Management Base
Value chain

Sysmex has built a solid business foundation centered on the IVD business, particularlyin the hematology field. Based on the management resources we have accumulated todate, we will further grow our existing businesses and invest in new businesses to establish growth drivers and strengthen our management base.

R&D

Management resources for creating value

Management Resources andBusiness Activities

R&D
Capabilities>>P59

Production

Distribution

Production andDistribution
Structure

Sales

Services
andsupportAcquiring
cash

Sales andService Structure

>>P61

>>P62

Intellectual
Property

StableFinancial
Foundation>>P67

Diverse Human Resources

Environmental Consideration

Corporate Governance and Risk Management>>P65

Investingin newbusinesses

>>P51

>>P63

>>P71, 75

Reinvesting to strengthen
our management base55

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56

Management Resources and Business Activities

We have established a long-term environmental vision and are working to
reduce the environmental burden throughout the value chain. In recent
years, given the importance of promoting integrated company-widemeasures to combat climate change, we have promoted disclosure basedon the TCFD. We have also set the goal of becoming carbon neutral,
reducing greenhouse gas emissions to zero in real terms by 2040, and weare promoting environmental conservation.

*As of April 2022

Intellectual Property

In line with our global business development, we actively engage in
intellectual property activities, such as patent and trademark filings incountries around the world to protect our business model, ensurecompetitive advantage, and prevent imitation. We are also working tostrengthen our governance of intellectual property in order to respect the
intellectual property rights of third parties as well as our own rights.

Production bases

7 locations
Reagents, chemical: 8 locations
biological: 6 locations
Instruments:

Sales and service bases

62 locations in 44 countries(Number of affiliated companies)

Area covered

190

More thancountries
and regions

Stable Financial
Foundation

We established a highly profitable business model involving the provisionof reagents and service and support in addition to testing instruments.
Leveraging this stable business model, we have invested proactively tobolster competitiveness in existing businesses, in new businesses tosupport our medium- to long-term growth, and in human resources and DX.

Results(as of March 31, 2022)
Percentage of employees overseas

60.4%
Percentage of female managers*

17.3%* Employees at director level or above(Entire Group)

Number of patents

298
Trademark applications filed

93
Cumulative free cash flow
over three years¥

78.6 billion(Fiscal 2019–2021)

Rating (Rating and Investment
Information, Inc.)AA-

Percentage reduction in CO2emissions from business activities

Cut

Corporate Governance

Environmental
Consideration

Since our establishment, we have built sales structures tailored toindividual regions, creating trust-based relationships with customers. To
access medical networks in more than 190 countries and regions aroundthe world, we are working to strengthen our sales and service structureand expand our product portfolio, not only by using our own resources but
also by leveraging alliances with global majors and other companies.

Diverse Human
Resources

We have acquired diverse human resources through business globalizationand M&A activities. We expect competition for global human resources tointensify. To address this, we will respond to the diversification of work
styles and further enhance our childcare and nursing care support systems
by creating a workplace environment where employees can work withpeace of mind, and introduce and operate a globally consistent humanresource management system.

R&D bases*

22 locationsin 8 countries

Main Growth-Supporting Resources and Issues

Management Resources andBusiness Activities

Sales and Service
Structure

To remain cost competitive on a global scale while maintaining highquality, we have used information and communication technologies tobuild an efficient structure for manufacturing instruments in Japan. At thesame time, we produce reagents on a global scale. We have factories at 14
locations in 10 countries, ensuring a stable provision of reagents tocustomers around the world. We are also working to strengthen our supply
chain management by building relationships with suppliers.

Management
Resources

Strategies for Value Creation

Production andDistribution
Structure

In addition to proprietary technologies, through M&A we have acquired
three technology platforms (for cells, proteins, and genes). In order to
respond to rapidly changing technological innovations, we haveestablished a global R&D base centered on Technopark (Kobe), and weengage in joint research with external organizations including universities,
medical and research institutions, and pharmaceutical companies. We aim
to develop and commercialize testing and diagnostic technologies thatoffer high clinical value.

