Interim report
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Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ IFRS ] Company Name : PHC HOLDINGS CORPORATION Stock Code : 6523 ( URL : https://www.phchd.com/global/ir ) Stock Exchange Listing : Tokyo Standards Hards Foundation Financial Acc Accounting FASF MEMBERSHIP August 6 , 2026 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 First Quarter results : Yes Scheduled date of the First Quarter Results Briefing Session : Yes ( Figures are rounded down to the nearest million yen ) 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( From April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Results of Operations ( % indicates changes from the previous corresponding term ) Profit Revenue Operating profit Profit before taxes Profit attributable to owners Comprehensive income of parent Millions Millions % % of yen of yen Millions of yen % Millions of yen Millions Millions % % % of yen of yen Three Months ended June 30 , 90,672 8.1 10,413 171.0 8,133 6.293 6,338 10,119 2026 Three Months ended June 30 , 2025 83,856 ( 1.6 ) 3,843 89.6 ( 1,990 ) ( 2,474 ) ( 2,341 ) ( 1,330 ) Basic earnings per Diluted earnings per share share Yen Yen Three Months ended June 30 , 50.06 49.84 2026 Three Months ended June 30 , ( 18.55 ) ( 18.55 ) 2025 ( Note ) Share of profit ( loss ) of investments accounted for using equity method : June 30 , 2026 ... ( 28 ) million yen June 30 , 2025 ... ( 8 ) million yen - 1 -
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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 % June 30, 2026 543,077 168,468 169,314 31.2 March 31, 2026 542,510 160,880 161,668 29.8 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, 2026 - 21.00 - 21.00 42.00 March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 21.00 - 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, 2027 359,700 (1.3) 27,000 19.0 22,000 244.3 15,400 - 15,400 - 121.73 (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, 2027 (From April 1, 2026 to March 31, 2027) (% indicates year-on-year changes) (Note) Revision of consolidated earnings forecasts to the latest announcement: None - 2 -
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As of June 30, 2026 127,320,915 Shares As of March 31, 2026 126,724,020 Shares As of June 30, 2026 212,023 Shares As of March 31, 2026 211,966 Shares Three months ended June 30, 2026 126,619,910 Shares Three months ended June 30, 2025 126,254,536 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 -
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1. Qualitative information regarding financial performance (1) Explanation regarding operation results 5 (2) Explanation regarding financial position 12 (3) Explanation regarding cash flow 12 (4) Explanation regarding future prospects (ex. forecasted consolidated business results) 13 2. Condensed consolidated quarterly financial statement and significant notes (1) Condensed quarterly consolidated statement of financial position 14 (2) Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated statement of comprehensive income 16 (3) Condensed quarterly consolidated statement of changes in equity 18 (4) Condensed quarterly consolidated statement of cash flows 20 (5) Notes to condensed quarterly consolidated financial statements 21 Notes for going concern 21 Segment information 21 Revenue 23 Contents of attached documents: - 4 -
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1. Qualitative information regarding financial performance (1) Explanation regarding operation results Please note that some of our business names and segment classifications have been changed from the three months ended June 30, 2026 (hereafter “this period”). BGM business in “Diabetes Management” segment has been renamed “Diabetes Management business”, while LSIM business in “Healthcare Solutions” segment has been renamed “Clinical Testing business”. In addition, Biomedical business and IVD business within “Diagnostics & Life Sciences” segment have been integrated into “Life Sciences business”. Furthermore, the B-to-B business in Indonesia, previously included in “Others” has been transferred to “Diagnostics & Life Sciences” and included in “Life Sciences business”. The following descriptions reflect these revised classifications, and segment information for the previous period has restated accordingly. During this period, PHC Group generated revenue of JPY 90,672 million, up 8.1% compared to the same period of the previous year (hereafter “year on year”). In Diabetes Management, revenue increased mainly due to strong sales and the positive impact of foreign exchange despite ongoing market decline and the shift to low-priced channels in developed countries. In Healthcare Solutions, despite lower revenue in Healthcare IT Solutions business, revenue increased mainly due to higher volumes of general testing and sales growth in genetic testing as a growth initiative in Clinical Testing