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Annual Report 2012
Back to Basics
ঈ๘ޑ࡚

Table of contents

  • Page 1
    Back to Basics Annual Report 2012

  • Page 2
    ... Imaging Business Information & Communication Business Others Intellectual Property Report Board of Directors, Corporate Auditors and Executive Officers Financial Highlights Financial Review Business Risks Consolidated Financial Statements Other Financial Data Olympus Group Companies Investor...

  • Page 3
    ... to society and its development through products and solutions. Recognizing our technological prowess and getting back to the original spirit of monozukuri (excellence in manufacturing), the entire Olympus Group will work in unison on the genesis of a new Olympus. OLYMPUS Annual Report 2012 1

  • Page 4
    To Our Stakeholders Chairman Yasuyuki Kimoto President and Representative Director Hiroyuki Sasa Our employees around the world will work in unison to resurrect Olympus and increase corporate value and shareholder value. 2 OLYMPUS Annual Report 2012

  • Page 5
    ... ended March 31, 2012, was a year of turmoil for Olympus in which a change of top management, issues related to the deferral of losses, correcting prior financial results, the designation of Olympus shares as "securities on alert" by the Tokyo Stock Exchange, an overhaul of the management structure...

  • Page 6
    Introducing the New Management Structure Under the new management structure, Olympus will implement full-fledged structural reforms to restore trust. We will focus on our customers and their needs and continue our quest to create world-first, world-class products. 4 OLYMPUS Annual Report 2012

  • Page 7
    ... on sales and pursue Profitable Growth. Olympus' shares were designated as "securities on alert" by the Tokyo Stock Exchange on January 21, 2012. Olympus aims to reverse the designation in one year by strengthening the corporate governance system, developing internal control systems, reviewing...

  • Page 8
    ... the Company April 2005: General Division Manager, Olympus Medical Systems Corp. April 2009: Director, Olympus Europa Holding GmbH June 2009: Executive Officer October 2011: Executive Managing Director and Chairman of the Board, Olympus Europa Holding GmbH February 2012: Assistant to Group President...

  • Page 9
    ..., Production Research Dept. April 2008: Head, Ina Factory June 2009: Executive Officer April 2010: Division Manager, Manufacturing Technology Div., Corporate Monozukuri Innovation Center October 2011: President and Representative Director, Nagano Olympus Co., Ltd. March 2012: Assistant to Group...

  • Page 10
    ... President and Representative Director, Louis Vuitton Japan Company, LVJ Group K.K. October 2008: President, Better Place Japan Co., Ltd. (to present) April 2012: Director of Olympus (to present) [Important concurrent positions] President, Better Place Japan Co., Ltd. 8 OLYMPUS Annual Report 2012

  • Page 11
    ...: Executive Officer April 2006: Division Manager, Business Support Div. June 2007: President and Representative Director, Aizu Olympus Co., Ltd. June 2010: Executive Managing Officer President and Representative Director, Olympus Medical Science Sales Co., Ltd. April 2012: Standing Corporate Auditor...

  • Page 12
    ... Banking Corporation) in 1971. After retiring from the bank as a director, in 2006 I became president and representative director of Japan Research Institute. I spent more than twothirds of my 36-year career at the bank in work related to overseas operations. In Europe, I served as president and...

  • Page 13
    ... to support the work of the president, and I hope to fulfill that role. Under the new corporate governance system, we aim to regain the trust of our stakeholders and improve corporate value. Q3 One finding in the investigative report of the Third Party Committee is that the Board of Directors was...

  • Page 14
    ... corporate governance system in place, the Board of Directors must shift to the next task: offering constructive commentary on the direction Olympus should take in the future. Since the Board has many members who bring a wealth of experience and keen insight as business managers, I believe that high...

  • Page 15
    ... corporate governance system and practicing fair and open investor relations, we will give rise to a new Olympus that proudly and unashamedly demonstrates its value to the world. I request the continued support and encouragement of our stakeholders in the coming years. OLYMPUS Annual Report 2012...

  • Page 16
    ..., the Board of Directors meets once per month, and strives to make timely decisions regarding Olympus' business strategies and other important management matters and to exercise appropriate oversight of business execution. A corporate Corporate Governance Structure (Summary) General Meeting of...

