This document has been translated from the Japanese original for reference purpose only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

3649

Supplementary Information on
Q1FY2024 Quarterly Business Results Summary
FINDEX Inc.
May 14, 2024

🄫2024 FINDEX Inc.

Cautionary Statements

This material is provided for informational purposes only and does not constitute a solicitation of any action based on this material.
This document (including the business plan) has been prepared by the Company based on reliable information available at the time of preparation, but it contains
risks and uncertainties, and the Company assumes no responsibility for its accuracy or completeness. The Company assumes no responsibility for the accuracy orcompleteness of the information contained in this material, even if it is desirable to update or revise forecasts or plans.
The Company assumes no responsibility whatsoever for any losses that may arise from investment decisions based on the forecasts and target figures containedin this document.
The copyright of this material belongs to Findex Inc. No part of this report may be reproduced or distributed in any form or by any means without the prior written
permission of the Company.
In the graphs and tables of this document, some of the figures are rounded up or truncated for the purpose of adjusting fractional values.

🄫2024 FINDEX Inc.

Highlights on Financial Performance•

Achieved record-high sales and profit in Q1 due to strong performance in Medical
Business and Public Sector Business•

Both sales and profit were already factored into the initial forecast, and there are
no changes to the financial guidance•

The backlog of orders has stabilized at 82% compared to the same period last year,
returning to normal levels

YoY:199.0%•

Recruiting is steadily progressing as planned, total number of employees expected
to increase by 10 by the end of June 2024

Net sales•

The total number of users utilizing our medical solutions has surpassed 2,000•

Sales of our flagship product Claio are strong, the user retention rate remains high•Implemented a revision of product prices (average increase of 20%), which will bereflected in quotations starting from Q2•

1 new installation of municipal package and 3 installations of medical facility
packages in Q1•

Achieved the highest sales and profit due to installations to large organizations•

The total number of installations reached 36. There has been no termination ofcontract since the launch of the service.

•

The cumulative number of GAP shipments in Q1: 6 units within Japan andproduction completed for overseas shipping scheduled in Q2 or later•

Incurred a loss due to a decrease in sales YoY, as well as an increase in personnel
and salary expenses•

Reputation of GAP improved as the significant improvements in usability wereachieved through software updates

Net sales¥2,124 million
YoY:69.7%

Q1FY2024
Operating profit¥862 million¥1,996 million

Medical Business

Operating profit¥839 million

Net sales¥106 million

Public Sector Business

Operating profit¥53 million

Net sales¥22 million

Health Tech Business

Operating profit¥-30 million

🄫2024 FINDEX Inc.

3

Q1 FY2024
Financial Summary•

Significant increase in sales and profit YoY due to robust demand in Medical andPublic Sector Business•

Decline in profit in the Health Tech business is due to a decrease in sales volume,
coupled with increased staffing and salary raises（¥ Millions）

Q1FY2023

Q1FY2024

FY2024
Forecast

YoY

1,251

2,124

69.7%

5,782

1,179

1,996

69.3%

-

Public Sector Business

35

106

197.7%-

Health Tech Business36

22(40.1%)-

Cost of sales

537

782

45.8%

-

Gross profit

714

1,341

87.7%

-

57.1%

63.2%

-

-

SG&A

426

479

12.5%

-

Operating profit

288

862

199.0%

1,574

297

839

181.9%-

Public Sector Business

3

53

1,257.4％-

Health Tech Business

(13)

(30)

-

-

23.0%

40.6%

-

-

Recurring profit

292

865

196.2%

1,591

Profit attributable to owners of parent

199

642

222.4%

1,097

Net sales
Medical Business

Gross profit margin

Medical Business

Operating Profit Margin

🄫2024 FINDEX Inc.

4

Market Trends and Our
Financial Performance
The pandemic of COVID-19
Digitalization of Medical Claims
Adoption of Electronic Medical Record Systems

Initiatives to Standardize
Medical Information（¥ Millions）
6,000
Electronic Medical Record (EMR) Adoption
Rate at over-400-bed hospitals:91.2%

2022:Medical DX Reiwa Vision2030

Forecast
5,782

5,191
4,968

5,000
2018:The Next Generation Medical Infrastructure Act
Institutionalization of Telemedicine

4,541
4,281
4,004

4,000

April 2014: Consumption Tax Hike

3,311

3,288
2,863

3,000

2021:Establishment of the Digital Agency
Online Credential Verification Initiated

3,603

2,951
Oct 2019: Consumption Tax Hike

2,382
1,987
2,000

Dec 2024: Transition to My Number
insurance cards planned, current
insurance cards to be phased out

1,543

1,000
2023:Start of Electronic
Prescription Operation

0
2011

2012

2013

2014

2015

2016

2017

Q1
🄫2024 FINDEX Inc.

