These documents have been translated from Japanese originals for reference purposes only. In the event ofany discrepancy between these translated documents and the Japanese originals, the originals shall prevail.

August 2, 2024

Consolidated Financial Results for the 1st Quarter of the Fiscal YearEnding March 31, 2025 (Japan GAAP)NIHON KOHDEN CORPORATION (6849)
Stock Exchange Listing:
Head Office:Representative:
Contact:

Prime Market, Tokyo Stock Exchange
Tokyo
Hirokazu Ogino, Representative Director, President and Chief Executive Officer
Fumio Izumida, Operating Officer, General Manager of Corporate Strategy Division(URL https://www.nihonkohden.co.jp)
Phone: +81 / 3 - 5996 - 8003
(Amounts are rounded down to the nearest million yen)st

1. Consolidated Financial Highlights for the 1 Quarter of FY2024 (From April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results
Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.
Net sales

FY2024 1Q (3 months)
FY2023 1Q (3 months)

Note: Comprehensive income:

FY2024 1Q (3 months)

Operating income

Income attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

46,227
48,728-5.1
9.8-1,248
2,205

―
21.3

1,674
5,794

-71.1
5.7

766
3,787

-79.8
2.9

FY2024 1Q: 729 million yen (-86.6%)
Net income per share
Net income per share- Basic- Diluted
Yen

Yen

4.57
22.51

―

FY2023 1Q: 5,432 million yen (6.0%)

FY2023 1Q (3 months)―
Note: Effective July 1, 2024, each share of common stock was split into two shares. Net income per share is calculated on the assumption that thestock split was implemented at the beginning of the fiscal year ended March 31, 2024.

(2) Consolidated Financial Conditions
Total assets
Millions of yen

As of June 30, 2024
As of March 31, 2024

223,787
233,233

Reference: Equity Capital:

Net assets

Equity ratio

Millions of yen%

179,211
181,082
FY2024 1Q: 179,211 million yen

Net assets per share
Yen

80.1
77.6
FY2023 : 181,082 million yen

1,068.05
1,079.20

Note: Effective July 1, 2024, each share of common stock was split into two shares. Net assets per share is calculated on the assumption that thestock split was implemented at the beginning of the fiscal year ended March 31, 2024.

2. Dividends
Dividends per share
Interim(Second quarter)

First quarter

Third quarter

Year-end

Full-year

yen

yen

yen

yen

yen

FY2023

―

30.00

―

31.00

61.00

FY2024―FY2024 (Forecast)
15.00
―
16.00
31.00
Note: Revise of dividends forecast: None
Note: Effective July 1, 2024, each share of common stock was split into two shares. For the fiscal year ended March 31, 2024, the actual dividend
amount before the stock split is shown. For the fiscal year ending March 31, 2025 (forecast), the amount after the stock split is shown. Annual
dividends per share for the fiscal year ending March 31, 2025 (forecast) without taking the stock split into account would be 62.00 yen.

－1－

3. Consolidated forecast for FY2024 (From April 1, 2024 to March 31, 2025)
Net sales

Income attributableto owners of parent% Millions of yen%

Operating income Ordinary income

Net income pershare - Basic

Millions of yen%

Millions of yen%

Millions of yen

102,000

-1.4

3,000

-59.9

3,000

-76.0

1,500

-81.2

8.94

229,000
3.2
Note: Revise of consolidated forecast: Yes

23,00017.4

23,000-10.1

16,000

-6.0

95.36

First half
Full year

Yen

Note: Effective July 1, 2024, each share of common stock was split into two shares. Basic earnings per share for the fiscal year ending March 31,
2025 are based on the amount taking into consideration the stock split. Basic earnings per share for the fiscal year ending March 31, 2025 without
taking the stock split into account would be 17.88 yen for the first half and 190.71 yen for full year.

* Notes(1) Significant changes in scope of consolidation during the period: Yes
Newly included:

1 company (Nihon Kohden Vietnam Co., Ltd.)

