FY2025 Third Quarter Consolidated Financial Highlights presentation with transcript

1. Executive Summary

   FY2025 3Q YTD

   • Sales:

     Increased sales / Decreased income YoY

     Overall sales +3.5%; Domestic sales -0.9%, Overseas sales +11.3%, Operating income -16.5%

     Domestic sales decreased mainly in the public hospital market, as capital expenditure in medical institutions was more cautious than expected in 3Q. Sales of AEDs also decreased due to inventory adjustment at distributors

     Overseas sales achieved double-digit growth thanks to favorable sales in North America, Europe, and Asia & Other. 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 investment

   • Net income Extra payments for early retirements of ¥2.4 bn were recorded as extraordinary losses

     FY2025 Forecast

   • Sales: Revised downward by ¥5 bn to ¥235 bn

     Domestic sales are revised downward by ¥5 bn. Aiming to secure 4Q sales at the same level as FY24 4Q by focusing on consumables and services business as well as delivery and installation of IT system solutions toward the end of the fiscal year Overseas sales are reaffirmed on a yen basis and revised downward on a local currency basis in North America / Asia & Other

   • Operating income is revised downward by ¥4 bn to ¥20 bn, reflecting lower-than-expected sales and gross margin.

Aiming to secure gross margin of 52% or more by focusing on selling in-house products as well as restraining the increase of SG&A expenses in 4Q

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• Overall sales increased and income decreased year-on-year in the nine months of FY2025.

• Domestic sales decreased, as capital expenditure in medical institutions was more cautious than expected in the 3rd quarter. Sales of AEDs in the PAD (public access defibrillation) market also decreased due to inventory adjustment at distributors.

• Overseas sales achieved double-digit growth thanks to favorable sales in North America, Europe, and Asia & Other. 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.

• Based on the results for the nine months of FY2025 and recent performance trends, the Company revised its FY2025 full-year forecasts for overall sales to

  ¥235 billion and operating income to ¥20 billion. Overall sales and gross margin are expected to be lower than the Company's previous forecasts.

  	FY2024 3Q YTD	FY2025 3Q YTD	YoY (%)
  Net sales	158,476	164,013	3.5
  Domestic sales	101,153	100,192	- 0.9
  Overseas sales	57,323	63,820	11.3
  Gross profit (Gross margin)	82,431 52.0%	85,086 51.9%	3.2
  SG&A expenses (SG&A ratio)	71,496 45.1%	75,952 46.3%	6.2
  Operating income (Operating margin)	10,935 6.9%	9,134 5.6%	- 16.5
  Ordinary income	13,506	11,882	- 12.0
  Income attributable to owners of parent	8,137	6,408	- 21.2

  FY2024 3Q	FY2025 3Q	YoY (%)
  55,692	55,892	0.4
  34,909	33,312	- 4.6
  20,782	22,580	8.7
  30,525 54.8%	28,287 50.6%	- 7.3
  24,704 44.3%	25,895 46.3%	4.8
  5,820 10.5%	2,392 4.3%	- 58.9
  11,366	5,150	- 54.7
  7,674	1,884	- 75.4

  2) Consolidated Operating Results for the 3rd Quarter of FY2025

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

  Average exchange rate (yen) 1 USD/1 EUR

  152.0/164.7 148.6/170.9

  149.4/162.0 152.2/178.1

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  Extraordinary losses: Extra payments for early retirements ¥2.4 bn

  Foreign exchange gains:

  ¥2.0 bn → ¥2.4 bn

• The operating results for the nine months and the 3rd quarter of FY2025 are shown above.

  *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.

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  Benefit from

  the reform of the profit structure

  Approx. 2.0%pt

  +¥0.32 bn

  • Legal welfare expenses +¥0.22 bn

  +¥0.56 bn

  • Depreciation

  • R&D expenses

  Items of increase/decrease in SG&A expenses*

  • Salaries +¥1.59 bn

  • Amortization of goodwill +¥0.69 bn

  FY25

  3Q YTD

  9,134

  Currency effect

  -550

  Impact of Ad-Tech:

  more than 40%

  Increase in SG&A*

  -5,002

  Impact of Ad-Tech: approx. 70%

  Increase in gross profit from sales increase

  +3,138

  FY24

  3Q YTD

  10,935

  3.1) Breakdown of Operating Income for FY2025 3Q YTD

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

  excluding currency effect

  Change in gross margin

  +613

  +0.7 pt

  +0.2 pt

  -0.7 pt

  -0.3 pt

  -0.3 pt

  • Increase in cost including tariff impact

  • Increase in inventory devaluation

  • Unfavorable product mix

  • Higher selling prices of in-house products

  • Higher gross margin of IT systems and services in Japan

  Main reasons for gross margin changes

  FY23 50.1%FY24 52.0%FY25 51.9%

  
  
  

• The analysis of the reasons for a decrease in operating income for the nine months of FY2025 is shown above.

