mascot character
ＥＭＭＡ

Results of Operations for
December 2023, 3rd 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.

Highlights of today's presentation

１ M&A Strategies and Their Effectiveness Past M&A performance and its effects, based on PMI strategy
 Impact and effects of M&As on business performance in the current fiscal year (Good Cycle System Inc.
and Unike Software Research Co., Ltd.)

２ Medical Digital Transformation-related Business Status of introduction and impact of online eligibility verification system and electronic prescription system

３ Performance Forecast and Future Initiatives
 Revision of full-year consolidated performance forecast Full-scale operation of web marketing and digital marketing Toward expansion of market shareＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

2

Summary
Ⅰ. “Results of Operations for December 2023, 3rd Quarter ”i.
Financial Highlights
ii. Sales / Operating Profits – Summaryiii. Sales - Breakdown of Increases/Decreaseiv. Operating Profits - Breakdown of Increases/Decreases
v. Forecast for the fiscal year ending December 31 2023
vi. M&A Strategy
vii. Marketing Activities
viii. Our Share and Our Approach to Expanding Our Shareix. Changes in consolidate results by fiscal year
x. Shareholder returns
Ⅱ. “Appendix ”i.
Market Environment
ii. Company Initiativesiii. Balance Sheet Summary
iv. By Segment Sales Breakdownv.
Quarterly Sales
vi. By Segment Stock-based Business（Quarterly Sales）
vii. Recent Trends in Number of Customers
viii. Shared Information System Foundationix. How electronic prescriptions functionＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

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Ⅰ. ⅰ. Financial Highlights for December 31 2023, 3rd Quarter
consolidated results of December 31 2023, 3rd Quarter

Topics for December 31 2023, 3rd Quarter□ Unike Software Research Co., Ltd. became a consolidated subsidiary, resulting in increases in initial and stock-based sales□ New sales expansion of MAPs series and replacement of in-house products resulted in an increase in initial system sales, including service
provision□ Good Cycle System Inc. and Unike Software Research Co., Ltd. became consolidated subsidiaries, resulting in an increase in SG&A expenses□ SG&A expenses increased due to airing of TV commercials to improve recognition and special compensation paid to employees.
□ Good Cycle System Inc. became a consolidated subsidiary, resulting in an increase in Group net sales, but a loss on step acquisitions was incurred.
ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

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Ⅰ. ⅱ. Sales / Operating Profits-Summary（By Segment)
New

Operating Profits

Sales

Units：Millions of yen

Units：Millions of yen

Previous
performance
2022/09

Current
performance
2023/09

YoY change

YoY % change

Previous
performance
2022/09

Current
performance
2023/09

YoY change

YoY % change

IT Systems for
Pharmacies

9,975

11,953+1,977+19.8%IT Systems for
Pharmacies

2,370

2,178

△191

△8.1%

IT Systems forClinics

1,623

2,249

+626

+38.6%IT Systems forClinics

△210

△20

+189

ー

IT Systems forlong-termcare/welfare

401

416

+14

+3.7%

IT Systems forlong-termcare/welfare

△33

△404

△371

ー

Other
Businesses

528

671

+143

+27.1%

Other
Businesses

△35

25

+60

ー

※Net sales and operating profits by segment are the amounts before elimination of inter-segment transactions.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

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Ⅰ. ⅲ. Sales - Breakdown of Increases/Decreases（By Segment）
New
IT Systems for Pharmacies
Units：Millions of yen

・In addition to sales expansion of “MAPs for PHARMACY DX” andreplacement of hardware, initial sales increased to 977 million yen due
to Good Cycle System Inc. and Unike Software Research Co., Ltd.
becoming consolidated subsidiaries
・Billing sales increased to approx. 885 million yen as a result of anincrease in the number of customers

IT Systems for Clinics
M&A
Effectiveness・In addition to expanded installation of online eligibility verification
systems, initial sales increased to approx. 621 million yen due to anincrease in system sales
・Billing sales increased to approx. 37 million yen as a result of anincrease in the number of customers

IT Systems for long-term care/welfare
・Billing sales increased to approx. 24 million yen as a result of anincrease in the number of licenses

Other Businesses
・Unike Software Research Co., Ltd. becoming a consolidated subsidiary
increased temporary staffing business sales to 69 million yen
・Subsidiary cashless business sales increased to approx. 79 million yen※Net sales and operating profits by segment are the amounts before elimination of inter-segment transactions.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

