Consolidated Financial Results
for the Nine Monthsof the Fiscal Year Ending March 31, 2024
<under IFRS>

February 14, 2024
Company Name: Olympus Corporation
Code Number: 7733
(URL: https://www.olympus.co.jp/)
Stock Exchange Listing: Prime Market of Tokyo Stock Exchange
Representative: Stefan Kaufmann, Director, Representative Executive Officer, President and CEO
Contact: Takayuki Aoyagi, Vice President, Accounting Department
Phone: 03-3340-2111
Scheduled date to submit the Quarterly Securities Report:
February 14, 2024
Scheduled date to commence dividend payments:–
Presentation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:Yes (for analysts and institutional investors)(Figures are rounded off to the nearest million yen)

1. Consolidated Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024
(From April 1, 2023 to December 31, 2023)(1) Consolidated Results of Operations (cumulative)(% indicate changes from the same period of the previous fiscal year)
Revenue

Operating profit

Adjusted operating
profit(¥ million)%

Profit before tax

ProfitNine months ended(¥ million)%(¥ million)%(¥ million)%(¥ million)%

December 31, 2023

675,714

5.3

39,035(72.6)

110,172(14.0)

33,018(76.3)

235,575

117.4

December 31, 2022

641,545

17.2

142,572

39.5

128,12919.2

139,37043.7

108,369

23.4

Nine months ended

Profit attributable toowners of parent(¥ million)%

December 31, 2023

235,212

Total comprehensive
income(¥ million)
%

117.4

271,408

Basic earnings per share

87.7

Diluted earnings per share

(¥)

(¥)

191.59191.15

December 31, 2022
108,21723.4
144,564
41.8
85.12
85.04
Note: The Scientific Solutions Business has been classified as a discontinued operation from the second quarter of the previous fiscal year.
Due to this, the amounts presented for revenue, operating profit, adjusted operating profit and profit before tax are the amounts fromcontinuing operations from which the discontinued operation has been excluded. The amounts presented for profit and profit attributableto owners of parent are aggregates of continuing operations and discontinued operation.

(2) Consolidated Financial Position

As of(¥ million)(¥ million)(¥ million)

Ratio of equity attributableto owners of parent
to total assets%

December 31, 2023

1,468,078

749,882

749,882

51.1

Total assets

Equity attributable toowners of parent

Total equity

March 31, 2023
1,508,701
641,234
640,085
Note: The figures as of March 31, 2023 retroactively reflect adjustments of provisional amounts related to the business combination.

42.4

2. Dividends
Annual dividends
First quarter

Second quarter(¥)

Fiscal year ended–
March 31, 2023
Fiscal year ending–
March 31, 2024
Fiscal year ending
March 31, 2024
(Forecast)
Note: Revisions of the forecast most recently announced: No

Third quarter

Year-end

Total

(¥)

(¥)

(¥)

(¥)

0.00

–

16.00

16.00

0.00

–
18.00

18.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(From April 1, 2023 to March 31, 2024)(% indicate changes from the same period of the previous fiscal year)
Revenue(¥ million)

Operating profit%(¥ million)%

Adjusted operating
profitProfit before tax(¥ million)(¥ million)

%

Basic
Profit attributable toearnings perowners of parent
share% (¥ million)%(¥)

Full year
924,000
4.8
57,000(69.5)
145,000(18.0)
51,000(72.0)
252,000
75.7
207.72
Note: Revisions of the forecast most recently announced: Yes
The Scientific Solutions Business has been classified as a discontinued operation from the second quarter of the previous fiscal year. Dueto this, the amounts presented for revenue, operating profit, adjusted operating profit and profit before tax in the forecast of financial
results for the fiscal year ending March 31, 2024 are the amounts from continuing operations. The amounts presented for profit
attributable to owners of parent and basic earnings per share are aggregates of continuing operations and discontinued operation.

* Notes(1) Changes in significant subsidiaries during the nine months under review (changes in specified
subsidiaries resulting in the changes in scope of consolidation): Yes
Newly included: None
Excluded:
1 company (Evident Corporation)(2) Changes in accounting policies and changes in accounting estimates
1)
2)
3)

Changes in accounting policies required by IFRS: No
Changes in accounting policies due to other reasons: No
Changes in accounting estimates: No(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023
1,266,178,700 shares
As of March 31, 2023
1,266,178,700 shares2) Total number of treasury shares at the end of the period
As of December 31, 2023
82,735,615 shares
As of March 31, 2023
12,641,218 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023
1,227,698,134 shares
Nine months ended December 31, 2022
1,271,290,238 shares* Quarterly financial results reports are exempt from quarterly reviews conducted by certified public
accountants or an audit corporation.
* Proper use of the forecast of financial results, and other special matters(Caution concerning forward-looking statements)
The forward-looking statements, including forecast of financial results, contained in these materials are
based on information currently available to Olympus Corporation and on certain assumptions deemed to bereasonable. Accordingly, Olympus Corporation cannot make promises to achieve such forecasts. Actual
business and other results may differ substantially due to various factors. Please refer to the section of“Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements” onpage 8 of the attached material for the conditions that form the assumptions for the forecast and cautions
concerning the use thereof.
(Adjusted operating profit)
Adjusted operating profit is the amount of profit after deducting other income and other expenses fromoperating profit. Adjusted operating profit is disclosed because it is one of the performance metrics of the
Olympus Group.

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Attached Material
Contents
1.

Qualitative Information Regarding Settlement of Accounts for the Nine Months ....................................... 2(1) Explanation of Results of Operations ...................................................................................................... 2(2) Financial Position .................................................................................................................................... 6(3) Cash Flows .............................................................................................................................................. 7(4) Explanation of important management contracts .................................................................................... 7(5) Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements ..... 82.

Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto ........................... 9(1) Condensed Quarterly Consolidated Statements of Financial Position .................................................... 9(2) Condensed Quarterly Consolidated Statements of Profit or Loss ......................................................... 11(3) Condensed Quarterly Consolidated Statements of Comprehensive Income ......................................... 12(4) Condensed Quarterly Consolidated Statements of Changes in Equity .................................................. 13(5) Condensed Quarterly Consolidated Statements of Cash Flows ............................................................ 15(6) Notes to Condensed Quarterly Consolidated Financial Statements ...................................................... 17(Notes on premise of going concern) .................................................................................................... 17(Reporting entity) .................................................................................................................................. 17(Basis of preparation) ............................................................................................................................ 17(Material accounting policies) ............................................................................................................... 18(Significant accounting estimates and associated judgments) ............................................................... 18(Business segments) .............................................................................................................................. 18(Cash and cash equivalents) .................................................................................................................. 20(Assets held for sale and liabilities directly associated with assets held for sale) ................................. 20(Impairment of non-financial assets) ..................................................................................................... 20(Provisions) ........................................................................................................................................... 21(Bonds and borrowings) ........................................................................................................................ 21(Equity and other equity items) ............................................................................................................. 21(Dividends) ............................................................................................................................................ 23(Revenue) .............................................................................................................................................. 23(Other income and other expenses) ....................................................................................................... 24(Per-share data) ..................................................................................................................................... 26(Cash flow information) ........................................................................................................................ 28(Financial instruments) .......................................................................................................................... 31(Discontinued operation) ....................................................................................................................... 34(Business combinations)........................................................................................................................ 35(Contingent liabilities)........................................................................................................................... 38(Subsequent events)............................................................................................................................... 38

1

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

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

Explanation of Results of Operations

In the second quarter ended September 30, 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 Private Equity, LP (together with its
affiliates, “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. Furthermore,
the amounts presented for revenue, operating profit, adjusted operating profit, profit before tax and profit
from continuing operations are the amounts from continuing operations from which the discontinued
operation has been excluded, while the amounts presented for profit and profit attributable to owners ofparent are aggregates of continuing operations and discontinued operation.
Additionally, the Olympus Group formerly had four reportable segments: “Endoscopic Solutions,”“Therapeutic Solutions,” “Scientific Solutions,” and “Others.” However, from the second quarter ended
September 30, 2022, they have been changed to three segments: “Endoscopic Solutions,” “Therapeutic
Solutions,” and “Others.”
Based on the above share transfer agreement, on April 3, 2023, we completed transferring all shares of
Evident Corporation (“Evident”), a consolidated subsidiary of Olympus Corporation to which our Scientific
Solutions Business was transferred through an absorption-type company split.
Trends in overall business results
During the nine months ended December 31, 2023 the global economy continued to move towards recovery,
but global monetary tightening and the effects of the slump in China’s real estate market pose downside risks.
In addition, the impact of the situation in the Middle East region also needs to be closely monitored.
Furthermore, impacts were felt from the war in Ukraine and global inflation along with rising raw material
prices and supply chain constraints. Notwithstanding a gradual improvement in business conditions, theJapanese economy was impacted by volatility in foreign exchange rates, and by the same soaring raw
material prices and supply chain constraints that affected the global economy. Moreover, the latest impact ofthe 2024 Noto Peninsula Earthquake also needs to be closely monitored.
Despite this environment, the Olympus Group is continuing to work to transform into a global medtech
company by pursuing our three priorities of “Patient safety and sustainability,” “Innovation for growth” and“Productivity” in line with the management strategy announced in May 2023.
Business results
Business results of continuing operations are presented in (1) to (10), and business results of the sum ofcontinuing operations and discontinued operation are presented in (11) below.

2Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Millions of yen)
Increase (Decrease)ratio (%)
5.3

Nine months ended
December 31, 2022
641,545

Nine months ended
December 31, 2023
675,714(2) Cost of sales

207,821

224,281

16,4607.9(3) Selling, general andadministrative expenses

306,085

340,90734,822

11.4(4) Share of profit (loss) ofinvestments accounted forusing equity method/Other
income/Other expenses

14,933(71,491)(86,424)–(5) Operating profit

142,572

39,035(103,537)(72.6)(6) Adjusted operating profit

128,129

110,172(17,957)(14.0)(1) Revenue

Increase (Decrease)34,169(7) Finance income (loss)(3,202)(6,017)(2,815)–(8) Profit before tax

139,370

33,018(106,352)(76.3)(9) Income taxes

33,751

25,529(8,222)(24.4)(10) Profit from continuing
operations

105,619

7,489(98,130)(92.9)(11) Profit attributable toowners of parent

108,217

235,212

126,995

117.4

Exchange rate (Yen/USD)

136.51

143.29

6.78–

Exchange rate (Yen/EUR)

140.59155.29

14.70–

Exchange rate (Yen/CNY)

19.88

19.98

0.10

–

(1) Revenue
Revenue increased by ¥34,169 million year on year to ¥675,714 million. This increase was due to an increase
in revenue in all business of the Endoscopic Solutions Business, Therapeutic Solutions Business and otherbusinesses. Details are as described in “Analysis of the performance by segment” below.
(2) Cost of sales
Cost of sales increased by ¥16,460 million year on year to ¥224,281 million. The cost-to-sales ratio
deteriorated by 0.8 percentage points year on year to 33.2%, as a result of recording a provision of
approximately ¥4,200 million for expenses associated with the voluntary recall of small intestine endoscope
systems in the Endoscopic Solutions Business.
(3) Selling, general and administrative expenses
Selling, general and administrative expenses increased by ¥34,822 million year on year to ¥340,907 million.
The main factors are an increase in various project-related expenses aimed at improving efficiency and otherfactors, as well as personnel expenses due to future growth and strengthening of the business operating base,including quality assurance and regulatory compliance.
(4) Share of profit (loss) of investments accounted for using equity method/Other income/Other expenses
The sum of share of profit (loss) of investments accounted for using equity method, other income, and otherexpenses amounted to expenses of ¥71,491 million, and the profit or loss deteriorated by ¥86,424 million
year on year. A gain on sale of fixed assets of approximately ¥16,400 million was recorded in other income in
the previous fiscal year, along with the recording of approximately ¥1,300 million in adjustments to theoriginal acquisition consideration at the time of acquisition due to changes in the fair value of the contingent
consideration, which makes up part of the acquisition consideration of Medi-Tate Ltd. However, in the period
under review a gain on transfer of approximately ¥1,100 million related to the collagen business, etc. (which
had been included in other businesses) was the main item recorded, and other income declined by ¥18,577
million year on year. In addition, although in the previous fiscal year approximately ¥2,200 million in
expenses for the promotion of Transform Olympus were recorded in other expenses, in the period underreview other expenses increased by ¥67,003 million year on year. This was due to a loss of approximately¥50,800 million related to the discontinuation of the manufacture and sale of Veran Medical Technologies,
Inc.’s electromagnetic navigation systems, expenses related to holistic quality transformation program3

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Elevate of approximately ¥17,000 million, special additional payment and other expenses associated with
implementation of career support system for external opportunity of approximately ¥2,000 million, andimpairment losses on development assets in Therapeutic Solutions Business of approximately ¥1,400 million.
(5) Operating profit
Reflecting the factors stated above, operating profit decreased by ¥103,537 million year on year to ¥39,035
million.
(6) Adjusted operating profit
Reflecting the factors stated above, adjusted operating profit, which is the amount of profit after deducting
other income and other expenses from operating profit, decreased by ¥17,957 million year on year to¥110,172 million.
(7) Finance income (loss)
Finance loss, which reflects finance income and finance costs, deteriorated ¥2,815 million year on year to¥6,017 million. The deterioration in finance loss was due mainly to the increase of foreign exchange losses asa result of the yen depreciating against various currencies.
(8) Profit before tax
Reflecting the factors stated above, profit before tax decreased by ¥106,352 million year on year to ¥33,018
million.
(9) Income taxes
The decreased profit before tax led income taxes to decrease by ¥8,222 million year on year to ¥25,529
million.
(10) Profit from continuing operations
The decreased profit before tax led profit from continuing operations to decrease by ¥98,130 million year on
year to ¥7,489 million.
(11) Profit attributable to owners of parent
As a result of recording a gain of approximately ¥349.0 billion on the transfer of Scientific Solutions
Business in discontinued operations during the nine months ended December 31, 2023, profit attributable toowners of parent increased by ¥126.995 billion year on year to ¥235.212 billion.
(Impact of foreign exchanges rates)
Compared to the same period of the previous fiscal year, the yen depreciated against the USD, EUR, and
CNY. The average exchange rate during the period was ¥143.29 against the USD (¥136.51 in the same periodof the previous fiscal year), ¥155.29 against the EUR (¥140.59 in the same period of the previous fiscal year)and ¥19.98 against the CNY (¥19.88 in the same period of the previous fiscal year), which caused revenue,
operating profit and adjusted operating profit to increase by ¥28,919 million, ¥6,869 million and ¥9,743
million, respectively, year on year.

4Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Analysis of the performance by segment
Endoscopic Solutions Business

Revenue
Operating profit (loss)

Nine months ended
December 31, 2022
398,990
110,703

Nine months ended
December 31, 2023
419,316
83,580

Increase (Decrease)
20,326(27,123)(Millions of yen)
Increase (Decrease)ratio (%)
5.1
(24.5)

Consolidated revenue in the Endoscopic Solutions Business amounted to ¥419,316 million (up 5.1% year onyear), while operating profit amounted to ¥83,580 million (down 24.5% year on year).
In GI Endoscopy, while performance was favorable in North America where the gastrointestinal endoscopy
system “EVIS X1” was launched, year-on-year declines in sales were recorded in Europe, which had been
lifted in the same period of the previous fiscal year by the effects of winning major projects in Russia andother countries, and in China that was affected by the anti-corruption campaign, resulting in the performanceremaining at the same level as the same period of the previous fiscal year.
In Surgical Endoscopy, positive year-on-year growth was recorded as a result of increased sales from the“VISERA ELITE III” surgical endoscopy system launched in Europe and in Asia and Oceania.
In Medical Service, all regions showed positive year-on-year growth due to an increase in new contracts, inaddition to stable sales of existing service contracts including maintenance services.
Operating profit in the Endoscopic Solutions Business decreased. Despite the positive impact of the increase
in revenue, in addition to the recording of a provision of approximately ¥4,200 million for expenses
associated with the voluntary recall of small intestine endoscope systems, there were increases in personnel
expenses related to measures taken to strengthen the business operation foundation, such as future growth,quality assurance, and compliance with laws and regulations, and expenses related to various projects,
including quality assurance and compliance with laws and regulations, as well as expenses related to holistic
quality transformation program Elevate of approximately ¥10,800 million posted in other expenses.
Therapeutic Solutions Business

Revenue
Operating profit (loss)

Nine months ended
December 31, 2022
233,942
48,116Nine months ended
December 31, 2023
247,226(16,176)

Increase (Decrease)
13,284(64,292)(Millions of yen)
Increase (Decrease)ratio (%)
5.7–

