This document has been translated from the Japanese original for reference purpose only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

3649

H1FY2024 Financial Results Presentation

FINDEX Inc.
Aug 13, 2024

🄫2024 FINDEX Inc.

Cautionary 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 the time of preparation, but it contains
risks and uncertainties, and the Company assumes no responsibility for its accuracy or completeness. The Company assumes no responsibility for the accuracy orcompleteness of the information contained in this material, 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 the forecasts and target figures containedin 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 the Company.
In the graphs and tables of this document, some of the figures are rounded up or truncated for the purpose of adjusting fractional values.

🄫2024 FINDEX Inc.

H1 FY2024•

Upward revision of H1 Plan: High sales and profit in Medical and Public Sector Business

KEY TAKEAWAYS•

Q2 operating profit fell due to HR investments but is as expected

H1 Net SalesYoY

Q2 Net Sales+42.5 %

(Q1 Net Sales YoY

YoY

69.7 %)(1.081 billion yen)

H1 Operating Profit
YoY

YoY

2.99 times)•

Exceeded initial plan (upward revision disclosed on July 26)•

Absorbed cost increases, including personnel expenses,
due to significant revenue growth•

Recruitment and personnel investment progressed asplanned, with 13 more employees since the beginning of
the period

🄫2024 FINDEX Inc.

Q2 Operating Profit

2.37 times(Q1 Operating Profit YoY+8.4 %- 28.2 %(78 million yen)•

Q2 sales hit a record high despite the typical slow period•

Decrease in Q2 operating profit mainly due to HR investments,
but within expectations•

Order backlog at 1.129 billion yen, decreased by 21% YoY but
increased by 30.9% QoQ

3

H1 FY2024
Financial Summary•

Significant increase in sales and profit YoY due to robust demand in Medical and Public Sector
Business•

Decline in profit in the Health Tech business is due to a decrease in sales volume, coupled withincreased staffing and salary raises（¥ Millions）

H1 FY2023

H1 FY2024

FY2024
Forecast

YoY

2,249

3,205

42.5%

5,782

2,152

3,038

41.4%

-

Public Sector Business

57

143

152.5%-

Health Tech Business

39

23(41.6%)-

Cost of sales

968

1,282

32.4%

-

Gross profit

1,280

1,923

50.2%

-

56.9%

60.0%

-

-

SG&A

883

982

11.3%

-

Operating proft

397

940

136.7%

1,574

Medical Business

469

976

108.1%-

Public Sector Business

(11)

48

-

-

Health Tech Business

(60)

(84)

-

-

17.7%

29.3%

-

-

Recurring profit

414

945

128.1%

1,591

Profit attributable to owners of parent

283

701

147.0%

1,097

Net sales
Medical Business

Gross profit margin

Operating profit Margin(Note) Profit attributable to owners of parent includes tax adjustments resulting from the salary increase promotion tax system
🄫2024 FINDEX Inc.

4

Market Trends and Our
Financial Performance

The pandemic of COVID-19
Digitalization of Medical Claims
Adoption of Electronic Medical Record Systems

Initiatives to Standardize Medical
Information

Forecast
5,782（¥ Millions）
6,000
Electronic Medical Record (EMR) Adoption Rateat over-400-bed hospitals：91.2%

2022：Medical DX Reiwa Vision 2030

5,191
4,968

5,000

2018：The Next Generation Medical Infrastructure Act
Institutionalization of Telemedicine

4,541
4,281
4,004

April 2014：Consumption Tax Hike

4,000

3,603
3,288

2021：Establishment of theDigital Agency Online Credential
Verification Initiated

3,311

2,951
3,000

Oct 2019: Consumption Tax Hike2,863

Dec 2024: Transition to My Number
insurance cards planned, current
insurance cards to be phased out

2,382
1,987
2,000
1,543

1,000

2023：Start of Electronic Prescription
Operation

0
2011

2012

2013

2014

2015

2016

2017

Q1

🄫2024 FINDEX Inc.

Q2

2018

Q3

Q4

2019

2020

2021

2022

2023

2024

H1 FY2024: Steadily proceeding to achieve theyearly financial targets

5Sales Ratio by Segments

H1FY2023

H1FY2024

Health TechBusiness¥39 Million

Public Sector
Business¥57 Million¥3,205
Million¥2,249Million

MedicalBusiness¥2,153 Million

🄫2024 FINDEX Inc.

