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 13, 2024
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (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)

1. Consolidated Financial Highlights for FY2023 (From April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results
Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.
Net sales

Operating income

Millions of yen%

FY2023221,986
FY2022
206,603
Note: Comprehensive income:

7.4
0.7

Net income
per share - Basic

Millions of yen

Millions of yen%%

19,591-7.2
25,58921,120-31.9
24,122
FY2023: 20,497 million yen (10.0%)
Net income
per share - Diluted

Return on equity

yen

％

yen

202.45
FY2023203.28FY2022
Reference: Investment income for equity method:

Income attributable toowners of parent

Ordinary income

Millions of yen%

6.1
17,026-0.5-30.2
17,110-27.0
FY2022: 18,626 million yen (-24.7%)

Ordinary income
to total assets

Operating income
margin

％

％

9.8
10.6
―
FY2023: －million yen

11.4
8.8
11.3
10.2
FY2022: －million yen―(2) Consolidated Financial Conditions
Total assets

Net assets

Millions of yen

233,233
216,728

FY2023
FY2022
Reference: Equity capital:

Equity ratio

Net assets per share

Millions of yen%

181,082
167,604
FY2023: 181,082 million yen

Yen

77.6
2,158.40
77.3
1,992.30
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

15,607-2,513-5,208-7,647-6,968-7,48549,87743,988FY2023
FY2022

2. Dividends
Dividends per shareFirst quarteryenInterim(Second quarter)yen

Third quarter

Year-endyen

yen

Full-year

Total
dividends(Annual)yen Millions of yen

Dividend
Dividend on
payout ratio
equity ratio(Consolidated) (Consolidated)

%

%

20.00
41.00
61.00
30.0
3.2
―
―
5,131
30.00
31.00
61.00
30.1
2.9
―
―
FY2023
5,125
15.00
16.00
31.00
32.5
―
―
FY2024 (Forecast)
Note: At the Board of Directors’ meeting held on May 13, 2024, the Company resolved the Company resolved that each share ofcommon stock will be split into two shares effective on July 1, 2024. The annual dividends per share for the fiscal year ending March
31, 2025 (forecast) are based on the amount taking into consideration the stock split. 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.
FY2022－1－

3. Consolidated Forecast for FY2024 (From April 1, 2024 to March 31, 2025)
Net sales
Millions of yen

Operating income
Millions of yen%

Income attributable toowners of parent

Ordinary income%

Millions of yen%

Millions of yen

Net income
per share - Basic
Yen%

104,000 0.4
7,000
7,000 -44.2
4,500 -43.7
26.82
First half
-6.6
229,000 3.2
23,000 17.4
23,000 -10.1
16,000 -6.0
95.36
Full year
Note: At the Board of Directors’ meeting held on May 13, 2024, the Company resolved that each share of common stock will be split
into two shares effective on July 1, 2024. Basic earnings per share for the fiscal year ending March 31, 2025 are based on the amounttaking 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 53.64 yen for the first half and 190.71 yen for full year

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): Yes
Newly included: 1

Company name (Nihon Kohden OrangeMed, LLC)

Excluded: 1

Company name (Resuscitation Solution, Inc.)

Note: For details, please refer to "4. Consolicated Financial Statements and Primary Notes (5) Notes to Consolidated Financial
Statements (Business Combinations)" on page 22 of the attachment.
(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: None(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

FY2023

88,230,980

shares

FY2022

88,230,980

shares

FY2023

4,334,266

shares

FY2022

4,104,612

shares

FY2023

84,102,066

shares

FY2022

84,170,968

shares(Reference) Non-Consolidated Financial Highlights
1. Non-Consolidated Financial Highlights for FY2023 (From April 1, 2023 to March 31, 2024)(1) Non-Consolidated Operating Results
Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.
Net sales

FY2023
FY2022

Operating income

Millions of yen%

Millions of yen%

167,006
159,415

4.8-1.6

21,62021,1092.4-17.7

Net income per share- Basic

FY2023
FY2022

Ordinary income
Millions of yen

Net income per share- Diluted

Yen

Yen

223.32236.01――－2－

Net income%

30,476 15.8
26,313 -17.7

Millions of yen

18,781 -5.5
19,865 -6.7%

(2) Non-Consolidated Financial Conditions
Total assets
Millions of yen

FY2023
FY2022
Reference: Equity capital:

204,803
193,538

Net assets

Equity ratio

Millions of yen

164,836
152,654
FY2023: 164,836 million yen

Net assets per share
%

80.5
78.9
FY2022: 152,654 million yen

Yen

1,964.75
1,814.59* 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 of orders tend to beconcentrated 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.

－3－

Content of Supplementary Materials
1. Overview of Financial Results…............... 5(1) Review of Operations…............... 5(2) Financial Position…............... 7(3) Cash Flows…............... 7(4) Basic Policy on Distribution of Profits and Dividends…............... 8(5) Consolicated forecast for FY2024…............... 8

2. Management Policy(1) Basic Policies for Corporate Management…............... 9…............... 9(2) Target Management Indices…............... 9(3) Challenges to be addressed and Mid-to Long-term Management Strategy…............... 9(4) Other Significant Matters for Corporate Management…............... 11

3. Basic Approach to Selection of Accounting Standards…............... 11…............... 12

4. Consolicated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income…............... 12…............... 14(3) Consolidated Statements of Changes in Equity…............... 16(4) Consolidated Statnemtns of Cash Flows…............... 18…............... 19(5) Notes to Consolidated Financial Statements(Assumption of Going Concern)…............... 19(Basic of Presentation of the Consolidated Financial Statements)…............... 19(Notes to the Consolidated Statements of Income)…............... 21(Business Combinations)…............... 22(Segment Information)…............... 23(Per Share Information)…............... 26(Subsequent Event)…............... 26

4. Non-consolicated Financial Statements(1) Non-consolidated Balance Sheets…............... 28…............... 28(2) Non-consolidated Statements of Income…............... 31(3) Non-consolidated Statements of Changes in Equity…............... 32－4－

