Management Plans to Date

2018

2019

2020

2021

2022 (Fiscal year)

In response to the newly formulated Long-Term Corporate Strategy,
we have created a new Group mid-term management plan for thethree years from fiscal 2023
(Announced in May 2023)

Theme• Returning to a growth trajectory

Themes• Enhancing our competitive
advantage and expanding ourbusiness portfolio• Reforming the Group’s humanresource management
Results• Launched new products(hematology: high-end, low-end,
and tests related to COVID-19)• Sold robotic assisted surgery system• Introduced job-based HR
management

Themes• Sustaining the expansion of ourcorporate scale and developing
new businesses• Improving sustainability management
and further promoting DX
Results• Launched new products(immunochemistry: expanded
reagent parameters such as fortesting for Alzheimer’s disease, etc.)• Reinforced our business in emerging
markets, such as Brazil and Saudi Arabia• Declared our intention to achievecarbon neutrality• Transitioned to global core systems
Issues• Increased competitiveness andmarket expansion in the
diagnostics business• Acceleration of business growth in
new domains• Promotion of sustainability
management and human capitalmanagement

Results• Launched new products(hemostasis, life science, genepanel testing, etc.)• Expanded our direct sales area
(Egypt, India)• Established a bio-reagent center

Issues• Optimization of product life cycles• Developing of professional humanresources from a medium- tolong-term perspective• Reforming our business processes
through DX

Issues• Business structure reform(increase sales ratios of
non-hematology fields)• Further growth in emerging
markets• Identification and practice ofmateriality

 Key Financial Results
 Net sales
 Operating profit
Operating margin

363.7

281.9
252.6
24.0

60.7

2015

33 Sysmex Report 2023

293.5

301.9

410.5 (Billions of yen)

305.0

249.8
20.7

51.7
2016

21.0

59.0

2017

20.9

61.2

2018

18.3

16.4

55.2

50.0

2019

2020

18.5

67.4

2021

17.9 (%)
73.6

2022 (Fiscal year)

Sysmex Report 2023 34

Activity Report andCorporate Overview

Mid-Term Management Plan
(2021–2023)

Corporate Governance

Mid-Term Management Plan
(2019–2021)

Mid-Term Management Planand Initiatives

Mid-Term Management Plan
(2017–2019)

Sysmex’s Value Creation

2017

About Sysmex

Mid-Term Management
Plan and Initiatives

Sysmex has continued to expand under its previous long-term corporate strategy. In fiscal 2016, revenue increased in all
regions, but the impact of yen appreciation meant that we were unable to fully achieve the levels of revenue increases we hadsustained up to that point. Accordingly, the mid-term management plan that commenced in fiscal 2017 strongly emphasized
the theme of returning to a growth trajectory. After that point, we worked to launch new products aimed at ensuring futurecompetitiveness, strengthened our foundation in emerging markets, and launched a new business centered on
robotic-assisted surgery systems. In preparation for a new stage, Sysmex has also recognized the importance of SDGs andother sustainability targets, and has focused on promoting sustainability management and DX. We have adopted the practiceof a rolling three-year mid-term management plan, which we review every two years. We do this to ensure that the plan isprecise and achieves its goals in light of changes in the external environment and our own circumstances.

Message from the President

About Sysmex

Under our long-term vision, “Together for a better healthcare
journey,” we will achieve further growth by evolving our businessmodel and expanding our business domains.
Formulating Long-Term Corporate Strategy 2033 (VA33) Based on Our Outlook of

Sysmex’s Value Creation

the Operating Environment a Decade from Now
I was appointed to the post of president in a milestone year, just as we are announcing a new LongTerm Corporate Strategy.
Sysmex has established a solid position by contributing to the global resolution of medical issues
through its diagnostics business. Contributing to healthcare worldwide is not just Sysmex’s purpose—
it is also our social responsibility. To uphold this purpose, we need to achieve sustainable growth. I

Mid-Term Management Planand Initiatives

Kaoru Asano
President

believe it is my mission to dedicate myself fully to steering our creation of value and continuing toinstill confidence among stakeholders.
Fiscal 2023 marks the launch of our Long-Term Corporate Strategy 2033 (VA33), which charts
our path to value creation over the next decade. VA33 is based on our mission of “Shaping the advancement of healthcare” as described in the Sysmex Way, the corporate philosophy for the Sysmex
Group. To develop this strategy, we took a point 10 years hence as our starting point. We have focused specifically on the further advancement of personalized medicine, driven by technological innovations such as genomic analysis, in order to extend healthy lifespans and optimize medical costs.

Corporate Governance

Drug selection is becoming more sophisticated, and there is a growing demand for comprehensive
follow-up and treatment from the very earliest stages. It is important to pay attention to each individual's needs and to take a holistic view of the entire healthcare process. In this era, we believe that
expanding the scope and targets of value provision is essential in order to contribute to the health ofpeople worldwide.
Sysmex advocates the concept of a “healthcare journey.” Going beyond the patient journey,
which focuses on the flow of diagnosis and treatment, the healthcare journey encompasses the various healthcare events throughout a person’s life. Sysmex aims to improve each individual's healthcare

Activity Report andCorporate Overview

journey, but we cannot achieve this goal alone; it requires collaboration with various companies andorganizations involved in healthcare, including medical institutions. This idea formed the impetus for
our long-term vision, “Together for a better healthcare journey.”

Organizing the Evolutionary Path of Our Value Creation
Embracing B-to-B-to-C in the Scope of Our Business Model
To enhance value creation at each phase of the healthcare journey, Sysmex must undergo its own
transformation and evolution. Whereas our traditional testing business was a B-to-B model, now weneed to embrace the scope of B-to-B-to-C business, which also focuses on the end-consumers at
the center of the healthcare journey.
For business domains, we have adopted the idea of innovation streams and arranged our evolutionary path along two axes: organizational ability and markets. >>Long-Term Corporate Strategy P23
First, we will focus on strengthening our existing diagnostics business. We will direct around 70% of ourinvestment into this business, which is also our primary source of capital (Domain A). We enjoy a highshare of the market in the diagnostics business, but ample potential for growth remains. In the hematology and urinalysis fields, we see substantial room for growth in India and other emerging markets, where
we aim to expand our business. In the hemostasis field, where needs are becoming more diverse, wewill offer advanced solutions and conduct global rollouts. Expanding reagents and sales regions is a priority issue for us in the immunochemistry field, where the market is large and expected to grow.
35 Sysmex Report 2023

Sysmex Report 2023 36

Through advances in our organizational ability and the market, we will foster the life science field,

as India, to further support robust growth. Furthermore, Sysmex will continue to leverage genome
analysis and liquid biopsy technologies and accelerate the launch of personalized prevention andsonalized prevention and prognosis monitoring (Domains B and C). In new businesses, we com-

prognosis monitoring services. In the medical robotics business, we will focus on obtaining regulatory

menced full-scale development of medical robotics in fiscal 2021. In addition, we will develop andapprovals and entering markets overseas.

nurture business centering on treatment domains such as regenerative and cellular medicine, basedon open innovation and collaboration with other companies (Domain D).

About Sysmex

which focuses on genomic testing technology, and broaden its diagnostic value in the areas of per-

To expand these business domains, we need to respond flexibly to change and be flexible in making course corrections. We will strive to enhance our risk management and investment management
capabilities. In M&A, investments, and partnerships, we will increase the precision of our goal setting

Integrating Our Growth and Sustainability Strategies
On the Financial Front, Targeting Net Sales of More than ¥1 Trillion and Operating

VA33 is characterized by a design approach that started with the formulation of a vision, and thenused backcasting to create our materiality, core strategy, and KPIs. This allowed for a consistent story
and a simple structure, making it easier to align with our targets and key actions in our mid-term management plans. We expect VA33 to enhance understanding among external stakeholders, as well as
employees, and to foster more active dialogues.
ing our growth strategy and sustainability strategy. For example, in addressing environmental concerns, we will focus not just on climate change and water resource management, which are important

16%, and free cash flow of ¥46.0 billion. In terms of profitability, we will leverage the investments wehave made in digitalization to improve productivity by revamping business processes and utilizing
data. A new system will become operational in fiscal 2023, enhancing productivity. We will further
boost profitability through global growth in each field in our diagnostics business by expanding testing
parameters, particularly in the immunochemistry field.
Furthermore, we have set 14 sustainability targets to align with the materiality items we haverecently re-established. We will follow a PDCA cycle while verifying progress toward these targets.

Mid-Term Management Planand Initiatives

In core strategies, we have incorporated the concepts of eco-social and human capital, integrat-

For fiscal 2025, the final year of our mid-term management plan, we are targeting net sales of¥560.0 billion, up 36% from the fiscal 2022 level; an operating profit of ¥112.0 billion, up 52%, ROE of

Sysmex’s Value Creation

Profit Above 20%

and revenue-recovery plans, and monitor these plans rigorously.

Working to Become a Company Whose Employees Realize the Significance of Itssocial demands, but also strive to realize a “circular resource society,” which the entire healthcare

Business and the Value It Provides, and One That Can Grow Autonomously, Thereby

industry should prioritize. This approach means transforming Sysmex’s entire value chain. In terms of

Enhancing Corporate Value

human capital, recognizing that people are our greatest asset, we will build an optimal human reI believe the growth of a company and the growth of its people are correlated and synonymous. To

efforts. We will prioritize the promotion of female employees and emphasize the importance of per-produce a large number of self-driven employees, we prioritize investment in training and talent de-sonnel with diverse values and backgrounds, allowing each individual to demonstrate their abilities in avelopment. At the same time, we actively collaborate with external partners to create opportunities

collaborative environment.

and environments that foster interaction among people of different values and capabilities.

On this basis, VA33 establishes quantitative targets on both financial and non-financial fronts. Our

Corporate Governancesources portfolio to drive value creation, by accelerating our diversity, equity, and inclusion (DE&I)

A crucial factor in achieving such growth is the engagement between a company and its employees,
as well as their sense of purpose and fulfillment in their work. Speaking from my own experience in re-ability target is an operating margin of more than 20%. Thus we aim to sustain the Company’s growthsearch and development and my involvement in new fields and businesses, one moment that stands out

momentum by continuing to adhere to Sysmex’s record of achieving double-digit growth and a 20%

is the first surgery conducted using the robot-assisted surgery system in 2020. We were observing fromoperating margin. On the non-financial front, to achieve zero product losses we are targeting 0.1% ora monitoring room next to the operating room. As we watched the surgery unfold on the screen, I wasless as our percentage of waste that is unused in products. We will switch to recycled and environ-moved to tears when the surgery ended successfully and the doctors shook hands. That sight will bementally conscious materials, aiming to achieve a 100% rate of use in containers and packaging mate-etched in my memory forever. Going beyond surgical procedures, Sysmex’s work is directly related to therials. As well as capital efficiency indicators, we will continue to monitor indicators related to humanhealth and lives of people, so we have many opportunities to feel a sense of fulfillment. I hope that each

capital and corporate management, such as employee engagement and customer satisfaction. We

and every employee will contribute to us becoming a company that focuses on providing value to societyplan to organize the framework for these indicators during fiscal 2023.

and consumers. Such a company will naturally evolve and improve its corporate value and performance.

Activity Report andCorporate Overview

growth-oriented financial target for fiscal 2033 is net sales of more than ¥1 trillion yen, and our profit-

In its quest to create further value, Sysmex will continue to proudly embrace new challenges.

New Mid-Term Management Plan Covering a Critical Period of Change
Steadily Implementing Six Key Actions
Our first three-year action plan on the path to realizing VA22 is the mid-term management plan forfiscal 2023 to fiscal 2025. This marks an important phase in Sysmex’s evolution—a period we will lookback on in 10 years as our “point of transition to a new stage.”
Under the mid-term management plan, we have established four key actions that align with ourdirections of evolution (Domains A to D), as I explained earlier, as well as key actions for eco-social,human capital, and corporate management.
During the period of this mid-term management plan, our main source of earnings will continue tobe our diagnostics business. We expect to achieve strong sales growth through initiatives such as theglobal rollout of new products in the hematology field, expansion of our reagent portfolio in the immunochemistry field, and the extension of business leveraging our global OEM agreement with Siemensin the hemostasis field. Additionally, we plan to strengthen our sales system in emerging markets, such

37 Sysmex Report 2023

Sysmex Report 2023 38

Overview of the Mid-Term Management Plan
Background to Formulation of the Mid-Term Management Plan Achieving a better healthcare journey Practicing sustainability management(coexistence with the environment and society) Increasingly sophisticated medicine(expansion of personalized medicine
through genetic testing, etc.)
 Decentralization of medical functions
 Accelerating digitalization
 Shift toward a recycling-oriented
society Expansion of product portfolio toenhance competitiveness Promotion of strategies focused on
emerging markets
 Early commercialization of new
business domains
 Development of a more viable
management structure Further promotion of environmental
preservation

Mid-Term Management Plan (Fiscal 2023–2025)

Positioning of Materiality, Core Strategy, and Group Key Actions
Core Strategy of the Long-Term
Corporate Strategy >>P27

1 Enhance competitiveness and expand markets through innovation in diagnostics business domain
P43

Creating new value for a healthy society
Responsible provision of products,
services and solutions

Group Key Actions (GKA) under the Mid-Term Management Plan

Businesses and Technologies

2 Accelerate commercialization centered on genetic testing in the domain of personalized medicine
P44
3 Create a new business model in the domains of prevention and self-medication

Realization of an attractive workplace

Reduction in environmental burden

4 Accelerate business growth in the therapeutic domain, centered on the medical robotics business
P48
Eco-social
Human CapitalStrengthening of GovernanceCorporate Management

39 Sysmex Report 2023

P44

5 Realize a circular resource value chain and transform with a view to solving social issues
6 Enhance corporate value by strengthening human capital and management base

P51

P53

Sysmex Report 2023 40

Activity Report andCorporate Overview

Materiality >>P25

Corporate Governance

We are positioning this plan as an important starting point for the realization of ourlong-term vision. We will implement a transformation scenario to achieve growththrough innovation and strengthening our corporate foundation.

