Although this is the final year of our midterm plan, we foresee a substantial show fall compared to our operating profit target of ¥70 billion.
[Company Representative] (Nikon): To sum up, last fiscal year saw a significant profit decline, which was impacted by lower semiconductor revenue in Precision Equipment and Components and the recognition of JPY 27.2 billion in one-time costs. For this current fiscal year outlook, overall revenue is expected to be the same level as last fiscal year. However, we are anticipating improved operating profit in all segments excluding Imaging Products, which is sensitive to FX. We anticipate JPY 36 billion in operating profit, a significant JPY 33.6 billion increase, largely due to the absence of the one-time cost booked in the last year. Although this is our final year of our midterm plan, we foresee a substantial shortfall compared to our operating profit target of JPY 70 billion. We strongly recognize that improved profitability remains a challenge. We are committed to a company-wide effort to recover our earnings.
Toshikazu Umatate: To sum up, last fiscal year saw a significant profit decline, which was impacted by lower semiconductor revenue in Precision Equipment and Components and the recognition of JPY 27.2 billion in one-time costs. For this current fiscal year outlook, overall revenue is expected to be the same level as last fiscal year. However, we are anticipating improved operating profit in all segments excluding Imaging Products, which is sensitive to FX. We anticipate JPY 36 billion in operating profit, a significant JPY 33.6 billion increase, largely due to the absence of the one-time cost booked in the last year. Although this is our final year of our midterm plan, we foresee a substantial shortfall compared to our operating profit target of JPY 70 billion. We strongly recognize that improved profitability remains a challenge. We are committed to a company-wide effort to recover our earnings.
For this current fiscal year outlook overall revenue is expected to be the same level as the last fiscal year. However, we are anticipating improved operating profit in all segments, excluding imaging product, which is sensitive to FX.
We anticipate a 36 million in operating profit a significant $33 6 billion yen increase largely due to the absence of the one time costs booked in the last year. Although this is our final year of our midterm plan, we foresee a substantial shortfall compared to our operating profit target of 70 billion yen.
We strongly recognized our improved profitability remains a challenge we are committed to a companywide effort to recover our earnings.
Operator: We strongly recognize that improved profitability remains a challenge. We are committed to a company-wide effort to recover our earnings.
Our chairman and CEO Umberto will elaborate on the progress of midterm plan, including this point.
Uma Tate: Our chairman and CEO, Uma Tate, will elaborate on the progress of the midterm plan, including this point. Thank you.
[Company Representative] (Nikon): Our chairman and CEO, Umatate, will elaborate on the progress of midterm plan, including this point. Thank you. Good afternoon. My name is Umatate. I'm the chairman and CEO of Nikon. Thank you again for joining us today.This year marks the final year of our current midterm management plan. Looking back at the past three years, we made steady progress in strengthening our business strategies and improving our management foundation. By business segment, while imaging outperformed due to the underperformance in industrial areas like semiconductor-related, coupled with delays in growth drivers, the numerical targets outlined at the bottom of this slide are expected to fall short of our plan, except the revenue. Profitability improvement remains a work in progress, and we recognize that we have not yet fully met the expectation of our shareholders.
Toshikazu Umatate: Our chairman and CEO, Umatate, will elaborate on the progress of midterm plan, including this point. Thank you. Good afternoon. My name is Umatate. I'm the chairman and CEO of Nikon. Thank you again for joining us today.This year marks the final year of our current midterm management plan. Looking back at the past three years, we made steady progress in strengthening our business strategies and improving our management foundation. By business segment, while imaging outperformed due to the underperformance in industrial areas like semiconductor-related, coupled with delays in growth drivers, the numerical targets outlined at the bottom of this slide are expected to fall short of our plan, except the revenue. Profitability improvement remains a work in progress, and we recognize that we have not yet fully met the expectation of our shareholders.
Thank you.
