Consolidated Financial Results [Japanese GAAP]
for the First Quarter of the Fiscal Year Ending December 31, 2022
May 12th, 2022

FINDEX Inc
Stock code:
3469
Stock Exchange Listing:
URL:
http://findex.co.jp/en/index.html
Telephone:
Representative: Teruo Aibara, President & CEO
For inquiries:
Atsushi Fujita, Director and Head of Administration
Scheduled date to submit statutory quarterly financial report:
Scheduled date of starting payment of dividend:
Availability of supplementary explanatory material on quarterly results:
Quarterly results briefing:Tokyo+81-89-947-3388

May 12, 2022
N/A
N/A
N/A

1. Consolidated Financial Results for the Three Months Ended March 31, 2022 (From January 1, 2022, toMarch 31, 2022)*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 income
attributableto owners
Revenue
Operating income
Ordinary incomeof the parent
company(JPY MM)%(JPY MM)%(JPY MM)%(JPY MM)%FY2022 1Q
1,264 (13.5)
370 (17.9)
381 (15.8)
258 (17.7)
FY2021 1Q
1,462 (10.3)
451 (30.7)
452 (30.7)
314 (29.8)(Note) Comprehensive income: FY2022 1Q: 261 million yen [(16.9%)], FY2021 1Q: 314 million yen [(29.8％)]
Basic earnings
per share

Diluted earnings
per share

(JPY)
(JPY)
FY2022 1Q
10.10
FY2021 1Q
12.28(Note) No statement is indicated above for the number of diluted EPS because there were not any financial
instruments which has dilutive effect on common stocks outstanding.
(2) Consolidated Financial Position
Total assets
Net assets
Net assets ratio
As of the end of（JPY MM）（JPY MM）％
FY2022 1Q
4,565
3,642
79.6
FY2021 4Q
4,556
3,512
76.9
(Ref.) Equity amount: FY2022 1Q: 3,632 million yen, FY2021 4Q: 3,505 million yen.

BPS（Book-value
Per Share）（JPY）
141.83136.84

2. Dividends
1st quarter（JPY）

Annual cash dividends per share
2nd quarter3rd quarter
Year-end
（JPY）
（JPY）
（JPY）
2.50
6.00
－

Total
（JPY）
8.50

6.50

9.50

FY2021 4Q－
ended Dec. 31, 2021
FY2022 1Q－
ended Mar.31, 2022
FY2022 4Q
ending Dec. 31, 2022
3.00－
(forecast)(Note) Revisions to the dividends forecast since the latest announcement: None

- 1 -

3. Forecast for the Fiscal Year Ending December 31, 2022 (From Jan. 1, 2022, to Dec.31, 2022)* 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 income
Operating
Ordinary
attributable
to Basic Earnings
Revenue
IncomeIncomeowners of the
Per Share
parent company(JPY MM)%(JPY MM)%(JPY MM)FY2022 2Q
1,953 (18.8)
136 (72.2)
137(cumulative)
FY2022 4Q
4,937 (0.6)
1,085
17.8
1,091
(full year)(Note) Revisions to the forecast since the latest announcement: None

- 2 -

%

(JPY MM)%(JPY)(72.9)

82(75.9)

3.20

15.5

716

12.6

27.96

※ 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) Simplified Accounting Procedures and Specific Accounting Procedures: None
(3) Changes in Accounting Policies and Accounting Estimates(i) Changes in accounting policies as required by newly promulgated account pronouncement: Yes(ii) Changes other than (i) above: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(Note)For more detailed illustration, please refer to “2. Quarterly Consolidated Financial Statements and Notes (3)Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)” on page 12 of theattached document.
(4) Number of Shares Outstanding (Ordinary Shares)

Number of shares outstanding at the end of theperiod (treasury shares included)
Number of treasury shares at the end of theperiodFY2022 1Q(As of Mar. 31, 2022)

FY2021 4Q(As of Dec.31, 2021)

26,608,800

26,608,800

994,375

995,175

FY2022 1Q
FY2021 1Q(From Jan.1, 2022,(From Jan.1,2021,
to Mar. 31, 2022)
to Mar. 31, 2021)
25,614,142
25,605,789
Average number of shares during 1Q(Note) The average number of treasury shares held by Japan Custody Bank, Ltd. (Trust Account E), which isdeducted from the average number of shares during the period, includes 176,636 shares during FY2021 1Q
and 168,283 shares duringFY2022 1Q.
* This quarterly financial results report is out scope of the quarterly review by a certified public accountant nor
audit firm.
* Explanation on appropriate use of performance forecasts and other special notes.
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.

