Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect, or
any other forms of damages arising from this translation.

Consolidated Financial Results for the Six Months Ended June 30, 2024
[Under Japanese GAAP]
August 13, 2024
Company name:
CareNet, Inc.
Stock exchange listing: Tokyo Stock Exchange
Securities code:2150
URL: https://www.carenet.co.jp
Representative: Katsuhiro Fujii, President
Contact: Kanji Fujii, Director and CFO
Phone: +81-3-5214-5800
Scheduled date to file semi-annual securities report:
Scheduled date to commence dividend payments: —August 13, 2024
Preparation of supplementary material on financial results: None
Holding of financial results briefing: Yes (for analysts)(Amounts of less than one million yen are truncated.)

1. Consolidated financial results for the six months ended June 30, 2024 (January 1, 2024 to June 30, 2024)(1) Consolidated operating results(% indicates year-over-year change)
Net sales
Million yen

Six months ended
5,149
June 30, 2024
Six months ended
5,014
June 30, 2023
(Note) Comprehensive income:Operating profit

Profit attributable toowners of parent

Ordinary profit%

Million yen%

Million yen%

Million yen%

2.7

986

(25.2)

983(26.4)

557(35.2)

17.3

1,318

(12.1)

1,337(11.1)

859(13.9)For the six months ended June 30, 2024:
For the six months ended June 30, 2023:

Basic earnings
per share

662 million yen
848 million yen[(21.9)%][(15.9)%]Diluted earnings
per share

Yen

Yen

Six months ended
12.50—
June 30, 2024
Six months ended
19.29—
June 30, 2023
(Note) Diluted earnings per share is not stated as there are no dilutive shares.

(2) Consolidated financial position
Total assets
Million yen

As of June 30, 2024
As of December 31, 2023
(Reference) Equity:

13,944
14,168
As of June 30, 2024:

Net assets
Million yen

Equity ratio

Net assets per share%

Yen

11,51781.4
11,501
79.3
11,345 million yen
As of December 31, 2023:

254.61252.23
11,237 million yen2. Dividends
First quarter-end
Yen

Second quarter-end
Yen

Annual dividends
Third quarter-end
Yen

Fiscal year-end
Yen

Fiscal year ended
December 31, 2023

—

0.00

—

12.00

12.00

Fiscal year ending
December 31, 2024

—

0.00
—

12.00

12.00

Fiscal year ending
December 31, 2024(forecast)(Note) Revision to the most recently announced dividend forecast: NoneTotal
Yen

3. Consolidated financial results forecast for the fiscal year ending December 31, 2024 (January 1, 2024 to December 31, 2024)
Net sales
Million yen

Operating profit%

Million yen(% indicates year-over-year change)
Profit attributable
Basic earnings
to owners of parent
per share

Ordinary profit%

Million yen

Full year
11,60013.3
2,200(9.4)
2,200(Note) Revision to the most recently announced financial results forecast: None%

Million yen%

Yen(10.8)1,500(0.7)

33.66* Notes(1) Significant changes in the scope of consolidation during the period: Yes
Newly included: 3 companies (Method360, Inc., Satt Co., Ltd, and LinDo K.K.)
Excluded:
1 company (Health Data Science, Inc.)(Note)For details, please see “2. Semi-annual consolidated financial statements and major notes (4) Notes to semi-annualconsolidated financial statements (Changes in scope of consolidation or equity method)” on page 8 of the Japanese versionof this attachment.

(2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatements
1) Changes in accounting policies due to application of new or revised accounting standards: None
2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:
None4) Retrospective restatements:
None(4) Number of shares of common stock issued
1) Number of shares issued at the end ofthe period (including treasury stock)2) Number of shares of treasury stock at theend of the period
3) Average number of shares outstanding
during the period (cumulative from thebeginning of the fiscal year)(Note)

As of June 30, 2024

46,872,000 shares

As of December 31, 2023

46,872,000 shares

As of June 30, 2024

2,313,002 shares

As of December 31, 2023

2,320,702 shares

Six months ended
June 30, 2024

44,554,395 shares

Six months ended
June 30, 2023

44,564,298 shares

The Company’s shares held by the “Board Benefit Trust (BBT)” and the “Board Benefit Trust (J-ESOP)” are included in thetreasury stock deduced in the calculation of the average number of shares outstanding during the period.

