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 Six Months Ended June 30, 2023
August 9, 2023
FINDEX Inc.
Stock Exchange Listing:Tokyo Stock Exchange
Stock code:
3649
URL:
https://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:
August 9, 2023
Scheduled date to commence dividend payment:
September 8, 2023
Availability of supplementary materials on financial results:
Yes
Availability of quarterly results briefing:
Yes for analysts
Listed company:

1. Consolidated Financial Results for the Six Months ended June 30, 2023
(From January 1, 2023, to June 30, 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%
Six months ended
June 30, 2023
2,249
0.7
397 (12.8)
414 (13.9)
283 (11.3)
June 30, 2022
2,233 (7.1)
455 (6.8)
481 (4.7)
319 (6.1)(Note) Comprehensive income: Q2 FY2023: 287 million yen [(10.8%)], Q2 FY2022: 321 million yen [(5.4%)]

Basic earnings per share Diluted earnings per share
Six months ended
JPY
JPY
June 30, 2023
11.08
June 30, 2022
12.49
(Notes) 1. No statement is indicated above for the number of diluted earnings per share for Q2 FY2022 because
there were no issuable shares with dilutive effects.
2. No statement is indicated above for the number of diluted earnings per share for Q2 FY2023 because
there were no issuable shares.
(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
As of
JPY MM
JPY MM%
JPY
June 30, 2023
4,925
4,177
84.7
162.61
December 31, 2022
4,980
4,042
81.1
157.63(Ref.) Equity amount: Q2 FY2023: 4,169 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
－
4.00

Year ended December 31, 2022
Year ending December 31, 2023
Year ending December 31, 2023－
(Forecast)(Note) Revisions to the dividends forecast since the latest announcement: None

7.00

Total
JPY
9.50
11.00

3. Consolidated Financial Forecasts for the Fiscal Year ending December 31, 2023 (From January 1, 2023,
to December 31, 2023)* “%” indicates year-on-year changes from the previous corresponding period
Profit attributable Basic earnings
OperatingRecurring
Net sales
to owners of the
profitprofitper share
parent
JPY MM%

JPY MM%

JPY MM

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

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 (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting
Policies)” on page 10 of the attached document.
(4) Number of Shares Outstanding (Common Shares)
As of June 30, 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

965,288

987,475

Six months ended
June 30, 2023

Six months ended
June 30, 2022

Average number of outstanding shares
25,628,570
25,614,852
during the period(Note) The number of treasury shares at the end of the period includes our shares held by Custody Bank ofJapan, Ltd. (Trust Account E) (157,400 shares for Q2 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 (159,065 shares for Q2 FY2023, 167,573
shares for Q2 FY2022).
* This quarterly financial results report is out of 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.

Attached Material
Index
1. Qualitative Information on Quarterly Consolidated Financial Results……………………………………. 2(1) Explanation on Operating Results………………………………………………………………….…... 2(2) Explanation on Financial Position ……………………..………………………………………………. 5(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements…………… 5
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto
6(1) Quarterly Consolidated Balance Sheet ………………………………………………………………… 6(2) Quarterly Consolidated Statements of Income and Comprehensive Income ………………………….. 7
Quarterly Consolidated Statement of Income, Cumulative…………………………………………… 7
Quarterly Consolidated Statement of Comprehensive Income, Cumulative …………………………. 8(3) Quarterly Consolidated Statement of Cash Flows…………………………………………………...… 9(4) Notes to the Quarterly Consolidated Financial Statements…………………………………………….. 10
Notes on Going Concern Assumption …………………………..……………………………………. 10
Notes on Significant Change in Equity Capital ……………………………………………………... 10
Changes in Accounting Policies …………..…………………………………………………………. 10
Additional Information ……………………………………………………………………………….. 10
Segment Information etc.……………………………………………………………………………… 11
Significant Subsequent Events...………………………………………………………………………. 11
3. Supplementary Information ………………………………………………………………………………. 12

