Olympus 2010 Annual Report Download - page 32

30 OLYMPUS 2010
CONSOLIDATED RESULTS OF OPERATIONS
Net Sales
In fiscal 2010, the fiscal year ended March 31, 2010, total net sales
declined 10.0% from the previous fiscal year to ¥883,086 million
(US$9,812 million). This was attributable to the ongoing downturn in
the global economy and the appreciation of the yen affecting all the
businesses except the Information & Communication Business during
the fiscal year under review.
Sales in the Imaging Systems Business totaled ¥174,924 million
(US$1,944 million), a decrease of 22.1% year on year. In digital camer-
as, sales of the OLYMPUS PEN series interchangeable lens type digital
camera based on the Micro Four Thirds system, characterized by a
compact, lightweight and sophisticated design, were robust. In addi-
tion, the stylish µ[mju:] TOUGH series, which boasts such features as
being water/dust proof, impact-resistant and low-temperature hardy,
were brisk. However, currency exchange rate fluctuations and the
global economic downturn affected results. In the voice recorders
field, lower income was recorded due to the substantial effect of the
sales price drop in the global market and stagnant demand on results
despite a gradual sales recovery in the second half of fiscal 2010.
In the Medical Systems Business, sales fell 8.6% year on year to
¥350,716 million (US$3,897 million). In the medical endoscope field,
sales in the Chinese market expanded, while the number of medical
facilities that adopted the Value per Procedure (VPP) program, a spe-
cial program designed to promote the installation of medical devices
without initial investment, steadily picked up pace both in Japan and
overseas. However, sales of mainstay high-definition endoscopes
were weak on the back of the strong yen and worldwide economic
downturn. In the market for surgical, endotherapy and other devices,
sales of surgical use items and therapeutic devices for sampling,
including biopsy forceps, were healthy thanks to the synergetic
effects of the business integration with Gyrus Group Limited. In addi-
tion, there were good sales in overseas markets for new products in
the lineup of disposable guidewires for pancreaticobiliary duct endo-
therapy jointly developed with Terumo Corporation as well as a new
item in our lineup of instruments for laparoscopic surgery, which,
compared with abdominal surgery, helps reduce the burden on
patients. Nevertheless, the overall results in surgical, endotherapy
and other devices decreased due to the impact of foreign exchange
rate fluctuations.
Sales in the Life Science Business dropped 32.6% to ¥80,100 mil-
lion (US$890 million). In the micro-imaging (microscope) field, sales of
biological microscopes, such as FLUOVIEW series confocal laser
scanning microscopes for research use, were brisk in Japan. Sales of
industrial microscopes, however, were substantially affected by
decreased corporate capital investment, mainly in the first half of the
fiscal year under review. Foreign currency exchange fluctuations also
negatively impacted the entire micro-imaging field, resulting in
decreased income. Moreover, the sale of the Company’s diagnostic
system business to a U.S. Beckman Coulter, Inc. Group company in
August 2009 became a cause of further depressed income in the Life
Science Business.
The Information & Communication Business recorded sales of
¥189,354 million (US$2,104 million). This represented a 23.8%
increase from the previous year. The improvement was attributable to
the aggressive efforts to expand mobile handset sales network
through M&A activities in the mobile handset sales business.
In the Others business, sales totaled ¥87,992 million (US$978 mil-
lion), down 12.7% year on year. In the non-destructive testing equip-
ment field, a new industrial microscope in the IPLEX L series, which
boast excellent operability, functionality and durability, and a new
ultrasonic flaw detector with phased-array functions enjoyed healthy
sales. However, the cutback in capital investment in the automobile
industry affected overall performance in this field. In the information
equipment field, sales declined due to the stagnant economy, despite
the strong performance of a new product in the high-speed inkjet
printer lineup. In the biomedical materials field, sales of OSferion arti-
ficial bone replacement material grew both in Japan and overseas,
while other products saw steady growth in sales amid the Company’s
efforts to reduce initial costs. During the fiscal year under review, a
portion of the Information & Communication Business was trans-
ferred to the Others business.
Net Income
On the earnings front, the Olympus Group’s performance was sub-
stantially affected by the decrease in sales due to the appreciation of
the yen. Despite the negative impact, operating income surged 73.9%
year on year to ¥60,149 million (US$668 million), reflecting the
Company’s efforts in reducing costs of sales and selling, general and
administrative expenses.
FINANCIAL REVIEW
Net Sales
(Millions of yen)
06 07 08 09 10
1,128,875
980,803
883,086
978,127
1,061,786
28,564
Net income (loss)
Operating income
Operating Income/Net Income (Loss)
(Millions of yen)
06 07 08 09 10
98,729
112,623
62,523 57,969
34,587
60,149
–114,810
47,763
47,799
Equity
Total assets
334,210 356,351
290,656
Total Assets/Equity
(Millions of yen)
06 07 08 09 10
1,091,800
1,358,349
161,364 209,432
1,106,318 1,152,227
976,132