- 3 -Table of Contents
1. Status of the Group(1) Business Overview and Results for the First Fiscal Quarter……………………………………….…...
(2) Explanation on the Financial Position ………………………………………………………………….
(3) Explanation on Future Performance Forecast ………………………………………………………….
2. Quarterly Financial Statements and Notes

588(1) Quarterly Consolidated Balance Sheet ………………………………………………………………… 9(2) Quarterly Consolidated Statement of Income and Comprehensive Income
Quarterly Consolidated Statement of Income, Cumulative…………………………………………… 10
Quarterly Consolidated Statement of Comprehensive Income, Cumulative …………………………. 11(3) Notes to Quarterly Consolidated Financial Statement
Note on Going Concern ………………………………………………………………………………. 12
Note on Significant Change in Equity Capital ………………………………………………………... 12
Changes in Accounting Policies ………………………………………………………………………. 12
Additional Information ………………………………………………………………………………..
Segment Information etc.………………………………………………………………………………
Revenue Recognition ………………………………………………………………………………….
Significant Subsequent Event………………………………………………………………………….

12
13
14
15

3. Supplementary Information ………………………………………………………………………………. 16- 4 -1. Status of the Group(1) Business Overview and Results for the First Fiscal Quarter
The Group addresses wide range of medical industry needs and develops the best-in-class and highly scalable
integrated medical solutions, from comprehensive medical systems to medical equipment, and delivers to large
hospitals and small- and medium-sized healthcare organizations nationwide. Also, leveraging our technologies andreputation, the Group also proposes and implements our office systems to ministries, local governments, and public
corporations. Further, unlocking the future, the Group has already embarked on emerging area, such as health techand medical cloud computing.
Due to the impact of the novel coronavirus (hereafter referred to as “COVID-19”) pandemic, utilization ofInformation and Communication Technology (hereafter, referred to as “ICT”) and artificial intelligence (hereafter,
referred to as “AI”), non-contact medical care has been more widespread than ever, including the online diagnoses
and the medical robots.
In addition, as the Japanese government has taken strategic actions to redress the long working hours which
healthcare professionals has been struggling with and to establish medical service infrastructure toward the equityof access to health care, all citizens have access to the health service they need, when and where they need them,
the healthcare organizations are further encouraged and expected to adopt the state-of-the-art healthcare IT systems
as a means of achieving those goals through increased efficiency, enhanced workflows, easier coordination, andimproved access to medical information, accelerated by cloud-native smart health data service for digital healthdevelopment.
In this business environment, revenue was 1,264,576 thousand yen for the first quarter (January 1, 2022, toMarch 31, 2022), a decrease of 13.5% compared to the same period of previous fiscal year. Operating income
decreased by 17.9% to 370,449 thousand yen, ordinary income decreased by 15.8% to 381,314 thousand yen, andnet income attributable to owners of the parent decreased by 17.7% to 258,717 thousand yen, respectively.
Compared to the annual forecast, the progress of first quarter was 25.6% for revenue, 34.1% for operating
income, 35.0% for ordinary income, and 36.1% for net income attributable to shareholders of the parent company,
respectively.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020.) has been
applied from the first quarter of the current fiscal year and the impact of the on the quarterly consolidated financial
statements was not material.
For more detailed illustration, please refer to “2. Quarterly Consolidated Financial Statements and Notes (3)Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies) and (Segment
Information) 2. Matters regarding the change in the reporting segments, etc.”
The COVID-19 pandemic and efforts to control its spread have had a significant, ongoing adverse impact on
economic activities and daily life as well as the Group’s operations and the operations of the Group’s healthcare
clients.
One of the reasons for the FY20221Q revenue decline is that while demand for system upgrades remained stable,
because our hospital and other healthcare provider clients have understandably prioritized their resources, capacity
and staff as the COVID-19 outbreak continues to strain their organizations, the prolonged outbreak of COVID-19 ischanging healthcare organizations' willingness to system investment and their acceptance of new systems.
If any changes in performance are expected, we will appropriately disclose them in a timely manner.
The Group’s employees are a significant and precious asset, human capital, and the Group recognizes that they
are inevitable to the Group’s continued success. The Group aims to create an inclusive, respectful, and open work
environment and culture comprised of talented employees of diverse backgrounds.
Aligning with this principle and aim, as the Group’s internal initiatives, the Group relocated its Tokyo head officein April 2022. Also, as a digital transformation (hereafter, referred to as “DX”) promoting company, the Group has
established a working environment that accommodates more diverse working styles by setting work-from-homepolicy as permanent, which had been a temporary measure, in order further to attract, motivate and retain talented
people at all levels and to enhance employee wellbeing. In the Group’s efforts to foster ESG management, theGroup conduct “as is” analysis, and discuss the “to be” ESG structure that we should aim for. We will fulfill oursocial responsibility as a company that helps healthcare organizations advance the quality and efficiency of theirhealthcare and achieve people's healthier life. Built on our philosophy “as an R&D-driven company, continues topursue new ideas and technologies, toward prosperous society”, we will continuously take thorough measures toprevent infection throughout the Group and ensure the safety of our stakeholders.