1. Overview of Financial Results(1) Review of Operations
During the term under review (April 1, 2023 to March 31, 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 prefecture revised its healthcare system,and task shifting and operational efficiency were further required in medical institutions, because work style reforms for medical
staff took effect in April 2024. Medical equipment companies were strongly required to provide solutions which contribute toimproving the quality and efficiency of medical care. Internationally, overall demand for medical equipment which contributes toeasing medical staff workloads remained steady, while the shortage of nurses and inflation of prices in the U.S. and Europe aswell as the economic slowdown and anti-corruption campaign in China continued to have a negative impact.
Under these circumstances, Nihon Kohden implemented its Three-year Business Plan, BEACON 2030 Phase I, which sets
FY2023 as its final year. The Company formulated the 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 making strategic upfront investments, and iv) Establishing global SCM and strengthening
core functions of operations. The Company introduced its first syringe pump control software for assisting with total intravenous
anesthesia in Japan. The Company also launched a home sleep recorder and a next-generation automated chest compression
device, both of which were developed in North America, as well as affordable models of bedside monitors developed in Shanghai.
The Company strengthened its overseas business structure through reorganizing its U.S. subsidiaries into a holding company
structure in April 2023 and completing the transition in January 2024.
As a result, overall sales during the term under review increased 7.4% over FY2022 to ¥221,986 million. Operating income
decreased 7.2% to ¥19,591 million because of increases in the cost of goods sold due to an increase in devaluation of inventories,
as well as increased SG&A expenses due to the strengthening of human resources and R&D investment. Ordinary income
increased 6.1% to ¥25,589 million, reflecting foreign exchange gains. Income attributable to owners of parent decreased 0.5% to¥17,026 million because of an increase in the tax burden ratio due to an impact of losses before income taxes in some subsidiariesof the Company, while gain on revision of retirement benefit plan was recorded as extraordinary income.
[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 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. As a result of these initiatives, sales in all markets and all product categories
increased. Sales in the public hospital and private hospital markets increased favorably driven by IT system solutions. Sales in theclinic market increased favorably and sales in the university market also increased. Sales of Physiological Measuring Equipment
and Treatment Equipment increased favorably. Sales of Patient Monitors and Other Medical Equipment also increased. As aresult, domestic sales increased 4.9% over FY2022 to ¥142,370 million.
International: Overseas sales showed double-digit growth due to yen depreciation and the impact of a change in the fiscal termof Defibtech, LLC according to the reorganization of subsidiaries in the U.S. In the Americas, sales in North America and Latin
America showed double-digit growth. In North America, sales of Treatment Equipment increased significantly, while sales ofPatient Monitors decreased. In Latin America, a large order in Costa Rica contributed to the sales increase. Sales in Mexico andColumbia also showed strong growth. Sales in Europe decreased on a comparable basis and increased on a yen basis. Sales inGermany and Russia decreased, while sales in Netherlands and Italy increased favorably. In Asia & Other, sales in the Middle
East and Africa increased significantly, thanks to a large order in Morocco. Sales in Taiwan and Vietnam also increased favorably.
Sales in China decreased due to the impact of the anti-corruption campaign from the third quarter of FY2023. As a result of theabove developments, overseas sales increased 12.3% over FY2022 to ¥79,615 million.
* Defibtech, LLC changed its fiscal term from end on December 31 to end on March 31, according to Nihon Kohden’sreorganization of its U.S. subsidiaries. In FY2023 ended March 31, 2024, Nihon Kohden consolidated the 15 months of
Defibtech’s operating results from January 1, 2023 to March 31, 2024.
[Sales by product category]Physiological Measuring Equipment: In Japan, sales of diagnostic information systems and EEGs achieved double-digit growth.
Sales of polygraphs for cath lab increased favorably and sales of ECGs also increased. Internationally, sales of EEGs increased
favorably in Europe and Asia & Other, while sales of ECGs decreased in Asia & Other and Europe. Overall, sales increased 7.5%
over the previous fiscal year to ¥46,517 million.
Patient Monitors: In Japan, sales of clinical information systems increased significantly and sales of consumables such as
sensors also increased. Sales of transmitters and bedside monitors decreased. Internationally, sales in Latin America increased
significantly thanks to large orders. Sales in Europe and Asia & Other decreased on a comparable basis and increased on a yenbasis. Sales in North America decreased. Overall, sales increased 4.1% over the previous fiscal year to ¥84,130 million.
Treatment Equipment: In Japan, sales of pacemakers and ICDs, ablation catheters in other treatment equipment, anddefibrillators increased favorably. Sales of AEDs also increased. Internationally, sales of Defibtech AEDs and a mask-type
ventilator increased significantly. Overall, sales increased 16.2% over the previous fiscal year to ¥51,665 million.
Other Medical Equipment: In Japan, sales of installation and maintenance services for medical devices as well as sales ofhematology instruments and reagents increased favorably. Sales of locally purchased products decreased. Internationally, sales ofhematology instruments and reagents increased favorably in Asia & Other. Overall, sales increased 4.3% over the previous fiscal
year to ¥39,673 million.

－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

FY2023
Amount46,517
84,13051,66539,673221,986
115,638
106,347(Reference) Sales by Region
Domestic Sales
Overseas Sales
North America
Latin America
EuropeAsia & Other

142,370
79,61537,058
6,039
13,104
23,413Growth rate (%)
+7.5
+4.1
+16.2
+4.3
+7.4
+6.2
+8.9
+4.9
+12.3
+14.7
+33.8
+6.1
+7.9

* Salse in the Americas are disclosed separately for sales in North America and Latin America due to the completion of the reorganization of
the U.S. subsidiaries.

Previously, the Nihon Kohden Group conducted its business activities within a single segment, medical electronic equipmentrelated business, which was internally subdivided into functions such as development, manufacturing, and sales. To further
expand its overseas business, the Company has been focusing on strengthening its local R&D, production, and sales capabilities
as well as increasing synergies. In April 2023, with the aim of achieving more efficient group governance and operations, theCompany reorganized its U.S. subsidiaries into a holding company structure. Following the reorganization, which was completed
in January 2024, the Company has shifted to a framework that comprehensively manages development, manufacturing, and sales
in each region. Starting from the third quarter of FY2023, Nihon Kohden has also reclassified its reporting segments into three
categories: Japan, North America, and Rest of World.
(Operating Results by Reporting Segments)
Japan: Sales increased 5.2% to ¥143,939 million and segment income decreased 8.4% to ¥20,605 million in FY2023.
North America: Sales increased 19.2% to ¥41,996 million and segment loss was ¥2,203 million in FY2023 (Segment loss of¥1,182 million in FY2022).
Rest of World: Sales increased 4.3% to ¥36,050 million and segment income increased 57.0% to ¥2,309 million in FY2023.

－6－

(2) Financial Position
Total assets at the end of the current fiscal year increased by ¥16,504 million compared with the end of the previous fiscal year to¥233,233 million.
Current assets increased by ¥11,833 million to ¥184,333 million compared with the end of the previous fiscal year. This was mainly
due to an increase in cash and deposits, accounts receivable (trade), securities (negotiable certificates of deposit) resulting fromincreasing the sales.
Fixed assets increased by ¥4,671 million to ¥48,899 million compared with the end of the previous fiscal year. This was mainly due
to a decrease in deferred tax assets, as well as an increase in net defined benefit asset resulting from the influence of the revision ofretirement benefit plans.
Total liabilities at the end of the current fiscal year increased by ¥3,026 million compared with the end of the previous fiscal year to¥52,151 million. This was mainly due to an increase in accrued income taxes.
Total net assets at the end of the current fiscal year increased by ¥13,478 million compared with the end of the previous fiscal yearto ¥181,082 million. This was mainly due to an increase in retained earnings.
As a result, net assets per share increased by ¥166.10 to ¥2,158.40 and the equity ratio increased by 0.3 percentage points from
77.3% at the end of the previous fiscal year to 77.6%.

(3) Cash Flows

Amounts (Millions of yen)
FY2022
FY202360,09543,988-2,513
15,607-7,647-5,208-7,485-6,9681,539
2,458-16,107
5,889
43,98849,877

Classification
Cash and cash equivalents at beginning of period
Cash flows from operating activities
Cash flows from investing activities
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 end of period

Cash and cash equivalents (hereinafter referred to as “funds”) on a consolidated basis at the end of the current fiscal year increasedby ¥5,889 million compared with the end of the previous fiscal year to ¥49,877 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 increased ¥15,607 million (expenditure of ¥2,513 million in the previous year). This ismainly due to income before income taxes of ¥29,369 million, a decrease in inventories of ¥3,859 million, an increase in tradereceivables of ¥4,088 million, a decrease in trade payables of ¥4,933 million.
(Cash flows from investing activities)
Funds used in investing activities decreased by ¥2,439 million year-on-year to ¥5,208 million. This is mainly due to the purchase ofproperty, plant and equipment, amounting to ¥3,626 million, and the purchase of intangible assets such as PLM/MES systems,
amounting to ¥1,106 million.
* PLM: Product Life-cycle Management, MES: Manufacturing Execution System.
(Cash flows from financing activities)
Funds used in financing activities decreased by ¥517 million year-on-year to ¥6,968 million. This is mainly due to cash dividends
paid of ¥5,968 million and purchase of treasury shares of ¥1,124 million.
(Reference) Trends in Cash Flow-Related Indices
FY2019FY2020

FY2021

FY2022

FY2023Equity ratio (%)

72.6

72.0

74.4

77.3

77.6

Market cap-based equity ratio (%)

206.1

142.5

118.5

139.4

144.0

4.4

2.9

1.4

-17.6

4.2

1,009.1

6,826.2

12,712.9-1,089.0

773.6Interest-bearing debt to cash flow ratio(%)
Interest coverage ratio (x)Equity ratio: Total net assets / Total assets
Market cap-based equity ratio: Total market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Total interest payments*All of the above is calculated on a consolidated basis.
*Market capitalization is based on the total number of shares outstanding excluding treasury shares.
*The cash flow above is the cash flow from operating activities as stated in the consolidated statements of cash flows.
*The interest-bearing debt includes all liabilities posted in the consolidated balance sheets on which the company pays interest.

