Annual Report 2009
For the year ended March 31, 2009

ProﬁleSysmex Corporation (“the Company”) got its start in 1968 as TOA Medical Electronics Co., Ltd., a specialist
manufacturer of instruments and reagents for the hematology market. Over the ensuing 40 years, theCompany expanded its R&D and production functions and evolved into a global, comprehensive supplierin the diagnostics ﬁeld. Extending its operations beyond hematology, the Company’s operations now span thehemostasis, immunochemistry, clinical chemistry, urinalysis and other segments. To symbolize this ongoing transformation, Sysmex unveiled a completely redesigned corporate logo in October 2008.
Sysmex has developed integrated systems encompassing everything from R&D to production, sales and aftersales support. The Company applies a high degree of specialization and a strong technological orientation in its
pursuit of uncompromising excellence in product development and manufacturing. Sysmex has earned a top-class
reputation with medical institutions around the world for technological excellence paired with the ability topropose solutions that precisely meet customer needs. The Company has established a particularly strong global
leadership position in its core segment of hematology, in which it holds the highest market share worldwide.

Forward-Looking Statements
Statements in this annual report, other than those of historical fact, areforward-looking statements about the future performance of Sysmex thatare based on management’s assumptions and beliefs in light of information currently available, and involve both known and unknown risks anduncertainties. Actual events and results may diﬀer materially from thoseanticipated in these statements.

Sysmex Annual Report 2009

To provide products and services that satisfy the diverse needs of markets around the world, Sysmex maintains
a global network of business facilities spanning 42 locations in 26 countries. Through this sales and support
network, the Company supplies products and services to customers in more than 150 countries. To grow further,
Sysmex aims to develop its business on a global basis, as well as by developing proprietary technologies andaggressively pursuing opportunities to expand its operations through alliances, mergers and acquisitions.
The Company is striving to enhance corporate value by leveraging its extensive business infrastructure toadvance beyond diagnosis and treatment, encompassing the broader healthcare spectrum that includes disease
prevention and health maintenance. Sysmex is moving into new R&D ﬁelds, including hematology diseases, immune
diseases, infectious diseases, cancer and diabetes. Through these endeavors, the Company will continue to provide
high-value-added products and services that help to improve the quality of life (QOL) of people everywhere.

Sysmex Annual Report 20091

Making the Next Leap Forward
During the year, the world economy experienced a general downturn.
Nevertheless, robust growth continued in the healthcare industry—
Sysmex’s business domain.
Net sales and operating income reached record levels.
We also raised dividends for the seventh consecutive fiscal year.
2

In May 2009, we announced a new three-year mid-term management plan.
The plan targets ongoing growth and further profitability increases,
Reaching net sales of ¥140 billion and operating income of ¥18.5 billion andLaunching us to the next stage of growth.
.
For further information about
the New Mid-Term Management Plan,please see page 12

Sysmex Annual Report 2009

Contents
5 Key Strategies for Future Growth—The fact that we have made our presence known in thisvery competitive playing field is due in part to our ability to anticipate change. I believe we need to strategicallyaccelerate our operations to extend this lead.

6
8

To Our Stakeholders
An Interview with the President and CEO

12 Special Feature: New Mid-Term Management Plan
18

Net Sales and Operating Income by Geographical Region
3

19 Business Activities—Sysmex provides the instruments and reagents needed forhematology, hemostasis and other tests to customers around the world.

20
24
26

Sysmex at a Glance
Major Products
Introduction to Hematology Technology

29 Functional Structure—As a comprehensive diagnostics supplier, Sysmex has built an integrated
business encompassing R&D, production, sales and after-sales support to provide products and services tohealthcare facilities around the world.

30
32
35
38

Perspective
Research and Development
Purchasing, Production and Logistics
Sales and After-Sales Support

41 Corporate Governance—Sysmex considers corporate governance one ofits most important management topics. We aim to maximize the overall corporate value of
the Group through management robustness, better transparency and improved management
speed and efficiency.

49 Sysmex Value—Sysmex has marked the 40th anniversary of the Company’s founding in Kobe. Currently,
Sysmex has commenced the transformation of moving to a new stage in order to fulfill its social responsibilities as
a company that contributes to bringing about a comfortable and healthy society.

50
52
56

Creating New Value
Socially Responsible Activities
Brief History of the Company

57 Financial Section
58
60
66
79

11-Year Financial DataManagement’s Discussion and Analysis
Consolidated Financial Statements
Independent Auditors’ Report

80 Corporate Information
80
82
83

Network
Consolidated Affiliates
Corporate Overview / Stock Information

Sysmex Annual Report 2009

Introducing Our New Corporate Logo

Shaping the Advancement of Healthcare

4This new corporate logo embodies the next phase of Sysmex’s development. The logo creates a brand identity that
expresses the “Sysmex Way,” the corporate philosophy, as well as the Company’s long-term vision, the outlook of its
employees, and stakeholder expectations.

For further information, please see page 50

Sysmex Annual Report 2009

Key Strategies for Future Growth

The fact that we have made our presence known in this very competitive
playing field is due in part to our ability to anticipate change. I believe weneed to strategically accelerate our operations to extend this lead.
5

Sysmex Annual Report 2009

Key Strategies for Future Growth

To Our Stakeholders
The fiscal year that ended March 31, 2009 and marked the 40th anniversary of our founding was a banner
year for Sysmex. It was punctuated with several turning points. We unveiled a completely redesigned
corporate logo, celebrated the grand opening of Technopark—our new R&D facility, and enjoyed robust
growth in overseas markets. Our new mid-term management plan, which goes into effect in the fiscal
year ending March 31, 2010, aims for ongoing growth and further profitability increases.
6

Consolidated net sales grew 1.0% during the ﬁscal year that

owned subsidiary. In Dubai, the United Arab Emirates, weended March 31, 2009, to ¥111,843 million, and operating

established a company to provide sales and service support.

income rose 0.7%, to ¥15,134 million, representing historic

We also enhanced our relationships with alliance partners.

highs in each category. Net income, however, dropped 12.2%,

We joined bioMerieux of France, a leader in microbiology

to ¥8,014 million, owing to the exchange rate eﬀects of rapid

analysis, to provide products and customer service in Japan.

yen appreciation.

We extended our sales and service agreement with Siemens

In overall economic terms, the ﬁscal year that ended

Healthcare Diagnostics of the United States, which holds

March 31, 2009, was challenging. The global ﬁnancial crisis

the No. 1 share of the market for hemostasis reagents, in the

suppressed demand, causing economic activity to deceler-mutual provision of hemostasis products. On the R&D front,

ate around the world. This situation, exacerbated by rapid

we introduced a rapid detection system for breast cancer

yen appreciation, created a bleak economic scenario. In thelymph-node metastasis. We received approval to manufacture

second half of the year, Asian countries suﬀered the incidental

and sell, as well as national insurance system approval to use,eﬀects of the economic doldrums that aﬀected Europe andthis system—the ﬁrst automated testing system in Japan for

the United States, their chief export markets.

lymph-node metastasis.

On the healthcare front, the average age of the popula-

Despite ongoing diﬃculties in the Japanese market

tions in advanced countries, including Japan, Europe and theenvironment, we continued concentrating our sales eﬀorts

United States, continued to increase, and preventive health-on proposing solutions to meet customers’ needs, focusing

care continued to expand. Meanwhile, emerging countries

speciﬁcally on core hospitals. Nevertheless, sales in Japan

continued to build their healthcare infrastructures. This strong

dropped 0.4% during the year, to ¥35,828 million.

underlying demand for testing enabled the in vitro diagnostics

Overseas sales, however, continued to expand. In theindustry to come through the year’s economic turmoil rela-

Americas, we sustained strong ongoing growth by reinforcing

tively unscathed.

our direct sales and service network in the United States

Under these circumstances, Sysmex took the 40th an-

and Canada. In Central and South America, we generated

niversary of its founding as an opportunity to create a newsales through bid proposals and continued to expand system

corporate logo that expresses the spirit of challenge andsales. In Europe, we converted our French sales and service

transformation that the Company is undergoing as it moves

system to a direct operation. We also moved forward with theonto a new stage of operations. In line with the concept

creation of a sales and service network in the Middle East.

of “creation of ‘knowledge’ and its inheritance,” we also

In China and the Asia-Paciﬁc region, we created a sales andopened Technopark, a facility that approximately doubled

service network and made progress in system sales. Buoyed

our research and development space. We also developedby these eﬀorts on a local-currency basis, sales expanded with

our operations overseas. To reinforce our sales and service

the Americas and China delivering approximately 30% year-

networks in overseas markets, we converted a joint venture

on-year growth. Despite the negative eﬀects of substantial

reagent manufacturing and sales company in India to a wholly

yen appreciation, overseas sales grew 1.7%, to ¥76,015 million,

Sysmex Annual Report 2009

Net Sales

Operating Income
Operating Margin(¥ million)
120,000

110,724 111,843

Operating Income
Operating Margin(¥ million)
16,00015,033 15,134

7

Net Income(%)
20(¥ million)
12,00015

9,000

101,041
12,71587,88890,00012,000

8,014
13.6

9,104
60,0008,000

30,000

4,000

2005

9,132

10,72476,935

0

9,008

2006

2007

2008

2009

0

12.2

11.8

2005

2006

7,423

13.5

12.6

2007

2008

2009

10

6,000

5

3,000

0

0

5,731

2005

2006

2007

2008

2009

(Years ended March 31)

and accounted for 68.0% of total sales, up 0.5 percentage

ending March 31, 2012, the plan targets ongoing growth andpoint from the preceding term.

further proﬁtability increases. The long-term vision behind

On the proﬁt front, eﬀorts to reinforce our R&D structure

the plan is to become “A Unique & Global Healthcare Testingand enhance our direct sales and service network drove up sell-Company.” Through three core strategies—Global Niche No. 1,

ing, general and administrative expenses. The impact of higher

Focus on Asia and Focus on Life Sciences—the plan sets net

sales and an improved gross proﬁt margin raised operating

sales of ¥140 billion and operating income of ¥18.5 billion as

income 0.7%, to ¥15,134 million. However, the Company posted

targets for its ﬁnal year. These objectives represent annual

foreign exchange losses, owing to rapid yen appreciation, which

average growth in net sales of 10%, and a 20% annual averagecaused net income to drop 12.2%, to ¥8,014 million.

increase in operating income over the two-year period begin-

At the beginning of the year, we had forecast annual per
share dividend payments of ¥48 (an interim dividend of ¥24ning April 1, 2010.
On behalf of the Sysmex Board of Directors, I thank ourand a year-end dividend of ¥24). However, the Company

shareholders for your ongoing support, our customers forresolved to raise this amount ¥2, resulting in annual dividend

your loyalty and our employees for your dedication. We lookpayments of ¥50 per share, for the 7th consecutive year offorward to sharing our future progress with you.

dividend increases.
Sysmex has formulated a new mid-term management
plan. Designed to guide the Company through the ﬁscal year
Hisashi Ietsugu
President and CEO

Sysmex Annual Report 2009

Key Strategies for Future Growth

An Interview with the President and CEO
As a leader in the field of healthcare testing, Sysmex will pursue further transformations following its
40th anniversary.

8

How do you view the changes in Sysmex’s
Q operating
environment?

For these reasons, I believe that healthcare is a growthindustry, and I am convinced that the rate of change is increasing. The fact that we have made our presence known in thisA

Although the global economy is in decline, thevery competitive playing ﬁeld is due in part to our ability tohealthcare industry should remain relatively ﬁrm, andanticipate change. I believe we need to strategically accelerate

I expect the market to expand further. The average age of

our operations to extend this lead.

populations in Japan and other advanced countries continues torise rapidly, causing healthcare-related demand to increase. In
these countries, curbing healthcare expenditures is becoming
a major issue, fostering a focal shift from treatment to prevention, and demand for testing is growing rapidly as a result.
Meanwhile, economic growth in emerging countries is
encouraging their formation of healthcare infrastructures, andhave announced a new mid-term
Q You
management plan to guide the Company
through the ﬁscal year ending March 31, 2012. How
would you evaluate the results of the previous midterm plan?

we expect these markets to grow, as well. China, India, Easternon their healthcare frameworks, which should in turn engenderAfurther demand. For these reasons, healthcare needs areoverseas markets. North America is the world’s largest market

growing steadily.

in our business, and in 2003 we took advantage of theEurope, Russia, the Middle East and Africa are making progress

Diagnostics imaging companies are making inroads in the

Although exchange rates ﬂuctuated signiﬁcantly,
we continued to steadily expand our operations inopportunity to begin direct sales and service in the Unitedin vitro diagnostics segment, as the ﬁeld undergoes ongoing

States. The business infrastructure we created there has

restructuring. In the life science domain, venture and otherearned us high praise from our customers. We also steadily

companies are establishing new technologies.

expanded our global scope of activity by establishing bases

External Environment
Sharp forex fluctuationst5IFZFOHSFXTUSPOHBHBJOTULFZ
DVSSFODJFTContinued curb on medical expensest.FEJDBMJOTUJUVUJPOTTFFLJOHIJHIFSPQFSBUJPOBMFóDJFODZ

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Healthcare market remained brisk amid global recessiont"EWBODFEDPVOUSJFT(SBZJOHQPQVMBUJPOT HSFBUFSEFNBOEGPSBEWBODFENFEJDBMDBSF
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Sysmex Annual Report 2009

9in France, Canada, the Middle East and India. Although therobust business, wherein instrument sales lead automaticallyJapanese operating environment remains diﬃcult, we intro-

to a steady revenue stream from sales of speciﬁc reagents. We

duced new products in the immunochemistry and hemostasis

also we provide maintenance and support services, and as theﬁelds. In the life science ﬁeld, we also introduced a rapid

installed base of our instruments increases, these revenues

detection system for breast cancer lymph-node metastasis

grow accordingly.
Furthermore, the ﬁscal year that ended March 31, 2009

and received approval of its insurance points by Japan’s
Ministry of Health, Labour and Welfare. We expect this prod-

was the 40th anniversary of our establishment. During that

uct to be a major driver of future growth in this market. The

milestone year, we introduced a number of developments toCompany’s core business in the ﬁeld of hematology provides

springboard ourselves onto the next stage of development.

the base for such investment and a source of steady revenue

Through the expansion of Techno Center, our previous R&D

and proﬁts. In the hematology segment, which accounts forbase, and in line with the concept of “creation of ‘knowledge’

64% of consolidated net sales, we operate a distinctive andand its inheritance,” we opened Technopark. We also created

Basic Stable Profit Model
With instruments, reagents, service and support under a single umbrella, stable earnings are expected.
(Profit)

Maintenanceservice & parts+
Proprietary
reagents
Automatically & Continuously
We can expect stable earnings+

Profitability :reagents>instruments

Instruments
1st year

2nd year

3rd year

4th year…

Sysmex Annual Report 2009

Key Strategies for Future Growth10

a new corporate logo to embody the spirit of challenge andaverage increase in consolidated net sales of 10% per year andwill to transform that we bring to the next stage of our devel-an average annual increase of 20% in operating income. Our

opment. In these ways, the year represented a major turning

plan assumes exchange rates of US$1.00=¥95, €1.00=¥125.

point in Sysmex’s history. With these pieces in place, I am

By comparison, in the ﬁscal year that ended March 31, 2009,convinced that we are ready for our next leap forward.

we experienced exchange rates of US$1.00=¥100.5 and€1.00=¥143.5. Owing to extremely high yen appreciation, we
expect operating income to decrease during the ﬁscal year

Q

As you move past your 40th anniversary, what
are some issues of priority focus for the Company?

A

We have created a mid-term plan to guide theending March 31, 2010. However, as our business continues togrow steadily, we are convinced that by enhancing the qualityof our management, we will succeed in meeting the targets ofour mid-term management plan.

Company through the ﬁscal year ending March

31, 2012, and this plan targets ongoing growth and further
proﬁtability increases. To achieve the long-term vision that* “Non-hematology” refers to in vitro diagnostics fields, excluding hematology but including hemostasis, immunochemistry, urinalysis, clinicalchemistry and others.

we established in 2007 of becoming “A Unique & Global
Healthcare Testing Company,” the plan retains three core
strategies: Global Niche No. 1, Focus on Asia and Focus on Life
Sciences. The ﬁve key objectives that we have set for the next

Q rate management that you could share with us?
Do you have any important thoughts on corpo-

three years are (1) sustaining growth in the hematology ﬁeld,(2) accelerating the growth of non-hematology* ﬁelds in in
vitro diagnostics, (3) accelerating the commercialization of LifeA

This ﬁts in with my philosophy about work in general,but I am convinced that “Where there’s a will, there’s

Science Business, (4) strengthening R&D and (5) strengthen-a way.” Instead of talking yourself out of a job by saying

ing the corporate structure.

you “can’t do it,” it is essential to channel your energies into

In addition to accelerating growth in the Company’s coreﬁguring out how you can achieve what needs to be done. In

ﬁelds of business in hematology and non-hematology, we willother words, ﬁrst set the goal, and then determine the route.

build a base for future operations in the life sciences in ﬁelds

If you take this approach, knowledge will deﬁnitely accrue.

such as cancer diagnosis and diabetes.

As we work to expand our business, it is important not to

As a technology-oriented company, we will takebecome complacent with our current situation, but to bend

advantage of Technopark to promote the evolution of new

ﬂexibly with the winds of change, sometimes taking a half-

technologies to help achieve objectives that are in line withstep backward for each step forward. This approach led us toour concept of disease management, as well as accelerating

establish bases in the BRICs and other emerging countries at

our R&D another notch. We also will enhance our businessan early date.

management and pursue environmentally conscious initia-

I also believe that recruiting and training excellent

tives as we expand our scale of business in the global arena.

personnel is one our most important management issues.

Our new mid-term plan calls for us to achieve consoli-

Every person has strengths and weaknesses, advantages anddated net sales of ¥140 billion and operating income of ¥18.5

disadvantages. What is important is to create an environment

billion by the ﬁscal year ending March 31, 2012. Over thethat will nurture an employee’s advantages to maximize his or

two-year period beginning April 1, 2010, this amounts to an

her strengths. This is a manager’s most important role.

Sysmex Annual Report 2009

As globalization continues, more people with unique charac-

11

teristics will join Sysmex. I believe that fostering globalizationmeans embracing diversity. I am convinced that gathering
people with diverse strengths to Sysmex will be the source of
our future growth.

Q leave with stakeholders?

Do you have any message you would like toA

I aim to earn the Company the trust of our stakeholders
by truly enacting our corporate philosophy, the“Sysmex Way.” Returning proﬁts to shareholders is one of ourmost important management objectives. Of course, we must
strike a balance between this goal and putting aside ample
funds for the aggressive investment that is needed to ensurehigh levels of stable growth.
I also believe that ensuring ongoing growth is one of themost important ways in which we can fulﬁll our corporatesocial responsibility. To this end, we have established as thelong-term vision of becoming “A Unique & Global Healthcare
Testing Company.” As we contribute to the creation of abountiful and healthy society, we also enhance our corporate
value and meet the expectations of our shareholders andother investors.
Having moved past the landmark of our 40th anniversary,
we have already begun addressing the challenges of transforming ourselves in preparation for the next stage of growth.
As we progress to this next phase, I ask for the ongoingsupport of our investors.

Sysmex Annual Report 2009

Key Strategies for Future Growth

Special Feature: New Mid-Term Management Plan
(Fiscal Years Ending March 31, 2010–2012)

Working Toward Ongoing Growth and
12Sysmex has formulated a new mid-term management plan to lead the Company through the fiscal year
ending March 31, 2012, while achieving ongoing growth and further profitability increases. Based on
our long-term vision of becoming “A Unique & Global Healthcare Testing Company,” the plan aims toaccelerate our business development based on three core strategies—Global Niche No. 1, Focus on Asia
and Focus on Life Sciences. By working steadily to achieve the five key objectives that we have set for
the next three years, we aim to achieve net sales of ¥140 billion and operating income of ¥18.5 billion in
the final year of the plan.
(Our plan assumes exchange rates of US$1.00=¥95, €1.00=¥125.)

Long-Term Strategy
Long-Term Vision

A Unique & Global Healthcare Testing Company
Long-Term Management Target

Consolidated net sales of ¥200 billion or moreThree Core Strategies

Global Niche
No. 1

We will solidify our global No. 1 position in the niche markets of hematology, hemostasis and urinalysis, making our advantage unassailable. Leveraging our global No. 1
share in the hematology field, we will exploit our first-mover advantage as we enter
growing markets in emerging regions and respond to the technological innovationand changing medical needs of advanced countries. We believe that this strategy
plays an important role in accelerating the growth of the Sysmex Group (“the Group”).

Focus onAsia

Of the 10 global leaders in in vitro diagnostics, we are the only company that originatedin Asia, and we have the advantage of having already built a business infrastructure
in China and the Asia-Pacific region. In addition to hematology, we have in place afull lineup of instrument and reagents in the fields of immunochemistry and clinicalchemistry. We will enhance these and expand our service and support network to
reinforce our position in Japan, China and the Asia-Pacific region. Deploying our sales
and service network in emerging countries within Asia, we will expand our productportfolio to include fields in addition to hematology.

Focus onLife Sciences

Based on the concept of disease management, we will pursue research and productcommercialization in such fields as cancer diagnosis and diabetes, as well as promoting a market awareness of new testing technologies as we strive to turn life science
into a business that will accelerate the Group’s future growth.

Sysmex Annual Report 2009

Mid-Term
Management
Targets

Further Profitability Increases
13

Targets of Mid-Term Plan

Net sales:

Operating income:¥140 billion

140.0¥18.5 billion
18.5

127.0
116.0
111.8

CAGR:
approx. 10%

15.2

15.1

CAGR:
approx. 20%

13.0

2009

2010

2011

2012

2009

2010

2011

2012

Exchange rates for 2009: US$1.00 = ¥100.5; €1.00 = ¥143.5
Assumed exchange rates: US$1.00 = ¥95; €1.00 = ¥125

Operating margin: 13.2%

Our new mid-term plan calls for us to achieve
consolidated net sales of ¥140 billion andoperating income of ¥18.5 billion by the fiscal
year ending March 31, 2012. Over the two-year
period beginning April 1, 2010, this amounts toan average increase in consolidated net sales of
10% per year and an average annual increaseof 20% in operating income. Our plan assumes
exchange rates of US$1.00$=¥95, €1.00=¥125.
By comparison, in the fiscal year ended March
31, 2009, we experienced exchange rates of
US$1.00=¥100.5 and €1.00=¥143.5. Owing to
extremely high yen appreciation, we expect
operating income to decrease during the fiscal
year ending March 31, 2010. However, as ourbusiness continues to grow steadily we areconvinced that by enhancing the quality of ourmanagement we will succeed in meeting thetargets of our mid-term management plan.

Investment Plan(¥ billion)

Fiscal years ending March 31

2010

2011

2012

¥ 6.0

¥ 6.0

¥ 6.5

ROE:

12.0%

Capital expenditure

Free cash flow:¥8.4 billion

Depreciation and amortization

7.5

7.5

7.5

R&D expenditure

10.8

12.0

13.0

Sysmex’s ongoing three core strategies for accelerating its business development remain rooted in its longterm vision. More specifically, our mid-term management plan spells out five key objectives to be achieved
during the next three years. We believe that by moving steadily toward these objectives, we will achieve
ongoing growth and further profitability increases.
Five Key Objectives
1. Sustaining Growth in the Hematology Field
2
2.. Accelerating the Growth of Non-Hematology Fields in in vitro Diagnostics
3
3.. Accelerating Commercialization of the Life Science Business4
4.. Strengthening R&D
5
5.. Strengthening the Corporate Structure* “Non-hematology” refers to in vitro diagnostics fields, excluding hematology but including hemostasis, immunochemistry, urinalysis,
clinical chemistry and others.

Sysmex Annual Report 2009

Key Strategies for Future Growth

1. Sustaining Growth in the Hematology Field

14

Further expanding our market share in North America
Sustaining growth in Europe (advanced countries)
Increasing sales in emerging countries

T

he average age of the populations of Japan and other

America. Propelled by expanding markets in these regions, we

advanced countries continues to increase. These de-expect to solidify our global No. 1 position even further.

mographics are fostering an enhanced individual awareness

Focusing on business in advanced countries, in July 2003of health and shifting the locus of growth in the healthcare

we realigned our operations in the United States by introducing

arena from treatment to prevention. The importance ofa direct sales and support structure. Our market share and cus-

diagnostics (testing) is growing accordingly. We anticipate

tomer satisfaction levels have risen as a result. Future activities

market growth in emerging countries, as well as population

will focus on regularly proposing solutions to integrated healthgrowth and economic advances prompt improvements in the

networks (IHNs*) and commercial laboratories. We began

healthcare infrastructure. In this business environment, we

direct sales and service in Canada in 2008, and now the Sysmex

expect demand for healthcare to grow at an even faster rate

brand is steadily penetrating this market. In Europe, we havein the future. These considerations suggest that the field ofbuilt a combined direct/indirect sales and service structure tohematology still has ample room for growth, particularly in

fit the characteristics of each sub-region. This system is func-

Europe—where business continues to grow; North America—

tioning effectively there, earning us the top share of regional

where we anticipate increases in our market share; and inhematology markets and high praise from our customers.

emerging countries throughout Asia and Central and SouthWe are responding to demand for high-quality testing in
newly emerging countries (Asian countries, Central and SouthAmerica, Eastern Europe, Russia, the Middle East and Africa),
where we anticipate market growth over the medium to longterm. We are stepping up our marketing to facilities that are

Hematology segment
Targeted sales by destination

introducing new instrument and promoting high-end equipment and system upgrades. We are also proposing some of the(¥ billion)

100

solutions that we have created for use in advanced countries.
87.6

80

60

71.2

72.4

5.3
5.4

5.5
5.9

79.3

6.9

6.1
6.6

7.4

29.3
27.6

26.1

19.3

20.9

13.7

14.0

14.5

15.0

2009

2010

2011

2012

40

0

on the basis of price, we are working to provide value-added
solutions and enhance the prestige of the Sysmex brand.

27.5

20

As these examples demonstrate, rather than simply competing

24.6(Years to March 31)
n Japann Americas

n Chinan Asia PacificSysmex Annual Report 2009n Europe

29.0* Integrated health networks (IHNs) are integrated health business entities
in the United States. An IHN is an organization of multiple hospitals
formed to provide the healthcare services needed for the local population
across a large medical district.

