Consolidated Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2026 (Japan GAAP)

February 5, 2026

Stock Exchange Listing: Prime Market, Tokyo Stock Exchange

Head Office: Tokyo

Representative: Hirokazu Ogino, Representative Director, President and Chief Executive Officer

Contact: Fumio Izumida, Operating Officer, General Manager of Corporate Strategy Division

Phone: +81 / 3 - 5996 - 8003 (URL https://www.nihonkohden.co.jp)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Highlights for the 3rdQuarter of FY2025 (From April 1, 2025 to December 31, 2025)
   1. Consolidated Operating Results

      Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.

      	Net sales		Operating income		Ordinary income		Income attributable to owners of parent
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      FY2025 3Q (9 months) FY2024 3Q (9 months)	164,013 158,476	3.5 1.5	9,134 10,935	-16.5 4.0	11,882 13,506	-12.0 1.9	6,408 8,137	-21.2 2.7

      Note: Comprehensive income: FY2025 3Q: 4,934 million yen (-38.3%) FY2024 3Q: 8,003 million yen (-18.1%)

      	Net income per share - Basic	Net income per share - Diluted
      	Yen	Yen
      FY2025 3Q (9 months)	39.31	-
      FY2024 3Q (9 months)	48.77	-

      Note: Effective July 1, 2024, each share of common stock was split into two shares. Net income per share is calculated on the assumption that the stock split was implemented at the beginning of the fiscal year ended March 31, 2025.

   2. Consolidated Financial Conditions

   	Total assets	Net assets	Equity ratio	Net assets per share
   	Millions of yen	Millions of yen	%	Yen
   As of December 31, 2025	246,762	172,534	69.9	1,062.47
   As of March 31, 2025	258,276	181,294	69.5	1,101.11

   Reference: Equity Capital: FY2025 3Q: 172,534 million yen FY2024: 179,552 million yen

2. Dividends

   	Dividends per share
   	First quarter	Interim (Second quarter)	Third quarter	Year-end	Full-year
   	yen	yen	yen	yen	yen
   FY2024	-	15.00	-	16.00	31.00
   FY2025	-	16.00	-
   FY2025 (Forecast)				16.00	32.00

   Note: Revise of dividends forecast: None

3. Consolidated forecast for FY2025 (From April 1, 2025 to March 31, 2026)

Note: Percentages indicate increase/decrease over the corresponding period in the previous fiscal year.

Note: Revise of consolidated forecast: Yes

1. Significant changes in scope of consolidation during the period: Yes

   Newly included: 1 company (Nihon Kohden Advanced Technology Center India Private Limited)

   Excluded:

   2 companies (E-Staff Insurance Services Corporation,

   Advanced Medical Predictive Devices, Diagnostics and Displays, LLC)

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

   Note: For details, please refer to "2. Consolidated Financial Statements and Primary Notes (4) Notes to Consolidated Financial Statements (Applying of Specific Accounting of the Consolidated Quarterly Financial Statements)" on page 11 of the attachment.

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   FY2025 3Q	170,961,960 shares
   FY2024	170,961,960 shares

   1. Total number of issued shares at the end of the period (including treasury shares)

      FY2025 3Q	8,571,654 shares
      FY2024	7,897,392 shares

   2. Number of treasury shares at the end of the period

      FY2025 3Q	163,019,145 shares
      FY2024 3Q	166,867,130 shares

   3. Average number of shares outstanding during the period Notes:

1. Effective July 1, 2024, each share of common stock was split into two shares. "Average number of shares outstanding during the period" is calculated on the assumption that the stock split was implemented at the beginning of the fiscal year ended March 31, 2025.

2. Number of treasury shares, which are deducted from "Number of treasury shares at the end of the period" and "Average number of shares outstanding during the period," includes the Company's stock held by the trust of Employee Stock Ownership Plan.

   • 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 of orders tend to be concentrated in September and March due to these hospitals' budget executions. In particular, sales and income are highly 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.

