This document has been translated from the Japanese original (as submitted to the Tokyo Stock Exchange) for
reference purposes only. Olympus Corporation assumes no responsibility for direct, indirect or any other forms ofdamages caused by misunderstanding from the translation.

Consolidated Financial Results
for the Six Monthsof the Fiscal Year Ending March 31, 2020
<under IFRS>
November 6, 2019
Company Name: Olympus Corporation
Code Number: 7733
(URL: https://www.olympus.co.jp/)
Stock Exchange Listing: First Section of Tokyo Stock Exchange
Representative: Yasuo Takeuchi, Director, Representative Executive Officer, President and CEO
Contact: Takayuki Aoyagi, Vice President, Accounting Department
Phone: 03-3340-2111
Scheduled date to submit the Quarterly Securities Report:
November 6, 2019
Scheduled date to commence dividend payments:–
Presentation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:Yes (for analysts and institutional investors)(Figures are rounded off to the nearest million yen)

1. Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020
(From April 1, 2019 to September 30, 2019)(1) Consolidated Results of Operations (cumulative)(% indicate changes from the same period of the previous fiscal year)
RevenueSix months ended
September 30, 2019
September 30, 2018(¥ million)
389,189
381,849%
1.9
3.4

Operating profit

Profit before tax(¥ million)
50,9372,985(¥ million)
48,569(2,781)%
1,606.4(92.0)

Profit%––(¥ million)
36,064(5,555)%––

Profit attributable toTotal comprehensive
Basic earnings per share
Diluted earnings per shareowners of parent
incomeSix months ended(¥ million)%(¥ million)
%
(¥)
(¥)
September 30, 201936,063–24,226
201.1
26.93
26.92
September 30, 2018
(5,494)–8,045(81.7)(4.02)(4.02)
Note: On April 1, 2019, the Company conducted a four-for-one stock split of common stock. The stock split is reflected in the amounts of“basic earnings per share” and “diluted earnings per share.”(2) Consolidated Financial Position
Total assets
As of
September 30, 2019
March 31, 2019

Equity attributable toowners of parent

Total equity(¥ million)
961,871932,030(¥ million)
362,851442,387(¥ million)
361,624
441,193

Ratio of equity attributableto owners of parent
to total assets
%
37.6
47.3

2. Dividends
Annual dividends
First quarter

Second quarter
(¥)

(¥)

Third quarter

Year-end
(¥)

Total
(¥)

(¥)
Fiscal year ended
–
0.00
–
30.00
30.00
March 31, 2019
Fiscal year ending–
0.00
March 31, 2020
Fiscal year ending
March 31, 2020
–
10.00
10.00
(Forecast)
Notes: 1. Revisions of the forecast most recently announced: No
2. On April 1, 2019, the Company conducted a four-for-one stock split of common stock. For the fiscal year ended March 31, 2019, theactual amounts of dividends prior to the stock split are presented. The stock split is reflected in the dividend for the fiscal year ending
March 31, 2020 (forecast). (Reference) Without reflecting the stock split, the annual dividend per share for the fiscal year ending
March 31, 2020 (forecast) would be ¥40.00.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2020
(From April 1, 2019 to March 31, 2020)(% indicate changes from the same period of the previous fiscal year)
Revenue

Operating profit(¥ million)%(¥ million)
Full year
800,000
0.8
90,000Note: Revisions of the forecast most recently announced: No

%
218.2

Profit before tax(¥ million)
86,000%327.5

Profit attributable toowners of parent(¥ million)
63,000

%
673.3

Basic
earnings per
share
(¥)
47.05

* Notes(1) Changes in significant subsidiaries during the six months under review (changes in specified subsidiaries
resulting in the changes in scope of consolidation): No(2) Changes in accounting policies and changes in accounting estimates
1)
2)
3)

Changes in accounting policies required by IFRS: Yes
Changes in accounting policies due to other reasons: No
Changes in accounting estimates: No

Note: For details, please see “2. Condensed Consolidated Financial Statements and Significant Notes Thereto (6) Notes to Condensed
Consolidated Financial Statements (Significant accounting polices)” on page 13 of the Consolidated Financial Results (Attached
Material).

