Sysmex enhances diagnostic value
with innovative testing,to bring greater trust andconfidence to healthcare.
Sysmex operates in the field of healthcare testing,which involves examining blood, urine, and other samples.
We provide customers with a variety of products and services
in more than 190 countries and regions.
We will undertake new challenges in the field of diagnostics
as the future of healthcare unfolds.

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Contents
Structure of Sysmex Report 2022

01 Message
What Sysmex aims for 1

Management resources and business activities 3

Value provided

Main business activities
Procurement Corporate Message
 Corporate Philosophy for the Sysmex Group An Ideal Unchanged Since Our Founding Sysmex’s History
 A Snapshot of Sysmex
 Sysmex’s Business Model Message from the CEO

21
23
25
27

 Materiality
 Sysmex’s Value Creation: Aiming for Sustainable Growth Providing Value to Patients, Healthy People, Healthcare and Society Worksite Commentary

19 What Sysmex Aims for 1
R&D

Management
resources
for creating
value

01
05
06
07
09
11
13

Outputs
Regulatory registration
Production

Strategies for value creation 2

Distribution

29 Strategies for Value Creation 2
Sales

Service and support

 Long-Term Management Goals
 Long-Term Management Goals:

3537 Mid-Term Management Plan Mid-Term Management Plan:

39

Background to Formulation of Key Actions
 Mid-Term Management Plan:
Progress on Key Actions

Achievement Milestones

HR strategy
Intellectual property strategy

31
33

Environmental initiatives

Corporate governance 4

Independent Practitioner’s Assurance
In addition to environmental and social data, we have obtained independent practitioner’s assurance of compliance with the AA1000
AccountAbility Principles.
>>Sustainability Data Book > Independent Practitioner’s Assurance P70

3

Accounting Standards
In fiscal 2016, we voluntarily adopted the International Financial
Reporting Standards (IFRS). In this report, figures presented up to
fiscal 2014 are in accordance with Japanese GAAP. Figures fromfiscal 2015, are presented in accordance with IFRS.

Period Covered
The target period is fiscal 2021 (April 1, 2021 to March 31, 2022), but
the report also covers some activities conducted after April 2022.

Forward-Looking Statements
Statements in this report pertaining to Sysmex’s future plans, strategies,
business performance and other items are based on currently available
information and involve certain risks and uncertainties. Actual results
may differ materially from those anticipated in these statements.

Sysmex Report 2022

(Message from the Executive in
Charge of Finance)57

 Management Resources and Business Activities
59 R&D Capabilities
61 Production and Distribution System
62 Sales and Service Structure
63 Environmental Considerations
65 Diverse Human Resources
67 Intellectual Property

69
71
75
77
81

 Message from Outside Member of the Managing Board
 Corporate Governance Risk Management
 Members of the Managing Board Executive Officers

68 Corporate Governance 4

System of Disclosure

Organizations Covered
In principle, this report covers the Sysmex Group (including Group
companies in Japan and overseas). In this report, “Sysmex” refers to
the Sysmex Group as a whole. “Sysmex Corporation” refers to theCompany on a stand-alone basis.

 Performance Highlights
 Topics in Fiscal 2021
 Status of Sustainability Targets
 Financial and Capital Strategies

55 Management Resources and Business Activities 3

Editorial Policy
The Sysmex Report, an integrated report that summarizes financial and non-financial information, is intended to help stakeholders understandSysmex’s medium- to long-term value creation. For more detailed information, please visit our website or see our Sustainability Data Book.
In editing this publication, we referred to the IIRC’s International Integrated Reporting Framework, as well as the Guidance forCollaborative Value Creation by the Ministry of Economy, Trade and Industry.
In fiscal 2021, Sysmex changed its accounting policy for configuration or customization costs in cloud computing contracts to recognize
costs as expenses when services are received. Accordingly, we have by retroactively adjusted the figures for the fiscal 2020.

