Interim report
Page 1
Consolidated Financial Results for the Nine Mohths Ended December 31,2025 [IFRS] Revenue Operating profit Profit before taxes Profit Profit attributable to owners of parent Comprehensive income Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2025 269,251 0.9 17,108 0.5 2,503 △80.0 534 △93.0 695 △90.9 22,116 124.6 December 31, 2024 266,910 4.0 17,028 - 12,491 - 7,581 - 7,639 - 9,845 - Basic earnings per share attributable to owners of parent Diluted earnings per share attributable to owners of parent Nine months ended Yen Yen December 31, 2025 5.50 5.47 December 31, 2024 60.58 60.33 February 12, 2026 Company Name: PHC HOLDINGS CORPORATION Stock Code: 6523 (URL: https://www.phchd.com/global/ir) Stock Exchange Listing: Tokyo Representative: Kyoko Deguchi, Chief Executive Officer Contact: Masashi Kimura, Executive General Manager of Corporate Administration Department Phone: +81-3-5408-7280 Scheduled date to commence dividend payments: － Availability of supplementary briefing material on the Third Quarter results: Yes Scheduled date of the Third Quarter Results Briefing Session: Yes (Figures are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Nine Months Ended December 31, 2025 (From April 1, 2025 to December 31, 2025) (1) Consolidated Results of Operations (% indicates changes from the previous corresponding term) (Note) Share of profit (loss) of investments accounted for using equity method: December 31, 2025… 69 million yen December 31, 2024… (274) million yen - 1 -
Page 2
Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets As of Millions of yen Millions of yen Millions of yen % December 31, 2025 552,667 158,610 159,287 28.8 March 31, 2025 532,482 141,171 141,639 26.6 Annual cash dividends per share First quarter end Second quarter end Third quarter end Fiscal year end Total Fiscal year ended Yen Yen Yen Yen Yen March 31, 2025 - 21.00 - 21.00 42.00 March 31, 2026 - 21.00 - Fiscal year ending March 31, 2026 (Forecast) 21.00 42.00 Revenue Operating profit Profit before taxes Profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year ending March 31, 2026 363,100 0.4 20,000 (11.4) 4,400 (76.6) 2,000 (80.7) 2,000 (80.9) 15.82 (2) Consolidated financial position 2. Cash dividends (Note) Revision of cash dividends forecasts to the latest announcement: None 3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2026 (From April 1, 2025 to March 31, 2026) (% indicates year-on-year changes) (Note) 1. Revision of consolidated earnings forecasts to the latest announcement: Yes 2. For the details of the forecasts of consolidated earnings, please refer to P.14 "1. Qualitative information regarding financial performance, (4) Explanation regarding future prospects (ex. forecasted consolidated business results)" on the attached materials. - 2 -
Page 3
As of December 31, 2025 126,721,820 Shares As of March 31, 2025 126,410,072 Shares As of December 31, 2025 211,966 Shares As of March 31, 2025 211,941 Shares Nine months ended December 31, 2025 126,425,381 Shares Nine months ended December 31, 2024 126,110,111 Shares * Notes (1) Changes in significant subsidiaries during the current period (Changes in specific subsidiaries involving changes in the scope of consolidation): None Newly included: -companies Excluded: -companies (2) Changes in accounting policies, changes in accounting estimates 1) Changes in accounting policies required by IFRS: Not applicable 2) Changes in accounting policies other than 1): Not applicable 3) Changes in accounting estimates: Not applicable (3) Total number of issued shares (common stock): 1) Total number of issued shares at the end of the period (including treasury shares): 2) Total number of treasury shares at the end of the period: 3) Average number of outstanding shares during the period: Note 1: Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None Note 2: Explanation regarding proper use of the projected financial results and other notes: The forecasted statements shown in these materials are based on information currently available and certain assumptions that PHC Holdings Corporation regards as reasonable, and therefore the group's actual results may differ materially due to unknown several factors. - 3 -
Page 4
1. Qualitative information regarding financial performance (1) Explanation regarding operation results 5 (2) Explanation regarding financial position 13 (3) Explanation regarding cash flow 13 (4) Explanation regarding future prospects (ex. forecasted consolidated business results) 14 2. Condensed quarterly consolidated financial statement and significant notes (1) Condensed quarterly consolidated statement of financial position 16 (2) Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated statement of comprehensive income 18 (3) Condensed quarterly consolidated statement of changes in equity 20 (4) Condensed quarterly consolidated statement of cash flows 22 (5) Notes to condensed quarterly consolidated financial statements 23 Notes for going concern 23 Segment information 23 Revenue 26 Contents of attached documents: - 4 -