  • Page 17
    ... with the representative director four times per year. Furthermore, the corporate auditors receive periodic reports from independent auditors about matters such as the annual audit plan, matters related to the quarterly closing of accounts, and year-end audit reporting and exchange opinions with the...

  • Page 18
    ... or requesting information on compliance-related issues and develop a system to report the details of such issues, if they arise, to the Board of Directors and the Board of Auditors. (c) Olympus shall set up a CSR Committee chaired by the president and regularly hold meetings to set objectives for...

  • Page 19
    ... at all organizational levels President Global Compliance Committee Japan Americas Europe Asia Compliance contact channel (internal) 4 Upgrading of the internal compliance-related reporting system Upgrading of the compliance helpline (external) Board of Directors Compliance Oversight Compliance...

  • Page 20
    ... conferring to find rapid solutions to problems. Outside Director Shiro Hiruta The new governance configuration is only a means to an end, and the true objective is to lead the management of Olympus in an appropriate, sound direction. Now that outside directors make up a majority of the board, we...

  • Page 21
    ... open-minded corporate culture. Outside Director Hikari Imai Under the new governance structure, the outside directors have secured a certain amount of authority, which has strengthened transparency and the management oversight function. At the same time, now that the Board of Directors includes...

  • Page 22
    ... After serving as manager of an endoscope development division, I became division manager in charge of marketing for the Medical Business and worked to implement our global sales strategy. What is required of Olympus at this time is results. It is not enough to merely prepare a medium-term plan; the...

  • Page 23
    ... measures implemented up until now. As the results for fiscal 2012, the year ended March 31, 2012, indicate, Olympus faces a crisis situation in every aspect of financial performance: declining profitability, balance sheet results, and equity ratio. I believe that unless we overcome this adverse...

  • Page 24
    ... the development of society through products and solutions. This was the desire to contribute to the health of the Japanese people through epidemiology by manufacturing microscopes in Japan. The Olympus PEN, the world's first half-frame film camera, the OM-1, the world's lightest single-lens reflex...

  • Page 25
    ... management resources Life Science & Industrial Driver of optical technologies and growth Imaging Driver of optical and imaging technologies and the Olympus brand Olympus aspires to be a medical-field focused company that contributes to people's physical and mental health. OLYMPUS Annual Report...

  • Page 26
    ...sales adjusted using the exchange rate assumptions in the medium-term vision: 80 yen to the US dollar and 100 yen to the euro. Figures for fiscal 2013 and beyond are projected amounts. 200 0 2003 2005 2007 2009 2011 2013 2015 2017 Fiscal years ended/ending March 31 24 OLYMPUS Annual Report 2012

  • Page 27
    ... diagnosis Resources and recycling Development of new markets in new industries Development of new business fields through acquisition of new technologies and products Sales expansion by entering untapped industries Development of new markets in new industries OLYMPUS Annual Report 2012 25

  • Page 28
    ...and high-end compact cameras, and the second is the restructuring of manufacturing and fundamental reform of the cost structure, including SG&A expenses. By implementing these strategies, we will return the business to profitability in fiscal 2013 and secure an operating margin of 5% five years from...

  • Page 29
    ...compact cameras. For instance, the XZ-1 is equipped with a bright, high-performance lens and the PEN image engine. It has been well received and has maintained a high share of the market in its category since its introduction in February 2011. Furthermore, in June 2012, we added a new model equipped...

  • Page 30
    ... of three companies in Japan (Altis, NEWS CHEF, and Humalabo) by the end of the current fiscal year. In addition, Olympus Business Creation Corp., a company with more than 20 subsidiaries that engages in wide-ranging projects related to new businesses, such as medical-related service businesses and...

  • Page 31
    ... 5% 47% ¥70.0 billion or more 30% or more ¥300.0 billion Operating margin (Medical) (Life Science & Industrial) (Imaging) SG&A ratio to net sales (Medical, Life Science & Industrial, Imaging, Corporate) Free cash flows Equity ratio Balance of interest-bearing debt OLYMPUS Annual Report 2012 29

  • Page 32
    President Hiroyuki Sasa Discusses the Medium-Term Vision: Back to Basics >>> Current Financial Conditions and Targets The equity ratio decreased from 11% at the fiscal 2011 year-end to 4.6% at the fiscal 2012 year-end. In view of global economic trends, that include the European economic crisis and...

