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.

Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2020
[Japanese GAAP]
February 10, 2021
EM SYSTEMS CO., LTD.
Listed on:Tokyo Stock Exchange, First Section
ＵＲＬ http://www.emsystems.co.jp
4820
Securities Code
Representative
Hiromasa Kunimitsu, President&Representative Director
Representative
Megumi Seki, Managing director in the company, General
Tel: +81-6-6397-1888
for inquiries
Manager of Administration Headquarters
Scheduled date of Annual General Meeting of Shareholders:March 17,2021
Scheduled date of payment of dividend:
March 18,2021
Scheduled date of filing of Annual Securities Report:
March 18,2021
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for securities analysts)
Company name（All amounts are rounded down to the nearest million yen）
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2021 (April 1, 2020 – December 31, 2020)（Percentages represent year-on-year changes）(1) Consolidated management performance (total)
Net sales

Fiscal year ended
Dec. 31, 2020
Fiscal year ended
Mar. 31, 2020（refer to）
comprehensive
incomeFiscal year ended
Dec. 31, 2020
Fiscal year ended
Mar. 31, 2020

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions ofyen％Millionsof yen％Millions ofyen％Millions of
yen

％

9,660

－

1,037

－

1,469

－

1,062

－

14,0236.8

1,583(39.6)

2,179(32.9)

1,393(29.3)

Fiscal year ended

1,062

Dec. 31, 2020

Millions of yen

Fiscal year ended

－

1,414

Mar. 31, 2020

Millions ofyen（27.2％）Net income per share

Diluted net income pershare

Yen 100ths of a yen

Yen 100ths of a yen

％

％

％

14.95

14.88

6.0

6.3

10.7

19.74

19.47

8.2

9.5

11.3

Return on equity

Ordinary profit on Operating profit
total assets
to net sales(Refer to) Equity in
Fiscal year ended
Fiscal year ended－ Millions of yen－ Millions of yen
earnings of affiliates
Dec. 31, 2020
Mar. 31, 2020（(Note)This company implemented a stock split at a rate of 2 shares per 1 share of ordinary stock with an effective date of January 1st,
2020. We have calculated "quarterly net income per share" and "net income after potential stock adjustment "assuming that said
stock split was conducted at the beginning of previous fiscal year.
(2) Consolidated financial position
Total assets
As of Dec 31, 2020
As of Mar. 31, 2019

Capital adequacy ratio

Net assets

Millions of yen
23,09623,445

Millions of yen
17,734
17,691

％
76.4
75.1

Net assets per share
Yen 100ths of a yen

248.55247.51

17,679 Millions of yen
As of Mar. 31, 2020
17,599 Millions of yen
As of Dec. 31, 2020（(Note)1. This company implemented a stock split at a rate of 2 shares per 1 share of ordinary stock with an effective dateof January 1st, 2020. We have calculated "quarterly net income per share" and "net income after potential stock
adjustment "assuming that said stock split was conducted at the beginning of previous fiscal year.

(Refer to) Net capital(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
Fiscal year ended
Dec. 31, 2020
Fiscal year ended
Mar. 31, 2019

Yen 100ths of a yen

Yen 100ths of a yen

Yen 100ths of a yen

Yen 100ths of a yen

442

(147)

(1,087)

7,982

2,300

(343)

(668)

8,770

－

1 －

2. State of dividends
PayoutDividendratio
on equity
Total dividends(consolidate (consolidatd)ed)Annual dividends
End of 1stquarter

End of 2ndquarter

End of 3rdquarter

End of
term

Total

Yen
100ths of
a yen

Yen
100ths of
a yen

Yen
100ths of
a yen

Yen
100ths of
a yen

Yen
100ths ofa yenMillions of
yen

％

％

Fiscal year ended
8.00
6.00
708
50.7
4.2
－
－
－
Mar. 31, 2020
Fiscal year ended
4.00
6.00
10.00
710
62.8
4.0
－
－
Dec. 31, 2020
Fiscal year ended
4.00
6.00
10.00
52.4
Dec. 31, 2021－－
(estimate)(Note) This company implemented a stock split at a rate of 2 shares per 1 share of ordinary stock with an effective date of January
1st, 2020. Regarding the dividends for the 2nd quarter of the March 2020 period, we have included the amounts of actual
dividends before said stock split. The annual dividend amount per share calculated under the post-stock split standard is 10
yen for the March 2020 period.
3. Estimated consolidated results of the Fiscal Year Ending December 31, 2021 (January 1, 2021 – December 31, 2021)

Net sales
Millionsof yenFirst half
Full year

Operating profit
Millionsof yen％6,724
13,974（Percentages represent year-on-year changes）
Net
Profit attributable toOrdinary profit
incomeowners of parent
per share

％

686
1,508

6.3

－

Millionsof yen％Millions of
yen

％

Yen
100ths of
a yen

937
2,017

(19.1)
－

622
1,357

(22.4)
－

8.76
19.10

(19.5)－(Note) The company convened its 37th Ordinary General Meeting of Shareholders on June 16, 2020. Beginning from FY2020, thecompany’s accounting period will end on December 31 instead of March 31. In addition, domestic subsidiaries with fiscal
periods ending on dates other than December 31 will make a similar change. Accordingly, consolidated performance for the
December 2020 period (the duration after the change to the fiscal period closing date) will be calculated based on the ninemonth period from April to December for the company and domestic subsidiaries with fiscal periods closing in March, andbased on the twelve-month period from January to December for overseas subsidiaries with fiscal periods closing in
December. Therefore, regarding the consolidated performance forecast for the December 2021 period, the year-on-year rate ofchange will not be listed for the entire fiscal period.