(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2019
1,370,914,963 shares
As of March 31, 2019
1,370,853,396 shares2) Total number of treasury shares at the end of the period
As of September 30, 201985,336,052 shares
As of March 31, 2019
5,170,080 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2019
1,338,990,355 shares
Six months ended September 30, 2018
1,365,637,479 shares
Note: On April 1, 2019, the Company conducted a four-for-one stock split of common stock. Concerning the number of shares for theprevious fiscal year, “Total number of issued shares at the end of the period,” “total number of treasury shares at the end of theperiod” and “average number of shares during the period” have been calculated and presented as if the stock split was conducted at
the beginning of the previous fiscal year.

* Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants oran audit corporation.
* Proper use of the forecast of financial results, and other special matters(Caution concerning forward-looking statements)
The forward-looking statements, including forecast of financial results, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Accordingly, the Company cannot make promises to achieve such forecasts. Actual business and other results
may differ substantially due to various factors. Please refer to the section of “Explanation of Forecast ofConsolidated Financial Results and Other Forward-looking Statements” on page 5 of the attached material for theconditions that form the assumptions for the forecast and cautions concerning the use thereof.

Attached Material
Contents
1.

Qualitative Information Regarding Settlement of Accounts for the Six Months ......................................... 2(1) Explanation of Results of Operations ...................................................................................................... 2(2) Financial Position .................................................................................................................................... 4(3) Cash Flows .............................................................................................................................................. 5(4) Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements ..... 52.

Condensed Consolidated Financial Statements and Significant Notes Thereto ........................................... 6(1) Condensed Consolidated Statements of Financial Position..................................................................... 6(2) Condensed Consolidated Statements of Profit or Loss ........................................................................... 8(3) Condensed Consolidated Statements of Comprehensive Income ........................................................... 9(4) Condensed Consolidated Statements of Changes in Equity .................................................................. 10(5) Condensed Consolidated Statements of Cash Flows ............................................................................. 11(6) Notes to Condensed Consolidated Financial Statements ...................................................................... 13(Notes on premise of going concern) .................................................................................................... 13(Reporting entity) .................................................................................................................................. 13(Basis of preparation) ............................................................................................................................ 13(Significant accounting policies) ........................................................................................................... 13(Significant accounting estimates and associated judgments) ............................................................... 15(Segment information) .......................................................................................................................... 15

1

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

1. Qualitative Information Regarding Settlement of Accounts for the Six Months(1)

Explanation of Results of Operations

Overall

Revenue
Operating profit (loss)

Six months ended
September 30, 2018
381,849

Six months ended
September 30, 2019
389,189

Increase (Decrease)
7,340(Millions of yen)
Increase (Decrease)
Ratio (%)
1.9

2,985

50,93747,952

1,606.4

Profit (loss) attributable toowners of parent(5,494)36,06341,557–

Exchange rate (Yen/U.S. dollar)

110.26108.63(1.63)–

Exchange rate (Yen/Euro)

129.85121.42(8.43)–

Exchange rate (Yen/Renminbi)

16.75

15.68

(1.07)–

In line with the reorganization of the Medical Business, effective from the fiscal year ending March 31, 2020,
we have presented business operations by segment by dividing up the Medical Business into the Endoscopic
Solutions Business and the Therapeutic Solutions Business. For details, please see “2. Condensed
Consolidated Financial Statements and Significant Notes Thereto (6) Notes to Condensed Consolidated
Financial Statements (Segment information)” on page 15.