  • Page 33
    ... Olympus is a manufacturing company, I believe that investment in the future is extremely important. Even as we strive for rigorous cost reductions and profitability improvements, we will step up investment in technology development and facilities and make strategic moves for future growth. We plan...

  • Page 34
    ...Business 41.2% Surgical and endotherapy devices Endoscopes and endoscopy systems Olympus is currently constructing a global, trilateral organization comprised of the Americas, Europe, and Japan/Asia. In the Americas, manufacturing is based at Olympus Surgical Technologies America (formerly Gyrus...

  • Page 35
    ...(United States) Stamford (United States) World's largest endoscope repair center (San Jose, U.S.A.) Saltillo (Mexico) Manufacturing market-leading urological and gynecological (As of end of March 2012) equipment (Maple Grove, U.S.A., formerly a Gyrus ACMI facility) OLYMPUS Annual Report 2012 33

  • Page 36
    ... are generated. Mitsumasa Okada Note: Launch of THUNDERBEAT surgical energy device in Japan is pending regulatory approval. THUNDERBEAT has been launched in the Europe and the Americas. General Manager, Therapeutic Products Department Olympus Medical Systems Corp. 34 OLYMPUS Annual Report 2012

  • Page 37
    ... inimitable technological edge, and by maximizing the power of the Olympus sales network (bolstered by our acquisition of Gyrus ACMI), we expect to achieve steady future gains in the surgical arena. Global Market for Surgical Energy Devices (US$ billions) Market Share for Surgical Energy Devices...

  • Page 38
    ... enhancing the lives of patients, Olympus continues to be the leader in endoscopy, with a 70% market share worldwide. Timeline of Olympus Endoscope Development 1950 1963 1982 2002 2012 Gastrocamera Fiberscope Videoscope system High-definition endoscope system 36 OLYMPUS Annual Report 2012

  • Page 39
    .... Outlook for the Future: Aiming for Further Expansion of Our Current 70% Global Market Share In June 2012, Olympus announced a medium-term vision that includes an ambitious average annual growth target of 9% while securing a large share of the gastrointestinal endoscope market segment. As aging...

  • Page 40
    ... in developing nations so that they are able to offer endoscopy services. Toward that end, Olympus has already established a training center in China for advanced endoscopic treatment. In the future, training centers will also be established in more than 20 other regions in Asia. Target Area...

  • Page 41
    ...-frequency knife for endoscopic submucosal dissection (ESD) of lesions in the esophagus and large intestine. Olympus in the Americas will launch this exciting new product later this year. Product Features 1. The ceramic tip at the distal end of this device is insulated to help perform incisions and...

  • Page 42
    ...10.9% Imaging Business Olympus offers unique digital cameras, such as PEN and OM-D series next-generation mirrorless interchangeable-lens cameras and high-end, high-power zoom compact cameras, and voice recorders that command high market share. Fiscal 2012, brought higher sales of mainstay models...

  • Page 43
    ... endoscope area 1975 Entry into medical surgical endoscopy area 1996 Entry into the digital camera business (Billions of yen) Operating income (Billions of yen) Operating margin 209.5 229.4 5.2 5.3 2.5% 2.3% Olympus has resolved to transfer its Information & Communication Business to Japan...

  • Page 44
    ... BUSINESS Share of Net Sales 41.2% Olympus developed the world's first practical gastrointestinal endoscope in 1950, contributing greatly to the establishment of a method for the early diagnosis of gastric cancer, the leading cause of death in Japan at the time. Subsequently, we have worked...

  • Page 45
    ... equipment: Video printers, endoscope cleaning systems, sterilization system, etc. Capsule endoscopy: Capsule endoscopes, recorders, real-time viewers, etc. Surgical Devices Medical equipment for surgical therapy and surgery: Surgical video endoscope systems (surgical endoscopes, video processors...

  • Page 46
    ... exchange transactions. Today, the Medical Business is achieving steady sales growth. New Products In our endoscopy, surgical, and endotherapy device businesses, Olympus has made significant progress in the development of strategically important new products that will serve as future growth drivers...

  • Page 47
    ... by continuously introducing new products incorporating differentiating technologies, such as narrow band imaging (NBI). Policy 1 3 The field of surgical devices is a growth driver in which Olympus aims for average annual sales growth of 14% by providing solutions that help surgeons diagnose and...

