What Sysmex Aims for
Based on the “Sysmex Way,” the corporate philosophy of the Sysmex Group, Sysmex
seeks to provide high-value-added products and services and to foster innovation. By
doing so, we aim to realize a healthier and more fulfilling society through the enhancement of diagnostic value and the resolution of medical issues.

19Sysmex Report 2022

Column India’s Healthcare Environment
The spread of COVID-19 highlighted the issue of healthcare infrastructuredevelopment, particularly in rural areas. The Indian government respondedby allocating approximately 860 billion rupees to its healthcare budget for
fiscal 2022–2023 to promote an increase in primary healthcare facilities toimprove standards in rural areas. Large private hospitals are also working
with the government and their respective state governments to develop
and enhance local healthcare systems. Demand for medical testing has
been increasing significantly, and in addition to faster and more automatedprocessing of multiple specimens, there is a growing need to standardize
test quality.
Sysmex will contribute to improving the quality of medical care in India
by providing a stable supply of products and appropriate service and support to ensure stable operation of the testing systems at medical facilities.

Sysmex Report 202220

Materiality
Materiality Items Supporting Sustainable Growth

Dialogue Targeting Stakeholder Engagement

1

Resolution of medical issues
through products and services

SDG Targets• Resolution of medical issues through innovation• Improvement in accessibility to healthcare

Corresponding
Materiality

Stakeholders

3

Responsible provision ofproducts and services

Realization of an attractive
workplace3• Corporate culture surveys and dialogues basedon their results• Creation of a global internal reporting system• Creation of a labor-management council• Provision of a comfortable workingenvironment• Promotion of diversity and inclusion• Development of human resources• Promotion of health and occupational safety

52BusinessPartners• Joint research and development partners(more than 200 themes)• Suppliers (approximately 250 Tier 1suppliers)• Distributors (more than 600 companies)

4

Environmental consideration• Environmental consideration through productlifecycle• Reduction in environmental burden throughactivities at business offices• Communication through open innovation andalliances• Communication based on procurement policies• Holding of meetings with distributors

5Strengthening of governance• Corporate governance• Compliance• Risk management

4154Shareholders and investors(approximately 14,000)• Proactive disclosure and dialogue• Holding of various briefings

Governments and administrations
Regions and societies (including NPOs)• Collaboration and dialogues with government
agencies and international organizations• Participation in local communities

Shareholders

51

Sustainable growth• Sales growth• Increased operating profit• Generation of free cash flow

2Society4>>State of Progress toward Sustainability Targets P47

21Sysmex Report 2022

The Process of Identifying our Materiality
STEP 1: Understand and Organize the Issues

STEP 2: Prioritize

STEP 3: Confirm Suitability

Elicit global social issues andrequests from stakeholders.

Evaluate medium- to long-termrisks and opportunities from theperspectives of stakeholders andSysmex, and order these according
to priority.

Deliberate and approve atmanagement meetings.

Activity Report andCorporate Overview

Sysmex has identified priority issues (materiality) with a viewto realizing a sustainable society and achieving sustainablegrowth for Sysmex.
Sysmex’s materiality items are priorities we have identified by taking into account the needs and expectations elicitedthrough stakeholder engagement and Sysmex’s internal andexternal operating environments. We identified these priorities
by making an overall assessment along two axes, the “degreeof importance for Sysmex’s stakeholders” from a medium- tolong-term perspective, and from the perspective of risks andopportunities, the “degree of importance for Sysmex.”
In addition, we review and verify these items when formulating mid-term management plans. These were previously
verified in fiscal 2020. Some of the content was updated toreflect changes in the operating environment, such as growing
demands from outside the Group.
To make progress toward our targets more visual andeffective, in the fiscal 2021 revision we set “sustainabilitytargets” as specific KPIs in line with the mid-term management plan. We also developed action plans and activities forresponsible divisions. Members of the Managing Board confirm progress toward sustainability targets, which is reported
regularly by each department at meetings of the ManagingBoard and at quarterly management meetings. In addition, theentire Company works together on initiatives when discussing
new measures.
As our business expands, our stakeholders have grown
more diverse. Nevertheless, our fundamental management
philosophy of instilling confidence among our stakeholders
has remained unchanged. As a Group conducting business inthe healthcare sector, Sysmex works alongside its business
partners and employees to provide products and services to
medical institutions and other customers in an effort to resolve healthcare issues.
Sysmex will continue to engage proactively in dialogues
with stakeholders to co-create value in a sustainable manner.

(See P101 for details related to stakeholder dialogues.)