The global economy slowed down overall during the six months ended September 30, 2019, and the situation
remained unclear due to trade friction between the U.S. and China and the U.K.’s actions regarding its
withdrawal from the EU. In the Japanese economy, despite signs of weakness mainly in exports, personal
consumption was steady, supported by strong corporate earnings and improvement in the employment andincome environments.
Amid this business environment, the Olympus Group announced its business transformation plan “Transform
Olympus” in January 2019 to develop itself as a truly global medical technology company, and we alsoannounced a medium- and long-term management strategy based on “Transform Olympus” in November
2019. This management strategy replaces the medium-term management plan, 2016 Corporate Strategic Plan(“16CSP”), announced in April 2016 and indicates the long-term direction of the Company. Going forward,
we will work to achieve sustainable growth based on this management strategy.
The Olympus Group’s overall consolidated revenue for the six months ended September 30, 2019 increasedto ¥389,189 million (up 1.9% year on year), due to increased sales in the Endoscopic Solutions Business,
Therapeutic Solutions Business and Scientific Solutions Business. Operating profit was ¥50,937 million(compared with an operating profit of ¥2,985 million in the same period of the previous fiscal year) due toprofit growth in the Endoscopic Solutions Business, Therapeutic Solutions Business and Scientific Solutions
Business, and the large improvement resulting from increased cost-effectiveness and the absence of ¥38,320
million in “Other expenses” recorded as one-time costs in the same period of the previous fiscal year relating
to a monetary settlement following damages claim securities litigation settlements, costs associated with therestructuring of the Imaging Business’s manufacturing locations, damages resulting from the judgment
regarding a lawsuit involving a Chinese production subsidiary, costs associated with entering into a plea
agreement with the U.S. Department of Justice, etc. Although finance costs declined mainly due to exchange
losses, profit attributable to owners of parent improved significantly to ¥36,063 million (compared with loss
attributable to owners of parent of ¥5,494 million in the same period of the previous fiscal year) despite anincrease of income taxes associated with a significant improvement in operating profit.
Regarding foreign exchange, the yen appreciated against the U.S. dollar, the euro and the renminbi comparedto the previous fiscal year. The average exchange rate during the period was ¥108.63 against the U.S. dollar(¥110.26 in the same period of the previous fiscal year), ¥121.42 against the euro (¥129.85 in the same periodof the previous fiscal year) and ¥15.68 against the renminbi (¥16.75 in the same period of the previous fiscal
year) which caused revenue and operating profit to down by ¥13,401 million and ¥4,322 million,
respectively, year on year.

2

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

Endoscopic Solutions Business

Revenue
Operating profit (loss)

Six months ended
September 30, 2018
200,81241,590Six months ended
September 30, 2019
206,789
59,816

Increase (Decrease)
5,977
18,226(Millions of yen)
Increase (Decrease)
Ratio (%)
3.0
43.8

Consolidated revenue in the Endoscopic Solutions Business amounted to ¥206,789 million (up 3.0% year onyear), while operating profit amounted to ¥59,816 million (up 43.8% year on year).
In the mainstay endoscopy systems, steady sales were maintained in developing countries such as China.
Sales in Japan were strong due to a surge in demand ahead of the consumption tax hike despite reaching thesecond half of their product life cycles in developed countries. Additionally, “VISERA ELITE II” surgicalendoscopy systems also performed strongly, leading to higher revenue year on year in the Endoscopic
Solutions Business.
Operating profit in the Endoscopic Solutions Business increased due to improved cost-effectiveness and theabsence of expenses, such as the costs associated with entering into a plea agreement with the U.S.
Department of Justice, recorded as “Other expenses” in the same period of the previous fiscal year.
Therapeutic Solutions Business

Revenue
Operating profit (loss)

Six months ended
September 30, 2018
104,826
13,100Six months ended
September 30, 2019
108,025
15,223

Increase (Decrease)
3,199
2,123

(Millions of yen)
Increase (Decrease)
Ratio (%)
3.1
16.2

Consolidated revenue in the Therapeutic Solutions Business amounted to ¥108,025 million (up 3.1% year onyear), while operating profit amounted to ¥15,223 million (up 16.2% year on year).
Sales of new flexible ureteroscope products and single-use products of endo-therapy devices for use inendoscopic diagnosis and treatment of biliary and pancreatic ducts and others were strong. Additionally, salesof single-use products of the “THUNDERBEAT” integrated energy device with both advanced bipolar andultrasonic energy continued to grow, leading to higher revenue year on year in the Therapeutic Solutions
Business.
Operating profit in the Therapeutic Solutions Business rose mainly due to the contribution of increased
revenue.
Scientific Solutions Business

Revenue
Operating profit (loss)

Six months ended
September 30, 2018
47,3042,800

Six months ended
September 30, 201949,7395,380

Increase (Decrease)
2,435
2,580

(Millions of yen)
Increase (Decrease)
Ratio (%)
5.1
92.1

Consolidated revenue in the Scientific Solutions Business amounted to ¥49,739 million (up 5.1% year onyear), while operating profit amounted to ¥5,380 million (up 92.1% year on year).
Sales of products for hospitals and life science research were strong in all regions. Sales of industrial
endoscopes were strong for the main markets such as aviation and infrastructure, and sales of non-destructive
testing equipment also increased in the aviation market in North America and in the infrastructure market in
China and other countries in Asia, leading to higher revenue year on year in the Scientific Solutions Business.
Operating profit in the Scientific Solutions Business increased due to the increase in revenue and improved
cost-effectiveness.

