Consolidated Financial Results
for the Three Monthsof the Fiscal Year Ending March 31, 2023
<under IFRS>

August 9, 2022
Company Name: Olympus Corporation
Code Number: 7733
(URL: https://www.olympus.co.jp/)
Stock Exchange Listing: Prime Market of Tokyo Stock Exchange
Representative: Yasuo Takeuchi, Director, Representative Executive Officer, President and CEO
Contact: Takayuki Aoyagi, Vice President, Accounting Department
Phone: 03-3340-2111
Scheduled date to submit the Quarterly Securities Report:
August 9, 2022
Scheduled date to commence dividend payments:–
Presentation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:Yes (for analysts and institutional investors)(Figures are rounded off to the nearest million yen)

1. Consolidated Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023
(From April 1, 2022 to June 30, 2022)(1) Consolidated Results of Operations (cumulative)(% indicate changes from the same period of the previous fiscal year)
RevenueThree months ended
June 30, 2022
June 30, 2021(¥ million)
214,060
191,517

%
11.8
40.2

Three months ended
June 30, 2022
June 30, 2021

Profit attributable toowners of parent(¥ million)%
24,86033.0
18,690–Operating profit

Profit before tax(¥ million)
40,776
27,612(¥ million)
38,233
26,952

%
47.7
644.5

Total comprehensive
income(¥ million)%
88,679313.7
21,436–

Profit

%
41.9
900.4

Diluted earnings per share

(¥)
19.53
14.54

(¥)
19.52
14.53

As of
June 30, 2022
March 31, 2022

Equity attributable toowners of parent

Total equity(¥ million)
1,433,466
1,357,999

%
32.9
–

Basic earnings per share(2) Consolidated Financial Position
Total assets(¥ million)
24,922
18,746(¥ million)
582,155
511,362(¥ million)
581,125
510,168

Ratio of equity attributableto owners of parent
to total assets
%
40.5
37.6

2. Dividends
Annual dividends
First quarter

Second quarter(¥)

Fiscal year ended–
March 31, 2022
Fiscal year ending–
March 31, 2023
Fiscal year ending
March 31, 2023
(Forecast)
Note: Revisions of the forecast most recently announced: No

Third quarter

Year-end

Total

(¥)

(¥)

(¥)

(¥)

0.00

–

14.00

14.00

0.00

–

16.00

16.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023
(From April 1, 2022 to March 31, 2023)(% indicate changes from the same period of the previous fiscal year)
Revenue

Operating profit(¥ million)%(¥ million)
Full year
1,019,000
17.3
231,000
Note: Revisions of the forecast most recently announced: Yes

Profit attributable toowners of parent

Profit before tax%
50.1(¥ million)
225,000%
50.1(¥ million)
172,000

%
48.6

Basic
earnings per
share
(¥)
135.11* Notes(1) Changes in significant subsidiaries during the three months under review (changes in specified
subsidiaries resulting in the changes in scope of consolidation): No(2) Changes in accounting policies and changes in accounting estimates
1)
2)
3)

Changes in accounting policies required by IFRS: No
Changes in accounting policies due to other reasons: No
Changes in accounting estimates: No(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022
1,285,892,000 shares
As of March 31, 2022
1,299,294,333 shares2) Total number of treasury shares at the end of the period
As of June 30, 2022
12,830,930 shares
As of March 31, 2022
26,261,612 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2022
1,273,057,773 shares
Three months ended June 30, 2021
1,285,641,626 shares* Quarterly financial results reports are exempt from quarterly reviews conducted by certified public
accountants or an audit corporation.
* Proper use of the forecast of financial results, and other special matters(Caution concerning forward-looking statements)
The forward-looking statements contained in these materials are based on information currently available asof the date of release of these materials and on certain assumptions deemed to be reasonable. Actual
business and other results may differ substantially due to various factors.

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

Attached Material
Contents
1.

Qualitative Information Regarding Settlement of Accounts for the Three Months ..................................... 2(1) Explanation of Results of Operations ...................................................................................................... 2(2) Financial Position .................................................................................................................................... 6(3) Cash Flows .............................................................................................................................................. 6(4) Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements ..... 72.

Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto ........................... 8(1) Condensed Quarterly Consolidated Statements of Financial Position .................................................... 8(2) Condensed Quarterly Consolidated Statements of Profit or Loss ......................................................... 10(3) Condensed Quarterly Consolidated Statements of Comprehensive Income ......................................... 11(4) Condensed Quarterly Consolidated Statements of Changes in Equity .................................................. 12(5) Condensed Quarterly Consolidated Statements of Cash Flows ............................................................ 13(6) Notes to Condensed Quarterly Consolidated Financial Statements ...................................................... 15(Notes on premise of going concern) .................................................................................................... 15(Reporting entity) .................................................................................................................................. 15(Basis of preparation) ............................................................................................................................ 15(Significant accounting policies) ........................................................................................................... 15(Significant accounting estimates and associated judgments) ............................................................... 15(Business segments) .............................................................................................................................. 16(Assets held for sale) ............................................................................................................................. 17(Equity and other equity items) ............................................................................................................. 17(Dividends) ............................................................................................................................................ 18(Revenue) .............................................................................................................................................. 18(Other income and other expenses) ....................................................................................................... 19(Per-share data)...................................................................................................................................... 21(Financial instruments) .......................................................................................................................... 22(Business combinations)........................................................................................................................ 25(Contingent liabilities) ........................................................................................................................... 27(Subsequent events)............................................................................................................................... 27

1

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

1. Qualitative Information Regarding Settlement of Accounts for the Three Months(1)

Explanation of Results of Operations

Trends in overall business results
The global economy in the three months ended June 30, 2022, saw signs of recovery as the challenging
conditions created by the global spread of COVID-19 gradually eased as vaccinations progressed.
Nevertheless, impacts were felt from the lockdown in Shanghai and the war in Ukraine along with rising raw
material prices, supply chain constraints, and shortages of semiconductors and other components. The
Japanese economy saw a recovery, as the challenging conditions caused by COVID-19 were easing amid theimpact of the global economy and similar factors, but impacts were felt from the same factors affecting the
global economy.
Under such circumstances, the Olympus Group has been carrying out activities toward sustainable growthunder its business transformation plan “Transform Olympus” announced in January 2019, aiming to develop
itself as a truly global medtech company, and a medium- and long-term management strategy, which wasannounced in November 2019, based on “Transform Olympus.”
Based on this corporate strategy, Olympus Corporation is allocating management resources to the medical
field, mainly in Endoscopic Solutions Business and Therapeutic Solutions Business, and we are working tostrengthen our management base in order to achieve sustainable growth. As part of these efforts, on April 1,
2022, to achieve sustainable growth and increased profitability in the Scientific Solutions Business, we
implemented a company split to transfer Olympus Corporation’s Scientific Solutions Business to Evident
Corporation, a newly established wholly owned subsidiary.
Business results(1) Revenue