* Notes(1) Changes in significant subsidiaries during the period (changes in scope of consolidation): None
(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes to accounting policies accompanying revision to accounting standards, etc.
: None2) Changes to accounting policies other than 1.
: None3) Changes to estimates in accounting: None4) Revised restatement: None(3)Number of shares outstanding (ordinary stock)
1.
2.
3.

Number of shares outstanding at endof term (including own stock)

As of Dec. 31,
74,514,800
74,063,600
As of Mar. 31, 2020
2020
sharesshares
As of Dec. 31,
3,478,870
2,957,970
Number of own shares at end of term
As of Mar. 31, 2020
2020
sharessharesAverage number of shares outstanding
As of Dec. 31,
74,421,556
70,600,893
As of Mar. 31, 2020
during term (quarterly total)
2020
sharesshares(Note) This company implemented a stock split at a rate of 2 shares per 1 share of ordinary stock with an effective date ofJanuary 1st, 2020. We have calculated the “Number of shares outstanding (ordinary shares)” assuming that said
stock split was conducted at in the previous consolidated fiscal year.

(Refer to)Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2020 (April 1, 2020 – December 31, 2020)(1) Non-consolidated operating results
Net sales

Fiscal year ended
Dec. 31, 2020
Fiscal year ended
Mar. 31, 2020

Millions ofyen（Percentages represent year-on-year changes）
Operating profit％

Millions of
yen

8,862

－

12,274

6.6

Ordinary profit％

Millionsof yen

783

－

1,441

(39.4)－

2 －Net income％

Millions of
yen

％

1,242

－

894

－

2,047

(32.1)

1,301(29.0)

Net income per share

Diluted net income pershare
Yen 100ths of a yen

Yen 100ths of a yen
Fiscal year ended
12.59
12.53
Dec. 31, 2020
Fiscal year ended
18.44
18.19
Mar. 31, 2020
(Note) This company implemented a stock split at a rate of 2 shares per 1 share of ordinary stock with an effective date of January
1st, 2020. We have calculated "net income per share" and " Diluted net income per share "assuming that said stock split was
conducted at the beginning of previous fiscal year.

(2) Non-consolidated financial position
Total assets
As of Dec. 31, 2020
As of Mar. 31, 2019
(Refer to)
Shareholders’ equity

Net assets

Millions of yen
21,606
22,104As of Dec.
31, 2020

16,750Capital adequacy ratio

Millions of yen
16,76816,923
Millions of
As of Mar.
yen
31, 2020

％
77.4
76.1
16,831

Net assets per share
Yen 100ths of a yen

235.28236.71Millions ofyen* The current financial report is not subject to audit by certified public accountants or audit firms.
* Explanation of appropriate use of earnings forecasts, and other special items
Note concerning forward-looking statements
Estimates of future performance in this report are based on assumptions judged to be valid and information

available to the Company’s management at the time the materials were prepared, but are not promises by theCompany regarding future performance. Actual results may differ significantly from these forecasts for a numberof reasons. Please refer to “1. Overview of Results of Operations, (4) Outlook” on page 5 for forecast assumptions
and notes of caution for usage.

－

3 －TABLE OF CONTENTS OF ATTACHED MATERIALS
1. OVERVIEW OF MANAGEMENT PERFORMANCE, ETC ----------------------------------------------------- 5(1) OVERVIEW OF MANAGEMENT PERFORMANCE IN THE CURRENT PERIOD --------------------------------------- 5(2) OVERVIEW OF FINANCIAL POSITION IN THE CURRENT PERIOD ------------------------------------------------- 6(3) CASH FLOWS ---------------------------------------------------------------------------------------------------- 7(4) OUTLOOK ------------------------------------------------------------------------------------------------------- 7
2. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDS ------------------------------ 7
3. CONSOLIDATED FINANCIAL STATEMENTS AND MAJOR EXPLANATORY NOTES ------------------- 8(1) CONSOLIDATED BALANCE SHEET ------------------------------------------------------------------------------- 8(2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME-------------------------------------------------------------------------------------------------------------------- 10(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ------------------------------------------------------ 13(4) CONSOLIDATED STATEMENT OF CASH FLOWS --------------------------------------------------------------- 15(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------------------- 17－