Results(as of March 31, 2022)

What Sysmex Aims for

R&D Capabilities

Main Growth-Supporting Resources and Issues

Message

Management
Resources

44%(Base year: fiscal 2016)

Activity Report andCorporate Overview

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R&D Capabilities to Create High-Value-Added Testing and Diagnostic Technologies
Through the technological expertise and technology platforms we have cultivated since establishment, as well as our R&D bases aroundthe world, we have become more competitive in our existing businesses and are creating new testing and diagnostic technologies.

Key Progress

Resolution of medical issues through products and services
l Number of cancer genomes analyzed
1.6 thousand (Group companies in Japan)
l Number of breast cancer tests using the OSNA method
54 thousand

We maintained the number of cancer genomes analyzed at the previous
year’s level, and the number of breast cancer tests performed using the
OSNA method increased year on year. Also, market introductions
proceeded steadily. We launched new products in the hematology field, andincreased our immunochemistry reagent parameters in China.

Strategies for Value Creation

Since its establishment, Sysmex has acquired technologies related to instruments, reagents, and IT. By fusing these technologies,
we work to ensure the provision of testing data that is accurate—a critical consideration in testing. These technologies also
allow us to make improvements in response to customers’ needs
and to quickly determine the source of errors when they occur.
In addition to creating new tests and diagnostic technologies, we
provide high-value-added products and services that offer enhanced usability as well as a reduced environmental burden.

To raise laboratory productivity on the instrument front,
we are increasing analyzer processing capacity, providing
transport systems to enable the handling of more samples,and making instruments more compact. In addition to chemical reagents, we are focusing on the development of new
test parameters for bio-reagents, which are produced from
biologically derived substances. On the IT front, we werequick to promote the use of networks in medical settings,
developing our SNCS network in 1999. We began providing theCaresphere network solution in 2018. We are also developing
new applications and services for Caresphere that will increase
the efficiency and quality of testing.

Sysmex is working to develop and commercialize new diagnostic technologies using three technology platforms thatmeasure cells, proteins and genes. In addition to Technopark,
our hub, we have global R&D bases in Germany, the UnitedStates, China, Singapore and other countries, where we conduct R&D tailored to the needs of each region. To quickly
promote technological development and commercializationin the fast-changing healthcare field, we have also promoted
collaboration with external organizations through M&A, open
innovation and alliances.
By combining newly acquired technologies with thoseused in existing businesses, we aim to create new value that is
unique to Sysmex.

What Sysmex Aims for

Provision of High-Value-Added Products andServices Leveraging Technologies Related to
Instruments, Reagents, and IT

Message

Working to Create New Value

Related Materiality and Sustainability Target KPIs

Value-Generating Initiatives

R&D Base

Technopark(Japan)Cell measurement technologies

Protein measurement technologies
Technologies for detecting proteins in
the blood swiftly and with a high degreeof sensitivity

FluidsSysmex R&D Center
Europe GmbH (Germany)

R&D Center Asia Pacific(Singapore)

OpticsReagents
Reagents
Chemistry

Others, totaling 22 locationsin 8 countries (As of April 2022)(National Cancer Center Japan)

Development of IT
solutions to support
next-generation healthcare
and diagnostics(OPTiM Corporation)

Chemical reagents(Hematology, urinalysis)

Electronics*Established in April 2022

Joint development of acancer genome profilingsysteml Development of transport systemsl Higher throughput capacityl Greater compactness
l Environmental friendliness throughout the productlife cycle

Biological reagents(Hemostasis, immunochemistry, life science)

Biologyl Establishment of a bio-diagnostics reagent base (2019)l Development of new testing parametersl Creation of synergy within Group companies(HYPHEN BioMed, Oxford Gene Technology, and others)

IT

IT

Sysmex

Softwarel Development of new testing parametersl Development of concentrated reagents (hematology)
l Development of paper containers for reagents(hematology)

l Began offering the SNCS network service (1999)
l Provision of Caresphere network solution utilizing AI
technologies and ICT (2018)l Moving to online external quality control
l Introduction of virtual training (Sysmex America)n Higher laboratory productivity leading to more efficientmanagementn Reduced patient wait times
n Effective use of laboratory spacen Curtailed medical expenses through more efficient testingn Reduced environmental burden (decreases in electricity
consumption, waste and CO2 emitted during distribution)n Enhancing the quality of healthcare through the creation of new
testing parametersn Decreasing reagent changing frequency and reducing storage
space due to the use of concentrated reagentsn Reduced environmental impact (reduced CO2 emissions duringtransport and contribution to shift away from plastic)n Increased employment at various reagent factories

Activity Report andCorporate Overview(Juntendo University)

Comprehensive
agreement aimed at thedevelopment of new
diagnostics in the field ofdementia (Eisai Co., Ltd.)

