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, 2022
Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (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（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 FY2021 (From April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results
Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.
Net sales
Millions of yen%

FY2021
205,129
FY2020199,727
Note: Comprehensive income:

2.7
8.0

Net income
per share - Basic

Millions of yen

Millions of yen%%

30,992
14.4
34,56327,09474.8
28,374FY2021: 24,750 million yen (22.9%)
Net income
per share - Diluted

yen

Return on equityyen

276.51
FY2021214.21
FY2020
Reference: Investment income for equity method:

Income attributable toowners of parent

Ordinary income

Operating income

Millions of yen%

21.8
23,43528.5
91.1
18,24385.1
FY2020: 20,143 million yen (114.2%)
Ordinary income
to total assets

Operating income
margin

％

％

％

―
―

15.9
14.0
FY2021: －million yen

17.1
15.1
15.7
13.6
FY2020: －million yen

Net assets

Equity ratio(2) Consolidated Financial Conditions
Total assets
Millions of yen

210,201
193,030

FY2021
FY2020
Reference: Equity capital:

Net assets per share

Millions of yen%

156,381
138,986
FY2021: 156,381 million yen

Yen

74.4
1,852.39
1,631.88
72.0
FY2020: 138,986 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

25,69913,945-4,303-2,946-7,300-3,00760,09544,356FY2021
FY20202. Dividends
Dividends per shareFirst quarter

Interimyen

yen

FY2020
FY2021
FY2022 (Forecast)Third quarter(Second quarter)Year-end

yen

yen

Total
dividends(Annual)Full-year

yen Millions of yen

―

17.00

―

38.00

55.00

―
―

19.00

―

48.00
20.00

67.00

20.00

―

Note: Breakdown of year-end dividends for FY2020:
Note: Breakdown of year-end dividends for FY2021:

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

%

4,684
5,661

40.00

%

25.7

3.6

24.2

3.8

30.7

Ordinary dividends: 18.00 yen
Special dividends: 20.00 yen
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

First half
Full year

Operating income

Income attributable toowners of parent

Ordinary income%

Millions of yen%

88,000 -14.0
195,000 -4.9

5,000
16,500

-71.3
-46.8

－1－

Millions of yen%

5,000 -72.2
16,500 -52.3

Millions of yen

Net income
per share - Basic%

Yen

3,500 -71.5
11,000 -53.1

41.46
130.30* 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

FY202188,730,980 shares

FY202088,730,980 shares

FY2021

4,309,526 shares

FY20203,561,589 shares

FY202184,757,441 shares

FY202085,165,330 shares(Reference) Non-Consolidated Financial Highlights
1. Non-Consolidated Financial Highlights for FY2021 (From April 1, 2021 to March 31, 2022)(1) Non-Consolidated Operating Results
Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.
Net sales

Operating income

Ordinary income

Millions of yen%

Millions of yen%

161,976-1.4
6.4

25,65014.8
59.7

FY2021
FY2020164,235

Net income per share- Basic

FY2021
FY202022,337

Millions of yen

Net income%

Millions of yen%

31,977 32.9
24,059 65.9

21,29586.1

11,444

11.5

Net income per share- Diluted

Yen

Yen

251.25―134.38―(2) Non-Consolidated Financial Conditions
Total assets

FY2021
FY2020
Reference: Equity capital:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