3

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

Imaging Business

Revenue
Operating profit (loss)

Six months ended
September 30, 201825,678(9,226)Six months ended
September 30, 2019
21,302(5,697)

Increase (Decrease)(4,376)
3,529(Millions of yen)
Increase (Decrease)
Ratio (%)
(17.0)–

Consolidated revenue in the Imaging Business amounted to ¥21,302 million (down 17.0% year on year),while operating loss amounted to ¥5,697 million (compared with an operating loss of ¥9,226 million in thesame period of the previous fiscal year).
In addition to waiting to introduce new products, the effect of intensifying competition in the mirrorlessmarket and other factors led to a decline in revenue in the Imaging Business.
Operating loss for the Imaging Business declined due to the recording of one-time costs associated with therestructuring of manufacturing locations in the same period of the previous fiscal year.
Others

Revenue
Operating profit (loss)

Six months ended
September 30, 2018
3,229
(1,404)Six months ended
September 30, 2019
3,334
(1,311)

Increase (Decrease)
105
93(Millions of yen)
Increase (Decrease)
Ratio (%)
3.3–

Consolidated revenue in other businesses amounted to ¥3,334 million (up 3.3% year on year), while
operating loss amounted to ¥1,311 million (compared with an operating loss of ¥1,404 million in the same
period of the previous fiscal year).
Mainly biomedical materials business was solid, leading to higher revenue year on year.
Operating loss in other businesses declined due to improvements in the cost-effectiveness of activities ofseeking out new business.

(2)

Financial Position

As of the end of the second quarter under review, total assets increased by ¥29,841 million compared to theend of the previous fiscal year to ¥961,871 million.
As for total assets, cash and cash equivalents increased ¥20,790 million and property, plant and equipment
increased ¥27,297 million primarily due to the impact of the application of IFRS 16 “Leases” from the fiscal
year ending March 31, 2020, on the other hand, trade and other receivables in current assets decreased¥18,086 million and intangible assets decreased ¥1,761 million.
Total liabilities increased in comparison to the end of the previous fiscal year by ¥109,377 million to¥599,020 million, mainly as a net result of a ¥101,085 million increase in bonds and borrowings in current
liabilities, a ¥22,890 million increase in other financial liabilities in current liabilities due to the impact of theapplication of IFRS 16 “Leases” from the fiscal year ending March 31, 2020, and a ¥9,262 million decreasein trade and other payables.
Total equity decreased in comparison to the end of the previous fiscal year by ¥79,536 million to ¥362,851
million. Its decrease was primarily the net result of an increase in retained earnings reflecting ¥36,063 million
in profit attributable to owners of parent, a decrease in retained earnings reflecting ¥10,243 million ofdividends, a ¥93,380 million decrease in purchase of treasury shares, and a ¥12,688 million decrease in othercomponents of equity (exchange differences on translation of foreign operations, etc.).
As a result of the foregoing, equity attributable to owners of parent to total assets decreased from 47.3% as ofthe end of the previous fiscal year to 37.6%.

4

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

(3)

Cash Flows

Cash and cash equivalents at the end of the second quarter under review reached ¥135,535 million, an
increase of ¥20,972 million compared to the end of the previous fiscal year. The following are the cash flows
for the six months ended September 30, 2019.
Cash flows from operating activities
Net cash provided by operating activities for the six months ended September 30, 2019 was ¥67,270 million(compared with ¥27,444 million provided for the six months ended September 30, 2018). The main sourcesof cash included a ¥48,569 million in profit before tax, an adjustment for noncash items of ¥33,398 million in
depreciation and amortization, and a decrease in trade and other receivables of ¥9,714 million. The main usesof cash included an ¥11,465 million increase in inventories and ¥7,605 million of income taxes paid.
Cash flows from investing activities
Net cash used in investing activities for the six months ended September 30, 2019 was ¥31,413 million(compared with ¥31,433 million used for the six months ended September 30, 2018). The main uses of cash
included ¥20,800 million in purchase of property, plant and equipment and ¥10,313 million in purchase ofintangible assets.
Cash flows from financing activities
Net cash used in financing activities for the six months ended September 30, 2019 was ¥10,527 million(compared with ¥58,198 million used for the six months ended September 30, 2018). Increasing factors
mainly included ¥149,398 million in net increase in short-term borrowings and commercial papers.
Decreasing factors mainly included ¥7,863 million in repayments of lease liabilities, ¥48,000 million in
repayments of long-term borrowings, ¥10,243 million in dividends paid and, ¥93,380 million in payments forpurchase of treasury shares.
(4)

Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements

Regarding the forecasts of consolidated financial results for the fiscal year ending March 31, 2020, theforecasts are unchanged from the forecasts announced in the “Consolidated Financial Results for the Fiscal
Year Ended March 31, 2019,” which was released on May 10, 2019.

