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Sustainable Improvement Programs▎ Pursuit of Quality and Trust

Providing Responsible Products, Services, and Solutions

Compliance with Related Laws and Regulations in Each Country
Used in laboratory testing, Sysmex’s products play a vital role in protecting human life and health. Sysmex has createda system that allows us to thoroughly comply with regulations worldwide, including the Japanese Act on Securing

Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices, the In Vitro Diagnostic Medical

Devices Regulation in the EU, the U.S. FDA’s Quality System Regulation, and the Regulations on the Supervision andQuality Management

Administration of Medical Devices in China, as well as maintaining and improving the safety and quality of our products.

Group Quality Management System

At Sysmex, under the supervision and management of the President, the Quality Assurance Department leads▶ Chemical Substance Management of Products

our quality management efforts. More specifically, we hold a monthly quality meeting where the managers of ourDevelopment, Production, Marketing, and Service Departments explore what we can do to monitor the quality,
effectiveness, and safety of our products and services, along with improvement measures. We also hold Quality
System Committee meetings regularly to review quality targets, responses to inspections by regulatory bodies, and amanagement review of instructions for output. This is part of our efforts to maintain the Group’s quality management

system and promote activities for improvement.

All our production facilities for final products ※ have obtained ISO 9001 or ISO 13485 certification. Of the 84
companies in the Sysmex Group, 34 have been ISO 9001 certified, and 21 have been ISO 13485 certified. In fiscal 2022,
two cases of nonconformity were identified in an internal quality audit, and five cases during an external quality audit.

Reinforcing Structures for Maintaining and Enhancing Quality
In the product development process leading up to market launch, Sysmex verifies product quality by setting up five“quality gates.” ※1 We also conduct quality- and safety-related risk assessments during a new product’s design anddevelopment phases, as well as when changes are made to the design of an existing product. If a high-risk event isnoted, we act to eliminate it. Also, when marketing products manufactured by other companies, we verify their quality
by conducting audits of the manufacturers and meticulously inspecting their products. In addition to these efforts, in theunlikely event of a product defect, we have systems in place to quickly identify and respond to any problems.
At factory sites, each month we monitor manufacturing processes and the status of supplier conformity. We instruct

Remedial action is being taken. In addition, we have been making efforts to improve quality by setting the numbers of

suppliers with high nonconformity rates to improve quality as needed, and we have a system to ensure quality throughrecalls and FDA warning letters as indicators for monitoring the progress of sustainability targets.

regular quality audits. In addition, our global quality complaint processing system allows us to gather quality information
in a timely manner from markets around the world. When we receive information about a problem or malfunction, we※ Wholly owned subsidiaries

immediately investigate the cause and cease distributing the product in question. If we need to take any corrective or▶ Status of Sustainability Targets Status of Sustainability Targets

preventive actions regarding a problem or malfunction, we promptly plan such actions in accordance with the Group’s

regulations, carry out the plan, and later verify the validity and effectiveness of the actions taken.

In 2021, in order to ensure the quality and traceability of our products, we started to utilize the Global Positioning
System (GPS) and temperature data loggers※2 for the transportation of some reagents used in testing. In the future, wewill sequentially expand the use of these methods to diagnostic reagents that require high quality assurance.

For details, refer to ID 0910589004 on www.tuv.com/（The applicable scope of activities and websites vary in accordance with the standard.）※ 1 Product design assessment, process design assessment, evaluation by Product Quality Control Department, quality management system(QMS) checks during the manufacturing process, and inspections for mass- produced items※ 2 A measurement device equipped with a thermometer and a data logger▶ Product Quality and Vigilance Control System▶ Project for Promoting Digitalization: Product Quality Improvement Activities Based on Reforming Services and Support▶ https://www.tuv.com/japan/en/▶ Quality Policy

Providing High Quality Products and Services through Third-Party Certification▶ Product Security Policy

To enhance its credibility, Sysmex is strengthening its quality assurance system regarding product inspection results.
Our Ono Factory is ISO 17034 certified. This international standard relates to the competence of reference material

producers. This was the first such certification granted in the hematology field in Japan. It recognizes a manufacturer’s ability to provide reference materials of the proper quality. This certification strengthens our credibility concerning thequality of data of our products and services, enabling our customers in global clinical laboratories to verify their own
competence to provide proper test data.

