True to Life

Integrated
Report2023

2023.10

OUR PURPOSE

Making people’s
lives healthier,safer and more fulfilling

Since developing the world’s first practical gastrocamera in 1950,
Olympus has worked alongside healthcare professionals tocontribute to the evolution of endoscopy.
Our highest priority is to ensure patient safety, and we are committed
to elevating the standard of care to improve outcomes by focusing on
enhancing patient care pathways from early detection, diagnosis andstaging, and minimally invasive treatment.

We are True to Life
By embracing Our Purpose of “Making people’s lives healthier,safer and more fulfilling,” Olympus continues to contribute tosociety through its businesses.
As a leading global MedTech company, we aim to achieve both
ambitious leaps and sustainable growth under the new company
strategy. Please look forward to Olympus delivering on its promises
and soaring beyond our new horizon.
01

Message from the CEO

Ensuring patient safety is
our top priority and becoming a
global MedTech company recognized
for its innovative products and solutions,as well as its people.”
I am delighted to take up this incredible opportunity and I sincerely express my gratitude
and delight at being named the new Olympus CEO and I am excited to continue ourtransformation initiated by my predecessor Yasuo Takeuchi. The first stage of Olympus’
transformation was a huge success in terms of becoming a pure MedTech player, increasing
performance, and striving for a more globalized organization with a global leadership. We
are now at the start of the second stage, where we will shift to grow. From here, myaspiration is for us to become a leading global MedTech company that is recognized by all
our stakeholders for its innovative products and solutions, as well as its people.

Initiatives in Pursuit ofPatient Safety and Sustainability

Director, Representative Executive Officer,
President and Chief Executive Officer

Stefan Kaufmann

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Olympus Integrated Report 2023

We are making progress toward becoming a global
MedTech company. We have successfully divested our
Imaging Business and Scientific Solutions Business, andhave established a united and globalized senior
management team transforming us into a pure MedTech
player. However, the situation that we are in today inconnection with three Food and Drug Administration (FDA)
warning letters we received in fiscal year 2023 is an
opportunity for us all to recognize that we must
fundamentally improve our corporate culture, processes,
and systems to meet the expectations of regulators andstakeholders. We put patient safety first and must continue
to make meaningful improvements in quality assurance andregulatory affairs (QARA) over the next two to three years.

One of the critical success factors of Transform Olympus
over the last four years has been giving equal weight toimproving both financial performance and organizational
health. We must now do the same with QARA remediation,
where we are not only focusing heavily on addressing issues
arising from the FDA observations at our sites globally, but
are also executing remediation on a broader scale thatcovers our entire manufacturing landscape and R&D
processes. This is because we want to be able to improveacross the whole organization, not just those sites that havereceived warning letters. We have already established aholistic transformation program to investigate the detail androot cause behind the warning letters and to address areasthat need to be enhanced. We are doing this by examining

03

Message from the CEO

our global operating model, global process harmonization,and IT enterprise architecture, which still bears the legacy ofa Japanese manufacturing company with highly
decentralized components. We are also developing a
dedicated program to help change embedded mindsets
and bring in the necessary capabilities to fulfill ourcommitments when it comes to patient safety. Culturaltransformation starts from the top, and every decision must
put patient safety first. As a result, leadership must set theright tone by actively discussing patient safety with
employees and help them understand the importance of aquality mindset. We understand that this requires investingheavily in training and education, as well as rewarding
employees who act with patient safety in mind.
In the past, I believe we saw patient safety and quality as
a functional responsibility, which is one of the reasons we did
not achieve the results we expected in our efforts to improve
our quality management systems. Patient safety and quality
are relevant to all Olympus employees and led by the CEO.
With this in mind, since becoming CEO in April 2023, I haveprioritized two key areas and communicated this clearly to
our employees. I have also been strengthening
communication with all stakeholders, including patients,
healthcare providers, and regulators. By bringing in a team of
MedTech QARA experts to assist us in developing one global
quality management system and transforming the corporate
culture, we have significantly enhanced our QARA capabilities
and resources. From a governance perspective, we havediscussed with the Board of Directors the establishment of a
QA&RA Committee that is composed of three outside
directors with experience in leading global MedTech
companies and QARA knowledge. They meet monthly withthe executive team, monitor initiatives, and provide strategic
advice. I am particularly pleased that, over the last few years,
we have increased the capabilities at the Board level bybringing in new members with MedTech experience andpromoting the Board of Directors and the executive team tocooperate closely on patient safety and QARA.
As announced in the company strategy, we will invest
approximately ¥60 billion over the next three years on
strengthening QARA. This is a necessary investment rather
than a cost because we are not only addressing issues
arising from the FDA observations, but also taking a more
holistic approach to create a steadfast foundation designed
to meet patients’, customers’, and regulators’ expectations
and ensure patient safety is our top priority. Operational
performance will also improve given our digitizing andoptimizing manufacturing efforts that will help reduce costsby creating a more streamlined and harmonized operating
model. We expect SG&A ratio to be reduced due to greater
clarity on decision-making authority and improved R&D andregulatory processes that will ultimately accelerate our ability
to deliver products to customers while keeping productsafety a top priority. QARA transformation will unleash
Olympus’ full potential and make us more sustainable andstronger. We do not want to miss out on this opportunity.

Our Six ESG Focus Areas
We have revisited our ESG strategy to fully integrate it into
the new company strategy. This solved our problem of
having a siloed ESG strategy by making it an integral partof the company, business and overall functional strategy.
My personal aim is for Olympus to become an ESG leader
among global MedTech companies through six focus areas:
Healthcare Access and Outcome; Compliance, ProductQuality and Safety; Responsible Supply Chain; Healthy
Organization; Carbon Neutral Society and Circular
Economy; and Corporate Governance. These ESG focus
areas are crucial to Olympus’ sustainability and contribution
to society. For example, one of our top priorities in
Healthcare Access and Outcomes is to enhance colorectal
cancer related training by 20% in target emerging countries
and regions. Healthcare in many of these markets is still
underdeveloped, and Olympus has a strong track record ofbeing the first to deliver training and education to
healthcare professionals. Another focus area is to have a
Healthy Organization, which is critical to my goal of having
Olympus recognized by its stakeholders for its innovative
products and people, as well as being an ESG leader. I
04

Olympus Integrated Report 2023

want our employees to come to work smiling, knowing thatthey are part of a unified and collaborative working
environment where they can contribute to Our Purpose of“making people’s lives healthier, safer and more fulfilling,”with a leadership that cares about their well-being andcareer advancement. A key priority within Healthy
Organization is for 30% of management positions globallyto be held by women by fiscal year 2028. Setting a target
is vital for initiating change while demonstrating an
unwavering commitment from Olympus’ leaders to both
our stakeholders and employees. Having a target will also
help us enhance our diversity, equity and inclusion strategy,
which is important for ensuring a safe and sustainable
workplace. To reach our target, we have set a minimum of
25% of all new employees as women graduates in Japan,
and we have launched a number of programs to create
networks and dedicated teams (for example, in R&D) todevelop future women leaders. In terms of governance, we
now have two women on the Board of Directors out of the
13 members, and I am confident that this number will
steadily rise in the coming years.

New Company Strategy and the Three Guiding Principles
The corporate strategy overseen by Yasuo Takeuchi has
been a huge success, doubling our adjusted operating
margin from below 10% to 20%. However, beyond financial
targets, we have made significant cultural progress by
successfully divesting our Imaging Business and Scientific
Solutions Business, so our transformation from an opticalequipment manufacturer to a pure MedTech player is anachievement that we should all be proud of. We have also
globalized and diversified the Board of Directors, which wasformerly made up mostly of Japanese members before
2019, so that we are now a leader in Japan and on par withother MedTech companies and global players in terms ofgovernance. Furthermore, half of the senior management
team, our 60 leaders, are non-Japanese, reflecting our global
models’ high level of unity and willingness to collaborate inorder to fulfill Our Purpose. Another achievement has been
increased efficiency, with the SG&A ratio falling below 50%
from 55% in fiscal year 2019, despite working in a variety ofchallenging macroeconomic and macropolitical environments
over the past three to four years. Overcoming thesechallenges, meeting financial targets, and transforming thecompany to a new level demonstrates that the corporate
strategy was perhaps the greatest success story in our longand fruitful 100-year history.
I would like to now discuss our new company strategy,
which introduces the Three Guiding Principles. First, “Patient
Safety and Sustainability” entails developing a patient safety
mindset and adjusting our operating model, processes, andsystems in order to become a leading global MedTech
company. Second, “Innovation for Growth” refers to not only
the need to innovate and develop products but to be moreinnovative and creative, and to take bolder calculated risks
as a company, while working more closely with ourcustomers to create commercial models and offerings.
Third, “Productivity” is the fuel for innovation and we arebuilding a high performing organization focused on patient
safety and product quality while ensuring simplicity andoperational efficiency. We have also established four
strategic value pools that will drive our long-term sustainablegrowth and create value for our customers and society:Business and Global Expansion, Strategic M&A, Care
Pathway Enhancement, and Intelligent Endoscopy
Ecosystem. The Three Guiding Principles and the four value
pools are deeply connected and help facilitate andaccelerate each other, which is the beauty of the newcompany strategy. Strategic M&A, for example, is part ofInnovation for Growth because we cannot develop
everything in-house and must occasionally look outside for
products and solutions to expand our portfolio and fill unmet
customer needs. Finally, our resource allocation andinvestment priorities remain unchanged from the corporate
strategy, with GI, Urology, and Respiratory as focus areas.

Our new company strategy sets a target of revenue
growth CAGR of around 5% over the next three years.
Given our QARA transformation efforts and renewed patient
safety initiatives, investing approximately ¥60 billion in QARA
over that timeframe means that resources allocated to someof our innovation and R&D projects will be impacted, andconsidering the current level of global macroeconomic andmacropolitical instability, I believe this target is reasonable
and will require significant commitment to achieve. However,I am confident that after we have successfully transformed
Olympus to reach the next level of maturity as a leading
global MedTech company, our growth potential will besignificantly higher, and we will be able to grow our revenue
at a rate greater than 5% CAGR while improving ouroperating margin.
I also believe that our capital allocation policy is morethan appropriate for Olympus to become a leading global
MedTech company. Our first priority is to invest in innovation,
the business, and M&A. The second priority is to continue
increasing the dividend gradually, as we have done hitherto.
After securing sufficient liquidity on hand for working
capital and investment, we will consider additional
repurchasing of our shares if there are surplus funds.
Although we expect this policy to remain unchanged for the
next few years, we need to improve how we communicate
the criteria for whether or not to repurchase our shares,
while also keeping in mind that M&A opportunities can bedifficult to plan for, and that the more demanding andchallenging macroeconomic environment will likely cause
Olympus and other companies to hold more cash surplus
than in previous years. While I recognize and appreciatethat capital markets have high expectations of Olympus’
growth potential in the next two to three years, we must be
realistic and focus on QARA transformation and invest for
future growth. Our capital allocation policy is intended tomake Olympus more sustainable while also providing
shareholders with the best possible return, and I continue
to believe that if we accomplish our growth targets outlined
in our new company strategy, the returns to shareholders
will be larger than if we channel future investments into
paying higher dividends.
Olympus has proven in the last three years that it candeliver on its commitments while also creating value forstakeholders. As the new CEO, I will make certain that thistrend continues. Despite facing challenges, we are fullycommitted to becoming a leading global MedTech company
that is recognized by all our stakeholders for its innovative
products and people. I am confident that Olympus has abright and promising future ahead, and we are working
extremely hard to justify the trust that has been placed in us
over the years.

05

Contents

1

Our
Company2

OurStrategyThis chapter gives an overview of thepast and present of Olympus, as well as
our vision for the future.

This chapter describes the contents ofour company strategy towardsustainable growth.

10	Roundtable Discussion with the Chairperson of
the Board, Executive Chairperson, and CEO
16 Initiatives for Patient Safety and Growth
18 Value Creation Model
20	Steps toward Becoming a Truly Global
MedTech Company
22 Overview
28 Message from the CFO
30 Messages from Executive Officers

36
38
42
46
50
52
54
56
58
60
62
64
66
68
70
72
77
78
81

Our New Company Strategy
ESG Strategy
Global Healthcare Data
Overview and Direction of Medical BusinessEndoscopic Solutions Business
Therapeutic Solutions Business
Customer Voices
Infection Prevention
Innovation
Intellectual Property Activities
Medical Business Strategy: Chinese Market
Medical Business Strategy: Asian Emerging Markets
Strategic M&A
Care Pathway Enhancement
Intelligent Endoscopy Ecosystem
Evolving Our Corporate Culture
Activities to Improve Productivity
Carbon Neutral Society and Circular Economy
Responsible Supply Chain

Theme of Integrated Report 2023
In May 2023, Olympus announced its new company strategy, “Leading as a global MedTech company.” In our company strategy,
we have set three priorities as guiding principles to achieve “Making people’s lives healthier, safer, and more fulfilling,” as stated in
Our Purpose: “Patient safety and sustainability,” Innovation for growth,” and “Productivity.” With patient safety as our top priority inthis new strategy, we will aim to become a global MedTech company that is recognized the quality, value and innovation of ourpeople and products. Integrated Report 2023 introduces the progress of our transformation, including a track record of our
improvement in business performance and initiatives to date, with thoughts from management, employees, and voices of healthcare
professionals. We have also expanded our information disclosure in line with the four strategic value pools that drive long-termsustainable growth introduced in our company strategy: 1) Business and Global Expansion, 2) Strategic M&A, 3) Care Pathway
Enhancement, and 4) Intelligent Endoscopy Ecosystem.

Major New Contents(Includes pages with significantly updated content from Integrated Report 2022)

Message from the CEO

P.02

A message from Mr. Stefan Kaufmann, who took over as CEO in
April 2023, on the next steps in the transformation to become aleading global MedTech company.

Roundtable Discussion with the Chairperson of
the Board, Executive Chairperson, and CEO

Initiatives for Patient Safety and Growth

3

Our
Setup

Corporate GovernanceDirectors
Compliance
Communication with Shareholders and Investors
Risk Management

P.16

Information on our product quality and safety initiatives, the QARA
structure, and messages from the CQO and the Chairperson of
the QA&RA Committee.

Messages from Executive Officers

84
96
99
100
101

P.10

With Our Purpose and patient safety as top priorities, Chairpersonof the Board Mr. Fujita, Executive Chairperson Mr. Takeuchi, andCEO Mr. Kaufmann held a roundtable discussion on what theexecutive team and the Board of Directors are working on andhow they are cooperating to take the next steps toward Olympus
becoming a leading global MedTech company.

P.30

Introducing messages from our executive officers regarding theirrole, initiatives, and enthusiasm for realizing Our Purpose under
the new organizational structure from April 2023 and the newcompany strategy.

Our New Company Strategy

P.36

Disclosing our Guiding Principles, FY2024–FY2026 financial
guidance, and approach to capital allocation in the new company
strategy announced in May 2023.

This chapter describes corporate governance,
which provides the foundation for improving
corporate value over the medium to long term.

DATA SECTION

104 10-Year Financial/Non-financial Data
106 Corporate Information/Stock Information

Editorial Policy
The Olympus Group strives to conduct disclosure in a manner that meets the informationneeds of its stakeholders. Starting in fiscal year 2018, its annual reports are being compiled
as an integrated report. With the foremost aim of deepening understanding with regard to
the Olympus Group, this report contains the corporate strategy, business activity, financial,and other information traditionally disclosed in our annual reports while also including
non-financial information on social contribution, environmental, and other activities
necessary to explaining the Group’s efforts to create value. In constructing this year’s
report, we referenced the International Integrated Reporting Framework of the International
Integrated Reporting Council (IIRC). The Company’s corporate website provides up-to-date
information on a variety of topics.

ESG Strategy

P.38

Explanation of the six ESG focus areas and materiality topics
with top priorities outlined in the new company strategy.
P.54
Customer Voices
Introducing comments from healthcare professionals on
ENDOCUFF VISION, a GI-Endotherapy device, and iTind, atherapeutic device used in urology.

Innovation

P.58

Disclosing our approach and strategy regarding R&D activities.

Medical Business Strategy:
Asian Emerging Markets

P.64

Following China s lead, introducing our support for the trainingof endoscopists and contribution to strengthening medical
infrastructure in Asian emerging markets, where it isconceivable that the spread of medical devices will rapidly
advance in the years to come.

Care Pathway Enhancement

P.68

Explaining the enhancement of the care pathway from early
detection and diagnosis, staging, treatment, and postprocedure using colorectal cancer, benign prostatic
hyperplasia, and lung cancer as examples.

Intelligent Endoscopy Ecosystem

P.70

Introducing our unique pursuit of solutions to healthcare
challenges through the use of digital technologies such as AI.

Reporting Period
Fiscal year ended March 31, 2023 (FY2023): April 1, 2022 to March 31, 2023
Certain contents include activities occurring in or after April 2023. FY refers to the fiscal
year of each display year.
Forward-Looking Statements
This integrated report contains forward-looking statements that reflect management’s
current views, plans, and expectations based on information available at the time of
preparation. These forward-looking statements are not guarantees of future performanceand involve known and unknown risks, uncertainties, future business decisions, and otherinternal and external factors that may cause the Company’s actual results, performance,
achievements, or financial position to be materially different from any future results
expressed or implied by these forward-looking statements.
About ProductsSome products in the Integrated Report have not yet been released in some regions.

06

Olympus Integrated Report 2023

07

1
Our
Company
This chapter looks back on Olympus’ 100-year history andprovides a business overview and Olympus’ competitive
advantages. In addition, Chairperson of the Board Mr. Fujita,
Executive Chairperson Mr. Takeuchi, and CEO Mr. Kaufmannheld a roundtable discussion on the next steps toward Olympus
becoming a leading global MedTech company.
This chapter also introduces initiatives for patient safety andgrowth and messages from each executive officer.

Contents
10	Roundtable Discussion with the Chairperson of the Board,
Executive Chairperson, and CEO
16 Initiatives for Patient Safety and Growth
18 Value Creation Model
20 Steps toward Becoming a Truly Global MedTech Company
22 Overview
28 Message from the CFO
30 Messages from Executive Officers

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Olympus Integrated Report 2023

09

Chapter 01

Our Company

Roundtable Discussion with the Chairperson of the Board,
Executive Chairperson, and CEO

Towards the Next Step in
Becoming a Leading Global MedTech
Company with Our Purpose andPatient Safety Mindset
In addition to reviewing the past four years of implementing Transform Olympus andits corporate strategy, the Chairperson of the Board, Executive Chairperson, andCEO discussed the new company strategy and the future of Olympus.

Thinking Behind the CEO Change
Takeuchi: The decision to change CEO in April 2023
was to coincide with the new company strategy
announced in May 2023, which succeeds theprevious corporate strategy introduced in 2019. I was
CEO at the time we started Transform Olympus andmy biggest mission was to transform the company
into becoming a truly global leading MedTech

company. Around 2021, I worked closely with Stefan
to think about the next step in the development of
the Company. I knew that this transition would require
a new strategy and new leadership. So, while wehave successfully transformed into a pure MedTech
company over these last four years, this is only the
first step.
Fujita: In terms of the nomination process, Mr.
Takeuchi informed the Nominating Committee of his

intention to step down as CEO. The Nominating
Committee started to deliberate about who would be
the most appropriate successor, both taking into
account Mr. Takeuchi’s recommendations andfollowing our succession plan which was already inplace. After having several interviews and discussions
within the Committee, we unanimously elected Mr.
Kaufmann to be our new CEO.
Kaufmann: There is a robust process behind the CEO
nomination process. We are a company with aNominating Committee, etc., and we see succession
planning as one of the most important components of
the Nominating Committee. Yas (Takeuchi) and I had
earnest discussions about putting me forward as anominee. When I was chosen, I felt really proud andhumbled. Of course, I also had many questions
because I was suddenly entrusted with the
responsibilities of the position. I was also proud of
Olympus in taking this bold decision which shows how
far we have come under the leadership of Yas toglobalize Olympus and to build the foundation for longterm, sustainable growth.

Formulating the New Company
Strategy Based on the Strong Relationshipbetween the Executive Team and theBoard of Directors
Kaufmann: I wanted to change the strategy
formulation approach in two ways from the previous
process. First, I wanted a stronger involvement fromas many people as possible in developing the strategy,
so we asked for input from many of our senior leaders
and talents. We did this through workshops andinspiration sessions across the Company.
Simultaneously, we started to cultivate a change inmindset to encourage buy-in toward the new strategic
direction and execution, and I think that process was
successful. The second change was to simplify the
new company strategy and make it easier tounderstand by aligning the various divisional,
functional, and corporate strategies. I wanted a morestreamlined version of the strategy rather than a long
book, so it would be an easier read that clearly setsout our priorities and KPIs to ensure that our whole

Director,
Representative Executive Officer,
Executive Chairperson and ESG Officer

Yasuo Takeuchi
Director,
Representative Executive Officer,
President and Chief Executive Officer

Stefan Kaufmann

Outside Director(Chairperson of the Board/
Chairperson of the Nominating Committee)

Sumitaka Fujita

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Olympus Integrated Report 2023

11

Chapter 01

Our Company

Roundtable Discussion with the Chairperson of the Board,
Executive Chairperson, and CEO

organization is steering in the same direction.
Takeuchi: To add to what Stefan said, we formulated
the 2019 corporate strategy with the involvement of justfive executive officers, including Stefan and myself. My
focus was on deciding the corporate direction of
Olympus, so the strategy was considered anddeveloped after establishing Transform Olympus basedon our aspiration to become a leading global MedTech
company. As for the new company strategy, thecorporate direction was not changed, so Stefan has
been able to focus on what becoming a leading global
MedTech company means for Olympus. As hementioned, Stefan engaged with many of our people, andhe substantiated many elements from the 2019 corporate
strategy in developing the new company strategy.
Fujita: The corporate direction remains the same,
however, the degree of Board participation anddiscussion for the new strategy was increased. For
example, in addition to regular Board meetings, we also
held special discussions for strategy. In special strategy
discussions especially, we focused on how to remediate
issues raised by regulators; this has advanced thequality of our Board discussions in connection withquality assurance and regulatory affairs (QARA) related
issues. We also held an outside directors’ meeting on
how to deal with QARA-related issues moving forward.
In addition, we decided to form a Quality Assurance
and Regulatory Affairs (QA&RA) Committee. Other
topics we have discussed included growth strategy(M&A and market policy for the Endoscopic Solutions
Division and Therapeutic Solutions Division), R&D policy(including resource availability), financial planning(suitability of revenue levels, SG&A expenses, operating
profit level, etc.), tax management, capital allocation(share buyback policy and investment in M&A andR&D), and clarifying the link between the current fiscal
year plan and multi-year plan.
Kaufmann: The discussions the executive team hadwith the Board of Directors about the new company
strategy shows how constructively both sides arecooperating with each other in the best interests of theCompany. The Nominating Committee has consistently
worked on the Board of Directors’ skills matrix to makesure that Board members can support our efforts tobecome a leading global MedTech company. We havevery engaging discussions with the Board who provide
qualified feedback, appropriate challenges, and mostimportantly, a lot of support. I consider our discussions
on the new company strategy a great example of how
much Olympus’ corporate governance has evolved
over the last four to five years.

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Olympus Integrated Report 2023

Strengthening QARA and Evolving as a
Culture Led by Patient Safety
Kaufmann: We started the process to improve ourquality management system a few years ago. However,
we must make further progress to reach the level thatis required as a global MedTech company. The situationthat we are in today in connection with the three FDA
warning letters we received in fiscal year 2023 is an
opportunity for us all to recognize there is room toimprove our corporate culture, processes, and systems
to meet the expectations of regulators andstakeholders. To strengthen QARA, we have built
capabilities in our organization that will enable us toproactively handle ongoing issues, which go beyond
remediating regulatory issues. Our corporate culture ischanging to one where patient safety is always our top
priority and everyone has the mindset to maintain highquality; this change will enable us to tackle the root
causes of QARA-related issues and support efforts tofulfill our obligations. I also see this cultural shift as ahuge opportunity for Olympus to become a more agileorganization that can provide even more value than thepast and elevate us to the next level as a global
MedTech company.
Takeuchi: When we embarked on the Transform
Olympus journey, we also had to change Olympus’
culture because we were by nature a tech-driven
company rather than a MedTech company. Our culture
and mindset as a MedTech company needs to befurther strengthened in order to take action to address
QARA-related issues and regulations. We arecontinuing our efforts to ensure all our employees
clearly understand what it means to be a patient safetyoriented company so that we can more proactively
identify and address issues. Stefan made an importantdeclaration by prioritizing patient safety in the newcompany strategy.
Fujita: From the Board of Directors’ viewpoint, wehave always taken patient safety very seriously. For
example, we have been discussing Olympus’ QARA
function and areas for improvements with the executive
team; however, after receiving three warning letters,
QARA-related discussions became a top priority in our
Board discussions, including in Executive Sessions*1,
quarterly Opinion Exchange Meetings for outside
directors, and when evaluating the effectiveness of theBoard. We established the QA&RA Committee tosupport the executive team. This Committee wasformed with outside directors Mr. Gary John Pruden
and Mr. Jimmy C. Beasley*2. All the members have

QARA expertise and experience, and the Committee
has proven to be effective.
Kaufmann: To add to what Mr. Fujita said, the QA&RA
Committee is working with the executive team. First,
having gradually strengthened the skills and capabilitiesof our Board, the Committee has been able to provide
relevant advice and support the executive team.
Second, the Committee gives the Board an opportunity
to reach out to the executive team for the latest
information on the remediation and transformation
efforts, providing the Board with further transparency. I
have attended all the QA&RA Committee meetings,
and it reinforced the importance of the decision to set
up the Committee because I can see how the executive
team benefits from the experiences of Board members
who have gone through similar QARA situations.
Fujita: I agree with Mr. Kaufmann about Olympus
strengthening the skills and capabilities of the Board.
One recent development is the appointment of Dr.
Luann Marie Pendy to the Board, who will bring QARA
expertise and experience to the QA&RA Committee. As
the Nominating Committee, we always analyze thebalance in the composition of the Board, as well as its
sustainability by considering the skills matrix anddiversity.
Takeuchi: Every year since the Nominating Committee
was founded, we have discussed what skills are to beenhanced and the need to incorporate them into theBoard structure. Since last fiscal year, we see
expanding quality management skills as the highest
priority area of the skills matrix if we are to become aleading global MedTech company.
*1	Executive Session is held after every Board of Directors’ meeting where only
outside directors participate.
*2	As of October 2023, the members of the QA&RA Committee are Mr. Gary John
Pruden, Mr. Jimmy C. Beasley, and Dr. Luann Marie Pendy.

Improving the Effectiveness of theBoard of Directors
Takeuchi: Corporate governance is made possible byeffective team collaboration between the executive
team and the Board of Directors. The executive teamfocuses on managing the Company while the Board of
Directors advises, supports, and monitors theexecutive team. Without an effective executive team,
you cannot help the Board of Directors be effective.
When I was CEO, I wanted to create such a
collaborative environment, and this led to the change
in Olympus’ governance structure from a traditional
Japanese structure to a company with a Nominating

Under our new CEO’s leadership,
Olympus will continue in its
efforts to become a leading
global MedTech company.
Sumitaka Fujita

Committee, etc. By changing this structure, we havefurther strengthened the collaboration between theexecutive team and the Board of Directors, thus
improving the effectiveness of both the executive teamand the Board of Directors. One of Olympus’ strengths
is the strong relationship between the Board of
Directors and the executive team in terms of thecorporate direction.
Fujita: The scandal in 2011 made Olympus’ executive
team and the Board of Directors very aware of theimportance of governance and this mindset makes
Olympus stand out from other companies. After Mr.
Takeuchi introduced Transform Olympus in 2019, wechanged our governance structure to a company witha Nominating Committee, etc. The purpose is toseparate execution and monitoring, which has
strengthened execution and sped up decision-making
for the executive team and focused on the monitoring
for the Board. We also have Executive Sessions after
each Board meeting where only outside directors
participate and we discuss management issues, which
are then shared with the top executive. As Mr.
Takeuchi mentioned, there is strong collaboration

13

Chapter 01

Our Company

Roundtable Discussion with the Chairperson of the Board,
Executive Chairperson, and CEO

Becoming a leading
global MedTech company
which is respected by
all of our stakeholders
while ensuring
patient safety as thehighest priority.
Stefan Kaufmannbetween the executive team and the Board and there
is a clear understanding of the duties on both sides. I
am also very appreciative of Mr. Kaufmann for
introducing optimization of agendas and time savings
to allow the Board members to focus on strategicallyimportant topics in the Board meetings. Moving
forward, I wish to continue our good teamwork andsee leadership from Mr. Kaufmann as he executes the
new company strategy towards the goal to become aleading global MedTech company in line with Our
Purpose while prioritizing patient safety.
Kaufmann: Over the last couple of years, the Boardof Directors has established a healthy routine. At every
Board meeting, they discuss not only the important
corporate priorities, but also conduct a selfassessment, looking for further opportunities to

14

Olympus Integrated Report 2023

improve Board effectiveness. A couple of topics havebeen on the agenda that could benefit the relationshipbetween the executive team and the Board. First, theBoard of Directors can only be effective if members
understand the realities of the Company. So, in the first
60 minutes of each Board meeting, I share insights
into the current opportunities and challenges we face,
as well as what we see coming up. We engage in an
open discussion, and I feel that the Board appreciates
this as it helps them to better understand what we aregoing through from the executive perspective. Second,
the Board members have busy schedules, so we alignon the critical strategic and governance topics todiscuss in advance. I propose to the Board the areas
which are closely related to our strategic priorities that
we need to discuss at certain moments during thecourse of the year, which includes governance-related
topics. In this way, the executive side has become very
forward-looking in terms of the agendas it wants toshare and discuss with the Board and for the Board
members to understand how the agenda items arelinked to our strategic priorities. For other topics, weeither put them in writing or have brief discussions sothat we can allocate our Board members’ time to themost crucial areas.
Takeuchi: As Mr. Fujita pointed out, one purpose ofchanging the traditional governance structure to acompany with a Nominating Committee, etc. was toaccelerate management action by shifting thedecision-making responsibility from the Board to the
executive team. Regular report of the executive teamto the Board members is an effective way to share thechallenges of management and issues faced byexecutive officers, and the support they require fromthe Board. During my tenure as CEO, I tweaked thisreporting system and also conducted executive
discussions with only outside directors based on theissues raised. Since Stefan has become CEO, he hascontinued to make huge advancements such as
spending the first hour of the Board meeting providing
updates on the latest situation. I think this is anincremental and natural development of thecollaboration between the executive team and theBoard of Directors to improve the effectiveness of theBoard.

New CEO’s Approach to
Corporate GovernanceKaufmann: I became a director in June 2019 and thefirst year was a big learning experience for me since I

was inexperienced in being a director for a Japanesecompany. I spent a lot of time learning andunderstanding how governance in Japan and othercompanies work, and how Olympus approaches
governance. Yas and Mr. Fujita encouraged me toparticipate in the governance transformation processfrom the start and, like all directors, I contributed togovernance-related discussions including theself-assessment of the Board and self-regulation of theCompany. When I became CEO in April 2023, myperspective of Olympus and corporate governancecompletely changed because, shifting my role, I was
suddenly communicating with all of our stakeholders
and receiving input from external sources on how
Olympus was perceived. As CEO, I have the unique
responsibility to look after all the opportunities, issues,and challenges facing Olympus. In terms of building a
relationship with the Board, I have been on the Boardfor the last four years and I have been cooperatingwith our outside directors for a long time. Since
becoming CEO, I have been looking to further
strengthen relationships by engaging with all the
directors both collectively and individually and having
open and honest discussions. What I have come togreatly appreciate about the Board is its wealth ofexperience, capability, and wisdom, and I feel fortunate
to be able to engage the directors as strategic
advisors. There were not many opportunities for the
Board to meet in person during COVID-19, and now I
would like to create opportunities for our Board
members to be involved more in our day-to-day
business and meet more of our junior managers andtalents to get better insights into the realities of ourCompany and the issues that we face.

we embark on the next stage of transformation and I
believe that there is still plenty of room to realize huge
potential from Olympus.
Takeuchi: There is huge potential for Olympus which I
have seen over my long career at the Company; thispotential was a catalyst for Transform Olympus. I think
we have done well following this transformational
direction over the last four years. This has laid thefoundation for the Company’s growth into the future asa global MedTech company. That being said, we have
only completed the first chapter of Olympus’ next 100
years. The real change, the challenges andopportunities that come with it, starts now.
Fujita: Under our new CEO Mr. Kaufmann’s leadershipand with Our Purpose and patient safety mindset,
Olympus will continue in its efforts to become a leading
global MedTech company by executing the newcompany strategy. To meet our ambitions, the Board
will continue to strengthen its effectiveness andcontributions to enhance corporate value.

Entering the Next Phase of
Transformation to Become a
Leading Global MedTech Company
Kaufmann: Over the last four years, under theleadership of Yas, Olympus has undergone an amazing
transformation and entered the next phase oftransformation to become a leading global MedTech
company. We are now at a point where we want to berecognized by all our stakeholders as a Company thatis known for its innovation, product solutions, andpeople while ensuring patient safety as the highest
priority. We must now guide our culture to further put
patient safety at the center and adopt a quality-firstmindset. I am committed to modeling this culture as

We have done well following
Transform Olympus over thelast four years, but we have only
completed the first chapter of
Olympus’ next 100 years.
Yasuo Takeuchi

15Chapter 01

Our Company

ESG focus
areas

2

Initiatives for Patient Safety and Growth

QARA Investments for Patient Safety and
Our Future Growth

QARA Structure
General Meeting of Shareholders
Election/Dismissal

Compensation
Committee

Audit
Committee

 evelop a robust organization and supportingD
processes to ensure consistent execution of
Quality System requirements, quality
improvements, identification and resolution ofcompliance risks
Integrate Quality Engineering and Quality
Leadership organizations globally across all
three regions, manufacturing plants, repair anddistribution centers

CQO’s Message

Pierre Boisier
Executive Officer andChief Quality Officer

16

Olympus Integrated Report 2023

assurance and regulatory affairs (QARA) organization is being
built to support this effort and to make sure processes are
adopted consistently and globally across manufacturing,
repair and distribution centers.
In addition, we have established the Quality Assurance
and Reguratory Affairs (QA&RA) Committee, which ensures
we live up to our patient safety aspirations and diligently
respond to regulators and fulfill our commitments. We willcontinue to invest in patient safety and our business’ growth,which are fundamental to our organization’s long-termsustainability.
Execute Transformation with the Aim of aSingle Global Quality System andFully Harmonized Processes

Enhance Global Quality andCompliance Functions to Ensure
Consistent Execution

Quality Assurance and Regulatory
Affairs (QA&RA) Committee

Monitoring function
Monitor

Nothing is more important to Olympus than patient safety.
The situation that we are in today is an opportunity for us all
to recognize that we must fundamentally improve our quality
and regulatory systems. We take this challenge extremely
seriously and are working tirelessly on structural and culturalchanges to meet the regulators’ expectations, and thisremains the Company’s highest priority.
We have already started with significant investments andcommitments to transform Olympus’ quality management
processes into a consistent global system for both patient
safety and quality management. A right-sized quality	Establishment of voluntary QA&RA
Committee	Added quality indicators to theevaluation index of executive officers’
compensation

Board of Directors

Nominating
Committee

Commitment to Product Quality and Safety

Efforts in the Monitoring Function

Election/Dismissal

 uild and implement a Single Global Quality System
BDevelop streamlined digitally-enabled processes tosupport the global execution of the Quality System,
including Complaint Management & MDR, Process
Validation, Design Controls, Management Review,
Internal Audit, Regulatory Commitment Tracking, etc.

Resolve Compliance Issues andComplete Remediation
 nsure all commitments to regulators are implemented on
Etime meeting regulator’s expectations

To strengthen QARA, we have established an independent worldwide quality and regulatory organizational
structure where the Chief Quality Officer (CQO) oversees the activities and reports directly to the CEO. After I
joined Olympus, we analyzed the skill sets and talent of the people in the QARA department. From theresults, we created a QARA organization plan that could implement the functions within a unified global
quality management system.
Based on this new QARA organization plan, we addressed skill set and knowledge needs in quality
and regulatory compliance by continuing to hire MedTech leaders with expertise in areas such ascomplaint handling, regulatory affairs, product quality, and compliance. Keeping up with the latest
regulatory interpretations is also very important for us and it is essential to have the right skilled people
and foster talent. I think we have built a very good foundation with the senior team and we are now readyto move forward to build a globally coherent quality mindset that ensures patient safety as our top priority.
Our design assurance (quality side of R&D) team is set up to make sure that we design products
consistent with applicable regulations and meet the demands of regulators. Our R&D is mostly in Japanand our design assurance team works very closely with these Japanese R&D teams. Their collaborationis getting better and they are designing products within applicable global regulatory guidelines. We arefocusing on bringing the quality management system to a global standard. We are unifying our quality
management system to consolidate requirements for critical processes ensuring that relevant global
regulatory requirements are consistently met.
The entire company is working diligently to remediate the issues identified in the warning letters andtrying to prevent similar incidents from happening again. During this process, we are closely communicatingwith the regulatory authorities. Patient safety is our highest priority. I am confident that these efforts will help
our QARA become globally unified and enable Olympus to transform into a 100% global MedTech company.

Accounting Auditor

ReportExecution function
Internal
Audit

Representative Executive Officers
Executive Officers

Group Executive Committee

ReportFunctional Divisions,
Business Units,
Corporate Divisions, andGroup Companies

CTO, CMSO, andall other organizations

CQO

Function for global regulatory affairs, productregistration, and operation management
Function for establishment and management of
global quality organization and QMS
Function for establishment and management of
global QARA compliance and external regulatory
audit & response management
Function for global QARA strategic projects
management, etc.

Audit

Efforts in the Execution Function	Quality Transformation
	Remediation

Establishment of QA&RA Committee
We established a QA&RA Committee at
the Board of Directors in April 2023.
This is a voluntary committee composedof outside directors and related
functions such as QARA, R&D, Legal,
and Supply Chain will report monthly atthis Committee. The Committee
oversees and provides advice for thedevelopment of global quality
management systems to meet the
expectations of regulators and to ensurecompliance with relevant laws andregulations.

