Olympus 2009 Annual Report Download - page 32

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CONSOLIDATED RESULTS OF OPERATIONS
Net Sales
In fiscal 2009, the fiscal year ended March 31, 2009, total net sales
declined 13.1% from the previous fiscal year to ¥980,803 million
(US$10,324 million). This was attributable to the downturn in the
global economy in the second half of the fiscal year under review as
well as a rapid appreciation of the yen.
Sales in the Imaging Systems Business totaled ¥224,460 million
(US$2,363 million), a decrease of 30.0% year on year. In digital camer-
as, sales of the µ[mju:] TOUGH series, which boasts the three major
features of being waterproof and dust proof, shock resistant and hav-
ing high load capacity as well as guaranteed operability in low-
temperature conditions, were robust. During the fiscal year under
review, Olympus released the E-30 and E-620 digital SLR cameras
with the Art Filter function to enable greater creativity in picture tak-
ing. However, currency exchange rate fluctuations and the global eco-
nomic downturn affected results. In the voice recorders field, sales of
the Voice-Trek V series were brisk in the first half of fiscal 2009 thanks
to their “separate design,” which allows direct PC connectivity.
However, sales were impacted by the global economic recession in
the second half of the fiscal year.
In the Medical Systems Business, sales grew 8.7% year on year to
¥383,828 million (US$4,041 million). In the medical endoscope field,
sales of high-definition videoscopes were robust both in Japan and
overseas. In the market for surgical, endotherapy and other devices,
the VISERA Pro multi-compatible endoscopic video imaging system to
support endoscopic surgery contributed to the domestic sales
increase, while pancreaticobiliary duct endotherapy devices, includ-
ing guidewires, as well as gastrostonomy catheters for infusing nutri-
ents directly to the stomach also saw expanded sales. Overseas, sales
of operation room integration and therapeutic devices for sampling,
including biopsy forceps, were favorable mainly in North America. In
addition, sales recorded by Gyrus Group Limited, a U.K. medical
equipment company acquired and included in the Group’s scope of
consolidation in February 2008, contributed to the sales growth.
Sales in the Life Science Business declined 9.6% to ¥118,819 mil-
lion (US$1,251 million). In the micro-imaging (microscope) field, sales
of biological microscopes, such as for educational applications in
Japan and FLUOVIEW series confocal laser scanning microscopes in
the United States, were brisk. Sales of industrial microscopes, howev-
er, were substantially affected by decreased capital investment in the
automobile and semiconductor industries against the backdrop of the
weak economy. In the diagnostic systems field, sales of small and
medium-sized automated chemistry analyzers grew mainly in the
United States and Europe, while demand for reagent and consumable
supplies for blood transfusion use were favorable. Domestic sales,
however, were stagnant.
The Information and Communication Business recorded sales of
¥188,954 million (US$1,989 million). This represented a 25.7%
decrease from the previous year. The decline was attributable to the
prolongation of the consumer upgrade cycle for mobile phones due to
a change in telecommunications companies’ retailing system as well
as weaker demand reflecting economic deceleration.
In the Others business, sales totaled ¥64,742 million (US$682 mil-
lion), down 6.5% year on year. In the non-destructive testing equip-
ment field, ultrasonic testing equipment with phased-array functions
enjoyed healthy sales. However, decreased sales of industrial endo-
scopes due to a cut in capital investment by manufacturers affected
the overall performance in this field. In the information equipment
field, Olympus launched a new product in the high-speed inkjet print-
er lineup manufactured through a business alliance with Riso Kagaku
Corporation. Sales of existing products were also strong during the
fiscal year under review. In the biomedical materials field, sales of
OSferion artificial bone replacement material grew, reflecting the
commencement of insurance coverage for bone transplantation in
Japan. This product’s sales launch in Europe and China also contrib-
uted to the positive results.
Net Income
On the earnings front, the Olympus Group’s performance was sub-
stantially affected by the decreased sales in the Imaging Systems
Business, the appreciation of the yen and higher depreciation costs
due to the business integration with Gyrus and other factors related
to consolidated subsidiaries. The Imaging Systems Business and
Others business declared operating losses, while the Medical
Systems, Life Science and Information and Communication
Businesses recorded lower operating income. As a result, consolidat-
ed operating income dropped 69.3% year on year to ¥34,587 million
(US$364 million).
Financial Review
Net Sales
(Millions of yen)
05 06 07 08 09
1,128,875
980,803
813,538
978,127
1,061,786
28,564
Net income (loss)
Operating income
Operating Income/Net Income (Loss)
(Millions of yen)
05 06 07 08 09
98,729
112,623
23,153
62,523
–11,827
57,969
34,587
–114,810
47,799
Equity
Total assets
334,210 356,351
240,837 290,656
Total Assets/Equity
(Millions of yen)
05 06 07 08 09
1,091,800
1,358,349
161,364
1,106,318
858,083
976,132