Consolidated Financial Highlights
for the First Quarter of FY2024(From April 1, 2024 to June 30, 2024)

1) Financial Results
2） Highlights
3） Breakdown of Operating Income
4） Domestic Sales
5） Overseas Sales
6） Sales by Product Category[Ref] Breakdown7） Topics

8） Financial Condition
9） Cash Flows
10) Capital Investments and R&D Costs
11) Forecast for FY2024 1H
12) Reason for the Revision
13) Forecast for FY2024[Ref] Sales Forecast by Product Category/Effect of Exchange Rate

(Ticker Code: 6849)
August 2, 2024

1) Consolidated Financial Results for the 1st Quarter of FY2024
FY2023
1Q

FY2024
1Q

YoY (%)Net Sales

48,72846,227-5.1

Domestic Sales

30,15429,493-2.2

Overseas Sales

18,574

16,734-9.9

Gross Profit

24,352

21,857-10.2(Gross Profit Margin)

50.0%

47.3%

Operating Income

2,205-1,248(Operating Income Margin)

4.5%

―

Ordinary Income

5,794

1,674-71.1

Income Attributable toOwners of Parent

3,787766-79.8

Average Exchange Rate
1 US Dollar
1 EURO(2023/6)
135.4 yen
147.9 yen

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved―(Amounts of less than ¥1 million are rounded down)-21% on a local currency basis(-9% on a local currency basis excluding impact ofchange in fiscal term of Defibtech in FY2023 1Q* )In-housesales ratio:

FY2023 1Q

FY2024 1Q

73.3%→ 68.9%

SG&A Ratio: 45.5%→ 50.0%Foreign exchange gains:¥3,532 mil → ¥2,741 mil(2024/6) *In the previous fiscal year, Defibtech, LLC changed its fiscal term from end on
31 to end on March 31, according to the reorganization of U.S.
154.7 yen December
subsidiaries. In FY2023 1Q ended June 30, 2023, Nihon Kohden consolidated
166.7 yen the 6 months of Defibtech’s operating results from January 1, 2023 to June 30, 2023.
12) Highlights of FY2024 1Q

Net Sales : -5.1%• Japan：Sales decreased due to a reactionary decline in sales of IT systems compared tothe strong growth due to large orders in FY2023 1Q, while sales of consumables andservices increased.
• International：Overseas sales decreased, due to the impact of a change in the fiscal termof Defibtech, LLC according to the reorganization of subsidiaries in the U.S. in FY2023
1Q. Another reason was that sales in Asia & Other decreased, mainly in China.

Operating Loss : ¥1,248 million (Operating income of ¥2,205 million in FY2023 1Q)• Sales decreased and gross profit margin was lower, because domestic gross profit
margin of in-house products such as IT systems decreased and inventory write-down of adiscontinued model was recorded.

Ordinary Income : -71.1%• Ordinary income was recorded, reflecting foreign exchange gains.
© Copyright NIHON KOHDEN CORPORATION All Rights Reserved23) Breakdown of Operating Income(Amounts of less than ¥1 million are rounded down)

Main reasons for deteriorationin gross margin

FY2023
1Q
FY2021
2,205
30,992Currency
effect+361

Deteriorationin gross margin-2,152
Decrease ingross profit
from sales
decrease-1,706
Impact of change
in fiscal term of Defibtech
was approx. 40%

・Deterioration in domestic gross margin ofin-house products such as IT systems-1.1pt(lower selling prices)
・Inventory write-down of
a discontinued model-1.0pt・Increase in cost (prices of components
and purchased products)-0.5pt

Items of increase/decreasein SG&A expenses*・Salaries
・Legal welfare expenses
・Provision for bonuses+¥0.27 bil+¥0.17 bil+¥0.11 bilDecreasein SG&A*+44
FY2024 1Q-1,248*Decrease in SG&A indicates the amount as a factor of increase/decrease of operating income excluding the currency effect.
Items of increase/decrease in SG&A expenses indicate major components of increased/decreased SG&A expenses on a yen basis.
© Copyright NIHON KOHDEN CORPORATION All Rights Reserved© Copyright NIHON KOHDEN CORPORATION All Rights Reserved34) Domestic Sales
Sales by Market

