March 24th, 2023
Company name:Name of representative:
Inquiries:

FINDEX Inc.
Teruo Aibara, President & CEO(Securities code: 3649; PRIME
Market)Atsushi Fujita, Director and Head of
Administration(Telephone: +81-89-947-3388)

Plan to Comply with the Continued Listing Criteria of the Prime Market
As of December 31, 2022, FINDEX Inc. (“The Company”) was no longer in compliance with the criteria to
continue its listing on the Prime Market of the Tokyo Stock Exchange.
The Company hereby announces that it has prepared a plan to meet the requirements for the continued listing
criteria as follows.
1.

Status of the Company’s Compliance with the Continued Listing Criteria and its Schedule
As of December 31, 2022, status of the Company's compliance with the criteria for maintaining its listingon the Prime Market was as follows, and it did not meet the requirement regarding Tradable Share Market
Capitalization. As shown in the table below, the Company will take the following measures to meet thecriteria for Tradable Share Market Capitalization for maintaining its listing by the end of fiscal year 2025, thefinal year of "Vision for 2025" the medium-term business plan.

Status of the Company(as of December 31,
2022)
Continued ListingCriteria
Eligibility

Number ofshareholders

Number of
tradable shares(units)Tradable Share
MarketCapitalization(¥ Billions)Tradable Share
Ratio (%)

Daily Average
Trading Value(¥ Millions)

5,738

138,094

7.7

51.8

70

800

20,000

10.0

35

20

×
✔
✔
End ofPeriod of Plan
December 2025
*The Company's compliance status is calculated based on the distribution of our share certificates, etc., as understoodby the Tokyo Stock Exchange as of December 31, 2022.

2.

✔

✔

Basic Policies, Challenges, and Initiatives to Comply with Continued Listing Criteria
The Company aims to comply with the criteria for Tradable Share Market Capitalization by achieving growth inbusiness performance through the steady implementation of "Vision for 2025" the medium-term business plan,and to improve market capitalization by reducing the cost of capital through enhanced investor relations activities.
For details, please refer to the "Plan to Comply with the Continued Listing Criteria of the Prime Market”.
Note: This is a translation of the document originally prepared in Japanese, based on information gathered at thetime of its preparation and actual results may differ from the targets due to various factors. In the event of any
discrepancies in words, figures or the like between this document and the original, the original Japanese version
shall govern.

3649

Plan to Comply with theContinued Listing Criteria of
the Prime Market
FINDEX Inc.
24th March 2023

🄫2023 FINDEX Inc.

Compliance status as of December 31, 2022
As of December 31, 2022, the Company does not comply with the “tradable sharemarket capitalization" among the criteria for maintaining its listing on the Prime Market.
Continued ListingCriteria

Tradable share market
capitalization (¥ Billions)

FINDEX Inc.

Eligibility

10.0

7.7

×

800

5,738

✔

20,000138,094✔

Tradable share Ratio (%)

35.0

51.8

✔

Daily average trading
value (¥ Millions)

20.0

70.0

✔

Number ofshareholders
Number of
tradable shares (units)

🄫2023 FINDEX Inc.

1

Basic Policy for Meeting the Criteria

1. Basic Policy
In order to meet the criteria for market capitalization of tradable shares, theCompany will enhance its corporate value by improving the quality andexpanding the scale of its business and enhancing shareholder returns, thereby
increasing its market capitalization and the market capitalization of its tradable
shares.
2. Period of Plan
In accordance with the basic policy, the Company will steadily implement its
medium-term business plan "Vision for 2025" in order to achieve the goals, andthe due date has been set on December 31, 2025.

🄫2023 FINDEX Inc.