Page 5
1. Qualitative information regarding financial performance (1) Explanation regarding operation results During the nine months ended December 31, 2025 (hereafter “this period”), PHC Group generated revenue of JPY 269,251 million, up 0.9% compared to the same period of the previous year (hereafter “year on year”). In Diabetes Management, revenue increased due to robust sales in Continuous Glucose Monitoring (hereafter “CGM”) and Blood Glucose Monitoring (hereafter “BGM”) businesses in developed countries, as well as the positive impact of foreign exchange. In Healthcare Solutions, despite a decline in revenue from CRO business, overall revenue increased due to sales growth in genetic testing within LSIM business and in electronic medical records and medical-receipt systems within Healthcare IT Solutions business. In Diagnostics & Life Sciences, revenue decreased mainly due to stagnant market conditions, particularly in the U.S. Operating profit for this period was JPY 17,108 million, up 0.5% year on year. In Diabetes Management, operating profit increased significantly due to robust sales in BGM business, mainly in developed countries. In Healthcare Solutions, despite LSIM business achieving profit growth due to revenue growth and cost reductions, overall operating profit declined. This was due to the weaker demand for high-margin electronic prescriptions software in Healthcare IT Solutions business and decreased revenue in CRO business. Diagnostics & Life Sciences saw a decline in operating profit primarily due to lower revenues, the impact of U.S. tariffs, and the transfer of corporate functions described below. Adjusted EBITDA was JPY 38,136 million, down 0.4% year on year. Adjustment items include one-time income/expense relating to restructuring (additions of JPY 905 million in this period and JPY 666 million in the same period of the previous fiscal year, hereafter “the previous period”) and other one-time income/expense (subtractions of JPY 278 million in this period and JPY 636 million in the previous period). Profit before tax was JPY 2,503 million, down 80.0% year on year. Despite a decrease in interest expenses, this decline was due to foreign exchange losses of JPY 10,474 million recorded during this period, compared to JPY 76 million in the previous period. Profit attributable to owners of parent was JPY 695 million, down 90.9% year on year. Please note that, starting from this period, we have reviewed corporate functions and transferred some headquarters roles to each business. While this transfer does not affect the consolidated financial results, it does have an impact on profit by segment. The impact on actual results for this period is described in the operating profit and adjusted EBITDA situation for each segment. - 5 -
Page 6
Nine months ended December 31, 2024 (million yen) Nine months ended December 31, 2025 (million yen) Change Revenue 266,910 269,251 0.9% Operating profit 17,028 17,108 0.5% EBITDA 38,250 37,390 (2.2%) Adjusted EBITDA 38,307 38,136 (0.4%) Profit (loss) before tax 12,491 2,503 (80.0%) Profit (loss) 7,581 534 (93.0%) Profit (loss) attributable to owners of parent 7,639 695 (90.9%) Average exchange rate JPY/USD JPY 152.46 JPY 148.65 JPY (3.81) Average exchange rate JPY/EUR JPY 164.76 JPY 171.86 JPY 7.10 Nine months ended December 31, 2024 (million yen) Nine months ended December 31, 2025 (million yen) Change Operating profit 17,028 17,108 0.5% + Depreciation 21,338 20,280 (5.0%) + Impairment loss (excluding marketable securities) (117) 1 － EBITDA 38,250 37,390 (2.2%) (Adjusted amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs 27 119 340.7% + One-time income/expense relating to restructuring 666 905 35.9% + One-time income/expense relating to disposal/sales of asset － － － + Other one-time income/expense (636) (278) － Adjusted EBITDA 38,307 38,136 (0.4%) (Note) EBITDA and Adjusted EBITDA are not measures in accordance with IFRS Accounting Standards. However, PHC Holdings Corporation believes that this disclosure may be useful information to investors. 【Calculation table of EBITDA and adjusted EBITDA】 (Note) EBITDA and adjusted EBITDA are calculated with the following formulas: EBITDA = Operating profit + depreciation + impairment loss (excluding marketable securities) Adjusted EBITDA = EBITDA + one-time income and expenses - 6 -
Page 7