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Enhancing Customer Satisfaction

Focusing on Specialized Quality and Safety Training
In addition to Quality Policy training, Sysmex provides regular quality management training for related departments,
as well as specialized training on laws and regulations for employees in specific departments or job categories. In fiscal

Conducting Customer Satisfaction Surveys in Japan and Overseas
Sysmex conducts customer satisfaction surveys in various countries
and regions, including China and Japan as well as major countries in the2022, we provided quality training to a total of about 2,800 employees across Japan in the Group companies’ various

Americas, EMEA, ※ and the Asia Pacific region. These surveys use indicesdevelopment, production, and marketing and service departments, as well as in ISO-certified business offices. We also

customized for each country and region in accordance with the products

held quality training at all production facilities for final products and ISO-certified business offices managed by our Groupand services offered in them.

companies overseas.

Sysmex America has received the Best Customer Satisfaction award
for 16 consecutive years, as well as the Best System Performance and theBest Service awards in the hematology system manufacturer category,

Quality and Safety Information

among the IMV ServiceTrak Awards organized by IMV, a specialist provider
of market research to the medical imaging processing and the laboratory diagnostic industries. In addition, it

Sharing Customer Feedback within the Group
Sysmex established the Quality Assurance Department, which controls information regarding the quality and safetyof our products. Its function is to handle inquiries it receives from outside the Company, as well as to investigate andanalyze the information it receives; to share this information with the Design, Manufacturing, and other divisions, and to
improve quality. In addition, we have established a structure for incorporating this information in the next generation ofhas received a Supplier Legacy Award from its business partner Premier Inc. for its long-term contribution to theprovision of products and services that help improve operational efficiencies in clinical settings at low cost.
Sysmex Shanghai won several awards for excellence at the Chinese Medical Device Industry Conference inrecognition of superior product quality and after-sales service.
※ Europe, the Middle East, and Africa

products.

Customer satisfaction rating in the United States(On a scale of 1 to 10)

Fiscal 2020

Fiscal 2021

Fiscal 2022

9.28 ѲѲѲѲѲ 9.27 ѲѲѲѲѲ

9.4* Research by IMV ServiceTrak

Efforts to Incorporate Customer Feedback in Our Products and Services
Requests and comments from customers are gathered by Sysmex’s Voice of the Customer (VOC) Team. After

Product Recall and Repair Information Posted on Our Website
Sysmex posts information about product recalls and repairs on its website under “Important Product Notices.”

Working Aggressively to Stamp Out Counterfeit Reagents

analyzing this information from various perspectives, the results are provided as feedback to related divisions to utilize
them in new product development and operational improvements. In fiscal 2022, we gathered feedback from some
13,600 customers in the Japanese market, and from many customers in foreign markets. We have received a positive
response to instruments with new functions and equipment that we have added as a result of customer input, which isindicated by the VOC mark in our product catalog.

To assure accurate testing results, Sysmex asks its customers to use Sysmex-branded instruments and reagents
together. In recent years, however, counterfeit Sysmex reagents have been found in circulation in some areas. The use ofsuch reagents endangers the reliability of testing results and, in some cases, can be harmful to patients ’ health. For thisreason, Sysmex continuously monitors markets for counterfeit reagents. When they are discovered, we work with local

government institutions and judicial bodies to ensure the swift and thorough enforcement of our intellectual property
rights.
▶ Intellectual-Property-related Activities to Protect Business Models (Japanese)

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Providing Highly Satisfying User Training

