Consolidated Financial Results [Japanese GAAP]
for the Third Quarter of the Fiscal Year Ending December 31, 2022
November 10th, 2022
FINDEX Inc
Stock code:3649
Stock Exchange Listing:
Tokyo
URL:
https://findex.co.jp/en/index.html
Telephone:+81-89-947-3388
Representative: Teruo Aibara, President & CEO
For inquiries:
Atsushi Fujita, Director and Head of Administration
Scheduled date to submit statutory quarterly financial report:
November 10, 2022
Scheduled date of starting payment of dividend:
N/A
Availability of supplementary explanatory material on quarterly results:
N/A
Quarterly results briefing:
N/A
1. Consolidated Financial Results for the Nine Months Ended September 30, 2022 (From January 1, 2022,
to September 30, 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 3Q
2,999 (14.6)
488 (30.6)
523 (27.4)
349 (27.9)
FY2021 3Q
3,513
18.4
703
38.3
721
40.4
485
41.6
(Note) Comprehensive income: FY2022 3Q: 351 million yen [(27.5%)], FY2021 3Q: 484 million yen [41.3%]
Basic earnings
per share

Diluted earnings
per share

(JPY)
(JPY)
FY2022 3Q
13.65
FY2021 3Q
18.95(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 3Q
4,236
3,673
86.5
FY2021 4Q
4,556
3,512
76.9
(Ref.) Equity amount: FY2022 3Q: 3,664 million yen, FY2021 4Q: 3,505 million yen.

BPS（Book-value
Per Share）（JPY）
143.04136.84

2. Dividends
1st quarter（JPY）

2nd quarter
（JPY）
2.50

3rd quarter（JPY）－

FY2021－
ended Dec. 31, 2021
FY20223.00－－
ended Dec. 31, 2022
FY2022 4Q
ending Dec. 31, 2022
(Forecast)(Note) Revisions to the dividends forecast since the latest announcement: None

Year-end
（JPY）
6.00

Total
（JPY）
8.50

6.50

9.50

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 4Q
4,937
(0.6)
1,085
17.8
1,091
(Full year)(Note) Revisions to the forecast since the latest announcement: None

%

15.5

(JPY MM)

716

%

12.6

(JPY)

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 9 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 3Q(As of Sep. 30, 2022)

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

26,608,800

26,608,800

988,675

995,175

FY2022 3Q
FY2021 3Q(From Jan.1, 2022,(From Jan.1,2021,
to Sep. 30, 2022)
to Sep. 30, 2021)
25,616,320
25,607,236
Average number of shares during 3Q(Note) The number of treasury stock at the end of the period includes our shares held by Japan CustodyBank, Ltd. (Trust Account E). (162,300 shares for FY2022 3Q, 168,800 shares for FY2021 4Q)
Also, our shares held by Japan Custody Bank, Ltd. (Trust Account E) are included in the treasury stock
deducted in the calculation of the average number of shares during the period. (166,105 shares for FY2022
3Q, 175,189 shares for FY2021 3Q)* 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.

Table of Contents
1. Status of the Group(1) Business Overview and Results for the Third Fiscal Quarter………………………………….…......
(2) Explanation on the Financial Position ………………………………………………………………….
(3) Explanation on Future Performance Forecast ………………………………………………………….
2. Quarterly Financial Statements and Notes255(1) Quarterly Consolidated Balance Sheet …………………………………………………………………
(2) Quarterly Consolidated Statement of Income and Comprehensive Income
Quarterly Consolidated Statement of Income, Cumulative……………………………………………
Quarterly Consolidated Statement of Comprehensive Income, Cumulative ………………………….

6(3) Notes to Quarterly Consolidated Financial Statement
Note on Going Concern ……………………………………………………………………………….
Note on Significant Change in Equity Capital ………………………………………………………...
Changes in Accounting Policies ……………………………………………………………………….

7
8
9
9
9

Additional Information ……………………………………………………………………………….. 9
Segment Information etc.……………………………………………………………………………… 10
3. Supplementary Information ……………………………………………………………………………….

