Olympus 2008 Annual Report Download - page 17

> Core products in the Medical Systems Business include
both gastrointestinal and surgical endoscopes, endo-
therapy devices and endoscopic ultrasound systems.
Sales in the Medical Systems Business in fiscal 2008
rose 13.3% year on year to ¥353,269 million (US$3,364
million), while operating income grew 12.0% to ¥98,420
million (US$937 million). The increase in revenue and
earnings was attributable to strong sales of gastro-
intestinal endoscopes and surgical and endotherapy
products.
In February 2008, Olympus acquired the U.K.-based
medical equipment company Gyrus Group PLC (Gyrus).
This was to ensure Olympus’ further business growth
and firm earnings capability with endoscope systems
that enable observation using specific light spectra.
These endoscope systems are highly regarded in Japan
and overseas. In addition, Olympus is making prepara-
tions to expand its surgical and endotherapy product
businesses based on this acquisition.
GASTROINTESTINAL
ENDOSCOPES
> Sales of gastrointestinal endoscopes increased 11.0%
from the previous fiscal year to ¥237,366 million
(US$2,261 million). In Japan, sales in this business
were driven by favorable demand for the EVIS LUCERA
SPECTRUM endoscope system; during endoscopic
observation, NBI enhances visualization of the capillary
network morphology. In addition, sales of slim, upper
gastrointestinal videoscopes, which can be inserted
either through the nasal tract or the mouth, were brisk.
Overseas, sales of the EVIS EXERA II high-resolution
HDTV endoscope system that also features imaging
using specific light spectra were strong in the United
States, Europe, Oceania and Latin America. This resulted
in the revenue increase. In 2007, Olympus introduced
a capsule endoscope for the small bowel in the United
States, while orchestrating the simultaneous worldwide
release of the Single Balloon Enteroscope System. With
these efforts, Olympus has successfully cultivated new
fields—ranging from diagnosis to treatment in small
bowel diseases—through comprehensive business
development.
Medical Systems
Business
MINI M ALLY INVAS I VE
PRODUCTS
> Sales of minimally invasive products expanded 18.4%
year on year to ¥115,903 million (US$1,104 million). As
for endotherapy devices, Olympus saw domestic and
overseas sales increases for products including: clipping
devices for hemostasis; biopsy forceps; the disposable
guide sheath kit used to collect specimens in the
respiratory organs that was released in August 2007; and
pancreaticobiliary duct endotherapy devices such as
guidewires. Overseas, sales of the EVIS EXERA II high-
resolution HDTV endoscope system were favorable in
the surgical field. In Asia, Olympus commenced sales of
the VISERA Pro system. In the United States and Europe,
sales of high-definition videoscopes for abdominal
and chest cavities repeated the strong performance of
the previous fiscal year. As a result, Olympus recorded
increased revenue in this business.
OUTLOOK FOR
FISCAL 2009
> For medical endoscopes, Olympus is projecting ongoing
strong sales of the endoscope systems equipped with
functions for observations using specific light spectra.
In conjunction with this, Olympus is aiming to expand
and reinforce its business foundation in the minimally
invasive products field through the synergistic effects
arising from the acquisition of Gyrus. The business
integration with Gyrus is also expected to bring broader
product lineups and sales networks. In addition,
Olympus will continue to focus on its high-value-added
hospital management solutions business. In the fiscal
year ending March 31, 2009, Olympus is forecasting
sales of ¥400 billion and operating income of ¥100
billion in this business, despite the expectation of a
pronounced effect from foreign currency exchange rate
fluctuations.
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