Presentation Material of Financial Results for the Year Ended ...Ⅰ．Financial Results for the Year Ended March 31,2010 Ⅱ．Estimation for the Year Ending March 31,2011 Ⅲ．Reference

株式会社ニコン2006年月5月15日

Financial Results for the Year Ended March 31, 2010

Forward-looking statements for earnings and other performance data contained herein are based on information currently available to the Company, and all potential risks and uncertainties are taken into account. The Company asks that investors understand that changes in conditions may cause actual performance to significantly differ from these projections.

NIKON CORPORATIONCorporate Communications & IR Dept.

May 11,2010

Conference in Tokyo (May 11, 2010)NIKON CORPORATION

Ⅰ． Financial Results for the Year Ended March 31,2010

Ⅱ． Estimation for the Year EndingMarch 31,2011

Ⅲ．Reference Data

Agenda

+ 15.5Net SalesNet Sales

Operating IncomeOperating Income

Ordinary IncomeOrdinary Income

Net IncomeNet Income

Exchange Rate(yen)US$EURO

Exchange Rate(yen)US$EURO

+ 4.4

+ 3.7

+2.1

- 94.2

- 40.7

- 63.0

- 62.1

Previous Forecastas of Feb 4th（B）

1H2H

10/3Actual ( C )

1H2H

Change

( C ) – ( A )

Financial Highlights for the Year Ended March 31, 2010

879.7

5.5%

5.4%

3.2%

101144

28.1

47.7

48.2

487.1392.6

54.1- 5.9

53.1- 5.4

33.6- 5.5

09/3(A)

1H2H

10695

163125

Change

( C ) – ( B )

-%

-%

-%

93132

785.5

-%

-%

-%

- 13.9

- 15.3

- 12.6

93131

368.1417.4

- 19.55.6

- 22.37.0

- 17.75.1

770.0

- 16.0

- 19.0

- 17.0

368.1

Achieved turnaround in 2H after last 2 half-year periods of loss with a full year result in deficit due to appreciation of Yen and extra write-down of inventory in 2Q in Precision Equipment business.

1

401.9

- 19.53.5

- 22.33.3

- 17.70.7

9690

133129

9690

133131

% vs Net Sales

Billions of yen

% vs Net Sales

% vs Net Sales

Net Sales:- 1.4

Op. Income:- 1.1

Impact onNet Sales:

- 52.0

Op. Income:- 27.0

Impact on

Net SalesNet Sales


IC Steppers & ScannersNew / Refurbished


LCD Steppers & Scanners


IC Steppers & Scanners

Market Scale


Market Scale

1H2H

Previous Forecast

As of Feb. 4th1H2H

10/3Actual Result

1H2H


Market Scale


Market Scale

09/3Actual Result

Precision Equipment Company

150.1

- 58.6

36/13 units

45 units

112 units

66.383.8

- 44.0- 14.618/418/9

1629

74 units

-%

219.9

8.0

61/17 units

65 units

200 units

117.2102.7

12.2- 4.2

32/1029/7

3728

137 units

3.6%

140.0

- 58.0

33/11 units

44 units

- units

- units

-%

Sales volume declined by 40% for IC Steppers & Scanners and 30% for LCD Steppers & Scanners compared to the previous year due to market stagnation. Operating Loss result recorded large deficit because of extra write-down of inventory in 2Q.

66.373.7- 44.0- 14.018/415/7

1628

Billions of yen

% vs Net Sales

2

20

3 4

10

11

16

1515

14

14

16

1

0

10

20

30

40

50

60

70

i-line

KrF

ArF

ArFimmersion

EUVL

09/3 10/3

1621 21

22

19 19

5

27

4

0

10

20

30

40

50

60

70

～4G

5G/6G

7G~

Precision Equipment Company

44

65

33

61

Prev. Forecast

36

45

IC Steppers & Scanners Sales by Technology

LCD Steppers & Scanners Sales by GenerationUnits

09/3 10/3Prev. Forecast

Units

3

Previous ForecastAs of Feb. 4th

1H2H

10/3Actual Result

1H2H

09/3Actual Result

Net SalesNet Sales


Single-lens ReflexDSC


Compact DSCCompact DSC

SLR-DSCMarket ScaleSLR-DSC

Market Scale

ILMarket Scale

ILMarket Scale

InterchangeableLenses


C-DSCMarket Scale

C-DSCMarket Scale

Imaging Company

1H2H

596.5

40.0

3,420

10,330

9,130

337.2259.3

42.0- 2.0

14,800

4,870

103,690

10,88017,720

569.5

52.1

3,670

11,510

275.3294.2

26.525.6

1,6602,010

5,1306,380

5,450 2,4503,000

9.1%

102,740

1,740

Increased in Operating Income under severe market condition despite lower Net Sales than the previous year due to appreciation of Yen. Sales volume increased by 11% for Compact DSC while shipment volume of its market was slightly lower than the previous year.

