Healthcare Business
In the Healthcare Business, we continued our efforts to boost sales of Computed Radiography (CR) and Digital Radiography (DR), including REGIUS MODEL 110/210, diagnostic workstations, and network devices. We also worked to boost sales in our service solution business. As a result, unit sales of digital input equipment in the REGIUS series increased from the previous fiscal year in both Japan and overseas markets. On the other hand, sales of film products continued to decline due to a continued increase in use of filmless equipment. FY March 2011 was between seasons for new products, and earnings were influenced by falling prices of existing products and amounts for upfront costs, including development costs, as well as the effects of the appreciation of the yen. As a consequence, net sales in the Healthcare Business declined 18.6% year on year, to ¥84.9 billion, and operating income stood at ¥0.1 billion, down 88.3% year on year.
For the past several years, we have not launched any new digital X-ray diagnostic imaging systems, and with sales of X-ray film declining, mainly in Japan, the Company has been struggling somewhat. Growth in this Business is another aim during the three years of G PLAN 2013. Our main growth drivers for this Business include launching new digital equipment, developing new markets in Asia, and expanding service revenues, mainly through maintenance services.
In digital equipment we will target the needs of the clinic market in Japan and emerging markets for small CR. In flat panel X-ray DR we will target the market for small and medium-sized hospitals, expanding our product lineup to meet the needs of these customers. With this digital equipment and a firmly customer-centered approach, we believe we can redirect this business to a growth trajectory.
We will drive this growth through services, maintenance, and added-value IT services targeting our customer base in new digital equipment products. In the Asian markets, we expect to see steady sales growth, driven by expansion in demand not only for new CR, but also for X-ray film.