Risk Management

Amid rising uncertainty, the Sysmex Group will continue to gather information globally and in a timely manner on changes in market conditions across countries and regions, and to provide high-value-added products and services to our customers. We are also driving the standardization and efficiency of testing by providing solutions that help medical institutions improve profitability through the use of robotics, AI, and other technologies. Furthermore, in emerging markets where economic and population growth is expected to spur investment in medical infrastructure, we are contributing to Universal Health Coverage^* by developing and introducing products that meet a wide variety of market needs and improving access to and quality of healthcare. In particular, within the Global South—a high-growth market—we will deploy strategic products in countries and regions such as India, Brazil, the Middle East, and Africa to sustain our growth. The entire Group will continue working to create further added value.

The Group hedges its foreign currency-denominated receivables and payables, including foreign currency-denominated trade receivables, loans to affiliated companies, and borrowings, mainly by entering into forward exchange rate contracts.
We are also taking measures to mitigate the impact of currency fluctuations by globally diversifying our production sites, particularly for diagnostic reagents.

Guided by our Group’s corporate philosophy, the “Sysmex Way,” and our “Shared Values” derived from it, the Sysmex Group defines compliance as “the conduct of open and aboveboard business activities based on observance of laws and regulations and high ethical standards. Recognizing compliance violations as one of the most serious risks that can undermine social credibility, we have established a Compliance Committee under our Group-wide risk management system. This committee serves as the central body to promote and strengthen compliance initiatives.
We have also formulated a Global Compliance Code that outlines particularly important rules and behavioral guidelines to be followed by all officers and employees throughout the Group.
In addition, the Group has established a global system that enables all officers and employees to seek consultation or report concerns related to compliance—including bribery and human rights violations. This is extended to our business partners via the “Partner Hotline,” which accepts reports on any confirmed or suspected compliance violations involving the Group. Furthermore, education and awareness-raising activities are positioned as the foundation of our compliance promotion efforts, and we are committed to providing ongoing training across the entire Group.
In connection with an investigation by the Japan Fair Trade Commission (JFTC) into a suspected violation of the Antimonopoly Act, the commitment plan submitted by Sysmex pursuant to the Act was approved in February 2025. We are currently implementing this commitment plan steadily. Although this approval does not constitute a finding that we violated the Antimonopoly Act, we take seriously the fact that we were investigated by the JFTC on suspicion of a violation of the Act. Moving beyond the mere execution of the commitment plan, the Group is dedicated to further strengthening its compliance system, including strict adherence to the Antimonopoly Act.

The Sysmex Group has announced a global compliance code that outlines its commitment to respecting human rights and eliminating discrimination. Based on the spirit of the UN Guiding Principles on Business and Human Rights and the ILO Core Labour Standards, we are committed to creating a corporate management and work environment that respects human rights. In addition, our human rights policy stipulates the implementation of human rights due diligence. We are promoting efforts to identify human rights impacts and to prevent and mitigate any negative impacts on human rights, not only within the Group but also across external partners involved in the supply chain. We have established preventive frameworks to ensure that our business activities do not contribute to or become complicit in human rights violations, including the prohibition of forced labor and child labor, and the elimination of discrimination based on gender, disability, race, beliefs, and other attributes.
In addition to internal reporting channels both in Japan and overseas, we accept human rights-related consultations and reports from external stakeholders—including those in the supply chain—via the “Engagement and Remedy Platform” operated by JaCER, a third-party organization.
Information received through these channels is handled appropriately, and measures are in place to protect whistleblowers from any disadvantage. We have also established systems to implement necessary corrective and remedial actions. Furthermore, we provide training to prevent harassment and disseminate accurate labor-related information to prevent human rights infringements before they occur.

Guided by our Group’s corporate philosophy, the “Sysmex Way,” and our “Shared Values” derived from it, the Sysmex Group is committed to creating innovation through various technological developments and providing products and services that help address social challenges. While continuing to invest aggressively in the development of new technologies, we promote open innovation that effectively creates new clinical value by integrating the Groupʼs technologies with those of universities, research institutions, and other companies. We are also working to enhance productivity and efficiency through the use of data accumulated across the Group and the introduction of AI and digital technologies.
Furthermore, we have established R&D sites around the world to facilitate these activities and are working to contribute not only to the conventional field of in vitro diagnostics but also to personalized medicine and preventive medicine.
As part of these efforts, we are focused on enhancing our presence and market penetration in Alzheimer’s disease testing. While Alzheimer’s disease treatments (anti-amyloid β antibody drugs) are expected to slow the progression of dementia, adverse reactions may occur in some patients. Sysmex became the first company in Japan to obtain manufacturing and marketing approval for an assay kit assessing the risk of these adverse reactions. Furthermore, we have commenced a global sales collaboration with Fujirebio Holdings, Inc., aiming to secure market dominance through early market entry while striving for further growth in immunochemistry centering on Alzheimer’s disease testing.
In response to increasingly sophisticated medical environments in recent years, we are advancing further automation of laboratory processes and developing AI-powered test result analysis systems to improve productivity. These efforts will also support laboratory automation as a means of addressing the growing shortage of laboratory technologists. Moving forward, we will continue to advance the digital transformation of healthcare through the creation of new technologies and innovations. By implementing a digital strategy centered on testing data and AI to solve urgent challenges faced by medical frontlines and society as a whole, we will contribute to extending healthy life expectancies and pursue sustainable growth.

