3649

Financial Results Briefing
FINDEX Inc.
Fiscal Year Ending December 2022 Financial Results
August 2022

🄫2022 FINDEX Inc.

FY2022 Q2 Updates and Highlights

🄫2022 FINDEX Inc.

FY2022.12 2Q Updates and Highlights
Completed Declaration of Conformity to EU-MDR for GAP🄬 (Gaze Analyzing Perimeter)
Starting overseas sales soon

Concluded a distributorship agreement with Rexxam Co., Ltd. (Rexxam)
Our exclusive distributor of GAP to the EU, UK, Middle East and African countries

Concluded a strategic partnership agreement with Toyota Tsusho Corporation (TTC)・Introducing Claio and other medical solutions to the hospitals in India and ASEAN countries
・Distributing GAP to the hospitals in India and ASEAN countries
・Accelerating sales of GAP-screener to domestic check-up facilities and organizations

Announced a change in a consolidated subsidiary
EMC Healthcare Co., Ltd. (EMCH) was excluded from our consolidated subsidiaries and became an equity
method affiliate of the Company on 1 st July 2022, as a result of the exercise of stock options by its
managements and employees

Transferred to the Prime Market in Tokyo Stock Exchange
Now listed on the Prime Market, in accordance with the market restructuring conducted by the Tokyo Stock
Exchange

Relocated Tokyo headquarters
Relocated to Tokyo Sankei Building (26F, 1-7-2 Otemachi Chiyoda-ku) in April 2022

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FY2021 Q2 Financial Results

🄫2022 FINDEX Inc.

FY2021 Q2 Year to year Comparison（Consolidated）
Smoothly shifting to a profitable business structure with the strong salesof packaged medical solutions, customer acquisition in the office system
section and the completion of preparation for overseas sales of GAP
Sales

IncomeSteady progress in all business segments
but slightly below the forecasted figure:

Successful to introduce profitable
solutions to medical institutions:

99.1％ against the budget

Over 110％ against the budget（Millions of yen）

FY2021 Q2ActualFY2022 Q2ActualYear-on-year
ratio

Relativeto budget

2,405

2,233

92.9 ％

99.1％

Operating Income

488

455

93.2 ％

112.8％

Ordinary Income

505

481

95.3 ％

116.0％

Profit Attributable toShareholders of Parent

340

319

93.9 ％

117.2％

13.30

12.49

－－Net Sales

Earning per Share（yen）
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FY2022 2Q Comparison of the Past 3 Years (Consolidated)
Full-Year Forecast（Millions of yen）

4,937

5,000
Full-Year Sales
4,968

4,500

4,000

Full-Year Sales
4,281

Full-Year Sales
4,004

3,500

3,000

2,500

2,000

1,500

48.4％

56.4％
44.9％

45.2％

Q2 Sales
2,405

Q2 Sales
2,260

Q2 Sales
2,233

Q2 Sales
1,921

22.1％
19.0％

1,000

500

0

17.4％

16.1％

746

643

276

14.4％
2019944

481

555

505

24.6％

21.0％

2020

21.5％

2021
％：Sales Progress Rate

🄫2022 FINDEX Inc.

1,091

2022
Q2 Ordinary Income

Full-Year Ordinary Income

5FY2022 2Q Profit Structure (Consolidated)（Millions of yen）

Mainly spent on:
Labour: 426 Procurement: 198 Outsourcing*: 151*Breakdown of Outsourcing Costs:• Implementation: 47• Support: 53 (Support of hardware and usage fee for external software included)• Software development: 48

Operating Income Margin：20.4％
Ordinary Income Margin：21.5％

Net Sales
🄫2022 FINDEX Inc.