2. Accelerating the Growth of Non-Hematology Fields in in vitro Diagnostics

Consolidating our status as a comprehensive supplier in Asia, including Japan
Extending our global reach in the hemostasis and urinalysis fields

Using hematology as a pillar for growth, we are building

In Japan, which is broadly considered to have a difficult

awareness of the Sysmex brand in the in vitro diagnos-

market environment, we are expanding our offerings of sales

tics arena outside the area of hematology.
In the field of hemostasis, have forged a global allianceschemes that are tailored to customer needs. As an integrated supplier of instrument, reagents, service and support,with Siemens. This agreement is designed to leverage syner-

we propose solutions intended to raise testing efficiency

gies between the two companies by using Siemens reagentsand quality. In the field of immunochemistry, we are steadily

and Sysmex instruments, fortifying our leading share of theincreasing the reagent categories we offer. In addition to

global market.

augmenting our in-house offerings of hemostasis reagents,

Our core strategy to Focus on Asia prioritizes non-we are expanding our portfolio in the areas of clinical chem-

hematology fields. In the rapidly growing Chinese market, we

istry and microbiology testing and taking advantage of ourare developing business in nearly every category within in

top-class sales and service network to propose solutions invitro diagnostics, and we have already secured the top market

this market.

share in hemostasis. We are making steady progress in thefield of urinalysis, and have begun to cultivate the immunochemistry and clinical chemistry markets. To ensure a stable
and secure reagent production and to raise cost competitiveness, we plan to expand the number of product categories
manufactured by our Wuxi Factory, our second reagent plantin China, to include reagents used in clinical chemistry andother fields.
Healthcare environments vary widely by area in the
Asia-Pacific region, running the gamut from emerging

Non-hematology segment
Targeted sales by destination(¥ billion)

50

46.8
43.3

market to advanced country infrastructures. Emerging
countries are generating particularly steady healthcare

40

30

our marketing efforts and helping organizations obtain ISO
certification, Sysmex is taking unique, and essential, steps

2.0

1.7
5.2

6.3

1.7
4.7

demand increases, as these countries build up their healthcare infrastructures. Through initiatives such as redoubling

38 2
38.2

40.0

20

9.7

0

7.2

10.9

7.7

8.3

4.2

4.4

4.7

5.0

20.0

20.3

20.6

21.2

2009

2010

2011

2012

to add value.
10

2.5(Years to March 31)
n Japann Americas

n Chinan Asia Pacificn Europe

Sysmex Annual Report 200915

Key Strategies for Future Growth

3. Accelerating Commercialization of the Life Science Business

16

R

ecent breakthroughs in technologies for testing genes

to manufacture and sell in Japan a reagent for this systemand proteins are turning previously unattainable

as an diagnostic product, followed by ministry approval ofhealthcare possibilities into feasible options. Meanwhile,

its insurance points in November. As the testing method

rising healthcare costs have become an important social

constitutes a new testing technology, the clinical trial andissue, particularly in advanced countries—a situation that

evaluation process will require some time. Meanwhile, we areencourages a focal shift in healthcare policies from treatment

accumulative further expertise, gaining hands-on experienceto prevention. Sysmex’s concept of disease management iswith medical equipment and earning recognition from thewell positioned for this market focus. We believe in providing

clinical community. In the future, we will work toward producthealthcare tailored for individual patients, doing our utmost

launches in the United States and other major world markets.

to keep diseases from occurring in the first place, and when

We also hope to use this technology in the metastatic diagno-

they do occur, preventing them from growing worse.

sis of colon, stomach and other types of cancer. The Company
is also stepping up its R&D efforts with a view toward

At present, we are taking an approach toward such illnesses as cancer and diabetes that combines the technicalepoch-making breakthroughs in screening for cervical cancer

expertise we have cultivated through in vitro diagnostics withand diabetes-related developments. We have also formed an

evolving life science technologies. Through this initiative, we

alliance on clinical development and sales with Affymetrix

aim to promote the development of valuable new testing(U.S.), the world’s largest manufacturer of DNA chips, and wetechnologies. Including its overseas affiliates, Sysmex is taking

are progressing toward business development.
Moving forward, we will continue cultivating the market

a groupwide approach toward converting life science into aand expanding our product portfolio, as we work to turn life

viable business.
Europe was the initial launch market for our first productscience technologies into commercial successes. Ultimately,in the life science category, a lymph node metastasis detec-

we aim for life science to become a driver of future growth,tion system for breast cancer. In June 2008, Sysmex obtained

accelerating the Company’s overall growth.

approval from Japan’s Ministry of Health, Labour and Welfare
Future R&D Directions
Contributions to disease management
Hematology
diseases

Diagnostics
for “Prevention”

Diagnostics
for “Diagnoses”

Expansion ofareas covered

Infectious
diseases
Immunediseases
Diabetes

CancerLifesciences

Hematology, hemostasis, etc.

Add our own value in basic technology and create new testing technologies

Sysmex Annual Report 2009

4. Strengthening R&D

I

The new configuration allows us to refigure our productn addition to its vital role in healthcare standardization andquality improvement, testing is helping healthcare makeflow, from R&D through to commercialization. We will takethe shift from supporting treatment to disease prevention.

advantage of the facility to foster increased collaboration

Based on the concept of “disease management,” which entails

between healthcare and R&D institutions, and to speed ourproviding high-value testing that enables the optimum treat-

own R&D.

ment to be selected for each individual patient, Sysmex iscurrently working on the creation of new, clinically effective
testing technologies targeting hematology diseases, immune
diseases, infectious diseases, cancer and other illnesses.
Fiscal 2009 marked the grand opening of Technopark,
representing the expansion of Sysmex’s R&D facilities.
Technopark integrates Sysmex’s research and science with its
development and engineering, giving it a suitably prominentrole for a technology-oriented company such as Sysmex.

5. Strengthening the Corporate StructureT

he race for corporate survival grows increasingly com-

supply chain efficiency and augmenting our risk management

petitive. To reinforce our corporate structure, we aresystem in line with our expanding scale of operations.

promoting initiatives to lower costs and raise efficiencies.

We are also in the process of reconfiguring our human

From an environmental standpoint, we are working toresource system, making human resource training a major

reduce the environmental footprint of our products, by using

focus. As a result, we aim to develop globally proficient

fewer resources in manufacturing and making products moreleaders of change who can skillfully guide the Company into

lightweight. These initiatives also help lower production andthe future.

logistics costs.
As Sysmex continues to expand globally, the Group isstrengthening its business management. To this end, weshare management information through a global enterprise
resource planning (ERP) system. We are also promoting higher

Sysmex Annual Report 200917

Key Strategies for Future Growth

Net Sales and Operating Income by Geographical Region
Sysmex is using the combined strengths of all Group companies in its global business development togenerate sales tailored to regional needs.

18

Japan

Americas(Including Korea, Taiwan and Mongolia)(U.S., Canada, Central and South America)(¥ billion)

Europe(¥ billion)

Interarea Transfer: Exports to Group affiliates
Sales to Customers: Including Korea, Taiwan and Mongolia
Operating Income

100(¥ billion)(¥ billion)

Sales

Operating Income

15

40

12

32

75.2
69.1

39.6
31.5

32.3

Operating Income

10

50

8

40

8

38.2
35.4

35.1

25.5
9

24

6

16

23.4

6

35.4

6

30

4.9

40

10
41.4

29.7

70.7

60

(¥ billion)

Sales

34.5

82.0
80

(¥ billion)

5.6
5.1

5.1
4.5

4

20

4

2

10

2

0

0

3.6
4.6
3.3

2.8

20

4.1

2.6
3

8
1.8

0

37.6

38.4

39.8

42.4

2009

2010

2011

2012

0

0

2009

2010

2011

2012

0
2009

2010

2011

2012

(Years ended March 31)

Asia Pacific

China(Excluding Korea, Taiwan and Mongolia)(¥ billion)(¥ billion)(¥ billion)(¥ billion)

Sales

Operating Income

Sales

Operating Income

15

14.6

2.5

7.5

2.0

6.0

7.1

12.9
12

6.4
2.0

11.1
10.1

5.9

1.2

5.4

1.7
1.5

4.5

6

1.0

3.0

3

0.5

1.5

0.0

0.0

9

0.9
0.90

1.4
1.3

0.75

0
2009

1.5

2010

2011

Sysmex Annual Report 2009

2012

0.65

0.65

0.6

0.3

0.0
2009

2010

2011

2012

Note: Net sales by geographical region refers
to the sales amount made by a Group
company in a particular location.
However, net sales by destination isdefined as the sales amount recorded
by Group companies to customers ina particular region.

Business Activities

Sysmex provides the instruments and reagents needed for hematology,
hemostasis and other tests to customers around the world.

19

Sysmex Annual Report 2009

Business Activities

Sysmex at a Glance

Business Segments

Sales Composition by Business(¥ million)

120,000

110,724

111,843

101,041

20

n Diagnostics

87,88890,00095.1%

n Hematology

63.7%
12.5%
n Immunochemistry 2.4%
n Clinical Chemistry 2.2%
n Urinalysis
7.3%
n POC Testing
2.5%
n Others
4.5%
n Hemostasis

76,93560,000n IT

Net Sales¥111,843 million

2.8%
2.1%

n New Business(Particle-analysis, etc)
30,00002005

Product Segments

2006

2007

2008

2009

110,724

111,843

Sales Composition by Product(¥ million)

120,000

101,041
87,88890,00076,935n Instruments
n Reagents

60,000n Maintenance

34.1%
43.8%

services

8.7%

n Others

13.4%

n Japan

32.0%
20.9%
31.7%
9.1%
6.3%

Net Sales¥111,843 million

30,0000Regional Segments
by Destination

2005

2006

2007

2008

2009

Sales Composition by Destination(¥ million)

120,000
110,724

111,843

101,041
87,88890,00076,935n Americas
n Europe

60,000n Chinan Asia Pacific

30,0000

Sysmex Annual Report 2009

2005

2006

2007

2008

2009

Net Sales¥111,843 million(¥ million)S

ysmex derives approximately 95% of its revenues from the diagnos-

2005

2006

2007

2008

2009

n Diagnostics

71,76181,75093,581

103,801

106,316n Hematology

44,176

52,11860,216

68,414

71,216its principal customers. More speciﬁcally, our main ﬁeld of business is

n Hemostasis

11,195

12,15014,145

13,834

13,970hematology, which involves measuring the number and type of red,n Immunochemistry

4,613

4,061

3,400

2,866

2,639

white and other blood cells. This business accounts for around 65% ofn Clinical Chemistry

3,179

3,008

2,760

2,667

2,479

net sales. Hematology uses speciﬁc reagents, and the sale of hematol-n Urinalysis

4,748

5,142

6,295

7,509

8,154

ogy instruments leads to an automatic and sustainable source ofn POC Testing

2,578

3,444

3,823

3,995

2,793

revenue through the sales of reagents.

n Others

1,272

1,825

2,938

4,513

5,062

n IT

3,222

3,812

4,807

4,399

3,145

n New Business

1,952

2,325

2,652

2,522

2,381

tics ﬁeld in the business of testing samples of human body ﬂuids,

such as blood and urine, with hospital and commercial laboratories as

Sysmex also operates in the IT ﬁeld, providing testing information
systems to meet demand for network systems to manage medical data.
There are synergies between this business and the ﬁeld of diagnostics.
The Company also provides such products as inﬂuenza testing kits forpoint-of-care (POC) use by general practitioners and clinics.
Applying the specialized particle analysis technologies it has
cultivated in the diagnostics ﬁeld, Sysmex is also expanding into otherbusiness categories such as industrial and sports applications.

2005

2006

2007

2008

2009

n Instruments

27,24430,79037,847

38,95838,202Sn Reagents

34,635

39,14142,03847,297

48,966long-term testing and provide support and maintenance services.

n Maintenance

5,486

6,773

8,127

9,668

9,684

9,569

11,182

13,027

14,80014,989(¥ million)

servicesn Others

ysmex enjoys a unique revenue structure. On one hand, we
conduct a stock type of business in which we sell the instruments

needed for in vitro diagnostics, oﬀer the speciﬁc reagents needed forReagents deliver higher gross proﬁt margins than instruments, while
instrument sales drive increased reagent usage. Therefore, this segment
should generate stable earnings growth.
Sales of reagents and the provision of maintenance andother services currently account for approximately 65% of net sales.
Industrywide, sales are trending upward, with instrument sales focusedon the second and fourth quarters of the ﬁscal year.

2005

2006

2007

2008

2009

n Japan

33,40735,41837,87335,96135,828Sn Americas

13,633

15,762

19,227

20,90823,414business development in China and the Asia Paciﬁc region, and thesen Europe

21,23525,43831,65839,23535,454n China

4,824

6,411

6,848

8,128

10,111n Asia Pacific

3,836

4,857

5,432

6,492

7,036

(¥ million)

ysmex supplies products and services to customers in morethan 150 countries. Net sales* are well balanced among three

key regions—Japan, Europe and Americas. We are also accelerating
rapidly growing markets constitute a steadily increasing percentage ofconsolidated net sales.

* Net sales by destination is deﬁned as the sales amount recorded by Group companies tocustomers in a particular region. However, net sales by geographical region refers to thesales amount made by a Group company in a particular location.

Sysmex Annual Report 200921

Business Activities

Testing Essential to the Realization of a Healthy Society
22

Clinical testing, used in medical diagnosis and treatment or in monitoring the eﬀects of drug administration, is essential to the realizationof a healthy society. Clinical testing can be broadly divided into two
categories: in vitro diagnostics (IVD) that involve the examination ofblood, urine or cell samples taken from the body and in vitro tests thatinvolve direct examination using X-rays, electrocardiograms (ECGs)
or brain waves. The global in vitro diagnostics market is worth some

$34,700 million. Sysmex provides a wide variety of products andsupport services, ranging from individual instruments and reagents forin vitro diagnostics to full laboratory information systems.
Sysmex now ranks 9th in the world in the in vitro diagnostics
ﬁeld. We also command the leading share of the global hematology
segment.

Diagnostics Market and Sysmex’ s Position

Market Share

Segment

Market Size ($ million)

IVD Total$ 34,700

Hematology

1,800

Hemostasis

1,000

Immunochemistry

8,200

Clinical chemistry

4,300

IVD Total$34,700 million

380

Urinalysis(Urine sediment

Roche
AbbottBeckman Coulter
bioMérieux
SysmexOthersSiemens
J&J
Bayer Diabetes
Becton Dickinson
Inverness

130)

Diabetes

8,400

Others

10,620(Sysmex estimates)

The Shift to an Aging Society and Preventive Medicine
As the societies of Japan and other advanced countries age, countries
are implementing healthcare reforms to extend the healthy lifespanof their populations in a bid to rein in rising healthcare costs. This hasbrought about a worldwide shift toward preventive healthcare.
In April 2008, Japan introduced a new system of speciﬁc healthchecks and speciﬁc healthcare education, aimed at insured individuals aged between 40 and 74 years, with the goal of preventing andimproving metabolic syndrome (a collection of metabolic risk factors
for cardiovascular disease and diabetes). The focus on metabolic
syndrome involves gaining a picture of visceral fat accumulation

before any disease onset and is aimed at preventing lifestyle-relateddiseases—such as diabetes, hypertension and lipid abnormalities—that
account for 30% of national healthcare spending. As such, clinicaltesting is expected to play an increasingly important role in Japan andthe rest of the world.
As well as such progress in preventive healthcare, there is anincreasing emphasis on improving patient quality of life (QOL).
Sysmex is cultivating new testing technologies that combine in vitro
diagnostics and the life sciences. Through testing products, we aim tocontribute to healthcare quality and eﬃciency.

From Focus on Treatment to Focus on Prevention

FutureCurrent

Promotegenetic
technologies

Pharmaceuticals

Healthcare
costs in Japan¥33 trillion

Sysmex Annual Report 2009

Use new technologies toforge new markets

Testing
Imaging

In vivo diagnostics

Physicians

Human resources,
facilities and other

Desire to live
healthier,longer lives

Pharmaceuticals

Pharmaceuticals

In vitro diagnostics
Testing Testing centers(interpretation)

Healthorientation

Curtailhealthcare
costs

In vitro diagnostics+ life sciences
Testing centers
In vivo diagnostics

Imaging

Physicians(interpretation)

Imaging

Offer new value while
contributing to better
treatment and lower costs

Physicians(interpretation)

TestingDiagnostics
Hematology

Clinical Chemistry

Hematology tests are a type of screening that count red, white or other

Clinical chemistry involves examining the enzymes, sugars and proteinsblood cells to determine whether a more detailed examination is neces-in blood serum and plasma to determine the nutritional status, liversary. In addition to instruments, these tests require specific reagents,

and kidney functions, and testing for contraction of conditions such as

which constitutes an ongoing demand. Sysmex estimates that thehyperlipidemia and arteriosclerosis.

global hematology market accounts for annual sales of ¥1,800 million.

Like hematology, clinical chemistry is commonly performed around the

Furthermore, the market is dominated by only three major suppliers:

world not only at times of illness, but also during routine health checkups.

Sysmex, Beckman Coulter and Abbott.

Accordingly, the total number of examinations is extremely high.

Hemostasis

for sales of $4,300 million. In Japan, we have a high share of the market for

Hemostasis involves testing for coagulation, an important function

quality control serum used with various general-purpose reagents.

Sysmex estimates that the global clinical chemistry market accountsof the blood. By testing specimens of blood plasma, it is possible to diagnose hemophilia and thrombosis and to examine hepatic (liver) function.
As a rule, hemostasis tests can be performed using general-purpose

Urinalysis
Urinalysis entails testing for the presence of sugar, protein or blood inreagents, rather than specific reagents. However, analysis data varies

urine and can be broadly divided into two types: qualitative urinalysis

slightly depending on the reagents used, and the need for precise

and quantitative urinalysis. Urinalysis is an important screening tool that

control has caused sales of specific reagents to represent a high share of

typically yields clues for diagnosing a number of diseases.

the market.

Sysmex estimates that the global urinalysis market accounts for sales

Sysmex estimates that the global hemostasis segment generates

of $380 million, including $130 million from urine sediment analysis. We

annual sales of $1,000 million. In 1995, we concluded a distribution

introduced the world’s first urine formed sediment analysis system—theagreement with Siemens (previously, Dade Behring Inc.), forging a

UF series—that uses the flow cytometry method. This series enjoys ansynergistic relationship that reinforced our respective strengths in the

excellent reputation with customers and has the leading share of thehematology segment. As a result, we now enjoy the leading share of the

global market for urine sediment analysis.

global market for coagulation analyzers.
POC Testing
Immunochemistry

POC is an abbreviation for point-of-care. POC testing can be carried out

Immunochemistry tests are performed on blood serum, the supernatanton the spot in operating rooms, intensive care units, clinics or at thefluid isolated after blood separation. Antigen-antibody reactions are used topatient’s bedside, rather than in central laboratories, making possible

test for the presence of HIV and hepatitis and to look for cancer markers.

rapid diagnosis and treatment. Currently, Sysmex markets rapid detec-

Manufacturers of analyzers apply their own measurement principles,and specific reagents depend on the principles used. Sysmex estimatestion kits to assist in influenza diagnoses and easy-to-use devices tomeasure intravesical urine volume.

annual sales in the global immunochemistry market at $8,200 million,
and the market is expected to expand.
In October 2007, we launched the HISCL-2000i, a fully automatedimmunoassay analyzer that enables highly sensitive, high-speed assays.
The model’s market popularity has grown, and we have expanded our
lineup of related reagents, boosting our share of the immunochemistry
testing market.

IT

New BusinessLaboratory Information Systems

Particle Analysis and Healthcare

Advances in information technology have generated demand in the

The particle-analysis segment is a new business area for Sysmex. We

healthcare industry for IT-driven medical information networks.

are developing industrial applications for particle-analysis technology

Such networks contribute to effective diagnoses by collecting andthat we originally developed for our mainstay hematology business. This

analyzing test data and consolidating this information into a convenienttechnology is used in many industrial processes, including research anddatabase. Sysmex plans to accelerate its IT deployment to expand

quality control of copier toner and ceramic particles.

business with hospitals, clinics and remote medical care capabilities.

In the healthcare segment, peripheral artery monitoring devices thatcan measure hemoglobin levels without blood sampling are used at fitness centers and various other sites. Sysmex also sells support software
for health management and childcare services.

Sysmex Annual Report 200923

Business Activities

Major Products
Diagnostics
Hematology

Specialization

24

XE

XT

XS

HST

High End

MiddleLow End
HST
XE-5000
XS-1000i

XT-4000i

This compact, highly functionalmodel features the same measurement principles, reagents andoperability as models in the highend XE series. This space-saving
unit offers the ability to analyze
five types of white blood cell, as
well as excellent measurement
data interchangeability. For thisreason, it is suitable not only foruse in hospital laboratories, butalso for POC testing at clinics andemergency laboratories.

This basic, compact model
is supported by the Sysmex
Network Communication
Systems (SNCS), and featuresa viewer-friendly screen and aneasy-to-use operating system.

pocH

The XE-5000 is the high-end
model in the XE series, which isshipped with software to measure immature cells in the bloodas standard instrument. The addition of a function to measure
blood cells found in extremely
small quantities in body fluids
means that fully automatedmeasurement can be completed
within two minutes, comparedto the 60 minutes required for a
microscopic examination.

KX

Information Diversity

pocH-100i

KX-21

Featuring compact size andeasy operation, this counterallows high-precision measurement results and makes it
possible to perform hematology simply in diagnostic andtherapeutic settings.

Featuring compact size andeasy operation, this analyzer
provides valuable blood test
data such as the white blood
cell, three-part differential inless than one minute.

The HST series offers fully automated blood cell counting,including white blood cell differentials, reticulocyte analysis,
preparation of smears and staining. Multiple system configurations are available to meet the needs of individual laboratory
requirements.

XE-Alpha N
Fully automated blood cell counting, white blood celldifferentials, reticulocyte analysis, preparation of smears
and staining are carried out by a compact system, ensuring
efficient workflow and improved test precision. The SP1000i Slide Preparation Unit (to the left in the photograph)is a network-capable system for automatically preparing
hematology slides.

Reagents

A full lineup of reagents is available forall diagnostic needs, including hematology, hemostasis, immunochemistry,
clinical chemistry and urinalysis.

Efficiency and Handling Capability

Scale of Laboratory

Hemostasis

CS-2000i

CA-500 Series

CA-7000

The CS-2000i analyzer employs a 4th method, agglutination,in addition to the 3 fundamental measurement methodsthe coagulation, chromogenic substrate and turbidimetricimmunoassay methods. Integrating all these testing methods
into a single station raises processing performance.

These compact, fully automated analyzers offer advantages of the CA series such as high precision and ease ofuse. Operation is simple, making these analyzers ideal for
emergency laboratories and for use at small and mid-size
institutions that test infrequently.

The top of the CA series product line makes possible ultrafast throughput of 500 tests/hour possible (for simultaneous
measurement of PT/APTT). The Secure Reagent System (SRS)
allows control of reagent names, lot numbers, and expiry
dates through automatic barcode reading.

Sysmex Annual Report 2009

Immunochemistry
HISCL-2000i
This model applies the chemiluminescence enzyme immunoassay (CLEIA) methodology to produce a highly
sensitive, rapid immunochemistry test system that can be used with reduced specimen quantities. The
model is designed for use by medium-sized hospitals. In a bid to establish our presence in the immunochemistry market, Sysmex released reagents for infectious diseases such as hepatitis B, hepatitis C, andHIV, and those for the detection of thyroid hormone markers. With the aim of expanding our offering of
measurement items, our R&D team is working on the development of reagents for detection of diseases andcoagulation molecular markers. In order to expedite the development of these reagents, we are also working
closely with our partner companies.
Note: Only available in Japan.

Urinalysis

POC Testing
UF-1000i

POCTEM S Series
P

The UF-1000i offers fully automated, highprecision, quantitative analysis of urine sediment using Sysmex’s proprietary technology
utilizing flow cytometry, further improving
the reliability of urinalysis.

T POCTEM S Series is a rapid influenzaTheddiagnostic kit that employs the immunochrom
matography method. Samples extracted fromtthe body are dropped on test paper that canssimultaneously determine the presence ofIn
Influenza A and B.
Note: Only available in Japan.

Life SciencesRD-100iIT

LYNOAMP BC

This gene amplification detector, which extracts and amplifies genes in lymphatic
tissues in order to detect lymph-node metastasis, is the first commercial offering forclinical use from the Company’s life science line. The detection system, which consistsof a dedicated reagent (LINOAMP BC) and analyzer (RD-100i) licensed by the Ministryof Health, Labour and Welfare for manufacture and sale, represents the first Japanesetechnology of this type to automate metastasis determination and to be covered undernational health insurance.

CNA-Net
CNA-Net is a laboratory-information system provided by Sysmex subsidiary Sysmex
CNA. The system consists of independently operable subsystems for clinical chemistry,hematology, urinalysis and immunology testing. When used as an independent system,
CNA-Net is configured to encompass all processes from examination reception to
routine testing and test results reporting.
Note: Only available in Japan.

New Business (Particle Analysis, etc.)
FPIA-3000

SD-2000

The FPIA-3000 is a highly advanced particle measuring analyzer that incorporates
a CCD camera. The analyzer not only
measures particle size distribution, but it
also provides a great deal of information
on particle size and shape and makes it
possible to evaluate particulate matter thatwas previously difficult to analyze.

Through a combination of the electric
resistance method and sheath flow
technology, particle distribution is obtained
without complex correction and analysis
and the sizes and numbers of particles are
determined more accurately.

ASTRIM SU

PROWELL

This non-invasive blood vessel monitor
measures hemoglobin concentrations andblood-vessel width through near-infrared
spectroscopic images simply by placing afinger on the detector. There is no need forblood sampling.
Note: Only available in Japan.

PROWELL is a software package for use
with a quick health-check service offeredat healthcare corners in drugstores andother outlets in Japan. The service allows individuals to perform simple checks on theirstate of health by entering some basic bodymeasurements and answering questions onlifestyle and dietary habits.
Note: Only available in Japan.

Sysmex Annual Report 200925

Business Activities

Introduction to Hematology Technology
Depending on blood cell type, anywhere from several thousand to several million blood cells—red
blood cells, white blood cells and platelets—exist per microliter of blood. Hematology tests are essential for determining the number of blood cells that are responsible for oxygen transport, or hemostasis.
Sysmex employs two basic technologies—sheath ﬂow DC detection and ﬂow cytometry—to achieveprecise measurements at the microliter level.
26

Basic Principles Underpinning Sysmex’s
Hematology: Sheath Flow DC Detection

Detection chamber

Blood cells can be broadly divided into three categories:
red blood cells, white blood cells and platelets. Platelets are

Sheath solution(flowing into thedetection aperture)

the smallest in diameter, at around 2 micrometers, while
white blood cells are the largest, at around 15 micrometers.

Detection aperture

Sheath flow DC detection is the basic method for measuring
the number of blood cells and distinguishing their types by

Sheath solution(flowing out)

size. Broadly speaking, the method comprises three processes.

Accurate Dilution

Individual Passage through the Detection Aperture

Blood must first be diluted a certain amount to allow accurate
measurement of the number and size of cells. This process
reduces the number of cells per volume of blood and minimizes errors caused by blood cells piling up on top of eachother. Accurate dilution requires meticulous measurementof the quantity of blood and of the solution, or reagent. This
process requires micro-level precision in the design of themeasuring chamber and uses an apparatus that minimizes
degradation and abrasion.

Regardless of how accurately it has been diluted, a measured
sample (the diluted blood solution) will contain a large numberof cells. Lining up the cells in a row beforehand simplifies theprocess of counting them, so a stream of fluid*1 that forms asheath around the flowing blood cells is generated to align thecells. The cells flow along the stream*2 toward the detection
aperture, where cells are counted, and pass through its center.*3
Unidirectional flow prevents the stream*4 of blood cells fromflowing backward through the aperture once they have passed
through it.

Three Processes in Counting Red Blood Cells

Accurate dilution*1

Passing cells one by one
through the detection aperture: Red blood cell
: White blood cell
: Platelet

Sysmex Annual Report 2009

Development of Hematology Instruments
27
Fully AutomatedHematology Analyzers

Detection Method

Semi-AutomatedHematology Analyzers

As a constant electric current is passed through a solution, this method measuresthe changes in electrical resistance that occur when blood cells pass throughdetection aperture.
ResistanceV–

Detectionchamber

CC-1001

CC-710CC-710CC-1001

1964
1965

CC-10021970

CC-1071975

CC-108Time+
Platelet Red
blood
cell

White
blood
cell

CC-720 World’s first model

to include a sampler

1980
CC-800CC-800Counting Cells by Electric Signal
Blood cells do not transmit electric current easily, so cells in
the test sample cause resistance in a current applied acrossthe detection aperture through which they must pass.
Therefore, blood cells can be counted by measuring thenumber of times an electric resistance is generated. Larger
blood cells produce greater resistances, allowing the system
to distinguish cells by type.

