Financial Overview

Management’s Discussion and Analysis

product development and higher costs related to regulatory affairs. R&D expenses as a percentage of net sales

Operating Results versus Forecasts andthe Outlook for Fiscal 2023

lio of locally manufactured products in China. We anticipate higher sales and profit as a result. For fiscal 2023,

were 7.6% (up 0.2 percentage point).

In fiscal 2022, Sysmex was affected by the growing

robotics business. In addition, we will expand our portfo-

we forecast net sales of ¥460.0 billion, an operating

sharply higher costs on a various items stemming fromtargets of ¥420.0 billion in net sales and ¥80.0 billion in

profit of ¥83.0 billion, profit before tax of ¥78.0 billion,

geopolitical and other issues. However, demand forthe cost of sales ratio to improve. The operating margin

operating profit by fiscal 2023, with numerical targets inand profit attributable to owners of the parent of ¥52.0

testing rebounded and the installed instrument basecame to 17.9% (down 0.6 percentage point). Exchange

fiscal 2022 of ¥420.0 billion in net sales and ¥77.0 bil-billion. Our calculations assume full-year exchange rates

rose, leading to higher sales of reagents, particularly

rates had a ¥16.9 billion positive impact on operating

lion in operating profit. Although net sales and operatingof ¥133 per U.S. dollar, ¥143 per euro and ¥19.2 perin the hematology, urinalysis, hemostasis, and immu-

profit compared to the preceding fiscal year.

profit both rose year on year, they were below forecast,yuan. Our forecast is based on currently available infor-

affected by an increase in COVID-19 infections in China.

mation; actual results may differ for a variety of reasons.

In fiscal 2023, we expect the external environment

In April 2023, Sysmex commenced a new mid-term

Operating profit grew by ¥6.2 billion (up 9.3%) to

Profit before tax rose ¥4.3 billion (up 6.8%) to ¥68.7

nochemistry fields. These factors, plus yen apprecia12.8%), to ¥410.5 billion. Foreign exchange rates had thea foreign exchange loss of ¥1.3 billion. (In the previous

to be marked by a resurgence of testing demand andmanagement plan (from fiscal 2023 to fiscal 2025). By

effect of raising net sales by ¥38.89 billion compared

year, the Company recorded a foreign exchange gain ofa rebound of investment in medical infrastructure. We

promoting key actions during this period, we aim towith the previous fiscal year.

¥0.8 billion.) Profit attributable to owners of the parent

expect testing demand to remain at a high level, cen-achieve sustainable growth and strengthen the man-Cost of sales improved, as reagents accounted for arose ¥1.6 billion (up 3.8%) year on year to ¥45.7 billion,

tered on emerging markets. Against this backdrop, weagement foundation to support it.

larger proportion of net sales, owing to increased num-

due to such factors as a year-on-year rise in income tax

plan a global rollout of new products in the hematology>>Mid-Term Management Plan Targets P41

ber of instruments instaled through the previous fiscal

expenses of ¥2.7 billion (up 13.4%) to ¥22.9 billion.

field, and expect to accelerate our launch in the medical

year, but we were negatively affected by soaring raw
material and transportation costs. As a result, the cost

For details on the operating environment, please see the
Message from the Group CEO on page 18

of sales ratio was 47.4% (down 0.2 percentage point).

 Exchange Rates

2019

2020

2021

2022

1USD

110.9

108.7

106.1

112.4

135.5

1EUR

128.4

120.8

123.7

130.6

141.0

1CNY

16.5

15.6

15.7

17.5

19.8

Expenses rose due to the recommencement of sales
and service activities, as well as to reinforcement of ourdirect sales structure. We also saw an increase in expenses related to in-house digitalization.
R&D expenses grew ¥4.2 billion year on year (up

(Yen)

2018

(FY)

Corporate Governance

Selling, general and administrative (SG&A) expenses expanded ¥18.1 billion (up 19.2%), to ¥112.3 billion.

Mid-Term Management Planand Initiatives

tion, pushed net sales up ¥46.7 billion year on year (upbillion, buoyed by higher operating profit, and despite

Sysmex’s Value Creation

Sysmex’s previous mid-term management plan set¥73.6 billion, as higher sales and yen depreciation caused

number of COVID-19 infections in China, as well as

About Sysmex

Operating Performance

16.0%), to ¥31.0 billion, owing to ongoing investments in Operating Profit
 Operating Margin
Operating profit
Operating margin

410.5(¥ billion)

293.5

 Reasons for Changes in Net Sales (by Destination)

 Reasons for Changes in Operating Profit(¥ billion)(¥ billion)

Profit attributable to owners of the parent
Return on equity (ROE)

73.6(¥ billion)

363.7
301.9

 Profit Attributable to Owners of the Parent
 Return on equity (ROE)

67.4

44.0

45.7 (¥ billion)

Americas
22.2

41.2

EMEA
9.8

China
3.5

AP
6.8

34.8

55.2

31.9

410.5

20.9
18.3

16.4

18.5

17.9 (%)

2019

2020

2021

2022
(FY)

89 Sysmex Report 2023

2018

2019

2020

2021

2022

(FY)

67.41

16.3
12.9

2018

2019

10.9

2020

FX impact
16.91

Other
operatingincome
3.07

61.2

305.0

50.0

2018

Japan
4.2

Change inthe cost ofHigher gross sales ratio
profit on(4.55)
increased sales
4.10

13.5

2021

12.4 (%)

2022

(FY)

363.7

Fiscal 2021

Higher
SG&A
expenses(9.00)
R&D expense
increase(4.27)

73.67+¥6.26 billion+¥46.7 billion

Fiscal 2022

Fiscal 2021

Fiscal 2022

Sysmex Report 2023 90

Activity Report andCorporate Overview

 Net Sales

FCM

105.9 (¥ billion)
83.6

70.5

71.0

65.8

Life science
2.8%

Urinalysis 0.6%
11.4%
Hemostasis
2.7%

Others0.7%

Central andSouth America
9.7%
Canada4.2%

Sales byBusiness
2018

2019

2020

2021

101.5
75.6

77.2

111.3

82.1

Life science
9.0%(¥ billion)

2019

2020

2021

China
78.2

80.0

83.8

2019

2020

2021

25.0

26.9

EasternEurope andRussia
10.4%

Sales byBusiness

Hemostasis
38.9%

Hematology
38.0%

FCM

Life science
0.3%
Others2.9%

3.4%
Immunochemistry
3.3%
Urinalysis
8.2%

 Americas  EMEA  China  AP  Japan

Sales byArea

Life science
0.1%

36.4 (¥ billion) 0.8% Clinical chemistry
24.4

Five majorcountries
43.5%

FCM
0.3%

Immunochemistry
12.1%

29.6

Others3.6%

Other partsof Europe
28.9%

96.9(¥ billion) 1.1%

2022
(FY)

Middle East
and Africa
13.6%

Taiwan, South Korea,
Mongolia
30.3%

Southeast
Asia
41.9%

Sales byArea

Sales byBusiness(¥ billion)

500

2018

2019

2020

410.5

400

105.9

Japan

300

55.6
111.3

200

184.5
39.9

11.5%

48.7

2014

2015

2016

2017

2018

2019
IFRS

2020

2021

2022
(FY)

Clinicalchemistry
1.8%

2018

2019

2020

Hematology
67.9%

2021

2022
(FY)

