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2Q FY 06/2025 Financial Results Report (Securities code: 2689) OLBA HEALTHCARE HOLDINGS, INC. (formerly KAWANISHI HOLDINGS INC.) This presentation includes machine translation. Please consider that some content may not be perfectly accurate or contextually appropriate.
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Contents ◆ Corporate Philosophy ◆ Summary of FY2025 and 2Q ◆ FY2025 FY June 2025 Performance Forecasts and Basic Policy for Distribution ◆ Outline of the Medium-Term Management Plan ◆ Reference Materials
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Corporate Philosophy
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©OLBA HEALTHCARE HOLDINGS, Inc. Corporate Philosophy and Significance of Presence (purpose) Through our business, Contributing to the development of medicine, medical care, and nursing care,Contribute to the health and longevity of the national 4
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FY June 2025 Overview of Results for 2nd quarter FY6/25
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©OLBA HEALTHCARE HOLDINGS, Inc. ■Global inflation and depreciation of the yen ・Prices of medical devices, many of which are overseas products, continue to trend upward ・Implemented measures to expand sales activities and improve purchasing ・Negotiations to pass on the increase to sales prices are conducted while considering proposals for alternative products. Secure a certain level of profit ■Establishment of Kansai Branch in mainstay medical equipment business ・Acquired customers in the Kansai area and promoted Kobe Sales Office to Kansai Branch ■Strong sales of consumables ・Establishment of a cooperative system with Olympus Marketing ⇒ Even after the start of operations in April 2023, total sales of digestive endoscopy-related products rose 9.1% YoY ・Acquisition of new facilities in Kansai area ⇒ Total sales of cardiovascular consumables increased 8.7% year on year 6 Performance Topics [2Q]
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©OLBA HEALTHCARE HOLDINGS, Inc. 7 Consolidated Financial Results for the Second Quarter of Fiscal 2025 [2Q] Millions of yen Comparison with budget YoY Net sales 60,627 △0.2% +5.5% Gross profit 6,819 △1.5% +6.0% Gross profit margin 11.25% SG&A expenses 6,011 △1.8% +5.8% Operating income 808 +1.0% +8.2% Ordinary income 824 +3.9% +10.5% Profit attributable to owners of parent 648 +27.2% +33.3% Interim net income per share 109.44 yen Record high net sales, gross profit, and interim net income attributable to owners of the parent [Regarding the difference in interim net income attributable to owners of the parent] Along with the plan to integrate the headquarters of subsidiaries, Impact of tax effect accounting for impairment losses on real estate in prior years
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©OLBA HEALTHCARE HOLDINGS, Inc. 2.8 billion yen (50 million yen) 1.3 billion yen (100 million yen) 57.2 billion yen (710 million yen) Business Segment Results for the Second Quarter of Fiscal 2025 Nursing Care Products Business Total support for nursing care products SPD business Medical products distribution specialist 93.2% 4.6% 2.2% Sales Mix Medical equipment SPD Nursing care products Medical equipment business Total partners in the medical field [FY June 2025 2Q] Net Sales (Operating Income) Total 60.6 billion yen ※Sales include inter-segment sales 8
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©OLBA HEALTHCARE HOLDINGS, Inc. 9 Medical equipment business Millions of yen Actual Comparison with budget YoY change Net sales 57,294 +0.1% +5.5% Operating income 715 △0.1% +6.9% Medical equipment [93.2%] Net sales Compositi on ratio Millions of yen Sales Results YoY Kawanishi Corporation 38,625 +6.2% Sansei Medical 13,290 +0.7% Nikko Medical Instruments 5,969 +12.0% Total partners in the medical field ※2 ※1 ※1 Net sales (including changes from budget and changes from the previous fiscal year) include intersegment sales ※2 Sales results of individual companies include the amount of transactions between group companies
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©OLBA HEALTHCARE HOLDINGS, Inc. 10 Medical Equipment Business Consumables Product Classification Net sales YoY Points of sub-segments Surgical consumables 25,970 +5.7% Internal medicine +15.6%, digestive endoscopes +9.1%, surgical +6.6% Orthopedic consumables 14,126 +10.3% Artificial joint +12.1%, trauma, sports, and arthroscopes +9.7% Spine △ 10.9% Cardiovascular consumables 11,938 +8.7% Catheterization ABL*+14.6%, cardiac ischemic treatment + 13.3%. Cardiac and Vascular Surgery △ 0.7% Sales ¥52 billion up 7.6% year on year Millions of yen * ABL: Therapy in which a portion of the heart is catheterized for a tachyarrhythmia, such as auricular fibrillation, to be ablated or frozen Ultrasound scalpel Johnson & Johnson K.K From our website (https://www.jnj.co.jp/) Medtronic website From (http://www.medtronic.com/) Pacemaker Artificial knee joint Zimmer Biomet website Than https://www.zimmerbiomet.com/ja) ※Net sales (including changes from the previous fiscal year) are calculated based on management accounting before the adoption of the new revenue recognition standard.
