Nihon Kohden CorporationTSE: 6849

Consolidated Financial Highlights Presentation for the Fiscal Year Ended March 31, 2026

May 14, 2026 at 7:48 AM UTC · Issued by Nihon Kohden Corporation

Consolidated Financial Highlights for FY2025 ended March 31, 2026

Consolidated Financial Results for FY2025
Forecast for FY2026
Business Strategy

(Securities Code: 6849)

May 15, 2026

Consolidated Financial Results

1 for FY2025

Executive Summary
FY2025
Increased sales / Decreased income YoY
Overall sales +4.3%; Domestic sales -0.6%, Overseas sales +13.1%, Operating income -9.5%
- Sales:
  Domestic sales increased excluding lower sales of locally purchased products and Abbott products. Sales of AEDs decreased due to inventory adjustment at distributors. Sales of diagnostic information systems and clinical information systems achieved double-digit growth. Sales of in-house consumables and services also increased
  Overseas sales increased in all regions driven by double-digit growth in North America. Sales also increased favorably on a local currency basis excluding the impact of the consolidation of Ad-Tech
- Operating income decreased as domestic sales decreased and SG&A expenses increased due to wage increases and R&D investments as well as higher depreciation caused by M&A and capital investments
  FY2023
  Overseas Sales Ratio

Gross Profit Margin

FY2024

35.9%

35.6%

FY2025		FY2026 Targets
38.6%		38.7%

50.7%		50%

75.2%		75%

51.8%		53%

43.8%		38%

Favorable growth in North America, Impact of consolidation of Ad-Tech

Consumables and

Services Sales Ratio

47.9%

49.7%

In-house Sales Ratio

73.5%

73.6%

Impact of consolidation of Ad-Tech
50.2%
52.0%
Lower sales of locally purchased products and Abbott products in Japan, Impact of consolidation of Ad-Tech
Increase in cost including tariffs, Increase in inventory devaluation
41.4%
42.8%
Increased due to missing actual sales forecasts, wage increases, R&D
SG&A Ratio

(Ref.) OP/employee ¥3.33 mil ¥3.48 mil

investments, and higher depreciation

¥3.11 mil*1 1.5 times or more*2

*1 Excluding DOWELL's employees. *2 Compared to FY2023.

Consolidated Operating Results for FY2025

+14% on a local currency basis (+8% on a local currency basis excluding impact of consolidation of Ad-Tech)

(Amounts of less than ¥1 million are rounded down)

		FY2024	FY2025	YoY (%)
Net sales		225,424	235,099	4.3
	Domestic sales	145,237	144,406	- 0.6
	Overseas sales	80,187	90,693	13.1
Gross profit (Gross margin)		117,157 52.0%	121,726 51.8%	3.9
SG&A expenses (SG&A ratio)		96,444 42.8%	102,981 43.8%	6.8
Operating income (Operating margin)		20,713 9.2%	18,745 8.0%	- 9.5
Ordinary income		20,373	22,544	10.7
Income attributable to owners of parent		14,098	14,513	2.9

FY2024 4Q	FY2025 4Q	YoY (%)
66,947	71,086	6.2
44,083	44,213	0.3
22,863	26,872	17.5
34,725 51.9%	36,640 51.5%	5.5
24,947 37.3%	27,029 38.0%	8.3
9,778 14.6%	9,610 13.5%	- 1.7
6,866	10,661	55.3
5,961	8,104	36.0

Foreign exchange gains/losses:

¥0.9 bn losses → ¥3.4 bn gains

Extraordinary losses: Extra payments for early retirements ¥2.4 bn

Average exchange rate (yen) 1 USD/1 EUR

152.4/163.5 150.5/174.2 153.5/160.2 155.0/184.1

Breakdown of Operating Income for FY2025
(Amounts of less than ¥1 million are rounded down)
FY2024 20,713
Impact of Ad-Tech: approx. 60%
Increase in gross profit from sales increase
+4,486
Impact of selling prices and cost
+834
Impact of Ad-Tech:
less than 50%
Increase in SG&A*
-6,729
Currency effect
-559
FY2025 18,745
Items of increase/decrease in SG&A expenses*
- Salaries +¥2.71 bn
- Amortization of goodwill +¥0.93 bn
- Depreciation +¥0.87 bn
- R&D expenses +¥0.62 bn

Benefit from the reform of the profit structure

Approx. 2.2%pt

* Increase in SG&A indicates the amount as a factor of increase/decrease of operating income excluding the currency effect.

Items of increase/decrease in SG&A expenses indicate major components of increased/decreased SG&A expenses on a yen basis.

Main reasons for gross margin changes

Increase in cost including tariff impact -0.9 pt

Increase in inventory devaluation
Higher selling prices of in-house products
Higher gross margin of IT systems and services in Japan
Favorable product mix

-0.6 pt

+0.8 pt

+0.4 pt

+0.2 pt

Breakdown of Operating Income for FY2025 4Q

(Amounts of less than ¥1 million are rounded down)

FY2024 4Q

9,778

Impact of Ad-Tech: approx. 40%

Increase in gross profit from sales increase

+1,348

Impact of selling prices and cost

+220

Impact of Ad-Tech:

more than 50%

Increase in SG&A*

-1,727

Currency effect

-9

FY2025 4Q

9,610

Items of increase/decrease in SG&A expenses*

Salaries +¥1.12 bn
Depreciation +¥0.31 bn
R&D expenses +¥0.30 bn
Amortization of goodwill +¥0.24 bn

* Increase in SG&A indicates the amount as a factor of increase/decrease of operating income excluding the currency effect.