1,680

5,0605,270

2,4502,420

10,00016,000

560.0

50.0

3,550

11,500

275.3284.7

26.523.5

1,6601,890

5,1306,370

5,150 2,4502,700

8.9%

98,000

Cameras & Lenses(1,000 of units sold)

% vs Net Sales 6.7%

Billions of yen

4

0

100

200

300

400

500

600

41%

22%

12%

25%

40%

23%

10%

27%

41%

24%

10%

25% C-DSC

SLR-DSC

I/L

Others


Imaging Company

5

Sales value ratio by Product

Billions of yen

0

10

20

30

40

50

Previous Forecast

As of Feb. 4th

1H2H 10/3

1H2H09/3 1H

2H

Net SalesNet Sales


Instruments Company

44.6

- 2.7

23.221.4

- 1.3- 1.4

45.0

- 10.0

17.827.2

- 2.6- 7.4-% -%

45.1

- 9.3 - 2.6- 6.7-%

17.8

57%

19%

18%

6%

64%

15%

18%

3%

63%

16%

18%

3%

The Company worsened in deficit compared to the previous year due to Industrial equipment business hit by economic downturn and also extra integration expense of Metris NV (currently Nikon Metrology NV).

27.3

% vs Net Sales

Billions of yen

Billions of yen


BiologicalMicroscopes

IndustrialMicroscopes

SemiconductorInspection EquipmentMeasuring Instruments

6

379. 1 372. 0

427. 5370. 7 368. 6

393. 1

0

300

600

900

2 2 4 .5 2 3 0 .9 2 5 6 .0

5 7 .5 5 2 .15 6 .1

2 6 4 .7 2 6 5 .2 2 0 7 .0

1 5 9 .9 1 2 1 .21 1 3 .8

1 1 4 .08 0 .4 1 0 7 .7

0

300

600

900

09/308/3 09/308/3

Balance Sheet

50.5%47.9%

50.2%

45%

50%

55%

10/3 10/3

820.6 820.6749.8 749.8

Liabilities & Equity

Fixed Assets

Assets

Other current assets

InventoriesNotes & accountsReceivable-trade

Cash & timedeposit Total

LiabilitiesTotal Equity Capital ratio

Billions of yenBillions of yen

740.6 740.6

7

80.2 60.7 55.7

154.2 172.7124.9

12.5 13.2

13.1

18.5 19.9

13.8

0

100

200

300

49.5 42.952.9

107.7

80.4

27.0114.0

72.0 49.5

0

20

40

60

80

100

120

10/3 10/309/309/308/3 08/3

264.7 265.2

76.5

114.9

Inventories Interest-bearing Debt and Cash & Time Deposit

Bonds Debt Cash & timedeposit

Billions of yenBillions of yen

207.0

ImagingCompany

PrecisionEquipmentCompany

InstrumentsCompany

Other Businesses

102.4

8

InventoriesInterest-bearing Debt and Cash & Time Deposit

Cash Flow

83.2

120.8

10.1

103.5

-21.9

-49.8 -44.5 -47.1

61.371.0

-34.4

56.4

-60

-40

-20

0

20

40

60

80

100

120

140

07/3 08/3 09/3 10/3

Investing Activities Free Cash FlowOperating Activities

Billions of yen

9

Summary for the Year Ended March 31, 2010

Operating Income secured in the black in the 2nd Half.Revenue decreased and deficit recorded in incomes due to stagnant market, Yen appreciation as well as extra write-down of inventory in 2Q in the Precision Equipment business.

Precision Equipment Company- Slow sales due to stagnant market of both IC and LCD steppers and scanners.- Implementation of structural reform such as reorganization of manufacturing and servicing

subsidiaries and inventory reexamination.

