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.

[Summary]
May 15, 2023
Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (Japan GAAP)NIHON KOHDEN CORPORATION (6849)
Prime Market, Tokyo Stock Exchange
Tokyo
Hirokazu Ogino, Representative Director, President
Fumio Izumida, Operating Officer, General Manager, Corporate Strategy Division（URL https://www.nihonkohden.co.jp）
Phone: +81 / 3 - 5996 - 8003

Stock Exchange Listing:
Head Office:Representative:
Contact:(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Highlights for FY2022 (From April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results
Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.
Net sales
Millions of yen%

FY2022
206,603
FY2021
205,129
Note: Comprehensive income:

0.7
2.7

Net income
per share - Basic

Income attributable toowners of parent

Ordinary income

Operating income
Millions of yen

Millions of yen%%

21,120-31.9
24,12230,992
14.4
34,563
FY2022: 18,626 million yen (-24.7%)

Millions of yen

%

-30.2
17,110-27.0
21.8
23,43528.5
FY2021: 24,750 million yen (22.9%)

Net income
per share - Diluted

Return on equity

Ordinary income
to total assets

Operating income
margin

yen

％

％

％

yen

203.28FY2022276.51
FY2021
Reference: Investment income for equity method:

―

10.6
15.9
FY2022: －million yen

Net assets

Equity ratio

―

11.3
10.2
17.1
15.1
FY2021: －million yen(2) Consolidated Financial Conditions
Total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

216,728

167,604

77.3

1,992.30

FY2022
FY2021
Reference: Equity capital:

210,201

74.4
1,852.39
FY2021: 156,381 million yen

156,381
FY2022: 167,604 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents,
end of the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen-2,513-7,647-4,303-7,485-7,30043,98860,095

FY2022
FY2021

25,6992. Dividends
Dividends per shareFirst quarter

InterimThird quarter(Second quarter)

yen

yen

Year-end

Full-year

yen

yen

Total
dividends(Annual)Dividend
Dividend on
payout ratio
equity ratio(Consolidated) (Consolidated)%

yen Millions of yen%

FY2021

―

19.00

―

48.00

67.00

5,661

24.2

3.8

FY2022

―

20.00

―

41.00

61.00

5,131

30.0

3.2

FY2023 (Forecast)

―

30.00

―

31.00

61.00

Note: Breakdown of year-end dividends for FY2021:

Ordinary dividends: 20.00 yen

35.4
Special dividends: 15.00 yen

Commemorative dividends: 13.00 yen

3. Consolidated Forecast for FY2023 (From April 1, 2023 to March 31, 2024)
Net salesFirst half
Full year

Operating income

Income attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

98,500215,000

4.4
4.1

6,000
21,500-16.9
1.8

Millions of yen－1－%

6,000 -53.9
21,500 -10.9

Millions of yen

Net income
per share - Basic%

Yen

4,000 -53.2
14,500 -15.3

47.55
172.36

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included:― companies (―)

Excluded:― companies (―)(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) 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

FY2022

88,230,980 shares

FY202188,730,980 shares

FY2022

4,104,612 shares

FY2021

4,309,526 shares

FY2022

84,170,968 shares

FY202184,757,441 shares(Reference) Non-Consolidated Financial Highlights
1. Non-Consolidated Financial Highlights for FY2022 (From April 1, 2022 to March 31, 2023)(1) Non-Consolidated Operating Results
Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.
Net sales

Operating income

Ordinary income

Millions of yen%

Millions of yen%

FY2022

159,415-1.6

21,109FY2021

161,976-1.4

25,650Net income per share- Basic

Millions of yen

Net income%

Millions of yen

%

-17.7

26,313 -17.7

19,865-6.7

14.8

31,977 32.9

21,29586.1

Net income per share- Diluted

Yen

Yen

FY2022236.01―

FY2021251.25―(2) Non-Consolidated Financial Conditions
Total assets

FY2022
FY2021
Reference: Equity capital:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

193,538

152,65478.9

1,814.59

186,622

139,262
FY2022: 152,654 million yen

74.6
1,649.61
FY2021: 139,262 million yen* This summary of financial result is not subject to audit procedures.
* 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 oforders tend to be concentrated in September and March due to these hospitals' budget executions. In particular, sales and income arehighly 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.

