Initiatives and performance forecast for 2017

Performance for 2016 and performance forecast for 2017
For the year ended December 31, 2016, sales stood at 3,288,025,000 yen (an increase of
11.4% year on year), ordinary income at 724,821,000 yen (an increase of 8.0% year onyear), and net income at 499,915,000 yen (an increase of 13.3% year on year). For theyear ending December 31, 2017, we forecast sales of 3,850,000,000 yen, ordinary incomeof 1,055,000,000 yen and net income of 730,000,000 yen.

2016
Sales(thousand yen)

2017(forecast)

3,288,025

111.4%3,850,000

117.1%

Operating income(thousand yen)724,664108.1%

1,055,000

145.6%

Ordinary income(thousand yen)

724,821108.0%

1,055,000

145.6%Net income(thousand yen)

499,915113.3%

730,000

146.0%Net income per share(yen)

19.35

-

28.30

-

Interim dividend(yen)

2.00

-

2.00

-

Year-end dividend(yen)

5.00

-

5.00

-

Full-year dividend(yen)

7.00

-

7.00

-

Total dividends (million yen)

182

180

Dividend payout ratio (%)

36.2

24.7

Dividend per share(yen)Medical field
In the year ended December 31, 2016, the Company revised down its performance
forecast for the year due to external factors such as: 1) delays in the introduction ofsolutions caused by medical institutions' own issues; and 2) the fact that the Company
failed to win many contracts that were based on bundling its electronic medical records
system with another company's system. However, the Company's integrated solution
offerings, including its two flagship systems, network imaging system Claio anddocument creation system DocuMaker, were highly praised, resulting in our solutions

being newly or additionally introduced into 85 hospitals and 114 clinics. MapleNote
Perinatal System was released in February 2016 and has already been introduced tonine customers during the year under review, with many inquiries on the system
continuing to come from customers.
In a new move, we have begun to explore and build a regional collaboration system
based on medical certificates (letters of acceptance). The country's April 2016 revision toits fee structure for official medical services enables service providers to be able tocalculate the number points by attaching examination results or image data whensending or receiving medical certificates using electronic means. In light of theabove-mentioned revision, we are now leveraging our existing solutions andtechnologies to build a scheme that allows the user to create a medical certificate,gather images and examination results and send or receive the data securely.
The Company has been aggressively collaborating with other companies. Through astrategic collaboration with CRI Middleware, we have created a system to record
high-quality videos of surgeries and other medical procedures; these videos take up half
the hard disk space compared to a typical product of this kind. In joint research
programs with Kyoto University and Ehime University, we have launched an initiative
to develop a new perimetry system, as well as an initiative to gather and use big data.
To strengthen our solutions and technologies to the extent possible, we will continue toenter into strategic partnerships and engage in joint research with enterprises anduniversities that have a high level of expertise in a particular field.

Non-medical field
During the year under review, the Company marketed document management system
DocuMaker Office, providing it to construction and real estate companies. These usershighly praised the fact that this system enables them to effortlessly streamline
operations through digitizing paper documents by scanning them, in addition toinputting and compiling data online. As a result, companies faced with similar
challenges in other sectors are inquiring us about the system. Our existing proposals
appear to be solidly promising, although it is time-consuming to put forward a proposal
to a prospective customer in a sector new to us. It also takes time to win a contract fromthe entity because we must deeply examine its challenges after understanding thesector's business practices and provide solution and consultation services. Meanwhile,
we are actively marketing the Company in different ways in order to acquire newprospective customers.

Initiative for the year ending December 31, 2017
Medical field
Demand from large-sized hospitals has run its course and now mainly consists ofmeeting the demand for replacing hardware when their useful lifetimes are up. An
advantage of the Company's solutions is the fact that they allow a single product tocover a wide range of matters and that introducing multiple products enables the userto lower introduction costs, which puts the Company at an advantage over its rivals
when the time comes to replace a system. Going forward, in addition to steadilyacquiring replacement contracts, we will ensure that an increasingly wider range ofcustomers will choose our products by leveraging our product appeal and significant
cost advantage.
Small- to medium-sized hospitals and clinics will likely continue to introduce our systems
steadily in the coming years. We will strive to expand our market share on the back of ourpowerful ophthalmology and otolaryngology solutions, as well as our radiotherapy segment
systems, which will provide the key to allowing our systems to be introduced by small- to
medium-sized hospitals, and will become a new source of strength for the company. At thesame time, we will continuously seek to acquire new distributors and ensure that system
introduction becomes more efficient.
In collaboration with a consolidated subsidiary newly established in February 2017, we will
also work on medical data analysis and data health initiatives, programs that will tap into
our medical sector strategy and artificial intelligence (AI) technologies, thereby further
improving the quality of our existing business lines and expanding them.
Steady progress is continuing to be made by our efforts to explore and build a new regional
collaboration system based on letters of acceptance. Already, we are in the process ofnegotiating with several key regional hospitals toward establishing a collaboration platform
with each of them. By leveraging the expertise accumulated to date, we will propose a
regional collaboration system befitting of each medical institution's policies and thecharacteristics of each area, thus working to build a user-friendly system that is appropriate
for practical usage.

Healthcare and home medical and nursing care fields
In the healthcare field, we will work on the research and development for gathering andanalyzing not only medical data from medical institutions, but also the data on personal
health management.
In the home medical and nursing care fields, the Japanese government has been
pursuing a state policy of promoting a shift to early-stage home medical service
practices. IT is increasingly used as a means of streamlining operations and enabling
the entities involved to share information smoothly. In this respect, in order to save
medical expenses, it is necessary to: 1) improve the quality of an objective evaluation (i.e.
assessment) of visiting medical and nursing care services; and 2) provide such services
appropriately. The Company has developed a system to ensure that such assessment isdone periodically and a plan based on it is carried out, thereby enabling quality
improvement and providing assistance. In the coming years, we will work on making
the system more widespread in an effort to promote visualization in medical andnursing care services and improve their quality.

Non-medical field
For our flagship product, document management system DocuMaker Office , we havecompleted a for-municipality package as an addition to our ordinary package targeting
general enterprises. We have been receiving inquiries from both existing-user
municipalities as well as other municipalities. They highly praise the system's
uncomplicated and user-friendly screens while being equipped with the necessary andrequired functions. Going forward, we will continue to approach existing-user
companies in sectors for which we already hold specialized knowledge as well as sectors
new to us, such as the temporary staffing service sector.
Although sufficient demand is thought to exist for our data transfer service, market
needs only match technology seeds when the system replacement occurs timely, so it israre for us to win contracts promptly. However, given that our technologies and schemes

in this respect are highly praised, we will take a continuous approach to our contacts inorder to secure a contract when such need arises.
As for our stress checking system, a growing number of inquiries are coming fromfacility operators that used the paper-based operation method for the first year, owing toa wait-and-see attitude. Our system allows the user to effortlessly take an examinationand know the results of the examination online, and to simultaneously use thepaper-based and online methods. Thus, we think the advantage of this system's would
be appreciated by each user because its actual operation enabled it to discoverchallenges. Given that there have been a large number of inquiries from facility
operators providing stress checking services; we will approach them as new contact
targets in the coming years.
With steady progress being made by the direct sales of our products for system
introduction, we will simultaneously strive to acquire new distributors, laying andsolidifying the groundwork for great growth in our market share.