186,622

139,26274.6

1,649.61

173,288

125,280
FY2021: 139,262 million yen

72.3
1,470.96
FY2020: 125,280 million yen* 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 March 31, 2022), social and economic activity showed signs of recovery due tothe benefits of economic measures taken by each country and the progress of COVID-19 vaccination. However, the global
economic outlook remained uncertain due to the spread of the Omicron variant from the end of 2021, higher resource prices, thesemiconductor shortage, and the Ukraine crisis. In Japan, the number of testing and surgical procedures in medical institutions
showed a recovery trend, although depending on the wave of COVID-19 infection, and the healthcare system continued to respondto COVID-19 patients. 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, overall demand for medical
equipment was steady as medical devices to treat COVID-19 patients were installed by medical facilities and demand for nonCOVID-19-related medical devices has also shown signs of recovery.
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. The Company
introduced its first hematology analyzer with reticulocyte measurement both in Japan and internationally. The Company also
launched a central monitor which enhanced the linkage with IT systems and its first fully automatic AED in Japan. Internationally,
Nihon Kohden strengthened its business structure. The Company started operation of its reagent factory in Dubai, UAE, andacquired Advanced Medical Predictive Devices, Diagnostics and Displays, Inc. in the U.S.
As a result, overall sales during the term under review increased 2.7% over FY2020 to ¥205,129 million. Operating income
increased 14.4% to ¥30,992 million due to the increase in sales and higher gross profit margin thanks to a favorable product mix.
Ordinary income increased 21.8% to ¥34,563 million and income attributable to owners of parent increased 28.5% to ¥23,435
million.
[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 consumables and services business aswell as strengthening its marketing and service capabilities, creating customer value which contributed to improving medical
safety, patient outcomes, and operating efficiency. Sales of Patient Monitors increased favorably and demand for certain products
which had slumped in the previous fiscal year recovered. The resumption of business negotiations related to IT system solutions
also contributed to sales. Sales of locally purchased products decreased significantly as the Company focused on selling in-houseproducts. Sales in the private hospital and clinic markets increased and sales in the university hospital market remained flat. Sales
in the public hospital market decreased and sales of AEDs in the PAD market also decreased. As a result, domestic sales decreased
0.7% over FY2020 to ¥136,321 million.
International: Sales of all product categories increased as the Company succeeded in strengthening its business structure in the
U.S. and emerging countries. In the Americas, sales in the U.S. increased favorably. Sales in Latin America decreased due to areactionary decline in Columbia where sales doubled in the previous fiscal year. Sales decreased in Europe, where demand forcertain products recovered, but not enough to cover the reactionary decline compared to the strong growth in the previous fiscal
year. In Asia & Other, sales in India, Thailand, Malaysia, and Egypt doubled, and sales in China and Vietnam also increased
favorably. As a result, international sales increased 10.2% over FY2020 to ¥68,807 million.
[Sales by product category]Physiological Measuring Equipment: In Japan, sales of diagnostic information systems showed double-digit growth and sales of
ECGs also increased favorably due to the resumption of capital expenditure which had been put on hold in the previous fiscal year.
Sales of EEGs remained flat. Sales of polygraphs for cath lab recorded double-digit growth on a comparable basis, excluding theimpact of decrease in sales of locally purchased products. Internationally, sales of EEGs showed double-digit growth as demand
recovered in all regions. Sales of ECGs also increased in Asia & Other and Latin America. Overall, sales increased 5.6% over theprevious fiscal year to ¥39,681 million.
Patient Monitors: In Japan, sales of transmitters and telemetry systems showed strong growth and sales of clinical information
systems achieved double-digit growth. Sales of consumables such as sensors also increased favorably. Internationally, sales in the
U.S. and Asia & Other recorded double-digit growth. Sales in Europe and Latin America decreased, as there was a reactionary
decline compared to the previous fiscal year when demand surged. Overall, sales increased 7.7% over the previous fiscal year to¥84,860 million.
Treatment Equipment: In Japan, sales decreased, as sales of ventilators decreased due to a reactionary decline from the previous
fiscal year when demand increased. Sales of AEDs also decreased mainly due to a delay in some shipments. Internationally, salesof AEDs increased significantly as demand recovered in all regions. Sales of defibrillators also showed strong growth in Asia &####when demand
15867decline from the previous fiscal year
Other and Latin America. Sales of ventilators decreased due to a reactionary
increased, while demand increased in India and Southeast Asia. Overall, sales decreased 3.9% over the previous fiscal year to¥43,388 million.
Other Medical Equipment: In Japan, salesof locallypurchased
decreasedFY2017:
significantly,
the Company
focused on
FY2018:
9,714
million productsyen (-2.2%)
9,937asmillion
yen (7.8%)
selling in-house products. Sales of installation and maintenance services for medical devices increased favorably, and sales ofhematology instruments also increased. Internationally, sales showed strong growth, as demand for hematology analyzers andreagents recovered in all regions. Overall, sales decreased 2.6% over the previous fiscal year to ¥37,198 million.

