OLYMPUS Investor Day 2018

US Medical Business Presentation
Nacho Abia
Executive Officer
Regional Representative Officer, Americas
Olympus Corporation
September 5, 2018

Disclaimer


2This material 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 performance and involve known andunknown risks, uncertainties, future business decisions, and other internal and external factorsthat 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.
Additionally, this information is subject to change without notice. Accordingly, other information
should be used in addition to this material when making investment decisions.
These materials contain information on products that have not yet been approved under The
Law on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical
Devices (including products still under development). This information is not provided for thepurposes of advertising or offering medical advice. This information is purely meant to offer
examples of Olympus’ R&D activities. Moreover, the Company does not guarantee that products
described in these materials will actually be marketed.
Olympus Corporation assumes no responsibility for any damage resulting from the use of thismaterial.

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Agenda3•

Our Story in the Americas•

Our Groundwork for Success•

Our Medical Business2018/9/5

No data copy / No data transfer permittedOur Story in the Americas

Olympus Corporation of the Americas Overview

ESTABLISHED1968
LAKE SUCCESS, NYOVER 20locations in Northand South America

HEADQUARTED IN

CENTER VALLEY,PENNSYLVANIA

5,300+EMPLOYEES

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Olympus Corporation of the Americas Financial Impact
O LY M P U S C O R P O R AT I O NApprox.

NET SALES CONTRIBUTION
BY REGION$7 billion

NET SALES

Asia - 20%

Americas - 33%

Other - 2%

O LY M P U S C O R P O R AT I O N
OF THE AMERICASApprox.

Japan - 20%$2.6 billion

Europe - 24%

NET SALES
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33%*SP5236V01

OCA’S CONTRIBUTIONTO TOTAL CORPORATION

Olympus Corporation of the Americas Structure
Olympus Corporationof the Americas (OCA)

Business & Governance
Manufacturing Business Centers

Shared Services

OSTA

OAI Olympus America Inc.

Olympus Surgical Technologies America

OSSA

Sales Business Centers

CORPORATE OFFICEMSG Medical Systems GroupCPG Consumer Products GroupOlympus Scientific Solutions Americas

SSG Scientific Solutions GroupOCTA
Olympus Communication Technology of America

OCI Olympus Canada Inc.

ORA
Olympus Respiratory America

LAD Latin America DivisionISM

OBL Olympus Optical de Brasil Ltda.

Image Stream MedicalOLA Olympus Latin America
OMS Olympus America de Mexico

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Our Groundwork for Success
Investments
Efficiency
PeopleIntegrity

Investments inOur Business

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Investments Overview (April 2013 – March 2018)

1SAP
IMPLEMENTATIONC a p i t a l I n ve s t m e n t +4

OCA BRAND
ADVERTISING

5

ASSET
MANAGEMENT

Incurred over this period

A n n u a l C o s t ( s vc & m a i n t )OCA HAS BEEN ABLE TO
INVESTIN LARGE SCALE
PROJECTS WHILE

2NEW FACILITIESB r o o k l yn P a r k

Incurred over this period

Quebec

MAINTAINING LEVEL

Bartlett

EXPENSES YOY

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ADMINISTRATIVERELATED COSTS
I n c u r r e d o ve r t h i s p e r i o d

6SALES FORCE
Headcount and infrastructure

Investments in Business Development

Distribution of
MI Tech Stents

Distribution ofEleview
Apr 2017

Acquisition ofImage Stream
Medical

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Sep 2017

Oct 2017

Distribution ofAir-WaterButtons

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Dec 2017

Acquisition ofCybersonics
Mar 2018

Co-Developmentof AI software
Algorithm

Apr 2018

Investments in Emerging Markets

Olympus Latin America Division（LAD）
Relaunched in February 2014
Encompasses:•

Olympus Latin America (including Distributor relationships)•

Olympus Mexico•

Olympus Brazil

Achievements:•

Recruited and retained solid talent•

Strengthened corporate governance•Achieved growth despite challenging environment

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LAD Growth Potential+14%+54%+32%+27%+24%

GI-ET

Gynecology

Urology+69%+52%% = Growth per Year
FY 2016 Actual+74%+63%

FY 2017 Actual
FY 2018 Actual

ENT

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EnergySP5236V01+7%

Efficiency

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Business
P&L
strategy responsibility

Functional strategy
Functions
Resource management

Globalization

Organizational
Structure

Business
Process
Reengineering

E3(Effective,Efficient,Excellent)

One Olympus

People17 2018/9/5

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Trueto LIFE
TruetoLIFE

Culture andEmployee
Experience

Core Values

TalentDevelopment

Integrity

Doing Business the Right Way

Enhancement of Regulatory Programs
Stewardship through Monitoring
Strategic Focus on Infection Prevention

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Our Medical BusinessU.S. Medical Business Net Sales Growth (July 2017 – July 2018)
OCA Sales YTD
19%Medicalproducts
Other products

81%

19.8%

20.8%

ENT

SE & ENG

12.1%
7.7%
2.9%
MP22 2018/9/5

3.3%
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UGNET

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U.S. Healthcare Industry Trends

Source: McKinsey & Company
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U.S. Healthcare Industry Trends Impacting Our Business1. Greater Focus on Hospital Networks

2. Shift to Value-based Medicine

3. Voice of the Customer

4. Patient, Provider, Payer

5. Triple Aim

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Complete Solution Partner

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GI & Respiratory Business – Looking Forward

1. Therapeutic Intervention

2. Infection Prevention

3. Artificial Intelligence

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Surgical Business – Looking Forward

1. Enterprise Integration andImage Management

2. Office-based Technology and Procedures

3. Big Screen Surgery

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In Summary
True to LIFE
1. Olympus has been investing in the Americas overthe last several years to secure future success while
creating an efficient and talented operation.
2. Our extremely solid position in our traditional
endoscopy business together with ambitious portfolio
enhancement plans will be leveraged to grow intherapeutic disciplines and to realize our potential as a
global medical technology provider.
3. We are in a perfect position to continue fulfilling ourpromise to patients of “Safer, Healthier and MoreFulfilling Lives” while helping healthcare providers toincrease their efficiency through our products andtechnology, and by doing this, increase Olympus
Enterprise Value.

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