Olympus 2012 Annual Report Download - page 55

The OM-D is a mirrorless interchangeable-lens camera developed for serious
camera users. By completely converting the mirror and optical rangefinder
functions characteristic of SLR cameras to electronic devices, we realized substan-
tial reductions in product size and weight. In addition, the use of an electronic
viewfinder has made it possible to confirm in real time inside the rangefinder
exposure, color balance, and other details.
The OM-D incorporates many other new technologies. Above all, we were
uncompromising about image quality. Since we were reviving the storied OM
brand, we developed a new imaging sensor to achieve superb image quality
befitting the brand. We also introduced 5-axis image stabilization, the world’s first
technology in a still camera to compensate for camera shake, which is important
for image quality improvement. We overcame a weakness of mirrorless cameras
by achieving the world’s fastest autofocus by means of the FAST AF system. We
engaged in technical development of the OM-D in parallel with development of the
PEN series and are confident that we have succeeded in building into the product
performance that meets people’s expectations for the OM brand.
In this way, Olympus excels given
the challenge of developing leading-edge
technologies and incorporating them into
products. The incorporation of new
functions and product miniaturization are
a source of pride, a pride that carries the
spirit of Olympus engineers which we
have inherited. We will continue to
provide products that delight Olympus
fans, and I encourage you to have high
expectations for more great things to
come.
Business Strategy as Part of Our Medium-Term Vision
Akira Watanabe
General Manager, Brand Strategy Department
Olympus Imaging Corp.
Focus on Mirrorless and High-End Compact Cameras
A review of the past product strategy revealed that a lack of
differentiation technologies and loss of uniqueness are short-
comings. With mirrorless cameras, we were able to enhance the
product line and create a market through the pioneering development of a
differentiated technology. Monthly unit sales in 2012 have increased to the
level of approximately half of total sales in the interchangeable lens digital
camera market in Japan (information compiled by research firm BCN Inc.).
In high-end compact cameras, another priority segment, Olympus will
pursue uniqueness by applying leading-edge technologies cultivated in the
development of mirrorless cameras. The plan is for Olympus products to
account for more than half of total unit sales of single-lens cameras (mirrorless
and conventional models) and high-end compact cameras by fiscal 2017.
Significant Improvements in Revenue Structure for
Manufacturing Costs and SG&A Expenses
Whereas heretofore Olympus had invested in manufacturing in
the pursuit of scale spurred by a growth trend in digital cam-
eras, We will now undertake restructuring of the manufacturing function. First,
at the Shenzhen Plant in China, we will introduce the latest production
technologies and exhaustively pursue productivity. Next, we will focus in-house
production on high-value-added lens barrels and interchangeable lenses and
actively utilize OEM and EMS for assembly processes, in which it is generally
difficult to create added value.
In addition, our policy is to achieve an improvement of three percentage
points in the cost of sales ratio and eight points in the SG&A ratio by fiscal
2015 by undertaking improvements in SG&A expenses by means including
optimization of the number of employees in Japan and overseas.
Policy
1
Policy
2
Single-lens cameras
(mainly mirrorless)
180% increase
High-end compact cameras
70% increase
Low-end compact cameras
50% decrease
Targets for Digital Camera Unit Sales (Sales Ratios)
(10,000 units)
2012 (FY)
815 820 780 740
2013
(Plan)
2015
(Plan)
2017
(Plan)
Less
than 30%
Approx. 60%
Business Environment
The business environment for digital cameras has greatly changed in the past few years. The market for low-
priced compact cameras is contracting, mainly in developed countries, because of the rise of smartphones. At the
same time, high-value-added compact cameras and mirrorless interchangeable-lens cameras, a product category
created by Olympus, are highly rated by customers who place importance on photography, and these are stable or
growing segments in the digital camera market.
Olympus will rebuild the Imaging Business and establish a business structure to ensure stable profitability by means of a product strategy aligned with
market changes and customer needs and fundamental improvements in the profit structure.
Imaging Business
Optical and imaging technology
and brand driver
OM-D Technologies, “The Beginning of the New”
30.7%
Mirrorless
Camera Sales
Share in Japan
(January to June 2012）
*Information compiled by BCN Inc. Olympus
Panasonic
29.6％
Nikon
17.8％
Sony
15.4%
Pentax Ricoh
Imaging
5.9％
Other
0.6％
OLYMPUS 󱚈 Annual Report 2012 53