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©OLBA HEALTHCARE HOLDINGS, Inc. 11 Medical Equipment Business Equipment Points of Equipment Sales ◆Increase in demand due to subsidies such as corona paused ◆Small number of large-scale projects, strengthen discovery of small-scale equipment projects ◆Sales of automated payment machines for clinics were strong. Sales ¥6.5 billion down 5.8% year on year Pulmotor Philips website Than https://www.philips.co.jp/healthcare) Fukuda Electronic Website From (https://www.fukuda.co.jp/) With analysis function Vital signs monitor From kawanishibarkmed HP (https://kawanishi-bm.co.jp/) Automatic reset machine
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©OLBA HEALTHCARE HOLDINGS, Inc. 12 SPD business Millions of yen Actual Comparison with budget YoY Net sales 2,842 +1.7% +9.8% Operating income 55 +2.6% +5.3% ※ Total number of subscribers 74 direct FC 2 Goods management Information management Purchasing management ※Net sales (including changes from budget and changes from the previous fiscal year) include intersegment sales HOSNET・Japan, Inc. ◆ Review of commodity management service fees ◆ Passing on increases in purchase prices to higher prices and making improvements in purchases ◆ Increase in SG&A expenses due to the impact of salary base pay increases, etc. Medical products distribution specialist
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©OLBA HEALTHCARE HOLDINGS, Inc. Millions of yen Actual Comparison with budget YoY Net sales 1,369 +0.1% +4.0% Operating income 105 △3.3% +3.4% 13 Nursing Care Products Business ※ ◆ Continued demand for home medical care and in-home nursing care ◆ Mainstay nursing care product rentals up 4.4% YoY ◆ Sales of merchandise and housing renovations associated with rentals are also steady Rental Sale Renovation Life Care Co., Ltd. Total support for nursing care products ※Net sales (including changes from budget and changes from the previous fiscal year) include intersegment sales
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From the FY2025 results forecast Basic policy on dividends
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©OLBA HEALTHCARE HOLDINGS, Inc. 15 Consolidated Financial Forecasts for the Fiscal Year Ending June 2025 (Millions of yen) Forecast 2024/6 Result Change Net sales 123,726 118,564 +4.4% Gross profit 14,446 13,600 +6.2% Gross profit margin 11.68% 11.47% +0.21 SG&A expenses 12,176 11,374 +7.1% Operating income 2,270 2,226 +1.9% Ordinary income 2,253 2,244 +0.4% Profit attributable to owners of parent 1,465 1,500 △2.4% Net income per share ¥247.65 Sales, gross profit, operating profit, and recurring profit are expected to be record highs
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©OLBA HEALTHCARE HOLDINGS, Inc. 16 Factors behind Changes in Operating Income for the Fiscal Year Ended June 2025 (Millions of yen) 2,226 639 42 64 -509 70 -63 -58 -141 2,270 FY06/24 消耗品 利益額 設備備品 利益額 販管費 粗利 販管費 粗利 販管費 全社 販管費 FY06/25 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 Medical equipment business SPD business Nursing Care Products Business [Major Factors of Changes] ・Expected increase in sales in the Kansai area ・SG&A expenses increased due to continued investment in human resources and systems. Profit from consumables Profit from Facilities and equipment SG&A gross profit SG&A gross profit SG&A Company-wide SG&A
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©OLBA HEALTHCARE HOLDINGS, Inc. 17 [Consolidated net sales] Record forecast 49,861 102,072 53,030 107,959 53,718 110,472 57,466 118,564 60,627 123,726 0 40,000 80,000 120,000 160,000 Half-year Full year Half-year Full year Half-year Full year Half-year Full year Half-year Full year FY06/21 FY06/22 FY06/23 FY06/24 FY06/25 FY June 2025 Forecast of ¥123.7 billion (+4.4% YoY) (Result) (Forecast) Fifth consecutive year of sales growth and record highs (Millions of yen)
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©OLBA HEALTHCARE HOLDINGS, Inc. 18 [Consolidated Operating Profit] Record forecast Forecast for FY6/2025: ¥2.27 billion (Up 1.9% year on year) Fifth consecutive year of profit growth and record highs (Millions of yen) 620 1,540 786 2,073 854 2,151 746 2,226 808 2,270 0 500 1,000 1,500 2,000 2,500 Half-year Full year Half-year Full year Half-year Full year Half-year Full year Half-year Full year FY06/21 FY06/22 FY06/23 FY06/24 FY06/25(Result) (Forecast)