Three months ended
June 30, 2021
191,517Three months ended
June 30, 2022
214,060

Increase (Decrease)22,543(Millions of yen)
Increase (Decrease)ratio (%)
11.8

68,201

76,853

8,652

12.7

Selling, general andadministrative expenses

95,797

108,913

13,116

13.7(4) Share of profit (loss) ofinvestments accounted forusing equity method/Other
income/Other expenses

93

12,482

12,38913,322

27,612

40,776

13,16447.7(6) Finance income (loss)(660)(2,543)(1,883)–(7) Income taxes

8,206

13,311

5,105

62.2

(8) Profit attributable toowners of parent

18,69024,860

6,170

33.0

Exchange rate (Yen/U.S. dollar)

109.49129.57

20.08–

Exchange rate (Yen/Euro)131.96138.12

6.16–

Exchange rate (Yen/Renminbi)

16.96

19.58

2.62

–

(2) Cost of sales(3)(5) Operating profit(1) Revenue
Revenue increased by ¥22,543 million year on year to ¥214,060 million. This increase was due to an increase
in revenue in the Endoscopic Solutions Business and Therapeutic Solutions Business despite a decrease inrevenue in the Scientific Solutions Business and other businesses. Details are as described in “Analysis of theperformance by segment” below.

2Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(2) Cost of sales
Cost of sales increased by ¥8,652 million year on year to ¥76,853 million. The cost-to-sales ratio deteriorated
0.3 percentage points year on year to 35.9% due to surging procurement costs of raw materials such as
semiconductor materials.
(3) Selling, general and administrative expenses
Selling, general and administrative expenses increased by ¥13,116 million year on year to ¥108,913 million.
In particular, expenses associated with sales growth in the medical field and outsourcing costs related to thestrengthening of QARA and other business operation foundation increased. Personnel and other expenses
also increased in line with the strengthening of corporate functions due to a company split in the Scientific
Solutions Business.
(4) Share of profit (loss) of investments accounted for using equity method/Other income/Other expenses
The sum of share of profit (loss) of investments accounted for using equity method, other income, and otherexpenses amounted to ¥12,482 million, and the profit or loss improved by ¥12,389 million year on year.
Regarding other income, in the previous fiscal year, gain on step acquisition of Medi-Tate Ltd. ofapproximately ¥2,800 million and gain on sale of fixed assets of approximately ¥1,400 million wererecorded, but in the current fiscal year, gain on sale of fixed assets of approximately ¥16,400 million wasrecorded, which is an increase of ¥12,537 million year on year. Details on the gain on step acquisition ofMedi-Tate Ltd. are as described in the note (page 25) related to (Business combinations). On the other hand,regarding other expenses, in the previous fiscal year, an impairment loss of approximately ¥1,700 million foran equity investment in associates was recorded, but in the current fiscal year, expenses associated with thespin-off of the Scientific Solutions Business and the strengthening of systems following this of approximately¥2,400 million were recorded, which is an increase of ¥150 million.
(5) Operating profit
Reflecting the factors stated above, operating profit increased by ¥13,164 million year on year to ¥40,776
million.
(6) Finance income (loss)
Finance loss, which reflects finance income and finance costs, deteriorated ¥1,883 million year on year to¥2,543 million. The deterioration in finance loss was due mainly to the shift from foreign exchange gains toforeign exchange losses as a result of the U.S. dollar appreciating against various currencies.
(7) Income taxes
The increased profit before tax led income taxes to increase by ¥5,105 million year on year to ¥13,311
million.
(8) Profit attributable to owners of parent
Reflecting the factors stated above, profit attributable to owners of parent increased by ¥6,170 million year on
year to ¥24,860 million.
(Impact of foreign exchanges rates)
Compared to the same period of the previous fiscal year, the yen depreciated against the U.S. dollar, euro,
and renminbi. The average exchange rate during the current period was ¥129.57 against the U.S. dollar(¥109.49 in the same period of the previous fiscal year), ¥138.12 against the euro (¥131.96 in the same periodof the previous fiscal year) and ¥19.58 against the renminbi (¥16.96 in the same period of the previous fiscal
year), which caused revenue and operating profit to increase by ¥21,826 million and ¥8,320 million,
respectively, year on year.

3

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

Analysis of the performance by segment
Endoscopic Solutions Business

Revenue
Operating profit (loss)

Three months ended
June 30, 2021
100,01422,654Three months ended
June 30, 2022
116,857
24,834

Increase (Decrease)
16,843
2,180(Millions of yen)
Increase (Decrease)ratio (%)
16.8
9.6

Consolidated revenue in the Endoscopic Solutions Business amounted to ¥116,857 million (up 16.8% year onyear), while operating profit amounted to ¥24,834 million (up 9.6% year on year).
The gastrointestinal endoscopes field showed positive year-on-year growth in all regions, other than China
where there were restrictions on movement were implemented due to COVID-19, a lockdown in Shanghai,
causing supply chain disruptions and impacting on capital investment and case numbers in hospitals, and inparticular, sales in Europe and North America rose. By product, sales of the gastrointestinal endoscopic
system “EVIS X1” series were strong, while demand for the prior-generation general purpose uppergastrointestinal videoscopes and colorectal videoscopes was also firm, contributing to increased sales. The
ratio of the “EVIS X1” series to total sales also gradually increased.
The surgical endoscopes field also showed positive year-on-year growth in all regions, other than China
where there were restrictions on movement were implemented due to COVID-19, a lockdown in Shanghai,
causing supply chain disruptions and impacting on capital investment and case numbers in hospitals.
Especially, sales increased in Europe and North America, where sales of the surgical endoscopy system“VISERA ELITE II” were strong.
In the medical services field, all regions showed positive year-on-year growth due partly to stable sales ofexisting service contracts including maintenance services and an increase in new contracts.
The increase in operating profit in the Endoscopic Solutions Business was mainly due to the effect of theabsence of the previous year’s impairment loss and other expenses of approximately ¥1,700 million for anequity investment in associates accounted for using equity method located in Europe, despite the cost-to-sales
ratio deteriorating due to surging procurement costs of raw materials such as semiconductor materials, anincrease expenses associated with sales growth including sales expansion of EVIS X1 and outsourcing
expenses related to strengthening business operation foundation such as QARA, etc.,.
Therapeutic Solutions Business

Revenue
Operating profit (loss)

Three months ended
June 30, 2021
63,646
14,072Three months ended
June 30, 2022
72,365
13,357

Increase (Decrease)
8,719
(715)

(Millions of yen)
Increase (Decrease)ratio (%)
13.7
(5.1)

Consolidated revenue in the Therapeutic Solutions Business amounted to ¥72,365 million (up 13.7% year onyear), while operating profit amounted to ¥13,357 million (down 5.1% year on year).
In the GI-endotherapy field, all regions and product groups saw positive growth. In particular, sales in North
America and Europe, where the number of procedures has been increasing, were favorable. Furthermore,sales increased due to product groups for ERCP (Endoscopic Retrograde Cholangio Pancreatography), which
are used in endoscopic diagnoses and treatment of pancreatic duct, bile duct, etc., the sampling of biopsy
forceps, etc., which are used for collecting tissue for screening examinations, and product groups for ESD(Endoscopic Submucosal Dissection) and EMR (Endoscopic Mucosal Resection), which are used in lesion
resection.
The urology field achieved favorable performance mainly in North America and Europe, with sales being
expanded for resection electrodes for BPH (Benign Prostatic Hyperplasia) and lithotripsy machine for kidneystones “SOLTIVE SuperPulsed” Laser System. Gynecology products, which were grouped in othertherapeutic areas in the Therapeutic Solutions Business, have been included in urology in the Therapeutic
Solutions Business from the fiscal year ending March 2023.

