Olympus 2012 Annual Report Download - page 33

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Q9
Finally, what is your message to
stakeholders?
>>> R&D Investment and Capital Expenditures
Since Olympus is a manufacturing company, I believe that investment in the future is extremely important.
Even as we strive for rigorous cost reductions and profitability improvements, we will step up investment in
technology development and facilities and make strategic moves for future growth. We plan to invest 7% of
net sales in R&D on an ongoing basis. Although we will allocate the appropriate capital to each business
sector, we plan to increase the share of investments in the Medical Business, a growth sector, by three
percentage points in fiscal 2017.
We plan to maintain capital expenditures at 3% of net sales. We plan to increase the CAPEX share of
the Medical Business by eight percentage points in fiscal 2017 in step with the expansion of the surgical
devices business.
Through these various reforms, Olympus will succeed in returning to profitability by fiscal 2013.
We aim to achieve net sales of ¥1,160 billion, operating income of ¥130 billion, and an operating
margin of approximately 11% within five years, by fiscal 2017. I believe the key to the revitalization of
Olympus will be how earnestly we implement and achieve this medium-term vision.
Olympus is a profoundly earnest company, and our employees exhibit great honesty and integrity.
For this reason, I am convinced that we will not fail to achieve our financial plans if all our Olympus
employees share in the aspirations of the medium-term vision and devote themselves wholeheartedly to
implementing the plan.
I promise to revitalize Olympus without fail and to meet the expectations of our shareholders and
other stakeholders. I urge you to have high expectations of the reborn Olympus.
Net sales ¥848.5 billion ¥920.0 billion ¥1,010.0 billion ¥1,160.0 billion
¥35.5 billion
4%
¥50.0 billion
5%
¥90.0 billion
9%
¥130.0 billion
11%
Operating income
(Operating margin)
FY2012 Results FY2013 Plan FY2015 Plan FY2017 Plan
¥17.9 billion
2%
¥21.0 billion
2%
¥70.0 billion
7%
¥115.0 billion
10%
Ordinary income
(Ordinary income ratio)
−¥49.0 billion
-6%
¥7.0 billion
1%
¥40.0 billion
4%
¥85.0 billion
7%
Net income
(Net income ratio)
¥80.3 billion
9%
¥95.0 billion
10%
¥140.0 billion
14%
¥185.0 billion
16%
EBITDA
(Net sales ratio)
Exchange rates: US$1 = ¥80, 1 EUR = ¥100
Financial Plans
A
Note: These figures include the Information & Communication Business, however, Olympus has resolved to transfer the business
to Japan Industrial Partners, Inc., on August 24, 2012. The transfer will be carried out on September 28, 2012.
OLYMPUS 󱚈 Annual Report 2012 31