－2－

4. Review of Operations
During the term under review (April 1, 2022 to March 31, 2023), the overall global economy showed signs of recovery due tothe Living with COVID-19 policies taken by each country. However, the global economic outlook remained uncertain due tohigher prices of components and resources, supply chain disruption, and tight monetary policy in the U.S. and Europe. In Japan,
the burden on medical institutions fluctuated in accordance with the number of COVID-19 patients. Changes to the healthcare
system to respond to emerging infectious diseases and work style reforms for medical staff were also implemented in conjunction
with the medical treatment fee revision that occurred in April 2022. Medical equipment companies were strongly required toprovide solutions which contribute to infection control measures as well as improving the quality and efficiency of medical care.
Internationally, overall demand for medical equipment which contributes to easing medical staff workload remained steady amid
the growing shortage of nurses especially in the U.S. and the U.K.
Under these circumstances, Nihon Kohden implemented its Three-year Business Plan, BEACON 2030 Phase I. The Company
formulated the basic policies of the plan as follows: i) Embracing sustainability across business and corporate activities, ii)
Ensuring strict compliance and strengthening group governance, iii) Improving the profitability of existing businesses and making
strategic upfront investments, and iv) Establishing global SCM and strengthening core functions of operations. The Company
introduced a patient monitor specialized for neonatal resuscitation and an EEG amplifier with enhanced network capabilities inJapan, and an ECG with built-in wireless LAN both in Japan and internationally. In the U.S., the Company launched mid-range
bedside monitors and a mask-type ventilator. In certain overseas markets, the Company also introduced a mid-range ventilator
developed by Nihon Kohden OrangeMed, Inc, in the U.S. Internationally, Nihon Kohden strengthened its business structure. The
Company decided to reorganize its U.S. subsidiaries into a holding company structure, and acquired Software Team Srl in Italy, asoftware development company which collects data and alarms from medical devices such as patient monitors and forwards tomobile phones.
As a result, overall sales during the term under review increased 0.7% over FY2021 to ¥206,603 million. Operating income
decreased 31.9% to ¥21,120 million because of a lower gross profit margin due to higher prices of components and an
unfavorable product mix, as well as increased SG&A expenses, mainly due to the strengthening of human resources and thenormalization of sales and service activities. Ordinary income decreased 30.2% to ¥24,122 million and income attributable toowners of parent decreased 27.0% to ¥17,110 million.
[Sales by region]
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 consumables and services business aswell as strengthening its marketing and service capabilities, creating customer value propositions that contributed to improving
medical safety, patient outcomes, and operating efficiency. Domestic sales decreased due to a reactionary decline in demand forpatient monitors and ventilators, large numbers of which had been installed to treat COVID-19 patients in the previous fiscal year.
On the other hand, sales of Physiological Measuring Equipment and hematology instruments increased favorably as the number of
testing and surgical procedures showed a recovery trend and capital expenditure by medical institutions resumed. Sales in theuniversity and clinic market increased, while sales in the public hospital and private hospital markets decreased. Sales of AEDs in
the PAD markets also decreased. As a result, domestic sales decreased 0.4% over FY2021 to ¥135,734 million.
International: Sales increased on a yen basis due to yen depreciation, while sales in all regions decreased on a comparable basis.
It was affected by a reactionary decline in sales of Patient Monitors and ventilators compared to strong demand in the previous
fiscal year in regions where the spread of COVID-19 had resurged, as well as the Shanghai lockdown from the end of March to
the end of May 2022. In the Americas, sales in the U.S. increased on a yen basis. Sales in Latin America decreased, mainly in
Mexico and Chile. Sales in Europe decreased on a comparable basis and increased on a yen basis. Sales in France and Spaindecreased, while sales in Germany and the U.K. increased favorably. Sales in Asia & Other decreased due to the reactionary
decline in Egypt, India, and Vietnam where sales showed strong growth in the previous fiscal year. Sales also decreased in China,
where patient monitors were installed due to the COVID-19 resurgence in December 2022, but not enough to cover the impact
from the Shanghai lockdown. As a result, international sales increased 3.0% over FY2021 to ¥70,869 million.
[Sales by product category]Physiological Measuring Equipment: In Japan, sales of polygraphs for cath lab and EEGs achieved double-digit growth andsales of ECGs also increased, while sales of diagnostic information systems decreased. Internationally, sales of EEGs increased
favorably, while sales of ECGs decreased in all regions because there was an impact on local production due to the lockdown inShanghai. Overall, sales increased 9.1% over the previous fiscal year to ¥43,287 million.
Patient Monitors: In Japan, sales decreased due to a reactionary decline of transmitters and telemetry systems compared to theprevious fiscal year when demand increased. Sales of clinical information systems increased favorably and sales of consumables
such as sensors also increased. Internationally, sales decreased compared to the previous fiscal year when demand increased.
Sales in all regions decreased on a comparable basis but sales in the Americas and Europe increased on a yen basis. Overall, sales####
decreased 4.8% over the previous fiscal year to ¥80,815 million.
15867
Treatment Equipment: In Japan, sales decreased due to lower sales of ventilators and AEDs. Demand for ventilators to treat
COVID-19 patients has settled down and replacement demand for AEDs was in trough. Sales of defibrillators, and sales ofablation catheters in other treatment equipment
increasedsales increased
sales of AEDs
FY2018:9,714 favorably.
million yenInternationally,(-2.2%)FY2017:
9,937 favorably,
million yenas(7.8%)
showed strong growth in all regions, supported by steady demand. Sales of ventilators and defibrillators decreased, as demand totreat COVID-19 patients has settled down. Overall, sales increased 2.5% over the previous fiscal year to ¥44,463 million.
Other Medical Equipment: In Japan, sales of installation and maintenance services for medical devices and hematology
instruments increased favorably, while sales of locally purchased products decreased. Internationally, sales of hematology
analyzers and reagents increased significantly in Latin America and Europe. Overall, sales increased 2.3% over the previous fiscal
year to ¥38,036 million.