Consolidated revenue in the Therapeutic Solutions Business amounted to ¥247,226 million (up 5.7% year onyear), while operating loss amounted to ¥16,176 million (compared with an operating profit of ¥48,116
million in the same period of the previous fiscal year).
GI-EndoTherapy saw positive growth, primarily in North America and Europe, recording higher revenue year
on year. Furthermore, sales increased in product groups for ERCP (Endoscopic Retrograde Cholangio
Pancreatography), which are used in endoscopic diagnoses and treatment of pancreatic duct, bile duct, etc.,
product groups for ESD (Endoscopic Submucosal Dissection) and EMR (Endoscopic Mucosal Resection),
which are used in lesion resection, and the sampling of biopsy forceps, etc., which are used for collecting
tissue for screening examinations.
Urology recorded higher revenue year on year, due mainly to positive growth in Europe and Asia andOceania, as well as the effects of yen depreciation. Resection electrodes for BPH (Benign Prostatic
Hyperplasia) and other products also contributed to the increase in sales.
Respiratory saw positive growth, primarily in North America and Europe, recording higher revenue year on
year due in part to the effects of yen depreciation. Sales of devices used mainly for EBUS-TBNA(Endobronchial Ultrasound-guided Transbronchial Needle Aspiration) increased.
Other Therapeutic Areas recorded higher revenue year on year due to a rise in demand before the end ofhandling of other companies’ products in Japan as well as the effects of yen depreciation.
Operating profit in the Therapeutic Solutions Business declined despite the positive impact of higher sales.
This was due not only to increased expenses related to various projects, including quality assurance and5Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

compliance with laws and regulations and increase in personnel expenses due to future growth andstrengthening of the business operating base, including quality assurance and regulatory compliance but also
to a loss of approximately ¥50,800 million related to the discontinuation of the manufacture and sale of Veran
Medical Technologies, Inc.’s electromagnetic navigation systems, expenses related to holistic qualitytransformation program Elevate of approximately ¥6,200 million, and impairment losses on development
assets in Therapeutic Solutions Business of approximately ¥1,400 million recorded in other expenses.

Others

Revenue
Operating profit (loss)

Nine months ended
December 31, 2022
8,613
(917)

Nine months ended
December 31, 2023
9,172
971

Increase (Decrease)
559
1,888

(Millions of yen)
Increase (Decrease)ratio (%)
6.5–

In other businesses, the Olympus Group conducts R&D and exploratory activities for new businesses in
addition to engaging in the developing, manufacturing, and selling of biomedical materials, such as synthetic
bone filler, and orthopedic equipment.
Consolidated revenue in other businesses amounted to ¥9,172 million (up 6.5% year on year), while
operating profit amounted to ¥971 million (compared with an operating loss of ¥917 million in the same
period of the previous fiscal year).
Revenue increased due to an increase in demand before the transfer of the collagen business at Olympus
Terumo Biomaterials Corporation in the first quarter of the current fiscal year. Operating profit in otherbusinesses improved due in part to gains on the transfer of the collagen business and other businesses ofapproximately ¥1,100 million, recorded in other income.
(2)

Financial Position

In the third quarter ended December 31, 2023, the Olympus Group retroactively adjusted the consolidated
statements of financial position as of the end of the previous fiscal year due to the adjustment of the fair valueof assets acquired and liabilities assumed of Odin Medical Ltd., which was acquired in December 2022.
Details regarding this retroactive adjustment are as described in the note (page 35) related to (Businesscombinations).
[Assets]
As of the end of the third quarter under review, total assets decreased by ¥40,623 million compared to the endof the previous fiscal year to ¥1,468,078 million. In current assets, cash and cash equivalents increased by¥179,243 million, mainly as a result of the transfer of the Scientific Solutions Business, while inventories
rose by ¥23,523 million, other financial assets increased by ¥17,423 million, primarily due to deposits forshare repurchase, and income taxes receivable on gain on transfer of the Scientific Solutions Business, etc.
grew by ¥15,103 million. On the other hand, assets held for sale declined by ¥169,621 million following thetransfer of the Scientific Solutions Business. In non-current assets, exchange rate effects caused an increase inproperty, plant and equipment of ¥10,686 million, while deferred tax assets decreased by ¥97,048 million due
mainly to a gain on the transfer of the Scientific Solutions Business. In addition, intangible assets decreasedby ¥17,535 million as a result of the impairment loss related to Veran Medical Technologies, Inc.
[Liabilities]
Total liabilities decreased by ¥149,271 million from the end of the previous fiscal year to ¥718,196 million.
Income taxes payable on gains on the transfer of Scientific Solutions Business decreased by ¥73,426 million,
liabilities directly related to assets held for sale decreased by ¥43,253 million following the completion of the
Scientific Solutions Business transfer, and bonds and borrowings decreased by ¥35,378 million.

6

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

[Equity]
Total equity increased by ¥108,648 million from the end of the previous fiscal year to ¥749,882 million. This
increase was achieved despite share repurchase of ¥141,650 million and dividends of surplus of ¥20,240
million, mainly as a result of profit attributable to owners of parent of ¥235,212 million arising from thetransfer of the Scientific Solutions Business and other factors, and an increase of ¥39,037 million in othercomponents of equity due mainly to exchange differences on translation of foreign operations.
As a result of the foregoing, equity attributable to owners of parent to total assets increased from 42.4% as ofthe end of the previous fiscal year to 51.1%.
(3)

Cash Flows

Cash and cash equivalents at the end of the third quarter under review reached ¥348,572 million, an increase of¥143,060 million from the end of the previous fiscal year. The following are the cash flows for the ninemonths ended December 31, 2023.
[Cash flows from operating activities]
Net cash used in operating activities for the nine months ended December 31, 2023 was ¥12,861 million(compared with ¥54,943 million provided for the nine months ended December 31, 2022). Although there
were positive factors such as adjustment for depreciation and amortization of ¥49,135 million, adjustment for
impairment loss of ¥42,805 million, profit before tax of ¥33,018 million, and a decline in trade and otherreceivables of ¥13,523 million, this decrease was driven mainly by income taxes paid of ¥137,813 million
and an increase in inventories of ¥20,956 million.
[Cash flows from investing activities]
Net cash provided by investing activities for the nine months ended December 31, 2023 was ¥391,445
million (compared with ¥37,860 million used for the nine months ended December 31, 2022). Cash flows
from investing activities increased mainly due to the receipt of ¥379,091 million in consideration for thetransfer of Scientific Solutions Business and the collection of ¥52,931 million in loans receivable fromEvident, etc. despite expenditures of ¥34,408 million for the purchase of property, plant and equipment suchas production equipment and ¥11,425 million for the purchase of intangible assets.
[Cash flows from financing activities]
Net cash used in financing activities for the nine months ended December 31, 2023 was ¥240,785 million(compared with ¥112,434 million used for the nine months ended December 31, 2022). The main factors
behind this were payments for share repurchase and payment of deposits for share repurchase of ¥160,000
million, repayments of long-term borrowings of ¥40,000 million, and dividends paid of ¥20,240 million.
(4)

Explanation of important management contracts

The following is a significant new contract concluded during the third quarter of the current fiscal year.
(Business Alliance Agreement)
Name of the contracting
companyCounterparty

Country

1. Sony Corporation
Olympus Corporation

2. Sony Olympus
Medical Solutions Inc.

Japan

Contract details
Business alliance in productdevelopment of nextgeneration endoscope systems

The following is a significant contract terminated during the third quarter of the current fiscal year.
(Affiliation Agreement)
7

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Name of the contracting
companyCounterparty

Olympus Corporation

Terumo Corporation

CountryJapan

Contract details

Contract term

Alliance for development andsales in the field of medical
devices

One year from April 25, 2001,
with automatic annual
extensions

Note: Olympus Corporation and Terumo Corporation have agreed to transfer the above alliance agreement to a
separate contract as of October 30, 2023.

(5)

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

In terms of the forecasts of consolidated financial results for the fiscal year ending March 31, 2024, we haverevised the forecasts announced in our “Consolidated Financial Results for the Six Months of the Fiscal YearEnding March 31, 2024” released on November 9, 2023. After taking into consideration progress in the third
quarter relative to the assumption of the previous outlook, the impact of the 2024 Noto Peninsula Earthquake,and the business environment in the fourth quarter, we have revised the previously announced consolidated
earnings forecasts as follows.
The Scientific Solutions Business has been classified as a discontinued operation from the second quarter
ended September 30, 2022. Due to this, the amounts presented for revenue, operating profit, adjusted
operating profit and profit before tax are the amounts from continuing operations from which thediscontinued operation has been excluded. The amount presented for profit attributable to owners of parent is
an aggregate of continuing operations and discontinued operation.
In addition, foreign exchange rates assumed in the forecasts for the fourth quarter are ¥144 per USD, ¥157
per EUR, and ¥20.40 per CNY. The exchange rate assumptions for the full year, reflecting the results of thenine months ended December 31, 2023, are ¥143.47 per USD, ¥155.72 per EUR, and ¥20.09 per CNY(foreign exchange rates assumed in the previous forecast are ¥145 per USD, ¥155.19 per EUR, and ¥20.07
per CNY).

