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 8, 2021

[Summary] Consolidated Financial Results for the 2nd Quarter of the Fiscal YearEnding March 31, 2022 (Japan GAAP)NIHON KOHDEN CORPORATION (6849)
1st Section Tokyo Stock Exchange
Tokyo
Hirokazu Ogino, Representative Director, President
Keichiro Yoshizawa, 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 2nd Quarter of FY2021 (From April 1, 2021 to September 30, 2021)(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

17,414 98.8
17.3
8,758 24.9
FY2020 2Q (6 months)-2.8Note: Comprehensive income:
FY2021 2Q: 13,005 million yen (98.2%)
Net income per share
Net income per share- Basic- Diluted
FY2021 2Q (6 months)

FY2021 2Q (6 months)
FY2020 2Q (6 months)

102,343
87,240Yen

Yen

144.85
68.42―

Income attributable toowners of parent

Ordinary income%

Millions of yen―(2) Consolidated Financial Conditions

As of September 30, 2021
As of March 31, 2021

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

189,754
193,030

Reference: Equity Capital:

Net assets per share
Yen

77.5
72.0
FY2020 : 138,986 million yen

147,144
138,986
FY2021 2Q: 147,144 million yen

1,737.00
1,631.88

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

First quarter

Year-end

Full-year

yen

yen

yen

yen

yen

FY2020

―

17.00

―

38.00

55.00

FY2021

―

19.00
―

20.00

39.00

FY2021 (Forecast)

Note: Revise of dividends forecast: None
Note: Breakdown of year-end dividends for FY2020:

Ordinary dividends: 18.00 yen

Special dividends: 20.00 yen

3. Consolidated forecast for FY2021 (From April 1, 2021 to March 31, 2022)
Net sales
Millions of yen

Income attributableto owners of parent% Millions of yen%

Operating income Ordinary income% Millions of yen

Full year
201,000
0.6
Note: Revise of consolidated forecast: Yes

25,500%Millions of yen-5.9

25,500

－1－

-10.1

%

17,990 119.0
12,294111.0
8,215 29.7
5,826
47.8
FY2020 2Q: 6,561 million yen (101.0%)

17,500-4.1

Net income pershare - Basic
Yen

206.58

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

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

FY2021 2Q

88,730,980

shares

FY202088,730,980

shares

FY2021 2Q

4,019,276

shares

FY20203,561,589

shares

FY2021 2Q

84,879,678

shares

FY2020 2Q

85,161,781

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－

4. Review of Operations
During the term under review (April 1, 2021 to September 30, 2021), social and economic activity showed signs of recovery
due to the benefits of economic measures taken by each country and the progress of COVID-19 vaccination. However, the pace ofeconomic recovery was slowed down in some regions due to the spread of more infectious coronavirus variants. In Japan, thenumber of COVID-19 patients increased significantly and the Government implemented measures to support the healthcare
system by enacting budgets and special measures in relation to medical treatment fees. The number of testing and surgicalprocedures, which had been on a recovery trend in the first quarter (April to June), remained low in the second quarter (July to
September). Medical equipment companies were strongly required to provide solutions which contribute to infection control
measures as well as improving quality and efficiency of medical care. Internationally, medical equipment to treat COVID-19
patients was installed by medical facilities in regions where the spread of infection has resurged.
Under these circumstances, Nihon Kohden started its three-year business plan, BEACON 2030 Phase I, in April 2021. The
Company formulated the basic policies 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 strengthened its marketing and service capabilities, creating customer value which contributed to improving medical safety,
patient outcomes, and operating efficiency. Accordingly, sales in all markets increased favorably. Sales also increased because
demand for certain products recovered from the decrease that occurred in the same period of the previous fiscal year. Furthermore,business negotiations related to IT system solutions resumed, after the previous fiscal year when medical institutions postponed orfroze their purchase budgets. In particular, sales in the public hospital and private hospital markets showed strong growth, due inpart to the installation of patient monitors and ventilators supported by the Government’s budget. Sales of Patient Monitors andTreatment Equipment achieved double-digit growth, and sales of Physiological Measuring Equipment also increased favorably.
Sales of Other Medical Equipment decreased. As a result, domestic sales increased 15.9% over the first half of FY2020 to ¥65,164
million.
International: Sales increased favorably driven by large orders for patient monitors in the U.S. where the Company has focusedon expanding its market share. In all regions, demand for certain products recovered from the decrease that occurred in the same
period of the previous fiscal year. Another reason for the increased sales was that demand for patient monitors increased in someregions where the spread of COVID-19 has resurged. In the Americas, sales in both the U.S. and Latin America achieved doubledigit growth. In Latin America, sales in Brazil, Peru, and Chile showed strong growth. Sales decreased in Europe, where demandfor certain products recovered, but not enough to cover the reactionary decline compared to the strong growth in the same periodof the previous fiscal year. In Asia & Other, sales in India, Thailand, and Malaysia doubled and sales in China and Vietnam also
increased favorably. Sales in all product categories achieved double-digit growth. In Treatment Equipment, sales of AEDs
recovered and sales of defibrillators increased favorably. Sales of ventilators decreased as there was a reactionary decline
compared to the same period of the previous fiscal year when demand surged due to the spread of COVID-19. As a result,international sales increased 20.0% over the first half of FY2020 to ¥37,178 million.
As a result, overall sales during the term under review increased 17.3% over the first half of FY2020 to ¥102,343 million.
Operating income increased 98.8% over the first half of FY2020 to ¥17,414 million due to the increase in sales and higher grossprofit margin thanks to a favorable product mix. Ordinary income increased 119.0% over the first half of FY2020 to ¥17,990
million, reflecting foreign exchange gains compared to losses in the same period of the previous fiscal year. Income attributable toowners of parent increased 111.0% over the first half of FY2020 to ¥12,294 million.