Speaker Change: Good afternoon. My name is I'm, a thought there and I'm, the chairman and CEO of an icon. Thank you again for joining us today.
Uma Tate: Good afternoon. My name is Umutate. I'm the chairman and CEO of Nikon. Thank you again for joining us today.
This year marks the final year of our current midterm management plan.
Uma Tate: This year marks the final year of our current midterm management plan. Looking back at the past three years, we've made steady progress in strengthening our business strategies and improving our management foundation. By business segment, while imaging outperformed due to the underperformance in industrial areas like semiconductor-related coupled with delays in growth drivers, the numerical targets outlined at the bottom of this slide are expected to fall short of our plan, except the revenue. Profitability improvement remains a work in progress and we recognize that we have not yet fully met the expectations of our shareholders.
Speaker Change: Looking back at the past three years, we've made steady progress in strengthening our business strategies and improving our management Foundation.
Speaker Change: By business segment, while imaging outperformed due to the under performance in industrial areas like semiconductor related coupled with delays in growth drivers the numerical targets outline of the bone of this size are expected to fall short of our plan except that revenue.
Speaker Change: Profitability improvement remains a work in progress and we recognize that we have not yet fully met the expectation of our shareholders.
Speaker Change: Taking these points into account we are positioned FY 2025, as a year to build a foundation for where we want to be in 2030 will focus on both recovering of short term performance N and making investment for long term growth.
Uma Tate: Taking these points into account, we've positioned FY 2025 as a year to build a foundation for where we want to be in 2030. We'll focus on both recovering short-term performance and making investment for long-term growth.
[Company Representative] (Nikon): Taking these points into account, we positioned FY 2025 as the year to build a foundation for where we want to be in 2030. We'll focus on both recovering short-term performance and making investment for long-term growth. Please look at slide three. This slide provides a numerical overview of our progress. As shown on the left side, the first two years of the plan went very well. By FY 2023, we had already achieved the original FY 2025 revenue target of JPY 700 billion two years ahead of schedule. Our operating profit was also mostly on track. However, over the next two years, while Imaging continued to perform well, other segments suffered from upfront investment burdens and the semiconductor market downturn.
Toshikazu Umatate: Taking these points into account, we positioned FY 2025 as the year to build a foundation for where we want to be in 2030. We'll focus on both recovering short-term performance and making investment for long-term growth. Please look at slide three. This slide provides a numerical overview of our progress. As shown on the left side, the first two years of the plan went very well. By FY 2023, we had already achieved the original FY 2025 revenue target of JPY 700 billion two years ahead of schedule. Our operating profit was also mostly on track. However, over the next two years, while Imaging continued to perform well, other segments suffered from upfront investment burdens and the semiconductor market downturn.
Please look at slide three this slide provides a numerical overview of our progress is shown on the left side. The first two years of the plan went very well.
Uma Tate: please look at slide three. This slide provides a numerical overview of our progress, as shown on the left side. The first two years of the plan went very well. By FY2023, we had already achieved the original FY2025 revenue target of 700 billion yen, two years ahead of schedule. Our operating profit was also mostly on trade. However, over the next two years, while imaging continued to perform well, other segments suffered from upfront investment burdens and the semiconductor market downturn. As a result, operating profit for FY 2025 is now forecast at 36 billion yen, well below our 70 billion yen goal.
Speaker Change: By FY 2023, we had already achieved the original FY 2025 revenue target of several hundred billion yen. Two years ahead of schedule. Our operating profit was also mostly on track.
Speaker Change: Over over the next two years, while imaging continued to perform well other segment suffered from upfront investment burdens and semiconductor market downturn.
Speaker Change: As a result operating profit for FY 2025 is now forecast at 36 billion yen.