－3－5. Consolidated Sales Results by Product Category(Millions of yen)Physiological Measuring Equipment
Patient Monitors
Treatment Equipment
Other Medical Equipment
Total
Products
Consumables and Services

FY2022
Amount43,28780,81544,46338,036206,603108,904
97,699(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

135,734
70,86936,81812,34921,701

Growth rate (%)
+9.1
-4.8
+2.5
+2.3
+0.7
-4.9
+7.9
-0.4
+3.0
+10.1
+7.9
-9.3

6. Consolidated Forecast for FY2023
The global economic outlook shows economies facing high uncertainty, due to tight monetary policy to reduce inflation in the
U.S. and Europe, the protracted crisis in Ukraine, higher prices of components and resources, and complications in the supply
chain, in addition to the recent financial system instability. In Japan, each prefecture has revised the healthcare system inaccordance with the change of COVID-19’s category to class 5 infectious disease from May 2023. As work style reforms for
medical staff are scheduled to take effect in 2024, task shift and operational efficiency are further required in medical institutions.
Each prefecture will also discuss a regional vision of the healthcare system in 2040. Internationally, the shortage of nurses andhigher interest rates have caused business deterioration of medical institutions in the U.S. and Europe. In some emerging countries,
there are the move towards protectionism and regulatory tightening for medical device applications and registrations. Medical
equipment companies are expected to face a severe business environment because they are required to react to such changes in themarket environment promptly and flexibly and to meet the needs of medical institutions for solutions which contribute to improve
quality and efficiency of medical care.
Under these circumstances, Nihon Kohden continues to implement its Three-year Business Plan, BEACON 2030 Phase I, of
which the final year is FY2023. The Company formulated basic policies of the plan as follows: i) Embracing sustainability acrossbusiness and corporate activities, ii) Ensuring strict compliance and strengthening group governance, iii) Improving the
profitability of existing businesses and upfront investing strategically, and iv) Establishing global Supply Chain Management andstrengthening core functions of operations. In FY2023, Nihon Kohden will launch new value-added products: the Company’s firstsyringe pump control software for assisting total intravenous anesthesia, telemetry systems, bedside monitors for emerging
countries, and an automated chest compression device.
In Japan, Nihon Kohden will concentrate on enhancing sales activities which match each market; the acute care hospital market,
the small and mid-sized hospital market, and the clinic market. The Company will also focus on consumables and services
business as well as strengthening its marketing and service capabilities, creating customer value propositions that contribute toimproving medical safety, patient outcomes, and operating efficiency. Demand for medical equipment and IT systems which
contribute to improving the quality and efficiency of medical care are expected to remain steady.
Internationally, the Company will focus on increasing sales in the U.S. and emerging countries. In the U.S, the Company
reorganized its subsidiaries into a holding company structure in April 2023 to further strengthen its governance structure andoperations. The Company will enhance its presence in the U.S. by increasing synergy between its local R&D, production, sales
and services function. The Company’s new products such as mid-range bedside monitors and a mask-type ventilator are expected
to fully contribute to sales. In emerging countries, the Company will focus on capturing demand for establishing medical caresystem after COVID-19. In Southeast Asia, the Company established a sales branch in the Philippines in January 2023 andchanged the name of NKS Bangkok, Co., Ltd. to Nihon Kohden (Thailand) Co., Ltd. in April 2023. The Company will leverage
Nihon Kohden’s brand to strengthen its direct marketing and increase sales by meeting needs of medical institutions. The
Company will also proceed with process for regulatory approval and establish a sales and service network for a mid-range
ventilator in each country.
Nihon Kohden will undertake capital investments for establishing global SCM. In India, the Company will establish a newhematology factory, with completion of construction in Summer 2023 and start of operation in Summer 2024. In Tsurugashima
City, Saitama Prefecture, Japan, the Company will also build a new production facility both for manufacturing consumables suchas sensors, and for R&D of automated production technology, with start of construction in Spring 2024, completion of
construction in Spring 2025, and start of operation in 2026. To promote corporate DX, the Company will introduce PLM/MES
systems.
* PLM: Product Life-cycle Management, MES: Manufacturing Execution System.
The Company forecasts its overall sales, operating income, ordinary income, and income attributable to owners of parent for
FY2023 to be ¥215,000 million, ¥21,500 million, ¥21,500 million and ¥14,500 million, respectively.
The Company’s forecast for FY2023 is based on an exchange rate of 125 yen to the U.S. dollar and 139 yen to the euro.