Previous Forecast (A)958,000

100,000

174,500

92,000

Profitattributableto owners ofparent(Millions ofyen)
289,000

Revised Forecast (B)924,000

57,000145,000

51,000252,000

207.72

Increase (Decrease)(B-A)(34,000)(43,000)(29,500)(41,000)(37,000)(30.4)

Increase (Decrease)ratio (%)

(3.5)

(43.0)(16.9)(44.6)(12.8)(12.8)

Revenue(Millions ofyen)

Adjusted
Operating profit
Profit before tax
operating profit(Millions of(Millions of(Millions of
yen)
yen)
yen)

8

Basic
earnings per
share
(Yen)
238.12Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

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

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

As of March 31, 2023
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Income taxes receivable
Other current assets
Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Retirement benefit asset
Investments accounted for using equity method
Trade and other receivables
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

9

As of December 31,
2023

169,329
174,672
11,360162,994
15,96022,421
556,736
169,621726,357

348,572
165,268
28,783
186,51731,06327,937788,140–
788,140

238,731
181,324
116,757
27,0281,010
36,98021,476
156,5432,495
782,344
1,508,701

249,417
172,816
99,222
28,370466
39,95628,64659,4951,550
679,938
1,468,078

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Millions of yen)

As of March 31, 2023
LIABILITIES AND EQUITY
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
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
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Other components of equity related to disposal groupheld for sale
Retained earnings
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

10

As of December 31,
2023

62,91949,97023,23599,567
19,111
163,837
418,639
43,253461,892

58,376
79,961
27,903
26,141
23,336
164,238
379,955–
379,955

290,087
61,66820,416
2,912
12,29818,194
405,575
867,467

224,718
59,57818,7302,392
14,235
18,588338,241
718,196

124,643
92,150(28,086)
77,280124,643
91,405(168,482)
116,317

3,034–

371,064
640,0851,149
641,234
1,508,701

585,999
749,882–
749,882
1,468,078

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(2)

Condensed Quarterly Consolidated Statements of Profit or Loss

Continuing operations
Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted for using
equity method
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit before tax
Income taxes
Profit from continuing operations
Discontinued operation
Profit from discontinued operation
ProfitProfit attributable to:
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic earnings per share
Continuing operations
Discontinued operation
Basic earnings per share
Diluted earnings per share
Continuing operations
Discontinued operation
Diluted earnings per share

11(Millions of yen)

Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

641,545
207,821433,724
306,085

675,714224,281451,433
340,907

490

(354)

21,911
7,468
142,572
2,983
6,185
139,370
33,751
105,619

3,334
74,471
39,035
1,876
7,893
33,01825,5297,489

2,750
108,369

228,086
235,575

108,217152
108,369

235,212363
235,575¥82.96¥2.16¥85.12¥5.80¥185.79¥191.59¥82.88¥2.16¥85.04¥5.79¥185.36¥191.15Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(3)

Condensed Quarterly Consolidated Statements of Comprehensive Income

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income(Millions of yen)

Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

108,369

235,575

(129)

(42)

Remeasurements of defined benefit plans
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Cash flow hedges
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income

141
12

(171)
(213)

37,787(1,604)36,18336,195
144,564

35,681365
36,04635,833
271,408

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

144,412152
144,564

271,045363
271,408

12

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(4)

Condensed Quarterly Consolidated Statements of Changes in Equity
Nine months ended December 31, 2022
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2022

Share capital

CapitalsurplusTreasuryshares124,643

91,239(45,589)

Other
componentsof equity
Other
components related todisposalof equitygroup held
for sale
34,818–

ProfitOther comprehensive
incomeComprehensive income

Total

Noncontrollinginterests

Total equity

305,057

510,168

1,194

511,362108,217108,217152

108,369

Retainedearnings

36,195––

Share repurchase–36,19536,195–108,217

144,412

36,195
152

144,564(33,237)(33,237)(33,237)

Disposal of treasury shares

(100)

100

0

0

Cancellation of treasury
shares(23,271)

23,271––Dividends from surplus
Transfer from retained
earnings to capital surplus

23,252

Transfer from othercomponents of equity toretained earnings(374)

Share-based paymenttransactions

783

Balance at December 31,
2022(17,822)(23,252)

–

–

374

–

–

947

947

–

–

164

Transfer to othercomponents of equity
related to disposal groupheld for sale
Total transactions withowners(17,822)(2,427)

2,427

(226)

(18,048)–664(9,702)(2,801)

2,427(40,700)(50,112)(226)(50,338)

124,643

91,903(55,291)

68,212

2,427

372,574

604,468

1,120

605,588

13

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Nine months ended December 31, 2023
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2023

Share capital

CapitalsurplusTreasuryshares124,643

92,150(28,086)

Other
components
Otherof equity
components related toof equity
disposalgroup held
for sale
77,2803,034

ProfitOther comprehensive
incomeComprehensive income––

Share repurchase
Disposal of treasury shares

(23)

–

38,867(3,034)38,867(3,034)(1,592)

Total transactions withownersBalance at December 31,
2023

371,064

640,0851,149

641,234

235,212235,212363

235,575

35,833
235,212271,045

35,833363

271,408

23

0

0

170

Equity transactions with
non-controlling interests

Total equity(141,650)

Transfer from othercomponents of equity toretained earnings
820

Noncontrollinginterests(141,650)

50

Share-based paymenttransactions

Total(141,650)

Dividends from surplus
Transfer from retained
earnings to capital surplus

Retainedearnings(20,057)(20,057)

(50)

–

–

(170)

–

–

2,051

2,051

1,231

(183)

(20,240)(1,592)(1,329)(2,921)–(745)(140,396)

170–(20,277)(161,248)(1,512)(162,760)

124,643

91,405(168,482)

116,317–585,999

749,882–

749,882

14

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(5)

Condensed Quarterly Consolidated Statements of Cash Flows

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 other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provisions
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

15(Millions of yen)

Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

139,370
1,934
52,313
1,311(2,870)
4,533(15,834)

33,018348,114
49,13542,805(1,735)
4,220
187

(490)

354

–
2,853
(31,354)(2,830)(1,500)1,156(2,333)(9,577)
136,6822,840
30(4,070)(80,539)
54,943(349,030)
13,523(20,956)(6,049)(2,208)(626)
2,378
13,793
126,923
1,732
3(3,706)(137,813)(12,861)Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from transfer of the Scientific Solutions
Business
Proceeds from the transfer of the collagen business anddental product sales businesses
Payments for acquisition of subsidiaries
Proceeds from sale of subsidiaries
Collection of loans receivable
Payments for contingent consideration
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net 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
Change in deposits due to share repurchase
Redemption of bonds
Payments for acquisition of interests in subsidiaries from
non-controlling interests
Other
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 period

16(Millions of yen)

Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

(2,137)(33,953)
19,840(15,234)(3,583)–(34,408)
1,181(11,425)(15)–

379,091–

1,656(3,909)
–
843
(580)
853
(37,860)–
4,429
52,931(1,946)(49)
391,445(81)(3)(14,938)–(17,822)(226)(33,237)(6,762)(40,000)(14,887)(40,000)(20,057)(183)(141,650)(18,350)––(2,921)

632(112,434)(2,734)(240,785)

4,102

5,261

(91,249)
302,572
211,323

143,060
205,512348,572Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(6)

