These documents have been translated from Japanese originals for reference purposes only. In the eventof any discrepancy between these translated documents and the Japanese originals, the originals shallprevail.

February 2, 2024

Consolidated Financial Results for the 3rd Quarter of the Fiscal YearEnding March 31, 2024 (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
Phone: +81 / 3 - 5996 - 8003
(URL https://www.nihonkohden.co.jp)

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

1. Consolidated Financial Highlights for the 3rd Quarter of FY2023 (From April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results
Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.
Net sales

FY2023 3Q (9 months)
FY2022 3Q (9 months)

Operating income

Income attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

156,169
144,557

8.0-2.4

10,515
11,377-7.6-51.2

13,25813,937

-4.9
-43.5

7,926
8,860

-10.5
-47.6

Note: Comprehensive income:
FY2023 3Q: 9,769 million yen (-15.1%)
Net income per share
Net income per share- Basic- Diluted
Yen

Yen

FY2023 3Q (9 months)

94.20

―

FY2022 3Q (9 months)

105.25―

FY2022 3Q: 11,512 million yen (-34.8%)(2) Consolidated Financial Conditions

As of December 31, 2023
As of March 31, 2023

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

Yen

171,479

79.5

2,037.86

77.3
FY2022: 167,604 million yen

1,992.30

215,788
216,728

Reference: Equity Capital:

167,604
FY2023 3Q: 171,479 million yen

Net assets per share

2. Dividends
Dividends per share
Interim(Second quarter)

First quarter

Third quarter

Year-end

Full-year

yen

yen

yen

yen

yen

FY2022

―

20.00

―

41.00

61.00

FY2023

―

30.00

―
31.00

61.00

Income attributableto owners of parent

Net income pershare - Basic

FY2023 (Forecast)
Note: Revise of dividends forecast: None

3. Consolidated Forecast for FY2023 (From April 1, 2023 to March 31, 2024)
Operating income Ordinary income

Net sales%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Full year
221,500
7.2
Note: Revise of consolidated forecast: None

22,2005.1

24,000-0.5

15,500-9.4

184.20Millions of yen－1－* 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: 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 3Q

88,230,980

shares

FY2022

88,230,980

shares

FY2023 3Q

4,084,190

shares

FY2022

4,104,612

shares

FY2023 3Q

84,138,664

shares

FY2022 3Q

84,184,348

shares* 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－

Content of Supplementary Materials
1. Qualitative Information on Financial Results for the Period…............... 4(1) Operating Results Analysis…............... 4(2) Financial Conditions Analysis…............... 5(3) Consolidated Financial Forecast for FY2023…............... 5

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

1. Qualitative Information on Financial Results for the Period(1) Operating Results Analysis
During the term under review (April 1, 2023 to December 31, 2023), the global economic outlook remained uncertain due totight monetary 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 are scheduled to take effect in April 2024. Medical equipment companies were strongly required to provide
solutions which contribute to improving the quality and efficiency of medical care. Internationally, overall demand for medical
equipment which contributes to easing medical staff workloads remained steady, while the shortage of nurses and inflation ofprices in the U.S. and Europe 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 andstrengthening core functions of operations.
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 university and private hospital markets increased favorably thanks to large orders related to constructionof new hospitals. Sales in the public hospital and clinic markets 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 5.4% over the nine months of FY2022 to ¥98,598 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 the U.S. and Latin
America showed double-digit growth. In the U.S., sales of Treatment Equipment and Physiological Measuring Equipment
increased significantly, while sales of Patient Monitors decreased. In Latin America, sales in Columbia and Mexico showedstrong growth. Sales in Europe decreased on a comparable basis and increased on a yen basis. Sales in Germany decreased
compared to the strong growth in the same period of the previous fiscal year, while sales in the U.K. and the Netherlands
showed strong growth. In Asia & Other, sales increased, especially in Malaysia. A large order in Morocco also contributed tothe sales increase. Sales growth moderated in China mainly due to the impact of the anti-corruption campaign from the third
quarter of FY2023. Sales of all product categories increased. Sales of Treatment Equipment showed strong growth, because
sales of Defibtech AEDs and a mask-type ventilator increased significantly. Sales of Physiological Measuring Equipment alsoachieved double-digit growth. Sales of Patient Monitors and Other Medical Equipment decreased on a comparable basis andincreased on a yen basis. As a result, international sales increased 12.9% over the nine months of FY2022 to ¥57,571 million.
As a result of the above, overall sales during the term under review increased 8.0% over the nine months of FY2022 to¥156,169 million. Operating income decreased 7.6% over the nine months of FY2022 to ¥10,515 million due to an increase in
SG&A expenses resulting from the strengthening of human resources and R&D investment, as well as costs from the reform of
the profit structure starting from the third quarter of FY2023. The cost of sales ratio rose due to unfavorable product mix in salesof in-house products, while the impact of higher prices of components was offset by the Company’s efforts to raise selling
prices. Ordinary income decreased 4.9% to ¥13,258 million, and income attributable to owners of parent decreased 10.5% to¥7,926 million over the nine months of FY2022.
* 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 the nine months ended December 31, 2023, Nihon Kohden consolidated the 12 monthsof Defibtech’s operating results from January 1, 2023 to December 31, 2023.