Financial information
Non-financial information
Sysmex Report (an integrated report, published annually)
Investor Relations Site
Sustainability Site
https://www.sysmex.co.jp/en/ir/index.html
https://www.sysmex.co.jp/en/csr/index.html
This site discloses details of financial, stock and shareholder• Sustainability Data Book (PDF, published annually)
information.
https://www.sysmex.co.jp/en/csr/report/index.html• Financial statements
Corporate Governance Report• Financial data, etc.
https://www.sysmex.co.jp/en/corporate/governance.html

43
46
47
51

Sustainability
Data Book

83 Activity Report, Corporate Overview
83  Management’s Discussion and Analysis
89  Consolidated Financial Data (10 Years)
91  Consolidated of Financial Statements
95  Sysmex’s Businesses
98  Primary Products and Services
101  Stakeholder Engagement
103  Terminology

105  Stock Information
106  Corporate Information

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Corporate Philosophy for the Sysmex GroupAn Ideal Unchanged Since Our Founding

In 2007, we formulated the “Sysmex Way,” the corporate philosophy for the Sysmex Group, carrying forward and expanding the

Our founder, Taro Nakatani, defined our corporate objective thus: “By providing the products we create, we will help resolve theperspective of our founding philosophy. Our current corporate philosophy consists of three parts: Mission, which defines ourissues society faces and make our own lives more fulfilling.” This objective forms the basis for our founding philosophy, the “Threesocial raison d’être and states how we hope to contribute to society: Value, which describes the values and management style that

Aspects of Confidence.” These thoughts are carried forward in the “Sysmex Way,” the Sysmex Group’s current corporate philosophy.

we must abide by, and Mind, which expresses the mindset and code of conduct that every employee within the Sysmex Group
Messagemust observe. Our Core Behaviors encompass the customers, business partners and employees expressed in our original company
philosophy, the “Three Aspects of Confidence.” In addition, they declare our objective of instilling confidence in other stakeholders:
our shareholders and society.

What Sysmex Aims for

Shaping the advancement of healthcare.

Strategies for Value Creation

We continue to create unique and innovative values,
while building trust and confidence.

Management Resources andBusiness Activities

With passion and flexibility, we demonstrate
our individual competence and unsurpassed teamwork.

Founding philosophy, the “Three Aspects of Confidence:”• Total customer confidence in all of our products.
• Total confidence in our associates in all our business
transactions.
• Total confidence of our employees in themselves and alltheir work.
Founder: Taro Nakatani

Our founding philosophy, the “Three Aspects of Confidence:” instills confidence among customers, business partners and employees and defines the basis of our management.
Mr. Nakatani noted that “There is no such thing as eternity in this world, and every flow must have its ebb.
Companies are no exception to this rule.” He went on to share his thoughts on corporate management
and confidence: “We will always strive to instill confidence. It is important to keep in mind that without
this effort, the company cannot survive and proceed with its work.”

Corporate Governance
Activity Report andCorporate Overview

To ensure corporate sustainability in a constantly changing society, Mr. Nakatani believed it is essentialthat we ourselves continue to take on challenges. In that spirit, Mr. Nakatani visited the United States in1960 in search of new business ideas. His attention was drawn to the field of medical electronic devices.
When he returned to Japan, Mr. Nakatani began working with young researchers, conducting studies andengaging in development. In 1963, they succeeded in the commercialization of Japan’s first blood cellcounter, the CC-1001 automated hematology analyzer.
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Sysmex’s History

Fiscal 2023 target in the mid-term
management plan:¥420.0 billion

Since the time of its founding, Sysmex has grown by expanding its business portfolio in the domain of in vitro diagnostics anddeveloping its business globally.

Fiscal 2021 net sales

Going forward, we will work to accelerate sustainable growth by quickly ascertaining changes in the business environment and¥363.7 billion

developing our business.

