C O R P O R A T EP R O F I L E

Shimadzu (Hong Kong) Ltd.Shimadzu (China) Co., Ltd.

Overview of Shimadzu China

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Shimadzu (Hong Kong) Ltd.Shimadzu (China) Co., Ltd.

1980

0.472 billion dollars(As of March 31, 2017)

1,126 (SHK and SSL)(As of March 31, 2017)

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Established:

Consolidated Sales:

Total Number of Employees:

Consolidated Subsidiaries:

China in Overall Shimadzu Group Operations

We are expanding our global organization to meet the needs of each region.

Percent of Net Sales by Region(Year ending March 2017)

Japan51.1 %

Americas12.4 %

Europe7.3 %

China16.4 %

Middle East, Oceania & Africa 2.9 %Other Asian

Countries9.6 %

DubaiSingapore Australia

ShanghaiSanjo Worksat Kyoto Head Office

Duisburg, Germany

California, U.S.Maryland, U.S. Sao Paulo, Brazil

South America

ChinaJapanEurope

Middle East & AfricaAsia & Oceania

North America

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Shimadzu China 2017 Net Sales by Division (Results for Apr. to Dec.)

Model 2016 Results 2017 Results Year-on-YearAnalytical & Measuring

Instruments 285 334 117 %

LC+GC+MS 201 223 111 %Other 84 112 133 %

Medical Systems 28 42 153 %

Industrial Machinery 39 42 109 %

Total 352 418 119 %

Achieved 19 % growth (YoY) overall, with particular expansion in Analytical & Measuring Instruments and Medical Systems segments.Analytical & Measuring Instruments segment also achieved high growth in other categories (environmental, large projects, testing machines, and NDI).

(MUSD)

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Analytical & Measuring Instruments Net Sales by SectorPublic sector demand: Served as driver of sales for several years, but growth has slowed due to

convergence in government projects and privatization of some institutions (from Entry-Exit Inspection and Quarantine Bureau to contract analysis). Startup of 13th 5-year plan is expected to increase demand.

Academia: Over 20 % growth achieved for two consecutive years, due to the government's "Double First-Class University Plan."

Private sector demand: Demand is strong in pharmaceutical (regulatory compliance) and contract analysis (privatization) fields. Continued growth is expected, due to recovery in chemical engineering and petrochemical markets and other factors.

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民需

官需

大学

2015 2016 2017

15 % 15 % 16 %

34 %31 %

27 %

51 %53 %

58 %

Private sector demandPublic sector demandAcademia

Analytical & Measuring Instruments Net Sales by Segment

FY 2017 Percent of Main Industries

Growth slowed in FY 2017 due to fewer government projects in pharmaceutical, food, and healthcare fields, but growth continues in the pharmaceuticals market, which accounts for the largest portion. Growth is high in chemistry, electrical, and machinery fields, due to strengthened Shimadzu capabilities within China and continued recovery of market activity. Government and academia sales are in a transient period of government projects, but sales to academia are strong, mainly for the Double First-Class University Plan. Contract analysis sales are growing significantly, not only in food and environmental testing fields, as before, but also in the healthcare field.

Industry17/16

Sales Ratio17/15

Sales Ratio

Pharmaceuticals, Foods, and Healthcare

102 % 121 %

Chemical, Electrical, and Machinery

138 % 133 %

Government and Academia 106 % 122 %

Contract Analysis 146 % 178 %Other 138 % 135 %Overall 117 % 130 %

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35%

23%

20%

12%

10%医薬・ヘルスケア・食品

化学・電気・機械

官公庁・大学

受託分析

その他

Pharmaceuticals, healthcare, and foodsChemical, electrical, and machineryGovernment and academiaContract analysis

Other

China vs. Japan—Net Sales by Division The Analytical & Measuring Instruments sales ratio versus Japan decreased from 1:1.7 to 1:1.5,

where China headed toward becoming the number one region in the world. The Medical Systems sales ratio versus Japan decreased from 1:5.7 to 1:5.4, but the gap is still

large. Measures need to be implemented strategically. The Industrial Machinery sales moved significantly closer to Japan, with the sales ratio versus Japan

decreasing from 1:3.3 to 1:1.6, due to major expansion of TMP and glass winder sales. Measures to maintain the strong expansion are expected to be deployed.

