ESG Strategy

• Company Strategy
• Materiality Topics at Olympus

Company Strategy

Formulation of a new Company Strategy focused on
“what lies ahead” of transformations to date toward our growth as a global MedTech company

Olympus announced the corporate transformation plan “Transform Olympus” alongside the  Corporate Strategy in 2019. In the three years which followed this, we achieved significant transformations in all aspects of our business structure, organizational and operational model, employee awareness, corporate culture, and other relevant areas. As a result, our adjusted operating margin has significantly improved from its level of 9.2% in FY2019^*, to 20.0% in FY2023.
Based on these transformations, in May 2023, Olympus announced a new company strategy toward achieving further growth as a global MedTech company. Going forward, in the new stage of “Shift to Grow,” we aim to further solidify our growth trajectory by focusing on areas of disease which will be most conducive to Olympus demonstrating its best values, as well as by investing in the cultivation and development of new products and technologies that will contribute to improvements in healthcare standards. In addition, Olympus are focusing on quality assurance (QA) and Regulatory Affairs (RA), providing our high-quality products and services in line with long-term strategies, and striving to achieve sustainable business growth and increase corporate value, with patient safety set out as our foremost priority, and will thereby work actively to enhance the trust invested in us by our stakeholders.

* Includes adjusted operating margin from the Scientific Solutions Business/Imaging Business.

Positioning of ESG in the New Company Strategy

Olympus sets out “patient safety and sustainability,” “innovation for growth,” and “productivity” as our three priorities under the new Company Strategy. We 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 realization of Our Purpose, namely of: “Making people’s lives healthier, safer and more fulfilling,” in order to become a leader in the healthcare industry as well as in ESG.
We have positioned the promotion of ESG as a key item among our priority initiatives, and will enhance the affinity and consistency between our ESG Strategy and Olympus’s company strategy, business strategy, and functional strategy to levels greater than previously seen.

Guiding Principles

• Company Strategy
• Value Creation Model

Materiality Topics at Olympus

Process for Analysis and Identification of Focus Areas and Materiality Topics

In conjunction with the formulation of the new Company Strategy, we reviewed and adjusted our ESG Strategy in FY2023. 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^*.
In the process of identifying these 25 Materiality Topics, mapping of these topics onto the two axes of “importance to stakeholders” and “impact on Olympus's business (importance to Olympus)” is carried out, with Olympus then assigning these to three levels of priority: Top Priority, High Priority, and Others.
KPIs have been set for those Materiality Topics that have been positioned as particularly important Top Priority topics, with progress towards their achievement being actively managed. Progress statuses and new initiatives will also be actively discussed at ESG Committee and Board of Directors meetings.

* Since identifying four materiality items in FY2020, we revised these to five materialities in FY2022 with the addition of “Carbon Neutral Society and Circular Economy.” In the revision of FY2023, Tthe existing six important ESG areas and five materiality items were realigned into Six Focus Areas.

Materiality Matrix

Six Focus Areas and 25 Materiality Topics

The Six Focus Areas and 25 Materiality Topics are integral to Olympus’s corporate and business activities, and we will actively contribute to the resolution of a wide range of social issues through our activities related to these areas.

ESG Strategy Structure

List of Respective Materiality Topics by Focus Area

We have established KPIs for each of the items positioned as Top Priorities, and are managing our progress toward achieving these.

Focus Area 2

Concepts of Focus Areas/Vision

As a company providing medical devices, Olympus’s foremost priority should be the safety of patients. We are endeavoring to ensure observance of anti-corruption and other compliance measures and our complete accordance with the laws and regulations of respective countries to ensure the quality and safety of our products.

Materiality Topics/Medium-term Goals and KPIs/Achievements

Materiality Topics	Medium-term Goals and KPIs	FY2024 Achievements
Top Priority Quality and safety in product, service and solution	Timely ESG disclosures according to SASB Standards*	Appropriate disclosure was done. Details shown in the following chart. Information Disclosure in Accordance with SASB Standards on Product Quality and Safety
High Priority Business ethics and compliance Privacy, Information and cyber security	-	-
Others Risk and crisis management, risk culture Ethical marketing practice Innovation to improve mftg process Tax transparency	-	-

* SASB Standards: Published by the Sustainability Accounting Standards Board (SASB; US) to encourage the standardization of non-financial information disclosure. Industry-specific disclosure standards have been formulated.

Information Disclosure in Accordance with SASB Standards on Product Quality and Safety

Code	Accounting Metric	Olympus Disclosure Information
SASB:HC-MS-250a.1	Number of recalls issued, total units recalled	Appropriately disclosed on the websites of regulatory authorities in respective countries. Example: US FDA: Medical Device Recalls (fda.gov)
SASB:HC-MS-250a.2	List of products listed in the FDA’s MedWatch Safety Alerts for Human Medical Products Database	Appropriately disclosed in accordance with US FDA requirements. MedWatch:The FDA Safety Information and Adverse Event Reporting Program | FDA
SASB:HC-MS-250a.3	Number of fatalities related to products as reported in the FDA Manufacturer and User Facility Device Experience	Appropriately disclosed in accordance with US FDA requirements. MAUDE - Manufacturer and User Facility Device Experience (fda.gov)
SASB:HC-MS-250a.4	Number of FDA enforcement actions taken in response to violations of current Good Manufacturing Practices (cGMP), by type	Appropriately disclosed on the following website. https://datadashboard.fda.gov/ora/cd/inspections.htm

Contributions to Society through Our Medical Business

This section presents examples of Olympus’s contributions to society through its medical business.

• Healthcare Access and Outcome

  This section gives an overview of Olympus's activities in the medical business, including technology development to enable early diagnosis and minimally invasive treatments using endoscopy, and support for the training of physicians.

• Elevating the standard of care

  This section presents Olympus's initiatives to elevate standards of healthcare, including educational support for healthcare professionals.

• For the Benefit of Patients

  This section presents initiatives to improve patient care pathways (prevention to recuperation).

• Facts & Figures

  This section presents various data illustrating the features and characteristics of Olympus.

• Global Healthcare Data

  This PDF compiles and makes publicly available healthcare data, including case numbers for cancers and other diseases.