Message

Launched a roboticassisted surgery system(2020)

Established a local subsidiary in Singapore (1998)
Entered an alliance with F. Hoﬀman-La Roche related to hematology products (1998)
Changed company name to Sysmex Corporation (1998)
Began oﬀering
the SNCS network service (1999)

Launched the world’s firsthematology transport system (1990)

What Sysmex Aims for

Listed on the first sections of the Osaka and Tokyo stock exchanges (2000)
Entered the life science field (2000)

Opened a representative oﬃce
in the United States (1977)

Establishment (1968)

Entered theurinalysis
field (1974)

Entered theimmunochemistry
field (1987)

Launched the Sysmex
brand (1978)

Overseas
sales ratio:

Commenced direct sales
and service in the
United States (2003)

Commenced direct
sales and service inthe United Kingdom(1991)

Strategies for Value Creation

Launched first made-in-Japan automatedhematology analyzer (1963)
Opened a representativeoﬃce in Germany (1972)

Formulated the “Sysmex Way,” the corporate
philosophy of the Sysmex Group (2007)

Formed alliance in thehemostasis field withthe current Siemens
Healthineers (1995)
Established a joint
venture company inChina (1995)

Entered the hemostasis
field (1984)

84.7%

Overseas sales
Domestic sales

1963

1968

Social and Healthcare
Environment
Sysmex’s
Value Creation

1970

1975

1980

1985

Sysmex Report 2022

Hematology 90.8%
Non-hematology 9.2%
(Urinalysis, hemostasis,
immunochemistry,others)

Net salesby destination
Japan
Overseas

7

Net salesby business

82.9%
17.1%

Net salesby destination

Increasingly sophisticated healthcare,with more diverse needs
Increasingly sophisticated testing,sustainability

Japan
Overseas

60.2%
39.8%

FY2021

Hematology
59.5%
Urinalysis/fecal occult blood 5.0%
Hemostasis
14.5%
Immunochemistry
7.8%
Clinical chemistry
3.4%
Others9.8%

Japan
Americas
EMEA
China
Asia Pacific

2023

51.8%
12.0%
25.4%
6.4%
4.4%

Net salesby businessNet salesby destination

Hematology
Urinalysis
Hemostasis
Immunochemistry
Clinical chemistry
FCM
Life science
OthersMedical robotics

57.8%
8.2%
17.1%
5.6%
0.8%
0.6%
4.9%
4.6%
0.4%

Japan
Americas
EMEA
China
Asia Pacific

15.3%
23.0%
27.9%
25.7%
8.1%

Sysmex Report 2022

Activity Report andCorporate Overview

Net salesby destination

2021

2015

FY2001

Net salesby business
Hematology 100%
(Including some sales
from other fields)

2010

Globalization and use of IT in healthcare

FY1990Net salesby business

2005

Digitalization of testing andthe elimination of regional disparities

More efficient and expanded testing

FY19802000

Corporate Governance

Changes in Sales by Business and Destination

1995

Sharply rising healthcare costs,
diversifying healthcare needs

Growing demand for healthcare

Promoting the adoption of testing1990

Management Resources andBusiness Activities

(FY)

8

A Snapshot of Sysmex
Note: Figures are as of March 31, 2022, unless otherwise indicated.

Materiality

Three-year total R&D investment

Instrument production bases¥71.0 billion

7 locations globally(Fiscal 2019–2021)

Number of patents

3,680(Total number of patents,
utility model rights and design rights)

Average number of development
projects per year

Service and Support

Companywide

Countries and regions
where business is conducted

Customer Assessment in
the United States

Position in the in vitro
diagnostics market

Reagent production bases

More than 190

No. 1 for 15 consecutive years

9th globally*

14 locations globally

Sales and service bases

Production volume (reagents)

Approximately 16.7
million units
Number of unique items produced (reagents)

1,174 items(Average over the past five years)

62
Alliance partners

Source: IMV ServiceTrak 2020 Hematology

Customer needs addressed

Approximately 14,000(non-consolidated basis)

Roche, Siemens Healthineers,

Queries to the customer service center

EIKEN CHEMICAL, Cellavision,

80,365others(non-consolidated basis)

1. Roche (Switzerland)
2. Abbott (United States)
3. Danaher (United States)
4. Siemens Healthineers (Germany)
5. Thermo Fisher (United States)
6. Becton Dickinson (United States)
7. Holgic (United States)
8. bioMērieux (France)