Sales by Product Category(¥100 million)

300

301
40250

40294
40

Other42Clinics

77

150

10082825055

51

FY2023 1Q

FY2024 1Q

FY2023
1Q

FY2024
YoY (%)
1Q

Physiological Measuring Equipment

8,262

7,760-6.1

Patient Monitors

9,818

9,038-7.9

Privatehospitals

Treatment Equipment

6,048

6,641

9.8

Publichospitals

Other Medical Equipment

6,024

6,051

0.5

Total Sales

30,15429,493-2.2

20083(Sales, millions of yen)

Universities

0[ Markets ] Sales in the university and private hospital markets decreased and sales in the public hospital market remained flat. Sales in the clinic market increased
favorably.
[ Products ] Physiological Measuring Equipment: Sales of diagnostic information systems decreased due to a reactionary decline compared to the strong growth inFY2023 1Q. Sales of ECGs and EEGs also decreased. Sales of polygraphs for cath lab increased.
Patient Monitors: Sales of clinical information systems decreased due to a reactionary decline compared to the strong growth in FY2023 1Q. Sales oftransmitters also decreased. Sales of telemetry systems increased favorably, supported by the launch of new products.
Treatment Equipment: Sales of AEDs and ventilators achieved double-digit growth. Sales of defibrillators and pacemakers / ICDs decreased.
Other Medical Equipment: Sales of imaging systems were double-digit growth. Sales of hematology instruments and locally purchased products decreased.
© Copyright NIHON KOHDEN CORPORATION All Rights Reserved45) Overseas Sales

Geographic Segments(¥100 million): YoY -38%
(on a local currency basis: -44%): YoY -9%(on a local currency basis: -20%)

Percentage of overseas sales
to consolidated sales

FY20231Q
38.1%

FY2024
1Q
36.2%

Sales by Product Category(Sales, millions of yen)Physiological Measuring Equipment

FY2023 FY2024
YoY (%)
1Q
1Q
2,493-3.4
2,409: YoY +30%
(on a local currency basis: +16%)

Patient Monitors

7,809

8,275

6.0

Treatment Equipment

6,664

4,193

-37.1

: YoY +6%
(on a local currency basis: -8%)

Other Medical Equipment

1,607

1,855

15.4

Total Sales

18,574

16,734-9.9-21% on a local currency basis(-9% on a local currency basis excluding impact of change in fiscal term of Defibtech in FY2023 1Q)[ Region ]North America: Sales of patient monitors, ventilators, and neurology products increased favorably, while sales of AEDs decreased.
Latin America: Sales achieved double-digit growth, mainly in Brazil and Mexico. Sales in all product categories increased.
Europe: Sales decreased, as sales of AEDs decreased mainly in the Netherlands and the U.K., while sales in Germany increased.
Asia & Other: Sales decreased, as sales in China and the Middle East decreased compared to the strong growth in FY2023 1Q, as well as lower sales inSoutheast Asia.
[ Products ] Physiological Measuring Equipment: Sales of ECGs decreased compared to the strong growth in China in FY2023 1Q. Sales of EEGs decreased in China,
compared to favorable sales in North America, Europe, and Latin America.
Patient Monitors: Sales in North America, Europe, and Latin America achieved double-digit growth. Sales in Asia & Other decreased compared to the strong
growth in China and the Middle East in FY2023 1Q.
Treatment Equipment: Sales of AEDs decreased due to the impact of change in fiscal term of Defibtech, LLC. Sales of ventilators increased significantly,
especially for a mask-type ventilator in North America.
Other Medical Equipment: Sales of hematology instruments and reagents achieved double-digit growth in Europe and Latin America.
© Copyright NIHON KOHDEN CORPORATION All Rights Reserved56) Sales by Product Category(Sales, millions of yen)

