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ＥＭＭＡResults of Operations forDecember 2021,1st Half

EM SYSTEMS CO., LTD.
(TSE 1st Section: 4820)ＥＭ ＳＹＳＴＥＭＳ ＣＯ ．，ＬＴＤ．
These documents have been translated from Japanese originals for reference Purposes only.
In the event of any discrepancy between these translated documents and the Japanese originals, the originals shall prevail. The Company assumes
no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translations.

ContentsI.

“Business Environment / Company Initiatives ”
i.
Business Environment
ii. Company Initiatives

II. “Results of Operations for December 2021, 1st Half”
i.
Highlights of Financial results
ii. Changes in consolidate results by fiscal yeariii. Balance Sheet Summary
iv. By Segment Sales/Operating Profitsv. By Segment Sales Breakdown
vi. IT Systems for Pharmacies（Quarterly Sales /Moving Annual Total）
vii. IT Systems for Clinics（Quarterly Sales /Moving Annual Total ）viii. IT Systems for Long-term care（Quarterly Sales /Moving Annual Total ）ix. Forecast for the fiscal year ending December 2021
x. Market Share and Number of Customers
xi. Shareholder returns

Supporting DateShared Information System Foundation

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2Introduction

Notice regarding conformity with the new market
category of “Prime Market”
We are pleased to announce that, on July 9, 2021, the Company received its "Primary Judgment
Results Regarding Compliance with Listing Maintenance Criteria in a New Market Category" from Tokyo
Stock Exchange, Inc. (hereinafter referred to as "the TSE"), confirming that it meets the listing
maintenance criteria for the new "Prime Market" category.
The procedure for selecting the new market category is decided upon careful review by the Board ofDirectors, and an application will be submitted according to the schedule set by the TSE.

「July 13, 2021 Public document」

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3

Company Initiatives regarding the Novel Coronavirus
We would like to express our heartfelt sympathies to all of you who are dealing first-hand with novel
coronavirus infections (Covid-19). We pray that the pandemic comes to an end as soon as possible andwe pray for your health.
Our company, which continues to support the healthcare (clinics and pharmacies) and long-termcare/welfare industries through our systems, is implementing the following initiatives throughout theentire EM Systems Group in order to minimize the effects on the health and safety of our customers andemployees, as well as on our business, and to continuously provide the stable system access and service.

Working Environments

Utilization of staggered working hours, telecommuting, online meetings and mobile working, as
well as creation of office environments that avoid the three Cs.
Installation of sneeze guards at all seats, mask wearing, and thorough disinfection practices, etc.
Implementation of work style reforms that enable employees to work without coming to the office.

Sale Activities

Sales activities via the Internet and telephones.

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4

Ⅰ. ⅰ. Market environment

Clinics■ Responses to the Post-Covid-19 Status(Promotion of online medical care, medical
consultations by appointment, transition towardcashless systems, etc.)■ Hybridization of exhibitions by academia
and private companies, and transition
toward holding such exhibitions online■ Standardization of electronic medicalrecords at medical institutions(with the goal of information sharing as government)■ Transition toward electronic prescriptions,and construction of information viewing
environments at medical institutions whereIndividual Number Cards are used asinsurance certificates(Individual unitization of insurance information, andimprovement of patient convenience)
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Initiatives● Transition toward cloud-based

systems, and provision of cashless services
through our subsidiary ChoQi Co., Ltd.

