Business Results for the First Three Monthsof fiscal year ending March 31, 2025

EIKEN CHEMICAL CO., LTD. (Code: 4549)
July 31, 2024

Earnings highlight for the first three months ofthe FY ending March 31, 2025

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Earnings highlight for the first three months of the fiscal year ended March 31, 2025
Executive summary for the first three months of the fiscal year ended March 31, 2025

• External environment✓ Decrease of demand for COVID-19 detection kits
✓ Downside risks mainly caused by surging global resource prices and the impact of monetary tightening✓ Rising costs such as for logistics and raw material procurement, etc., on account of yen depreciation andhigh crude oil prices• The Company’s business results✓ Net sales decreased due to the timing of orders for fecal immunochemical tests (FIT) reagents in various
countries, the drop in demand for COVID-19 detection kits, and LAMP patent expiration, etc.
✓ On the other hand, performance of Urinalysis test strips was well because of the acquisition of newdomestic customers and increased sales to overseas markets.
✓ Profits decreased due to changes in sales mix and increased SG&A expenses.

• Other✓ Construction of new manufacturing building at Nogi Division.
✓ Decided to relocate head office.
✓ Efforts to increase domestic screening participation rates. Public health information website launched.
✓ Continuously selected as a constituent of FTSE Blossom Japan Sector Relative Index.

3

Consolidated financial highlights
Decrease in sales because domestic sales were steady, but overseas sales declined.
Decrease in profit due to changes in sales mix because of decline in sales of high-profit products and patent fee income, and increased
SG&A expenses (used as planned).

FY ended Mar. 31, 2024
(Millions of yen)

Percentage of netsales

FY ended Mar. 31, 2025
(Millions of yen)

Percentage of net sales

YoY(Millions of yen)

Change9,864

100.0%

9,519

100.0%

-345

-7.4%

Japan

7,341

74.4%

7,405

77.8%

64-13.2%

Europe892

9.0%

692

7.3%

-200

+51.3%

North America

585

5.9%

462

4.9%

-123

-3.0%

Asia/Oceania/Other

1,046

10.6%

959

10.1%

-87

+1.1%

Cost of sales

5,681

57.6%

5,566

58.5%

-115

+2.5%

Gross profit

4,183

42.4%

3,953

41.5%

-230

-18.4%

Selling, general andadministrative

3,130

31.7%

3,369

35.3%

239

+2.3%

Operating profit

1,052

10.7%

583

6.1%

-469

-54.7%

Ordinary profit

1,087

11.0%

641

6.7%

-446

-52.8%

770

7.8%

486

5.1%

-284

-54.1%Net sales

Net profit

4Earnings by segment—YoY change
The main product, fecal immunochemical tests (FIT) reagents, performed steady in Japan, but overseas sales decreased due to thetiming of orders, etc.
Molecular test sales decreased due to the decline in demand for COVID-19 tests and the expiration of patents.
On the other hand, urinalysis test strips/ immunological and serological reagents sales increased because of increase in the number offacilities using the products.

FY ended Mar. 31, 2024

FY ended Mar. 31, 2025

(Millions of yen)

(Millions of yen)

Composition

Composition

YoY(Millions of yen)

ChangeFecal immunochemical
tests (FIT) reagents

3,452

35.0%

3,121

32.8%

-331

-9.7%

Immunological and serologicalreagents

2,381

24.1%

2,481

26.1%

100-1.4%

99210.1%

1,122

11.8%

130

+6.2%

1,038

10.5%

1,058

11.1%

20+9.5%

Clinical chemistry test reagents

150

1.5%

151

1.6%

1-2.5%

Equipment/culture mediums
related to food and environment

480

4.9%

512

5.4%

32

+6.7%

Molecular test (LAMP)

551

5.6%

232

2.4%

-319

-64.2%

Medical devices/Others

817

8.3%

841

8.8%

24+2.1%

9,864

100.0%

9,519

100.0%

-345

-7.4%

Urinalysis test strips
Microbiological reagents

Total5

Earnings details by segment (1)Fecal immunochemical tests (FIT) reagents

Immunological and serological reagents
Sales increased in due to increases in the number of facilities
adopting the HbA1c test.

Sales in Japan remained steady, but sales decreased mainly
overseas due to the timing of orders.
Net sales by segment(Millions of yen)

4,000

Of which overseas sales(%)

Overseas sales as share of total

70%(Millions of yen)

Net sales by segment

3,000

3,452

3,000

2,436

60%

3,121

2,381

2,481

2,868
51%

50%
2,000

43%

42%
2,000

40%

1,750
1,333

1,195

30%
1,000
20%

1,000

10%

00%0FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

2023

2024

2025

2023

2024

2025

6

Earnings details by segment (2)Urinalysis test strips

Microbiological reagents
Although sales of new rapid diagnostic kits increased, overallsales remained at the same level as the same period last year
due to the order timing in sales of susceptibility-related products.

