FY2026 Consolidated Financial Highlights presentation with transcript

1

Consolidated Financial Results

for the First Half of FY2025

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1

1

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

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2

SG&A Ratio: 45.5% → 46.3%

¥46.7 bil → ¥50.0 bil

SG&A:

In-house FY2024 1H FY2025 1H

sales ratio: 71.5% → 73.5%

• Overall sales increased 5.2% over the 1st half of FY2024 to ¥108.1 billion. Domestic sales increased 1.0% to ¥66.8 billion. Overseas sales increased 12.9% to ¥41.2 billion, an 18% growth on a local currency basis, and an 11% growth on a local currency basis excluding the impact of the consolidation of Ad-Tech.

• Operating income increased 31.8% to ¥6.7 billion. Ordinary income increased 214.7% to ¥6.7 billion and income attributable to owners of parent increased 876.7% to ¥4.5 billion, reflecting lower foreign exchange losses.

• Operating income for the 1st half fell short of the Company's internal plan, as sales of locally purchased products were lower than expected in Japan and overseas sales also fell short of its expectations, mainly in Latin America and Asia & Other in the 2nd quarter (three months). We expect to be able to recover in the 2nd half of FY2025.

• Japan：Sales increased, because the Company focused on its consumables and services business, while capital expenditure in hospitals was cautious. Sales of locally purchased products decreased as the Company focused on selling in-house products.

• International：Sales in North America, Europe, and Asia & Other increased favorably. Sales achieved double-digit growth on a comparable basis excluding the currency effect and the impact of the consolidation of Ad-Tech.

  Operating Income : +31.8%

• Operating income increased due to increased sales and the consolidation of Ad-Tech as well as favorable gross profit margin reflecting higher selling prices and cost reductions of in-house products and a decrease in inventory devaluation.

  Ordinary Income : +214.7%

• Foreign exchange losses decreased.

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Main reasons for higher gross margin

• Higher selling prices of in-house

products

• Higher gross margin of IT systems and services in Japan

+0.7 pt

+0.4 pt

• Cost reductions at Tomioka factory +0.4 pt

• Decrease in inventory devaluation +0.2 pt

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

10,000

9,000

8,000

Increase in

gross profit from sales increase

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

+3,415

Impact of Ad-Tech:

approx. 45%

FY2024 1H

5,114

Currency

effect

-577

Gross margin improvement

+2,847

Increase

in SG&A*

-4,058

FY2025 1H

6,741

Benefit from reform of profit structure

Approx. 1.7%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.

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• In the 1st half of FY2025, operating income increased to ¥6.7 billion from ¥5.1 billion in the 1st half of FY2024.

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

• The increase in gross profit from increased sales was ¥3.4 billion, of which, around 45% was due to the impact of the consolidation of Ad-Tech.

• Gross margin improvement was a positive factor worth ¥2.8 billion, due to higher selling prices and cost reductions of in-house products as well as a decrease in inventory devaluation.

• Due to wage increases, SG&A expenses were a negative factor worth ¥4.0 billion, of which, around 35% was the impact of the consolidation of Ad-Tech, including amortization of goodwill.

  	98		96
  	89		93
  	168		172
  	188		189
  	117		117

  4) Domestic Sales

  Sales by market

  (¥100 million)

  Sales composition by market

  (FY2024 1H ⇒ FY2025 1H)

  662

  668

  600

  Other

  Other*

  14.9

  ⇒ 14.3%

  Clinics

  Universities 17.7

  ⇒ 17.5%

  400

  Clinics 13.6

  ⇒ 14.0%

  Private

  hospitals

  200

  Public

  hospitals

  Domestic

  Sales

  ¥66.8

  Private billion

  hospitals Public hospitals

  25.4 28.4

  ⇒ 25.8%

  ⇒ 28.4%

  Universities

  0

  First half FY2024

  First half FY2025

  *Other includes laboratories, animal hospitals and PAD (public access

  defibrillation) markets such as schools and private companies.

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• Domestic sales increased by ¥0.6 billion to ¥66.8 billion.

• Sales increased because the Company focused on its consumables and services business as well as strengthening its marketing and service capabilities, while capital expenditure in hospitals was cautious due to the deterioration of their business sentiment.

• Sales in the clinic, private hospital, and public hospital markets increased. Sales in the university market remained flat.

