annual report 2009

REVIEW OF OPERATIONS

GENERAL RESULTS

TO OUR SHAREHOLDERS

IMAGING COMPANY
IMAGING HIGHLIGHTS

PRECISION EQUIPMENT
CORPORATE STRUCTURE

INSTRUMENTS

NIKON INITIATIVES

CORPORATE GOVERNANCE

FIVE-YEAR SUMMARY

RISK MANAGEMENT

FINANCIAL STATEMENTS
 Nikon achieved record-high The Instruments Company achieved expect the digital camera market to
sales and earnings in the year growth in biological microscopes and continue to expand, but remained
ended March 2008. We will con- measuring instruments, but sales of concerned over economic slowdown
tinue to bolster our technolog- industrial instruments such as semi- and lagging consumption due to the
ical capabilities, manufacturing
as well asconductor
the observationinspection
of live cells.equipment
Besides seekingandto impact of theProducts,
in Imaging subprime loan
we will work crisis in
to strengthen com-
and sales to f urther establish a
“Strong Nikon.”
industrial
aggressively microscopes
develop highly creative new were sluggish
products that the United
petitivenessStates
in theand the earthquake
bioscience field in Instruments whil
We focused on two main reform as companies restrained capital invest- in China, and so anticipate sluggish
match the needs of the market and the times, Nikon aggressively channeling funds into R&D for new busi-
measures: Rapid responsesas to well asments. The year
the observation of live ended March
cells. Besides 2008
seeking to market growth
in Imaging and increasingly
Products, we will work tofiercestrengthen com-
will expand business and boost profitability by further nesses and elemental technologies.
changes in the business envi- marked the 90th anniversary
aggressively develop highly creative new products that of Nikon, competition. Business conditions
petitiveness in the bioscience field in Instruments are while
ronment, and collaborative strengthening
de- and was salesaand marketing
year in which competencies.
we worked to- becoming harsher in the year end-
match the needs of the market and the times, Nikon aggressively channeling funds into R&D for new busi-
velopment of products by the Nikonwardis alsorealizing
proactive inour newly
its stance formulated
towards enter- Bolster
ing March 2009, corporate
but we aregovernanceseeking
design and marketing depart- will expand business and boost profi tability by further nesses and elemental technologies.
ing newmanagement
markets in whichvision, “Ourour
we can apply Aspiration:
technical to realize further globalization
Amid continued increases in revenue
of the business environ-
ments. We achieved record-high Meeting
strengthening sales andneeds.
marketingExceeding
competencies. expecta- and earnings through greater product
Representative Director, advantages. For example, we are presently planning to
levels of sales for the fifth con- ment, increasing management efficiency and transpar-
President, CEO and COO secutive fiscal year, operating
Nikon tions.” Specific
is also proactive in its initiatives
stance towards were
enter-the Bolster corporate
competitiveness governance
and cost reductions.
advancecore into the field of industrial
measures of the consumption
medium mate-
term Nikon ency, andretain
will strengthening
a sense theof
monitoring
alertness and supervisio
income for the third year, ingand new markets in which we can apply our technical Amid continued globalization of the business environ-
rials withmanagement
our glass materials plan: (1) strengthen the
and component related in itsofbusiness and organizational
business execution op- stable
are integral to achieving
net income for the fourth year.
advantages. For example, we are presently planning to ment, increasing management efficiency and transpar-
competitiveness
businesses. This field is expected of core businesses
to contribute by
erations,
to higher, corporateseeking
growth quick
over theand accurate
medium- to long-term. At
Business Initiatives and Results foradvance
the into the fieldsuperiority
securing of industrial consumption
in mate-
state-of-the-art ency, and strengthening
responses to the the monitoring
drastically chang- and supervision
more stable profits for the Nikon Group. Nikon, corporate governance is viewed as a top manag
Year Ended March 2008 rials with technologies
our glass materialsand developing
and component relatedhigh-
ingofbusiness environment,
business execution as toit achieving
are integral works stable
ment priority, and as such, we are working hard to crea
We would like to begin with an over- value-added products; (2)
businesses. This field is expected to contribute to higher, boost cost-
to establish a “Strong Nikon”
corporate growth over the medium- to long-term.able to At
view of developments in our three Initiatives
competitivenessto shorten through manufactur- produceand enhance crucial organizational
sustainable growth. controls and system
more stable profits for the Nikon Group. Nikon, corporate governance is viewed as a top manage
main internal companies. In IC step- development
ing innovations; lead-time and (3) and create new Specifically, we will
Initiatives taken move forward
to strengthen corporate withgovernance ar
ment priority, and as such, we are working hard to creat
pers and scanners, the Precision reduce manufacturing
businesses, including the costs glass busi- the outlined
principles on pagesof 22-23
the medium
of this Annual termReport.
Equipment Company began full-scale Initiatives ness. to shorten
We also made further progress and enhance crucial
management plan: organizational controls and systems.
One of the key factors behind greater-than-expected Finally, as members of top management, it is our du
Representative Director, shipments of the latest cutting-edge development lead-time and
with establishing internal controls, and Strengthen
Initiatives taken the competitiveness
to strengthen of
corporate governance are
profitability in Precision Equipment and Imaging to relay the fact that Nikon is now undergoing immens
model of ArF immersion scanner reducein based on the Nikon Corporate
manufacturing costs Social core businesses by securing superior-
outlined on pages 22-23 of this Annual Report.
Executive Vice President and CFO Japan and overseas, and introduced ProductsResponsibility
was the shortening of development
Charter formulatedlead-time.
ity inchange.
in Another key technologies
state-of-the-art objective of the medium