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Ⅰ. ⅲ. Initial sales - Breakdown of Increases/Decreases（Pharmacies）
New
Units：Millions of yen※ Categories of increases/decreases are the amounts before applying revenue recognition standards

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

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Ⅰ. ⅲ. Initial sales - Breakdown of Increases/Decreases（Clinics）
New
Units：Millions of yen

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

8

Ⅰ. ⅳ. Operating Profits - Breakdown of Increases/Decreases（By Segment）
New
Shared results in all segments■SG&A expenses increased due to airing of TV commercials to expand
market share and special compensation paid to employees

Units：Millions of yen

IT Systems for Pharmacies
・Good Cycle System Inc. and Unike Software Research Co., Ltd. became
consolidated subsidiaries, resulting in an increase in SG&A expenses

IT Systems for Clinics
・Online eligibility verification system contributed to increasing profits
・Increase in gross profit due to growth in initial system sales and billing
sales

IT Systems for long-term care/welfare
・An increase in depreciation associated with the release of“MAPs for NURSING CARE”

Other Businesses
・Profit contributions from overseas subsidiaries led to an improvement in
the operating income※Net sales and operating profits by segment are the amounts before elimination of inter-segment transactions.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

9

Ⅰ. ⅳ. Operating Profits - Breakdown of Increases/Decreases
New・Increase in consolidated subsidiaries
Units：Millions of yen

・M&A Effectiveness・Payment of special compensation

・Airing of TV commercials

SG&A expenses

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

10

Ⅰ.ⅴ. Forecast for the fiscal year ending December 31 2023
（Millions of yen） (Reason for revision)■SalesPharmacies
・ Sales increased due to the consolidation of Good Cycle System Inc. and Unike
Software Research Co., Ltd.

Clinics
・ Online eligibility verification system sales increased beyond expectations

Long-term care/welfare
・ System sales of existing products (Sukoyaka-san and Hibiki Symphony) weresluggish

Others・ Unike Software Research Co., Ltd. becoming a consolidated subsidiary
increased temporary staffing business sales■Operating Profits
Pharmacies
・ Gross profit decreased due to delay in in-house replacement of “MAPs for
PHARMACY DX”
・ SG&A expenses temporary increased due to special compensation for
employees

Clinics
・ Gross profit decreased due to lower-than-planned initial system sales
・ SG&A expenses temporary increased due to special compensation for
employees

Long-term care/welfare※Segmented sales and operating profits and losses are the amounts
before elimination of internal transactions between segments.

・ Gross profit decreased due to lower-than-planned initial system sales
・ SG&A expenses temporary increased due to special compensation for
employees

Others・Profit from temporary staffing business contributed

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

11

Ⅰ. ⅵ. M&A Strategy（PMI）
New Expansion of stock-based business base
 Implementation thorough cost reduction and pursuit of economy of scale

Product
Strategy Continue software updates and customer support for purchased companies Improve the added value of each company’s systems by integrating solutions among
Group companies
 Shift to a business model centered on billing sales by increasing the added value of eachcompany’s systems
 Reduce switches to competing products by providing thorough support (ensure that atleast 95% of customers continue to use our products)

Management
Strategy Reduce the costs of replacing other companies’ products with ours and mitigate pricecompetition in competitive areas Promote measures to significantly reduce costs by integrating head office functions andreviewing real estate costs and other miscellaneous expenses
 Reduce procurement costs through joint purchasing
 Avoid duplicate software development among purchased companies and significantly
reduce development costs
 Reallocate personnel within the Group without downsizing the staff

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

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Ⅰ. ⅵ. M&A Strategy (Track Record and Effectiveness)New

Growth over 10 yearsAcquired seven companies in order to expand market share in the pharmacy market andacquire customers as the foundation for entering new markets
The target companies have low profit margins due to insufficient scale, enabling acquisition at low valuations
Our intention is to continue actively pursuing M&As
Units：Millions of yen
due to the large number of mid-sized software companies in the market
FY2013

M&A
effectiveness

Number of Customers Acquisition Amount

M&A Track Record
Unicon Co., Ltd.

Clinics

Goodwill

Goodwill Amortization(FY)1,590 locations

22

230

Amortized

2,492 locations

147

160

Amortized

6,800 license

69

391

58 ※Ending March 2024

4,312 license

125

83

16 ※Ending March 2024

119 locations

7

△4

ー

2,949 locations※

903

532

106

2,446 locations※

1,343

2,099※

120※

FY201420,708

Cosmo systems Co., Ltd.

FY2018
MW Soft Co., Ltd.
Janis Co., Ltd.

