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

Consolidated Financial Results [Japanese GAAP]
for the Fiscal Year Ended December 31, 2023
February 13, 2024
Listed company:

FINDEX Inc.
Stock Exchange Listing:Tokyo Stock Exchange
Stock code:
3649
URL:
https://findex.co.jp/en/index.html
Representative:
Teruo Aibara, President & CEO
For inquiries:
Takashi Murakami, Corporate Officer, Finance & Investor Relations
Contact:+81-3-6271-8958
Scheduled date of annual general meeting of shareholders:March 27, 2024
Scheduled date to commence dividend payment:
March 28,, 2024
Availability of supplementary materials on financial results:
Yes
Availability of financial results briefing:
Yes for analysts
1. Consolidated Financial Results for the Fiscal Year ended December 31, 2023
(From January 1, 2023, to December 31, 2023)*Figures are rounded down to the nearest million yen, except share and per share data*“%” indicates year-on-year changes from the previous corresponding period(1) Consolidated Operating Results (Cumulative)
Net sales

Operating profit

Recurring profit

Profit attributableto owners of parent

JPY MM%
JPY MM%
JPY MM%
JPY MM
Fiscal year ended
December 31, 2023
5,191
14.3
1,496
45.5
1,527
44.7
1,059
December 31, 2022
4,541
(8.6)
1,028
11.7
1,055
11.8
722
(Note) Comprehensive income: FY2023: 1,056 million yen [45.8%], FY2022: 724 million yen [13.9%]

%

46.5
13.6

Net income
Ordinary
Operatingoverincomeoverincomeovershareholder’s
totalassetssales
equityFiscal year ended
JPY
JPY
%
%
%
December 31, 2023
41.31
－
23.9
28.0
28.8
December 31, 2022
28.21
－
19.2
22.1
22.6
(Reference) Share of profit (loss) of entities accounted for using equity method:
FY2023: - million yen, FY2022: -million yen(Notes) 1. No statement is indicated above for the number of diluted earnings per share for FY2022 because there
were no issuable shares with dilutive effects.
2. No statement is indicated above for the number of diluted earnings per share for FY2023 because there
were no issuable shares.
Basic earnings
per share

Dilutedearnings per
share(2) Consolidated Financial Position
Equity-to-asset
ratio
As of
JPY MM
JPY MM%
December 31, 2023
5,934
4,845
81.5
December 31, 2022
4,980
4,042
81.1
(Reference) Equity amount: FY2023: 4,838 million yen, FY2022: 4,038 million yen
Total assets

Net assets

1

Net assets per share
JPY
188.67
157.63

(3) Consolidated Cash FlowsNet cash providedby (used in)operating activities
Fiscal year ended
JPY MM
December 31, 2023
842
December 31, 2022
693

Net cash providedby (used in)investing activities
JPY MM(296)(230)

Net cash providedby (used in)financing activities
JPY MM(270)(142)

Cash and cash
equivalents at endof period
JPY
2,563
2,287

2. Dividends

Year ended December 31, 2022
Year ended December 31, 2023
Year ending December 31, 2024
(Forecast)

1stquarter

Annual dividends per share
2nd
3rd
Yearquarter
quarter
end

JPY
－
－

JPY
3.00
4.00

JPY
－
－

－

7.00

－

Total

Total
dividends

Payoutratio

Dividends
over
net assets

JPY
6.50
9.00

JPY
9.50
13.00

JPY MM
244
355

%
33.7
31.5

%
6.5
7.5

8.00

15.00

35.1

3. Consolidated Financial Forecasts for the Fiscal Year ending December 31, 2024 (From January 1, 2024,
to December 31, 2024)* “%” indicates year-on-year changes from the previous corresponding period
Profit attributable
Basic
OperatingRecurring
Net salestoownersoftheearnings
profitprofitparentper share
Six months ending
June 30, 2024
Fiscal year ending
December 31, 2024

JPY MM%

JPY MM%

JPY MM%

JPY MM

%

JPY

2,872

27.7

754

89.8

764

84.4

527

85.6

20.56

5,782

11.4

1,574

5.2

1,591

4.2

1,097

3.6

42.79

*Notes:(1) Changes in Significant Subsidiaries during the Current Quarter
Changes in specified subsidiaries that caused a change in the scope of consolidation: None
Newly included companies: None, Newly excluded companies: None
(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies other than (i) above: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(Note) For more detailed illustration, please refer to “3. Consolidated Financial Statements and Significant
Notes Thereto (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)” on page
13 of the attached document.
(3) Number of Shares Outstanding (Common Shares)
As of December 31, 2023
As of December 31, 2022
Number of shares outstanding at the end
26,608,800
26,608,800
of the period (treasury shares included)
Number of treasury shares at the end of962,288
987,475
the period
Fiscal year ended
Fiscal year ended
December 31, 2023
December 31, 2022
Average number of outstanding shares
25,637,246
25,617,486
during the period(Note) The number of treasury shares at the end of the period includes our shares held by Custody Bank of Japan,
Ltd. (Trust Account E) (154,400 shares for FY2023, 161,100 shares for FY2022). Our shares held by Custody
Bank of Japan, Ltd. (Trust Account) are included in the treasury share deducted in the calculation of the average
number of shares during the period (157,082 shares for FY2023, 164,939 shares for FY2022).

