Interim report
Page 1
Consolidated Financial Results for the Six Months Ended September 30, 2025 [IFRS] Revenue Operating profit Profit before taxes Profit Profit attributable to owners of parent Comprehensive income Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 173,375 (0.3) 10,378 12.7 941 (87.3) (692) - (559) - 7,236 - September 30, 2024 173,863 4.2 9,212 120.3 7,411 - 4,022 - 4,100 - (9,626) - Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 (4.42) (4.42) September 30, 2024 32.52 32.42 November 12, 2025 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 submit the Semi-Annual Securities Report: November 12, 2025 Scheduled date to commence dividend payments: December 18, 2025 Availability of supplementary briefing material on the Semi-Annual Results: Yes Scheduled date of the Semi-Annual Results Briefing Session: Yes (Figures are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Six Months Ended September 30, 2025 (From April 1, 2025 to September 30, 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: September 30, 2025… 67 million yen September 30, 2024… (162) 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 % September 30, 2025 525,819 146,041 146,658 27.9 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) 8,000 (57.5) 4,500 (56.6) 4,400 (58.0) 34.80 (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) Revision of consolidated earnings forecasts to the latest announcement: Yes - 2 -
Page 3
As of September 30, 2025 126,721,820 Shares As of March 31, 2025 126,410,072 Shares As of September 30, 2025 211,941 Shares As of March 31, 2025 211,941 Shares Six months ended September 30, 2025 126,382,905 Shares Six months ended September 30, 2024 126,096,069 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: Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. 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 condition position (Balance Sheet) 13 (3) Explanation regarding cash flow 13 (4) Explanation regarding future prospects (ex. forecasted consolidated business results) 14 2. Condensed semi-annual consolidated financial statement and significant notes (1) Condensed semi-annual consolidated statement of financial position 16 (2) Condensed semi-annual consolidated statement of profit or loss and condensed semi-annual consolidated statement of comprehensive income 18 (3) Condensed semi-annual consolidated statement of changes in equity 20 (4) Condensed semi-annual consolidated statement of cash flows 22 (5) Notes to condensed semi-annual consolidated financial statements 23 Notes for going concern 23 Segment information 23 Revenue 25 Contents of attached documents: - 4 -
Page 5
1. Qualitative information regarding financial performance (1) Explanation regarding operation results During the six months ended September 30, 2025 (hereafter “this period”), PHC Group generated revenue of JPY 173,375 million, down 0.3% compared to the same period of the previous year (hereafter “year on year”). In Diabetes Management, revenue was on par year on year. But excluding the FX impact, revenue increased slightly. In Healthcare Solutions, despite a decline in revenue from CRO business, overall revenue grew by increased volume of genetic testing in LSIM business and encouraging results in revenue from the business related to electronic medical records and medical-receipt systems in Healthcare IT Solutions. In Diagnostics & Life Sciences, revenue decreased mainly due to the appreciation of the yen against USD and the impact of stagnant market conditions, particularly in the U.S. Operating profit for this period was JPY 10,378 million, up 12.7% year on year. In Diabetes Management, operating profit increased significantly due to the strong performance of Blood Glucose Monitoring (hereafter “BGM”) business, mainly in developed countries. In Healthcare Solutions, operating profit declined due to the weaker demand for high-margin electronic prescriptions software and the impact of decreased revenue in CRO business. Diagnostics & Life Sciences also saw a decline in operating profit due to lower revenues in Biomedical (PHCbi) business and In Vitro Diagnostics (hereafter “IVD”) business, and the impact of transferring some of corporate functions described below. Adjusted EBITDA was JPY 24,260 million, up 4.2% year on year. Adjustment items include one-time income/expense relating to restructuring (additions of JPY 452 million in this period