This Committee shall resolve or deliberate on the following matters and reportsuch matters to the Board of Directors as appropriate:

Activities

Members1) Oversight and advice on Company plans for the quality management system
as required of a global MedTech company, including the Management Review
process.
2) Oversight and advice on regulatory communication strategy and engagement.
3) Provide recommendations to management for resourcing and areas ofplanning and execution.
4) In addition to the above, monitor any significant resourcing requirements
outside of management plans and/or address any matters that have beenrequested by the Board of Directors with regard to QARA.
Outside Director, Gary John Pruden (Chairperson)
Outside Director, Jimmy C. BeasleyOutside Director, Luann Marie Pendy

Message from Chairperson of the QA&RA Committee

Gary John Pruden
Outside Director

Our Committee oversees the development and execution of Olympus’ QARA strategy to makesure we meet all regulatory standards required for a global MedTech company. Our aim is toenhance our global capabilities to make sure we avoid future regulatory challenges. Thus it isessential to remediate our processes, standards, and capabilities. The Committee will also review
and oversee root cause analysis, support the transformation of the corporate culture, and monitor
the establishment of a robust global quality management system.
I bring over 35 years of experience in global healthcare organizations with extensive knowledgeof the medical device industry, including quality management systems and regulatory affairs. My
fellow committee members, Mr. Beasley and Dr. Pendy, are also very experienced in quality andregulatory and bring a wealth of global medical device knowledge to their roles as outside
directors. We hope to make full use of our expertise to help oversee the transformation at Olympus
and provide advice where necessary. We will support Olympus’ transformation into a global
MedTech company where patient safety is our first priority and the focus of our entire organization.

17

Chapter 01

Our Company

Value Creation Model

Olympus’ Value Creation Model
OUR PURPOSE

Social Outcome

Making people’s lives healthier, safer
and more fulfilling

Providing value to patients, countries, regions, andsociety through care providers
Patients

StrategyStrength

Company Strategy

Strong position built on basis ofrelationships of trust with care providers	Global market share for gastrointestinal endoscopes
approximately 70%
	Training support for doctors conducted around the world	Entered emerging markets ahead of other companies
and built relationships of trust with doctors
	Have built relationships of trust in Chinese market for about
50 years, since normalization of diplomatic relations between
Japan and China in 1972	Established representative office in Singapore in 1975

Global and robust management foundation
	Approximately 17 training centers with the aim ofproviding training opportunities for healthcare professionals
	Build an industry-leading service network among
the world’s medical device companies	Established a global headquarters for the Therapeutic
Solutions Business in the U.S.
	Credit ratings: A+ (R&I), BBB+ (S&P), Baa2 (Moody’s)	Approximately 960 dialogues with institutional investors andsecurities analysts*1

Technological capabilities that produce
high-quality and advanced products	Selected as one of the top 100 most innovative companies
in the world 11 times
	Olympus Group’s approximately 16,000 patents*2 to build ahigh-quality IP portfolio	Strong know-how and optical technology built up since
the Company’s founding	Manufacturing techniques that realize high-mix,
low-volume production

Diverse human resources that possesshigh expertise	Aiming to become a global MedTech company, hiring
highly specialized and talented people for global positions
	To further grow mainly in the Therapeutic Solutions Business,
set up a specialized business development team in the U.S.,
hired talented people, and carried out M&A	To strengthen implementation skills, approximately 6,600
employees participated in training, and approximately 6,700
people participated in the Global Communication Skill
Strengthening Program*2

Leading as a global MedTech company

Olympus Integrated Report 2023

100

50

Diseases orconditions treated*3

millionColonoscopies
performed worldwide*4

Patient safety and sustainability
1 Resolve pending commitments to the FDA,
prove confidence with regulators

2 Lead in organization health and ESG

Innovation for growth
3 Strengthen the Olympus brand, elevate theexperience of our customers

4 Grow our business through purposeful
innovation and acquisitions

Productivity
5 Build a high performing organization focused eedback on productF
improvements andrequests

Care providers

Relationshipsof trust built bycollaboratingwith careprovidersProviding products that

 ontributing to the enhancement of the customer experience in the care pathway
Cfrom early detection and diagnosis to staging, treatment, and post procedure
Contributing to improvements in efficiency of medical care and its economic
outcomes through early diagnosis and minimally invasive treatments
Providing unique solutions to issues in the medical field

help improve patient
outcomes by meeting
abundant needs
Support for proceduredevelopment

Countries/Regions/Society

on patient safety and product quality

6 Ensure simplicity and operational efficiency

 ontributing to limiting medical expenses through early diagnosisCand minimally invasive treatments
Contributing to the future of medicine

Strategic value pools thatdrive long-term sustainable growthBusiness andGlobalExpansion

Financial KPIs

Care Pathway
Enhancement

Revenue Growth*5
Strategic M&A~5 %Intelligent
Endoscopy
Ecosystem

Materiality Topics at Olympus
Healthcare Access and Outcome
Compliance, Product Quality and Safety
Responsible Supply Chain
Healthy Organization
Carbon Neutral Society and Circular Economy
Corporate Governance
Details on the materiality topics at Olympus are on page 38

18

 ontributing to people’s health around theCworld by always giving the highest priority topatient safetyImproving patient outcomes by elevating thestandard of care in target diseases based onearly diagnosis and minimally invasive treatments

 rowth ofG
Endoscopic
Solutions
Business andTherapeutic
Solutions
Business

Endoscopic Solutions Division

Therapeutic Solutions Division

5%

TSD

ESD

> 5%

CAGR from FY2023

Operating Margin*6~ 20 %EPS Growth*6~8 %CAGR from FY2023*1 Fiscal year 2023
*2 As of March 2023. Excluding Scientific Solutions Business*3	Olympus has versatile medical devices with the ability to treat approximately 100 diseases or conditions as of March 2023.
*4	Numbers come from the Company’s research. Numbers for the U.S., Canada, Germany, France, Italy, Spain, the UK, Japan,
China, South Korea, Australia, India and Russia. As of 2019*5	Constant currency basis*6	Adjusted for extraordinary Items
Exclude “Other income / expenses”
No adjustment will be made for the impact of exchange rate fluctuations;actual exchange rate will be used

19

Chapter 01

Our Company

Steps toward Becoming a Truly Global MedTech Company

Becoming a Truly Global
MedTech Company

FY

In January 2019, Olympus announced its corporate transformation plan, Transform Olympus. In November ofthe same year, we announced our corporate strategy in which we presented our goal to achieve an adjusted
operating margin*1 of over 20% in fiscal year 2023, a level equivalent to that of global competitor MedTech
companies. We accelerated transformation to become a truly global MedTech company. In addition to sales
growth, we have achieved an adjusted operating margin of 20% in fiscal year 2023 due to steady
implementation of reducing costs and improving capital efficiency.

FY

2020

Adjusted
operating margin

FY(Result)

13.5%

2021

2022

(Result)

Adjusted
operating margin

14.1%

Initiatives and Priority Measures

Initiatives and Priority Measures

 chieved significant SG&A efficiency (¥32.5 billion reduction,Aor 7% decrease, from fiscal year 2019)
Steadily progressed the corporate transformation plan,
Transform Olympus
Broadened perspectives in management and accelerated
management action as a result of diversifying the Board of
Directors and migration to a company with a Nominating
Committee, etc.
Development of next-generation gastrointestinal endoscopy
system in the Endoscopic Solutions BusinessBuilt a business base for the Therapeutic Solutions Businessand invested resources in key focus areas
Integrated global group management, and strengthened
business execution
Established the globally integrated HR management thatenables optimal talent allocation at the global levelRecruited and placed human resources, regardless ofnationality, age, or gender, within the Olympus Group, andactively hired external personnel with a wide range ofexperience, knowledge, and abilities ade steady progress on the corporate transformation plan,
M
Transform Olympus
Formulated materiality items that moves us towardsustainable business growth and a sustainable societyCompleted the transfer of the Imaging Business to Japan
Industrial Partners, Inc. in January 2021
Launched the EVIS X1 advanced endoscopy system—
the first new model in about eight years—in Europe, Japan,
and some parts of Asia
Conducted multiple M&A to drive growth in the Medical
Business (GI endoscopy: Arc Medical Design Ltd.;
Orthopedic: FH ORTHO SAS; Surgical: Quest Photonic
Devices B.V.)
Reorganized the product development structure (a system inwhich specialized functions, such as quality, R&D andmanufacturing, strengthen their cooperation from the earlystage to develop products that are safer and more effective)Implemented “Career Support for External Opportunity” inJapan ontinued to foster a culture of corporate transformation byC
promoting top-down and bottom-up initiatives throughTransform Olympus, our corporate transformation planImplemented ESG initiatives that contribute to a sustainable
society (Selected as Dow Jones Sustainability World Index(DJSI World))
Decided to reorganize Scientific Solutions Business throughCompany Split and accelerated efforts to implement Company
Split. (In August 2022, Olympus decided to transfer all sharesof its subsidiary Evident Corporation, which is engaged with
the Scientific Solutions Business, to third party)
Expanded sales of EVIS X1 advanced endoscopy systemthrough launch execution in current markets
Established Olympus Innovation Ventures, a corporate venture
capital fundFormulated strategic initiatives for the Medical Business(Olympus Investor Day 2021)
To develop safer and more effective products, we
strengthened cross-functional collaboration among specialized
functions, such as QARA, R&D, and manufacturing from theearly stages of product development

Supporting Financial Indicators (Result)*2

Adjusted FCF growth
Adjusted ROIC
Adjusted EPS growth

Supporting Financial Indicators (Result)*2

Adjusted FCF
Adjusted ROIC
Adjusted EPS

20

Olympus Integrated Report 2023

Supporting Financial Indicators (Result)*2

71.1 billion
10.7%¥ 45.49¥

Adjusted FCF growth
Adjusted ROIC
Adjusted EPS growth

19.3%

11.6% (¥79.4 billion)
10.3%+ 37.2% (¥62.42)+

35.9% (¥131.3 billion)
17.1%+ 46.6% (¥97.73)+(Result)

20.0%
4.6%

Adjusted
operating margin

Initiatives and Priority Measures(Result)

Adjusted
operating margin

FY

2023

Revenue CAGR*3

Initiatives and Priority Measures	Further strengthened capabilities to respond to changes in theenvironment and all risks in both a flexible and timely manner	Continued to expand sales of EVIS X1 advanced endoscopy systemthrough launch execution in current markets and preparation oflaunch into new markets including the U.S. and China
	Launched surgical endoscopy system VISERA ELITE lll in Europe,
Japan, and some parts of Asia
	Explored and conducted multiple M&As to further strengthen
our core competencies and expand our portfolio (GI endoscopy:
Odin Vision; GI-Endotherapy: Taewoong Medical Co., Ltd.*1)	(Fiscal year 2024) Olympus transferred Evident Corporation, a
specified subsidiary of Olympus, to a special purpose company
indirectly owned by funds advised by Bain Capital Private Equity,
LP. The transfer was completed in April 2023

Supporting Financial Indicators (Result)*2

Adjusted FCF growth
Adjusted ROIC
Adjusted EPS growth

6.2% (¥85.3 billion)
18.4%+ 35.8% (¥113.86)+

Financial Guidance and Supporting Financial Indicatorsof Our Corporate Strategy in 2019*2
FY2023 Targets
Financial guidanceSupporting
financial indicators

Adjusted operating margin> 20 %

Adjusted FCF growth> 20 %*

Adjusted ROIC> 20 %

Adjusted EPS growth> 25 %*

4

4

Announced new company strategy (May 2023)
See page 36*1	The closing of the Taewoong Medical Co., Ltd. acquisition is not yet determined*2	The following adjustments made to each indicator. M&A relates to fiscal year 2020 and later (after the launch of our corporate strategy in 2019).
Adjusted Operating profit and EPS: Operating Profit excludes “Other income/expenses.” No adjustments are made for the impact of exchange rate fluctuations; actual exchange rates are used.
Adjusted ROIC: “Other income and other expenses” and “Depreciation and amortization of intangible fixed assets related to M&A” are deducted from operating profit after tax. (Tax rate: Japan’s statutory effective tax
rate of about 30% is used.) “M&A-related assets (goodwill and intangible assets related to M&A)” is deducted from working capital. No adjustments are made for the impact of exchange rate fluctuations, and actual
exchange rates are used.
Adjusted FCF: “Cash inflows and outflows of other income and other expenses,” “M&A-related expenditure,” and “Business restructuring-related expenditure” are deducted. No adjustments are made for the impact of
exchange rate fluctuations, and actual exchange rates are used.
*3 CAGR based on continuing operations adjusted for foreign exchange impacts over the three-year period starting in fiscal year 2020
*4 Three-year CAGR from fiscal year 2020

21

Our Company

Chapter 01

Overview

Our History
Revenue
Note:	Figures through FY2016, based on Japanese GAAP (JGAAP); Figures from FY2017
onward, based on IFRS	Figures for FY2020 and FY2021 represent the amount of continuing operations
excluding sales of the Imaging Business, and for FY2022 and FY2023 represent theamount of continuing operations excluding sales of the Scientific Solutions BusinessBusinesses outside the Medical Business
Medical Business

1991

1996

2001

2006

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

1919 –1950s

1960 –1980s

1990 – 20102011– 20152016 – 20182019 –

From the Founding of Olympus andthe Path to Business Modernization

Evolution as an Integrated Optical
Manufacturer and Expansion ofOverseas Sales Networks

Diversification of
Medical Business

Unveiled “Back to Basics”
Slogan and Began Shifting
Resources to Medical BusinessTransition from Stage of Reconstructing
Management to Stage of Sustainable
Growth and Development

Aiming to Become aTruly Global MedTech Company

1964 Established Olympus Europe
1968	
Established Olympus Corporation ofAmerica1979	
Established U.S. location in California(currently world’s largest endoscope service
center)1989	
Established Beijing residential office andcorporation in Singapore

2001	
Commenced collaboration with Terumo
Corporation
2008	
Established first training center in China(Shanghai)	Acquired Gyrus Group PLC to strengthen
surgical area of Medical Business2011	
Deferred recording of past losses discovered
2012	Appointed new management team	Formed business and capital alliance withSony Corporation
	Transferred Information & Communication
Business2013	Security on Alert Designation placed on
Company stock by TSE removed
	Procured capital through public offeringin overseas markets (approx. ¥110 billion)

2016 Increased production capacity (completed
construction of new buildings) at medical
endoscope development and production
sites (Aizu, Shirakawa, and Aomori)2018 Introduced new corporate philosophy

2019	
Announced corporate transformation plan,
Transform Olympus and corporate strategy
2021	Transferred Imaging Business	Acquired Quest Photonic Devices B.V.
in the Netherlands and Medi-Tate Ltd. in Israel
Announced medical business direction
2022	Acquired Odin Medical Ltd. in the UK
2023	Transferred Scientific Solutions BusinessAnnounced company strategy

1919	
Established as Takachiho Seisakusho tomanufacture microscopes in Japan
1921 Registered trademark as Olympus
1936	
Introduced Olympus’ first camera, theSemi-Olympus I (entry into camera
business)
1949	Name changed to Olympus Optical Co.,
Ltd. Company listed on Tokyo Stock
Exchange (TSE)Business Portfolio Changes

1975
MedicalBusiness

1972
1968
1966

Read the history of the Medical Business here.
https://www.olympus-global.com/ir/data/
medical.html

1950

Surgical Endoscope (1975–now)

Began selling of laparoscopes from the W&I

Urology (1972–now)

Launch of KF nephrofiberscope and development of CYS-K1 rigid cystoscope

Respiratory (1968–now)

Launch of BF-5B, 4B and 3A bronchofiberscope

GI-Endotherapy (1966–now)

Launch of biopsy scope and endotherapy devices (biopsy forceps/cytology brushes)

Gastrointestinal Endoscope (1950–now)

Development of world’s first practical gastrocamera

2010
2005

Scientific
Solutions
Business

1930
1920

1970

Development of the ACA automatic biochemical analysis system

1968

Launch of IFS industrial fiberscope

Analysis system (1970–2009)
Industrial Videoscope (1968–2023)
Industrial Microscope (1930–2023)
Biological Microscopes (1920–2023)

Launch of Asahi microscope

1992
1969
1936

Binoculars (1992–2021)

Launch of four models of two types of binoculars

Recorder (1969–2021)

Development of ZUIKO PEARLCORDER microcassette tape recorder

Camera (1936–2021)

Launch of Semi-Olympus I camera

2004
Others1987
1985

Olympus Integrated Report 2023

X-Ray Fluorescence (XRF) Analyzer (2010–2023)
Non-Destructive Testing Instrument (2005–2023)

Acquired R/D Tech Inc. in Canada

Launch of MC industrial microscope

Imaging
Business

22

Innov-X Systems, Inc. in the U.S. becomes consolidated subsidiary

Development of MODEL ME-D5010E

Development of CIE-3000

ITX becomes consolidated

subsidiary

Information & Communication (2004–2012)
Magneto-optical disk (1987–2005)
Printer (1985–2011)23

Our Company

Chapter 01

Overview

At a Glance

Medical BusinessEndoscopic
Solutions Business

Others

Revenue¥

Operating Profit

Operating Margin551.8 billion ¥ 152.8 billion 27.7%

In its Endoscopic Solutions Business, Olympus uses innovative capabilities in medical technology, therapeutic intervention andprecision manufacturing to help healthcare professionals deliver diagnostic, therapeutic and minimally invasive procedures toimprove clinical outcomes, reduce overall costs and enhance the quality of life for patients and their safety. Starting with theworld’s first gastrocamera in 1950, Olympus’ Endoscopic Solutions portfolio has grown to include endoscopes, laparoscopes,
and video imaging systems, as well as system integration solutions and medical services.

Other
Therapeutic
Areas
Respiratory

FY2023
Consolidated Revenue*

Urology¥

Therapeutic
Solutions Business

Gastrointestinal
Endoscope

Revenue¥318.2 billion

Operating Profit¥

63.7 billion

Operating Margin

20.0%

In its Therapeutic Solutions Business, Olympus uses innovative capabilities in medical technology, therapeutic intervention, andprecision manufacturing to help healthcare professionals deliver diagnostic, therapeutic, and minimally invasive procedures toimprove clinical outcomes, reduce overall costs, and enhance the quality of life for patients and their safety. Starting with its early
contributions to the development of the polypectomy snare, Olympus’ Therapeutic Solutions portfolio has grown to include anarray of surgical energy devices and a wide range of instruments to help prevent, detect, and treat disease.

881.9 billion*The figure represents continuing operations.

GI-Endotherapy
Revenue

OthersSurgicalEndoscope

Therapeutic
Solutions Business

36 %GI-Endotherapy

Approx. 30%

Urology

Approx. 35%

Respiratory

Approx. 15%

Other
Therapeutic
Areas

Approx. 20%

Japan¥122.5 billion(13.9%)

24

63%

Gastrointestinal
Endoscope

Approx. 55%

SurgicalEndoscope

Approx. 10%

Medical Service

Approx. 30%

Two values Olympus offers

Early
Diagnosis

 y incorporating technology aimed at improving the quality of lesion detection, diagnosis, and treatment,B
as well as examination efficiency, gastrointestinal endoscopes, which are one of Olympus’ mainstay
products, contribute to the early detection of lesions from gastrointestinal diseases such as cancer.
If a suspicious lesion is found during the endoscopic examination, the area can be sampled forpathological examination.
Recently, our endoscopes’ magnification function is expected to enable doctors to make a definitive
diagnosis immediately based on magnified images without the need to damage body tissue.

Minimally
Invasive
Treatment

 astrointestinal endoscopes can also be used together with endotherapy devices to treat early-stage
Gcancers, as well as various treatments such as removal of polyps and accidental foreign objects.
In the field of urology, we are deploying devices that can be used in clinics to treat benign prostatic
hyperplasia (BPH), which is expected to increase with the aging of the population, without the need for
excisional surgery. It is a minimally invasive treatment that ensures no permanent foreign object remains
in the patient’s body.
Unlike conventional open surgery, endoscopic surgery (laparoscopic surgery) does not require large
abdominal incisions therefore patients are expected to feel less post-operative pain, spend shorter daysin hospital and return to normal life more quickly.

Note: Due to rounding, the total may
not add up to 100%.

North America¥322.2 billion(36.5%)

Olympus Integrated Report 2023

Europe¥222.2 billion(25.2%)

11.9 billion

Endoscopic
Solutions Business

MedicalService

Overseas Revenue Over¥In other businesses, the Olympus Group conducts R&D and exploratory
activities for new businesses in addition to engaging in R&D, manufacturing,and sales of biomedical materials, such as synthetic bone filler, andorthopedic equipment.

80 %
China
¥117.1 billion(13.3%)

Asia/Oceania¥77.8 billion(8.8%)

Others¥20.2 billion(2.3%)

25

Our Company

Chapter 01

Overview

Our Products
Endoscopic Solutions Business
Gastrointestinal Endoscope
Gastrointestinalendoscopy systems

Therapeutic Solutions BusinessA group of products for inserting endoscopes into the digestive organs through natural orifices(mouth, nose, anus) for observation and diagnosis

Flexible endoscopes

A group of products that are inserted into the instrument channel of flexible endoscopes and used forvarious endoscopic procedures. They can be used for tissue sampling, lesion removal, and hemostasis
without making incisions or small holes on the patient’s body surface

GI-Endotherapy

Reprocessing
Endotherapy devices
Suitable for examinationand treatment of internalorgans by utilizing theflexibility of the insertion
tube and distal end to insert
the scope through themouth or nose, for example

Gastrointestinal endoscopy systems

Flexible endoscopes

Endoscope reprocessors

Endoscopy products that are mainly inserting into the abdominal cavity through a small hole on the bodysurface to check the condition of the inside body during surgical operations and microscope system

Surgical Endoscope
Surgical endoscopy
systems

Endoscopes(Rigid endoscopes, video endoscopes)

Urology

SurgicalMicroscope

Surgical videoscope thathas a distal tip articulation
with 3D vision. It enables
3D observation by
maintaining optimum visualorientation in all directions
Surgical endoscopy systems

Rigid
endoscopes

Medical Service
General repairs

3D deflectablevideoscopes

Respiratory

Papillotome

Therapeutic devices

AI insights and computeraided detection/diagnosis

Rigid
cystoscope

Plasma resection for
BPH and NMIBC*2

Minimally invasive
treatment device for BPH

Thulium fiber
laser system

A portfolio of flexible endoscopes and single-use devices to visualize, diagnose and treat diseases
in the tracheobronchial tree
ScopesEndotherapy devices

Repair center

Bronchovideoscope

Digital health solutions for clinical and operational workflows related to GI and surgical procedures

Digital Hub

Guidewire*2 Non-Muscle-Invasive
Bladder Cancer

Customer Solutions*1

AI-powered software
platform that
integrates withhospital systems andleverages contextual
data to support
enhanced clinical,
administrative, safety,
and quality control.

Hemostasis
clip

A group of urology products for observing, diagnosing and treating the urethra, prostate, bladder, ureter and kidneys byinserting endoscopes transurethrally or percutaneously. Also, a group of gynecology products for observation, diagnosis,
and treating the uterus by inserting endoscopes and instruments transvaginally

Ureteroscope /CystovideoscopeSingle-year or multi-year contracts
Partial or complete repair cost coverage
Priority provision of loaners during repair of defective products
Provision of failure prevention training
Provision of comprehensive services

Procedure Reporting

Electrosurgicalknife

Surgical microscopes

Repair services through repair bases worldwide	Repair services at facilities through field services(stationary equipment such as reprocessors)Intelligent ecosystem
operating software platform

Electrosurgicalsnare

Scopes

4K3D digital images
are projected on alarge 55-inch monitor
to support surgicaloperations instereoscopic view

General repairs and service contracts for endoscopy system

Service contracts

Focus
Area

Biopsyforceps

Integrated procedureroom solutions

Adenoma

Biopsy forceps

Endobronchial valve

Other Therapeutic Areas

ENT

Surgical Devices

A group of products for observing, diagnosing, andtreating the nasal cavity, oral cavity, pharynx, larynx,
and ears by inserting endoscopes through the nose,
mouth, and ears

Broad offering of energy-based devices that enable
laparoscopic and open surgical procedures by providing
tissue grasping, manipulation, dissection, coagulation &vascular control*1 For disclosure purposes, financial results of Customer Solutions are classified as Surgical Endoscope.​

26

Olympus Integrated Report 2023

27

Chapter 01

Our Company

Message from the CFO

more resilient as an organization.
* 3-year CAGR on a continuing business base from fiscal year 2020 after FX adjustment

Advancing to a New Phase of Growthwith a New Company Strategy

Chikashi Takeda
Executive Officer andChief Financial Officer

We aim to generate
sustainable value for all
stakeholders and maximize
our corporate value.”
Achieved Milestone Target ofCorporate Strategy by Enhancing
Corporate Resilience
As the final year of the corporate strategy that weannounced in November 2019, fiscal year 2023 was amilestone for Olympus. Reviewing the past three years, wehave encountered many challenges, starting with COVID-19
in the corporate strategy’s first year, followed by supply
shortages of semiconductors and parts. There were also
increasing geopolitical risks, such as the war in Ukraine,and rising raw material prices. Despite numerous macro
headwinds, we have achieved top-line growth with anannual revenue growth rate of 4.6%* by continuing to fulfill
our mission to deliver products and services to patients andhealthcare professionals. Our performance also benefited
from efforts to optimize costs and resource allocations byimplementing efficiency and effectiveness improvement
measures under our corporate transformation plan,
Transform Olympus. As a result, we were able to achieve an
adjusted operating margin of over 20%, which was amilestone in our corporate strategy. We also madesignificant progress on focusing our corporate portfolio,
which was a key component of our corporate strategy. We
transferred the Imaging Business and Scientific Solutions
Business, and we have transitioned into a long-termsustainable growth phase as a company focused onhealthcare. I believe that the mindset of Olympus
employees has been transformed, and that we are now
28

Olympus Integrated Report 2023

We announced a new company strategy in May 2023. The
three Guiding Principles under this patient-centric strategy
are “Patient safety and sustainability,” “Innovation forgrowth,” and “Productivity.” We also narrowed our financial
targets down to three KPIs that emphasize growth andprofitability. We aim to achieve revenue CAGR of around 5%,
EPS CAGR of around 8%, and maintain the operating
margin at the previous year’s level of 20%. While maximizing
free cash flow is the starting point for achieving these KPIs,
they also correlate closely with our corporate value andstock price. We chose these indicators because they areeasy to calculate and understand, and I believe thissimplicity enabled us to achieve our previous milestone. I am
confident that over the next three years, our 30,000
employees will continue to work toward the common goal
and we will be able to achieve our desired results.
Patient safety is our top priority. While our quality
assurance and regulatory affairs (QARA) transformation efforts
will impact both costs and revenue growth, we anticipate
steady growth thanks to market growth as well as growth
drivers that include new product categories. In particular, weplan to launch the EVIS X1 advanced endoscopy system in
the United States, our largest market, in the middle of fiscal
year 2024, and in China in the near future. To achievesustainable growth in fiscal year 2024 and beyond, we willcontinue to invest in innovation while also focusing on cost
optimization. Some of our initiatives to improve productivity
under Transform Olympus, launched in 2019, have yet toyield results or are still in progress. Going forward, we
anticipate that the effects of these measures will continue toyield benefits by improving our cost of sales ratio andoptimization of SG&A expenses. Since we have continued tooperate on a regional basis, we recognize that there is stillroom for further procurement cost optimization. We haveidentified specific initiatives and priority themes, and we are
gradually achieving results in these areas. We expect toimprove both the effectiveness and efficiency of our efforts
through further evolution of our global operating model. In
addition, we are continuing to utilize platforms based on our
Global Business Services (GBS). Over the past three years,
we have strengthened our resilience and we will strive toachieve the goals in our new company strategy by further
enhancing resilience while adapting quickly and flexibly to achanging environment.

Further Improvements to
the Finance Function
Our finance function activities are targeted toward therealization of the Guiding Principles and the achievement of
KPIs. We have transitioned our finance function, which has
primarily operated on a regional basis in the past, to aframework centered on business partners in business andfunctional categories. This has brought the finance function
closer to business activities so that it can respond quickly
and appropriately to everyday business needs, such as
resource allocation. Because we communicate more closelywith the business units, we are better able to monitor andmanage top-line growth and costs. As a result, we now
anticipate that we will be able to secure the funding needed
for investment in growth over the next three years such as
R&D and further enhancing our business foundation. The
finance function is also contributing to value creation throughactivities that are not directly reflected in our KPIs, such asefforts to optimize our balance sheet. We have reduced
cross-shareholdings by approximately 90% over the past
three years, and by the end of June 2023, Olympus held
shares in only one listed company. We are also taking steps
to dispose of assets that do not contribute to businessgrowth. A gain on the sale of land in fiscal year 2023
contributed significantly to our cash flows. We recognize that
there is room for improvement in our cash conversion cycle(CCC), especially in terms of inventory, and this topic has
become a major consideration for management. Although
we had to lower the priority over the past two years to ensure
reliable product supply to customers in the face of various
challenges, including parts supply shortages, we are now
promoting End-to-End supply chain transformation fromdevelopment to delivery for our patients and customers. We
are also strengthening our tax management and conducting
a comprehensive review to discover opportunities to improve
cash flow, while ensuring regulatory compliance. We continue
to support each business and function based on detailed
monitoring on a 360-degree perspective.

Capital Allocation toGenerate Sustainable Value
We aim to enhance our cash generation ability throughcontinual investment in business growth and productivity
enhancements. To achieve sustainable growth while also
increasing shareholder value, we will prioritize our capital
allocations toward businesses investment in areas in which
Olympus has unique capabilities and will add value. Over the
past four years, we have allocated approximately ¥140
billion to M&A and other investments. In accordance withour company strategy, we continue to strengthen our
product portfolio capabilities through tuck‐in M&A
opportunities in our priority businesses of GI, Urology andRespiratory in existing disease states and attractive
high‐growth adjacencies.
Our shareholder returns policy calls for steady, gradual
dividend growth, and in fiscal year 2023 we increased ourdividend by ¥2 from the previous fiscal year, to ¥16, our fifth
consecutive year of dividend growth. We expect increasing

dividends for the next three years. In addition, we are
currently repurchasing our shares with an approximately¥100 billion ceiling. This is our third share repurchasing since2022, and will run from May 15, 2023 to January 31, 2024.
We allocated approximately ¥80 billion to the two previous
repurchases. We will continue to increase dividends while
also considering additional share repurchasing based on theoutlook for the supply and demand of funds, as well as astrong focus on capital cost optimization, financial discipline,
and the EPS growth rate.

Becoming a Company Chosen
by All Stakeholders
To increase corporate value sustainably, I believe the mostimportant thing is to earn the continuing support of all of our
stakeholders, including patients and their families, healthcare
professionals, investors, employees, business partners,
regulators, and society. The results of our business activities,
as shown in our financial statements, begin with revenue andend with earnings per share after tax. Those figures reflect
the value that we provide in response to our various
stakeholders’ needs. For example, our revenue comes fromour products and services, but we also need to consider
whether we are providing sufficient value to patients in termsof healthcare safety and effectiveness, as well as what
investments we need to make in order to achieve thosegoals. There are other important things we need to consider
such as if we are paying our employees competitivecompensation and enabling them to experience pride andfulfillment through the creation and provision of our products
and services, whether we are investing enough in initiatives
to improve productivity and employee engagement, andwhether our trading condition is conducive to maintaining
win-win relationships with our partners and suppliers. We
need to deliver bottom-line growth to our shareholders while
meeting all of these requirements. To improve financial
performance sustainably, we must continuously verify that weare fully meeting stakeholder expectations.
We are actively introducing systems that will allow us toshare achievements with our stakeholders. In March 2023,
we expanded the scope of our stock-based compensation
system for directors and executive officers, which we
introduced with the aim of incentivizing contribution to the
Olympus Group’s medium- to long-term growth. The system
has been expanded to include employees in senior
management positions. Our management team iscommitted to improving corporate value and shareholder
value from the same perspective as shareholders.
Despite a challenging business environment, weachieved the milestone set down in our corporate strategy.
We are taking a step forward to overcome the nextmanagement challenges. We will continue to strengthen ourresilience as we strive to deliver value and become acompany chosen by stakeholders, while also working tosustainably maximize our corporate value.

29

Chapter 01

Our Company

Messages from Executive Officers

OurManagement
Team
Executive
Chairperson

To achieve sustainable business growth andbecome a leading global MedTech company,
the new Olympus management team is working
together to implement a new strategy with patient
safety as the top priority. On the following pages,
we introduce messages from our executive
officers regarding their role, initiatives, andenthusiasm for realizing Our Purpose under the
new organizational structure from April 2023 andthe new company strategy.

CEO
Yasuo Takeuchi

Profile: Stefan Kaufmann spent ten years in operational and strategic humanresources management with the German department store chain Karstadt AG
before moving to Thomas Cook as head of Human Resources Development. He
then joined Olympus Europe in 2003 as General Manager of Human Resources.
Since then, he has taken on roles including Executive Managing Director in 2011,
Corporate Officer in 2017, and Director, Executive Officer and Chief Administrative
Officer (CAO) in 2019. In 2022, he became Director, Executive Officer, CAO, Chief
Strategy Officer (CSO) and ESG Officer. He started his current role as Chief
Executive Officer (CEO) in April 2023.

See page 02

30

Olympus Integrated Report 2023

TSD HeadNEW

Since my appointment as CEO in 2019, I have been implementing Transform Olympus andcorporate strategy to maximize corporate value. From fiscal year 2024, we have achieved
exclusive focus on the Medical Business. This moves us closer to our aim of becoming a leading
global MedTech company, and in parallel with our structural and cultural changes, we are raising
our quality governance to global standards in order to provide our customers with safer andmore effective medical devices and to be seen as a more trusted partner by our stakeholders.
Since I assumed the office of Representative Executive Officer and Executive Chairperson in
April 2023, I have been working with the new CEO, Stefan Kaufmann, and the rest of the new
executive officers to ensure a smooth handover of business operations. Given Olympus’ many
assets in Japan that generate considerable value, there will be important occasions when I must
address accountability on behalf of the Olympus Group, based on the cultural background, so I
will work closely with Stefan to communicate effectively with our stakeholders.
Integrating activities that address social issues into day-to-day operations is critical to asustainable company, therefore I will lead the integration of ESG initiatives into the company
strategy, which already embraces our commitment to sustainable business.

Frank Drewalowski
Executive Officer andEndoscopic Solutions Division HeadNEW

Director, Representative
Executive Officer,
President and Chief Executive Officer

NEW

Profile: Yasuo Takeuchi joined Olympus Optical Co. Ltd, known today as Olympus
Corporation, in 1980. He has held roles in corporate divisions such as accounting
and corporate planning, as well as in Medical and Life Sciences businesses andother business units. In 2009, he was appointed Corporate Officer. After becoming
Director in 2012, he held executive-level management positions in North America,
Asia Pacific, and Europe. In 2016, he was appointed Vice President, Chief Financial
Officer, and Chief Regional Representative Officer. In 2019, he became Director,
Representative Executive Officer, President and Chief Executive Officer. He started
his current role as Executive Chairperson in April 2023.

As the leader in endoscopy-enabled care, Olympus has been elevating the standards ofendoscopy with innovative best-in-class devices and services along the care pathway.
The rise in chronic diseases and aging populations, however, poses the challenge ofproviding even better outcomes for more people, with better care-team and patient
experience, at lower total cost. We therefore believe in empowering patients and careproviders with an intelligent endoscopy ecosystem that enables AI-driven cognitive
support for better clinical decisions, reduced administrative workload, enhanced safety
and quality control, as well customer-centric commercialization. At ESD, the vision forthis new era of endoscopy takes shape: from developing best-in-class and connective
endoscopy systems to developing the integrating software architecture and flexible
commercial and service solutions. I am excited about the launch of our upcoming
innovations that will help our intelligent endoscopy ecosystem grow.

ESD Head

Profile: Frank Drewalowski started his career in 1993 as Product Manager in the Endoscopy Department at Olympus Europe.
He then gained experience in Sales and Marketing positions working with a steadily increasing product portfolio. In 2019, he
was appointed Executive Managing Director of Olympus Europe. After serving as Corporate Officer and Global Division Headof Endoscopic Solutions since April 2020, he began his current role as Endoscopic Solutions Division Head in April 2023.

Stefan Kaufmann

Director, Representative
Executive Officer,
Executive Chairperson and
ESG Officer

Shaping a new era of endoscopy: To elevate the standard of care weempower patients and care providers with an intelligent endoscopy
ecosystem that features AI technology

Gabriela Kaynor
Executive Officer andTherapeutic Solutions
Division HeadNEW

TSD accelerates Olympus’ development of minimally invasive single-use
solutions and advances our culture
Quality and patient safety shape every decision we make at Olympus, and my priority is
to unify TSD around our company strategy. Olympus has a tremendous opportunity to
expand our portfolio beyond traditional endoscopy by focusing on minimally invasive
single-use devices. Our mission in TSD is to accelerate our ability to innovate by bringing
clinically and economically differentiated solutions to patients across the care pathway in
our key areas of focus. We strive to accelerate our R&D capabilities, strengthen our
inorganic pipeline, and expand our global footprint. To accomplish these goals, it is vital
we empower our team members across the globe to take smart risks and act with agility.
As the first female executive officer at Olympus, I am personally invested in promoting
diversity and the presence of women in leadership roles. A unified, engaged, and diverse
team is the key to success, and we embrace our mission to excel in the single-use spaceand elevate the standard of care.
Profile: Gabriela Kaynor took on varying roles within Operations, Supply Chain, and Engineering at Johnson & Johnson andsimilar positions at Acclarent and Covidien (now Cardinal Health) before joining Olympus Corporation of the Americas in 2016
as Executive Director Strategy Development and Portfolio Management. After holding several positions within the Company,
she was appointed Global Division Head of Therapeutic Solutions Division in 2020. She started her current role as Therapeutic
Solutions Division Head in April 2023.

Chikashi Takeda
Executive Officer and Chief Financial Officer

CFO

Profile: Chikashi Takeda spent over 30 years with Astellas Pharma and held numerous roles acrosscorporate financial planning and analysis, business development, and corporate governance. After
serving as Senior Corporate Executive, Chief Financial Officer (CFO), and Head of Global
Procurement, he joined Olympus in 2020 in his current position as CFO and Executive Officer. He
emphasizes the importance of resource allocation to maximize corporate value and focus on
patient-centric activities.

See page 28

31

Chapter 01

Our Company

Messages from Executive Officers

Develop our company strategy and define future global operating model totruly be a global medical technology leader
As Chief Strategy Officer, I work closely with all stakeholders to develop our company
strategy and advance Olympus’ agenda as a global medical technology leader. My
responsibility also includes the management of Regional Representative Officers, theestablishment of frameworks to define our company’s future global operating model, thedevelopment of the company business and our M&A activities. With these changes, wewill bring a strong focus on patient safety, innovation, and productivity. I prioritize ensuring
Olympus can fulfill customers’ expectations with the highest emphasis on patient safety
and elevating the standard of care by improving relations with healthcare providers andcontinuously reviewing the company’s priorities to ensure the right resources are allocatedto the right areas. Last but not least, we are committed to excelling in talent development
and organizational health, including diversity, equity, and inclusion.