Steady growth due to new adoption in Japan and increased
sales to overseas.
Net sales by segment(Millions of yen)

Net sales by segment(Millions of yen)

1,500

1,500

1,122

1,095
992

1,000

1,000

500

1,038

1,058

951

500

00
FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

2023

2024

2025

2023

2024

2025

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Earnings details by segment (3)Clinical chemistry test reagents

Equipment/culture mediums related to food and environment
Sales increased due to increased demand from increased
production in the food industry.

Sales remained at the same level as the previous year despite
the severe market environment.
Net sales by segment(Millions of yen)

Net sales by segment(Millions of yen)200600542
512
160150150480151
400

1002005000
FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

2023

2024

2025

2023

2024

2025

8Earnings details by segment (4)Molecular test (LAMP)

Medical devices/Others

Sales decreased due to the drop in demand for COVID-19 detection
kits, and LAMP patent expiration.
LAMP license incomes ： ¥1 million (¥108 million Same periodprevious fiscal year)

Sales remained at the same level as the same period last year.

Net sales by segment(Millions of yen)

Net sales by segment(Millions of yen)

3,000

1,000

929
817

841

800

2,113
2,000

600

400
1,000
551

200
232

00
FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

FY ended Mar. 31,

2023

2024

2025

2023

2024

2025

9Overseas results by region
Europe:Sales of FIT decreased YoY due to inventory adjustments caused by waiting for next bidding, but this isexpected to be temporary, and recovery is expected from the 2Q onward.

North America:

Sales of FIT decreased YoY due to the order timing, but there were no negative factors in the market, andrecovery is expected from the 2Q onward.

Asia/Oceania/Other: Sales of FIT for Oceania and urinalysis test strips※ remained strong, although sales of FIT for Asia declined
YoY due to inventory adjustments and other factors.

3,000(Millions of yen)

2,523

2,500
2,164

2,113

2,000
1,500

1,046
959

1,104585

1,000

462

387

500

892

673

6920FY ended Mar. 31, 2023*:All sales of overseas urinalysis test strips (in partnership withSysmex Corporation) are included in the Asia region

FY ended Mar. 31, 2024
EuropeNorth America
10

FY ended Mar. 31, 2025
Asia/Oceania/OtherConsolidated earnings forecast for theFY ending Mar.31 2025

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Financial forecast for the fiscal year ending March 31, 2025
Currently, no change to the full-year forecast for the fiscal year ending March 31, 2025.
Expect to pick up from the 2Q onward due to factors such as recovery of FIT in overseas countries,
increase in orders for TB-LAMP, and efficient use of expenses.
FY ending Mar. 31, 2025
(Forecast)

FY ended Mar. 31, 2024
(Millions of yen)

Percentage of netsales(Millions of yen)

YoY

Percentage of netsales(Millions of yen)

Change40,052100.0%

43,100100.0%

3,048

+7.6%

Japan

29,93674.7%

30,780

71.4%

843

+2.8%

Europe

3,929

9.8%

4,600

10.7%

670

+17.1%

North America

1,959

4.9%

2,610

6.1%

650

+33.2%

Asia/Oceania/Other

4,227

10.6%

5,110

11.9%

882

+20.9%

Cost of sales

23,32858.2%

23,46054.4%

132+0.6%

Gross profit

16,72341.8%

19,640

45.6%

2,917

+17.4%

Selling, general andadministrative expenses

13,34533.3%

13,980

32.3%

635

+4.8%

Operating profit

3,377

8.4%

5,660

13.1%

2,283

+67.6%

Ordinary profit

3,568

8.9%

5,620

13.0%

2,052

+57.5%Net profit

2,634

6.6%

4,480

10.4%

1,846

+70.1%Net sales

12Forecast by segment for the fiscal year ending March 31, 2025
In the FIT business, expected to pick up from the 2Q onward due to recovery from the restrained purchases due to the bidding period in
major European countries, price increases taking advantage of the weak yen, expansion of the target age group, promotion ofCalprotectin, and efforts to increase consultation rates in each country.
In the Molecular test business, no change is expected in the full-year forecast, as large orders for TB-LAMP for developing countries areexpected.
Other segments are also expected to achieve the full-year forecast due to steady sales.