and JPY 315 million in the same period of the previous fiscal year, hereafter “the previous period”) and one-time income/expense relating to transformational M&A pre-acquisition and integration costs (additions of JPY 80 million in this period and JPY 25 million in the previous period). Profit before tax was JPY 941 million, down 87.3% year on year. Despite a decrease in interest expenses, this decline was due to foreign exchange losses of JPY 6,842 million recorded during this period, compared to foreign exchange gains of JPY 1,210 million in the previous period. Loss attributable to owners of parent was JPY 559 million (Profit of JPY 4,100 million in the previous period) due to the recorded corporate income tax expenses of JPY 1,634 million. Please note that, starting from this period, we have reviewed corporate functions and transferred some headquarters roles to each business. While this review 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 for each segment. - 5 -
Page 6
Six months ended September 30, 2024 (million yen) Six months ended September 30, 2025 (million yen) Change Revenue 173,863 173,375 (0.3%) Operating profit 9,212 10,378 12.7% EBITDA 23,579 23,727 0.6% Adjusted EBITDA 23,293 24,260 4.2% Profit before tax 7,411 941 (87.3%) Profit (loss) 4,022 (692) － Profit (loss) attributable to owners of parent 4,100 (559) － Average exchange rate JPY/USD JPY 152.51 JPY 145.96 JPY(6.55) Average exchange rate JPY/EUR JPY 165.86 JPY 168.13 JPY 2.27 Six months ended September 30, 2024 (million yen) Six months ended September 30, 2025 (million yen) Change Operating profit 9,212 10,378 12.7% + Depreciation 14,310 13,347 (6.7%) + Impairment loss (excluding marketable securities) 56 1 (98.2%) EBITDA 23,579 23,727 0.6% (Adjusted amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs 25 80 220.0% + One-time income/expense relating to restructuring 315 452 43.5% + One-time income/expense relating to disposal/sales of asset － － － + Other one-time income/expense (627) － － Adjusted EBITDA 23,293 24,260 4.2% (Note) EBITDA and Adjusted EBITDA are not measures in accordance with IFRS. 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
Six months ended September 30, 2024 (million yen) Six months ended September 30, 2025 (million yen) Change Revenue 48,259 48,678 0.9% Operating profit 6,361 9,328 46.6% EBITDA 9,741 11,552 18.6% Adjusted EBITDA 9,848 11,744 19.3% Six months ended September 30, 2024 (million yen) Six months ended September 30, 2025 (million yen) Change Operating profit 6,361 9,328 46.6% + Depreciation 3,323 2,224 (33.1%) + Impairment loss (excluding marketable securities) 56 － － EBITDA 9,741 11,552 18.6% (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs － － － + One-time income/expense relating to restructuring 106 192 81.1% + One-time income/expense relating to disposal/sales of asset － － － + Other one-time income/expense － － － Adjusted EBITDA 9,848 11,744 19.3% 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 48,678 million, up 0.9% year on year. Despite ongoing market contraction and the shift to low-priced channels in developed markets, BGM business performed strongly 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. In Europe, solid performance also contributed to the positive results. Additionally, in Continuous Glucose Monitoring (hereafter “CGM”) business, revenue increased in the U.S. due to Eversense 365 system, which was launched during the third quarter of the previous consolidated fiscal year and allows users one year of uninterrupted use. - 7 -
Page 8
<Operating Profit and Adjusted EBITDA Situation> The operating profit of Diabetes Management for this period was JPY 9,328 million, up 46.6% year on year. Despite a negative impact of JPY 143 million due to the earlier-mentioned transfer of some corporate functions, this was due to a significant profit increase in BGM business, driven by sales in developed countries, improved profit margins by profit improvement and price initiatives, the cost reduction with restructuring to date, and a lower depreciation expenses. Adjusted EBITDA was JPY 11,744 million, up 19.3% year on year. Adjustment items included one-time income/expense relating to restructuring (additions of JPY 192 million in this period and JPY 106 million in the previous period, respectively). - 8 -
Page 9