CGS

SGA

Operating Income

Ordinary Income6

FY2022 2Q Results by Segment (Consolidated)
Reported Segments：
System Development▶ Medical System and Office System
Healthtech ▶ GAP and EMCH products and solutions（Millions of yen）

Net Sales（Consolidated）

2,233System Development
2,171 （Sales Volume Ratio：97.2%）
Healthtech
63（Sales Volume Ratio：2.8%）
0500

1,000

1,500

2,000

2,500

Medical System 2,120 （Segment Volume Ratio：97.7%）
Office System

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51 （Segment Volume Ratio：2.3%）
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FY2022 2Q Progress Report（Consolidated）（Millions of yen）

Achievement:
Q2/Half-Year Forecast：99.1％
Q2/Full-Year Forecast：45.2％

2,233
Net
Sales
売上高

Half-Year Forecast
2,253

Full-Year Forecast
4,937

455
Half-YearForecast
404

Operating
営業利益
IncomeFull-Year Forecast
1,085

Achievement:
Q2/Half-Year Forecast：112.8％
Q2/Full-Year Forecast：42.0％

481

Achievement:
Q2/Half-Year Forecast：116.0％
Q2/Full-Year Forecast：44.1％

Half-Year
Forecast
415

Ordinary
経常利益
IncomeFull-Year Forecast
1,091

319

親会社株主にProfit
Attributable to
帰属するShareholdersof Parent

当期純利益

Full-Year Forecast
7160
🄫2022 FINDEX Inc.

Achievement:
Q2/Half-Year Forecast：117.2％
Q2/Full-Year Forecast：44.7％

Half-Year
Forecast
273

1,000

2,000

3,000

4,000

5,0008Our Market ShareAn Overwhelming Market Share of75.0％
in National University Hospitals

Market share in large hospitals
with more than 500 beds
Other hospitals and clinics

46.8％Over 1,600
facilities*From 2021, one-time products are excluded from aggregation.
Reference: Ministry of Health, Labor and Welfare 2020 Survey of Medical Facilities (static and dynamic) and Summary of Hospital Reports（As of June 2022）
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FY2022 2Q Changes in the Number of Medical System Users(# of Facilities)

Classification

FY2021

FY2022 2Q

Changes*

Large hospitals (>500 beds)

188

191

3

Medium sized hospitals (100 to 499 beds)

388

397

9

Small hospitals (20 to 99 beds)

81

83

21,114

1,151

37

Other medial-related facilities

17181Non-medical facilities

10100

Community-based comprehensive care

25250

1,823

1,87552

Clinics (<19 beds)

Total*From 2021 one-time products are excluded from aggregation.

（As of June 2022）*The number of increase is the pure increase of new users (including reclassification), in addition to “system renewal”.
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FY2022 Full-Year Outlook

🄫2022 FINDEX Inc.

2022 Forecast (Consolidated）• Under COVID-19 crisis hospital investment decisions in software are less active
nevertheless profit margin remains high and stable as the sales of pre -packaged solutions
and cloud-based services.
• Numbers of inquiries, demonstrations have increased and several implementations areunderway for affiliated organizations of central government.
• Targeting the total sales of 400 units with the strategic alliances with our partners.
（Millions of yen）

2021 Actual（Consolidated)

2022 Forecast（Consolidated)

AmountAmountYoY ratio

4,968

4,937

-0.6 ％

Operating income

920

1,085

+17.8 ％

Ordinary income

944

1,091

+15.5 ％

Profit attributable to owners of parent636

716+12.6 ％

24.84

27.96－Interim dividend (yen)

2.50

3.00

－

Year-end dividend (yen)

6.00

6.50

－

Full year dividend (yen)

8.50

9.50

－

Net sales

Earning per share (yen)Dividend per share (forecast)

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Trends in Net Sales, Ordinary / Net Income (Consolidated)（Millions of yen）

6,000

+24.1％

+8.8％
4,000

4,937

4,968

+18.8％

5,000

FY2022
Forecast

-6.5％

4,281

4,004

3,603

3,000

2,000

746

593

1,000

398

944

643

499

1,091
716

636

430

02018
2018年

20192019年
売上高
Net Sales

🄫2022 FINDEX Inc.

2020
2020年
経常利益
Ordinaryincome

2021
2021年

2022Forecast
2022年予想

当期純利益
Net income
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FY2022 Forecast by Products (Consolidated)

2021■ ClaioSeries
Claioシリーズ

2022 Forecast■ DocuMaker Series
DocuMakerシリーズ■ REMORAREMORANet sales
4,968 Mil JPY
Direct 80.6%
Distributor 19.4%

Operating income
920 Mil JPY■ Radiology
放射線■ DocuMaker Office
DocuMaker Office

Net sales

4,937 Mil JPY

■ GAP
GAP

■ Hardware
ハードウェア■ Maintenance
メンテナンスOperatingincome1,085 Mil JPY■ License

ライセンス■Others

その他■Subsidiaries
連結子会社

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Medical System Segment
Market Trends

Growth slowing down due to widespread of covid-19

Adapt sales & implementation to covid-19••

Steadily gain new and additional deals under covid-19
Review the areas of responsibilities and services with thedistributors to establish an efficient sales network.