CC-120CC-110CC-700CC-700E Series
E-5000E-5000/E-4000/
E-3000E-2500/
E-2000Fully AutomatedHematology Analyzers

CC-180CC-170CC-150CC-130CC-7801985

NE-8000

M-2000NE Series
NE-8000/NE-7000/
NE-6000

F-800
F-500
F-300

K-10001990

K-1000
NE-1500

K-2000

F-810
F-610
F-310

K-800

SE-9000
SE-9000

K-4500World’s first model to use
a semiconductor laser

F-820
F-520

1995

SF-3000

KX-21

XE-2100
World’s highest
processing capacity

Counting cells by
the electric signals

*2

2000
KX-21N

Middle Range*4

pocH-100i

XT Series
XT-2000i/
XT-1800i*3

Stream of fluidthat forms a sheath

KX-21NHigh EndXE Series
XE-2100/XE-2100L/
XE-2100D

pocH-100i

Low End
XS Series
XS-1000i/
XS-800i
XE-5000

2007
2008

XS-1000i
XT-4000i

2009

Sysmex Annual Report 2009

Business Activities

28

Capturing more information: Flow Cytometry
Laboratory tests must be reliable to be useful in diagnosis
and treatment, and the medical community needs access tomeasurement results that add value. Sysmex is addressingthese needs through a sustained program of technologicalinnovation. Accordingly, we are progressing from the present
method of counting blood cells to using flow cytometry toanalyze their internal contents.
With flow cytometry, the target cells are stained witha special reagent and then irradiated using a laser diode tocapture information on cell size and internal structure. Thismethod enables detection of the five different types*5 ofwhite blood cell, as well as of any abnormal cells. Flow cytometry provides clinically important information, as the distribution of the five types of white blood cells differs according to
the disease present.
*5 : Each of the five types of white blood cell—neutrophil, lymphocyte,monocyte, eosinophil and basophil—has a different shape and function.

The sampling valve is an important component that is essential for
accurately determining blood quantities. Sysmex manufactures thesesampling valves, applying rigorous quality inspections to each one.

Flow Cytometry
With flow cytometry, the number of red blood cells and platelets are first shrunk through the action of a surfactant. The target
white blood cells are nucleic-acid stained and irradiated with forward-scattered light, side-scattered light and side-fluorescence
using a laser diode. The light signals are then analyzed to categorize the blood cells.
Conceptual Diagram

Captured Information

Side-fluorescent light

Lateral fluorescent light intensity
Information on RNA and DNA amounts

Side-scattered light intensity
MirrorInformation concerning the internal
structure of cells (nucleus shape,presence of cell granules, etc.)

Side-scattered light

Forward-scattered
light intensity
Information on cell size

Semiconductor laser

Sysmex Annual Report 2009

Detector

Forwardscattered light

Laser irradiation

Functional Structure

As a comprehensive diagnostics supplier, Sysmex has built an integrated
business encompassing R&D, production, sales and after-sales support toprovide products and services to healthcare facilities around the world.
29

Sysmex Annual Report 2009

Functional Structure

Perspective
Throughout its R&D, production, sales and after-sales support processes, Sysmex works to build
customer satisfaction, peace of mind and trust.

30

S

ysmex is a comprehensive supplier of the instruments,

150 countries. By integrating R&D, production, sales and after-

reagents and software necessary for diagnostic testing.

sales support, We work to improve the reliability of diagnostic

With operations at 42 locations in 26 countries, Sysmex

and medical-treatment testing, thereby ensuring increased

provides products and services to customers in more thancustomer satisfaction and trust.

Global Supply Chain

Research and Development

Production (Instruments)

Sales and Support

Japan

Japan

Japan

<Technopark<Kakogawa Factory<Solution Center<R&D Center<7 branches, 12 sales offices=Sysmex Medica<Metropolitan Area Service Center=Sysmex RA

Japan

Japan

=Sysmex CNA=Sysmex International Reagents

Americas

Overseas

Overseas=Sysmex Belgium IT (Belgium)=Sysmex Reagents America (US)=Sysmex Canada (Canada)=Sysmex Infosystems China=Sysmex do Brasil Industria=Sysmex New Zealand (NZ)

Comerio (Brazil)=Sysmex Europe (Germany)=Jinan Sysmex

Medical Electronics (China)=Sysmex Wuxi (China)=Sysmex Asia Pacific (Singapore)=Sysmex India (India)=Sysmex America (US)=Sysmex do Brasil Industria

Comerio (Brazil)
Europe=Sysmex Europe (Germany)=Sysmex France (France)=Sysmex Middle East (U.A.E.)=Sysmex South Africa (South Africa)

China=Sysmex Shanghai (Shanghai)=Sysmex Hong Kong (Hong Kong)

Asia Pacific

Logistics
Japan =Sysmex Logistics

Overseas =Sysmex Logistics UK (UK)

=Sysmex Asia Pacific (Singapore)=Sysmex India (India)<: Sysmex Corporation=: Affiliated companies

Sysmex Annual Report 2009and others

Indirect Sales(Agent)(China)=Sysmex bioMérieux

Worldwide Customers

Production (Reagents)

Direct Sales=Sysmex TMC

Software Development

Research and Development

Instrument Production

Sysmex maintains a trilateral R&D

The Kakogawa Factory, which pro-structure centered in Japan and withduces all Sysmex instruments shippedfacilities in North America and Europe,

worldwide, provides a stable supply ofand the Company actively collabo-

high-quality products that meet therates with universities and researchstrict regulatory requirements for medi-

institutions throughout the world.

cal devices around the world. Sysmex

In 2008, the new Technopark was

products enjoy an excellent reputation

completed as a symbol of the “Creation

with customers. We have introducedof ‘knowledge’ and its inheritance” concept. Technopark serves as

quality and process management systems to ensure quality in all

the Company’s core R&D site used to accelerate research into newprocesses from the testing and assembly of components to productdiagnostic technologies and develop high-value-added products.

testing and shipment.

31

Sysmex America
Sysmex Europe: Regional headquarters: R&D network: Instrument production: Instrument supply: Reagent production: Reagent supply

Sysmex Asia PacificSysmex Shanghai

Reagent Production

Sales and Support

Sysmex emphasizes local raw material

In addition to a direct sales andprocurement and product manufac-

support network, the use of alliancesturing, as this approach allows stable

has enabled Sysmex to build a global

product supply and competitive

sales and support system tailored topricing. At present, the Company

meet local characteristics. In fiscal year

operates 9 reagent factories in 7

ended March 31, 2009, the Company

countries. In 2007, Sysmex completed

established companies to provide these

construction of a reagent plant in theservices in the Netherlands, Belgium,

United States that has doubled production capacity in that country.

Luxemburg and Dubai. Sysmex already operates independent

In addition, in 2008 the Company brought on-stream a reagent

networks in the emerging countries of Brazil, Russia, India and China

plant in India to capitalize on rapid market growth there, and we(BRICs) and is working to step up sales activities in other areas thatare currently working to achieve production stability and raiseare expected to experience high levels of market growth, including

production efficiency at that facility.

Central and South America, Eastern Europe and Africa.

Sysmex Annual Report 2009

Functional Structure

Research and Development
Through its focus on improving test quality, Sysmex has established core technologies, developed arange of “industry-first” laboratory test technologies, and is now actively engaging in life science R&D.

32

S

ysmex’s inimitable R&D activities began in 1963 when
it became the first company in Japan to commercialize

At Technopark, the creation and fusion of new technologies will be facilitated by interaction between researchers

hematology analyzers. Since then, the Company has worked

and engineers with expertise in electronics, mechanics, fluids,

to improve diagnostic test quality at the microscopic level

optics, software, biochemistry and other areas. Sysmex willof blood cells by establishing core technologies for particle
measurement or bioassays and developing a range of

R&D strategic planning“industry-first” laboratory test technologies.
Sysmex considers R&D to be one of its most important
Instrument development

functions and the key source of Company growth. Each year,
we invest approximately 10% of net sales in R&D to keep our
technologies at the leading edge. In October 2008, construc-Researchtion was completed on Technopark. This facility consolidates
the Company’s R&D activities, facilitates the sharing of
knowledge and expertise, and fosters collaboration to generate synergies.

R&D Strategic PlanningThis department sets groupwide technicalstrategies and product plans, manages acrossall development groups—research, instrument
development, reagent development andsoftware development—and oversees various
operations through to product commercialization. The department also researches andsupports registration under the PharmaceuticalAﬀairs Law and other Japanese and overseas
regulations when introducing products into
the marketplace.

Syyssmex
Sys
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Sysmex is working toward the establishment of a global R&D structure through suchactivities as collaborative research with domestic and overseas universities and research
institutions and broad-ranging support for theestablishment of overseas development bases.

Research
The Central Research Laboratories are key to
the Company’s research into novel diagnostic
technologies in the life science ﬁeld to meetglobal demand for better patient QOL. Sysmex

Reagent development
Software development

Intellectual property

is working to formulate new diagnostic
methods in the areas of cancer and diabetes.

Instrument Development
Sysmex employs a matrix system that draws
team members from mechanics, ﬂuids, optics,
electrical and other specialties. Team members
can share expertise and experiences outside
their areas of specialty. This ﬂexible development structure allows the Company to meetmarket needs.

also build systems for the integrated management of research,

Technopark

development and intellectual property as part of its efforts to

In October 2008, Sysmex unveiled the new Technopark as

develop revolutionary new technologies and unique products

the transformation of the core R&D facility formerly known

that will generate new markets.

as Techno Center. The Technopark will be used to acceler-

Sysmex has extended its business domains beyond

33

ate research into disease and biology and produce further

hematology to cover such laboratory test fields as hemostasis,

developments in life science technologies. The Technopark

immunochemistry, clinical chemistry, urinalysis and others.

will provide an R&D environment where talented researchers

We are now working to broaden our R&D activities evenand engineers can exchange information and freely generate

further to create new diagnostic technologies for disease

innovative ideas. It will also support further collaboration

management including hematology disease, immune diseases,

between research facilities in Japan and overseas, as well as

infectious diseases, cancer and diabetes.

the BMA Laboratory and R&D Center Europe.
At this central R&D facility, the Company will also step up
its development of instrument, reagent and software technologies, which it aims to combine with life science technologies to develop value-added laboratory and diagnostic tests inan aggressive bid to cultivate, plan and develop new business
opportunities.

Reagent Development

Software Development

Intellectual Property

In 2002, Sysmex converted International
Reagents Corporation (currently Sysmex
International Reagents) to a wholly owned
subsidiary, fusing International Reagent’s technology development capabilities in immunochemistry and clinical chemistry with Sysmex’s
strengths in hematology and hemostasis toconstruct one of the most advanced reagent
development organizations in Japan. Sysmex
is pursuing cutting-edge R&D through close
collaboration between the reagent development
and instrument development operations.

Sysmex has long focused attention on the
introduction of information technology into
testing operations and has developed software
to integrate test data management. In thissegment, Sysmex possesses highly specialized
technologies unmatched by any other company.
The Company has established an organization
for providing localized software by setting up
software development units in Europe, China
and Oceania.

The results of the Company’s research anddevelopment activities are rapidly converted
into valuable intellectual property by securing the rights to and making use of these
intellectual properties. In collaboration withthe research department and the instrument,
reagent, software and other developments,
the intellectual property department devises
patent application strategies, identiﬁes inventions and provides appropriate responses tothird-party intellectual property rights.

Syyyssmex
Sys
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Sysmex
me
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Ann
An
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Functional Structure

R&D Facilities

34

Sysmex creates high-value-added diagnostic technologies
and develops instruments and reagents mainly at the core
Technopark facility. By enhancing links with research anddevelopment centers in Japan and overseas, Sysmex works
to develop innovative technologies that will generate newmarkets.

BMA Laboratory

R&D Center Europe

The BMA Laboratory is located within the Business Support
Center for Biomedical Research Activities (BMA), a core facility
in the Kobe Medical Industry Development Project. The
Laboratory is researching methods
to predict anticancer efficacy anddeveloping protein chips that cansimultaneously measure protein
activity and expression.

The R&D Center Europe was opened in 2006 in Germany
as the Company’s first overseas research facility. Sysmex istaking advantage of this European location to cooperate withresearch and medical treatment
institutions in the development of
new testing technologies targeting
diseases and other problems thatare uncommon in Japan.

Sysmex Asano Laboratory

Sysmex CNA

The Sysmex Asano Laboratory is a research base foundedwithin the Kobe Translational Research Informatics Center(TRI) to pursue joint research with the cell therapy researchgroup of the Foundation for Biomedical Research andInnovation (FBRI). Under the direction of Dr. Shigetaka
Asano, Professor Emeritus, University of Tokyo, Sysmex
aims to develop new diagnostic technologies through joint
research at the laboratory on the efficacy of cell therapy andimproved safety profiles.

Sysmex CNA is the specialist IT company within the Sysmex
Group. Sysmex CNA specializes in medical information
systems over a broad range of fields and has built up a strong
reputation domestically in theclinical laboratory test field.

Sysmex Annual Report 2009

Purchasing, Production and Logistics
Rigorous quality control and global supply chain management systems allow Sysmex to swiftly provide
a stable supply of products of consistently high quality to customers in more than 150 countries.

A

consistent supply of top-quality diagnostic and medical-

worldwide. The Kakogawa Factory employs proprietary35

treatment test products is essential to medical caremanufacturing management and process control systems in all

support. Sysmex employs a proprietary, fully automatedstages of the production process, from raw material receipt tosystem that covers all procurement operations, giving the

product assembly and final delivery. The Company also works

Company a real-time grasp of raw material and component

to shorten lead times through the use of cell production andorder, delivery, and receipt and inspection status. This system

improve production efficiencies by forecasting global demand.

allows Sysmex to standardize at the R&D stage the selection
materials and components, thereby achieving swifter R&D and

Global Reagent Manufacturing
to Ensure Stable Product Supplies

better cost-competitiveness. Another R&D focus, which aim

In its reagent production, Sysmex employs thorough quality

to quickly launch new products into mass production, is on

management and makes every effort to provide reagents

transforming the engineering chain, including raw materials

consistently and stably. Our core production facilities inpurchasing and through concurrent engineering.

Japan are the Ono Factory and the Seishin Factory of Sysmex

of suppliers that can ensure stable delivery of appropriate raw

International Reagents, a subsidiary. Sysmex has substantially

Instruments Manufactured in Japanto Deliver High Quality

cut production lead times, cost of sales and inventories at

All Sysmex instruments are manufactured in Japan. The

The Company pursues production that capitalizes on the

Company uses cutting-edge production and quality control

characteristics of each plant. The Ono Factory is used fortechnologies because of the sophisticated and specialized

the mass production of reagents using automated facilities,

technologies that are required, resulting in a system that

whereas the Seishin Factory is used for the production of bulk

consistently delivers high-quality products to customers

biological reagents requiring advanced, specialized knowledge.

these two plants to increase global cost competitiveness.

Effect of Introducing Concurrent Engineering

Brought forward
Investment

After
introduction

Beforeintroduction

Time
Beforeintroduction Component development

DesignPrototype

Mass-production preparations

Mass production

Shortened
timeframe
Afterintroduction

Mass-production preparations

Mass production

Sysmex Annual Report 2009

Functional Structure

36

Sysmex seeks to strengthen and expand its global production

Production Facilities

system by actively transferring expertise developed at these

Sysmex factories promote upstream purchasing and areplants to overseas reagent production bases.

strengthening its unified development and production struc-

Sysmex is also expanding its overseas production bases

ture to move forward mass production. We are improving ourto meet growing overseas demand and improve its ability to

global supply chain management systems by reorganizing

compete. The Company currently has 7 production facilities inlogistics locations and reconfiguring supply flow.

6 countries. By introducing at overseas facilities the expertise

For instrument and reagent manufacturing, Sysmex

in manufacturing technologies that we have cultivated andpromotes upstream purchasing and is strengthening thethe quality assurance systems that are in place at our Ono andCompany’s unified development and production structure to

Seishin factories, we are working to achieve a high-quality,

enable early-stage mass production. Sysmex Trade Mission

efficient production system on a global basis.

Kakogawa Factory (Instrument Production, Japan)
The Kakogawa Factory is a production base for diagnostic
instruments that uses quality control systems to produce
highly reliable instruments based on international andindustrywide quality control standards, and the laws andregulations of destination countries. The plant provides thecapacity to supply a wide rangeof products to markets aroundthe world and employs flexible
production systems.

Ono Factory (Reagent Production, Japan)(Sysmex International Reagents)
The Ono Factory is dedicated to the high-volume production of about 400 reagents, centered on products for thehematology segment. The production lines are divided intosome types according to capacity,and the factory seeks to simultaneously increase quality, reduce costs,
and mass produce by optimizing
automated and manual operations.

Each individual “ruby pellet” is precision-processed for use in the detection
chamber of a hematology analyzer.

Sysmex Annual Report 2009

(STM), an electronic purchasing system that automates

Europe, the Company established a European parts center

complex ordering activities, helps reduce procurement costs

and reworked its system for supplying the parts needed

and strengthen groupwide production management.

for maintenance services. In the future, the Company will

For the logistics function that is responsible for delivering
final products to customers, Sysmex is improving its global

reinforce its IT-based logistics management system to allow
the groupwide sharing of inventory and order information.

supply chain management (SCM) system by reorganizing

For overseas reagent production, Sysmex has set up

domestic logistics locations and reconfiguring supply flow

reagent factories in Germany, the United States, Brazil, China,

overseas. In the United States, the Company reorganized its

Singapore and India to enable the stable and speedy supply ofreagent supply system in 2005, creating a logistics systemreagents to global markets.

that encourages direct communications with customers. In

Seishin Factory (Reagent Production, Japan)

Baddi Factory (Reagent Production, India)(Sysmex International Reagents)
The Seishin Factory is mainly responsible for the production of
bulk biological reagents and draws on wide-ranging production
technologies to produce a line of more than 1,000 products
ranging from clinical chemistry to immunochemistry reagents,
hemostasis reagents, and reagentsfor use as quality control materials.
The factory has also constructed a
flexible production system to meetrequirements for highly diverse,
low-volume manufacturing.

(Sysmex India)
This reagent factory in an industrial park in the state of Himachal
Pradesh will help ensure a steadyreagent supply to the Indian
market, which is expected to grow.

Neumünster Factory (Reagent Production, Germany)(Sysmex Europe)
Additions to this plant were completed in April 2007, approximately doubling its reagent production capacity. This
expansion responds to increased reagent demand in line withthe growing installed base of instruments in Europe. The Company
aims to reorganize and expand its
business base to allow a more stablesupply of diagnostic reagents andreduce cost of sales.

Chicago Factory (Reagent Production, United States)(Sysmex Reagents America)
In response to rising demand andto reinforce cost competitiveness,
Sysmex has built more facilities atthe site of its regional headquarters,Sysmex America Inc.

Wuxi Factory (Reagent Production, China)(Sysmex Wuxi)
Sysmex became the first non-Chinesecompany to receive local pharmaceutical manufacturing approval. The
Company became able to manufacture products needed in hemostasis,
clinical chemistry and sophisticated biotechnology applications.

Sysmex Annual Report 200937

Functional Structure

Sales and After-Sales Support
Sysmex focuses on regional business needs in its R&D, production, sales and after-sales support in
42 locations around the world. Sysmex has an excellent reputation with customers for its global aftersales support system.

38

Throughout its history, Sysmex has always set its sights onoverseas markets and adapted its business activities to

Building Regional Sales andAfter-Sales Support Networks

the requirements of markets in diverse geographical regions.

Sysmex operates a network of 7 branches and 12 sales offices

Today the Company engages in R&D, production, sales andin Japan and has established a sales and support structure

after-sales activities at 42 locations around the world andsecond to none in the diagnostics market. The Company

supplies products to customers in more than 150 countries.

provides multifaceted solutions for test efficiency andIn line with the core strategy of becoming the Global Niche

cost cutting, involving after-sales support that takes full

No. 1, Sysmex has established its position as the market leader

advantage of this extensive network. It now provides suchin the hematology segment in Japan, Europe, China and thehigh-value-added sales and after-sales support around theAsia Pacific region, as well as capturing the top share of theworld, having built support networks tailored to the various

global market. The Company is building on its current position

local markets.

by reorganizing business structures and working to expand

In Japan, the Customer Support Center responds tomarket share in the United States, the world’s largest market.

inquiries around the clock, 365 days a year.* Knowledgeable

Customer satisfaction survey results demonstrate that Sysmex

specialists answer questions not only about instruments andhas earned a solid reputation with its customers for the added

reagents, but also about scientific matters. Sysmex has es-value provided by its daily after-sales and online support

tablished a rapid support system by stepping up cooperation

services, as well as for its product quality.

between the Customer Support Center and Sysmex offices

Building on the foundations of its hematology business,and sales offices across Japan. The Company has further

Sysmex is working aggressively to establish itself as a solu-

enhanced after-sales support by consolidating the customer

tions provider in the diagnostics field.

after-sales support function in the Solutions Center, which

Customer Assessment in the United States (by MD Buyline)• Survey of Customer Satisfaction
A survey of customer satisfaction published in April 2009 has shown that Sysmex is ranked No. 1 in the United States. Sysmex is highly regarded by customers for the performance levels and reliability of its hematology instruments, and also for the quality and speed of its services.
April 2009

SystemPerformance

SystemReliability

Installation /Implementation*

Applications
Training

Service
Response Time

Service Repair
QualityComposite

Sysmex

8.8D

8.7D

9.0D

9.0D

8.9D

8.9D

8.9D

Beckman Coulter

8.4

8.0

8.3

8.6

8.2

8.1

8.3

Abbott

7.6

7.1

8.3

7.9

7.5

8.0

7.7

Siemens

7.6

7.4

8.9

8.8

7.6

7.4

7.9

D Best results in each assessment category“MD BUYLINE MARKET OUTLOOK”©All Rights Reserved. MD Buyline, Inc. 2008
* Installation/Implementation: Assessments covering stages from installation of instrument to operation.

MD Buyline, Inc., headquartered in Dallas, Texas, is a leading healthcare consulting industry leader that provides highly reliable data,
strategic analysis and advice based on objective information.

Sysmex Annual Report 2009

opened in 2005, and is opening a service center in the Tokyo

After-Sales Support System

39

metropolitan area in 2006.
* Service for customers who have maintenance contracts.

Customer

Online maintenance of customer instruments
Sysmex operates call centers in Japan, the United States,
China, Germany and Singapore, and dispatches service engi-

Field
engineer

SNCS*

neers to customer premises as necessary. In the United States,
where customer support functions must cover extensive

Operatorareas, close collaboration between call centers and service
engineers allows Sysmex to respond rapidly to customer

Technical
supportScientificsupportTechnical
specialist

Scientificspecialist

requests. This support system is now being used in China,
distinguishing Sysmex from the competition.
The Sysmex Network Communication Systems (SNCS) isa support service that connects the Customer Support Center

Customer Support Centerand customers’ products via the web for the online provisionof remote instrument maintenance and quality control. The
SNCS is used by many customers and has earned a strong*SNCS: A service that connects customer products with customer
support center terminals through a web interface to provide
online support and online quality control.

Sysmex Annual Report 2009

Functional Structure

40

reputation. Sysmex is now building on this success in Japan tocustomers gain ISO

roll out the system globally. The Company launched the SNCS

certification.

in the United States in 2006 and is steadily expanding the
installed base.

Sysmex sponsors
hematology seminars
around the world toSponsoring Scientific Seminars for
Advancement of Healthcare

provide physicians andTo promote higher levels of healthcare service, Sysmex pro-gists with information

vides an ISO support service for healthcare institutions thaton the latest trends

are creating ISO management systems. Levering the expertisein hematology. The

we have gained through ISO 9001 and ISO 14001 certification,

Company began

as well as our experience as a manufacturer of medical instru-

conducting annual seminars in Japan in 1978 and expanded

ments, we consult with organizations on earning certification

this program to China in 1998. Sysmex now runs seminars

under ISO 9001 and ISO 15189, as well as other standards.

and other activities in Thailand, Indonesia and India and holds

Our services have been instrumental in helping a number of

symposiums in Europe and North America.

laboratory technolo-

Sysmex Network Communication Systems
SNCS puts the Customer Support Center on line, enabling Sysmex to manage the precision of customer equipment in real time, automatically monitor equipment and provide information over the Web.

Online Quality Control
Precision management data is transmitted over the Internet ona daily basis. The system conducts sample surveys to determine
precision. Customers can browse up-to-the-moment survey resultsfrom anywhere in Japan. Using the system’s list viewing function,customers can see a glance the status of equipment at multiple
facilities across group medical institutions.

Online Support
Analyzers retain a host of data, such as error logs, numberof operations and set values. This information is transmitted
automatically to our server, allowing us to understand the statusof customer equipment and, if conditions warrant, offer advice tominimize potential damage. Remote diagnosis and image-sharing
systems help to accurately pinpoint failure locations so that we
can quickly provide necessary parts, to shorten down time.

Web Information Service
We communicate with customers via a specialized browser-based
e-mail application. Our web information service also offers casestudies of illnesses, literature lists and technical information.

Sysmex Annual Report 2009

Sysmex Network Communication Systems
SysmexHospital

Network

Customer Support Center

Automated hematology
analyzer XE-5000 andother Sysmex instruments

1. Online support
2. Online
monitoring
3. Real-time QC
4. Supply support
information

Corporate Governance

Sysmex considers reinforcing corporate governance one of its most important management topics. We aim to maximize the overall corporate valueof the Group through management robustness, better transparency andimproved management speed and efficiency.

Shaping the advancement of healthcare.

We continue to create uniquee and innovativevalues, while building trust and confidence.

With passion and flexibility, we demonstrate ourindividual competence and unsurpassed teamwork.

Sysmex Annual Report 200941

Corporate Governance

42

Management Organization

conduct of business on the part of the directors. The Board

Sysmex has adopted the corporate auditor system. The cur-of Auditors will continue to enhance management soundness

rent management organization consists of 8 directors (7 ofby engaging in appropriate supervision of the execution ofwhom are executive officers), 4 corporate auditors (including

business as stipulated by law. The Board of Auditors works

2 external auditors), and 14 executive officers. The Company

closely with the accounting auditors on the audit plans report

adopted the executive officer system and established the(annual) and the audit results reports (each mid-term andNominating Committee and the Compensation Committee infinal settlement of accounts) and exchanges information and

April 2005 in order to increase the speed of decision making inopinions with the accounting auditors as necessary.
The Company has contracted with Deloitte Touche

the conduct of business and respond quickly to changes in thebusiness environment.

Tohmatsu to perform a certified public accountants audit. In
addition to conducting an audit of the entire Sysmex Group,

Matters Concerning Business Execution,
Auditing, Appointments, Supervision andOther Functions

the Company maintains an environment that makes it possible to rapidly cope with changes in the accounting system.
The Company has contracts in place with several law offices

The Board of Directors consists of 8 directors. The Boardand maintains a structure to solicit and obtain advice onmeets regularly once a month to deliberate on important

important matters as necessary.

management issues and convenes extraordinary meetings asnecessary.
The Global Strategic Committee consists of the president
and managing officers. As a rule, this committee meets oncea month to deliberate on the Group’s management direction

Shareholders’ Meeting
Election/Dismissal

Election/Dismissal

Election/Dismissal

and important strategic issues.
The Steering Committee consists of the president, manag-

president to deliberate on important matters concerning theGroup’s business.

