Sysmex : Summary of Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2024

Summary of Consolidated Financial Results [ IFRS ]

for the First Three Months of the Fiscal Year Ending March 31, 2024

August 8, 2023

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Scheduled date for filing of quarterly report Scheduled date for dividend payment Preparation of supplementary material for quarterly earnings

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• Sysmex Corporation
• 6869
• Tokyo Stock Exchange
• www.sysmex.co.jp/en
• Kaoru Asano, President
• Takuro Minami, Executive Vice President of Corporate Business Administration
• 078(265)-0500
• August 10, 2023
• ―
• Yes
• Yes

(Unit: Millions of Yen)

1. Results for the First Three Months of the Fiscal Year Ending March 31, 2024

(1) Operating results

		(% changes as compared with the corresponding period of the previous fiscal year)
	Net Sales		Operating profit	Profit before tax	Profit
Three months	95,351	10.8%	13,277	20.1%	13,160	2.4%		8,561	7.1%
ended Jun. 30, 2023
Three months	86,029	8.4%	11,053	(25.3)%	12,847	(10.1)%		7,993	(18.1)%
ended Jun. 30, 2022
		Profit		Total		Basic earnings	Diluted earnings
		attributable to
		comprehensive
		owners of the	per share (Yen)	per share (Yen)
		income
		parent
Three months ended Jun. 30, 2023	8,621	7.4%	22,790	4.4%		41.20		41.17
Three months ended Jun. 30, 2022	8,030	(18.2)%	21,835	93.0%		38.38		38.37
(2) Financial condition
					Equity attributable	Equity attributable
	Total assets		Total equity	to owners of the	to owners of the
					parent			parent to total assets
As of Jun. 30, 2023		535,500		402,708			402,077			75.1%
As of Mar. 31, 2023		531,074		388,356			387,665			73.0%
2. Dividend
	Dividend per share
	First quarter	Second quarter Third quarter		Year-end		Annual
	(Yen)		(Yen)	(Yen)		(Yen)		(Yen)
Year ended Mar. 31, 2023	￣		40.00		￣		42.00	82.00
Year ending Mar. 31, 2024	￣
Year ending Mar. 31, 2024			42.00				42.00	84.00
(Forecast)					￣

Note: Revision of dividends forecast for this period: No

3. Financial Forecast for the Year Ending March 31, 2024

(% changes as compared with the corresponding period of the previous fiscal year)

	Net Sales		Operating profit	Profit before tax	Profit attributable to	Basic earnings
		owners of the parent	per share (Yen)
Six months
ending Sep.	220,000	13.4%	40,000	20.7%	38,000	10.0%	26,000	8.4%	124.24
30, 2023
Year ending	460,000	12.1%	83,000	12.7%	78,000	13.5%	52,000	13.6%	248.46
Mar. 31, 2024

Note: Revision of financial forecast for this period: No

4. Other Information

1. Changes in significant consolidated subsidiaries (which resulted in changes in scope of consolidation): No
2. Changes in accounting policies and accounting estimates
3. 1. Changes in accounting policies required by IFRS: No
   2. Other changes in accounting policies: No
   3. Changes in accounting estimates: No
4. Number of outstanding stock (common stock)
5. 1. Number of outstanding stock at the end of each fiscal period (including treasury stock): 209,741,942 shares as of Jun. 30, 2023; 209,693,992 shares as of Mar. 31, 2023
   2. Number of treasury stock at the end of each fiscal period:

447,556 shares as of Jun. 30, 2023; 447,492 shares as of Mar. 31, 2023

1. Average number of outstanding stock for each period (cumulative): 209,266,869 shares for the three months ended Jun. 30, 2023 209,214,577 shares for the three months ended Jun. 30, 2022

Note: Quarterly summaries of financial results are excluded from quarterly reviews.

• Explanation regarding the appropriate use of financial forecast and other information
• 1. Basic earnings per share have been revised from the figures indicated in the consolidated financial forecast announced on May 11, 2023, in accordance with changes in the number of shares of outstanding stock and treasury stock. No other figures in the financial forecast have been revised.
  2. The forecasts and future projections contained herein have been prepared on the basis of rational decisions given the information available as of the date of announcement of this document. These forecasts do not represent a commitment by the Company, and actual performance may differ substantially from forecasts for a variety of reasons. Please refer to "3) Consolidated financial forecast" within "1. Qualitative information on quarterly financial results" on page 5 of the attachment to this document for cautionary statements concerning the conditions and performance forecasts that serve as the basis for these forecasts.
  3. Supplementary financial materials (in Japanese and English) will be posted on the Sysmex website on Tuesday, August 8, 2023.