2

(Reference) Non-consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year ended December 31, 2023
(From January 1, 2023, to December 31, 2023)*Figures are rounded down to the nearest million yen, except share and per share data*“ %” indicates year-on-year changes from the previous corresponding period(1) Non-Consolidated Operating Results (Cumulative)
Net sales
Fiscal year ended
December 31, 2023
December 31, 2022

Operating profit

Recurring profit

Profit

JPY MM%

JPY MM%

JPY MM%

JPY MM

%

5,153
4,487

14.8
(8.9)

1,448
1,027

41.0
8.5

1,481
1,056

40.2
9.0

1,028
737

39.4
9.8

Basic earnings
Diluted earnings
per shareper share
JPY
JPY
Fiscal year ended
December 31, 2023
40.10－
December 31, 2022
28.79－
(Notes) 1. No statement is indicated above for the number of diluted earnings per share for FY2022 because there
were no issuable shares with dilutive effects.
2. No statement is indicated above for the number of diluted earnings per share for FY2023 because there
were no issuable shares.
(2) Non-Consolidated Financial Position
Total assets
Net assets
Equity-to-asset ratio
As of
JPY MM
JPY MM%
December 31, 2023
6,057
4,970
82.1
December 31, 2022
5,146
4,201
81.6
(Reference) Equity amount: FY2023: 4,970 million yen, FY2022: 4,201 million yen

Net assets per share
JPY
193.81163.98

2. Non-Consolidated Forecast for the Fiscal Year ending December 31, 2024
(From Jan. 1, 2024, to Dec.31, 2024)* Figures are rounded down to the nearest million yen, except share and per share data
* “ %” indicates year-on-year changes from the previous corresponding period
Net sales
Six months ending
June 30, 2024
Fiscal year ending
December 31, 2024

Recurring profit

Basic earnings
per share

Profit

JPY MM%

JPY MM%

JPY MM

%

JPY

2,842

27.9

764

100.1

527

100.0

20.56

5,682

10.3

1,589

7.3

1,095

6.5

42.71

* This quarterly financial results report is out of scope of the quarterly review by a certified public accountant nor
audit firm.
* Explanation on appropriate use of performance forecasts and other special notes:(Caution statement regarding forward-looking statements and descriptions)
The performance forecast described in this report are based on information that is available to the Group, as well as
certain assumptions and estimates that are deemed to be reasonable, and we make no assurance that suchdescriptions prove to be correct. Actual figures may significantly differ due to various factors. For assumptions
used in forecasting operating results and precautions regarding the use of the forecast, please refer to “1. Status of
the Group (4) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements” on page 7of the attached document for further information.
(Availability of financial results briefing details)
A summary of the financial results briefing will be available on the Company's website at a later date.

3

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023

Attached Material
Index
1. Qualitative Information on Consolidated Financial Results……………………………………. ………..

2(1) Explanation on Operating Results………………………………………………………………….…..
(2) Explanation on Financial Position ……………………..………………………………………………

26(3) Explanation on Cash Flows for the Fiscal Year………..……………..……………..……………..…
(4) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements…………

67(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years………..…
2. Qualitative Information on Quarterly Consolidated Financial Results………..……………..……………

7
7

3. Consolidated Financial Statements and Significant Notes Thereto………..……………..……………..…
(1) Consolidated Balance Sheet …………………………………………………………………………..

88(2) Consolidated Statements of Income and Comprehensive Income ………………………….. ………..
Consolidated Statement of Income, Cumulative……………………………………………………..

9
9

Consolidated Statement of Comprehensive Income, Cumulative ………………………….………..
(3) Consolidated Statement of Changes in Equity…………………………………………………………

1011(4) Consolidated Statements of Cash Flows…………………………………………………………..……
(5) Notes to the Consolidated Financial Statements…………………………………………….. ………..

12
13

Notes on Going Concern Assumption …………………………..…………………………………….
Changes in Accounting Policies …………..………………………………………………………….

13
13

Additional Information ………………………………………………………………………………..
Segment Information etc.………………………………………………………………………………

13
14

Per Share Information………..……………..……………..……………..……………..……………..
Significant Subsequent Event…..……………..……………..……………..………..……………..…

