Fundamental structural reform to strengthen earnings capacity and improve the business structure

「In the Precision Equipment Business, the Company recorded ¥896 million in enhanced severance payments and other costs associated with optimizing its service sites.」

「Although the rollout of growth drivers is steadily progressing, performance is below expectations and improving profitability remains an issue. In parallel with strengthening its business strategy, the Company is consolidating and reorganizing sites in Japan and overseas and improving balance-sheet efficiency.」

「Based on these results and issues, the Company has positioned fiscal 2025 as a year for establishing the structure needed to achieve its vision for 2030, and will make self-directed efforts to select investments and rationalize its structure, aiming to balance a recovery in short-term performance with investment for long-term growth.」

「In the Imaging business, we are working on optimisation of production and sales, supply-chain and logistics reforms, thorough cost reductions, stronger digital marketing and development-efficiency improvements, and continue to strengthen the business’s earnings structure.」

「In response, we are working on measures including optimisation of production and sales, supply-chain and logistics reforms, thorough cost reductions, stronger digital marketing and development-efficiency improvements, and continue to strengthen the business’s earnings structure.」

「In response, we continued to strengthen the business’s earnings structure through measures including the optimisation of production and sales locations, thorough cost reductions, development-efficiency improvements, and supply-chain and logistics reforms.」

「In summary, the three-year period under this medium-term management plan was one in which the Company was able to make steady progress amid the unexpected spread of COVID-19.」

「First, the Company worked to further advance structural reform in the Imaging Business while strengthening business earnings capacity, including by expanding the service and adjacent businesses in the Precision Equipment Business.」

「The Imaging Business is proceeding as planned with structural reform, begun in the fiscal year ended March 2020, to fundamentally transform its business structure, while steadily developing a business focused on professional and enthusiast customers.」

「In response, we are implementing business structural reforms, including optimising production and sales locations, pursuing thorough cost reductions, and reforming SCM, logistics and other functions, while moving toward a business structure capable of generating a certain level of profit.」

「As part of strengthening the profitability of existing businesses, we are restructuring the imaging business through more extensive structural reforms. In our principal businesses, in addition to reviewing the production and sales structures, we are working to improve profitability through cost reforms including logistics reforms and further streamlining of administrative and indirect operations.」

「Amid a challenging business environment in which market contraction is accelerating, the Company is advancing more far-reaching structural reform to ensure the business is rebuilt.」

「The Imaging Business began structural reform to fundamentally transform its business structure as the market was expected to contract more than initially anticipated.」

「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.」

「In the current fiscal year, the final year of the structural reform announced in November 2016, the Group worked on the remaining issues in preparation for the period after structural reform.」

「In the current fiscal year, the final year of the structural reform announced in November 2016, the Group continued working to improve its management structure to achieve sustainable corporate value creation. Specifically, it promoted the establishment and steady operation of systems to embed portfolio management, while working to implement company-wide business management based on management indicators that emphasize capital efficiency. It also promoted stronger corporate governance with the aim of building a more transparent and disciplined structure.」

「Since announcing the implementation of structural reform in November 2016, the Group has pursued structural reform to enhance corporate value and undertaken measures to optimize its production and sales structure and improve the efficiency and strengthen the functions of its head office.」

「Since announcing the implementation of structural reform in November 2016, the Group has pursued structural reform to enhance corporate value and undertaken measures to optimize its production and sales structure and improve the efficiency and strengthen the functions of its head office. As part of these efforts, in October 2017 the Group decided to suspend operations at Nikon Imaging (China) Co., Ltd., a consolidated subsidiary in the Imaging Business. During the cumulative third-quarter period, ¥5,933 million in costs arising from these initiatives, including enhanced severance payments to employees, one-time costs related to the consolidation of production sites, and impairment losses, was recorded as structural reform-related costs under “Other operating expenses.”」

「We designated the fiscal year under review as Phase 2 of the structural reforms announced in November 2016. Our management policies were to achieve profitability in the semiconductor equipment business, strengthen the imaging business's earnings model, and make a full-scale start on improving our management structure. We worked on measures including a fundamental review of our cost structure and the implementation of new management processes for business performance.」

「Based on the structural reform plan announced in November 2016, the Company will continue implementing the following measures to shift its strategy from sales growth to strengthening earnings capacity.」

「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.」

「To strengthen profitability and improve the corporate structure with a view to enhancing corporate value across the Group, we will review the business strategies of the semiconductor equipment and imaging businesses, optimize our global production, sales and R&D structure, and optimize our organization and workforce, including the head office functions.」