Mechanics

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

Open Innovation(universities, medical and research institutions, pharmaceutical companies, and others)
Joint research related toimage analysis using AI
technology in the field ofhematology

Instruments

Wuxi Diagnostic Reagent
Development Center (China)

Gene measurement technologies

Instruments

Value Provided to Stakeholders1

Corporate GovernanceTechnologies for analyzing the number andtype of cells in blood and urine and facilitating
the analysis of intracellular information

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

Specializations
That Add Value

Global R&D Locations

Three Technology Platforms

Management Resources andBusiness Activitiesn Value Provided through R&D

n Higher quality leading to higher-quality testing datan Enhancing the quality of healthcare through the creation of new
testing parametersn Helping to conserve biodiversity by using alternatives toanimal-derived substances in reagentsn Ensuring the stability of testing datan Configuration of systems to prevent the interruption of testing(breakdown prevention and swift recovery)n More efficient laboratory operations(reduced travel time for product training)n Reducing CO2 emissions due to travel

1 n Value provided to customers (such as medical institutions) n Value provided to society

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Production and Distribution System Capable of Achieving High Quality and Stable Supply

Sales and Service Structure to Realize Global Growth

As a company that supports healthcare, we have established thorough quality control and a global production system to deliver
high-quality products to the medical field in a timely manner and without interruption.

Through our global sales and service network and by leveraging the strength in branding afforded by our No. 1 share of thehematology market, we are working to capture an even greater market share.

Key Progress

Related Materiality and Sustainability Target KPIs

Key Progress

A Reagent Production Structure to Support
Stable Supply

Sales and Service Network Covering More Than 190
Countries and Regions

Responding to Increasingly Stringent
Regulatory Systems

Medical settings require accurate test results, so analyzers must
be of the highest quality. For this reason, Sysmex has situatedits factories in the Hyogo prefecture in Japan, which is also its
hub for R&D and service and support. From here, we strengthen
cooperation within the Company and manufacture small lotsof highly varied, high-quality products. To win out in global
price competition, we are increasing production efficiency byintroducing leading-edge manufacturing and quality control
technologies utilizing ICT. In parts procurement, we strive tostrengthen relationships with suppliers by sharing information
on Sysmex’s business direction and procurement policies.

To perform tests, medical institutions require a stable supplyof the reagents they use on a daily basis. We provide a stablesupply of chemical reagents, which are used mainly in thehematology and urinalysis fields. We are promoting local production, and these reagents are produced at eight locations
around the world. We have set up our system so that individual factories can supply each other as needed in the eventof a disaster. In 2019, we established a bio-diagnostic reagent
base in Kobe to produce the biological reagents used in the
immunochemistry and life science fields. We provide a steadystream of high-quality, high-value-added products through an
integrated structure, from the development of reagent substances to their production and distribution.

The main reason for our global growth has been our ability toanticipate needs and quickly build business bases in individual
regions. We began developing our business globally soon after
our founding. We acquired the largest share of the global
hematology market in 2006, and we have established affiliatedcompanies in more than 40 countries. We are also expanding
our sales network in response to regional characteristics byforming alliances with major global companies and collaborating with local distributors.
In services and support, we use our network solution,
Caresphere, to link to customers’ instruments. This systemfacilitates the analysis of instrument operational logs to help
prevent breakdowns and enable the quality control of testing
data. In this way, we contribute to the efficiency of our customers’ testing operations and quality control.

In recent years, regulatory structures have been growing more
stringent in developed countries, and emerging markets havebeen introducing their own systems, so it has become important to gather information and respond swiftly. Sysmex isreinforcing its regulatory affairs and clinical development functions to enable the timely launch of new products and facilitate sales activities. We are achieving business diversificationand strengthening our
response to regulatory trends by enhancing our structures for
product evaluation
on a global basis andcultivating specialized
human resources.

