Determined to change, with unchanging belief in mi

Transcription

1 C O M P A N Y P R O F I L E

2 Determined to change, with unchanging belief in mi Nikon marked the 100th anniversary of its foundation this year. We express our sincere gratitude to all of our stakeholders who have faithfully supported our development over the past 100 years. It is my great honor to be in the important position of president during this milestone year. At the same time, I am fully aware that I bear very heavy responsibility to keep our company on the right track in order to continue effectively meeting the needs of society. What we have always cherished is Trustworthiness and Creativity, our corporate philosophy. This will remain unchanged in the future. Currently, we are experiencing times of great change. Various systems utilizing artificial intelligence (AI) are about to penetrate every part of our everyday lives, while Industry 4.0 using advanced information technology is transforming the manufacturing sector. Optical technologies that Nikon has been refining over the previous century form one of the cornerstones, along with AI and sensors, for the betterment of the world by serving as the eyes of the smart society that is now being built. To capitalize on this exciting opportunity, we have adopted our new vision that provides our guidelines for the future and are pursuing aggressive restructuring in order to progress on our path steadily over the next 100 years. We ask for your continued support and guidance as we move into our next century. Kazuo Ushida President Representative Director 2

3 MESSAGE FROM THE PRESIDENT CONTENTS nd. 2 Message from the President 4 Our Corporate Philosophy, Vision and Qualities of Mind 6 Restructuring 8 Businesses 10 Imaging Products Business 12 Precision Equipment Business 14 Healthcare Business 16 Industrial Metrology and Others 20 Products/Business Lineup 22 Global Network 24 Open Innovation 25 Marketing 26 Research and Development 28 Manufacturing 30 Environmental Activities 31 Community Contribution 32 Cultural Activities 34 Corporate History COMPANY PROFILE Company Name NIKON CORPORATION Head Office Shinagawa Intercity Tower C, , Konan, Minato-ku, Tokyo , Japan Tel: President Representative Director Kazuo Ushida Established July 25, 1917 Outline of Business Capital Revenue (consolidated) Number of Employees (consolidated) Plants (Nikon Corp.) Manufacture and sales of optical instruments 65,476 million (as of March, 2017) 749,273 million [for the year ended March 31, 2017, International Financial Reporting Standards (IFRS)] 25,031 (as of March 31, 2017) Oi, Yokohama, Sagamihara, Kumagaya, Mito and Yokosuka 3

4 A new Nikon is moving toward its next 100 years. Ever since its establishment in 1917, Nikon has been focusing on light and expanding the possibilities of light as a pioneer of optical technologies to the world. To express our gratitude to all of our stakeholders who have faithfully supported our development in the past 100 years and help achieve a future full of hope, we will continue to strive to gain even deeper trustworthiness from our customers in the industrial, medical and scientific fields while delivering exhilarating experiences to our customers in the imaging field. Nikon will create new values by applying our accumulated technologies to diverse fields. As society becomes smarter with the help of AI, advanced optical systems made possible only by Nikon will become indispensable as its eyes in a broad range of sectors, including transportation, industry and agriculture. To provide guidelines for our move toward the future, we formulated a new vision this year and set forth to our staff members the mindsets we need in our bid to create new business fields. Unlock the future with the power of light. Nikon is taking important steps toward its next 100 years. 4

5 OUR CORPORATE PHILOSOPHY, VISION AND QUALITIES OF MIND OUR CORPORATE PHILOSOPHY Trustworthiness and Creativity Our corporate philosophy is Trustworthiness and Creativity. These are simple words, but they are not easily put into practice. These important words represent unchanging principles to which we will always be dedicated. OUR VISION Unlock the future with the power of light Unleashing the limitless possibilities of light. Striving to brighten the human experience. Focused, with purpose, on a better future for all. THIS IS THE ESSENCE OF NIKON. OUR QUALITIES OF MIND Curiosity We show our passion for progress through a wide range of interests to cultivate fresh ideas. Acceptance We warmly embrace diverse ideas and delight in differences among people and cultures. Inspirational Power We share our ideas with infectious enthusiasm to effect positive change in the world. 5

6 To continue forward, firmly, powerfully, and sustainably. Nikon has been conducting restructuring in order to enhance our ability to generate profits and create value. We are placing a company-wide focus on high value-added businesses to improve profitability, while optimizing our R&D, manufacturing, and sales as a global initiative. Also, our headquarters functions have been streamlined to match the scale of our restructured businesses. Simultaneously, we are shifting to portfolio-based management, implementing targets linked to shareholder value, and enhancing our governance structure to improve transparency and discipline. By applying these initiatives, Nikon will further increase value creation. 6

