Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2024
[Japanese GAAP]May 9, 2024
Company name: EIKEN CHEMICAL CO.,LTD.
Stock exchange listing: Tokyo
Code number: 4549
URL: https://www.eiken.co.jp
Representative: Tsugunori Notomi
President & CEO
Contact: Hajime Watari
Senior Vice President & Executive Officer
Phone: +81-3-5846-3379
Scheduled date of Annual General Meeting of Shareholders: June 25, 2024
Scheduled date of commencing dividend payments: June 7, 2024
Scheduled date of filing annual securities report: June 26, 2024
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Fiscal year ended
March 31, 2024
40,052(7.4)
3,377(54.7)
3,568(52.8)
2,634(54.1)March 31, 2023
43,271
0.6
7,457(11.1)
7,568(11.0)
5,736(7.8)(Note) Comprehensive income:Fiscal year ended March 31, 2024:¥
2,931 million [(47.6) %]Fiscal year ended March 31, 2023:¥
5,595 million [(11.0) %]Basic earnings per
share

Diluted earnings per
share

Yen
Fiscal year ended
March 31, 2024
71.69
March 31, 2023
155.17(Reference) Equity in earnings (losses) of affiliated companies:

Rate of return on Ordinary profit to Operating profit toequitytotal assets ratio
net sales ratio

Yen

%

71.10
5.6
153.86
12.1
Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:

%

%

5.6
11.8
¥
¥

8.4
17.2
- million- million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Net assets

Millions of yen

61,651
66,275
As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio

Millions of yen¥¥

Net assets per share

%

Yen

74.0
74.2

1,318.38
1,327.47

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

45,97149,53545,613 million
49,154 million(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

3,806
7,575

(2,216)(316)(6,694)(2,095)

10,966
16,064

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

%

%

March 31, 2023

-

24.00

-

27.00

51.00

1,886

32.9

4.0

March 31, 2024

-

25.00

-

26.00

51.00

1,826

71.1

3.9

-

26.00

-

27.00

53.00

Yen Millions of yen

Fiscal year ending
March 31, 2025

40.9

(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2024 :Commemorative dividend- yenSpecial dividend- yen
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)(% indicates changes from the previous corresponding period.)
Basic
Profit attributable to
Net sales
Operating profit
Ordinary profit
earnings perowners of parent
share
Six months ending
September 30, 2024
Full year

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

21,500

6.1

2,870

33.6

2,830

27.2

2,230

37.7

64.45

43,100

7.6

5,660

67.6

5,620

57.5

4,480

70.1

129.49* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(Company name:New)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024:
40,041,438 shares
March 31, 2023:
43,541,438 shares
2) Number of treasury shares at the end of the period:
March 31, 2024:
5,443,508 shares
March 31, 2023:
6,512,625 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2024:
Fiscal Year ended March 31, 2023:

36,744,670 shares
36,967,242 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Millions of yen% Millions of yen

39,962
43,195

(7.5)
0.7

3,422
7,514

(54.5)(11.0)

Basic earnings per share
Fiscal year ended
March 31, 2024
March 31, 2023

Ordinary profit

Net income% Millions of yen% Millions of yen

3,581
7,613

(53.0)(10.6)

2,648
5,781

%

(54.2)(7.2)

Diluted earnings per share
Yen

Yen

72.07
156.4071.48
155.08(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Net assets

Millions of yen

61,503
66,404As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio

Millions of yen¥¥

45,82849,66745,470 million
49,287 million

Net assets per share

%

Yen

73.9
74.2

1,314.26
1,331.05

Table of Contents - Attachments
1. Overview of Consolidated Business Performance ....................................................................................2(1) Summary of Consolidated Business Performance for This Term ..........................................................2(2) Summary of Consolidated Financial Position for This Term .................................................................2(3) Summary of Cash Flows for This Term .................................................................................................3(4) Future Prospects .....................................................................................................................................4(5) Policy on the Determination of Dividends from Surplus, etc. ...............................................................4
2. Basic Stance Concerning Choice of Accounting Standards ......................................................................4
3. Consolidated Financial Statements and Principal Notes ...........................................................................5(1) Consolidated Balance Sheets .................................................................................................................5(2) Consolidated Statements of Income and Comprehensive Income .........................................................7(3) Consolidated Statements of Changes in Net Assets ...............................................................................9(4) Consolidated Statements of Cash Flows .............................................................................................. 11(5) Notes to Consolidated Financial Statements .......................................................................................13(Notes on going concern assumption) ..............................................................................................13(Material basis for the preparation of consolidated financial statements) ........................................13(Notes to Consolidated Balance Sheets) ..........................................................................................16(Notes to Consolidated Statements of Income) ................................................................................16(Notes to Consolidated Statements of Comprehensive Income) ......................................................17(Notes to Consolidated Statements of Changes in Net Assets) ........................................................18(Notes to Consolidated Statements of Cash Flows) .........................................................................20(Lease transactions) ..........................................................................................................................20(Segment information) .....................................................................................................................22(Per share information) .....................................................................................................................23(Significant subsequent events) ........................................................................................................23
4. Non-consolidated Financial Statements and Principal Notes ..................................................................24(1) Non-consolidated Balance Sheets ........................................................................................................24(2) Non-consolidated Statements of Income .............................................................................................27(3) Non-consolidated Statements of Changes in Net Assets .....................................................................28(4) Notes to Non-consolidated Financial Statements ................................................................................30(Notes on going concern assumption) ..............................................................................................30(Significant accounting policies) ......................................................................................................30(Notes to Non-consolidated Balance Sheets) ........................................................................................32(Notes to Non-consolidated Statements of Income) ..............................................................................33(Significant subsequent events) ........................................................................................................33
5. Others ......................................................................................................................................................34(1) Changes in Officers .............................................................................................................................34(2) Sales .....................................................................................................................................................34－1－