Items of increase/decrease in SG&A expenses indicate major components of increased/decreased SG&A expenses on a yen basis.

Main reasons for gross margin changes

Increase in cost including tariff impact -1.6 pt

Increase in inventory devaluation
Favorable product mix
Higher selling prices of in-house products
Higher gross margin of IT systems and services in Japan

-1.5 pt

+1.3 pt

+0.8 pt

+0.5 pt

Domestic Sales

Sales by market Sales of in-house/

third-party products

Sales by product category

(Sales, millions of yen)

	FY2024	FY2025	YoY(%)
Physiological Measuring Equipment	36,247	36,824	1.6
Patient Monitors	46,194	45,927	- 0.6
Treatment Equipment	30,766	28,912	- 6.0
Other Medical Equipment	32,028	32,742	2.2
Total sales	145,237	144,406	- 0.6

(¥100 million) (¥100 million)

(Reference)

Medical Devices	60,099	58,664	- 2.4
Consumables and Services	85,137	85,742	0.7

[ Markets ] Sales of AEDs decreased in the PAD market mainly due to inventory adjustment at distributors. Sales in the public hospital market also decreased. Sales in the university, private hospital, and clinic markets increased.

[ Products ] In-house/third-party products: Sales of locally purchased products and ablation catheters decreased. Sales of in-house consumables and services increased, while sales of in-house medical devices decreased slightly.

Physiological Measuring Equipment: Sales of diagnostic information systems achieved double-digit growth and sales of neurology products also increased favorably. Sales of ECGs and polygraphs for cath lab decreased.

Patient Monitors: Sales of telemetry systems and transmitters decreased. Sales of clinical information systems achieved double-digit growth. Sales of bedside monitors also increased.

Treatment Equipment: Sales of Abbott's ablation catheters decreased. Sales of AEDs and defibrillators also decreased. Sales of ventilators increased favorably, mainly for intubated-type ventilators.

Other Medical Equipment: Sales of installation and maintenance services for medical devices increased favorably and sales of hematology instruments and reagents also increased. Sales of locally purchased products decreased.

Overseas Sales

Overseas sales: YoY +13%

(on a local currency basis：+14%,

on a local currency basis excluding consolidation of Ad-Tech: +8%)

Sales by region

(¥100 million)

Overseas sales ratio

FY2024	FY2025
35.6%	38.6%

	FY2024	FY2025	YoY (%)	Local currency basis (%)
Physiological Measuring Equipment	10,627	16,812	58.2	58
Patient Monitors	38,771	38,331	- 1.1	- 1
Treatment Equipment	22,417	27,373	22.1	23
Other Medical Equipment	8,371	8,175	- 2.3	- 1
Total sales	80,187	90,693	13.1	14

Sales by product category (Sales, millions of yen)

Asia & Other

Europe

Latin America

North America

YoY Local currency

basis

Medical Devices	53,204	57,332	7.8	9
Consumables and Services	26,982	33,361	23.6	24

+6%	+9%
+9%	+4%
+4%	+6%
+19%	+20%

(Reference)

[ Region ] Sales increased in all regions driven by double-digit growth in North America. Sales increased favorably on a local currency basis excluding the impact of the consolidation of Ad-Tech.

[ Products ] Physiological Measuring Equipment: Sales of neurology products including Ad-Tech increased significantly.

Treatment Equipment: Sales of ventilators increased significantly in North America, Europe, and Latin America.

Patient Monitors: Sales in North America and Europe decreased compared to the strong growth in FY24, while sales in Asia & Other achieved double-digit growth. Sales increased favorably in FY25 4Q.

Sales in North America
- Double-digit growth on yen basis / local currency basis excluding impact of consolidation of Ad-Tech
- Significant growth of Physiological Measuring Equipment and Treatment Equipment,
Decline in sales of Patient Monitors compared to strong growth in FY24, while double-digit growth in FY25 4Q

(¥100 million)

500

400

300

200

100

YoY +19%

498

370

419

102

218

103

255

138

244

103

(Local currency basis +20%)

FY2023 FY2024 FY2025

[ Product Category ] * YoY on a local currency basis

Physiological Measuring Equipment: over 100％ growth Double-digit growth on local currency basis excluding impact of consolidation of Ad-Tech. Strong growth of home sleep recorders
Patient Monitors: low-single-digit decline
Decline in medical devices, while double-digit growth in consumables such as sensors. Double-digit growth in FY25 4Q driven by delivery and installation of medical devices
Treatment Equipment: mid-30% growth

Strong growth of ventilators and double-digit growth of AEDs: Strong growth of mask-type / intubated-type ventilators, Expanded market share of AEDs

Sales in Latin America
- Increased on yen basis / local currency basis in FY25 thanks to double-digit growth in 4Q. Steady growth mainly in Paraguay and Peru

(¥100 million)

YoY +4%

(Local currency basis +6%)

FY2023 FY2024 FY2025

[ Product Category ] * YoY on a local currency basis

Physiological Measuring Equipment: high-teen decline Decline in sales of neurology products. Favorable growth of ECGs
Patient Monitors: low-teen decline Decline mainly in Mexico and Brazil
Treatment Equipment: low-30% growth Significant growth of ventilators thanks to large orders in Paraguay. Strong growth of AEDs
Other Medical Equipment: mid-teen growth Growth of maintenance services for medical devices in Mexico

Sales in Europe
- Increased favorably, especially in Turkey, the U.K., and Italy

(¥100 million)

140

120

100

YoY +9%

131

125

136

(Local currency basis +4%)

