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.

November 9, 2022

[Summary] Consolidated Financial Results for the 2nd Quarter of the Fiscal YearEnding March 31, 2023 (Japan GAAP)NIHON KOHDEN CORPORATION (6849)
Stock Exchange Listing:
Head Office:Representative:
Contact:

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)(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Highlights for the 2nd Quarter of FY2022 (From April 1, 2022 to September 30, 2022)(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%

Millions of yen%

Millions of yen

7,217 -58.6-7.8
17,414 98.8
FY2021 2Q (6 months)
17.3
Note: Comprehensive income:
FY2022 2Q: 11,012 million yen (-15.3%)
Net income per share
Net income per share- Basic- Diluted
FY2022 2Q (6 months)

FY2022 2Q (6 months)
FY2021 2Q (6 months)

94,349102,343

Yen

Yen

101.43144.85―

Income attributable toowners of parent

Ordinary income%Millions of yen―(2) Consolidated Financial Conditions

As of September 30, 2022
As of March 31, 2022

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

209,292
210,201

Reference: Equity Capital:

Net assets per share
Yen

77.674.4
FY2021: 156,381 million yen

162,424156,381
FY2022 2Q: 162,424 million yen

1,930.72
1,852.39

2. Dividends
Dividends per share
InterimThird quarter(Second quarter)

First quarter

Year-end

Full-yearyen

yen

yen

yenyenFY2021

―

19.00

―

48.00

67.00

FY2022

―

20.00
―

20.00

40.00

FY2022 (Forecast)
Note: Revise of dividends forecast: None
Note: Breakdown of year-end dividends for FY2021:

Ordinary dividends: 20.00 yen
Special dividends: 15.00 yen
Commemorative dividends: 13.00 yen

3. Consolidated forecast for FY2022 (From April 1, 2022 to March 31, 2023)
Net sales
Millions of yen

Income attributableto owners of parent% Millions of yen%

Operating income Ordinary income% Millions of yen

Full year
208,000
1.4
Note: Revise of consolidated forecast: Yes

19,000%Millions of yen-38.7

23,500－1－-32.0%

13,019 -27.6
8,541-30.5
17,990 119.0
12,294111.0
FY2021 2Q: 13,005 million yen (98.2%)

16,000-31.7

Net income pershare - Basic
Yen

190.19

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

Excluded:― companies (―)(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period(including treasury shares)(ii) Number of treasury shares at the end of the period(iii) Average number of shares outstanding during the period

FY2022 2Q

88,230,980

shares

FY202188,730,980

shares

FY2022 2Q

4,104,572

shares

FY2021

4,309,526

shares

FY2022 2Q

84,209,182

shares

FY2021 2Q

84,879,678

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, nationaluniversities, public agencies, and municipal hospitals) account for a relatively high percentage of total sales. Therefore, the bulk oforders tend to be concentrated in September and March due to these hospitals' budget executions. In particular, sales and income arehighly concentrated in the fourth quarter of the fiscal year.
* Earnings forecasts and other forward-looking statements in this release are based on information currently available and certain
assumptions that the Company believes are reasonable. Therefore, they do not constitute a guarantee that they will be realized. Actual
results may differ from such estimates due to unforeseen circumstances.