11. Qualitative Information on Quarterly Consolidated Financial Results(1) Explanation on Operating Results
In the domestic medical industry, where the Group primarily operates, changes to the insurance systems forreimbursing medical treatment fees, nursing care fees, and disability welfare service fees are slated to take effectfrom April 2024 in what is known as the “triple” amendments. This has led to a growing focus on improving
operational practices and re-evaluating information management in the medical field. Additionally, there are
active discussions regarding the promotion of the "Medical DX (Digital Transformation) Reiwa Vision 2030"
proposed by the government, including the “establishment of a national medical information platform”,“standardization of electronic medical records”, and "digitalization of medical fee revision".
Furthermore, the business environment surrounding the Group had undergone significant changes due to the
COVID-19 pandemic. Those changes had influenced the approach to software investments in the healthcare
industry. Among the large hospitals, there has been an increasing recognition that digitalization is essential not
only for streamlining internal operations but also for enhancing accessibility and quality of healthcare services
within the community, including collaborations with other hospitals, pharmacies, and caregiving institutions.
Simultaneously, there is a growing willingness to invest in advanced solutions for supporting medical practices,which improve the working conditions of physicians and healthcare professionals, as well as platforms thatenable direct electronic communications with patients.
In response to these industry trends and on-site needs, the Group is actively engaged in the sales expansion ofexisting products and the development and implementation of new services utilizing cloud-based technology.
The consolidated financial results for the six months ended June 30, 2023 are as follows.
(JPY in thousands)
Six months
Six months
First-halfChangeChangeended June
ended Juneachievement(amount)(%)
30, 2022
30, 2023
rate
Net sales
2,233,641
2,249,242
15,6000.7%
104.9%
Operating profit
455,696397,300(58,396)(12.8%)
123.4%
Recurring profit
481,236
414,372(66,864)(13.9%)
125.9%
Profit attributable to319,996
283,881(36,114)(11.3%)
124.5%
owners of the parent
In the first six months of the fiscal year ending December 31, 2023, consolidated net sales were ¥2,249,242
thousand (+0.7% YoY), operating profit was ¥397,300 thousand (-12.8%), recurring profit was ¥414,372
thousand (-13.9%), and profit attributable to owners of the parent was ¥283,881 thousand (-11.3%).
The decrease in consolidated cumulative results for this second quarter is largely influenced by the financial
performance of the first quarter, as disclosed previously. In the second quarter alone, our net sales increased by
2.9% and operating profit increased by 27.8%, compared to the same period last year. Propelled by the strong
performance of our Medical Business and the Public Sector Business driving an increase in revenue, in the firstsix months of the current fiscal year we achieved net sales of 104.9% and operating profit of 123.4% comparedto the forecast. The achievement rates for the first half of the year against the full-year targets were at 44.4% fornet sales, 30.3% for operating profit, 31.2% for recurring profit, and 30.8% for profit attributable to owners of
the parent. Our financial performance is progressing smoothly, with sustained sales growth and profitability, andwe are on track to achieve our full-year forecast as planned.
Consolidated results by segments for the first six months of the current fiscal year are as follows.
From the first quarter of the current fiscal year, we reorganized our reportable segments into the following
three segments: Medical Business, Public Sector Business, and the Health Tech Business. To enable year-onyear comparisons, results from the second quarter of the fiscal year ended December 31, 2022 have been
restated under the new segments.
≪Medical Business≫(JPY in thousands)

Net sales
Operating profit

Six months ended
June 30, 2022
2,120,223
597,077

Six months ended
June 30, 2023
2,152,769
469,075

2

Change (amount)
32,545(128,001)

Change (%)
1.5%(21.4%)

Mainstay products in the Medical Business segment include the data management software Claio, the progressnote system C-Note, and the document management system DocuMaker. These flagship products are rated
highly in large hospitals that provide advanced healthcare services and therefore command a stable share of themarket. As core hospital solutions, they play integral roles essential to the delivery of medical care.
In the first six months of the current fiscal year, consolidated net sales in this segment were ¥2,152,769
thousand (+1.5% YoY) and operating profit was ¥469,075 thousand (-21.4%). Due to significant impacts fromthe first-quarter financial performance, the consolidated cumulative results for the second quarter experienced adecline. However, in the second quarter, we achieved an increase in both revenue and operating profit. We
believe earnings to be solid with no major changes in net sales and profit trends.
During the current consolidated fiscal year, we have been focusing on sales of packaged products to both
existing and new customers in Japan. As a result, 32 hospitals and 59 clinics newly installed, added on, or
updated our solutions during this period. We have also launched a new application Remotalk-Cloud in May
2023, enabling remote communication among physicians and their staff.
Fitting Cloud Inc., a subsidiary specializing in cloud-based solutions, has started providing the cloud-based
infrastructure for the electronic tracing report service AAdE-Report since March 2023. Additionally, at the 27th
Annual Spring Conference of the Japan Association for Medical Informatics held in June 2023, Fitting Cloud
Inc. showcased various services including Valloon, a service as a countermeasure against ransomware.
≪Public Sector Business≫(JPY in thousands)