business, and increased orders in CRO business. In Diagnostics & Life Sciences, revenue increased due to solid consumables sales and the effects of price revisions in Pathology business, solid sales in Asia in Life Sciences business, and favorable foreign exchange effects. Operating profit for this period was JPY 10,413 million, up 171.0% year on year. In Diabetes Management, operating profit increased significantly due to strong sales, cost reductions, improved profit margins following the transfer of the Continuous Glucose Monitoring (hereafter "CGM") business, and the positive impact of foreign exchange. In Healthcare Solutions, operating profit increased mainly due to higher revenue in Clinical Testing business and CRO business, as well as cost reduction initiatives. Diagnostics & Life Sciences saw an increase in operating profit primarily because of price revisions, lower SG&A expenses, and the impact of U.S. tariffs refunds. Adjusted EBITDA was JPY 17,253 million, up 58.1% year on year. Adjustment items include one-time income/expense relating to restructuring (additions of JPY 137 million in this period and JPY 368 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 61 million in this period and JPY 36 million in the previous period, respectively). Profit before tax was JPY 8,133 million (loss of JPY 1,990 million in the previous period). This was mainly due to the increase in operating profit and a decrease in foreign exchange losses. Profit attributable to owners of parent was JPY 6,338 million (loss of JPY 2,341 million in the previous period). - 5 -
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Three months ended June 30, 2025 (million yen) Three months ended June 30, 2026 (million yen) Change Revenue 83,856 90,672 8.1% Operating profit 3,843 10,413 171.0% EBITDA 10,506 17,075 62.5% Adjusted EBITDA 10,911 17,253 58.1% Profit (loss) before tax (1,990) 8,133 － Profit (loss) (2,474) 6,293 － Profit (loss) attributable to owners of parent (2,341) 6,338 － Average exchange rate JPY/USD JPY 144.46 JPY 159.40 JPY 14.94 Average exchange rate JPY/EUR JPY 163.86 JPY 185.28 JPY 21.42 Three months ended June 30, 2025 (million yen) Three months ended June 30, 2026 (million yen) Change Operating profit 3,843 10,413 171.0% + Depreciation 6,661 6,691 0.5% + Impairment loss (excluding marketable securities) 1 (28) － EBITDA 10,506 17,075 62.5% (Adjusted amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs 36 61 69.4% + One-time income/expense relating to restructuring 368 137 (62.8%) + One-time income/expense relating to termination/cancellation of contracts － (20) － + Other one-time income/expense － － － Adjusted EBITDA 10,911 17,253 58.1% (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 -
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Three months ended June 30, 2025 (million yen) Three months ended June 30, 2026 (million yen) Change Revenue 23,137 27,814 20.2% Operating profit 3,953 9,180 132.2% EBITDA 5,043 10,295 104.1% Adjusted EBITDA 5,160 10,353 100.6% Three months ended June 30, 2025 (million yen) Three months ended June 30, 2026 (million yen) Change Operating profit 3,953 9,180 132.2% + Depreciation 1,090 1,144 5.0% + Impairment loss (excluding marketable securities) － (28) － EBITDA 5,043 10,295 104.1% (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs － 61 － + One-time income/expense relating to restructuring 116 (2) － + One-time income/expense relating to termination/cancellation of contracts － － － + Other one-time income/expense － － － Adjusted EBITDA 5,160 10,353 100.6% 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 27,814 million, up 20.2% year on year. Despite ongoing market decline and the shift to low-priced channels in developed countries, revenue in BGM business increased due to higher sales volume in the U.S. and strong sales in Europe, particularly in Germany, Italy, and Greece. Revenue in emerging countries increased due to the recovery in the Middle East and progress in localization initiatives in Algeria. Revenue increased significantly year on year with favorable foreign exchange effects and offset the negative impact from the transfer of CGM business. <Operating Profit and Adjusted EBITDA Situation> Operating profit in Diabetes Management for this period was JPY 9,180 million, up 132.2% year on year. Operating profit increased significantly due to strong sales in developed countries, as well as revenue growth in emerging markets. In addition, favorable foreign exchange effects, cost reduction with restructuring to date, and improved profitability related to the transfer of CGM business contributed to the substantial increase in profit. Adjusted EBITDA was JPY 10,353 million, up 100.6% year on year. Adjustment items included one-time income/expense relating to transformational M&A pre-acquisition and integration costs (addition of JPY 61 million in this period), attributable to the expenses related to the transfer of CGM business. - 7 -
