OLYMPUS Investor Day 2017

Scientific Solutions Business (SSBU)
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 ofpreparation. These forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties, future businessdecisions, and other internal and external factors that 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, otherinformation should be used in addition to this material when making investment
decisions.
Olympus Corporation assumes no responsibility for any damage resulting from the useof this material.

2017/9/13

No data copy / No data transfer permitted

Progress in Addressing Strategic Challenges (Business Strategies)
1 Realize continuing organic growth and keep operating margin consistently
above 10% through initiatives tailored to customer segments(¥Billion)＜FY2017 Revenue / Operating profit＞
Revenue

Operating profit

LS Research

53.055＜New Products Launched in Fiscal 2017＞
Confocal Laser Scanning
Microscopes FV3000 series

40.4

Manufacturing
Infrastructure Maintenance25

Industrial Videoscope
IPLEX NX series
6.1
-0.2

-5

FY2017(1H)

FY2017(2H)

Environment &Natural Resource
Handheld XRF analyzers
VANTA series

1H: Sluggish sales due to rapid yen appreciation and delays in deliveries of certain products and inlaunches of new products
2H: Swift recovery due to market upturn, resolution of internal issues, and new product benefits3

2017/9/13

No data copy / No data transfer permittedFuture Directives for Accomplishing Targets of 16CSP
Steadily implement customer segmentsoriented-strategies

1

RevenueAchieve growth and improve profitability in existing
businesses

Operating profit
Operating profit margin

 Develop shared global operating foundations to improve
profitability
 Expand solutions targeting the pathological examination
market Promote automation and IoT compatibility of industrial
inspection equipment234

2017/9/13

Expand product portfolios targeting priority
customer segments

130.0

93.4

10%

 Expand product portfolios focused on the clinical(pathological examination), manufacturing, andinfrastructure maintenance customer segments

6%

Step up development of drug discovery andregenerative medicine solutions

5.9

 Conduct ongoing investment in new product developmentwith a view to future market expansion
No data copy / No data transfer permitted

FY2017(Results)

13.0
FY2021(Targets)

OLYMPUS Investor Day 2017

Imaging Business (IMBU)
Hiroyuki Sasa
President and Representative Director
Olympus Corporation
September 13, 2017

Progress in Addressing Strategic Challenges (Business Strategies)

１

Select and concentrate and prepare for market decrease①

Advance ongoing business structure reforms
 Focused on development of highly-profitable OM-D series and PRO series lenses•

Launched flagship OM-D E-M1 Mark II and two M. ZUIKO PRO series interchangeable lenses

 Consolidated manufacturing functions to limit increases in manufacturing costs and improve
efficiency of new product manufacturing launch•

Steadily transferred production from Shenzhen to Vietnam② Improve responsiveness to market changes
Achieved massive improvement in profitability by revising region-specific sales channel strategiesand cost structures③ Minimize inventory risks
 Steadily improved supply chain management processes

6

2017/9/13•

Maintained leveled production volumes and effectively controlled inventories•

Reduced numbers of product items (reduced numbers of compact audio products and SLR lens kits)•

Shortened lead times (began shipping certain products directly from Vietnam)

No data copy / No data transfer permitted

Progress in Addressing Strategic Challenges (Business Strategies)

2

Clarify and entrench Olympus’ unique characteristics
Focus business on providing unique value to specific customer groups (specialists) and

maintain strong market position•

OM-D E-M1 Mark II named “Camera of the Year” and received “Readers Award” and M. ZUIKO Digital ED 12-100mm
f/4.0 IS PRO named “Lens of the Year” in Camera Grand Prix 2017 Awards• Received awards as part of TIPA Awards 2017, a major European photo and imaging award programFulfill role as technology driver for entire Olympus Group by developing advanced digital andnetwork technologies① Advanced digitaltechnologies② Low-cost production
design capabilities③ Mobile technologies

72017/9/13

No data copy / No data transfer permitted

ScientificSolutions

Moved forward with development of next-generation products using advanced
digital technologies as part of initiatives to create regenerative medicine solutions

MedicalAdvanced development of next-generation energy devices utilizing various
technologies for energy devices, including low-cost mass production technologies,
composite part integration technologies, and miniaturization technologies

Future Directives for Accomplishing Targets of 16CSP
Develop high-value-added business to continually improve profitability
Solidify profitable business structures and step up implementation of“Business to Specialist” model62.8 Promote sales of highly-profitable OM-D series cameras andPRO series lenses
 Accelerate development of products aimed at expandingbase of professional and high-level amateur customers

Revenue
Operating profit
Operating profit Margin

Others

10%

55.0

50.0

 Improve cost efficiency
 Continue to minimize inventory risks and reduce
manufacturing costs

Digital SLR0%
0.08

2017/9/13

No data copy / No data transfer permitted

FY2017(Results)

0.2

4%

5%

2.0
FY2021(Targets)

0%