9. Sysmex (Japan)*Sysmex’s estimates based on information disclosed
for 2021

Strategies for Value Creation

Around 70

Sales

What Sysmex Aims for

Responsible provision of
products and services

Production/Distribution

Message

Resolution of medical
issues through products
and services

R&D

Engagement score

65%(Excluding EMEA)

Approximately 1,000

Approximately 2,000

Approximately 1,700

Female managers ratio• Addressing the individual needs of eachregion and facility

Training time per employee• Increasing the number of people in chargeof Caresphere™ and digital medicine

31.4 hours

17.3%• Diverse specializations andtechnical skills• Greater productivity through theintroduction of ICT• Two acquisitions in the past five years(As of May 2022)• Establishment of an attractive working
environment and a focus on training

Results of decreased electricity
consumption by new products

Percentage reduction in CO2 emissions
in shipping and logistics

Amount spent on product disposal
as a percentage of net sales

Percentage reduction in CO2emissions when using instruments

Percentage reduction in CO2emissions from business activities

Cut 1%

0.6%

22% reduction

44% reduction• Air transport increased, owing to delayed
production of instruments stemmingfrom semiconductor shortages.

• Ongoing efforts to reduce waste throughappropriate inventory management andother means• Increased sales of power-saving products
and global trend toward improvement in
CO2 emission factors• Decrease due to installation of equipment
to reduce CO2 emissions from businessoffices, improved production efficiency
at factories, etc.

Down by approximately

40%(Base year: Fiscal 2016)• Promotion of more local management• Hiring and development of regulatory
affairs and clinical development personnel(Base year: Fiscal 2016)

Corporate Governance

Environmental
consideration

Approximately 900

Management Resources andBusiness Activities

Realization of an attractive
workplace(Base year: Fiscal 2016)(Compared with Sysmex’s older products)

Financial results

Management

Strengthening ofgovernance
Sustainable growth9

Sysmex Report 2022

Percentage of outside members of
the Managing Board

41.7%

Activity Report andCorporate Overview• For new products in the hematology
field (Specimen Transport ProductGroup), we realized an environmentallyfriendly design that consumes lesselectricity than conventional models.

Percentage of executive compensationthat is performance-linked
or non-monetary

Net sales

Free cash flow

ROE

¥363.7 billion(excluding members of the Audit andSupervisory Committee andoutside members of the Managing Board)¥23.6 billion

13.5%

Operating profit

Percentage of recurring sales

Market capitalization

76.1%¥1.9 trillion

73%¥67.4 billion(Sales of reagents, services and support, others)

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Sysmex’s Business Model
Business Expansion That Leverages Sysmex’s Strengths

Hematology-focused• Customer base

Expanded solutions• Development of the service andsupport business• Network services (IT)• Scientific support• Utilization of distributors• Switch to direct sales and service• Government collaboration• Creation of a global regulatory
structure• Cultivation of the primary care
hospital market• Initiatives in preventive andpre-symptomatic domains• Quality• Market presence
New customers
Expansion of sales areas

Profit Modeln A Stable Profit Model

Status by Field
Immunochemistry

Sysmex has No. 1 share of sales

Sysmex has No. 1 share of sales

Sysmex has No. 1 share of sales

Market growth rate
(2021-2023)

Market growth rate
(2021-2023)

Market growth rate
(2021-2023)

Market growth rate
(2021-2023)

4%

4%

4%

4%

Market scale

Market scale

Market scale

Market scale$4,000 million$1,200 million$3,000 million$23,000 million

Sysmex’s sales

Sysmex’s sales

Sysmex’s sales

Sysmex’s sales¥210.3 billion¥29.9 billion¥62.0 billion¥20.4 billion(FY2021)(FY2021)

Service and Support

Instruments

Reagents

23.9%

59.4%

Reagents(FY2021)

Management Resources andBusiness Activities

Hemostasis

Stable source of profits

Urinalysis

n Composition of Sales (Fiscal 2021)

