Olympus 2012 Annual Report Download - page 32

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>>> Current Financial Conditions and Targets
The equity ratio decreased from 11% at the fiscal 2011 year-end to 4.6% at the fiscal 2012 year-end. In
view of global economic trends, that include the European economic crisis and yen appreciation, the current
operating environment is highly adverse, and one of the most important management tasks is to rapidly
restore a stable financial position. Our immediate aim is to swiftly achieve an equity ratio of approximately
10% by further strengthening our businesses and financial position.
Our target is an equity ratio of 30% or more at the end of fiscal 2017, and one initiative to achieve
this target is the streamlining of assets through the rapid sale of idle property, plant and equipment and
inventory reduction. In addition, we will allocate cash flows generated by our businesses to the repayment
of interest-bearing debt. In this way, we will nearly halve interest-bearing debt to approximately ¥300
billion by fiscal 2017.
Capital Allocation (R&D, CAPEX, Shareholder Returns)
Continue to invest to promote growth, with particular focus on the Medical Business,
and aim for rapid resumption of dividend payments and higher shareholder returns.
Maintain the ratio of R&D expenses to consolidated
net sales at the 7% level
Increase the composition ratio of the Medical
Business by 3 points
Maintain the ratio of CAPEX to consolidated net sales at
the 3% level
Increase the composition ratio of the Medical Business
by 8 points
R&D Investment CAPEX
(Billions of yen) (Billions of yen)
Ratio of R&D
expenses to
net sales
100
75
50
25
0
40
30
20
10
0
FY2013 FY2015 FY2017 FY2013 FY2015 FY2017
7.0%
59% 61% 62% 60% 61%
68%
7.1% 7.0% Ratio of CAPEX
to net sales 3.6% 3.3% 3.2%
Medical
Imaging
Life Science & Industrial
Others
Medical
Imaging
Life Science & Industrial
Others
President Hiroyuki Sasa Discusses the Medium-Term Vision: Back to Basics
OLYMPUS 󱚈 Annual Report 2012
30