2

Initiatives for Each Segments to Achieve Basic Policies

MedicalBusiness Proactively cross-sell software solutions to existing customers
 Increase profit margin by accelerating packaged solution sales by distributors
 Promptly launch next generation products and functions to support medical

digitalization⇒ Sales Target for FY2025 ：JPY 5,320 Mio

PublicBusiness

HealthTechBusiness Set our legally compliant public records management solution as the coreproduct, focus on sales to municipalities and public corporations⇒ Sales Target for FY2025 ：JPY 330 Mio

 Strengthen the GAP sales teams at domestic distributors
 Start the sales of GAP in the EU (accelerate from 2023)
 Start the sales of GAP in India (within 2024)
 Start the sales of GAP in ASEAN region (within 2024)
 Start the sales of GAP in the USA (within 2025)
 Launch GAP as a medical device to assess MCI (Mild Cognitive Impairment)(within 2025)⇒ Sales Target for FY2025 ：JPY 680 Mio

🄫2023 FINDEX Inc.

3

Expansion of Business and Improvement of its quality“Enriching Society with Technologies and Creation”
Fulfilling our responsibilities as a corporation supporting the mental and physical wellbeingof people, through Concentration of Management Resources, Acceleration of R&D and
Human Capital Investment

1

Concentration 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)3Addressing Key
Sustainability
Challenges• Contribute to reducing disparities in health care and improving

wellbeing of people (S)• Ensure good corporate governance and foster a diverse andinclusive workplace culture (G)🄫2023 FINDEX Inc.

4

Targets for Business Growth andAnnual Cash Dividends toward FY2025 (consolidated)(¥ Millions)

Net income(Estimate, ¥ Millions)(¥ Millions)

Annual Cash
Dividends
per Share(Target, ¥)FY2025

1,460

18.0

FY2024

1,188

15.0

FY2023923

11.0

FY2022(Actual)722

9.5

2022-2025
Change in %

202%

189%

🄫2023 FINDEX Inc.

(¥)

FY2022 (Actual)

FY2023 (Forecast)

FY2024 (Target)

Medical Software
Maintenance & Support
Health Tech Solutions
Public Sector Solutions
Annual Cash Dividends per ShareFY2025 (Target)
Consultation Services
Operating Income5Basic data for estimating market capitalization of tradable shares
Reference 1 Performance Trends of the Past 5 Years
Net Income(¥ Millions)

Closing Stock Priceat Year-end (¥)

Market Capitalization
at Year-end (¥ Millions)

P/E
Ratio (x)FY2022722

494

12,65617.5

FY2021636

1,006

25,77440.5

FY2020430

1,161

29,74569.1

FY2019499

1,354

34,68969.4

FY2018398

538

13,78434.9

Reference 2・Lowest P/E Ratio of the period above

17.5x

・P/E Ratio based on February 14, 2023*1 stock price

22.3x

・Average P/E Ratio of indirect competitors

19.7x*2

・Average P/E Ratio of the Information andCommunication sector in the prime market

23.0x

🄫2023 FINDEX Inc.

*3

*1：The Company released its financial results
for the fiscal year ended December 31,
2022 at 3:30pm JST on February 13,
2022*2：Average of 3 companies, based on our
research (February 2023)*3： Values published by Japan ExchangeGroup(February 2023)

6

Estimated Tradable Share Market Capitalization
Estimated Tradable Share Market Capitalization
From Reference 2
P/E Ratio: 17.5 to 23.0x / Tradable shares: 51.8%

Prerequisites(¥ Millions)

Net income

FY2025

FY2024FY2023

🄫2023 FINDEX Inc.

P/E Ratio (x)Market capitalization

Tradable sharemarket capitalization

23.0

33,58017,394

17.5

25,55013,23423.0

27,324

14,153

17.5

20,79010,76923.0

21,22910,99617.5

16,152

8,366

1,460

1,188

923

7

Strengthening IR Activities and Shareholder Return Policies
Strengthening IR Activities
The Company believes that providing a broader range of information about itself to a greaternumber of shareholders and investors will lead to bridge information gap and increase
understanding of its business.
The Company will strive for appropriate and fair disclosure of information in a timely manner andenhance various initiatives aimed at creating opportunities to raise awareness.
• Proactively publish press releases to our stakeholders for their deeper understandings of the Company’sbusiness performance and its growth.
• Timely distribution of recorded presentations of financial results briefings and its full-text transcripts.
• Disclose financial materials and related information in English to overseas investors, and arrange 1-on-1
meetings throughout the years.

