Aiming to keep on providing with new values and sustain growth Nikon Formulates Medium Term Management Plan for Fiscal 2011/3-2013/3

Nikon Corporation has formulated a three-year medium term management plan that will run until the end of fiscal 2013/3. With this plan, Nikon aims to keep on providing customers with new values and generate sustainable growth. It has been announced today by Makoto KIMURA, Representative Director, Executive Vice President, who is nominated as Representative Director, President for approval at the coming Ordinary General Shareholders' Meeting.

I. Missions of Nikon Group

To implement the Medium Term Management Plan, we will always keep the following missions in our mind.

1. Expanding Nikon brand

   Appeal Nikon brand's strength "Spirit of Innovation" added with "Fun".

2. Creating new businesses

   Create new businesses in existing and new fields to reinforce our business domains.

3. Realizing unified and quick-responding organizations

   Headquarters and companies exercise autonomous management while maintaining a sense of unity and speed in a bid to realizing global cooperation.

4. Strengthening business functions and innovating processes

   Both processes/operations and high technological capabilities collaborate at high levels.

5. CSR-oriented management

II. Overview of Medium Term Management Plan

1. Consolidated target for fiscal 2013/3
   • Net sales: 1,100 billion yen (Forecast for fiscal 2011/3: 880 billion yen)
   • Operating income: 120 billion yen (Forecast for fiscal 2011/3: 52 billion yen)
   • Net income: 65 billion yen (Forecast for fiscal 2011/3: 30 billion yen)
   • *Assumed exchange rates
     FY2013/03: 90 yen per US dollar; 110 yen per Euro
     (FY2011/03: 90 yen per US dollar; 120 yen per Euro)
2. Capital Investment and R&D Plan

   Increase investment for business and technological development for future growth compared to the previous Mid Term Management Plan so as to strengthen competitiveness. Maintain the R&D expenses at 7% of net sales.

   • Capital Investment: 120 billion yen (cumulative total from fiscal 2011/3 to 2013/3)

     10 billion yen increase to the previous Mid Term Management Plan
     Investment for launching new products, expanding production capacity, and developing new business, etc.

   • R&D Investment: 200 billion yen (cumulative total from fiscal 2011/3 to 2013/3)

     30 billion yen increase to the previous Mid Term Management Plan
     Investment for developing core technology crucial to boost business competitiveness and basic technology necessary for unique future products.

III. Management Plan of each Company

1. Consolidated targets of each Company for fiscal 2013/3 (unit: billions of Yen)

   	Net sales (A)	Operating income (B)	(B)/(A)
   Precision Equipment Company	280	28	10.0%
   Imaging Company	720	88	12.2%
   Instruments Company	80	4	5.0%

2. Missions of each Company

   In addition to gain the leading position in the existing fields, we aim to create new businesses and expand business domain.

   • Precision Equipment Company

     Expand market shares and improve earning power in the cutting-edge equipment field.
     Create new products and new businesses.

   • Imaging Company

     Maintain the leading position in digital camera industry.
     Expand the domain of imaging business.

   • Instruments Company

     Gain the leading position in existing fields.
     Create new businesses in the fields of bioscience and measuring instruments.

IV. Shareholders Benefit

We have set a target for a total return ratio of 25% or more.
The basic policy regarding the distribution of earnings is to expand investment in business and technology development to ensure future growth, take steps to enhance competitiveness, and pay a steady dividend that reflects the perspective of shareholders, while making continual adjustments to better reflect operating performance.