4

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

The respiratory field saw positive growth, primarily in North America and Europe. Sales of the devices
mainly used for EBUS-TBNA (Endobronchial Ultrasound-guided Transbronchial Needle Aspiration) werefavorable.
In other therapeutic areas, sales were favorable mainly in energy devices. In particular, sales of“THUNDERBEAT” contributed.
Operating profit in the Therapeutic Solutions Business decreased due to the decreasing effect of the absenceof the previous year’s recording in other income of a gain on step acquisition of Medi-Tate Ltd. of around¥2.8 billion along with increased expenses such as promotion expenses despite recording increased revenue
during the period. For details on the gain on step acquisition of Medi-Tate Ltd., please see the note (page 25)
related to (Business combinations).

Scientific Solutions Business

Revenue
Operating profit (loss)

Three months ended
June 30, 2021
24,8291,873

Three months ended
June 30, 2022
21,925(1,609)

Increase (Decrease)(2,904)(3,482)(Millions of yen)
Increase (Decrease)ratio (%)
(11.7)–

Consolidated revenue in Scientific Solutions Business amounted to ¥21,925 million (down 11.7% year onyear), while operating loss amounted to ¥1,609 million (compared with an operating profit of ¥1,873 million
in the same period of the previous fiscal year).
In the life science field, budget execution at research centers and universities progressed smoothly, butrevenue decreased year on year due to delayed shipments to customers from shortages of parts such as
semiconductors and restrictions on movement implemented in China due to COVID-19, including theresulting supply chain disruptions accompanying a lockdown in Shanghai.
In the industrial field, despite the continuing trend of improvement in capital investment by our customers,
and strong sales in industrial endoscopes, for which our chief market of the aviation industry was recoveringstrongly, particularly in the Americas, revenue decreased year on year due to delayed shipments to customers
from shortages of parts such as semiconductors and restrictions on movement implemented in China due to
COVID-19, including the resulting supply chain disruptions accompanying a lockdown in Shanghai.
Operating profit declined in the Scientific Solutions Business due to decreased revenue and increased
expenses centered on personnel expenses as we strengthened our corporate functions due to the company
split.

Others

Revenue
Operating profit (loss)

Three months ended
June 30, 2021
3,028
(565)

Three months ended
June 30, 2022
2,913
(298)

Increase (Decrease)
(115)
267

(Millions of yen)
Increase (Decrease)ratio (%)
(3.8)–

In other businesses, the Olympus Group conducts R&D and exploratory activities for new businesses in
addition to engaging in the developing, manufacturing, and selling of biomedical materials, such as synthetic
bone filler, and orthopedic equipment.
Consolidated revenue in other businesses amounted to ¥2,913 million (down 3.8% year on year), while
operating loss amounted to ¥298 million (compared with an operating loss of ¥565 million in the same periodof the previous fiscal year).
Revenue decreased with the end of the sales of medical devices to the animal market, despite sales of FH
ORTHO SAS increasing in conjunction with the weakening impact from COVID-19. Operating profit inother businesses improved due to the progressing streamlining of costs despite decreased revenue.

5Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(2)

Financial Position[Assets]
As of the end of the first quarter under review, total assets increased by ¥75,467 million compared to the endof the previous fiscal year to ¥1,433,466 million due to the impact of weaker yen and other factors. Including
the impact of foreign exchange fluctuations and other factors, this increase was due mainly to an increase ininventories of ¥19,507 million, an increase in other current assets of ¥14,509 million due mainly to anincrease in unpaid consumption taxes, an increase in goodwill of ¥17,697 million due mainly to foreignexchange fluctuations in non-current assets, and increase of ¥12,138 million in property, plant andequipment, despite a decrease in cash and deposits of ¥16,160 million due mainly to the payment of corporate
taxes and the distribution of surplus.
[Liabilities]
Total liabilities increased by ¥4,674 million from the end of the previous fiscal year to ¥851,311 million. The
increase was due mainly to an increase in corporate bonds and borrowings of ¥8,667 million due mainly tothe impact of foreign exchange and an increase in other financial liabilities of ¥12,925 million, despite thepayment of corporate taxes resulting in a ¥14,151 million decrease in unpaid corporate taxes.
[Equity]
Total equity increased by ¥70,793 million from the end of the previous fiscal year to ¥582,155 million. The
increase was due mainly to a ¥63,705 million increase in other components of equity due mainly to foreignexchange calculation adjustments and the recording of ¥24,860 million in profit attributable to owners ofparent, despite the distribution of surplus.
Based on resolution of the Board of Directors meeting held on May 11, 2022, Olympus Corporation canceledtreasury shares on June 8, 2022. The impact of this cancellation is that treasury shares decreased by ¥23,271
million (contraction of negative amount stated in equity), and capital surplus decreased by ¥23,271 million.
The amount of the above cancellation was deducted from other capital surplus in capital surplus, but theamount that exceeds other capital surplus was deducted from retained earnings.
As a result of the foregoing, equity attributable to owners of parent to total assets increased from 37.6% as ofthe end of the previous fiscal year to 40.5%.
(3)

Cash Flows

Cash and cash equivalents at the end of the first quarter under review reached ¥286,412 million, a decrease of¥16,160 million from the end of the previous fiscal year. The following are the cash flows for the three months
ended June 30, 2022.
Cash flows from operating activities
Net cash used in operating activities for the three months ended June 30, 2022, was ¥26,860 million(compared with ¥23,681 million provided for the three months ended June 30, 2021). Cash flows fromoperating activities declined due to the payment of ¥39,736 million in corporate taxes, gain on sale andretirement of fixed assets in amount of ¥16,192 million made as an adjustment in association with the sale ofland in Hatagaya, etc., and an increase in inventories of ¥13,610 million, despite the increase from therecording of ¥38,233 million in profit before tax.
Cash flows from investing activities
Net cash provided by investing activities for the three months ended June 30, 2022, was ¥5,198 million(compared with ¥33,503 million used for the three months ended June 30, 2021). Cash flows from investing
activities increased mainly due to income of ¥19,387 million from the sale of property, plant and equipment
including land in Hatagaya, despite expenditures of ¥8,084 million from the acquisition of property, plant andequipment including production equipment, etc., and expenditures of ¥3,491 million from the acquisition of
intangible assets including research and development assets.
6