FY2023 FY2024 FY2025

[ Product Category ] * YoY on a local currency basis

Physiological Measuring Equipment: mid-20% growth
Favorable growth of neurology products on local currency basis excluding impact of consolidation of Ad-Tech
Patient Monitors: high-single-digit decline Decline mainly in Germany
Treatment Equipment: mid-teen growth Significant growth of ventilators and defibrillators
Other Medical Equipment: mid-teen decline Decline in sales of hematology instruments and reagents

Sales in Asia & Other
- Increased favorably, especially in Southeast Asia such as Thailand and Vietnam, in India, and in the Middle East & Africa such as Morocco and Israel
- FY25 4Q: Increased YoY, compared to decline in 3Q when it took time to comply with laws and regulations

(¥100 million)

YoY +6%

(Local currency basis +9%)

[ Product Category ] * YoY on a local currency basis

250

200

234

203

216

Physiological Measuring Equipment: mid-teen growth

Double-digit growth of neurology products. Favorable growth of ECGs

Patient Monitors: low-20% growth

150

Received large orders in Morocco.

Favorable growth in Southeast Asia and India

100

FY2023 FY2024 FY2025

Treatment Equipment: mid-single-digit growth Double-digit growth of defibrillators and ventilators

Other Medical Equipment: mid-single-digit decline Decline in sales of hematology instruments. Steady growth of reagents

(Ref.) Sales and Gross Margin by Product Category / Sales Ratio

(Sales, millions of yen)

(Reference)

*The figures in parentheses in the table are gross profit margins.

Physiological Measuring Equipment

	FY2024	FY2025	YoY(%)
Physiological Measuring Equipment	46,874 (43%)	53,636 (45%)	14.4
Patient Monitors	84,965 (65%)	84,258 (64%)	- 0.8
Treatment Equipment	53,184 (44%)	56,286 (44%)	5.8
Other Medical Equipment	40,400 (45%)	40,918 (47%)	1.3
Total sales	225,424 (52%)	235,099 (52%)	4.3

Patient Monitors Treatment Equipment Other Medical Equipment

Total Medical Devices Consumables and Services

Physiological Measuring Equipment

Medical Devices

113,304

(54%)

115,996

(54%)

2.4

Consumables and

112,119

119,103

6.2

Services

(50%)

Patient Monitors Treatment Equipment Other Medical Equipment

Total

58%

42%

88%

78%

12%

22%

68%

75.2%

81%

32%

24.8%

19%

70%

30%

In-house products Third-party products

42%

54%

58%

46%

61%

39%

34%

49.3%

66%

50.7%

Medical Devices Consumables and Services

(Ref.) Breakdown of Sales by Product Category

(Sales, millions of yen)

	FY2024	FY2025	YoY (%)
Neurology Products	10,544	16,273	54.3
ECGs (Electrocardiographs)	6,280	6,230	- 0.8
Polygraphs for Cath Lab	17,841	17,521	- 1.8
Diagnostic Information Systems	6,343	7,116	12.2
Other Physiological Measuring Equipment *	5,864	6,494	10.7
Physiological Measuring Equipment	46,874	53,636	14.4

	FY2024	FY2025	YoY (%)
Defibrillators (for Hospital and Ambulance)	8,335	9,093	9.1
AEDs (Automated External Defibrillator)	24,451	24,390	- 0.3
Pacemakers / ICDs	2,446	2,445	- 0.0
Ventilators	9,688	13,190	36.1
Other Treatment Equipment	8,263	7,166	- 13.3
Treatment Equipment	53,184	56,286	5.8

（Ref.）AED Unit Sales (units)		117,000	115,400	- 1.4
	Domestic Unit Sales (units)	63,800	57,900	- 9.2

*Includes products of other companies.

		FY2024	FY2025	YoY (%)
Patient Monitors		84,965	84,258	- 0.8
	Clinical Information Systems	5,585	6,337	13.5

	FY2024	FY2025	YoY (%)
Hematology Instruments	13,217	12,799	- 3.2
Imaging Systems and Others *	27,182	28,119	3.4
Other Medical Equipment	40,400	40,918	1.3

*Includes consumables, installation and maintenance services which are not part of other categories.

Financial Position

(Amounts of less than ¥1 million are rounded down)

	FY2024	FY2025	Change			FY2024	FY2025	Change
Current assets	183,085	177,808	- 5,276		Current liabilities	72,296	49,428	- 22,867
Inventories	56,174	55,992	- 182		Interest-bearing debt	26,030	50	- 25,980
Property, plant & equipment	29,270	32,250	2,979	Non-current liabilities		4,685	27,286	22,601
Intangible assets	27,653	27,222	- 431	Interest-bearing debt		ー	22,388	22,388
Investments & other assets	18,266	19,256	989	Net assets		181,294	179,824	- 1,470
Total assets	258,276	256,538	- 1,737	Total liabilities & net assets		258,276	256,538	- 1,737

Inventory turnover (months)

6.2

5.9

Equity ratio

69.5%

70.1%

[Reasons for decrease of current assets] Notes and accounts receivable decreased by ¥1.3 bn.

[Reasons for increase of property, plant & equipment ] Buildings and structures increased by ¥6.3 bn.

The Tsurugashima Production Center started operations

[Reasons for decrease of current liabilities] Interest-bearing debt (short-term borrowings) decreased by ¥25.9 bn.

[Reasons for increase of non-current liabilities] Interest-bearing debt (long-term borrowings) increased by ¥22.3 bn.

