mascot character
ＥＭＭＡ

Results of Operations for
December 2023,1st Quarter

EM SYSTEMS CO., LTD.
(TSE Prime 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.

Contents
I.

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

II.

“Results of Operations for December 2023, 1st Quarteri.
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）
vii. IT Systems for Clinics（Quarterly Sales）
viii. IT Systems for Long-term care（Quarterly Sales）
ix. By Segment Stock-based business （Quarterly Sales）
x. Forecast for the fiscal year ending December 2023
xi. Market Share and Number of Customers
xii. Shareholder returns

Supporting Date Shared Information System Foundation
Reference

How electronic prescriptions workＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅰ. Market environment
Clinics■ Responses to the Post-Covid-19 Status(Promotion of online medical care, medical consultations by appointment, Web-based medical interview, transition toward cashless systems, etc.)■ Hybridization of exhibitions by academia and private companies, and transiti on toward holding such exhibitions online■ Online eligibility verification (mandatory from April 2023/ transitional measures until September 2023),Electronic prescriptions(from January 26, 2023),Abolition of the insurance card(aiming for autumn 2024)■ Full-scale commencement of medical digital transformation (formation of a nationwide medical information platform,
standardization of electronic medical record information, and digital transformation of medical fee revisions)

Initiatives● Promotion of digital marketing (website renewal, use of MA tools, enhancement of video/sample introductory content)● Application of online business negotiation tools, and non-face-to-face sales, Exhibiting at Hybrid Exhibitions(Enhancement of online seminars)● Operation of “EM-AVALON” (portal site for customers) and content enhancement● Provision of online eligibility verification system, Provision of electronic prescription starter kit, hosting of seminars3related toelectronic prescriptions● Participation in the government-promoted electronic medical record standardization verification projectＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅰ. Market environment

Pharmacies■ Responses to the Post-Covid-19 Status(Optimization of operations within pharmacies, promotion of online medication guidance, delivery of medications, etc.)■ Reorganization, M&A■ Pharmacy DX Strategy, Digital Shift, Strategies to connect with patients■ Online eligibility verification (mandatory from April 2023/transitional measures until September 2023),Electronic prescriptions(from January 26, 2023),Abolition of the insurance card(aiming for autumn 2024.)■ Full-scale commencement of medical digital transformation (formation of a nationwide medical information platform,
standardization of electronic medical record information, and digital transformation of medical fee revisions)

Initiatives● Promotion of digital marketing (website renewal, use of MA tools, enhancement of video/online seminars/sample introductory
content)● Proposals for utilization of IT introduction subsidies● Collaboration with Good Cycle System Co., Ltd and enhanced electronic medical history proposal capabilities● Operation of “EM-AVALON” (portal site for customers) and content enhancement● Provision of online eligibility verification system, provision of electronic prescription starter kit, hosting of seminars related toelectronic prescriptions● Sales promotion of “MAPs for PHARMACY DX”
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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅰ. Market environmentLong-term care/welfare■ Increase in the number of new facilities accompanying the aging of society, and increase in the number of large-scale chain longterm care facilities, Revision of Nursing Care Compensation■ Responses to the Post-Covid-19 Status(Provision of non-contact services, limitations on facility usage, strengthening infection countermeasures, etc.)■ Responses to the Care Plan Data Linkage System■ Trends toward revision of long-term care fees in 2024
■ Improvement of data accuracy by LIFE support（Long-term care Information system For Evidence）

Initiatives● Sales promotion of “MAPs for NURSING CARE”（website renewal, enhancement of video/sample introductory content）● Strengthening of chain store sales proposal capabilities , Promotion of TOP coverage● Strengthening of digital marketing (website renewal, use of MA tools)● Application of online business negotiation tools, non-face-to-face sale（enhancement of online seminars）, Exhibiting attrade shows and online exhibitions● Efficient support and data output for LIFE by “Sukoyaka-san”

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives
Marketing Activities ,Sale Activities
ClinicPharmacy

contents

Longterm

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Strengthening Web marketing：Implementation of SEO and SEM measures,
Application of YouTube channel, Raise awareness,Enhancement of online seminars
Product website renewal, MA tools, enhancement of video/sample introductory content
Promotional activities using TV commercials (to be rolled out while verifying effectiveness)〇

Improving business partner and customer loyalty through the comprehensive portal site "EM-AVALON"
Application of electronic contracts, and estimates and configuration examinations conducted personally bycustomers through “MAPs DIRECT,” an e-commerce site
Business partnership with Good Cycle System Co., Ltd,:Marketing:Online seminars,
Linkage with medication history
Linkage of a tool for online medication guidance and follow-ups during periods of administration
Launch of "EM Analysis Support (free)" ,Release of "MAPs Option | BunseQI (paid)"〇