5

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

2. Condensed Consolidated Financial Statements and Significant Notes Thereto(1)

Condensed Consolidated Statements of Financial Position(Millions of yen)

As of March 31, 2019ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Income taxes receivable
Other current assets
Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Retirement benefit asset
Investments accounted for using equity method
Trade and other receivables
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

6

As of September 30,
2019

114,426
155,321
2,155
153,623
7,931
16,867450,323
5,709
456,032

135,216
137,235
2,798
162,378
4,458
17,006
459,091
5,272
464,363

176,908
101,188
69,26930,2392,440
14,61832,80847,267
1,261
475,998
932,030

204,205
97,92067,50829,6102,283
17,75432,323
43,947
1,958
497,508
961,871Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

(Millions of yen)

As of March 31, 2019
LIABILITIES AND EQUITY
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Subtotal
Liabilities directly associated with assets held for sale
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

7

As of September 30,
201961,72459,7079,391
8,043
10,803
133,311
282,979
4,532
287,51152,462
160,792
20,0558,270
9,834
122,297373,7104,434
378,144

121,628
7,799
43,116
6,468
12,101
11,020202,132
489,643

120,796
30,68942,543
7,187
10,034
9,627
220,876
599,020

124,606
91,310(4,764)(8,234)
238,275
441,193
1,194
442,387
932,030

124,643
91,100(98,142)(20,922)
264,945
361,624
1,227
362,851
961,871Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

(2)

Condensed Consolidated Statements of Profit or Loss
(Millions of yen)Six months ended
September 30, 2018
381,849
133,002248,847
212,387

Six months ended
September 30, 2019
389,189
138,528
250,661
196,712

215

159

4,630
38,320
2,985
1,208
6,974
(2,781)
2,774(5,555)984
4,155
50,937943
3,311
48,56912,50536,064

Profit (loss) attributable to:
Owners of parent
Non-controlling interests
Profit (loss)(5,494)(61)(5,555)36,063
1
36,064

Earnings per share
Basic earnings (loss) per share
Diluted earnings (loss) per share¥(4.02)¥(4.02)¥26.93¥26.92

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted for using
equity method
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit (loss) before tax
Income taxes
Profit (loss)

8

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

(3)

Condensed Consolidated Statements of Comprehensive Income(Millions of yen)Six months ended
September 30, 2018
(5,555)Six months ended
September 30, 201936,064

1,904

739(1,594)
310

829
1,568

12,908387(13,497)
205

(5)

(114)

Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income

13,29013,600
8,045(13,406)(11,838)
24,226Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income

8,105
(60)
8,045

24,225
1
24,226

Profit (loss)
Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Cash flow hedges
Share of other comprehensive income of associates
accounted for using equity method

9Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

(4)

Condensed Consolidated Statements of Changes in Equity
Six months ended September 30, 2018
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2018

Total

Noncontrollinginterests

Total equity

237,316

442,793

1,466

444,259(5,494)(5,494)(61)(5,555)

13,5991

13,600

8,105

(60)

8,045

Share capital

CapitalsurplusTreasurysharesOther
componentsof equity

Retainedearnings

124,560

91,502(4,775)(5,810)Loss
Other comprehensive
incomeComprehensive income

13,599–––Purchase of treasury shares
Disposal of treasury shares(14)

13,599(5,494)

(4)

(4)

(4)

14

0

0

Dividends from surplus(9,559)(9,559)(1,512)

–

–

28

74

74

(193)

(193)

193

–

Transfer from othercomponents of equity toretained earnings
Share-based paymenttransactions

1,512
46

Equity transactions with
non-controlling interests
Total transactions withownersBalance at September 30,
2018

(368)

(9,927)

46

(179)

10

1,512

(11,071)(9,682)(175)(9,857)

124,606

91,323(4,765)

9,301

220,751

441,216

1,231

442,447Six months ended September 30, 2019
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2019

Share capital

CapitalsurplusTreasurysharesOther
componentsof equity

Retainedearnings

Total

Noncontrollinginterests

Total equity

124,606

91,310(4,764)(8,234)

