HPIR E original 062104 - Nikon

May 10, 2004

Corporate Communications & IR Dept.

Nikon Corporation

Nikon Corporation

Forward-looking statements for earnings and other performance data contained herein are based on information currently available to the Company, and all potential risks and uncertainties are taken into account. The Company asks that investors understand that changes in conditions may cause actual performance to significantly differ from these projections.

Summary of Conference in Tokyo for Financial Results of the Year

Ended March 31, 2004

May 10, 2004


Nikon Corporation

Financial Results for the YearEnded March 31, 2004

May 10, 2004


Nikon Corporation

Financial Highlights for the Year Ended March 31, 2004Financial Highlights for the Year Ended March 31, 2004

0

100

200

300

400

500

600

Net Sales

03/3 04/3 (Previous Forecast)

469

530

-10

-5

0

5

10Income

03/3

OperatingIncome

Ordinary Income

Net Income

Actual Result for 04/3

04/3 (Actual)

Previous Forecast for 04/3506.4

4.2

1.0

3.7

-6.7-6.0

-4.3

-8.1

3.52.4

Billions of Yen

Billions of Yen

May 10, 2004


Nikon Corporation

Sales and Operating Income by SegmentSales and Operating Income by Segment

-30-25-20-15-10-505

1015202530

Imaging Company Precision Company Instruments Company Other Businesses

03/3 04/3 PreviousForecast

04/3 Actual

27.7

-24.6

-1.3

1.8

26.0

2.0

-24.0

-3.0

2.725.2

-20.8

-3.2-100

0

100

200

300

400

500

600

03/3 04/3 PreviousForecast

04/3 Actual

272

133.1

49.941.9

469

310

155

48.040.0

530

-20.0-27.8

506.4

39.648.0

158.1

284.7

-24.0

3.71.04.2

Billions of Yen

Billions of Yen

May 10, 2004


Nikon Corporation

Sales Volume of Steppers and Camera ShipmentsSales Volume of Steppers and Camera Shipments

143143New ICSteppersNew IC

Steppers

Steppers (units sold)Steppers (units sold)

1212UsedIC Steppers

UsedIC Steppers

Total ICSteppers Total IC

Steppers 155155

03/303/3

162162

3535

197197

LCDSteppers

LCDSteppers 3737 4949

04/3ActualResult

04/3ActualResult

159159

4646

205205

5252

Cameras (10,000 of units sold)Cameras (10,000 of units sold)

Digital CameraDigital Camera 336336 550550 540540

TOTALTOTAL 192192 246246 257257

130130Film CompactCamera

Film CompactCamera

9393Film Single-Lens Reflex Camera

Film Single-Lens Reflex Camera

6969

7575

6060

6868

123123InterchangeableLenses

InterchangeableLenses 117117 123123

04/3PreviousForecast


03/303/304/3ActualResult

04/3ActualResult



May 10, 2004


Nikon Corporation

Summary for the Year Ended March 31, 2004Summary for the Year Ended March 31, 2004““A Year: Laying the Groundwork for Giant StridesA Year: Laying the Groundwork for Giant Strides””

The increase in DSC sales resulted in the Company’s highest yet net sales.

Operating income fell short of projections at the beginning of the period due to IC manufacturers postponing investment in the cutting edge technologies of the Precision Equipment Company, while the Imaging Company was adversely affected by increasing competition in the compact digital cameras and some procurementdifficulties. However, improvements in the precision equipment business helped raise operating income beyond that of previous projections.

The Imaging Company made investments in Thailand and China to increase the in-house production of DSCs and their lens units, thereby laying the groundwork for production costs reduction. In addition, the Imaging Company launched a affordably priced digital single-lens reflex Camera D70, which is selling very well, overtaking all competitive models.

In the Precision Equipment Company, Nikon is outstripping its competitors in its pace of technological development of an immersion lithography that will extend the life span of ArF Steppers and that brings to the ultimate exposure technology of extreme ultraviolet lithography (EUVL). Nikon has also been working to reduce manufacturing periods, and all mass-produced models including i-line, KrF and ArF tools can now be completed in six months.