Ongoing sales of reagents,
service and support

Sales from one order

Hematology(FY2021)

Strategies for Value Creation

Expansion into regional healthcare

What Sysmex Aims for• Technologies

Expanded fields of testing• New fields(Life science, FCM)

Message

Existing customers• Urinalysis and hemostasis• Development of theimmunochemistry field

Our earnings structure is characterized by stable andongoing revenue sources and high profitability. In our mainstay fields of hematology and hemostasis, even after customers purchase instruments, we generate ongoing revenue by
selling specialized reagents and providing service and support.
Notably, Sysmex is increasing its proportion of sales fromreagents and service and support by expanding its share ofbusiness with large-scale facilities (where reagent use is high)and by growing its portfolio of clinically significant reagents.
By increasing our proportion of sales from reagents, which are
more profitable than instrument sales, we expect to generate
stable earnings and maintain or increase profitability. Sysmex’s
products and service and support earn high customer satisfaction, so in addition to new customers, we enjoy a high customer retention rate.

In the IVD market, demand tends to be relatively unaffectedby global conditions and economic trends, and the market
continues to grow along with advances in medicine. Sysmex
maintains a strong position in this market, particularly in thefield of hematology, where we have a market share of morethan 50% (No. 1). In the urinalysis and hemostasis fields, weare expanding our sales regions and product portfolios by collaborating with alliance partners. As a result, we have a No. 1
share of the global market in these fields, as well.
Sysmex has continued to grow and established its market
position since the time of its establishment, mainly by leveraging its expertise in the field of hematology, expanding its
fields of testing and solutions, growing its sales regions, anddeveloping its business in regional healthcare. (See the figure
at left.)

Net sales¥363.7 billion

Instruments(Sedimentation, chemistry)

Year 1 Year 2 Year 3 Year 4 Year 5

OthersServices and support

3.9%

12.8%

Corporate GovernanceNotes: Sysmex has compiled data on market scale and growth rates based on publicly disclosed information as of 2021.
Exchange rates are used for the year in which research was conducted, so simple comparisons with market scales presented in previous years are not possible.
Our share of sales in the hemostasis field includes sales through an alliance with Siemens Healthineers.

...

n Sales of Reagents and Service and Support

Main Alliance Partners

Urinalysis

EIKEN CHEMICAL, Siemens Healthineers

Hemostasis

Siemens Healthineers

Instruments

As a percentage of net sales, sales of reagents and service

and support have risen 7.0 percentage points over the past 20 years.

OthersService andsupportInstruments

Major Competitors

OthersHematology

Danaher, Siemens Healthineers, Abbott, Mindray

Hemostasis

Welfen (former Instrumentation Laboratory), Stago

Urinalysis

Danaher

Immunochemistry

Roche, Abbott, Siemens Healthineers

Clinical FCM

Becton Dickinson, Danaher

76.1%

Service and support
Reagents

Reagents

Activity Report andCorporate Overview

Roche, Cellavision

Stable source of profits

Hematology

69.1%
2002 2003 2004 2005 2006 2007 2008 2009 2010
(FY)

Japanese GAAP

20112012 2013 2014 20152016 20172018 2019 2020 2021
IFRS

Note: In the past, charges to customers based on the number of tests were included in “Others.” From fiscal 2015, amounts are divided and presented as “Instruments,”“Reagents” and “Service and Support.”“Others” includes consumables.

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Message from the CEO

Message

By enhancing diagnostic value, we are contributing
toward the extension of healthy lifespans, theimprovement in accessibility to healthcare, theadvancement of medical care and the optimizationof medical costs, as well as promoting the overall advancement of healthcare.