Six months ended September 30, 2024 (million yen) Six months ended September 30, 2025 (million yen) Change Revenue 61,484 62,653 1.9% Operating profit 3,635 2,970 (18.3%) EBITDA 8,620 8,175 (5.2%) Adjusted EBITDA 8,646 8,256 (4.5%) Six months ended September 30, 2024 (million yen) Six months ended September 30, 2025 (million yen) Change Operating profit 3,635 2,970 (18.3%) + Depreciation 4,984 5,205 4.4% + Impairment loss (excluding marketable securities) － － － EBITDA 8,620 8,175 (5.2%) (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs 25 80 220.0% + One-time income/expense relating to restructuring － － － + One-time income/expense relating to disposal/sales of asset － － － + Other one-time income/expense － － － Adjusted EBITDA 8,646 8,256 (4.5%) 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 62,653 million, up 1.9% year on year. A breakdown includes LSIM business at JPY 33,613 million, up 2.0% year on year, Healthcare IT Solutions business at JPY 25,774 million, up 6.1% year on year, and CRO business at JPY 3,265 million, down 23.0% year on year. In LSIM business, revenue increased slightly due mainly to the sales increase of genetic testing, one of LSIM’s growth initiatives. In Healthcare IT Solutions, robust 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 as in the previous period large-scale safety testing in the non-clinical testing business completed. - 9 -
Page 10
<Operating Profit and Adjusted EBITDA Situation> Operating profit in Healthcare Solutions for this period was JPY 2,970 million, down 18.3% year on year. In LSIM business, profit grew through higher revenue and cost reduction efforts. However, operating profit declined due to lower demand for high-margin electronic prescription software and increased depreciation costs and rising purchase prices for IT equipment among other factors in Healthcare IT Solutions business, and lower revenue in CRO business. The reduction due to the earlier-mentioned transfer of some corporate functions was JPY 41 million. Adjusted EBITDA was JPY 8,256 million, down 4.5% year on year. Adjustment items include one-time income/expense relating to transformational M&A pre-acquisition and integration costs (additions of JPY 80 million in this period and JPY 25 million in the previous period, respectively). - 10 -
Page 11
Six months ended September 30, 2024 (million yen) Six months ended September 30, 2025 (million yen) Change Revenue 62,561 59,142 (5.5%) Operating profit 3,494 1,317 (62.3%) EBITDA 9,156 6,933 (24.3%) Adjusted EBITDA 8,647 6,935 (19.8%) Six months ended September 30, 2024 (million yen) Six months ended September 30, 2025 (million yen) Change Operating profit 3,494 1,317 (62.3%) + Depreciation 5,661 5,615 (0.8%) + Impairment loss (excluding marketable securities) － 1 － EBITDA 9,156 6,933 (24.3%) (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs － － － + One-time income/expense relating to restructuring 122 2 (98.4%) + One-time income/expense relating to disposal/sales of asset － － － + Other one-time income/expense (631) － － Adjusted EBITDA 8,647 6,935 (19.8%) 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 59,142 million, down 5.5% year on year. This includes JPY 27,732 million in Pathology business, down 1.8% year on year, JPY 22,864 million in Biomedical (PHCbi) business, down 6.0% year on year, and JPY 8,545 million in IVD business, down 14.7% year on year. In Pathology business, excluding the FX impact, revenue was on par year on year. Revenue declined in the Americas due to continued softness in equipment demand. On the other hand, Europe achieved revenue growth, driven by the steady performance of microscope slides and consumables, as well as the acquisition of large-scale projects for digital pathology products during the first quarter of this consolidated fiscal year. In Asia Pacific, revenue increased supported by the modest recovery in China related to portfolio expansion as part of the China for China manufacturing transfer project which included the start of digital pathology manufacturing as well. In Biomedical (PHCbi) business, revenue decreased due to the appreciated yen against USD and lower demand caused by U.S. policies, despite signs of recovery in Europe, Japan, and other areas. In the Americas, demand remains slow due to ongoing budget cuts at US government agencies, universities, and research institutions, as well as frequent delays in biopharmaceutical-related and small-to-medium-sized projects. In EMEA, despite the negative effects of investment halts and R&D pullbacks by major pharmaceutical companies in the UK caused by policy concerns, revenue increased due to strong performance in France, the Middle East, and other regions. In Japan, revenue growth was driven by large-scale projects, including the construction of new university research - 11 -