17
17

4. Other ……………………………………………………………………………….………….………….

18

1

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023

1. Qualitative Information on Consolidated Financial Results(1) Explanation on Operating Results
In the domestic medical industry, where the Group primarily operates, changes to the insurance systems forreimbursing medical treatment fees, nursing care fees, and disability welfare service fees are slated to take effectfrom April 2024 in what is known as the “triple” amendments. This has led to a growing focus on improving
operational practices and re-evaluating information management in the medical field. Additionally, there are active
discussions regarding the promotion of the “Medical DX (Digital Transformation) Reiwa Vision 2030” proposedby the government, including the “establishment of a national medical information platform”, “standardization ofelectronic medical records”, and “digitalization of medical fee revision”.
Furthermore, the business environment surrounding the Group had undergone significant changes due to the
COVID-19 pandemic. Those changes had also influenced the approach to software investments in the healthcare
industry. Among the large hospitals, there has been an increasing recognition that digitalization is essential not only
for streamlining internal operations but also for enhancing accessibility and quality of healthcare services within
the community, including collaborations with other hospitals, pharmacies, and caregiving institutions.
Simultaneously, there is a growing willingness to invest in advanced solutions for supporting medical practices,which improve the working conditions of physicians and healthcare professionals, as well as platforms that enabledirect electronic communications with patients.
In response to these industry trends and on-site needs, the Group is actively engaged in the sales expansion ofexisting products and the development and implementation of new services utilizing cloud-based technology.
Also, we are beefing up our sustainability initiatives. We actively participate in initiatives related to climatechange, such as endorsing the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD), joining the Japan Climate Initiative (JCI), and responding to questionnaires from the Carbon Disclosure
Project (CDP) regarding climate change initiatives both domestically and internationally. Additionally, to achieve
an increase in the ratio of female managers, we have formulated an action plan in accordance with the Act on
Promotion of Women's Participation and Advancement in the Workplace, and implemented various measures suchas consulting on career plans and providing trainings. From April 2023, we have been implementing measures toimprove the working environment, including reducing regular working hours and establishing a full remote work
system for employees residing in distant domestic locations or overseas. These efforts aim to enhance the quality ofwork-life for our employees. Moreover, we have also publicly announced the "My Jinken Declaration," promotedby the Ministry of Justice, implementing various multi-faceted initiatives to promote sustainable management. We
are committed to fulfilling our social responsibility as a company meeting the needs of society by providing
innovative solutions, and supporting healthcare and the well-being of individuals, thus contributing to thedevelopment of new social infrastructure.
The consolidated financial results for the fiscal year ended December 31, 2023 are as follows.
(JPY in thousands)
Fiscal year
Fiscal year
FY2023
ended
ended
ChangeChangeachievement
December 31, December 31,(amount)
(%)
rate
2022
2023
Net sales
4,541,242
5,191,735
650,49314.3％
102.5%
Operating profit
1,028,522
1,496,570
468,04745.5％
114.0%
Recurring profit
1,055,708
1,527,453
471,74544.7％
114.8%
Profit attributable to722,779
1,059,140
336,36146.5％
114.7%
owners of the parent
Regarding the fiscal year ended December 31, 2023, consolidated net sales were ¥5,191,735 thousand (+14.3%
YoY), operating profit was ¥1,496,570 thousand (+45.5%), recurring profit was ¥1,527,453 thousand (+44.7%),
and profit attributable to owners of the parent was ¥1,059,140 thousand (+46.5%). Due in large part to the strong
performance of our Medical Business segment, both sales and profits exceeded the performance of the same period
last year.
Consolidated results by the reportable segments of the current fiscal year are as follows.
From the first quarter of the current fiscal year, we reorganized our reportable segments into the following threesegments: Medical Business, Public Sector Business, and Health Tech Business. To enable year-on-yearcomparisons, financial results of the fiscal year ended December 31, 2022 have been restated under the new
segments.

2

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023≪Medical Business≫(JPY in thousands)

Net sales
Operating profit

Fiscal year ended
December 31, 2022
4,352,187
1,267,070

Fiscal year ended
December 31, 2023
4,935,926
1,625,997

Change (amount)583,738
358,927

Change (%)
13.4%
28.3%

Mainstay products in the Medical Business segment include the image data management software Claio, theprogress note system C-Note, and the document management system DocuMaker. These flagship products are rated
highly in large hospitals that provide advanced healthcare services and therefore command a stable share of themarket. As core hospital solutions, they play integral roles essential to the delivery of medical care. The number of
Claio users exceeded 1,500 in November 2023, indicating a consistent growth in customer base.
Regarding the fiscal year ended December 31 2023, consolidated net sales in this segment were ¥4,935,926
thousand (+13.4% YoY) and operating profit was ¥1,625,997 thousand (+28.3%). Implementation projects forlarge hospitals are progressing well, and the sales of packaged products are also performing steadily. Additionally,
it is noteworthy that our consulting department, newly established in January 2023, has been performing well.
During the current consolidated fiscal year, we have been focusing on sales of packaged products to both existingand new customers in Japan. As a result, 45 hospitals and 109 clinics newly installed, added on, or updated oursolutions during this period. In November 2023, we launched Cloud Backup Service, enabling local hospitals andclinics to securely store and manage backup data of medical information, as well as documents that need to be kept
in facilities, in a cloud storage system. As for the sale of Claio in India, we have continuously been in detailed
discussions with Toyota Tsusho Corporation (headquartered in Aichi Prefecture, hereinafter referred to as TTC),
who will be leading the marketing and sales operations, about the timing and pricing for the product launch.
Fitting Cloud Inc., a subsidiary specializing in cloud-based solutions, started initiating a collaborative research
project with Kyoto University Hospital's School of Medicine to leverage AI in automating documentation tasks inmedical settings in October 2023. Fitting Cloud has actively been working towards integrating the findings fromthis research into FINDEX products. Additionally, during the 43rd Joint Conference on Medical Informatics held in
November 2023, Fitting Cloud introduced various products designed to align with the upcoming reforms in theworking practices of physicians scheduled in April 2024.
≪Public Sector Business≫(JPY in thousands)

Net sales
Operating profit or loss

Fiscal year ended
December 31, 2022
121,286(33,258)

Fiscal year ended
December 31, 2023
187,405
41,364

Change(amount)
66,11974,623

Change (%)
54.5%－

The Public Sector Business segment was established this fiscal year.
In this segment, we mainly sell DocuMaker Office, an archive management and e-approval solution, to mostly
government ministries and agencies, local governments, public corporations and medical institution that canleverage its powerful features. The installation of e-approval and document management solution is accelerating on
the back of the central government’s push for DX, which in turn is leading to a rise in enquiries about, andnegotiations for, the installation of packages for government offices and also medical institutions.
Regarding the fiscal year ended December 31 2023, consolidated net sales in this segment were ¥187,405
thousand (+54.5% YoY) and operating profit was ¥41,364 thousand (versus the year-earlier operating loss of¥33,258 thousand).
Regarding packages sold to local governments, the cumulative number of package installations has reached 26
since the service launch. In the first half of the fiscal year 2024, we have five ongoing implementations with aprefecture, independent administrative agencies, and national universities scheduled for acceptance. Focusing on
building a track record for future business expansions, we are prioritizing sales activities that emphasize scale overquantity, achieving steady results. We are actively engaged in negotiations for operational projects in the latter halfof the fiscal year 2024 and beyond, with proposals expected to be implemented from the first quarter of 2024
onwards. Considering that our high-level consulting skills and user-oriented, user-friendly solutions have a strong
reputation, we anticipate gaining many more contracts going forward. Furthermore, by proactively pursuing