1. Overview of Consolidated Business Performance(1) Summary of Consolidated Business Performance for This Term
During the consolidated fiscal year under review, the Japanese economy progressed toward normalized economic activities andgradually recovered owing to the reclassification of COVID-19 to a Class 5 infectious disease under the Act on the Prevention of
Infectious Diseases and Medical Care for Patients with Infectious Diseases. Meanwhile, overseas economies remained unstable due
to downside risks mainly caused by surging global resource prices and the impact of monetary tightening against a backdrop of
geopolitical uncertainty, including the protracted situation in Ukraine as well as growing tensions in the Middle East.
The business environment became increasingly severe in the clinical diagnostics industry due to measures to cap medical
expenses and rising costs such as for logistics and raw material procurement, etc., on account of yen depreciation and high crude oil
prices. Corporations are being forced to focus on greater cost competitiveness and to actively expand overseas.
In the context of this business environment, the Eiken Group is implementing key measures focused on the three key businessfields of “Contribution to cancer prevention and treatment,” “Contribution to the eradication and control of infectious diseases,” and“Provision of products and services useful for health care” and striving to achieve sustainable growth and steadily enhance
profitability for the Group as a whole, in accordance with the Medium-term Management Plan established based on the Group’s
management framework “EIKEN ROAD MAP 2030.”
In addition, as a Group with a mission to protect the health of people worldwide, the Eiken Group is addressing issues not onlyin “Medical” but also in the “Environment,” “Society,” and “Governance.” Through this, we strive to further enhance our corporate
value and achieve a sustainable society.
The net sales for the consolidated fiscal year under review declined to 40,052 million yen (down 7.4% year-on-year) due tosales of COVID-19 genetic testing reagents using the LAMP method decreasing significantly following limited demand for genetic
testing in response to the reclassification of COVID-19 under the Act on the Prevention of Infectious Diseases and Medical Care forPatients with Infectious Diseases.
For net sales by product class and type, sales of microbiological testing reagents increased to 4,312 million yen (up 9.5% yearon-year) due to a substantial recovery of products related to infectious diseases other than COVID-19, particularly rapid diagnosis
kits and drug sensitivity testing reagents. As for urinalysis reagents, sales were 4,401 million yen (up 6.2% year-on-year), with thedomestic hospital market and the medical examination market having recovered to pre-COVID-19 pandemic levels. Sales for
immunological and serological reagents were 21,710 million yen (up 4.8% year-on-year) due to fecal immunochemical test reagentsrecovering to pre-COVID-19 pandemic levels in the domestic market, together with significantly increased sales in overseas markets.
Sales for clinical chemistry reagents were 575 million yen (down 2.5% year-on-year). Sales for the equipment and culture medium
for food and environment related category amounted to 1,961 million yen (down 9.4% year-on-year). Sales in other category(medical devices, genetic-related products, etc.) fell to 7,090 million yen (down 39.5% year-on-year) due to a significant decreasein sales for COVID-19 detection reagents.
Overseas sales were 10,115 million yen (up 15.0% year-on-year) as sales for fecal immunochemical test reagents, urinalysis
reagents, and Mycobacterium tuberculosis complex detection reagent kits for Nigeria increased significantly.
Regarding profit, operating profit was 3,377 million yen (down 54.7% year-on-year) due to decreases in sales of high-profit
COVID-19 detection reagent products and income from patent rights for the LAMP method. Ordinary profit was 3,568 million yen(down 52.8% year-on-year) while profit attributable to owners of parent was 2,634 million yen (down 54.1% year-on-year).

(2) Summary of Consolidated Financial Position for This Term
The financial position at the end of the consolidated fiscal year under review was as follows.
When compared to the end of the previous consolidated fiscal year, total assets decreased by 4,623 million yen, liabilities
decreased by 1,059 million yen, and net assets decreased by 3,564 million yen.
Major increases and decreases in the category of assets include a decrease of 2,009 million yen in cash and deposits and anincrease of 1,359 million yen in notes and accounts receivable - trade, and contract assets. In addition, long-term time deposits
declined by 3,000 million yen. In the category of liabilities, electronically recorded obligations - operating decreased by 174 million
yen, and income taxes payable decreased by 827 million yen. In the category of net assets, despite having recorded profit attributableto owners of parent, shareholders’ equity decreased by 3,838 million yen due to the payment of dividends and purchase of treasury
shares. In addition, due to the cancellation of treasury shares, capital surplus decreased by 242 million yen, retained earnings
decreased by 1,771 million yen, and treasury shares decreased by 2,013 million yen.
As a result of the above, the equity ratio decreased to 74.0% from 74.2% at the end of the previous consolidated fiscal year.

－2－(3) Summary of Cash Flows for This Term
Cash and cash equivalents for the consolidated fiscal year under review (hereinafter referred to as “net cash”) decreased by
5,098 million yen compared to the end of the previous consolidated fiscal year to 10,966 million yen on March 31, 2024.
The following is a summary of cash flows and related causes for the consolidated fiscal year under review.
Cash flows from operating activities
Net cash provided by operating activities was 3,806 million yen (compared to the net cash proceed of 7,575 million yen in theprevious consolidated fiscal year). This was mainly due to a 1,355 million yen expenditure due to increased trade receivables, a 322
million yen proceed caused by a decrease in inventories, a 212 million yen expenditure caused by a decrease in trade payables, and3,503 million yen in profit before income taxes.
Depreciation totaled 2,326 million yen.
Cash flows from investing activities
Net cash used in investing activities was an expenditure of 2,216 million yen (compared to the net cash expenditure of 316
million yen in the previous consolidated fiscal year). This was mainly due to 1,976 million yen in purchase of property, plant andequipment, 2,341 million yen in payments into time deposits, and 2,279 million yen in proceeds from withdrawal of time deposits.
Cash flows from financing activities
Net cash used in financing activities was 6,694 million yen (compared to the net cash expenditure of 2,095 million yen in theprevious consolidated fiscal year). This was mainly due to a 4,707 million yen expenditure due to purchase of treasury shares anddividends paid of 1,927 million yen.
(Reference) Change in cash flow related indicators

Equity ratio (%)
Equity ratio based on fairvalue (%)
Years of debt redemption(Years)Interest(Times)coverage

ratio

Fiscal year ended

Fiscal year ended

Fiscal year ended

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

March 31, 2022

March 31, 2023

March 31, 2024

73.5

74.3

72.8

74.2

74.0

144.5

143.5

102.1

87.3

112.2

0.1

0.1

0.2

0.4

0.9

1,118.2

1,908.2

983.3

468.5

222.9

Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on fair value: Total market value of shares / Total assets
Years of debt redemption: Interest-bearing debts / Cash flow
Interest coverage ratio: Cash flow / Interest paid
(Note 1) The indicators were calculated using consolidated financial figures.
(Note 2) The total market value of shares was calculated based on the total number of issued shares (excluding treasury shares).
(Note 3) Operating cash flow is used in Cash Flows.
(Note 4) Interest-bearing debts include all debts recorded on the Consolidated Balance Sheets for which interest is paid.

－3－(4) Future Prospects
Regarding future prospects, difficult conditions will likely continue due to the unstable global situation in Ukraine, the Middle
East, etc., soaring resource and raw material prices and the impact of rising prices caused by the weaker yen.
In addition to responding to the unfolding changes in its business environment, the Eiken Group will identify existing businessdomains as its core businesses and implement key measures focused on the three key business fields of “Contribution to cancer
prevention and treatment,” “Contribution to the eradication and control of infectious diseases,” and “Provision of products andservices useful for health care,” based on the Group’s management framework “EIKEN ROAD MAP 2030.” In the field of “cancer,”we will focus on areas that are more directly related to treatment, while in the field of “infectious diseases,” we will focus onestablishing simpler testing technologies. In the field of “healthcare,” the Group will expand its products and services to serve theneeds of remote diagnosis and home testing.
With a view to establishing a sustainable society, the Group has identified 11 materialities (key issues) for priority response andis deploying detailed action plans for each. The Group sets key performance indicators (KPIs) For each materiality and proceedswith each materiality while monitoring progress toward achievement. As a Group with a mission to protect the health of people
worldwide, the Group is addressing issues not only in “Medical” but also in the “Environment,” “Society,” and “Governance.” We
believe that contributing solutions to social issues in this way will further bolster our corporate value and lead to achieving asustainable society.
Regarding our performance forecast for the next fiscal year, we forecast sales of 43,100 million yen (up 7.6% year-on-year) due
to increased sales of fecal immunochemical test reagents and Mycobacterium tuberculosis complex detection reagent kits oveseas.
Regarding profit, we forecast operating profit of 5,660 million yen (up 67.6% year-on-year), ordinary profit of 5,620 million yen (up57.5% year-on-year), and profit attributable to owners of parent of 4,480 million yen (up 70.1% year-on-year) due to an increase in
expenses from investment for research and development and investment to bolster management fundamentals.
Overseas, we forecast net sales of 12,320 million yen (up 21.8% year-on-year) and a sales ratio of 28.6%.