－3－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

FY2021
Amount39,681
84,86043,38837,198205,129
114,552
90,576(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

136,32168,80733,436
11,44923,921

Growth rate (%)
+5.6
+7.7
-3.9
-2.6
+2.7
+0.6
+5.5
-0.7
+10.2
+10.4
-12.9
+25.7

6. Consolidated Forecast for FY2022
The global economic outlook is expected to recover gradually but remain uncertain. There are concerns that the shortage ofsemiconductors, higher prices of components and resources, and supply chain disruption will be prolonged. Other concerns are the
Ukraine crisis and Shanghai lockdown.
Under these circumstances, Nihon Kohden continues to implement its three-year business plan, BEACON 2030 Phase I. The
Company formulated 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 upfront investing
strategically, and iv) Establishing global SCM and strengthening core functions of operations.
The Company forecasts its overall sales, operating income, ordinary income, and income attributable to owners of parent for
FY2022 to be ¥195,000 million, ¥16,500 million, ¥16,500 million and ¥11,000 million, respectively.
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 selling in-house products as well
as strengthening its marketing and service capabilities creating customer value which contribute to improving medical safety,
patient outcomes, and operating efficiency. The number of testing and surgical procedures in medical institutions will continue torecover gradually. The Company will strengthen its offerings of consumables and services for patient monitors and ventilators, as
the number of these products installed has increased over the last two years. On the other hand, a reactionary decline in demand ofpatient monitors is expected compared to FY2021 when demand increased to treat COVID-19 patients. Overall, domestic sales are
expected to decrease by 4.3% to ¥130,500 million.
Internationally, the Company will focus on enhancing its presence in the U.S. by strengthening its local R&D, production, sales
and services structure. In Patient Monitoring Business, the Company launched mid-range bedside monitors in April 2022 and aims
at strengthening its solution proposals for large-scale monitoring network systems. In Treatment Equipment Business, demand for
AEDs will continue to recover and a next-generation automated chest compression machine which is now under development will
be launched in the U.S. The Company will also start the U.S. local production of a mask-type ventilator which was developed inJapan. In Europe and Asia & Other, demand for medical devices to treat COVID-19 patients is expected to settle down. Overall,international sales are expected to decrease by 6.3% to ¥64,500 million.
Nihon Kohden will undertake capital investments for promoting corporate DX by introducing PLM/MES systems. The
Company aims at improving its productivity by establishing new common design platforms and optimizing its entire productlifecycle. The Company will also increase its production capacity for SpO2 probe and EMG electrode for neuromuscularmonitoring in Japan, and establish a new hematology reagent factory in India.
* PLM: Product Life-cycle Management, MES: Manufacturing Execution System.
Operating income, ordinary income, and income attributable to owners of parent are expected to decrease over the previous
fiscal year because of a lower sales forecast than FY2021, lower gross profit margin due to an unfavorable product mix, and higher
prices of components and utility costs.
The earnings forecasts described above include the impact of the shortage of semiconductors, higher prices of components andresources, supply chain disruption, Ukraine crisis, and Shanghai lockdown. The Company takes account of negative impacts ofaround 4 billion yen on sales and 2 billion yen on operating income, based on the assumption that the product supply issues due tothe shortage of semiconductors and Shanghai lockdown will continue until the end of the first half of FY2022. Negative impact ofaround 1.5 billion yen on gross profit margin is also factored in, based on the assumption that higher prices of components andutility costs will continue until the end of FY2022. Actual results may differ from the forecasts due to unforeseen circumstances.
The Company's forecast for FY2022 is based on an exchange rate of 117 yen to the U.S. dollar and 130 yen to the euro.