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©OLBA HEALTHCARE HOLDINGS, Inc. Basic policy on dividends ① Aiming to increase or maintain dividends ② We will endeavor to retain internal reserves for growth investments. ※Dividend yield is calculated based on the share price at the end of each fiscal year. 30 30 30 40 40 45 50 60 70 80 4.0% 4.4% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% FY6/15 FY6/16 FY6/17 FY6/18 FY6/19 FY6/20 FY6/21 FY6/22 FY6/23 FY6/24 [Dividends for the most recent 10 years] Dividend per share Dividend on equity (DOE) ratio Dividend yield FY6/25 forecast: JPY80 DOE Dividend yield 19
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©OLBA HEALTHCARE HOLDINGS, Inc. 20 Financial indicators we emphasize Aiming to improve PBR by improving profitability, promoting new businesses, etc. ✓ ROE = Net income Shareholders' equity × 100% PBR = PER x ROE = × Market capitalization Net income Net income Shareholders' equity Profitability improvement Fostering expectations for growth ・Upstream strategy ・New businesses ・Overseas expansion Dialogue with the market Profitability improvement ✓ Net sales ✓ Operating income (Return on Equity)
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©OLBA HEALTHCARE HOLDINGS, Inc. 21 Analysis of Capital Cost and Capital Profitability 4.7% 12.8% 17.8% 14.6% 13.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% FY6/20 FY6/21 FY6/22 FY6/23 FY6/24 ROE・Cost of equity ROE Import and sales business In the provision for doubtful accounts Temporary factors ・Equity spread (%) (Cost of ROE-equity) ⇒ Approx. 6% to 7% ・For the cost of capital on an ongoing basis Achieve higher profitability on capital ・Five-year historical mean of ROE ⇒12.7% ・In line with its medium-term management plan Continue to invest for growth and development Cost of equity capital: Around 6% ※Reference value for calculating cost of equity ・Risk-free rate: 10-year JGB yields, β value: about 0.8, market risk premium: about 7%
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©OLBA HEALTHCARE HOLDINGS, Inc. 22 Initiatives to Improve PBR PBR (1.05 times) ROE (13.8%) PER (8.01 times) Net profit to sales (1.27%) Asset turnover (2.8 turns) Financial Leverage (3.80 times) Cost of capital (around 6%) Expected growth rate Improve productivity by streamlining through DX, etc. Promoting new high-value-added businesses Increase overseas business ratio Initiatives for new businesses Increase our recognition through IR activities, etc. ※Figures in parentheses are as of June 30, 2024 or the previous fiscal year. Figures for the TSE are as of June 2024. Equity Spread 6-7% In line with its medium-term management plan Continue to invest for growth and development Proper debt collection and inventory management Enhancement of shareholders' equity in line with business expansion Proper debt management TSE Standard Market Wholesale weighted average: 0.9 times
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Outline of the Medium-Term Management Plan
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©OLBA HEALTHCARE HOLDINGS, Inc. 29,860 30,290 31,120 32,180 32,830 33,550 34,570 35,240 36,270 37,240 37,940 1.6 1.4 2.7 3.4 2.0 2.2 3.0 1.9 2.9 2.7 1.9 -24.0 -18.0 -12.0 -6.0 0.0 6.0 20,000 30,000 40,000 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Fiscal 2020 FY2021 FY2022 FY2023 (Estimate) FY2024 (Forecast) (Billions of yen) Terminal market size Growth rate Domestic market size of medical devices (%) * Processed from the 2023 edition of the Medical Equipment and Supply Yearbook and the 2024 edition of the Medical Equipment and Supply Yearbook of R&D Co., Ltd. ・Recovering from the Impact of the New Corona and Stable Market Expansion ・Market expansion due to increase in number of surgeries and introduction of new products Stable market growth despite policies to curb medical costs In fiscal 2024, Forecast of ¥3.794 trillion 24
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©OLBA HEALTHCARE HOLDINGS, Inc. Medium-term management plan (FY June 2027: ¥135 billion in sales, ¥2.7 billion in operating profit) Productivity improvement Investing in the future VISION 2030 IT increase of skill OLBA-DX CRM/SFA/BI construction Enhancement of electronic catalogs IT Acquisition of passport Sustainability Logistics ・Innovation Promotion of external collaboration To foster new businessses Promote business alliances ASEAN business development Strengthen and streamline operations Sophistication of sales activities Logistics warehouse construction Net sales ¥135.0 billion Operating income 2.7 billion yen FY June 2027 Targets Sharing Employee Charter Develop new regions and customers Key Points of the FY2025/6 - 2027/6 Medium - Term Management Plan Strengthen purchasing bargaining power in the medical equipment business Restructuring the orthopedic process Streamlining and streamlining back-office operations Startup collaboration Medical/industrial collaboration Expansion of the Burkmed business Logistics collaboration with suppliers Hub functions for intra-regional distribution More than 30 new products and services20% of operating income from overseasTop domestic trading company for medical devices Li-Flo utilization and deployment Merchandise master improvement Groupware update Renewal of personnel system No-code tool expansion Utilization of various AI e-learning course DX Human Resource Development Investment in human resource development and human resources Work Style Reform/Health Management Enhancing Engagement Promotion of diversity Minimize environmental impact Thorough compliance 25