CSO
We will achieve sustainable growth by realizing a Healthy Organization andencouraging employee development

Nacho Abia
Profile: Nacho Abia joined Olympus Spain (now Olympus Iberia) in 2001 as Managing Director of the Iberia region after
holding several positions in the IT and consumer electronics industries. He was appointed CEO of Olympus Corporation of theAmericas in 2015 and Corporate Officer in 2017. In 2019, he became the Regional Representative Officer of the Americas andHead of the Therapeutic Solutions Division. In 2020, he was appointed Executive Officer and Chief Operating Officer. He
started his current role as Chief Strategy Officer in April 2023.

CMSO

Tetsuo Kobayashi
Executive Officer andChief Manufacturing and
Supply Officer

Executive Officer andChief Strategy Officer
NEW

My aspiration is to evolve our foundations frommonozukuri—“craftsmanship”—to kachizukuri
As the operational heart of Olympus, CMSO will commit energy and resources to address
the issues raised in FDA’s warning letters and to implement one global quality management
system, with fully harmonized processes between functions. With strong focus on Healthy
Organization, we will find balance between these remediation efforts and maintaining theengagement of our employees. My aspiration is to evolve our foundations from monozukuri– “craftsmanship” – to kachizukuri, which means “creating value.” This value will comefrom cross-functional collaboration, costs containments through process standardization,
digitalization, responsible and reliable supply chain, product quality and safety.

As CHRO, I am building a global framework of talent management, recruitment,
placement of the right talent in the right positions, performance management, andtraining, in order to support each division and function from a variety of HR perspectives.
In May 2023, we introduced a global performance and goal management system tointegrate performance management systems worldwide, and in fiscal year 2024, allemployees set the global quality goal focused on patient safety that will be reflected intheir appraisal. We finally introduced the job-based HR system for all employees in Japanin April 2023 with the intention of further enhancing talent development to empower
employees to grow professionally and support career development. In addition to these
activities, we promote a Healthy Organization by accelerating our efforts to realize
diversity, equity, and inclusion, which will lead to our sustainable growth.

Shigeto Ohtsuki
Profile: Shigeto Ohtsuki began his career in 1984 in the Department of Human Resources at Hitachi Ltd. He has also worked
as Human Resources Manager at General Electric Co., HR Director for Japan and the Asia-Pacific region at Hewlett-Packard
Co., and Corporate Officer, Human Resources at Shiseido Co. Ltd. He joined Olympus in 2019. In 2020, he became Head of
Human Resources and Corporate Officer. He started his current role as Chief Human Resources Officer in April 2023.

CQO

Profile: Tetsuo Kobayashi joined Olympus Optical Co. Ltd, known today as Olympus Corporation, in 1983. He began his
career as a manufacturing management specialist. He cultivated his international experience in the U.S. and Singapore, andafter returning to Japan, he held various management positions in the medical field and business transformation at Olympus.
He was appointed as the officer in charge of supporting the CFO in 2016, served as the Senior Vice President of the office of
CEO in 2019, rising to Chief Strategy Officer in 2021. He has been in his current position as Chief Manufacturing and Supply
Officer since 2022.

Innovating new solutions and creating value by better clinicaloutcomes and improved customer experience
It is our vision to become a leading global and agile R&D organization, innovating new
solutions for products, procedures and services that elevate the standard of care. We
concentrate on focus areas and prioritize patient safety and product quality while
ensuring predictable and efficient execution based on a high performing and healthyorganization. Next to Olympus’ established product portfolio we engage in thedevelopment of single-use endoscopes, digital solutions and advanced endoluminalinterventions, supporting unmet customer needs and creating value by better clinicaloutcomes and improved customer experience.
Profile: Andre Roggan joined Olympus in 2004 following the Company’s acquisition of Germany’s Celon AG, where he was Chief
Technology Officer. He led the Development, Manufacturing, and Repair organization in Europe from 2012 to 2021. In 2019, he
concurrently became the Global Head of Development for the Therapeutic Solutions Division. He has also been serving as Global
Head of Operational Group Management. He has been in his current position as Chief Technology Officer since 2022.

CHRO

CTO
Pierre Boisier

Executive Officer andChief Human Resources Officer
NEW

Moving to a globally unified quality and regulatory organizational
structure of a global MedTech company
My role is to make sure that we continue to follow all applicable regulations in the markets
where we operate, focus on patient safety and product quality, and maintain highcustomer satisfaction. To achieve these goals, Olympus is moving to a more globallyunified quality and regulatory organizational structure and is continuing to hire experienced
MedTech leaders and team members to elevate processes to a global standard. We are
implementing three major projects to transform Olympus into a leading global MedTech
company: remediating manufacturing and design centers to meet regulators’ expectations
and rectify outstanding issues; rolling out a global quality management system that isdesigned to standardize processes and integrate systems throughout Olympus; andundertaking a global quality transformation from a precision equipment company to a
100% MedTech company. With these initiatives, Olympus aims to resolve QARA issues
and focus on achieving a robust target state of quality and compliance.

Executive Officer andChief Quality Officer
NEW

Profile: Pierre Boisier started his career as a production technician on the manufacturing floor and rose to executive-level
positions across a variety of different companies, and joined Olympus in 2021 as Chief Quality Officer, a position he still holds
as of April 2023. He has over 35 years of experience in roles related to quality, operations, R&D, and pharmaceuticals, including
more than two decades of leadership in quality management at companies such as Boston Scientific and Becton, Dickinson
and Company.

Andre Roggan
Executive Officer andChief Technology Officer

32

Olympus Integrated Report 2023

33

2
Our
StrategyThis chapter focuses on Olympus’ new company strategy
announced in May 2023. Olympus aims to become aleading global MedTech company through theimplementation of this strategy.

Contents
36
38
42
46
50
52
54
56
58
60
62
64
66
68
70
72
77
78
81

34

Our New Company Strategy
ESG Strategy
Global Healthcare Data
Overview and Direction of Medical BusinessEndoscopic Solutions Business
Therapeutic Solutions Business
Customer Voices
Infection Prevention
Innovation
Intellectual Property Activities
Medical Business Strategy: Chinese Market
Medical Business Strategy: Asian Emerging Markets
Strategic M&A
Care Pathway Enhancement
Intelligent Endoscopy Ecosystem
Evolving Our Corporate Culture
Activities to Improve Productivity
Carbon Neutral Society and Circular Economy
Responsible Supply Chain

Olympus Integrated Report 2023

35

Our Strategy

Chapter 02

Our New Company Strategy

Company Strategy

FY2024-FY2026 Financial GuidanceGuiding Principles

Despite continuing drastic changes in the external environment, we aim to sustain an annual revenue growth rate of around 5% andmaintain an operating margin of around 20%. EPS CAGR is targeted at around 8%, above revenue growth, with productivity andefficiency improvements to control rising costs. Over the next three years, we plan to resolve QARA issues and actively invest forsustainable growth. At the same time, we will take steps to enhance efficiency, including the optimization of manufacturing plants
through cost-cutting activities, and globalizing our organization and operations.

Olympus has decided “Patient safety and sustainability,” “Innovation for growth,” and “Productivity” as the three priorities in orderto achieve “Making people’s lives healthier, safer and more fulfilling” as stated in Our Purpose. In addition, we will accelerate
investment in strategic value pools that drive long-term sustainable growth: Business and Global Expansion, Strategic M&A, Care
Pathway Enhancement, and Intelligent Endoscopy Ecosystem. We will continue to invest in patient safety and our business’
growth, which are fundamental to our organization’s long-term sustainability.

Patient safety
andsustainability

1

Resolve pending commitments to the FDA,
prove confidence with regulators

Initiatives for Patient Safety
and Growth (P. 16)

Competitive Growth Along with Steady Value Creation

Revenue Growth*1~5 %2 Lead in organization health and ESG

ESG Strategy (P. 38)

Therapeutic Solutions Division

5%

TSD

ESD

EPS Growth*2~ 20 %~8 %*1 Constant currency basis*2 Adjusted for extraordinary Items
Exclude “Other income / expenses”
No adjustment will be made for the impact of exchange rate
fluctuations; actual exchange rate will be used

CAGR from FY2023

Innovation forgrowththe Olympus brand,
3 Strengthen
elevate the experience of our customers

4
Productivity

Grow our business, through purposeful
innovation and acquisitions

Capital Allocation
Innovation (P. 58)
Strategic M&A (P. 66)

a high performing organization focused
5 Build
on patient safety and product quality

6 Ensure simplicity and operational efficiency

Regarding capital allocation, we are prioritizing business investments. Under our new company strategy, we will continue to proceedwith business investments and M&A, focusing on disease states where Olympus can have market-leading impact and contribute toelevating the standard of care. In addition to investments for business growth, we will also invest in sustainable growth, such as
strengthening QARA functions. Through appropriate financial management, we will see a stable and gradual dividend increase, andconsider flexible buyback of company shares based on investment opportunities and cash/financial conditions.

Business
Investment

FY2021—FY2023

R&D

Strategic Value Pools that Drive Long-term Sustainable Growth
M&A

Shareholder
Returns36

Olympus Integrated Report 2023

Strategic M&A

Care Pathway
Enhancement

Intelligent
Endoscopy
Ecosystem

Investment for profitable, organic growth
Strategic investment for growth opportunities

Prioritize

Activities to Improve
Productivity (P. 77)

CAPEX

Business andGlobal Expansion> 5%

CAGR from FY2023

Operating Margin*2
Evolving Our Corporate
Culture (P. 72)

Endoscopic Solutions Division¥ 223 . 0 billion
FY2021—FY2023 total

FY2024—FY2026 Forecasts
Ratio to revenue from
8% in FY2023 to¥ 227. 0 billion

8. 5 %in FY2026

Maintain similar level

FY2021—FY2023 total
Acquired 7 companies for

Focus on tuck-in M&A¥ 135. 0 billion

Dividends

Stable and gradual dividend increase in line withmedium- to long-term business performance

Buyback

Flexible buyback of company shares based oninvestment opportunities and cash/financial conditions

FY2021

FY2022

FY2023

FY2024 Forecast

FY2024—FY2026 Forecasts

Dividends¥15 . 4 billion¥17. 8 billion¥ 20 .1 billion¥ 22 .6 billion

Over ¥¥12.0 per share¥14.0 per share¥16.0 per share¥18.0 per share

FY2024–FY2026 total

Buyback—¥ 30. 0 billion¥ 50. 0 billion

67. 8 billion

Share Buybacks andimprove capitalefficiency

Over¥ 100. 0 billion

37

Our Strategy

Chapter 02

ESG Strategy

Materiality Topics at Olympus

ESG Strategy Structure

Olympus will endeavor to build a strong and sustainable organization by working with regulators and stakeholders
to remain a company with integrity and transparency. We will meanwhile actively aim to contribute to the realizationof Our Purpose of “making people’s lives healthier, safer and more fulfilling,” in order to become a leader in thehealthcare industry as well as in ESG. We have positioned the promotion of ESG as one of our priority initiatives
in the new company strategy, and will enhance the affinity and consistency between our ESG strategy andcompany strategy, business strategy, and functional strategy to levels greater than previously seen.

Materiality Topics at Olympus
In conjunction with the formulation of the newcompany strategy, we reviewed and adjusted our
ESG strategy. In the review of materiality, we
identified Six Focus Areas and 25 Materiality Topics
falling under these Focus Areas, based on fresh
input from our stakeholders, societal expectations
and requirements, trends within the MedTech
industry, and analyses of risks and opportunities
from the perspective of sustainability*1. In theprocess of identifying these 25 Materiality Topics,
mapping of these topics onto the two axes of“importance to stakeholders” and “impact on
Olympus’ business (importance to Olympus)” iscarried out, with Olympus then assigning these to
three levels of priority: Top Priority, High Priority, andOthers. KPIs have been set for those Materiality
Topics that have been positioned as particularly
important Top Priority topics, with progress toward
their achievement being actively managed. Progressstatuses and new initiatives will also be actively
discussed at ESG Committee and Board of
Directors’ meetings.

STEP 01

Identification of Social Issues
Listing up of social issues based on an outside survey onchanges in sustainability trends since previous identification, as
well as various ESG-related frameworks and ESG survey
assessment items

STEP 02

Assignment of Priority to Social Issues
by Importance to Stakeholders
Conducting of interviews with medical institutions, government
agencies, investors, and ESG assessment bodies. Assignationof priority to issues in terms of their importance to stakeholders

STEP 03

STEP 04*1	The existing six important ESG areas and five materiality items wererealigned into Six Focus Areas.

Assignation of Priority to Social Issues
by Importance to Olympus
Assignation of priority to issues in terms of impact on Olympus
business
Materiality Identification
Identification of materiality items through processes including
deliberations by the Group Executive Committee and the Boardof Directors. In addition, drafting of a Materiality Matrix withassigned priorities to the identified social issues from theperspective of the two axes

Materiality Matrix

T Top Priority Materiality Topics (Eight)

Business ethics and compliance
Human rights commitment insupply chain management
T Scope 1 and 2 carbon emissions
T Scope 3 carbon emissions
H Water and waste management
H Climate risk resilience
T Corporate governance andreporting transparency
H
H

High
Mid
Low

Stakeholder Impact

Ethical marketing practiceEnvironmental reporting transparency
Involvement of other stakeholders

Corporate citizenship and philanthropy
Tax transparency
Low

Strengthening risk and crisis
management, fostering a risk-aware
corporate culture
Diversity in Board of Directors

Board of Directors
Group Executive Committee
ESG Committee
Owner: ESG Officer
Secretary: ESG Team
Members: Business and Function Heads

Workinggroup fora crossfunctional
initiative

Workinggroup fora crossfunctional
initiative

Workinggroup fora crossfunctional
initiative

Workinggroup fora crossfunctional
initiative

Workinggroup fora crossfunctional
initiative

Sustainable Society: Contributions to the Sustainable Development Goals (SDGs)
Olympus will engage, through its business activities, with theresolution of environmental and societal issues facing the world while
contributing to the realization of a sustainable society, which is theobjective of the SDGs*2. Toward this end, we have deciphered andelucidated the particular relationships between the SDGs and ourown business activities, in the process identifying 13 goals closely
related to Olympus’ operations.

Of these 13 goals, the SDG to which our degree of contribution
through our business is greatest is goal 3 “Good health andwell-being,” and we will actively contribute to the resolution of multiplesocietal issues centered on “health” as a global MedTech company.
*2	Sustainable Development Goals (SDGs): Common goals for the international community set
by the United Nations toward the achievement of a sustainable world by the year 2030.

Olympus and Its Relationships with the SDGs
SDG to which our degreeof contribution throughour business is greatest

Relevant Goals of SDGs

H High Priority Materiality Topics (Nine)

Contribution to health equity and access
Innovation for better healthcare outcome
T Quality and safety in product,
service and solution
T Supply chain risk mitigation and resilience
H Workplace safety and human rights
H Employee development and engagement
T Diversity, equity and inclusion
T Circularity through product stewardship
T

H

Public awareness building on early
detection and treatment
H Privacy, information and cyber security
H

Innovation to improve manufacturing process

Mid

To enhance Olympus’ ESG initiatives, we undertook a reconsiderationof our promotion structure for sustainability strategies at the Grouplevel in fiscal year 2023. We then established a new sustainability
governance system in April 2023. Under the new governance system,
an “ESG Committee” has been put in place, with the ESG Officer
having ownership, and the committee comprised of heads ofrespective businesses and functions. The ESG Committee
implements sustainability strategies, discusses important measuresrelated to materiality, and monitors progress against goals.
Furthermore, we have established thematic working groups
under the ESG Committee, such as those on the environment andhuman rights, to study and share information on measures that need
to be taken across functions.
The ESG Officer reports to the Group Executive Committee andthe Board of Directors on the implementation status of thesustainability strategy as well as outcomes and attendant challenges.
We thus ensure that a proper and appropriate sustainability strategy
is implemented based on the guidance and advice of the Group
Executive Committee and the Board of Directors.

High

Main materiality items associated with contributions to goal 3

Olympus will contribute in particular to the achievement of“3. Good health and well-being”
Main materiality items associated with contributions to goal 3
Contribution to health equity and accessContribution to health equity
Healthcare professional (HCP) training and enablement
Strategy to improve accessibility to productInnovation for better healthcare outcome
Public awareness building on early detection and treatment
Healthy Organization

Business Impact

38

Olympus Integrated Report 2023

39

Our Strategy

Chapter 02

ESG Strategy

Six ESG Focus Areas

1

Healthcare Accessand Outcome

3

Responsible Supply
Chain

4

Healthy Organization

5

Carbon Neutral Society
and Circular Economy

6

Corporate GovernanceOlympus recognizes the healthcare businessas a domain conducive to our contributing tosociety by exercising our prowess in the areasin which we most excel. We will aim tocontribute to society by delivering innovative
products that facilitate greater healthcare
outcomes and training opportunities for HCPs.

As a company providing medical devices,
Olympus foremost priority should be the safetyof patients. We are endeavoring to ensure
observance of anti-corruption and othercompliance measures and our complete
accordance with the laws and regulations ofrespective countries to ensure the quality andsafety of our products.

The stable provision of medical devices is
indispensable to ensuring the stable availabilityof healthcare in society. In addition to fulfilling
our responsibility to deliver a stable supply ofour products, we will actively work together
with our suppliers to address social issues,
such as those involving the environment andhuman rights.

Olympus defines a healthy organizational
culture as one in which each and every
employee can perform at their best, and isengaged in a variety of initiatives towards its
aim of becoming such an organization.

Olympus recognizes climate change as aserious issue that endangers the integrity of
the global environment, as well as being an
issue which affects our business activities. We
will continue to promote a variety of ongoing
initiatives toward the achievement of carbon
neutrality into the future.

Olympus has, over the course of many years,
focused on strengthening our corporate
governance to ensure that we remain acompany that is trusted by our stakeholders.
We recognize that doing so is of vital
importance for the sustainability of ourcompany and will continue to strive to enhance
corporate governance into the future.

25 Materiality Topics

25 Materiality Topics

25 Materiality Topics

25 Materiality Topics

25 Materiality Topics

25 Materiality Topics

Top Priority
	Contribution to health equity and accessHigh Priority
Innovation for better healthcare outcome	Public awareness building on early detection
and treatment
OthersCorporate citizenship and philanthropy

Top Priority
	Quality and safety in product, service, andsolutionHigh Priority
	Business ethics and compliance	Privacy, information, and cyber security
Others	Tax transparency	Ethical marketing practice	Risks and crisis management, and risk culture
Innovation to improve manufacturing process

Top Priority	Supply chain risk mitigation and resilience
High Priority
	Human rights commitment in supply chain
management

Top Priority
	Diversity, equity, and inclusion
High Priority
	Employee development and engagement
	Workplace safety and human rights

Top Priority
	Scope 1 and 2 carbon emissions
	Scope 3 emissions
	Circularity through product stewardshipHigh Priority
	Water and waste management
	Climate risk resilience
Others	Environmental reporting transparency

Top Priority
	Corporate governance and reportingtransparency
Others	Involvement of other stakeholders
	Diversity in Board of Directors

KPI

KPI

KPI

KPI

KPI

+20 %
CRC*1 related training in target emerging
countries and regions+20 %CRC* related online/hybrid training
provided with HCPs globally
1

Related Information
Integrated Report 2023

Timely ESG
disclosuresaccording to SASB
Standards

Related Information
See page 64

Sustainability
Elevating the Standard of Care: https://www.olympusglobal.com/csr/social/medical-standards/*1 CRC: Colorectal cancer*2 Olympus Corporation

SDGs

40

2

Compliance, ProductQuality and Safety

Olympus Integrated Report 2023

Integrated Report 2023

30 %Annual assessment/
monitoring for
multi-tier supply
chain risks

Related Information
See pages 16, 99

Sustainability
Compliance: https://www.olympus-global.com/csr/
governance/compliance/

Integrated Report 2023
Sustainability

Net-zero GHG emissions acrossScope 1, 2, and 3 by 2040

Management positions held by women
by FY2028 globally

100 %Eligible male employees in Japan*2
taking parental leave by FY2026

Related Information
See page 81

Net-zeroIntegrated Report 2023

Carbon Neutral

Enterprise Risk
Management

In our site operations acrossScope 1 and 2 by 2030

Applied consistently across the globe

Related Information
See page 72

Sustainability

KPI

Integrated Report 2023

Related Information
See page 78

Sustainability

Integrated Report 2023

See page 84

Sustainability

Procurement: https://www.olympus-global.com/csr/
social/procurement/

Diversity, Equity and Inclusion: https://www.olympusglobal.com/csr/social/diversity/

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

Corporate Governance: https://www.olympus-global.
com/company/governance/

SDGs

SDGs

SDGs

SDGs

Product Responsibility: https://www.olympus-global.com/
csr/social/product-responsibility/

SDGs

41

Our Strategy

Chapter 02

Business andGlobal Expansion

Global Healthcare Data

Global Healthcare Data
Population

Cancer	Aging population is a critical trend across major regions and worldwide as the 65+ segment grows by 3% annually and 0-14
will experience no growth.
	China will see the most rapidly growing aging population and declining number of young people due to the increasing
longevity and dropping birthrate.
	Aging population is one of the primary factors of increased disease burden and Olympus continues providing solutions toimprove the standard of care in targeted disease states.

	Lung, Colorectal, Prostate, Stomach, and Liver cancers will remain the Top 5 by volume addressable cancers over the longterm with significant growth in absolute incidence. Stomach cancer is projected to be the fastest growing and followed bycancers of the Esophagus, Pancreas and Bladder.
	The overall opportunity to improve the standard of care and patient outcomes will continue to grow significantly across
Olympus-addressable cancers.

Increase in New Cancer Cases, World*, 2020–2040
Annual Growth of Population by Age Group, 2020-2040
0

U.S.

EU5*

Japan

China
3.5%

2.1%

-0.8% -0.5%

15-64

65+

0-14

15-64

65+

0-14

15-64

65+

0-14

15-64

65+

0-14

15-64

65+

0

2,500

5,000

United States+40%

Pancreas+62%

10,00012,500(U.S. dollars)

+37%

Brain

+35%

Source: Ferlay J, Laversanne M,
Ervik M, Lam F, Colombet M, Mery
L, Piñeros M, Znaor A,
Soerjomataram I, Bray F (2020).
Global Cancer Observatory: Cancer
Tomorrow. Lyon, France:
International Agency for Research
on Cancer. https://gco.iarc.fr/
tomorrow, accessed July 7, 2023.

+23%

	Lung, Colorectal, Liver, Stomach, and Esophageal cancers will remain the Top 5 by volume addressable cancer deaths overthe long term. Deaths from Prostate and Bladder cancers are projected to be the fastest growing with 92% and 80% increase
respectively, from 2020 to 2040.

Increase in New Cancer Deaths, World*, 2020–2040
0

+2.5%

CanadaOvary

500,000

1,000,000+2.2%

Colorectal

+0.4%

Liver

Japan

+0.7%

Italy

+0.4%

China

+11.9%–0.0%

South Africa–2.5%

Colombia+0.5%

Egypt, Arab Rep.

+3.5%

India

+2.3%

*CAGR: 2010-2020
Source: World Bank,World Health Organization Global
Health Expenditure database
https://data.worldbank.org/
indicator/SH.XPD.CHEX.PC.
CD?end=2019&start=2000&type=points&view=chart

+80%

Brain

+41%

Ovary

+48%

Thyroid+71%+72%

Cancer Deaths (N)

+64%
+68%

+68%

+92%

Bladder

Gallbladder3,500,000+64%

Prostate–2.4%

MexicoOlympus Integrated Report 2023

Pancreas3,000,000+70%

Esophagus+3.2%

2,500,000+61%

Stomach

–0.5%

Spain

2,000,000

Lung

FranceBrazil

1,500,000+1.0%

United Kingdom

Russian Federation*Selected cancers that Olympus iscurrently offering products andservices

2010

+4.1%

Germany

42

2020
7,500

+59%

Cervix uteri

ThyroidHealth Expenditure

Health Expenditure per Capita and CAGR* (selected countries)

+58%

+64%

Bladder

Source: United Nations, Department of Economic and Social Affairs, Population Division (2022). World Population Prospects 2022, custom data acquired via website.
* EU5: UK, France, Italy, Germany, Spain

	The U.S. healthcare expenditure per capita is by far the largest and growing at the compound annual growth rate (CAGR) of
4.1% from 2010 to 2020. The health spending per capita in China has been growing significantly with approximately 12%
CAGR.
	Olympus is contributing to improve healthcare access globally through supporting healthcare professionals training, etc.

+59%

+59%

Esophagus(AgeGroup ) 0-14

New Cases (N)

+66%

Liver

-2.6%

4,000,000+56%

Prostate
Stomach

-0.1%

-0.7%

-1.0% -1.0%

3,000,000

Colorectal

0.7%

0.3%

-0.3%

2,000,000

Lung

3.0%

1.6%

0.1%

1,000,000

Worldwide*Selected cancers that Olympus iscurrently offering products andservices
Source: Ferlay J, Laversanne M,
Ervik M, Lam F, Colombet M, Mery
L, Piñeros M, Znaor A,
Soerjomataram I, Bray F (2020).
Global Cancer Observatory: Cancer
Tomorrow. Lyon, France:
International Agency for Research
on Cancer. https://gco.iarc.fr/
tomorrow, accessed July 7, 2023.

43

Chapter 02

Our Strategy

Business andGlobal Expansion

Global Healthcare DataGI

Urology

Colorectal Cancer Patients—Incidence by Selected Countries(Thousands)
1,200

+1.7%

CAGR

1.4%
900

0.8%
-0.2%

600

2.3%

300

0

2020

U.S.
EU5*¹
Japan
China

2040

	Colorectal Cancer (CRC) is a primary driverof cancer worldwide, accounting for
approximately 10% of all cancer cases and is
the second leading cause of cancer-related
deaths worldwide. Its burden is expected toincrease with the risk factors including family
and hereditary history but most cases are
sporadic (increasing with age).
	CRC has a long history of natural progression
demonstrated. Olympus, a leader in flexible
endoscopy, is committed to its part in thefight against CRC with the mission to raiseawareness and ensure early detection.

Bladder Cancer Patients—Incidence by Selected Countries

Colonoscopy
Total Cumulative
Growth in the U.S.
(2009-2019)*2(Thousands)
500

+1.8%

CAGR

1.9%

400

300

+22 %

1.4%

200

0.6%
100

3.0%
0

2020

U.S.
EU5*¹
Japan
China

	Bladder cancer is one of the common
cancers worldwide. With its high prevalence,in conjunction with its vulnerability tomultiple recurrences and progression
despite local therapy, leads to a substantial
health service burden globally.
	Olympus is focused around decreasing
bladder cancer recurrence through improved
detection and resection of non-muscle
invasive tumors and enhancing healthoutcomes and patient experiences.

Cystoscopy
Total Cumulative
Growth in the U.S.
(2009-2019)*2

+10 %

2040

BPH Patients—Diagnosed Prevalence by Selected Countries
Gastric Cancer Patients—Incidence by Selected Countries(Millions)(Thousands)
800

CAGR

+1.7%

1.4%
1.2%
0.2%

600

400

2.2%
200

0

2020

U.S.
EU5*¹
Japan
China

	Gastric cancer remains one of the most common and deadly
cancers worldwide, especially among older males. China is a country
with a large population of affected patients.
	Gastric cancer incidence and mortality are highly variable by region
and highly dependent on diet and Helicobacter pylori infection.
	Olympus, a leader in flexible endoscopy, manufactures gastroscopes
for the diagnosis and treatments of gastric cancers. When gastriccancer is detected in its early stages, endoscopic resection is acommon approach of treatment with shorter hospital stay and faster
return to normal life than conventional open surgery.

60

+1.6%

1.5%
40

0.4%
-0.4%

30
20

2.3%

10
0

2020

(Millions)
120(Thousands)

+2.0%

CAGR

1.2%
1.1%

1,500

0.5%
1,000

2.6%

500

0

U.S.
EU5*¹
Japan
China

	Lung cancer is by far the leading cause of cancer death. Non-Small
Cell Lung cancer (NSCLC) represents 85% of lung cancer types,
15% being Small Cell Lung cancer (SCLC). The burden of NSCLC is
expected to increase to nearly 1.5 times in new cases by 2040 from2020 (U.S., EU5, Japan, China). The highest incidence with fastest
evolution can be found in China. Main risk factors are cigarettesmoking, secondhand smoke, and exposure to harmful chemicals.
	Olympus’ mission is to improve outcomes for patients with, or at riskof, having lung cancer by elevating the standard of care acrossdiagnosis and staging.

2040*1 EU5: UK, France, Italy, Germany, Spain
Source: Epi Database, Cerner Enviza. Accessed July 2023
*2	Source: Compiled from Merative MarketScan Outpatient View database released in 2011 and 2021. MarketScan is a registered trademark of Merative in the U.S., other countries or both.
*3	Source: BPH: surgical management – Urology Care Foundation website: www.urologyhealth.org. Updated July 2013
*4 Source: Definitive Healthcare database*5 Source: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5817324/

44

Olympus Integrated Report 2023

2040

TURP
(Trans urethral resectionof the prostate)
Total Cumulative
Growth in the U.S.
(2013-2023)*2, 4+28 %Kidney Stone Patients—12 Month Total Prevalence by Selected Countries

Non-Small Cell Lung Cancer (NSCLC) Patients—Incidence by Selected Countries

2020

U.S.
EU5*¹
Japan
China

2040

Respiratory

2,000

CAGR

50

	Benign Prostatic Hyperplasia (BPH) affects
50% of men aged 51–60 years of age(including undiagnosed)*3. Symptoms often
start mildly, but typically develop further overtime and require different types of therapies
in line with severity. The majority of BPH
patients are Mild (43%) or Moderate (38%)
while 19% are Severe.
	For years Olympus has been an innovator indeveloping and marketing procedural
solutions for BPH, with electrodes forresection, vaporization and enucleation. By
providing new therapeutic solutions with the
iTind device, Olympus will continue to be a
global market leader in Urology.

+0.3%

CAGR

0.9%

90

0.4%
0.2%

60

0.2%
30

0

2020

2040

U.S.
EU5*¹
Japan
China

	Currently 12% of the global population are affected by kidney stones
with prevalence rates rising globally, particularly in China, U.S. andEU5 countries*5. The disease has been associated with an increased
risk of end-stage renal failure.
	Olympus has a long history of supporting healthcare professionals tomeet the needs of patients and customers in stone managementwith expertise in Visualization and Lithotripsy. “See and Treat” is coreto the patient outcomes of safely rendering a patient stone free.
Olympus is working to shape and increase procedural efficacy andefficiency through an Integrated Stone Management platform
combining breakthrough laser technologies with endoscopy
technologies through digital health offerings.
	Olympus is constantly redefining total procedural solutions thatenable healthcare professionals to improve clinical outcomes andpatient safety. As a result, Olympus is the trusted partner for
urological needs and will continue to innovate to stay on the cuttingedge in stone management technology.

45

Chapter 02

Our Strategy

Business andGlobal Expansion

Overview and Direction of Medical Business

Our Positions in Focus Areas

GI
Market Size by Disease

GI
Market Size

Market Size

GI-Endoscopy

GI-Endotherapy¥300 – 400 billion¥350 – 450 billion

Market CAGR 4 – 6%Market CAGR 5 – 7%

¥ 650 – 850

Market Share

Market Share

No.1

No. 2

Approx. 55% of
ESD revenue

Approx. 30% of
TSD revenue

GI Endoscopy
Market Size

Olympus
Care Focus

Respiratory

Market Size
Lower Tract¥240 – 300¥160 – 200

billionMarket CAGR 5 – 7%billionMarket CAGR 5 – 7%

No. 2

Approx. 35% of
TSD revenue¥ 100 – 150 billion
Market CAGR 6 – 7%

Catalyst for Growth

Future Growth Driver

GI Endoscopy
EVIS X1
endoscopy system(incl. scopes)

Colorectal Cancer
Gastric Cancer

Computer-Aided
Detection (CADe/x)
Workflow Management
Remote Maintenance

Global expansion
and additionalline-up for EVIS X1
endoscopy system>
 70% share*3 in colonoscopes, gastroscopes, duodenoscopes, and ultrasoundgastrointestinal videoscopeS trong growth for EVIS X1 endoscopy system with U.S. (FY2024) and China (FY2025)with ~70,000 legacy units potential for upgradesD ifferentiated digital solutions and flexible service models will enhance the standard ofcare and provide future monetization opportunities

CAGR FY2024-FY2026:
Mid single-digit %GI-Endotherapy
Market Size

Olympus
Care Focus

Main Sources of Revenue¥350 – 450
billion*3

Catalyst for Growth

Future Growth Driver

ESD Knives
To beunveiled

5-7% CAGR

ERCP, ESD,
Hemostasis andSampling devices

Single-use
cholangioscope

EndoClot
Metal stents

Market Share

No.1

Approx. 15% of
TSD revenue

Note: Served market scale and growth forecast information for this page come from the Company’s research and pertains to data for the U.S., EU5 (Germany, UK, Italy, France, Spain), Japan and China,
Market scale is as of March 31, 2023, Growth forecasts are projected for fiscal year 2023 to fiscal year 2026. This also applies to market data shown on other pages. Sub-segment sales ratios within
ESD/TSD are figures of fiscal year 2023.

Olympus Integrated Report 2023

Est. 60 million
patients affected*1

4-6% CAGR

Colorectal Cancer
Hepato-pancreato-biliary Disease
Gastric Disease

Market Shareleading cause ofcancer-related
death*2

Investments in AI and other digital health solutions will provide continued differentiation, improve patient
outcomes and workflow management

Market Size

Upper Tract

Main Sources of Revenue

2 nd

3 rd

most diagnosed
malignancy*2

Pancreaticobiliary
diseasesleading cause ofcancer-related
death*2¥300 – 400
billion*3

Olympus
Right to Win

Urologynew patients
per year*1

Colorectal
cancerbillion4th

Est.

1 million

StomachcancerTotal served
market for GI

46

Other

Olympus
Right to Win
CAGR FY2024-FY2026:
High single-digit %~ 20% global share*3 with double-digit growth in our ESD/EMR, ENDOCUFF VISION,
EndoClot portfoliosA cquisition*4 of broad metal stent portfolio will significantly accelerate our global
position and options in biliary tract, esophagus, colon, and duodenum treatmentsS ingle-use cholangioscope will enhance clinician optionality

Continued market adoption of new product launches plus the recently announced acquisition*4 of metal
stent portfolio will drive high-single digit growth*1 Source: Epi Database®. Cerner Enviza. Available from wee.epidb.com. Accessed July 11, 2023. 2020 data for U.S., EU5, Japan, and China.
*2 Source: GLOBOCAN 2020
*3 Addressable market, growth and Olympus position based upon publicly available data and Olympus research, and pertains to data for the U.S., Germany, UK, Italy, France, Spain, Japan and China.
*4 Acquisition of Taewoong medical Co., Ltd,: Closure pending
Note: Products or devices presented include future technology which may be pending regional regulatory approval and are not available for sale in all regions.

47

Chapter 02

Our Strategy

Business andGlobal Expansion

Overview and Direction of Medical Business

Urology

Respiratory

Market Size by Disease

Market Size by Disease

Other
Bladder cancer

Est.

1.5 million

74

Up to
%
recurrence rate*2

patients*1

BPH¥400 – 500
billion86 million

Upper Tract
Market Size

Olympus
Care Focus

of men aged
between 51 and
60 are affected*3

Risingprevalence:

40

Est.
%
5-yearrecurrence rate*5

13

up to
% of
population*4

Total served
market for Urology

Main Sources of Revenue¥240 – 300
billion*6

Catalyst for GrowthUpper tract(Kidney, Ureter, & Bladder)

Ureteroscopes &legacy lithotripsy
system fibers

Stone Management

Single-use
ureteroscope
To beunveiled

Soltive SuperPulsed
Laser System#
 1 in reusable ureteroscopes—launch of single-use ureteroscope will expand
clinician optionsP ortfolio of Laser and Ultrasonic lithotripsy systems enables share capture# 1 in Thulium Fiber Laser lithotripsy systems (Soltive SuperPulsed Laser
System) and fibers

Olympus
Right to Win
CAGR FY2024-FY2026*8:
High single-digit %Portfolio expansion in our Soltive platform and the launch of a single-use ureteroscope will provide
sustainable long-term growth

Lower Tract
Market Size

Olympus
Care Focus¥160 – 200
billion*6
5-7% CAGR*7

Main Sources of Revenue

Olympus
Right to Win
CAGR FY2024-FY2026*8:
High single-digit %Cystoscopy

PLASMA+ resection
generator and PLASMA+
consumables

No.1

cause ofcancer death*10

Other lungdiseases and lungcomplications(COPD, air leaks,
et. al).

billion

3rd

Est.

174 million

COPD patients*1

leading causeof death*11

Total served
market for Respiratory

Market Size

Olympus
Care Focus¥100 – 150
billion*6

CAGR FY2024-FY2026:
Mid single-digit %EBUSbronchoscope

Catalyst for Growth

Future Growth Driver

EBUS-TBNA*12
needles

Slim EBUS
scope

6-7% CAGR

Lung Cancer
Benign Pulmonary Disease(COPD)

Olympus
Right to Win

Main Sources of Revenue

EVIS X1 endoscopy
system targets Installedbase of 15K platforms

Single-use airway
management
scopesTo beunveiledL eading market position of >70% share*6 in pulmonary bronchoscopes, endotherapy,
EBUS scopes and EBUS-TBNA needlesS lim EBUS will enable access to suspicious lesions beyond the central /middle lung regions

EVIS X1 platform upgrades and extension of EBUS portfolio which will expand clinical applications thereby
driving sustainable growth for the next few years

Future Growth Driver

Bipolar resection
electrodes

Lower tract (Bladder & Prostate)
Benign Prostate Hyperplasia
Bladder Cancer

Catalyst for Growth¥ 100 – 150

Future Growth Driver

TFL lithotripsy
fibers

5-7% CAGR*7

patients*

1

50%

men affected(including
undiagnosed)*1

Urology stone
managementEst.

3.4 million

Lung cancer

iTind—Minimally Invasive BPH device>150K procedure market
growing at 18% CAGR

Existing market leading position in cystoscopes, resectoscopes, and resection electrodesP LASMA+ system designed to shorter procedure timesE xpanded reimbursement for differentiated MIS BPH device which provides
better clinical outcomes and elevates the standard of care*9*1	Source: Epi Database®. Cerner Enviza. Available from wee.epidb.com. Accessed July 11, 2023. 2020 data for U.S., EU5, Japan, and China.
*2	Source: Recurrence of high-risk bladder cancer: A population-based analysis—Cancer. 2013 Sep 1; 119(17): 3219–3227.
*3	Source: BPH: surgical management.—Urology Care Foundation website. www.urologyhealth.org. Updated July 2013.
*4	Source: Epidemiology of stone disease across the world—World J Urol. 2017 Sep;35(9):1301-1320. doi: 10.1007/s00345-017-2008-6.
*5	Source: Recurrent Nephrolithiasis in Adults: A Comparative Effectiveness Review of Preventive Medical Strategies—Agency for Healthcare Research and Quality (www.effectivehealthcare.ahrq.gov),
published online June 15, 2011.
*6	Addressable market, growth and Olympus’ position based upon publicly available data and Olympus research, and pertains to data for the U.S., Germany, UK, Italy, France, Spain, Japan and China.
*7	CAGR for the total market of upper and lower tract categories.
*8	Urology (including gynecology products) of Olympus’ Therapeutic Solutions Business*9	iTind procedure does not require a permanent implant and preserves sexual function and continence, while reducing the need for a post procedure catheter. Procedure can be done in the MD officesetting.
*10 Source: GLOBOCAN 2020
*11 Source: World Health Organization*12 Endobronchial ultrasound-guided transbronchial fine needle aspiration (EBUS-TBNA).
Note: P roducts or devices presented include future technology which may be pending regional regulatory approval and are not available for sale in all regions.

Note: Refer to the following study on iTind: Chughtai et al., 2020; Amparore et al., 2021; De Nunzio et al., 2021
Implantation of the iTind device may cause pelvic discomfort, blood in urine, painful or urgent urination. In rare cases, the iTind device may cause urinary
tract infection or a sudden difficulty to urinate.

Market leading PLASMA+ resection system plus new minimally invasive BPH device will
deliver consistent growth48

Olympus Integrated Report 2023

49

Chapter 02

Our Strategy

Business andGlobal Expansion

Endoscopic Solutions Business

Strategy, Progress, and Future Measures by Area

Endoscopic
Solutions BusinessBusiness Foundations
	Approximately 70% share of global gastrointestinalendoscope market
	Technological capabilities that led to development ofworld’s first practical gastrocamera and have continued tolead innovation, such as NBI/RDI/TXI/EDOF
	Network of approx. 200 repair and service sites worldwide

Gastrointestinal Endoscope

We strive to elevate the standard of carethrough creating innovative ‘see andtreat’ endoscopy solutions that support
the quadruple aim and optimize healthsystem performance.”Frank Drewalowski (left), Hironobu Kawano (right)

Strategy

Progress and Future Measures	Helping improve the quality of endoscopy withadvanced imaging features such as NBI/RDI/
TXI/EDOF
	Reinforcing market position and growing into key
new markets including computer-aided diagnosis(CAD), and single-use endoscopy	Contributing to strengthening infection prevention,
which is a top priority at every healthcare facility	Continuing to expand sales of EVIS X1 advanced endoscopy system throughlaunch execution in current and future markets such as United States and China
and strong growth with globally 70,000 legacy units potential for upgrades	Expanding sales of ENDO-AID, AI-powered platform for the endoscopy
system in the current markets
	Preparing the launch of next generation EUS system	Developing single-use duodenoscopes
	Improving infection prevention patient safety and efficiency by enhancing
product portfolio and advisory services. Expanding sales of new endoscope
reprocessor

Co-heads of Endoscopic Solutions Division

Results(¥ Billion)

Surgical Endoscope

FY2023 Sales Composition(%)

Company Strategy Target

800

Revenue CAGR

Gastrointestinal Endoscope

Medical Service

Approx. 55%

600

Approx. 30%

60

Surgical Endoscope
Note: Due to rounding, the total may not add up to 100%.
400

40

200

20

Approx. 10%

Main Products
Gastrointestinal Endoscope
0

Surgical Endoscope

2022

2023

2024
(Forecast) *Revenue

461.5

551.8

572.0

(¥ billion)

 perating
O
Margin

28.9

22.7

27.6

(%)

	Developing next generation surgical endoscope
system	Developing and executing of long-term surgicalendoscopy business strategy with consideringcore imaging product, laparoscopic robotics andsmart assisted surgery concept	Launched infrared (IR) compatible light source in Chinese market in the fiscal
year 2022. Expanding sales of advanced surgical endoscopy system VISERAELITE lll in current and future markets (Already launched for Japan and Europe,
China and United States are future markets)	Acquisition of Quest Photonic Devices, which has technology of fluorescenceimaging for medical applications
	Launching preparation on going for ORBEYE (surgical microscope) IR/BL

Medical Service
Strategy

Gastrointestinalendoscopy systems

Surgical endoscopy
systems

Maintenance/
Service

Operating Environment
Gastrointestinal Endoscope

Surgical Endoscope ising case numbers due to aging populations in developedR
countries and higher cancer prevention awarenessWider range of business opportunities accompanying
economic growth and need for training to spread procedure
usage in emerging countries
Higher requirements for quality and efficiency
Increased concern for cleaning, disinfection, and sterilization
processes

 rowing maturity of 3D system market over the mediumGterm and normalization of imaging sensors and datatransferring technology compatible with 4K systems driving
acceleration of full 4K system introduction
Distinctive R&D activities related to special light imaging
technologies being advanced by various companies andpermeating the market

Olympus Integrated Report 2023

Progress and Future Measures

Medical Service

0

(FY)

* Forecast as of August 9, 2023

50

Strategy

80

5%	4K, 3D, and other products differentiated with high resolution
and quality for surgical imaging
	Manufacturing techniques that realize high-mix, low-volume
production	Strong integrated system solution around all endoscopic needs	Comprehensive training facilities and programs

	Profitably grow the business with a comprehensive
Service portfolio tailored around the customer
needs of high equipment availability, predictive
lifecycle costs and smooth and safe operations
	Continuous improvement of customer satisfaction
along all touch points of the equipment lifecycle,
providing a seamless omni-channel experience

Progress and Future Measures
	Develop new service offerings with proven customer value, based on
Optimized repair center network
Expansion of field service
Extended digitally enabled services as customer portals and connected
systems

New digital customer solutions to elevate detection, diagnosis and treatment workflows
Healthcare providers are expected to serve ever more patients for better outcomes at reduced
costs, while navigating complex procedure workflows. Therefore, we are developing new digital
software solutions that drive efficiencies and efficacy across workflows, transform the user andpatient experience during and around procedures, and optimize decision-making for better patient
outcomes. Our new cloud-based software platform will feature integrated workflow management
solutions and will establish market leadership in AI-powered CAD and clinical decision support.

51

Our Strategy

Chapter 02

Business andGlobal Expansion

Therapeutic Solutions Business

Strategy, Progress, and Future Measures by Area

Therapeutic
Solutions BusinessBusiness Foundations

We aim to improve patient outcomesby elevating the standard ofcare through minimally invasive
solutions in targeted disease states.”

Strategy

Highlights	Deliver above-market, profitable growth throughclinically and economically differentiated solutions
	Focus on disease states in specialties where we canhave a market-leading impact	Operate efficiently from inception to sale while
ensuring utmost quality and reliability
	Leverage business development to accelerate
expansion of the product portfolio through external
partnerships, licensing and M&A	Exceeded growth and operating profit targets, delivering positive above
market growth across overall TSD portfolio	Key therapeutic areas strengthened through series of deals andpartnerships
	Further strengthened our position as a global MedTech company byestablishing Olympus Innovation Ventures to invest in pioneering startups
with innovative technologies that improve clinical outcomes, reduce
healthcare costs, and enhance the quality of life for patients

Focusing on Three Therapeutic Areas
To accelerate growth in Therapeutic Solutions Business and enhance our value in minimally invasive treatment,
we will focus on category leadership across three therapeutic areas
Strategy

Gabriela Kaynor (left), Seiji Kuramoto (right)

GI-Endotherapy
Expanding clinically and economicallydifferentiated product portfolio acrossall key categories, including ERCP*2, ESD*3,
metal stents, and hemostasis devices

Co-heads of Therapeutic Solutions Division

Results(¥ Billion)

FY2023 Sales Composition(%)

Company Strategy Target

500

GI-Endotherapy

Revenue CAGR > 5 %Approx. 30%

400

40

300

30

Main Products

200

20

GI-Endotherapy

100

10

0

Urology

Respiratory

Others5020241(Forecast) *Approx. 35%

Urology

Approx. 15%

Respiratory

Approx. 20%

Others2022

2023

Revenue

275.6

318.2

329.0

(¥ billion)

 perating
O
Margin

22.1

20.0

17.0

(%)

Respiratory
ERCP*2 andultrasound products

Flexible
cystoscopes

Bronchoscopes

Energydevices

EMR*4 andESD*3 products

Resection
electrodes

Single-use
aspiration needles

ENT
products

Note: F rom FY2023, gynecology, which were classified in the othersof Therapeutic Solutions Business, have been included in theurology segment of Therapeutic Solutions Business.
Accordingly, we restated figures for FY2022.

Increased procedures driven by aging population and therise of chronic diseaseIntensifying cost pressures on health systems continues todrive focus on both clinical and economic value and require
new care models focused on improved patient outcomes

Olympus Integrated Report 2023

	#1 in reusable ureteroscopes—launch of single-use ureteroscope will
expand clinician options	Portfolio of Laser and Ultrasonic lithotripsy systems enables share capture	#1 in Thulium Fiber Laser lithotripsy systems (Soltive SuperPulsed Laser
System) and fibers
	Existing market leading position in cystoscopes, resectoscopes, andresection electrodes
	PLASMA+ system designed to shorter procedure times
	Expanded reimbursement for differentiated MIS BPH device which
provides better clinical outcomes and elevates the standard of care*7

Delivering market-leading solutions
designed to improve care and prognosis oflung cancer patients through accurate,early diagnosis and staging

	Leading market position of >70% share*5 in pulmonary bronchoscopes,
endotherapy, EBUS scopes and EBUS TBNA needles
	Slim EBUS will enable access to suspicious lesions beyond the central /middle lung regions

Other Therapeutic Areas

Operating Environment

52

Becoming the global leader in BPH, stone
management, and bladder cancer throughcustomer-focused innovation andcompelling clinical differentiation	~20% global share*5 with double-digit growth in our ESD*3/EMR*4,
ENDOCUFF VISION, EndoClot portfolios	Acquisition*6 of broad metal stent portfolio will significantly accelerate our
global position and options in biliary tract, esophagus, colon, andduodenum treatments
	Single-use cholangioscope will enhance clinician optionality

0

(FY)

*1 Forecast as of August 9, 2023

UrologyHighlights

 ngoing shift from open surgeries to minimally invasive treatments
O
that improve patient outcomes and optimize total cost of care
Changes in demand for care with a shift to lower cost caresettings (from inpatient to outpatient) enabled by less-invasive
techniques

Strategy	Expand energy solutions portfolio
	Protect and grow laryngology and rhinology
businesses through investing in solutions that follow
market shifts toward minimally invasive procedures
across the continuum of care

Progress and Future Measures	Expanding launch of POWERSEAL, an advanced bipolar surgical energy
device with strong and efficient sealing of vessels. Further strengthening
the energy device portfolio with THUNDERBEAT and SONICBEAT	Launched CELERIS single-use microdebrider, which is designed for ENTs.
CELERIS eliminates staff disruption and helps to improve patient outcomesby reducing infection risk

*2	Endoscopic Retrograde Cholangio Pancreatography*3 Endoscopic Submucosal Dissection*4 Endoscopic Mucosal Resection*5	Addressable market, growth and Olympus position based upon publicly available data and Olympus
research, and pertains to data for the U.S., Germany, UK, Italy, France, Spain, Japan and China.

*6	Acquisition of Taewoong medical Co., Ltd,: Closure pending*7	iTind procedure does not require a permanent implant and preserves sexual function
and continence, while reducing the need for a post procedure catheter. Procedure canbe done in the MD office setting.

53

Chapter 02

Our Strategy

Business andGlobal Expansion

Customer Voices

Innovative Solutions
to Improve Clinical Outcomes

We are proud to develop innovative solutions along the care pathway that improve clinical outcomes.
Here are two examples of novel solutions we recently introduced. Collaboration with healthcare providers was
essential for the development of these new solutions, and we share their clinical experiences below. In the
future, we will continue to partner with leading healthcare providers to elevate the standard of care and shape abetter healthcare system.

ENDOCUFF VISION

iTind
ENDOCUFF VISION supports the early detection of colorectal cancer. The device
attaches to the distal end of a colonoscope and maximizes the viewable mucosa
during endoscopic therapy by manipulating colonic folds. A single row of flexible
arms evert and flatten folds to provide an enhanced view of the entire colon.

iTind is a non-surgical device supporting the minimally invasive treatment of benign
prostatic hyperplasia (BPH). The temporarily implanted nitinol device is placed in
the obstructed prostatic urethra in a folded configuration. The super-elastic nitinol
struts expand at the 12, 5, and 7 o’clock positions, reshaping the tissue to better
allow urine flow.

	Clinician Benefits: ENDOCUFF VISION has been shown to increase adenoma
detection rates (ADR) by up to 16% over standard colonoscopies*1, improving
physicians’ abilities to detect and treat cancer in its early stages. Early detection
saves lives.
	Patient Benefits: Supports easier colonoscopies with less pain and lessmucosal trauma.
	Sales Regions: U.S., Europe, Asia Pacific	Future Growth Outlook: Double-digit growth (5-Year CAGR: FY2023-FY2028)

Customer Voices

Customer Voices

Dr. Douglas Rex

Dr. Bilal Chughtai

Indiana University Health (U.S.)

Weill Cornell Medicine (U.S.)

I utilize ENDOCUFF VISION in the great majority of routine colonoscopies I do. The
main advantage is that it improves detection. We know from the Kaiser study byDoug Corley that for each 1% increase in the ADR there’s a 3% reduction in the
chance of colorectal cancer and a 5% reduction in the chance of fatal colorectal
cancer*2. There’s also a strong suggestion that there are some improvements inefficiency with ENDOCUFF VISION, and it’s really unusual to have a device that
improves detection and at the same time makes you more efficient*3.”

Dr. Daniele Amparore

NYU Langone Medical Centre (U.S.)

Division of Urology, San Luigi Hospital (Italy)*1	Tsiamoulos ZP, Misra R, Rameshshanker R, Elliott TR, Beintaris I, et al., “Impact of a new distal attachment on colonoscopy performance in an academic screening center,” Gastrointest Endosc.
2018;87(1):280-287.
*2 Corley, D. A., Jensen, C. D., Marks, A. R., et al. “Adenoma detection rate and risk of colorectal cancer and death,” New England Journal of Medicine, 2014;370(14), 1298–1306.
*3	Quote is a complication of Dr. Rex’s comments in Episode 2: ENDOCUFF VISION and Its Benefits - https://medical.olympusamerica.com/products/endocuff-vision#forPhysicians and Episode 3:
Adenoma Detection Rate - https://medical.olympusamerica.com/products/endocuff-vision*4 Webinar: The Art of Unfolding - https://youtu.be/dHmA9mEQZ40

Olympus Integrated Report 2023

The results of our randomized, controlled study demonstrate the safety andeffectiveness of the iTind, a temporarily implanted device, in reshaping the prostate
and allowing urine to flow, thus relieving lower urinary tract symptoms without theneed for patients to go home with a catheter. Most adverse events experienced bypatients during the trial were mild and resolved within two weeks, which is a majoradvantage over other therapies. Additionally, trial results showed that treatment with
the iTind does not compromise sexual function*5.”

Dr. Seth Gross

One of the things I really like and I have seen a tremendous benefit from early on isloop reduction. Loops are one of the biggest challenges when we do colonoscopies.
I have noticed that when I take a loop out with ENDOCUFF VISION, that loop tends
to stay out due to the way the fingers engage the colon. Furthermore, ENDOCUFFVISION allows me to better manipulate the colonic folds for a more carefulinspection. I can really see more of the surface area of the entire colon and identify
subtle polyps that would be otherwise hidden*4.”54

	Clinician Benefits: iTind delivers rapid relief of BPH symptoms. It does not
require cutting or heating prostate tissue, leaves behind no permanent implant,
and avoids complications associated with other treatments.
	Patient Benefits: iTind preserves sexual function and continence and removes
the need for an uncomfortable catheter. It can be placed during a straightforward
procedure in an office or outpatient setting. Patients can recover at home.
	Sales Regions: U.S. and Europe	Future Growth Outlook: Double-digit growth (5-Year CAGR: FY2023-FY2028)

We now have published study data showing iTind device treatment is a reliable
minimally invasive surgical option with minimal safety concerns for extended time
periods. This evidence of clinical durability is important to physicians considering
surgical options for BPH symptom treatment*6.”*5	Trial results published in Chughtai B, Elterman D, Shore N, et al. “The iTind temporarily implanted nitinol device for the treatment of lower urinary tract symptoms secondary to benign prostatic
hyperplasia: A multicenter, randomized, controlled trial” [published online ahead of print, 2020 Dec 26].Urology. 2020;S0090-4295(20)31520-X.
Quote published in https://www.goldjournal.net/article/S0090-4295(20)31520-X/fulltext published December 25, 2020 in Urology, a peer-reviewed medical journal known as the “Gold Journal”*6 	Amparore D, De Cillis S, Schulman C, et al. “Temporary implantable nitinol device for benign prostatic hyperplasia-related lower urinary tract symptoms: over 48-month results” [published online aheadof print, 2023 Jun 23]. Minerva Urol Nephrol. 2023;10.23736/S2724-6051.23.05322-3.
Note: Products or devices presented include future technology which may be pending regional regulatory approval and are not available for sale in all regions.

55

Chapter 02

Our Strategy

Infection Prevention

Organization and Efforts to Increase Patient Safety and Drive Innovation for
Infection Prevention
Olympus and its healthcare partners recognize that
advancements in Infection Prevention (IP) are essential for
improving patient care. Accordingly, Olympus placed
infection prevention as an important pillar of business focus
in 2021, and it gained an increasing presence in theorganization, specifically within R&D and Medical andScientific Affairs (MSA).
We continue to strengthen the business management
for a strong focus on execution to aim for the highest levelof patient safety while increasing transparency andinvestments to grow the infection prevention business.
With the Infection Prevention Business Unit (IPBU),
Infection Prevention Center of Excellence (IPCoE) andInfection Prevention Control (IPC), Infection Prevention
System Development (IPSys) and Infection Prevention
Engineering (IPE), a strong, dedicated team has beencreated for a holistic approach to drive global patient safety
to the next level. Therefore, Olympus advocates thecontinuous development of solutions to further increase
efficacy and compatibility to our aim for maximum patient

safety. In view of patient care, the development of strict
norms for validation around the globe presents anopportunity to actively develop and deliver solutions.
Olympus’ Infection Prevention Business strives toincrease patient safety, provide economically andenvironmentally sustainable reprocessing solutions as wellas pursue untapped organic and inorganic opportunities.
Topline growth is driven by a holistic portfolio globally led by
the Automatic Endoscope Reprocessor (AER) launches andtheir consumables.

infection prevention*, we provide healthcare professionals
with resources and educational materials on “Endoscope
Processing” (up-to-date guidance on safe endoscope
processing for Olympus endoscopes) and “Scientific
Evidence” (state-of-the-art evidence on infection prevention
in endoscopy to help provide information on the latest trends

Training and Support Materials for Daily Practice and Education

Easy-to-use
Compatibility Overview

and guidelines). With a strong focus on quality assurance,i.e., on sampling and culturing, we are committed toproviding information about safe reprocessing practices andelevating the standard of care.
*As of September 2023, the website is not yet available for healthcare professionals in somecountries, including, but not limited to Japan.

Latest News, Publications, Studies, and White Papers

Relevant Microorganisms
in Endoscopy

Quality Assurance to
Monitor the Qualityof Reprocessing

Automatic Endoscope
Reprocessor
launched in EMEA

Regional Manuals
and IFUs

Upcoming Events

Personalized Support

Checklists and Regional Reprocessing Requirements

U.S. Market Transition Progress for Duodenoscopes
Advancing the commitment to our patients and healthcare
providers, Olympus continues to transition duodenoscopesin the United States market to the latest generation, which
provides disposable components designed to improveaccess to the elevator mechanism for ease of reprocessing,aligning with regulatory recommendations. Since the start ofthe program, Olympus has been actively working
with customers to upgrade to the latest generation
duodenoscope.
In order to enhance reprocessing workflow and customer
acceptance, Olympus has coordinated on-site and online
reprocessing trainings with customers and added

clarification to the instructions for use. Over 2,200 customer
training in-services have been performed in the United States
to educate customers and promote safe reprocessing
practices.

Duodenoscope witha removabledistal-end cover

Enhancing Reprocessing Compliance and Patient Safety Through Educational
Materials and Resources
We understand that adhering to guidelines not only promotes
the quality and safety of reprocessing processes, but also
helps us meet the evolving needs of our healthcare
professionals and practitioners in the market. Throughongoing interactions and close collaborations, we aim toencourage data-driven, scientific expertise and knowledge to56

Olympus Integrated Report 2023

drive innovations, enhance our support offerings, anddemonstrate a commitment to stay at the forefront of trends
in the field of infection prevention.
As a trusted partner in infection prevention, Olympus
strives to elevate patient safety for all practitioners inendoscope reprocessing. With the global website for

Details

https://infectionprevention.olympus.com

Olympus Partners with the World’s Leading Experts to Promote Efficient and
Safe Endoscope Reprocessing
A close collaboration with the world´s leading infection
prevention experts, professional societies and key opinion
leaders helps to keep Olympus aware of global
standardization policies, guidelines and laws – making
Olympus a trusted partner committed to promoting quality,
efficient and safe endoscope reprocessing practices.
One of our major achievements has been theestablishment of the annual “Endoscope Hygiene Experts
Forum (EHEF).” Since 2016, this platform has served as apivotal stakeholder exchange platform for infection
prevention, bringing together internationally renowned
healthcare professionals and thought leaders. The primaryobjective of this science and evidence-driven platform is toengage stakeholders in discussions on safe endoscope
reprocessing, fostering innovation, collaboration andknowledge-sharing, while ultimately driving advancements in
infection prevention.
This year’s event primarily focused on the latest studies
and evidence in sampling and culturing, a key aspect toadvance patient safety in endoscopy. Experts from Europe,
the United States and Asia jointly collaborated on a true
cross-continental proposal for an international standard inhygienic monitoring of flexible endoscopes.
Looking ahead, we confirm our commitment to shaping
the infection prevention landscape and driving innovation
with patient safety at the forefront of all our efforts.

Participants of the Endoscope Hygiene Experts Forum (EHEF)

57

Our Strategy

Chapter 02

Business andGlobal Expansion

Innovation

R&D Activities
Basic Policy

Single-use Endoscope
Patient safety andsustainability

Approach to Reusable and Single-use Endoscopy
Prioritize patient safety and product quality, establish
and maintain a healthy and capable organization

Olympus R&D Defined the Vision“Being a leading global and agile R&D organization,
innovating new solutions that elevate the standardof care.”To achieve this vision, three R&D missions wereset following companywide Olympus’ company
strategy:Innovation forgrowthDeliver value creating innovation for products,
procedures, and solutions

Productivity

Ensure predictable and efficient execution basedon a high performing organization

R&D Strategy in Company Strategy

In the company strategy announced in May 2023, R&D is positioned as center of the most important value-creating initiatives
for innovation, which is essential for the Company’s development. We aim to introduce innovation methods that address unmet
needs, make appropriate investments that will drive future innovation, actively pursue strategic partnerships, and accelerate
speed to market.
Customer Driven Innovation
Focus on clinical-driven innovation to address unmet needs, lower
healthcare cost, and build on co-development practice withhealthcare professionals (HCPs):

Strategic Partnership
Pro-actively seek for strategic partnerships through joint venture,
early-stage investments, M&As and co-creation:

	Improve clinical outcomes and the standard of care	Optimize total cost of care	Engage with HCPs not only when collecting voice of the customer(VOC), but in regular feedback loops throughout all development
phases	Seek M&A opportunities to reinforce Olympus’ core technology
competence	Utilize joint venture, e.g. Sony Olympus Medical Solution (SOMED)
Inc. with Sony	Collaboration with third parties to leverage outside technologies
and shorten time to market

Efficient and Capable R&D Organization

Right Investment
Make the right choices for future investments toensure long-term growth:	Execute projects more efficiently through implementation of lean
and agile methodologies and concurrent engineering	Optimize resources and capabilities for each project by creation ofcompetence clusters and mustering the best development teams
from our global R&D engineering resources	Improve capabilities through Olympus’ new Project Management
Office Academy or establishment of Digital Excellence Centers andaugment R&D resource pool by off-shore development capacities

	Follow a strict strategic business planning process to prioritize
project portfolios across divisions and business units	Select cutting-edge technologies with a high potential to drive
customer value, e.g. digitalization, robotics, Artificial Intelligence(AI)/Machine Learning (ML)To advance as a leading global MedTech company, it is critical for Olympus toprovide competitive and innovative products to the markets in a faster cadence.
Shifting from our traditional “all by ourselves” approach to one leveraging alliancesand partnerships will enable shorter development cycles and the optimization in
overall development costs. Our aim is to invest approximately 8.5% of our revenue
into R&D activities in fiscal year 2026. This ratio is competitive and reflects theaverage of our peers in the MedTech industry. Within such budget frame we will
gradually shift investments from sustaining activities to midterm innovation andtechnology development, supporting our clinical unmet-needs driven strategy for
next generation products. In addition, a fraction of the R&D budget will be reserved
for transformative/disruptive technology exploration.

Capitalization of R&D Expenditures
R&D Expenditures in P/L(¥ Billion)
100

75.2

76.9

11.6

12.6

63.6

64.3

(FY) 2022

2023

83.0
16.0

60
40

67.0

20
0

*Growth forecast information comes from the Company’s research.

Areas in which We Plan to Develop (or Launched) Single-use Endoscopes (As of October 2023)

We have established a strategic approach to single-use endoscopy that is aligned with
our goal to be the Endoscopy Partner of Choice, with best-in-class solutions providing
the right scope for every patient, procedure and site of care.
Pioneers in visualization and maneuverability
Best-in-Class
Visualization

Infection
ControlHigh
Maneuverability

Largest installed base in the market
Improves Workflow(on-demand solution)

Durable &ReliableManaging
Costs

GI

Urology

Respiratory

Duodenoscopes/
Cholangioscopes:

Ureteroscopes:

Bronchoscopes:

Planned launch
FY2025

Launched FY2022

Planned launch
FY2025–FY2026

Rhinolaryngoscopes:
Launched FY2024

Spotlight: Product Launch in the U.S.

R&D Expenditures

80

single-use endoscopy is quickly becoming a relevant option
for selected procedures, the market for single-use
endoscopes is expected to grow by 15–18%* annually from2020 to 2030.
As a global leader in endoscopy, we are developing
single-use endoscopes on the strength of our expertise invisualization, maneuverability and ergonomics, as well as ourlargest installed base in the market.

Focus on innovative visualization technology to provide clinicians withthe optimal range of endoscopes to meet their needs:

Become more efficient and predictable in project execution, fully
leveraging our global resources and enhance capabilities and capacity:

Approach toward R&D Expenditures

One of strategic value pools in our company strategy
unveiled in May 2023 is business and global expansion. We
continue to recognize the market opportunity for single-use
endoscopes and complement our reusable endoscopy
product portfolio with single-use endoscopes. Reusable
endoscopes will continue to be the first choice for a wide
range of procedures due to the strong clinical need foradvanced imaging and maneuverability as well as theirfinancial efficiency for hospitals. At the same time, as

2024(Forecast)

E-SteriScope Single-use Flexible
Video Rhinolaryngoscope
Launched in 2023, the E-SteriScope portfoliodelivers options for both diagnostic andtherapeutic procedures complimenting
Olympus’ existing video platform to provide acomprehensive ENT solution.

Single-use scopes help
avoid procedural delays
stemming from scope
availability:
For off-hours whenreusable options are notavailable
For physicians whoneed to quickly scope apatient at bedside

The E-SteriScope is a collaboration with Hunan Vathin Medical Instrument Co., Ltd. Olympus does not handle E-SteriScope in Japan.

Note: Products or devices presented include future technology which may be pending regional regulatory approval and are not available for sale in all regions.

58

Olympus Integrated Report 2023

59

Chapter 02

Our Strategy

Intellectual Property Activities

Intellectual Property Activities

their current statuses and future outlooks. Following ourcompany strategy on Care Pathway Enhancement, we
continue our analyses of business environments arounddiseases from the perspective of the respective entire carepathway (from early detection to post procedure).
This approach allows us to gain insights about care

New Medium-term Plan and Governance System
The Intellectual Property Function has formulated a new
medium-term plan that complements the new company
strategy announced by Olympus in May 2023. We are now
working to implement this plan approved by management.
In 2021, the Intellectual Property Function was
reorganized as part of the Global Legal Organization. It also
has reporting lines to the R&D functions that are the sourceof new inventions. Under this organizational structure, we areworking to enhance our intellectual property (IP) investment
initiatives with the aim of driving innovation over the
medium- to long-term future by optimizing our IP activities
through feedback from regular discussions with the Chief
Technology Officer (CTO). Furthermore, the Global GeneralCounsel reports on activities to the Board of Directors once a
year and the Intellectual Property function takes appropriate
measures as necessary.

Through these measures, we have created a structurethat allows Olympus management to monitor the Company’s
IP activities. In addition, we are working under the
aforementioned medium-term plan to establish a system thatcomplies with the international standard for IP management(ISO 56005), as part of our efforts to strengthen ourgovernance structure.
Board of Directors
Monitoring / ReportingCEO
CTO
Global General Counsel

Discussion and feedback on theenhancement of medium- tolong-term investment in innovation

pathways, especially in contributing to a deeper
understanding of new areas other than diagnosis andtreatment. Our focus now is to reflect the knowledge
obtained through these business environment analyses inhigh-level planning, including disease strategies andtechnology roadmaps.

Enhance Cross-regional and Cross-functional IP Capabilities
The regional organizations of the Intellectual Property
Function work together to pursue global productdevelopment initiatives and projects spanning multiple
regions. We aim to improve quality, streamline management,
and reduce costs globally by standardizing and integrating
work processes and project management systems that havetraditionally varied from region to region.
In addition to training within the Intellectual Property
Function, we are also strengthening IP capabilities acrossmultiple regions and departments by providing IP training

globally to business units and R&D functions. For example,
we provide business units with programs designed toenhance IP literacy, which is vital for strategic planning andother processes. For R&D functions, we offer programs
designed to improve the quality of their invention proposals.
As part of our company strategy, we are also integrating
business processes and regulations to create a governancestructure that will enable companies acquired through M&A
to work organically with Olympus’ Intellectual Property
function.

Intellectual Property Head, Global

Analysis of Patent Score*2 Relative to Competitors

Growth-oriented IP Investment Based on Characteristics ofthe Medical Business Environment

Overall, Olympus is rapidly improving its average patent score (strength) per patent.
Average patent score per patentcapabilities to support the specialized business development
function that we have established in the United States from adue diligence perspective, with a view to future expansion of
our patent portfolio through M&A activities.
Through careful alignment with our strategy and byshifting our investment toward high-growth areas, we arecontinuing to enhance the “strength” of each individual patentand therethrough rapidly closing the gap on our Europeanand American competitors. We will continue our efforts toestablish a patent portfolio that will contribute to Olympus’
sustainable growth.

Average patent score*1 As of March 2023. Excluding Scientific Solutions Business

40*2	An indicator that determines the quality and valueof patents automatically, objectively, andquantitatively.
Source: Calculated using Anaqua’s AcclaimIP Patent
Score method

2021

2022

2023

The Endoscopic Solutions Business has a competitiveedge over its competitors, and we are ensuring that
this will be maintained.

The Therapeutic Solutions Business will accelerate its
efforts to acquire stronger patents so that it can shift tothe upper right of the graph as business scale grows.

FY2023 Endoscopic Solutions Business

FY2023 Therapeutic Solutions BusinessJapan

By Region
Olympus

North America

Using IP Intelligence for Care Pathway Enhancement

Olympus
0.00

In 2022, our dedicated patent analysis team helped more than
20 Olympus units to develop business strategies by providing

Olympus

Total patent score

Therapeutic
Solutions
Business

Endoscopic
Solutions
Business50(FY)

OthersChina

By Business

60

30

Patents Held by Olympus (Approx. 16,000*1)
Others70

Total patent score

Following the transfer of the Scientific Solutions Business in
April 2023, our IP investment focuses on the Medical
Business, especially the Endoscopic Solutions Business andTherapeutic Solutions Business. Our goal is to use patentapplications to maintain our competitive edge in the
Endoscopic Solutions Business area and to establish acompetitive advantage for the Therapeutic Solutions Business,
which has become a growth driver for Olympus. To achieve
our competitive advantage strategically and efficiently, we
have introduced a business process under which decisions
about the allocation of patent application investment are madethrough discussions with the Endoscopic Solutions Businessand Therapeutic Solutions Business, based on an overview of
all projects that have been approved for these businesses
through our strategic business plan. By establishing specialist
units to provide cross-regional management of the patentportfolios of the Endoscopic Solutions Business andTherapeutic Solutions Business, we have also created astructure capable of centrally managing our patent portfolio
on a global basis. In addition, we are strengthening our IP

80

IP landscapes that incorporate IP information into theirbusiness information to provide a comprehensive overview of

5.00

10.00

15.00

20.00
(Billions of U.S. dollars)

Business scale (sales in the medical device segment)

0.00

10.00

20.00

30.00

40.00
(Billions of U.S. dollars)

Business scale (sales in the medical device segment)
Bubble size: Average patent score

60

Olympus Integrated Report 2023

61

Chapter 02

Our Strategy

Business andGlobal Expansion

Medical Business Strategy: Chinese Market
China’s Potential Market*3

Chinese Market withHigh Growth Potential

Approx.

96,000Further development of endoscopic medicine
is expected in the Chinese market.
In this section, we outline Olympus strengths
and describe the market conditions andfuture growth potential.

Providing Sustainable Growth Opportunities
and Total Solutions for the Chinese Market
Since entering the Chinese market about 50 years ago,
Olympus has strengthened its business foundation ahead ofother companies. Through active cooperation with doctors,
hospitals, and academic societies, we have spreadendoscopy and have built relationships of trust withhealthcare professionals. At the same time, we have been
supporting doctors so that they can perform endoscopic
screenings and treatments safely by strengthening ourafter-sales service at our service sites and training support.
With such a strong foundation, our business in China has
grown significantly. Despite short-term fluctuations due to
COVID-19 and other factors, the long-term growth potential
for China is high and we will continue to place this market as
strategically important. Specifically, Olympus continues toinvest aggressively to grow the business through three key
initiatives: 1. Invest in clinician education and training; 2.
Assess unmet needs from Chinese healthcare professionals;
and 3. Local Manufacturing Strategy. In addition to ourcurrent three in-house training centers in Shanghai, Beijing,and Guangzhou, we support the training of endoscopists
across China through our collaborative training centers thatare affiliated with around 20 hospitals nationwide*1. Recently,
we have expanded our services to include hybrid online andon-site training programs, online video educational materials
that explain how to use products and procedures, andlearning support for diagnosing cases using smartphones.
The service expansion has been well received by healthcare
professionals.
By capturing the inputs of local healthcare professionals
and market insights, Olympus is also working on future
product and service developments. In addition to productsales, we are further solidifying our relationship withhealthcare professionals by increasing contact with themthrough various proposals for improving the convenience ofendoscopy rooms based on our unique knowledge.
Olympus is preparing a local manufacturing site in Suzhou,
China, so that we can provide “Made in China” products forthe local market. Furthermore, all seven service centersprovide inspection and maintenance for endoscopic
products, creating an industry-leading system. We willcontinue to achieve business growth not only by launchinghigh value-added and differentiated products, but also by
proposing total solutions that include our services andtraining activities.
Training Centers

4.3 times

Figures Comparing Sales
in Chinese Market for
FY2023 and FY2013

90

60

8

30

4

0

0

SuzhouShanghaiSuzhou62

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Olympus Integrated Report 2023

Hangzhou

Guangzhou

Number ofBeds per Hospital Class(approx. 8,400 facilities)

Class III hospital: Over 500
Class II hospital: 100–499
Class I hospital: 20–99

Class I
hospitals(approx. 16,900 facilities)

Note: Policies by the Chinese government are introduced above.

ES

Increase in the number of endoscopic screenings and treatments: In recent years, demand in China for early diagnosis
and minimally invasive treatments has been increasing due to the growing health awareness among its people. In addition toproviding both of these values, endoscopy can help reduce medical costs, and the number of screenings and treatments is
growing rapidly.
	Installation of new endoscopy rooms: With the Chinese government’s policies and the increase in the number ofendoscopic screenings and treatments, endoscopy rooms are being actively introduced in newly established or expanded
hospitals, leading to the development of endoscopy.
	Shortage of endoscopists: The number of endoscopists per million people remains low (Japan: 282 endoscopists, China: 28
endoscopists*4). In medical institutions, the number of endoscopists are unable to keep up with the growing number ofpatients, making the development of new endoscopists an urgent matter.

T	Gastrointestinal endoscope: Olympus maintains an advantage over local manufacturers. NBI*5 technology and magnifying
endoscopes that meet clinical needs have contributed to the improvement of endoscopic diagnosis and treatment technology
in China. In addition, diagnostic methods based on our technology, represented by magnifying endoscopes and NBI, arebecoming the standard in endoscopy, maintaining our superiority in the market.
	Surgical endoscope: With the rapid development of CMOS technology, local manufacturers are improving their technology
level, and the competitive environment in this market is intensifying.
	GI-Endotherapy devices: The competitive environment is becoming severe for low-end products, where price is more
important than technology and added value. On the other hand, we have established a strong position in the market for
high-end products such as ESD*6 and other advanced procedures, on which we are focusing.

EconomySociety

Beijing
XianClass II
hospitals

	Outlook for the Chinese healthcare market: Despite being affected by COVID-19, CAGR of gross domestic product for thefive years up to 2022 remained at approximately 5%, while total national health expenditure grew at a CAGR of approximately
11% for the five years up to 2021, according to the National Bureau of Statistics. Although the healthcare market has been
affected by lockdowns due to the zero-COVID policy until 2022, the market is expected to grow steadily and significantly overthe medium to long term.
Increased investment in mid-tier and rural hospitals: In China, about 28,000 medical facilities are divided into classes III, II,
and I, etc., and there is a tendency for patients to converge on class III hospitals where medical standards are high. Moreover,there is a significant shortage of rural hospitals, and to resolve this disparity in healthcare, investment in infrastructure is
expected to continue to grow, especially in mid-tier and rural hospitals.