Management Resources andBusiness Activities

An Instrument Production System Capable ofAchieving High Qualityn Major Production Initiatives

The expansion of our global sales network, among other factors, has led tocontinued growth in our share of the hematology market. Sales in emerging anddeveloping markets increased by more than ¥20.0 billion from the previous
fiscal year, owing to the establishment of a direct sales structure in India and an
overall recovery in the number of tests, which had fallen as a result of COVID-19.

Strategies for Value Creation

Our CSR survey response rate has been rising steadily. The rate was 81% in
fiscal 2017, and we have reached our fiscal 2023 target of 90%. By utilizing
online methods, the number of supplier training sessions rose by three year
on year, to five sessions.

What Sysmex Aims for

Responsible Provision of Products and Servicesl CSR survey response rate (Tier 1 raw material suppliers)90%
l Number of training sessions for suppliers
5 (non-consolidated basis)

Resolution of medical issues through products and services
55.7%
l Hematology market share
l Sales in emerging and developing markets ¥143.0 billion

Message

Related Materiality and Sustainability Target KPIs

Major Initiatives
Instrument
Productionn Direct Sales Ratios and Main Initiatives for Sales, Service and Support by Regionn An efficient production and distribution system that utilizes ICTn Establishment of a knockdown production system that works with

Direct Sales Ratio

100%

With a focus on our mainstay hematology field, we are working to develop new markets by expanding ourportfolio in the diagnostics business, providing cancer genomic medicine and other assay services, andexpanding into the medical robotics business.

75% or higher

We are conducting sales activities tailored to the needs of each country by establishing a direct sales
structure in North America and a sales structure utilizing alliances in Central and South America. In the
United States, where medical institutions are scattered over a vast area, we have consistently earned highmarks in customer satisfaction surveys for online training and other service innovation initiatives.

EMEA

70% or higher

In the EMEA region, which comprises more than 100 countries and includes both developed countries and emerging
markets, we have established a sales and service structure tailored to the characteristics of each region. In recent years,
we have been working to further strengthen our structure by establishing local subsidiaries, mainly in the Middle East,
including Egypt and Saudi Arabia, as well as by collaborating with alliance partners and expanding our direct sales area.

China

Approximately
1%

In China, we have established a sales network utilizing numerous local distributors to provide products allover the country in our mainstay hematology field and in the urinalysis, hemostasis, immunochemistry andlife science fields. In services and support, we have established an IoT-based system and regularly holdscientific seminars in Chinese to provide the latest medical information.

AP

50% or higher

In the Asia Pacific region, where economic levels and medical systems differ by country, subsidiaries in eachcountry take the lead in establishing sales and service systems that meet local needs. We also engage inactivities to improve medical standards, such as holding scientific seminars and supporting the quality
control and standardization of testing.

Japan
Reagent
Productionn Building a global production systemn Starting operation of a bio-diagnostic reagent base to internalize productionof substances and develop alternatives to animal-derived substancesn Conformance to international standards and obtaining various types ofAmericascertification (quality, environment)

BCP Enacted Due to a Fire at an Outsourced Distribution Center
To maintain a stable supply of products to the medical field, Sysmex has formulated a business continuity plan (BCP) for each function, including manufacturing and procurement, in
anticipation of natural disasters and infectious disease outbreaks such as COVID-19. When afire broke out in 2021 at an outsourced distribution center in Japan to which we had delegated product storage and other functions, we put our BCP into action. Based on the BCP, wetook measures to leverage the overall strength of the entire supply chain, including production and distribution within the Group. As a result, we were able to supply products to ourcustomers without interruption.

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SCM Division members responding to
the fire

Sysmex Report 2022

Activity Report andCorporate Overview

Main Initiatives

Corporate Governance(As of the End of
Fiscal 2021)

region-specific operations, such as in Chinan Conformance to international standards and obtaining various types ofqualification (quality, environment)

62

Environmental Considerations in Our Business Activities
By promoting initiatives to reduce environmental burdens through our business activities, we will fulfill oursocial responsibilities as a company that does business globally, while establishing a competitive advantage inthe market.