Health TechBusiness¥23 Million

Public Sector
Business¥144 Million

MedicalBusiness¥3,039Million6

Balance Sheet•

Cash up from debt recovery: Need for effective use•

Equity ratio remains at a high level of 83.2%

FY2023

H1FY2024

Changes(¥ Millions)

B/S
Cash and deposits• Accumulated past profits

2,693

4,435

1,742

1,924

735

(1,188)

221

125

(95)

have increased cash and

Raw materials and supplies

118

116

(1)

deposits to 4.4 billion yen.

Other

50

55

5

5,006

5,468

461

Tangible assets

89

89

0

• Recognizing effective use of

Intangible assets

290

296

5

capital, including M&A, as a

Software

290

295

5

key challenge

547

560

12

5,934

6,414

479

TOTAL CURRENT LIABILITIES

772

797

25

Non-current LIABILITIES

316

270

(45)

0

0

0

TOTAL LIABILITIES

1,088

1,068

(20)

NET ASSETS

4,845

5,345

499

Shareholders’ equity

4,844

5,331

486

TOTAL LIABILITIES and NET ASSETS

5,934

6,414

479

Notes and accounts receivable - tradeand contract assets
Merchandise and finished goods, work inprogress

TOTAL CURRENT ASSETS

Investments and other assets

TOTAL ASSETS(long-term and short-term interest-bearing liabilities)

🄫2024 FINDEX Inc.

and improved collection ofreceivables at the end of Q1

The receivables collection
terms remain unchanged

7

FY2024- Factors Contributing•

Q1: Recorded significant improvements in net sales and gross profit

to Changes in Operating Profit•

Q2: Profit decreased YoY due to higher COGS and SG&A expenses

Factors Contributing to Changes in Consolidated Operating Profit（¥ Millions）

1,200

-30
-53

129

1,000

-46
46

940
78

800

498

• Q2: Slight decline in gross profit
due to increased procurement
and labor costs from large
projects• Increased personnel expenses
due to hiring reinforcement andsalary raises

600

397
862

400

• H1 personnel expenses in
COGS and SG&A increased by
1.124 billion yen (YoY 12.4%)

109

200

• Increase in SG&A expenses
considered under control

288

0
Q1
Q1-2FY2023
Operating profit

Q2

Net sales factors

Q1

Q2

Gross profit margin factors

Q1

Q2

SG&A factors

Q1-2FY2024
Operating profit(Note) Personnel expenses include labor costs in COGS, and in SG&A: executive compensation, salaries and allowances including overtime, share-based compensation expenses, statutory welfare expenses,
employee benefits, and recruitment and training expenses

🄫2024 FINDEX Inc.

8

Medical Business 1/2•

Achieved record-high profits in Q1 due to strong demand, all within our planned scope•

Released a solution utilizing generative AI and a cloud-based service•

Average Numbers of Soultions
Installed per Medical Facility

Net Sales and Operating Profit(¥ Million)

Q2 is typically a slow period. Focusing on sales
activities for year-end and next-term
replacements and establishing the SE system

2,500

•

6.00

Multiple new product development projects areunderway

1,997
2,000

•

Consulting department steadily received orders•

There is minimal resistance to the current

5.00
1,615

4.61
4.33

4.30

4.63

4.39

proposed price increase

1,500
4.00
1,179

Continued cross-selling to existing customers•

A subsidiary Fitting Cloud Inc., has released

1,168
1,042
973

1,000

•

3.00

2.86
2.41

500

2.00

2.19

2.96
2.49

2.22

3.06

2.53

2.34

3.10

3.15

"CocktailAI," a solution that supports
2.67

2.70

2.40

2.43

operational efficiency using generative AI•

Started providing "DocuMaker Cloud," a cloudbased document management, targeting small
medical institutions and clinics

Key Initiatives
1.00

0
Q1

Q2

Q3

Q4

Q1

FY23/12Net sales

Q2

FY24/12
Operating profit

2020

2021

2022

2023

2024Q2Large hospitals

Medium sized hospitals

Small hospitals

Clinics•

Expansion of cloud-based services•

Strengthening promotions throughcollaboration between our sales unit andcorporate communications

🄫2024 FINDEX Inc.

