Nikon 2009 Annual Report Download - page 27

Five-Year Summary
Nikon Corporation and Consolidated Subsidiaries
Years ended March 31
Thousand of
Millions of Yen U.S. Dollars
2009 2008 2007 2006 2005 2009
For the year
Net sales ¥ 879,719 ¥ 955,792 ¥ 822,813 ¥ 730,944 ¥ 638,468 $ 8,955,707
Cost of sales 561,642 551,551 494,663 468,944 429,143 5,717,626
SG&A expenses 269,892 269,072 226,143 195,413 178,780 2 , 747, 551
Operating income 48,185 135,169 102,007 66,587 30,545 490,530
Income before income taxes and minority interests 39,180 116,704 87,813 40,925 33,443 398,861
Net income 28,056 75,484 54,825 28,945 24,141 285,615
Per share of common stock (Yen and U.S. dollars):
Basic net income ¥ 70.76 ¥ 189.00 ¥ 146.36 ¥ 78.16 ¥ 65.19 $ 0.72
Diluted net income 67.91 181.23 131.42 69.33 57.84 0.69
Cash dividends applicable to the year 18.00 25.00 18.00 10.00 8.00 0.18
Capital expenditures ¥ 43,467 ¥ 39,829 ¥ 30,432 ¥ 25,817 ¥ 22,459 $ 442,506
Depreciation and amortization 32,910 25,678 22,625 20,760 19,705 335,030
R&D costs 61,489 58,373 47,218 37,139 33,561 625,971
At year-end
Total assets ¥ 749,805 ¥ 820,622 ¥ 748,939 ¥ 690,920 ¥ 633,426 $ 7,633,159
Total equity 379,087 393,126 348,445 243,122 196,030 3,859,177
Notes: 1. Per share of common stock is computed based on the weighted average number of shares outstanding during the year.
2. U.S. dollar figures are translated for reference only at ¥98.23 to U.S. $1.00, the exchange rate at March 31, 2009.
Management’s Discussion and Analysis
Nikon Corporation and Consolidated Subsidiaries
For the year ended March 31, 2009
Business Environment
During the consolidated fiscal year ended March 31, 2009, the
global economy held firm overall in the first half, supported mostly
by growth in Asian economies despite a continued slowdown in
Western nations from the very beginning of the period. In the
second half, however, financial anxiety spread, sparked by the
collapse of a major U.S. financial institution, leading to a global
consumption slump, investment freeze, and plunge in stock prices.
Reviewing the business segments of the Nikon Group under
these conditions, the semiconductor-related market contracted
sharply with the large reduction in capital expenditure from the
drop in global demand for semiconductor devices. In the liquid
crystal panel-related business, while investment was lively in the
first half the market conditions worsened dramatically thereafter
because of the abrupt slowdown in demand for large-scale panels
for flat-screen TVs since last summer. The digital camera market
environment also deteriorated suddenly from the second half due to
stagnant personal consumption caused by the worsening of business
conditions amid the financial crisis that originated from the United
States. Nevertheless, digital camera revenues posted continued
growth for the full year as a result of the brisk activity during the
first half. The bioscience field remained firm, mainly in areas work-
ing with live cells. The industrial instruments field was impacted
strongly by cutbacks in capital expenditures as the semiconductor,
electronic component and automotive-related markets remained dull.
Financial Performance
The Nikon Group established a Management Reform Committee to
address the changes in the business environment amid these harsh
economic conditions, and promptly implemented various measures
throughout the Nikon Group under the committee’s direction. As
a result of these developments, net sales for the consolidated fiscal
year decreased by ¥76,073 million (8.0%) from the previous year
to ¥879,719 million, operating income declined ¥86,984 million
(64.4%) to ¥48,185 million, net income fell ¥47,428 million
Income Analysis
Years ended March 31, 2009 and 2008
% of Net Sales
2009 2008
Net sales 100.0% 100.0%
Cost of sales (63.8) (57.7)
Gross profit 36.2 42.3
SG&A expenses (30.7) (28.2)
Operating income 5.5 14.1
Net interest expense
and dividend income 0.1 0.2
Net other expenses (1.1) (2.1)
Income before income taxes and minority interest 4.5 12.2
Income taxes (1.3) (4.3)
Net income 3.2 7.9
Note: All expenses and subtractive amounts are in parentheses.
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