－7－

(4) 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 make investments for future business expansion and enhance shareholder returns aswell as securing a sound financial foundation. The priority for distribution of profits is i) investment necessary for future businessexpansion used in R&D investments, capital investments, M&A or alliances, and development of human resources, and ii)
shareholder returns. In terms of shareholder returns, the Company will increase dividends in a stable manner in line with growth inbusiness performance. Share buybacks are conducted in a flexible manner, taking into account comprehensively the Company’s
future business deployment, investment plans, retained earnings, and stock price level. The Company has revised the indicatorsand targets for shareholder returns from a consolidated dividend payout ratio of 30% or more to a consolidated total return ratio of
35% or more.
The Company decided to pay the year-end dividend of 31 yen per share. As a result, the full-year dividend for FY2023 will be
61 yen per share, including the interim dividend of 30 yen per share. The Company also acquired ¥1,123 million of own shares on
February 5, 2024, pursuant to the Board of Directors’ resolution of February 2, 2024.
In consideration of business performance, the full-year dividend for FY2024 will be 31 yen per share, which consists of interim
dividend of 15 yen and year-end dividend of 16 yen. Effective July 1, 2024, each share of common stock will be split into twoshares pursuant to the Board of Directors’ resolution of May 13, 2024. The Company calculates dividends per share for FY2024
based on number of shares after the stock split.
In addition, as described in the press release regarding the acquisition of own shares and cancellation of treasury sharesannounced today, the Company will acquire its own shares up to 10 billion yen between August 5, 2024 and March 31, 2025, andcancel 5.5 million shares* of its treasury shares on July 19, 2024.
* Based on number of shares after the stock split.

(5) Consolidated Forecast for FY2024
The global economic outlook is expected to remain uncertain due to tight monetary policy in the U.S. and Europe as well as
higher geopolitical risks. In Japan, as work style reforms for medical staff have taken effect in April 2024 and the medical
treatment fee revision will occur in June 2024, task shifting and operational efficiency are further required in medical institutions.
Each prefecture will also discuss a regional vision of the healthcare system in 2040. Internationally, medical institutions’ businessis gradually improving as the number of testing and surgical procedures increases. On the other hand, capital expenditure by
medical institutions is still cautious due in part to inflation. In some emerging countries, there are the move towards protectionism
and regulatory tightening for medical devices. Medical equipment companies are expected to face a severe business environment
because they are required to react to such changes in the market environment promptly and flexibly and to meet the needs of
medical institutions for solutions which contribute to improve the quality and efficiency of medical care.
Under these circumstances, Nihon Kohden will implement its Three-year Business Plan, BEACON 2030 Phase Ⅱ, starting fromFY2024. The Company will implement the reform of the profit structure, make investments in growth areas, and establish
collaborations between new business models and existing businesses. The Company aims to achieve targets for three indicators,
which consist of growth, profitability, and capital efficiency, by conducting six key measures such as “Enhance ProductCompetitiveness” and “Focus on Growth of North America Business”.
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 IT system solutions is expected to settle down
compared to the strong growth in FY2023. However, demand for medical equipment and services which contribute to improving
the quality and efficiency of medical care is expected to remain steady, especially for patient monitors and treatment equipment.
Internationally, sales are expected to be high-single digit growth on a comparable basis excluding the currency effect and theimpact of a change in the fiscal term of Defibtech, LLC in FY2023. In North America, the Company will enhance its proposals forpatient monitors by adding digital health solutions, while demand for AEDs is expected to settle down compared to the strong
growth in FY2023. The Company will also focus on expanding sales of a mask-type ventilator, for which demand is increasing,and launch a mid-range ventilator. In the Rest of World, in China, there will be a reactionary decline compared to the first half of
FY2023, when demand increased due to expansion of ICUs as well as the impact of the anti-corruption campaign. In Southeast
Asia, the Company plans to establish a sales subsidiary in Vietnam in June 2024 and start local production in Indonesia by the endof FY2024. The Company will also strengthen its business structure and increase sales by meeting the needs of medical
institutions.
Gross profit margin is expected to improve as devaluation of inventories will decrease. SG&A expenses are expected toincrease due to wage increases. The Company will focus on improving personnel productivity through the reform of the profit
structure of the entire Group.
Nihon Kohden will undertake capital investments for advancing global supply chain management. In India, the Company will
start operation of a new hematology factory in Summer 2024. The Company will also build a new production facility both for
manufacturing consumables and for R&D of automated production technology, with the acquisition of a site in Tsurugashima City,
Saitama Prefecture, Japan, occurring in 2023, and the start of construction scheduled for July 2024, the completion of construction
at the end of 2025, and the start of operation in 2026. To further the implementation of corporate DX, the Company will introduce
PLM/MES* systems and generative AI.
* 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
FY2024 to be ¥229,000 million, ¥23,000 million, ¥23,000 million, and ¥16,000 million, respectively.
The Company’s forecast for FY2024 is based on an exchange rate of 140 yen to the U.S. dollar and 150 yen to the euro.

－8－

(Consolidated Forecast for FY2024 by Product Category)Physiological Measuring Equipment
Patient Monitors
Treatment Equipment
Other Medical Equipment
Total
Products
Consumables and Services(Millions of yen)
FY2024 (Forecast)AmountGrowth rate (%)+3.0
47,900+3.6
87,200+3.053,200+2.6
40,700229,000+3.2+2.0
117,900
111,100+4.5(Reference) Sales by Region
Domestic Sales
Overseas Sales
North America
Latin America
EuropeAsia & Other

147,000
82,00038,1005,200
12,40026,300

+3.3
+3.0
+2.8
-13.9
-5.4
+12.3

2. 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 structure aimed at improving the soundness, transparency, andefficiency of management, is an important management issue. In FY2023, the ratio of independent outside directors to the Boardof Directors is more than one-third and is expected to be 50% subject to the approval at the 73rd Ordinary General Meeting of
Shareholders to be held on June 26, 2024. Considering the issues of gender and international diversity, the Company has
nominated two female directors and a foreign director as candidates.
The Company has adopted a Company with Audit & Supervisory Committee structure 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 three 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 12%, which exceeds its cost of capital, in its Three-year Business Plan, BEACON 2030 Phase Ⅱ, which starts from April
2024. 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 introducing Nihon Kohden’s own ROIC formula and reducing the cash
conversion cycle through measures such as reduction of inventories and faster debt collection, as well as establishing investment
decision criteria and enhancing 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. This has resulted in a longer cash conversion cycle, 232 days in FY2023. In
FY2024, the Company will aim at 190 days, a similar level to FY2021 through further inventory control mainly at Production
Operations, which was newly established in April 2024, as well as by faster debt collection.
To increase corporate value through investment in 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. In Phase Ⅱ, the Company will set its target IRR at 12%, which exceeds its cost of capital. The Board of Directors
verifies the progress and effectiveness of investment projects beyond a certain amount every year.
(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.