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©OLBA HEALTHCARE HOLDINGS, Inc. Medium-Term Management Plan: Key Points of Initiatives On subsequent slides 『OLBA-DX』 "Logistics innovation" "New Business Development" Explanation focused on "Sustainability" ➢ OLBA-DX : Utilization sales quality by streamlining operations and utilizing ICT tools Working to improve employee IT skills ➢ Improve productivity: Strengthen current operations and innovate logistics (construct new logistics center) Aiming to realize stable supply and maximize value provided to customers ➢ Invest in the future : Realize development of new businesses and sustainability Promoting human capital investment and initiatives that take the global environment into account 26
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©OLBA HEALTHCARE HOLDINGS, Inc. Reforming by OLBA-DX DX Promotion Office ➢ Creating new value ・Developing and operating Web order apps ➢ Sales support and operational efficiency ・Sales Assistance through Unique Electronic Catalog ・Business card management system in operation ・Expense settlement system in operation ・Development and operation of integrated logistics system in progress ・Expanded use of RPA and no-code tools ➢ Strong security measures ・EDR (Endpoint Security) in Operation ・Initiatives for information security Measures already in operation and in progress Initiatives to be implemented in the future ➢ Promote further sales support and operational efficiency ・CRM, SFA construction ・Renovation of the sales management system ・Renovation of groupware ・Expand use of generated AI OLBA-DX 27
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©OLBA HEALTHCARE HOLDINGS, Inc. A study session was held in Okayama City in November 2024. Group work and other activities conducted by employees selected from Group companies 28 Development of OLBA-DX DX human resources OLBA-DX Study Group on Utilization of No-Code Tools Other company-wide initiatives Conducted DX literacy training for all employees by e-Learning and assessed comprehensiveness We also encourage employees to take IT passport exams. Study sessions on utilization of generated AI, etc. To be implemented as appropriate in the future
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©OLBA HEALTHCARE HOLDINGS, Inc. Logistics innovation ● Shin-Okayama Distribution Center Construction Started operation in September 2022 sequentially from the Kawanishi base of the operating companies ⇒ Expand of the introduction to the entire group Effects at Introduction Sites ・Improving the efficiency of product pick and delivery slip output and reducing inventory time through barcode reading and system linkage, etc. Reinforcement in inventory control To reinforce quality management Streamlining of lending business ● Operation of Li-Flo, an integrated logistics system Decided to construct a new logistics center for the medical equipment business, scheduled to begin operations in July 2027 Purpose of construction ・Streamlining operations, BCP measures, and building new logistics networks ・Hub base for the supply of medical equipment in the Chugoku-Shikoku region ⇒ Based on the philosophy of "do not stop medical care," we will be responsible for the stable supply of medical devices as a base that supports regional medical care. ※For details, please refer to "Notice Regarding Lease of Fixed Assets by Lease of Consolidated Subsidiaries" Logistics warehouse construction 29
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©OLBA HEALTHCARE HOLDINGS, Inc. ●Introduction in the July-December quarter of 2024 : 165 units (YoY +65 units) ●Cumulative number of vehicles introduced : 664 units (As of the end of December 2024) Temasac series of automated settlement machines for clinics Following Tokyo, Nagoya, Osaka, Okayama, and Fukuoka, Opened sales base in Hokkaido in July 2024 Expansion of the Burkmed business To foster new businessses New Businesses ① Strong sales of Temasac 2 22 93 156 226 165 2 24 117 273 499 664 0 100 200 300 400 500 600 700 FY20.6 FY21.6 FY22.6 FY23.6 FY24.6 FY25.6 Introduction results Number of vehicles introduced in each fiscal year Cumulative number of installed boilers ※As of December 2024 30
