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 Three Months Ended March 31, 2023
May 11, 2023
Listed company:
FINDEX Inc.
Stock Exchange Listing:Tokyo Stock Exchange
Stock code:
3649
URL:
http://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 to submit statutory quarterly financial report:
May 11, 2023
Scheduled date to commence dividend payment:
N/A
Availability of supplementary materials on financial results:
Yes
Availability of quarterly results briefing:No
1. Consolidated Financial Results for the Three Months ended March 31, 2023
(From January 1, 2023, to March 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 attributable toowners of the parent(JPY MM)%(JPY MM)%(JPY MM)%(JPY MM)%
Three months ended
March 31, 2023
1,251 (1.0)
288 (22.2)
292 (23.4)
199 (22.9)
March 31, 2022
1,264 (13.5)
370 (17.9)
381 (15.8)
258 (17.7)(Note) Comprehensive income: Q1 FY2023: 203 million yen [(22.0%)], Q1 FY2022: 261 million yen [(16.9％)]

Basic earnings per share Diluted earnings per share
Three months ended
(JPY)
(JPY)
March 31, 2023
7.78
March 31, 2022
10.10
(Notes) 1. No statement is indicated above for the number of diluted EPS for Q1 FY2022 because there were noissuable shares with dilutive effects.
2. No statement is indicated above for the number of diluted EPS for Q1 FY2023 because there were noissuable shares.
(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
As of（JPY MM）（JPY MM）%（JPY）
March 31, 2023
4,933
4,080
82.5
158.92
December 31, 2022
4,980
4,042
81.1
157.63(Ref.) Equity amount: Q1 FY2023: 4,072 million yen, Q4 FY2022: 4,038 million yen
2. Dividends
1st quarter
（JPY）
－
－

Annual dividends per share
2nd quarter3rd quarter
Year-end
（JPY）
（JPY）
（JPY）
3.00
－
6.50

Total
（JPY）
9.50

7.00

11.00

Year ended December 31, 2022
Year ending December 31, 2023
Year ending December 31, 2023
4.00－
(Forecast)(Note) Revisions to the dividends forecast since the latest announcement: None1

3. Consolidated Financial Forecasts for the Fiscal Year Ending December 31, 2023 (From Jan. 1, 2023, toDec.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
Net income
OperatingRecurring
attributableto
Basic earnings
Net sales
profitprofitowners of theper share
parent(JPY MM)%(JPY MM)%(JPY MM)Six months ending
2,145 (4.0)
322 (29.3)
329
June 30, 2023
Fiscal year ending
5,065
11.5
1,313
27.7
1,330
December 31, 2023
(Note) Revisions to the forecast since the latest announcement: None%

(JPY MM)%(JPY)(31.6)

228(28.7)

8.90

26.0

923

27.7

36.03

*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) Application of Specific Accounting for Preparing the Quarterly Consolidated Financial Statements: None
(3) 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 “2. Quarterly Consolidated Financial Statements andSignificant Notes Thereto (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting
Policies)” on page 11 of the attached document.
(4) Number of Shares Outstanding (Common Shares)
As of March 31, 2023
Number of shares outstanding at the endof the period (treasury shares included)
Number of treasury shares at the end of
the period

As of December 31, 2022

26,608,800

26,608,800

985,575

987,475

Three months ended
March 31 2023

Three months ended
March 31 2022

Average number of shares during theperiod (cumulative from the beginning
25,622,619
25,614,142of the fiscal year)(Note) The number of treasury shares at the end of the period includes our shares held by Custody Bank ofJapan, Ltd. (Trust Account E) (159,200 shares for Q1 FY2023, 161,100 shares for FY2022). Our shares heldby Custody Bank of Japan, Ltd. (Trust Account) are included in the treasury stock deducted in thecalculation of the average number of shares during the period (159,806 shares for Q1 FY2023, 168,283
shares for Q1 FY2022).
* 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.