[Company Representative] (Nikon): As a result, operating profit for FY 2025 is now forecast at JPY 36 billion, well below our JPY 70 billion goal. In response, we've implemented various restructuring and organizational integrations. We've also prioritized how we allocate growth investments, limiting projects that take too long to scale and focusing on three key areas, professional video cameras, next-generation lithography, and metal additive processing. Now, let's move to slide five. This graph plots the five business segments with revenue on the X-axis and operating margin on the Y-axis. The size of each bubble represents total operating profit. The dotted circles show our FY 2025 targets set during planning. The lighter circles reflect our latest forecast. The darker circles show our FY 2030 goals. For the two main businesses on the right, our strategy is to grow Precision Equipment through next-gen lithography and customer diversification.
Toshikazu Umatate: As a result, operating profit for FY 2025 is now forecast at JPY 36 billion, well below our JPY 70 billion goal. In response, we've implemented various restructuring and organizational integrations. We've also prioritized how we allocate growth investments, limiting projects that take too long to scale and focusing on three key areas, professional video cameras, next-generation lithography, and metal additive processing. Now, let's move to slide five. This graph plots the five business segments with revenue on the X-axis and operating margin on the Y-axis. The size of each bubble represents total operating profit. The dotted circles show our FY 2025 targets set during planning. The lighter circles reflect our latest forecast. The darker circles show our FY 2030 goals. For the two main businesses on the right, our strategy is to grow Precision Equipment through next-gen lithography and customer diversification.
Speaker Change: Well below our 70 billion yen go.
In response, we've implemented various restructuring and organizational integrations.
Uma Tate: In response, we've implemented various restructuring and organizational integrations. We've also prioritized how we allocate gross investments, limiting projects that take too long to scale, and focusing on three key areas, professional video cameras, next-generation lithography, and metal additive processing.
Speaker Change: We've also prioritized, how we allocate gross investments.
Speaker Change: Limiting project that takes too long to scale and focusing on three key areas professional video cameras next generation lithography and metal additive processing.
Speaker Change: Now, let's move to slide five.
Uma Tate: Now, let's move to slide 5. This graph plots the five business segments with revenue on the x-axis and operating margin on the y-axis. The size of each bubble represents total operating profit. The dotted circles show our FY 2025 targets set during planning. The lighter circles reflect our latest forecast. and the darker circles show our FY2030 goals. For the two main businesses on the right, our strategy is to grow precision equipment through next-gen lithography and customer diversification. For imaging products, we aim to stable profits by launching competitive professional video cameras and attracting new users, especially the younger generation.
Speaker Change: This graph plots the five business segments, whereas revenue on the X axis and operating margin on the Y axis the size of each bubble represents total operating profit.
Speaker Change: The data circles show, our FY 2025 targets set during planning.
Speaker Change: The lighter circles reflect our latest forecasts.
Speaker Change: And the darker circles show, our FY 'twenty 30 Kohl's.
Speaker Change: For the two main businesses on the right. Our strategy is to grow precision equipment through nexgen lithography and customer diversification for imaging products. We aim to stable profits by launching competitive professional video cameras and attracting new you.
[Company Representative] (Nikon): For Imaging Products, we aim to stabilize profits by launching competitive professional video cameras and attracting new users, especially the younger generation. On the left-hand side, we have our three strategic businesses. In Healthcare and Components, which have relatively high margins, we aim to steadily grow earnings. For Digital Manufacturing, the goal is to beat industry growth and reduce losses quickly through metal additive processing. We want to create more value across all five businesses and reach JPY 1 trillion in revenue and a 10% operating margin by FY 2030. Next, I will walk you through what each business will focus on in the following two pages. For Imaging Products, we are prioritizing new user acquisition, especially among younger generations. We are also leveraging synergies with RED, a US subsidiary, to expand in the professional video camera market.