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152期 153期 154期 155期

中国 年間

日本 年間

中国 上期

日本 上期

152期 153期 154期 155期

中国 年間

日本 年間

中国 上期

日本 上期

Big difference in sales compared to Japan

2017201620152014

Analytical & Measuring InstrumentsSales in Japan and China

Sales catching up to Japan

2017201620152014

China—Full YearJapan—Full YearChina—First HalfJapan—First Half

152期 153期 154期 155期

中国 年間

日本 年間

中国 上期

日本 上期

Sales moving significantly closer to Japan

2017201620152014

China—Full YearJapan—Full YearChina—First HalfJapan—First Half

Medical Systems Sales in Japan and China

China—Full Year

Japan—Full Year

China—First Half

Japan—First Half

Industrial MachinerySales in Japan and China

China vs. Japan—Net Sales by Model (Analytical & Measuring Instruments) In the first half, LC, MS, GC, and environmental results exceeded Japan. In addition to environmental and spectrometry products, where China continues to achieve the

highest regional sales in the world, China has also surpassed sales in Japan for the first time in two years for LC and GC products and for the first time ever for MS products.

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152期 153期 154期 155期

Net Sales—LC

中国 年間

日本 年間

中国 上期

日本 上期

152期 153期 154期 155期

Net Sales—MS

中国 年間

日本 年間

中国 上期

日本 上期

152期 153期 154期 155期

Net Sales—Environmental

中国 年間

日本 年間

中国 上期

日本 上期

152期 153期 154期 155期

Net Sales—GC

中国 年間

日本 年間

中国 上期

日本 上期

Exceeded Japan for the first time in two years.

Maintained highest sales in the world.Business expected to expand further.

Achieved higher sales than Japan for the first time this term.

Exceeded Japan for the first time in two years.

2017201620152014

2017201620152014

2017201620152014

2017201620152014

China—Full Year

Japan—Full Year

China—First Half

Japan—First Half

China—Full Year

Japan—Full Year

China—First Half

Japan—First Half

China—Full Year

Japan—Full Year

China—First Half

Japan—First Half

China—Full Year

Japan—Full Year

China—First Half

Japan—First Half

Large Network in China

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3 R&D centers

4 Manufacturing locations

5 Analysis centers

14+ Sales and service locations

90+ Joint research laboratories

Group Companies and Branches in ChinaConsolidated Sales: Approx. 0.6 billion dollars

Total Number of Employees: Almost 1,800(Including 55 Expats)• March 2018 estimate

Sales/Service Subsidiaries(1) Shimadzu (Hong Kong) Ltd. established in 1997(2) Shimadzu (China) Co., Ltd. established in 1998(3) Shimadzu (Guangzhou) Analysis & Technology

Services Co., Ltd. established in 2006(4) Shimadzu Research Laboratory (Shanghai) Co., Ltd.

established in 2007(5) Shimadzu-GL Sciences (Shanghai) Laboratory

Supplies Co., Ltd. established in 2007

Manufacturing Subsidiaries(6) Beijing Shimadzu Medical

Equipment Co., Ltd.Established in 1992Production of medical X-ray diagnostic imaging systems

(7) Tianjin-Shimadzu Hydraulic Equipment Co., Ltd.Established in 1994Manufacturing and sales of hydraulic gear pumps

(8) Shimadzu (Suzhou) Instruments Manufacturing, Co., Ltd.Established in 1998Production of analytical instruments and environmental measurement instruments

(9) Ningbo Shimadzu Vacuum Technology Development Co., Ltd.Established in 2005Manufacturing and sales of vacuum furnaces

Beijing Branch established in 1980*Beijing Analysis Center established in 1994*

Shenyang Branch established in 1985*Shenyang Analysis Center established in 2008*

