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 of damages caused by misunderstanding from thetranslation.

Consolidated Financial Results
for the Six Monthsof the Fiscal Year Ending March 31, 2019
<under IFRS>
November 6, 2018
Company Name: Olympus Corporation
Code Number: 7733
(URL: http://www.olympus.co.jp/)
Stock Exchange Listing: First Section of Tokyo Stock Exchange
Representative: Hiroyuki Sasa, Representative Director, President
Contact: Takayuki Aoyagi, General Manager, Accounting Department
Phone: 03-3340-2111
Scheduled date to submit the Quarterly Securities Report:
November 6, 2018
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, 2019
(From April 1, 2018 to September 30, 2018)(1) Consolidated Results of Operations (cumulative)(% indicate changes from the same period of the previous fiscal year)
RevenueSix months ended
September 30, 2018
September 30, 2017(¥ million)
381,849
369,431%3.4
5.9

Six months ended
September 30, 2018
September 30, 2017

Profit attributable toowners of parent(¥ million)%(5,494)–29,838
26.4

Operating profit

Profit before tax(¥ million)
2,985
37,393(¥ million)(2,781)35,160%(92.0)
5.6

Total comprehensive
income(¥ million)%
8,045(81.7)
44,016–

Profit%–13.0(¥ million)(5,555)29,830%–26.1

Basic earnings per share

Diluted earnings per share(¥)(16.09)87.18(¥)(16.09)87.14(2) Consolidated Financial Position
Total assets
As of
September 30, 2018
March 31, 2018(¥ million)
939,372
978,663

Equity attributable toowners of parent
to total assets

Equity attributable toowners of parent

Total equity(¥ million)
442,447444,259(¥ million)
441,216
442,793

%
47.0
45.2

2. Dividends
Annual dividends
First quarter

Second quarter(¥)

Fiscal year ended–
March 31, 2018
Fiscal year ending–
March 31, 2019
Fiscal year ending
March 31, 2019
(Forecast)
Note: Revisions of the forecast most recently announced: No

Third quarter

Year-end

Total

(¥)

(¥)

(¥)

(¥)

0.00

–

28.00

28.00

–

30.00

30.00

0.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2019(% indicate changes from the same period of the previous fiscal year)(From April 1, 2018 to March 31, 2019)
Revenue

Operating profit(¥ million)%(¥ million)%
Full year
790,000
0.4
44,000(45.7)
Note: Revisions of the forecast most recently announced: Yes

Profit before tax(¥ million)
39,000%(49.1)

Profit attributable toowners of parent(¥ million)
26,000%(54.4)

Basic
earnings per
share
(¥)
76.15

* 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: No
Changes in accounting policies due to other reasons: No
Changes in accounting estimates: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2018342,713,349 shares
As of March 31, 2018342,691,224 shares2) Total number of treasury shares at the end of the period
As of September 30, 2018
1,293,001 shares
As of March 31, 2018
1,295,351 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018
341,409,370 shares
Six months ended September 30, 2017342,242,675 shares* 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 4 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 .................................................................................................................................... 3(3) Cash Flows .............................................................................................................................................. 4(4) Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements ..... 42.

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) ............................................................... 13(Segment information) .......................................................................................................................... 14

1

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

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

Explanation of Results of Operations

Overall

Revenue
Operating profit

Six months ended
September 30, 2017
369,431

Six months ended
September 30, 2018
381,849

Increase (Decrease)12,418(Millions of yen)
Increase (Decrease)
Ratio (%)
3.4

37,393

2,985(34,408)(92.0)

Profit (loss) attributable toowners of parent

29,838(5,494)(35,332)–

Exchange rate (Yen/U.S. dollar)

111.06110.26(0.80)–

Exchange rate (Yen/Euro)

126.29129.85

3.56–

In the global economy during the six months ended September 30, 2018, the U.S. economy continued tosteadily recover against a backdrop of robust personal consumption. Europe is in a mild economic recovery
amid improvement in the employment environment. In China, a move toward recovery has been seen due toexpansion of personal consumption. In the Japanese economy, employment conditions continued to improveand capital investment remained in a growth trend amid strong corporate earnings, with the trend of moderate
recovery continuing.
Amid this business environment, the Olympus Group’s overall consolidated revenue increased for the six
months ended September 30, 2018 to ¥381,849 million (up 3.4% year on year), due to increased sales in the
Medical Business and Scientific Solutions Business. Operating profit amounted to ¥2,985 million (down
92.0% year on year). Operating profit’s year-on-year decrease despite revenue growth in the Medical andScientific Solutions Businesses was due to a monetary settlement of ¥19,226 million following damages
claim securities litigation settlements; ¥5,898 million in costs associated with the restructuring of the Imaging
Business’s manufacturing locations; a ¥3,793 million provision for damages resulting from the judgment
regarding a lawsuit involving a Chinese production subsidiary; and a ¥9,653 million provision for theestimated loss in relation to an investigation by the U.S. Department of Justice (DOJ). Moreover, an increasein finance costs associated with exchange losses resulted in loss attributable to owners of parent of ¥5,494
million (compared with profit attributable to owners of parent of ¥29,838 million in the same period of theprevious fiscal year).
Regarding foreign exchange, the yen appreciated against the U.S. dollar, on the other hand, it depreciatedagainst the euro compared to the previous fiscal year. The average exchange rate during the period was¥110.26 against the U.S. dollar (¥111.06 in the same period of the previous fiscal year) and ¥129.85 against
the euro (¥126.29 in the same period of the previous fiscal year), which caused revenue and operating profit
to rise by ¥887 million and ¥247 million, respectively, year on year.
Medical Business

Revenue
Operating profit

Six months ended
September 30, 2017289,254
55,384Six months ended
September 30, 2018305,638
54,690

Increase (Decrease)
16,384(694)(Millions of yen)
Increase (Decrease)
Ratio (%)
5.7
(1.3)

Consolidated revenue in the Medical Business amounted to ¥305,638 million (up 5.7% year on year), while
operating profit amounted to ¥54,690 million (down 1.3% year on year).
In the gastrointestinal endoscope field, although the mainstay endoscopy platform systems are reaching thesecond half of their product life cycles, steady sales were maintained. In the surgical field, the new “VISERAELITE II” surgical endoscopy systems performed strongly while sales of the “THUNDERBEAT” integrated
energy device with both advanced bipolar and ultrasonic energy continued to grow. In the therapeutic devices
field, sales of single-use products for use in endoscopic diagnosis and treatment of biliary and pancreatic
ducts and others were strong.
Operating profit in the Medical Business decreased due to the recording of an estimated loss in relation to an
investigation by the DOJ in Provisions.
2Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

Scientific Solutions Business

Revenue
Operating profit

Six months ended
September 30, 201744,6191,257

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

Increase (Decrease)
2,685
1,543

(Millions of yen)
Increase (Decrease)
Ratio (%)
6.0
122.8

Consolidated revenue in the Scientific Solutions Business amounted to ¥47,304 million (up 6.0% year onyear), while operating profit amounted to ¥2,800 million (up 122.8% year on year).
Sales of products for hospitals and life science research were steady in North America and China. Moreover,in addition to strong sales of industrial microscopes for semiconductor and electrical component inspection,
sales of non-destructive testing equipment mainly to the petroleum gas and power generation markets
increased overseas, 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.
Imaging Business

Revenue
Operating profit (loss)

Six months ended
September 30, 2017
30,5691,618

Six months ended
September 30, 201825,678(9,226)

Increase (Decrease)(4,891)(10,844)(Millions of yen)
Increase (Decrease)
Ratio (%)
(16.0)–

Consolidated revenue in the Imaging Business amounted to ¥25,678 million (down 16.0% year on year),while operating loss amounted to ¥9,226 million (compared with an operating profit of ¥1,618 million in thesame period of the previous fiscal year).
The Imaging Business’s revenue declined due partly to the impact of constraints on supplies of certain
products in conjunction with restructuring of manufacturing locations.
As a result of a decrease in revenues and the recording of costs associated with the restructuring of
manufacturing locations, operating loss was recognized in the Imaging Business.
Others

Revenue
Operating loss

Six months ended
September 30, 2017
4,989
(1,213)Six months ended
September 30, 2018
3,229
(1,404)

Increase (Decrease)(1,760)(191)(Millions of yen)
Increase (Decrease)
Ratio (%)
(35.3)–

Consolidated revenue in other businesses amounted to ¥3,229 million (down 35.3% year on year) andoperating loss was ¥1,404 million (compared with an operating loss of ¥1,213 million in the same period of
the previous fiscal year).
Other businesses’ revenue declined due mainly to external sales being terminated for lens units for compact
cameras.
Operating loss for other businesses increased due to the decrease in revenue.

