Nikon 2016 Annual Report Download - page 19

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Medium-Term Management Plan Progress Report
Business unit Target (Ideal gure) Achievements by the scal year ended March 31, 2016
Semiconductor
Lithography
Business
• Optimizing lithography systems for customer processes
and sustaining stable operations
• Focusing on expanding NSR-S630D sales and ArF
immersion scanner market share
• Promoting further efciency improvements, aiming to
exceed breakeven-point sales of ¥120 billion to post prot
in the scal year ending March 31, 2018
• Launched new NSR-S631E in January 2016
• Promoted cost reduction through R&D spending cuts and personnel
transfers to growth businesses
FPD Lithography
Business
• Continuing to maintain a top share and high protability
• Developing and launching next-generation higher-denition
FPD lithography systems for small and medium-sized as
well as large-sized panels
• Still maintained a top share and high protability; maintained a high
share of systems for small and medium-sized high-denition panels
in particular
• Established the Solutions Development Department and expanded the
function that picks out customer needs and leverages development
• Launched new FX-68S for small and medium-sized high-denition
panels in March 2016
Imaging Products
Business
• Strengthening digital cameras–interchangeable lens type
• Revamping sales system and continuing to develop and
penetrate markets in emerging countries
• Continuing further improvements in efciency through
cost reductions and manufacturing process optimization
• Pursuing network connectivity
• Announced the D5 and D500, agship digital SLR models of the FX
and DX formats, respectively
• Depending on market conditions such as economic climate, reviewed
strategies in emerging countries by region
• Continued reduction of procurement costs and sales expenses
• Announced SnapBridge app that realizes constant connection between
users’ cameras and smart devices
Microscope
Solutions Business
• Entering regenerative medicine contract manufacturing
business and accelerating launch of stem cell-related
businesses
• Securing the leading position in the biological microscope
market
• Signed a strategic collaboration agreement with Swiss company Lonza;
established Nikon CeLL innovation Co., Ltd. (wholly owned by Nikon);
made progress with preparations for the commercialization of contract
manufacturing business, including cells for regenerative medicine use
in Japan
• Posted record operating income from biological microscopes in the
scal year ended March 31, 2016
Industrial Metrology
Business
• Utilizing M&As and alliances centered on X-ray inspection
and non-contact sensor 3D metrology systems to expand
business scale and elds
• Expanding application software development capabilities
in addition to hardware sales to evolve into a business
that provides solutions
• Invested approximately $10 million in U.S. venture company
Tribogenics Inc., which is involved in X-ray analysis equipment
• Emphasized solutions proposal-based sales in anticipation of
advances in IoT; established the Business Planning section responsible
for exploring market and customer needs as well as improving
problem-solving capabilities
Medical Business • Focusing on nurturing in-vitro diagnosis business; earlier
development of point-of-care-testing (POCT) devices,
and ophthalmic instruments
• Continuing M&As and Corporate Venture Capital (CVC)
investments
• Prioritizing development of growth driver businesses
remains unchanged
• Acquired Optos Plc, a U.K. retina diagnostic imaging equipment
company, as a wholly owned subsidiary
• In addition to transfers from other divisions, actively hired career
professionals familiar with the medical eld; expanded business
unit’s scale
Medium-Term Management Plan Numerical Results and Targets (Billions of yen)
2015 2016 2017
(forecast)*1
2017
(target)
2018
(target)
Net Sales
Corporate 857.7 822.9 840.0 890.0 990.0
Precision Equipment Business 170.7 182.4 260.0 200.0 210.0
Imaging Products Business 586.0 520.4 440.0 530.0 570.0
Instruments Business 72.3 77.2 90.0 100.0 120.0
Medical and New Businesses — 18.3*222.0*224.0 50.0
Other 28.6 24.4 28.0 36.0 40.0
Operating Income (Loss)
Corporate 43.4 36.7 46.0 38.0 65.0
Precision Equipment Business 8.3 14.6 40.0 18.5 27.0
Imaging Products Business 56.6 45.7 35.0 42.0 55.0
Instruments Business 1.1 2.8 4.0 6.0 10.0
Medical and New Businesses — –4.6*2–6.0*2–6.0 –9.0
Other 6.7 4.5 4.0 4.5 8.0
*1 At the close of the scal year ended March 31, 2016 (announced on May 13, 2016)
*2 Medical Business only
17
NIKON REPORT 2016
BUSINESS STRATEGY