Imaging Company- Lower net sales than the previous year due to Yen appreciation despite sales volume

increase of all products groups.- Higher operating income compared to the previous year due to various measures like

expense squeezing, cost down by procurement reform and extension of overseas procurement.

Instruments Company- Acquisition and integration of Metris NV (currently Nikon Metrology NV) as a strategic step

for a great leap of measuring instrument business.

Cash dividend per share of common stock:4 yen for the 2nd Half (8 yen for an entire year)

10




Agenda

880.0 +94.5

5.9%

5.7%

3.4%

Net SalesNet Sales


Ordinary IncomeOrdinary Income

Net IncomeNet Income

Exchange Rate(yen)US$Euro

Exchange Rate(yen)US$Euro

Estimation for the year ending March 31, 2011

52.0 +65.950.0 +65.330.0 +42.6

90120

-%

93131

上期下期

395.0485.0

7.544.5

上期下期

7.043.0

4.026.0

9690

133129

10/3Actual10/3

Actual1H2H

1H2H

11/3Estimation

11/3Estimation

1H2H

1H2H ChangeChange

785.5

- 13.9

- 15.3

- 12.6

368.1417.4

- 19.55.6

- 22.37.0

- 17.75.1

-%

-%

FCFFCF 50.0 - 6.456.4 15.640.8

Estimating turnaround in the black in full year thanks to significant improvement of Precision Equipment business with continuously steady Imaging business.

Billions of yen

% vs Net Sales

% vs Net Sales

% vs Net Sales

Financial Impact for Net Sales

Financial Impact for Operating Income

est. – 12.0

est. – 30.0

11

10/3

Actual

10/3

Actual

Net SalesNet Sales







Market Scale


Market Scale

1H2H

1H2H

11/3

Estimation

11/3

Estimation1H2H

1H2H

210.0

3.0

48/22 units

58 units

est. 200 units

80.0130.0- 8.011.017/9

31/132434


Market Scale


Market Scaleest. 110 units

1.4%

Estimation for Precision Equipment Company

Estimating turnaround in the black thanks to the market recovery and reduction of fixed cost by structural reform and also there will be no extra expense like write-down of inventory of the previous year.

150.1

- 58.6

36/13 units

45 units

112 units

66.383.8

- 44.0- 14.618/418/91629

74 units

-%

Billions of yen

% vs Net Sales

12

Estimation for Precision Equipment Company

4

12

1 2

15

27

167

0

10

20

30

40

50

60

10/3 11/3est.

21

6

19

33

19

5

0

10

20

30

40

50

60

Units Units

45

36

48

58

IC Steppers & Scanners Sales by Technology

LCD Steppers & Scanners Sales by Generation

i-line

KrF

ArF

ArFimmersion

～4G

5G/6G

7G~

10/3 11/3est.

13

10/3

Actual

10/3

Actual

Net SalesNet Sales




Compact DSCCompact DSC

SLR-DSCMarket ScaleSLR-DSC

Market Scale

1H2H

1H2H

11/3

Estimation

11/3

Estimation1H2H

1H2H

12,000IL

Market ScaleIL

Market Scale 20,000

Estimation for Imaging Company



590.0

52.0

4,200

12,500

280.0310.0

20.032.0

1,9002,300

5,7006,800

6,150 2,8003,350

8.8%

C-DSCMarket Scale

C-DSCMarket Scale 105,000

Expecting steady growth of our sales volume and market volume of SLR-DSC and IL. We plan to secure the same level of profit as the previous year even under further appreciation of Yen.

10,88017,720

569.5

52.1

3,670

11,510

275.3294.2

26.525.6

1,6602,010

5,1306,380

5,450 2,4503,000

9.1%

102,740

% vs Net Sales

14

Cameras & Lenses(1,000 of units sold)

Billions of yen

0

100

200

300

400

500

600

10/3 11/3 est.

41%

24%

10%

25%

40%

27%

8%

25%

Sales value ratio by Product

Billions of yen

C-DSC

SLR-DSC

I/L

Others

Estimation for Imaging Company

15

0

20

40

60

10/3 11/3 est.

Planning to increase in Net Sales and reduction of loss in Operating Income without no extra integration expense as in the previous year.

Expecting considerable recovery to continue in Industrial equipment business in 2H, Operating loss will improve near to break-even.

