March 30, 2016
News Release
Company: Olympus Corporation
Representative Director, President: Hiroyuki Sasa
(Code: 7733, First Section, Tokyo Stock Exchange)
Contact: Tetsuo Hyakutake, General Manager, Public Relations and IR Office
TEL: 03-3340-2111 (receptionist)

Notice of Formulation of 2016 Corporate Strategic Plan (5-Year Medium-Term
Management Plan)-- Strengthening the foundations of the business and developing an aggressive business portfolio
for sustainable growth beyond the 100th anniversary -Olympus Corporation hereby announces that it has formulated its 2016 Corporate Strategic Plan
(16CSP), a new five-year, medium-term management plan slated to begin in April 2016. Under thisplan, Olympus will work to improve corporate value by strengthening the foundations of the businessand developing an aggressive business portfolio for sustainable growth beyond its 100th anniversary in
2019.
1. Basic Policies
“Business to Specialist” Company
Olympus defines a “Business to Specialist” Company as a company that can accurately
understand the demands and unmet needs of highly specialized expert and aspirational customers(specialist) and respond by proposing and providing compelling solutions in a timely manner.
Over the years, Olympus has continued to exercise its strengths as a “Business to Specialist”
Company to grow by earning the trust of customers.
Going forward, we will continue to utilize these strengths as we seek to become an even-morevaluable partner to our customers by calling upon our innovative thinking, expertise in advancing
technology, operational excellence, and unsurpassed integrity.



One Olympus
We will maximize the performance of the entire Olympus Group by sharing values and strategies
and making full use of management resources on a global and Groupwide basis.
Driven by this commitment, Olympus will strive to meet or exceed the expectations of all of its
stakeholders through sustainable growth and act as a good corporate citizen, thereby contributing
to society by making the lives of people around the world healthier, safer, and more fulfilling.

2. Management Goals
We will work to secure an appropriate level of financial soundness and then target balanced
improvements in profitability and business growth to consistently realize return on equity (ROE) of
15% and to double earnings per share (EPS) over the five-year period of 16CSP.
Over the past four years, Olympus has successfully achieved substantial improvements in ROE
while raising equity capital. Under 16CSP, we will strive to secure an appropriate level offinancial soundness by increasing the equity ratio while continuing to practice management thatpays heed to shareholder expectations by emphasizing capital efficiency. We therefore aim to
maintain ROE at the 15% level through balanced improvements in profitability and businessgrowth realized by increasing the operating margin and achieving a sharp rise in earnings before
interest, taxes, depreciation, and amortization (EBITDA). This process is anticipated to lead to adoubling of EPS over the five-year period of the plan.

- 1 -Concrete management targets are as follows.

Capital efficiency
ROE: 15%
We will work to secure an appropriate level of financial soundness and then target balanced
improvements in profitability and business growth to consistently realize ROE around the level of
15% (ROE of 14% forecast for fiscal 2016).
Profitability
Operating margin: 15%
While boosting profitability in the mainstay Medical Business, we will endeavor to realize further
profitability improvements by decreasing SG&A expenses through increased development
efficiency and streamlined back-office work and processes (operating margin of 12% forecast for
fiscal 2016).
Business growth
EBITDA: Double-digit average annual growth rate during 16CSP period
We will strive to achieve sales growth that exceeds market growth rates in the Medical Businesswhile eliminating operational inefficiencies to realize high-quality (highly efficient) growth(EBITDA of ¥150 billion forecast for fiscal 2016 → EBITDA of ¥240 billion forecast for fiscal
2021).
Financial soundness Equity ratio: 50%
Under the medium-term vision, we worked to achieve a sound financial position. Now, however, we
believe it is crucial to secure extra leeway for responding to risks if we are to further develop ourbusiness. For this reason, we aim to raise the equity ratio to 50% by expanding income throughimprovements in profitability and business growth (equity ratio of 39% forecast for fiscal 2016).
By achieving the aforementioned management targets, we forecast that figures for various
indicators will be as follows.