Pharmacies

long-termcare/welfare
long-termcare/welfare

FY2019
Pop・Creation Co., Ltd.

FY2023
Good Cycle System Inc.
Unike Software ResearchCo., Ltd.

Clinics

Pharmacies
Pharmacies(※Excluding overlap with EM)

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

（※Number of intangible assets 1,190）（※Number of intangible assets 59）(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

13

Ⅰ. ⅵ. M&A Strategy（Billing Sales and Stock-based Sales）
New



M&As greatly contributed to expanding customer base and increasing billing and stock-based sales



Two M&As this fiscal year also contributed to the growth of billing and stock-based sales from Q2 and Q3, respectively

Trends in Stock-based Sales

YoY Change 38.1％UP
Trends in Billing Sales

1Q

2Q

3Q

4Q

1Q

FY 2022.12

2Q

3Q

FY 2014.3

FY 2023.12
Before M&A

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

Full-year forecast
FY 2023.12

M&A Effectiveness(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

14

Ⅰ. ⅵ. M&A Strategy(Concerning the acquisition of Good Cycle System Inc. and Unike Software Research Co., Ltd.)

Complementary business
Good Cycle System Inc.

ＥＭ ＳＹＳＴＥＭＳ
ＣＯ.,ＬＴＤ.
．
Duplicate business
Unike Software Research Co., Ltd.

 Unike Software Research Co., Ltd. is a long-standing
pharmacy system company
 Currently has approx. 2,500 customers and approx. 4% of
the market share Major customers include leading pharmacy chains in the
Kanto area
 Acquisition essential for us to achieve a 50% share of thepharmacy market

New Good Cycle System Inc. has achieved the top share of the
medication history software market
 Heavy investments in medication history software in recent years
within its pharmacy-related operations
 Although we have our own medication history functions, we have
lagged behind dedicated software companies in terms of ease ofuse, etc.
 Expected cross-selling business opportunities
 Sales of Good Cycle System’s medication history system toour existing customers
 Sales of our receipt computers to Good Cycle System’s
existing customers

Business development made possible by achieving 50% of themarket share Increase in pharmacy market share by pulling even farther
ahead of the second and lower places Development of prescription data and expansion of databusiness in a way that other companies cannot imitate Provision of EHR infrastructure based on an overwhelmingly
large share of the pharmacy market
 Enhanced competitiveness in the clinic and long-termcare/welfare markets※EHR…Electronic Health Record

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

15

Ⅰ. ⅵ. M&A Strategy（Corporate Outline）
New

Good Cycle System Inc.
・Has accumulated a great deal of experience and technology in the electronic medication history system businessand maintains excellent system development capabilities
・More than 5,000 customers for its electronic medication history system
Main
Products

Smart Medication History “GooCo”“Followcare,” a follow-up support tool for medication and online medication guidance

Head office: Shibuya-ku, Tokyo Offices: 8 locations nationwide Number of employees: 89

Unike Software Research Co., Ltd.
・A 40-year veteran manufacturer of receipt computers and electronic medication histories
・Provides systems to more than 2,500 pharmacies, and has a high market share, especially in Japan’s threemajor metropolitan areas“P-CUBE n,” an integrated electronic medication history receipt computer system, andMain“SOS”, a business management and inventory optimization service
Products“SmartPOC,” a receipt computer-linked cash register system
Head office: Minato-ku, Tokyo Offices: 5 locations nationwide Number of employees: 121

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

16

Ⅰ. ⅶ. Marketing Activities
New

Currently using both mass marketing andweb marketing to take the lead

Advertising with clear targets

Digital marketing
Broad approach with no specific target

Mass marketing
TV commercials→ Able to appeal to alarge number ofunspecified people withstrong visual imagery

・Enables push advertisements

Web marketing
Search websites→ Able to advertise to searchusers and site viewers

targeting social media and otherplatform accounts (appeals basedon account attribute information)

SearchFrom 2024, the scope will expand toinclude digital marketing, with the aim offurther increasing market shareＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

17

Ⅰ. ⅷ. Our Share and Our Approach to Expanding Our Share While each market continues to consolidate around the top manufacturers, there are still many mid-sized vendors withseveral thousand customers
 Vendors with 10,000 or fewer customers bear a heavy burden when revising software accompanying system changes
 Our intention is to increase our share of each market by continuing to actively pursue M&As

