Nikon 2009 Annual Report Download - page 7

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we believe it is essential to (1) strengthen earnings capabili-
ties to secure profi ts even in the severe environment, and
(2) develop products for sustainable growth. These two
central themes are the twin pillars for this plan.
First of all, to strengthen earnings capabilities to secure
profi ts even in the severe environment, we will reorga-
nize the business locations of the Precision Equipment
Company at a global level to be more appropriate to the
changes in the market. Specifi cally, we will reorganize and
consolidate our four production subsidiaries in Japan into
two companies, while unifying and streamlining as much
as possible the marketing and servicing operations of our
two overseas subsidiaries in the United States and Europe.
Furthermore, in Japan and Asia we are pursuing a more
effi cient business by scaling back operations in line with the
business scale. Through these measures, we will
make reductions in production and service personnel in
Japan, as well as sales and service personnel overseas,
which we anticipate will cut fi xed costs by approximately
¥8,000 million.
For the Imaging Company, we will take steps to establish
a production structure better able to withstand further
appreciation of the yen. Nikon anticipates that compared
to the fi scal year ended March 2009, the yen will continue
to rise through the fi scal year ending March 2012. In
response, we will pursue such strategies as shifting more
production to countries such as Thailand and China and
expanding procurement of components in foreign currencies.
Next, to develop products for sustainable growth, we
will develop and commercialize such products as cutting-
edge IC and LCD scanners and next-generation digital
cameras, strengthen product development of bioscience
and industrial instruments, cultivate new businesses and
explore new business fi elds. While developing new prod-
ucts, we will examine new ways to develop businesses and
become a leader in each industry, setting the stage to stand
at the forefront of the economic recovery.
explore new business fi elds. While developing new prod-
at the forefront of the economic recovery.
What are your forecasts for the fi scal year
ending March 2010, and the areas on which
Nikon intends to focus?
We will boldly move ahead with the structural
reforms for the corporate group overall, and
make strategic moves that pave the way to future growth.
We anticipate that semiconductor manufacturers will
sharply scale back capital expenditures during the fi scal
year ending March 2010, and while there are signs of rising
operation rates among panel manufacturers, we expect that
the decline in capital expenditure will continue. In digital
cameras, we foresee a diffi cult market environment, with
the yen expected to remain strong, and decline in product
prices arising from more intense competition with the
launch of new products by all manufacturers.
Q.
A.
Nikon Annual Report 2009 5