● Application of online demonstrations andonline business negotiation tools, and nonface-to-face sales, Exhibition at hybrid expo● Participation in the government-promoted
electronic medical record standardization
verification project5● Provision of online qualification confirmationsystem(compatible with subsidy system/full operation in October.)● Enhanced medical system proposal

capabilities

5Ⅰ. ⅰ. Market environment

Pharmacies■ Responses to the Post-Covid-19 Status

Initiatives● Provision of head office systems capable(Optimization of operations within pharmacies,
promotion of online medication guidance, deliveryof medications, etc.)

of coordinating with the systems of othercompanies■ Reorganization, and strong performance● Provision of head office systems capablein M&A drugstore industry

of coordinating with the systems of othercompanies■ Hybridization of exhibitions and transition● Application of online demonstrations

toward holding such exhibitions online■ Transition toward electronic prescriptions,and construction of information viewing
environments at medical institutions where
Individual Number Cards are used asinsurance certificates(Individual unitization of insurance information, andimprovement of patient convenience)

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and online business negotiation tools, andnon-face-to-face sales● Provision of online qualification

confirmation system(compatible with subsidy system/Full operation in October.)● Enhanced electronic medical history

proposal capabilities

6Ⅰ. ⅰ. Market environmentLong-term care/welfare■ Increase in the number of new facilities
accompanying the aging of society, andincrease in the number of large-scale chain
long-term care facilities■ Responses to the Post-Covid-19 Status(Provision of non-contact services, limitations on
facility usage, strengthening infection
countermeasures, etc.)■ Increase in the demand for digitizationof long-term care records, and promotion ofinformation utilizations■ Revision of long-term care fees

April,2021

Initiatives● Development of MAPs for NURSING

CARE, and establishment of a specializedorganization to operate chain store sales● Application of online demonstrations

and online business negotiation tools
and online exhibitions, non-face-to-facesales● Proposals to promote systemization,and examination of medical and longterm care information sharing■ Promotion of scientific long-term care by
LIFE（Long-term care Information systemFor Evidence）

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7Ⅰ. ⅱ. Company Initiatives

Marketing Activities ,Sale Activities
contents〇

Strengthening Web Marketing:Implementation of SEO and SEM measures,
Application of YouTube channel, Raise awareness

〇

〇

〇

〇

Application of electronic contracts, and estimates and configuration examinations conducted
personally by customers through “MAPs DIRECT,” an e-commerce site〇〇

Promotion of non-face-to-face sales focusing existing customers〇〇

Released "MAPs for CLINIC with ORCA" linked with JMA standard receipt software ORCA〇

〇 Expansion of sales channels such as OEM and agency businesses〇

Business partnership with Good Cycle System Co., Ltd, Marketing, Online seminars,Linkage with medication history〇BI tool "MAPs option BunseQI" to be released〇Commencement of handling of MAPs for PHARMACY by YUYAMA Co., Ltd.
Regional comprehensive care and collaboration between hospitals and pharmacies →Realization ofcollaboration between hospitals and pharmacies through cooperation with CSI Co., Ltd〇〇〇〇〇〇 Application of M&A

Clinic:Clinic Segment Pharmacy :Pharmacy Segment Long-term care :Long-term care/Welfare
8 8
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SegmentⅠ. ⅱ. Company Initiatives

Development activities
EM Technology Laboratory Co., Ltd（Common name: EMTLab.)●System development subsidiary funded entirely by EM Systems; Established in July 2020・Consolidates state-of-the-art technologies and environments where cutting-edge
innovations are made・Creates globally-adaptable development professionals
・Secures promising human resources by being a company that is attractive to developers
・Clarifies and optimizes profitability as a development organization
 Strengthening product competitiveness through expanding the functions of the alreadyreleased MAPs for CLINIC and MAPs for PHARMACY Development of MAPs for NURSING CARE, a long-term care/welfare system, andpreparations for release Contribution to standardizing the industry and reducing costs through the OEM provisionof a shared engine: Expansion to other companies in the same field Joined by developers of subsidiary Cosmo systems Co., Ltd in April 2021
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9

Ⅰ. ⅱ. Company Initiatives

Social contribution activities
 Sponsor participation in the KIMIKO DATEx YONEX PROJECT

 Ai Love All Tennis Academy
Participation as a professional tennis player sponsor

 Commencement of engagement in SDGs

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10

Ⅰ. ⅱ. Company Initiatives

Social contribution activities
 Donations to course for the development of health care AI (Course head: Specially-appointed AssistantProfessor Yoshimasa Kawazoe M.D., Ph.D.)
We agree with the purpose of the Artificial Intelligence in Healthcare course at the University of Tokyo, aimed at developing abase for new medical services focused on AI and ICT, and we have been supporting the course’s activities through continuousdonations since 2017.