The Sysmex Group has established an Environmental Management Committee as an organization to promote environmental management. The Group is committed to the realization of a circular-oriented society and aims to provide sustainable value to the environment and society by both solving social issues and achieving business growth through its products and services.
We have formulated the Sysmex Eco-Vision 2033 and are working to reduce environmental impact across our entire value chain, including production, development, sales, and service. This is achieved through environmentally conscious products and services designed with careful consideration for CO₂ emissions, water usage, and biodiversity. Key initiatives include adopting horizontally recycled containers,^*1 promoting the use of concentrated reagents, introducing dry-ice-free transportation, and developing products using non-animal-derived raw materials. Our horizontally recycled containers were the first in the industry to be certified under the Act on Promotion of Resource Circulation for Plastics.
We also support the recommendations of the TNFD^*2 and became the first in the industry to register as a TNFD Adopter. We have also obtained SBTi^*3 certification and were selected for the CDP A List in the 2025 assessment, the highest rating awarded by CDP, the world’s only independent environmental disclosure system. With growing recognition of the links between climate change and human health in the healthcare industry, and increasing expectations from medical institutions in Japan and overseas for environmental compliance, we are accelerating our environmental initiatives. By driving green innovation, we aim to contribute to nature-positive outcomes that restore and regenerate the natural environment, as well as to the realization of a sustainable society.

We strive to remain abreast of the latest regulatory information by participating in industry associations in various countries. Concurrently, utilizing the Sysmex Groupʼs global network, we work to obtain and maintain regulatory approvals in a timely and accurate manner to further strengthen our competitive advantage. We are promoting the development of new diagnostic technologies that contribute to personalized healthcare, based on an accurate understanding of increasingly diverse and sophisticated needs amid changing environments in various countries and regions. Leveraging our comprehensive strengths across IVD instruments, diagnostic reagents, IT, and service and support, we will work to address healthcare challenges such as improving medical workflows, enabling earlier disease detection, and expanding access to healthcare in emerging markets. Going forward, we will continue to closely monitor regulatory reforms and local requirements in each country to ensure the stable delivery of our products to customers worldwide.

The Sysmex Group has established a basic policy on intellectual property activities under which we respect the intellectual property rights of both our company and third parties. We actively seek to secure rights for valuable intellectual property created through all our business activities and respond appropriately to third-party intellectual property rights, with the aim of establishing a globally competitive advantage. Through internal training, employees are made aware of the importance of respecting the intellectual property rights of the Sysmex Group and third parties in the conduct of business. Furthermore, we have established an award system to motivate employees to acquire intellectual property rights.
As part of our efforts to address infringements of the Sysmex Group’s intellectual property rights, we are securing intellectual property rights globally and taking firm action to eliminate counterfeit products, thereby ensuring that customers can use our products with confidence. To protect key brands, we are actively securing trademark rights worldwide—including in emerging markets and developing countries. In particular, we have filed trademark applications for our corporate logo in 195 countries and regions. As a result, approximately 81% of our total intellectual property rights are now held outside Japan.

The Sysmex Group is committed to the stable supply of products and services on a global basis, in line with its social mission of supporting medical care by providing accurate test results and ensuring confidence through the delivery of high-quality products around the world. To prepare for supply chain disruptions or stagnation caused by natural disasters, geopolitical factors, or other events, we proactively secure inventories of products and raw materials and promote multi-sourcing for raw materials during normal operations. At the same time, we enhance preventive and recovery measures against large-scale disasters such as earthquakes, windstorms, and floods at our factories and warehouses, while securing alternative transportation methods. For reagents, which account for 61.7% of the Sysmex Groupʼs sales (fiscal year ended March 31, 2026), we secure inventory levels that take into consideration the period required to ensure business continuity. In addition, we produce reagents at multiple locations. In particular, for reagents in our mainstay hematology field, we have established a mutual supply network among major bases to ensure a stable supply.
In addition, the Sysmex Group as a whole has a business continuity plan (BCP) in place, and through daily training we prepare to restore operations quickly in the event of an emergency so that medical institutions can continue their testing operations. At the new factory of Sysmex RA Co., Ltd., completed this fiscal year, we have expanded the production area to increase capacity and leveraged the automation of in-plant logistics to stock additional raw material inventories. This has reinforced its BCP functionality, enabling swift backup support even if emergencies arise at other Group factories.
Furthermore, we have established procurement policies and guidelines with the aim of building a company that grows together with its business partners. We will continue to strengthen our efforts to ensure that customers are able to use our products with confidence.

