Consolidated Financial Statements and Notes
For the Fiscal Year Ended March 31, 2024
(from April 1, 2023 to March 31, 2024)

INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS
Independent Auditor’s Report...............................................................................................................................................

2

Consolidated Statement of Financial Position as of March 31, 2024....................................................................................

9

Consolidated Statement of Profit or Loss for the year ended March 31, 2024 .....................................................................

11

Consolidated Statement of Comprehensive Income for the year ended March 31, 2024 .....................................................

12

Consolidated Statement of Changes in Equity for the year ended March 31, 2024 ..............................................................

13

Consolidated Statement of Cash Flows for the year ended March 31, 2024.........................................................................

15

Notes to the Consolidated Financial Statements ...................................................................................................................

17

- 1 -

Independent Auditor’s Report

The Board of Directors
Olympus Corporation

The Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of Olympus Corporationand its subsidiaries (the Group), which comprise the consolidated statement of financial position
as at March 31, 2024, and the consolidated statements of profit or loss, comprehensive income,changes in equity, and cash flows for the year then ended, and notes to the consolidated financial
statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2024, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with International Financial Reporting Standards (IFRSs).
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of theGroup in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on these matters.
Valuation of goodwill of the Therapeutic solutions segment
Description of Key Audit Matter

Auditor’s Response

As described in (2) Impairment test for
goodwill in Note 16 “Impairment of Nonfinancial Assets” to the Consolidated Financial
Statements, Olympus Corporation (theCompany) performed an impairment test for
goodwill related to the Therapeutic solutions

In considering the valuation of goodwill of the
Therapeutic solutions segment, we performed
the following audit procedures, among others.


- 2 -

We made inquiries of management anddiscussed the following matters to gain ansegment (cash generating unit) in the fiscal
understanding of strategies in theyear ended March 31, 2024. As of March 31,
Therapeutic Solutions Business, which is2024, the amount of goodwill for thethe basis of the business plan having a
Therapeutic solutions segment was ¥147,910
maximum term of five years.
million (9.6% of total assets of Consolidated• The consistency between the strategy
Statement of Financial Position).
announced by the Company in May 2023
In performing the impairment test forand the strategies in the Therapeutic
goodwill related to the Therapeutic solutions
Solutions Businesssegment, the Company measures the• The impact of the discontinuation of therecoverable amount based on value in use.
manufacture and sale of VMT’s products on
Value in use is determined by discounting to
the strategies in the Therapeutic Solutions
present value the cash flows based on theBusinessbusiness plan approved by management• The impact of the progress and future
having a maximum term of five years as welloutlook of the improvement plan for theas the terminal value, which is based on thefindings raised in the warning letters on
growth rates after the term of the business plan.
development activities and market entry
The main assumptions in determining value intiming for new products and, in addition,
use are as follows.
estimates of future costs related to
improvement activities• Growth rate and operating profit ratio in
the business plan
Further, we reviewed minutes of board of• Growth rate for the period after the term
directors and other meetings.
of the business plan We compared the growth rate and• Discount rate
operating profit ratio used in the businessplan with past results, market forecasts,
These main assumptions involve uncertainty
and available external data. We
associated with management estimates andperformed our own sensitivity analysis inhave a significant impact on determining
which a certain level of stress was placedvalue in use. Of these assumptions, theon risk factors included in thegrowth rate and the operating profit ratio inassumptions.
the business plan are based on growth We involved valuation specialists fromthrough the expansion of the Company’s
our network firms and performed theportfolio of treatment tools and devices, andfollowing procedures.
dissemination of procedures. However, these•
We compared the growth rate for theare affected by the external environment,
period after the term of the businesssuch as regulations on medical devices in theplan with market forecasts andcountries and regions where the Company
available external data.
operates its Therapeutic Solutions Business,•
Regardingthe discount rate, we
and competition with products of othercompared the discount rate with thecompanies.
range set by the valuation specialists
Considering that, in the fiscal year ended
and evaluated the reasonableness of the
March 31, 2024, the Company continued withmethod used to determine the discountthe improvement plan implemented inrate and the reliability of external data
response to the warning letters received fromused as the basis of determination.
the United States Food and Drug
• We evaluated the reasonableness of the
Administration (FDA) in the fiscal year ended
method used to determine value in use.
March 31, 2023 and made the decision to
discontinue the manufacture and sale ofproducts developed by Veran Medical
Technologies, Inc. (VMT) acquired as part of- 3 -Company’s Therapeutic Solutions Businessin a prior fiscal year, which impacted thebusiness plan and assets of the Therapeutic
Solutions Business, we determined thevaluation of goodwill of the Therapeutic
solutions segment to be a key audit matter.
Recognition of impairment loss on assets related to Veran Medical Technologies, Inc.
Description of Key Audit Matter

Auditor’s Response

As described in “(1) Impairment losses” under
Note 16 “Impairment of Non-financial Assets”
to the Consolidated Financial Statements, theCompany made the decision in the fiscal year
ended March 31, 2024 to discontinue the
manufacture and sale of products developed byconsolidated subsidiary VMT.
The Company previously performed
impairment testing for the fixed assets related
to VMT manufacturing and sales as part of acash-generating unit within the Therapeutic
solutions segment in consideration of thesynergies with other assets in this segment.
However, after deciding to discontinue the
manufacture and sale of products developed by
VMT, the Company individually performed
impairment tests for the fixed assets generated
from the acquisition of VMT rather thantesting for impairment at the segment level,
and as a result determined that the fair valueless the cost of disposal was zero. Thus, theCompany recorded impairment loss on fixed
assets of ¥41,704 million, including goodwillof ¥20,227 million, as “other expenses”.

In considering the recognition of impairment
loss on assets related to VMT, we performed
the following audit procedures, among others.

Considering that separation from the cashgenerating unit to which the assets belong
involves significant judgments bymanagement and that the amount of related
impairment loss recorded as a result has asignificant impact on the consolidated
financial statements, we determined therecognition of impairment loss on assets
related to VMT to be a key audit matter.

We made inquiries of management andreviewed minutes of board of directors
and other meetings to obtain anunderstanding of the strategic reasons fordiscontinuing the manufacture and sale of
VMT’s products.
 We evaluated the reasonableness of thescope and amount of goodwill subject toimpairment in consideration of the impactof this decision on the Therapeutic
solutions segment, which is the related
cash-generating unit.
 In order to evaluate whether impairment
loss was appropriately measured, we
involved component auditors andperformed the following procedures.
• We reviewed VMT’s trial balance andcompared the account balances of fixed
assets with the amount recorded for
impairment to test whether VMT’s
fixed assets were comprehensively
considered for impairment.
• With regard to the recoverable
amount, we considered thereasonableness of evaluating the fairvalue less the cost of disposal as
zero.

- 4 -

Valuation of deferred tax assets
Description of Key Audit Matter

Auditor’s Response

The Company recorded deferred tax assets of In order to evaluate the adequacy of the¥72,324 million on the consolidated statement determination of the recoverability of deferredof financial position as of March 31, 2024 and, tax assets, we performed the following audit
as described in “(1) Deferred tax assets and procedures, among others.
liabilities” under Note 37 “Income Taxes” to
the Consolidated Financial Statements,
 We compared prior year business plansdeferred tax assets before being offset againstwith actual results to evaluate thedeferred tax liabilities totaled ¥111,159
effectiveness of the estimation process
million.
used in formulating the business plan,
As described in “(21) Income taxes” underwhich forms the basis for expected“3. Material Accounting Policies” in Notes tofuture taxable profit.
the Consolidated Financial Statements, the We compared the growth rate andCompany and some of its subsidiaries haveoperating profit ratio used in the
adopted the Group Relief System andbusiness plan with past results, market
recognize deferred tax assets to the extent that
forecasts, and available external data.
it is probable that taxable profits will be We made inquiries of management
available against which deductible temporary
regarding the estimates of future costs
differences, unused tax credits carried
related to improvement activities inforward, and tax losses carried forward can be
response to the findings raised in theutilized.
warning letters and, in order to
The estimate of the amount of taxable profit
evaluate the impact of these costs onused in determining the recoverability ofthe taxable profit in the future, wedeferred tax assets is based on the business
reviewed materials prepared by theplan developed by management, and theCompany.
growth rate and operating profit ratio, which
 In order to evaluate the reasonablenessare the main assumptions of this plan, involveof the schedule of the fiscal years injudgments by management. In particular, inwhich the balances of deductible
the fiscal year ended March 31, 2024, thetemporary differences and unused tax
Company continued with the improvement
losses are expected to reverse, weplan implemented in response to the warning
reviewed scheduling-related materials
letters received from the United States Foodprepared by the Company andand Drug Administration (FDA) in the fiscal
compared these materials with theyear ended March 31, 2023, and judgments bytiming of reversal of deductible
management with regard to the progress andoutlook of this improvement plan have an
temporary differences and unused tax
impact on the main assumptions.
losses.
Therefore, we determined the valuation ofdeferred tax assets to be a key audit matter.

- 5 -Other Information
The other information comprises the information included in disclosure documents that contains
audited consolidated financial statements but does not include the consolidated financial
statements and our auditor’s report thereon.
We have concluded that other information does not exist. Accordingly, we have not performed any
work related to other information.
Responsibilities of Management, the Audit Committee for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with IFRSs, and for such internal control as management determines isnecessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by IFRSs, mattersrelated to going concern.
The Audit Committee is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:•

Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

•

Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of theconsolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

- 6 -

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Group’s ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent theunderlying transactions and events in a manner that achieves fair presentation in accordancewith IFRSs.

•

Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with the ethicalrequirements regarding independence that are relevant to our audit of the consolidated financial
statements in Japan, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken toeliminate threats or safeguards applied to reduce threats to an acceptable level.
From the matters communicated with the Audit Committee, we determine those matters thatwere of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.

Fee-related Information
The fees for the audits of the financial statements of Olympus Corporation and its subsidiaries
and other services provided by us and other EY member firms for the year ended March 31,
2024 are 1,287 million yen and 209 million yen, respectively.

- 7 -Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Ernst & Young ShinNihon LLC
Tokyo, Japan
August 7, 2024

Takahiro Yamazaki
Takahiro Yamazaki
Designated Engagement Partner
Certified Public Accountant

Tetsuya Yoshida
Tetsuya Yoshida
Designated Engagement Partner
Certified Public Accountant

Mitsuharu Konno
Mitsuharu Konno
Designated Engagement Partner
Certified Public Accountant- 8 -Consolidated Statement of Financial Position
Olympus Corporation and Consolidated Subsidiaries
As of March 31, 2024
(Millions of yen)
Notes
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
methodTrade and other receivables
Other financial assets
Deferred tax assets
Other non-current assets

2023

7,35
8,35
10,35
9

2024

11

169,329
174,672
11,360162,994
15,96022,421

340,933
197,599
9,862
190,030
36,68625,175

12

556,736
169,621800,28555

726,357

800,340

238,731
181,324
116,757
27,028259,968
180,331
91,96136,8151,010

479

36,98021,476
156,543
2,495

55,76434,14672,324
2,088

13
14
14
23

8,35
10,35
37
11

Total non-current assets
Total assets- 9 -782,344733,876

1,508,701

1,534,216

(Millions of yen)
Notes
LIABILITIES AND EQUITY
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities

2024

62,91949,97023,23599,567
19,111
163,837

61,85569,98827,67338,65831,318202,203418,639431,695

43,253–461,892

431,695

290,087
61,66820,416
2,912
12,29818,194

229,628
62,23820,586
2,362
11,98918,532

Total non-current liabilities

405,575

345,335

Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Other components of equity related todisposal group held for sale
Retained earnings

867,467

777,030

24
24
24
24

124,643
92,150(28,086)
77,280124,643
92,032(102,017)
149,127

24

3,034

–

24

371,064

493,401

640,0851,149

757,186–

Subtotal
Liabilities directly associated with assets
held for sale
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities

17,35
18,35
19,35

2023

20
21
12

18,35
19,35
23
20
37
21

Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity- 10 -

641,234

757,186

1,508,701

1,534,216

Consolidated Statement of Profit or Loss
Olympus Corporation and Consolidated Subsidiaries
For the fiscal year ended March 31, 2024
(Millions of yen)
Notes
Continuing operations
Revenue
Cost of sales

6,28
9,13
14,23

Gross profit
Selling, general and administrative expenses

13,14
23,29

2023

2024

881,923

936,210285,074

311,087

596,849

625,123

420,547

473,231

Share of profit (loss) of investments accounted forusing equity method
Other income
Other expenses

6

491

(358)

30
16,30

23,706
13,8904,666
112,602

Operating profit
Finance income
Finance costs

6
31
31

186,609
3,860
8,175

43,5982,562
10,30637

182,294
44,30435,854
8,881

137,990

26,973

Profit before tax
Income taxes
Profit from continuing operations
Discontinued operation
Profit from discontinued operation

5,623

215,956

Profit41

143,613242,929

Profit attributable to:
Owners of parent
Non-controlling interests

143,432
181

242,566363

143,613242,92932
32
32

108.784.44
113.2221.93
177.98199.9132
32
32

108.654.43
113.0821.88
177.56
199.44

ProfitEarnings per share
Basic earnings per share (yen)Continuing operations
Discontinued operation
Basic earnings per share
Diluted earnings per share(yen)Continuing operations
Discontinued operation
Diluted earnings per share- 11 -

Consolidated Statement of Comprehensive Income
Olympus Corporation and Consolidated Subsidiaries
For the fiscal year ended March 31, 2024
(Millions of yen)
Notes
ProfitOther comprehensive income
Items that will not be reclassified to profit or
loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans

2023

2024
143,613242,929

33

(84)

(20)

33

7,320

4,682

33

7,236

4,662

33

47,09369,01133(1,280)(177)

3345,813

68,83453,04973,496Comprehensive income

196,662

316,425

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

196,481181

316,062363

196,662

316,425

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

Comprehensive income- 12 -

Consolidated Statement of Changes in Equity
Olympus Corporation and Consolidated Subsidiaries
For the fiscal year ended March 31, 2023
(Millions of yen)
Equity attributable to owners of parent

Notes

Balance at April 1, 2022

SharecapitalCapitalsurplusTreasurysharesOther
components ofequity124,643

91,239(45,589)

34,818Other
components ofequityrelated todisposalgroup held
for sale

Retainedearnings

Total–

305,057

510,168

1,194

511,362

143,432

143,432

181

143,613

ProfitOther comprehensive
income53,049–Comprehensive income
Share repurchase24

Disposal of treasury
shares24

Cancellation oftreasury shares

24

Dividends from surplus

26

Transfer from retained
earnings to capitalsurplus––53,04953,049–196,481181

196,662(50,003)(50,003)

(254)

254

0

0

(67,087)

67,087––

67,156(7,553)
27

143,432

53,049(50,003)

Transfer from othercomponents of equity
to retained earnings
Share-based paymenttransactions

Noncontrolling Total equity
interests

1,096(17,822)(17,822)(67,156)

–

–

7,553

–

–

1,261

1,261

–

–

165

Transfer to othercomponents of equity
related to disposalgroup held for sale

(3,034)

3,034

(226)

(18,048)

Equity transactions
with non-controllinginterests
Total transactions withowners–911

17,503(10,587)

3,034(77,425)(66,564)(226)(66,790)

Balance at March 31,
2023

124,643

92,150(28,086)

77,2803,034

371,064

640,0851,149

641,234- 13 -

For the fiscal year ended March 31, 2024
(Millions of yen)
Equity attributable to owners of parent

Notes

Balance at April 1, 2023

SharecapitalCapitalsurplusTreasurysharesOther
components ofequity124,643

92,150(28,086)

77,280

Other
components ofequityrelated todisposalgroup held
for sale

Retainedearnings

Total

3,034

371,064

640,0851,149

641,234

242,566

242,566363

242,929

ProfitOther comprehensive
income–Comprehensive income
Share repurchase24

Disposal of treasury
shares24

Cancellation oftreasury shares

24

Dividends from surplus

26

Transfer from retained
earnings to capitalsurplusTransfer from othercomponents of equity
to retained earnings
Share-based paymenttransactions––

76,530(3,034)76,530(3,034)

242,566

316,062

73,496363

316,425(180,002)(180,002)

(43)

43

0

0

(104,795)

104,795––(4,683)1,457

Equity transactions
with non-controllinginterests

73,496(180,002)

104,855

27

Noncontrolling Total equity
interests(20,057)(20,057)(104,855)

–

–

4,683

–

–

2,690

2,690

1,233

(1,592)(183)(20,240)(1,592)(1,329)(2,921)

Total transactions withowners–(118)(73,931)(4,683)–(120,229)(198,961)(1,512)(200,473)

Balance at March 31,
2024

124,643

92,032(102,017)

149,127–

493,401

757,186–

757,186

Note:

Details of Share capital, Capital surplus, Retained earnings, Treasury shares and Other components of equity are describedin Note “24. Share Capital and Other Components of Equity.”- 14 -

Consolidated Statement of Cash Flows
Olympus Corporation and Consolidated Subsidiaries
For the fiscal year ended March 31, 2024
(Millions of yen)
Notes
Cash flows from operating activities
Profit before tax
Profit before tax from discontinued operation
Depreciation and amortization
Impairment losses
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
Gain on transfer of the Scientific Solutions
Business
Decrease (increase) in trade and otherreceivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provisions
Other

2023

2024

182,294
7,413
66,741
2,498(3,971)
6,037(15,757)

35,854348,276
65,94064,568(2,376)
5,409
456

(491)

358

–

(349,037)(27,013)(11,851)(26,852)
8,770(14,099)952(3,555)
14,507(19,072)(5,935)
1,013(3,269)9,083
42,765

SubtotalInterest received
Dividends received
Interest paid
Income taxes paid

197,474
3,933
38(5,388)(97,567)

182,182
2,365
11(4,803)(137,390)

Net cash provided by operating activities

98,49042,365

41
16

30

34

- 15 -

(Millions of yen)
Notes
Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from transfer of the Scientific
Solutions Business
Proceeds from the transfer of the collagenbusiness and dental product sales businesses
Payments for acquisition of subsidiaries
Proceeds from sale of subsidiaries
Collection of loans receivable
Payments for contingent consideration
Expenditures based on share purchase agreement
Amount recovered upon cancellation of sharepurchase agreement
Other–(46,425)

20,4601,471(23,053)(3,705)(18,199)
(28)

34

–

379,091

34

–

1,656

34,40
34
41

(3,859)
–
1,284
(606)
–

–
4,472
53,373(2,966)(43,647)–

31,110771

84(58,414)359,992

34

(67)

(3)

34
34
26

(20,914)(13,547)(17,822)(226)(50,003)(40,000)(19,518)(40,000)(20,057)(183)(180,002)(10,000)–(2,921)(599)(3,326)(143,178)(276,010)

6,042

9,074

(97,060)

135,421302,572

205,512205,512340,933

18,34

Net cash used in financing activities
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 period2024(2,136)(47,570)

Net cash provided by (used in) investing
activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings andcommercial papers
Repayments of lease liabilities
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Payments for share repurchase
Redemption of bonds
Payments for acquisition of interests in
subsidiaries from non-controlling interests
Other

2023

7

- 16 -

Notes to the Consolidated Financial Statements
Olympus Corporation and Consolidated Subsidiaries
1. 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 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 andother products. Description of each business is as described in Note “6. Business Segments.”
2. Basis of Preparation(1) Statement of the consolidated financial statements’ compliance with IFRSThe consolidated financial statements of the Olympus Group have been prepared in accordance withIFRS issued by the International Accounting Standards Board. Since the requirements for a “Specified
Company of Designated International Accounting Standards” set forth in Article 1-2 of the “Regulation
on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements” are satisfied,
Olympus Corporation adopts the provisions of Article 93 of the same Regulation.
The Japanese language consolidated financial statements for the fiscal year ended March 31, 2024 wereapproved by Stefan Kaufmann, Director, Representative Executive Officer, President and CEO, andTatsuya Izumi, Executive Officer and CFO, on June 20, 2024. These English language consolidated
financial statements were approved by Stefan Kaufmann, Director, Representative Executive Officer,
President and CEO, and Tatsuya Izumi, Executive Officer CFO subsequently on August 7, 2024.
Refer to (Share repurchase and cancellation of treasury shares, Transfer of orthopedic surgery businessand Disposal of treasury shares) of Note 43 for details of material event which occurred subsequent to thedate of the Japanese language consolidated financial statements, which required additional disclosures inthese English language consolidated financial statements.
(2) Functional currency and presentation currency
The Olympus Group’s consolidated financial statements are presented in Japanese yen, which is also
Olympus Corporation’s functional currency, and figures are rounded off to the nearest million yen.
(3) Changes in presentation methods(Consolidated Statement of Cash Flows)(Cash flows from investing activities)
In the fiscal year ended March 31, 2023, because “Collection of loans receivable” and “Payments forcontingent consideration,” which had previously been included in “Other” of “Cash flows from investing
activities,” increased in monetary importance, they have been listed independently from the fiscal year
ended March 31, 2024. Furthermore, due to the decreased monetary importance of “Proceeds from saleand redemption of investments,” which had previously been listed independently, it has been disclosed in“Other” from the fiscal year ended March 31, 2024. To reflect this change in the presentation method,
consolidated financial statements for the fiscal year ended March 31, 2023 have been reclassified.
As a result, ¥516 million which had previously been presented in “Other” of “Cash flows from investing
activities,” has been listed independently as ¥1,284 million in “Collection of loans receivable,” and ¥606
million in “Payments for contingent consideration” and ¥933 million in “Proceeds from sale andredemption of investments” has been reclassified as “Other” in the amount of ¥771 million.

- 17 -

3.

Material Accounting Policies(1) Basis of consolidation(i)

Subsidiaries
A subsidiary is an entity that is controlled by the Olympus Group. The Olympus Group considers
that it has control over an entity when it is exposed or has rights, to variable returns arising from its
involvement with the entity, while having the ability to affect those returns through the exercise of
its power over the entity. Financial statements of a subsidiary are consolidated from the date on
which the Olympus Group obtains control over such subsidiary, until the date on which the control
is lost.
All intergroup balances, transactions, unrealized profit or loss arising from intergroup transactions
are eliminated on consolidation.
Comprehensive income of the subsidiaries is attributed to the owners of parent and to the noncontrolling interests even if this results in the non-controlling interests having a deficit balance.
Changes in Olympus Corporation’s ownership interests in subsidiaries that do not result in a loss ofcontrol are accounted for as equity transactions. Any difference between the adjustment to the noncontrolling interests and the fair value of the consideration is recognized directly in equity
attributable to owners of parent.
If the Olympus Group loses control over a subsidiary, any resulting gains or losses shall berecognized in profit or loss.

