Olympus 2013 Annual Report Download - page 18

32 OLYMPUS Annual Report 2013 33OLYMPUS Annual Report 2013
Review of Business Segments
Fiscal 2013 Business Results and Activities
In the gastrointestinal endoscope fi eld, the EVIS EXERA III
gastrointestinal video endoscopy system introduced in
Europe and the United States, as well as EVIS LUCERA
ELITE introduced in Japan, made strong contributions to
sales. In the surgical device fi eld, the VISERA ELITE
integrated video endoscopy system, which supports
endoscopic surgery, continued to record strong sales
in Europe, the United States, and Japan. Consolidated
net sales rose 13% year on year and operating income
increased 28%. Today, the Medical Business is achieving
steady sales growth.
New Products
The development of strategic products is progressing
smoothly, and, leading up to the end of 2012, Olympus
continued to introduce new products in the endoscope
and surgical devices businesses. In the gastrointestinal
endoscope fi eld, the EVIS EXERA III next-generation
gastrointestinal video endoscopy system was launched in
Europe and the United States in April 2012, and EVIS
LUCERA ELITE was released in Japan in November 2012.
In the surgical device fi eld, we launched two new devices in
Europe and the United States. In February 2012, we began
sales of THUNDERBEAT, the world’s fi rst surgical energy
device capable of delivering advanced bipolar and ultrasonic
energy simultaneously. Afterwards in April 2012, we released
VISERA ELITE*, a video endoscopy system designed for use
in surgical applications. Going forward, Olympus will work to
further expand its medical business by introducing new
products that will serve as future growth drivers.
* Introduced into the Japanese market in October 2011
Business Environment and Projections
In both developed countries, where populations are rapidly
aging, and emerging countries, which are experiencing
rapid economic growth, the improvement of patient quality
of life and control of both healthcare and social security
costs have become urgent priorities. Olympus possesses
technologies for the development and manufacture of
products that meet needs spanning from those for early
diagnoses to those for minimally invasive treatments. These
technologies place the Company in a position of strategic
signifi cance as it is able to contribute to the economic
soundness and clinical effi cacy of medical products.
Leveraging these strengths, Olympus will seek further
business expansion by providing technologies, products,
services, and solutions of the world’s highest caliber.
Challenges and Business Strategies
Accelerate the Medium-Term Vision and Expand Business Fields for Future Growth
Strengthen business base in the gastrointestinal endoscope  eld
(achieve average annual growth of 9%)
Olympus will leverage the EVIS EXERA III and EVIS
LUCERA ELITE endoscopy systems, both of which were
launched in Japan and overseas in 2012, to further expand
the scale of this business. At the same time, we will accelerate
initiatives intended to promote the standardization of early
diagnosis procedures utilizing our proprietary Narrow Band
Imaging (NBI) technology.
Furthermore, the Company will
seek out additional business
opportunities in respiratory medicine as well as other
medical and surgical disciplines.
Realize rapid growth in the surgical device  eld (achieve average annual growth of 14%)
Olympus will target higher shares in the imaging and energy
markets by enhancing its product lineups, including those
differentiated for minimally invasive treatments. The Company
will also pursue business expansion in the urology and
otorhinolaryngology markets by fully leveraging the treatment
technologies and sales capabilities of Gyrus ACMI, Inc.
On April 16, 2013, a joint venture medical company
was established by Olympus and Sony Corporation. The
resulting company, Sony Olympus Medical Solutions Inc.,
is developing new products centered on medical devices
with 3D and 4K imaging capabilities. These devices are
expected to widen the range of possibilities for
endoscopic surgery and help accelerate growth in our
surgical device portfolio.
Expand sales in emerging markets
(achieve average annual growth of 23%)
Emerging countries are experiencing population aging in a
similar fashion to developed countries, and healthcare costs
are shooting upward. For this reason, it is incredibly important
to train local physicians in the use of endoscopes. To meet this
need, Olympus is systematically constructing and utilizing
training centers with the aim of creating an even more
expansive network of training facilities in Asia. In addition,
we are expanding operations by reinforcing our lineup of
products matched to the specifi c needs of each market.
TOPICS
Launch of 3D Laparoscopy System and Videoscope Bringing
New Potential to the World of Surgery: ENDOEYE FLEX 3D
Laparoscopic surgery generally places less strain on the patient and requires shorter recovery
periods when compared to open procedures. Several clinical trials in this fi eld are being
advanced to further validate these benefi ts. However, this type of surgery is often diffi cult to
perform as the 2D screens of laparoscopy systems generally have problems portraying depth.
To address this challenge, Olympus developed a 3D laparoscopy surgical system that provides
a better sense of depth than the conventional 2D monitors. This system is expected to help
surgeons perform laparoscopic surgical procedures in a quicker and more precise manner.
Message from the Group President
We will expand our business by focusing on advancements in early diagnosis
and minimally invasive treatment technologies.
In the gastrointestinal endoscope  eld, we will strengthen our market position by leveraging new products introduced in
Japan and overseas. At the same time, in the surgical device  eld, we will expand our share of the imaging and energy
markets while continuing to build upon our established strengths in the urology and otorhinolaryngology markets.
Through these efforts, we expect to realize signi cant growth. In addition, we will expand our business by focusing on
advancements in early diagnosis and minimally invasive treatment technologies that address the increasing demand for
reducing healthcare costs while improving patient care.
MEDICAL
BUSINESS Akihiro Taguchi
President,
Medical Group
0
200
400
600
800
2011/3 2012/3 2013/3 2015/3
(Targets)
2017/3
195.5
159.9
191.8
157.4
218.7
176.1
520.0
650.0
0
40
80
120
160
0
20
10
30
40
50
150.0
111.0
87.1
68.2
71.7
20 20 22 21 23
2011/3 2012/3 2013/3 2015/3
(Targets)
2017/3
Net Sales
(¥ Billion)
Operating Income / Operating Margin
(¥ Billion) (%)
s
o
ve
ry
Operating income (left) Operating margin (right) Endoscopes Surgical and endotherapy devices
EVIS LUCERA ELITE
Source: Business Monitor International
0
100
200
300
400 377
295
209
CAGR: up to 25.4%
257
152
2007 (CY)2008 2009 2010 2011
Healthcare Expenditure in China
(US$ Billion)