• Increase in gross profit from sales increase was ¥3.1 billion, of which, around 70% was due to the impact of the consolidation of Ad-Tech.

• Gross margin was 10 bps lower than the same period of FY2024; however, excluding the negative currency effect, it improved due to higher selling prices of in-house products as well as higher gross margin of IT systems and services in Japan.

• Due to wage increases and R&D investment, SG&A expenses were a negative factor worth ¥5.0 billion, of which, more than 40% was the impact of the consolidation of Ad-Tech, including amortization of goodwill.

• Currency effect had a negative impact of ¥0.5 billion.

  1Q 47.3 52.6％

  2Q 53.1 52.5％

  3Q 54.8 50.6％

  Decrease in gross profit from actual decrease in sales

  *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.

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  -277

  Decreased domestic sales

  Deterioration in gross

  margin

  Increase in SG&A*

  -2,234

  FY23 3Q

  3,023

  1Q +¥2.2 bn YoY

  2Q +¥1.7 bn YoY

  -944 3Q +¥0.9 bn YoY

  Impact of Ad-Tech:

  less than

  Currency

  80% effect

  +27

  FY25 3Q

  2,392

  FY24 3Q

  5,820

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

  FY25

  FY24

  3.2) Breakdown of Operating Income for FY2025 3Q

  +¥0.22 bn

  +¥0.37 bn

  +¥0.25 bn

  • Salaries

  • Depreciation

  • Amortization of goodwill

  Items of increase/decrease in SG&A expenses*

  +0.5 pt

  -0.9 pt

  • Unfavorable product mix

  • Higher selling prices of in-house products

  Main reasons for gross margin changes

  FY23 49.9%FY24 54.8%FY25 50.6%

  • Increase in cost including

    tariff impact -1.5 pt

  • Increase in inventory devaluation -1.4 pt

  
  
  

• The analysis of the reasons for a decrease in operating income for the 3rd quarter of FY2025 is shown above.

• The decrease in gross profit from actual decrease in sales was a negative factor worth ¥0.2 billion, primarily due to decreased domestic sales.

• Deterioration in gross margin was a negative factor worth ¥2.2 billion, due to an increase in cost, an increase in inventory devaluation, and unfavorable product mix. Although the gross margin fell short of the same period of FY2024 of 54.8% and our internal plan of 52% or more, initiatives such as raising selling prices both in Japan and internationally continue to be effective.

• We could restrain the increase of SG&A expenses, excluding the impact of the consolidation of Ad-Tech.

1. Domestic Sales

   Sales by market Sales of in-house/ third-party products

   Sales by product category

   (Sales, millions of yen)

   	FY2024 3Q YTD	FY2025 3Q YTD	YoY (%)
   Physiological Measuring Equipment	25,383	26,123	2.9
   Patient Monitors	32,087	30,695	- 4.3
   Treatment Equipment	22,375	21,239	- 5.1
   Other Medical Equipment	21,306	22,134	3.9
   Total sales	101,153	100,192	- 0.9

   (¥100 million) (¥100 million)

   (Reference)

   Medical Devices	38,735	35,757	- 7.7
   Consumables and Services	62,417	64,435	3.2

   [ Markets ] Sales in the public hospital market decreased. Sales of AEDs in the PAD market decreased due to inventory adjustment at distributors. 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 medical devices decreased, while sales of in-house consumables and services increased.

   Physiological Measuring Equipment: Sales of polygraphs for cath lab increased favorably. Sales of neurology products and diagnostic information systems also increased. Sales of ECGs decreased.

   Patient Monitors: Sales of telemetry systems and transmitters decreased compared to the strong growth in FY24 3Q YTD. Sales of bedside monitors increased.

   Treatment Equipment: Sales of ablation catheters, ventilators, and AEDs decreased.

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

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   • Domestic sales decreased as capital expenditure in medical institutions was cautious, while sales of consumables and services increased.

   • 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.

   • Although sales of both our in-house products and third-party products decreased, sales of our in-house products remained above the levels achieved in the same period of FY2023.

   • Sales of Patient Monitors and Treatment Equipment decreased, while sales of Physiological Measuring Equipment and Other Medical Equipment increased.

   • In Physiological Measuring Equipment, sales of polygraphs for cath lab increased favorably. Sales of neurology products and diagnostic information systems also increased.