Immunochemistry
17.7%
Urinalysis
5.4%

Oceania
7.5%South Asia
20.3%

Others
8.4% Medical robotics business
3.9%

FCM
0.2%

59.8

Japanese GAAP

91 Sysmex Report 2023

46.7

Hemostasis
13.2%

59.8(¥ billion) Life science

36.4

36.2
14.6
40.3
2013

44.0

2022
(FY)

96.9

53.3

100

0

2021

Sales byBusiness
Hematology
33.9%
Hemostasis
17.2%

Sysmex Report 2023 92

Activity Report andCorporate Overview

Asia Pacific

Hematology
65.4%

Sales byBusiness

Clinical chemistry
93.3

Sales by
Area

2022
(FY)

Urinalysis
9.5%

2018

Others
8.8%

FCM
0.8%
Urinalysis
5.9%
Hemostasis
10.1%

2018

UnitedStates83.8%

Hematology
81.8%

2022
(FY)

EMEA

Others2.3%

Corporate Governance Net Sales by Destination

 Net Sales

Americas

Mid-Term Management Planand Initiatives

knockdown production method, applying a product supply scheme to meet market characteristics, and increasing the number of products that use this scheme. In
fiscal 2022, a rise in COVID-19 infections and the impact
of government procurement policies caused instrument
sales to fall. However, we saw a rise centered on thehemostasis field, of reagents used to predict COVID-19
aggravation. Performance was also affected by foreignexchange movements. As a result, sales in China cameto ¥96.9 billion (up 3.8% year on year). (Sales were
down 7.6% on a local currency basis.)
Asia Pacific
The Asia Pacific region has a large population, and themarket is expected to expand going forward. This market
is diverse, with economic levels, languages, and healthcare systems differing by country. Nevertheless, we arereinforcing our position by providing solutions from a customer viewpoint and meeting local needs. In fiscal 2022,
performance was favorable in India, where we transitioned
to a direct sales structure in fiscal 2019. Also, an increasein the installed instrument base pushed up reagent sales inSoutheast Asia in the hematology, urinalysis, and immunochemistry fields. As a result, sales in the Asia Pacific region
amounted to ¥36.4 billion (up 23.2% year on year).
Japan
Aiming to establish an undisputed No. 1 position in the
IVD market in Japan, Sysmex differentiates itself fromcompetitors. We are also working to capture new markets by promoting developments in such areas as cancer
genomic medicine and the medical robotics business. In
fiscal 2022, new products in the hematology field and demand for testing related to COVID-19 pushed up instrument sales. In addition to immunochemistry and hemostasis reagents, we also experienced a rise in instrument
sales in our medical robotics business. Accordingly, salesin Japan came to ¥59.8 billion (up 7.6% year on year).

Sysmex’s Value Creation

Americas
In the Americas, Sysmex obtained the No. 1 position in
the hematology field by leveraging our outstanding customer service, such as services and support that makeuse of online tools. In fiscal 2022, sales of hematology
instruments increased in North America, and reagent
sales rose in the urinalysis field due to expansion of ourinstalled instrument base. Reagent sales were also robust in the hematology and urinalysis fields in Central
and South America, where we reinforced our direct
sales structure. As a result, sales for the region were¥105.9 billion (up 26.6% year on year). Sales were up
5.2% on a local currency basis.
EMEA
In the EMEA region, Sysmex’s business covers morethan 100 countries, including developed countries andemerging markets, and we are creating sales and service and support structures tailored to regional characteristics. In addition to our mainstay hematology field,
we strengthened operations in the hemostasis field byleveraging our alliance with Siemens Healthineers. In fiscal 2022, performance was affected by geopolitical risks,
but the acquisition of large tenders and an increase in
the installed instrument base due to a larger direct sales
region led to higher sales of instruments and reagents in
the hematology and urinalysis fields. Accordingly, regional sales amounted to ¥111.3 billion (up 9.7% year onyear). Sales were up 1.6% on a local currency basis.
China
Sysmex recognized the growth potential of the Chinese
market early on, and we took the lead over competitors
in developing local business structures in the country.
We have built a robust infrastructure in China, working
with numerous sales distributors to provide products
and services throughout the country. We have createda structure to manufacture instruments locally using a

About Sysmex(Fiscal 2022)

Assets, Liabilities, and Equity

Cash Flows

Returns to Shareholders

At the end of fiscal 2022, cash and cash equivalents

Sysmex aims to maintain an appropriate balance be-¥531.0 billion, up ¥47.3 billion from the previous year.

amounted to ¥69.4 billion, down ¥4.2 billion from one

tween shareholder returns as profitability increases,

short-term bank loans and other means. Consolidated

This increase was attributable mainly to increases ofyear earlier.

internal reserves to invest in research and development,

subsidiaries obtain bank loans as needed to secure¥7.6 billion in trade and other receivables, ¥11.3 billion in

Cash Flows from Operating Activities

and capital expenditures to maintain high rates of stableworking capital, but in October 2003, the Company

inventories, and ¥16.2 billion in intangible assets.

Net cash provided by operating activities was ¥68.8

growth. In terms of returns to shareholders, we intend

billion, up ¥10.0 billion from the preceding fiscal year.

to provide a stable dividend on a continuous basis andintroduced a cash management system (CMS) to in-

Meanwhile, total liabilities were up ¥8.0 billion fromcrease efficiency by unifying financing and capital man-the previous fiscal yearend, to ¥142.7 billion. Principal

As principal factors, increases in trade receivables andaim for a consolidated payout ratio of 30% under ouragement at affiliates in Japan.

increases included income taxes payable, which rose

inventories used more cash than in the previous fiscal

basic policy of sharing the successes of our operations
in line with business performance.

Sysmex Corporation currently holds an issuer rating¥1.8 billion, other short-term financial liabilities, which in-year, while profit before tax and depreciation and amor-of AA- from Rating & Investment Information, Inc. (R&I),

creased ¥2.0 billion, and contract liabilities, which weretization provided cash.

with the rating updated based on an annual review. To

up ¥1.6 billion.

As a basic policy, Sysmex pays twice-yearly dividends from retained earnings, an interim dividend andTotal equity came to ¥388.3 billion, up ¥39.3 bil-

Net cash used in investing activities was ¥51.7 billion (upa year-end dividend. The year-end dividend is decided

take the balance between sales, profit, assets, liabilities,

lion from the end of fiscal 2021. Among the principal¥16.6 billion). Among major factors, the Company used

upon approval of the annual shareholders’ meeting, andand capital into consideration. For long-term capital

reasons, retained earnings rose ¥28.4 billion, and othermore cash for purchases of property, plant and equip-

the interim dividend upon approval by the members ofrequirements such as capital investment, the Company

components of equity increased ¥10.6 billion. Equity

ment, and for purchases of intangible assets.

the Managing Board. In accordance with this policy anddecides the funding method after considering the in-attributable to owners of the parent to total assets rose

Cash Flows from Financing Activities

considering business performance during fiscal 2022,

vestment recovery period and risk.

1.0 percentage point, from 72.0% to 73.0%.

we announced dividends for the year of ¥82 per share,(up ¥3.6 billion). This was mainly due to dividends paid

which includes an interim dividend of ¥40. As a result,tal expenditure and R&D activities out of cash generatedof ¥16.5 billion (up ¥1.2 billion) and ¥7.9 billion in repay-

the dividend payout ratio came to 37.5%.

through operating activities.

ments of lease liabilities (up ¥1.3 billion).

