3649

Financial Results Briefing
FINDEX Inc.
Fiscal Year Ending December 2020 Financial Results
March,2020

FY2020 Financial ResultsOur Busines: Now and FutureHigh market share in large hospitals & stable sales and profits

Customizing
and deploying
high-performance
medical systems tolocal governments
and other entities

OfficeSystem
Document/
Workflow

MedicalSystem
HOSPITAL

Medical devices witha worldwide
perspective
Medical data x AI

HealthTech
Personal/
Business2

Corporate ProfileCompany Name

FINDEX Inc.

Representative

President & CEO Teruo Aibara

Head Office

Asahiseimei-Otemachi 2-6-1, Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan

TEL: +81-3-6271-8958

FAX: +81-3-6271-8959

Other Branch Offices

Shikoku, Osaka, Fukuoka, Sapporo, Naha, Niigata, Kyoto (starting April 1, 2021)

Subsidiary

Eagle Matrix Consulting Co. Ltd. ・ Fitting Cloud Inc.

URL

https://findex.co.jp/en/index.html

Capital

254 million yen

Employees

278（Consolidated: 285 As of December 2020）*includes 9 part-time (9 consolidated)
3

FY2020

Year to year Comparison (consolidated)◼ As feared in the two factors, the initial forecast for 2020 was severe, with adecrease in both sales and profits compared to the previous year, but throughefficient management, each profit far exceeded the budget.

• Decreased IT investment in clinics and delayed medical device production due to
COVID-19• 2020 was the gap in the system renewal cycle for large medical institutions（million yen）
FY2019Actual（consolidated)

FY2020
Actual（consolidated)

Year-on-year
ratio

Relative to budget(%)

4,281

4,004

93.5%

△4.9%

Operating Income

743636

85.6%

9.7%

Ordinary Income

746643

86.2%

10.4%

Profit Attributable toShareholders of Parent

499

430

86.2%

13.9%

Earning per Share (yen)

19.50

16.81

Net Sales－－4

Results by Segment (consolidated)（million yen）

Reportable Segment
SystemDevelopment

Health-tech
Business

Adjustment
(*1)

Total
（consolidated)
(*2)

3,983

21－

4,004

2-

△2－

Total

3,986

21

△2

4,004

Segment Profit or Loss（△）（operating income）

843△ 206－

636

Sales to external customer
Intersegment sales /transfer amount*1. Adjustment amount is due to elimination of intersegment sales*2. Segment profit or loss is matched with operating income in the consolidated
statement of income.

5FY2020

Outlook◼ Despite the situation caused by COVID-19, large medical
institutions have installed the system firmly without any delays.
New system installations and renewals were decided prior to theCOVID-19 pandemic, so there was no extremely large impact onsales in 2020.

◼ Both hospitals and municipalities were not in a situation toactively engage in sales activities, but the need for hospitalsystems remained steady with the With COVID-19 work style,and inquiries for municipal systems increased with the trend oftelework and paperless seals.
◼ As for the medical equipment, there was a significant delay inthe arrival of parts in China, and the market launch was delayedby more than a year, but we were able to move up the additional
research on the AI part that we had planned to do after thelaunch, so we were able to take our time in preparing.
6

FY2021 Full Year Outlook
Growth of new segmentson the background of stable growth
in medical system development

Initiative in 2020
Generate Steady Profit from HealthTech Business
Formed All Medical Systems into a CloudMedicalSystem・The fee for health care service (Medical department)
was increased in this year 2020.
⇨As a result of the spread of Covid-19, the existence of the system will change in the future.

・Formed all our products into a cloud・Selling quality monthly model system

HealthTech

・Scheduled to start selling GAP in March and launch thebusiness of visual field test officially・Enhancing the strategy which analyzing medical data
and assisting AI diagnosis⇨ Linking up with Fitting Cloud to develop a new business utilizing health dataOfficeSystem・Focus on “Selection and Concentration” to be utilized
limited resource maximumly
・Selling our office system efficiently by using existing
vender and medical institution user.
⇨For back office in hospital and mid-sized government
8

2021 Forecast (Consolidated）• 2021 will see a concentration of system renewals from large clients.
• Expected to start full-scale sales of GAP in March, with sales of 200 million-yen• Plans to establish two new offices and invest in business expansion over the next year
（million yen）

2020 Actual（Consolidated)
AmountNet Sales

2021 Forecast（Consolidated)
AmountYoY ratio4,004

4,600+14.9%

Operating Income

636

1,010

+58.7%

Ordinary Income

643

1,010

+57.0%

Profit Attributable to Owners ofParent

430

700

+62.6%

16.81

27.34

－

Interim Dividend (yen)

2.50

2.50

－

Year end Dividend（yen）

5.50

5.50

－

Full year Dividend（yen）

8.00

8.00

－

Earning per Share (yen)Dividend per Share (plan)

9

Net Sales, Ordinary Profit and Net Income Trends
FY 2021 Forecast

Net sales

4,600

Ordinary Profit（million yen）

4,281

Current Net Income+18.8％

4,000

4,004

3,603

3,311

+14.9％
△6.5％

+8.8％

+0.7％

COVID-19

COVID-19

Pandemic

Pandemic

2,000
Medical treatment fee wasincreased

0546

593

3663982017(Consolidated)

2018(Consolidated)

Medical treatment fee wasincreased

746

643

499

430

2019
(Consolidated)

2020(Consolidated)

1,010
700

2021
Forecast(Consolidated)※Medical treatment fee is revised every 2 years.
10Medical Market Size
Implementation rate at university hospitals becomes the benchmark
for FINDEX!

