OLYMPUS Investor Day 2017

16CSP Overview
Hiroyuki Sasa
President and Representative Director
Olympus Corporation
September 13, 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 positionto 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.

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Initiatives Targeting Ongoing GrowthLong-termperspective• Enhancement of financial position• Reinforcement of management and business foundations(improvement of operational efficiency and productivity)• Investment in sustainable growth (R&D expenditures, capitalexpenditures, etc.)

Recover trust and strengtheninternal systems
2012

2016

Management
reconstruction stage5

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20172019 (100th anniversary)

2021

Sustainable growth stage

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Review of the First Year of 16CSP－Performance Indices (Targets) Issues presented in terms of profitability (operating margin) and businessgrowth (EBITDA)
FY2017(IFRS / Results)16CSP
Targets

11%

15%

Operating Margin

10%(Constant Currency Basis 13%)

15%

Business Growth

EBITDA*-16%(Constant Currency Basis +6%)

Double-digit growth

Financial Soundness

41%

50%

Capital Efficiency

ROE
Profitability

Equity Ratio
7

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No data copy / No data transfer permitted* EBITDA growth rate only based on JGAAP (because fiscal 2016 performance has not been calculated)Review of the First Year of 16CSP－Priority Strategies
Take action to grow businesses
Acquire necessary management resources in a timely manner and fully
leverage these resources
Advance forward-looking preparation to realize continued growthPursue further business efficiency improvements
Enhance management on a global and groupwide basis
Promote strict compliance, strengthen Quality/Regulatory Assurance
and Internal control
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Review of the First Year of 16CSP－Progress of Priority Strategies
Take action to grow businesses New mainstay products introduced in Medical Business, Scientific Solutions
Business, and Imaging Business to enhance product lineups for future growth(issues present in terms of business growth (revenue growth))
MedicalScientific SolutionsContained Tissue
Extraction System（PK Devices）

FV3000（laser scanning confocalmicroscope）

OM-D E-M1 Mark II
M.ZUIKO DIGITAL ED
12-100mm F4.0 IS PRO

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VANTA（X-ray fluorescence(XRF) analyzer）

Imaging

EZ Shot 3 Plus

9IPLEX NXThe Camera Grand Prix2017 Awards "Cameraof the Year", "Lens ofthe Year", "ReadersAwards"

Review of the First Year of 16CSP－Progress of Priority Strategies
Pursue further business efficiency improvements
 Commencement of Business Process Reengineering project Pursuit of operating margin of 15% (target) though improvement of efficiency
and productivity

Operating Margin

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FY2016(Results)

FY2017(Results)

FY2021(Targets)

13%

10%

15%Up 5pts.

Review of the First Year of 16CSP－Progress of Priority Strategies
Promote strict compliance, strengthen Quality/Regulatory Assurance
and Internal control
 Establishment of global operation team to entrench compliance awareness ongroupwide basis
 Ongoing reinforcement of quality management systems based on Olympus
Group Quality Policy Expansion of QA/RA staff centered on Medical Business Reinforcement of RA function, product registration function, and post-market safetymanagement
 Revision and refinement of rules and procedures for processes spanning from R&D tomanufacturing and post-market management

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Plan for Accomplishing the Targets of 16CSP
Generate management resources (capital, funds, etc.)
ManagementGoals

Priority Strategies
1 Take action to grow businesses
2 Acquire necessary managementresources in a timely manner andfully leverage these resources
3 Advance forward-looking
preparation to realize continued
growth
4 Pursue further business efficiency
improvements
5 Enhance management on globaland groupwide basis
6 Promote strict compliance,
strengthen Quality/Regulatory
Assurance and Internal control

Effectively utilize capital and funds

EBITDA
Average annual
growth rate:
double-digit Internal reserve enhancement Growth investments (R&D, M&A, etc.)
 Appropriate shareholder returns

Business Growth(total return ratio of 30%)

Capital Efficiency

OperatingMargin15%
Profitability

ROE15%Equity Ratio
50%
FinancialSoundness

Optimally allocate management resources
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