Expansion of the North American Business and Development of the Overseas Trading Business

「Through WOMA, our group will work to expand sales of artificial joint products in the Chinese market and continue strengthening its business foundation there.」

「In the U.S. artificial knee market, delivery delays continued for certain components of the Balanced Knee System - Revision artificial knee revision products manufactured by external contractors, constraining product supplies. As a result, the number of cases won declined, and overall TKA sales decreased. In the artificial hip segment, meanwhile, the number of cases won remained firm as the new Trivicta Hip Stem was rolled out nationwide, resulting in higher THA sales.」

「Sales to external customers in the U.S. decreased by US$145 thousand, or 0.4%, year on year to US$35,802 thousand. After translation into yen, sales decreased by ¥228 million, or 4.2%, year on year to ¥5,247 million, reflecting the stronger yen.」

「In the U.S. artificial joint market, the number of TKA cases won for products such as the BKS TriMax and BKS Revision Knee increased as the customer base expanded, driving higher overall TKA sales. The number of cases won for the Alpine Hip Stem remained firm, but a slight decline in cases won for the Entrada Hip Stem left total sales of artificial hip products (THA and BHA) flat year on year. The new Trivicta Hip Stem, an artificial hip product with a triple-taper design, for which demand is growing in the U.S. artificial hip market, was launched on a limited-facility basis during the interim period. As a result, U.S. sales in this segment were US$35,851 thousand, up 5.4% year on year, and ¥5,461 million after translation into yen, up 13.6% year on year, reflecting the weaker yen.」

「In the United States, new customers developed the previous year contributed to growth, and the number of cases acquired for total knee arthroplasty products increased. As a result, sales to external customers in the United States rose to US$70.448 million, up US$4.118 million, or 6.2%, from the previous consolidated fiscal year, and to ¥10,173 million after translation into yen, up ¥1,222 million, or 13.7%, due to the weaker yen.」

「In the United States, new customers developed the previous year contributed to growth, and the number of cases acquired for total knee arthroplasty products increased. As a result, sales to external customers in the United States rose to US$52.205 million, up US$3.138 million, or 6.4%, year on year, and to ¥7,452 million after translation into yen, up ¥808 million, or 12.2%, due to the weaker yen.」

「In the United States, new customers developed the previous year contributed to growth, and the number of cases acquired for total knee arthroplasty products increased. As a result, sales to external customers in the United States rose to US$34 million, up US$2 million, or 8.9%, year on year, and to ¥4,823 million after translation into yen, up ¥638 million, or 15.3%, due to the weaker yen.」

「In the United States, new customers developed the previous year contributed to growth, and the number of cases acquired for total knee arthroplasty products increased. As a result, sales to external customers in the United States rose to US$16 million, up US$0.7 million, or 4.8%, year on year, and to ¥2,347 million after translation into yen, up ¥253 million, or 12.1%, due to the weaker yen.」

「In the United States, the supply chain issues that arose in the first half showed signs of improvement compared with the same quarter of the previous year. The Group gradually resumed supplying products to new customers whose supply had been suspended and expanded its customer base, while increasing the number of cases secured through various sales expansion initiatives for existing customers. As a result, sales to external customers in the United States increased 4.3% year on year in U.S. dollar terms and, after translation into yen, increased 26.8% to ¥6,644 million due to the weaker yen.」

「In the United States, the number of cases acquired increased year on year due to the contribution of the customer base, which had continued to expand from the previous year. As a result, sales to external customers increased 1.9% year on year in U.S. dollar terms and 23.3% after translation into yen due to the weaker yen, to ¥4,184 million.」

「In the United States, case volumes increased compared with the same quarter of the previous year, when case volumes had increased as sales activities recovered with the expansion of COVID-19 vaccinations. However, due in part to the decline in revenue per case, sales to external customers declined 1.6% year on year in U.S. dollar terms, while increased 15.4% after translation into yen due to the weaker yen, to ¥2,093 million.」

「In the United States, surgeries that had been scheduled were again postponed from the second quarter onward due to the resurgence of COVID-19. However, as a result of efforts including acquiring new customers, sales to external customers increased 17.8% year on year in U.S. dollar terms and 24.0% after translation into yen, to ¥5,239 million.」

「From the second quarter of the current consolidated fiscal year, the newly established Changzhou Waston Ortho Medical Appliance Co., Limited (常州華森奥斯欧医療機器有限公司 (Note)) has been included in the scope of application of the equity method.」

「In the United States, the social environment has been gradually returning to normal as COVID-19 vaccinations have expanded. As the Group's sales activities in the United States have also been returning to normal pre-pandemic levels, sales to external customers in the United States increased 76.2% year on year in U.S. dollar terms and 79.9% after translation into yen, to ¥1,814 million, recovering to the level of the same quarter two years earlier, before the pandemic.」