3

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023

collaboration with other systems, we believe there are opportunities for additional orders from existing projects inthe future. A subscription business model is adopted to this service. Profit growth generated by the buildup ofmonthly service fees is anticipated, as the number of existing users increases in the future.
As for the packages aimed at the administrative departments at medical facilities, we have been actively
expanding sales since 2022, with a primary focus on large and medium-sized hospitals, which are our existingusers. Since the launch of the service, the cumulative number of installations has reached six, with five new orders
secured in 2023. Additionally, three deployments are confirmed to commence by spring 2024. Furthermore, ourproduct obtained JIIMA certification in December 2023, meeting the legal requirements for the Electronic Health
Record (EHR) Scanner Storage Software Certification System. This not only enhances the existing hospital
Function Evaluation (Note1) support features but also anticipates expanded sales opportunities as a solution
compliant with the Electronic Bookkeeping Law.
≪Health Tech Business≫(JPY in thousands)

Net sales
Operating loss

Fiscal year ended
December 31, 2022
69,253(205,288)

Fiscal year ended
December 31, 2023
68,403(170,791)

Change (amount)(849)
34,496

Change (%)(1.2)－

In the Health Tech Business segment, we focused our efforts on domestic sales and on preparations of overseas
sales expansion of our gaze analyzing perimeter, or GAP (Note2) for short. GAP is an affordable, groundbreaking
wearable device that enhances availability by measuring a patient’s visual field with a completely different
approach to that of conventional examination methods. It can also contribute to the early detection of retinal
diseases, such as glaucoma and other conditions that lack obvious symptoms in the early stages. Unlike a
conventional visual field examination, the product does not require the use of a dark room, thus shortening theexamination time and alleviating the burden on the patient. Moreover, by promoting the use of GAP at facilities
that conduct medical exams and health checkups, early-stage retinal disease patient data can be shared with R&D
centers in Japan and overseas with the potential for it to contribute to the innovation of technology and solutions innumerous fields, including pharmaceuticals and life insurance.
Regarding the fiscal year ended December 31 2023, consolidated net sales in this segment were ¥68,403 thousand(-1.2% YoY). We recorded an operating loss of ¥170,791 thousand, versus the year-earlier operating loss of¥205,288 thousand. Net sales slightly decreased year on year due to the impact of EMC Healthcare Co., Ltd.
(headquartered in Tokyo) being removed from the scope of consolidation. On the other side, our operating loss
decreased for the same reason, resulting in a smaller loss.
During the current consolidated fiscal year, we have been conducting demonstrations and sales of the products atdomestic medical facilities, and stepping up sales of GAP-screener (Note3) to nationwide health checkup facilities
in collaboration with TTC. There were 14 domestic shipments of these products in the fiscal year ended December
31 2023. In October 2023, we exhibited GAP and co-hosted a seminar at the “77th Annual Congress of Japan
Clinical Ophthalmology” attracting considerable interest from numerous healthcare professionals. Furthermore, inNovember 2023, an explanation of GAP as a medical device was featured in a specialized ophthalmology journal,
marking progress in our promotional activities.
We also continue to undertake initiatives with a view to expanding overseas. Through one of our sales
distributors Rexxam Co., Ltd. (headquartered in Osaka, hereinafter referred to as Rexxam), we have started themass-manufacturing process of the products to target shipments to the EU countries within 2023. We are also
working to acquire pharmaceutical regulatory approval in India and Indonesia.
In our efforts toward international expansion, we commenced shipments to the EU, the Middle East, and somecountires in North Africa through one of our sales distributors Rexxam from December 2023. In the initial batch,
we shipped 46 units. Moving forward, the product, under the name "FIELDNavigator," will be sold in
approximately 50 countries as an OEM product of Rexxam.
In addition, because the product can be used to detect not only visual field abnormality, but also MCI (Note4), it
was adopted by the Japan Agency for Medical Research and Development (AMED) for the R&D of a screening
program for slight cognitive dysfunctions, utilizing digital phenotyping of gaze point response and eyeball
movements, as part of its 2021 research project for medical-engineering collaboration and implementation of
artificial intelligence. We continue to pursue R&D together with Kyoto University, as we expect new medical

4

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023

devices will be introduced to the medical frontline over the next few years.
(Note1) Hospital Function Evaluation: A system used to assess and evaluate the functions and quality of medical
services provided by hospitals in Japan. It helps in ensuring the standardization and quality of healthcare
services across various medical institutions, including general hospitals and other healthcare facilities.
(Note2) Gaze Analyzing Perimeter, GAP (Notification No. of medical device manufacturing and sales
38B2X10003000002)(Note3) Gaze Analyzing Perimeter, GAP-screener (Notification No. of medical device manufacturing and sales
38B2X10003000003)(Note4) Abbreviation for Mild Cognitive Impairment. A stage of symptoms between those of healthy individuals
and those with dementia, which has not yet progressed to dementia.