Corporate Governance

Sysmex’s Materiality

Management Resources andBusiness Activities

Employees

Sysmex Group employees(more than 9,000)• Pursuit of quality and trust• Strengthening of supply chain management

Strategies for Value Creation• Communication through sales and service andsupport activities• Collection of the voice of the customer (VOC)• Holding of scientific seminars (online)
What Sysmex Aims forCustomers

Medical institutions and commercial labs
in more than 190 countries and regions

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Main Dialogue with Stakeholders

12Message

Materiality

Materiality Matrix
https://www.sysmex.co.jp/en/csr/management/materiality.html

Sysmex Report 2022

22Sysmex’s Value Creation: Aiming for Sustainable GrowthMessage

Our business centers on in vitro diagnostics (IVD), based on our mission of “Shaping the Advancement ofHealthcare.” This mission is expressed in the “Sysmex Way,” the corporate philosophy of the Sysmex Group.
By leveraging our unique management resources, we provide high-value-added products and services, aimingto extend healthy lifespans and optimize medical costs.

Expectations and Requests for Resolving Social and Medical Issues

Value Provided, Impact
Customer Feedback Aimed at Creating New Diagnostic Value

Medical Institutions
R&D structure
for resolving
medical issues

Main Business Activities

Procurement system
to realize a stable supply(Hospitals and Commercial Labs inMore than 190 Countries and Regions)

1 Enhanced Testing Systems
2 More Productive Laboratories
3 Help in Determining Diagnoses andTreatment Methods
4 Lower Environmental Impact for
Medical Institutions

R&D

R&D
Intellectual
Capabilities PropertyInstruments• Early detection of disease• Optimal diagnoses and selectionof treatment methods that
reduce the burden on patients
healthcare

Cells

Reagents+ Optimization of medical costs+ Advancement of medical care

Sysmex(Manufactured Capital) >>P61

Products>>>For specific value provided, see P25.

Proteins

ITTechnology
Platforms

Regulatory Registration

Main Values Provided
by Sysmex (Outputs)
1 Development and Provision of a Diverse

Regulatory application structure for delivering
products throughout the worldProductionSociety+ Expansion of the working population+ Collaboration with suppliers(approximately 250 companies*)*Tier 1 suppliers+ More than 9,000 employees– Industrial accidents+ Income taxes paid: ¥21.0 billion

Corporate Governance

Production bases that ensure high quality
and a stable global supply

Product Portfolio
2 Support for the Healthcare Professionals
Who Underpin Testing
3 Development and Provision of Tests withHigh Diagnostic Value
4 Environmentally Responsible ProductDevelopment and Business Activities

Management Resources andBusiness Activities

Genes

Production andDistribution Structure>>P62+ Extending healthy lifespans+ Improvement in accessibility to(Intellectual Capital) >>P59-60, 67(Social and Relationship Capital)

Patients, Healthy
People, Healthcare

Strategies for Value Creation

Procurement

Global Sales andService Structure

What Sysmex Aims forManagementResources
for CreatingValue(fiscal 2021)+ Dividends: ¥15.2 billion (fiscal 2021)
Stable Financial Foundation(Financial Capital) >>P51

Distribution

Sales

HR Strategy

Diverse Human Resources(Human Capital) >>P65

Electricity,Water Resources, etc.

(Natural Capital) >>P63

23Sysmex Report 2022

Global sales structure

Diverse human resources to support businessIntellectual Property Strategy

Environmental Initiatives

Intellectual property
portfolio that reinforces
global competitiveness

Environmental initiatives
that promote the overallvalue chain

Reinvestment

Service and support toenhance customer
satisfaction

Environment– CO emissions– Water consumption– Electricity use– Waste emissions– Use of animal-derived raw materials
2Activity Report andCorporate Overview

An efficient supply chain for delivery tomore than 190 countries and regions

Service and Support+ Main impacts we want to increase– Main impacts we want to reduce

Sysmex Report 2022

24

Providing Value to Patients, Healthy People, Healthcare and Society
By meeting the needs of medical institutions and providing various sorts of value corresponding to different lifestages, we work to optimize medical costs, extend healthy lifespans and advance healthcare.
Message

Providing value forhealthcare and society

Testing needs: Degree of need

• Early detection andprevention• Contribution toepidemiological research(Number of medical facilities, number of tests, and screening rates.)(Number of cancer genome tests and research papers.)