and term ma
One of the key factors behind greater-than-expected Finally, as members of top management, it is our dut
im- April
the i-line stepper with signifi cantlyPromoting 2007,
simplifi conducted
ed design and module highly transpar-
standardiza- developing
agement plan high-value-added
is to foster a free and prod- open-minded corp
proved precision and throughput.profi Unit tability
entin management
tion enabled
Precision Equipment and Imaging CSR.
emphasizing
us to boost profit-earning capability in
to relay the fact that Nikon is now undergoing
ucts.rate culture so that motivation levels are optimum immense
and
sales of LCD steppers and scanners Products As was atheresult,
shorteningwe of reported
development record-high
lead-time. Create and foster
change. Another new businesses
key objective of the medium term man
Precision Equipment, while we were successful in drasti- opinions of all employees, including young engineers, a
year levels
were down considerably from thePromoting for both revenue
simplified design and module standardiza-and earnings. becoming
agement plan newispillars
to fosterthat support
a free our
and open-minded corpo
cally cutting development lead-time for digital cameras more readily heard at the management level.
ended March 2007 as panel display tion enabled ussales
Net to boost rose
profi16.2%
t-earningfrom the
capability in year
group through appropriate investment
rate culture so that motivation levels are optimum and th
manufacturers scaled back investment in Imagingended Products.March 2007 we
As a result, toare¥955,792
well on themil-of our resources.
way Although we achieved record profits in the year end
Precision Equipment, while we were successful in drasti- opinions of all employees, including young engineers, ar
in reaction to the year ended March lion, with
to establishing operating
a structure income
that allows up 32.5%
swift response to Innovate
March 2006, this manufacturing
marks but one step towardsand our goal
2007. cally cutting
to development
¥135,169 lead-time
million, for
and digital
net cameras
income more readily
strengthen heard
sales at the management level.
capabilities.
fast-changing market needs. new innovation. Numerous issues remain if we are to lif
However, with the positive response in Imaging increasing
Products. As37.7% a result, towe ¥75,484
are well onmillion.
the way Increase
Althoughcash weflow
achievedthrough improve-
record profi ts in the year ende
Moving ahead, we will strive to further reduce manu- the bar even further, but with the collective and unified
to the leadingedge models of IC scan-to establishing a structure that allows swift responsealso
Nikon’s financial position was ment
to of asset efficiency.
March 2006, this marks but one step towards our goal o
ners the Precision Equipment Com- facturingstrengthened
costs through theby inauguration
a positive of anet
company-
cash
In the efforts of allyears
three management through and employees,
the yearwe are confi
fast-changing market needs. new innovation. Numerous issues remain if we are to lift
pany posted sales on par with the year position
wide project that aims (cash
to trimandboth cash equivalents
lead-time ending
and cost. dent March
we can meet 2011, thewe plan toofcarry
expectations shareholders and
Moving ahead, we will strive to further reduce manu- the bar even further, but with the collective and unified
ended March 2007, and managedActivities to less suchinterest-bearing
as these are expected debt)
to helpatexpand
the end out capital
investors. investments totaling ¥160
hold profi t decline to a minimum.facturing
The costs
of the through
Nikon’s profitability.
year the inauguration
ended March of a company-
2008, revers- effortsand
billion of all R&D
management spendingand employees,
totaling
We look forward to your continued guidance and su
we are confi-
Imaging Company strengthened wide ingthat
itsproject theaimsnegative position
to trim both of the
lead-time and previ-¥220
cost. dentbillion
we canto meetproduce next-genera-
the expectations of shareholders and
port as we strive to achieve the objectives we have set.
product lineup with the introduction ous fiscal year.
Activities such as these are expected to help expand tioninvestors.
products, develop core and basic
of the D3 and D300 flagship models, Increase capital investment and technologies, and improve productiv-
Forecast
Nikon’s profi tability. for the Year Ending March We look forward to your continued guidance and sup
and the entry-level D60 model of digi- R&D 2009, investment to drive
and Progress of the Medium
ity.
port as we strive to achieve the objectives we have set.
tal SLR (single-lens reflex) cameras, future Term growth
Management Plan
successfully opening new markets.Increase
We
One of the
capital investment and
focus points of the medium term manage-
Thank you for your continued support
We expect conditions for IC steppers of Nikon.
also made a strong market introduc- R&D investment to drive
tion for new models of compact digital ment plan and is toscanners
increase capital to be difficult
investment and during
R&D Michio Kariya
futurethegrowth President, Member of the Board,
cameras, recording increases in sales. investment. Inyear ending period
the three-year March that2009 due
the plan to
cov- Chief Executive Officer & Chief Operating Officer
One of the focus points
restraints onof capital
the medium term manage-
investment, but
Camera sales exceeded market ers, ex-Nikon plans to raise capital investment by 20%
ment plananticipate
is to increaseacapital recovery
investmentfor andLCD R&D step- Michio Kariya
pansion as a result, and the Imaging and R&D investment by 60% compared with the prior President, Member of the Board,
sales pers
Company posted record levels of investment. In theand scanners
three-year period duethatto thegrowth
plan cov- in Chief Executive Officer & Chief Operating Officer
three years.
the Apartmarket from forinvestment in the development
LCD televisions. We
and operating income. ers, Nikon plans to raise capital investment by 20%
of next-generation steppers and scanners in Precision Ichiro Terato
and R&D investment by 60% compared with the prior Executive Vice President,
Equipment, and of second-generation digital cameras Member of the Board & Chief Financial Officer
three years. Apart from investment in the development
 IM AGING
Reliability and operability