Nine months ended December 31, 2024 (million yen) Nine months ended December 31, 2025 (million yen) Change Revenue 74,214 77,077 3.9% Operating profit 10,544 14,737 39.8% EBITDA 15,415 18,261 18.5% Adjusted EBITDA 15,780 18,901 19.8% Nine months ended December 31, 2024 (million yen) Nine months ended December 31, 2025 (million yen) Change Operating profit 10,544 14,737 39.8% + Depreciation 4,951 3,524 (28.8%) + Impairment loss (excluding marketable securities) (80) － － EBITDA 15,415 18,261 18.5% (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs － － － + One-time income/expense relating to restructuring 373 640 71.6% + One-time income/expense relating to disposal/sales of asset － － － + Other one-time income/expense (8) － － Adjusted EBITDA 15,780 18,901 19.8% The business performance by segment is as follows: Diabetes Management (Calculation table of EBITDA and adjusted EBITDA) (Note) EBITDA and adjusted EBITDA are calculated with the following formulas: EBITDA = Operating profit + depreciation + impairment loss (excluding marketable securities) Adjusted EBITDA = EBITDA + one-time income and expenses <Revenue Situation> Revenue of Diabetes Management for this period was JPY 77,077 million, up 3.9% year on year. Despite ongoing market contraction and the shift to low-priced channels in developed markets, revenue in BGM business increased due to the reduced impact of the termination of sales collaboration and the success of initiatives that improved unit prices and increased sales volumes in the U.S. Additionally, solid performance in Europe and the positive impacts of foreign exchange contributed to the revenue growth. In CGM business, revenue increased in the U.S. due to Eversense 365 system, which was launched during the third quarter of the previous fiscal year, allowing users one year of uninterrupted use. <Operating Profit and Adjusted EBITDA Situation> Operating profit in Diabetes Management for this period was JPY 14,737 million, up 39.8% year on year. Despite the negative impact of JPY 211 million from the earlier-mentioned transfer of some corporate functions and the expenses related to the transfer of CGM business, operating profit increased significantly. This was due to solid performance in BGM business in developed countries, improved profit margins through price initiatives, cost reduction with restructuring to date, lower depreciation expenses, and improvements in CGM business. Adjusted EBITDA was JPY 18,901 million, up 19.8% year on year. Adjustment items included one-time - 7 -
Page 8
income/expense relating to restructuring (additions of JPY 640 million in this period and JPY 373 million in the previous period, respectively). - 8 -
Page 9
Nine months ended December 31, 2024 (million yen) Nine months ended December 31, 2025 (million yen) Change Revenue 94,202 95,218 1.1% Operating profit 5,959 4,929 (17.3%) EBITDA 13,404 12,731 (5.0%) Adjusted EBITDA 13,431 12,851 (4.3%) Nine months ended December 31, 2024 (million yen) Nine months ended December 31, 2025 (million yen) Change Operating profit 5,959 4,929 (17.3%) + Depreciation 7,445 7,802 4.8% + Impairment loss (excluding marketable securities) － － － EBITDA 13,404 12,731 (5.0%) (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs 26 119 357.7% + One-time income/expense relating to restructuring － － － + One-time income/expense relating to disposal/sales of asset － － － + Other one-time income/expense － － － Adjusted EBITDA 13,431 12,851 (4.3%) Healthcare Solutions (Calculation table of EBITDA and adjusted EBITDA) (Note) EBITDA and adjusted EBITDA are calculated with the following formulas: EBITDA = Operating profit + depreciation + impairment loss (excluding marketable securities) Adjusted EBITDA = EBITDA + one-time income and expenses <Revenue Situation> Revenue of Healthcare Solutions for this period was JPY 95,218 million, up 1.1% year on year. A breakdown includes LSIM business at JPY 50,682 million, up 1.6% year on year, Healthcare IT Solutions business at JPY 39,176 million, up 3.4% year on year, and CRO business at JPY 5,360 million, down 16.6% year on year. In LSIM business, despite the impact of inappropriate quality management, revenue increased slightly due mainly to the sales growth in genetic testing, one of LSIM’s growth initiatives. In Healthcare IT Solutions business, sales related to electronic medical record and medical-receipt systems offset the impact of lower demand for electronic prescription software, resulting in increased revenue. In CRO business, revenue declined primarily due to lower clinical trial orders, partly attributed to the LSIM's inappropriate quality management, as well as the completion of large-scale safety testing in the non-clinical testing business during the previous period. <Operating Profit and Adjusted EBITDA Situation> Operating profit in Healthcare Solutions for this period was JPY 4,929 million, down 17.3% year on year. In LSIM business, profit grew through higher revenue and cost reduction efforts. However, in Healthcare IT Solutions business, despite increased revenue from the electronic medical record and medical-receipt systems, operating profit declined due to lower demand for high-margin electronic prescription software, higher depreciation costs due to new product launches, and rising purchase prices for IT equipment among other factors. - 9 -