Q2

2018

Q3

Q4

2019

2020

2021

2022

2023

2024

Q1FY2024: Steadily proceeding to achieve
the yearly financial targets

5Sales Ratio by Segment

Q1FY2023

Q1FY2024

Public Sector
Business¥106 Million

Public Sector
Business¥35 Million

Health Tech Business¥36 Million¥2,125
Million¥1,251Million

MedicalBusiness¥1,179 Million

🄫2024 FINDEX Inc.

Health Tech Business¥22 Million

MedicalBusiness¥1,996 Million

6Balance Sheet••

No significant changes in the balance sheet
Equity ratio remains at a high level of 80.4%(¥ Millions)

FY2023

Q1FY2024

Changes

B/S
Cash and deposits

2,693

2,895

202

1,924

2,371

447

221

184

(36)

Raw materials and supplies

118

116

(1)

Other

50

38

(11)

5,006

5,607

600

Tangible assets

89

93

3

Intangible assets

290

295

5

Software

290

295

5

547

541

(6)

5,934

6,538

603

TOTAL CURRENT LIABILITIES

772

944

171

Non-current LIABILITIES

316

327

11

0

0

0

TOTAL LIABILITIES

1,088

1,272

183

NET ASSETS

4,845

5,266

420

Shareholders’ equity

4,844

5,256

411

TOTAL LIABILITIES and NET ASSETS

5,934

6,538

603

Notes and accounts receivable - tradeand contract assets
Merchandise and finished goods, work inprogress

TOTAL CURRENT ASSETS

Investments and other assets
TOTAL ASSETS(long-term and short-term interest-bearing liabilities)

🄫2024 FINDEX Inc.

• Deposits and cash increased to
JPY 2.9 bn with the cumulative
profits from the past
• Strategizing on effective uses ofcapital including M&A

7

FY2024- Factors Contributing•

Software implementations concentrated during the 3-day holiday in February

to Changes in Operating Profit•

The outsourcing expenses for large-scale projects related to data integration
decreased YoY, resulting in an improvement in gross profit(¥ Millions)

🄫2024 FINDEX Inc.

•

Selling and administrative expenses
are within controlled limits, but
personnel costs have increased due
to efforts in recruitment
strengthening and salary raises•

The favorable performance of
package sales, which involve
fewer customizations, has led to
an increase in gross profit margin(mainly Claio and DocuMaker)

8Medical Business 1/2•

Achieved record-high profits in Q1 due to strong demand, including the installations for
multiple large projects, all within our planned scope•

Demand was continuously high, as March marks the end of the fiscal year for public
hospitals in Japan•The total number of medical solution users
exceeded 2,000

Average Numbers of Soluions Installed
per Medical Facility

Net Sales andOperating Profit（¥ Million)

6.00

2,500

5.50
1,997

2,000

•

Consulting department steadily received orders•

The number of inquiries for our in-house brand,
to large hospitals, has increased. New functions

5.00
4.50

New product development projects are underway“PiCls”, which offers unique cloud-based solutions

4.61
1,615

•

4.33

4.30

are added

4.65

4.39

•

Ceased sales and support for low-profitability
products and optimized personnel allocation

4.00

1,500
1,179

1,168

3.50

973

1,000

3.00
2.50

500

2.00

2.86
2.41

2.19

2.96
2.49

2.22

3.06

2.53

2.34

3.10
2.67

3.18

•

Continued cross selling to existing customers•

A subsidiary Fitting Cloud Inc. completed the joint
R&D with Kyoto Uni. Hospital utilizing generative
AI to upgrade our medical documentation software.

2.68

Preparing for a product launch
2.40

Key Initiatives

2.37

•

Strengthen cloud-based services and its sales•

Discussions with Toyota Tsusho Corporation for

1.50
0
Q1

Q2

Q3

Q4

FY23/12Net sales

Q1
FY24/12

Operating profit

sales in India are focused on the product’s sales

1.00
2020

2021

Large hospitals
Small hospitals

2022

2023

2024Q1

Medium sized hospitals
Clinics

timing•Start issuing quotes at revised product prices,with revenue recognition possibly in the next
year depending on project size

🄫2024 FINDEX Inc.

