Management Policy

In order to achieve sustainable growth of its enterprise value in the medium- to long-term, Nikon Group announced the Medium-Term Management Plan that will run until FY2021 (for the year ending March 31, 2022) in May 2019. Based on that plan, Nikon Group is working on various strategic initiatives to successfully reach its goals.

Nikon's Medium- to Long-Term Goal

Nikon will be a leading company in precision and optics fields, consisting of businesses possessing scale and leadership position within the fields.

Positioning of the Medium-Term Plan

Nikon will invest proactively in preparations for establishing a foundation for growing enterprise value sustainably. To achieve ROE of 8% or higher, Nikon is continuing efforts to enhance enterprise value.

Overview of Strategic Initiative

Through aggressive investment in new areas, Nikon will make "Generating New Core Pillars of Profit" one of the major parts of our strategy. At the same time, Nikon will work to enhance the profitability of our three main existing businesses (Imaging Products, FPD and Semiconductor Lithography).

Generating New Core Pillars of Profit

Medium-Term Management Plan released in 2019

Early acquisition of new engines through aggressive investing in new areas (Establish Material Processing Business)


Material Processing Business

  •  ● Customer applications
    Repair and maintenance of turbine blades, fuel efficiency improvements in aerospace, power generation efficiency improvements in wind power, efficiency improvements in machining tools.
  •  ● Products and solutions
    •  • Additive processing machine: Leverages 3D alignment (Non set up required). Handles a diverse range of metals. Light and compact.
    •  • High-precision removal processing machine: Flat work finishing and feedback fine processing at the sub-micron level.
    •  • Riblet processing service: Achieve energy efficiency gains by performing fine surface processing based on computational fluid dynamics. Begin contract processing service to seed future development of applications.
  •  ● Open innovation and customer development
    Making progress developing customers primarily in the aerospace, energy and electronic equipment fields by leveraging the value chain and increasing our value proposition.

Components Business

Generate earnings with optical components and EUV related components and in the meantime develop new key components while entering a profit-consolidation phase. Achieve even more growth by strengthening delivery of solutions to customer needs, which are becoming more diverse and sophisticated.

Improving Profitability of Existing Businesses

Medium-Term Management Plan released in 2019

Enhance profitability of the three main existing businesses (Imaging Products, FPD, Semiconductor Lithography)

  •  • Imaging Products Business: Stably secure ¥20.0B or more operating profit as a base cash flow for Nikon.
  •  • FPD Lithography Business: Keep leadership position in markets where stable demand is expected in the medium- to long-term.
  •  • Semiconductor Lithography Business: Continue stable generation of cash flow through the profitability-first business strategy.


Imaging Products Business

  •  ● Camera business
    •  • Shift to mirrorless for pro/hobbyist
      Enhance customer satisfaction and the quality of sales by launching flagship bodies, expanding our lineup of distinctive lenses and providing applications that enable new ways of expression through images.
    •  • Invest enough internal and external resources to strengthen differentiation.
  •  ● Develop BtoB businesses: Leverage camera related technologies and IP.
    •  • Provide image experience leveraging robot-controlled automatic tracking, posture analysis technology and the like.
    •  • Image contents business (volumetric video capture, create 3D avatar).
    •  • Monitoring service leveraging image analysis.

Generate profit even at the revenue below ¥150.0B by cutting ¥63.0B out of business costs over the period of the Medium-Term Management Plan.

Precision Equipment Business

  •  ● FPD Lithography Systems
    •  • Pursue greater customer value through higher resolution and productivity improvement. Sustain momentum to grow share in small and mid-sized panels.
  •  ● Semiconductor Lithography Systems
    •  • Leverage business with core customer to strengthen development of other stable customers. Also focus on elemental technology development for future lithography systems.
  •  ● Service business
    •  • Capture demand for maintenance and upgrades by bolstering analysis of use cases and actively pursue refurbishment and re-use business.
  •  ● Measurement and inspection systems
    •  • Integrate inspection systems business into the Industrial Metrology Business to strengthen customer contacts and account strategy. Focus on Litho Booster, which contributes to improved customer yields.