 Participation in examination of next-generation electronic medical record base (Representative: ProfessorKazuhiko Ohe, M.D., Ph.D. at the University of Tokyo)
We participate in NeXEHRS Consortium, established with the goal of constructing a next-generation electronic medical record
sharing platform.

 Cooperation in a project by the Ministry of Health, Labour and Welfare (Researcher: Professor KazuhikoOhe, M.D., Ph.D. at the University of Tokyo)
We cooperate in examinations of “research and development of standards to ensure interoperability between medical
information provision forms, electronic prescriptions and other electronic medical documents,” a research project by theMinistry of Health, Labour and Welfare, and we participate in verification tests of uploading electronic prescriptions generated
according to HL7 FHIR standards into pharmacy receipt computers.

 Support for polypharmacy measures (Representative: Professor Hirohisa Imai Ph.D. at the University ofTokyo)
We agree with the purpose of the polypharmacy measures promoted by the Society for the Promotion of Proper Drug Usage,and we support its activities as a special member.
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11

Ⅱ. ⅰ. Financial Highlights for December 31 2021, 1st Half
consolidated results of December 31 2021, 1st Half

Topics for December 31 2021, 1st Half
□ Higher “MAPs for PHARMACY” maintenance costs for improved quality□ Manufacturing costs increased due to investment in new system development personnel to handle the unexpected
revision of the long-term care act□ SG&A expenses decreased compared to plan due to prolonged teleworking to prevent the spread of COVID-19□ Ordinary income increased due to payment of dividends from accumulated income as a result of changes in thebusiness content of our deconsolidated wholly owned subsidiary

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12

Ⅱ. ⅱ. Changes in consolidate results by fiscal year
Flow-Based

Fully Stock-Based

Partially Stock-Based(Millions of yen)
Sales
7,315

9,573

11,395

11,288

8,776

9,818

8,202

9,013

10,257

11,36911,257

13,19913,676

13,953

13,133

14,023

9,660

13,9742005.32006.32007.32008.32009.32010.32011.32012.32013.32014.32015.32016.32017.32018.32019.32020.3 2020.12 2021.12

Operating ProfitsThe 2020 fiscal year was a 9-month accounting period due tochange in the fiscal year end(Millions of yen)

455

1,317

1,740

1,010

-1,317

-721

86

835

1,209

1,672

1,232

1,861

2,597

3,063

2,622

1,583

2005.32006.32007.32008.32009.32010.32011.32012.32013.32014.32015.32016.32017.32018.32019.32020.3 2020.12 2021.12

Profit Margin
ratio

19.0%

2005.32006.32007.32008.32009.32010.32011.32012.32013.32014.3

20.0%
11.3%

2015.32016.32017.3

1,508

22.0%

14.7%

15.3%

1,037

2018.32019.3

10.7%10.8%

2020.3 2020.12 2021.12-15.0%

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13

Ⅱ. ⅲ. Balance Sheet Summary （Units: Millions of yen）

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14

Ⅱ. ⅳ. By Segment Sales/Operating Profits※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.
※We have changed the fiscal year ended from March 31 to December 31 starting from the 2020 fiscal year.

IT Systems for Pharmacies･･･Increase in initial sales and billing sales as a result of an increase in the number of existing systemsales.
Decrease in capitalized for "MAPs for PHARMACY "and higher maintenance costs.
IT Systems for Clinics････････Increase in sales as a result of an increase in the number of existing system sales, and a steadyincrease in billing sales.
No longer capitalized for "MAPs for CLINIC", and higher maintenance costs.
IT Systems for long-term care/welfare･･････ In addition to the initial introduction of large-scale projects, billing sales remained
strong and operating profit was earned by capitalizing the new development of“MAPs for NURSING CARE”.
Other Business ････････Due to the change in the operating structure of the rental conference room, rental conference room
sales are no longer included in other business sales and operating income, and selling, general andto initial development of the cashless business, resulting in
15 a 15
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EM SYSTEMS expenses
Co ., Ltd. increased
All Rights dueReserved.
decrease in both sales and operating income.