9

Medical Business 2/2•

The number of implemented facilities has steadily been increasing•

Balanced orders for various products and services through a cross-selling strategy(# of Facilities） Changes in the Number of Medical Solutions Users
2,500
99.3%

98.8%

99.4%

MapleNote
DocuMaker

C-Scan

2,052

1,911
1,757

100.0%

Claio related products

98.3%
1,987

2,000

Medical Business
Composition of Sales by Products

MoveBY

90.0%

1,823

REMORA

1,500

Claio and related
products
36.8%

Maintenance
19.1%

80.0%

Radiology

Consulting
Maintenance39%

HardwareLicense

1,000

70.0%

Consulting
3.8%

Other
Fitting Cloud（¥ Million）

500

60.0%

万円）
1,200
1,000

0

50.0%
2020

2021

2022

2023

2024 Q2

Trends in Distributor Sales
1,057

1,036

956

800
621

588

1H2023

1H2024600
400

Large hospitals

Medium sized hospitals

Small hospitals
200

Clinics

OthersRetention Rate

*Calculation changed as categorization of large hospitals revised from 500 or more beds
to 400 or more beds following the revision of medical service fees in 2018
*Consumers of one-time products are excluded
🄫2024 FINDEX Inc.

0
2021

2022

2023

*Figures for the now-removed Public Sector Business is included up to FY2022

10

Public Sector Business•

Demand is sustained and expanding, with further business growth expected•

Implementation in a prefectural office fosters a virtuous cycle of winning similar municipal projects

Net Sales and Operating Profit(Quarterly)（¥ Million）

Net Sales and Operating Profit(¥ Million)•250

10 package installed for a municipality and 1
packages installed for hospitals during Q2

120

200

106

187

Q3+Q4

•

Net Sales
150

100

Q4

Cumulative number of installations is 47.

144（H1）
Q2

121

Cancellation of the service is zero since theservice launch

100
75

80

57（H1）
50

Order backlog stands at 72.7% YoY

Q1•

Started cross-selling to large facilities•

The monthly fee has increased 1.8 times YoY•

Increase in inquiries from potential distributors.

0
(33)

40

•

41
Q1

55

60

Q3

38

36

Operating Profit(50)
FY2022

21

（# of

20

FY2023

FY2024

Enhancing and strengthening the sales structure

Cumulative number of users

Users）Key Initiatives
40,000035,000(20)•

Strengthen recruitment and employee

30,000trainings to enhance our internal resources

25,000for further business expansion

20,000•15,000

(40)
Q1

Q2

Q3

Q4

FY23/12Monthly usage revenue

🄫2024 FINDEX Inc.

Q1

Q2

FY24/12
OthersOperating profit

Advance in securing new distributors andenhance partnerships

10,000
5,000

•

0
2019

2020

2021

2022

2023

2024Q2

Continuing to expand sales channels
targeting large-scale organizations

11

Health Tech Business 1/2•

Positive elements are aligning, including media exposure and journal publications•

Continuing efforts in overseas sales, aiming to expand sales channels in the ASEAN region

Domestic
GAP/GAP-screener
Cumulative Numbers of Sales andDomestic Demonstrations

Net Sales andOperating Profit(¥ Million)(Units)60•

One GAP unit was sold in Q2•

Joint research result on GAP performance with Kyoto

University was published in a journal by the American

200

Academy of Ophthalmology
40

180

37

•

160

27

specialty magazines and media exposure

22
20

•

140
3

2

1

Continuing training sessions for distributors

Overseas

120

0

•

100

Conducting market research on sales in the ASEAN
region with a medical device distributor on site

80

(20)

Increased inquiries thanks to articles in ophthalmology•

Coordinating with REXXAM Co., Ltd for lot shipmentsin the second half of the fiscal year

60
(40)

Key Initiatives

40
•

20

(60)

Drive R&D efforts towards the implementation ofcontrast sensitivity testing, a diagnostic tool for0

cataracts
Q1

(80)
Q1

Q2

Q3

FY23/12

Q4

Q1

Q2

FY24/12

Q2

Q3

Q4

Q1

FY2022# of demonstrations

Q2

Q3

FY2023Q4Q1Q2FY2024# of total units sold•

GAP has been selected for a project by AMED
(Japan Agency for Medical Research andDevelopment), as it can be used to detect not only

Net sales

Operating profit*Only the numbers of demonstrations by Findex are aggregatedvisual field abnormality, but also MCI. Possibility ofapplying it to tests for other mental disorders andbrain diseases
🄫2024 FINDEX Inc.