  • Page 48
    ...-destructive testing, Olympus supports public infrastructure safety and security and contributes to R&D and quality improvement in production by offering industrial endoscopes, ultrasonic flaw detectors, eddy current flaw detectors, and X-ray diffraction analyzers. Olympus meets wide-ranging needs...

  • Page 49
    ... rigid scopes, ultrasonic flaw detectors, eddy current flaw detectors, phased array flaw detectors, X-ray diffraction analyzers, peripheral equipment BX3 series biological microscopes LEXT OLS4000 industrial microscope OmniScan MX2 ultrasonic flaw detector OLYMPUS Annual Report 2012 47

  • Page 50
    ...-related markets. Shinichi Nishigaki President Life Science & Industrial Group New Products In the industrial field, newly introduced industrial microscopes and industrial endoscopes are expected to contribute to future sales. January 2012 marked the launch of the DSX series of opto-digital...

  • Page 51
    ... mind through industrial videoscopes. July 2012 Launch of Strategically Important New Biological Microscopes and Industrial Endoscopes Life Science Field IX3 series of biological microscopes - A new mainstay product line These microscopes meet needs in the fields of life science and medical research...

  • Page 52
    ..., lightweight PEN series of mirrorless interchangeable-lens cameras. Olympus will continue its quest to increase the fun of photography and audio recording and listening by offering groundbreaking digital cameras and voice recorders which boast the world's top share. 50 OLYMPUS Annual Report 2012

  • Page 53
    ... Cameras Digital single-lens cameras, compact digital cameras, digital camera-related products, digital camera lens barrels, optical components Others IC recorders, binoculars OLYMPUS OM-D E-M5 OLYMPUS PEN E-P3 OLYMPUS XZ-1 OLYMPUS Tough TG-1 Voice-Trek V-803 OLYMPUS Annual Report 2012...

  • Page 54
    ...in Japan, Asia, and Europe, of high-value-added models such as the mainstay PEN series of mirrorless interchangeable-lens cameras and XZ-1 cameras, which deliver the highest image quality available from a compact camera. Nevertheless, full-year consolidated net sales fell year on year as a result of...

  • Page 55
    ... by means of a product strategy aligned with market changes and customer needs and fundamental improvements in the profit structure. Imaging Business Focus on Mirrorless and High-End Compact Cameras A review of the past product strategy revealed that a lack of differentiation technologies and...

  • Page 56
    ... flat year on year, rising 0.7%, as a result of factors including the impact on goodwill of making ITX Corporation a wholly owned subsidiary through a share exchange in March 2011. Future Business Development To secure stable profits, ITX Corporation will expand its mobile handset sales network by...

  • Page 57
    ... within the Olympus Group difficult. As of March 2012, Olympus Business Creation Corp., a subsidiary in charge of the nurturing of new businesses, has more than 20 subsidiaries. It plans to reduce the number to a few companies during the coming two years. Reference information: Subsidiaries...

  • Page 58
    ..., Olympus creates new value in the Medical, Life Science & Industrial, and Imaging businesses. Olympus' consolidated net sales in fiscal 2012, resulting from businesses based on the above technological core competences, were ¥848.5 billion, 0.2% higher compared with the previous year. Olympus...

  • Page 59
    ... 2010 27 2011 57 Electronic and Imaging Technology Precision Technology Biomechanical and Biological Fundamental Technology 5,000 Japan 0 2. Breakdown of Patents in Core Competence Areas as Part of All Patents Held Beginning in fiscal 2012, Olympus will report the core competence area ratios...

  • Page 60
    Board of Directors, Corporate Auditors and Executive Officers (As of June 29, 2012) Chairman Yasuyuki Kimoto President and Representative Director Hiroyuki Sasa Director, Senior Executive Managing Officers Hideaki Fujizuka Yasuo Takeuchi Senior Executive Managing Officer Akihiro Taguchi Executive ...

  • Page 61
    CONTENTS Financial Highlights Financial Review Business Risks Consolidated Balance Sheets Other Financial Data Olympus Group Companies Investor Information 60 62 64 66 98 100 102 OLYMPUS Annual Report 2012 59

  • Page 62
    ..., 2009 and 2012 are omitted as Olympus recorded net loss for these fiscal years. The average number of temporary employees is stated in parentheses from the fiscal year ended March 31, 2011 as the number of temporary employees is over 10% of the total number of employees. 60 OLYMPUS Annual Report...