- 1 -

11

1. Status of the Group(1) Business Overview and Results for the Second 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 positioning
university hospitals as our lead users, we deliver to large hospitals and small- and medium-sized healthcareorganizations nationwide. Also, leveraging our technologies and reputation, we propose and implement our officesystems to ministries, local governments, and public corporations. Further, unlocking the future, we have alreadyembarked on emerging area, such as health tech and medical cloud computing.
Healthcare organizations have been forced to transform in the face of the novel coronavirus (hereafter referred toas “COVID-19”) pandemic and its widespread ramifications and challenges it poses. Utilization of Information andCommunication Technology (hereafter, referred to as “ICT”) and artificial intelligence (hereafter, referred to as“AI”), non-contact medical care has been escalating at a frenetic pace, including the online diagnoses and the
medical robots.
We’ve witnessed incredible technological advances in medical industry and the solutions that support it, and as
the Japanese government’s designation that year 2022 as the year of medical Digital Transformation(hereafter,
referred to as “DX“), announcing that industry, government, and academia will work together to make great strides
in digitizing medical data and to promote the utilization of medical big data, initiatives are gaining momentum inthis area toward, such as harnessing real-world evidence that boost medical qualities and outcomes. Accordingly,
the healthcare organizations are further encouraged and expected to adopt the state-of-the-art medical IT systems.
In this business environment, revenue was 2,999,658 thousand yen for the third quarter (January 1, 2022, toSeptember 30, 2022), a decrease of 14.6% compared to the same period of previous fiscal year. Operating income
decreased by 30.6% to 488,177 thousand yen, ordinary income decreased by 27.4% to 523,386 thousand yen, andnet income attributable to owners of the parent decreased by 27.9% to 349,751 thousand yen, respectively.
Compared to the annual forecast, the progress of third quarter was 60.8% for revenue, 45.0% for operating
income, 48.0% for ordinary income, and 48.8% 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 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 impact on economic activities
and daily life as well as our operations and the operations of our healthcare clients. While demand for system
upgrades remained stable, nonetheless, as the COVID-19 outbreak strained their organizations, the prolonged
outbreak of COVID-19 has changed healthcare organizations' willingness to system investment and theiracceptance of new systems. On the positive side, as the risk of hospitalizations and deaths from COVID-19
thankfully decline, people are moving on from COVID-19 and returning to their normal, pre- COVID life. Morepeople support loosening or ending government mandated COVID-19 restrictions, such as shorter segregation
period for infection and without-mask life.
We have been fostering our efforts to enhance ESG and SDGs management, from two dimensional approach:business segment and daily activities. In concrete, we have been conducting “as is” analysis, and discussing the “tobe” ESG structure that we should aim for. As one of our initiatives, we actively respond to the Carbon Disclosure
Project (CDP).
Also, we progressively correspond to worldwide initiatives on human rights and environment protections, suchas an announcement of “Human Rights Declaration” promulgated by Ministry of Justice, and approving Task Forceon Climate-related Financial Disclosures (TCFD).
We will fulfill our social responsibility as a company that helps healthcare organizations advance the quality andefficiency of their healthcare and achieve people's healthier life. Built on our philosophy “as an R&D-driven
company, continues to pursue new ideas and technologies, toward prosperous society”, we will continuously takethorough measures to prevent infection throughout us and ensure the safety of our stakeholders.

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

FY2021 3Q

FY2022 3Q

Change (amount)

Change (%)

3,482,853

2,936,807(546,046)(15.7％)

33,04564,336

31,291

94.7％(JPY in Thousands)(b)Operating Income by Business Segments
Business segment

FY2021 3Q

FY2022 3Q

Change (amount)

Change (%)

System development

862,611650,873(211,738)(24.5％)