－9－

<Review of Previous Three-year Business Plan, BEACON 2030 Phase I, covering FY2021 to FY2023>
In Japan, the Company promoted creating customer value propositions that contributed to improving medical safety, patient
outcomes, and operating efficiency, as healthcare systems to respond to emerging infectious diseases were established and work
style reforms for medical staff were implemented. Internationally, while the shortage of nurses and inflation of prices continued
to have a negative impact, the Company focused on proposing medical equipment which contributed to easing medical staff
workloads and enhancing its business foundation in the U.S. and emerging markets. The Company launched a series of its firstnew high-value-added products such as a fully automatic AED, a resuscitation monitor for neonates, syringe pump control
software for assisting with total intravenous anesthesia, and a mid-range ventilator developed by Nihon Kohden OrangeMed,
LLC in the U.S. Internationally, Nihon Kohden strengthened its business structure. The Company acquired AMP3D, LLC in the
U.S. and Software Team Srl in Italy. The Company also reorganized its U.S. subsidiaries into a holding company structure.
As a result, in FY2023 ended March 2024, which was the final year of BEACON 2030 Phase I, domestic sales increased
favorably. Overseas sales fell short of the Company’s target on a comparable basis excluding the impact of foreign exchange
rates, due to changes in the market environment mainly in the U.S. and China, which the Company has focused on. In addition toactual overseas sales fell short of its target, operating income margin fell short of its target because of increases in the cost of
goods sold due to an increase in devaluation of inventories, as well as increased SG&A expenses due to the strengthening of
human resources, wage increase, and inflation. Thus, improvement of profitability remains an issue. Additionally, the increased
inventories of finished goods and parts due to the shortage of semiconductors led to a longer cash conversion cycle, while theCompany promoted supply chain management reforms and continued to supply products globally.
¥100 million
Sales
Domestic Sales
Overseas Sales
Operating Income
Operating Income Margin
Income attributable toowners of parent
ROE

Target for FY2023
Results in FY2023
1,970
2,219
1,340
1,423
630
796
200
195
10.2%
8.8%
138

170

10%

9.8%

<Three-year Business Plan, BEACON 2030 Phase II, covering FY2024 to FY2026>
Faced with a rapidly changing global situation and a difficult business environment, in BEACON 2030 Phase II, Nihon Kohden
will implement the reform of the profit structure, make investments in growth areas, and establish collaborations between new
business models and existing businesses, based on the results and issues of the previous Three-year Business Plan.
1. Three Indicators and Six Key Measures
Nihon Kohden will strengthen its growth, profitability, and capital efficiency, as well as the practice of Sustainability
Management.
[Growth] Sales CAGR of 5% (FY2023-FY2026)
Enhance product competitiveness, Focus on growth of North America Business[Profitability] Operating income margin of 15% (FY2026)
Implement the reform of the profit structure of the entire Group, Advance global supply chain management[Capital efficiency] ROE of 12% (FY2026)
Introduce Nihon Kohden’s own ROIC formula, Reduce cash conversion cycle(1) [Growth] Enhance product competitivenessNihon Kohden will focus on strengthening its core Patient Monitoring Business and expanding Treatment Equipment Businessincluding ventilators which are expected to grow rapidly as well as Consumables and Services Business and Solution Businessincluding digital health solutions.
The Company will establish a common design platform and multi-plant design, refine cybersecurity measures, and strengthen
QA/RA structures. The Company will also shorten the development time for new products by promoting R&D process reforms in
addition to the introduction of PLM/MES systems.
* QA: Quality Assurance, RA: Regulatory Affairs, PLM: Product Life-cycle Management, MES: Manufacturing Execution
System.
(2) [Growth] Focus on growth of North America BusinessNihon Kohden will focus on the market strategy in three regions: Japan, North America, Rest of World. In North America, whichis expected to high growth, the Company aims to expand its market share and improve its profitability by prioritizing allocationof resources.
[Japan] Strengthen customer base and achieve sustainable growth by enhancing customer value proposition[North America] Strengthen ties with the major IDN/GPO & DoD/VA and improve brand awareness and profitability[Rest of World] Comply with laws and regulations related to medical equipment and strengthen local R&D, production, sales,and service capabilities* IDN: Integrated Delivery Network, GPO: Group Purchase Organization, DoD: Department of Defense, VA: Veterans Affairs.
(3) [Profitability] Implement the reform of the profit structure of the entire Group
Implement several measures to improve product mix, productivity, and supply chains－ 10 －

(4) [Profitability] Advance global supply chain management
Enhance PSI (Production, Sales, Inventory) Management, Strengthen global QMS (Quality Management System), Promote
multi-plant production(5) [Capital Efficiency] Introduce Nihon Koden’s own ROIC formula
Improve operating margins, Strengthen monitoring of return on investment(6) [Capital Efficiency] Reduce Cash Conversion Cycle
Strengthen procurement and production management capabilities mainly at the newly established Production Operations, Collectdebt faster2. Sustainability Management
To promote its practice of Sustainability Management, Nihon Kohden will partially review its material issues and KPIs, whichwere set out in the Phase I. The Company will also work on solving medical, environmental, and social issues.
Based on its Core Values, Nihon Kohden will disseminate the BEACON personnel system introduced in the Phase I andstrengthen its operation. The Company will also work on work style reforms and improve personnel productivity. In addition topromoting Diversity and Inclusion, the Company will foster a corporate culture of pride in contributing to healthcare byenhancing career support such as the development of global/DX human resources.
To further strengthen its Group governance, Nihon Kohden will ensure the diversity of the Board of Directors and speed up
decision-making by introducing a CxO framework. With the aim of encouraging the sharing of value with shareholders, theCompany will also review the remuneration structure for directors.
3. Target for FY2026 ending March 2027 (consolidated)¥100 million
Sales
Domestic Sales
Overseas Sales
Operating Income
Operating Income Margin
Income attributable toowners of parent
ROIC
ROE

Target for FY2026
2,560
1,570
990
385
15%
250
12%
12%

(4) Other Significant Matters for Corporate Management
Not applicable.

3. Basic Approach to Selection of Accounting Standards
The Company is preparing for the future application of IFRS by analyzing the impact on the consolidated financial statements
associated with its application and examining the specific work required thereafter.

