May 7, 2018
News Release
Company: Olympus Corporation
Representative Director, President: Hiroyuki Sasa
(Code: 7733, First Section, Tokyo Stock Exchange)
Contact: Takaaki Sakurai, General Manager, Public Relations and IR Office

Notice Concerning the Discontinued Operations of Consolidated Subsidiary(Chinese Production Subsidiary for the Imaging Business)
Olympus Corporation announced that it has decided to discontinue operations at Olympus (Shenzhen)
Industrial Ltd. (hereinafter “OSZ”), its subsidiary located in Shenzhen, China, at today’s Board of Directors
meeting.
1.

Reason for the discontinued Operations
Olympus Corporation established OSZ in Shenzhen, China, in December 1991, for the manufacture ofproducts relating to the digital camera business. However, the digital camera market suffered a rapid
contraction due to the rise of smartphones, leading to a marked decline in OSZ's operating rate. OSZ'sequipment had also deteriorated after 26 years of operation. It would be extremely difficult to maintain thecompetitiveness of OSZ.
Up until now Olympus Corporation manufactured products relating to the digital camera business at OSZ
and at Olympus Vietnam Co., Ltd. (hereinafter "Olympus Vietnam") located in Dong Nai Province inVietnam, but in light of the above-mentioned facts, we have decided to discontinue operations of OSZ andconcentrate this production at Olympus Vietnam. This will enhance our production efficiency andprofitability, enhancing the global competitiveness of our digital camera business.

2.

Profile of Olympus (Shenzhen) Industrial Ltd.
(1) Name
Olympus (Shenzhen) Industrial Ltd.
(2) Address

No.1, Kejibei 2nd Road., North Hi-Tech Industrial Park, Nanshan District,
Shenzhen, Guangdong Province, 518057 P.R.C.

(3) Title and name of

CEO Toru Komatsu

representative(4) Description of business

Manufacture of digital cameras and lens units for digital cameras(5) Number of employees

1,774 (As of the end of March, 2018)(6) Capital

US$ 70,100,000(7) Date established

December 4, 1991(8) Main shareholders andOlympus China Co.,Ltd.1

shareholding ratios(9) Relationship with

CapitalThis subsidiary is a consolidated subsidiary with 100%

Olympus Corporation

relationshipindirect investment by Olympus Corporation.

Personnel

Employees of Olympus Corporation are appointed as

relationshipdirectors of this company.

Transactional

Olympus Corporation is in a sales-purchasing relationshiprelationshipwith the subsidiary.

Status as a

The subsidiary is a consolidated subsidiary of Olympus

related party

Corporation and is a related party of Olympus Corporation.

(10) Operating results and financial standing over the last three years (in HK$ 1000s)2
Fiscal year

Year EndedYear EndedYear Ended

December 2015

December 2016

December 2017

Equity total

891,569

935,399

895,938

Assets total

1,045,776

1,106,323

1,093,016

1.63

1.71

1.64

1,289,195

1,119,470

980,739

28,04981,22632,65920,80662,555

14,785

0.04

0.11

0.03

Per share (HK$)
Net sales
Operating income
Current income belonging to ownersof the parent company
Current income per share (HK$)

1. Olympus China Co.,Ltd. is a consolidated subsidiary 100% owned by Olympus Corporation.
2. For reference: HK$ 1 = ¥13.94 (exchange rate as of the end of April, 2018).

3.

Date for the discontinued operations
May 7, 2018. OSZ's operations will cease on the same day following the resolution by the Olympus
Corporation board of directors.
4.

Effect on business results
The discontinued operations of this subsidiary are expected to incur temporary expenses. We are currently
assessing the impact this will have on the consolidated results of Olympus Corporation, and will give further
notice on May 11 at the time of the financial results announcement for the fiscal year ended March 2018.