Management Resources & ESG

Corporate GovernanceOlympus’ Corporate Governance
Basic Stance toward Corporate Governance All our activities are based on our corporate philosophy, “Making people’s lives healthier, safer and more fulfilling.” Inaccordance with this philosophy, we will work for our shareholders and other stakeholders in order to realize ongoing
corporate growth and medium-to-long-term improvements
in corporate value. This philosophy also drives us to establish,
implement, and continuously improve systems for ensuring
the appropriateness and reliability of financial reports and theeffectiveness and efficiency of operations.
Olympus is continuously strengthening its corporate governance system, positioning this task as a top management
priority. In addition, we endorse the goals of Japan’s Corporate

Governance Code, which was formulated in March 2015 (revised in June 2018), and, in principle, we are complying withand have implemented measures based on the principles of
the code. Through such efforts, we seek to ensure effective
corporate governance based on our fiduciary duty to shareholders; our responsibilities to customers, employees,
communities, and other stakeholders; and the aforementioned
corporate philosophy.

WEB

Corporate Governance Policy:

https://www.olympus-global.com/company/governance/
policy.html

Corporate Governance Structure 
Basic Corporate Governance Policies
In order to enhance the oversight functions of the Board of
Directors, which is membered by a majority of highly independent outside directors, Olympus fills the position of chairman of
the Board of Directors with a director who does not have business execution responsibilities in order to establish a clear
divide between business execution and oversight functions.
In addition, the Nominating Committee and the Compensation
Committee, both of which were established voluntarily by theCompany, consist of a majority of highly independent outside
directors and are also chaired by such directors.
With regard to the composition of the Board of Directors, theCompany considers the diversity of experience, knowledge, andskills of the Board of Directors, regardless of nationalities, ethnicities, and genders of its members. We also secure sufficient
time for meetings of the Board of Directors to ensure that all
directors are able to fulfill their duties and responsibilities.
Overview of the Corporate Governance Structure
The Board of Directors consists of 11 members, six of whom
are outside directors, representing a majority. In principle, theBoard of Directors meets once per month and approves important management proposals made by the president, thehighest authority for executive management, while exercising
appropriate oversight of business execution. The position ofchairman of the Board of Directors is filled by a director who
does not have business execution responsibilities. The term of
directors is set at one year to allow their performance to beevaluated on a yearly basis and to clarify responsibility for thisperformance. Olympus expects the six outside directors toapply their specialized expertise in management by engaging
in decision-making and oversight of the Board of Directors
from an independent perspective.
Furthermore, the Board of Directors requests reports on
matters that are decided by the Executive Management
Committee or by the president. In this manner, the Company isstrengthening governance from the perspectives of sharing
60

One Olympus Report 2018

information and monitoring, thereby creating systems for better
ensuring the soundness of management. Olympus employs an
executive officer system, which segregates the decision-making
function and supervisory function of the Board of Directors fromthe business execution function of executive officers. In addition,
the Company has set a maximum tenure period for the president
and a maximum age for directors and executive officers. These
restraints are in place to prevent inappropriate activities from occurring due to extended tenures of corporate officers. The Articles
of Incorporation stipulate that the number of directors is not toexceed 15. Directors are to be appointed by a majority vote at thegeneral meeting of shareholders when more than one-third of theshareholders able to exercise voting rights are in attendance.
Voluntarily Established Committees
Olympus has adopted the Company with the Board ofCompany Auditors system for its governance system but has
also incorporated aspects of the Company with Nominating
Committee, etc. system by actively pursuing voluntary
improvements in governance functions through the establishment of its Nominating Committee and Compensation
Committee. Furthermore, the Compliance Committee, which ischaired by an outside director, was established as a body tooversee and improve the compliance system.
Overview of the Corporate Governance Structure(As of June 26, 2018)
FormatAdoption of executive officer system
Directors
Of whom, outside directors
Term of directors
Audit & Supervisory Board members
Of whom, outside Audit & Supervisory Board
members
Independent officers
Participation of outside directors in determinationof remuneration
Board of Directors convened
Results-linked remuneration

Board of Company
Auditors systemYes
116
1 year4
2
8Yes
26 times
Yes

Corporate Governance Structure
General Meeting of Shareholders
Appointment / Dismissal

Appointment / Dismissal

Appointment / Dismissal

Cooperation

Audit & Supervisory Board

Board of Directors

2 standing and2 outside Audit &Supervisory Board members

5 directors and6 outside directors

Accounting
AuditorCooperation

Internal Audit Office

Audit

Discussions /Proposals

Chairperson: Non-executive director
ReportReports /Suggestions

ReportOffice of Audit &Supervisory Board

Assistance withdecision-making

Audit

Audit

Compensation Committee
Compliance Committee

Election /Supervision

President and Representative Director

Cooperation

Nominating Committee

Executive Management
Committee
Chairperson: President
Observers: Auditors

CSR Committee

Functional divisions, business units, corporate divisions, and Group companies

Overview of Each Board and Committee
Name

Chairperson

OutlineTimes conducted(FY2018)

The Board of Directors approves important management proposals made by theNon-executive director president, the highest authority for executive management, and exercises appropriate oversight of business execution (meets once per month, in principle).

26

Standing Audit &Supervisory
Board member

The Audit & Supervisory Board monitors and supervises the execution of duties bydirectors and oversees the Company’s management systems. It also shares
opinions with the accounting auditor in relation to annual audit plans, matters pertaining to annual financial results, and year-end audit reports (meets once permonth, in principle).

30

Executive Management
Committee

President

The Executive Management Committee consists of members who include thepresident and heads of functional organizations as well as Audit & Supervisory
Board members, who attend meetings of this committee as observers. These
members discuss important management matters to aid the president in decisions
related to these matters (meets three times a month, in principle).

46

Nominating Committee

Outside director

The Nominating Committee comprises at least three directors selected by the
Board of Directors and discusses the nomination of directors and Audit & Supervisory Board members as well as matters related to human resources.

9

Compensation Committee

Outside director

The Compensation Committee is composed of at least three directors selected by
the Board of Directors and discusses matters related to director compensation.

8

Compliance Committee

Outside director

The Compliance Committee examines important matters related to Group compliance and internal control systems as well as compliance-related matters for which
the Board of Directors requests advice. The findings are reported to the Board of
Directors.

4

CSR Committee

Executive officer

The CSR Committee checks and issues reports on CSR plans, measures, andinitiative progress and also deliberates on matters as deemed necessary by thechairman. The results of these activities are reported to the president and the
Executive Management Committee (meets twice a year, in principle).