(ii) Associates
An associate is an entity over which the Olympus Group has significant influence on its financial
and operating policies but does not have control or joint control. Investments in associates areaccounted for by the equity method from the date the Olympus Group gains significant influence
until the date it loses that influence.
Investments in associates include goodwill recognized on acquisition.
(2) Business combinations
Business combinations are accounted for by using the acquisition method.
If the initial accounting for a business combination is incomplete by the end of the reporting period inwhich a business combination occurs, the items for which the accounting treatment is incomplete aremeasured at provisional amounts, and adjustments to the provisional amounts are finalized during themeasurement period within one year from the acquisition date.
Consideration for an acquisition is measured at the sum of the acquisition-date fair value of the assets
transferred, liabilities assumed, and equity instruments issued by the Olympus Group in exchange for thecontrol over the acquiree. Consideration for an acquisition includes contingent consideration. If
consideration for an acquisition exceeds the fair value of identifiable assets and liabilities, such excess isrecognized as goodwill in the consolidated statement of financial position. If, conversely, theconsideration is less than the fair value, the difference shall be directly recognized in profit or loss in the
consolidated statement of profit or loss. In addition, acquisition-related costs incurred shall be recognizedin profit or loss.
(3) Foreign currency translations(i)

Foreign currency transactions
Foreign currency transactions are translated into the functional currency of each Group company
using the exchange rate at the transaction date or an exchange rate that approximates it. At the endof each reporting period, monetary assets and liabilities denominated in foreign currencies aretranslated into functional currencies using the exchange rate at the end of the reporting period.
Nonmonetary assets and liabilities denominated in foreign currencies measured at fair value are- 18 -

translated into functional currencies using the exchange rate at the date when such fair value wasmeasured. Translation differences arising from translations and settlements are recognized in profit
or loss for the period; provided, however, that translation differences arising from financial assets
measured at fair value through other comprehensive income are recognized in other comprehensive
income.
(ii) Financial statements of foreign operations
Assets and liabilities of foreign operations are translated into Japanese yen using the exchange rates
at the end of the reporting period. Income and expenses are translated into Japanese yen using the
average exchange rates for the fiscal year unless exchange rates significantly fluctuate during theperiod. Exchange differences on translation of foreign operations are recognized in othercomprehensive income. Such translation differences of foreign operations are recognized in profit orloss for the period in which the foreign operations concerned are disposed of.
(4) Financial instruments(i)Financial assets(i)

Initial recognition and measurement
The Olympus Group initially recognizes trade and other receivables on the date when they are
incurred, and other financial assets at the transaction date when the Olympus Group becomes aparty to the contract for the financial assets. At the initial recognition, financial assets aremeasured at fair value plus transaction costs, except for those measured at fair value throughprofit or loss.

(ii) Classification and subsequent measurement
The Olympus Group classifies the financial assets at initial recognition as financial assets
measured at amortized cost, financial assets measured at fair value through other comprehensive
income or financial assets measured at fair value through profit or loss.
(Financial assets measured at amortized cost)
Financial assets are classified into financial assets measured at amortized cost, on the condition
that they meet both of the following criteria:• Financial assets are held based on the business model to hold financial assets for the purposeof collecting contractual cash flows• Contractual terms associated with financial assets give rise to cash flows on specified dates,consisting only of payment of the principal and interest on the principal balance
Financial assets measured at amortized cost are measured at amortized cost using the effective
interest method subsequent to the initial recognition.
(Financial assets measured at fair value through other comprehensive income)Equity instruments such as shares held mainly for the purpose of maintaining or strengthening
business relationships with investees are designated at initial recognition as financial assets
measured at fair value through other comprehensive income.
Any change in fair value of equity financial assets measured at fair value through othercomprehensive income is recognized in other comprehensive income subsequent to the initialrecognition. If such assets are derecognized or the fair value decreases significantly, accumulated
other comprehensive income is directly transferred to retained earnings.
Dividends from such financial assets are recognized in profit or loss.
(Financial assets measured at fair value through profit or loss)
Financial assets other than above are classified as financial assets measured at fair value throughprofit or loss.
- 19 -

Changes in fair value of financial assets measured at fair value through profit or loss arerecognized in profit or loss subsequent to the initial recognition.
(iii) Impairment of financial assets
For financial assets measured at amortized cost, the Olympus Group recognizes allowance for
doubtful accounts for expected credit losses.
The Olympus Group evaluates at the end of each reporting period whether there is a significant
increase in credit risk of financial assets since initial recognition. When there is no significant
increase in the credit risk since initial recognition, the amount equal to expected credit losses for
12 months are recognized as allowance for doubtful accounts. When there is a significant
increase in credit risk since initial recognition, the amount equal to expected credit losses for theremaining life of the financial assets are recognized as allowance for doubtful accounts.
For trade receivables, contract assets and lease receivables, allowance for doubtful accounts arealways recognized at the amount equal to expected credit losses for the remaining life of theassets.
With regard to financial assets on which impairment losses were previously recognized, when theamount of impairment losses decreased due to any event that occurred after the initial recognitionof the impairment losses, the previously recognized impairment losses are reversed andrecognized in profit or loss.
(iv) Derecognition
A financial asset is derecognized when the contractual rights to the cash flows from the financial
asset expire or when the contractual rights to receive the cash flows from the financial asset areassigned and substantially all the risks and rewards of ownership are transferred.
(ii) Financial liabilities(i)

Initial recognition and measurement
The Olympus Group initially recognizes financial liabilities at the transaction date when the
Olympus Group becomes a party to the contract for the financial liabilities. All financial
liabilities are measured at fair value at initial recognition, whereas financial liabilities measured
at amortized cost are measured at the amount less directly attributable transaction costs.

(ii) Classification and subsequent measurement
Financial liabilities are classified into financial liabilities measured at fair value through profit orloss or financial liabilities measured at amortized cost at initial recognition.
Changes in fair value of financial liabilities measured at fair value through profit or loss arerecognized in profit or loss subsequent to the initial recognition.
Financial liabilities measured at amortized cost are measured at amortized cost subsequent to theinitial recognition, by using the effective interest method. Amortization by the effective interest
method, as well as gains and losses associated with derecognition shall be recognized in profit orloss.
(iii) Derecognition
The Olympus Group derecognizes a financial liability when it is extinguished, namely when the
obligation specified in the contract is discharged, cancelled or expires.
(iii) Offsetting financial instruments
Financial assets and liabilities are offset, with the net amount presented in the consolidated
statement of financial position, only if the Olympus Group holds a legal right to offset the- 20 -

recognized amounts, and there is an intention to settle on a net basis or to realize the asset and settle
the liability simultaneously.
(iv) Derivatives and hedge accounting
The Olympus Group uses derivatives such as forward exchange contracts, interest rate swaps andinterest rate currency swap contracts, as hedging instruments against foreign exchange risk andinterest rate risk. These derivatives are classified as financial assets measured at fair value throughprofit or loss and financial liabilities measured at fair value through profit or loss. Derivatives thatmeet criteria for hedge accounting are designated as hedging instruments, and hedge accounting isapplied.
For the application of hedge accounting, the Olympus Group officially makes designation andprepares documentation at the inception of the hedge, regarding the hedging relationship as well as
the risk management objectives and strategies. Such document contains hedging instruments,
hedged items, the nature of the risks to be hedged and the method for evaluating the hedging
effectiveness. The Olympus Group continually evaluates whether the hedging relationship is
effective prospectively.
The Olympus Group applies cash flow hedges to interest rate-related and interest rate currency
related derivative transactions that meet the criteria for hedge accounting.
Of changes in fair value associated with hedging instruments in cash flow hedges, the effective
portion is recognized in other comprehensive income, and recognized in other components of equity
until the hedged transaction is executed and recognized in profit or loss. The ineffective portion isrecognized in profit or loss.
The amount associated with hedging instruments recognized in other components of equity istransferred to profit or loss, at the point in time when the hedged transaction affects profit or loss. If
a hedged item results in the recognition of a non-financial asset or a non-financial liability, theassociated amount recognized in other components of equity is accounted for as adjustment to theinitial book value of the non-financial asset or the non-financial liability.
When any forecast transaction is no longer expected to occur, hedge accounting is discontinued, andany related cumulative gain or loss that has been recognized as other components of equity istransferred to profit or loss. Even if hedge accounting was discontinued, the amount that had beenrecognized as other components of equity until hedge accounting was discontinued continues to berecognized in other components of equity until future cash flows occur when these future cash flows
are expected to occur.
The Olympus Group does not use fair value hedges or net investment hedges in foreign operations.
(5) Cash and cash equivalents
Cash and cash equivalents comprise cash, readily available deposits, and short-term, highly liquid
investments having maturities of three months or less of the date of acquisition that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(6) Inventories
Inventories are measured at the lower of cost or net realizable value. The costs of inventories arecalculated principally by using the weighted average method, which include purchase cost, processing
cost, and other costs incurred in bringing inventories to their present location and condition. Net
realizable value is determined at the estimated selling price in the ordinary course of business lessestimated cost required up to the completion of the process and estimated selling expenses.
(7) Property, plant and equipment
Property, plant and equipment is measured by using the cost model and is stated at cost less accumulated
depreciation and accumulated impairment losses.
- 21 -

The costs of property, plant and equipment include any costs directly attributable to the acquisition ofassets, dismantlement, removal and restoration costs as well as borrowing costs eligible for capitalization.
Except for assets that are not depreciated such as land, each asset is depreciated over its estimated usefullife on a straight-line basis. The estimated useful lives of major asset items are as follows (excluding
right-of-use assets):•••

Buildings and structures: 2 to 50 years
Machinery and vehicles: 2 to 10 years
Tools, furniture and fixtures: 2 to 15 years

The estimated useful lives, residual values and depreciation methods are subject to review at the end ofeach reporting period, and any change is prospectively applied as a change in an accounting estimate.
(8) Goodwill
Goodwill is carried at cost less any accumulated impairment losses.
Goodwill is not amortized and is tested for impairment in each period or whenever there is an indicationof impairment. Impairment loss of goodwill is recognized in profit or loss.
Goodwill measurements at initial recognition are presented in “(2) Business combinations.”(9) Intangible assets
Intangible assets are measured by using the cost model and are carried at cost less accumulated
amortization and accumulated impairment losses.
The costs of intangible assets acquired separately include any costs directly attributable to the acquisitionof the assets. Intangible assets acquired through business combinations are measured at fair value at theacquisition date. With regard to internally generated intangible assets, of the costs incurred during thedevelopment phase, the following are eligible for capitalization and recognized as development costs,
whereas such costs that are not eligible are recognized as expenses when incurred.
•
•
•
•
•

The technical feasibility of completing the intangible asset so that it will be available for use or sale.
Olympus Corporation’s intention to complete the intangible asset and use or sell it.
Olympus Corporation’s ability to use or sell the intangible asset.
The intangible asset is likely to create future economic benefits.
The availability of adequate technical, financial and other resources to complete the development andto use or sell the intangible asset.
• Olympus Corporation’s ability to measure reliably the expenditure attributable to the intangible asset
during its development.
Except for intangible assets with indefinite useful lives, each asset is amortized over the estimated usefullife on a straight-line basis. The estimated useful lives of major asset items are as follows:• Capitalized development costs: 4 to 8 years• Software: 3 to 5 years• Other: 3 to 15 years
The estimated useful lives and amortization methods are reviewed at the end of each reporting period, andany change is prospectively applied as a change in an accounting estimate.
Intangible assets with indefinite useful lives and those yet to be usable are not amortized and are tested
for impairment in each period or whenever there is an indication of impairment.
(10) Leases(i)

Leases as lessee
Olympus Corporation introduces a single lessee accounting model, instead of classifying leases into
operating leases and finance leases, and recognizes right-of-use assets representing its rights to use
the underlying leased assets and lease liabilities representing its obligations to make lease payments
for all leases, in principle.
- 22 -

Lease liabilities are measured at the present value of the total lease payments that are not paid at thecommencement date. Right-of-use assets are initially measured at the initial measurement amount oflease liabilities adjusted for any initial direct costs, prepaid lease payments, restoration costs, etc.
Right-of-use assets are depreciated on a straight-line method over the shorter of their estimateduseful lives and lease terms.
The lease term is estimated based on the non-cancellable period and adjusted for optional periods forwhich the Olympus Group is reasonably certain to exercise an option to extend or terminate thelease.
Furthermore, lease payments are categorized into amounts equivalent to the principal and interest oflease liabilities, and the amount equivalent to the interest apportioned to each fiscal period is
calculated so as to achieve a constant rate of interest on the lease liabilities balance at each periodend, and recognized in profit or loss.
If the contract transfers the right to control the use of an identified asset for a period of time inexchange for a consideration, at the start of the contract, the contract is deemed to be a lease or tocontain a lease.
For short-term leases and leases for which the underlying asset is of low value, the Olympus Group
does not recognize the right-of-use assets and lease liabilities but recognizes lease payments as
expenses.
Right-of-use assets and lease liabilities are included in and presented as “Property, plant andequipment” and “Other financial liabilities” respectively on the consolidated statement of financial
position.
(ii) Leases as lessor
Lease transactions involving the transfer of substantially all the risks and rewards associated withthe ownership of the leased assets are classified as finance leases, while other types of leasetransactions are classified as operating leases.
In finance lease transactions, the present value of gross investments in the lease is recognized asrevenue at the commencement of the lease term, and the corresponding amount is recognized aslease receivables. Unearned finance income is apportioned at a constant rate on the net investment
over the lease term and recognized as revenue in the period to which it is attributable.
In operating lease transactions, the relevant leased properties are recognized in the consolidated
statement of financial position, and lease payments receivable are recognized as revenue over thelease terms on a straight-line method.
(11) Impairment of non-financial assets
For the carrying amount of non-financial assets (excluding inventories, deferred tax assets, retirement
benefit assets and non-current assets held for sale), the Olympus Group assesses at the end of eachreporting period whether there is an indication of impairment. If any such indication exists, an impairment
test is performed. However, goodwill, intangible assets with indefinite useful lives and those yet to beusable are tested for impairment in each period or whenever there is an indication of impairment.
Assets that are not individually tested in impairment testing are integrated into the smallest cashgenerating unit that generates cash inflows largely independent of cash inflows from other assets or asset
groups. Corporate assets do not generate independent cash inflows. Therefore, if there is an indicationthat corporate assets may be impaired, the impairment test is performed based on the recoverable amountof the cash-generating unit to which the corporate assets belong.
The recoverable amount of an asset or cash-generating unit is the higher of its value in use and fair valueless cost of disposal. In calculating value in use, estimated future cash flows are discounted to the present
value using the pretax discount rate reflecting the time value of money and risks specific to the asset.
Impairment losses are recognized when the carrying amount of an asset or cash-generating unit exceeds
its recoverable amount. Impairment losses recognized in association with a cash-generating unit arerecognized by first reducing the carrying amount of any allocated goodwill and then are allocated to otherassets of the cash-generating unit on a pro-rata basis based on the carrying amount of each asset.
When there is an indication of reversal in respect of impairment losses recognized in prior periods and therecoverable amount of the asset or cash-generating unit exceeds its carrying amount, impairment losses- 23 -

are reversed. The carrying amount after reversal of impairment losses does not exceed the carrying
amount that would have been determined when depreciation or amortization had been continued until thereversal occurred if any impairment loss had never been recognized for the asset. Impairment losses
associated with goodwill are not reversed.
(12) Non-current assets and discontinued operations held for saleNon-current assets or disposal groups that will be recovered principally through a sale transaction rather
than through continuous use are classified as non-current assets or disposal groups held for sale if it ishighly probable that they will be sold within one year, they are immediately available for sale in theircurrent state, and the Olympus Group’s management is committed to implementing a plan for their sale.
The Olympus Group shall not depreciate or amortize a non-current asset while it is classified as held forsale or while it is part of a disposal group classified as held for sale, and shall measure a non-current asset
or disposal group classified as held for sale at the lower of its carrying amount and fair value less costs tosell.
When businesses that are considered as units on which management decision is made have already beensold or fulfill the requirements to be classified as being held for sale, the Olympus Group classifies thosebusinesses as discontinued operations.
(13) Provisions
Provisions are recognized when the Olympus Group has present obligations as a result of past events, it ishighly probable that outflows of economic resources will be occurred to settle the obligations, andreliable estimates of the obligations can be made.
Where time value of money is material, provisions are measured by discounting estimated future cash
flows into present value by using the interest rate reflecting the time value of money as well as the risks
inherent to the associated liabilities.
(14) Contingent liabilities
With regard to liabilities held by the Olympus Group as of the end of the reporting period that may be
incurred, when it cannot be confirmed whether or not those are liabilities as of the end of the reporting
period, or when the liabilities do not meet criteria for recognition of provisions, information on suchliabilities is provided in the corresponding note on contingent liabilities, unless it is believed that thepossibility of an outflow of economic resources by performance of the liabilities is remote at the end of
the reporting period.
(15) Government grants
Government grants are recognized at fair value, if there is reasonable assurance that the Olympus Groupwill comply with the conditions attached to them and that will receive the grants. Government grants
associated with expenses are recognized in revenue over the period when the expenses, which the grant isintended to compensate, are incurred. Government grants related to the acquisition of assets arerecognized as deferred income and then recognized in profit or loss over the expected useful life of therelevant asset on a systematic basis.
(16) Employee benefits(i)Post-employment benefits
The Olympus Group adopts defined benefit pension plans and defined contribution pension plans.
The Olympus Group calculates the present value of defined benefit obligations and associatedcurrent service cost as well as past service cost by using the projected unit credit method.
The discount rate used for discounting to the present value of defined benefit obligations isdetermined by reference to market yields on high quality corporate bonds of which currency and due
date are consistent with those of the post-employment benefit obligations.
- 24 -

Asset or liability associated with a defined benefit plan is calculated by subtracting the fair value ofplan assets from the present value of defined benefit obligations of each plan.
Any difference due to remeasurement arising from defined benefit pension plans is recognized asother comprehensive income in the period when the difference arose, and immediately transferred toretained earnings. Past service costs are expensed as incurred.
Contributions to defined contribution pension plans are recognized as expenses according to theperiod during which employees rendered the relevant services.
(ii) Short-term employee benefits
Short-term employee benefits are recognized as expenses in the period in which the employee
renders the related service without discounting. When the Olympus Group has present legal orconstructive obligations to make payments resulting from past services rendered by the employees
and the amount can be estimated reliably, the amount estimated to be paid is recognized as aliability.
(iii) Other long-term employee benefits
The Olympus Group has a special leave system and incentive payment plans according to a specificnumber of service years as long-term employee benefits other than pension plans. The amount of
obligations to other long-term employee benefits is recognized as a liability at the amount calculatedby discounting the estimated amount of future benefits earned in exchange for service that
employees provided in prior fiscal years and the current fiscal year to the present value.
(17) Equity
Common shares are recognized in share capital at their issue price. Expenses incidental to issuance ofcommon shares are deducted at the amount net of tax effect from equity.
Treasury shares are recognized at cost and deducted from equity. No gain or loss is recognized associatedwith the purchase, sale or retirement of treasury shares of Olympus Corporation. Any difference between
the book value and the consideration received from the sale is recognized in equity.
(18) Stock-based compensation
The Olympus Group has adopted equity-settled stock option plans for directors, executive officers,
corporate officers, and senior management of Olympus Corporation and its subsidiaries with the aim ofenhancing awareness toward contributing to sustainable improvement of corporate value as well as
further enhancing value sharing with shareholders of Olympus Corporation.
Stock option plans
Stock options are measured at fair value at the grant date and recognized as expenses over the vesting
periods with corresponding increases to equity and taking into account the estimated number of
options to be vested. The fair value of stock options is calculated using the Black-Scholes model.
Stock compensation system
Olympus Corporation has introduced a subsequent grant-type restricted stock compensation (RSU:
Restricted Stock Unit) system and performance-based stock compensation (PSU: Performance Share
Unit) system as a stock compensation system. The compensation calculated by the reference the fairvalue of shares of Olympus Corporation is recognized in profit or loss as an expense and thecorresponding amount is recognized as an increase in equity.

- 25 -

(19) Revenue
With regard to contracts with customers, the Olympus Group recognizes revenue by applying thefollowing steps (except for interest and dividend income, etc., under IFRS 9 “Financial Instruments” andlease payments receivable under IFRS 16 “Leases”).
Step 1: Identify the contract with the customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Olympus Group is principally engaged in the manufacturing and sales of endoscopic, therapeutic andother products. With regard to the sales of these products, the Olympus Group mainly recognizes revenue
at the time of delivery of a product since in many cases it considers that the customer obtains control overthe product and performance obligations are satisfied at the time of delivery of the product.
Revenue is measured at the amount of promised consideration in contracts with customers less discounts
and rebates, and reduced by the amount of sales returns.
(20) Finance income and finance costs
Finance income mainly comprises interest income, dividend income, exchange gains and changes in fairvalue of financial assets and liabilities measured at fair value through profit or loss. Interest income isrecognized as incurred using the effective interest method. Dividend income is recognized when the rightto receive payment is established.
Finance costs mainly comprise interest expenses, interest on bonds, exchange losses and changes in fairvalue of financial assets and liabilities measured at fair value through profit or loss. Interest expenses andinterest on bonds are recognized as incurred using the effective interest method.
(21) Income taxes
Income taxes comprise current taxes and deferred taxes. These taxes are recognized in profit or loss,
except in cases where they arise from items that are recognized directly in other comprehensive income orequity, and where they arise from business combinations.
(i)Current taxes
Current taxes are measured at an expected amount of taxes to be paid to or refunded from the tax
authorities. The tax rates and tax laws used to determine the amount of taxes are tax rates and tax
laws that have been enacted, or substantially enacted by the end of the reporting period.
With regard to uncertain tax positions of income taxes, the Olympus Group recognizes thereasonably estimated amount as assets or liabilities, when it is more likely than not, based oninterpretations for the purpose of tax laws, that the tax positions will be sustained.