(5) Policy on the Determination of Dividends from Surplus, etc.
The Company regards distribution of profits to its shareholders as one of the most important management issues. Our Company’s
basic policies are to implement a stable dividend policy based on consideration for internal reserves required for reinforcement of
our financial base and active business development, and to distribute profits by paying stable dividends twice annually in the formof an interim dividend and a year-end dividend. Specifically, based on the above-mentioned policies, the Company endeavors tomaintain dividends with a goal of 30% or higher for its consolidated dividend payout ratio. In its Articles of Incorporation, theCompany has set the decision-making body regarding dividends from surplus as follows: “Dividends from surplus, etc., can be
distributed by a resolution of the Board of Directors in accordance with regulations of Article 459, Paragraph 1 of the Companies
Act.”
The year-end dividend for the current fiscal year has been set at 26 yen per share. As we have already paid an interim dividendof 25 yen on December 1, 2023, dividends on an annual basis will amount to 51 yen per share.
In regard to per share dividends for the next fiscal year, we forecast ordinary dividends consisting of an interim dividend of 26
yen and a year-end dividend of 27 yen. Internal reserves will be used effectively from a mid to long-term perspective in investment
for R&D aimed at strengthening our business structure, facilities investment, and efforts to improve business efficiency.

2. Basic Stance Concerning Choice of Accounting Standards
Taking into consideration the comparability of consolidated financial statements across periods and among companies, theGroup prepares its consolidated financial statements using Japanese GAAP.
Regarding application of International Financial Reporting Standards, the Group’s policy is to deliberate in consideration of the
future situation in Japan and overseas.

－4－

3. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsInvestments in leases

18,317

16,308

11,122

12,482337

337

Merchandise and finished goods
Work in process

4,739
1,940

4,170
2,035

Raw materials and supplies
Other

1,733
1,033

1,892
633

Allowance for doubtful accounts

(6)

(7)

39,21737,851

25,36725,811

Accumulated depreciation(13,117)(13,821)

Buildings and structures, net

12,24911,989Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

7,155

7,638

Accumulated depreciation(5,765)(6,115)

Machinery, equipment and vehicles, net

1,390

1,522

5,027
(3,950)5,371(4,374)

1,076

996

1,928
329

1,928
286

Accumulated depreciation

(154)

(133)

Leased assets, net

174

153

Construction in progress

382

414

17,202

17,005

1,054

792

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

586

597

Long-term time deposits
Retirement benefit asset

4,900
1,448

1,900
1,821

Deferred tax assets
Other

551
1,349

356
1,349

Allowance for doubtful accounts

(34)

(23)

Total investments and other assets

8,802

6,001

27,05823,79966,27561,651

Total non-current assets
Total assets－5－

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

4,685
2,933

4,648
2,759

Lease liabilities
Income taxes payable

390
827

384
-

Provision for bonuses
Other

766
2,839

674
2,885

Total current liabilities

12,443

11,351

3,000
919

3,000
951

Asset retirement obligations
Other

34
342

35
342

Total non-current liabilities

4,296

4,329

16,74015,680Shareholders' equity
Share capital

6,897

6,897

Capital surplus
Retained earnings

8,076
36,865

7,892
35,801

Non-current liabilities
Bonds payable
Lease liabilities

Total liabilities
Net assets

Treasury shares(3,095)(5,686)

Total shareholders' equity

48,74344,904

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

28

35

268

353

Remeasurements of defined benefit plans

115

319

Total accumulated other comprehensive income

411

708

Share acquisition rights
Total net assets
Total liabilities and net assets

－6－

380

358

49,53545,971

66,27561,651

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales
Cost of sales

43,271
22,76540,052
23,328Gross profit

20,506

16,723

Selling, general and administrative expenses

13,04913,345

Operating profit

7,457

3,377

Non-operating income
Interest income

158Dividend income
Rental income

3
18

4
18

Compensation income for damage
Compensation income

38
8

5

Outsourcing service income
Subsidy income

9
10

10
155

Foreign exchange gains
Other

14
35

50
31

Total non-operating income

154

284

Non-operating expenses
Interest expenses

16

17

Loss on redemption of investment securities
Compensation expenses

13
9

-

Commission for purchase of treasury shares
Other

3

70
6

Total non-operating expenses

42

93

7,568

3,568

Gain on sale of non-current assets
Gain on sale of investment securities

24
56

1
-

Total extraordinary income

81

1

57

66

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale and retirement of non-current assets

57

66

Profit before income taxes

Total extraordinary losses

7,592

3,503

Income taxes - current
Income taxes - deferred

1,758
97

767
101

Total income taxes

1,856

869

Profit

5,736

2,634

Profit attributable to non-controlling interests
Profit attributable to owners of parent

－7－

-

-

5,736

2,634

Consolidated Statements of Comprehensive Income(Millions of yen)
For the fiscal year
ended March 31, 2023
ProfitOther comprehensive income

For the fiscal year
ended March 31, 2024

5,736

2,634

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(5)
9

7
84

Remeasurements of defined benefit plans, net of tax

(144)

204

Total other comprehensive income

(140)

296

Comprehensive income

5,595

2,931

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

5,595

2,931

-

-

－8－

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

6,897

8,000

Retainedearnings

Treasury shares

Total
shareholders'equity(3,126)44,93433,162(2,033)(2,033)

5,736

5,736

75

(0)

(0)

30

105
-

-

75

3,703

30

3,808

6,897

8,076

36,865(3,095)48,743

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements accumulated Share acquisition Total net assets
difference onrightstranslationof defined
otheravailable-foradjustment
benefit plans comprehensive
sale securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

33

258

259

551

316

45,803(2,033)
5,736
(0)
105
(5)

9

(144)

(140)

63

(76)

(5)

9

(144)

(140)

63

3,731

28

268

115

411

380

49,535－9－

For the fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

6,897

8,076

Retainedearnings

Treasury shares

Total
shareholders'equity(3,095)48,74336,865(1,927)(1,927)

2,634

2,634

58

(4,636)(4,636)

32

91

(242)

(1,771)

2,013

-

-

(183)

(1,064)(2,590)(3,838)

6,897

7,892

35,801(5,686)44,904

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements accumulated Share acquisition Total net assets
difference onrightstranslationof defined
otheravailable-foradjustment
benefit plans comprehensive
sale securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

28

268

115

411

380

49,535(1,927)
2,634(4,636)
91
7

84

204

296

(22)

274

7

84

204

296

(22)

(3,564)

35

353

319

708

358

45,971－10－

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended March 31, 2023
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31, 2024

