Nikon 2013 Annual Report Download - page 17

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15
NIKON CORPORATION A N N U A L R E P O R T 2 0 13
REVIEW OF OPERATIONS
Nikon will work to increase the earnings of
interchangeable lens-type digital cameras
by both strengthening its product lineup and
bringing distinctive products to market. In
the area of compact digital cameras, we will
ensure profitability, while further securing
our position as a major player in the market.
We aim to achieve an operating profit margin
of 15% in the fiscal year ending March 2016.
Review of the Fiscal Year Ended March 2013
Market conditions began to deteriorate in late
November 2012. This had a negative impact on
earning capacity in the second half of the fiscal year
ended March 2013, although net sales during the
period rose sharply to a record high of well over ¥600
billion, with year-on-year gains in operating income.
During the first half of the period, our overall
business performance—including revenue, earnings
and market share—had been steady. Thus we found
the timing of the deteriorating market particularly
bad, as we had temporarily increased product
inventory in order to mitigate the risk of any adverse
effects of the flooding in Thailand, and to prepare
for the year-end shopping season. Unfortunately,
as market conditions worsened and retail prices
fell, particularly affecting entry-model digital SLR
cameras, we faced a serious decline in profitability.
This has served as an important lesson for us.
LEADING
THE MARKET
IMAGING COMPANY
YASUYUKI OKAMOTO
Director, Member of the Board and
Executive Officer
President of Imaging Company
Highlights of the Fiscal Year Ended March 2013
• Net sales, ¥751,241 million (up 28.0% year on year)
• Operating income, ¥60,711 million (up 12.5% year on year)
• Earnings from interchangeable lens-type digital
cameras came under pressure from deteriorating
market conditions
• Unit sales of compact digital cameras were on a par with
the previous fiscal year, despite the shrinking market