2

Attached Material
Index
1. Qualitative Information on Quarterly Consolidated Financial Results……………………………………. 4(1) Explanation on Operating Results………………………………………………………………….…... 4(2) Explanation on Financial Position ……………………..………………………………………………. 7(3) Explanation on Consolidated Earnings Forecasts and Other Forward-looking Statements……………. 7
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto
8(1) Quarterly Consolidated Balance Sheet ………………………………………………………………… 8(2) Quarterly Consolidated Statements of Income and Comprehensive Income ………………………….. 9
Quarterly Consolidated Statement of Income, Cumulative…………………………………………… 9
Quarterly Consolidated Statement of Comprehensive Income, Cumulative …………………………. 10(3) Notes to the Quarterly Consolidated Financial Statements…………………………………………….. 11
Notes on Going Concern Assumption …………………………..……………………………………. 11
Notes on Significant Change in Equity Capital ……………………………………………………... 11
Changes in Accounting Policies …………..…………………………………………………………. 11
Additional Information ……………………………………………………………………………….. 11
Segment Information etc.……………………………………………………………………………… 12
Significant Subsequent Events...………………………………………………………………………. 12
3. Supplementary Information ………………………………………………………………………………. 13

3

1. Qualitative Information on Quarterly Consolidated Financial Results(1) Explanation on Operating Results
Momentum is growing in the healthcare industry for improved operations and changes to how information ishandled. Changes to the systems for reimbursing medical treatment fees, nursing care fees, and disability
welfare service fees are slated to take effect from April 2024 in what is known as the “triple” amendments.
Ahead of these amendments, we think discussions in 2023 will gain considerable momentum around thecreation of a nationwide medical information platform, the standardization of information in electronic healthrecords, and the digital transformation (DX) of medical fee reimbursements. DX measures have become
indispensable to collaborating with each medical institution, care facility, and community, and to improving
operational efficiency. Steps are also being taken to make medical practice operations more efficient, and at thesame time, ensure that patients can benefit from higher quality healthcare services.
We also recognize that the business environment has changed significantly following the COVID-19
pandemic. The way organizations view investments in systems in the medical field has changed. In addition toinvestments in systems for improving the working styles of physicians and medical professionals, there appears
to be an increase in investments in operation systems designed to coordinate patient traffic. And there is anincreasingly stronger investment appetite for diagnostic support systems equipped with more advanced
technology.
The Group is continuing to expand sales of existing products and is actively working to develop and roll out
new cloud-based services.
The consolidated financial results for the three months ended March 31, 2023 are as follows.
(JPY in thousands)
Three months
Three months
ended March 31,
ended March 31,
Change (amount)
Change (%)
2022
2023
Net sales
1,264,576
1,251,802(12,773)(1.0%)
Operating profit
370,449
288,325(82,124)(22.2%)
Recurring profit
381,314292,219(89,094)(23.4%)
Profit attributable to258,717
199,428(59,289)(22.9%)
owners of the parent
In the first three months of the fiscal year ending December 31, 2023 (January 1, 2023 to March 31, 2023),
consolidated net sales were ¥1,251,802 thousand (-1.0% YoY), operating profit was ¥288,325 thousand(-22.2%), recurring profit was ¥292,219 thousand (-23.4%), and profit attributable to owners of the parent was¥199,428 thousand (-22.9%).
In the first quarter of the current fiscal year, net sales were more or less flat year on year, and profit on alllevels decreased. This is mainly due to a shift in the timing of sales recognition for the application of the
Accounting Standard for Revenue Recognition from the fiscal year ended December 31, 2022.
Due to the accounting standard change, ¥35 million of sales and ¥29 million of operating profit in the firstquarter of the fiscal year ended December 31, 2022 were booked as net sales and operating profit in the previous
quarter. On the other hand, ¥251 million of sales and ¥210 million of operating profit in the first quarter of the
fiscal year ending December 31, 2023 were booked as net sales and operating profit in the previous quarter.
Considering the impact of the above and the status of orders received, earnings are essentially in good shape.
Sales growth and profitability are being maintained and we believe we are on track to achieving our full-yeartargets.
In terms of progress, net sales are at 24.7% of the full-year target, operating profit is at 22.0%, recurring profit
is at 22.0%, and profit attributable to owners of the parent is at 21.6%.
Consolidated results by segment for the first three months of the current fiscal year are as follows.
From the first quarter of the fiscal year we reorganized our reportable segments into the following threesegments: Medical Business, Public Sector Business, and the Health Tech Business. To enable year-on-yearcomparisons, results from the first quarter of the fiscal year ended December 31, 2022 have been restated under
the new segments.

