Consolidated Financial Results
for the Three Monthsof the Fiscal Year Ending March 31, 2024
<under IFRS>

August 9, 2023
Company Name: Olympus Corporation
Code Number: 7733
(URL: https://www.olympus.co.jp/)
Stock Exchange Listing: Prime Market of Tokyo Stock Exchange
Representative: Stefan Kaufmann, Director, Representative Executive Officer, President and CEO
Contact: Takayuki Aoyagi, Vice President, Accounting Department
Phone: 03-3340-2111
Scheduled date to submit the Quarterly Securities Report:
August 9, 2023
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 Three Months of the Fiscal Year Ending March 31, 2024
(From April 1, 2023 to June 30, 2023)(1) Consolidated Results of Operations (cumulative)(% indicate changes from the same period of the previous fiscal year)
Operating profit

RevenueThree months ended

Adjusted operating
profit(¥ million)%

Profit before tax

Profit(¥ million)%(¥ million)%(¥ million)%(¥ million)%

June 30, 2023

207,723

8.0

22,476(49.5)

28,267(5.0)

19,710(53.1)

240,614865.5

June 30, 2022

192,265–

44,521–

29,740–42,048–24,922

32.9

Three months ended

Profit attributable toowners of parent(¥ million)%

June 30, 2023

240,560

Total comprehensive
income(¥ million)
%

867.7

285,117

Basic earnings per share

221.5

Diluted earnings per share

(¥)

(¥)

191.90191.50June 30, 2022
24,86033.0
88,679
313.7
19.53
19.52
Note: The Scientific Solutions Business has been classified as a discontinued operation from the second quarter of the previous fiscal year.
Due to this, the amounts presented for revenue, operating profit, adjusted operating profit and profit before tax are the amounts fromcontinuing operations from which the discontinued operation has been excluded. The amounts presented for profit and profit attributableto owners of parent are aggregates of continuing operations and discontinued operation. As the businesses have been similarly
reclassified in the three months ended June 30, 2022, changes from the same period of the previous fiscal year are not presented.

(2) Consolidated Financial Position

As of(¥ million)(¥ million)(¥ million)

Ratio of equity attributableto owners of parent
to total assets%

June 30, 2023

1,688,272

906,924

905,904

53.7

March 31, 2023

1,508,308

641,234

640,085

42.4

Total assets

Equity attributable toowners of parent

Total equity

2. Dividends
Annual dividends
First quarter

Second quarter(¥)

Fiscal year ended–
March 31, 2023
Fiscal year ending–
March 31, 2024
Fiscal year ending
March 31, 2024
(Forecast)
Note: Revisions of the forecast most recently announced: No

Third quarter

Year-end

Total

(¥)

(¥)

(¥)

(¥)

0.00

–

16.00

16.00

0.00

–

18.00

18.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(From April 1, 2023 to March 31, 2024)(% indicate changes from the same period of the previous fiscal year)
Revenue(¥ million)

Operating profit%(¥ million)%

Adjusted operating
profitProfit before tax(¥ million)(¥ million)

%

Basic
Profit attributable toearnings perowners of parent
share% (¥ million)%(¥)

Full year
914,000
3.6
163,000(12.7)
182,000
2.9
159,000(12.8)
336,000 134.3
272.66
Note: Revisions of the forecast most recently announced: No
The Scientific Solutions Business has been classified as a discontinued operation from the second quarter of the previous fiscal year. Dueto this, the amounts presented for revenue, operating profit, adjusted operating profit and profit before tax in the forecast of financial
results for the fiscal year ending March 31, 2024 are the amounts from continuing operations. The amounts presented for profit
attributable to owners of parent and basic earnings per share are aggregates of continuing operations and discontinued operation.

* Notes(1) Changes in significant subsidiaries during the three months under review (changes in specified
subsidiaries resulting in the changes in scope of consolidation): Yes
Newly included: None
Excluded:
1 company (Evident Corporation)(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 stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023
1,266,178,700 shares
As of March 31, 2023
1,266,178,700 shares2) Total number of treasury shares at the end of the period
As of June 30, 2023
12,596,640 shares
As of March 31, 2023
12,641,218 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2023
1,253,555,850 shares
Three months ended June 30, 2022
1,273,057,773 shares* Quarterly financial results reports are exempt from quarterly reviews conducted by certified public
accountants or an audit corporation.
* Proper use of the forecast of financial results, and other special matters(Caution concerning forward-looking statements)
The forward-looking statements contained in these materials are based on information currently available asof the date of release of these materials and on certain assumptions deemed to be reasonable. Actual
business and other results may differ substantially due to various factors.
(Adjusted operating profit)
Adjusted operating profit is the amount of profit after deducting other income and other expenses fromoperating profit. Adjusted operating profit is disclosed because it is one of the performance metrics of the
Olympus Group.

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

Attached Material
Contents
1.

Qualitative Information Regarding Settlement of Accounts for the Three Months ..................................... 2(1) Explanation of Results of Operations ...................................................................................................... 2(2) Financial Position .................................................................................................................................... 6(3) Cash Flows .............................................................................................................................................. 6(4) Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements ..... 72.

Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto ........................... 8(1) Condensed Quarterly Consolidated Statements of Financial Position .................................................... 8(2) Condensed Quarterly Consolidated Statements of Profit or Loss ......................................................... 10(3) Condensed Quarterly Consolidated Statements of Comprehensive Income ......................................... 11(4) Condensed Quarterly Consolidated Statements of Changes in Equity .................................................. 12(5) Condensed Quarterly Consolidated Statements of Cash Flows ............................................................ 13(6) Notes to Condensed Quarterly Consolidated Financial Statements ...................................................... 15(Notes on premise of going concern) .................................................................................................... 15(Reporting entity) .................................................................................................................................. 15(Basis of preparation) ............................................................................................................................ 15(Material accounting policies) ............................................................................................................... 16(Significant accounting estimates and associated judgments) ............................................................... 16(Business segments) .............................................................................................................................. 16(Assets held for sale and liabilities directly associated with assets held for sale) ................................. 18(Equity and other equity items) ............................................................................................................. 19(Dividends) ............................................................................................................................................ 19(Revenue) .............................................................................................................................................. 20(Other income and other expenses) ....................................................................................................... 21(Per-share data) ..................................................................................................................................... 22(Cash flow information) ........................................................................................................................ 24(Financial instruments) .......................................................................................................................... 26(Discontinued operation) ....................................................................................................................... 29(Contingent liabilities)........................................................................................................................... 30(Subsequent events)............................................................................................................................... 30

1

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

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

Explanation of Results of Operations

In the second quarter ended September 30, 2022, Olympus Corporation concluded a share transfer agreement
related to the transfer of Scientific Solutions Business of the Olympus Group with K.K. BCJ-66, a special
purpose company indirectly owned by funds advised by Bain Capital Private Equity, LP (together with its
affiliates, “Bain Capital”). Due to this, profit (loss) from the Scientific Solutions Business has been classified
as profit (loss) from discontinued operation from the second quarter ended September 30, 2022, and it has
been presented in the same manner for the first quarter ended June 30, 2022. Furthermore, the amounts
presented for revenue, operating profit, adjusted operating profit, profit before tax and profit from continuing
operations are the amounts from continuing operations from which the discontinued operation has been
excluded, while the amounts presented for profit and profit attributable to owners of parent are aggregates ofcontinuing operations and discontinued operation.
Additionally, the Olympus Group formerly had four reportable segments: “Endoscopic Solutions,”“Therapeutic Solutions,” “Scientific Solutions,” and “Others.” However, from the second quarter ended
September 30, 2022, they have been changed to three segments: “Endoscopic Solutions,” “Therapeutic
Solutions,” and “Others,” and have been presented in the same manner for the first quarter ended June 30,
2022.
Based on the above share transfer agreement, on April 3, 2023, we completed transferring all shares of
Evident Corporation (“Evident”), a consolidated subsidiary of Olympus Corporation to which our Scientific
Solutions Business was transferred through an absorption-type company split.
Trends in overall business results
The global economy continued the trend toward recovery in the three months ended June 30, 2023, while
global monetary tightening poses a downside risk. Furthermore, impacts were felt from the war in Ukraine
and global inflation along with rising raw material prices, supply chain constraints, and shortages ofcomponents. Amid a recovery in economic activities and a gradual economic recovery, the Japanese economy
was also impacted by fluctuations in foreign exchange, and from the same factors affecting the global
economy, namely, rising raw material prices, supply chain constraints, and shortages of semiconductors andother components.
Despite this environment, the Olympus Group is continuing to work to transform into a global medtech
company by pursuing our three priorities of “Patient safety and sustainability,” “Innovation for growth” and“Productivity” in line with the management strategy announced in May 2023.
Business results
Business results of continuing operations are presented in (1) to (10), and business results of the sum ofcontinuing operations and discontinued operation are presented in (11) below.

2Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(1) Revenue

Three months ended
June 30, 2022
192,265

Three months ended
June 30, 2023
207,723

Increase (Decrease)
15,458(Millions of yen)
Increase (Decrease)ratio (%)
8.0

(2) Cost of sales

66,54470,4973,953

5.9(3) Selling, general andadministrative expenses

96,018

108,770

12,752

13.3(4) Share of profit (loss) ofinvestments accounted forusing equity method/Other
income/Other expenses

14,818(5,980)(20,798)–(5) Operating profit

44,521

22,476(22,045)(49.5)(6) Adjusted operating profit

29,74028,267(1,473)(5.0)(7) Finance income (loss)(2,473)(2,766)(293)–(8) Profit before tax

42,04819,710(22,338)(53.1)(9) Income taxes

14,1586,224(7,934)(56.0)(10) Profit from continuing
operations

27,89013,486(14,404)(51.6)(11) Profit attributable toowners of parent

24,860240,560

215,700

867.7

Exchange rate (Yen/USD)

129.57137.37

7.80–

Exchange rate (Yen/EUR)

138.12149.47

11.35–

Exchange rate (Yen/CNY)

19.58

19.56

(0.02)–(1) Revenue
Revenue increased by ¥15,458 million year on year to ¥207,723 million. This increase was due to an increase
in revenue in all business of the Endoscopic Solutions Business, Therapeutic Solutions Business and otherbusinesses. Details are as described in “Analysis of the performance by segment” below.
(2) Cost of sales
Cost of sales increased by ¥3,953 million year on year to ¥70,497 million. The cost-to-sales ratio improvedby 0.7 percentage points year on year to 33.9% due to reduced procurement on the semiconductor spot
market and the impact from foreign exchange due to the depreciating yen.
(3) Selling, general and administrative expenses
Selling, general and administrative expenses increased by ¥12,752 million year on year to ¥108,770 million.
The main factors are an increase in personnel expenses due to future growth and strengthening of the business
operating base, including quality assurance and regulatory compliance, as well as various project-related
expenses aimed at improving efficiency and other factors.
(4) Share of profit (loss) of investments accounted for using equity method/Other income/Other expenses
The sum of share of profit (loss) of investments accounted for using equity method, other income, and otherexpenses amounted to expenses of ¥5,980 million, and the profit or loss deteriorated by ¥20,798 million year
on year. Other income decreased ¥17,203 million year on year after a gain on sale of fixed assets ofapproximately ¥16.4 billion was recorded in the previous fiscal year. On the other hand, other expenses
increased ¥3,369 million year on year, with approximately ¥5.0 billion recorded for FDA-related expenses.
Approximately ¥1.0 billion in expenses related to promoting “Transform Olympus” was recorded in theprevious fiscal year.
(5) Operating profit
Reflecting the factors stated above, operating profit decreased by ¥22,045 million year on year to ¥22,476
million.

3

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(6) Adjusted operating profit
Reflecting the factors stated above, adjusted operating profit, which is the amount of profit after deducting
other income and other expenses from operating profit, decreased by ¥1,473 million year on year to ¥28,267
million.
(7) Finance income (loss)
Finance loss, which reflects finance income and finance costs, deteriorated ¥293 million year on year to¥2,766 million. The deterioration in finance loss was due mainly to the increase of foreign exchange losses asa result of the yen depreciating against various currencies.
(8) Profit before tax
Reflecting the factors stated above, profit before tax decreased by ¥22,338 million year on year to ¥19,710
million.
(9) Income taxes
The decreased profit before tax led income taxes to decrease by ¥7,934 million year on year to ¥6,224
million.
(10) Profit from continuing operations
The decreased profit before tax led profit from continuing operations to decrease by ¥14,404 million year on
year to ¥13,486 million.
(11) Profit attributable to owners of parent
As a result of recording a gain of approximately ¥348.1 billion on the transfer of Scientific Solutions
Business in discontinued operations, profit attributable to owners of parent increased by ¥215.7 billion year
on year to ¥240.560 billion.
(Impact of foreign exchanges rates)
Compared to the same period of the previous fiscal year, the yen depreciated against the USD and EUR, on
the other hand, it appreciated against CNY. The average exchange rate during the period was ¥137.37 against
the USD (¥129.57 in the same period of the previous fiscal year), ¥149.47 against the EUR (¥138.12 in thesame period of the previous fiscal year) and ¥19.56 against the CNY (¥19.58 in the same period of theprevious fiscal year), which caused revenue, operating profit and adjusted operating profit to increase by¥8,278 million, ¥4,548 million and ¥4,697 million, respectively, year on year.

4Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

Analysis of the performance by segment
Endoscopic Solutions Business

Revenue
Operating profit (loss)

Three months ended
June 30, 2022
116,857
24,834Three months ended
June 30, 2023
127,138
22,177

Increase (Decrease)
10,281(2,657)(Millions of yen)
Increase (Decrease)ratio (%)
8.8
(10.7)

Consolidated revenue in the Endoscopic Solutions Business amounted to ¥127,138 million (up 8.8% year onyear), while operating profit amounted to ¥22,177 million (down 10.7% year on year).
Sales in the gastrointestinal endoscope field recorded positive year-on-year growth as a result of increased
sales in Asia and Oceania and Japan and year-on-year sales recovery in China, which had been affected by
the lockdown in Shanghai and other cities during the previous fiscal year. By product, in addition to thefavorable results from sales of the gastrointestinal endoscopic system “EVIS X1” series, demand for theprior-generation upper gastrointestinal videoscopes and colorectal videoscopes was also firm and contributed
to increased sales. The ratio of the “EVIS X1” series to total sales also gradually increased.
In the field of surgical endoscopic solutions, positive year-on-year growth was recorded in all regions as aresult of increased sales from the “VISERA ELITE III” surgical endoscopy system launched in Asia andOceania and in Europe.
In the medical services field, all regions showed positive year-on-year growth due to an increase in newcontracts, in addition to stable sales of existing service contracts including maintenance services.
Operating profit in the Endoscopic Solutions Business decreased. This decrease was due to, in spite of anincrease in operating profit from increased revenue, approximately ¥3.2 billion of FDA-related expenses
recorded in other expenses, as well as increase in personnel expenses due to future growth and strengtheningof the business operating base, including quality assurance and regulatory compliance.
Therapeutic Solutions Business

Revenue
Operating profit (loss)

Three months ended
June 30, 2022
72,365
13,357

Three months ended
June 30, 2023
77,156
9,681

Increase (Decrease)
4,791(3,676)(Millions of yen)
Increase (Decrease)ratio (%)
6.6
(27.5)

Consolidated revenue in the Therapeutic Solutions Business amounted to ¥77,156 million (up 6.6% year onyear), while operating profit amounted to ¥9,681 million (down 27.5% year on year).
The GI-endotherapy field saw positive growth, primarily in North America and Europe. Furthermore, sales
increased in product groups for ERCP (Endoscopic Retrograde Cholangio Pancreatography), which are usedin endoscopic diagnoses and treatment of pancreatic duct, bile duct, etc., the sampling of biopsy forceps, etc.,
which are used for collecting tissue for screening examinations, and product groups for ESD (Endoscopic
Submucosal Dissection) and EMR (Endoscopic Mucosal Resection), which are used in lesion resection.
The urology field achieved favorable performance mainly in North America, Europe, Asia and Oceania, withsales being expanded for resection electrodes for BPH (Benign Prostatic Hyperplasia) and lithotripsy machinefor kidney stones “SOLTIVE SuperPulsed Laser System.”
The respiratory field saw positive growth, primarily in Asia and Oceania. Sales of the devices mainly used forbronchoscopes and EBUS-TBNA (Endobronchial Ultrasound-guided Transbronchial Needle Aspiration)
were favorable.
In other therapeutic areas, sales were favorable for endoscopes for otorhinolaryngology.
Operating profit in the Therapeutic Solutions Business decreased. This was due to, in spite of an increase inoperating profit from increased revenue, approximately ¥1.8 billion of FDA-related expenses recorded inother expenses, as well as increased expenses related to various projects aimed at improving efficiency andother factors.

5Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

Others

Revenue
Operating profit (loss)

Three months ended
June 30, 2022
3,043
(296)

Three months ended
June 30, 2023
3,429
(141)

Increase (Decrease)386
155(Millions of yen)
Increase (Decrease)ratio (%)
12.7–

In other businesses, the Olympus Group conducts R&D and exploratory activities for new businesses in
addition to engaging in the developing, manufacturing, and selling of biomedical materials, such as synthetic
bone filler, and orthopedic equipment.
Consolidated revenue in other businesses amounted to ¥3,429 million (up 12.7% year on year), while
operating loss amounted to ¥141 million (compared with an operating loss of ¥296 million in the same periodof the previous fiscal year).
Revenue increased due to an increase in demand before the transfer of the collagen business at Olympus
Terumo Biomaterials Corporation. Operating profit in other businesses improved due to the progress instreamlining of costs.
(2)

Financial Position[Assets]
As of the end of the first quarter under review, total assets increased by ¥179,964 million compared to the endof the previous fiscal year to ¥1,688,272 million. As for current assets, cash and cash equivalents increasedby ¥389,393 million mainly due to the receipt of consideration for the transfer of Scientific Solutions
Business, while assets held for sale decreased by ¥169,056 million following the completion of the Scientific
Solutions Business transfer. As for non-current assets, goodwill, and property, plant and equipment increasedby ¥15,362 million and ¥14,764 million, respectively, mainly due to exchange rate effects, while deferred tax
assets decreased by ¥102,458 million mainly for a gain on the transfer of Scientific Solutions Business.
[Liabilities]
Total liabilities decreased by ¥85,726 million from the end of the previous fiscal year to ¥781,348 million.
Income taxes payable on gains on the transfer of Scientific Solutions Business decreased by ¥66,678 million,
and liabilities directly related to assets held for sale decreased by ¥43,225 million following the completion of
the Scientific Solutions Business transfer.
[Equity]
Total equity increased by ¥265,690 million from the end of the previous fiscal year to ¥906,924 million. The
main factors for this increase, despite the distribution of surplus, were quarterly profit attributable to ownersof parent of ¥240,560 million mainly due to the gain on the transfer of Scientific Solutions Business and anincrease of ¥47,817 million in other components of equity mainly due to exchange differences on translationof foreign operations.
As a result of the foregoing, equity attributable to owners of parent to total assets increased from 42.4% as ofthe end of the previous fiscal year to 53.7%.
(3)Cash Flows

Cash and cash equivalents at the end of the first quarter under review reached ¥558,722 million, an increase of¥353,210 million from the end of the previous fiscal year. The following are the cash flows for the threemonths ended June 30, 2023.
[Cash flows from operating activities]
Net cash used in operating activities for the three months ended June 30, 2023 was ¥53,112 million(compared with ¥26,860 million used for the three months ended June 30, 2022). Cash flows from operating
activities decreased due to income taxes paid of ¥83,513 million, despite an increase due to factors such as
6

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

profit before tax of ¥19,710 million, adjustment for depreciation and amortization of ¥16,613 million, and adecrease in trade and other receivables of ¥15,028 million.
[Cash flows from investing activities]
Net cash provided by investing activities for the three months ended June 30, 2023 was ¥426,988 million(compared with ¥5,198 million provided for the three months ended June 30, 2022). Cash flows frominvesting activities increased mainly due to the receipt of ¥384,835 million in consideration for the transfer of
Scientific Solutions Business and the collection of ¥52,441 million in loans receivable from Evident, etc.
despite a decrease of ¥11,573 million for the purchase of property, plant and equipment such as production
equipment.
[Cash flows from financing activities]
Net cash used in financing activities for the three months ended June 30, 2023 was ¥25,888 million(compared with ¥21,748 million used for the three months ended June 30, 2022). Cash flows from financing
activities decreased mainly due to the payment of ¥20,057 million as dividends.
(4)

Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements
The forecasts of consolidated financial results for the fiscal year ending March 31, 2024 are unchanged
from the forecasts announced in our “Consolidated Financial Results for the Fiscal Year Ended March 31,2023” released on May 12, 2023.

7

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

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

Condensed Quarterly Consolidated Statements of Financial Position(Millions of yen)

As of March 31, 2023
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Income taxes receivable
Other current assets
Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Retirement benefit asset
Investments accounted for using equity method
Trade and other receivables
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

8

As of June 30, 2023

169,329
174,672
11,360162,994
15,96022,421
556,736
169,621726,357

558,722
165,965
12,816
177,487
16,58532,703964,278565
964,843

238,731
182,505
115,183
27,0281,010
36,98021,476
156,5432,495
781,951
1,508,308

253,495
197,867
120,244
28,115827
39,591
27,32554,085
1,880
723,429
1,688,272

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Millions of yen)

As of March 31, 2023
LIABILITIES AND EQUITY
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Subtotal
Liabilities directly associated with assets held for sale
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Other components of equity related to disposal groupheld for sale
Retained earnings
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

9

As of June 30, 2023

62,91949,97023,23599,567
19,111
163,837
418,639
43,253461,892

55,60899,91938,43432,88921,054
168,462
416,36628
416,394

290,087
61,66820,416
2,912
11,90518,194405,182
867,074

246,047
62,51521,0862,810
13,837
18,659364,954781,348

124,643
92,150(28,086)
77,280124,643
92,866(27,986)
125,097

3,034–

371,064
640,0851,149
641,234
1,508,308

591,284
905,904
1,020
906,924
1,688,272

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(2)

Condensed Quarterly Consolidated Statements of Profit or Loss

Continuing operations
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 before tax
Income taxes
Profit from continuing operations
Discontinued operation
Profit (loss) from discontinued operation
ProfitProfit attributable to:
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic earnings (loss) per share
Continuing operations
Discontinued operation
Basic earnings per share
Diluted earnings (loss) per share
Continuing operations
Discontinued operation
Diluted earnings per share

10(Millions of yen)Three months ended
June 30, 2022

Three months ended
June 30, 2023

192,265
66,544
125,72196,018207,723
70,497137,226
108,77037(189)

17,8393,058
44,521
718
3,191
42,04814,15827,890636
6,427
22,476521
3,287
19,7106,224
13,486(2,968)24,922

227,128
240,614

24,86062
24,922

240,56054
240,614¥21.86¥(2.33)¥19.53¥10.71¥181.19¥191.90¥21.85¥(2.33)¥19.52¥10.69¥180.81¥191.50Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(3)