5

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023(2) Explanation on the Financial Position Status of Assets, Liabilities, and Net assets

AssetsLiabilities
Net assets

As of December 31, 2022 As of December 31, 2023
4,980,780
5,934,285
937,842
1,088,925
4,042,937
4,845,360(JPY in thousands)
Change (amount)953,505
151,082
802,422(Assets)
Total assets amounted to ¥5,934,285 thousand, an increase of ¥953,505 thousand from the end of the previous
fiscal year.
1. Current assets
Current assets amounted to ¥5,006,955 thousand as of FY2023 end, an increase of ¥878,652 thousand fromFY2022 end, which is mainly composed of an increase of ¥279,413 thousand in cash and deposits, an increase of¥88,453 thousand in notes receivable - trade and an increase of ¥460,145 thousand in contract assets.
2. Non-Current assets
Non-current assets amounted to ¥927,330 thousand as of FY2023 end, an increase of ¥74,852 thousand fromFY2022 end, which is mainly composed of an increase of ¥39,044 thousand in intangible assets, an increase of¥49,840 thousand in investments and other assets, partially offset by a decrease of ¥14,032 thousand in tangible
assets.
(Liabilities)
Total liabilities as of FY2023 end amounted to ¥1,088,925 thousand, an increase of ¥151,082 thousand from theend of the previous fiscal year.
1. Current liabilities
Current liabilities amounted to ¥772,846 thousand as of FY2023 end, an increase of ¥118,843 thousand fromFY2022 end, which is mainly composed of an increase of ¥103,712 thousand in income taxes payable.
2. Non-current liabilities
Long-term liabilities amounted to ¥316,078 thousand as of FY2023 end, an increase of ¥32,238 thousand fromFY2022 end, which is mainly composed of an increase end of ¥46,338 thousand of provision for share awards.
(Net assets)
Net assets amounted to ¥4,845,360 thousand as of FY2023 end, an increase of ¥802,422 thousand from FY2022
end. This was primarily due to an increase of ¥784,967 thousand in retained earnings.
(3) Explanation on Cash Flows for the Fiscal Year
(JPY in Thousands)

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period

Fiscal year
ended
December 31,
2022
693,848(230,160)(142,020)
321,668
2,045,974

Fiscal year
ended
December 31,
2023
842,844(296,937)(270,494)
275,4132,287,747(79,895)-

79,8952,287,747

2,563,160

275,413

Change(amount)
148,995(66,776)(128,473)(46,255)
241,772

Cash and cash equivalents (hereafter “cash”) as of FY2023 end amounted to ¥2,563,160 thousand, an increase of¥275,413 thousand from FY2022 end (up 12.0%). Cash flows from each activity and their significant components
are as follows:(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥842,844 thousand, an increase of ¥148,995 thousandcompared to FY2022. This is mainly attributable to ¥1,524,453 thousand of income before income taxes, and¥562,845 thousand of increase in trade receivables.

6

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥296,937 thousand, an increase of ¥66,776 thousand comparedto FY2022. This is mainly attributable to ¥254,278 thousand of acquisition payment for intangible assets (mainly
software for sales).
(Cash flows from financing activities)
Net cash used in financing activities amounted to ¥270,494 thousand (The dividend payment for the previous
consolidated fiscal year was ¥232,020 thousand). In the previous consolidated fiscal year, our subsidiary EMC
Healthcare Co., Ltd. secured short-term borrowings of ¥100,000 thousand.
(4) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements
The Group's consolidated financial forecast for the fiscal year ending December 31, 2024, is as follows.
(JPY in Thousands)
Fiscal year ended December 31, 2023 Fiscal year ending December 31, 2024
(Result)(Forecast)YoY Change
st
nd
st
nd
1 Half
2 HalfFull year
1 Half
2 HalfFull year
Net sales
2,249,242 2,942,493 5,191,735 2,872,000 2,910,000
5,782,000
11.4%
Operating profit
397,300 1,099,269 1,496,570
754,000
820,000
1,574,000
5.2%
Recurring profit
414,372 1,113,081 1,527,453
764,000
827,000
1,591,000
4.2%
Profit attributable to283,881775,258 1,059,140
527,000
570,000
1,097,000
3.6%
owners of the parent
The Group's performance forecast for the fiscal year ending December 2024 anticipates an increase in both sales
and profit compared to the actual results of the fiscal year ended December 2023. We plan to expand investment,
primarily in human resources, and as a result, the planned profit is expected to be slightly below the target of the
mid-term management plan. For the fiscal year ending December 2024, we will continue to focus on the sale ofhigh margin packaged products, contributing to an expected increase in sales and profit in our core business, theMedical Business, surpassing the fiscal year ended December 2023. In the Public Sector Business, due tosignificantly higher demand than anticipated, we expect sales and profit to exceed those of the fiscal year ended
December 2023. However, in the Health Tech Business, we are restructuring the domestic and international
business plans due to substantial delays in the GAP project. We will implement measures to enhance the sales
structure through strengthened agent sales, aiming to improve operating profit. As part of our management strategy,
we will actively pursue effective M&A, focusing on selecting acquisition candidates that contribute to thereinforcement and expansion of our business.
The forward-looking statements in this document are based on information available as of the announcement dateand may differ from actual performance due to various factors in the future. If a revision to the performance
forecast becomes necessary, we will promptly disclose it.
(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years
The Group intends to maximize its corporate value by establishing its position in the market through innovative
solution and advanced consulting capabilities. To achieve this, maintaining an optimal balance between corporate
value and shareholder value, our policy is to pay dividends based on a comprehensive assessment of our businessperformance, financial condition, and achievement of our business plan, while maintaining and expanding internal
reserves to continue to make necessary re-investments in an agile and flexible manner. Taking into consideration
our business performance and future business development, we have decided to pay a year-end dividend of ¥9.00
per share for FY2023.
The interim dividend for FY2024 is planned to be ¥7.00 per share and a year-end dividend ¥8.00 per share inlight of our earnings forecast. Retained earnings will be effectively re-invested to secure talented human resources
and to enhance software assets for sale, which are the fundamental factors for our successful growth. We arecommitted to returns profits to shareholders over the long term.
2. Qualitative Information on Quarterly Consolidated Financial Results
For the time being, our policy is to prepare our consolidated financial statements in accordance with Japanese
GAAP, taking into consideration the comparability from period to period (horizontal analysis) and thecomparability among companies (vertical analysis).

