Transform Olympus
Transforming intoa Truly Global Medical Technology Company
Olympus Corporation
January 11, 2019

Disclaimers


The financial forecasts and other material in this document are based on judgements and assumptions
derived from currently available information. Actual results may differ significantly from targets, beingsubject to change due to factors such as the uncertainties implicit in these judgements and assumptions anddue to future changes in business operations and circumstances inside and outside the company.

Furthermore, this information is subject to change without notice. Accordingly, use of this information andthis document should be at the discretion of the user and done with reference to information obtained byother means.

This document contains information about products that have yet to obtain approval under pharmaceuticaland medical device laws (including products under development). This information is not intended for
promotional or medical advice use. Rather, it is provided to give examples of technology development by
Olympus and no guarantees are made about the future sale of such products.

1

Olympus accepts no responsibility for any losses that arise from use of the information in this document.

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No data copy / No data transfer permittedOur Path So Far, and the Future Before Us
Sustainable and Continuous Growth from our 100 th Anniversary Onwards
Mid-term vision

Become a leading global
Strengthen Foundations and player in the medical field

Develop Strong Business Portfolio

OUR
CORE
VALUES

Regain trust,strengthen corporate structure

2016

2012
Reconstruction Phase2019(100th anniversary)

Sustainable Growth Phase

Purpose: Making People’s Lives Healthier, Safer andMore Fulfilling2

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2xxx

“Transform Olympus” - Transformation Plan to Become a Truly Global Company
Key Issues in Developing into aTruly Global Company“Transform Olympus”• Efficient and agile decision
making• Centralized risk management

Shift to Centralized Global GroupManagement• Optimal allocation of function
and talent globally

Globally Integrate HR
Management• Improve business speed andefficiency in line with global
medical technology peers• Sustainable growth oftherapeutics device• Improve operating profit
margin and capital efficiency“Transform Medical”
Optimize and Simplify Medical
Device BusinessPrioritize Cost Containment andCapital Efficiency

Expected Outcomes• New Org. Chart and ExCom• Clear Lines of Accountability• Rapid Execution• High Performance Culture• More Productive Team• BUs aligned by business model• New Products Faster• Quality Patient Outcomes• Continuous Profit Growth• Greater Capacity to Invest• Higher Shareholder Returns• Faster Management Action• Governance structure in linewith global nature of business• Diversify board of directors

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Migrate to Three Committee Board
Structure with Diversified Board ofDirectors• Board Aligned With StrategicGoals• Board Focused on Strategy andLong-Term AccountabilityShift to Integrated Global Group Management
Agile Decision-Making and Centralized Risk Management with Strengthened Leadership through Global
Management Structure and Five Executive Officers
Effective as of April 1, 20194TitleName

Chief Executive Officer(CEO)Yasuo Takeuchi

Chief Operating Officer(COO)

Akihiro Taguchi

Chief Technology Officer(CTO)

Haruo Ogawa

Chief Finance Officer(CFO)

Yasushi Sakai

Chief Administrative
Officer (CAO)

Stefan Kaufmann

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Globally Integrate HR Management to Create High Performance Culture
Establish Structure to Enable Optimal Talent Allocation Based on Globally Uniform Business Management
Talent Management Policy
1 Train Talent

2Appoint and Assign Talent
R&D34• Early selection and appointment• Talent management by function; greater functional specialization

Mfg

Sales

Secure Talent• Appointing and assigning talent regardless of age and nationality• Establishing a talent information system• Securing necessary talent at a global level• Standardization of HR system

HR Governance• Direct reporting lines and governance for all key positions globally5

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“Transform Medical” - Optimize and Simplify Medical Device BusinessInitiative to Achieve Sustainable Business Growth; Enable Speedy and Lean Business Management
Optimize Medical Business Potential with Respect to More Timely and Effective Product Offerings
Current Business Units
Gastrointestinal andRespiratory

General Surgery

April 2019 onwards

EndoscopicSolutions
Division

Key Features

Products• Global Division Headquarters inJapan• Gastrointestinal (GI),
Respiratory and Surgicalendoscopy capital products• Improve existing infrastructure
and processes• Software• Reprocessing• Repair service• Systems Integration

Urology / Gynecology

Ear, Nose, and Throat(ENT)

Medical Service

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TherapeuticSolutions
Division• Global Division Headquarters inUS

• EndoTherapy (single-usetherapeutic) devices for GIand Respiratory fields• Global decision making from US,
the largest therapeutic device
market with better access to the
medical industry cluster• Energy and other surgicalsingle-use devices• Urology, Gynecology and ENT
products

Prioritize Cost Containment and Capital Efficiency for Entire Olympus Group
Improve Operating Profit Margin and Return on Capital in line with Global MedTech Industry PeersA. Improve Operating Profit Margin
Initiatives••

B. Improve Capital Efficiency
Initiatives

Freeze FY2020 SG&A, including R&D at FY2018level

Working groups to kickoff from January 2019

Covering FY2020 (April 2019 to March 2020)

 FY2019 will remain at current guidance level
Develop longer-term cost savings program for
FY2020 onward Will be finalized and announced in first half of•

Review capital expenditure and working
capital levels across business units•

Sustainably improve free cash flow available
for strategic M&A and shareholder return

FY2020Enhance Shareholder Return and Become a Leading Global MedTech Company
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No data copy / No data transfer permittedMigrate to “Company with Three Committees” Board Structure
Align Olympus’ Board Structure with the Global Nature of its Business and Provide Enhanced
Oversight and Support of Management

Drive efficiency in decision-making, enhance corporate
governance and improve transparency
Simultaneously improve the board’s focus on supervising
management’s implementation of strategy and best practices
Increase management’s agility, and improve the ability to attract
global executives

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Diversify Board of Directors
Commitment to Diversifying Board By Nominating Three New Directors with Highly Relevant Global
Backgrounds
Seek Shareholder Approval at 2019 AGM

Sustainable Growth in
MedTech Industry

Accelerate
Shareholder
Value Creation
and Benefit All
Stakeholders

Capital Efficiency& Optimization ofBusiness Model9

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D. Robert Hale
- A Partner at ValueAct
Capital Management L.P.
- Brings institutional andpersonal experience incorporate transformationand medical technologyindustry
Other New Directors- Executives with relevant
experience at leadingglobal MedTechcompanies- Help management refine
and implement strategic
goals and best practices

To Continue Development as a Truly Global MedTech Company“Transform Olympus”
Shift to Integrated
Global Group Management
Globally Integrate HR Management“Transform Medical”
Optimize and Simplify
Medical Device BusinessPrioritize Cost Containment andCapital Efficiency
Migrate to Three Committee Board
Structure with Diversified Board ofDirectors

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