What Sysmex Aims for

Hisashi Ietsugu
Chairman and CEO

Strategies for Value Creation

Our mission is “Shaping the advancement of healthcare”. In line with this mission, we
will enhance the value we provide to society, healthcare and patients.
I would like to extend my sincere sympathies to the people who are suffering from COVID-19. I also offer myheartfelt thanks to all of you who are working to help prevent this pandemic from spreading.
The “Sysmex Way,” the corporate philosophy of the Sysmex Group, defines our mission of “Shaping theadvancement of healthcare.”Management Resources andBusiness Activities

Sysmex operates in the healthcare domain, which continues to evolve and develop, constantly changing
its form as new needs are created by advances in science and society. Looking around the world, although
medical issues differ by country and region, emerging markets are following in the footsteps of developed
countries, where healthcare levels continue to grow more sophisticated.
Within the healthcare domain, the value of diagnostics is also increasing. The in vitro diagnostics (IVD)
market, which is worth an estimated $80 billion, continues to grow steadily. Accurate diagnosis is essential fortreatment, and the evolution of testing to support diagnosis is directly related to the development of medicalcare. In addition, the concept of personalized medicine, in which the selection of treatment methods is optimized for individual patients, has become a worldwide trend. Recently, calls have been mounting for prog-

Corporate Governanceress in treatments that are early-stage and comprehensive, and that reduce patient burden. To realize thesegoals, R&D efforts are underway, including the automation and systematization of diagnostic instruments,
the expansion of biomarkers, and the establishment of liquid biopsy. With primary care in the preventive andpre-symptomatic domains growing in importance, and telemedicine expected to become more widespread,increasingly diverse testing will play a major role in value creation.
Against this backdrop, the value Sysmex provides to society includes the extension of healthy lifespans,
improvement in accessibility to healthcare, and advancement of medical care. We respond to the universal

Activity Report andCorporate Overview

human desire to live long and healthy lives. At the same time, the optimization of medical costs is a themeof topmost importance. Providing testing that is optimal for each patient in terms of timing, location, andmethod can help ensure appropriate drug administration and the selection of treatment, reduce the physicaland financial burden on patients, and lower medical costs. Sysmex, which aspires toward the advancement of
diagnostics and healthcare, it can make a major contribution to these goals in countries around the world.
>>Sysmex’s Value Creation P23>>Providing Value to Patients, Healthy People, Healthcare, and Society P25

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14

Mid-term management plan to realize our positioning under the long-term
management goals (2025)
Message

Based on these perspectives for value creation and growth, we established “A Unique & Advanced Healthcare
Testing Company” as our long-term vision under the long-term management goals (2025) we formulated infiscal 2018, and we set five positioning targets. Our mid-term management plan that commenced in fiscal
2021 is a promotion plan that incorporates specific measures for reaching these targets.
Expanding and advancing our business foundation are at the base of this strategy. Sysmex has a market

What Sysmex Aims forshare of more than 50% in the hematology field. We have also established a No. 1 global market position in
the urinalysis and hemostasis fields, and we are steadily building our business foundation in the immunochemistry and life science fields. We have developed a sales and service network that spans more than 190
countries and regions, and a well-balanced regional portfolio, with the Americas, EMEA, China, and Japanand the Asia Pacific region each accounting for around one quarter of our business. In addition, we have cell,
protein, and gene technology platforms and have built up manufacturing and quality control systems.
Leveraging these foundations, our mid-term management plan calls for us to continue reinforcing theStrategies for Value Creation

hematology field. At the same time, the plan calls for growth in the key fields of hemostasis, immunochemistry, and life science. Meanwhile, we will advance the development of new businesses, such as medical robotics, and promote DX, both for customers and for ourselves internally. We will also focus on expanding ourhuman resources portfolio and improving management quality, which will serve as the soil to nurture thesegrowth strategies.
>>Long-Term Management Goals P31>>Mid-Term Management Plan P35

