Message from the Chairman and CEO

By fulfilling the “Sysmex Way,” we are working to realize a sustainable society.

Identifying Priority Issues (Materiality) with a View to Resolving the World’s Medical Issues

In line with our mission of “shaping the advancement of healthcare,” which is defined in the “Sysmex Way,” the corporate philosophy of the Sysmex Group, Sysmex works to contribute to the development of healthcare and the healthy lives of people.

February 2018 marked the 50th anniversary of our establishment. Since the time of its founding, Sysmex has been involved with medical testing, playing an important role in disease prevention, early detection, and determining courses of treatment. We have created new diagnostic value to enhance the quality of life (QOL) of patients and other people, and we have striven to establish testing technologies that help lighten their burden. In the field of in vitro diagnostics, we currently provide products, services, and support in more than 190 countries and regions throughout the world.

The global medical environment is undergoing significant changes. Advanced countries are characterized by aging populations and increasingly diverse healthcare needs, and emerging markets are marked by medical infrastructure developments and a rising quality of healthcare. Meanwhile, addressing three major infectious diseases (HIV/AIDS, tuberculosis and malaria) is a serious issue in developing countries. In September 2015, the United Nations adopted the Sustainable Development Goals (SDGs), which set 17 globally consistent targets. As a healthcare company, Sysmex aims to contribute toward achieving these goals by providing high-value testing and diagnostic technologies.

In May 2017, we identified our priority issues (materiality). In addition to the “resolution of medical issues through products and services” which is the contribution we make through our business, the priority issues include the “responsible provision of products and services,” “realization of an attractive workplace,” “environmental consideration” and “governance.” Through priority initiatives in these five areas, we aim to help resolve social issues and contribute toward the realization of a sustainable society.

Formulating Long-Term Management Goals for the Sysmex Group in Response to Increasingly Diverse Healthcare Needs

We expect the global healthcare market to continue growing as advanced countries endeavor to raise healthcare efficiency to hold down medical costs. Meanwhile, against a backdrop of economic development, demand is growing in emerging markets and developing countries to put healthcare infrastructures in place and increase the quality of healthcare. At the same time, artificial intelligence (AI), big data analytics, and other leading-edge technologies are being applied in the healthcare domain. We also see other opportunities for further growth, in such areas as personalized medicine—including genomic medicine that incorporates advances in molecular diagnostic technologies1—and regenerative medicine.

Sysmex views these changes in the healthcare environment and increasingly diverse healthcare needs as business opportunities. As such, we have formulated new long-term management goals for the period ending in fiscal 2025, with the aim of achieving sustainable growth of the Sysmex Group and reinforcing the management foundation to support this growth. We have also established our long-term vision as a “Unique & Advanced Healthcare Testing Company”, and our positioning based on this vision. We aim to achieve further growth by strengthening and expanding our conventional core business portfolio in the IVD field. In the primary care domain, involving diagnosis at locations near patients, we will create new services that take advantage of diagnostic techniques accumulated through IVD and IT. In addition, we will create new diagnostic technologies that contribute to personalized medicine through the fusion of our proprietary technologies and new technologies achieved through open innovation. We also aim to transform our business structure by monetizing businesses centered on the life science field. Furthermore, we will recruit and foster the human resources essential to supporting the future expansion of our business activities and achieving the Group’s strategic goals. At the same time, we will enhance environmental considerations and initiatives to reinforce our management foundation, including the areas of corporate governance and risk management.

In the area of personalized medicine, in fiscal 2017 we welcomed into the Sysmex Group a pioneer in genetic analysis technology, Oxford Gene Technology IP Limited of the United Kingdom, thereby fortifying our technology base. Meanwhile, Multiplex Gene Panel Testing to Advancing Personalized Medicine using the cancer-related gene panel2 testing system, which we jointly developed with the National Cancer Center, received advanced medical care approval. In these ways, we aim to use gene testing to augment the level of healthcare. Furthermore, we have joined the Malaria Consortium in a bid to eliminate malaria—one of the world’s three major infectious diseases—and are developing hematology instruments that will contribute to malaria testing. Through such endeavors, we are helping to put in place healthcare infrastructures and raise the level of healthcare in emerging markets and developing countries.

1 Technologies for identifying diseases by studying the proteins, DNA, RNA, and other molecules contained in tissues and body fluids.

2 A diagnostic reagent kit that is designated to analyze the mutation, proliferation and fusion of multiple genes having diagnostic significance for cancer.

Celebrating our 50th anniversary in 2018, Sysmex has formulated a new corporate message, “Lighting the way with diagnostics,” to promote the Company’s advance to the next stage. This new message embodies the idea of enhancing diagnostic value with innovative testing to bring greater trust and confidence to healthcare.

Through innovative testing and diagnostic technologies, we will continue taking on challenges as the future of healthcare unfolds, working to enhance corporate value and realize a sustainable society over the medium to long term. I would like to ask for your continued support and understanding of our endeavors.

July 2018

Hisashi Ietsugu, Chairman and CEO