4 －1. Overview of management performance, etc.
(1) Overview of management performance in the current period
The Japanese economy during the consolidated fiscal year concerned has undergone a massive curtailment ofcorporate activities and private consumption due to the spread of Covid-19 infections, and although economic
activities have begun to reopen following the lifting of the State of Emergency, the outlook remains uncertain as
there are no signs of Covid-19 infections coming to an end.
In the pharmacy industry, our main clients, amidst the effects of revisions to the medical system conducted in
April 2020, prescriptions are being issued for longer periods of time due to the influence of the Covid-19 pandemic,
which has reduced the overall number of prescription slips issued, and the environment surrounding medium andsmall-scale pharmacies is increasing in severity. In the healthcare (clinic) industry, there has been a decrease in thenumber of patients due to restraints on medical examinations for some medical specialties, and in the long-termcare/welfare industry, there have been changes in our clients’ management environments, including an increase intemporary closings of facilities that provide care during daytime visits or over short-term stays, and these have had
a considerable influence on our group as well.
In this environment, our group has implemented telecommuting and switched from conventional face-to-facebusiness activities to online meetings, etc. Other improvements include conducting online demonstrations, offering
trial versions downloadable from the e-commerce site “MAPs DIRECT,” and providing tools that enable clients toengage in estimate creation and configuration examinations on their own. Taking active steps to improve our nonface-to-face business activities has also led reduced costs. In addition, our group has commenced initiatives relating
to SDGs with the goal of realizing a sustainable society.
As a result, performance during the consolidated fiscal year concerned was 9,660 million yen in sales, 1,037 million
yen in operating profits, 1,469 million yen in ordinary profits, and 1,062 million yen in quarterly net income
attributable to parent company shareholders.
Accompanying the change in closing date (from March 31 to December 31), this consolidated fiscal year is anirregular 9-month fiscal period. As such, descriptions in this document do not list year-on-year performancecomparisons.
In terms of sales, although planned initial sales of services were not reached due to delays in shipping andlaunching MAPs in addition to moves to revise the commencement of new businesses and the timing of capital
investments in response to the Covid-19 pandemic, sales of existing products exceeded plans, and orders for largescale SI projects from major chain stores also contributed to sales. In addition, there was a decrease in business andadministrative expenses due to implementation of teleworking, non-face-to-face business activities, and transferring
exhibitions online.
By-segment business results are as follows. In addition, “IT Systems for Long-term Care/Welfare,” which had
previously belonged to “Other Business,” increased in quantitative importance beginning from the previous 3rdquarter consolidated fiscal year, and as such, the report segment in which it is listed has been changed.
(IT Systems and Related Business for Pharmacies)
Regarding IT systems and related business for pharmacies, although there was a decrease in sales resulting from
low initial sales of services due to delays in the shipping and expansion of MAPs, sales of existing products exceeded
initial plans. While there was a reduction in business and administrative expenses, the decrease in operating income
was, in addition to decreased profits due to fewer sales, the result of depreciation costs incurred during thisconsolidated fiscal year accompanying full-scale operation of MAPs for PHARMACY.
In addition, in regard to ”infectious disease outbreak detection services,” a joint research project between theJapan Medical Association and the Japan Pharmaceutical Association, the number of pharmacies using theservices exceeded 12,000 nationwide.
Furthermore, within our group, we have begun joint provision of EHR-related projects together with CSI Co.,
Ltd., hospitals and health insurance pharmacies in order to contribute to future developments in the healthcare
industry.
Consequently, IT Systems and Related Business for Pharmacies for this consolidated fiscal year resulted in 7,450
million yen in sales and 1,079 million yen in operating profits.
(IT Systems and Related Business for Clinics)
Regarding IT Systems and Related Business for Clinics, in order to expand our nation-wide sales channels, wehave been cultivating the clinic market by taking a broad approach using online marketing as well as conventional－ 5 －methods. Furthermore, we have continued to focus efforts on sales channels for MRN, a medical accounting system.
In addition, billing sales are increasing smoothly due to a steady increase in the number of customers
accompanying the introduction of “MAPs for CLINIC,” etc. The company entered into an operating deficit during
this consolidated fiscal year due to an increase in depreciation fees accompanying full-scale operation of “MAPs for
CLINIC.”
Consequently, IT Systems and Related Business for Clinics in the current consolidated fiscal year resulted in
1,296 million yen in sales and 35 million yen in operating profits.
(*1) MRN: Medical Recepty NEXT(IT Systems and Related Business for Long-term Care/Welfare)
Regarding IT Systems and Related Business for Long-term Care/Welfare, during the previous 2nd quarter
consolidated cumulative period, the company changed initial sales of the “Hibiki” series and “Symphony” from fiveyear gross sales to monthly sales, and entered into an operating deficit due to accrual of assets during thisconsolidated fiscal year accompanying development of “MAPs for NURSING CARE” in addition to smoothlytransitioning subscription sales resulting from an increase in licenses.
Consequently, IT Systems and Related Business for Long-term Care/Welfare for this consolidated fiscal year
resulted in 376 million yen in sales and 14 million yen in operating losses.
(Other businesses)
In our pharmacy operation business, due to the Covid-19 pandemic and closures of sports gyms and nurseryschools in the March 2020 period, there was a decrease in the number of prescriptions issued, and in our rental
conference room business, in addition to a decrease in revenue following reservation cancellations, there was anincrease in business and administrative expenses accompanying initial launch of cashless projects by consolidated
subsidiaries.
Consequently, Other Businesses for this consolidated fiscal year resulted in 576 million yen in sales and 7 million
yen in operating profits.
(*2) EHR: Electronic Health Record(The aforementioned by-segment sales and operating profits (losses) are the amounts prior to erasure of internaltransactions between segments.)(2) Overview of financial position in the current period(Assets)
Current assets at the end of this consolidated fiscal year were 11,191 million yen, a 365 million yen decrease
compared to the end of the previous consolidated fiscal year. Primarily, this is due to the fact that, although collectionof accounts receivable proceeded smoothly, there was a decrease of 787 million yen in cash and savings due topayments of corporate taxes, etc., allotments of year-end dividends, and acquisition of treasury shares.
Simultaneously, it is also due to an increase of 467 million yen in other current assets resulting from lags, etc. inmonthly deposits of accrued revenue. Fixed assets were 11,905 million yen, a 17-million-yen increase compared tothe end of the previous consolidated fiscal year. Primarily, this was due to an increase of 252 million yen in softwarein progress accompanying full-scale development, etc. of “MAPs for NURSING CARE,” an increase of 309 million
yen in investment real estate due to extensions to the conference rooms at the Osaka Main Office Shin-Osaka Brick
Building, a decrease of 112 million yen in software due to depreciation accompanying full-scale operation of “MAPs
for PHARMACY,” a business support system for pharmacies, and “MAPs for CLINIC,” a diagnostic support systemfor clinics, as well as a 305-million-yen depreciation in tangible fixed assets and a 73-million-yen depreciation in
goodwill.
As a result, total assets were 23,096 million yen, a decrease of 348 million yen compared to the end of theprevious consolidated fiscal year.
(Liabilities)
Current liabilities at the end of this consolidated fiscal year were 3,476 million yen, a decrease of 339 million
yen compared to the end of the previous consolidated fiscal year. This was primarily due to a decrease of 103
million yen in notes payable and accounts payable, a decrease of 96 million yen in other current liabilities, and adecrease of 71 million yen in arrears. Fixed liabilities were 1,885 million yen, a decrease of 52 million yen
compared to the end of the previous consolidated fiscal year. This was primarily due to a decrease of 59 million
yen in provision for product warranties due to promoting the transfer of maintenance activities to manufacturers.
As a result, total liabilities were 5,362 million yen, a decrease of 391 million yen compared to the end of the－