   • In Patient Monitors, sales of telemetry systems and transmitters decreased compared to the strong growth in the same period of FY2024. Sales of bedside monitors increased.

   • In Treatment Equipment, sales of ablation catheters, ventilators, and AEDs decreased.

   • In Other Medical Equipment, sales of installation and maintenance services for medical devices, and hematology instruments and reagents increased favorably.

   
   
   
2. Overseas Sales

Overseas sales: YoY +11%

(on a local currency basis：+13%,

on a local currency basis excluding consolidation of Ad-Tech: +7%)

Sales by region

(¥100 million)

Overseas sales ratio

Sales by product category (Sales, millions of yen)

Asi

Oth

Eur

Lati Am

Nor Am

YoY

a & er

ope

n erica

th erica

Local currency basis

(Reference)

[ Region ] Sales achieved double-digit growth thanks to favorable sales in North America, Europe, and Asia & Other.

Sales also increased on a local currency basis excluding the impact of the consolidation of Ad-Tech.

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

Sales of Treatment Equipment also increased significantly driven by strong sales of ventilators and double-digit growth of AEDs. Sales of Patient Monitors decreased compared to the strong growth in FY24 3Q YTD mainly in North America and Europe, while sales in Asia & Other achieved double-digit growth.

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• Overseas sales achieved double-digit growth thanks to favorable sales in North America, Europe, and Asia & Other. Sales also increased on a local currency basis excluding the impact of the consolidation of Ad-Tech.

  The overseas sales ratio increased to 38.9%.

• Sales of Physiological Measuring Equipment increased significantly, driven by neurology products including Ad-Tech.

  Sales of Treatment Equipment also increased significantly driven by strong sales of ventilators and double-digit growth of AEDs.

  Sales of Patient Monitors decreased compared to the strong growth in the same period of FY2024 mainly in North America and Europe, while sales in Asia & Other achieved double-digit growth.

  FY23 3Q FY24 3Q FY25 3Q YTD YTD YTD

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  Strong growth of ventilators and AEDs: Strong growth of mask-type /

  intubated type ventilators, Expanded market share of AEDs

  50

  0

  high-30% growth

  • Treatment Equipment:

  100

  Decline in 1H/3Q compared to double-digit growth in FY24 1H/3Q due to

  cautious stance in decision-making process for business negotiations. Favorable growth of consumables such as sensors

  200

  150

  high-single-digit decline

  • Patient Monitors:

  250

  [ 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

  265

  303

  300

  (Local currency basis +18%)

  (¥100 million)

  351

  350

  +16%

  YoY

  5.1) Sales in North America

  • Double-digit growth on yen basis / local currency basis,

    High-single-digit growth on local currency basis excluding impact of consolidation of Ad-Tech

  • Strong growth of Physiological Measuring Equipment and Treatment Equipment, Decline in sales of Patient Monitors compared to double-digit growth in FY24 3Q YTD

• Sales in North America achieved double-digit growth both on a yen basis and on a local currency basis. Sales also showed a high-single-digit growth on a local currency basis excluding the impact of the consolidation of Ad-Tech.

• Sales of Physiological Measuring Equipment achieved double-digit growth, excluding the impact of the consolidation of Ad-Tech. Sales of home sleep recorders increased significantly due to the withdrawal of competitors.

• Sales of Patient Monitors decreased in the 1st half and 3rd quarter compared to double-digit growth in the same period of FY2024. There was cautious stance in decision-making process for business negotiations due to uncertainty regarding proposed budget cuts to public health insurance. Sales of consumables such as sensors increased favorably.

• In Treatment Equipment, sales of ventilators and AEDs increased significantly. Both the mask-type and the intubated-type ventilators increased favorably. We could also gain market share of AEDs in the U.S.

  ⚫

  FY23 3Q FY24 3Q FY25 3Q YTD YTD YTD

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  ⚫

  Patient Monitors:

  Decline mainly in Mexico

  Treatment Equipment:

  mid-teen decline

  low-20% growth

  Significant growth of ventilators thanks to large orders in Paraguay.

  Double-digit growth of AEDs

  ⚫

  Other Medical Equipment:

  mid-single-digit growth

  Growth of maintenance services for medical devices in Mexico

  Decline in sales of neurology products. Favorable growth of ECGs

  34

  35

  • Physiological Measuring Equipment: mid-teen decline

  39

  (¥100 million)

  45

  40

  35

  30

  25

  20

  15

  10

  5

  0

  [ Product Category ] * YoY on a local currency basis

  (Local currency basis -0%)

  -5%

  YoY

  5.2) Sales in Latin America

  • FY25 3Q YTD: Decreased mainly in Mexico

  • FY25 3Q: Double-digit growth on yen basis / local currency basis thanks to large orders in Paraguay

• Sales in Latin America decreased, mainly in Mexico. In the third quarter (three months), sales in Latin America increased year-on-year both on a yen basis and on a local currency basis due to large orders in Paraguay. We also expect double-digit growth in the 4th quarter.