(ii) Deferred taxes
Deferred taxes are recognized for temporary differences, which are differences between the tax
bases of assets and liabilities and their carrying amounts for accounting purposes at the end of thereporting period, tax losses carried forward and tax credits carried forward.
Deferred tax assets or liabilities are not recognized for the following cases:• Taxable temporary differences arising from the initial recognition of goodwill• Temporary differences on the initial recognition of assets or liabilities arising from a transaction,
except a business combination that affects neither accounting profit nor taxable profit and thatarises neither equivalent amount of taxable temporary differences nor deductible temporary
differences.
- 26 -

• Taxable temporary differences associated with investments in subsidiaries and associates when
the Olympus Group is able to control the timing of the reversal of the temporary difference and it
is probable that the temporary difference will not reverse in the foreseeable future.
• Deductible temporary differences associated with investments in subsidiaries and associates when
it is probable that the temporary difference will not reverse in the foreseeable future, or when it is
not probable that there will be sufficient taxable profits against which the deductible temporary
differences can be utilized.
Deferred tax assets are recognized to the extent that it is probable that taxable profits will beavailable against which deductible temporary differences, unused tax credits carried forward and tax
losses carried forward can be utilized. In principle, deferred tax liabilities are recognized for all
taxable temporary differences.
In recognizing deferred tax assets, the Olympus Group assesses the probability that deductible
temporary differences or tax losses carried forward can be utilized against future taxable profits. In
assessing the recoverability of deferred tax assets, the scheduled reversal of deferred tax liabilities,
projected taxable profits and tax planning are taken into account.
Deferred tax assets and liabilities are measured based on tax rates and tax laws that have beenenacted, or substantially enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset if the Olympus Group has a legally enforceable right tooffset current tax assets against current tax liabilities, and they are related to income taxes levied by
the same taxation authority on the same taxable entity, or different taxable entities that intend either
to settle on a net basis or to realize the tax asset or settle the liability simultaneously.
Olympus Corporation and some of its domestic subsidiaries have adopted the Group Tax Sharing
System.
(22) Earnings per share
Basic earnings per share are calculated by dividing profit attributable to owners of parent by theweighted-average number of common shares outstanding, subject to the adjustment to the number oftreasury shares for the corresponding period.
Diluted earnings per share are calculated reflecting adjustments for the effect of all potential dilutive
common shares.
4. 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.
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.
Information regarding the judgments made by the Olympus Group that may have material impacts on the
consolidated financial statements is as follows:• Scope of subsidiaries and associates (Note “3. Material Accounting Policies, (1) Basis of consolidation”)• Accounting for arrangements containing leases (Notes “3. Material Accounting Policies, (10) Leases,” and“36. Leases”)• Revenue (Notes “3. Material Accounting Policies, (19) Revenue,” and “28. Revenue”)
Information regarding accounting estimates and assumptions that may have material impacts on the
consolidated financial statements is as follows.
• Valuation of inventories (Notes “3. Material Accounting Policies, (6) Inventories,” and “9. Inventories”)- 27 -

Inventories are measured at cost. However, if net realizable value falls below the cost as of the end of thereporting period, inventories are measured at the net realizable value and any difference is recognized incost of sales in principle. For unsold inventories that remain outside the operating cycle, the net realizablevalue, etc. is calculated by reflecting future demand and market trends. If the net realizable value
decreased significantly due to a worse market environment than expected, losses may be incurred.
• Impairment of non-financial assets (Notes “3. Material Accounting Policies, (11) Impairment of nonfinancial assets,” and “16. Impairment of non-financial assets”)
The Olympus Group tests for impairment of property, plant and equipment, goodwill, and intangible
assets in accordance with Note “3. Material Accounting Policies.” In the calculation of the recoverable
amount in the impairment test, assumptions are made regarding future cash flows, discount rates, etc.
These assumptions are determined based on management’s best estimates and judgment. However, they
may be affected by the results of changes in uncertain future economic conditions, and if they require
revision, they may have a significant impact on the consolidated financial statements.
• Measurement of provisions (Notes “3. Material Accounting Policies, (13) Provisions,” and “20.
Provisions”)
Provisions are measured based on the best estimates for expenditures as of the fiscal year closing dateexpected to be required to settle future obligations. Estimates of expenditures expected to be required tosettle future obligations are calculated based on a comprehensive consideration of possible future
outcomes. Changes in uncertain future economic conditions may affect assumptions used to calculate theprovisions. Accordingly, there are risks that such changes could result in significant adjustments tomeasurements of provisions in the future accounting periods.
• Contingent liabilities (Notes “3. Material Accounting Policies, (14) Contingent liabilities,” and “42.
Contingent liabilities”)
Contingencies are disclosed when an item could have a significant impact on future operations, taking into
account all available evidence at the reporting date and considering the likelihood and monetary impact of
the event.
• Measurement of defined benefit obligation (Notes “3. Material Accounting Policies, (16) Employee
benefits,” and “23. Employee benefits”)
For defined benefit pension plans, the net value of the defined benefit obligations and the fair value ofplan assets is recognized as either liabilities or assets. Defined benefit obligations are calculated based on
the same types of assumptions used in the actuarial calculation, which include estimates of the discountrate, the retirement rate, the mortality rate, and the rate of compensation increase. These assumptions are
established by comprehensively judging a variety of available information, including market trends, suchas interest rate changes. Uncertain future economic conditions or changes in social conditions may affectthe assumptions used in the actuarial calculation. Accordingly, there are risks that such changes could
result in significant adjustments to the measurements of defined benefit obligations in future accounting
periods.
• Recoverability of deferred tax assets (Notes “3. Material Accounting Policies, (21) Income taxes,” and “37.
Income taxes”)
Deferred tax assets are recognized to the extent that it is probable that taxable income will be available
against which deductible temporary differences, etc. can be utilized. Judgements on the likelihood thattaxable income will be available are made based on the timing and amount of taxable income estimatedbased on the business plans including assumptions of the growth rate and operating profit ratio. Theseestimates are determined based on management’s best estimates. However, they may be affected by the
results of changes in uncertain future economic conditions and the actual results may differ from these
forecasts.
- 28 -

5. New or Amended Standards or Interpretations Not Yet Adopted
The new or amended standards and interpretations that were issued by the date of approval of the consolidated
financial statements and that have not been early adopted by the Olympus Group are primarily as follows. The
timing of adopting the new IFRS standards by the Olympus Group and the impact of adoption on the
Olympus Group’s consolidated financial statements is under evaluation.
IFRS Standards

IFRS 18

Presentation andDisclosure in
Financial Statements

Mandatory
adoption (from thefiscal year
beginning)
January 1, 2027

Timing ofadoption by the
Olympus GroupNot determined- 29 -

Description of new standards andamendments
Introduces new requirements to improvecompanies’ reporting of financial performanceand provide investors with a better basis foranalyzing and comparing companies

6. Business Segments(1) Overview of reportable segments
The reportable segments of the Olympus Group are the units for which separate financial information isavailable and according to which reporting is periodically conducted to decide how to allocate
management resources and assess business performance.
In the past, the Olympus Group had four reportable segments: “Endoscopic Solutions,” “Therapeutic
Solutions,” “Scientific Solutions,” and “Others.” However, from the second quarter ended September 30,
2022, we have changed to three reportable segments: “Endoscopic Solutions,” “Therapeutic Solutions,”
and “Others.” The change is due to Olympus Corporation classifying the Scientific Solutions Business as
a discontinued operation with the conclusion of a share transfer agreement related to the transfer of
Scientific Solutions Business of the Olympus Group with K.K. BCJ-66, a special purpose company
indirectly owned by funds advised by Bain Capital.
An outline of discontinued operations is described in Note “41. Discontinued Operation.” The transfer ofthe shares of Evident Corporation, which operates the Scientific Solutions Business, was completed on
April 3, 2023.
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

OthersBiomedical materials, orthopedic equipment(2) Revenue, business results and other items for reportable segments
Revenue, business results and other items for reportable segments are as follows. The accounting
treatment used for reportable segments is the same as described in Note “3. Material Accounting
Policies.”- 30 -

Fiscal year ended March 31, 2023
Reportable Segment

Revenue
Revenue from outside customers
Intersegment revenue (Note 1)
Total
Operating profit (loss)(Millions of yen)
AdjustAmount on
ment
consolidated(Note 2, 3,
financial
4, 5, 6)statements

Endoscopic
Solutions

Therapeutic
Solutions551,823

318,207

11,893881,923–881,923

–

–

252

252

(252)

–

551,823

318,207

12,145882,175(252)

881,923

152,769

63,692(914)

215,547(28,938)

186,609

Others

Total

Finance income
Finance costs

3,860
8,175

Profit before tax

182,294

Other items
Share of profit (loss) ofinvestments accounted for using
equity method
Depreciation and amortization
Impairment losses
Segment assets (Note 7)
Investments accounted for using
equity method
Capital expenditures

505

(14)

–

491

–

491

37,495

19,1591,059

57,713

5,879

63,592

1,342

883

3

2,228

265

2,493

555,939452,969

20,6381,029,546

479,155

1,508,701

664

346

–

1,010

–

1,010

43,001

15,854

1,428

60,283

11,74072,023

Notes: 1. Intersegment revenue 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.
4. Adjustment for segment assets is the amount related to corporate assets that are not attributable to reportablesegments and assets of discontinued operations.
5. Adjustment for depreciation and amortization is the amount of depreciation and amortization related to corporate
assets that are not attributable to reportable segments.
6. Adjustment for capital expenditures is the amount of increase in fixed assets related to corporate assets that are not
attributable to reportable segments.
7. Provisional amounts for segment assets have been revised in the fiscal year ended March 31, 2024 with respect tothe acquisition of Odin Medical Ltd. in the fiscal year ended March 31, 2023 and figures at the end of the fiscal year
ended March 31, 2023 have been retrospectively revised. For details, please see Note “40. Business Combinations.”- 31 -

Fiscal year ended March 31, 2024
Reportable Segment

Revenue
Revenue from outside customers
Intersegment revenue (Note 1)
Total
Operating profit (loss)(Millions of yen)
AdjustAmount on
ment
consolidated(Note 2,
financial
4, 5, 6)statements

Endoscopic
Solutions

Therapeutic
Solutions

586,617337,331

12,262936,210–936,210

–

–

121

121

(121)

–

586,617337,331

12,383936,331(121)

936,210

104,684(8,466)(7,809)88,409(44,811)

43,598Others

Total

Finance income
Finance costs

2,562
10,306

Profit before tax

35,854

Other items
Share of profit (loss) ofinvestments accounted for using
equity method
Depreciation and amortization

(332)

(26)

–

(358)

–

(358)

41,501

18,184961

60,646

5,294

65,940

Impairment losses (Note 3)

10,89044,315

8,588

63,793775

64,568Segment assets

637,036

469,186

12,6601,118,882

415,334

1,534,216

–

479

–

479

–

479

50,674

19,295

1,452

71,421

9,306

80,727

Investments accounted for using
equity method
Capital expenditures

Notes: 1. Intersegment revenue 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. The operating loss of the Therapeutic solutions segment includes a loss of ¥51,886 million incurred from thediscontinuation of manufacturing and sales of Veran Medical Technologies, Inc. products. Details are as describedin Note “30. Other Income and Other Expenses.” Such losses include impairment losses of ¥41,704 million. Details
are as described in Note “16. Impairment of non-financial assets.”
4. Adjustment for segment assets is the amount related to corporate assets that are not attributable to reportablesegments.
5. Adjustment for depreciation and amortization is the amount of depreciation and amortization related to corporate
assets that are not attributable to reportable segments.
6. Adjustment for capital expenditures is the amount of increase in fixed assets related to corporate assets that are not
attributable to reportable segments.

(3) Information about products and services
This information is omitted as similar information has been disclosed in the above tables.
(4) Geographical information
Revenue and non-current assets of the Olympus Group by country or region were as follows.
Revenue- 32 -

(Millions of yen)
2023
Japan
North America
EuropeChina
Asia and Oceania
OthersTotal

2024
122,516
322,167
222,164
117,094
77,807
20,175

121,515
351,337
242,825
106,341
88,081
26,111

881,923

936,210Notes: 1. Revenue is based on the location of customers, classified by country or region.
2. Major countries or regions other than Japan were as follows:(1) North America
United States, Canada(2) Europe
Germany, United Kingdom, France, etc.
(3) Asia and Oceania
Singapore, South Korea, Australia, etc.
(4) Other
Central and South America, Africa, etc.
For the fiscal years ended March 31, 2023 and 2024, revenue from external customers in the United States was ¥300,080
million and ¥326,299 million, respectively. In no single country or region other than Japan, the United States and China
was revenue from external customers significant in the fiscal years ended March 31, 2023 and 2024.

Non-current assets (excluding financial instruments, deferred tax assets, and retirement benefit assets)(Millions of yen)
2023
Japan
Americas
Europe and Middle East
Asia and Oceania
Total

2024
138,682
220,391
153,760
26,474

138,637
202,587
163,00230,122539,307534,348

Notes: 1. Each geographic location is determined on the basis of geographic proximity.
2. Major countries and regions other than Japan were as follows:(1) Americas
United States, Canada, Mexico, and Brazil(2) Europe and Middle East Germany, United Kingdom, France, etc.
(3) Asia and Oceania
Singapore, China, South Korea, Australia, etc.
Within Americas, the balances of non-current assets (except financial instruments, deferred tax assets, and retirement
benefit assets) in the United States were ¥217,723 million and ¥199,220 million as of March 31, 2023 and 2024,
respectively. Within Europe and Middle East, the balances of non-current assets (except financial instruments, deferred
tax assets, and retirement benefit assets) in Germany were ¥58,358 million and ¥62,533 million as of March 31, 2023 and2024, respectively. The balances of non-current assets (except financial instruments, deferred tax assets, and retirement
benefit assets) in any individual country and region other than Japan, the United States, and Germany were not material
as of March 31, 2023 and 2024.
3. Provisional amounts for non-current assets have been revised in the fiscal year ended March 31, 2024 with respect
to the acquisition of Odin Medical Ltd. in the fiscal year ended March 31, 2023 and figures at the end of the fiscal
year ended March 31, 2023 have been retrospectively revised. For details, please see Note “40. Business
Combinations.”(5) Major customers
Information on revenue attributable to major customers for the fiscal years ended March 31, 2023 and2024 was omitted because revenue attributable to each customer accounted for less than 10% ofconsolidated revenue.

- 33 -

7. Cash and Cash Equivalents
The breakdown of cash and cash equivalents in the Consolidated Statement of Financial Position is as follows.
Cash and cash equivalents in the Consolidated Statement of Cash Flows are as follows:(Millions of yen)
2023
Cash and deposits

2024
164,551

148,251

4,778

192,682

Cash and cash equivalents in the consolidated statement of financial
position

169,329

340,933

Cash and cash equivalents included in assets held for sale

36,183–

Cash and cash equivalents in the consolidated statement of cash flows

205,512340,933

Short-term investments

8. Trade and Other Receivables
The breakdown of trade and other receivables as of March 31, 2023 and 2024 was as follows:(Millions of yen)
2023

2024

Trade notes receivable and trade accounts
receivable

141,877

152,042

Other receivables

14,07424,005Contract assets
Lease receivables
Allowance for doubtful accounts

1,239
65,003(10,541)

220
86,238(9,142)

211,652

253,363

Current

174,672

197,599

Non-current

36,98055,764

211,652

253,363

Total

Total

Note: Trade and other receivables are presented net of allowance for doubtful accounts in the consolidated statement of financial
position. Current assets of ¥6,056 million and non-current assets of ¥6,697 million are included in “Other receivables” in thefiscal year ended March 31, 2024 as other receivables arising from the termination of the stock acquisition agreement with
Taewoong Medical Co., Ltd.

9. Inventories
The breakdown of inventories as of March 31, 2023 and 2024 was as follows:(Millions of yen)
2023
Merchandise and finished goods
Work in progress
Raw materials and supplies
Total

2024
66,57833,52862,88867,29347,76474,973

162,994

190,030

The amounts of inventories recorded as cost of sales for the fiscal years ended March 31, 2023 and 2024 were¥224,363 million and ¥229,786 million, respectively.
- 34 -

Write-downs of inventories recognized as expenses for the fiscal years ended March 31, 2023 and 2024 were¥19,741 million and ¥23,301 million, respectively.
Inventories include materials not expected to be used for manufacturing within 12 months from the end ofeach fiscal year, but all of them are held within the Olympus Group’s normal operating cycle. The
corresponding carrying amounts at March 31, 2023 and 2024 were ¥3,842 million and ¥3,471 million,
respectively.

10. Other Financial Assets
The breakdown of other financial assets as of March 31, 2023 and 2024 was as follows:(Millions of yen)
2023

2024

Financial assets measured at fair value throughprofit or loss
Derivative assets

6,860

14,358937

704

Deposits with withdrawal restrictions

6,128

6,677

Lease and guarantee deposits

3,614

4,457

Other

8,396

10,260Equity securities and others
Financial assets measured at amortized cost

Financial assets measured at fair value throughother comprehensive income
Equity securities and others
Total
Current
Non-current
Total

6,901

7,552

32,83644,00811,3609,862

21,47634,146

32,83644,008

11. Other Current Assets and Other Non-current Assets
The breakdown of other current assets and other non-current assets as of March 31, 2023 and 2024 was asfollows:(Millions of yen)
2023

2024

Prepaid expenses

10,643

12,040Consumption tax receivables
Other

6,462
7,811

7,892
7,331

24,91627,26322,421
2,495

25,175
2,088

24,91627,263

Total
Current
Non-current
Total- 35 -

12. Assets Held for Sale
The breakdown of assets held for sale and liabilities directly associated with assets held for sale is as follows:(Millions of yen)
2023

2024

AssetsCash and cash equivalents

36,183–

Trade and other receivables

34,712–Inventories

35,931

–

Land

1,371

41

Buildings and structures

5,798

14

Machinery and vehicles

2,577

–

Tools, furniture and fixtures

3,246

–

220

–

Right-of-use assets

8,168

–

Other property, plant and equipment

4,910

–

Intangible assets

15,808–Goodwill

2,790–

Deferred tax assets

1,872

–

Other financial assets

3,792

–

Other current assets

9,804

–

Other non-current assets

2,439

–

Total

169,62155

Trade and other payables

9,109

–

Accrued expenses

10,685–

627–

Deferred tax liabilities

4,225

–

Other financial liabilities

9,187

–

Other current liabilities

7,309

–

Other non-current liabilities

2,111

–

43,253–

Construction in progress

Liabilities

Provisions

Total

The fiscal year ended March 31, 2024 saw the completion of procedures for the sale of assets and liabilities
related to the Scientific Solutions Business and of assets and liabilities related to the collagen business anddental product sales businesses, which had been classified as held for sale in the previous fiscal year.
(Transfer of Scientific Solutions Business)
The transfer of all shares of Evident Corporation, which had been a consolidated subsidiary of Olympus
Corporation, was conducted on April 3, 2023. In conjunction with this transfer, the transfer of the assets andliabilities of the Scientific Solutions Business, which were classified as held for sale in the previous fiscal
year, was completed on the same date. Details are described in Note “34. Cash Flow Information.”- 36 -

(Transfer of collagen business and dental product sales businesses)
The transfer of assets and liabilities related to the collagen business and dental product sales businesses,
which were classified as assets held for sale in the previous fiscal year, was completed on July 3, 2023.
Details are described in Note “34. Cash Flow Information.”
Assets categorized as assets held for sale in the fiscal year under review are assets, belonging to the
Endoscopic Solutions Business segment and Therapeutic Solutions Business segment, that are to be sold fromthe standpoint of management resource optimization and are scheduled for sale within a year from the fiscal
year closing date.

13. Property, Plant and Equipment(1) Changes in property, plant and equipment
The changes in carrying amount, acquisition cost, and accumulated depreciation and accumulated
impairment losses of property, plant and equipment were as follows:
Carrying amount(Millions of yen)
Buildings
andstructures

Tools,
Machineryfurniture andand vehicles
fixtures

Constructionin progress

Land

Total

Balance at April 1, 2022

121,761

23,45370,902

18,527

12,469247,112Additions
Additions through business combinations
Depreciation

13,009–(15,738)

5,289–(7,216)24,453
3(25,492)

1,056
–
(328)

15,078––58,885
3(48,774)

Impairment losses

(297)

(85)

–

–

–

(382)

Sales and disposals(4,150)(820)(4,301)(149)–(9,420)Transfer to assets held for sale

(11,651)(2,720)(6,159)(1,382)(183)(22,096)

9,358

2,036

3,877

10

(14,298)

983

5,865

889

4,344

422

755

12,275

Reclassification
Exchange differences on translation offoreign operations
Other

132

21

(10)

1

(0)

145

Balance at March 31, 2023

118,289

20,847

67,617

18,157

13,821

238,731

Additions11,8086,122

29,395170

15,03362,528Depreciation(16,342)(7,352)(26,781)(188)–(50,663)

Impairment losses(1,082)(370)(1,585)

(887)

(189)

(4,113)

Sales and disposals(3,746)(358)(4,906)(15)–(9,025)

(14)

–

–

(41)

–

(55)

17,004

1,156

5,232

(40)

(22,182)

1,170

10,668

1,364

8,034

473

657

21,196

77

19

(26)

–

129

199

136,662

21,42876,98017,6297,269

259,968

Transfer to assets held for sale
Reclassification
Exchange differences on translation offoreign operations
Other
Balance at March 31, 2024

Notes: 1. No borrowing costs were capitalized for the fiscal years ended March 31, 2023 and 2024.
2. Depreciation of property, plant and equipment is included in “Cost of sales,” “Selling, general and administrative
expenses” and “Profit from discontinued operation” on the consolidated statement of profit or loss.
3. Changes of carrying amount ¥2,706 million and ¥2,300 million by company housing Olympus Corporation
contracted and loaned to employees is recorded “Additions” and “Sales and disposals” of “Buildings and structures”
for the fiscal years ended March 31, 2023 and 2024, respectively. And that has no impact on balance.

- 37 -

Acquisition cost
(Millions of yen)
Buildings
andstructures

Tools,
Machineryfurniture andand vehicles
fixtures

Constructionin progress

Land

Total

Balance at April 1, 2022
Balance at March 31, 2023

257,067
252,867

70,03063,132305,888
293,700

19,622
19,444

12,46913,821

665,076
642,964

Balance at March 31, 2024

287,726

61,943

325,562

19,364

7,329

701,924

Accumulated depreciation and accumulated impairment losses(Millions of yen)
Buildings
andstructures

Tools,
Machineryfurniture andand vehicles
fixtures

Constructionin progress

Land

Balance at April 1, 2022

135,306

46,577

234,986

1,095

Balance at March 31, 2023

134,578

42,285226,083

Balance at March 31, 2024

151,064

40,515248,582

Total–

417,964

1,287–

404,233

1,735

60

441,956(2) Right-of-use assets
The carrying amount of right-of-use assets included in property, plant and equipment by underlying asset
type was as follows:(Millions of yen)
Buildings andstructures

Machinery andvehiclesTools, furnitureand fixtures

50,341

5,112

1,881

260

57,59443,930

4,325

1,747

160

50,162

46,384

4,660

2,210

132

53,385

Balance at April 1, 2022
Balance at March 31,
2023
Balance at March 31,
2024

Land

Total

Note: Right-of-use assets increased during the fiscal years ended March 31, 2023 and 2024 by ¥15,109 million and ¥14,838
million, respectively.