Impaired ¥20.0B and more in fixed assets and inventories by the end of March 2021.

Medium-Term Management Plan released in 2019

Cost Structure Reform

  •  • Cost reduction 3-year total: ¥18.0B
  •  • Optimize supply chain
  •  • Zero-based review of the costs, duties, and functions of management and back-office departments
  •  • Optimize marketing and production systems
  •  • Reform processes and shorten manufacturing lead-time


HQ and procurement costs: Making solid progress in cost reforms aimed at cutting ¥18.0B over the period of the Medium-Term Management Plan.

Enhancing Manufacturing ("Monodzukuri") Foundation

Medium-Term Management Plan released in 2019

Establish "monodzukuri structure" by digital manufacturing.


  •  ● Centralized management of companywide technology strategy. Consolidate development of next-generation businesses.
  •  ● Consolidated companywide optical production, production technology, quality control, procurement functions and personnel development.

Strengthening the management foundation

  •  ● Shifting human resources
    •  • Japan: Reassigned approx. 1,000 people from existing businesses into growth areas.
    •  • Overseas: Optimized approx. 1,500 employees by reorganizing production and sales companies by the end of March 2021.
  •  ● Balance sheet management
    •  • By the end of March 2021, removed from balance sheet more than ¥65.0B in equipment, inventory and goodwill, reducing future risks.
    •  • By the end of March 2021, disposed of more than ¥40.0B in shareholdings and unused real estate.
  •  ● Capital allocation over the mid/long-term
    •  • Focused on stable dividends and a total shareholder returns ratio of 40% or more.
    •  • Sustained direction to invest up to 40% toward establishing a new pillar of earnings.

Enhancing the Corporate Governance Structure

Medium-Term Management Plan released in 2019

Appointment of management, successor training plan.
System where evaluation and monitoring of strategic decision-making can be implemented effectively.


  •  ● Secure transparency: Strengthened effectiveness of nominating committee and successor training plan, evaluated effectiveness of board of directors, expanded performance-based compensation.
  •  ● Board of Directors makeup: Expanded diversity with a focus on quality (one female and two from manufacturing industry were added). Increased external directors to 45% of the board.

Areas of Long-Term Growth

Considering various social issues and Nikon's assets that could be applied to those solutions, we have set "Digital Manufacturing", "Vision Systems/Robotics" and "Healthcare" as areas of long-term growth.

Macro Trends (Social Issues and Needs)

  • Digital transformation
  • Industry 4.0
  • IoT
  • AI
  • Aging
  • Rising medical costs

Existing Assets

  • Optical
  • Precision measurement and manufacturing
  • Image processing
  • Control
  • Customer base
  • Supply chain management

Areas of Long-Term Growth

Digital Manufacturing

Vision Systems/Robotics



  •  ● Digital Manufacturing
    Pursue Material Processing Business, Nikon's unique digital manufacturing.
  •  ● Vision Systems/Robotics
    Develop solutions including sensors, robotics, smart cameras and tracking to support DX and automation in society.
  •  ● Healthcare
    In addition to equipment sales, focus on drug discovery support services, genetic analysis and contract cell manufacturing.

Business expansion scenarios for growth areas in the mid-/long-term

In order to establish new business pillars for Nikon, we will promote business expansion scenarios.

FY2021/3-22/3 FY2023/3-25/3 FY2026/3 and beyond
Customer and product
Scale up businesses Establish new core pillars of Nikon
  • Accelerate launch through M&A and alliances
  • Forge partnerships with pilot customers and begin some joint projects
  • Agile cross-functional development
  • Deploy varieties of customer applications
  • Acquire major customers in each industry to scale up
  • Grow to high profit business making approx. ¥100.0B sales
  • Establish whole growth areas of material processing business, Vision Systems/Robotics related businesses
M&A and alliances
M&A and synergies
Material Processing Business
Vision System/Robotics, high-precision
optical components


2030 numerical targets

  •  ● Reduce emission of greenhouse gases from offices by 70% or more (compared to FY2013)
  •  ● Shift to renewable energy for 30% of power used in business activities (become carbon neutral by 2050)

CSR Priority Issues