Scientific Solutions Business Strategy
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Scientific Solutions Business Strategy Toshihiko Okubo Division Manager Scientific Solutions Business Strategy Division Olympus Corporation March 30, 2016 Todayʼs Agenda 1.Business Overview 2.Recognition of Current Conditions 3.Market Trends 4.Business Strategies 5.Targets and Indicators 2 2016/3/30 No data copy / No data transfer permitted Todayʼs Agenda 1.Business Overview 2.Recognition of Current Conditions 3.Market Trends 4.Business Strategies 5.Targets and Indicators 3 2016/3/30 No data copy / No data transfer permitted Business Direction of Scientific Solutions Business We contribute to the health and safety of society by offering optimal solutions based on innovative products and inspiring support that matches the evolving needs of life science and industrial professionals and exceeds their expectations. Inspection Analysis Measuring 4 2016/3/30 No data copy / No data transfer permitted Sales Distribution and Positioning FY2016 Net Sales (Forecast) Life sciencefield Life Sample preparation Pathological Research Cell culture Education processes examinations 106 80 FY2016 Net Sales Biological (Forecast) 15 microscopes Micro Internal Nondestructive Material Industrial fieldIndustrial ¥816 billion inspections inspections inspections analysis 615 X-ray fluorescence Industrial Industrial Nondestructive (XRF) microscopes endoscopes testing equipment analyzers 5 2016/3/30 No data copy / No data transfer permitted Birth of Existing Product Segments Life science field Industrial field Nondestructive X-ray Industrial Industrial fluorescence Biological microscopes testing microscopes endoscopes equipment (XRF) analyzers Business established by Businesses continued since founding branching Businesses acquired out from medical endoscopes 6 2016/3/30 No data copy / No data transfer permitted Distribution of Sales in Scientific Solutions Business Life science field Industrial field Industrial Japan Biological microscopes Asia microscopes 16% Industrial 27% endoscopes 42% 32% Nondestructive 58% testing equipment 25% Americas X-ray Europe, fluorescence Middle East, and Africa (XRF) analyzers 7 2016/3/30 No data copy / No data transfer permitted * Based on forecast figure for FY2016 net sales Todayʼs Agenda 1.Business Overview 2.Recognition of Current Conditions 3.Market Trends 4.Business Strategies 5.Targets and Indicators 8 2016/3/30 No data copy / No data transfer permitted Customer Segments and Scientific Solutions Business Customer Product segment Application segment LS Research Life science field research Sample preparation and cell Wetlab Biological culture processes microscopes Clinical Pathological examination Medical and biology education Education institutions 9 2016/3/30 No data copy / No data transfer permitted Customer Segments and Scientific Solutions Business Customer Product segment Application segment Aircraft and high-speed rail Infrastructure Power generation equipment and Maintenance petrochemical plants General structures Integrated manufacturing process X-ray Nondestructive Industrial Industrial fluorescence quality management testing Manufacturing microscopes endoscopes (XRF) equipment Defect analysis analyzers Material research Resource inspection and mining Environment & Metal and material analysis Natural Environmental pollution Resource assessments 10 2016/3/30 No data copy / No data transfer permitted Recognition of Current Conditions Review of Medium-Term Vision Period (FY2013~) FY2013 FY2015 FY2016 (Billions of yen) Target Actual Target* Actual Forecast Net sales 97.0 85.5 108.0 103.9 106.0 Operating income 5.5 3.5 8.0 6.8 8.0 Operating margin 6% 4% 7% 7% 8% Measure Evaluation Aggressively expand Introduced new digital industrial microscopes, ultracompact △ videoscopes, guided wave technologies for realizing more-efficient product portfolio nondestructive testing, automated cell counters for cell culture, etc. Successfully improved operating margin by withdrawing from and liquidating unprofitable businesses, rationalizing domestic and overseas Reform earnings structures ○ production bases, reorganizing sales organizations, and improving asset efficiency through structural reforms Acquire shares in emerging Constructed sales systems in Indian subsidiary ○ Launched affordable models of industrial endoscopes, XRF analyzers, markets ultrasonic nondestructive testing facilities, etc. Strengthen customer Shifted from product segment based system for business activities to △ customer segment based system, defined 7 priority customer segments, contacts and made progress in constructing systems for strategies 11 2016/3/30 No data copy / No data transfer permitted * Targets are figures set when announcing the medium-term