5. Consolidated Sales Results by Product Category(Millions of yen)Six months ended September 30, 2021

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

Amount17,99844,54622,965
16,832
102,343
58,47643,866Growth rate (%)+ 10.1+ 27.0+ 18.8+ 2.0+ 17.3+ 23.5+ 10.0(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

65,16437,17818,9995,635
12,542+ 15.9+ 20.0+ 23.2- 9.4+ 34.1－3－

6. Consolidated Forecast for FY2021
Based on the results for the first half of FY2021 and recent performance trends, the Company revised its forecasts for FY2021,
previously announced on August 4, 2021.
As both domestic and overseas sales in the first half of FY2021 were higher than expected, the FY2021 full-year forecasts foroverall sales, domestic sales, and overseas sales were revised to ¥201,000 million (up ¥10,500 million from its previous forecast),¥136,500 million (up ¥6,000 million from its previous forecast), and ¥64,500 million (up ¥4,500 million from its previous
forecast), respectively. In Japan, demand for patient monitors and ventilators exceeded the Company’s expectation due to theresurgence of COVID-19 in the first half of FY2021. Demand for certain products recovered and business negotiations related toIT system solutions resumed. Accordingly, both sales of medical devices, and consumables and services, increased favorably.
However, a reactionary decline is expected in the second half of FY2021 compared to the same period of the previous fiscal year
when demand surged. Internationally, sales increased favorably in the first half of FY2021, as demand for certain products
recovered from the decrease that occurred in the same period of the previous fiscal year. Other reasons for favorable sales werethat the delivery of patient monitors in the U.S. was ahead of schedule and that demand for patient monitors exceeded theCompany’s expectations in Latin America, India, and Southeast Asia due to the resurgence of COVID-19. In the second half of
FY2021, a reactionary decline is expected in some regions such as Europe and Latin America where demand surged in the same
period of the previous fiscal year.
Because sales are expected to be higher than the Company’s previous forecast and the product mix will be favorable, eventhough there will be impacts from price increases for components and higher logistics costs, operating income, ordinary income,and income attributable to owners of parent are expected to be ¥25,500 million (up ¥7,500 million from its previous forecast),¥25,500 million (up ¥7,500 million from its previous forecast), and ¥17,500 million (up ¥5,500 million from its previous forecast),
respectively. In view of its robust earnings in the first half of FY2021, the Company will strive to strengthen the core functions of
its operation.
The earnings forecasts described above includes the impact of the spread of coronavirus variants, shortages of semiconductors,
and delay in supply of components from Southeast Asia, based on information currently available to the Company at this moment.
The Company’s forecast for the second half of FY2021 is based on an exchange rate of 110 yen to the U.S. dollar and 130 yen
to the euro.