Excluded:― companies (―)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
Note: For details, please refer to "2. Consolidated Financial Statements and Primary Notes (4) Notes to Consolidated Financial
Statements (Applying of Specific Accounting of the Consolidated Quarterly Financial Statements)" on page 10 of the attachment.
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period(including treasury shares)(ii) Number of treasury shares at the end of the period(iii) Average number of shares outstanding during the period

FY2024 1Q

176,461,960

shares

FY2023

176,461,960

shares

FY2024 1Q

8,668,780

shares

FY20238,668,532

shares

FY2024 1Q

167,793,252

shares

FY2023 1Q

168,252,715

sharesNote: Effective July 1, 2024, each share of common stock was split into two shares. "Total number of issued shares at the end of the period","Number of treasury shares at the end of the period", and "Average number of shares outstanding during the period" are calculated on theassumption that the stock split was implemented at the beginning of the fiscal year ended March 31, 2024.

* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants oran audit firm: None
* In domestic sales of the Nihon Kohden group, sales to public medical institutions (which include national hospitals, national
universities, public agencies, and municipal hospitals) account for a relatively high percentage of total sales. Therefore, the bulk of orders
tend to be concentrated in September and March due to these hospitals' budget executions. In particular, sales and income are highly
concentrated in the fourth quarter of the fiscal year.
* Earnings forecasts and other forward-looking statements in this release are based on information currently available and certain
assumptions that the Company believes are reasonable. Therefore, they do not constitute a guarantee that they will be realized. Actual
results may differ from such estimates due to unforeseen circumstances.
* Review of the accompanying quarterly consolidated financial statements by a certified public accountant or auditing firm
The Company will disclose the quarterly financial statements with the review report after the completion of the review.
Scheduled disclosure date: August 9, 2024

－2－

Content of Supplementary Materials
1. Qualitative Information on Financial Results for the Period(1) Operating Results Analysis…........................ 4…........................ 4(2) Financial Conditions Analysis…........................ 5(3) Consolidated Financial Forecast for FY2024…........................ 5

2. Consolidated Financial Statements and Primary Notes…........................ 6(1) Consolidated Balance Sheets…........................ 6(2) Consolidated Statements of Income and Comprehensive Income…........................ 7(3) Consolidated Statements of Cash Flows…...................... 9(4) Notes to the Consolidated Financial Statements…...................... 10(Assumption of Going Concern)…...................... 10(Significant Changes in Shareholders' Equity)…...................... 10(Applying of Specific Accounting of the Consolidated Quarterly Financial Statements)…...................... 10(Segment Information)…...................... 11(Subsequent Event)…...................... 12－3－

