• I’d like to take it from here and explain the introduction strategies of EVIS X1 to themarkets.

•First, I’d like to cover introduction in different regions.

•

As some of you may know, we issued a press release in Europe, Australia, Hong Kong,and India on April 23, 2020 and started sales.

•

We started sales in Japan on July 3, 2020.

• Let me first introduce the global strategies for EVIS X1.

• Our goal for EVIS X1 is to support further improvements of endoscopic services at eachstep of the endoscopic screening, from lesion detection to treatment.
• As shown in the figure at the bottom of the slide, the endoscopy medical services isdivided into steps, from lesion detection to treatment.
• Our plan is to provide innovative technologies that are appropriate for each step and tocontinue to be the best partner for our customers by providing solutions that fulfill theirneeds.
• As I mentioned earlier, the one in the name “EVIS X1” reflects this idea.
• So how will we approach those goals?

• We are planning to develop two strategies.
• The first is to develop a rich product portfolio based on a unified global platform.
• And the second is to create clinical values with the new features of EVIS X1.
• Let’s look at each strategy in detail. First, our first strategy.

• As Kura mentioned earlier, we will provide a wide variety of scopes by compatibility withthe scopes developed for existing endoscopy systems in addition to the special scopesfor EVIS X1, by best utilizing the globally unified platform of EVIS X1.
• This will make it possible for physicians to use scopes that were not previously available
in their regions.

• Now for some examples.
• The PowerSpiral endoscope shown in the video on the right was available with theEXERA series, but not with the LUCERA series.
• On the other hand, the ultra-high magnifying endoscope, Endocyto shown in the video on
the left was available with the LUCERA series, but not with the EXERA series.
• This is because we selected the products to introduce to meet various local needs.
• To meet the diverse needs of endoscopists in recent years, we will develop a rich productportfolio based on a globally unified platform.

• And the second strategy is to create clinical values with new features of EVIS X1.
• This is a key concept that Olympus has also worked on previously, and we have matchedeach function to each step from previous products.
• We will also strengthen our activities to further enhance the clinical usefulness of TXI,EDOF, and RDI, which are the representative new functions of X1, by matching them tothe steps of detection, characterization, staging, and treatment.
• Specifically, we will use TXI for detection and the combination of EDOF and NBI forcharacterization and staging, as the gold standard procedure to contribute to endoscopy
medical services around the world.
• Given the high expectations for these medical values, we will work proactively to establish
evidence.

• Let’s revisit the aims of the magnifying endoscope portfolio.
• The EDOF scope aims to become the global standard for magnifying endoscopes, with ahigh priority on operability and versatility shown along the horizontal axis.
• In the meantime, our challenge lies not only in the spread of procedures based on thisstandard, but also on the vertical axis.
• We will continue to work toward the realization of more detailed magnifying endoscopic
imaging by improving magnifying performance itself.
• In other words, we will continue to pursue the creation of new endoscopic diagnostics
while aiming to become the standard for magnifying endoscopy.
• I believe that continuing to pursue these two goals is a major key success factor inOlympus receiving the support of many endoscopists.

• Now that I’ve explained the development strategies on a global level, how will each region
develop according to these guidelines?
• And now I’d like to move on to the development of the Japanese market.

• This table shows the products to be introduced in Japan on July 3, though the sales ofsome of the products did start earlier.
• GIF-1200N is an ultra-thin endoscope for the upper gastrointestinal tract that is inincreasing demand in Japan.
• The sales of this product started on March 6.
• GIF-EZ1500 and CF-EZ1500 are endoscopes with the features of the EDOF function. We
will strengthen the sales activities of these endoscopes as our core products.

• In Japan, the number of facilities offering endoscopic services is approximately 6,000
hospitals, 21,000 clinics, and 27,000 facilities in total.
• Because of the characteristics of the Japanese market, we assume that there are few
facilities that are planning to start to provide new endoscopic services.
• Therefore, we will propose replacement of endoscopes that are five years old or more atfacilities that use endoscopes.
• According to our survey, there are currently approximately 33,000 endoscopes inoperation in Japan, of which approximately 70% are assumed to have been used formore than five years.
• We will start sales promotion mainly these facilities.

• As for products and functions to provide to each segment, we would like to provide EDOF
scopes to all users first.
• Using this scope with the conventional NBI will support the diagnostic procedures simpler.

• We will introduce RDI to EDOF for facilities that focus on treatment.
• I will introduce the ultra-thin endoscope for TXI for facilities that actively perform
endoscopic screening.
• I will be covering each item.

• As I mentioned earlier, we would like to provide EDOF to all facilities. The figures shownin the table on the left are the market penetration rates of our magnifying endoscopes.
• At hospitals, magnifying endoscopes are owned by approximately 40% of users for theupper and lower gastrointestinal tract.
• At clinics, magnifying endoscopes are owned by approximately 5% of users for the uppergastrointestinal tract and by approximately 8% for the lower gastrointestinal tract, so they
have yet to be spread.
• As shown in the pie chart on the right, despite the usefulness of magnifying endoscopes,
our survey indicates that further improvements are being sought in regard to simplifying
the procedures.
• With the advent of the new EDOF scope, we believe that this concern has been solved
and we are confident that the new product has high potential to become the new standard.

• For the facilities that actively provide endoscopic treatment, see the chart on the right.
• This chart shows changes in the number of ESD cases, which is a procedure developedin Japan to remove the mucosa of a lesion.
• The number of cases is increasing year by year.
• RDI is expected to support this procedure, and we believe that RDI will be used by many
endoscopists in the near future as an indispensable function for endoscopic treatment.

• In addition, at facilities that actively provide endoscopic screening, we would like tosupport improvement in the observation performance of suspicious areas by using theTXI technology in addition to this ultra-thin endoscope developed to reduce the pain forJapan, where there are many cases of gastric cancer.

• In this way, we intend to provide products and functions suitable for customers withdifferent needs to increase the need for replacement with EVIS X1.

• Finally, I would like to say that in order to make the EVIS X1 with these new features
available to many customers, Olympus has been offering special sales plans for user
hospitals and clinics.
• For example, there is a plan that does not require an initial investment that allows thehospital to make payments based on value per procedure.
• We also offer lease programs with generous insurance for clinics.
• As well as products, we offer satisfactory sales programs to encourage continued
customer use.

• So I have given a brief introduction of the global market development strategies and theJapanese market development.
• I realize that Olympus’ strength is advanced endoscopic technologies that lead the world,such as EVIS X1, but I would also like to stress that we also have great strengths in ourrobust global sales/service network.
• In order to deliver the EVIS X1 to as many physicians around the world as we can, we will
strive to create a new era of endoscope healthcare by working closely with local staff
around the world.