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©OLBA HEALTHCARE HOLDINGS, Inc. Olstech Corp. Started sales of OLSTECH, a low-thermal decomposition-type up-cycle unit ・The development concept produces no garbage ・In November 2024 on a remote island in Taketomi- cho, Okinawa Started operation trials to resolve waste issues ※For more information, please refer to "Notice of Establishment of Subsidiaries" and "Notice of Sales of Natural Decomposition Promotion-Type Up-Cycle Unit OLSTECH Orthtech " To foster new businessses Minimize environmental impact OLSTECH| Three characteristics 1) Significant reductions in CO2 and dioxin emissions 2) Organic garbage reduced in size to 1/300 volume, secondary use 3) Space saving & low running cost (fossil fuel not used) New Businesses ② Established Orcido Co., Ltd. 「」 (January 6, 2025) 31
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©OLBA HEALTHCARE HOLDINGS, Inc. [Thoughts on development] ・With inspiration and newborn records immediately after delivery Deliver to families and relatives ・To the promotion of attachment to newborns Aim to contribute Started operation at Ehime University Hospital in December 2024 Babies Newborn Live Distribution & Memorial Movie Creation Service "Babyeets®" ※For more information, see the Newborn Live Distribution & Memorial Movie Creation Service Babyeets Launch Notice. Babyeets | Three characteristics 01 Easy access to read-only cards 02 Real-time video viewing from remote areas 03 Provision of memorial video after hospitalization To foster new businesssesNew businesses ③ "Babyeets®" launched Left: Memorial movie sample Right: Interview with Director Sugiyama, Ehime University 32 Babies
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©OLBA HEALTHCARE HOLDINGS, Inc. Taiolba Healthcare Business ・Economic and geographic hub-function of ASEAN region ・Expect rapid aging in the future ・Thailand government focuses on fostering the medical industry ➢ Sales of fully automated tablet packaging machines Concluded an official sales agent agreement with Takazono Co., Ltd. in Thailand Preparing for installation at hospitals ➢ Sales of rehabilitation equipment In cooperation with Morito Co., Ltd. and other Japanese manufacturers, preparations for sales are underway [Commemorative ceremony for the establishment of Bangkok on January 26, 2023] Takazono https://www.takazono.co.jp/index.html Co., Ltd. Morito https://www.moritoh.co.jp/ Co., Ltd. Automatic dispensing table Fully automated tablet packaging machine [Authorized sales agent in Thailand for Takazono Products Co., Ltd] Reasons for expanding into Thailand Main businesses of Tyolba Healthcare To foster new businessses ASEAN business development 33
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©OLBA HEALTHCARE HOLDINGS, Inc. Started sales of OLSTECH, a low-thermal decomposition-type up-cycle unit Environment (environmental) Ensure management transparency, efficiency, and soundness. Enhancement of Group Value Governance (Governance) Social (Social) [Human capital investment and work style reform] Increase of male employees taking childcare leave by 4-5% on regular pay raise + bears Efforts to promote women's careers and improve employee engagement are underway [Health Management] Health and Productivity Management Strategy Map under development Sep. 2024 Introduced long-term revenue support system (GLTD system) [For local communities] Provision of safe and high-quality medical and nursing care equipment and services ※For more information, please refer to the "Notice of Updating the Basic Approach to ESG " announced on January 31, 2024. ESG Initiatives Sustainability 34
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©OLBA HEALTHCARE HOLDINGS, Inc. Human Resources Development as a Source of Growth ◼ Systematic human resource development and acquisition of expertise OLBA Academy, a 30-year-old internal training system We provide opportunities for employees to learn according to their stage of development. Enhance employee engagement Building expertise and management capabilities Gradual expansion of e-Learning courses 35 Sustainability