 Long-Term Environmental Objectives (Fiscal 2025)

Reducing water
consumption

Promoting resource
circulation

Protecting biodiversity

When using instruments

By 15%

By 15%

By 50%

In business activities

By 15%

Increase in the recycling rate
in business activities

93% or higher

Expand our portfolio line
using alternatives toanimal-derived substances

By 15%In January 2021, Sysmex expressed its support for the TCFD recommendations and disclosed information based on this framework.
We identified climate change risks and opportunities at a management meeting chaired by Sysmex’s chairman and CEO. These are reviewed twice each year by the Environmental Management Committee,
whose officers are the Company’s senior executive officers. The Environmental Management Committee and related departments take the lead in implementing the necessary initiatives for identified risks and opportunities.

Sysmex Report 2022

• Use of renewable energy• Lower CO2 emissions and water consumption
through better production efficiency• Utilize online methods(Remote training, webinars, etc.)

R&D

Procurement

Production

Sales,
Service andSupportDistribution

Formulate Green Procurement Standards
and promote green procurement

CO2 emissions associated with the
shipment of products• Procurement of raw materials and parts that havea lower environmental burden• Conducting CSR surveys• Shift from transport by air to ship
• Promote reagent production transfer tofactories overseas• Penetration of concentrated reagents(including survey items about environmental consideration)

Medicalinstitutions
Achieve lower
environmental burden
for medical institutions• Reduce electricity usedby products• Decrease wasten Examples of Initiatives to Decrease Environmental Burden through Business

Enhanced competitive advantage
Promote the shift to local reagent production
Sysmex promotes the transfer of reagent production to overseas plants. As a result, we can provide a stable supply to customers,
reduce costs and help reduce CO2 emissions by shortening transportation distances. We have established production bases forreagents used in the hematology and urinalysis fields in eight countries around the world.
New environmentally friendly hematology analyzers
Our new hematology sample transportation system modules that launched in 2021 offer higher processing capacity than previous
models. In addition, they are more compact and feature reduced power consumption.
l Space-saving: 15% reduction in widthl Reduced power consumption by approximately 40%
In addition, one of the modules has a flexible automatic shutdown function. This allows individually selected instruments to be
shut down automatically at night when the number of samples is low, thereby reducing power consumption.

+

Promote adoption of concentrated reagentsSome instruments in the hematology and immunochemistry fields make use ofreagents that are concentrated to 25 times the level of conventional reagents.
In addition to curtailing CO2 emissions, concentrated reagents are morecompact, so they require less material for containers and packaging, thus
saving resources, and laboratories accordingly generate less waste. We havealso transitioned from conventional polyethylene packaging to paper cartons
to conserve oil resources.
Using concentrated reagents means that reagents need to be replaced
less frequently. This saves storage space and contributes substantially to usability in other ways.

 Reagent with 25 Times Concentration
Reagent volume (L)
100
20L
20L

50

• Less environmental impact• Decreased frequency ofreagent changing• Reduction in storage space

20L

1/25

Activity Report andCorporate Overview

Response to TCFD Recommendations

63• Power savings, reduced reagent
consumption, etc.

Consideration for the environment
When using instruments

In business activities

When shipping

Reduce CO2 emissions from sales,
service and support activities

Corporate Governance

Reducing CO2
emissions(Base year: Fiscal 2016)

Reduce the environmental burden of
production activities

Management Resources andBusiness Activities

We have formulated the Sysmex Eco-Vision 2025 as along-term guideline for environmental management. We haveidentified “environmental consideration” as a materiality item,
and are promoting measures such as reducing CO2 emissions
and water consumption throughout the product life cycle andpromoting environmentally friendly procurement. We are also
disclosing information in response to the TCFD (Task Force on
Climate-Related Financial Disclosures) recommendations. In
2022, we set the goal of becoming carbon neutral (reducing
greenhouse gas emissions from our business offices to zero inreal terms) by 2040.
It is our social responsibility as a company to promote
such measures. At the same time, we create a competitive
advantage in the market by undertaking unique initiatives. To
help extend healthy lifespans for people around the world, we
will continue to take on the challenge of reducing our environmental burden from a medium- to long-term perspective.