Shareholder Return Policy
The Company will execute well balanced payment of dividends steadily in line with the growth of its
business. Considering its future capital policy, business strategy and the current growth stage, theCompany aims to further return profits to shareholders by increasing net income to achieve payout
ratio of 30% which is the basic policy regarding the shareholder returns.
• Flexibly consider increasing shareholder returns, including share buybacks, after reaching the target for market
capitalization of tradable shares.
• Aggressively invest in business, including M&A, to increase corporate value and realize shareholder returns in
exchange for dividends.
🄫2023 FINDEX Inc.

8

Appendix
Vision for 2025 (Revised)
株式会社ファインデックス
Visionfor20232025
th February
13(修正版）
excerpted

🄫2023 FINDEX Inc.

Our Efforts

2011-2022 - Executed active investments in R&D / Acquired technologies & knowledge(￥ Millions)

FY2017*1

FY2022Growth
Rate

3,311

4,541

+37.1%

547

1,055+92.8%

Ordinary Profit Margin

16.5%

23.2%

+6.7pp

ROE

13.0%

17.9%

+4.9ppResearch Progress on
GAP*2

40%

100%

Research progress on
DMO*3

15%

97%

Initiatives of the past 11 years
2011～2022● Established de facto standard products
for hospital internal information anddata infrastructure● Proceeded advanced joint R&D with
university hospitals, focusing on thedevelopment of medical software● Executed R&D of medical devices andits application to clinical data analysis● Developed DocuMaker Office with acore function of public document
managements to enter into the public
sectors market

5Yrs KPINet Sales

Ordinary Profit*1 Consolidated in 2017. / *2 GAP: Gaze Analyzing Perimeter / *3 DMO: DocuMaker Office
🄫2023 FINDEX Inc.

10

Our Future

Engaging in business/social contribution activities
towards the healthy and sustainable society
Concentration ofManagement Resources

Accelerationof Advanced R&D

Addressing Key
Sustainability Challenges

2011-20202021-2025-2030

Accumulation

Execution

Dedication• Utilization of refined technologies
and knowledge through R&D• Fostering healthy andprosperous society

Digitally Connecting
Medical Communities

Developing
new technologies
for healthy livings• Active investments in R&D• Acquisition of technologies andknowledge

Equal Accessto Medical Services
🄫2023 FINDEX Inc.

11

Management Optimization and Growth Strategies 2023-2025“Enriching Society with Technologies and Creation”
Fulfilling our responsibilities as a corporation supporting the mental and physical wellbeingof people, through Concentration of Management Resources, Acceleration of R&D and
Human Capital Investment

1

Concentration 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)3Addressing 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)🄫2023 FINDEX Inc.

12

Management Optimization and Growth Strategies 2023-2025
1. Concentration of Management Resources
Restructure medical solutions
business to sustain growth

Prioritize M&A
as a key growth strategy

 Efficiently sell the packaged software
products and services to realize thesales operation optimization and highprofit margins

 Reinvest equity capital in businessacquisitions

 Strengthen the fundamentals of
medical solutions that will set our
products apart as an advanced
feature for the coming years

 Minimize the software customization
to allocate development resources tothe following business areas:
 Digitalization of medical information
infrastructure - Participate in Japan
medical data standardization project
as a key player in 2023
 Refining solutions for public sectors Launch a full version of DocuMaker
Office by 2024

🄫2023 FINDEX Inc.