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©OLBA HEALTHCARE HOLDINGS, Inc. ➢ No.1 of shares in Chugoku-Shikoku region (based on trust from customers and suppliers) ⇒ New investments can be implemented by securing stable profits ➢ To invest in human resource development and DX, which are the source of our growth ⇒ Accurately grasping customer needs through approximately one year of new employee training, etc. ⇒ Supporting sales activities through the utilization of ICT tools ➢ Low profit margin (industry characteristics of wholesalers) ⇒ High-value-added businesses, such as products developed in-house and overseas expansion, including the Kingdom of Thailand ➢ Low share in major metropolitan areas (difficult to enter due to high barriers to entry) ⇒ Nationwide sales through new businesses. About 40% of automated checkout machines are sold in the Kanto region. Sales of OLSTECH and Babyeets also started this year. Our strengths and utilization and weaknesses and countermeasures Strengths and Utilization Weaknesses and countermeasures ・Electronic catalogue ・Integrated logistics system ・Expenditure adjustment system ・Business card management system ・RPA utilization, etc. 36
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©OLBA HEALTHCARE HOLDINGS, Inc. SPD business HOSNET・Japan, Inc. ・Voluntary investment type at small and medium hospitals ・Simple and accurate inventory management ・Inexpensive billing and remote maintenance ● Wide-area sales of the Medilia inventory management system ・Develop customers in the Chugoku-Shikoku area ・Proposals for hospital management support, such as purchasing price reductions and insurance claim leakage checks With customer satisfaction Improve productivity ● Acquisition of new customers and improvement of revenue YouTube Video: YouTube video https://www.youtube.com/watch?v=iYxAzGT6UtI 37
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©OLBA HEALTHCARE HOLDINGS, Inc. Nursing Care Products Business Life Care Co., Ltd. ・Strengthen customer service by enhancing follow-up system ・Promote sales activities using ICT ● Increase market share in existing areas ● Strengthen services and sell goods ● In-house construction of residential remodeling for nursing care ・Strengthen transactions with nursing care facilities ・Hearing aids sales and wheelchair repair services ・Cultivating new users ・Providing Safety and Security Services Hearing aids Wheelchair Planning to open additional stores in the Seto Inland Area Nursing bed 38
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Reference Materials
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©OLBA HEALTHCARE HOLDINGS, Inc. Trade name Olbas Healthcare Holding Inc (Former name: Kawanishi Holdings Co., Ltd.) Head Office 1-3, Shimo-Ishii 1-chome, Kita-ku, Okayama Founded in May 1921 Established October 1967. Representative Director and President Yohei Maeshima Capital 607750000 yen Employees 1367 (Consolidated, as of December 31, 2024) Fiscal Year Ended June Corporate Profile Mar. 2020 Listed on the First Section of the TSE Stock Exchange 2022 Apr. Transitioned to standard market OLBA HD Life Care Co., Ltd. HOSNET・Japan, Inc. Kawanishi Corporation Sansei Corporation Thiolba Healthcare Medical equipment Kawanishi Berkmed Corp. Diverse business portfolio encompassing orthopedics, cardiovascular, surgical, ophthalmology, and nursing care Nikko Medical OLSEED 40 SPD Nursing care products
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©OLBA HEALTHCARE HOLDINGS, Inc. May, 1921 Established Kawanishi Kikai Kikai Store in Ounji-cho, Okayama City (currently Chuo-cho, Kita-ku, Okayama City). Sep. 1927 Associated company Kawanishi Machinery Shop reorganized and established. Jun 1950 Reorganized and established Kawanishi Kikiten Co., Ltd. 1967 Oct Reorganized and established Kawanishi Medical Equipment Co., Ltd. 1985 Oct Established Life Care Co., Ltd. Jul 1996 Established Hosnet Japan Co., Ltd. 1999 Jan. Merged with three companies, Kagawa Seiki Co., Ltd. and Shikoku Medical Abilities Co., Ltd. At the same time, the company changed its name to Kawanishi Co., Ltd. 2000 Dec Listed on the Second Section of the Tokyo Stock Exchange. 2004 Jan. The business division was established as Kawanisi Co., Ltd. through a new split company. At the same time, the company name was changed to KAWANISHI Holdings Co., Ltd. Jun 2005 Acquired 100% of the shares of Nikko Medical Instruments Co., Ltd. 2012 Jan. Acquired 100% of the stock of Sansey Medical Machinery Co., Ltd. 2014 Aug. Head office moved to 1-1-3, Shimo-Ishii, Kita-ku, Okayama, in line with the expansion of the Group's business scope. 2016 Jan. Established Exora Medical Co., Ltd. Jul 2019 Established Kawanishibarkmed Co., Ltd. 2020 Mar Listed on the Second Section of the Tokyo Stock Exchange to the First Section of the Tokyo Stock Exchange. 2021 Jan. To commemorate its 100th anniversary, the company changed its name to Orba Healthcare Holdings, Inc. 2022 Apr Transitioned to a standard market in accordance with a review of market categories on the Tokyo Stock Exchange. Jun 2022 Acquired 100% of the shares of Kawanishibarkmed Co., Ltd. 2023 Jan. Established Thailand Healthcare Co., Ltd. (THAI OLBA Healthcare Co., Ltd.) in the Kingdom of Thailand. 2024 Jan. Orsid Co., Ltd. was established. History 41
