Japan Lifeline : OTHER MATTERS SUBJECT TO MEASURES FOR ELECTRONIC PROVISION OF THE 43RD ORDINARY GENERAL MEETING OF SHAREHOLDERS(166KB)

These documents have been translated from Japanese originals for reference purposes only.

In the event of any discrepancy between these translated documents and the Japanese originals, the originals shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translations.

OTHER MATTERS SUBJECT TO MEASURES FOR ELECTRONIC PROVISION OF

THE 43RD ORDINARY GENERAL MEETING OF SHAREHOLDERS

(Matters Excluded From the Paper-Based Documents Delivered Upon Request)

Consolidated Statement of Changes in Equity

Notes to Consolidated Financial Statements

Non-Consolidated Statement of Changes in Equity

Notes to Non-Consolidated Financial Statements

(April 1, 2022 - March 31, 2023)

Japan Lifeline Co., Ltd.

(Securities Code: 7575)

In accordance with the provisions of laws and regulations and Article 16 of the Company's Articles of Incorporation, the above items are excluded from the paper-based documents delivered to shareholders who have made a request for delivery of such documents.

Note that, for this general meeting of shareholders, paper-based documents stating items for which measures for providing information in electronic format are to be taken, excluding the above items, will be delivered to all shareholders regardless of whether they have made a request for delivery of such documents.

- 1 -

Consolidated Statement of Changes in Equity

(April 1, 2022 - March 31, 2023)

									(Millions of yen)
					Shareholders' equity
									Total
		Share capital	Capital surplus		Retained earnings		Treasury stock	shareholders'
									equity
Balance at beginning of period	2,115		14,853	38,890		(1,496)	54,362
Changes during period
Dividends of surplus				(3,041)			(3,041)
Purchase of treasury stock							(1,948)	(1,948)
Cancellation of treasury stock			(1,079)				1,079	-
Profit attributable to owners of				6,891			6,891
parent
Net changes in items other than
shareholders' equity
Total changes during period	-	(1,079)	3,850		(868)	1,902
Balance at end of period	2,115		13,774	42,741		(2,365)	56,265
									(Millions of yen)
		Accumulated other comprehensive income
		Net unrealized		Foreign currency		Remeasurements of	Total accumulated	Total net assets
		holding gains or		translation		defined benefit	other comprehensive
		losses on securities		adjustment		plans	income
Balance at beginning of period		(6)		237		(26)		205	54,567
Changes during period
Dividends of surplus									(3,041)
Purchase of treasury stock									(1,984)
Cancellation of treasury stock									-
Profit attributable to owners of									6,891
parent
Net changes in items other than		(306)		62		(30)		(274)	(274)
shareholders' equity
Total changes during period		(306)		62		(30)		(274)	1,628
Balance at end of period		(312)		299		(56)		(69)	56,195

(Note) Figures presented in the financial statements are rounded down to the nearest million yen.

- 2 -

Notes to Consolidated Financial Statements

[Notes on Significant Matters Forming the Basis for Preparation of Consolidated Financial Statements]

1. Matters regarding the scope of consolidation
(1) Number of consolidated subsidiaries	1
Names of consolidated subsidiaries
JLL Malaysia Sdn. Bhd.

JLL Shenzhen Co., Ltd. was excluded from the scope of consolidation in the fiscal year under review, because the Company entered into an agreement to transfer all the equity interests held by the Company as of March 31, 2023, and the transfer procedures were completed. In addition, Synexmed (Hong Kong) Limited was excluded from the scope of consolidation in the fiscal year under review due to the completion of its liquidation procedures.

1. 1. Major non-consolidated subsidiaries
      There are no non-consolidated subsidiaries of note.
2. Matters regarding the scope of the equity method
   Name of non-consolidated subsidiaries excluded from the scope of the equity method JLL Korea Co., Ltd.
   Reason for exclusion from the scope of the equity method
   The non-consolidated subsidiaries to which the equity method is not applied are excluded because net profit or loss and retained earnings (both corresponding to equity interest) are both of small scale, and their material significance is too limited to have any substantial impact on the consolidated financial statements.
3. Matters regarding the fiscal years of consolidated subsidiaries, etc.
   JLL Malaysia Sdn. Bhd., a consolidated subsidiary, has a balance sheet date of December 31, and as the difference with the consolidated balance sheet date does not exceed three months, financial statements pertaining to the fiscal years of this consolidated subsidiary are used.
   Furthermore, necessary adjustments are made in consolidated financial statements for material transactions occurring between these subsidiaries' balance sheet dates and the consolidated balance sheet date.
4. Matters concerning accounting policies
5. 1. Standards and methods for valuation of securities Available-for-sale securities
   2. 1. Securities other than shares with no market price etc.
         Stated at fair value using the market price, etc., on the final day of the fiscal year. The total amount of the valuation difference calculated as a result is reported as a component of net assets, based on the reversal method. Furthermore, the valuation method used for the calculation of the cost of sales is the moving average method.
      2. Shares with no market price, etc.
         Stated at cost using the moving average method.