Activities to Improve the Quality of Technical Services and Scientific Support Based on
Training Reforms

Sysmex provides training on instrument operation andmaintenance for customers in each region as part of customer
support. In response to the “new normal”, we have provided

As part of its training reform, Sysmex introduced a virtual training space to train its technical service

an online training system in various parts of the world in recent

engineers and scientific support personnel across the world. This virtual training space enables them toyears, by which training can be live-streamed or attended onparticipate in training and to experience and learn, through their avatars, about new software products fromdemand.

anywhere in the world. As they can share the operation of the software in a virtual space, all the participants

In addition, we have globally integrated, and begun providing,can learn how to operate the software irrespective of where they are, even without physical terminals. We

user training programs offered by Sysmex America and Sysmex

will continuously offer training in which the participants can effectively learn to provide high-quality technical

Europe in a single training program under the brand nameservices and scientific support across the world.

“Caresphere™ Academy”.

Online Training

Disseminating Useful Information

Project for Promoting Digitalization

Sysmex disseminates valuable information to its customers- Product Quality Improvement Activities Based on Reforming Services and Support Sysmex supplies its products to over 190 countries and regions around the world. However, in the past, it
has been difficult to obtain accurate information on instrument failures and service status. To address thisissue, in 2019, people involved in services and support at different regional headquarters came together andstarted a project for restructuring these business areas.
In this project, we began accumulating global data on instrument failures and service status throughin the Support Information section of its website in Japan.
Sysmex continually expands the functionalities of the website
to ensure that customers can use the website to a greater
extent, such as by adding an email magazine distribution service,
which communicates the latest information, and “My Page”

functionality, which enables users to manage content and theirbrowsing history.

common global codes created for service- and support-related information in each region. At the same time,
we formed a team of experts to monitor data, speed up the quality and service improvement process, andproactively detect defects, reducing instrument failure rates.
Support Information website (Japan)

Responding to Inquiries Rapidly and Responsibly
The Sysmex Group has established regionalcustomer support centers to reply quickly andcarefully to inquiries, as well as to respond promptly
to customer requests.
In Japan, we have established a Customer Support
Center, where experienced staff members with expert
knowledge respond to customer inquiries 24 hours aday, 365 days a year (separate agreement required foruse). By creating a database containing maintenancehistories and the details of past inquiries from
customers for quick reference, the center responds toinquiries and requests rapidly and carefully.

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▎ Strengthening supply chain management
Society

Scientific Activities
Sysmex holds scientific seminars to impart the latest information about clinical testing in various countries and regions
across the world. In Asia, we work with government agencies, including national health ministries and major academic
societies, to conduct scientific activities designed to help improve the quality of clinical testing.

Supply Chain Management

Stable Supply of Products

Holding Scientific Seminars for Medical Professionals
Sysmex has held annual Scientific Seminars since 1978 to discuss

In Japan, Sysmex has developed an efficient production

topics selected from a range of medical research areas and to provide

system for instruments by utilizing ICT to overcome global

opportunities to share the latest information and knowledge. In 2022, a

cost competition and ensure high quality for our products. The

seminar on the theme of hematologic diseases was held in hybrid form,

production of reagents, which are essential for daily testingwith both online and onsite participation, and around 3,500 people from all

carried out by medical institutions, has been expanded globally.

over the world attended. We globally distributed videos of the lectures after

In order to ensure a stable supply of our products, we procure
key raw materials from multiple sources and select production

the seminar. We also conduct participant surveys in each country in orderlocations in accordance with the concept of “local production for

to determine medical issues and interests specific to countries and regions.

local consumption”, thereby spreading out any risks. In addition,

This information is utilized to determine themes for future seminars orfor emergencies, we have created mutual supply systems among

Group initiatives.

factories and secured alternative transportation routes.