4≪Medical Business≫(JPY in thousands)

Net sales
Operating profit

Three months
ended March 31,
2022
1,195,549
426,374

Three months
ended March 31,
2023
1,179,454
297,732

Change (amount)(16,095)(128,642)

Change (%)(1.3%)(30.2%)

Mainstay products in the Medical Business segment include the data management software Claio, the progressnote system C-Note, and the document management software DocuMaker. These flagship products are rated
highly in large hospitals that provide sophisticated healthcare services and therefore command a stable share of
the market. As core hospital systems, they play integral roles essential to the delivery of medical care.
In the first quarter we focused on sales of packaged products to both existing and new customers in Japan. As
a result, 19 hospitals and 22 clinics newly installed, added on, or updated our systems.
In the first three months of the current fiscal year, consolidated net sales in this segment were ¥1,179,454
thousand (-1.3% YoY) and operating profit was ¥297,732 thousand (-30.2%). The decline in sales and profit
owes to the aforementioned change in accounting standard and we believe earnings to be solid with no majorchanges in net sales and profit trends.
Fitting Cloud Inc., a subsidiary mainly engaged in the provision of cloud solutions, endeavored to bring online
and stabilize operations of a cloud platform for Medical Avenue, a next-generation patient guidance app for use
at general hospitals that it launched in earnest in January 2023. Also, in March 2023 it started providing a cloud
platform for the electronic tracing report service AAdE-Report.
≪Public Sector Business≫(JPY in thousands)

Net sales
Operating profit or loss

Three months
ended March 31,
2022
26,371(12,479)

Three months
ended March 31,
2023
35,616
3,908

Change (amount)
9,244
16,387

Change (%)
35.1%-

The Public Sector Business segment was established this fiscal year, having been carved out from adepartment within the Medical Business segment.
In this segment, we mainly sell DocuMaker Office, an archive management and digital approval system, tomostly government ministries and agencies, local governments, public corporations and medical institution thatcan leverage its powerful features. The adoption of e-approval and document management systems is
accelerating on the back of the government’s push for DX, which in turn is leading to a rise in enquiries about,and negotiations for, the installation of packages for government offices and also medical institutions.
Regarding packages sold to local governments, during the first quarter we completed an installation andreplacement project for an extra-governmental organization affiliated with the Tokyo Metropolitan Government.
That brought the cumulative number of package installations to 24. As for packages for medical institutions to
be used by medical administration departments, we have continued to expand sales in earnest from FY2022,
targeting mainly large and mid-sized hospitals, our existing user base. Cumulative installations through to thefirst quarter now total five.
As a result of the above, in the first three months of the current fiscal year, consolidated net sales in thissegment were ¥35,616 thousand (+35.1% YoY) and operating profit was ¥3,908 thousand (a return toprofitability from the year-earlier operating loss of ¥12,479 thousand). In this segment we have launched a SaaS
(software-as-a-service) business. We therefore anticipate profit growth generated by the buildup of monthly
service fees as the number of existing users increases in the future.
For local government packages, we are currently focusing our sales activities on large projects andemphasizing project scale rather than simply increasing the number of projects, as a way to build a track record
with a view to expanding sales up ahead. In addition, in order to considerably increase the number of projects at
local governments throughout Japan from next fiscal year onwards, we are focusing on strengthening the sales
capabilities of distributors and signing up new ones. Considering that our high-level consulting skills and useroriented, user-friendly solutions have a strong reputation, we hope to gain many more contracts going forward.
For medical institution packages, spurred by the government’s promotion of DX, we have fielded a large

5number of enquiries from medical institutions that are considering the adoption of a document management
system centering on the management of hospital rules and various manuals in order to comply with Japan’s
hospital function evaluation system. The adoption of our solutions not only improves the cumbersome
management of hospital documents, but it also means we can propose ways for it to be used based on actual
circumstances. Moreover, we can contribute to more efficient administration by providing thoroughgoingsupport after installation.
≪Health Tech Business≫(JPY in thousands)

Net sales
Operating loss

Three months
ended March 31,
2022
43,397(43,446)

Three months
ended March 31,
2023
36,731(13,315)

Change (amount)(6,665)30,130Change (%)(15.4%)-In the Health Tech Business segment, we are ramping up sales, in Japan and overseas, of our gaze analyzing
perimeter, or GAP for short. The 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 thatlack 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 the examination time and alleviating the burden on the patient.
Moreover, by promoting the use of the GAP at facilities that conduct medical exams and health checkups, earlystage retinal disease patient data can be shared with R&D centers in Japan and overseas with the potential for it tocontribute to the innovation of technology and solutions in numerous fields, including pharmaceuticals and life
insurance. We are stepping up sales of GAP-screener to nationwide health checkup facilities in collaboration with
Toyota Tsusho Corporation (headquartered in Aichi Prefecture). There were 11 domestic shipments of this productin the first quarter of the current fiscal year.
As a result of the above, in the first three months of the current fiscal year, consolidated net sales in this segment
were ¥36,731 thousand (-15.4% YoY). We recorded an operating loss of ¥13,315 thousand, versus the year-earlier
operating loss of ¥43,446 thousand. Net sales 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.
We also continue to undertake initiatives with a view to expanding overseas. Through one of our sales
distributors Rexxam Co., Ltd. (headquartered in Osaka), we exhibited the GAP at the MIDO Eyewear Show in
Italy and at the APAO® 2023 Congress held in Malaysia. Even though the response from healthcare professionals
attending these events was positive, we are aiming to ship products in earnest only after we have improved theinterface so as to ensure examinations can be conducted smoothly in countries with different healthcare systems.
We are also working to acquire pharmaceutical regulatory approval in India.
In addition, because the product can be used to detect not only visual field abnormality, but also MCI (mildcognitive impairment), 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 andimplementation of artificial intelligence. We continue to pursue R&D together with Kyoto University. Over the
next few years, we expect new medical devices will be introduced to the medical frontline.
(Note 1) Gaze Analyzing Perimeter, GAP (Notification No. of medical device manufacturing and sales
38B2X10003000002)(Note 2) Gaze Analyzing Perimeter, GAP-screener (Notification No. of medical device manufacturing and sales
38B2X10003000003)(Note 3) 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. Also called mild cognitive
impairment.

6(2) Explanation on the Financial Position
Status of Assets, Liabilities, and Net assets
AssetsLiabilities
Net Assets

As of December 31, 2022
4,980,780
937,842
4,042,937

As of March 31, 2023
4,933,646
852,882
4,080,764(JPY in Thousands)
Change in Amount(47,133)(84,960)
37,827

Total assets at the end of the first quarter amounted to ¥4,933,646 thousand, a decrease of ¥47,133 thousand fromthe end of the previous fiscal year. This was mainly due to a decrease of ¥38,575 thousand in current assets,
primarily owing to a decrease of ¥100,100 thousand in notes and accounts receivable–trade, and contract assets,
which outweighed an increase of ¥55,268 thousand in cash and deposits.
Liabilities amounted to ¥852,882 thousand, a decrease of ¥84,960 thousand from the end of the previous fiscal
year. This was primarily attributable to a decrease of ¥82,582 thousand in current liabilities, mainly due to adecrease of ¥141,970 thousand in income taxes payable, which outweighed increases of ¥4,528 thousand inaccounts payable and ¥33,100 thousand in accrued expenses.
Net assets amounted to ¥4,080,764 thousand, an increase of ¥37,827 thousand from the end of the previous fiscal
year. This was mainly due to an increase in shareholders’ equity of ¥33,308 thousand by virtue of an increase inretained earnings.
(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements
Our consolidated results forecasts for the first six months of the fiscal year ending December 31, 2023, alongwith our full-year forecasts, remain unchanged (previously announced in FY2022 consolidated financial results on
February 13, 2023).
Even though the Group currently does not meet the Prime Market’s continued listing criteria of a tradable sharemarket capitalization of more than ¥10 billion, in order to deepen understanding about our growth strategy andearnings, from this fiscal year we will endeavor to further strengthen investor relations mainly by presenting results
briefing materials particularly to individual investors. Further, we will aim to improve our corporate value by
disclosing information in an appropriate and timely manner.
At the same time, we are beefing up our sustainability initiatives. We became a member of the Japan Climate
Initiative (JCI), and as we did last year, we intend to submit a response to the Carbon Disclosure Project (CDP). In
April we shortened our scheduled working hours and took steps to improve the quality of life of employees by
establishing a workplace environment with more options for employees, such as fully remote employment forworkers living in remote regions of Japan or overseas. In addition, we are pressing ahead with initiatives in linewith the action plan we formulated based on the Act on Promotion of Women’s Participation and Advancement in
the Workplace. We announced our support of the “My Declaration of Human Rights” campaign set up by the
Ministry of Justice, and we are also actively responding to initiatives in Japan and overseas concerning theprotection of human rights and environmental conservation, including our support of the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD).