• Sales of Patient Monitors and Physiological Measuring Equipment decreased, while sales of Treatment Equipment increased favorably.

  ⚫

  9

  60

  40

  ⚫

  Patient Monitors:

  Decline mainly in Germany

  Treatment Equipment:

  mid-single-digit decline

  high-20% growth

  Strong growth of ventilators and defibrillators. Double-digit growth of AEDs

  20

  • Other Medical Equipment:

  high-teen decline

  0

  Decline in sales of hematology instruments and reagents

  FY23 3Q FY24 3Q FY25 3Q YTD YTD YTD

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  Favorable growth of neurology products on local currency basis excluding

  impact of consolidation of Ad-Tech

  80

  90

  • Physiological Measuring Equipment: mid-20% growth

  99

  98

  100

  (¥100 million)

  [ Product Category ] * YoY on a local currency basis

  (Local currency basis +8%)

  +10%

  YoY

  5.3) Sales in Europe

  • FY25 3Q YTD: Increased favorably, especially in Italy, Turkey, and the Netherland

• Sales in Europe increased favorably, especially in Italy, Turkey, and the Netherlands.

• Sales of Treatment Equipment and Physiological Measuring Equipment increased significantly. Sales of Patient Monitors and Other Medical Equipment decreased.

  Patient Monitors:

  Received large orders in Morocco.

  FY23 3Q FY24 3Q FY25 3Q YTD YTD YTD

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  low-20% growth

  Favorable growth in Southeast Asia and India

  ⚫

  Treatment Equipment:

  high-single-digit growth

  Favorable growth of defibrillators. Steady growth of AEDs

  ⚫

  Other Medical Equipment:

  mid-single-digit decline

  Decline in sales of hematology instruments. Favorable growth of reagents

  ⚫

  Favorable growth of neurology products and ECGs

  153

  144

  • Physiological Measuring Equipment: low-teen growth

  171

  (¥100 million)

  180

  160

  140

  120

  100

  80

  60

  40

  20

  0

  [ Product Category ] * YoY on a local currency basis

  (Local currency basis +10%)

  +6%

  YoY

  5.4) Sales in Asia & Other

  • FY25 3Q YTD: Increased favorably, especially in Southeast Asia such as Thailand, Vietnam, and the Middle East & Africa such as Morocco, South Africa

  • FY25 3Q: Decreased due to taking time to comply with laws and regulations

• 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 mainly due to taking time to comply with laws and regulations, mainly in the Middle East & Africa.

• Sales of Patient Monitors and Physiological Measuring Equipment achieved double-digit growth. Sales of Treatment Equipment also increased favorably. Sales of Other Medical Equipment decreased.

  
  
  (Ref.) Sales / Gross Margin by Product Category

  (Sales, millions of yen)

  Sales composition by product category

  (FY2024 3Q YTD ⇒ FY2025 3Q YTD)

  	FY2024 3Q YTD	FY2025 3Q YTD	YoY (%)
  Physiological Measuring Equipment	32,953 (41%)	38,566 (44%)	17.0
  Patient Monitors	60,579 (65%)	57,543 (64%)	- 5.0
  Treatment Equipment	37,538 (44%)	40,001 (44%)	6.6
  Other Medical Equipment	27,405 (47%)	27,901 (48%)	1.8
  Total sales	158,476 (52%)	164,013 (52%)	3.5

  Third-party products

  27.5 ⇒ 26.4%

  Sales

  Medical Devices

  48.6 ⇒ 46.1%

  (Reference)

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

  ¥164.0

  billion

  Medical Devices	77,046 (54%)	75,677 (53%)	- 1.8
  Consumables and	81,430	88,336	8.5
  Services	(50%)	(51%)

  In-house products

  72.5 ⇒ 73.6%

  Consumables and Services

  51.4 ⇒ 53.9%

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• Sales and gross margin by product category are shown above.

• Both in-house sales ratio and consumables and services sales ratio increased.

(Billions of yen)

*Includes products of other companies.

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

other categories.

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12

• A breakdown of sales by product category is shown above.

