• Precision Equipment Business
• Imaging Products Business
• Medical Business

Precision Equipment Business

Q. Can you tell us about how new customers are evaluating your semiconductor lithography systems and how you are forecasting the market for those systems in 2016?

A. We were forced to revise our semiconductor lithography system unit sales forecast downwards due to the impact of declining capital expenditure levels in the semiconductor industry and adjustments made to associated plans. However, new customers of our ArF immersion scanners have been evaluating those products in line with our expectations.
At this point in time, we predict the size of the semiconductor lithography system market during the 2016 calendar year to be on par with the 2015 calendar year at approximately 200 units, and for the ArF immersion scanner market to be marginally smaller year-on-year at slightly less than 80 units. In addition to continuing to secure product sales, particularly those of ArF immersion scanners, we will endeavor to secure and improve its earnings by boosting sales of refurbished products and after-purchase servicing.

Q. Can you tell us about your market forecast for FPD lithography systems for 2016?

A. In the FPD lithography system market during the 2016 calendar year, at this point in time, demand for small and medium-sized high-definition panels continues to be healthy and demand for large panels is solid despite a drop in the price of FPDs. As such, our view is that it is also possible for the size of that market to exceed our unit forecast for the 2015 calendar year by approximately 20% to reach approximately 90 units.
Regardless of the outcome, we plan on keeping its eye on future trends in that market going forward.

Imaging Products Business

Q. Can you tell us about the sales results of the first half and the sales targets for the second half of the digital camerasinterchangeable lens type?

A. The downward trend has been continued in the market for digital cameras interchangeable lens type and our sales unit on a year-to-year basis. However, our profitability improved due to the raising sales ratio of middle and high-end class models in the market of Europe and China and the effective use of our expenses. We will continue our policy of securing earnings by implementing activities geared towards increasing sales of middle and high-end class models and promoting greater efficiency largely through cost improvements in the second half of this fiscal year.

Medical Business

Q. Can you tell us about earnings for your Medical Business for the year ending March 2016?

A. Starting with our financial results for this second quarter, we have posted sales and profits from Optos Plc, a U.K.-based retina diagnostic imaging equipment company whose acquisition we completed at the end of May 2015. During the year ending March 2016, we will be posting about three quarters' worth of sales from Optos Plc. It should be noted that those sales will account for almost all of the approximately 15.0 billion yen in full-year net sales for our Medical Business as a whole. While we anticipate that the full-year operating income margin at Optos Plc will be more than 10%, which is in line with our initial target for the year, our Medical Business has incurred considerable segment expenses due to advance investment aimed at medium-term business growth. Consequently, we predict that for this segment as a whole, a full-year operating loss will be approximately 6.0 billion yen, which is also in line with our initial target for the year.