  First half FY2024	First half FY2025
  35.6%	38.1%

  5) Overseas Sales

  Geographic segments

  (¥100 million)

  412

  Overseas sales: YoY +13%

  Percentage of overseas sales to

  consolidated sales

  consolidation of Ad-Tech: +11%)

  400

  300

  365

  92

  107

  Geographic Segments

  (FY2024 1H ⇒ FY2025 1H)

  200

  57

  22

  62

  20

  100

  192

  223

  Europe 15.7

  Asia & Other 25.4

  ⇒ 26.0%

  Overseas Sales

  ¥41.2

  billion

  North America 52.8

  ⇒ 54.1%

  0

  First half FY2024

  First half FY2025

  ⇒ 15.0% Latin

  America 6.1

  ⇒ 4.9%

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  • North America: YoY +16%

  (on a local currency basis：+21%)

• Overseas sales increased by ¥4.7 billion to ¥41.2 billion.

• Sales in North America, Europe, and Asia & Other increased favorably. Overseas sales achieved double-digit growth on a comparable basis excluding the currency effect and the impact of the consolidation of Ad-Tech.

• Sales in North America increased by ¥3.1 billion to ¥22.3 billion, a 21% growth on a local currency basis, posting a significant increase in sales of neurology products including Ad-Tech as well as favorable sales of ventilators. Sales of Patient Monitors decreased compared to the strong growth in the 1st half of FY2025.

• Sales in Latin America decreased by ¥0.2 billion to ¥2.0 billion, a 3% decline on a local currency basis, as sales in Mexico and Colombia decreased.

• Sales in Europe increased by ¥0.5 billion to ¥6.2 billion, a 9% growth on a local currency basis, as sales in Italy, Turkey, and Spain increased favorably.

• Sales in Asia & Other increased by ¥1.5 billion to ¥10.7 billion, a 21% growth on a local currency basis, as sales in Thailand and Vietnam showed strong growth and sales in the Middle East & Africa also increased significantly due to large orders in Morocco.

  	First half FY2024	First half FY2025	YoY (%)
  Physiological Measuring Equipment	21,474 (40%)	26,053 (45%)	21.3
  Patient Monitors	38,478 (64%)	37,559 (65%)	- 2.4
  Treatment Equipment	24,444 (42%)	26,287 (45%)	7.5
  Other Medical Equipment	18,387 (46%)	18,220 (49%)	- 0.9
  Total Sales	102,784 (51%)	108,120 (53%)	5.2

  Medical Devices	49,966 (52%)	49,877 (54%)	- 0.2
  Consumables and Services	52,818 (50%)	58,242 (51%)	10.3

  6) Sales by Product Category

  (Sales, millions of yen)

  Sales composition by product category

  (FY2024 1H ⇒ FY2025 1H)

  Other Medical Equipment

  17.9 ⇒ 16.9%

  Physiological Measuring Equipment

  20.9 ⇒ 24.1%

  Consumables and Services

  51.4 ⇒ 53.9%

  (Reference)

  Treatment Equipment

  23.8 ⇒ 24.3%

  Sales

  ¥108.1

  billion

  Medical Devices

  48.6⇒ 46.1%

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

  Patient Monitors

  37.4 ⇒ 34.7%

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• Sales by product category are shown above.

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

• Sales of Consumables and Services increased 10.3% to ¥58.2 billion due to the impact of the consolidation of Ad-Tech. The sales ratio of Consumables and Services also increased to 53.9%.

• Gross profit margins by product category are shown above.

  	First half FY2024	First half FY2025	YoY (%)
  Electroencephalographs	4,760	7,780	63.4
  Electrocardiographs	3,025	3,002	- 0.8
  Polygraphs for Cath Lab	8,690	9,672	11.3
  Diagnostic Information Systems	2,296	2,587	12.7
  Other Physiological Measuring Equipment *	2,701	3,010	11.4
  Physiological Measuring Equipment	21,474	26,053	21.3
  Domestic Sales	16,659	17,892	7.4
  Overseas Sales	4,814	8,161	69.5

  6.1) Physiological Measuring Equipment

  (Sales, millions of yen)

  *Includes products of other companies.

  NEW!

  Electro-encephalograph

  EEG-1290

  EMG/EP measuring system

  MEB-2300

  Electro- Holter ECG cardiograph monitor

  EMG electrode for

  neuromuscular Ad-Tech

  monitoring intracranial

  NM-34 series electrodes

  ECG-3250

  RAC-5000

  Polygraphs for Cath Lab

  RMC-5000

  Clinical assistant service

  PRM-2100

  Consumables

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  Sales of EEGs showed strong growth in North America and Asia & Other, excluding impact of consolidation of Ad-Tech. Sales of ECGs also increased favorably in Asia & Other.

Sales of diagnostic information systems and polygraphs for cath lab achieved double-digit growth. Sales of EEGs also increased favorably. Sales of ECGs decreased.

• Sales of Physiological Measuring Equipment increased 21.3% to ¥26.0 billion.

