Japan Lifeline : Notice of Earnings and Dividend Forecast

August 5, 2020

To whom it may concern,

Company: Japan Lifeline Co., Ltd.

Representative: Keisuke Suzuki, President and CEO (Code: 7575 TSE 1st Section)

Contact person: Kenji Yamada, Senior Vice President, Corporate Administration Headquarters (TEL. [phone])

Notice of Earnings and Dividend Forecast

Japan Lifeline Co., Ltd. ("the Company") announced today that it has made the following earnings forecast for the fiscal year ending in March 31, 2021 and dividend forecast, both of which were left undecided in the Summary Report of Consolidated Financial Results for the Year Ended March 31, 2020, disclosed on May 12, 2020.

1. Earnings Forecast

1. Consolidatd earnings forecast
2. • Consolidated earnings forecast for the six months ending in September 2020 (April 1, 2020 to September 30, 2020)

				Quarterly
	Net Sales	Operating	Ordinary	Profit	Earnings Per
	attributable
	Profit	Profit	Share
		to owners of
				parent
Previously announced	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Yen
forecast (A)	―	―	―	―	―
Announced forecast (B)	24,454	4,078	3,779	2,574	32.07
Change (B-A)	―	―	―	―
Rate of changes %	―	―	―	―
(Ref.) Results for the previous
fiscal year (for the six months	24,173	4,851	4,841	3,555	44.29
ended in September 2019)

• Consolidated earnings forecast for the year ending in March 2021 (April 1, 2020 to March 31, 2021)

		Operating	Ordinary	Profit	Earnings Per
	Net Sales	attributable
	Profit	Profit	to owners of	Share
				parent
Previously announced	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Yen
forecast (A)	―	―	―	―	―
Announced forecast (B)	53,226	10,001	9,882	6,827	85.04
Change (B-A)	―	―	―	―
Rate of changes %	―	―	―	―
(Ref.) Results for the previous
fiscal year ended March 2020	51,761	10,434	10,425	7,748	96.55

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1. Non-consolidatedearnings forecast
2. • Non-consolidatedearnings forecast for the six months ending in September 2020 (April 1, 2020 to September 30, 2020)

	Net Sales	Ordinary Profit	Quarterly	Earnings
	Net Profit	Per Share
Previously announced forecast (A)	Millions of yen	Millions of yen	Millions of yen	Yen
―	―	―	―
Announced forecast (B)	24,492	3,932	2,729	34.01
Change (B-A)	―	―	―
Rate of changes %	―	―	―
(Ref.) Results for the previous
fiscal year (for the six months	24,142	4,896	3,610	44.97
ended in September 2019)

• Non-consolidatedearnings forecast for the six months ending in March 2021 (April 1, 2020 to March 31, 2021)

	Net Sales	Ordinary Profit	Net Profit	Earnings
	Per Share
Previously announced forecast (A)	Millions of yen	Millions of yen	Millions of yen	Yen
―	―	―	―
Announced forecast (B)	53,252	10,051	7,009	87.32
Change (B-A)	―	―	―
Rate of changes %	―	―	―
(Ref.) Results for the previous
fiscal year ended March 2020	51,700	10,466	8,078	100.67

1. Reasons for the earnings forecasts
   Regarding the consolidated earnings forecast for the fiscal year ending in March 2021, it was left undecided because it was difficult to reasonably calculate the impact on performance of the spreading infection of the COVID-19 as of May this year. Subsequently, in Japan, economic activities have begun to resume gradually after the cancellation of the declaration of a state of emergency. Having seen such recent economic trends, the Company estimated consolidated earnings forecasts based on information and forecasts available at the present time.
   In the first quarter of the fiscal year ending in March 2021, sales decreased due to a decrease in the number of cases. However, as the number of cases has been recovering since June, the Company assumes that it will be in the recovering state, although some effects remain toward the end of the second quarter. The impact on sales from the third quarter onwards is expected to be limited.
   In terms of profits, very recent expenses have generally decreased compared with the same period of the previous fiscal year. The Company intends to curb selling, general and administrative expenses from the second quarter onwards, however, due to the impact of the increase in expenses associated with the change of business partners in respect of Cardiac Rhythmn Management-related products, the Company expects operating profit, ordinary profit, and net profit for this fiscal year to decrease compared with the previous fiscal year.

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2.	Dividend Forecast
(1)	Dividend forecast
			Cash dividends per share
		1Q End	2Q End	3Q End	Year-End	Total
	Previously announced	Yen	Yen	Yen	Yen	Yen
	―	―	―	―	―
	Forecast
	Announced forecast	―	0.00	―	29.00	29.00
	(Ref.) Results for the
	previous fiscal year	―	0.00	―	29.00	29.00
	ended March 2020

1. Reasons for the dividend forecast
   The Company's basic policy for shareholder return is to maintain stable dividends while securing the necessary internal reserves. In deciding a specific measure, the Company takes into consideration recent business performance and demands for funds for future business development in order to implement appropriate measures to return profits to shareholders. Although the Company had not yet announced the dividend forecast as well as earnings forecast for the fiscal year ending in March 31, 2021 as of May this year, the Company now plans to pay a year-end dividend of 29.00 yen per share according to the above- mentioned policy, the same as in the previous fiscal year.
   (NOTE) The above forecast figures may vary due to a possible impact by the further spread of the COVID- 19 and various other factors.

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