Topcon : FY2022 Q3 Summary of Financial Results

Consolidated Financial Results for the Third Quarter of FY2022 Ending March 2023

(Japanese GAAP)

TOPCON CORPORATION

Release Date: January 30, 2023

1. Summary of Third Quarter Business Results for FY2022 ending March 2023 (April 1, 2022 - December 31, 2022)

									"%" indicate year-to-year increase (decrease)
(1) Consolidated business results						(Rounded down to the nearest million yen)
		Net sales		Operating profit	Ordinary profit		Profit attributable to
				owners of parent
		million yen		%	million yen		%	million yen		%	million yen	%
3rd quarter of FY2022		156,790		25.6		13,974		35.1	12,565		35.9	7,859	36.6
3rd quarter of FY2021		124,834		34.2		10,347		610.9	9,246	*	－	5,752	－
Note:	Comprehensive income		11,238
	3rd quarter of FY2022		million yen (	51.2 % )
	3rd quarter of FY2021		7,433	million yen ( － % )
		Basic earnings per Diluted earnings per
		share		share
3rd quarter of FY2022			yen			yen
74.67			74.67
3rd quarter of FY2021	54.68			54.68

• Year-to-yearincrease (decrease) percentage of ordinary profit for the 3rd quarter of FY2021 is shown as " −" because the percentage was in excess of 1,000%.

1. Consolidated financial position

		Total assets		Net assets	Shareholders' equity	Shareholders' equity
			ratio	per share
		million yen		million yen	%	yen
3rd quarter of FY2022		203,006		91,515	44.3	853.45
FY2021 ended March 2022		184,983		85,150	45.1	793.57
Note:	Shareholders' equity	89,864
	3rd quarter of FY2022	million yen
	FY2021 ended March 2022	83,491	million yen

2. Dividends

		Dividends per share
	end of 1st qtr	end of 2nd qtr	end of 3rd qtr	year-end	Total
	yen	yen	yen	yen	yen
FY2021 ended March 2022	－	10.00	－	26.00	36.00
FY2022 ending March 2023	－	20.00	─
FY2022 ending March 2023 (forecast)				22.00	42.00

*Revision to the most recently disclosed dividend forecasts : No

3. Business Forecasts for FY2022 ending March 2023 (April 1, 2022 - March 31, 2023)

									"%" indicate year-to-year increase (decrease)
	Net sales		Operating profit		Ordinary profit		Profit attributable to	Basic earnings
				owners of parent	per share
	million yen		%	million yen		%	million yen		%	million yen	%	yen
Annual	205,000		16.2	19,500		22.5	18,000		21.5	12,500	16.8	118.76
*Revision to the most recently disclosed business forecasts : Yes
Note:	The forecasts above were prepared on the premise of future forecasts available at the time of the release of this document, such as trends
	of business, competition environment, and currency exchange rates. Due to unforeseen circumstances, however, the actual results may differ
	from these forecast data.

Consolidated quarterly financial statements

Consolidated quarterly balance sheets

		(Unit: million yen)
	FY2021	3rd quarter of
	ended March 2022	FY2022
Assets
Current assets	20,124	21,778
Cash and deposits
Notes and accounts receivable - trade	45,864	43,634
Merchandise and finished goods	19,510	23,351
Work in process	1,805	2,134
Raw materials and supplies	18,309	25,651
Other	10,658	10,694
Allowance for doubtful accounts	(2,232)	(2,245)
Total current assets	114,041	124,999
Non-current assets	24,863	31,817
Property, plant and equipment
Intangible assets	9,741	9,183
Goodwill
Other	20,172	19,121
Total intangible assets	29,914	28,304
Investments and other assets	16,164	17,883
Total non-current assets	70,942	78,006
Total assets	184,983	203,006
Liabilities
Current liabilities	15,687	16,879
Notes and accounts payable - trade
Short-term borrowings	5,586	24,267
Lease liabilities	1,415	2,657
Income taxes payable	2,152	1,251
Provision for product warranties	1,444	1,859
Current portion of bonds payable	10,000	-
Other	25,108	20,186
Total current liabilities	61,394	67,101
Non-current liabilities	20,000	20,000
Bonds payable
Long-term borrowings	2,547	2,084
Lease liabilities	3,812	8,105
Provision for retirement benefits for directors (and other officers)	59	40
Retirement benefit liability	4,333	4,936
Other	7,685	9,222
Total non-current liabilities	38,438	44,389
Total liabilities	99,833	111,491
Net assets
Shareholders' equity	16,706	16,780
Share capital
Capital surplus	20,608	20,682
Retained earnings	45,670	48,688
Treasury shares	(3,171)	(3,171)
Total shareholders' equity	79,813	82,979
Accumulated other comprehensive income	900	793
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges	(72)	14
Foreign currency translation adjustment	3,088	6,278
Remeasurements of defined benefit plans	(238)	(200)
Total accumulated other comprehensive income	3,677	6,885
Share acquisition rights	67	54
Non-controlling interests	1,591	1,595
Total net assets	85,150	91,515
Total liabilities and net assets	184,983	203,006