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Three months ended June 30, 2025 (million yen) Three months ended June 30, 2026 (million yen) Change Revenue 30,474 30,976 1.6% Operating profit 860 1,097 27.6% EBITDA 3,492 3,578 2.5% Adjusted EBITDA 3,529 3,696 4.7% Three months ended June 30, 2025 (million yen) Three months ended June 30, 2026 (million yen) Change Operating profit 860 1,097 27.6% + Depreciation 2,632 2,481 (5.7%) + Impairment loss (excluding marketable securities) － － － EBITDA 3,492 3,578 2.5% (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs 36 － － + One-time income/expense relating to restructuring － 117 － + One-time income/expense relating to termination/cancellation of contracts － － － + Other one-time income/expense － － － Adjusted EBITDA 3,529 3,696 4.7% 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 30,976 million, up 1.6% year on year. A breakdown includes Clinical Testing business at JPY 17,250 million, up 2.4% year on year, Healthcare IT Solutions business at JPY 11,559 million, down 5.0% year on year, and CRO business at JPY 2,166 million, up 47.4% year on year. In Clinical Testing business, revenue increased due to higher volumes of general testing, sales growth in genetic testing as a growth initiative, and progress in pricing optimization. In Healthcare IT Solutions business, revenue decreased due to the decline from the strong replacement demand for electronic medical record and medical-receipt systems in the previous period, despite increased revenue driven by growing demand for electronic prescription software. In CRO business, revenue increased primarily due to higher orders, in both clinical trial and non-clinical testing businesses in the previous fiscal year, as well as the completion of large-scale safety testing in the non-clinical testing business. - 8 -
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<Operating Profit and Adjusted EBITDA Situation> Operating profit in Healthcare Solutions for this period was JPY 1,097 million, up 27.6% year on year. Despite the lower revenue in Healthcare IT Solutions business, operating profit increased due to higher revenue in Clinical Testing and CRO businesses, as well as improved profitability driven by mainly progress in pricing optimization and cost reduction efforts. Adjusted EBITDA was JPY 3,696 million, up 4.7% year on year. Adjustment items include one-time income/expense relating to restructuring (addition of JPY 117 million in this period). - 9 -
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Three months ended June 30, 2025 (million yen) Three months ended June 30, 2026 (million yen) Change Revenue 30,177 31,797 5.4% Operating profit 871 1,813 108.2% EBITDA 3,659 4,688 28.1% Adjusted EBITDA 3,660 4,691 28.2% Three months ended June 30, 2025 (million yen) Three months ended June 30, 2026 (million yen) Change Operating profit 871 1,813 108.2% + Depreciation 2,786 2,875 3.2% + Impairment loss (excluding marketable securities) 1 － － EBITDA 3,659 4,688 28.1% (Adjustment amount) + One-time income/expense relating to transformational M&A pre-acquisition and integration costs － － － + One-time income/expense relating to restructuring 0 23 － + One-time income/expense relating to termination/cancellation of contracts － (20) － + Other one-time income/expense － － － Adjusted EBITDA 3,660 4,691 28.2% Diagnostics and Life Sciences (Calculation table of EBITDA and adjusted EBITDA) (Note) 1. The B-to-B business in Indonesia, which was previously in "Others," has been transferred to “Diagnostics and Life Sciences” and classified as “Life Sciences business”. Segment information for the previous period has also been restated to reflect this change. 2. 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 31,797 million, up 5.4% year on year. This includes JPY 14,286 million in Pathology business, up 5.1% year on year, JPY 17,511 million in Life Sciences business, up 5.6% year on year. In Pathology business, revenue increased year on year, driven by solid consumables sales, the positive effect of price revisions, and favorable foreign exchange effects. On the other hand, equipment sales declined due to slow demand of capital equipment combined with the absence of large-scale projects for digital pathology products recorded in the previous period. In Life Sciences business, revenue increased mainly due to the positive impact of foreign exchange rates and solid sales of the laboratory and medical support equipment in Japan and Asia. In the Americas, despite delays in large- scale projects for pharmaceutical companies, revenue increased due to higher orders for smaller-scale projects and the positive impact of favorable foreign exchange. In contrast, revenue in EMEA declined as stagnant market conditions in France, Germany, and other countries more than offset favorable foreign exchange effects and the contribution from year-end academic demand in the U.K. In IVD area, revenue increased slightly year on year, as strong sales in EMEA and Asia more than offset lower sales in Americas. - 10 -