Going forward, Sysmex will continue to effectively
invest its internal reserves in the implementation ofhighly competitive product development and global
business strategies, aiming to respond to anticipatedchanges in the business environment.

Total assets
Total equity

Net cash provided
by operating activities

531.0 (¥ billion)
483.7

Net cash used
in investing activities

66

68.8

52

58.7
56.8
53.1

424.8

(FY)
2019
2020
2021
2022

349.0
306.0
278.3

265.1

70

72

72

76

82

84 (Yen)58

38

388.3 (¥ billion)

389.2
346.7

Net cash usedin financing activities

Cash dividends applicable to the year (figures adjusted for stock split)
Dividend payout ratio

17
15
12.5
14
12
9
6.5
3.125 3.75
526.8 31.9 29.4 27.0 29.1
18.9 22.6 17.8 17.9 20.0

20
29.1

27

27.1

29.6 27.5

29.7

35.1

35.4

43.1

47.1

36.0

37.5

33.8
(%)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (FY)
(Forecast)

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

(25.9)(29.1)(35.0)(20.5) (20.2)(20.5)(24.2) (¥ billion)(51.7)
20182019

93 Sysmex Report 2023

2020

2021

2022
(FY)

Sysmex Report 2023 94

Activity Report andCorporate Overview

 Cash Dividends Applicable to the Year/Dividend Payout Ratio (Consolidated) Cash Flows

Total Equity

Corporate GovernanceNet cash used in financing activities was ¥24.2 billion

In fiscal 2022, the Company mainly funded its capi-

Mid-Term Management Planand Initiatives

Cash Flows from Investing Activities

maintain and increase our rating going forward, we will

 Total Assets

Sysmex’s Value Creation

As of the end of fiscal 2022, total assets amounted to
Sysmex raises working capital as necessary throughAbout Sysmex

Fund Procurement andLiquidity Management

Consolidated Financial Data (10 Years)
Japanese GAAP
2013

2014

(¥ billion)

IFRS

2015

Fiscal years(¥ billion)

2015

2016

2017

2018

2019

2020

2021

2022

For the year:

For the year:

Net sales

184.5

221.3

253.1

Net sales

252.6

249.8

281.9

293.5

301.9

305.0

363.7

410.5

Operating profit

60.7

51.7

59.0

61.2

55.2

8

50.0

67.4

73.6

Profit attributable to owners of the parent

39.2

40.6

39.2

41.2

34.8

31.98

44.0

45.7

44.4

56.9

Net income1

20.5

26.6

36.2

Capital expenditure5

21.4

19.3

24.9

30.2

27.1

25.7

33.2

42.0

Capital expenditure

17.1

17.3

19.9

Depreciation and amortization

12.1

12.3

14.6

15.8

23.9

25.5

27.4

31.8

Depreciation

9.9

11.2

12.2

R&D expenses

15.4

15.5

16.7

19.5

21.7

22.5

26.7

31.0

R&D expenses

13.2

14.6

17.7

41.7

32.8

52.2

44.7

53.17

56.88

58.7

68.8

Net cash provided by (used in) operating activities

36.5

38.6

39.5

Net cash provided by (used in)operating activities

Net cash provided by (used in) investing activities(33.9)(19.5)(21.6)Net cash provided by (used in)investing activities(23.8)(19.4)(37.8)(40.1)(25.9)(29.1)8(35.0)(51.7)Net cash provided by (used in) financing activities

(2.8)

(7.5)

(8.7)

Net cash provided by (used in)financing activities(8.7)(10.8)(11.5)(14.0)(20.5)7(20.2)(20.5)(24.2)

5

At year-end:

At year-end:

Total assets

210.7

247.9

267.6

Total assets

263.9

279.8

321.9

346.7

389.27424.88

483.7

531.0

Cash and cash equivalents, end of year

36.5

50.2

56.4

56.4

57.9

61.4

51.0

56.5

66.4

73.7

69.4

Total equity

146.2

169.5

188.0

Cash and cash equivalents,
end of year

210.2

241.4

265.1

278.3

306.08

349.0

388.3

0.7

1.3

Total equity

182.8

1.9

1.3

1.1

0.9

0.8

23.17

22.5

22.8

23.5

Interest-bearing liabilities

Interest-bearing liabilities

703.73

812.3

899.5

Equity attributable to owners of
the parent (yen)879.32

1,005.86

1,154.57

1,267.07

1,329.78

1,460.888

1,664.85

1,852.68

Net income (basic) (yen)

99.43

128.4

174.4

Profit attributable to owners of
the parent (basic) (yen)189.08195.31

188.29197.60167.10152.738210.88218.83

Net income (diluted) (yen)

99.13

128.0

173.7

Profit attributable to owners of
the parent (diluted) (yen)188.30194.74187.84

197.29166.93152.478210.49218.73

Cash dividends applicable to the year (yen)27.003

38.00

52.00

Cash dividends applicable tothe year (yen)

52.00

58.00

66.00

70.00

72.00

72.00

76.00

82.00

Dividend payout ratio (%)

27.1

29.6

29.8

Dividend payout ratio (%)

27.5

29.7

35.1

35.4

43.1

47.18

36.0

37.5

16.48

18.5

17.9

Other data:

Other data:

Operating margin (%)

17.8

20.1

22.5

Operating margin (%)

24.0

20.7

21.0

20.9

18.3

Overseas sales ratio (%)

78.2

81.7

84.3

Overseas sales ratio (%)

84.2

82.6

84.0

85.0

84.5

84.0

84.7

85.4

Equity ratio (%)

69.2

68.0

69.9

Equity ratio (%)

69.3

74.8

74.8

76.3

71.3

71.98

72.0

73.0

Return on equity (ROE) (%)

15.6

17.0

20.4

Return on equity (ROE) (%)

23.1

20.7

17.4

16.3

12.9

8

10.9

13.5

12.4

Return on assets (ROA) (%)

10.7

11.6

14.1

Return on assets (ROA) (%)

15.7

14.9

13.0

12.3

9.5

8

7.8

9.7

9.0

6,211

6,742

7,446

Number of employees

7,446

7,930

8,445

8,715

9,231

9,510

9,812

10,522US dollars (yen)

100.2

109.9

120.1

US dollars (yen)

120.1

108.4

110.9

110.9

108.7

106.1

112.4

135.5

Euros (yen)

134.4

138.8

132.6

Euros (yen)

132.6

118.8

129.7

128.4

120.8

123.7

130.6

141.0

Chinese Yuan (yen)

16.3

17.8

18.9

Chinese Yuan (yen)

18.9

16.1

16.8

16.5

15.6

15.7

17.5

19.8

4

Number of employees(Including part-time and other employees)

Exchange rates:(Including part-time and other employees)

Exchange rates:

1. Figures shown for fiscal 2015 is “net income attributable to owners of the parent.
2. Dividend (actual) converted to post-split basis.
3. Two-for-one stock split
4. ROA = Net income attributable to owners of the parent/total assets (yearly average)×100
95 Sysmex Report 2023

