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.

February 2, 2023

[Summary] Consolidated Financial Results for the 3rd 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 3rd Quarter of FY2022 (From April 1, 2022 to December 31, 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

11,377 -51.2-2.4
23,316 49.6
FY2021 3Q (9 months)
8.0
Note: Comprehensive income:
FY2022 3Q: 11,512 million yen (-34.8%)
Net income per share
Net income per share- Basic- Diluted
FY2022 3Q (9 months)

FY2022 3Q (9 months)
FY2021 3Q (9 months)

144,557
148,078

Yen

Yen

105.25199.36――

Income attributable toowners of parent

Ordinary income%Millions of yen

13,937
24,677(2) Consolidated Financial Conditions

As of December 31, 2022
As of March 31, 2022

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

206,011210,201

Reference: Equity Capital:

161,242
156,381
FY2022 3Q: 161,242 million yen

Net assets per share
Yen

78.3
74.4
FY2021: 156,381 million yen

1,916.67
1,852.39

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

First quarter

Full-year

Year-endyenyenyenyenyen

FY2021

―

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)

Millions of yen

Income attributableto owners of parent% Millions of yen%

Operating income Ordinary income

Net sales% Millions of yen

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

19,000%Millions of yen-38.7

20,500－1－-40.7

%

8,860
-43.5
-47.6
16,91167.9
90.4
FY2021 3Q: 17,647 million yen (98.5%)

13,500-42.4

Net income pershare - Basic
Yen

160.47

* 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 3Q

88,230,980

shares

FY202188,730,980

shares

FY2022 3Q

4,104,592

shares

FY2021

4,309,526

shares

FY2022 3Q

84,184,348

shares

FY2021 3Q

84,829,234

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 December 31, 2022), the overall global economy showed signs of recovery dueto the Living with COVID-19 policies taken by each country. However, the global economic outlook remained uncertain due tohigher prices of components and resources, supply chain disruption, and tight monetary policy in the U.S. and Europe. In Japan,
the burden on medical institutions fluctuated in accordance with the number of COVID-19 patients. Changes to the healthcare
system to respond to emerging infectious diseases and work style reforms for medical staff were also implemented in conjunction
with the medical treatment fee revision that occurred in April 2022. Medical equipment companies were strongly required toprovide solutions which contribute to infection control measures as well as improving the quality and efficiency of medical care.
Internationally, overall demand for medical equipment which contributes to improving the quality and efficiency of medical careremained steady amid the growing shortage of nurses especially in the U.S. and the U.K.
Under these circumstances, Nihon Kohden implemented its Three-year Business Plan, BEACON 2030 Phase I. The Company
formulated the basic policies of the plan as follows: i) Embracing sustainability across business and corporate activities, ii)
Ensuring strict compliance and strengthening group governance, iii) Improving the profitability of existing businesses and making
strategic upfront investments, and iv) Establishing global SCM and strengthening core functions of operations.
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 by
medical 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. 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 andTreatment Equipment decreased. As a result, domestic sales decreased 3.1% over the nine months of FY2021 to ¥93,569 million.
International: Overseas sales decreased, mainly due to a reactionary decline in sales of Patient Monitors compared to strong
demand in the same period of the previous fiscal year in regions where the spread of COVID-19 had resurged, as well as to theShanghai lockdown. In the third quarter (three months), sales in all regions achieved double-digit growth thanks to the launch of
new mid-range bedside monitors in the U.S. and yen depreciation. In the Americas, sales in the U.S. increased. Sales in Latin
America decreased, mainly in Mexico and Chile. Sales in Europe decreased on a comparable basis and increased on a yen basis.
Sales in France and Turkey decreased, while sales in Germany and the U.K. increased favorably. Sales in Asia & Other decreased
due to the reactionary decline in China, Vietnam, and Egypt where sales showed strong growth in the same period of the previous
fiscal year. Sales of Patient Monitors decreased, while sales of Other Medical Equipment, Treatment Equipment, andPhysiological Measuring Equipment increased. As a result, international sales decreased 1.0% over the nine months of FY2021 to¥50,987 million.
As a result of the above factors, overall sales during the term under review decreased 2.4% over the nine months of FY2021 to¥144,557 million. Operating income decreased 51.2% over the nine months of FY2021 to ¥11,377 million due to the decrease insales. The decrease in operating income was also because of a lower gross profit margin due to higher prices of components and an
unfavorable product mix, as well as increased SG&A expenses, mainly due to the strengthening of human resources and thenormalization of sales and service activities. Ordinary income decreased 43.5% to ¥13,937 million and income attributable toowners of parent decreased 47.6% to ¥8,860 million over the nine months of FY2021, reflecting foreign exchange gains.

5. Consolidated Sales Results by Product Category(Millions of yen)
Nine months ended December 31, 2022

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

Amount30,382
55,97031,88726,316
144,557
73,61870,938Growth rate (%)+ 10.7- 10.3- 3.8+ 5.1- 2.4- 9.8+ 6.8(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

93,56950,98725,334
9,399
16,254- 3.1- 1.0- 0.1+ 8.3- 6.8－3－

6. Consolidated Forecast for FY2022
The Company reaffirmed its full-year forecasts for overall sales and operating income, previously announced on November 9,2022. As foreign exchange gains are expected to be smaller reflecting the updated exchange rate assumption to yen appreciation
for the fourth quarter, the Company revised its forecasts for ordinary income and income attributable to owners of parent to be¥20,500 million (down ¥3,000 million from its previous forecast) and ¥13,500 million (down ¥2,500 million from its previousforecast), respectively.
The Company’s forecast for the fourth quarter of FY2022 is based on an exchange rate of 130 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
TotalProducts
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 Sales
Americas
EuropeAsia & Other

135,000
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, 2022ASSETS
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-

December 31, 2022

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

40,72455,6533,000
35,0794,244
21,035
5,212-212
164,738

19,92020,621

794
2,942
3,737

1,074
3,219
4,294

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

6,944
9,629
-215
16,357
41,273206,01124,045
325
5,669
5,013
1,245
14,50550,80422,961433
1,335
1,9241,366
13,881
41,902

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

827
2,039
2,867
44,7697,544
10,455142,224-9,331150,893

7,544
10,436144,275-9,155
153,102

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

2,682
4,806
651
8,140
161,242
206,011(2) Consolidated Statements of Income

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
Other, net
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
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-

Nine months ended
December 31, 2021
148,078
68,88979,18855,872
23,316(Millions of yen)
Nine months ended
December 31, 2022
144,557
71,06173,496
62,118
11,377

62
97
3979
64
262
1,470

126
108
67
2,058
36
310
2,707

4
104
108
24,6775
142
147
13,937

0
―
02
3
60
49
―
49
24,628
7,716
16,911
16,9110
8
44
52
13,890
5,030
8,860
8,860

(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 incomeComprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-7-(Millions of yen)
Nine months ended Nine months ended
December 31, 2021 December 31, 2022
16,911
8,860
165
827
-257
735
17,647

482
2,418
-249
2,652
11,512

17,647―

11,512―