12

Health Tech Business 2/2

A journal on GAP has been published in the American Academy of Ophthalmology"Ophthalmology Glaucoma"

Abstract:
A comparison between the GAP and the most commonly used Humphrey Field Analyzer (HFA) was conducted toevaluate the performance of GAP. The results showed a high correlation
Gaze movement when "visible"

Reaching the
new stimulus
directly

Example of gaze movement when “not visible"

Reaching thetarget with achanging gaze
trajectory

Unable toreach thenew stimulus: Gaze trajectory★

: New stimulus (target point)

Sales Progress of GAP:
The accuracy of GAP has been objectively and academically proved, contributing
to the improvement of its product recognition and performance assurance, resulting
in the accelerations of promotional activities. Media exposure has also increased.
Publication of case study based on feedback from our users and patients also
shows favorable evaluations of GAP. Although overseas shipments are significantly
delayed from the original plan, adjustments are being made with REXXAM Co., Ltd
for shipments in the second half of the year.

🄫2024 FINDEX Inc.

13

Changes in Numbers of
Employees•

HR investment in recruitment and talent is progressing smoothly•

Employee count up by 13; full-year target is 20•

Annual personnel costs per employee are expected to increase by 6.0% YoYChanges in Numbers of Employees (Consolidated)(# of Employee)

350
300
230

250
210
0

200

12

7

5

283
2

269

274

280

285

281

282

10

263

273
242

290

8

282
2

276

210

218

290
4

290

296

303

5

6

6

289

286

285

290

297

236

Admin dept.
19%50

Programmer
25%

Customer
Service
15%

0
2016
•
•
•

Employees composition ratio

6

150
100

292
3

2017

2018

2019

2020

2021

2022

2023

Q1

A consolidated subsidiary Fitting Cloud Inc. established in 2021
EMC Healthcare Co., Ltd. excluded from consolidation in 2022
Calculated based on the number of permanent employees. Excludes executives, parttime employees, and temporary staff

Q2

Q3

Q4

2023

Q1

Q2

Sales・Software

2024

Subsidiary

Developer
40%

FINDEX

Growth Rate of Personnel Expenses per Capita
110%

Programmer
Customer Service

Sales・Software Developer
Admin dept.

Internal Audit
105%

100%
Q4
2022
•
•

Q1

Q2

Q3
2023

Q4

Q1

Q2
2024

Indexed to Q4FY2022
Personnel Expenses Per Capita are Calculated Excluding J-ESOP and Overtime Pay, Based on Salaries and Employee Benefits

🄫2024 FINDEX Inc.

（As of June 30, 2024)

14

FY2024 - Forecast for
Financial Performanceand Dividends•

H1 progress rates are high, financial figures generally align within planned expectations•

Considering the increase in personnel expenses for long-term growth, profit margins are expected tobe limited for the full year(¥ Million)

FY2023 Actual

FY2024 Forecast

H1FY2024
Progress rate

YoY

Net sales

5,191

5,782

+11.4%

55.4％

Operating profit

1,496

1,574

+5.2%

59.7％

Recurring profit

1,527

1,591

+4.2%

59.4％

Profit attributable to owner of parent

1,059

1,097

+3.6%

63.9％

Interim dividend (yen）

4.00

7.00

-

-

Year-end dividend (yen)

9.00

8.00

-

-

Full-year dividend (yen)

13.00

15.00

-

-

Earning per share（Plan）

🄫2024 FINDEX Inc.

15

FY2024 Initiatives toAchieve Business Targets•

Achieve stable profit growth through improved productivity and strengthened sales capabilities•

Focus on investing in talent for long-term value enhancement and growth•

Explore M&A opportunities and implement various strategies for business expansion✔ Address the increase in personnel expenses• Active recruitment and employment retention• Accelerate the deployment of cloud-based solutions to large hospitals✔ Execute an appropriate price revisions

Medical Business✔ Promote cross-selling strategy

× Full-scale expansion of Claio overseas sales
Due to the acquisition of TTC’s Indian sales partner by another company, which has made sales andmaintenance uncertain, the project is being withdrawn• Expand medical information consulting services to other industries• Further secure talent for business expansion• Build relationships with distributors and partners to pioneer mid-sized projects in earnest

Public Sector Business• Strengthen collaboration with other company's’ software• Enhance support infrastructure with the increase in the number of customers✔ Accumulate expertise through implementation in large-scale facilities✔ Enhance product features with a user-oriented approach•

Improve awareness and understanding of the product, as well as the necessity to explore accelerators✔ Add intuitive interfaces and guided features for healthcare staffs’ ease of use

Health Tech Business• Add new testing features to the product and commence clinical trials• Rebuild the sales structure, including training for sales representatives at distributors• Execute initiatives to start sales in India and ASEAN countries✔ Publish a research paper in academic journals

🄫2024 FINDEX Inc.

