Nikon 2010 Annual Report Download - page 6

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Interview with the President
4
How would you assess Nikon’s
performance for the fi scal year
ended March 2010? Also, please
give a summary of the three-year
Medium Term Management Plan
beginning in the fi scal year ending
March 2011, which was announced
in June 2010.
Nikon’s consolidated net sales for the fi scal
year ended March 2010 declined 10.7% from
the previous fi scal year to ¥785,499 million,
with an operating loss for the period of
¥13,854 million. The decline in sales stemmed
mainly from a contraction in the market for
IC and LCD steppers and scanners in the
Precision Equipment Company, which shrank
to approximately half that of a year earlier, as
well as from the impact of the appreciation
of the yen on the Imaging Company.
The operating loss was the result of the sharp
decline in the market for steppers and scan-
ners, along with extraordinary factors such as
an additional write-down of inventories we
were forced to post in the Precision
Equipment Company. This write-down was
recorded as a lump sum during the fi rst half
of the subject fi scal year, and we achieved
profi tability in the second half on positive
performance in the Imaging Company.
For the fi scal year ending March 2011, we
anticipate an increase in consolidated net
sales of around 10% from the previous fi scal
year, and the recovery of operating income.
In addition, we expect to regain a solid
growth track by the fi scal year ending March
2012. We plan to secure higher profi tability,
and have set a target for the fi scal year
ending March 2013 of ¥1,100,000 million in
net sales, with operating income of ¥120,000
million. To achieve this, we plan to establish a
solid business foundation to minimize the
impact the fl uctuations in the economy have
on earnings.
What sorts of measures will be
necessary to establish a solid
business foundation?
Nikon has consistently manufactured and
provided products incorporating advanced
technology. To establish a solid business
foundation, we need to bolster business
functions across the board, including market-
ing, sales and service. Specifi cally, the effi -
ciency of business processes needs to be
MAKOTO KIMURA
Representative Director,
President, Member of the Board