6

5. Including tangible and intangible items
6. ROA = Profit attributable to owners of the parent/total assets (yearly average)×100
7. Adopted IFRS 16 (from fiscal 2019)8 In fiscal 2021, Sysmex changed its accounting policy for configuration or customization costs in cloud computing contracts to recognize
costs as expenses when services are received. Accordingly, we have by retroactively adjusted the figures for the fiscal 2020.
Sysmex Report 2023 96

Activity Report andCorporate Overview

Equity (yen)Corporate Governance

Per share data:

Per share data:

Mid-Term Management Planand Initiatives

32.8

Sysmex’s Value Creation

Operating income

About Sysmex

Fiscal years

Consolidated Statement of Financial Position

Consolidated Statement of Income

Sysmex Corporation and Its Subsidiaries
As of March 31, 2023

Sysmex Corporation and Its Subsidiaries
For the Year Ended March 31, 2023

2023

2022

¥ 73,752
118,697
61,944
1,498
470
18,728275,092$  518,358
942,679
547,0906,530
4,478
186,000
2,205,157

102,106
16,84273,53092
17,895
9,777
614
3,842
10,880235,583¥531,074

98,52513,01057,260986
16,403
9,157
841
3,910
8,520
208,614¥483,707

761,985
125,687548,731687
133,545
72,963
4,582
28,672
81,194
1,758,082$3,963,239

2022¥410,502
194,419
216,082
112,371
31,060
2,368
4,103
705
73,679863
1,566(2,923)(1,339)68,713
22,988¥ 45,725¥363,780
173,195
190,585
94,23526,784

1,409
3,557
67,416550
909(3,561)
850
64,346
20,274¥ 44,071$3,063,448
1,450,888
1,612,552
838,590
231,791
17,672
30,6195,261
549,843
6,440
11,687(21,813)(9,993)
512,784
171,552$  341,231

Profit attributable to
Owners of the parent
Non-controlling interests
Profit¥ 45,784(59)¥ 45,725¥ 44,093(21)¥ 44,071$  341,672(440)$  341,231—¥ 32,111
6,439
1,482
12,813
1,234
12,852
17,498
10,985
6,663
102,082$  236,403
53,351
26,396
109,418
8,381
107,978
140,090
84,77662,299829,119

15,442
305
1,959
398
7,059
6,450
31,615
142,718

15,840
30
1,183
366
8,537
6,613
32,571
134,654

115,2392,276
14,6192,970
52,67948,134
235,933
1,065,060

14,282
20,580334,192(314)
18,925
387,665690
388,356¥531,074

14,112
20,483
305,710(312)
8,309
348,303750
349,053¥483,707

106,582
153,582
2,493,970(2,343)
141,2312,893,022
5,149
2,898,179$3,963,239¥218.83
218.73

U.S. Dollars¥210.88
210.49$1.63
1.63

Note: The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan andhave been made at the rate of ¥134 to $1, the approximate rate of exchange at March 31, 2023.

Consolidated Statement of Comprehensive Income
Sysmex Corporation and Its Subsidiaries
For the Year Ended March 31, 2023

2023

2022

Thousands of
U.S. Dollars
2023¥45,725¥44,071$341,231

484

(213)

3,612

(774)
(289)

(66)
(280)

(5,776)(2,157)

10,117

12,64775,50012

390

10,1309,841¥55,566

12,65012,370¥56,442

75,59773,440$414,672¥55,625(59)¥55,566¥56,463(21)¥56,442$415,112(440)$414,672

Millions of Yen

ProfitOther comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss
Net (loss) gain on financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Total
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using the equity method
Total
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of the parent
Non-controlling interests
Comprehensive income

Note: The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan andhave been made at the rate of ¥134 to $1, the approximate rate of exchange at March 31, 2023.
Sysmex Report 2023 98

Activity Report andCorporate Overview¥ 31,678
7,149
3,537
14,662
1,123
14,46918,772
11,3608,348
111,102

Earnings per share
Basic
DilutedCorporate Governance

Yen

Note: The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan andhave been made at the rate of ¥134 to $1, the approximate rate of exchange at March 31, 2023.

97 Sysmex Report 2023

2023

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Research and development expenses
Impairment losses
Other operating income
Other operating expenses
Operating profit
Financial income
Financial expenses
Share of loss on equity method
Foreign exchange gain (loss)
Profit before tax
Income tax expenses
ProfitMid-Term Management Planand Initiatives¥ 69,460
126,319
73,310875
600
24,924295,491

Thousands of
U.S. Dollars
2023

Millions of Yen

Sysmex’s Value Creation

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other short-term financial assets
Income taxes receivable
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using the equity method
Trade and other receivables
Other long-term financial assets
Asset for retirement benefits
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Other short-term financial liabilities
Income taxes payable
Provisions
Contract liabilities
Accrued expenses
Accrued bonuses
Other current liabilities
Total current liabilities
Non-current liabilities
Lease liabilities
Other long-term financial liabilities
Liability for retirement benefits
Provisions
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Capital stock
Capital surplus
Retained earnings
Treasury stock
Other components of equity
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

Thousands of
U.S. Dollars
2023

About Sysmex

Millions of Yen

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Sysmex Corporation and Its Subsidiaries
For the Year Ended March 31, 2023

Sysmex Corporation and Its Subsidiaries
For the Year Ended March 31, 2023

¥13,229—¥(307)—¥   (4,082) ¥305,318—
44,093Total
equity¥771 ¥306,089(21)
44,071————

12,37012,370012,370

—
882
—
—
—
—

—
502
399
—
—
—

44,093——(15,258)
—
(21)

—
—
—
—
(4)
—

12,370————21

56,463
1,384
399(15,258)
(4)
—

(21)
—
—
—
—
—

56,442
1,384
399(15,258)(4)—(15,280)(4)

21(13,478)—(13,478)

305,71045,784

(312)
—

8,309
—

348,30345,784750(59)

349,053
45,725

—

—

—

—

9,841

9,841

(0)

9,841

—
170
—
—
—
—

—
97
—
—
—
—

45,784——(16,528)
—
(774)

—
—
—
—
(1)
—

9,841
—
—
—
—
774

55,625267—(16,528)
(1)
—

(59)
—
—
—
—
—

55,566267—(16,528)
(1)
—

170

97

(17,302)(1)

774(16,263)—(16,263)¥20,580 ¥334,192¥(314)¥14,282

Thousands of U.S. Dollars
Equity attributable to owners of the parent
Other
CapitalRetained
Treasurycomponents
surplusearnings
stockof equity$152,858 $2,281,418—
341,672

Total$(2,328) $ 62,007 $2,599,276——
341,672¥690 ¥388,356

Noncontrollinginterests

Total
equity$5,597 $2,604,873(440)
341,231

—

—

—

—

73,44073,440(0)73,440

—
1,269
—
—
—
—

—
724
—
—
—
—

341,672——(123,343)—(5,776)

—
—
—
—
(7)
—

73,440
—
—
—
—
5,776

415,112
1,993—(123,343)
(7)
—

(440)
—
—
—
—
—

414,672
1,993—(123,343)
(7)
—

1,269

724

(129,119)

(7)

5,776

(121,366)—(121,366)$106,582$153,582 $2,493,970$(2,343) $141,231 $2,893,022$5,149 $2,898,179

Note: T he translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan andhave been made at the rate of ¥134 to $1, the approximate rate of exchange at March 31, 2023.

