Nikon 2016 Annual Report Download - page 18
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Please find page 18 of the 2016 Nikon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Progress of the Medium-Term Management Plan
The Medium-Term Management Plan that was announced
in 2014 set out the measures by which we were to make
our vision of the Nikon Group tangible and bring that
Nikon Group to fruition. In 2015, we announced our
Medium-Term Management Plan Update, for which we
had reviewed and revised management’s original numeri-
cal targets on the basis of the results and business
environment forecasts then current. The update is regarded
as a three-year xed plan. The aim was to position 2015
through to the end of the scal year ended March 31,
2016, as the period for maintaining stable earnings by
streamlining existing businesses and for investing in
growth businesses, and then to focus on regrowth from
the scal year ending March 31, 2017, onward.
Next 100 – Transform to Grow
Transforming into a corporate entity that grows by means of its six-business portfolio
By maintaining the stable earnings of the FPD Lithography Business
and the Imaging Products Business as well as promoting the stream-
lining of existing businesses by returning the Semiconductor
Lithography Business to prot and positioning the Microscope
Solutions, Industrial Metrology, and Medical businesses as growth
businesses, we are rebuilding our six-business portfolio and trans-
forming into a corporate entity that will grow sustainably.
Strengthen business fundamentals Growth drivers
Growth potential
Microscope Solutions Business / Industrial
Metrology Business
• Switch emphasis mainly from hardware to solutions
• Aggressively pursue M&As and alliances
Medical
Business
FPD Lithography
Business
Maintain
protability
Semiconductor
Lithography
Business
Solidify
protability
Imaging Products
Business
Improve
protability
New growth
drivers
Microscope
Solutions
Business
Industrial
Metrology
Business
Concentrated shift of
management resources
from existing businesses
Medical Business
• Redirect internal and external management
resources to the Medical Business
• Aggressively pursue M&As and alliances
Basic Policy of the Medium-Term Management Plan Update
Maintaining stable earnings from existing businesses
Further streamlining through cost reduction
Investment to return to growth track from scal year ending
March 31, 2017, onward
Investing in growth businesses
Continue with investment for growth strategy
Four Programs to Achieve Transformation
M&A Program
• Spend ¥200 billion in M&A funds on the
Medical and Instruments businesses
• Launch Corporate Venture Capital (CVC)
on the scale of ¥30 billion for the Medical
Business and encourage Open Innovation
Human Resources Program
• Enable the interdivisional ow of personnel
• Hire experienced experts
R&D Program
• Of a ¥220 billion R&D budget (March
2015 scal year to March 2017 scal
year), invest ¥50 billion in the Medical
Business and new business domains
Cost Reduction Program
• Reduce costs in design and manufactur-
ing processes
• Reduce overhead at headquarters and in
business units
• Fundamentally review production regime to
reect the rebuilding of the business portfolio
Priority measures: Foster new businesses and strengthen existing businesses
Protability
16 NIKON REPORT 2016