Message from the President

We are committed to creating a Sustainable Future with Optical Technologies

Looking Back on the Year Ended March 31, 2018

On July 25, 2017, Nikon celebrated its centennial anniversary.
We have paved the way for the development of pioneering optical technologies ever since our company was first founded with the ambition of establishing this field in Japan.
On this occasion of the company’s 100th anniversary, we set a new management vision in which Nikon will aim to continuously create new values by applying its longstanding technologies to a variety of fields.

"Unlock the future with the power of light"

The new vision "Unlock the future with the power of light" is meant to demonstrate our commitment for the next 100 years to contribute to society using light and grow together with society.
For Nikon, the year ended March 31, 2018 was a year when we devoted ourselves to redefining, reorganizing and restructuring. The Nikon Group positions the time up to the March 2019 as a period of restructuring, and we have been undertaking a number of measures for creating a corporate structure that can enhance corporate value sustainably over the next 100 years. The successful implementation of these measures helped us to achieve operating income that exceeded the target specified in the plan for the year ended March 31, 2018. I believe we are on a good track to building a foundation for our future growth.
Meanwhile, looking around the world in terms of sustainability, we observe increasing attention and interests from society towards companies’ ESG activities, following the Paris Agreement of 2015 and the Sustainable Development Goals (SDGs). Through portfolio-oriented management, the Nikon Group will work to increase management efficiencies, such as ROE, while also undertaking corporate activities with an eye on how we can contribute to a variety of social issues.

Policy on Sustainability

Given this circumstance, the Nikon Group re-examined how it should address sustainability, an area of growing importance for the future. We are determined to renew our commitment to further reinforce the "integration of management and CSR." In light of this commitment, we reviewed CSR priority issues and arrived at the three focus areas: "Contributing to society through business activities," "Responding to environmental issues" and "Strengthening CSR foundation."
"Contributing to society through business activities" means we will aim to broaden our efforts to tackle challenges which society and industry face, mainly by harnessing our long-standing optical technologies.
In the era of rapid evolution of technologies such as AI, robotics and IoT, optical technologies play a role as the "eyes" needed by industry and people in various fields, and the scope of use of these technologies is expected to grow rapidly.
The Nikon Group sees this as a new business opportunity. We have established a structure that will enable us to address a variety of current global issues and global needs through the provision of our optical technologies and other core technologies. Our recent consolidation of optical engineering functions and optical component manufacturing sites which used to be scattered about Group companies and business departments as well as the establishment of the Precision Components & Modules Business Unit in April 2018 are all intended to meet such expectations.
Optical machining systems, which we are currently developing as part of our challenge toward light-driven innovation, have a capability to process various types of machining for myriad materials using lasers, with application of the optical technologies we had elaborated through lithography equipment development. These systems carry with them great potential because they are contact-less, highly precise, and capable of machining shapes that until now have been impossible. We will pursue maximum use of the potential of light by focusing on innovative products and solutions that use these optical technologies.
Another focus area "Responding to environmental issues" stems from our observation of growing risks associated with climate change and resources such as water as well as increasingly tightened regulations on chemical substances. We will continue to focus on environmental management in order to fulfill our Long-term Environmental Vision, which was formulated in 2016 to contribute to more sustainable society, and to achieve our Medium-term Environmental Goals based on this vision.
In order to realize low carbon society for instance, I believe it is important that we strive not only to work on conserving energy within the Group but also to make processes more efficient at the plants of our customers with Nikon’s products and services capitalizing on our strengths.
As for "Strengthening CSR foundation," we will engage stakeholders inside and outside the company to address the core issues of sustainability, including governance, compliance, supply chain, diverse workforce, more productive and efficient work styles, and respect for human rights.
In May 2018, Nikon joined the Responsible Business Alliance (RBA). We hope this will help us to further reinforce our activities for the environment and create a more robust CSR foundation on a global scale. We will continue to abide by the UN Global Compact and strive to ensure that our entire supply chain complies with the RBA Code of Conduct.

Nikon Group's Collective Efforts

I plan to share a variety of messages with all employees of the Nikon Group with a focus on the word "sustainability."
In order for us to promote our activities towards newly defined CSR priority issues and to help the world to become more sustainable using our optical technologies, I will take the lead in getting the message out to Nikon employees around the world about the fundamental meaning of Nikon's existence and what sort of future Nikon envisages with light. It is critical that each one of us understands Nikon’s approach to sustainability and the measures taken based on this. I firmly believe this will enhance employee motivation and become a source of pride.
We will continue our efforts in getting the message through and creating a work environment where all Nikon Group employees can maximize their expertise and creativity and work together in order to live up to the expectations of stakeholders and to fulfill our social responsibilities, including contributing to the SDGs.

Nikon will continue to contribute to the sustainable development of society through its business activities. We must make our utmost effort to crystallize our corporate philosophy "Trustworthiness and Creativity" as a company that brings value to people around the world for the next 100 years. With ceaseless technological innovations taking place around us, we will aim to serve as "new eyes for people and industry" through our optical technologies.
Each and every one of us at the Nikon Group will work as one to "Unlock the future with the power of light." We hope that you will be looking forward to the vision of the future that we have outlined, and we ask for your continued support to realize this vision.

July 2018

Kazuo Ushida

Kazuo Ushida
President
Representative Director
Chairperson of the CSR Committee
Nikon Corporation