Page 10
Additionally, operating profit from CRO business decreased due to the lower revenue. The reduction due to the earlier-mentioned transfer of some corporate functions was JPY 60 million. Adjusted EBITDA was JPY 12,851 million, down 4.3% year on year. Adjustment items include one-time income/expense relating to transformational M&A pre-acquisition and integration costs (additions of JPY 119 million in this period and JPY 26 million in the previous period, respectively). - 10 -
Page 11
Nine months ended December 31, 2024 (million yen) Nine months ended December 31, 2025 (million yen) Change Revenue 96,060 92,392 (3.8%) Operating profit 6,722 2,337 (65.2%) EBITDA 15,180 10,845 (28.6%) Adjusted EBITDA 14,683 10,569 (28.0%) Nine months ended December 31, 2024 (million yen) Nine months ended December 31, 2025 (million yen) Change Operating profit 6,722 2,337 (65.2%) + Depreciation 8,458 8,506 0.6% + Impairment loss (excluding marketable securities) － 1 － EBITDA 15,180 10,845 (28.6%) (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs － － － + One-time income/expense relating to restructuring 134 2 (98.5%) + One-time income/expense relating to disposal/sales of asset － － － + Other one-time income/expense (631) (278) － Adjusted EBITDA 14,683 10,569 (28.0%) Diagnostics and Life Sciences (Calculation table of EBITDA and adjusted EBITDA) (Note) EBITDA and adjusted EBITDA are calculated with the following formulas: EBITDA = Operating profit + depreciation + impairment loss (excluding marketable securities) Adjusted EBITDA = EBITDA + one-time income and expenses <Revenue Situation> Revenue of Diagnostics and Life Sciences for this period was JPY 92,392 million, down 3.8% year on year. This includes JPY 42,600 million in Pathology business, down 1.5% year on year, JPY 36,553 million in Biomedical (PHCbi) business, down 4.2% year on year, and JPY 13,238 million in IVD business, down 9.7% year on year. In Pathology business, revenue slightly declined. In Europe, revenue grew by the steady performance of consumables and microscope slides, as well as the large-scale projects for digital pathology products during the first quarter of this fiscal year. Additionally, in the Asia Pacific, revenue increased due to higher sales by portfolio expansion, including self-manufactured digital pathology products in China. However, they were not sufficient to offset the continued softness in equipment demand in the Americas. In Biomedical (PHCbi) business, revenue decreased due to lower demand caused by U.S. policies, despite signs of recovery in Europe, Japan, and other areas. In the Americas, while mid-sized projects for pharmaceutical and biopharmaceutical companies are gradually increasing, demand remains slow due to ongoing budget cuts at US government agencies, universities, and research institutions. In EMEA, revenue increased, driven by higher orders from pharmaceutical companies and strong demand from universities and research institutions in France, generally favorable performance in other countries, and the positive impact of foreign exchange rates. In Japan, revenue increased by large-scale projects, including the construction of new facilities for pharmaceutical companies, universities, and research institutions. In IVD business, revenue declined mainly due to lower sales of reagents for PATHFAST™ Immunoanalyzer and - 11 -
Page 12
automated analyzers in Russia, as well as the lower demand in China with reduced numbers of testing. Additionally, the decline in sales of digital injectors and the absence of one-time revenue recorded in the previous period contributed to the decrease. <Operating Profit and Adjusted EBITDA Situation> Operating profit in Diagnostics and Life Sciences for this period was JPY 2,337 million, down 65.2% year on year. While other income due to changes in the classification of affiliated companies and cost reduction through manufacturing plan optimization, the impact of lower revenues could not be offset through cost down initiatives. Additionally, the increased cost of JPY 819 million due to the earlier-mentioned transfer, the absence of one-time income recorded in IVD business during the previous period, and approx. JPY 1,500 million related to tariff impacts drove operating profit lower. Adjusted EBITDA was JPY 10,569 million, down 28.0% year on year. Adjustment items include other one-time income/expense (subtractions of JPY 278 million in this period and JPY 631 million in the previous period, respectively). - 12 -