7 RESTRUCTURING 1 Focus on profitability in the Semiconductor Lithography Business l Completion of headcount optimization including re-assignment towards change in business structure l Advancing R&D expense reduction and profit-focused production/sales structure l Executed rationalization of inventory 2 Enhancing profitability in the Imaging Products Business l Completion of domestic headcount rationalization including re-assignment l Target a profit structure able to sustain profit in a declining market by initiating a fundamental review of costs 3 Strengthening technology and increasing the efficiency of manufacturing optical components, as well as development and design technologies l Consolidation of optical components manufacturing to Tochigi Nikon: Progress on integration of organization/ business to enhance functions l Established Optical Engineering Division and consolidated optical product development and design functions 4 Review of organizational structure by redefining headquarters functions l Near completion of headcount optimization including re-assignment l Continued consideration of organizational streamlining 5 Increasing value creation by rewiring management DNA l Launch ROE/ROIC based new business performance management process l Step-up consideration of governance system improvement 7

8 Supporting the evolution of a smarter soc Unraveling life mechanisms, advancing m manufacturing. Nikon supports society in a wi Optoelectronics Technologies Precision Technologies We provide products and solutions that are beneficial for society, based on opto-electronics and precision technologies. IMAGING PRODUCTS BUSINESS Digital cameras Film cameras Interchangeable lenses Speedlights Photographic accessories Software Sport optics PRECISION BUSI FPD lithogr Semico lithograph 8 At Nikon, we use opto-electronics and precision technologies cultivated during our 100-year history to provide a wide range of products and services globally. Our activities extend from exploring the possibilities of imaging, to advancing bioscience and smart devices, refining our

9 BUSINESSES iety, and providing imaging possibilities. edical research, and delivering precision de range of fields now and into the future. EQUIPMENT NESS aphy systems nductor y systems HEALTHCARE BUSINESS Biological microscopes Super-resolution microscopes Cell culture observation systems Ultra-wide field retinal imaging devices INDUSTRIAL METROLOGY AND OTHERS Industrial Metrology Business Customized Products Business Glass Business Encoders Business Ophthalmic Lenses Business high-level manufacturing processes, and capturing views of stars that are billions of light years away. Nikon will continue to enrich lives, support cutting-edge industries that are shaping the future, and confront challenges around the world. 9

10 Offering rich and va IMAGING PRODUCTS BUSINESS Nikon brings expanded imaging enjoyment to people around the world. Our digital cameras capture crucial moments in high-quality images that can be shared easily using our exclusive application and online services. Nikon cameras enable versatile image creation that meets users intentions. We provide a wide variety of models, including a full lineup of digital SLR cameras, ranging from those for family use to advanced professional equipment, and the KeyMission action camera series. Image sharing and storage service NIKON IMAGE SPACE and the SnapBridge app, which seamlessly connects a Nikon camera and smart devices, expand pleasures that are unique to digital imaging. Meanwhile, Nikon Group Company, Mark Roberts Motion 10

11 ried image creation. Control Limited (MRMC) in the U.K., provides automated camera solutions to propose new imaging possibilities for the broadcasting and movie industries. We also offer various binoculars including super-wide-field-of-view WX binoculars that make the most of Nikon s accumulated optical technologies, as well as Fieldscopes, Loupes and Laser Rangefinders. Your images. The world. Connected. SnapBridge. Establishes a constant connection between your Nikon camera and compatible smart device using Bluetooth low energy (BLE) technology. Taken images are reduced in size to approximately 2 megapixels for automatic transfer to smart devices for easy uploading to social media platforms. With SnapBridge, you can share your passion with the world anytime, and anywhere. * The Bluetooth word mark and logos are registered trademarks owned by Bluetooth SIG, Inc. and any use of such marks by Nikon Corporation is under license. 11

12 Building a supe PRECISION EQUIPMENT BUSINESS IC chips and high-resolution flat panel displays hold the key to further improvements in IoT, AI and smart devices. Through the development and production of these manufacturing systems, Nikon is supporting the creation of a super smart society. Improved computer data processing, big data analytics and the evolution of AI have led to the birth of various new services that integrate objects and information. IC chips and flat panel displays are two crucial components for such IoT development. At Nikon, we create and market these essential systems through an integrated business structure, covering everything from development and design to manufacturing, 12

13 r smart society. sales and after-sales services. From supplying innovative semiconductor lithography systems that satisfy the ever-changing demand for smaller and more intricate IC chips, to producing FPD lithography systems for large panels, as well as the high-definition small and medium-sized panels found in smart devices, Nikon is working to create a super smart society Contributing to the evolution of electronic devices. that benefits the whole world. 13

14 For a better q 14 HEALTHCARE BUSINESS Nikon provides quality evaluation and contract manufacturing of cells for regenerative medicine, and machine learning-enabled inspection/diagnostic solutions in the field of retinal imaging that help improve the quality of life for people all over the world. Nikon is playing a vital part in creating an ideal society where everyone can live well, by offering microscopes and other instruments necessary for research such as medical fields where ips cells are expected to enter practical use for regenerative medicine in the near future. Following a strategic collaboration agreement with Lonza (Switzerland), Nikon has started a regenerative medicine contract manufacturing business via a new, wholly owned subsidiary, Nikon CeLL innovation Co., Ltd. We will continue