7,592

3,503

Depreciation
Increase (decrease) in allowance for doubtful accounts

2,125
21

2,326
(9)

Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset

(10)
(118)

(92)
(57)

Share-based payment expenses
Interest and dividend income

63
(18)

15
(12)

Interest expenses
Foreign exchange losses (gains)

16
0

17
0

Compensation income
Compensation expenses

(8)
9

(5)
-

Subsidy income
Loss (gain) on sale and retirement of property, plantand equipment
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables

(10)

(155)

33

61

(56)
835

(1,355)Decrease (increase) in inventories
Decrease (increase) in other current assets

(180)
(533)

322
510

Decrease (increase) in other investments
Increase (decrease) in trade payables

2
161

(1)
(212)

Increase (decrease) in other current liabilities
Other, net

(111)
(28)

343
220

Subtotal

9,785

5,417

Interest and dividends received
Interest paid

23
(16)

12
(17)

Proceeds from insurance income
Income taxes paid

4(2,224)

4(1,610)

3

-

7,575

3,806

Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment(3,206)(1,976)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

27
(72)

8
(114)

Payments for retirement of non-current assets
Proceeds from sale of investment securities

(17)
61

(63)
-

Proceeds from redemption of investment securities
Payments into time deposits

3,000(5,253)(2,341)

Proceeds from withdrawal of time deposits
Purchase of insurance funds

5,224
(100)

2,279
(31)

Proceeds from cancellation of insurance funds
Other payments

100
(79)

31
(6)

Net cash provided by (used in) investing activities(316)(2,216)－11－

(Millions of yen)
For the fiscal year
ended March 31, 2023
Cash flows from financing activities
Purchase of treasury shares

For the fiscal year
ended March 31, 2024
(0)(4,707)(2,033)(62)(1,927)(59)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(2,095)(6,694)

0

6

5,164

(5,098)Cash and cash equivalents at beginning of period

10,90016,064

Cash and cash equivalents at end of period

16,064

10,966

Dividends paid
Other, net－12－(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Material basis for the preparation of consolidated financial statements)
1. The scope of consolidation(1) Number and name of consolidated subsidiaries: 2
EIKEN CHINA CO., LTD.
EIKEN MEDICAL AMERICA INC.
As EIKEN MEDICAL AMERICA INC. was newly established in the consolidated fiscal year under review, it is included in
the scope of consolidation.
(2) Number and name of the principal non-consolidated subsidiary
Not applicable.
2. Equity method
Not applicable.
3. Accounting period of consolidated subsidiaries
Of the consolidated subsidiaries, the fiscal closing date of EIKEN CHINA CO., LTD. is December 31.
Consolidated financial statements are prepared by implementing closing (provisional closing) in accordance with reasonable
procedures based on formal closing.
The fiscal closing date of the other consolidated subsidiary is in line with the consolidated fiscal closing date.
4. Accounting policies(1) Valuation standards and methods for significant assets
1) Securities
a. Held-to-maturity debt securities
Stated at amortized cost (straight-line method)b. Available-for-sale securities
Securities other than shares, etc., which do not have a market priceMarket value method(The valuation difference is directly included in net assets, and cost of sales is determined by the moving-average method.)
Shares, etc., which do not have a market pricePrincipally the cost method by the moving-average method
2) Derivative financial instruments
Market value method
3) Inventories
Merchandise and finished goods, raw materials, and work in process
Cost method by the moving-average method (carrying amount on the consolidated balance sheet calculated by writing down
values based on decreased profitability) is adopted.
Supplies
Cost method by the last purchase price method (carrying amount on the consolidated balance sheet calculated by writing
down values based on decreased profitability) is adopted.

－13－

(2) Depreciation method of significant depreciable assets
1) Property, plant and equipment (excluding leased assets)
The Company and its domestic consolidated subsidiaries adopt the declining-balance method, and overseas consolidated
subsidiaries adopt the straight-line method.
However, the straight-line method is adopted for buildings purchased on or after April 1, 1998 (excluding facilities attached tobuildings), and for facilities attached to buildings and structures purchased on or after April 1, 2016.
Major useful lives are as follows:
Buildings and structures: 7-40 years
Machinery, equipment, and vehicles: 4-10 years
Tools, furniture and fixtures 2-15 years
2) Intangible assets (excluding leased assets)
Straight-line method
For internal use software, the straight-line method based on amortization over the internally estimated useful lives (5 years)
is adopted.
3) Leased assets
Leased assets are depreciated over the lease terms as useful lives using the straight-line method without any residual value.
(3) Accounting standards for significant reserves and allowances
1) Allowance for doubtful accounts
In order to prepare for possible credit losses on trade receivables, etc., the estimated amount of non-recoverable receivables
based on the historical loss rate for general receivables and specific collectability for specific doubtful receivables are recorded.
2) Provision for bonuses
In order to prepare for payments of bonuses to the employees, the estimated payable amount to be used in the future attributable
to the consolidated fiscal year under review is recorded as provision for bonuses.
(4) Accounting method for retirement benefits
1) Period attribution method for estimated retirement benefits
In calculating retirement benefit obligations, the method of attributing the estimated amount of retirement benefits to the periods
up to the end of the consolidated fiscal year under review is based on the benefit formula basis.
2) Accounting method for actuarial difference and past service cost
Past service cost is expensed using the straight-line method over a period of definite years (3 years) within the employees’
average remaining service years at the time when it is incurred.
Actuarial differences are accounted for as expenses over a certain number of years within the average remaining years of serviceof the corresponding employees (12 years) using the straight-line method, commencing with the consolidated fiscal year
following the one in which they were incurred.
3) The accounting methods of unrecognized actuarial gain and loss and unrecognized past service cost
For the accounting methods of unrecognized actuarial gain and loss and unrecognized past service cost, after adjusting tax
effect, they are recorded as remeasurements of defined benefit plans under accumulated other comprehensive income in net assets.

－14－

(5) Significant revenue and expense recognition standards
1) Sales of merchandise and finished goods
Sales of merchandise and finished goods include the manufacture and sale of clinical diagnostic reagents and clinical diagnostic
equipment. The Company principally recognizes revenue from sales of merchandise and finished goods when making deliveryof the goods to a customer as it satisfies a performance obligation by transferring control of the goods to a customer based onreceipt of the goods. For clinical diagnostic equipment which requires installation at the time of sale, the Company recognizes
revenue at inspection of installed equipment as it satisfies a performance obligation by transferring control of the goods to acustomer based on inspection by a customer.
2) Royalty revenue
Royalty revenue includes upfront payment based on license agreement etc., milestone revenues, and running royalty calculated
based on net sales etc. For upfront payment, the Company recognizes revenue at customers’ receipt of the right which theCompany promised to transfer to a customer based on the contract. For milestone revenues, the Company recognizes revenue atachievement of the milestone defined in the contract. For running royalty calculated based on net sales etc., the Company
recognizes revenue when sales or usage occur, or it satisfies a performance obligation for which sales-based or usage-based
royalty is allocated, whichever is later.
(6) Translation of significant foreign currency denominated assets and liabilities into Japanese yen
Foreign currency denominated monetary receivables and payables are translated into Japanese yen using the spot exchange rateon the closing date and the translation difference is charged or credited to income. The assets, liabilities, income, and expenses ofoverseas subsidiaries and affiliates are translated into yen at the year-end spot exchange rate, and translation adjustments areincluded in foreign currency translation adjustments in net assets.
(7) Significant hedge accounting method
1) Hedge accounting method
The appropriation procedure is adopted to foreign exchange fluctuation risk hedging that satisfies the relevant requirements.
2) Hedging instruments and hedged items, hedging policy
The risks of foreign exchange fluctuation are hedged in accordance with the Company’s rules.
Hedging instruments and hedged items where hedge accounting was applied for the consolidated fiscal year under review are
as follows.
Hedging instruments: Forward exchange contracts
Hedged items:

Foreign currency denominated accounts payable, foreign currency denominated accounts payable other3) Assessment of hedge effectivenessFor forward exchange contracts, hedged items with the same date and amount and denominated in the same currency areallocated to each account payable, accounts payable – other. Therefore, the correlation by foreign exchange fluctuation thereafteris ensured completely, and the assessment of hedge effectiveness is omitted.
(8) Funds covered by consolidated statements of cash flows
Funds (cash and cash equivalents) as used in the consolidated statements of cash flows comprises cash on hand, deposits
available for withdrawal as needed, and short-term investments due for redemption within three months from the date ofacquisition, which are easily cashable and are subject to minimal risk of fluctuation in value.

－15－

(Notes to Consolidated Balance Sheets)*1. Receivables from contracts with customers in notes and accounts receivable - trade and contract assets are as follows.
(Million yen)
As of March 31, 2023
497

802

10,398

11,440Notes
Accounts receivable - trade

As of March 31, 2024

*2. Contract liabilities in other is as follows.
(Million yen)
As of March 31, 2023
Contract liability

As of March 31, 2024
30

62

*3. Regarding accounting policies for notes maturing on the last day of the consolidated fiscal year, although the last day of theconsolidated fiscal year under review was a holiday for financial institutions, the notes are treated as if the settlement was made on
the maturity date.
Notes maturing on the last day of the consolidated fiscal year under review are as follows.
(Million yen)
As of March 31, 2023
Notes
4.

As of March 31, 2024
17-

Overdraft contracts and commitment lines are concluded for efficient procurement of working capital. The balance of unexecutedloans based on these contracts is as follows.
(Million yen)
As of March 31, 2023
Total of overdraft maximum amount andcommitment lines
Outstanding borrowings
Difference

As of March 31, 2024
5,400

4,600

5,400

4,600

(Notes to Consolidated Statements of Income)*1. Revenue from contracts with customers is not presented independently. Revenue from contracts with customers is as follows.
(Million yen)
For the fiscal year
For the fiscal year
ended March 31, 2023
ended March 31, 2024
42,94439,767*2. Ending inventory is the amount after being written down due to decreased profitability, and the following loss on valuation of
inventory (the amount after offset of reversal with reversal method), is included in total cost of sales.
(Million yen)
For the fiscal year
For the fiscal year
ended March 31, 2024
ended March 31, 2023
310
114

－16－

*3. The main expense items and amounts of selling, general and administrative expenses are as follows.
(Million yen)
For the fiscal year
ended March 31, 2024

For the fiscal year
ended March 31, 2023
Salaries

2,268

2,526

Provision for bonuses

400

353

Retirement benefit expenses

76

112

4,065

3,939

21

(1)

Research and development expenses
Provision of
accounts

allowancefordoubtful*4. Research and development expenses included in general and administrative expenses, and manufacturing costs incurred during theperiod are as follows.
(Million yen)
For the fiscal year
For the fiscal year
ended March 31, 2024
ended March 31, 2023
4,065
3,939
*5. Description of loss on sale and retirement of non-current assets is as follows.
(Million yen)
For the fiscal year
ended March 31, 2024

For the fiscal year
ended March 31, 2023
Buildings and structures

015

Machinery, equipment and vehicles

91

Tools, furniture and fixtures

16

0

Software-3

Dismantlement cost
Total

30
57

46
66

(Notes to Consolidated Statements of Comprehensive Income)*1. Reclassification adjustment and tax effect relating to other comprehensive income(Million yen)
For the fiscal year
ended March 31, 2024

For the fiscal year
ended March 31, 2023
Valuation difference on available-for-sale securities:
Amount incurred during the period
Reclassification adjustment
Before tax effect adjustment
Tax effect
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment:
Amount incurred during the period
Remeasurements of defined benefit plans, net of tax:
Amount incurred during the period
Reclassification adjustment
Before tax effect adjustment
Tax effectRemeasurements of defined benefit plans, net oftax
Total other comprehensive income

－17－

(0)
(6)
(7)
2

11
11
(3)

(5)

7

9

84

(182)
(25)
(208)
63

315
(20)
294
(90)

(144)

204

(140)

296

(Notes to Consolidated Statements of Changes in Net Assets)
For the fiscal year ended March 31, 2023
1. Class and total number of issued shares and class and total number of treasury shares(Shares)Number of shares at
beginning of period

Increase during
periodDecrease during
periodNumber of shares at
end of period

Issued shares
Common shares
Total

43,541,438－－

43,541,438

43,541,438－－

43,541,438

6,576,861

44

64,2806,512,625

6,576,861

44

64,2806,512,625

Treasury shares
Common shares(Notes) 1. 2.
Total(Notes)1. The increase in treasury shares by 44 shares of common shares is due to the purchase of shares of less than one unit.
2. The decrease in treasury shares by 64,280 shares of common shares is due to the disposal of treasury shares as restricted
stock units.

2. Share acquisition rights and treasury share acquisition rights

Description of Shareacquisition rights

Category

The Company(Parent
company)

Number of shares for Share acquisition rights (Share)
Class of shares
Balance at
Number offor Share
theend of the
Number ofshares at
Increase
Decreaseacquisition
periodshares at end
beginning of during period during periodrightsof period (Million yen)periodShare acquisition rights
as stock options
Total

－

－

－

－

－

380

－

－

－

－

－

380

3. Dividends(1) Cash dividends paid

(Resolution)

Class ofsharesTotal cash
dividends(Million yen)

Dividend per share(Yen)

Record date

Effective date

April 28, 2022 Boardof Directors meeting

Commonshares1,145

31March 31, 2022

June 6, 2022

October 27, 2022
Board of Directors
meeting

Commonshares887

24

September 30, 2022

December 1, 2022

(2) Dividends for which the record date falls in the current period, but the effective date falls in the following period(Resolution)

Class ofsharesTotal cash
dividends(Million yen)

DividendsourceDividend pershare (Yen)Record date

Effective date

April 28, 2023 Boardof Directors meeting

Commonshares999

Retainedearnings

27

March 31, 2023

June 8, 2023

－18－

For the fiscal year ended March 31, 2024
1. Class and total number of issued shares and class and total number of treasury shares(Shares)Number of shares at
beginning of period

Increase during
periodDecrease during
periodNumber of shares at
end of period

Issued shares
Common shares(Note) 1.
Total

43,541,438－

3,500,000

40,041,438

43,541,438－

3,500,000

40,041,438

6,512,625

2,500,000

3,569,117

5,443,508

6,512,625

2,500,000

3,569,117

5,443,508

Treasury shares
Common shares(Notes) 2. 3.
Total(Notes)1. The decrease in total number of issued shares by 3,500,000 shares of common shares is due to the cancellation of treasury
shares based on a resolution of the Board of Directors.
2. The increase in treasury shares by 2,500,000 shares of common shares is due to the purchase of treasury shares based ona resolution of the Board of Directors.
3. The decrease in treasury shares by 3,569,117 shares of common shares is due to the 3,500,000 share decrease caused by
the cancellation of treasury shares based on a resolution of the Board of Directors, the 35,417 share decrease caused by
the disposal of treasury shares as restricted stock units, and the 33,700 share decrease caused by the exercise of stock
options.