Healthtech(159,173)(162,696)--≪System Development Business≫
Operating results of the system development business were revenue of 2,936,807 thousand yen (down 15.7%
year-on-year) and segment income (operating income) of 650,873 thousand yen (down 24.5% year-on-year),respectively.
〇 Medical System
We are a leading company of medical information technology solutions and services and offers a wide range ofintelligent solutions and tech-enabled services. Amongst of them, “Claio”, electronic image filing system, “CNote”, electronic medical record system, and “DocuMaker”, document management system, are flagship solutions
and have maintained a high reputation and stable market share in large healthcare organizations. Healthcare
professionals can be provided insights to improve medical quality, with more complete picture of a patient’s longterm 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 for such organizations that provide advanced medical care.
During the third quarter of this consolidated fiscal year, we have been continuously gaining shares, and 30
hospitals and 67 clinics newly adopted, augmented, or updated our solutions, resulting in cumulative revenue of
2,874,310 thousand yen.
As for the progress of the strategic alliance with Toyota Tsusho Corporation (hereafter referred to as "Toyota
Tsusho"), in our first collaborative project to implement our flagship product Claio to Sakra World Hospital(location, Bangalore, India), we visited onsite and conducted field study on the progress and partnering with local
dealers in August. Within current consolidated fiscal year, we will decide more detailed framework.
We have built trusted medical solutions and services in Japan. Scaling to next height, in this fiscal year, we will
focus on sales of the packaged products to our existing customers as well as new customers, and with an eye on
sales of Claio and C-Note in India and the ASEAN region, we will be fully engaged in the overseas expansion ofthis business.
In the third quarter of this fiscal year, Fitting Cloud Inc., our subsidiary which delivers more efficient, precise,and intelligent cloud-enabled solutions, dedicated to build the cloud-based infrastructure well designed for patient
guidance at general hospitals.
Also, we developed cloud-based Electronic Data Collection (EDC) systems and cloud-based virtual browsing
environment. Scaling to next height, it thereby made significant strides in the preparation of exhibition and sales
promotion at relevant academic conferences.
〇 Office System
In this segment, we deliver products, mainly such as “DocuMaker Office”, document management systems. Our
Main target includes ministry-affiliated organizations and local governments as well as healthcare organizations,for which we can leverage on strengths derived from this DocuMaker Office. Spurred by DX acceleration, thosemain targets have been promoting the introduction of electronic approval and official document management
systems, and inquiries and pre-sale consultations are increasing accordingly. Also, we are increasingly receiving
inquiries towards next annual budget. Sales of this product have been steady to the target for this fiscal year, with
21 new or additional installations during the third quarter of this consolidated fiscal year, resulting in cumulative- 3 -revenue of 62,496 thousand yen.
During the third quarter of this consolidated fiscal year, one project has launched operation at a Tokyo
Metropolitan Government-affiliated organizations, and other projects, at one ministry-affiliated organizations andat one municipality, made progress, respectively.
We have established trusted relationship by our proven abilities and solutions, and highly reputed for “Close onsite engagement with clients, with high consulting skills to identify issues and propose precise solutions” and“High UI/UX, easy-to-use system from the user’s perspective”, and we have been steadily winning several largescale projects at many public organizations. 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 and medium-sized healthcareorganizations, which are our existing clients, and we are pleased to sell these cloud-based services that support
their back-office operations.
≪Healthtech≫Operating results of the Healthtech segment were revenue of 64,336 thousand yen (up 94.7% year-on- year) andsegment loss (operating loss) of 162,696 thousand yen (segment loss of 159,173 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 1), a Gaze Analyzing Perimeter, and GAP-screener (Note 2). The GAP is an affordable, but
breakthrough wearable device that contributes to the early detection of retina diseases such as glaucoma. Thissolution eliminates the need for a dark room, shortens exam time and reduces the patient’s burden.
Furthermore, by promoting the use of this solution at comprehensive medical exams and checkup facilities, andby collecting real-world data, contribution to the technological and solution innovation, in various fields such as
pharmaceuticals and life insurance, can be expected, because scientists and doctors will be able to conduct datadriven analysis and develop actionable insights.
As of September 2022, including those introduced in the previous quarters, 34 units of this perimeter have beenmarketed in Japan. In the third quarter, we also drove our promotion campaigns. We participated in the exhibition
and introduced GAP at International Modern Hospital Show 2022 in July, and at Japan Glaucoma Society in
September. Domestically, we augmented GAP introduction to university hospitals and clinics. For medical checkup
facilities, on the other hand, we lend GAP for free and charge on a pay per test, so that they can easily conductvisual field test as an optional item.
We will strive to introduce our GAP-screener to domestic health checkup facilities under strategic collaboration
with Toyota Tsusho nationwide.
Preparations for the overseas sales, which had been taking some time, has been more advanced. For example, inAugust, teaming up with our strategic alliance partner, Toyota Tsusho, we conducted marketing survey for several
healthcare organizations and ophthalmologists in India. Also, we participated in the exhibition and introduced GAP
at 69th Conference of Ophthalmologists Association, which was held in Tamil Nadu, a South Indian state during
August 5th to 7th.
We also made steady progress in our EU area expansion. On August 12th, GAP has been confirmed its
conformity for European Medical Device Regulation (MDR), and we have been completed the issuance of its EU
Declaration of Conformity. Moreover, during September 16th to 20th, our exclusive distributor Rexxam Co., Ltd.
presented GAP in 40th Congress of the ESCRS"(European Society of Cataract and Refractive Surgeons) at the
Milano Convention Centre in Italy, which was our first large-scaled promotion overseas.
In our promotion above, both in India and in EU, we had been highly valued by many people in healthcare
industry, especially from prominent ophthalmologists. Embracing those propitious achievements, we will launch
our sales for EU within this year, and for India within next year.
Innovating healthcare, additionally, we have been continuously conducting joint research with Kyoto University,- 4 -further expedited, and motivated by the discovery that our solution could provide objective values to help tounderstand 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 and evolve core technologies and products from various perspectives, in order tosolve many problems faced by the aging society.
(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)(2) Explanation on the Financial Position
Status of Assets, Liabilities, and Net assets
Total assets at the end of the third quarter amounted to 4,236,241 thousand yen, a decrease of 320,321 thousand
yen from the end of the previous fiscal year. This was primarily due to a decrease of 285,716 thousand yen incurrent assets, which is mainly composed of a decrease of 641,801 thousand yen in notes receivable, accounts
receivable and contract assets, partially offset by an increase of 294,509 thousand yen in cash and deposits, and by
an increase of 61,319 thousand yen in materials and supplies, as well as a decrease of 34,605 thousand yen in noncurrent assets, which is mainly composed of an increase of 32,690 thousand yen in tangible assets, partially offset
by a decrease of 67,786 thousand yen in investments and other assets.
Liabilities amounted to 562,702 thousand yen, a decrease of 481,327 thousand yen from the end of the previous
fiscal year. This was primarily due to a decrease of 530,004 thousand yen in current liabilities, which is mainlycomposed of a decrease of 172,480 thousand yen in accounts payable-trade and a decrease of 212,069 thousand
yen in income taxes payable, partially offset by an increase of 48,677 thousand yen in long-term liabilities.
Net assets amounted to 3,673,539 thousand yen, an increase of 161,005 thousand yen from the end of theprevious fiscal year. This was primarily due to an increase in shareholders' equity of 159,731 thousand yen
resulting from an increase of 154,717 thousand in retained earnings.
(3) Explanation on Future Performance Forecast
The consolidated performance forecasts for the full year ending December 31, 2022, have been unchanged ever at
the time of the announcement of the full-year financial results on February 9, 2022.
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.