Shenyang

Chinese manufacturing site (image)

(FY)



20

12

(approx. 2,600 facilities)	“Made in China 2025” released in 2015: The Chinese government announced that the country aims to become a true
manufacturing powerhouse, including in R&D, instead of the current one focusing on goods assembly. The goal is to become
one of the top manufacturing nations in the world by 2049. There are 10 target fields, one of which includes biotechnology
and medical device.
	“Healthy China 2030” released in 2016: This policy promotes the health of the Chinese people and building of a healthy
nation. Priority items are early detection and treatment of chronic diseases including cancer, fixing regional disparities in the
medical service area, and expansion of medical institutions. To support this, the aim is also to achieve technological innovationand development in the medical industry.
	“Working plan for improvement of comprehensive capabilities of county-level hospitals” released in 2019: This policy
aims to raise the healthcare standards of 500 county-level hospitals and 500 Traditional Chinese Medicine (TCM) hospitals tothe same level as a class III hospital or a class III TCM hospital.
	Volume-based procurement (VBP): A type of centralized purchasing procurement program initiated by provinces, cities, andother regions with the initial goal of reducing medical costs for high-value medical devices.

Politics

Manufacturing site (under construction)

16

Class III
hospitals*3 As of March 31, 2023

P(%)

Approx.

120

Service Centers

Hospitals with an interest inadvanced medical diagnosis andtreatment, and in increasing thenumber of endoscopic procedures

PEST Analysis in Chinese Market*1 As of September 2023

Chinese Service Centers,
Training Centers and a Manufacturing Site

years

Number of years Olympus
has been expanding in the
Chinese Market andbuilding relationships oftrust with local doctors*2 FY2019 to FY2023

Revenue in China
Ratio of Revenue in China Accounted for by Medical Business Sales
150

50

peopleNumber of healthcare professionals
who have participated in Olympus
training courses over the past five
years*2 (including approximately
75,000 online participants)

Chinese Sales Growth Trends in the Medical Business(¥ Billion)

AroundTechnology*4 Source: Calculated by Olympus using publicly available data
*5 Narrow Band Imaging*6 Endoscopic Submucosal Dissection

63

Our Strategy

Chapter 02

ESG focus
areas

1

Business andGlobal Expansion

Medical Business Strategy: Asian Emerging Markets
Service Centers, a Training Centerand a Manufacturing Site in Southeast Asia

Support for Training of Endoscopists
and Contribution to Strengthening
Medical Infrastructure in Asian Countries

Approx.

19,000Support for Endoscopist Training
in Asian Countries
In 2016, Olympus established a training and education
center in Thailand targeting healthcare professionals inSoutheast Asia. Equipped with lecture halls and training
rooms resembling actual operating rooms and endoscopy
rooms, the center is used not only for Olympus-sponsoredtraining on procedures and products but also for training
sponsored by endoscopy societies in various countries andregions as well as academic societies in various fields ofsurgery. The facility also serves as a forum that contributes
to improvements in patient diagnosis and treatment.
In addition to training associated with the introduction ofSales Ratios by Country in Asia/Oceania Region
H

G

I

F
A

E

Sales Growth Trends in Asia/Oceania in the Medical Business

90
75

C

Approx.

2.9 times

Figures Comparing Sales
in Asia/Oceania Market
for FY2023 and FY2013

10

45

6

30

4

15

2

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

A
B
C
D
E
F
G
H
I

South Korea
Australia
India
Hong Kong
Singapore
Thailand
New Zealand
Malaysia
Vietnam

12

8

0

B

(%)

60

(FY)

FY2023

D

Revenue in Asia/Oceania
Ratio of Revenue in Asia/Oceania Accounted for by Medical Business Sales(¥ Billion)

Image of Thailand

rapidly advance in the years to come, Olympus will contributeto the dissemination and development of endoscopic
diagnosis and treatment through the training of endoscopists.

Published by the United Nations Population Fund (UNFPA),
the State of World Population 2023*1 reported that India’s
population would reach approximately 1.43 billion in April
2023, making it now the most populous nation in the world,
surpassing China. In addition to population growth, thenumber of cancer patients is expected to increase further inthe years ahead due to rapid economic development. Against
this backdrop, the number of endoscopists per million peopleis 282 in Japan and 7*2 in India, meaning that there is a
shortage of doctors who can perform precise diagnosis using
endoscopy, which is essential for the early detection andtreatment of cancer. The survival rate of cancer patients islower than in developed countries. For example, whereas the
five-year survival rate for colorectal cancer patients hasreached about 70%*3 in Japan, it is about 30%*4 in India. In
response to these social issues, Olympus is collaborating withlocal academic societies and hospitals, supporting more than150 endoscopy training programs a year and providing prompt
repair services for medical devices. In the Indian market,
where it is conceivable that the spread of medical devices will0

Number of Endoscopists per Million People*2
Thailand
Malaysia
Vietnam
India
Philippines
Indonesia[Reference] Japan[Reference] US[Reference] China

31
18
11
7
4
2
282
47
28

*1	UNFPA State of World Population 2023: https://tokyo.unfpa.org/sites/default/files/pub-pdf/swop2023-english-230329web_0.pdf*2 Compiled by Olympus using publicly available data*3	National Cancer Center Japan, Cancer Information Service, Aggregation of Hospital-based Cancer Registry Survival Rates https://ganjoho.jp/public/qa_links/report/hosp_c/hosp_c_reg_surv/index.
html (in Japanese, accessed March 16, 2023)*4	World Health Organization. (n.d.). GCO-SURVCAN. Retrieved from International Agency for Research on Cancer: https://gco.iarc.fr/survival/survcan/dataviz/table?survival=5&populations=0&cancers=90

64

Olympus Integrated Report 2023

peopleNumber of healthcare
professionals in Asia/Oceania
region who participatedin training courses in which
Olympus was involved in FY2023*5

Following China’s lead, it is in Asian emerging markets where it isconceivable that the spread of medical devices will rapidly advancein the years to come. We will further enhance training for healthcare professionals
and strive to develop medical technology infrastructure.

India Seen as Promising Follow-on
Market after China

Around

50

India

years

Number of years overwhich Olympus
has been building up its
own sales system inSoutheast Asia*6*5	In addition to those organized by Olympus, total number of participants in online/hybrid/on-sitetraining courses, including those co-sponsored by NGOs, academic societies, and hospitals*6 Established representative office in Singapore in 1975

EVIS X1 and VISERA ELITE III, in fiscal year 2023 we also
conducted a host of activities that included workshops incollaboration with academic societies such as the NPO
MESDA*7. The number of training participants increased dueto the development of online and hybrid training programs.
Issues such as the shortage of endoscopists and surgeons
as well as the room for improvement in terms of medical
technology remain in many Southeast Asian countries. By
providing education and training opportunities for healthcare

VietnamThailandThai Training and
Education Center (T-TEC)
Service Centers

Training Centers

Manufacturing site

professionals at our training centers, we are committed tomaking access to endoscopists more widespread inSoutheast Asian countries and to the development of
medical technology infrastructure. In the years ahead
supporting the training of endoscopists, focusing on early
diagnosis, minimally invasive treatments, and thedissemination of procedures using endoscopy, we willcontribute to improvements in patient QOL.

View of a MESDA hybrid workshop on laparoscopic liver surgery at
T-TEC (far left) and surgery demonstration live-streamed via Zoom (left)*7 MESDA: Mekong Endo-Surgery Development Association（NPO）	An all-Japanese project to help train Asian endoscopists supported by aconsortium with members such as Japan’s Ministry of Economy, Trade andIndustry, Medical Excellence JAPAN, the Japan Society for Endoscopic Surgery,and medical and other Japanese universities as well as by a consortium
consisting of Japanese companies operating in Thailand.

COLUMN

Public-Private Collaborative Activities:
Resolving Social Issues and Contributing to Medical Development in Asian Countries
In India, Thailand, Vietnam, and other parts of Asia, the increasing number of cancer patients has
become a social issue, and demand for endoscopic screenings, which are essential for the early
detection and treatment of cancer, is expected to increase. In contrast, there is a shortage ofdoctors with the advanced knowledge and skills required for endoscopic screenings. Olympus
has joined the Ministry of Internal Affairs and Communications of Japan projects in India,
Thailand, and Vietnam to support the specialists training local doctors, to verify the effectivenessand dissemination of AI-assisted colonoscopy, and to contribute to the development of thehealthcare environment in the Asian region.
From November 2022 to March 2023, Olympus, in collaboration with CYBERNET SYSTEMS
CO., LTD., conducted research on the effectiveness and future use of the AI diagnostic support
system EndoBRAIN-EYE*8 at Cho Ray Hospital and 108 Hospital in Vietnam. In addition,
physicians from Japan’s Showa University Northern Yokohama Hospital and Shizuoka Cancer
Center provided expert guidance to doctors at major Vietnamese hospitals. They trained doctors
in techniques for detecting diseases and differential diagnosis with colonoscopes using
EndoBRAIN-EYE, and they also instructed on how to train the next generation of endoscopists.
*8	AI endoscopic diagnostic imaging support software that assists physicians in diagnosing lesions by alerting if a polyp or other lesion isdetected using regular colonoscope images. (Manufactured by CYBERNET SYSTEMS CO., LTD.)

Details

Kick-off meeting of the Vietnam
project

Training in Ho Chi Minh, Vietnam

Activities in India: https://www.olympus-global.com/news/2020/nr01866.html
Activities in Thailand: https://www.olympus-global.com/news/2021/nr02181.html
Activities in Vietnam: https://www.olympus-global.com/news/2022/nr02442.html

65

Chapter 02

Our Strategy

Strategic M&A

Strategic M&A

Strategic M&A

M&A Examples / Odin Medical (Odin Vision) Ltd.

M&A Strategy and Policy
We continue to strengthen our product portfolio capabilities
through tuck-in M&A opportunities in our priority businessesof GI, Urology and Respiratory in existing disease states andattractive high‐growth adjacencies, which in turn contributeto improving patient outcome through comprehensive
solutions.
Olympus’ Business Development team is responsible for
identifying and pursuing M&A opportunities that align with
our Care Pathway Enhancement strategy.
Business Development works closely with business unit

and divisional leaders to execute on the strategy defined in
the annual Strategic Business Planning (SBP) process. We
identify potential targets that can help Olympus expand its
product offerings and reach new markets. Once a target is
identified, a deal team is formed to conduct due diligenceand integration planning to ensure that the deal will add
value to Olympus. The team also oversees the post-merger
integration process to ensure that the acquired company is
successfully integrated into sales and operations and deliverson the business plan.

M&A Process
The overall process for M&A begins with our strategy. Oncea year, during the SBP process, we place targets on a long
list and as deals are reviewed, the list is shortened
accordingly. Of course, this process is dynamic and while wemight use SBP to help chart our targets for a year, we also
use strategy as a filter for opportunities that arise.
Within this process we view a deal from many strategic
angles including Olympus strategy, divisional strategy, andbusiness unit strategy.

When we are confident the deal falls within strategic
expectations, the Deal team is put together to manage due
diligence, Integration Planning, and Post Merger Integration(PMI) from a multi-functional perspective including financial
criteria. At the end of the process, PMI is governed by across-functioning steering committee and we report to theGroup Executive Committee (GEC) at regular intervals about
the project, to look at KPIs and make sure the deal has beendelivering on the business plan that was promised.

Example of the Deal Execution Structure—Phase from LOI to Closing

Deal Owner(CSO/CTO/Division Heads, etc.)
External Advisors
Deal Leader

Integration Manager

Due diligence/
Integration related functions
Business, Legal, Compliance, IP,
Corporate Integration, Communications,
Finance/Tax/Accounting, HR, QARA,
Medical Affairs, R&D, Operations and others

66

Olympus Integrated Report 2023

We acquired Odin Medical Ltd. a cloud-AI endoscopy
company, for up to GBP 66 million in upfront andmilestone-based payments in December 2022.
Odin Vision was founded by a team of eminent
clinicians and AI experts from the world-renowned
Wellcome / EPSRC Centre for Interventional andSurgical Sciences (WEISS) at University College
London (UCL). Odin Vision has its mission to create
digital technology that drives a new era of healthcare
supporting doctors to deliver higher quality careleading to improved patient outcomes, better patient
experience and increase value for healthcare providers.
Odin Vision is aiming to create a paradigm shift in theway AI is integrated into the endoscopy suite tosupport clinical procedures such as colonoscopy andesophagogastroduodenoscopy with their innovative
cloud-AI platform.

The acquisition is a strategic component of ourbroader digital strategy to improve patient care bytransforming clinical and procedural workflows. We
plan to develop and establish Digital ExcellenceCenters (DECs) for the development of digital solutions
around the world, beginning in London where theacquisition of Odin Vision has laid the groundwork. In
addition to its portfolio, Odin Vision brings renowned
AI and software expertise and development capabilities
that synergize and further accelerate Olympus’ digital
health strategy. DECs will be located at current
Olympus R&D sites in Hamburg, Boston and Tokyo,
with the possibility of
expanding to Silicon
Valley and Tel Aviv at alater stage.

M&A Examples / Arc Medical Design Ltd.

About Arc Medical Design Ltd.
We acquired Arc Medical Design Ltd. in August 2020. We converted our current
exclusive distribution rights of ENDOCUFF VISION to a full acquisition of the
ENDOCUFF family of products.

By acquiring Arc Medical Design, we assumed worldwide responsibility fordesign, manufacturing, distribution and business strategy for the productportfolio with an immediate effect. It will further enable the company to improve
clinical outcomes, reduce overall costs and enhance quality of life for patients.

Approver (CEO)Business Leader/Legal/BD/Corporate
Integration/Corporate Planning

Aim of the Acquisition

Aim of the Acquisition(Consulted by GEC, Report to Board of Directors)

Deal Steering Committee

About Odin Medical Ltd.

Financial Advisor, Legal Advisor,
Corporate Integration,
Corporate Due Diligence and others

Situation after M&A
FY2023

	FY2023 Sales growth: About 40% YoY.
	Sales of main product “ENDOCUFFVISION” performed well at approximately
40% YoY, particularly strong in the U.S.
	In addition to Europe and the U.S., westarted sales in Hong Kong, Australia,
New Zealand, Thailand, and Vietnam in
fiscal year 2022. We began evaluating
doctors to start sales in India, Malaysia,
Singapore, and South Korea in fiscal
year 2023.

FY2024 –FY2024 Sales growth outlook: Double digit growth
Strategy:		 Develop sales plan and prioritized account targeting tools.
		 Simplify claims and training for socialization andstandardization.
		 Expand reimbursement and impact models to increase
market penetration.
		 Develop clinical value strategy for ENDOCUFF VISION and AI.
		 Develop scientific publication roadmap and Implement claims
and improve messaging.

67Chapter 02

Our Strategy

Care Pathway
Enhancement

Care Pathway Enhancement

Care Pathway Enhancement

Enhancing the Care Pathway for BPH

Olympus continuously aims to improve its solution capabilities to advance the Quadruple Aim: improving
clinical outcomes, lower the total cost of care, and enhancing the experience of both the patient and careteam. We are focused and steadfast on elevating the standard of care all along the care pathway from early
detection, diagnosis and staging, treatment, and ultimately in post procedure care.

Our focus

Provide minimally invasive treatment solutions for urological disease

The disease
state

Benign Prostatic Hyperplasia (BPH) or enlarged prostate causes the prostate to press against the urethra, causing chronic
and often troublesome lower urinary tract symptoms that can severely affect quality of life for men over the age of 50.
Approximately 100 million patients are affected globally with a significant number of patients unwilling to undergo surgery
due to the significant risk of side effects.

Our solutions

Expectations for patient care are shifting

Early
Detection

Characterization,
Diagnosis & Staging

Treatment

OfficeWe will focus on enhancing patient carepathways where Olympus can elevatethe standard of care.”
Early
Detection

Characterization,
Diagnosis & Staging

iTind is the first and only
FDA-cleared MIS
temporary implant thatdelivers rapid relief of
BPH symptoms*7,
preserves sexual function
and continence*7, andreduces the need for a
post-procedure catheter*7

Post
Procedure

Treatment

Surgery

iTind
Cystoscope

Existing Olympus solution

PLASMA+SOLTIVE &EMPOWERLess invasive treatment options are moreaccessible to a greater number of patients

Unmet need addressed by new Olympus solution

Healthcare Value Proposition of Olympus Solutions
Patient	iTind offers clinically proven symptom
relief while greatly reducing the risk ofloss of sexual function or incontinencewith straightforward office procedure*8

Clinician/Provider	In the United States, CMS*9 increased reimbursement
for iTind in 2023 when performed in HOPD*10 or ASC*11
	iTind supports reduced procedural time and lower total
cost of care when compared to alternative therapies

Enhancing the Care Pathway for Lung Cancer
Our focus

Improve ability to detect lung cancer at an early stage to accelerate lung cancer
diagnosis and time to treatment

The diseasestate

When detected at an early stage, lung cancer is highly treatable. However, many lung cancer nodules are not properly
diagnosed, as the majority of new lung cancer lesions first appear in the middle and peripheral regions of the lung. These
areas are difficult to access using current techniques. As a consequence, many cancers are diagnosed at a late stage when
they are more difficult to treat and have increased mortality.

Enhancing the Care Pathway for Colorectal Cancer (CRC)
Our focus

Advance early detection and enable minimally invasive surgical (MIS) procedures toimprove outcomes and lower the cost of care

The disease
state

CRC impacts ~ 2 million people each year; it is the third most diagnosed malignancy and the second leading cause ofcancer-related deaths in the world*1. Effective CRC screening programs are important as early stage CRC often has no
symptoms, and has a high mortality if not detected early. Once detected, open surgery is an expensive option with downsides
for the patient. In contrast, the MIS procedures offer shorter recovery times and improved efficiencies for the provider.

Our solutions

Early
Detection
EVIS X1 endoscopy
systemCharacterization,
Diagnosis & Staging
CADe*2ENDOCUFF
VISIONEVIS X1 supports the early
detection of CRC.
Additionally, it may be usedwith a variety of advanced
imaging technologies andendotherapy devices fortreatment.

Existing Olympus solution

DualKnife J
knife

CADx
(Computer-aided diagnosis)

Unmet need addressed by new Olympus solution

EZ Clip
hemostasis clip

EndoClot
PHS

Designed to enhance safety andeffectiveness of early-stage cancer
treatment and bleeding control during
and post procedure

Healthcare Value Proposition of Olympus Solutions
ENDOCUFF
VISION

ENDO-AID CAD

EndoClot*1 GLOBOCAN 2020
*2 Computer-aided detection/diagnosis*3 ADR = adenoma detection rate

68

Olympus Integrated Report 2023

Patient
	Early Detection: Contributes to greatly improved
survival	ESD*4: A MIS procedure to treat early-stage
cancer that uses DualKnife J and other speciallydesigned devices, reduces recovery time andimproves patient comfort
	EVIS X1 RDI with EndoClot supports reduced riskof post-procedure bleeding

Early
Detection

Characterization,
Diagnosis & Staging
Central /MiddleTreatment

Periphery

Treatment

ForcepsSnaresDesigned to increase ADR*3
which may lead to early detection

Our solutions

Clinician/Provider
	CADe and ENDOCUFF VISION support
improved ADR*3. Research shows increased
ADR contributes to the prevention of CRC
and reduces the risk of fatal outcomes*5
	ESD procedures reduce or eliminate hospitalovernight stays reducing costs to payors*6*4 ESD = endoscopic submucosal dissection*5	Corley, D. A., Jensen, C. D., Marks, A. R., et al. “Adenoma detection rate and risk of colorectal cancer and death,” New England Journal of
Medicine, 2014;370(14), 1298–1306.

EBUS scopes and TBNA
needles enablevisualization and real-timesampling of lung nodules.
Slim EBUS scopes
extend this capability to
the middle and peripheral
regions of the lung where
the majority of lesions are
first foundBronchoscope

Existing Olympus solution
Unmet need addressedby new Olympus solution

EBUS
EBUS-TBNA

Slim EBUS

Bronchoscopy
enabled therapies:
RF & microwave ablation

Improves the ability to detectlung cancer at an early stage

Healthcare Value Proposition of Olympus Solutions
Patient
	Less invasive procedure with fewer adverse events
than trans-thoracic approach	Potentially identify more lung cancers at an earlystage for which therapy has better outcomes	Very low risk of pneumothorax or overnight stay*12*6	https://medical.olympusamerica.com/endoscopic-submucosal-dissection Patients typicallyexperience shorter hospital stays, faster recoveries, reduced pain and less expense after
ESD compared to open or laparoscopic surgical procedures.2,3,4,5 Abdelfatah MM,
Barakat M, Ahmad D, Ibrahim M, Ahmed Y, Kurdi Y, Grimm IS, Othman MO. Long-term
outcomes of endoscopic submucosal dissection versus surgery in early gastric cancer: asystematic review and meta-analysis. Eur J Gastroenterol Hepatol. 2019 Apr;31(4):418-424.
Doi: 10.1097/MEG.0000000000001352. PMID: 30694909., Hu J, Zhao Y, Ren M, Li Y, Lu X,
Lu G, Zhang D, Chu D, He S. The Comparison between Endoscopic Submucosal Dissectionand Surgery in Gastric Cancer: A Systematic Review and Meta-Analysis. Gastroenterol Res
Pract. 2018 Feb 18;2018:4378945. doi: 10.1155/2018/4378945. PMID: 29670651; PMCID:
PMC5835246. Draganov PV, Aihara H, Karasik MS, Ngamruengphong S, Aadam AA,
Othman MO, Sharma N, Grimm IS, Rostom A, Elmunzer BJ, Jawaid SA, Westerveld D,
Perbtani YB, Hoffman BJ, Schlachterman A, Siegel A, Coman RM, Wang AY, Yang D.
Endoscopic Submucosal Dissection in North America: A Large Prospective Multicenter
Study. Gastroenterology. 2021 Jun;160(7):2317-2327.e2. doi: 10.1053/j.gastro.2021.02.036.
Epub 2021 Feb 19. PMID: 33610532. Yang D, Draganov PV. Clinical Updates in Colorectal

Clinician/Provider	Increased diagnostic confidence that theprocedure will lead to a correct diagnosis	Higher sample collection success rateusing real-time EBUS visualization*13

Endoscopic Submucosal Dissection. Clin Gastroenterol Hepatol. 2022 Feb;20(2):269-271.
doi: 10.1016/j.cgh.2021.09.025. Epub 2021 Nov 12. PMID: 34774551.
*7	Porpiglia et al. Second-generation of temporary implantable nitinol device for the relief oflower urinary tract symptoms due to benign prostatic hyperplasia: results of a prospective,
multi-centre study at 1 year of follow-up. British Journal of Urology International. 2018.
*8	https://pubmed.ncbi.nlm.nih.gov/30382600/ BJU Int. 2019 Jun;123(6):1061-1069. doi:
0.1111/bju.14608. Epub 2018 Nov 28*9 CMS = Centers for Medicare & Medicaid Services*10 HOPD = Hospital Outpatient Department*11 ASC = Ambulatory Surgery Center*12	Pneumothorax rates in CT-Guided lung biopsies: a comprehensive systematic review andmeta-analysis of risk factors Br J Radiol. 2020 Mar; 93(1108): 20190866*13	As evidenced with current EBUS and EBUS-TBNA technology
Note: Products or devices presented include future technology which may be pending regional
regulatory approval and are not available for sale in all regions.

69

Chapter 02

Our Strategy

Intelligent Endoscopy
Ecosystem

Intelligent Endoscopy Ecosystem

Intelligent Endoscopy Ecosystem

Intelligent Endoscopy Ecosystem Enabled by New,
Modern Software Platform and Business Model

As the MedTech leader for endoscopy-enabled care, we are harnessing the opportunities enabled
by digital technologies to bring about an Intelligent Endoscopy Ecosystem, for the benefit of our customers
and patients, and to reach the quadruple aim of healthcare.

To Meet Healthcare Challenges, We Will Elevate Our Unique Capabilities
The rise in chronic diseases and our aging populations
require the healthcare community to overcome the challenge
of better outcomes for more people, with better care teamand patient experience, at lower cost.
Many needs around endoscopy have remained the samefor a long time. For example, gastroenterologists who
perform lifesaving procedures are constantly looking todeliver improved clinical outcomes but are faced with anincreasing cognitive burden due to a rising number ofprocedures with growing administrative workload. At thesame time, hospital administrators are looking to manage
staff shortages which is a reality in many markets today.

We believe there is an opportunity for significant
progress in “intelligent” endoscopy, leveraging digitalization
and automation. Data and connectivity, powered by AI,
enable intelligent insights to help address clinical andoperational needs.
We will elevate our unique capabilities from advanced
visualization to intelligent cognitive support, from precision
treatment to intelligently guided precision treatment and fromvalue added solutions to intelligent insights and solutions.
With the Intelligent Endoscopy Ecosystem, we envision afuture where care givers focus more of their valuable time on
helping more patients in need of care.

Today, Olympus provides best-in-class endoscopy products
and services with strong stand-alone value propositions.
However, we believe that the value potential of integrating
the Olympus portfolio by data and AI is significantly higher
than the sum of its individual elements.
Our advanced digital endoscopy ecosystem will be
driven by a state-of-the-art software platform, meetingcurrent and future clinical and operational needs,
empowering clinicians and healthcare administrators toelevate patient care standards. With the latest coretechnologies, including AI, it offers actionable insights fromdata throughout the patient journey, ensuring efficient andoptimal outcomes for Olympus customers.
It will also enable a transition from a “Hardware only”
business model, which depends on longer upgrade cycles,
towards a model where continuous software enhancements
can provide “always-on innovation” via over-the-air upgrades
and on-demand apps on the Olympus platform.
As a result, patients and caregivers can benefit throughmore precise detection, diagnosis and treatment.

NeedsIntelligent Endoscopy Ecosystem

Hospitals are looking for solutions to solve long-standing clinicaland non-clinical needs related to the Endosuite
Clinical Needs

Deliver improved
clinical outcomesin environment
with high cognitive
burdenMinimize
excessiveadministrative
work

Software Applications

Non-clinical Needs

Manage patient
safety risks andensure strong
quality checks

Managefinancials inenvironment of
increasing costpressure

Manage staff
shortages thatdrive high turnoverand inexperienced
care providers

Workflow
Management

CAD and Real-time
Procedure Support

AI Clinical andOperations Insights

Other
Applications

Olympus Modules

Olympus Modules

Olympus Modules

Olympus Modules

Partner Modules

Partner Modules

Partner Modules

Partner Modules

Maintain highstandards fordata privacy andinformation
security

As industry leaders, Olympus will shape the future by providing best-in-classsoftware and products in an Intelligent Endoscopy Ecosystem
Technological advancements makeit possible to solve long-standing
unmet needs of the Endosuite70

Olympus Integrated Report 2023

Data-driven and automated workflow solutions cancontribute to efficiency and improved patient safety by
reducing human factor risk. We also believe that this cancontribute to both retaining HCPs and attracting nextgeneration HCPs due to a combination of easier and morescalable training, as well as the reduced mental burden
at work.
Furthermore, non-clinical hospital staff can benefit
through automated administration services. Data-driven
inventory management, investment optimization services andtransparent asset management are just some examples that
could contribute to more efficient endoscopy programs.
Olympus is uniquely positioned to shape the future and help
customers to derive endoscopy insights by collecting andleveraging data.
The Intelligent Endoscopy Ecosystem will increase thepotential and realize the full synergetic value of the broad
Olympus endoscopy portfolio.

By integrating and connecting products acrossthe patient pathway and operational workflow,
we can improve clinical outcomes and efficiency

Standardized user
experience acrossinterfaces
Combination of
Olympus-owned andpartner-developed
modules

Operating Software Platform

Short innovation
cycles, with updates
no longer limited byhardware

IOT and Advanced Connectivity Solutions

Clinical and operations
data collected andanalyzed across the
hospital

Olympus Hardware Devices and Services

Endotower

ScopesEndotherapy
Devices

Devices and services
connected with
operating software
platform
Reprocessing

Services71

Our Strategy

Chapter 02

ESG focus
areas

4

Evolving Our Corporate Culture

An Evolution in Corporate Culture

How We Are Bringing a Healthy Organization to Life at Olympus

As part of our transformation, we are aiming to realize a Healthy Organization. We are working tocomprehensively improve our corporate culture by looking at both the needs of the Company and theday-to-day experiences of our employees. To evolve our corporate culture in which each and every employee
can perform at their best, which is the foundation for achieving sustainable growth, we are implementing
various improvement activities globally based on the results of our Core Values Survey, etc.

In our aim to realize a Healthy Organization, we are working
toward building a globally common HR system and develop
talent. We are implementing a variety of initiatives, such as toplace the right people in the right positions, to foster a

Initiative

Talent and Succession
Management

Our Ideal Corporate Culture
We define our aim for a Healthy Organization as “Committed
to delivering Olympus’ Purpose by creating a working culture
where everyone is empowered to perform their best” and we
consider there to be six dimensions necessary to bring it to
fruition. Based on the Core Values Survey results, we are

specifically prioritizing areas such as collaboration acrossgeographical regions and teams, empowerment of
employees to maximize their potential, improvement of worklife balance, and fostering a culture that encourages
challenge.

Healthy Organization1
Inspirational
Leadership
Leaders present
a clear strategy
and guide
Olympus future

2
Collaboration
Collaboration
acrossdepartments andgeographicalregions, and therealization of open
and constructive
discussions

External,
Customer
Orientation
Identify customer
and market trends
and respond to
future businessneeds by valuing
new ideas

4

Employee Enablement
and Global Learning
OffersPeople-centric
34

Global Leadership
Competencies andLeadership Development

1“Committed to delivering Olympus’ Purpose by creating a working
culture where everyone is empowered to perform their best”

Purpose-driven

1

1

4

Global Levelling

4

5

Empowerment

Encouraged to
Challenge

Work-Life
Balance2

Foster a culturethat values
diverse ways ofthinking, andencourages
taking on new
challenges

Creation of
attractive work
environments andprioritizing
employeewell-being

Global Performance
Management
Harmonization

Everyone isallowed to makedecisions, takeresponsibility andchart their own
career path

6

4

Globally Integrated HR
Management System

75 %

48 %

75 %

46 %

66 %

51 %

I have a goodunderstanding ofOlympus priorities
and goals

There is good
cooperation
among functions,businesses, andregions in Olympus

At Olympus, wesolve customer andpatient challenges
with passion andpersistence

At Olympus,
we are able toact decisively

People withdiverse perspectives
and backgrounds
are valued at
Olympus

There are no
significant barriers
at work to doing
my job well2

* The data in the table above is a summary of the Core Values Survey results conducted between August 23 and September 10, 2021.
Approximately 86% of employees responded.

Priority theme

45Standardization of
Basic Work Procedures

Our Core Values (Guidelines for Day-to-Day Activities)

The six dimensions necessary to achieve a Healthy Organization and Our Core Values
72

Olympus Integrated Report 2023

1

Overview and Vision of the Future

Progress and Future Measures upport sustainable corporate management
Sand strengthen executive talent pipeline byplacement of the right talent in the rightpositions
Build global succession pools and develop
talents to ensure we have the right global
talent with the right experience in the rightplace ompleted implementation of talent and succession
Cmanagement process for executive officers and global
division/function heads (GDFH), and annually revise anddiscuss talent pipeline
Work on talent and succession management andsystematic assessments, as well as talent development
in positions below GDFHs, including identification anddevelopment of young and diverse talent with highpotential upport targeted leadership development asSwell as talent and succession management
by defining ten most crucial leadershipcompetencies based on Olympus strategy
Build leadership skills and mindsets to enable
leaders to execute business strategy and key
priorities, and contribute to a Healthy
Organization

 lobal Leadership Competency Model (GLCM) rolledGout, and from April 2023 GLCM is evaluated inperformance appraisal
Global 360 Feedback launched in May 2022, with 500
participants in first year
GLCM Module Program as first global leadershipdevelopment program scheduled for launch reate a culture and environment whereC
people are inspired and empowered to growprofessionally as well as personallyProvide learning offers that support building
key business skills across Olympus anddeliver them globally in a consistent manner xtend access to external learning content platform
Efrom EMEA and APAC regions to Japan, China, and theAmericasOffer workshops on global/cross-culture collaboration(since 2020) and career development (starting 2023)
Continue to work on harmonization of learning/training
processes and learning management system larify the vertical and horizontal relationshipCof jobs across Olympus by assigning levels tomanagement jobs according to the size of therole of each position

 armonization of leadership compensation structures
HApply the programs and policies gradually as they are
introduced

 ne global approach to performanceO
management to enable placement of the righttalent in the right positions on a global scaleFostering an environment where feedback is
encouraged, enabling everyone to learn andgrow, enhancing our ability to achieve ourgoals ompleted performance and goal management system
CPreparing and enabling managers to conduct their
mid-year and year-end meetings
Focus on enabling our culture of patient safety throughthe inclusion of a quality focused goal for all employeesImplement HR management systems thatwere dispersed by region into one unified
global HR system to support HR operation
globally omplete performance and goal management systemCas well as learning management system for quality andregulatory trainings
Continue efforts to expand integrated talentmanagement system such as recruiting, careerdevelopment, etc.

 ccelerate the fostering of a culture ofA
empowerment and challenge, and placementof the right talent in the right positions as aGroup
Align personnel standardization at a Groupand global level and reward individual
performance in a fair and consistent manner ompleted the change to a job-based HR system thatC
determines treatment based on the size of eachindividual’s job responsibilities, regardless of age orexperience
Revision of Japan’s performance management systems
has been completed by aligning with globally common
performance management systems

 ave a consistent set of practices in place at
HOlympus that shape the way we work
together and create a Healthy Organization
Provide in-person training and e-learning todevelop globally common ways of working
and strengthen everyone’s ability to execute acilitated global enablement sessions and awarenessF
campaigns with additional measures to further embed
across the whole company in planningDeliver “ability to execute” program from 2020 to 2023,
with approximately 6,600 leaders and employees
participating in total

4

Japan HR Reform

1

culture of empowerment and challenge, and to conductvarious training to strengthen leadership and execution
competencies to develop talent for global success.

2

3

4

5

6

73

Chapter 02

Our Strategy

ESG focus
areas

4

Evolving Our Corporate Culture

Our Core Values Survey

Promotion of Diversity, Equity and Inclusion (DEI)

Based on the results of the Core Values Survey, an employee
engagement survey conducted in 2021, Olympus isdeveloping measures globally from both the top-down andbottom-up perspectives. Companywide initiatives haveincluded site visits by executive officers, optimization ofdecision-making processes, visualization and follow-up of
the current status of employee work-life balance, andenhancement and optimization of global working guidelines.

At the same time, the survey results showed that there
were notable differences between regions, so we are taking
action in each region to improve the issues identified fromthe survey. In November 2022, we conducted a Core Values
Survey Check-in (interim survey) to review the current statusof our organization and reflect on the improvement activities
and plans already in place. We will use the survey results tocontinuously improve our culture.

Results for 2021 Survey (Worldwide)

+4 %

(+3%)

78 %

64 %

67 %

(+4%)

59 %

Work-Life
Balance

63 %
2018

2018

2021

2021
UnderstandOur Core Values

Positive aboutengagement

Collaboration*No data for 2018

+6 %Positive aboutease of working

Encouraged
to Challenge*These are the results of responses
to the same questions as on P.72

+6 %+3 % External,+7 %Customer
Orientation

Empowerment

Follow-up Measures for Our Core Values Survey in Japan

Main Action Plans in Japan

Soft Aspects

Hard Aspects

Communication

Structure, system, and environment

Respect for all people, regardless ofdifferences in age, gender, race, sexual
orientation, gender identity, socioeconomic
status, ethnicity, (dis)ability, nationality andculture, language, religion, opinions, politicalstance, experiences, and career backgrounds.

The opportunities for growth thatthe company provides are notaffected by the differences thateach employee may have. Olympus
provides equitable opportunities foreveryone to perform at their best.

Employees are accepted as they
are and feel safe to express theiropinions freely.

Global DEI Strategic Priorities and Initiatives
In engaging with DEI, we have positioned four key themes as global
strategic priority areas*1.
1. Gender and Life Priority: Further support for women employees and allcare takers*2 that may have time constraints due to personal life events.
2. Nationality and Culture: Increase diversity and ensure equitable accessto opportunities regardless of nationality, culture or language skills.
3. Career and Experience: Enhance employee professional experienceand broaden the perspective of team and organizational coverage.
4. Inclusive Environment: Ensure an environment where everyone canspeak up freely and collaborate effectively.
In line with the four focus areas outlined above, Olympus provides globally
standardized DEI training for its managers, as well as opportunities for

employees to apply for global positions, while also providing language
learning programs. We plan to gradually roll out these new measures anddeploy them globally.
In addition to these initiatives, Olympus holds global events. On
International Women’s Day (March 8, 2023), around 400 employees fromJapan, the Americas, EMEA, China, and the APAC region simultaneously
participated in an online event with the themes of establishing personalbrands and childcare participation of male employees. We plan tocontinue holding a variety of global events in the near future.
*1	DEI efforts concerning other pillars, including age, race, sexual orientation, gender identity,socioeconomic status, ethnicity, (dis)ability, religion, opinions and political stance are all
equally important in Olympus. Further increases in diversity and ensuring equity in eachpillar are to be driven in each region, taking regional features into account.
*2	Care takers are people need to work and at the same time taking care of their children,
parents, families, etc.

Benefits from DEI
Financial Value

Process Innovation

Product Innovation

Increased productivity
and creativity
in the processes

Development andimprovement of
products and services

Employee Experience

External Evaluation

Improvement in employee
engagement andwork environment

Recognition from customers,
capital markets, anddiverse talentNon-financial Value

Company Strategy

Create acommunication
space

Improvecommunication
quality

Changethe place ofcommunication

Motivation andgrowth support
systems/structures

Flexible working
environments

Collaborative
workingenvironments

1-on-1workshops

Facilitatecoaching

Introduce
communication
tools

Job-based HR system
Career development
supportWorkingenvironment systems
ICT enhancement

New officeenvironments

Olympus Integrated Report 2023

Inclusion

Our DEI Vision
At Olympus, valuing people with diverse perspectives and backgrounds isa part of Our Core Values. Olympus respects the differences in ourpeople’s age, gender, race, sexual orientation, gender identity,socioeconomic status, ethnicity, (dis)ability, nationality and culture,
language, religion, opinions, political stance, experiences, and careerbackgrounds.
Olympus continuously works to build an inclusive culture andequitable systems, where everyone, including the communities we serve,
are accepted for who they are, with equal access to opportunities. We
believe that Diversity, Equity, and Inclusion are equally important, and only
when DEI becomes integrated into our daily work, will people be their true
self, release their full potential, and perform at their best.
In an inclusive and equitable environment, our people with theirdiverse backgrounds will better understand our customers’ varied needs
and expectations, thereby creating new value by exchanging theiropinions between each other, and developing solutions together toultimately contribute to Our Purpose of “Making people’s lives healthier,safer and more fulfilling.”