－4－

(Consolidated Forecast for FY2023 by Product Category)(Millions of yen)Physiological Measuring Equipment
Patient Monitors
Treatment Equipment
Other Medical Equipment
Total
Products
Consumables and Services

FY2023 (Forecast)AmountGrowth rate (%)+1.9
44,100+3.2
83,400+8.4
48,200+3.3
39,300215,000+4.1+3.8
113,000
102,000+4.4(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

139,500
75,50040,20011,70023,600

+2.8
+6.5
+9.2
-5.3
+8.7

7. Basic policy on distribution of profits and dividends
Nihon Kohden recognizes that returning profits to shareholders is one of management’s most important tasks. The basic policy
on distribution of profits and dividends is to maintain stable and continuous dividend payments while retaining necessary reserves
for future business expansion. The priority for distribution of profits is i) investment necessary for future business expansion usedin R&D investments, capital investments, M&A or alliances, and development of human resources, ii) dividends, and iii) sharebuybacks. The Company sets a target consolidated dividend payout ratio of 30% or more. Share buyback is considered in a
flexible manner, taking into account comprehensively the Company’s future business deployment, investment plan, retained
earnings, and stock price level.
Based on the business performance in FY2022, the Company decided to increase by 21 yen to 41 yen per share of the ordinary
year-end dividend from the previous forecast of 20 yen per share. As a result, the full-year dividend for FY2022 will be 61 yen
per share, including the interim dividend of 20 yen per share.
In consideration of business performance, the full-year dividend for FY2023 will be 61 yen per share, which consists of interim
dividend of 30 yen and year-end dividend of 31yen.