IT Systems for Pharmacies

Market share 43.0％

Number of customers ：23,631：55,000
Target population：25,000
Mid-term goals

IT Systems for Clinics

IT Systems forlong-term care/welfare

Market share 3.3％

Market share 5.8％

Number of customers ： 2,973
Target population：90,000
Mid-term goals： 7,000

Number of customers ： 14,377
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.
(as of September 30 , 2023)*3 Mid-term goals are as announced in February 2022

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

18

Ⅰ. ⅸ. Changes in consolidate results by fiscal year
Flow-Based

Fully Stock-Based

Partially Stock-Based

Changes in Fullyear forecast(Millions of yen)

Under review

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

16,91920,455

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

Operating Profits

The 2020 fiscal year was a 9-month accounting period due tochange in the fiscal year end

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

2,256

Profit Margin
ratio

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

13.8%

19.0%

15.3%
9.3%

8.9%

11.8%

14.7%

10.9%

14.1%

22.0%

20.0%
11.3%

10.7%

13.0%

14.2%

11.0%

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 2023.12-15.0%ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

19

Ⅰ. ⅹ. 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

80.0%
67.4%
70.0%
56.1%

15

14
50.7%

10

37.6%

25.7%
25.2%

5.625

5.875

3.75

4

5

27.7%

34.1%

9.25

9.5

42.8%

10

6

6

10

7

7

6

60.0%
50.0%

11

7.75

5.5

44.9%
12

8

40.0%
30.0%
20.0%

5.75
7

1.875

2

2

FY 2015.3

FY 2016.3

FY 2017.3

3.25

4

4

4

4

4

FY 2018.3

FY 2019.3

FY 2020.3

FY 2020.12

FY 2021.12

FY 2022.12

10.0%

0

0.0%

Interim dividend

Year-end dividend

payout ratio(consolidated)

FY 2023.12(estimated)change 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 2015.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

20

AppendixＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

21

Ⅱ.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)■ Medication price revision and medical fee revision (medication price revision: April 1, 2024 / medical fee revision: June 1, 2024)■ Cybersecurity measures (mandatory from April 1, 2024)

Initiatives● Promotion of digital marketing (Digital advertising, 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 qualification verification system utilizing Online SHOP, Provision of electronic prescription starter3 kit,
hosting of seminars related to electronic 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.

22

Ⅱ.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)■ Medication price revision and medical fee revision (medication price revision: April 1, 2024 / medical fee revision: June 1, 2024)■ Cybersecurity measures (mandatory from April 1, 2024)

Initiatives● Promotion of digital marketing (website renewal, use of MA tools, enhancement of video/online seminars/sample introductory

content)● Collaboration with Good Cycle System, Inc., Electronic drug history related proposal-making capability, Enhancement of online
seminars● Operation of “EM-AVALON” (portal site for customers) and content enhancement● Provision of online qualification verification system utilizing Online SHOP, provision of electronic prescription starter kit, hosting of
seminars related to electronic prescriptions● Sales promotion of “MAPs for PHARMACY DX”● Unike Software Research Co., Ltd. became a consolidated subsidiary of the Company
ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

23

Ⅱ.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）■ Revision of fees for long-term and disability care (effective date: currently under discussion)

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”

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

24

Ⅱ.ⅱ. Company Initiatives

Marketing Activities ,Sale Activities
ClinicPharmacyLong

Contents- term care

〇

〇

〇

Strengthening digital web marketing：Implementation of SEO and SEM measures,
Application of YouTube channel, Raise awareness,Enhancement of online seminars Product website renewal, MA tools, enhancement ofvideo/sample introductory content

〇

〇

〇

Promotional activities using TV commercials (to be rolled out while verifying effectiveness)

〇

〇

〇

Improving business partner and customer loyalty through the comprehensive portal site "EM-AVALON"〇〇

Provision of information and necessary materials related to cyber security measures through the comprehensive portal site “EM-AVALON”(scheduled for February 2024)
Provision of "Medical Dashboard" in the "MY AVALON" My Page〇〇

Application of electronic contracts, and estimates and configuration examinations conducted personally by customers 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〇〇

Launch of "EM Analysis Support (free)" ,Release of "MAPs Option | BunseQI (paid)"

〇
〇

〇

〇

Sales promotion of MAPs series.

〇

〇

〇

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

〇

〇

〇

〇

〇

〇

〇

〇

Promotion of online eligibility verification/electronic prescriptions〇

Operation of new organizational structure (EM MODEL) for full-scale development of SaaS business
Updates due to the end of Windows legacy OS support〇

Application of M&A：Clinic Segment
Ｍ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．
ＥClinic：Long-term care/Welfare
Pharmacy：Pharmacy
Segment
Long-termcare All rights(C)2023 EM SYSTEMS
Co.ltd.
General Affairs
Department
reserved.
6
Segment25

Ⅱ.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 "EM Tennis Clinic" in Fukuoka on September 3.