- 5 -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- 6 -FY2022 3Q(As of Sep.30,2022)

2,171,974
1,218,805

2,466,484--

577,004

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

185,177
7,228
144,881
39,1083,419,885

71,256

103,946

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

239,091
344
239,435
472,974
816,355
4,236,241

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

51,146
83,915
11,863
148,796295,721

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

160,849
106,130
266,980
562,702254,259
224,259
3,844,949(818,446)
3,505,021
4,743
2,769
3,512,533
4,556,563

254,259
224,259
3,999,667(813,432)
3,664,753
4,743
4,042
3,673,539
4,236,241

(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
Amortization of organizing expenses
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 (loss) attributable tononcontrolling interests
Quarterly net income attributable to owners of theparentFY2021 3Q(From Jan. 1, 2021,
to Sep. 30, 2021)
3,513,670
1,593,016
1,920,654
1,217,216
703,438

FY2022 3Q(From Jan. 1, 2022,
to Sep. 30, 2022)
2,999,658
1,248,266
1,751,392
1,263,215
488,177

20
7,223
8,740
1,390
610
17,98434
28,996
3,643
1,390
1,592
35,6570361
361
721,061
721,061
231,2025,448
236,650
484,411448
448
523,386
523,386
169,053
3,308
172,361
351,025

(793)

1,273

485,204

349,751- 7 -(Quarterly Consolidated Statement of Comprehensive Income, Cumulative）（JPY in Thousands）

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

FY2021 3Q(From Jan. 1, 2021,
to Sep. 30,2021)
484,411484,411

FY2022 3Q(From Jan. 1, 2022,
to Sep. 30, 2022)
351,025
351,025

485,204(793)

349,751
1,273

- 8 -

(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. Furthermore, in accordance with the transitional treatment prescribed in Paragraph 28-15of the“Accounting Standard for Quarterly Financial Statements” (ASBJ Statement No. 12, March 31, 2020),
information concerning disaggregating revenue from contracts with customers for the first nine months of theprevious fiscal year is not presented.
(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 quarterly 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).