7

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheet(JPY in Thousands)
As of Dec. 31, 2021
ASSETS
CURRENT ASSETS:
Cash and deposits
Notes and accounts 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
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:
Provision for stock-based compensation
Other long-term liabilities
Total long-term liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Stock acquisition rights
Non-controlling interests
TOTAL EQUITYTOTAL LIABILITIES and NET ASSETS

8

As of Mar.31,2022

2,413,747

2,469,015

1,361,258

1,261,157

165,417
3,975
146,61237,291
4,128,302

190,088
3,124
145,948
20,392
4,089,727

103,287

105,787

251,005344
251,349
497,839
852,477
4,980,780

252,156344
252,501
485,631
843,919
4,933,646

81,209142,630
227,529
202,633
654,00285,737
175,73185,558224,392
571,420

186,787
97,052283,839
937,842

185,60395,858281,461
852,882

254,259
224,259
4,372,694(812,506)
4,038,706
4,230
4,042,937
4,980,780

254,259
224,259
4,404,537(811,040)
4,072,015
8,749
4,080,764
4,933,646

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income, Cumulative)（JPY in Thousands）
For the three months ended For the three months ended
March 31, 2022
March 31, 2023
Net Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest profit
Foreign exchange gain
Subsidy income
Royalty income
Miscellaneous income
Total non-operating profit
Non-operating expenses
Interest expenses
Total non-operating expenses
Recurring profit
Profit before income taxes
Income taxes -current
Income taxes -deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of the parent

9

1,264,576
473,564
791,011420,562
370,449

1,251,802
537,011714,790
426,465
288,325

9
7,400
1,743
1,390
393
10,936

22
830
1,283
1,660
97
3,894

72
72
381,314
381,314
127,738(7,754)
119,984
261,330
2,612
258,717292,219292,219
79,1599,112
88,272203,947
4,518
199,428

(Quarterly Consolidated Statement of Comprehensive Income, Cumulative）（JPY in Thousands）
For the three months ended For the three months ended
March 31, 2022
March 31, 2023
Quarterly net income
Quarterly comprehensive income(Breakdown)
attributable to owners of the parent
attributable to non-controlling interests

10261,330
261,330

203,947
203,947

258,717

199,428

2,612
2,612

4,518
4,518

(3) Notes to the Quarterly Consolidated Financial Statements(Note on Going Concern Assumption): N/A(Note on Significant Change in Equity Capital): N/A(Changes in Accounting Policies)(Application of Accounting Standard 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 first quarter of the fiscal year. In accordance with the transitional treatment prescribed in paragraph 27-2 of the
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 had no impact on 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 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 stock 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 firstquarter of the current fiscal year was ¥122,811 thousand and the number of shares was 159,200.