Consolidated net sales

Consolidated operating
incomeCompound annual growth rate of 6%
Fiscal 2016 forecast: ¥816 billion → Fiscal 2021 forecast: ¥1,100
billion(Medical: ¥900.0 billion; Scientific Solutions: ¥130 billion; Imaging:¥55 billion)
Compound annual growth rate of 10%
Fiscal 2016 forecast: ¥100 billion → Fiscal 2021 forecast: ¥170 billion(Medical: ¥225 billion; Scientific Solutions: ¥13 billion;
Imaging: ¥2 billion)

Free cash flow

5-year aggregate of more than ¥250 billion

EPS

¥320
Fiscal 2016 forecast: ¥163 → Fiscal 2021 forecast: ¥320

After securing the internal reserves necessary to ensure a stable financial base, we will firstprioritize the allocation of funds toward investments in growth fields, with the remainder offunds used to provide shareholders with an appropriate level of dividends that matches their
expectations. (We intend to target a total return ratio of 30% in the future.)- 2 -3. Priority Strategies
We have defined the following six priority strategies to ensure that we can strengthenfoundations and develop an aggressive business portfolio for sustainable growth whileachieving our management targets.


Take action to grow businesses Expand lineups and promote sales of strategic products Shift from installation based medical business model to procedure based medical
business model Pursue growth opportunities in peripheral businessesAcquire necessary management resources in a timely manner and fully leveragethese resources Manage portfolio of businesses in fields with low growth potential and shift
management resources to growing business fields
 Recruit and develop capable human resources in a timely manner Optimize global R&D systems and production systems (production siteplanning)Advance forward-looking preparations to realize continued growth Develop businesses and conduct upfront investments from a long-term
perspective (technology research, exploration, and development) Promote development of new businesses to advance minimally invasive
treatments
 Advance long-term measures for expanding businesses in emerging countries

Pursue further business efficiency improvements
 Reduce costs and improve efficiency by optimizing product lineups
 Standardize processes and improve inventory managementEnhance management on a global and Groupwide basis
 Strengthen and improve the efficiency of Functions
 Develop a mindset to realize One Olympus

Strengthen QA/RA and internal controls and promote strict compliance Enhance quality management systems and organizations to further businessexpansion in medical field Further strengthen internal control functions
 Construct and implement compliance systems suited to a truly global company

4. Positioning of Each Business within Portfolio
We will prioritize the allocation of management resources to the Medical Business.
The Medical Business will expand the scope of its operations centered on early diagnosis andminimally invasive treatments as it seeks to further improve its earnings capacity.
The Scientific Solutions Business will push forward with strategies tailored to specific customer
segments and thereby establish and strengthen earnings foundations. Meanwhile, the Imaging
Business will address the changing and contracting digital camera market while examining meansof utilizing the technologies and resources of the business in other businesses.
In regard to new businesses for the future, we will explore businesses with the potential to
become major pillars supporting Olympus and conduct related incubation activities. At the sametime, we will seek to acquire new technologies while establishing business foundations inemerging countries.
Furthermore, we will aggressively conduct mergers, acquisitions, and other investments instrategically important fields.
END
- 3 -

2016 CORPORATE STRATEGIC PLAN (16CSP)(For 5 Years from Fiscal 2017 to Fiscal 2021)

Strengthening foundations and developing an aggressive business portfolio for sustainable growth beyond the 100th anniversary (2019)
Corporate
Philosophy

Policies“Social IN”

Integrity

Innovation

One Olympus• We will strive to be the most valuable partner to experts and customers with high aspirations through the timely provision of appropriate solutions that meettheir high-level needs.
• We will achieve this goal by utilizing our innovative thinking, expertise in advancing technology, operational excellence, and high ethical standards.
• Through these efforts as well as through sustainable growth, Olympus will meet the expectations of all stakeholders and act as a good corporate citizen.

• We will maximize performance of the entire Olympus Group by sharing values and strategies and making full use of the management resources on a global andGroupwide basis.

