OLYMPUS Investor Day 2017

General Surgery Business Unit (GSBU) Strategy
Tomohisa Sakurai
Head of General Surgery Business UnitOlympus Corporation
September 13th, 2017

Disclaimer2This material contains forward-looking statements that reflect management’s current views,
plans, and expectations based on information available at the time of preparation. These
forward-looking statements are not guarantees of future performance and involve known andunknown risks, uncertainties, future business decisions, and other internal and external factorsthat may cause the Company’s actual results, performance, achievements, or financial position
to be materially different from any future results expressed or implied by these forward-looking
statements.
Additionally, this information is subject to change without notice. Accordingly, other information
should be used in addition to this material when making investment decisions.
These materials contain information on products that have not yet been approved under The
Law on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical
Devices (including products still under development). This information is not provided for thepurposes of advertising or offering medical advice. This information is purely meant to offer
examples of Olympus’ R&D activities. Moreover, the Company does not guarantee that products
described in these materials will actually be marketed.
Olympus Corporation assumes no responsibility for any damage resulting from the use of thismaterial.

2017/9/13

No data copy / No data transfer permitted

Positioning of GS Business within Olympus
 Aggressively allocating management resources to grow GS business
into 2nd core business after GI Main growth driver in Medical Business, achieve sales growth
exceeding market growth rate
 Improve profitability along with single-use business sales growth

Medical BusinessNet sales:¥570.4billion
GSBU7973

2017/9/13

No data copy / No data transfer permitted(FY2017)

Today’s Agenda

1. Positioning of GS Business and Business Strategies
2. Strategy Progress and Issues
3. Future Actions4

2017/9/13

No data copy / No data transfer permitted

GSBU Product Portfolio

55inchSurgicalImaging
IR Observation
SystemEnergy
Devices

New 3D
scopes(Rigid, Flex)

THUNDERBEAT
Type-S

Laparoscopic Surgery
System inGynecology

Operating Room
System Integration

IP Image Management(Distribution and Recording Image)Operating Room
SystemIntegration5

2017/9/13

No data copy / No data transfer permitted

GSBU Business Strategy

Establish new de facto standard in surgical imaging market
Secure No.3 position in energy device market and encroach
upon No.2 and No.1 positions
Establish single-use device business model
Fully leverage Olympus’ strength in GI field6

2017/9/13

No data copy / No data transfer permitted

Strategy Progress and Issues

Establish new de facto standard in surgical imaging market【Priority Measures】

Complete 4K/3D imaging chains
VISERA 4K-UHD

 Introduced in Europe, Japan and US Added 4K recorder and new camera head
 Taking time to close contracts of conversion
accounts
 Expand sales target with enriching 4K compatible
scope line-ups (5/10mm, ENT, Orthopedics)
7

2017/9/13

No data copy / No data transfer permitted

VISERA ELITE Ⅱ (3D) Introduced in Europe/Japan Line-up including rigid 3D scope and flexible 3D scopewith deflectable tip
 3D image recorder Accelerate sales for OLYMUS customers’ replacement
 To be introduced in US in the fiscal year to put sales
back on the track of the expected growthStrategy Progress and Issues

Establish new de facto standard in surgical imaging market【New Product*】

VISERA ELITE Ⅱ

Improved 3D function asstandard setting

Universal platform acrossdepartments

Addition of IR
Observation Function

2DHDGI
Video Processor

SONY4K3D
MonitorConvertible

URO

The world’s firstimage rotation
function

ENT

3D Function, integrated
Light Source

OLYMPUS’ uniqueflexible Videoscopewith deflectable tip
Joystick control

Rigid scopes for various specialties"NOTE: These products are either Pending FDA 510(k) clearance or in development. VISERA ELITE Ⅱ is not for sale in the USA.

82017/9/13

No data copy / No data transfer permitted

Modeswitchbutton

Non-IRObservation
IR solo observationmode

IR observation
overlapped modeStrategy Progress and Issues

Establish new de facto standard in surgical imaging market【Priority Measure】 Proposing 4K world via OR System Integration
OR-1

OR-2
・・・

4K

4K image signal
IP conversion

映像信号

4Kスイッチャ―
Imagesignal
switcher

4K
2DHD

・・・
4K

2DHD

HDHDHDHD Direct switching system of laparoscopic
image signals
 Mixed different image standards
 Independent from hospital network：Image signal cables

9

2017/9/13

No data copy / No data transfer permitted

Network：Network

IP base 4K image management
Easy editing, distribution, recording
Connected to in and outside hospital network
Proposing solution is enhanced via ISM M&AGetting more big-scale 4K sales deals in US

Strategy Progress and Issues
Secure No.3 position in energy device market and encroach upon No.2
and No.1 positions【Priority Measure】 Expand Energy Device Portfolio and Accelerate Development Speed- THUNDERBEAT -ITM*

Laparoscopic Surgery
GI Surgery
URO Surgery

STMSGenerator

 New SONICBEAT : 3types
 From February 2016
 Ultrasonic only

 THUNDERBEAT Type-S From April 2017
 Basic function
improvement

 Software update From April 2017
 Feedback function
improvement

 Extended Jaw From May 2016
 Rapid cutting PK AIM※ From 2017 in US
 Monopolor + Bipolar
combination

Open Surgery
Thyroid
LiverCavitas pelvis  Fine Jaw
 From April 2016
Breast Fine tip shape"NOTE: Thunderbeat Type-S and ITM are pending USA FDA 510(k) clearance; they are not for sale in the USA."10 2017/9/13

No data copy / No data transfer permitted*ITM：Intelligence Tissue Monitoring

Strategy Progress and Issues

Secure No.3 position in energy device market and encroach
upon No.2 and No.1 positions【Priority Measure】 Expand Energy Device Portfolio and Accelerate Development Speed– PK DeviceLaparoscopic
Surgery

CTE* system

Gynecology
 PK instruments※(spatula, needle, loop) From 2016 (Europe/ US) STMS compatible

STMS
Generator

Downsized withimproved
function
11 2017/9/13

No data copy / No data transfer permitted

 Pneumoliner※ PK Morcellator※
 From 2017(Europe/US)  From 2017 (Europe/US)
 Tissue cutting/extraction  Used together with PK
Morcellator
 November 2016
Conducted product training using CTE
system together with AAGL Introduced in US/Europe in this fiscal year;
Expect sales increase together with PK
instruments, thus PK business recovery*CTE…Contained Tissue Extraction System

Future Actions to Achieve 16CSP
GSBU：CAGR 11% in revenueGSBU
 Slow sales in the 1st year of 16CSP, but strategy and measures progressing on track Expecting back to planed growth path with enhancing and adding activities

Surgical Imaging
 Maximally leverage ISM assets; 4K/3D big-scale sales deals; propose multiple
operating rooms’ integration
 New VISERA ELITE Ⅱ and 3D scope introduction in each region, accelerate
promotionEnergy Continuous device portfolio expansion and enhance sales promotion with improved
value based marketing Enhancing energy sales organization in China, Asia and developing regions
 Re-strengthen PK business in US
12 2017/9/13

No data copy / No data transfer permitted