2

Board of Directors

Audit & Supervisory Board

Composition of Committees
Name

Position

Hiroyuki Sasa

President

Kiichi Hirata

Director

Sumitaka Fujita

Nominating Committee (5)Outside director (Chairman)

Takayuki Katayama

Outside director

Susumu Kaminaga

Outside director

Michijiro Kikawa

Outside director

Tetsuo Iwamura

Outside director

Yasumasa Masuda

Outside director

Compensation Committee*1 (5)Compliance Committee*2 (5)(Chairperson)(Chairperson)(Chairperson)*1 Election of chairman through mutual voting at the first meeting of the Compensation Committee.
*2 In addition to the two members described above, the members of the Compliance Committee also include the Chief Compliance Officer and external members.

One Olympus Report 201861

Management Resources & ESG

Corporate GovernanceOutside Directors and Audit & Supervisory Board Members 
Olympus has strengthened the corporate governance structure by appointing six outside directors, representing morethan half of its 11 directors, and utilizing their objective standpoint, wealth of experience, and extensive knowledge ofmanagement. Furthermore, Olympus has increased theobjectivity and fairness of management oversight by appointing
two outside Audit & Supervisory Board members out of thefour Audit & Supervisory Board members.
Outside directors and Audit & Supervisory Board members
receive reports from the Group’s Internal Audit Office about

Outside directors

internal audits at Board of Directors’ meetings. Outside Audit &Supervisory Board members also receive reports from both theInternal Audit Office and the accounting auditor at Audit &Supervisory Board meetings. In addition, outside Audit &Supervisory Board members meet with staff from the Internal
Audit Office and the accounting auditor to share opinions andotherwise coordinate their efforts. Furthermore, all six outside
directors are independent directors and both outside Audit &Supervisory Board members are independent officers.

Reason for appointment

Attendance at meetings of the Board of
Directors (Met 26 times in FY2018)

Sumitaka Fujita*

Mr. Fujita was appointed so that his extensive experience and diverse knowledge as a business
manager at ITOCHU Corporation may be applied to the Company’s management.

26/26

Takayuki Katayama*

Mr. Katayama was appointed so that his extensive experience and diverse knowledge as abusiness manager at Teijin Limited may be applied to the Company’s management.

23/26

Mr. Kaminaga was appointed so that his extensive experience and diverse knowledge as
Susumu Kaminaga* a business manager at Sumitomo Precision Products Co., Ltd., may be applied to theCompany’s management.

26/26

Michijiro Kikawa*

Mr. Kikawa was appointed so that his extensive experience and diverse knowledge as abusiness manager at Hitachi Construction Machinery Co., Ltd., may be applied to the­Company’s management.

26/26

Tetsuo Iwamura*

Mr. Iwamura was appointed so that his extensive experience and diverse knowledge as abusiness manager at Honda Motor Co., Ltd., may be applied to the Company’s management.

20/20

Yasumasa Masuda*

Mr. Masuda was appointed so that his extensive experience and diverse knowledge as abusiness manager at Astellas Pharma Inc. may be applied to the Company’s management.

Outside Audit &Supervisory
Board members

Appointed from FY2019
Attendance at meetings of the Board of
Directors and the Audit & Supervisory Board

Reason for appointment

Attendance at meetings
Audit &of the Board of Directors
Supervisory Board(Met 26 times in FY2018) (Met 30 times in FY2018)

Katsuya Natori*

Mr. Natori was appointed so that his extensive experience and diverse knowledge as a business
manager at Sun Microsystems, Inc., Fast Retailing Co., Ltd., and IBM Japan, Ltd., as well as hisdiverse knowledge as an attorney may be applied to the Company’s management.

23/26

27/30

Atsushi Iwasaki*

Mr. Iwasaki was appointed so that his extensive experience and diverse knowledge as acertified public accountant may be applied to the Company’s management.

24/26

29/30

* Independent officers

Process for Appointment of Directors and Audit & Supervisory Board Members When selecting candidates for the position of director, theNominating Committee discusses and interviews director candidates while referencing appointment standards and provides
opinions and advice to the Board of Directors. Based on such
opinions and advice, director candidates are selected by the
Board of Directors, and directors are appointed by a resolution
at the general meeting of shareholders.
When selecting candidates for the position of Audit & Supervisory Board member, the Nominating Committee receives

input from the Audit & Supervisory Board and then discusses
and interviews auditor candidates while referencing appointment standards and, after obtaining the consent of the Audit& Supervisory Board, provides opinions and advice to theBoard of Directors. Based on such opinions and advice,
Audit & Supervisory Board member candidates are decided
by the Board of Directors, and Audit & Supervisory Board
members are appointed by a resolution at the general
meeting of shareholders.

Development and Selection of Successors for the President 
The president recognizes that the development of successors
is among their most important duties and takes steps to foster
executive officers as successor candidates. The Nominating
Committee monitors the development process and provides
any necessary advice. As for selecting the successor, the62

One Olympus Report 2018

Nominating Committee discusses whether the candidates,
including those from outside the Company, are suited for the
position of president and provides opinions and advice to theBoard of Directors. Thereafter the successor is decided by the
Board of Directors.

Standards for Judging the Independence of Outside Directors andOutside Audit & Supervisory Board Members 
The Company has established its Standards for the Independence of Outside Directors and Outside Audit & Supervisory
Board Members in order to put forth clear policies for judging
the independence of outside directors and outside Audit &Supervisory Board members. Prior to the decision by the
Board of Directors, the Nominating Committee, which ismembered by a majority of outside directors, evaluates theindependence of each candidate and provides its opinions andadvice to the Board of Directors in order to aid in its decision.
Corporate Governance Report:

https://www.olympus-global.com/company/governance/
pdf/report_of_corporate_governance_2018.pdf

Strengthening of Audit and Supervisory Functions 
Olympus has adopted the Company with the Board of Company
Auditors system. To guarantee the strength of monitoring functions, two of the four Audit & Supervisory Board members areoutside Audit & Supervisory Board members. Olympus has established the Office of Audit & Supervisory Board to support Audit& Supervisory Board members and assigned full-time employees to assist with their work. In principle, the Audit & Supervisory
Board, like the Board of Directors, meets once per month.
In accordance with the Rules of the Audit & Supervisory
Board and the Audit & Supervisory Board members’ Audit
Standard, Audit & Supervisory Board members attend important meetings, including Board of Directors’ meetings, andperiodically exchange opinions with directors and executive

officers. In principle, they exchange opinions with therepresentative director four times per year. Furthermore, theaccounting auditor periodically provides explanations aboutannual audit plans, matters regarding quarterly financial
statements, and year-end audit reports. Forums for exchangesof opinions are also held as necessary. In addition, Audit &Supervisory Board members will voice opinions to the Boardof Directors with regard to important matters pertaining tomanagement decisions as they deem necessary while
overseeing the Company’s management systems. Moreover,outside Audit & Supervisory Board members offer input basedon their respective areas of specialty while working to enhance
the management oversight function.