(2)

Financial Position

As of the end of the second quarter under review, total assets decreased by ¥39,291 million compared to theend of the previous fiscal year to ¥939,372 million.
Their decrease was primarily the net result of a ¥12,838 million increase in inventories, a ¥9,050 million
increase in income taxes receivable, a ¥7,989 million increase in property, plant and equipment, a ¥2,298
million increase in intangible assets, a ¥6,351 million increase in goodwill, a ¥60,389 million decrease in cash
and cash equivalents, and a ¥16,329 million decrease in trade and other receivables classified as current
assets.
Total liabilities decreased in comparison to the end of the previous fiscal year by ¥37,479 million to ¥496,925
3

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

million, mainly as a net result of a ¥15,399 million increase in provisions classified as current liabilities, a¥7,086 million decrease in bonds and borrowings classified as current liabilities, a ¥35,462 million decreasein bonds and borrowings classified as non-current liabilities.
Total equity decreased in comparison to the end of the previous fiscal year by ¥1,812 million to ¥442,447
million. Its decrease was primarily the net result of a ¥15,111 million increase in other components of equity
due largely to exchange rate movements, a decrease in retained earnings reflecting ¥5,494 million in loss
attributable to owners of parent, and ¥9,559 million of dividends.
As a result of the foregoing, equity attributable to owners of parent to total assets increased from 45.2% as ofthe end of the previous fiscal year to 47.0%.
(3)

Cash Flows

Cash and cash equivalents at the end of the second quarter under review reached ¥130,850 million, a decreaseof ¥60,389 million compared to the end of the previous fiscal year. The following are the cash flows for thesix months ended September 30, 2018.
Cash flows from operating activities
Net cash provided by operating activities for the six months ended September 30, 2018 was ¥27,444 million(compared with ¥42,612 million provided for the six months ended September 30, 2017). The main sourcesof cash included a ¥25,708 million decrease in trade and other receivables and an adjustment for noncash
item of ¥28,372 million in depreciation and amortization. The main uses of cash included ¥14,821 million ofincome taxes paid and a ¥10,408 million increase in inventories.
Cash flows from investing activities
Net cash used in investing activities for the six months ended September 30, 2018 was ¥31,433 million(compared with ¥29,718 million used for the six months ended September 30, 2017). The main uses of cash
included ¥23,518 million in purchase of property, plant and equipment and ¥6,785 million in purchase ofintangible assets.
Cash flows from financing activities
Net cash used in financing activities for the six months ended September 30, 2018 was ¥58,198 million(compared with ¥34,713 million used for the six months ended September 30, 2017). The main sources ofcash included ¥25,818 million in net increase (decrease) in short-term borrowings and commercial papers and¥9,425 million in proceeds from long-term borrowings. The main uses of cash included ¥56,518 million in
repayments of long-term borrowings, ¥25,000 million in redemption of bonds and ¥9,559 million in
dividends paid.
(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, 2019, theforecasts have been revised from the forecasts announced in the “Consolidated Financial Results for theThree Months of the Fiscal Year Ending March 31, 2019,” which was released on August 7, 2018.
The full-year forecasts for revenue, operating profit, and following profit items have been downwardly
revised as a result of the recording in the six months ended September 30, 2018, of an estimated loss in Other
Expenses in relation to an investigation by the DOJ, in addition to revisions to the year-end plan in responseto the intensified competitive environment in the Imaging Business. The average exchange rates for the third
quarter and onward of the fiscal year ending March 31, 2019, which are a precondition for the forecast, areexpected to be ¥105 against the U.S. dollar and ¥130 against the euro.

4

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

(Millions of yen)
Revenue
Previous Forecast (A)Revised Forecast (B)Increase (Decrease) (B-A)
Increase (Decrease) ratio (%)

800,000
790,000(10,000)(1.3)

Operatingprofit58,00044,000(14,000)(24.1)

5

Profit before
tax
53,00039,000(14,000)(26.4)

Profitattributable toowners ofparent40,00026,000(14,000)(35.0)

Basic earnings
per share¥117.17¥76.15––Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

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

Condensed Consolidated Statements of Financial Position(Millions of yen)

As of March 31, 2018ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Income taxes receivable
Other current assets
Subtotal
Non-current 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,
2018