Mid-Term Management Planand Initiatives

 Manifestation of geopolitical risks

Issues under the Previous Mid-Term
Management Plan

Sysmex’s Value Creation

Recognition of the Environment

In light of the technological innovations that are
getting underway in the medical field, GKA 3 calls for
Sysmex to contribute in new areas, taking into account the decentralization of medical functions andthe increasing awareness of personal disease-prevention measures.
Through synergies from initiatives under GKA 2
and GKA 3, as well as by leveraging Sysmex’s strengthin IVD, we aim to contribute toward the resolution of
medical issues, such as the optimization of medical
expenses, non-invasive and minimally invasive testing,and shorter testing times. We also strive to create new
businesses to realize our long-term vision.
GKA 4 outlines initiatives through which Sysmex willtake on challenges in new medical domains. In 2020, welaunched the first made-in-Japan robotic assisted surgery system. During the period of our current mid-term
management plan, we will work to enter markets in the
Asia Pacific region, as well as Europe and the Americas.
We have established two GKAs describing humancapital, corporate management, and an all-encompassing eco-social perspective.
Through GKA 5, we aim to create a circular resource value chain and resolve social issues by implementing centralized management of that chain utilizing
IT. We will also strive to achieve zero product losses.
Under GKA 6, we aim to become a sustainable
company by optimizing our talent portfolio and redoubling our efforts in diversity, equity, and inclusion (DE&I)
through flexible work practices. By respecting diversity
and leveraging talent with different backgrounds, we will
promote innovation.

About Sysmex

Long-Term Corporate Strategy 2033 (VA33)

This mid-term management plan covers the first
three years toward the realization of our Long-Term
Corporate Strategy 2033 (VA33). We are positioning
this period as an important turning point toward a newstage of Sysmex’s evolution. In formulating the plan, we
examined changes in the social environment and issues
that existed under the previous mid-term management
plan, in order to realize a better healthcare journey andpractice sustainability management as stated in our
long-term vision. On this basis, we have established sixGroup Key Actions (GKA) based on our core strategy.
The GKA defines four actions from the perspective of
business and technology, with GKA 1 forming the pillar for
profitability and growth. In our existing diagnostics business, the market is growing at around 4% annually, suggesting significant room for further growth. By expanding
our reagent portfolio, particularly in the mainstay hematology field, as well as in immunochemistry, and enlarging our direct sales and service area in the hemostasis
field, we aim to grow faster than the market. Focusing
on emerging markets such as India will further support
growth and contribute to improving access to healthcare.
GKA 2 calls for us to grow and develop our existing
businesses, while also seeking to expand into new areas.
Notably, Sysmex has been involved in the life sciencefield since fiscal 2000. Recently, the field has seen significant advances in personalized medicine, such as genetic testing being covered by health insurance. Sysmex
will seize the opportunities presented by such changes
in the operating environment to establish businesses
that will drive the next generation of healthcare. These
include the expansion and utilization of gene panel testing, liquid biopsy technology, and other advances.

Mid-Term Management Plan Targets
Main Financial and Non-Financial Targets

Capital Policies (Three-Year Total)
Fiscal 2025 (Target)¥560.0 billion¥73.6 billion¥112.0 billion

Operating margin

17.9%

20.0%

ROE

12.4%

16.0%

Operating profit¥1 trillion or more

20% or more

(Fiscal 2023–2025)

Cash flow generation

Investment in facilities andbusinesses (Investing cash flow)

Product losses (percentage of unused product waste*1)

—

0.18%

0.1% or less

Switch to environmentally conscious materials(rate of use in containers and packaging materials)

—

60%

100%

¥184.4 billion¥280.0 billion or more

¥115.9 billion¥170.0 billion¥46.8 billion

Shareholder returns¥46.0 billion¥125.0 billion

12.4%

(ROE)

• Development of next-generation
instruments and reagents• Development of technologies for
new domains

16.0%

Mid-Term Management Planand Initiatives¥560 billion yen (CAGR* +10.9%)
2• Developments/facilities inemerging markets (such as India)• Promotion of digitalization• Expeditious M&A• Payout ratio of 30% or more
• Steady dividend increases backed byrising performance¥80.3 billion

R&D expenses
Capital efficiency**1 Cost of unused Sysmex products discarded as waste/net sales

 Net sales
 Operating profit
Operating margin

Three years of the new mid-term management plan

(Fiscal 2020–2022)(Operating cash flow)¥17.0 billion

Cash flow

Past three years

Sysmex’s Value Creation¥410.5 billion

Net sales

Fiscal 2033 (Target)* Final fiscal year

460.0
410.5

363.7
18.5

Main Sustainability Targets

20.0(%)

18.0

17.9

2021

2022

2025 (Fiscal year)(Target)2023(Forecast)• Resolution of medical issues through innovation• Improvement in accessibility to healthcare Providing responsible • Pursuit of quality and trust
products, services• Strengthening supply
and solutions
chain management

Number of hematology tests
Number of cases with surgical robots
Sales in emerging markets and developing
countries
Number of recalls Creating new value
for a healthy society

83.0

73.6

67.4

Major sustainability targets• Increased engagement(Billions of yen)

Fiscal 2022 Fiscal 2025
(Actual)(Target)CAGR*2
(%)

59.8

90.0

14.6

Americas

105.9

140.0

9.7

8.1

EMEA

111.3

140.0

7.9

93.0

11.6

China

96.9

130.0

10.3

23.5

40.0

19.3

Asia Pacific

36.4

60.0

18.0

Clinical chemistry

3.4

5.0

13.4

Life science

19.9

31.0

15.9

Actual exchange rates in fiscal 2022: USD1 = JPY135.5, EUR1 = JPY141.0, CNY1 = JPY19.8
Forecast exchange rates for fiscal 2023 and the new mid-term management plan:
USD1 = JPY133.0, EUR1 = JPY143.0, CNY1 = JPY19.2

Others

16.6

17.0

—

CAGR*2
(%)

241.3

297.0

7.2

Japan

FCM

2.2

7.0

45.7

Urinalysis

34.0

43.0

Hemostasis

66.9

Immunochemistry

Hematology

Diagnostics business

408.1

533.0

9.3

Medical robotics business

2.3

27.0

126.2

410.5

560.0

10.9

Total

Engagement score
Turnover ratio
Female managers ratio

Sales Target by Destination

Fiscal 2022 Fiscal 2025
(Target)(Actual)(primary suppliers in Japan and overseas) Realization of an attractive workplace

Management diversity(percentage of women and non-Japanese nationals)• Development of humanresources• Promotion of health andoccupational safety• Resource circulation
throughout the product Reduction in environ- life cycle
mental burden• Reduction in environmental burden through activities at business offices Strengthening ofGovernance*2 CAGR from fiscal 2022 to 2025

• Promotion of diversity,
equity and inclusion• Corporate governance• Compliance• Risk management

Training time per employee

Fiscal 2025
(Target)*1*1¥156.7 billion

*1

2

*1

94%

90%

71%
8.4%

75%
10% or less
20% ormore

19.5%*2
Women: 8.3%
Non-Japanesenationals: 16.7%
30.0 hours*1
40.0 hours¥22.50
millionValue-added productivity (Group)¥18.74 million

Total annual working hours*3

2,022 hours

1,980 hours

—

0.18%

—

60%

—

40%
reduction

597

*1

21
4,900

*1
*1

Zero product loss
Recycling of containers and packing and utilization of environment compliance materials
Reduction of greenhouse gas emissions(Scope 1, 2)*4
Number of meetings with investors andanalysts
Number of internal reports
Number of information security trainees*3*1 Set as a monitoring index; no target value has been set. *2 Excluding Russia *3 Target: Sysmex Group in Japan * 4 Base year: fiscal 2022
*5 Sysmex Corporation on a non-consolidated basis>>Status of Sustainability Targets P63

41 Sysmex Report 2023

Sysmex Report 2023 42

Activity Report andCorporate Overview

Sales Targets by Business and Field

CSR survey response rate

Fiscal 2022
(Actual)2,977 million
1,323

Corporate Governance112.0 (CAGR*2+15.0%)

Materiality

About Sysmex

Fiscal 2022 (Actual)Long-Term Corporate Strategy: Businesses and Technologies

Key Actions under the Mid-Term Management Plan
1 Enhance Competitiveness and Expand Markets

Related Targets and Indicators
 Sales by field (hematology, urinalysis, hemostasis,
immunochemistry) Consolidated sales in emerging and developing markets* Market share, by field Number of hematology tests** Same as the sustainability targets

Characteristics of New High-End Products in the Hematology Field
 Automated quality control, backup, and re-inspection functions contribute to improve productivity in testing operations
 Modular concept inherited from previous models, enabling flexible customization to meet customer needs
 Space-saving and reduced power consumption

43 Sysmex Report 2023

working to develop highly sensitive gene mutation tests
using PSS technology and pursuing the global development of FISH testing. Furthermore, we aim to promote
the launch of a gene panel testing system for inherited
retinal dystrophy, which was granted health insurance
coverage in Japan in August 2023, to improve the quality of life for patients with rare diseases.
Related Targets and Indicators
 Number of cancer genomes analyzed*
 Number of tests on breast cancer patients using the
OSNA method* Number of biomarkers
 Number of mentions in conference presentations andresearch papers* Same as the sustainability targets

In the Domains of Prevention and Self-Medication,

3 Create a New Business Model
Initiatives to date Commercialized and commenced sale of antimicrobial
susceptibility tests developed in collaboration with Astrego
Diagnostics
 Established a joint venture with OPTiM Corporation tocommercialize digital medicine

Demand for preventive medicine and self-medication
is growing, against the backdrop of growing individual
health awareness and advances in digital healthcare.
Sysmex aims to expand testing capabilities to homecaresettings, clinics and other venues, contributing toward
the realization of preventive medicine and primary care.
For example, we have developed a product that shortens antimicrobial susceptibility testing, which used to takemore than two days, to just 30 minutes. In June 2023, welaunched this product in Europe. The product consists of acompact testing instrument and a reagent cartridge, and it
supports the prescription of appropriate antibiotics in clinics. We also aim to create new solutions by leveraging ourhigh market share in existing businesses, the accumulated
testing data from our instruments, and IT networks connected to medical institutions to utilize testing data.

Initiatives under the New Mid-Term Management Plan
 Promote the global development of antimicrobial
susceptibility tests
 Develop primary care testing systems for home andclinical use
 Create new solutions using test data
Related Targets and Indicators
 Sales of rapid antimicrobial susceptibility testing
systems and regions where introduced
 Number of unique testing parameters developed

Antimicrobial susceptibility testing system instrument andreagent cartridge

Sysmex Report 2023 44

Activity Report andCorporate Overview

Alzheimer’s disease testing, we will focus on leveraging this as a foothold for entering the European andAmerican markets.
In emerging markets characterized by rapid population and economic growth, we will help address theissues customers face and improve access to healthcare by developing and introducing products that meetmarket needs. We have positioned India, in particular, asa key market. There, we will accelerate product launches by establishing a new production base and throughinitiatives across the entire value chain.
In China, we will work to expand our market shareby responding to local needs, such as by increasing
the knockdown production of instruments and accelerating local development of our immunochemistry
reagent portfolio.