15 uality of life. to work toward achieving the clinical application of regenerative medicine in Japan. In May 2015, we acquired Optos Plc, a leading company in the retinal diagnostic imaging equipment market, as a wholly owned subsidiary. In December 2016, Nikon and Verily Life Sciences LLC (U.S.A.) established a strategic alliance to develop machine learning-enabled solutions for diabetesrelated eye disease. We are contributing to improving the quality of life for people all over the world. Angle of Optos ultra-wide field retinal imaging device Angle of conventional fundus camera Optos ultra-wide field retinal imaging device Nikon group s Optos ultra-wide field retinal imaging device is inspection equipment that captures a digital image covering approx. 80% of the retinal area (with its wide field of view of 200 ) within 0.4 second, and supports identification of many medical conditions. Non-mydriatic diagnosis greatly reduces the burden on patients. As well as detecting eye problems such as a retinal detachment, it is also used for diagnosis of diabetic retinopathy in diabetic patients, so is effective for use at ophthalmology medical facilities. 15

16 For the evoluti society and scie INDUSTRIAL METROLOGY BUSINESS INDUSTRIAL METROLOGY AND OTHERS Nikon produces measuring technologies that are indispensable for industry development and develops cutting-edge technologies for space exploration, as well as making more familiar products, such as ophthalmic lenses. Through our varied business products and technologies, we are contributing to the evolution of science technology, industry and society. Highly precise eyes support uncompromising manufacturing. With a wide and varied lineup including industrial microscopes, measuring equipment and nondestructive/non-contact diagnostic systems, Nikon provides the rigorous quality-control solutions required for high-level manufacturing of products such as electronic components, automobiles and airplanes. Nikon-Trimble Co., Ltd. [a joint venture with Trimble Navigation Ltd. (U.S.A.) (now Trimble Inc.)] delivers improved productivity and supplies high-accuracy surveying instruments for the fields of construction and surveying. Thus, we meet various surveying needs with the utmost precision. 16

17 on of industry, nce technology. Image of Akatsuki Copyright: Japan Aerospace Exploration Agency (JAXA) CUSTOMIZED PRODUCTS BUSINESS State-of-the-art technologies for space. Nikon s Customized Products Business capitalizes on the company s state-of-the-art technologies to meet unique, advanced needs. Nikon reliably handles everything from design to manufacture, providing optical parts and products which require ultra-high precision such as those for the Venus Climate Orbiter Akatsuki and the observation systems for the Subaru large-scale infrared telescope. We utilize our core technologies to the utmost to turn customers demands into reality. X-ray/CT Inspection System XT H 450 (Industrial Metrology Business) This system utilizes X-ray transmission to display the inner structure of electronic components, injection moldings and castings for nondestructive inspection. The XT H 450 employs a high-power X-ray to allow inspection of large castings and high-density metal products/objects, such as turbine blades. It has a powerful 450kV X-ray, and delivers the highestresolution images in the world, meeting the increasing demand for more accurate industrial inspections. X-ray inspection of turbine blades 17

18 INDUSTRIAL METROLOGY AND OTHERS GLASS BUSINESS Optics based on a legacy of technological expertise. Nikon started research into glass manufacturing in 1918, the year after the company was founded. Today, we continue to produce high-quality optical components and photomask substrates for FPD, in an integrated production process covering everything from dissolving optical materials to applying final processing. We also provide analyzing and measuring services for optical materials and components, supporting quality control in various sectors. ENCODERS BUSINESS Contributing to advances in robotic technology. Nikon s encoders are used as sensors in the joints of industrial robots and machine tools to measure the quantum or rotation angle. We support increased sophistication, automation and energy efficiency in a variety of industry fields, by harnessing all kinds of innovations from our unique optical and ultra-highprecision technologies, to electronics, high-density packaging and accurate pattern-forming technologies thus contributing greatly to the future development of industry. 18

19 OPHTHALMIC LENSES BUSINESS Optical technology for comfortable vision. Nikon has been researching optics and ophthalmic lenses for more than half a century, and developed innovative products by utilizing cutting-edge technologies. Our 3D custom-made single-vision lens SEEMAX offers optimally designed lenses according to the selected frame for each individual customer. Nikon-Essilor Co., Ltd. (a joint venture with Essilor International) is in charge of our ophthalmic lenses business. 4D free-form silica glass realized a manufacturing revolution. (Glass Business) Created by liquefying glass materials at room temperature and forming lamination layers, 4D freeform silica glass has optical characteristics equivalent to silica glass, but can be produced at a tenth of the cost and formed freely in a single operation without grinding. It offers superior laser transmission, making it suitable when both transparency and heat-resistance are required. 19