Operating within the healthcare business domain, which is a growing market, Sysmex has based its management on double-digit sales growth for nearly 30 years.
Our main business domain, the IVD market, is growing in the mid-single digits. Basically, our goal is forsales growth to outpace the market’s expansion, so we are concentrating on augmenting our portfolio andexpanding our sales area. In the diagnostics business, our earnings structure is focused on generating ongoingso sales growth is important.
Above all, I would like to emphasize the internal energy generated by our goal of double-digit growth.
As we cannot achieve double-digit growth by simply following existing practices, Sysmex is committed to“generating wisdom.” Given the changes that are occurring among customers and markets, we cannot reachthis objective with short-term measures. Employees draw up new strategies and measures through dialogue,learning, and collaboration with customers and other stakeholders. Employees are motivated by the fact that
their own efforts create value and contribute to customers and patients further down the road. We believe
years in the future.
On the other hand, achieving growth also necessitates aggressive investment, which requires us togenerate profits. In order to expand our portfolio globally and continue to create new value, our profitability
target should be an operating margin of around 20%. Over the past few years, our operating margin has deteriorated as a result of new product development, regulatory application fees, proactive investment in digitaltransformation (DX), and deterioration in the cost of sales ratio. However, we believe that it is essential to
improve our gross profit ratio and continuously raise profitability by boosting production efficiency (partly
through DX) and through reagents accounting for a larger percentage of sales. We now have the environment
in place to achieve our goals.
>>Financial and Capital Strategies (Message from the Executive in Charge of Finance) P51

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Sysmex Report 2022

We made steady progress in fiscal 2021, which was the first year of our mid-term management plan. Net sales
and operating profits both reached record levels, rising 19.2% and 34.8% year on year, respectively, and theoperating margin recovered to 18.5%.
We faced difficult changes in the operating environment, such as the impact of COVID-19, raw materials
shortages, sharply higher prices, disruption on the logistics front, rising geopolitical risks, and lockdowns in
China, but we responded flexibly in each business and region. We believe we were successful in taking measures based on information we obtained from our customers around the world regarding their changing business environments and requirements.
In November 2021, a fire broke out at an outsourced storage facility in Japan, resulting in the loss of reagents and other inventory. However, due to an initial response based on our business continuity plan (BCP)
and an expeditious revision to our supply plans, we were able to resume the provision of products several
days later, and we quickly optimized inventory levels. Harnessing our Groupwide capabilities and realizing a

Activity Report andCorporate Overview

it is important to build this climate of constant thinking and growth to nurture the next generation 10 to 20

By augmenting our portfolio and expanding our sales regions,
we achieved record sales and profits in fiscal 2021.

Corporate Governancestable revenue by providing reagents and service and support to customers after they purchase instruments,

Management Resources andBusiness Activities

To achieve sustainable growth,
we are aiming for double-digit sales growth and a 20% operating margin.

stable supply to our customers provides us with a certain degree of resistance to environmental changes
and risks.
In our diagnostics business, we worked steadily to take advantage of a recovery in testing demand, which
had fallen off in fiscal 2020 due to COVID-19. In North America, we leveraged our alliances to grow in theurinalysis field. Sales increased in direct sales regions, such as Spain and Portugal, and a rise in testing related
to COVID-19 also helped drive growth. By destination, sales grew by double digits year on year in each region
except China. Meanwhile, in China we steadily undertook growth-oriented initiatives, such as instrument
manufacture utilizing the knockdown production method and expansion of our reagent portfolio. Sysmex
continues to focus on medium- to long-term growth in the Chinese market. This remains an important region
for us, and we will accelerate our business development there going forward. In the medical robotics business,
we began the full-fledged deployment of robotic-assisted surgery systems for the use in urology. We haveSysmex Report 2022

16

installed 18 units as of the end of fiscal 2021, and in October 2021 Medicaroid Corporation filed an application
to expand regulatory approval to gynecology and gastroenterology.
With an eye to growth initiatives in fiscal 2022 and beyond, we will strive to expand our existing portfolio
expectations for Astrego Diagnostics AB (presently Sysmex Astrego AB), which became a wholly owned subsidiary in May 2022. With urinary tract infections, bacterial identification and other diagnoses can take time,making it difficult to prescribe appropriate antimicrobials at the first consultation. This can lead to antimicrobial resistance, which is a major medical issue. Astrego’s proprietary microfluidic technology enables rapid
antimicrobial susceptibility testing, and we aim to help resolve the antimicrobial resistance problem by comping up our initiatives targeting Alzheimer’s disease. Conventional testing requires cerebrospinal fluid, but weare working to reduce the burden on patients through liquid biopsy, which enables blood-based testing. We
will accelerate development with a view to market introduction in the United States and Europe, as well as inJapan. In the medical robotics business as well, we are pursuing business development activities in the UnitedStates, Europe, and Asia Pacific.