Nanjing Branch established in 2000*

Henan Branch established in 2012*

Shanghai Branch established in 1982*Shimadzu Global Application Development Center established in 2008*Shimadzu China R&D Division established in 2011*

Suzhou Office established in 2003*

Wuhan Branch established in 2008*

Shenzhen Branch established in 2003*

Guangzhou Branch established in 1984*

Urumqi Branch established in 2001*

Xian Branch established in 2001*

Sichuan Branch established in 1994*Chengdu Analysis Center established in 2012*

Kunming Branch established in 2002*

Chongqing Branch established in 2001*

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R&D Centers

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January 2011

Analytical instruments for China markets

Established:

R&D Field:

Shimadzu China R&D Division

March 2013

Advanced mass spectrometry technologies

Established:

R&D Field:

Shimadzu Research Laboratory (Shanghai) Co., Ltd.

Application Research and Development Center

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October 2015

MS applications for China and world-wide marketsClinical, food safety, environmental, pharmaceuticals, chemicals, etc.

Established:

R&D Fields:

Shimadzu China Mass Spectrometry Center (Beijing)

Manufacturing Locations

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SSM (Suzhou)

BSME (Beijing)

NSC (Ningbo)

TSH (Tianjin)

Analytical Instruments Industrial Machinery

Medical Systems Fluidics Devices

Analysis Center

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Shanghai, Beijing, Guangzhou, Shenyang, and Chengdu

Various contract analysis and analysis on requestLC, GC, LCMS, GCMS,ICPMS, AA, UV, FTIR, etc.

Analytical Fields:

Xian Analysis Center to be established in May 2018

Offering Customers Total Solutions

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Shimadzu (Guangzhou) Analysis & Technology Services Co., Ltd. (SAT)

Analysis service for automotive, consumer electronics, toys, fibers, and food industries

Company:

Business Fields:

Contract Analysis Service

Shimadzu-GL Sciences (Shanghai) Laboratory Supplies Co., Ltd. (SGL)

Sale of consumables for analytical instruments(For Shimadzu and non-Shimadzu brands)

Company:

Business Fields:

Consumables Sales

Large Network of Joint Laboratories

Breakdown by Industry

PharmaceuticalFood

SafetyEnvironmentalAcademic and Research Institutions

Public Safety and PoliceContract Analysis

MaterialsEntry-Exit Inspection and Quarantine Bureau

2017 Shimadzu Joint Laboratories

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０

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History of Business in China

Shimadzu Corporation Business Development in China(1) From 1956: Transactions started and(2) From 1978: Chinese economic reforms started

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Year Events in China Shimadzu China1949 People's Republic of China established.1953 First 5-year plan started.

1956 Guangzhou/China Export Product Exhibition held(predecessor of Canton Fair).

Participation in First Beijing-Shanghai Japan Trade FairFirst Shimadzu delegation to visit China (ToyozoNishikawa and others)

1958Nagasaki National Flag Incident and all China-Japan trade canceled.Chinese Great Leap Forward campaign started.

1960 China-Japan trade resumes. (Friendly trade starts.)

1966 Third 5-year plan started.Cultural Revolution starts.

1968 Cultural Revolution continues and Deng Xiaoping exiled. First Annual Cooperation Agreement signed.

1972 Japan-China Joint Communiqué signed and Japan-China relations normalized.

1973 Deng Xiaoping reinstated in Beijing. Participation in Canton Fair

1976 Premier Zhou Enlai dies (January 8). Chairman Mao Zedong dies (September 9). China Automation Equipment Exhibition

1978China-Japan Peace and Friendship Agreement signed.Path for Chinese economic reforms and Deputy Premier Deng Xiaoping visits Japan.

1979 Prime Minister Ohira visits China and officially offers Japanese-government-backed yen loan.

Analytical instrument service station established in Beijing.

1980 Special economic zones designated in Shenzhen, Zhuhai, Shantou, and Xiamen. Beijing Branch established.

1982 One-child policy started. Shanghai Branch established.

1984 Prime minister Nakasone visits China and 21st Century Committee for Japan-China Friendship inaugurated. Guangzhou Branch established.