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

Cash flows from financing activities
Net cash used in financing activities for the three months ended June 30, 2022, was ¥21,748 million(compared with ¥38,955 million used for the three months ended June 30, 2021). This was mainly due to thepayment of ¥17,822 million for dividends.
(4)

Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements

In terms of our earnings forecasts for the fiscal year ending March 31, 2023, we have revised the forecasted
values announced in our “Consolidated Financial Results for the Fiscal Year Ending March 31, 2022” on
May 11, 2022, based on a consideration of the trend of yen depreciation in the current foreign exchange
market compared to our assumptions at the start of the period. Foreign exchange rates for the fiscal year
ending March 31, 2023, which are a precondition for the forecast, are expected to be ¥134.39 per U.S. dollar,¥139.53 per euro and ¥20.12 per renminbi.
(Millions of yen)Previous Forecast (A)968,000

206,000

200,000

Profitattributable toowners of parent
154,000

Revised Forecast (B)1,019,000

231,000

225,000

172,000

135.11

Increase (Decrease) (B-A)

51,00025,00025,00018,000–

Increase (Decrease) ratio
(%)

5.3

12.1

12.5

11.7

–

OperatingprofitRevenue

7

Profit before
tax

Basic earnings
per share
120.97Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto(1)

Condensed Quarterly Consolidated Statements of Financial Position(Millions of yen)

As of March 31, 2022
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Income taxes receivable
Other current assets
Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Retirement benefit asset
Investments accounted for using equity method
Trade and other receivables
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

8

As of June 30, 2022

302,572
178,428
10,269167,368
3,718
27,565689,920
4,685
694,605

286,412
182,199
12,677
186,875
12,85342,074
723,090–723,090

247,112
164,498
120,361
25,975
1,514
27,857
16,152
57,783
2,142
663,394
1,357,999

259,250
182,195
124,882
26,2091,404
30,18021,68962,411
2,156
710,376
1,433,466

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(Millions of yen)

As of March 31, 2022
LIABILITIES AND EQUITY
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

9

As of June 30, 2022

60,54752,281
26,01534,353
22,114
180,941
376,251

58,42353,63831,586
20,202
22,829176,179
362,857

333,846
64,60040,001
2,783
13,087
16,069470,386
846,637

341,156
71,954
41,8973,135
13,557
16,755
488,454851,311

124,643
91,239(45,589)
34,818305,057
510,168
1,194
511,362
1,357,999

124,643
91,374(22,267)
98,523288,852
581,125
1,030
582,155
1,433,466

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(2)

Condensed Quarterly Consolidated Statements of Profit or Loss
(Millions of yen)Three months ended
June 30, 2021

Three months ended
June 30, 2022

191,517
68,201
123,316
95,797214,060
76,853
137,207108,913

35

37

5,402
5,344
27,612423
1,083
26,952
8,206
18,746

17,9395,494
40,776722
3,265
38,233
13,311
24,922

Profit attributable to:
Owners of parent
Non-controlling interests
Profit18,69056
18,74624,86062
24,922

Earnings per share
Basic earnings per share
Diluted earnings per share¥14.54¥14.53¥19.53¥19.52

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted for using
equity method
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit before tax
Income taxes
Profit10

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(3)

Condensed Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)Three months ended
June 30, 2021

Three months ended
June 30, 2022

18,74624,922

(10)

(72)

59
49

52
(20)

2,441
49

64,597
(820)

151

–

Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income

2,641
2,690
21,436

63,77763,75788,679Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income

21,38056
21,436

88,61762
88,679ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Cash flow hedges
Share of other comprehensive income of associates
accounted for using equity method

11Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(4)

Condensed Quarterly Consolidated Statements of Changes in Equity
Three months ended June 30, 2021
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2021

394,326

1,154

395,480

18,69018,69056

18,746

Retainedearnings

124,643

90,835(98,048)(1,347)
2,690

–

–

Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury
shares–2,690

Transfer from retained
earnings to capital surplus

2,690
18,69056

21,436

(0)

(0)

(18)

18

0

0

(82,340)

82,340––82,337

Transfer from othercomponents of equity toretained earnings(15,428)(15,428)(82,337)

–

–

60

–

–

78

78

(60)

Share-based paymenttransactions

21,3802,690(0)Dividends from surplus

Balance at June 30, 2021

278,243

Other
componentsof equity

Other comprehensive
incomeTotal transactions withownersTotal equity

Share capital

TreasurysharesProfitComprehensive income

Total

Noncontrollinginterests

Capitalsurplus78(188)(15,616)–57

82,358(60)(97,705)(15,350)(188)(15,538)

124,643

90,892(15,690)

1,283

199,228

400,356

1,022

401,378

Three months ended June 30, 2022
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2022

510,168

1,194

511,362

24,86024,86062

24,922Retainedearnings

124,643

91,239(45,589)

34,81863,757–

Disposal of treasury shares
Cancellation of treasury
shares63,757

(1)

(1)

(1)

(52)

52

0

0

(23,271)

23,271––

23,295

Transfer from othercomponents of equity toretained earnings(52)

Share-based paymenttransactions

24,86088,61763,757–

Dividends from surplus
Transfer from retained
earnings to capital surplus

63,757–Purchase of treasury shares

Balance at June 30, 2022

305,057

Other
componentsof equity

Other comprehensive
incomeTotal transactions withownersTotal equity

Share capital

TreasurysharesProfitComprehensive income

Total

Noncontrollinginterests

Capitalsurplus62(17,822)(17,822)(23,295)

–

–

52

–

–

163

163

163

(226)

88,679(18,048)–

135

23,322(52)(41,065)(17,660)(226)(17,886)

124,643

91,374(22,267)

98,523288,852

581,125

1,030

582,155

12

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(5)

Condensed Quarterly Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss (gain) on step acquisitions
Interest and dividend income
Interest expenses
Loss (gain) on sale and retirement of fixed assets
Share of loss (profit) of investments accounted for using
equity method
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of subsidiaries
Other
Net cash used in investing activities

13(Millions of yen)Three months ended
June 30, 2021

Three months ended
June 30, 2022

26,952
15,739(2,826)(226)
1,037(1,179)38,233
17,686
–
(573)
1,503
(16,192)

(35)

(37)

20,168(5,178)(15,049)62
235(11,354)
28,34613987(846)(4,045)23,681

7,579(13,610)(3,434)(651)
309(17,234)
13,579543
30(1,276)(39,736)(26,860)(9,371)
1,811(4,970)(21,274)301(33,503)(8,084)
19,387(3,491)–(2,614)
5,198

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(Millions of yen)Three months ended
June 30, 2021