Condensed Quarterly Consolidated Statements of Comprehensive Income

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income(Millions of yen)Three months ended
June 30, 2022

Three months ended
June 30, 2023

24,922

240,614(72)

155

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

52
(20)

(280)
(125)

64,597(820)
63,77763,75788,67945,786(1,158)44,62844,503285,117Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income

88,61762
88,679285,06354
285,117

11

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(4)

Condensed Quarterly Consolidated Statements of Changes in Equity
Three months ended June 30, 2022
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2022

Share capital

CapitalsurplusTreasuryshares124,643

91,239(45,589)

Other
componentsof equity
Other
components related todisposalof equitygroup held
for sale
34,818–

ProfitOther comprehensive
incomeComprehensive income–

Disposal of treasury shares
Cancellation of treasury
shares305,057

510,168

1,194

511,362

24,86024,86062

24,922––63,75763,757–

Transfer from retained
earnings to capital surplus

88,61762

88,679

(1)

(1)

(52)

52

0

0

(23,271)

23,271––

23,295

Transfer from othercomponents of equity toretained earnings(52)

Share-based paymenttransactions

24,86063,757(1)

Dividends from surplus

Balance at June 30, 2022

Total equity

63,757

Repurchase of our shares

Total transactions withowners

Total

Noncontrollinginterests

Retainedearnings(17,822)(17,822)(23,295)

–

–

52

–

–

163

163

163

(226)

(18,048)–

135

23,322(52)–(41,065)(17,660)(226)(17,886)

124,643

91,374(22,267)

98,523–288,852

581,125

1,030

582,155

Three months ended June 30, 2023
(Millions of yen)
Equity attributable to owners of parent

Balance at April 1, 2023

Share capital

CapitalsurplusTreasuryshares124,643

92,150(28,086)

Other
componentsof equity
Other
components related todisposalof equitygroup held
for sale
77,2803,034

ProfitOther comprehensive
incomeComprehensive income––

Repurchase of our shares
Disposal of treasury shares

(10)

–

47,537(3,034)47,537(3,034)

Balance at June 30, 2023

640,0851,149

641,234

240,560

240,56054

240,61444,503
240,560

285,06314

4Transfer from othercomponents of equity toretained earnings

Total transactions withowners371,064

(0)

3
280

Share-based paymenttransactions

Total equity(0)

Dividends from surplus
Transfer from retained
earnings to capital surplus

Total

Noncontrollinginterests

Retainedearnings

44,503
54285,117(0)
4(20,057)(20,057)(183)(20,240)

(3)

–

–

(280)

–

–

809

809

723

86

–

716

100

280

–

(20,340)(19,244)(183)(19,427)

124,643

92,866(27,986)

125,097–591,284

905,904

1,020

906,924

12

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(5)

Condensed Quarterly Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit before tax
Profit (loss) before tax from discontinued operation
Depreciation and amortization
Interest and dividend income
Interest expenses
Loss (gain) on sale and retirement of fixed assets
Share of loss (profit) of investments accounted for using
equity method
Gain on transfer of the Scientific Solutions Business
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
Income taxes paid
Net cash used in operating activities

13(Millions of yen)Three months ended
June 30, 2022

Three months ended
June 30, 2023

42,048(3,815)
17,686(573)
1,503(16,192)

19,710347,628
16,613
(515)
1,408
–

(37)

189

–
7,579
(13,610)(3,434)(651)
309(17,234)
13,579543
30(1,276)(39,736)(26,860)(348,125)
15,028(8,803)(9,209)55(444)(2,458)31,077512
3(1,191)(83,513)(53,112)Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from transfer of the Scientific Solutions
Business
Proceeds from sale of subsidiaries
Collection of loans receivable
Other
Net cash provided by investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings andcommercial papers
Repayments of lease liabilities
Dividends paid
Dividends paid to non-controlling interests
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

14(Millions of yen)Three months ended
June 30, 2022

Three months ended
June 30, 2023

(8,084)
19,387(3,491)(11,573)536(3,297)–

384,835–
122(2,736)
5,198

4,007
52,44139
426,988(87)(0)(4,059)(17,822)(226)
446(21,748)(5,341)(20,057)
(183)
(307)
(25,888)

27,250

5,222(16,160)
302,572
286,412353,210
205,512558,722Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(6)

Notes to Condensed Quarterly Consolidated Financial Statements(Notes on premise of going concern)
No items to report(Reporting entity)
Olympus Corporation is a joint stock company located in Japan. The address of its registered head office isHachioji-shi, Tokyo. Olympus Corporation’s condensed quarterly consolidated financial statements comprise
Olympus Corporation and its subsidiaries (hereinafter, the “Olympus Group”) and interests in Olympus
Corporation’s associates.
The Olympus Group is principally engaged in the manufacturing and sales of endoscopic, therapeutic andother products. Details of each business are as described in Notes (Business segments) (page 16).
(Basis of preparation)(1) Statement of the condensed quarterly consolidated financial statements’ compliance with IFRSThe condensed quarterly consolidated financial statements of the Olympus Group have been preparedin accordance with IAS 34. Since the requirements for a “Specified Company of DesignatedInternational Accounting Standards” set forth in Article 1-2 of the “Regulation on Terminology,
Forms, and Preparation Methods of Quarterly Consolidated Financial Statements” are satisfied, theOlympus Group adopts the provisions of Article 93 of the same Regulation. The condensed quarterly
consolidated financial statements do not include all the information and disclosures required in theannual consolidated financial statements and should be used in conjunction with the Olympus Group’s
annual consolidated financial statements as of March 31, 2023.
These condensed quarterly consolidated financial statements were approved by Director,
Representative Executive Officer, President and CEO Stefan Kaufmann, and Executive Officer and
CFO Chikashi Takeda on August 9, 2023.
(2) Functional currency and presentation currency
The Olympus Group’s condensed quarterly consolidated financial statements are presented in Japaneseyen, which is also Olympus Corporation’s functional currency, and figures are rounded off to thenearest million yen.
(3) Changes in presentation methods(Changes caused by the classification of the Scientific Solutions Business as discontinued operation)
In the second quarter ended September 30, 2022, Olympus Corporation concluded a share transfer
agreement related to the transfer of Scientific Solutions Business of the Olympus Group with K.K.
BCJ-66, a special purpose company indirectly owned by funds advised by Bain Capital. Due to this,the Scientific Solutions Business has been classified as a discontinued operation from the six months
ended September 30, 2022. As a result, a portion of the condensed quarterly consolidated statements ofprofit or loss, condensed quarterly consolidated statements of cash flows and significant notes thereto
for the three months ended June 30, 2022 and the first quarter ended June 30, 2022 have been
reclassified in line with the presentation style for the three months ended June 30, 2023 and the firstquarter ended June 30, 2023.
(Condensed quarterly consolidated statements of cash flows)
In the three months ended June 30, 2022, because “Collection of loans receivable,” which had
previously been included in “Other” of “Cash flows from investing activities,” increased in monetaryimportance, it has been listed independently from the three months ended June 30, 2023. To reflect thischange in the presentation method, we have reorganized our Condensed Quarterly Consolidated
Financial Statements for the three months ended June 30, 2022.
As a result, in the Condensed Quarterly Consolidated Statements of Cash Flows for the three months
ended June 30, 2022, the negative ¥2,614 million presented as “Other” in “Cash flows from investing
activities” was reorganized into “Collection of loans receivable” of ¥122 million and “Other” ofnegative ¥2,736 million.