Needs-based testing

Selection of diagnosis and treatment methods• More diverse testing
locations in line withmedical circumstances• Improved global health• Standardization of testing
operations• Increased productivity atlaboratories• Sophisticated diagnostics
incorporating advancedtechnology• Decisions on optimaltreatment methods• Promotion of personalized
medicine

Expansion of theWorking Population(Treatment remission rates
and cure rates.)

Improved prognosis
and quality of life

• Regular and appropriate
prognosis management
using digital technology• Spread of pre-symptomaticand preventive medicine• Expansion of testing needs
in clinics and homes• Stronger initiatives to link
medical information among
medical institutions• Growing need for digital
medicine (epidemiologicalstudies and RWDcollaboration)• Rise in testing based on
disease priorities bycountry and region• Differences in testing
systems and standards
among countries and regions• Selection of equipment to
be installed on the basis offinancial circumstances• More diverse tests handedby each laboratory
technologist• Personnel reduction• Shrinking unit prices on
tests• Growing need forspace-saving instruments• Growing need for
integrated testing in
multiple testing fields• Advanced testing needs
leading to advances inhealthcare• Need for the development
of diverse biomarkers• Stronger initiatives toward
the rapid coordination ofdiagnosis and treatment•Development ofpersonalized medicine andgenomic medicine• Standardization ofdiagnostic results• Expectations of improved
treatment efficacy•Growing need for digital
healthcare for diagnosis,
treatment data, andchronic conditions• Initiatives toward
developing an appropriate
prognosis management
infrastructure

Developed countries:
Emerging markets:

Developed countries:
Emerging markets:

Developed countries:
Emerging markets:

Developed countries:
Emerging markets:

Developed countries:
Emerging markets:

Developed countries:
Emerging markets:

Corporate Governance

Conditions at
medical institutions

Prevention,
health maintenance

Advancement of Medical CareManagement Resources andBusiness Activities(Direct provision of value)(Screening rates andhealth-adjusted life expectancy.)

Improvement in Accessibility to Healthcare

Strategies for Value Creation

Providing value topatients andhealthy people

Extending HealthyLifespans

Costs (Medical economy)

What Sysmex Aims for(Impact measurementindicators)

Optimization of Medical

Activity Report andCorporate Overview

Development and Provision of a Diverse Product Portfolio
Support for Healthcare Professionals Who Perform Testing

Sysmex’s response

25

Sysmex Report 2022

• Development of liquidbiopsy and primary careproducts• Integration of various
types of data withCaresphere• Expansion of the productportfolio• Solution proposals thatcombine multiple IVD
fields• Interface standardization,automation, andsystematization• Adoption of IoT for
instruments• 24-hour service andsupport structure• Training support forlaboratory technologists

Development and Provision of Tests with High Diagnostic Value• Alliance agreements andproactive joint researchwith external institutions• Ongoing investment in
R&D and technology
development• Sophisticated genedetection technologies• Development of diagnostic
systems and biomarkers• Utilization of liquid biopsytechnologies• Scientific support• Building of a remotediagnostic platform• Development ofmonitoring indicators• Product development toachieve recurrencemonitoring

Sysmex Report 2022

26

Worksite Commentary
Japan: Person in Charge of Regional Medical Care (Aomori Prefecture)

Morioka Sales OfficeSendai Branch
Sales & Marketing East/JapanTom Tojo
Director
Corporate Accounts
Sysmex America, Inc.

We will identify the diverse needs of different regions and facilities to improve thevalue of diagnostics.

Ghana: Person in Charge of the Entire Region

We aim to carefully respond to country risk and enhance medical standards.

ManagerCountry Sales/Marketing Department
Sysmex West and Central Africa Ltd.

27

Sysmex Report 2022

Wu Wanqing

Luo Chunmei

Shi Changwen

Chen Changhao

Marketing Promotion Department
Sysmex Shanghai Ltd.

Sales Department (Region II)
Sysmex Shanghai Ltd.

Immunochemistry andClinical Chemistry Department
Sysmex Shanghai Ltd.

Hemostasis Department
Sysmex Shanghai Ltd.

As its population ages, China is working to rapidly enhance its healthcare infrastructure, and demand for testing is growing. At thesame time, the country is working to curtail medical expenses through reforms to comprehensive medical fee reimbursements. Thisis likely to result in growing expectations for instrument manufacturers on the quality, quantity, and cost fronts. In this environment,
Tier 2 and 3 hospitals (which Sysmex is focusing on) are playing a role in providing more advanced treatment, training future generations, and raising the level of regional medical care. For testing, we are seeing growing needs for high-precision, multi-parameter
testing, increased efficiency, full automation, and scientific support. While customers indicate that the product solutions Sysmex currently provides are meeting these needs, technological innovation needs to continue. We will continue to communicate closely withcustomers, key opinion leaders and distributors. By sharing their requests with the product development team, we will contribute to
the early detection of diseases, more efficient medical care, and higher added value at laboratories.