• Domestic sales increased 7.4% to ¥17.8 billion. Sales of polygraphs for cath lab as well as diagnostic information systems achieved double-digit growth. Sales of EEGs also increased favorably driven by strong sales of EMG electrodes for neuromuscular monitoring. Sales of ECGs decreased.

• Overseas sales increased 69.5% to ¥8.1 billion. Sales of EEGs increased favorably in North America and Asia & Other on a comparable basis excluding the impact of the consolidation of Ad-Tech. Sales of ECGs also increased in Asia & Other.

  	First half FY2024	First half FY2025	YoY (%)
  Patient Monitors	38,478	37,559	- 2.4
  Clinical Information Systems	1,822	1,998	9.7
  Domestic Sales	20,630	19,990	- 3.1
  Overseas Sales	17,847	17,568	- 1.6

  6.2) Patient Monitors

  (Sales, millions of yen)

  NEW!

  NEW!

  Bedside monitors Bedside monitor

  SpO2probe

  for esCCO measurement

  cap-ONE

  mask

  ECG

  electrodes

  CSM-1500/1700

  BSM-5700

  Telemetry system

  WEP-1600

  Central monitor

  CNS-2101

  Dashboard software for

  monitoring patient condition

  QH-101N

  Consumables

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  +3% on a local currency basis.

  Sales in North America, Latin America, and Europe decreased compared to the strong growth in FY2024 1H. Sales in Asia & Other increased significantly due to large orders in Morocco and Saudi Arabia.

• Sales of Patient Monitors decreased 2.4% to ¥37.5 billion.

• Domestic sales decreased 3.1% to ¥19.9 billion. Sales of telemetry systems and transmitters decreased compared to the strong growth in the 1st half of FY2024. Sales of clinical information systems increased favorably. Sales of bedside monitors and consumables such as sensors also increased.

• Overseas sales decreased 1.6% to ¥17.5 billion, a 3% growth on a local currency basis. Sales in North America, Latin America, and Europe decreased compared to the strong growth in the 1st half of FY2024. Sales in Asia & Other increased significantly due to large orders in Morocco and Saudi Arabia.

  		First half FY2024	First half FY2025	YoY (%)
  Defibrillators (for Hospital and Ambulance)		3,890	4,066	4.5
  AEDs (Automated External Defibrillator)		11,495	12,158	5.8
  Pacemakers / ICDs		1,258	1,357	7.8
  Ventilators		3,769	4,738	25.7
  Other Treatment Equipment		4,030	3,966	- 1.6
  Treatment Equipment		24,444	26,287	7.5
  	Domestic Sales	14,648	14,682	0.2
  	Overseas Sales	9,795	11,604	18.5

  Domestic: Sales increased thanks to favorable sales of consumables. International: Sales in Europe and Asia & Other increased favorably.

  Domestic: Sales increased thanks to continued replacement demand and the launch of new products. International: Sales increased in all regions.

  Domestic: Sales decreased as business deals are more concentrated in FY2025 2H than usual. International: Sales increased significantly in North America, Latin America, and Europe, especially driven by sales growth of a mask-type ventilator in North America.

  （Ref.）AED Unit Sales (units)		54,700	60,100	9.9
  	Domestic Unit Sales (units)	29,500	33,600	13.9

  6.3) Treatment Equipment

  (Sales, millions of yen)

  NEW!

  Defibrillator Fully automatic AED Pacemaker

  TEC-1000 AED-3200 Zenex MRI

  Ventilators

  NKV-550/440/330

  Syringe pump control software for assisting Automated chest with total intravenous anesthesia compression device

  ROP-1680 ARM XR ACC

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• Sales of Treatment Equipment increased 7.5% to ¥26.2 billion. Domestic sales increased 0.2% to ¥14.6 billion. Overseas sales increased 18.5% to ¥11.6 billion.

• Sales of defibrillators increased due to favorable sales of consumables in Japan as well as favorable overseas sales, especially in Europe and Asia & Other.

• The overall sales volume of AEDs was 60,100 units, and sales increased 5.8% to ¥12.1 billion. Domestic sales increased favorably thanks to continued replacement demand and the launch of new products. Overseas sales increased in all regions.

• Sales of ventilators increased 25.7% to ¥4.7 billion. Domestic sales decreased as business deals are more concentrated in the 2nd half of FY2025 than usual. Overseas sales increased significantly in North America, Latin America, and Europe, especially driven by sales growth of a mask-type ventilator in North America.