14. Goodwill and Intangible Assets(1) Changes in goodwill and intangible assets
The changes in carrying amount, acquisition cost, and accumulated amortization and accumulated
impairment losses of goodwill and intangible assets were as follows:- 38 -

Carrying amount(Millions of yen)
Intangible assets
Goodwill

Balance at April 1, 2022

Capitalized
development
costs

Software

Other

Total

164,498

61,96011,34147,060120,361

Additions

–

–

5,584

541

6,125

Additions through internal development–

13,984––

13,984

Additions through business combinations(Note 2, 3)

5,159

3,212

–

801

4,013

Amortization–(9,484)(3,432)(5,051)(17,967)

Impairment losses
Sales and disposals––(1,255)
(7)

(477)
(28)

(379)
(445)

(2,111)(480)(3,011)(11,595)(1,040)(334)(12,969)–(1,174)

179

1,278

283

14,678

1,183

214

3,980

5,377

Transfer to assets held for sale
Reclassification
Exchange differences on translation offoreign operations
Other

–

(4)

14

131

141

181,324

56,82012,35547,582

116,757

Additions

–

–

2,395

231

2,626

Additions through internal development–

15,573––

15,573

Amortization–(8,332)(3,106)(3,839)(15,277)

Impairment losses(24,029)(9,266)(31)(27,129)(36,426)

Sales and disposals
Reclassification
Exchange differences on translation offoreign operations(1,749)
–

(15)
1,436

(37)
422

(463)
(1,767)(515)
91

24,785

3,424

705

4,754

8,883

–

1

(5)

253

249

180,33159,641

12,698

19,622

91,961

Balance at March 31, 2023 (Note 3)

Other
Balance at March 31, 2024

Notes: 1. Amortization of capitalized development costs is recorded as “Cost of sales” and “Profit from discontinued operation” on
the consolidated statement of profit or loss. Amortization cost excluding capitalized development costs is recorded in“Cost of sales,” “Selling, general and administrative expenses” and “Profit from discontinued operation” on the
consolidated statement of profit or loss.
2. Of additions through business combinations, major components included in “Capitalized development costs” are¥3,212 million in research and development assets held by Odin Medical Ltd. Ltd. For details on businesscombinations, please see Note “40. Business Combinations.”
3. Provisional amounts for additions through business combinations and balance at March 31, 2023 have been revisedin the fiscal year ended March 31, 2024 with respect to the acquisition of Odin Medical Ltd. in the fiscal year ended
March 31, 2023 and figures have been retrospectively revised. For details, please see Note “40. Business
Combinations.”- 39 -

Acquisition cost
(Millions of yen)
Intangible assets
Goodwill

Capitalized
development
costs

Software

Other

Total

Balance at April 1, 2022

164,498

99,28358,389172,542

330,214

Balance at March 31, 2023

181,324

91,05062,793

175,249

329,092

Balance at March 31, 2024

180,331

95,191

69,069179,357

343,617

Accumulated amortization and accumulated impairment losses(Millions of yen)
Intangible assets
Goodwill

Capitalized
development
costs

Software

Other

Total

Balance at April 1, 2022
Balance at March 31, 2023––

37,323
34,23047,04850,438125,482
127,667

209,853
212,335

Balance at March 31, 2024–

35,55056,371

159,735

251,656(2) Significant intangible assets
Significant intangible assets recognized at March 31, 2023 are technology-related assets arising from theacquisition of Veran Medical Technologies, Inc. by the Olympus Group on December 29, 2020 andtechnology-related assets arising from the acquisition of Medi-Tate Ltd. by the Olympus Group on May
27, 2021. The carrying amounts were ¥15,345 million and ¥9,321 million, respectively, and the remaining
amortization period was 13 years each, as of March 31, 2023.
Significant intangible assets recognized at March 31, 2024 are technology-related assets arising from theacquisition of Medi-Tate Ltd. by the Olympus Group on May 27, 2021. The carrying amount was ¥9,663
million, and the remaining amortization period was 12 years, as of March 31, 2024.
(3) Research and development expenditures recognized as expenses
Research expenses and development costs that do not meet asset recognition criteria are recognized as
expenses when incurred. Research and development expenditures recognized as expenses in continuing
operations, excluding discontinued operation, in the fiscal years ended March 31, 2023 and 2024 were¥64,287 million and ¥70,795 million, respectively.

15. Commitments
Commitments to acquire property, plant and equipment and intangible assets subsequent to March 31, 2023
and 2024 were as follows:(Millions of yen)
2023
Property, plant and equipment
Intangible assets
Total- 40 -

2024
10,452289

10,177
2,527

10,741

12,704

16. Impairment of Non-financial Assets(1) Impairment losses
The Olympus Group recognizes impairment losses when the recoverable amount of an asset falls below
its carrying amount. Impairment losses related to non-financial assets are recorded as “Other expenses” inthe consolidated statement of profit or loss.
Business assets are mainly grouped according to business segment, while assets scheduled for disposal
are grouped according to the assets to be disposed or sold, and idle assets are grouped individually.
The breakdown of impairment losses by asset type was as follows:(Millions of yen)
2023

2024

Property, plant and equipment
Buildings and structures

297

Machinery and vehicles

85

370

Tools, furniture and fixtures

–

1,585

Land

–

887

Construction in progress

–

189

–

24,029

1,255

9,266

Software

477

31

Other

379

27,1292,493

64,568Goodwill

1,082

Intangible assets
Capitalized development costs

Total

Major impairment losses recognized in the fiscal year ended March 31, 2023 were as follows.
The Company recognized impairment losses of ¥1,009 million on development assets in the Endoscopic
Solutions Business, which were written down to their recoverable amount since the Company no longer
expects them to generate the expected earnings at the time of acquisition due to such factors as changes in
the market environment. The recoverable amount was the fair value less costs of disposal and, as theassets are difficult to sell, this amount was zero. It was classified as level 3 in the fair value hierarchy.
The main impairment losses recognized in the fiscal year ended March 31, 2024 were as follows.
(Losses associated with the discontinuation of manufacture and sale of products from Veran Medical
Technologies, Inc.)
Following the discontinuation of the manufacture and sale of Veran Medical Technologies, Inc. (“VMT”)
electromagnetic navigation systems, related non-current assets were written down to their recoverable
amount, and an impairment loss of ¥41,704 million was recorded (¥20,227 million for goodwill; ¥16,077
million for technology-related assets; ¥250 million for trademarks; ¥3,601 million for research anddevelopment in progress; and ¥1,157 million for license usage rights). Since the completion of theacquisition, the non-current assets related to the manufacture and sale of VMT’s products included in
Therapeutic solutions segment had been tested for impairment using this business segment as the cashgenerating unit, taking into account synergies with other assets in the Therapeutic Solutions Businesssegment. However, during the fiscal year ended March 31, 2024, it was found that it was difficult toachieve the original goal of early diagnosis and minimally invasive treatment of respiratory diseases incombination with existing respiratory products, which was assumed at the time of acquisition, and it wasalso found that the products did not meet the quality standards required internally. Due to the decision toterminate the development and sale of VMT’s products, the impairment test was performed separately for- 41 -

non-current assets incurred in connection with the acquisition of VMT, rather than on a business segment
basis. The recoverable amount was the fair value less costs of disposal and, as the assets are difficult tosell, this amount was zero. It was classified as level 3 in the fair value hierarchy.
VMT was acquired by the Olympus Group in December 2020, with the objective of combining VMT’selectromagnetic navigation systems and related devices with Olympus Corporation’s bronchoscope
systems to enable early diagnosis and minimally invasive therapies for bronchial disease, and drive thegrowth of the Respiratory business. However, as a result of an independent investigation it became
apparent that VMT’s technology and products did not conform to the quality standards of the Olympus
Group, and accordingly Olympus Corporation discontinued shipments of said products in February 2023,
since which time it has been engaged in further analysis and considering how to address the situation
going forward. After putting the highest priority on the safety of patients during these deliberations, weconcluded that improving the quality for these products to meet Olympus standards would incur
enormous costs, and that a resumption of shipments would be significantly delayed at a time when theclinical needs of our customers are undergoing rapid change. Accordingly, on September 6, 2023 we took
the decision to discontinue the manufacture and sale of these products. Loss amounts associated with thediscontinuation of manufacture and sale of these products are as described in Note “30. Other Income andOther Expenses.”(Impairment losses on development assets and research and development in progress)
Olympus Corporation recognized impairment losses of ¥6,002 million and ¥4,565 million on
development assets and research and development in progress, respectively, in the Endoscopic Solutions
Business, which were written down to their recoverable amount since Olympus Corporation no longer
expects them to generate the expected earnings at the time of acquisition due to such factors as changes in
the market environment. Olympus Corporation recognized impairment losses of ¥2,346 million on
development assets in Therapeutic Solutions Business, which were written down to their recoverable
amount since Olympus Corporation no longer expects them to generate the expected earnings at the timeof acquisition due to such factors as changes in the market environment. The recoverable amount was thefair value less costs of disposal and, as the assets are difficult to sell, this amount was zero. It wasclassified as Level 3 in the fair value hierarchy.
(Loss related to the orthopedic surgery business)
Olympus Corporation recorded impairment losses of ¥8,588 million (¥3,802 million for goodwill; ¥1,407
million for patent rights; ¥918 million for research and development assets; ¥271 million for land; ¥512
million for buildings and structures; ¥1,219 million for tools, furniture and fixtures; ¥180 million formachinery and vehicles; and ¥189 million for right-of-use assets) on the assets in the orthopedic surgery
business that is part of the “Others” segment, which were written down to their recoverable amount since
Olympus Corporation no longer expects them to generate the expected earnings due to such factors aschanges in the market environment. The recoverable amount was the fair value less costs of disposal. It
was classified as level 3 in the fair value hierarchy.
(2) Impairment test for goodwill
The breakdown of the carrying amount of goodwill corresponding to cash generating units was asfollows:(Millions of yen)
2023

2024

Endoscopic solutions segment

28,511

32,421

Therapeutic solutions segment

149,458

147,910

3,355–

181,324

180,331

Other
Orthopedic surgery business
Total- 42 -

The Olympus Group tested goodwill for impairment on March 31, 2023 and 2024.
Individually significant goodwill carried on the consolidated statement of financial position is the
goodwill allocated to the Endoscopic solutions segment and Therapeutic solutions segment.
For impairment testing of goodwill, the recoverable amount is measured based on value in use.
Value in use is measured by discounting estimated future cash flows to present value. Estimated future
cash flows is primarily based on a business plan approved by the management and considering a growthrate for the period after the term of the business plan.
Business plans have a maximum term of five years as a general rule. Business plans reflect management’s
assessment of future industry trends as well as historical data, and are prepared based on external andinternal information. The estimated future cash flows are determined based on the business plans.
The growth rate for the period after the term of the business plans is determined based on market research
reports for the industry in which the cash-generating unit (CGU) operates. The growth rate of“Endoscopic Solutions Business” and “Therapeutic Solutions Business” is 1.7% - 4.1% and 1.6% - 5.2%,
respectively, as of March 31, 2023, and 1.7% - 4.7% and 1.5% - 4.8%, respectively, as of March 31,
2024.
The discount rate is based on the pre-tax weighted average cost of capital of the cash-generating unit. The
discount rates for the fiscal years ended March 31, 2023 and 2024, were 10.7% and 11.8%, respectively.
The main assumptions in estimating value in use are the growth rate and the operating profit ratio in
estimating future cash flows in the five-year business plan, the growth rate for the period after thebusiness plan and the discount rate.
Value in use measured using the above rates amply exceeds the carrying amount of the Endoscopic
solutions segment and the carrying amount of the Therapeutic solutions segment, respectively. Olympus
Corporation believes that there is a low probability of significant impairment even if the key assumptions
used in the impairment testing were to change within a range of reasonable foreseeability.

17. Trade and Other Payables
The breakdown of trade and other payables as of March 31, 2023 and 2024 was as follows:(Millions of yen)
2023

2024

Notes and account payable

45,82641,854

Other payable

17,09320,001

62,91961,855Total

18. Bonds and Borrowings
The breakdown of bonds and borrowings as of March 31, 2023 and 2024 was as follows:- 43 -

(Millions of yen)
2023
Short-term borrowings

Average interest
rate
(%)

2024

Maturity

3

–

0.00

–

Current portion of bonds payable

9,989

19,9860.20

December 2024

Current portion of long-termborrowings

39,97850,002

0.08

May 2024

Bonds (excluding current portion)

136,129

125,264

1.44

July 2025 toJuly 2030

Long-term borrowings (excluding
current portion)

153,958

104,364

0.65

April 2025 to
September 2029

340,057

299,616

49,97069,988290,087

229,628

340,057

299,616

Total
Current
Non-current
Total

Note: The average interest rate is the weighted average interest rate on the ending balance of borrowings.
Bonds and borrowings are classified as financial liabilities measured at amortized cost.

The breakdown of bonds as of March 31, 2023 and 2024 was as follows:(Millions of yen)Company

Bond name

Olympus
Corporation
Olympus
Corporation
Olympus
Corporation
Olympus
Corporation

23rd unsecured
bonds
25th unsecured
bonds
26th unsecured
bonds
27th unsecured
bonds
Dollar-denominatedunsecured bondsdue 2026

Olympus
Corporation

Issue date

2023

2024

Interest rate(%)

Maturity date

March 7, 2019

9,989

–

0.27

March 2024

December 5,
2019

19,96819,9860.20

December
2024

July 18, 2020

24,947

24,9700.25

July 2025

July 19, 2020

24,90424,917

0.47

July 2030

December 8,
2021

66,31075,377

2.14

December
2026

146,118

145,250

Total- 44 -

The breakdown of long-term borrowings, including current portion, as of March 31, 2023 and 2024 was asfollows:(Millions of yen)
Financial institution

2023

2024

Interest
rate(%)

Maturity dateJapanese Bank

13,11913,1790.86

September 2029

Japanese Bank

1,471

1,477

0.73

September 2027

Japanese Bank

10,00010,0001.38

September 2025

Japanese Bank

9,679

9,750

0.53

August 2027

Japanese Bank

10,00010,0001.39

September 2025

Japanese Bank

9,696

9,755

0.55

June 2028

Japanese Bank

39,969–0.10

November 2023

Japanese Bank

49,81049,9100.32

April 2025

Japanese Bank

39,911

39,992

0.25

May 2024

Japanese Bank

10,00010,0000.40

May 2024

Other

281

303

Total

193,936

154,366

19. Other Financial Liabilities
The breakdown of other financial liabilities as of March 31, 2023 and 2024 was as follows:(Millions of yen)
2023

2024

Financial liabilities measured at fair value
through profit or loss
Derivative liabilities

1,216

2,483

8,226

7,119

Lease liabilities

57,16260,943Other

18,29919,36684,90389,911

23,23527,673

61,66862,23884,90389,911

Contingent consideration
Financial liabilities measured at amortized cost

Total
Current
Non-current
Total- 45 -

20. Provisions
The changes in provisions during the fiscal year ended March 31, 2024 were as follows:(Millions of yen)
Provision for
Provision for loss
product warranties
on litigation

Provision forduodenoscopemarket response

Other

Total

Balance at April 1, 2023

2,840

4,908

6,747

7,528

22,023

Increase during the year

11,531

216

757

5,414

17,918Decrease (Provisions used)(2,402)

(6)

(444)

(2,327)(5,179)(1,203)(190)(1,158)(572)(3,123)

314

742

–

985

2,041

Balance at March 31, 2024

11,080

5,670

5,902

11,02833,680Current

10,791

5,568

5,902

9,057

31,318

289

102

–

1,971

2,362

11,080

5,670

5,902

11,02833,680Decrease (Provisions
reversed)
Exchange differences ontranslation of foreign
operations

Non-current
Total

Note: Provision for product warranties included the ¥2,292 million expected to be needed for a voluntary recall of small intestine
endoscope systems and provision of ¥5,238 million for market corrective measures for high-flow insufflation units.

(1) Provision for product warranties
For products sold subject to a quality assurance warranty, Olympus Corporation accrues after service costand recall cost expected to be incurred within the guarantee period. After service cost is calculated using
the prescribed standards, based on after service cost actually incurred in the past, and is expected to be
expended during the guarantee period (mostly within three years). For recall cost, the amount deemednecessary for recalls was reasonably estimated and recorded as a provision.
(2) Provision for loss on litigation
To provide for losses related to lawsuits or other litigation, in light of progress of the lawsuits, theexpected amount of these losses is accounted for based on a reasonable estimate of the amount deemednecessary. These loss provisions are expected to be expended mostly within one year.
(3) Provision for duodenoscope market response
Olympus Corporation has decided to voluntarily replace the old type of duodenoscopes with a fixed tip
cap with the new type with a removable tip cap, which is easier to clean and disinfect, against thebackground of obtaining regulatory approval for the new type of duodenoscopes with a removable tip cap
in the United States. The amount deemed necessary to carry out this market response was reasonably
estimated and recorded as a provision.

- 46 -

21. Other Current Liabilities and Other Non-current Liabilities
The breakdown of other current liabilities and other non-current liabilities as of March 31, 2023 and 2024 was
as follows:(Millions of yen)
2023

2024

Accrued expenses

106,458

130,095

Contract liabilities

55,53365,616

Other

20,04025,024

182,031

220,735

163,837
18,194202,203
18,532

182,031

220,735

Total
Current
Non-current
Total

22. Government Grants
Government grants included in other current liabilities and other non-current liabilities as of March 31, 2023
and 2024 were as follows:(Millions of yen)
2023
Other current liabilities
Other non-current liabilities

2024
285
1,753

279
1,473

Government grants were conditioned on acquiring equipment in a specific medical field in Japan and they areamortized over the useful life of their related assets on a straight-line basis.
There are no unfulfilled conditions or contingencies related to these grants.

23. Employee Benefits
Olympus Corporation and some of its consolidated subsidiaries have established defined benefit corporate
pension plans, defined contribution pension plans and lump sum payment plans to fund employees’ retirement
benefits.
The defined benefit corporate pension plans are cash balance plans that use a point system. In these plans,points are awarded to the plan participants based on their job performance and interest points calculated using
an interest crediting rate based on trends in market interest rates accumulate in the participants’ hypotheticalindividual accounts.
The Olympus Group, its pension funds and institutions that manage its plan assets are legally required tofaithfully administer and manage plan assets in the aim of providing reliable pension benefits to plan
participants into the indefinite future. They fulfill their management responsibilities in accord with basic
policies prepared by the funds.
The Olympus Group’s retirement benefit plans are exposed to multiple risks, including investment risks
associated with plan assets and interest rate risk associated with defined benefit obligations.
(1) Defined benefit plans(i)

Reconciliation of defined benefit obligations
The changes in defined benefit obligations were as follows:- 47 -

(Millions of yen)
2023

2024

Balance at April 1

175,633

152,636

Current service cost

6,410

5,690

Past service cost

(80)

(9)

Interest cost

3,235

4,260

(366)

104

(20,351)(5,527)

Remeasurements of defined benefit plans
Actuarial gains and losses arising from changes indemographic assumptions
Actuarial gains and losses arising from changes infinancial assumptions

2,954

2,539

Contributions by employees
Benefits paid

Other

151
(7,283)203(8,682)

Transfer to liabilities associated with assets held for sale

(12,751)–

Exchange differences on translation of foreign
operations

5,101

8,723

Other

(17)

(47)

152,636

159,890

Balance at March 31(ii) Reconciliation of fair value of plan assets
The change in the fair value of plan assets during the fiscal years ended March 31, 2023 and March
31, 2024 is presented below.
The Olympus Group conducts a financial verification based on Olympus Corporation’s corporate
pension rules at the end of every fiscal year to ascertain the extent of any funding deficit anddetermine whether contributions need to be recalculated.
In the fiscal year ending March 31, 2025, the Olympus Group plans to contribute ¥3,505 million to
the plan.
(Millions of yen)
2023

2024

Balance at April 1

161,607

159,248

Interest income
Remeasurements

2,669

4,539

Return on plan assets(8,546)

3,424

Contributions by employer

19,572Contributions by employees

160

7,079
204

Benefits paid

(6,449)(7,622)

Transfer to liabilities associated with assets held for saleExchange differences on translation of foreign
operations
Other(12,924)

–
9,309

(142)

(62)

Balance at March 31

159,248

176,119

3,301(iii) Reconciliation of defined benefit obligations and plan assets
The reconciliation between the defined benefit obligations and plan assets and the retirement benefit
liability and asset recognized in the consolidated statement of financial position was as follows:- 48 -

(Millions of yen)
2023
Present value of the funded defined benefit
obligations
Fair value of plan assets

2024
143,972

136,957(159,248)(176,119)

SubtotalPresent value of the unfunded defined benefit
obligations(22,291)(32,147)
15,918Net defined benefit liabilities (assets)(6,612)(16,229)

Amounts recognized in the consolidated statement of financial position
Retirement benefit liability
Retirement benefit asset

20,416(27,028)

20,586(36,815)

Net defined benefit liabilities (assets)(6,612)(16,229)

15,679(iv) Components of plan assets
The breakdown of plan assets by category was as follows:(Millions of yen)
2023

2024

Assets with quoted market prices in an active
marketJapanese equity securities

1,368

1,515

Overseas debt securities
Cash and cash equivalents

556
11,170613
12,821

Total

13,094

14,949Assets without quoted market prices in an active
marketOverseas equity securities
Overseas debt securities
General account for life insurance companies

13,18828,15046,626

6,832
45,73945,69849,070

Jointly managed money trust

45,943

Other (Note)

12,247

13,831

Total

146,154

161,170

Total of plan assets

159,248

176,119

Note: Insurance contracts concluded through annuity buy-in transactions included in “Other” amounted to ¥9,707 million and¥10,927 million as of the end of the fiscal years ended March 31, 2023 and 2024, respectively.