- 5 -(JPY in Thousands)(a)Revenue by Business Segments
Business segment
System development
Healthtech

FY2021 1Q

FY2022 1Q

Change (amount)

Change (%)

1,449,510

1,221,921(227,588)(15.7％)

13,914

43,39729,482211.9％(JPY in thousands)(b)Operating Income by Business Segments
Business segment

FY2021 1Q

FY2022 1Q

Change (amount)

Change (%)

System development

495,197

413,895(81,301)(16.4％)

Healthtech(43,943)(43,446)--≪System Development Business≫
Operating results of the system development business were revenue of 1,221,921 thousand yen (down 15.7%
year-on-year) and segment income (operating income) of 413,895 thousand yen (down 16.4% year-on-year) ,respectively.
〇 Medical System
The Group is a leading company of healthcare information technology solutions and services and offers a wide
range of intelligent solutions and tech-enables services. Amongst of them, “Claio”, image management system, “CNote”, medical record system, and “DocuMaker”, document management system, are flagship solutions and havemaintained a high reputation and stable market share in large healthcare organizations. Healthcare professionals
can be provided insights to improve healthcare quality, with more complete picture of a patient’s long-term
medical experience, rather than seeing individual events such as a single diagnosis or treatment plan. As core
infrastructure system, we have become deeply embedded in the day-to-day operations of healthcare organizations,and our fit-for-purpose solutions are indispensable to such organizations that provide advanced medical care.
During this quarter, we have been continuously gaining shares, and13 hospitals and 17 clinics newly adopted,
augmented, or updated our solutions, resulting in cumulative revenue of 1,195,549 thousand yen.
In this fiscal year, we will focus on sales of packaged products to our existing customers, and simultaneously
work on profitability improvement by launching sales of “Claio” and “C-Note” in India and other countries in
ASEAN region jointly with our new strategic business partner Toyota Tsusho Corporation (“Toyota Tsusho”, Head
Office: Aichi Prefecture).
Fitting Cloud Inc., the Group subsidiary which delivers cloud-enabled solutions, offered cloud resources using
GCP (Note 1) during this quarter and built a cloud infrastructure for the medical data collection project promotedby the Japan Agency for Medical Research and Development (AMED) and academic societies. In addition, seizing
its future-growth opportunities, we are developing a cloud-based EDC (Electronic Data Collection) system and a
cloud-based virtual browsing environment.
(Note 1) GCP: Google Cloud Platform, cloud computing service provided by Google Inc.
〇 Office System
In this segment, we deliver “DocuMaker Office”, document management system, to affiliated organizations ofministries and local governments. Spurred by DX acceleration, the Group has been receiving a lot of inquiries fromthose potential clients and, some negotiations are under way, with several pipelines.
Sales of this product have been steady to the target for this fiscal year, with 12 new or additional installations
during the first quarter of this consolidated fiscal year, resulting in cumulative revenue of 26,371 thousand yen.
Currently, the implementation processes have been ongoing at two ministry affiliated organizations. We haveestablished trusted relationship by our proven abilities and solutions, and highly reputed for “Close on-site
engagement with clients, with high consulting skills to identify issues and propose precise solutions” and “HighUser Interface /User Experience, easy-to-use system from the user’s perspective”, and we have been steadily- 6 -winning several large-scale projects. We will continuously make proposals and accelerate digitalization not only of
local governments, but also of independent administrative agencies and foundations who have been facing issues
