FY2020-2022 Medium-Term Management Plan(Version Updated Due to the COVID-19 Pandemic:Adjusted Upward)

FY 2020-2022Medium-Term Management Plan

(Version Updated Due to the COVID-19 Pandemic: Adjusted Upward)

May 12, 2021

Teruhisa Ueda

President & CEO

Shimadzu Corporation

Contents

I. Review of the Previous Medium-Term
Management Plan	･･･････ p. 4-p. 8

• Results from Previous Medium-Term Management Plan and FY 2019 Results
• FY 2019 Net Sales by Business Segment
• Collaborations with Research Institutions
• Investment in R&D and Capital Equipment
• M&A

II. Overview of the New Medium-Term

Management Plan

･･･････ p. 10-p. 16

• Basic Concept

"Become a Company That Solves Challenges in Society in Collaboration with Partners All Around the World" Accelerate Creating Systems for Solving Challenges in Society

• Key Points of the New Medium-Term Management Plan
• Top Priority Measure: Promoting Infectious Disease Countermeasure Projects
• Four Growth Strategies
• Investment in Capital Equipment and R&D
• FY 2022 Performance Targets
• Capitalization Policy

Contents of Presentation on May 20, 2020

III. Strategic Measures in the New Medium-Term
Management Plan	･･･････ p. 18-p. 25

• Strengthening the Foundation for Growth: Reforming Business Portfolios
• Sales Plan by Business Segment
• Strengthening Key Businesses for Analytical & Measuring Instruments Segment
• 1. Liquid Chromatographs (LC)
  2. Mass Spectrometers (MS)
• Strengthening Businesses outside Japan
• Strengthening Businesses with Recurring Revenues
• Expanding Businesses in Growth Fields: Startup Incubation Center

FY 2020-2022Medium-Term Management Plan	2

Revised on May 12, 2021

Contents for Today -Update Due to the COVID-19 Pandemic-

II. Overview of the New Medium-Term

Management Plan

･･･････ p. 4-p. 15

• Changes in Business Environment Due to the COVID-19 Pandemic and New Key Topics
• Key Changes in the Medium-Term Management Plan
• Basic Concept
• Key Points of the New Medium-Term Management Plan
• Important Emergency Challenges: Infectious Disease Countermeasure Projects
• Important Emergency Challenges: Infectious Disease Countermeasure Projects Phase II
• Four Growth Strategies
• Investment in Capital Equipment and R&D
• Performance Targets: FY 2022 Performance Targets
• Capitalization Policy

III. Strategic Measures in the New Medium-Term

Management Plan

･･･････ p. 16-p. 25

• Strengthening the Foundation for Growth: Reforming Business Portfolios
• Sales Target by Business Segment
• Strengthening Key Businesses for Analytical & Measuring Instruments Segment
• 1. Liquid Chromatographs (LC)
  2. Mass Spectrometers (MS)
• Strengthening Businesses outside Japan
• Implementing DX Measures
• Strengthening Businesses with Recurring Revenues
• Expanding Businesses in Growth Fields: Startup Incubation Center
• Implementing Sustainability Management

Reference

1. Review of the Previous Medium-Term Management Plan
   ･･･････ p. 27-p. 32

• Results from Previous Medium-Term Management Plan and FY 2019 Results
• FY 2019 Net Sales by Business Segment
• Collaborations with Research Institutions
• Investment in R&D and Capital Equipment
• M&A

FY 2020-2022Medium-Term Management Plan	3

Revised on May 12, 2021

II. Overview of the New Medium-Term Management Plan

II. Overview of the New Medium-Term Management Plan

･･･････ p. 4-p. 15

• Changes in Business Environment Due to the COVID-19 Pandemic and New Key Topics
• Key Changes in the Medium-Term Management Plan
• Basic Concept
• Key Points of the New Medium-Term Management Plan
• Important Emergency Challenges: Infectious Disease Countermeasure Projects
• Important Emergency Challenges: Infectious Disease Countermeasure Projects Phase II
• Four Growth Strategies
• Investment in Capital Equipment and R&D
• Performance Targets: FY 2022 Performance Targets
• Capitalization Policy

FY 2020-2022Medium-Term Management Plan	4

Newly Added on May 12, 2021

Changes in Business Environment Due to the COVID-19

Pandemic and New Key Topics

Due to the major changes in our business environment during the past year caused by the pandemic, new measures are essential for achieving sustained growth.

Changes in Business Environment Due to Pandemic

1. Prolonged COVID-19 pandemic
2. • New infections of variant forms are increasing (in India, etc.).
   • Vaccination-basedpreventive measures are progressing.
   • Investment in research of infectious disease countermeasures
3. Various risks increased due to nationalism
4. • Increased risk of technology leaks
   • Intentions to consolidate supply chains domestically
   • Stricter export controls
5. Acceleration of measures for achieving carbon neutrality
6. • Measures by various countries to achieve carbon neutrality are accelerating.
   • Measures associated with transition to EV are accelerating.
   • Hydrogen use, renewable energies, and other new measures are accelerating.
7. Rapid advancement in digital technologies and changes in work practices
8. • Rapid advancement in remote/online technologies
   • Working practice changes using the latest technologies, such as teleworking

New Key Topics and Measures at Shimadzu

1. Implementing phase II of infectious disease countermeasures
2. • Offer new purpose-specific testing methods.
   • Manage testing data via network and link to other software.
   • Expand joint R&D for infectious disease countermeasures globally.
3. Managing new risks
4. • Strengthen system security.
   • Reexamine global manufacturing supply chains.
   • Strengthen export control capabilities.
5. Strengthening sustainability management
6. • Strengthen SDGs and ESG measures.
   • Implement measures for achieving carbon neutrality.
   • Offer new solutions for measuring hydrogen, measuring battery- related quantities, etc.
7. Rapid advancement in digital technologies and changes in work practices
8. • Strengthen remote operability and active use of AI in products.
   • Implement DX measures for offering customer solutions and reforming businesses.

FY 2020-2022Medium-Term Management Plan	5