Nikon 2016 Annual Report Download - page 50

48 NIKON REPORT 2016
Business Climate and Issues for the Fiscal Year Ending March 31, 2017
With regard to the business climate surrounding the business
segments of the Group, in the Precision Equipment Business the
semiconductor lithography system market is expected to shrink
slightly compared with the scal year under review. In addition, the
FPD-related eld is forecast to expand signicantly in the Chinese
market in particular, mainly in capital investment for small and
medium-sized panels. In the Imaging Products Business, the
severe situation is expected to continue in markets for digital
cameras–interchangeable lens type and compact digital cameras.
In the Instruments Business, although recovery of the Japanese
and European markets remains uncertain in the microscope-
related eld, ongoing increases of market share are anticipated
in the United States and China. In addition, in the industrial
metrology-related eld as a whole, growth in capital investments is
expected to be sustained. In the Medical Business, strong perfor-
mances for retina diagnostic imaging equipment are expected to
continue in the United States, Asia, and Oceania.
Under these circumstances, the top priority of the Group is to
continue to restructure its business portfolio. While strengthening
the competitiveness of its existing businesses and engaging in
structural reforms, the Group will work to foster the Medical
Business, expand the Microscope Solutions and Industrial
Metrology businesses, and continue restructuring into a corporate
entity that grows with a portfolio of six businesses. Through these
efforts, the Group will endeavor to create new value and get back
onto a growth track.
Suppliers primarily of parts for imaging products were affected
by the 2016 Kumamoto Earthquake that occurred in April and
disrupted production and sales in the rst half of the scal
year ending March 31, 2017. The Group is working toward an
early recovery of the supply chain to minimize the impact
on its operations.
Capital Expenditures and R&D Spending
Capital expenditures were ¥34,498 million for the scal year ended
March 31, 2016, a 6.0% increase from the previous scal year.
Within individual business segments, the expenditures were
¥9,739 million for Precision Equipment, ¥10,573 million for
Imaging Products, ¥1,597 million for Instruments, ¥575 million for
Medical, and ¥6,878 million for Other businesses. The Group
made investments of ¥5,136 million as corporate assets that are
not allocated to the respective reportable segments. From the
previous scal year ended March 31, 2015, the depreciation
method of the Group has been unied to the straight-line method.
R&D costs of ¥66,781 million edged up 0.1% compared with
those of the previous scal year, and the proportion of R&D
spending to net sales was 8.1%, an increase of 0.3 percentage
point. Within individual business segments, the costs were
¥17,691 million for Precision Equipment, ¥25,355 million for
Imaging Products, ¥5,753 million for Instruments, ¥3,617 million
for Medical, and ¥14,365 million for Other businesses.
Financial Position
Although inventories rose ahead of the increase in sales of FPD
lithography equipment expected in the scal year ending March
31, 2017, current assets decreased ¥23,869 million due to a
decrease in notes and accounts receivable—trade resulted from
the decline in sales. Property, plant and equipment dropped
¥20,425 million, inuenced by the impairment loss and foreign
Sales by Business Segment
(Year ended March 31, 2016)
%
■ Precision Equipment ■ Imaging Products
■ Instruments ■ Medical ■ Other
Operating Income (Loss)
by Business Segment
(Years ended March 31)
Millions of yen
■ Precision Equipment ■ Imaging Products
■ Instruments ■ Medical ■ Other ■ Corporate expenses
2013 2014 20152012 2016
–40,000
0
40,000
80,000
120,000
R&D Costs
(Years ended March 31)
Millions of yen
80,000
60,000
40,000
20,000
0
2013 2014 20152012 2016
22.2
63.2
9.4
2.2 3.0
* The “Other” segment comprises businesses not included in reportable segments, such as the Glass Business and Customized Products Business.
Beginning with the scal year ended March 31, 2012, the Group has revised its method of accounting for corporate expenses.
¥822,916
million