Notice Regarding Revision of Earnings Guidance

Details of Earnings Guidance Revision

Nihon Kohden Corporation has revised its consolidated earnings guidance for the fiscal year ending March 2026. Net sales are forecasted at 235 billion yen (a decrease of 5 billion yen from the previous forecast), operating income at 20 billion yen (a decrease of 4 billion yen), and ordinary income at 22 billion yen (a decrease of 2 billion yen). Meanwhile, net income attributable to owners of parent is maintained at 12.5 billion yen. The primary reasons for the sales decline include restrained or postponed budget execution at domestic universities and public hospitals, and inventory adjustments by AED distributors. Overseas, despite a yen depreciation trend, the decision-making process for transactions in North America has become more cautious, and additional time is required to comply with regulatory requirements in Asia.

Outlook and Response Measures

The company will focus on expanding the consumables and services business and work on securing new medical device and IT system transactions. On the profit front, efforts will be made to control SG&A expense growth; however, operating income is expected to decline due to a decrease in gross profit margin. For foreign exchange assumptions, the company anticipates 154 yen/USD and 184 yen/EUR from the fourth quarter onward, with annual rates of 150 yen/USD and 174 yen/EUR. All departments will work unitedly to enhance shipments, deliveries, and installations toward the fiscal year-end.