Medium-Term Management Plan

Olympus Corporation announced a new medium-term management plan (2016 Corporate Strategic Plan(16CSP)) on the 30th of March 2016, a new five-year, medium-term management plan slated to begin in April 2016. Under this plan, Olympus will work to improve corporate value by strengthening the foundations of the business and developing an aggressive business portfolio for sustainable growth beyond its 100th anniversary in 2019.

Medium-Term Management Plan (16CSP)

Presentation materials and videos for "Investor Day" (2017/9/13)

Presentation materials and videos for 16CSP "OLYMPUS IR DAY" (2016/3/30)

Positioning of 16CSP

Strengthening foundations and developing an aggressive business portfolio for sustainable growth beyond the 100th anniversary (2019)

Positioning of 16CSP

In the medium-term vision (From the fiscal year ending March 31, 2013 ~), we were aiming to enhance corporate value by recovering the trust that was damaged by the scandal and worked on restructuring the management. 16CSP is, beyond the 100th anniversary (2019), strengthening foundations and developing an aggressive business portfolio for sustainable growth. As a result, we are aiming to become leading global player in medical field in the future.

Basic Policies

"Business to Specialist" Company

Olympus defines a "Business to Specialist" Company as a company that can accurately understand the demands and unmet needs of highly specialized expert and aspirational customers (specialist) and respond by proposing and providing compelling solutions in a timely manner. Over the years, Olympus has continued to exercise its strengths as a "Business to Specialist" Company to grow by earning the trust of customers.

Going forward, we will continue to utilize these strengths as we seek to become an even-more valuable partner to our customers by calling upon our innovative thinking, expertise in advancing technology, operational excellence, and unsurpassed integrity.

One Olympus

We will maximize the performance of the entire Olympus Group by sharing values and strategies and making full use of management resources on a global and Groupwide basis.

Driven by this commitment, Olympus will strive to meet or exceed the expectations of all of its stakeholders through sustainable growth and act as a good corporate citizen, thereby contributing to society by making the lives of people around the world healthier, safer, and more fulfilling.

Priority Strategies

We have defined the following six priority strategies to ensure that we can strengthen foundations and develop an aggressive business portfolio for sustainable growth while achieving our management targets.

Take action to grow businesses

Expand lineups and promote sales of strategic products
Shift from installation based medical business model to procedure based medical business model
Pursue growth opportunities in peripheral businesses

Acquire necessary management resources in a timely manner and fully leverage these resources

Manage portfolio of businesses in fields with low growth potential and shift management resources to growing business fields
Recruit and develop capable human resources in a timely manner
Optimize global R&D systems and production systems (production site planning)

Advance forward-looking preparations to realize continued growth

Develop businesses and conduct upfront investments from a long-term perspective (technology research, exploration, and development)
Promote development of new businesses to advance minimally invasive treatments
Advance long-term measures for expanding businesses in emerging countries

Pursue further business efficiency improvements

Reduce costs and improve efficiency by optimizing product lineups
Standardize processes and improve inventory management

Enhance management on a global and Groupwide basis

Strengthen and improve the efficiency of Functions
Develop a mindset to realize One Olympus

Strengthen QA/RA and internal controls and promote strict compliance

Enhance quality management systems and organizations to further business expansion in medical field
Further strengthen internal control functions
Construct and implement compliance systems suited to a truly global company

Management Goals

Monitoring the outcome of the strategy carried out by four indicators, Return on Equity (ROE)", "Operating Margin", "EBITDA growth rate" and "Equity Ratio". Aiming high standards, while keeping these balances.

Management Goals

Supplementary Materials

Evaluation of First Year of 16CSP

Key Points	One-Year Progress (Fiscal 2017)
Key Performance Indicators	Increased ROE to 19% (up 2 pts. year on year), higher than the target of 15% Achieved equity ratio of 43% (up 5 pts. from Mar. 31, 2016), made improvements to financial position moving us toward target of 50% Posted slow growth in operating margin (profitability) and EBITDA (business growth) primarily due to impacts of foreign exchange influences
Strategic Measures (Priority Strategies 1–3)	Introduced major new products in Medical, Scientific Solutions, and Imaging businesses to fuel business growth Enhanced network of endoscope training centers centered on emerging countries (Thailand for Southeast Asia, Dubai for the Near and Middle East) to lay groundwork for sustainable growth in the future Commenced massive reforms entailing reorganization, consolidation, and establishment of Medical Business repair bases in areas centered on Europe and the United States Ramped up initiatives in the operating room integration business through the acquisition of Image Stream Medical, Inc., to drive surgical device field growth
Corporate Constitution Reinforcement, Structural Reforms (Priority Strategies 4–6)	Started Business Process Reengineering Project to improve productivity, profitability, and efficiency Entrenched mind-set based on matrix style of business operation and began cross-business application of best practices Reinforced global management system by appointing senior managers from subsidiaries in Europe and the Americas to executive management team Kicked off Global Brand Project for reforming corporate culture Began establishing internal control framework to serve as foundation for enhancement of global and Groupwide corporate governance Assembled Global Compliance Operation Team to entrench compliance awareness on a global scale Reinforced quality and regulatory assurance function frameworks and organizations through massive staff expansion

Progress on Management Goals

KPI	FY2017 (Results) (IFRS)	FY2021 (Targets)
ROE	11%	15%
Operating Margin	10%	15%
EBITDA	¥124.0 billion	¥240.0 billion (Double-digit growth)
Equity Ratio	41％	50％

Performance Targets

(Billions of Yen)

	FY2021 (Forecast)
Net Sales	1,100
Operating Income	180
Net Income	120

Targets for Business Segment

(Billions of Yen)

	Elimination or Corporate	-70
		FY2021 (Forecast)
Net Sales	Medical	900
	Scientific Solutions	130
	Imaging	55
	Others	15
	Total	1,100
Operating Income	Medical	235
	Scientific Solutions	13
	Imaging	2
	Others	-70
	Total	180

* FY2021 forecast have been calculated using International Financial Reporting Standards (IFRS)

Updated: Sep 13, 2017

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