similar to those of local governments. In the medical field, we also expect high demand, especially from large andmedium-sized healthcare organizations, which are our existing users, and we have received many inquiries about
this cloud-based service that supports the back-office operations.
≪Healthtech≫Operating results of the Healthtech segment were revenue of 43,397 thousand yen (up 211.9% year-on- year) andsegment loss (operating loss) of 43,446 thousand yen (segment loss of 43,943 thousand yen for the comparable
previous quarter of FY2021), respectively.
〇 Gaze Analyzing PerimeterIn this segment, we focused our efforts on domestic sales and on strategy formulation of overseas sales expansion
on our GAP (Note 2), a Gaze Analyzing Perimeter. The GAP is an affordable, but breakthrough head-mounted
wearable device that contributes to the early detection of retina diseases such as glaucoma. This solution eliminates
the need for a dark room, which was formerly needed for exam, shortening exam time and reduces the patient’s
burden.
Furthermore, by promoting the use of this solution at comprehensive medical exams and healthcare organizations,and by collecting visual field data, contribution to the technological and solution innovation, in various fields suchas pharmaceuticals and life insurance, can be expected, because scientists and doctors will be able to conduct datadriven analysis and develop actionable insights.
In Japan, this perimeter has already been introduced to 16 medical organizations, including university hospitals.
The same has also been loaned to healthcare organizations, on a free-of -charge basis, and a usage-based-rate basis,
allowing examinees to choose the visual field test as an optional item.
With Toyota Tsusho, the Group has reached an agreement to collaborate, with a view to accelerate adoption byhealthcare organizations nationwide.
In our initiative to further harness overseas footprints, at university hospitals in two EU countries (the Netherlands
and Belgium), solution testing is underway, bottlenecked by time-consuming regulatory approval process.
Innovating healthcare, additionally, the Group has been continuously conducting joint research with Kyoto
University, further expedited, and motivated by the discovery that our solution could provide objective values tohelp to understand the symptoms of disorders and is effective for detecting not only visual field abnormalities but
also MCI (early-stage dementia).
Japan Agency for Medical Research and Development (“AMED”) adopted, in its FY2021 Artificial Intelligence
Implementation Research Project for Medical Engineering Collaboration, “the R& D of a screening program forslight cognitive dysfunctions, utilizing digital phenotyping of gaze point response and eyeball movements”.
Innovative medical devices will be introduced over the next several years. To accelerate our successful growth, wewill continue to engage in R& D from various perspectives, in order to solve many of the problems faced by the
aging society.
(Note 2) GAP is abbreviation of Gaze Analyzing Perimeter (Notification No. of medical device manufacturing
and sales 38B2X10003000002)
The followings are initiatives by the Group’s subsidiary, EMC Healthcare Co.ltd〇 Midday Nap Monitoring System
In the area of digital, data and AI powered image analysis, the Company delivers "Baby moni," a monitoring
system designed to support observation and recording during midday nap time (Note 3). This solution is driven by
AI to analyze camera images, enabling simultaneous monitoring of several infants sleeping in bed.
In addition to sales in the Tokyo metropolitan area, we launched nationwide sale campaign last fiscal year andhave been establishing a nationwide sales track record. In October 2021, we have introduced the next-generation
model, adding on functionality of sensing the indoor environment during nap time, aiming to further add value by
acquiring and analyzing more data than ever before.