 Strengthen existing businesses Extend the scope of business into
peripheral areas

Strengthen partner sales
 Allocate sales resources to marketing
planning by delegating software sales
and support activities to distributors
 Provide trainings to medical device
distributors to accelerate salesdelegation
 Implement regional exclusive
distributor sales models for overseas

 Set up a M&A team within 2023
 Achieve desired ROI of 15% by 2024,with a total of JPY 3 billion inplanned investments

 Transfer 20% of business in large
medical institutions from direct topartner sales by 2025
 Develop 5 or more expert sellers for
GAP sales among distributors
 Establish strong overseas sales
structures with distributors in eachregions by 2025

13

Management Optimization and Growth Strategies 2023-2025
2. Acceleration of Advanced R&D

Reconceptualize our presence
as a R&D-oriented company

Improve internal training systemand enable dynamic staffing
including management levels

 Proactively conduct joint researchbased on industry-academiagovernment collaboration to develop
innovative products

 Maximize the talent development of
employees by allowing them tochange divisions in a flexible mannerbased on their preferences Flexible transfer of human resourcesfrom the system development
division to the R&D unit

 Develop a screening device for MCI(Mild Cognitive Impairment) by 2025,
together with Kyoto University and
AMED (Japan Agency for Medical
Research and Development) Start a new R&D project on:- Utilization of virtual space- AI technologies to support medical
practices and operations

🄫2023 FINDEX Inc.

Acquire andretain the right talent Efficiently open regional and overseas
offices to extend job opportunities
 promote graduate schools and MBA
programs for employees Adopt flexible work styles

2022

2025

(Actual)(Target)# of employees in remote
areas

0

5

# of employees offshore

02# of employees applied for
graduate school scholarshipby Findex

04# of employees applied for
reduced working hours

19

25

 Implement a job-based talentmanagement system from 2023
 Apply cross-departmental internships
to 20% of the employees to deepenand support their careers by 2025

14

Management Optimization and Growth Strategies 2023-2025
3. Addressing Key Sustainability Challenges
Support and engage ininternational initiatives forclimate change (E) Promote disclosure of non-financial
information in line with the TCFD
framework Support the challenges of externalorganizations in their efforts todevelop a sustainable society Explanation of our sustainability
related activities: To be announced
in the annual securities report inMarch 2024
 Enhance disclosure via corporatewebsite ESG investment target to beplanned: Up to 100 million yen by
December 2025
🄫2023 FINDEX Inc.

Contribute to reducing disparities
in health care and improving
wellbeing of people (S)Ensure good corporate governanceand foster a diverse and inclusive
workplace culture (G) [External] Increase access to early
detection of glaucoma and other eye
diseases by promoting the use of GAP,
an in-house developed perimeter [External] Realize a framework thatallows any person to receive smoothand efficient medical care at large
hospitals, introducing telemedicine andutilizing location information
 [Internal] Creating and maintaining ahealthy work environment with highlevels of employee engagement

 Strengthen information security andensure compliance

2022(Actual)# of visual field tests performed
with GAP at checkups organizedby local governments# of medical facilities
implemented GAP# of medical facilities
implemented Medical Avenue
Employee Survey Response
Rate
Employee Turnover Rate

1

 Support employees develop theirtalents in line with their career goals
through internal programs and makeadjustments required for employees
to accept promotions

2025

2022

(Target)707 10,00035 Foster an organizational culture thatcan withstand changes in the external
environment by facilitating diversity inhiring and promotion

2025(Actual)(Target)10% of employees with disabilities

1.0%

2.0%

% of foreign employees

0.3%

1.5%

% of female managers

3.8%

8.0%

% of independent outside
Directors

33.3%

44.4%

# of incidents related to
information security

1,550
5

96.0%

96.0%

6.5%

4.0%

15

Business Strategy 2023-2025

Restructuring and optimization of our business portfolio
Challenging future for innovation, leveraging our strengths and specialties

MedicalBusiness

PublicBusiness Proactively cross-sell software solutions, to more than 1,900 existing customers (as ofDecember 2022) mainly the large hospitals
 Extensively install 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
as 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.

HealthTechBusiness

🄫2023 FINDEX Inc.

