Olympus 2012 Annual Report Download - page 26

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>>> Basic Policies for the Medical Business
The Medical Business has achieved stable growth over the years, and I believe that growth will continue in
view of the social environment. In the medium-term vision, we aim for an average annual net sales growth of
10% and operating income growth of 13% from the Medical Business. We have three basic policies for the
Medical Business. The first aims at an average annual growth rate of 9% in the gastroenterological
endoscope field, which has achieved a global market share exceeding 70%, while further strengthening the
business base and maintaining high market share. The second policy aims to position the surgical devices
field as a growth driver with an average annual growth rate of 14%. The third policy aims to achieve sales
expansion in emerging markets with the high average annual growth of 23%. (For detailed strategies that
make up the three basic policies, see Medical Business on page 45 in the Review of Operations.)
Let’s consider the environment surrounding the Medical Business that is the backdrop to this growth.
At a time of rapid aging of populations, especially in developed countries, improvement of patient quality of
life and control of healthcare costs and social security costs have become urgent priorities in countries all
over the world. Early detection and diagnosis and minimally invasive treatment, as exemplified by endoscopic
surgery, will play an increasingly important role in meeting these needs. Today, Olympus is the only company
in the world with technologies for the development and manufacture of devices that meet the full gamut of
needs from early detection and diagnosis to minimally invasive treatment. Olympus will seek further business
expansion by capitalizing on the highly strategically advantageous position of being capable of simultaneously
developing devices necessary for new minimally invasive treatments as well as new diagnostic methods
closely related to those new treatments.
The surgical devices field, a growth driver in which Olympus aims for average annual sales growth of
14%, offers high growth potential because there is a process flow from diagnosis through treatment. As a
matter of fact, although there are a great many gastrointestinal surgical procedures, the number of
laparoscopic stomach or colon surgical procedures is limited. The reason is inadequate image definition level
and energy device capabilities. This represents a major business opportunity. Olympus seeks to leverage its
unique, world-leading technologies in the field of gastrointestinal endoscopy to make possible to date
impossible surgeries by combining high-definition endosurgery imaging devices and energy devices with
Note to the graph: Net 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.
Net Sales in the Medical Business
(Billions of yen)
2003 2005 2007 2009 2011 2013 2015 2017
600
400
200
0
Net sales after exchange rate adjustments
Net sales before exchange rate adjustments
Fiscal years ended/ending March 31
President Hiroyuki Sasa Discusses the Medium-Term Vision: Back to Basics
OLYMPUS 󱚈 Annual Report 2012
24