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©OLBA HEALTHCARE HOLDINGS, Inc. Business Structure ○ Contribute to the development of medicine, medical care, and nursing care through business and contribute to the health and longevity of the national ○ Promptly and appropriately provide patients and medical providers with the benefits of innovative new features and technologies ○ In good faith and continuously to our stakeholders (customers, business partners, employees, local communities, and shareholders) Providing Value and Pursuing Sustainable Management ○ Actively interact inside and outside the industry, foster creativity, and explore frontiers from a global perspective Organizational Structure ○ Respect for human resource development and place emphasis on "management (through human resources)" ○ Emphasizing Diversity and Recognizing Diverse Opinions, Values, and Working Styles ○ Try to compete and trade fairly at any time ○ Results from competition are reinvested to create new value ○ Develop an environment where members can be healthy both mentally and physically and have a willingness to contribute How Members Are ○ Have a willingness to grow voluntarily and independently ○ Continue to learn modestly without being comfortable with past results ○ Not good at free riding to benefit without their own contributions or efforts ○ Respect business partners inside and outside the company and engage in business with high ethical standards and pride OLBA Employee Charter 42
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©OLBA HEALTHCARE HOLDINGS, Inc. Assets Amount Change Cash and deposits 2,643 △87 Trade receivables 27,824 1,711 Commodities 7,165 1,222 Other 625 △175 Total current assets 38,257 2,671 Tangible fixed assets 5,127 767 Intangible fixed assets 625 △20 Investments and other assets 2,766 120 Total fixed assets 8,518 867 Total assets 46,776 3,538 Liabilities and Net Assets Amount Change Trade payables 28,416 2,216 Short-term borrowings 2,700 2,100 Other 1,805 △1,110 Total current liabilities 32,921 3,206 Lease obligations (solid) 953 61 Other 1,399 142 Total long-term liabilities 2,352 203 Total liabilities 35,273 3,410 Total net assets 11,502 128 Total liabilities and net assets 46,776 3,538 Millions of yen Consolidated Balance Chart (2Q, 2025) Net assets per share 1,941.42 yen ※Change from previous year-end 43
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©OLBA HEALTHCARE HOLDINGS, Inc. Consolidated Statements of Cash Flows (FY2025 2Q) Millions of yen FY June 2024 2nd quarter FY June 2025 2nd quarter Income before income taxes 745 815 Depreciation and amortization 259 289 Decrease (increase) in notes and accounts receivable- trade (increase in △) △1,629 △1,711 Decrease (increase) in inventories (increase in △) △429 △1,147 Increase (decrease) in notes and accounts payable- trade (decrease in △) 1,474 2,216 Other △565 △1,261 Operating cash flow △145 △799 Payment for acquisition of tangible fixed assets △154 △797 Purchases of intangible assets △87 △83 Loans to subsidiaries and affiliates △100 - Other △33 △8 Investing cash flow △374 △888 44
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©OLBA HEALTHCARE HOLDINGS, Inc. Millions of yen FYE June 2024 2nd quarter FYE June 2025 2nd quarter Net increase (decrease) in short-term borrowings (△) 1,800 2,100 Repayments of long-term debt △55 - Purchase of treasury stock △221 △135 Proceeds from sales of treasury stock 1 139 Dividends paid △435 △488 Other △76 △77 Financial cash flow 1,014 1,539 Net increase (decrease) in cash and cash equivalents (decrease in △) 521 △148 Cash and Cash Equivalents at Beginning of Year 2,359 2,681 Other - 60 Cash & cash equivalents at year-end 2,881 2,593 Consolidated Statements of Cash Flows (FY2025 2Q) 45
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©OLBA HEALTHCARE HOLDINGS, Inc. Item Unit 2020/6 2021/6 2022/6 2023/6 2024/6 Net sales Millions of yen 97,872 102,072 107,959 110,472 118,564 Operating income Millions of yen 927 1,540 2,073 2,151 2,226 Ordinary income Millions of yen 905 1,542 2,119 2,158 2,244 Profit attributable to owners of parent Net income Millions of yen 326 989 1,535 1,414 1,500 Net assets Millions of yen 7,281 8,131 9,093 10,327 11,373 Total assets Millions of yen 33,683 36,562 39,968 40,878 43,237 BPS Yen 1,197.17 1,336.91 1,513.91 1,712.19 1,922.58 EPS Yen 56.76 162.66 252.80 234.90 251.68 Equity ratio % 21.6 22.2 22.8 25.3 26.3 ROE % 4.7 12.8 17.8 14.6 13.8 ROA % 2.7 4.4 5.5 5.3 5.3 PER Times 23.85 10.17 6.63 7.70 8.01 PBR Times 1.13 1.24 1.11 1.06 1.05 Consolidated Financial Data ① 46