Develop products that help reduce
environmental burdens

Strategies for Value Creation

With protection of the global environment becoming an urgent issue, as a company with global operations Sysmex recognizes that reducing the environmental burden of its businessactivities is a priority.
Climate change is expected to have a significant impact
on the healthcare market. Delays in addressing the issue of climate change will lead to an increase in people suffering fromheat stroke due to rising temperatures. Areas where tropicaldiseases such as malaria and dengue fever are endemic will
expand. Furthermore, air pollution will lead to a rise in respiratory diseases. Such a situation would increase medical costs
and put pressure on medical infrastructures, thereby affecting
the entire healthcare system.
In addition to climate change, other environmental issues
are also involved in Sysmex’s business activities, such as reducing water consumption, promoting recycling, and preserving biodiversity.

CO2 emissions when using instruments decreased due to a rise in sales ofpower-saving products and improvements in global CO2 emissions.
However, the rate of reduction for packaging materials deteriorated due toan increase in the use of packaging materials (paper containers) inconjunction with an increase in reagent sales.

What Sysmex Aims forEnvironmental Consideration
Cut 22%l Reduction of CO2 emissions (instruments)
Cut 1%l Reduction of CO2 emissions (shipping)(Base Year: Fiscal 2016)l Reduction of packaging and labeling materials Up 9%(Base Year: Fiscal 2019) Key Initiatives

Key Progress

Message

Related Materiality and Sustainability Target KPIs

20L

0

20L

4L

Conventional reagent Concentrated reagent

Initiative to Achieve Dry Ice-Free Transportation
Sysmex had been using charter and other special delivery services to transport reagents for genetic testing, demands a high levelof quality and temperature control. However, we faced numerous issues in relation transportation cost, flexibility in logistics,
and efficiency, and we were also considering improvements in the use of dry ice for cold storage. In 2021, Sysmex and Yamato
Transport developed a transportation model that is both ecofriendly and cost effective for the long-distance transportation ofpharmaceuticals and other products at the ultralow temperature range of -70°C without using any dry ice, which was previously
considered essential.

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64

Diverse Human Resources Supporting Sustainable Growth
Employees with strong aspirations to help solve social issues through business and who have wide-ranging backgrounds areimportant management resources that support sustainable growth, and are a source of strength for Sysmex.

Developmentof HumanResources

Key Progress

Realization of an attractive workplacel Percentage of Employees Overseas
60.4% (Groupwide)*l Percentage of Mid-Career Recruits in Managerial Posts
Approximately 40% (Sysmex Corporation)*l Percentage of Female Managers
17.3% (Groupwide)
8.7% (Sysmex Corporation)*l Percentage of Employees with Disabilities
2.31% (Group companies in Japan)

The percentage of female managers has increased, mainly in Japan, due tothe introduction of job-based HR management and “smart work” systems.
The percentage of overseas employees has also continued to rise due tothe promotion of global business development, including the establishmentof direct sales and service systems.

Diversity

Personnel
system• Overseas employee ratio• Female manager ratio• Mid-career recruitment
rate• Job-based HR management system• Rank/evaluation/remuneration system

Digitalization

Workplaceenvironment• Visualization of talent
information• Online recruitment/
training• Job matching

Supporting diverse
individuals indemonstrating
their abilities• Engagement

Competitivenessenhancement
Solutions for
medical issues

What Sysmex Aims for

Related Materiality and Sustainability Target KPIs

Message• Professional personnel• Investment in humanresource development• Comfortable workplaces• Occupational health and safety*Indicator other than sustainability target

Sysmex embraces diversity and inclusion, which involves creating a positive working environment for diverse human resources, and we promote these activities. One KPI in this areasis the promotion of women’s participation and advancement in
the workplace. While the percentage of female managers at theSysmex Group is 17.3% and rising each year, we need to improve this figure. We do not intend to raise this number hastily,
however. Instead, we will gradually increase the number offemale managers by building a comfortable work environment
and expanding training programs for skill development.
In addition, by creating a workplace where people withvarious sorts of physical, intellectual, and psychological disabilities can work in keeping with their characteristics, we aim
to foster an environment in which everyone, regardless of disability, can work and grow together enthusiastically and withpeace of mind. In Japan, Sysmex Harmony, a special subsidiary,provides assistance at our factories in the production of instruments and reagents. Sysmex Europe works with an organization that endeavors to support the independence of people
with disabilities. The company subcontracts packaging workin the manufacturing line of its reagent factory in Germany tosuch people.

