Olympus 2015 Annual Report Download - page 19

Composition (Fiscal year ended March 31, 2015)
Share of Net Sales
(Consolidated net sales)
73.0%
Share of Net Sales
by Product
Japan
19.0%
Others
2.1%
North America
37.2%
Europe
25.7%
Asia / Oceania
16.0%
Share of Net Sales
by Region
Endoscopes
56.1%
Surgical &
endotherapy
devices
43.9%
Share of more than 70% of global gastrointestinal endoscope
market
Technological capabilities that led to development of world’s first
practical gastrocamera and have continued to lead innovation
Position as only manufacturer to deal in both imaging equipment
and energy devices
Network of more than 200 repair sites worldwide
Growing healthcare awareness; rising demand for early diagnosis
due to spread of cancer prevention education
Increased demand for minimally invasive treatment methods
Insufficient number of physicians trained in endoscopic
procedures and room to improve medical techniques in
emerging countries
Progress in medical system reforms worldwide
Position as latecomer in surgical device field after European
and U.S. companies
Insufficient lineup of surgical device products for procedures
requiring open surgery and other treatments
Deficient development, manufacturing, and sales capabilities
for endotherapy and other disposable products
Strengthening of medical equipment regulations worldwide
Downward pressure on selling prices due to increased
influence of GPOs
Appearance of overseas rivals due to reorganization
of medical equipment industry
Impacts of foreign exchange rate fluctuations
(yen appreciation)
S
O
W
T
Strengths
Oppor-
tunities
Weaknesses
Threats
Review of Business Segments
Operating Environment and Forecasts
In developed countries, where populations are rapidly aging,
as well as emerging countries, which are experiencing high
economic growth, the improvement of patient quality of life
and control of both healthcare and social security expenses
have become urgent priorities. In the United States, for ex-
ample, the Affordable Care Act (ObamaCare) has created a
burgeoning trend toward efficiency and operational rationality
in the medical industry. Olympus possesses technologies
forthe development and manufacture of medical equipment
for advancing the progress in terms of early diagnosis and
minimally invasive therapies. These technologies place the
Company in a prime position to contribute to the medical
industry. By leveraging this strength, the Medical Business
willseek further business expansion by providing technolo-
gies, products, services, and solutions of the highest caliber.
Medical Business Medical Business
Global Market Share (As estimated by the Company)
(%)
0
40
80
120
160
0
20
10
30
40
50
150.0
137.0
124.9
112.7
87.1
22 23 22 22 23
2013/3 2014/3 2016/3
(Forecast)
2017/3
(Target)
2015/3
Operating Income / Operating Margin
(¥ Billion)
Operating income Operating margin (right)
0
200
400
600
800
2013/3 2014/3 2015/3
313.3
179.8
337.4
205.6
218.7
127.0
49.1
274.0
159.6
58.8 65.3 72.0
615.0
558.3
492.3
394.7
650.0
2016/3
(Forecast)
2017/3
(Target)
Net Sales
(¥ Billion)
Gastrointestinal endoscopes Endotherapy devices Surgical devices
0
100
200
300
400
500
600
2006/3 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3
Olympus’ Ever-Growing Medical Business
(¥ Billion)
Gastrointestinal endoscopes Endotherapy devices Surgical devices
Millions of yen
2012/3 2013/3 2014/3 2015/3
Operating Results
Net Sales 349,246 394,724 492,296 558,348
Operating Expenses 281,058 307,655 379,561 433,454
Operating Income 68,188 87,069 112,735 124,894
Operating Margin (%) 19.5% 22.1% 22.9% 22.4%
Sales by Product
Endoscopes 191,798 218,674 273,966 313,253
Domestic 43,803 47,335 57,136 56,300
Overseas 147,995 171,339 216,830 256,953
Surgical & Endotherapy Devices 157,448 176,050 218,330 245,095
Domestic 36,615 42,177 48,735 49,618
Overseas 120,833 133,873 169,595 195,477
Segment Data
R&D Expenditures (¥ billion) 26.9 31.3 34.4 43.3
Capital Expenditures (¥ billion) 15.6 17.1 26.7 36.8
Number of Employees* (people) 16,225 16,552 18,345 19,465
* Including average number of temporary employees
Akihiro Taguchi
Medical Business, Business Management Officer
Domestic
manufacturer B
Domestic
manufacturer A
* Product fields related to Olympus’ operations (general surgery, urology, and orthopedics)
We aim to expand our business by providing
world-leading services and the two forms of
valuerepresented by early diagnosis and minimally
invasive therapies.
In the gastrointestinal endoscope field, we are strengthening our operating
foundation with the aim of solidifying our position as the world’s No. 1
manufacturer. Meanwhile, the surgical device field has been positioned as a
future growth driver, and we plan to expand our market share in this field by
strengthening sales forces and leveraging our competitive products. At the
same time, we will step up activities in the other medical field business units,
which have been reorganized into independent organizations under the new
organizational structure, in the pursuit of brisk growth.
Olympus
70%
Overseas
manufacturer B
35
OLYMPUS Annual Report 2015
34 OLYMPUS Annual Report 2015
Performance and Strategies by Business
Gastrointestinal
endoscopes
Olympus
20%
Others
Overseas
manufacturer A
Surgical endoscopes*
Olympus
15%
Overseas
manufacturer B
Overseas
manufacturer A
Energy devices
Olympus
25%
Others
Overseas
manufacturer A
Endotherapy devices