－2－

4. Review of Operations
During the term under review (April 1, 2022 to September 30, 2022), social and economic activity around the world showedsigns of recovery due to the benefits of economic measures and infection control measures taken by each country. However, theglobal economic outlook remained uncertain due to the Ukraine crisis and the Shanghai lockdown, in addition to the continued
shortage of semiconductors, higher prices of components and resources, and supply chain disruption. In Japan, the burden on
medical institutions fluctuated in accordance with the number of COVID-19 patients. Changes to the healthcare system to respondto emerging infectious diseases and work style reforms for medical staff were also implemented in conjunction with the medicaltreatment fee revision that occurred in April 2022. Medical equipment companies were strongly required to provide solutions
which contribute to infection control measures as well as improving the quality and efficiency of medical care. Internationally,
there were concerns about an economic slowdown due to tight monetary policy in the U.S. and Europe. However, overall demand
for medical equipment which contributes to improving the quality and efficiency of medical care remained steady.
Under these circumstances, Nihon Kohden implemented its three-year business plan, BEACON 2030 Phase I. The Company
formulated the basic policies of the plan as follows: i) Embracing sustainability across business and corporate activities, ii)
Ensuring strict compliance and strengthening group governance, iii) Improving the profitability of existing businesses and making
strategic upfront investments, and iv) Establishing global SCM and strengthening core functions of operations.
Japan: Nihon Kohden concentrated on enhancing sales activities which match each market; the acute care hospital market, thesmall and mid-sized hospital market, and the clinic market. The Company also focused on consumables and services business aswell as strengthening its marketing and service capabilities, creating customer value propositions that contributed to improving
medical safety, patient outcomes, and operating efficiency. Demand for physiological measuring equipment and hematology
instruments was favorable as the number of testing and surgical procedures showed a recovery trend and capital expenditure bymedical institutions resumed. Because there was a reactionary decline in demand for patient monitors and ventilators, large
numbers of which had been installed to treat COVID-19 patients in the same period of the previous fiscal year, overall domestic
sales decreased. Sales in the clinic market increased favorably and sales in the university market also increased. Sales in the public
hospital and private hospital markets decreased compared to the strong performance in the same period of the previous fiscal year.
Sales of AEDs in the PAD market also decreased. Sales of Physiological Measuring Equipment achieved double-digit growth.
Sales of Other Medical Equipment also increased, as sales of hematology instruments and installation and maintenance services
for medical devices increased favorably. Sales of Patient Monitors and Treatment Equipment decreased compared to the strong
growth in the same period of the previous fiscal year. As a result, domestic sales decreased 4.0% over the first half of FY2021 to¥62,584 million.
International: Overseas sales decreased, mainly due to a reactionary decline in sales of Patient Monitors as well as to theShanghai lockdown. In the same period of the previous fiscal year, sales of Patient Monitors were favorable due to large orders inthe U.S. and strong demand in some regions where the spread of COVID-19 had resurged. In the Americas, sales in the U.S.
decreased. Sales in Latin America also decreased, mainly in Peru and Chile where sales doubled in the same period of the previousfiscal year. Sales in Europe decreased on a comparable basis and increased on a yen basis due to yen depreciation. Sales in Franceand Turkey decreased, while sales in Germany and the U.K. increased favorably. In Asia & Other, sales in China decreased, as theCompany temporarily suspended its local production and sales activities due to the Shanghai lockdown. Sales in India, Thailand,and Malaysia also decreased compared to the same period of the previous fiscal year when sales doubled. Sales of PatientMonitors, Physiological Measuring Equipment, and Treatment Equipment decreased, while sales of Other Medical Equipment
increased. As a result, international sales decreased 14.6% over the first half of FY2021 to ¥31,764 million.
As a result of the above factors, overall sales during the term under review decreased 7.8% over the first half of FY2021 to¥94,349 million. Operating income decreased 58.6% over the first half of FY2021 to ¥7,217 million due to the decrease in sales.
The decrease in operating income was also because of a lower gross profit margin due to an unfavorable product mix, andincreased SG&A expenses, mainly due to the strengthening of human resources and the normalization of sales and service
activities. Ordinary income decreased 27.6% to ¥13,019 million and income attributable to owners of parent decreased 30.5% to¥8,541 million over the first half of FY2021, reflecting foreign exchange gains.

5. Consolidated Sales Results by Product Category(Millions of yen)Six months ended September 30, 2022

Physiological Measuring Equipment
Patient Monitors
Treatment Equipment
Other Medical Equipment
TotalProducts
Consumables and Services

Amount19,89635,964
20,68917,79994,34947,84046,508Growth rate (%)+ 10.5- 19.3
- 9.9
+ 5.7
- 7.8
- 18.2+ 6.0(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

