Olympus 2012 Annual Report Download - page 5

Summary of Fiscal 2012
Fiscal 2012, the year ended March 31, 2012, was a year of turmoil
for Olympus in which a change of top management, issues related to
the deferral of losses, correcting prior financial results, the designation
of Olympus shares as “securities on alert” by the Tokyo Stock
Exchange, an overhaul of the management structure, and other
matters posed the most serious crisis ever faced by Olympus since
its founding.
Olympus absorbed the impact of these issues, as well as the
impact of numerous external factors, such as worldwide deterioration
in business confidence, further yen appreciation, the Great East
Japan Earthquake, and the flooding in Thailand, and recorded
full-year net sales and operating income at the prior-year’s level.
Nevertheless, at a time of further acceleration of structural reforms,
we posted a net loss for the year after recording a loss due to
rigorous revaluation of assets and other items. For this reason,
unfortunately, Olympus decided not to pay a year-end dividend for
fiscal 2012.
On the other hand, we were able to introduce major new
products in the Medical, Life Science & Industrial, and Imaging
business in fiscal 2012. In this way, we are already steadily
implementing strategic moves that can be expected to contribute to
business performance in fiscal 2013 and beyond. In fiscal 2013, the
first year under the new management structure, we will strive to
return to profitability.
Medium-Term Vision: Back to Basics Launches a New
Olympus under a New Management Structure
At the Extraordinary General Meeting of Shareholders held on April
20, 2012, Olympus received a vote of confidence from shareholders,
and a new management structure was launched. The new management
team is entrusted with the mission to repair the damage done to the
Olympus brand and restore the trust of stakeholders as soon as
possible. To that end, we will make fundamental reforms to the
management framework to ensure that such issues never recur.
In the medium-term vision announced in June 2012 under the
new management structure, we have set forth drastic structural
reforms of the business. As expressed by the slogan “Back to Basics”
under the medium-term vision, Olympus will rigorously focus on our
core businesses—Medical, Life Science & Industrial, and Imaging—
and implement fundamental reforms that extend to the cost structure
and production structure. These reforms differ essentially from
short-term profit improvement measures. We are set to reach the
objectives of the medium-term vision, create a new Olympus, and
achieve the transformation necessary to become a stronger business
with a stronger financial structure.
Finally, to restore trust and increase corporate value as soon as
possible, Olympus is already implementing a thorough overhaul of
corporate governance. Our employees around the world will work in
unison and bring to bear all of the Group’s intelligence and wisdom
to resurrect Olympus and increase corporate value and shareholder value.
We offer sincere apologies to our stakeholders for the concerns caused related
to Olympus’ deferral of losses on past investments.
Hiroyuki Sasa
President and Representative Director
Yasuyuki Kimoto
Chairman
OLYMPUS 󱚈 Annual Report 2012 3