「At an extraordinary meeting of the Board of Directors held on 8 February 2021, the Company approved the execution by its U.S. subsidiary Ortho Development Corporation, hereinafter ODEV, of an agreement with Changzhou Waston Medical Appliance Co., Ltd. (常州華森医療器械有限公司 (Note)), hereinafter WASTON, for the establishment of a joint venture in the People's Republic of China, hereinafter China. The agreement was executed on 9 February 2021.」

「Sales to external customers in the United States declined 22.3% year on year in U.S. dollar terms and 24.0% after translation into yen, to ¥2,685 million.」

「As of 22 June 2020, U.S. subsidiary Ortho Development Corporation terminated its exclusive distribution partnership agreement in the People's Republic of China, referred to below as China, with China Pioneer Pharma Holdings Limited (中国先鋒医薬控股有限公司 (Note)), which was signed in June 2017, and entered into a new exclusive distribution partnership agreement in China with Changzhou Waston Medical Appliance Co., Ltd. (常州華森医療器械有限公司 (Note)).」

「In China, the policy is to focus on the total knee arthroplasty field, for which regulatory approval has already been obtained. In fiscal 2018, ODEV established a subsidiary in Shanghai and has continued to gather market information. Although progress has halted due to the U.S.-China trade war, it is considering various potential initiatives with prospective local partners. Regarding entry into the Australian market, a local subsidiary was established in Brisbane in May 2019. An application for regulatory approval has been submitted, and approval is pending. The Company plans to obtain regulatory approval and begin sales during the fiscal year ending March 2021.」

「In the United States, sales in the orthopaedic joint field remained firm. Sales to external customers increased 17.1% year on year in U.S. dollar terms and 15.3% after translation into yen, to ¥5,449 million. ② United States: Revenue was ¥7,933 million, up 10.9% year on year, and operating profit was ¥1,109 million, up 49.5%.」

「In the United States, sales in the orthopaedic joint field remained firm. Sales to external customers increased 20.3% year on year in U.S. dollar terms and 19.2% after translation into yen, to ¥3,531 million.」

「From the first quarter of the current consolidated fiscal year, the newly established Australian subsidiary Ortho Development Pty Ltd. has been included in the scope of consolidation, but it has had no impact on the segment.」

「In the United States, sales in the orthopaedic joint field performed steadily. Sales to external customers increased 25.7% year on year in U.S. dollar terms and 24.6% after translation into yen, to ¥4,727 million. ② United States: Revenue was ¥7,154 million, up 15.9% year on year, and operating profit was ¥742 million, down 4.7%.」

「In the United States, sales of orthopaedic joint products performed steadily. Sales to external customers increased 29.0% year on year in U.S. dollar terms and 27.4% after translation into yen, to ¥2,963 million.」

「In the United States, sales of orthopaedic joint products performed steadily. Sales to external customers increased 25.0% year on year in U.S. dollar terms and 21.8% after translation into yen, to ¥1,455 million.」

「In the United States, sales of orthopaedic joint products remained firm. Sales to external customers increased 8.9% year on year in U.S. dollar terms and, due to the weaker yen, 12.7% after translation into yen, to ¥3,795 million. ② United States: Revenue was ¥6,170 million, up 16.7% year on year, and operating profit was ¥778 million, up 44.6%.」

「In the United States, sales of orthopaedic joint products, including BKS TriMax, remained firm. Sales to external customers increased 2.2% year on year in U.S. dollar terms and 6.7% after translation into yen, to ¥2,325 million. ② United States: Revenue was ¥3,885 million, up 9.2% year on year, and operating profit was ¥453 million, up 20.2%.」

「On 29 June 2017, U.S. subsidiary Ortho Development Corporation entered into an exclusive distribution partnership agreement with China Pioneer Pharma Holdings Limited in the People's Republic of China.」

「In the United States, sales of orthopaedic joint products, including the Alpine Hip System, remained firm. Sales to external customers increased 17.0% year on year in U.S. dollar terms, but due to the stronger yen, increased 6.4% year on year to ¥4,566 million after translation into yen.」

「In the United States, sales of orthopaedic joint products, including the Alpine Hip System, remained firm. Sales to external customers increased 18.2% year on year in U.S. dollar terms, but due to the stronger yen, increased 5.2% year on year to ¥3,367 million after translation into yen.」

「In the United States, sales of orthopaedic joint products, including the new Alpine Hip System, remained firm. Sales to external customers increased 15.5% year on year in U.S. dollar terms, but due to the stronger yen, increased 1.4% year on year to ¥2,179 million after translation into yen.」

「In the United States, sales of orthopaedic joint products, including the new Alpine Hip System, remained firm, and sales to external customers increased to ¥1,102 million, up 4.3% year on year, or 15.5% in U.S. dollar terms.」

「We will continue to expand our North American business, centered on our orthopaedic business in North America. Outside North America, we will continue to pursue opportunities to export from our North American subsidiary, focusing on the Chinese and Australian markets.」