－ 11 －

9. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)March 31, 2023
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
Net defined benefit asset
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－ 12 －March 31, 2024

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

36,132
1,408
3,744
66,606
14,30033,223
3,258
21,305
4,865-511
184,333

10,788
1,260
3,632
7,074
41
1,648
24,446

11,441
1,252
4,262
7,114
75
1,274
25,418

1,044
3,177
4,221

893
3,958
4,852

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

7,283
2,782
5,970
2,727
-134
18,62848,899233,233

(Millions of yen)March 31, 2023
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－ 13 －March 31, 2024

22,940
403
3,161
21
3,178
4,474
4,320
1,361
6,706
46,56820,143
579
4,943
36
5,597
5,126
4,242
1,648
7,583
49,901

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

39
265
―
1,943
2,249
52,151

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

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

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

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

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

Year ended
March 31, 2023
Net sales
Cost of sales

206,603*2

Gross profit
Selling, general and administrative expenses

Year ended
March 31, 2024

*1, *2

Operating income

100,677

221,986*2

110,639

105,926

111,346

84,805 *1, *2
21,12091,755
19,591Non-operating income
Interest income

194

289

Dividend income

119

130

Foreign exchange gains

2,386

5,370

Subsidy income

52

175

Gain on valuation of investment securities

33―

Other non-operating income

442

297

Total non-operating income

3,230

6,263

10

24

Loss on valuation of investment securities―

103

Other non-operating expenses

217

137

Total non-operating expenses

228

265

24,12225,589699

4Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

3

Gain on revision of retirement benefit plan―

Total extraordinary income

702

11

*3

4,038
4,054

Extraordinary losses
Loss on sales of non-current assets

00Loss on retirement of non-current assets

29

20

Impairment losses

―

*4

168

Loss on valuation of inventories―

Loss on valuation of investment securities

80

85
―

Total extraordinary losses

109

274

Income before income taxes

24,71629,369

Income taxes - current

7,785

9,213

Income taxes - deferred

-178

3,129

Total income taxes

7,606

12,342

Net income

17,11017,026

Income attributable to owners of parent

17,11017,026－ 14 －

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

Year ended
March 31, 2023
Net income

Year ended
March 31, 2024

17,11017,026

177

419

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

1,616

1,769

Remeasurements of defined benefit plans, net of tax

-277

1,282

Total other comprehensive income
Comprehensive income

1,516

3,470

18,626

20,497

18,626

20,497――

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests－ 15 －

(3) Consolidated Statements of Changes in Equity
Year ended March 31, 2023
(Millions of yen)

Shareholders’ equity
Capital stock
Balance at April 1, 2022

Capital surplus

7,544

10,455142,224

Total shareholders’equity-9,331150,893-5,734-5,734

17,11017,110Retained earnings

Treasury shares

Changes arising during year
Cash dividends
Net income attributable toowners of parent
Purchase of treasury share
Disposal of treasury share-19-1,074-1,000-1,0001,176

83Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes other thanstockholders’ equity
Total changes during the year

―

-769

10,301

176

9,707

Balance at March 31, 2023

7,544

9,685

152,525-9,155

160,600

-750

-750

―

Accumulated other comprehensive income

Balance at April 1, 2022

Valuation difference
on available-for-salesecurities
2,199

Foreign currency
Total accumulated
Remeasurements oftranslation
other comprehensive
defined benefit plansadjustment
income
2,387
900
5,487

Total net assets

156,381

Changes arising during year
Cash dividends
Net income attributable toowners of parent
Purchase of treasury share-5,734
17,110

Disposal of treasury share83-1,000Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes other thanstockholders’ equity
Total changes during the year

177

1,616

-277

1,516

1,516

177

1,616

-277

1,516

11,223

Balance at March 31, 2023

2,377

4,003

623

7,003

167,604-750－ 16 －

Year ended March 31, 2024
(Millions of yen)

Shareholders’ equity
Capital stock
Balance at April 1, 2023

Capital surplus

7,544

152,525

Total shareholders’equity-9,155
160,600-5,973-5,97317,026

17,026

Retained earnings

9,685

Treasury shares

Changes arising during year
Cash dividends
Net income attributable toowners of parent
Purchase of treasury share
Disposal of treasury share33-1,124-1,12446

79

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes other thanstockholders’ equity
Total changes during the year―33

11,053-1078

10,007

Balance at March 31, 2024

7,544

9,718

163,578-10,233

170,608――

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at April 1, 2023

2,377

Foreign currencytranslation
adjustment
4,003

Total accumulated
Remeasurements ofother comprehensive
defined benefit plansincome623

7,003

Total net assets

167,604

Changes arising during year
Cash dividends-5,973

Net income attributable toowners of parent

17,026

Purchase of treasury share-1,124

Disposal of treasury share

79

Change in ownershipinterest of parent due totransactions with noncontrolling interests―

Net changes other thanstockholders’ equity

419

1,769

1,282

3,470

3,470

Total changes during the year

419

1,769

1,282

3,470

13,478

Balance at March 31, 2024

2,796

5,772

1,905

10,474

181,082－ 17 －

(3) Consolidated Statements of Cash Flows
Year ended
March 31, 2023
Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Impairment loss
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 provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in net defined benefit asset or 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 inscope 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－ 18 －(Millions of yen)
Year ended
March 31, 2024

24,716
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
-10,322-2,51329,369
3,704
149
168
12
4
281
-151
139
-4,792-419
24-3,626103-11-4,0883,859-4,933
1,765
174
21,732390-20-6,495
15,60785-359
828-7,458
-798

16
-72
6
-3,626-1,160

-108

―

163
-7,647-371-5,20830-1,001-5,733-30

161-1,124-5,968
-36

-750

―

-7,485
1,539-16,107
60,09543,988-6,9682,458
5,889
43,98849,877

(5) Notes to the Consolidated Financial Statements(Assumption of Going Concern)
Not applicable.
(Basis of Presentation of the Consolidated Financial Statements)
1. Scope of consolidation
Number of consolidated subsidiaries: 31 companies
Nihon Kohden Tomioka Corporation
Nihon Kohden America, LLC
Nihon Kohden Europe GmbH and other 28 companies
Note: Nihon Kohden OrangeMed LLC is included in the scope of consoidation due to transfer of ventilator bussiness throughincorporation-type comapny split effective on January 1, 2024. Additionally, Resuscitation Solution, Inc. is excluded from the scope of
consolidation as it's liquidation has completed.
2. Accounting periods of consolidated subsidiaries
Of the consolidated subsidiaries, the fiscal year end of Shanghai Kohden Medical Electronic Instrument Corp., Nihon Kohden
Do
5.8
Brasil Ltda., Nihon Kohden Latin America S.A.S., Nihon Kohden Mexico S.A. de C.V. and Software Team Srl is December 31 and thedifference with the fiscal year end of the consolidated financial statements (March 31) does not exceed three months, so the financial
statements of these companies as of the fiscal year end are used, and necessary adjustments for consolidation are made when there are
significant transactions between the fiscal year end of these companies and the fiscal year end of consolidated financial statements.
Previously, the financial statements of Defibtech, LLC, a consolidated subsidiary whose fiscal year end was December 31, were usedand necessary adjustments for consolidation were made when there were significant transactions that occurred between its fiscal year end
3. Significant accounting principles(1) Valuation standards and methodology for material assets(i) Securities
Available-for-sale-securities-Securities other than for which there are no fair value:
Stated at fair value based on the quoted market price at the fiscal year end (with any unrealized gains or losses
being reported directly as a component of shareholders’ equity and the cost of any securities sold being
computed by the moving average method)-Securities for which there are no fair value:
Stated at cost determined by the moving average method(ii) Derivatives
Stated at fair value(iii) Inventories
Stated at cost (balance sheet amounts are measured at the lower of cost or net selling value),valuation methodology for each category of inventories is as follows:
Finished goods, Merchandise, semiprocessed goods: moving average method
Work in process: specific identification method
Raw materials, supplies: moving average method(2) Depreciation and amortization methods for material depreciable assets(i) Property, plant and equipment (excluding lease assets)
The Company and its domestic subsidiaries provided depreciation principally by the declining-balance method based on the estimateduseful lives, except for the buildings acquired on or after April 1, 1998 and the equipment attached to buildings and structures acquired on
or after April 1, 2016, which are depreciated based on the straight-line method. Its foreign subsidiaries provided depreciation principallyby the straight-line method.
The estimated useful lives are as follows:
Buildings and structures
3-50 years
Machinery, equipment and vehicles
2-15 years(ii) Intangible assets (excluding lease assets)
Straight-line method is applied.
Straight-line method over the useful lives (mainly 5 years) is applied for software.
(iii) Lease assets
Lease assets related to finance lease transaction without transfer of ownership
Lease assets are depreciated on a straight-line basis, with the lease periods as their useful lives and no residual value.

