3649

Financial Results Briefing
FINDEX Inc.
Fiscal Year Ended December 31, 2022, Financial Results
February 14, 2023

🄫2023 FINDEX Inc.

- FY2022 Financial Results- FY2023 Outlook- Medium-term Business Plan
- Appendix

🄫2023 FINDEX Inc.

FY2022 Financial Results

🄫2023 FINDEX Inc.

FY2022 - Year on Year / Against the Budget (Consolidated）
Sales of medical software remained steady andoffice solutions project gained several new customers.
Meanwhile GAP sales are 1.5 to 2 years behind plan.
(¥ Millions)Year-on-year

FY2022

FY2021[Changes %]Against the budget[Changes %]Net sales

4,968

4,541

(8.6%)

Cost of sales

2,412

1,818

(24.6%)

Selling, general andadministrative expenses

1,635

1,694

3.6%

Operating income

920

1,028

11.7%

(5.2%)

Ordinary income

944

1,055

11.8%

(3.2%)Net income attributable toowners of the parent

636

722

13.5%

(0.9%)

Earning per Share (Yen)

24.84

28.21

🄫2023 FINDEX Inc.

-(8.0%)

3

FY2022 - Changes over the Past 5 Years (Consolidated)（Net sales / ¥ Millions)（Annual cash dividends per share / ¥)4,9685,000

14.00

4,541
4,281

12.00

4,004
4,000

3,603

10.00

9.50
3,000

8.50
8.00

7.50

8.00

8.00
6.00

2,000
4.00

944
1,000

746

593

1,055

643

2.00

00.00
2018

2019

売上高
Net Sales
🄫2023 FINDEX Inc.

2020

経常利益
Ordinary Income

2021

2022

１株当たり年間配当金
Annual cash dividends per share
4

FY2022 - Reportable Segments / Sales Composition (Consolidated)
Systemdevelopment

Reportable Segment : Medical System / Office System
Net Sales: JPY 4,473 Mio
Changes: (9.1%)
Operating income: JPY 1,233 Mio Changes: 8.4%
Reportable Segment : Gaze Analyzing Perimeter GAP / EMCH products*

Net Sales: JPY 69 Mio
Operating income: JPY (205 Mio)

Health Tech

Changes: 40.7%
Changes: -* Changes from consolidated subsidiary to equity method affiliate effective July 2022（￥ Millions）

Net sales（Consolidated）4,541
System Development
4,473（Sales Volume Ratio：98.5%)
HealthTech69（Sales Volume Ratio：1.5％）
0500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Medical System 4,352（Segment Volume：97.7%）
Office System 121（Segment Volume：2.7%）
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5

FY2022 - Results by Product
Generate continuous sales
through maintenance

Claio series drives overall sales
Net Sales : JPY 1,865 Mio
Proportion : 41.1%

Net Sales : JPY 1,184 Mio
Proportion : 26.1%
Claioシリーズ
Claio related products
DocuMaker
Documaker
REMORAREMORA
PDI+MoveBy
PDI+ MoveBy
Radiology
DocuMaker
OfficeDocumaker Office

GAP
GAP
ハードウェアHardwareメンテナンス
Maintenance

Net Sales
JPY 4,541 Mio
Direct76.2%
Distributor 23.8%

Operating income
JPY 1,028 Mio

ライセンス
LicenseDocuMaker has consistently
stable sales

その他
Other
Fitting
CloudInc.
Inc.
Fitting Cloud

Net Sales : JPY 144 Mio
Proportion : 3.2%

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6FY2022 - Updates and Highlights
Establishment of new departments "Consulting Department” and “Public Solutions Department”• Launched consulting services for medical institutions.
• Established a department specializing in R&D and sales of DocuMaker Office.
Change in Reporting Segments• System development, Health Tech（Two segments）*Until FY2022.
➡ Medical Business, Public Business, Health Tech Business （Three segments）*From FY2023.

Revision of the Medium-term business plan “Vision for 2025”• Revised some of our numerical and non-financial targets regarding the changes in external circumstances aswell as the progress of our projects .

Released “Medical Avenue” a cloud-based application for patients• Completed app to make the complex flow of hospital visit at large hospitals more seamless.
• Under operation at Kyoto University Hospital since January 2023.
Subsidiary Fitting Cloud Inc. released new products• Launched three products after approximately two years of R&D since establishment.
Released "MIEr for Claio" an image clarifying function• ”MIEr” by Senju Pharmaceutical Co.,Ltd (Senju) has been added to our flagship software Claio, launching tothe market as “MIEr for Claio” by Senju.