Policies for Holding Stocks for Purposes Other Than Pure Investment andExercise of Related Voting Rights 
The Company holds shares of listed stock for purposes otherthan pure investment in cases in which such holdings have been
deemed viable for contributing to improved corporate value overthe medium-to-long term after verifying the medium-to-longterm economic rationality of such holdings and the outlook forthe future. Each fiscal year, the Board of Directors verifies theappropriateness of individual holdings through a comprehensive
evaluation of factors, including the purpose of a given holding
and the benefits and risks associated with said holding. Thoseholdings that are deemed unsuitable will be downsized.
The Company exercises its rights as a shareholder in relation

to stocks held for purposes other than pure investment by voting
on all applicable proposals. In this voting, the Company decides
whether to vote in favor of or against each proposal based on
the circumstances surrounding the management of the company
in question as evaluated from the perspective of improving thecorporate value of this company over the medium-to-long term.
Stocks Held for Purposes Other Than Pure Investment
FY2016FY2017

Number of holdings

64

57

FY201848

Amounts of holdings (billions of yen)

68.0

27.9

26.9

Initiatives for Strengthening Corporate Governance System (Changes)
Structure of Board of Directors

Internal Control / ComplianceCorporate Officer Compensation

Prior to institution of new management teamDirectors: 15 (3 of whom were outside directors)
April 2012, institution of new management teamDirectors: 11 (6 of whom were outside directors)
June 2016
Directors: 13 (8 of whom were outside directors)

April 2012–
Chief compliance officer appointed
Compliance committee chaired byoutside director establishedInternal whistle-blower system that isCompliance Helpline (external) enhanced

June 2013
Stock option system introduced

April 2016–
Internal Control Department established

June 2017
Restricted share and performance-linked sharebased compensation systems introduced

June 2015
Directors: 10 (5 of whom were outside directors)
June 2016–PresentDirectors: 11 (6 of whom are outside directors)

One Olympus Report 201863

Management Resources & ESG

Corporate GovernanceInitiatives for Realizing Effective Corporate Governance 
Since the institution of the new management team in 2012, Olympus has been continuously strengthening its corporate governancesystem and enhancing its effectiveness, positioning these tasks as top management priorities.
Evaluation Results Regarding the Effectiveness of theBoard of Directors
To increase the effectiveness of the Board of Directors andimprove corporate value, the Company institutes annual analyses and evaluations of the overall effectiveness of the Boardof Directors. Third-party perspectives are employed as part ofthis process. The results of these analyses and evaluations
are disclosed. These evaluations have been held every year
since fiscal 2015, and the fiscal 2018 evaluation was the
fourth such evaluation.
Evaluation Results for Effectiveness of the Board of Directors:

https://www.olympus-global.com/company/governance/board.html

Method of Evaluation
In cooperation with an external consulting firm, the Company
prepared a questionnaire on the effectiveness of its Board of
Directors and individual committees (Nominating Committee,
Compensation Committee, and Compliance Committee) andtheir relationships with investors and shareholders. This questionnaire was distributed to each director (11) and Audit &Supervisory Board member (4), and the Company received
answers from all of the respondents. With these replies fromdirectors and Audit & Supervisory Board members as well as
feedback from the external consulting firm, the Company did
an analysis and evaluation regarding the effectiveness of its
Board of Directors.

Evaluation Items, Issues, and Status of Improvement
Evaluation Items
1. Fulfillment of the functions of the Board of Directors
2. Composition and actual operation of the Board of Directors
3. Important committees

4. Support system for outside directors
5. Expectations for the roles of corporate auditors
6. Relationships with investors and shareholders

Issues Identified in Fiscal 2017

Status of Improvement in Fiscal 2018(1) More active discussions, particularly
with regard to the ideal form of global
management (including the ideal formof the Board of Directors)(1) Discussions were conducted among members of the Board of Directors, achieving a certain
degree of improvement, but the ideal form of global management will be an important topic forongoing discussions going forward.

(2) Methods for incorporating a wider
range of viewpoints into committees(Nominating Committee andCompensation Committee)(2) Following discussions held among members of the Board of Directors in September 2017, one
additional internal director and one additional outside director were appointed to the Nominating
Committee and the Compensation Committee, respectively, bringing the membership of eachcommittee to five.

Issue Identified in Fiscal 2018

Accomplishment of ideal form of global management

The issue listed to the left was identified in fiscal 2018, andongoing discussions will be held with regard to this issue. The
Board of Directors will pursue higher levels of effectiveness byformulating and instituting measures to address these issues
while continuing to implement prior improvement measures.

Status of Responses to Issues Identified through Evaluation of Board of Directors
Operation of the Board of Directors
June 2016–
More extensive discussion on important
medium-to-long-term issues
June 2017–
 evision of agenda items for Board ofR
Directors’ meetings and delegation of authority
for certain items to executive officers
Improvement of proposal and report
documents
 ntrenchment of practice of reviewingEmaterials prior to meetings and enhancementof pre-meeting explanations to secure time
for discussions

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One Olympus Report 2018

Relationship with Shareholders andOther Investors
June 2016–
Development of framework for periodically
relaying capital markets’ evaluations of
Olympus to the Board of Directors

Promotion of Diversity within the Company
June 2017–
Appointment of non-Japanese senior
managers of subsidiaries in the Americas andEurope as executive officers to reinforce global
executive management teamCorporate Officer Compensation 
Our basic policy for corporate officer compensation is to provide compensation that is appropriate based on the duties of officers andthat instills in them a strong commitment to maximizing corporate value so that the Company may live up to shareholder expectations.
Corporate Officer Compensation in Fiscal 2018
Position

Total value of
remuneration(¥ million)

Base

Bonuses

Stock options

Directors (excluding outside directors)

