Special loss burden associated with structural reforms

「A breakdown of structural reform-related costs for the current consolidated fiscal year is shown in the table below.」

「当連結会計年度（自 2025年４月１日 至 2026年３月31日）構造改革関連費用7,385百万円を計上しております。」

「During the current interim consolidated accounting period, the company optimized service locations in the Precision Equipment Business and reorganized locations of the company and its overseas subsidiaries, recognizing structural reform-related costs of ¥891 million in the Precision Equipment Business and ¥809 million in company-wide profit or loss not allocated to segments.」

「Following a review of the expected future utilization of assets and plans to repurpose equipment, the company recognized ¥17,373 million in disposal and valuation losses on assets whose net realizable value was below their carrying amount.」

「Following a review of the outlook for future sales and plans to repurpose equipment to strengthen business activities, the company recognized ¥11,807 million in disposal and valuation losses, primarily in the Precision Equipment Business.」

「We included ¥1,753 million in the transfer to profit or loss of the cumulative translation adjustment upon completion of the liquidation of Nikon Imaging (China) Co., Ltd., a Chinese production subsidiary. We also included ¥869 million in additional retirement allowances in other operating expenses in connection with the optimisation of sales and production locations being implemented as part of structural reforms in the Imaging business.」

「Structural reform-related costs for the current consolidated fiscal year included costs associated with withdrawing from low-profitability products in the Industrial Equipment Business and the liquidation of NIKON DO BRASIL LTDA., the Brazilian sales subsidiary, for a total of ¥1,841 million.」

「Structural reform-related costs for the current consolidated fiscal year included costs associated with structural reforms resulting from the suspension of operations at a Chinese production subsidiary and the transfer of the CMM business of Nikon Metrology NV, the company's subsidiary in Belgium, for a total of ¥8,732 million.」

「During the nine-month period of the current consolidated fiscal year, the company recognized ¥5,933 million in structural reform-related costs under “Other operating expenses,” including enhanced retirement benefits for employees, one-time costs related to consolidating production sites and impairment losses arising from a series of initiatives. Of this amount, ¥3,209 million was recognized as enhanced retirement benefits for employees.」

「The one-time costs expected to arise during the current fiscal year from the suspension of NIC's operations are currently estimated at approximately ¥7 billion, including tax expenses.」

「Structural reform-related costs for the consolidated fiscal year comprised ¥27,447 million in inventory valuation and disposal losses, mainly in the semiconductor equipment business; ¥16,655 million in enhanced retirement benefits and other costs associated with inviting applications for voluntary retirement in Japan; and ¥7,472 million in losses related to discontinuing the commercialization of products, among other items, for a total of ¥53,370 million. These costs arose from a strategic shift from sales growth to strengthening profitability aimed at improving the company's business structure and enhancing corporate value.」

「The Group has shifted its strategy from sales growth to strengthening earnings power and is implementing structural reforms to improve its business structure and enhance corporate value. Accordingly, during the cumulative third quarter of the fiscal year, it recognized losses related to inventory write-downs and inventory disposals carried out in the semiconductor equipment business as costs related to structural reforms.」

「The company expects to recognize approximately ¥48 billion in special losses for the fiscal year ending March 2017 as costs related to the structural reforms.」