Nikon 2000 Annual Report Download - page 4

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BUSINESS CONDITIONS AND RESULTS
In the fiscal year ended March 31, 2000, the consolidated net sales of the Nikon Group recovered strongly, rising 21.6%
to ¥371.8 billion (US$3,503 million). In consumer products, buoyant sales of digital cameras both in Japan and in
overseas markets helped overcome the effects of stalled consumer spending in Japan and the strong appreciation of the
yen, as demonstrated by a solid growth in recorded revenues. In industrial instruments, a general recovery in the
semiconductor market contributed to a sharp rise in sales of semiconductor-related equipment. In addition, the effects of
the various measures enacted across the Nikon Group to increase earnings began to impact the bottom line. As a result,
a positive operating income of ¥18,434 million (US$174 million) was recorded, and net income amounted to ¥7,770
million (US$73 million).
In line with a change in accounting policy, we decided to amortize unfunded pension and severance payment liabilities totaling
approximately ¥27 billion* (US$ 255 million) over a three-year period, starting in the fiscal year ended March 31, 2001.
BOOSTING EARNINGS POTENTIAL AND OPERATIONAL RESPONSE SPEED
Despite our return to profit during the year, we believe there is still considerable room for improvement in profit
performance. Since October 1999, we have introduced an in-house company system designed to make all the companies
within the Nikon Group individually responsible for sales and profit performance. The new system puts companies on an
equal footing with a clear delegation of responsibilities. To support companies in achieving their sales and profit targets,
we are also making greater use of information technology to reform our business management practices. The
introduction of a new performance evaluation system supports these moves, making the entire process more efficient
and results-oriented.
During the year, we implemented several specific organizational measures to improve the performance of the Nikon
Group. First, we established our surveying instrument business as an independent company. Second, we merged our
ophthalmic lens business in a joint venture with Essilor International S.A. of France.
The full benefits of the implementation of the in-house company system are expected to become evident in fiscal year
2001. From this year, we plan to begin managing the Nikon Group with the various companies forming their own
separate business segments.
TO OUR SHAREHOLDERS
Shoichiro Yoshida, President (left), Shigeo Ono, Chairman (right)
* Approximate amount as of March 31, 2000