15

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Material accounting policies)
The material accounting policies adopted for the condensed quarterly consolidated financial statements of the
Olympus Group for the three months ended June 30, 2023 are the same as those applied for the fiscal year
ended March 31, 2023.
(Significant accounting estimates and associated judgments)
In preparing IFRS-based consolidated financial statements, the management is required to make judgments,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets,
liabilities, revenues and expenses. Actual results may differ from such estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis and the effect is recognized in
the period in which the estimates are revised and in future periods.
The details of significant accounting estimates and associated judgments in the condensed quarterly
consolidated financial statements are unchanged from the contents described in the consolidated financial
statements for the previous fiscal year.
(Business segments)(1) Overview of reportable segments
The reportable segments of the Olympus Group are the units for which separate financial information
is available and according to which reporting is periodically conducted to decide how to allocate
management resources and assess business performance.
In the past, the Olympus Group had four reportable segments: “Endoscopic Solutions,” “Therapeutic
Solutions,” “Scientific Solutions,” and “Others.” However, from the second quarter ended September
30, 2022, we have changed to three reportable segments: “Endoscopic Solutions,” “Therapeutic
Solutions,” and “Others,” and have presented the information in the same manner for the first quarter
ended June 30, 2022. The change is due to Olympus Corporation classifying the Scientific Solutions
Business as a discontinued operation with the conclusion of a share transfer agreement related to thetransfer of Scientific Solutions Business of the Olympus Group with K.K. BCJ-66, a special purpose
company indirectly owned by funds advised by Bain Capital. An outline of the discontinued operation
is provided in (Discontinued operation) (page 29). The transfer of the shares of Evident, which
operates the Scientific Solutions Business, was completed on April 3, 2023.
The principal products and services of each reportable segment are as follows.
Reportable Segment

Principal products and services

Endoscopic Solutions Business Gastrointestinal endoscopes, surgical endoscopes, medical service
Therapeutic Solutions Business Gastroenterology devices, urology products, respiratory products, energy devices, ENT products,
gynecology products
OthersBiomedical materials, orthopedic equipment(2) Revenue and business results for reportable segments
Revenue and business results of each reportable segment of the Olympus Group are as follows. The
accounting treatment used for reportable segments is as described in (Material accounting policies)(page 16).

16

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

Three months ended June 30, 2022
(Millions of yen)
Reportable Segment
Adjustment(Note 2, 3)

Amount oncondensed
quarterly
consolidated
financialstatements

192,265–

192,265

102

102

(102)

–

72,365

3,145

192,367(102)

192,265

13,357(296)

37,895

6,626

44,521

Endoscopic
Solutions

Therapeutic
Solutions

Others

Revenue from outside
customers

116,857

72,365

3,043

Intersegment revenue(Note 1)––

Total revenue

116,857

Operating profit (loss)

24,834

Total

Revenue

Finance income

718

Finance costs

3,191

Profit before tax

42,048Other items
Share of profit (loss) ofinvestments accounted forusing equity method

37

–

–

37

–

37

Depreciation andamortization

9,167

4,793

331

14,291

1,475

15,766

Impairment losses

333

388

–

721

–

721

Notes:
1. Intersegment revenue is based on actual market prices.
2. Adjustment for operating profit (loss) is corporate expenses that mainly consist of elimination of transactions
among segments, as well as general and administrative expenses and fundamental research expenses that are
not attributable to reportable segments.
3. Adjustment for operating profit (loss) includes gain on sale of fixed assets at Olympus Corporation of ¥16,395
million that is not attributable to reportable segments.

Three months ended June 30, 2023
(Millions of yen)
Reportable Segment
Adjustment(Note 2)

Amount oncondensed
quarterly
consolidated
financialstatements

207,723–

207,723

36

36

(36)

–

77,156

3,465

207,759(36)

207,723

9,681

(141)

31,717(9,241)

22,476

Endoscopic
Solutions

Therapeutic
Solutions

Others

Revenue from outside
customers

127,138

77,1563,429Intersegment revenue(Note 1)––

Total revenue

127,138

Operating profit (loss)

22,177

Total

Revenue

Finance income

521

Finance costs

3,287

Profit before tax

19,710

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

(184)

(5)

–

(189)

–

(189)

10,276

4,683

245

15,204

1,409

16,613

138

–

–

138

(4)

134

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

17

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Assets held for sale and liabilities directly associated with assets held for sale)
Breakdown of assets held for sale and liabilities directly associated with assets held for sale is as follows.
(Millions of yen)
As of March 31, 2023
ASSETSCash and cash equivalents
Trade and other receivables
Inventories
Land
Buildings and structures
Machinery and vehicles
Tools, furniture and fixtures
Construction in progress
Right-of-use assets
Other property, plant andequipment
Intangible assets
Goodwill
Deferred tax assets
Other financial assets
Other current assets
Other non-current assets
Total
Liabilities
Trade and other payables
Accrued expenses
Provisions
Deferred tax liabilities
Other financial liabilities
Other current liabilities
Other non-current liabilities
Total

As of June 30, 2023

36,18334,71235,931
1,371
5,798
2,577
3,246
220
8,168

–
–
165
–
1
23
5
12
–

4,910
15,808

–
–

2,790
1,872
3,792
9,804
2,439
169,621

359
–
–
–
–
565

9,109
10,685
627
4,225
9,187
7,309
2,111
43,253

–
–
–
–
–
–
28
28

Assets classified as assets held for sale and liabilities directly associated with assets held for sale as of March
31, 2023 are as follows.
(Transfer of Scientific Solutions Business)
On August 29, 2022, Olympus Corporation concluded a share transfer agreement related to the transfer of
Scientific Solutions Business of the Olympus Group with K.K. BCJ-66, a special purpose company indirectly
owned by funds advised by Bain Capital. Accordingly, from the fiscal year ended March 31, 2023, the assets
and liabilities related to the Scientific Solutions Business of the Olympus Group have been classified in adisposal group classified as held for sale.
(Transfer of collagen business and dental product sales businesses)
On March 28, 2023, Olympus Terumo Biomaterials Corporation, a consolidated subsidiary of Olympus
Corporation, executed a company split agreement with GC Corporation for the transfer of the collagenproducts development, manufacture and sales business and dental products sales business, which are includedin the other businesses of the Olympus Group. As a result, from the fiscal year under review, the assets andliabilities related to the collagen business and the dental products sales business owned by Olympus Terumo
Biomaterials Corporation are classified as a disposal group classified as held for sale.

18

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

Assets classified as assets held for sale and liabilities directly associated with assets held for sale as of June30, 2023 are as follows.
(Transfer of Scientific Solutions Business)
The transfer of all shares of Evident Corporation, which had been a consolidated subsidiary of Olympus
Corporation, was conducted on April 3, 2023. In conjunction with this transfer, the transfer of the assets andliabilities of the Scientific Solutions Business, which were classified as held for sale in the previous fiscal
year, was completed on the same date. Details are described in (Cash flow information) (page 24).
(Transfer of collagen business and dental product sales businesses)
The transfer of assets and liabilities related to the collagen business and dental product sales businesses,
which were classified as held for sale in the previous fiscal year, was completed on July 3, 2023. Details are
as described in (Subsequent events) (page 30).