Page 13
(2) Explanation regarding financial position Asset The balance of total assets in this period was JPY 552,667 million. The balance increased by JPY 20,184 million compared to the previous fiscal year-end. The balance increase primarily reflects goodwill increase of JPY 13,824 million due to the impact of weakened yen and cash and cash equivalents increased by JPY 5,282 million. On the other hand, property, plant and equipment decreased by JPY 4,544 million, intangible assets decreased by JPY 4,278 million mainly due to progress in depreciation. In addition, other financial assets decreased by JPY 3,663 million mainly due to the market valuation of securities. Liability The balance of total liabilities in this period was JPY 394,056 million. The balance increased by JPY 2,745 million compared to the previous fiscal year-end. The main reason is trade and other payables increased by JPY 10,730 million. In addition, borrowings decreased by net amount JPY 8,807 million primarily due to loan repayments and on the other hand increased due to the impact of weakened yen. Equity The balance of equity in this period was JPY 158,610 million. The balance increased by JPY 17,439 million compared to the previous fiscal year-end. Other components of equity increased by JPY 20,877 million, mainly due to translation difference of foreign operations. On the other hand, retained earnings decreased by JPY 3,808 million mainly due to JPY 5,306 million of dividends, despite JPY 695 million of profit attributable to owners of parent. In addition, the ratio of equity attributable to owners of parent to total assets increased by 2.2 points from 26.6% at the end of the previous fiscal year to 28.8%. (3) Explanation regarding cash flow Cash and cash equivalents at the end of this period amounted to JPY 44,875 million, an increase of JPY 5,282 million from March 31, 2025. The status of each cash flows from each activity and its drivers during this period are as follows: (Cash flows from operating activities) Net cash provided by operating activities was JPY 27,227 million, which was a decrease of JPY 449 million year on year. (Cash flows from investing activities) Net cash used in investing activities was JPY 5,792 million and consisted mainly of purchase of property, plant, and equipment, and intangible assets of JPY 6,175 million. The year-on-year decrease of JPY 425 million in net cash used in investing activities was mainly attributable to lower purchases of property, plant and equipment and intangible assets. (Cash flows from financing activities) Net cash used in financing activities of JPY 22,555 million consisted mainly of repayments of long-term borrowings of JPY 21,455 million, proceeds from long-term borrowings of JPY 4,228 million and repayments of lease liabilities of JPY 4,416 million. The decrease in net cash used in financing activities of JPY 8,107 million year on year was mainly due to the increase in proceeds from long-term borrowings. - 13 -
Page 14
Revenue (Million JPY) Operating profit (Million JPY) Profit before tax (Million JPY) Profit (Million JPY) Profit attributable to owners of parent (Million JPY) Basic earnings per share attributable to owners of parent (JPY) *Adjusted EBITDA (Million JPY) Previously announced forecasts (A) 363,100 20,000 8,000 4,500 4,400 34.80 47,800 Revised forecasts (B) 363,100 20,000 4,400 2,000 2,000 15.82 47,800 Change (B-A) － － (3,600) (2,500) (2,400) (18.98) － Change (%) － － (45.0) (55.6) (54.5) (54.5) － (Reference) Actual consolidated results for the previous fiscal year (Fiscal year ended March 31, 2025) 361,593 22,580 18,823 10,364 10,485 83.13 50,095 (4) Explanation regarding future prospects (ex. forecasted consolidated business results) Revisions to consolidated financial results forecasts for the fiscal year ending March 31, 2026 (April 1, 2025 through March 31, 2026) (Note) Adjusted EBITDA is calculated with the following formulas: Adjusted EBITDA = EBITDA + one-time income and expenses EBITDA = Operating profit + Depreciation + Impairment loss (excluding marketable securities) *Adjusted EBITDA is not a measure in accordance with IFRS Accounting Standards. However, PHC Holdings Corporation believes that these disclosures may be useful information to investors. In the third quarter of this fiscal year, foreign exchange losses of JPY 3,632 million were recorded as financial expenses due to fluctuations in the foreign exchange rates. This is primarily due to the