Notice: This document has been translated from Japanese original for reference purpose only, without any warranty as to its
accuracy or as to the completeness of the information. The Japanese original version is the sole official version.
August 9, 2024

Consolidated Financial Results
for the Six Months Ended December 31, 2024
(Under Japanese GAAP)
Company name: EM SYSTEMS CO., LTD
Listing:
Tokyo Stock Exchange
Securities code: 4820
URL:
https://emsystems.co.jp
Representative: Hiromasa Kunimitsu, President&Representative Director
Inquiries:
Daigo Kobayashi, Senior Executive Officer, Chief of Business Strategy Headquarters
Telephone:+81(0)6-6397-1888
Scheduled date to file semi-annual securities report:
August 9, 2024
Scheduled date to commence dividend payments:
September 4, 2024
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
Yes (for Analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated results of December 2024 2nd Quarter Financial Statement (January 1st, 2024 to June 30th, 2024)(1) Consolidated management performance (total) (% refers to rate of change over the same quarter in the previous year)
Sales

December 2024
2nd quarter
December 2023
2nd quarter(Note) Comprehensive income

Operating profits

Millionsof yen10,98911.9Millionsof yen
1,221

9,818

20.3

December
2024 2nd
Quarter

1,051

Ordinary profits

6.7

Millionsof yen
1,540

10.5

1,144

(15.9)

1,394(13.0)

Millions of
yen

20.4%

December
2023 2nd
Quarter

%

%

%

873

789
Millions ofyen(27.6)(23.0%)

Quarterly net income per share after
potential stock adjustment
Yen 100ths of a yen
13.96
11.13

Quarterly net income per share
Yen 100ths of a yen
14.00
11.17

December 2024 2nd quarter
December 2023 2nd quarter

Quarterly net income
belonging to parent
company shareholders
Millions of
%
yen
24.9
985

(2) Consolidated financial position

December 2024 2nd quarter
December 2023
(Refer to) Net
capitalDecember
2024 2nd
Quarter

Total assets

Net assets

Millions of yen
29,282
29,387

Millions of yen
20,404
20,566

20,324

Millions ofyen

2. State of dividends
End of 1st quarter
Yen 100ths of a yen

End of 2nd quarter
Yen 100ths of a yen

Capital adequacy
ratio

Net assets per share

%
69.4
69.6

Yen 100ths of a yen

December
2023 period

20,464

Annual dividends
End of 3rd quarter
Yen 100ths of a yen

December 2023–
7.00
December 2024–
9.00
December 2024
(estimate)(Note)1. Revisions from the last published dividend estimates: None1–289.93289.47
Millions ofyen

End of term
Yen 100ths of a
yen
7.00

Total
Yen 100ths of a
yen
14.00

7.00

16.00

3. Estimated consolidated results of December 2024 period (January 1st, 2024 through December 31st, 2024)(% refers to rate of change over the previous term)
Net sales
Millionsof yenFull year

22,014％

Operating profit
Millionsof yen

8.1

2,573

％
10.4

Ordinary profit
Millionsof yen3,199％

Profit attributable toowners of parent
Millions％of yen

11.5

2,160

Net income
per share
Yen 100thsof a yen

10.1(Note) 1. Revisions from the last published forecast of financial results: None
* Addendums(1) Changes in major subsidiaries during cumulative quarterly consolidated period (changes in designated subsidiaries accompanied by changes within the scope of consolidation): None
(2) Application of special accounts processing in the creation of the quarterly consolidated financial statement: Yes(Note) For details, please see the attached document P11 "2. Quarterly consolidated financial statement and major explanatory notes (3) Addendums relating to quarterly consolidated financial statement (application of special accounts processing in
the creation of the quarterly consolidated financial statement)".
(3) Changes to accounting policy, changes to estimates in accounting, revised restatements
1. Changes to accounting policies accompanying revision to accounting standards, etc. : None
2. Changes to accounting policies other than 1.

