Olympus 2015 Annual Report Download - page 21

About Energy Successes
THUNDERBEAT has delivered tremendous success in the U.S. market. We grew approxi-
mately 20% year on year overall, not an easy feat in the U.S. marketplace given the
heightened competitive environment. Olympus successfully installed many generators into
the market thanks to the efforts of our sales force, growing our overall THUNDERBEAT
handpiece revenue by approximately 40%. Most importantly, we’ve had our first line
extension—the Open Extended Jaw (OEJ). The feedback on the design and perfor-
mance from surgeons has been fantastic. In our initial product launch support study,
80% of the surgeons felt OEJ was more ergonomic than their existing energy device.
Surgeons also reported that OEJ has a more multifunctional design and reduces the
need for instrument exchanges for grasping or dissecting instruments.
In fiscal 2016, we are excited to introduce our PK Technology advanced bipolar
portfolio onto the THUNDERBEAT generator. With the launch of our PK devices, Olympus
now has a true universal platform that supports all of the common forms of energy
utilized in the operating room today. Olympus’ universal platform allows customers to
increase efficiencies while reducing costs—two key objectives for healthcare leaders in
this environment.
In addition to our strengthened energy portfolio, Olympus has made significant invest-
ments in resources for sales and marketing to support the business. This includes four
new Business Unit Vice Presidents (BUVPs)—one for each surgical business area—who
have a wealth of business, sales, and marketing expertise. The BUVPs will have full
responsibility and accountability to drive, implement, and optimize sales and marketing
strategies at their respective businesses, and represent our efforts to empower each
surgical specialty to concentrate their efforts on growing each business. Such invest-
ments will be focused on launching new products, enhancing our value proposition, and
building clinical relevance while driving and meeting
demand in the field to evaluate the portfolio.
With the investments we have made over the
last year coupled with our growing energy portfolio,
Olympus is in a very strong position to convert
market share in the coming year.
Field Representative Brian Christie Speaks to
His Sales Strategy During a National Sales Meeting
I work hard to build relationships with our customers to make the sale. By working
within the offices and building relationships with the surgical techs and nurses, I get an
understanding of what the bariatric surgeons in that account are looking for. Then, when
I get to the operating room, I can talk to the devices based on what I’ve been told by the
techs and nurses. Once the surgeons understand what the device does, I schedule
follow-up appointments to bring in the technology so they can try it firsthand.
Observing the first few physician cases not only betters my understanding of how
the physician operates, but also shows the physician I’m genuinely interested in his or
her procedure and technique. I choose to engage the physician by asking impactful
questions to build our relationship so that I become a trusted professional in the room
instead of just a visitor.
Manisha Shah-Bugaj
Executive Director,
Marketing Surgical Energy &
LESS for Olympus America Inc.
Brian Christie
Energy Territory Manager
for Olympus America Inc.
Revenue Growth:
THUNDERBEAT
Unit Growth:
THUNDERBEAT Disposables
(handpiece)
THUNDERBEAT Open Extended Jaw for
open surgery
Review of Business Segments
TOPICS
Haruo Ogawa
Scientific Solutions & Imaging Business,
Business Management Officer
We are pushing forward with business restructuring
to improve capital efficiency and maximize earnings.
By expanding the earnings of the Scientific Solutions Business and breaking
even in the Imaging Business, we aim to maximize Olympus’ earnings. To
accomplish these objectives, we are pushing forward with business
restructuring in both of these businesses. In addition, under the new
organizational structure, we are working to improve business efficiency by
allocating management resources in an optimal manner. Specifically, we will
concentrate resources on fields in the Scientific Solutions Business in which
we can expect high levels of growth while greatly reducing the amount of
resources assigned to the Imaging Business.
Scientific Solutions / Imaging Business
Global Market Share (As estimated by the Company)
Others Others OthersOthers
Olympus
40%
Olympus
40%
Olympus
30%
Olympus
25%
Operating Environment and Forecasts (Scientific Solutions)
Improvements in the business environment are evident, as
supported by the execution of budgets at domestic and over-
seas research and private-sector companies, as well as a
recovery trend in capital expenditures. These positive trends
stem from an increase in business confidence on a global
scale and the depreciation of the yen, a result of the economic
stimulus measures instituted by the Japanese government.
In the medium to long term, we expect to see the acceleration
of advanced research on topics such as induced pluripotent
stem cells (iPS cells) as well as a push for the practical appli-
cation of regenerative medicine in the area of life science
research. In addition, infrastructure investment is projected to
increase in emerging countries in conjunction with economic
development. The market for Scientific Solutions Business
products is anticipated to expand as a result of these factors.
The Scientific Solutions Business is easily influenced by
macro-economic trends. Accordingly, the recovery in capital
expenditures stemming from improvements in business con-
fidence centered on North America is anticipated to contribute
to growth in earnings, particularly with regard to operations in
the industrial field. Nonetheless, we are working to create a
business structure that can guarantee stable profits without
being heavily influenced by such factors in the external operating
environment. By advancing this type of business restructuring,
we aim to improve business efficiency and reinforce our earn-
ings foundation. At the same time, we will invest in growth fields
over the medium to long term to expand earnings going forward.
Operating Environment and Forecasts (Imaging)
The compact digital camera market is rapidly contracting
due to the spread of smartphones, and the Imaging Business
continues to face a harsh operating environment as a result.
In order to address this major market change, we are pushing
forward with structural reforms to shrink the Imaging Business
to a more appropriate scale. As one facet of this undertaking,
we have developed conservative sales plans with a narrower
scope, only including focus products and market segments,
that do not presume the pursuit of sales growth, even in the
core mirrorless camera market. We aim to minimize risks
through this limited scope. In conjunction with this shift in
focus, we are revising cost structures to realize a business
structure that will enable the Imaging Business to break even,
despite the reduced sales. We are also enhancing earnings
structures by strengthening sales of high-margin interchange-
able lens products.
* Figures for mirrorless cameras are from the domestic market only
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OLYMPUS Annual Report 2015
38 OLYMPUS Annual Report 2015
Performance and Strategies by Business
2012/3 2013/3 2014/3 2015/3
CAGR 36%
2012/3 2013/3 2014/3 2015/3
CAGR 78%
Biological microscopes Industrial videoscopes Non-destructive testing
equipment Mirrorless cameras*