8. Management Policy(1) Basic policies for corporate management
Nihon Kohden’s Management Philosophy as a medical electronics manufacturer is that we contribute to the world by fighting
disease and improving health with advanced technology, and create a fulfilling life for our employees. To realize its Management
Philosophy, the Company aims at achieving sustained growth and establishing reliance as a company that is highly evaluated by
the customers, shareholders, clients, and society in all aspects including products, service, technology, financial strength, and thequality of its employees.
In order to realize this basic policy and increase corporate value over the mid-to long-term, the Company recognizes thatenhancing corporate governance, by establishing a management structureand15867aimed at improving the soundness, transparency,
22.3
efficiency of management, is an important management issue. In FY2022, the Board of Directors consists of twelve directors(including four outside directors) and independent outside directors comprise one-third of the Board. Considering the issues ofgender and international diversity, one female
outsidedirectorandyentwo(-2.2%)
female operating
officers
are million
appointed.
FY2018:
9,714
million
FY2017:9,937
yen (7.8%)
The Company has adopted a Company with Audit & Supervisory Committee for strengthening supervisory functions,improving management transparency and soundness, and speeding up decision-making. At the same time, the Company has
established a Nomination & Remuneration Committee, which is composed of four independent outside directors and thecommittee chair is also an independent outside director.
(2) Target management indices
Nihon Kohden aims to increase ROE to enhance corporate and shareholder value. The Company sets its target consolidated
ROE at 10%, which exceeds its cost of capital, in its Three-year Business Plan, BEACON 2030 Phase I. The Company currently
estimates that its cost of capital is around 5%, which are reviewed every year.
In order to achieve the target, the Company will focus on improving its profitability by implementing its Three-year Business
Plan. The Company will also improve working capital by reducing cash conversion cycle, including measures such as reductionof inventories and faster debt collection, as well as establish investment decision criteria and enhance shareholder return.
To respond to increased demand due to the COVID-19 pandemic and the shortage of semiconductors, the Company has
increased inventories of finished goods and parts. It has resulted in a longer cash conversion cycle, 235 days in FY2022. In
FY2023, the Company will enhance inventory control and aim at 190 days, a similar level to FY2021, because the shortage ofsemiconductors is expected to be resolved.
To increase corporate value through investment necessary for future business expansion, the Company has adopted Net Present
Value (NPV) and Internal Rate of Return (IRR) as investment decision criteria and started evaluating new investment projects in
FY2022. The Company sets its target IRR at 10%, which exceeds its cost of capital as hurdle rate. The Board of Directors willverify the progress and effectiveness of investment projects beyond a certain amount.

－5－(3) Challenges to be addressed and mid-to long-term management strategy
In 2020, Nihon Kohden set out its Long-term Vision, BEACON 2030, for the next ten years to 2030. The Company aims tocreate a better future for people and healthcare by solving global medical issues. The Company has also set three transformations
to be achieved: Transforming into a global company creating high added value, Creating a solution business providing superior
customer value, and Establishing a global organization founded on Operational Excellence.
・Three-year Business Plan, BEACON 2030 Phase I, covering the fiscal years 2021 to 2023
The Company’s Three-year Business Plan, BEACON 2030 Phase I is the stage to strengthen its business foundation towardrealizing its Long-term Vision. The Company works on improving the profitability of existing businesses and cultivating new
business areas and business models.
1. Basic policy
・Embrace sustainability across business and corporate activities
・[Management] Ensure strict compliance and strengthen group governance・[Business] Improve the profitability of existing businesses and obtain the resources to invest strategically for sowing seeds of
new growth・[Operations] Establish global SCM and strengthen core functions of operations to lay a foundation for global growth
2. Embrace sustainability
The Nihon Kohden Group defined 12 material issues to be addressed through business and corporate activities in accordancewith the SDGs. In our business activities, we will address eight issues aimed at realizing the 5 visions for the future (Accessible/
Intelligent/Patient oriented/Connected/Optimized) which we designated in BEACON 2030. In corporate activities, we willaddress four issues of Human rights/Human resources, Quality, Governance, and Environment.
3. Six key strategies(1) [Management] Ensure strict compliance and strengthen group governance
The Company will establish and promote global management policy as well as strengthening internal control over domestic sales.
(2) [Business] Improve the profitability of existing businesses
The Company aims to improve the profitability of existing businesses through creating high customer value, enhancing
productivity, and timely launch of new products.
(3) [Business] Strengthen strategies in global business
The Company will focus on Japan, the U.S., and China, and establishes Global Quad-Polar Organization together with Europe &Emerging markets. The Company strengthens strategies in each region.
(4) [Business] Create new customer value by digital health solutions
The Company will establish a vital sign data platform for integration and analysis of data and develop clinical support
applications for improving patient outcomes and economy of medical care.
(5) [Operations] Promote corporate digital transformation
The Company will establish a global information system and communication system in order to promote work-style reforms andimprove operating efficiency.
(6) [Operations] Establish global supply chain management
The Company will realize supply
chain
data visualization
by DX
and reform
its operational
Fumio
Izumida,General Manager,
Corporate
Strategy
Division processes in procurement, production,and logistics.
4. Human resource development and corporate culture reform
In accordance with its Core Values (Integrity/Humbleness/Diversity/Initiative/Customer Centric/Goal Oriented/Creativity),
Nihon Kohden is introducing a new personnel system and enhancing its global human resource development programs to foster a
corporate culture in which employees take pride in contribution to healthcare and mission.

