December 25, 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 Recording Other Income (in the fiscal year ending March 2020)by Transfer of Equity Interests of Consolidated Subsidiary (Sub-subsidiary)
Olympus Corporation (the “Company”) announced that it has decided to execute a framework agreement concerningtransfer of all the equity interests of Olympus (Shenzhen) Industrial Ltd. (“OSZ”), a consolidated subsidiary of theCompany in Shenzhen, owned by Olympus (China) Co., Ltd., another consolidated subsidiary of the Company, toShenzhen YL Technology (“YL”) at today’s Board of Directors meeting. The Company hereby announces as follows since,
as a result of the Transfer, other income is expected to be recorded in the fiscal year ending March 2020.
1.

Reason for the Transfer
As announced in the “Notice Concerning the Discontinued Operations of Consolidated Subsidiary (ChineseProduction Subsidiary for the Imaging Business)” dated May 7,2018, the Company, as of the same date, decided todiscontinue operations of OSZ and concentrate the manufacturing of products relating to the digital camera business
into Olympus Vietnam Co., Ltd.
Thereafter, the Company has been considering the handling of OSZ and has decided to transfer all OSZ’s equity
interests to YL.

2.

Overview of the Transfer（1）

Overview of the Consolidated Subsidiary Subject to the Transfer

(1)

Name

(2)

Address(3)

Title and Name of representative

CEO Toru Komatsu(4)

Description of business

Manufacture of digital cameras and lens units for digital cameras (Note1)(5)Capital

US$ 70,100,000(6)Date of incorporation

December 4, 1991(7)(8)

Main shareholders andshareholding ratios

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

Olympus China Co.,Ltd. (Note2)

100.00%Relationship between the Company and this subsidiary
Capital relationshipThis subsidiary is a consolidated subsidiary with 100% indirect investment byThe Company.

Personnel relationship

Employees of The Company are appointed as directors of this subsidiary.

Transactional relationship

The Company is in a sales-purchasing relationship with this subsidiary.

Status as a related party(9)Olympus (Shenzhen) Industrial Ltd.

This subsidiary is a consolidated subsidiary of The Company and is a related
party of The Company.

Operating results and financial standing over the last three years (in HK$ 1000s) (Note 3)

Fiscal Year

Year EndedYear EndedYear Ended

December 2015

December 2016

December 20171

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$)
Net sales
Operation income
Current income belonging
to owners of the parent company
Current income per share (HK$)(Note1) As of today, OSZ is not under operation.

(Note2) Olympus China Co., Ltd. is a consolidated subsidiary 100% owned by the Company.
(Note3) For reference: HK$ 1 = ¥14.51 (exchange rate as of the end of November, 2018).
（2）

Overview of the Transferee

(1)

Name

Shenzhen YL Technology Co., Ltd.

(2)

Address

Room 1505, No. 20 Sci. and Tech. South 12th Rd.,Nanshan District, Shenzhen(3)

Title and Name of representative

General manager Zeng Jianuo(4)

Description of business(5)

Capital

RMB 110,000 thousand (Note 1)(6)

Date of incorporation

November 27, 2007

(7)
(8)

Main shareholders andshareholding ratios

Development and sale of software technology, consulting of software
technology, and integration of computer system

Qushui GL Venture Capital Co., Ltd.

100.00%Relationship between the Company and Transferee
Capital relationship

Not Applicable.

Personnel relationship

Not Applicable.

Transactional relationship

Not Applicable.

Status as a related party

Transferee is not a related party of the Company.

(Note1) For reference: RMB1 = ¥16.36 (exchange rate as of the end of November, 2018).
（3）

Status of the Amount of Contribution for the Transfer, the Transfer Amount, the amount of Contribution before
and after the Transfer

(1)
(2)
(3)
(4)

Amount of Contribution Beforethe Transfer
Amount of Contribution for theTransfer
Transfer AmountAmount of Contribution After theTransfer

US$ 70,100,000 (Note 1)
US$ 70,100,000 (Note 1)
RMB 1,825 million
US$ 0(Note1) For reference: US$1 = ¥113.47 (exchange rate as of the end of November, 2018).
（4）

Schedule

Date of Execution of Basic Agreement

December 25, 2018 (today)

Date of Transfer

To be decided (prospected to occur between April 2019 and August 2019)

23.

Future Outlook
Consideration for this transfer is about 30 billion yen, and a certain amount of other income is expected to be recordedin the fiscal year ending March 2020. Current figures are under scrutiny, and we will promptly notice as soon asadditional items to be disclosed have arisen.
Endth(For your reference) Financial forecast (as of 6 of November 2018) and actual results for FY ended March 31, 2018
（Yen in Millions）
Revenue

Operating Profit

Profit before tax

Profit attributableto owners of parent

Current Forecast(FY ending March 2019)
Actual Results(FY ended March 2018)

790,000

44,00039,00026,000786,497

81,02976,66557,0923