191,239
157,339
7,442
139,309
4,127
14,487513,943348
514,291

130,850
141,010
6,658
152,147
13,177
15,789459,631

168,243
97,20873,371
29,51444
17,971
39,68337,135
1,203
464,372
978,663

176,232
103,559
75,66929,86940
12,913
43,121
36,993
1,345
479,741
939,372–

459,631Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

(Millions of yen)

As of March 31, 2018
LIABILITIES AND EQUITY
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
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,
2018

57,55988,791
8,793
9,467
6,814
134,496
305,92053,84681,705
11,072
5,910
22,213125,920
300,666

159,183
7,379
39,145785
10,004
11,988228,484
534,404

123,721
7,132
41,746
1,088
11,26811,304
196,259
496,925

124,560
91,502(4,775)(5,810)237,316
442,793
1,466
444,259
978,663

124,606
91,323(4,765)
9,301
220,751
441,216
1,231
442,447
939,372Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019(2)

Condensed Consolidated Statements of Profit or Loss
(Millions of yen)Six months ended
September 30, 2017
369,431
127,675
241,756
203,544Six months ended
September 30, 2018
381,849
133,002248,847
212,387

(207)

215

3,005
3,617
37,3931,578
3,811
35,1605,330
29,8304,630
38,320
2,985
1,208
6,974
(2,781)
2,774(5,555)

Profit (loss) attributable to:
Owners of parent
Non-controlling interests
Profit (loss)

29,838(8)29,830(5,494)(61)(5,555)

Earnings per share
Basic earnings (loss) per share
Diluted earnings (loss) per share¥87.18¥87.14¥(16.09)¥(16.09)

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, 2019(3)

Condensed Consolidated Statements of Comprehensive Income(Millions of yen)Six months ended
September 30, 2017
29,830Six months ended
September 30, 2018
(5,555)

2,479

1,904

(936)
1,543

(1,594)310

12,049607

12,908
387

(13)

(5)

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

12,643
14,18644,016

13,29013,6008,045

Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income

44,021(5)44,016

8,105
(60)
8,045

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, 2019(4)

Condensed Consolidated Statements of Changes in Equity
Six months ended September 30, 2017
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2017

Total equity

185,226

394,751

1,477

396,228

29,83829,838(8)29,83014,183

3

14,18644,021(5)44,016

Share capital

TreasurysharesOther
componentsof equity

Retainedearnings

124,520

91,779(1,122)(5,652)

ProfitOther comprehensive
incomeComprehensive income

Total

Noncontrollinginterests

Capitalsurplus14,183–––Purchase of treasury shares
Disposal of treasury shares(2)

14,18329,838

(3)

(3)

(3)

2

0

0

Dividends from surplus
Transfer from othercomponents of equity toretained earnings

353(9,583)(9,583)(79)(9,662)

(353)

–

–

35

35

Share-based paymenttransactions

40

(5)

Total transactions withowners

40

(7)

(1)

353

(9,936)(9,551)(79)(9,630)124,560

91,772(1,123)

8,884

205,128

429,2211,393

430,614

Balance at September 30,
2017

Six months ended September 30, 2018
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2018

1,466

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

13,5991

13,600

8,105

(60)

8,045

124,560

91,502(4,775)(5,810)13,599–

Disposal of treasury shares

–
(14)

–

13,599

(4)

14

0

0

(9,559)(1,512)

–

–

28

74

74

(193)

(193)

193

–

1,512

Equity transactions with
non-controlling interests(4)(9,559)Transfer from othercomponents of equity toretained earnings
46(5,494)(4)

Dividends from surplus

Balance at September 30,
2018442,793

Retainedearnings

Purchase of treasury shares

Total transactions withowners237,316

Other
componentsof equity

Other comprehensive
incomeShare-based paymenttransactions

Total equity

Share capital

TreasurysharesProfit (loss)

Comprehensive income

Total

Noncontrollinginterests

Capitalsurplus(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

442,447

10

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019(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
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Proceeds from sale of investments in subsidiaries
resulting in change in scope of consolidation
Payments for acquisition of business
Other
Net cash used in investing activities

11

Six months ended
September 30, 2017

Six months ended
September 30, 201835,16025,521
(748)
3,576
588
–

(2,781)
28,372(1,050)2,704
19,226
9,653

207

(215)