1. Qualitative Information on Financial Results for the Period(1) Operating Results Analysis
During the term under review (April 1, 2024 to June 30, 2024), the global economic outlook remained uncertain due to tightmonetary policy in the U.S. and Europe as well as higher geopolitical risks. In Japan, each medical institution strove to implementtask shifting and improve its operational efficiency, as work style reforms for medical staff took effect in April 2024 and medical
treatment fees were revised in June 2024. However, business sentiment in medical institutions deteriorated due to difficulties insecuring medical professionals. Internationally, capital expenditure in China was still cautious due to the impact of the anticorruption campaign and economic slowdown. In the U.S., hospital finance showed a trend of improvement as the number of
testing and surgical procedures increased. Medical institutions both in Japan and internationally have promoted medical digitaltransformation, which includes data health, telemedicine, and utilization of AI and ICT, because they need to urgently improve thequality and efficiency of medical care.
Under these circumstances, Nihon Kohden implemented its Three-year Business Plan, BEACON 2030 Phase II, starting fromFY2024. The Company aims to achieve targets for three indicators: growth, profitability, and capital efficiency, by conducting six
key measures including “Enhance product competitiveness”, “Focus on growth of North America Business”, and “Implement thereform of the profit structure”.
Japan: Nihon Kohden concentrated on enhancing sales activities which match each market; the acute care hospital market, thesmall and mid-sized hospital market, and the clinic market. The Company also focused on its consumables and services businessas well as strengthening its marketing and service capabilities, creating customer value which contributed to improving medical
safety, patient outcomes, and operating efficiency. Sales decreased due to a reactionary decline in sales of IT systems compared tothe strong growth due to large orders in the same period of the previous fiscal year, while sales of consumables and services
increased. 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. Sales of Patient Monitors and Physiological Measuring Equipment decreased due tolower sales of IT systems. Sales of Other Medical Equipment remained flat. Sales of Treatment Equipment increased favorably,
mainly due to sales of AEDs and ventilators. As a result, domestic sales decreased 2.2% over the first quarter of FY2023 to¥29,493 million.
International: Overseas sales decreased, due to the impact of a change in the fiscal term of Defibtech, LLC according to thereorganization of subsidiaries in the U.S. in the same period of the previous fiscal year. Another reason was that sales in Asia &Other decreased, mainly in China. In North America, sales of patient monitors, ventilators, and neurology products increased
favorably, while sales of AEDs decreased. Sales in Latin America achieved double-digit growth, mainly in Brazil and Mexico.
Sales in Europe decreased, as sales of AEDs decreased mainly in the Netherlands and the U.K., while sales in Germany increased.
Sales in Asia & Other decreased, as sales in China and the Middle East decreased compared to the strong growth in the same
period of the previous fiscal year, as well as lower sales in Southeast Asia. Sales of Treatment Equipment and Physiological
Measuring Equipment decreased, while sales of Patient Monitors and Other Medical Equipment increased. As a result,international sales decreased 9.9% over the first quarter of FY2023 to ¥16,734 million.
As a result of the above, overall sales during the term under review decreased 5.1% over the first quarter of FY2023 to ¥46,227
million. Due to decreased sales and lower gross profit margin, operating loss of ¥1,248 million was recorded, compared tooperating income of ¥2,205 million in the first quarter of FY2023. This was also because domestic gross profit margin of in-houseproducts such as IT systems decreased and inventory write-down of a discontinued model was recorded. Ordinary income
decreased 71.1% to ¥1,674 million and income attributable to owners of parent decreased 79.8% to ¥766 million over the firstquarter of FY2023, reflecting foreign exchange gains.
* In the previous fiscal year, Defibtech, LLC changed its fiscal term from end on December 31 to end on March 31, according to
the reorganization of U.S. subsidiaries. In the first quarter ended June 30, 2023, Nihon Kohden consolidated the 6 months of
Defibtech’s operating results from January 1, 2023 to June 30, 2023.

Consolidated Sales Results by Product Category

Physiological Measuring Equipment
Patient Monitors
Treatment Equipment
Other Medical Equipment
Total
Products
Consumables and Services(Reference) Sales by Region
Domestic Sales
Overseas Sales
North America
Latin America
EuropeAsia & Other(Millions of yen)Three months ended June 30, 2024
AmountGrowth rate (%)- 5.4
10,170- 1.8
17,314- 14.8
10,835+ 3.6
7,906
46,227- 5.1
21,331- 11.7
24,895+ 1.3

29,493
16,734
9,281
993
2,658
3,799

－4－

- 2.2
- 9.9
+ 5.6
+ 30.2- 9.2- 37.6

(Operating Results by Reporting Segments)
Japan: Sales decreased 2.0% to ¥29,729 million and segment income decreased 46.0% to ¥1,775 million in the first quarter of
FY2024.
North America: Sales decreased 7.8% to ¥9,726 million and segment loss was ¥1,019 million in the first quarter of FY2024(Segment loss of ¥918 million in the first quarter of FY2023).
Rest of World: Sales decreased 13.6% to ¥6,771 million and segment loss was ¥59 million in the first quarter of FY2024(Segment income of ¥165 million in the first quarter of FY2023).