(Consolidated Forecast for FY2021 by Product Category)(Millions of yen)
FY2021 (forecast)Physiological Measuring Equipment
Patient Monitors
Treatment Equipment
Other Medical Equipment
Total
Products
Consumables and Services

Amount40,60080,75041,45038,200201,000
109,600
91,400Growth rate (%)
+ 8.0
+ 2.5
- 8.1
+ 0.0
+ 0.6
- 3.7
+ 6.4

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

136,500
64,50031,50010,00023,000

- 0.6
+ 3.3
+ 4.0
- 23.9+ 20.9－4－

7. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)March 31, 2021
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, 2021

30,60968,612
14,00027,965
2,326
8,594
4,256
-225
156,140

23,85655,78828,00026,9902,601
10,4643,790-251
151,240

20,193

19,558

431
1,898
2,329

824
2,869
3,693

6,418
8,112
-165
14,36636,889193,030

6,728
8,696
-163
15,261
38,513
189,754

24,412
350
7,915
4,691
1,116
12,12150,60818,847
350
4,915
2,711
835
11,42939,089

1,852
1,583
3,436
54,044

1,665
1,855
3,520
42,6097,544
10,437
123,796-6,966
134,812

7,544
10,455
132,692-8,432
142,259

2,158
1,085
929
4,173
138,986
193,030

2,324
1,801
757
4,884
147,144
189,754

(2) Consolidated Statements of Income(Millions of yen)Six months ended
Six months ended
September 30, 2020 September 30, 2021
87,240102,343
42,88347,85544,35754,48735,59937,073
8,758
17,414

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
Foreign exchange losses
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
Office transfer cost
Total extraordinary losses
Income before income taxes
Income taxes
Net income
Income attributable to owners of parent

-6-

12
60
―
―
204
101
378

32
57
6
296
47
204
645

3
10
825
82
921
8,215

3
―
―
66
69
17,990

0
0

0
0

0
22
34
57
8,157
2,330
5,826
5,826

0
44
―
44
17,945
5,650
12,294
12,294

(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, 2020 September 30, 2021
5,826
12,294
840
-231
125
734
6,561

166
716
-171
711
13,005

6,561―

13,005―

(Additional Information)
As the Company announced on November 4, 2021, the Company has discovered that a former employee of a sales officeof Nihon Kohden was involved in acts of misconduct in business transactions in Japan.
Following the discovery of this case, Nihon Kohden established a internal investigation committee and has conducted athorough investigation. According to the internal investigation, one former employee engaged in acts of misconduct inbusiness transactions as follows: this former employee procured more network devices and other goods than necessary,delivered the proper quantity of those goods to the customers, and then illegally obtained money by reselling surplus goods
for personal use, causing damage to the Company. The internal investigation confirmed that this former employee had
illegally acquired goods worth a total of approximately ¥40 million.
As far as its internal investigation is concerned, the Company expects that the impact of this case on the consolidated
forecast for FY2021 ending March 31, 2022 is to be minor.

(Notes on Business Combination)
Business combination through acquisition
1. Overview of business combination(1) Name of acquired company and operations
Name of acquired company Advanced Medical Predictive Devices, Diagnostics and Displays, Inc. ("AMP3D")
Business
Research and development of algorithms and software for patient condition
management(2) Main reason for business combination
Reinforcement of technological development capabilities in the digital health solutions (DHS) fieldby combining the Company's core human machine interface (HMI) technology with AMP3D's algorithms
and software technology for patient condition management(3) Date of business combination
August 9, 2021
(4) Legal form of business combination
Acquisition of ownership for cash(5) Name of company after business combination
Advanced Medical Predictive Devices, Diagnostics and Displays, Inc. ("AMP3D")(6) Share of voting rights acquired
100%(7) Basis of determination of acquiring company
Acquisition of ownership for cash by Nihon Kohden Digital Health Solutions, Inc., one of Nihon Kohden's subsidiaries
2. Business term of the acquired company included in the Consolidated Statement of Income for the second quarter of
FY2021 (6 months)
The acquisition date is August 9, 2021 which is in the third quarter of AMP3D's fiscal year ending on December 31. Since
the difference between the acquisition date and the Company's second quarter closing date does not exceed three months, theoperational result of AMP3D is not included in the Consolidated Statement of Income for the second quarter of FY2021.
3. Acquisition cost for the acquired company and breakdown thereof(Millions of yen)
Payment for acquisition of stocks
966
Acquisition related costs such as advisory fees
57
1,023
Acquisition cost
The amount is provisional based on available rational information since the acquisition price has not been finalized.
4. Contents of the condition clause for the acquisition cost under an acquisition agreement and its accounting method
hereafter
There is the escalation clause that adjusts the acquisition cost based on the results of operations after the acquisition in thebusiness combination agreement. If additional payment is required based on the clause, the acquisition cost will be revised
assuming that the additional payment had been made at the time of acquisition and the Company adjusts the goodwill amountand its amortization.
5. Amount of goodwill incurred, reasons and amortization method
The Company recognized goodwill of ¥ 414 million and it is amortized over the term within 20 years. The amount isprovisional based on available rational information since the acquisition price has not been finalized and the acquisition priceallocation has not been finalized. Goodwill is calculated based on the projected future excess earnings through future businessdevelopment.

-8-