- 7 -(Note 3) Midday nap: Infants’ midday nap at nursery school〇 Nursing Care DX Services
In nursing care field, we are developing a new product, “OwlCare”, a DX service. In today's nursing facilities,
there is an urgent need to both reduce the nighttime workload such as patrolling and watching over residents and to
improve the staff shortage and quality of nursing care. By integrating various sensors and nurse call systems
through this product, it is possible to reduce the workload of staff while keeping an eye on residents' healthconditions.
At the same time, the system will contribute to solving management issues such as securing care staff andefficient staffing. OwlCare" is a product that brings together the sensor technology, camera technology, image
analysis technology, AI and data analysis technology, and other technologies that EMC Healthcare has nurtured.
In November 2021, at Japan's first Age-Tech 2021 Awards, held under the auspices of the Ministry of Health,Labour and Welfare, the Ministry of Economy, Trade and Industry, the Ministry of Education, Culture, Sports,
Science and Technology, and the Japan Society for the Promotion of Science, this solution received an excellence
award in recognition of its innovative efforts to contribute to workload savings at nursing facilities. Development isunder steady progress, with field demonstrations beginning this fiscal year.

(2) Explanation on the Financial Position
Status of Assets, Liabilities, and Net assets
Total assets at the end of the first quarter amounted to 4,565,528 thousand yen, an increase of 8,965 thousand yen
from the end of the previous fiscal year. This was primarily due to an increase of 10,593 thousand yen in current
assets, which is mainly composed of a decrease of 343,693 thousand yen in notes receivable, accounts receivableand contract assets and an increase of 353,764 thousand yen in cash and deposits.
Liabilities amounted to 922,566 thousand yen, a decrease of 121,462 thousand yen from the end of the previous
fiscal year. This was primarily due to a decrease of 178,964 thousand yen in current liabilities, which is mainlycomposed of an increase of 100,000 thousand yen in short-term loans payable, and a decrease of 174,509 thousand
yen in accounts payable-trade and a decrease of 86,090 thousand yen in income taxes payable.
Net assets amounted to 3,642,961 thousand yen, an increase of 130,428 thousand yen from the end of theprevious fiscal year. This was primarily due to an increase in shareholders' equity of 127,815 thousand yen
resulting from an increase in retained earnings.

(3) Explanation on Future Performance Forecast
The consolidated performance forecasts for the second quarter (cumulative) and the full year ending December
31, 2022, have already incorporated the impact of the COVID-19, at the time of the announcement of the full-year
financial results on February 9, 2022, and have been unchanged ever.
We will disclose any expected changes in our business results, in a timely manner, which might be derived from,such as harbinger of COVID-19 pandemic calming down, and resurgence of new system accommodation byhealthcare organizations.

- 8 -2. Quarterly Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(JPY in Thousands)
FY2021 4Q(As of Dec. 31, 2021)
ASSETS
CURRENT ASSETS:
Cash and deposits
Note and account receivable
Note and account receivable– trade, and contract assets
Inventories
Work in process
Materials and supplies
Other current assets
Total current assets
NON-CURRENT ASSETS:
Tangible assets
Intangible assets
Software
OthersTotal intangible assets
Investments and other assets
Total non-current assets
TOTAL ASSETSLIABILITIESCURRENT LIABILITIES:
Accounts payable
Short-term borrowings
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:
Provision for stock compensation
Other long-term liabilities
Total long-term liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Stock subscription rights
Non-controlling interests
TOTAL EQUITYTOTAL LIABILITIES and NET ASSETS- 9 -FY2022 1Q(As of Mar.31,2022)

2,171,974
1,218,805

2,525,739--

875,112

123,858
16,492
142,988
31,481
3,705,601

129,6192,598
145,096
38,0283,716,194

71,25672,897

238,600
344
238,944
540,760
850,961
4,556,563

236,277
344
236,621539,814849,333
4,565,528

223,627
20,00098,621
223,933
259,544825,726

49,118120,000
117,284
137,842
222,516
646,762

163,649
54,653
218,303
1,044,029

163,483
112,320
275,804
922,566

254,259
224,259
3,844,949(818,446)
3,505,021
4,743
2,769
3,512,533
4,556,563

254,259
224,259
3,972,148(817,829)
3,632,837
4,743
5,381
3,642,961
4,565,528

(2) Quarterly Consolidated Statement of Income and Comprehensive Income(Quarterly Consolidated Statement of Income, Cumulative)（JPY in Thousands）

