Our Strategy

Chapter 02

Our New Company Strategy

Company Strategy

FY2024-FY2026 Financial GuidanceGuiding Principles

Despite continuing drastic changes in the external environment, we aim to sustain an annual revenue growth rate of around 5% andmaintain an operating margin of around 20%. EPS CAGR is targeted at around 8%, above revenue growth, with productivity andefficiency improvements to control rising costs. Over the next three years, we plan to resolve QARA issues and actively invest forsustainable growth. At the same time, we will take steps to enhance efficiency, including the optimization of manufacturing plants
through cost-cutting activities, and globalizing our organization and operations.

Olympus has decided “Patient safety and sustainability,” “Innovation for growth,” and “Productivity” as the three priorities in orderto achieve “Making people’s lives healthier, safer and more fulfilling” as stated in Our Purpose. In addition, we will accelerate
investment in strategic value pools that drive long-term sustainable growth: Business and Global Expansion, Strategic M&A, Care
Pathway Enhancement, and Intelligent Endoscopy Ecosystem. We will continue to invest in patient safety and our business’
growth, which are fundamental to our organization’s long-term sustainability.

Patient safety
andsustainability

1Resolve pending commitments to the FDA,
prove confidence with regulators

Initiatives for Patient Safety
and Growth (P. 16)

Competitive Growth Along with Steady Value Creation

Revenue Growth*1~5 %2 Lead in organization health and ESG

ESG Strategy (P. 38)

Therapeutic Solutions Division

5%TSDESDEPS Growth*2~ 20 %~8 %*1 Constant currency basis*2 Adjusted for extraordinary Items
Exclude “Other income / expenses”
No adjustment will be made for the impact of exchange rate
fluctuations; actual exchange rate will be used

CAGR from FY2023

Innovation forgrowth

the Olympus brand,
3 Strengthen
elevate the experience of our customers

4Productivity

Grow our business, through purposeful
innovation and acquisitions

Capital Allocation
Innovation (P. 58)
Strategic M&A (P. 66)

a high performing organization focused
5 Build
on patient safety and product quality

6 Ensure simplicity and operational efficiency

Regarding capital allocation, we are prioritizing business investments. Under our new company strategy, we will continue to proceedwith business investments and M&A, focusing on disease states where Olympus can have market-leading impact and contribute toelevating the standard of care. In addition to investments for business growth, we will also invest in sustainable growth, such asstrengthening QARA functions. Through appropriate financial management, we will see a stable and gradual dividend increase, andconsider flexible buyback of company shares based on investment opportunities and cash/financial conditions.

BusinessInvestmentFY2021—FY2023

R&D

Strategic Value Pools that Drive Long-term Sustainable Growth
M&A

ShareholderReturns

36

Olympus Integrated Report 2023

Strategic M&A

Care Pathway
Enhancement

Intelligent
Endoscopy
Ecosystem

Investment for profitable, organic growth
Strategic investment for growth opportunities

Prioritize

Activities to Improve
Productivity (P. 77)

CAPEX

Business andGlobal Expansion> 5%

CAGR from FY2023

Operating Margin*2
Evolving Our Corporate
Culture (P. 72)

Endoscopic Solutions Division¥ 223 . 0 billion
FY2021—FY2023 total

FY2024—FY2026 Forecasts
Ratio to revenue from8% in FY2023 to¥ 227. 0 billion

8. 5 %in FY2026

Maintain similar level

FY2021—FY2023 total
Acquired 7 companies for

Focus on tuck-in M&A¥ 135. 0 billion

Dividends

Stable and gradual dividend increase in line withmedium- to long-term business performance

Buyback

Flexible buyback of company shares based oninvestment opportunities and cash/financial conditions

FY2021

FY2022

FY2023

FY2024 Forecast

FY2024—FY2026 Forecasts

Dividends¥15 . 4 billion¥17. 8 billion¥ 20 .1 billion¥ 22 .6 billion

Over ¥¥12.0 per share¥14.0 per share¥16.0 per share¥18.0 per share

FY2024–FY2026 total

Buyback—¥ 30. 0 billion¥ 50. 0 billion

67. 8 billion

Share Buybacks andimprove capitalefficiency

Over¥ 100. 0 billion

37