(2) Financial Conditions Analysis(i) Financial Position
Total assets at the end of the current fiscal period decreased by ¥9,446 million compared to the end of the previous fiscal
year to ¥223,787 million.
Current assets decreased by ¥11,896 million to ¥172,437 million compared with the end of the previous fiscal year. Thiswas mainly due to a decrease in notes and accounts receivable resulting from the collection from the end of the previous fiscal
year.
Fixed assets increased by ¥2,450 million to ¥51,350 million compared with the end of the previous fiscal year. This was
mainly due to increase in deferred tax assets, as well as an increase in construction in progress for a new plant at Tsurugashima.
Total liabilities at the end of the current fiscal period decreased by ¥7,574 million compared to the end of the previous
fiscal year to ¥44,576 million. This was mainly due to a decrease in notes and account payable, as well as accrued income taxes.
Total net assets at the end of the current fiscal period decreased by ¥1,871 million compared to the end of the previous
fiscal year to ¥179,211 million. This was mainly due to a decrease in retained earnings.
As a result, net assets per share decreased by ¥11.15 to ¥1,068.05 and the equity ratio increased by 2.5 percentage
points from 77.6% at the end of the previous fiscal year to 80.1%.
Note: Effective July 1, 2024, each share of common stock was split into two shares. Net assets per share is calculated on theassumption that the stock split was implemented at the beginning of the fiscal year ended March 31, 2024.
(ii) Cash Flows
Cash and cash equivalents (hereinafter referred to as “funds”) on a consolidated basis at the end of the current fiscal year
decreased by ¥3,083 million compared with the end of the previous fiscal year to ¥46,794 million.
The status of each cash flow and their factors in the current fiscal year are as follows.
(Cash flows from operating activities)
Funds provided by operating activities used ¥544 million (income of ¥4,991 million in the same period of the previous fiscal
year). This is mainly due to income before income taxes of ¥1,669 million, a decrease in trade receivables of ¥12,623 million, adecrease in trade payables of ¥3,583 million, foreign exchange gains of ¥2,080 million, income taxes paid of ¥5,360 million.
(Cash flows from investing activities)
Funds used in investing activities increased by ¥38 million year-on-year to ¥1,115 million. This is mainly due to the purchaseof property, plant and equipment, amounting to ¥495 million, and the purchase of intangible assets, amounting to ¥490 million.
(Cash flows from financing activities)
Funds used in financing activities decreased by ¥894 million year-on-year to ¥2,581 million. This is mainly due to cash
dividends paid of ¥2,565 million.

(3) Consolidated Forecast for FY2024
Based on recent performance trends and the future outlook, the Company revised its forecast for the first half of FY2024,
previously announced on May 13, 2024.
The Company forecasts its overall sales for the first half of FY2024 to be ¥102,000 million (down ¥2,000 million from its
previous forecast). Domestic sales are expected to show a low-single-digit decline over the first half of FY2023, falling short of
the Company’s previous forecast, as budget executions in the university and public hospital markets will be more concentrated in
the second half than its expectations. There is also a cautious stance on capital expenditure by private hospitals. The reason behind
this trend is that each medical institution is facing difficulty in securing medical professionals, responding to work style reforms
for medical staff and the medical treatment fee revision. Internationally, sales are expected to show a low-single-digit decline on acomparable basis, excluding the currency effect and the impact of a change in the fiscal term of Defibtech, LLC, in the same
period of the previous fiscal year. Overseas sales are expected to fall short of the Company’s previous forecast, as sales in China
will continue to decrease in the second quarter and business deals and budget executions in the Middle East and Southeast Asia
will be more concentrated in the second half than its expectations. In North America, which is a market that the Company isfocusing on, sales of patient monitors, ventilators, and neurology products are expected to increase favorably.
The Company forecasts its operating income, ordinary income, and income attributable to owners of parent for the first half of
FY2024 to be ¥3,000 million (down ¥4,000 million from its previous forecast), ¥3,000 million (down ¥4,000 million from its
previous forecast), and ¥1,500 million (down ¥3,000 million from its previous forecast), respectively. Income will fall short of theCompany’s previous forecasts, as sales will be lower than expected, while the Company aims at securing gross profit margin byfocusing on selling its in-house products.
The Company reaffirms its forecast for FY2024 unchanged as both domestic and overseas sales will be more concentrated in
the second half. The Company will also take further measures to reform the profit structure of the entire Group. After reviewing
the results of the first half and outlook of the second half, the Company will revise its forecast for FY2024 at the announcement offinancial results for the first half of FY2024 on November 7, 2024, if necessary.
The Company’s forecast for the second quarter of FY2024 is based on an exchange rate of 150 yen to the U.S. dollar and 160
yen to the euro.