*Refinancing of short-term borrowings into long-term borrowings

Cash Flows

(Amounts of less than ¥1 million are rounded down)

(Billions of yen)

	FY2024	FY2025	Change
Ⅰ. Net cash flows from operating activities	15,286	21,055	5,768
Ⅱ. Net cash flows from investing activities	- 25,138	- 8,285	16,853
Free cash flows	- 9,852	12,770	22,622
Ⅲ. Net cash flows from financing activities	2,550	- 11,599	- 14,149
Effect of exchange rate change on cash and cash equivalents	485	1,405	919
Net increase (decrease) in cash and cash equivalents	- 6,816	2,576	9,392
Cash and cash equivalents at end of period	43,061	45,637	2,576

ROE

7.8%

8.1%

FY2024 FY2025

Change

Income before income taxes

21.5 19.9 -1.6

Decrease (increase) in accounts receivable

0.7

Income taxes paid

-9.7

3.3

+2.6

-7.6

+2.1

FY2024 FY2025

Change

Purchase of property, plant and equipment

-7.1 -5.7 +1.3

Purchase of shares of subsidiaries resulting in change in scope of consolidation

-18.8 -0.5 +18.3

FY2024 FY2025 Change

Net increase (decrease) in short-term borrowings

25.3 -25.9 -51.3

Proceeds from long-term borrowings

- 25.5 +25.5

Decrease (increase) in deposits paid

-7.6 7.2 +14.9

Purchase of shares of subsidiaries not resulting in change in scope of consolidation

- -7.4 -7.4

8) Capital Investment and R&D Expenses

(Amounts of less than ¥1 million are rounded down)

	FY2024 Actual	FY2025			Change	FY2026 Plan	Change
	FY2024 Actual	Original forecast announced May 13	Revised forecast announced Nov 10	Actual	Change	FY2026 Plan	Change
Capital investment	9,519	9,400	9,400	7,807	- 1,711	6,000	- 1,807
Depreciation	4,067	4,900	5,000	4,757	690	6,000	1,243
R&D expenses	6,826	7,200	7,400	7,453	626	7,700	247

FY2026 capital investment plan

Molds for new products, measuring equipment and jigs, products for demonstration, production equipment, and introduction of new CRM*1

PLM/MES*2 systems

Capital Investments: approx. ¥3.0 bn

Tsurugashima Production Center

Total investments: approx. ¥11.0 bn

FY22: ¥0.3 bn, FY23: ¥0.5 bn, FY24: ¥0.9 bn

FY25: ¥0.9 bn, FY26 : ¥0.3 bn ~

FY22: ¥2.3 bn (Acquisition of the site)

~FY24: ¥4.1 bn, FY25: ¥2.9 bn

(Building and facilities)

FY26: ¥0.3 bn (Facilities) ~

PLM: Started operation in Sep. 2025 MES: Started operation in Nov. 2025

Construction: Started in July 2024

Completed in Oct. 2025 Operation: Started in Mar. 2026

*1 CRM: Customer Relationship Management including Sales Force Automation function *2 PLM: Product Life-cycle Management, MES: Manufacturing Execution System

2 Forecast for FY2026

Business Environment
The global economic outlook is expected to remain uncertain due to geopolitical risks and policy trends in the U.S., as well as higher oil prices and difficulties in procuring parts and components

Japan International
Securing medical staff and promoting reforms in their work style
Medical service fees will rise by 3.09% in June 2026.
Responses to price and wage inflation. Urgent measures to address deterioration of medical institutions' business environment
Transformation to a more efficient, higher-quality healthcare system. Establishing integrated community care systems
Funds for securing comprehensive medical and long-term care in the community: FY2026 budget ¥96 bn for medical care
Deterioration of medical institutions' business due to price and wage inflation
Subsidy program for improving operational efficiency and workplace environment by introducing ICT in medical institutions and for addressing price and wage inflation
U.S.
- Future policy trends such as tariffs and proposed budget cuts to public health insurance should be monitored carefully
  Emerging countries
- China: Enforced new standards and preferential treatment for domestically produced products
- Middle East & Africa, Southeast Asia: Concerns about the impact of conflicts in the Middle East
- Moves to protectionism and tightening of laws and regulatory requirements for medical devices in each country
© Copyright NIHON KOHDEN CORPORATION All Rights Reserved 18

Forecast for FY2026

(Amounts of less than ¥1 million are rounded down)

+8% on a comparable basis excluding impact of discontinuation of Abbott products and consolidation of DOWELL

+9% on a local currency basis

		FY2025 Actual	FY2026 Forecast	YoY (%)
Net sales		235,099	232,500	- 1.1
	Domestic sales	144,406	133,500	- 7.6
	Overseas sales	90,693	99,000	9.2
Gross profit (Gross margin)		121,726 51.8%	129,000 55.5%	6.0
SG&A expenses (SG&A ratio)		102,981 43.8%	105,500 45.4%	2.4
Operating income (Operating margin)		18,745 8.0%	23,500 10.1%	25.4
Ordinary income		22,544	23,500	4.2
Income attributable to owners of parent		14,513	15,000	3.4

	Overseas sales ratio	38.6%	42.6%

	FY2025 Actual	FY2026 Forecast	YoY (%)
North America	49,808	56,300	13.0
Latin America	5,613	6,200	10.4
Europe	13,649	13,800	1.1
Asia & Other	21,621	22,700	5.0
Total	90,693	99,000	9.2

Overseas sales by region

Average exchange rate (yen) 1 USD/1 EUR

150.5/174.2 150/175

Highlights of Forecast for FY2026

Net sales

[ down ¥2.5 bn YoY ]

• +8% on a comparable basis excluding impact of discontinuation of

Domestic sales

[ down

¥10.9 bn ]