2022¥ 68,713
31,807
2,368
(704)
1,133
2,923
265
(2,980)(983)(10,558)
(13)
(713)
747
766
1,450
125
(920)
93,425676(985)(24,281)
68,835¥ 64,346
27,431(17,485)337(25,020)(646)(5,189)

—
(408)
740
3,561
2,245
(10,297)832(12,495)(5,055)
1,108
2,044(2,417)
158
1,984
70
73,850298(704)(14,705)
58,739$ 512,784
237,366
17,672(5,254)
8,455
21,813
1,978(22,239)(7,336)(78,791)(97)(5,321)
5,575
5,716
10,821933(6,866)697,201
5,045(7,351)(181,201)
513,694—(12,768)545(19,266)(1,896)(320)(1,199)(2,984)
(711)
811
(863)
(51,751)

(640)
755
(260)
(35,052)(130,485)
2,515(186,716)(4,821)(38,724)—(22,269)(5,306)
6,052(6,440)(386,201)267(16,528)(7,959)(13)(24,234)

1,384(15,258)(6,577)(90)(20,542)

1,993(123,343)(59,396)(97)(180,851)

2,858

4,139

21,328(4,291)73,752¥ 69,460

7,284
66,467¥ 73,752(32,022)550,388$ 518,358—

Note: The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan andhave been made at the rate of ¥134 to $1, the approximate rate of exchange at March 31, 2023.

99 Sysmex Report 2023

Sysmex Report 2023 100

Activity Report andCorporate Overview$105,313—¥18,925 ¥387,665

2023

Corporate Governance901
20,483—Operating activities
Profit before tax
Depreciation and amortization
Impairment loss
Interest and dividend income
Interest expenses
Share of loss on equity method
Loss on disposal of property, plant and equipment(Increase) in trade receivables
Decrease (increase) in advance payments(Increase) in inventories(Decrease) in trade payables
Increase (decrease) in accounts payable – other
Increase in accrued expenses
Decrease/increase in consumption taxes receivable/payable
Increase in contract liabilities
Increase in accrued bonuses
Other – net
SubtotalInterest and dividend received
Interest paid
Income taxes paid
Net cash provided by operating activities
Investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Increase in long-term prepaid expenses
Purchase of investments in equity instruments
Purchase of investments in debt instruments
Acquisitions of subsidiaries or other businesses
Payments into time deposits
Proceeds from withdrawal of time deposits
Other – net
Net cash used in investing activities
Financing activities
Exercise of warrants
Dividends paid
Repayment of lease liabilities
Other – net
Net cash used in financing activities
Foreign currency translation adjustments on cash andcash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year

Mid-Term Management Planand Initiatives

882
14,112—

Capitalstock

As of March 31, 2022
ProfitOther comprehensive income(loss)
Comprehensive income (loss)
Exercise of warrants
Stock-based compensation
Cash dividends
Purchase of treasury stock
Transfer to retained earnings
Total transactions withthe owners
As of March 31, 2023

¥19,581 ¥276,897—
44,093

Total

Noncontrollinginterests

Thousands of
U.S. Dollars
2023

Sysmex’s Value Creation

As of March 31, 2021
ProfitOther comprehensive income(loss)
Comprehensive income (loss)
Exercise of warrants
Stock-based compensation
Cash dividends
Purchase of treasury stock
Transfer to retained earnings
Total transactions withthe owners
As of March 31, 2022
ProfitOther comprehensive income(loss)
Comprehensive income (loss)
Exercise of warrants
Stock-based compensation
Cash dividends
Purchase of treasury stock
Transfer to retained earnings
Total transactions withthe owners
As of March 31, 2023

Millions of Yen

About Sysmex

Capitalstock

Millions of Yen
Equity attributable to owners of the parent
Other
CapitalRetained
Treasurycomponents
surplusearnings
stockof equity

Corporate Overview

Sysmex’s Businesses

About Sysmex

Diagnostics Business

What can be determined from samples (blood, urine, and cancer tissue)

IVD

Medical Robotics Business
Blood vessels

Blood Testing
Red bloodcellsWhite blood
cells

Clotting factors

Note: Some tests also include blood testing

Viruses

Medicalcheckups

Detailed follow-ups

Treatment/surgery

Efficacy evaluation

Prognosis

Hormones

Lymph nodes

Clinical Testing

In Vitro Diagnostics• Hematology*1• Clinical chemistry*1• Hemostasis• Gene testing• Urinalysis*1• Other• Immunochemistry*1 (FCM, testing for
antimicrobial
resistance, etc.)

In Vivo Diagnostics• Image scanning• Electrocardiography• Respiratory function testing• Electroencephalogram testing• Ultrasonography

 Life Science
Cancer gene testingThrough the detection and analysis of cancer
genes, this testing contributes to decisions
on treatment protocols and drug
administration.
[Related diseases: breast cancer, lungcancer, colorectal cancer, etc.]

Urine Testing
Cancer cellsDNA Urinalysis
Testing to determine the presence of sugar,
proteins or blood in the urine[Related diseases: kidney stones, kidneydisease, diabetes, etc.]

Sysmex1. Diagnostics used for medical checkups

101 Sysmex Report 2023

Sysmex Report 2023 102

Activity Report andCorporate Overview

Prevention

 Immunochemistry
Testing for the status of viruses, hormonesand proteins, and determining causes andtypes of disease[Related diseases: infectious diseases(hepatitis B and C), thyroid disease, various
cancers, myocardial infarction, Alzheimer’s
disease, atopic dermatitis, etc.]

Cancer and Lymph Node Testing

Proteins

 Sysmex’s Diagnostics Business Domain
Healthcare Activities

 Hemostasis
Testing that measures the ability of blood toclot at wound sites (coagulation) anddissolve clots (fibrinolytic)[Related diseases: hemophilia, thrombotic
disease (myocardial infarction, cerebral
infarction, etc.)]

Corporate Governance

Platelets

 Hematology
Testing that measures and analyzes thenumber, type, and size of red, white andother blood cells[Related diseases: anemia, leukemia,
thrombocytopenia, etc.]

Mid-Term Management Planand Initiatives

In recent years, it has become common to perform
minimally invasive laparoscopic surgery to reduce thephysical burden on patients. However, this surgery
requires a high degree of technical skill, and surgicalsupport robots that complement these skills are attracting attention from medical workers. Currently,
insurance coverage of surgical procedures using theserobots has been extended to include urology, gastroenterology, and gynecology, and the number of surgeries
performed using surgical support robots is gradually
increasing. In addition, from the viewpoint of improving
access to medical care, such robots are being considered for use with remote medicine. It may not be long
before surgeries can be performed with doctors andpatients in different locations.
Under these circumstances, Medicaroid
Corporation, a joint venture between Sysmex and
Kawasaki Heavy Industries, Ltd., developed the firstmade-in-Japan robotic-assisted surgery system. As theglobal general distributor for this product, Sysmex began its launch in Japan in 2020.