20 IMAGING PRODUCTS BUSINESS Digital SLR Camera D5 Advanced Camera with Interchangeable Lenses Nikon 1 J5 Interchangeable Lenses for SLR Cameras NIKKOR Action Camera KeyMission 360 Expands the shooting range of professional photographers Nikon s flagship model. Enables 4K UHD movie recording while attaining fast continuous shooting with AF and short shooting time lag. Offers a diverse and extensive lineup of lenses that beautifully capture subjects with stunning depiction. Provides 360 video recording with superb image quality of 4K UHD in diverse shooting situations. Compact Digital Camera COOLPIX A900 Binoculars WX 7 50 IF Fieldscope EDG 85-A VR Laser Rangefinder for use in golf COOLSHOT 80i VR Offers a high-performance 35x optical zoom in a small, lightweight body. Features a super-wide field of view, gathering Nikon s leading-edge optical technologies realized by our passion for craftsmanship. Incorporates Nikon s lens-shift type VR (Vibration Reduction) system for comfortable, stress-free viewing. Employs a VR (Vibration Reduction) system, facilitating measurement to small subjects like a flagstick. HEALTHCARE BUSINESS Super-Resolution Microscope N-SIM Super-Resolution Microscope N-STORM Inverted Microscope ECLIPSE Ti2 Cell Culture Observation System BioStation CT Delivers a resolution of approx. 100 nm about double that of conventional optical microscopes. Realizes resolution more than 10 times that of conventional optical microscopes. Greatly contributes to the most advanced biological science research. Enables tracking observation of cells without subjecting them to stress. Ultra-Wide Field Retinal Imaging Device California/Daytona Captures an image covering approx. 80% of the retinal area within 0.4 second in non-mydriatic, non-contact photography. 20 Nikon technologies contribute to people s live

21 PRECISION EQUIPMENT BUSINESS FPD LITHOGRAPHY BUSINESS SEMICONDUCTOR LITHOGRAPHY BUSINESS FPD Scanner FX-68S FPD Scanner FX-101S ArF Immersion Scanner NSR-S631E ArF Scanner NSR-S322F Supports the production of leading-edge, high-resolution, small- and medium-sized panels from Gen 6 plates. Facilitates mass production of Gen 10 large glass plates. Delivers high accuracy and high throughput, for stable volume manufacturing at cutting-edge production lines. Employs the proven Streamlign Platform, while overlay accuracy and high throughput are greatly improved. INDUSTRIAL METROLOGY AND OTHERS INDUSTRIAL METROLOGY BUSINESS CNC Video Measuring System NEXIV VMZ-R4540 Non-Contact Multi-Sensor 3D Metrology System HN-C3030 X-ray/CT Inspection System XT H 450 Total Station Nivo Series Automatically measures dimensions/shapes of diverse objects including precision parts and electronic components. Offers high-precision measuring and quickly acquires various data of the target such as surface form/undulation. Enables inspection of large castings and high-density metal objects, such as turbine blades. Surveying instruments used to measure distances and angles. CUSTOMIZED PRODUCTS BUSINESS GLASS BUSINESS ENCODERS BUSINESS OPHTHALMIC LENSES BUSINESS Optical systems for Akatsuki Optics Multi-Turn Absolute Encoder MAR-M50A SEEMAX series Nikon designed the optical system for the IR1 infrared camera, ultraviolet imager (UVI) and lightning and airglow camera (LAC), and designed and manufactured a lens for the IR2 infrared camera. Nikon s optical materials feature high homogeneity and have excellent optical characteristics. Our advanced processing technologies enable us to create the highest performance optics. Achieves a height of only mm. It is ideal for use in small AC servomotors for industrial robots and service robots. A series of lenses utilizing shape and fitting parameter optimization to deliver maximum performance. s, society, industries, science, and the future. 21

22 OTHER AREAS 22.3% JAPAN 16.9% MEDICAL 2.7% INSTRUMENTS 9.8% OTHERS 3.3% PRECISION EQUIPMENT CHINA 19.9% 749,273 million UNITED STATES 24.3% IMAGING PRODUCTS 51.1% 33.1% EUROPE 16.6% Ratio of Revenue by Segment [for the year ended March 31, 2017, International Financial Reporting Standards (IFRS)] Ratio of Revenue by Region * This chart defines industry segments as of March, In June 2017, industry segments were reorganized. [for the year ended March 31, 2017, International Financial Reporting Standards (IFRS)] Taking full advantage of its global network, Nikon expands its comprehensive power. 22 Our technologies, products and services contribute in diverse ways to many different fields worldwide. We have developed our production, sales and service locations around the world based on careful analysis of industrial and market conditions, as well as the cultures and lifestyles of each country and region. All of this is designed to provide our values precisely where they are needed; from people s everyday lives to the exploration of outer space. By combining the comprehensive power of our groups and proposing effective business solutions, Nikon delivers our values to the whole world. Mark Roberts Motion Control Limited (U.K.) Mark Roberts Motion Control Limited (MRMC) (U.K.), which joined the Nikon Group in October 2016, designs, develops and manufactures robotic solutions which enable remote and automatic capture for an extensive range of clients, from broadcast and film production through to product photography. With its award-winning technology, MRMC has established a strong reputation for engineering excellence within the motion control industry.

