Olympus 2006 Annual Report Download - page 10

focusing on the BRICs (Brazil, Russia, India and China), where
rapid economic development and the widespread use of endo-
scopes is clearly anticipated. In particular, we will concentrate
our investment activities on China in order to consolidate our
market competitiveness, aiming to double the sales to ¥20 bil-
lion.
Secondly, we plan to enhance the existing markets for new
technology. As a part of this, Olympus’ endoscopes have
entered a new phase. The use of specific light spectra tech-
nologies, such as Narrow Band Imaging (NBI), enhances the
visibility of capillaries and mucosal tissues.
The next step is to develop new markets with new technol-
ogy, combining flexible endoscopic technology and therapeu-
tic devices to enhance minimally invasive surgery.
In October 2005, Olympus commenced sales in Europe of
capsule endoscopes for examination of the small bowel. This
tiny capsule represents the fruit of Olympus’ micromachine and
imaging technology development. At the moment, Olympus is
considering the development of capsule endoscopes for all
the digestive tracts, including the esophagus, stomach and
large intestine, aiming for an era when we can finally take an
endoscopic examination as easily as we take a tablet.
Olympus is also looking into possible new business alli-
ances. In August 2005, Olympus announced its entrance into
an alliance with Terumo Corporation, a leading company for
diagnostics and treatment devices for the circulatory system.
Through this alliance, Olympus will combine its advanced capa-
bilities in the digestive system and surgical field with Terumo’s
strength in the circulatory system field, merging the technolo-
gies and know-how of each company in an effort to realize
new business vistas for minimally invasive medical care.
Life Science: Challenging the Biotechnology Field
> The Life Science Business increased revenues and earnings
during the fiscal year under review. This business rests on two
pillars: the micro-imaging business centering on microscope
In the 2006 CSP, Olympus aims to establish a business
structure that will create sustainable profitability, while con-
centrating its resources on the digital SLR camera, digital com-
pact camera and optical component businesses and thoroughly
implementing selection and concentration.
Transform the Medical Systems Business
with a Sense of Ur gency
> During fiscal 2006, Olympus saw a steady sales increase in
the Medical Systems Business. Endoscopic procedures have
increasingly spread in light of their accuracy, efficiency and
minimization of burden on patients. With its approximate 70%
share in the global market, Olympus receives rising expecta-
tions every year to perform an ever-greater role in the develop-
ment of the gastroenterological endoscope business.
However, the environment in the Medical Systems Business
is significantly changing around the world, and there is no
rock-solid guarantee that the business we currently enjoy in the
Medical Systems Business will continue to experience steady
growth. To maintain our position and our prosperity in this
area, we must keep a stance of meeting changes with a sense
of crisis: we must not rest on our laurels.
The 2006 CSP sets the key growth strategy in the Medical
Systems Business as the contribution to patient-friendly, mini-
mally invasive treatment based on advanced endoscopic tech-
nology.
Looking ahead over the next three years, we are aiming first
at participation in new markets of existing businesses. We are
528,415 564,343
633,622
813,538
978,127
42,283
62,346 62,997
23,153
62,523
28,564
10,279
24,348
33,564
-11,827
02 03 04 05 06
Net income (loss)Operating income
Net Sales
(Millions of yen)
02 03 04 05 06
Operating Income / Net Income (Loss)
(Millions of yen)
8 OLYMP US 200 6