18
by Region 1H 2H Overview of 1H Regional and Market Trends for FY2009 America Europe Japan Emerging Countries USA: Some signs of of recovery in in the end of of 1H Europe: Still not showing a sign of of bottoming out Emerging Co: Keeps growing while impacted by by recession Forecast for 2H Expecting for global economic recovery Japan: Possible budget cut on on public investment by Market Construction Precision Agriculture Surveying GIS 3D Measurement 1H 2H Overview of 1H Increasing demands on on Machine Control and Precision Ag Surveying and GIS mainly expanding in in emerging countries Forecast for 2H Expecting infrastructure investments as as stimulus program Growing demands on on Information Technologies and GIS Concerns over delaying recovery in in some counties/regions 19
Business Strategies Accelerating & Braking Accelerating Basic Segment --- Reinforce Total Station & GPS Growing Segment --- Strengthen Precision Ag, Measurement and Telematics; Aim to increase proportion of sales 15%+ Product Development --- Released 14 new products in 1H and completed fulfillment of product portfolio Market development in China, Asia and Middle-east east (250% of FY07) Braking Produce synergy effects of Business Integration with Sokkia --- 2 years ahead of original schedule Cutback Reduced 800 personnel / Expenses 4 billion yen (from 1H FY08 to 1H FY09) 20
Reinforce Basic Segments Surveying ~Total Station & GPS~ GPS: Launch of TM-1 1 Products GRS-1 1 by Topcon (Handheld GNSS receiver) GPS Sales in Asia (unit) GRX1 by Sokkia (Compact all-in-one GNSS receiver) Expand sales of GPS products in Asian markets Total Station: New products to be released Total Station Sales (unit) Made in China Made in Japan 21
Approach in the Growing Business Precision Agriculture Fulfilled Product Portfolio Planting Growing Sales for Precision Agriculture 240% Planning Harvesting (Estimate) Increase OEM Accounts AGCO and 40+ other companies Global development and support locations, covering 24 hours Italy Moscow Tokyo California Development Center Test Site Adelaide 22
Approach in the Growing Business Measurement Mobile Measurement: Lineup of IP-S2 Sales for Measurement market Price / Accuracy High Accuracy Mobile Survey System to make maps 450% Mobile Mapping System to add info on maps 3D Laser Scanner Market Size Industrial Measurement 3D Laser Scanner AUTO 3D Station 23
Approach in the Growing Business Telematics GlobalTRACS by Qualcomm Acquired user base in construction field (August 09) Increase OEM Accounts Enhance product functions Sales for Telematics NEW Asset Management 2008 2009 2010 2011 (plan) (plan) Central Control Room Central Control Room Site Site 24 Fleet Fleet
Priority Actions Develop New Product and New Business 1H FY2009 2H FY2009 Total Station Imaging total station (IS-2) TM-1 Standardize platforms GPS Precision Agriculture Measurement Telematics Compact hand held receiver (GRS-1) Compact all-in-one receiver (GRX1) Auto steering (AES-25) TM-1 Mobile mapping (IP-S2) High accurate total station (NET-05) TM-1 Acquired part of Qualcomm s business TM-1 Standardize platforms Entry-level products at reasonable prices Products for Chinese market Products for OEM sales TM-1 25
Priority Actions Market Development in Asia ~Shifting axis~ Geographical Proportion of Sales Sales in China Asia 28% Others 8% North America Europe 64% Others 11% FY2007 Net Sales 50.9 billion yen FY2009 Estimated Net Sales 50.7 billion yen North America Europe Asia 45% 44% Sales in Asia and Middle East Sales in Japan Asia includes Japan, China and Oceania. Others includes Latin America, Russia, Middle East and Africa. 26
Priority Actions Business Integration with Sokkia Producing synergy effects of Business Integration 2 years ahead of original schedule! Integrate organizations 見 Reduce headcount Reorganize facilities/offices (Manufacturing and sales) Reduce headcount and running costs Develop new products GRX1, GRX1, the first collaboratively developed product Synergy effect plan Plan Actual Amount to improve Original Revised Plan Original Plan 直し後計画Revised Plan Original Plan 見直し後計画FY08 FY09 FY10 FY11 Revised Plan FY08 FY09 FY10 FY11 27