Olympus Corp. · TSE:7733
Olympus — 38th Annual J.P. Morgan Healthcare Conference (January 2020)
27 slides from Olympus's conference presentation, Jan 15, 2020
Slide 1: 38th Annual J.P. Morgan Healthcare Conference
38th Annual J.P. Morgan Healthcare Conference Olympus Corporation | Yasuo Takeuchi , President and CEO | 15 January, 2020
Slide 2: Disclaimer
Disclaimer This material contains forward-looking statements that reflect management’s current views, plans, and expectations based on information available at the time of preparation. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, un
Slide 3: We're Olympus
OLYMPUS O 1 We’re Olympus
Slide 4: Making people's lives healthier, safer and more fulfilling
OUR PURPOSE Making people’s lives healthier, safer and more fulfilling In line with our Corporate Philosophy, we are evolving our corporate culture to be competitive and performance-driven and focusing on creating value to our customers
Slide 5: Olympus – Medical Division Snapshot
Olympus – Medical Division Snapshot 634.3 70% 20,000 Billion yen Global market share Patents Total Medical in gastrointestinal across our Medical revenue revenue FY2019 endoscopic equipment product portfolio by region ~3% ~8% 39 CAGR CAGR A global footprint FY2017-FY2019 FY2017-FY2019 with a mix of
Slide 6: Our Corporate Strategy
OLYMPUS O 2 Our Corporate Strategy
Slide 7: Our strategic aspiration and performance metrics
Our strategic aspiration and performance metrics Sustain 5-6% growth annually Our aspiration is to become a globally-leading medtech company contributing to Deliver >20% consolidated people’s lives by delivering corporate operating margin1 innovative solutions that benefit patients, healthcare profe
Slide 8: Our strategic pillars
Our strategic pillars Focus the corporate portfolio, centering A on Medical Maintain leadership in reusable endoscopy Complement our portfolio with single-use endoscopes to accelerate growth and address B unmet needs Evolve the endoscopy commercial model – shift towards service-based offerings and p
Slide 9: Our corporate portfolio – Medical is primary focus
Our corporate portfolio – Medical is primary focus Our corporate portfolio Increasing our focus Operating margin1 % Size of bubble = FY2018 revenue 20% We will regularly assess our portfolio for fit with our corporate aspiration Medical - ESD and focus our growth investments in Medical Medical - TSD
Slide 10: Further strengthen leadership in endoscopy
Further strengthen leadership in endoscopy To enhance the value we bring in early diagnosis, we aim to have the most comprehensive endoscopy portfolio on the market, supported by evolution of the commercial model Maintain leadership in reusable endoscopy through continued innovation and commercial e
Slide 11: Launch of New Endoscopy System
Launch of New Endoscopy System Setting a new standard for endoscopic diagnosis and therapy with our new endoscopy system New endoscopy system aims to Detection CADe1 Leverage AI-enabled software to improve lesion detection introduce technologies that set a new standard for detection, Characterizat
Slide 12: Increasing demands for Disposable Endoscope
Increasing demands for Disposable Endoscope Where single-use endoscopes create differentiated value Infection control requirements Single-use endoscopes may eliminate the need for reprocessing and maintenance, which can be beneficial where a higher-level of infection control is required e.g., high r
Slide 13: Strong Momentum in China
Strong Momentum in China China is our fastest-growing market We will make investment to capture more value in China ESD revenue growth p.a., 2016-18 Continue to grow the pool of qualified healthcare professionals and conduct technical research to China 17-20% better understand customers’ needs e.g
Slide 14: Strategic Target for Endoscopy Business
Strategic Target for Endoscopy Business We have initiatives in place over the next 3 years to help realize our long-term strategy in endoscopy Contribute to improving quality of endoscopic procedure by supporting healthcare professionals (HCPs) in the detection, characterization, staging and Produ
Slide 15: Focus and scale our TSD business
Focus and scale our TSD business To accelerate growth in TSD and enhance our value in minimally invasive therapy, we will focus on category leadership across three therapeutic areas FOCUS THERAPEUTIC AREAS IN TSD 3 1 1 GI-ENDOTHERAPY 2 UROLOGY 3 RESPIRATORY- 2 ENDOTHERAPY ~$4.4B ~$1.8B ~$0.3B market
Slide 16: High Single-Digit Growth in P3Y
High Single-Digit Growth in P3Y We have realized growth of over 8.0% CAGR in TSD business by introducing new products PT Others ENT ENT ~8.7% revenue growth Urology and UG Gynecology CAGR Energy In the past 3 years ENG Devices GI and ET Respiratory THUNDER THUNDER SnareMaster BEAT Open BEAT Open Plu
Slide 17: Strategic Target: Therapeutic Solutions
Strategic Target: Therapeutic Solutions Our key near-term growthWe have initiatives in place to drive growth in TSD in the next 3 years initiatives GI-Endotherapy Expand clinically differentiated product offerings across all key categories, including ERCP, GI stent and hemostasis devices through b
Slide 18: Our corporate strategy – Growth Enablers
Our corporate strategy – Growth Enablers Improving our operating and financial performance through a major transformational program across the whole business over the next 3 years Building capabilities fit for growth including strengthening our QA/RA function and driving efficiency in our R&D operat
Slide 19: Transform Olympus is all about transforming the way we work
Transform Olympus is all about transforming the way we work We have embarked on a major efficiency improvement program, Transform Olympus, across the company Planning process Targeted areas Example initiatives Detailed benchmarking Discontinue projects with low ROI Research & vs. global peers
Slide 20: Transform Olympus will position us for long term growth
Transform Olympus will position us for long term growth The outcome of Transform Olympus will be seen in three areas within 3-4 years Higher Long-term Growth Higher Profit High Performance Culture Capacity Identified Profit Improvement Opportunity: Employees trained in Greater ability to target
Slide 21: Our Growth and Performance Impact
Our Growth and 03 Performance Impact
Slide 22: 2023/3 Financial guidance
2023/3 Financial guidance 2020/3 Target 2023/3 Operating Margin1 Approx. 11% > 20% 1 Adjusted for extraordinary items Page 22 Corporate Strategy
Slide 23: Sequencing of our growth and transformation initiatives
Sequencing of our growth and transformation initiatives 3 years Compete to Grow Transform to Perform Focus and Simplify to capture growing value pools that to position Olympus optimally drive long-term sustainability to have immediate, early impact for profitable growth on corporate performance Ta
Slide 24: 2023/3 Supporting financial indicators
2023/3 Supporting financial indicators 2020/3 Target 2023/3 Free cash flow growth1 ¥50Billion > 20% CAGR from FY2020/3 ¥ ROIC1 Approx. 10% > 20% EPS Growth1 ¥47 > 25% CAGR from FY2020/3 1 Adjusted for extraordinary items Page 24 Corporate Strategy
Slide 25: Cash allocation – M&A and Return to Shareholders
Cash allocation – M&A and Return to Shareholders Prioritize allocation of funds toward growth investments as well as quality Business enhancement investment Strategic consideration of M&A based on business strategy Maintain current policy to achieve 30% total shareholders return by FY Sharehol
Slide 26: Making people's lives healthier, safer and more fulfilling
OUR PURPOSE Making people’s lives healthier, safer and more fulfilling In line with our Corporate Philosophy, we are evolving our corporate culture to be competitive and performance-driven and focusing on creating value to our customers
Slide 27: OLYMPUS
OLYMPUS
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