FY2023
1Q

FY2024
YoY (%)
1Q

Physiological Measuring Equipment

10,756

10,170-5.4

Patient Monitors

17,627

17,314-1.8

Treatment Equipment

12,713

10,835-14.8

Other Medical Equipment

7,631

7,906

3.6

Total Sales

48,72846,227-5.1(Reference)

Medical Dervices

24,15021,331-11.7

Consumables and Services

24,57824,895

1.3© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

Sales composition
by product category(FY2023 1Q  FY2024 1Q)
Physiological
Measuring
Equipment
22.1 ⇒ 22.0%

Other MedicalEquipment
15.6 ⇒ 17.1%
Consumables
and Services
50.4 ⇒ 53.9%
Treatment
Equipment
26.1 ⇒ 23.4%

Sales¥46.2billion
Medical Devices
49.6 ⇒ 46.1%

Patient Monitors
36.2 ⇒ 37.5%

6

(Ref.) Breakdown of Sales by Product Category(Billions of yen)Physiological Measuring Equipment

FY2023

FY2024

1Q

1Q

Treatment Equipment

FY2023

FY2024

1Q

1Q

Electroencephalographs

2.1

2.1 Defibrillators (for Hospital and Ambulance)

1.6

1.5

Electrocardiographs

1.7

1.3 AEDs (Automated External Defibrillator)

7.8

5.2

Polygraphs for Cath Lab

4.2

4.3 Pacemakers / ICDs

0.6

0.6

Diagnostic Information Systems

1.4

1.0 Ventilators

0.6

1.4

Other Physiological MeasuringEquipment *1.1

1.4 Other Treatment Equipment

1.8

1.9

*Includes products of other companies.

FY2023

FY2024

1Q

1Q

Patient Monitors

17.6

17.3

Hematology Instruments

2.6

2.9

Clinical Information Systems

1.3

0.9

Imaging Systems and Others *4.9

5.0

Patient Monitors

Other Medical Equipment

FY2023

FY2024

1Q

1Q*Includes consumables, installation and maintenance services which are not part ofother categories.
© Copyright NIHON KOHDEN CORPORATION All Rights Reserved77) Topics
Announced New Vendor-Partnership with Houston Methodist• Major IDN* in Texas, the U.S., which owns eight hospitals with approx. 2,700 operating beds
In FY2024 1Q

In FY2023 3Q

Signed a five-year contract

Announced our partnership, preparing for delivery to affiliated hospitals*IDN: Integrated Delivery Network.

New products to be launched in FY2024
Patient Monitoring Business Treatment Equipment Business

Solution Business（ITS＋DHS）

Sedation and neuromuscular status

Central monitor
CNS-2101
Launched in Japan in FY2021 3Q
Launched in the U.S. in FY2023 3Q
Planned to launch in Europeand emerging markets in FY2024

Mid-to low-end
bedside monitorsPlanned to launch in Japan, Europe,and emerging markets in FY2024

Ventilator
NKV-440

U.S. production

Patient data

U.S. R&D
Operationalstatus

Launched in some emerging
countries in FY2022 4Q
Planned to launchin the U.S. in FY2024

Drug dosing

Defibrillator for hospital
Planned to launch in Japanand emerging markets in FY2024

Flow Control

Remote ICU solution
RemoteSense U.S. R&D
Launched in the U.S.
in FY2024 1Q
Planned to add functions
in FY2024 2Q

Dashboard software formonitoring patient condition
Planned to launch in Japan in FY2024* The actual launch dates varied in accordance with the examination period for regulatory approval in each country.
8© Copyright NIHON KOHDEN CORPORATION All Rights Reserved8) Financial Condition(Amounts of less than ¥1 million are rounded down)

FY2023Current Assets
Inventories
Property, Plant & Equipment
Intangible Assets
Investments & Other Assets
Total Assets
Inventory Turnover

184,333
57,78725,418
4,852
18,628233,233

FY2024FY2024
ChangeFY2023
Change1Q
1Q
172,437 -11,896 Current Liabilities
42,338 -7,563
49,90159,305 1,517 Interest-bearing Debt
584
579
426,602 1,183 Non-current Liabilities
2,238
2,249-10
5,161
309 Net Assets
181,082 179,211 -1,871
19,586
958
223,787 -9,446 Total Liabilities & Net Assets 233,233 223,787 -9,446

6.3 months 6.4 months[ Reasons for the decrease of current assets ]Notes and accounts receivable decreased by ¥12 bil.
[ Reasons for the increase of Property, Plant & Equipment ]Construction cost of
new plant in Tsurugashima City was ¥1.3 bil.