430

255

146

29

—

5

Audit & Supervisory Board members*

56

56

—

—

—

3

Outside officers

110

110

—

—

—

9

Total compensation by type (¥ million)
Retirement
benefits

Number of directors /Audit & Supervisory
Board members* Excluding outside Audit & Supervisory Board members

Policies for Determining Corporate Officer Compensation
and Calculation Methods
The Company introduced a performance-linked share-based
compensation system in June 2017. Compensation for directors, excluding outside directors, comprises monthly salaries,
bonuses provided as a short-term incentive plan, and restricted
share and performance-linked share-based compensation
provided as a long-term incentive plan. Monthly salaries are set
according to the base compensation for each position andfactors such as the degree of contribution to the Company byeach individual director. The amount of the total bonus is decided upon taking into consideration consolidated operating
income (excluding other income, other expenses, and share of
profit (loss) of investments accounted for using equity method)
for the applicable fiscal year. Restricted share compensation isprovided on the condition that the individual will continue toserve as a director of the Company over a predefined period,
whereas performance-linked share-based compensation islinked to the achievement of predetermined performance targets. These systems issue common shares of the Company’s
stock to applicable directors as a form of compensation that is
separate from monthly salaries and bonuses. The goals ofthese systems are to provide incentives for directors to work
toward the ongoing improvement of corporate value and tohave directors further share value with shareholders. The totalof restricted share compensation and performance-linked
share-based compensation approved at the general meeting ofshareholders for fiscal 2017 is up to ¥500 million and 150,000
shares, 82% of which will be attributable to performance-linked
share-based compensation. Outside directors only receive
monthly salaries and are not eligible for bonuses, restricted
share compensation, or performance-linked share-based
compensation. Audit & Supervisory Board members only
receive monthly salaries, which are determined throughdiscussion among Audit & Supervisory Board members, andare not eligible for bonuses, restricted share compensation,or performance-linked share-based compensation.
Compensation of Directors (Excluding Outside Directors)
by TypeType of compensation
Ratio
Fixed
Monthly
50%
compensation: salaries
Short-term
Bonuses25%
incentives
Variable
Restricted share
6%
50%
compensation: Long-term compensation
25%
incentives Performance-linked
19%
share-based compensation
Total
100%
Note: Ratios of variable compensation by type assume 100% of all performance targets havebeen accomplished.

The following formulas will be used for calculating the compensation to be paid to directors in fiscal 2019.
Calculation Method for Director Bonuses
1 	Total Value of Remuneration = [Consolidated operating income (excluding other income, other expenses, and share of profit (loss) of investments accounted for using equity method) in
fiscal 2019 – ¥30.0 billion] × 0.22474%
× (Total sum of “officer points” for all applicable directors ÷ 663) (rounded to the nearest ¥10,000)
2 	Individual Compensation = Total value of remuneration ÷ Total sum of “officer points” for all applicable directors × “Officer points” of individual director (rounded to the nearest ¥10,000)
Calculation Method for Performance-Linked Share-Based Compensation
Upon the conclusion of a defined three-year period, a number of common shares of the Company’s stock will be issued to directors that is equivalent to a predetermined amount after thatamount has been adjusted within the scope of 0%–150% based on the degree to which performance targets for the three-year period were accomplished.
1 	Total Value of Shares to Be Issued = [(Total net income over three-year period – ¥145.9 billion) × 0.047682% + (Average net sales growth over three-year period – 3.2%) ×¥932,343,750] × (Total sum of “officer points” for all applicable directors ÷ 663)
2 	Total Number of Shares to Be Issued
	The total number of shares to be issued will be determined by dividing the total value of shares to be issued calculated in 1 above by the closing price for common shares of theCompany’s stock on the Tokyo Stock Exchange on the day prior to the resolution by the Board of Directors on the allocation of said common shares of the Company’s stock (if thestock exchange did not conduct transactions on this day, the closing price from the most recent day on which transactions were conducted will be used)3 	Number of Shares to Be Issued to Individual Directors = Total number of shares to be issued ÷ Total sum of “officer points” for all applicable directors × “­Officer points” of the individual

Officer Points
ChairmanPresident andRepresentative Director

Director, Vice President

Director, Senior Executive
Managing Officer

Director, Executive
Managing Officer

Director,
Managing Officer

165

210

147

108

90

76

One Olympus Report 201865

Management Resources & ESG

Corporate GovernanceInternal Controls to establish and maintain a risk management system at the
Olympus Group. Moreover, pursuant to the internal Rules on
Risk Management and Crisis Response, each department incharge in the Company and the subsidiaries shall be aware ofrisks and take preventative measures, and the Company has aframework that enables prompt actions in the event of an
emergency. In the event of an earthquake, fire, other natural
disaster, accident, corporate ethics violation, or occurrence ofanother high-risk incident, the department in charge shall make
immediate reports to the president, other members of the
Executive Management Committee, and relevant people.
Response measures will then be decided by the president.

Framework to ensure the compliance by directors andemployees of the Company and its subsidiaries, in the­performance of duties, to applicable laws and regulations
as well as the Articles of Incorporation:
Compliance Committee
	The Company shall establish the Compliance Committee
chaired by an outside director as a body to oversee andimprove the compliance system.
CSR Committee	Olympus shall set up the CSR Committee with the president
responsible for CSR and chaired by the officer in charge of
CSR, and regularly hold meetings to plan CSR activities for
the Olympus Group and set objectives for and evaluate
these activities.
Internal Audit Office	Olympus shall establish the Internal Audit Office to directly
report to the president. The Internal Audit Office shall,pursuant to the provisions of the Internal Audit Regulations,conduct internal audits of the Company and its domestic
subsidiaries with respect to compliance with laws andrules, the Articles of Incorporation, internal rules andregulations, the appropriateness of business execution
procedures and details, and other matters.

Framework to ensure the effective performance of duties bydirectors of the Company and its subsidiaries:1 	The Board of Directors shall approve medium- and long-term
corporate strategic plans in which the business objectives of
the Olympus Group are set forth, and action plans for these,
which are called annual business plans. In addition, the Boardof Directors shall receive a monthly report on business performance in order to evaluate the status of the Company’s annual
business plan.
2 	The Board of Directors shall determine the separation of duties

among the president and other operating directors and approve
the separation of duties of executive officers. In addition, the Boardof Directors shall receive reports on their duties as performed.

