Omron 2004 Annual Report Download - page 23

21
OPERATING RESULTS IN FISCAL 2003
Lifestyle-related diseases are becoming an
increasingly serious issue in the U.S.,
Europe, and Japan. In the circumstances,
the needs of home medical care are also
growing rapidly. Such care effectively pre-
vents and manages lifestyle-related dis-
eases when doctors promptly utilize vital
health readings monitored at home on a
daily basis. With living standards improving
in urban areas in China and other Asian
countries, self-care awareness is gradually
taking hold. Thus, the Omron Group’s
healthcare business is set for expansion in
an increasingly wide arena.
As a result of growing social needs with
respect to lifestyle-related diseases, domes-
tic sales rose 12.7% year-on-year to ¥21.3
billion, and overseas sales increased 9.5%
to ¥25.7 billion. Sales for the segment as a
whole grew 10.9% to ¥47.0 billion.
In the domestic market, greater numbers
of patients with high blood pressure and
accelerated popularization of blood-pres-
sure taking at home spurred the sales
growth of digital monitors, and the introduc-
tion of new products and aggressive adver-
tising investment resulted in rapid expansion
in market share for body composition moni-
tors. In addition, the satisfaction of user
requirements for greater compactness in
chair massagers helped drive sales of that
product line as well.
Overseas, sales were up in all product
areas, against a background of greater
numbers of people with high blood pres-
sure. Particularly in the U.S., the sales of
nebulizers for patients experiencing chronic
obstructive pulmonary disease (COPD) as
well as the sales of digital blood pressure
monitors increased. In China as well, mar-
ket development was achieved by spurring
demand through expansion of sales and
service locations together with investment in
advertising and promotion taking advantage
of brand strength.
FUTURE OUTLOOK AND STRATEGY
As health consciousness increases both
domestically and overseas, continued
expansion is expected for digital blood
pressure monitors, body composition
monitors, and nebulizers. Domestically,
growth is also expected from an enhanced
lineup of chair massagers. In China,
emphasis will be placed on expanding the
market in urban areas for healthcare and
medical equipment. These strategies will
serve to further reinforce the HCB operat-
ing structure. Given this environment and
strategy, sales for fiscal 2004 in the HCB
segment are anticipated to rise 5.4%, to
¥49.5 billion.
This chair massager incorpo-
rates a full-fledged massage
function while achieving a low
price. Available in six different
colors, and Good Design
Award-winning.
World’s smallest, lightest nebu-
lizer operates with two “AA”
batteries, for convenient use at
work, school, or when traveling.
Mesh Nebulizer Model NE-U22
Chair Massager
Pisu Style HM-411
Transformation of Healthcare Business from Internal Company to Wholly Owned Subsidiary
In July 2003, the internal Health Care Business Company (overseeing planning and sales) was combined with OMRON Institute of Life
Science Co., Ltd. (overseeing development), to form a wholly owned subsidiary known as Omron Healthcare Co., Ltd. Health care
related operations were thus spun off into a separate entity. This new subsidiary, which encompasses the growth domain of lifestyle-
related disease monitoring, required independent structures, decision-making systems, and employment systems so as to flexibly and
speedily direct resources toward this domain. As a specialist manufacturer in the healthcare and medical field, this subsidiary will oper-
ate autonomously to encourage business development in the four home medical care areas of circulatory systems measurement, bio-
chemical systems measurement, obesity solutions, and lifestyle improvement programs. The objective will be continued progress
toward the maximization of corporate value.