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<Operating Profit and Adjusted EBITDA Situation> Operating profit in Diagnostics and Life Sciences for this period was JPY 1,813 million, up 108.2% year on year. Operating profit increased due to the effects of price revisions, lower SG&A expenses, U.S. tariff refunds, and favorable foreign exchange effects. Adjusted EBITDA was JPY 4,691 million, up 28.2% year on year. Adjustment items include one-time income/expense relating to restructuring (additions of JPY 23 million in this period and JPY 0 million in the previous period, respectively) and one-time income/expense relating to termination/cancellation of contracts (subtraction of JPY 20 million in this period). - 11 -
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(2) Explanation regarding financial position Assets The balance of total assets in this period was JPY 543,077 million. The balance increased by JPY 567 million compared to the previous fiscal year-end. Main changes are goodwill increased by JPY 1,849 million attributable to the impact of currency fluctuation, and intangible assets decreased by JPY 1,901 million, mainly due to progress in amortization of intangible assets recognized through past business acquisitions. Liabilities The balance of total liabilities in this period was JPY 374,609 million. The balance decreased by JPY 7,020 million compared to the previous fiscal year-end. The main changes are loan balance decreased by JPY 5,294 million mainly due to the repayments, trade and other payables decreased by JPY 4,902 million, and Income taxes payable increased by JPY 1,170 million. Equity The balance of equity in this period was JPY 168,468 million. The balance increased by JPY 7,587 million compared to the previous fiscal year-end. Other components of equity increased by JPY 2,921 million, mainly due to translation differences of foreign operations. Retained earnings increased by JPY 4,600 million mainly due to JPY 6,338 million of profit attributable to owners of parent, despite dividends of JPY 2,656 million. In addition, the ratio of equity attributable to owners of parent to total assets increased by 1.4 points from 29.8% at the end of the previous fiscal year to 31.2%. (3) Explanation regarding cash flow Cash and cash equivalents at the end of this period amounted to JPY 41,282 million, reflecting an increase of JPY 1,462 million from March 31, 2026. The status of 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 14,331 million, which was an increase of JPY 8,948 million year on year. The year on year increase in net cash provided by operating activities was primarily due to increased profit before taxes and decreased income taxes paid. (Cash flows from investing activities) Net cash used in investing activities was JPY 3,313 million and consisted mainly of purchase of property, plant, and equipment, and intangible assets of JPY 2,727 million. This represents a year on year increase of JPY 1,248 million in net cash used in investing activities which was primarily due to decreased purchase of property, plant and equipment and intangible assets of JPY 486 million. (Cash flows from financing activities) Net cash used in financing activities of JPY 10,018 million consists mainly of repayments of borrowings of JPY 5,958 million and Dividends paid to owners of parent over JPY 2,490 million. The year on year decrease was JPY 528 million. - 12 -
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(4) Explanation regarding future prospects (ex. forecasted consolidated business results) There is no change from forecasts for consolidated financial results released on May 13, 2026. - 13 -
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(Unit: million yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 39,820 41,282 Trade receivables 70,283 66,236 Inventories 53,095 55,139 Other financial assets 4,925 4,805 Other current assets 8,055 7,761 Total current assets 176,180 175,225 Non-current assets Property, plant and equipment 49,242 48,596 Goodwill 221,524 223,374 Intangible assets 74,371 72,470 Investments accounted for using equity method 730 651 Other financial assets 10,988 10,881 Deferred tax assets 6,482 7,067 Other non-current assets 2,990 4,812 Total non-current assets 366,330 367,852 Total assets 542,510 543,077 2. Condensed consolidated quarterly financial statement and significant notes (1) Condensed quarterly consolidated statement of financial position - 14 -