Sysmex Report 2022

Activity Report andCorporate Overview

Moustapha Abari Dan-Bouzoua

In Ghana, medical treatment fees under the national health insurance system are low, and taxes
on medical instruments are high. This situation makes it difficult to invest in testing equipment
and increase testing fees. Against a backdrop of underdeveloped medical regulation, low productquality is the norm, and country risks (such as payment terms and currency) are also a factor.
Given these regional characteristics, Sysmex focuses on carefully responding to country risks
and working to improve the standard of healthcare in Ghana. We are placing a particular emphasison the need to provide accurate test results, the provision of test flows that support rapid diagnosis, the acquisition of expertise and technologies, and higher productivity in testing. Specifically,
we provide a leasing and maintenance menu aimed at optimizing cost-effectiveness. We also help
to enhance testing infrastructure through customer training, product workflow analysis, and technical support for testing systems.

Amid growing demand for testing and healthcare cost reforms, we will meet expectations through careful communication.

Corporate Governance

Deputy General ManagerSales (North and East India)
Sysmex India Pvt. Ltd.

China: People in Charge of Tier 2 and 3 Hospitals

Management Resources andBusiness Activities

Vineet Malhotra

India faces major disparities in testing volume and parameters, depending on whether facilities areurban or rural, on whether they are privately run or government-affiliated, and on the size of thefacility. One particular issue that India faces throughout the healthcare system is that of improving
healthcare standards in rural and inland areas. Medical facilities in these regions are looking for ways
to achieve high productivity and rapid testing, while at the same time reducing the cost of testing.
Sysmex has been working for some time to offer products and solutions that are precisely
tailored to individual regions’ needs. We have built a robust position by offering unique parameters,
high quality, excellent service and scientific support. We will continue working to fully leverage theseadvantages to expand our product and service offerings and improve diagnostic value. In addition,
we will support advances in diagnosis and treatment by sharing technical expertise and cutting-edgecase studies at Group meetings and seminars.

Strategies for Value Creation

India: Person in Charge of North and East India

Sysmex has acquired a major share of the US market. However, the ongoing management integration of medical institutions and the formation of groups is driving an increase in cases of bulk
purchasing of medical instruments. We are concerned that these moves could affect our marketshare. That said, Sysmex’s current position in the US market is robust, and we have a strong competitive advantage. Market competition is expected to intensify, as total laboratory automation(TLA) vendors roll out solutions that bundle clinical chemistry, immunochemistry, and hemostasis
offerings along with hematology.
The United States is learning to live with COVID-19, but the acute care wings of large andmedium-sized hospitals have growing needs for further automation and labor savings. Staff placement and personnel planning are essential parts of laboratory operations. Decisions to introduce
hematology products are also made with an eye toward the future of the healthcare system andtake into account the increasing call to minimize manual processes, except in pediatrics and otherareas where physicians’ orders are mandatory.
Sysmex will leverage its extensive customer touchpoints to ascertain laboratory needs
through regular customer meetings and symposiums and incorporate them into product development and value-added proposals.

What Sysmex Aims for

Yosuke Agatsuma

Under the Ministry of Health, Labour and Welfare’s vision, the roles of regional medical care in
Japan are being divided among different facilities, with laboratory needs varying by facility. Inaddition, as medical care grows increasingly sophisticated, the work of laboratory technologists
is also becoming more diverse. In addition, the number of tests related to COVID-19 is increasing,making laboratory operations more complicated and increasing workloads.
With regional hospitals in these circumstances, Sysmex believes it is important for tests tosimultaneously provide clinical value (high and multiple functionality) and to deliver value on theefficiency and cost fronts. With our new products in the hematology field that launched in March
2021, we have sought to reflect this feedback from medical facilities and laboratories by providing
high-value-added products and promoting their adoption by new customers. We have worked toautomate tasks that were previously performed manually, reducing the workload at laboratories
while simultaneously boosting productivity and lowering operating costs. We aim to support
regional medical care by proposing and expanding value in these ways.

We propose value-added solutions to meet needs for automation and labor saving.

Message

We help increase laboratory productivity and support community healthcare.

United States: Person in Charge of Large and Medium-Sized Hospitals

28