Nikon 2006 Annual Report Download - page 7

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Nikon Medium Term Management Plan
NEW DIRECTION:
IN PURSUIT OF A STRONGER NIKON
Background
The business environment surrounding Nikon is changing at a
fast rate. There has been further shrinkage of semiconductor
devices and the market has expanded through diverse prod-
ucts that use semiconductors. Meanwhile, LCD panels continue
to get larger. The digital SLR camera market keeps growing
and competition intensifying, while there is continued advance-
ment in digital networks. Expansion of the bioscience market is
another key characteristic of the modern era.
To keep pace, Nikon has formulated a three-year medium
term management plan that will run until the end of the
year ending March 31, 2009. Building on the improvement
in business performance in the years ended March 31, 2005
and 2006, the plan aims to further accelerate expansion
of profi t-earning capacity and to create a strong business
structure that can generate sustainable growth.
Based on the plan, consolidated targets for the year end-
ing March 31, 2009 include net sales of ¥900 billion, oper-
ating income of ¥90 billion, an operating income ratio to
net sales of 10% and a debt-equity ratio under 30%.
CONSOLIDATED FINANCIAL TARGET
Consolidated operating income ratio 2009 : 10%
(millions of yen)
Net Sales
Operating Income 66,587
730,944
90,000
900,000
2006 2009
D/E Ratio 74% Under 30%
05
Years ended and ending March 31