Sysmex Corporation (HQ: Kobe, Japan; President: Hisashi Ietsugu) has formulated a new Mid-Term Management Plan for the three years ending March 31, 2014. The new plan is designed to maintain our high level of growth and further enhance profitability.
This Group Mid-Term Management Plan calls for the extension of the long-term goals and core strategies established in 2007. Through these developments and initiatives to meet the key objectives that we will be focusing on over the next three years, as well as investing some ¥45.0 billion in R&D, by the final year of the plan-the fiscal year ending March 31, 2014-we expect to achieve net sales of ¥175.0 billion and operating income of ¥26.5 billion. We also plan to invest aggressively in M&A in order to expand beyond the limits of organic growth.
The global healthcare market promises ongoing growth, driven by graying populations in advanced countries and efforts in emerging markets to expand their healthcare infrastructures in line with population increase and economic development. The industry also presents new growth opportunities by organizations that aggressively leverage advances in genetic/molecular diagnostics and communication technologies. At the same time, however, competition is likely to grow fiercer, as players from other industries enter the fields and the participation by companies in emerging countries becomes more conspicuous.
*1: | Acronym for in-vitro diagnostics. |
*2: | Composite word (Therapy + Diagnostics) means testing with high clinical value to realization of personalized medicine |
|
Year Ending March 31, 2012 |
Year Ending March 31, 2014 |
CAGR |
Net sales |
¥138.0 billion |
¥175.0 billion |
12.0% |
Operating income |
¥20.5 billion |
¥26.5 billion |
13.2% |
Operating income ratio |
14.9% |
15.1% |
— |
ROE |
13.2% |
13.8% |
— |
Free cash flow |
¥4.6 billion |
¥10.0 billion |
— |
|
Year Ending March 31, 2012 |
Year Ending March 31, 2014 |
CAGR |
Japan |
¥39.5 billion |
¥42.5 billion |
3.3% |
Americas |
¥29.4 billion |
¥38.5 billion |
13.2% |
Europe |
¥39.6 billion |
¥48.0 billion |
10.7% |
China |
¥19.2 billion |
¥32.0 billion |
28.5% |
Asia Pacific |
¥10.3 billion |
¥14.0 billion |
15.4% |
USD |
EUR |
CNY |
SGD |
¥85 |
¥115 |
¥12.7 |
¥64 |
1) |
Accelerate Growth in Asia and Other Emerging Markets High levels of growth are forecast for the emerging markets such as China, South and Southeast Asia and others, and we will reinforce our sales and support networks within these markets to take advantage of robust ongoing growth in the fields of hematology and hemostasis. To support this rapid growth, we will enhance our manufacturing and supply structures to raise their efficiency, in some cases by shifting the manufacture of reagents to local factories. In preparation to enter the fields of clinical chemistry and immunochemistry, we will expand our product portfolio of instruments and reagents, taking advantage of alliances and other methods. We will tailor our business model to volume zones in high-growth emerging markets by employing financing schemes and introducing comprehensive solutions that package together instruments, reagents, support, IT and other services for multiple testing fields. |
2) |
Establish Undisputed Leadership Position and Increase Profitability in Hematology Hematology is a core field of business for the Sysmex Group, constituting an important base of revenues and profits. By launching a new flagship model, the XN-Series, we plan to further solidify our global leadership position in this area. To meet increasingly sophisticated and diverse testing needs, we will redouble our efforts to offer solutions incorporating communications technologies and support, working proactively to offer new value as the global leader. |
3) |
Accelerate Growth in Non-Hematology Fields*3 and Lay the Foundations for Future Expansion As our second pillar of business, we will strive to increase our presence and achieve growth in IVD categories outside the field of hematology. In the fields of hemostasis and urinalysis, we will work to develop our business on a global scale through the combination of in-house developments and alliances. As well as by enhancing our portfolio of products, centered on instruments, we will develop non-hematology reagents and their raw materials, bolster our manufacturing and supply structures, and lay the groundwork for future growth. *3: Non-hematology fields: in-vitro diagnostics fields excluding hematology but including hemostasis, immunochemistry, urinalysis, clinical chemistry and others. |
4) |
Promote Commercialization of the Life Science Business Sysmex will continue introducing its system for rapid detection of breast cancer lymph node metastasis based on the one-step nucleic acid amplification (OSNA) method, which enables automated examinations for the first time in Japan, to other key markets around the world in addition to Japan and Europe. The Company remains committed to application of the OSNA method to other types of cancer, and to increasing synergies by expanding its product portfolio. We will also take advantage of new testing methods to develop lab assay services*4 and promote other efforts to commercialize the life science business. *4: Provision of laboratory testing results as services |
5) |
Proactively Leverage M&A and Alliance Opportunities to Expand Our Portfolio of Businesses and Realize discontinuous Growth In addition to accelerating growth in the hematology, non-hematology and life science businesses, we plan to mount an aggressive effort to expand our portfolio of businesses by taking advantage of M&A and alliance opportunities. This should enable us to accelerate the Group's growth beyond the limits of organic one. To this end, in addition to our existing departments in charge of formulating strategies and promoting business, we have set up a department dedicated to M&A and alliance activities. By pursuing these opportunities, we will work actively to uncover new business opportunities |
Disclaimer
This Mid-Term Management Plan incorporates judgments and expectations based on the information available to management at the time the plan was formulated. Accordingly, the plan is subject to revision in line with changes in economic conditions and industry trends in major markets.