Nikon 2014 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2014 Nikon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

BUSINESS STRATEGY
Management Strategy
A Medium-Term Management Plan describing growth through
a portfolio of six businesses
The markets of our core businesses—the Semiconductor Lithography Business, the FPD
Lithography Business, and the Imaging Products Business—have reached degrees of matu-
rity that have little prospect for dramatic growth in the medium-to-long term, so the time
has come to enhance our operating structure. For the fl edgling Medical Business that we
have started, we need to create a road map that clearly places profi tability on the horizon.
With these issues in mind, the Medium-Term Plan envisions our metamorphosis as
a corporate entity from being driven predominantly by profi ts from the FPD Lithography
Business and the Imaging Products Business to growth through a portfolio of six businesses:
the Semiconductor Lithography Business, the FPD Lithography Business, the Imaging
Products Business, the Microscope Solutions Business, the Industrial Metrology Business,
and the Medical Business. Financial targets set for the entire Company for the year ending
March 2017 are net sales of ¥1.2 trillion, operating income of ¥110 billion, and an operat-
ing margin of 9.2%.
In the three businesses that have presently led growth—the Semiconductor Lithography
Business, the FPD Lithography Business, and the Imaging Products Business—we will gen-
erate additional cash by both expanding sales and reducing costs. In areas where we expect
future growth—the Medical Business, the Microscope Solutions Business, and the Industrial
Metrology Business—we will funnel a sizeable portion of our business resources to make
these businesses profi table in the fastest possible timeframe. For the Medical Business, we
have set a target of ¥200 billion in net sales, and the Microscope Solutions Business and
the Industrial Metrology Business have a combined target of ¥100 billion in net sales by the
fi scal year ending March 2017.
In the fi scal year ending March 2015, the initial year of the Medium-Term Plan, we
do not expect the Medical Business to generate any sales, and consequently the other fi ve
businesses must achieve profi tability to support our investment in the Medical Business as
it strives to contribute to the Group’s earnings.
To Our Stakeholders
For additional details on the strate-
gies of each business, please refer
to the series of interviews,
“Interviews with Key People on the
Strategy Going Forward.”
P. 18 –31
10 NIKON REPORT 2014