To reliably pay defined benefit obligations into the indefinite future, plan assets in the Olympus
Group’s corporate pension funds are managed safely and efficiently in the aim of generating
medium- to long-term investment returns in excess of the minimum rate of return required tomaintain the plans. To do so, the pension funds carefully ascertain their risk tolerance, determine an
optimal asset allocation within those risk constraints and invest in a diversified portfolio of assets.

- 49 -

(v) Matters related to actuarial assumptions
The main significant actuarial assumptions used to measure present value of defined benefit
obligations were as follows:
2023

2024

Discount rate

2.60%

3.12%

(vi) Sensitivity analysis
In the event of a 0.5% change in the discount rate used in the actuarial calculation, the present valueof the defined benefit obligations would be affected as shown below. This analysis assumes that allother variables remain constant. In actuality, however, the sensitivity analysis may be affected bychanges in other assumptions.
(Millions of yen)
2023

2024

Discount rate
0.5% increase (decrease in obligations)(8,717)(7,758)

0.5% decrease (increase in obligations)

10,12011,948(vii) Weighted average duration
The weighted average durations of the defined benefit obligations were 13.2 years and 13.0 years asof March 31, 2023 and 2024, respectively.
(2) Defined contribution plans
The amounts recognized as expenses related to the defined contribution plan were ¥18,783 million and¥20,966 million for the fiscal years ended March 31, 2023 and 2024, respectively, and included expenses
recognized in relation to the public pension system.

24. Share Capital and Other Components of Equity(1) Number of authorized shares, issued shares and treasury shares
The changes in the number of authorized shares, issued shares and treasury shares were as follows:
Number of shares
2023

2024

Authorized shares

4,000,000,000

4,000,000,000

Issued shares (Note 1)
As of April 1

1,299,294,333

1,266,178,700

Increase or decrease (Note 2) (Note 3)(33,115,633)(51,032,000)

As of March 31

1,266,178,700

1,215,146,700

As of April 1

26,261,612

12,641,218

Increase or decrease (Note 5) (Note 6)(13,620,394)

36,873,689

As of March 31

12,641,218

49,514,907

Treasury shares (Note 4)- 50 -

Notes: 1. All of the shares of Olympus Corporation are ordinary shares that have no par value and no limitations on the rights.
Issued shares are fully paid.
2. The decrease in the fiscal year ended March 31, 2023, was due to the cancellation of 13,402,333 shares of treasury
shares and 19,713,300 shares of treasury shares conducted effectively on June 8, 2022 and March 28, 2023,
respectively.
3. The decrease in the fiscal year ended March 31, 2024, was due to the cancellation of 51,032,000 shares of treasury
shares conducted effectively on February 29, 2024.
4. Olympus Corporation has adopted stock option plans and utilizes treasury shares for delivery of shares due toexercise. Contract conditions and amounts are described in Note “27. Stock-based Compensation.”
5. The main changes in the fiscal year ended March 31, 2023, were a decrease of 13,402,333 shares due to thecancellation of treasury shares conducted effectively on June 8, 2022, an increase of 19,713,300 shares due to theshare repurchase conducted between November 14, 2022, and January 18, 2023 on a delivery date basis and adecrease of 19,713,300 shares due to the cancellation of treasury shares conducted effectively on March 28, 2023.
6. The main changes in the fiscal year ended March 31, 2024, were an increase of 51,032,000 shares due to the share
repurchase conducted between May 15, 2023, and November 8, 2023 on a delivery date basis, an increase of
37,446,500 shares due to the share repurchase conducted between November 10, 2023, and March 26, 2024 on adelivery date basis and a decrease of 51,032,000 shares due to the cancellation of treasury shares conductedeffectively on February 29, 2024.

(2) Capital surplus
Japan’s Companies Act provides that at least one-half of capital paid in or contributed in exchange for
newly issued shares is to be classified as share capital and any amount not classified as share capital is to
be classified as legal capital surplus included in capital surplus.
Additionally, legal capital surplus may be reclassified as share capital pursuant to a shareholder resolution
at a General Meeting of Shareholders.
(3) Retained earnings
Japan’s Companies Act provides that one-tenth of the amount of reductions in surplus due to dividend
distributions funded by the surplus is to be accumulated as legal capital surplus or legal retained earnings
until the total of legal capital surplus and legal retained earnings equals one-quarter of share capital.
Accumulated legal retained earnings may be appropriated to reduce a capital deficit. They may also be
utilized pursuant to a shareholder resolution at a General Meeting of Shareholders.
The amount of Olympus Corporation’s retained earnings distributable as dividends is measured based on
the amount of retained earnings carried on Olympus Corporation’s accounting books prepared inaccordance with accounting principles generally accepted in Japan.
Additionally, the Companies Act imposes certain restrictions on how the amount of retained earnings
distributable as dividends is measured. Olympus Corporation distributes retained earnings within theconstraints stipulated by those restrictions.
(4) Other components of equity
The changes in other components of equity were as follows:- 51 -

(Millions of yen)Exchangedifferences ontranslation offoreign
operations

Cash flow hedges

Financial assets
measured at fairvalue through othercomprehensive
income36,582(2,501)

737–

34,81847,093(1,280)

(84)

7,320

53,049

–

–

(233)

(7,320)(7,553)(3,019)

–

(15)

–

(3,034)80,656(3,781)

405–

77,28069,011

(177)

(20)

4,682

73,496––(1)(4,682)(4,683)

3,019

–

15

–

3,034

152,686(3,958)399–

149,127

Balance at March 31,
2022
Other comprehensive
incomeReclassification toretained earnings
Transfer to othercomponents of equity
related to disposalgroup held for sale
Balance at March 31,
2023
Other comprehensive
incomeReclassification toretained earnings
Transfer to othercomponents of equity
related to disposalgroup held for sale
Balance at March 31,
2024

(i)

Remeasurements ofdefined benefit plans

Total

Exchange differences on translation of foreign operations
Exchange differences that arise when foreign operations’ financial statements prepared in a foreign
currency are consolidated.

(ii) Cash flow hedges
Olympus Corporation hedges to avert the risk of changes in future cash flows. Changes in the fairvalue of derivatives designated as cash flow hedges are recognized in other comprehensive income
to the extent the hedges are deemed effective.
(iii) Financial assets measured at fair value through other comprehensive income
Valuation gains/losses on financial assets measured at fair value through other comprehensive
income.
(iv) Remeasurements of defined benefit plans
Changes in defined benefit obligations due to actuarial gains/losses and the effects of changes in
actuarial assumptions; they are recognized in other comprehensive income when they occur and
immediately transferred from other components of equity to retained earnings.

25. Capital Policy
To enhance its corporate value, the Olympus Group has adopted a basic policy, premised on maintaining astable financial foundation, of continually returning value to shareholders while placing priority on investingin growth businesses.
The Olympus Group manages all of its equity and interest-bearing debt as components of its capital cost.
Cognizant of financial stability and capital efficiency, the Olympus Group aims to improve its credit ratings- 52 -

issued by rating agencies to more readily procure funding globally. The Olympus Group is not subject to any
significant capital restrictions (except for general provisions stipulated in Japan’s Companies Act).
The Olympus Group has designated adjusted earnings per share (adjusted EPS) as an equity-related key
performance indicator. In the company strategy announced on May 12, 2023, the Olympus Group has defineda target of achieving an adjusted EPS CAGR of more than 8% from the fiscal year ended March 31, 2024
through the fiscal year ending March 31, 2026 starting from the fiscal year ended March 31, 2023.
(Yen)
2023
Adjusted EPS (Note 1)

2024
96.09

83.91

Note: This is EPS after adjusting special factors, and the amount differs from the amount shown in Note “32. Earnings per share.”
In calculating adjusted EPS, other income and other expenses, etc., are excluded from profit, which is the basis for the
calculation.

26. Dividends
Dividends paid during the fiscal year ended March 31, 2023 were as follows:

Resolution

Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

May 11, 2022
Board of Directors

Common stock

17,822

14

Record date

Effective date

March 31, 2022

June 3, 2022

Dividends paid during the fiscal year ended March 31, 2024 were as follows:
Resolution

Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

May 12, 2023
Board of Directors

Common stock

20,057

16

Record date

Effective date

March 31, 2023

June 6, 2023

Dividends for which the record date falls in the current fiscal year and the effective date is in the following
fiscal year are as follows:
Resolution

Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

May 10, 2024
Board of Directors

Common stock

20,98118

Record date

Effective date

March 31, 2024

June 5, 2024

27. Stock-based Compensation
The Olympus Group has adopted equity-settled stock option plans for directors, executive officers, corporate
officers, and senior management of Olympus Corporation and its subsidiaries (hereinafter the “Employees of
the Olympus Group”) with the aim of enhancing awareness toward contributing to sustainable improvementof corporate value as well as further enhancing value sharing with shareholders of Olympus Corporation.

- 53 -

(1) Stock Options(i)

Overview of stock option plans
Under the stock option plans, grantees are granted 400 shares of common stock of Olympus
Corporation per subscription right to shares.
The grants are not subject to vesting conditions, but holders of subscription rights to shares may
exercise their subscription rights to shares only during a 10-year period beginning one year from the
day after the date on which they vacate their position as a director, executive officer or corporate
officers of Olympus Corporation (or the date on which they vacate their position as an Audit &Supervisory Board Member if they were appointed to the Audit & Supervisory Board Members after
vacating their position as a director or corporate officer). If not exercised within the exercise period,
the options become null and void. Olympus Corporation introduced a restricted stock compensation
system and performance-based stock compensation system from the fiscal year ended March 31,
2018, and new application of the stock option plan was suspended No stock options have been
granted since such time. The exercise period for stock options already granted ends on July 13,2046.

(ii) Outline of stock options
Number of shares
granted(shares)

Grant date
First series of stock
subscription rights
The second
subscription rights toshares
The third subscription
rights to shares
The fourth subscription
rights to shares

Exercise price(Yen)

Exercise period

August 26, 2013

160,400

1

From August 27, 2013
to August 26, 2043

July 11, 2014

164,000

1

From July 12, 2014 to
July 11, 2044

July 13, 2015

154,800

1

July 13, 2016

158,000

1

From July 14, 2015 toJuly 13, 2045
From July 14, 2016 toJuly 13, 2046

Note: The number of stock options is presented as the number of underlying shares.

(iii) Movement in number of stock options and weighted average exercise price
2023

2024

Number of equity
securities(shares)

Weighted average
exercise price(Yen)

Number of equity
securities(shares)

Weighted average
exercise price(Yen)

429,600

1

302,800

1

–

–

–

–

(126,800)1(20,400)

1

–

–

–

–

Outstanding at end of year

302,800

1

282,400

1

Exercisable at end of year

148,400

1

161,600

1

Outstanding at beginning of year
GrantedExercised
ExpiredNotes: 1. The number of stock options is presented as the number of underlying shares.
2. The weighted average share prices of stock options at the time of exercise were ¥2,474 and ¥2,425 for the fiscal
years ended March 31, 2023 and 2024, respectively.
3. The weighted average remaining lives of unexercised stock options year were 22.0 years and 21.0 years as of March
31, 2023 and 2024, respectively.

- 54 -

(2) Performance-based stock compensation (PSU: Performance Share Unit) system(i)

Overview of Performance Share Unit (PSU) system (hereinafter the “PSU system”)
The PSU system is for executive officers and corporate officers of Olympus Corporation, and the
Employees of the Olympus Group (hereinafter the “Eligible Persons”).
Under the PSU system, at the beginning of the performance evaluation period, the standard numberof common stock units to be delivered after the end of the performance evaluation period isdetermined based on the amount of basic salary. The number of share units to be allotted is thenumber of the standard number of common stock units multiplied by the payment rate determinedaccording to the degree of attainment at the end of the performance period. The Eligible Persons
wholly transfer their rights to monetary compensation receivable equivalent to the number of suchallotted share units as in kind property contributions and receive newly issued shares of Olympus
Corporation’s common stock. The performance evaluation period is three fiscal years, and theCompensation Committee determines the payment rate within the predetermined range according to
the degree of attainment, at the end of the performance evaluation period, of predetermined
performance evaluation indicators and targets set by the Compensation Committee. The
performance evaluation indicators and targets at the start of the performance evaluation period andthe payment rate at the end of the performance evaluation period for corporate officers and the
Employees of the Olympus Group are determined by the Representative Executive Officer.

(ii) Number of shares granted during the year and fair value at grant date
The weighted average fair value at the grant date under this plan for the fiscal years ended March
31, 2023 and 2024 were ¥2,307 and ¥2,257, respectively. The number of shares delivered
correspond to the directors’ standard variable compensation calculated based on their position andadjusted within the predetermined range based on the degree of attainment, as of the end of the threefiscal years, of predetermined performance evaluation targets set by the Compensation Committee
or Representative Executive Officer as described above in (2) (i).
(3) Restricted Stock Unit system(i)

Overview of Restricted Stock Unit system (hereinafter the “RSU system”)
The RSU system is for directors, executive officers and corporate officers of Olympus Corporation,and the Employees of the Olympus Group (hereinafter the “Eligible Persons”).
Under the RSU system, on the condition that the eligible persons remain employed by Olympus
Corporation during the vesting period, the eligible persons are granted the right to acquire thepredetermined number of shares of Olympus Corporation’s common stock at a predetermined time
based on the amount of basic salary, etc. at the beginning of the transfer restriction period. The
Eligible Persons wholly transfer all their rights to monetary compensation receivable according tothat number of granted units after the end of the vesting period as in kind property contributions andreceive newly issued shares of Olympus Corporation’s common stock.
RSUs are paid as newly issued shares of the Company’s common stock for Directors who live inJapan at the time of retirement in principle, and for Directors who do not live in Japan after the
standard vesting period in their region. The vesting period of RSUs for executive officers, corporate
officers and the Employees of the Olympus Group was three fiscal years until the fiscal year ended
March 31, 2022, and the number of shares equivalent to all the granted units was delivered after thevesting period. From the fiscal year ended March 31, 2023, shares are delivered by one-third of thenumber of granted units each fiscal year.

(ii) Number of shares granted during the year and fair value at grant date
The weighted average fair value at the grant date under this plan for the fiscal years ended March
31, 2023 and 2024 were ¥2,236 and ¥2,269, respectively. As for the number of shares, Olympus
Corporation’s common stock determined by Olympus Corporation in advance are delivered after theend of the vesting period as stated in (3) (i) above.
- 55 -

(4) Stock compensation expenses(Millions of yen)
2023
Selling, general and administrative expenses

2024
1,690

2,579

28. Revenue(1) Disaggregation of Revenue
The organization of the Olympus Group has basically consisted of the Endoscopic Solutions Business,
Therapeutic Solutions Business, Scientific Solutions Business, and Others, but, from the second quarter
ended September 30, 2022, the organization has been changed to basically consist of the Endoscopic
Solutions Business, Therapeutic Solutions Business, and Others. The change is due to Olympus
Corporation classifying the Scientific Solutions Business as a discontinued operation with the conclusionof a share transfer agreement related to the transfer of Scientific Solutions Business of the Olympus
Group with K.K. BCJ-66, a special purpose company indirectly owned by funds advised by Bain Capital.
Revenue recorded in Endoscopic Solutions Business, Therapeutic Solutions Business and Others is statedas 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
and assess business performance. Revenue is geographically disaggregated by customer location.
Relationship between the disaggregated revenue and revenue of each reportable segment is as follows:
For the fiscal year ended March 31, 2023
(Millions of yen)
Endoscopic Solutions Therapeutic Solutions

Others

Total

Japan

70,472

46,1705,874

122,516

North America

198,134

123,874

159

322,167

Europe134,30782,411

5,446

222,164

China

82,90634,147

41

117,094

Asia and Oceania

51,891

25,543373

77,807

Others

14,1136,062

020,175551,823

318,207

11,893881,923

483,667

307,679

11,893803,239

68,156

10,528–78,684

Total
Revenue from contracts withcustomers
Revenue from other sources

Note: Revenue from other sources includes revenue from lease contracts as defined under IFRS 16.

- 56 -

For the fiscal year ended March 31, 2024
(Millions of yen)
Endoscopic Solutions Therapeutic Solutions

Others

Total

Japan

71,89244,495

5,128

121,515

North America

216,565

134,666106

351,337

Europe145,931

90,714

6,180

242,825

China

74,95030,748643

106,341

Asia and Oceania

58,97928,897

205

88,081Others

18,3007,811

026,111

586,617337,331

12,262936,210

508,888326,167

12,262

847,31777,729

11,164–88,893

Total
Revenue from contracts withcustomers
Revenue from other sources

Note: Revenue from other sources includes revenue from lease contracts as defined under IFRS 16.

(i)

Endoscopic Solutions Business
The Endoscopic Solutions Business sells medical devices, including gastrointestinal endoscopes andsurgical endoscopes, 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.
Regarding the sale of products by the Endoscopic Solutions Business, when control over products istransferred to a customer—at the time Olympus Corporation delivers the products to the customer—
the legal title to the products and physical possession of the products, and significant risks andrewards of ownership of the products are transferred to the customer; then Olympus Corporation
obtains the right to receive payments from the customer. At that point, Olympus Corporation
recognizes the revenue. The revenue from the sale of products is measured in transaction prices
related to the contract with the customer. Olympus Corporation receives a consideration for atransaction primarily within a year after satisfaction of performance obligations, and theconsideration does not include a significant financial component. In respect of transactions thatconsist of multiple components, such as products and maintenance service, Olympus Corporation
treats each component as a separate performance obligation when products to sell and services torender have an independent value on their own, and the total transaction amount is proportionallyallocated based on the individual sales prices of the components.
In regard to maintenance contracts concerning medical devices, because performance obligations are
satisfied over the passage of time, the transaction amount related to the contract with a customer isrecognized as revenue spread evenly over the contract period. Generally, Olympus Corporation
receives a consideration for a transaction in a lump sum as advance payment at the time the contract
is concluded.
Lease transactions for medical devices as the lessor are recorded in accordance with Note “3.
Material Accounting Policies, (10) Leases.” Olympus Corporation receives lease fees concerning
leasing contracts based on payment conditions specified in individual contracts.

(ii) Therapeutic Solutions Business
The Therapeutic Solution Business sells medical devices, including gastroenterology devices,
urology products, respiratory products, energy devices, ENT products, and gynecology products, tocustomers who are primarily medical institutions in Japan and overseas.
Regarding the sale of products by the Therapeutic Solutions Business, when control over products istransferred to a customer—at the time Olympus Corporation delivers the products to the customer—
the legal title to the products and physical possession of the products, and significant risks andrewards of ownership of the products are transferred to the customer; then Olympus Corporation
obtains the right to receive payments from the customer. At that point, Olympus Corporation
recognizes the revenue. The revenue from the sale of products is measured in transaction prices- 57 -

related to the contract with the customer. Olympus Corporation receives a consideration for atransaction primarily within a year after satisfaction of performance obligations, and theconsideration does not include a significant financial component.
(iii) Other Businesses
Other businesses include R&D and exploratory activities for new businesses, in addition to sales ofbiomedical materials and orthopedic equipment.
(2) Contract balances
The balances of receivables from contracts with customers, and contract assets and contract liabilities
were as follows:
For the fiscal year ended March 31, 2023
(Millions of yen)
April 1, 2022
Receivables from contracts with customers

March 31, 2023
145,912137,177

Contract assets

728

1,239

Contract liabilities

53,65055,533For the fiscal year ended March 31, 2024
(Millions of yen)
April 1, 2023
Receivables from contracts with customers

March 31, 2024
137,177

146,956

Contract assets

1,239

220

Contract liabilities

55,53365,616In the consolidated statement of financial position, receivables from contracts with customers andcontract assets are included in trade and other receivables and contract liabilities are included in othercurrent liabilities and other non-current liabilities.
Contract assets are related to consideration for performance that has been completed but not been charged
on the reporting date. Contract assets are reclassified to receivables when the right to payment becomes
unconditional. Contract liabilities are advances from customers who first made some or all of the payment
even though service had not yet been provided to the customer, primarily for maintenance contracts.
The amounts of revenues from continuing operations recognized during the fiscal years ended March 31,
2023 and 2024 which were included in contract liabilities at the beginning of the period were ¥50,919
million and ¥55,521 million, respectively. In addition, for the fiscal years ended March 31, 2023 and2024, the amounts of revenue recognized from performance obligation satisfied (or partly satisfied) in theprevious period are immaterial.
(3) Transaction price allocated to the remaining performance obligations
The amounts of revenue by timing of satisfaction of remaining performance obligations are as follows:
Olympus Corporation has applied the practical expedient and does not disclose transactions of which the
expected contract period is within one year or less.
(Millions of yen)
2023
Within 1 year2024
18,068- 58 -

22,936

2023

2024

Over 1 year

12,074

11,838

Total

30,142

34,77329. Selling, General and Administrative Expenses
Major items of selling, general and administrative expenses for the fiscal years ended March 31, 2023 and2024 were as follows:(Millions of yen)2023
Personnel expenses (Note)
Depreciation
Advertising and promotion expenses

2024
231,862
34,151
15,448

264,627
35,293
16,193

Note: Personnel expenses mainly include wages, bonuses, legal welfare expenses, expenses related to post-employment benefits,
and personnel expenses incurred by the development division.