1. Operating Results Analysis

   During the term under review (April 1, 2025 to December 31, 2025), the global economic outlook remained uncertain due to escalating protectionism and fragmentation as well as prolonged uncertainty caused by geopolitical risks and policy trends in each country. In Japan, business sentiment in medical institutions declined and the proportion of operating deficits increased due to price and wage inflation, while each medical institution strove to implement task shifting and improve its operational efficiency. Internationally, overall demand for medical equipment remained steady, while there was uncertainty regarding proposed budget cuts to public health insurance in the U.S. and the effects of the economic slowdown in China. Medical institutions both in Japan and internationally have been promoting medical digital transformation, which includes data health, telemedicine, and utilization of AI and ICT, because they need to urgently improve the quality and efficiency of their medical care.

   Under these circumstances, Nihon Kohden continued the implementation of its Three-year Business Plan, BEACON 2030 Phase II, which started in FY2024. The Company aims to achieve targets for three indicators: growth, profitability, and capital efficiency, by implementing six key measures including "Enhance product competitiveness", "Focus on growth of North America Business", and "Implement the reform of the profit structure".

   Japan: Nihon Kohden concentrated 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 also focused on strengthening its marketing and service capabilities, creating customer value which contributed to improving medical safety, patient outcomes, and operating efficiency. Because capital expenditure in hospitals was cautious, domestic sales decreased, while the Company focused on strengthening its consumables and services business. Sales in the public hospital market decreased. Sales of AEDs in the PAD (public access defibrillation) market also decreased due to inventory adjustment at distributors. Sales in the university, private hospital, and clinic markets increased. Sales of Patient Monitors and Treatment Equipment decreased, while sales of Physiological Measuring Equipment and Other Medical Equipment increased. As a result, domestic sales decreased 0.9% over the nine months of FY2024 to ¥100,192 million. International: Overseas sales achieved double-digit growth, because sales in North America, Europe, and Asia & Other increased favorably. Overseas sales also increased favorably on a comparable basis excluding the currency effect and the impact of the consolidation of Ad-Tech. Sales in North America showed double-digit growth, posting a significant increase in sales of neurology products including Ad-Tech as well as favorable sales of ventilators and AEDs. Sales of Patient Monitors decreased compared to the strong growth in the same period of the previous fiscal year. Sales in Latin America decreased, mainly in Mexico. In the third quarter (three months), sales in Latin America increased year on year due to large orders in Paraguay. Sales in Europe increased favorably, especially in Italy, Turkey, and the Netherlands. Sales in Asia & Other increased favorably, mainly in Southeast Asia and the Middle East & Africa. In the third quarter (three months), sales in Asia & Other decreased year on year due to taking time to comply with laws and regulations. Sales of Physiological Measuring Equipment and Treatment Equipment increased significantly. Sales of Patient Monitors and Other Medical Equipment decreased. As a result, international sales increased 11.3% over the nine months of FY2024 to ¥63,820 million.

   As a result of the above, overall sales during the term under review increased 3.5% over the nine months of FY2024 to

   ¥164,013 million. Operating income decreased 16.5% to ¥9,134 million over the nine months of FY2024, as domestic sales decreased and SG&A expenses increased due to wage increases and R&D investment. Ordinary income decreased 12.0% to

   ¥11,882 million. Income attributable to owners of parent decreased 21.2% to ¥6,408 million over the nine months of FY2024, as extra payments for early retirements were recorded as extraordinary losses.