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

Equity Ratio

77.6%80.1%[ Cancellation of treasury shares ]Cancellation of 5.5 mil shares on July 19, 2024
As of end of July 2024:
Total number of shares issued after cancellation:
170 mil shares
Number of treasury stock: 3.13 mil shares(stockholding ratio: 1.8%)99) Cash FlowsFY2023
1Q
Ⅰ. Cash flows from operating
activities
Ⅱ. Cash flows from investing
activities
Free cash flows
Ⅲ. Cash flows from financing
activities
Effect of exchange rate change
on cash and cash equivalents
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalentsat end of period

FY2024
Change1Q

4,991-544-5,536-1,077-1,115-38

3,914-1,660-5,574-3,476-2,581894

1,473

1,157-315

1,911-3,083-4,99545,89946,794894(Amounts of less than ¥1 million are rounded down)
FY2023 1Q FY2024 1Q Change
Income before income taxes
5,794
1,669
-4,124
Decrease (increase) in accounts receivable
9,625
12,623+2,997
Decrease (increase) in inventories-2,281
82+2,363
Income taxes paid
-2,725-5,360-2,634FY2023 1Q FY2024 1Q Change
Cash dividends paid
-3,396-2,565+830[ Planned to acquire own shares ]Acquisition period： From August 5, 2024, to March 31, 2025
Total amount of share acquisition costs： Up to ¥10 billion© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

1010) Capital Investments and R&D Costs(Millions of yen)

FY2023
1Q

FY20241Q

FY2023
ActualChange

FY2024
Plan

1,067

2,222

1,154

4,978

10,300Depreciation

832

933

101

3,704

4,500

R&D Costs

1,559

1,602

43

6,996

7,500

Capital Investments

 FY2024 capital investments planMolds for new products, measuring equipment and jigs, products for demonstration, and production equipment
Introduction of PLM/MES* systems
PLM/MES:
Capital Investments: approx. ¥3.0 bil

FY2022: ¥0.3 bil, FY2023: ¥0.5 bil
FY2024: ¥1.1 bil, FY2025: ¥1.1 bil

Establishment of new plant in Tsurugashima City FY2022: ¥2.3 bil
Total investments: approx. ¥11.0 bil(Acquisition of the site)~FY2024: ¥4.1 bil, FY2025~: ¥4.6 bil(Building and facilities)

Planned to start operation in FY2025
Construction: Started in July 2024 andbe completed at end of 2025
Operation: Planned to start in 2026

*PLM: Product Life-cycle Management, MES: Manufacturing Execution System© Copyright NIHON KOHDEN CORPORATION All Rights Reserved*Image1111） Forecast for FY2024 1H(Billions of yen)

FY2024 1H Forecast

FY2023 1H
Original forecast
announced May 13（A）

ActualRevised forecast
announced Aug 2（B）

Difference（B）‐（A）

YoY (%)Net Sales

103.5

104.0

102.0

-2.0

-1.5

Domestic Sales

65.7

――――

Overseas Sales
Gross Profit

37.8
52.0―
―――――――(Gross Profit Margin)

50.2%

Operating Income

7.4

7.0

3.0-4.0-60.0(Operating Income Margin)

7.2%

6.7%

2.9%

Ordinary Income

12.5

7.0

3.0-4.0-76.1

Income Attributable toOwners of Parent

7.9

4.5

1.5

-3.0

-81.2

*The assumed exchange rates in FY2024 2Q are 150 yen to the U.S. dollar and 160 yen to the euro.