23 GLOBAL NETWORK EUROPE THE AMERICAS ASIA, OCEANIA, THE MIDDLE EAST JAPAN Japan l Sendai Nikon Corporation l Nikon Imaging Japan Inc. l Nikon Vision Co., Ltd. l Miyagi Nikon Precision Co., Ltd. l Tochigi Nikon Precision Co., Ltd. l Nikon Tec Corporation l Nikon CeLL innovation Co., Ltd. l Nikon Instech Co., Ltd. l Nikon-Trimble Co., Ltd. l Nikon Engineering Co., Ltd. l Hikari Glass Co., Ltd. l Nikon-SBI Innovation Fund l Nikon-Essilor Co., Ltd. l Nikon Lenswear Experience Center Co., Ltd. l Nikon Business Service Co., Ltd. l Nikon Staff Service Corporation l Nikon Tsubasa Inc. l Nikon Systems Inc. l Tochigi Nikon Corporation l TNI Industry Corporation The Americas l Nikon Americas Inc. l Nikon Inc. l Nikon Canada Inc. l Nikon Mexico, S.A. de C.V. l Nikon Latin America, S.A. l Nikon do Brasil Ltda. l Nikon Precision Inc. l Nikon Instruments Inc. l Nikon Metrology, Inc. l Nikon Research Corporation of America Europe l Nikon Holdings Europe B.V. l Nikon Europe B.V. l Nikon GmbH l Nikon U.K. Ltd. l Nikon France S.A.S. l Nikon CEE GmbH l Nikon (Russia) LLC. l Mark Roberts Motion Control Limited l Nikon Precision Europe GmbH l Nikon Instruments Europe B.V. l Optos Plc l Nikon Instruments S.p.A. l Nikon Metrology NV l Nikon Metrology GmbH l Nikon Metrology UK Ltd. l Nikon Metrology SARL Asia, Oceania, the Middle East l Nikon Holdings Hong Kong Limited l Nikon Asia Pacific Pte. Ltd. l Nikon Hong Kong Ltd. l Nikon Singapore Pte. Ltd. l Nikon (Malaysia) Sdn. Bhd. l Nikon Australia Pty Ltd l Nikon India Private Limited l Nikon Sales (Thailand) Co., Ltd. l Nikon Middle East FZE l Nikon Imaging (China) Sales Co., Ltd. l Nikon Imaging Korea Co., Ltd. l Nikon (Thailand) Co., Ltd. l Nikon Imaging (China) Co., Ltd. l Nikon Lao Co., Ltd. l Nikon International Trading (Shenzhen) Co., Ltd. l Nikon Precision Korea Ltd. l Nikon Precision Taiwan Ltd. l Nikon Precision Shanghai Co., Ltd. l Nikon Instruments (Shanghai) Co., Ltd. l Nanjing Nikon Jiangnan Optical Instrument Co., Ltd. l Nikon Instruments Korea Co., Ltd. l PT Nikon Indonesia l Guang Dong Nikon Camera Co., Ltd. l Hang Zhou Nikon Camera Co., Ltd. * Major Nikon Group companies are listed above. Nikon Group consists of Nikon Corporation, its 90 subsidiaries and 20 associated companies. (as of March 31, 2017) 23

24 OPEN INNOVATION Nurturing new businesses in many different ways. Nikon initiates open innovation in both the creation of new businesses and the expansion of current ones. Nikon and SBI Investment Co., Ltd. jointly established the new private Nikon- SBI Innovation Fund that invests in Nikon s current business areas, as well as in the latest technologies and new service areas (e.g., IT, AI and robots). The Fund will invest in startups looking to future business expansion. Furthermore, Nikon is proceeding with the Accelerator Program through which Nikon nurtures innovators (entrepreneurs) willing to take up the challenge of innovating with us for the future. Nikon has also promoted collaboration with multiple venture capital firms in Japan, the U.S.A., and Europe, as well as cooperation with universities, external councils and organizations. Expansion of business scale through alliances Establishment and management of a private fund Cooperation with venture capital business Launch of the Accelerator Program Collaboration with universities, companies, and external organizations 24