－ 19 －

(3)Policy on translation of major assets and liabilities denominated in foreign currency into Japanese Yen
Receivables and payables denominated in foreign currencies are translated into yen at the rate of exchange at the balance sheet date.
Assets and liabilities of overseas subsidiaries are translated into yen at the rate of exchange at the balance sheet date and revenues andexpenses into yen at the average rate of exchange prevailing during the year, and a comprehensive adjustment resulting from translation ispresented as “Foreign currency translation adjustment” in Net Assets.
(4) Basis of material allowances(i) Allowance for doubtful accounts
Allowance for doubtful accounts is measured at estimated recoverable amounts. For general receivables, the recoverable amounts are
estimated by historical write-off ratio and for individual receivables such as receivables with default risk, the recoverable amounts are
estimated individual basis.
(ii) Provision for bonuses
Provision for bonuses is measured based on estimated amount of payment for employee bonuses.
(iii) Provision for product warranties
Provision for product warranties is measured at estimated repair expenses based on ratio of the expenses incurred to sales and individual
estimates to provide for the cost of repairs to be made free of charge after shipment of the products.
5.8(5) Accounting treatment for retirement benefits(i) The method of attributing expected retirement benefit
For calculating benefit obligation, the method of attributing expected retirement benefit to periods up to the end of current fiscal year isthe benefit formula basis.
(ii) The method of amortizing actuarial gains and losses
Actuarial gains and losses are amortized using the declining balance method within over average remaining years of service of theemployees (5 years) from the following year in which the gains or losses are recognized.
(6) Recognition criteria for significant revenues and expenses
With respect to revenues arising from the Group’s contracts with its customers, major performance obligations in the principal businessand usual point in time that a performance obligation is satisfied (usual point in time to recognize revenues) are as follows:(i)Sales of products
Revenue is recognized at the time of delivery to the customer or at the time of acceptance upon inspection. For products such as
consumables that do not require installation, revenue is recognized at the time of shipment.
(ii)Repair, maintenance and other services
Repair, maintenance and other services includes revenues related to repair, inspection, maintenance and other services mainly related to
products. Revenue for repair and inspection is recognized at the time of completion of service provision and for maintenance and otherservices, revenue is recognized over the period in which the services are rendered as performance obligations are deemed to be satisfied
over time.
(7) Significant method of hedge accounting(i) Hedge accounting
Deferral hedge accounting is applied.
(ii) Hedge methods and hedged items
Hedge methods
Derivative transactions (forward exchange contract)
Hedged items
Planned trading transactions that are denominated in foreign currencies(iii) Hedge policy
The Group carries out forward exchange contract for hedging the risk of foreign exchange fluctuation of planned trading transactions
that are denominated in foreign currencies.
(iv) Evaluation of hedge effectivenessEvaluation of hedge effectiveness of planned trading transactions as hedge items and forward exchange contracts as hedge methods areomitted as their principal conditions are the same.
(8) Goodwill amortization and amortization period
Goodwill is amortized using the straight-line method over estimated duration of the effect (within 20 years). However, when the amountof goodwill is immaterial, it is amortized in total when it is recognized.
(9) Cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents as stated in the consolidated statements of cash flows consist of cash in hand, readily available deposits, andany short-term liquid investments with a maturity not exceeding three months at the time of purchase whose value is not subject tosignificant fluctuation risk.

－ 20 －

(Notes to the Consolidated Statements of Income)*1 Major accounts and amounts of selling, general and administrative expenses are as follows:

1 Salaries and allowances
2 Provision for bonuses
3 Retirement benefit expenses
4 Depreciation
5 Legal welfare expenses
6 Travel and transportation expenses
7 Research and development expenses
8 Freight and packing costs

Previous fiscal year
(From April 1, 2022
To March 31, 2023)¥34,437 million¥3,542 million¥2,045 million¥2,661 million¥7,043 million¥3,152 million¥6,200 million¥2,581 million

Current fiscal year
(From April 1, 2023
To March 31, 2024)¥39,094 million¥3,313 million¥2,227 million¥2,779 million¥7,737 million¥3,554 million¥6,996 million¥2,158 million*2 Research and development expenses included in general and administrative expenses and manufacturing costs for the year are as
follows:
Previous fiscal year
(From April 1, 2022
To March 31, 2023)¥6,200 million

Current fiscal year
(From April 1, 2023
To March 31, 2024)¥6,996 million*3 Gain on revision of retirement benefit plan
The Company and a part of consolidated subsidiaries of the Company have revised its retirement benefit plan as of March 1, 2024.
The gain on revision of retirement benefit plan of ¥4,038 million is recorded as an extraordinary income arising from this change.
*4 Impairment losses
In the fiscal year ended March 31, 2024, ¥168 million for an impairment loss on goodwill with respect to Software Team Srl isrecorded as an extraordinary losses. The carrying amount of goodwill is reduced to its recoverable amount due to inability to achieve
forecasted revenues. The recoverable amount was measured based on the value in use, and the value was determined to be zero as
insufficient future cash flow is forecasted.

－ 21 －

(Business Combinations)
According to the reorganization of its U.S. subsidiaries, Nihon Kohden passed a resolution at its Board of Directors held on
September 7, 2023, to i) change the name of Nihon Kohden OrangeMed, Inc., one of Nihon Kohden’s wholly owned subsidiaries,
to “Nihon Kohden North America, Inc.”, and ii) allow Nihon Kohden OrangeMed, Inc. to contribute and assign its ventilator
business to Nihon Kohden OrangeMed, LLC, a wholly owned subsidiary of Nihon Kohden OrangeMed, Inc. This company split
was completed on January 1, 2024.
1. Outline of Business Combination(1) Name and outline of business
Name: Ventilator businessBusiness: R&D, production, sales and service of ventilators(2) Date of business combination
January 1, 2024
(3) Legal form of business combination
Incorporation-type company split with Nihon Kohden OrangeMed, Inc., as a splitting company, one of Nihon Kohden’s
wholly owned subsidiaries, changed the name to Nihon Kohden North America, Inc. on January 1 2024; and Nihon Kohden
OrangeMed, LLC, as a succeeding company, one of Nihon Kohden’s wholly owned subsidiaries.
(4) Company name after the combination
Nihon Kohden OrangeMed, LLC (one of Nihon Kohden’s wholly owned subsidiaries）(5) Others
As the Company announced on March 7, 2023, Nihon Kohden reorganized its U.S. subsidiaries and Nihon Kohden
OrangeMed, Inc. became the new holding company to manage and control of its U.S. business as well as operates its ventilator
business starting April 1, 2023. As the transition to a holding company was completed, effective January 1, 2024, Nihon Kohden
OrangeMed, Inc. changed the name to Nihon Kohden North America, Inc. to manage and control of subsidiaries in the U.S.,
meanwhile Nihon Kohden OrangeMed, Inc. also transferred its ventilator business to Nihon Kohden OrangeMed, LLC.
2. Summary of Accounting Treatments
This company split is treated as a transaction under common control in accordance with “Accounting Standard forBusiness Combinations” (ASBJ Statement No.21 issued on January 16, 2019) and “Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance
No.10 issued on January 16, 2019).