－5－

2. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Millions of yen)March 31, 2024
ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment
Intangible assets
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
LIABILITIESCurrent liabilities:
Notes and accounts payable - trade
Short-term loans payable
Accrued income taxes
Provision for bonuses
Provision for product warranties
Other current liabilities
Total current liabilities
Non-current liabilities:
Other non-current liabilities
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets－6－

June 30, 2024

36,132
71,75914,30033,223
3,258
21,305
4,865-511
184,333

32,53559,69015,00033,3503,864
22,0906,440-535
172,437

25,41826,602

893
3,958
4,852

862
4,298
5,161

7,283
5,970
5,510
-134
18,62848,899233,233

7,399
5,985
6,338
-136
19,58651,350223,787

20,143
579
5,597
4,242
1,648
17,69049,901

17,743
584
2,041
3,990
1,723
16,25542,3382,249
2,249
52,1512,238
2,238
44,576

7,544
9,718
163,578-10,233
170,608

7,544
9,718
161,744-10,234
168,773

2,796
5,772
1,905
10,474
181,082
233,233

2,882
5,825
1,729
10,437179,211
223,787

(2) Consolidated Statements of Income(Millions of yen)Three months ended Three months ended
June 30, 2023
June 30, 2024
48,72846,227

Net sales
Cost of sales

24,376

24,370Gross profit

24,352

21,857

Selling, general and administrative expenses

22,146

23,105

Operating income (loss)

2,205-1,248Interest income

52

57

Dividend income

57

66

3,532

2,741

Subsidy income

046

Other, net

81

73

3,725

2,985

Interest expenses

3

8Loss on valuation of investment securities

80

1

Other, net

53

52

Total non-operating expenses

137

62

5,794

1,674

Gain on sales of non-current assets

10Gain on sales of investment securities

1―

Total extraordinary income

20

Loss on sales of non-current assets

00Loss on retirement of non-current assets

2

5

Total extraordinary losses

2

5

Income before income taxes

5,794

1,669

Income taxes

2,006

902

Net income

3,787

766

Income attributable to owners of parent

3,787

766

Non-operating income

Foreign exchange gains

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses－7－

(Consolidated Statements of Comprehensive Income)(Millions of yen)Three months ended Three months ended
June 30, 2023
June 30, 2024
3,787
766

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

－8－

665

85

1,036

52

-57

-175

1,644

-36

5,432

729

5,432

729

―

―

(3) Consolidated Statements of Cash Flows(Millions of yen)Three months ended Three months ended
June 30, 2023
June 30, 2024
Cash flows from operating activities
Income before income taxes