Declared support for TCFD initiatives and participated in the TCFD Consortium• Decided to disclose the information for the response to climate change in accordance with the guidelines.
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7

FY2023 Outlook

🄫2023 FINDEX Inc.
🄫2022

FY2023 - Forecast by Reportable Segments (Consolidated)
Reporting Segments will change from FY2023
Two segments ⇨ Three segments
System development(Medical System, Office System)

Health Tech

Until
FY2022

From2023
onwardMedical Business

Public Business（formerly : Medical System）（formerly : Office System）

Health TechBusiness

Establish a Consulting
Department to launch anew business model,
providing consulting
services for medicalinstitutions.

Roll out a new businessfrom the project toaccelerate sales of"DocuMaker Office",targeting municipalities
and public organizations.

Continue to cooperate withsales partners to catch up
domestic /overseas salesof GAP, aiming to install
260 units in and outsideJapan.

◆ Full-Year Forecast
Net Sales : JPY 4,705 Mio
Operating income :◆ Full-Year Forecast
Net Sales : JPY 160 Mio
Operating income :◆ Full-Year Forecast
Net Sales : JPY 200 Mio
Operating income :JPY 1.298 Mio

JPY 13 Mio

JPY 2 Mio

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9FY2023 - Forecast (Consolidated)• Expand our business in three segments : Medical Business, Office Business, Health Tech Business.
• Continue to develop a profitable business and improve each profit margin.
(¥ Millions)

FY2022(Consolidated)
AmountFY2023（Consolidated）
Year-on-year[Changes %]AmountNet Sales

4,541

5,065

11.5%

Operating income

1,028

1,313

27.7%

Ordinary income

1,055

1,330

26.0%

722

923

27.7%

Net income attributable to owners of the parent

Earnings per share (Yen)

36.03-Dividend per share
Interim dividend (Yen)

3.00

4.00

-Year-end dividend (Yen)

6.50

7.00

-

Full year dividend (Yen)

9.50

11.00

-

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10

FY2023 - Quarterly / Net Sales, Ordinary Income , Net Income (Consolidated)「Accounting Standard for Revenue Recognition」(ASBJ Statement No. 29 March 31, 2022)（￥ Millions）

5,065

5,000

29.3%

4,541
34.0%

4,000

17.1%
25.9%
38.1%

3Q+4Q
57.7%

22.3％

3,000

16.9%

17.7%

19.0%
15.7%

2,000

21.3%

1Q+2Q
42.3%

17.5%

40.7%
29.4%
1,000

27.8%

27.3%

1,055

944
746

643

499

430

20192020

1,330
923

636722

2021

2022

01Q
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2Q

3Q

4Q

経常利益Income
Ordinary

2023(Forecast)2023(予想)
Net
income
当期純利益
11

Medium-term Business Plan

🄫2023 FINDEX Inc.

Vision for 2025 - Overview of the Revisions and its BackgroundManagement Targets (Consolidated, M&A excluded)(¥ Millions)

Original
Sales

Overview

RevisedProfitSales

ProfitFY2021

4,600

1,010

4,843*

944*

FY2022

5,600

1,600

4,541*

1,055*FY2023

7,000

2,300

5,065

1,330

FY2024

8,500

3,400

6,331

1,710

FY2025

10,800

4,900

7,019

2,101*Actual results⚫ Impact of covid-19 on software sales
1. Decrease in sales due to partial restrictions on sales activities for medicalinstitutions
2. More investments were made on covid-19 preventions than the operation
optimization solutions by the hospitals and clinics

Background⚫ Medical device project (GAP) slowed down
1. Required more time than expected to build a sales framework for domestic medical
facilities
2. A significant delay in the process of conforming the device to the latest EU-MDR
3. Required time to develop additional analytics to apply the device to foreigners

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13

Numerical Targets (Consolidated)(¥ Millions)

FY2022(Actual)

FY2025(Target)(¥ Millions)

(¥)

7,000

20.0
6,330

(¥ Millions)