25 MARKETING LC15Dx laser scanner for 3D metrology jointly developed by Japan and Europe Developing global marketing activities through communication with customers. Nikon s product manufacturing process begins with us listening to customers all over the world, so we can understand precisely what they want from us. For example, in the BtoB field, the Industrial Metrology Business Unit created the LC15Dx laser scanner for 3D metrology with technologies developed in multiple countries. It enables non-contact measurement of 3D shapes and is highly rated by customers. From Europe, the U.S.A. and Asia, Nikon extends this borderless approach to a diverse range of industries. We advance our development projects utilizing the expertise of various regions with different manufacturing and industrial structures, and provide optimum solutions. Substantial after-service customer support Most semiconductor and flat panel display production lines operate around the clock. A structure has been established in which Field Service Engineers (FSE) of Nikon Tech Corporation, which is in charge of the maintenance of Nikon s lithography systems, provide prompt servicing to support performance. Feedback from these engineers then helps improve the reliability of our products. 25

26 Realizing a bright future with Nikon s D.N.A. 26 To strengthen our existing businesses and create new businesses, it is vital to continue basic R&D activities based on a long-term perspective. With our opto-electronics and precision technologies as a foundation, Nikon is conducting R&D in a wide range of technologies, such as optics, precision measurement and manufacturing, image processing, materials, and software and systems. One of these technologies is a bioscience solution through AI technology development. Combining Nikon s latest bio-imaging technologies for microscope images and AI technologies inspired by data mining and machine learning analysis, we have been advancing R&D on a biomolecular network analysis system. We will provide new solutions to various challenges in the biosciences, which have shown remarkable innovations in recent years. AI technology sparse modeling Bio-imaging technology

27 RESEARCH AND DEVELOPMENT Meeting held with R&D headquarters staff Basic Technologies that Support Nikon Optics Opto-electronics Technologies Precision Technologies Precision Measurement and Manufacturing Image Processing Materials Software and Systems Optical Engineering Division is established to aggregate optical designs Nikon established the Optical Engineering Division to aggregate all the optical engineering functions distributed among multiple divisions, such as lens design, mechanical design, and system design related to optical devices and optical solutions. The Optical Engineering Division combines high-level technologies and knowledge of optical design to generate synergistic effects. This helps Nikon improve and diversify, utilizing its strengths to create new value in the development of highly competitive optical products. Flexible Electronics Technology At Nikon, we conduct R&D on flexible electronics technology to create electronic circuits or elements on thin, flexible plastic substrates. For example, the nanoparticle mist deposition method allows easy formation of oxide semiconductor films at low temperatures and atmospheric pressures, for use in transparent conductive films and electronic circuits on a plastic substrate. With applications in flexible displays and flexible sensors, this technology has the potential to revolutionize electronics manufacturing, in both materials and devices. 27

28 Giving form to our pride as a manufacturing company. The continuous pursuit of exacting precision is the thread that connects all Nikon products. In order to offer high-quality products that meet the needs of the times, we constantly work to reduce manufacturing lead times and costs on a global scale by utilizing the latest manufacturing facilities and technologies. Nikon (Thailand) Co., Ltd., Nikon s largest overseas production plant, manufactures digital SLR cameras and NIKKOR lenses. Tochigi Nikon Corporation designs and produces a diverse range of optical lenses in Japan, and manufactures the projection lenses for semiconductor lithography systems and FPD lithography systems. Both companies are aggressively advancing efforts to improve each manufacturing process in order to realize further enhanced product quality, optimized work efficiency and shortened work hours. High-function Cell Production Using Work Stations Sendai Nikon Corporation, which manufactures Nikon D5 digital SLR cameras and other products, installed a high-functioning cell production system in which a single worker handles several processes to improve production efficiency. The work station was developed and installed to support workers by automatically supplying parts in order of assembly as well as adjusting driver torque. 28

29 MANUFACTURING Precise manufacturing dedicated to refinement Advanced Processing by Nikon Master Craftspersons We recognize certain employees as Nikon Master Craftspersons: exceptionally skilled people who take charge of manufacturing the parts of products that require extremely high precision and quality. These photos show Nikon Master Craftspersons processing metals and assembling optics. Production of FPD Lithography Systems The advent of 4K displays, which have more than 8 million pixels, and subsequently 8K displays, has accelerated the development of higher-definition and larger flat panel displays. Nikon assembles, adjusts, and inspects FPD lithography systems to support the mass production of large panel displays. We manufacture and ship each unit such as stage, optical systems, and illumination systems to our customers, then assemble and adjust the components at the customer s facilities. 29