－6－

<The progress of BEACON 2030 Phase I>
In FY2022, which was the second year of this plan, the Company worked on continuing to supply products globally byimplementing reforms to its supply chain management and promoting collaboration across all divisions such as R&D, procurement,
production, logistics, and sales, to respond the product supply issues due to the shortage of semiconductors and the Shanghai
lockdown. In Japan, demand for medical devices, that had decreased over the past two years due to the COVID-19 pandemic,
recovered. Demand for consumables also increased favorably as the number of testing and surgical procedures recovered. Domestic
sales decreased due to a reactionary decline of COVID-19-related demand but exceeded its original forecast, because the Company
focused on consumables and services business as well as creating customer value propositions. Internationally, there were loss ofbusiness opportunities and delays in supplying new models due to the product supply issues in the first half of FY2022. In thesecond half of FY2022, sales recovered thanks to the launch of new mid-range beside monitors and a mask-type ventilator in the
U.S. and yen depreciation. The Company also received orders related to strengthening healthcare system especially in Europe, Latin
America, and India. Compared to its original forecast, full-year sales exceeded on a yen basis but were behind on a comparable
basis, because of the negative impact of delays in supplying new models in the U.S. and the Shanghai lockdown. As a result, Nihon
Kohden posted record highs in sales in FY2022. Operating income exceeded its original forecast, due to the increase in sales andhigher gross profit margin compared to its forecast.
In FY2023, which is the final year of this plan, Nihon Kohden continues to execute the six key strategies. The Company aims atachieving a highly profitable structure that can regularly secure a gross profit margin of 50% or more and an operating income
margin of 10% or more. As higher prices of components, utility costs, and personnel expenses are expected, the Company will
implement reforms to its supply chain management and optimize its selling prices.
¥100 million
Sales
Domestic Sales
Overseas Sales
Operating Income
Operating Income Margin
ROE

Forecast in FY2023
2,150
1,395
755
215
10.0%
－

Target in FY2023
1,970
1,340
630
200
10.2%
10%

－7－

9. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)March 31, 2022
ASSETS
Current assets:
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
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
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-8-

March 31, 2023

28,925
5,354―
53,02732,00030,243
3,495
14,6284,409-208
171,875

33,4592,401
2,669
59,934
11,00033,337
4,045
21,406
4,424-179
172,500

10,964
1,321
3,623
3,423
33
553
19,92010,788
1,260
3,632
7,074
41
1,648
24,446

794
2,942
3,737

1,044
3,177
4,221

6,225
6,264
2,387
-210
14,66738,325210,201

6,713
6,561
2,415
-129
15,56044,228
216,728

(Millions of yen)March 31, 2022
LIABILITIESCurrent liabilities:
Notes and accounts payable - trade
Short-term loans payable
Accounts payable - other
Lease obligations
Accrued income taxes
Accrued expenses
Provision for bonuses
Provision for product warranties
Other current liabilities
Total current liabilities
Non-current liabilities:
Lease obligations
Deferred tax liabilities
Net defined benefit liability
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 adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-9-March 31, 2023

24,045
325
4,408
10
5,669
4,132
5,013
1,245
5,953
50,80422,940
403
3,161
21
3,178
4,474
4,320
1,361
6,706
46,568

24
272
1,073
1,646
3,016
53,820

17
275
669
1,592
2,555
49,124

7,544
10,455142,224-9,331150,893

7,544
9,685
152,525-9,155
160,600

2,199
2,387
900
5,487
156,381210,201

2,377
4,003
623
7,003
167,604
216,728

(2) Consolidated Statements of Income(Millions of yen)

Year ended

Year ended

March 31, 2022

March 31, 2023

Net sales

205,129

206,603

Cost of sales

96,043

100,677

Gross profit

109,085

105,926

Selling, general and administrative expenses

78,09384,805

Operating income

30,992

21,120Interest income

132

194

Dividend income

107

119

3,175

2,386

Subsidy income

6352

Gain on valuation of investment securities―

33

Other non-operating income

393

442

Total non-operating income

3,872

3,230

Interest expenses

11

10

Loss on valuation of investment securities

80―

Other non-operating expenses

209

217

Total non-operating expenses

301

228

34,56324,122Gain on sales of non-current assets

18

699

Gain on sales of investment securities

63

Total extraordinary income

25

702

Loss on sales of non-current assets

00Loss on retirement of non-current assets

58

29

Loss on valuation of investment securities

265

80

Total extraordinary losses

324

109

Income before income taxes

34,26324,716

Income taxes - current

11,135

7,785

Income taxes - deferred

-308

-178

Total income taxes

10,827

7,606

Net income

23,435

17,110

Income attributable to owners of parent

23,435

17,110Non-operating income

Foreign exchange gains

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses- 10 -

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Net income

Year ended

Year ended

March 31, 2022

March 31, 2023

23,435

17,110

41

177

1,301

1,616

-28

-277

1,314

1,516

24,75018,62624,75018,626――

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- 11 -

(3) Consolidated Statements of Cash Flows(Millions of yen)
Year ended
March 31, 2023