Toshikazu Umatate: For Imaging Products, we aim to stabilize profits by launching competitive professional video cameras and attracting new users, especially the younger generation. On the left-hand side, we have our three strategic businesses. In Healthcare and Components, which have relatively high margins, we aim to steadily grow earnings. For Digital Manufacturing, the goal is to beat industry growth and reduce losses quickly through metal additive processing. We want to create more value across all five businesses and reach JPY 1 trillion in revenue and a 10% operating margin by FY 2030. Next, I will walk you through what each business will focus on in the following two pages. For Imaging Products, we are prioritizing new user acquisition, especially among younger generations. We are also leveraging synergies with RED, a US subsidiary, to expand in the professional video camera market.
Speaker Change: Especially the younger generation.
Speaker Change: On the left hand side, we have our three strategic businesses.
Uma Tate: On the left-hand side, we have our three strategic businesses. In healthcare and components, which have relatively high margins, we aim to steadily grow earnings. For digital manufacturing, the goal is to beat industry growth and reduce losses quickly through metal additive processing.
Speaker Change: In healthcare and components, which have relatively high margins and we aim to steadily grow earnings for digital manufacturing are the goal is to beat industry grows and reduce losses quickly into metal additive processing.
Speaker Change: We want to create more value across all five businesses and reach one trillion yen in revenue and a 10% operating margin by FY 2030.
Uma Tate: We want to create more value across all five businesses and reach 1 trillion yen in revenue and a 10% operating margin by FY 2030.
Speaker Change: Next I will walk you through what each business will focus on in the following two pages.
Uma Tate: Next, I will walk you through what each business will focus on in the following two pages. For imaging products, we are prioritizing New Year's acquisitions, especially among younger generations. We are also leveraging Synergies with RED, a U.S. subsidiary to expand in the professional video camera market. In healthcare, we are working to strengthen our system microscopes and applications while also scaling up our rapidly growing contract cell development and manufacturing business. Size 7 in Precision Equipment, our FPD segment remains solid. For semiconductor lithography, we are streamlining support infrastructure for key clients while also developing digital lithography for semiconductor back-end processes and a new platform, ARF Immersion Lithography System.
Speaker Change: For imaging products, we are prioritizing new user acquisition, especially among younger generations.
Speaker Change: We are also leveraging synergies with the Red a U S subsidiary and to expand in the professional video camera market.
Speaker Change: In health care, we are working to strengthen our system microscopes and obligations. While also scaling up our rapidly growing contract so development and manufacturing business.
[Company Representative] (Nikon): In Healthcare, we are working to strengthen our system microscopes and applications, while also scaling up our rapidly growing Contract Cell Development and Manufacturing business. Slide seven. In Precision Equipment, our FPD segment remains solid. For semiconductor lithography, we are streamlining support infrastructure for key clients, while also developing digital lithography for semiconductor back-end processes and a new platform, ArF immersion lithography system. In Components, we are increasing synergy from the integration of the former Industrial Metrology business and aiming for growth, particularly overseas. In Digital Manufacturing, we will focus on expanding our presence in defense and aerospace by leveraging SLM's large format metal 3D printers. Slide eight summarizes our efforts to strengthen Nikon's management foundation.
Toshikazu Umatate: In Healthcare, we are working to strengthen our system microscopes and applications, while also scaling up our rapidly growing Contract Cell Development and Manufacturing business. Slide seven. In Precision Equipment, our FPD segment remains solid. For semiconductor lithography, we are streamlining support infrastructure for key clients, while also developing digital lithography for semiconductor back-end processes and a new platform, ArF immersion lithography system. In Components, we are increasing synergy from the integration of the former Industrial Metrology business and aiming for growth, particularly overseas. In Digital Manufacturing, we will focus on expanding our presence in defense and aerospace by leveraging SLM's large format metal 3D printers. Slide eight summarizes our efforts to strengthen Nikon's management foundation.
Speaker Change: Slide seven.
Speaker Change: In precision equipment, our Apd segment remains solid.
Speaker Change: For semiconductor lithography, we are streamlining support infrastructure for key clients, a while also developing digital lithography for semiconductor backend processes and a new platform Erith immersion is geography system.
