OLYMPUS Investor Day 2018

Overview

Hiroyuki Sasa
Representative Director, President
Olympus Corporation
September 5, 2018

Disclaimers


The financial forecasts and other material in this document are based on judgements and assumptions derived fromcurrently available information. Actual results may differ significantly from targets, being subject to change due to factors
such as the uncertainties implicit in these judgements and assumptions and due to future changes in business
operations and circumstances inside and outside the company.

Furthermore, this information is subject to change without notice. Accordingly, use of this information and this document
should be at the discretion of the user and done with reference to information obtained by other means.

This document contains information about products that have not yet been approved in some countries including Japan(including products under development). This information is not intended for promotional or medical advice use. Rather,
it is provided to give examples of technology development by Olympus and no guarantees are made about the future
sale of such products.

Olympus accepts no responsibility for any losses that arise from use of the information in this document.

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Key Points for Today

Olympus’s Endoscope Business
Medical business in emerging-market

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Key Points for Today

Olympus’s Endoscope Business
Medical business in emerging-market

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Olympus’s Endoscope Business
Related products and services withgastrointestinal endoscopes

Sales trend（JPY based）

Endoscopes

Endotherapy devices

Endoscope
reprocessors

Gastrointestinal endoscopes：CAGR 9%

Maintenanceservices

Endotherapy devices：CAGR 10%Maintenance services※
CAGR 11%
20122013

2014

2015

2016

2017

Together with a gastrointestinal endoscope with over 70% of the world market share,
Steady growth of related products and services (Endotherapy devices, maintenance services, etc.) has been recorded
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SP5236V01※Related to gastrointestinal endoscopes

Medical business in Emerging-market
Revenue ratio of emerging markets(Compared to other companies)

Asia / Oceania region's share of Revenue and CAGR

※After foreignexchange adjustment

Gastrointestinal
Endoscopes

FY201315%FY2018

20%

Revenue
growth rateover 5years（CAGR）※FY2018

19%

15%

16%

SurgicalDevices

12%

17%

18%

Endotherapy
Devices

11%

19%

22%

Medical

13%

19%

17%

Global health care company

11%

オリンパス
Olympus

A

B

10%

C

Enter the emerging markets ahead of other global health care companies
and earn a firm presence
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Medical business in Emerging-market
Number of Endoscopists perMillion People

Training centers and Service bases※Based on publicly available dataChina

22Malaysia

17

Philippines

4Indonesia

2Vietnam

6Thailand

4India5Japan Continuing training support for medical staff in Asia
（New Training Center (K-TEC) established in Korea）

Korea
●● ●●
●Beijing
Guangzh

Thailandd

 Industry-leading service network spreading toapproximately 200 bases worldwide including Asia

250Expand revenue by taking advantage of high growth potential
based on strong presence in emerging markets
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Key Points for Today

Olympus’s Endoscope Business
Medical business in emerging-market

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Review* Excluding sales of information andcommunications business (2005 – 2013)

Sales trend
 Gastrointestinal Endoscopes: Good progress on development of next generation of endoscopes Surgical devices: Good progress on winning accounts with 4K system

A number of large revenue achieved in North American market (world’s largest) through collaboration with ISM
Acquisition of new leads with IDN

Resultsandprogress

Currentmanagement

 Endotherapy devices: Growth in line with plan due to product line-up expansion
 Energy devices: THUNDERBEAT continues to enjoy double-digit growth, with development and manufacturing
infrastructure established in North America
 Emerging countries: Double-digit growth for two years running in Asia/Oceania region
Training and service centers established in Thailand and Dubai
 Maintenance infrastructure: Strengthening of repair infrastructure, especially in Europe and America

Medical1919～（Founded）

1991

Other

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Medium-term vision

 Medical business continues to achieve steady growth and drive corporate performance9

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2017

2018

16CSP

Continued growth despite a changing operating environment and gastrointestinal endoscopes being in thelater stages of their product lifecycles
2016

Successful implementation of investment and other measures for future growth
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ReviewKPI

2017/32017/3

2018/3

16CSP target

ROE

19%

11%

14%

15%

Operating margin

10.2%

9.6%

10.3%

15%

EBITDA

-16%

－※＋7%

Double-digit
growth50%(Capital efficiency)(Business profitability)(Growth performance)

Capital-to-asset
ratio(Financial soundness)(JGAAP)（IFRS）（IFRS）（130 billion yen)（126 billion yen)（134 billion yen)

43%

41%

45%

 ROE and capital-to-asset ratio are in accordance with plan Operating margin and EBITDA are below expectations (we ae conscious of issues surrounding
growth performance in particular)
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SP5236V01* EBITDA for 2017/3 is only available for Japanese accounting rules (as IFRS results have notbeen calculated for the March 2016 period)Projections for March 2021 Period
CAGR (sales)