238,275

441,193

1,194

442,387

36,06336,063

1

36,064

ProfitOther comprehensive
incomeComprehensive income(11,838)––

Purchase of treasury shares–(11,838)(2)

2

Balance at September 30,
201924,226(93,380)00(10,243)

850

–

–

(50)

(13)

(13)

(158)

(158)

158

–

(850)

Equity transactions with
non-controlling interests1(10,243)

Transfer from othercomponents of equity toretained earnings
37

24,225(11,838)(93,380)

Dividends from surplus

Total transactions withowners

36,063(93,380)

Disposal of treasury shares

Share-based paymenttransactions(11,838)(126)(10,369)

37

(210)

(93,378)(850)(9,393)(103,794)

32(103,762)

124,643

91,100(98,142)(20,922)

264,945

361,624

1,227

362,851

10

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

(5)

Condensed Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization
Interest and dividend income
Interest expenses
Loss related to securities litigation
Provision related to duodenoscope investigation
Share of loss (profit) of investments accounted for using
equity method
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Other
SubtotalInterest received
Dividends received
Interest paid
Loss on litigation paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for loans receivableCollection of loans receivable
Proceeds from sale of investments
Payments for acquisition of business
Other
Net cash used in investing activities

11

Six months ended
September 30, 2018

Six months ended
September 30, 2019(2,781)
28,372(1,050)2,704
19,226
9,653

48,56933,398
(948)
2,012

(215)

(159)

25,708(10,408)(3,271)
1,063(1,657)(4,319)63,025741
309(2,782)(19,028)(14,821)
27,444

9,714(11,465)(4,866)
295
324
(925)
75,949676
272(2,022)(23,518)
3,305(6,785)(1,162)0274(3,473)(74)(31,433)(20,800)
60(10,313)
(500)
642
60
(462)
(100)
(31,413)–––(7,605)67,270Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings andcommercial papers
Repayments of lease liabilities
Repayments of long-term borrowings
Proceeds from long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Redemption of bonds
Payments for purchase of treasury shares
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Six months ended
September 30, 2018

Six months ended
September 30, 201925,818149,398–(7,863)(48,000)(56,518)
9,425(9,559)(368)(25,000)(4)(1,992)(58,198)12–(10,243)(126)–(93,380)(313)(10,527)

1,798(4,358)(60,389)
191,239
130,850

20,972
114,563
135,535Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

(6)

Notes to Condensed Consolidated Financial Statements(Notes on premise of going concern)
No items to report(Reporting entity)
Olympus Corporation (hereinafter, the “Company”) is a joint stock company located in Japan. The address of
its registered head office is Hachioji-shi, Tokyo. The Company’s condensed consolidated financial statements
comprise the Company and its subsidiaries (hereinafter, the “Olympus Group”) and interests in the
Company’s associates.
The Olympus Group is principally engaged in the manufacture and sales of endoscopic, therapeutic andscientific, imaging and other products. Details of each business are as described in Note “Segment
information.”(Basis of preparation)(1) Statement of the condensed consolidated financial statements’ compliance with IFRSThe condensed consolidated financial statements of the Olympus Group have been prepared inaccordance with IAS 34. Since the requirements for “Specified Company of Designated International
Accounting Standards” set forth in Article 1-2 of the “Regulation on Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements” are satisfied, the Olympus
Group adopts the provisions of Article 93 of the same Regulation. The condensed consolidated
financial statements do not include all the information and disclosures required in the annual
consolidated financial statements and should be used in conjunction with the Olympus Group’s annual
consolidated financial statements as of March 31, 2019.
These condensed consolidated financial statements were approved by Director, Representative
Executive Officer, President and CEO Yasuo Takeuchi, and Executive Officer and CFO Yasushi Sakaion November 6, 2019.
(2) Basis of measurement
The Olympus Group’s condensed consolidated financial statements have been prepared on an
acquisition cost basis, except for specific financial instruments measured at fair value.
(3) Functional currency and presentation currency
The Olympus Group’s condensed consolidated financial statements are presented in Japanese yen,which is also the Company’s functional currency, and figures are rounded off to the nearest million
yen.
(Significant accounting policies)
The significant accounting policies adopted for the condensed consolidated financial statements of the
Olympus Group for the six months ended September 30, 2019 are the same as those applied for the fiscal
year ended March 31, 2019 with exception of the items described below.
The Olympus Group has adopted IFRS 16 “Leases” (hereinafter, “IFRS 16”) from the first quarter ended
June 30, 2019. IFRS 16 introduces a single lessee accounting model, instead of classifying leases into
operating leases and finance leases. IFRS 16 requires a lessee to recognize right-of-use assets representing its
rights to use the underlying leased assets and lease liabilities representing its obligations to make lease
payments for all leases, in principle.