30. Other Income and Other Expenses(1) Other income
Major items of other income are as follows.
Fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Gain on sale of fixed assets)
Olympus Corporation recorded gain on sale of land in Hatagaya of ¥16,395 million in “Other income.”(Change in fair value of contingent consideration, which is a portion of acquisition consideration)
Olympus Corporation recognized ¥1,381 million in “Other income” due to adjustments to the originalacquisition consideration at the time of acquisition resulting from changes in the fair value of thecontingent consideration, which makes up part of the acquisition consideration of Medi-Tate Ltd. For
details on the change in fair value, please see Note “40. Business Combinations.”
Fiscal year ended March 31, 2024 (April 1, 2023 – March 31, 2024)(Transfer of collagen business and dental product sales businesses)
Olympus Corporation recorded a gain of ¥1,127 million associated with the loss of control of the collagenbusiness and dental product sales businesses in “Other income.” Details are described in Note “34. Cash
Flow Information.”(2) Other expenses
Major items of other expenses are as follows.
Fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Business restructuring expenses)- 59 -

Olympus Corporation recorded ¥2,361 million for the cost related to promotion of the business
transformation plan “Transform Olympus” in “Other expenses.”(Quality-related expenses)
In order to comply with quality laws and regulation for medical device of global regulatory authorities,
we must strengthen our quality management systems. An expense of ¥1,937 million was incurred in“Other expenses” to ensure we strengthen our global quality management system and to improve targetedareas including complaint handling and response, medical device reporting (MDR), and process design
validation.
Fiscal year ended March 31, 2024 (April 1, 2023 – March 31, 2024)(Quality-related expenses)
In order to comply with quality laws and regulation for medical device of global regulatory authorities,
we must strengthen our quality management systems. An expense of ¥23,041 million was incurred in“Other expenses” to ensure we strengthen our global quality management system and to improve targetedareas including complaint handling and response, medical device reporting (MDR), and process design
validation.
(Losses associated with the discontinuation of manufacture and sale of products from Veran Medical
Technologies, Inc.)
A loss of ¥51,886 million (¥2,337 million for loss on valuation of inventories; ¥41,704 million for
impairment loss on non-current assets (Note); ¥7,846 million for expenses related to the voluntary recallof products) associated with the discontinuation of manufacture and sale of products from Veran Medical
Technologies, Inc.’s electromagnetic navigation systems was recorded in “Other expenses.”
Note:

Details of impairment losses on non-current assets are as described in Note “16. Impairment ofNon-financial Assets.”(Impairment losses on development assets and research and development in progress)
Olympus Corporation recognized impairment losses of ¥6,002 million and ¥4,565 million on
development assets and research and development in progress, respectively, in the Endoscopic Solutions
Business, which were written down to their recoverable amount since Olympus Corporation no longer
expects them to generate the expected earnings at the time of acquisition due to such factors as changes in
the market environment, and recorded the losses in “Other expenses.” Olympus Corporation recognizedimpairment losses of ¥2,346 million on development assets in Therapeutic Solutions Business, whichwere written down to their recoverable amount since Olympus Corporation no longer expects them togenerate the expected earnings at the time of acquisition due to such factors as changes in the market
environment, and recorded the losses in “Other expenses.”
Details are as described in Note “16. Impairment of Non-financial Assets.”(Implementation of career support system for external opportunity)
Olympus Corporation recorded ¥5,851 million in “Other expenses” as expenses incurred in the provisionof special additional payment and re-employment support services under the career support system forexternal opportunity implemented by Olympus Corporation and its group companies.
(Conclusion and cancellation of share purchase agreement)
Effective March 7, 2024, Olympus Corporation reached an agreement with the former shareholders ofSouth Korean medical device manufacturer Taewoong Medical Co., Ltd. to rescind the definitive
agreement to acquire shares concluded on February 24, 2023. Olympus Corporation recorded ¥1,966- 60 -

million in “Other expenses” as expenses related to the conclusion and cancellation of the share purchaseagreement.
(Loss related to orthopedic surgery business)
The loss of ¥8,588 million related to the orthopedic surgery business is recorded in other expenses(¥3,802 million for impairment loss on goodwill; ¥2,356 million for impairment loss on intangible assets
excluding goodwill; and ¥2,430 million for impairment loss on property, plant and equipment (Note)).
Note:

Details of impairment losses on non-current assets are as described in Note “16. Impairment ofNon-financial Assets.”

31. Finance Income and Finance Costs
The breakdown of finance income and finance costs for the fiscal years ended March 31, 2023 and 2024 was
as follows:(Millions of yen)
2023
Finance income
Interest income
Financial assets measured at amortized cost
Dividends income
Financial assets measured through othercomprehensive income
Other
Total
Finance costs
Interest expenses
Financial liabilities measured at amortized cost
Interest on bonds
Financial liabilities measured at amortized cost
Foreign exchange loss (Note 1)
Other
Total

2024

3,702

2,365

38

11

120

186

3,860

2,562

4,974

4,575

891
2,141
169

834
4,487
410

8,175

10,306

Notes: 1. Valuation gains or losses on currency derivatives that are not designated as hedges are included in foreign exchange gainor loss.
2. Fee income and expenses arising financial assets measured at amortized cost are immaterial.

32. Earnings per Share(1) Basic earnings per share and diluted earnings per share
2023
Basic earnings per share (yen)Continuing operations
Discontinued operation
Basic earnings per share
Diluted earnings per share (yen)Continuing operations- 61 -

2024

108.784.44
113.2221.93
177.98199.91108.65

21.88

2023
Discontinued operation
Diluted earnings per share

2024
4.43
113.08177.56
199.44(2) The basis for calculating basic earnings per share and diluted earnings per share
2023

2024

Profit used to calculate basic earnings per share and diluted earnings per share
Profit attributable to owners of parent(Millions of yen)

143,432

242,566

Profit not attributable to owners of parent(Millions of yen)––

Profit used to calculate basic earnings per share(Millionsof yen)143,432

242,566

Continuing operations
Discontinued operation
Adjustment to profit(Millions of yen)

137,809
5,623–

26,610215,956–

143,432

242,566

137,809
5,623

26,610215,956

Profit used to calculate diluted earnings per
share(Millions of yen)
Continuing operations
Discontinued operation

The weighted average number of shares of common stock used to calculate basic earnings per share and diluted earnings per share
The weighted average number of shares of common
stock(thousand shares)
Increase in number of shares of common stock
Subscription rights to shares relating to stock
options(thousand shares)

1,266,848

1,213,402

373

291

Common stock relating to PSU(thousand shares)

744

1,927

Common stock relating to RSU(thousand shares)

406

621

The weighted average number of shares of diluted
common stock during the period(thousand shares)

1,268,371

1,216,241- 62 -

33. Other Comprehensive Income
The breakdown of each component of other comprehensive income (including non-controlling interests) for
the fiscal years ended March 31, 2023 and 2024 was as follows:(Millions of yen)
2023

2024

Items that will not be reclassified to profit or loss
Financial assets measured at fair value through other comprehensive income
Amount arising during the year

(103)

(60)

19

40

(84)

(20)

9,217

6,308

Tax effect(1,897)(1,626)

Remeasurements of defined benefit plans

7,320

4,682

Total of items that will not be reclassified to profit or loss

7,236

4,662

Amount arising during the year

47,09369,011

Reclassification adjustments
Before tax effectTax effect–
47,093––69,011–47,09369,011

3,683

8,669

Tax effectFinancial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Amount arising during the year

Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations

Exchange differences on translation of foreign
operations
Cash flow hedges
Amount arising during the year
Reclassification adjustments(5,527)(8,924)

Before tax effectTax effect(1,844)
564

(255)
78

Cash flow hedges(1,280)(177)

Total of items that may be reclassified to profit or loss

45,813

68,834

Total other comprehensive income

53,04973,496

34. Cash Flow Information(1) Non-cash transactions
The major non-cash transactions are follows:(Millions of yen)
2023
Right-of-use assets acquired through lease transactions

2024
15,109- 63 -

14,838

(2) Liabilities arising from financing activities
The changes in liabilities arising from financing activities were as follows:
Fiscal year ended March 31, 2023
(Millions of yen)

Balance atApril 1

Movement
due to cash
inflows/
outflows
fromfinancing
activities

67

Bonds (Note)

Non-cash items
Increase due
to new lease

Exchangedifferences ontranslation offoreign
operations

(67)

–

2

1

3

180,322(40,000)

–

–

5,796

146,118

Long-term borrowings (Note)

205,738(13,547)

–

1,326

419

193,936

Lease liabilities (Note)

65,015(20,914)

15,1093,690(5,738)57,162

Short-term borrowings

Balance at
March 31

Other

Note: Balances redeemable within one year are included.

Fiscal year ended March 31, 2024
(Millions of yen)

Balance atApril 1

Movement
due to cash
inflows/
outflows
fromfinancing
activities

3

Bonds (Note)

Non-cash items
Increase due
to new lease

Exchangedifferences ontranslation offoreign
operations

(3)

–

–

–

–

146,118(10,000)

–

–

9,132

145,250

Long-term borrowings (Note)

193,936(40,000)

–

33

397

154,366

Lease liabilities (Note)

57,162(19,518)

14,838

5,801

2,660

60,943

Short-term borrowings

Balance at
March 31

Other

Note: Balances redeemable within one year are included.

(3) Payments for acquisition of business
There is no income or expenses from significant business acquisitions during the fiscal years ended
March 31, 2023 and 2024.
(4) Payments for acquisition of subsidiaries
A reconciliation of the consideration paid for the acquisition of subsidiaries and payments for acquisition
was as follows:- 64 -

(Millions of yen)
2023

2024

Consideration for acquisitions paid in cash

4,008

–

Cash and cash equivalents of assets acquired, at thetime the Olympus Group obtained control of thesubsidiaries

(149)

–

Payments for acquisition of subsidiaries

3,859

–

(5) Loss of control
Fiscal year ended March 31, 2023
No items to report
Fiscal year ended March 31, 2024
(Transfer of Scientific Solutions Business)(i)

Overview of transaction
On August 29, 2022, Olympus Corporation concluded an agreement to transfer all shares of its
consolidated subsidiary, Evident Corporation (hereinafter, “Evident”), which operates the
Scientific Solutions Business, to K.K. BCJ-66, a special purpose company indirectly owned byfunds advised by Bain Capital, and completed the transfer procedures on April 3, 2023. As aresult of this, Olympus Corporation lost its control of Evident on the same day.

(ii) Assets and liabilities associated with the loss of control(Millions of yen)AmountCurrent assets

118,936

Non-current assets

50,119Total assets

169,055

Current liabilities

30,657

Non-current liabilities

12,497

Total liabilities

43,154(iii) Cash flows associated with the loss of control(Millions of yen)AmountCash and cash equivalents received as consideration of the loss ofcontrol

418,166

Expenses related to transfer of businesses(2,892)

Cash and cash equivalents of subsidiaries with the loss of control(36,183)

Proceeds from the transfer of Scientific Solutions Business (Note)

379,091

Note:

Proceeds from the transfer of Scientific Solutions Business are included in “Cash flows from investing activities”
in the Consolidated Statement of Cash Flows.

- 65 -

(iv) Gain or loss associated with the loss of control
Olympus Corporation recorded a gain of ¥349,037 million associated with the loss of control of
Evident in “Profit from discontinued operation” in the Consolidated Statement of Profit or Loss.
(Transfer of Gyrus Medical Limited)(i)

Overview of transaction
On April 21, 2023, Olympus Corporation concluded an agreement to transfer all shares of Gyrus
Medical Limited (“GML”), a consolidated subsidiary of Olympus Corporation, to ATLTECHNOLOGY UK HOLDINGS LIMITED.
Olympus Corporation lost its control of GML on the same day that the transfer of shares inaccordance with this share transfer agreement was completed.

(ii) Assets and liabilities associated with the loss of control(Millions of yen)AmountCurrent assets

2,226

Non-current assets

1,285

Total assets

3,511

Current liabilities

688

Non-current liabilities

17

Total liabilities

705(iii) Cash flows associated with the loss of control(Millions of yen)AmountCash and cash equivalents received as consideration of the loss ofcontrol

4,472

Cash and cash equivalents of subsidiaries with the loss of control(0)

Proceeds from sale of subsidiaries (Note)
Note:

4,472

Proceeds from sale of subsidiaries are included in “Cash flows from investing activities” in the Consolidated
Statement of Cash Flows.

(iv) Gain or loss associated with the loss of control
Olympus Corporation recorded a gain of ¥115 million associated with the loss of control of GML
in “Other income” in the Consolidated Statement of Profit or Loss.
(Transfer of collagen business and dental product sales businesses)(i)

Overview of transaction
On March 28, 2023, Olympus Terumo Biomaterials Corporation, a consolidated subsidiary of
Olympus Corporation, concluded a company split agreement with GC Corporation for thetransfer of the collagen products development, manufacture and sales business and dental
products sales business, which are included in the other businesses of the Olympus Group. The
transfer of the businesses in accordance with this agreement was completed on July 3, 2023. As a
- 66 -

result, Olympus Corporation lost its control of the collagen business and the dental product sales
businesses on that date.
(ii) Assets and liabilities associated with the loss of control(Millions of yen)AmountCurrent assets

158

Non-current assets

399

Total assets

557

Current liabilities

28

Non-current liabilities–

Total liabilities

28(iii) Cash flows associated with the loss of control(Millions of yen)AmountCash and cash equivalents received as consideration of the loss ofcontrol

1,769

Expenses related to transfer of businesses(113)

Proceeds from the transfer of the collagen business and dental
product sales businesses (Note)

1,656

Note:

Proceeds from the transfer of the collagen business and dental product sales businesses are included in “Cashflows from investing activities” in the Consolidated Statement of Cash Flows.

(iv) Gain or loss associated with the loss of control
Olympus Corporation recorded a gain of ¥1,127 million associated with the loss of control of thecollagen business and dental product sales businesses in “Other income” in the Consolidated
Statement of Profit or Loss.

35. Financial Instruments(1) Credit risk
Credit risk is the risk that a counterparty may default on its contractual obligations resulting in a financial
loss for the Olympus Group.
The Olympus Group is mainly exposed to the credit risk of customers and business counterparts onfinancial assets measured at amortized cost and of financial institutions that are counterparties toderivatives held for hedging foreign currency fluctuations and other financial risks.
The Olympus Group manages credit risk pertaining to financial assets measured at amortized cost byconducting credit investigations on major external customers and controls of due dates and outstandingbalances by customers in accordance with internal regulations, while promptly identifying doubtful
accounts caused by deteriorated financial conditions, etc., to reduce risks. Credit risk associated with
derivatives is reduced by limiting transactions to highly creditworthy financial institutions.
Financial assets measured at amortized cost are mainly classified into “trade receivables” that consist ofnotes receivable, accounts receivable and lease receivables and “receivables other than trade receivables.”The Olympus Group provides allowance for doubtful accounts for each receivable as follows.
- 67 -

“Trade receivables” are classified into three categories: receivables to “debtors that are not facing serious
problems in their management conditions,” receivables to “debtors that are facing serious problems inrepaying their debts,” and receivables to “debtors that are bankrupt,” according to the debtors’
management and financial conditions at the end of the reporting period. Allowance for doubtful accounts
is always recognized at an amount equal to expected credit losses for the remaining life of the assets foreach category.
“Debtors that are not facing serious problems in their management conditions” refer to those that have no
indication of problems in repaying their debts and no problems in ability to repay their debts. Allowancefor doubtful accounts on receivables from the debtors in this category is recorded collectively using aprovision ratio based on a historical loan loss ratio and future estimates.
“Debtors that are facing serious problems in repaying their debts” refer to those that are not in a state ofbankrupt but are facing, or will likely face, serious problems in repaying their debts. Allowance for
doubtful accounts on receivables from the debtors in this category is recorded based on the estimatedcollectable amount of the respective assets on an individual basis.
“Debtors that are bankrupt” refer to those that are legally or substantially bankrupt or in a state of serious
financial difficulty with no prospect of revitalization. Allowance for doubtful accounts on receivablesfrom the debtors in this category is recorded for all receivables excluding assets received as collateral orfor credit enhancement.
The Olympus Group evaluates at the end of each reporting period whether there is a significant increasein credit risk of “receivables other than trade receivables” since initial recognition. When there is no
significant increase in credit risk since initial recognition, the amount equal to expected credit losses for
12 months is recognized as allowance for doubtful accounts. When there is a significant increase in credit
risk since initial recognition, the amount equal to expected credit losses for the remaining life of thefinancial assets is recognized as allowance for doubtful accounts.
“A significant increase in credit risk” refers to a situation in which there are serious problems incollectibility of receivables at the end of the reporting period compared to that at the initial recognition.
When evaluating whether or not there is a significant increase in credit risk, the Olympus Group takes
into consideration reasonably available and supportable information, such as a debtor’s results ofoperations for past periods and management improvement plan, as well as past due information.
Allowance for doubtful accounts on “receivables other than trade receivables” is recognized using amethod to estimate credit losses collectively or individually according to the extent of the debtor’s credit
risk. However, when the debtors are in serious financial difficulty or legally or substantially bankrupt,
allowance for doubtful accounts is recognized using a method to estimate credit losses individually byconsidering the receivables as credit-impaired financial assets.
Irrespective of the above classification, when it is clear that a financial asset in its entirety or a portion
thereof cannot be recovered, such as a legal extinguishment of receivables, the carrying amount of thefinancial asset is directly amortized.
Information on allowance for doubtful accounts
The carrying amounts of financial assets subject to allowance for doubtful accounts were as follows:
These carrying amounts represent the maximum amount of exposure to credit risk.
(Millions of yen)
Trade receivables
Balance at March 31,
2023
Balance at March 31,
2024

Debtors that are notfacing serious
problems in their
management conditions

Debtors that are facing
serious problems inrepaying their debts

204,624

4,584

306

209,514

234,544

4,833

264

239,641- 68 -

Debtors that arebankrupt

Total

There was no significant change that had a material impact on allowance for doubtful accounts for “Trade
receivables” as of March 31, 2023 and 2024.
(Millions of yen)
Receivables other thantrade receivables
Balance at March 31,
2023
Balance at March 31,2024

No significant increasein credit risk

Significant increase in credit risk
Non-credit-impaired
financial assets

Total

Credit-impaired
financial assets

25,137

6,881

613

32,63140,4094,559

668

45,636

There was no significant change that had material impacts on allowance for doubtful accounts for“Receivables other than trade receivables” as of March 31, 2023 and 2024.
The changes in allowance for doubtful accounts related to above financial assets were as follows:(Millions of yen)
Receivables other than trade receivables
Trade receivables

Balance at April 1, 2022

No significant increasein credit risk

Significant increase in credit risk
Non-credit-impaired
financial assets

Credit-impaired
financial assets

5,246

52

6,853

604

Increase

427

–

103

–

Decrease(1,161)

(48)

(79)

(1)

391

(0)

–

10

4,903

4

6,877

613

Increase

667

0

–

2

Decrease

(821)

(4)

(2,320)

(2)

Other

592

1

–

55

5,341

1

4,557

668

Other
Balance at March 31,
2023

Balance at March 31,
2024(2) Liquidity risk
Liquidity risk is the risk that the Olympus Group may not be able to repay borrowings or settle otherfinancial liabilities on their due dates.
Borrowings, bonds and other financial liabilities held by the Olympus Group are exposed to liquidity risk.
Based on the report from each division, the finance division of the Olympus Group prepares and updates
its cash flow plans on a timely basis and keeps its liquidity in hand over a certain ratio of consolidated
revenue in order to manage liquidity risk.
Major financial liabilities by maturity date are as follows. Trade and other payables are not included in
the tables below as they are settled within one year and their contractual cash flows are nearly equal to thecarrying amount.

- 69 -

As of March 31, 2023
(Millions of yen)
Carrying amountContractual cash flows
Total

Within 1 year

Over 1 year

Non-derivative financial
liabilities
Bonds and borrowings

340,057

351,441

52,508298,933

Lease liabilities

57,16265,424

14,39851,026

Currency derivatives

1,067

1,067

1,027

40

Interest rate derivatives

149

149

72

77

Derivative financial liabilities

As of March 31, 2024
(Millions of yen)
Carrying amountContractual cash flows
Total

Within 1 year

Over 1 year

Non-derivative financial
liabilities
Bonds and borrowings

299,616

308,505

72,560235,945

Lease liabilities

60,943

69,95014,16055,790Currency derivatives

2,401

2,401

2,266

135

Interest rate derivatives

82

81

61

20

Derivative financial liabilities

The Olympus Group does not expect the cash flows included in the maturity analysis to occur muchearlier than anticipated or to differ significantly from the anticipated monetary amounts.
(3) Market risk
Market risk is the risk of fluctuations in fair value or future cash flows of financial instruments because ofchanges in market prices. Market risk includes foreign exchange risk which arises from changes inforeign exchange rates, interest rate risk which arises from changes in market interest rates and market
price fluctuation risk which arises from changes in market prices of listed shares.
(i)

Foreign exchange risk
The Olympus Group operates business activities worldwide. Accordingly, financial assets andliabilities arising from transactions denominated in currencies other than the functional currency are
exposed to foreign exchange rate fluctuation risk. The Olympus Group mainly uses foreignexchange forward contracts, currency options and currency swaps to reduce the foreign exchange
fluctuation risk.
(i)

Foreign exchange forward contracts, currency options and currency swaps
The details of foreign exchange forward contracts, currency options and currency swaps were as
follows:- 70 -

(Millions of yen)
2023
Contract amountForeign exchange forward contracts:

2024
Fair value

Contract amount

Fair value

165,085

1,559

112,492(1,480)U.S. dollar

59,912591

55,144(899)

Other currency

105,173968

57,348(581)

Currency options

8,257

(90)

9,901

(299)

U.S. dollar

8,257

(90)

5,402

(194)

Other currency

–

–

4,499

(105)

Currency swaps

97,2404,325

97,761

13,736

Receive other currencies / pay Euro

30,47516

21,505

11

Receive Euro / pay other currencies

–

–

551

(1)

Receive U.S. dollar / pay Japaneseyen

66,765

4,309

75,705

13,726

Total

270,582

5,794

220,154

11,957(ii) Sensitivity analysis of currency fluctuation risk
The following table illustrates the impact on profit before tax in the consolidated statement of
profit or loss from financial instruments held by the Olympus Group at the end of each fiscal year
if the Japanese yen appreciated by 1 Japanese yen against the U.S. dollar and the Euro. This
analysis assumes that all other variables are held constant.
(Millions of yen)
2023

2024

U.S. dollar

(22)

(42)

Euro

(57)

(59)

(ii) Interest rate risk
The Olympus Group’s exposure to interest rate risk mainly relates to debt such as borrowings andbonds. Because the amount of interest is affected by fluctuations in market interest rates, theOlympus Group is exposed to interest rate risk of fluctuations in future cash flows of interest.
Mainly to limit an increase in the amount of interest paid in the future due to a rise in interest rates,
the Olympus Group raises funds by procuring fixed rate long-term borrowings and issuing bonds atfixed interest rates. If funds are procured through long-term borrowings at a variable interest rate,
the Olympus Group endeavors to stabilize cash flows by entering into an interest rate swap contract
to receive a variable interest rate and pay a fixed interest rate with financial institutions and virtually
fixing the borrowing rate.
Interest rate sensitivity analysis
As for borrowings with variable interest rates held by the Olympus Group at the end of the fiscal
year, the amount of effects on profit before tax in the consolidated statement of profit or loss in theevent of a 1% increase in interest rates at the end of the fiscal year is as follows. This analysis
calculated the amount of effects by multiplying the balance of borrowings with variable interest
rates at the end of the fiscal year by 1%. The analysis excludes borrowings with variable interest
rates of which interest rates have been fixed by interest rate swap agreements.