Sales promotion of "MAPs for PHARMACY DX"

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Sales promotion of "MAPs for NURSING CARE"
Medical and long-term care information sharing ,Ensure collaboration among hospitals, clinics, and pharmacies,
and Long-term care/welfare facilities ,EHR (Electronic Health Record)promotion
Promotion of online eligibility verification/electronic prescriptions
Operation of new organizational structure (EM MODEL) for full-scale development of SaaS business
Updates due to the end of Windows legacy OS support
Application of M&A：ClinicＣＯ.
Segment
ClinicＥＭ
ＳＹＳＴＥＭＳ, ＬＴＤ．

：Long-termcare/Welfare
Pharmacy：PharmacyLong-term
careAll6 rights(C)2023 EM SYSTEMS
Co.ltd.Segment
General Affairs
Department
reserved.
Segment6

Ⅰ. ⅱ. Company Initiatives
Social contribution activities Support for tennis academies and professional tennis players
・Support for the tennis academy "Ai Love All Tennis Academy"・Affiliation contract with professional tennis players
・Provision of a tennis event at the Osaka Prefecture Doctors Tennis
Association Doubles Tournament on March 5
 Sponsor participation in the KIMIKO DATEx YONEX PROJECT

Also held a kids’ event inaddition to the event for
medical professionals.
©YONEXＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives
Social contribution activities＜Company-led support activities＞
 Donations to course for the development of health care AI (Course head: Specially-appointed AssistantProfessor Yoshimasa Kawazoe M.D., Ph.D.)
We endorse the activities of the University of Tokyo’s Course on Artificial Intelligence in Healthcare, which aims to develop afoundation for new medical services based on AI and ICT, and we have been supporting R&D through continuous donations tothe course since 2017.
From fiscal 2023, we plan to continue contributing to the research and development of this course in support of theestablishment of the "Medical AI/Digital Twin Development Course", which is an extension of this course.

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

 Support for polypharmacy measures (Representative: Professor Hirohisa Imai Ph.D. at the University ofTeikyo)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.

 Participation in PHR proliferation activities (Representative: Professor Taku Iwami Ph.D. at Kyoto University)

We participate in the activities of the PHR Council, which aims to promote the appropriate proliferation of Personal Health Records(PHR) and contribute to further improving health and safety, and we support the proliferation of a framework ensuring that data
relating to medical care, long-term care, health, etc. is used at the discretion of the individual concerned.

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives
Social contribution activities Participation in the Cross-ministerial Strategic Innovation Promotion Program (SIP) (Cabinet Office)Scheduled participation from 2023 in the third phase of the program, spearheaded by the Cabinet Office’s Council for Science,
Technology and Innovation (CSTI), aimed at promoting initiatives along the entire path from basic research to effective exit
strategies (practical application/commercialization)

 Cooperation in the electronic prescription model project (Ministry of Health, Labour and Welfare)

Cooperation in the e-prescription model project aimed at launching e-prescription services in advance within four regions inJapan (Sakata, Yamagata Prefecture; Sugakawa, Fukushima Prefecture; Asahi, Chiba Prefecture; and Asa, Hiroshima
Prefecture), in response to a request for cooperation from the Ministry of Health, Labour and Welfare＜Support activities based on co-creation of value with customers＞
 Commencement of acceptance of donations of EM Online Shop points (Japanese Red Cross Society and WFP)
Addition of a donation item to the conversion destination of points granted to customers based on the purchase amounts ofsupplies and consumables
10% of the donation amount added to the total by the Company following compilation of dataＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives / Strengthen sustainability management
category
Environment

Socialtopics••Endorsement of recommendations from the TCFD , Update disclosure based on recommendations
Visual representation of the reduction in greenhouse gas emissions achieved throughdigital transformation of our system group•

Review of human resource investments (skill improvement measures for employee,internal personnel system, etc.)
In-house awareness raising by our SDGs Promotion Committee,
comprised of in-house organizations
Promotion of health management••

Governance•••

External Evaluation

Disclosure of information in compliance with the Corporate Governance CodeEstablishment of a Sustainability Committee, comprised of executives(Committee Chairman: President & CEO)Enhancement of internal controls and compliance• Recognized as an Excellent Corporation for Health & Productivity Management
2023 (large enterprise category)• S&P/JPX Carbon Efficient Index: First selection• FTSE Blossom Japan Sector Relative Index: First selectionＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅰ. Financial Highlights for December 31 2023, 1st Quarter
consolidated results of December 31 2023, 1st Quarter

Topics for December 31 2023, 1st Quarter□ Contribution to sales growth by accelerating installation of systems in preparation for the introduction of online
eligibility verification, mandatory in principle (from April 2023)□ Steady growth in the number of sales in the clinic segment through the use of web marketing and organizational restructuring.
□ Special demand for hardware replacements due to the end of extended support for Windows 8.1.
□ Loss on step acquisition due to Good Cycle System Inc.’s conversion into a consolidated subsidiary.
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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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