(1) Leases as lessee
Lease liabilities are measured at the present value of the total lease payments that are not paid at thecommencement date. Right-of-use assets are initially measured at cost, which comprises the initialamount of lease liabilities adjusted for any initial direct costs, prepaid lease payments and restoration
13

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

costs, etc. Right-of-use assets are depreciated on a straight-line method over the shorter of theirestimated useful lives or lease terms.
The lease term is estimated based on the non-cancelable period and adjusted for optional periods forwhich the Olympus Group is reasonably certain to exercise an option to extend or terminate the lease.
The Olympus Group classifies total lease payments into the principal portion of the lease liability andthe interest portion of the lease payments and recognizes in profit or loss the amount allocated to theinterest portion of the lease payments in each fiscal year that is calculated at a consistent interest rateon the outstanding lease liabilities.
If the contract transfers the right to control the use of an identified asset for a period of time inexchange for a consideration, at the start of the contract, the contract is deemed to be a lease or tocontain a lease.
For short-term leases and leases for which the underlying asset is of low value (“low-value leases”),
the Olympus Group does not recognize the right-of-use assets and lease liabilities but recognizes lease
payments as expenses.
Right-of-use assets and lease liabilities are included in and presented as “Property, plant andequipment” and “Other financial liabilities” respectively on the consolidated statements of financial
position.

(2) Leases as lessor
The Olympus Group classifies lease transactions involving transfer of substantially all the risks andrewards associated with the ownership of the leased assets into finance lease, while classifies othertype of lease transactions into operating lease.
In finance lease transactions, the present value of gross investments in the leases is recognized asrevenue at the commencement of the lease term, and the correspondent amount is recognized as leasereceivables. Unearned finance income is apportioned at a constant rate on the net investment over thelease term and recognized as revenue in the period to which it is attributable.
In operating lease transactions, the relevant leased properties are recognized on the consolidated
statements of financial position, and lease payments receivable are recognized in revenue over thelease terms on a straight-line method.

With the application of IFRS 16, the Olympus Group adopts the method whereby the cumulative effectallowed as a transition measure is recognized at the adoption date. As a result of adopting suchmethod, instead of restating comparative information, the Olympus Group recorded ¥38,499 million oflease-related assets including right-of-use assets and ¥38,499 million of lease liabilities in the
consolidated statements of financial position as of April 1, 2019.
There is no impact for the opening balance of retained earnings because, when recognizing leaseliability, the Olympus Group recognized lease-related assets at an amount equal to the lease liability.
In addition, the Olympus Group measures the aforementioned lease liabilities at the present value by
discounting the remaining lease payments at the lessee’s incremental borrowing rate (rate that would
apply for a borrowing from an external source separately) as of the adoption date. The weighted
average of the lessee’s incremental borrowing rates applied to the lease liabilities recognized in the
consolidated statements of financial position as of the adoption date is 1.13%.

14

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

Reconciliation of non-cancelable operating lease agreements applying IAS 17 at the end of theprevious fiscal year and lease liabilities recognized on the consolidated statements of financial position
as of the adoption date is as follows:(Millions of yen)
Operating lease agreements disclosed on March 31, 201944,262
Operating lease agreements disclosed on March 31, 2019 (after
42,232
discounting with the incremental borrowing rate)
Finance lease obligations (March 31, 2019)
9,035
Short-term leases and low-value leases(896)
Options to extend or terminate the lease that the lessee is reasonably
13,539certain to exercise
Lease agreements entered into before the lease commencement date
(19,896)(Executing date)
Others3,520
Lease liabilities as of April 1, 201947,534In the application of IFRS 16, the Olympus Group has adopted the following practical expedients.
 Applied a single discount rate to a portfolio of lease assets with similar characteristics
 Accounted in the same way as short-term leases for leases with a lease term of 12 months or less
 Excluded initial direct costs from the measurement as of the adoption date for the right-of-use assetsthat existed at the beginning of the fiscal year ending March 31, 2020
 Used hindsight on exercising options to extend or terminate the lease when determining the lease
term(Significant accounting estimates and associated judgments)
In preparing IFRS-based consolidated financial statements, the management is required to make judgment,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets,
liabilities, revenues and expenses. Actual results may differ from such estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis and the effect is recognized in
the period in which the estimates are revised and in future periods.
The details of significant accounting estimates and associated judgments in the condensed consolidated
financial statements are unchanged from the contents described in the consolidated financial statements forthe previous fiscal year.

