August 2026

The final year of our previous Medium-Term Management Plan, fiscal year 2025, resulted in revenue of 677.1 billion yen, down 38.1 billion yen year on year; an operating loss of 112.4 billion yen, compared with operating profit of 2.4 billion yen in the previous fiscal year; and a loss attributable to owners of parent of 86.0 billion yen, compared with profit of 6.1 billion yen in the previous fiscal year. ROE was negative 14.1%.
Revenue declined primarily due to lower sales in the Precision Equipment Business. Operating profit decreased significantly and resulted in a net loss, reflecting the one-time losses totaling 105.6 billion yen across Nikon. These included impairment losses on fixed assets, primarily in the Digital Manufacturing and Precision Equipment Businesses, following the revision of future business plans. Changes in product mix within the Imaging Products Business also contributed to the decline in profitability.
As a result, the annual dividend was 40 yen per share, lower than that of previous fiscal year.

For FY2026, the first year of our new Medium-Term Management Plan, we forecast revenue of 740.0 billion yen, operating profit of 10.0 billion yen (operating margin of 1.4%), and profit attributable to owners of parent of 10.0 billion yen.
We expect revenue growth to be driven by the expansion of semiconductor-related businesses, including semiconductor lithography systems and EUV-related components, as well as a recovery in market conditions—particularly the Healthcare Business in the U.S. academia sector—and increased sales in the Digital Manufacturing Business.
Operating profit is expected to improve significantly, reflecting the disappearance of the one-time losses recorded in the previous fiscal year, the positive impact of higher revenue from semiconductor-related businesses, and the benefits of structural reforms implemented in the Digital Manufacturing Business. In addition, we are pursuing self-help measures, including the optimization of research and development expenses and tighter cost control measures. Through these efforts, we plan to achieve a substantial year-on-year improvement in operating profit of 122.4 billion yen. ROE is expected to be 1.7%.
While the business environment surrounding Nikon is becoming increasingly uncertain due to factors such as rising material and component costs, we strongly recognize that improving short-term business performance by profitability improvements is an urgent priority. By reducing fixed costs and improving balance sheet efficiency, we will work across Nikon to achieve a steady recovery in earnings.

Our new Medium-Term Management Plan, which extends through FY2030, incorporates the lessons learned from the previous plan. While maintaining strict financial discipline, we will allocate management resources more selectively to priority areas that have the greatest potential to enhance corporate value. Specifically, we have identified the following as our three focus areas: semiconductor lithography systems and digital lithography systems in the Precision Equipment Business, large-format metal 3D printers in the Digital Manufacturing Business, and digital cinema cameras in the Imaging Products Business. The stable cash flow generated by our profitable businesses—Imaging Products, Healthcare, and Industry—will be strategically reinvested in our three focus areas to support future growth.
To ensure appropriate management of capital efficiency and financial discipline across these businesses, we have newly adopted ROIC as a key performance indicator and will monitor it continuously. Our targets for FY2030 are business ROIC of 15% or higher on average and 7% companywide ROIC, with the ultimate objective of achieving ROE of 10%. Rather than applying a uniform ROIC target across all businesses, we will establish goals that reflect the business cycle and characteristics of each business. By linking these targets to divisional performance evaluations and executive compensation, we will further enhance the effectiveness of our management framework.
In addition, we will strengthen our focus on cash-flow management. While we have already taken steps to strengthen management in each business and reinforce awareness of the importance of cash flow, the new Medium-Term Management Plan places even greater emphasis on profitability improvement, optimization of working capital and enhancement of production efficiency, including at our subsidiaries, as well as disciplined investment selection. Through these efforts, we aim to build a more stable and sustainable cash-flow foundation.

To realize the vision, growth strategy, and financial targets outlined in our new Medium-Term Management Plan, we will allocate approximately 90% of available capital resources to growth investments. More than half of this amount will be concentrated in the businesses that represent our three focus areas, thereby strengthening our earnings foundation for the medium- to long-term.
With respect to strategic investments, major M&A activities are largely behind us, and we will shift our focus onto smaller-scale investments aimed at acquiring future technologies. R&D investments will be directed toward areas with strong potential for mid- to long-term profit growth, while capital expenditures will be carefully prioritized, focusing on enhancing production infrastructure and core IT investments. At the same time, we will maintain a strong focus on financial soundness and capital efficiency. By reinforcing management discipline using ROIC as a key performance indicator, we aim to maintain an equity ratio of 50% or higher.
Regarding shareholder returns, our target is a total shareholder return ratio of 40% or more. To achieve sustainable growth, we will pursue a balanced capital allocation policy that supports both business investment and shareholder returns. For FY2026, we plan to pay an annual dividend of 20 yen per share. Under the new Medium-Term Management Plan, approximately 10% of available capital resources will be allocated to shareholder returns. By improving profitability over the medium- to long-term, we aim to further enhance returns to our shareholders.

At present, Nikon’s financial position reflects a net debt balance, with interest-bearing debt exceeding cash and cash equivalents. As we move forward with the new Medium-Term Management Plan, we recognize that maintaining rigorous financial discipline is one of our highest priorities.
As we strive to realize our vision of being “a key technology solutions company in a global society where humans and machines co-create seamlessly,” I believe it is my responsibility as CFO to drive sustainable growth from a financial perspective and contribute to the enhancement of corporate value.
By restoring profitability as quickly as possible, we will generate the capacity for future growth investments. Even as we enter the phase of significantly expanding selected businesses, we will remain focused on capital efficiency, maintain a sound balance sheet, and strengthen the stability of cash flows generated by our businesses. Through these efforts, we will support the realization of Nikon’s vision.
Going forward, we will continue to strengthen our financial management framework while steadily fostering a stronger awareness of financial discipline throughout Nikon. Through these efforts to reinforce financial discipline and enhance corporate value, we will also strive to further improve returns to our shareholders.
We sincerely appreciate the continued understanding and support of all our stakeholders as we move forward.