FY ended Mar. 31, 2024
(Millions of yen)

Fecal immunochemical tests (FIT)
reagents

Composition

FY ending Mar. 31, 2025
(Millions of yen)

Composition

YoY

12,31530.8%

14,800

34.3%

2,485

+20.1%

Immunological and serological reagents

9,394

23.5%

10,245

23.8%

851

+8.9%

Urinalysis test strips

4,401

11.0%

4,515

10.5%

114

+2.4%

Microbiological reagents

4,312

10.8%

4,800

11.1%

488

+11.1%

575

1.4%

690

1.6%

115

+20.1%

Equipment/culture mediums related tofood and environment

1,961

4.9%

1,715

4.0%

-246

-12.5%

Molecular test (LAMP)

2,625

6.6%

2,860

6.6%

235

+9.0%

Medical devices/Others

4,46411.1%

3,475

8.1%

-989

-22.4%

40,052100.0%

43,100100.0%

3,048

+7.4%

Clinical chemistry test reagents

Total

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Other topics
1.

Started construction of new manufacturing building at Nogi Division.

2.

Decided to relocate head office.

3.

Efforts to increase domestic screening participation rates.
~ Public health information website launched.~

4.

Continuously selected as a constituent of FTSE Blossom Japan Sector
Relative Index.

14Started construction of new manufacturing building at Nogi Division
To accelerate the global development of FIT and secure production space for an anticipated corresponding large increase in production
volume, it is started construction of new manufacturing building as a production base that consolidates production of immunological andserological reagents at the Nogi Plant in Tochigi Prefecture.
Started in May 2024 – completion in June 2025 (scheduled). Total ¥6.5 billion. (Amount to be paid during this fiscal year: ¥4.3 billion.)

Issue

SummarySpace

Market launch of new andimproved products
Equipment upgrades
Production structure

Specific issues to be resolved•

With the acceleration of global development of FIT and ananticipated corresponding large increase in production volume,
production space at Nasu Plant was seen becoming insufficientEquipment

Testing redundancy
Transport lead time toshipment warehouse• Improvement of manufacturing cost rate for Eiken’s products• Redundancies in testing equipment and storage space for same raw
materials at each factory• Outsourcing of testing to other factory creates product transport fromNasu Plant to product control division in Nogi (shipment warehouse)• Roughly 1 week lead time required, meaning safekeeping 1 weeklongerOrganization

Redundancy in factoryorganization
Increasingly difficult to transfer
design management• Increase production value per person• With labor shortages anticipated in the future, work to streamline
staff operations that duplicate organizational functions throughconsolidation and digital transformation• Strengthen coordination with research divisions consolidated at Nogi
Division to expedite transfer of design management

15

Decided to relocate head office
Relocate head office from the current Taito-ku location to Chiyoda-ku, Tokyo, in order to promote flexible work
styles and improve management efficiency.

➢ New Address
Ochanomizu Solacity 20F, 4-6 Kandasurugadai, Chiyoda-ku, Tokyo, Japan➢ Opening Date
Scheduled for September 2025
➢ Purpose for relocation
To promote flexible work styles and improve management efficiency.
To promote the slogan “- Team × Challenge -” of our management plan byrevitalizing internal communication through the introduction of new work
styles, as well as to achieve reforms in work styles and awareness.

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Efforts to increase domestic screening participation rates.
~Public health information website launched.~
Public health information website 「」 launched. (Japanese Only)

https://imakara.eiken.co.jp/
This website was launched to communicate to everyone what can do now to ensure a healthy future.
As the first step, we are releasing a video about colorectal cancer screening by a doctor.
We plan to continue providing various information that will be useful for your health through this site.

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Continuously selected as a constituent of FTSE Blossom Japan Sector Relative Index
Continuously included in the FTSE Blossom Japan Sector Relative Index in July 2024.

The FTSE Blossom Japan Sector Relative Index is designed as a sector neutral benchmark that reflects theperformance of companies demonstrating strong Environmental, Social and Governance (ESG) practices inJapan. The index selects companies with higher ESG Ratings within the top 50% of each sector and supports
climate transition to a low carbon economy by evaluating companies’ climate governance and climate change
efforts via the Transition Pathway Initiative’s Management Quality Score.

＜ Reference ＞ EIKEN Sustainability：https://www.eiken.co.jp/en/sustainability/
ESG Date：https://www.eiken.co.jp/en/sustainability/esg_data/

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Saving Your HealthContinuing to protect people's health as a global clinical diagnostics company

Forward-Looking Statements• This material contains forward-looking statements about EIKEN CHEMICAL CO., LTD. (EIKEN).
• These forward-looking statements are based on the current judgments and assumptions ofEIKEN in light of the information currently available to it.
• Uncertainties inherent in such judgments and assumptions, the future course of our business
operations and changes in operating environments both in Japan and overseas may cause ouractual results, performance, achievements, or financial position to be materially different fromany future results, performance, achievements or financial position either expressed or implied
within these forward-looking statements.