  	First half FY2024	First half FY2025	YoY (%)
  Hematology Instruments	6,516	6,371	- 2.2
  Imaging Systems and Others *	11,871	11,848	- 0.2
  Other Medical Equipment	18,387	18,220	- 0.9
  Domestic Sales	14,304	14,314	0.1
  Overseas Sales	4,083	3,906	- 4.3

  6.4) Other Medical Equipment

  (Sales, millions of yen)

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

  Automated hematology analyzer

  MEK-9200

  Automated hematology Installation and

  and ESR analyzer maintenance services

  MEK-1305

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  Sales of hematology instruments and reagents decreased in Europe and Latin America compared to the strong growth in FY2024 1H.

• Sales of Other Medical Equipment decreased 0.9% to ¥18.2 billion.

• Domestic sales increased 0.1% to ¥14.3 billion. 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 as the Company focused on selling in-house products.

• Overseas sales decreased 4.3% to ¥3.9 billion. Sales of hematology instruments and reagents decreased in Europe and Latin America compared to the strong growth in the 1st half of FY2024.

  	FY2024	First half FY2025	Change			FY2024	First half FY2025	Change
  Current Assets	183,085	173,324	- 9,760		Current Liabilities	72,296	68,369	- 3,926
  Inventories	56,174	60,077	3,902		Interest-bearing Debt	26,030	25,669	- 361
  Property, Plant & Equipment	29,270	28,753	- 517		Non-current Liabilities	4,685	4,394	- 290
  Intangible Assets	27,653	25,212	- 2,441		Net Assets	181,294	173,815	- 7,479
  Investments & Other Assets	18,266	19,289	1,022
  Total Assets	258,276	246,579	- 11,696		Total Liabilities & Net Assets	258,276	246,579	- 11,696

  Inventory Turnover (months)

  6.2

  6.6

  Equity Ratio

  69.5%

  70.5%

  7) Financial Condition

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

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

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  [Reasons for the decrease of current assets]

  • Notes and accounts receivable decreased by ¥12.5 bil.

  • Inventories increased by ¥3.9 bil.

  Inventories of finished goods temporarily increased by ¥3.8 bil in preparation for starting operation of PLM/MES* systems and new plant in Tsurugashima.

• Total assets decreased by ¥11.6 billion to ¥246.5 billion due to a decrease in notes and accounts receivable.

• Inventory turnover was 6.6 months, as inventories of finished goods temporarily increased in preparation for starting operation of PLM/MES systems and the new plant in Tsurugashima.

  	First half FY2024	First half FY2025	Change
  Ⅰ. Cash flows from operating activities	7,888	11,740	3,852
  Ⅱ. Cash flows from investing activities	- 3,366	- 2,001	1,365
  Free cash flows	4,521	9,739	5,217
  Ⅲ. Cash flows from financing activities	- 5,034	- 3,179	1,854
  Effect of exchange rate change on cash and cash equivalents	- 672	- 84	587
  Net increase (decrease) in cash and cash equivalents	- 1,185	6,474	7,659
  Cash and cash equivalents at end of period	48,692	49,535	843

  FY2024 1H FY2025 1H Change

  Income before income taxes

  1.9 6.7 +4.8

  Decrease (increase) in accounts receivable

  14.1 13.4 -0.7

  Decrease (increase) in inventories

  0.8 -4.1 -4.9

  Increase (decrease) in accounts payable

  -2.3

  Income taxes paid

  -5.3

  -0.9

  +1.3

  -3.7

  +1.6

  8) Cash Flows

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

  (Billions of yen)

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• Cash and cash equivalents at the end of the period increased by ¥6.4 billion to

¥49.5 billion.

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

• FY2025 capital investments 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 bil

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

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

  MES: Started operation in Nov. 2025

  Establishment of new plant in Tsurugashima City

  Total investments: approx. ¥11 bil

  FY2022: ¥2.3 bil (Acquisition of the site)

  ~FY2024: ¥4.1 bil, FY2025: ¥3.2 bil

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

  Construction: Started in July 2024

  Completed in Oct. 2025

  Operation: Planned to start in 2026

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

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• Capital investments, depreciation, and R&D costs were ¥1.7 billion, ¥2.1 billion, and ¥3.3 billion, respectively.

• There is no change to our forecast for full-year capital investments.

The forecasts for depreciation and R&D costs were revised to ¥5.0 billion and

¥7.4 billion, respectively.

2

Forecast for FY2025

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2

1. Business Environment

   The global economic outlook is uncertain due to escalating protectionism and fragmentation, and prolonged uncertainty caused by geopolitical risks and policy trends in each country.

   Japan

   Securing medical staff and promoting reforms in their work style.

   • Medical service fees rose by 0.88% in June 2024.

     Higher basic fees for wage increase, promoting DX in medical fields, infection control measures, and task shifting.