30 ENVIRONMENTAL ACTIVITIES Optical glass melting experiment Creating new value through manufacturing. 30 The Nikon Group aims to enhance the efficiency of its development and production processes, as well as product quality, by continuously pursuing the improvement and advancement of the core technologies that support manufacturing. One example is the development of production technology in glass manufacturing by Hikari Glass Co., Ltd. We optimized the entire manufacturing process by applying a technological development method known as quality engineering and established a method to create high-quality products right from the start of mass production. We also improved the weight management accuracy of raw materials and the dimensional precision of molds. Adopting these measures, we have successfully shortened development periods, minimized material loss, decreased electricity consumption in production, and thus reduced the resultant CO2 emissions. n Amount of waste reduced by process optimization Reduced by approx. n Energy consumption related to experiments Reduced by approx. n Amount of waste reduced by minimizing defective products Reduced by approx t 35 t 103 t CO2/year CO2/year CO2/year

31 COMMUNITY CONTRIBUTION Nikon Scholarship Program in Laos Promoting community contribution activities firmly rooted in a country or region. Nikon engages in community contribution activities in all countries and regions where we operate. We focus on the following five areas: environment, education, social welfare, culture and arts, as well as assistance for reconstruction. In Laos, employees working for Nikon Lao Co., Ltd have been engaged in exchange activities with local people on a daily basis. The synergetic effects from Nikon s community activities that contribute to the development of human resources who can support the future of Laos, through providing scholarships and school supplies, have helped establish us as trusted members of the local community. Nikon will continue to support the regional economy as well as children s education in Laos through its business activities. 31

32 Nikon Photo Contest final judging Developing support for photographic cultural activities globally. 32 Nikon engages in activities with the aim of realizing a prosperous society through culture and the arts. As one of these activities, Nikon holds one of the largest international photo contests in the world, the Nikon Photo Contest, which started in Providing an opportunity for photographers around the world to communicate and to enrich the image-making culture for professionals and amateurs alike, Nikon contributes to photo culture development. In the contest, we established the Next Generation category to discover new talent among those under the age of 30, in addition to the Nikon 100th Anniversary category. A total of 76,356 works from 170 countries and regions were submitted. Holding the TopEye Photography Summit for High-School Students Nikon Imaging Japan Inc. distributes the free magazine TopEye to approx. 7,000 junior and high-school photography clubs, encouraging student photographers. Since 2013, the TopEye Photography Summit for High-School Students has been held every year, inviting photography club students and teachers from the top 15 contest-winning schools marked the fifth year of the contest, with a total of 60 participants as part of the Photo Yokohama 2017 exhibition. The event includes a photo contest and lectures.

33 CULTURAL ACTIVITIES Nikon Museum Contributing to a variety of activities aimed at supporting photographic and imaging culture. Nikon has worked in the fields of culture and the arts for many years with a focus on photography and imaging culture, and we are expanding these efforts to every region of the world. In October 2015, the Nikon Museum was opened to commemorate the 100th anniversary of Nikon s foundation. An exhibition of generations of Nikon cameras (approx. 450 models) conveys the company s evolution and the passion that has ignited us since our foundation. Also on display are the histories, products, and technologies of our various businesses, such as industrial equipment including semiconductor lithography systems and FPD lithography, bioscience and medical equipment including microscopes, and eyeglasses. THE GALLERY is open. In summer 2017, the Nikon Salons in Shinjuku and Osaka were renewed under the names Nikon Plaza Shinjuku THE GALLERY 1, Nikon Plaza Shinjuku THE GALLERY 2 and Nikon Plaza Osaka THE GALLERY. In addition, the Be a Photographer program was established to support photographers under 35 years of age. 33

34 1917 Two of Japan s leading optical manufacturers the Optical Instruments Department of Tokyo Keiki Seisakusho and Reflecting Mirror Department of Iwaki Glass Manufacturing merged with capital investment from Koyata Iwasaki, the President of Mitsubishi, to form a comprehensive, fully integrated optical company known as Nippon Kogaku K.K. (Merged with Fujii Lens Manufacturing immediately after establishment) Oi Dai-ichi Plant (now Oi Plant) is completed Research on manufacture of optical glass is initiated 1921 Inviting German engineers and developing the Anytar Lens 1927 Established the mass production of optical glass 1932 NIKKOR is adopted as the brand name for camera lenses 1946 Pointal ophthalmic lens is marketed Nikon brand name is adopted for small-sized cameras 1950 The New York Times introduces the superior features of Nikon cameras and NIKKOR lenses to the world 1952 Nikkor Club is established to promote photography culture 1958 Nikon SP, together with the NIKKOR lens and optical glass, won the grand prix at the 1958 World Expo held in Brussels 1968 Rotary encoder RIE digital measuring instrument is marketed 1969 Call for entry for the 1st Nikon Photo Contest International (now Nikon Photo Contest) 1971 Nikon Photomic FTN is mounted on Apollo 15 Ruling Engine No. 2 is completed Development of Extra-low Dispersion (ED) Glass 1917 Domestic Production of Optical 1946 Becoming the Comprehensive 1980 Instruments and Original Optical Instrument Manufacturer Manufacturing of Optical Glass of the World 1948 Nikon Model I small-sized camera 1957 Nikon SP rangefinder camera 1959 Nikon F SLR camera 1963 NIKONOS all-weather camera 1971 Nikon F Nikon F3 SLR camera 1933 Aero-NIKKOR lens for aerial photography 1962 Ultra Micro-NIKKOR high-resolution optical lenses 1984 NT mm film direct telephoto transmitter 1921 MIKRON 4 15 and 6 15 ultra-small-prism binoculars inch astronomical telescope Cooperation: The National Museum of Nature and Science 1950 Special astronomical telescope 10cm coronagraph 1959 Binoculars Type A (7 35A/8 30A/9 35A) /8 20DCF compact roof (Dach) prism binoculars 1982 Nikon Fieldscope ED 1925 JOICO Microscope Nikon technology: developed through our 100-year history, sustainable into the future. Nikon s history began in Since then, we have held two constants: our awareness of customers demands, and the uncompromising quality of our manufacturing to satisfy them. This spirit has uninterruptedly been handed down in Nikon Model SM stereoscopic microscope 1948 Model I profile projector 1955 Phase contrast microscope 1976 Biophot and Metaphot microscopes 1980 NSR-1010G Step-and- Repeat System (stepper) for manufacturing VLSIs 1983 Alphaphot YS biological microscope 1982 OPTISTATION IC wafer inspection system 1986 NSR-L7501G large substrate exposure system