5,794

1,669

Depreciation and amortization

832

933

Increase (decrease) in provision

-353

-288

Increase (decrease) in net defined benefit asset or liability

-180

-267

Interest and dividend income

-110

-123

3

8

-2,347-2,0801

4Decrease (increase) in notes and accounts receivable - trade

9,625

12,623

Decrease (increase) in inventories-2,281

82

Increase (decrease) in notes and accounts payable - trade-3,364-3,583

Other, net

28-4,263

Subtotal

7,646

4,713

Interest and dividend income received

72

113

Interest expenses paid

-2

-11

Income taxes paid

-2,725-5,360Net cash flows from operating activities

4,991

-544

Proceeds from sales of investment securities

2

6

Proceeds from sales of property, plant and equipment

1

3-1,002-495

Purchase of intangible assets

-246

-490

Other, net

167

-139

-1,077-1,115

Net increase (decrease) in short-term loans payable

-72

-6

Purchase of treasury shares-0-0-3,396-2,565-7-9-3,476-2,581

Effect of exchange rate change on cash and cash equivalents

1,473

1,157

Net increase (decrease) in cash and cash equivalents

1,911-3,083

Cash and cash equivalents at beginning of period

43,98849,877

Cash and cash equivalents at end of period

45,89946,794

Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement of property, plant and equipment

Cash flows from investing activities

Purchase of property, plant and equipment

Net cash flows from investing activities
Cash flows from financing activities

Cash dividends paid
Repayments of lease obligations
Net cash flows from financing activities－9－(4) Notes to the Consolidated Financial Statements(Assumption of Going Concern)
Not applicable.
(Significant Changes in Shareholders' Equity)
Not applicable.
(Applying of Specific Accounting of the Consolidated Quarterly Financial Statements)(Method of Calculating Income Tax)
Income tax amount is calculated principally by multiplying reasonably estimated annual effective tax rate through the firstquarter ended June 30, 2024, with the effects of deferred taxes reflected, by the amount of year-to-date income before income
taxes.

－ 10 －

(Segment Information)
Sales and Income by Reporting Segment
Three months ended June 30, 2023
Reporting Segment

Japan

Sales
Revenue arising fromcontract with customers

North America Rest of World

Adjustment(Note 2)

Total

Amount onquarterly
consolidated
financialstatement(Note 3)30,333

10,553

7,841

48,728―48,728

―

―

―

―

―

―

Net sales to externalcustomers

30,333

10,553

7,841

48,728―48,728Intersegment sales

6,705

276

194

7,176

- 7,176―

Total sales

37,038

10,8308,036

55,905- 7,176

48,728Segment income (loss)

3,288

- 918

165

2,535

- 329

2,205

Other revenue(Notes)1. The amounts are aggregated by region, based on the location of the Company or its consolidated subsidiaries.
2. Segment income (loss) adjustments of negative ¥329 million include negative ¥249 million for the unrealized gains oninventories and negative ¥84 million for amortization of goodwill and intangible asset.
3. Segment income (loss) is adjusted to coincide with operating income in the Consolidated Statement of Income.

Three months ended June 30, 2024
Reporting Segment

Japan

North America Rest of World

Adjustment(Note 2)

Total

Amount onquarterly
consolidated
financialstatement(Note 3)

Sales
Revenue arising fromcontract with customers

29,729

9,726

6,771

46,227―46,227

―

―

―

―

―

―

Net sales to externalcustomers

29,729

9,726

6,771

46,227―46,227

Intersegment sales

7,036

425

184

7,646

- 7,646―

Total sales

36,765

10,151

6,956

53,873- 7,646

46,227

Segment income (loss)

1,775- 1,019- 59

697- 1,946- 1,248

Other revenue(Notes)1. The amounts are aggregated by region, based on the location of the Company or its consolidated subsidiaries.
2. Segment income (loss) adjustments of negative ¥1,946 million include negative ¥1,868 million for the unrealized gains oninventories and negative ¥82 million for amortization of goodwill and intangible asset.
3. Segment income (loss) is adjusted to coincide with operating income in the Consolidated Statement of Income.

－ 11 －

(Subsequent Event)(Disposal of Treasury Stock as Restricted Stock Remuneration)
Board of Directors of the Company held on July 2, 2024 has resolved to conduct a disposal of treasury stock as nonperformance-linked pre-delivery restricted stock remuneration, and the payment was completed on July 29, 2024.