Board of Directors (Directors)

Nominating Committee

Compensation Committee

Board of Auditors(Corporate Auditors)

a month, in principle, serving as a consultative body to the

Accounting Auditors

ing officers and executive officers. The committee meets once

The Operating Committee consists of managers of divisions. The Committee meets once a month to find solutions

Auditing

Auditing
President & CEO

to cross-functional problems.
In the fiscal year ended March 31, 2009, the Board of
Directors met 16 times, the Global Strategic Committee 6
times, the Steering Committee 20 times, and the Operating

Global Strategic
Committee

Internal Audit Office

Steering Committee

Risk Management
Committee

Committee 16 times to address matters relating to management strategy and important issues facing the Group.
The Board of Auditors consists of 4 corporate auditors,

Executive Officers

2 of whom are external auditors. The corporate auditors
attend the Board of Directors and Steering Committee meetings and maintain systems for appropriately supervising theSysmex Annual Report 2009

Divisions, Subsidiaries and AffiliatesDirectors

43

Front row, from left: Hisashi Ietsugu, Kenichi Yukimoto
Back row, from left: Kazuya Obe, Yukio Nakajima, Masayoshi Hayashi, Shigenori Ohigashi, Koji Tamura, Mitsuru Watanabe

Hisashi Ietsugu

Yukio Nakajima

President and CEO

Member of the Managing Board and Executive Officer
Managing Director
Corporate Business Planning, Corporate Business Administration,
Human Resources & General Affairs, Corporate Executive Office

Kenichi Yukimoto
Member of the Managing Board and Executive Officer
Senior Managing Director
CSR Promotion Div.

Masayoshi Hayashi
Member of the Managing Board and Executive Officer
Managing Director
Business Management (Japan), Sales & Marketing, Scientific Affairs,
Customer Support

Shigenori Ohigashi
Member of the Managing Board and Executive Officer
Managing Director
Quality & Environmental Management, SCM,
Manufacturing Management, Instrument Production

Koji Tamura
Member of the Managing Board and Executive Officer
Managing Director
IVD Business Development, Life Science Business Development,
Scientific Instrumentation BusinessKazuya Obe
Member of the Managing Board and Executive Officer
International Business Management,
Sysmex America, Inc., Sysmex Europe GmbH, Sysmex Shanghai Ltd.,
Sysmex Asia Pacific Pte Ltd.

Mitsuru Watanabe
Member of the Managing Board and Executive Officer
R&D Strategic Planning, Intellectual Property, Central Research Laboratories,
Diagnostics System Development, Diagnostic Reagent Development,Life Science Business Development

Sysmex Annual Report 2009

Corporate Governance

Basic Policy on Internal Control Systems
and Their State of Development

The Company shall endeavor to discover foreseeable risks,
select the most important of these risks, clarify the sections
responsible for coping with risks, establish countermeasures

44

Systems for ensuring that the execution of duties
by directors and employees is compliant with thelaw and the Articles of Incorporationand engage in measures to mitigate risks.

Sysmex defines compliance as “the conduct of open and

Systems to ensure that directors execute theirduties efficiently

aboveboard business activities on the basis of observance

The Company has positioned the Board of Directors as theof laws and regulations and high ethical standards” and will

institution to make important management decisions andmaintain a system to ensure compliance as described below.

supervise the execution of the Company’s business affairs.

The Company is promoting and enhancing Group compli-

The Company has introduced the executive officer system toance, as it believes compliance countermeasures are thebe capable of making swifter operating decisions and respondfirst and most important way to maintain society’s trust andquickly to changes in the business environment.

counter risk. The Company shall implement and strengthenWith respect to the management of business, thecompliance in the corporate group under the control of aCompany shall ensure the efficient execution of businesscompliance officer and compliance committee. The Company

in accordance with the organization regulations, scope ofshall rigorously ensure compliance through education andauthority regulations, and approval procedure. The Company

training for directors and employees, promote the rapid

shall establish mid-term plans and annual management plans,detection and correction of violations of the law or theperiodically confirm the progress made with those plans, andArticles of Incorporation by means of an internal compliancetake any necessary measures.

related reporting system, and conduct audits of the compliance structure by means of the Internal Audit Office.

Systems to ensure the appropriateness of businessactivities in the corporate group

Systems for the retention and management of
information relating to the execution of duties bydirectors

The Company shall ensure compliance in accordance with the

The Company shall appropriately retain and manage informa-

established with respect to risk management, the Company

tion relating to the execution of duties by directors in accor-

shall maintain groupwide risk management systems based

dance with document management regulations and maintainon those regulations. The Internal Audit Office shall conduct

the information in a state available for inspection as necessary.

groupwide internal audits.

Regulations concerning the management of risk
and other systems

the Company shall respect the autonomy of the management

To maintain a structure concerning risk management, thebusiness activities throughout the corporate group by suchentire Group shall comply with risk management regulations

means as periodic reporting on the details of the businessestablished by the Risk Management Committee for theof affiliated companies and advance discussion concerning

integrated management of risk throughout the Company.

important matters.

compliance code applied to all the directors and employeesof companies in the Group. In conformance with regulations

With regard to the management of affiliated companies,

Sysmex Annual Report 2009of affiliated companies and ensure the appropriateness ofAlthough the Company does not assign full-time staff to assist

Systems for reporting to the corporate auditorsand systems for ensuring effective and efficient
auditing by the corporate auditors

corporate auditors in the performance of their duties, employ-

If a director discovers a violation of the law or the Articles

ees of the Internal Audit Office cooperate with the corporateof Incorporation or a material fact that poses risk of causing

auditors to conduct efficient audits at important places ofsignificant damage to the Company, the director is respon-business.

sible for promptly reporting that fact to the Board of Auditors.

Assignment and independence of employees toassist corporate auditors

At the request of the corporate auditors, the Company shall

The corporate auditors shall attend Board of Directors andprovide full-time staff to assist the Board of Auditors. In suchother important meetings, read important documents such ascase, the directors shall discuss with the corporate auditors inapproval requests, and request explanations of directors andadvance matters such as the transfer of such support staff.

employees as necessary.

Corporate Auditors
Haruyoshi Kobayashi
Standing Corporate Auditor

Toshiyuki Miyauchi
Standing Corporate Auditor

Hiromu Fujioka
Corporate Auditor

Isamu Inamasu
Corporate Auditor

From left: Haruyoshi Kobayashi, Hiromu Fujioka, Toshiyuki Miyauchi, Isamu Inamasu

Sysmex Annual Report 200945

Corporate GovernanceCompliancecompliance to remain a Company that stakeholders consider

Sysmex has established a compliance code to be observed

highly trustworthy.

by all executives and employees of the Sysmex Group in
Japan and overseas. The Company’s view of compliance isdefined as “the conduct of open and aboveboard business
46

activities on the basis of observance of laws and regulations
and high ethical standards.” Various training activities areunderway, including groupwide programs on the introduction* The campanula is also commonly known as the bellflower for the
shape of its blossoms. Sysmex’s Campanula Lines are so named to
evoke an awareness that all employees have the ability to “ring a bell”
on actions that are or could be considered non-compliant.

Risk Managementof the compliance code, to ensure that all employees have a

Sysmex has raised the bar on risk management by promoting

thorough understanding of the code. The Company has also

these activities from a divisional level to a companywide

appointed Compliance Training Managers in each Grouprisk management system. In 2007, the Company establishedcompany.

a Risk Management Committee to steadily address risk

In 2007, Sysmex looked to combine its compliance andrisk-management systems and began managing complianceresponses, prioritized according to importance.
In terms of quality, Sysmex is working to improve internal

activities on a groupwide basis under the direction of a newly

quality assurance levels and to further improve its quality

established Risk Management Officer. The Group Compliancemanagement system (QMS). Moving toward the establishment

Sub-committee meets periodically to confirm the implemen-of a groupwide QMS, Sysmex is pursuing ISO certification

tation status of the Compliance Promotion Plan and deliber-

centered on the Quality Assurance Department. The Company

ate the overall direction of the Group’s compliance activities.

has introduced quality training to promote an understand-To promote and supervise compliance activities, Sysmex has

ing of QMS, build individual employee awareness of theseestablished “Campanula Lines*” as points of contact for all

systems and ultimately raise quality control levels. InternalGroup employees in Japan for advice or questions on any

quality audits, which are conducted by a committee of internal

compliance issues. The Campanula Lines are designed to

product quality auditors selected by each department, provide

eliminate any concerns held by the staff member seeking

periodic checks on the operational status of the QMS.

advice, for example by providing contacts with male or female
managers or external legal consultants.

We disclose information in accordance with the timely
disclosure regulations that stock exchanges have establishedFor product exports, Sysmex has established a Security

for this purpose. Managerial divisions create documents on

Export Control Committee to ensure the Company’s tech-decisions that have been made,*1 issues that have arisen,*2

nologies and products are not used illegally overseas. The

and earnings reports, as well as liaising with the communica-

Committee conducts ongoing and indepth investigations

tions divisions responsible for disseminating this information

to confirm export destinations or product usage. In 2008,

externally. Information on Company decisions and earnings

the Kobe Customs Office approved Sysmex as a Designatedreports is disseminated quickly after deliberation by the

Exporter under the Designated Export Declaration System.

Steering Committee or following decisions by the Board ofThis system is designed to speed up administrative pro-

Directors or the president. Any issues that arise are reported

cedures for products distribution in line with tighter security

to the president, following deliberation by the Steering

procedures and greater international distribution of products.

Committee, before being promptly disclosed publicly.

Only exporters with an excellent compliance record are ap-

Sysmex will reinforce its risk and quality management

proved as Designated Exporters. Sysmex markets its products

procedures to ensure the ongoing trust of a wide range ofaround the world and now aims to improve its service bystakeholders.

using the Designated Export Declaration System to achieve
greater administrative efficiency in export procedures.
The ultimate goal in the Company’s pursuit of complianceis for every Sysmex employee to be aware of compliance as
an ongoing factor and to be able to apply this understanding in their work. Sysmex will continue to ensure thoroughSysmex Annual Report 2009

*1 : Decisions that have been made include decisions on mergers or
stock swaps as stipulated in the Rules on Timely Disclosure of
Corporate Information from the Tokyo Stock Exchange.
*2 : Issues that have arisen include changes in major shareholders or
lawsuit filings as stipulated in the Rules on Timely Disclosure of
Corporate Information from the Tokyo Stock Exchange.

Executive Officers

47

From left: Takashi Goda, Michiaki Ishida, Katsuo Uhara, Takuji Nishino, Masami Kitagawa, Yukio Hamaguchi, Kaoru Asano

Takuji Nishino

Yukio Hamaguchi

Executive Officer
Executive Vice President of Intellectual Property

Executive Officer
Executive Vice President of Diagnostic Reagent Development

Katsuo Uhara

Takashi Goda

Executive Officer
Executive Vice President of SCM

Executive Officer
Executive Vice President of Sales & Marketing East/Japan

Masami Kitagawa

Kaoru Asano

Executive Officer
Executive Vice President of Business Management (Japan)

Executive Officer
Executive Vice President of Central Research Laboratories

Michiaki Ishida
Executive Officer
Executive Vice President of Manufacturing Management

Sysmex Annual Report 2009

Corporate GovernanceOperating Risks

be affected if problems with product quality were to arise
nevertheless.

Overseas Sales48

To avoid this situation, Sysmex works to maintain product

Sysmex sells to overseas customers through its overseas affili-

quality in accordance with international standards, such as ISO

ates and distributors. For this reason, Sysmex hedges against

13485, and local laws and ordinances, such as the Pharmaceutical

the risk of currency fluctuations through exchange contracts

Affairs Law. Sysmex reviews on a daily basis product informationand other means. Nevertheless, the Company’s operatingfrom Japanese and overseas markets, as well as from within

results and financial position are affected by foreign exchange

the Company; collates technical information that may improvefluctuations. The proportion of consolidated net sales contrib-

design quality; and implements rigorous quality checks at theuted by overseas sales is rising each year, from 62.5% in fiscal

start of mass production and prior to product launch.

2007 to 67.5% in fiscal 2008 and 68.0% in fiscal 2009.
As of the start of fiscal 2010, the Company assumes forex
rates of US$1.00 = ¥95 and €1.00 = ¥125.

Stable Product Supply
Sysmex markets its products to customers in more than150 countries and has internal systems in place to ensure

The Impact of Healthcare System Reformthe stable supply of these products to customers. The raw

Against a backdrop of a sharp decline in the birthrate andmaterials used in these products are sourced from about

rapid aging of the Japanese population, advances in medical

300 Japanese companies and 50 overseas companies. The

technology, increased demand from patients for a better

Company might experience difficulties with procurement if,

quality of life (QOL), and other changes in the healthcare

for example, business operations were suspended at suppliers

environment, Japanese healthcare system reform continues.

or the supply of raw materials was interrupted. The stable

Such reforms are designed to optimize healthcare costs andsupply of products could also become problematic if Sysmex

efficiently providing high-quality healthcare services. The

products were affected by environmental regulations.

Company’s mainstay diagnostics business could be indirectly
affected* by such healthcare system reforms.
Amid ongoing healthcare cost optimization measures and

For these reasons, Sysmex is improving communication
with suppliers, sharing information with suppliers and affiliates, and building a global supply network for reagents. The

demands for greater efficiency in hospital management, more

Company endeavors to respond to environmental regulations

advanced medical care and new clinical testing procedures,that may affect products by initiating full-time projects to

Sysmex will boost its investment in the life science field,

make products compliant and by responding to the demands

including definitive diagnostic tests for cancer, and strive toof each regulation in order of priority.

meticulously respond to diversifying needs by providing totalsolutions that combine instruments and reagents, information
technology and after-sales support.
* The Japanese medical fee system is amended every other year.
Compared with the most recent amendment, in fiscal 2009, fees covering diagnostic tests should be almost unchanged overall comparedwith previous years, so Sysmex expects a negligible impact on earnings
compared to the previous year. Diagnostic tests are covered by a fee
for the provision of the test, unlike the fixed reimbursement prices
set for pharmaceuticals. Therefore, any changes made to test fees byamendments to the medical fee system should not have a direct effecton Company earnings.

Measures to Counter Risks Associated with theUse of Information Systems
Sysmex employs information technology in its decision-making procedures, such as transmitting information, supporting
core businesses and completing approval documents via the
Company’s internal network.
The Company has therefore introduced countermeasures
to minimize the potential operational impacts of network or
information system disruption, computer viruses or unauthorized external access to information systems. Sysmex has inplace secondary, alternate network routes; implements daily

Product Quality

system administration procedures; runs security measures

The instruments and reagents that Sysmex supplies must be

including virus gateways; and works to reinforce its internal

extremely reliable, so the Company has introduced a compre-

controls, for example by controlling access through strict user

hensive quality management system. However, earnings could

management procedures and fingerprint authorization.

Sysmex Annual Report 2009

Sysmex Value

Sysmex has marked the 40th anniversary of the Company’s founding inKobe. Currently, Sysmex has commenced the transformation of moving to
a new stage in order to fulfill its social responsibilities as a company that
contributes to bringing about a comfortable and healthy society.

Sysmex Annual Report 200949

Sysmex Value

Creating New Value
In 2008, Sysmex celebrated the 40th anniversary of its founding. We created a new corporate logo tocommemorate this date and make a definitive statement about our fervent desire to move to the nextstage of healthcare.

50

Although Sysmex got its start as specialized manufacturerof the Company’s continued existence. “Value” elucidates

in the field of hematology, the Company has since

the principles that we consider important and defines our

extended its operations into a broad range of fields spanning

management stance, while “mind” expresses the attitudes that

hemostasis, immunochemistry, urinalysis and clinical chem-

we expect every member of the Sysmex Group to uphold.

istry. We are also expanding our business in the life sciences,

In addition to putting the Sysmex Way into practical appli-

which we perceive to be a driver of future growth. The

cation, in October 2008 we unveiled a completely redesigned

environment in which we operate has changed substantially incorporate logo to symbolize the many ways in which theline with these shifts, and our stakeholders have become more

Company is evolving toward a new stage in its development.

global. Accordingly, their needs and our responsibilities have

Our new logo embodies our dedication to remaining at thegrown more sophisticated and diverse.

leading edge of healthcare, the assurance that we will work

To keep pace with these developments, we recognized thetoward ever higher levels of health and peace of mind, andneed to redefine a basic management policy that had served

a firm commitment to innovation in testing and diagnostics

us well since the Company’s foundation. Our groupwide

technology. Owing to its frontrunner status, Sysmex fosters a

corporate philosophy, the “Sysmex Way,” went into effect inhost of knowledge and creates new technologies. We also aim

April 2007. The Sysmex Way comprises three parts: mission,

to contribute to society by raising patient quality of life (QOL)

value and mind. “Mission” outlines the significance to society

and bringing peace of mind to people throughout the world.

Kobe is well-known as a port city surroundedby nature, especially the sea and mountains.

About Our Logo
The mark combines two contrasting elements symbolizes
the fusion and sublimation of two contrasting ideas. The
shape reminds us of the infinity symbol “∞” and illustrates
the unlimited possibilities of Sysmex. The ocean andmountain design evokes the evolution of life as well as thelandscape of Kobe, the birthplace of Sysmex.

Sysmex Annual Report 2009

The Sysmex Group is conducting a number of activities to entrench its new corporate philosophy, theSysmex Way. Through “VQ Sessions,” we conduct activities designed to make the Company attractive
to various stakeholders. As one aspect of these activities, we work to promote communications on a
global level to unleash Sysmex’s new potential.

In striving to make the Company attractive to a variety ofthen each person proposed a theme involving something they hoped

stakeholders, we believe it is important for each employee toto achieve. We shared these themes worldwide via the Web, sparking

understand the ideas behind our corporate philosophy, consider

spirited debates with other employees and developing even better

these concepts carefully in light of their everyday activities andideas in the process. Next, we segmented the ideas into regions,discuss their meaning, as they steady put these ideas into practice.

including Japan, Americas, Europe, China and the Asia-Pacific, andSysmex considers fiscal 2009 to have been a turning point in theencouraged further debate through face-to-face meetings andcreation of corporate value, and we aim to make a qualitative shift.

videoconferences. Following these several months of debate, ideas

One program that we introduced to encourage communica-

were sorted by area into representative themes for presentation totions on a global level and introduce activities that would create

the Company’s management in Japan in October 2008, as well as by

new value for stakeholders was the “VQ Session.” A VQ Session

employee discussion sessions accompanied by explanatory posters.

involves all employees Groupwide. True to the meaning behind

Selected themes that are not field-specific, such as environ-the acronym—a quest for value—a VQ Session provides themental preservation and social contribution, are currently at theframework for employees to consider and debate actions that can

implementation stage, with various activities taking place bothbe taken to make Sysmex attractive to stakeholders, and then towithin and outside the Company. We plan to continue holding

put theory into practice.

the VQ Session, as we have seen that it does encourage com-

The VQ session held in fiscal 2009 was attended by approxi-

munications on a global level. For a knowledge-centric enterprise

mately 4,000 employees from throughout the Group. Participants

such as Sysmex, we hope that such sessions will foster develop-

considered seriously a broad range of themes, from everyday

ment and progress along the way to raising corporate value for

operations to new business. Employees introduced ideas, andour wide range of stakeholders.

VQ Session
VQ, short for “value quest,” epitomizes our search
for Sysmex-appropriate value that will put theSysmex Way into action and launch us toward ournext stage of operations.

Sysmex Annual Report 200951

Sysmex Value

Socially Responsible Activities
We are committed to activities that ensure our attractiveness to stakeholders. As a healthcare
specialist, we aim for a healthy and prosperous society.

52W

e believe that our corporate responsibility involves de-an even greater range of personalities. Sysmex believes thatlivering products that are consistent with the Sysmex

diversity and globalization go hand in hand and that manage-brand and conducting business activities that contribute to ament’s responsibility is to nurture individual strengths andhealthy and prosperous society. To this end, Sysmex fosters

incorporate them into the overall organization. Sysmex willa corporate culture where each employee can feel a sense ofcontinue to cultivate a corporate culture where employees are

fulfillment in their work and emphasizes excellent communica-

fulfilled in their work, based on a sense of mutual agreement

tions with all stakeholders as it conducts its corporate activities.

and common understanding among all Group employees.

We have launched initiatives to raise employee value, con-

As part of its efforts to develop a positive working

tribute to society, conserve the environment, protect intellectual

environment, Sysmex introduced flex-time systems to enableproperty and enhance investor relations. In the fiscal year ended

employees to adjust their work hours for childcare and long-

March 31, 2009, we also began holding “VQ Sessions,” whichterm nursing care responsibilities. In this way, the Company istake a holistic approach toward enhancing overall corporate

working to improve its systems in support of a better work-lifevalue and fulfilling our corporate social responsibility.

balance. In April 2009, we opened Sysmex Kids’ Park, aninternal childcare facility where parents can go about their

Developing Human Resources

work assured that their children are being nurtured in an
appropriate care-giving environment. In 2006, the Company

Sysmex fosters a corporate culture where employees
can feel a sense of fulfillment in their work, based on
mutual agreement and common understanding.

established a re-employment system for retirees aimed at

Sysmex believes that recruiting, retaining and developing

work at Sysmex. The objective is to provide a working environ-

human resources is among the most fundamental of manage-

ment that can utilize the expertise and experience of thesement tasks. The Company fosters a fulfilling corporate culture

employees. To raise employee skill levels, the Company alsothat draws out and maximizes the strengths of individual

runs companywide staff development programs, including

employees so that employees can make the most of theirtraining aimed at specific employee tiers and global training.

individuals who have passed retirement age but still want towork and would like to continue to be engaged in fulfilling

abilities and feel a sense of fulfillment in their work. Currently,

Through the practical application of our corporate phi-around 40% of Sysmex employees are stationed at companies

losophy the “Sysmex Way,” we strive to uphold our corporate

overseas. As it becomes more global, the Company will attract

culture by dealing in products that have characteristics in
keeping with the Sysmex brand.

Evolve as an Attractive Company
Evolve into an attractive company by developing human resources and a culture to generate high value
Human resources (enhance individual skills)

System (respect diversity, rules)

GlobalManagement

Understanding

Transparency

Autonomy

Teamwork

Equal opportunity

Training

Foster a positive corporate climate, create original value and offer trust and confidence to stakeholders

Offer job satisfaction and ideal working conditions
Sysmex Annual Report 2009

Ensure support from diverse stakeholders

Social Contributions

as a local service center, the Sysmex African Service Center
works to improve skill levels in developing countries throughSysmex is involved in healthcare, with its headquarters in Kobe but conducting operations andmaking social contributions on a global scaletechnology transfers to local technicians. The Company also

Sysmex contributes to the advancement of medical care andJapan International Cooperation Agency (JICA), which runs

supports local communities in a manner befitting a global

programs to provide technical training for researchers fromhealthcare testing company.

emerging countries.

Since 1984, Sysmex has provided assistance for researchsupports improvements in medical device maintenance andmanagement skills by providing technical assistance to the

In December 2005, the Company established the Sysmex

into electronic measuring technology through the Nakatani

Women’s Track & Field Team, welcoming Coach Nobuyuki

Foundation of Electronic Measuring Technology Advancement.

Fujita, who has trained numerous athletes representing Japan,

The foundation’s goal is to contribute to the development ofand Athens Olympic Games gold medalist Mizuki Noguchi.

Japan’s economy and society and to improve the quality of

The team supports the training of young athletes who aim tolife (QOL) of the Japanese people. The late Mr. Taro Nakatani,

become world-class competitors.

the Company’s founder and first president, established theThrough its involvement in such healthcare, local com-

Nakatani Foundation using funds contributed by himself,

munity and sporting activities, Sysmex works to raise its brandSysmex and others. The foundation has provided support forvalue by fulfilling its social responsibilities and thereby raising

258 research projects as of March 31, 2009.

overall corporate value.

Sysmex provides funds to the Kobe University School of
Medicine for an endowed course in laboratory medicine. The

Environmental Conservation

purpose of the course is to contribute to the advancement ofalso participates in the Kobe Medical Industry Development

Activities to fulfill social responsibilities forenvironmental conservation and act in harmony
with the global environment

Project, which is promoted by the city of Kobe. These funds

Sysmex considers its social responsibility toward environ-

were used to open the Sysmex Asano Laboratory in January

mental conservation a management priority. In line with the2007. Under the direction of Professor Shigetaka Asano, aSysmex environmental policy, Sysmex aims to protect theleading hematology expert, the laboratory aims to create newenvironment in the course of product development, produc-

diagnostic technologies for effective cell therapy.

tion and customer support and conducts a variety of otherdiagnosis and medical care by developing evaluation methods
for new clinical testing in advanced medical fields. Sysmex

Valuing its interaction with local communities, Sysmex

activities at its operating sites to reduce its environmental

has opened its Kakogawa Factory, an instrument manufactur-

impact and achieve harmony with the global environment.

ing facility, for a local junior high school internship course.

In 2006, Sysmex reviewed its environmental management

Participating since 1998 in this junior high school work-study

system and improved its systems to drive such activities

program called “Try-Yaru Week,” Sysmex supports a weeklong

forward. Sysmex has also acquired certification under the

student internship program each year in early June.

international ISO 14001 standard for environmental manage-

Sysmex looks to make global contributions to healthcare.

ment systems at 11 principal business sites in Japan andDuring the year, we contributed diagnostic instrument and re-overseas. In addition, the Company is formulating a group-

agents to aid victims of the 2008 Sichuan earthquake in China

wide system to promote environmental activities, including

and cyclones in Myanmar. The Company has opened thean annual environmental audit. The Company has put in place

Sysmex African Service Center in Cotonou, Benin, as a techni-green procurement standards and works with suppliers to

cal support base covering Western Africa. As well as acting

promote the sourcing of raw materials in ways that have a low
Sysmex Annual Report 200953

Sysmex Value

54

environmental impact. Following the implementation of theThrough conservation efforts that seek to achieve harmony

RoHS directive (which restricts the use of certain hazardous

with the global environment, Sysmex endeavors to meet its

substances in electrical and electronic instruments) by thesocial responsibilities toward environmental conservation,

European Union in 2006, Sysmex is successively ensuring

raise its brand value and enhance overall corporate value.

that its parts and components covered by the directive comeinto compliance ahead of the application of the directive to
medical devices scheduled for 2012. The Company is running

Recycle Ratio (Three-Factory* Total)
Waste

(t)
300

(%)
100
98.5

training programs for personnel responsible for productdevelopment and procurement to ensure the rigorous

Recycle ratio

298.3

91.4

240

80

implementation of procedures to meet the RoHS directive
requirements. Sysmex has also established in-house standards
on environmentally hazardous substances for product design
and is using these standards in decisions on the inclusion of
RoHS-compliant parts.

71.4
180

169.3
120

60

60.5
122.1

60

and size of hematology analyzers resulted in greater energy

20

36.7

Sysmex is working to make products more energy efficient. In the past, the drive to increase the functionality

40

40.8

0

6.0
2005

2006

2007

2008

2009

0

* Kakogawa, Seishin and Ono factories

consumption, but the Company now focuses on energy-saving
designs in its product development to make its products theIntellectual Property Activities

industry’s most energy-efficient. Moreover, to reduce resourceof foamed plastic and timber packaging materials, switching

Creating an environment that encourages intellectual creativity and ensuring a competitiveedge to support stable growthinstead to materials that can be recycled.

In line with its expanding business domains and global

usage the Company is working to make its products morecompact and lightweight, and in 2006 we eliminated the use

October 2008 marked the grand opening of Technopark,development, Sysmex has established the Basic Principles

our new R&D facility that is designed to fit in with theof Intellectual Property Activities. The Company’s goals inenvironment and the surrounding community. In addition

creating these principles were to share among all employees

to eco-friendly materials and an energy-saving design,

key thoughts on intellectual property activities and maximize

the greenery, lakes and other natural spaces that makeGroup strengths. The Company’s policy on specific intellectual

up more than half its surrounds add to its harmony withproperty activities is to liaise with R&D divisions, formulate

neighboring areas. Such environmental considerations haveearned Technopark the highest level for the environmental
performance of buildings under a Japanese standard named
CASBEE, for the Comprehensive Assessment System for Built
Environment Efficiency. To eliminate waste and use resources

Sysmex’s Views on Intellectual Property Activities
Basic Principles
Sysmex’s intellectual property activities aim to secure flexibility in
R&D and business development and contribute to the management ofSysmex’s business.

effectively, Sysmex has launched zero-emissions initiatives at

Basic Policy

its factories and promotes waste separation and recycling. The

Sysmex ensures its global competitive advantage and sustains stable
growth by maintaining an environment that supports intellectual creationby employees, by actively securing and utilizing rights to valuable intellectual property generated through the activities of all Group companies,
and by properly respecting the intellectual property rights of third parties.