Content of Supplementary Materials
1. Qualitative information on quarterly financial results	2
1)	Operating performance analysis	2
2)	Financial conditions analysis	5
3)	Consolidated financial forecast	5
2. Condensed quarterly consolidated financial statements and notes	6
1)	Condensed quarterly consolidated statement of financial position	6
2)	Condensed quarterly consolidated statement of income	8
3)	Condensed quarterly consolidated statement of comprehensive income	9
4)	Condensed quarterly consolidated statement of changes in equity	10
5)	Condensed quarterly consolidated statement of cash flows	11
6)	Notes to the condensed quarterly consolidated financial statements	12
	1. Notes related to the going concern assumption	12
	2. Segment information	12

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1. Qualitative information on quarterly financial results

1. Operating performance analysis

Future-related information contained in the text below is based on the judgement as of the end of

the fiscal period under review.

In the first quarter of the fiscal year ending March 31, 2024, the Japanese economy was characterized by a tone of gradual ongoing recovery, as economic activity normalized. However, the outlook remains uncertain due to continued high resource and energy prices, rapid exchange rate fluctuations, and other factors. Overseas, US and European economies have begun to decelerate, owing to the impacts of high commodities prices and tighter financial policies. The Chinese economy is rebounding, owing the lifting of the government's zero-COVID policy, but sluggish internal demand and lackluster exports continue to cloud the outlook.

On the healthcare front, in Japan demand is rising in the medical and healthcare fields against the backdrop of an aging population and diversifying health and medical needs. The Japanese Government has positioned 'next-generation healthcare' as one of its growth strategies, and these fields are expected to remain active. Looking overseas, aging populations in developed countries and economic growth in emerging markets are causing healthcare demand to increase and prompting higher levels of healthcare quality and service enhancements. At the same time, rapid advances in the application of artificial intelligence, information and communications technology, and other leading-edge technologies to the healthcare sector are expected to continue providing opportunities for growth.

Under these circumstances, Sysmex launched the Clinical Flow Cytometry*1 System, which comprises the Flow Cytometer XF-1600 and the Sample Preparation System PS-10, as well as antibody reagents, and other related products in Japan, following its launch in overseas markets. The system makes it possible for laboratories to automate the entire testing process, from sample preparation to the reporting of measurement results in clinical FCM testing. This achieves higher efficiency and standardization of testing and reduces the burden placed on clinical technologists, allowing them to focus on the more technically demanding analysis of testing results. Going forward, Sysmex will continue to further expand markets to provide its Clinical Flow Cytometry System, aiming to maximize a synergy with the hematology field.

In the immunochemistry field, in Japan Sysmex began selling an assay kit to identify amyloid beta (Aβ) accumulation in the brain, a cause of Alzheimer's disease, using a small amount of blood. The products assist in identifying the level of accumulation of Aβ in the brain by measuring the ratio of Aβ peptides (the 1-42 and 1-40 peptides) in the blood using Sysmex's HISCL™-Series, which employs chemiluminescence enzyme immunoassay (CLEIA) as its measurement principle. To expand the opportunities for patients to receive this testing, we plan to promote cooperation with related academies and key opinion leaders (KOLs) toward listing in diagnostic guidelines and its coverage by Japanese national health insurance.

In the urinalysis field, we launched a testing system in Europe for rapid detection of antimicrobial susceptibility. The system detects the presence or absence of bacteria and assesses the effectiveness of antimicrobials using urine samples from patients suspected of having urinary tract infections (UTIs) *2. Using a unique and proprietary microfluidic technology*3, the system delivers antimicrobial susceptibility testing (AST) *4 results in as little as 30 minutes from the start of measurement, a significant reduction compared to the several days required for conventional AST. The system not only promotes proper use of antimicrobial drugs in primary care settings, which are often the first point of contact for patients, but also contributes to the fight against antimicrobial resistance (AMR) *5, a global challenge that requires concerted action.