7

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023

3.
(1)

Consolidated Financial Statements and Significant Notes Thereto
Consolidated Balance Sheet(JPY in thousands)
As of December 31, 2022 As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Tangible assets
Buildings
Accumulated depreciation
Buildings, net
Other
Accumulated depreciation
Other, net
Total tangible assets
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - other
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Provision for share awards
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

82,413,747
32,3801,052,240
276,637
165,417
3,975
146,61237,291
4,128,302

2,693,160
120,834
1,066,487
736,783
216,844
3,967
118,376
50,502
5,006,955

85,899(35,189)
50,709181,573(128,995)
52,578103,287
251,005344
251,349

69,065(22,702)46,363
176,258(133,366)
42,891
89,255
tangible assets
290,050344
290,394

56,700158,234
139,836
143,068
497,839
852,477
4,980,780

199,130
163,574
174,643
10,332547,680
927,330
5,934,285

81,209142,630
227,529
202,633
654,00239,37999,701
331,241
302,524
772,846

186,787
97,052283,839
937,842

233,125
82,952
316,078
1,088,925

254,259
224,259
4,372,694(812,506)
4,038,706

254,259
224,259
5,157,662(791,956)
4,844,223

4,230
4,042,937
4,980,780(5,386)(5,386)
6,522
4,845,360
5,934,285

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023(2)
Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income, Cumulative)(JPY in thousands)
Fiscal year ended
December 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Foreign exchange gains
Subsidy income
Royalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on reversal of share acquisition rights
Insurance claim income
Total extraordinary income
Extraordinary losses
Compensation for damage
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

Fiscal year ended
December 31, 2023

4,541,242
1,818,396
2,722,846
1,694,323
1,028,522

5,191,735
1,862,259
3,329,476
1,832,906
1,496,570

47
16,896
7,671
1,390
1,627
27,63372
16,86911,7401,660
54030,883448
448
1,055,708

1,527,453

4,743
4,743

19,00019,0001,060,451
371,708(35,497)336,210724,240
1,461
722,779

22,00022,0001,524,453
495,465(32,443)
463,022
1,061,431
2,291
1,059,140

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023(Consolidated Statement of Comprehensive Income, Cumulative）(JPY in thousands)
Fiscal year ended
December 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

10

Fiscal year ended
December 31, 2023

724,240

1,061,431-(5,386)724,240(5,386)
1,056,045

722,779

1,053,753

1,461

2,291

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023(3) Consolidated Statement of Changes in Equity
Fiscal year ended December 31,2022 (From January 1, 2022 to December 31,2022)(JPY in Thousands)
Shareholders’ equity

Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Disposal of treasury
sharesChange in scope of
consolidation
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at the end of
periodShare

CapitalRetained

Treasury

capitalsurplusearnings

shares3,844,949(818,446)

254,259

224,259

23,175254,259

224,259

Total
shareholders’equity

Share

Non-

acquisition

controllingrightsinterests

3,505,021

4,743

2,769

23,175

3,868,124(818,446)

Total net
assets3,512,533
23,175

3,528,196

4,743

2,769

3,535,708(232,041)(232,041)(232,041)

722,779

722,779

722,779

5,940

5,940

13,832

13,832

5,940
13,832(4,743)

1,461(3,281)--

504,569

5,940

510,509(4,743)

1,461

507,228

254,259

224,259

4,372,694(812,506)

4,038,706

-

4,230

4,042,937

Fiscal year ended December 31,2023 (From January 1, 2023 to December 31,2023)(JPY in Thousands)
Accumulated other comprehensive

Shareholders’ equity

Balance at beginningof period
Changes during
periodShare

CapitalRetained

Treasury

capitalsurplusearnings

shares254,259

224,259

4,372,694(812,506)

Dividends of surplus
Profit attributable toowners of parent
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
periodincomeTotal
shareholders’equityValuationdifference on
available-for-salesecurities

Total
accumulated
othercomprehensive
income4,038,706--

Noncontrollinginterests

4,230

Total net
assets

4,042,937(270,789)(270,789)(270,789)

1,059,140

1,059,140

1,059,140

17,166

17,166(3,383)

20,549(5,386)(5,386)

2,291(3,094)--784,967

20,549805,517(5,386)(5,386)

2,291

802,422

254,259

224,259

5,157,662(791,956)

4,844,223(5,386)(5,386)

6,522

4,845,360

11

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023(4)

Consolidated Statements of Cash Flows(JPY in thousands)
Fiscal year ended
December 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of software
Share-based payment expenses
Increase (decrease) in provision for shareawardsInterest and dividend income
Foreign exchange losses (gains)
Subsidy income
Insurance claim income
Compensation for damage
Interest expenses on borrowings and bonds
Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Subsidies received
Proceeds from insurance income
Interest paid
Compensation paid for damage
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of leasehold deposits
Proceeds from refund of leasehold deposits
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Dividends paid
Net cash provided by (used in) financing
activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period