Notes to Condensed Quarterly Consolidated Financial Statements(Notes on premise of going concern)
No items to report(Reporting entity)
Olympus Corporation is a joint stock company located in Japan. The address of its registered head office isHachioji-shi, Tokyo. Olympus Corporation’s condensed quarterly consolidated financial statements comprise
Olympus Corporation and its subsidiaries (hereinafter, the “Olympus Group”) and interests in Olympus
Corporation’s associates.
The Olympus Group is principally engaged in the manufacturing and sales of endoscopic, therapeutic andother products. Details of each business are as described in (Business segments) (page 18).
(Basis of preparation)(1) Statement of the condensed quarterly consolidated financial statements’ compliance with IFRSThe condensed quarterly consolidated financial statements of the Olympus Group have been preparedin accordance with IAS 34. Since the requirements for a “Specified Company of DesignatedInternational Accounting Standards” set forth in Article 1-2 of the “Regulation on Terminology,
Forms, and Preparation Methods of Quarterly Consolidated Financial Statements” are satisfied, theOlympus Group adopts the provisions of Article 93 of the same Regulation. The condensed quarterly
consolidated financial statements do not include all the information and disclosures required in theannual consolidated financial statements and should be used in conjunction with the Olympus Group’s
annual consolidated financial statements as of March 31, 2023.
These condensed quarterly consolidated financial statements were approved by Director,
Representative Executive Officer, President and CEO Stefan Kaufmann, and Executive Officer and
CFO Chikashi Takeda on February 14, 2024.
(2) Functional currency and presentation currency
The Olympus Group’s condensed quarterly consolidated financial statements are presented in Japaneseyen, which is also Olympus Corporation’s functional currency, and figures are rounded off to thenearest million yen.
(3) Changes in presentation methods(Condensed Quarterly Consolidated Statements of Cash Flows)(Cash flows from operating activities)
In the nine months ended December 31, 2022, because “Impairment losses,” which had previously
been included in “Other” of “Cash flows from operating activities,” increased in monetary importance,
it has been listed independently from the nine months ended December 31, 2023. To reflect thischange in the presentation method, we have reorganized our Condensed Quarterly Consolidated
Financial Statements for the nine months ended December 31, 2022.
As a result, in the Condensed Quarterly Consolidated Statements of Cash Flows for the nine months
ended December 31, 2022, the negative ¥8,266 million presented as “Other” in “Cash flows fromoperating activities” was reorganized into “Impairment losses” of ¥1,311 million and “Other” ofnegative ¥9,577 million.
(Cash flows from investing activities)
In the nine months ended December 31, 2022, because “Collection of loans receivable” and “Payments
for contingent consideration,” which had previously been included in “Other” of “Cash flows frominvesting activities,” increased in monetary importance, they have been listed independently from thenine months ended December 31, 2023. To reflect this change in the presentation method, we havereorganized our Condensed Quarterly Consolidated Financial Statements for the nine months ended
December 31, 2022.
As a result, in the Condensed Quarterly Consolidated Statements of Cash Flows for the nine months
ended December 31, 2022, ¥1,116 million presented as “Other” in “Cash flows from investing
activities” was reorganized into “Collection of loans receivable” ¥843 million, “Payments forcontingent consideration” of negative ¥580 million, and “Other” of ¥853 million.
17

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Material accounting policies)
The material accounting policies adopted for the condensed quarterly consolidated financial statements of the
Olympus Group for the nine months ended December 31, 2023 are the same as those applied for the fiscal
year ended March 31, 2023.
(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.
The details of significant accounting estimates and associated judgments in the condensed quarterly
consolidated financial statements are unchanged from the contents described in the consolidated financial
statements for the previous fiscal year.
(Business segments)(1) Overview of reportable segments
The reportable segments of the Olympus Group are the units for which separate financial information
is available and according to which reporting is periodically conducted to decide how to allocate
management resources and assess business performance.
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 the discontinued operation is provided in (Discontinued operation) (page 34). The
transfer of the shares of Evident, 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 and business results for reportable segments
Revenue and business results of each reportable segment of the Olympus Group are as follows. The
accounting treatment used for reportable segments is as described in (Material accounting policies)(page 18).

18

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Nine months ended December 31, 2022
(Millions of yen)
Reportable Segment
Adjustment(Note 2, 3)

Amount oncondensed
quarterly
consolidated
financialstatements

641,545–

641,545

211

211

(211)

–

233,9428,824

641,756(211)

641,545

48,116(917)

157,902(15,330)

142,572

Endoscopic
Solutions

Therapeutic
Solutions

Others

Revenue from outside
customers

398,990

233,9428,613

Intersegment revenue(Note 1)––

Total revenue

398,990

Operating profit (loss)

110,703

Total

Revenue

Finance income

2,983

Finance costs

6,185

Profit before tax

139,370

Other items
Share of profit (loss) ofinvestments accounted forusing equity method

490

–

–

490

–

490

Depreciation andamortization

29,271

14,513887

44,671

4,436

49,107

Impairment losses

907

401

3

1,311

–

1,311

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.

Nine months ended December 31, 2023
(Millions of yen)
Reportable Segment
Adjustment(Note 2)

Amount oncondensed
quarterly
consolidated
financialstatements

675,714–675,714

104

104

(104)

–

247,226

9,276

675,818(104)675,714(16,176)

971

68,375(29,340)

39,035Endoscopic
Solutions

Therapeutic
Solutions

Others

Revenue from outside
customers

419,316

247,226

9,172

Intersegment revenue(Note 1)––

Total revenue

419,316

Operating profit (loss)

83,580Total

Revenue

Finance income

1,876

Finance costs

7,893

Profit before tax

33,018Other items
Share of profit (loss) ofinvestments accounted forusing equity method
Depreciation andamortization
Impairment losses (reversalof impairment losses) (Note
3)

(346)

(8)

–

(354)

–

(354)

30,89813,581

728

45,207

3,928

49,135138

42,671–42,809(4)42,805

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.

19

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

3. The operating loss of the Therapeutic Solutions Business includes a loss of ¥50,830 million incurred from thediscontinuation of manufacturing and sales of Veran Medical Technologies, Inc. products. Details are as
described in (Other income and other expenses) (page 24). Such losses include impairment losses of ¥41,314
million. Details are as described in (Impairment of non-financial assets) (page 20).

(Cash and cash equivalents)
Cash and cash equivalents included in balances at end of period in the condensed quarterly consolidated
statement of cash flows are as follows.

Cash and cash equivalents in the condensed
quarterly consolidated statements of financial
position
Cash and cash equivalents included in assets held
for saleCash and cash equivalents at end of period in thecondensed quarterly consolidated statement ofcash flows(Millions of yen)
Nine months ended December Nine months ended December
31, 2022
31, 2023(April 1, 2022 - December 31, (April 1, 2023 - December 31,
2022)
2023)
175,748

348,572

35,575–211,323

348,572(Assets held for sale and liabilities directly associated with assets held for sale)
The nine months ended December 31, 2023 saw the completion of procedures for the sale of assets andliabilities related to the Scientific Solutions Business and of assets and liabilities related to the collagen 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 (Cash flow information) (page 28).
(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 (Cash flow information) (page 28).

(Impairment of non-financial assets)
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 in the Other expenses item of
the condensed quarterly consolidated statement of profit or loss.
Business assets are mainly grouped according to business segment, while assets scheduled for disposal aregrouped according to the assets to be disposed or sold, and idle assets are grouped individually.
The main impairment losses recognized in the nine months ended December 31, 2023 were as follows.
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 ¥41,314 million was recorded (¥20,041 million for goodwill; ¥15,929
million for technology-related assets; ¥247 million for trademarks; ¥3,568 million for research anddevelopment in progress; and ¥1,146 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 nine months ended December 31, 2023, it was found that it was difficult to20

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

achieve 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 was also
found that the products did not meet the quality standards required internally. Due to the decision to terminate
the development and sale of VMT’s products, the impairment test was performed separately for 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 to sell, this amountwas zero. It was classified as level 3 in the fair value hierarchy. Details regarding the fair value hierarchy are
as described in (Financial instruments) (Page 31).
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 the growth of the
Respiratory business. However, as a result of an independent investigation it became apparent that VMT’stechnology 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 thehighest priority on the safety of patients during these deliberations, we concluded 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 the clinical needs of our customers are undergoing
rapid change. Accordingly, on September 6, 2023 we took the decision to discontinue the manufacture andsale of these products. Loss amounts associated with the discontinuation of manufacture and sale of theseproducts are as described in (Other income and other expenses) (Page 24).
(Provisions)(Voluntary recall of Olympus Corporation’s products)
As a result of an independent market survey conducted by Olympus Corporation, and of comparisons to inhouse quality standards, we made the decision to implement a voluntary recall of small intestine endoscope
systems in line with our policy of putting the highest priority on ensuring the safety of patients. A provisionof ¥4,157 million for expenses associated with this market response was made in the cost of sales of theEndoscopic Solutions Business in the nine months ended December 31, 2023.
(Bonds and borrowings)
During the nine months ended December 31, 2022, Olympus Corporation redeemed the 22nd unsecured
corporate bonds of ¥10,000 million (interest rate 0.22%, due September 20, 2022) and the 24th unsecured
corporate bonds of ¥30,000 million (interest rate 0.06%, due December 5, 2022).
There were no significant transactions during the nine months ended December 31, 2023.
(Equity and other equity items)
Nine months ended December 31, 2022
(Cancellation of treasury shares)
Based on resolution of the Board of Directors meeting held on May 11, 2022, Olympus Corporation canceledtreasury shares on June 8, 2022. Due to this cancellation, treasury shares decreased by 13,402,333 shares
during the nine months ended December 31, 2022.
The impact of this cancellation is that treasury shares decreased by ¥23,271 million (contraction of negative
stated amount in equity), and capital surplus decreased by ¥23,271 million.
The amount of the above cancellation was deducted from other capital surplus in capital surplus, but theamount that exceeds other capital surplus was deducted from retained earnings.
(Disposal of treasury shares)
Olympus Corporation conducted the disposal of treasury shares based on its restricted stock unit (RSU)
system and performance share unit (PSU) system on July 22, 2022 and December 9, 2022. Due to thisdisposal, treasury shares decreased by 93,780 shares during the nine months ended December 31, 2022.
The impact of this disposal is that treasury shares decreased by ¥164 million.
21