Three months ended
June 30, 2022

Cash flows from financing activities
Net increase (decrease) in short-term borrowings andcommercial papers(5,263)(87)

Repayments of lease liabilities
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities(4,131)(15,002)(15,428)
(188)
1,057
(38,955)(4,059)–(17,822)(226)
446(21,748)

14

27,250(48,763)
217,478
168,715(16,160)
302,572
286,412

Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

14

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(6)

Notes to Condensed Quarterly Consolidated Financial Statements(Notes on premise of going concern)
No items to report(Reporting entity)
Olympus Corporation is a joint stock company located in Japan. The address of its registered head office isHachioji-shi, Tokyo. Olympus Corporation’s condensed quarterly consolidated financial statements comprise
Olympus Corporation and its subsidiaries (hereinafter, the “Olympus Group”) and interests in Olympus
Corporation’s associates.
The Olympus Group is principally engaged in the manufacturing and sales of endoscopic, therapeutic,
scientific and other products. Details of each business are as described in Note “Business segments.”(Basis of preparation)(1) Statement of the condensed quarterly consolidated financial statements’ compliance with IFRSThe condensed quarterly consolidated financial statements of the Olympus Group have been preparedin accordance with IAS 34. Since the requirements for a “Specified Company of DesignatedInternational Accounting Standards” set forth in Article 1-2 of the “Regulation on Terminology,
Forms, and Preparation Methods of Quarterly Consolidated Financial Statements” are satisfied, theOlympus Group adopts the provisions of Article 93 of the same Regulation. The condensed quarterly
consolidated financial statements do not include all the information and disclosures required in theannual consolidated financial statements and should be used in conjunction with the Olympus Group’s
annual consolidated financial statements as of March 31, 2022.
These condensed quarterly consolidated financial statements were approved by Director,
Representative Executive Officer, President and CEO Yasuo Takeuchi, and Executive Officer and
CFO Chikashi Takeda on August 9, 2022.
(2) Basis of measurement
The Olympus Group’s condensed quarterly consolidated financial statements have been prepared onan acquisition cost basis, except for specific financial instruments measured at fair value.
(3) Functional currency and presentation currency
The Olympus Group’s condensed quarterly consolidated financial statements are presented in Japaneseyen, which is also Olympus Corporation’s functional currency, and figures are rounded off to thenearest million yen.
(4) Changes in presentation methods(Condensed Consolidated Statements of Cash Flows)
In the three months ended June 30, 2021, because “Loss (gain) on sale and retirement of fixed assets,”
which had previously been included in “Other” of “Cash flows from operating activities” increased inmonetary importance, it has been listed independently from the three months ended June 30, 2022. To
reflect this change in the presentation method, we have reorganized our Condensed Consolidated
Financial Statements for the three months ended June 30, 2021.
As a result, in the Condensed Consolidated Statements of Cash Flows for the three months ended June30, 2021, negative ¥12,533 million presented as “Other” in “Cash flows from operating activities” wasreorganized into “Loss (gain) on sale and retirement of fixed assets” of negative ¥1,179 million and“Other” of negative ¥11,354 million.
(Significant accounting policies)
The significant accounting policies adopted for the condensed quarterly consolidated financial statements of
the Olympus Group for the three months ended June 30, 2022 are the same as those applied for the fiscal year
ended March 31, 2022.
(Significant accounting estimates and associated judgments)
In preparing IFRS-based consolidated financial statements, the management is required to make judgments,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets,
liabilities, revenues and expenses. Actual results may differ from such estimates.
15

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

The estimates and underlying assumptions are reviewed on an ongoing basis and the effect is recognized in
the period in which the estimates are revised and in future periods.
The details of significant accounting estimates and associated judgments in the condensed quarterly
consolidated financial statements are unchanged from the contents described in the consolidated financial
statements for the previous fiscal year.
Although the impact of the spread of COVID-19 differs by region, the impact is currently expected tocontinue diminishing overall as vaccinations become available worldwide, and we have assumed that
Olympus Corporation’s sales activities will also begin to normalize.
(Business segments)(1) Overview of reportable segments
The reportable segments of the Olympus Group are the units for which separate financial information
is available and according to which reporting is periodically conducted to decide how to allocate
management resources and assess business performance.
The Olympus Group has established strategies and engages in business activities for the products andservices based on four segments: “Endoscopic Solutions,” “Therapeutic Solutions,” “Scientific
Solutions,” and “Others.” Reportable segments are determined in line with these segments.
The principal products and services of each reportable segment are as follows.
Reportable Segment

Principal products and services

Endoscopic Solutions Business Gastrointestinal endoscopes, surgical endoscopes, medical service
Therapeutic Solutions Business Gastroenterology devices, urology products, respiratory products, energy devices, ENT products,
gynecology products
Scientific Solutions Business

Biological microscopes, industrial microscopes, industrial endoscopes, non-destructive testing
equipment, X-ray fluorescence (XRF) analyzer

OthersBiomedical materials, orthopedic equipment(2) Revenue and business results for reportable segments
Revenue and business results of each reportable segment of the Olympus Group are as follows. The
accounting treatment used for reportable segments is as described in Note “(Significant accounting
policies).”Three months ended June 30, 2021
(Millions of yen)
Reportable Segment
Endoscopic
Solutions

Therapeutic
Solutions

Scientific
Solutions

Others

Total

Adjustment(Note 2)

Amount oncondensed
quarterly
consolidated
financialstatements

100,014

63,64624,8293,028

191,517–

191,517

–

–

6

109

115

(115)

–

Total revenue

100,014

63,646

24,835

3,137

191,632(115)

191,517

Operating profit (loss)

22,654

14,072

1,873

(565)

38,034(10,422)

27,612

Revenue
Revenue from outside
customers
Intersegment revenue(Note 1)

Finance income
Finance costs

423
1,083

Profit before tax

26,952Other items
Share of profit (loss) ofinvestments accounted forusing equity method
Depreciation andamortization
Impairment losses

83

(48)

–

–

35

–

35

7,983

3,877

1,716

385

13,961

1,778

15,739

1,659

–

–

–

1,659

–

1,659

Notes:
1. Revenue among segments is based on actual market prices.

16

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

2. Adjustment for operating profit (loss) is corporate expenses that mainly consist of elimination of transactions
among segments, as well as general and administrative expenses and fundamental research expenses that are
not attributable to reportable segments.