1. Outline of disposal(1) Date of disposal(2) Type and number of shares disposed(3) Disposal value(4) Total disposal value(5) Planned allottees

July 29,2024
29,188 shares of the Company's common stock
2,308.5 yen per share
67,380,498 yen
The Company's Directors (*): 3 persons, 9,095 shares
The Company's Operating Officers: 14 persons, 20,093 shares* Excluding Directors serving as Audit & Supervisory Committee
Members and Outside Directors

2. Purpose and for Disposal
At the 69th Ordinary General Meeting of Shareholders held on June 25, 2020, the Company obtained the shareholders'approval to introduce a Restricted Stock Remuneration Plan ("Plan") that allots shares with transfer restrictions ("Restricted
Stock") to Directors (excluding Directors serving as Audit & Supervisory Members and Outside Directors; "Eligible
Directors") for the purpose of giving an incentive for enhancement of the Company's corporate value and encouraging sharedvalue with shareholders. Under the Plan, the Company also obtained the shareholders' approval to set the maximum amount of
the monetary compensation receivables in respect of which Restricted Stock at 100 million yen per year; the maximum
number of shares of Restricted Stock to be allotted to Eligible Directors at 320,000 shares per fiscal year; and the transfer
restriction period for Restricted Stock to be from the grant date of the Restricted Stock to the date when the Eligible Director
retires from the position of Director or Operating Officer of the Company (Effective July 1, 2024, each share of common
stock was split into two shares and the maximum number of shares is the number after the stock split).
(Stock Split and Partial Amendment to the Articles of Incorporation)
Based on Board of Directors of the Company held on May 13, 2024, a stock split and partially amendments to the Articles
of Incorporation following the stock split were carried out as of July 1, 2024.
1. Purpose of stock split
The purpose of the stock split is to create an environment that makes it easier for investors to invest in the Company’s stockand to increase the trading liquidity of the stock and expand the investor base, by lowering the amount of one unit ofinvestment.
2. Outline of stock split(1) Method of stock split
Each share of common stock held by shareholders listed or recorded in the final shareholders’ register as of Sunday, June 30,2024 was split into two shares.
(2) Increase in number of shares due to stock split(i) Total number of shares issued before stock split
88,230,980
shares(ii) Increase in number of shares due to stock split
88,230,980
shares(iii) Total number of shares issued after stock split
176,461,960
shares(iv) Total number of shares authorized to be issued after stock split
395,944,000
shares
3. Schedule of stock split(1) Public notice date of record date
Friday, June 14, 2024
(2) Record date
Sunday, June 30, 2024
(3) Effective date
Monday, July 1, 2024
* As the record date was a non-business day of the shareholders registry administrator, the actual record date was Friday, June
28, 2024.

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4. Partial amendment to the Articles of Incorporation(1) Reason for amendment
Along with the stock split, Nihon Kohden was amended Article 6 (Total Number of Shares Authorized to be Issued) of the
Articles of Incorporation of the Company, effective July 1, 2024, in accordance with the provision of Article 184, Paragraph 2of the Companies Act.
(2) Contents of amendment

Current Articles of Incorporation(The amendment is underlined.)
Amended Articles of Incorporation(Total Number of Shares Authorized to be Issued)(Total Number of Shares Authorized to be Issued)
Article 6.
Article 6.
The total number of shares authorized to be issued by The total number of shares authorized to be issued by
the Company shall be 197,972k shares.
the Company shall be 395,944k shares.

(Cancellation of Treasury Shares)
Board of Directors of the Company held on May 13, 2024 has resolved to cancel treasury shares pursuant to Article 178 of
the Companies Act, and carried out as of July 19, 2024.
1. Reasons for Cancellation of Treasury Shares
To improve capital efficiency and to return further profits to shareholders.
2. Details of Matters related to Cancellation(1) Class of shares to be cancelled:(2) Number of shares to be cancelled:

Common shares of the Company
5,500,000 shares(3.11% of the total number of shares issued before the cancellation)(3) Date of cancellation:
July 19, 2024
(4) Total number of shares issued after cancellation:
170,961,960 shares* Effective July 1, 2024, each share of common stock split into two shares and the above number of shares is the number after
the stock split.

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