  	FY2024	FY2025 3Q YTD	Change
  Current assets	183,085	170,128	- 12,957
  Inventories	56,174	62,033	5,858
  Property, plant & equipment	29,270	31,798	2,527
  Intangible assets	27,653	25,526	- 2,127
  Investments & other assets	18,266	19,309	1,042
  Total assets	258,276	246,762	- 11,513

  	FY2024	FY2025 3Q YTD	Change
  Current liabilities	72,296	46,717	- 25,579
  Interest-bearing debt	26,030	50	- 25,980
  Non-current liabilities	4,685	27,511	22,826
  Interest-bearing debt	-	22,950	22,950
  Net assets	181,294	172,534	- 8,760
  Total liabilities & net assets	258,276	246,762	- 11,513

  Inventory turnover (months)

  6.2

  6.7

  Equity ratio

  69.5%

  69.9%

  6) Financial Position

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

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

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  13

  [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 ¥22.9 bn.

• Inventory turnover was 6.7 months, as inventories of finished goods temporarily increased in preparation for starting operation of PLM/MES systems and new plant in Tsurugashima.

  	FY2024 3Q YTD	FY2025 3Q YTD	Change
  Ⅰ. Net cash flows from operating activities	6,291	12,477	6,185
  Ⅱ. Net cash flows from investing activities	- 23,233	- 6,472	16,760
  Free cash flows	- 16,941	6,004	22,945
  Ⅲ. Net cash flows from financing activities	4,585	- 7,038	- 11,624
  Effect of exchange rate change on cash and cash equivalents	536	1,062	526
  Net increase (decrease) in cash and cash equivalents	- 11,818	28	11,847
  Cash and cash equivalents at end of period	38,058	43,089	5,030

  FY24 3Q YTD FY25 3Q YTD Change Income before income taxes 13.2 9.8 -3.3 Decrease (increase) in accounts receivable 10.0 15.4 +5.4 Income taxes paid -9.6 -7.5 +2.0

  FY24 3Q YTD FY25 3Q YTD Change Purchase of property, plant and equipment -3.5 -4.6 -1.1 Purchase of shares of subsidiaries resulting in change in scope of consolidation -18.8 ― +18.8

  FY24 3Q YTD FY25 3Q YTD Change Net increase (decrease) in short-term borrowings 25.2 -25.9 -51.2 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

  7) Cash Flows

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

  (Billions of yen)

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  14

  
  
  

• Cash and cash equivalents at the end of the period were ¥43 billion.

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

• FY2025 capital investment plan

  Molds for new products, measuring equipment and jigs, products for demonstration, and production equipment

  Introduction of PLM/MES* systems

  Capital Investments: approx. ¥3.0 bn

  FY2022: ¥0.3 bn, FY2023: ¥0.5 bn, FY2024: ¥0.9 bn

  FY2025: ¥0.8 bn, FY2026~: ¥0.5 bn PLM: Started operation in Sep. 2025

  MES: Started operation in Nov. 2025

  Establishment of new plant in Tsurugashima City

  Total investments: approx. ¥11 bn

  FY2022: ¥2.3 bn (Acquisition of the site)

  ~FY2024: ¥4.1 bn, FY2025: ¥3.2 bn

  (Building and facilities) FY2026~ : ¥1.4 bn (Facilities)

  Construction: Started in July 2024

  Completed in Oct. 2025

  Operation: Planned to start in Mar. 2026

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

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• There are no changes to our forecasts for full-year capital investments, depreciation, and R&D expenses, respectively.

  	FY2024 Actual	FY2025		Revised forecast announced Feb 5	YoY (%)
  		Original forecast announced May 13	Revised forecast announced Nov 10
  Net sales	225,424	240,000	240,000	235,000	4.2
  Domestic sales	145,237	149,800	149,400	144,400	- 0.6
  Overseas sales	80,187	90,200	90,600	90,600	13.0
  Gross profit (Gross margin)	117,157 52.0%	126,000 52.5%	126,100 52.5%	122,100 52.0%	4.2
  SG&A expenses (SG&A ratio)	96,444 42.8%	102,000 42.5%	102,100 42.5%	102,100 43.4%	5.9
  Operating income (Operating margin)	20,713 9.2%	24,000 10.0%	24,000 10.0%	20,000 8.5%	- 3.4
  Ordinary income	20,373	24,000	24,000	22,000	8.0
  Income attributable to owners of parent	14,098	15,000	12,500	12,500	- 11.3
  Overseas sales ratio	35.6%	37.6%	37.8%	38.6%

  9) Forecast for FY2025

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

  Average exchange rate (yen) 1 USD/1 EUR

  152.4/163.5

  140/156

  146/167

  150/174

  *The assumed exchange rates for FY25 4Q are 154 yen to the U.S. dollar and 184 yen to the euro.

