Nikon 2012 Annual Report Download - page 26

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NIKON CORPORATION ANNUAL REPORT 2012
Business Environment
The production goods market was favorable during the
consolidated fiscal year ended March 31, 2012, although
supplies of imaging products declined due to flooding in
Thailand, while market conditions sagged in the industrial
instruments field. Under such conditions, the supply chain
rebounded quickly and strongly from the disruptions
caused by the Great East Japan Earthquake, and the
product supply line recovered within the first half of the
subject fiscal year. Operations at Nikon (Thailand) Co., Ltd.
were suspended in October 2011 as a result of the flooding,
but resumed in January 2012, and including alternative
production at Thai partner factories, production volume
was back to normal by the end of March.
In terms of the business environment for the Nikon
Group’s mainstay businesses, for the Precision Equipment
Business segment, in the IC-related market capital
investment by manufacturers was strong, while in the
LCD-related market demand grew for smartphones and
tablet computers. For the Imaging Products Business
segment, all markets except Japan saw steady growth
in interchangeable lens-type digital cameras, while the
market for compact digital cameras shrank in all regions
except Asia. For the Instruments Business segment, in the
bioscience market the deferment in implementation of and
reductions in public budgets made for difficult business
conditions, while the industrial instruments market
continued flat from the previous fiscal year.
Financial Performance
The Nikon Group contended with disaster response efforts
during the subject fiscal year, including revival and
bolstering of the supply chain in the wake of Japan’s massive
earthquake in the first half of the period, and the recovery
and prompt resumption of operations following the flooding
in Thailand in the second half. We also worked to shorten
production lead times, cut costs, and realign our risk
management structure, while also introducing products in a
timely manner in line with the market recovery both in Japan
and overseas. As a result, consolidated net sales for the
subject fiscal year increased ¥31,139 million (3.5%) from the
previous fiscal year to ¥918,652 million. Operating income
rose ¥26,028 million (48.2%) to ¥80,081 million, with net
income up ¥31,993 million (117.1%) to ¥59,306 million. Basic
net income per share was ¥149.57 (compared with ¥68.90 in
the previous fiscal year).
Income (Loss) Analysis
Years ended March 31, 2011 and 2012 % of Net Sales
2011 2012
Net sales 100.0% 100.0%
Cost of sales (64.8) (61.7)
Gross profit 35.2 38.3
SG&A expenses (29.1) (29.6)
Operating income 6.1 8.7
Net interest expense and dividend income 0.0 0.0
Net other expenses (0.9) 0.7
Income before income taxes 5.2 9.4
Income taxes (2.1) (2.9)
Net income attributable to minority interests 3.1 6.5
Net income 3.1 6.5
Note: Expenses, losses and subtractive amounts are in parentheses.
Performance by Business Segment
Business Segment Results
In the Precision Equipment Business segment, capital
investment remained strong among IC and LCD
manufacturers. In IC steppers and scanners, profitability
rose sharply as a result of a greater sales ratio for the
highly competitive NSR-S620D ArF immersion scanner.
Shipments of the newest model of ArF immersion scanner,
the NSR-S621D, began in January 2012. In LCD steppers
and scanners, although sales declined for 7th-generation
products for large-screen TVs, sales rose for small to
medium-sized high-definition 4th-, 5th- and 6th-generation
products ideal for mass production of smartphones and
tablets. We also began shipments of such products as the
FX-66S, which incorporates a multi-lens projection system
to enhance productivity and resolution. Further, we took
steps to improve profitability by shortening production times
FINANCIAL SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
Nikon Corporation and Consolidated Subsidiaries
For the year ended March 31, 2012
200
2008 2010
1,000,000
800,000
600,000
400,000
200,000
0
2009 2011 2012
(Millions of yen)
2008 2010
160,000
120,000
80,000
40,000
0
-40,000
2009 2011 2012
(Millions of yen)
2008 2010
80,000
60,000
40,000
20,000
0
-20,000
2009 2011 2012
(Millions of yen)
2008 2010
150
100
50
0
-50
2009 2011 2012
(Yen)
Net Sales
Years ended March 31
Operating Income (Loss)
Years ended March 31
Net Income (Loss)
Years ended March 31
Basic Net Income (Loss)
per Share
Years ended March 31