62,584
31,764
15,238
5,902
10,624- 4.0- 14.6- 19.8+ 4.7- 15.3－3－6. Consolidated Forecast for FY2022
Based on the results for the first half of FY2022 and recent performance trends, the Company revised its forecasts for FY2022,
previously announced on May 13, 2022.
As domestic sales in the first half of FY2022 were higher than expected, and overseas sales, which were in line with its
expectation on a comparable basis, were affected by greater-than-expected depreciation of the yen in currency translation, theFY2022 full-year forecasts for overall sales, domestic sales, and overseas sales were revised to ¥208,000 million (up ¥13,000
million from its previous forecast), ¥135,000 million (up ¥4,500 million from its previous forecast), and ¥73,000 million (up¥8,500 million from its previous forecast), respectively. In Japan, demand for physiological measuring equipment and hematology
instruments was higher than expected as the number of testing and surgical procedures showed a recovery trend and capital
expenditure by medical institutions resumed in the first half of FY2022. In the second half of FY2022, the Company will focus on
its consumables and services business as well as strengthening its marketing and service capabilities and creating customer value.
Internationally, sales in the U.S. were lower than expected in the first half of FY2022, as supply of new models of mid-range
bedside monitors was delayed, mainly due to the shortage of semiconductors. Sales in China were also weak, due to the impact ofthe Shanghai lockdown. On the other hand, sales in India, Southeast Asia, and Europe were higher than expected as demand for
medical equipment remained steady. In the second half of FY2022, the Company will strengthen its offerings of new products
such as mid-range bedside monitors and a mask-type ventilator in the U.S. Both domestic sales and overseas sales in the second
half of FY2022 are expected to increase compared to the same period of the previous fiscal year.
Because sales are expected to be higher than the Company’s previous forecast, even though there will be impacts from higher
logistics costs and utility costs, operating income, ordinary income, and income attributable to owners of parent are expected to be¥19,000 million (up ¥2,500 million from its previous forecast), ¥23,500 million (up ¥7,000 million from its previous forecast), and¥16,000 million (up ¥5,000 million from its previous forecast), respectively.
The earnings forecasts are based on information currently available, which includes product supply issues due to the shortage ofsemiconductors, and certain assumptions that the Company believes are reasonable. Actual results may differ from the forecasts
due to unforeseen circumstances.
The Company’s forecast for the second half of FY2022 is based on an exchange rate of 140 yen to the U.S. dollar and 140 yen
to the euro.

(Consolidated Forecast for FY2022 by Product Category)(Millions of yen)
FY2022 (forecast)Physiological Measuring Equipment
Patient Monitors
Treatment Equipment
Other Medical Equipment
Total
Products
Consumables and Services

Amount
44,80080,10042,80040,300208,000
106,700
101,300

Growth rate (%)+ 12.9
- 5.6
- 1.4
+ 8.3
+ 1.4
- 6.9+ 11.8

(Reference) Sales by Region
Domestic Sales
Overseas SalesAmericas
EuropeAsia & Other135,000
73,00037,50011,80023,700- 1.0+ 6.1+ 12.2+ 3.1- 0.9－4－7. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)March 31, 2022
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-5-

September 30, 2022

28,92558,381
32,00030,243
3,495
14,6284,409-208
171,875

29,44053,71523,00035,3483,641
18,895
4,388-216
168,213

19,92020,604

794
2,942
3,737

982
3,311
4,293

6,225
8,651
-210
14,66738,325210,201

6,671
9,722
-213
16,18041,078209,292

24,045
325
5,669
5,013
1,245
14,50550,804

21,340
325
5,501
2,914
1,395
12,42743,905

1,073
1,943
3,016
53,820

905
2,056
2,962
46,867

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

7,544
10,436145,638-9,154
154,465

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

2,531
4,693
734
7,959
162,424
209,292

(2) Consolidated Statements of Income(Millions of yen)Six months ended
Six months ended
September 30, 2021 September 30, 2022
102,343
94,34947,85546,75254,48747,59637,07340,37917,414
7,217

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on valuation of investment securities
Foreign exchange gains
Subsidy income
Other, net
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of investment securities
Other, net
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes
Income taxes
Net income
Income attributable to owners of parent-6-

32
57
6296
47
204
645

74
64
―
5,531
34
202
5,907

3―
66
69
17,9904
29
71
105
13,019

0
0

2
20
44
―
44
17,945
5,650
12,294
12,294014445
12,975
4,434
8,541
8,541

(Consolidated Statements of Comprehensive Income)Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-7-(Millions of yen)Six months ended
Six months ended
September 30, 2021 September 30, 2022
12,294
8,541
166
716
-171
711
13,005

331
2,306
-166
2,471
11,012

13,005―

11,012―