(Segment information)(1) Overview of reportable segments
The reportable segments of the Olympus Group are the units for which separate financial information
is available and according to which reporting is periodically conducted to decide how to allocate
management resources and assess business performance.
The Olympus Group reorganized its medical business on April 1, 2019, and separated the previous
Medical Business into the Endoscopic Solutions Business and Therapeutic Solutions Business.
Consequently, the Olympus Group has changed four reportable segments: Medical Business, Scientific
Solutions Business, Imaging Business and Others into five segments: Endoscopic Solutions Business,
Therapeutic Solutions Business, Scientific Solutions Business, Imaging Business and Others.
Segment information for the six months ended September 30, 2018 has been modified according to the
new classification.

15

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

The principal products and services of each reportable segment are as follows.
Reportable Segment

Principal products and services

Endoscopic Solutions Business Gastrointestinal endoscopes, surgical endoscopes, endoscopy systems, repair service
Therapeutic Solutions Business Endo-therapy devices, energy devices, urology, gynecology and ENT products
Scientific Solutions Business
Imaging Business
OthersBiological microscopes, industrial microscopes, industrial endoscopes, non-destructive testing
equipment
Digital cameras, voice recorders
Biomedical materials(2) Revenue and business results for reportable segments
Revenue and business results of each reportable segment of the Olympus Group are as follows. The
accounting method used for reportable segments is the same as the accounting policies of the Olympus
Group that are described in “Significant accounting policies.”
Six months ended September 30, 2018
(Millions of yen)
Reportable Segment
Adjustment(Note 2)

Amount oncondensed
consolidated
financialstatements

381,849－

381,849

262

282

(282)

－

25,6783,491

382,131(282)

381,849(9,226)(1,404)

46,860(43,875)

2,985

Endoscopic

Therapeutic

Scientific

Imaging

Others200,812

104,826

47,30425,678

3,229

－

－

20

－

Total revenue

200,812

104,826

47,324

Operating profit (loss)

41,59013,100

2,800

Total

Revenue
Revenue fromoutside customers
Revenue among
segments (Note 1)

Finance income
Finance costs

1,208
6,974

Loss before tax(2,781)Other items
Share of profit (loss)of investments
accounted for using
equity method
Depreciation andamortization
Impairment losses(non-financial assets)

215

－

0

－

－

215

－

215

13,833

8,158

3,457

794

241

26,483

1,889

28,372

－

－

－

－

－

－

105

105

Notes:
1. Revenue among segments is based on actual market prices.
2. Adjustment for operating profit (loss) is corporate expenses that consist of elimination of transactions among
segments as well as general and administrative expenses and fundamental research expenses etc. that are not
attributable to reportable segments.

16

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2020

Six months ended September 30, 2019
(Millions of yen)
Reportable Segment
Adjustment(Note 2)

Amount oncondensed
consolidated
financialstatements

389,189－

389,189

256

289

(289)

－

21,303

3,590

389,478(289)

389,189(5,697)(1,311)

73,411(22,474)

50,937

Endoscopic

Therapeutic

Scientific

Imaging

Others206,789

108,025

49,73921,302

3,334

－

－

32

1

Total revenue

206,789

108,025

49,771

Operating profit (loss)

59,816

15,223

5,380

Total

Revenue
Revenue fromoutside customers
Revenue among
segments (Note 1)

Finance income
Finance costs

943
3,311

Profit before tax

48,569Other items
Share of profit (loss)of investments
accounted for using
equity method
Depreciation andamortization
Impairment losses(non-financial assets)

202

(43)

－

－

－

159

－

159

16,164

9,246

3,562

829

348

30,1493,249

33,398

－

377

－

1,042

－

1,419

223

1,642

Notes:
1. Revenue among segments is based on actual market prices.
2. Adjustment for operating profit (loss) is corporate expenses that consist of elimination of transactions among
segments as well as general and administrative expenses and fundamental research expenses etc. that are not
attributable to reportable segments.

17