Foundation of Business Advantage (Style of Competition)/Business Domain: We will compete indomains in which we can utilize our strengths as a “Business to Specialist” Company and fully leverage
our management resources.

Capital Efficiency

Priority
Strategies

ROE 15%Business Growth

EBITDA
Double-digit growth (CAGR)

Organization Management: We will strive to strike a balance between establishing an appropriate level ofheadquarters control (centripetal force) and realizing highly empowered operating sites (centrifugal force).
Business Strategies developed in accordance with the Management Strategy; and Functional
Strategies designed to support the Business Strategies. Within this framework, we will practice a matrix
style of business operation by merging the business and function sides of operations in a balancedmanner to fully utilize the management resources of the entire Company.
Corporate Governance: Acting in accordance with the Basic Policy for Corporate Governance, we will
implement all principles of Japan’s Corporate Governance Code.

Profitability

Financial Soundness

Operating Margin 15%

Equity Ratio 50%

Working to secure an appropriate level of financial soundness, we will constantly achieve ROE of 15%
through balanced improvements in profitability and business growth and double the bottom line (EPS) over the next five years

Emphasized
Corporate
CultureHuman Resources: We aim to develop a lively workplace environment in which a diverse range of humanresources from various backgrounds always treat their colleagues with respect and understanding. In thisenvironment, all employees will share one common vision and utilize their unique talents to contribute to
the development of the Company.
Shareholder Returns: After securing the internal reserves necessary to ensure a stable financial base,we will first prioritize the allocation of funds toward investments in growth fields, with the remainder of funds
used to provide shareholders with an appropriate level of shareholder returns that matches their expectations.
Corporate Citizenship: We adhere to standards of good practice and make appropriate contributions tosociety. We do what we are expected to do as a good corporate citizen.

“Diversity and teamwork” “Willingness to take on challenges”“Sense of speed” “Broad perspective” “Adherence to high ethical standards”

Take action to grow businesses 

Advance preparation to realize continued growth Enhance management on a global and Groupwide basis • Expand lineups and promote sales of strategic products• Shift from installation based medical business model to procedure based medical business model• Pursue growth opportunities in peripheral businesses• Develop businesses and conduct upfront investments from a long-term perspective (technology
research, exploration, and development)• Promote development of new business to advance minimally invasive treatment• Advance long-term measures for expanding businesses in emerging countries• Strengthen and improve the efficiency of Functions• Develop a mindset to realize One Olympus

Acquire necessary management resources in a timely mannerand fully leverage these resources 

Pursue further business efficiency improvements • Manage portfolio of business in fields with low growth potential and shift management resources togrowing business fields• Recruit and develop capable human resources in a timely manner• Optimize global R&D systems and production systems (production site planning)• Reduce costs and improve efficiency by optimizing product lineups• Standardize processes and improve inventory management

The Medical Business will be a major target of management resource allocation. Expand our business scope focused on early diagnosis
and minimally invasive treatments in order to boost earnings capacity. 

Positioning ofBusinesses
within Portfolio

Olympus contributes to society by making people’s lives healthier,safer and more fulfilling around the world

VisionTo be the greatest “Business to Specialist” Company

Growth Style: In principle, we will primarily pursue organic growth. To realize sustained growth, we will
manage business pipelines from a medium- to long-term perspective. We will look outside the Company
for growth opportunities and proactively take part in M&A transactions and business alliances that are
viewed as strategically viable and feasible based on the Company’s organizational strength and integration and management (post-merger integration) capabilities.

