We would like to thank our shareholders for their continued support.

In Japan, sales of Closed Drug Mixing/Infusion Systems and Infusion Sets with Needleless Access Port remained strong, while sales of Medical Gloves and Nutrition Products declined. In overseas markets, sales of Apheresis Kits and Blood Bags were strong, although conditions varied by country and region.

As a result, net sales increased 1,551 million yen to 65,292 million yen (up 2.4% from the previous consolidated fiscal year), due in part to the increase in yen value resulting from the weaker yen.

Despite the effect of sales increase, operating loss was 268 million yen (operating profit of 724 million yen in the previous consolidated fiscal year) due to soaring raw material and electricity costs, an increase in labor costs in preparation for increased demand, and an increase in Research and development expenses, as well as a write-down and loss on disposal of inventories. Ordinary profit amounted to 145 million yen (down 75.1% from the previous consolidated fiscal year), mainly due to the recording of equity in earnings of affiliates and subsidies. After income taxes, the net loss attributable to owners of the parent was 36 million yen (Profit attributable to owners of parent was 281 million yen for the previous consolidated fiscal year).

The year-end dividend will be 8.5 yen per share in accordance with the Company's basic policy on profit distribution. Combined with the interim dividend (8.5 yen per share), the annual dividend will be 17 yen per share.

I would like to reiterate to our shareholders our deepest gratitude for your past support. Under the theme of "Change and Challenge to Create the Future," we have formulated our Medium-term Management Plan 2027, which covers the three-year period from FY2024 to FY2027 (the period from the fiscal year ending March 31, 2025 to the fiscal year ending March 31, 2027). We will not only improve profitability in the short term, but also enhance our corporate value over the medium to long term by responding to various demands of society, transforming ourselves into a company with long-term durability, and taking on the challenge of creating a sustainable society in cooperation with our stakeholders.

We look forward to your continued support and cooperation.

June 2024