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  +14% on a local currency basis

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

• Based on the results for the nine months of FY2025 and recent performance trends, the Company revised its forecast for FY2025.

• The FY2025 full-year forecasts for overall sales, domestic sales, and overseas sales were revised to ¥235,000 million, ¥144,400 million and ¥90,600 million, respectively.

Net sales

[ down ¥5 bn from previous forecast ]

Domestic sales

[ down ¥5 bn ]

Overseas sales

[ unchanged ]

• Revised downward by ¥5 bn, ¥0.8 bn YoY decline

  • Hospital / clinic market: Greater-than-expected restrictions and delays in budgets Revised downward by ¥3.9 bn to ¥0.2 bn growth from ¥4.1 bn growth

  • AED: Inventory adjustment at distributors *FY24: 63,800 units → FY25: 58,100 units Revised downward by ¥1.1 bn to ¥1.0 bn decline from ¥0.1 bn growth

• 4Q: Aiming to secure sales at the same level as FY24 4Q

by focusing on consumables and services business as well as delivery and installation of IT system solutions toward the end of the fiscal year

• Making every effort for shipping, delivery, and installation by the end of the fiscal year, while decision-making process for business negotiations for patient monitors has become more cautious in North America and it also takes time to comply with laws and regulations mainly in Asia & Other

  Operating income

  [ down ¥4 bn ]

  Ordinary income

  [ down ¥2 bn ]

  Net income

  [ unchanged ]

• Revised downward reflecting lower-than-expected sales and gross margin. Reaffirmed SG&A expenses

• 4Q: Aiming at sales/income growth by securing gross margin of 52% or more and restraining the increase of SG&A expenses through focusing on selling in-house products and implementing the reform of the profit structure

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved 17

• In Japan, budget executions of universities and public hospitals are usually concentrated at the end of the fiscal year. There were some postponements of and restraints on their spending more than expected due to deterioration of their business sentiment. Domestic sales are expected to fall short of its previous forecast, also due to lower-than-expected sales of AEDs caused by inventory adjustment at distributors. The Company aims to secure sales in the 4th quarter at the same level as the same period of FY2024 by continuing to expand sales of consumables and services as well as enhancing sales activities and receiving orders for medical equipment and IT systems that contribute to improving the quality and efficiency of medical care. Sales of Patient Monitors are expected to increase year-on-year in the 4th quarter.

• Overseas sales will be affected by greater-than-expected depreciation of the yen in currency translation. The entire Group makes every effort for shipping, delivery, and installation by the end of the fiscal year, while the decision-making process for business negotiations for patient monitors has become more cautious in North America and the Company needs to comply with laws and regulations, mainly in Asia & Other. Sales of Patient Monitors in North America are expected to increase year-on-year in the fourth quarter, as orders are above the same period of FY2024.

• Because overall sales and gross margin are expected to be lower than the Company's previous forecasts, operating income is expected to be ¥20,000 million. The Company strives to restrain the increase of SG&A expenses through the reform of the profit structure of the entire Group. Ordinary income is expected to be

¥22,000 million, reflecting foreign exchange gains. Income attributable to owners of parent remains unchanged at ¥12,500 million.

Original forecast

(¥100 million)

FY2024 2,254

Sales increase

in Japanese hospital and clinic market

+47

Decrease in AED sales in Japan

-1

Actual increase in overseas sales

+160

Impact of Ad-Tech: approx. 30%

Currency effect

-60

FY2025 2,400

Revised forecast in Nov.

Lower-than-expected sales of locally purchased products

AED unit sales in Japan FY24 63,800 units FY25 original 60,000 units Nov. revised 63,600 units

North America: Unchanged

Asia & Other/Europe/Latin America: Downward

Actual increase in overseas sales

+134

Impact of Ad-Tech: approx. 35%

Currency effect

-30

FY2025 2,400

Revised forecast in Feb.