foreign exchange valuation related to Euro-denominated loans from the consolidated subsidiaries of the Company. Incorporating these foreign exchange losses, the full-year financial forecast has been revised. Regarding revenue, operating profit, and adjusted EBITDA, the results up to the nine months ended December 31, 2025 have progressed, exceeding expectations compared to the previously announced forecast. However, reflecting the market outlook conservatively, the total amounts and segment breakdowns remain unchanged at this point of time. Incorporating the foreign exchange losses recorded in the third quarter of this fiscal year and the related tax expenses, profit before tax has been revised downward by JPY 3.6 billion to JPY 4.4 billion. Profit attributable to owners of parent has been revised downward by JPY 2.4 billion to JPY 2.0 billion. Please note that the year-end dividend forecast of JPY 21 (JPY 42 annually) remains unchanged considering that most of the foreign exchange losses are unrealized valuation losses that do not involve cash flow. - 14 -
Page 15
(Million JPY) Segments Revenue Operating profit (loss) Adjusted EBITDA Diabetes Management 99,000 18,200 23,400 Healthcare Solutions 131,300 8,100 18,800 Diagnostics and Life Sciences 128,100 3,000 13,700 Head office and Others 4,800 (9,300) (8,100) Total 363,100 20,000 47,800 Reference: Forecasts of business performance by segment (No changes from the previously announced forecast) *Starting this fiscal year, the Company reviewed its headquarters’ functions and transferred some of the headquarters' roles to each business division. As a result, the breakdown of operating profit and adjusted EBITDA by segment was revised on August 7, 2025. - 15 -
Page 16
(Unit: million yen) As of March 31, 2025 As of December 31, 2025 Assets Current assets Cash and cash equivalents 39,592 44,875 Trade receivables 70,530 69,897 Inventories 51,694 58,971 Other financial assets 4,308 4,152 Other current assets 6,665 11,330 Total current assets 172,790 189,227 Non-current assets Property, plant and equipment 48,374 43,830 Goodwill 206,500 220,325 Intangible assets 80,649 76,370 Investments accounted for using equity method 1,821 983 Other financial assets 13,932 10,424 Deferred tax assets 6,120 9,018 Other non-current assets 2,293 2,485 Total non-current assets 359,691 363,439 Total assets 532,482 552,667 2. Condensed quarterly consolidated financial statement and significant notes (1) Condensed quarterly consolidated statement of financial position - 16 -
Page 17
(Unit: million yen) As of March 31, 2025 As of December 31, 2025 Liabilities and equity Liabilities Current liabilities Trade and other payables 65,665 76,367 Borrowings 34,278 243,363 Income taxes payable 4,207 4,214 Provisions 7,725 8,086 Other financial liabilities 5,812 8,604 Other current liabilities 22,865 20,558 Total current liabilities 140,555 361,194 Non-current liabilities Trade and other payables 597 626 Borrowings 220,982 3,090 Retirement benefit liability 5,544 5,580 Provisions 4,575 4,729 Other financial liabilities 8,358 7,077 Deferred tax liabilities 9,291 10,271 Other non-current liabilities 1,405 1,486 Total non-current liabilities 250,755 32,862 Total liabilities 391,310 394,056 Equity Share capital 48,623 48,781 Capital surplus 42,039 42,460 Retained earnings 2,991 (817) Treasury shares (568) (568) Other components of equity 48,553 69,431 Equity attributable to owners of parent 141,639 159,287 Non-controlling interests (468) (677) Total equity 141,171 158,610 Total liabilities and equity 532,482 552,667 - 17 -
Page 18
(Unit: million yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Revenue 266,910 269,251 Cost of sales 141,765 145,644 Gross profit 125,145 123,606 Selling, general and administrative expenses 108,251 107,652 Other income 672 1,585 Other expenses 262 500 Share of profit (loss) of investments accounted for using equity method (274) 69 Operating profit (loss) 17,028 17,108 Finance income 306 230 Finance costs 4,844 14,835 Profit (loss) before taxes 12,491 2,503 Income tax expense 4,910 1,969 Profit (loss) 7,581 534 Profit (loss) attributable to Owners of parent 7,639 695 Non-controlling interests (58) (161) Earnings (loss) per share Basic earnings (loss) per share (Unit: JPY) 60.58 5.50 Diluted earnings (loss) per share (Unit: JPY) 60.33 5.47 (2) Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated statement of comprehensive income (Condensed quarterly consolidated statement of profit or loss) - 18 -
Page 19