2. Share acquisition rights and treasury share acquisition rights

Category

The Company(Parent
company)

Description of Shareacquisition rights

Share acquisition rights
as stock options
Total

Number of shares for Share acquisition rights (Share)
Class of shares
Balance at
Number offor Share
Number of the end of theshares at
Increase
Decreaseacquisition
periodshares at end
beginning of during period during periodrights(Millionyen)of period
period

－

－

－

－

－

358

－

－

－

－

－

358

－19－

3. Dividends(1) Cash dividends paid

(Resolution)

Total cashClass ofsharesdividends(Million yen)

Dividend per share(Yen)

Record date

Effective date

April 28, 2023 Boardof Directors meeting

Commonshares999

27

March 31, 2023

June 8, 2023

October 26, 2023
Board of Directors
meeting

Commonshares927

25

September 30, 2023

December 1, 2023

(2) Dividends for which the record date falls in the current period, but the effective date falls in the following period(Resolution)

Class ofsharesTotal cash
dividends(Million yen)

DividendsourceDividend pershare (Yen)Record date

Effective date

May 9, 2024 Boardof Directors meeting

Commonshares899

Retainedearnings

26

March 31, 2024

June 7, 2024

(Notes to Consolidated Statements of Cash Flows)*1. Relationship between cash and cash equivalents at end of year and account items listed in the consolidated balance sheets(Million yen)
For the fiscal year ended
March 31, 2023
Cash and deposits
Time deposits with deposit terms of
more than three months
Cash and cash equivalents

For the fiscal year ended
March 31, 2024

18,317

16,308(2,253)(5,341)

16,064

10,966(Lease transactions)(Lessee)
1. Finance lease transactions
Finance leases wherein ownership of the leased asset does not transfer to the lessee1) Description of leased assets
Property, plant and equipment
Research and development facility, tools, furniture and fixtures, and machinery, equipment and vehicles
2) Depreciation method of leased assets
As described in “(2) Depreciation method of significant depreciable assets under 4. Accounting policies” of (Material basis forthe preparation of consolidated financial statements).

－20－

2. Operating lease transactions
Future lease payments under non-cancelable operating lease transactions(Million yen)

As of March 31, 2023

As of March 31, 2024

Within one year

238

252

Over one year

171

241

Total

410

494

(Lessor)Finance lease transactions(1) Description of investments in leases
1) Current assets(Million yen)
As of March 31, 2023

As of March 31, 2024

Lease receivables

356

359

Interest income equivalents

(18)

(21)

Investments in leases

337

337

2) Investments and other assets(Million yen)
As of March 31, 2023

As of March 31, 2024

Lease receivables

814

867

Interest income equivalents

(27)

(35)

Investments in leases

786

832

－21－

(2) Scheduled amount of debt recovery after the closing date for lease receivables associated with investments in leases
1) Current assets(Million yen)
As of March 31, 2023
Due in one
year or lessDue after one
year throughtwo years

Due after two
years throughthree years

Due after three Due after four
years through years throughfour years
five years

Lease receivables

－

－

－

－

－

－

Investments in leases

356

－

－

－

－

－

Due after fiveyears(Million yen)
As of March 31, 2024
Due in one
year or lessDue after one
year throughtwo years

Due after two
years throughthree years

—

－

－

－

－

－

359

－

－

－

－

－

Lease receivables
Investments in leases

Due after three Due after four
years through years throughfour years
five years

Due after fiveyears2) Investments and other assets(Million yen)
As of March 31, 2023
Due in one
year or lessDue after one
year throughtwo years

Due after two
years throughthree years

Due after three Due after four
years through years throughfour years
five years

Lease receivables

－

—

－

－

－

－

Investments in leases

－

283

242

168

77

41

Due after fiveyears(Million yen)
As of March 31, 2024
Due in one
year or lessDue after one
year throughtwo years

Due after two
years throughthree years

Due after three Due after four
years through years throughfour years
five years

Lease receivables

－

－

－

－

－

－

Investments in leases

－

318

241

151

78

77

(Segment information)
Segment information
Fiscal year ended March 31, 2023 and fiscal year ended March 31, 2024
Omitted since the Group’s business is a single segment in the clinical diagnostics business.

－22－

Due after fiveyears(Per share information)(Yen)
For the fiscal year

For the fiscal year

ended March 31, 2023

ended March 31, 2024

Net assets per share

1,327.47

1,318.38

Basic earnings per share

155.17

71.69

Diluted earnings per share

153.8671.10(Note)The basis for the calculation of basic earnings per share and diluted earnings per share is as follows.
For the fiscal year

For the fiscal year

ended March 31, 2023

ended March 31, 2024

Basic earnings per share

Profit attributable to owners of parent (Million
yen)
Amount not attributable to common shareholders(Million yen)
Profit attributable to owners of parent relating tocommon shares (Million yen)
Average number of shares of common shares
outstanding during each fiscal year (Thousand
shares)

5,736

2,634

－

－

5,736

2,634

36,96736,744

－

－

314

306

(314)

(306)

Diluted earnings per share

Adjustment for profit attributable to owners ofparent (Million yen)
Increase in number of shares of common shares(Thousand shares)(Bonds with share acquisition rights included in theabove)
Overview of residual shares not included in
calculation of diluted earnings per share due tolack of dilutive effect－(Significant subsequent events)(Retirement of treasury shares)
At a meeting of the Board of Directors held on April 24, 2024, the Company resolved to retire treasury shares in accordance with
Article 178 of the Companies Act, and the Company has retired treasury shares as follows.