Management
Goals

Involvement• Gastrointestinal Endoscopy: We will maintain our dominating No.1 position while further improving profitability• General Surgery: We will create a successful disposable product business model and work to develop these operations into a driver for Companywide growth• Commence full-fledged development of operations targeting specific clinical fields (urology, gynecology, ear, nose, and throat (ENT), respiratory, orthopedics,
and etc.)• Develop global service infrastructure and expand profits from service provision as a full-fledged business• Take steps to respond to the increasing drive to limit medical expenses as well as the institution of stricter regulations related to medical equipment

Strengthen QA/RA and internal control and promote strict compliance• Enhance Quality Management Systems and organizations to further business expansion in Medical field• Further strengthen Internal Control function• Construct and implement compliance systems suited to a truly global company

Customer group oriented strategies will be advanced in the Scientific Solutions Business to establish and reinforce earnings foundations. • Improve biological microscope profitability and explore a new field in regenerative-related area and others• Acquire new technologies and expand product portfolio in industrial and testing fields

Appropriate response to changes in and contraction of the digital camera market will be swiftly taken. Technologies and resources
developed in Imaging Business will be utilized on a Groupwide basis. • Establish a unique brand position that provides value accepted by a specific group of customers, even if that group may be small• Achieve competitive edge of systems with regard to primarily OM-D and Pro-Lens system and keep contributing as a driver of Companywide technology

Initiatives will be strengthened to create new businesses. • Research and investigate new technologies for the future, and advance and accelerate the commercialization of these technologies• Develop business foundations in emerging countries

Performance
Indices andTargets

Net sales Average annual growth rate of 6%

Operating margin FY2016 12% → FY2021 15%

FY2016 ¥816 billion → FY2021 ¥1,100 billion (Medical: ¥900 billion, Scientific Solutions: ¥130 billion, Imaging: ¥55 billion)(Medical: 25%, Scientific Solutions 10%, Imaging: 4%)

Operating income Average annual growth rate of 10%

EBITDA Average annual growth rate of 10%

FY2016 ¥100 billion → FY2021 ¥170 billion (Medical: ¥225 billion, Scientific Solutions: ¥13 billion, Imaging: ¥2 billion)

FY2016 ¥150 billion → FY2021 ¥240 billion

Free cash flow 5-year total: More than ¥250 billion
Earnings per share (EPS) FY2016 ¥163 → FY2021 ¥320
Total return ratio Approx. 30%

Current Situation For Olympus

Operating Environment• Recognizing that the new management team had been charged with the task of regaining the credibility lost due to thescandal and improving corporate value, 13CSP set forth the corporate management policies of “Back to Basics,” “OneOlympus,” and “Profitable Growth.” Under these policies, we pushed forward with the reconstruction of the company.

Pressure to limit medical costs• Early diagnosis and minimally invasive treatments becoming increasingly effectivemeans of providing economic benefits in medical field

More stringent legal regulations and more rigorous demands• Strengthening organization and systems for product registration and quality
assurance• It can be said that we have been successful in getting out of our state of crisis, and that we have been recovering lost trust.
This success was largely a result of the restructuring of corporate governance, the restoration of financial health, and thegrowth of the mainstay Medical Business.

Rise in case numbers and decrease in number of medical institutions due toaging of population• Increasingly high expectations for Olympus to help reduce facility downtime bystrengthening service systems• Opportunities to expand business by shifting from capital products to disposable
products

Structural market changes, including growing presence of group purchasingorganizations (GPOs) and integrated delivery networks (IDNs) in North America• Need to adapt and strengthen sales systems (key account management, sales
personnel management, etc.)• As our business scope expands and presence grows, stakeholder expectations and demands are increasing.
• In April 2015, companies, namely OT, OMSC and OIMC were integrated and we were reorganized to form a matrix style ofbusiness operation. There is a need to strengthen governance through global management and along the functional axis of
the organization.

ROE FY2016 14% → FY2021 15%

Economic slowdown and latent potential of Chinese market• Continued strengthening of systems in this focus market while accounting forvarious risks

Equity ratio FY2016 39% → FY2019 50%*Forecasts for FY2016 are based on 3Q results (February 2016)

Rising presence of emerging countries and business growth potential for our
Medical Business• Ongoing investment from medium-to-long-term perspective in selectively chosentargets (infrastructure development, education support, etc.)
Diversifying customer needs in Scientific Solutions Business• Shift from strategies based on product lineups to those oriented toward
customer groups
More sophisticated desire of core users in shrinking digital camera market• Provide unique value that is characteristic of Olympus