Olympus 2006 Annual Report Download - page 17

> The Imaging Systems Business handles digital cameras, film cam-
eras, voice recorders, and optical components.
In fiscal 2006, ended March 31, 2006, net sales were down
8.3% to ¥254,541 million (US$2,213 million) compared with
the previous fiscal year, while operating income recovered profit-
ability of ¥4,792 million (US$42 million) from the ¥23,875 mil-
lion operating loss recorded in the previous fiscal year. This was
attributed to Olympus’ strong efforts to develop profit-oriented
business management based on business strategies aimed at the
creation of sustainable profitability. Olympus strives to implement
selection and concentration of business and reduce overall costs,
including production costs and inventories. In addition, Olympus
commenced all-function reform based on the establishment of a
product platform.
D I G I T A L C A M E R A S
> Sales of digital cameras decreased 8.1% year on year to
¥228,884 million (US$1,990 million). Amid the prolonged inten-
sifying market competition in the compact camera field, Olympus
engaged in the improvement of product capability. During the
fiscal year under review, Olympus launched the new small and
slim μ710 and the μ720SW (Stylus 710 and Stylus 720SW in
the U.S.), which is shock resistant and waterproof to a depth of
three meters. They have received very favorable reviews from
the market. Despite a decrease in sales volume from the previ-
ous fiscal year, Olympus succeeded in recovering profitability,
due to its concerted efforts to implement profit-oriented business
management based on business strategies aimed at the creation
of sustainable profitability.
In the single-lens reflex (SLR) camera field, sales were brisk due
to the launch of a zoom kit for the E-500 (EVOLT E-500 in the U.S.)
that boasted small size and light weight. The E-330 (EVOLT E-330
in the U.S.), launched in February 2006, also got into the news
with its epoch-making Full-Time Live View function. Furthermore,
Olympus made full-scale entry into the external sales business of
digital camera lens barrels that enjoy a high market evaluation
due to their high quality. Olympus is striving to establish a solid
foundation in the lens barrel field, further expanding its business
in the optical components field.
V O I C E R E C O R D E R S / F I L M C A M E R A S
> Sales of voice recorders and film cameras were down 10.5% from
the previous fiscal year to ¥25,657 million (US$223 million).
Olympus experienced a revenue increase in the voice recorders
field, owing to the launch of a new product in its popular Voice-
Trek series. Overseas, the VN series experienced favorable sales
and market share in the United States and Europe, contributing to
the overall sales increase in this segment.
The film camera market continued to shrink domestic and over-
seas, causing the sales decline.
O U T L O O K F O R F I S C A L 2 0 0 7
> Olympus announced a new business strategy in November 2005,
and will create sustainable profitability with thorough implemen-
tation of selection and concentration with powerful opto-digital
technology as its core. In particularly, Olympus will aim to rebuild
its business foundations in both product manufacturing and busi-
ness operations by accelerating its efforts for Platform Reform. In
light of this, Olympus forecasts ¥268 billion of net sales and ¥10
billion of operating income in the fiscal year ending March 31,
2007.
Imaging
Systems
Business
Sales
(Millions of yen)
05
Overseas sales
Domestic sales
277,685
28,788
248,897
06
254,541
25,720
228,821
I M A G I N G S Y S T E M S
B U S I N E S S
OLYM PUS 20 06 15