9

Medical Business 2/2•

Sales of Claio series are performing well•

While the proportion of maintenance services has decreased relatively, the sales
amount has increased YoY

Changes in the Number of Medical Solutions Users(# of Facilities）
2,500
99.3%

1,757

Claio related products

100.0%
98.8%

99.4%

1,911

2,000

Medical Business - Composition of Sales by Products

MapleNote

98.3%
1,987

DocuMaker
C-Scan2,013

MoveBY

90.0%

1,823

1,500

REMORA

Claio and related
products
43.0%

Maintenance
13.4%

Radiology
Consulting

80.0%

Maintenance

39%

Consulting
3.2%
1,000

HardwareLicense
Other

70.0%

Fitting Cloud

500

60.0%

Trends in Distributor Sales（¥ Millions）

1,200
1,000
0

50.0%
2020

2021

2022

2023

2024 Q1

1,057
956

1,036

800
600

Large hospitals

Medium sized hospitals

Small hospitals

400

Clinics

OthersRetention Rate

200

*Calculation changed as categorization of large hospitals revised from 500 or more
beds to 400 or more beds following the revision of medical service fees in 2018.
*Consumers of one-time products are excluded.
🄫2024 FINDEX Inc.

308

333

Q1FY2023

Q1FY2024

0
2021

2022

2023

*Figures for the now-removed Public Sector Business is included up to FY2022.

10

Public Sector Business•

Achieved record-high sales, driven by implementations in large-scale facilities•

Order backlog is 1.4 times higher YoY, with several ongoing negotiations•

1 package installed for a municipality and 3
packages installed for hospitals during Q1

Net Sales andOperating Profit(¥ Millions)(¥ Million)
120

Breakdown of Net Sales•

Cancellation of the service is zero since the

120
106

service launch

100

•

80

100
75

progressing as well

40

•

20
55

60

Q2

36

Q3

Q4

FY24/12Monthly usage revenue

21

growth expected due to rising user numbers

Q1

FY23/12
Others•(# ofusers）Key Initiatives

Cumulative number of users•

30,000(20)

for further business expansion

20,000Q1Q2Q3

FY23/12Net sales

Q4

Q1
FY24/12

Operating profit

Strengthen recruitment and employee
trainings to enhance our internal resources

25,000(40)

Drive collaboration with other company's
solutions to enhance product value

20
0

The monthly fee has increased 1.2 times
compared to last year, with even greater

0
Q1

40

Number of ongoing projects are 9.
Negotiations for the projects in FY2025 are

60
80

Cumulative number of installations is 36.

15,000•

Advance in securing new distributors andenhance partnerships

10,000
5,000

•

0
2019

2020

2021

2022

2023

2024Q1

Aim to further expand our market reach bytargeting large-scale organizations,leveraging our record of implementation in
the prefectural office

🄫2024 FINDEX Inc.

11

Health Tech Business•

The change in sales strategy has yielded positive responses•

Production of the planned quantity of products, including those for overseas shipment,
is now complete

Domestic
Net Sales andOperating Profit(¥ Million)(Units)60

40

GAP/GAP-screener
Cumulative Numbers of Sales andDomestic Demonstrations•

6 units sold. Number of inquiries increased•

Resolved minor glitches through software
updates, enhancing user experience

200
180

37
27

22

20

•

Conducting additional studies with Kyoto
University. Posted an academic paper to a160

journal (currently in final review)
140

3

2

Overseas

120

0

•

100
(20)

ASEAN region

80

Key Initiatives

60

(40)

Initiated concrete discussions with medical
device distributors regarding sales in the

•

40
(60)

Drive R&D efforts towards theimplementation of contrast sensitivity

20
(80)
Q1

Q2

Q3

FY23/12Net sales

Q4

Q1
FY24/12

Operating profit

testing, a diagnostic tool for cataracts

0
Q1

Q2

Q3

Q4

FY2022# of demonstrations

Q1

Q2

Q3

FY2023Q4Q1
FY2024# of total units sold

*Only the numbers of demonstrations by Findex are aggregated•

GAP has been selected for a project by
AMED (Japan Agency for Medical Researchand Development), as it can be used todetect not only visual field abnormality, butalso MCI. Possibility of applying it to tests forother mental disorders and brain diseases

🄫2024 FINDEX Inc.

12

FY2024 - Forecast for
Financial Performanceand Dividends•

While Q1 progress rates are high, financial figures generally align within planned expectations•

Considering the increase in personnel expenses for long-term growth, profit margins are
expected to be limited for the full year（¥ Millions）

FY2023 Actual

FY2024 Forecast

Q1FY2024
Progress rate

YoY

Net sales

5,191

5,782

+11.4%

36.7％

Operating profit

1,496

1,574

+5.2%

54.8％

Recurring profit

1,527

1,591

+4.2%

54.4％

Profit attributable to owner of parent

1,059

1,097

+3.6%

58.6％

Interim dividend (yen）

4.00

7.00

-

-

Year-end dividend (yen)

9.00

8.00

-

-

Full-year dividend (yen)

13.00

15.00

-

-

Earning per share（Plan）

🄫2024 FINDEX Inc.

13

FY2024 Initiatives toAchieve Business Targets•

Achieve stable profit growth through improved productivity and strengthened sales capabilities•

Focus on investing in talent for long-term value enhancement and growth•

Explore M&A opportunities and implementing various strategies for business expansion

 Address the increase in personnel expenses• Active recruitment and employment retention• Accelerate the deployment of cloud-based solutions to large hospitals

Medical Business Execute an appropriate price revisions
 Promote cross-selling strategy• Full-scale expansion of Claio overseas sales• Expand medical information consulting services to other industries• Further secure talent for business expansion• Build relationships with agents and partners to pioneer mid-sized projects in earnest

Public Sector Business• Strengthen collaboration with other company's’ software• Enhance support infrastructure with the increase in the number of customers
 Accumulate expertise through implementation in large-scale facilities
 Enhance product features with a user-oriented approach•

Improve awareness and understanding of the product, as well as the necessity to explore
accelerators

 Add intuitive interfaces and guided features for healthcare staffs’ ease of use

Health Tech Business• Add new testing features to the product and commence clinical trials• Rebuild the sales structure, including training for sales representatives at distributors• Execute initiatives to start sales in India and ASEAN countries• Publish a research paper in academic journals

🄫2024 FINDEX Inc.

14

FY2024
HR Planning and Strategy•

Anticipate an increase of total per capita personnel expenses around 6.0% by two years•

Aim to reduce opportunity costs and expand our business scale and capacity by investing in talent(¥ Millions）• Plan to increase workforce by approximately 20 employees

Strengthening
recruitment• Prioritize work-life balance with enhanced corporate benefits such as
refreshment leave and sabbatical leave• Actively recruit outside major cities• Promote childcare leave and reduced working hours system for bothmale and female employees with children, to create an employeeoriented environment• Upgrade our work environment through the promotion of in-housedeveloped software for internal digitalization

Improvement in
employee retention
rate• Expand the scope of the certification incentive program and encourage
upskilling

8.0

6,000

7.0
6.0
5.0

4,000
4.0
3,000
3.0
2,000

2.0

1,000

1.0

0

0.0

• Implement measures to enhance employee engagement• Execute further base salary increases

🄫2024 FINDEX Inc.

7,000

5,000

• Utilize a full remote work structure targeting employees residing in
distant areas

Diversification ofworkstyles(¥ Millions）

Sales
Per Capita Personnel Expenses

Rate of average salary increasefor permanent employees

Sales per capita

FY2021→FY2022:3.0%

FY2020 :¥13,834 thousand

FY2022→FY2023:3.6%

FY2023 :¥16,966 thousand

15

Changes in Numbers of
Employees

Employees composition ratio

Changes in Numbers of Employees(# of Employee)
350
300
250

230
210

12

242

273

276

282

10

7

8

282
2

290
5

283
2

292
3

290
4

290

296

5

6
Admin dept.
18%

6Programmer
28%

200
150
210

100

218

236

263

269

274

280

285

281

289

286

285

290

Customer
Service
15%

Sales・
SoftwareDeveloper
39%

50
0
2016

2017

2018

2019

2020

2021

2022

2023

Q1

Q2

Q3

2023
•
•

Q4

Q1
2024

A consolidated subsidiary Fitting Cloud Inc. established in 2021
EMC Healthcare Co., Ltd. excluded from consolidation in 2022

FINDEX

Subsidiary*Calculated based on the number of permanent employees. Excludes executives, part-time employees, and temporary staff

🄫2024 FINDEX Inc.

Programmer

Sales・Software Developer

Customer Service

Admin dept.

Internal Audit（As of March 31, 2024)

16

Sustainable Management
through Investment in HR

Acquired "Kurumin" certification as a childcare support company in March 2024

Our Initiatives:• Introducing an exemption from overtime work for employees raising children
up to elementary school age and implementing a short-time work system• Establishing a system within each department to support and encourage
male employees wishing to take childcare leave• Promoting the combination of annual paid leave with public holidays toencourage employees to take vacations of five consecutive days or more,allowing them to refresh and strike a balance between work and life
• Aiming to increase the retention rate of female employees by reconsidering
fixed gender role allocations and strengthening in-house on-the-job training
to actively promote the appointment of female managers and expand theircareer domains, thereby promoting motivation and skill development amongfemale employees

🄫2024 FINDEX Inc.