Company’s offices in Japan have adopted the Ministry of theEnvironment’s “Cool-Biz” proposal, a program to reduce CO2
emissions by maintaining appropriate office temperatures.

Sysmex Annual Report 2009

filing strategies, uncover latent intellectual property opportuni-

areas such as the life sciences and hosts tours to research andties and survey the intellectual property rights of third parties.

manufacturing facilities. Overseas, the department holds inves-

Through proactive intellectual property education activities

tor relations meetings, attends conferences held by securities

as well as an expanded intellectual property liaison function

firms and seeks opportunities to foster an understanding(which supports everything from idea generation to intellec-of the Company’s strengths by providing individual producttual property management and use), Sysmex seeks to quickly

explanations at industry exhibitions or tours of local factories.

convert R&D successes into valuable intellectual property.

For individual investors and other shareholders, the depart-

The Company has in place a remuneration system thatment prepares corporate brochures and shareholder reports, as

includes bonuses based on patent performance. This system iswell as extensive web content, all with the aim of introducing

targeted at patents that contribute to Sysmex’s business andthe Company’s business in an easily understandable way.

is designed to incentivize inventors.

The Company has earned the Japan Investor Relations

As an R&D-driven company, Sysmex will continue to

Association’s Award for Excellence in Corporate IR. Sysmex

support the knowledge-building activities of its employees,

has also received the Award for Excellence in Internet Investor

expand its management of intellectual property and sustain

Relations, sponsored by Daiwa Investor Relations, and theits position in global competition.

Company’s website was designated as an Excellent Corporate
Website according to the survey ranking listed company

Investor Relations Activities

websites run by Nikko Investor Relations.
To raise the level of the Company’s investor relations

We strive to sustain growth and increase corporate value. Our investor relations activities aim
to proactively disclose information to enhance
management soundness and transparency,
communicate our corporate directions to shareholders and promote a management style that isboth steady and innovative.
Sysmex recognizes investor relations as an important facet of

activities further, in addition to proactive external information
disclosure Sysmex will concentrate on responding to feedback
to ensure the results of its investor relations activities arereflected in its capital policies and management.

Position of Sysmex IR Activities
Externally• Raise corporate value(which equals market
capitalization)

A management strategy tool for reinforcing themanagement base by ensuring appropriate shareprice formation

corporate management and is active in its investor relations
efforts, in line with its investor relations policy. The investor

Determine capital market
responses and requests

relations department is located within the corporate businessplanning division, which reports directly to the president. The
department is charged with disclosing appropriate information
in a timely manner, communicating directly with shareholders and other investors, and promptly providing feedback to
management regarding the Company’s external assessment.

Disseminate quality
information in atimely manner

Swiftly reflect
management andIR activities

One focus of the Company’s communications withshareholders and other investors is to explain a complex
business in a straightforward manner. In addition to briefing
analysts and institutional investors about operating results, theinvestor relations department provides technical briefings on• Sustainable growth andprofitability improvements• Appropriate investment
for future growthInternally
A management innovation tool that works byfeeding back external evaluations and requests

Sysmex Annual Report 200955

Sysmex Value

Brief History of the Company=Management =R&D =Production =Marketing

56

Successfully developed and commercialized Automated Hematology
Analyzer “CC-1001” the first blood cellcounter in Japan.
=Feb. 1968 Toa Electric founded Toa Medical
Electronics as the affiliate for sales of
its medical electronics devices andinstrument.
=May 1973 Established the Kakogawa Factory inJapan.
=Oct. 1975 Launch of the first fully AutomatedHematology Analyzer developed inJapan.
=Feb. 1978 Launch of the Sysmex brand to markthe 10th anniversary of founding.
=May 1978 Started hematology seminar in Japan.
(now held 31 times)=Oct. 1979 Established a US affiliate, now Sysmex
America.
=Oct. 1980 Established a European affiliate
Sysmex Europe.
=Oct. 1984 Launch of the automated coagulation analyzer marks entry into thehemostasis segment.
=Mar. 1987 Launch of the immunochemistry
analyzer, which utilized an original
immunoassay method, marks entry
into the immunochemistry segment.
=Aug. 1990 Launch of an integrated hematology
system that fully automated theentire process from the counting ofblood cells through preparation ofsmear samples.
=Feb. 1991 Opened the Ono Factory in Japanand transferred the reagent production division.
=May 1991 Established the UK affiliate, now
Sysmex UK.
=Jul. 1993 Completed the Neumünster Factory,
the base for reagent production in
Europe.
=Mar. 1995 Signed an agreement with Dade
International a US based company(now Siemens) for collaboration inselling coagulation product lines.
=Jun. 1995 Established a joint venture, now Jinan
Sysmex Medical Electronics in China.
=Nov. 1995 Listed stocks on the 2nd Section of
the Osaka Securities Exchange.
=Nov. 1995 Launch of the world’s first analyzer
of tangible constituents of urine thatfully automated inspections of urinary
sediments.
=Jul. 1996 Listed stocks on the 2nd Section of
the Tokyo Stock Exchange.
=Oct. 1996 Mr. Hisashi Ietsugu becomespresident.
=Feb. 1998 Established a Singaporean affiliate
now Sysmex Asia Pacific.
=May 1998 Signed a basic agreement with
F. Hoffmann-La Roche of Switzerland
for global collaboration in marketingand joint R&D.
=1963

Sysmex Annual Report 2009

=Oct. 1998 Change of company name toSysmex Corporation to mark the 30th
anniversary of founding.
=Feb. 1999 Launch of the automated hematology analyzer developed for the 21st
century.
=Jan. 2000 Founded a Shanghai affiliate Sysmex
Shanghai.
=Mar. 2000 Promoted to the 1st Section of theTokyo Stock Exchange and the Osaka
Securities Exchange.
=Mar. 2000 Opened Central ResearchLaboratories in the Techno Center.
=Apr. 2002 Consolidated Sysmex International
Reagents as a wholly owned affiliate
through a share exchange.
=Apr. 2003 Sysmex and Toshiba announce
development of minimal-invasive
blood glucose self-measurement
technology that does not require
blood sampling.
=Jun. 2003 Consolidation of two local affiliates in
the US to establish Sysmex America.
Rebuilding of the sales and support
structure in the US.
=Jan. 2004 Release for research purposes of the
GD-100, an instrument incorporating
the independently developed OSNA
method that detects cancer lymph
node metastasis in a short time.
=Jan. 2004 Development of the world’s firstmulti-protein analysis chip capableof simultaneous measurement ofactivities and amounts of up to 20
proteins.
=Apr. 2004 Acquired 50.8% of the shares in CNA,
a medical data systems enterprise,and consolidated as an affiliate.
=Jun. 2004 Established the R&D bases at
the Business Support Center for
Biomedical Research Activities (BMA)
on Port Island Second Stage, off shore
from Kobe.
=Dec. 2004 Receipt of the Japan Investor
Relations Association’s IR Award for
Excellence for 2004.
=Jan. 2005 Sysmex develops technology todiagnose the risk of post-operative
recurrence of early-stage cancer.
=Apr. 2005 Introduction of the executive officer
system as a means of strengthening
corporate governance.
=May 2005 Establishment of the Solution Centerin Nishi-ku, Kobe and concentrationof the marketing planning, customer support and scientific support
functions.
=Nov. 2005 A stock split.
=Jan. 2006 Released the XS Series, the world’s
smallest automated hematology
analyzers, which require only minutequantities of blood.

=Apr. 2006 Introduction in Europe of the RD-100i
gene amplification detector for
detecting breast cancer lymph-nodemetastasis.
=Nov. 2006 The Japan Investor Relations
Association awards the Fiscal 2006 IR
Excellence Company Prize to Sysmex.
=Apr. 2007 Established a Group Corporate
Philosophy, the “Sysmex Way.”=Apr. 2007 Announced preparations forestablishing a business presence inAustria, Slovakia, Hungary and theCzech Republic.
=Jun. 2007 Formed a global partnership with
bioMérieux for urinary screening in
microbiology.
=Oct. 2007 Established the US affiliate Sysmex
Canada.
=Dec. 2007 Started supplying hematology
analyzers to animal test laboratories
operated by animal diagnostics major
Idexx Laboratories.
=Jan. 2008 Formed a commercial joint venturewith bioMérieux for the Japanese invitro diagnostics market.
=Apr. 2008 Started direct sales and support
services in France.
=Apr. 2008 Awarded MAFF manufacturing andmarketing approval for a rapid andeasy test kit to detect influenza
infection in chickens.
=Jun. 2008 Adoption of Sysmex products asstandard instruments by the
Mongolian Ministry of Health.
=Jun. 2008 Acquisition of approval from the
MHLW for manufacture and sale ofgene amplification reagent as an invitro diagnostic pharmaceutical.
=Jun. 2008 Established the Dubai’s subsidiary
Sysmex Middle East FZ-LLC.
=Oct. 2008 Renewed the new corporate logo on
the occasion of the 40th anniversaryof the company’s establishment.
=Oct. 2008 Established Technopark, Sysmex core
R&D base; Double the size of previous
Techno Center facilities.
=Nov. 2008 First insurance coverage in Japan for
the Sysmex system for rapid detection of breast cancer lymph nodemetastasis.
=Dec. 2008 The Indian joint venture Sysmex India
Pvt. Ltd. became a wholly-owned
subsidiary.
=Feb. 2009 Launched sales of the XT-4000i, a newmodel in its XT series of hematology
analyzers.
=Apr. 2009 Established the Netherlands
subsidiary Sysmex Nederland B.V.
=Apr. 2009 Established the Belgian subsidiary
Sysmex Belgium N.V.

Financial Section

Investor Relations Policy
1. IR Goals and Basic Policy
The basic policy of Sysmex in IR activities is to disclose corporate information on performance, financial position, forecasts ofthe future and management strategies in a fair, prompt, accurate and easy-to-understand manner, to ensure accountability toshareholders and other investors and gain proper understanding about management and business activities.
2. Basis of Information Disclosure
Sysmex discloses corporate information in accordance with applicable laws and regulations concerning securities trading andthe Rules on Timely Disclosure of Corporate Information by the Issuer of Listed Securities and the Like (“Timely Disclosure
Rules”) established by the Stock Exchange. The Company also seeks to disclose corporate information not required by the Timely
Disclosure Rules fairly and promptly, to help shareholders and other investors better understand the Company.
3. Methods of Information Disclosure
Sysmex releases corporate information required under the Timely Disclosure Rules via TD-net, operated by the Tokyo Stock
Exchange. The Company posts information disclosed through TD-net on its website as promptly as possible. The Company also
provides corporate information not subject to the Timely Disclosure Rules on its website.
4. IR Quiet Period
Sysmex observes a quiet period from the day after the closing date of each quarter until the release of earnings statements.
During this period, the Company will refrain from replying to questions or commenting on earnings projections. However, in theevent that results are expected to deviate significantly from the projections during the quiet period, the Company will releaseappropriate information.

Contents
11-Year Consolidated Financial Data . . . . . . . . . . . . . . . . . . . . . . 58
Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . 60
Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Consolidated Statements of Income . . . . . . . . . . . . . . . . . . . . . . 68
Consolidated Statements of Changes in Equity . . . . . . . . . . . . 69
Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . 70
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . 71
Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Sysmex Annual Report 200957

11-Year Consolidated Financial Data

For the years ended March 31

1999

2000

2001

2002

¥ 38,337¥ 37,244¥ 38,817¥ 47,532

3,400

3,618

2,975

3,417

913

1,838

1,363

1,308

5,818

(2,562)

1,842

For the year:
Net sales
58

Operating income
Net income
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, end of year

4,083

9,901

7,338

9,181

Capital expenditure

2,140

3,018

2,098

2,455

Depreciation

2,359

2,316

2,541

2,810

R&D expenditure

2,813

3,155

3,527

4,130

Total assets

42,51349,96755,21966,502

Shareholders’ equity

31,68033,596

34,10335,577

Interest-bearing liabilities

1,328

5,810

11,02011,606

Shareholders’ equity (Yen)¥ 1,515.1¥ 1,606.8¥ 1,631.0¥ 1,701.5

Net income (basic) (Yen)

43.7

87.9

65.2

62.6

87.7

60.8

58.4

At year-end:

Per share data:

Net income (diluted) (Yen)
Cash dividends applicable to the year (Yen)

22.0

22.0

22.0

22.0

Dividends ratio (%)

50.3

25.0

33.7

35.2

Shareholders’ equity ratio (%)

74.5

67.2

61.8

53.5

Return on equity (ROE) (%)

2.9

5.6

4.0

3.8

Return on assets (ROA) (%)

2.1

4.0

2.6

2.1

Price-earnings ratio (times)

42.1

36.7

42.6

35.6

Price-book value ratio (times)

1.2

2.0

1.7

1.3

1,757

1,809

1,985

2,530

Other data:

Number of employees*Including part-time employees

Notes:
1. U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥98 = U.S. $1, the approximate rate of exchange on March 31, 2009.
2. Per share data: Certain retroactive adjustments of previously reported per share information have been made to conform with the current method from the year ended
March 31, 2003.
3. ROA = Net Income/Total Assets (Yearly Average)×100

Sysmex Annual Report 2009

(Millions of yen)(Thousands of
U.S. dollars)

2003

2004

2005

2006

2007

2008

2009

2009

¥ 57,253¥ 65,970¥ 76,935¥ 87,888¥ 101,041¥ 110,724¥ 111,843$ 1,141,255

5,299

6,615

9,104

10,724

12,71515,033

15,134

154,429

3,125

3,157

5,731

7,423

9,008

9,132

8,014

81,776

1,071

3,465

(3,261)

(499)

3,299

(3,044)(269)(2,745)

10,253

13,71810,4589,416

12,715

9,679

9,410

96,020

2,317

2,451

2,729

5,638

4,546

8,244

9,340

95,306

3,107

3,203

3,296

3,592

3,959

3,924

7,189

73,357

4,969

5,549

6,509

8,184

9,026

9,221

10,771

109,908

66,44971,983

77,66087,447

101,225

109,027

118,522

1,209,408

43,32551,09656,14962,647

71,34478,75379,183807,990

10,893

4,175

657

695

669

1,081

10,343

105,541(yen)(U.S. dollars)¥ 1,879.5¥ 2,042.7¥ 2,244.9¥ 1,251.8¥ 1,411.0¥ 1,541.0¥ 1,548.2$ 15,798.0

132.2

132.9

225.1

145.5*

179.6

178.9

156.7

1.60

121.8

123.1

224.0

143.8*

178.0

178.3

156.5

1.60

25.0

30.0

40.0

36.0*

36.0

48.0

50.0

0.51

18.9

22.6

17 .8

17.9*

20.0

26.8

31.9

65.2

71.0

72.3

71.6

70.5

72.2

66.8

7.9

6.7

10.7

12.5

13.4

12.2

10.1

4.7

4.6

7.7

9.0

9.5

8.7

7.0

15.9

20.3

27.2

35.3

23.8

20.1

20.0

1.1

1.3

2.7

4.1

3.0

2.3

2.0

2,639

2,907

3,115

3,334

3,580

3,916

4,148

Sysmex Annual Report 200959

Management’s Discussion and Analysis

60

Financial Policy

at large. To enhance its rating in upcoming years, Sysmex will

Sysmex regards increasing its market capitalization to maxi-

construct a ﬂexible and more robust ﬁnancial base, paying

mize corporate value an important management objective

attention to expanding business scale while considering theand pays careful attention to stable cash ﬂow generation. We

balance between sales and income, and assets, liabilities andconsider it important to share this goal with all stakeholders,equity. Speciﬁcally, the Company regards net sales, operating

including shareholders, customers, business partners, local

income, operating margin, return on equity (ROE) and freecommunities and employees, while sustaining medium- to

cash ﬂow (FCF) as important management indicators andlong-term growth. To that end, Sysmex has in place measures

aims to maintain a balance between scale and eﬃciency byto communicate with stakeholders on the Company’s current

ensuring the optimal combination of sales and income and of

situation and the direction it should pursue. These measuresassets, liabilities and equity.

include enhancing timely disclosure, the website, business
reports, ﬁnancial data, periodic brieﬁngs on business results,

Overview

visits to institutional investors and brieﬁngs for individual

During the ﬁscal year ended March 31, 2009, the Japanese

investors.

economy suﬀered from high prices of crude oil and otherSustaining medium- to long-term growth requires a levelraw materials in the ﬁrst half, and stagnant activity overallof R&D expenditure suﬃcient to prevail in global competition.

during the second half as the slowdown of economies aroundWe must consistently create new technologies and products

the world and rapid appreciation of the yen, both stemmingand stimulate the growth of our critical mass to absorb

from declines in demand caused by the global ﬁnancial crisis.

increases in SG&A expenses. In recent years, our sales growthAﬀected directly by this ﬁnancial turmoil, Western economies

in overseas markets has been striking. Sysmex has succeeded

went into deep recession, marked by weaker job security andin sustaining steady growth through the integration with

consumer spending. Meanwhile, having sustained high growth

Sysmex International Reagents and Sysmex CNA. Sysmex isunder the lead of China and India, activity in Asian economies

aggressively making forward-looking investments not only inalso began to decelerate in the second half, reﬂecting sluggish

the hematology and other diagnostic segments, the current

exports to their key markets in Europe and North America.

key business domain, but also in new forms of medical testingin the life science ﬁeld.

On the healthcare front, however, the negative eﬀects ofdeclining economic conditions were minimal, with demand

Sysmex pays attention not only to business scale, but

for clinical testing remaining ﬁrm on the back of aging popula-also to asset and capital eﬃciency and liability and capitaltions in Japan and other developed countries in Europe andsoundness. The Company obtains an A (single A ﬂat) issuer

North America and the expansion of preventive medicine,

rating from Rating & Investment Information, Inc. (R&I), andalong with continued investments in healthcare infrastruc-reviews and renews this rating each year. Having a high ratingtures among emerging economies.

reduces the cost of raising funds in the capital markets andUnder such circumstances, to commemorate the 40th

helps build trust among our shareholders and with the world

anniversary of its foundation the Sysmex Group unveiled a

Rating Institution

RatingRating & Investment
Information Inc.(R&I)

A

Rating Information

Sysmex website

Sysmex Annual Report 2009

Financial data (English/Japanese) Posted
in “IR Library” on the Sysmex website(As of May 31, 2009)
Rating Symbols and Definitions:Rating A; The credit quality is high. It is also
accompanied by some excellent factors.

completely redesigned corporate logo, which expresses a re-

Net Sales by Destination*

newed commitment to the spirit of challenge and innovation

Looking at net sales by destination, under the diﬃcult market

as we move on to a new stage. At the same time, we roughly

conditions in Japan, we continued to focus on providing solu-

doubled the facilities of our former R&D center to open

tions that cater to speciﬁc demands from central hospitals andTechnopark, where we will pursue the “creation of ‘knowledge’other customers. However, owing to increasingly stringent

and its inheritance.” Overseas, to reinforce our sales andcompetition, net sales dropped 0.4%, to ¥35,828 million.

support networks outside Japan we converted our Indian joint

Overseas, the situation was more positive. In theventure, which is responsible for reagent production and mar-

Americas, we are maintaining strong growth thanks to theketing there, into a wholly owned subsidiary and establishedexpansion of our direct sales and support territories in thea local aﬃliate in Dubai (United Arab Emirates) to support

United States and Canada. In the Latin American market, wesales and services. As a part of our ongoing commitment

made continued eﬀorts to expand our business by increas-

to furthering business alliances, we commenced sales anding our successful bid rate and promoting systems sales. In

customer service activities in Japan for bioMérieux (France),

Europe, we promoted the switchover to the direct sales andthe world leader in the ﬁeld of microbiology testing, and also

support system in France, and we worked to build up our sales

renewed our agreement with Siemens Healthcare Diagnostics

and service operations in the Middle East. In China and theInc. (United States), which holds the No. 1 share of the market

Asia-Paciﬁc region, we promoted development of the directfor hemostasis reagents, for the mutual supply of clinicalsales and support system and proceeded to conduct systemlaboratory hemostasis products and sales and services in oursales. Despite the negative eﬀect of yen appreciation, ourrespective territories. On the R&D front, our system for rapid

overseas sales rose 1.7%, to ¥76,015 million, due to high sales

detection of breast cancer lymph node metastasis—featuring

growth on a local currency basis. The overseas sales ratio

the ﬁrst Japanese technology of its type to automate theamounted to 68.0%, up 0.5 percentage point from the previ-

determination of cancer metastasis—received manufacturing

ous ﬁscal year.

and marketing approval from the authorities and became
covered under the Japanese health insurance program.

Breaking down overseas net sales by geographical region,
sales in the Americas were up 12.0%, to ¥23,414 million;

During the ﬁscal year ended March 31, 2009, consoli-

sales in Europe were dropped 9.6%, to ¥35,454 million; sales

dated net sales increased 1.0%, to ¥111,843 million. During thein China were up 24.4%, to ¥10,111 million; and sales in theyear, the exchange value of the yen rose ¥13.76, a substantial

Asia-Paciﬁc region were up 8.4%, to ¥7,036 million.

amount, against the U.S. dollar, to an average of ¥100.52,
compared with ¥114.28 in the preceding term. This signiﬁcantappreciation had a ¥3,027 million negative impact on net
sales. Similarly, the yen appreciated against the euro, withthe average exchange rate during the year falling ¥18.03, to* Net sales by destination is defined as the sales amount recorded byGroup companies to customers in a particular region. However, net
sales by geographical region refers to the sales amount made by aGroup company in a particular location.

¥143.50, from an average of ¥161.53 in the preceding term. Yen
appreciation against the euro had a ¥3,490 million negative
impact on net sales. Altogether, yen appreciation against
other currencies had a ¥9,669 million negative eﬀect on the
Company’s net sales during the year.
On the proﬁt front, operating income grew 0.7%, to¥15,134 million, as an increase in selling, general and adminis-

Net Sales by destination
Japan
Overseas
Americas
EuropeChina
Asia Pacific

6.3%
9.1%

trative (SG&A) expenses, which is attributable to the strengthening of the R&D structure and expansion of direct sales and

OVERSEAS

support territories, was more than oﬀset by sales growth and¥76,015 million

JAPAN

Net Sales

68.0%

32.0%

¥111,843 million¥35,828 million

cost to sales ratio reduction. As the yen’s rapid appreciation
resulted in a foreign exchange loss, however, net income fell
12.2%, to ¥8,014 million.

31.7%
7%
20.9%

Sysmex Annual Report 200961

Management’s Discussion and Analysis

62

Net Sales by Geographical Region

AmericasJapan

Now that our direct sales territories and support networks

With a continued focus on providing solutions that cater tohave expanded, we have achieved strong sales in North

speciﬁc demands from central hospitals and other customers,

America, centering on integrated health networks (IHNs) and

we recorded growth in the hematology and hemostasis ﬁelds.

other segments in the hematology ﬁeld. Meanwhile, system

With additional revenues owing to higher exports to aﬃliatedsales increased in Latin America. Despite the negative foreign

Group companies and from services for Sysmex bioMérieux

exchange situation, we recorded sales of ¥23,368 million, up

Co., Ltd., we recorded sales of ¥37,589 million, up 0.1% from

12.1%.
Operating income grew 80.5%, to ¥1,789 million, as sales

the previous ﬁscal year.

growth resulting from an expanded sales of business andOperating income fell 40.6%, to ¥4,672 million, as sales
growth was negatively oﬀset by the decrease in gross proﬁt

higher proﬁtability, stemming from slower growth in the ﬁxed

from the inter-group export sales due to foreign exchange

cost ratio, more than oﬀset the increase in SG&A expenses.

translation eﬀects, as well as to an increase in SG&A
expenses, which is attributable to the rise in research andEuropedevelopment expenses associated with the construction of

In France, sales grew as a result of a switch to the direct sales

Technopark.

and support system, and we also experienced sales growth in

Net Sales by Geographical Region
Japan
Americas
EuropeChina
Asia Pacific

Sales and Operating Income
by Geographical Region

Sales and Operating Income
by Geographical Region

Interarea Transfer: Exports to Group affiliates
Sales to Customers: Including Korea, Taiwan and Mongolia
Operating IncomeJapan(¥ million)
80,000

4.8
.8%

9.1%

64,928 66,880

64,00059,382
7,432

53,47233.6%
33

10,000(¥ million)
25,0008,000

20,0006,000

15,000¥111,843 million

23,3687,870

29,32725,532

20,845

2,000

1,789

1,600

19,15815,6205,650
22,622
18,942
4,672
39,396 37,533
36,76032,0004,000
34,53037,589Net Sales

Net Sales
Operating Income

69,09031,501

6,484

48,000Americas

1,200

13,580991

800

10,000593

16,000

31.6
.6%

2,000

400

5,000
215

200

20.9%

0

2005

2006

2007

2008

2009

0

0

2005

2006

2007

2008

2009

Sales and Operating Income
by Geographical Region

Sales and Operating Income
by Geographical Region

Sales and Operating Income
by Geographical Region

EuropeChina

Asia Pacific

Net Sales
Operating Income
39,175
10,000(¥ million)
40,000Net Sales
Operating Income(¥ million)
12,5001,500

35,38731,58532,000

1,200

6,000

21,200

7,500

3,735

900

647

600

3,600

6,404
4,621

4,000

781

5,000

3,547
3,014

2006

2,000

2007

2008

824

4,823

600

612

2009

0

400

2,400
360

300

2,500

0

2005

547

2,802

495

2,295

2005

800
4,054

6,848

5,135

0

5,024

4,800

8,127

16,000

8,000

1000
5,388

1,309

10,00025,36924,000Net Sales
Operating Income(¥ million)
6,000

10,111

8,000

0

2006

2007

2008

2009

0

1,200

0

333

252

2005

200

2006

2007

2008

2009

(Excluding Korea, Taiwan and Mongolia)

Sysmex Annual Report 20090

the Middle East and Africa. By product segment, hematology

Profits and Losses

and urinalysis sales fared well. However, owing to a change

Net Salesin the method of accounting for lease transactions and to the

During the year, sales in Japan fell slightly as a result of

foreign exchange loss, sales fell 9.7%, to ¥35,387 million.

increasingly stringent competition. However, consolidated net

Operating income was up 11.1%, to ¥5,135 million, as costsales were up 1.0% overall, to ¥111,843 million, buoyed by such

reduction eﬀorts softened the negative impact of higher

factors as higher sales in the U.S. hematology market andSG&A expenses.

sales for instrument upgrades in China.

China

Cost of Sales and SG&A Expenses

Instrument sales advanced signiﬁcantly in the hematology,

Cost of sales dropped 10.0%, to ¥40,838 million, causing thehemostasis, and urinalysis businesses. Sales of reagents also

cost of sales ratio to fall to 36.5%, an improvement of 4.5

maintained their momentum as our eﬀorts over the course ofpercentage points.

63

several years to increase installations of high-end instrument

SG&A expenses grew 11.1%, to ¥55,871 million, owing tomodels in the hematology paid oﬀ. In addition, the melaminesuch activities as reinforcing our R&D structure, strengthening

contamination issue pushed up sales in the urinalysis ﬁeld.

sales in the Americas and designing a new corporate logo in

As a result, we recorded a 24.4% increase in sales, to ¥10,111

commemoration of the 40th year of the Company’s found-million. Operating income was ¥1,309 million, up 58.9% froming. Accordingly, the ratio of SG&A expenses to net sales

the previous ﬁscal year, with sales growth positively oﬀsetting

increased 4.6 percentage points, to 50.0%.

the rise in SG&A expenses.