Page 12
buildings. In IVD business, revenue declined mainly due to lower sales of reagents for PATHFAST™ Immunoanalyzer and 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 1,317 million, down 62.3% year on year. While Pathology business was driven by the positive effect of price revisions and the record of other income due to changes in the classification of affiliated companies, Biomedical and IVD businesses were unable to absorb the impact of lower revenues by cost down initiatives and other efforts. Additionally, the reduction of JPY 551 million due to the earlier-mentioned transfer of some corporate functions, the absence of one-time income recorded in IVD business during the previous period, and approx. JPY 800 million the tariff impacts were main contributing factors to the lower operating profit. Adjusted EBITDA was JPY 6,935 million, down 19.8% year on year. Adjustment items include one-time income/expense relating to restructuring (additions of JPY 2 million in this period and JPY 122 million in the previous period, respectively). - 12 -
Page 13
(2) Explanation regarding financial condition position (Balance Sheet) Asset The balance of total assets in the second quarter of this fiscal year was JPY 525,819 million. The balance decreased by JPY 6,663 million compared to the previous fiscal year-end. The balance decrease primarily reflects a cash and cash equivalents decrease of JPY 6,283 million, mainly due to loan repayment and distribution of dividends, and property, plant and equipment decrease of JPY 4,088 million, mainly due to progress in depreciation, and other financial assets decrease of JPY 2,582 million mainly due to the market valuation of securities. On the other hand, goodwill increased by JPY 5,600 million, due to the impact of weakened yen. Liability The balance of total liabilities in the second quarter of this fiscal year was JPY 379,777 million. The balance decreased by JPY 11,533 million compared to the previous fiscal year-end.The main reason is, borrowings decreased by net amount JPY 7,569 million primarily due to loan repayments and on the other hand increased due to the impact of weakened yen. In addition, other financial liabilities decreased by JPY 3,751 million. Equity The balance of equity in the second quarter of this fiscal year was JPY 146,061 million. The balance increased by JPY 4,869 million compared to the previous fiscal year-end. Other components of equity increased by JPY 7,732 million, mainly due to translation difference of foreign operations. On the other hand, retained earnings decreased by JPY 2,946 million mainly due to JPY 559 million of loss attributable to owners of parent and JPY 2,650 million of dividends. In addition, the ratio of equity attributable to owners of parent to total assets increased by 1.3 points from 26.6% at the end of the previous fiscal year to 27.9%. (3) Explanation regarding cash flow Cash and cash equivalents at the end of the period amounted to JPY 33,309 million, a decrease of JPY 6,283 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 12,086 million, which was a decrease of JPY 1,681 million year on year. (Cash flows from investing activities) Net cash used in investing activities was JPY 4,242 million and consisted mainly of purchase of property, plant, and equipment, and intangible assets of JPY 4,380 million. The decrease in net cash used in investing activities of JPY 741 million year on year was mainly due to a decrease in purchase of property, plant, and equipment, and intangible assets. (Cash flows from financing activities) Net cash used in financing activities of JPY 17,562 million consisted mainly of repayments of long-term borrowings of JPY 13,937 million, proceeds from long-term borrowings of JPY 2,999 million and repayments of lease liabilities of JPY 2,963 million. The decrease in net cash used in financing activities of JPY 3,358 million year on year was mainly due to proceeds from long-term borrowings of JPY 2,999 million. - 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 17,400 12,200 7,400 7,400 58.64 45,200 Revised forecasts (B) 363,100 