－4－

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

FY2022 (Forecast)AmountGrowth rate (%)+3.6
41,100-10.6
75,900-5.5
41,000-0.5
37,000
195,000-4.9
100,200-12.5
94,800+4.7(Reference) Sales by Region
Domestic Sales
Overseas Sales
Americas
EuropeAsia & Other

130,500
64,50034,40010,10020,000

-4.3
-6.3
+2.9
-11.8
-16.4

<Impact of Ukraine crisis and Shanghai lockdown on financial results>
The impact of Ukraine crisis on consolidated results will be minor, as sales in Russia and Ukraine are less than 10% of sales in
Europe and less than 1% of overall sales. Shanghai Kohden has closed its offices due to lockdown in Shanghai since March 28,
2022, but some shipments have been continued on a limited basis for urgent cases. R&D and sales divisions have continued
teleworking, and the resumption of production is currently being prepared. Sales in China are around 30% of sales in Asia &Other and around 3% of overall sales.

7. 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 maintain stable and continuous dividend payments while retaining necessary reserves
for future business expansion. The priority for distribution of profits is i) investment necessary for future business expansion usedin R&D investments, capital investments, M&A or alliances, and development of human resources, ii) dividends, and iii) sharebuybacks. The Company sets a target consolidated dividend payout ratio of 30% or more. Share buyback is considered in a
flexible manner, taking into account comprehensively the Company’s future business deployment, investment plan, retained
earnings, and stock price level.
Because Nihon Kohden celebrated the 70th anniversary of its founding on August 7, 2021, and the business performance in
FY2021 was favorable, the Company decided to pay a commemorative dividend of 13 yen per share, and a special dividend of 15
yen per share, in addition to the ordinary year-end dividend of 20 yen per share, as a return to shareholders. As a result, the fullyear dividend for FY2021 will be 67 yen per share, including the interim dividend of 19 yen per share. As described in the press
release regarding the acquisition of own shares and cancellation of treasury shares announced today, the Company will acquire its
own shares up to 1.0 billion yen between May 16, 2022 and June 30, 2022 and cancel 500,000 shares of its treasury shares onJune 10, 2022.
In consideration of business performance, the full-year dividend for FY2022 will be 40 yen per share, which consists of interim

8. 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 that
15867aimed at improving the soundness, transparency,
22.3
enhancing corporate governance, by establishing a management structure
andefficiency of management, is an important management issue. The Board of Directors consists of twelve directors (including four
outside directors) and independent outside directors comprise one-third of the Board. Considering the issues of gender andinternational diversity, one female outside FY2018:
director andtwomillion
femaleyen
operatingare appointed.
9,714(-2.2%)officersFY2017:
9,937 million yen (7.8%)
The Company has adopted a Company with Audit & Supervisory Committee 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 four 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 10% in its three-year business plan, BEACON 2030 Phase I starting from April 2021.
In order to achieve the target, the Company will focus on improving its profitability by implementing its three-year businessplan. The Company will also improve efficiency of assets by measures such as reduction of inventories as well as enhanceshareholder return.

－5－(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.
・Three-year Business Plan, BEACON 2030 Phase I, covering the fiscal years 2021 to 2023
The Company’s three-year business plan, BEACON 2030 Phase I is the stage to strengthen its business foundation towardrealizing its long-term vision. The Company works on improving the profitability of existing businesses and cultivating new
business areas and business models.
1. Basic policy
・Embrace sustainability across business and corporate activities
・[Management] Ensure strict compliance and strengthen group governance・[Business] Improve the profitability of existing businesses and obtain the resources to invest strategically for sowing seeds of
new growth・[Operations] Establish global SCM and strengthen core functions of operations to lay a foundation for global growth
2. Embrace sustainability
The Nihon Kohden Group defined 12 material issues to be addressed through business and corporate activities in accordancewith the SDGs. In our business activities, we will address 8 issues aimed at realizing the 5 visions for the future (Accessible/
Intelligent/Patient oriented/Connected/Optimized) which we designated in BEACON 2030. In corporate activities, we will address
4 issues of Human rights/Human resources, Quality, Governance, and Environment.
3. Six key strategies(1) [Management] Ensure strict compliance and strengthen group governance
The Company will establish and promote global management policy as well as strengthening internal control over domestic sales.
(2) [Business] Improve the profitability of existing businesses
The Company aims to improve the profitability of existing businesses through creating high customer value, enhancing
productivity, and timely launch of new products.
(3) [Business] Strengthen strategies in global business
The Company will focus on Japan, the U.S., and China, and establishes Global Quad-Polar Organization together with Europe &Emerging markets. The Company strengthens strategies in each region.
(4) [Business] Create new customer value by digital health solutions
The Company will establish a vital sign data platform for integration and analysis of data and develop clinical support applications
for improving patient outcomes and economy of medical care.
(5) [Operations] Promote corporate digital transformation
The Company will establish a global information system and communication system in order to promote work-style reforms andimprove operating efficiency.
(6) [Operations] Establish global supply chain management
Fumio Izumida, General Manager, Corporate Strategy Division
The Company will realize supply chain data visualization by DX and reform its operational processes in procurement, production,and logistics.
4. Human resource development and corporate culture reform
In accordance with its Core Values (Integrity/Humbleness/Diversity/Initiative/Customer Centric/Goal Oriented/Creativity),
Nihon Kohden is introducing a new personnel system and enhancing its global human resource development programs to foster a
corporate culture in which employees take pride in contribution to healthcare and mission.
5. BEACON 2030 Phase I targets for FY2023 ending March 2024 (consolidated)¥100 million
Sales
Domestic Sales
Overseas Sales
Operating Income
Operating Income Margin
ROE

Target in FY2023
1,970
1,340
630
200
10.2%
10%

－6－

<The progress of BEACON 2030 Phase I>
In FY2021, which was the first year of this plan, demand for certain products and consumables recovered both in Japan andinternationally from the previous fiscal year when demand was weak due to the COVID-19 pandemic. Demand for medical devices
to treat COVID-19 patients exceeded its initial expectation due to the spread of the variants. Under these circumstances, the Nihon
Kohden Group has worked on implementing reforms to its supply chain management by promoting collaboration across all
divisions such as R&D, procurement, production, logistics, and sales divisions to respond to the shortage of semiconductors aroundthe world. Because the Company has continued to supply products globally, Nihon Kohden posted record highs both in sales andprofits in FY2021. In Japan, the Company strived to sell in-house products for creating customer value which resulted in improved
gross profit margin reflecting favorable product mix. As a result, the Company achieved a highly profitable structure. Internationally,
the Company focused on consumables and services business by leveraging its increased product installations such as patientmonitors. The Company also strengthened its business structure in the U.S. and Asia. In the U.S, the enhanced local R&D, sales andservice capabilities enabled us to win the opportunity for installing a large-scale of our patient monitoring network systems in a newbuilding of one of the U.S. top hospitals, and strengthen Nihon Kohden’s presence in the U.S. market. In addition, the Company
acquired Advanced Medical Predictive Devices, Diagnostics and Displays, Inc. to enhance its R&D capacity for developing digital
health solutions (DHS), which the Company defined as a new business in its three-year business plan. In India, the enhanced local
sales and service capabilities enabled us to receive large orders for patient monitors, increase the installations of hematology
instruments thanks to new products, and strengthen Nihon Kohden’s presence in the Indian market.
In FY2022, which is the second year of this plan, Nihon Kohden continues to focus on the stable supply of products byimplementing SCM reforms, as there are many uncertainties such as the ongoing shortage of semiconductors, Ukraine crisis, andShanghai lockdown. The Company also aims at achieving a highly profitable structure that can regularly secure a gross profit
margin of 50% or more and an operating income margin of 10% or more.