R&D Expenditure
Asia-Paciﬁc

R&D expenditure grew ¥1,550 million year on year, to ¥10,771

With the hematology, hemostasis and urinalysis businesses all

million, rising to 9.6% of net sales, compared with 8.3% in the

faring well, we recorded 7.2% higher sales, to ¥5,388 million.

preceding term. Factors behind this increase included costs

Large-scale orders for system products and other lines into construct Technopark, our new R&D facility, and expenses

Australia, as well as growing sales in India, contributed to therelated to the development of new products to enhance ourrise in regional sales. Operating income was up 18.3%, to ¥647

product portfolio. We also aggressively promoted R&D in the

million, stemming from the increase in sales.

life science ﬁeld, which we consider a driver of future growth.

Net Sales

SG&A Expenses
SG&A Ratio(¥ million)
125,000(¥ million)
60,000

SG&A Expenses
SG&A Ratio
55,871

100

110,724 111,843
50,294

101,041

100,000

48,00087,88840,42576,93575,00036,000 35,027

50,00024,00025,00012,000

0

2005

2006

80

44,828

2007

2008

2009

0

60

45.5

46.0

44.4

45.4

50.0

40

20

2005

2006

2007

2008

2009

0

Sysmex Annual Report 2009

Management’s Discussion and Analysis

64

Incomeratio for the year under review was 31.9%, up for the seventh

The eﬀect of higher sales and an improved cost of sales ratio

consecutive ﬁscal year.

more than compensated for the increase in SG&A expenses.

Going forward, Sysmex will continue to eﬀectively invest

Consequently, operating income expanded 0.7%, to ¥15,134

its internal reserves in the implementation of strongly com-million. However, the operating margin slipped 0.1 percentage

petitive product development and global business strategies,

point, to 13.5%.

aiming to respond to anticipated changes in the businessenvironment.

Net income fell 12.2%, to ¥8,014 million, and devaluation

We will retain this commitment to continue meeting ourof inventory assets, as well as a 112.4% surge in the foreignexchange loss, to ¥2,228 million.

shareholders’ expectation.

Dividend Policy

Liquidity and Sources of CapitalAs our earning power increases, we aim to maintain a proper

Fund Procurement and Liquidity Managementbalance between internal reserves for R&D and capital expen-

The Company raises working capital as necessary throughditure, which are designed to sustain steady high growth, andshort-term bank loans and other means. Consolidated

returns to our shareholders. In terms of returns to sharehold-subsidiaries obtain bank loans as necessary to secure working

ers, we intend to provide a stable dividend on a continuous

capital. In October 2003, the Company introduced a cash

basis and aim for a consolidated payout under our basic policy

management system (CMS) to increase eﬃciency by unifyingof sharing the successes of our operations in line with busi-

ﬁnancing and capital management at aﬃliates in Japan.
For long-term capital requirements such as capitalness performance.

investment, the Company decides the funding method

As a basic policy, Sysmex pays twice-yearly dividends onretained earnings, an interim dividend and a year-end divi-

after taking into account the investment recovery period

dend. The year-end dividend is decided upon approval of theand risk. During the year, the Company financed capitalannual shareholders’ meeting, and the interim dividend upon

expenditure and R&D activities primarily from cash provided

approval by the Board Meeting.

by operating activities.

In accordance with this policy and in light of businessperformance during the year under review, we announced

Assets, Liabilities and Equity

dividends for the year of ¥50 per share, which includes an

Total assets as of March 31, 2009, amounted to ¥118,522

interim dividend of ¥24. As a result, the consolidated payout

million, up ¥9,495 million from one year earlier, owing mainly

Cash Dividends Applicable to the Year
Dividends Ratio
Operating Income

Net Income(¥ million)
18,000(¥ million)
10,000Figures before 2006 are adjusted for a stock
split conducted on November 18, 2005
Cash Dividends Applicable to the Year
Dividends Ratio(¥ / %)
50
50
50
48*2
9,008

8,014

8,000

7,423

12,71512,000
9,000

9,132

15,033 15,134

15,00010,724

40

40
36*1

6,000 5,731

36
31.9

30

30

9,104
26.8

4,000

20

6,000
2,000

2005

2006

2007

2008

2009

0

20

20.0
17.8

3,000
0

40

17.9

10

10

2005

2006

2007

2008

2009

0

2005

2006

2007

2008

2009

0

*1: Two-for-one stock split in Nov. 2005
*2: Including special dividends of ¥8 commemorating
the 40th anniversary of the Company's founding.

Sysmex Annual Report 2009to a ¥7,531 million increase in property, plant and equipment,

Cash Flows from Operating Activities

including the new R&D center, Technopark, and recording

Net cash provided by operating activities was ¥13,194 million,of the lease assets following the convergence of accounting¥1,559 million more than during the previous ﬁscal year.

principles at overseas subsidiaries.

Depreciation and amortization provided ¥7,691 million (¥3,253

Liabilities increased ¥8,761 million, to ¥38,671 million,

million more than during previous ﬁscal year) and an increaseprimarily owing to a ¥5,604 million rise in short-term loans

in notes and accounts payable provided ¥2,376 million (com-and the recording of lease obligations following the conver-pared with ¥1,469 million in the previous ﬁscal year).

65

gence of accounting principles at overseas subsidiaries.
Total equity at the end of the year was ¥79,851 million,

Cash Flows from Investing Activities

up ¥734 million from one year earlier. Major factors included

Net cash used in investing activities amounted to ¥13,545

a ¥3,384 million increase in retained earnings and a ¥2,617

million (¥662 million more than in the previous ﬁscal year).

million decrease in foreign currency translation adjustments.

The primary reason for this increase was ¥9,393 million in

The equity ratio was 66.8%, down 5.4 percentage points.

purchases of property, plant and equipment, ¥1,128 more thanin the previous year, related to the construction of Technopark,

Capital Expenditure and Depreciation

our new R&D facility.

Capital expenditure rose 13.3% during the year, to ¥9,340
million, and depreciation increased 83.2%, to 7,189 million.

Cash Flows from Financing Activities

The principal reasons for these rises were the construction of

Net cash provided by ﬁnancing activities was ¥723 million,

Technopark, our new R&D facility, and the recording of lease

compared with ¥1,316 million used in the these activities

assets following the convergence of accounting principles atduring the previous ﬁscal year. An increase in short-term

overseas subsidiaries.

bank loans provided ¥5,871 million, ¥5,380 million more thanthese loans provided in the previous ﬁscal year. Uses ofCash Flows

cash included a ¥2,543 million payment for lease obligations

As of March 31, 2009, cash and cash equivalents stood atrecorded following the convergence of accounting principles¥9,410 million, down ¥269 million from one year earlier. Major

at overseas subsidiaries, and dividends paid required ¥2,658

cash ﬂow movements by business activity, and the factors

million, ¥626 million more than in the previous ﬁscal year.

behind those changes, are described below.

Total Assets
ROA

Total Assets
ROA(¥ million)
150,000

20

118,522

120,000

109,027
101,255

Capital Expenditure
Depreciation

Total Equity
Equity Ratio
Total Equity
Equity Ratio(¥ million / %)100,000

79,11716

80,00012

60,000 56,149

72.3

71.6
62,64787,44790,00079,851

72,396
70.5

Capital Expenditure
Depreciation(¥ million)

72.2

100

10,000

80

8,000

9,340

10,000

8,244

66.8

60

8,000
7,189

6,000

6,000

5,638

77,66060,000

9.0

9.5

4,546

8.7

7.7

8

30,000

0

2005

40

40,000

4,000

7.0

2006

2007

2008

2009

3,296
2,729

4

20,000

0

0

2005

2006

2007

2008

2009

20

2,000

0

0

3,592

3,959

3,924

4,000

2,000

2005

2006

2007

2008

2009

0

Sysmex Annual Report 2009

Consolidated Financial Statements
Consolidated Balance Sheets
Sysmex Corporation and Subsidiaries

Thousands of
U.S. Dollars (Note 1)

Millions of Yen
March 31, 2009 and 200866

ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Short-term investments (Note 3)
Receivables:
Trade notes
Trade accounts
Associated company
Other
Allowance for doubtful accounts
Investments in lease (Note 10)
Inventories (Note 4)
Deferred tax assets (Note 9)
Prepaid expenses and other current assets
Total current assets

2009

¥

9,410
153

2008

¥

9,679
87

2,960
28,957
186
183
(531)
622
18,342
4,601
2,739
67,622

3,102
29,864

PROPERTY, PLANT AND EQUIPMENT:Land
Buildings and structures
Machinery and equipment
Furniture and ﬁxtures
Lease assets
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment

7,896
25,5089,225
15,2297,570
279
65,707(29,094)
36,613

7,909
18,6707,646
15,958INVESTMENTS AND OTHER ASSETS:
Investment securities (Note 3)
Investment in associated company
Goodwill
SoftwareDeposits
Investment in real estate
Deferred tax assets (Note 9)
Other assets
Total investments and other assets
TOTAL

2,998
258
1,098
3,928
1,122
2,117
220
2,546
14,287¥ 118,522

See notes to consolidated financial statements.

Sysmex Annual Report 2009

194
(500)
18,341
4,493
1,663
66,923

4,604
54,787(25,705)
29,082

3,078
1,532
4,092
1,106
2,125
256
833
13,022¥ 109,027

2009$

96,0201,561
30,204295,480
1,898
1,867(5,418)
6,347
187,163
46,94927,949690,020

80,571
260,286
94,133
155,398
77,245
2,847
670,480(296,878)
373,60230,592
2,633
11,20440,082
11,44921,602
2,245
25,979145,786$ 1,209,408

Thousands of
U.S. Dollars (Note 1)

Millions of Yen
March 31, 2009 and 2008

LIABILITIES AND EQUITYCURRENT LIABILITIES:
Short-term bank loans (Note 5)
Current portion of long-term debt (Note 5)
Current portion of long-term lease obligations (Note 10)
Payables:Trade notes
Trade accounts
Associated company
Construction and other
Income taxes payable
Accrued expenses
Deferred tax liabilities (Note 9)
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:Long-term debt (Note 5)Long-term lease obligations (Note 10)
Liability for retirement beneﬁts (Note 6)
Guarantee deposits received
Deferred tax liabilities (Note 9)
Other long-term liabilities
Total long-term liabilities
COMMITMENTS AND CONTINGENT LIABILITIES (Notes 10 and 11)
EQUITY (Notes 7 and 13):
Common stock, 149,672,000 shares authorized, 51,243,508
shares issued in 2009 and 51,203,108 shares issued in 2008
Capital surplus
Stock acquisition rights
Retained earnings
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Treasury stock - at cost: 97,981 shares in 2009 and 95,891 shares in 2008
Total
Minority interests
Total equity
TOTAL

2009

¥

6,094
55
1,521
1,576
9,281
202
2,524
948
6,431
3
4,810
33,445

2008

¥

2009

490
56

1,302
9,942
2,888
2,062
6,169
3
3,329
26,241

14$

62,184561
15,52016,082
94,704
2,061
25,755
9,673
65,622
31
49,083
341,276

5
2,150
422
1,048
550
1,051
5,226

602
1,021
1,701
331
3,669

51
21,9394,306
10,694
5,612
10,72453,326

8,685
13,624578
59,121(45)(2,006)(196)
79,76190
79,851¥ 118,522

8,651
13,589236
55,737
351
611
(185)
78,990127
79,117¥ 109,027

88,622139,020
5,898
603,276(459)(20,469)(2,000)813,888918
814,806$ 1,209,408

Sysmex Annual Report 200967

Consolidated Financial Statements

Consolidated Statements of Income
Sysmex Corporation and Subsidiaries

Thousands of
U.S. Dollars (Note 1)

Millions of Yen
Years Ended March 31, 2009 and 2008

68

NET SALESCOST OF SALES
Gross proﬁt
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Operating income
OTHER INCOME (EXPENSES):Interest and dividend income
Interest expense
Foreign exchange loss - net
Other - net
Other income (expenses) - net
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTSINCOME TAXES (Note 9):
Current
Deferred
Total income taxes
MINORITY INTERESTS IN NET INCOME
NET INCOME

2009¥ 111,843
40,83871,00555,871
15,1342008¥ 110,724
45,39765,32750,29415,0332009$ 1,141,255
416,714724,541
570,112
154,429195(428)(2,228)(326)(2,787)
12,347226(34)(1,049)(252)(1,109)13,9241,990(4,367)(22,735)(3,327)(28,439)
125,990

4,071
234
4,305
28
8,014

5,246
(429)
4,817
(25)
9,132

41,541
2,388
43,929285
81,776¥

Years Ended March 31, 2009 and 2008

PER SHARE OF COMMON STOCK (Notes 2.v and 12):
Basic net income
Diluted net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

Sysmex Annual Report 2009¥
Yen

¥ 156.72
156.46
50.00$

U.S. Dollars¥ 178.94
178.3348.00$ 1.601.60
0.51

Consolidated Statements of Changes in Equity
Sysmex Corporation and Subsidiaries
Millions of Yen
Number of
Shares ofCommon Stock
Years Ended March 31, 2009 and 2008 Outstanding

Stock
Acquisition
RightsCommonStockCapitalSurplus¥ 8,501¥ 11,731

BALANCE, APRIL 1, 2007
50,563,379
Net income
Cash dividends,¥48.00 per share
Purchase of treasury stock(4,849)
Disposal of treasury stock
175
Issuance of new shares forstock-for-stock transaction(Note 2.c)
370,912
Exercise of warrants
177,600
Decrease in retained
earnings due to ﬁscal yearend change for subsidiary
Net change in the year
BALANCE, MARCH 31, 2008 51,107,217
Adjustment of retained
earnings due to an adoptionof PITF No. 18 (Note 2.b)
Net income
Cash dividends,¥52.00 per share
Purchase of treasury stock(3,015)
Disposal of treasury stock
925
Exercise of warrants
40,400Net change in the year
BALANCE, MARCH 31, 2009 51,145,527

Retained
Earnings¥ 48,795
9,132

Unrealized
Gain onForeign
AvailableCurrency
for-SaleTranslation
Securities Adjustments¥ 806¥ 1,675

TreasuryStock¥ (164)(2,032)34¥ 1,052

Total Equity¥ 72,396
9,132

1(2,032)
(21)
1

1,707
150

1,707
300

1,707
300

(158)
8,651

¥ 71,344
9,132

Minority
Interests(2,032)
(21)
1

(21)

150

Total

13,589¥ 236
236

55,737(455)
351(1,064)
611

(925)
127

(158)
(2,208)
79,117(1,972)
8,014(1,972)
8,014(1,972)8,014(2,658)(2,658)(13)
3
68(2,671)¥ (196) ¥ 79,761(2,658)(13)368(37) (2,708)¥ 90 ¥ 79,851

(13)
2

1
34

¥ 8,685 ¥ 13,624

(185)

(158)
(1,283)78,990342¥ 578 ¥ 59,121(396) (2,617)¥ (45) ¥ (2,006)

Thousands of U.S. Dollars (Note 1)

Years Ended March 31, 2009

BALANCE, MARCH 31, 2008
Adjustment of retained earnings due toan adoption of PITF No. 18 (Note 2.b)
Net income
Cash dividends, $0.53 per share
Purchase of treasury stock
Disposal of treasury stock
Exercise of warrants
Net change in the year
BALANCE, MARCH 31, 2009

CommonStockCapitalSurplus$ 88,275 $ 138,663

Retained
Earnings

Unrealized
Gain onForeign
AvailableCurrency
for-SaleTranslation
Securities Adjustments$ 2,408 $ 568,745$ 3,582 $ 6,235

Stock
Acquisition
Rights(20,123)
81,776(27,122)

347

10
347

$ 88,622 $ 139,020

3,490$ 5,898 $ 603,276

Treasury
Stock

Total

Minority
Interests

Total Equity$ (1,888) $ 806,020$ 1,296 $ 807,316(20,123)
81,776(27,122)
(133)
(133)
21
31
694
(4,041) (26,704)(27,255)$ (459) $ (20,469) $ (2,000) $ 813,888(20,123)
81,776(27,122)
(133)
31
694
(378) (27,633)$ 918 $ 814,806

See notes to consolidated financial statements.

Sysmex Annual Report 200969

Consolidated Financial Statements

Consolidated Statements of Cash Flows
Sysmex Corporation and Subsidiaries

Thousands of
U.S. Dollars (Note 1)

Millions of Yen
Years Ended March 31, 2009 and 2008

70

2009

2008

2009

¥ 12,347¥ 13,924$ 125,990(5,437)
7,691
15
387

(6,415)
4,438
146
174

(55,480)
78,480153
3,949(2,335)(1,701)
2,376(2,462)(1,917)
1,469(23,827)(17,357)
24,245(153)
413,194

612
1,666
11,635(1,561)
41
134,633

INVESTING ACTIVITIES:
Purchases of property, plant and equipment
Purchases of software and other assets
Purchases of investment securities
Acquisitions, net of cash acquired
Other - net
Net cash used in investing activities(9,393)(1,583)(917)(73)(1,579)(13,545)(8,265)(2,460)(994)(1,315)151(12,883)(95,847)(16,153)(9,357)(745)(16,112)(138,214)FINANCING ACTIVITIES:
Increase in short-term bank loans - net
Repayments of long-term debt
Payments of lease obligations
Exercise of warrants
Dividends paid
Other - net
Net cash provided by (used in) ﬁnancing activities

5,871
(56)
(2,543)68(2,658)
41
723

491
(66)
299
(2,032)(8)(1,316)59,908(571)(25,949)694(27,122)
418
7,378

OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Income taxes - paid
Depreciation and amortization
Write-down of marketable and investment securities
Loss on disposal of property, plant and equipment
Changes in assets and liabilities:
Increase in notes and accounts receivable
Increase in inventories
Increase in notes and accounts payable(Increase) decrease in liability for retirement beneﬁts,
net of provision
Other - net
Net cash provided by operating activities

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON
CASH AND CASH EQUIVALENTS
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
DECREASE IN CASH AND CASH EQUIVALENTS DUE TO
FISCAL YEAR-END CHANGE FOR SUBSIDIARYCASH AND CASH EQUIVALENTS, END OF YEAR

(641)
(269)
9,679

(480)
(3,044)
12,715(6,542)(2,745)98,765¥ 9,4108¥ 9,679$ 96,020

ADDITIONAL CASH FLOW INFORMATION - Interest paid

¥ 423

¥ 19

$ 4,316

See notes to consolidated financial statements.

Sysmex Annual Report 2009

Notes to Consolidated Financial Statements
Sysmex Corporation and Subsidiaries

1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL
STATEMENTS
The accompanying consolidated ﬁnancial statements have been preparedin accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Act and its related accounting regulations
and in conformity with accounting principles generally accepted in Japan(“Japanese GAAP”), which are diﬀerent in certain respects as to applicationand disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated ﬁnancial statements, certain reclassiﬁcations and rearrangements have been made to the consolidated ﬁnancial
statements issued domestically in order to present them in a form which
is more familiar to readers outside Japan.
The consolidated ﬁnancial statements are stated in Japanese yen, thecurrency of the country in which Sysmex Corporation (the “Company”) is
incorporated and operates. The translations of Japanese yen amounts into
U.S. dollar amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of ¥98 to $1, the approximate rate of exchange at March 31, 2009. Such translations should not
be construed as representations that the Japanese yen amounts could be
converted into U.S. dollars at that or any other rate.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation—The consolidated ﬁnancial statements as of March 31,
2009 and 2008 include the accounts of the Company and 37 subsidiaries(together, the “Group”).
Under the control or inﬂuence concept, those companies in which theCompany, directly or indirectly, is able to exercise control over operations
are fully consolidated, and those companies over which the Group has theability to exercise signiﬁcant inﬂuence are accounted for by the equity
method.
Investment in an associated company is accounted for by the equity
method.
Goodwill represents the excess of the cost of an acquisition overthe fair value of the net assets of the acquired subsidiary and associatedcompany at the date of acquisition, and are carried at cost less accumulated amortization, which is calculated by the straight-line method overﬁve years.
All signiﬁcant intercompany balances and transactions have been
eliminated in consolidation. All material unrealized proﬁt included in
assets resulting from transactions within the Group is eliminated.

b. Uniﬁcation of Accounting Policies Applied to Foreign
Subsidiaries for the Consolidated Financial Statements—In May
2006, the Accounting Standards Board of Japan (the “ASBJ”) issued
ASBJ Practical Issues Task Force (PITF) No. 18, “Practical Solution on
Uniﬁcation of Accounting Policies Applied to Foreign Subsidiaries for
the Consolidated Financial Statements”. PITF No. 18 prescribes: (1) the
accounting policies and procedures applied to a parent company andits subsidiaries for similar transactions and events under similar circumstances should in principle be uniﬁed for the preparation of the consolidated ﬁnancial statements, (2) ﬁnancial statements prepared by foreignsubsidiaries in accordance with either International Financial ReportingStandards or the generally accepted accounting principles in the UnitedStates of America tentatively may be used for the consolidation process,(3) however, the following items should be adjusted in the consolidation
process so that net income is accounted for in accordance with Japanese
GAAP unless they are not material: 1) amortization of goodwill; 2)scheduled amortization of actuarial gain or loss of pensions that has been
directly recorded in the equity; 3) expensing capitalized development
costs of R&D; 4) cancellation of the fair value model accounting forproperty, plant, and equipment and investment properties and incorporation of the cost model accounting; 5) recording the prior years’ eﬀects ofchanges in accounting policies in the income statement where retrospective adjustments to ﬁnancial statements have been incorporated; and 6)

exclusion of minority interests from net income, if contained. PITF No. 18
was eﬀective for ﬁscal years beginning on or after April 1, 2008 with early
adoption permitted.
The Company applied this accounting standard eﬀective April 1, 2008.
The eﬀect of this change was to decrease operating income by ¥1,362
million ($13,898 thousand) and income before income taxes and minority
interests by ¥1,087 million ($11,092 thousand). In addition, the Company
adjusted the beginning balance of retained earnings at April 1, 2008 as if
this accounting standard had been retrospectively applied.
c. Business Combination—In October 2003, the Business Accounting
Council (the “BAC”) issued a Statement of Opinion, “Accounting for Business
Combinations”, and on December 27, 2005, the ASBJ issued ASBJ Statement
No. 7, “Accounting Standard for Business Divestitures” and ASBJ GuidanceNo. 10, “Guidance for Accounting Standard for Business Combinations
and Business Divestitures”. These new accounting pronouncements wereeﬀective for ﬁscal years beginning on or after April 1, 2006.
The accounting standard for business combinations allows companies
to apply the pooling of interests method of accounting only when certain
speciﬁc criteria are met such that the business combination is essentiallyregarded as a uniting-of-interests.
For business combinations that do not meet the uniting-of-interests
criteria, the business combination is considered to be an acquisition
and the purchase method of accounting is required. This standard alsoprescribes the accounting for combinations of entities under common
control and for joint ventures.
The Company has acquired the entire shares of SYSMEX CNA Co.,
Ltd., (hereinafter SCNA) on April 1, 2007 and accounted for the acquisition by the purchase method of accounting. The Company has newly
issued 370,912 common shares to the shareholders of SCNA except for
the Company. As a result, Capital surplus of the Company was increasedby ¥1,707 million by the new issue of shares. The related goodwill issystematically amortized over 5 years.
d. Cash Equivalents—Cash equivalents are short-term investments thatare readily convertible into cash and that are exposed to insigniﬁcant riskof changes in value. Cash equivalents include time deposits, commercial
paper and mutual funds investing in bonds, all of which mature or
become due within three months of the date of acquisition.
e. Marketable and Investment Securities—Marketable and investment securities are classiﬁed and accounted for, depending on management’s intent,
as follows: i) trading securities, which are held for the purpose of earning capital gains in the near term are reported at fair value, and the related unrealized
gains and losses are included in earnings, ii) held-to-maturity debt securities,
which are expected to be held to maturity with the positive intent and ability
to hold to maturity are reported at amortized cost and iii) available-for-salesecurities, which are not classiﬁed as either of the aforementioned securities,
are reported at fair value, with unrealized gains and losses, net of applicabletaxes, reported in a separate component of equity.
Non-marketable available-for-sale securities are stated at cost
determined by the moving-average method.
For other than temporary declines in fair value, investment securities
are reduced to net realizable value by a charge to income.
f. Allowance for Doubtful Accounts—The allowance for doubtful
accounts is stated in amounts considered to be appropriate based on theGroup’s past credit loss experience and an evaluation of potential losses
in the receivables outstanding.
g. Inventories—Prior to April 1, 2008, inventories were stated at cost,
determined by the average method. In July 2006, the ASBJ issued ASBJ
Statement No. 9, “Accounting Standard for Measurement of Inventories”,
which was eﬀective for ﬁscal years beginning on or after April 1, 2008
with early adoption permitted. This standard requires that inventories
held for sale in the ordinary course of business be measured at the lowerof cost or net selling value, which is deﬁned as the selling price lessadditional estimated manufacturing costs and estimated direct selling
Sysmex Annual Report 200971

Consolidated Financial Statements

72

expenses. The replacement cost may be used in place of the net selling
value, if appropriate.
The Company applied the new accounting standard for measurementof inventories eﬀective April 1, 2008. The eﬀect of this change was todecrease income before income taxes and minority interests for the year
ended March 31, 2009 by ¥648 million ($6,612 thousand).
h. Property, Plant and Equipment—Property, plant and equipment
are stated at cost. Depreciation is computed by the straight-line method
over the estimated useful lives of the assets. The range of useful lives isfrom 31 to 50 years for buildings and structures, and from 5 to 12 years formachinery and equipment.
Equipment held for lease is depreciated by the straight-line method
over the respective lease periods.
i. Long-lived Assets—The Group reviews its long-lived assets for
impairment whenever events or changes in circumstance indicate thecarrying amount of an asset or asset group may not be recoverable. An
impairment loss would be recognized if the carrying amount of an asset
or asset group exceeds the sum of the undiscounted future cash ﬂows
expected to result from the continued use and eventual disposition of
the asset or asset group. The impairment loss would be measured as theamount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted cash ﬂows from thecontinued use and eventual disposition of the asset or the net selling
price at disposition.
j. Software—Software to be sold is amortized at the greater of either the
proportional amount to be amortized in proportion of the actual sales ofthe software to be made of the software during the current year to theestimated total sales over the estimated salable years or the amount to beamortized using a straight-line method over the estimated salable years.
The estimated salable years are principally three years.
Software for internal use is amortized by the straight-line method overthe estimated usable years. The estimated usable years are principally ﬁve
years.
k. Investment in Real Estate—Investment in real estate mainly consistsof a beneﬁcial interest in a trust. Depreciation of investment in real estateis computed according to property, plant and equipment. Accumulated
depreciation of the investment in real estate were ¥227 million ($2,316
thousand) and ¥192 million as of March 31, 2009 and 2008, respectively.
l. Liability for Retirement Beneﬁts—The Company has a non-contributory funded pension plan covering substantially all of its employees.
The liability for employees’ retirement beneﬁts is accounted for basedon projected beneﬁt obligations and plan assets at the balance sheet date.
Unfunded retirement beneﬁts for the Company and certain subsidiaries’ directors and corporate auditors are provided at the estimatedamount which would be required if such individuals retired at the balance
sheet date. However, the Company abolished its unfunded retirement
beneﬁt plan in June 24, 2005. No additional provisions have beenrecorded for retirement beneﬁts to be paid to the Company’s directors
and corporate auditors since then. The liability for director and corporate
auditor retirement beneﬁts is the amount provided in proportion to theterm that present directors and corporate auditors had been in place
before June 24, 2005.
m. Stock Option—The ASBJ Statement No. 8, “Accounting Standard
for Stock Options” and related guidance are applicable to stock options
granted on and after May 1, 2006.
This standard requires companies to recognize compensation expensefor employee stock options based on the fair value at the date of grantand over the vesting period as consideration for receiving goods or services. The standard also requires companies to account for stock options
granted to non-employees based on the fair value of either the stock
option or the goods or services received. In the balance sheet, the stock
option is presented as a stock acquisition right as a separate componentof equity until exercised.
Sysmex Annual Report 2009