(Consolidated Sales Results by Product Category)(Millions of yen)
Nine months ended December 31, 2023

Physiological Measuring Equipment
Patient Monitors
Treatment Equipment
Other Medical Equipment
Total
Products
Consumables and Services

Amount33,021
57,90838,25826,980156,169
78,302
77,866Growth rate (%)
+ 8.7
+ 3.5
+ 20.0
+ 2.5
+ 8.0
+ 6.4
+ 9.8

(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

98,59857,571
30,557
9,835
17,177+ 5.4+ 12.9+ 20.6
+ 4.6
+ 5.7

－4－

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 wascompleted on January 1, 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 5.9% to ¥99,782 million and segment income decreased 9.9% to ¥12,517 million in the nine months of
FY2023.
North America: Sales increased 24.2% to ¥30,598 million and segment loss was ¥1,689 million in the nine months of FY2023(Segment loss of ¥1,063 million in the nine months of FY2022).
Rest of World: Sales increased 0.5% to ¥25,788 million and segment income decreased 12.9% to ¥1,055 million in the ninemonths of FY2023.

(2) Financial Conditions Analysis(Financial Position)
Total assets at the end of the current fiscal period decreased by ¥940 million compared to the end of the previous fiscal
year to ¥215,788 million.
Current assets decreased by ¥3,333 million to ¥169,167 million compared with the end of the previous fiscal year. Thiswas mainly due to a decrease in accounts receivable resulting from the collection from the end of the previous fiscal year, as
well as an increase in inventories of raw materials and products to ensure a stable supply.
Fixed assets increased by ¥2,392 million to ¥46,621 million compared with the end of the previous fiscal year. This was
mainly due to increase in deferred tax assets, as well as an increase in property, plant and equipmen for a new reagent plant at
Nihon Kohden India Pvt. Ltd.
Total liabilities at the end of the current fiscal period decreased by ¥4,815 million compared to the end of the previous(3) Consolidated Forecast for FY2023
The Company reaffirms its forecast for FY2023, previously announced on November 8, 2023.
The assumed exchange rates for the fourth quarter of FY2023 are 142 yen to the U.S. dollar and 157 yen to the euro.

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

Amount46,10085,50050,90039,000221,500
115,500
106,000

Growth rate (%)
+ 6.5
+ 5.8
+ 14.5
+ 2.5
+ 7.2
+ 6.1
+ 8.5

(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

142,000
79,50043,40012,60023,500+ 4.6+ 12.2+ 17.9
+ 2.0
+ 8.3

－5－

2. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Millions of yen)March 31, 2023
ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment
Intangible assets
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
LIABILITIESCurrent liabilities:
Notes and accounts payable - trade
Short-term loans payable
Accrued income taxes
Provision for bonuses
Provision for product warranties
Other current liabilities
Total current liabilities
Non-current liabilities:
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 adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-

December 31, 2023

33,45965,005
11,00033,337
4,045
21,406
4,424-179
172,500

32,24057,55012,00036,432
4,326
22,2094,613-207
169,167

24,44624,976

1,044
3,177
4,221

1,055
3,469
4,524

6,713
8,977
-129
15,56044,228
216,728

7,039
10,214-133
17,12046,621
215,788

22,940
403
3,178
4,320
1,361
14,363
46,56818,539
442
2,750
2,458
1,514
16,223
41,929

669
1,885
2,555
49,124

351
2,028
2,379
44,3097,544
9,685
152,525-9,155
160,600

7,544
9,718
154,477-9,109162,631

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

2,617
5,778
450
8,847
171,479
215,788(2) Consolidated Statements of Income(Millions of yen)
Nine months ended Nine months ended
December 31, 2022 December 31, 2023
144,557
156,169