Sysmex’s Value Creation

Clinical testing, which is essential to healthcare, can bebroadly divided into two categories: in vitro diagnostics(IVD) that involve the examination of blood, urine, andother samples taken from the body, and in vivo diagnostics, which involve direct examination using X-rays orelectrocardiograms. Sysmex is developing its diagnostics business, centered on the IVD domain, where we
provide medical institutions and other customers with
instruments, reagents, and software on a global basis.
IVD is used in a variety of ways. It is used during
medical checkups to help prevent disease. IVD is also
used in diagnosing diseases, determining treatment
methods, measuring the results of drug administration,
predicting aggravation, and for post-treatment monitoring. Healthcare without accurate test results is likewalking through fog; the path is uncertain. IVD is essential because it allows medical professionals to assess apatient’s state of health accurately and swiftly, and to
determine optimal treatment methods.
In IVD, within Sysmex’s main business fields of hematology, urinalysis, and immunochemistry, testing is
conducted to check a patient’s physical condition. They
are used for a wide range of other purposes, such as
disease prevention and early-stage detection throughmedical checkups, and in treating diseases or managing
their prognoses. In fields such as hemostasis and genetesting, tests are performed to measure a person’s
physical condition in greater detail and are mainly usedin the process of diagnosing and treating diseases.

Primary Products and Services

SysmexDepending on the country andregion, patients may consult
directly with commercial labs.

1 Commercial Labs

Specimens

Test results

Consultations
Diagnosis andtreatment

2 Hospitals
3 Clinics

Specimens
Test results

Lab Assay
Services

For small- and medium-sized institutions, Sysmex offers three-part white blood cell differential models, used
for determining basic parameters, as well as five-part
white blood cell differential models, used to deliver ahigh degree of clinical significance and require numerous reagents. In addition, we offer a wide-ranging lineup,
including transport systems that can be used for rapid,
high-volume testing in large-scale labs. In Japan in 2021,
we launched a new five-part white blood cell differential
flag-ship model, as well as a compact model providing three-part white blood cell differentiation. In 2022,
 Product Lineup of Multiparameter Automated Hematology Analyzers

Specimens

4 Universities,
Research Institutions

Test results

Instruments andReagents for Animals
Service and Support

Commercial labs conduct testing for small-scale medical institutions that do not have their own analyzers, as well as handling specialized
tests. Large-scale labs, which handle tens of thousands of samples each day, use high-productivity transport systems.

2 Hospitals
In addition to blood tests used in medical checkups and for in- and out-patient treatment and diagnostics, our products are used totest for cancer lymph node metastasis, and in cancer genome profiling.

3 Clinics
Clinics typically use products that are compact and simple.

Three-Part Differential White Blood Cell Instruments

Reagents

Efficiency and Handling Capacity

A Manufacturing System That Supports the Global Supply of Products
In order to deliver safe, high-quality products globally, Sysmex has established a robust production system for both
instruments and reagents to ensure a stable supply.
Instrument Manufacturing

Reagent Production

Centered on eight locations in Japan

14 locations in 10 countries(Chemical: 8 locations; biological: 6 locations)

Instruments must meet high quality standards to ensure
accurate test results. Sysmex has established an efficient
production system utilizing ICT to manufacture diverse,
high-quality and failure-resistant products in small lots.
Additionally, we work to achieve efficient and robust collaboration from our instrument manufacturing facility in
Hyogo Prefecture, which is also our hub for R&D, service
and support.

IVD requires reagents, and medical institutions requirea steady supply to ensure uninterrupted daily testing.
Taking contingency systems into consideration, we
have established global production bases to achieve astable supply.

4 Universities and Research Institutions, etc. (Lab Assay Services)
We are developing a lab assay business, in which we receive samples from medical institutions, test them at our labs and ouraffiliated companies (such as Sysmex Inostics and RIKEN GENESIS), and send back the results of protein or gene analyses
performed on those samples. In addition to medical institutions, we handle measurements on behalf of universities, research
institutes, and pharmaceutical companies, providing information to assist their drug discovery and R&D efforts.

5 Veterinary hospitals
Our products are used in maintaining the health of dogs, cats, and other pets, as well as aquarium and zoo animals.

Activity Report andCorporate Overview

1 Commercial Labs

Corporate Governance

Patients

Diagnosis andtreatment
5 Veterinary Hospitals

Five-Part Differential White Blood Cell Instruments

Information Diversity and Function

Consultations

Mid-Term Management Planand Initiatives

Patients

we launched sample transportation system modules
equipped with the world’s first automated measurement
function for quality control materials. Beginning with thelaunch of these products in the EMEA region in 2023,
going forward we plan to roll out these models globally.
In 2018, we launched the first products to havereceived CLIA-waiver certification to clinics and othersmall-scale facilities in the United States. We are also
rolling out products to help realize early-stage detection
and treatment of malaria. In EMEA in 2019, and in Japan
in 2020, we launched an analyzer that supports standardization and improved efficiency in malaria testing.

>> Expansion of Our Procurement, Production and Distribution Structures P49

103 Sysmex Report 2023

Sysmex’s Value Creation

Instruments andReagents
Service and Support

Hematology

About Sysmex

Diagnostics Business

Sysmex’s Products in Use

Sysmex Report 2023 104

About Sysmex

Cancer Gene Testing

Antimicrobial Susceptibility Testing

We are developing products that utilize the flow cytometry method. Areas of business include clinical FCM(clinical testing to perform detailed analysis in diagnosing leukemia, malignant lymphoma, and HIV/AIDS),
industry FCM (used in the quality control of food andother industrial applications) and research FCM (analyzing the function of cultured cells and other research
applications). In 2020, we launched an FCM analyzer for
research in North America, the world’s largest market
for FCM testing. In 2022, we received the EU’s In Vitro
Diagnostic Medical Device Regulation (IVDR) certification and began our market launch in Europe. Sales inJapan commenced in 2023.

We developed the world’s first automated urine particle analyzer using the flow cytometry method. We arealso adding to our portfolio of urine chemistry products
by making use of alliances as we work to expand our
lineup in response to diverse urinalysis needs. In 2020,
we signed a distributorship agreement with Siemens
Healthineers for the North American market. In 2022,
we launched new products for the mid- and low-end
markets in Japan. We are rolling these out to the EMEA
region, and we plan to further expand our market scale.

Using our proprietary technology, the OSNA method, we
provide a system that automatically and easily detects information to assist in diagnosing
lymph node metastasis. We
launched this system in China
Cancer Lymph Nodein 2020.
Metastasis Testing System
We have developed a system for use in cancer gene profiling in collaboration with
the National Cancer Center Japan. The system’s targets
for analysis are solid tumors. By obtaining a comprehensive cancer genomic profile of tumor tissue, thesystem analyzes abnormalities in cancer-specific genes
in patients to provide information that is useful in determining treatment methods, including diagnoses and theselection of anti-cancer drugs. In 2019, this became thefirst such system to be covered under Japanese healthinsurance to be used in clinical settings.

In June 2023, we launched in Europe a system to rapidly
detect antimicrobial susceptibility. The system detects
the presence or absence of bacteria and assesses theeffectiveness of antimicrobials using urine samples
from patients suspected of having urinary tract infections. This system delivers test results in as little as 30
minutes, comparedwith the several days
that were previously
required. This assists
the appropriate use of
antimicrobials during
Analyzer
Reagent cartridge
initial patient visits at(Test panel)clinics and other primary
Rapid antimicrobial susceptibility
care settings.
testing system

Fully automated urine particle analyzer
Fully automated urine chemistry analyzer
Fully automated imaging unit for formed elements in urine

Other Lab Assays
Reagents

Immunochemistry

Sysmex handles products offering a wide range of processing capabilities to meet the needs of various facilities. Demand for hemostasis testing has increased andgrown more diverse due to a rise in thrombotic diseases
stemming from lifestyle diseases, as well as to the development of new blood preparations.
In 2018, we launched a new product offering enhanced productivity, reliability and operability, and weare working toward a global roll-out. In addition to analliance with Siemens Healthineers in the area of reagents, we work with Group company HYPHEN BioMed
SAS to develop products offering high clinical value.