－ 22 －

(Segment Information)
1. Sales and Income by Reporting Segment
Year ended March 31, 2023

(Millions of yen)Amount on
consolidated
financialstatement(Note 3)

Reporting Segment
Japan

Adjustment(Note 2)

Total

North America

Rest of World

136,800

35,24434,557

206,603―206,603

―

―

―

―

―

―

Net sales to externalcustomers

136,800

35,24434,557

206,603―206,603

Intersegment sales

24,919

1,343

1,039

27,302- 27,302―

Total sales

161,720

36,58835,597

233,905- 27,302

206,603

Segment income (loss)

22,502- 1,182

1,470

22,790- 1,670

21,120

Sales
Revenue arising fromcontract with customers
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 ¥1,670 million include negative ¥1,266 million for the unrealized gains oninventories and negative ¥445 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.

Year ended March 31, 2024

(Millions of yen)Amount on
consolidated
financialstatement(Note 3)

Reporting Segment
Japan

Adjustment(Note 2)

Total

North America

Rest of World

143,939

41,99636,050221,986―

221,986

―

―

―

―

―

―

Net sales to externalcustomers

143,939

41,99636,050221,986―

221,986

Intersegment sales

25,077

1,803

1,035

27,916- 27,916―

Total sales

169,016

43,80037,086249,903- 27,916

221,986

Segment income (loss)

20,605- 2,203

2,309

20,711- 1,120

19,591

Sales
Revenue arising fromcontract with customers
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 ¥1,120 million include negative ¥558 million for the unrealized gains oninventories and negative ¥363 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.

－ 23 －

2. Change in Reporting Segment
Previously, the Nihon Kohden Group conducted its business activities within a single segment, medical electronic equipmentrelated business, which was internally subdivided into functions such as development, manufacturing, and sales. To further expand
its overseas business, the Company has been focusing on strengthening its local R&D, production, and sales capabilities as well as
increasing synergies. In April 2023, with the aim of achieving more efficient group governance and operations, the Company
reorganized its U.S. subsidiaries into a holding company structure. Following the reorganization, which was completed on January
1, 2024, the Company has shifted to a framework that comprehensively manages development, manufacturing, and sales in eachregion. Starting from the third quarter of FY2023, Nihon Kohden has also reclassified its reporting segments into three categories:
Japan, North America, and Rest of World.

－ 24 －

[Related information]
Previous fiscal year (From April 1, 2022 to March 31, 2023)
1. Information by products and services(Millions of yen)Physiological
Measuring Equipment
Net sales to externalcustomers

Patient Monitors

43,287

Treatment Equipment

80,81544,463

Other Medical
Equipment

Total

38,036206,603

2. Geographic information(1) Net sales(Millions of yen)
North America

Japan

Latin America

32,303

135,734

Europe4,514

Asia and other
12,349Total

21,701

206,603

Notes: Net sales are based on the location of customers and are classified by country or region.
(2) Property, plant and equipment(Millions of yen)
North America

Japan

Latin America

973

21,682Europe74

Asia and other
264

Total

1,451

24,446

3. Information by major customers
Because no particular customer whose sales are over 10% of sales in the consolidated statement of income exists, the information bymajor customers is not disclosed.

Current fiscal year (From April 1, 2023 to March 31, 2024)
1. Information by products and services(Millions of yen)Physiological
Measuring Equipment
Net sales to externalcustomers

46,517

Patient Monitors

Treatment Equipment

84,13051,665

Other Medical
Equipment

Total

39,673221,986

2. Geographic information(1) Net sales(Millions of yen)
North AmericaJapan

37,058142,370

Latin America

Europe6,039

Asia and other
13,104

Total

23,413221,986

Note: 1. Net sales are based on the location of customers and are classified by country or region.
2. Net sales of "Americas" has been changed in "North America" and "Latin America" from this fiscal year. This change has
been reflected in the previous fiscal year.
(2) Property, plant and equipment(Millions of yen)
North AmericaJapan
21,9181,206

Latin America

Europe84

Asia and other
286

1,923

Total
25,418

3. Information by major customers
Because no particular customer whose sales are over 10% of sales in the consolidated statement of income exists, the information bymajor customers is not disclosed.

－ 25 －

(Per Share Information)
Item

Previous fiscal year
(From April 1, 2022
To March 31, 2023)

Current fiscal year
(From April 1, 2023
To March 31, 2024)

Net assets per share¥1,992.30¥2,158.40

Net income per share¥203.28¥202.45

Notes:
1. Diluted net income per share for the previous and current fiscal year are not stated as there are no potential shares that have dilutive
effect.
2. The basis for calculating net income per share and net assets per share is as follows:(1) Net income per share
Item

Previous fiscal year

Current fiscal year

(From April 1, 2022

(From April 1, 2023

To March 31, 2023)

To March 31, 2024)

Income attributable to owners of parent(Millions of yen)
Income not applicable to common
stockholders (Millions of yen)

17,11017,026――

Income attributable to owners of parent
applicable to common stock (Millions ofyen)

17,11017,026Weighted average number of shares
outstanding (Thousands of shares)

84,17084,102(2) Net assets per share
Item

Previous fiscal year

Current fiscal year

(As of March 31, 2023)(As of March 31, 2024)

Total net assets (Millions of yen)

167,604

181,082

Amounts deducted from total net assets(Millions of yen)――

Net assets applicable to common stock(Millions of yen)

167,604

181,082

Number of shares outstanding at the endof year on which net assets per share is
calculated (Thousands of shares)

84,126

83,896(Subsequent Event)(Stock Split and Partial Amendment to the Articles of Incorporation)
Board of Directors of the Company held on May 13, 2024 has resolved to conduct a stock split and partially amend the
Articles of Incorporation.
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 stock andto increase the trading liquidity of the stock and expand the investor base, by lowering the amount of one unit of investment.
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 will be split into two shares.

－ 26 －

(2) Increase in number of shares due to stock split(i) Total number of shares issued before stock split(ii) Increase in number of shares due to stock split(iii) Total number of shares issued after stock split(iv) Total number of shares authorized to be issued after stock split

88,230,980
88,230,980
176,461,960
395,944,000

sharessharessharesshares

3. Schedule of stock split(1) Public notice date of record date
Friday, June 14, 2024 (planned)(2) Record date
Sunday, June 30, 2024
(3) Effective date
Monday, July 1, 2024
* As the record date is a non-business day of the shareholders registry administrator, the actual record date will be Friday, June 28,2024.
4. Partial amendment to the Articles of Incorporation(1) Reason for amendment
Along with the stock split, Nihon Kohden will amend 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 2 of theCompanies Act.
(2) Contents of amendment

Current Articles of Incorporation(Total Number of Shares Authorized to be
Issued)Article 6.
The total number of shares authorized to beissued by the Company shall be 197,972k
shares.

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

(Acquisition of Own Shares and Cancellation of Treasury Shares)
Board of Directors of the Company held on May 13, 2024 has resolved to acquire its own shares pursuant to the provisions ofArticle 156 of the Companies Act, as applied by replacing the relevant terms pursuant to the provisions of Article 165, paragraph(3) of the same Act, as well as to cancel treasury shares pursuant to Article 178 of the Companies Act.
1. Reasons for Acquisition of Own Shares and Cancellation of Treasury Shares
To improve capital efficiency and to return further profits to shareholders.
2. Details of Matters related to Acquisition(1) Class of shares to be acquired:(2) Total number of shares to be acquired:(3) Total amount of share acquisition costs:(4) Acquisition period:(5) Method of acquisition:
3. Details of Matters related to Cancellation(1) Class of shares to be cancelled:(2) Number of shares to be cancelled:(3) Date of cancellation:

Common shares of the Company
Up to 6,000,000 shares*(3.57% of the total number of issued shares excluding treasury shares)
Up to 10,000,000,000 yen
From August 5, 2024, to March 31, 2025
Market purchase on the Tokyo Stock Exchange
Common shares of the Company
5,500,000 shares*(3.11% of the total number of shares issued before the cancellation)
July 19, 2024

* Effective July 1, 2024, each share of common stock will be split into two shares and the above number of shares is the number
after the stock split.
(Reference)
1. Number of treasury shares held after July 1, 2024 stock split (Forecast)
Total number of issued shares excluding treasury shares:
167,793,220 shares
Total number of treasury shares:
8,668,740 shares
2. The total number of shares issued after the cancellation will be 170,961,960 shares.