20,000 8,000 4,500 4,400 34.80 47,800 Change (B-A) － 2,600 (4,200) (2,900) (3,000) (23.84) 2,600 Change (%) － 14.9 (34.4) (39.2) (40.5) (40.7) 5.8 (Reference) 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 formula: 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. However, PHC Holdings Corporation believes that this disclosure may be useful information to investors. The exchange rates underlying the full-year financial forecast have been revised, considering the current rates, from JPY 155 to JPY 171 per euro and from JPY 140 to JPY 146 per US dollar. Regarding the transfer of the CGM business (the commercial operation of Eversense), which was announced in the "Notice Regarding the Signing of the Memorandum of Understanding on the Business Transfer of a Consolidated Subsidiary" as of September 4, 2025, though negotiations toward the signing of the Definitive Agreement are ongoing, the expected impact has been incorporated reasonably at this point of time. Additionally, concerning the indication of goodwill impairment in the Diabetes Management segment mentioned in the aforementioned timely disclosure, an impairment test has been conducted, and it has been determined that there is no need for impairment at this stage. Revenue, in total, remains unchanged from the previously announced forecast. In the Diabetes Management segment, on the assumption that the CGM business will be excluded from consolidation from the fourth quarter as planned, the forecast has been revised upward, reflecting an upward revision of the BGM business, which continues to perform strongly, including the positive impact of the exchange rate changes. In the HQ and Others segment, the forecast has also been revised upward, incorporating the elimination of risks initially anticipated. On the other hand, the Healthcare Solutions segment has been revised downward, reflecting the order status of the CRO business. Also the Diagnostics & Life Sciences segment has been revised downward, reflecting the assumption that weak demand for equipment will continue, primarily due to the reduction of government subsidies in the U.S. and other factors. Operating profit has been revised upward by JPY 2.6 billion from the previously announced forecast. While the Diagnostics & Life Sciences segment has been revised downward to reflect the impact of reduced revenue, the Diabetes Management segment has been revised upward with both the impact of the exclusion of the CGM business from consolidation and the increased revenue from the BGM business. Additionally, the HQ and Others segment has also been revised upward, reflecting the impact of increased revenue as well as a review of one-time expenses. Whereas, due to JPY 6.8 billion of foreign exchange losses recorded during the first six months, profit before tax has been revised downward by JPY 4.2 billion, and profit attributable to owners of parent has been - 14 -
Page 15
Segments Revenue (Million JPY) Operating profit(loss) (Million JPY) Adjusted EBITDA (Million JPY) Before Change After Change Before Change* After Change Before Change* After Change Diabetes Management 96,200 99,000 14,000 18,200 18,800 23,400 Healthcare Solutions 132,300 131,300 8,100 8,100 18,800 18,800 Diagnostics and Life Sciences 133,700 128,100 5,600 3,000 16,300 13,700 Head office and Others 1,000 4,800 (10,400) (9,300) (8,700) (8,100) Total 363,100 363,100 17,400 20,000 45,200 47,800 revised downward by JPY 3.0 billion with reduction in tax expenses by JPY 1.2 billion. Forecasts of business performance by segment are as follows: *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 September 30, 2025 Assets Current assets Cash and cash equivalents 39,592 33,309 Trade receivables 70,530 65,370 Inventories 51,694 57,897 Other financial assets 4,308 3,544 Other current assets 6,665 8,935 Total current assets 172,790 169,056 Non-current assets Property, plant and equipment 48,374 44,286 Goodwill 206,500 212,100 Intangible assets 80,649 76,688 Investments accounted for using equity method 1,821 1,006 Other financial assets 13,932 12,113 Deferred tax assets 6,120 8,183 Other non-current assets 2,293 2,382 Total non-current assets 359,691 356,762 Total assets 532,482 525,819 2. Condensed semi-annual consolidated financial statement and significant notes (1) Condensed semi-annual consolidated statement of financial position - 16 -
Page 17