17

Appendix

🄫2024FINDEXFINDEXInc.
Inc.
🄫2024

Net Sales

Appendix+69.7％（¥ Millions）
2,500

2,125
2,000
1,717

1,631
1,463

1,500

1,542

1,455
1,265

1,225

1,108

1,038

997

969

943

1,000
629

1,252

766

707

500

0
Q1

Q2

Q3

Q4

Q1

FY20/12

Q2

Q3

Q4

Q1

FY21/12
Medical Business

Q2

Q3

Q4

Q1

FY22/12Public Sector Business

Q2

Q3

Q4

Q1

FY23/12
Health Tech Business•Q1 net sales increased by 69.7% YoY•

Mainly driven by the Medical Business•Net sales of Public Sector Business significantly increased by 197.7% YoY•Demand was high in medical solutions aimed at improving the working conditions of doctors, as well as optimizing hospital operations* The "Accounting Standard for Revenue Recognition“ has been applied from FY2022* Business segments changed from FY2023. As for FY2022 figures are reallocated based on the change madeUntil FY2022 Public Business was included in Medical Business. Figures above are unaudited
🄫2024 FINDEX Inc.

19

Gross Profit Margin and CoGS (Fixed/Variable)

Appendix（mil（¥ Yen）
Millions）
2,500

80%
69.5%
64.5%
58.2%

48.8%

48.5%
1,500

56.7%

55.3%

55.1%

63.2%

70%

63.0%

62.6%

2,000

69.7%

57.1%

55.4%

43.7%

60%

50%

44.2%

40%
40.1%
1,000

30%

+87.7％

20%

500
10%

0

0%
Q1

Q2

Q3

Q4

Q1

FY20/12

Q2

Q3

Q4

FY21/12
CoGS(fixed)

CoGS(Variable)

Q1

Q2

Q3

Q4

Q1

Q2

FY22/12Gross Profit

Q3

Q4

FY23/12Q1
FY24/12Gross Profit Margin•

Saw improvement in gross profit margin to 63.2% in Q1 YoY•

The change in fixed cost expenses is not significant. Variable costs such as outsourcing expenses remained at a slight increase•

In Medical Business, the expansion of profitable cross-selling, growth in consulting services, and increased package sales have contributed to profitability* The "Accounting Standard for Revenue Recognition“ has been applied from FY2022
🄫2024 FINDEX Inc.

20

SG&A

Appendix（¥ Millions）
600（￥ Millions）

497
500

457

451
422

419

399

431

421

396

400

480

453

426

392

300

200

100

+16.3％

0
Q1

Q2

Q3

Q4

Q1

Q2

FY21/12

Q3

Q4

Q1

Q2

FY22/12
Personnel

R&D

Advertising

Q3
FY23/12Travel

Rent

Q4

Q1
FY24/12

Others• Increased personnel and recruitment expenses due to strengthening hiring efforts• Personnel and recruitment training expenses increased by 16.3% YoY• Employee count (consolidated) for Q1 FY2024, including directors and fixed-term employees, was 311• Average monthly overtime per employee was 16 hours 37 minutes in Q1 FY2023 and 8 hours 48 minutes in Q1 FY2024 (due to the scheduled working hours being
reduced from 8.0 to 7.5 hours in April 2023, the calculation for Q1 FY2024 assumes a standard workday of 8.0 hours)
🄫2024 FINDEX Inc.

21

Operating Profit

Appendix
Quarterly Performance on Operating Profit（¥ Millions）
1,000

862
800
700
600
540
451
400

370

214

200

399

288

217

32

85

109

38

0

(200)
Q1

Q2

Q3
FY21/12

Medical Business

Q4

Q1

Q2

Q3

Q4

Q1

FY22/12Public Sector Business

Q2

Q3

Q4

Q1

FY23/12

Health Tech Business•

Due to increased sales and improvement in gross profit margin, Q1 operating profit achieved a significant increase•

By segment, Medical Business, which accounts for the majority of profits, achieved a significant increase in earnings•

Public Sector Business also saw a significant increase in profits, achieving an operating surplus•

Health Tech Business continued to operate at a loss due to delays in sales activities

Operating Profit* The "Accounting Standard for Revenue Recognition“ has been applied from FY2022* Business segments changed from FY2023. As for FY2022 figures are reallocated based on the change madeUntil FY2022 Public Business was included in Medical Business. Figures above are unaudited
🄫2024 FINDEX Inc.