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Share repurchase)
At a meeting of the Board of Directors held on November 11, 2022, Olympus Corporation resolved therepurchase of its own shares and the specific means of repurchase as provided for under Article 459 Section 1of the Companies Act and Article 32 of Olympus Corporation’s Articles of Incorporation, and carried out asfollows:(1) Details of the resolution passed at the meeting of the Board of Directors held on November 11, 2022:
1. Class of shares:

Common stock of Olympus Corporation

2. Total number of shares to be repurchased:

21,000,000 shares (maximum)

3. Total amount of shares to be repurchased:¥50,000 million (maximum)

4. Repurchase period:

November 14, 2022 to February 28, 2023

5. Repurchase method:

Market purchase based on a discretionary trading
contract on the Tokyo Stock Exchange(2) Treasury shares repurchased based on the above resolution by the Board of Directors
1. Total number of shares repurchased:

12,601,000 shares

2. Total amount of shares repurchased:¥33,234 million

3. Repurchase period:

November 14, 2022 to December 31, 2022

Nine months ended December 31, 2023
(Disposal of treasury shares)
Olympus Corporation conducted the disposal of treasury shares based on its restricted stock unit (RSU)
system and performance share unit (PSU) system on June 14, 2023 and July 25, 2023. Due to this disposal,
treasury shares decreased by 554,030 shares during the nine months ended December 31, 2023.
The impact of this disposal is that treasury shares decreased by ¥1,231 million.
(Share repurchase)
At meetings of the Board of Directors held on May 12, 2023 and November 9, 2023, Olympus Corporation
resolved the repurchase of its own shares and the specific means of repurchase as provided for under Article
459 Section 1 of the Companies Act and Article 32 of Olympus Corporation’s Articles of Incorporation, andcarried out the repurchase of its own shares as follows:(1) Details of the resolution passed at the meeting of the Board of Directors held on May 12, 2023:
1. Class of shares:

Common stock of Olympus Corporation

2. Total number of shares to be repurchased:

55,000,000 shares (maximum)

3. Total amount of shares to be repurchased:¥100,000 million (maximum)

4. Repurchase period:

May 15, 2023 to January 31, 2024

5. Repurchase method:

Market purchase based on a discretionary trading
contract on the Tokyo Stock Exchange(2) Treasury shares repurchased based on the above resolution by the Board of Directors
1. Total number of shares repurchased:

51,032,000 shares

2. Total amount of shares repurchased:¥100,000 million

3. Repurchase period:

May 15, 2023 to November 8, 2023 (based on
22

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

delivery date)(3) Details of the resolution passed at the meeting of the Board of Directors held on November 9, 2023:
1. Class of shares:

Common stock of Olympus Corporation

2. Total number of shares to be repurchased:

53,000,000 shares (maximum)

3. Total amount of shares to be repurchased:¥80,000 million (maximum)

4. Repurchase period:

November 10, 2023 to March 31, 2024

5. Repurchase method:

Market purchase based on a discretionary trading
contract on the Tokyo Stock Exchange(4) Treasury shares repurchased based on the above resolution by the Board of Directors
1. Total number of shares repurchased:

19,625,600 shares

2. Total amount of shares repurchased:¥41,650 million

3. Repurchase period:

November 10, 2023 to December 31, 2023 (based ondelivery date)

Details regarding the repurchase of its own shares after the end of the third quarter ended December 31, 2023
are as described in (Subsequent events) (Page 38).
(Equity transactions with non-controlling interests)
On August 4, 2023, the Olympus Group acquired all the shares of Olympus Terumo Biomaterials
Corporation (“OTB”), raising its equity interest in OTB from 66.6% to 100%, and resulting in OTB
becoming a wholly owned subsidiary of the Olympus Group. As a result, non-controlling interests and capitalsurplus decreased by ¥1,329 million and ¥1,592 million respectively in the nine months ended December 31,
2023.

(Dividends)
Dividends paid are as follows.
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)
Resolution

Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

Board of Directors
meeting held on
May 11, 2022

Common stock

17,822

14

Record date

Effective date

March 31, 2022

June 3, 2022

Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)
Resolution

Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

Board of Directors
meeting held on
May 12, 2023

Common stock

20,057

16

Record date

Effective date

March 31, 2023

June 6, 2023

(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
23

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

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 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. The transfer procedures were completed on April 3, 2023.
Revenue recorded in Endoscopic Solutions Business, Therapeutic Solutions Business and Others is stated asrevenue, as these segments are the units for which separate financial information is available and according towhich reporting is periodically conducted to decide how to allocate management resources and assessbusiness performance. Revenue is geographically disaggregated by customer location. Relationship between
the disaggregated revenue and revenue of each reportable segment is as follows:
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)(Millions of yen)
Endoscopic Solutions

Therapeutic Solutions

Japan
North America
EuropeChina
Asia and Oceania

48,291
146,234
96,995
59,11337,82934,13392,40259,80024,447
18,814

4,324
104
3,843
31
311

86,748
238,740
160,638
83,591
56,954

Others

10,5284,346

014,874

398,990

233,9428,613

641,545

Total

Others

Total

Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)(Millions of yen)
Endoscopic Solutions

Therapeutic Solutions

Japan
North America
EuropeChina
Asia and Oceania

50,973
151,324
101,897
59,47942,38834,162
97,74764,617
23,123
21,714

3,896
93
4,376
633
174

89,031
249,164
170,890
83,23564,276

Others13,2555,863

019,118419,316

247,226

9,172

675,714

Total

OthersTotal

The Endoscopic Solutions Business sells medical devices, including gastrointestinal endoscopes and surgicalendoscopes, as well as provides medical services such as lease and repair for these products, to customers
who are primarily medical institutions in Japan and overseas.
The Therapeutic Solution Business sells medical devices, including gastroenterology devices, urology
products, respiratory products, energy devices, ENT products, and gynecology products, to customers whoare primarily medical institutions in Japan and overseas.
Other businesses include R&D and exploratory activities for new businesses, in addition to sales ofbiomedical materials and orthopedic equipment.
Revenue from the sales of these products has been accounted for using the same accounting policy as thatapplied in the consolidated financial statements for the previous fiscal year.
(Other income and other expenses)(1) Other income
Major items of other income are as follows.
24

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)(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 ¥1,343 million in “Other income” due to adjustments to theoriginal acquisition consideration at the time of acquisition resulting from changes in the fair valueof the contingent consideration, which makes up part of the acquisition consideration of Medi-Tate
Ltd. Details of the changes in the fair value are described in “Business combinations (Contingent
consideration of Medi-Tate Ltd.)” (page 36).
Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)(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 thecollagen business and dental product sales businesses under “Other income.” Details are describedin (Cash flow information) (page 28).

(2) Other expenses
Major items of other expenses are as follows.
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)(Business restructuring expenses)
Olympus Corporation recorded ¥2,211 million for the cost related to promotion of the business
transformation plan “Transform Olympus” in “Other expenses.”Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)(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 ¥16,989 million
was incurred in “Other expenses” to ensure we strengthen our global quality management systemand to improve targeted areas 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 ¥50,830 million (¥2,315 million for loss on valuation of inventories; ¥41,314 million for
impairment loss on non-current assets (Note); ¥7,201 million for expenses related to the voluntary
recall of 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 (Impairment of nonfinancial assets) (page 20).
(Impairment losses)
Olympus Corporation recognized impairment losses of ¥1,357 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 time ofacquisition due to such factors as changes in the market environment, and recorded the losses in“Other expenses.”(Implementation of career support system for external opportunity)
Olympus Corporation recorded ¥2,036 million in “Other expenses” as expenses incurred in theprovision of special additional payment and re-employment support services under the career
support system for external opportunity implemented by Olympus Corporation and its groupcompanies.

