|May 10, 2006|
|Olympus Corporation (President: Tsuyoshi Kikukawa) has drawn up a new three-year Corporate Strategic Plan (the 2006 CSP) to be launched in fiscal 2006 for completion in the term ending March 2009.|
|The management goals described in the plan call for maximizing corporate value through the recovery and enhancement of value creation capabilities. The CSP's targets for its final term ending March 2009 include Net Sales of 1.2 trillion yen and Operating Income of 100 billion yen - 1.2 times and 1.5 times the respective figures for the term ended March 2006.|
|The basic business development strategy in the Medical Systems Business centered on medical endoscopes is to contribute to society and steadily expand profits by offering cheaper, safer, more efficient medical tools. The goal in the Life Science Business is to promote the evolution and development of existing businesses to ensure long-term growth in the next-generation medical treatment sector. In the Imaging Systems Business centered on digital cameras, Olympus will build a sustainable earnings structure to create a framework for generating stable profits. It will also apply resources to creating new businesses with a view to nurturing related business in the medical and health sectors, and the imaging, information and communications sectors. To this end, it will make strategic investments while at the same time striving to strengthen its financial base by considering ways of reducing interest-bearing liabilities.|
|Medical Systems Business
Since it successfully created the world's first practical gastro camera in 1950, Olympus has worked on developing fiberscopes and video scopes that are capable of making direct internal observations of the body. Today, endoscopes can be used in performing treatments as well as diagnoses and are widely used in minimally invasive diagnoses and medical treatments that require no abdominal operations. In this way, they contribute to enhanced QOL (quality of life) for patients by offering cheaper, safer, more efficient medical tools and reducing medical expenses.
|Life Science Business
Olympus aims to become a total systems supplier in the area of diagnostics equipment, a segment deriving from the company's roots-micro-imaging (microscopes)-and in biosciences. By encouraging the evolution of existing businesses, it will seek long-term growth in the next-generation medical systems sector, offering the most suitable preventive and treatment methods for each individual.
|Imaging Systems Business
To create a structure that will yield profits on a continuous basis, Olympus will rigorously pursue a process of selectivity and focus, channeling its resources into digital SLR cameras, compact digital cameras, optical components and other businesses based on one of its key strengths, opto-digital technology. The company will engage in developing both product and business platforms. The development of product platforms in particular is designed to promote differentiation and enhance development and manufacturing efficiency, and quality levels.
|Information and Communications Business, Others
Olympus has established a firm foothold in these areas as progress in the "informatization" of society has boosted the importance of business in the network, technology and mobile segments.
|In the area of non-destructive testing, Olympus will in the near future propose ideal solutions for maintenance systems, including high-precision measuring technology and remote inspections. In the industrial printers segment, Olympus will supply products to satisfy the needs of an expanding range of business scenarios.|
Steady Creation of New Businesses and Strategic Investment
Olympus will tackle the issue of creating new businesses in the Medical and Health, Imaging, Information and Communications, and Industrial Systems segments. For this reason, it will engage proactively in strategic investment in areas such as R&D investment for new business creation, strategic investment in bio-life science, and active investment in M&A to strengthen existing businesses.
|Strengthening Stockholder Returns and Financial Base
Olympus aims to maintain a stable dividend payout ratio of 20% for returning profits to shareholders. It also aims to reduce its dependency on interest-bearing debt and build a stronger financial profile.
|Promoting Brand Management
Olympus adopted brand management at the time of the previous CSP and has adhered to it because it believes the corporate brand represents an overall assessment of the company and its commitment to society. The latest CSP uses the same approach for promoting brand management and Olympus will continue to work on maintaining and enhancing its brand value.
This presentation contains forward-looking statements that reflect management's current views, plans and expectations. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause Olympus's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements.
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