   Consolidated Sales Results by Product Category

   (Millions of yen) Nine months ended December 31, 2025

   	Amount	Growth rate (%)
   Physiological Measuring Equipment	38,566	+ 17.0
   Patient Monitors	57,543	- 5.0
   Treatment Equipment	40,001	+ 6.6
   Other Medical Equipment	27,901	+ 1.8
   Total	164,013	+ 3.5
   Medical Devices	75,677	- 1.8
   Consumables and Services	88,336	+ 8.5
   (Reference) Sales by Region Domestic Sales	100,192	- 0.9
   Overseas Sales	63,820	+ 11.3
   North America	35,180	+ 16.0
   Latin America	3,412	- 4.7
   Europe	9,922	+ 10.0
   Asia & Other	15,305	+ 6.3

   (Operating Results by Reporting Segments) Japan: Sales decreased 1.1% to ¥100,750 million and segment income decreased 46.4% to ¥7,362 million in the nine months of FY2025. North America: Sales increased 18.2% to ¥38,081 million and segment income was ¥1,739 million in the nine months of FY2025 (Segment loss of ¥875 million in the nine months of FY2024). Rest of World: Sales increased 3.4% to ¥25,181 million and segment income increased 24.8% to ¥569 million in the nine months of FY2025. Segment Income: Total segment income excluding the unrealized gains on inventories and amortization of goodwill and intangible assets decreased 27.4% to ¥9,671 million in the nine months of FY2025.

   * The amounts are aggregated by region, based on the location of the Company or its consolidated subsidiaries.

   
   
   
2. Financial Conditions Analysis
   1. Financial Position

      Total assets at the end of the current fiscal period decreased by ¥11,513 million compared to the end of the previous fiscal year to ¥246,762 million.

      Current assets decreased by ¥12,957 million to ¥170,128 million compared with the end of the previous fiscal year. This

      is mainly due to a decrease in notes and accounts receivable resulting from the collection from the end of the previous fiscal year.

      Fixed assets increased by ¥1,443 million to ¥76,634 million compared with the end of the previous fiscal year. This is mainly due to an increase in construction in progress for a new plant at Tsurugashima.

      Total liabilities at the end of the current fiscal period decreased by ¥2,752 million compared to the end of the previous fiscal year to ¥74,228 million. This is mainly due to a decrease in short-term borrowings and an increase in long-term

      borrowings resulting from the refinancing of borrowings, as well as an increase in other current liabilities associated with early retirement, while provision for bonuses and accrued income taxes decreased.

      Total net assets at the end of the current fiscal period decreased by ¥8,760 million compared to the end of the previous

      fiscal year to ¥172,534 million. This is mainly due to decreases in capital surplus and non-controlling interests resulting from the additional acquisition of shares of NeuroAdvanced Corp., as well as the acquisition of own shares.

      As a result, net assets per share decreased by ¥38.64 to ¥1,062.47 and the equity ratio increased by 0.4 percentage points from 69.5% at the end of the previous fiscal year to 69.9%.

   2. Cash Flows

Cash and cash equivalents (hereinafter referred to as "funds") on a consolidated basis at the end of the current fiscal period increased by ¥28 million compared with the end of the previous fiscal year to ¥43,089 million.

The status of each cash flow and their factors in the current fiscal year are as follows. (Cash flows from operating activities)

Funds obtained from operating activities increased by ¥6,185 million year-on-year to ¥12,477 million. This is mainly due to income before income taxes of ¥9,882 million, depreciation and amortization of ¥3,393 million, a decrease in provision of

¥2,052 million, a decrease in trade receivables of ¥15,436 million, an increase in inventories of ¥4,648 million, and income taxes paid of ¥7,557 million.

(Cash flows from investing activities)

Funds used in investing activities decreased by ¥16,760 million year-on-year to ¥6,472 million. This is mainly due to the purchase of property, plant and equipment, amounting to ¥4,685 million, and the purchase of intangible assets, amounting to

¥1,680 million.

(Cash flows from financing activities)

Funds used in financing activities was ¥7,038 million (obtained of ¥4,585 million in the same period of the previous fiscal year). This is mainly due to a net decrease in short-term borrowings resulting from refinancing amounting to ¥25,984 million, as well as proceeds from long-term borrowings of ¥25,500 million, purchase of treasury shares of ¥2,724 million, and cash dividends paid of ¥5,229 million.

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