(Equity and other equity items)
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)(Cancellation of treasury shares)
Based on resolution of the Board of Directors meeting held on May 11, 2022, Olympus Corporation canceledtreasury shares on June 8, 2022. Due to this cancellation, treasury shares decreased by 13,402,333 shares
during the three months ended June 30, 2022.
The impact of this cancellation is that treasury shares decreased by ¥23,271 million (contraction of negative
stated amount in equity), and capital surplus decreased by ¥23,271 million.
The amount of the above cancellation was deducted from other capital surplus in capital surplus, but theamount that exceeds other capital surplus was deducted from retained earnings.
Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)(Disposal of treasury shares)
Olympus Corporation conducted the disposal of treasury shares based on its restricted stock unit (RSU)
system on June 14, 2023. Due to this disposal, treasury shares decreased by 38,929 shares during the threemonths ended June 30, 2023.
The impact of this disposal is that treasury shares decreased by ¥86 million.
(Dividends)
Dividends paid are as follows.
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)
Resolution

Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

Board of Directors
meeting held on
May 11, 2022

Common stock

17,822

14

Record date

Effective date

March 31, 2022

June 3, 2022

Record date

Effective date

March 31, 2023

June 6, 2023

Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)
Resolution

Class of shares

Total dividends(Millions of yen)

Dividend per share(Yen)

Board of Directors
meeting held on
May 12, 2023

Common stock

20,05716

19

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Revenue)
The organization of the Olympus Group has basically consisted of the Endoscopic Solutions Business,
Therapeutic Solutions Business, Scientific Solutions Business, and Others, but, from the second quarter
ended September 30, 2022, the organization has been changed to basically consist of the Endoscopic
Solutions Business, Therapeutic Solutions Business, and Others, and the information has been presented in
the same manner for the first quarter ended June 30, 2022.
The change is due to Olympus Corporation classifying the Scientific Solutions Business as a discontinued
operation with the conclusion of a share transfer agreement related to the transfer of Scientific Solutions
Business of the Olympus Group with K.K. BCJ-66, a special purpose company indirectly owned by funds
advised by Bain Capital. The transfer procedures were completed on April 3, 2023.
Revenue recorded in Endoscopic Solutions Business, Therapeutic Solutions Business and Others is stated asrevenue, as these segments are the units for which separate financial information is available and according towhich reporting is periodically conducted to decide how to allocate management resources and assessbusiness performance. Revenue is geographically disaggregated by customer location. Relationship between
the disaggregated revenue and revenue of each reportable segment is as follows:
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)(Millions of yen)
Endoscopic Solutions

Therapeutic Solutions

Japan
North America
EuropeChina
Asia and Oceania

14,91444,43230,993
12,388
11,195

10,781
28,654
19,261
6,836
5,469

1,603
40
1,321
7
72

27,29873,126
51,575
19,231
16,736

Others

2,935

1,364

0

4,299

116,857

72,365

3,043

192,265

Total

Others

Total

Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)(Millions of yen)
Endoscopic Solutions

Therapeutic Solutions

Japan
North America
EuropeChina
Asia and Oceania

16,14245,822
31,07017,415
13,38910,92530,351
20,498
7,010
6,805

1,511
67
1,421
310
120

28,57876,24052,98924,735
20,314

Others

3,300

1,567

0

4,867

127,138

77,156

3,429

207,723

Total

OthersTotal

The Endoscopic Solutions Business sells medical devices, including gastrointestinal endoscopes and surgicalendoscopes, as well as provides medical services such as lease and repair for these products, to customers
who are primarily medical institutions in Japan and overseas.
The Therapeutic Solution Business sells medical devices, including gastroenterology devices, urology
products, respiratory products, energy devices, ENT products, and gynecology products, to customers whoare primarily medical institutions in Japan and overseas.
Other businesses include R&D and exploratory activities for new businesses, in addition to sales ofbiomedical materials and orthopedic equipment.
Revenue from the sales of these products has been accounted for using the same accounting policy as thatapplied in the consolidated financial statements for the previous fiscal year.
20

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Other income and other expenses)(1) Other income
Major items of other income are as follows.
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)(Gain on sale of fixed assets)
Olympus Corporation recorded gain on sale of land in Hatagaya of ¥16,395 million in “Other
income.”Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)
There are no significant transactions.
(2) Other expenses
Major items of other expenses are as follows.
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)(Business restructuring expenses)
Olympus Corporation recorded ¥1,011 million for the cost related to promotion of the business
transformation plan “Transform Olympus” in “Other expenses.”Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)(Quality-related expenses)
In order to comply with laws and regulation for medical device of U.S. FDA and other global
regulatory authorities, we must strengthen our quality management systems. An expense of ¥5,013
million was incurred in “Other Expense” to ensure we strengthen our global quality management
system and to improve targeted areas include complaint handling and response, medical device
reporting (MDR), and process design validation.

21

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Per-share data)(1) Basic earnings per share and diluted earnings per share
Three months ended June 30, 2022
(April 1, 2022 - June 30, 2022)

Three months ended June 30, 2023
(April 1, 2023 - June 30, 2023)

Basic earnings (loss) per
share
Continuing operations¥21.86¥10.71

Discontinued operation¥(2.33)¥181.19

Basic earnings per share¥19.53¥191.90

Continuing operations¥21.85¥10.69

Discontinued operation¥(2.33)¥180.81

Diluted earnings per share¥19.52¥191.50

Diluted earnings (loss) per
share

22

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(2) The basis for calculating basic earnings per share and diluted earnings per share(Millions of yen)Three months ended June 30, 2023
(April 1, 2023 - June 30, 2023)

Three months ended June 30, 2022
(April 1, 2022 - June 30, 2022)

Profit used to calculate basic earnings per share and diluted earnings per share
Profit attributable toowners of parent
Profit not attributable tocommon shareholders ofparentProfit (loss) used to
calculate basic earnings per
share
Continuing operations
Discontinued operation
Adjustment to profit
Profit (loss) used to
calculate diluted earnings
per share
Continuing operations
Discontinued operation

24,860240,560––

24,860240,560

27,828(2,968)–13,432
227,128–

24,860240,560

27,828(2,968)13,432
227,128

The weighted average number of shares of common stock used to calculate basic earnings per share anddiluted earnings per share
The weighted average
number of shares ofcommon stock
Increase in number ofshares of common stock
Subscription rights toshares relating to stock
options
Common stock relating
to PSU
Common stock relating
to RSU
Average number of sharesof diluted common stockduring the period

1,273,058 thousand shares

1,253,556 thousand shares

403 thousand shares

297 thousand shares–

1,778 thousand shares

305 thousand shares

546 thousand shares

1,273,766 thousand shares

1,256,177 thousand shares

23

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Cash flow information)
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)
No items to reportThree months ended June 30, 2023 (April 1, 2023 - June 30, 2023)(Transfer of Scientific Solutions Business)(i) Overview of transaction
On August 29, 2022, Olympus Corporation concluded an agreement to transfer all shares of its
consolidated subsidiary, Evident Corporation (hereinafter, “Evident”), which operates the Scientific
Solutions Business, to K.K. BCJ-66, a special purpose company indirectly owned by funds advised by
Bain Capital, and completed the transfer procedures on April 3, 2023. As a result of this, Olympus
Corporation lost its control of Evident on the same day.
(ii) Assets and liabilities associated with the loss of control

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities

30,657
12,49743,154(iii) Cash flows associated with the loss of control(Millions of yen)AmountCash and cash equivalents received as consideration of the loss ofcontrol
Cash and cash equivalents of subsidiaries with the loss of control
Proceeds from the transfer of Scientific Solutions Business (Note)
Note:(Millions of yen)Amount118,936
50,119169,055

421,018(36,183)
384,835

Proceeds from the transfer of Scientific Solutions Business are included in “Cash flows frominvesting activities” in the Condensed Quarterly Consolidated Statements of Cash Flows.

(iv) Gain or loss associated with the loss of control
Olympus Corporation recorded a gain of ¥348,125 million associated with the loss of control of Evident
under “Profit (loss) from discontinued operation” in the Condensed Quarterly Consolidated Statementsof Profit or Loss.

