FY2010 2nd Quarter Business Results(FY2010 ending March 31, 2010)

Hisashi Ietsugu, President and CEONovember 6, 2009

Contents

FY2010 2Q Financial HighlightsChapter 1

Chapter 2 FY2010 Consolidated Earnings Forecast

Forward-looking StatementsThis material contains forward-looking statements about Sysmex Corporation and its group companies (the Sysmex Group). These forward-looking statements are based on the current judgments and assumptions of the Sysmex Group in light of the information currently available to it. Uncertainties inherent in such judgments and assumptions, the future course of our business operations, and changes in operating environment both in Japan and overseas may cause our actual results, performance, achievements, or financial position to be materially different from any future results, performance, achievements, or financial position either expressed or implied within these forward-looking statements.

(FY2010 ending March 31, 2010)

Chapter 1

FY2010 2Q Financial Highlights

Results for the First 6 Months of FY2010

(as of May)

3.35.55.555

Earlier Forecast

Ratio

6.0%

10.0%

10.0%

100%

RatioRatio

6.2%

12.0%

12.3%

100%

7.7%

12.6%

12.8%

100%

% over a Year

Earlier

3.56.76.9

56.4

First 6 Months of FY2009

103.4%7.0Ordinary Income

122.4%4.3Net Income

103.0%7.1Operating Income

98.7%55.7Net Sales

First 6 Months of FY2010

55

47

5652

41

6.16.4

4.9

6.9 7.1

5.46.5

6.9

6.7 7.0

4.7

3.54.33.6 4.1

0

10

20

30

40

50

60

70

FY20062Q

FY20072Q

FY20082Q

FY20092Q

FY20102Q

Net Sales

0

2

4

6

8

10

12

14Income

Net Sales Operating Income

Ordinary Income Net Income

(In billions of JPY)

(In billions of JPY)

＜First 6 Months＞

Income increasing 30 percent over earlier forecastsDepreciation of the yen, Favorable sales mix change and curtailment of SG&A improving gross profit margin

Operating/ordinary income achieving our largest year-on-year growth ever, despite forex impact

High-yen impact: ¥6.65 billion on net sales, ¥2.46 billion on operating incomeSales and income increased on local currency basis in all overseas, however decreased in Japan due to Foreximpact.

*Capital expenditure; ¥1.56billion Depreciation and amortization; ¥3.31billion R&D expenditure; ¥5.31billion

¥125¥95

Earlier Forecast(as of May)

¥133.2¥95.5

First 6 Months of FY2010

¥162.7¥106.1

First 6 Months of FY2009

1EUR1US$

55.756.4

0.550.67

2.76

1.480.42

- 6.65

FY2009

Breakdown of Net Sales and Operating Income

7.136.92

3.74

0.58- 1.64

- 2.46

FY2009 FY2010

Gross margin onincreased sales

Down 0.21 billion

Net Sales Operating Income

Down 0.75 billion

＜First 6 Months of FY2010＞

* FX impact excluded from each regional sales below

Japan

EuropeChina AP FX impact

Americas FX impact

(In billions of JPY)

FY2010 ＜First 6 Months of FY2010＞

SG&A increase

Gross margin increased as a result of an improvement in cost ratio -Depreciation of Technopark

¥0.23 billion-Direct sales and support in

Benelux¥0.72 billion

Breakdown of Balance Sheet

118.5 118.3

- 3.87

4.070.74

- 0.42

0.80

- 1.46

2009.3 2009.9

Cash

Tangible fixed assets

Intangible fixed assets

Down 0.14 billion

Assets

118.5 118.3

- 2.39

- 0.67

2.98

- 0.06

2009.3 2009.9

Down 0.14 billion

Liabilities/Equity

Down1.08

Up0.93

Up2.92

Down3.06

Notes/ Accounts Receivable-trade

Others

Others

Noncurrent

assetsC

urrent assets

EquityLiabilities

Current liabilities

Noncurrentliabilities

Retained earnings Others

(In billions of JPY)

5.67

-0.90 -0.31

8.18

3.77 4.23

10.64

-3.64

4.10

-5.12

-7.61

-2.50

-15

-10

-5

0

5

10

15

Operating CF Investing CF Financing CFFY2008 FY2009 FY2010

Increase/decreasein “cash and

deposits”

Consolidated Cash Flow

※Increase/decrease in “cash and cash deposits” include translation differences of cash and cash deposits.

First 6 months First 6 months First 6 months

(In billions of JPY)

Topics

New Products

Affiliates and Offices

Line-up of reagents for HISCL-2000i in the immunochemistry segment enrichedReagents for hepatitis B and cancer tumor launched (total of 15 items)

Hematology analyzer XT-4000i launched in Japan, Europe, and APTo be launched in the Americas and China from 3Q onward

Direct sales and support in Benelux started (in April)By new subsidiaries in Belgium and the Netherlands

OthersKids Park, a company nursery, opened Production of simplified influenza test kits increased in response to greater demands in the wake of the new influenza pandemicProgress made in the introduction of rapid breast cancer lymph-node metastasis detection systems in Japan and Europe

Preparations underway for market launch in the US and other regions

Geographic Segment Information: Americas

11.3

9.0

12.0

10.1

6.9

0.14

0.47

0.03

0.55

1.16

0

3

6

9

12

15

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

0.5

1

1.5

2

2.5OperatingIncome

＜First 6 Months ＞

119.0

78.8

113.6

85.4

63.5

1.2

4.0

0.3

5.2

12.2

0

30

60

90

120

150

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

5

10

15

20

25OperatingIncome

Net Sales Operating Income

＜First 6 Months ＞

（In millions of US$）

(In billions of JPY)% over a Year

Earlier

0.55

12.0

First 6 Months of FY2009

211.2%1.1Operating Income

94.3%11.3Net Sales

First 6 Months of FY2010

Hematology business continued to show good performance, posting sales increase on a local currency basis.

Hematology analyzer sales increased in the US. Reagent/service sales increased substantially.(hematology, hemostatis and urinalysis)Instrument sales decreased in Mexico and other countries in Central and South America.Sales in Canada made a turnaround on a local currency basis, after being negatively affected by the pandemic flu in 1Q.

Operating income increased substantially, as profitability improved due to greater sales in the North American market (direct sales).

* On a local currency basis: Net sales, 104.7%; Operating income, 234.7%

(In billions of JPY)

Geographic Segment Information: Europe

17.7

14.7

19.119.2

12.5

1.8 2.11.5

2.82.6

0

5

10

15

20

25

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

2

4

6

8

10OperatingIncome

133.1

101.1

117.9118.4

92.7

12.5 13.411.2

17.7 19.7

0

40

80

120

160

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

15

30

45

60OperatingIncome

Net Sales Operating Income

＜First 6 Months ＞

＜First 6 Months ＞

(In billions of JPY)

（In millions of EUR）

% over a Year

Earlier

2.8

19.1

First 6 Months of FY2009

91.2%2.6Operating Income

92.4%17.7Net Sales

First 6 Months of FY2010

(In billions of JPY)

Sales increased on a local currency basis, as direct sales regions steadily expanded.

High-end hematology analyzer sales increased because of the direct sales in France and strengthened support from distributors in the Middle East.Benelux, where direct sales started in April, contributed to the increase of sales.UK sales, particularly hematology sales, increased on a local currency basis.

Operating income increased on a local currency basis, because of direct sales and sales mix change.

* On a local currency basis: Net sales, 112.9%; Operating income, 111.5%

* Reform accounting standards for lease

* *

**

Geographic Segment Information: China

3.0

3.9

4.4

3.1

5.31.2

0.48

0.360.42

0.34

0

1

2

3

4

5

6

7

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

0.2

0.4

0.6

0.8

1

1.2

1.4OperatingIncome

230.2248.3

288.6

221.9

385.0

90.4

31.527.2 27.123.8

0

100

200

300

400

500

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

30

60

90

120

150OperatingIncome

Net Sales Operating Income

＜First 6 Months ＞

＜First 6 Months ＞

(In billions of JPY)

（In millions of Yuan）

% over a Year

Earlier

0.48

4.4

First 6 Months of FY2009

260.6%1.2Operating Income

121.2%5.3Net Sales

First 6 Months of FY2010

Sales in the hematology and non-hematology segments increased substantially.

Sales of high-end hematology analyzer models increased through direct business with customers and lease/sales via distributors.Hemostatis sales increased in the mid/low-end markets following the change of distributions.Double-digit sales growth both in the urinalysis and clinical chemistry segments.

Operating income increased substantially due to greater sales levels and improvement in cost ratio.

* On a local currency basis: Net sales, 133.4%; Operating income, 286.8%

(In billions of JPY)

Geographic Segment Information: AP

2.7

1.9

2.8

2.4

1.7

0.260.32

0.200.32

0.53

0

1

2

3

4

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

0.4

0.8

1.2

1.6OperatingIncome

41.8

27.0

37.2

31.1

26.2

3.6 4.13.1

4.3

8.1

0

15

30

45

60

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

4

8

12

16OperatingIncome

Net Sales Operating Income

＜First 6 Months ＞

＜First 6 Months ＞

(In billions of JPY)

（In millions of SG$）

% over a Year Earlier

0.32

2.8

First 6 Months of FY2009

162.5%0.53Operating Income

95.9%2.7Net Sales

First 6 Months of FY2010

(In billions of JPY)

Sales increased on a local currency basis in hematology and other fields.

Sales of high-end hematology analyzer models increased in Southeast Asia because of the solutions offered.Sales decreased in Oceania due to the large number of tenders in previous year.

Operating income resumed growth due to Sales increasing and SG&A reduction.

* On a local currency basis: Net sales, 112.3%; Operating income, 190.3%

Intra-area Transfer : Exports to Group AffiliatesSales to Customers: Korea, Taiwan and Mongolia Sales to Customers: Japan Operating Income

Geographic Segment Information: Japan

0.65

10.6

17.716.6

17.1

16.4

17.6

0.870.850.740.68

13.7

16.7

13.711.8

2.8

1.5

3.83.5

3.2

0

10

20

30

40

FY2006 FY2007 FY2008 FY2009 FY2010

0

2

4

6

8

10

12Net Sales Operating Income

32.2

※

34.6

30.930.3

＜First 6 Months ＞

27.9

<Including Korea, Taiwan, and Mongolia, etc.>

(In billions of JPY)(In billions of JPY)

Intraｰarea Transfer

Sales to Customers Korea, Taiwan, and

Mongolia, etc.

Japan 103.2%17.117.6

102.0%0.850.87

82.1%16.713.7

% over a Year Earlier

3.8

34.6

First 6 Months of FY2009

39.9%1.5Operating Income

93.0%32.2Net Sales

First 6 Months of FY2010

Japanese marketInstrument sales decreased in severe market.Sales of simplified test kits increased substantially because of the spread of pandemic flu.

Intra-area transfer: Sales to overseas affiliates decreased due to the forex situation.Operating income decreased, partly due to the forex situation.

Still better than the original estimation, partly due to tighter control of SG&A.

Chapter 2

FY2010 Consolidated Earnings Forecast

External Environments

Greater investment in public healthcare servicesGreater investment in public healthcare services

US Healthcare reform bill under deliberation– Elimination of more than 45 million uninsured people, etc.

China Spending 850 billion yuan by 2011– Covering over 90% of the population by 2011– Developing regional healthcare infrastructures (Plan to build 2,000+ district

hospitals, etc.)– Starting at the provincial level (Zhejiang invested 365 billion yuan to medical

by 2011)Japan Shift from health care cost containment policy

– Raising the ratio of total medical expenses to GDP– April 2010 revision in medical fees expected to be a positive number

Health care companies performing brisklyHealth care companies performing briskly

Steady performance of diagnostics-related companiesMore companies strengthening their healthcare business

Underway of recovery from the economic crisis Underway of recovery from the economic crisis (Double(Double--dip recession ?)dip recession ?)

Government-led support for economic recovery (Regime change in the US and Japan)Led by China and other emerging economies (Market structure changing due to expansion of the middle-income bracket)

Consolidated Earnings Forecast (Revised on November 2009)

FY2010 Consolidated Earnings Forecast

101.0111.8110.7

87.8

117.0

12.7

15.0

10.7

15.1 15.0

11.913.5

14.512.9

15.0

9.19.07.4

9.28.0

0

20

40

60

80

100

120

140

FY2006 FY2007 FY2008 FY2009 FY2010

Net

Sal

es

0

5

10

15

20

25

Income

Net Sales Operating Income Ordinary Income Net Income

(In billions of JPY)

Net Sales: ¥117 billion Operating Income: ¥15 billionOperating Margin: 12.8 %

Net Income: ¥9.2 billionNet Income Margin: 7.9 %

Planned exchange rate during 2nd Half: 1US$=¥90 1EUR=¥130

(For the years ended March 31)

1EUR

1US$

¥125(2nd Half)¥130

¥95(2nd Half)¥90Planned

Exchange Rate

as of MayRevised on November

¥8.1 billion

¥13 billion

¥13 billion

¥116 billion

FY2010

% over Earlier

113.6%

115.4%

115.4%

100.9%

¥15 billionOrdinary Income

¥9.2 billionNet Income

¥15 billionOperating Income

¥117 billionNet Sales

FY2010

Consolidated Earnings Forecast (Revised on November 2009)

Financial Targets- Sales and Operating Income by Geographical Region (Revised on November 2009)

5.6

4.0

5.35.0

3.7

0.33

0.54

0.36

0.64

0.95

0

2

4

6

8

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

0.5

1

1.5

2OperatingIncome

Net Sales Operating Income

12.0

6.8

10.1

8.1

6.4

0.78 0.820.61

1.30

2.30

0

3

6

9

12

15

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

0.6

1.2

1.8

2.4

3OperatingIncome

Net Sales Operating Income

15.6

20.8

23.3

19.1

24.3

2.80

1.78

0.21

0.99

0.59

0

6

12

18

24

30

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

1

2

3

4

5OperatingIncome

Net Sales Operating Income

36.2

31.5

35.3

39.1

25.3

3.54.6

3.0

5.1 5.3

0

10

20

30

40

50

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sales

0

4

8

12

16

20OperatingIncome

Net Sales Operating Income

22.6

37.8

35.4 35.835.9 37.0

1.3 1.81.71.51.5

30.031.5

29.325.5

6.4

3.24.6

7.87.4

0

20

40

60

80

FY2006 FY2007 FY2008 FY2009 FY2010

0

5

10

15

20Net Sales Operating Income

Japan<Including Korea, Taiwan,

and Mongolia, etc.>

68.869.066.864.9

Americas Europe

China AP

59.3

Intra-area Transfer : Exports to Group Affiliates

Sales to Customers: Korea, Taiwan and Mongolia

Sales to Customers: Japan Operating Income

※

(In billions of JPY)

(For the years ended March 31)

Projected Dividend (Not revised since May 2009)

¥ 50

¥ 50

Total

¥ 26¥ 24FY2009

¥ 25¥ 25FY2010（Forecast）

Year-end dividend

Interim dividend

<Contact>IR & Corporate Communication Div.Phone: +81-78-265-0500Email: info@sysmex.co.jpURL: