Nikon 2015 Annual Report Download - page 7

05
NIKON REPORT 2015
Our Message
Enhance capabilities to respond to changes in business environment
To continue on a point I previously mentioned, in a business environment that is going to be rapidly changing, I
believe honing our capabilities to respond to such changes will be essential. For that reason, initially in existing
businesses, we need to lower costs, seek to reduce lead times to the very last minute, and bring about improve-
ments in business efciency. Providing products and services that meet changing needs at the same time require
us to expand our sales volumes. In the businesses that are positioned for growth—Medical, Microscope Solutions,
and Industrial Metrology—I therefore would like to enhance the proposals of our solutions business model in
accordance with changes occurring in the world and target sales expansion.
However, rather than expanding in a single bound, our policy is to steadily bring about growth while gaining
footholds. The same may be said with M&A, the aim of which is not merely expansion in business scale. We will
continue to make judgments with an emphasis placed on afnity with Nikon, including companies whose sales and
production complement ours because of region or are expected to generate synergies with Nikon technologies.
Without changing the existing policy of making advances in M&A while maintaining a robust nancial base, our
aim is to maintain an equity ratio of more than 50%. A specic ROE target was not stated in the Medium-Term
Management Plan Update announced in May 2015, but we believe ROE will continue to improve as a conse-
quence of regular rises in operating income and total assets turnover.
Furthermore, I hear questions regarding reviews of the production bases of the Imaging Products Business, the
market for which is shrinking, but these reviews will be conducted in accordance with changes in the business
environment. We are working on optimization, such as the leveraging of other businesses where growth is expected,
Basic Policy of Medium-Term Management Plan Update Announced in May 2015
Next 100 – Transform to Grow
Transforming into a corporate entity that grows
by means of its six-business portfolio
By maintaining the stable earnings of the FPD Lithography Business and the Imaging Products Business as well as pro-
moting the streamlining of existing businesses by returning the Semiconductor Lithography Business to prot and posi-
tioning the Microscope Solutions, Industrial Metrology, and Medical businesses as growth businesses, we are rebuilding a
six-business portfolio and transforming into a corporate entity that will grow sustainably.
development. We are targeting improved prots for the entire Nikon Group in the scal year ending March 31, 2018.
With regard to M&A, of the ¥200 billion nancial plan approximately ¥150 billion remains. While carefully
reviewing the content of M&A issues, we will enterprisingly conduct investment activities to enter businesses other
than those in the medical eld that arise and build on these opportunities to achieve future signicant advances.
If we were to only think of short-term prot, we would have the option of securing a certain level of prot by,
for the time being, curbing such investments and conducting business in existing products and services. However,
if we adopted that approach, the possibilities for growth would be closed to us. For Nikon to become a corporate
entity capable of realizing sustainable growth for the next 100 years, while utilizing its world-class technological
capabilities and contributing to people’s lifestyles and to society, I believe we need to take the next step without
loosening our hold on our existing businesses and our growth businesses.