In addition, we have held many other seminars globally, in which a wide

The resurgence of novel coronavirus infections has affected

range of people participated. Through these initiatives, we aim to build
trust-based relationships with medical professionals and help improve theour business in many ways in recent years. In a tight supply

quality of healthcare.

situation for various raw materials, we obtained the cooperation▶ Scientific Support Activities to Standardize and Increase the Quality ofof suppliers in prioritizing materials intended for healthcare. As a
Sysmex Scientific Seminar 2022

Clinical Testing

result, we could secure the purchase quantities of materials andincrease inventories, enabling us to maintain a stable supply of our
products. We also managed to maintain stable supplies during
the prolonged disruption of global distribution by such measures
as using new sea routes. In addition, in Japan, we’ve promoted

Activities for Patients and the General Public
Sysmex set up the online scientific information website “Medical meets

initiatives for business continuity in an emergency. For example,

Technology” to provide information on the varied roles of technology inJanuary 2023 we started operations of new warehouses with abase-isolated structure resistant to various disasters.

healthcare from a scientific viewpoint in an easy-to-understand format.

In addition, from the viewpoint of informed consent, product information▶ Establishment of a Business Continuity Plan (BCP)

for the NCC Oncopanel ™ , a testing system for cancer genome profiling,has been newly developed with easy-to-understand explanations forpatients and their families. Such information was previously only available

Conducting CSR Surveys

to medical professionals. In response to issues related to antimicrobial

Sysmex conducts CSR surveys of its business partners. For surveys of existing business partners, we use theresistance (AMR), we are conducting a variety of initiatives, which include

the global implementation of “#AMRfighter”, an awareness-raising activity,

CSR/Sustainable Procurement Self-Assessment Tool Set developed by Global Compact Network Japan, which

and widely distribute a scientific booklet titled “Proper Use of Antibiotics”

covers a wide range of issues such as human rights, labor practices (including health and safety of employees),

directed at patients and the general public.

corruption, and the environment. We do not conduct business with new partners with inadequate CSR initiatives.

▶ Medical meets Technology (Japanese)

sort of initiatives for overseas partners. In particular, personnel in charge of procurement make local visits to

In addition to CSR surveys, we hold management interviews with new business partners. We undertake the same
▶ Things You Should Know about Testing Using the NCC Oncopanel

System (Japanese)▶ What Is Antimicrobial Resistance? (AMR)?

Scientific Information Website:“Medicine meets Technology”

determine the status of child labor and workplace environments in order to confirm that no problems exist.
Each Group company also conducts regular surveys of its business partners. Sysmex Europe conducts CSR
surveys of all new business partners regarding such aspects as human rights and green procurement. Jinan
Sysmex Medical Electronics also holds quarterly meetings with its business partners to conduct risk assessments,
in addition to carrying out environmental and occupational health and safety surveys. Sysmex Wuxi encourages
its business partners to strengthen environmental and safety management when carrying out periodic risk
assessments of them.

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Fiscal 2022 Results
The response rate for surveys of primary raw material suppliers conducted in fiscal 2022 was 90%, maintaining theprevious fiscal year's high response. Based on the results of the CSR surveys in the previous fiscal year, we identified
items with low scores or high risks and followed up with our business partners with suggestions for improvement.
We are also considering measures to strengthen suppliers’ risk management. In FY2022, we conducted on-siteverification of three primary suppliers on a trial basis, in addition to the CSR surveys. Continuing from the prior year, we
expanded the CSR surveys of secondary suppliers, conducting CSR surveys of 69 secondary suppliers jointly with 13
primary suppliers.
▶ Global Compact Network Japan Common version of CSR survey form "CSRProcurement Self-Assessment Toolset"▶ Status of Sustainability Targets

Improving the Quality of Supplied Parts and Raw Materials▎Development of Human Resources ―Employee Journey―
Creating an Attractive Workplace

