Nikon 2015 Annual Report Download - page 24

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Consolidate leading position
in digital cameras–
interchangeable lens type
Continue further improve-
ments in efciency through
cost reduction and manufac-
turing process optimization
Revamp sales system and
continue developing and
penetrating into markets of
emerging countries
Pursue network connectivity
Business Strategies for Medium-Term
Management Plan Update
22 NIKON REPORT 2015
Message
Q How would you sum up the scal year ended March 31, 2015?
Compared with the scal year ended March 31, 2014, the market for digital cameras–
interchangeable lens type decreased 19%, and the market for compact digital cam-
eras declined 32%, which was more than expected. The delayed market recoveries in
Europe and China in particular had a profound effect, and the business environment
in which the Imaging Business Unit operates was generally harsh. As a result of these
factors, net sales and operating income decreased approximately 15% and 12%,
respectively, year on year, but the operating margin rose from 9.4% in the previous
scal year, to 9.7%. We are aware of the successes we had in cost reductions, which
were thoroughly implemented in procurement and focused on development and
design, and in raising the sales ratio of medium and high-end class digital single-lens
reex (SLR) cameras. The market environment is predicted to remain severe, and we
are expecting year-on-year decreases in revenue and prot in the scal year ending
March 31, 2016, but our policy is to continue investing for future growth, such as by
further tapping into emerging economies, strengthening the Nikon brand, and con-
ducting R&D for new products. A modest recovery in the market environment for digi-
tal SLR cameras is expected from the second half of the current scal year.
Q Please tell us about your initiatives under the Medium-Term
Management Plan Update.
The Imaging Products Business provides the backbone of the Nikon Group’s revenue
base. In spite of the harsh business environment, we need to strengthen our prot-
ability to continue to support the Nikon Group. I would therefore like to consolidate our
leading position in digital cameras–interchangeable lens type as well as in
Nobuyoshi Gokyu
Senior Vice President
General Manager of Imaging Business Unit
Although the business environment remains challenging,
we will regard this adversity as an opportunity to create
attractive, new products with typical Nikon quality
through initiatives that will require the entire Imaging
Business Unit to work in unison.
Imaging Business Unit
Imaging Products Business
Overview of Divisions and Business Units