Consolidated quarterly statements of income

		(Unit: million yen)
	3rd quarter of	3rd quarter of
	FY2021	FY2022
Net sales	124,834	156,790
Cost of sales	60,875	75,325
Gross profit	63,959	81,465
Selling, general and administrative expenses	53,611	67,491
Operating profit	10,347	13,974
Non-operating income
Interest income	52	116
Dividend income	35	38
Foreign exchange gains	-	94
Insurance claim income	-	278
Other	209	222
Total non-operating income	297	750
Non-operating expenses
Interest expenses	337	662
Share of loss of entities accounted for using equity method	265	330
Loss on valuation of investment securities	115	574
Foreign exchange losses	29	-
Compensation expenses	188	-
Other	462	592
Total non-operating expenses	1,399	2,159
Ordinary profit	9,246	12,565
Extraordinary income
Subsidy income
495	-
Total extraordinary income	495	-
Extraordinary losses
Impairment losses	203	462
Total extraordinary losses	203	462
Profit before income taxes	9,538	12,103
Income taxes - current	3,675	3,804
Income taxes - deferred	4	317
Total income taxes	3,679	4,122
Profit	5,859	7,981
Profit attributable to non-controlling interests	106	121
Profit attributable to owners of parent	5,752	7,859

[Segment Information by business category]

3rd quarter of FY2021 (April 1, 2021 - December 31, 2021)				(Unit: million yen)
			Reportable segment			Elimination &
		Smart	Positioning	Eye Care			Total
		Infrastructure	Other	Sub-Total	Common
		Company	Business
		Business
	Sales
	Sales to	18,514	64,236	41,218	866	124,834	－	124,834
	unaffiliated customers
	Intercompany sales	9,513	3,576	142	1	13,233	(13,233)	－
	or transfer
	Total	28,027	67,812	41,360	867	138,068	(13,233)	124,834
	Segment Profit	4,405	7,248	1,983	(264)	13,373	(3,025)	10,347
	(Operating Income)

Note: Segment Profit (3,025) on "Elimination & Common" is mainly goodwill amortization expense and corporate expense (advanced research and development expense), both of which are not distributed to each reportable segment .

3rd quarter of FY2022 (April 1, 2022 - December 31, 2022)				(Unit: million yen)
			Reportable segment			Elimination &
		Smart	Positioning	Eye Care			Total
		Infrastructure	Other	Sub-Total	Common
		Company	Business
		Business
	Sales
	Sales to	20,943	85,818	49,118	910	156,790	－	156,790
	unaffiliated customers
	Intercompany sales	9,693	4,670	171	2	14,538	(14,538)	－
	or transfer
	Total	30,636	90,488	49,289	913	171,328	(14,538)	156,790
	Segment Profit	3,275	11,009	3,329	(320)	17,294	(3,320)	13,974
	(Operating Income)

Note: Segment Profit (3,320) on "Elimination & Common" is mainly goodwill amortization expense and corporate expense (advanced research and development expense), both of which are not distributed to each reportable segment .

[Overseas Sales]

3rd quarter of FY2021 (April 1, 2021 - December 31, 2021)					(Unit: million yen)
		North		Europe	China	Asia /	Other	Total
		America		Oceania
	Oversea sales	41,163		32,035	8,532	10,719	8,137	100,587
	Consolidated Sales							124,834
	Ratio to Consolidated Sales (%)	33.0		25.7	6.8	8.6	6.5	80.6
3rd quarter of FY2022 (April 1, 2022 - December 31, 2022)					(Unit: million yen)
		North	Europe	China	Asia /	Other	Total
		America	Oceania
	Oversea sales	62,994		35,564	7,796	13,731	8,738	128,826
	Consolidated Sales							156,790
	Ratio to Consolidated Sales (%)	40.2		22.7	5.0	8.8	5.6	82.2

Notes:1. Sales are classified by country or region based on the location of customers.

2. The main regions which belong to "other" category are Latin America, Middle East, Russia, and Africa.