In genetic testing, we are making progress with theinternational expansion of our cancer lymph node metastasis testing system, which utilizes our proprietary
OSNA method. Now that the post-covid medical environment has normalized, we plan to accelerate theadoption of this system in the Chinese market, where
we obtained regulatory approval in 2019. In Japan, we
will promote the adoption of the multigene PCR panel
as a companion diagnostic for therapeutic drugs forlung cancer. Through the introduction of these products, we aim to advance personalized medicine andimprove profitability in the life science field.
At the same time, we plan to utilize liquid biopsy
technology, which helps reduce patient burden, to develop and launch new products. For example, we are

Initiatives under the New Mid-Term Management Plan
 Accelerate the introduction into the Chinese market of
products using the OSNA method
 Enhance and commercialize liquid biopsy technology
 Accelerate market introduction of multi-gene PCR panels

Corporate GovernanceIn our mainstay field of hematology, we launched new
high-end models in fiscal 2021, followed by our line oftransport system products, primarily in the Japanesemarket. Our transport systems can automatically measure quality control substances, a world-first featurethat contributes to the overall workflow efficiency oflaboratories. Moving forward, we aim to improve ourgrowth and profitability by expanding sales of these new
products in other regions.
In the hemostasis field, Sysmex will expand its sales
territory through a new contract signed with Siemens
Healthineers in fiscal 2022. While our focus to date has
mainly been on Asia, including Japan and China, under
the new agreement for the mutual supply of equipment and reagents, we will now promote sales, service,and support in Europe and North America, and expand
global sales under our own brand.
In the immunochemistry field, we will expand sales
in Asia, including China, by adopting a new reagent portfolio for existing users. Furthermore, in Japan we beganselling reagents to test for Alzheimer's disease markers
in blood in June 2023, and in August started supplying
these reagents to LDT, a commercial lab in the UnitedStates. In addition to the early commercialization of

Initiatives to date
 Overseas, launched products using the OSNA™ method
and expanded types of cancers targeted Strengthened the measurement infrastructure for liquidbiopsy technology
 Insurance coverage and sales of multi-gene PCR panels commenced

Mid-Term Management Planand Initiatives

Initiatives under the New Mid-Term Management Plan Hematology: Accelerate global development and launch of
new products
 Hemostasis: Establish and begin operating sales, service
and support systems in Europe and the United States
under new global OEM agreements
 Immunochemistry: Expand testing parameters and quickly
commercialize Alzheimer’s disease testing parameters Provide products and services that contribute to an
improvement in accessibility to healthcare and enhancementof healthcare infrastructures in emerging markets

2 Accelerate Commercialization Centered on Genetic Testing

Sysmex’s Value Creation

Initiatives achieved to date Hematology: Developed and launched two new high- andlow-end models
 Hemostasis: Expanded market share by accelerating global
development of new products
 Immunochemistry: Developed and received approval for areagent to test for Alzheimer’s disease, expanded reagent
parameters in China to 57, and developed reagents related
to COVID-19
 Strengthened our sales structure in Brazil, Saudi Arabia andother emerging markets

In the Domain of Personalized Medicine,

About Sysmex

Through Innovation in the Diagnostics Business Domain,

Long-Term Corporate Strategy: Businesses and Technologies

Key Actions under the Mid-Term Management Plan
About Sysmex

Common Initiatives to

1 2 3 Strengthen R&D Capabilities

High-Value-Added Products and Services
Leveraging Technologies Related to
Instruments, Reagents, and IT

Related Targets and Indicators Number of conference presentations and research paper
mentions Joint research projects with academia
 Number of unique testing parameters developed

products and services that offer enhanced usability.
To raise laboratory productivity on the instrument
front, we are increasing analyzer processing capacity,
providing transport systems to enable the automatedhandling of more samples, and making instruments
more compact to offer higher usability. In addition tochemical reagents, we are focusing on the development of test parameters for bio-reagents, which areproduced from biologically derived substances. On the
IT front, we were quick to promote the use of networks
in medical settings. We are developing new applications
and services for the Caresphere™ network solution thatwill increase testing and laboratory efficiency, as well as
boosting quality.

Initiatives under the New Mid-Term
Management Plan
In Japan, we will establish a new organization focusedon the growing fields of digital healthcare and regenerative and cellular medicine. This new entity will be
responsible for strategic planning, promotion, and efforts to accelerate commercialization. We are also
undergoing organizational restructuring to enhancecollaboration among more specialized teams and allocate resources more flexibly. For example, in our R&D
divisions we have consolidated data scientists, creatinga structure to implement initiatives more effectively.
We established a research base in Tokyo and focus onbuilding a network with key opinion leaders in the Tokyo
metropolitan area, as well as securing data scientists
and other talented people. As its global R&D structure,with Technopark serving as the hub, Sysmex will conduct R&D in nine countries, expanding its efforts in eachregion. In this manner, we aim to strengthen relationships with top-level academia and key opinion leaders invarious countries, as well as to enhance R&D tailored toregional needs.
On the technology front, we will enhance our development capabilities by combining AI and simulation
technologies in bio-diagnostic reagents, which areused in the hemostasis and immunochemistry fields.

Value-Generating Initiatives

R&D Base

Cell measurement technologies

Technopark(Japan)Technologies for detecting proteins in
the blood swiftly and with a highdegree of sensitivity(Juntendo University)

Fluids
OpticsElectronics

Reagents
Reagents

R&D Center Asia Pacific(Singapore)

Chemistry

Others, totaling 24 locationsin 9 countries

BiologyOpen Innovation(universities, medical and research institutions, pharmaceutical companies, and others)
Comprehensive
agreement aimed at thedevelopment of new
diagnostics in the field ofdementia (Eisai Co., Ltd.)

Mechanics

Sysmex R&D Center
Europe GmbH (Germany)
Wuxi Diagnostic Reagent
Development Center (China)

Gene measurement technologies

Joint research related toimage analysis using AI
technology in the field ofhematology

Instruments

Sysmex R&D Center
Americas, Inc. (United States)

Protein measurement technologies

R&D andcommercialization ofregenerative medicine
products using stem cells

Development of IT
solutions to support
next-generation
healthcare and diagnostics(JCR Pharmaceuticals Co., Ltd.)(OPTiM Corporation)

Instruments

IT

IT

Sysmex

Software
AI-related

 Development of transport systems
 Higher throughput capacity
 Greater compactness
 Automation of quality control
 Environmental friendliness throughout the productlife cycle

 Higher laboratory productivity leading to more efficientmanagement
 Reduced patient wait times
 Effective use of laboratory space Curtailed medical expenses through more efficient testing Reduced environmental burden (decreases in electricity

consumption, waste, and CO2 emitted during distribution)

Chemical reagents(Hematology, urinalysis)
 Development of new testing parameters Development of concentrated reagents(hematology)

 Enhancing the quality of healthcare through the creation of

Biological reagents(Hemostasis, immunochemistry, life science)
 Establishment of a bio-diagnostics reagent base(2019)
 Development of new testing parameters Creation of synergy within Group companies(HYPHEN BioMed, Oxford Gene Technology,
and others) Recycling of plastic containers■ Increased employment at various reagent factories

new testing parameters Decreasing reagent-changing frequency and reducing

storage space through the use of concentrated reagents
 Reduced environmental impact (reduced CO2 emissions

during transport and a shift away from plastics)

 Began offering the SNCS network service (1999)
 Provision of Caresphere network solution utilizing
AI technologies and ICT (2018)
 Moved to online external quality control
 Introduction of virtual training (Sysmex America) Higher-quality testing data Enhancing the quality of healthcare through the creationof new testing parameters Conserving biodiversity by using alternatives toanimal-derived substances in reagents

 Ensuring the stability of testing data Configuring systems to prevent the interruption of testing(breakdown prevention and swift recovery) More efficient laboratory operations(reduced travel time for product training) Reducing CO2 emissions from travel*1  Value provided to customers (such as medical institutions)

45 Sysmex Report 2023

 Value provided to society

Sysmex Report 2023 46

Activity Report andCorporate Overview

Technologies for analyzing the number
and type of cells in blood and urine andfacilitating the analysis of intracellular
information

Technologies for measuring gene
quantities in cancer cells and enabling
the detection of cancer-cell-derived
DNA in the blood

Specializations
That Add Value

Global R&D Locations

Three Technology Platforms

Value Provided to Stakeholders*1

Corporate Governance Value Provided through R&D

Mid-Term Management Planand Initiatives

One of Sysmex’s distinguishing features is its technologies related to instruments, reagents, and IT. By fusing
these technologies, we work to ensure the provision of
accurate testing data—a critical consideration in testing. These technologies also allow us to make improvements and to quickly determine the source of errors
when they occur. In addition to creating new tests anddiagnostic technologies, we provide high-value-added

Initiatives under the New Mid-Term Management Plan Reinforce our global R&D function
 Strengthen digitalization and AI technologies (including theacquisition and training of human resources) Develop technologies that help resolve environmental andsocial issues

Sysmex’s Value Creation

Initiatives completed to date
 Established an R&D base in Singapore
 Strengthened the foundation of Wuxi Diagnostic Reagent
Development Center (China)
 Established reagent production technology using our
bio-reagent center

Long-Term Corporate Strategy: Businesses and Technologies

Key Actions under the Mid-Term Management Plan
4 Accelerate Business Growth, Centered on the Medical Robotics Business
Diverse R&D Personnel
A major Sysmex strength is its ability to develop equipment, reagents, and IT solutions across different measurement technology platforms (cells, proteins, andgenes), thanks to our diverse and highly skilled workforce. Under our new mid-term management plan, we
will focus on the global hiring of IT talent, including data
scientists, in addition to experts in biotechnology.

Initiatives Completed to Date Medical robotics business: Health coverage expanded toinclude gastroenterology and gynecology
 Regenerative and cellular medicine: Established a joint
venture, began business development and considerationof commercialization

Initiatives under the New Mid-Term Management Plan
 Medical robotics business: Accelerate deployment of ourrobotic assisted surgery system in Japan and roll out overseas
 Regenerative and cellular medicine: Develop quality control
tests and automation technologies

In the medical robotics business, Sysmex has been thewith key opinion leaders in various regions and prepare

global general distributor for Medicaroid Corporation

for market entry in the Asia-Pacific region, as well as thesince 2020, when it commenced the full-scale launch

United States and EMEA.

in Japan of Medicaroid’s robotic- assisted surgery

Liquids

OpticsElectronics
Mechanics

FY2022Biochemistry

In regenerative and cellular medicine, AlliedCelsystem. Initially, procedures eligible for insurance reim-

Corporation, a joint venture we launched in 2022 withbursement were limited to urology, but this has been

JCR Pharmaceuticals, will be at the center of technolog-

expanded to include gastroenterology and gynecology,

ical development and efforts toward the early commer-

which together account for over 70% of robot-assisted

cialization of regenerative medicine products employing

surgeries in Japan. Moreover, an increasing number ofstem cells and other types of cells.

surgical support robots, which reduce the burden on patients, are eligible for additional insurance coverage under medical reimbursement, further driving the growth

SoftwareUnder the new mid-term management plan, we willleverage Sysmex’s strengths in sales, service and support to accelerate the introduction and installation ofthese systems. Additionally, we will expand the deployment of solutions for the entire operating room throughsupport systems utilizing IT, and work to build a founda-

Sysmex strategically promotes intellectual property
activities, evaluating its own intellectual property, as
well as that of third parties. In an effort to enhance thegovernance of intellectual property, activities for theyear are reviewed and discussed by the Management
Board and at other management meetings.
As part of our business expansion efforts, weare actively promoting the acquisition of intellectual
property rights on a global scale. Overall, 85% of ourintellectual property rights are held overseas. We
are working to secure patent rights, utility modelrights, and design rights primarily in Japan, the UnitedStates, Europe, and China for technologies derived
from our measurement technology platforms forcells, proteins, and genes, which leads to the provision of high-value products and services. We arealso securing global trademark rights for important
brands, including in emerging and developing markets, with a particular focus on our corporate brand,in 195 countries and regions.

The global market for surgical support robots is Number of Patents, Utility Models and Designs Held,by Technology Platform

forecast to grow by over 10% annually. Leveraging thesales and service network developed through in its diagnostics business, Sysmex will also establish networks

OthersGenes Global Market for Surgical Support Robots

FY2022

USD 20,000 million

Cells

CAGR 13%

Proteins

Related Targets and Indicators Number of patents*
 Number of new patents** Same as the sustainability targets

Robotic-assisted surgery system
2019

2020

2021

2022

2023
2024
2025
2030 (Fiscal year)(Forecast) (Forecast) (Forecast) (Forecast)
Note: Based on customer purchase priceSources: TechSci Research, 2030 figures are Medicaroid forecasts

47 Sysmex Report 2023

Sysmex Report 2023 48

Activity Report andCorporate Overview

tion that supports remote surgery.

Intellectual Property That Enhances Our Global Competitiveness

Medicaroid’s Expansion, by Region
Japan• Fiscal 2020: Acquired regulatory approval, launched foruse in urology• Fiscal 2022: Health insurance coverage expanded toinclude gastroenterology and gynecology
Asia Pacific• Fiscal 2023: Acquire regulatory approval in Singapore
United States, EMEA
• Preparing to file for regulatory approval

Corporate Governanceof the Japanese market for surgical support robots.

Related Targets and Indicators
 Number of robotic assisted surgery systems installed,
number of surgeries
 Establishment of quality control methods in theregenerative and cellular medicine domain

Mid-Term Management Planand Initiatives

 Breakdown of Specializations among R&D Personnel

Sysmex’s Value Creation

Additionally, we will work towards realizing personalized medicine by focusing on the IVD development ofliquid biopsy technology (cells, proteins, and genes) andcreating new diagnostic value through approaches thatcombine existing testing techniques.
To achieve a circular value chain, we will step up ourdesign of environmentally friendly products. In addition
to ongoing efforts to make instruments more powersaving and compact, and to extend expiration periods
for reagents, we will expand resource-conscious designprinciples across all our products. We will also continue
to explore the development of alternative materials as ameans of preserving biodiversity.