(Unit: million yen) As of March 31, 2025 As of September 30, 2025 Liabilities and equity Liabilities Current liabilities Trade and other payables 65,665 67,093 Borrowings 34,278 245,011 Income taxes payable 4,207 3,350 Provisions 7,725 7,759 Other financial liabilities 5,812 5,309 Other current liabilities 22,865 19,113 Total current liabilities 140,555 347,637 Non-current liabilities Trade and other payables 597 597 Borrowings 220,982 2,680 Retirement benefit liability 5,544 5,748 Provisions 4,575 4,599 Other financial liabilities 8,358 7,022 Deferred tax liabilities 9,291 10,040 Other non-current liabilities 1,405 1,450 Total non-current liabilities 250,755 32,140 Total liabilities 391,310 379,777 Equity Share capital 48,623 48,781 Capital surplus 42,039 42,114 Retained earnings 2,991 44 Treasury shares (568) (568) Other components of equity 48,553 56,286 Equity attributable to owners of parent 141,639 146,658 Non-controlling interests (468) (617) Total equity 141,171 146,041 Total liabilities and equity 532,482 525,819 - 17 -
Page 18
(Unit: million yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Revenue 173,863 173,375 Cost of sales 92,635 93,781 Gross profit 81,227 79,594 Selling, general and administrative expenses 72,071 70,018 Other income 384 1,073 Other expenses 166 337 Share of profit (loss) of investments accounted for using equity method (162) 67 Operating profit 9,212 10,378 Finance income 1,414 169 Finance costs 3,215 9,606 Profit (loss) before taxes 7,411 941 Income tax expense 3,389 1,634 Profit (loss) 4,022 (692) Profit (loss) attributable to Owners of parent 4,100 (559) Non-controlling interests (78) (133) Earnings (loss) per share Basic earnings (loss) per share (Unit: JPY) 32.52 (4.42) Diluted earnings (loss) per share (Unit: JPY) 32.42 (4.42) (2) Condensed semi-annual consolidated statement of profit or loss and condensed semi-annual consolidated statement of comprehensive income (Condensed semi-annual consolidated statement of profit or loss) - 18 -
Page 19
(Unit: million yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Profit (loss) 4,022 (692) Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans (770) 211 Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income (2,114) (2,418) Items that may be reclassified to profit or loss Effective portion of cash flow hedges 43 0 Exchange differences on translation of foreign operations (10,709) 10,520 Share of other comprehensive income of investments accounted for using equity method (97) (383) Other comprehensive income, net of taxes (13,648) 7,928 Comprehensive income (9,626) 7,236 Comprehensive income attributable to Owners of parent (9,563) 7,385 Non-controlling interests (62) (148) Comprehensive income (9,626) 7,236 (Condensed semi-annual 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) － － 4,100 － － － － Other comprehensive income － － － － (770) (2,114) 43 Total comprehensive income － － 4,100 － (770) (2,114) 43 Issuance of new shares 98 (61) － － － － － Dividends to owners of parent － － (2,268) － － － － Forfeiture of share acquisition rights and Restricted Stock Unit － (19) 16 － － － － Share-based payment transactions － 86 － － － － － Transfer from other components of equity to retained earnings － － (916) － 770 146 － Transactions with owners 98 5 (3,168) － 770 146 － As of September 30, 2024 48,522 41,802 (1,841) (568) － (3,078) 40 (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) － － － 4,100 (78) 4,022 Other comprehensive income (10,725) (97) (13,664) (13,664) 16 (13,648) Total comprehensive income (10,725) (97) (13,664) (9,563) (62) (9,626) Issuance of new shares － － － 36 － 36 Dividends to owners of parent － － － (2,268) － (2,268) Forfeiture of share acquisition rights and Restricted Stock Unit － － － (2) － (2) Share-based payment transactions － － － 86 － 86 Transfer from other components of equity to retained earnings － － 916 － － － Transactions with owners － － 916 (2,148) － (2,148) As of September 30, 2024 42,654 271 39,887 127,803 (413) 127,389 (3) Condensed semi-annual 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) － － (559) － － － － Other comprehensive income － － － － 211 (2,418) (0) Total comprehensive income － － (559) － 211 (2,418) (0) Issuance of new shares 158 173 － － － － － Dividends to owners of parent － － (2,650) － － － － Forfeiture of share acquisition rights and Restricted Stock Unit － (60) 51 － － － － Share-based payment transactions － (38) － － － － － Transfer from other components of