 Overseas: Establish sales structures not only in the EU countries but also in India,
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
16

Business Strategy 2023-2025
Our Targets and the Roadmap – Medical Business
Promote comprehensive support
for smooth hospital operations
by upgrading our primarybusinesses to the next level, tocontinue a stable growth

Medical Solutions Sales Strategy• Focus on the sales of packaged solutions with high profit margin (e.g. Claio, DocuMaker)• Extend cloud-based solutions for supporting medical operations and hospital management• Roll out and nurture a business on information infrastructure to support medical digitalization• Acquire new customers with new features (e.g. Updated security systems and backup solutions for clinical records)• Start consulting service for medical institutions and public organizations(¥ Millions)

6,000■ Medical Software■ Maintenance & Support

5,000■ Consultation Services

5,320
5,066

4,705
4,352

4,000

3,000
Net Sales：JPY 4,705 Mio• Stimulate collaborations with other

2,000
Net Sales：JPY 4,352 Mio• Focused on the sales of
1,000

packaged software• Shifted to a business modelwith high profit margincompanies within the industry• Start a business on information
infrastructure to support medical
digitalization (e.g. digital prescription,
insurance verification)• Accelerate sales of cloud-based
solutions

Sales Target：JPY 5,066 Mio• Accelerate the business on
information infrastructure to
support medical digitalization• Expand consulting services for
hospitals and clinics

Sales Target：JPY 5,320 Mio• Shift our medical solutions fromon-premise-based to cloud-basedor hybrid services• Establish a dedicated business
unit for medical digitaltransformation

0
FY2022(Actual)FY2022(実績)

FY2023(Forecast)
FY2023(予想)

FY2024(Target)FY2024(目標)

FY2025(Target)FY2025(目標)

 Utilize medical data for drug discovery and medical device development (2026)
 Promote My Number Card connected to cloud-based network to improve usability, enabling patients to access good health care regardless of their locations (2025-2030)
 Install our digitalization solutions to over 50,000 medical facilities and pharmacies (2026)
🄫2023 FINDEX Inc.

17

Business Strategy 2023-2025
Our Targets and the Roadmap – Public Business
Rapidly increase our market share in
public sector with our public records
management and e-approval solutions

DocuMaker Office Sales Strategy• Hire more engineers and sales staffs to enlarge our implementation capacity• Find the right target who needs the public record management (municipalities and public hospitals)• Promote subscriptions and provide the latest functions steadily through a recurring revenue model• Deploy tailored functions for each region / organization to differentiate our user-oriented product• Accelerate sales via already contracted medical solutions distributors(¥ Millions)

350

300

330
Net Sales：JPY 121 Mio

Net Sales：JPY 160 Mio

Sales Target：JPY 207 Mio# of installation: 25
organizations# of Installation: 30 organizations# of Installation: 40 organizations• Hire more software developers to• Complete product upgrade; hire more engineers• Software implemented not only

upgrade the product for larger
organizations• Target large municipalities andaccelerate installations via distributors

250

at the municipalities but also at
the central government
affiliated organizations anduniversities

and sales staffs to build a larger business unit

• Launch a non-customized package and further
advance distributor sales

207
Sales Target：JPY 330 Mio

200# of Installation: 57 organizations• Complete software integration

160

with major accounting solutions

150• Proactively participate in public

121

sector bids

100

50

0
FY2022(実績)(Actual)FY2022

FY2023(Forecast)
FY2023(予想)

FY2024(Target)FY2024(目標)FY2025(Target)FY2025(目標) Lead users to subscribe DocuMaker Office to establish a stable recurring revenue model Aim to install to 220 organizations in total by 2027
🄫2023 FINDEX Inc.