  • Page 63
    ... 50 40 30 20 10 0 2008 2009 2010 2011 2012 (FY) Capital expenditures Depreciation and amortization R&D Expenditures (Billions of yen) 90 75 60 45 30 15 0 2008 2009 2010 2011 2012 (FY) Return on Equity (ROE) 75 50 25 0 -25 -50 -75 2008 2009 2010 2011 2012 (FY) OLYMPUS Annual Report 2012 61

  • Page 64
    ... East Japan Earthquake. Amid this business environment, the Olympus Group worked to "transform Olympus into a more globally competitive company" and "strengthen our business presence in the emerging markets" based on the "2010 Corporate Strategic Plan," which commenced in the fiscal year ended March...

  • Page 65
    ... the Imaging Business, we will focus on high-value added products such as the OM-D series, a new generation camera, and carry on the transition to a business structure that steadily yields profit through cost reduction. The forecast of consolidated financial results for the fiscal year ending March...

  • Page 66
    ... Business, the supply of systems for research funded by national budgets of countries accounts for a high proportion of earnings, and curtailment of national budgets for reasons such as macro-economic changes may affect earnings. 3) In the digital camera sector of the Imaging Business, price...

  • Page 67
    ... develop its internal control systems in response to the designation of the Company shares as "securities on alert" by the Tokyo Stock Exchange (TSE) on January 21, 2012. Nevertheless, if three years after the designation the TSE deems that problems remain with the Company's internal control systems...

  • Page 68
    CONSOLIDATED BALANCE SHEETS Olympus Corporation and Consolidated Subsidiaries As of March 31, 2012 and 2011 Millions of yen 2012 2011 As restated (Note 1) Thousands of U.S.dollars (Note1) 2012 ASSETS CURRENT ASSETS: Cash and deposits (Notes 3, 16 and 23) Notes and accounts receivable (Notes 3, 5 ...

  • Page 69
    ... (Note 14): Common stock: Authorized-1,000,000,000 shares Issued-271,283,608 shares as of March 31, 2012 and 2011 Capital surplus Retained earnings Treasury stock, at cost Total shareholders' equity Net unrealized holding gains on available-for-sale securities, net of taxes Net unrealized losses on...

  • Page 70
    CONSOLIDATED STATEMENTS OF OPERATIONS Olympus Corporation and Consolidated Subsidiaries For the years ended March 31, 2012 and 2011 Millions of yen 2012 2011 As restated (Note 1) Thousands of U.S.dollars (Note1) 2012 Net sales Cost of sales Gross profit Selling, general and administrative ...

  • Page 71
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Olympus Corporation and Consolidated Subsidiaries For the years ended March 31, 2012 and 2011 Millions of yen 2012 2011 As restated (Note 1) Thousands of U.S.dollars (Note1) 2012 Income (loss) before minority interests ¥ (48,777) ¥ 4,313 $ (...

  • Page 72
    ... NET ASSETS Olympus Corporation and Consolidated Subsidiaries For the years ended March 31, 2012 and 2011 Millions of yen Retained earnings as restated (Note 1) Treasury stock, at cost Total shareholders' equity Common stock Capital surplus Balance at March 31, 2010 Transfer to pension liability...

  • Page 73
    ... OF CASH FLOWS Olympus Corporation and Consolidated Subsidiaries For the years ended March 31, 2012 and 2011 Millions of yen 2012 2011 As restated (Note 1) Thousands of U.S.dollars (Note1) 2012 CASH FLOWS FROM OPERATING ACTIVITIES: Loss (income) before income taxes and minority interests...

  • Page 74
    ... FINANCIAL STATEMENTS The accompanying consolidated financial statements of Olympus Corporation (the "Company") and its consolidated subsidiaries have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting...