Year ended
March 31, 2022
Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Loss (gain) on sales and retirement of property, plant and equipment

Loss (gain) on sales and retirement of intangible assets
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash flows from operating activities
Cash flows from investing activities
Proceeds from sales of investment securities
Purchase of investment securities
Proceeds from sales of property, plant and equipment
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investments in subsidiaries resulting in change inscope of consolidation
Other, net
Net cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Purchase of treasury shares
Cash dividends paid
Repayments of lease obligations
Purchase of investments in subsidiaries not resulting in change
in scope of consolidation
Net 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 equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

34,263
3,422
68
33
8
-11
284
47
-820
-239
11
-2,076345-612,506-7,557-1,768-24-131
38,355213-2-12,868
25,69924,716
3,675
116
-669
―
-149
-742
24
-802
-314
10
-1,86846-3-4,753-8,590-2,465
-975
199
7,451
359
-2
-10,322-2,51314-86
75-2,450
-484

85
-359
828
-7,458
-798

-929

-108

-442
-4,303163-7,647-25-2,400-4,842-31

30-1,001-5,733
-30

―

-750

-7,3001,643
15,73944,35660,095-7,485
1,539-16,107
60,09543,988

(Notes on U.S. subsidiaries reorganization)
Nihon Kohden resolved at its Board of Directors held on March 7, 2023 to reorganize a total of eight direct andindirect, wholly owned subsidiaries in the United States and make a contribution in kind of all shares of five of thedirect, wholly owned subsidiaries to Nihon Kohden OrangeMed, Inc. which would become the new holding
company. This reorganization was completed on April 1, 2023.
1. Purpose of the Reorganization
Nihon Kohden has established or acquired a total of eight direct and indirect, wholly owned subsidiaries in the
U.S. By transforming to a holding company structure and reorganizing these subsidiaries, Nihon Kohden aims toenhance its U.S. business further through (i) increased synergy, (ii) efficient group governance and operations and(iii) strengthened competitiveness utilizing its local R&D, production, and sales capabilities.
2. Outline of the Reorganization
1) Nihon Kohden made a contribution in kind of all shares of (i) Nihon Kohden America, Inc., (ii) Neurotronics, Inc.,(iii) Nihon Kohden Digital Health Solutions, Inc., (iv) Nihon Kohden Innovation Center, Inc. and (v) Resuscitation
Solution, Inc., to Nihon Kohden OrangeMed, Inc.
5.8
2) As a result of this contribution, Nihon Kohden OrangeMed, Inc. becomes a holding company for all other U.S.
subsidiaries. No immediate changes to the name or ventilator business of Nihon Kohden OrangeMed, Inc. will occur
as part of the currently approved reorganization.
3) Immediately following the contribution, Nihon Kohden America, Inc., Neurotronics, Inc., Nihon Kohden Digital
Health Solutions, Inc., Advanced Medical Predictive Devices, Diagnostics and Displays, Inc., and Nihon Kohden
Innovation Center, Inc. converted from corporations to limited liability companies in each applicable U.S.
jurisdiction.
4) Resuscitation Solution, Inc. was previously established for the purpose of purchasing and holding the ownershipof Defibtech, LLC, which was acquired by Nihon Kohden in 2012. Immediately following the contribution of sharesfrom Nihon Kohden to Nihon Kohden OrangeMed, Inc., Nihon Kohden dissolved Resuscitation Solution, Inc.
Defibtech, LLC then became a wholly owned subsidiary of Nihon Kohden OrangeMed, Inc.
5) According to this reorganization, Defibtech, LLC changed its fiscal term from end on December 31 to end on
March 31. In FY2023 ending March 31, 2024, Nihon Kohden will consolidate its 15 months operation results fromJanuary 1, 2023 to March 31, 2024.

- 13 -