18

Business Strategy 2023-2025
Our Targets and the Roadmap – Health Tech Business
GAP/GAP-screener Sales Strategy

Aim for global use of GAP fromdeveloped to emerging countries,
leveraging its uniqueness andaffordability as the strong points(¥ Millions)800• Improve the speed and accuracy of the test through additional R&D• Strengthen the internal technical sales team to increase the number of domestic/overseas sales• Develop and allocate technical sales resources within distributors• Acquire medical regulatory in respective countries to accelerate the sales• Proceed joint R&D with domestic/overseas key players, publish research papers to drive product awareness• Proactively participate in exhibitions and congresses both inside and outside Japan[Units Sold] ■ Eye clinics and hospitals Domestic■ Check up facilities Domestic ■ Medical Facilities Overseas[Net Sales] ■ Eye clinics and hospitals Domestic ■ Check up facilities Domestic ■ Medical Facilities Overseas ■ EMC(Units Sold)

800

Healthcare*

Sales Target：JPY 480 Mio, 620 Units

700

680

700

• Complete acquisition of medical approval inIndonesia and Thailand (March)• Start sales in Indonesia and Thailand (June)

600

500

Net Sales：JPY 69 Mio, 21 UnitsNet Sales：JPY 200 Mio, 260 Units• Concluded GAP distributorship• Start sales EU countries (April)• Complete acquisition of medical

200

agreement with Toyota Tsusho
Corporation for India and ASEAN
countries (May)• Concluded GAP distributorshipagreement with Rexxam for EU, Middle
East and North African countries(May)• GAP conformed to the new EU medical
regulatory MDR (August)

100

69

400

300

480

600

Sales Target：JPY 680 Mio, 800 Units

500• Complete acquisition of FDA approval andstart sales in USA• Launch onto the market as an assessment

approval in India (October)• Start sales in India (December)

400

device for MCI (Mild Cognitive Impairment)

300
200

200

100

0

0
FY2022
FY2022 (Actual)(実績)

FY2023(Forecast)
FY2023(予想)

FY2024(Target)FY2024(目標)FY2025(Target)FY2025(目標) Develop a new standard of examination which multiple diseases can be diagnosed with a single test (FY2027)
 Establish a new business involving drug discovery and development of medical treatment by utilizing data acquired by GAP (FY2027)
🄫2023 FINDEX Inc.

*EMC Healthcare (Changed from consolidated subsidiary to equity method affiliate effective July 2022 )19

Numerical Targets (Consolidated)(¥ Millions)(¥ Millions)

FY2022(Actual)FY2025(Target)

(¥)

7,000

20.0
6,330

(¥ Millions)

18.0

6,000

Net Sales

4,541

5,754
16.0

6,330

15.0

5,065
5,000

14.0

4,541

Ordinary
Income

1,055

2,100

18.0

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

33.7%

2,100
1,710

31.2%

4.0

1,330
1,000

1,055
2.0

Annual Cash
Dividends per
Share

JPY 9.50

JPY 18.000

0.02022(実績)
FY2022(Actual)2023(予測)
FY2023(Forecast)2024(目標)
FY2024(Target)

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

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

20Cautionary Statements Regarding Forward - Looking Statements

This material is provided for informational purposes only and does not constitute a solicitation of any action based on this material.
This document (including the business plan) has been prepared by the Company based on reliable information available at thetime of preparation, but it contains risks and uncertainties, and the Company assumes no responsibility for its accuracy orcompleteness. The Company assumes no responsibility for the accuracy or completeness of the information contained in thismaterial, even if it is desirable to update or revise forecasts or plans.
The Company assumes no responsibility whatsoever for any losses that may arise from investment decisions based on theforecasts and target figures contained in this document.
The copyright of this material belongs to Findex Inc.
No part of this report may be reproduced or distributed in any form or by any means without the prior written permission of theCompany.

Note: This is a translation of the document originally prepared in Japanese, based on information gathered at the time of its
preparation and actual results may differ from the targets due to various factors. In the event of any discrepancies in words, figuresor the like between this document and the original, the original Japanese version shall govern.
🄫2023 FINDEX Inc.

21

🄫2023 FINDEX Inc.