22

Order-to-Acceptance Timeline

Appendix

Revenue Composition Ratio Changes by Order Placement Period
More than 12
months ago

Less than 3months ago

More than 12
months ago

9-12monthsago

FY2021

3-6 months ago

6-9monthsago

Less than 3months ago
More than 12
months ago
3-6 months
agoLess than 3months ago

FY20239-12 months
ago

9-12
months ago

More than 12
months ago

6-9 months
ago

FY2022
6-9 months ago

Less than 3months ago

3-6 months ago

3-6 months ago•

The application of revenue recognition standards has led to a change in business practices•

The period from order placement to product acceptance has become longer compared to before•

Due to the change in business practices, there was a trend towards earlier receipt of purchase orders,which peaked in 2023 but has now stabilized

Q1
FY20249-12 monthsago

6-9 months ago*Sales by distributors, small orders, support and maintenance are excluded*Net sales are not adjusted to the "Accounting Standard for Revenue Recognition“. Ratios above are calculated based on the total amount of acceptance
🄫2024 FINDEX Inc.

23

Backlog and Orders (Excluding Maintenance)

Appendix

Orders and Backlog（¥
Millions）（mil.Yen）
2,000

1,894

Maintenance
30%

1,800

1,789

Sales
composition
ratio

1,600

1,429
1,346

1,400
1,263
1,197

1,200

1,122
1,071

1,059
1,000

958

908

917

933

637

979

962

909
834

829

1,157

1,041

969

800

1,159

1,114

846

863
799

690

728

688
617

613

600

352

400
271
200

0
Q1

Q2

Q3

Q4

Q1

FY20/12

Q2

Q3

Q4

Q1

FY21/12Q2Q3
FY22/12Backlog

Q4

Q1

Q2

Q3

Q4

Q1

FY23/12

Orders•The backlog is at 82% compared to the same period last year, returning to normal levels•

There appears to be a delay in the decision-making process for investments in the medical software by the hospitals, due to the revision of medical fee andworkstyle reform for doctors led by the central government•

The trend of early ordering is expected to continue

🄫2024 FINDEX Inc.

24

Net Sales FY2011-2023

Appendix（¥ Millions）
6,500

5,500

5,192
4,969
4,541

4,500

4,282

4,005

3,603
3,500
2,864

3,288

3,312

2016

2017

2,952

2,383

2,500
1,988
1,543
1,500

500

2011

2012

2013

2014

2015

2018

2019

2020

2021

2022

2023

-500
Support🄫2024 FINDEX Inc.

Outsourced R&D and Others

EMC Healthcare

Fitting Cloud

SoftwareHardware

Health Tech

Adjustment

25

Our Market ShareAppendix

An Overwhelming Market Share of

approx.

75%

in National University Hospitals

Market share in large hospitals with more than 400 beds ＝ approx. 40％

Other hospitals and clinics

Over 1,500 facilities*Calculation changed as categorization of large hospitals revised from 500 or more beds to 400 or more beds following the revision of medical service fees in 2018
*Consumers of one-time products are excluded from 2021
*Reference: Ministry of Health, Labor and Welfare 2021 Survey of Medical Facilities (static and dynamic) and Summary of Hospital Reports（As of March 31, 2024）
🄫2024 FINDEX Inc.

26

Changes in the Number of Customers

Appendix（# of Facilities）

Medical Solutions – By Type of Medical Facility

Q4FY2023

Q1FY2024

QoQ

Large hospitals（400 beds and more）

292

293

+1

Medium sized hospitals（100～399 beds）

316

326

+10

Small hospitals（20～99 beds）

83

88

+5

1,241

1,250

+9

55

56

+1

1,987

2,013

＋26

Clinics（19 beds and less）
Other
Total

（# of Facilities）
Solutions for Public Sector – By Product

Q4FY2023

Q1FY2024

QoQ

Solutions for Public Sector

27

28

+1

Solutions for Medical Facilities

5

8

+3

32

36

＋4

Total

🄫2024 FINDEX Inc.

27

Value Creation Mapping

Appendix

Enriching Society with Technologies and Creation
Digitally Connecting Medical
Communities

Equal Access to Medical Services

Developing New Technologies for Healthy
Livings•

Driving digitalization in and outside medical facilities, offering solutions that revolutionize the business models in the healthcare sector•

Proficient in processing and handling a variety of patient data owned by large hospitals•

Providing consulting as software specialists and applying in-house technology to products for the public sector and medical devices

Community-Based
Integrated Healthcare

Cloud-based Medical Software

Connecting medical facilities and individuals
through cloud-based services

Local
gov’tsConsultation
Service
Elderly careHome care

Public Document
Management System
DocuMaker
Office

RPA tool
DigiWorker

Domestic

Cyber security
Building a platform for securely managing andexchanging data

Check-up
facilities

Utilization ofcollaborative
data

Promotion of integrated regional care andcollaboration in regional healthcare

Expansion of the document
management system in linewith national policies

Pharmacy

Patient

Enhancement offunctions throughAI-generated
featuresUtilization of
medicaltreatment data

Implementation of cloud-based management analysis・
information linkage for medical data・provision of medical AI information technology

Hospital-Centric
Healthcare

On-premises Medical Software
Hospital

Overseas

Further expansion of flagship product sales

🄫2024 FINDEX Inc.