Rules relating to the risk management of the Company and its
subsidiaries in the event of loss and other circumstances:1 	The Company shall manage the business risks of the ­Olympus

3 	Based on internal corporate rules including the internal rules onGroup based on thorough discussions held at meetings ofthe Board of Directors and the Executive Management
Committee, among other meetings, and ­appropriate internal
approval procedures.

approval procedures and organizational matters, the Board of
Directors shall approve the management ­organization and theseparation of duties, as well as the responsibility and authorityof each representative director, other operating director, andexecutive officer, and receive reports from major management
organizations on their duties as performed.

2 	The Company shall manage risks, such as those relating toquality, product safety, export control, information security,
occupational health and safety, the environment, and disasters,
by defining responsible divisions, establishing internal corporate rules, working for risk management as the Olympus
Group, and implementing related education and training.

4 	The Company has defined the Group’s fiscal rules, which lay

down the fiscal policy that is the cornerstone of the Olympus
Group’s financial management, and is strengthening thegovernance of the Group in fiscal terms while controlling andmanaging funds, foreign exchange, and transactions with financial institutions for the entire Group, including subsidiaries.

3 	The CSR Committee shall report and deliberate on plans andmeasures in relation to risk management and make efforts

Global Framework of Internal Rules
Olympus has established a platform for managing internal rules in order to ensure the ongoing improvement of management quality from theperspective of global governance and management.
Corporate Philosophy
Corporate Conduct Charter / Code of Ethics
Global Rule Structure
GHQ
Corporate Governance
Rule

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One Olympus Report 2018

OGR (Olympus Global Rule)
Regional Rules

Global Business Rule

Local Rules (Entity, Business, Organization)

Basic Policy on Information Disclosure 
In addition to conducting appropriate disclosure as mandatedby laws and regulations, the Company also strives to transmit
information in various forms on its own accord in order toensure the transparency and impartiality of decision-making
and realize effective governance. These forms include Olympus’
corporate website, integrated reports, and shareholder newsletters as well as voluntarily released timely disclosure
documents. In issuing these communications, directors takecare to ensure that all information disclosed is not only easy tounderstand but also valuable to the target recipients. Furthermore, as a large portion of the Company’s shareholders are
not Japanese, we provide English-language versions for the
majority of these information disclosures.
Communication with Stakeholders
Seeking to facilitate sustainable growth and medium-to-

long-term improvements in corporate value, the president
and the chief financial officer (CFO) play a central role in our
proactive efforts to communicate with shareholders. Investor
relations divisions support these efforts and create systems forsharing information within the Company and relaying input
from shareholders to management.
Furthermore, to protect the rights of shareholders, convocation notices for the general meeting of shareholders are sent at
the earliest date possible and are made to include a comprehensive range of information. In addition, English-language
versions of convocation notices are uploaded onto theCompany’s corporate website, and we take other steps toguarantee that such information is provided fairly to all shareholders, including those overseas, and thereby ensure thatshareholders have ample information and sufficient time toproperly exercise their voting rights.

Investor Relations (IR) Activities 
The following investor relations activities were conducted in fiscal 2018.
Activity

Times conducted

Details

4

Meetings or teleconferences held quarterly to explain topics from the period, focused on financial performance and forecasts

Investor Day

1

Events featuring explanations of the growth strategies of each business and product exhibitions

Facility tours and study sessions

1

Tours and study sessions of plants, repair centers, training centers, and other facilities

Conference calls for overseas institutional
investors

4

Teleconferences with overseas institutional investors held on the day of financial resultspresentations for each quarter

Overseas IR roadshows

6

Meetings for institutional investors in which the president and the CFO visit overseas sites

Conferences held by securities companies(including overseas conferences)5

Participation in and meetings at conferences held by securities companies in Japanand overseas

Meetings for individual investors

4

Meetings held at branch offices of securities companies and online

Conferences on results for institutional
investors and analysts

Individual meetings with institutional investors and analysts

Approx. 400

Individual meetings held with the president, the CFO, and/or investor relations division
representatives (including meetings conducted at overseas IR roadshows and conferences)

Outside Evaluation
NIKKEI Annual Report Awards 
FY2014 / FY2015 / FY2016 / FY2017: “Award for Excellence”

Inclusion in ESG Indexes (As of July 2018) 
FTSE4Good Index Series
FTSE Blossom Japan Index
Morningstar Socially Responsible Investment Index

CDP 
Scored A– in climate change by CDP, an international
nongovernmental organization promoting the realizationof a sustainable economy

DISCLOSURE INSIGHT ACTION

One Olympus Report 201867

Management Resources & ESG

Corporate GovernanceCompliance
Promotion of Compliance 
The Olympus Group strives to foster an environment within
the organization in which no concern pertaining to compliance will be ignored, under any circumstances. At the sametime, it maintains an understanding of the status of compliance systems and works to strengthen these systems.
Realizing the immense responsibilities of the Company’s
Medical Business due to its provision of items related directly
to people’s lives, Olympus is committed to maintaining impeccable levels of product safety and quality. The Company
has also established its own internal rules to ensure compliance with the various regulations in place in countries
worldwide, and it is promoting awareness and conducting
training with regard to these rules.

Compliance Promotion Structure
Olympus has appointed a chief compliance officer (CCO)
whose task is to clarify compliance-related responsibilities.
We have also established the Compliance Committee,
chaired by an outside director and consisting of the CCO
and independent members, to advise the Board of Directors.
The Compliance Committee works to strengthen complianceinitiatives through its meetings, which are normally held every
quarter. Olympus holds quarterly meetings of Global Compliance Committees for compliance officers from each regional
headquarters worldwide. The purpose of these committees
is to implement compliance-related policies and measures,
identify issues, and enforce countermeasures as required,both globally and regionally.

Compliance Promotion System (As of August 31, 2018)
General Meeting of Shareholders
Compliance Committee
Members: Outside directors, Non-Olympus members, CCO

CCOAmericas

Asia

Board of Directors
President

Executive
Management Committee

Global Compliance Committees
Members: CCO, Regional compliance officers
EuropeInstructions / Advice

Reports / Proposals

Requests

Reports

Reports / Proposals

China

Actions undertaken by the compliance organization within each region

CSR CommitteeJapan

Each Organization

Compliance Promotion Committee

Message from the Chief Compliance Officer (CCO)

Caroline West
Chief Compliance Officer

Our most recent fiscal year saw steady progress toward
our 16CSP goals. Collaboration and communication were
key for the team this year, exemplified by the launch of“Compliance Square”—a collaborative tool to support thesharing of materials and best practices across the regionalgroups. Progress was also achieved throughout the different regions. Enhancement of the China Complianceprogram was a key focus, with employee training andengagement being key components of that effort. The
Japan Compliance team engaged the business in risk

68

One Olympus Report 2018assessment process, designed to assure that the differingrisks of the entities were identified and addressed. Europe/ Middle East / Africa focused on developing a compliancemonitoring plan and preparing for the new General Data
Protection Regulation (GDPR). The Asia Pacific region
advanced the program through strategic staffing,enhanced training and a strong focus on developing thecountry programs in the diverse region. Finally, the Americas worked in collaboration with the business to enhancethe oversight and management of third-party distributors.
Going forward, in alignment with our global Core
Values, Compliance is committed to supporting Olympus’
efforts to act with integrity as we earn the trust of our
stakeholders. We are also mindful of the important role wecan play in assuring agility. As such, we will always “dothe right thing, the right way” without sacrificing efficiency
and responsiveness.