The Company has applied the accounting standard for stock options
to those granted on and after May 1, 2006.
n. Presentation of Equity—On December 9, 2005, the ASBJ publisheda new accounting standard for presentation of equity. Under this accounting standard, certain items which were previously presented asliabilities or assets, as the case may be, are now presented as componentsof equity. Such items include stock acquisition rights, minority interests,
and any deferred gain or loss on derivatives accounted for under hedge
accounting. This standard was eﬀective for ﬁscal years ending on orafter May 1, 2006. The balances of such items as of March 31, 2006 werereclassiﬁed as separate components of equity as of April 1, 2006 in the
consolidated statement of changes in equity.
o. Research and Development—Research and development costs arecharged to income as incurred. Such costs were ¥10,771 million ($109,908
thousand) and ¥9,221 million for the years ended March 31, 2009 and2008, respectively.
p. Leases—In March 2007, the ASBJ issued ASBJ Statement No. 13,“Accounting Standard for Lease Transactions”, which revised the previous accounting standard for lease transactions issued in June 1993. The
revised accounting standard for lease transactions is eﬀective for ﬁscal
years beginning on or after April 1, 2008 with early adoption permitted
for ﬁscal years beginning on or after April 1, 2007.
Under the previous accounting standard, ﬁnance leases that deem totransfer ownership of the leased property to the lessee were to be capitalized. However, other ﬁnance leases were permitted to be accounted for
as operating lease transactions if certain “as if capitalized” information
is disclosed in the note to the lessee’s ﬁnancial statements. The revised
accounting standard requires that all ﬁnance lease transactions should becapitalized to recognize lease assets and lease obligations in the balance
sheet. In addition, the revised accounting standard permits leases which
existed at the transition date and do not transfer ownership of the leased
property to the lessee to be accounted for as operating lease transactions.
The Company applied the revised accounting standard eﬀective April
1, 2008. In addition, the Company accounted for leases which existed at
the transition date and do not transfer ownership of the leased property
to the lessee as operating lease transactions. The eﬀect of this change
had little impact on operating income, and income before income taxes
and minority interests.
Under the previous accounting standard, ﬁnance leases that deem totransfer ownership of the leased property to the lessee were to be treatedas sales. However, other ﬁnance leases were permitted to be accounted
for as operating lease transactions if certain “as if sold” information isdisclosed in the note to the lessor’s ﬁnancial statements. The revised
accounting standard requires that all ﬁnance leases that deem to transfer
ownership of the leased property to the lessee should be recognized
as lease receivables, and all ﬁnance leases that deem not to transfer
ownership of the leased property to the lessee should be recognized as
investments in lease.
The Company applied the revised accounting standard eﬀective April
1, 2008. The eﬀect of this change had little impact on operating income,and income before income taxes and minority interests.
q. Bonuses to Directors—Bonuses to directors are accrued at the year
end to which such bonuses are attributable.
r. Income Taxes—The provision for income taxes is computed based on
the pretax income included in the consolidated statements of income.
The asset and liability approach is used to recognize deferred tax assets
and liabilities for the expected future tax consequences of temporary
diﬀerences between the carrying amounts and the tax bases of assets andliabilities. Deferred taxes are measured by applying currently enacted tax
laws to the temporary diﬀerences.
s. Foreign Currency Transactions—All short-term and long-termmonetary receivables and payables denominated in foreign currencies
are translated into Japanese yen at the exchange rates at the balancesheet date. The foreign exchange gains and losses from translation arerecognized in the consolidated statements of income to the extent thatthey are not hedged by forward exchange contracts.
t. Foreign Currency Financial Statements—The balance sheet
accounts of the consolidated foreign subsidiaries are translated into
Japanese yen at the current exchange rate as of the balance sheet date
except for equity, which is translated at the historical rate. Diﬀerences
arising from such translation were shown as “Foreign currency translation
adjustments” in a separate component of equity.
Revenue and expense accounts of consolidated foreign subsidiaries
are translated into yen at the average exchange rate.
u. Derivatives and Hedging Activities—The Group uses foreignexchange forward contracts and interest rate swaps to manage their
exposure to ﬂuctuations in foreign exchange and interest rates. The
Group does not enter into derivatives for trading or speculative purposes.
Derivative ﬁnancial instruments and foreign currency transactions areclassiﬁed and accounted for as follows: a) all derivatives are recognized aseither assets or liabilities and measured at fair value, and gains or losses
on derivative transactions are recognized in the statements of income
and b) for derivatives used for hedging purposes, if derivatives qualify forhedge accounting because of high correlation and eﬀectiveness between
the hedging instruments and the hedged items, gains or losses on derivatives are deferred until maturity of the hedged transactions.
The interest rate swaps that qualify for hedge accounting and meet
speciﬁc matching criteria are not remeasured at market value but thediﬀerential paid or received under the swap agreements are recognized
and included in interest expense or income.
v. Per Share Information—Basic net income per share is computedby dividing net income available to common shareholders by theweighted-average number of common shares outstanding for the period,
retroactively adjusted for stock splits.
Diluted net income per share reﬂects the potential dilution that
could occur if securities were exercised or converted into common stock.
Diluted net income per share of common stock assumes full conversionof the outstanding convertible notes and bonds at the beginning of theyear (or at the time of issuance) with an applicable adjustment for related
interest expense, net of tax, and full exercise of outstanding warrants.
Cash dividends per share presented in the accompanying consolidated
statements of income are dividends applicable to the respective years
including dividends to be paid after the end of the year.

w. New Accounting Pronouncements
Business Combinations—On December 26, 2008, the ASBJ issued arevised accounting standard for business combinations, ASBJ Statement
No. 21, “Accounting Standard for Business Combinations”. Major accounting changes under the revised accounting standard are as follows;(1) The current accounting standard for business combinations allows
companies to apply the pooling of interests method of accounting
when certain speciﬁc criteria are met such that the business combination is essentially regarded as a uniting-of-interests. The revised
standard requires to account for such business combination by thepurchase method and the pooling of interests method of accounting is
no longer allowed.
(2) The current accounting standard accounts for the research and development costs to be charged to income as incurred. Under the revised
standard, an in-process research and development (IPR&D) acquiredby the business combination is capitalized as an intangible asset.
(3) The current accounting standard accounts for a bargain purchasegain (negative goodwill) to be systematically amortized within 20
years. Under the revised standard, the acquirer recognizes a bargain
purchase gain in proﬁt or loss on the acquisition date after reassessing
whether it has correctly identiﬁed all of the assets acquired and all of
the liabilities assumed with a review of such procedures used.
This standard is applicable to business combinations undertaken on orafter April 1, 2010 with early adoption permitted for ﬁscal years beginningon or after April 1, 2009.

Unification of Accounting Policies Applied to Foreign AssociatedCompanies for the Equity Method—The current accounting standard
requires to unify accounting policies within the consolidation group.
However, the current guidance allows to apply the equity method for the
ﬁnancial statements of its foreign associated company which have been
prepared in accordance with generally accepted accounting principles intheir respective jurisdictions without uniﬁcation of accounting policies.
On December 26, 2008, the ASBJ issued ASBJ Statement No. 16(Revised 2008), “Revised Accounting Standard for Equity Method of
Accounting for Investments”. The new standard requires adjustments to
be made to conform the associate’s accounting policies for similar transactions and events under similar circumstances to those of the parent
company when the associate’s ﬁnancial statements are used in applying
the equity method unless it is impractible to determine adjustments. In
addition, ﬁnancial statements prepared by foreign associated companies
in accordance with either International Financial Reporting Standards
or the generally accepted accounting principles in the United States
tentatively may be used in applying the equity method if the following
items are adjusted so that net income is accounted for in accordance withJapanese GAAP unless they are not material: 1) amortization of goodwill;
2) scheduled amortization of actuarial gain or loss of pensions that has
been directly recorded in the equity; 3) expensing capitalized development costs of R&D; 4) cancellation of the fair value model accounting forproperty, plant, and equipment and investment properties and incorporation of the cost model accounting; 5) recording the prior years’ eﬀects ofchanges in accounting policies in the income statement where retrospective adjustments to the ﬁnancial statements have been incorporated; and6) exclusion of minority interests from net income, if contained.
This standard is applicable to equity method of accounting for investments eﬀective on or after April 1, 2010 with early adoption permitted forﬁscal years beginning on or after April 1, 2009.
Asset Retirement Obligations—On March 31, 2008, the ASBJ publisheda new accounting standard for asset retirement obligations, ASBJ
Statement No. 18 “Accounting Standard for Asset Retirement Obligations”
and ASBJ Guidance No. 21 “Guidance on Accounting Standard for Asset
Retirement Obligations”. Under this accounting standard, an asset retirement obligation is deﬁned as a legal obligation imposed either by law orcontract that results from the acquisition, construction, development andthe normal operation of a tangible ﬁxed asset and is associated with theretirement of such tangible ﬁxed asset.
The asset retirement obligation is recognized as the sum of the
discounted cash ﬂows required for the future asset retirement and isrecorded in the period in which the obligation is incurred if a reasonableestimate can be made. If a reasonable estimate of the asset retirement
obligation cannot be made in the period the asset retirement obligation
is incurred, the liability should be recognized when a reasonable estimate
of asset retirement obligation can be made. Upon initial recognition ofa liability for an asset retirement obligation, an asset retirement cost is
capitalized by increasing the carrying amount of the related ﬁxed asset
by the amount of the liability. The asset retirement cost is subsequently
allocated to expense through depreciation over the remaining useful lifeof the asset. Over time, the liability is accreted to its present value eachperiod. Any subsequent revisions to the timing or the amount of theoriginal estimate of undiscounted cash ﬂows are reﬂected as an increaseor a decrease in the carrying amount of the liability and the capitalized
amount of the related asset retirement cost. This standard is eﬀective
for ﬁscal years beginning on or after April 1, 2010 with early adoption
permitted for ﬁscal years beginning on or before March 31, 2010.
Construction Contracts—Under the current Japanese GAAP, either thecompleted-contract method or the percentage-of-completion method ispermitted to account for construction contracts. In December 2007, theSysmex Annual Report 200973

Consolidated Financial Statements

74

ASBJ issued a new accounting standard for construction contracts. Under
this new accounting standard, the construction revenue and construction
costs should be recognized by the percentage-of-completion method, if
the outcome of a construction contract can be estimated reliably. When
total construction revenue, total construction costs and the stage ofcompletion of the contract at the balance sheet date can be reliably measured, the outcome of a construction contract can be estimated reliably.
If the outcome of a construction contract cannot be reliably estimated,the completed-contract method shall be applied. When it is probablethat total construction costs will exceed total construction revenue, anestimated loss on the contract should be immediately recognized byproviding for loss on construction contracts. This standard is applicable toconstruction contracts and software development contracts and eﬀective
for ﬁscal years beginning on or after April 1, 2009 with early adoption
permitted for ﬁscal years beginning on or before March 31, 2009 but after
December 27, 2007.

3. SHORT-TERM INVESTMENTS AND INVESTMENTS SECURITIESShort-term investments and investment securities as of March 31, 2009
and 2008 consisted of the following:Thousands ofMillions of Yen
U.S. Dollars
2009
2008
2009
Current:
Time deposits other than cash
equivalents
¥
48
¥ 15
$ 490
Investment trust
105
72
1,071
Total
¥ 153
¥ 87
$ 1,561
Non-current:¥ 1,831¥2,439$ 18,684
Marketable equity securities
Debt securities
500
5,102
Investment trust and other2
4
20
Unquoted equity securities
665
635
6,786
Total
¥ 2,998¥3,078$ 30,592
The carrying amounts and aggregate fair values of investment securities at March 31, 2009 and 2008 were as follows:
Millions of Yen

2009
Cost
Available-for-sale:¥ 1,896
Equity securities
Investment trust and other2
Total¥ 1,898

Cost
Available-for-sale:¥ 1,837
Equity securities
Investment trust and other4
Total¥ 1,841

Sysmex Annual Report 2009

Unrealized Unrealized
Fair Value
Gains
Losses¥ 326¥ (391)¥ 326¥ (391)¥ 1,8312¥ 1,833

Millions of Yen
2008
Unrealized Unrealized
Fair Value
Gains
Losses¥ 1,011¥ (409)¥ 1,011¥(409)¥ 2,4394¥ 2,443

Thousands of U.S. Dollars

2009
Cost
Available-for-sale:$ 19,347
Equity securities
Investment trust and other20
Total$ 19,367

Unrealized Unrealized
Fair Value
Gains
Losses$ 3,327$ 3,327$ (3,990) $ 18,684
20$ (3,990) $ 18,704

Available-for-sale securities and held-maturity securities whose fairvalue is not readily determinable as of March 31, 2009 and 2008 were as
follows:
Carrying AmountThousands ofMillions of Yen
U.S. Dollars
2009
2008
2009
Available-for-sale - Equity securities ¥ 665¥ 635$ 6,786
Held-to-maturity - Debt securities
500
5,102
Total
¥ 1,165¥ 635$ 11,888
Commercial paper was classiﬁed as cash equivalents.

4. INVENTORIESInventories at March 31, 2009 and 2008 consisted of the following:Thousands ofMillions of Yen
U.S. Dollars
2009
2008
2009
Finished products¥ 7,120 ¥ 4,971$ 72,653
Merchandise
6,211
8,033
63,377Work in process
1,253
1,489
12,786
Raw materials
3,381
3,379
34,500
Supplies
377
469
3,847
Total
¥ 18,342 ¥ 18,341$ 187,163

5. SHORT-TERM BANK LOANS AND LONG-TERM DEBT
Short-term bank loans were principally represented by bank overdrafts.
Weighted average per annum interest rates of short-term bank loans at
March 31, 2009 and 2008 were 1.1% and 5.0%, respectively.
Long-term debt at March 31, 2009 and 2008 consisted of the following:Thousands ofMillions of Yen
U.S. Dollars
2009
2008
2009
Loans from banks, due through2009, with interest ranging
from 3.5% to 9.7% for 2009
(from for 2.2% to 9.7% 2008):
¥ 60
¥ 70
$ 612
Unsecured
Total
60
70
612
Less current portion
(55)
(56)
(561)
Long-term debt, less current portion
¥ 5
¥ 14
$ 51
At March 31, 2009, annual maturities of long-term debt were as follows:
Thousands ofYear Ending March 31
Millions of Yen
U.S. Dollars
2010

¥ 55

2011

5

51

Total

¥ 60

$ 612

$ 561

6. RETIREMENT BENEFITS

7. EQUITYThe Company and its certain subsidiaries have retirement beneﬁt plansfor employees. Under most circumstances, employees terminating theiremployment are entitled to retirement beneﬁts determined based on therate of pay at the time of termination, years of service and certain otherfactors. Employees are entitled to larger payments if the termination is
involuntary, as opposed to by retirement at the mandatory retirement age
or by death.
Certain subsidiaries have unfunded lump-sum payment plans andcertain overseas subsidiaries have deﬁned contribution pension plans.
The liability for employees’ retirement beneﬁts at March 31, 2009
and 2008 consisted of the following:Thousands ofMillions of Yen
U.S. Dollars
2009
2008
2009
Projected beneﬁt obligation¥ 8,560 ¥ 8,192$ 87,347
Fair value of plan assets(5,868)(6,993)(59,878)
Prepaid pension cost4
41
Unrecognized actuarial loss
(2,471)(844)(25,214)Net liability¥ 225 ¥ 355$ 2,296

Since May 1, 2006, Japanese companies have been subject to the Companies
Act of Japan (the “Companies Act”). The signiﬁcant provisions in the Companies
Act that aﬀect ﬁnancial and accounting matters are summarized below:

The components of net periodic retirement beneﬁt costs for theyears ended March 31, 2009 and 2008 are as follows:
Thousands ofMillions of Yen
U.S. Dollars
2009
2008
2009
Service cost
¥ 1,032 ¥ 1,005$ 10,531
Interest cost
157
151
1,602
Expected return on plan assets
(207)
(265)
(2,112)
Recognized actuarial (gain) loss
47
(197)
479
Net periodic retirement beneﬁt costs ¥ 1,029¥ 694$ 10,500(a) Dividends
Under the Companies Act, companies can pay dividends at any time
during the ﬁscal year in addition to the year-end dividend upon resolution
at the shareholders meeting. For companies that meet certain criteria suchas; (1) having the Board of Directors, (2) having independent auditors, (3)having the Board of Corporate Auditors, and (4) the term of service of thedirectors is prescribed as one year rather than two years of normal term by
its articles of incorporation, the Board of Directors may declare dividends(except for dividends in kind) at any time during the ﬁscal year if thecompany has prescribed so in its articles of incorporation. However, theCompany cannot do so because it does not meet all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind(non-cash assets) to shareholders subject to a certain limitation andadditional requirements.
Semiannual interim dividends may also be paid once a year upon
resolution by the Board of Directors if the articles of incorporation of thecompany so stipulate. The Companies Act provides certain limitations
on the amounts available for dividends or the purchase of treasury stock.
The limitation is deﬁned as the amount available for distribution to theshareholders, but the amount of net assets after dividends must be
maintained at no less than ¥3 million.

(b) Increases/decreases and transfer of common stock, reserve and surplus

Assumptions used for the years ended March 31, 2009 and 2008 are
set forth as follows:
2009
2008
2.0%
2.0%
Discount rate
3.0%
3.0%
Expected rate of return on plan assets
5 years
5 years
Recognition period of actuarial gain/loss

The Companies Act requires that an amount equal to 10% of dividends
must be appropriated as a legal reserve (a component of retained
earnings) or as additional paid-in capital (a component of capital surplus)
depending on the equity account charged upon the payment of such dividends until the total of aggregate amount of legal reserve and additional
paid-in capital equals 25% of the common stock. Under the Companies
Act, the total amount of additional paid-in capital and legal reserve may
be reversed without limitation. The Companies Act also provides that
common stock, legal reserve, additional paid-in capital, other capitalsurplus and retained earnings can be transferred among the accounts
under certain conditions upon resolution of the shareholders.

In addition, the Company and certain subsidiaries participate incontributory multi-employer pension plans covering substantially all of theiremployees. Under these plans, the amount of pension assets and beneﬁt
obligation were approximately ¥7,213 million ($73,602 thousand) and ¥8,446
million ($86,184 thousand) at March 31, 2008, the most recent valuation date.
The Company also has recorded a liability for an unfunded retirement beneﬁt plan covering all of its directors and corporate auditors in theamount of ¥197 million ($2,010 thousand), and ¥247 million as of March 31,
2009 and 2008, respectively. Payment of retirement beneﬁts to directors
and corporate auditors is subject to approval at the shareholders’ meeting.

The Companies Act also provides for companies to purchase treasury stockand dispose of such treasury stock by resolution of the Board of Directors.
The amount of treasury stock purchased cannot exceed the amount available
for distribution to the shareholders which is determined by speciﬁc formula.
Under the Companies Act, stock acquisition rights are now presented
as a separate component of equity.
The Companies Act also provides that companies can purchase bothtreasury stock acquisition rights and treasury stock. Such treasury stockacquisition rights are presented as a separate component of equity or
deducted directly from stock acquisition rights.

(c) Treasury stock and treasury stock acquisition rights

8. STOCK OPTION
The stock options outstanding as of March 31, 2009 are as follows:
Stock Option

Persons Granted2004 Stock Option

11 directors
170 employees
9 directors of subsidiaries
3 employees of subsidiaries
9 directors
152 employees
18 directors of subsidiaries
42 employees of subsidiaries

2007 Stock Option

Number of
Options Granted(Shares)
1,043,400

Date of
Grant

Exercise
Price

Exercise Period

2004.7.01¥ 1,685($ 17.19)

From July 1, 2006 toJune 30, 2010

733,200

2007.7.30¥ 4,650($ 47.45)

From July 30, 2009 to
July 29, 2015

Sysmex Annual Report 200975

Consolidated Financial Statements

The stock option activity is as follows:2004 Stock
Option(Shares)Non-vested
March 31, 2007 - Outstanding
GrantedCanceled
VestedMarch 31, 2008 - Outstanding
VestedMarch 31, 2007 - Outstanding
370,600
VestedExercised(177,600)
Canceled(2,000)March 31, 2008 - Outstanding
191,000
For the year ended March 31, 200776

For the year ended March 31, 2008

2004 Stock
Option(Shares)Non-vested
March 31, 2008 - Outstanding
GrantedCanceled
VestedMarch 31, 2009 - Outstanding
VestedMarch 31, 2008 - Outstanding
VestedExercised
Canceled
March 31, 2009 - Outstanding
Exercise price(40,400)(13,000)
137,600¥ 1,685

Average stock price at exercise¥ 3,690

Fair value price at grant date2007 Stock
Option(Shares)733,200(6,000)727,200

2007 Stock
Option(Shares)
727,200(17,500)
709,700

191,000¥ 4,650¥ 98,325

The assumptions used to measure fair value of 2007 Stock Option
Estimate method:Black-Scholes option pricing model
Volatility of stock price:26.14%
Estimated remaining
ﬁve years
outstanding period:
Estimated dividend:¥ 36 per share
Interest rate with risk free:
1.403%

9. INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanesenational and local income taxes which, in the aggregate, resulted in anormal eﬀective statutory tax rate of approximately 40.6% for the years
ended March 31, 2009 and 2008. Foreign subsidiaries are subject toincome taxes of the countries in which they operate.
The tax eﬀects of signiﬁcant temporary diﬀerences and loss carryforwards which resulted in deferred tax assets and liabilities at March 31,
2009 and 2008 are as follows:

Sysmex Annual Report 2009

Millions of Yen

Deferred tax assets (Current):
Unrealized intercompany proﬁts
Inventories
Accrued bonuses
Accrued enterprise tax
Tax loss carryforwards
Other
Less valuation allowance
Total
Deferred tax assets (Non-current):
Depreciation
Liability for retirement beneﬁts
Tax loss carryforwards
SoftwareInvestment securities
Other
Less valuation allowance
Total
Deferred tax liabilities (Current)
Deferred tax liabilities (Non-current):
Net unrealized gain on
available-for-sale securities
Revaluation of land forconsolidation
Investment loss for subsidiaries
capital reduction bycorporation tax law
Other
Total
Net deferred tax assets

Thousands of
U.S. Dollars
2009

2009

2008

¥ 1,763
318
793
45
1,691
(6)
¥ 4,604¥ 1,965
151
829
189
67
1,313
(8)
¥ 4,506

17,254(61)$ 46,979

¥ 104
117
144
505
369
953
(384)
¥ 1,808

¥ 120
187
203
542
284
103
(127)
¥ 1,312$ 1,061
1,194
1,469
5,153
3,765
9,725
(3,918)$ 18,449

¥

6

¥

16

$

61

¥

12

¥ 245

$

122

457

457

4,663

431
1,238
¥ 2,138¥ 4,268430
1,625¥ 2,757¥ 3,045

4,398
12,633$ 21,816$ 43,551$ 17,990
3,245
8,092
459

A reconciliation between the normal eﬀective statutory tax rates and theactual eﬀective tax rates reﬂected in the accompanying consolidated statements of income for the years ended March 31, 2009 and 2008 is as follows:
2009
2008
40.6%
40.6%
Normal eﬀective statutory tax rate
3.2
2.5
Expenses not deductible for income tax purposes
0.8
0.7
Per capita levy
(4.5)
(4.4)
Foreign tax credit
Tax eﬀect on elimination of dividends from
6.7
3.4
foreign subsidiaries
(2.7)
(3.3)
Research and development tax credit
Tax eﬀect on undistributed earnings of foreign
(3.4)
5.2
subsidiaries
(8.6)
(6.6)
Diﬀerent tax rates applied to foreign subsidiaries
1.0
(6.5)
Change in valuation allowance
1.8
3.0
Other - net
Recognition period of actuarial gain/loss
34.9%
34.6%
Certain subsidiaries have tax loss carryforwards available to oﬀset
future taxable income as of March 31, 2009 of approximately ¥274 million($2,796 thousand). These tax loss carryforwards, if not utilized, will expire
mainly in 2016.

10. LEASES

11. DERIVATIVES(Lessee)
Lease obligations at March 31, 2009 consisted of the following:
Millions ofThousands of
Yen
U.S. Dollars

The Group enters into foreign currency forward contracts and foreign
currency option contracts to hedge foreign exchange risk associated withcertain assets and liabilities denominated in foreign currencies.
The Group also enters into interest rate swap contracts to manage its
interest rate exposures on certain liabilities.
All derivative transactions are entered into to hedge interest andforeign currency exposures incorporated within the Group’s business.
Accordingly, market risk in these derivatives is basically oﬀset by opposite
movements in the value of hedged assets or liabilities. The Group does
not hold or issue derivatives for trading purposes.
Because the counterparties to these derivatives are limited to majorinternational ﬁnancial institutions, the Group does not anticipate any
losses arising from credit risk.
Derivative transactions entered into by the Group have been madein accordance with internal policies which regulate the authorization andcredit limit amount.
The contract or notional amounts of derivatives which are shown in
the following table do not represent the amounts exchanged by the partiesand do not measure the Group’s exposure to credit or market risk.
The fair value of the Group’s derivative ﬁnancial instruments at Mach
31, 2009 is as follows:
Millions of Yen
Thousands of U.S. Dollars
Contract
Fair Unrealized Contract
Fair Unrealized
Amount Value Gain/Loss Amount Value Gain/Loss
Foreign currency
forward contracts:
Selling:¥ 4,330 ¥ 4,463¥ (133) $ 44,184 $ 45,541 $ (1,357)
US dollars
Euro
2,995
3,126
(131) 30,561 31,898(1,337)
Total¥ 7,325 ¥ 7,589¥ (264) $ 74,745 $ 77,439 $ (2,694)

Lease obligations¥ 3,671

Less current portion(1,521)$ 37,459(15,520)

Less obligations, less current portion¥ 2,150$ 21,939

The future minimum payments required at March 31, 2009 were as follows:
Millions ofThousands ofYear Ending March 31
Yen
U.S. Dollars
2010¥ 1,521$ 15,520

2011

1,185

12,092

2012

660

6,735

2013

275

2,806

2014

19

194

2015 and thereafter

11

112

¥ 3,671$ 37,459

Total

The minimum rental commitments under noncancelable operatingleases at March 31, 2009 were as follows:
Millions ofThousands of
Yen
U.S. Dollars
Due within one year

¥ 372

Due after one year

1,495

15,255¥ 1,867$ 19,051(Lessor)The net investment in lease are summarized as follows:
Millions ofYen

Thousands of
U.S. Dollars

Total$ 3,796

Gross lease receivables¥ 710

Estimated residual values

80

816

Unearned interest income(168)(1,714)

Investments in lease, current¥ 622$ 6,347$ 7,245

Maturities of investment in lease for ﬁnance leases that deem not totransfer ownership of the leased property to the lessee are as follows:
Millions ofThousands ofYear Ending March 31
Yen
U.S. Dollars
2010

¥ 152

$ 1,551

2011

153

1,561

2012

154

1,571

2013

142

1,449

2014

97

990

2015 and thereafter

12

123

¥ 710

$ 7,245

Total

Note: Amounts for forward exchange contracts in the column entitled Fair Value represent the notional amount of the contracts at March 31 forward currency rates.