Abbott products and consolidation of DOWELL

Focusing on providing in-house products, consumables, and services

Abbott products: Decline by ¥21.3 bn to ¥2.3 bn from ¥23.6 bn

Hospital / clinic markets: Growth by ¥9.7 bn by focusing on ventilators and DHS products AEDs: Growth by ¥0.7 bn as inventory adjustment at distributors was settled down

• +9% on a yen basis, +9% on a local currency basis

Aiming at sales growth in all regions

North America: Focusing on sales recovery of patient monitors, Sales growth of ventilators and neurology products

Latin America, India: Steady demand for medical equipment

Middle East & Africa, Southeast Asia: Concerns about the impact of conflicts in the Middle East

Overseas sales

[ up ¥8.4 bn ]

Operating income

[ up ¥4.8 bn ]

Ordinary income

[ up ¥1.0 bn ]

Net income

[ up ¥0.5 bn ]

Gross margin is expected to improve supported by a favorable product mix, while sales will decrease due to the discontinuation of Abbott products
SG&A expenses are expected to increase due to wage increases and higher depreciation related to investments in internal IT systems
Continuing implementation of measures in three key areas of the reform of the profit structure

*The Company incorporates negative factors worth ¥1.8 bn for sales and ¥1.2 bn for operating income caused by conflicts in the Middle East into its full-year forecast, reflecting anticipated lower sales and higher shipping costs, respectively.

(Ref.) Analysis of FY2026 Forecast

FY2026 2,325

Sales

(¥100 million)

2,500

2,400

2,300

2,200

Increase in sales in Japanese hospital and clinic market

¥23.6bn

¥2.3bn

+97

Increase in AED sales in Japan

Actual increase

Currency effect

2,100

2,000

1,900

1,800

1,700

Abbott

products

-213

Impact of

DOWELL:

more than 10%

AED unit sales in Japan

in overseas sales -1

+85

FY2025 2,350

1,600

1,500

Operating Income

300

FY25: 57,900 units FY26: 61,400 units

250

200

Impact of

Impact of selling prices

and cost

Increase in other SG&A

such as

Increase in Depreciation

FY2026 235

Benefit from the reform of the profit structure

Approx. 1.5%pt

Currency effect

150

100

increase/decrease in sales

FY2025 187

+78

Personnel expenses

-15

Impact of

and R&D -1 expenses

-16

50 Including negative impact of discontinuation of Abbott products and positive impact of

0 consolidation of DOWELL

DOWELL:

more than 50%

(Ref.) Consolidated Forecast for FY2026 by Product Category / Effect of Exchange Rates

	FY2025 Actual	FY2026		YoY (%)
	FY2025 Actual	Forecast	Composition ratio (%)	YoY (%)
Physiological Measuring Equipment	53,636	41,200	17.7	- 23.2
Patient Monitors	84,258	92,300	39.7	9.5
Treatment Equipment	56,286	54,900	23.6	- 2.5
Other Medical Equipment	40,918	44,100	19.0	7.8
Total	235,099	232,500	100.0	- 1.1

(Amounts of less than ¥1 million are rounded down)

Medical Devices	115,996	126,500	54.4	9.1
Consumables and Services	119,103	106,000	45.6	- 11.0

(Reference)

Estimated Exchange Rate Fluctuations for Full Fiscal Year

+6% excl. impact of discontinuation of Abbott products

+8% excl. impact of consolidation of DOWELL

+10% excl. impact of discontinuation of Abbott products

+7% excl. impact of discontinuation of Abbott products

Sales

Operating

Income

US Dollar

0.52 bn yen

0.18 bn yen

EURO

0.06 bn yen

0.02 bn yen

3 Business Strategy

Long-term Vision and Three-year Business Plan

We contribute to the world by fighting disease and improving health with advanced technology, and create a fulfilling life for our employees.

Management Philosophy

Create a better future for people and healthcare by solving global medical issues

Long-term Vision

Targets for FY2029

Operating Margin

15%

Overseas Sales Ratio

45%

Three-year Business Plan

Apr. 2027 - Mar. 2030

Apr. 2024 - Mar. 2027

Apr. 2021 - Mar. 2024

PhaseⅢ: Realize BEACON 2030

PhaseⅡ: Invest for growth PhaseⅠ : Strengthen foundation

Core Values

Core values are shared by Nihon Kohden staff worldwide, helping to connect them and contributing to the promotion of our Management Philosophy, Long-term Vision, and Three-year Business Plan.

Integrity / Humbleness / Diversity / Initiative / Customer Centric / Goal Oriented / Creativity

Three Transformation for BEACON 2030

Promote overseas business strategies emphasizing high growth and improved profitability
Develop sophisticated value propositions and cultivate new businesses areas in domestic business
Create new business models by utilizing our global business foundation

Create a business model that helps solve medical issues
Realize a value creation model that creates value from data, by utilizing our core strength in Human Machine Interface* technology
3
Establish an organizational and governance system in line with our corporate strategy
Establish a development, production and sales system based on Global Supply Chain Management
Strengthen global business deployment capabilities by establishing a Center of Excellence

* Human machine interface is the user interface that connects human and machine. For Nihon Kohden, this refers to sensor technology, signal processing technology, and data analysis technology.

