Olympus 2014 Annual Report Download - page 8

Interview with the President
The digital camera market continues to shrink, creating a harsh environment for the Imaging Business.
What are the Company’s plans for the future of this business?
There are technological synergies between the Imaging Business and the Medical Business and between
the Imaging Business and the Scientifi c Solutions Business, and I therefore believe that there is signifi cant
meaning to the existence of the Imaging Business. However, I also realize that, if we are going to continue
this business, we will have to make sure it can generate stable profi ts.
An important role of the Imaging Business is to create
state-of-the-art imaging technologies that can be applied
to the Medical Business and the Scientifi c Solutions
Business. It is the short product cycles and intensely
competitive environment, populated by countless rivals,
ofthe Imaging Business that bring these technologies into
existence. When the digitization trend began, the camera
business was among the fi rst to be affected. Since then,
the Imaging Business has continued to stand at the fore-
front of technological innovation, driving the advance of
digital imaging technologies throughout the entire
Company. Looking at Olympus as a whole, I believe that
continuing to place the Imaging Business in this role will
allow for technologies to be developed in the most effi cient
manner. The development cycle for gastrointestinal endo-
scopes is fi ve to six years. Accordingly, the imaging
technologies used in these products are already old by
the time they reach the market, meaning that it is diffi cult
to determine how far technology has advanced by looking
atmarketed products alone. However, Olympus is always
in possession of the latest digital imaging technologies.
Just as we were among the fi rst to make the jump from
fi berscopes to videoscopes in the endoscope fi eld, we will
continue to create world-leading products by utilizing the
technologies born out of the Imaging Business. In this
manner, I believe the Imaging Business will help Olympus
to maintain its dominating market shares.
At the same time, I also realize that the Imaging Business
cannot be allowed to continue recording losses. We must
restructure this business to make sure it can generate stable
profi ts over the medium-to-long term. We will accomplish this
by cutting costs and shifting our product portfolio toward
high-margin mirrorless cameras. On a monetary basis, the
mirrorless camera market is expanding steadily, and we can
at least expect this market to continue growing over the next
several years. Nonetheless, the mirrorless camera market
does present risks when looked at from a long-term per-
spective. For this reason, we plan to gradually transition the
Imaging Business toward the growing business-to-business
market. We expect to see business opportunities in various
fi elds for the Company’s advanced optical and imaging tech-
nologies. In fact, we are already seeing potential customers
to be served with these technologies in the Medical Business
and the Scientifi c Solutions Business.
Q
A
6
In closing, is there a message you would like to convey to the stakeholders of Olympus?
Olympus is a company that fi nds its strength in its technologies, and that will not change. It is our
technologies that have enabled us to survive until today, and I am convinced that these technologies
will also help us fi nd new potential centered on the Medical Business.
The markets for the products of the Medical Business
continue to grow, and there are no indications of this trend
coming to an end. Olympus is able to cater to these
markets with its strength in digital technologies. The
Company can also call upon its ability to combine its tech-
nologies with its expertise while making minute adjustments
for the perfect match, a characteristic of the Japanese
manufacturing industry that could be considered an analog
technique. Olympus remains today because it continues to
pass these techniques on from one employee to another,
and I am convinced that this tradition will also ensure the
Company’s survival into the future. It is that perspective we
will adopt as we advance technological development and
work to beat out the competition.
In addition, our operations in the industrial fi eld
represent very high potential markets in which we have
very strong positions. For example, our non-destructive
testing technologies are expected to become increasingly
important going forward. Demand for these technologies
isgrowing along with global infrastructure demand, which
continues to rise due to the accelerated installation of infra-
structure that is accompanying economic development in
emerging countries as well as the aging of roads, buildings,
and other infrastructure in developed countries. Moreover,
non-destructive testing equipment like ultrasonic fl aw
detectors and industrial videoscopes employ technologies
similar to those used in the Medical Business. For this
reason, we aim to take advantage of growth opportunities
while utilizing these technologies.
We will boldly push forward with aggressive manage-
ment, paving the road toward meeting the goals of the
medium-term vision, and realizing the growth that waits
beyond, with strategic measures to overcome the obstacles
placed before us. As we work to expand earnings and grow
further, we will maintain our uncompromising stance toward
excellence in terms of technologies and product creation,
banding together to continue introducing the world to new
and innovative products that are top in their class. I am
confi dent that we will be able to show our stakeholders
results that live up to their expectations in the future.
August 2014
Q
A
7
Another major advantage of Olympus is the ability to
leverage synergies with its area of specialty: imaging equip-
ment. Our strategies entail that we utilize this advantage to
expand our market share centered on the energy device
fi eld, which will be a major growth driver in the surgical
device fi eld. Inaddition, our differentiated THUNDERBEAT
energy device features leading technologies in its fi eld.
Going forward, we plan to strengthen sales systems for
surgical imaging equipment, while leveraging our existing
sales channels, and thereby support physicians in develop-
ing new surgical techniques. Atthe same time, we will
actively expand our participation in the surgical device
market by bolstering our product lineup, possibly introduc-
ing products geared toward procedures requiring opening
the abdominal cavity and other treatments.
THUNDERBEAT Features—
Comparison of Effectiveness
THUNDERBEAT
Ultrasonic devices
High-frequency devices (bipolar type)
Vessel sealing Precise dissection
Tissue graspingHemostasis
Incision speed
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OLYMPUS Annual Report 2014
12 OLYMPUS Annual Report 2014
Hiroyuki Sasa
President and Representative Director