18,333(14,175)(3,470)875
1,328(11,497)
55,698396
352(3,439)(217)(10,178)
42,61225,708(10,408)(3,271)
1,063(1,657)(4,319)63,025741
309(2,782)(19,028)(14,821)
27,444(22,365)
4,238(7,212)
(811)
485
2,550

(23,518)
3,305(6,785)(1,162)0274(8,653)

–

2,336

–

–

(3,473)(74)(31,433)(286)(29,718)

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

(Millions of yen)

Cash flows from financing activities
Increase (decrease) in short-term borrowings andcommercial papers
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Proceeds from issuance of bonds
Redemption of bonds
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

12

Six months ended
September 30, 2017

Six months ended
September 30, 2018

(2,427)25,81823,550(55,111)(9,583)
(79)
9,946

9,425
(56,518)(9,559)(368)–(1,009)(34,713)(25,000)(1,996)(58,198)

3,653

1,798

(18,166)
199,465
181,299(60,389)
191,239
130,850–Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019(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 medical, scientific, imaging andother 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 “Ordinance on Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements” are satisfied, the Olympus
Group adopts the provisions of Article 93 of the same Ordinance.
The condensed consolidated financial statements do not include all the information and disclosuresrequired in the annual consolidated financial statements and should be used in conjunction with theOlympus Group’s annual consolidated financial statements as of March 31, 2017.
These condensed consolidated financial statements were approved by the Board of Directors meetingon November 6, 2018.
(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 three months ended June 30, 2018 are the same as those applied for the fiscal year
ended March 31, 2018.
(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.
Significant accounting estimates and associated judgments in the condensed consolidated financial statements
are consistent with the consolidated financial statements for the previous fiscal year.

13

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

(Segment information)(1) Overview of reportable segments
The reportable segments of the Olympus Group are components of the Company whose separate
financial information is available. These segments are periodically evaluated by the Board of Directors
in deciding how to allocate management resources and in assessing the performance.
The Olympus Group, based on the four businesses, Medical Business, Scientific Solutions Business,
Imaging Business and Others, formulates comprehensive strategies for Japan and abroad with respect
to products and services handled and deploys business activities.
Accordingly, the Olympus Group has the abovementioned four businesses as reportable segments.
The principal products and services of each reportable segment are as follows.
Reportable Segment

Principal products and services

Medical Business
Scientific Solutions Business

Gastrointestinal endoscopes, surgical endoscopes, endo-therapy devices, ultrasound endoscopes
Biological microscopes, industrial microscopes, industrial endoscopes, non-destructive testing
equipment
Digital cameras, voice recorders
Biomedical materials

Imaging Business
Others(2) Revenue and business results for reportable segments
Revenue and other performance of each reportable segment of the Olympus Group are as follows. The
accounting method used for reportable segments is the same as that applied for its consolidated
financial statements for the fiscal year ended March 31, 2018.
Six months ended September 30, 2017
(Millions of yen)
Reportable Segment
Adjustment(Note 2)

Amount oncondensed
consolidated
financialstatements

MedicalScientific
Solutions

Imaging289,254

44,61930,5694,989

369,431–369,431

–

41

6

257

304

(304)

–

Total revenue

289,254

44,66030,575

5,246

369,735(304)

369,431

Operating profit (loss)

55,384

1,257

1,618

(1,213)57,046(19,653)

37,393

OthersTotal

Revenue
Revenue from outside
customers
Revenue among
segments (Note 1)

Finance income
Finance costs

1,578
3,811

Profit before tax

35,160

Other items
Share of profit (loss) ofinvestments accounted forusing equity method
Depreciation andamortization
Impairment losses (nonfinancial assets)

(200)

(7)

–

–

(207)

–

(207)

19,744

2,690

1,099

301

23,834

1,687

25,521

5

55

–

–

60

–

60

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.

14

Olympus Corporation (7733) Financial Results for the Six Months of the Fiscal Year Ending March 31, 2019

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

MedicalScientific
Solutions

Imaging

305,638

47,30425,678

3,229

–

20

–

Total revenue

305,638

47,324

Operating profit (loss)

54,6902,800

OthersTotal

Revenue
Revenue from outside
customers
Revenue among
segments (Note 1)

Finance income
Finance costs

1,208
6,974

Profit before tax(2,781)Other items
Share of profit (loss) ofinvestments accounted forusing equity method
Depreciation andamortization
Impairment losses (nonfinancial assets)

215

0

–

–

215

–

215

21,991

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.

15