3 Indicators and 6 Key Measures

Implement the reform of the profit structure and make investments in growth areas, and accelerate our transformation into a global MedTech company

1) Growth

Sales CAGR

FY2023 - FY2026

2) Profitability Operating income margin

in FY2026

15%

Advance global supply chain management

Implement the reform of the profit structure

Focus on growth of North America Business

Enhance product competitiveness

3) Capital efficiency

ROE

in FY2026

12%

Reduce cash conversion cycle

Introduce Nihon Kohden's own ROIC formula

Practice of Sustainability Management

Social

issues

Environmental issues

Medical

issues

Medical

issues

Environmental

issues

Social

issues

3) Capital efficiency

ROE 8.1%

in FY2025

Visualizing NK's own ROIC in each R&D, production, sales, and administration division, and providing feedback for improvement in profitability and efficiency
Promoting monitoring of ROIC/CCC at North American subsidiaries

Increased inventories of finished goods temporarily in preparation for starting operation of PLM/MES systems and Tsurugashima Production Center
CCC remained at 215 days compared to 225 days in FY24 and forecast of 190 days

Introduce Nihon Kohden's own ROIC formula

Review of the 2nd year - 6 Key Measures

Started production of transport monitors at Defibtech
Started operation of PLM/MES systems*2
Started operations at Tsurugashima Production Center
Preparing for production of medical equipment in India

Achieved YoY 220 bps improvement in operating margin in FY25
Accelerating implementation of measures in three key areas toward 500 bps improvement in operating margin (FY26 vs FY23)

OPM 8.0%

in FY2025

2) Profitability

Significant growth in sales of ventilators through continuing to sign new contracts with major IDNs/GPOs*1
Achieved double-digit sales growth and recorded operating income

Fully automatic AED • Transmitters
On-site alarm analytics software
Admission and discharge management software
AlarmSense alarm solution

Launched new high-value-added products and services

Sales growth 4.3%

in FY2025

1) Growth

Advance global supply chain management

Implement the reform of the profit structure

Focus on growth of North America Business

Enhance product competitiveness

Reduce cash conversion cycle

*1 IDN: Integrated Delivery Network, GPO: Group Purchase Organization

*2 PLM: Product Life-cycle Management, MES: Manufacturing Execution System

Target and Forecast for the Last Year of

Net sales

Domestic sales Overseas sales

(Overseas sales ratio)

Consumables and

services sales ratio

In-house sales ratio

Solution sales ratio

Gross profit margin

FY2023 Actual FY2026 Target

FY2026 Forecast

CAGR

¥221.9 bn	¥256.0 bn	¥232.5 bn	+2%
¥142.3 bn	¥157.0 bn	¥133.5 bn	-2%
¥79.6 bn (35.9%) 47.9%	¥99.0 bn (38.7%) 50%	¥99.0 bn (42.6%) 45.6%	+8%
73.5%	75%
11%	11%
50.2%	53%	55.5%
¥19.5 bn (8.8%)	¥38.5 bn (15%)	¥23.5 bn (10.1%)	+6%
¥17.0 bn	¥25.0 bn	¥15.0 bn

4.0%

9.8%

12%

ROE

ROIC

Income attributable

to owners of parent

Operating income

(Operating income margin)

Sales by region

Net sales

143.9/156.8	150/175	¥142.3 bn	¥157.0 bn	¥133.5 bn	-2%
		¥37.0 bn	¥50.0 bn	¥56.3 bn	+15%
		¥6.0 bn	¥6.0 bn	¥6.2 bn	+1%
		¥13.1 bn ¥23.4 bn	¥14.0 bn ¥29.0 bn	¥13.8 bn ¥22.7 bn	+2% -1%

Average exchange rate (yen) 1 USD/1 EUR

140/150

FY23 Actual FY26 Target

FY26 Forecast

CAGR

Japan

North America

Latin America

Europe

Asia & Other

* Solution business, software/program, and maintenance services are included.

Difference b/w Target and Forecast in FY2026

Domestic sales

[ down ¥23.5 bn ]

Net sales

[ down ¥23.5 bn ]

Overseas sales

[ flat ] down ¥6.3 bn in actual sales

/ up ¥6.3 bn

in currency effect

Latin America, Southeast Asia, India: Generally in line with plan
China: Prolonged economic slowdown and anti-corruption campaign
⇒ Promoting partnerships with local companies
Middle East & Africa, Europe:
Geopolitical risks and delays in complying with laws and regulations
⇒ Generally completed complying with laws and regulations, The impact of conflicts in the Middle East should be monitored
North America:
Customers are cautious about decision-making in patient monitor negotiations
⇒ Recovery trend in orders, Focusing on delivery and installation.
Creating synergies with Ad-Tech
Operating Income
[ down ¥15 bn ]
- Gross profit due to shortfall in sales: Down ¥7.1 bn
- COGS including tariffs / higher raw material prices: Up ¥4.6 bn
- SG&A expenses including wage and price inflation: Up ¥1.0 bn
- Costs related to M&A: Up ¥4.1 bn
  Steady sales growth
  Continuing the reform of the profit structure
  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved 29
  - Abbott products:
  - Locally purchased products:
  - In-house products:
  Down ¥24.8 bn
  Down ¥2.9 bn Up ¥4.2 bn
  Contributing to gross margin
  improvement
  including consolidation of DOWELL and raising selling prices
  
  Sales
  Difference b/w Target and Forecast in FY2026
  
  (¥100 million)
  Target 2,560
  Discontinuation of Abbott products
  -248
  Locally purchased products
  -29
  Domestic sales
  +42
- Consolidation of DOWELL
- Higher selling prices
  Actual overseas sales
  -63
  China -50 Middle East
  & Africa -29
  Europe -18
  Currency effect
  +63
  Forecast
  2,325
  Operating Income
  Japan -235 International ±0
  Increase in
  
  in-house products
  Target 385
  in Japan
  +21
  Discontinuation of Abbott products
  -55
  Overseas sales shortfall
  -37
  Increase in COGS
  -46
  - Tariffs
  - Higher raw material prices
    Increase in SG&A
    expenses
    -10
  - Wage increases
  - Inflation
    M&A costs
    -41
    Currency effect
    +18
    Forecast
    235
    Gross profit -117 SG&A expenses +51
    © Copyright NIHON KOHDEN CORPORATION All Rights R
    eserved 30
    
