Hamburg/Tokyo, 05/12/2023 | Press Release | Company Olympus Outlines Core Priorities Behind Refreshed Medical Strategy
Patient Safety, Innovation and Productivity make up three focuses to lead the global MedTech company forward
Olympus Corporation (Olympus), a global MedTech company committed to making people's lives healthier, safer and more fulfilling, has outlined a new strategy behind its key priorities of patient safety and sustainability, innovation for growth, and productivity as it reaffirms its position as a global MedTech company.
This new strategy follows the company’s corporate transformation plan "Transform Olympus," announced in January 2019, and the previous corporate strategy announced in November 2019. In that former strategy, it declared the target of achieving an adjusted operating margin of over 20% in fiscal year 2023, a figure expected of a global medical technology company.
In response, top management and all employees have come together over the past three years to implement all manner of initiatives and drive reforms. As a result, the adjusted operating margin, which stood at 9.2% in fiscal year ending March 31, 2019, dramatically improved to 20.0% in fiscal year ending March 31, 2023.
Moving forward, the company will manage both growth and profitability. The targets under this approach are to sustain a revenue Compound Annual Growth Rate (CAGR) of 5% and an operating margin of around 20% to deliver an Earnings Per Share (EPS) CAGR of more than 8% annually from the fiscal year ending March 31, 2024 to the fiscal year ending March 31, 2026.
The company will continue to focus on disease states in specialties where it can have the greatest impact on elevating the standard of care and as a clear leader in gastroenterology, urology, and respiratory, building a presence in growth markets that offer it significant, long-term potential.
Committed to maintaining its leadership amongst global MedTech peers in environmental, social, and governance matters, Olympus is developing a set of meaningful KPIs to guide and track its actions related to governance and reporting transparency, improve the health and equity of the organization, and creating a responsible supply chain and carbon-neutral footprint.
Olympus aims to have 30% women leaders globally by 2028 and starting in Japan, the company will work to ensure as many male colleagues take parental leave as possible – a goal the organization plans to accomplish by 2026. Carbon neutrality1 has been high on the agenda for the past several years and Olympus is expanding its target for carbon-neutral operation sites to include net-zero greenhouse gas (GHG) emissions by 20402.
“Collectively as an organization, our mission is to grow our impact, drive innovation and maintain a focus on our ESG priority areas. With our refreshed medical strategy, we have in place the blueprint that sets the direction for how our business will grow over the medium to long term and lead us on the path to a future of growth,” said Stefan Kaufmann, President and CEO of Olympus.
“As a leading global MedTech leader, Olympus is always looking to elevate the standard of care. This has been part of our DNA since the company introduced its first endoscope over seventy years ago. We have and will continue to develop differentiated solutions along the care pathway, and we continue to lead in precision treatment with a comprehensive portfolio of access, therapeutic and tissue manipulation technologies, and advanced visualization with an extensive portfolio of solutions that makes the invisible, visible. And through embracing innovation, we are utilizing our position as the MedTech leader for endoscopy-enabled care where we will harness opportunities enabled by digital technologies. We will strive to bring about an intelligent endoscopy ecosystem that benefits our customers and patients and matches several unmet needs.”
For presentation materials, please visit www.olympus-global.com.
1 In our site operations across scope 1 and 2 by 2030
2 Net-zero GHG emissions across scope 1, 2, and 3 by 2040
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