Three months ended June 30, 2022
(Millions of yen)
Reportable Segment
Endoscopic
Solutions

Therapeutic
Solutions

Scientific
Solutions

Others

Total

Adjustment(Note 2, 3)

Amount oncondensed
quarterly
consolidated
financialstatements

116,857

72,36521,9252,913

214,060–

214,060

–

–

–

102

102

(102)

–

Total revenue

116,857

72,36521,925

3,015

214,162(102)

214,060

Operating profit (loss)

24,834

13,357(1,609)(298)

36,284

4,492

40,776

Revenue
Revenue from outside
customers
Intersegment revenue(Note 1)

Finance income
Finance costs

722
3,265

Profit before tax

38,233

Other items
Share of profit (loss) ofinvestments accounted forusing equity method
Depreciation andamortization
Impairment losses

37

–

–

–

37

–

37

9,167

4,793

1,920

331

16,211

1,475

17,686

333

388

–

–

721

–

721

Notes:
1. Revenue among segments is based on actual market prices.
2. Adjustment for operating profit (loss) is corporate expenses that mainly consist of elimination of transactions
among segments, as well as general and administrative expenses and fundamental research expenses that are not
attributable to reportable segments.
3. Adjustment for operating profit (loss) includes gain on sale of fixed assets at Olympus Corporation of ¥16,395
million that is not attributable to reportable segments.

(Assets held for sale)In the first quarter of the fiscal year under review, sales procedures have been completed for Olympus
Corporation’s land and buildings that were classified as assets held for sale in the previous fiscal year.
(Equity and other equity items)
Three months ended June 30, 2021 (April 1, 2021 - June 30, 2021)(Cancellation of treasury shares)
Based on resolution of the Board of Directors meeting held on May 7, 2021, Olympus Corporation canceledtreasury shares on June 4, 2021. Due to this cancellation, treasury shares decreased by 71,620,630 shares
during the three months ended June 30, 2021.
The impact of this cancellation is that treasury shares decreased by ¥82,340 million (contraction of negative
stated amount in equity), and capital surplus decreased by ¥82,340 million.
The amount of the above cancellation was deducted from other capital surplus in capital surplus, but theamount that exceeds other capital surplus was deducted from retained earnings.
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)(Cancellation of treasury shares)
Based on resolution of the Board of Directors meeting held on May 11, 2022, Olympus Corporation canceledtreasury shares on June 8, 2022. Due to this cancellation, treasury shares decreased by 13,402,333 shares
during the three months ended June 30, 2022.
17

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

The impact of this cancellation is that treasury shares decreased by ¥23,271 million (contraction of negative
stated amount in equity), and capital surplus decreased by ¥23,271 million.
The amount of the above cancellation was deducted from other capital surplus in capital surplus, but theamount that exceeds other capital surplus was deducted from retained earnings.
(Dividends)
Dividends paid are as follows.
Three months ended June 30, 2021
Resolution
Board ofDirectors meeting
held on May 7,
2021

Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

Common stock

15,42812Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

Common stock

17,822

14

Record date

Effective date

March 31, 2021

June 3, 2021

Record date

Effective date

March 31, 2022

June 3, 2022

Three months ended June 30, 2022
Resolution
Board ofDirectors meeting
held on May 11,
2022(Revenue)
The organization of the Olympus Group basically consists of the Endoscopic Solutions Business, Therapeutic
Solutions Business, Scientific Solutions Business, and Others. Revenue recorded in these business segments
is stated as revenue, as these segments are the units for which separate financial information is available andaccording to which reporting is periodically conducted to decide how to allocate management resources andassess business performance. Revenue is geographically disaggregated by customer location. Relationshipbetween the disaggregated revenue and revenue of each reportable segment is as follows:
Three months ended June 30, 2021
(Millions of yen)
Endoscopic
Solutions
13,543

Therapeutic
Solutions
10,213

Scientific
Solutions
2,526

1,812

28,094

North America
Europe37,35325,06023,945
16,542

6,920
4,413

61
1,091

68,27947,106China
Asia and Oceania

13,717
8,590

6,952
5,187

5,509
3,860

14
50

26,192
17,687

Others

1,751

807

1,601

0

4,159

100,014

63,64624,8293,028

191,517

Japan

Total

18

OthersTotal

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

Three months ended June 30, 2022
(Millions of yen)
Endoscopic
Solutions
14,91444,432

Therapeutic
Solutions
10,781
28,654

Scientific
Solutions
2,045
7,505

EuropeChina

30,993
12,38819,261
6,836

Asia and Oceania

11,195

Others2,935
116,857

Japan
North America

Total

Others

Total

1,473
40

29,21380,631

4,202
1,756

1,321
7

55,777
20,987

5,469

4,930

72

21,666

1,364

1,487

0

5,786

72,36521,9252,913

214,060

The Endoscopic Solutions Business sells medical devices, including gastrointestinal endoscopes and surgicalendoscopes, as well as provides medical services such as lease and repair for these products, to customers
who are primarily medical institutions in Japan and overseas.
The Therapeutic Solution Business sells medical devices, including gastroenterology devices, urology
products, respiratory products, energy devices, ENT products, and gynecology products, to customers whoare primarily medical institutions in Japan and overseas.
The Scientific Solutions Business sells biological microscopes, industrial microscopes, industrial endoscopes,
non-destructive testing equipment, X-ray fluorescence (XRF) analyzers, etc. to customers who are mainly
research institutions and medical institutions in Japan and overseas.
Other businesses include R&D and exploratory activities for new businesses, in addition to sales ofbiomedical materials and orthopedic equipment.
Revenue from the sales of these products has been accounted for using the same accounting policy as thatapplied in the consolidated financial statements for the previous fiscal year.
(Other income and other expenses)(1) Other income
Major items of other income are as follows.
Three months ended June 30, 2021 (April 1, 2021 - June 30, 2021)(Gain on step acquisition)
Olympus Corporation recorded gain on step acquisition of ¥2,826 million in “Other income” due tothe acquisition of Medi-Tate Ltd. Details through a business combination. The details of thebusiness combination are described in (Business combinations).
(Gain on sale of fixed assets)
Olympus Corporation recorded gain on sale of fixed assets of ¥1,393 million in “Other income.”
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)(Gain on sale of fixed assets)
Olympus Corporation recorded gain on sale of land in Hatagaya of ¥16,395 million in “Other
income.”(2) Other expenses
Major items of other income are as follows.
Three months ended June 30, 2021 (April 1, 2021 - June 30, 2021)(Business restructuring expenses)
Olympus Corporation recorded ¥2,272 million for the cost related to promotion of the business
transformation plan “Transform Olympus” in “Other expenses.”(Impairment losses)
For equity investment in associates located in Europe, we estimated a recoverable amount of zeroand recorded impairment losses of ¥1,659 million.
19

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)(Business restructuring expenses)
Olympus Corporation recorded ¥1,011 million for the cost related to promotion of the business
transformation plan “Transform Olympus” in “Other expenses.”
Olympus Corporation recorded ¥2,365 million in “Other expenses” as expenses related to the spinoff of the Scientific Business, which was carried out for the purpose of establishing a globally
integrated business structure that matches the nature of the business and a management structurethat facilitates flexible and swift decision making, and the strengthening of systems following thespin-off.