6 －previous consolidated fiscal year.
(Net assets)
Net assets at the end of this consolidated fiscal year were 17,734 million yen, an increase of 43 million yen
compared to the end of the previous consolidated fiscal year. This was primarily due to an increase of 352 million
yen in earned surplus due to bullish performance, respective increases of 84 million yen in capital and 97 million
yen in capital surplus due to exercise of subscription rights, etc., a decrease of 484 million yen due to acquisition oftreasury stock, and a decrease of 36 million yen in stock option.
As a result, the capital adequacy ratio was 76.4% (compared to 75.1% at the end of the previous consolidated
fiscal year).

(3) Cash flows
The amount of cash and cash equivalents (hereinafter “funds”) during the consolidated fiscal year concerned
totaled 7,982 million yen, a decrease of 787 million yen compared to the end of the previous consolidated fiscal
year.
The status of each type of cash flow during the consolidated fiscal year concerned as well as their main factors
are as follows.
(Net cash provided by (used in) operating activities)
Funds acquired through sales activities totaled 442 million yen. Although net profits for the fiscal period
concerned prior to adjustment for taxes, etc. totaled 1,520 million yen accompanying robust performance during
the consolidated fiscal year, this was mainly due to the fact that payments of corporate taxes, etc. came to 530
million yen.
(Net cash provided by (used in) investing activities)
Funds expended as a result of investment activities totaled 147 million yen. Although income from rental ofinvestment properties totaled 731 million yen, this was mainly due to the fact that expenditures due toacquisition of intangible fixed assets relating to software development came to 475 million yen, and expendituresdue to acquisition of tangible fixed assets came to 373 million yen.
(Net cash provided by (used in) financial activities)
Funds expended as a result of financial activities totaled 1,087 million yen. Although income from issuingshares totaled 147 million yen, this was mainly due to the fact that paid dividends came to 707 million yen, andexpenditures due to acquisition of treasury shares came to 499 million yen.