positions human resources as the source of value creation. Accordingly, we are focused on revamping our HR
system, attracting a diverse workforce, and cultivating the next generation of managers. Looking beyond strategy and system design, we also emphasize the accumulation of various types of experience and opportunities
and an environment that allows employees to build diverse contacts, including with customers.
Underpinning these efforts is the “Sysmex Way,” the corporate philosophy of the Sysmex Group. Our
ideal is for employees to think and draw up strategy in terms of the Sysmex Way, and to align our corporate
culture with this philosophy. Sysmex’s management is unwavering in its corporate stance toward this philosophy; we share the Sysmex Way when recruiting human resources and conduct awareness activities at eachGroup location. In corporate culture surveys of employees, the rate of penetration for the Sysmex Way hasremained at around 70% for the past few years. To improve this further, we will continue to promote dialogue
with employees and increase engagement.
We strive toward the realization of a sustainable society and engage in initiatives to enhance corporate

Strategies for Value Creation>>Mid-Term Management Plan: Progress on the Key Actions P39

Corporate culture and human resources are of particular importance for enhancing corporate value. Sysmex

What Sysmex Aims for

mercializing the technology and introducing it to the market as soon as possible. Furthermore, we are step-

Messageand sales areas, and we will focus on market development in India and other emerging markets. We have high

Building a corporate culture and promoting strategies based on the Sysmex Way toenhance corporate value

value, based on our mission as expressed in the Sysmex Way, of “Shaping the advancement of healthcare.” We

Promoting sustainability management that aligns the vector of management strategy
with the expectations and demands of society

would like to ask our stakeholders for their continued support and understanding of our endeavors.
>>Diverse Human Resources P65

One key action under our mid-term management plan is to “formulate a vision and roll out measures to reinforce and implement sustainability management.” Sysmex regularly reviews its materiality based on changes

Management Resources andBusiness Activities

in the external environment, societal expectations and demands, and the progress of its strategies. In fiscal
2021, we revisited our KPIs alongside our new mid-term management plan, and set the reviewed KPIs as our
new sustainability targets.
Society’s expectations and demands are growing by the day with respect to the materiality items Sysmex
has identified, such as the environment, diversity and inclusion (D&I), supply chain management, humanrights, and governance. In light of these changes, Sysmex believes that sustainability management is of theutmost importance in order to build a sustainable structure while promoting efforts to address each issue
from a long-term perspective and aligning the vector of our management strategy with these social trends.

Corporate GovernanceIn product development, it has become essential to create products that increase testing value while also
being are environmentally friendly. For example, new products in the hematology field that we launched in
2021 shorten the time to diagnosis, improve laboratory work efficiency, and lower environmental impact byreducing power consumption by 40%* compared to conventional products.
With D&I, it is important to have employees with diverse values and backgrounds who can share different
ideas, and for each of them to demonstrate their abilities. For the Group as a whole, we will accelerate D&I
initiatives. We will also promote human resource development and human resource strategies that leverage

Activity Report andCorporate Overview

diversity from a D&I perspective. Gender is also an issue, especially in Japan, where the economic world has
long been male dominated. We are working to create an environment and culture in which female employees
can easily demonstrate their abilities, and are striving to increase the ratio of women among our employees
and managers.
To continue these sustainability initiatives and integrate them with our growth strategy, we are working
toward the May 2023 announcement of a new long-term management strategy. Following this announcement, we hope to receive candid feedback from our stakeholders and promote active dialogues.
*Sample transportation system modules>>Materiality P21>>Status of Sustainability Targets P47

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Sysmex Report 2022

Sysmex Report 202218