  • Page 75
    ... resigned their offices as of the balance sheet date. Provision for retirement benefits presented in the non-current liabilities of the consolidated balance sheets included retirement allowance for directors and corporate auditors as of March 31, 2012 and 2011. OLYMPUS Annual Report 2012 73

  • Page 76
    ...in foreign currencies, forward foreign exchange contracts are arranged to reduce the risk. Short-term borrowings, long-term debt, bonds and lease obligations are raised mainly in connection with business activities, and long-term debt is taken out principally for the 74 OLYMPUS Annual Report 2012

  • Page 77
    ...and the Board of directors for their review. (c) Monitoring of liquidity risk (the risk that the Group may not be able to meet its obligations on scheduled due dates) Based on the report from each division, the Group prepares and updates its cash flow plans on a timely basis to manage liquidity risk...

  • Page 78
    ... fund is based on either quoted market prices or prices provided by the financial institutions making markets in these securities. For information on securities classified by holding purpose, please refer to Note 4 "Securities." Notes and accounts payable and Short-term borrowings Since these items...

  • Page 79
    ...National and local government bonds ...2) Corporate bonds ...Other marketable securities with maturities 1) Corporate bonds ...2) Other ...Total ... $ 2,499,050 1,882,425 $ - - $ - - $ - - - - - 9,225 $ 4,390,700 - - - 11,388 11,388 - - - - - - - - - - $ $ $ OLYMPUS Annual Report 2012...

  • Page 80
    ... and loss for the years ended March 31, 2012 and 2011: Millions of yen 2012 Sales proceeds Aggregate gain Aggregate loss Sales proceeds 2011 Aggregate gain Aggregate loss Sales proceeds Thousands of U.S. dollars 2012 Aggregate gain Aggregate loss Equity securities...Others ...Total ... ¥ 3,098 239...

  • Page 81
    ... for the years ended March 31, 2012 and 2011, were included in the following account: Millions of yen 2012 2011 Thousands of U.S. dollars 2012 Cost of sales... ¥ 1,191 ¥ 1,208 $ 14,888 7. SHORT-TERM BORROWINGS Short-term borrowings consisted principally of bank loans. The annual interest rates...

  • Page 82
    ... TO THE CONSOLIDATED FINANCIAL STATEMENTS 8. LONG-TERM DEBT Long-term debt as of March 31, 2012 and 2011, consisted of the following: Millions of yen (Unsecured long-term debt) 2012 2011 Thousands of U.S. dollars 2012 2.15% yen bonds, due July 2018 ...1.09% yen bonds, due July 2012 ...1.94% yen...

  • Page 83
    ... of yen 2012 2011 Thousands of U.S. dollars 2012 Projected benefit obligation...Fair value of plan assets ...Unrecognized prior service costs ...Unrecognized actuarial loss ...Prepaid pension costs ...Retirement benefits for employees ...Retirement benefit for directors and corporate auditors...

  • Page 84
    ... FINANCIAL STATEMENTS The discount rates used by the Company were mainly 2.0% for the years ended March 31, 2012 and 2011. The rate of expected return on plan assets used by the Company is mainly 4.0% for the years ended March 31, 2012 and 2011. The estimated amount of all retirement benefits...

  • Page 85
    ... the statutory tax rate and the Company's effective tax rate for consolidated financial statement purposes for the years ended March 31, 2012 and 2011. The reconciliation for the year ended 2012 is not stated as net loss before income taxes was recorded. 2012 2011 Japanese statutory tax rate...Non...

  • Page 86
    ... financial statements of the Company in accordance with the Laws. A summary of information regarding the Consolidated Statement of Changes in Net Assets for the year ended March 31, 2012 was as follows: Total number and class of shares issued and treasury stock As of March 31, 2011 (Number of shares...

  • Page 87
    ... of shares Record date Effective date General Shareholders' Meeting (November 5, 2010) ... Common Stock ¥4,050 ¥15.00 September 30, 2010 December 3, 2010 There were dividends whose record date is in the year ended March 31, 2011 but whose effective date is in the year ended March 31, 2012...

  • Page 88
    ... ended March 31, 2012 Use Type of assets Location Millions of yen Thousands of U.S. dollars Assets used for Imaging Business Assets used for Other Business Assets used for Life Science and Industrial Business Assets used for Information and Communication Business Idle properties Land Buildings...

  • Page 89
    ... PERIODS Expenses related to the restatement of prior periods of ¥2,001 million ($25,013 thousand) recorded in the consolidated statement of operations for the year ended March 31, 2012 primarily consist of costs incurred to investigate the inappropriate accounting applied by the Company, which was...

