Nikon 2016 Annual Report Download - page 11

Summary of the
Fiscal Year
Ended March
31, 2016
Although targets were achieved, results were unsatisfactory in
terms of progress made on the Medium-Term Management Plan
Under the Nikon Group’s Medium-Term Management Plan Update announced in May 2015, the targets for operat-
ing income were stated as ¥30.0 billion in the scal year ended March 31, 2016, and ¥38.0 billion and ¥65.0 billion
in the scal years ending March 31, 2017 and 2018, respectively. The result in the scal year under review—the initial
year of the plan—was ¥36.7 billion, which was higher than planned. Nonetheless, the gure represented a 16%
decrease when compared with the result for the scal year ended March 31, 2015. While we were able to surpass
the plan’s target, when viewed as an overall Company performance in no way can this be considered a satisfactory
result. This year was positioned as an important year for building up strength to achieve targets we had said would
improve signicantly in the scal year ending March 31, 2018. I will convey repeatedly within the Company that by
no means are we to be satised with the achievements of the rst year of the plan.
When the results for the scal year ended March 31, 2016, are viewed by main business, although sales of
semiconductor lithography systems did not increase as much as planned, the market responded to activation from
capital investment in small and medium-sized high-denition panels, there was a signicant increase in the number
of FPD lithography systems sold, and the Precision Equipment Business achieved a signicant overall year-on-year
increase in income of 75%. Factoring in the income of the Semiconductor Lithography Business over the past few
years, the future cash ow from ArF immersion lithography systems was judged to be less than assumed, and the
Semiconductor Lithography Business recorded an impairment loss of approximately ¥7.0 billion with respect to xed
assets, including the manufacturing facilities held.
In the case of the Imaging Products Business, sales of the expected mainstay digital SLR cameras were weak,
for example in the year-end shopping season of each country. Furthermore, the sales of other models were unable
to cover the effects of delaying the launch of the new D500 model, resulting in a 19% decline in operating income.
In the Instruments Business, sales in both the Microscope Solutions Business and the Industrial Metrology
Business were favorable, and the operating income of the Instruments Business overall showed an increase of
approximately double.
In the Medical Business, the performance of Optos Plc, the U.K.-based retina diagnostic imaging equipment
company that was made a wholly owned subsidiary in May 2015, is as far along as planned though there has been
amortization of goodwill defrayment. The Medical Business as a whole, however, recorded an operating loss of
¥4.6 billion due to its posting of R&D expenses and other for its development.
To Our Stakeholders
Kazuo Ushida
President
Representative Director
We are increasing protability by means of a
six-business portfolio to become a corporate entity
that will continue to grow over the next century.
09
NIKON REPORT 2016
BUSINESS STRATEGY