     Deepening integrated community care systems. Differentiating medical institution functions and strengthening collaboration.

   • Funds for securing comprehensive medical and long-term care in the community: FY2025 budget ¥90.9 bil for medical care

     Deterioration of medical institutions' business due to price and wage inflation.

   • Urgent support for medical institutions' business:

     FY2025 budget ¥131.1 bil for improving productivity and workplace environments as well as optimizing the number of hospital beds

     International U.S. and Europe

   • In the U.S., future policy trends such as proposed budget cuts to public health insurance should be monitored carefully.

   • In Europe, demand for medical devices is recovering moderately, while policy trends in each country should be monitored carefully.

     Emerging Markets

   • New standards and preferential treatment for domestically produced products are to be enforced in China.

   • Moves to protectionism and tightening of laws and regulatory requirements for medical devices in each country.

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• The global economic outlook remained uncertain due to escalating protectionism and fragmentation as well as prolonged uncertainty caused by higher geopolitical risks and policy trends in each country.

• In Japan, business sentiment in medical institutions declined and proportion of operating deficits increased due to price and wage inflation.

• Internationally, policy trends in the U.S. and Europe should be monitored carefully. In China, new standards and preferential treatment for domestically produced products are to be enforced. In emerging countries, there are further moves towards protectionism and tightening of regulatory requirements for medical devices.

• The Company is required to react promptly to such rapid changes in the global business environment and to meet the growing needs of medical institutions for solutions which contribute to improving the quality and efficiency of medical care.

  2) Forecast for FY2025

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

  Breakdown of overseas sales by region

  Average Exchange Rate

  FY2025 2H

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  17

  168 yen

+ ¥0.4 bil from original forecast

+17% on a local currency basis (+11% on a local currency basis excluding impact of consolidation of Ad-Tech)

• Overall sales are expected to increase 6.5% over FY2024 to ¥240 billion and domestic sales are expected to increase 2.9% to ¥149.4 billion. Overseas sales are expected to increase 13% to ¥90.6 billion, an 11% growth on a comparable basis excluding the currency effect and the impact of the consolidation of

  Ad-Tech.

• Domestic sales are expected to fall short of the Company's original forecast by

  ¥0.4 billion, reflecting lower-than-expected sales of locally purchased products. Overseas sales are expected to exceed the original forecast by ¥0.4 billion, reflecting greater-than-expected depreciation of yen in currency translation.

• The full-year forecast for operating income remains unchanged at ¥24 billion as originally planned. Although operating income fell short of its internal plan in the 1st half, the Company continues to improve gross profit margin and restrain the increase of SG&A expenses through the reform of the profit structure of the entire Group. The full-year forecast for income attributable to owners of parent was revised to ¥12.5 billion, as the Company will record some expenses as extraordinary losses due to the implementation of the Career Change Support Program and Next Career Support Program for Employees.

• The assumed exchange rates for the 2nd half are 146 yen to the U.S. dollar and 168 yen to the euro.

  Operating Income

  FY2024 207

  Impact of increase in sales

  +108

  • Increase in sales +89 (Impact of Ad-Tech:

  30% or more)

  Increase in other SG&A such as Personnel Expenses

  -38

  Impact of Ad-Tech: approx. 35%

  Increase in Depreciation and R&D costs

  -15

  Increase in amortization of goodwill

  -15

  Currency effect

  -7

  • Higher GPM

  +19

  16

  FY2025 240

  Benefit from reform of profit structure

  Approx. 2.5%pt

  (YoY +1.7%pt)

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  Impact of Ad-Tech: approx. 35%

  • Latin America: Delay in budget execution in Mexico

  • Europe: Taking time to comply with laws and regulations

  • Asia & Other: Delay in demand recovery in China, Taking time to comply with laws and regulations

  AED Unit Sales in Japan

  FY2024: 63,800 units

  FY2025: 63,600 units

  sales of locally purchased products, as the Company focuses on selling

  in-house products

  FY2025 2,400

  Currency effect

  -30

  Actual increase in overseas sales

  +134

  AED sales increase in Japan

  +1

  Sales increase in Japanese hospital and clinic market

  +41

  Lower-than-expected

  FY2024 2,254

  (¥100 million)

  3) Analysis of FY2025 Forecast

  Sales

  Impact of consolidation of Ad-Tech

  • OP before amortization of goodwill +15

  • Amortization of goodwill -15

• We revised the figure of sales increase in Japanese hospital and clinic market to

  ¥4.1 billion. The Company continues to enhance sales activities and receive orders for medical equipment and IT systems that contribute to improving the quality and efficiency of medical care, while capital expenditure in medical institutions is still cautious. We revised the full-year sales of AEDs to increase by

  ¥0.1 billion and the volume of sales to 63,600 units.