In the life science field, we obtained manufacturing and marketing approval in Japan for our PrismGuide™ IRD Panel System, which obtains information about the causative genes of inherited retinal dystrophy (IRD) *6. Its approval marks Japan's first gene panel testing*7 system for IRD. The system is intended for use in obtaining comprehensive genome profiles*8 from the blood of the patients diagnosed or suspected of having IRD to identify 82 types of genes causing IRD Then, based on the analysis results obtained via the system, combined with subjective symptoms, clinical symptoms, and other relevant test results, each IRD patient's causative gene is comprehensively determined by an expert panel*9 at a medical institution that meets the requirements stipulated by relevant academic associations. If a treatment plan is determined based on an identified causative gene, a support plan for low vision care*10 is mapped out, and genetic counseling*11 is provided; the quality of life of patients and their families will be enhanced significantly, as they may be able to not only start to receive appropriate treatment as soon as possible, but also prepare themselves for life events such as entering school or employment,

In the medical robotics business, as the global general distributor Sysmex continued to market hinotori™ Surgical Robot System, a made-in-Japanrobotic-assisted surgery system, to medical

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institutions in Japan. Based on the market launch in Japan, we are moving forward in putting together regulatory affairs and sales systems in preparation to enter overseas markets. On April 28, 2023, Medicaroid Corporation, a joint venture between Sysmex and Kawasaki Heavy Industry, Ltd. applied for regulatory approval with Singapore's Health Sciences Authority. Going forward, we will continue to promote Medicaroid's ongoing regulatory filing activities overseas, with the aim of gradually introducing products in overseas markets.

*1 Flow cytometry (FCM):

Method involving the flow dispersion of minute particles and the use of lasers to optically analyze minute flows. Used primarily to observe individual cells.

*2 Urinary tract infections (UTIs):

UTIs are caused by bacteria that proliferate in the urinary tract, spanning from the kidneys to the urinary outlet, resulting in inflammation. These infections can lead to cystitis in the bladder and pyelonephritis in the kidneys. They are among the most commonly encountered bacterial infections in daily clinical practice, with approximately 60% of women experiencing this at least once in their lifetime.

*3 Microfluidic technology:

Sysmex Astrego's unique and proprietary technology involves creating microchannels at the micrometer or nanometer level, which allows in dividual bacteria from a fluid sample to be captured and cultured unidirectionally within these microchannels, enabling rapid detection of antimicrobial susceptibility.

*4 Antimicrobial Susceptibility Testing (AST):

This test examines the effectiveness of various antimicrobials against bacteria detected in samples.

*5 Antimicrobial Resistance (AMR):

This phenomenon occurs when living organisms develop a resistance to a drug, whose efficacy is decreased or neutralized as a result. Bacteria that have developed microbial resistance are known as antimicrobial-resistant bacteria.

*6 Inherited Retinal Dystrophy (IRD):

A hereditary progressive disease presumed to be caused by a gene mutation. Several diseases that present similar symptoms are collectively referred to as IRD. Its main symptoms include night blindness (difficulty seeing in dim light), tunnel vision (a narrowing field of vision), and progressive loss of vision, which can lead to a complete loss of vision in severe cases. It is estimated that one out of every 4,000 to 8,000 people develops a Retinitis Pigmentosa (a designated intractable disease in Japan), the most common IRD subtype.

*7 Gene panel testing:

A testing method for simultaneously detecting mutations of several related genes.

*8 Comprehensive genome profiles:

Information obtained by simultaneously analyzing mutations of multiple genes of significance to diagnosis.

*9 Expert panel:

A body at a medical institution that meets the requirements stipulated by relevant academic associations. It is composed of experts in diverse fields, including those involved in IRD (ophthalmologists), genetic medicine (clinical geneticists), and molecular genetics and genome medicine. Panel members discuss and make proposals concerning the significance of the results of gene panel test results, treatment methods, and low vision care policies.

*10 Low vision care:

A generic term for support to those who experience any difficulties in their daily lives due to vision problems, meaning a wide range of support types, from medical to educational, vocational, social, welfare, and psychological care.

*11 Genetic counseling:

According to the Japan Medical Association, genetic counseling is a process that helps people adapt to diseases involving genes based on an understanding of their medical, psychological, and familial implications. Such counseling is provided to promote informed choices (knowledge-based decision making) for, and adaption to, relevant risks and conditions.

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