Total users 2,124

University Hospitals
Implemented hospitals/
public and private hospitals

116/149institutions*Please see our home page for user details.

Largehospitals*including branch hospitals

Medium-sizedhospitals

Large hospitals（More than 500 beds)

256／401 institutions
Medium sized hospitals（100~499 beds)

570／4,954 institutions
Small hospitals

Small hospitals /Clinics（20~99 beds)

132 ／ 2,945 institutions
Clinics
1,166／102,616institutions
Integrated community care product：18（As of end of December 2020）11

Sales by Product2021 Consolidated(Forecast)

2020
Consolidated
Claio
DocuMaker
C-ScanMoveBy

Net Sales

4,004 million yen
Direct sales 79.4%
Distributor 20.5%

Operating Income636 million yen

REMORA
Radiology
OEM
Maintenance
LicenseNet Sales

4,600million yen
Operating Income

1,010million yen

Hardware
OthersNon-medicalEMC

12

New service launched considered with Covid-19
Started providing web-based services for the cases wherepatients do not go to hospitals, such as online medical care.
Web communication tool for patients and hospitals- Patients can use the Internet to process and verify the information themselves- Hospitals automatically send information to patients about upcoming appointments andprecautions- Supporting two-way communication between large hospitals and patients to improve thequality of medical services

FAX sending and receiving management service- Frequent use of faxes for patient referrals in community collaboration and prescription
transmission in online medical care
- Manage faxes as data without printing them on paper and link them to patient IDs- Supporting the efficiency of sending and receiving faxes, reducing the burden on medical staff
and strengthening cooperation between facilities

DocuMaker Contents online publishing service- The latest forms for medical certificates and official documents created with the DocuMaker
document creation system are available online for speedy distribution- Reducing the burden of paperwork at medical institutions and contributing to a change in theworking style of medical institutions
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New Segment
Health Tech & Office system

Perimetry Business

Visual Field Test
Establishing a new method of visual field test,
aim for early detection of visual field abnormalities

and create new business by utilizing big data.

Roll out the business from two aspects
Development ofa perimetry system● Built the world’s first perimetry system● Enabling the test not only at medicalinstitutions but also at health checkupfacilities

Collect & analyze visual
field defects data
● Distribute our system as a free app● Gathering visual field defects data from allover the world● Use the data for disease prevention, drug
discovery, and health management
15Perimetry system with new test method GAP

16

1. Perimetry Test Device Market
Domestic market size of devices in Japan■ Medical checkup facility
Approximately 1,200 facilities
No initial cost/plan to sell on a per-test basis (physical checkup ver.)■ Hospital/Clinic
Approximately 6,000 facilities
＠￥3M ＝ Approximately ¥18 B（medical ver.)

Sales forecast based on the market share assumption in 5 years■ Medical checkup facility ¥600 M■ Hospital/Clinic¥3.6 BThe Overseas market size is assumed to be approx. 90 billion yen,just the medical institutions alone
Overseas sales are scheduled to begin in Europe during FY 2021.
17

2. Collection & analysis of visual field disease data & other markets
Collect Eye Healthy Data Using the App Version• An application has already been developed to check the eye healthy
condition using the basic principle of GAP. iOS/android• Achieve legal compliance and high security• Plans to expand cloud services in Japan and overseas by 2023

Expanded to brain disease, mental illness, dementia,
driving fitness test, etc.
Possibilities for GAP's Head Mounted Display Testing Device.
• Sophisticated gaze analysis using a built-in small high-speed camera• AI diagnosis is implemented based on test data of over 9,000 eyes

Expanding the market as a testing device other thana visual field-testing device, aiming for medicaldevice approval within a few years18

DocuMaker Office’s Markets
Mainly targeting local governments and medical
institutions where Documaker's strengths can be utilized.
Local gov. / public
service enterprise

Medical institutions
administrative department

in any department•

Electronic approval•

Bookkeeping managementetc.

(drafting, receipt registration, etc.)•••

Workflow
Contract management
Hospital evaluation correspondenceetc.

Electronic approval isrecommended by the state;more local gov. are adopting a system

Due to changes in hospitalfunction evaluation requirements, more
hospitals is undertaking document management

With the know how in medical field, webuilt a user-friendly system that isdifferent from other products

We support the hospital’s entire document
management by extending the system wellproven at clinical departments toadministrative department
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DocuMaker Office
Development for local governments and public service enterprises
Market・The national promotion of DX and telework is spreading to local governments
across the country.
⇒The need for electronic decision making is growing rapidly in local
governments and public service enterprises.