16

Appendix

🄫2024FINDEXFINDEXInc.
Inc.
🄫2024

Appendix

Net Sales（¥ Millions）

+8.4％

2,500

2,125
2,000
1,717

1,631
1,463

1,500

1,542

1,455
1,265

1,038

1,225
1,081

997

969

943

1,000
629

1,252

1,108

766

707

500

0
Q1

Q2

Q3

Q4

FY20/12

Q1

Q2

Q3

Q4

Q1

FY21/12
Medical Business

Q2

Q3

FY22/12Public Sector Business

Q4

Q1

Q2

Q3

FY23/12Q4Q1Q2FY24/12

Health Tech Business•

H1 net sales exceeded last year’s•

Mainly driven by the Medical Business•Net sales of Public Sector Business significantly increased by 77% YoY•Demand was high in medical solutions aimed at improving the working conditions of doctors, as well as optimizing hospital operations* The "Accounting Standard for Revenue Recognition“ has been applied from FY2022* Business segments changed from FY2023. As for FY2022 figures are reallocated based on the change madeUntil FY2022 Public Business was included in Medical Business. Figures above are unaudited
🄫2024 FINDEX Inc.

18

Gross Profit Margin and CoGS (Fixed/Variable)

Appendix（¥ Millions）

2,500

80%
69.5%

69.7%

70%

63.2%

64.5%

63.0%

62.6%

2,000

58.2%
48.8%

48.5%
1,500

56.7%

55.3%

55.1%

53.8%
57.1%

55.4%

60%

50%

44.2%
43.7%

40%

40.1%

+2.7％

1,000

30%

20%
500
10%

0

0%
Q1

Q2

Q3

Q4

Q1

FY20/12

Q2

Q3

Q4

FY21/12
CoGS(fixed)

Q1

Q2

Q3

FY22/12
CoGS(Variable)

Gross Profit

Q4

Q1

Q2

Q3

Q4

Q1

FY23/12Q2

FY24/12Gross Profit Margin•

The change in fixed costs is not significant, but there is an increase in variable costs such as procurement costs and labor costs due to large projects•

In Medical Business, the expansion of profitable cross-selling, growth in consulting services, and increased package sales have contributed to profitability* The "Accounting Standard for Revenue Recognition“ has been applied from FY2022
🄫2024 FINDEX Inc.

19

Quarterly Results on SG&A

Appendix（¥ Million）

600

497
500
457

451
422
399

419

431

421

396

503
480

453

426

392

400

300

200

+12.3％
100

0
Q1

Q2

Q3

Q4

Q1

Q2

FY21/12

Q3

Q4

Q1

FY22/12
Personnel・Recruitment and Training Expenses

Q2

Q3

Q4

FY23/12R&D

Advertising

TravelQ1

Q2

FY24/12
Rent

Others• Increased personnel and recruitment expenses due to strengthening hiring efforts• Personnel and recruitment training expenses increased by 12.3% YoY• Employee count (consolidated) for Q2 FY2024, including directors and temporary staff, was 329
🄫2024 FINDEX Inc.

20

Operating Profit

Appendix（¥ Millions）

1,000
862
700

800

540

600

451
399

370
400
214

288

217
85

200

109
78

38

32

0

(200)
Q1

Q2

Q3

FY21/12
Medical Business

Q4

Q1

Q2

Q3

Q4

FY22/12Public Sector Business

Q1

Q2

Q3

Q4

Q1

FY23/12
Health Tech Business

Q2
FY24/12

Operating Profit* The "Accounting Standard for Revenue Recognition“ has been applied from FY2022* Business segments changed from FY2023. As for FY2022 figures are reallocated based on the change madeUntil FY2022 Public Business was included in Medical Business. Figures above are unaudited
🄫2024 FINDEX Inc.

21

Order-to-Acceptance Timeline

Appendix

Revenue Composition Ratio Changes by Order Placement Period
More than 12
months ago

Less than 3months ago

More than 12
months ago

9-12monthsago
6-9monthsago

FY2021

3-6 months ago

Less than 3months ago
More than 12
months ago
3-6 months
agoLess than 3months ago

FY20239-12 months
ago

9-12
months ago

More than 12
months ago

6-9 months
ago

FY2022
6-9 months ago

Less than 3months ago

3-6 months ago

9-12 months ago
3-6 months ago•

The application of revenue recognition standards has led to a change in business practices•

The period from order placement to product acceptance has become longer compared to before•

Due to the change in business practices, there was a trend towards earlier receipt of purchase orders, whichpeaked in 2023 but has now stabilized

H1
FY2024

6-9 months ago*Sales by distributors, small orders, support and maintenance are excluded*Net sales are not adjusted to the "Accounting Standard for Revenue Recognition“. Ratios above are calculated based on the total amount of acceptance
🄫2024 FINDEX Inc.

