Nikon 2009 Annual Report Download - page 28

(62.8%) to ¥28,056 million, and net income per share was down
62.6% to ¥70.76.
Performance by Business Segment
In the Precision Equipment Business, in IC steppers and scanners
efforts were made to promote the sales of cutting-edge models
such as the NSR-S610C immersion scanner (the world’s first mass
production model with a node of 45 nm or less). In LCD steppers
and scanners, efforts were made to expand sales of existing products
such as the FX-65S, which is compatible with exposures by 6th
generation glass plates, and of the FX903N, which is optimal for the
production of small to medium-sized high-precision liquid crystal
displays used in cell phones and automotive devices. With the
downturn in market conditions, however, Precision Equipment net
sales declined 24.4% from the previous year to ¥219,915 million.
Operating income was down 81.5% to ¥8,041 million.
In the Imaging Products Business, the digital SLR cameras
product line was enhanced with the launches of the flagship D3X
and of the D90, which is the world’s first mid-range model, the
world’s first digital SLR camera with movie recording functions.
Compact digital cameras enjoyed a significant increase in both net
sales and the number of units sold as a result of favorable sales in the
North American region together with the March 2009 release of
the COOLPIX P90, which provides a 24x optical zoom function,
the COOLPIX S630, and other new S series products that combine
functionality with stylish design. Sales of interchangeable lenses
were higher as the NIKKOR lens marked its 75th anniversary. Sales
of lenses in digital SLR camera kits were strong while sales of high-
value-added, high-priced lenses also increased with the expanded
line-up of digital SLR cameras for professionals and advanced
amateurs. Following from the previous fiscal year, continued efforts
were made to boost productivity, advance procurement reforms,
improve inventory asset turnover periods and otherwise strengthen
manufacturing, and to further reduce costs and realize higher asset
efficiency. As a result, Imaging Products net sales increased by 1.8%
to ¥596,468 million. Nevertheless, operating income dropped
52.3% to ¥40,039 million because of the large appreciation of the
yen in the second half, the slump in personal consumption amid the
economic downturn, and the decline in product unit prices under
intensified competition.
In the Instruments Business, bioscience field sales were at the
same level as the previous fiscal year, with efforts focused on promot-
ing the sales of system products including the ECLIPSE Ti inverted
research microscope and the A1 confocal microscope. Meanwhile,
the industrial instruments field posted sharp declines in sales of
industrial microscopes, measuring instruments and semiconductor
inspection equipment because of sluggish industrial instrument-
related markets, despite efforts to promote sales in various areas
including the launch of the ECLIPSE MA200 inverted metallurgi-
cal microscope. As a result, Instruments Business net sales decreased
by 24.4% to ¥44,643 million, with an operating loss of ¥2,724
million (compared with operating income of ¥4,081 million in the
previous fiscal year).
In Other Business, in the customized products business sales of
optical components and space-related products were basically flat,
while sales of special-order items and solid-state lasers declined with
the deterioration of market conditions. Glass-related business sales
increased with the commencement of shipments of LCD photomask
substrates for 10th generation equipment. The sport optics products
business was firm, with strong sales in Europe and Asia. As a result,
Other Business net sales decreased by 5.5% to ¥18,693 million.
Operating income was down 20.9% to ¥2,876 million.
Segment Performance by Region
In digital cameras, sales were down in Japan impacted by the sud-
den worsening of market conditions. Overseas sales held firm in
each country, when denominated in local currencies. Denominated
in yen, sales rose in North America and Asia/Oceania, but remained
flat in Europe, influenced by the rapid appreciation of the yen. Sales
of IC steppers and scanners declined worldwide with the cutbacks in
capital expenditures in all regions.
As a result of these developments, in Japan, net sales declined
31.6% to ¥259,844 million with operating income of ¥20,172
million. In North America, sales rose 13.2% to ¥272,457 million,
with operating income of ¥2,925 million. In Europe, sales were
down 2.3% to ¥219,119 million, with operating income of ¥6,166
million. In Asia/Oceania, sales were up 6.0% to ¥128,299 million,
with operating income of ¥11,964 million.
Financial Position
During the consolidated fiscal year ended March 31, 2009, total
assets declined ¥70,817 million from the previous year to ¥749,805
million. This mostly reflected a ¥77,183 million decrease in current
assets, with drops in cash and cash equivalents, notes receivable, and
accounts receivable—trade.
Total liabilities declined ¥56,778 million to ¥370,718 million
mostly due to decreases in notes, accounts payable—trade and
accrued expenses, despite increases in the balances of short-term
borrowings, bonds to be redeemed within one year, issuance of
commercial paper, and long-term loans payable.
Total equity fell ¥14,039 million to ¥379,087 million, despite an
increase in retained earnings from posting the fiscal year net income.
Net Sales by Industry Segment
Years ended March 31, 2009 and 2008
Thousands of
Millions of Yen, % U.S.Dollars
2009 2008 2009
Precision Equipment ¥219,915 ¥290,814 $2,238,779
Share of net sales 25.0% 30.4%
Imaging Products 596,468 586,147 6,072,159
Share of net sales 67.8 61.3
Instruments 44,643 59,043 454,469
Share of net sales 5.1 6.2
Other 18,693 19,788 190,300
Share of net sales 2.1 2.1
Total ¥879,719 ¥955,792 $8,955,707
Balance Sheet Analysis
March 31, 2009 and 2008
% of Total Assets
2009 2008
Total assets 100.0 % 100.0 %
Total current assets 69.2 72.6
Inventories 35.4 32.3
Property, plant and equipment 16.8 14.3
Investments and other assets 14.0 13.1
Total current liabilities 38.6 43.0
Short-term borrowings 4.8 1.0
Long-term debt, less current portion 8.7 7.3
Total equity 50.6 47.9
26 Nikon Annual Report 2009