20

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(Per-share data)(1) Basic earnings per share and diluted earnings per share
Three months ended June 30, 2021
(April 1, 2021 - June 30, 2021)

Three months ended June 30, 2022
(April 1, 2022 - June 30, 2022)

Basic earnings per share¥14.54¥19.53

Diluted earnings per share¥14.53¥19.52(2) The basis for calculating basic earnings per share and diluted earnings per share
Three months ended June 30, 2021
(April 1, 2021 - June 30, 2021)(Millions of yen)Three months ended June 30, 2022
(April 1, 2022 - June 30, 2022)

Profit used to calculate basic earnings per share and diluted earnings per share
Profit attributable toowners of parent
Profit not attributable tocommon shareholders ofparentProfit used to calculate
basic earnings per share
Adjustment to profit
Profit used to calculate
diluted earnings per share

18,69024,860––18,69024,860––18,69024,860The weighted average number of shares of common stock used to calculate basic earnings per share anddiluted earnings per share
The weighted average
number of shares ofcommon stock
Increase in number ofshares of common stock
Subscription rights toshares relating to stock
options
Common stock relating
to subsequent grant-type
restricted share-based
remuneration
Average number of sharesof diluted common stockduring the period

1,285,642 thousand shares

1,273,058 thousand shares

500 thousand shares

403 thousand shares

104 thousand shares

305 thousand shares

1,286,246 thousand shares

1,273,766 thousand shares

21

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(Financial instruments)
Fair value of financial instruments
Fair value hierarchy is categorized into the following three levels depending on the observability of
inputs used in the valuation technique for the measurement.
Level 1: Fair value measured at market prices (unadjusted) in active markets for identical assets or
liabilities
Level 2: Fair value measured using observable prices other than those categorized within level 1,
either directly or indirectly
Level 3: Fair value measured using a valuation technique which includes inputs that are not based on
observable market data
The Olympus Group recognizes transfers of financial instruments between the levels of the fair value
hierarchy as if they occurred at the end of each quarter of the fiscal year. There were no significant
financial instruments transferred between the levels for the fiscal year ended March 31, 2022 and thethree months ended June 30, 2022.
(1) Financial instruments measured at fair value
The methods for measuring major financial instruments measured at fair value are as follows.
(Other financial assets and other financial liabilities)
Listed shares are classified as level 1 and stated at market prices valued at the end of each fiscal
year.
Unlisted shares are classified as level 2 or level 3 and stated at the value obtained by using valuation
techniques such as the comparable company analysis method.
Derivative assets and liabilities are classified as level 2. Currency derivatives are stated at the value
based on forward exchange rates, and interest-rate derivatives are stated at the value obtained basedon observable data such as market interest rates, credit risks, and the period up to maturity.
The contingent consideration for business combinations is classified as level 3 and stated at theestimates of future payability.
The fair value hierarchy of financial instruments measured at fair value is as follows:
As of March 31, 2022
(Millions of yen)
Level 1
Financial assets
Financial assets measured at fair value
through profit or loss
Derivative assets
Equity securities and others
Financial assets measured at fair value
through other comprehensive income
Equity securities and others
Financial liabilities
Financial liabilities measured at fair value
through profit or loss
Derivative liabilities
Contingent consideration

22

Level 2

Level 3

Total

–
–

1,874
–

–
956

1,874
956

1,532

–

2,939

4,471

–
–

4,037
–

–
6,100

4,037
6,100

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

As of June 30, 2022
(Millions of yen)
Level 1
Financial assets
Financial assets measured at fair value
through profit or loss
Derivative assets
Equity securities and others
Financial assets measured at fair value
through other comprehensive income
Equity securities
Financial liabilities
Financial liabilities measured at fair value
through profit or loss
Derivative liabilities
Contingent consideration

Level 2

Level 3

Total

–
–

6,874
–

–
1,086

6,874
1,086

1,416

–

3,360

4,776

–
–

4,205
–

–
6,020

4,205
6,020

The changes in financial assets categorized within level 3 were as follows:(Millions of yen)Three months ended June 30, Three months ended June 30,
2021
2022
(April 1, 2021 - June 30, 2021) (April 1, 2022 - June 30, 2022)
Balance at April 1
Gains and losses (Note)
Profit or loss
Other comprehensive income
Purchases
Other

2,348

3,895

(600)
100
59
7

113
27
147
264

Balance at June 30

1,914

4,446

Note:
Gains or losses recognized in profit or loss are mainly included in “Finance income” or “Finance costs” in thecondensed quarterly consolidated statements of profit or loss. Gains or losses recognized in other comprehensive
income are included in “Financial assets measured at fair value through other comprehensive income” in thecondensed quarterly consolidated statements of comprehensive income.
In terms of the breakdown of gains or losses recognized in profit or loss, for financial products owned at the end ofeach quarter of the fiscal year, we recorded a loss of ¥600 million and a gain of ¥113 million in the first quarter ofthe previous fiscal year and the first quarter of the fiscal year under review, respectively.

The changes in financial liabilities categorized within level 3 were as follows:(Millions of yen)Three months ended June 30, Three months ended June 30,
2021
2022
(April 1, 2021 - June 30, 2021) (April 1, 2022 - June 30, 2022)
Balance at April 1
Business combinations
Settlement
Change in fair value
Other

3,608
2,148
–
(102)
(13)

6,100
–
(345)
(80)
345

Balance at June 30

5,641

6,020

23

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(2) Financial instruments measured at amortized cost
The measurement techniques for measuring the fair value of major financial instruments measured atamortized cost are as follows. These financial instruments are mainly classified into level 2.
(Cash and cash equivalents, trade and other receivables, and trade and other payables)
Account items to be settled in the short term are stated at their book value because their fair value isnearly equal to their book value.
Lease receivables are stated at the value obtained by calculating the present value of each leasereceivable categorized by a specific period, at discounted rates that take into account credit risks andthe period up to maturity.
(Other financial assets and other financial liabilities)
Account items to be settled in the short term are stated at their book value because their fair value isnearly equal to their book value.
(Bonds and borrowings)
Bonds and borrowings with fixed interest rates are stated at the value calculated at discounted rates
which would be applied to a similar issuance of bonds or similar new loans to generate future cash
flows.
Borrowings with variable interest rates are stated at their book value because their fair value isdeemed to be nearly equal to their book value, given that they are short-term borrowings reflecting
market interest rates, and their credit conditions have not significantly changed since the drawdown.
Short-term borrowings and commercial papers are stated at their book value since they are settled in
the short term and their fair value is nearly equal to their book value.
The carrying amount and fair value of major financial instruments measured at amortized cost were as
follows. Financial instruments whose carrying amounts approximate fair value are not included in thefollowing table.
(Millions of yen)
As of March 31, 2022
Carrying
amountFinancial assets
Lease receivables
Financial liabilities
Bonds
Borrowings

24

Fair value

As of June 30, 2022
Carrying
amountFair value

50,51750,51354,46054,456

180,322
145,903178,341
146,336

187,528
147,428

184,328
148,405

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(Business combinations)Three months ended June 30, 2021
(April 1, 2021 - June 30, 2021)(Acquisition of Medi-Tate Ltd.)(1) Outline of business combination
1) Name and description of acquired business
Name of acquired business

