[Business Outline]

Through its activities of the manufacturing and the sales of optical products, TOPCON has developed the optical and digital technologies since its establishment.

Positioning Business is one of our core businesses developing based on the optical technologies that have been cultivated since its establishment, as well as electronics and laser technologies. TOPCON is one of three top manufacturers of surveying instruments in the world. Recently, TOPCON is expanding its business domain using technologies integrating its backbone technologies with machine control, image analysis and GPS technologies for high-accuracy 3D position information.

Eye Care Business can be divided into Ophthalmic Products and Optometric Products. TOPCON is known as one of the leading companies in the world which produces ophthalmic products. General demand for eye care is increasing further under the progress of the information society and the aging society. TOPCON is also focusing on the preventive healthcare field including promotions of system solutions, development of advanced ophthalmic instruments and screening tests for diabetes.

Description of business

Business segment	Product category	Major products
Positioning Business	*Survey *Construction *3D Measurement *Mapping & GIS *Precision Agriculture *Mobile Control	GNSS Receiver(GPS/GLONASS/Galileo), GPS+Reference Station System, GIS, MILLIMETER GPS, 3D Scanner, Mobile Contorol System, Precision Agriculture, Asset Management System, Machine Control System, Total Station, Field Controller, Level, Theodolite, Rotating Laser, Pipe Laser
Eye Care Business	*Ophthalmic Diagnostic Instruments *Ophthalmic Treatment Instruments *Ophthalmic Systems *Refraction Instruments *Lens Measuring Instruments	Retinal Cameras, 3D OCT, Tonometers, Slit Lamps, Operation Microscope, PASCAL Photocoagulator, Laser Photocoagulator, Specular Microscope, Digital Imaging System IMAGEnet, Lens Edger, Computerized Vision Tester, Bino Vision Analyzer, Auto Refractometer,Auto kerato-Refractometer, Lensmeter, Trial Lens Unit

[Strengths of TOPCON]

1. Optical technology covering a wide spectrum of wavelength

   Only limited companies in the world can possess this technology. Our unique technology enables us to provide a broad range of solution to the customers.

2. High-global business: Overseas sales accounted for approx 72% of net sales of TOPCON
   (Fiscal 2010 consolidated basis)

   Approx 72% of net sales of TOPCON in fiscal 2010 was made overseas. This figure indicates that TOPCON is truly global in its business activities, with supported a number of bases throughout the world.

3. No.1 products in the worldwide market

   In Positioning Business, Electronic Total Station which has maintained the largest share in the worldwide market because of its functionality, performance, cost performance and variety.
   In Eye Care Business, 3D optical coherence tomography integrating OCT and non-mydriatic retinal cameras, which is the first product commercialized in the world.
   Others, Spectroradiometer for ultralow luminance, an optical measurement device essential for image evaluation including colors and brightness of displays.

[Key Strategies]

Realizing profitable and sustainable growth to be a truly global and a truly excellent company

With an increasing global business, more than 70% of the Topcon Group’s sales are outside Japan, but the external environment of recent years, including foreign exchange rates, continues to have a great impact on our performance. Consequently, we have been advancing the reform project since the previous fiscal year. In fiscal 2011, we have formulated the Mid-Term Business Plan 2013 and will undertake the reform project under the Mid-Term Action Plan, which indicates the direction of the Business Plan, clearly demonstrating our intent to establish a robust corporate structure. From now on, under the renewed management structure, we will focus our efforts on quickly establishing a stable revenue base and sound financial position following the slogan of “Reform & Enhancement” to create a stronger corporate structure that is resilient to the external business environment.

One of the key strategies in our reform project specified in the Action Plan is to reduce overall costs. This strategy includes reducing the cost of goods sold by enhancing VA/CD (value analysis/cost down) efforts and strengthening overseas procurement, optimizing the workforce by adjusting headcount on a global basis and consolidating/integrating production bases, and promoting business process reforms by introducing an ERP (enterprise resource planning) system. Through such steps, we aim to save a total of ¥10 billion by reducing the cost of goods sold and fixed costs.The reduction of cost of goods sold and fixed costs is the
key strategy of the ongoing reform project, and by accelerating it we will generate profits and healthy cash flows that will keep us one step ahead of our competitors. We will also advance reform of our corporate culture in accordance with the TOPCON WAY established in April 2011. In these ways, we will achieve profitable and sustainable growth.

We are also continuing our tireless pursuit of technology with renewed efforts to revitalize the inherent DNA of “Technology-driven Topcon,” and to further reinforce the TM-1 (Time to Market No. 1) activities. In addition, we are working to raise our level of monozukuri (superb manufacturing)—the most fundamental element in the manufacturing industry—to the highest level in the world to achieve our objective of becoming a leading company that is truly global and a truly excellent company with worldwide competitive strength.