Approx.

74

Equity23 %Percentage of women in
management role globally*3*3 As of March 1, 2023

Details

30 %Achieve target
by FY2028

External Valuereports, as well as encouraging open and cross-departmental
communication using tools for team building, effective meeting
management, etc. We have also expanded our systems to
support individual career development, such as improving theassignment of roles regardless of age and other attributes byintroducing a new HR system (extension of the job-based HR
system), as well as enhancing internal recruitment andstrengthening career development support. Another ongoingproject aims to promote collaboration through the developmentof new office environments and the creation of flexible work
styles that allow individuals or teams to choose the right styleand location according to the purpose and content of theirwork. Moving forward, we will aim to improve employee
engagement by periodically monitoring the progress of theaction plans and the extent of improvements being made.

Diversity

Internal Value

The Core Value Survey results showed that “policies are clearlycommunicated by management and a relationship of trust isbuilt” and “each employee understands Our Core Values andapplies them through their actions” scored highly in Japan.
However, we found issues in areas such as “fostering a culturethat encourages challenges without fear of failure,” “enhancing
communication and collaboration,” “building talentmanagement and structures to support motivation and growth,”and “creating a highly productive and comfortable working
environment.” To address these issues, we are implementing
improvement measures based on survey responses from
employees and feedback from each organization.
For example, we are working to increase the quantity andimprove the quality of communication in the organization byholding regular 1-on-1 meetings between leaders and direct

Japan as an area of focus and will continue to promote DEI
there. In June 2023, we established the new position ofChief Diversity, Equity, and Inclusion Officer (CDO). The CDO
is responsible for overseeing and driving initiatives under our
DEI strategy at the global level.

Definition of Diversity, Equity and Inclusion

Inspirational
Leadership

(+9%)

69 %

Olympus has been implementing its global Diversity, Equity,and Inclusion (DEI) strategy since April 2023. Our ESG
strategy, which was announced in May 2023, states thepromotion of DEI as one of the materiality topics and setstargets relating to promoting the advancement of women on
a global level. In particular, we have set individual goal for

Company Strategy
Approx.

70 %Rate of eligible men in Japantaking parental leave*4

100 %Achieve target
by FY2026*4 Olympus Corporation

Notice Regarding Newly Established Chief Diversity, Equity and Inclusion Officer: https://www.olympus-global.com/news/2023/nr02512.html
Employment: https://www.olympus-global.com/csr/social/employment/
Diversity, Equity and Inclusion: https://www.olympus-global.com/csr/social/diversity/
General Employer Action Plan based on the Act on Promotion of Women’s Participation and Advancement in the Workplace: https://www.olympus-global.com/csr/social/diversity/woman.html
General Employer Action Plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children: https://www.olympus-global.com/csr/social/diversity/actionplan.html

75Chapter 02

Our Strategy

Evolving Our Corporate Culture

Activities to Improve Productivity

Our Development and Learning Offers Support Professional Growth andGlobal Collaboration

To Enable Investments andInnovation for Long-term Growth

At Olympus, we encourage our people to build and expand
their professional and personal skills while learning with andfrom each other. Our Global Development Portfolio focuses
on strengthening Leadership Competencies, on fosteringcollaboration and connection to Our Purpose and Our Core
Values, and on opportunities to grow professional andbusiness skills and adopt Healthy Organization practices
and habits.
To date, approximately 6,600 Olympus employees haveparticipated in our foundational global business, execution
and leadership skill building program. About 500 leaders
have joined our global 360 feedback process.
At Olympus, we value the diversity of languages andcultures of employees in each country and region. We also
believe that smooth international communication is essential
as a global MedTech company. In Japan, we areundertaking the Global Communication Skill Strengthening
Program to improve English proficiency and support
cross-cultural understanding. Since its launch in 2021, a
total of more than 6,700 employees have participated.

6,600
Participants since thelaunch of the global
program in 2020*

6 ,700Global TOM*—Improve Our Capability to Deliver on Our Mission,
Targets and Ambition

500
Leaders who participatedin Global 360
Feedback*

Participants since the launchof the Global Communication
Skill Strengthening
Program in 2021**As of March 31, 2023

While striving to “make people’s lives healthier, safer andmore fulfilling,” Olympus has laid out a clear value creation
strategy to drive sustainable growth. To better equip the
global organization to drive Business and Global Expansion
as well as absorb Strategic M&A initiatives, the Chief
Strategy Officer decided to launch an effort to review
Olympus’ global operating model and will establish a newteam to build capabilities that continuously ensureorganizational readiness in line with our strategic priorities ofour company strategy. Our desire is to create an operating
model that – building on our strategic imperatives – ensurestransparent and fast decision-making across functions,divisions and regions, but also facilitates efficient resource
allocation and ongoing capability development.
The review of our operating model is structured in four
themes, each focusing on a distinct set of activities:

Operating Model Design & Governance: We aim to further
strengthen and clarify roles and responsibilities, structuresand governance in our global matrix. By doing so, we
facilitate better collaboration and decision-making along ourthree axes, divisions, functions and regions.
People & Culture: We identify levers to setup capabilities tostrengthen talent, culture and performance mindset toenhance our operating model.
Enterprise Architecture & Systems: We enable our global
operations by gradually enhancing, harmonizing andsimplifying our tech stack.
Productivity, Efficiency and Processes: Building on our
optimized operating model, we aspire to simplify ouroperations to rigorously execute and unlock capital.
* TOM = target operating model

COLUMN

Employees Set Performance Goal Focused on Patient Safety
In the fiscal year ending March 31, 2024, we introduced a new global approach to performance management known as
MyPerformance. This approach, along with global talent and succession management is operated through performance andgoal management system ensuring a consistent experience for employees across the globe. As part of the MyPerformance
process, employees propose their own performance goals linked to the Three Guiding Principles—Patient safety andsustainability, Innovation for growth, and Productivity—outlined in our company strategy, and are evaluated in terms of theirachievements in each of these areas. As patient safety and regulatory compliance are top priorities for Olympus, we haveestablished a common global goal designed to ensure that all employees prioritize the pursuit of quality in the fiscal year
ending March 31, 2024. The global goal ensures the focus on patient safety in everyone’s day-to-day activities, ensuring
compliance with all applicable laws, regulations, and industry standards, as well as understanding and adhering to all policies
and procedures that govern their work. In addition, every employee, regardless of their function or role, will also identify andreport any potential safety risks, hazards, or instances of non-compliance and will actively participate in related initiatives.

1

Fine-tune continuously our global
operating model to unleash ahigh-performing organization

COLUMN: Progress in Global Business Services (GBS) initiatives

We are entering the new phase of expanding
the scope of GBS and promoting the optimization of
the transferred operations.

Examples of job-specific goals relating to patient safety
IT
Quality inspectors
Uptime support
Legal and compliance
Commercial functions
Customer service
Finance
Territory manager
Repair technician
Manufacturing operator

76

Olympus Integrated Report 2023

Ensuring that systems are safe and patient data is not compromised.
Inspecting and assessing product safety, and providing feedback that leads to improvements.
Providing guidance to clinical users on how to use products.
Ensuring legal compliance and business protection.
Ensuring we follow the correct process in winning new business, providing checks and balances.
Expanding customer outreach, following regulatory guidelines in dealing with product defects and complaints.
Maintaining high reporting standards, including accuracy, clarity, and compliance with requirements.
	Giving the clinician confidence that we own the responsibility for our products, all steps taken to ensurecompliance is followed.
Following the correct processes to protect patients.
Manufacturing products in line with regulatory requirements and processes.

2

Facilitate resource allocation andunlock capital to invest into strategic
priorities of our company strategy

Yasutoshi Fujiwara
Global Business Services
Vice President

In 2018, Olympus launched GBS in Europe ahead of other regions. Since then, we havebeen rolling out GBS worldwide. Over the past five years, the transfer of Finance, HR,
Purchasing, Sales Support, and Supply Chain Management activities have beenaccomplished and a solid foundation for GBS has been built in Olympus. Now we areentering the new phase of GBS. In partnership with the quality assurance and regulatory
affairs (QARA) team, we are focusing on making patient safety the top priority. In 2023, weare moving forward with using the GBS platform for some phases of the QARA complainthandling process to improve the operations and achieve worldwide efficiency andstandardization. Going forward, we will continue to strengthen our global collaboration,
further expand the scope of GBS, and promote the optimization of the transferred
operations, which will lead to the enhancement of corporate value.

77

Chapter 02

Our Strategy

ESG focus
areas

5

Carbon Neutral Society and Circular Economy
Check 2

Carbon Neutral Society andCircular Economy
Olympus is fully aware that recent climate change,
ecosystem deterioration, and water risks brought about byexcessive environmental impact and pollution are issues weneed to address promptly. Therefore, we are committed to
Carbon Neutral Society and Circular Economy as one of themateriality items. We also set targets of achieving carbon
neutrality*1 with respect to greenhouse gas (GHG) emissions
from our site operations (Scope 1 and 2*2) by 2030 andusing electricity generated 100% from renewable energy forour site operations by 2030. In addition, in May 2023, weformulated and announced a target of achieving net zero*3
GHG emissions throughout the entire supply chain (Scope 1,
2, and 3*2) by 2040. Check 1
To achieve this target, we continue to improve production
efficiency and implement further energy-saving measures, aswell as gradually replacing the energy used in our site

Targets and Achievements for GHG Emissions and Renewable Energy Rates

operations*4 with renewable energy sources by 2030 toaccelerate initiatives to reduce GHG emissions. We also
recognize the importance of environmental impact reduction
across the supply chain and continuously implement
measures to develop environmentally conscious products,
improve logistics efficiency, set voluntary reduction targets incooperation with suppliers, and support decarbonization
initiatives.
*1	Carbon neutrality refers to reducing GHG emissions from site operations (Scope 1 and 2) and
offset an amount equivalent to the remaining GHG emissions using carbon offsets, thereby
achieving zero emissions overall.
*2	Scope 1: Direct GHG emissions by combustion of fuels in our sites.
	Scope 2: Indirect GHG emissions from on-site use of electricity, heat or steam supplied byother companies.
	Scope 3: Other, indirect GHG emissions (excluding Scope 1 and 2).
*3	Net zero means reducing GHG emissions (Scope 1, 2, and 3) as much as possible (90% ormore) in line with the latest climate science (1.5°C scenario) and using credits derived fromcarbon sequestration and removal (such as afforestation and CO 2 capture and storage) for an
amount equivalent to the residual GHG emissions (less than 10%) to achieve a balance.
*4 Excluding rental properties, such as sales sites.

Major Environmental Activity Results in Fiscal Year 2023
Primary Policy

Enhancement ofenvironmental
governancesystemTargets

Improveeffectiveness andefficiency of theEnvironmental
Management
SystemPromotion ofenvironmental
management

FY2023 Achievements and Results

FY2024 Targets

 evelopment ofDlong-term environmental
targets to reducegreenhouse gas
emissions throughout
the supply chain

 etting of 2040 net zero target
S(Scope 1, 2, and 3)
Check 1

 ormulation of a plan toF
reduce greenhouse gas
emissions throughout
the supply chain andimplementation of
measures aintenance ofM
ISO 14001 certification

 aintenance of ISO 14001 certification forM
global major manufacturing sites (Europe,
Americas, Australia)
Maintained ISO 14001 multi-site certificationof 10 sites in Japan and 3 sites in Asia
Conducted internal audits for administrative
functions of 8 sites in Japan and 2 sites inAsia nsure appropriate
E
response to indicatedpoints in internal
environmental audit andISO 14001 certification
external audit

	Inspection on the waste management
process and operational improvements ateach site in Japan	Education on waste and chemical substancemanagement at Olympus SurgicalTechnologies America (138 persons)	Continue to improve the related internal
rules for products and facilities

 xpand target sites forE
the environmental/
health and safety risk
assessment
Continue to improve theenvironmental regulatorycompliance process for
products and facilities reated new Eco-Products*5C(3 new, bringing the total to 668)

 evelop environmentallyD
conscious design
mechanisms to improve
resource recycling in
product lifecycles

 ontinue to improveC
the process tocomply withenvironmental laws
and regulations

 nhance inspection forE
compliance status withenvironmental laws andregulations
Education forenvironmental laws andregulations

Product-related
initiatives

 reate Olympus
C
Eco-Products

 ontinue to createCproducts that areenvironmentallyconscious and tailoredto businesscharacteristics

Facilities-related
initiatives

 reenhouse gasGemissions: achievecarbon neutrality(FY2031)Renewable energy
rate: 100% (FY2031)
Emissions volume
intensity: improveby 1% year-on-yearWater use intensity:
improve by 1%
year-on-year ontinue to implementC
improvements such as
improving manufacturing
processes, saving ofenergy and material
resources andintroduction ofrenewable energy, etc.,
in accordance with local
characteristics

Environmental
risk reduction
activities

Environmental
initiatives
throughout the
product life
cycles78

Measures

Olympus Integrated Report 2023

*5	Including product creation results in pastbusinesses (Imaging Business, Scientific
Solutions Business, etc.)

 reenhouse gas emissions: reduced byG
45.7% (compared to the FY2020)
Renewable energy rate: 71.9%
Check 2
 missions volume intensity: improved byE
0.8% (compared to FY2022)
Water use intensity: improved by 8.6%
(compared to FY2022)

 reenhouse gasGemissions: reduce by
55% (compared to
FY2020)Renewable energy rate:75%
Emission recycle rate:85%
Improve water use
efficiency (comparedto FY2023)

Internal (Scope 1, 2) Results
In fiscal year 2023, continual improvements in manufacturing,energy-saving measures, updating Company cars toenvironmentally conscious cars, and renewable energy use
were implemented at its sites around the world. Aomori
Olympus installed static electricity removal sheets in its air
conditioning equipment to improve operating efficiency and istaking action to reduce energy losses by installing air flow
meters to identify air leaks and implementing countermeasures.
KeyMed (Medical & Industrial Equipment) Ltd. in Europe
switched some of its company vehicles used for sales activities
to electric vehicles. In April 2022, we converted 100% of theelectricity used at major development and manufacturing sites
in Japan (10 sites) to electricity derived from renewable energy
sources. In April 2023, we did the same for Olympus SurgicalTechnologies America (Gyrus ACMI, Inc.) at its Redmond site in
the United States. For broader renewable energy use, studies
are focusing on widespread adoption, economic feasibility, andother factors in each country. The renewable energy use ratevis-á-vis the total electric power consumption has been
increasing substantially. Olympus Corporation participates in
the Carbon Neutral LNG Buyers Alliance as a part of new
initiatives to reduce GHG emissions, and has started to
introduce carbon neutral LNG*6 to the Hachioji Facility.

External (Scope 3) Results
The Olympus Group ascertains and calculates greenhouse gas
emissions throughout the entire supply chain for each category
and is taking action to reduce greenhouse gas emissions in theentire supply chain through green procurement, improvementof logistical efficiency, development of environmentallyconscious products, and other measures.
Scope 3 greenhouse gas emissions account for
approximately 90% of all Olympus Group supply chain
greenhouse gas emissions (Scope 1, 2, and 3). Among Scope
3 emissions, the percentages from purchased goods andservices (category 1), capital goods (category 2), and upstream
transportation and distribution (category 4) are high.
In fiscal year 2023, we address purchased goods andservices (category 1) by analyzing and evaluating the impact of
CO2 for each supplier with which we do business and requested
the cooperation of suppliers in Japan with measures to set
environment targets with the aim of achieving carbon neutrality(targets in line with the 1.5°C target of the Paris Agreement) andcurtail greenhouse gas emissions. In the future, we will continue
our efforts to ascertain and manage greenhouse gas emissions
throughout the supply chain and collaborate with suppliers to
set voluntary reduction targets, support decarbonization efforts,
and reduce greenhouse gas emissions.

*6	Carbon neutral LNG: A type of LNG that offsets GHG generated in the process from the extraction
to the burning of natural gas with carbon credits created by environmental conservation projects.

Targets

Results
FY2020

FY2021

FY2022

FY2023

FY2024FY2031

Greenhousegas emissions(Scope 1, 2)—

Reduced by
0.7% comparedto FY2020

Reduced by
11.1% comparedto FY2020

Reduced by
45.7% comparedto FY2020

Reduce by
55% comparedto FY2020

Achievecarbon neutrality

Renewableenergy rate

18.5%

18.5%

23.3%

71.9%

75%

100%

Response to Climate Change (Information Disclosure in Line with TCFD Recommendations)
Olympus recognizes that climate change is a serious issue that threatens the global environment, as well as having grave
implications for the Group’s business activities. Based on this awareness, we announced our endorsement of the
Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)
in May 2021. According to the TCFD’s Recommendations, we will disclose climate-related
financial information in a timely manner.
Olympus endeavors to reduce the environmental
impact from the entire value chain, including
product development, procurement, manufacture, logistics, sales,
and repair. Under the CEO and Chief Human Resources Officer(CHRO), who are the executive officers responsible for theenvironment including responses to climate change, the Human
Resources Head, who manages the environment, health, andsafety (EHS) functions, oversees matters related to EHS for theentire Group. In addition, an officer responsible for theGovernanceenvironment, social and governance (ESG) activities was appointed
and set targets for the ESG field including GHG emissions in themedium- to long-term business plan to promote ESG initiatives by
the Group. Under the Environmental Health and Safety Policy
formulated by the Human Resources Head, the EHS division
created an environmental action plan for the entire Group in linewith the ESG targets set in the medium- to long-term businessplan, monitors the status of progress of that plan, and makes
continuous improvements. In response to progress reports, the79Chapter 02

Our Strategy

ESG focus
areas

5

executive officers responsible for the environment (the CEO andCHRO) give instructions for any improvements required. The Boardof Directors monitors the status of the implemented climatechange measures while receiving related reports as necessary.
Also, to reinforce the commitment of management to the ESGs
and climate change initiatives, 20% of the executive officers’
performance-based stock remuneration, a part of our long-term
incentive remuneration, is linked to the evaluation results of an
external ESG evaluation organization.
Environmental Management Structure
CEO/CHRO(Executive Officers Responsible for the Environment)

Human Resources Head(Environmental Management Officer)

EHS Management Division
Regional Headquarters
Japan

Americas

Europe/Middle East

Asia/
Oceania

Subsidiaries/
Facilities

Subsidiaries/
Facilities

Subsidiaries/
Facilities

Subsidiaries/
Facilities

Olympus identifies climate change-related risks andopportunities for the short-, medium-, andlong-term periods by using scenario analysis. The influence ofclimate change on our business activities is analyzed based on the
2˚C scenario: RCP2.6, IEA B2DS (holding the increase in the global
average temperature to below 2˚C above pre-industrial levels) andthe 4˚C scenario: RCP8.5 and IEA CPS (where the increase isassumed to be up to 4˚C above pre-industrial levels), presented by
the International Energy Agency (IEA). We identified that the majorrisks within the short term (one to five years) would be the factory
operation suspensions or supply chain breakdowns due to natural
disasters; and the risks within the medium to long term (10 to 20
years) would be an increase in business costs due to theintroduction of carbon taxes and tighter GHG emission regulations.
Although such climate change risks could affect our corporate
strategy and financial plan, we assume that the scope of influence
would be limited. For example, the geographical location of ourfactories in terms of natural disasters, such as typhoons, can beclassified as a physical risk. We confirmed that our factories are at
low-risk locations and a business continuation plan for each site
was created in case of emergency. As a supply chain risk, we haveexperienced closures of sales sites due to typhoons and flooding
Strategy

4˚C
scenario

across the world in fiscal year 2023. Still, the influence was limited.
We also expect an increase in operational costs due to carbon
taxes, etc. as a transition risk. However, the percentage of energy
costs in the factories among overall business costs is small, and,
therefore, the impact on our business will be limited.
During the company strategy and business
Risk Management
plan formulation stages, Olympus identifies
and evaluates risks that have the potential to significantly impact
the Group’s business operations. These risks include regulations
relating to the environment including climate change, technology
and other transition risks, and physical risks resulting from natural
disasters.
Identified risks are evaluated and prioritized by eachorganization based on the degree of impact if the risk materializes
and the possibility of occurrence, and based on the results, weformulate single-year and multi-year business plans to manage therisks. Regarding risks relating to environmental laws andregulations, the quality control function monitors developments
concerning those product-related environmental laws andregulations. The environmental division of each company monitors
regulatory developments relating to their business sites, and eachperiodically evaluates the status of compliance, and takes
measures as necessary.
To address those risks that could have a particularly
substantial impact on business operations, we periodically monitor
the status of organizational risk management and report the results
to the Group Executive Committee and Board of Directors. The
CEO receives reports on the results of risk managementmonitoring, and if measures are ineffective, reviews action plans.
Olympus has set targets of achieving
Indexes and Targets
carbon neutrality with respect to GHG
emissions from our site operations (Scope 1 and 2) by 2030 andusing electricity generated 100% from renewable energy at our site
operations by 2030. In order to contribute broadly to thedevelopment of a decarbonized society, we believe that it isnecessary to take action concerning not just the Group’s own GHG
emissions, but all GHG emissions throughout the supply chain. In
light of this, in May 2023, we set and announced a target ofachieving net zero GHG emissions throughout the entire supply
chain (Scope 1, 2, and 3) by 2040. This target is in line with the high
1.5˚C goal set as a challenge target under the Paris Agreement.
Achievements during fiscal year 2023 include a 45.7%
reduction in GHG emissions compared to fiscal year 2020 and a
71.9% introduction rate of electricity derived from renewableenergy. To achieve our targets for 2030, we will improve
manufacturing and introduce renewable energy at sites around theworld and continuously implement measures to develop
environmentally conscious products, improve logistics efficiency,
set voluntary reduction targets in cooperation with suppliers, andsupport decarbonization initiatives.

Environmental
Changes

Risks

Opportunities

Measures

Stronger
regulatory action
for a low carbon
societyTransition risks: Increase in procurement and operating
cost* due to carbon tax, carbon emissions trading andstronger regulatory action on greenhouse gas emission byvarious countries and decline in market competitivenessdue to inability to meet stricter regulations on reduction ofgreenhouse gas emissions from our products

Rise intemperature andincreased
extreme weather
eventsPhysical risks: Supply chain disruption caused by
growing scale of natural disasters, such as typhoons,floods, etc. (suspension of deliveries from suppliers and to
customers due to suspension of distribution bases, repair
centers and sales branches, etc.)

 eduction of businessR
costs by energy-saving
measuresImprovements inmarketcompetitiveness bydevelopment ofenvironmentallyconscious productsImprovements inevaluation bystakeholders

Improvements in energy
efficiency
W ider use of renewable energy
Diversification of suppliersSupport for setting voluntary
greenhouse gas emission
reduction targets anddecarbonization activities incollaboration with suppliers
Environmentally conscious
design in the product/service
design & development stage

Responsible Supply Chain
Olympus aims to strengthen supply chain management (SCM) to ensure stable delivery of products andservices for patients. In our ESG strategy announced in May 2023, we have identified supply chain risk
mitigation and resilience as one of our top priority, and we strive to create and strengthen good relationships
with our suppliers through fair, just, and transparent transactions.

Supply Chain Policy
We share our “Expectations of Suppliers” and “Green Procurement
Standards” in writing with our suppliers in Japan, asking them tocomply with laws and regulations, social norms, and environmental
considerations. We conduct an annual web-based supplier survey inJapan with 30 CSR questions to raise suppliers’ awareness of issues
related to the Sustainable Development Goals (SDGs).
Our Global Procurement ESG strategy consists of threemateriality topics as part of the focus area of Responsible Supply
Chain:
1. Improve supply chain risk mitigation and resilience byimplementing a multi-tier supply chain risk monitoring solution.
2. Enhance social (human rights) commitment in SCM: This includes
creating and publishing a Global Supplier Code of Conduct as well
as monitoring ESG risk in our supply chain.
3. Environmental Supplier Management: We will begin creating abaseline of CO2 emissions from our suppliers, as well as asking
suppliers to set science-based targets for our Science Based
Targets initiative (SBTi)*1 certification.

Supplier Survey and Improvement Activities
Once a year Olympus conducts a web-based survey of our major
suppliers around the world with whom we have ongoing business inJapan. The survey covers 123 questions, of which 24 are related tosustainability management information, sustainability initiatives, andbusiness continuity plans (BCPs). In fiscal year 2023 we added sixquestions relating to climate change, including actual greenhousegas emissions. In fiscal year 2023 the survey was conducted on 667
companies*2, including overseas suppliers. Responses were received
from about 86% of companies. If the survey results require additional
follow-up, an on-site audit is conducted with required corrective
actions to adhere to our “Expectations of Suppliers.”

Expectations of Suppliers
1. Compliance with Laws, Regulations, and Social Norms
2. Health and Safety
3.	Fair and Impartial Trade
4.	Ensuring Quality and Safety, Delivery, Fair Pricing, andStable Supply
5. Environmental Considerations
6.	Ensuring Information Security andthe Appropriate Protection of Information
7.	Promoting Social Contributions
8.	Promoting CSR Activities Internally and Among Suppliers*1 Information on Science Based Targets is available at https://sciencebasedtargets.org*2	This number is smaller than the 774 companies in fiscal year 2022 due to the removal of
business partners related to the transfer of the Scientific Solutions Business* The calculated financial influence was approx. 600 million yen/year based on the carbon tax figures in the World Energy Outlook 2020 by the IEA (2020).

Details
Details

80

Environment: https://www.olympus-global.com/csr/environment/
Environmental Health and Safety Policy: https://www.olympus-global.com/csr/effort/activity/principle.html

Olympus Integrated Report 2023

3

Responsible Supply Chain

Carbon Neutral Society and Circular Economy

2˚C
scenario

ESG focus
areas

Procurement: https://www.olympus-global.com/csr/social/procurement/
Expectations of Suppliers: https://www.olympus-global.com/csr/procurement/
supply.html
Human Rights: https://www.olympus-global.com/csr/social/human-rights/

Key Evaluation Items in Supplier Survey for
Initiatives with Suppliers
Evaluation

Criteria Details

Management
information

Corporate information, financial condition

Sustainability

Compliance with laws, regulations, and social norms
Protection of human rights (child labor, forced labor,
inappropriate low-wage labor)
Protection of worker rights (labor standards, occupationalsafety and health)Protection of the environment (CO2 emissions, waste
discharge, water usage, environment-related chemical
substances)
Personal and confidential information protection,
intellectual property protection

BCP

Business continuity strategy, manufacturing site
information, contact information during emergencies anddisasters, confirmation of supply chain, confirmation of
employee safety

Environmentand quality

Acquisition of ISO 14001, ISO 9001, and ISO 13485
Procurement and process management (5Ms [materials,
methods, measurement, machinery, manpower], change
information, noncompliant treatments)

Delivery/Cost

Production plans, progress and distribution management,
cost reduction activities

SystemComputer security

Human Rights Initiatives
Olympus engages in global activities in the area of human rights due
diligence in compliance with the UN Guiding Principles (UNGPs) on
Business and Human Rights. In fiscal year 2022, Olympus
implemented a human rights impact assessment that covered theentire Olympus Group and established a system to understand the
management status of human rights issues within the Olympus
Group in fiscal year 2023. This system aimed to confirm the
management status and efforts at each company and implement
continuous improvements with regards to the 12 items including
freely chosen employment that includes the elimination of forcedlabor, child labor, working hours, human treatment, nondiscrimination and non-harassment, freedom of association, and theutilization of emerging technologies such as AI. In fiscal year 2024,
Olympus plans to investigate the current state of affairs at eachcompany in the Olympus Group according to this procedure.
Furthermore, in accordance with its Human Rights Policy, in fiscal
year 2023, Olympus deployed e-learning globally to introduce
Olympus’ responsibility to respect human rights in its supply chain
and to give an overview of the laws and systems in each country.
Those who enrolled in the e-learning program learned about
examples of human rights violations that could occur in the Olympus
Group and at suppliers. In Japan, 8,998 employees enrolled in thise-learning program (enrollment rate: 94%). Olympus will continue tocarry out regular educational activities to improve the awareness of
its employees regarding human rights.

81

3
Our
Setup
This chapter introduces messages fromnewly appointed directors andOlympus’ current corporate governance initiatives.

Contents
84
96
99
100
101

82

Corporate GovernanceDirectors
Compliance
Communication with Shareholders and Investors
Risk Management

Olympus Integrated Report 2023

83

Chapter 03

Our Setup6

ESG focus
areas

Corporate Governance

Characteristics of Corporate Governance at Olympus
Governance
Structure

Outside Directors on
the Board of Director*

Corporate Governance Structure (As of June 27, 2023)

Women onthe Board of Directors

General Meeting of Shareholders

Non-Japanese on
the Board of Directors

Election/Dismissal

Board of Directors

77

A company witha Nominating
Committee, etc.

3 Directors, 10 Outside Directors
Chairperson: Independent Outside Director

Decision on Proposal of
Election/Dismissal of
Directors%(10 / 13)

2

*All of outside directors are independent.

5

/ 13

Appointment/
Dismissal/ 13

Appointment/
Dismissal

Nominating
Committee

Compensation
Decision

Appointment/
Dismissal

Compensation
Committee

Audit

Appointment/
Dismissal

Audit
Committee

ReportElection/
Dismissal

Quality Assurance and Regulatory
Affairs (QA&RA) Committee

Efforts to Realize Highly Transparent and Effective Management
The Chairperson of the Board of Directors and the chairperson of statutory committees (Nominating Committee, Compensation
Committee, and Audit Committee) are independent outside directors
The Chairperson of the Board of Directors participates in the Group Executive Committee as an observer
Pre-briefings to independent outside directors, information sharing and mutual exchange of opinions through meetings only forindependent outside directors, and the feeding back of results to executive officers

Monitoring function
Monitoring

ReportCompensation
Decision

Cooperation
Audit

Accounting
AuditorInstruction
ReportExecution function

TOPICS

Representative Executive Officers
Executive Officers

Established the Quality Assurance and Regulatory Affairs (QA&RA) Committee as an Optional
Committee in April 2023

ReportAudit

Internal
Audit

Group Executive Committee

OutsideDirector

The Committee will provide ongoing oversight to support regulatory compliance, cross-functional planning, resourcing andmonitoring of company s transition towards a robust company quality management system as a global MedTech company.

Instruction

Cooperation

Audit

Functional Divisions, Business Units, Corporate Divisions, and Group Companies

InsideDirector

Details on the QA&RA Committee are on pages 16, 17

Changes in Corporate Governance
FY2012FY2014FY2015FY2016FY2017FY2018FY2019Deferred recording of past losses discovered

Chronology

Management Plans

FY2013Medium-Term Vision
Stage of reconstructing management(recover trust and strengthen internal systems)

2016 Medium-Term Management Plan (16CSP)
Sustainable growth stage (Strengthening the foundations of our businessand developing a strong business portfolio)

A company with an Audit & Supervisory Board

Management System

FY2024Company Strategy
Leading asa global MedTech
company

Corporate Strategy
Transforming into a truly global MedTech company

More than half are outside directors
Outside 3/
Inside 12

Outside 6/
Inside 5

Outside 8/
Inside 5—

Women

Committees

FY2023

Independent outside directors

Directors

Nationalities otherthan Japanese

FY2022

A company with a Nominating Committee, etc.

Inside Directors

Chairperson of the Board

Members

FY2021

 nnouncement of Transform Olympus
A
corporate transformation plan

New management system launched2010 Medium-Term
Strategic Plan
(10CSP)
Advancing to the Next
Stage of Globalization

FY2020Outside 5/
Inside 51

1

Established Management Reform Committee,
Director Liability Investigation Committee, Non-Director Liability Investigation Committee

Outside 10/
Inside 5

Outside 9/
Inside 3——

Voluntarily established a Nominating Committee,
Compensation Committee, and Compliance Committee
Members: Majority are outside directors
Committee chairpersons: Outside directors

Outside 6/
Inside 5

Outside 8/
Inside 3

Outside 9/
Inside 313

Outside 10/
Inside 32

4

5

Established a Nominating Committee,
Compensation Committee, and Audit Committee*2
Members: Majority are independent outside directors
Committee chairpersons: Independent outside directors
Established Quality Assurance and Regulatory Affairs (QA&RA)
Committee as an optional committee*2 The Compliance Committee was established until July 2020.

84

Olympus Integrated Report 2023

85

Chapter 03

Our Setup6

ESG focus
areas

Corporate Governance

Basic Concept of Corporate GovernanceAll our activities are based on our corporate philosophy,“Making people’s lives healthier, safer and more fulfilling.”
Following this philosophy, we aim for the sustainable
development of Olympus and medium- to long-term corporate
value for all stakeholders, including shareholders. Thisphilosophy also drives us to establish, implement, andcontinuously improve systems for ensuring the effectivenessand efficiency of operations and the appropriateness andreliability of financial reports. We are continuously strengthening
our corporate governance system, positioning this task as a

The Member Composition of the Board of Directors
top management priority. In addition, we are complying withJapan’s Corporate Governance Code, which was formulatedby the TSE in June 2015 (revised in June 2021), and have
implemented measures based on the principles of the code.
Through such efforts, we seek to ensure an effective corporate
governance structure based on our fiduciary duty toshareholders; our responsibilities to customers, employees,
communities, and other stakeholders; and the aforementioned
corporate philosophy.

With regard to the composition of the Board of Directors, weconsider the diversity of experience, knowledge, and skills of
the Board of Directors, regardless of the nationalities,
ethnicities, and genders of its members. The directors shallsecure sufficient time as members of the Board of Directors toensure that all directors are able to fulfill their duties andresponsibilities. To ensure its effectiveness, the Board of
Directors is currently composed of 13 members, of whom ten

Name

Details

Basic Policy for Corporate Governance: https://www.olympus-global.com/company/governance/pdf/basic_policy_for_corporate_governance_en.pdf
Corporate Governance Report (As of September 19, 2023): https://www.olympus-global.com/company/governance/pdf/governance_report_september_19_2023_en.pdf

Overview of Board and Each Committee
Name
Board ofDirectors

Members

The Board of Directors shall determine basic management policy, matters related to the internal
control system, and other important matters, and monitor directors and executive officers, in theexecution of their duties. (Meets at least once every three months and when needed.)

Sumitaka Fujita (Chairperson)
Yasumasa Masuda
David Robert Hale
Jimmy C. Beasley
Sachiko Ichikawa
Yasushi Shingai
Kohei Kan
Gary John Pruden
Tatsuro Kosaka
Luann Marie Pendy
Yasuo Takeuchi
Stefan Kaufmann
Toshihiko Okubo

Nominating
Committee

The Nominating Committee shall deliberate matters related to human resources at the director andexecutive officer levels, and shall determine the content of proposals submitted to the General
Meeting of Shareholders in relation to the election and dismissal of directors.

Sumitaka Fujita (Chairperson)
Gary John Pruden
Tatsuro Kosaka
Stefan Kaufmann

Compensation
Committee

The Compensation Committee shall deliberate matters related to compensation of directors andexecutive officers, and prescribe policy in relation to determining the details of compensation, etc.,
and in accordance with the policy, determine the contents of compensation, etc., for individuals.

Yasushi Shingai (Chairperson)
Jimmy C. Beasley
Luann Marie Pendy

Audit
Committee

The Audit Committee shall carry out the following duties:1) Auditing the execution of duties by executive officers and directors, and creating audit reports2) Determining the content of proposals relating to the election, dismissal, and non-reappointmentof accounting auditors3) Other duties prescribed by law or by the Articles of Incorporation, and other matters recognized
as necessary by the Audit Committee

Yasumasa Masuda (Chairperson)
Sachiko Ichikawa
Kohei Kan
Toshihiko Okubo

Quality Assurance
and Regulatory Affairs(QA&RA) Committee

The QA&RA Committee shall resolve or deliberate on the following matters and report suchmatters to the Board of Directors as appropriate:1) Oversight and advice on the company plans of the quality management system as required of a
global MedTech company, including the Management Review process2) Oversight and advice on regulatory communication strategy and engagement
3) Provide recommendations to management for resourcing and areas of planning and execution4) In addition to the above, monitor any significant resourcing requirements outside of management
plans and/or address any matters that have been requested by the Board of Directors withregard to QARA

Gary John Pruden (Chairperson)
Jimmy C. Beasley
Luann Marie Pendy

In the Group Executive Committee, the Representative Executive Officers and executive officers
shall deliberate on critical matters concerning business execution for the entire Olympus Group as
entrusted by the Board of Directors, and provide support on the decision-making of executive
officers so as to prevent decisions being made based solely on the discretion of an executive officer.
Each executive officer reports on and shares the status of execution of business and functions
under their jurisdiction to ensure the effectiveness of the committee as a body for monitoring theexecution of business and functions of the entire Olympus Group. (Meets at least once a monthand when needed.)

Stefan Kaufmann (Chairperson)
Yasuo Takeuchi
Frank Drewalowski
Gabriela Kaynor
Chikashi Takeda
Nacho Abia
Tetsuo Kobayashi
Andre Roggan
Shigeto Ohtsuki
Pierre BoisierGroup Executive
Committee

86

OutlineOlympus Integrated Report 2023

Date ofappointment

Sumitaka Fujita

Apr. 2012

Yasumasa Masuda

June 2018

David Robert Hale

June 2019

Jimmy C. BeasleyJune 2019

Sachiko Ichikawa

June 2021

Yasushi Shingai

June 2022

Kohei Kan

June 2022

Gary John Pruden

June 2022

Tatsuro Kosaka

June 2023

Luann Marie Pendy

June 2023

Yasuo Takeuchi

Apr. 2012

Stefan Kaufmann

June 2019

Toshihiko Okubo

June 2023

Independence

are independent outside directors. In addition, of those 13
directors, five are non-Japanese, and two are women. This
composition is based on a consideration for human resource
requirements to becoming the global MedTech company that
Olympus aims to be, which includes having abundant
experience and insight in corporate management, finance, andinternational business deployment, as well as diversity ininternationality and gender.
Area Olympus expects the directors to display their capabilities in

Corporate
Management

Overseas
Business

Healthcare
Industry

Quality
Assurance

Legal/Risk
Management

Finance/
Accounting

HR
Development

ESG

Note: The above table does not indicate all the expertise/experiences the directors have.

