Olympus 2011 Annual Report Download - page 13

OLYMPUS 2011 11
science field, we also see growth potential in the area
of non-destructive testing and measurement (visual
inspection) devices in the industrial systems field.
Will you aim for more M&A in
Olympus’s core Medical Systems Business?
A: As for future M&A activity, we will remain open and
flexible. However, we invested ¥260 billion in the acquisi-
tion of Gyrus back in 2008, so I think we need to devote
our efforts to achieve organic growth at this moment
and to maximize our return from that investment. The
purchase of Gyrus resulted in a significant expansion of
our sales network in the minimally invasive treatment
field. And through the acquisition of Gyrus, we are
consolidating our core foundation of “manufacturing” to
improve earnings capability.
Before initiating further large M&A opportunities, we
need to invest in R&D to strengthen existing businesses.
Therefore, I personally think that Olympus does not need
to carry out any large M&A activity during fiscal 2012.
There is an opinion that Olympus
should accelerate the consolidation of
Gyrus. What do you think about it?
A: Absolutely. In order to realize synergies from the
acquisition of Gyrus, we appointed the person who was
previously managing the manufacturing of our surgical
products in Europe to also become the president
of our manufacturing activities, including Gyrus, in
the Americas. This, together with the assignment of
a European to lead the Medical Systems Business
in the Americas, who will control Olympus’s surgical
businesses, Gyrus and ACMI, will further expand and
strengthen our operations in the Americas. Outside
the United States, we expect high business growth in
emerging countries such as China, India, Brazil and
Russia.
Please explain how you are reinforcing
the Olympus Group’s financial standing.
A: Looking at Olympus’s current financial position, we
first need to reduce our liabilities. While bringing about
a recovery in performance in the Imaging Systems busi-
ness and strengthening the endoscope business, we will
increase profit and reduce liabilities, and the “COST
CUTTING 20” initiatives will focus on reducing SG&A
expenses. In doing so, we will increase cash flows to
achieve further profit growth.
Finally, please tell us about the
Centenary Vision.
A: Our 100th anniversary will be in 2019, so we have
eight more years to go. Since it’s a long way off yet,
our focus is to make every effort to provide products
that will meet customer needs in 2012. As part of
such initiatives, we will improve operational efficien-
cies to make Olympus a determined and ambitious
company.
In addition, we are focused on increasing the
return to our shareholders. Creating more profit will
allow us to invest more in our businesses, and this,
in turn, can be reflected in shareholder returns. We
will continue this cycle, while stabilizing employment
and providing opportunities for individual employees
to develop their careers. All these efforts will increas-
ingly consolidate Olympus’s financial position and
lead us to further growth.
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Our 100th anniversary will be in 2019, so we have