Nikon 2006 Annual Report Download - page 9

Business strategy of each company
Precision Equipment Company
Nikon expects the IC stepper and scanner market
to continue growing in value, although not in unit
volume, between the years ending March 31, 2007
and 2009 due to a decrease in i-line steppers and an
increase in high-priced ArF dry and immersion scanners.
Consequently, Nikon aims to secure top position in the
market for state-of-the-art equipments, beginning with
immersion lithography products, while at the same time
developing the tools to enhance productivity of our cus-
tomers, and boosting profi tability.
Meanwhile, the LCD exposure system market is con-
tinuing to become larger as demand for larger LCD TV
grows. There are also concerns about over-capacity in
small to mid-sized LCD panels going forward. Amid such
a business environment, Nikon aims to grab top share in
the market for large LCD exposure systems by leveraging
competitive advantages in the larger panel by exploiting
the multi-lens projection optical system.
Imaging Company
While the digital compact camera market heads towards
maturation, the digital SLR camera market is projected
to continue on a growth track with competition inten-
sifying. Under these circumstances, Nikon intends to
boost profi tability through the provision of highly dis-
tinctive products. In addition, we seek to create new
markets by developing and proposing new products. In
the year ending March 31, 2009, we aim to secure over
40% share of the digital SLR camera market.
Instruments Company
In the bioscience fi eld, Nikon aims to expand its solu-
tions business in observation of live cells which attracts
the attention of the research market. In the industrial
instruments fi eld, with a particular emphasis on semi-
conductor and electronic businesses as well as non-con-
tact vision based measuring systems, we aim to embark
on broader businesses including in the automotive
industry. We will also try to shorten product develop-
ment lead-time by 30%.
New Businesses
Nikon is striving to cultivate new businesses in the
realms of glass materials, solid-state lasers, inspec-
tion/fabrication tools for 3D-IC, CMPs and optical
components by leveraging from precision and optical
technologies to image processing, material and software
technologies accumulated throughout Nikon Group.
N
Precision Equipment
Developing next generation
stepper and scanner / Improving
productivity
Imaging
Concentrating on 2nd
generation DSC development
Instruments
Enhancing bioscience related
business
New Business
Strengthening new businesses
and the development of
elemental technologies
CONSOLIDATED FINANCIAL TARGET
OF EACH COMPANY
Consolidated operating income ratio 2009: 10%
(millions of yen)
PLAN OF CAPITAL INVESTMENT AND R&D
(Total amount of 3 years)
Expanding investment for future growth
CAPITAL
INVESTMENT
Total amount:
100 billion yen
20% increase
FUND FOR R&D
Total amount:
165 billion yen
60% increase
Over 7% of net
sales is planned
07
06 09 06 09
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
242,318
415,686
53,280
19,660
310,000
480,000
73,000
37,000
26,375
34,369
4,085
38,000
44,000
8,500
Precision
Equipment
Imaging
Instruments
Other
Net Sales Operating Income
730,944 900,000 66,587 90,000
Note: The above segment sales are based on net sales for outside customers by industry segment.
Years ended and ending March 31