1. Reason for the retirement of treasury shares
To improve shareholder profits by reducing the total number of issued shares
2. Details of matters related to the retirement of treasury shares(1) Type of shares retired: common shares(2) Number of shares retired: 1,500,000 shares(Ratio to the total number of issued shares before retirement: 3.75%)(3) Date of retirement: April 26, 2024

－23－

4. Non-consolidated Financial Statements and Principal Notes(1) Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

17,917499

15,721804

Accounts receivable - trade
Investments in leases

10,619337

11,675337

Merchandise and finished goods
Work in process

4,728
1,917

4,172
2,001

Raw materials and supplies
Prepaid expenses

1,710
327

1,874
310

685
(6)

313
(7)

38,736

37,204

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings

22,71023,178

Accumulated depreciation(11,682)(12,328)

Buildings, net

11,028

10,849

1,745

1,654

(845)

(812)

Structures
Accumulated depreciation
Structures, net

900

842

6,728

7,201

Accumulated depreciation(5,428)(5,756)

Machinery and equipment, net

1,300

1,445

48
(38)

49
(41)

Machinery and equipment

VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

10

8

5,003
(3,933)

5,342(4,356)

1,070

985

1,928
325

1,928
281

Accumulated depreciation

(150)

(129)

Leased assets, net

174

152

Construction in progress

382

414

16,794

16,627

Patent right
Software

3
848

4
572

Other

19

24

Total intangible assets

871

601

Land
Leased assets

Total property, plant and equipment
Intangible assets－24－

(Millions of yen)
As of March 31, 2023
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries andassociates
Distressed receivables

As of March 31, 2024

586

597

0

72
0

1,316

1,316

30

20

Long-term prepaid expenses
Long-term time deposits

127
4,900

89
1,900

Life insurance funds
Prepaid pension costs

168
1,282

170
1,360

Deferred tax assets
Investments in leases

599
786

495
832

Other
Allowance for doubtful accounts

235
(34)

236
(23)

Total investments and other assets

10,001

7,070

27,667

24,29966,40461,503

Accounts payable - trade
Electronically recorded obligations - operating

4,715
2,933

4,678
2,759

Lease liabilities
Accounts payable - other

390
1,397

384
1,503

Accrued expenses
Income taxes payable

227
827

285
-

Refund liabilities
Contract liabilities

411
24

373
54

Deposits received
Provision for bonuses

67
766

126
674

Other

676

505

12,43911,345

3,000
919

3,000
951

Asset retirement obligations
Other

34
342

35
342

Total non-current liabilities

4,296

4,329

16,736

15,675

Total non-current assets
Total assets
Liabilities
Current liabilities

Total current liabilities
Non-current liabilities
Bonds payable
Lease liabilities

Total liabilities－25－

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Net assets
Shareholders' equity
Share capital
Capital surplus

6,897

6,897

Legal capital surplus
Other capital surplus

7,892
183

7,892
-

Total capital surplus

8,076

7,892

338

338

Reserve for tax purpose reduction entry
General reserve

58
4,330

54
4,330

Retained earnings brought forward

32,65431,608Retained earnings
Legal retained earnings
Other retained earnings

37,38136,331

Treasury shares

Total retained earnings(3,095)(5,686)

Total shareholders' equity

49,25945,434

Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments

28

35

28

35

Share acquisition rights

380

358

49,66745,82866,40461,503

Total net assets
Total liabilities and net assets－26－

(2) Non-consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2023
Net sales
Net sales of finished goods

For the fiscal year
ended March 31, 2024

22,13318,459Net sales of goods

21,06221,503

Total net sales

43,19539,962

4,654

4,728

7,954

8,116

Cost of purchased goods
Ending inventory of merchandise and finished goods

15,012
4,728

14,752
4,172

Total cost of sales

Cost of sales
Beginning inventory of merchandise and finished
goods
Cost of products manufactured

22,892

23,425Gross profit

20,303

16,536

Selling, general and administrative expenses

12,788

13,114

Operating profit

7,514

3,422

Interest income
Dividend income

9
3

0
4

Compensation income for damage
Compensation income

38
8

5

Outsourcing service income
Foreign exchange gains

9
26

10
45

Subsidy income
Other

10
35

155
30

Total non-operating income

141

253

Non-operating income

Non-operating expenses
Interest expenses

34Interest expenses on bonds
Commission for purchase of treasury shares

12
-

12
70

Commitment fees
Loss on redemption of investment securities

2
13

3
-

Compensation expenses
Other

9
0

3

Total non-operating expenses

42

93

7,613

3,581

Gain on sale of non-current assets
Gain on sale of investment securities

24
56

0
-

Total extraordinary income

81

0

57

65

57

65

Profit before income taxes

7,637

3,516

Income taxes - current

1,758

767

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale and retirement of non-current assets
Total extraordinary losses

Income taxes - deferred

97

100

Total income taxes

1,855

868

Profit

5,781

2,648

－27－

(3) Non-consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Other retained earnings
Share capital Legal capital Other capital Legal retained Reserve for
Retainedtax purpose
Generalearnings
surplussurplusearnings
reduction
reservebrought
entry
forwardBalance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

6,897

7,892

108

338

66

(7)

28,8987(2,033)
5,781

75

-

-

75

-

(7)

-

3,756

6,897

7,892

183

338

58

4,330

32,654

Valuation andtranslation
adjustments
Valuation
Total
difference onshareholders'available-forequity
sale securities

ShareacquisitionrightsTotal net
assetsShareholders' equity

TreasurysharesBalance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period4,330(3,126)45,40533

316

45,755--(2,033)(2,033)

5,781

5,781

(0)

(0)

(0)

30

105

105

-

(5)

63

58

30

3,854

(5)

63

3,912

(3,095)49,25928

380

49,667－28－

For the fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Other retained earnings
Share capital Legal capital Other capital Legal retained Reserve for
Retainedtax purpose
Generalearnings
surplussurplusearnings
reduction
reservebrought
entry
forwardBalance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

6,897

7,892

183

338

58

(3)

32,654

3(1,927)
2,648

58
(242)

(1,771)

-

-

(183)

-

(3)

-

(1,046)

6,897

7,892

-

338

54

4,330

31,608Valuation andtranslation
adjustments
Valuation
Total
difference onshareholders'available-forequity
sale securities

ShareacquisitionrightsTotal net
assetsShareholders' equity

TreasurysharesBalance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period4,330(3,095)49,25928

380

49,667--(1,927)(1,927)

2,648

2,648

(4,636)(4,636)(4,636)

32

91

91

2,013

-

7

(22)

(14)

(2,590)(3,824)7(22)(3,839)(5,686)45,43435358

45,828－29－

(4) Notes to Non-consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Significant accounting policies)
1. Valuation standards and methods for Significant Securities(1) Held-to-maturity debt securities
Stated at amortized cost (straight-line method)(2) Shares of subsidiary
Cost method by the moving-average method(3) Available-for-sale securities
Securities other than shares, etc., which do not have a market priceMarket value method(The valuation difference is directly included in net assets, and cost of sales is determined by the moving-average method.)
Shares, etc., which do not have a market pricePrincipally cost method by the moving-average method
2. Valuation standards and methods for derivative financial instruments
Market value method
3. Valuation standards and methods for inventories(1) Merchandise and finished goods, raw materials, and work in process
Cost method by the moving-average method (carrying amount is written down due to decreased profitability) is adopted.
(2) Supplies
Cost method by the last purchase price method (carrying amount is written down due to decreased profitability) is adopted.
4. Depreciation method of non-current assets(1) Property, plant and equipment (excluding leased assets)
Declining-balance method
However, the straight-line method is adopted for buildings purchased on or after April 1, 1998 (excluding facilities attached tobuildings), and for facilities attached to buildings and structures purchased on or after April 1, 2016.
Major useful lives are as follows:
Buildings

15-38 years

Structures

7-40 years

Machinery and equipment

8 years

Vehicles4-6 years

Tools, furniture and fixtures

2-15 years(2) Intangible assets (excluding leased assets)
Straight-line method
For internal use software, the straight-line method based on amortization over the internally estimated useful lives (5 years) is
adopted.
(3) Leased assets
Leased assets are depreciated over the lease terms as useful lives using the straight-line method without any residual value.