The D3 goes the extra mile

Magnesium alloy body to protect against
Countermeasures againstinvasive
dust, moisture and electromagnetic Twin CF card slots Electronic Virtual Horizon
Rugged, durable and precise magnesium alloy construction protects the moisture, dust and even
interference Now you can use two CF cards simultaneously for a number of func- The D3’s super-density color LCD monitor, teamed with Nikon’s innova-
D3’s incomparable technologies and its ability to perform in demanding electromagnetic
The D3 goes the extra mileinterfer-
to protect against invasive moisture, dust tions: recording two full CF cards of data; recording the same data tive Electronic Virtual Horizon delivers instant and accurate confirmation
real-world conditions. An amazingly strong-yet-lightweight magnesium ence.
and A comprehensive
even electromagnetic interference. A comprehensive series of simultaneously onto two cards for backup protection; recording RAW of the D3’s position relative to “horizontal level.” You can also level the
alloy is used for the D3's body, exterior cover, chassis, and mirror box, to seriesand
O-rings of other
O-rings and other
specialized seals, combined with additional Nikon and JPEG simultaneously to separate cards; transferring data from one D3 while looking through the viewfinder using the handy analog scale.
assure superb, reliable performance and longer life. specialized
engineering, seals,
keeps combined
you shooting when lesser cameras would fail. card to another.
with additional Nikon engi-
neering, keeps you shoot-
ing when lesser cameras
would fail.

• Lens: AF-S NIKKOR 14-24mm f/2.8G ED • Image quality: 14-bit RAW (NEF) • Exposure: [M] mode, 1/200
second, f/16 • White balance: Auto • Sensitivity: ISO 200 • Picture Control: Standard

lity Chart
1 IX-Nikkor lenses cannot be used. 2 Vibration Reduction (VR) supported with VR lenses.
etting Focus Exposure Metering 3 Spot metering meters selected focus point. 4 The camera’s exposure metering and flash
mode mode system control systems do not work properly when shifting and/or tilting the lens, or when an

Imagine being
S M (with electronic M P A K O aperture other than the maximum aperture is used. 5 Electronic rangefinder cannot be used
with shifting or tilting. 6 Manual exposure mode only. 7 Can be used with AF-S and AF-I

Nikon D3 is more
C rangefinder) S M 3D Color ?
2
lenses only. 8 With maximum effective aperture of f/5.6 or faster; when TC-20E II/TC-20E is
r 3 used with AF-S VR 70-200mm f/2.8G, AF-S VR 300mm f/2.8G, AF-S 300mm f/2.8D II, AF-S VR
✓ ✓ ✓ ✓ ✓ ✓ — ✓
400mm f/2.8G or AF-S 400mm f/2.8D II, or TC-14E II/TC-14E is used with AF-S VR 200-400mm
f/4G, three top and three bottom points among 15 focus points in the center may function as

able to work at
4 5 6 3
f/2.8D — ✓ ✓ — ✓ ✓ — ✓
7 8 8 3
line sensors. 9 When focusing at minimum focus distance with AF 80-200mm f/2.8, AF 35-
rter ✓ ✓ ✓ ✓ ✓ ✓ — ✓ 70mm f/2.8, AF 28-85mm f/3.5-4.5 <New>, or AF 28-85mm f/3.5-4.5 lens at maximum zoom,
9 9 3
in-focus indicator may be displayed when image on matte screen in viewfinder is not in
✓ ✓ ✓ ✓ ✓ — ✓ ✓ focus. Adjust focus manually until image in viewfinder is in focus. 10 With maximum aperture
AF) of f/5.6 or faster. 11 Some lenses cannot be used. 12 Range of rotation for AI 80-200mm f/2.8

ISO
Improved25600, yet
10 3
— ✓ ✓ ✓ ✓ — ✓ ✓ ED tripod mount is limited by camera body. Filters cannot be exchanged while AI 200-400mm

than just another

Two types of information display
f/4 ED is mounted on camera. 13 If maximum aperture is specified using [Non-CPU lens data],

ergonomics
or or 10 13 14 15
12 — ✓ ✓ — ✓ — ✓ ✓ aperture value will be displayed in viewfinder and top control panel. 14 Can be used only if
s lens focal length and maximum aperture are specified using [Non-CPU lens data]. Use spot

choose
to access. That’s from
why all D3 a
16
m f/4 — — — — — or center-weighted metering if desired results are not achieved. 15 For improved precision,

Choose from black letters or white letters, according to lighting conditions, to ensure your information display is legible. The menu is formatted large and
✓ ✓ ✓

Features mean nothing if they’re difficult

keep all the natu-
13 15 specify lens focal length and maximum aperture using [Non-CPU lens data]. 16 Can be used
— — ✓ — ✓ — — ✓
5 17
in manual exposure modes at shutter speeds slower than 1/125 s. 17 Exposure determined by
— ✓ ✓ — ✓ — — ✓ presetting lens aperture. In aperture-priority auto exposure mode, preset aperture using lens
18
— ✓
8
✓ — ✓
13
— ✓
14
✓
15
aperture ring before performing AE lock or shifting lens. In manual exposure mode, preset
aperture using lens aperture ring and determine exposure before shifting lens. 18 Exposure
buttons and dials have ideal sizes and clear functions. The layout shares clear for easy recognition. You can also set the camera so the color of letters switches automatically, depending on the brightness of the large, 3.0-inch
as Nikon’sselection ofD-SLRs,
cap-
ng 8 20
compensation required when used with AI 28-85mm f/3.5-4.5, AI 35-105mm f/3.5-4.5, AI

ral tonal grada-

— ✓ ✓ — ✓ — — ✓

LCD monitor.

new camera, it’s

the same logical consistency previous professional
35-135mm f/3.5-4.5, or AF-S 80-200mm f/2.8D. See teleconverter manual for details. 19
8 13
Requires PK-12 or PK-13 auto extension ring. PB-6D may be required depending on camera
— ✓ ✓ — ✓ — — ✓ orientation. 20 Use preset aperture. In aperture-priority auto exposure mode, set aperture
; PN-11) using focusing attachment before determining exposure and taking photograph.

