TOKYO, JAPAN - Nihon Kohden announced today that the Company is on track to reaching the targeted production capacity expansion at the Tomioka Production Center (Tomioka City, Gunma Prefecture). As already announced, the Nihon Kohden Group is establishing a framework for increasing production of ventilators and patient monitors to meet increased demand due to the COVID-19 outbreak, based on the request from the Japanese government.

For increasing production, the TPS (Toyota Production System) Support Team has given their help us in improving productivity, such as improvement of the production process by utilizing TPS’s expertise. The TPS Support Team consists of three companies: Toyota Motor Corporation (Head Office: Toyota City, Aichi Prefecture, President and Representative Director: Akio Toyota), DENSO CORPORATION (Head Office: Kariya City, Aichi Prefecture, President and Representative Director: Koji Arima), and TOKAI RIKA CO., LTD. (Head Office: Niwa-gun, Aichi Prefecture, President and Representative Director: Hiroyoshi Ninoyu). Following dispatch by the TPS Support Team of nine staff from late April to mid-July to provide advice and guidance in improving the production process, Nihon Kohden was able to significantly improve its productivity. Furthermore, Toyota Motor has supported us with assistance in parts procurement. Nihon Kohden will continue to improve the productivity of the entire Tomioka Production Center by deploying the know-how gained from this support to other production items.

The Nihon Kohden Group is increasing production with the cooperation of partners such as the TPS Support Team, and automobile and electronics manufacturers. We would like to thank all partners for their generous support such as supply of parts, production of devices, and advice for improving productivity.

At the Nihon Kohden Group, we are focused on contributing to ending the COVID-19 pandemic with our medical products, and are committed to aiding healthcare professionals in fighting this pandemic and providing assistance to patients suffering from COVID-19.

The impact of this matter on business performance is expected to be minor, with no changes to the consolidated forecasts for FY2020.