Vision Nikon 21 -- Business Development in the New Century --

We, Nikon Corporation, defined our strategy as "Vision Nikon 21" to clarify the direction and goals of the Nikon group for the first decade of the 21st century in March, 2000.

In order to define "Vision Nikon 21", we have reviewed "Nikon's identity" and understood on what ground we stand as a business group.

• Nikon is a manufacturer backed by excellent technologies

  Manufacturers build the foundations for a prosperous society by offering top-quality merchandise.

• Nikon exists thanks to consumers

  If a consumer feels that Nikon products have enriched their life, then we've achieved our mission.

• Nikon Exists due to its uniqueness

  Nikon's reputation is based on its opto-electronics and precision technologies and its ongoing innovations in these areas.

Taking a major change of Nikon's economic and business environment into consideration, we reviewed our previous "philosophy" and have defined Nikon's new "philosophy" as follows :

It is crucial that we be trusted and loved by people worldwide.
Nikon exists and prospers in harmony on all levels throughout the world.
We maintain pride, faith in our business and encourage an entrepreneurial sprit.
One of our goal is to appeal to people all over the world and satisfy them with efficient and useful products and services.

Nikon has set the following "corporate objectives" in order to realize the principles of our "corporate philosophy" :

• With superb technology as our backbone, we must offer the best quality products and services worldwide.
• By restructuring our business and focusing our management resources on growing areas where we can make the most of our strengths, we aim to be the best in each business field.
• Accomplish a solid management structure wherein each group company strives to grow, evolve and flourish.
• Build agile management that allows us to adapt swiftly to the ever-changing business environment.
• Bring further transparency to management.

In order to realize "Nikon's Philosophy" and "Corporate Objective" and to assure our growth in the new century, we will develop our business by clarifying those business domains in which we excel.
In utilizing our strengths such as opto-electronics and precision technologies, we will reinforce our technologies such as electronic technology, digital technology, information and communication technology and manufacturing technology. We exhibit our strength by restructuring our businesses and focusing our resources on growing fields where we can make the most of our strength.
Nikon's business domain encompasses the following fields :

• High-Tech Industry Related Field :

  This field includes the stepper business, optical measuring and inspection instruments and customized industrial supplies and equipment. This category of merchandise assists and supports the production and research efforts of the user company and public / academic organizations.

  We will develop our business by pursuing the ultimate in technology, quality, precision and performance. In the semiconductor-related field, we can offer stepper-related products as a total package for lithography processing : this includes hardware, software, operation, process management and maintenance. We should also further develop our micro-fabrication technology and related businesses.

• Visual Imaging Field :

  This field is comprised of cameras, binoculars, digital imaging equipment, and related products. Its variety of merchandise offers pleasure, convenience and efficiency to individuals as well as to businesses.

  By combining the imaging and digital technologies, we offer "total value" for our merchandise in the following areas : as a unit, as a related product group, and as a system. The total value for a single product represents its function, performance, design, quality and user friendliness. The total value for the related product group is based on vertical product integration and the flow of merchandise usage as it relates to input, storage, restoration, processing, output, and needed supplies. The total value for the system means offering comprehensive solutions for all hardware, software and services centered on communication network capabilities.

• New Millennium Business :

  Based upon Nikon's core competencies exhibited by "High-Tech Industry Related Field" and "Visual Imaging Field" we will start our search from four different angles.

  1. Search for new opportunities in the High-Tech Industry Related field, the Visual Imaging field, or in an extension of these fields.
  2. Search in a field with the possibility of future growth where our core competencies, brand, or existing distribution network can be utilized.
  3. Search in an as yet uncultivated area within the value chain of the existing business.
  4. Search for essential elements outside the Nikon Group, if necessary, to fully realize our core competencies through promoting tie-ups / alliance, mergers and acquisitions.

We will search for all elements or functions considered necessary to expand our business not only within our group, but worldwide.
We should identify and utilize them in the most appropriate region where we can expect optimum results.