Future rental income under operating leases (including imputed
interest income):
Thousands ofMillions
U.S. Dollarsof Yen2009
2009
Due within one year
¥ 360
$ 3,673
Due after one year
449
4,582
Total
¥ 809
$ 8,255

12. NET INCOME PER SHARE
Reconciliation of the diﬀerences between basic and diluted net income pershare (“EPS”) for the years ended March 31, 2009 and 2008 is as follows:
Millions of Thousands ofYen
Dollars
Yen
U.S. Dollars
Weighted
Net
Average
EPS
IncomeSharesFor the year ended March 31, 2009:
Basic EPS
Net income available to¥ 8,014
51,132,256 ¥ 156.72$1.60
common shareholders
Eﬀect of Dilutive
Securities
87,456
Stock options
Diluted EPS
Net income for¥ 8,01451,219,712 ¥ 156.46$1.60
computation
For the year ended March 31, 2008:
Basic EPS
Net income available to¥ 9,132
common shareholders
Eﬀect of Dilutive
Securities
Stock options
Diluted EPS
Net income forcomputation¥ 9,132

51,032,859 ¥ 178.94

175,854

51,208,713 ¥ 178.33
Sysmex Annual Report 200977

Consolidated Financial Statements

13. SUBSEQUENT EVENTS
a. Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2009 was approved at the shareholders’ general meeting of the Company held on June 19, 2009:
Millions of Thousands of
Yen
U.S. Dollars
Year-end cash dividends, ¥26 ($0.27) per share78¥ 1,330$ 13,571

14. SEGMENT INFORMATION
a. Industry Segments
The Group’s main operations are to manufacture and sell laboratory testing instruments and reagents used by clinical laboratories around the world. Under
Japanese accounting regulations, the Group is not required to disclose industry segment information because its main industry segment represented morethan 90% of its operations.

b. Geographical Segments
The geographical segments of the Group for the years ended March 31, 2009 and 2008 are summarized as follows:
Millions of Yen

2009
Japan
Sales to customers
Interarea transfer
Total sales
Operating expenses
Operating income
Total assets¥ 37,589
31,501
69,09064,418¥4,672¥ 80,339

Americas¥ 23,368
2
23,37021,581¥1,789¥ 14,860

EuropeChina

Asia Pacific¥ 35,387
521
35,90830,773¥ 5,135¥ 24,790¥ 10,111
9
10,1208,811¥ 1,309¥ 7,601¥5,388
184
5,572
4,925
¥647
¥3,810Eliminations/
Consolidated
Corporate¥ 111,843¥ 111,843
32,217¥ (32,217)
144,060(32,217)
111,843
130,508(33,799)
96,709¥ 13,552¥ 1,582¥ 15,134¥ 131,400¥ (12,878) ¥ 118,522
Total

Millions of Yen

2008
Japan
Sales to customers
Interarea transfer
Total sales
Operating expenses
Operating income
Total assets¥ 37,553
29,327
66,88059,010¥ 7,870¥ 80,426

Americas¥ 20,845
166
21,011
20,020¥991¥ 10,453

Europe¥ 39,175
411
39,58634,965¥ 4,621¥ 23,598

China

Asia Pacific¥ 8,127
14
8,141
7,317
¥ 824
¥ 5,819¥ 5,024
255
5,279
4,732
¥ 547
¥ 3,800

Eliminations/
Consolidated
Corporate¥ 110,724¥ 110,724
30,173¥ (30,173)
140,897(30,173)
110,724
126,044(30,353)
95,691¥ 14,853¥
180¥ 15,033¥ 124,096¥ (15,069) ¥ 109,027
Total

Thousands of U.S. Dollars

2009

Sales to customers
Interarea transfer
Total sales
Operating expenses
Operating income
Total assets

Japan

Americas

EuropeChina$ 383,561
321,439705,000
657,327$ 47,673$ 819,786$ 238,449
20
238,469
220,214$ 18,255$ 151,633$ 361,092
5,316
366,408
314,010$ 52,398$ 252,959$ 103,173
92
103,265
89,908$ 13,357$ 77,561

Asia Pacific$ 54,980
1,878
56,85850,255$6,603$ 38,877

Eliminations/
Consolidated
Corporate$ 1,141,255$ 1,141,255
328,745 $ (328,745)
1,470,000(328,745) 1,141,255
1,331,714(344,888)
986,826$ 138,286 $ 16,143 $ 154,429$ 1,340,816 $ (131,408) $ 1,209,408
Total

Notes: 1) As discussed in Note 2.b, eﬀective April 1, 2008, the Company applied PITF No. 18, “Practical Solution on Uniﬁcation of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial Statements”. The eﬀect of this change was to increase operating income of Americas by ¥121 million($1,235 thousand) and operating income of Europe by ¥348 million ($3,551 thousand) for the year ended March 31, 2009.
2) As discussed in Note 2.g, eﬀective April 1, 2008, the Company applied ASBJ Statement No. 9, “Accounting Standard for Measurement of Inventories”. The
eﬀect of this change was to decrease operating income of Japan by ¥306 million ($3,122 thousand) for the year ended March 31, 2009.

c. Sales to Foreign Customers
Sales to foreign customers for the years ended March 31, 2009 and 2008 consisted of the following:
Millions of Yen
Americas
EuropeChina
Asia Paciﬁc
Total
Sysmex Annual Report 20092009
¥ 23,414
35,454
10,111
7,036¥ 76,015

2008¥ 20,908
39,2358,128
6,492¥ 74,763

Thousands of
U.S. Dollars
2009$ 238,918
361,776
103,173
71,796$ 775,663

INDEPENDENT AUDITORS’ REPORT

79

Sysmex Annual Report 2009

Corporate Information
Network

Sysmex UK Limited
Sysmex Logistics UK Ltd.
Jinan Sysmex Medical Electronics Co., Ltd.
Sysmex France S.A.S.

80

Sysmex Wuxi Co., Ltd.
Sysmex Nederland B.V.
Sysmex Belgium N.V.

Sysmex Infosystems China, Ltd.

Sysmex Belgium IT S.A.

Sysmex San Tung Co., Ltd.

Sysmex Deutschland GmbH
Welltec GmbH
Sysmex Europe GmbH
Sysmex Polska Sp.z o.o.
Sysmex America, Inc.
Sysmex CZ s.r.o.
Sysmex Slovakia s.r.o.
Sysmex Hungaria Kft.

Japan
Sysmex Shanghai Ltd.

Sysmex RA Co., Ltd.
Sysmex CNA Co., Ltd.
Sysmex bioMérieux Co., Ltd.

Sysmex India Pvt. Ltd.

Sysmex Canada, Inc.
Sysmex Reagents America, Inc.

Sysmex Belgium IT S.A.
Sysmex Austria GmbH
Sysmex Middle East FZ - LLC
Sysmex Digitana AG

Sysmex Hong Kong Limited

Sysmex Transasia Services Pvt. Ltd.
Sysmex (Thailand) Co., Ltd.
Sysmex (Malaysia) Sdn Bhd

Sysmex do Brasil
Industria e Comercio Ltda.

PT. Sysmex Indonesia

Sysmex Asia Pacific Pte Ltd.

Sysmex South Africa (Pty) Ltd.
Sysmex New Zealand Limited

Sysmex Logistics Co., Ltd.
Sysmex TMC Co., Ltd.
Sales
Production
R&D
Distribution
Regional Headquarters

Sysmex International Reagents Co., Ltd.
(Ono Factory)
Sysmex Medica Co., Ltd.
Sysmex International Reagents Co., Ltd.
(Head Office/Seishin Factory)
Kakogawa Factory
Technopark

Head Office

Solution Center
Research and Development Center

Kansai Area

Sysmex Annual Report 2009

(As of April 1, 2009)Japan
Sysmex Corporation
Sysmex International Reagents Co., Ltd.
Sysmex RA Co., Ltd.
Sysmex Medica Co., Ltd.
Sysmex TMC Co., Ltd.
Sysmex CNA Co., Ltd.
Sysmex Logistics Co., Ltd.
Sysmex bioMérieux Co., Ltd.

1-5-1 Wakinohama-Kaigandori, Chuo-ku, Kobe, Hyogo 651-0073, Japan
Head Office/Seishin Factory 4-3-2 Takatsukadai, Nishi-ku, Kobe, Hyogo 651-2271, Japan
Ono Factory 17 Takumidai, Ono, Hyogo 675-1322, Japan
1850-3 Hirookanomura, Shiojiri, Nagano 399-0702, Japan
323-3 Miyaoki, Yumesaki-cho, Himeji, Hyogo 671-2121, Japan
1-3-2 Murotani, Nishi-ku, Kobe, Hyogo 651-2241, Japan
2-3-7 Hakata Eki Mae, Hakata-ku, Fukuoka 812-0011, Japan
17 Takumidai, Ono, Hyogo 675-1322, Japan
1-2-2 Ohsaki, Shinagawa-ku, Tokyo 141-0032, Japan

TEL: (+81) 78-265-0500
TEL: (+81) 78-991-2211
TEL: (+81) 794-62-7001
TEL: (+81) 263-54-2251
TEL: (+81) 79-335-2080
TEL: (+81) 78-992-5883
TEL: (+81) 92-476-1121
TEL: (+81) 794-64-2326
TEL: (+81) 3-6834-2666

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1 Nelson C. White Parkway, Mundelein, IL 60060, U.S.A.
2 Nelson C. White Parkway, Mundelein, IL 60060, U.S.A.
5045 Orbitor Drive Building 9, Suite 401 Mississauga, ON L4W 4Y4, Canada
Rua Joaquim Nabuco, 615-Bairro Cidade Jardim-Sao Jose dos Pinhais-Parana- Brasil-CEP 83040210

TEL: (+1) 847-996-4500
TEL: (+1) 847-367-2800
TEL: (+1) 905-366-7900
TEL: (+55) 41-2104-1314

FAX: (+1) 847-996-4505
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FAX: (+1) 905-366-7899
FAX: (+55) 41-2104-1300

Bornbarch 1, 22848 Norderstedt, Germany
Bornbarch 1, 22848 Norderstedt, Germany
Rheingaustrasse 190-196, 65203 Wiesbaden, Germany
Sysmex House, Garamonde Drive, Wymbush, Milton Keynes, MK8 8 DF, U.K.
Unit 4 IO Centre, Fingle Drive, Stonebridge, Milton Keynes, MK13 0AT, Buckinghamshire, U.K.
Paris Nord II, 22, avenue des Nations, B.P. 50414 Villepinte, 95944 ROISSY-CDG Cedex, France
Rue Pres Champs 25B, 4671 Barchon, Belgium
Park Rozendal, Building A Terhulpsesteenweg 6a 1560 Hoeilaart, Belgium
Ecustraat 11, 4879 NP Etten Leur, The Netherlands
Kopernik Office Building, III Al. Jerozolimskie 176, 02-486 Warszawa, Poland
Tödistrasse, 50, 8810 Horgen, Switzerland
Odoakergasse 34-36 A-1160 Wien, Austria
Villam U.2, 1089 Budapest, Hungary
Elgartova 4/683 61400 Brno Czech Republic
Galvaniho 15/A 821 04 Bratislava, Slovakia
Dubai Healthcare City City Pharmacy Building C/P 72, Office 201 P.O. Box 505119, Dubai, U.A.E.
Fernridge Office Park, Block 2; 5 Hunter Avenue; Ferndale; Randburg 2194 RSA

TEL: (+49) 40-527260
TEL: (+49) 40-5341020
TEL: (+49) 6119-628-823
TEL: (+44) 870-902-9210
TEL: (+44) 870-902-9230
TEL: (+33) 1-48-170190
TEL: (+32) 4-387-9393
TEL: (+32) 2-769-7474
TEL: (+31) 76-508-6000
TEL: (+48) 22-57284-00
TEL: (+41) 44-718-38-38
TEL: (+43) 1-4861631
TEL: (+36) 1-3143076
TEL: (+420) 548-216-855
TEL: (+421) 2-6453-2881-2
TEL: (+971) 4-4370515
TEL: (+27) 11-3299480

FAX: (+49) 40-52726100
FAX: (+49) 40-5232302
FAX: (+49) 6119-628-824
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FAX: (+971) 4-4370516
FAX: (+27) 11-7899276

9th Floor, Azia Center, 1233 Lujiazui Ring Road, Shanghai, 200120, China
9th Floor, Azia Center, 1233 Lujiazui Ring Road, Shanghai, 200120, China
7493 Airport Road, Yaoqiang Town, Licheng District, Jinan City, Shandong Province, China; PC. 250107
Rm. 1509, 15/ F., Tower 1, Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong
#8-9, No. 93, Science Technology Stand-up Park, New District, Wuxi, Jiangsu, 214028, China

TEL: (+86) 21-6888-2626
TEL: (+86) 21-6888-2606
TEL: (+86) 531-8873-4440
TEL: (+852) 2543-5123
TEL: (+86) 510-8534-5837

FAX: (+86) 21-6888-2625
FAX: (+86) 21-6888-2605
FAX: (+86) 531-8873-4442
FAX: (+852) 2543 -5181
FAX: (+86) 510-8534-3896

2 Woodlands Sector 1, #01-06 Woodlands Spectrum, Singapore 738068
No.11A&15, Jalan PJS 7/12, Bandar Sunway, 46150 Petaling Jaya, Selangor, Malaysia
14 Soi Ramkamhaeng 43/1, Ramkamhaeng Road, Wangthonglang, Bangkok 10310, Thailand
Menara Hijau, Suite 1005 JI. MT. Haryono Kav. 33, Jakarta, 12770 Indonesia
308, ASCOT Centre, 3rd Floor, Next to Hotel Le Royal Meridian Sahar Airport Road, Andheri (East) MUMBAI 400 099, India
308, ASCOT Centre, 3rd Floor, Next to Hotel Le Royal Meridian Sahar Airport Road, Andheri (East) MUMBAI 400 099, India
1 ST Fl., 11, Lane 6, Sec. 1, Hangchow S. Rd., Taipei, Taiwan R.O.C.
382-386 Manukau Road, Epsom, Auckland 1344, New Zealand

TEL: (+65) 6221-3629
TEL: (+60) 3-56371788
TEL: (+66) 2539-1127
TEL: (+62) 21-7986005
TEL: (+91) 22-2822-4040
TEL: (+91) 22-2822-4040
TEL: (+886) 2-2341-9290
TEL: (+64) 9-630-3554

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FAX: (+886) 2-2341-9275
FAX: (+64) 9-630-8135

1-5-1 Wakinohama-Kaigandori, Chuo-ku, Kobe, Hyogo 651-0073, Japan
1-2-2 Ohsaki, Shinagawa-ku, Tokyo 141-0032
4-4-4 Takatsukadai, Nishi-ku, Kobe 651-2271
1-3-2 Murotani, Nishi-ku, Kobe 651-2241
1-1-2 Murotani, Nishi-ku, Kobe 651-2241
314-2 Kitano, Noguchicho, Kakogawa, Hyogo 675-0011
4-6-1 Chuo, Aoba-ku, Sendai 980-6024
4-261-1 kishiki-cho, Oomiya-ku, Saitama 330-0843
1-2-2 Ohsaki, Shinagawa-ku, Tokyo 141-0032
1-603 Kamiyashiro, Meito-ku, Nagoya 465-0025
17-1 Enoki-cho, Suita, Osaka 564-0063
3-17 Fukuro-machi, Naka-ku, Hiroshima 730-0036
4-9-24 Hakata Eki Minami, Hakata-ku, Fukuoka 812-0016
13-1 Kita Nijo Nishi, Chuo-ku, Sapporo 060-0002
1-7-25 Chuodori, Morioka City, Iwate 020-0021
2-5-26 Fukashi, Matsumoto City, Nagano 390-0815
1-20-5 Sasaguchi, Chuo-ku, Niigata City, Niigata 950-0911
1-3 Nakase, Mihama-ku, Chiba 261-8501
2-5-11 Takamatsu, Suruga-ku, Shizuoka City, Shizuoka 422-8034
2-11-1 Ekinishi Honmachi, Kanazawa City, Ishikawa 920-0025
3-1 Mibu Kayo Gosho-cho, Nakagyo-ku, Kyoto 604-8811
4-1-2 Kumoidori, Chuo-ku, Kobe 651-0096
1-6-6 Bancho, Takamatsu City, Kagawa 760-0017
3-10 Togiya-cho, Kita-ku, Okayama 700-0826
2-9-13 Komatsubara, Kagoshima City, Kagoshima 891-0114
2-16-2 Minami-kamata, Ota-ku, Tokyo 144-0035

TEL: (+81) 78-265-0500
TEL: (+81) 3-5434-8910
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FAX: (+81) 3-5711-8302

Americas
Sysmex America, Inc.
Sysmex Reagents America, Inc.
Sysmex Canada, Inc.
Sysmex do Brasil Industria e Comercio Ltda.
EuropeSysmex Europe GmbH
Sysmex Deutschland GmbH
Welltec GmbH
Sysmex UK Limited
Sysmex Logistics UK Ltd.
Sysmex France S.A.S.
Sysmex Belgium IT S.A.
Sysmex Belgium N.V.
Sysmex Nederland B.V.
Sysmex Polska Sp.z o.o.
Sysmex Digitana AG
Sysmex Austria GmbH
Sysmex Hungaria Kft.
Sysmex CZ s.r.o.
Sysmex Slovakia s.r.o.
Sysmex Middle East FZ-LLC
Sysmex South Africa (Pty) Ltd.
China
Sysmex Shanghai Ltd.
Sysmex Infosystems China, Ltd.
Jinan Sysmex Medical Electronics Co., Ltd.
Sysmex Hong Kong Limited
Sysmex Wuxi Co., Ltd.
Asia PacificSysmex Asia Pacific Ptd Ltd.
Sysmex (Malaysia) Sdn Bhd
Sysmex (Thailand) Co., Ltd.
PT. Sysmex Indnesia
Sysmex Transasia Services Pvt. Ltd.
Sysmex India Pvt. Ltd.
Sysmex San Tung Co., Ltd.
Sysmex New Zealand Limited
Domestic Offices
Head Office
Tokyo Office
Technopark
Solution Center
Research and Development Center
Kakogawa Factory
Sendai Branch
Kita Kanto BranchTokyo Branch
Nagoya Branch
Osaka Branch
Hiroshima Branch
Fukuoka Branch
Sapporo Sales OfficeMorioka Sales Office
Nagano Sales OfficeNiigata Sales Office
Chiba Sales Office
Shizuoka Sales Office
Kanazawa Sales Office
Kyoto Sales Office
Kobe Sales OfficeTakamatsu Sales Office
Okayama Sales Office
Kagoshima Sales Office
Metropolitan Area Service Center

Sysmex Annual Report 200981

Corporate Information

Consolidated Affiliates (As of April 1, 2009)

Japan

82

Americas
EuropeChina
Asia PacificCorporate nameLocation

Main Business

EquityEstablished Ownershipby Group

Sysmex International Reagents Co., Ltd.

Japan

Manufacture of in vitro diagnostic reagents

1969

100.00%

Sysmex RA Co., Ltd.

Japan

Development and manufacture of industrial measuring and testing instrument

1978

96.40%

Sysmex Medica Co., Ltd.

Japan

Manufacture of disposable products; Assembly of important parts for in vitro diagnostic
systems

1978

100.00%

Sysmex TMC Co., Ltd.

Japan

Leasing of in vitro diagnostic systems and office instrument

1992

100.00%

Sysmex CNA Co., Ltd.

Japan

Development and sales of software for diagnostic information systems

1996

100.00%

Sysmex Logistics Co., Ltd.

Japan

Distribution and stock of in vitro diagnostic systems and reagents

1997

100.00%

Sysmex bioMérieux Co., Ltd.

Japan

Sales and marketing of bioMérieux products

2008

34.00%

Sysmex America, Inc.

U.S.A.

Sales of in vitro diagnostic systems and reagents

2003

100.00%

Sysmex Reagents America, Inc..

U.S.A.

Manufacture and sales of reagents for in vitro diagnostic systems

1993

100.00%

Sysmex Canada, Inc.

CanadaSales of in vitro diagnostic systems and reagents

2007

100.00%

Sysmex do Brasil Industria e Comercio Ltda.

BrazilManufacture and sales of reagents for in vitro diagnostic systems

1998

100.00%

Sysmex Europe GmbHGermany

Customer and sales support for in vitro diagnostic systems and reagents; Manufacture andsales of reagents for in vitro diagnostic systems

1980

100.00%

Sysmex Deutschland GmbHGermany

Sales of in vitro diagnostic systems and reagents

1995

100.00%Welltec GmbHGermany

Inspection and provision of information on foodstuffs and health for general consumers

2002

75.20%

Sysmex UK Limited

U.K.

Sales of in vitro diagnostic systems and reagents

1991

100.00%

Sysmex Logistics UK Ltd.

U.K.

Distribution and stock of in vitro diagnostic systems and reagents

2003

100.00%

Sysmex France S.A.S.

FranceSales of software for diagnostic information systems; Customer and sales support for in vitro
2000
diagnostic systems and reagents

100.00%

Sysmex Belgium IT S.A.

Belgium

Development and sales of software for diagnostic information systems

1997

100.00%

Sysmex Belgium N.V.

Belgium

Sales of diagnostic instruments, reagents, laboratory information systems, and measurement devices in industrial fields, and related after-sales support

2009

100.00%

Sysmex Nederland B.V.

Nederland

Sales of diagnostic instruments, reagents, laboratory information systems, and measurement devices in industrial fields, and related after-sales support

2009

100.00%

Sysmex Polska Sp.z o.o.

PolandCustomer and sales support for in vitro diagnostic systems and reagents

2005

100.00%

Sysmex Digitana AG

Switzerland

Sales of in vitro diagnostic systems and reagents

2006

80.00%

Sysmex Austria GmbH

Austria

Sales of in vitro diagnostic systems and reagents

2007

100.00%

Sysmex Hungaria Kft.

Hungary

Sales of in vitro diagnostic systems and reagents

2007

100.00%

Sysmex CZ s.r.o.

Czech

Sales of in vitro diagnostic systems and reagents

2007

100.00%

Sysmex Slovakia s.r.o.

Slovakia

Sales of in vitro diagnostic systems and reagents

2007

100.00%

Sysmex Middle East FZ-LLC

U.A.E.

Support of distributors related to sales and services of diagnostic instruments, reagents, and2008
laboratory information systems

100.00%

Sysmex South Africa (Pty) Ltd.

South Africa

Customer and sales support2006

100.00%

Sysmex Shanghai Ltd.

China

Sales of in vitro diagnostic systems and reagents

2000

100.00%

Sysmex Infosystems China, Ltd.

China

Development and sales of software for diagnostic information systems

2000

100.00%Jinan Sysmex Medical Electronics Co., Ltd.

China

Manufacture and sales of reagents for in vitro diagnostic systems

1995

100.00%

Sysmex Hong Kong Limited

China

Sales of in vitro diagnostic systems and reagents

1999

100.00%

Sysmex Wuxi Co., Ltd.

China

Development, manufacture and sales of reagents for in vitro diagnostic systems

2003

100.00%

Sysmex Asia Pacific Ptd Ltd.

Singapore

Customer and sales support for in vitro diagnostic systems and reagents

1998

100.00%

Sysmex (Malaysia) Sdn Bhd

Malaysia

Sales of in vitro diagnostic systems and reagents

1998

100.00%

Sysmex (Thailand) Co., Ltd.

Thailand

Sales of in vitro diagnostic systems and reagents

1999

100.00%PT. Sysmex Indnesia

Indonesia

Sales of in vitro diagnostic systems and reagents

2002

100.00%

Sysmex Transasia Services Pvt. Ltd.

India

To promote scientific services.

2009

51.00%

Sysmex India Pvt. Ltd.

India

Manufacture and sales of in vitro diagnostic systems and reagents

1998

100.00%

Sysmex San Tung Co., Ltd..

TaiwanSales of in vitro diagnostic systems and reagents

2000

51.00%

Sysmex New Zealand Limited

New Zealand Development and sales of software for diagnostic information systems

2001

100.00%

Sysmex Annual Report 2009

Corporate Overview/Stock Information (As of March 31, 2009)
Sysmex Corporation

Composition of Shareholders

EstablishedFebruary 20, 1968

Number of Employees

4,148 (consolidated basis)

Individuals and Others
38.45%

Financial Institutions
25.32%

1,890 (non-consolidated basis)

Financial Instruments Firm
0.41%

*Including part-time employees

Fiscal Year

April 1 - March 31

Shareholders’ Meeting

In JuneOther Japanese Companies
9.29%
Foreign Investors
26.53%

Number of Shares Authorized 149,672,000 shares
Number of Shares Issued

51,243,508 shares

Paid-in Capital¥8,685 million

Stock Listings

Tokyo Stock Exchange, First Section
Osaka Securities Exchange, First Section

November 1995: Listed on Osaka Securities Exchange, Second Section
July 1996: Listed on Tokyo Stock Exchange, Second Section
March 2000: Listed on Tokyo Stock Exchange, First Section andOsaka Securities Exchange, First Section
Ticker Code

6869

Transfer Agent

Mitsubishi UFJ Trust and Banking
Corporation

Independent Auditor

Deloitte Touche Tohmatsu

RatingA (Rating and Investment
Information, Inc (R&I))

Distribution of Shares by Number of Shares Held
Less than 1,000 shares 3.18%

More than 1,000 shares 3.50%

Number of shares: 1,629,707(8,391 shareholders)Number of shares: 1,792,884(956 shareholders)More than 500,000 shares 59.44%

More than 5,000 shares 1.54%

Number of shares: 30,458,969(18 shareholders)Number of shares: 789,659(116 shareholders)More than 10,000 shares 11.70%
Number of shares: 5,995,517(172 shareholders)More than 100,000 shares 20.64%
Number of shares: 10,576,772(49 shareholders)Indexes
Russell/Nomura Japan Equity Indexes

Principal Shareholders

FTSE Japan Index
NOMURA400

Number of Percentage ofshares held(Thousands) shareholding

Shareholders

DSI (Daiwa Stock Indices)
S&P Japan 500

Stock Price Range and Trading Volume(Yen)
12,000Japan Trustee Services Bank, Ltd. (Trust account)

5,515

10.76

Tadako Nakatani

4,003

7.81

Tadashi Nakatani

2,995

5.85

Nakatani Kosan, Ltd.

2,574

5.02

The Master Trust Bank of Japan, Ltd. (Trust account)

2,319

4.53

THE CHASE MANHATTAN BANK, N. A.
LONDON SECS LENDING OMNIBUS ACCOUNT

1,816

3.55

National Mutual Insurance Federation ofAgricultural Cooperatives

1,640

3.20

Kazuko Ietsugu

1,531

2.99

Taeko Wada

1,531

2.99

TAIYO FUND, L.P.

1,343

2.62

10,0008,000
6,000

Cash Dividends per Share and Dividend Ratio (Consolidated)

Common stock price range (¥)

2,000
0

(%)

(Yen)

80

4,000
Tokyo Price Index close

60
4/08

5

6

7

8

9

10

11

12

1/09

2

3

4
5
(Month)(Thousands)
10,000Monthly trading volume (shares)

Figures before 2006 are adjusted for a stock
split conducted on November 18, 2005

Cash dividends per share
Dividend ratio

26.8

31.9

40

17.8

17.9

20.0

20

40

36*1

36

48*2

50

2005

2006

2007

2008

2009

8,000

0

6,000

*1: The shares of shareholders was split two for one on November 18, 2005.
*2: Including special dividends of ¥8 commemorating the 40th anniversary of theCompany’s founding.

4,000
2,000
0

4/08

5

6

7

8

9

10

11

12

1/09

2

3

4
5
(Month)Dividend Policy
We have been indicating a policy of stockholders’ equity to balance both investment
for sustainable growth and contribution toward shareholders. Upon this policy weraise strategy to keep dividend payout ratio as approximately 20% on consolidated
financial performance.

Sysmex Annual Report 200983

Sysmex Corporation
1-5-1 Wakinohama-Kaigandori,Chuo-ku, Kobe 651-0073, Japanwww.sysmex.co.jp
This brochure was printed in Japan on FSC-certified paper using 100% soy ink.