18.0
6,000

Net Sales

4,541

18.0

5,754
16.0

6,330

15.0

5,065
5,000

14.0
4,541

Ordinary
Income

1,055

2,100

12.0
4,000

11.0
10.0
9.5

Ordinary
Profit Margin

23.2%

33.2%

3,000
8.0

6.0

2,000

Payout
Ratio

2,100

33.7%

31.2%

1,710
4.0
1,330
1,000

Annual Cash
Dividends perShare

1,055
2.0

JPY 9.50

JPY 18.00
00.0

FY2022(Actual)2022(実績)

FY2023(Forecast)2023(予測)

FY2024(Target)2024(目標)

Medical
病院情報システム
Software
Maintenance
保守サポート & Support
ヘルステックビジネス
公共ビジネスHealthTech Solutions
PublicSector Solutions
年間配当金
AnnualCash Dividends per Share
🄫2023 FINDEX Inc.

FY2025(Target)2025(目標)
Consultation
医療コンサルテーション
Services
経常利益 Income
Operating14

Business Strategy 2023 - 2025

Restructuring and optimization of our business portfolio
Challenging future for innovation, leveraging our strengths and specialties⚫ Proactively cross-sell software solutions, to more than 1,900 existing customers (as ofMedicalBusiness

December 2022) mainly the large hospitals⚫ Extensive sales of packaged solutions via distributors to achieve higher profit margin⚫ Promptly penetrate the market with self-developed data infrastructure which support
medical digitalization⚫ Set our legally* compliant “DocuMaker Office” the public records management solution

PublicBusinessas the core product, focusing the target on municipalities, public companies, andexternal organizations of ministries and agencies*Law Concerning Management of Public Records, Law No. 66 of 2009, enacted on July 1, 2009.

⚫ Overseas: Establish sales structures not only in the EU countries but also in India,HealthTechBusiness

🄫2023 FINDEX Inc.

ASEAN countries, and the U.S. to boost sales of GAP, a perimeter equipped with eye
tracking technologies⚫ Domestic: Establish a consulting sales system at medical equipment dealers by training
and assigning sales professionals capable of explaining the technical aspects of GAP
15

Management Optimization and Growth Strategies 2023 - 2025

“Enriching Society with Technologies and Creation”
Fulfilling our responsibilities as an organization supporting the mental and physicalwellbeing of people, through Concentration of Management Resources, Acceleration of R&Dand Human Capital Investment

1Concentration ofManagement
Resources• Restructure medical solutions business to sustain growth• Prioritize M&A as a key growth strategy• Strengthen partner sales• Reconceptualize our presence as a R&D-oriented company

2

Acceleration ofAdvanced R&D• Improve internal training system and enable dynamic staffing including
management levels• Acquire and retain the right talent• Support and engage in international initiatives for climate change (E)3

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Addressing Key
Sustainability
Challenges• Contribute to reducing disparities in health care and improving wellbeingof people (S)• Ensure good corporate governance and foster a diverse and inclusive
workplace culture (G)16Appendix- FY2022- FY2023 Initiatives in Each Reportable Segment

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FY2022

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Appendix - Profit Structure (Consolidated)

Profit increased approx. 100 million yen ( Y on Y )⇒ Reduced cost of sales by 24.8%, focusing on sales of profitable packaged products（￥Millions）
5,000

4,968

4,541

Breakdown [Y on Y]
Procurement : 465 (37.2%)
Outsourcing : 355 (34.4%)

4,000[% shows changes from the previous year]

3,000

2,412

2,000

1,818
1,635

1,694

1,000

920

1,028

0Nessales
売上高

CGS
売上原価

SGA
販売費･一般管理費
2021

🄫2023 FINDEX Inc.

Operatingincome
営業利益

2022
19

Appendix - Selling, general and administrative expenses Partial breakdown (Consolidated)
FY2022（￥ Millions）

Expense of rent
Proportion : 9.5%
Y on Y : 37.0％

1,600[% shows changes from the previous year]

1,400
160
117

1,200

103
149

1,000

109

110

92

242751232443942

950

111
1639800

600

1,072

1,092400

Personal & Hiring

200

Proportion : 64.5%
Y on Y : 1.9%[% shows changes from the previous year]

02019
人件費＋採用教育費
Personal & Hiring

2020

R&D

2021
広宣販促費
Advertising& Promotion
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旅費交通費
Travel2022
地代家賃
Expense of rent
20Appendix - 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

48.3％
Over 1,600
facilities*From 2021, one-time products are excluded from aggregation.
Reference: Ministry of Health, Labor and Welfare 2021 Survey of Medical Facilities (static and dynamic) and Summary of Hospital Reports(As of December 2022)
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21