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(Unit: million yen) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 72,379 67,529 Borrowings 78,254 78,289 Income taxes payable 2,588 3,759 Provisions 8,234 8,463 Other financial liabilities 5,709 5,802 Other current liabilities 22,467 23,623 Total current liabilities 189,634 187,467 Non-current liabilities Trade and other payables 537 485 Borrowings 156,303 150,974 Retirement benefit liability 5,962 5,038 Provisions 4,955 6,590 Other financial liabilities 11,278 11,170 Deferred tax liabilities 11,472 11,782 Other non-current liabilities 1,487 1,101 Total non-current liabilities 191,995 187,141 Total liabilities 381,630 374,609 Equity Share capital 48,785 49,114 Capital surplus 42,636 42,430 Retained earnings (3,846) 754 Treasury shares (568) (568) Other components of equity 74,662 77,583 Equity attributable to owners of parent 161,668 169,314 Non-controlling interests (788) (846) Total equity 160,880 168,468 Total liabilities and equity 542,510 543,077 - 15 -
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(Unit: million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Revenue 83,856 90,672 Cost of sales 45,063 46,873 Gross profit 38,792 43,799 Selling, general and administrative expenses 34,962 34,020 Other income 276 813 Other expenses 254 150 Share of profit (loss) of investments accounted for using equity method (8) (28) Operating profit 3,843 10,413 Finance income 45 122 Finance costs 5,879 2,402 Profit (loss) before taxes (1,990) 8,133 Income tax expense 483 1,839 Profit (loss) (2,474) 6,293 Profit (loss) attributable to Owners of parent (2,341) 6,338 Non-controlling interests (133) (44) Earnings (loss) per share Basic earnings (loss) per share (Unit: JPY) (18.55) 50.06 Diluted earnings (loss) per share (Unit: JPY) (18.55) 49.84 (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) - 16 -
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(Unit: million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit (loss) (2,474) 6,293 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans 188 917 Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income (1,942) (389) Items that may be reclassified to profit or loss Effective portion of cash flow hedges (80) － Exchange differences on translation of foreign operations 3,082 3,348 Share of other comprehensive income of investments accounted for using equity method (102) (50) Other comprehensive income, net of taxes 1,144 3,825 Comprehensive income (1,330) 10,119 Comprehensive income attributable to Owners of parent (1,193) 10,177 Non-controlling interests (136) (57) Comprehensive income (1,330) 10,119 (Condensed quarterly consolidated statement of comprehensive income) - 17 -
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(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) － － (2,341) － － － － Other comprehensive income － － － － 188 (1,942) (80) Total comprehensive income － － (2,341) － 188 (1,942) (80) Issuance of new shares 158 174 － － － － － Purchase of treasury shares － － － － － － － Dividends to owners of parent － － (2,650) － － － － Forfeiture of share acquisition rights and Restricted Stock Unit － (39) 37 － － － － Share-based payment transactions － (229) － － － － － Transfer from other components of equity to retained earnings － － 188 － (188) － － Other － － 2 － － － － Transactions with owners 158 (93) (2,422) － (188) － － As of June 30, 2025 48,781 41,946 (1,773) (568) － (2,175) (98) (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) － － － (2,341) (133) (2,474) Other comprehensive income 3,085 (102) 1,148 1,148 (3) 1,144 Total comprehensive income 3,085 (102) 1,148 (1,193) (136) (1,330) Issuance of new shares － － － 332 － 332 Purchase of treasury shares － － － － － － Dividends to owners of parent － － － (2,650) － (2,650) Forfeiture of share acquisition rights and Restricted Stock Unit － － － (2) － (2) Share-based payment transactions － － － (229) － (229) Transfer from other components of equity to retained earnings － － (188) － － － Other － － － 2 － 2 Transactions with owners － － (188) (2,546) － (2,546) As of June 30, 2025 51,533 254 49,514 137,900 (604) 137,295 (3) Condensed quarterly consolidated statement of changes in equity - 18 -
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(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, 2026 48,785 42,636 (3,846) (568) － (701) － Comprehensive income Profit (loss) － － 6,338 － － － － Other comprehensive income － － － － 917 (389) － Total comprehensive income － － 6,338 － 917 (389) － Issuance of new shares 329 274 － － － － － Purchase of treasury shares － － － (0) － － － Dividends to owners of parent － － (2,656) － － － － Forfeiture of share acquisition rights and Restricted Stock Unit － (17) 1 － － － － Share-based payment transactions － (461) － － － － － Transfer from other components of equity to retained earnings － － 917 － (917) － － Other － － 0 － － － － Transactions with owners 329 (205) (1,737) (0) (917) － － As of June 30, 2026 49,114 42,430 754 (568) － (1,091) － (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, 2026 75,387 (23) 74,662 161,668 (788) 160,880 Comprehensive income Profit (loss) － － － 6,338 (44) 6,293 Other comprehensive income 3,361 (50) 3,838 3,838 (13) 3,825 Total comprehensive income 3,361 (50) 3,838 10,177 (57) 10,119 Issuance of new shares － － － 603 － 603 Purchase of treasury shares － － － (0) － (0) Dividends to owners of parent － － － (2,656) － (2,656) Forfeiture of share acquisition rights and Restricted Stock Unit － － － (15) － (15) Share-based payment transactions － － － (461) － (461) Transfer from other components of equity to retained earnings － － (917) － － － Other － － － 0 － 0 Transactions with owners － － (917) (2,531) － (2,531) As of June 30, 2026 78,749 (74) 77,583 169,314 (846) 168,468 - 19 -