Net sales
Operating loss

Six months ended
June 30, 2022
51,626(23,961)

Six months ended
June 30, 2023
57,018(11,458)

Change (amount)
5,392
12,503

Change (%)
10.4%-

The Public Sector Business segment was established this fiscal year.
In this segment, we mainly sell DocuMaker Office, an archive management and digital approval solution, tomostly government ministries and agencies, local governments, public corporations and medical institution thatcan leverage its powerful features. The installation of e-approval and document management solution isaccelerating 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.
In the first six months of the current fiscal year, consolidated net sales in this segment were ¥57,018 thousand(+10.4% YoY) and operating loss was ¥11,458 thousand (versus the year-earlier operating loss of ¥23,961
thousand).
Regarding packages sold to local governments, the cumulative number of package installations has reached 25
since the service launch. We are also in the process of negotiating multiple projects for the current fiscal year
and the following spring installations. During the second quarter, we have commenced implementations forlarge-scale municipal projects and national university projects, making a substantial contribution to the sales
during the second half of the consolidated fiscal year. We are also currently focusing our sales activities on large
projects and emphasizing 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 numberof projects at local governments throughout Japan from next fiscal year onwards, we are focusing onstrengthening the sales capabilities of distributors and signing up new ones. Considering that our high-level
consulting skills and user-oriented, user-friendly solutions have a strong reputation, we hope to gain many more
contracts going forward. Moreover, a subscription business model is adopted to this service. Profit growth
generated by the buildup of monthly service fees is anticipated, as the number of existing users increases in the
future.
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 users.
Cumulative installations through to the second quarter now total six. Spurred by the government’s promotion ofDX, we have fielded a large number of enquiries from medical institutions that are considering the adoption of adocument management solution centering on the management of hospital rules and various manuals in order tocomply 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 provide utilization proposals tailored3

to the operational flow of each facility. Moreover, we can contribute to more efficient administration by
providing thoroughgoing support after installation.
≪Health Tech Business≫(JPY in thousands)

Net sales
Operating loss

Six months ended
June 30, 2022
63,276(117,418)

Six months ended
June 30, 2023
39,453(60,316)

Change (amount)(23,823)
57,101

Change (%)(37.6%)-In the Health Tech Business segment, we focused our efforts on domestic sales and on preparations of overseas
sales expansion of our gaze analyzing perimeter, or GAP (Note1) 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 ofretinal diseases, such as glaucoma and other conditions that lack 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 theexamination 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, early-stage retinal disease patient data can be shared with R&D
centers in Japan and overseas with the potential for it to contribute to the innovation of technology and solutions innumerous fields, including pharmaceuticals and life insurance.
In the first six months of the current fiscal year, consolidated net sales in this segment were ¥39,453 thousand(-37.6% YoY). We recorded an operating loss of ¥60,316 thousand, versus the year-earlier operating loss of¥117,418 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.
During the current consolidated fiscal year, we have been conducting demonstrations and sales of the products atdomestic medical facilities, and stepping up sales of GAP-screener (Note2) to nationwide health checkup facilities
in collaboration with Toyota Tsusho Corporation (headquartered in Aichi Prefecture). There were 12 domestic
shipments of these products in the first six months of the current fiscal year.
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 10th World Glaucoma
Congress held in Rome in June 2023. We have received positive feedback from visiting healthcare professionals,
and we are currently making final preparations for the start of shipments to the EU countries this fall. 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 (Note3), 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 and implementation 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.
(Note1) Gaze Analyzing Perimeter, GAP (Notification No. of medical device manufacturing and sales
38B2X10003000002)(Note2) Gaze Analyzing Perimeter, GAP-screener (Notification No. of medical device manufacturing and sales
38B2X10003000003)(Note3) 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.