Revenue
Cost of revenue
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gain
Subsidy income
Royalty income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Total non-operating expenses
Ordinary income
Income before income taxes
Income tax -current
Income tax -deferred
Total income taxes
Quarterly net income
Quarterly net income attributable tononcontrolling interests
Quarterly net income attributable to owners of theparentFY2021 1Q(From Jan. 1, 2021,
to Mar. 31, 2021)
1,462,682
612,067
850,615399,361
451,254

FY2022 1Q(From Jan. 1, 2022,
to Mar. 31, 2022)
1,264,576
473,564
791,011420,562
370,449

9
1,390
324
1,724

9
7,400
1,743
1,390
393
10,936452,978
452,978
136,1212,465
138,587
314,391

72
72
381,314
381,314
127,738(7,754)
119,984
261,330-

2,612

314,391

258,717- 10 -

(Quarterly Consolidated Statement of Comprehensive Income, Cumulative）（JPY in Thousands）

Quarterly net income
Quarterly comprehensive income
attributable to owners of parent
attributable to non-controlling interests

FY2021 1Q(From Jan. 1, 2021,
to Mar. 31, 2021)
314,391
314,391
314,391-- 11 -FY2022 1Q(From Jan. 1, 2022,
to Mar. 31, 2022)
261,330
261,330
258,7172,612

(3) Notes to Quarterly Consolidated Financial Statement(Note on Going Concern): N/A(Note on Significant Change in Equity Capital): N/A(Changes in Accounting Policies): Application of accounting standard for revenue recognition
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020. Hereinafterreferred to as the "Accounting Standard for Revenue Recognition”) has been applied from the beginning of the firstquarter of the current fiscal year, and revenue is recognized at the amount expected to be received in exchange forthe promised goods or services when control of the promised goods or services has been transferred to thecustomer.
As a result of this change, after reviewing the identification and satisfaction of performance obligations, theCompany has decided to recognize revenue over a certain period of time for some software development andsystem sales projects, whereas it had previously recognized revenue at a single point.
The Company has followed the transitional treatment prescribed in the provision of Paragraph 84 of the
Accounting Standard for Revenue Recognition, and the cumulative effect of retrospective application of the new
accounting policy prior to the beginning of the first quarter of the current fiscal year has been included in retained
earnings at the beginning of the first quarter of the current fiscal year. The impact of the on the quarterly
consolidated financial statement was not material.
Due to the application of Accounting Standard for Revenue Recognition "notes and accounts receivable," which
was included in "current assets" in the consolidated balance sheet for the previous fiscal year, is included in "notes,
accounts receivable and contract assets" in the consolidated balance sheet for the first quarter of the current fiscal
year. In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Accounting Standard for
Revenue Recognition, no reclassification has been made to reflect the new presentation for the previous
consolidated fiscal year.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019), etc, have been
applied since the beginning of the first quarter of the current consolidated fiscal year. In accordance with thetransitional treatment prescribed in Paragraph 19 of the “Accounting Standard for Fair Value Measurement” andParagraph 44–2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019),
the Company has decided to apply the new accounting policies set forth by the Accounting Standard for Fair Value
Measurement, etc. in the future. These changes had no impact on the Company’s quarterly 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 introduce the "employee
stock ownership plan (hereafter referred to as “J-ESOP”)," an incentive plan to provide employees with ownershipinterest (stock) of the Company purchased from the market. The purpose of this incentive plan is to further
correlate the Company's stock price and performance with the treatment of employees, further sharing economic
benefits with shareholders, and to increase employees' motivation and morale toward the stock price andperformance enhancement.
In accordance with this introduction, Trust & Custody Services Bank, Ltd. (Trust Account E) (currently 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.
For accounting treatment of J-ESOP, the gross method is applied to record the assets and liabilities of the trust as
corporate assets and liabilities in the consolidated balance sheets, in accordance with the " Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts" (Practical Issues Task
Force No. 30, issued on March 26, 2015).
Treasury stock held by Custody Bank of Japan; Ltd. (Trust Account E) is presented as treasury stock in the net
assets section of the quarterly consolidated balance sheets. The amount recorded at the end of the previous fiscal
year was 130,217 thousand yen and the number of shares was 168,800. The amount recorded at the end of the firstquarter of the current fiscal year was 129,600 thousand yen and the number of shares was 168,000.

