Nikon 2008 Annual Report Download - page 28

26 Nikon Annual Report 2008
operating income and net income on a consolidated
basis. Net sales increased ¥132,979 million, up 16.2%
from the previous year to ¥955,792 million, operating
income rose ¥33,162 million, up 32.5% to ¥135,169 mil-
lion, and net income gained ¥20,659 million, up 37.7% to
¥75,484 million.
Performance by Business Segment
In Precision Equipment Business, while sales of LCD step-
pers and scanners dropped by half in reaction to excep-
tional sales the previous year, increased sales of high-end
IC scanners covered most of that decline. Overall Precision
Equipment Business sales were down only slightly. Nikon
also worked to reduce costs for both the LCD and IC busi-
nesses by adopting simplified design and common plat-
forms, and shortening manufacturing periods. As a result,
Precision Equipment Business segment net sales dropped
0.4% year on year to ¥290,814 million, while operating
income declined 12.1% to ¥43,348 million.
In Imaging Products Business, the digital camera mar-
ket continued to expand. Nikon gained the top share of the
Japanese domestic market for digital SLR cameras in terms
of the number of units sold with the introduction of the
D60 and the high-end D3 and D300 models, rounding out
our product lineup. The Company also actively introduced
new compact digital cameras, providing the market with
models that accurately grasp customer needs. As a result,
Imaging Products Business segment net sales rose 30.6%
year on year to ¥586,147 million, while operating income
shot up 83.8% to ¥83,974 million.
In Instruments Business, in the bioscience business
Nikon introduced system products and strove to expand
sales of cell culture observation equipment and other
devices. In the industrial instruments business, Nikon
focused on sales of the NEXIV series of CNC video measur-
ing systems and the AMI-3400 automatic macro inspec-
tion system. Nevertheless, as a result of weak sales in
the Japanese market during the second half of the fiscal
year, Instruments Business segment net sales slipped 0.4%
year on year to ¥59,043 million, while operating income
dropped 20.3% to ¥4,081 million.
In the Other Business segment, sales rose in the custom-
ized products, sport optics products, and glass businesses.
Nikon reached a decision to withdraw from the ophthal-
mic frames and sunglasses business as of March 31, 2008
from the perspective of optimizing overall group manage-
ment. As a result of this decision, Other Business segment
net sales declined 13.3% year on year to ¥19,788 million,
while operating income rose 73.0% to ¥3,636 million.
Performance by Region
In Japan, sales of ArF immersion scanners for advanced
fields expanded, and sales of digital SLR cameras and
compact digital cameras continued to rise. Sales of inter-
changeable lenses increased as well along with favorable
sales of digital SLR camera bodies. Operating income also
rose as a result of efforts to strengthen cost competi-
tiveness through manufacturing innovations and other
measures. Consequently, net sales in Japan rose 12.6%
year on year to ¥379,990 million, with operating income of
¥104,038 million.
In North America, revenues increased with strong con-
tributions from growing sales of digital SLR cameras and
interchangeable lenses. As a result, net sales in North
America rose 11.3% year on year to ¥240,591 million, with
operating income of ¥12,318 million.
In Europe, sales of digital SLR cameras and interchange-
able lenses increased firmly, while sales of compact digi-
tal cameras were also favorable. As a result, net sales in
Europe rose 20.8% year on year to ¥214,215 million, with
operating income of ¥7,598 million.
In Asia and Oceania, sales grew driven by digital SLR
cameras in China and other regions. And Nikon Australia
Pty Ltd. has been added as a Nikon consolidated affiliate.
As a result, net sales in Asia and Oceania rose 31.7% year
on year to ¥120,996 million, with operating income of
¥15,801 million.
Financial Position
As of March 31, 2008, on a consolidated basis, Nikon’s total
assets were ¥820,622 million, up ¥71,683 million from the
end of the previous fiscal year. This was mostly the result
of a ¥72,920 million rise in current assets, with increases
in cash and cash equivalents, notes and accounts
receivable—trade, and inventories.
Total liabilities reached ¥427,496 million, rising ¥27,002
million year on year. While the balance of short-term bor-
rowings and current portion of long-term debt declined,
notes and accounts payable—trade increased.
Equity rose by ¥44,681 million from the end of the previ-
ous fiscal year to ¥393,126 million. This mostly reflected
the increase in retained earnings from the posting of net
income for the fiscal year .
Net Sales by Industry Segment
Years ended March 31, 2008 and 2007
Thousands of
Millions of Yen, % U.S. Dollars
2008 2007 2008
Precision Equipment ¥ 290,814 ¥ 291,913 $ 2,902,629
Share of net sales 30.4% 35.5%
Imaging Products 586,147 448,825 5,850,350
Share of net sales 61.3 54.5
Instruments 59,043 59,252 589,307
Share of net sales 6.2 7.2
Other 19,788 22,823 197,504
Share of net sales 2.1 2.8
Total ¥ 955,792 ¥ 822,813 $ 9,539,790
Balance Sheet Analysis
March 31, 2008 and 2007
% of Total Assets
2008 2007
Total assets 100.0% 100.0%
Total current assets 72.6 69.9
Inventories 32.3 32.9
Property, plant and equipment 14.3 15.5
Investments and other assets 13.1 14.6
Total current liabilities 43.0 41.3
Short-term borrowings 1.0 2.1
Long-term debt, less current portion 7.3 9.1
Total equity 47.9 46.5