Ⅲ Business Strategies by Company - Topcon...Disruptive Innovation: 2 models World’s No.1: 1 model Building Information Modeling (BIM) is a shared knowledge resource which contributes

©2013 Topcon Corporation Creativity & Growth 19

SIC

POC

ECC

：Enhance new business with strong basis of surveying instruments ：Utilizing GNSS(GPS) as a core technology for rapid expansion in IT Construction & IT Agriculture ：Strengthen Preventive Medicine and Treatment Segment by Enhancing the Strong Competitiveness of Examination/Diagnosis Segment

Ⅲ Business Strategies by Company

©2013 Topcon Corporation Creativity & Growth

Business Strategy

Enhance new business with strong basis of surveying instruments!! - Giant leap by drastic innovation -

20

Construction information modeling

Building information modeling

Disaster prevention by IT

IT (precision) agriculture


Major Strategy

・Launch world first non-contact sensor for evaluating deterioration which realizes quick and highly efficient diagnosis of infrastructure ・Provide solutions based on cloud computing for preventing and mitigating disaster ・Provide emergency alert system based on real-time deformation monitoring

New Business <IT for Disaster Prevention>

Infrastructure building of disaster prevention by IT

2011年度 2012年度 2015年度 FY2011 FY2012 FY2015

150%

21

New products (to be launched by FY2015) World’s No.1: 4 models/ Enhancement of Sales Capability: 2 models

◆Market Size : 20 billion yen

◆Expanding market of structural maintenance and management

◆Increasing demands for constant monitoring for disaster

World’s First !

High precision GNSS sensor

クラウド Cloud

High-accuracy 3D map

Emergency call to escape

Mitigating disaster

Deformation monitoring sensor

Non-Contact sensor

Sales Projection

Market Potential


Major Strategy

・Enter into BIM market with world first specialized product ・Provide new solution for connecting office and job site through IT; Alliance with Autodesk, Inc.

New Business <Building Information Modeling>

Revolution of building industry by IT

2,000% Sales Projection

22

New products (to be launched by FY2015) Disruptive Innovation: 2 models World’s No.1: 1 model Building Information Modeling (BIM) is a shared knowledge resource which contributes to integrated process management of building from plan, design, site work to maintenance and safety control.

◆Market Size : 30 billion yen

◆Advanced countries drive the market to rapid growth, namely 3.5 times by 2020

Market Potential

BIM

Plan

Design

Simulation

Site work

Quality Control

Safety control

Maintenance and

management

Launch specialized product

FY2011 FY2012 FY2015

World’s First !


Major Strategy

・Launch specialized products for construction field first in the world, which enhances productivity drastically ・Provide solutions which shortens the process required for construction survey ・Utilize cloud computing system interoperable with POC, which facilitates optimum data sharing ・Penetrate differentiated products in price and operability over the expanding markets

New Business <Construction Information Modeling>

Revolution of construction industry by IT

2011年度 2012年度 2015年度

150%

23

New products (to be launched by FY2015) Disruptive Innovation: 2 models/ World’s No.1: 2 models/ Enhancement of Sales Capability: 2 models/ Products for Emerging Markets: 1 model

◆Market Size: 30 billion yen

◆IT aided construction becomes globally popular

◆Increasing infrastructure investment on emerging countries which lead the expansion of construction markets accordingly

Plan and design at

office

IT at site

Construction survey at site

Cloud

Launch Specialized products

FY2011 FY2012 FY2015

Construction Information Modeling (CIM) is a shared knowledge resource which contributes to integrated process management of construction work from plan, design, site work to maintenance and safety control.

World’s First !

Sales Projection

Market Potential


New Business <Sensors for IT Agriculture>

Major Strategy

・Launch innovative sensors and IT solutions to agriculture field ・Enter into a new business domain other than wheat product through Topcon’s unique optical sensing technologies, such as a sensor which can cover multi varieties of agriculture products

Applying IT to Agriculture; Smart Agriculture

2011年度 2012年度 2015年度

800%

24

◆Market Scale: 10 billion yen

◆Structural change of agriculture is globally accelerating by applying IT

◆Increasing demand for sensors to determine nutrition of ag products

CropSpec helps users increasing profit while reducing fertilizer cost

World’s No.1

FY2011 FY2012 FY2015

Wheat Tokachi Agricultural experiment station

Ｃｒｏｐ A

Ｃｒｏｐ B

Test field A

Lab B

Ｃｒｏｐ C Lab C

Integrated crop monitoring sensor

CropSpec

Detecting the growth stage of crops by laser sensor

New develop-ment

Sales Projection

Market Potential


Core Business <Survey/Construction/Building>

25

Major Strategy

・Enhance product cost competitiveness by adopting automated manufacturing system first in the industry and changing cost structure ・Facilitate efficient asset management system of surveying instruments first in the world realized by cloud computing, and expand service business ・Launch new products fully equipped with our core technologies ・Enhance sales network in Asia and ME regions

Networking surveying tasks

2011年度 2012年度 2015年度

105%

New products (to be launched by FY2015) World’s First: 1 model/ Reduction of COGS: 2 models/ Products for Emerging Markets: 2 models

optimized

◆Market Scale : 100 billion yen

◆Continued strong demand both in emerging countries and conventional market

◆Escalating cost competition for total stations Efficient management of surveying

instruments through cloud computing Automated manufacturing

Site A

Cloud High-accuracy 3D map

Site B Site C

Site D

FY2011 FY2012 FY2015

Sales Projection

Market Potential

World’s First !

©2013 Topcon Corporation Creativity & Growth 26

New Product Launch

FY2010 - FY2012 (Results)

FY2013 - FY2015 (Plan)

Disruptive Innovation 1 model 4 models

World’s No.1 8 models 5 models

World’s First 4 models 3 models

Reduction of COGS 2 models 2 models

Products for Emerging Markets 2 models 3 models

Enhancement of Sales Capability 1 model 4 models

Total 18 models 21 models


Breakdown of Sales Growth

Operating Income Ratio 13.8%

Operating Income Ratio 19.2%

Smart Infrastructure Company

New business (BIM, CIM, disaster prevention, IT agriculture and others)

Result for FY2012

Mid-term Plan 2015

CIM*/ disaster prevention

*Construction Information Modeling

29.8

39.0

Survey/ construction/ building instruments

Others, including IT agriculture

BIM* *Building Information Modeling

27

Core business (Survey, construction and building)

(Unit: billion yen)

Documents

Ⅲ Business Strategies by Company - Topcon...Disruptive Innovation: 2 models World’s No.1: 1 model Building Information Modeling (BIM) is a shared knowledge resource which contributes