11

【SEGMENT INFORMATION, etc.】(Segment Information)
1. Sales and Income or Loss by Reportable Segment
Q1 FY2022 (From January 1, 2022, to March 31, 2022)
Reportable segment
MedicalBusiness

PublicSectorBusiness

Health TechBusiness

Sub total(JPY in thousands）
Reported
amount for
Adjustment consolidated(Note1)
financialstatements(Note2)

Net sales
Sales for external
1,194,807
26,371
43,397
1,264,576
1,264,576
customers
Internal sales ortransfers between
742
742
(742)
segments
Total
1,195,549
26,371
43,3971,265,318(742)
1,264,576
Segment profit or loss
426,374(12,479)(43,446)
370,449
370,449(Notes) 1. Adjustments are derived from elimination of intersegment transactions.
2. Aggregated amount of segment income or loss equals amount of recurring profit reported for consolidated
financial statements.
Q1 FY2023 (From January 1, 2023, to March 31, 2023)
Reportable segment
MedicalBusiness

PublicSectorBusiness

Health TechBusiness

Sub total(JPY in thousands）
Reported
amount for
consolidated
Adjustment
financialstatements(Note)Net sales
Sales for external
1,179,454
35,61636,7311,251,802
1,251,802
customers
Internal sales ortransfers between
segments
Total
1,179,454
35,61636,7311,251,802
1,251,802
Segment profit or loss
297,732
3,908(13,315)
288,325
288,325（Note）Aggregated amount of segment income or loss equals amount of recurring profit reported for consolidated
financial statements.
2. Matters regarding the change in the reporting segments, etc.
From the first quarter of the current fiscal year, the Company has changed its form of reporting for the "Office
System", which was formerly included in the "System Development", as a reportable segment considering its
forthcoming quantitative and qualitative importance. The Company has changed the reportable segments from two
divisions which were "System Development" and "Health Tech", to three divisions which are "Medical Business","Public Sector Business", and "Health Tech Business."
The segment information for the first quarter of the previous consolidated fiscal year is disclosed based on theclassification of reportable segments of the first quarter of the current consolidated fiscal year.
(Significant subsequent events)
There are no significant subsequent events to be disclosed.

13

3.

Supplementary Information(1) Transition of Significant Financial Key Performance Indicators(JPY in thousands, except per share amounts)
Three months ended Three months ended
Fiscal year ended
March 31, 2022
March 31, 2023
December 31, 2022
Net sales
1,264,576
1,251,802
4,541,242
Operating profit
370,449
288,325
1,028,522
Recurring profit
381,314292,219
1,055,708
ProfitProfit attributable to owners of the noncontrolling interests
Profit attributable to owners of the parent
Comprehensive income
Net assets
Total assets

261,330

203,947

724,240

2,612

4,518

1,461

258,717
261,330
3,642,961
4,565,528

199,428
203,947
4,080,764
4,933,646

722,779
724,240
4,042,937
4,980,780

141.8310.10

158.92
7.78

157.63
28.21

Net assets per share
EPS (Earnings Per Share)(2) Production, Order, Sales
1) Actual Result of Production for Q1 FY2023 (Cumulative Amount)
Business segment
Production (JPY in Thousands)
Medical Business
404,845
Public Sector Business
13,536
Health Tech Business
33,081

YoY (%)
124.8
78.1
65.0

Total
451,463(Note) Figures above is calculated by total manufacturing cost for the current quarter.
2) Order Status for Q1 FY2023 (Cumulative Amount)
Order received
Business segment
YoY (%)(JPY in Thousands)
Medical Business
782,288
123.0
Public Sector Business
3,466
9.4
Health Tech Business
13,10086.4
Total
798,854
116.2

Order backlog(JPY in Thousands)
1,029,093
12,2901,041,384

3) Sales Result for Q1 FY2023 (Cumulative Amount by Segment, Solution, and Channel)
Sales amount
Segment, solution, channel
Ratio (%)(JPY in Thousands)
Medical Business
Software686,50954.8(of via distributors)（187,695）
Hardware81,0606.5(of via distributors)（3,974）
Support371,220
29.7
Others40,664
3.2
Public Sector Business
35,616
2.8
Health Tech Business
36,7313.0
Total
1,251,802
100.0

13

115.0

YoY (%)
334.9
28.6
296.2

YoY (%)

92.0
195.3
111.0
55.7
135.1
84.6
99.0