Message from a Newly Appointed Outside Director

Tatsuro Kosaka
Outside Director(Member of theNominating Committee)

In aiming to become a global MedTech
company, Olympus has been focusing on its
corporate portfolio over the past four years.
Now, Olympus has become an
unprecedented company in Japan, especiallyin terms of the globalization of its
management. I believe that the following areimportant for Olympus to grow sustainably asa global MedTech company in the years tocome: R&D investment and productivity,
capabilities of global management, andbusiness development. Regarding organic
growth, the key to innovation will be
combining Olympus’ traditional manufacturing
and DX to provide both things (products) andservices (solutions). From the businessdomain perspective, I think one of the points
for discussion is whether to penetrate moredeeply into the three focus areas of GI,

Urology, and Respiratory or tap into new
business areas. Inorganic growth throughsynergistic M&A will also be essential. I would
like to discuss the issues that we are facing,such as these growth opportunities, patient
safety initiatives, and ESG initiatives, at theBoard of Directors’ meetings.
Having worked for a pharmaceuticalcompany for many years, I am pleased tohave been appointed as an outside director at
Olympus, which shares the common missionof putting patient safety first. In order for
Olympus to grow sustainably and increase
corporate value over the medium to longterm, I would like to contribute to Olympus bymonitoring management and supporting
sound risk-taking from the perspectives of all
stakeholders, including shareholders,investors, and business partners.

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areas

6

Corporate Governance

Activities of the Board of Directors and Committees in Fiscal Year 2023
Message from a Newly Appointed Outside Director

Luann Marie Pendy
Outside Director(Member of Compensation
Committee/Member of
QA&RA Committee)

I have been passionate about providing
solutions for healthcare issues for over 30
years. Based on my decades of experience,
Our Purpose of “making people’s lives
healthier, safer and more fulfilling” resonateswith me. Olympus is currently implementing avariety of initiatives with patient safety as the
top priority. Employees must always think
how their roles contribute to patient safety,
which is the most important way tostrengthen quality assurance, regulatory
affairs, and compliance. In other words,
employees in every function must fully commit
to quality and compliance in their everyday
duties for the safety of patients. We also needto learn new ways of doing business if we areto respond quickly to regulatory changes. I
will fulfill my responsibilities as an outside
director by offering my expertise andexperience, and monitoring Olympus toensure that it is addressing quality assurance
and regulatory affairs issues.
For Olympus to achieve sustainablegrowth for the next century, we need to not
only focus on technology but pivot toward
working closely with healthcare professionals
to identify unmet patient needs and deliver
solutions that improve patient outcomes. My
philosophy is our Board, our leadership team,
our management team should reflect thediverse range of patients and healthcare
professionals we serve. The greater
contribution that I would like is to make us a
more diverse company because that is how
we can continue to provide value-added
solutions to patients and healthcare
professionals.

Message from a Newly Appointed Director

Toshihiko Okubo
Director(Member of Audit Committee)

After executing M&A, structural reforms, etc.
at Olympus’ former Scientific Solutions
Business (currently Evident Corporation), I
was responsible for transforming thebusiness portfolio, including the company
split and transfer of the Imaging Businessand the Scientific Solutions Business from2019. For 10 of my 32-year career at
Olympus, I had been based in the UnitedStates, and in many respects thatexperience has proven to be of pivotal
importance for me.
Olympus has had to overcome a varietyof challenges throughout the course of its
more than 100-year history. That said, whatcustomers expect and request from us, andwhat society expects and requests fromcompanies, are bound to become

Attendance at meetings ofthe Board of Directors

Attendance at meetings of
the Nominating Committee

Attendance at meetings of
the Compensation Committee

Attendance at meetings of
the Audit Committee

Sumitaka Fujita

16/16

17/17

—

—

Tetsuo Iwamura

16/16

2/2

11/11

—

Yasumasa Masuda

16/16

—

—

25/25

David Robert Hale

16/16

17/17

—

—

Jimmy C. Beasley

16/16

—

11/11

—

Sachiko Ichikawa

16/16

—

—

25/25

Yasushi Shingai

13/13

15/15

6/7

—

Kohei Kan

13/13

—

—

19/19

Gary John Pruden

11/13

—

7/7

—

Yasuo Takeuchi

16/16

17/17

—

—

Name

Stefan Kaufmann

16/16

—

—

—

Nobuyuki Koga

16/16

—

—

25/25

Notes: 1.	Attendance of Mr. Tetsuo Iwamura at the meetings of the Nominating Committee is based on those held during his term of office as a member until June 24, 2022.
2.	Attendance of Mr. Yasushi Shingai, Mr. Kohei Kan, and Mr. Gary John Pruden at the meetings of the Board of Directors is based on those held after their appointment as a director on June24, 2022.
3. Attendance of Mr. Yasushi Shingai, Mr. Kohei Kan, and Mr. Gary John Pruden at the meetings of the Committees is based on those held after their appointment as a director on June 24, 2022.
4.	As Mr. Tatsuro Kosaka, Dr. Luann Marie Pendy, and Mr. Toshihiko Okubo were appointed directors in June 2023, they did not attend the meetings of the Board of Directors or those of theother Committees in fiscal year 2023.

Name

increasingly dynamic in the years to come.
For Olympus to continue to increase its
corporate value in such an environment, bothagile and bold management execution andappropriate governance and monitoring are
essential. This is because appropriate
governance and monitoring by the Board of
Directors enable our management team to
execute agilely and boldly. Of the 13
directors on our Board of Directors, 10 are
outside directors with a wealth of experienceand diverse, advanced expertise. As amember of such a Board with a deeper
understanding of Olympus’ business,organization, and culture, I would like tocontribute to the Board and the Audit
Committee in furthering the effective andefficient fulfillment of their responsibilities.

Activities

Board ofDirectors

 he Chairperson of the Board of Directors conducted a review of the proceedings of the Board of Directors
T
up to the previous meeting and those of each committee meeting and reported on matters deliberated at theGroup Executive Committee
As a regular agenda item, conducted execution status reports from executive officers
Separately from regular meetings of the Board of Directors, a corporate strategy discussion meeting washeld on the state of progress and issues in the corporate strategy and on topics in the business planIn an ongoing effort to improve the monitoring function while aiming for outside directors to mutually
exchange information and share awareness, an Opinion Exchange Meeting for outside directors was held
once per quarter as a regular meeting at which only outside directors participated, and an Executive Session
was held after the conclusion of every Board of Directors’ meeting

Nominating
CommitteeIn considering the plan for the composition of the Board of Directors, the Nominating Committee updated amatrix for the experience and knowledge required of directors of Olympus
Regarding the selection of candidates for Directors, outside consultants were used, and deliberations andinterviews were conducted according to the selection criteria after considering the composition of Olympus’s
Board of Directors
Regarding the selection plan for executive officers, the Nominating Committee discussed their suitability andmade decisions after a year-long selection process
Regarding the succession plan for executive officers, the Nominating Committee discussed whether the
candidates possessed the desired experience and knowledge in accordance with expected roles in theexecution of duties at Olympus

Compensation
Committee*

 eviewed results of performance-linked compensation in fiscal year 2022 and determined amount to be paid
R
Reviewed compensation content to further improve compensation system
Determined compensation for fiscal year 2023 as well as reviewed results of performance-linked
compensation and determined amount to be paid after the end of the fiscal year
Determined compensation policy for fiscal year 2024

Audit
CommitteeIn addition to maintaining an independent position and fair and unbiased attitude and auditing andoverseeing the accounting auditor and internal audit function, the Audit Committee conducted effective,
efficient audits by directly verifying the suitability and validity of the execution of duties by the directors andexecutive officers
In addition to monitoring and evaluating whether the accounting auditor maintained an independent positionand performed suitable audits, the Audit Committee received reports from the accounting auditor on thestate of execution of its duties and requested explanations where necessary

Held systematically andregularly by utilizing an
online environment toensure effectiveness*Activities from April 2022 to May 2023

88

Olympus Integrated Report 2023

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6

Corporate Governance

Overview and Background for Implementation of the
Evaluation of the Board of Directors

Support Systems for Directors
To support the effective execution of the roles and duties of
directors, Olympus works proactively to provide directors withinformation and provides documents prior to Board of Directors’
meetings while setting an opportunity for the explanation of
agendas in advance as necessary and working to stimulate
discussions in Board of Directors’ meetings. Olympus
established a dedicated organization of “Secretary to the Board”
to support the execution of duties of outside directors as well as
the effective and vigorous activities of the Board of Directors,
Nominating Committee, and Compensation Committee.
Olympus provides training for directors, comprising visits toour major business bases such as business offices andfactories, etc., and business study sessions such as briefing
sessions, product demonstrations, and technical result
presentations to promote the acquisition of knowledge
concerning Olympus. Furthermore, Olympus holds meetings
between newly inaugurated directors and executive officers topromote understanding of executive thinking and awareness of
issues, and to deepen understanding of the roles andresponsibilities of an Olympus director. Finally, Olympus covers
the cost for directors to acquire the requisite knowledge
necessary for the performance of their duties.

Process for Election of Directors and Executive Officers,
Development and Selection of Successors for the CEO
Process for Election of Directors andExecutive Officers
The Nominating Committee shall deliberate director
candidates while making reference to the selection criteria,
hold interviews, and determine the content of proposals
submitted to the General Meeting of Shareholders in relation
to the election and dismissal of directors.
In addition, executive officer elections are determined by
the Board of Directors after the Nominating Committee
discusses whether the candidate has experience, insight, etc.,
appropriate for an executive officer and develops proposals
for elections.

Development and Selection of Successors for the CEO
The Nominating Committee deliberates a succession plan for
the CEO and reviews it periodically. As for determining the
successor, the Nominating Committee discusses whether the
candidates have qualifications that are suitable for the role ofCEO, and provides opinions and advice to the Board of
Directors. Thereafter, the successor is decided by the Boardof Directors.

Initiatives for Enhancing Effective Corporate Governance
Agenda of the Board of Directors
We have delegated authority largely to executive officers toincrease the speed of management decision-making andexecution of duties. We are addressing issues that should be
discussed by the Board of Directors in a timely and appropriatemanner. The main agenda of the Board of Directors for fiscal
year 2023 was as follows.

	Matters related to Olympus’ basic management policies; e.g.
corporate strategies, business plans, performance forecasts
and Basic Policy on the Internal Control System, etc.
	Matters related to Corporate Governance (Status report foreach business, risk management, internal audit plan, statusof quality control and information security efforts, status
report on IR activities, evaluation of the effectiveness of theBoard of Directors, executive structure for the next term, etc.)

In addition to the above, the Chairperson of the Board of
Directors reports on matters discussed at the meeting of theGroup Executive Committee as necessary and the Board of
Directors regularly receives status reports on the execution ofduties from executive officers.

Olympus Integrated Report 2023

Evaluation Results for Effectiveness of
the Board of Directors
It was generally positively evaluated that steady progress had
been made in the initiatives for fiscal year 2023. In addition,
Olympus Board of Directors confirmed that the Board of
Directors have defined “the responsibilities” and a “culture to
be sustained” had been fostered, with affirming theachievement that concrete efforts had been made tostrengthen corporate governance. The current members of theBoard of Directors agreed with the definitions of“responsibilities” and “culture” established by the Board of
Directors in the past and formed a consensus that they should
be sustained among the members. In addition, a consensus
was formed that the Board of Directors should continue toexamine its structure and operations to further contribute to
the enhancement of corporate value, while sustaining thepractice of corporate governance reform to date.
In May 2023, Olympus announced the new company
strategy to pursue its way to enhance a position as a global
MedTech company. By following Our Purpose of “Making
people’s lives healthier, safer and more fulfilling,” we willcontinue to strengthen corporate governance and enhancetransparency, which are important management foundations.

A cooperative
relationship to enhance
corporate value throughconstructive discussions
between monitoringand execution

The Cultureof Olympus’
Board of Directors
Corporate
leadership
through execution

Mutually
trusting relations
between monitoringand execution

Fostering and sustaining a“Culture of Board of Directors” is the foundationfor Board of Directors to fulfill its responsibilities.

Evaluation Results for Effectiveness of the Board of Directors

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

Initiatives for Fiscal Year 2023

Assessment of Response

Agenda of the Board of Directors in Fiscal Year 2023

	Matters related to the status of activities of each Committee;
e.g. audit plans of the Audit Committee, matters discussed
at the Compensation Committee, and sharing of othercommittee proceedings, etc.

90

Since 2015, we have been conducting evaluations of theeffectiveness of the Board of Directors and an overview of theresults has been made public every year with the aim ofrealizing effective corporate governance. In the Board of
Directors Evaluation conducted from February to June 2023,
the following points have been set as main objectives.
To measure the effectiveness of the activities for theeffectiveness improvement initiatives determined in the
Board of Directors Evaluation during the term of office of

directors in fiscal year 2022
To review the period (fiscal year 2021 to fiscal year 2023)
covered by the corporate strategy announced in November
2019 pursuant to the corporate transformation plan
Transform Olympus, to confirm the activities and progresses
to strengthen governance and improve transparency in thepast, and aim to promote “activities of the Board of Directors
to further enhance the effectiveness” as a Board of global
MedTech company in facilitating the new company strategy.

	Deliberate on the agenda of the Board of Directors
in a more systemic manner in relation to corporate
strategy by working together with the Chairpersonof the Board, the CEO, and secretariat.
	With regard to executive officers’ reports on thestatus of their business execution, make efforts to
put emphasis on the focus points of the Board of
Directors, based on the priorities of management
issues, as well as monitoring items that the Boardof Directors attaches importance to.
	The Nominating Committee, Compensation
Committee, Audit Committee, and the Board of
Directors shall make reasonably necessary efforts
based on priority issues while further strengthening
cooperation.

	Steady progress had been madewith respect to the following
initiatives: Proper narrowing downof agenda; optimization centeredon the evolution of reporting on
the status of execution into a
global MedTech company
	Expectation for further narrowing
down the agenda and more
efficient operation of the Board of
Directors
	Steady progress had been madein strengthening of liaison
between the Nominating/Compensation/Audit Committees
and the Board of Directors

Initiatives for Fiscal Year 2024
	Enhanced monitoring by the Boardof Directors on quality assurance
and regulatory affairs
	Activities of the Board of Directors
to effectively supervise
management decision-making andexecution from a strategic andbroad perspective
	Initiatives to continuously improve
the operations of the Board of
Directors (Further improve thequality of presentations from theexecutives, reconfirm the Board of
Directors’ pre-briefing method,
and the creation of opportunities
for “bridging” among Board
members and between Board
members and executive members)

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Corporate Governance

Officer Compensation

based on the share price at the time of assumption of office at
the General Meeting of Shareholders, and the number ofshares will be given after vesting.

Changes in the Compensation Structure
for Executive Officers

Basic Policy for Officer Compensation
At Olympus, our Compensation Committee, a majority of which iscomprised of independent outside directors, discusses anddetermines the compensation policy used to govern and reward
our directors and executive officers (“officers”). Our basic policy
regarding officer compensation is to make officers have a strong
sense of awareness that maximizes the corporate value and meetstakeholders’ expectations, and reward their responsibilities withsuitable and appropriate treatments. Based on the said policy, theCompensation Committee focuses on appropriately setting thecompensation portion linked to short-term, medium- to long-term
performance, and decides officer compensation.
Compensation Level
Each officer’s compensation level is set to commensurate with
their roles/responsibilities, evaluation of competitive market
data, economic environment, and company and individual
performance in order to enable Olympus to attract, retain andmotivate executives. Specifically, the compensation levels ofglobal MedTech companies and companies in the country theofficer is from are set as benchmarks, and the compensationlevel will be determined annually by making a relative
comparison.

Components of Compensation
1.	Base salary (BS): Cash compensation in the form of fixedcompensation that is paid monthly in accordance with theroles and responsibilities regarding work duties.
2.	Short-term incentive (STI): Cash compensation intended to
reward executives for driving actual business performance
results every fiscal year. STI allows officers to earn cash
compensation equal to 0% to 200% of their target bonus
opportunity, based on the achievement of financial andnon-financial performance measures.
3.	Long-term incentive (LTI):	Restricted stock unit (RSU)—grant-type restricted stockcompensation: A type of service-vested stockcompensation that grants rights (units) corresponding to a
set amount of total compensation to be paid as shares ofCompany stock (with one unit equal to one share) at thecompletion of the pre-defined period.
	Performance share unit (PSU)—performance-linked
stock compensation: An equity award with pre-defined
performance-based conditions and paid out in shares ofCompany stock after the performance period is completed.
The compensation paid is calculated as a ratio between 0%
and 200% relating to reaching the target after three years.

Officer Compensation in Fiscal Year 2023

Directors

Total compensation by type (¥ million)

Total amount ofcompensation(¥ million)

Base salary

Performance-linked
compensation, etc.

Non-monetarycompensation, etc.

Inside directors

1,094

531

190

373

3

Outside directors

192

151

—

41

11

1,122

570

223

329

4

Position

Executive officers

Number of
subject officers

Notes: 1. Basic salary includes the amount paid for fiscal year 2023. Performance-based cash compensation includes the fiscal year 2023 short-term incentive, for which the amount is to be recorded as
expense for fiscal year 2023. Non-monetary compensation includes both time-based restricted stock units (RSUs) and performance stock units (PSUs) to be recorded as expense for fiscal year
2023. PSUs of ¥387 million is only stated in non-monetary compensation and is not stated in performance-based cash compensation.
2. For inside directors, there are two other executive officers who are classified as both an executive officer and inside director which is in addition to the four executive officers reported in thetable. Total compensation by type is reported for these two individuals under the inside directors row.
3. Olympus Corporation does not provide performance-based cash compensation to directors who are not classified as both an executive officer and inside director.
4. For outside directors, the row includes two directors who retired at the close of the fiscal year 2022 General Meeting of Shareholders held on June 24, 2022.
5. One outside director has requested to decline his compensation, therefore information is not reported for this director. However, the outside director count includes the total number of outside
directors for fiscal year 2023.

Compensation Structure for Directors
Taking into consideration roles and responsibilities,
compensation for directors is paid by fixed compensation as
BS. To address the concept that directors and investors shareinterests, service-vested stock compensation is also granted.
The stock compensation here is to be RSU, the right to which
will be defined at retirement for those directors who areresidents of Japan.
Stock rights will be defined on an individual basis inaccordance with a general method of stock compensation ineach region for those directors who are non-residents ofJapan. For further sharing interests with investors throughpromoting the holding of shares, stock-based compensation

92

Olympus Integrated Report 2023

was set at ¥8 million for both Japanese and non-Japanese
residents. The number of shares to be granted was calculatedBS
64–82%

RSU
18–36%

Notes: 1. The above table shows a compensation ratio by type as to directors who are natives ofJapan. As for directors who are not natives of Japan, a payment level of RSU is thesame as directors who are from Japan, but a compensation ratio by type is different
because of difference in total compensation.
2. For those who concurrently holding a position as executive officer, cash compensation
paid for management and monitoring functions performed as a director is separate
from compensation of an executive officer for those who are natives of Japan. For
those who are not natives of Japan, cash compensation paid for management andmonitoring functions performed as a director is included in compensation of an
executive officer. In addition, for those who concurrently holding a position as
executive officer, RSU is set for compensation of executive officer. Therefore, RSU asa director’s compensation shall not be paid.

Compensation Structure
for Executive Officers
In fiscal year 2020, in accordance with a corporate strategy ofaiming to become a global MedTech company, we establisheda new compensation system which was implemented at the
beginning of fiscal year 2021. In order to achieve our corporate
strategy and to create corporate value, it is essential that wehave a compensation system that ensures that we havecapable management personnel and that they can fully
demonstrate their abilities. The new compensation was
designed and decided based on the following concepts.
1. Establish a more powerful incentive program which cancompete with global MedTech companies
2. Establish an incentive program which is consistent with thecorporate strategy
3. Establish a program that focuses on value creation andperformance evaluation utilizing LTI compensation
4. Set a compensation level considering the stage ofdevelopment to become a global MedTech company—ahybrid mix of “Global labor market” and “Home”
5. Ensure the sound management of incentives by putting
clawback clauses and shareholding guidelines in place
6. Enhance the motivation of executive officers by setting
challenging and achievable targets
While a standardized, global compensation system isdesirable for compensation design for executive officers thatare responsible for global management, differences incompensation levels by region make it difficult to attract andretain talented executives with Japan’s pay levels. By
considering the situation of labor market of executive officers’
home countries and competitiveness in the market, and theroles and responsibilities, we set target level and tolerance
range, and determine compensation after holistic comparisonsof basic compensation, TCC (Total Cash Compensation)
and TDC (Total Direct Compensation). Compensation for
executive officers is to be a combination of BS, a fixedcompensation, STI compensation which is linked to businessresults by every fiscal year, and LTI compensation. Focusing
on achieving corporate strategy aimed at enhancing
medium- to long-term corporate value and shareholder value,
the ratio of performance-linked compensation, particularly LTI
compensation, was raised, and the standard amount of STI
compensation and LTI compensation was set. LTI
compensation consists of RSU and PSU.
A clawback clause has been set up to deter the
management (executive officers) from reckless investments andimproper accounting. Shareholding guidelines are established
to share interests between investors and management.

FY2020Executive Officer

BS
50%

STI
25%

LTI
25%

Note: Executive officers who are non-residents of Japan are not eligible forcompensation through RSUs, and their compensation through PSUs were paidin equivalent cash compensation instead of the shares themselves.

Setting up a new compensation system,
in line with the corporate strategy of
becoming a global MedTech company.

FY2021, FY2022
Representative Executive Officer

BS
25%

STI
25%

LTI
50%

Executive Officer

BS
28.5%

STI
28.5%

LTI
43%

Note: Executive officers who are non-residents of Japan will also be provided withshares for LTI compensation.

Having taken into consideration thecompensation levels of global MedTech
companies, the compensation structure has
been changed to higher the ratios of STI
compensation, which is performance-linked
compensation, and LTI compensation,
which is stock compensation.

FY2023, 2024
Representative Executive Officer

BS
19%

STI
24%

LTI
57%

Executive Officer

BS
24%

STI
28%

LTI
48%

Note: Executive officers who are non-residents of Japan will also be provided withshares for LTI compensation.

1
2

Increasing the proportion of long-term
incentives in line with the corporate
strategy
Setting challenging and achievabletargets in accordance with the businessenvironment and increasing the
motivation of executive officers

93Chapter 03

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ESG focus
areas

Corporate GovernanceCompensation of Executive Officers for Fiscal Year 2023 and Fiscal Year 2024
The Company established a new compensation system infiscal year 2020, in accordance with the corporate strategy ofaiming to become a global MedTech company, based on the
direction of greater emphasis on LTI compensation. Regarding
the composition of compensation for executive officers, theCompany has increased the ratio of STI compensation, whichis performance-linked compensation, and LTI compensation,
which is stock compensation, taking into consideration thecompensation level of global MedTech companies. The ratio of
RSU and PSU are 25% and 75%, respectively, in accordancewith the basic concept of putting emphasis on performancelinked compensation. Nevertheless, Given the uncertain andvariable business environment, the Compensation Committee
has determined 40% for RSU and 60% for PSU for fiscal year
2023 and fiscal year 2024 in order to ensure an ideal ratio ofshares to the total amount of compensation.

Long-term Incentive (LTI)
From fiscal year 2021, RSU and PSU are being utilized. Executive officers, including those who are non-residents of Japan, aregranted rights (units) that correspond to a pre-defined amount of total compensation, and which are payable as actual shares after
completion of pre-defined period.
FY2021

FY2022

FY2023

FY2023 (Results), FY2024

STI
24%

RSU
23%

PSU
34%

STI
28%

Notes:
1.	The left table shows a compensation ratio by type of compensation
paid for the role of executive officer, and it does not include
compensation paid for the role of monitoring by a person who isconcurrently holding a position as a director.
2.	For those who are not natives of Japan, housing allowances,pensions, etc. are established for making adjustments to theprevious compensation agreements on an individual basis. (This is
not included in the ratios shown in the figure on the left.)

RSU
19%

PSU
29%

A performance-linked compensation in line with a single year’s financial targets and important issues facing the entire Company, inwhich targets are commonly set for all executive officers. The compensation is payable at a ratio of 0% to 200% in proportion toachieving the targets. The financial indicators are revenue and operating margin to assess growth and efficiency. Since it isimportant to steadily implement long-term and strategic initiatives within each fiscal year, we also deem strategic goals and quality
goals to be indicators.

FY2023 (Result: Payment rate 60.3%)
Targetvalue

Actualvalue

Achievement
rate

Payment
rate

30%¥830.0billion¥832.8billion101.8%

30.54%

Operating margin*¹

40%

21.4%

20.0%

93.5%

0%*4

Strategic goals*2

30%

—

—

99.1%

29.73%FY2024WeightTargetRevenue*³25%¥914.0 billion

Operating margin*³

25%

20.9%

50%

The medium- to long-term, and short-term goals of major
initiatives to improve the root causes (vulnerabilities) that
may exist with our QARA organizational structure,
manufacturing processes, quality management systems andthe quality culture of our Medical Business.

Quality goals

94

Olympus Integrated Report 2023

3*

6

Payment

2

Payment

Performance share unit (PSU)

1

Granting of rights (units) only
*5	The payment rate was 0% for those PSU for which fiscal year 2021 was the final fiscal year of the evaluation period. Although the COVID-19 pandemic was having a major impact on the businessenvironment, executive officers produced effects through fiscal year 2022 and beyond. The Compensation Committee believed it was necessary to have an effective form of compensation aimed at
maximizing corporate value, improving shareholder value, and strengthening the sharing of interests with shareholders, and were, therefore, paying out a “Transformational FY22-RSU.”*6	From fiscal year 2023, payment type of RSU was changed to 1/3 payable as actual shares after each year.

Performance Share Unit (PSU)

Payment

FY2021 to FY2023 (Results)

1

Index

WeightTarget (100% payout)

ResultPayment rate

Operating margin*7, 8

40%

20%

20.0%

100%

ROIC*7, 9

15%

20%

18.4%

80%

EPS growth rate*7, 10

15%

25% (CAGR)

35.8%

200%

Relative TSR*1120%50%ile (Peer group)

58.8%ile

135.2%

ESG*12

10%

DJSI-index

World

200%

Index

Revenue*¹

Index

4

PSU

Restricted stock unit (RSU)FY2022 to FY2024

WeightPayment

PSU
Payment

Transformational FY22-RSU*5

Short-term Incentive (STI)

Index

RSU

RSU

PSU

Executive Officer

BS
24%

FY2026

RSU

Representative Executive Officer

BS
19%

FY2025

FY2024

Payment rate

129%

Payment

Payment

2

3

FY2023 to FY2025

WeightIndex

Payment

FY2024 to FY2026

WeightIndex

4
WeightOperating profit

40%

Operating profit

20%

EPS growth rate

20%

Relative TSR*13

40%

Relative TSR*13

60%

Relative TSR*13

40%

ESG*1420%

ESG*1420%

Quality indicator30%

ESG*14

10%

Reasons for adopting KPIs of FY2024 to FY2026*1	Revenue is calculated from the figure after foreign exchange
adjustment and operating margin is calculated from operating
profit after adjustments that deduct other income from and add
other expenses to operating profit.
*2	Target items were set on the following important companywide
initiatives for fiscal year 2023, announced on May 11, 2022, andset as common goals for all executive officers. The payment rate
for the achievement rate of each target was set from the lower
limit of 0% to the upper limit of 200%.
	Focus on diseases on which we can have a market-leading
impact	Shape the future by investing in new ways to elevate thestandard of care	Enable our organization to better execute globally and at pace*3	At the time of the evaluation, revenue is calculated from thefigure after foreign exchange adjustment and operating margin is
calculated from operating profit after adjustments that deduct
other income from and add other expenses to operating profit.
*4	Since operating profit margin was less than 20.1%, the payment
rate was 0%.

*7	Operating margin, ROIC, and EPS growth are actual
results after adjustment by deducting other income and expenses.
*8	(Payment rate % of Operating margin) = 50 x (Operating
margin result)- 900*9	(Payment rate % of ROIC index) = (100 x (ROIC result) - 1200) x 1/8*10	(Payment rate % of EPS growth index) = (100 x EPS growth
result) - 1800) ÷ 7*11	(Payment rate % of Relative TSR index) = 4 x (%ile result ofRelative TSR) - 100*12	Payment rate of ESG index: Determined by DJSI-Index of eachyear in the evaluation period. Results of each year was as follows.
		 FY2021= Asia Pacific, FY2022= World, FY2023= World PS growth rate: The company strategy covering from the fiscal year 2024 to the fiscal
E
year 2026 focuses on both growth and profitability in the new stage called “Shift to Grow.”
Then EPS growth rate is set as one of the financial guidance and target value is set as 8%.
The Compensation Committee judged that setting EPS growth rate (after adjustment) as
an evaluation index of PSU is suitable.
Relative TSR: The Compensation Committee determined that the relative TSR isappropriate as an indicator for evaluating the corporate value and shareholder value.
Quality indicator: The goals for PSU reward are the medium- to long-term and short-termgoals of major initiatives to improve the root causes (vulnerabilities) that may exist with our
QARA organizational structure, manufacturing processes, quality management systems
and the quality culture of our Medical Business. The Compensation Committee determinedthat the quality indicator is appropriate as an indicator for evaluating the patient safety.
ESG: The Compensation Committee determined that ESG is appropriate as an indicatorbecause it is a basis of business management and announced to be reinforced in thecompany strategy.

*13	The peer group consists of the following 20 companies inJapan, Europe, and the U.S. that are “manufacturers whosebusiness portfolio includes medical devices” or“manufacturers classified in the healthcare category of the
GICS code.”		Abbott Laboratories; Thermo Fisher Scientific Inc.;
Medtronic plc; Koninklijke Philips N.V.; Danaher Corporation;
Asahi Kasei Corporation; Becton, Dickinson and Company;
Siemens Healthineers AG; Stryker Corporation; Baxter
International Inc.; Boston Scientific Corporation; Zimmer
Biomet Holdings, Inc.; Terumo Corporation; Agilent
Technologies, Inc.; HOYA Corporation; Smith & Nephew plc;
Edwards Lifesciences Corporation; Intuitive Surgical, Inc.;STERIS plc; Sysmex Corporation*14	Evaluation based on the Dow Jones Sustainability Index(DJSI), which is a global representative ESG investment
index. In light of the business characteristics of Olympus,
the DJSI is set as an evaluation index for the reasons given
below. In addition, with the goal of meeting global standards
in all areas of ESG, an evaluation table was set with anemphasis on the DJSI that will be achieved in the third year,
in consideration of the results of the first and second years.
		The DJSI provides comprehensive coverage of overall
corporate activities.
		The breadth of coverage in the evaluation area contrasts
with the expectations of a broad range of stakeholders.
		The DJSI is a highly reliable external evaluation
organization and ensures transparency and fairness.

95

Chapter 03

Our Setup

Directors (As of August 31, 2023)

Outside Director

Sumitaka Fujita(Date of birth: December 24, 1942)
Apr. 1965 Joined ITOCHU Corporation
Jun. 1995 Director, ITOCHU Corporation
Apr. 1997 Managing Director, ITOCHU Corporation
Apr. 1998	Representative Managing Director,
ITOCHU Corporation
Apr. 1999	Representative Senior Managing Director,
ITOCHU Corporation
Apr. 2001	Representative Executive Vice President,
ITOCHU Corporation
Apr. 2006	Representative Vice Chairperson,
ITOCHU Corporation
Jun. 2006 Vice Chairperson, ITOCHU Corporation
Jun. 2007 Outside Director, Orient Corporation
Jun. 2008 Senior Corporate Adviser, ITOCHU Corporation
		Outside Director, Furukawa Electric Co., Ltd.
		Outside Audit, NIPPONKOA Insurance Company,
Limited (currently Sompo Japan Insurance Inc.)
Jun. 2009	Outside Director, Nippon Sheet Glass Company,
Limited.
Apr. 2010	Outside Director, NKSJ Holdings, Inc. (currently
Sompo Holdings, Inc.)
Jun. 2011	Chairperson, Japan Association for Chief Financial
Officers
Apr. 2012 Outside Director, Olympus Corporation (present)

Outside Director

Outside Director

Outside Director

Outside Director

Outside Director

Outside Director

Yasumasa Masuda

D. Robert Hale

Jimmy C. Beasley

Sachiko Ichikawa

Yasushi Shingai

Kohei Kan

(Date of birth: February 27, 1957)
Apr. 1980	Joined Fujisawa Pharmaceutical Co., Ltd. (currently
Astellas Pharma Inc.)
Jun. 2008	Corporate Executive, Vice President, Corporate
Finance & Control, Astellas Pharma Inc.
Jun. 2011	Corporate Executive, Vice President, Corporate
Finance & Control, and Chief Financial Officer, Astellas
Pharma Inc.
Apr. 2012	Corporate Executive, Vice President and Chief
Financial Officer, Astellas Pharma Inc.
Jun. 2012	Senior Corporate Executive, Senior Vice President andChief Financial Officer, Astellas Pharma Inc.
Apr. 2017	Senior Corporate Executive, Senior Vice President andAssistant to President, Astellas Pharma Inc.
Jun. 2017	Independent Non-Executive, Deloitte Touche
Tohmatsu LLC
Jun. 2018	Independent Non-Executive, Deloitte Tohmatsu LLC		Outside Director, Olympus Corporation (present)
Jun. 2023	Outside Auditor, SUBARU CORPORATION (present)<Important concurrent position>
Outside Auditor, SUBARU CORPORATION(Date of birth: December 21, 1984)
Sep. 2007	Joined The Parthenon Group (currently EY-Parthenon)
Jan. 2009	Assigned as Analyst to Strategic Value Capital, an
investment subsidiary of The Parthenon Group
Jun. 2009	Senior Associate, The Parthenon GroupMay 2010	Principal, The Parthenon Group
Jan. 2011	Joined ValueAct Capital Management L.P.
Dec. 2012	Vice President, ValueAct Capital Management L.P.
May 2014	Partner, ValueAct Capital Management L.P. (present)
Mar. 2015 Director, MSCI Inc.
Aug. 2015 Director, Bausch Health Companies Inc.
Jun. 2019 Outside Director, Olympus Corporation (present)
Jun. 2021 Outside Director, JSR Corporation (present)<Important concurrent positions>
Partner, ValueAct Capital Management L.P.
Outside Director, JSR Corporation(Date of birth: April 6, 1963)
Mar. 1986	Territory Manager, Roche Laboratories (Division of
Hoffman La Roche)
Jun. 1989	Various roles of increasing responsibility in sales andmarketing including Vice President of Sales andMarketing, Bard Access Systems Division, C.R. Bard
Inc.
Jun. 2003	President, Bard Access Systems Division, C.R. Bard
Inc.
Apr. 2007	President, Bard Peripheral Vascular Division, C.R.
Bard Inc.
May 2009	Group Vice President, C.R. Bard Inc.
Jun. 2013	Group President, C.R. Bard Inc.
May 2018	Consultant and Executive Advisor to ValueAct CapitalManagement L.P.*
Jun. 2019 Outside Director, Olympus Corporation (present)*The executive advisor role is a consulting role to ValueAct CapitalManagement L.P.: it is not an employee position. This consulting
agreement finished at the end of March 2019.

(Date of birth: January 17, 1967)
Apr. 1997 Registered as attorney		
Joined Tanabe & Partners
Jan. 2005	Registered as attorney of the State of New York
Nov. 2009	Statutory Auditor, The Board Director Training Instituteof JapanJan. 2011	Partner, Tanabe & Partners (present)
Jun. 2015	Outside Director, ANRITSU CORPORATION		Director, The Board Director Training Institute of Japan
Apr. 2018	Registered as certified public accountant of the U.S.A.
May 2018 Outside Auditor, Ryohin Keikaku Co., Ltd.
Jun. 2020	Statutory Auditor, The Board Director Training Instituteof JapanJun. 2021	Outside Director, Tokyo Electron Ltd. (present)		Outside Director, Olympus Corporation (present)
Jun. 2022	Director, The Board Director Training Institute of Japan(present)<Important concurrent positions>
Partner, Tanabe & Partners
Outside Director, Tokyo Electron Ltd.
Director, The Board Director Training Institute of Japan(Date of birth: January 11, 1956)
Apr. 1980	Joined Japan Tobacco and Salt Public Corporation(currently Japan Tobacco Inc.)
Jun. 2004	Executive Officer and Finance Group Leader, Japan
Tobacco Inc.
Jul. 2004	Executive Officer and Senior Vice President, CFO,
Japan Tobacco Inc.
Jun. 2005	Director, Executive Officer and Senior Vice President,
CFO, Japan Tobacco Inc.
Jun. 2006 Director, Japan Tobacco Inc.
		Executive Vice President and Deputy CEO, JT
international S.A.
Jun. 2011	Representative Director, Executive Vice President and
Deputy CEO, Japan Tobacco Inc.
Jun. 2014 Outside Director, Recruit Holdings Co., Ltd.
Jan. 2018 Director, Japan Tobacco Inc.
Mar. 2018 Outside Director, Asahi Group Holdings, Ltd.
Jun. 2018 Outside Director, Exa Wizards Inc. (present)		Outside Director, Mitsubishi UFJ Financial Group, Inc.
Jun. 2019	Outside Director, Dai-ichi Life Holdings, Inc. (present)
Jun. 2021	Outside Director, NIPPON TELEGRAPH AND
TELEPHONE WEST CORPORATION (present)
Apr. 2022	Representative Director, Shingai Institute ofManagement Consulting, Inc. (present)
Jun. 2022 Outside Director, Olympus Corporation (present)(Date of birth: March 7, 1960)
Sep. 1986 Registered as Certificated Public Accountant
Apr. 1987	Joined Mita Audit Corporation (currently Deloitte
Touche Tohmatsu LLC)
Jun. 1998 Partner, Deloitte Touche Tohmatsu LLC
Nov. 2013	Board Member, Deloitte Tohmatsu Group andDeloitte Touche Tohmatsu LLC
Nov. 2015	Chief Executive Officer, Deloitte Touche Tohmatsu
LLC
Jun. 2018	Senior Advisor, Deloitte Tohmatsu LLC
Sep. 2018	Audit & Assurance Leader, Deloitte Asia Pacific
LimitedJan. 2020	Senior Advisor, Deloitte Asia Pacific Limited
Oct. 2020	Chief, Kan Kohei Certified Public Accountant Office(present)
Nov. 2020	Board Member, International Federation of
Accountants “IFAC” (present)
Jan. 2022	Senior Advisor, The Japanese Institute of Certified
Public Accountants (present)
Jun. 2022 Outside Director, Olympus Corporation (present)<Important concurrent positions>Chief, Kan Kohei Certified Public Accountant Office
Board Member, International Federation of Accountants “IFAC”
Senior Advisor, The Japanese Institute of Certified Public
Accountants<Important concurrent positions>
Outside Director, ExaWizards Inc.
Outside Director, Dai-ichi Life Holdings, Inc.
Outside Director, NIPPON TELEGRAPH AND TELEPHONE WEST
CORPORATION
Representative Director, Shingai Institute of Management
Consulting, Inc.