4(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 June 30, 2023
4,925,523
748,227
4,177,296(JPY in thousands)
Change in amount(55,256)(189,615)
134,358

Total assets at the end of the second quarter amounted to ¥4,925,523 thousand, a decrease of ¥55,256 thousand
from the end of the previous fiscal year. This was mainly due to a decrease of ¥65,145 thousand in current assets,
primarily owing to a decrease of ¥605,489 thousand in notes and accounts receivable–trade, and contract assets,
which outweighed an increase of ¥528,067 thousand in cash and deposits.
Liabilities amounted to ¥748,227 thousand, a decrease of ¥189,615 thousand from the end of the previous fiscal
year. This was primarily attributable to a decrease of ¥180,929 thousand in current liabilities, mainly due todecreases of ¥62,569 thousand in accounts payable, ¥56,734 thousand in accrued expenses and ¥97,559 thousandin income taxes payable.
Net assets amounted to ¥4,177,296 thousand, an increase of ¥134,358 thousand from the end of the previous
fiscal year. This was mainly due to an increase in shareholders’ equity of ¥131,147 thousand by virtue of anincrease in retained earnings.
(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements
Our consolidated results forecasts for the fiscal year ending December 31, 2023 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 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 actively participate in initiatives related toclimate change, such as endorsing the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), joining the Japan Climate Initiative (JCI), and responding to questionnaires from the Carbon
Disclosure Project (CDP) regarding climate change initiatives both domestically and internationally. Additionally,
to achieve an increase in the ratio of female managers, we have formulated an action plan in accordance with the
Act on Promotion of Women's Participation and Advancement in the Workplace, and implemented various
measures such as consulting on career plans and providing trainings. From April 2023, we have been
implementing measures to improve the working environment, including reducing regular working hours andestablishing a full remote work system for employees residing in distant domestic locations or overseas. These
efforts aim to enhance the quality of work-life for our employees. Moreover, we have also publicly announced the"My Jinken Declaration," promoted by the Ministry of Justice, implementing various multi-faceted initiatives topromote sustainable management.

5Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheet(JPY in thousands)
As of December 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - other
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Provision for share awards
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of June 30,2023

2,413,747

2,941,814

1,361,258

755,769

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

162,122
4,722
146,575
52,152
4,063,156

103,287

100,540

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

255,573344
255,917505,908
862,366
4,925,523

81,209142,630
227,529
202,633
654,002

18,63985,895
129,969
238,569
473,073

186,787
97,052283,839
937,842

184,891
90,261
275,153748,227

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

254,259
224,259
4,485,607(794,271)
4,169,854
7,441
4,177,296
4,925,523

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income, Cumulative)(JPY in thousands)
Six months ended
June 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Foreign exchange gains
Subsidy income
Royalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Total non-operating expenses
Ordinary profit
Extraordinary income
Insurance claim income
Total extraordinary income
Extraordinary losses
Compensation for damage
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

Six months ended
June 30, 2023

2,233,641
906,677
1,326,964
871,267
455,6962,249,242
968,830
1,280,411
883,111397,300

10
21,150
2,654
1,390
783
25,98834
12,280
2,814
1,660
281
17,071

448
448
481,236－－
414,372－－

19,00019,000－－481,236
162,030(2,475)
159,555
321,681
1,685
319,996

22,00022,000411,372
118,263
6,016
124,279
287,092
3,210
283,881

(Quarterly Consolidated Statement of Comprehensive Income, Cumulative）(JPY in thousands)
Six months ended
June 30, 2022
ProfitComprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

8

Six months ended
June 30, 2023

321,681
321,681

287,092
287,092

319,996

283,881

1,685

3,210

(3) Quarterly Consolidated Statement of Cash FlowsSix months ended
June 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of software
Share-based payment expenses
Increase (decrease) in provision for share awards
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Subsidy income
Insurance claim income
Loss on compensation for damage
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Subsidies received
Proceeds from insurance income
Interest paid
Compensation paid for damage
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of leasehold deposits
Proceeds from refund of leasehold deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9(JPY in thousands)
Six months ended
June 30, 2023

481,236
35,752
96,521
－
1,297
(10)
448
(21,150)(2,654)－－
731,967
7,625(11,525)
8,176(150,078)(16,562)(13,833)(60,771)(6,135)1,080,304
10
64,220－(448)－(209,730)
934,356

411,372
22,157103,359
631
958
(34)
－
(12,280)(2,814)(19,000)
22,000605,489
2,585(7,239)7,850(62,569)(49,140)(6,899)(3,454)29,9081,042,879
12－
19,000－(22,000)(211,581)
828,310(78,000)
78,000(62,120)(114,177)(1,280)50
434(177,093)(78,000)
78,000(23,715)(109,348)
(17)
9
(17)
(133,089)

100,000(10,000)(154,369)(64,369)
692,8932,045,974
2,738,868－－(167,153)(167,153)
528,067
2,287,747
2,815,814

(4) Notes to the Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption): N/A(Notes 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 have 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 second
quarter of the current fiscal year was ¥121,423 thousand and the number of shares was 157,400.