10/3

Actual

10/3

Actual

Net SalesNet Sales


1H2H

1H2H

11/3

Estimation

11/3

Estimation1H2H

1H2H

63%

16%

18%

3%

55%

14%

26%

5%

Estimation for Instruments Company

45.1

- 9.3 - 2.6- 6.7-%

17.827.3 60.0

- 5.5 - 5.0- 0.5-%

25.035.0

% vs Net Sales

Billions of yen

Industrial Microscopes

Semiconductor Inspection Equipment

MeasuringInstruments

BiologicalMicroscopes

16

Estimation for Capital Expenditure, Depreciation and R&D

37.5

33.0

43.539.8

30.4

22.625.7

32.936.0

36.0

0

10

20

30

40

50Capital Expenditure

Depreciation

47.2

58.461.5 60.3

57.0

7.7

7.0

6.15.7

6.5

0

10

20

30

40

50

60

70

5%

6%

7%

8%

9%

10%R&D

Ratio of R&D

07/3 07/308/3 08/309/3 09/310/3 10/3

* After 09/3 : Include the amount of acquisition of Lease asset by change of Accounting Standard for Lease Transactions

11/3est.

11/3est.

[Capital Expenditure & Depreciation]Billions of yen Billions of yen

[R&D]

17

Summary of Estimation for the Year Ending March 31, 2011

Market environment: Change from global recession to recovery as a basic tone with difference existing depending on the industries and regions.Exchange rate of Yen: Continuation of high yen value.

Further enhancement of our main business competitiveness and profitability to secure return to the growth track.Precision Equipment Company- Accomplishment of high performance of “NSR-S620D”, cutting-edge ArF immersion tool as

planned for securing purchase order.- Aggressive marketing of LCD scanners including active Chinese market.

Imaging Company- Establishment of solid profit structure through strengthening procurement and production

system to secure profit under even appreciating Yen.- Development acceleration of new generation digital cameras.- Enhancement of sales, servicing and brand value in the rapidly growing emerging markets.

Instruments Company- Enhancement and expansion of bio-science and industrial instruments businesses.

Estimated cash dividend per share of common stock: 19 yen for a year (5 yen for the 1st Half)Our dividend is decided based on our return policy aiming to total return disposition of 25% or more to shareholders with the following conditions:- Endeavor to enhance competitiveness through investment to development of the business and technology

for future growth.- Stable cash dividend in view of greater importance to shareholders.- Higher reflection of our business performance. 18




Agenda

US$US$

EUROEURO

Exchange Rate

11/3Estimation

Approx. 0.7 Billions of yen

Approx.0.9 Billions of yen

Net Sales Operating Income

90

120

11/3Forecast



Financial Impact fromFluctuation by 1 yenExchange

Rate

19

1H -19.5 7.52H 5.6 44.5

1H -22.3 7.02H 7.0 43.0

1H -17.7 4.02H 5.1 26.0

-2.0

Billons of yen

-1.4

11/3 est.10/3

-13.9 52.0OperatingIncome

-15.3 50.0

-12.6 30.0

-2.3-5.0

-2.018.0

Net Income

OrdinaryIncome

Non-operatingincome / expenses-net

Extra ordinaryincome / expenses-net

Income Taxes

Estimation for the Year Ending March 31, 2011

20

164.9 172.3 156.9

102.4135.4 139.9

174.8

119.4

57.9 59.3

41.0

61.727.3

39.0

30.9

52.9

10.912.2

11.0

10.4 8.29.6

11.8

15.5

4.25.4

4.6

4.2

6.3

5.9

4.54.5

0

100

200

300

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

09/3

Quarterly Net Sales by segment

10/3Instruments Company OthersImaging Company Precision Equipment

Company

Billions of yen

21

23.1 18.9

4.0-6.0

12.5 14.1 17.48.2

6.25.9

-3.5-0.6 -10.1

-33.9

-9.2 -5.3-1.1 -0.2-0.6 -1.1

0.8

0.1 0.4

-0.9-1.6

-1.0

-5.7

0.6

0.80.7

0.8

0.3

-40

-30

-20

-10

0

10

20

30

40

50

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Quarterly Operating Income by segment

09/3 10/3

Imaging CompanyPrecision Equipment Company Instruments Company Others

Billions of yen

22

Documents

Presentation Material of Financial Results for the Year Ended ...Ⅰ．Financial Results for the Year Ended March 31,2010 Ⅱ．Estimation for the Year Ending March 31,2011 Ⅲ．Reference