－30－

5. Accounting standards for significant reserves and allowances(1) Allowance for doubtful accounts
In order to prepare for possible credit losses on trade receivables, etc., the estimated amount of non-recoverable receivables
based on the historical loss rate for general receivables and specific collectability for specific doubtful receivables are recorded.
(2) Provision for bonuses
In order to prepare for payments of bonuses to the employees, the estimated payable amount to be used in the future attributable
to the current fiscal year is recorded as provision for bonuses.
(3) Provision for retirement benefits
In order to prepare for employees’ retirement benefits, provision for retirement benefits is recorded based on the retirement
benefit obligations and estimated plan assets as of the current fiscal year-end.
1) Period attribution method for estimated retirement benefits
In calculating retirement benefit obligations, the method of attributing the estimated amount of retirement benefits to the periods
up to the end of the current fiscal year is based on the benefit formula basis.
2) Accounting method for actuarial difference and past service cost
Past service cost is expensed using the straight-line method over a period of definite years (3 years) within the employees’
average remaining service years at the time when it is incurred.
Actuarial difference is expensed at the amount divided proportionally using the straight-line method over a period of definite
years (12 years) within the employees’ average remaining service years in each fiscal year when it is incurred, commencing fromthe fiscal year following the fiscal year in which the difference is incurred.
6. Revenue and expense recognition standards(1) Sales of merchandise and finished goods
Sales of merchandise and finished goods include the manufacture and sale of clinical diagnostic reagents and clinical diagnostic
equipment. The Company principally recognizes revenue from sales of merchandise and finished goods when making deliveryof the goods to a customer as it satisfies a performance obligation by transferring control of the goods to a customer based onreceipt of the goods. For clinical diagnostic equipment which requires installation at the time of sale, the Company recognizes
revenue at inspection of installed equipment as it satisfies a performance obligation by transferring control of the goods to acustomer based on inspection by a customer.
(2) Royalty revenue
Royalty revenue includes upfront payment based on license agreement etc., milestone revenues, and running royalty calculated
based on net sales etc. For upfront payment, the Company recognizes revenue at customers’ receipt of the right which theCompany promised to transfer to a customer based on the contract. For milestone revenues, the Company recognizes revenue atachievement of the milestone which was defined in the contract. For running royalty calculated based on net sales etc., theCompany recognizes revenue when sales or usage occur, or it satisfies a performance obligation which sales-based or usagebased royalty is allocated, whichever is later.

－31－

7. Translation of significant foreign currency denominated assets and liabilities into Japanese yen
Foreign currency denominated monetary receivables and payables are translated into Japanese yen using the spot exchange rate on
the closing date and the translation difference is charged or credited to income.
8. Hedge accounting method(1) Hedge accounting method
The appropriation procedure is adopted to foreign exchange fluctuation risk hedging that satisfy the relevant requirements.
(2) Hedging instruments and hedged items, hedging policy
The risks of foreign exchange fluctuation are hedged in accordance with the Company’s rules.
Hedging instruments and hedged items where hedge accounting was applied for the consolidated fiscal year under review are
as follows.
Hedging instruments: Forward exchange contracts
Hedged items:

Foreign currency denominated accounts payable, foreign currency denominated accounts payable other(3) Assessment of hedge effectivenessFor forward exchange contracts, hedged items with the same date and amount and denominated in the same currency areallocated to each account payable, accounts payable – other. Therefore, the correlation by foreign exchange fluctuation thereafteris ensured completely, and the assessment of hedge effectiveness is omitted.
9. Accounting policies for retirement benefits
The accounting methods of unrecognized actuarial gain and loss and unrecognized past service cost for retirement benefits differ
from those of the consolidated financial statements.
(Notes to Non-consolidated Balance Sheets)*1. Regarding accounting policies for notes maturing on the last day of the fiscal year, although the last day of the fiscal year underreview was a holiday for financial institutions, the notes are treated as if the settlement was made on the maturity date.
Notes maturing on the last day of the fiscal year under review are as follows.
(Million yen)
As of March 31, 2023
Notes
2.

As of March 31, 2024-

17

Overdraft contract and commitment line are concluded for efficient procurement of working capital. Balance of unexecuted loans
based on these contracts are as follows.
(Million yen)
As of March 31, 2023
Total of overdraft maximum amount andcommitment lines
Outstanding borrowings
Difference－32－

As of March 31, 2024
5,400

4,600

5,400

4,600

(Notes to Non-consolidated Statements of Income)*1. Approximate percentages of expenses belonging to selling expenses are 45% for the previous fiscal year, 45% for the fiscal year
under review, and approximate percentages of expenses belonging to general and administrative expenses are 55% for the previous
fiscal year, 55% for the fiscal year under review.
The main expense items and amounts of selling, general and administrative expenses are as follows.
(Million yen)
For the fiscal year

For the fiscal year

ended March 31, 2023

ended March 31, 2024

Salaries

2,203

2,464

Provision for bonuses

400

353

Retirement benefit expenses

76

112

Legal welfare expenses

581

567

Travel and transportation expenses

476

535

Packaging and transportation expenses

822

804

Research and development expenses

4,011

3,916

412

464

21

(1)

Depreciation
Provision of allowance for doubtful
accounts*2. Main losses on sales and retirement of non-current assets are as follows.

(Million yen)
For the fiscal year

For the fiscal year

ended March 31, 2023

ended March 31, 2024

Buildings

014Structures

00

Machinery and equipment

90Vehicles00

Tools, furniture and fixtures

16

0

Software-3

Dismantlement cost

30

46

Total

57

65

(Significant subsequent events)(Retirement of treasury shares)
At a meeting of the Board of Directors held on April 24, 2024, the Company resolved to retire treasury shares in accordance with
Article 178 of the Companies Act, and the Company has retired treasury shares as follows.

1. Reason for the retirement of treasury shares
To improve shareholder profits by reducing the total number of issued shares
2. Details of matters related to the retirement of treasury shares(1) Type of shares retired: common shares(2) Number of shares retired: 1,500,000 shares(Ratio to the total number of issued shares before retirement: 3.75%)(3) Date of retirement: April 26, 2024

－33－

5. Others(1) Changes in Officers
1) Changes in CEO
Not applicable
2) Changes in Other Officers
Not applicable(2) Sales
Sales are described by breaking down sales by classes and types of products since the Group’s business is a single segment.
Sales performance
Sales performance for the consolidated fiscal year under review described by product class and type is as follows.
(Million yen)
Name of class and type of productFor the fiscal year ended

Change from the previous

March 31, 2024

corresponding period (%)

Microbiological testing reagents

4,312

109.5

Urinalysis reagents

4,401

106.2

Immunological and serological reagents

21,710

104.8

575

97.5

1,961

90.6

Other category

7,090

60.5

Total

40,052

92.6

Clinical chemistry reagents
Equipment and culture medium for foodand environment related category－34－