    New products and services in FY2025/FY2026
    Growth
    - Analyzing real-time
    alarm status and causes for each patient
    Launched in Japan in FY2025 4Q
    Launched in the U.S. in FY2025 2Q Planned to launch in Europe in FY2026
    - Analyzing and displaying alarm trends across the hospital
    - Reducing alarm fatigue for medical staff
    - Automatically acquiring, aggregating, and visualizing information necessary for hospital bed management, including information on admission, discharge, and transfer
    Launched in Japan in FY2025 4Q
    
    Enhance product competitiveness

Contributing to easing medical staff workload

Improving hospital bed occupancy rate Reducing length of hospital stays

Optimizing hospital management Improving economics of medical care

Launched in Japan in FY2025 3Q

Transmitters ZS-730/720P

Admission and discharge

management software

AlarmSense alarm solutions

On-site alarm analytics software

Solution Business (ITS✢DHS) Patient Monitoring Business

Next generation central monitor

Planned to launch in the U.S in FY2026

Growth

Focus on stable growth in Japan

FY2016 - FY2025

10-year sales CAGR

+1.6%

Locally purchased products

-20%

Purchased products

+1.8%

In-house products +4.1%

Medical devices +2.5% Consumables & services +5.6%

(Ratio of consumables and services: 55%, FY25)

Market growth rate Approx.1~2%

Phase II sales target CAGR 3%

(¥100 million)

In-house medical devices ■ In-house consumables and services
NEW!
Established Domestic Business Headquarters
Creating new growth business

Promoting cross-departmental transformation

Strengthening domestic business structure

Medical devices

Maintaining and expanding higher market share of each product by capturing replacement demand steadily

Purchased products ■ Locally purchased products

Abbott products

¥23.6 bn → ¥2.3 bn

+8% YoY

excluding impact of Abbott products and consolidation of DOWELL

Consumables and services

Improving CX* and medical safety by promoting genuine consumables and expanding maintenance services plans

Solution Business (ITS＋DHS)

Promoting medical DX* and contributing to improving quality and economy of medical care
Consolidated DOWELL as a subsidiary

(Feb. 2026)

[ Transfer of operations for Abbott products ] Completed approx. 65% as of Mar. 31, 2026 and planned to complete approx. 90% as of Sep. 30, 2026

* CX: Customer experience, DX: Digital transformation.

Growth

Focus on higher growth in North America

FY2016 - FY2025

10-year sales CAGR

+13%

Physiological Measuring Equipment*

+14%

Patient Monitors

+10%

Treatment Equipment

+20%

Market growth rate

mid-single digit

Phase II sales target CAGR 11%

(¥100 million) ■ Physiological Measuring Equipment ■ Patient Monitors

Treatment Equipment ■ Other Medical Equipment

+13% YoY on a local currency basis

* Consolidated Ad-Tech in FY2025

No.1 market share for mask-type ventilator

40% or more

in 2025 (Company's estimate)

FY2025

DHS products

= 16%

(Sales composition in Patient Monitors)

Increasing number of business negotiations for intubated-type ventilators

Digital Health Platform

RemoteSense AlarmSense

Ventilators

Signing new contracts with major IDNs/GPOs*
Expanding market share

Patient Monitors

Achieving differentiation by enhancing DHS* products
Expanding market share
Proposals to facilities that have installed our ventilators

Physiological Measuring Equipment

Creating synergies b/w Neurology &
Ad-Tech products with high market share
Increasing demand for home sleep recorders

* IDN: Integrated Delivery Network, GPO: Group Purchase Organization, DHS: Digital Health Solutions

FY2026

Target

OPM

improvement 5%pt

Improvement: 80 bps in FY2024 300 bps (YoY +220 bps) in FY2025 Expected 450 bps (YoY +150 bps) in FY2026
Continuing to implement measures in three key areas to improve profitability

Profitability

Implement the reform of the profit structure

Target

Reform of profit structure

Supply chain

FY2026 OPM

FY2023 OPM 8.8%

Sales growth and optimization of inventories

+6.1%

Cost increases

-4.9%

Product mix Apx. +2%

Productivity Apx. +2%

Apx. +1%

Target

15%

Forecast

+Increase of in-house products in Japan

Discontinuation of Abbott products
Overseas sales shortfall
Increase in COGS
+Wage increases
Discontinuation of Abbott products
Career Change Support Program

+Restraining of cost increase pressure

- Delay in implementation of Value Engineering measures

FY2023 OPM 8.8%

Sales growth / changes in COGS ratio

+2.1%

Cost increases

-5.3%

Product mix Apx. +2%

Productivity Apx. +2%

Supply chain Apx. +0.5%

FY2026 OPM

Forecast

10.1%

FY2026

Target

OPM

improvement 5%pt

Improvement: 80 bps in FY2024 300 bps (YoY +220 bps) in FY2025 Expected 450 bps (YoY +150 bps) in FY2026
Continuing to implement measures in three key areas to improve profitability

Profitability

Implement the reform of the profit structure

Area Theme

Details of measures

Measures in FY2026

Product mix	Sale pricing	Reviewing pricing policies both in Japan and overseas	Reviewing pricing policies such as raising selling prices in Japan and internationally


	Review of product line-up	Reviewing and optimizing the number of products Increasing in-house sales ratio	Reviewing product line-up