About Sysmex

In the Therapeutic Domain,

Long-Term Corporate Strategy: Businesses and Technologies

Key Actions under the Mid-Term Management Plan
1 2 3 Expansion of Procurement, Production andDistribution Structures

supply system between reagent production bases
worldwide as part of our BCP measures.
>>Manufacturing System Supporting Global Product Supply
P104

Sysmex currently covers over 190 countries and re-* Same as the sustainability targets

models that utilize digital information such as data ac-

through direct sales and service structures as well as

cumulated through Caresphere and service data, in our

through alliances with major global companies.

quest to provide new value to the world.

Under the new mid-term management plan, we
will expand our hemostasis and immunochemistry
and American markets. In the hemostasis field, we will

Related Targets and Indicators
 Hematology market share*
 Sales in emerging and developing markets*

expand our direct sales area based on a global OEM* Same as the sustainability targets

contract with Siemens Healthineers. In immunochemistry, we will enter the market through blood-based
Alzheimer’s disease testing. To achieve these goals, wewill work on obtaining regulatory approvals in each country and reinforcing sales and service structures.

 Per Capita Medical ExpenditureIndia

As economic development continues, more coun-

China

tries are likely to require improved access to healthcareJapanand higher medical quality. Sysmex is strengthening initiatives positioned to address future healthcare needs in
key locations such as India, where we anticipate strong
market growth.

(1/70th Japan’s level)(1/7th Japan’s level)

0

1,000

2,000

3,000

4,000

5,000
(USD)

Source: WHO website
https://apps.who.int/gho/data/view.main.GHEDCHEpcUSSHA2011v?lang=en
OECD Health Statistics 2021 (2019 data) Overview of Sales, Service and Support Activities
Direct sales
ratio(fiscal 2022)

Japan

100%

Americas

76.6%

EMEA

75.2%

China

1.5%

Asia Pacific

52.4%

Overview of activities under the new mid-term management plan Accelerate market development, particularly for new products in our mainstay hematology field Establish a new diagnostic flow for Alzheimer's disease testing and promote the widespread use of
testing Promote the introduction of robotic-assisted surgery systems and the diffusion of new values such as
remote surgery
 Strengthen sales structures in Central and South America and develop sales activities tailored to theneeds of each country Reinforce regulatory affairs and our sales and service structure in conjunction with the expansion of
direct sales areas in the hemostasis and immunochemistry fields
 Expand markets in countries/regions that have shifted to a direct sales structure, such as Iberia andSaudi Arabia Reinforce regulatory affairs and our sales and service structure in conjunction with the expansion of
direct sales areas in the hemostasis and immunochemistry fields
 Accelerate market introduction and penetration of new value through our rapid antimicrobial
susceptibility testing systemE xpand local knockdown production in response to government procurement policy (in the fields ofhematology and immunochemistry) Increase market share in immunochemistry by developing testing parameters for immunochemistry Strengthen our sales and service structure to increase market share in India Promote our medical robotics business
Sysmex Report 2023 50

Activity Report andCorporate Overview

Despite facing challenges in securing raw materials and semiconductors due to the spread of COVID-19 andthe situation in Ukraine, Sysmex has maintained a stable supply of products in the healthcare field. This is due inpart to our internal oversight of both our supply and engineering chains. Through effective information sharing
throughout the supply chain and the ability to adapt to sourcing changes and design modifications from raw
material manufacturers, Sysmex has been able to make supply adjustments flexibly. Furthermore, based onthese experiences, we have established specialized departments, such as the Procurement Information Center(responsible for the strategic sourcing of semiconductors) and the Supply Planning Department (overseeing
supply chain information), to coordinate information about sales forecasts, inventory status and production plansacross different regions. By formalizing these specialized departments, Sysmex aims to further enhance thestability of product supply to its customers.

In the service and support area, we will build service

Corporate Governance

Related Targets and Indicators CSR survey response rate
(Tier 1 suppliers in Japan and overseas)* Number of training sessions for suppliers (Japan)*

Initiatives under the New Mid-Term Management Plan Enter the immunochemistry market in Europe and theUnited States through Alzheimer's disease testing Establish a direct sales structure for the hematology field in
Europe and the United States Strengthen our business foundation to support access toand quality of healthcare in emerging markets
 Establish a new service model utilizing Carespheregions. We tailor our business to local characteristics

businesses beyond Japan and Asia into the European

Ensuring Product Supply So Testing Does Not Stop: What We Learned from COVID-19

49 Sysmex Report 2023

Initiatives Completed to Date
 Promoted direct sales in overseas regions andstrengthened our sales and service structure byleveraging alliances Established a sales structure for the medical robotics
business Developed efficient service and support through network
solutions, such as Caresphere

Mid-Term Management Planand Initiatives

As a company that supports healthcare, Sysmex has
established a rigorous quality control and global production structure. By promoting innovation, we strive toensure the continuous delivery of high-quality products
to the medical community.
In fiscal 2022, in Japan we introduced a new
manufacturing support system (MES) in our instrument
manufacturing division, enabling us to achieve more
efficient and precise operations through digitalization.
As part of our new mid-term management plan, we will
expand the implementation of this MES to our domestic
reagent production department and overseas factories,
facilitating the smooth transfer of manufacturing operations overseas.
We will step up our use of AI technology in current
reagent production processes. Individual differences inbio-reagent materials require adjustments during the formulation stage. By leveraging AI technology to minimize
waste generated through adjustments, and to improve efficiency, we aim to reduce manufacturing costs, eliminate
quality discrepancies, and enhance customer satisfaction.
In addition, we will continue to focus on shortening
manufacturing lead times and reinforcing the mutual

Initiatives under the New Mid-Term Management Plan
 Procurement: Gather information on the procurement
environment by establishing a new department dedicatedto strategic procurement
 Production: Introduce MES to reagent production
divisions and overseas regions, establish a new plant inIndia, and expand knockdown production in China
 Distribution: Establish a new specialized department tomanage global demand and supply with the aim of further
stabilizing supply

1 2 3 4 Expanding Our Sales, Service and Support Structure

Sysmex’s Value Creation

Initiatives Completed to Date
 Procurement: Stably procured raw materials andsemiconductors during COVID-19 pandemic Production: Introduced a new manufacturing support
system (MES) in the instrument manufacturing division
 Distribution: Created a sustainable cold chain without
using dry ice (for some products)

Common Initiatives

About Sysmex

Common Initiatives

Long-Term Corporate Strategy: Eco-social

Key Actions under the Mid-Term Management Plan
About Sysmex

Realize a Circular Resource Value Chain and
5 Transform with a View to Solving Social Issues

Reduction of GHG emissions(Scopes 1 and 2)

55% reduction(Base year: Fiscal 2022)

Resource circulation

Biodiversity

Water consumption
by main reagent factories

90pt reduction

Reduction of GHG emissions(Scope 3)

35% reduction

In January 2021, Sysmex expressed its support for the
TCFD recommendations and disclosed information basedon this framework.
>>Sysmex Sustainability Data Book 2023, P63

51 Sysmex Report 2023

Resource saving, power saving,use of alternatives to animal-derived
substances, and water conservation

Environmentallyconscious design

Total waste per unit of net sales

15% reduction

Percentage of containers andpackaging materials recycled,
and environmentallyconscious materials used

Expanded lineup of
products made fromanimal-derived raw materials

Production

Lowcarbon
production

Instruments:
Collaboration with high-performancematerial manufacturers and ventures
Reagents:
Chemical raw materials with low
environmental impact and accelerated
substitution of bio-derived raw materials

Reuse

Recycle• Supplier participation• Green procurement

Replace

Sales

Service

Customers

Dry ice-free, RFID utilization

Green logistics
Market recovery

Semiconductors,
etc.
Market recovery• Recover• ReusePlastic containers

Open innovation with customers, alliance partners, other companies, and suppliers, etc.
 Examples of Initiatives to Achieve a Competitive Advantage and Realize Environmental Considerations

Initiatives

silkworms and cultured cells

 Spread of concentrated reagents(hematology and urinalysis fields)

Environmental and social considerations Enhanced competitiveness• Reduction of biologically derived
substances• Reduction of water consumption
and GHG emissions• Curtailment of GHG emissions• Conservation of packaging andpetroleum resources100%

 Shift reagent production overseas*2 Targets are based on the Science-Based Targets (SBTs)

 Endorsing the TCFD Recommendations

ReduceProcurement

Development

 Production of raw materials using

Zero

90% or more

Research*1 4Rs: Sysmex’s “4Rs” are reduce, reuse, recycle, and replace.

Disposal of unused Sysmex products

Use of renewable energy

Search for needs that connect business and social issues• Stable supply of raw materials• Stabilization of quality• Improved usability (reduced frequency of reagent
changes in the laboratory)• Reduction of inventory storage space• Reduction of GHG emissions• Realization of stable supply and reductionof transportation costs• Reduction in waste• Increased usability• Stabilization of quality• Reduction of GHG emissions• Reduction of transportation costs• Increased flexibility and conveniencein distribution

 Declaring Our Goal to Become Carbon Neutral
In 2022, we set a goal of reducing
greenhouse gas emissions to zero in realterms by 2040. (Scopes 1 and 2)

 Extension of reagent

Note: Scope 1 refers to greenhouse gases emitted directly by Company
facilities, factories, and Company vehicles. Scope 2 aregreenhouse gases emitted indirectly by the Company due toenergy use.

 Dry ice-free transportation

expiration dates(e.g., reagents for genetic testing)Sysmex Report 2023 52

Activity Report andCorporate Overview

Water Circular Resource Value Chain>>Status of Sustainability Targets P63

 Long-Term Environmental Objectives (Fiscal 2033)

Climate change*2* Same as the sustainability targets

Corporate GovernanceSpecifically, we will step up our efforts to design environmentally friendly products and apply materials science to develop non-animal derived materials. We will
also work to reduce product waste by extending the
expiration dates of reagents and using RFID technology
to curtail waste in product parts. Additionally, we are
initiating discussions around the recycling of container
packaging, such as recycling the plastic containers used
for many reagents.
In recent years, more medical institutions havebeen introducing initiatives targeting carbon neutrality.
We believe that such efforts to reduce environmental
impact are not only a social responsibility for companies; they also help establish a competitive advantage inthe market.
We conduct our business activities based on themateriality identified in accordance with our long-term
corporate strategy, in an effort to address social issues
other than climate change.

 Reduction of GHG emissions (Scopes 1, 2, 3)*
 Rate of reduction in water consumption (major reagent
factories)*
 Reduced use of animal-derived raw materials

Mid-Term Management Planand Initiatives

Adapting to and mitigating climate change and protecting water resources and biodiversity are major environmental issues that need to be addressed by the entire
world. In healthcare, there is growing concern regarding
increases in medical costs, and pressure on the medical infrastructure due to an expansion of areas where
tropical diseases and infectious diseases are endemic asa result of temperature rise, or increases in respiratory
diseases are caused by air pollution.
Along with our long-term corporate strategy, weformulated the new “Sysmex Eco-Vision 2033,” identified
a new materiality item (“reduction in environmental burden”), and spelled out initiatives for resource circulation
throughout the product life cycle and the reduction ofenvironmental burdens through our business activities.
In line with the mid-term management plan’s core
strategy, we will work with our customers and suppliers to achieve a circular resource value chain and strive
to reduce environmental impact throughout the entire
product lifecycle. We will also foster green innovation
through our 4Rs*1 to decrease environmental impact.

Related Targets and Indicators
 Achieve zero product losses*
 Complete switch to recycled or environmentallyconscious materials*
 Renewable energy ratio*

Sysmex’s Value Creation

Initiatives under the New Mid-Term Management Plan
 Promote environmentally friendly design to realize acircular resource value chain
 Encourage the recycling of plastic reagent containers andother packaging
 Strengthen efforts to reduce product waste

Local regulations
Component level circulation

Initiatives Completed to Date Created power-saving and compact new products in thehematology field (using approximately 40% less power) Created a system for dry ice-free ultralow-temperaturetransportation
 Reduced disposal of product parts by using RFID

Long-Term Corporate Strategy: Human Capital

Key Actions under the Mid-Term Management Plan
About Sysmex

Enhance Corporate Value by Strengthening Human Capital
6 and Our Management Base
Perspective on Human CapitalThroughputs
Our ideals for human capital
Optimization of the human resources portfolio

Inputs

Cultivate and Acquire Human Resources to
Drive Sustainable Growth

Outputs

High engagement• High productivity• Provision of added value
to stakeholders• Enhancement of individual well-being• Promotion of DE&I

reagents locally that are suited to local needs, especiallyin emerging markets in Asia and Africa, and particularly
in India. We also plan to recruit personnel with special-

Demonstration of teamwork at its best
• Improvement of corporate culture(Respect for autonomy and promotion of challenge)• Securing and fostering of an abundant leadership cadre

Sysmex will promote the expansion of the Group’s

ized scientific expertise in the hemostasis field to ex-human resources portfolio and strengthen its DE&I ef-

pand our business in Europe and the United States.

forts through flexible workstyles as part of its new mid-

To enhance sustainable corporate value, we willterm management plan, in order to execute its humancertify and promote succession planning for global key

capital strategy.

positions across the Group, in the aim of strengthening

To expand the human resources portfolio, we rec-up a human capital strategy. We aim to realize our long-that enable diverse human resources to thrive, regard-

ognize the need to secure, develop and appropriately

term vision through initiatives aligned with three ideals

less of time, location or employment status. The third

allocate talent in line with the expansion of our businessacterized by respect for employees’ individuality byfor human capital.

ideal is “demonstration of teamwork at its best.” To

domains and functions. Therefore, in addition to nurturing

enhancing awareness of unconscious bias and by pro-

The first ideal is “optimization of our human re-maximize teamwork, it is crucial to respect autonomy

existing talent, we will also hire highly skilled professionals

moting initiatives for flexible work practices as part ofsources portfolio.” This refers to allocating talent appro-and foster a corporate culture that embraces challenge,

from outside the Group in new business domains.

our DE&I efforts.

priately so they can contribute to the implementation ofas well as ensuring an abundant pool of leaders andTo drive our development in new areas such as

our strategies and the sustainable enhancement of cor-

nurturing their development. Sysmex will continue toregenerative and cellular medicine, as well as to develop

porate value. To this end, we will work on organizational

recruit and develop leaders who can drive both existing

unique testing parameters such as Alzheimer’s diseasedevelopment from a multidimensional perspective,

and new businesses by enhancing visibility and provid-

testing, we will augment our workforce with people who

Sysmex uses value-added productivity as a key indicatorconsidering business domains, functions, skills, exper-

ing enough training opportunities for succession to key

have bioscience knowledge and expertise that can be

for monitoring human capital. We collect data on thetise, and diversity that align with our management strat-

global positions. Regarding organizational culture, weapplied to such fields as immunochemistry, hemostasis,

number of employees, personnel costs, and other fac-egy. The second ideal, “a high level of engagement,”

will publish the results of our annual corporate culture

and life science. From universities and other institutions

tors on a monthly basis throughout the entire Group tomeans that each employee is fulfilled both mentally

our pipeline of next-generation talent.
We will continue to build a work environment char-

Monitoring Human Capitalsurvey to employees and engage in dialogue with them.

around the world, we will also recruit people with thehelp us understand trends at the regional and country

and physically, and they are attaining their own sense of

Furthermore, we will continue to promote data

latest digital technology skills, which are essential to ourlevel. Additionally, we hold regular meetings with the HR

fulfillment. To achieve this goal, we will strive to create

disclosure based on international standards and strive

future growth.

leaders of each consolidated local subsidiary to discussa working environment that facilitates the well-being ofto achieve our long-term vision through dialogues witheach individual and provides opportunities for employee

our stakeholders.

We will continue to recruit and develop skilled personnel to develop and manufacture instruments andgrowth. Additionally, we will promote fair and equitable

key topics related to human capital and drive global
improvements in value-added productivity.
 Value-Added Productivity per Employee* (Group)

Key Sustainability Targets and Monitoring Indicators for Human Capital
Inputs
Items related to investment in
human capitalThroughputs
Items related to employee experienceand corporate culture
Outputs
Items related to results of utilizing
human capital

Indicator
Staffing plan, number of personnel
Average education time*1
Personnel expenses
Engagement score*1
Female managers ratio*1
Percentage reporting a favorable
impression of the “Sysmex Way”*3
Percentage reporting a favorable
impression of “well-being”*3

Fiscal 2022 (Actual) Fiscal 2025 (Target)
11,126—30.0 hours
40. hours¥110.6 billion
—
71%
75%
19.5%*2
20% or more
81%

—

72%

—

¥18.74 million¥22.50 million

22.50 (¥ million)

18.74

2021

2022

19.38

16.06

2020

Value-added productivity per person

18.72

2023
(Target)2025 (Fiscal year)(Target)* (Operating profit + labor cost + depreciation)/number of employees*1 Same as the sustainability targets *2 Excluding Russia *3 Corporate Culture Survey

53 Sysmex Report 2023

Sysmex Report 2023 54

Activity Report andCorporate Overview

opportunities, drive DE&I initiatives, and create systems

Corporate GovernanceIn its long-term corporate strategy, Sysmex has drawn

Mid-Term Management Planand Initiatives• Securing the workforce• Provision of growth
opportunities• Competitivecompensation• Appropriate human resources to drive strategy
Business domains (A-D), regions/functions
Skills, expertise and diversity

Initiatives under Our New Mid-Term Management Plan Expand the Group's HR portfolio based on the long-term
corporate strategy- Acquire, cultivate and deploy human resources- Develop next-generation leaders for key global positions
 Strengthen DE&I initiatives through flexible work styles

Sysmex’s Value Creation

 Human Capital Strategy

Initiatives Completed to Date
 Implemented a global HR policy and a consistentpersonnel management system for the Group Promoted smart work throughout the Group Utilized DX in human resource management

Message from the Executive in Charge of Finance Major KPIs
Net Sales

Double-digit growth(fiscal 2033 target under VA33: ¥1 trillion or more)• Achieve high growth in the expanding healthcare market

Kenji Tachibana

Free Cash Flow

ROE

20% or more
• High profitability to allow investment for the future and stableshareholder returns• Healthy financial position due to increased operating cash flow andreinvestment in growth• Capital efficiency that meets stakeholder expectations and iscomparable to global companies in the same industry

Sales growth rate
Operating margin

20.9

18.3

4.1

2.9

53.1
44.7

56.8
27.2

27.7

688 (¥ billion)
17.1
23.7
(51.7)(35.0)

2019(29.1)

2020

2021

2022 (FY)

In domains such as life science, personalized prevention, and prognosis monitoring, we will continue topursue a business model of generating revenue throughreagents, services, support and solutions, they createdby healthcare support utilizing new diagnostic methods
and data. We will also strive to improve profitability
through the full-fledged expansion of the medical robotics business, including overseas.
* Sales of reagents, services and support, others

Financial Strategy under the Mid-Term
Management Plan
Based on the VA33 financial policy, under the mid-term
management plan (fiscal 2023 to fiscal 2025), by fiscal
2025 we are targeting net sales of ¥560.0 billion, operating profit of ¥112.0 billion, ROE 16% and free cash flowof ¥46.0 billion. We aim for a compound annual growthrate (CAGR) for net sales of 10% or more from fiscal
2022 to fiscal 2025 and anticipate an operating marginof 20% in fiscal 2025.
Our existing diagnostics business will be the main
driver of sales and profits. To grow net sales, we will
strive to increase market share by leveraging thecompetitive advantage of our products and services.
We also recognize the importance of capturing each
Sysmex Report 2023 56

Activity Report andCorporate Overview

VA33 also calls for us to expand into new areas, so
we will need to pursue capital and investment efficiencies even more than before. Sysmex’s ROE has beenaround 10% to 15% in recent years, which exceeds ourcost of capital. Compared to other global companies,
however, we still have room for improvement. In VA33,
we anticipate that the cost of capital will increase as we
pursue riskier investments, and we will place greater
emphasis on ROE levels. In terms of investment efficiency, we will consider adopting ROIC to properly
manage return on invested capital and payback periods.
Looking at the revenue structure, even while
expanding our business domain and cultivating new
business models, Sysmex will maintain and expand its
distinctive recurring profit model. Our diagnostics business, which is our core source of revenue, involves firstselling instruments. After installation, we then generatecontinuous sales from reagents, services and support.
Reagents, services and support are more profitable thaninstruments, so the profit model is stable. For many
years, we have been focusing on the expansion of testing parameters and the enhancement of high-valueadded service and support. These contribute to ourcompetitive advantage and heighten our stability andgrowth potential. These recurring sales accounted for
77.6% of net sales in fiscal 2022.

12.8 (%)

Corporate Governance

55 Sysmex Report 2023

Long-Term Corporate Strategy 2033 (VA33), which
commenced in fiscal 2023, sets net sales, the operating
margin, free cash flow and ROE as priority financial indicators. As quantitative targets under VA33, we have set
the goals of net sales of ¥1 trillion or more and an operating margin of 20% or more by fiscal 2033.
These targets are based on Sysmex’s approach tovalue creation and growth. Our overarching mission is“Shaping the advancement of healthcare.” Within thismission, we have numerous growth themes, such asadding new value to existing businesses, expanding our
regions, developing unique testing parameters to contribute to areas like Alzheimer’s disease testing and personalized medicine, and rolling out new businesses suchas robotic assisted surgery systems. These aims callfor us to make up-front investments in technology andcontinuously expand our sources of investment. Our
fundamental policy remains the same, namely to generate profits through high net sales growth and profitability, and reinvest the cash. If we can sustain double-digit
growth, in addition to inorganic growth, we can achieve
net sales of more than ¥1 trillion by fiscal 2033, a decadefrom now.

58.7

4.6
(40.1)

201817.9 (%)

18.5

1.0

(25.9)

Financial Policy under Long-Term Corporate
Strategy 2033 (VA33)

19.2

16.4

Mid-Term Management Planand Initiatives

Operating cash flow
Investing cash flow
Free cash flow

In order to continue investing aggressively for the future, we will
advance our financial and capital
strategies by pursuing capital andinvestment efficiency more thanever before.

Sysmex’s Value Creation

Member of the Managing Board andSenior Executive Officer
Senior Managing Director
Corporate Management, Regulatory Affairs &Quality Assurance and DX Strategy Development

About Sysmex

Operating Margin R&D Expenses/R&D Expenses as a Percentage of Net Sales

 Financial Guidance under the New Mid-Term Management Plan

R&D expenses
R&D expenses as a percentage¥560.0 billion

Net sales Capital Expenditure/Depreciation and Amortization
Capital expenditure (both tangible and intangible)
Depreciation and amortization
47.80 (¥ billion)

37.50 (¥ billion)

42.03

Operating profit¥112.0 billion

ROE

16.0%

26.78

(Fiscal 2025 targets)

22.51

21.76

R&D expenses¥125.0 billion(Total for fiscal 2023–2025)

2019

2020

2021

2022

25.71
23.95
25.57

2023 (FY)(Planned)

2019

2020

(¥ billion)

27.43

2021

2022

 Cash Dividends Applicable to the Year / Dividend Payout Ratio (Consolidated)
Cash dividends applicable to the year (figures adjusted for stock split)
Dividend payout ratio

2023 (FY)(Planned)

66
52

Others
280.0
or
more
184.4

Cash in

72

84(Yen)58

38
46.8 Shareholder returns
170.0

Investment in facilities
115.9 and businesses

Total under Previous
three
the new
years
mid-termmanagement plan

27

3.75

6.5

9

12

12.5

14

15

17

20

37.5
35.4 43.1 47.1 36.0 (%)
26.8 31.9 29.4 27.0 29.1 29.1 27.1 29.6 27.5 29.7 35.1
22.6 17.8 17.9 20.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (FY)5

(Planned)

Note: Two-for-one stock splits conducted on November 18, 2005, April 1, 2011 and April 1, 2014.

Cash used

and optimized global staffing. Earlier, I referred to therevenue structure. Profitability can vary substantiallybased on how many testing parameters a single instrument can handle. We are accelerating the expansionof testing parameters in the hemostasis and immunochemistry fields. In particular, immunochemistry field will
have a much greater impact due to the higher unit price.

Allocation of Capital under the Mid-Term
Management Plan
Our main areas of growth investment under the new
mid-term management plan will be fore R&D and personnel, which are recorded as business expenses. Our
allocation of capital will focus on investment in facilities
and businesses, including DX.
In terms of business expenses, we expect R&D
spending to account for around 7–8% of net sales.
These expenditures will mainly go toward the development of next-generation instruments and reagents, thedevelopment of new technologies, and expenses related to regulatory approvals. Under the new mid-term
management plan, we have earmarked a total of ¥125.0
billion for R&D expenses. This is 55.7% higher than during the previous three years. Our investment in humancapital will focus on enhancing employee engagement,

putting in place an environment that enables each employee to work to their potential, broadening and implementing education and training, and accelerating DE&I.
Prioritizing operating cash flow as the main sourceof our funding, we will allocate capital toward investment in facilities and businesses as well as shareholder
returns. Facility investments will include intangible assets such as DX investments, as well as an increase inlease assets for instruments related to the expansionof direct sales and services in emerging countries, andthe establishment of infrastructure in countries such as
India. In terms of business investment, we will pursue
M&A flexibly to accelerate the development and cultivation of new businesses. In fiscal 2022, we invested
in and acquired Sysmex Astrego, which possesses
advanced antimicrobial susceptibility testing technology. As in this case, Sysmex’s M&A activity will betechnology-focused. Although it is not easy to predictthe precise timing of return on investment and the scaleof earnings, under the new mid-term management planwe will monitor these factors more closely than everbefore, as we expect invest aggressively in businesses.
Shareholder returns are based on increasing corporate value and returning profits to shareholders
based on cash flow growth. To date, we have been
striving to continuously increase dividends with a target

payout ratio of 30% or more, and we will continue topromote a dividend policy that focuses on continued
stable dividends.

Future KPIs
We are organizing and systematizing KPIs in order tomonitor and share the progress of our strategies internally and externally. However, we believe one thing thatwill determine our ability to implement future strategies
is the degree to which employees feel comfortable withthose strategies. For that reason, we think that using thesame mechanisms and formal indicators as other companies will be insufficient. For instance, it is difficult to
introduce KPIs for ROIC by field because management
is not divided according to field; this requires a great
deal of ingenuity and consideration. On the other hand,customer satisfaction indicators such as NPS® (Net
Promoter Score) and engagement score are importantdrivers of value creation, and these non-financial indicators can improve ROIC. We intend to set KPIs that canmake Sysmex’s value creation and corporate value visible, and to energize dialogue with stakeholders.

Sysmex Report 2023 58

Activity Report andCorporate Overview

market’s potential in individual fields and proactively
enlarging the market ourselves. From a regional perspective, healthcare expenses per capita in China areabout 1/7th that of Japan. In India, this spending is at
1/70th Japan’s level, pointing to significant room formarket growth as healthcare needs increase. In our new
mid-term management plan, we will continue to sustain
growth momentum by cultivating emerging markets in
the hematology and urinalysis fields, increasing testing
parameters in the hemostasis and immunology fields,
and pursuing global expansion.
On the profitability front, over the past few years
we have incurred significant expenses related to internal
DX investments initiated in 2018, as well for new product development and expenses in the medical robotics
business. However, we are now entering the phase ofrecouping these investments. On DX in particular, weare transitioning from individually optimized IT systems
to globally optimized systems, and a series of new IT
systems will be operational by fiscal 2023. Although
depreciation of intangible assets will rise, by fiscal 2025
we anticipate that productivity improvements will outpace these higher costs. We expect to enjoy a range ofbenefits from these DX effects: business process improvements across all divisions, faster R&D, enhanced
service and support through the centralization of data,

72

82

Corporate GovernancePrevious Total under
the new
three
mid-term
years
management plan

70

76

Mid-Term Management Planand Initiatives

Cash and deposits, loans

57 Sysmex Report 2023

35.00

• Dividend payout ratio of 30%• Stable dividend increases backed by earnings growth

Shareholder returns

Operating cash flow

31.80

Sysmex’s Value Creation¥46.0 billion

27.16
8.2 (%)

7.6

7.4

7.4

7.2

Free cash flow

33.27

About Sysmex

31.06

Performance Highlights (As of the end of fiscal 2022)
Financial Performance Operating Profit/Operating Margin Operating Cash Flow/Free Cash Flow¥

410.5 billion¥

73.6 billion 17.9%¥

68.8 billion ¥17.0 billion¥(Up 12.8% year on year)(Up 9.3% year on year) (Down 0.6 percentage points year on year)(Up 17.2% year on year) (Down 27.9% year on year)(Up 3.8% year on year) (Up 3.8% year on year)

410.5 (¥ billion)

45.7 (¥ billion)

141.0

218.83 (¥)(¥)(+¥23.1)*

Euro

135.5

(¥)
(+¥10.4)*

17.9 (%)

Free cash flow

Operating margin

EPS

17.0 (¥ billion)

19.8

Yuan

(¥)
(+¥2.3)*2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)IFRSJapanese GAAP

* Year on year R&D Expenses/
R&D Expenses as a Percentage of Net Sales

Japanese GAAP

SG&A expenses increased in line with the resumption ofsales and service activity in each region. That factor, theimpact of sharply higher raw materials costs, and yen
depreciation led to higher operating profit.

 ROE/ROA

42.0 billion

12.4%

¥

(Up 16.0% year on year) (Up 0.2 percentage points year on year)(Up 26.3% year on year)

Despite the impact of foreign exchange, operating profit
rose, lifting profit.

11.7% -2.1%

9.0%(Past 10 years) (Past 5 years)
SysmexCapital expenditure31.0(¥ billion)

IFRS Total Shareholder Return (TSR)(Annualized Rate)(Down 1.1 percentage (Down 0.7 percentage
points year on year)
points year on year)

R&D expenses

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)Japanese GAAP

Operating cash flow rose, due mainly to increases in
profit before tax and depreciation and amortization.
However, investing cash flow also rose, owing to theconversion of Sysmex Astrego to a subsidiary and DX
investments. Free cash flow decreased as a result.

 Capital Expenditure (including tangible and intangible)

¥

IFRS

Activity Report andCorporate Overview

31.0 billion 7.6%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)

11.7%

42.0 (¥ billion)

TOPIX

9.2%

TOPIX

7.6 (%)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)Japanese GAAPIFRS

These expenses grew due to ongoing investment inproduct development and higher costs related toregulatory affairs.

59 Sysmex Report 2023

5.7%

ROE

R&D expenses as a percentage of net sales

12.4 (%)
9.0 (%)

ROA

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)Japanese GAAPIFRSIn addition to DX investment, customer lease assets
grew as a result of a recovery in instrument demand.

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)Japanese GAAP

Sysmex-2.1%

Past 10 years

Past 5 years

IFRS

Although profit rose, increases in equity attributable toowners of the parent and assets caused ROE and ROA
to decrease.

Corporate GovernanceNet sales increased as expansion of the installed
instrument base pushed up sales of reagents,
particularly in the hematology field.

IFRS

Mid-Term Management Planand Initiatives

US dollar

Japanese GAAP

Profit attributable toowners of the parent

68.8 (¥ billion)

73.6 (¥ billion)

Sysmex’s Value Creation

Operating cash flow

Operating profit
Net sales

45.7 billion ¥218.83

About Sysmex

 Net Sales

 Profit Attributable to Owners of the Parent/
Basic Earnings per Share (EPS)

Although TSR was negative for the past five years due toa decline in the stock price, due to stable dividends TSR
has outpaced TOPIX over the past 10 years.

Sysmex Report 2023 60

Topics in Fiscal 2022
Here, we introduce key topics related to Sysmex’s business in fiscal 2022.

Non-Financial Performance Number of Employees (Consolidated)*/
Percentage of Overseas Employees

27,905t-CO 0.680t-CO /billion

10,522 61.3%

2(Up 24% year on year)
Scopes 1 and 2 greenhousegas emissions

27,905 (t-CO )Asia Pacific

Japan

1,084

4,073

2

China
Basic unit emissions

800

0.680 (t-CO /billion)

FY2022

2

2016

2017

2018

2019

2020

2021

 Percentage of female managers/
Percentage of next-generation female managers

23.7%* Including part-time employees and others

71%

8.7%
5.7%

(up 6.0 percentage points year on year)

72%

71%
65%*

Sysmex Corporation
Percentage offemale managers

10.1%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)

Continuous improvement of the work environment andthe establishment of a system to realize diverse work
styles have led to an increase in these percentages,
especially in the EMEA and Asia Pacific regions.

Analyzer

Single use sample
cartridge

Rapid antimicrobial
susceptibility testing system

Establishment of a Joint Venture with JCR Pharmaceuticals with a View to the Social
Implementation of Regenerative Medicine and Cell Therapy

66%*

10.6%

Since 2019, Sysmex has been working with Astrego Diagnostics
AB to develop products aimed at helping to address antimicrobial
resistance (AMR). In May 2022, we welcomed this company into
the Sysmex Group. In June 2023, we launched a rapid antimicrobial
susceptibility testing system that detects the presence or absence ofbacteria and assesses the effectiveness of antimicrobials using urine
samples. This system produces results in as little as 30 minutes, asignificant reduction compared to the several days required for conventional testing. This assists in the appropriate use of antimicrobials
during initial patient visits at clinics and other primary care settings.

 Engagement Score

Sysmex Group
Percentage offemale managers

19.5%

Sysmex Makes Astrego a Subsidiary with the Aim of Accelerating Clinical Implementation of
Rapid Antimicrobial Susceptibility Testing

In October 2022, Sysmex and JCR Pharmaceuticals Co., Ltd. formeda joint venture, AlliedCel Corporation, to conduct R&D and aim forthe early commercialization of regenerative medicine products using
stem cells. The venture will combine Sysmex’s quality control testing technologies and expertise in enhancing workflow efficiency with
JCR’s track record and knowhow in the development, manufacture,and sale of regenerative medicine products to develop new products
using hematopoietic stem cell proliferation technology and conduct
other technological development and commercialization efforts.

Insurance Coverage of Our Robotic-Assisted Surgery System
Extended to Gastroenterology and Gynecology
2017

2018

2019

2020

2021

2022 (FY)

Scores increased in all regions due to the promotion ofsafe and secure work measures during the COVID-19
pandemic.
* Figures exclude EMEA in fiscal 2020 and fiscal 2021.

In October 2022, Medicaroid Corporation, which Sysmex establishedwith joint investment from Kawasaki Heavy Industries, Ltd., obtained
approval to extend the scope of use of its robotic-assisted surgery
system to the gastroenterology and gynecology domains. Insurance
coverage for these areas was granted in December. These expanded
indications will enable clinical use in a wider range of areas, andMedicaroid plans to further accelerate market introduction.

Robotic-assisted surgery system* Excluding Russia

61 Sysmex Report 2023

Sysmex Report 2023 62

Activity Report andCorporate Overview

Sysmex Corporation
Percentage ofnext-generation
female managers

Employee numbers continued to rise in tandem with ourscale of business, such as our expanding direct sales
and service areas.

Corporate Governance

CO2 emissions rose substantially, due to an expanded
scope, but we are making steady progress on the switchfrom resource-based to renewable energy. (In fiscal
2022, the amount of energy consumption accounted
for by renewable energy was up 40% year on year.)

Reagents

1,508

3,057

2022 (FY)In December 2022, Sysmex received manufacturing and marketing
approval in Japan for an assay kit to identify amyloid beta accumulation in the brain, a cause of Alzheimer’s disease, using a small amountof blood. As this project allows testing using blood, it reduces thephysical, emotional, and financial burden on patients. Furthermore,
the product is expected to contribute to early diagnosis and early
determination of optimal treatment plans for patients. Sales in Japan
commenced in June 2023, and in August we began supplying the
product as an LDT test reagent to a large commercial lab in the
United States.

Mid-Term Management Planand Initiatives

Americas

EMEA

Received Manufacturing and Marketing Approval for a Reagent to Test for Alzheimer’s Disease

Sysmex’s Value Creation(Up 40% year on year)2

Through an alliance that has lasted more than 25 years, Siemens Healthineers and Sysmex have conducted sales andoffered services in each other’s regions. As a result, our two companies have together acquired the No. 1 global shareof the market in the hemostasis field. In February 2023, we signed a new global OEM agreement that enables us tomutually supply instruments and reagents, as well as selling products globally under our own brands. Under this agreement, Sysmex will expand its direct sales, service, and support offerings in Europe, the Americas, and other regions.

About Sysmex

 Scopes 1 and 2 Greenhouse Gas Emissions/
Basic Unit Emissions

Sysmex Enters an Agreement with Siemens Healthineers in the Hemostasis Field, Expanding Its
Sales Region

Status of Sustainability Targets
Materiality

KPI1

Number of cases withsurgical robots

Resolution of
medical issues
Number of patents
through innovation

Number of new patents

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

—

—

—

—

—

2,971
million

2,977
million

—

—

52.7%

53.8%

54.7%

55.6%

54.6%554.0%

Number of cases using hinotori

—

—

—

—

—

—

—

1,323

Total number of patents, utility modelrights and design rights obtained

—

—

2,709

2,987

3,143

3,485

3,680

3,832

Total number of patents, utility modelrights and design rights applied for

—

—

301

346

306

287

298

257

—

—

—

—

—

1.6
thousand1.6
thousand1.7
thousand

—

—

—

—

—

46
thousand54
thousand52
thousandFiscal 2023

Fiscal 2025

Number of CBC tests(based on the number of reagents)
Percentage of consolidated sales to the market size of instruments, reagents, and services in a single year in the field of hematology—

Number of cancer geNumber of cancer genomes analyzed bynomes analyzed3
the NCC OncoPanel
Number of breast cancer
Number of breast cancer tests using thetests using the OSNA
OSNA method
methodSales in emerging anddeveloping markets

Consolidated sales in emerging anddeveloping markets

—

—

—

—

—

¥122.0billion¥143.0billion¥156.7billion

—

—

—

—

—

—

4

2

2

Number of FDA
warning letters

Number of FDA warning letters issued
to Sysmex

—

—

—

—

—

0

0

0

CSR survey response
Percentage of raw material suppliers thatrate (primary suppliers in responded to CSR surveys (primary supJapan and overseas)pliers in Japan and overseas)

90%

90%

81%

84%

85%

89%

90%

94%

Number of briefings, training, and other
Number of training sestraining sessions for domestic suppliers
sions for suppliers (Japan)4(single year)

6

5

—

—

—

2

5

5

Third-party certification
rate of suppliers(primary, Japan)4

Percentage of primary raw material suppliers (domestic) obtaining third-party certification for manufacturing or product quality

—

—

—

—

—

86%

88%

86%

Zero product loss

Unused disposal rate of in-house manufactured goods, raw materials and spareparts (cost/sales percentage)

—

0.18%

Less than
0.1%

—

—

—

—

—

—

—

60.0%

100%

—

—

—

—

—

—

—

Cut 10%Cut 35%

—

—

—

—

—

—

Cut 20%——

Cut 12%

Cut 10%Cut 2%

Cut 8%Cut 22%

Cut 27%

Cut 10%——

Cut 8%Cut 2%

Cut 4%Cut 6%

Cut 13%

Cut 7%Cut 20%——

Cut 17%Up 1%

Cut 17%

Cut 25%

Cut 1%Cut 25%

—

—

—

—

—

—

Cut 4%Up 9%

Cut 7%

Pursuit of quality
and trustStrengthening
supply chain
management

Resource
circulation in
product life cycle

Recycling of containers
Rate of recycled or environmentally conand packing and utilizascious materials used in containers andtion of environment
packaging/labeling materials
compliance materials
Reduction of greenhouse Percentage of reduction of greenhouse gas emisgas emissions (Scope 3) sions (Scope 3) with FY2022 as the base year
Reduction of CO2 emis- Reduction rate of CO2 emissions per instrusions (instruments)
ment unit with FY2016 as the base year
Reduction of water con- Reduction rate of waster discharge per insumption (instruments) strument unit with FY2016 as the base year
Reduction rate of CO2 emissions generReduction of CO2 emisated by shipping per non-consolidated
sions (shipping)sales unit with FY2016 as the base year
Reduction of packaging Percentage reduction of total packaging
and labeling materials
material weight with FY2019 at the base year

The sales in emerging and developing markets increased by more than 10 billion yen from the previous fiscal year partially because we bolstered ourmarketing and service provision structure in Brazil,
Saudi Arabia and other emerging countries. We
will work to improve healthcare access and quality
in emerging and developing countries, continuingcooperation with international organizations, such as
the WHO and JICA.
In fiscal 2022, we had only two recalls, the same
number as the previous fiscal year, without receiving any health hazard reports, and received no FDA
warning letters, as in the previous fiscal year.
We successfully prevent defective products fromentering the market by establishing a system that
ensures compliance with the regulations of eachcountry, conducting regular quality audits, timely
collecting information from the market through ourglobal quality complaint handling system, and thoroughly investigating the causes of defective products. We will continue our efforts to maintain andimprove the safety and quality of our products.
The CSR survey response rate for fiscal 2022 was
94%, higher than the rate for the previous fiscal year.
As part of our follow-up, we urged suppliers to identify low-score items and high-risk items and makenecessary improvements based on the results ofthe previous year’s CSR survey. We held five training
sessions for suppliers as in the previous fiscal year.
In fiscal 2022, we held BCP training sessions andseminars on promotion of sustainability and green
procurement, in which a total of 431 business partners participated. We will continue to strengthen our
relationship with business partners.
The reduction rate of CO2 emissions per instrument
further improved in fiscal 2022 from the previous
fiscal year (by 5 percentage points).This reduction
was mainly due to increased sales of power-saving
products and global improvement in our CO2 emissions coefficient. The reduction rate of CO2 emissions generated by shipping in fiscal 2022 improvedby 24 percent points from the previous fiscal year.
We promoted supply management replacing airtransport with sea transport.
As new targets to achieve Sysmex Eco-Vision 2033,
we have set “zero product losses,” “complete switch
to recycled or environmentally conscious materials,”and “reduction of GHG emissions (Scope 3).” We willfind innovative solutions toward a circular-oriented society in cooperation with our stakeholders by pursuinggreen innovation and leveraging our unique strengths.

1. The shaded KPIs were added in April 2023. The items whose targets are displayed as “—” are monitoring items for which no targets are set.
2. Source: Clearstate and Sysmex estimates
3. Target: Sysmex Group in Japan
4. Target: Sysmex Corporation on a non-consolidated basis
5. The figure disclosed in the previous fiscal year has been revised due to a change in the calculation method.

63 Sysmex Report 2023

Sysmex Report 2023 64

Activity Report andCorporate Overview

Reducing environmental impacts

Number of voluntary recalls/repairs for
products sold (instruments and reagents)

The market share in fiscal 2022 remained at thesame level as the previous fiscal year, due to Chinese
government’s procurement policy and restrictions
to control the COVID-19 pandemic, though reagent
sales grew in each region due to an increase in installed instruments, and new high-end models enjoying brisk sales in Japan.
The number of cancer genomes analyzed and thenumber of breast cancer tests using the OSNA
method also remained at the same level as theprevious fiscal year.
The number of patents held and patent applications
have been steady, in line with our business performance.
Adding the number of hematology tests and thenumber of surgeries performed using our roboticassisted surgery system, we will monitor the impact
on society of our existing diagnostics business andour new medical robotics business.

Corporate Governance

Providing responsible products, services,and solutions

Number of recalls

Progress and Future Initiatives

Mid-Term Management Planand Initiatives

Improvement inaccessibility tohealthcare(Eco-Vision)

Sysmex’s Value Creation

Creating new value for a healthy society

Hematology market
share2

Results
Fiscal 2033

About Sysmex

Number of hematology
tests

TargetMateriality

KPI1

Percentage reduction of CO2 emissions
Reduction of CO2 emis- generated from business activities per
sions (business activities) consolidated sales with FY2016 at thebase year—

Cut 40%Cut 55%

—

—

—

—

—

—

Cut 40%——

Cut 14%

Cut 17%

Cut 35%

Cut 35%

Cut 44%

Cut 55%

—

—

—

—

—

—

(Eco-Vision)

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Percentage of using renewable energy—

75%

90% orhigherReduction of using
energy per employee

Percentage of reduction of using energy per
employee with FY2022 as the base year—

Cut 3%

—

—

—

—

—

—

—

Percentage of reduction of water conReduction of water
sumption per production of reagents with
consumption(main reagent factories) FY2022 as the base year—

Cut 23pt

Cut 90pt

—

—

—

—

—

—

Percentage reduction of water consumption from business activities per consolidated sales with FY2016 at the base year

Cut 5%——

Cut 8%Cut 7%Up 6%

Cut 7%

Cut 19%Cut 37%

Recycling rate

Resources recycled per total waste
generated

85% orhigher

—

—

89%

76%

67%

78%

79%

80%

Cut 10%Cut 5%

Cut 15%———

Cut 8%

Cut 15%

Cut 27%

—

—

—

—

0.6%

0.6%

0.5%

Ratio of products waste caused by expiry
and other reasons to consolidated sales——

Number of meetings
with investors andanalysts3

Number of meetings with institutional
investors and securities analysts

—

—

—

—

—

506

485

597

Number of internalreports

Number of internal reports of incidents
received

—

—

32

14

11

12

28

21

Number of unethicalincidents

Total number of incidents in which theviolations the law were found, and disciplinary actions were taken for the violation of the Global Compliance Code

—

—

—

9

7

5

14

9

Number of information
security trainees4

Number of participants in information
security training (gross)

—

—

—

—

—

2,720

3,601

4,900

Participation rate indisaster drills4

Percentage of participants in training
using safety confirmation tool assuming
a disaster, etc. (including employees onlong-term leave)

—

—

—

—

—

98.7%

98.7%

99.4%

—

Risk management

Sysmex Eco-Vision 2033, starting in fiscal 2023,
has set a target reduction rate of CO2 emissions formore business offices than those covered by theprevious vision, as well as has introduced the reduction rate of energy use per employee and the ratio ofrenewable energy as new targets to raise each employee’s environmental awareness, reinforcing ourefforts to achieve carbon neutrality.
The rate of reduction in water consumption and therate of reduction in total waste (for the business sites
covered by Sysmex Eco-Vision 2025) in fiscal 2022
improved from the previous fiscal year by 18 percentage points and by 12 percentage points, respectively, due to increased sales.
As a water consumption reduction target, we have
newly introduced the reduction of water consumption at main reagent factories, taking into accountfactors such as the uneven geographical distributionof water risks and the fact that the water consumption of product use is affected by our product portfolio more than by product improvement.
To achieve the targets of Sysmex Eco-Vision 2033,
we will work on the reduction of water consumption
by reviewing production processes of each businesssite and introducing new equipment for more efficient water use, as well as by using recycled water.
The waning impact of the COVID-19 pandemic increased in-person meetings, including visits by overseas investors to Japan and overseas briefings. We effectively utilized conferences hosted by securities firms
and other opportunities to hold individual and groupmeetings with a wide array of investors. Consequently,
the number of companies we met with increased bymore than 100 from the previous fiscal year.
In fiscal 2022, we had nine unethical incidents, none ofwhich was a serious violation. A total of 21 internal reports were received in Japan and from overseas. We
investigated and appropriately handled each incident.
Considering training and awareness-raising activities
for employees as the foundation for promoting andensuring compliance, we will continue to provide
periodic training opportunities for employees to ensure that they will act in accordance with the Global
Compliance Code.
In fiscal 2022, we conducted online cyber security
training in multiple languages for all our Group employees as well as temporary employees and independent contractors. We also provided training inhandling of spear phishing (BEC and phishing scams)
and held seminars on handling of emails to raise
employees’ awareness of information security.
We will continue to conduct regular employee training and strengthen the Group's information security
management system.
In fiscal 2022, we conducted disaster drills and training.
We will continue to enhance our response to risks
associated with business continuity by conducting regular drills and training, introducing a system
to check employees’ safety and creating rules andmanuals related to disaster response.

1. The shaded KPIs were added in April 2023. The items whose targets are displayed as “—” are monitoring items for which no targets are set.
2. Fiscal year for comparison: Fiscal 2019 for the fiscal 2023 targets and the results of each fiscal year, and fiscal 2022 for the fiscal 2025 and fiscal 2033 targets
3. Target: Sysmex Corporation on a non-consolidated basis
4. Target: Sysmex Group in Japan

65 Sysmex Report 2023

Sysmex Report 2023 66

Activity Report andCorporate Overview

Ratio of product waste
to salesThe reduction rate of CO2 emissions generated bybusiness activities (at the business offices covered
by Sysmex Eco-Vision 2025) in fiscal 2022 improvedby 11 percentage points from the previous fiscal year.
This substantial reduction was attributable to theprogress of our switch to renewable energy.

Corporate Governance

Reduction of water
consumption (businessactivities)

Progress and Future Initiatives

Mid-Term Management Planand Initiatives

Strengthening governanceCompliance

Fiscal 2025

Ratio of renewableenergyPercentage of reduction waste generated
Reduction of total waste by business activities per consolidated
sales2

Corporate
governanceFiscal 2023

Sysmex’s Value Creation

Reducing environmental impacts

Reduction inenvironmental
burden throughbusiness activities

Results
Fiscal 2033

About Sysmex

Reduction of greenhouse
Reduction rate of GHG emissions
gas emissions (Scopes(Scope 1, 2) from fiscal 2022
1, 2)

TargetMateriality

KPI1

TargetFiscal 2025

75%

75%

Percentage of positive responses to engagement in the corporate culture survey

Turnover ratio

Turnover rate of regular employees (Ratio
for people who have left the organization
10% or less 10% or lessfor any reason, including layoffs, job cuts,
job changes, retirement age, etc.)

Self-turnover rate

Annual retirement rate for personal reasons

Return rate from parental
Return to work after parental leave
leave2

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

72%

—

—

—

—

10.1%4

7.5%4

10.9%4

8.4%

66%
65%
(except EMEA) (except EMEA)

Fiscal 2022

71%

—

—

—

—

—

6.8%

—

—

—

—

—

—

—

100%

—

—

—

31%4

53%4

62%

15.2%

15.2%

15.5%

16.2%

17.3%

19.5%
(except Russia)
32.1%

Increased
engagement

Creating an attractive workplace

Percentage of male employees (including
part-time workers) taking childcare leave
after their spouse bears a child

60% orhigher

65% orhigherFemale managers ratio

Ratio of women at director level or above

20% orhigher

20% orhigher

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Female next generation Percentage of women in the manager
managers ratio
position in the Sysmex Group
Female associates, em- Female employees ratio in the Sysmex
ployees ratio
Group
Percentage of mid-career Percentage of mid-career recruitment
recruitment in managerial employees in managerial and professional
and professional positions2 positions
Male/female percentage
Female ratio in new graduates recruitamong recruits (new gradment, mid-career recruitmentuates and mid-career)2
Percentage of women
Ratio of women in the managements,
and non-Japanese naratio of foreigners in the managements
2tionals in management
Percentage of women in Ratio of women in management of groupmanagementcompanies including the head office
Salary inequality in
Gender ratio in average total compensamanagerial and profestion value (managerial and professionalsional positions (total
positions)
2compensation)
Salary inequality genGender ratio in average total compensaeral employees (totaltion value (general employees)
compensation)2

Percentage of employees with disabilities3

Percentage of employees with physical,
intellectual, or mental disabilities

2.35% orhigher

2.65% orhigher

—

2.04%

2.21%

2.30%

2.30%

2.31%

The female managers ratio in fiscal 2022 increasedby 2.2 percentage points from the previous fiscal
year. Factors in this increase include the appointment of more women as successors to key posi41.7%
tions, including positions on the management teamin the Asia Pacific region, the early promotion of
Newly graduated: women to management positions in EMEA, and an
35.9%
increase of female managers due to diversified caMid-career: 27.0% reer options resulting from the reform of the personWomen: 8.3% nel system in Japan.
Non-Japanese: 16.7% We will use the percentage of women and nonJapanese nationals in management, and the wage
differentials between male and female employees,
9.4%
along with other indicators, as new indicators formonitoring, while creating a working environment
93:100 that allows employees to work in diverse work styles
and providing diversity education.

41.8%

80:1002.31%

Although the number of employees with disabilities
increased (mainly at Sysmex Harmony Co., Ltd., a special
subsidiary of Sysmex), the percentage of employees withdisabilities remained at the same level due to the increase
in total employees resulting from our business expansion.
We will continue to create and identify tasks suitable for
persons with disabilities and consolidate such tasks toprovide more employment opportunities to those withdisabilities. We will also remain committed to creating roles
and a working environment that enable every employeeswith disabilities to use their unique traits as strengths.

1. The shaded KPIs were added in April 2023. The items whose targets are displayed as “—” are monitoring items for which no targets are set.
2. Target: Sysmex Corporation on a non-consolidated basis
3. Target: Sysmex Group in Japan
4. The figure disclosed in the previous fiscal year has been revised due to a change in the calculation method.

67 Sysmex Report 2023

Sysmex Report 2023 68

Activity Report andCorporate Overview

Promotion ofdiversity, equity &inclusion

Percentage of men taking childcare leave2

Corporate Governance—

The Group’s engagement index of employees forfiscal 2022 rose by 6 percentage points from theprevious fiscal year to 71%, matching the average
engagement score of Fortune 500 companies. Highengagement is a key driver of the Group’s growth.
Our activities to instill the Sysmex Way in employees,
and safety measures and work style arrangements
during the COVID-19 pandemic, have boosted employee engagement in each region, achieving a 3
percentage point increase in China. The turnoverrate for fiscal 2022 dropped by 2.5 percentage
points from the previous fiscal year as a result of ourinitiatives to enhance human resource development
and review compensation systems in each region.
We will continue to improve employee engagement
by recruiting and training talented people, creating
a comfortable working environment and promoting
labor-management dialogues.
The percentage of men taking childcare leave in fiscal
2022 increased by 9 percentage points from the previous fiscal year. This significant increase was attributableto our various initiatives: setting targets in our actionplans under the Act on Advancement of Measures to
Support Raising Next-Generation Children and the Act
on the Promotion of Women’s Active Engagement inProfessional Life, helping employees balance parenting
and work, conducting continuous awareness-raising
activities to establish a comfortable working environment (holding round-table discussions for all domestic
employees and conducting seminars by internal andexternal lecturers and creating a guidebook for male
employees), encouraging managers to understandvarious work styles, and changing employees’ awareness of working styles by introducing the smart work
system. We will continue to take actions to increase
male employees taking childcare leave.

Mid-Term Management Planand Initiatives—

Progress and Future Initiatives

Sysmex’s Value Creation

Engagement score(Eco-Vision)

About Sysmex

Fiscal 2023

Results
Fiscal 2033

Materiality

KPI1

Total annual hours worked per regular
employee

40.0 hours 40.0 hours

Fiscal 2017

Fiscal 2018

Fiscal 2019

—

—

—

Fiscal 2020

Fiscal 2021

Fiscal 2022

24.5 hours 31.4 hours 30.0 hours

—

—

—

—

—

—

—

¥13,230¥19.38million¥22.50
million

—

—

—

—

—

¥18.74
million¥234
million¥252
million

—

—

—

—

—

¥266
million

—

—

—

—

—

—

—

¥356
million90% orhigher

90% orhigher

—

—

—

—

—

100%

—

—

—

—

—

—

—

100%

—

—

—

—

—

—

—

100%

—

—

—

—

—

—

—

218.9%

2,000
hours

1,980
hours

—

—

—

2,030
hours

2,045
hours

2,022
hours

—

Percentage of days of
paid leave taken3

Percentage of days of annual paid leave
taken per regular employee

70% orhigher

75% orhigher

—

—

—

61.3%

62.4%

66.5%

Lost-term injuries frequency rate3

Number of employee death or injuries
resulting from work-related accidents per
million hours actually worked

Less than
0.5

Less than
0.5

—

—

—

0.78

0.91

0.81

Lost work days rate3

Number of days absent from work due
to work-related injuries per 1,000 hours
actually worked

Less than
0.05

Less than
0.05

—

—

—

0.05

0.04

0.05

The training time per employee in fiscal 2022 decreased by 1.4 hours from the previous fiscal year
(95.5% of the training time per employee in theprevious fiscal year). On the other hand, our Group
companies in Japan achieved a 100% training participation rate and invested 92,000 yen in training
per employee.
We will promote the development of human resources, including next-generation global leaders,by adding value-added productivity, investment in
human resource training, the rate of participationin training, and other indicators to the monitored
items, and by setting the rate of internal transfers to
new positions .

The annual working hours in fiscal 2022 decreased by
23 hours from the previous fiscal year. The main factors in this decrease include alleviated staff shortages
as a result of aggressive recruiting activities, coupledwith innovation and business structure transformation efforts, reduced overtime hours resulting from ashift to more efficient work styles through the adoption of value-added productivity indicators, and anincrease in the number of paid leave days taken.
We will continue to reduce working hours by optimizing assignment through enhanced recruitment
efforts and actively conducting training and awareness-raising activities for employees in cooperation
with the labor union.
The percentage of days of paid leave taken in fiscal
2022 increased by 4.1 percentage points from theprevious fiscal year. To increase use of paid leave, we
set recommended dates for paid leave, shared paid
leave days actually taken by each employee with
their department heads, and actively encouraged
employees to take paid leave.
For fiscal 2023, we have introduced a target percentage
of days of paid leave taken. To increase the percentage,
we will improve productivity as well as raise employees’
awareness of the benefits of taking paid leave.
The lost-time injury frequency rate and the lost workdays rate for fiscal 2022 decreased by 0.1 percentage points and increased by 0.01 percentage points,
respectively.
There were six work-related accidents, including
injuries in factories (seven accidents in the previous
fiscal year). As a measure to reduce work-related accidents, employment health advisors gave employees guidance about how to prevent injuries.
We will continue to bolster and enhance our workplace safety and health management system under
the leadership of the Central Health and Safety
Committee, which supervises our Group companies
in Japan. In the event of a work-related accident, theHealth and Safety Committee of the business site
involved will investigate the causes, take necessary
actions, and share the causes and actions within theGroup to prevent its recurrence.

1. The shaded KPIs were added in April 2023. The items whose targets are displayed as “—” are monitoring items for which no targets are set.
2. Target: Sysmex Corporation on a non-consolidated basis
3. Target: Sysmex Group in Japan

69 Sysmex Report 2023

Sysmex Report 2023 70

Activity Report andCorporate Overview

Promotion ofhealth and occupational safety

Progress and Future Initiatives

Corporate Governance

Creating an attractive workplace

Total annual working
hours3(Eco-Vision)

Mid-Term Management Planand Initiatives

Value-added productivity
Value added per time(non-consolidated)2
Value-added productivity
Value added per capita(Group)Human resources deTotal investment in human resources
velopment investment
development and training
2(non-consolidated)
Human resources deTotal investment in human resources
velopment investment
development and training(Group)Total number of associates who took
Participation rate in traintraining each year divided by total num2
ing (non-consolidated)
ber of employees
Total number of associates who took
Participation rate in traintraining each year divided by total numing (Group)
ber of employees
Success plan effectiveRate of transfer to key positions
ness rate2
Succession coverage
Percentage of key positions that have a
rate2
successor candidate

Fiscal 2025

Sysmex’s Value Creation

Development of
human resources

Average training time per employee fortraining provided by HR and each division(including online training)

Fiscal 2023

Results
Fiscal 2033

About Sysmex

Training time per
employeeTargetStakeholder Engagement

About Sysmex

Sysmex works alongside its business partners and employees to provide products and services to
medical institutions and other customers in an effort to resolve medical issues.
Going forward, through proactive dialogue with stakeholders, we strive to forge better relations.
In addition, by incorporating their expectations and requirements into our business activities, wewill enhance the effectiveness of our strategy and strive to realize a sustainable society.
Major Stakeholders
Stakeholders described outside the circle are categorizedaccording to our Shared Values. >>P6

Patients, health examinees, etc.

Community Medical institutions
and society and commercial labs

Society(including NPOs)
More than 8.0 billion
people aroundthe worldMore than 190
countries and regions

Shareholders
Shareholders

Approximately
16,000

Employees

Employees>>Sysmex Sustainability Data Book 2023> Strengthening of Supply Chain Management P36

Joint researchand development
partners
Suppliers
Approximately 250
companies(Key Tier 1 suppliers)

Business
Partners

Shareholders(As of the end of fiscal 2022)>>Status of Sustainability Targets P63 >>Sysmex Sustainability Data Book 2023> Stakeholder Engagement P18

Customers

We engage in ongoing communication through sales and service and support activities, with the aim of instilling confidence in our customers and providing added value that exceeds their expectations. As a result, weearn high marks in customer satisfaction surveys.
 Established a 24/7 customer support center (separate contract required) Conducted customer satisfaction surveys
 Gathered feedback through VOC (Voice of the Customer), utilized in product development and quality
improvements
 Convened user meetings to communicate accurate product knowledge
 Held online scientific seminars (hybrid online/at-venue format)

In Sysmex’s aim to achieve sustainable growth, in addition to recruiting, developing, and deploying humanresources tied to the Long-Term Corporate Strategy 2033, it is essential to promote DE&I and create an attractive workplace that is easy and rewarding to work in. We have set the engagement score on our corporate
culture survey, as one of our sustainability targets, and we are undertaking initiatives to achieve this target.
 Conducted corporate culture surveys (dialogues according to the results of the engagement score) Promoted the corporate philosophy of the Sysmex Group and introduced an internal award system Configured a global internal reporting system >>Sysmex Sustainability Data Book 2023>Compliance P79
 Held council meetings between labor and management

We liaise and engage in dialogue with government agencies andinternational organizations with a view to the development ofhealthcare and the realization of a sustainable society. In addition,
we communicate with society at large through activities aimed atmeeting the needs of communities around the world, based on
our Policy on Corporate Citizenship Activities and Philanthropy.
 Collaborated with government agencies and international organizations
 Participated in industry groups Engaged in Group corporate citizenship programs, including
the Sysmex Gives Back Campaign (such as employee blood
donations, environmental activities, helping to eradicate cancer, and support for pediatric patients and orphans, etc.) Supported activities in various regions in relation to the spreadof COVID-19>>Human Capital Strategy P53 >>Sysmex Sustainability Data Book 2023> Realization of an Attractive Workplace P38>>Sysmex Sustainability Data Book 2023> Corporate Citizenship Activities P55>>Customer Assessment in the United States P106>>Sysmex Sustainability Data Book 2023> Responsible Provision of Products, Services and Solutions P29

Employees

71 Sysmex Report 2023

Society

Meetings with institutional
investors and analysts

Approx. 590 per year

Activity Report andCorporate Overview

Main Dialogue with Stakeholders (Fiscal 2022)

Sysmex recognizes that IR activities are important to achieving
sustainable growth and medium- to long-term increases in corporate value. We strive to disclose information proactively and quickly
share internally the evaluations and requests that we receive in thecourse of dialogues with shareholders and investors, and to reflect
this information in our management and IR activities. As in the previous fiscal year, opportunities for dialogues with global investors
increased significantly due to the use of online communications.
	Holding of the Ordinary General Meeting of Shareholders• Voting rights executed in writing or via the Internet
 Information disclosure• Proactively disclosed voluntary information such as operating
performance by destination, type of business, and product type
 Dialogues with institutional investors and analysts• Held business results briefings and conference calls• Held IR meetings: Sysmex management visited the Americas,
Europe, and Tokyo to engage in dialogues related to our longterm management goals, mid-term management plan, business model, R&D, shareholder returns, ESG, and other topics.
• Holding of IR events: Each year we hold a technology presentation, in which people in charge of R&D divisions provide explanations about R&D progress. In addition, to foster a deeper
understanding of our management strategy and business activities, we conducted facility tours and tours of offices in Japanand overseas. (postponed in fiscal 2022 due to COVID-19)• We provide English-language materials, including scripts, ateach event.
● Dialogues with individual shareholders• Provided information through our shareholder newsletter and website• Held business office tours (suspended in fiscal 2022 due to COVID-19)

Corporate GovernanceMore than 600
companies

94%

More than 10,000

More than 200
themesDistributors

CSR survey response rate
(primary suppliers of raw materials)

Mid-Term Management Planand Initiatives

Governments
and public bodies

More than 190
countries andregions

We maintain ongoing dialogues to foster an understanding
among business partners of Sysmex’s business direction and policies, as well as to build trust-based relationships. For suppliers,
we are strengthening communication to realize a circular society,as well as establishing supply chain management in accordancewith our procurement policy.
 Communication through open innovation and alliances with
R&D partners
 Communication based on procurement policies
 Conducting CSR surveys of suppliers Holding meetings with sales distributors and visiting

Sysmex’s Value Creation

Customers

Business
Partners

Employees participating in Group
corporate citizenship programsMore than 7,000 per year

Sysmex Report 2023 72