12

Fiscal year ended
December 31, 2023

1,060,451
61,855
193,105-

1,524,453
45,181
212,564
2,525

29,07751,507(47)(16,896)(7,671)448(4,743)(107,514)(41,263)(143,221)
49,550(73,354)
999,77525
64,220(448)(369,723)(73)(16,869)(11,740)(19,000)
22,000(562,845)(23,182)(41,829)(38,410)
97,1371,241,418
28
19,000(22,000)(395,602)

693,848

842,844(156,000)
156,000(72,767)(240,633)(1,280)83,372
1,148(160,000)
156,000(28,697)(254,278)(10,213)277(23)(230,160)(296,937)

100,000(10,000)(232,020)(270,494)(142,020)(270,494)

321,668

275,413

2,045,974

2,287,747(79,895)-

2,287,747

2,563,160

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023(5)
Notes to the Consolidated Financial Statements(Notes on Going Concern Assumption): N/A(Changes in Accounting Policies)(Application of Guidance on Applying Accounting Standards for Fair Value Measurement)
We have applied the Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ
Guidance No. 31, June 17, 2021; hereinafter “Fair Value Accounting Standard Guidance”) from the beginning of
the current consolidated fiscal year. In accordance with the transitional treatment prescribed in paragraph 27-2 ofthe Fair Value Accounting Standard Guidance, we have decided to apply the new accounting policies prescribed in
the Fair Value Accounting Standard Guidance in the future. These changes have no impact on the consolidated
financial statements.
【Additional Information】(Accounting Treatment for Employee Stock Ownership Plan, J-ESOP）
At the Board of Directors meeting held on October 29, 2015, the Company resolved to adopt an employee stock
ownership plan (referred to as J-ESOP) as an incentive plan to grant Company shares purchased from the market toemployees in order to more closely link the Company’s share price and earnings with employee compensation andto boost the motivation and morale of employees to improve the share price and earnings by sharing the economic
benefits with shareholders.
Accordingly, Trust & Custody Services Bank, Ltd. (trust account E) (now Custody Bank of Japan, Ltd. (trust
account E)) acquired 194,200 shares of the Company’s stock between November 13, 2015 and November 26, 2015.
Regarding accounting treatment for the J-ESOP, we have applied the gross method to record trust assets andliabilities as corporate assets and liabilities on the consolidated balance sheet in accordance with the Practical
Solution on Transactions of Delivering the Company's Own Stock to Employees etc. through Trusts (PITF No. 30,
March 26, 2015).
The treasury shares held by Custody Bank of Japan, Ltd. (trust account E) is shown as treasury shares in the net
assets section of the quarterly consolidated balance sheet. The amount recorded at the end of the previous fiscal
year was ¥124,277 thousand and the number of shares was 161,100. The amount recorded at the end of the current
fiscal year was ¥119,108 thousand and the number of shares was 154,400.

13

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023【SEGMENT INFORMATION, etc.】(Segment Information)
1.
Overview of Reportable Segments
The Group's reportable segments are components for which discrete financial information is available and which
are subject to periodic review by the Board of Directors to determine the allocation of management resources andevaluate their performance.
From the current consolidated fiscal year, the Group has changed the reporting segment for the “Office System
Business” previously included in the “System Development Business”. Considering both quantitative and qualitative
significance for the future, we now report the segment separately. The reporting segments have been revised fromthe previous two divisions, “System Development Business” and “HealthTech Business”, to three divisions:“Medical Business”, “Public Business”, and “HealthTech Business”.
Please note that the segment information for the previous consolidated fiscal year is disclosed based on the reporting
segment division for the current fiscal year.
Description of reportable segments are as follows:(Medical Business)
Development and sales of medical software, consulting, accumulation and analysis of medical data
(Public Sector Business)
Development and sales of document management solutions(Health Tech Business)
Development and sales of medical devices, analysis of healthcare data2.
Calculation of Net Sales, Profit (Loss), Assets, and Other Items by Reportable Segments
The accounting method of the reported business segments is in accordance with the accounting policies adopted toprepare the consolidated financial statements. Profits of reportable segments are operating income-based figures.
Intersegment sales and transfers are based on prevailing market prices.
3.
Sales and Profit or Loss by Reportable Segments
Fiscal year ended December 31, 2022 (From January 1, 2022, to December 31, 2022)
Reportable segments
MedicalBusiness

PublicSectorBusiness

Health TechBusiness

Total(JPY in thousands)
Amount in the
consolidated
Adjustments
financial(Note1)statement(Note2)

Net sales
Sales for external
4,350,702
121,286
69,2534,541,242
4,541,242
customers
Internal sales ortransfers between
1,485
1,485
(1,485)segments
Total
4,352,187
121,286
69,2534,542,727(1,485)
4,541,242
Segment profit or loss
1,267,070(33,258)(205,288)
1,028,522
1,028,522
Segment assets
4,748,403
25,258207,118
4,980,780
4,980,780
Other
Depreciation
221,129
1,893
31,937
254,960
254,960
Increase in tangible and282,426
25,846308,273308,273
intangible assets(Notes) 1. Adjustments are derived from elimination of intersegment transactions.
2. Aggregated amount of segment income or loss equals amount of operating profit reported for consolidated
financial statements.