- 12 -

【SEGMENT INFORMATION, etc.】(Segment Information)
1. Sales and Income or Loss by Reportable Segment
FY2021 1Q (From January 1, 2021, to March 31, 2021)
Reportable segment
Systemdevelopment

Healthtech

Sub total(JPY in thousands）
Reported
amount for
Adjustment
consolidated(Note1)
financialstatements(Note 2)

Sales
Sales for external
1,448,767
13,914
1,462,682
1,462,682
customers
Internal sales ortransfers between
742
742
(742)
segments
Total
1,449,510
13,914
1,463,424(742)
1,462,682
Segment income or
495,197(43,943)451,254451,254
loss(Note) 1. Adjustments are derived from elimination of intersegment transactions.
2. Aggregated amount of segment income or loss equals amount of ordinary income reported forconsolidated financial statements.
FY 2022 1Q (From January 1, 2022, to March 31, 2022)
Reportable segment
Systemdevelopment

Healthtech

Sub total（JPY in Thousands）
Reported
amount for
Adjustment
consolidated(Note1)
financialstatements(Note 2)

Sales
Sales for external
1,221,178
43,397
1,264,576
1,264,576
customers
Internal sales ortransfers between
742
742
(742)
segments
Total
1,221,921
43,3971,265,318
1,264,576(742)
Segment income or
413,895(43,446)
370,449
370,449
loss(Note) 1. Adjustments are derived from elimination of intersegment transactions.
2. Aggregated amount of segment income or loss equals amount of ordinary income reported forconsolidated financial statements.
2. Matters regarding the change in the reporting segments, etc.
As stated in the "Changes in accounting policies" section of this report, from the beginning of the first quarter ofthe current fiscal year, the Company has applied the "Accounting Standard for Revenue Recognition", etc. andchanged its accounting method for revenue recognition, and the measurement of income in the reporting segments
has been changed in the same way.
The impact of this change on " Sales to external customers" and "Segment income (loss)" for each reportablesegment for the first quarter of the consolidated fiscal year was not material.

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(Revenue Recognition)
The Group's revenues are primarily derived from revenues recognized from contracts with customers, and thefollowing information breaks down the Group's reportable segments by the timing of revenue recognition and typesof services.
FY 2022 1Q (From January 1, 2022, to March 31, 2022)（JPY in Thousands）
Reportable segment
System development
Healthtech
Timing of revenue recognition
Revenue recognized at apoint in time
Revenue recognized over a
period of time
Total

Total

861,224

43,397

904,622359,953-

359,953

1,221,178

43,397

1,264,576（JPY in Thousands）
Reportable segment
System development
Healthtech
Segment, solution, channel
SoftwareHardwareSupport etc.
Other
Total