vision in June 2012. Recognition of Current Conditions Conglomeration of individually optimized, Strategies and resource allocation through product-segment-specific organizations Companywide optimization Differing target applications and Improved development and sales customers efficiency from clarified target customer Maturing technologies and markets for segments certain product segments Solutions provided from customer Inefficiency born out of redundant perspective functions and processes Global optimization pursued through complete overhaul of function and regional frameworks Investments focused on growth fields 12 2016/3/30 No data copy / No data transfer permitted Todayʼs Agenda 1.Business Overview 2.Recognition of Current Conditions 3.Market Trends 4.Business Strategies 5.Targets and Indicators 13 2016/3/30 No data copy / No data transfer permitted Market Trends Market Scale* Customer Market Trends Field (Growth Share* Competitors segment (Operating Environment) Forecasts) Growing needs in areas ranging from observation to analysis in drug discovery ¥80.0~¥100.0 Zeiss(Germany) LS Approx. and regenerative medicine markets billion Leica (Germany) Research 25% Market heavily influenced by government (CAGR:1-2%) Nikon(Japan) Life science Life budget trends Future cell culture support industry market ¥6.0~¥8.0 Zeiss(Germany) Approx. Wetlab growth projected in drug discovery and billion Leica (Germany) (Cell cultures) 35% regenerative medicine fields (long term) (CAGR:6-7%) Nikon(Japan) 14 2016/3/30 No data copy / No data transfer permitted * Source: Olympus Corporation Market Trends Market Scale* Customer Market Trends Field (Growth Share* Competitors segment (Operating Environment) Forecasts) Dominating top share held by Olympus due to establishment of anatomic pathology workflow in microscope field ¥20.0~¥30.0 Zeiss(Germany) Clinical Approx. (Pathological Expanding range of examination methods billion Leica (Germany) Life science Life 60% examination) stemming from introduction of new (CAGR:3-4%) Nikon(Japan) technologies into overall examination market in conjunction with population aging and advances in cancer treatments Zeiss(Germany) Growing possibilities for education systems ¥8.0~¥10.0 Approx. Leica (Germany) Education using digital imaging at medical education billion 35% Nikon(Japan) facilities (CAGR:1-2%) Motic(China) 15 2016/3/30 No data copy / No data transfer permitted * Source: Olympus Corporation Market Trends Market Scale* Customer Market Trends Field (Growth Share* Competitors segment (Operating Environment) Forecasts) Infrastructure aging expected in developed countries and new infrastructure construction anticipated in ¥70.0~¥90.0 Infrastructure Approx. emerging countries Maintenance billion GE(U.S.) Ongoing growth in aircraft and high- 35% speed rail demand (CAGR:7-8%) Severe lack of inspection technicians Industrial Long-term growth in automotive, GE(U.S.) aviation, electricity, and other markets ¥100.0~ Zeiss(Germany) Approx. Manufacturing Advances in process efficiency ¥120.0 billion Leica(Germany) improvements as illustrated by Industry 25% Nikon(Japan) 4.0, etc. (CAGR:4-5%) KEYENCE(Japan) Rising need anticipated for energy and materials in emerging countries and for Environment & ¥7.0~¥9.0 energy, materials, and recycling in Approx. ThermoFisher Natural developed countries billion (U.S.) Resource 25% Growing expectations for food and (CAGR:4-5%) environmental safety 16 2016/3/30 No data copy / No data transfer permitted * Source: Olympus Corporation Todayʼs Agenda 1.Business Overview 2.Recognition of Current Conditions 3.Market Trends 4.Business Strategies 5.Targets and Indicators 17 2016/3/30 No data copy / No data transfer permitted Business Strengths (SWOT Analysis) Superior technological prowess and quality for Technological maturity of certain optical, imaging, ultrasound, and XRF products Top-class market for all product segments Increased manufacturing and sales costs Global sales, marketing, and service networks for certain products 強み 弱み Lost opportunities and low efficiency due to product segment based business operation S W O T Long-term demand growth for social infrastructure construction in emerging countries and aging social infrastructure maintenance機会 in 脅威 developed countries Emergence of alternative technologies Continuous growth in demand in aviation, Economic slowdown in emerging automotive, and other manufacturing industries countries New needs arising from regularization of Ups and downs for specific customer regenerative medicine segments 18 2016/3/30 No data copy / No data transfer permitted Basic Policies Realize continuing organic growth and keep operating margin consistently above 10% through initiatives tailored to customer segments Actively expand portfolios targeting