Our Advantage
・Product Strength：User-friendly, easy-to-understand system that utilizes
know-how accumulated in the medical field. Highly evaluated for its
flexibility to handle applications other than electronic decision making.
・Sales Force：Currently working with a distributor that has a nationwide sales
network. Since we have already established relationships with local
governments, we can conduct sales activities efficiently.
⇒Sales: distributors, products: FINDEX for an efficient business with aselected group.
20DocuMaker Office
Development for local governments and public service enterprises
Outlook・Autonomy: Lots of business negotiations until April 2022, and more businessnegotiations after that.
⇒ Enhance sales capability by acquiring new distributors and increase
cases by realizing introduction of distributors
・ Public enterprises : Several projects for 2021 are already in progress.
⇒ Build a successful case study and efficient implementation in a shortperiod of time using the cloud.

21

DocuMaker Office

Development for Medical institution

Market・In addition to improving business efficiency, COVID-19 will accelerate thereduction of contact opportunities and the promotion of telework.
⇒ The need for electronic approval and document management isincreasing.

Our Advantage・Reliability：Know-how and a solid performance cultivated in medical systems
・Functionality：Capable of handling not only general document creation andapplication, but also official document management＊Public hospitals and hospitals affiliated with independent administrative
agencies are obligated to manage public documents or to make efforts tomanage them.

⇒DocuMaker Office is the only document management system for
medical institutions that includes public document management.

Outlook・Large-scale project to start in January 2021 is in stable progress.
・Inquiries from many medical institutions⇒Actively developing sales together with medical treatment systems

22

News ReleaseEstablishment of a New Joint Venture Company
Established a new joint venture with Kyoto University's
business subsidiary, Kyoto University Original Co., Ltd.
Fitting Cloud Inc.
Information coordination
across hospitals
Management and analysisof medical data
New communication
between patients and hospitals

Kyoto University: Knowledge of laws and regulations related to

medicine, medical care, IT, and medical information
Findex: Knowledge of design, development, operation and managementof IT services
Develop new services in the cloud!
Selling to medical institutions, medical research institutions, universities
and other research organizations
24

Establishment of a New Joint Venture Company (Details)
Company Name

Fitting Cloud Inc.

Head Office85-1 Mikuracho, Karasuma-Nishiiru, Sanjo-dori, Nakagyo-ku, Kyoto city

Representative

President & CEO Teruo Aibara（Dual role with FINDEX Inc.）

Capital Contribution FINDEX：70％

Kyoto University Original：30％

Payment Date

March 15, 2021（Scheduled date）

Establishment Date

April 1, 2021（Scheduled date）

Accounting Period

March 31

Business start Date

April 1, 2021（Scheduled date）

Fitting Cloud is with its technological strength, advanced features, andalliances with various research and development institutions
It aims to be a platform company that contributes to various R&D beyond
the medical and Health tech fields.
25Capital alliance signed with CROSS SYNC Inc.

Founded in 2019, the venture company originated fromYokohama City University and has strong relationships
with the university and university-affiliated hospitals.
Bringing together numerous doctors and medical
professionals, as well as some of the greatest AI
Healthengineers in Japan.
TechThe company develops and provides iBSEN, a medical
data integration and analysis system equipped with AI
that predicts the severity of illness in intensive care units.

MedicalSystem

Proposing a wide range of solutions for medical
fields in Japan and overseas by utilizing
FINDEX's medical information systems andhealth solutions and CROSS SYNC's expertise in
medical data analysis
26

Investment in Digital Entertainment Asset Pte.Ltd

A Singapore-based blockchain entertainment business witha worldwide presence.
The company has developed and operated "PlayMining", acombination of proprietary cryptocurrency (DEAPcoin) andentertainment, which is already being used in over 100countries.

HealthTech

Enhance product capabilities by leveraging DEA'sexperience and expertise in supporting blockchain
entertainment, as well as its advanced technical skills
in managing cryptographic assets and information, forthe management of medical and healthcare data,
where data management security is of utmost
importance, and creating new synergies.
27

New Products

AI Video Analysis：Child Nap Monitoring System「BABY-MONI」

Installing a camera on the ceiling & Checking
Sleeping position by using AI⚫ Check multiple children at the same time with a single camera⚫ No need to install or remove, set up or clean up⚫ No risk of accidental ingestion

BabyTech® Award Japan 2020 powered by DNP Dai Nippon Printing Co., Ltd.
Received the Excellence Award in the Safety Measures and Monitoring Category

EMC Healthcare

29

“Wellness Passport” Health management services for COVID 19 prevention
Contactless Health Check & Identity Confirmation⚫ Each participant registers and manages his or herown health data in advance.
⚫ At the event day, participants will be able to scan
the QR code to confirm their identity and recent
health data and take their temperature withoutcontact.
Possible usage scenarios• Sports and various event operators• Restaurant and tourist industry• Retailers• Local governments, etc.
With COVID-19 and After COVID-19, supporting
health management in public places＊Used at the Kujukuri Triathlon on October 11, 2020.
EMC Healthcare

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3649

Progressive Software Creators
Always have, Always will.