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(Unit: million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from operating activities Profit before taxes (1,990) 8,133 Depreciation and amortization 6,661 6,691 Interest expenses 1,466 1,767 Decrease (increase) in trade receivables 8,007 4,500 Decrease (increase) in inventories (4,037) (1,472) Increase (decrease) in trade payables (3,294) (4,821) Other 3,043 1,981 Subtotal 9,855 16,780 Interest and dividends received 44 114 Interest paid (1,375) (1,441) Income taxes paid (3,150) (1,122) Income taxes refund 10 0 Net cash provided by operating activities 5,383 14,331 Cash flows from investing activities Purchase of property, plant and equipment, and intangible assets (2,241) (2,727) Proceeds from sales of property, plant and equipment, and intangible assets 198 30 Other (22) (616) Net cash used in investing activities (2,065) (3,313) Cash flows from financing activities Net increase (decrease) in short-term borrowings 336 7 Repayments of long-term borrowings (6,893) (5,958) Repayments of lease liabilities (1,517) (1,592) Dividends paid to owners of parent (2,462) (2,490) Other (10) 14 Net cash used in financing activities (10,546) (10,018) Effect of exchange rate changes on cash and cash equivalents 2,467 461 Net increase (decrease) in cash and cash equivalents (4,759) 1,462 Beginning balance of cash and cash equivalents 39,592 39,820 Ending balance of cash and cash equivalents 34,833 41,282 (4) Condensed quarterly consolidated statement of cash flows - 20 -
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(5) Notes to condensed quarterly 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 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: (Note) PHC Holdings and its subsidiaries (hereinafter "the Group") has changed the composition of its reportable segments from the fiscal year ending March 31, 2027. The B-to-B business in Indonesia, which was previously included in “Others” has been transferred to “Diagnostics & Life Sciences.” Accordingly, the Group has restated the previously reported segment information for the fiscal year ended March 31, 2026 to reflect this change. - 21 -
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(Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Subtotal Others, adjustments and eliminations Consolidated basis Revenue Sale from external customers 23,137 30,474 30,177 83,789 66 83,856 Intersegment sales － － － － － － Total 23,137 30,474 30,177 83,789 66 83,856 Operating profit (loss) 3,953 860 871 5,685 (1,842) 3,843 Financial income 45 Financial costs 5,879 Profit (loss) before taxes (1,990) Other items Depreciation and Amortization 1,090 2,632 2,786 6,508 152 6,661 Impairment losses － － 1 1 － 1 (Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Subtotal Others, adjustments and eliminations Consolidated basis Revenue Sale from external customers 27,814 30,976 31,797 90,589 82 90,672 Intersegment sales － － － － － － Total 27,814 30,976 31,797 90,589 82 90,672 Operating profit (loss) 9,180 1,097 1,813 12,091 (1,678) 10,413 Financial income 122 Financial costs 2,402 Profit (loss) before taxes 8,133 Other items Depreciation and Amortization 1,144 2,481 2,875 6,500 191 6,691 Impairment losses (reversal of impairment losses) (28) － － (28) － (28) 2) Segment revenues and operating results Three months ended June 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. Three months ended June 30, 2026 (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. - 22 -
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(Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Other Total By region Japan 898 30,261 4,466 66 35,693 Europe 12,822 109 7,939 － 20,871 North America 5,318 7 12,618 － 17,943 Other 4,098 96 5,152 － 9,347 Total 23,137 30,474 30,177 66 83,856 (Unit: million yen) Diabetes Management Healthcare Solutions Diagnostic & Life Sciences Other Total By region Japan 935 30,650 4,261 82 35,930 Europe 16,355 28 8,269 － 24,653 North America 5,646 6 13,290 － 18,943 Other 4,877 289 5,977 － 11,144 Total 27,814 30,976 31,797 82 90,672 Revenue Disaggregation of revenue Revenue disaggregation by reportable segments and major regions is as follows. The Group has changed its composition of reportable segments (please refer to “Segment information”). Accordingly, the Group has restated revenue disaggregation by reportable segments and major regions previously reported for the three months ended June 30, 2025. Three months ended June 30, 2025 Three months ended June 30, 2026 - 23 -