- 71 -

(Millions of yen)
2023
Consolidated statement of profit or loss (profit before
tax)

2024
(499)

(500)

(iii) Market price risk
The Olympus Group holds listed shares for strategic investment purposes, including facilitating
business alliances. Market prices of listed shares may fluctuate depending on market economy
trends as the prices are determined based on market principles. For listed shares, the Olympus Groupregularly checks market prices and the financial status of issuers (business counterparts), while
reviewing holding positions continuously in consideration of relationships with businesscounterparts.
Sensitivity analysis of market price risk
With regard to listed shares held by the Olympus Group at the end of each fiscal year, the following
table shows the impact on other comprehensive income (before tax effect) in the consolidated
statement of comprehensive income that would result from 1% decline in market prices at the end ofeach fiscal year. The impact was calculated by multiplying listed shares at the end of each fiscal
year by 1% for this analysis.
(Millions of yen)
2023
Other comprehensive income (before tax effect)

2024
(5)

(5)

(4) Fair value(i)Fair value hierarchy
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 basedon observable market data
The Olympus Group recognizes transfers of financial instruments between the levels of the fairvalue hierarchy as if they occurred at the end of each fiscal year. There were no significant financial
instruments transferred between the levels for the fiscal years ended March 31, 2023 and 2024.

(ii) 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 3 and stated at the value obtained by using valuation
techniques such as the comparable company analysis method.

- 72 -

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, etc. 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, 2023
(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial assets measured at fair value throughprofit or loss
Derivative assets

–

6,860

–

6,860

–

–

937

937

470

–

6,431

6,901

Derivative liabilities

–

1,216

–

1,216

Contingent consideration

–

–

8,226

8,226

Equity securities and others
Financial assets measured at fair value throughother comprehensive income
Equity securities and others
Financial liabilities
Financial liabilities measured at fair value
through profit or loss

As of March 31, 2024
(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial assets measured at fair value throughprofit or loss
Derivative assets–

14,358–14,358

–

–

704

704

538

–

7,014

7,552

Derivative liabilities

–

2,483

–

2,483

Contingent consideration

–

–

7,119

7,119

Equity securities and others
Financial assets measured at fair value throughother comprehensive income
Equity securities and others
Financial liabilities
Financial liabilities measured at fair value
through profit or loss

- 73 -

The changes in financial assets categorized within level 3 were as follows:(Millions of yen)
2023
Balance at April 1

2024
3,895

7,368

(66)

(18)

Other comprehensive income
Purchases
Sales
Transfer to investments accounted for using the equity
method
Other

27
3,705
–

(106)
325
(405)

(203)

–

10

554

Balance at March 31

7,368

7,718

Gains and losses (Note)
Profit or loss

Note: Gains or losses recognized in profit or loss are included in “Finance income” or “Finance costs” in the consolidated statementof profit or loss. Gains or losses recognized in other comprehensive income are included in “Financial assets measured at fairvalue through other comprehensive income” in the consolidated statement of comprehensive income.
Total gains or losses recognized in profit or loss for the years ended March 31, 2023 and 2024 included a loss of ¥65 million
and a loss of ¥71 million on financial instruments held as of March 31, 2023 and 2024, respectively.

The changes in financial liabilities categorized within level 3 were as follows:(Millions of yen)
2023

2024

Balance at April 1

6,100

8,226

Business combinations, etc.

4,095

–

Settlement(715)(3,421)(1,758)

1,400

504

914

8,226

7,119

Change in fair value
Other
Balance at March 31(iii) Financial instruments measured at amortized cost
The methods for measuring the fair value of major financial instruments measured at amortized 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.

- 74 -

(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 wereas follows. Financial instruments whose carrying amounts approximate fair value are not included in
the following table.
(Millions of yen)
2023
Carrying amountFinancial assets
Lease receivables
Financial liabilities
Bonds
Borrowings

2024
Fair value

Carrying amount

Fair value

65,00364,982

86,23886,085

146,118
134,021141,280
134,287

145,250
94,372

139,324
94,225(iv) Equity instruments
Equity instruments such as shares held mainly for the purpose of maintaining or strengthening
business relationships with the investees are designated as financial assets measured at fair value
through other comprehensive income. The fair values of equity instruments by major issuer were as
follows:(Millions of yen)
Bond name2023

Delfi Diagnostics, Inc.

3,338

Noah Medical Corporation

2,003

OHARA INC.

470
(Millions of yen)
Bond name2024

Delfi Diagnostics, Inc.

3,785

Noah Medical Corporation

2,271

OHARA INC.

538

The fair value at the date of sale and cumulative gains or losses on sales of equity instruments soldduring the fiscal year based on Olympus Corporation’s policy for equity securities and others held
for strategic investment purposes were as follows:- 75 -

(Millions of yen)
2023

2024

Fair value at the date of sale

933

200

Cumulative gains or losses on sale335

0

The breakdown of dividends received recognized from equity instruments was as follows:(Millions of yen)
2023

2024

Equity instruments derecognized during the year28

0Equity instruments held at the end of year

10

11

38

11

Total

(5) Hedge accounting
The Olympus Group raises a portion of funds through borrowings with variable interest rates and bonds
in foreign currencies with fixed interest rates, and is exposed to interest rate risks and foreign exchangerisks for foreign currency transactions within that scope. The Olympus Group uses interest rate swaps that
virtually converts borrowings with variable interest rates into borrowings with fixed interest rates andinterest rate and currency swaps that virtually converts bonds in foreign currencies with fixed interest
rates into fixed rate bonds denominated in Japanese yen in order to hedge interest rate risk. The Groupapplies hedge accounting by designating the interest rate swaps as cash flow hedges.
For interest rate swaps, the notional amount, term (maturity) and underlying data for interest rate of thehedging instrument and the hedged item are to be matched, in principle. No ineffective portion wasrecognized as of March 31, 2023 and 2024.
For interest rate and currency swaps, the amount recognized in net gain or loss on the ineffective portionof the hedge for the fiscal year ended March 31, 2024, is not material.
A summary of interest rate swaps and interest rate and currency swaps designated as cash flow hedge was
as follows:
As of March 31, 2023
(Millions of yen)
Notional amountOver 1 year

Carrying amount (Note)
AssetsInterest rate

Liabilities

Interest rate
swaps

10,00010,000–149

Interest rateand currency
swaps

66,76566,7654,309–- 76 -

Variable rate receipt: 6-month
Japanese yen TIBOR
Fixed rate payment: 1.3815%
Fixed rate receipt: U.S. dollar
2.143%
Fixed rate payment: Japanese yen
0.6975%

As of March 31, 2024
(Millions of yen)
Notional amountOver 1 year

Carrying amount (Note)
AssetsInterest rate

Liabilities

Interest rate
swaps

10,00010,000–82

Interest rateand currency
swaps

75,70575,705

13,727–

Variable rate receipt: 6-month
Japanese yen TIBOR
Fixed rate payment: 1.3815%
Fixed rate receipt: U.S. dollar
2.143%
Fixed rate payment: Japanese yen
0.6975%

Note: The amount in the consolidated statement of financial position are recorded in “Other financial assets” or “Other financial
liabilities” of each current and non-current based on their maturity date.

The cash flow hedge reserve (before tax effect) regarding the above table was as follows:(Millions of yen)
2023
Interest rate swaps
Interest rate and currency swaps

2024
(149)
(5,300)(82)(5,622)

Cash flow hedges recognized in the consolidated statement of comprehensive income and othercomprehensive income (before tax effect) were as follows:
Fiscal year ended March 31, 2023
(Millions of yen)Amount of reclassification
adjustment from cash flow hedge
to profit or loss
Note:

Changes in the fair value
recognized in othercomprehensive income
Interest rate swaps
Interest rate and currency swaps

56

80

3,627

(5,607)

Fiscal year ended March 31, 2024
Changes in the fair value
recognized in othercomprehensive income(Millions of yen)Amount of reclassification
adjustment from cash flow hedge
to profit or loss
Note:

Interest rate swaps

(11)

78

Interest rate and currency swaps

8,680(9,002)

Note: The amounts included in the consolidated statement of profit or loss are recorded in “Finance income” or “Finance costs.”(6) Transfer of financial instruments
Transferred financial assets that are not derecognized in their entirety
The Olympus Group transfers a part of trade receivables to a third party in order to diversify fundraisingchannels and conduct stable fund procurement. The third party has recourse only to the transferred assets
upon the debtors’ default and cannot claim other assets of the Olympus Group. While the Olympus Group
does not bear bad debt risk on a certain portion of the transferred receivables due to a contract with thethird party, the full amount has been recognized in the consolidated statement of financial position
because the financial assets in their entirety do not qualify for derecognition. The proceeds which arisingon the transfer of the assets have been recorded as the associated liabilities and are settled when a- 77 -

payment is made for the transferred assets. The Olympus Group cannot use the transferred assets until the
payment is made.
The carrying amounts of transferred assets and the associated liabilities when the Olympus Group
continues to recognize all of the transferred assets as of March 31, 2023 and 2024 are as follows. They arerecognized in “Trade and other receivables” and “Other financial liabilities,” respectively, in the
consolidated statement of financial position.
(Millions of yen)
2023

2024

Transferred financial assets
Related liabilities
Net position of transferred financial assets

4,206
4,206

1,248
1,248

–

–

Note: The fair values are equivalent to the carrying amounts in the above table.

36. Leases(1) Lessor
The Olympus Group leases endoscopes and other equipment under finance leases. It also leases
endoscopes and other equipment, and property owned by Olympus Corporation as operating leases.
The business conditions of the customers, equipment usage, etc. are monitored regularly in order tomanage the risks for the assets.
The breakdown of revenue under finance leases from continuing operations was as follows:(Millions of yen)
2023

2024

Lease income (loss)

14,717

19,152

Interest income

2,931

4,372

The breakdown of future lease payments receivable under finance leases was as follows:- 78 -

(Millions of yen)
2023

2024

Undiscounted lease payments to be received
Within 1 year

29,95239,375More than 1 year, but within 2 years

17,43323,657More than 2 years, but within 3 years

11,091

14,104More than 3 years, but within 4 years

4,540

6,133

More than 4 years, but within 5 years

1,651

2,569

524

420

65,191

86,258Unguaranteed residual value

5,148

8,273

Unearned finance income(5,336)(8,293)

Net investment in the lease

65,00386,238More than 5 years
Total

The breakdown of revenue under operating leases from continuing operations was as follows:(Millions of yen)
2023

2024

Lease income

31,21030,844

Variable lease payments (Note)

13,484

15,402

Note:

Income that is not determined by an index or a rate.

The breakdown of future lease payments receivable under operating leases from continuing operations was
as follows:(Millions of yen)
2023

2024

Within 1 year

17,883

17,348More than 1 year, but within 2 years

11,553

10,306More than 2 years, but within 3 years

5,556

4,732

More than 3 years, but within 4 years

2,086

2,228

More than 4 years, but within 5 years

866

1,223

More than 5 years

460

526

38,40436,363Total(2) Lessee
The Olympus Group rents properties and other equipment as lessee.
Certain of the lease transactions have renew/purchase options or escalation clauses, but there are no
significant restrictions on dividends, additional borrowings and additional leases provided by the lease
contracts.
In addition, some lease contracts contain extension options and termination options.
There were no leases that have not yet commenced among lease contracts concluded by the Olympus
Group as of March 31, 2023 and 2024.
- 79 -

The book value of right-of-use assets by type of underlying asset and the increase in right-of-use assets
are described in Note “13. Property, Plant and Equipment.”
The total amount of cash outflows related to leases were ¥24,114 million and ¥22,863 million for the
fiscal years ended March 31, 2023 and 2024, respectively.
The breakdown of lease-related income and expenses for lessee of continuing operations were as follows:(Millions of yen)
2023
Revenue from sublease of right-of-use assets

2024
12

7

326

188

Buildings and structures

8,856

9,012

Machinery and vehicles

2,857

3,054

868

887

1,569

1,850

Expenses under short-term leases

628

732

Expenses under leases of low-value asset

955

1,078

Depreciation of right-of-use assets by underlying asset
class
Land

Tools, furniture and fixtures
Interest expense under lease obligations

Note: The balance of lease liabilities by date is described in Note “35. Financial Instruments.”- 80 -

37. Income Taxes(1) Deferred tax assets and liabilities
The breakdown of major deferred tax assets and liabilities by cause was as follows:(Millions of yen)
2023

2024

Deferred tax assets
Inventories

6,974

7,387

Prepaid expenses

9,822

11,315

Accrued bonuses

7,096

7,219

Accrued expenses
Unrealized intercompany profits
Property, plant and equipment

4,941
15,4409,931

5,776
19,385
12,413

Intangible assets

2,665

3,077

Interest rate swaps

46

25

Deferred gains or losses on hedges

1,623

1,721

Retirement benefit liability

2,084

1,221

Loss carryforwards

5,379

5,783

Lease liabilities

15,08915,705

Provision for product warranties

8,670

12,284109,268

–

2,009

7,348

201,037

111,159(6,957)(8,874)

(176)

(146)

Retirement benefit asset(6,186)(7,860)Fair value differences on acquisition(9,961)(3,372)

Capitalized development costs(13,578)(9,452)Retained profit of overseas subsidiaries(2,741)(2,036)

Right-of-use assets(13,901)(14,283)

Other(3,292)(4,801)(56,792)(50,824)

144,245

60,335Investments in subsidiaries
Other
Total
Deferred tax liabilities
Property, plant and equipment
Financial assets measured at fair value through othercomprehensive income

Total
Net deferred tax assets and liabilities(Amendments to IAS 12 “Income Taxes”)
The Olympus Group has applied “Deferred Tax related to Assets and Liabilities arising from a Single
Transaction” (Amendments to IAS 12 “Income Taxes”) effective for the fiscal year ended March 31,
2024. The impact of the application of this standard on the Olympus Group’s consolidated financial
statements is immaterial.
The Olympus Group has also applied “International Tax Reform — Pillar Two Model Rules”(Amendments to IAS 12 “Income Taxes”) effective for the fiscal year ended March 31, 2024. The
amendment clarifies that IAS 12 applies to income taxes arising from tax laws enacted or substantively
enacted to implement the BEPS’s Pillar Two GloBE Rules (global minimum tax) by OECD. However,this standard makes a temporary exception that requires an entity not to recognize or disclose information
about deferred tax assets and liabilities related to the income taxes arising from the global minimum tax- 81 -

rules. The Olympus Group has applied the exception defined in IAS 12 and does not recognize or disclose
information about deferred tax assets and liabilities related to the income taxes arising from the global
minimum tax rules.
(The global minimum tax system)
The Pillar Two rule has been implemented in some of jurisdictions where the Olympus Group isoperating, and it shall be applied to the Olympus Group for the fiscal year beginning on or after April 1,
2024. The Olympus Corporation has assessed potential exposures of Pillar Two to its income taxes basedon the recent tax returns, country-by-country reports and financial statements of constituent entities
subject to the system. The result shows that the tax burden in no or only nominal tax jurisdictions wheresome subsidiaries are located will be taxed up to the minimum rate of 15%. However, the Olympus
Corporation determines that its impact on the Olympus Group’s consolidated financial statements isimmaterial.
Loss carryforwards, deductible temporary differences and tax credits carried forward for which deferred
tax assets have not been recognized were as follows. The tax base is presented.
(Millions of yen)
2023

2024

Loss carryforwards

3,410

4,671

Deductible temporary differences

23,166

16,903800

1,112

27,376

22,686

Tax credits carried forward
Total

Loss carryforwards for which deferred tax assets have not been recognized and expires as follows:(Millions of yen)
2023
Within 4th year2024–

5th year and thereafter
Total

3,410

4,671

3,410

4,671

Olympus Corporation does not recognize deferred tax liabilities for the temporary differences associatedwith undistributed profits of subsidiaries when Olympus Corporation is able to control the timing of thereversal of the temporary difference and it is probable that the temporary difference will not reverse in theforeseeable future. Total temporary differences associated with the undistributed profits of subsidiaries
which have not been recognized as deferred tax liabilities (income base) were ¥397,604 million and¥310,790 million as of March 31, 2023 and 2024, respectively.
(2) Income tax expenses
The breakdown of income tax expenses was as follows:(Millions of yen)
2023

2024

Current tax expenses (Note 1)

35,66235,373

Deferred tax expenses (Notes 2, 3, 4)

8,642(26,492)

44,304

8,881

Total of income tax expenses

Notes: 1. The current tax expense includes tax losses which were previously not recorded, tax credits or benefits resulting from
temporary differences for prior periods. Consequently, the current tax expense for the fiscal years ended March 31, 2023
and 2024 decreased by ¥1,344 million and ¥2,423 million, respectively.

- 82 -

In addition, the current tax expense for the fiscal year ended March 31, 2024 includes the corporation tax for the previous
fiscal year of ¥(69) million.
2. The deferred tax expense includes tax losses which were previously not recorded, tax credits or benefits resulting
from temporary differences for prior periods. Consequently, the deferred tax expense increased by ¥69 million for
the fiscal year ended March 31, 2023 and decreased by ¥552 million for the fiscal year ended March 31, 2024,
respectively.
3. The deferred tax expense includes devaluation of deferred tax assets and the reversal of devaluation of deferred tax
assets which was previously recorded (assessment of recoverability of deferred tax assets). Consequently, thedeferred tax expense increased by ¥2,485 million for the fiscal year ended March 31, 2023 and decreased by ¥508
million for the fiscal year ended March 31, 2024, respectively.
4. The deferred tax expense decreased by ¥386 million for the fiscal year ended March 31, 2023 and increased by¥867 million for the fiscal year ended March 31, 2024 due to the effect of changes in tax rates in Japan andoverseas.

(3) Income taxes recognized in other comprehensive income
Income taxes recognized in other comprehensive income are presented in Note “33. Other
Comprehensive Income.”(4) Reconciliation of effective tax rate
Reconciliation of the effective statutory tax rate and the average actual tax rate for the fiscal years ended
March 31, 2023 and 2024 is as follows.
Olympus Corporation’s income taxes mainly include corporation tax, inhabitant tax and enterprise tax.
The effective statutory tax rates calculated based on these taxes were 30.6% and 30.6% for the fiscal
years ended March 31, 2023 and 2024, respectively. Overseas subsidiaries are subject to income taxes of
the countries in which they operate.
2023
Effective statutory tax rate

2024
30.6%

30.6%

Non-deductible expense, such as entertainment
expenses

2.3

Non-taxable income, such as dividend income

(0.4)

(4.0)

Tax credit for experimental research cost and others

(1.1)

(8.9)

Different tax rates applied to subsidiaries

(6.7)

(1.0)

Subsidiaries reserve

1.2

(4.4)

Change in unrecognized deferred tax assets andliabilities
Change in deferred tax assets at the end of fiscal year
due to changes in tax rates

(2.7)
(0.2)

8.7

(10.7)
2.4

Effects of organizational restructuring

(1.4)

11.8

Other

2.7

0.3

24.3%

24.8%

Average actual tax rate

38. Major Subsidiaries(1) Structured entities
Major subsidiaries as of March 31, 2024 were as follows.

- 83 -

Main business

Voting rights held by Olympus
Corporation(%)

Olympus Medical Systems
Corp.
Hachioji-shi, Tokyo(Note 2)

Manufacturing Endoscopic Solutions Business products
and Therapeutic Solutions Business products

100

Aizu Olympus Co., Ltd.
Aizu-Wakamatsu-shi,(Note 2) Fukushima

Manufacturing Endoscopic Solutions Business products

100

Aomori Olympus Co., Ltd. Kuroishi-shi, Aomori

Manufacturing Therapeutic Solutions Business products

100

Tatsuno-machi,
Nagano Olympus Co., Ltd.
Kamiina-gun, Nagano

Manufacturing Endoscopic Solutions Business products

100

Nishigo-mura,Nishishirakawa-gun,
Fukushima

Manufacturing Endoscopic Solutions Business products

100

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100

Shibuya-ku, Tokyo

Research and development, manufacturing and sales ofbiomaterials products and regenerative medicine

95.7
[100]

TmediX Corporation
Shinjuku-ku, Tokyo(Note 1)

Lease of products of the Endoscopic Solutions Business

100
[100]

Olympus-Supportmate
Corp.

Administration services for domestic subsidiaries andaffiliates

100

Olympus Corporation ofPennsylvania,
the Americas
U.S.A.
(Note 2)

Holding company of corporate planning and financial
support to affiliated companies in Americas region

100

Olympus America Inc.
Pennsylvania,(Notes 1, 3) U.S.A.

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

Olympus Latin America,
Florida,Inc.
U.S.A.
(Note 1)

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

Gyrus ACMI, Inc.
Massachusetts,(Notes 1, 2) U.S.A.

Manufacturing Therapeutic Solutions Business products

100
[100]

Manufacturing Therapeutic Solutions Business products

100
[100]

Olympus Innovation
Ventures, LLC
Massachusetts, U.S.A.
(Note 1)

Investment in Endoscopic Solutions Business andTherapeutic Solutions Business

100
[100]

Olympus Europa Holding
SE

Hamburg,
Germany

Holding company of corporate planning to affiliatedcompanies in Europe region

100

Olympus Europa SE & Co.
Hamburg,
KG
Germany

Holding company and sales of Endoscopic Solutions
Business products and Therapeutic Solutions Businessproducts

100
[100]

Olympus Deutschland
Hamburg,GmbH
Germany(Note 1)

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

Olympus France S.A.S.
Rungis Cedex,(Note 1) France

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

Olympus Winter & Ibe
Hamburg,GmbH
Germany(Note 1)

Manufacturing Endoscopic Solutions Business products
and Therapeutic Solutions Business products

100
[100]

KeyMed (Medical &Essex,
Industrial Equipment) Ltd.
U.K.
(Note 1)

Manufacturing and sales of Endoscopic Solutions
Business products

100
[100]

Quest Photonic Devices
North Holland
B.V.
The Netherlands(Note 1)Development of Endoscopic Solutions Businessproducts

100
[100]

Arc Medical DesignWest Yorkshire,
LimitedU.K.
(Note 1)

Manufacturing Therapeutic Solutions Business products

100
[100]

Sales and manufacturing of orthopedic equipment

100
[100]

Company nameLocation(Consolidated subsidiaries)

Shirakawa Olympus Co.,Ltd.