25

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Per-share data)(1) Basic earnings per share and diluted earnings per share
Nine months ended December 31, 2022 Nine months ended December 31, 2023
(April 1, 2022 - December 31, 2022) (April 1, 2023 - December 31, 2023)
Basic earnings per share
Continuing operations¥82.96¥5.80

Discontinued operation¥2.16¥185.79

Basic earnings per share¥85.12¥191.59

Continuing operations¥82.88¥5.79

Discontinued operation¥2.16¥185.36

Diluted earnings per share¥85.04¥191.15

Diluted earnings per share

26

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(2) The basis for calculating basic earnings per share and diluted earnings per share
Nine months ended December 31,
2022(April 1, 2022 - December 31, 2022)(Millions of yen)
Nine months ended December 31,
2023(April 1, 2023 - December 31, 2023)

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

108,217

235,212––108,217

235,212

105,467
2,750
–

7,126
228,086–

108,217

235,212

105,467
2,750

7,126
228,086

The weighted average number of shares of common stock used to calculate basic earnings per share anddiluted earnings per share
The weighted average
number of shares ofcommon stock
Increase in number ofshares of common stock
Subscription rights toshares relating to stock
options
Common stock relating
to PSU
Common stock relating
to RSU
Average number of sharesof diluted common stockduring the period

1,271,290 thousand shares

1,227,698 thousand shares

392 thousand shares

294 thousand shares

479 thousand shares

1,897 thousand shares

395 thousand shares

615 thousand shares

1,272,556 thousand shares

1,230,504 thousand shares

27

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Cash flow information)
Nine months ended December 31, 2022
No items to report

Nine months ended December 31, 2023
(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 by funds advised by
Bain Capital, and completed the transfer procedures on April 3, 2023. As a result of this, Olympus
Corporation lost its control of Evident on the same day.
(ii) Assets and liabilities associated with the loss of control

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities

30,657
12,49743,154(iii) Cash flows associated with the loss of control(Millions of yen)AmountCash and cash equivalents received as consideration of the loss ofcontrol
Expenses related to transfer of businesses
Cash and cash equivalents of subsidiaries with the loss of control
Proceeds from the transfer of Scientific Solutions Business (Note)
Note:(Millions of yen)Amount118,936
50,119169,055

418,166(2,892)(36,183)
379,091

Proceeds from the transfer of Scientific Solutions Business are included in “Cash flows frominvesting activities” in the Condensed Quarterly Consolidated Statements of Cash Flows.

(iv) Gain or loss associated with the loss of control
Olympus Corporation recorded a gain of ¥349,030 million associated with the loss of control of Evident
under “Profit from discontinued operation” in the Condensed Quarterly Consolidated Statements ofProfit or Loss.

28

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(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 control of GML on the same day that the transfer of shares in accordancewith this share transfer agreement was completed.
(ii) Assets and liabilities associated with the loss of control

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities

688
17
705

(iii) Cash flows associated with the loss of control(Millions of yen)AmountCash and cash equivalents received as consideration of the loss ofcontrol
Cash and cash equivalents of subsidiaries with the loss of control
Proceeds from sale of subsidiaries (Note)
Note:(Millions of yen)Amount
2,226
1,285
3,511

4,429
(0)
4,429

Proceeds from sale of subsidiaries are included in “Cash flows from investing activities” in theCondensed Quarterly Consolidated Statements of Cash Flows.

(iv) Gain or loss associated with the loss of control
Olympus Corporation recorded a gain of ¥104 million associated with the loss of control of GML under“Other income” in the Condensed Quarterly Consolidated Statements of Profit or Loss.

29

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(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, executed a company split agreement with GC Corporation for the transfer of the collagenproducts development, manufacture and sales business and dental products sales business, which areincluded in the other businesses of the Olympus Group. The transfer of the businesses in accordancewith this agreement was completed on July 3, 2023. As a result, Olympus Corporation lost its control of
the collagen business and the dental product sales business on that date.
(ii) Assets and liabilities associated with the loss of control

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities

28
–
28

(iii) Cash flows associated with the loss of control(Millions of yen)AmountCash and cash equivalents received as consideration of the loss ofcontrol
Expenses related to transfer of businesses
Proceeds from the transfer of the collagen business and dental productsales businesses (Note)
Note:(Millions of yen)Amount
158
399
557

1,769
(113)
1,656

Proceeds from the transfer of the collagen business and dental product sales businesses areincluded in “Cash flows from investing activities” in the Condensed Quarterly Consolidated
Statements 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 under “Other income” in the Condensed Quarterly
Consolidated Statements of Profit or Loss.

30

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Financial instruments)
Fair value of financial instruments
Fair value hierarchy is categorized into the following three levels depending on the observability of
inputs used in the valuation technique for the measurement.
Level 1: Fair value measured at market prices (unadjusted) in active markets for identical assets or
liabilities
Level 2: Fair value measured using observable prices other than those categorized within level 1,
either directly or indirectly
Level 3: Fair value measured using a valuation technique which includes inputs that are not based on
observable market data
The Olympus Group recognizes transfers of financial instruments between the levels of the fair value
hierarchy as if they occurred at the end of each quarter of the fiscal year. There were no significant
financial instruments transferred between the levels for the fiscal year ended March 31, 2023 and thenine months ended December 31, 2023.
(1) Financial instruments measured at fair value
The methods for measuring major financial instruments measured at fair value are as follows.
(Other financial assets and other financial liabilities)
Listed shares are classified as level 1 and stated at market prices valued at the end of each fiscal
year.
Unlisted shares are classified as level 3 and stated at the value obtained by using valuation
techniques such as the comparable company analysis method.
Derivative assets and liabilities are classified as level 2. Currency derivatives are stated at the value
based on forward exchange rates, and interest-rate derivatives are stated at the value obtained basedon observable data such as market interest rates, credit risks, and the period up to maturity.
The contingent consideration for business combinations is classified as level 3 and stated at theestimates of future payability.
The fair value hierarchy of major financial instruments measured at fair value is as follows:
As of March 31, 2023
(Millions of yen)
Level 1
Financial assets
Financial assets measured at fair value
through profit or loss
Derivative assets
Equity securities and others
Financial assets measured at fair value
through other comprehensive income
Equity securities and others
Financial liabilities
Financial liabilities measured at fair value
through profit or loss
Derivative liabilities
Contingent consideration

31

Level 2

Level 3

Total

–
–

6,860
–

–
937

6,860
937

470

–

6,431

6,901

–
–

1,216
–

–
8,226

1,216
8,226

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

As of December 31, 2023
(Millions of yen)
Level 1
Financial assets
Financial assets measured at fair value
through profit or loss
Derivative assets
Equity securities and others
Financial assets measured at fair value
through other comprehensive income
Equity securities and others
Financial liabilities
Financial liabilities measured at fair value
through profit or loss
Derivative liabilities
Contingent consideration

Level 2––

Level 3

10,646
–

504

–
–

2,377
–

Total

–
718

10,646
718

7,152

7,656

–
7,716

2,377
7,716

The changes in financial assets categorized within level 3 were as follows:

Balance at April 1
Gains and losses (Note)
Profit or loss
Other comprehensive income
Purchases
Other(Millions of yen)
Nine months ended December Nine months ended December
31, 2022
31, 2023(April 1, 2022 - December 31, (April 1, 2023 - December 31,
2022)
2023)
3,895
7,368

Balance at December 31

4
61
301

81
27
3,583
63

136

7,649

7,870

Note:
Gains or losses recognized in profit or loss are mainly included in “Finance income” or “Finance costs” in thecondensed quarterly consolidated statements of profit or loss. Gains or losses recognized in other comprehensive
income are included in “Financial assets measured at fair value through other comprehensive income” in thecondensed quarterly consolidated statements of comprehensive income.
Total gains or losses recognized in profit or loss included a gain of ¥81 million and a loss of ¥43 million on
financial instruments held as of the nine months ended December 31, 2022 and 2023, respectively.

The changes in financial liabilities categorized within level 3 were as follows:

Balance at April 1
Business combinations, etc.
Settlement
Change in fair value
Other

Nine months ended December
31, 2022(April 1, 2022 - December 31,
2022)
6,100
4,083
(580)
(1,253)
293(Millions of yen)
Nine months ended December
31, 2023(April 1, 2023 - December 31,
2023)
8,226
–
(1,945)
811
624

8,643

7,716

Balance at December 31

32

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(2) 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.
(Bonds and borrowings)
Bonds and borrowings with fixed interest rates are stated at the value calculated at discounted rates
which would be applied to a similar issuance of bonds or similar new loans to generate future cash
flows.
Borrowings with variable interest rates are stated at their book value because their fair value isdeemed to be nearly equal to their book value, given that they are short-term borrowings reflecting
market interest rates, and their credit conditions have not significantly changed since the drawdown.
Short-term borrowings and commercial papers are stated at their book value since they are settled in
the short term and their fair value is nearly equal to their book value.
The carrying amount and fair value of major financial instruments measured at amortized cost were as
follows. Financial instruments whose carrying amounts approximate fair value are not included in thefollowing table.
(Millions of yen)