22

Backlog and Orders (Excluding Maintenance)

Appendix（¥ Millions）

2,000
1,894

Maintenance
30%

1,800

1,789

Sales
composition
ratio

1,600

1,429

1,400

1,346
1,263
1,197

1,200

1,122
1,071

1,059
958

1,000

908

917

933

1,159

1,114

1,157

969

979

962
909

846
799

800
690
637

872

863

834

829

1,129

1,041

728

688
617

613

600
352

400
271

200
0
Q1

Q2

Q3

Q4

Q1

FY20/12

Q2

Q3

Q4

Q1

FY21/12Q2Q3
FY22/12Backlog

Q4

Q1

Q2

Q3
FY23/12Q4Q1Q2FY24/12

Orders•Order backlog decreased by 21% YoY, settling at the usual level. On a QoQ basis, it turned to an increase.

•

There appears to be a delay in the decision-making process for investments in the medical software by the hospitals, due to the revision of medical fee and workstyle reformfor doctors led by the central government•

The trend of early ordering is expected to continue

🄫2024 FINDEX Inc.

23

Net Sales FY2011-2023

Appendix（¥ Millions）

6,500

5,500

5,192

4,969
4,541
4,500

4,282

4,005

3,603
3,500
2,864

3,288

3,312

2016

2017

2,952

2,383

2,500

1,988
1,543
1,500

500

-500
2011
Support🄫2024 FINDEX Inc.

2012

2013

2014

Outsourced R&D and Others

2015

EMC Healthcare

Fitting Cloud2018
Software

2019

2020
Hardware2021
Health Tech

2022

2023

Adjustment

24

Our Market ShareAppendix

An Overwhelming Market Share of

approx.

75%

in National University Hospitals

Market share in large hospitals with more than 400 beds ＝ approx. 40％

Other hospitals and clinics ▶ Over 1,500 facilities*Calculation changed as categorization of large hospitals revised from 500 or more beds to 400 or more beds following the revision of medical service fees in 2018
*Consumers of one-time products are excluded from 2021
*Reference: Ministry of Health, Labor and Welfare 2021 Survey of Medical Facilities (static and dynamic) and Summary of Hospital Reports（As of June 30, 2024）
🄫2024 FINDEX Inc.

25

Changes in the Number of Customers (As of June 30,2024)

Appendix（# of Facilities）

Medical Solutions – By Type of Medical Facility

Q1FY2023

Q2FY2024

QoQ

Large hospitals（400 beds and more）

293

294

+1

Medium sized hospitals（100～399 beds）

326

328

+2

Small hospitals（20～99 beds）

88

88

+0

1,250

1,286

+36

56

56

+0

2,013

2,052

＋39

Clinics（19 beds and less）

Other
Total

（# of Facilities）
Solutions for Public Sector – By Product

Q1FY2023

Q2FY2024

QoQ

Solutions for Public Sector

28

38

+10

Solutions for Medical Facilities

8

9

+1

36

47

＋11

Total

🄫2024 FINDEX Inc.

26

Value Creation Mapping

Appendix

Enriching Society with Technologies and Creation
Digitally Connecting Medical
Communities

Equal Access to Medical Services

Developing New Technologies for Healthy
Livings•

Driving digitalization in and outside medical facilities, offering solutions that revolutionize the business models in the healthcare sector•

Proficient in processing and handling a variety of patient data owned by large hospitals•

Providing consulting as software specialists and applying in-house technology to products for the public sector and medical devices

Community-Based
Integrated Healthcare

Cloud-based Medical Software

Connecting medical facilities and individuals
through cloud-based services

Consultation
Service
Elderly careHome care

Local
gov’tsDomestic

Cyber security
Building a platform for securely managing andexchanging data

Check-up
facilities

Pharmacy
Patient

Enhancement offunctions throughAI-generated
featuresUtilization ofcollaborative
data

Promotion of integrated regional care andcollaboration in regional healthcare

E-prescription

Implementation of cloud-based management analysis & information
linkage for medical data / provision of medical AI information technology

Hospital-Centric
Healthcare

Utilization of
medicaltreatment data
My Number
healthinsurance card

Hospital

Overseas

Claio

🄫2024 FINDEX Inc.