Player Information
Hiromi Abe wins doubles championship forthe second week in a row
Hiromi Abe, a professional tennis player who isa member of EM Systems, won doubles championships
at W25 Makinohara and W25 Hamamatsu!

 Sponsor participation in the KIMIKO DATE x YONEX PROJECTEM Tennis Clinic in Fukuoka
Ai Love All Tennis Academy
representative
Aiko Nakamura joined the clinic.
Goichi Motomura, a professional,
also joined as a guest player!

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

From left to right, professional
tennis players Anri Nagata (Shimadzu)
and Hiromi Abe (EM Systems), who
paired up at W25 Makinohara.

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

From left to right, professional
tennis players Hiromi Abe (EM Systems)
and Natsumi Kawaguchi (Machida Lawn
Tennis Club), who pair up
at W25 Hamamatsu.

26

Ⅱ.ⅱ. Company Initiatives

Social contribution activities＜Company-led support activities＞
 Donations to Medical AI/Digital Twin Development Course (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 a foundation
for new medical services based on AI and ICT, and we have been supporting R&D through continuous donations to the 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-generation electronic
medical record sharing platform.

 Support for polypharmacy measures (Representative: Professor Hirohisa Imai Ph.D. at the University of Teikyo)
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) andcontribute to further improving health and safety, and we support the proliferation of a framework ensuring that data relating to medicalcare, long-term care, health, etc. is used at the discretion of the individual concerned.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

27

Ⅱ.ⅱ. Company Initiatives

Social contribution activities Participation in the Cross-ministerial Strategic Innovation Promotion Program (SIP) (Cabinet Office)
The Group plans to participate in the third phase of "Establishing an Integrated Health Care System" starting in 2023 as acooperating organization in a program led by the Cabinet Office’s Council for Science, Technology and Innovation to promote
initiatives from basic research to practical application and commercialization.

 Advance implementation of online eligibility verification and electronic prescriptions (Ministry of Health, Labourand Welfare)
Cooperation in the e-prescription model project aimed at launching e-prescription services in advance within four regions in Japan(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.
Continued project for advance implementation of new features for online eligibility verification and electronic prescription systems
after November 2023

＜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 of supplies
and consumables.
10% of the donation amount added to the total by the Company following compilation of data.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

28

Ⅱ. ⅱ. Company Initiatives / Strengthen sustainability management
 Disclose non-financial indicators, achievement of long-term targets, and present summary of progress (2023 ESG Data) Disclose details on the sustainability website（Link）[Human Capital-related Initiatives]• Full-scale operation of human resource education and training
system development• Provision of opportunities to self-enhance skills (e-Learning)• Introduction of employee engagement surveys•
Issues relating to organizational culture and human capital→Proactive reorganization, dialog between managers andemployees, and recruitment activities【 Target 】• Establishment of improving employee engagement scores as along-term target KPI

Employee Engagement
Rating*.

Long-term target
KPI(2030)「A」
be equivalent*Engagement ratings via Motivation Cloud by Link and Motivation Inc. Scores are calculated for a total of 11 levels
Target companies (as of November 2023): EM Systems Co., Ltd., EM Technology Lab, Pop-Creation, ChoQi Co., Ltd., Brick Pharmacy

External Evaluation• Recognized as an Excellent Corporation for Health & Productivity Management• 7th Nikkei Smart Work Management Survey 3.5 stars: one step up• S&P/JPX Carbon Efficient Index: First selection：continued authorization• FTSE Blossom Japan Sector Relative Index：continued authorizationＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

29

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

30

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

31

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

32

Ⅱ. ⅴ. Quarterly Sales（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.

33

Ⅱ. ⅴ. Quarterly Sales（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.

34

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

35

Ⅱ. ⅶ. Recent Trends in Number of Customers
IT Systems for Pharmacies

Market share

43.0％

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

IT Systems for Clinics

Market share

3.3％(C)2023 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

IT Systems for long-termcare/welfare
Market share

36

5.8％

Ⅱ. ⅷ. 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）

ＥＭ ＳＹＳＴＥＭＳ ＣＯ., ＬＴＤ．

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

CommonMasterCommonEngine37

Ⅱ. ⅸ. 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 service③Registration of prescription

Patient

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

⑧ Registration ofprescription details

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）

38

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.