  • Page 90
    ... that do not transfer ownership to lessees whose contract commenced on or before March 31, 2008 are not capitalized and are accounted for in the same manner as operating leases. Certain information for such non-capitalized finance leases as of or for the years ended March 31, 2012 and 2011 were as...

  • Page 91
    ...five years Lease receivables and leased investment assets: Lease receivable ...Lease investment assets ...Other assets: Lease receivable ...Lease investment assets ...- - - 120,313 - 62,150 - 14,463 - 3,788 - 3,638 $ - 212,875 $ - 1,013 $ - 813 $ - 600 $ - 238 $ - - OLYMPUS Annual Report 2012 89

  • Page 92
    ... of other comprehensive income for the year ended March 31, 2012: Year ended March 31, 2012 Millions of yen Thousands of U.S. dollars Net unrealized holding losses on available-for-sale securities, net of taxes: Amount arising during the year ...Reclassification adjustments for gains and losses...

  • Page 93
    .... Contracts of derivative financial instruments are executed by finance departments of the Company or subsidiaries. The Company's and its consolidated subsidiaries' trade payable that are denominated in foreign currencies which meet specific matching criteria and have been hedged by foreign exchange...

  • Page 94
    ...other products. The "Life Science and Industrial Business" manufactures and sells biological microscopes, industrial microscopes, industrial endoscopes, non-destructive testing equipment, printers, and other products. The "Imaging Business" manufactures and sells digital cameras, voice recorders and...

  • Page 95
    ... consolidated statement of operations. The internal sales or transfer among segments are based on actual market prices. (3) Information concerning net sales and profit (loss), assets and other items by reportable segment Millions of yen 2012 Life Science and Industrial Information and Communication...

  • Page 96
    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (4) Related information (a) Sales by destination 2012 Millions of yen 2011 Thousands of U.S. dollars 2012 to Japan ...to North America ...to Europe...to Asia ...to Other areas... ¥ 398,237 165,263 156,149 107,304 21,595 ¥ 386,502 182,009 154,363 ...

  • Page 97
    ... shares which have resulted in a dilutive effect. Net assets per share are computed based on the net assets excluding share subscription rights and minority interests and the number of shares of common stock outstanding at the year end. For the years ended March 31: 2012 Yen 2011 U.S. dollars 2012...

  • Page 98
    ... and other public bodies are currently being conducted related to the Company and its subsidiaries. The consolidated financial statements may be amended if any important matter comes to light in such investigations in the future. Furthermore, as a result of inappropriate financial reporting by the...

  • Page 99
    REPORT OF INDEPENDENT AUDITORS OLYMPUS ⎢ Annual Report 2012 97

  • Page 100
    ... Systems Business segment. Net Sales by Region Fiseal years ended March 31 2008 2009 2010 2011 (Millions of yen) 2012 Medical Life Science & Industrial Imaging Information & Communication Others Total Japan North America Europe Asia and Oceania Others Total Japan North America Europe Asia...

  • Page 101
    ...Product Fiseal years ended March 31 2008 2009 2010 2011 (Millions of yen) 2012 Domestic Endoscope Overseas Total Domestic Surgical & Endotherapy Overseas Total Domestic Total (Medical) Overseas Total Domestic Life Science Overseas Total Domestic Industrial Overseas Total Domestic Diagnostic Systems...

  • Page 102
    ... the Olympus group companies for the disabled Olympus Memory Works Corp. (Tokyo) Planning, production and selling of network-related products and services Note: The Company has resolved to transfer its Information & Communication Business to Japan Industrial Partners, Inc., on August 24, 2012. The...

  • Page 103
    ... endoscope-related products in Vietnam Olympus Medical Systems India Private Limited (Haryana, India) Marketing, sales and service of medical equipment in India Olympus Imaging India Private Limited (Mumbai, India) Marketing and service of digital cameras and digital voice recorders in India Olympus...

  • Page 104
    ... on economic, financial and competitive data currently available. Furthermore, they are subject to a number of risks and uncertainties that, without limitation, relate to economic conditions, worldwide business competition, customer demand, foreign currency exchange rates, tax rules, regulations...

  • Page 105
    Printed in Japan This report uses environment-friendly ink and paper.