Olympus Marketing, Inc.
Shinjuku-ku, Tokyo(Notes 2, 3)
Olympus Terumo
Biomaterials Corp.

Gyrus ACMI LP(Note 1)

Hachioji-shi, Tokyo

Minnesota,(Note 1) U.S.A.

(Notes 1, 2)

FH ORTHO SAS

Heimsbrunn(Note 1) France- 84 -

Company nameLocation

Main business

Voting rights held by Olympus
Corporation(%)

Olympus Global Treasury
Essex,
Services Limited
U.K.
(Note 2)Fund management of the whole group100

Odin Medical Ltd.

London, U.K.

Development of Endoscopic Solutions Businessproducts

100

Or-Akiva, Israel

Development and manufacturing of Therapeutic
Solutions Business products

100
[100]

Olympus Corporation ofAsia Pacific Limited
Hong Kong(Note 2)

Holding company of corporate planning to affiliatedcompanies in Asia region

100

Olympus Hong Kong andChina Limited
Hong Kong(Note 1)

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

Olympus (China) Co., Ltd.
Beijing, P.R.C.
(Note 1)

Holding company of corporate planning to affiliatedcompanies in China

100
[100]

Olympus (Beijing) Sales &Service Co., Ltd.
Beijing, P.R.C.
(Notes 1, 3)

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

Olympus Trading(Shanghai) Limited
Shanghai, P.R.C.
(Notes 1, 2)

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

Olympus Korea Co., Ltd.

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100

Olympus Singapore Pte.
Ltd.
Singapore(Note 1)

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

Olympus Vietnam Co., Ltd. Vietnam

Manufacturing Therapeutic Solutions Business products

100

Olympus Australia Pty Ltd. Victoria,(Note 1) Australia

Sales of Endoscopic Solutions Business products andTherapeutic Solutions Business products

100
[100]

–

–

Medi-Tate Ltd.

(Note 1)53 others

Seoul, Republic of Korea–(Equity method affiliatedcompanies)
Sony Olympus Medical
Solutions Inc.
2 others

Notes:

Hachioji-shi, Tokyo

Development of Endoscopic Solutions Businessproducts

–

–

49
–

1.

Figures disclosed in parentheses in the “Voting rights held by Olympus Corporation” column represent voting rights
held indirectly by Olympus Corporation.
2. The company falls under the category of “specified subsidiary.”
3. Olympus Marketing, Inc., Olympus America Inc., and Olympus (Beijing) Sales & Service Co., Ltd. account for morethan one-tenth of consolidated revenue.
4. No company has filed a securities registration statement or securities report.

(2) Significant subsidiaries having non-controlling interests
During the fiscal years ended March 31, 2023 and 2024, there was no individually significant subsidiaryhaving non-controlling interests.

- 85 -

39. Related-party Transactions(1) Related-party transactions
Fiscal year ended March 31, 2023
Name

Officer

Yasuo
TakeuchiOwnership(owned) ratioof votingrights, etc.
(%)
Ownership
Direct 0.0

Relationship with therelevant party

Description oftransaction

Director, Representative
Executive Officer,
President and CEO

Contribution in kindof monetarycompensation
claims (Note)

Amount oftransaction(Millions ofyen)Account

Balance at
end of year
(Millions of
yen)

27

–

–

Amount oftransaction(Millions ofyen)Account

Balance at
end of year
(Millions of
yen)

303

–

–

241

–

–

230

–

–

91

–

–

23

–

–

16

–

–

14

–

–

13

–

–

11

–

–

11

–

–

Note: Contribution in kind of monetary compensation claims is associated with the PSU system.
Fiscal year ended March 31, 2024
Name

Ownership(owned) ratioof votingrights, etc.
(%)

Relationship with therelevant party

Description oftransaction
Contribution in kindof monetarycompensation
claims (Note 3)
Contribution in kindof monetarycompensation
claims (Note 3)
Contribution in kindof monetarycompensation
claims (Note 3)
Contribution in kindof monetarycompensation
claims (Note 3)
Contribution in kindof monetarycompensation
claims (Note 3)
Contribution in kindof monetarycompensation
claims (Note 3)
Contribution in kindof monetarycompensation
claims (Note 3)
Contribution in kindof monetarycompensation
claims (Note 3)
Contribution in kindof monetarycompensation
claims (Note 4)
Contribution in kindof monetarycompensation
claims (Note 4)

Officer

Yasuo
TakeuchiOwnership
Direct 0.0

OfficerJose
Ignacio
Abia
BuenacheDirector, Representative
Executive Officer,
Executive Chairperson
and ESG Officer

Ownership
Direct 0.0

Executive Officer and
CSO(Note 1)

Officer

StefanKaufmann

Ownership
Direct 0.0

Director, Representative
Executive Officer,
President and CEO

Officer

ChikashiTakedaOwnership
Direct 0.0

Executive Officer and
CFO(Note 1)

Officer

TetsuoKobayashi

Ownership
Direct 0.0

Executive Officer and
CMSO

Officer

Andre
Heribert
RogganOwnership
Direct 0.0

Executive Officer and
CTO

Officer

Toshihiko
Okubo

Ownership
Direct 0.0

Director

Officer

ShigetoOhtsukiOwnership
Direct 0.0

Executive Officer and
CHRO

Officer

Nobuyuki
Koga

Ownership
Direct 0.0

Director(Note 2)

Officer

TetsuoIwamuraOwnership
Direct 0.0

Outside Director(Note 2)

Notes: 1. They resigned from the board of directors on March 31, 2024, and the above table shows transactions during the fiscal
year under review related to their terms of office.

- 86 -

2. They resigned from the board of directors on June 27, 2023, and the above table shows transactions during the fiscal
year under review related to their terms of office.
3. It is due to contribution in kind of monetary compensation claims accompanying PSU system and RSU system.
4. It is due to contribution in kind of monetary compensation claims accompanying RSU system.

(2) Remuneration for management executives(Millions of yen)
2023
Remuneration and bonuses
Stock compensation
Total

2024
1,665
743

2,953
1,469

2,408

4,422

40. Business Combinations
Fiscal year ended March 31, 2023
(Acquisition of Odin Medical Ltd.)(1) Outline of business combination(i)Name and description of acquired business
Name of the acquired business: Odin Medical Ltd. (hereinafter “Odin”)
Description of business: Development of cloud AI-enabled applications for endoscopy(ii) Primary reason for business combination
Odin, which is affiliated with the Wellcome / EPSRC Centre for Interventional and Surgical
Sciences (WEISS) at University College London (UCL), was founded by renowned clinicians andartificial intelligence experts to develop next-generation cloud AI-enabled applications forendoscopy.
By incorporating Odin’s solutions, which utilize surgical and clinical data collected and analyzed inreal time, Olympus Corporation aims not only to reduce the administrative burden on health care
workers and support decision-making in clinical settings, but also to support health care workers toprovide better medical care to patients.
(iii) Acquired ratio of holding capital with voting rights
100%(iv) Acquisition date
December 19, 2022(v) Acquisition method to govern the acquired company
Cash consideration for the acquisition of shares(2) Acquisition-related expense
The acquisition-related expense of ¥199 million has been booked in “Selling, general and administrative
expenses.”- 87 -

(3) Fair value of consideration paid, assets acquired, and liabilities assumed as of the acquisition date(Millions of yen)AmountFair value of consideration paid
Cash

3,982

Contingent consideration

4,095

Total

8,077

Fair value of assets acquired and liabilities
assumedCash and cash equivalents

148

Other current assets

1

Property, plant and equipment

3

Intangible assets

3,955

Trade and other payables(28)

Other current liabilities(99)

Deferred tax liabilities(986)

Other non-current liabilities(74)

Fair value of assets acquired and liabilities
assumed, net

2,920

Goodwill

5,157

Total

8,077

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 fiscal year ended March 31, 2024, and the values of the assets and liabilities on the acquisition datehave been revised from the initial provisional amounts.
The adjustments made comprise an increase in intangible assets of ¥3,943 million and an increase indeferred tax liabilities of ¥986 million. As a result, goodwill decreased by ¥2,894 million. The balance ofintangible assets of ¥3,955 million is mostly comprised of ¥3,170 million in research and development
assets related to products of Odin, and ¥774 million in intangible assets based on the contract, which aremeasured based on future sales growth rate, diminishing value rate, discount rate and other assumptions.
The estimated useful lives of research and development assets are 15 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.
(4) Contingent consideration
The contingent consideration is a milestone payment subject to the obtaining of approval for development
made by Odin, and the payment is calculated by taking into consideration the possibility of obtaining theapproval for the development and time value of money. The payment limit is GBP33,000 thousand.
In terms of hierarchical level, the fair value of the contingent consideration is level 3. The amount ofchange in fair value of the contingent consideration includes the recording of the part based on changes in- 88 -

the time value of money as “Finance costs” and the part based on changes other than the time value ofmoney as “Other income” or “Other expenses.”(5) 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 the consolidated statement of profit or loss due to suchinformation is not material.
Furthermore, the independent auditor has not audited profit or loss information under the assumption thatthe said business combination was conducted at the beginning of the fiscal year.
(Contingent consideration of Medi-Tate Ltd.)With regard to the contingent consideration recognized from the acquisition of Medi-Tate Ltd. carried out
in the fiscal year ended March 31, 2022, due to the delay from the initial plan in obtaining approval aspart of development activities, we have lowered the fair value from the balance of ¥2,699 million at the
beginning of the fiscal year to ¥2,037 million in the fiscal year ended March 31, 2023. Of the ¥662
million difference, the amount of impact of changes in the time value of money of ¥460 million (Note 1)
was recorded as “Finance costs” in the consolidated statement of profit or loss, the amount of impact of¥1,381 million due to the review of the fair value itself (Note 2) was recorded as “Other income” in the
consolidated statement of profit or loss, and the amount of impact of exchange rate fluctuations of ¥259
million was recorded as “Exchange differences on translation of foreign operations” in the consolidated
statement of comprehensive income, respectively.
Notes: 1. The amount of contingent consideration is presented at the current value calculated from discounting in
the period from the day of payment to the relevant fiscal year-end. Therefore, in principle, the amountincreases and “Finance costs” occur as the day of payment approaches.
2. The impact originates from the fact that the amount itself has been reviewed due to the fact that
achieving the conditions for the milestone has become difficult as a result of the delay from theinitial plan.
Fiscal year ended March 31, 2024
(Revised provisional amounts)
For the following business combination that occurred in the fiscal year ended March 31, 2023, provisionalamounts have been revised during the fiscal year ended March 31, 2024. As a result, we haveretrospectively revised the figures at the end of the fiscal year ended March 31, 2023 in the consolidated
statement of financial position.
(Acquisition of Odin Medical Ltd.)
Odin Medical Ltd. became a consolidated subsidiary of Olympus Corporation on December 19, 2022, due
to the acquisition of shares for cash consideration.
In the fiscal year ended March 31, 2024, the fair value of some assets acquired and liabilities assumed has
been revised with respect to the measurement of the fair value of assets acquired and liabilities assumed
as of the acquisition date in said business combination. Regarding said business combination, in the fiscal
year ended March 31, 2024, initial measurement of assets acquired, liabilities assumed and goodwill has
been finalized.

- 89 -

Provisional fair value
as of March 31, 2023

(Millions of yen)

Subsequent
revision

Revised fair value

Fair value of consideration paid
Cash

3,982

–

3,982

Contingent consideration

4,095

–

4,095

8,077

–

8,077

148

–

148

Other current assets

1

–

1

Property, plant and equipment

3

–

3

Intangible assets

2,434

1,521

3,955

Trade and other payables

(28)

–

(28)

Other current liabilities

(99)

–

(99)

Deferred tax liabilities

(606)

(380)

(986)

Other non-current liabilities

(74)

–

(74)

Fair value of assets acquired and liabilities
assumed, net

1,779

1,141

2,920

Goodwill

6,298(1,141)

5,157

Total

8,077

–

8,077

Total
Fair value of assets acquired and liabilities
assumedCash and cash equivalents

Due to these revisions, there were increases in intangible assets and deferred tax liabilities of ¥1,574
million and ¥393 million, respectively, and a decrease in goodwill of ¥1,181 million in the consolidated
statement of financial position as of March 31, 2023.

41. Discontinued Operation(1) Outline of discontinued operation
On August 29, 2022, Olympus Corporation concluded a share transfer agreement related to the transfer of
Scientific Solutions Business of the Olympus Group with K.K. BCJ-66, a special purpose company
indirectly owned by funds advised by Bain Capital. Due to this, profit (loss) from the Scientific Solutions
Business has been classified as profit (loss) from discontinued operation from the second quarter ended
September 30, 2022. The transfer of the shares of Evident, which operates the Scientific Solutions
Business, was completed on April 3, 2023. Details are described in Note “34. Cash Flow Information.”- 90 -

(2) Profit (loss) of discontinued operation
Profit (loss) of discontinued operations is as follows:(Millions of yen)
2023

2024

Revenue

135,421–

Cost of sales

60,045–Gross profit

75,376–

Selling, general and administrative expenses

57,361

244

Other income (Note 1)

215

349,151

Other expenses (Note 2)

11,195631

Operating profit

7,035

348,276

Finance income

551–

Finance costs

173–

Profit before tax

7,413

348,276

Income taxes (Note 3)

1,790

132,320

Profit from discontinued operation

5,623

215,956

Notes: 1. Other income includes ¥349,037 million in the fiscal year ended March 31, 2024 for the gain on the transfer of Scientific
Solutions Business.
2. Other expenses include ¥11,073 million and ¥161 million in the fiscal year ended March 31, 2023 and the fiscal
year ended March 31, 2024, respectively, related to the spin-off of the Scientific Solutions Business and thestrengthening of its management systems.
3. Income taxes in the fiscal year ended March 31, 2024 include ¥120,313 million of tax expenses related to thetransfer of Scientific Solutions Business.

(3) Cash flows of discontinued operation
Cash flows of discontinued operation are as follows:(Millions of yen)
Cash flows of discontinued operation

2023

2024

Net cash used in operating activities(13,151)(57,569)

Net cash provided by (used in) investing activities(11,725)

431,091

Net cash used in financing activities(2,891)–

Note: Net cash provided by (used in) investing activities in the fiscal year ended March 31, 2024 includes proceeds from thetransfer of the Scientific Solutions Business of ¥379,091 million and collection of loans receivable from Evident Corporationof ¥52,000 million.

- 91 -

42. Contingent Liabilities
The Olympus Group has the following guarantees:(Millions of yen)
2023
Employees (mortgages)
Total

2024
0

–

0

–

(Guarantee obligations of employees’ mortgages)
The maximum term of the guarantee obligations extends to 2023. As a guarantor, the Olympus Group is liable
for any defaults of the mortgages in scope of the obligations and has an obligation to settle the mortgages onbehalf of the employees. Those obligations are collateralized by the homes of the employees.

43. Subsequent Events(Share repurchase and cancellation of treasury shares)
At the meeting of the Board of Directors held on November 9, 2023, Olympus Corporation resolved to cancel
treasury shares as provided for in Article 178 of the Companies Act, and cancelled the treasury shares on
April 30, 2024.
(1) Details of cancellation
1.
2.
3.
4.

Class of shares:
Number of shares to becancelled:
Date of cancellation:
Total number of issued shares
after cancellation:

Common stock of Olympus Corporation
37,446,500 shares(3.08% of total number of issued shares before the cancellation)
April 30, 2024
1,177,700,200 shares

At the meeting of the Board of Directors held on May 10, 2024, Olympus Corporation resolved items related
to the repurchase of its own shares as provided for in Article 459 Section 1 of the Companies Act and Article
32 of Olympus Corporation’s Articles of Incorporation, as well as the cancellation of treasury shares asprovided for in Article 178 of the Companies Act. Olympus Corporation carried out the repurchase of its own
shares as follows:(1) Reasons for the share repurchase and cancellation of treasury shares
To strengthen shareholder returns and to improve capital efficiency(2) Details of items related to the repurchase
1.

Class of shares:

2.

Total number of shares to be
repurchased:

4.

Total amount of shares to be
repurchased:
Repurchase period:

5.

Repurchase method:

3.

Common stock of Olympus Corporation
60,000,000 shares (maximum)(5.15% of total number of issued shares (excluding treasury
shares))¥100,000 million (maximum)
May 13, 2024 to December 31, 2024
Market purchase on the Tokyo Stock Exchange based on adiscretionary trading contract- 92 -

(3) Treasury shares repurchased based on the above resolution by the Board of Directors
1.

Total number of shares repurchased:

1,656,800 shares

2.

Total amount of shares repurchased:¥4,317 million

3.

Repurchase period:

May 13, 2024 to July 31, 2024 (based on delivery date)(4) Details of cancellation
1.
2.
3.

Class of shares:
Number of shares to becancelled:
Date of cancellation:

Common stock of Olympus Corporation
All of the shares to be repurchased as stated in (2) above
January 31, 2025

(Transfer of orthopedic surgery business)
On May 25, 2024, Olympus Corporation entered into a put option agreement with PTCJ-6O Holdings Inc.
and PTCJ-6F Holdings Inc. (special purpose companies established by Polaris Capital Group Co., Ltd.,
hereinafter collectively, the “Polaris Capital Group”), to transfer (hereinafter, the “Transfer”) Olympus
Terumo Biomaterials Corporation and FH Ortho SAS (hereinafter, the “FHO Group”), Olympus’s Orthopedic
Surgery Business Unit. The transfer of the businesses in accordance with this agreement was completed on
July 12, 2024.
(1) Reasons for transfer
Olympus Corporation is committed to strengthening its position as a global medtech company andrealizing Our Purpose of “Making people’s lives healthier, safer and more fulfilling.” On May 12, 2023,
Olympus Corporation announced its company strategy, which is based on the three priorities of patient
safety and sustainability, innovation for growth, and productivity (hereinafter, the “Corporate Strategy”).
Based on this Corporate Strategy, Olympus Corporation is focusing on disease areas where it can makethe greatest contribution and increase its presence in important and long-term growth markets as a leading
company. These include the fields of gastroenterology, urology, and respiratory. To improve its focus on
these key areas, Olympus Corporation determined that the transfer of Olympus Terumo Biomaterials
Corporation and the FHO Group to Polaris Capital Group is the best way to improve the corporate valueof the Olympus Group and to achieve organic and sustainable growth of the orthopedic surgery business.
(2) Name of counterparty to the share transfer transaction
Polaris Capital Group(3) Date of the share transfer
July 12, 2024
(4) Name and description of the business to be transferred
Name:
Description of business:

Orthopedic surgery business (Olympus Terumo Biomaterials Corporation
and FHO Group)
Developing, manufacturing, and selling of biomedical materials, such assynthetic bone filler, and orthopedic equipment(5) Transfer priceTransfer price based on the agreement is ¥3,698 million. Under the agreement, the price has not been
finalized and is subject to price adjustment.
Moreover, gain or loss on transfer is currently being calculated.

- 93 -(Disposal of treasury shares)
Olympus Corporation conducted two rounds of disposal of treasury shares (hereinafter “this disposal oftreasury shares”) based on its restricted stock unit system (hereinafter “RSU system”) and performance shareunit system (hereinafter “PSU system”) as follows.
Olympus Corporation introduced the PSU system in the fiscal year ended March 31, 2018 as stockcompensation to directors (excluding outside directors) and corporate officers. Then, as part of the change in
officer system in accordance with its transition into a company with a Nominating Committee, etc. in June
2019, Olympus Corporation introduced the PSU system as stock compensation to executive officers, and also
further worked on reviewing its compensation systems under a basic concept to reward the responsibilities of
directors (including outside directors) and executive officers with suitable and appropriate treatments throughencouraging strong awareness “to maximize the corporate value and to meet expectations of various
stakeholders.” As part of this initiative, Olympus Corporation introduced the RSU system in the fiscal year
ended March 31, 2021 as stock compensation to directors (including outside directors) and executive officers.
Under the same basic concept, Olympus Corporation introduced the PSU system and the RSU system for
employees in senior management positions (hereinafter the “Group employees” of Olympus Corporation’s
subsidiaries in the fiscal year ended March 31, 2023.
This disposal of treasury shares shall be conducted as stock compensation to the directors and executive
officers who are the allottees (hereinafter “allottees”) 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. In addition, those who were executive officers at the time of the granting of stockcompensation and who became employees of Olympus Corporation’s subsidiaries after their retirement shallalso be allottees.

- 94 -

Outline of the disposal of treasury shares（disposal decided on June 26, 2024）(1) Date of disposal

July 24, 2024

(2) Class and number of shares for
502,745 shares of common stock of Olympus Corporation
disposal(3) Disposal price¥2,579 per share(4) Total amount of disposal value ¥1,297 million(i) RSU granted for the fiscal year ended March 31, 2021
One non-executive director (retiree)1,541 shares(ii) RSU granted for the fiscal year ended March 31, 2022 (hereinafter“FY2022-RSU”)
One non-executive director (retiree) and three
executive officers (including retirees)

73,815 shares(iii) Transformational FY22-RSU granted for the fiscal year ended March
31, 2022(5) Disposal recipients, the number One executive officerof such recipients, and the(iv) RSU granted for the fiscal year ended March 31, 2023
number of shares to be
Two non-executive directors (retirees) and fivedisposed of
executive officers (including retirees)

6,081 shares

61,783 shares(v) RSU granted for the fiscal year ended March 31, 2024
Six non-executive directors (including retirees), eightexecutive officers (including retirees) and one
employee of Olympus Corporation’s subsidiaries

139,516 shares(vi) PSU granted for the performance evaluation period
starting from the fiscal year ended March 31, 2022 andended in the fiscal year ended March 31, 2024
Five executive officers (including retirees)

111,328 shares(vii) PSU granted for the performance evaluation period
starting from the fiscal year ended March 31, 2023 andending in the fiscal year ending March 31, 2025
One executive officer (retiree)50,936 shares(viii) PSU granted for the performance evaluation period
starting from the fiscal year ended March 31, 2024 andending in the fiscal year ending March 31, 2026
One executive officer (retiree)- 95 -

57,745 shares

Outline of the disposal of treasury shares（disposal decided on July 2, 2024）(1) Date of disposal

July 24, 2024

(2) Class and number of shares for
disposal

9,378 shares of common stock of Olympus Corporation(3) Disposal price¥2,542.5 per share(4) Total amount of disposal value¥24 million(5) Disposal recipients, the numberof such recipients, and thenumber of shares to be disposedof

Two Group employees of Olympus Corporation’s
subsidiaries (retirees)- 96 -

9,378 shares