(Unit: million yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Profit (loss) 7,581 534 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans (531) 752 Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income 23 (3,785) Items that may be reclassified to profit or loss Effective portion of cash flow hedges (12) 17 Exchange differences on translation of foreign operations 2,772 25,029 Share of other comprehensive income of investments accounted for using equity method 12 (431) Other comprehensive income, net of taxes 2,264 21,582 Comprehensive income 9,845 22,116 Comprehensive income attributable to Owners of parent 9,914 22,325 Non-controlling interests (68) (208) Comprehensive income 9,845 22,116 (Condensed quarterly consolidated statement of comprehensive income) - 19 -
Page 20
(Unit: million yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Remeasurement s of defined benefit plans Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income Effective portion of cash flow hedges As of April 1, 2024 48,423 41,797 (2,773) (568) － (1,110) (3) Comprehensive income Profit (loss) － － 7,639 － － － － Other comprehensive income － － － － (531) 23 (12) Total comprehensive income － － 7,639 － (531) 23 (12) Issuance of new shares 128 (91) － － － － － Purchase of treasury shares － － － － － － － Dividends to owners of parent － － (4,917) － － － － Forfeiture of share acquisition rights and Restricted Stock Unit － (180) 178 － － － － Share-based payment transactions － 348 － － － － － Transfer from other components of equity to retained earnings － － (319) － 531 (212) － Transactions with owners 128 76 (5,058) － 531 (212) － As of December 31, 2024 48,551 41,874 (192) (568) － (1,299) (16) (Unit: million yen) Equity attributable to owners of parent Non-controlling interests Total Other components of equity Total Exchange differences on translation of foreign operations Share of other comprehensive income of investments accounted for using equity method Total As of April 1, 2024 53,380 369 52,635 139,515 (351) 139,163 Comprehensive income Profit (loss) － － － 7,639 (58) 7,581 Other comprehensive income 2,783 12 2,275 2,275 (10) 2,264 Total comprehensive income 2,783 12 2,275 9,914 (68) 9,845 Issuance of new shares － － － 36 － 36 Purchase of treasury shares － － － － － － Dividends to owners of parent － － － (4,917) － (4,917) Forfeiture of share acquisition rights and Restricted Stock Unit － － － (2) － (2) Share-based payment transactions － － － 348 － 348 Transfer from other components of equity to retained earnings － － 319 － － － Transactions with owners － － 319 (4,534) － (4,534) As of December 31, 2024 56,163 381 55,229 144,894 (420) 144,474 (3) Condensed quarterly consolidated statement of changes in equity - 20 -
Page 21
(Unit: million yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Remeasurement s of defined benefit plans Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income Effective portion of cash flow hedges As of April 1, 2025 48,623 42,039 2,991 (568) － (233) (17) Comprehensive income Profit (loss) － － 695 － － － － Other comprehensive income － － － － 752 (3,785) 17 Total comprehensive income － － 695 － 752 (3,785) 17 Issuance of new shares 158 173 － － － － － Purchase of treasury shares － － － (0) － － － Dividends to owners of parent － － (5,306) － － － － Forfeiture of share acquisition rights and Restricted Stock Unit － (66) 51 － － － － Share-based payment transactions － 312 － － － － － Transfer from other components of equity to retained earnings － － 752 － (752) 0 － Transactions with owners 158 420 (4,503) (0) (752) 0 － As of December 31, 2025 48,781 42,460 (817) (568) － (4,018) (0) (Unit: million yen) Equity attributable to owners of parent Non-controlling interests Total Other components of equity Total Exchange differences on translation of foreign operations Share of other comprehensive income of investments accounted for using equity method Total As of April 1, 2025 48,447 357 48,553 141,639 (468) 141,171 Comprehensive income Profit (loss) － － － 695 (161) 534 Other comprehensive income 25,076 (431) 21,629 21,629 (47) 21,582 Total comprehensive income 25,076 (431) 21,629 22,325 (208) 22,116 Issuance of new shares － － － 331 － 331 Purchase of treasury shares － － － (0) － (0) Dividends to owners of parent － － － (5,306) － (5,306) Forfeiture of share acquisition rights and Restricted Stock Unit － － － (15) － (15) Share-based payment transactions － － － 312 － 312 Transfer from other components of equity to retained earnings － － (752) － － － Transactions with owners － － (752) (4,677) － (4,677) As of December 31, 2025 73,524 (74) 69,431 159,287 (677) 158,610 - 21 -
Page 22