May 10, 2004


Nikon Corporation

Reference Data for the YearEnded March 31, 2004

May 10, 2004


Nikon Corporation

0

10

20

30

40

50

60

70

80

90

100

2Q 4Q1Q 3Q

New ICSteppers

LCDSteppers

Units

Stepper Sales Volume and Market ShareStepper Sales Volume and Market Share

Used IC Steppers

23

36

95

53

16

15

31

52

23

21 46.2

32.9

20.9

383 unit03CY

NikonA

Company

C Company

%

45.2

37.2

17.6

454 unit03CY Nikon %

New ICSteppers Only

04FYThe Year Ended March 31, 2004

Including Used ICSteppers

A Company

C Company

May 10, 2004


Nikon Corporation

Imaging Company: Sales by Product, Imaging Company: Sales by Product, SemiSemi--annual and Regional DSC Shipmentsannual and Regional DSC Shipments

01/3 02/3 03/3 04/3

29

32

20

27

10

9

39

84

16

16

8

8

53

112

11

12

47

59

14

112

626

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Digital Compact Digital SLR ScannerLens Film SLR Film CompactOthers

16%

30%40%

14%Japan

NorthAmericaEurope

Asia, excluding Japan and others

540 million unit

DSC

540 million unit

1sthalf

223317

2ndhalf DSC

May 10, 2004


Nikon Corporation

Forecasts for the YearEnding March 31, 2005

May 10, 2004


Nikon Corporation

Performance Forecasts for Performance Forecasts for the Year Ending March 31, 2005the Year Ending March 31, 2005

-100

0

100

200

300

400

500

600

700

800Net Sales

05/3Forecast

04/3

700

Imaging

Precision

Instruments

OtherBusinesses

-10

-5

0

5

10

15

20

25

30

370.0

250.0

Income04/3

Operating Income

OrdinaryIncome

Net Income

55.050.0 05/3 (Forecast)

506.439.648.0

158.1

284.7

-24.0 -25.0

28.0

19.0 19.0

3.7

-4.3

2.4

Eliminations or Corporate

Billions of Yen

Billions of Yen

May 10, 2004


Nikon Corporation

Preconditions for Forecasts Preconditions for Forecasts (Foreign Exchange Rates, Market Scale, and Other Factors)(Foreign Exchange Rates, Market Scale, and Other Factors)

US$US$

Foreign Exchange RateForeign Exchange Rate

EuroEuro

Assumed Rate for the Year, Ending March 31, 2005

Assumed Rate for the Year, Ending March 31, 2005

¥107¥107

¥128¥128

Impact Per ¥1 DeviationImpact Per ¥1 Deviation

Net SalesNet Sales

¥1.64 billion¥1.64 billion

¥1.23 billion¥1.23 billion

OperatingIncome

OperatingIncome

¥550 million¥550

million

¥410 million¥410

million

Market Scale04CY

Market Scale04CY

New IC Steppers New IC

Steppers LCD

SteppersLCD

SteppersDSC

CompactDSC

CompactDSC

Single-Lens Reflex

DSC Single-Lens

Reflex

500 Units500 Units 60 million units

60 million units

2.4 million units

2.4 million units

160-180 Units

160-180 Units

In the Year Ending March 31, 2005, the market for film cameras is projected to contract by approximately 40% from the previous year.

Market Scale05FY

Market Scale05FY

May 10, 2004


Nikon Corporation

Earnings Forecasts for the Year Earnings Forecasts for the Year Ending March 31, 2005Ending March 31, 2005

0

100

200

300

400

500

600

700

OperatingIncome

Cost ofSales486

Selling,GeneralandAdministrativeExpenses

186

700(320 in the 1st half, and 380 in the 2nd half

of the Year Ending March 31, 2005)

6.06.0Non-Operating IncomeNon-Operating Income

¥28billion¥28billion

15.015.0Non-Operating ExpensesNon-Operating Expenses

4.04.0Extraordinary IncomeExtraordinary Income


4.04.0Income TaxesIncome Taxes


¥24 billion

¥4 billion

¥18 billion

¥1 billion

¥16 billion

¥3 billion

Operating IncomeOperating Income

OrdinaryIncomeOrdinaryIncome

NetIncomeNetIncome

1st half

1st half

2nd half

1st half

2nd half

2nd halfBillionsof Yen

28.0

May 10, 2004


Nikon Corporation

Summary of Forecasts for the Year Summary of Forecasts for the Year Ending March 31, 2005Ending March 31, 2005““A Year: Making a Turnaround for Giant StridesA Year: Making a Turnaround for Giant Strides””

Nikon will expand sales of stepper and DSC and break all previous records for net sales.

Operating income is forecast to be ¥28 billion with the Imaging Company in Strong profit level and the Precision Equipment Company returning profitable for the 1st time in three years.

The Imaging Company will go on the offensive with its high-performance yet affordable digital single-lens reflex Camera D70, and will start producing compact DSC in its factory in Wuxi, China. In coming years, the Company plans to expand annual production to millions of units.

At the Precision Equipment Company, Nikon will realize a clear advantage in dry and immersion ArF technology, and will promote structural reform. In addition, Nikon will increase LCD stepper production to take advantage of all business opportunities.

Cash Stock dividends are forecast at ¥4 at the interim period, and ¥8 for the whole fiscal year.

Documents

HPIR E original 062104 - Nikon