1985 Import/export tariff ordinance implemented. Shenyang Branch established.

President Ryoji Uenishi meets with Premier Zhou Enlai in 1973

Participation in the first Beijing-Shanghai Japan Trade Fair in 1956 gave Shimadzu a lead over competitors in starting trade with China.Due to Chinese economic reforms in 1978, a service location was established in Beijing with the help of the China National Instruments Import & Export (Group) Corporation in 1979. Representative offices were established in Beijing, Shanghai, Guangzhou, Shenyang, and Chengdu to deploy activities closer to markets.Later, an infrastructure of service centers and analysis centers were established to cover all of China.

Shimadzu Corporation Business Development in China(3) From 1990: Period of Introducing Market Economy

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Year Events in China Shimadzu China

1992 Deng Xiaoping gives "South Tour Speeches."

Beijing Shimadzu Medical Equipment Co., Ltd. established.

1993 Jiang Zemin appointed as President.

1994 General reforms implemented for external trade system.

Tianjin-Shimadzu Hydraulic Equipment Co., Ltd. established.Beijing Analysis Center established.Sichuan Branch established.

1997 Hong Kong returned to China. Shimadzu (Hong Kong) Ltd. established.

1998 Jiang Zemin visits Japan (first time since the country was founded).

Shimadzu (China) Co., Ltd. established.Shimadzu (Suzhou) Instruments Manufacturing, Co., Ltd. established.

1999 Macau returned to China.

2000 Jiang Zemin submits "Three Represents" theory. Nanjing Branch established.

In the 1990s, China implemented a full-scale introduction of a market economy and promoted rapid liberalization of trade. During that decade, China attracted significant attention as the "factory to the world."

Medical Device Plant (BSME)

1992

Hydraulic Equipment Plant (TSH)

1994

Hong Kong Office (SHK)1997

Analytical Instruments Plant (SSM)

1998

Trade Office (SSL)1999

Shimadzu established joint venture manufacturing subsidiaries for medical devices in Beijing and gear pumps in Tianjin.Shimadzu also steadily established a business base that integrated manufacturing and sales operations in China, such as by establishing a wholly-owned analytical instrument manufacturing subsidiary in Suzhou.

Shimadzu Corporation Business Development in China(4) From 2001: Opened markets by joining WTO

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Joining the WTO in 2001 marks an era of opening markets, after which China achieved dramatic economic growth. During that period, markets are hit by waves of global competition and China began transitioning from a "factory to the world" to a "market of the world."

Year Events in China Shimadzu China

2001 China joins WTO.Chongqing Branch established. Xian Branch established. Urumqi Branch established.

2002 Policy to comprehensively build a moderately prosperous society. Kunming Branch established.

2003 Hu Jintao appointed as President. SARS outbreak occurs.

Shenzhen Branch established. Suzhou Office established.

2004 Goals for a harmonious society submitted.

2005 Ningbo Shimadzu Vacuum Technology Development Co., Ltd. established.

2006 Eight Honors and Eight Shames submitted.

Shimadzu (Guangzhou) Analysis & Technology Services Co., Ltd. established.

2007 Scientific Outlook on Development submitted.

Shimadzu Research Laboratory (Shanghai) Co., Ltd. established.Shimadzu-GL Sciences (Shanghai) Laboratory Supplies Co., Ltd. established.

2008 Sichuan earthquake occurs. Beijing Olympics

Wuhan Branch established. Shenyang Analysis Center established. G-COE established.

Due to the total support capabilities and R&D capabilities required for responding to such market changes, such as application support capabilities and laboratory product/service package offerings, Shimadzu decided to strengthen comprehensive customer support functions and start building R&D locations in China.

