~Contributing to Eye Health~

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1 ~Contributing to Eye Health~ 26

2 Eye Care Market Trends FY2007 Retinal Camera market forecasts by eye disease FY 2010 Auto Keratorefractometer Retina 160 Refraction Retina 200 Refraction Auto Lens Edger Cataract Glaucoma IMAGEnet Glaucoma Cataract 3D OCT Tonometer * market forecasts are based on Topcon s s research 27 Slit Lamp Operation Microscope

3 Eye Care Eye Care Business Sales by Segment Refraction Retina Refraction 39.8 Cataract Glaucoma Retina 43.0 Refraction Cataract Glaucoma Retina 53.0 Glaucoma Cataract Topcon Will Focus On Retina 64.8 FY2007 TOPCON 24% TOPCON 27% 90.0 FY2008 FY2010 Refraction :Auto Kerato-refractometers, Lens Edgers, etc. Retina :IMAGEnet, Retinal Cameras, 3D OCT, etc. Cataract :Operation Microscope, Slit Lamps, etc. Glaucoma :Tonometers, 3D OCT, etc. FY2007 FY

4 Enhancement of Eye Care Business Foundations 3D OCT Increase sales growth with 3D OCT-1000 MARKⅡ Provide a Global Normative Database Introduce OCT technology to the physical check-up market Develop an OCT for regenerative medicine and cytoscreening IT Solution Development and installation of new version of ophthalmology diagnosis data component for electronic record filing systems Expanding the market of ophthalmology informatics that will cover the needs from major hospitals to private doctors offices Streamline the data management of various diagnostic instruments Entry into Treatment Arena Entry into vitreoretinal surgery equipment. Develop strategic alliances with surgical equipment manufacturers Eye Care 29

5 Eye Care Ophthalmology Diagnosis Field * New 3DOCT Released With the Increase of the 3 Major Causes of Blindness in Developed Countries. Demand for 3D OCT Will Grow High-speed scanning Age-related Macular Diabetic Degeneration Retinopathy Glaucoma Ophthalmic Diagnosis is improved through a normal eye database Normal Eye Abnormal Eye NEW 3D OCT-1000 MARK Ⅱ 30

6 Eye Care Physical Check-up/Preventive Medicine (World-wide) The healthcare market is growing with increased interest in the prevention of blindness caused by diabetic retinopathy, glaucoma, and macular degeneration yen (FY) World market for non-mydriatic fundus cameras * Estimates Including accessories and software 31

7 Physical Check-up/Preventive Medicine (Domestic Market) Timely Launch of products into the growing healthcare market Eye Care April 2008: Start of a new health system Mandatory physical check-up for people over 40 Increase purchases of digital equipment due to the discontinuation of Polaroid film Estimated growth of our domestic physical check-up products Mandatory Physical Check-up Discontinued Market for domestic physical check-up NEW Diagnosis OCT NEW Retinal Camera 720 yen 730 yen 760 yen 870 yen 890 yen 3.8 times Growth from FY 2005 FY2005 FY2006 FY2007 FY2008 FY2009 * Source: Yanoken

8 Eye Care Physical Check-up/Preventive Medicine Diagnosis accuracy is substantially improved with ocular fundus image + OCT! Normal Eye Eye That Appears Normal on the The Fundus Photo Clearly Shows a Disorder on the OCT Image Combining ocular fundus and OCT images enhance the detection of eye diseases! 33

9 Eye Care Penetration into the Regeneration Medicine and Cytoscreening Field Acceleration of the development of super high resolution OCT (FF-OCT) Stevens-Johnson syndrome (post PKP) Before procedure Cornea Retina Hand Motion Vision 1 year after procedure Domestic Domestic market market for for this this new new field field Estimated Estimated yen yen * FY2010 Vision 0.9 Pig retina (below)/ corona (above) 34 Regeneration Medicine/Cytoscreening Field *Topcon s estimate

10 Enhance Informatics Business (Electronic Record Network System for Ophthalmology) Eye Care Increase sales through the integration of IMAGEnet and EMR EMR domestic market size ( yen) By Seed Planning, Inc. Enhance partnership with large hospitals Coalition with the Singapore National Eye Centre IMAGE net (Image filing system) Hospital General System Database Internet DICOM Gateway DICOM Clinic ANKA Web Base Network System Clinic (Digital Imaging and Communications in Medicine ) Communication specification for medical image; popular for CTs and MRIs EMR (Electronic Medical Records) Handwriting electronic. Increase demand for IT business solutions will be world-wide Regional hospital 35

11 Entry into Surgical Treatment Equipment Expand the sales growth through treatment instrumentation Eye Care Ophthalmic Operation Microscopes Full Lineup NEW OMS-90 OMS-800 OMS-710 Ophthalmic Laser Photocoagulator LC-300G 36 NEW

12 FY2008 Mid-term Business Plan for Eye Care Business Unit FY2008 FY 2009 Eye Care FY 2010 Net Sales 43.0 B 48.0 B 53.0 B Operating Income Operating Income Ratio 6.0 B Substantial growth of 3D OCT sales and penetration into the health check-up market 7.1B 14% 15% 17% B

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