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©OLBA HEALTHCARE HOLDINGS, Inc. Item Unit 2020/6 2021/6 2022/6 2023/6 2024/6 Sales CF Millions of yen 862 3,126 2,420 △659 2,084 Investment CF Millions of yen △496 △630 △211 △306 △673 Finance CF Millions of yen 439 △2,262 △1,169 175 △1,089 Cash and cash equivalents Millions of yen 1,877 2,110 3,149 2,359 2,681 Bank loans Millions of yen 2,615 795 275 955 600 Number of employees People 1,222 1,261 1,289 1,317 1,354 Medical equipment People 892 913 938 955 982 Of which, SPD People 171 177 175 177 174 Nursing care People 120 131 135 138 147 Imports and sales People 2 - - - - Of which, headquarters People 37 40 41 47 51 Consolidated Financial Data ② ※Import and sales business is excluded from June 2021. 47
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©OLBA HEALTHCARE HOLDINGS, Inc. (Previous fiscal year) Consolidated results for the fiscal year ended June 2024 Millions of yen Comparison with budget YoY change Net sales 118,564 +0.2% +7.3% Gross profit 13,600 △2.0% +5.0% Gross profit margin 11.47% SG&A expenses 11,374 △2.6% +5.3% Operating income 2,226 +1.2% +3.5% Ordinary income 2,244 +1.6% +4.0% Profit attributable to owners of parent 1,500 +3.3% +6.1% Net income per share ¥251.68 Record highs for net sales, gross profit, operating income, and ordinary income 48
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©OLBA HEALTHCARE HOLDINGS, Inc. (Previous year) Summary of results for the year ended June 2024 Net sales 118.5 billion yen (+7.35% YoY) Operating income 2.22 billion yen (+3.5% YoY) PBR 1.05 times (*As of June 30, 2024) DOE 4.4% (*As of June 30, 2024) ROE 13.8% (5-year average of 12.7%) Dividend yield 4.0% (*As of June 30, 2024) Dividends on Equity ※New highs for net sales ※New highs for net sales 49
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©OLBA HEALTHCARE HOLDINGS, Inc. CSR Initiatives Contributing to Social Rooted in Local Communities Faziano Okayama Club sponsor Okayama Rivets Team sponsor Ohara museum of art Official partner Working together with local residents to create a future conducive to regional development and revitalization Established in 2006 as Okayama Prefecture's first professional soccer club Decided to be promoted to J1 in 2024 Established in 1930 in Kurashiki City, Okayama Prefecture Japan's first private art museum focusing on western art Okayama TEC PLANTER Partner companies With the creation of new businesses based on technologies originating in Okayama Venture development and support Male Table Team established in 2018 Participated in the national T league「」 50
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©OLBA HEALTHCARE HOLDINGS, Inc. Nippon Medical Manufacturing Commons MINC Association "Study Group on the Latest Trends in Overseas Medical Devices" On Medical Globe Sharing and discussing information on the latest overseas medical device information among various industries Doctors, manufacturers, the Ministry of Economy, Trade and Industry, the Ministry of Health, Labour and Welfare, the Patent Office, AMED・PMDA Our MG Editorial Department participates and exchanges views (started in October 2017) 33rd Meeting: National Center for International Medical Research to be held online in March 2025 51
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©OLBA HEALTHCARE HOLDINGS, Inc. Corporate Information/Inquiries [Fiscal year] From July 1 to June 30 of the following year [Ordinary General Meeting of Shareholders] Held annually in September [Stock Exchange Lists] Tokyo Stock Exchange (Standard Market) Securities code: 2689 [Number of shares per unit] 100 shares [Contact] OLBA HEALTHCARE HOLDINGS, INC. Nobuyuji Murata Managing Director, Chief Administrative Officer info@olba.co.jp 52
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©OLBA HEALTHCARE HOLDINGS, Inc. ・Although the datum provided in this document is intended to be used with all possible care, the accuracy and completeness of such information is not guaranteed. ・Opinions and forecasts contained in the data are our forecasts based on information available at the time of preparation of the materials, and we do not guarantee any compensation for the results of using such opinions and forecasts. The information in this document is subject to change without notice. ・This material is intended to provide a better understanding of us and is not necessarily intended as a recommendation to invest. We asked investors to make their own decisions on the final outcome of their investments. 53