Olympus (7733) 44th Annual J.P. Morgan Healthcare Conference summary

Market trends, vision, and growth opportunities

• Global endoscopy demand is rising at 5% annually, driven by aging populations, chronic diseases, and increased cancer prevalence, with procedures expected to grow from 155 million to potentially 600 million annually as access expands.

• Expansion opportunities exist in underserved geographies and adjacent disease areas, with potential to triple global procedures if utilization matches leading regions.

• Patients seek earlier detection, less invasive care, and same-visit diagnosis and treatment, while clinicians and administrators demand efficiency and reliability.

• Endoscopy-enabled care is positioned to extend and enhance quality of life, setting new standards for minimally invasive medicine.

• Olympus aims to shape the future of endoscopy-enabled care through an adaptive ecosystem integrating imaging, devices, digital solutions, AI, and robotics.

Strategic imperatives, positioning, and operational plans

• Three strategic pillars: innovation-driven growth, simplicity, and accountability, underpin the vision and operational execution.

• Holds the largest installed base of interoperable endoscopy systems, supporting scalable, integrated workflows.

• Simplicity is pursued through restructuring, operational efficiency, and a division-led model to streamline decision-making.

• Accountability is reinforced by a high-performance culture, patient-first mindset, and strengthened ESG commitments.

• Envisions an integrated ecosystem of cloud-connected hardware, software, and services to enable earlier diagnosis and minimally invasive therapies.

Financial aspirations, growth drivers, and capital allocation

• Targets 3–5% annual revenue growth, >10% EPS CAGR from FY2026, and ~100 bps operating margin expansion year-on-year.

• Growth driven by innovation, portfolio expansion, and focused investments, especially in China and emerging markets.

• Capital allocated to organic growth, disciplined M&A, increasing dividends, and flexible share buybacks.

• Olympus Innovation Ventures Fund increased by $150 million to accelerate early-stage innovation and partnerships.

• Free cash flow improvement is a key focus, with business process transformation and supply chain improvements.