Strengthening Global Human Resource Management

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Sysmex Report 2022

In fiscal 2020, Sysmex Corporation introduced a job-based
HR management system for people in managerial posts. Thissystem determines employees’ ranks based on their roles andwhat their jobs entail. In fiscal 2021, we expanded its application to the general workforce. Going forward, we will implement a grade policy, evaluation system, and human resource
development for all key positions in the Group according to
our Group-wide HR policy, thereby establishing consistentpersonnel management applied to all Group companies
across the globe. With regard to HR development, Sysmex is
implementing a variety of measures in individual regions. For
example we are fostering a sense of unity at business offices
and workplaces and developing the next generation of human resources, based on a Groupwide global human resource
development system.

Making Work More Comfortable under the New Normal
 Breakdown of Specializations among R&D Personnel
Liquids

OpticsElectronics

Mechanics

SoftwareEnd of fiscal 2021

Biochemistry

Sysmex believes that diversity and a sense of identity will
become more important values in the future, given the increase in the number of Millennial and Gen Z employees.
We have worked to make the workplace more sustainable, as
evidenced by the fact that more than 50% of male employees
at Sysmex Corporation take paid leave for childcare. Even so,
we see a continuing need to facilitate individuals’ own career
choices and working styles based on their sense of values andlife events.

LGBTQ Initiatives
In fiscal 2020, Sysmex Corporation established a partnership registration system, under which partners insame-sex relationships are recognized as spouses. We
are working to create a safe working environment for
LGBTQ people by providing information to deepen
understanding of sexual minorities.
In 2021, Sysmex Group companies incorporated
rainbow flags into the profile images of their official
social networking accounts (for a limited time) to show
their support for LGBTQ people.

Activity Report andCorporate Overview

The scope of Sysmex’s overseas operations is growing: overseas sales account for more than 80% of the total and our
percentage of overseas employees exceeds 60%. To support
global business development, at overseas bases we hire andassign local personnel who are familiar with local markets
rather than leading business promotion from Japan. We findthat respecting the culture and values of each country andregion leads to prompt and precise policy development. In
Japan, meanwhile, approximately 40% of Sysmex Corporation's
management personnel are mid-career hires. By utilizing theirbackgrounds and expertise developed in different organizations, these people bring a new sense of values to their work,
thereby strengthening Sysmex's competitive edge.
In human resource management, we are promoting theuse of DX to digitalize many aspects of recruitment, HR development, HR systems, and engagement surveys, as well as tovisualize employee talent information.

Introducing a New HR System and Enhancing HR
Development to Drive Sustainable GrowthBased on the Sysmex Declaration of a Healthy Company,
we have introduced a variety of measures in each region tobalance comfortable work environment and improved productivity. In fiscal 2021, Sysmex Corporation introduced a“smart work” system designed to help employees achieve agood work-life balance. The system adopts a hybrid work stylethat combines in-office work with telecommuting from home.
Our overseas Group companies, particularly Sysmex Europe
and other subsidiaries in the EMEA region, have earned external accolades on this front, receiving “Great Place to Work”
awards for their fulfilling work environments and high levels of
employee satisfaction.
Sysmex strives to achieve high productivity and performance and strengthen its corporate competitiveness byenabling a diverse workforce to demonstrate their abilities. At
the same time, we will work to resolve medical issues throughour business.

Corporate GovernanceIn recent years, the external environment has changed drastically due to the globalization of economic activities, the progress of digitalization, and a shrinking working population.
Sysmex’s business has grown more global and its portfolio has rapidly become more diverse. As a result, recruiting,cultivating, and continuing to provide an attractive workplace
for personnel with advanced specialties and next-generation
leaders have become an increasingly important issue.
Continuing to develop a work environment in which diverse
human resources with different cultures, beliefs, values, andbackgrounds can respect each other and maximize their abilities, and fostering a corporate culture in which employees canfeel at ease and demonstrate their abilities while maintaining a
sense of global unity, will directly contribute to strengthening
our external competitiveness.