• As for overseas sales, the actual increase in sales and negative currency effect will be ¥13.4 billion and ¥3 billion, respectively. In the 2nd half, sales of Patient Monitors are expected to recover and sales of neurology products and ventilators are also expected to increase favorably in North America, as the Company expected at the beginning of the fiscal year. On the other hand, sales in Europe and Asia & Other are now expected to be below the original expectations , because it takes time to comply with laws and regulations in relation to matters such as radio equipment and transport of batteries, as well as the delay in the recovery of demand for medical devices in China.

• The Company aims at achieving the target for operating income by continuing to restrain the increase of SG&A expenses, while the positive impact of the increase in sales is expected to be smaller than originally anticipated due to lower-than-expected actual sales excluding the positive currency effect.

  	FY2024 Actual	FY2025			YoY (%)
  		Original forecast announced May 13	Revised forecast announced Nov 10	Composition ratio (%)
  Physiological Measuring Equipment	46,874	53,200	54,600	22.8	16.5
  Patient Monitors	84,965	89,000	86,600	36.1	1.9
  Treatment Equipment	53,184	56,600	58,100	24.2	9.2
  Other Medical Equipment	40,400	41,200	40,700	16.9	0.7
  Total	225,424	240,000	240,000	100.0	6.5

  Medical Dervices	113,304	120,800	117,600	49.0	3.8
  Consumables and Services	112,119	119,200	122,400	51.0	9.2

  	Sales	Operating Income
  US Dollar	0.44 bil yen	0.09 bil yen
  EURO	0.06 bil yen	0.02 bil yen

  (Ref.) Consolidated Forecast for FY2025 by Product Category/

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

  (Reference)

  Estimated Exchange Rate Fluctuations for Full Fiscal Year

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  19

  
  
  

• The consolidated sales forecast by product category has been revised based on the 1st-half results.

• The sensitivity to foreign exchange rates is as shown above.

  3

  Business Strategy

  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved

  20

  
  
  

  3

  21

  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved

  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.

  Core Values

  PhaseⅢ: Realize BEACON 2030

  PhaseⅡ: Invest for growth PhaseⅠ: Strengthen foundation

  Apr. 2027 - Mar. 2030

  Apr. 2024 - Mar. 2027

  Apr. 2021 - Mar. 2024

  Three-year Business Plan

  45%

  Overseas Sales Ratio

  15%

  Operating Margin

  Targets for FY2029

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

  Management Philosophy

  Long-term Vision 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.

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

  
  
  

• In its Long-term Vision, BEACON 2030, Nihon Kohden aims to create a better future for people and healthcare by solving global medical issues.

• The Three-year Business Plan, which started from FY2024, is the 2nd phase in realizing our Long-term Vision.

  Three Transformation for BEACON 2030

  1

  • 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

    2

  • 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.

  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved 22

• The Company has set three transformations in its Long-term Vision, BEACON 2030. First, "Transform into a global company creating high added value", second, "Create a solution business providing superior customer value", and third, "Establish a global organization founded on operational excellence".

• There is no change in the direction Nihon Kohden is aiming for as we look toward 2030, despite global trends changing drastically. Rather, we believe

  that the importance of these three transformations for establishing a medium- to long-term competitive advantage for Nihon Kohden is increasing.

  1) Growth Sales CAGR FY2023 - FY2026 5% Enhance product competitiveness Focus on growth of North America Business

  2) Profitability Operating income margin in FY2026 15% Implement the reform of the profit structure Advance global supply chain management

  3) Capital efficiency ROE in FY2026 12% Introduce Nihon Kohden's own ROIC formula Reduce cash conversion cycle

  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

  23

  Social issues

• In the Three-year Business Plan, the Company will implement the reform of the profit structure and make investments in growth areas, and accelerate our transformation into a global MedTech company.

• The Company aims to achieve targets for three indicators: growth, profitability, and capital efficiency, by conducting six key measures including "Enhance product competitiveness", "Focus on growth of North America Business", and "Implement the reform of the profit structure".

  24

  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved

  Treatment

  Equipment Business

  Patient Monitoring Business

  New products and services in FY2025

  Solution Business (ITS✢DHS) Growth

  Launched in Japan in FY2024 4Q

  Launched in the U.S. in FY2025 1Q

  Improve operational efficiency and medical safety through accurate time synchronization and regular checks of self-test results and consumable expiration dates

  Defibrillator

  Ventilator

  Launched in Japan in FY2025 1Q

  Patient Monitor

  Hematology Analyzer

  MD Linkage medical device remote monitoring system

  • Added Defibrillator Management Content

  Launched in the U.S. in FY2025 2Q Planned to launch in Europe in FY2025 3Q

  • Analyze and display alarm trends across the hospital for up to 90 days on the dashboard

  • Reduce alarm fatigue for medical staff and contribute to medical safety by identifying false alarms and optimizing alarm thresholds

  Launched in Japan in FY2025 1Q

  Fully automatic AED AED-3200

• To enhance product competitiveness, we launched a series of new products and services as shown above.