Productivity	Improving personnel productivity, including by utilizing generative AI	Improving operational efficiency by introducing generative AI: 1.4 mil hours per year Focusing on core jobs and reallocating resources: 900 k hours per year Reducing the increase of headcount and overtime hours	Restraining increase of headcount through improving productivity by utilizing generative AI Improved operational efficiency: 380k hours/year in FY24 ⇒ 1,990k hours/year in FY25 Target: over 2.5 mil hours/year in FY26 Introducing new CRM* / Enhancing call center functions to improve productivity Reviewing license fees, contracts for company vehicles and parking facilities
Productivity	Reducing other expenses	Reducing infrastructure costs such as utility costs, rent, and communication expenses, and reviewing traveling costs
Supply chain	Optimizing parts procurement	Refining price negotiations with suppliers Promoting Value Analysis/Value Engineering	Continuing price negotiations and reviewing suppliers under inflation Promoting Value Engineering at factories in Japan, U.S., and China

* CRM: Customer Relationship Management including Sales Force Automation function

Capital efficiency

Introduce Nihon Kohden's own ROIC formula

Visualizing NK's own ROIC in each R&D, production, sales, and administration division, Providing feedback for improvement in profitability and efficiency
Promoting monitoring of ROIC and CCC at subsidiaries in North America
Cost of capital: approx. 8%, calculated by CAPM and WACC
Adopted NPV and IRR as investment decision criteria, Target IRR of 12% in Phase II. Investment decisions are made based on business strategies and the Three-year Business Plan.
8.0%
FY2026
Forecast
FY2025
FY2024
Nihon Kohden's own
ROIC
4.0%
FY2023
FY2022
0%
5.6%
6.4%
Consolidated ROIC / NK's own ROIC
5%
6.4%
Consolidated ROIC
7.4%
6.3%
6.8%
7.8%
15%
10%

Consolidated ROIC = NOPAT ÷ Invested capital
* Invested capital・・・interest-bearing liabilities ＋shareholders' equity

The Board of Directors verifies the progress and effectiveness of investment projects beyond a certain amount every year

Nihon Kohden's own ROIC calculation formula

Operating income

Invested capital (future investment* + accounts receivable

+ inventory + property, plant and equipment - accounts payable)

* R&D costs and personnel expenses in last three years

Phase II target

FY2026 target

~195 days

~175 days

Mid-term target

~150 days

Reduce cash conversion cycle

Securing inventories of parts and components to ensure stable supply of in-house products and consumables, in response to shortages of memory components, higher oil prices, and procurement difficulties

Capital Policy
Make investments for future business expansion and enhance shareholder returns as well as securing a sound financial foundation.

2) Enhancement of shareholder returns
Phase II :
¥28 bn or more
*Considering additional shareholder returns depending on the progress of future investment plans

1) Investment necessary for future business expansion

Phase II :

R&D investments Apx. ¥23.5 bn Capital investments Apx. ¥25.0 bn Growth investments

M&A ¥30 bn or more

R&D investments in patient monitors, ventilators, and Digital Health Solutions
Capital investments for establishing a new plant in Tsurugashima, promoting corporate digital transformation such as PLM/MES systems and generative AI,
and enhancing global supply chain management
Consolidated Ad-Tech as a wholly owned subsidiary, DOWELL as a subsidiary

R&D Investments

Capital Investments

M&A and Alliance

Human Resource Development

Dividends

Increase dNiuvmidbeenrdosf tirneaassutraybslteocmk:anner in line with growth4,0in84bkusshianreesss performance

Full-year dividends forecasts: FY25: 32 yen (Consolidated dividend payout ratio: 35.9%) FY26: 33 yen (Consolidated dividend payout ratio: 35.4%)

Share buyback

Consider in a flexible manner, taking into account comprehensively our future business deployment, investment plans, retained earnings, and stock price level

Share buybacks:

FY25: ¥5.0 bn

(Consolidated total return ratio: 70%)

Number of treasury stock:

Target: Consolidated Total Return Ratio of 35% or more

10,980k shares including ESOP (6.4% as of end March 2026)

3) Sound financial foundation

Maintain a strong financial foundation to ensure a stable supply of medical equipment

Cash allocation policy and progress

Cash + Debt

FY2021-FY2023

Operating cash flow

¥38.7 bn

FY2024-FY2026

Operating cash flow

¥80 bn

or more

Phase II Plan Progress in FY2024-FY2025

Plan in FY2026

Growth investments / M&A:

¥30.0 bn or more

Capital investments:

Apx. ¥25.0 bn

Shareholder returns:

¥28.0 bn or more

(Ref.) R&D investment:

Exploring areas which have synergies with existing businesses

Cash

Debt

¥26.0 bn

Operating cash flow

¥36.3 bn

Shareholder

returns

¥25.3 bn

Capital

investments

¥17.3 bn

Growth investments

¥24.6 bn

¥6.0 bn

¥5.3 bn

Apx. ¥23.5 bn ¥14.2 bn + ¥7.7 bn

Fundraising policy	Using its own funds as the Group's main source of working capital and capital expenditure. Considering borrowing as an effective means of raising funds, when fundraising becomes necessary, such as for M&A and new businesses and optimizing the weighted average cost of capital, which also takes into account the cost of debt.
Necessary cash and deposits	The level of cash and deposits on hand necessary for stable operations is approx. three months of monthly sales.

Disclaimer:

The contents of this document are based on the Company's best judgments at the time it was prepared and do not constitute a guarantee or promise that the Company will achieve its numerical targets or implement the measures described therein.

Information on products (including products under development) in this document is not intended to make any advertisement or promotion.

These documents have been translated from Japanese originals for reference purposes only. In the event of any discrepancy between these translated documents and the Japanese originals, the originals shall prevail.

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