In regard to the business environment surrounding the JMS Group, for the domestic market, as a result of progress in COVID-19 countermeasures such as vaccination, showing a recovery trend in refraining from doctor visits and postponing non-essential surgeries and procedures. In addition, JMS captured new customers for Closed Drug Mixing/Infusion System “NEO SHIELD” and Nutrition System using the opportunity for switching to ISO standards and accepted transfer of the acute blood purification business. Based on these circumstances, net sales in the domestic market expanded. Meanwhile, in overseas markets, although the situation varies depending on the country and region, sales decreased due to the continued stagnation of demand for products affected by COVID-19. The external environment remains extremely severe due to soaring purchase prices of raw materials in connection with rising crude oil prices, difficulties in procurement of semiconductors and other materials, and soaring ocean freight rates against the backdrop of the global shortage of containers, as well as impact of the situation in Russia and the Ukraine. Even under these circumstances, the trend in medical equipment market is expected to continue to show stable growth against the background of the global advance of aging, rising expectations for highly advanced medical care in Europe and the United States, and increasing demand associated with the development of medical infrastructure in emerging countries including China. Especially, it is expected that the demand for medical equipment using digital technologies in order to relieve resource shortages in medical institutions under the COVID-19 situation will increase.

JMS strives to improve the quality of corporate management and the corporate value, in order ' To be a bridge for the people who give and seek medical care, and to bring a smile to people by contributing to a healthy and better life' under our Founding Spirit of 'For People’s Precious Life'. JMS focused on four fields of business activities such as infusion & enteral nutrition, dialysis, cardiovascular and blood transfusion and promotes product development, production and sales.

As a result of the above, JMS recorded consolidated net sales of 58,169 million yen in this period, up by 1.0% / 590 million yen (year-over-year), due in part to an increase in yen equivalent value resulting from yen depreciation. Impact of the appreciation of local currencies in overseas production bases, soaring purchase prices of raw materials and ocean freight rates in worldwide resulted in an operating profit of 980 million yen, down by 53.9% (year-overyear). Due to the increase in subsidy incomes, despite a decrease in equity in earnings of affiliates, an ordinary income was 1,126 million yen, down by 44.1% (year-over-year). Because subsidy income of extraordinary income was recorded in the previous fiscal year, the profit attributable to owners of parent totaled 826 million yen, down by 52.4% (year-over-year).

The application of the accounting standard for revenue recognition, etc. decreased net sales, gross profit, selling, general and administrative expenses by 261 million yen respectively in the consolidated fiscal year, but there is no impact on operating income, ordinary income and Profit before income taxes.

As a manufacturer of medical devices, we are committed to making further contributions to settling COVID-19 as soon as possible by strengthening our supply system of products to meet market needs.

June 2022