Ⅱ. ⅴ. By Segment Sales Breakdown※Net sales by segment are the amounts before elimination of inter-segment transactions.

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16

Ⅱ. ⅵ. IT Systems for Pharmacies
Quarterly Sales （Units: Millions of yen）

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17

Ⅱ. ⅵ. IT Systems for Pharmacies
Moving Annual Total（Units: Millions of yen）

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18

Ⅱ. ⅶ. IT Systems for Clinics
Quarterly Sales （Units: Millions of yen）

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19

Ⅱ. ⅶ. IT Systems for Clinics
Moving Annual Total（Units: Millions of yen）

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20

Ⅱ. ⅷ. IT Systems for Long-term care/Welfare
Quarterly Sales （Units: Millions of yen）

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21

Ⅱ. ⅷ. IT Systems for Long-term care/Welfare
Moving Annual Total（Units: Millions of yen）

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22

Ⅱ. ⅸ. Forecast for the fiscal year ending December 2021
（Millions of yen）

※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.
※ The Company has changed the fiscal year end from March 31 to December 31 starting from the 2020 fiscal year.
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23

Ⅱ. ⅹ. Market Share and Number of Customers
IT Systems for Pharmacies

IT Systems for Clinics

IT Systems forlong-term care/welfare

Market share33.0％

Market share 3.1％

Market share 5.6％

Number of customers :16,478
Target population:50,000
Mid-term goals:25,000

Number of customers : 2,764
Target population:90,000
Mid-term goals:10,000

Number of customers : 14,087
Target population:250,000
Mid-term goals: 10,000*1 The number of customers indicates the number of pharmacies and clinics that purchased our system products.
*2 The above target populations represent the number of pharmacies and clinics that we considered as our potential customers, and differ from theactual number of registered pharmacies and clinics.
(as of June 30 , 2021)*3 Mid-term goals are as announced in May 2018.

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24

Ⅱ. ⅺ. shareholder returns
・Aim at a payout ratio of 30%
・Changing the fiscal year ended from March 31 to December 31 starting from the 2020 fiscal year0change in thefiscal year end*We conducted stock splits on April 1st, 2016 and March 1st, 2018 and January 1st, 2020 at a ratio of two shares per one ordinary share.
The aforementioned information assumes that each stock split occurred at the beginning of March 2014.
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25

Supporting Date . Shared Information System Foundation

Specialized Functions(Clinics & Pharmacies）

Clinic App

Pharmacy App(Medical Records)(Medication History, HQ
Functions)

Nursing care/welfare App
CommonFunctions（Clinics & Pharmacies）

SpecializedFunctions（Nursing care/welfare ）Medical Exam. Hearing/ Prescription Bags /Pharmaceutical Info. / Inventory

Common Master/Contents(Medication/Prescription Check/Meal Recipes)

Counter Accounting/Receipt Billing（Medical Insurance, Nursing Insurance and Independent Local Aidfor Medical Expenses）

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CommonMasterCommonEngine26

Contact:
EM SYSTEMS CO., LTD.
IR Section, General Affairs Department
Shin-Osaka Brick Bldg.
1-6-1 Miyahara, Yodogawa-ku,
Osaka 532-0003, Japan
https://emsystems.co.jp/ir/mailform.html

The contents in this presentation materials are based on assumptions judged to be valid and information available to
the Company’s management at the time they were prepared. The Company assumes no obligation to update or revise
any information, whether as a result of new information, future events or otherwise.
As forecasts contained herein are based on assumptions of numerous uncertain factors, actual results may differ
significantly from these forecasts for a number of reasons.