Risk Management
Promotion of Risk Management 
Olympus has established the internal Rules on Risk Management and Crisis Response based on which it develops global
risk management systems to mitigate business risks.

President
Risk management leader

Department task force(Mobilized in the event of a crisis)
CSR Committee

Risk Management
In relation to the single-fiscal-year activity themes defined
based on the strategies for that year, the Olympus Group will
evaluate risks in line with uniform standards to facilitate theefficient and effective formulation of priority measures. A system is in place to track and periodically monitor progress withregard to priority measures identified as Group-level themes.
The Group has also begun efforts to standardize risk management processes to ensure that processes carried out forregion-specific activity themes are consistent across theGroup. These initiatives make it possible to improve the accuracy of efforts to appropriately control risks on a Groupwide
basis by utilizing shared risk assessment and incident information based on uniform standards.

Risk management operations
general manager

Risk Management Promotion
Committee

Functional organizations, business units, head office departments,
Group companies

Crisis Management
As crisis management measures, we continue to refine risk
management processes and carry out training and drills toenhance preparedness for risks that threaten to have a particularly large impact on the Company, such as large-scale
earthquakes and cyber-attacks.
Countermeasures for large-scale earthquakes in Japan
included e-learning programs for all employees as well as
disaster response drills carried out by both management andfrontline employees to guarantee that we can furnish a smooth
initial response to emergency situations. We are in the processof enhancing the business continuity plans that detail restoration processes in all business fields.

Major Business Risks
Risks and Potential Impacts

Risk Overview

Risks associated with sales activities
Medical Business: Unexpected operating environment changes or inability to obtain licenses and approvals
in a timely mannerScientific Solutions Business: Shrinking government budgets or reduced supply of systems for research
Risks that impact earnings

Imaging Business: Rapid market contractions that exceed anticipations
Risks associated with production and development activities
 oreign exchange rate movements, product defects, or issues with new product development or intellectualF
property rights
Other general risks
Risks associated with production and development activities

Risks that impact production activities,
manufacturing, or supplies

 verseas production: Foreign exchange rate movements, destabilization of conditions at the national level,Odeterioration of public safety rocurement: Procurement constraints for products or parts for which the Company is dependent on specificPsuppliersRisks associated with business partnerships and development acquisitions

Risks that impact business activities,
performance, or financial position

Risks associated with leakage of information
Risks associated with deferred posting of past losses
Risks associated with internal control systems, etc.
Risks relating to duodenoscopes in the United States

Risks that impact financing

Risks associated with financing

Risks that restrict sales ormarketing practices

Risks relating to laws and regulations
Changes in legal interpretations or applications affecting the healthcare industry
Risks relating to laws and regulations

Risks that impact operations, financial
position, performance, cash flows,or stock prices

Restrictions on reimbursement under public health insurance or on access to government medical subsidies
 anctions relating to violations of the Anti-kickback Act, the False Claims Act, or the Foreign Corrupt
S
Practices Act of the United States
Prosecutions related to alleged violations for which deferred prosecution agreements were concluded

One Olympus Report 201869

Management Resources & ESG

Corporate Governance

CSR Management
Basic Policy Regarding CSR 

CSR activities:

https://www.olympus-global.com/csr/

Social demands and expectations

CSR = Development of both society and Olympus* Local communities and the international community include general citizens, NGOs, NPOs,
the government, and international organizations.

CSR Concept of the Olympus Group

Duties andresponsibilities
to society

Through its CSR activities, the Olympus Group responds tothe needs and expectations of society and fulfills its obligations
and responsibilities.
We believe that to justify the continuing existence ofOlympus as a company and contribute to making people’s
lives healthier, safer, and more fulfilling, we must fulfill our
responsibilities through dialogue with all stakeholders (persons
and organizations with whom we interact through our businessactivities), including customers, suppliers, shareholders andinvestors, as well as employees and their families, local
communities,* and the international community.*

Contribution to Society
through BusinessContribution to Society
through Other
Voluntary Activities

By providing needed value tosociety and producing profits
through business

By investing in society andestablishing a meaningful
relationship with it

Customers

Business
partners

Employees
and theirfamilies

Shareholders

Localcommunities

International
communities

Fulfilling all obligations through compliance with laws,
regulations and business ethics
EconomySocietyThe
Environment

CSR Promotion Structure 
To enhance its CSR structure, Olympus established the
CSR Committee in FY2011. Under the umbrella of this CSR
Committee, Olympus has set up a number of promotion
committees to plan and advance individual CSR-related
initiatives. The CSR Committee is chaired by the CSR
division manager and its members include managers fromeach functional organization.
Olympus aims to spread and entrench CSR throughout
the Group by having the CSR Committee support the decisions made by the president, who is ultimately responsible
for CSR, and overseeing the promotion and progress ofimportant matters.

CSR Committee and Promotion Committees
CSR Committee
Risk Management Promotion Committee
Information Security Promotion Committee
CSR Procurement Promotion Committee
Safety & Health Promotion Committee
Social Contribution Promotion Committee
Environmental Promotion Committee
Grants Committee

Procurement Activities (Supply Chain) 
The Olympus Group aims to strengthen supply chain management (SCM) within the context of business continuity andsustainable value creation in its three business segments: theMedical Business, the Scientific Solutions Business, and the
Imaging Business.
In 2005, Olympus formulated the Olympus Group Procurement Policy. Since then, Olympus has disclosed its basic
stance on procurement both internally and externally throughits website and training sessions, while strengthening compliance with laws, regulations, and social norms. We have also

drawn up the “Request to Suppliers” as a guideline forcomplying with laws, regulations, and social norms, including
respect for human rights and the elimination of antisocial
forces, prohibiting corruption and bribes, promoting fair andjust transactions, and taking the environment into consideration. Based on these two principles for procurement
activities, Olympus strives to create and strengthen good
relationships with its suppliers through fair, just, andtransparent transactions.