C-NoteREMORA

DocuMaker
OfficeExpansion of the document
management system in linewith national policies
Establishment andconsolidation of the stockbusiness

Utilization of in-houseowned visual field data

DocuMaker
GAP

Cloud-based/
On-premises
Medical Software

Expanding domestic
and overseas sales

RPA tool
DigiWorker

Gaze Analyzing Perimeter

On-premises Medical Software

Further expansion of flagship product sales

Public Document
Management System

Establishing a new
standard for visual
field testing

Implementation ofcontrast sensitivity
testing

GAP-screener

R&D and market
launch as a diagnostic
device for MCI

27

Trends and Topics in the Medical Software Industry 2024

Appendix「 Medical DX Reiwa Vision 2030 」

•

•

•

Establishment of a National Medical
Information Platform

Standardization of EMR Information(Promotion across all medical institutions)

Digitalization of Medical Treatment Fee
Amendment

Medical AI / Big Data

Cloud-Based Services

Telemedicine

Generally, all medical institutions and pharmacies areconnected to the Online Certification System for
Healthcare→Laying the Groundwork for Data Utilization
The implementation of the Next Generation Medical
Infrastructure Act will expand the collection andutilization of diverse real-world data
In addition to the Health Insurance Claims Data currently
being traded in the market, it will be possible to handle
more accurate medical data such as medical records inthe future•

Cloud-based operations with high security levels are
now possible without compromising the "three principles
of electronic storage“•

In small and medium-sized hospitals and clinics, the useof cloud-based products is expanding, while in large
hospitals, on-premises system operation is still common→The widespread adoption of cloud storage will likely
accelerate as its market prices decrease•

Utilizing the cloud for the Construction of a Regional
Collaboration Network•

The 2022 revision of medical fees has led to an increasein the insurance points for initial consultation fees to 87%
of in-person medical care, resulting in a rapid increase infacilities that have introduced telemedicine•

Meanwhile, there is a limited number of medical facilities
that offer telemedicine services, and large hospitals arehesitant to fully implement them
→The applications are limited, primarily in second opinion
outpatient settings• Emergence of teleoperated surgical robots

Advantages for hospitals and healthcare industry:

Advantages for hospitals and healthcare industry:

Advantages for hospitals and healthcare industry:•Support for diagnosis, treatment, and surgery

•

•

•

Applications for disease and nursing care prevention andreduction of medical costs

Efficient information sharing enables smart coordination
with other facilities••

Development of new markets via data accumulation

No need for extensive capital investment, server room
allocation, or regular system updatesExpanding the choice of medical facilities, improving
healthcare systems in remote areas and to address
medical service disparities•

The reduction of congestion and infection risk due to adrop in patient visits

Electronic Prescriptions

Myna Insurance Card••

The Japanese gov’t targets all hospitals and pharmacies•

The Japanese gov’t plans to phase out health insurance

Better Working Environments•

Starting next April, overtime work for employed

to implement e-Prescriptions by the end of 2024 (As ofcards in fall 2024 and integrate them into the national My

physicians will be limited to no more than 960 hours per

March 2024, the adoption rate is approx. 20%)

Number identification system

year

Medical facilities need to install Online Certification•→Proper management of working hours is necessary

80% of the hospitals and pharmacies in Japan had

System for Healthcare and issue HPKI cards prior to thealready started the new operation utilizing Online

utilization of e-Prescriptions

Certification System for Healthcare•

Digitalization has also been accelerated for improvementof efficiency in medical practices

Advantages for hospitals and healthcare industry:

Advantages for hospitals and healthcare industry:

Advantages for hospitals and healthcare industry:••

Enhanced healthcare through centralized medical history•

Improvement in long working hours of physiciansmanagement•

Sales opportunities for attendance management•

Optimization of dispensing and counseling tasks
Prevention of duplicated prescriptions by centralizing
management of prescribing information••

Reduction of administrative costs

solutionsContribution to telemedicine and home care services

🄫2024 FINDEX Inc.

