• Precision Equipment Business
• Imaging Products Business
• Instruments Business
• Corporate

Precision Equipment Business

Q. What can you tell us about future forecasts?

A. Sales figures for the 4Q are mostly fixed and we don't expect them to be much changed. Although there is still uncertainty regarding the market for the second half of the next fiscal year, we expect the market of IC steppers and scanners to drop by approximately 10% while we predict the market of LCD scanners to increase by approximately 20%.

Q. What can you tell us about purchase orders for prototype ArF immersion scanners for 450mm wafers?

A. We officially received the world's first purchase orders for prototype ArF immersion scanners for 450mm wafers. We expect to start shipping prototypes in the beginning of 2015 and mass-production types in 2017. As a result of these purchase orders, we believe we have come one step closer to realizing the next generation technology road map that Nikon has foreseen.

Imaging Products Business

Q. What can you tell us about the revision of the financial forecast in the imaging products business?

A. While we increased production and inventory of digital SLR cameras as one of measures against the risk of floods in Thailand, rapid deterioration in the market occurred late November and continuing into December. That resulted in a reduction of unit prices and additional sales costs in fiercer market competition. This is the main reason of a significant adjustment for Imaging Company which had been making stable earnings, and we have taken this fact seriously.

Q. What can you tell us about forecasts and future plans?

A. Though we expect the market environment for the imaging products business to remain severe in the 4Q, we will be aiming to bring the inventory level on line by the end of this fiscal period. According to the 2013 outlook on DSC shipment forecast announced by CIPA (Camera & Imaging Products Association) on January 31, 2013, the market of compact digital cameras continues to post negative growth and digital cameras-interchangeable lens type is forecasted to show 2-digit growth.
We will try to be more sensitive to changes in the market and make adjustments faster. We will also be reviewing and improving our cost structure including sales and general administration costs again from the fundamentals.

Instruments Business

Q. What can you tell us about future forecasts?

A. The business environment is currently very severe in the bioscience field as a result of reductions in government spending and projects delayed. Our market share in biological microscopes has been expanding in the United States, China and others. We will continue striving to increase our worldwide market share. We will be looking to increase our business in the industrial instrument field with a focus on markets in emerging countries in Asia, including Indonesia, Vietnam and Thailand, and on industries as automotive and aircraft.

Corporate

Q. What has been the impact of the depreciation of yen on earnings?

A. The yen in the 3Q depreciated 4 yen to an US dollar and 1 yen to a Euro compared to the same period of the previous year. This increased sales by 8.6 billion yen. In terms of operating income, since procurement in US dollars are as much as sales in US dollars, and Euro remained relatively unchanged, overall, there was very little impact at all.
We have adjusted our forecasted exchange rates from 80 yen to 85 yen to an US dollar and from 100 yen to 115 yen to a Euro for the 4Q. We expect the result of these adjustments to be approximately 14 billion yen on sales and approximately 3 billion yen on operating income.