Contract Analysis Subsidiary (SAT)

2006

Basic Research Laboratory (SRLS)

2007

Consumable Sales Subsidiary (SGL)

2007

Application Development Center

(G-COE)2008

Shimadzu Corporation Business Development in China(5) From 2010: Becoming the World's Second Largest Economy

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In 2010, China's GDP surpassed Japan's to become the second largest economy in the world. Though China continued to achieve over 6 % growth, various problems were also revealed, such as environmental problems, overproduction, and zombie companies. Meanwhile, China continues to increase their presence in the global economy with measures such as the One Belt and One Road Initiative and Asian Infrastructure Investment Bank (AIIB). Within China, they are developing a new service-based economy and aim to become the world's number one IT country. Year Events in China Shimadzu China

2010GDP surpasses Japan to become the world's second largest. Expo 2010 Shanghai China

2011 Environmental protection philosophy "Lucid waters and lush mountains are invaluable assets" submitted.

Shimadzu China R&D Division established.CIPO (Procurement Department)established.

2012 Xi Jinping appointed as President. Henan Branch established. Chengdu Analysis Center established.

2013 Air pollution action plan announced.

2014

One Belt and One Road Initiative announced and Chinese economy reaches new normal state. Anti-corruption problems surface and APEC forum held in Beijing.

2015

Tianjin explosion accident occurs. One-child policy eased. "Bakugai" (explosive spending) becomes a popular new term in Japan.

Shimadzu China Mass Spectrometry Center established.

2016 Asian Infrastructure Investment Bank (AIIB) started. G20 Summit held in Hangzhou.

2017 First International One Belt and One Road Initiative Collaboration Summit held.

Shimadzu Vacuum Equipment (Shanghai) Co., Ltd. established.

2018 Presidential term limits abolished. Xian Analysis Center established.

As China evolves into a global market and achieves additional growth, Shimadzu established high-end development locations specialized in mass spectrometers and other R&D locations. Using talented human resources within China, we aim to release products and applications designed specifically for Chinese markets.Given the many companies in China with expertise in AI and other new technologies, we intend to strengthen alliances and develop businesses that originate in China.

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Policies for Business in China

Vision

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Shimadzu Brand Products Originating in China and Expanding Throughout the World

This expresses Shimadzu's global identity.

Thus far, we have achieved a certain amount of success by implementing activities based on business expansion as our greatest mission.However, in the future, we must establish business capabilities able to achieve sustained growth, from short, medium, and long-term perspectives. Given the expanding influence of businesses in China within the Shimadzu Group, it is essential to create awareness and capabilities for taking a leadership role within the Group. Due to the rapid market expansion and changes in China, there are many potential business sprouts. Therefore, accurately identifying such opportunities is a key prerequisite for deploying new businesses.

Strengthen ability to create businesses.1

Strengthen ability to expand businesses.2

Acquire ability to deploy businesses in a smart manner.3

Develop human resources able to achieve sustained growth.4

Basic Policies

Using Self-Awareness and an Action-Oriented Approach to Lead Global Businesses of the Shimadzu Group

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Key Measures

Direction of Market Changes in China

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• Increased investment in environmental issues indicated in the 13th 5-year plan (air, water, and soil pollution)

• Increased number of environment monitoring stations for regulatory compliance in China

ExpandingEnvironmental Markets

ExpandingEnvironmental Markets

• Healthcare reforms and increased number of secondary hospitals and medical checkup clinics to reduce healthcare costs

• Shift from treatment to increased investment in prevention (pharmaceuticals and health foods)

Expanding Healthcare Markets, Including

Medical Treatment and Foods

Expanding Healthcare Markets, Including

Medical Treatment and Foods

• Academia markets activated, mainly due to "Double First-Class University Plan"

• Increased investment in science and technology at various scientific research institutions

Expanding Academia and Scientific Research

Markets

Expanding Academia and Scientific Research

Markets

• Government structural reforms are expanding rights that were previously concentrated at prefectural-level institutions out to regional/city-level institutions as well.

• Increased investment in prefectural-level projects and expanded use of contract analysis companies

Development of Peripheral Markets

Development of Peripheral Markets

• Technological reforms are progressing due to national policy for becoming the global leader in AI by 2030.