- 9 -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 third
quarter of the current fiscal year was 125,203 thousand yen and the number of shares was 162,300.
【SEGMENT INFORMATION, etc.】(Segment Information)
1. Sales and Income or Loss by Reportable Segment
FY2021 3Q (From January 1, 2021, to September 30, 2021)
Reportable segment
Systemdevelopment

Healthtech

Sub total(JPY in thousands）
Reported
amount for
Adjustment
consolidated(Note) 1
financialstatements(Note) 2

Sales
Sales for external
3,480,625
33,045
3,513,670
3,513,670
customers
Internal sales ortransfers between
2,227
2,227
(2,227)segments
Total
3,482,853
33,0453,515,898(2,227)3,513,670
Segment income or862,611(159,173)
703,438
703,438
loss(Note) 1. Adjustments are derived from elimination of intersegment transactions.
2. Aggregated amount of segment income or loss equals amount of operating income reported forconsolidated financial statements.
FY 2022 3Q (From January 1, 2022, to September 30, 2022)
Reportable segment
Systemdevelopment

Healthtech

Sub total（JPY in Thousands）
Reported
amount for
Adjustment
consolidated(Note) 1
financialstatements(Note) 2

Sales
Sales for external
2,935,321
64,3362,999,658
2,999,658
customers
Internal sales ortransfers between
1,485
1,485
(1,485)segments
Total
2,936,807
64,3363,001,143
2,999,658(1,485)
Segment income or
650,873(162,696)
488,177
488,177
loss(Note) 1. Adjustments are derived from elimination of intersegment transactions.
2. Aggregated amount of segment income or loss equals amount of operating 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 third quarter of the consolidated fiscal year was not material.

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3. Supplementary Information(1) Transition of Significant Financial Key Performance Indicators(JPY in thousands, except per share amounts)
FY2021 3Q
FY2022 3Q
FY2021 4Q
Net sales
Operating income
Ordinary income
Net income
Net income (loss) attributable to owners of the noncontrolling interests
Net income attributable to owners of the parent company
Comprehensive income
Net assets
Total assets
BPS (Book-value Per Share)
EPS (Earnings Per Share)（Cumulative）
3,513,670
2,999,658
703,438
488,177
721,061
523,386
484,411351,025

4,968,885
920,720944,593635,796

(793)

1,273

(230)

485,204
484,4113,359,528
4,060,167
131.17
18.95

349,751
351,025
3,673,539
4,236,241
143.04
13.65

636,027
635,7963,512,533
4,556,563
136.84
24.84(2) Production, Order, Sales
1) Actual Result of Production for FY2022 3Q (Cumulative Amount)
Business segment
Production (JPY in Thousands)
System development
971,923
Healthtech
132,383

YoY (%)
84.9
99.0

Total
1,104,307(Note) Figures above is calculated by total manufacturing cost for the current quarter.
2) Order Status for FY2022 3Q (Cumulative Amount)
Order received
Business segment
YoY (%)(JPY in Thousands)
System development
2,481,642
89.8
Healthtech
85,864
152.7
Total
2,567,507
91.0

Order backlog(JPY in Thousands)
1,345,861
1,345,861

3) Sales Result for FY2022 3Q (Cumulative Amount by Segment, Solution, and Channel)
Sales amount
Segment, solution, channel
Ratio (%)(JPY in Thousands)
System development
Software1,633,24154.5(of via sales agent）(482,691）
Hardware146,6274.9(of via sales agent）(10,799）
Support etc.

86.4

YoY (%)
121.9
120.0

YoY (%)

84.0
70.4

1,038,004

34.6

108.8

118,934

4.0

31.5

Healthtech
64,3362.1
Adjustments（Note）(1,485)(0.1)
Total
2,999,658
100.0(Note) Adjustments are derived from elimination of intersegment transactions.

194.7
85.4

Other

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