－ 27 －

9. Non-Consolidated Financial Statements(1) Non-Consolidated Balance Sheets(Millions of yen)March 31, 2023
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
Prepaid expenses
Accrued income
Short-term loans receivable from subsidiaries and associates
Accounts receivable – other
Advances paid
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment－ 28 －March 31, 2024

12,4052,351
2,669
56,73911,00019,066
1,920
588
739
415
36,435
10,12352
34-4,775
149,767

16,285
1,346
3,744
62,231
14,30016,888
1,001
654
831
658
42,4178,155
38
68-2,939165,683

14,522-5,611
8,911
196
-169
27
663
-517
146
5
-5
0
20,267-17,760
2,507
5,666
26
-18
7
661
17,92814,737-5,939
8,798
209
-172
36
683
-545
137
5
-5
0
21,209-18,414
2,794
5,666
27
-9
17
863
18,315

(Millions of yen)March 31, 2023
Intangible assets
Goodwill
Patent right
SoftwareTelephone subscription right
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital of subsidiaries and associates
Long-term loans receivable from employees
Prepaid pension costs
Deferred tax assets
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
LIABILITIESCurrent liabilities:
Accounts payable - trade
Short-term loans payable
Accounts payable - otherAccrued income taxes
Accrued expenses
Contract liabilities
Deposits received
Provision for bonuses
Provision for product warranties
Other current liabilities
Total current liabilities
Non-current liabilities:
Provision for retirement benefits
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Total liabilities－ 29 －March 31, 2024

87
5
1,155
55
13
1,317

81
10
1,916
51
24
2,084

6,710
9,204
2,832
2
―
3,918
1,933
-77
24,524
43,770
193,538

7,272
1,340
2,905
9
2,938
2,210
2,120
-77
18,71939,119204,803

24,543
250
1,154
2,902
2,293
3,354
264
3,408
319
3
38,496

20,866
250
3,135
5,149
2,200
3,664
277
3,135
348
6
39,034

1,502
869
15
2,387
40,884

―
909
23
933
39,967

(Millions of yen)March 31, 2023
NET ASSETS
Shareholders' equity:
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets－ 30 －March 31, 2024

7,544

7,544

10,482
21
10,504

10,482
55
10,537

1,149

1,149

118,460
21,774
141,383-9,155150,277

133,460
19,582
154,191-10,233
162,039

2,377
2,377
152,654
193,538

2,796
2,796
164,836
204,803(2) Non-Consolidated Statements of Income(Millions of yen)

Year ended
March 31, 2023

Year ended
March 31, 2024

Net sales
Net sales of finished goods

113,025

119,514

Net sales of merchandise

46,39047,492

Total net sales

159,415167,006

15,721

18,693

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

352

226

48,52047,305Purchase of merchandise

35,84037,061

Total

100,434

103,286

Ending merchandise and finished goods

18,693

16,505

Total cost of sales

81,74186,781Gross profit

77,67480,225

Selling, general and administrative expenses

56,56458,605

Operating income

21,10921,620Interest income

824

1,684

Dividend income

1,618

1,795

Subsidy income

44

174

2,390

5,060

Rental income from land and buildings

169

166

Gain on valuation of investment securities

33―

Other non-operating income

161

136

Total non-operating income

5,241

9,018

1

1

Loss on valuation of investment securities―

103

Other non-operating expenses

36

57

Total non-operating expenses

37

162

26,31330,476

Non-operating income

Foreign exchange gains

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income
Gain on sales of non-current assets

692

―

1

11

308

2,100

―

3,749

1,002

5,861

0

0

Loss on retirement of non-current assets

17

13

Loss on valuation of investment securities

72―

Loss on valuation of shares of subsidiaries and associates

―

7,790

Gain on sales of investment securities
Reversal of provision of allowance for doubtful accounts for
subsidiaries and associates
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets

90

7,804

Income before income taxes

Total extraordinary losses

27,22528,533

Income taxes - current

6,919

8,228

Income taxes - deferred

440

1,522

Total income taxes

7,359

9,751

Net income

19,86518,781－ 31 －

(3) Non-Consolidated Statements of Changes in Equity
Year ended March 31, 2023

(Millions of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at April 1, 2022

7,544

Legal capitalsurplus10,482

Other
capitalsurplus

Total capitalsurplus41

10,523Legalretainedearnings
1,149

Retained earnings
Other retained earnings
Retained
Total
Generalearnings
retainedreservebrought
earnings
forward104,460
22,717
128,327

Changes arising during year
Cash dividends-5,734-5,734

Net income
Provision of generalreserve
Purchase of treasury share

19,865

19,865-14,000―

Disposal of treasury share
Net changes other thanstockholders’ equity
Total changes during the year
Balance at March 31, 2023

14,000―-19-1,074―
7,544

Treasuryshares―
10,482-9,331-19
21-19
10,504―
1,149

Valuation and translation
adjustments

Totalshareholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments

137,063

2,198

2,198

Total net
assets139,262

Changes arising during year
Cash dividends-5,734-5,734

Net income
Provision of generalreserve
Purchase of treasury share

19,865

19,865――-1,000-1,000-1,000

1,176

83

83

Disposal of treasury share
Net changes other thanstockholders’ equity
Total changes during the year
Balance at March 31, 2023

-1,074―

Shareholders’ equity

Balance at April 1, 2022

-19

176
-9,155

13,213150,277

178

178

178

178
2,377

178
2,377

13,392
152,654－ 32 －

14,000118,460-943
21,774

13,056
141,383

Year ended March 31, 2024

(Millions of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at April 1, 2023

Legal capitalsurplus

7,544

10,482

Other
capitalsurplusRetained earnings
Total capitalsurplus21

10,504

Legalretainedearnings
1,149

Other retained earnings
Retained
Total
Generalearnings
retainedreservebrought
earnings
forward118,460

21,774

141,383

Cash dividends-5,973-5,973

Net income
Provision of generalreserve

18,781

18,781-15,000―

Changes arising during year

15,000Purchase of treasury share―

Disposal of treasury share
Net changes other thanstockholders’ equity
Total changes during the year
Balance at March 31, 2024

33

33

―
―

―
7,544

―
10,48233
55

33
10,537

Valuation and translation
adjustments
Valuation
Total
difference
Totalvaluationonshareholders’andavailableequity
translation
for-saleadjustments
securities

―
1,149

Shareholders’ equity

TreasurysharesBalance at April 1, 2023

-9,155150,277

2,377

2,377

Total net
assets152,654

Changes arising during year
Cash dividends-5,973-5,973

Net income
Provision of generalreserve
Purchase of treasury share

18,781

18,781――-1,124-1,124-1,12446

79

79

Disposal of treasury share
Net changes other thanstockholders’ equity
Total changes during the year

-1,078

11,762419

419

12,181

Balance at March 31, 2024

-10,233

162,039

2,796

2,796

164,836419－ 33 －

419

419

15,000133,460-2,191
19,582

12,808154,191