(4) Outlook
Looking forward, prescriptions are being issued for longer periods of time due to the Covid-19 pandemic, which
has reduced the number of prescription slips. In addition, revisions to the medical system were conducted in April
2020, and although these were not as extensive as the previous revisions, harsh conditions are expected to continue.
We expect that actions will continue to be taken to control medical fees overall within the country.
The government has expressed its intention to thoroughly promote ICT in medical related fields, and demandfor coordination of information among various professions, including in the long-term care/welfare fields, is
expected to rise higher than ever before. In our medical and pharmacy businesses, our Group will provide a higher
level of support to medical providers to improve safety and business efficiency by sharing information through the“MAPs Series,” a shared information system base.
In our long-term care/welfare businesses, we will be active in the disability welfare business field, the facilitybased service field, and the service field targeting Community-based Integrated Care centers, and we will continue
to support service providers in the long-term care service business field, disability welfare business field, andcomprehensive support business field.
In addition, in regard to the Interim Management Plan publicized on May 8, 2018, in consideration of the novel
coronavirus pandemic, if changes are necessary, we intend to release a revised plan as soon as it is deemed possible
to formulate such a plan.
The aforementioned performance forecasts are calculated based on information available as of the date ofrelease of this document. Actual performance may vary from predicted values due to various future factors.

2. Basic Approach to the Selection of Accounting Standards
The EM SYSTEMS Group currently applies Japanese accounting standards for its consolidated financial
statements. We will take suitable actions with regard to the application of International Financial ReportingStandards (IFRS) by taking into account associated factors in Japan and other countries.
－

7 －3. Consolidated financial statements and major explanatory notes(1) Consolidated balance sheet(Units: millions of yen)
As of March 31, 2020

As of December 31, 2020

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise and products
Raw materials and supplies
OthersAllowance for bad debts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures (net)Land
Lease assets
Accumulated depreciation
Lease assets (net)
Rental assets
Accumulated depreciation
Rental assets (net)
Construction in progress
Others
Accumulated depreciation
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
Accumulated depreciation
Investment real estate (net)
Allowance for bad debts
Deferred tax asset
Net defined benefit asset
Other
Allowance for bad debts
Total investments and other assets
Total fixed assets
Total assets

－

8 －

8,770
2,119
181
0
500
(16)
11,556

7,982
2,004
248
0
968
(14)
11,191

1,445
(747)
697
562
125
(94)
30
50
(42)
8
165
813
(531)
282
1,747

1,393
(733)
660
525
122
(109)
13
49
(44)
5
－
841
(603)
237
1,441

1,645
303
456
127
2,532

1,532
555
383
119
2,591

19
9,960
(3,331)
6,628
139
517
115
188
(0)
7,609
11,88823,4459
10,444(3,505)
6,938
142
519
120
143
(0)
7,872
11,90523,096

(Units: millions of yen)
As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable
Current portion of long-term loans payable
Accounts payable-other
Lease obligations
Income taxes payable, etc.
Accrued consumption taxes
Provision for bonuses
Provision for points card certificates
OthersTotal current liabilities
Non-current liabilities
Lease obligations
Net defined benefit liability
Provision for product warranties
Long-term guarantee deposited
Long-term Accounts payable-other
Deferred tax liabilities
Total non-current 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
incomeForeign currency translation adjustments
Remeasurements of defined benefit plans
Total other cumulative comprehensive
incomeSubscription rights to shares
Non-Controlling Interest
Total net assets
Total liabilities and net assets－

9 －As of December 31, 2020

937
34
578
33
237
100
358
4
1,531
3,816

833
－
506
24
176
150
344
3
1,435
3,476

20
1,041
146
721
16
14
1,937
5,754

5
1,065
86
728
－
－
1,885
5,362

2,700
3,185
12,864(1,125)
17,625

2,785
3,283
13,216(1,610)17,675

27
(53)

31
(51)

(26)

(19)

91
－
17,691
23,44555
23
17,73423,096

(2) Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)(Units: millions of yen)Previous fiscal year
(From April 1, 2019
To March 31, 2020)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Promotion expenses
Packing and transportation expenses
Advertising expenses
Provision of allowance for doubtful accounts
Provision for product warranties
Directors’ compensations
Salaries and allowances
Bonuses
Provision for bonuses
Share-based compensation expenses
Retirement benefit expenses
Legal welfare expenses
Traveling and transportation expenses
Communication expenses
Depreciation
Amortization of goodwill
Rents
Research and development expenses
Other
Total selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Rent income of real estate
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Rent expenses on real estates
Amortization of share issuance cost
Miscellaneous loss
Total non-operating expenses
Ordinary profit

－

10 －

Current fiscal year
(From April 1, 2020
To December 31, 2021)

14,023
6,971
7,051

9,660
4,757
4,903

20
29
225
(3)
4
260
2,125
218
322
61
120
404
151
69
48
113
227
48
1,018

14
18
99
(2)
(15)
202
1,596
233
279
65
85
323
66
53
31
73
161
18
559

5,468

3,865

1,583

1,037

0
1,022
17
1,040

1
730
18
750

0
5
429
－
8
444
2,179

0
0
307
－
11
318
1,469

(Units: millions of yen)Previous fiscal year
(From April 1, 2019
To March 31, 2020)

Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Gain on negative goodwill
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of non-current assets
Impairment loss
Loss on cancellation of leases
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Profit(Loss) attributable to Non-controllingshareholders
Profit attributable to owners of parent

－

11 －

Current fiscal year
(From April 1, 2020
To December 31, 2020)

0
1
4
5

40
15
－
55

4
－
31
17
53
2,131
725
12
738
1,393

2
0
－
1
4
1,520
481
(16)
465
1,055

－

(6)

1,393

1,062

（Consolidated statements of comprehensive income）(Units: millions of yen)Previous fiscal year
(From April 1, 2019
To March 31, 2020)

Net income
Other comprehensive income
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income（Breakdown）
Comprehensive income concerning parent
company shareholders
Comprehensive income concerning
non-controlling shareholders

－

12 －

Current fiscal year
(From April 1, 2020
To December 31, 2020)

1,393

1,055

(7)
28
20
1,414

4
2
6
1,062

1,414

1,068

－

(6)

(3) Consolidated Statement of Changes in Equity
Previous fiscal year (From April 1st, 2019 to March 31st, 2020)(Units: millions of yen)
Shareholders’ equity

Capital stock
Balance at beginning ofcurrent period
Changes of items
during period
Exercise of shareacquisition rights

Capital surplus Retained earnings Treasury shares

2,558

2,935

142

142

12,140（1,097)

Total
shareholders’equity16,536285

Dividends of surplus

（668)

（668)

Profit attributable toowners of parent

1,393

1,393

Purchase of treasury
shares
Disposal of treasury
shares

107

（96)

（96)

67

175

Change of scope of
consolidation
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

142

250

724

（28)

1,088

2,700

3,185

12,864（1,125)

17,625

Accumulated other comprehensive income
Total
Foreign currency Remeasurements accumulatedtranslationof defined benefit otheradjustment
planscomprehensive
incomeBalance at beginning ofcurrent period
Changes of items
during period
Exercise of shareacquisition rights

34

（81)

Share acquisition
Total net assets
rights（46)

128

16,618285

Dividends of surplus（668)

Profit attributable toowners of parent

1,393

Purchase of treasury
shares（96)

Disposal of treasury
shares

175

Change of scope of
consolidation-

Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

（7)

13

5

（36)

（31)

（7)

13

5

（36)

1,057

27

（68)

（40)

91

17,676－13 －Current fiscal year (From April 1st, 2020 to December 31st, 2020)(Units: millions of yen)
Shareholders’ equity

Capital stock
Balance at beginning ofcurrent period
Changes of items
during period
Exercise of shareacquisition rights

Capital surplus Retained earnings Treasury shares

2,700

3,185

84

84

12,864（1,125)

Total
shareholders’equity17,625

168

Dividends of surplus

（710)

（710)

Profit attributable toowners of parent

1,062

1,062

Purchase of treasury
shares
Disposal of treasury
shares

13

（499)

（499)

15

29

Change of scope of
consolidation
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

84

97

351

（484)

49

2,785

3,283

13,216（1,610)17,675

Accumulated other comprehensive income
Total
Foreign currency Remeasurements accumulatedtranslationof defined benefit otheradjustment
planscomprehensive
incomeBalance at beginning ofcurrent period
Changes of items
during period
Exercise of shareacquisition rights

27

（53)

Share acquisition Non-controllingrightsinterests

（26)

91

-

Total net assets

17,691

168

Dividends of surplus（710)

Profit attributable toowners of parent

1,062

Purchase of treasury
shares（499)

Disposal of treasury
shares29

Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

4

2

6

（36)

23

（6)

4

2

6

（36)

23

43

31

（51)

（19)

55

23

17,734－14 －(4) Consolidated Statement of Cash Flows(Units: millions of yen)Previous fiscal year
(From April 1, 2019
To March 31, 2020)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Gain on negative goodwill
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for productwarranties
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Rent income of real estate
Expenses of real estate rentInterest expenses
Loss on retirement of non-current assets
Share-based compensation expenses
Gain on reversal of share acquisition rights
Loss (gain) on sales of non-current assets
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

－

15 －

Current fiscal year
(From April 1, 2020
To December 31, 2020)

2,131
539
113
31
(4)
7
(9)

1,520
610
73
－
－
(4)
45

(75)

(59)

(41)

(13)

0

(0)

(3)

(2)

(0)
(1,022)
234
0
4
66
(1)
－

(1)
(730)
133
0
2
67
(15)
(40)

355

115

(16)
396

(50)
(487)

(80)

(123)

83
514
128
3,331
0
(0)
(1,030)
2,300

50
150
31
971
1
(0)
(530)
442

(Units: millions of yen)Previous fiscal year
(From April 1, 2019
To March 31, 2020)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from purchase of investments in
subsidiaries resulting in change in scope of
consolidation
Proceeds from rental of real estate for investment
Payments for rental of real estate for investment
Collection of loans receivable
Payments of loans receivable
Proceeds from guarantee deposits received
Repayments of guarantee deposits received
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from issuance of common shares
Purchase of treasury shares
Cash from Non-controlling shareholders
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