(Unit: million yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Cash flows from operating activities Profit (loss) before taxes 12,491 2,503 Depreciation and amortization 21,338 20,280 Interest expenses 4,594 4,215 Decrease (increase) in trade receivables 5,115 4,195 Decrease (increase) in inventories (5,412) (3,958) Increase (decrease) in trade payables 292 7,433 Other (4,912) 2,519 Subtotal 33,507 37,189 Interest and dividends received 307 183 Interest paid (5,027) (3,885) Income taxes paid (3,297) (6,326) Income taxes refund 2,188 66 Net cash provided by operating activities 27,677 27,227 Cash flows from investing activities Purchase of property, plant and equipment, and intangible assets (8,325) (6,175) Proceeds from sales of property, plant and equipment, and intangible assets 547 355 Proceeds from sale of investments accounted for using equity method 307 － Other 1,253 27 Net cash used in investing activities (6,217) (5,792) Cash flows from financing activities Net increase (decrease) in short-term borrowings (720) 402 Proceeds from long-term borrowings 228 4,228 Repayments of long-term borrowings (20,204) (21,455) Repayments of lease liabilities (5,268) (4,416) Proceeds from issuance of shares 37 0 Dividends paid to owners of parent (4,732) (5,131) Other (2) 3,817 Net cash used in financing activities (30,662) (22,555) Effect of exchange rate changes on cash and cash equivalents (1,317) 6,403 Net increase (decrease) in cash and cash equivalents (10,520) 5,282 Beginning balance of cash and cash equivalents 47,044 39,592 Ending balance of cash and cash equivalents 36,523 44,875 (4) Condensed quarterly consolidated statement of cash flows - 22 -
Page 23
(5) Notes to condensed quarterly consolidated financial statements Notes for going concern Not applicable Reportable segment Major business contents Diabetes Management Development, manufacturing, and sales of blood glucose monitoring (BGM) systems, and sales of continuous glucose monitoring (CGM) systems Healthcare Solutions Development of clinical testing business, development and sales of medical IT products such as medical-receipt computers and electronic medical record systems, and development of drug discovery support business Diagnostics & Life Sciences Development, manufacturing, and sales of pathological diagnosis equipment, research and medical support equipment, diagnostic reagents and instruments, as well as motorized drug injection devices Segment information 1) Reportable segments Major business contents in each reportable segment are as follows: - 23 -
Page 24
(Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Subtotal Others, adjustments and eliminations Consolidated basis Revenue Sale from external customers 74,214 94,202 96,060 264,477 2,433 266,910 Intersegment sales － － － － － － Total 74,214 94,202 96,060 264,477 2,433 266,910 Operating profit (loss) 10,544 5,959 6,722 23,226 (6,197) 17,028 Finance income 306 Finance costs 4,844 Profit (loss) before taxes 12,491 Other items Depreciation and Amortization 4,951 7,445 8,458 20,854 484 21,338 Impairment losses (reversal of impairment losses) (80) － － (80) (36) (117) 2) Segment revenues and operating results Nine months ended December 31, 2024 (Notes) “Others” of “Others, adjustments and eliminations” is an operating segment not included in reportable segments and “adjustments and eliminations” mainly includes eliminations of intersegment transactions and corporate expenses not allocated to each reportable segment. - 24 -
Page 25
(Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Subtotal Others, adjustments and eliminations Consolidated basis Revenue Sale from external customers 77,077 95,218 92,392 264,689 4,562 269,251 Intersegment sales － － － － － － Total 77,077 95,218 92,392 264,689 4,562 269,251 Operating profit (loss) 14,737 4,929 2,337 22,003 (4,895) 17,108 Finance income 230 Finance costs 14,835 Profit (loss) before taxes 2,503 Other items Depreciation and Amortization 3,524 7,802 8,506 19,833 447 20,280 Impairment losses (reversal of impairment losses) － － 1 1 － 1 Nine months ended December 31, 2025 (Notes) “Others” of “Others, adjustments and eliminations” is an operating segment not included in reportable segments and “adjustments and eliminations” mainly includes eliminations of intersegment transactions and corporate expenses not allocated to each reportable segment. - 25 -
Page 26
(Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Other Total By region Japan 2,990 93,707 16,318 171 113,187 Europe 39,965 164 23,164 － 63,294 North America 16,682 69 42,738 － 59,491 Other 14,575 260 13,839 2,262 30,937 Total 74,214 94,202 96,060 2,433 266,910 (Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Other Total By region Japan 2,550 94,801 15,843 138 113,333 Europe 42,470 179 24,994 － 67,644 North America 18,230 38 38,252 － 56,521 Other 13,825 199 13,303 4,423 31,751 Total 77,077 95,218 92,392 4,562 269,251 Revenue Disaggregation of revenue Revenue disaggregation by reportable segments and major regions is as follows. Nine months ended December 31, 2024 Nine months ended December 31, 2025 - 26 -