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved1212） Reason for the Revision
Domestic
Sales• Sales are expected to show a low-single-digit decline.
• Each medical institution is facing difficulty in securing medical professionals,
responding to work style reforms for medical staff and the medical treatment feerevision.
• Budget executions in the university and public hospital markets will be moreconcentrated in FY2024 2H than its expectations. There is also a cautious
stance on capital expenditure by private hospitals.

OverseasSales• Sales are expected to show a low-single-digit decline on a comparable basis,
excluding the currency effect and the impact of a change in the fiscal term ofDefibtech, LLC.
• Sales in China will continue to decrease in FY2024 2Q and business deals andbudget executions in the Middle East and Southeast Asia will be more concentrated
in FY2024 2H than its expectations.
• In North America, which is a market that the Company is focusing on, sales of patientmonitors, ventilators, and neurology products are expected to increase favorably.

Net Sales[ down ¥2.0 bil
from previousforecast ]Operating Income
Ordinary Income• In FY2024 1H, gross profit margin will be less than 50%.
• In FY2024 2Q, income is expected to be lower than its previous forecasts, as sales will be[ down ¥4.0 bil ]Income Attributable tolower than expected. The Company aims at securing gross profit margin of 50% by focusing
Owners of Parent
on selling its in-house products.
[ down ¥3.0 bil ]1313) Forecast for FY2024
FY2023
ActualNet Sales

221,986

FY2024
Forecast
229,000

YoY
(％)
3.2

Domestic Sales

142,370

147,000

3.3

Overseas Sales
Gross Profit

79,615111,346

82,000118,000

3.06.0(Gross Profit Margin)

50.2%

51.5%

Operating Income

19,591

23,000

8.8%

10.0%

Ordinary Income

25,58923,000-10.1Income Attributable toOwners of Parent

17,026

16,000-6.0

Percentage of Overseas Sales

35.9%

35.8%

(Operating Income Margin)(Amounts of less than ¥1 million are rounded down)

17.4+5% on a local currency basis(+7% on a local currency basis excluding impact
of change in fiscal term of Defibtech in FY2023)

Breakdown of overseas sales by region
YoY(%)

FY2023
ActualFY2024
Forecast

North America

37,058

38,1002.8

Latin America

6,039

5,200-13.9

Europe13,104

12,400-5.4

Asia & Other

23,413

26,300

12.3

Total

79,61582,000

3.0

The Company reaffirms its forecast for FY2024 unchanged as both domestic and overseas sales will be more concentrated in
FY2024 2H than its expectations. The Company will also take further measures to reform the profit structure of the entire Group.
© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

14

(Ref.) Consolidated Forecast for FY2024 by Product Category/
Effect of Exchange Rates(Amounts of less than ¥1 million are rounded down)
FY2023
ActualFY2024
Composition
Forecast ratio (%)

YoY(%)

Physiological Measuring Equipment

46,51747,900

20.9

3.0

Patient Monitors

84,13087,20038.1

3.6

Treatment Equipment

51,66553,20023.2

3.0

Other Medical Equipment

39,67340,700

17.8

2.6

Total

221,986

229,000 100.0

3.2

Medical Dervices

115,638

117,900

51.5

2.0

Consumables and Services

106,347

111,100

48.5

4.5(Reference)

Average Exchange Rate

1 US Dollar
1 EUROFY2023
Actual143.9 yen
156.8 yen

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

Estimated Exchange Rate Fluctuations for Full Fiscal YearFY2024
Forecast
140 yen
150 yenOperatingIncome
0.40 bil yen 0.12 bil yen0.06 bil yen 0.03 bil yen
Sales

US Dollar
EURO15

Disclaimer:
The contents of this document are based on the Company’s
best judgments at the time it was prepared and do not constitute aguarantee or promise that the Company will achieve its numerical targets or
implement the measures described therein.
Information on products (including products under development) in thisdocument is not intended to make any advertisement or promotion.
These documents have been translated from Japanese originals forreference purposes only. In the event of any discrepancy between thesetranslated documents and the Japanese originals, the originals shall prevail.