23Nikon Sustainability Report 2019

Nikon CSR Contributing to Society through Business Activities

Contents /Editorial Policy

Message from the President Nikon Group Profile Strengthening CSR

FoundationResponding to

Environmental Issues Data IndexCorporate Citizenship Activities

＞Solving Social Issues by Using Opto-electronics Technologies　　＞Challenging toward Innovation　　＞Improving Product and Service Quality

Priority Issue 1 Solving Social Issues by Using Opto-electronics TechnologiesReason for PriorityCompanies are considered public institutions and have a responsibility to develop in partnership with society through transparent and fair activities. Moreover, in recent years, amid the emergence of global level social issues, companies are required to solve these issues through business and contribute to the realization of a sustainable society.

Nikon ApproachNikon celebrated its 100th anniversary in 2017 and established its vision to “Unlock the future with the power of light.” Based on this determination, we aim to solve social issues and achieve further growth for the Nikon Group by improving core technologies with a focus on opto-electronics and precision technologies, which has so far produced cameras and lithography systems. In addition, we will establish systems that can respond promptly to precise needs and continue expanding the areas in which we can contribute to society by diversifying the utilization of opto-electronics and precision technologies as in the commercialization of materials processing and components.

Contributing to Society through Business Activities

Priority Issues

1 Solving Social Issues by Using Opto-electronics Technologies　 P23

2 Challenging toward Innovation　 P27

3 Improving Product and Service Quality　 P35

24Nikon Sustainability Report 2019

Nikon CSR Contributing to Society through Business Activities

Contents /Editorial Policy

Message from the President Nikon Group Profile Strengthening CSR

FoundationResponding to

Environmental Issues Data IndexCorporate Citizenship Activities

Contributing to the Achievement of the SDGs

The Nikon Group has provided value to society by creating long-trusted products and services based on advanced technology under the concept of “Trustworthiness and Creativity” in our corporate philosophy. Opto-electronics and precision technologies, Nikon’s core technologies, form the center of these technical capabilities. In opto-electronics technologies, we have continued to manufacture microscopes to achieve high magnification and resolution since the time of our establishment based on such areas as optical and material technologies, contributing to the development of science. We have also contributed to the development of visual culture by providing highly reliable cameras that are sure to capture lasting moments as well as services that bring joy from images. Communication through images has become popular, and people share their emotions and happiness through pictures every day. In precision technologies, we have realized high precision and high definition for devices such as semiconductors and FPDs based on our proprietary precision measurement and manufacturing technologies and optical technologies, contributing to the development of new technologies and industries. In recent years, technical innovations such as AI and IoT have brought new values and major changes to society, and Nikon has supported such technical innovation. Going forward, the Nikon Group will contribute to people’s happy lives and the development of technologies and

industries to support these happy lives while aiming to embody the determination to “Unlock the future with the power of light” contained in Our Vision and realize a future that is developed by society and companies in partnership. We will also adopt this approach in our Sustainability Strategy (Value Creation Process) and contribute to the achievement of the SDGs. Specifically, while implementing our Medium-Term Management Plan (announced May 2019), we will refine our core competence with a focus on opto-electronics and

precision technologies with the aim of contributing to SDGs Goal 9 “Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.” In addition, as the individual goals of the SDGs are interconnected in complex ways, we believe that actively developing business using Goal 9 as a leverage point will support the achievement of other connected goals like a domino effect and increase our level of contribution to the SDGs overall.

＞Solving Social Issues by Using Opto-electronics Technologies　　＞Challenging toward Innovation　　＞Improving Product and Service Quality

Contributing to Society based on Core TechnologiesIn accordance with our Sustainability Strategy, we will provide new value and contribute to solving social issues through Nikon’s

technical capabilities which are based on opto-electronics and precision technologies.

Providing Value and Contributing to the SDGs through Business

[Core competence]

[Value provided]

Innovating monodzukuri (manufacturing) processes

Contributing to people’s health and

QOL (quality of life)

Making a better society through imaging and

sensing technologies

Products and services that make people happy

Businesses Trustworthiness and Creativity

Contributing to society through business activitiesOpto-electronics

technologies

Precision technologies

25Nikon Sustainability Report 2019

Nikon CSR Contributing to Society through Business Activities

Contents /Editorial Policy

Message from the President Nikon Group Profile Strengthening CSR

FoundationResponding to

Environmental Issues Data IndexCorporate Citizenship Activities

＞Solving Social Issues by Using Opto-electronics Technologies　　＞Challenging toward Innovation　　＞Improving Product and Service Quality

Examples of Products and Services that Contribute to “Forming a Platform for Industrial and Technical Innovation”

Optical Processing Machines Contributing to Monodzukuri (Manufacturing) Innovation

In April 2019, Nikon announced the release of the optical processing machines “Lasermeister 100A,” which performs a variety of metal processing with simple operation. Nikon has long been involved in the development, manufacturing and sales of semiconductor lithography systems known to be the “most precise machinery in history.” By drawing on the technology cultivated for lithography systems, Nikon realized a high quality, smaller sized and less expensive optical processing machines. In recent years, manufacturing sites have been required to implement automation and mass customization against the background of labor shortages caused by the return of production to developed countries and a diversification in individual values. The optical processing machines, which meets the diverse metal processing needs of customers, is a product that can contribute to solving these problems. The Nikon Group has indicated a policy of focusing on the material processing business, including optical processing machines, in our Medium-Term Management Plan. Furthermore, we will continue contributing to industrial development over the long term by expanding the digital manufacturing area, including the material processing business.

Encoders that Support the Evolution of Robots

The encoder is a key part that is mainly embedded in the joint of the moving part of the robot arm to support the precise movement of the robot. The miniaturization and slimming of encoders has brought about the evolution of robots to achieve more complex movements.Using robots in industry raises production efficiency and quality and is also paving the way to the achievement of the smart factory and the eco factory. Moreover, if robots evolve and people are able to work safely even in the same space as robots, robots will be able to make up for labor shortages and take over dangerous work. Using its proprietary technology, Nikon has made miniaturization and high reliability of encoders compatible. Nikon boasts the top share of the global market for encoders for use in robots*. The many Nikon encoders are contributing to the development of people- and environment-friendly production.

*Based on Nikon research

“Lasermeister 100A” (white, black)

A robot with an embedded Nikon encoder

The exterior of the main body (right) and the interior disk (left) of the multi-turn absolute encoder “MAR-M50A”

26Nikon Sustainability Report 2019

Nikon CSR Contributing to Society through Business Activities

Contents /Editorial Policy

Message from the President Nikon Group Profile Strengthening CSR

FoundationResponding to

Environmental Issues Data IndexCorporate Citizenship Activities

＞Solving Social Issues by Using Opto-electronics Technologies　　＞Challenging toward Innovation　　＞Improving Product and Service Quality

Contract cell manufacturing for regenerative medicine

Contract Cell Manufacturing Aiming for the Early Development of Regenerative Medicine

Regenerative medicine regenerates organs and cells to restore lost functions. The use of somatic stem cells as well as iPS cells, promises medical breakthroughs, including treatments for intractable diseases for which a cure is yet to be found. However, commercialization requires creation of quality and safety evaluation standards and establishment of management procedures in manufacturing processes.Nikon has been selling cell culture observation systems since 2007, providing solutions that support quality evaluation for iPS cells. In 2015, we also concluded a strategic business alliance agreement in Japan with Lonza, the world’s largest contract manufacturer for regenerative medicine, and Nikon CeLL innovation Co., Ltd. has been providing contract cell manufacturing services. Nikon will contribute to the commercialization of regenerative medicine in Japan through the expansion of our contract cell manufacturing business leveraging our own technology while incorporating Lonza’s know-how in the area of high quality cell manufacturing technology. Furthermore, Nikon is developing the requisite equipment and consumables for the optimization of high quality cell manufacturing in preparation for major advances in the regenerative medicine market using iPS cells. We will provide total solutions, including hardware and software, from Japan to the world.