Nikon 2009 Annual Report Download - page 8

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Considering these factors, we are forecasting an operating
and net loss for the fi scal year ending March 2010. However,
we are confi dent that the program of structural reforms
will allow us to achieve a turnaround in profi tability in the
fi scal year ending March 2011, and return us to a sustain-
able growth track in the fi scal year ending March 2012.
Despite the diffi cult business environment, to provide
for continued growth the Nikon Group will faithfully
implement the fundamental policies in the Medium Term
Management Plan described previously, reforming its busi-
ness and earnings structure, lowering the break-even point,
and pursuing product development for sustainable growth.
At the same time, Nikon will actively pursue opportuni-
ties that support future growth. One of our goals has
been to make the Instruments Company the third pillar
of the Nikon Group alongside the Precision Equipment
Company and the Imaging Company, with net sales in
the business of ¥100,000 million. As part of our effort
to achieve this, in June 2009 we announced a plan for a
friendly tender offer for Metris NV, a Belgian company
that manufactures measurement equipment. Metris has
advanced technology and products in the market for
non-contact, three-dimensional measurement systems, and
its business lines will neatly complement those of Nikon.
Along with the broadening of product lines, Metris’s close
relationship with the automotive and aerospace industries
will reinforce our customer base.
The Precision Equipment Company is currently con-
structing a new building at the Kumagaya Plant to expand
production of cutting-edge ArF immersion scanners, to
meet an anticipated increase in demand.
The Core Technology Center, which develops advanced
elemental technology and conducts basic research, is the
source of the Nikon Group’s cutting-edge technological
and manufacturing capabilities. One of our immediate
issues is how the Center can better contribute to increasing
the competitiveness and earnings capabilities of each busi-
ness unit. As part of this consideration, we are narrowing
the focus of capital expenditures and R&D, and looking
ahead to the economic recovery, plan to spend ¥41,000
million in capital expenditure during the fi scal year ending
March 2010, with ¥56,000 million in R&D spending.
6 Nikon Annual Report 2009