Nikon 2011 Annual Report Download - page 9

Interview with the President 7
First of all, I wish to express my sincerest condolences to all those who
have lost family and friends during the Great East Japan Earthquake and its
aftermath. I also wish to express my deepest sympathies to those whose
communities have suffered damage from the earthquake and tsunami and
those who have suffered personal injury or damage to property. Further, it
is with profound regret that I must report that members of the Nikon Group
also died in the disaster.
In the fiscal year ended March 2011, the earthquake had a negative impact
on net sales amounting to ¥8,000 million and a negative impact on operating
income of ¥3,000 million. Furthermore, one plant and seven manufacturing
companies in the Group sustained damage from the disaster and had to
suspend operations. However, by the end of March all facilities had steadily
begun to resume operations, and by the end of April 2011 we were able to
restore our production capacity to the pre-quake level.
Since the earthquake, I have been moved by the high level of determination
shown by the Group’s front-line personnel toward recovery, as well as their strong
teamwork. In extremely difficult circumstances, their efforts have exceeded
senior management’s expectations and we are very grateful. We have received
a large number of messages of encouragement from all over the world, and
we feel thankful for this overwhelming support. It has been a strong reminder
of the trust enjoyed by the Nikon brand and the high expectations it carries.
In the fiscal year ended March 2011, significant factors that contributed to
overall Group operating results included a recovery in market conditions for
IC steppers and scanners, and growth in the market for LCD steppers and
scanners in the Precision Equipment Company; continuing robust sales in
the Imaging Company; and a recovery in the industrial instruments market in
the Instruments Company. As well as absorbing the impacts of the earthquake
and appreciation of the yen, in line with our plans we achieved an increase of
13% in net sales and a return to profitability.
In the Precision Equipment Company, underpinned by a recovery in global
demand for semiconductor devices and expansion in the mobile equipment
market, we recorded an increase in unit sales of the cutting-edge IC steppers
and scanners and LCD steppers and scanners for large-scale LCD panels.
This enabled the Precision Equipment Company to post a large increase in
net sales and return to profitability. In the Imaging Company, the digital SLR
camera market steadily expanded, and demand in the compact digital camera
market continued to increase, driven particularly by emerging markets. These
conditions meant the Imaging Company was
able to absorb the effects of the appreciation
of the yen and record increases in
both net sales and operating income.
What has been the
impact on Nikon from
the Great East Japan
Earthquake, which
occurred on March 11,
2011, and how have
you responded to the
earthquake?
Despite such severe
circumstances as the
earthquake and the
appreciation of the yen,
Nikon achieved a return
to profitability in the
fiscal year ended March
2011. What is your
analysis of the factors
behind this result?