Global HR Policy

Sysmex believes allowing every employee to develop

a fulfilling career is essential to sustainably enhance
its corporate value and create a highly engaged

organization. An “employee journey” encompasses all

Employment

stages of an employee’s career, from joining Sysmex toretiring or leaving Sysmex to find a new employer. We

Sysmex provides a quality assurance agreement that clearly states our requirements for the quality of goods, andhelp diverse individuals working at Sysmex build theirconcludes agreements with business partners after confirming their understanding of our procurement policy. We

own careers and learn continuously and independently.

perform quality assessments of supplied goods and audits of business partners regularly to ensure that proper quality

Evaluation

Assignment

Development

Reskilling & career shift

To support a self-driven career, we have a job-based
personnel system in place across the Group. We

control is being carried out.

have implemented various measures in accordance with defined duties and personnel requirements. These humanresource management activities follow our Global HR Policy as their fundamental principle.

Relations in the Supply Chain
At Sysmex, we strive to strengthen our relationships with trading partners by holding annual briefing sessions for our
suppliers to ensure their understanding of our business and procurement policies.
In fiscal 2022, we held BCP training for our primary suppliers, as well as explanatory meetings on the promotion ofsustainability and green procurement, in which 431 business partners in total participated.
We also hold regular meetings with overseas business partners to strengthen collaboration. Sysmex Europe

periodically holds meetings with all of its business partners, checking their compliance with Sysmex’s environmental

and social responsibilities, as well as details of business activities. Sysmex Malaysia holds monthly meetings with local
distributors to discuss customers’ needs and issues, aiming to improve product quality and customer satisfaction.

▶ Global HR Policy

Diverse Talent Acquisition
Recognizing that innovation comes from diversity in talent, Sysmex Corporation hires people with different

experiences and values. Under the slogan of “anywhere, anytime, and anyone”, we hire people throughout the year

based on their personal character, regardless of nationality, race, gender, age, employment history, or disability.
Our recruitment is based on job type and position, allowing applicants to apply in accordance with their
specializations or work preferences. We also monitor our efforts to hire job applicants directly from overseas
universities ※ 1 and set hiring targets by gender ※ 2 to actively promote the recruitment of diverse individuals.

Conducting Internal Awareness Activities to Ensure Compliance with Legislation
Sysmex uses an electronic procurement system to prevent undue reduction in payments and return of products. In

addition, all members of Sysmex Corporation’s Procurement Department and relevant members of Sysmex’s domestic

Group companies undergo training on the Subcontract Act. For people newly assigned, we also provide training on our
procurement policy, CSR, and procurement risks.

Hiring and developing human resources who support our growth strategy is an important aspect of our humancapital strategy. We have been investing in human capital, maintaining a balance between the sustainableimprovement of value-added productivity (28 million yen per employee in fiscal 2022) and total labor cost.
※ 1 Proportion of employees with foreign citizenship, hired directly from overseas universities, among all new graduates hired: about 10% infiscal 2022

※ 2 Proportion of female employees among all new graduates hired: 35.9% in fiscal 2022 and 40% as a target for fiscal 2023

▶ Procurement Policy▶ Green Procurement Standards▶ Anti-Slavery and Human Trafficking Policy

Assignment According to the Needs of Employees and Teams
At Sysmex Corporation, employees are assigned jobs by matching their desires with the requirements of divisions,to promote their self-driven career development.
A matching algorithm is used to determine the divisions that new recruits should be assigned to, ensuring thatboth the recruit’s desires and the requirements of the divisions are considered. As a foundation for self-driven careerdevelopment, we have also introduced an apprentice system ※ whereby our employees can undertake new roles.
This offers them opportunities to develop their career prospects by broadening their expertise.

These actions yielded significant results in fiscal 2022. The three-year turnover rate for new graduates was 0%, andthe voluntary turnover rate was 2.7%, achieving our target of less than 3.0%.
※ When there is a vacant position, a specified trial period is set for an apprentice so that the employee’s potential for both the position and theteam can be determined before formal assignment.

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