Cross-sell to existing customers and strengthen sales ofpackaged software to new customers••

Cross-selling

Medical Records

Installed

C-NoteImage Management

Installed

Claio

Increase the number of products used by existing customers, thereby
enhancing opportunities for comprehensive service offerings including
maintenance.
Prioritize sales of existing packaged products with low installation costs
to further improve profit margins.

Prepare to build a new infrastructure for medicalservices•Connect people, goods and services through cloud computing torealize a more convenient and efficient medical system and tocreate a regional healthcare community.

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Office System Segment
Market Trends

Local governments focusing on digitalization to drive improvement

Actively apply for bids••

Participate in bids from local governments and public organizations,addressing their needs based on the policies by Ministry of Internal Affairsand Communications.
Directly manage large projects and outsource small to mid-sized projects todistributors.

Expand sales to administrative departments within hospitals
by leveraging our existing sales channels in medical market•

Aim to rapidly spread the adoption of our software, based on our huge
success in delivering software to the majority of national university hospitals.

Reorganize and enhance internal resources to handle large
projects•

Multiple negotiations in progress with some orders scheduled forintroduction after 2023.

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Health Tech Segment– Gaze Analyzing Perimeter
Market Trends

The ophthalmology field is less susceptible to disease outbreaks andcan expect stable sales

DomesticOverseas

Expand sales via distributors

Launching in EU soon

Total Sales ＝26 units (GAP-Screener/GAP)• 1/3 of domestic ophthalmologists are our customers.
⇒ Sales to existing customers a priority, multiple
demos underway.
• Sales target for FY2022：100 units• Declaration of Conformity to EU-MDR
completed.
• Contracted with the exclusive distributor Rexxam
Product Name: Eye-Tracking Perimeter
FieldNavigator (OEM)• Export routes and local sales networks are alreadysecured.
⇒ Number of local dealers:
EU: 33, Middle East & Africa: 23• Sales target for FY2022：200 units

Creating a market for medical checkup facilities
through a pay-per-use system
Realize multiple business meetings (GAP-Screener).
• Installations started in several facilities.
• Aligning with Toyota Tsusho Corporation, establish a sales network
specializing in medical checkups through the pay-per-use system.
• Sales target for FY2022：100 units

Further researches underway with Kyoto Univ.
• Selected for AMED (Japan Agency for Medical Research andDevelopment) project, obtained a total budget of 260 million JPY
over 5 years.
• Useful for detecting MCI (early-stage dementia) in addition tovisual field abnormalities.
• Possibility of diversion to testing for other psychiatric and braindisorders.

🄫2022 FINDEX Inc.

Formulating sales strategies forother regions• Collaborating with partners to build sales
networks in each region.
• Sales in India and ASEAN countries⇒ Contracted with Toyota TsushoCorporation• Sales in North and South America⇒ developing process for FDA approval.
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FY2022 Outline - Our Targets and Goals
Improve Profitability of Medical Software
Healthtech Contributes to Our Sales and Profits
MedicalSystem

Growth slowing down due to widespread of covid-19▶ Adapt sales & implementation to covid-19▶ Cross-sell to existing customers and strengthen sales of packaged software to new customers▶ Prepare to build a new network/infrastructure for medical services

Local governments focusing on digitalization to drive improvement

OfficeSystem

Healthtech

🄫2022 FINDEX Inc.

▶ Actively apply for bids
▶ Expand sales to administrative departments within hospitals by leveraging our existing sales
channels in medical market▶ Reorganize and enhance internal resources to handle large projects

The ophthalmology field is less susceptible to disease outbreaks and canexpect stable sales▶ Strengthen business by developing sales networks with Rexxam and Toyota Tsusho▶ Accelerate sales and implementations of GAP-screener to health checkup centers▶ Declaration of Conformity to MDR completed - Start sales in the EU, UK, Middle East & Africa
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Progressive Software Creators
Always have, Always will.

🄫2022 FINDEX Inc.