Assumed exchange rates for
FY2021 and 2024:
105 yen/$US, 130 yen/Euro※After foreign exchange adjustment

16CSP (Initial forecast)
16CSP (Adjusted)

1 March 2024 period projection

1+6%(5-year initial forecast)

Sales: 1,000 billion yen
Operating margin: 15%

2+4%(5-year growth rate)

2 March 2021 period projection+3～6%

Sales: 840-880 billion yen
Operating margin: 13%～14%(Forecast for final 2-years)+３%(Forecast for first 3-years)
FY2016FY2017FY2018FY2019FY2020

FY2021

FY2024 The FY2021 targets were revised based on current situation.
 The initial targets are expected to be achieved by FY2024 at the latest (three years later thanplanned)
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Measures Aimed at Projections for March 2021 Period
Measures for achieving growth over final twoyears (CAGR of up to 6%)

Factors impeding CAGR
 Endoscopes:

A number of new products have been delayed as a resultof constraints on development resources due to dealing
with implications of EU-MDR on existing products andreprocessing Surgical:

Affected by supply delays due to production problemsduring introduction of new product (VISERA ELITE II) andproduct launch put back due to delays in regulatory
approvals in North America

 Urology and gynecology:

Temporarily slow growth due to shipping hold and recall offlexible ureteroscopes

 Endoscopes:

Successful development and trouble-free launch of
the next generation of endoscope systems

 Surgical:

Early resolution of new product launch delays andsupply problems, and capture market share in US Urology and gynecology:

Get back on 16CSP growth track through launch ofnew flexible ureteroscopes

Successfully launch new products to drive sales growth12

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SP5236V01* Reprocessing means cleaning, disinfection, and sterilization

Key Points for Today

Olympus’s Endoscope Business
Medical business in emerging-market

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Initiatives for Achieving Sustainable Growth: Review of Current Situation
Shift to procedure based medical business model（expansion of single-use device operations）
Gastrointestinalendoscopes

 Grow the business and achieve substantial market share by global deploymentof modalities developed in tandem with Japanese healthcare

Differences incompetitive conditions
 Shift focus of business growth away from endoscopic diagnosis to therapy
Therapy devices
devices (single-use devices) Levels of management speed and efficiency that rival global healthcare companies
 Utilization of healthcare clusters in America and Europe Along with existing strengths, management speed and efficiency matching performance of European and American multinationals is needed To become a world-class health care company, transform into a truly global company

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Initiatives for Achieving Sustainable Growth: Establish Global
Management Practices

One Olympus

Coherent strategies for establishing management practices thatbring together the global group

Lay out clear directions for achieving “One Olympus” management practices
throughout the global group

2015

Integration of business-specific companies

2016

Switch to management based on a business and function
matrix and formulation of new management strategies
under this structure

Reformulate management principles to progress toward global management15

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Initiatives for Achieving Sustainable Growth:
Formulation of New Management Principles
OUR CORE VALUESOUR PURPOSE

 Strengthen values that suit the current competitive environment (agility) whilestill holding to the principles of “Social-IN”
 Find words that will bring Olympus Group employees together around the world
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Initiatives for Achieving Sustainable Growth:
Formulation of New Management Principles
Launch activities around the worldAmbassador workshop around the world

The core values (values) co-sponsored by the management and global brandambassadors of around the world for half a year cooperated and launched all over
the world this summer
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Initiatives for Achieving Sustainable Growth: Improve Management
Speed and Efficiency

Global project for boosting management speed and efficiency
Establishment of global governance (management practices and infrastructure)
Redefine functions and roles at global level and clarify responsibilities
Move to new organization structure based on redefined functions,roles, and responsibilities
Establish decision-making processes and assignment of authorities
based on new organization structure
Improve the speed of all processes until decision making, execution,evaluation, improvement

Design of global human resource system
Establish human resource system that helps with global
recruitment
Maximum utilization of abundant global talents already in the group
Improve global talent management18

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Initiatives for Achieving Sustainable Growth: Achieve Medical Innovation

Open innovation and collaborative creation
Deal with technology, innovation, and riskPursue open innovation to overcome “not invented here” attitude

Growth potential of disposable device operations
Extent to which sales organization is in place we have worked on so far
Room for linear growth by providing additional products(Improved development speed、High frequency product introduction）
Potential for innovations out of USA
Use of US medical clusters (accelerate progress based around US sites)
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Building a newbusiness model
specializing indisposabledeviceoperations

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