Nikon 2014 Annual Report Download - page 29

What was your impression of the fi scal year
ended March 2014?
Net sales improved substantially from the previous year as a
result of such external factors as increased public spending in
Japan and the weakening yen and our gain of market share in
biological microscopes.
Our market share in biological microscopes improved for two
reasons. One was our development and introduction of competi-
tive products in our line of super resolution microscopes, which
drew a considerable amount of attention in the market. The
other was that we reassessed our sales strategy. Our business
unit set out to determine reasons for lackluster sales in certain
regions and pinpointed China as one of the areas in which we
were clearly behind the competition. Specifi cally, we needed to
develop an effective network of key people at universities and
other research organizations to promote sales of our systems,
including super resolution microscopes and confocal micro-
scopes. We managed to fi nd out our customers’ needs in detail
and devise optimal solutions in software as well as hardware.
Progress in our new areas was favorable. We entered the
regenerative medicine business in August 2013 through an
investment in Healios K.K. (formerly Retina Institute Japan),
which works on regenerating the retina with iPS cells. The com-
pany is using our optical and imaging technology to optimize
the generation of retinal cells from iPS cells and in developing
products. In February 2014, we invested in JEOL Ltd., the
largest manufacturer of electron microscopes, and formed a
capital and business alliance with them. In combining the
powerful technological resources of Nikon and JEOL, we are
working to fi nd and develop new markets.
What issues do you foresee in the fi scal year
ending March 2015?
In Japan, there will be a rebound from the increase in public
spending that occurred in the year under review, which will
likely lead to a relatively depressed market in the fi scal year
ending March 2015. Steadily increasing demand in other coun-
tries may compensate for that and keep the market as a whole
fl at overall year on year. Our objective in Japan is to enhance
our sales potential and envision how to close the gap between
Nikon and the company with the top market share.
Outside of Japan, we are paying particular attention to
China and Central and South America. As we have already
established sales channels in China’s largest cities, we are now
setting up market networks in more provincial municipalities. In
Central and South America, we are planning to strengthen and
increase our bases in Mexico and Brazil, which we hope to see
make a solid impact on net sales in the fi scal year ending
March 2015.
Our new areas will require time before they fully become
businesses with positive results. Even longer amounts of time
would be necessary if we attempted to pursue these areas all
on our own, and the investment risk would be great. So we must
bear in mind exactly where our strengths lie and draw on them
as a basis for expanding into partnerships. We need to form
cooperative relationships not just with the cutting-edge research
community but also with expert stakeholders in equipment,
culture media, culture fl uid, reagents, and lab ware.
What is the outlook for your Medium-Term
Management Plan?
The Instruments Business, which comprises our business unit
and the Industrial Metrology Business Unit, has set a goal of
¥100 billion in net sales for the fi scal year ending March 2017.
To achieve this goal, expansion into new areas will be essential.
Considering time constraints, we are not able to accomplish this
all on our own, so we must accelerate our efforts in M&A and in
forming alliances.
As a general manager of this business unit, I will take the
initiative, stand at the front, and lead our way through various
challenges. For sustained growth, we must secure steady profi ts
from our existing businesses and move ahead with plans for
new businesses. United with my fellow workers in this business
unit, we are determined to forge a path to achieve our goals.
Instruments Business Sales by Category
(Years ended March 31)
Millions of yen
■
■ Microscope Solutions Business
■
■ Industrial Metrology Business
2012 2013 2014
80,000
60,000
40,000
20,000
0
53%
47%
51%
49%
46%
54%
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NIKON REPORT 2014