Claio

C-NoteE-prescription

My Number
healthinsurance card

Establishment andconsolidation of the stockbusiness

Gaze Analyzing Perimeter
Utilization of in-houseowned visual field data

REMORA DocuMaker
GAP

Cloud-based/
On-premises
Medical Software

Expanding domestic
and overseas sales

Establishing a new
standard for visual
field testing

Implementation ofcontrast sensitivity
testing

GAP-screener

R&D and market
launch as a diagnostic
device for MCI

28

Trends and Topics in the Medical Software Industry 2024

Appendix「 Medical DX Reiwa Vision 2030 」
Establishment of a National Medical
Information Platform

Standardization of EMR Information(Promotion across all medical institutions)

Digitalization of Medical Treatment Fee
Amendment

Medical AI / Big Data

Cloud-Based Services

Telemedicine•

Generally, all medical institutions and pharmacies areconnected to the Online Certification System for
Healthcare→Laying the Groundwork for Data Utilization• The implementation of the Next Generation Medical
Infrastructure Act will expand the collection andutilization of diverse real-world data
• In addition to the Health Insurance Claims Data currently
being traded in the market, it will be possible to handle
more accurate medical data such as medical records inthe future
Advantages for hospitals and healthcare industry:• Support for diagnosis, treatment, and surgery• Applications for disease and nursing care prevention andreduction of medical costs• Development of new markets via data accumulation•

Cloud-based operations with high security levels are
now possible without compromising the "three principles
of electronic storage“• In small and medium-sized hospitals and clinics, the useof cloud-based products is expanding, while in large
hospitals, on-premises system operation is still common→The widespread adoption of cloud storage will likely
accelerate as its market prices decrease• Utilizing the cloud for the Construction of a Regional
Collaboration Network
Advantages for hospitals and healthcare industry:• Efficient information sharing enables smart coordination
with other facilities• No need for extensive capital investment, server room
allocation, or regular system updates•

The Japanese gov’t targets all hospitals and pharmacies
to implement e-Prescriptions by the end of 2024 (Current
implementation rate is 1%)•

The Japanese gov’t plans to phase out healthinsurance cards in fall 2024 and integrate them into
the national My Number identification system•

Medical facilities need to install Online Certification
System for Healthcare and issue HPKI cards prior to theutilization of e-Prescriptions•

80% of the hospitals and pharmacies in Japan had
already started the new operation utilizing Online
Certification System for Healthcare•

Optimization of dispensing and counseling tasks•

Prevention of duplicated prescriptions by centralizing
management of prescribing information•

Contribution to telemedicine and home care services

The 2022 revision of medical fees has led to an increasein the insurance points for initial consultation fees to 87%
of in-person medical care, resulting in a rapid increase infacilities that have introduced telemedicine• Meanwhile, there is a limited number of medical facilities
that offer telemedicine services, and large hospitals arehesitant to fully implement them
→The applications are limited, primarily in second opinion
outpatient settings• Emergence of teleoperated surgical robots
Advantages for hospitals and healthcare industry:• Expanding the choice of medical facilities, improving
healthcare systems in remote areas and to address
medical service disparities• The reduction of congestion and infection risk due to adrop in patient visits

Better Working Environments

Myna Insurance Card

Electronic Prescriptions

Advantages for hospitals and healthcare industry:••

Starting next April, overtime work for employedphysicians will be limited to no more than 960 hours
per year→Proper management of working hours is necessary•

Digitalization has also been accelerated for
improvement of efficiency in medical practices

Advantages for hospitals and healthcare industry:

Advantages for hospitals and healthcare industry:•

Enhanced healthcare through centralized medical
history management•

Improvement in long working hours of physicians•

Reduction of administrative costs•

Sales opportunities for attendance management
solutions

Domestic Market Size of Medical Software : approx. 500 billion yen*
🄫2024 FINDEX Inc.