－

16 －

Current fiscal year
(From April 1, 2020
To December 31, 2020)

(256)

(373)

－

89

(860)
(10)

(475)
－

3

－

1,033
(234)
13
(15)
－
(0)
(16)
(343)

731
(133)
21
(19)
6
－
6
(147)

(117)
(34)
249
(96)
－
(668)
(668)

(34)
(23)
147
(499)
30
(707)
(1087)

(4)

4

1,284
7,486

(787)
8,770

－

－

8,770

7,982

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Segment and Other Information
Segment information
1. Overview of reportable segment
Segments used for financial reporting are the EM SYSTEMS Group’s constituent units forwhich separate financial information is available and for which the Board of Directors performs
periodic studies for the purposes of determining the allocation of resources and evaluating
performance.
The EM SYSTEMS Group consists of business units organized according to product categories
and business operations that are divided among different companies. For the purpose of financial
reporting, there are four reportable segments: IT Systems and Related Business for Pharmacies,
IT Systems and Related Business for Clinics, IT Systems for Long-term care/welfare and Other
Businesses.
Major products for each reportable segment are as follows:
Reportable segment

Major products

IT Systems and Related
Business for Pharmacies

Development and sales of systems for pharmacies

IT Systems and Related
Business for Clinics

Development and sales of systems for clinics

IT Systems for Long-termcare/welfare

Development and sales of systems for nursing care service providers

Other Businesses

Management of pharmacies, operation of rental conference rooms, andcashless projects

2. Calculation methods for net sales, profit/loss, assets, liabilities and other items for each reportable segment
The accounting methods for reportable segments comply with accounting policies used for the
preparation of the consolidated financial statements.
Profit for reportable segments is operating profit figures.
Inter-segment sales and transfers are based on prevailing market prices.

－

17 －

3. Information related to net sales, profit/loss, assets, liabilities and other items for each reportable segment
Previous fiscal year (From April 1st, 2019 to March 31st, 2020)(Units: millions of yen)

Reportable segment

Amounts
recorded in

IT Systems

IT Systems

and Related

and Related

Business for

Business for

Pharmacies

Clinics

IT Systems
for Long-termcare/welfare

Other
Businesses

Adjustment

Total

consolidated
financialstatements(Note)Net sales
External sales

10,821

1,881

497

914

14,115(92)

14,023

1

－

－

20

21

(21)

－

10,823

1,881

497

934

14,137(114)

14,023

Segment profit

1,667

161

(348)

127

1,607

(24)

1,583

Segment assets

3,310

722

1,489

701

6,231

17,22023,445

Depreciation

152

90

88

5

335

194

530

Increase in property, plant andequipment and intangible assets

743

419

284

2

1,449

－

1,449

Inter-segment sales and transfers
Total

Other items

Note: Segment profit is adjusted to be consistent with operating profit recorded in the consolidated financial
statements.
Current fiscal year (From April 1st, 2020 to December 31st, 2020)(Units: millions of yen)

Reportable segment

Amounts
recorded in

IT Systems

IT Systems

and Related

and Related

Business for

Business for

Pharmacies

Clinics

IT Systems forLong-termcare/welfare

Other
Businesses

Adjustment

Total

consolidated
financialstatements(Note)Net sales
External sales

7,446

1,296

376

574

9,694

(33)

9,660

3

－

－

1

4

(4)

－

7,450

1,296

376

576

9,699

(38)

9,660

Segment profit

1,079

(35)

(14)

(7)

1,020

16

1,037

Segment assets

3,404

889

585

958

5,839

17,25723,096

Depreciation

239

100

84

2

427

173

601

Increase in property, plant andequipment and intangible assets

378

24

180

10

593

－

593

Inter-segment sales and transfers
Total

Other items

Note: Segment profit is adjusted to be consistent with operating profit recorded in the consolidated financial
statements.

－

18 －

4. Reconciliation of amounts recorded in consolidated financial statements with total reportable segments(Units: millions of yen)

Net sales

Previous fiscal year

Total for reportable segments
Transfer to non-operating income
Eliminations for inter-segment
transactions
Net sales on the consolidated
financial statements

Current fiscal year

14,137

9,699

(92)

(33)

(21)

(4)

14,023

9,660(Units: millions of yen)

ProfitPrevious fiscal year

Total for reportable segments
Transfer to non-operating income
Eliminations for inter-segment
transactions
Net sales on the consolidated
financial statements

Current fiscal year
1,607

1,020

(27)

(13)

3

30

1,583

1,037
(Units: millions of yen)

AssetsPrevious fiscal year

Total for reportable segments

Current fiscal year
6,225

5,839

Transfer to non-operating income
18,42017,904
Eliminations for inter-segment(1,199)(647)
transactions
Net sales on the consolidated
23,44523,096
financial statements
Note: Corporate assets mainly include cash and deposits and real estate for investment that are not attributableto reportable segments.
(Units: millions of yen)Amounts recorded inconsolidated financial
statements