System and Framework

70

Share business strategies and procurement policy

Once a year, the Procurement Policy Meeting is held for the purpose of sharing the business strategies
and procurement policy of the Olympus Group. In fiscal 2018, 855 representatives from 520 suppliers
participated and we explained compliance matters.

Supplier survey

Once a year, Olympus conducts a web-based survey of its main suppliers in Japan and overseas. In
fiscal 2018, a survey was conducted on roughly 1,000 companies, including overseas suppliers.
Responses were received from approximately 95% of participants.

One Olympus Report 2018

Quality and Safety Olympus has established its Olympus Group Quality Policy
based on the Olympus Group Corporate Philosophy and the
Olympus Group Corporate Conduct Charter. The policy wasrevised in October 2017 to define the Group’s basic policy
direction in activities aimed at improving quality and safety, andto define a code of conduct to ensure the utmost focus on
quality, which defines the fundamental direction of the Group’s
quality activities to provide products and services for societythat are beneficial, safe, and of high quality.
In fiscal 2019, we have been focusing on greater employee

awareness of quality and improvements in business operations
to ensure products that are safe and of high quality and tostrengthen the product-related statutory compliance process.

Olympus Group Quality Policy

3. Constant Quest for Quality
	We will never be content with the status quo when it comes to thequality of all relevant business processes, which will boost the safety
and quality of our products and services.

The Olympus Group will pursue value that is genuinely wanted by ourcustomers, act with the utmost focus on quality, and will sustainably
deliver safe products and services that are useful to society.
To this end, the Olympus Group will continue to maintain and improvethe effectiveness of its quality management system in full conformancewith regulatory requirements.

Code of Conduct for Ensuring the Utmost Focus on Quality
1. Customer-Centric Approach	We will keep our customers and patients in mind, fully focus on theirsafety and needs, and act in a sincere manner.
2. Ensuring Compliance with Laws, Regulations, and Social Norms
	We will strive to fully and correctly understand and comply with all
relevant laws, regulations, and social norms, as this understanding
and compliance forms the foundation for the delivery of safe, reliable
products and services to our customers and patients.

4. Appropriate Communication
	We will provide useful and accurate information in an appropriatemanner to our customers and patients in order to ensure their safety
and peace of mind.

Personal Information Protection 
Olympus protects personal information concerning all of its
stakeholders, including its customers, using appropriate methods and, in order for proper handling to be performed, clarifies
its policies relating to information protection in the Olympus
Group Code of Ethics.
With regard to the creation of a personal information database in Japan, in addition to incorporating a system forobtaining the prior approval of the administrator in eachdepartment, we utilize a personal information management
register and work to improve the register’s accuracy.

Moreover, we inspect the register on a regular basis to better
understand the actual situation with regard to the managementof personal information. Requests for the disclosure, correction,
or deletion of personal information from customers are accepted at a predetermined point of contact. In response to theenforcement of the EU’s General Data Protection Regulation(GDPR) in May 2018, we reinforced personal information
protection measures by forming a joint protection scheme
coordinated among the regional headquarters in Europe, theAmericas, and Asia and Oceania.

Disclosure of Medical Business Information 
Ethics Committee
Developing and manufacturing medical equipment such as
endoscopes, Olympus held an Ethical Committee meeting andassessed propriety from the points of view of ethics, science,and reliability as well as conflicts of interest in its medical
research to respond to the “Ethical Guidelines for Medical and
Health Research Involving Human Subjects” that came into
effect in April 2015. We ensured the independence of theCommittee by having it comprise internal and external experts
not directly involved in the research. The scope of the assessment included all of the medical research conducted by theCompany and Group Companies in Japan to which the ethicalguidelines apply. We disclose the Committee’s rules, registerand summary of proceedings via registration on the Ethical
Review Committee Reporting System of the Japan Agency for
Medical Research and Development (AMED).

Transparency Guidelines
With the advances in medical technology in recent years,
medical equipment is being used in the diagnosis and treatment of a growing number of patients and has become amajor contributor to the health and welfare of people. On theother hand, efforts to develop new technologies, launch products on the market, and optimize their use after launch require
coordinated efforts with various people in the medical industry.
In paying the expenses incurred, it is essential not only to comply with the relevant laws and regulations, the Olympus Group
Corporate Conduct Charter, and regulations in the medical
equipment industry, but also to increase the transparency ofthese transactions.
Olympus has established “Transparency Guidelines for
Relations between Corporate Activities and Medical Institutions
and Other Organizations” described below and is working toensure and increase transparency based on disclosure of
information on payments made to medical institutions andpersonnel in accordance with the guidelines.

Ethics Committee:

Transparency Guidelines:

https://www.olympus-global.com/csr/effort/ethic/

https://www.olympus-global.com/csr/effort/transparency/

One Olympus Report 201871

Management Resources & ESG

Corporate Governance

Environmental Management
Basic Policy Regarding Environment 
Placing great importance on reducing environmental impacts throughout product life cycles, Olympus is actively working to improvethe environmental performance of its products, facilities, and logistics processes.
Olympus Group Environmental Policy
All our activities are based on our corporate philosophy, “Making people’s lives healthier, safer and more fulfilling.” Following this philosophy, the Olympus
Group respects people’s security and health and the natural mechanisms that realize this. We will contribute to the realization of a sustainable society
and sound environment by working to make the environment and economy compatible in our business operations.
1. Participation by All	Each employee enriches their understanding of environmental activities and each one of us will participate in the environmental activities conductedin consideration of the local features.
2. Promotion of Environmental Management
	We will maintain the environmental management system and mechanism on a global scale so that we can continuously improve our environmental activities.
3. Compliance with Laws, Regulations, and Social Norms
	We will fully comply with the laws and regulations, agreements with our stakeholders, and our voluntary standards in respect to the environment.
4. Reduction of Environmental Impact	Toward the solution of environmental issues, prevention of pollution, sustainable resource use, climate change mitigation and adaptation, andprotection of biodiversity, we will reduce environmental impact through our products, services and business activities.
5. Development of Technologies to Foster Harmony with the Environment	We will develop the technologies that contribute to environmental protection and will make use of the results in our manufacturing processes,
products and services.
6. Attributing Importance to Environmental Communication
	We will proactively dispatch information about our environmental activities within and outside Olympus to deepen mutual understanding with our stakeholders.