14

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023

Fiscal year ended December 31, 2023 (From January 1, 2023, to December 31, 2023)
Reportable segments
MedicalBusiness

PublicSectorBusiness

Health TechBusiness

Total(JPY in thousands)
Amount in the
consolidated
Adjustments
financial(Note1)statement(Note2)

Net sales
Sales for external
4,935,926
187,405
68,403
5,191,735
5,191,735
customers
Internal sales ortransfers between
segments
Total
4,935,926
187,405
68,403
5,191,735
5,191,735
Segment profit or loss
1,625,997
41,364(170,791)
1,496,570
1,496,570
Segment assets
5,505,533
163,936
224,305
2,893,775
3,040,510
5,934,285
Other
Depreciation
228,246
5,988
23,511
257,746
257,746
Increase in tangible and220,444
29,941
27,774
278,161
278,161
intangible assets(Notes) 1. Adjustments are corporate assets that have not been allocated to each reportable segments.
2. Aggregated amount of segment income or loss equals amount of recurring profit reported for consolidated
financial statements.
(Related information)
FY2022 (From January 1, 2022, to December 31, 2022)
1. Information by product/service
This information is omitted because the same information is disclosed in the segment information.
2. Information by region(1) Net sales
Sales to external customers in Japan are more than 90% of net sales in the consolidated statements of income,and information by region is omitted.
(2) Tangible assets
Tangible assets affiliated to Japan are more than 90% of tangible assets in the consolidated balance sheets, andinformation by region is omitted.
3. Information by major customer: N/A
FY 2023 (From January 1, 2023, to December 31, 2023)
1. Information by product/service
This information is omitted because the same information is disclosed in the segment information.
2. Information by region(1) Net sales
Sales to external customers in Japan are more than 90% of net sales in the consolidated statements of income,and information by region is omitted.
(2) Tangible assets
Tangible assets affiliated to Japan are more than 90% of tangible assets in the consolidated balance sheets, andinformation by region is omitted.
3. Information by major customer: N/A

15

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023(Information on amortization and unamortized balance of goodwill by reportable segment)
FY 2022 (From January 1, 2022, to December 31, 2022): N/A
FY 2023 (From January 1, 2023, to December 31, 2023): N/A(Information on gain on negative goodwill by reportable segment)
FY 2022 (From January 1, 2022, to December 31, 2022): N/A
FY 2023 (From January 1, 2023, to December 31, 2023): N/A(Information on impairment of non-current assets by reportable segment)
FY 2022 (From January 1, 2022, to December 31, 2022): N/A
FY 2023 (From January 1, 2023, to December 31, 2023): N/A

16

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023【Per Share Information】
Fiscal year ended December 31, 2022
Fiscal year ended December 31, 2023
(from January 1, 2022 to December(from January 1, 2023 to December
31, 2022)
31, 2023)
Net assets per share
157.63 yen
188.67 yen
Basic earnings per share
28.21 yen
41.31 yen
Diluted earnings per share(Notes) 1. No statement is indicated above for the number of diluted earnings per share for FY2022 because there
were no issuable shares with dilutive effects.
2. No statement is indicated above for the number of diluted earnings per share for FY2023 because there
were no issuable shares.
(Note): 3. Basis for calculation of basic earnings per share and diluted earnings per share is as follows:
FY2022
FY2023(As of Dec. 31, 2022)(As of Dec.31,2023)
Basic earnings per share
Profit attributable to owners of parent
722,779
1,059,140(Thousand yen)Amounts not attributable to commonshareholders (Thousand yen)
Profit attributable to owners of parent
722,779
1,059,140
related to common shares (Thousand yen)
Average number of common shares
25,617,486
25,637,246
outstanding during the period (Shares)
Diluted earnings per share
Adjustments stated for profit attributableto owners of parent (Thousand yen)
Increase in number of common shares(Shares)

-

-

-

-

5th series of stock acquisitionrights by resolution of theBoard of Directors meeting
Overview of dilutive shares that are notheld on February 25, 2020
included in the calculation of diluted
earnings per share as they have no dilutive
Number of share acquisition
effectsrights: 2,830
Common shares (share):283,000(Note): For the purpose of basic earnings per share and diluted earnings per share, the average number of theCompany's shares held by Japan Custody Bank, Ltd. (Trust Account E) during the previous consolidated fiscal year
and the current consolidated fiscal year are 164,939 shares and 157,082 shares, respectively.
【Significant Subsequent Event】: N/A

17

FINDEX Inc. (TSE 3649)
Financial Results for Q4FY2023

4.

Other
Our group has three reportable segments: Medical Business, Public Sector Business, and Health Tech Business.

Status of Productions, Orders and Sales
1) Actual result of production for FY2023
Reportable segments
Production

YoY (%)(JPY in Thousands)

Medical Business

1,411,824
73,155

Public Sector Business
Health Tech Business

107.8
114.7

150,086
Total
1,635,066(Note): Figures above is calculated by total manufacturing cost for the current fiscal year.
2) Status of orders for FY2023
Reportable segments
Order received

YoY (%)(JPY in Thousands)

Order backlog

92.1
106.4

YoY (%)(JPY in Thousands)

Medical Business
Public Sector Business

3,814,842
197,551

115.2
204.4

1,679,265
96,224

158.6
305.6

Health Tech BusinessTotal

58,643
4,071,037

48.8
115.3

13,918
1,789,408

58.9
160.7

3) Sales results for FY2023
Reportable segments

Sales amountYoY (%)(JPY in Thousands)

Medical Business
Public Sector Business
Health Tech Business
Total

4,935,926

113.4

187,405
68,403154.5
98.8

5,191,735

114.3

18