Appendix - Changes in the Number of Medical System Users(# of Facilities)

Classification

FY2021

FY2022

Changes*

Large hospitals (>500 beds)

188

189

1

Medium sized hospitals (100 to 499 beds)

388

408

20

Small hospitals (20 to 99 beds)

81

84

3

1,114

1,176

62

Other medial-related facilities

17192

Non-medical facilities

10

100

Community-based comprehensive care

25

250

1,823

1,911

88

Clinics (<19 beds)

Total*Hospital size criteria is scheduled to be changed in this document from FY2023 in association with lower the requirement for large hospitals from 500
to 400 beds in the 2018 revision of the medical fee.
*From 2021 one-time products are excluded from aggregation.
* #of increase is the pure increase of new users (including reclassification), in addition to “system renewal”.
（As of December 2022）
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22

Appendix - Public Business / Number of users with product introduced
Net Sales of Office system : JPY 121 Mio (FY2022)
Steadily increase achievements, targeting the Local Governments
and Public Corporations
Chubu area 1
Local governments

Local governments*municipality

Incorporated
administrative agency

Kinki area 4*Incorporated
administrative agency*Local Incorporated
administrative agency*National university
corporation

Shikoku area 2

Public organizations

Local governments*Public interest
incorporated(Tokyo city affiliatedorganization, etc.)*Organizations that needs
to manage official
documents

Press ban, etc.

Press ban, etc.

Press ban, etc.

x1

Tohoku area 3
Local governments

x2

Press ban, etc.

x1

x4

Kanto area 12
Local governments

x2

x1

IAAx3

x1

Public organizations

x3

Press ban, etc.

x4

Kyushu area 3
Local governments

x2

Public organizations

x1*Press ban*Confirming permission*Only users who have given permission to be listed after introduction will be listed.
(As of December 2022)
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23

Initiatives in Each Reportable Segment

🄫2023 FINDEX Inc.
🄫2022

Appendix - Medical Business
Market Trends

Medical digitalization shifts to the Cloud, market polarized by performance and price

From university hospitals and national centers to clinics,
launched comprehensive consulting services for medical institutions• Consulting services, which used to be a part of system sales, will be monetized from FY2023.
• Providing advanced and extensive consulting on how medical institutions can use the system to solve latentproblems in their hospitals.
Cross-selling

Cross-sell to existing customers and strengthen sales of packaged
software to new customers• 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 tofurther improve profit margins.

Medical Records

Installed

C-NoteImage Management

Installed

Claio

Starting with the implementation of Medical Avenue to Kyoto University,
plan to build infrastructure services for medical community.
• To build a more convenient and efficient medical system, we will connect
people, goods, and services related to medical examinations and aim tocreate a local medical community
🄫2023 FINDEX Inc.

25

Appendix - Public business
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 Affairs andCommunications.
• Directly manage large projects and outsource small to mid-sized projects todistributors.

Expand sales to administrative departments within hospitals byleveraging our existing sales channels in medical market• Aim to rapidly spread the adoption of our software, based on our huge successin 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 for implementation
after 2024.
• Assignment of personnel precisely to expand the scale of business, prepare
appropriately for the increasing number of large projects in the future
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26

Appendix - Health Tech Business
Market Trends

Increasing number of academic conferences and exhibitions are held in
both domestic and overseas markets.

DomesticOverseas

Expand sales via distributors

Launching in EU soon

• Target Sales : GAP-Screener/GAP• 1/3 of domestic ophthalmologists are our customers.
⇒ Sales to existing customers a priority, multiple
demos underway.
• Sales target for FY2022：20 units• Declaration of Conformity to EU-MDR completed.

Creating a market for medical checkup facilities
through a pay-per-use system• Target Sales : 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 FY2022：40 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 5years.
• Useful for detecting MCI (early-stage dementia) in addition to visual fieldabnormalities.
• Possibility of diversion to testing for other psychiatric and brain disorders.

🄫2023 FINDEX Inc.

• Starting sales via distributor Rexxam Co., Ltd.

• 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 FY2023：200 units

Formulating sales strategies for otherregions• Collaborating with partners to build sales networks ineach region.
• Starting with a preparation for regulatory approval to sales
India and ASEAN area via Toyota Tsusho Corp.

27

Progressive Software Creators
Always have, Always will.

🄫2023 FINDEX Inc.