Greater-than-expected restrictions and delays in budgets

Inventory adjustment at distributors

Latin America/Europe: Unchanged

Feb. revised 58,100 units

North America: Downward reflecting cautious stance in decision-making process for business negotiations for patient monitors

Asia & Other: Downward due to taking time to comply with laws and regulations mainly in the Middle East & Africa and Southeast Asia

FY2024 2,254

opyright NIHON KOHDEN CORPORATION All Rights Reserved

© C

Sales increase

in Japanese hospital and clinic market

+2

Decrease in AED sales in Japan

-10

Actual increase in overseas sales

+112

Impact of Ad-Tech: 40% or more

Currency effect

-8

FY2025 2,350

18

GPM change Increase in sales +4

of goodwill

-15

FY2024 207

sales

domestic sales / Increase in cost

Revised forecast in Feb. actual overseas

Unfavorable product mix

Lower

-15

Impact of Ad-Tech: approx. 35%

FY2025 240

Currency effect

-7

19

Increase in

Increase in

+49

Impact of Ad-Tech: approx. 50%

other SG&A

such as Personnel expenses

-28

Depreciation

Amortization

Increase in

and R&D expenses

-15

of goodwill

-15

Currency effect

-2

FY2025 200

© Co

-12

Original forecast

(¥100 million)

Higher GPM

+25

FY2024 Increase in sales

207

+109

Impact of Ad-Tech: less than 30%

Increase in other SG&A such as Personnel expenses

-57

Increase in Depreciation and R&D expenses

Increase in Amortization of goodwill

-15

Currency effect

-17

FY2025 240

Impact of Ad-Tech: approx. 30%

and R&D expenses

Revised forecast in Nov.

Higher GPM

FY2024 Increase in sales

+19

Increase in other SG&A such as Personnel expenses

Increase in

Depreciation Amortization

Increase in

207

+89

Impact of Ad-Tech: more than 30%

-38

pyright NIHON KOHDEN CORPORATION All Rights Reserved

Overseas sales by region (Amounts of less than ¥1 million are rounded down)

Sales by product category

Estimated Exchange Rate Fluctuations

for Full Fiscal Year

(Reference)

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

20

Toward Enhancing Corporate Value

over the Medium- to Long-term

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

21

Medical

issues

Environmental

issues

Social

issues

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

Practice of Sustainability Management

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

22

• We have previously mentioned that the growth momentum is increasing through the implementation of our initiatives in our Long-term Vision and Three-year Business Plan. In particular, demand for medical DX is growing around the world. Additionally, the withdrawal of competitors is creating a tailwind for demand for ventilators and neurology products.

• On the other hand, we recognize that one of our current issues is the significant quarterly performance volatility caused by the trend of capital expenditure in medical institutions and budget execution by the Government in each country, while we are promoting a transition from a business model centered on capital expenditure to a solution based business or recurring business focused on consumables, services, and DHS products.

• Due to external and internal factors, overall sales fell short of expectations, which has hindered the improvement in SG&A expense ratio and cash conversion cycle. This inability to quantitatively assess the effects of the reform of the profit structure is also considered a factor that lowers the predictability of profitability improvement.

• Therefore, to enhance the Company's corporate value in the medium- to long term, it is essential to focus on the key measures of Growth among three indicators in the Three-year Business Plan, and to effectively combine sustained sales growth with the effects from the reform of the profit structure.

  Growth

  Focus on stable growth in Japan

  Market Phase II

  growth rate sales target Approx.1~2% CAGR 3%

  FY2015 - FY2024

  10-year sales CAGR

  +1.8%

  In-house products +3.5%

  Medical devices +1.8% Consumables & services +5.3%

  (Ratio of consumables and services: 54%, FY24)

  Purchased products

  +2.5%

  Locally purchased products

  -14%

  (¥100 million) ■In-house medical devices ■ In-house consumables and services ■Purchased products ■Locally purchased products

  1,500

  1,000

  500

  Aiming for stable sales growth of

  in-house products

  0

  FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

  FY2029

  [ Transfer of operations for Abbott products ] Completed approx.15% as of Dec. 31, 2025 and planned to complete approx.65% as of Mar. 31, 2026

  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved * CX: Customer experience, DX: Digital transformation. 23

  ITS＋DHS

  • Promoting medical DX* and contributing to improving quality and economy of medical care

  • Planned to consolidate DOWELL, Co., Ltd. as a subsidiary (as of Feb. 2026)

• In Japan, there is a tendency to restrain capital expenditure in medical institutions more than expected. However, we could achieve stable sales growth over the past 10 years and improve our profitability through increasing sales of in-house products, consumables, and services.

• We will further increase sales of in-house products by utilizing the resources generated by the discontinuation of Abbott products.

• We will continue to maintain and expand our high market share in medical devices, as well as expanding consumables and services business. Additionally, we aim to enhance customer experience and achieve sustained stable growth through strengthening our IT solution and digital health solution business, which is essential for medical DX.