24

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Transfer of Gyrus Medical Limited)(i) Overview of transaction
On April 21, 2023, Olympus Corporation concluded an agreement to transfer all shares of Gyrus
Medical Limited (hereinafter “GML”), a consolidated subsidiary of Olympus Corporation to ATLTECHNOLOGY UK HOLDINGS LIMITED.
Olympus Corporation lost control of GML on the same day that the transfer of shares in accordancewith this share transfer agreement was completed.
(ii) Assets and liabilities associated with the loss of control

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities

688
17
705

(iii) Cash flows associated with the loss of control(Millions of yen)AmountCash and cash equivalents received as consideration of the loss ofcontrol
Cash and cash equivalents of subsidiaries with the loss of control
Proceeds from sale of subsidiaries (Note)
Note:(Millions of yen)Amount
2,226
1,285
3,511

4,007
(0)
4,007

Proceeds from sale of subsidiaries are included in “Cash flows from investing activities” in theCondensed Quarterly Consolidated Statements of Cash Flows.

(iv) Gain or loss associated with the loss of control
Olympus Corporation recorded a loss of ¥191 million associated with the loss of control of GML under“Other expenses” in the Condensed Quarterly Consolidated Statements of Profit or Loss.

25

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Financial instruments)
Fair value of financial instruments
Fair value hierarchy is categorized into the following three levels depending on the observability of
inputs used in the valuation technique for the measurement.
Level 1: Fair value measured at market prices (unadjusted) in active markets for identical assets or
liabilities
Level 2: Fair value measured using observable prices other than those categorized within level 1,
either directly or indirectly
Level 3: Fair value measured using a valuation technique which includes inputs that are not based on
observable market data
The Olympus Group recognizes transfers of financial instruments between the levels of the fair value
hierarchy as if they occurred at the end of each quarter of the fiscal year. There were no significant
financial instruments transferred between the levels for the fiscal year ended March 31, 2023 and thethree months ended June 30, 2023.
(1) Financial instruments measured at fair value
The methods for measuring major financial instruments measured at fair value are as follows.
(Other financial assets and other financial liabilities)
Listed shares are classified as level 1 and stated at market prices valued at the end of each fiscal
year.
Unlisted shares are classified as level 3 and stated at the value obtained by using valuation
techniques such as the comparable company analysis method.
Derivative assets and liabilities are classified as level 2. Currency derivatives are stated at the value
based on forward exchange rates, and interest-rate derivatives are stated at the value obtained basedon observable data such as market interest rates, credit risks, and the period up to maturity.
The contingent consideration for business combinations is classified as level 3 and stated at theestimates of future payability.
The fair value hierarchy of financial instruments measured at fair value is as follows:
As of March 31, 2023
(Millions of yen)
Level 1
Financial assets
Financial assets measured at fair value
through profit or loss
Derivative assets
Equity securities and others
Financial assets measured at fair value
through other comprehensive income
Equity securities and others
Financial liabilities
Financial liabilities measured at fair value
through profit or loss
Derivative liabilities
Contingent consideration

26

Level 2

Level 3

Total

–
–

6,860
–

–
937

6,860
937

470

–

6,431

6,901

–
–

1,216
–

–
8,226

1,216
8,226

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

As of June 30, 2023
(Millions of yen)
Level 1
Financial assets
Financial assets measured at fair value
through profit or loss
Derivative assets
Equity securities and others
Financial assets measured at fair value
through other comprehensive income
Equity securities and others
Financial liabilities
Financial liabilities measured at fair value
through profit or loss
Derivative liabilities
Contingent consideration

Level 2

Level 3

Total

–
–

12,143––882

12,143
882

620

–

7,002

7,622

–
–

3,867
–

–
9,195

3,867
9,195

The changes in financial assets categorized within level 3 were as follows:(Millions of yen)Three months ended June 30, Three months ended June 30,
2023
2022
(April 1, 2022 - June 30, 2022) (April 1, 2023 - June 30, 2023)
Balance at April 1
Gains and losses (Note)
Profit or loss
Other comprehensive income
Purchases
Other

3,895

7,368

113
27
147
264

6
61
15
434

Balance at June 30

4,446

7,884

Note:
Gains or losses recognized in profit or loss are mainly included in “Finance income” or “Finance costs” in thecondensed quarterly consolidated statements of profit or loss. Gains or losses recognized in other comprehensive
income are included in “Financial assets measured at fair value through other comprehensive income” in thecondensed quarterly consolidated statements of comprehensive income.
Total gains or losses recognized in profit or loss included a gain of ¥113 million and a gain of ¥6 million on
financial instruments held as of the three months ended June 30, 2022 and 2023, respectively.

The changes in financial liabilities categorized within level 3 were as follows:(Millions of yen)Three months ended June 30, Three months ended June 30,
2022
2023
(April 1, 2022 - June 30, 2022) (April 1, 2023 - June 30, 2023)
Balance at April 1
Settlement
Change in fair value
Other

6,100
(345)
(80)
345

8,226
(115)
395
689

Balance at June 30

6,020

9,195

(2) Financial instruments measured at amortized cost
The methods for measuring the fair value of major financial instruments measured at amortized cost
are as follows. These financial instruments are mainly classified into level 2.
27

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Cash and cash equivalents, trade and other receivables, and trade and other payables)
Account items to be settled in the short term are stated at their book value because their fair value isnearly equal to their book value.
Lease receivables are stated at the value obtained by calculating the present value of each leasereceivable categorized by a specific period, at discounted rates that take into account credit risks andthe period up to maturity.
(Other financial assets and other financial liabilities)
Account items to be settled in the short term are stated at their book value because their fair value isnearly equal to their book value.
(Bonds and borrowings)
Bonds and borrowings with fixed interest rates are stated at the value calculated at discounted rates
which would be applied to a similar issuance of bonds or similar new loans to generate future cash
flows.
Borrowings with variable interest rates are stated at their book value because their fair value isdeemed to be nearly equal to their book value, given that they are short-term borrowings reflecting
market interest rates, and their credit conditions have not significantly changed since the drawdown.
Short-term borrowings and commercial papers are stated at their book value since they are settled in
the short term and their fair value is nearly equal to their book value.
The carrying amount and fair value of major financial instruments measured at amortized cost were as
follows. Financial instruments whose carrying amounts approximate fair value are not included in thefollowing table.
(Millions of yen)
As of March 31, 2023
Carrying
amountFinancial assets
Lease receivables
Financial liabilities
Bonds
Borrowings

28

Fair value

As of June 30, 2023
Carrying
amountFair value

65,00364,98270,75470,613

146,118
134,021141,280
134,287

151,897
134,131

144,613
134,913Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Discontinued operation)(1) Outline of discontinued operation
On August 29, 2022, Olympus Corporation concluded a share transfer agreement related to the transfer
of Scientific Solutions Business of the Olympus Group with K.K. BCJ-66, a special purpose company
indirectly owned by funds advised by Bain Capital. Due to this, profit (loss) from the Scientific
Solutions Business has been classified as profit (loss) from discontinued operation from the second
quarter ended September 30, 2022, and profit (loss) for the three months ended June 30, 2022 and2023 have been presented in the same manner. The transfer of the shares of Evident, which operates
the Scientific Solutions Business, was completed on April 3, 2023. Details are described in (Cash flow
information) (page 24).
(2) Profit (loss) of discontinued operation
Profit (loss) of discontinued operations is as follows:(Millions of yen)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income (Note 1)
Other expenses (Note 2)
Operating profit (loss)
Finance income
Finance costs
Profit before tax (loss)
Income taxes (Note 3)
Profit (loss) from discontinued operation

Three months ended
June 30, 2022
(April 1, 2022 - June30, 2022)

Three months ended
June 30, 2023
(April 1, 2023 - June30, 2023)

21,795
10,30911,486
12,895100
2,436(3,745)
4
74(3,815)(847)(2,968)–––497
348,237112
347,628––
347,628
120,500
227,128

Notes: 1. Other income includes ¥348,125 million in the three months ended June 30, 2023 for the gain on
the transfer of Scientific Solutions Business2. Other expenses include ¥2,365 million and ¥90 million in the three months ended June 30, 2022
and the three months ended June 30, 2023, respectively, related to the spin-off of the Scientific
Solutions Business and the strengthening of its management systems.
3. Income taxes of ¥120,500 million in the three months ended June 30, 2023 are tax expenses
related to the transfer of Scientific Solutions Business.
(3) Cash flows of discontinued operation
Cash flows of discontinued operation are as follows:(Millions of yen)Three months ended
June 30, 2022
(April 1, 2022 - June30, 2022)

Cash flows of discontinued operation

Three months ended
June 30, 2023
(April 1, 2023 - June30, 2023)

Net cash used in operating activities(9,871)(57,303)
Net cash provided by (used in) investing activities (Note)(4,435)436,835
Net cash used in financing activities
(416)
–
Note:
Net cash provided by (used in) investing activities in the three months ended June 30, 2023
includes proceeds from the transfer of the Scientific Solutions Business of ¥384,835 million andcollection of loans receivable from Evident Corporation of ¥52,000 million.