Adjustment

Total reportable segment
Other items

Depreciation
Increase in property, plantand equipment andintangible assets

Previous
fiscal year

Current
fiscal year

Previous
fiscal year

Current
fiscal year

Previous
fiscal year

Current
fiscal year

335

427

194

173

530

601

1,449

593

－

－

1,449

593

Related information
Previous fiscal year (Apr. 1, 2019 – Mar. 31, 2020)
1. Information about products and services
Descriptions of products and services are omitted because this information is presented in the segment
information.
2. Geographical information(1) Net sales
This information is omitted because sales to external customers in Japan accounted for more than 90% of
net sales in the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment in Japan exceeded 90% of property,
plant and equipment in the consolidated balance sheet.
3. Information of specific major customer
This information is omitted because no specific customers accounted for 10% or more of net sales in the
consolidated statement of income.
－19 －Current fiscal year (Apr. 1, 2020 – December. 31, 2020)
1. Information about products and services
Descriptions of products and services are omitted because this information is presented in the segment
information.
2. Geographical information(1) Net sales
This information is omitted because sales to external customers in Japan accounted for more than 90% of
net sales in the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment in Japan exceeded 90% of property,
plant and equipment in the consolidated balance sheet.
3. Information of specific major customer
This information is omitted because no specific customers accounted for 10% or more of net sales in the
consolidated statement of income.
【Impairment loss of non-current assets by reportable segment】
Previous fiscal year (Apr. 1, 2019 – Mar. 31, 2020)(Units: millions of yen)
IT Systems andRelated Businessfor Pharmacies

IT Systems andRelated Businessfor Clinics

IT Systems for Longterm care/welfare

Impairment loss
15
2
Current fiscal year (Apr. 1, 2020 – December. 31, 2020)
Not applicable.

Other Businesses

13

Total

-

31

【Amortization of goodwill and unamortized balance by reportable segment】
Previous fiscal year (Apr. 1, 2019 – Mar. 31, 2020)(Units: millions of yen)Amortization forthe period
Unamortizedbalance at the

IT Systems andRelated Businessfor Pharmacies

IT Systems andRelated Businessfor Clinics

16

-

75

22

113

-

-

297

158

456

IT Systems forLong-termcare/welfare

Other Businesses

Total

period-end
Current fiscal year (Apr. 1, 2020 – Dec. 31, 2020)(Units: millions of yen)Amortization forthe period

IT Systems andRelated Businessfor Pharmacies

IT Systems andRelated Businessfor Clinics

-

-

56

16

73

-

-

241

142

383

IT Systems forLong-termcare/welfare

Other Businesses

Total

Unamortizedbalance at theperiod-end【Gain on negative goodwill by reportable segment】
Previous fiscal year (Apr. 1, 2019 – Mar. 31, 2020)
Not applicable.
Current fiscal year (Apr. 1, 2020 – Dec. 31, 2020)
Not applicable.

－

20 －

（Per Share Information）(From(Units: Yen 100ths of a yen)Previous fiscal year
April 1, 2019 To March 31, 2020)(From

Current fiscal year
April 1, 2020 To December 31, 2020)

Net assets per share

247.30

Net234.53
assets per share

248.55

Net income per share

19.74

Net income
27.87 per share

14.95

Diluted net income per share

19.47

Diluted27.46
net income per share

14.88

Notes: 1. The Company conducted a common stock split according to a ratio of 1:2 effective on January 1, 2020.
Net assets per share, net income per share and diluted net income per share are calculated as if thisstock split had taken place at the beginning of the fiscal year ended March 31, 2020.
2. The basis of calculating net income per share and diluted net income per share is as follows:(Units: millions of yen)Previous fiscal year
(From April 1, 2019
To March 31, 2020)

Current fiscal year
(From April 1, 2020
To December 31, 2020)

Net income per share
Profit attributable to owners of parent
Amounts not available to common stock
shareholders
Profit attributable to owners of parent
available to common stock
Average number of shares of common stock
outstanding during the period (Shares)

1,393

1,062

－

－

1,393

1,062

70,600,893

71,086,475－－

967,774

325,921

Diluted net income per share
Adjusted profit attributable to owners ofparentIncrease in the number of shares ofcommon stock (Shares)－

Summary of potential stock not included in－

the calculation of “Diluted net income pershare” since there was no dilutive effect（Subsequent Events）(Acquisition of investment securities)
At a meeting held on January 13, 2021, the board of directors resolved to acquire a portion of the shares in
NHOSA Corporation, and said shares were acquired on January 29, 2021.
(1) Purpose: Net investment(2) Time of contract: January 20, 2021
(3) Overview of NHOSA Corporation① Establishment: April 28, 1979
② Capital: 95,000,000 yen③ Location: Nakano City, Tokyo④ Representative: CEO Hitoki Ishihama⑤ Main businesses: Research, development, manufacture, sale and maintenance of receipt computers fordental clinics and dialysis service support systems for hospitals

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 theconvenience of readers who prefer an English translation.
－

21 －