Domestic Market Size of Medical Software : approx. 500 billion yen*
* excerpted from NIKKEI COMPASS October 3, 2023

28

Medical Business - Our Flagship Solutions

On-Premise Solution

Appendix

Cloud Solution

Hospitals

Clinics
Medical Big Data Search System

Integrated Browsing System

UniversalSearcher

ClaioDashboard

PDI Import / Export
Solution

PDI+MoveBy

Network Imaging System

Claio

Progress Note System

C-NoteHIS(Hospital Information System)

Management Solution

C-ScanConnectFAX

Progress Note System

C-NoteMedical Information
Remote Sharing
Application

Perinatal Information
SystemMedical Document

Electronic Medical

Management System

RecordDocuMaker

REMORA

Remotalk-Cloud

MapleNote

Radiological Information

FAX Reference

Document Integrated
Archiving System

System

ProRad RIS

Patients

Data Management Software

ClaioRadiological Reporting

Patient

SystemInformation Application

ProRad RS

Medical Avenue

同意診断書Medical
書
Docum
ents

Care
Facilities

Telemedicine System forLarge Hospitals

Electronic Medical Record

On-shinPharmacies
RPA Tool forDocument Management

RPA Tool for

Medical Facilities

SystemMedical Facilities

DigiWorker

DocuMaker Office

DocuMaker

Electric Tracing
Report Service

Local
Governments

AAdE-Report

Medical Community
29
🄫2024 FINDEX Inc.

Financial Indicators

Appendix
ROIC and Equity Ratio

ROE and DuPon Analysis
35%

140%
35%

95%

30%

90%

25%

85%

20%

80%

15%

75%

130%
30%
120%
25%

110%
100%

20%

90%
15%
80%
10%

70%
FY14

FY15

ROE

FY16

FY17

FY18

Net profit margin

FY19

FY20

FY21

Total asset turnove(RHS)

FY22

70%
FY14

FY15

FY16

FY17
ROIC

Financial leverage(RHS)

FY18

FY19

FY20

FY21

FY22

FY23

Equity ratio (RHS)

Marginal profit Ratio

Cash Flow（¥ Millions）

10%

FY23

100%

3,000

90%

2,500

80%

1,400
1,200
1,000

70%
2,000

60%

1,500

50%

1,000

40%

800
600

30%

500

400

20%
0

200

10%

(500)

0%

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2(1,000)
FY14

FY15

FY16

Operating C/F

🄫2024 FINDEX Inc.

FY17

FY18

FY19

Investment C/F

FY20

FY21

Free C/F

FY22

Cash

FY23

FY20/12

FY21/12

Marginal profit ratio

FY22/12
Variable cost ratio

FY23/12

FY24/12

Break-even sales

30

Shareholders Information

Appendix

Number of shares and shareholders

Principal shareholders

Total number of authorized shares

78,336,000

Total number of issued shares

26,608,800

Number of shareholders

4,331

Breakdown of shares by type of shareholder
Type# of shares

Name# of shares% of total
shares inissue

Teruo Aibara

7,707,600

29.9

The Master Trust Bank of Japan, Ltd. (Trust Account)

3,366,100

13.0

# of
shareho-lders% of total
shares in
issue

Mizuho Trust & Banking Co., Ltd. Securities Custody
Trust 0700068

1,440,000

5.6

Mizuho Trust & Banking Co., Ltd. Securities Custody
Trust 0700067

1,440,000

5.6

CACEIS BANK/QUINTET LUXEMBOURG
SUB AC / UCITS CUSTOMERS ACCOUNT(Standing proxy: The Hongkong & Shanghai Banking
Corporation Limited, Tokyo Branch)

1,021,600

4.0

Ehime Bank, Ltd.

967,200

3.7

Japanese financial
institutions

8,199,300

13

30.8

Japanese securities
companies

827,40926

3.1

Other Japanesecompanies

321,00127

1.2

Foreign investors

2,722,511

77

10.2

Japanese individuals,
others (Including
treasury shares)

14,538,579

4,188

54.6

Keiji Takemura

830,100

3.2

Total

26,608,800

4,331

100.0

THE BANK OF NEW YORK MELLON
140040(Standing proxy: Settlement Sales Division, Mizuho
Bank, Ltd.)743,546

2.9

Custody Bank of Japan, Ltd. (Trust Account)713,700

2.8

SCBHK AC LIECHTENSTEINISCHELANDESBANK AG(Standing proxy: MUFG Bank, Ltd.)

275,000

1.1

金融機関
証券会社

30.8
その他の国内法人

54.6
外国法人等

10.2
個人・その他🄫2024 FINDEX Inc.

3.1
1.2

(As of June 30, 2024 ）31

Progressive Software Creators
Always have, Always will.

🄫2024 FINDEX Inc.