• In Solution Business, we developed and started alarm solutions in the U.S., which analyze and display alarm trends across hospitals on the dashboard. We expect to reduce alarm fatigue for medical staff.

• We also added Defibrillator Management Contents into MD Linkage, our medical device remote monitoring system. We expect that it will improve operational efficiency and medical safety through accurate time synchronization and regular checks of self-test results and consumables expiration dates.

• In the 2nd half of FY2025, we will launch new models of transmitters in Japan, which are compact and lightweight, and offer longer time battery life.

  
  
  Growth Japan: Strengthen the customer base and achieve sustainable growth by enhancing customer value propositions

  Discontinuation of providing Abbott products in Japan

  (Sales) FY2024: ¥24.4 billion FY2025 1H: ¥13.3 billion

  Decided to terminate distribution partnership agreement on expiration date of Dec. 31, 2026, with the consent of both companies,

  after reviewing our business portfolio as part of our transformation into a global company creating high added value

  to realize our Long-term Vision toward 2030

  [Future outlook] FY2025: Minor

  • Transfer of operations in a phased manner from Oct. 2025 to Dec. 2026

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

    Strengthening sales capabilities in growth areas such as ventilators and DHS

    FY2026: Currently under review and scheduled to be announced in May 2026

    Implementation of Career Change / Next Career Support Program for Employees

    Estimated number of applicants: Approx. 200 in total for both programs

    Application period: Dec. 1 to Dec. 23, 2025 (tentative) Retirement date: Jan. 31, 2026 (tentative)

    [Future outlook] FY2025: Extraordinary losses of approx. ¥2.4 bil will be recorded.

    FY2026: SG&A expenses are expected to decrease by approx. ¥2.3 bil.

    © Copyright NIHON KOHDEN CORPORATION All Rights Reserved 25

• In Japan, we have decided to terminate the distribution partnership agreement for Abbott products, which we have provided for the past 38 years, effective on the expiration date of December 31, 2026, with the consent of both companies.

• After reviewing the Company's business portfolio as part of its transformation into a global company creating high added value to realize its Long-term Vision toward 2030, the Company made this decision, because the decline in profitability of Abbott products was an issue. In the future, we aim to achieve medium- to long-term growth in domestic business by further focusing on providing our in-house products, consumables, and services, as well as strengthening our sales capabilities in new growth areas such as ventilators and digital health solutions.

  The impact of this matter on the consolidated results for FY2025 is expected to be minor. The impact on the consolidated results for FY2026 is currently under review and will be released in May 2026.

• In addition, the Company will implement the Career Change Support Program and Next Career Support Program for Employees. The Company expects around 200 applicants and will record some expenses of around ¥2.4 billion as extraordinary losses. SG&A expenses are expected to decline by around ¥2.3 billion in FY2026.

  
  
  

  Focus on growth of North America Business

• • Neurology Products: Ad-Tech became a wholly owned subsidiary in July 2025, Sales/income of Ad-Tech are generally in line with the plan. Increasing demand for home sleep recorders

  • Patient Monitors: Make differentiation through enhancing proposals of DHS products such as

    remote monitoring solution and alarm solution

  • AED: Sales recovery as inventory adjustments at distributors settled down

  • Ventilators: Continued to sign new contracts with major IDNs/GPOs,

    Our market share of mask-type ventilators in the U.S. was 30% or more in 2024*2

    Sales composition by product category

    DHS Products

    Umass Memorial Health adopted

    in North America (FY2024 1H ⇒ FY2025 1H)

    Physiological

    RemoteSense remote monitoring solution

    Sales

    Consumables and Services

    29%⇒35%

    Measuring Equipment

    12%⇒22%

    • 24/7 remote monitoring for approx. 50 patients across six ICUs

    • Streamlining operations by seamless integration with existing hospital information systems

    composition of DHS products: approx. 9%

    in Patient Monitors

    (FY2025 1H)

    Treatment Equipment

    24%⇒26%

    Sales

    ¥22.3 bil

    Medical Devices

    71%⇒65%

    Patient Monitors

    63％⇒49％

    *1 IDN: Integrated Delivery Network, GPO: Group Purchase Organization, DoD: Department of Defense, VA: Veterans Affairs. *2 Company's estimate.