: None3. Changes to estimates in accounting: None4. Revised restatement: None(4) Number of shares outstanding (ordinary stock)
1. Number of shares outstanding at endof term (including own stock)
2. Number of own shares at end of term
3. Average number of shares outstanding
during term (quarterly total)

December 2024
2nd quarter
December 2024
2nd quarter
December 2024
2nd quarter

74,514,800 shares
4,414,494 shares
70,405,644 shares

December 2023
periodDecember 2023
periodDecember 2023
2nd quarter

74,514,800 shares
3,818,649 shares
70,665,301 shares* The quarter financial statement is not subject to quarterly review by certified public accountants or auditors.
* The descriptions of the future such as estimated results contained in this document are based on information possessed bythis company at the present time and certain assumptions this company deems reasonable, and they may differ greatly toactual results due to a variety of factors.

2

30.56

○ Table of contents of attached materials

1. QUALITATIVE INFORMATION RELATING TO THIS QUARTER'S FINANCIAL RESULTS ----------------------------------------- 4(1) Explanation regarding operating results ------------------------------------------------------------------------------------------------------------ 4(2) Explanation regarding financial position ----------------------------------------------------------------------------------------------------------- 5(3) Explanation regarding information on future prospects such as forecast of consolidated financial results -------------------- 6
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND MAJOR EXPLANATORY NOTES ---------------------------- 7(1) Quarterly consolidated balance sheet ---------------------------------------------------------------------------------------------------------------- 7(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income ------------ 9(3) Addendums relating to quarterly consolidated financial statement ----------------------------------------------------------------------- 10(Explanatory notes regarding prerequisites of going concern) ------------------------------------------------------------------------------- 10(Explanatory notes for cases of considerable changes in amounts of shareholder's equity) ----------------------------------------- 10(Application of special accounts processing in the creation of the quarterly consolidated financial statement) -------------- 11(Accounting policy revisions) ---------------------------------------------------------------------------------------------------------------------------- 113

1. Qualitative information relating to this quarter's financial results(1) Explanation regarding operating results
Prolonged restrictive fiscal policies primarily in the U.S. and Europe have impacted the Japanese economy
during this interim consolidated accounting period, and the outlook of economic trends, such as soaring energy
and raw material prices due to depreciation of the yen in the foreign exchange market, remains uncertain.
In In the medical industry, the Group’s main customer base, both medical and long-term care/welfare
services are scheduled to undergo revisions in the 2024 fiscal year (which only occurs simultaneously once every
six years). The timing at which revisions to the various fees are to take effect have been dispersed throughout
the year, and changes to the number of fee points and their method of calculation are increasing in frequency.
In addition, medical fees are to be raised under the revisions as a means of securing human resources andraising wages among medical and long-term care/welfare practitioners, while at the same time aiming to
improve the stability and sustainability of the medical insurance system through greater efficiency andoptimization by promoting digital transformation in the medical field.
In order to achieve high quality medical care via the promotion of digital transformation in the medical fieldalong with other innovations, the Group has also continued to incorporate the online eligibility verification system,as the scope of coverage of the online eligibility verification system is expected to expand and electronicprescriptions are expected to become more commonplace. The Group is also providing medical assistance services,a new operational target, as well as gradually increasing the number of customers incorporating electronicprescriptions, and the number of installations in the current consolidated accounting period exceeded
expectations.
In each segment of the Group’s business, sales activities are steadily and more efficiently leading to thecreation of new projects due to the high percentage of sales switching from conventional face-to-face sales to
inside sales through last year’s reorganization. In addition, the Group also continues to acquire potential
projects through website renewals, the utilization of MA tools, and the application of digital marketing,including videos and enhanced content on examples of incorporation.
On the other hand, although sales and operating profits increased year-on-year due to turning both Good Cycle
System Inc. and UNIKE SOFTWARE RESEARCH CO., LTD, into consolidated subsidiaries during the previous
fiscal year, in regard to this interim consolidated accounting period for the Group, in addition to the end of
intensive demand for the online eligibility verification system, which we have been incorporating since April
2021, there was a drop in comparison to the revised forecast for the interim consolidated results due to theaddition of post-incident response expenses from the “leap day” system failure within our IT systems forpharmacies and from system failures in our IT systems for clinics.