along with further improvements, such as Command Dials with a

37
tion
5-degree you
inclinationneed in using your index finger. such
for natural rotation ture formats,
the low-sensitivity as the new FX
an innovative way range, as well. format for shoot-
The D3 tackles ing at 9 fps, or
of approaching real-world shoot- the ultra-versa-
...Nikon’s original FX-format CMOS image sensor with 36.0 (H) x 23.9 (V) mm image approx. 11 fps [DX format (24 x 16)] *1......Newly employed Picture Control System
size; 12.1 effective megapixels......Compatible with three image-sensor formats – FX enables creation of desired picture with preferred tones......Accurate focal-plane con-
ing scenarios like tile DX format at
photography
format (36 x 24), 5:4 (30 x 24) and DX format (24 x 16)......Sensitivity range ISO 200 trast AF*2 available with built-in Liveview mode......Wireless Transmitter WT-4*3 (op-
to 6400 at normal setting for exceptionally high-quality images; can be set to ISO- tional) realizes wireless connection of cameras with a PC, enabling thumbnail display
n o t h i n g t h a t ’s up to 11 fps (5.1 equivalent 25,600......Incorporates Nikon’s original EXPEED digital image process- of images taken with up to five of them, and downloading of images selected......
come before – megapixels), with ing concept......Nikon’s original Scene Recognition system, utilizing the 1,005-pixel CF card double slot accepts two CF cards......Quick response with approx. 0.12 sec.
consistent frame- RGB sensor, greatly improves autofocus, auto exposure and auto white balance startup time and 37 ms Shutter-release time lag......Viewfinder with approx. 100%
advance speed performance......New 51-point autofocus system features 15 cross-type sensors that frame coverage and approx. 0.7x magnification in FX format......High-definition
maximize the potential of lenses with apertures as small as f/5.6......High-speed con- (920,000 dots), 170˚ viewing angle, 3-inch VGA LCD monitor with tempered glass......
100% frame coverage at every aperture 3-inch, 920,000-dot super-density, 170-degree color LCD monitor Function button Long-life battery
Active D-Lighting optimizes tone reproduction in both shadows and highlights...
tinuous
The D3’s large, super-density color LCD monitor delivers bright, crisp shooting at approx. 9 frames per second [FX format (36 x 24)/5:4 (30 x 24)]/
The D3 uses the same EN-EL4 or EN-EL4a rechargeable batteries that
The D3’s large prism mirror gives you the setting.
FX-format visual advantage
when you shoot. Not only is the viewfinder image brighter, but the image playback, with enlargement up to 27x (Large-size images in FX
Designate frequently used features to the Function Button. Up to 13
functions are available. You can also do the same with the Preview have been field-proven over many years with the D2 series D-SLRs.
finder screen is also carefully designed for you to sense focus more format), making on-the-spot image confirmation easier and more pre- Button and the AF/AE Lock Button. What’s more, because the D3’s power consumption and power manage-
intuitively, be it manual or autofocus. cise. And the 170-degree wide-angle viewing makes image review and ment systems have been engineered for greater operating efficiency, you
Live View modes even more useful in challenging conditions. can expect even longer battery life – a welcome bonus for professionals.
28 29
 Review of the Year Ended March 2008 share of Net Sales to strengthen the Nikon brand with fl
Sales of digital SLR cameras grew aship models, while also broadening
steadily as the result of lineup expan- the market and new customers with
sion. New models included the D3, the greater sales of entry-level models.
Nikon FX-format flagship model with Nikon is expanding in both directions,
the in-house developed large CMOS maintaining its position as the leading
image sensor, providing superior pic- imaging company. We plan to continue
ture quality, wide sensitivity range and developing more attractive products,
high-speed performance; the D300,
61,3% and further strengthen our lineup.
Compact Digital Camera Lineup
Autumn/Winter 2008

the top-of-the-line Nikon DX-format ¥ 586 billion Establishing a Brand Image for OO-
model with an even more advanced LPIX Compact Digital Cameras
features and functions; and the D60,
Brand awareness for COOLPIX still
offering plenty of features such as ad-
lags behind that for digital SLR cam-
vanced built-in dust reduction tech-
eras. One of the issues involved in in-
nologies and a comprehensive set of Operating Income*
creasing this awareness is generating
creative options. Sales of existing prod-
mln¥6 ,000 a premium for the COOLPIX brand.
ucts also rose considerably, including
the mid-range model D80, the entry-
To accomplish this requires novel and Coolpix
5,000 5,123 innovative ideas for each product cat- Quick response
level model D40, and its sister model
egory, and the development of unique ultra-compact
D40X. Sales of interchangeable lenses
features. Nikon will continue to devel-
At the
4,085 4,081
were also steady with sales of digital 4,000 design elegance
op new products with advanced basic
SLR camera kits and high-priced lens-
performance and original functions, 75 years of
heart of es. Production figures for NIKKOR SLR
interchangeable lenses surpassed 40
3,000
such as models equipped with wireless superior lens
LAN (Wi-Fi) feature to link the camera
optics = Nikkor
the million in July 2007. For the COOLPIX
series, Nikon aggressively launched Net Sales*
2,000
to the Internet.

image Focus your imagination with powerful,

easy-to-use tools
a total of 17 new models on the mar-
ket, including the COOLPIX S510 with
1,000 Accelerating Product Development
Nikon creates project teams for digi-
mln¥70,000
the world’s fastest power-up response 0 tal camera planning and development
time and smallest body.*2 06 07 08
Capture NX 2/Capture NX 2 Upgrade

60,000 59,252 that cut across the design, marketing

59,043
Maintaining Our Position as the Lead- * Years ended March 31 and production departments. We cate-
53,280
ing Company for Digital SLR Cameras 50,000 gorize customers throughout the world
into detailed segments, drawing on
Nikon had a 40% share worldwide of 40,000 sales data and customer surveys from
shipments of digital SLR cameras dur-
Control Points make

around the world to develop products

Capture NX 2 intuitive to operate

ing the year ended March 2008. We

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recognize that this is the result of our

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efforts to meet customer expectations 20,000

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to deal with selection tools, layers or lengthy training.

tuitive photo enhancements

with a wide variety of products, from share of Operating Income
2 3

which are immediately vis- 10,000

ible on your monitor. Simply high-end to entry-level models. Helping People Enjoy Pictures More
place the Control Point on
the area that you want to The entry-level model D40, launched 0 The way people enjoy images and
edit and U Point Technology
will analyze color elements
in December 2006, was the trigger for 06 07 08 photography has changed radically
such as hue, saturation and Nikon’s gain in momentum, as it pro- with the transition from film to digital,
brightness, as well as recog- * Years ended March 31
nize similar areas where an vides more people to enjoy photogra- technological advancements such as
edit would best be applied. phy with digital SLR cameras. The D40, the Internet and large-screen flat-pan-
with its affordable price, has helped el televisions, and shifts in lifestyles.
expand the market due to its popular- Nikon has continued to develop prod-
ity among those who use digital SLR
62,2% ucts aimed at allowing more people
cameras for the first time. In Novem- ¥ 84 billion to easily take beautiful photos.
ber 2007, Nikon launched the D3, the
flagship model of the Nikon FX-format
camera, and D300, the flagship mod-
el of the Nikon DX-format camera.
The “full lineup” product strategy is
90 TS-E
f/4
1/320s
ISO 800
Nikon D3
400mm
f/5.6
1.0s
ISO 250
Nikon D200
80-400mm VR lens
 INSTRUMENTS
New
infinity
corrected
microscope
to provide
outstanding
optical The dedicated plan series

performance 4x, 10x, 20x, 40x, 60x, 100x

(Oil) objective lenses fea-
ture superior image flatness.
...Optical system...CFI optical system......
Magnification...40–1500x......Illumination...6V-20W halo-

with elegant Chromatic aberration and

field curvature are corrected
over the entire viewfield.
gen lamp, FL (field lens) unit, lamp changeable by re-
moving the field lens unit......Coarse and fine focusing...
Coaxial coarse/fine focusing with cross roller guide in-
ergonomic corporated, 22mm coarse/fine focusing range...Coarse
motion: 37.7mm/rotation, Fine motion: 0.2mm/rota-

touches. tion with 2μm scale increments, Coarse motion torque

adjustable......Eyepiece tube...E2-TB binocular tube
(inclination: 30°, 360° rotatable Siedentopf-type, inter-
pupillary distance: 47–75mm)...E2-TF trinocular tube F
(2-way, inclination: 30°, 360° rotatable Siedentopf-type,
interpupillary distance: 47–75mm)......Eyepiece lens...
E1-CFI 10x (F.O.V.: 18mm), CFI E 15x (F.O.V.: 12mm) (with
rubber eye guard)......Condenser...Abbe condenser, NA
1.25 (aperture diaphragm with position guide mark-
ing for respective objectives)...33mm-diameter filters
attachable (including standard blue filter)......Nose-
piece...Quadruple click-stop, revolving mechanism with
The dedicated Plan series objectives yield flat and
multiple ball bearings, elastic nosepiece grip-ring......
sharp images right up to the periphery of the view- Dedicated objectives...CFI BE Plan Achromat 4x (NA
field. With phase contrast and darkfield in addition 0.1/W.D. 25mm)...10x (NA 0.25/W.D. 6.7mm)...20x (NA
0.4/W.D. 3.7mm)...40x (NA 0.65/W.D. 0.6mm)...60x (NA
to brightfield observations possible as well as image 0.8/W.D. 0.24mm)...100x (NA 1.25/W.D. 0.14mm)...DL
capture, this compact model is the perfect choice for 10x (NA 0.25/W.D. 6.7)...DL 40x (NA 0.65/W.D. 0.6)...DL
educational usage and clinical laboratory inspections. 100x (NA 1.25/W.D. 0.14)......Stage...Double-plate rect-
angular mechanical stage, stage size: 155 (W) x 134 (D)
mm, removal slide holder, travel area: 76 (W) x 40 (D)
mm, vernier provided......Substage...Adjustable verti-
cal condenser movement range: 10mm......Optional
accessories...Phase contrast attachment (dedicated
abbe condenser, sliders, objectives (10x, 40x, 100x), GIF
filter, phase centering telescope), object marker, dark-
field ring unit, mirror unit, cord hanger, storage case......
Power...consumption 50W......Weight...Approx. 6.5kg...
 Review of the Year Ended March 2008 Nikon offers the BioStation CT (Cell
share of Net Sales
In the bioscience business, for fields Tracking), cell culture observation sys-
working with live cells Nikon intro- tems that simplifies stable cultivation
duced system products including the and quality control for live cells, as well
inverted research microscope ECLIPSE as the BioStation IM (cell IMaging), a
Ti, and the high-speed, high-resolu- time-lapse imaging system that takes
tion imaging confocal microscope A1. images of live cells at fixed intervals,
We also worked to expand sales of and combines them to allow for ob-
the BioStation series of integrated cell 6,2% servation of the cell as a moving im-
culture observation systems. In the in- age. Both of these systems facilitate Pis del ipsusci
¥ 59 billion
dustrial instruments business, we con- highly reliable data management. Up dunt dolortincie
centrated on marketing of the NEXIV to now, cultivated cells could be dam- ssecte lor si tat
series of CNC video measuring sys- aged when removed from the incuba-
tems and the new AMI-3400 model of tor for observation, due to the change
automatic macro inspection systems, in the environment at the observation Ommy nos
Close and announced the APM-3000 series
Operating Income* stage. The BioStation CT, because it
allows for observation for cultivation
augiat. Dunt
of automated pattern profile monitor- lor si tat. Modit
as you The main strengths of the
ing systems. mln¥ 100,000 83,974 of numerous samples without altering
the environment, makes possible effi- inim. Dunt lor si
Instruments Company are

can the control, image process-

ing and optical technolo-
gies Nikon has acquired
Focus on Sales of High-End
Microscopes 80,000 cient data acquisition over extended
periods. It also has a remote obser-
get over many years. Building
on a foundation of more
than eight decades of mi-
Nikon offers microscopes for a wide
range of uses, including educational, 60,000
vation feature, allowing for operation
and observation via a networked com-
croscope production, the In-
struments Company applies medical and industrial applications. In puter. Nikon will focus on expanding
the bioscience field, live cell observa- 45,678
40,000
34,369
business fields for the promising BioS-
tion is a high-visibility area of research, tation series.
for which Nikon has developed several Net Sales* Pis del ipsusci
20,000 Intense Development of Industrial
high-end products. dunt dolortincie
Products to Open New Markets
We are focused particularly on ex- ssecte lor si tat
mln¥700,000 0 In the industrial instruments business,
panding sales of the inverted research
microscope ECLIPSE Ti and the con- 06 07 08 Nikon has on the automotive industry
600,000
focal microscope A1, enhancing the 586,147 * Years ended March 31 in order to strengthen our earnings
value of our microscope brand. Rec- 500,000 base and broaden our business scale,
ognition of Nikon as a premium brand 448,825 and striving to expand sales of the
415,686
is rising rapidly, and we are looking to 400,000 NEXIV series of CNC video measur-
increase our share of high-end prod- ing systems for use in various inspec-
300,000 tion processes in automotive industry.
ucts in major markets throughout the
world. We will also develop systems Nikon’s measuring systems are non-
200,000
that combine various highend devices contact, and are distinctive in their abil-
the technology developed
share of Operating Income ity to measure height as well as surface
by Nikon, such as precision to provide substantial added value, 100,000
control that brings the high-
speed, moving stage to a and enhance profitability. Nikon’s area. We are currently developing in-
standstill with exceptional
technology for the high-profile field of 0 struments to measure automotive and
precision to produce the
products as IC steppers and live cell observation is unrivaled. Our
06 07 08 other components in short periods of
scanners, and image pro-
cessing derived from digital products combine superior operabil- * Years ended March 31 time. These devices utilize optical sen-
cameras.
ity with short image data acquisition sor and image processing technology
times, and the ability to stably acquire to determine whether components
data over long periods. We also offer have been produced to the exact pre-
the Perfect Focus System to automati- 3% cision of the design. Such high speed
cally correct the focus drift of a sample and precision in component inspection
during extended observation, freeing ¥4 billion will allow Nikon to make strong entries
researchers from previously unavoid- into fields other than automotive, and
able long hours of data acquisition. achieve significant earnings growth.
Rising Demand Anticipated for the
Highly Reliable BioStation Series

Nikon’s CFI optical s

Consolidated Statements of Income Selling, General and Administrative Expenses

Thousands of Thousands of
Millions of Yen Millions of Yen
U.S. dollars U.S. dollars
Net sales ¥ 955,792 ¥ 822,813 $ 9,539,790 Net sales ¥ 955,792 ¥ 822,813 $ 9,539,790
Cost of sales 551,551 494,663 5,505,047 Cost of sales 551,551 494,663 5,505,047
Gross profit 404,241 328,150 4,034,743 Gross profit 404,241 328,150 4,034,743
Selling, general and administrative expenses 269,072 226,143 2,685,613 Selling, general and administrative expenses 269,072 226,143 2,685,613
Operating income 135,169 102,007 1,349,130 Operating income 135,169 102,007 1,349,130
Other income (expenses) Other income (expenses)
Interest and dividend income 2,910 1,724 29,042 Interest and dividend income 2,910 1,724 29,042
Interest expense (1,439) (1,633) (14,365) Interest expense (1,439) (1,633) (14,365)
Cash discount (4,509) (3,840) (45,001) Cash discount (4,509) (3,840) (45,001)
Royalty income 529 418 5,284 Royalty income 529 418 5,284
Write-down of inventories (5,450) (1,747) (54,397) Write-down of inventories (5,450) (1,747) (54,397)
Loss on disposals of inventories (5,304) (6,998) (52,936) Loss on disposals of inventories (5,304) (6,998) (52,936)
Loss on disposals of property, plant and equipment (923) (804) (9,208) Loss on disposals of property, plant and equipment (923) (804) (9,208)

Loss on impairment of fixed assets (264) (2,634) Loss on impairment of fixed assets (264) (2,634)
Loss on sales investment securities (94) (938) Loss on sales investment securities (94) (938)
Gain on sales of property, plant and equipment 179 825 1,789 Gain on sales of property, plant and equipment 179 825 1,789
Gain on sales of investment securities 1,635 24 16,314 Gain on sales of investment securities 1,635 24 16,314
Gain on transfer of investments in affiliate 67 Gain on transfer of investments in affiliate 67
Environmental expenses (894) (8,925) Environmental expenses (894) (8,925)
Loss on restructuring of business (1,384) (1,847) (13,812) Loss on restructuring of business (1,384) (1,847) (13,812)
Equity in earnings of unconsolidated subsidiaries 1,309 1,541 13,062 Equity in earnings of unconsolidated subsidiaries 1,309 1,541 13,062
and associated companies and associated companies
Other-net (4,766) (1,924) (47,578) Other-net (4,766) (1,924) (47,578)
Other expenses-net (18,465) (14,194) (184,303) Other expenses-net (18,465) (14,194) (184,303)
Income before income taxes and minority interests 116,704 87,813 1,164,827 Income before income taxes and minority interests 116,704 87,813 1,164,827
Income taxes (Note 12) Income taxes (Note 12)
Current 47,750 34,128 476,601 Current 47,750 34,128 476,601
Deferred (6,530) (1,153) (65,181) Deferred (6,530) (1,153) (65,181)
Total income taxes 41,220 32,975 411,420 Total income taxes 41,220 32,975 411,420
Minority interests 13 ¥ 75,484 ¥ 54,825 $ 753,407 Minority interests 13 ¥ 75,484 ¥ 54,825 $ 753,407
Nikon Corporation
Fuji Bldg., 2-3, Marunouchi 3-chome, Chiyoda-ku
Tokyo 100-8331, Japan
www.nikon.co.jp/eng/ Printed in Czech Republic