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Olympus Integrated Report 2023

97

Chapter 03

Our Setup

ESG focusareas

2ComplianceDirectors

Compliance
Outside Director

Outside Director

Outside Director

Gary John Pruden

Tatsuro Kosaka

Luann Marie Pendy(Date of birth: May 10, 1961)
Oct. 1985	Joined Janssen Pharmaceutica, a division of Johnson& Johnson
Jun. 1999	Director of Marketing, GI Franchise Marketing,
Janssen Pharmaceutica
May 2001	Vice President, Marketing, Primary Care Franchise,
Janssen Pharmaceutica
Nov. 2002	Vice President, Marketing, CNS Franchise, Janssen
Pharmaceutica
Feb. 2004	President & Chief Operating Officer, Janssen-Ortho
Canada INC
Jan. 2006	Worldwide President, Ethicon Products Inc, a divisionof Johnson & Johnson
Apr. 2009	Company Group Chairperson, Ethicon Franchise Inc
Jan. 2012	Worldwide Chairperson, Global Surgery Group,Johnson & Johnson
Jun. 2015	Executive Vice President & Worldwide Chairperson,
Medical Devices, Johnson & Johnson
Dec. 2017	Independent Board Director, Motus GI (present)
Apr. 2018	Independent Board Director, Lantheus Holdings Inc.
(present)
Dec. 2019	Chief Executive Officer, GPS Med Tech Strategy
Consulting (present)
Mar. 2020	Independent Board Director, OSSIO Inc. (present)
Jun. 2022	Outside Director, Olympus Corporation (present)<Important concurrent positions>
Independent Board Director, Motus GI
Independent Board Director, Lantheus Holdings Inc.
Chief Executive Officer, GPS Med Tech Strategy Consulting
Independent Board Director, OSSIO Inc.

(Date of birth: January 18, 1953)
Apr. 1976 Joined CHUGAI PHARMACEUTICAL CO., LTD.
Apr. 1995 Deputy President, Chugai Pharma Europe, Ltd.
Oct. 2002	Vice President and General Manager of Corporate
Planning Dept., CHUGAI PHARMACEUTICAL CO., LTD.
Oct. 2004	Senior Vice President and General Manager ofCorporate Planning Dept., CHUGAI PHARMACEUTICAL
CO., LTD.
Mar. 2005	Senior Vice President and Deputy Managing Directorof Sales & Marketing Division, CHUGAIPHARMACEUTICAL CO., LTD.
Jul. 2005	Senior Vice President and Head of Strategic Marketing
Unit, CHUGAI PHARMACEUTICAL CO., LTD.
Mar. 2008	Senior Vice President and Head of Life Cycle
Management & Marketing Unit, CHUGAIPHARMACEUTICAL CO., LTD.
Mar. 2010	Director and Executive Vice President, CHUGAIPHARMACEUTICAL CO., LTD.
Mar. 2012	Representative Director, President and Chief Operating
Officer (COO), CHUGAI PHARMACEUTICAL CO., LTD.
Mar. 2016	Outside Director, Asahi Group Holdings, Ltd.
Mar. 2018	Representative Director, President and Chief Executive
Officer (CEO), CHUGAI PHARMACEUTICAL CO., LTD.
Mar. 2020	Representative Director, Chairperson and Chief
Executive Officer (CEO), CHUGAI PHARMACEUTICAL
CO., LTD.
Mar. 2021	Representative Director and Chairperson, CHUGAIPHARMACEUTICAL CO., LTD.
Mar. 2022	Senior Advisor, CHUGAI PHARMACEUTICAL CO., LTD.
(present)
Jun. 2022	Outside Auditor, Komatsu Ltd. (present)		Outside Director, Mitsubishi Electric Corporation(present)		Vice Chairperson of Council, Chairperson of
Bio-Economy Committee, KEIDANREN (Japan Business
Federation) (present)
Jun. 2023 Outside Director, Olympus Corporation (present)(Date of birth: May 8, 1960)
Dec. 1987 Joined Abbott Laboratories
Feb. 1998	Director, Quality Control Production Laboratories,
Chemical and Agricultural Product Division, Abbott
Laboratories
Feb. 2007	Corporate Vice President, Global Quality & Regulatory
Affairs, Hospira Inc.
Nov. 2008	Vice President, Corporate Quality, Medtronic Inc.
(currently Medtronic plc.)
Jun. 2014	Senior Vice President, Global Quality, Medtronic Inc.
Nov. 2017	Senior Vice President, Regulatory Affairs & Global
Quality, Medtronic plc.
Jan. 2018	Senior Vice President, Chief Quality and Regulatory
Affairs Officer, Medtronic plc.
Jun. 2023	Outside Director, Olympus Corporation (present)<Important concurrent positions>
Senior Advisor, CHUGAI PHARMACEUTICAL CO., LTD.
Outside Auditor, Komatsu Ltd.
Outside Director, Mitsubishi Electric Corporation
Vice Chairperson of Council, Chairperson of Bio-Economy
Committee, KEIDANREN (Japan Business Federation)

Director, Representative Executive
Officer, Executive Chairperson and
ESG Officer

Director, Representative Executive
Officer, President and CEO

Director

Yasuo Takeuchi

Stefan Kaufmann

Toshihiko Okubo(Date of birth: February 25, 1957)
Apr. 1980	Joined Olympus Corporation
Apr. 2005	General Division Manager, Olympus Medical Systems
Corp.
Apr. 2009	Director, Olympus Europa Holding GmbH
Jun. 2009	Corporate Officer, Olympus Corporation
Oct. 2011	Executive Managing Director and Chairman of theBoard, Olympus Europa Holding GmbH
Apr. 2012	Director, Olympus Corporation (present)		Senior Corporate Managing Officer, Olympus
Corporation		Group President of Group Management Office,Olympus Corporation
		Chairperson of the Board, Olympus Corporation of
the Americas
		
Director, Olympus Corporation of Asia Pacific Limited
Mar. 2013	Administrative Board and Managing Director,
Olympus Europa Holding SE
Apr. 2015	Head of Corporate Management Office, Olympus
Corporation
Apr. 2016	Director, Vice President, Olympus Corporation		
Chief Financial Officer (CFO), Olympus Corporation
		Chief Regional Representative Officer, Olympus
Corporation
Apr. 2019	Representative Director, Olympus Corporation
		
President, Olympus Corporation		
Chief Executive Officer (CEO), Olympus Corporation
Jun. 2019	Representative Executive Officer, President, Olympus
Corporation
Apr. 2023	Representative Executive Officer, Executive
Chairperson, Olympus Corporation (present)		
ESG Officer, Olympus Corporation (present)

98

Olympus Integrated Report 2023

(Date of birth: January 24, 1968)
Sep. 1990	Various roles in operational and strategic HR
functions, Karstadt AG
Oct. 2000	Head of HR Development, Thomas CookMay 2003	General Manager, Human Resources, Olympus
Europa GmbH		
(currently Olympus Europa SE & Co. KG)
Apr. 2008	Managing Director Corporate Division, Olympus
Europa GmbH
Nov. 2011	Executive Managing Director, Olympus Europa SE &Co. KG
Sep. 2013	Managing Director Consumer Business, Olympus
Europa SE & Co. KG
Apr. 2017	Corporate Officer, Olympus Corporation
Apr. 2019	Chief Administrative Officer (CAO), Olympus
Corporation
		Supervisory Board (Chairperson), Olympus Europa
Holding SE
Jun. 2019	Director, Olympus Corporation (present)		Executive Officer and Chief Administrative Officer(CAO), Olympus Corporation
Apr. 2022	Chief Strategy Officer (CSO), Olympus Corporation		
ESG Officer, Olympus Corporation		Director, Olympus (China) Co., Ltd.
Apr. 2023	Representative Executive Officer, President andChief Executive Officer (CEO), Olympus Corporation(present)		Chairperson of the Board, Olympus Corporation of
the Americas (present)(Date of birth: June 1, 1960)
Feb. 1991	Joined Olympus Corporation
Jul. 2005	President and Chief Executive Officer (CEO),Olympus NDT Corporation
Aug. 2011	General Division Manager of the Life & Industrial
Systems, Olympus Corporation
Jun. 2013	Chairperson, Olympus NDT Corporation
Apr. 2014	Corporate Officer, Olympus Corporation
Apr. 2015	Division Manager of the Scientific Solutions Business
Strategy Division, Olympus Corporation
Apr. 2016	Head of the Scientific Solutions Business Unit,
Olympus Corporation
Apr. 2019	Senior Vice President of New Business Development,
Olympus Corporation
Apr. 2021	Senior Vice President of Corporate Planning,
Olympus Corporation
Apr. 2022	Deputy Chief Strategy Officer, Olympus Corporation
Apr. 2023	Assistant to Chief Strategy Officer, Olympus
Corporation
May 2023	Office of Audit Committee, Olympus Corporation
Jun 2023	Director, Olympus Corporation (present)

Olympus strives to foster an environment of integrity and compliance within the organization. We have adopted the
Olympus Global Code of Conduct, which builds on our tradition of over 100 years of innovation, positive contributions
to society, and unwavering commitment to integrity. The Olympus Global Code of Conduct is the foundation for ourpolicies, and our management team and employees act in accordance with this Code in their global corporate activities.

Compliance Management System

Integrity Line (Global Reporting System)

Our Global Compliance function works to raise awareness of
the Olympus Global Code of Conduct and related compliancepolicies by providing management teams and employees withthe resources and training they need to do business withintegrity, treat customers, suppliers, and third-party business
partners fairly, and report concerns when they arise. The
Olympus Group is committed to fostering a business culturethat follows the highest standards of business integrity in all our
relationships. The Chief Executive Officer is responsible forcompliance with applicable laws and regulations within thebusiness operations of the Olympus Group and has appointed
the Global Chief Compliance Officer (CCO) who is responsible
for the Compliance Management System within the Olympus
Group. The Board of Directors and its Audit Committee receive
periodic reports on compliance activities from the CCO, andthey consult with the CCO as needed. The CCO, together withmembers of the Global Leadership Team, ensures that relevantinternal regulations are observed in the regional businesscenters and that compliance activities are carried out inaccordance with the requirements of the management systems
overseen by the CCO and are reflective of best practices.
During fiscal year 2023, the CCO led an organizational design
activity that resulted in the integration of the Risk & Controls,
Compliance, Privacy, and Information Security functions into
the new and more unified Governance, Risk & Compliance(GRC) Function. This enhanced GRC Function andorganizational design, effective April 1, 2023, will improve
collaboration among these subfunctions and further strengthenrisk management for Olympus.

Olympus values a corporate culture of integrity and provides asafe and open workplace where employees can raisequestions and concerns. We provide a global reporting
system, the Olympus Integrity Line, which is available to all
Olympus employees, business partners, and other third parties
who wish to report a concern. This system is managed by anindependent third party. The compliance function maintains across-functional team that meets regularly, collaborating tocontinuously improve the effectiveness of the reporting systemand processes. In fiscal year 2023, improvements included theenhanced tracking of policy violations, the integration of
additional regional reporting of conflicts of interest, and global
adoption of the Olympus Internal Investigations Policy, which
establishes the Global Internal Investigations Committee andprovides the framework for our internal investigations process
as we strive to ensure that legitimate reports of concern will be
investigated and treated according to the same high standards
regardless of location or department. The Global Compliancefunction raises awareness of the reporting system throughconsistent messaging about the Global Code of Conduct andrelated e-learning programs and communications. In fiscal year
2023, we received 809 reports through the Integrity Line orother means. If a concern of misconduct is substantiatedfollowing appropriate review, we take corrective action,
including policy/process remediation, enhanced training andeducation for individuals/groups, issuance of warning toindividuals, and, in serious cases, termination in accordancewith local regulations. In fiscal year 2023, 82.1% of closed
reports were substantiated following review.

Compliance Training
Compliance Management System (As of April 2023)

To raise compliance awareness and promote anunderstanding of important laws and internal rules, as well as
to ensure consistent compliance with them, the Global
Compliance function strives continually to enhancecompliance education programming. Global initiatives forfiscal year 2023 are as follows.

Audit Committee
ReportChief Compliance Officer (CCO)

Global Leadership Team (GLT)
Chairperson: CCO, Members: Regional Chief Compliance Officers,
Chief Privacy Officer, Chief Information Security Officer andother persons designated by the Chief Compliance Officer

EMEA

Details

Americas

Asia
Pacific

China

Japan

GlobalGroup training and e-learning
related to anti-bribery andanti-corruption

Frequency of program: 1
Number of participants: 22,863(attendance: approx. 97%)

Group training and e-learning
related to Olympus Global
Code of Conduct

Frequency of program: 1
Number of participants: 25,516(attendance: approx. 96%)

Olympus Global Code of Conduct: https://www.olympus-global.com/company/philosophy/code.html
Compliance: https://www.olympus-global.com/csr/governance/compliance/99Chapter 03

Our Setup

Communication with Shareholders and Investors

Risk Management

Basic Policy on Information Disclosure

Promotion of Risk Management

Communication with
Shareholders and Investors

Olympus complies with the laws and the Financial Instruments
Exchange rules, and discloses information in compliance
therewith. Olympus also proactively discloses that information
which may have a material impact on its corporate value
evaluation in accordance with Article 27-36 of the Financial
Instruments and Exchange Act (the so-called “Fair Disclosure
Rules”) and the Internal Information Disclosure Criteria
regardless of whether such disclosure is not required by thelaws or the rules. Olympus’ disclosure of information, as
required by the Timely Disclosure Rules of the Tokyo Stock
Exchange, will be disclosed through the Timely Disclosure
network (TDnet) of the Tokyo Stock Exchange in general.
Furthermore, we proactively disclose any information that is
not required by laws or rules through various ways, includingpress releases, websites, integrated report, and voluntary
timely disclosure.

Seeking to facilitate sustainable growth and medium- tolong-term enhancement in corporate value, the Chief Executive
Officer (CEO) and the Chief Financial Officer (CFO) play acentral role in our proactive efforts to communicate withshareholders. The investor relations function supports these
efforts and create systems for sharing information within the
Company and feedback from shareholders to management.
For institutional investors, we hold meetings quarterly to
explain topics, focusing on financial results and forecasts. We
also proactively hold IR events for participants to understandour products and strategy. We hold individual meetings withinstitutional investors and analysts both in Japan and overseas,
and we conducted over 900 meetings in fiscal year 2023.
Through these activities, we strive to promote understandingof our Company.

Investor Relations Activities
The following investor relations activities were conducted in fiscal year 2023.
Activity

Times
conducted

Briefing sessions on results for
institutional investors and analysts
Factory tour

4

Meetings held quarterly to explain topics, focused on financial results
and forecasts

1

Factory tour of Aizu Olympus Co., Ltd., which manufactures
gastrointestinal endoscopes and other products

3

Meetings for institutional investors in which the CEO and the CFO visit
overseas sites* Includes roadshows held remotely

8Participation in and meetings at conferences held by securities
companies in Japan and overseas

Overseas IR roadshows

Conferences held by securities companies(including overseas conferences)
Individual meetings with institutional investors and analysts
Officers (executive officers, outside directors, etc.)
IR Department

Details

959
113
846

Individual meetings held with officers and/or IR function representatives(including meetings conducted at overseas IR roadshows andconferences)

Giving Feedback to Management and the Board of Directors
The IR function makes reports to the CEO and CFO about
dialogue with analysts and institutional investors at any time.
Every six months, feedback is given at the Group Executive
Committee and Board of Directors meeting about evaluations
and concerns related to capital markets by means of an IR
Activities Report. Management and the IR function also work
to improve IR activities including efforts to make dialogue
productive and improve and widen disclosure materials byconsidering the opinions of analysts and institutional investors.
The following shows the main concerns of analysts andinstitutional investors for the fiscal year 2023.

100

Olympus Integrated Report 2023

Impact of the lockdown, etc. in Chinese market
	Impact of inventory and price increases for raw materials
and parts including semiconductors on financial performance	Content of warning letters received from the U.S. Food andDrug Administration and Olympus’ response	Financial KPI for the new company strategy
	Capital allocation and shareholder return policy

The Olympus Group is implementing risk management
initiatives to achieve its basic management policy, which
includes its corporate philosophy, company strategy, etc.
Specifically, based on the “Policy of Risk Management andCrisis Response” and related rules, the Olympus Group isundertaking risk management from the perspective of both“offense” through active and sound risk taking leading tosustainable growth and value creation for Olympus
Corporation and “defense” to prevent illegalities and accidents.
A crisis management process has also been established
to minimize the impact of unforeseen incidents on
corporate value.

Risk Management
In terms of risk management systems, we have established a
global risk management system, defined categories of risks
that could affect the achievement of Olympus Corporation’s
business targets as well as the company strategy, andidentified the executive officer responsible for each risk
category (establishing risk assurance). Each executive officer
executes the necessary measures (organizational structure,process preparation, focus measures, etc.) to keep within theacceptable range of their designated area of risk.
In April 2023, we launched a new organization to integrate
the four functions (Risk and Control, Compliance, Privacy,
Information Security) related to GRC (Governance, Risk,
Compliance). In order to enhance coordination among thedifferent functions, we have worked to further strengthen ourrisk management system with respect to execution capabilities.
In addition, risk management processes are operated witha plan-do-check-act (PDCA) cycle of risk assessment(identification, analysis and evaluation of risk, and setting
countermeasures), implementation of risk countermeasures,monitoring and reporting, and improvement. Risk assessment
is linked to the process for formulating the fiscal year plan, withrisk evaluated using common companywide evaluation
standards, and companywide risks visualized and uniformly
managed. Also, the status of response to the Olympus
Group’s key risks are periodically reported to the Olympus
Group Executive Committee (GEC), the Board of Directors,
and the Audit Committee.

Crisis Management
Any major incident that is highly likely to affect business
management in the Olympus Group is reported promptly tothe president and other senior management and handledappropriately by the managers in coordination with relevant
divisions. Furthermore, we continue to conduct annual training
exercises in anticipation of emergencies, ensuring the ongoing
review and refinement of response processes. Our aim is tominimize damages in the event of large-scale natural disasters
and similar incidents.
In terms of a business continuity plan (BCP), we strive todevelop practical plans that emphasize the value chain. To
support this, we have established the “BCP/BCM
Development Guideline” and consistently work on improving
BCP practices. Additionally, we conduct regular education andtraining programs to enhance the effectiveness of our BCP.
Moving forward, we will continue to prioritize the healthand safety of our employees, healthcare professionals,
patients, and communities, while implementing the best
measures to maintain the supply of our products and services.

Risk Management Structure (FY2023)

Board of Directors

Audit Committee

Supervision

ReportOrder/Report on crisis

Chief Executive Officer

Crisis Response Team

Responsible for Group Risk Management(Activated in the event of a crisis)

Order/Report on risk managementin each division/function/region
Order/Report on enterpriserisk management

Head of Governance, Risk and Compliance

Executive Officers

Chief Officer of Risk Management

Responsible for own risk categories

Order/Report on enterpriserisk management operation

Order/Report on risk managementin each division/function/region

Risk and Control, Global

Each Division/Function/Region

Risk Management Promotion Office

Responsible for managing own risks

101

Our Setup

Chapter 03

Risk Management

Risk Management to Achieve Basic Management Policy

Companywide List of Significant Risks

Plan

Do

Formulation of the Fiscal Year Plan

Business Execution

Policy, Goals, and Priority Measures

Implementation of Priority Measures

Risk Assessment

Risk Treatment

Risk identification, analysis, evaluation andsetting countermeasures

Implementation of risk countermeasuresthrough business execution

Business
Environment

Market

PDCA

Act

Check

Review and Improvement

Management of Business Execution

Review for Policy, Goals, and Priority Measures

Progress Management for Business Execution

Review for Risk Recognition andCountermeasures

Business
Activities

Monitoring and Reporting
Monitoring for the key risks
Updating internal/external environment recognition
Semi-annual reporting

Review through reporting to the Group
Executive Committee (GEC), the Board of Directors,
and the Audit Committee

Type

Impact/Urgency

Trend

Risks Associated with Medical Administration, Tightening of
Product-related Laws and Regulations and Prevention

Opportunities &ThreatsA↑

Risks Associated with Market Competition

Opportunities &ThreatsA↑

Risks Associated with Economic Environment

Opportunities &ThreatsC↑

Risks Associated with Foreign Currencies Exchange Rate Fluctuations

Opportunities &Threats

D↑

Risks Associated with Financing

Opportunities &Threats

D→

Risks Associated with Development Activities

Opportunities &ThreatsA→

Risks Associated with Supply Chain

Opportunities &ThreatsA→

Risks Associated with Business Collaborations, Corporate Acquisitions,
Sale of Business and Overall Investment and Others

Opportunities &ThreatsA→

Threats

D→

Category

OverallManagement

Significant Risks

Risk

Risks Associated with Compliance
Risks Associated with Litigation

Threats

D→

Risks Associated with Information Security

ThreatsA↑

Risks Associated with Human Resources

Opportunities &ThreatsA↑

Threats

D→

Opportunities &ThreatsC→

ThreatsC↑

Risks Associated with Taxation
Sustainability Risks, Including Those Related to Climate andthe Environment

The Olympus Group conducts risk assessments at the time ofannual planning to identify significant risks that could significantly
affect the achievement of the company strategy and businessgoals. For risks that are particularly important from a companywide perspective, the management team consider their priority

based on their impact on our management and their degree ofurgency, and organize them into the following risk map toensure common awareness throughout Olympus. Please refer
to our website for details of each risks.
Business Risk

https://www.olympus-global.com/ir/policy/risk.html

Natural Disasters, Infectious Diseases, Civil War and Other Risks

Our awareness of the basic environment that affects the entire Olympus Group is provided below, and we identify risk andevaluate response policies both as an entire company and on an individual organizational level.

Companywide Significant Risk Map
Recent Changes in the Business EnvironmentA conomic Environment
ESustainability Risks, including Those Related to Climate
and the EnvironmentNatural Disasters, Infectious Diseases, War, Civil War andOther Risks

 isks Associated with Medical Administration, Tightening ofR
Product-related Laws and Regulations and Infection Prevention
Market Competition
Development Activities
Supply Chain
Business Collaborations, Corporate Acquisitions, Sale ofBusiness and Overall Investment and Others
Information Security
Human Resources

High

C

ImpactD

Middle oreign Currencies Exchange Rate Fluctuations
FFinancing
ComplianceLitigation
Taxation

Middle102

B

Olympus Integrated Report 2023

Urgency

Political

Geopolitical

The possibility of export controls on cutting-edge technologies caused by intensifying trade friction
between the U.S. and China impacting the business performances of the Olympus Group.
We have prepared response policies (BCP formulation, etc.) that considers war and conflict.

Economical

Macro-economy

Global inflation, interest rate fluctuations, and sudden exchange fluctuations rooted in complex factors
such as international economic friction, the levying of economic sanctions, shortages of key raw
materials, and deterioration in supply-and-demand balances.

SocialStakeholders

Demands from the standpoint of sustainability are increasing from global and regional stakeholders,
and the legal rulemaking around information disclosure is accelerating.

Technology

New technologies

Diversification of business models and competitors. Acceleration of DX and robotics, rapid
commercialization, evaluation of medical applications, and legal rulemaking for AI.

High

103

Data Section

10-Year Financial/Non-financial Data (For the fiscal years as of/ended March 31)(Millions of yen)
From the second quarter of fiscal year 2021, the Imaging Business has been categorized as a
discontinued operation. Accordingly, we restated some figures for fiscal year 2020. From the second
quarter of fiscal year 2023, the Scientific Solutions Business has been categorized as a discontinued
operation. Accordingly, we restated some figures for fiscal year 2022.

Revenue
Selling, general and administrative (SG&A) expenses
Percentage of revenue (%)
Operating profit
Percentage of revenue (%)
Profit before tax
Net income (loss) (JGAAP)/Profit attributable to owners of parent (IFRS)
Percentage of revenue (%)
EBITDA margin*1 (%)
EBITDA margin (Medical Business)*2 (%)
R&D expenditures
Percentage of revenue (%)
Capital expenditures
Depreciation and amortization
Amortization of goodwill
Financial indicators
Total assets*3, 8
Total net assets (JGAAP)*3/Total equity (IFRS)
Equity ratio (JGAAP)/Ratio of equity attributable to owners ofparent to total assets (IFRS)*8 (%)
Interest-bearing debt
Net debt
Inventories*8
Inventory turnover period*4 (months)
Cash and cash equivalents at end of year
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Return on equity (ROE) (%)
Return on assets (ROA) (%)
Net income (loss) per share*5 (JGAAP)/
Profit attributable to owners of parent per share (IFRS) (yen)	Total equity per share*5 (JGAAP)/
Equity attributable to owners of parent per share (IFRS) (yen)Price earnings ratio (PER)*6 (times)
Price book-value ratio (PBR) (times)
Outstanding market value (billions of yen)
Cash dividends per share*7 (yen)Average exchange rate
U.S. dollar/Yen
Euro/Yen
Non-financial indicators
Number of employees*9
Overseas employees as a percentage of employees (%)
Percentage of women in managers in Japan*10, 11 (%)
Percentage of women in global senior management positions*12 (%)
Percentage of global management positions held by women*13 (%)
Percentage of eligible male employees taking paternity leave in Japan*14 (%)
Percentage of employees with disabilities*15 (%)

JGAAP
2014

2015

2016

2017

2017

2018

2019

2020

2021

2022

2023

713,286
367,01151.5%
73,445
10.3%
16,425
13,627
1.9%
16.8%
29.7%
66,796
9.4%
37,81036,8509,457

764,671
398,889
52.2%
90,962
11.9%
8,934(8,737)
—
18.5%
29.1%
74,101
9.7%
47,743
41,2199,421

804,578
430,77353.5%
104,464
13.0%
70,80062,594
7.8%
19.2%
29.5%
81,41510.1%
64,44539,912
9,867

748,050
414,855
55.5%
76,487
10.2%
81,68678,191
10.5%
17.4%
27.4%
79,178
10.6%
49,34744,658
8,642

740,557
397,697
53.7%
71,192
9.6%
62,48142,783
5.8%
16.9%
27.4%
79,178
10.7%
60,68354,290—786,497426,59654.2%
81,02910.3%
76,66557,064
7.3%
17.0%
26.5%
89,46911.4%
65,25552,913—

793,862
437,51055.1%
28,281
3.6%
20,117
8,147
1.0%
11.0%
24.9%
93,968
11.8%
66,83058,669—755,231
381,171
50.5%
92,20012.2%
86,61751,670
6.8%
21.1%
29.3%
87,75011.6%
74,67367,377—

730,544
357,032
48.9%
81,985
11.2%
76,81012,918
1.8%
19.4%
27.7%
81,79411.2%
98,93559,559—750,123
357,51047.7%
146,18819.5%
141,701
115,742
15.4%
27.2%
33.2%
75,19010.0%
66,19357,851—

881,923
420,54747.7%
186,60921.2%
182,294
143,432
16.3%
28.4%
31.4%
76,866
8.7%
72,02363,592—

1,027,475
331,284

1,081,551
357,254

1,000,614
384,283

991,062
430,880960,032
396,228

978,663444,259

932,030
442,387

1,015,663
371,958

1,183,453
395,480

1,357,999
511,362

1,508,308
641,234

32.1%

32.9%

38.2%

43.3%

41.1%

45.2%

47.3%

36.5%

33.3%

37.6%

42.4%

415,831
163,710
98,595
1.7
251,344
72,388(20,273)(39,693)
5.7%
1.4%

354,421
144,546
107,387
1.6
209,809
66,811(39,612)(70,185)(2.6)%(0.8)%

321,138
154,584
111,558
1.6
166,323
48,621(52,897)(33,870)
17.0%
6.0%

286,357
86,926124,0641.9
199,431
90,194(8,305)(44,244)
19.3%
7.9%

285,970
86,505
125,319
1.9
199,465
102,052(20,814)(43,615)
11.3%
4.4%

247,974
56,735
139,3092.0
191,239
95,146(53,312)(51,058)
13.6%
5.9%

181,335
66,909153,623
2.2
114,563
66,943(60,296)(82,948)1.8%
0.9%

280,915
118,421
167,596
2.6
162,494
133,544(62,430)(19,462)
12.7%
5.3%

355,264
137,786
158,895
2.7
217,478
124,122(118,918)
40,8003.4%
1.2%

386,127
83,555
167,368
2.3
302,572
169,729(71,016)(40,667)
25.6%
9.1%

340,057
170,728
162,994
2.2
169,329
98,490(58,414)(143,178)
24.9%
10.0%

41.05

(25.53)182.90228.47125.01

41.71

5.97

39.37

10.05

90.22

113.22962.8380.2
3.4
1,127.4—

1,038.64—
4.3
1,530.0
2.5

1,117.24
23.9
3.9
1,499.2
4.25

1,252.96
18.7
3.4
1,466.6
7

1,153.45
34.2
3.7
1,466.6
7324.2524.2
3.1
1,384.5
7323.06201.3
3.7
1,647.8
7.5

288.3939.7
5.4
2,141.4
10306.72228.0
7.5
3,140.8
12400.7525.9
5.8
3,039.014510.6220.5
4.5
2,906.3
16

100.24134.37109.93138.77120.14132.58108.38118.79108.38118.79110.85129.70110.91128.41108.74120.82106.06
123.70112.38130.56135.47140.9730,702
62.5%
1.3%
—
—
—
2.0%

31,540
63.2%
1.7%
—
—
—
2.1%

33,336
63.3%
1.6%
—
—
—
1.9%

34,687
63.7%
2.1%
—
—
—
2.1%

34,687
63.7%
2.1%
—
—
—
2.1%

35,933
63.7%
2.4%
—
—
—
2.2%

35,124
61.9%
3.3%
—
—
—
2.2%

35,174
61.3%
3.6%
8.4%
—
—
2.3%

31,653
57.2%
4.6%
10.8%
—
—
2.6%

31,557
59.3%
6.0%
14.2%
—
—
2.6%

32,805
60.9%
7.2%
—
22.7%
70.2%
2.8%

*1	At the Company, EBITDA is calculated using the following assumptions: EBITDA = Operating profit + Depreciation and amortization that is included in cost of sales or SG&A expenses + Amortization of goodwillthat is included in SG&A expenses
		 EBITDA margin = EBITDA / Revenue*2	At the Company, EBITDA (Medical Business) is calculated using the following assumptions: EBITDA = Segment profit in the Medical Business + Depreciation and amortization that is included in cost of sales or
SG&A expenses + Amortization of goodwill that is included in SG&A expenses
		 EBITDA margin (Medical Business) = EBITDA (Medical Business) / Revenue*3	In line with the issuance of IAS No. 19 “Employee Benefits” (revised on June 16, 2011) to be applied for fiscal years beginning on or after January 1, 2013, certain overseas subsidiaries adopted IAS No. 19
effective from the fiscal year ended March 31, 2014, and changed their method of recognizing actuarial gain or loss. This change has been applied retroactively to the March 31, 2013.
*4	The revenue used to calculate the inventory turnover period for fiscal year 2020 and fiscal year 2022 is for continuing operations only.
*5	The Company conducted a stock split at the ratio of four shares for one ordinary share on April 1, 2019. “Profit attributable to owners of parent per share” is expressed with the figure after the stock split.
The figure for the fiscal year ended March 31, 2019 is recalculated using the same method.
*6 Price earnings ratio (PER) for the fiscal year ended March 31, 2015 is omitted as the Company recorded net loss for these fiscal years.

104

Olympus Integrated Report 2023

IFRS

*7	The Company conducted a stock split at the ratio of four shares for one ordinary share on April 1, 2019. Figures prior to the year ended March 31, 2019 have been converted to align with the post-stock split
standard.
*8	In fiscal year 2022, the consolidated statement of financial position was retrospectively adjusted to reflect the adjustments to the provisionally measured fair value of the assets acquired and liabilities assumed in
the business combination. Accordingly, the related indicators for fiscal year 2021 are presented after such adjustments have been reflected.
*9 Due to a change in the standard for the number of personnel in some regions from the first quarter of fiscal year 2024, the figure for fiscal year 2023 has been retroactively revised.
*10	Managers of Olympus Corporation for fiscal year 2023, as of March 1, 2023. Prior to fiscal year 2022, figures are based on the definition of each fiscal year.
*11 Seconded employees are counted as employees of companies from which they were seconded.
*12 The percentage within global senior management as of August 1, 2020 for fiscal year 2020, July 1, 2021 for fiscal year 2021, and July 1, 2022 for fiscal year 2022.
*13 Figures for managers of Olympus Group as of March 1.
*14 Eligible male employees of Olympus Corporation taking paternity leave.
*15	Through fiscal year 2019, figures are as of June 1 of each respective year, and from fiscal year 2020, the figures are as of March 31 of each respective year for individuals in Japan (at eight special-purpose
subsidiaries).

105

Data Section

Corporate Information/Stock Information (As of March 31, 2023)
Corporate Information

The Role of Integrated Report

External Evaluations/
Commitment to External Initiatives(As of July 2023)

Company Name

Olympus Corporation

Established

October 12, 1919

Head Office

Shinjuku Monolith, 3-1
Nishi-Shinjuku 2-chome, Shinjuku-ku,
Tokyo 163-0914, Japan

Capital¥124,643 million

Number of Group Companies

108 (Excluding Olympus Corporation, 105
Subsidiaries, and 3 Affiliates)

Consolidated Headcount32,805 (Excludes temporary employees,
average of 786)

Non-Consolidated Headcount

2,727

Websitehttps://www.olympus-global.com

Securities Identification Code7733

Stock Exchange Listing

Tokyo Stock Exchange

Fiscal Year-End

March 31

General Meeting of
Shareholders

June

Share Trading Unit

100

Number of Shares Issued

1,266,178,700

Number of Shareholders

58,910Transfer Agent for
Common Stock

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8233, Japan

Inclusion in ESG Indexes

Dow Jones Sustainability World Index
Dow Jones Sustainability Asia Pacific Index

Olympus Global Homepage

FTSE4Good Index Series
FTSE Blossom Japan Index
FTSE Blossom Japan Sector Relative Index

Financial

Provides informationon the Olympus Groupsuch as management
information, productinformation, andnon-financial
information.

Secured an “A+” rating from Rating andInvestment Information, Inc. (R&I).

Secured a “BBB+” rating from S&P Global
Ratings Japan Inc. (S&P)
Secured a “Baa2” rating from Moody’s
Japan K.K. (Moody’s)

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

Sustainability
Presents the
Olympus Group’s
detailed ESG
information.

Obtained a A- rating in the climate change
survey and a B rating in the water security
survey by CDP Worldwide, an international
NGO that aims at the realization of asustainable economy (2022 for Olympus).

Listed in White 500, the CertifiedHealth and Productivity Management
Organization Recognition Program(seven consecutive years since 2017
for Olympus and 2021 for Olympus
Marketing).

Selected by CDP as a CDP 2022 Supplier
Engagement Leader, the highest rating in the
Supplier Engagement Rating (SER), which
evaluates how effectively companies areworking with their suppliers to address
climate change challenges (two consecutive
years since 2021 for Olympus).

Listed in the Certified Health andProductivity Management
Organization Recognition Program(three consecutive years since 2021
for Aizu Olympus and in 2020, 2022,
and 2023 for Olympus Marketing).

Received Platinum Kurumin certification from
the Ministry of Health, Labour and Welfare as
a company with excellent initiatives tocombine work and childcare and to promote
ongoing initiatives (Olympus in 2022, andOlympus Terumo Biomaterials in 2021).
Received Kurumin certification from the
Ministry of Health, Labour and Welfare as acompany with excellent initiatives to combine
work and childcare (Olympus Marketing in
2020, and Aizu Olympus 2022).

Received Eruboshi certification from
the Minister of Health, Labour andWelfare as a company that actively
promotes women workers (Eruboshi
Grade 3 for Olympus in 2019).

Received the Silver rating under the PRIDE
Index 2022, a Japanese index to evaluate a
corporation’s performance in LGBTQ
inclusion (2022 for Olympus).

Support for the Recommendations of
the Task Force on Climate-related
Financial Disclosures (TCFD).

Certified as a Sports Yell Company (2023 for
Olympus, Olympus Marketing and Olympus
Terumo Biomaterials).

Participates in the United Nations
Global Compact.

Composition of
Shareholders

Principal Shareholders

Number ofshares held

Percentage ofshares outstanding

The Master Trust Bank of Japan, Ltd.
(trust accounts)

259,260,800

20.68%

Custody Bank of Japan, Ltd. (trust accounts)

96,219,200

7.68%

JP MORGAN CHASE BANK 385632

81,646,548

6.51%

SSBTC CLIENT OMNIBUS ACCOUNT

52,109,662

4.16%

Shareholder name

This Integrated Report compiles important informationthat includes non-financial information in addition tofinancial information and aims to provide aneasy-to-understand explanation of the value Olympus
creates. For more detailed information, please refer tothe following corporate websites and media.

2.54%
4.83%

39,509,300

3.15%

Nippon Life Insurance Company

21,258,572

1.70%

STATE STREET BANK WEST
CLIENT-TREATY 505234

21,097,112

1.68%

MUFG Bank, Ltd.

17,522,344

1.40%

JP MORGAN CHASE BANK 385781

16,538,901

1.32%

THE BANK OF NEW YORK MELLON AS
DEPOSITARY BANK FOR DEPOSITARYRECEIPT HOLDERS

16,043,055

1.28%

1.00%
Olympus Medical Business

38.37%SMBC Trust Bank Ltd.
(Sumitomo Mitsui Banking Corporation’s
retirement benefit trust account)

2.11%

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

51.15%

Introduces Olympus’
strengths in as well asbasic knowledge
about the Medical
Business.

https://www.olympus-global.
com/ir/data/medical.html
Foreign institutions and individuals
Japanese financial Institutions
Japanese individuals and others
Japanese securities firms
Other Japanese corporations
Treasury stock

MEDICAL
BUSINESS
Olympus Medical BusinessNote: The holding ratio is computed by excluding treasury stock (12,641,218).

106

Olympus Integrated Report 2023

103