Net sales
Cost of sales

71,061

77,886Gross profit

73,49678,282

Selling, general and administrative expenses

62,11867,767

Operating income

11,377

10,515Interest income

126

169

Dividend income

108

116

Gain on valuation of investment securities

67
2,058

―
2,354

Subsidy income

36

147

Other, net

310

167

2,707

2,954

5

8
85

Other, net

―
142

117

Total non-operating expenses

147

211

13,937

13,258Gain on sales of non-current assets

2

3Gain on sales of investment securities

3

1

Total extraordinary income

65Loss on sales of non-current assets

00Loss on retirement of non-current assets

88Loss on valuation of investment securities

44―

Total extraordinary losses

52

8

Income before income taxes

13,89013,255

Income taxes

5,030

5,329

Non-operating income

Foreign exchange gains

Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of investment securities

Ordinary income
Extraordinary income

Extraordinary losses

Net income

8,860

7,926

Income attributable to owners of parent

8,860

7,926

-7-

(Consolidated Statements of Comprehensive Income)Net income
Other comprehensive income
Valuation difference on available-for-sale securities(Millions of yen)
Nine months ended Nine months ended
December 31, 2022 December 31, 2023
8,860
7,926
482

240

Foreign currency translation adjustment

2,418

1,775

Remeasurements of defined benefit plans, net of tax

-249

-172

Total other comprehensive income

2,652

1,843

11,512

9,769

11,512

9,769

―

―

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-8-(3) Notes to the Consolidated Financial Statements(Assumption of Going Concern)
Not applicable.
(Significant Changes in Shareholders' Equity)
Not applicable.
(Applying of Specific Accounting of the Consolidated Quarterly Financial Statements)(Method of Calculating Income Tax)
Income tax amount is calculated principally by multiplying reasonably estimated annual effective tax rate through thethird quarter ended December 31, 2023, with the effects of deferred taxes reflected, by the amount of year-to-date
income before income taxes.
(Additional Information)(Changes in the Fiscal Year and Other Matters of Consolidated Subsidiaries)
As the Company announced on March 7, 2023 that Nihon Kohden Corporation to Reorganize Its U.S. Subsidiaries into a
Holding Company Structure, Change in Specified Subsidiaries, and Name Change of Subsidiaries, the Company has
implemented the reorganizaion of its U.S. subsidiaries. Defibtech, LLC, one of Nihon Kohden’s wholly owned subsidiaries,
has changed its fiscal term from end on December 31 to end on March 31. For the third quarter of FY2023, the Company
has consolidated the twelve months from January 1, 2023, to December 31, 2023, and has adjusted for the impact of thechange in the fiscal term through the consolidated income statement.

－9－

(Segment Information)
1. Sales and Income by Reporting Segment
Nine months ended December 31, 2022

(Millions of yen)
Reporting Segment

Japan

Sales
Revenue arising fromcontract with customers

North America Rest of World

Adjustment(Note 2)

Total

Amount onquarterly
consolidated
financialstatement(Note 3)

94,264

24,632

25,660144,557―

144,557

―

―

―

―

―

―

Net sales to externalcustomers

94,264

24,632

25,660144,557―

144,557

Intersegment sales

19,804

1,204

803

21,813- 21,813―

Total sales

114,069

25,836

26,464

166,370- 21,813

144,557

Segment income (loss)

13,890- 1,063

1,211

14,038- 2,661

11,377

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 ¥2,661 million include negative ¥2,348 million for the unrealized gains oninventories and negative ¥340 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.

Nine months ended December 31, 2023

(Millions of yen)Amount onquarterly
Adjustment
consolidated(Note 2)
financialstatement(Note 3)

Reporting Segment

North America Rest of World

Japan

Total

Sales
Revenue arising fromcontract with customers

99,78230,59825,788156,169―

156,169

―

―

―

―

―

―

Net sales to externalcustomers

99,78230,59825,788156,169―

156,169

Intersegment sales

19,771

1,279

896

21,947- 21,947―

Total sales

119,553

31,87826,684

178,116- 21,947

156,169

Segment income (loss)

12,517- 1,689

1,055

11,883- 1,368

10,515

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 ¥1,368 million include negative ¥1,099 million for the unrealized gains oninventories and negative ¥274 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.

－10－

2. Change in Reporting Segment
Previously, the Nihon Kohden Group conducted its business activities within a single segment, medical electronicequipment-related 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, andsales capabilities as well as increasing synergies. In April 2023, with the aim of achieving more efficient group governanceand operations, the Company reorganized its U.S. subsidiaries into a holding company structure. Following thereorganization, which was completed on January 1, 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.

(Revenue Recognition)
Information on disaggregation of revenue arising from contracts with customers is as described in (Segment information).
(Subsequent Event)(Company Split of Subsidiary (Incorporation-Type))
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; andNihon 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 ofsubsidiaries 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).

－11－