10【SEGMENT INFORMATION, etc.】(Segment Information)
1. Sales and Income or Loss by Reportable Segment
Six months ended June 30, 2022 (From January 1, 2022, to June 30, 2022)
Reportable segment
MedicalBusiness

PublicSectorBusiness

Health TechBusiness

Subtotal(JPY in thousands)
Amount in thequarterly
Adjustments consolidated(Note1)
financialstatement(Note2)

Net sales
Sales for external
2,118,738
51,626
63,2762,233,641－
2,233,641
customers
Internal sales ortransfers between
1,485
－
－
1,485
(1,485)－segments
Total
2,120,223
51,626
63,2762,235,126(1,485)2,233,641
Segment profit or loss
597,077(23,961)(117,418)
455,696－455,696(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.
Six months ended June 30, 2023 (From January 1, 2023, to June 30, 2023)
Reportable segment
MedicalBusiness

PublicSectorBusiness

Health TechBusiness

Subtotal(JPY in thousands)
Amount in thequarterly
Adjustments consolidated(Note1)
financialstatement(Note2)

Net sales
Sales for external
2,152,769
57,01839,4532,249,242－
2,249,242
customers
Internal sales ortransfers between
－
－
－
－
－
－
segments
Total
2,152,769
57,01839,4532,249,242－
2,249,242
Segment profit or loss
469,075(11,458)(60,316)
397,300－
397,300(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.
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 second quarter of the previous consolidated fiscal year is disclosed based on theclassification of reportable segments of the second quarter of the current consolidated fiscal year.
(Significant subsequent events)
There are no significant subsequent events to be disclosed.

11Supplementary Information(1) Transition of Significant Financial Key Performance Indicators(JPY in thousands, except for per share amounts)
Six months ended
Six months ended
Fiscal year ended
June 30, 2022
June 30, 2023
December 31, 2022
Net sales
2,233,641
2,249,242
4,541,242
Operating profit
455,696397,300
1,028,522
Recurring profit
481,236
414,372
1,055,708
ProfitProfit attributable to owners of the noncontrolling interests
Profit attributable to owners of the parent
Comprehensive income
Net assets
Total assets

321,681

287,092

724,240

1,685

3,210

1,461

319,996
321,6813,706,244
4,628,045

283,881
287,092
4,177,296
4,925,523

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

144.31
12.49

162.61
11.08

157.63
28.21

Net assets per share
Basic earnings per share(2) Production, Order, Sales
1) Actual Result of Production for Q2 FY2023 (Cumulative Amount)
Business segment
Production (JPY in thousands)
Medical Business
734,733
Public Sector Business
30,674
Health Tech Business
70,050YoY (%)
117.6
95.9
68.5

Total
835,459(Note) Figures above is calculated by total manufacturing cost for the current quarter.
2) Order Status for Q2 FY2023 (Cumulative Amount)
Orders received
Business segment
YoY (%)(JPY in thousands)
Medical Business
1,617,363
89.6
Public Sector Business
144,217
233.8
Health Tech Business
16,22019.4
Total
1,777,801
91.2

Order backlog(JPY in thousands)
1,283,520
145,267420
1,429,207

110.1

YoY (%)
116.4
305.8
0.9
119.4

3) Sales Result for Q2 FY2023 (Cumulative Amount by Segments, Solutions, and Channels)
Sales amount
Segment, solution, channel
Ratio (%)
YoY (%)(JPY in thousands)
Medical Business
Software1,202,447
53.5
100.0
[of via distributors][392,314]
Hardware155,057
6.9
124.6[of via distributors][6,161]
Support742,883
33.0
109.1[of via distributors][222,606]
Others52,3802.3
46.5
Public Sector Business
57,0182.5
110.4
Health Tech Business
39,453
1.8
62.4
Total
2,249,242
100.0
100.7

12