Fully Stock-Based

Partially Stock-Based(Millions of yen)

Sales
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

14,436

16,91919,608

16,7102006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.12 2021.12 2022.12 2023.12 2024.12

Operating Profits

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

1,317

1,740

1,010

86

835

1,209

1,672

1,232

1,861

2,597

3,063

2,622

1,583

1,037

1,870

2,395

2,827

3,466

2006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.12 2021.12 2022.12 2023.12 2024.12-721-1,317

Profit Margin
ratio

13.8%

19.0%

15.3%
9.3%

8.9%

11.8%

14.7%

10.9%

14.1%

22.0%

20.7%

20.0%
11.3%

10.7%

13.0%

14.2%

14.4%

1.0%
-7.3%
2006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.12 2021.12 2022.12 2023.12 2024.12-15.0%ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅳ. By Segment Sales/Operating Profits※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.

✔IT Systems for Pharmacies･･Expanded installation of online eligibility verification systems contributed to an increase in initial sales.
Billing sales increased due to an increase an increase in the number of customers.
✔IT Systems for Clinics･･･････Significant increase in initial sales due to expanded incorporation of the online eligibility verification system as well as to anincrease in the number of system sales.
Steady growth in billing sales due to an increase in the number of customers.
✔IT Systems for long-term care/welfare･････Increase in billing sales due to an increase in the number of licenses.
Commencement of depreciation associated with the release of “MAPs for NURSING CARE”, and an increase insales and administration expenses for the purpose of market share expansion✔Other Business ････････・・・・Increase in sales in our subsidiary cashless business.
Operating income in the black due to improvements in revenue and profits.
.

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅸ. By Segment Stock-based Business
Quarterly Sales （Units: Millions of yen）

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅹ. Forecast for the fiscal year ending December 31 2023
（Millions of yen）

※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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

Market share 38.3％

Number of customers ：21,055
Target population：55,000
Mid-term goals：25,000

IT Systems for Clinics

IT Systems forlong-term care/welfare

Market share 3.3％

Market share 5.7％

Number of customers ： 2,941
Target population：90,000
Mid-term goals： 7,000

Number of customers ： 14,356
Target population：250,000
Mid-term goals： 25,000*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.
*3 Mid-term goals are as announced in February 2022.
(as of March 31 , 2023)

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅻ. 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 year

20 YEN70%

67.4%Interim dividend

60%

Year-end dividend

15 YEN

payout ratio(consolidated)
37.6%

7.75

10 YEN

25.7%

25.2%

5.625

5.875

5 YEN

0 YEN

34.1%

10

10

11

12

42.8%

44.9%

40%
38.3%

27.7%

6

5.5

6

3.25

4

4

6

50%

12

7

30%

7

8

20%

5.75

3.875

3.75

9.25

9.5

50.7%

1.875

2

2

FY 2015.3

FY 2016.3

FY 2017.3

4

4

10%

5

4

0%
FY 2018.3

FY 2019.3

FY 2020.3 FY 2020.12 FY 2021.12 FY 2022.12 FY 2023.12
change in thefiscal year end(estimated)*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 2015.

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(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Supporting Date . Shared Information System Foundation

Specialized Functions(Clinics & Pharmacies）

Pharmacy App

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

Nursing care/welfare App
CommonFunctions（Clinics & Pharmacies）

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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Specialized
Functions（Nursing care/welfare ）(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

CommonMasterCommonEngine23

Reference: How electronic prescriptions function
Electronic prescriptions are a mechanism for managing prescriptions electronically, and it is
now possible to refer to information on the most recent prescriptions and dispensing at
multiple medical institutions and pharmacies, and to check for duplicate medications, etc.
① Confirmation ofidentity/consent⑤ Confirmation ofidentity/consent④ Information navigation

My NumberCard

My Number
Card

Mynaportal &electronic prescription
record app

Patient

Health insurancecard② Confirmation ofprescription/dispensing information
and results of verification for
duplicate medications, etc.

Doctors anddentists

Patient

Electronic prescription
management service

Patient

Health insurancecard⑥ Obtention of prescription⑦ Confirmation of prescription/dispensing
information and results of verification
for duplicate medications, etc.

⑧ Registration ofprescription details③Registration of prescription

Pharmacist

Online credentials verification system

Hospital/Clinic
ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

Social Insurance Medical Fee
Payment Fund / All-Japan
Federation of National Health
Insurance Organizations

Pharmacy(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

Source: Ministry of Health,
Labor and Welfare electronicprescription website（https://www.mhlw.go.jp/s
tf/denshishohousen.html）

24

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.