With R&D personnel, our major strength lies in the factthat we have people with diverse and highly specialized knowledge that enables us to develop instruments, reagents, and IT
in-house for our different technology platforms: cells, proteins,and genes.

Management Resources andBusiness Activities

Promoting Diversity and Inclusion

Strategies for Value Creation

Efforts to Realize an Attractive Workplace

Changed official social network profile
images to show support for LGBTQ

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66

Strengthening Global Competitiveness and Supporting Sustainable Growth with Intellectual Property
In addition to strengthening our global competitiveness, we are working to create new value while protecting our technology,
designs, brand, and intellectual property so that customers can use Sysmex products with confidence.

Related Materiality and Sustainability Target KPIs
Resolution of medical issues through products and services
l Number of new patents: 298
l Total number of patents: 3,680

Key Progress
In line with business expansion, we strategically promote patentapplications, centering on hematology. As a result, the number of newpatents increased 3.8% from the previous fiscal year. The number of patentsrose 5.6% year on year, strengthening our global competitiveness.

Intellectual Property Underpinning our Global Development

Governance Related to Intellectual Property

Sysmex has been promoting the acquisition of intellectual
property globally in line with the expansion of its businessdomains and overseas development. As a result, 85% of ourpatents, utility model rights, design rights, and trademarks areheld overseas.
To strategically enhance the competitiveness of our cell,
protein, and gene measurement technology platforms, we holdpatent, utility model, and design rights. This intellectual property centers on Japan, the United States, Europe, and China,
taking into consideration market size, the risk of counterfeit
products, and the state of legal developments related to intellectual property.

Sysmex’s Global Compliance Code stipulates that we respect
the intellectual property of third parties as well as our own.
To comply with and utilize intellectual property laws and topromote our R&D and business, we have introduced a review
system for intellectual property. We strategically promote
intellectual property activities while evaluating our own intellectual property, as well as that of third parties.
We are also working to strengthen governance related
to intellectual property through regular meetings of theIntellectual Property Activities Promotion Committee, which
consists of people from our R&D and business divisions.
Annual intellectual property activities are also summarized
and discussed at meetings of the Managing Board and othermanagement meetings.
In addition, we disclose data on intellectual property activities, such as the number of new patent applications filed andthe number of patents held, as monitoring indicators for oursustainability targets under the mid-term management plan.

 Percentage of Patents Held by Technology Platform
Others 6%
Genes 8%End of fiscal 2021

Cells 55%

Proteins 31%

We work to secure trademark rights globally, including
in emerging and developing markets, to legally protect theSysmex brand and to prevent damage to health stemmingfrom the distribution of counterfeit products. In addition, we
have applied for trademarks for our corporate brand in 193
countries and regions.
 Regions Where We Have Filed for Trademarks, Patents,
Utility Model Rights and Design Rights

Establishing Environments and External
Assessments Related to Intellectual Property
Sysmex is expanding its intellectual property education system for R&D and business divisions, including
training based on work experience and division-specifictraining. We have also enhanced our internal patentaward and bonus systems to stimulate the creationof superior inventions. As a result of such improvements in our intellectual property environment, thisfiscal year in Japan we received the Medal with Purple
Ribbon in our mainstay hematology field. This is thesecond time we have received this award; the first wasin the urinalysis field in fiscal 2018. In June 2022, we
also received a National Commendation for Invention
for the third consecutive year, demonstrating a highlevel of external regard.

Corporate Governance
Sysmex recognizes that reinforcing corporate governance is an important management
issue. Based on the “Sysmex Way,” the corporate philosophy of the Sysmex Group, we
are working to maximize the corporate value of the overall Group by enhancing management soundness and transparency and raising management speed and efficiency.
In our efforts to shore up corporate governance over the years, we have establishedan Audit and Supervisory Committee, enhanced the Managing Board’s supervisory
function through the introduction of outside members, and evaluated the Managing
Board’s effectiveness. We also established a Compliance Committee and an internalreporting system, augmented a Groupwide risk management function, and engaged inother initiatives to strengthen our base with a view to sustainable growth.

Trademarks, patents, utility model rights and design rights
Trademarks, carefully selected patents, utility model rights, and design rights
Trademarks

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Sysmex Report 2022

Sysmex Report 2022

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