Speaker Change: In components, we are increasing synergy from the integration of the former industrial metrology business and aiming for growth, particularly overseas.
Uma Tate: In components, we are increasing synergy from the integration of the former industrial metrology business and aiming for growth, particularly overseas. And in digital manufacturing, we will focus on expanding our presence in defense and aerospace by leveraging SLM's large-format metal 3D printers.
Speaker Change: And in digital manufacturing, we will focus on expanding our presence in defense and aerospace by leveraging S. L. Ams large format metal three D printers.
Speaker Change: Slide eight summarizes our efforts to strengthen and icons management Foundation.
Uma Tate: Slide 8 summarizes our efforts to strengthen Nikon's management foundation. On the left, you will see our continued focus on human capital management and sustainability. On the right, we are investing in digital transformation, manufacturing innovation, and organizing of executive management for group companies.
Speaker Change: On the left you will see our continued focus on human capital management and sustainability.
[Company Representative] (Nikon): On the left, you will see our continued focus on human capital management and sustainability. On the right, we are investing in digital transformation, manufacturing innovation, and organizing of executive management for group companies. Slide nine provides a summary of everything we've discussed today. Finally, this year marks Nikon's 108th anniversary and the 100th anniversary of our first microscope. Our microscope have helped visualize the invisible, supporting research in life sciences, medicine, and advanced industry like semiconductors. Last year, in response to Japan's demographic challenges, we've developed a microscope system designed to improve the success rate of artificial insemination in fertility treatment. The system is shown here on this slide. In this way, Nikon is committed to contributing to society while also enhancing long-term corporate value for all stakeholders, including our shareholders. Thank you for your continued support, and thank you again for your attention.
Toshikazu Umatate: On the left, you will see our continued focus on human capital management and sustainability. On the right, we are investing in digital transformation, manufacturing innovation, and organizing of executive management for group companies. Slide nine provides a summary of everything we've discussed today. Finally, this year marks Nikon's 108th anniversary and the 100th anniversary of our first microscope. Our microscope have helped visualize the invisible, supporting research in life sciences, medicine, and advanced industry like semiconductors.
Speaker Change: On the right are we are investing in digital transformation manufacturing innovation and organizing of executive management for group companies.
Speaker Change: So I nine provides a summary of everything we've discussed today.
Uma Tate: Slide 9 provides a summary of everything we've discussed today.
Finally, this year marks Nikon 100, an eighth anniversary and our 100th anniversary of our first micro scope.
Uma Tate: Finally, this year marks Nikon's 108th anniversary and the 100th anniversary of our first microscope. Our microscopes have helped visualize the invisible, supporting research in life sciences, medicine, and advanced industries like semiconductors. Last year, in response to Japan's demographic challenges, We've developed a microscope system designed to improve the success rate of artificial insemination in fertility treatment. The systems are shown here on this slide. In this way, Nikon is committed to contributing to society while also enhancing long-term corporate value for all stakeholders, including our shareholders. Thank you for your continued support. and thank you again for your attention.
Speaker Change: Our microscope hub helps visualize the invisible supporting research in life Sciences Medicine, and advance industry like semiconductors.
Toshikazu Umatate: Last year, in response to Japan's demographic challenges, we've developed a microscope system designed to improve the success rate of artificial insemination in fertility treatment. The system is shown here on this slide. In this way, Nikon is committed to contributing to society while also enhancing long-term corporate value for all stakeholders, including our shareholders. Thank you for your continued support, and thank you again for your attention.
Speaker Change: Last year in response to Japan demographic challenges.
Speaker Change: We've developed a microscope system designed to improve the success rate of artificial insemination in fertility treatments.
Speaker Change: The system is as shown here on this slide.
Speaker Change: In this way Nikon is committed to contributing to society, while also enhancing long term corporate value for all stakeholders, including our shareholders.
Speaker Change: Thank you for your continued support.
Speaker Change: And thank you again for your attention.