Medi-Tate Ltd. (hereinafter “Medi-Tate”)

Description of businessR&D and manufacturing of Therapeutic Solutions Businessproducts

2) Primary reason for business combination
Medi-Tate is a medical device manufacturer that researches, develops, and manufactures
minimally invasive therapeutic devices for benign prostatic hyperplasia (BPH). By adding MediTate’s minimally invasive treatment device for BPH to our Olympus product portfolio, we willcontribute to promoting the spread of minimally invasive treatment for diversifying prostate
diseases and improving QOL for patients, thereby further strengthening our competitive positionin the urology field.
3) Acquired ratio of holding capital with voting rights
100%4) Acquisition date
May 27, 2021
5) Acquisition method to govern the acquired company
Just prior to the acquisition date, Olympus Corporation owned 18.46% of Medi-Tate’s voting
shares through its consolidated subsidiary Olympus Winter & Ibe GmbH, and it acquired an
additional 81.54% for cash as consideration on the acquisition date through Olympus Winter & Ibe
GmbH, making it a wholly owned subsidiary.
(2) Acquisition-related expense
The acquisition-related expense of ¥168 million has been booked in “Selling, general andadministrative expenses.”(3) Gain on step acquisition
As a result of revaluing the equity interest of the acquired company held just prior to the acquisition
date at fair value on the acquisition date, we recognized a gain on step acquisition of ¥2,826 million.
Gains on step acquisition are recorded in “Other income” in the condensed quarterly consolidated
statements of profit or loss.

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Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(4) Fair value of consideration paid, assets acquired, and liabilities assumed as of the acquisition date(Millions of yen)AmountFair value of consideration paid
Cash
Fair value of equity interest held just prior to the acquisition dateContingent consideration
Total

22,6804,932
2,148
29,760Fair value of assets acquired and liabilities assumed
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Property, plant and equipment
Intangible assets
Other financial assets (non-current)
Deferred tax assets
Trade and other payables
Other current liabilities
Deferred tax liabilities
Other non-current liabilities
Fair value of assets acquired and liabilities assumed, net
Goodwill
Total

1,353
3
3
214
30
8,866
3
604
(46)
(675)
(2,039)(16)
8,300
21,46029,760

Based on the fair value of consideration paid on the acquisition date, we have allocated the assets
acquired and liabilities assumed. Furthermore, the allocation of consideration paid has been completed
in the previous fiscal year, and there is no material change in the amount from the initial provisionalamount. The balance of intangible assets of ¥8,866 million is comprised of technology-related assets
related to products of Medi-Tate, which are measured based on future sales growth rate, diminishingvalue rate, discount rate and other assumptions. The estimated useful lives of technology-related assets
are 14 years.
Goodwill mainly represents a rational estimate of the expected future excess earning power.
Furthermore, the amount of goodwill recognized does not include the amount that is expected to be
deductible for tax purposes.
(5) Contingent consideration
The contingent consideration is a milestone payment subject to the obtaining of approval fordevelopment made by Medi-Tate, and the payment is calculated by taking into consideration thepossibility of obtaining the approval for the development and time value of money. The payment limit
is US$40,000 thousand.
In terms of hierarchical level, the fair value of the contingent consideration is level three, which is thefair value calculated from valuation techniques that include inputs that are not based on observable
market data. The amount of change in fair value of the contingent consideration includes the recordingof the part based on changes in the time value of money as “Finance costs” and the part based onchanges other than the time value of money as “Other income” or “Other expenses.”

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Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

(6) Impacts on the Olympus GroupOlympus Corporation omits making a description concerning profit or loss information of the saidbusiness combination on and after the acquisition date as well as profit or loss information under theassumption that the said business combination was conducted at the beginning of the fiscal year underreview. This is because the amount of impact on condensed quarterly consolidated statements of profit
or loss due to such information is not material.
Three months ended June 30, 2022 (April 1, 2021 - June 30, 2022)
No significant business combinations.
(Contingent liabilities)
There are no significant changes from the items provided in the securities report for the previous fiscal year.
(Subsequent events)
Disposal of treasury shares
Olympus Corporation conducted the disposal of treasury shares as follows based on its restricted stock unit
(RSU) system and performance share unit (PSU) system.
In the fiscal year ended March 31, 2018, Olympus Corporation introduced the PSU system as a form of stockcompensation for Directors (excluding Outside Directors) and corporate officers through the fiscal year ended
March 31, 2019. Even after the transition to a company with a nominating committee, etc. in June 2019, we
continued the PSU system as a form of stock compensation for executive officers and corporate officers.
Moreover, to increase awareness among Directors (including Outside Directors) and executive officers of“maximizing corporate value and responding to the expectations of a wide range of stakeholders, we revised
our compensation system with a basic policy of providing compensation in line with roles andresponsibilities. As part of these efforts, in the fiscal year ended March 31, 2021, we introduce our RSU
system as a form of stock compensation for Directors (including Outside Directors) and executive officers.
Additionally, starting in the fiscal year ended March 31, 2022, we introduced the same RSU system as a formof stock compensation for corporate officers. This disposal of treasury shares is conducted in the form ofstock compensation to Directors, executive officers, and corporate officers receiving allotments based on the
RSU system and PSU system whereby shares of common stock of Olympus Corporation are paid in as
contribution in kind for the full amount of monetary remuneration claims against Olympus Corporation.

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Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2023

Outline of the disposal of treasury shares(1) Date of disposal

July 22, 2022
87,840 shares ofcommon shareof Olympus(2) Class and number of shares forbreakdown
disposal
RSU
16,567 shares
PSU
71,273 shares(3) Disposal price
2,680 yen per share(4) Total amount of disposal value
235,411,200 yen(i) RSU granted for the fiscal year ended March 2021 (FY2021-RSU)
Two retiring directors
3,082
shares
One retired executive officer
6,722
shares(ii) RSU granted for the fiscal year ended March 2022 (FY2022-RSU)
Two retiring directors and one non-resident director in
3,921
Japan
shares
One retired executive officer
768
shares(iii) Transformational FY22-RSU granted for the fiscal year ended(5) Disposal recipients, the number
March 2022of such recipients, and the number ofOne retired corporate officer
2,074
shares to be disposed ofshares(iv) PSU granted for the performance evaluation period starting fromthe fiscal year ended March 2020 and ending in the fiscal year ended
March 2022 (19PSU)
Three executive officers, three retired executive officers,
nine corporate officers and eight retired corporate
71,273
officers
shares(6) Other* Those officers retired in the fiscal year ended March 2020 and March
2021 are included in the retired executive officers and retired corporate
officers.
Olympus has submitted notice of securities for the disposal of treasury
shares in accordance with the Financial Instruments and Exchange Act.

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