• Building large-scale network infrastructure by retaining domestic companies

Rapid Development of Information Communication

Technologies

Rapid Development of Information Communication

Technologies

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1. Strengthen Capabilities Establish System with Seven Locations—Strengthen Inland Business Locations

In the past, locations were expanded based on economic development in coastal regions and functions of respective locations were strengthened based on coastal regions.

As development increases in inland regions (central, southwest, and northwest regions) in recent years, it has become necessary to strengthen coverage in inland regions.

The ability to serve customers needs to be strengthened in inland regions with economic development.

Source: National Bureau of Statistics of China; Note: "sales growth of industrial companies" refers to primary sales earnings of companies with primary sales earnings over 5 million yuan.

Economic Development Status Within ChinaIndustrial Company Sales by Region

Sale

s (1

00M

yuan

) 2.9 fold sales growth of industrial companies in China during the past 10 years

South

Southwest

Central

East

Northwest

North

Northeast

Percent of Industrial Company Sales by Region

Industrial growth was high in inland regions.

Northeast North Northwest East Central Southwest South

Deployment of Shimadzu Sales and Service Capabilities

Beijing Branch established in 1980*Beijing Analysis Center established in 1994*Shimadzu China Mass Spectrometry Center established in 2015*

Shenyang Branch established in 1985*Shenyang Analysis Center established in 2008*

Nanjing Branch established in 2000*

Henan Branch established in 2012*

Shanghai Branch established in 1982*Shimadzu Global Application Development Center established in 2008*Shimadzu China R&D Division established in 2011*

Suzhou Office established in 2003*

Shenzhen Branch established in 2003*

Guangzhou Branch established in 1984*Chongqing Branch established in 2001*

Kunming Branch established in 2002*

Sichuan Branch established in 1994*Chengdu Analysis Center established in 2012*

Xian Branch established in 2001*

Urumqi Branch established in 2001*

Wuhan Branch established in 2008*

The functions performed at locations in respective regions have been strengthened as the economy expanded in China.

Northeast North Northwest East Central Southwest South

2015

2016

Given the overall market share, there is room for additional growth.

Analytical & Measuring Instruments Sales Ratio by Region in China

1. Strengthen Capabilities Establish System with Seven Locations—Strengthen Inland Business Locations

Based on expansion to inland regions with economic development, establish central locations in seven regions in China. (Establish system with seven locations.)

In addition to sales functions, also establish and strengthen analysis centers at the central locations. Centralize technical service parts and improve operating efficiency at three locations—Beijing, Shanghai, and Guangzhou.

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Territories Districts Cities/Prefectures Cities

Sales ofIndustrial

Companies(100 B yuan)

Number ofRegular High

Schools

Gross DomesticProduct

(100 B yuan)

Number ofRegular High

School Students(Tens of

thousands)

Branches AnalysisCenters Parts Warehouses

SPK Northeast Jilin Province Changchun 22,322 58 5,530 43Heilongjiang Province Harbin 11,719 81 5,751 66Liaoning Province Dalian 33,243 116 7,732 29

Shenyang 7,272 40 North Hebei Province Shijiazhuang 45,648 118 5,441 42

Shanxi Province Taiyuan 14,624 79 2,735 42Tianjin City Tianjin 27,970 55 16,538 51Inner Mongolia Hohhot 18,926 53 3,091 24Beijing City Beijing 18,865 91 23,015 60

Northwest Gansu Province Lanzhou 8,689 45 2,096 42Xinjiang UygurAutonomous Region

Urumqi8,204 44 2,632 18

Qinghai Province Xining 2,171 12 1,132 7Ningxia Yinchuan 3,473 18 1,494 10Shaanxi Province Xian 19,691 92 5,801 85

SSH East Anhui Province Hefei 39,064 119 5,660 53Jiangxi Province Nanchang 32,955 97 4,000 59Jiangsu Province Nanjing 147,074 162 9,721 81 Shandong Province Qingdao 145,629 143 9,300 32

Ji'nan 6,100 71Shanghai City Shanghai 34,172 67 25,123 51 Zhejiang Province Hangzhou 63,214 105 10,050 48

Ningbo 8,004 16Central Henan Province Zhengzhou 73,366 129 7,312 82

Hunan Province Changsha 35,410 124 8,510 57Hubei Province Wuhan 43,179 126 10,906 96

Southwest Yunnan Province Kunming 9,830 69 3,968 44 Sichuan Province Chengdu 38,646 109 10,801 76 Chongqing City Chongqing 20,902 64 15,717 72 Tibet Autonomous Lhasa 136 6 377 2Guizhou Province Guiyang 9,877 59 2,891 37

SKC South Hainan Province Haikou 1,662 17 1,162 15Fujian Province Fuzhou 39,591 88 5,618 32

Xiamen 3,466 14Guangxi Nanning 20,443 71 3,410 38Guangdong Province Shenzhen 119,158 143 17,503 9 (NDI only)

Guangzhou 18,100 104 Total 13 5 3

By City/Prefecture (2015) By Major City (2015) Development of Shimadzu Locations in China

Currently, there is no analysis center in central China, so establish a central location in Wuhan, the largest city in central China.

Given the increase in new plants and other facilities in Xian in recent years, new service locations are being established or being strengthened.

Establish/strengthen analysis centers.

Establish technical service parts centers (Shanghai, Beijing, and Guangzhou only).

Requirements for Central Locations

Recent Trends and Future Development

Note: "" Planning to establish; "" Small locationSource of data broken down by city/prefecture or by major city: National Bureau of Statistics of China

1. Strengthen CapabilitiesStrengthen Service Capabilities and Establish Multi-Level Revenue

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Product sales growth rate exceeds competitors, but strengthen capabilities for aftermarket service and consumables sales. Infrastructure has been built for commercializing businesses, such as establishment of a TMP service center in Xian, but now foster businesses that will fully make a major contribution to the profitability of Shimadzu China.

Pre-sales

Post-sales

Customer Service

Feedback

1. Integrate Call Centers with R&D Dept.Improve the ability to generate inquiries/sales leads by improving customer satisfaction with improved customer response capabilities, by increasing the number of Shimadzu fans, and by strengthening pre-sales coverage.

2. Strengthen Online Sales CapabilitiesIn addition to previous direct sales and distributor sales networks, also establish online sales capabilities for consumables.

3. Establish New Revenue SourcesFully start operation of a reagent sales business.

2. Market Measures Accommodate China-Specific Needs—Strengthen Development Capabilities

Technology Research Laboratory

BUBusiness Units

ADCApplication

Development

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SRLS RDC MSC(CSC)

Head Officein Japan

Shimadzu China

Shimadzu has three development departments in China—SRLS (basic research), RDC (product development), and MSC (application development). To strengthen the ability to satisfy needs unique to China, such as on-site analysis and portability, change systems so that the organization can accurately identify and quickly respond to market business opportunities in a comprehensive manner from within China, including development, manufacturing, and sales.

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3. New Business Development Expand Alliances in the Clinical Medicine Market

Given the government's measures to strengthen preventive and basic healthcare, clinical medicine is currently one of the fastest growing markets in China. However, entering the market requires overcoming high barriers to entry, such as developing specialized reagents, establishing diagnostic methods, and obtaining CFDA certification.Getting up to speed in this rapidly expanding and developing market and capturing market share will involve the essential problem of building an alliance with a Chinese company that already has established the expertise for satisfying the market. Therefore, we will actively build alliances to quickly enter the market.

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In order to achieve business operations that provide reliable high profitability in rapidly changing markets, another important issue for the future is achieving a business structure that can provide diverse sources of revenue, not only from hardware, but also from software, consumables, and service, for example.Consequently, we will actively start new businesses toward reforming the profit structure accordingly.

1.1. • Expand network business

2.2. • Expand reagent sales business.

3.3.• Launch cell-related businesses.

4.4. • Satisfy online business.

3. New Business Development Start Businesses to Establish Multiple Revenue Levels

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