Fumio Izumida, General Manager, Corporate Strategy Division－7－9. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)March 31, 2021
ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
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
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-8-

March 31, 2022

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

28,925―
5,354
53,02732,00030,243
3,495
14,6284,409-208
171,875

11,342
1,443
3,238
3,479
52
637
20,193

10,964
1,321
3,623
3,423
33
553
19,920

431
1,898
2,329

794
2,942
3,737

6,418
5,758
2,353
-165
14,36636,889193,030

6,225
6,264
2,387
-210
14,66738,325210,201

(Millions of yen)March 31, 2021
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-9-March 31, 2022

24,412
350
3,721
11
7,915
3,876
4,691
1,116
4,511
50,60824,045
325
4,408
10
5,669
4,132
5,013
1,245
5,953
50,804

43
1
1,852
1,538
3,436
54,044

24
272
1,073
1,646
3,016
53,8207,544
10,437
123,796-6,966
134,812

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

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

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

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

Year ended
March 31, 2021

Year ended
March 31, 2022

Net sales
Cost of sales

199,727
97,493205,129
96,043Gross profit
Selling, general and administrative expenses

102,233
75,138109,085
78,093Operating income
Non-operating income

27,09430,992

Interest income
Dividend income

86
112

132
107

Foreign exchange gains
Subsidy income

472
514

3,175
63

3
234
1,424

―
393
3,872

8
―
136
145
28,374

11
80
209
301
34,563

0
464
132
596

18
6
―
25

0

0

Loss on retirement of non-current assets

69

58

Impairment losses
Loss on valuation of investment securities

388
―

―
265

1,185
161
1,805

―
―
324

Income before income taxes
Income taxes - current

27,166
9,470

34,263
11,135

Income taxes - deferred
Total income taxes

-547
8,922

-308
10,827

Net income
Income attributable to owners of parent

18,243
18,24323,43523,435Gain on valuation of investment securities
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of investment securities
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on termination of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets

Amortization of goodwill
Office transfer cost
Total extraordinary losses- 10 -

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

Year ended
March 31, 2021
Net income
Other comprehensive income

Year ended
March 31, 2022

18,24323,435

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

186
102

41
1,301

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

1,611
1,899

-28
1,314

20,14324,75020,14324,750――Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests- 11 -

(3) Consolidated Statements of Cash Flows(Millions of yen)
Year ended
March 31, 2022

Year ended
March 31, 2021
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 reserve for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in net defined benefit 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
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- 12 -

27,166
3,236
1,307
388
70
0
3
1,416
744
-50
-199
8
-342
-3
-464
-7,170-9,313
430
-705
1,754
18,275165-2-4,493
13,94534,263
3,422
68
―
33
8
-11
284
47
-820
-239
11
-2,076345-612,506-7,557-1,768-24-131
38,355213-2-12,868
25,699841-159
14-2,923
-461

14
-86
75
-2,450
-484

―

-929

-257
-2,946-442-4,303―-1-2,979-26-3,007451
8,442
35,91344,356-25-2,400-4,842-31-7,3001,643
15,73944,35660,095(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
Predictive Devices, Diagnostics and Displays, Inc. ("AMP3D")
FY2021 3QMedical(9 months)(6) Shareofvotingrights
FY2020 3Q (9 months)acquired
137046
5.8
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
104.302. Business term of the acquired company included in the Consolidated Statement of Income for the full year of
FY2021 (12 months)
From August 9, 2021 to December 31, 2021
3. Acquisition cost for the acquired company and breakdown thereof(Millions of yen)
Payment for acquisition of stocks
964
Acquisition related costs such as advisory fees77
1,042
Acquisition cost

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 acquisitionin the business 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 amount and its amortization.
5. Amount of goodwill incurred, reasons and amortization method
The Company recognized goodwill of ¥ 413 million and it is amortized by straight-line method over the term of 10
years. Goodwill is calculated based on the projected future excess earnings through future business development.
6. Total amounts and principal breakdowns of assets received and liabilities assumed on the effective date of thebusiness combination

Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities(Millions of yen)
37
0
38
281
281

- 13 -

7. Detail of amounts allocated to intangible assets other than goodwill and their amortization period

Technology-related assets
SoftwareTotal intangible assets other than goodwill(Millions of yen)
956 (Amortization period 10 years)
114 (Amortization period 3 years)
1,070 (Weighted-average amortization period 9 years)

8. Estimated impact of business combination on the consolidated income statements for the current consolidated fiscal
term in the hypothetical case that the business combination were completed on the first day of said term; method
for calculating such
This information is omitted due to immateriality.

- 14 -