35 1977 Development of the Nikon F2 Titanium Uemura Special 1981 NASA-specification Nikon F3 is equipped on the Space Shuttle Columbia 1988 Corporate name is changed to Nikon Corporation 2000 Optical-infrared Subaru Telescope employs Nikon s High Dispersion Spectrograph (HDS) and Faint Object Camera And Spectrograph (FOCAS) HDS is permanently installed on the Subaru Telescope. FOCAS is installed on the Subaru Telescope. National Astronomical Observatory of Japan National Astronomical Observatory of Japan 2003 New Brand Symbol for Nikon Group is introduced 2009 Metris NV becomes Nikon Metrology NV, a wholly owned subsidiary of Nikon Corporation in Belgium 2010 D3S and D3X digital SLR cameras, and NIKKOR lenses are used in the International Space Station (ISS) 2013 SPRINT-A HISAKI the Spectroscopic Planet Observatory for Recognition of Interaction of Atmosphere is equipped with a primary mirror developed by Nikon 2015 U.K. s Optos Plc becomes a wholly owned subsidiary of Nikon Corporation The Nikon Museum is opened 2016 Achieved a total production of 100 million NIKKOR lenses for interchangeable lens cameras Expansion of Business Domains, the Challenge of Digital Technologies 1999 Realizing the Possibilities of Light, Becoming a Truly Global Company 1983 Nikon L35AF autofocus compact camera 1983 Nikon F3AF SLR Camera 1986 Nikon F-501 autofocus SLR camera 1992 NIKONOS RS underwater AF SLR camera 1997 COOLPIX 100 and 300 digital cameras 2004 Nikon F6 SLR camera 2011 Nikon 1 J1 and V1 advanced cameras with interchangeable lenses 2013 Nikon 1 AW1 advanced camera with interchangeable lenses 2016 D5 digital SLR camera 1988 LS mm film scanner 1995 E2 and E2s SLR-type digital cameras 1999 D1 digital SLR camera 2007 D3 digital SLR camera 2012 D4 digital SLR camera 2015 COOLPIX P900 compact digital camera 2016 KeyMission action camera series CF zoom binoculars CF WP compact waterproof binoculars IF SP WP waterproof binoculars 2011 EDG Fieldscope 85 VR/ 85-A VR 2016 MONARCH HG 8 42/10 42 binoculars 2016 MONARCH Fieldscope 82ED-S/60ED-S/ 82ED-A/60ED-A 2017 WX 7 50 IF/WX IF binoculars 1996 Nikon Fieldmicroscope 1996 ECLIPSE E800 biological microscope for research 2007 BioStation CT cell culture observation system 2010 N-SIM and N-STORM super resolution microscopes 2015 California Ultra-Wide Field Retinal Imaging Device 1986 TRISTATION 600 and 600M three-dimensional coordinate measuring machines 1995 NEXIV VM-500N CNC video measuring system 2010 HN-6060 non-contact multi-sensor 3D metrology system 1995 NSR-S201A lens-scanning KrF excimer stepper 2000 FX-21S FPD scanner 2001 NSR-S306C lens-scanning ArF excimer stepper 2006 NSR-S609B ArF immersion scanner 2009 FX-101S FPD scanner 2009 NSR-S620 ArF immersion scanner 2016 NSR-S631E ArF immersion scanner 2016 FX-68S FPD scanner 35

36 Shinagawa Intercity Tower C, , Konan, Minato-ku, Tokyo , Japan