Topcon (7732) investor relations material

Executive summary

• Consolidated net sales for FY2025 1H were ¥100.6B, down 4.6% year-over-year, with operating income at -¥0.4B and net income at -¥10.0B, impacted by extraordinary losses and deferred tax asset reversals.

• Positioning Business saw solid domestic IT Agriculture and surveying instrument sales, but overall sales declined due to weak IT Construction demand in Europe and the U.S.; profits rose from SG&A expense reductions.

• Eye Care Business experienced strong North American sales, but some revenue was deferred, leading to a sales and profit decline.

• Company shares are scheduled for delisting on December 2, 2025, following a tender offer.

Financial highlights

• Net sales decreased by ¥4.9B (-5%) year-over-year to ¥100,640 million; excluding FX effects, sales fell ¥2.8B (-3%).

• Gross profit was ¥53.5B, down 5% year-over-year, with a gross profit ratio of 53.2% (up 0.1pt).

• Operating income dropped from ¥3.0B to -¥0.4B; ordinary income fell to -¥1.2B.

• Extraordinary losses totaled ¥1.5B, including TOB-related expenses and a loss from a money transfer scam; net income was -¥10.0B, mainly due to deferred tax asset reversal of ¥7.0B.

• Basic earnings per share dropped to ¥(94.82) from ¥0.58 year-over-year.

Segment performance

• Positioning Business: Net sales ¥65.0B (-5% YoY), operating income ¥5.4B (+32% YoY), with improved margin to 8.3%.

• Eye Care Business: Net sales ¥34.9B (-6% YoY), operating income -¥1.3B, margin dropped to -3.9%.

• Overseas sales accounted for 80.8% of total sales, down from 83.4% year-over-year.