Nikon 2001 Annual Report Download - page 4

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page 2
*Beginning with the year ended March 2001, financial results are reported in accordance with the Nikon Group’s in-house company
system. Previously, just two divisions, Consumer Products and Industrial Instruments, were the basis for reporting. There are now
four business segments within the Nikon Group: Precision Equipment, Imaging Products, Instruments, and Other.
(Right)
Shoichiro Yoshida
Chairman of the Board and
Chief Executive Officer
(Left)
Teruo Shimamura
President, Member of the Board and
Chief Operating Officer
Business Results Overview
The fiscal year ended March 31, 2001 produced very strong results for the
Nikon Group, with sales rising 30.2% year-on-year to ¥484.0 billion. Our
precision equipment and instruments businesses experienced increased demand due to expansion in the
markets for semiconductor-related devices. These divisions posted growth of 36.3% and 15.9%, with sales
rising to ¥234.8 billion and ¥59.0 billion, respectively. Our imaging products business benefited from a
continued expansion in the digital camera market, both in Japan and overseas. With an array of successful
new product introductions, this division generated sales growth of 31.2% over the previous year, recording
sales of ¥180.1 billion.*
Profits also grew strongly during the year. Greater economies of scale from higher production levels
combined with a Group-wide focus on raising profitability to produce growth in operating income of 233.2%, to
¥61.4 billion. Net income soared 169.1% to ¥20.9 billion. Both figures marked record highs.
We decided to accelerate the amortization of transitional obligation that arose as a result of a new
accounting standard for employees’ retirement benefits. The sum, determined as of the beginning of year, is
being amortized over two years instead of the initially planned three-year period.
Planning for Stable Growth in the 21st Century
Despite the strong performance of the year, future growth prospects remain unclear. The US economy
continues to stagnate, while European and Asian economies seem likely to produce at best sluggish growth.
Within Japan, there are no indications that a robust economic recovery will materialize soon. In addition, the
relatively high exposure of the Nikon Group to the highly cyclical semiconductor sector means that cutbacks
in capital investment by semiconductor manufacturers constitute a clear sign of danger. We are therefore
cautious about the road ahead.
How can we plan for strong, stable earnings growth in this new century? We must proactively strengthen
our organization, become ever more nimble in response to market changes, and based on our core
technical base, develop new technologies and undertake business initiatives that meet the needs of the
age. Inaction is not an option. Below, we outline some of the moves the Nikon Group has been taking and
is planning to take to prepare for the challenges ahead.
In-house company system firmly in place
Since October 1999, the Nikon Group has adopted an in-house company system that delegates
responsibility for sales and earnings growth to specific business units. No member of the Group is exempt
from this fundamental focus on bottom-line performance. This fiscal year saw progress towards the full
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