We are working to develop our business in Asia, including Japan and China, through sales of a fully automatedimmunoassay system, which performs highly sensitive,
high-speed assays on minute sample quantities.
In addition to reagents to test for infectious disease
and tumor markers, we are develop-ing proprietary markers to test for measuring progression of hepatic fibrosis
and atopic der-matitis. We are also developing new testing parameters, such as reagents to test for Alz-heimer’s
disease, which we began selling in Japan in 2023.
In China we are working to differentiate ourselvesby augmenting the number of parameters tailored toregional needs. To do so, we are pursuing development
through our local R&D bases and joint developmentwith local companies.

>>Lab Assay Services P103

Robotic-assisted surgery system

Products, Service, and Support That Enhance Customer Satisfaction
In addition to expanding its product portfolio, Sysmex is enhancing its service and support offerings. As a result, wehave earned high customer satisfaction in Japan and overseas. In a customer satisfaction assessment in the UnitedStates, we have been at the top for 17 consecutive years.
 Customer Assessment in the United States (Overall Service Performance)
5.6

9.5

5.4

9.0

5.2

8.5

5.0

8.0

4.8

7.5

4.6

7.0

4.4

6.5

4.2

Reagents
Automated blood
coagulation analyzer
105 Sysmex Report 2023

Reagents
Automated immunoassay
systemCompact enough to fit in standard Japanese operatingrooms, this system is equipped with user-friendly robot
arms and a high-definition 3D videoscope. Furthermore,
the system has been
designed to be network
compatible, to support
more accurate treatment
by medical workers.

9.42
9.16

6.0

2007

Sysmex

2008

2009

Competitor 1

2010

2011

Competitor 22013 2014 2015 20162012
Competitor 3

Competitor 42017 2018 2019 2020 2021 2022 2023

Industry Avg.

Note: Scale of 1 to 6 from 2007 to 2012, and a scale of 1 to 10 from 2013 to 2023
Source: IMV ServiceTrak 2020 Hematology

Sysmex Report 2023 106

Activity Report andCorporate Overview

Hemostasis

We offer services making use of highly sensitive digital
PCR technology to detect gene mutations to a highdegree of sensitivity that are present in minute samplesof blood, and ultrahigh-sensitivity NGS technology.

Robotic-Assisted Surgery System

Corporate Governance

Flow cytometer

Medical Robotics Business

Mid-Term Management Planand Initiatives

Urinalysis

Sysmex’s Value Creation

Flow Cytometry (FCM)Terminology

Antimicrobial susceptibility test

A test to determine the efficacy of various antimicrobial drugs against pathogenic bacteria detected in a sample.

Application

Corresponds to a test parameter in Sysmex’s various technology platforms.

Cancer genome profiling

Analysis of information about genes significant to cancer diagnostics by looking
at mutations, amplifications, and fusion of multiple genes in cancer tissue.

Caresphere

Caresphere utilizes IoT and the cloud to establish a platform for the real-timelinking and analysis of a variety of information managed using testing instruments
and clinical laboratory information systems. It is a new network solution that provides support for increasing the operational efficiency of professionals involvedin testing and healthcare, enhancing quality and raising patient satisfaction.

A technique developed by Sysmex that does not require extraction or purificationof nucleic acid in the pre-treatment process, enabling one-step amplification.

Panel testing

A test that allows multiple markers to be measured at once. Particularly in genomic medicine, cancer panels are used to analyze the mutation, proliferation,and fusion of multiple genes having diagnostic significance.

Personalized medicine

Different from the conventional practice of providing selected predeterminedor uniform treatment for a given disease, personalized medicine aims to selecttreatment methods optimized to individual patient characteristics, based on
genetic and other data.

Polymerase chain reaction (PCR)

A gene amplification technology for copying small quantities of DNA to produce
larger quantities.

Precision management

A management method used to guarantee the values measured by customers’
testing equipment and to confirm that a customer’s equipment is functioning
correctly. External quality control is a method under which the same specimens(such as artificially produced blood) are distributed to multiple clinical laboratories, and the measurement results obtained are analyzed using statisticalmethods, thereby allowing the precision of individual laboratories’ measurement
results to be evaluated. The results are provided as feedback to these laboratories, helping to increase the quality of testing.

Commercial lab

A company that specializes in testing operations, performing IVD on behalf of
medical institutions, research institutes, and other facilities.

Companion diagnostics

Tests performed to identify patients who may benefit from or experience side
effects from a drug and to determine whether to change the method of administration or discontinue the drug.

Complete blood count (CBC)This refers to eight parameters in peripheral blood: red blood cell count, whiteblood cell count, platelet count, hemoglobin volume, hematocrit value, mean
corpuscular volume, mean cor-puscular hemoglobin and the mean corpuscularhemoglobin concentration. These are basic test parameters to determine thepresence of anemia, infections, and blood diseases.

Primary care

The initial care provided at clinics or other locations when a patient first falls ill.

PSS

Acronym for “Plasma Safe Sequencing.” This pretreatment technology is used
to discern between gene mutations and read errors by attaching tags to genes
to be amplified.

EMEA

Europe, the Middle East, and Africa

Quality of life (QOL)

Refers to the maintenance of human dignity and improved wellbeing.

Flow cytometry (FCM)

Method involving the flow dispersion of minute particles and the use of laser
light to optically analyze minute flows.

Reagent

Fluorescence in situ hybridization(FISH) testing

Testing method using fluorescent material binding only specific genes to detect
abnormalities within a chromosome.

A pharmaceutical product for medical use in laboratory testing, also called an
in vitro diagnostic product. It is not used directly on the human body, but onsamples of blood or other bodily fluids.

Genomic medicine

Medicine that allows the prevention of disease or the effective treatment of
individual patients by analyzing their genetic information.

RFID

Automatic recognition system that calls, registers, deletes, and updates media
data via wireless communication.

Hematology

The field of in vitro diagnostics that determines whether precise testing is necessary, by analyzing the number, type, and size of red, white, and other blood cells.

Self-medication

Taking responsibility for your own health and examine and treat minor physicalailments on your own.

In vitro diagnostics (IVD)

In general, IVD refers to the testing of blood, urine and other samples to determine physical condition. IVD may also refer to the domain of laboratory testingin which IVD is performed.

Specimen

Material necessary for testing. May include blood, cerebrospinal fluid, pus, punctured fluid, urine and feces.

Knockdown production method

A production method in which the principal parts are exported from Japan for
local assembly into finished products.

Sysmex Network Communication
Systems (SNCS)

Laboratory developed test (LDT)A test performed in the clinical laboratories of medical institutions, commercial
labs, and other facilities based on their own quality control regulations.

An online support service that connects the Sysmex Customer Support Centerand customers’ instruments via an Internet connection to provide real-time external quality control and scientific information, and to monitor instrument conditions.

Technology platforms

Liquid biopsy

This is a general name for technology using blood or body fluid samples fordiagnosis and the prediction of treatment impacts, rather than through the conventional practice of tissue biopsy, in which diagnosis is performed on diseased
tissue that has been collected. Liquid biopsy is less invasive than tissue biopsy,
but more highly sensitive detection technologies are required.