Financial assets
Lease receivables
Financial liabilities
Bonds
Borrowings

33

As of March 31, 2023

As of December 31, 2023

Carrying
amountCarrying
amountFair value

Fair value

65,00364,982

72,83072,608146,118
134,021141,280
134,287

150,41294,292

145,830
94,519Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(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 (Cash flow information)(page 28).
(2) Profit (loss) of discontinued operation
Profit (loss) of discontinued operations is as follows:(Millions of yen)

Nine months ended
December 31, 2022
(April 1, 2022 December 31, 2022)

Nine months ended
December 31, 2023
(April 1, 2023 December 31, 2023)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income (Note 1)
Other expenses (Note 2)

91,011
41,64649,36539,630
72
8,326

–
–
–
387
349,149
648

Operating profit
Finance income
Finance costs
Profit before tax
Income taxes (Note 3)
Profit from discontinued operation

1,481
562
109
1,934
(816)
2,750

348,114––348,114120,028
228,086

Notes: 1. Other income includes ¥349,030 million in the nine months ended December 31, 2023 for the gainon the transfer of Scientific Solutions Business.
2. Other expenses include ¥8,165 million and ¥177 million in the nine months ended December 31,
2022 and the nine months ended December 31, 2023, respectively, related to the spin-off of the
Scientific Solutions Business and the strengthening of its management systems.
3. Income taxes of ¥120,028 million in the nine months ended December 31, 2023 are tax expenses
related to the transfer of Scientific Solutions Business.
(3) Cash flows of discontinued operation
Cash flows of discontinued operation are as follows:(Millions of yen)

Nine months ended
December 31, 2022
(April 1, 2022 December 31, 2022)

Cash flows of discontinued operation

Nine months ended
December 31, 2023
(April 1, 2023 December 31, 2023)

Net cash used in operating activities(13,651)(57,728)
Net cash provided by (used in) investing activities (Note)(8,212)431,091
Net cash used in financing activities(1,366)–Note:
Net cash provided by (used in) investing activities in the nine months ended December 31, 2023
includes proceeds from the transfer of the Scientific Solutions Business of ¥379,091 million andcollection of loans receivable from Evident Corporation of ¥52,000 million.

34

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Business combinations)
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)(Acquisition of Odin Medical Ltd.)(1) Outline of business combination
1) Name and description of acquired business
Name of acquired businessOdin Medical Ltd. (hereinafter “Odin”)

Description of business

Development of cloud AI-enabled applications forendoscopes

2) 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 in real 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 healthcare workers to provide better medical care to patients.
3) Acquired ratio of holding capital with voting rights
100%4) Acquisition date
December 19, 2022
5) 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 andadministrative expenses.”(3) Fair value of consideration paid, assets acquired, and liabilities assumed as of the acquisition date(Millions of yen)AmountFair value of consideration paid
CashContingent consideration
Total

3,982
4,095
8,077

Fair value of assets acquired and liabilities assumed
Cash and cash equivalents
Other current assets
Property, plant and equipment
Intangible assets
Trade and other payables
Other current liabilities
Deferred tax liabilities
Other non-current liabilities
Fair value of assets acquired and liabilities assumed, net
Goodwill
Total

148
1
3
3,955
(28)
(99)
(986)
(74)
2,920
5,157
8,077

35

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

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 third quarter ended December 31, 2023, and the values of the assets and liabilities on theacquisition date have 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 balanceof intangible assets of ¥3,955 million is mostly comprised of ¥3,170 million in technology-related
assets related to products of Odin, and ¥774 million in intangible assets based on the contract, which
are measured based on future sales growth rate, diminishing value rate, discount rate and otherassumptions. The estimated useful lives of technology-related 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 fordevelopment made by Odin, and the payment is calculated by taking into consideration the possibilityof obtaining the approval 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 onchanges in the time value of money as “Finance costs” and the part based on changes other than thetime value of money 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 condensed quarterly consolidated statements of profit
or loss due to such information is not material.
Furthermore, the profit or loss information under the assumption that the said business combination
was conducted at the beginning of the fiscal year under review has not been reviewed by an audit
corporation’s quarterly review.
(Contingent consideration of Medi-Tate Ltd.)With regard to the contingent consideration recognized from the acquisition of Medi-Tate Ltd. carriedout in the fiscal year ended March 31, 2022, due to the delay from the initial plan in obtaining approvalas part of development activities, we have lowered the fair value from the balance of ¥2,699 million at
the beginning of the fiscal year to ¥1,953 million in the nine months ended December 31, 2022. Of the¥746 million difference, the amount of impact of changes in the time value of money of ¥341 million(Note 1) was recorded as “Finance costs” in the condensed quarterly consolidated statements of profit
or loss, the amount of impact of ¥1,343 million due to the review of the fair value itself (Note 2) wasrecorded as “Other income” in the condensed quarterly consolidated statements of profit or loss, andthe amount of impact of exchange rate fluctuations of ¥255 million was recorded as “Exchange
differences on translation of foreign operations” in the condensed quarterly consolidated statements ofcomprehensive 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 amount increases
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 theconditions for the milestone has become difficult as a result of the delay from the initial plan.

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Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)(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 ending March 31, 2024. As a result, we have retrospectively
revised the figures at the end of the fiscal year ended March 31, 2023 in the consolidated statements offinancial position.
(Acquisition of Odin Medical Ltd.)
Odin Medical Ltd. became a consolidated subsidiary of Olympus Corporation on December 19, 2022, due tothe acquisition of shares for cash consideration.
In the fiscal year ending 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
ending March 31, 2024, initial measurement of assets acquired, liabilities assumed and goodwill has been
finalized.
(Millions of yen)
Provisional fair
Subsequent
Revised fairvalue as of Marchrevisionvalue
31, 2023
Fair value of consideration paid
Cash

3,982

–

3,982

Contingent consideration

4,095

–

4,095

Total

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
Fair value of assets acquired and liabilities
assumed, net
Goodwill

(74)

–

(74)

1,779

1,141

2,920

6,298

(1,141)

5,157

Total

8,077

–

8,077

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 millionand ¥393 million, respectively, and a decrease in goodwill of ¥1,181 million in the consolidated statements offinancial position for the fiscal year ended March 31, 2023

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Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

(Contingent liabilities)
There are no significant changes from the items provided in the securities report for the previous fiscal year.
(Subsequent events)(Business combination through acquisition)(1) Outline of business combination
1) Name and description of acquired business
Name of acquired businessTaewoong Medical Co., Ltd. (hereinafter “Taewoong
Medical”)

Description of businessR&D and manufacturing of non-vascular metallic stents

2) Primary reason for business combination
Taewoong Medical, a leading manufacturer of GI stents, offers a variety of medical devices
including therapeutic metallic stents designed for biliary tract, esophagus, colon, and duodenum
treatments. The addition of Taewoong Medical’s medical devices to its product portfolio will
enable Olympus Corporation to provide more comprehensive and varied solutions in GI,
contributing to improved patient outcomes.
3) Acquired ratio of holding capital with voting rights
99.6%
4) Acquisition date
January 24, 2024
5) Acquisition method to govern the acquired company
Cash consideration for the acquisition of shares(2) Consideration for acquisition
Consideration for acquisition based on the agreement is USD370 million. Under the agreement, theprice has not been finalized and is subject to price adjustment.
Because the fair value measurement of consideration paid, assets acquired and liabilities assumed as ofthe date of the business combination has not been completed as of the approval date of the Condensed
Consolidated Financial Statements, fair value as of the acquisition date and major breakdowns ofconsideration paid, assets acquired, and liabilities assumed, goodwill, acquisition-related expenses, anddetailed information related to the impacts on the Group have not been disclosed.
(Share repurchase)
At a meeting of the Board of Directors held on November 9, 2023, Olympus Corporation resolved therepurchase of its own shares and the specific means of repurchase as provided for under Article 459 Section
1 of the Companies Act and Article 32 of Olympus Corporation’s Articles of Incorporation, and carried out
the repurchase of its own shares as follows:(1) Details of the resolution passed at the meeting of the Board of Directors held on November 9, 2023:
1. Class of shares:

Common stock of Olympus Corporation

2. Total number of shares to be repurchased:

53,000,000 shares (maximum)

3. Total amount of shares to be repurchased:¥80,000 million (maximum)

4. Repurchase period:

November 10, 2023 to March 31, 2024

5. Repurchase method:

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Market purchase based on a discretionary trading

Olympus Corporation (7733) Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2024

contract on the Tokyo Stock Exchange(2) Treasury shares repurchased based on the above resolution by the Board of Directors
1. Total number of shares repurchased:

6,725,900 shares

2. Total amount of shares repurchased:¥14,549 million

3. Repurchase period:

January 1, 2024 to January 31, 2024 (based ondelivery date)

Details regarding the repurchase of its own shares in the nine months ended December 31, 2023 are as
described in (Equity and other equity items) (page 21).

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