    © Copyright NIHON KOHDEN CORPORATION All Rights Reserved 26

• In North America, Ad-Tech became a wholly owned subsidiary in July 2025. Sales and income are generally in line with expectations. We are continuing to focus on creating synergies.

• In our fast-growing Ventilator Business, we have continued to sign new contracts with major IDNs/GPOs. We estimate that our market share of mask-type ventilators in the U.S. was 30% or more in 2024.

• In our Patient Monitoring Business, we are enhancing our proposals in combination with DHS products. The RemoteSense, a remote monitoring solution, has been adopted and highly evaluated by well-known hospitals such as Umass Memorial Health, because it contributes to improving operational efficiency and medical safety. We continue to enhance our presence in North America.

2008

2011

2015

2017

2024

NEW!

2025

Established joint venture company for production and sales of reagents

Established sales subsidiary

Consolidated reagent joint venture company as wholly owned subsidiary

Absorbed reagent subsidiary into sales subsidiary

Started operation of new reagent factory

Established Advanced Technology Center

• Accelerate development of DHS products

• Bolster development and maintenance capabilities for corporate IT systems

  2012

  2017

  2021

  NEW!

  2025

  Established sales subsidiary in Dubai, UAE Established sales branch in Kenya

  Started operation of reagent factory in Dubai, UAE

  Established sales subsidiary in Saudi Arabia

  • Prepare to strengthen sales and service activities, including support for local distributors in Saudi Arabia and neighboring countries

    © Copyright NIHON KOHDEN CORPORATION All Rights Reserved 27

    • In Rest of World, we have established an Advanced Technology Center in the rapidly growing Indian market. We will accelerate to develop DHS products and bolster our development and maintenance capabilities for corporate IT systems.

    • We have also established a sales subsidiary in Saudi Arabia and are preparing to strengthen our sales and service activities, including support for local distributors in the Middle East.

      
      
      

      Implement the reform of the profit structure

Profitability

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

  FY2026

  Target

  improvement 5%pt

• 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 implementing measures in three key areas to improve profitability

OPM improvement

F

F F

Area Theme

Details of measures

targets/estimations* Progress in FY2025 1H

Product mix

Productivity

Supply chain

Apx.

2％

Apx.

2％

Apx.

1％

Y24 Y25 Y26

* Image of estimated margin improvement as of the end of FY2025 1H

© Copyright NIHON KOHDEN CORPORATION All Rights Reserved 28

• The progress of the reform of the profit structure is shown above.

• We aim at improving operating income margin by 500 bps by FY2026 ending March 2027 through implementing the reform of the profit structure. In the 1st half of FY2025, we realized around 170 bps improvement compared to the 1st half of FY2024. In the FY2025 full-year forecast, we also expect around 170 bps improvement, which is in line with our original expectations. We will further accelerate the implementation of measures in three key areas to improve profitability.

• In the area of the product mix, in addition to raising selling prices both in Japan and internationally, we are strengthening our control over selling prices.

• In terms of productivity, the usage rate of generative AI has increased significantly. We are working to restrain the increase of headcount and overtime hours by improving operational efficiency. We have reviewed several contracts and expect to see the effects of the relocation or consolidation of offices in the 2nd half of FY2025.

• In terms of supply chain, we continue price negotiations with suppliers and the review of suppliers. We are also focusing on cost reduction through promoting Value Engineering at factories in Japan, the U.S., and China.

  29

  MES system

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

  © Copyright NIHON KOHDEN CORPORATION All Rights Reserved

  Mainte

  -nance

  Shipping

  Production

  Utilizing design data in SCM

  Production Preparation

  Utilizing production and post-marketing data in PLM

  Procure

  -ment

  Acquired plant site

  Started construction

  Completed construction

  Planned to start operation

  Mar. 2023

  Jul. 2024

  Oct. 2025

  2026

  Sep. 2025 Started operation of PLM system

  Nov. 2025 Started operation of MES system

  PLM system

  Design & Development

  Construction of new plant in Tsurugashima City

  Production of consumables such as sensors and R&D of automated production technology

  PLM/MES Systems

  Promoting corporate DX in R&D and production departments

  NEW!

  Profitability

  Sale

• To advance our global supply chain management, we have promoted the introduction of PLM/MES systems as part of our corporate DX initiatives. We started operation of the PLM system in September 2025 and the MES system in November 2025. We aim to shorten the development time for new products and improve productivity by optimizing processes throughout the product lifecycle by keeping the operation of both systems on track.

• The construction of our new plant in Tsurugashima City, which is for production of consumables such as sensors and R&D of automated production technology, was completed in October 2025. We are preparing to start operations in 2026.