Sysmex’s three technology areas (cell measurement, protein measurement, andgene measurement) and the measurement platforms that use them.

Transport system

A system that links multiple analyzers, allowing testing to be automated. In addition to making testing operations more efficient, automation helps reduce therisk of infection when samples are handled manually, and prevents mishandling.

Urinary tract infections

The urinary tract runs between the kidneys and the urethral outlet.
Inflammations due to the incursion of bacteria into the urinary tract are known
as urinary tract infections. Such infections can lead to cystitis and pyelonephritis(inflammation of the kidneys).

Urine sediment testing

Testing performed to analyze formed elements in the urine, including blood andother cells. Urine chemistry testing, on the other hand, is conducted by using atest paper to analyze for the presence of sugar, protein, or blood cells in urine.

Manufacturing andmarketing approval(regulatory approval)

107 Sysmex Report 2023

In Japan, the manufacturing and marketing of medical devices and reagentsrequires approval from the Ministry of Health, Labour and Welfare. Such approval necessitates confirmation of a product’s function and safety. Other countries have their own regulatory procedures: approval from the Food and Drug
Administration in the United States, obtaining the CE Mark in Europe (which indicates compliance with the In Vitro Diagnostic Medical Device Directive (IVDD)
and the In Vitro Diagnostic Medical Device Regulation (IVDR)), and in China,
approval from the National Medical Products Administration (NMPA).

Sysmex Report 2023 108

Activity Report andCorporate Overview

Refers to FCM used in a clinical testing setting for analysis in such areas as hemophilia, lymphoma, HIV, and hematopoietic stem cells.

Corporate Governance

Clinical FCM

Mid-Term Management Planand Initiatives

One-Step Nucleic Acid
Amplification (OSNA) method

Sysmex’s Value Creation

This phenomenon occurs when living organisms develop a resistance to a drug,
whose efficacy is decreased or neutralized as a result. Bacteria that have developed microbial resistance are known as antimicrobial-resistant bacteria.

About Sysmex

Antimicrobial resistanceStock Information (As of the End of Fiscal 2022)

Corporate Information (As of the End of Fiscal 2022)

Sysmex Corporation(Calculated as the closing price on March 31, 2012 = 100)

1,200

Shareholders

Sysmex (Figures adjusted for stock split)
Tokyo Price Index (TOPIX)

600

300

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Head Office

1-5-1, Wakinohama-Kaigandori, Chuo-ku, Kobe 651-0073, Japan

27,874

13.3

Inquiries

IR Department: TEL: +81-78-265-0500

12,07512,0005.8
5.7

Websitehttps://www.sysmex.co.jp/en/

Number of Employees

10,522 (consolidated basis) (including part-time employees and others)

11,830

5.7

Fiscal Year

April 1–March 31

10,519
6,094
6,094
4,750
4,012
3,665

5.0
2.9
2.9
2.3
1.9
1.8

Shareholders’ Meeting

June

Number of Shares Authorized

598,688,000 shares

Number of Shares Issued

209,693,992 shares

Paid-in Capital¥14,281.2 million

Stock Listings

Tokyo Stock Exchange, Prime Market

Ticker Code

6869

Transfer Agent

Mitsubishi UFJ Trust and Banking Corporation

Independent Auditor

Deloitte Touche Tohmatsu LLC

RatingAA- (Rating and Investment Information, Inc. (R&I))

Major Indexes

Dow Jones Sustainability World Index
Dow Jones Sustainability Asia Pacific Index
FTSE4Good Index Series
FTSE Blossom Japan Index
FTSE Blossom Japan Sector Relative Index
MSCI ESG Leaders Indexes
MSCI SRI Indexes
MSCI Japan ESG Select Leaders Index
MSCI Japan Empowering Women Index (WIN)S&P/JPX Carbon Efficient Index
ISS ESG “Prime” Status
Ethibel Excellence
Ethibel Pioneer
Ethibel Sustainability Index (ESI)Euronext Vigeo Eiris World 120 Index
iSTOXX MUTB Japan Platinum Career 150 Index

Note: P
 ercentage of shareholding excludes treasury stock(447,492 shares).

(FY) Stock Price Movements

 Distribution of Shares by Number of Shares Held

Fiscal
years

High
(Yen)

Low
(Yen)

2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

5,800
7,180
6,880
8,640
8,170
9,730
11,1108,420
13,31015,725
9,815

2,900
3,130
3,070
5,430
6,010
6,080
4,810
5,814
7,024
7,970
7,380

Closing price(Yen)

Volatility
(%)

5,790
3,290
6,670
7,040
6,750
9,640
6,690
7,846
11,925
8,923
8,643

25.7
37.5
27.6
39.2
29.9
24.7
38.7
38.4
27.8
41.6
41.0

Less than 1,000 shares 1.27%

More than
1,000 shares 1.46%

Number of shares: 2,662,251(14,445 shareholders)Number of shares: 3,056,065(1,537 shareholders)More than 500,000 shares 77.32%

More than
5,000 shares 0.94%

Number of shares: 162,140,584(68 shareholders)Number of shares: 1,973,408(284 shareholders)More than
10,000 shares 5.70%
Number of shares:
11,943,472(387 shareholders)More than
100,000 shares 13.31%
Number of shares:
27,918,212(126 shareholders)Note: Volatility refers to the annualized standard deviation basedon daily closing prices.

 Total Shareholder Return (TSR*) (Annualized Rate)(%)

Past 1
Past 3 years Past 5 years Past 10 years
Investment year
periodCumulative/
AnnualAnnualAnnualCumulative
Cumulative
Cumulative
Annual rate
rate
rate
rate

Sysmex

-3.0

10.5

TOPIX
TOPIX
(Electricalequipment)

5.8

53.4 15.3

3.4

31.8

5.7 142.1

1.6

77.6 21.1

56.4

9.4 254.5 13.5

Individuals and others
15.59%

Financial institutions
23.65%
Financial
instrument firms
1.15%-9.9 -2.1 201.9 11.7
9.2

* TSR: Total shareholder return, including capital gains and dividends• Prepared by Sysmex based on data from Nikkei NEEDSFinancial QUEST• Base date of March 31, 2023
• TSR calculated on the assumption that dividends are reinvested
in shares

109 Sysmex Report 2023

 Composition of Shareholders

Activity Report andCorporate Overview

February 20, 1968

Corporate Governance

Established

Mid-Term Management Planand Initiatives

0

Number of Percentage
shares held of share(Thousands) holding (%)

Sysmex’s Value Creation

The Master Trust Bank of Japan, Ltd.
(Trust Account)
Custody Bank of Japan, Ltd. (Trust Account)
The Kobe Yamabuki Foundation
Nakatani Foundation for Advancementof Measuring Technologies inBiomedical Engineering
Nakatani Kosan, Ltd.
Kazuko Ietsugu
Taeko Wada
Rusoru, Ltd.
Tadako Nakatani
SSBTC CLIENT OMNIBUS ACCOUNT

900

About Sysmex

 Principal Shareholders (Top 10)

 Stock Price Range

Foreign investors
39.34%

Other Japanesecompanies
20.27%>>Sysmex Sustainability Data Book 2023 > Evaluations and Results Related to Sustainability P90

Sysmex Report 2023 110