The Sysmex Group is committed to group-wide management to maintain quality in compliance with the laws and regulations of each country and international standards. We have established a quality policy to monitor and improve the quality and safety of our products and services. In addition, all of our production bases have acquired ISO 9001 or ISO 13485 certification, the international standards for quality management systems. Furthermore, we collect and analyze information on product reliability and safety from a wide range of domestic and overseas sources, and utilize this information to improve product quality.
We have also established the QARA Committee to promote quality assurance and regulatory compliance on a global scale. As quality-related laws and regulations become increasingly stringent, demanding swifter and more appropriate global quality assurance and regulatory responses, we will continue to strengthen our framework. Through the high-quality products and services of the Sysmex Group, we remain committed to improving the quality of healthcare worldwide and delivering peace of mind to our customers.

The Sysmex Group is promoting cybersecurity measures for its products and services, led by the Product Cybersecurity Committee, in order to reliably ensure confidence among customers and patients. In line with these efforts, we have established a Product Security Policy and set up a PSIRT^*1 to design and manufacture products in accordance with the security policy and to manage after-sales vulnerabilities in cooperation with product security managers in each region.
Furthermore, we recognize that protecting the information assets of our customers and business partners is a testament to trust and quality. To that end, we have established an Information Security Policy and, under the leadership of the Information Security Committee, are working to maintain and enhance the confidentiality, integrity, and availability of information assets. To minimize the operational impact of information system or network line failures, computer viruses, or external intrusions into information systems, we are working to tighten information management. Our security measures include introducing mechanisms to detect unauthorized communications and isolate malware, conducting 24-hour monitoring, establishing a CSIRT,^*2 and joining external organizations to quickly obtain information in case of emergencies or major incidents, alongside the development of business continuity systems and training programs. In addition, for critical systems, including our global core system, we ensure stable operations and business continuity through identity and access control, change management, monitoring, and backups, and strive to enhance productivity and efficiency while strengthening information security.
In addition, we are promoting efforts to inform employees of the rules for the use of AI technologies in general, taking security into consideration, and to accelerate innovation through proactive use of AI technologies, thereby enhancing the efficiency and productivity of our corporate activities.

The Sysmex Group aims to maximize the effectiveness of its investments by strengthening its systems for reviewing and making decisions on investments and monitoring PMI.^* Investment decisions are made after thorough advance investigation and deliberation at management meetings as to the purpose, impacts, and potential risks of such investments. Even after making a decision, we believe it is important to respond to changes and make course corrections flexibly. We are working to strengthen the investment management process through regular monitoring.
As an example of these efforts, we are expanding our product portfolio and driving global expansion by acquiring the biochemical testing business, which is the medical equipment business of JEOL Ltd.
In addition, by leveraging our ongoing investments in digitalization, we will streamline internal operations while promoting healthcare digital transformation (DX) through the use of test data and AI.
We will continue to accelerate the growth of the Sysmex Group by making appropriate decisions, actively taking risks on investments necessary for business growth, and continuing to provide high-value-added products and services by expanding our business and acquiring new technologies.

The Sysmex Group regards human resources as a critical management resource for sustainable growth. Our Group corporate philosophy, the “Sysmex Way,” promises employees that Sysmex “ensures anshin by honoring a diversity of employees, respecting their personalities, and providing a workplace where they can fulfill their potential. We value independence and a challenging spirit, provide employees with opportunities for self-fulfillment, growth, and reward for their accomplishments.” Guided by this philosophy, we promote human resource development and create an environment where our diverse talent can thrive.
To enable employees to take ownership of their career development, we provide training programs tailored to each career stage and have implemented a job-based human resource system across the Group. This framework ensures that even after experiencing major life events, employees can be appointed to positions based on their abilities and potential. In addition, we have adopted a hybrid work style that allows all employees to choose their work location and hours according to their duties and lifestyle. We are also working to develop attractive compensation systems, such as an employee stock ownership plan.
Furthermore, we are the first manufacturing company in Asia to acquire certification under ISO 30414, the international guideline for human capital reporting. We will continue to strive for highly transparent human capital reporting while enriching our human resource system to support the Group’s sustainable growth in terms of both talent recruitment and retention, ultimately aiming to maximize our human capital.