equity to retained earnings － － 211 － (211) － － Transactions with owners 158 74 (2,387) － (211) － － As of September 30, 2025 48,781 42,114 44 (568) － (2,651) (18) (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) － － － (559) (133) (692) Other comprehensive income 10,535 (383) 7,944 7,944 (15) 7,928 Total comprehensive income 10,535 (383) 7,944 7,385 (148) 7,236 Issuance of new shares － － － 331 － 331 Dividends to owners of parent － － － (2,650) － (2,650) Forfeiture of share acquisition rights and Restricted Stock Unit － － － (9) － (9) Share-based payment transactions － － － (38) － (38) Transfer from other components of equity to retained earnings － － (211) － － － Transactions with owners － － (211) (2,366) － (2,366) As of September 30, 2025 58,983 (26) 56,286 146,658 (617) 146,041 - 21 -
Page 22
(Unit: million yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from operating activities Profit (loss) before taxes 7,411 941 Depreciation and amortization 14,310 13,347 Interest expenses 3,077 2,665 Decrease (increase) in trade receivables 8,813 6,689 Decrease (increase) in inventories (4,023) (4,738) Increase (decrease) in trade payables (4,580) 537 Other (7,705) (658) Subtotal 17,303 18,784 Interest and dividends received 205 97 Interest paid (3,381) (2,622) Income taxes paid (2,454) (4,235) Income taxes refund 2,093 62 Net cash provided by operating activities 13,767 12,086 Cash flows from investing activities Purchase of property, plant and equipment, and intangible assets (5,897) (4,380) Proceeds from sales of property, plant and equipment, and intangible assets 206 277 Other 707 (139) Net cash used in investing activities (4,983) (4,242) Cash flows from financing activities Net increase (decrease) in short-term borrowings (1,523) (998) Proceeds from long-term borrowings － 2,999 Repayments of long-term borrowings (13,518) (13,937) Repayments of lease liabilities (3,631) (2,963) Proceeds from issuance of shares 37 0 Dividends paid to owners of parent (2,268) (2,649) Other (14) (13) Net cash used in financing activities (20,920) (17,562) Effect of exchange rate changes on cash and cash equivalents (1,937) 3,435 Net increase (decrease) in cash and cash equivalents (14,074) (6,283) Beginning balance of cash and cash equivalents 47,044 39,592 Ending balance of cash and cash equivalents 32,969 33,309 (4) Condensed semi-annual consolidated statement of cash flows - 22 -
Page 23
(5) Notes to condensed semi-annual consolidated financial statements Notes for going concern Not applicable Reportable segments 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 48,259 61,484 62,561 172,305 1,557 173,863 Intersegment sales － － － － － － Total 48,259 61,484 62,561 172,305 1,557 173,863 Operating profit (loss) 6,361 3,635 3,494 13,491 (4,278) 9,212 Finance income 1,414 Finance costs 3,215 Profit (loss) before taxes 7,411 Other items Depreciation and Amortization 3,323 4,984 5,661 13,970 340 14,310 Impairment losses 56 － － 56 － 56 (Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Subtotal Others, adjustments and eliminations Consolidated basis Revenue Sale from external customers 48,678 62,653 59,142 170,474 2,901 173,375 Intersegment sales － － － － － － Total 48,678 62,653 59,142 170,474 2,901 173,375 Operating profit (loss) 9,328 2,970 1,317 13,616 (3,237) 10,378 Finance income 169 Finance costs 9,606 Profit (loss) before taxes 941 Other items Depreciation and Amortization 2,224 5,205 5,615 13,044 302 13,347 Impairment losses － － 1 1 － 1 2) Segment revenues and operating results Six months ended September 30, 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. Six months ended September 30, 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. - 24 -
Page 25
(Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Other Total By region Japan 2,178 61,185 10,384 87 73,835 Europe 26,009 57 14,861 － 40,928 North America 10,442 58 28,510 － 39,011 Other 9,628 183 8,805 1,470 20,087 Total 48,259 61,484 62,561 1,557 173,863 (Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Other Total By region Japan 1,802 62,352 10,015 66 74,236 Europe 26,855 151 15,827 － 42,834 North America 11,240 13 24,886 － 36,140 Other 8,779 136 8,413 2,834 20,164 Total 48,678 62,653 59,142 2,901 173,375 Revenue Disaggregation of revenue Revenue disaggregation by reportable segments and major regions is as follows. Six months ended September 30, 2024 Six months ended September 30, 2025 - 25 -