Olympus Corp.

Overview Key strengths Key risks Solid in niche areas of the global medical device market through differentiated core endoscope products Substantial reliance on endoscope-related businesses, which account for about 80% of total profits Likely maintenance of a 70% share of the global gastrointestinal endoscope market thanks in part to close ties with health care professionals Product lineup in mainstay therapeutic solutions business continuing to lag those of major overseas peers Continued expansion of the endoscope market amid a global push toward early diagnosis and minimally invasive therapies Somewhat weaker financial ratios than those of rated issuers in other industries with the same minimal financial risk profile Likelihood of debt to EBITDA remaining below 1.0x from fiscal 2022 onward To concentrate

...Olympus' profitability is likely to improve substantially in the coming six to 12 months. To concentrate resources in the medical device business, it has sold less competitive businesses that face more severe competition. It divested its imaging business in January 2021 and plans to complete the sale of its scientific solutions business in January 2023. The medical device business has for the first time in eight years launched a new endoscope, for which sales are strong. The endoscopic solutions division of the business holds a 70% share of the global market for gastrointestinal endoscopes. The new model will soon debut in the U.S., the world's largest market, likely generating strong EBITDA. In the therapeutic solutions division, we expect the company to achieve steady growth in EBITDA and market share by continuously launching new products in its areas of focus, although its product lineup compares unfavorably with those of major global competitors. Olympus' profitability in terms of...

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