  Growth

  Focus on higher growth in North America

  Market Phase II

  growth rate sales target mid-single digit CAGR 11%

  FY2015 - FY2024

  10-year sales CAGR

  +10%

  Treatment Equipment

  +13%

  Physiological

  Patient Monitors Measuring

  +10% Equipment*

  +3%

  * Consolidated Ad-Tech in FY2025

  (¥100 million) ■Physiological Measuring Equipment ■Patient Monitors ■Treatment Equipment ■Other Medic

  600

  300

  Aiming for sustained higher sales growth in North America

  0

  FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

  FY2029

  Operating income is expected to be recorded in existing business excluding Ad-Tech

  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved * IDN: Integrated Delivery Network, GPO: Group Purchase Organization. 24

  Patient Monitors

  • Achieving differentiation by enhancing DHS products

  • Expanding market share

  • Proposals to facilities that have installed our ventilators

al Equipment

• In North America Business, which is our growth driver, we aim for sustained higher growth.

• We have achieved a sales CAGR of 10% over the past 10 years in North America. Especially, Treatment Equipment Business has been rapidly expanding after the launch of ventilators.

• Demand for neurology products is also increasing due to the withdrawal of competitors in addition to the effects from the acquisition of Ad-Tech.

• We have enhanced our solution capabilities for patient monitoring systems for major IDNs by expanding our line-up of DHS products. We aim at a sustained increase in market share for patient monitors, as the development of new customers triggered by ventilators is also progressing, while there is a cautious stance in the decision-making process for business negotiations at this moment.

  lows

  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved 25

  • Optimizing contracts for servers and

    telecom carriers

  • Reducing internal IT system development costs

  • Reviewing cloud usage fees

  Reducing IT costs

  Relocation or consolidation of domestic offices

  • Tokorozawa Office

  • Domestic Offices

  (Sales & Logistics)

  Reduced by

  approx. 300 hours per month

  Conventional Present

  Present

  Conventional

  Reduced by

  approx. 3,600 hours per month

  Streamlining international logistics operations

  • Introduced trade business cloud service to visualize logistics

  Streamlining

  translation of technical documents for licensing applications in each country

  • Developed in-house generative AI translation tools to improve business workf

  • 80 bps improvement in FY2024, Expected 250 bps (YoY +170 bps) in FY2025

  • Completed development of most of the measures and current estimates suggest 70% of the target is expected to be realized by the end of FY2026

  Further accelerate implementation of measures in three key areas to improve profitability

  OPM

  improvement 5%pt

  FY2026

  Target

  Profitability

  Approx. 3,400 h/m

Improve personnel productivity

Reducing other expenses

• In the reform of the profit structure aiming for improving profitability, we confirm that steady effects are beginning to emerge in the area of improving personnel productivity and reducing other expenses.

• In terms of improving personnel productivity, we have achieved the results shown above by streamlining translation for licensing applications in each country and international logistics operations.

• In terms of reducing other expenses, we have achieved cost savings of several hundred million yen through the relocation or consolidation of domestic offices and the review of contracts and usage fees related to internal IT systems.

• We continue to aim at 50 bps improvement in operating income through the reform of the profit structure, while there are gaps between sales target and results as well as impacts from price and wage inflations more than expected.

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

  1. Investment necessary for future business expansion

     Phase II︓

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

     M&A ¥30 bil or more

  2. Enhancement of shareholder returns

  Phase II︓

  ¥28 bil or more

  * We consider additional shareholder returns depending on the progress of future investment plans.

  3) Sound financial foundation

• • 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

  • Ad-Tech became a wholly owned subsidiary. Planned to consolidate DOWELL (as of Feb. 2026)

    R&D Investments

    Capital Investments

    M&A and Alliance

    Human Resource development

    Dividends

    Share buybacks

    Full-year dividends forecasts: 32 yen in FY2025

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

    (Consolidated dividend payout ratio: 41.8%)

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

    Share buybacks:

    ¥5.0 bn (~Mar. 2026) out of ¥1.1 bn (~Dec. 2025)

    Number of treasury stock:

    Target: Consolidated Total Return Ratio of 35% or more

    8,571k shares including ESOP (5.0% as of Dec. 2025)

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

    © Copyright NIHON KOHDEN CORPORATION All Rights Reserved 26

• Our capital policy is shown above.

• 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 make investments for future business expansion and enhance shareholder returns as well as securing a sound financial foundation.

• The Company plans to acquire up to ¥5 billion of its own shares in FY2025.

• It is very unfortunate that we need to revise downward the full-year forecast, as domestic sales and overseas sales fell short of the forecasts due to both external and internal factors in the 3rd quarter. However, we aim to recover in the 4th quarter and continue the momentum to the final year of the Three-year Business Plan.

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.

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved