Nikon : Second Quarter Presentation Material

Financial results for the 2nd quarter of the year ending March 31, 2023

November 10, 2022

NIKON CORPORATION

1. Topics on progress of the Medium-term Management Plan
2. Financial results for the 2nd quarter of the year ending March 31, 2023
3. Forecast for the year ending March 31, 2023

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The Medium-Term Management Plan is off to a successful start with concrete progress in Strategic Businesses

Overview of the Medium-Term Management Plan

Source: Medium-Term Management Plan slide deck

Where we will be in 2025

Providing Products and Services optimized to meet our customer needs

Direction for the entire company

Strengthen delivery of integrated solutions to grow the business in a stable manner, expand both revenues and profits, and continually generate social and economic value

Sustain "Main Businesses"

Expand customer interactions and

Imaging Precision the value delivered to secure stable

Equipment

revenues

Scale earnings in "Strategic Businesses"

Healthcare	Components		Create new value with customers in
Digital Manufacturing		promising markets and areas of
	differentiation

FY2025 financial targets

Revenue JPY 700Bn

Operating margin 10%+

ROE 8%+

Management base

Advance sustainability strategy, human capital management, and DX with a focus on customers and employees

Create synergies across a shared value base that spans technology and manufacturing

Highly transparent management with enhanced corporate governance

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Progress in the Digital Manufacturing Business

• Strategic Investment

Strategic Investments announced in 1H

Company	Country	Size of	Mean of providing
investment	values

SLM Solutions	Germany	Total €622MM	End product
			Invested	Metal additive
			approx. 7.3％	Manufacturing
			and TOB in
			progress
Hybrid		USA	Minority	Component
Manufacturing				Detachable head for
Technologies				machine tool
				(One system capable of
				both additive/subtractive
				machining and metrology/
				inspection)
Optisys		USA	Minority	Customer
				High-speed
				communication
				antenna
				for aerospace and
				government agencies

Aiming to build a new ecosystem in the digital manufacturing (material processing) field.

Sales promotion

Source: Medium-Term Management

Capitalize on New Markets Plan slide deck by Combining Unique Value Propositions

	Value	Additive processing	Removal processing	Riblet	vision-Robo
	proposition
Methods of value
delivery
End products

Components

Contract

processing

Target customers

Semiconductor

Energy Aerospace Automotive Telecom & Electronic

components

4

the shares capital

on fully diluted basis）

Status of SLM Solutions Group AG ("SLM") acquisition

Transaction Schedule					Source Presentation material
				released on Sep. 2, 2022
September 2, 2022	End of September	End of October	Mid November	Jan. - Jun. 2023
					Potential
					delisting

• Agreement on direct capital investment
• Irrevocable undertakings agreed with 3 key shareholders
• Announcement of intention to launch public takeover offer

•	Publication of the	• End of the	• End of the additional	• Closing of the
	offer document	acceptance period	acceptance period	public takeover offer(1)(2)
•	Start of	(4 weeks)	(2 weeks)
	acceptance period			Note 1. Long-stop date is 12 months
				after the end of acceptance period
				Note 2. Subject to regulatory approvals
				and other customary conditions

Actual Status (Dates given are German time.)

• Completed direct capital investment on Sep. 9 （2.3 million shares,
  approx. 9.1%, approx. 7.3% on fully diluted basis）

•	Publication of the	• End of the
	offer document	acceptance period
	⇒ Done on Sep. 30	⇒ Done on Nov. 1
•	Start of	（secured 86.17％ of

acceptance period

• Started on Sep. 30

• End of the additional	• Closing of the
acceptance period	public takeover offer
⇒ Nov. 5 to Nov. 18	⇒ Approvals for overseas
(expected)	investment in several
	countries are expected
	to be completed
	by Mar. 2023

The transaction is going steady in line with initial schedule.

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