* excerpted from NIKKEI COMPASS October 3, 2023

29

On-Premise Solution

Medical Business - Our Flagship Solutions

Appendix

Cloud Solution

Hospitals

Clinics
Medical Big Data Search System

Integrated Browsing System

UniversalSearcher

ClaioDashboard

PDI Import / Export
Solution

PDI+MoveBy

Network Imaging System

Claio

Progress Note System

C-NoteHIS(Hospital Information System)

Management Solution

C-ScanConnectFAX

Progress Note System

C-NoteMedical Information
Remote Sharing
Application

Perinatal Information
SystemMedical Document

Remotalk-Cloud

MapleNote

Radiological Information

FAX Reference

Document Integrated
Archiving System

Electronic Medical

Management System

RecordDocuMaker

REMORA

System

ProRad RIS

Patients

Data Management Software

Claio

SystemPatient
Information Application

ProRad RS

Medical Avenue

Radiological Reporting

同意診断書Medical
書
Docum
ents

Care
Facilities

Telemedicine System forLarge Hospitals

Electronic Medical Record

On-shinPharmacies
RPA Tool forDocument Management

RPA Tool for

Medical Facilities

SystemMedical Facilities

DigiWorker

DocuMaker Office

DocuMaker

Electric Tracing
Report Service

Local
Governments

AAdE-Report

Medical Community
30
🄫2024 FINDEX Inc.

Financial Indicators

Appendix
ROIC and Equity Ratio

ROE and DuPon Analysis
35%

140%

35%

95%

30%

90%

25%

85%

20%

80%

15%

75%

130%

30%

120%
25%

110%
100%

20%

90%
15%

80%

10%

70%
FY14

FY15

ROE

FY16

FY17

FY18

Net profit margin

FY19

FY20

FY21

Total asset turnove(RHS)

FY22

FY23

10%

70%
FY14

FY15

FY16

FY17

FY19

ROIC

Financial leverage(RHS)

FY20

FY21

FY22

FY23

Equity ratio (RHS)

Marginal profit Ratio

Cash Flow（¥ Millions）

FY18

100%

3,000

1,400

90%

2,500

80%

2,000

70%

1,200
1,000

60%

1,500

800

50%

1,000

40%

500

30%

600
400

20%

0

200

10%

(500)

0%

0
Q1

(1,000)
FY14

FY15

FY16

Operating C/F

🄫2024 FINDEX Inc.

FY17

FY18

FY19

Investment C/F

FY20

FY21

Free C/F

FY22

Cash

FY23

Q2

Q3

FY20/12

Q4

Q1

Q2

Q3

FY21/12

Marginal profit ratio

Q4

Q1

Q2

Q3

FY22/12
Variable cost ratio

Q4

Q1

Q2

Q3

Q4

Q1

FY23/12

FY24/12

Break-even sales

31

Shareholders Information

Appendix

Number of shares and shareholders

Principal shareholders

Total number of authorized shares

78,336,000

Total number of issued shares

26,608,800

Number of shareholders

4,291

Breakdown of shares by type of shareholder
Type# of shares

Name# of shares% of total
shares inissue

Teruo Aibara

7,707,600

29.9

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,631,500

10.2

# of
shareho-lders% of total
shares in
issue

Mizuho Trust & Banking Co., Ltd. Securities Custody
Trust 0700068

1,440,000

5.6

Mizuho Trust & Banking Co., Ltd. Securities Custody
Trust 0700067

1,440,000

5.6

CACEIS BANK/QUINTET LUXEMBOURG
SUB AC / UCITS CUSTOMERS ACCOUNT(Standing proxy: The Hongkong & Shanghai Banking
Corporation Limited, Tokyo Branch)

1,004,600

3.9

Custody Bank of Japan, Ltd. (Trust Account)

970,600

3.8

Ehime Bank, Ltd.

967,200

3.8

THE BANK OF NEW YORK MELLON
140040(Standing proxy: Settlement Sales Division, Mizuho
Bank, Ltd.)867,946

3.4

Keiji Takemura

761,000

3.0

SCBHK AC LIECHTENSTEINISCHELANDESBANK AG(Standing proxy: MUFG Bank, Ltd.)

275,000

1.1

Japanese financial
institutions

7,726,000

13

29.0

Japanese securities
companies

615,645

24

2.3

Other Japanesecompanies

173,60125

0.7

Foreign investors

3,164,996

67

11.9

Japanese individuals,
others (Including
treasury shares)

14,928,558

4,162

56.1

Total

26,608,800

4,291

100.0

金融機関
証券会社

29.0

その他の国内法人
外国法人等
個人・その他🄫2024 FINDEX Inc.

56.1
11.9

2.3
0.6

(As of December 31, 2023 ）32

Progressive Software Creators
Always have, Always will.

🄫2024 FINDEX Inc.