As a result, our business results for this 2nd quarter consolidated cumulative period was 10,989 million yen insales (a 11.9% increase compared to the same period in the previous year), 1,221 million yen in operating profits(a 6.7% increase) 1,540 million yen in ordinary profits (a 10.5% increase), and 985 million yen in this quarterly
net income belonging to parent company shareholders (a 24.9% increase).
By segment results are as follows.
(IT Systems for Pharmacies)
In regard to IT systems for pharmacies, despite the end of intensive demand for the online eligibility
verification system, medical assistance expanded and the number of customers incorporating electronicprescriptions increased. Good Cycle System Inc. and UNIKE SOFTWARE RESEARCH CO., LTD were subject
to consolidation, increasing sales and operating profits within the segment, along with billing sales increasing
due to an increase in the number of customers.
Consequently, IT systems for Pharmacies for this 2nd quarter consolidated cumulative period resulted in
9,013 million yen in sales (a 17.3% increase compared with the same period in the previous year) and 1,684
million yen in operating profits (a 19.8% increase).

4

(IT Systems for Clinics)
In regard to IT systems for clinics, in addition to organizational restructuring, we are also taking a wide range
of approaches utilizing digital marketing. Expanded sales of “MAPs for CLINIC” have led to steady growth inbilling sales within the segment. On the other hand, operating losses increased due to the end of intensive
demand for the online eligibility verification system as well as to the addition of post-incident response expenses
from system failures.
Consequently, IT systems for clinics for this 2nd quarter consolidated cumulative period resulted in 1,198
million yen in sales (a 21.6% decrease compared to the same period in the previous year) and 306 million yen in
operating losses (previous period: 7 million yen in operating losses ).
(IT Systems for Long-term Care/Welfare)In regard to IT systems for long-term care/welfare, while replacements for existing products caused a drop in
maintenance sales, billing sales have remained steady due to an increase in the number of “MAPs for
NURSING CARE” licenses. In addition, operating losses narrowed slightly due to mitigating the burden of
fixed costs in the segment.
Consequently, IT systems for Long-term Care/Welfare for this 2nd quarter consolidated cumulative period
resulted in 283 million yen in sales (a 1.8% increase compared with the same period in the previous year) and
229 million yen in operating losses (previous period: 285 million yen in operating losses)(Other businesses)
In other businesses, sales increased due to the expansion of our cashless business via ChoQi Co., Ltd. as wellas to contributions from our temporary staffing business via UNIKE SOFTWARE RESEARCH CO., LTD. This
led to an improvement in the overall profitability of the segment, which in turn also increased operating profits.
Consequently, other business for this 2nd quarter consolidated cumulative period resulted in 572 million yen
in sales (a 48.3% increase compared to the same period in the previous year) and 40 million yen in operating
profits (previous period: 5 million yen in operating profits ).
（Segmented sales and operating profits and losses are the amounts before elimination of internal transactions
between segments.）(2) Explanation regarding financial position(Assets)
Current assets at the end of this interim consolidated accounting period were 15,214 million yen, an increaseof 414 million yen from the end of the previous consolidated fiscal year. This was mainly due to a 48 million
yen increase in cash on hand and in banks, and a 320 million yen increase in notes and accounts receivable.
Fixed assets were 14,067 million yen, a decrease of 519 million yen from the end of the previous consolidated
fiscal year. This was mainly due to a decrease of 294 million yen in software accompanying amortization, 112
billion yen in goodwill resulting and 98 million yen in investment real estate.
As a result, total assets were 29,282 million yen, an increase of 104 million yen from the end of the previous
consolidated fiscal year.
(Liabilities)
Current liabilities at the end of this interim consolidated accounting period were 6,247 million yen, an
increase of 629 million yen from the end of the previous consolidated fiscal year. This was mainly due to anincrease of 181 million yen in accounts payable, a 329 million yen increase in income taxes payable, and a 133
million yen increase in other liabilities, despite a 109 million yen decrease in the current portion of long-termloans payable. Fixed liabilities were 2,630 million yen, a decrease of 572 million yen from the end of theprevious consolidated fiscal year. This was mainly due to a 541 million yen decrease in long-term loans
payable.
As a result, total liabilities were 8,878 million yen, an increase of 57 million yen from the end of the previous
consolidated fiscal year.
(Net assets)
Net assets at the end of this interim consolidated accounting period came to 20,404 million yen, a decrease of5161 million yen from the end of the previous consolidated fiscal year. This was mainly due to a 491 million yen
increase in retained earnings and a 407 million yen decrease in treasury stock.
As a result, equity ratio was 69.4% (69.6% at the end of the previous consolidated fiscal year).
(3) Explanation regarding information on future prospects such as forecast of consolidated financial results
The forecast of consolidated financial results for the full year ending December 2024 has not changed to the fullyear consolidated financial results forecast announced in [Summary of Consolidated Financial Results for the Fiscal
Year Ended December 2023] on February 14, 2024.

6

2. Quarterly consolidated financial statements and major explanatory notes(1) Quarterly consolidated balance sheet(Units: millions of yen)Previous consolidated
fiscal year
(December 31st, 2023)
AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise and products
OthersAllowance for bad debts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures (net)Land
Lease assets (net)Others (net)Total tangible fixed assets
Intangible fixed assets
Software
Software in progress
Goodwill
OthersTotal intangible fixed assets
Investments and other assets
Investment securities
Investment real estate (net)OthersAllowance for bad debts
Total investments and other assets
Total fixed assets
Total assets

7This 2nd quarter consolidated fiscal period(June 30th, 2024)

9,441
3,082
1,136
1,139
(0)
14,800

9,490
3,403
1,123
1,200
(1)
15,214

575
474
65
214
1,330

574
474
48
338
1,436

2,296
164
1,475
1,250
5,186

2,001
202
1,362
1,215
4,782

962
6,393
725
(11)
8,070
14,587
29,387

928
6,294
637
(12)
7,848
14,06729,282

(Units: millions of yen)Previous consolidated
fiscal year
(December 31st, 2023)
Liabilities
Current liabilities
Notes and accounts payable
Accounts payable-other
Current portion of long-term loans payable
Lease obligations
Income taxes payable, etc.
Provision for bonuses
Contract liability
OthersTotal current liabilities
Fixed liabilities
Long-term loans payable
Lease obligations
Net defined benefit liability
Provision for product warranties
Long-term accounts payable
Long-term guarantee deposits
OthersTotal fixed liabilities
Total liabilities
Net assets
Shareholder's equity
Capital stock
Capital surplus balance

Retained earnings
Treasury stock
Total shareholder's equity
Cumulative amount of other comprehensive income
valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total other cumulative comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

8This 2nd quarter consolidated fiscal period(June 30th, 2024)

1,121
997
966
36
241
348
877
1,028
5,618

1,074
1,179
857
37
570
429
936
1,162
6,247

1,527
37
135
3
396
763
339
3,202
8,821

986
3
123
2
396
789
329
2,630
8,878

2,785
3,376
16,101(1,990)20,272

2,785
3,104
16,592(2,397)20,083

85
106
191
56
45
20,566
29,387

60
179
240
55
24
20,40429,282

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(2nd quarter consolidated cumulative period)(Units: millions of yen)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profits
Non-operating profits
Interest income
Real estate rental income
OthersTotal non-operating profits
Non-operating expenses
Interest expense
Real estate rental expenses
Equity Losses of Affiliated Companies
OthersTotal non-operating expenses
Ordinary profits
Special losses
Loss on step acquisitions
Losses on disposal of fixed assets
Total special losses
Quarterly net income before adjustment for taxes, etc.
Corporation tax, etc.
Quarterly net income
Loss attributable to non-controlling interests
Profit attributable to owners of parent

Previous 2nd quarter consolidated cumulative period(From January 1st, 2023
To June 30th, 2023)
9,818
4,960
4,858
3,713
1,144

This 2nd quarter consolidated
cumulative period(From January 1st, 2024
To June 30th, 2024)
10,989
5,427
5,561
4,340
1,221

3
484
14
502

6
527
20
553

4
210
35
3
253
1,394

5
196
31
233
1,540

140
9
150
1,244
459
784
(4)
789

47
47
1,492
489
1,003
17
985

(Quarterly consolidated statements of comprehensive income)(2nd quarter consolidated cumulative period)(Units: millions of yen)

Quarterly net income
Other comprehensive income
valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income
concerning parent company
shareholders
Quarterly comprehensive
income concerning noncontrolling shareholders

Previous 2nd quarter consolidated cumulative period(From January 1st, 2023
To June 30th, 2023)
784

This 2nd quarter consolidated
cumulative period(From January 1st, 2024
To June 30th, 2024)
1,003

62
23
3
88
873

(24)
73
48
1,051

878

1,034

(4)

17

9

(3) Addendums relating to quarterly consolidated financial statement(Explanatory notes regarding prerequisites of going concern)
There is no applicable information.
(Explanatory notes for cases of considerable changes in amounts of shareholder's equity)
There is no applicable information.

1. Information related to net sales, profit/loss, assets, liabilities and other items for each reportable segment
Previous fiscal year (From January 1st, 2023 to June 30th, 2023)(Units: millions of yen)Amounts

Reportable segment
IT Systems forrecorded in

Adjustment

consolidated

IT Systems
forPharmacies

IT Systems
for Clinics

initial sales

4,077

995

20

－

5,093

－

5,093

system usage fee sales

2,323

412

112

－

2,849

－

2,849

consumable goods sales

885

28

－

－

914

－

914

maintenance service sales

386

92

145

－

624

－

624

other businesses

－

－

－

337

337

－

337

7,672

1,529

278

337

9,818

－

9,818

7,672

1,529

278

337

9,818

－

9,818

9

－

－

48

58

(58)

－

Total

7,681

1,529

278

386

9,876

(58)

9,818

Segment profit or segment loss(Note2)

1,405

(7)

(285)

5

1,117

27

1,144

Long-termcare/welfare

Other
Businesses(Note1)

Total

financialstatements

Net sales

Revenue from contracts withcustomers
External sales
Inter-segment sales and transfers

Note
1. Adjustments to segment income (loss) mainly include elimination of intersegment transactions.
2. Segment profit is adjusted to be consistent with operating profit recorded in the consolidated financial
statements.
2. Information on Impairment Loss on Fixed Assets and Goodwill by Reportable Segment（Significant impairment losses on fixed）
There is no applicable information.
（Significant changes in the amount of goodwill）
In the "IT Systems for Pharmacies" segment, the Company acquired additional shares of Good Cycle System Inc.
As a result, goodwill of 532 million yen was recognized in the current interim consolidated accounting period.
In addition, goodwill of 1,733 million yen was recognized during the period due to the acquisition of shares of
UNIKE SOFTWARE RESEARCH CO., LTD. and its management purpose company, Launchpad13 Inc.
The goodwill amount of 1,733 million yen is a tentatively calculated amount because the allocation of theacquisition cost has not been completed at the end of the current interim consolidated accounting period.
（Significant gain on negative goodwill）
There is no applicable information.

10

Information on amount of sales and profit and loss by reportable segment and breakdown of income
Current fiscal year (From January 1st, 2024 to June 30th, 2024)(Units: millions of yen)

Reportable segment

Amounts
recorded in

IT Systems for

Adjustment

consolidated

IT Systems
forPharmacies

IT Systems
for Clinics

initial sales

4,065

664

37

－

4,766

－

4,766

system usage fee sales

3,429

443

124

－

3,997

－

3,997

consumable goods sales

1,033

25

0

－

1,058

－

1,058

maintenance service sales

476

65

121

－

664

－

664

other businesses

－

－

－

502

502

－

502

9,004

1,198

283

502

10,989－10,989

9,004

1,198

283

502

10,989－10,989

9

－

－

70

79

(79)

－

9,013

1,198

283

572

11,069(79)

10,989

1,684

(306)

(229)

40

1,188

32

1,221

Long-termcare/welfare

Other
Businesses(Note1)

Total

financialstatements

Net sales

Revenue from contracts withcustomers
External sales
Inter-segment sales and transfers
Total
Segment profit or loss(Note2)

Note
1. Adjustment of segment income (loss) is mainly due to elimination of intersegment transactions, etc.
2. Segment profit is adjusted to be consistent with operating profit recorded in the consolidated financial
statements.
２．Information on Impairment Loss on Fixed Assets and Goodwill by Reportable Segment（Significant impairment losses on fixed assets）
There is no applicable information.
（Significant changes in the amount of goodwill）
There is no applicable information.
（Significant gain on negative goodwill）
There is no applicable information.
(Application of special accounts processing in the creation of the quarterly consolidated financial statement)(Calculation of tax expense)
We have calculated tax expenses by multiplying quarterly net income before taxes and effective tax rate thatwere reasonably estimated, following application of tax effect accounting for the income before taxes of theconsolidated accounting period including this 2nd, quarter consolidated cumulative period.
(Accounting policy revisions)
There is no applicable information.

11

This financial report is solely a translation of the Company’s Kessan Tanshin (including attachments) in Japanese, which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

12