System to Promote Environmental Management We have established a unit to promote environmental management within each of our business units and Group companies,
while the Olympus Group Environmental Promotion Division istasked with fostering environmental management across theGroup. Progress on these activities is reviewed by the Board of
Directors and the Executive Management Committee, andmeasures are taken across the Group to achieve our predefined environmental targets. Moreover, our major production
Note: Covered businesses are consolidated Group companies
both in Japan and overseas.

facilities, as well as logistics and sales subsidiaries in Japanand overseas, have ISO 14001 certification, and we are continuously improving our environmental management system throughaudits and by other means. In June 2018, all group businesssites certified with ISO 14001 completed their certification
update to ISO 14001:2015, the revised certification for 2015.
Promotion of Environmental Management:

https://www.olympus-global.com/csr/download/pdf/
csr_db_2018_49_53.pdf

Board of Directors andExecutive Management Committee
PresidentGroup Environmental Management Officer

Olympus Group Environmental Management Division(Olympus Group Environmental Secretariat)

Olympus Group Environmental Committee

Promotion Secretariat for Environmental Activities

Business Group Environmental Management Organizations

Oversight for Environmental Activities

Verification of Deliberation and Progress of Environmental
Activity Policies
Facility Environmental Management Organizations

Local Overseas Subsidiaries

Reinforcement of Environmental Governance Olympus has established an “Environmental Information Management System” to efficiently gather and share environmental
performance data throughout the Group, including data onenergy use and energy-saving efforts made across global sites.
To ensure progress in environmental management, it isessential to monitor environmental efforts and legal complianceat each business site, as well as to have the means to quickly
and accurately grasp the massive amounts of data related toenergy consumption and water use, the volumes of waste
72

One Olympus Report 2018

generated, chemical substances that are emitted andtransferred, and environmental costs. Our “Environmental
Information Management System” enables us to view
environmental activity results at global sites in a timely manner,
assess the progress of our environmental policy, identify any
issues, and implement countermeasures for those issues.
We are promoting environmental risk countermeasures while
helping improve environmental performance.

Management of Environmental Risks Violations of laws and regulations related to chemical substances contained in products, effluent from production bases,
and soil and groundwater contamination are serious environmental risks that can shut down operations, generate recovery
costs, reduce corporate value, or otherwise affect Olympus’
management. Therefore, we maintain and revise rules andregulations for regulatory compliance, educate environmental
promoters, monitor and improve on-site operating practices,and work to reduce environmental risks.
The advance of global warming is causing more frequentcases of extreme weather. As concluded by the Paris Agreement, climate change is a serious environmental factor that
can have a serious impact on business activities. We experience this as business continuation risks deriving from climatechange. For example, we might experience increases inbusiness costs due to tougher CO2 reduction regulations indifferent countries, emissions trading, and carbon taxes.

Or our supply chain may be cut off by ever-more destructive
natural disasters, such as typhoons and floods.
As countermeasures against these risks, we are working to
improve energy use efficiency, increase our use of renewableenergy, and broaden our range of suppliers. Water risk, which is a
global concern, is another factor that may have an impact on ourbusiness operations through increases in business costs due toreinforcement of wastewater regulations and water shortages—
although the scope of those impacts may be limited. We are now
establishing business sites in areas where water is abundant andreducing water use in our business activities as a way of hedging
the risks. To monitor wastewater, we appoint wastewater facility managers and regularly measure our wastewater volumes.
Olympus also sees the business opportunities presented byenvironmental risks and actively develops and sells environmentally conscious products as well as products that contribute to
the resolution of environmental issues accordingly.

Summary of Results of Activities in Fiscal 2018 
Priority Policy

Promotion ofenvironmental
management

Environmental
initiatives
throughout
product life
cyclesTargets

Measures

Results• Completed updating to ISO 14001: 2015
certification at eight domestic business sites
Enhancement• Provided practical training for environmental
Reinforcement of environmentalof environmen­
governance system at global• Respond to ISO 14001 revisions
promotion officers and Environmental Secretariat
tal governancelevel(24 people)
system• Provided training for auditors on the revised ISO
standard (130 persons).
• Completed pollution prevention process• Improved wastewaterinspections at 30 global production sites
management
Continue to improve the process• On-site inspection of compliance with environ• Examined compliance withto comply with environmental
mental laws and regulations at six domestic
environmental laws andEnvironmental laws
non-manufacturing sites
regulations at non-manufacturingrisk reduction• Continue to improve the environmental regulatory
sites
activities
compliance process for products and facilities
HCFCs risk countermeasures
Completed HCFC-containing device survey at
Identify HCFC-containing devices
Replacement planning andeach global site and completed replacement
and create replacement plan
implementation
planning• Implement environmentally• Created environmentally conscious products at
Productrelated
Create Olympus eco-products
conscious designs tailored toall business units (12 new products,
initiatives
each product’s characteristics
584 products in total)
Energy consumption rate: 7.73%
or more reduction in FY2021• Energy consumption rate: Improved 6.6%
(relative to FY2013; in Japan)
Facility-related• Water use rate: 5.9%
Continue manufacturing
Water use rate: Improved relative
initiatives
improvement activities• Waste discharge rate: 0.0% (same as previous
to FY2017year)
Waste discharge rate: Improved
relative to FY2017
Environmental contribution• Conduct environmental contribu- • Conducted river cleanup and community
Environmentaltion activities at global sites
greenification activities at bases worldwide
activities under theme of “Water
contribution
Circulation—Protection of• Conduct activities under the• Continued coral planting and nature school
activities
Forests, Rivers, and Oceans”
theme of “Ocean Legacy Project”(2 times) initiatives

Participation in the Environmental Reporting Platform Development Pilot Project
To reinforce communication with stakeholders, since 2014 Olympus has been a member of the Environmental Reporting
Platform Development Pilot Project led by the Ministry of the Environment. Investors are recently placing more importance on
environmental, social, and governance (ESG) information to make sound investment decisions. In light of this, the Ministry of
the Environment established the ESG Dialogue Platform, with a trial phase starting in 2013. The platform is designed todisclose and share ESG information on the environment and enable interactions between corporations and investors to createa framework in which environment-conscious companies are acknowledged and appropriately assessed and invested in.
Olympus will use this project to reach out to investors and stakeholders and incorporate their ideas in its business withthe aim of further improving its corporate value.

One Olympus Report 201873