- 3 -

1. Methods for valuation of inventories are as follows.
   Stated at cost using the moving average method (book values are calculated by writing down based on declines in profitability).
2. The depreciation or amortization methods for fixed assets are as follows.

1. Property, plant and equipment

1. Property, plant and equipment (excluding leased assets)
   For the Company, the straight-line method is applied for buildings, except for facilities attached to buildings, acquired on or after April 1, 1998, and for facilities attached to buildings and structures acquired on or after April 1, 2016. The declining-balance method is used for other property, plant and equipment (excluding leased assets) of the Company. Overseas consolidated subsidiaries are subject to the straight-line method.

Major useful lives are as follows:
Buildings and structures	3 to 50 years
Machinery, equipment and vehicles	3 to 15 years

1. Leased assets
   Finance leases that are not deemed to transfer the ownership of the leased assets to the lessee
   The straight-line method with no residual value is applied, regarding the lease term as the useful life.

1. Intangible assets
   Software, etc. for internal use is amortized on a straight-line basis over the estimated useful life (five years), etc.
2. Long-termprepaid expenses
   Amortized on a straight-line basis over the contract period, etc.

1. The methods of reporting for reserves are as follows.

1. Allowance for doubtful accounts
   As provisions for losses on receivables, loans and other credits, allowances for doubtful accounts are reported based on the following standards.

1. Ordinary receivables
   Reported based on the historical write-off rate.
2. Receivables for doubtful accounts and distressed receivables
   Reported using the estimated amount of irrecoverable debt based on the recoverability of individual cases.

1. Provision for bonuses
   To provide for the payment of bonuses to employees, the estimated amount to be borne in the fiscal year under review is posted.
2. Provision for bonuses for directors (and other officers)
   A reserve for bonuses to directors and other officers is reported based on the estimated amount at the end of the fiscal year under review.
3. Provision for directors' share-based compensation
   To provide for granting of Company shares by the Board Incentive Plan (BIP) trust, a sum is reported that is the anticipated cost of payment for shares corresponding to points allocated to directors, based on the regulations for granting of shares.

- 4 -

1. Accounting policy for revenues and expenses
   The Group handles merchandise or products in four product categories, namely Cardiac Rhythm Management, EP/Ablation, Cardiovascular Surgery and Gastrointestinal/PI (hereinafter, such merchandise and products are referred to as "products"), and main businesses of the Group are manufacture and sale of products. Sales forms in the four product categories are the following three forms, and consignment sales account for 90% or more of the total.

1. Consignment sales
   The major sales method is consignment sales in which products are stored at agencies or hospitals and sold by the Company to hospitals via agencies at the time of surgery. Because the Company has judged that a customer obtains control of a product and performance obligations are satisfied at the time of using the product, revenue is recognized at the time of using the product.
2. Sales of the products held by the Company
   As for sales of the products held by the Company, since a period from shipment to acceptance inspection by customers is short in sales to domestic customers, the Company recognizes revenue by receiving an order sheet from agencies and shipping products. When a period from shipment to the time when control of the product is transferred to a customer is a normal term, revenue is recognized at the time of shipment of the product as a transaction in which the customer obtains control of the product and performance obligations are satisfied at a point in time, which is the time of transfer of the product.
3. Other sales
   Other sales are mainly for rental of medical devices, maintenance, repair, etc. Based on contracts, for performance obligations that are satisfied at a point in time, revenue is recognized at the time of provision. On the other hand, for performance obligations that are satisfied by providing services, etc. over a certain period of time stipulated in contracts, revenue is principally recognized according to the elapsed period.
   For consignment sales and sales of the products held by the Company, the Company has obligations to allow discounts, rebates, sales returns, etc. depending on terms and conditions of a contract. In this case, the transaction price is determined at the amount calculated by deducting the amount of the discounts, rebates, sales returns, etc. from consideration promised under contracts with customers.
   In any transaction, consideration is received within one year after performance obligations are satisfied, and does not contain any significant financial component.

1. Accounting treatment of retirement benefits

1. Method of attributing the estimated benefit obligation to periods
   When calculating the retirement benefit obligation, the estimated benefit obligation is attributed to the period up until the end of the fiscal year under review on a straight-line basis.
2. Amortization method of actuarial calculation differences and past service costs
   Past service costs are amortized and treated as expenses using the straight-line method for a certain number of years (five years) during the average remaining service period for employees when they occur.
   Actuarial calculation differences are amortized using the straight-line method for a certain number of years (five years) during the average remaining service period for employees in each fiscal year when they occur, and the amounts allocated are treated as expenses from the fiscal year following the year in which they occur.

- 5 -