Q: Please explain the actual amount of US tariff refunds received and the outlook going forward.
A: Tariff refunds received in the first half totaled ¥6.4 billion on a company-wide basis. Of this amount, approximately 60% was attributable to the Imaging Products Business, just under 30% to the Healthcare Business, and the remainder to the Industry Business and the Digital Manufacturing Business. By quarter, refunds amounted to ¥4.0 billion in the first quarter and ¥2.4 billion in the second quarter. For the third quarter and beyond, more than ¥1.0 billion remains unrefunded. However, because the timing of the refunds is uncertain, this amount has not been incorporated into the full-year forecast.
Q: Please explain the impact of rising memory prices on the Imaging Products Business and the impact of US tariff exemptions for Eye Care products on the Healthcare Business.
A: In the Imaging Products Business, we expect rising memory prices to have a negative impact on full-year operating profit in the high single-digit billions of yen. This is unchanged from our previous forecast and remains broadly within our assumptions. In terms of volume, we expect to secure substantially all of the required procurement volume, including the volume needed for the next fiscal year. However, the outlook for prices remains uncertain.
Q: Why was the operating profit forecast revised downward even though unit sales in the second half are expected to increase year-on-year?
A: Amid a softening market environment, particularly in China, we revised downward both our overall market size projection and Nikon’s unit sales forecast for the second half. Nevertheless, we expect unit sales in the second half to increase year on year as we seek to attract a broad range of users through the launch of new products, including the Z5IIC mirrorless camera. On the profit side, we revised downward the operating profit forecast for the second half, mainly reflecting the above revision to the unit sales forecast.