29

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Contingent liabilities)
There are no significant changes from the items provided in the securities report for the previous fiscal year.
(Subsequent events)(Transfer of collagen business and dental product sales businesses)
On March 28, 2023, Olympus Terumo Biomaterials Corporation (hereinafter “OTB”), a consolidated
subsidiary of Olympus Corporation, executed a company split agreement with GC Corporation (hereinafter“GC”) for the transfer of the collagen products development, manufacture and sales business and dental
products sales business, which are included in the other businesses of the Olympus Group. The transfer ofthe businesses in accordance with this agreement was completed on July 3, 2023.

(1) Reasons for transfer
The principle businesses conducted by OTB were the orthopedic and the collagen businesses, but withthe objective of maximizing resource distribution within OTB and the value of both the orthopedic andthe collagen businesses, it was decided to transfer these businesses to GC, which has a strong interestin the collagen business and has also shown a proactive stance towards investing in that business.
(2) Name of counterparty to the company split
GC Corporation(3) Date of the company split
July 3, 2023
(4) Transfer priceTransfer price based on the agreement is ¥1,757 million. Under the agreement, the price has not been
finalized and is subject to price adjustment.
Although this is currently under review, the gain on transfer from this company split is expected to be¥1,220 million.
From the previous fiscal year, the assets and liabilities related to the collagen business and the dental
products sales business owned by OTB are classified as a disposal group classified as held for sale. Details
are as described in (Assets held for sale and liabilities directly associated with assets held for sale) (page18).

(Additional acquisition of interests in subsidiaries)
On July 24, 2023, Olympus Corporation and Terumo Corporation (hereinafter “Terumo”) agreed that the
Olympus Group would acquire all shares of Olympus Terumo Biomaterials Corporation (hereinafter“OTB”), a consolidated subsidiary of Olympus Corporation. Effective August 4, 2023, the Olympus Groupacquired all shares of OTB. With the acquisition of all shares, OTB became a wholly owned subsidiary of
the Olympus Group.

30

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(1) Reason for additional acquisition of interests
Since April 2007, Olympus Corporation and Terumo have been conducting a joint business through
OTB. As a result of much careful consideration by both Olympus Corporation and Terumo, theyreached a conclusion that making OTB a wholly owned subsidiary of the Olympus Group would be
the best way to further increase its corporate value, and reached this agreement.
(2) Acquired ratio of holding capital with voting rights
33.4%
The Olympus Group’s equity interest before acquisition was 66.6%. After acquisition, it is 100%.
(3) Date of additional acquisition of interests
August 4, 2023
(4) Method of acquiring additional interest
Repurchase of our shares from a non-controlling shareholder in consideration for cash(5) Impacts on the Olympus GroupThe impact of the additional acquisition of interests on the Olympus Group is currently under review.
The difference of ¥1,492 million between the ¥1,429 million decrease in non-controlling interests on
the date of acquisition and the fair value of consideration paid of ¥2,921 million is recognized as a
reduction in capital surplus in the consolidated statements of financial position.
(Repurchase of our shares)
At a meeting of the Board of Directors held on May 12, 2023, Olympus Corporation resolved the repurchaseof our shares and the specific means of acquisition as provided for under Article 459 Section 1 of theCompanies Act and Article 32 of Olympus Corporation’s Articles of Incorporation, and carried out the
repurchase of our shares as follows:(1) Details of the resolution passed at the meeting of the Board of Directors held on May 12, 2023:
1. Class of shares:

Common stock of Olympus Corporation

2. Total number of shares to be acquired:

55,000,000 shares (maximum)

3. Total share acquisition value:¥100,000 million (maximum)

4. Acquisition period:

May 15, 2023 to January 31, 2024

5. Acquisition method:

Market purchase based on a discretionary trading
contract on the Tokyo Stock Exchange(2) Treasury shares acquired based on the above resolution by the Board of Directors after the three months
ended June 30, 2023
1. Total number of shares acquired:

875,100 shares

2. Total share acquisition value:¥1,986 million

3. Acquisition period:

July 1, 2023 to July 31, 2023 (based on delivery date)
31

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

(Disposal of treasury shares)
Olympus Corporation conducted the disposal of treasury shares (hereinafter “this disposal of treasury
shares”) based on its restricted stock unit system (hereinafter “RSU system”) and performance share unit
system (hereinafter “PSU system”) as follows.

Olympus Corporation introduced the PSU system in the fiscal year ended March 31, 2018 as stockcompensation to directors (excluding outside directors) and corporate officers until the fiscal year ended
March 31, 2019. After its transition into a company with a Nominating Committee, etc. in June 2019,
Olympus Corporation continued the PSU system as stock compensation for executive officers and corporate
officers, and also further worked on reviewing its compensation systems under a basic concept to reward the
responsibilities of directors (including outside directors) and executive officers with suitable and appropriate
treatments through encouraging strong awareness “to maximize the corporate value and to meet
expectations of various stakeholders,” and as part of this policy, Olympus Corporation introduced RSU
system as stock compensation to directors (including outside directors) and executive officers since thefiscal year ended March 31, 2021. Additionally, starting in the fiscal year ended March 31, 2022, Olympus
Corporation introduced the same RSU system as stock compensation for corporate officers. This disposal oftreasury shares was conducted as stock compensation to the directors, executive officers, and corporate
officers who were the allottees under the RSU system and PSU system, and they paid the entire amount of
their monetary compensation claims to Olympus Corporation as contributed assets in kind, and received
Olympus Corporation’s common stock as a result of the disposal.

32

Olympus Corporation (7733) Financial Results for the Three Months of the Fiscal Year Ending March 31, 2024

Outline of the disposal of treasury shares(1) Date of disposal(2) Class and number of shares for
disposal(3) Disposal price(4) Total amount of disposal value(5) Disposal recipients, the numberof such recipients, and thenumber of shares to be disposedofJuly 25, 2023
515,101 shares of common stock of Olympus Corporation
breakdown
RSU
138,462 shares
PSU
376,639 shares¥2,247 per share¥1,157 million(i) RSU granted for the fiscal year ended March 2021
Two non-executive directors (retirees) and
four executive officers
73,597 shares(ii) RSU granted for the fiscal year ended March 2022
Two non-executive directors (retirees) and
one corporate officer (retiree)4,177 shares(iii) RSU granted for the fiscal year ended March 2022
One corporate officer (retiree)2,027 shares(iv) RSU granted for the fiscal year ended March 2023
Four non-executive directors (including retirees) andsix executive officers
58,661 shares(v) PSU granted for the performance evaluation period starting from thefiscal year ended March 2021 and ending in the fiscal year ended March2023
One non-executive director,
seven executive officers (including retirees) and
14 corporate officers (including retirees)
376,639 shares*Retired executive officers and retired corporate officers include those
who retired in the fiscal years ended March 31, 2021 and 2022, and those
who retired due to the transfer of Evident Corporation (April 3, 2023).

33