772,915
41,515
406,746
1,221,178- 14 -

43,39743,397

Total
772,915
41,515
406,746
43,397
1,264,576

(Significant Subsequent Event)（Strategic Alliance with Toyota Tsusho）
At an extraordinary meeting of the Board of Directors held on May 6, 2022, the Company resolved to enter into a
strategic partnership agreement with Toyota Tsusho regarding medical information system business and health techbusiness and entered into the agreement on the same date.
(1) Reasons for AllianceWith our goal of "Toward better health and wellbeing of all people" we have delivered a lot of healthcareorganizations with integrated digital solutions, which realize their centralized management and effective utilizationof test data and document data. Also, leveraging our nurtured technology and trust, we, ourselves, invented,
developed, manufactured, and sold gaze analyzing perimeter which adopts a completely new testing principle.
Towards better society, at such a momentous time, we are committed to improve the convenience and efficiencyof medical exam at healthcare organizations overseas, as well as early detection of optical diseases, and educational
activities in Japan, in collaboration with Toyota Tsusho, who has built up relationships of trust through their wide
variety of businesses around the world.
(2) Area of Alliance
The Company and Toyota Tsusho will cooperate under an exclusive sales agreement mainly for the following
solutions.
(i) Overseas sales of medical information solutions
As the geographical strategies, we will sell medical information platform, mainly our flagship product "Claio"(image filing system), to key healthcare organizations in India and the ASEAN region. We will establish a cordial
support system in collaboration with local medical system companies to ensure efficient and sustainable delivery of
our product and service. In June 2022, we introduce Claio, on a trial basis, to Sakra World Hospital in India, which
Toyota Tsusho has its investment stake, and begin test operations.
With a population of over 1.3 billion, the healthcare market of India has an unprecedented scalability, and at thesame time, there remain a lot of issues that can be ameliorated by DX. Addressing challenges to solve issues out
there, we will contribute to the realization of a sustainable society by improving the quality of medical care and theefficiency of hospital management.
(ii) Introduction of "GAP-screener" (gaze analyzing perimeter/regulatory product) to health checkup facilities in
Japan
GAP-screener", which was commercialized for optional use during health checkups, will be introduced to domestic
health checkup facilities and multiphasic health screening facilities under Toyota Tsusho's sales strategy. This
product is our original invention, darkroom-free, objective optical testing device.
By permanently exhibiting this solution other than ophthalmology facilities, more convenient testing will beenabled, leading to the early detection of glaucoma. We will also utilize the visual field data obtained through thetest, for various possibilities in future research and development in the medical field, such as the establishment of
new treatment methods.
(3) Outlook
The impact of this strategic alliance on our performance is currently under inspection, we believe that this alliancewill significantly contribute to our corporate value enhancement in the medium to long term. In a timely manner, we
will appropriately announce any matters that should be disclosed.

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3. Supplementary Information(1) Transition of Significant Financial Key Performance Indicators(JPY in thousands, except per share amounts)
FY2021 1Q
FY2022 1Q
FY2021 4Q（Cumulative）
1,462,682
1,264,576

Net sales
Operating income
Ordinary income
Net income
Net income attributable to owners of the non-controllinginterests
Net income attributable to owners of the parent company
Comprehensive income
Net assets
Total assets
BPS (Book-value Per Share)

451,254452,978
314,391

370,449
381,314
261,330

920,720944,593635,796

-

2,612

(230)

314,391

258,717

636,027

314,391
3,247,107
4,028,385
126.81

261,330
3,642,961
4,565,528
141.83635,7963,512,533
4,556,563
136.84

12.28

10.10

24.84

EPS (Earnings Par Share)(2) Production, Order, Sales
1) Actual Result of Production for FY2022 1Q (Cumulative Amount)
Business segment
Production (JPY in Thousands)
System development
341,672
Healthtech
50,908
Total
392,580(Note) Figures above is calculated by total manufacturing cost for the current quarter.
2) Order Status for FY2022 1Q (Cumulative Amount)
Order received
Business segment
YoY (%)(JPY in Thousands)
System development
672,460
64.5
Healthtech
15,17089.7
Total

687,631

4,968,885

64.9

YoY (%)

Order backlog(JPY in Thousands)
350,191
1,332
351,523

86.9
112.7
89.5

YoY (%)
38.5
38.73) Sales Result for FY2022 1Q (Cumulative Amount by Segment, Solution, and Channel)
Sales amount
Segment, solution, channel
Ratio (%)
YoY (%)(JPY in Thousands)
System development
Software772,915
61.1
90.4(of via sales agent）（229,057）
Hardware41,5153.3
45.6(of via sales agent）（4,779）Support etc.
407,48932.2
80.9
Healthtech
43,3973.5
311.9
Adjustments（Note）
(742)
(0.1)
Total
1,264,576
100.0
86.5
(Note) Adjustments are derived from elimination of intersegment transactions.

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