Nikon (7731) investor relations material

Executive summary

• Revenue for the nine months ended December 31, 2025, decreased by 5.6% year-over-year to ¥483.9B, with a significant operating loss of ¥103.6B due to large impairment losses in Digital Manufacturing.

• Loss attributable to owners of parent was ¥87.2B, compared to a profit of ¥6.3B in the same period last year.

• Management recognized responsibility for the net loss and dividend cut, with top executives foregoing bonuses and performance-based compensation.

• The medium-term plan's profitability targets will not be met, but revenue targets were achieved over multiple years.

• Comprehensive income turned negative at ¥-45.4B, down from ¥21.3B a year earlier.

Financial highlights

• Q1–Q3 revenue: ¥483.9B, down ¥28.7B (-5.6%) YoY; Q3 revenue: ¥171.0B, down ¥8.9B (-4.9%) YoY.

• Q1–Q3 operating profit: -¥103.6B (down ¥111.7B YoY); Q3 operating profit: -¥98.8B (down ¥101.1B YoY).

• Q1–Q3 net loss: -¥87.2B (down ¥93.4B YoY); Q3 net loss: -¥92.5B (down ¥95.8B YoY).

• Major impairment loss of ¥90.6B recognized in Digital Manufacturing.

• Free cash flow for Q1–Q3: -¥42.8B; cash and cash equivalents decreased by ¥5.7B to ¥157.9B.

Outlook and guidance

• Full-year revenue forecast revised down to ¥675.0B (down ¥5.0B from previous forecast).

• Full-year operating loss forecast at -¥100.0B (down ¥114.0B from previous forecast).

• Net loss forecast at -¥85.0B; annual dividend revised down to ¥40.

• Downward revisions across Imaging, Precision Equipment, Healthcare, and Digital Manufacturing segments.

• Basic earnings per share for the year ending March 31, 2026, forecasted at ¥-258.29.