* Japanese-language originals of the semi-annual financial results reports are exempt from review conducted by certified
public accountants or an audit firm.
* Explanation on appropriate use of financial results forecasts and other matters of note1.

Financial results forecasts and other forward-looking statements provided in these materials are estimated based on information
available to the Company as of the date of publication. Actual financial results may differ from these forecasts owing to changes
in future economic conditions and other factors.

2. Semi-annual consolidated financial statements and major notes(1) Semi-annual consolidated balance sheets(Thousand yen)Previous fiscal year
(As of December 31, 2023)

Six months under review(As of June 30, 2024)

AssetsCurrent assets
Cash and deposits

8,857,120

8,926,764

Accounts receivable – trade, and contract assets

2,177,913

1,679,718

Electronically recorded monetary claims – operating

308,408

33,288Inventories

34,112

40,480Prepaid expenses

222,540

214,439

Other

171,81280,126(5,656)(5,656)

11,766,250

10,969,159

214,647

205,686

1,099,107

1,025,888

37,174

86,154

Total intangible assets

1,136,281

1,112,042

Investments and other assets

1,051,602

1,657,818

Total non-current assets

2,402,531

2,975,547

14,168,782

13,944,707

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other

Total assets1

(Thousand yen)Previous fiscal year
(As of December 31, 2023)

Six months under review(As of June 30, 2024)

Liabilities
Current liabilities
Accounts payable – trade179,364

Current portion of long-term borrowings

26,33033,278

Income taxes payable

411,542364,924

Advances received

60,570144,676

Provision for bonuses

8,456

11,109Provision for point card certificates

943,444933,571

Other818,676

572,4552,448,385

2,157,290

Long-term borrowings

71,092

115,514

Deferred tax liabilities－53

Retirement benefit liability

15,027

16,717

Asset retirement obligations
Provision for share awards for directors (and otherofficers)
Provision for share awards for employees

51,797

51,84259,59870,434

8,265

－

Other

13,10014,973

Total current liabilities

97,275

Non-current liabilities

218,879

269,535

2,667,265

2,426,825

Share capital

2,405,636

2,405,636

Capital surplus

3,073,797

3,073,797

Retained earnings

6,486,661

6,504,459

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity(700,753)(692,268)

11,265,340

11,291,624

Valuation difference on available-for-sale securities(28,292)

53,489Total accumulated other comprehensive income(28,292)

53,48900

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

2

264,467

172,766

11,501,516

11,517,881

14,168,782

13,944,707

(2) Semi-annual consolidated statements of income and comprehensive income(Semi-annual consolidated statements of income)(For the six months ended June 30)

Net sales

Previous six month period(January 1, 2023 toJune 30, 2023)
5,014,099(Thousand yen)Six months under review(January 1, 2024 toJune 30, 2024)
5,149,632

Cost of sales

1,867,742

2,063,897

Gross profit

3,146,357

3,085,734

Selling, general and administrative expenses

1,827,569

2,099,523

Operating profit

1,318,788

986,211

1,359

2,095

Non-operating income
Interest incomeDividend income
Share of profit of entities accounted for using equity
methodDividend income of insurance

2627

4,171－

2,255－

Foreign exchange gains

10,82916,913

Miscellaneous income

1,572

2,360

Total non-operating income

20,214

21,396

Interest expenses
Share of loss of entities accounted for using equity
methodShare issuance costs

393

291

－

11,4700－

Loss on investments in investment partnerships

95

83

Loss on retirement of non-current assets

97－

Loss on sale of investment securities

－

8,000

Consumption tax adjustments

－

2,000

Non-operating expenses

994

1,854

1,580

23,7001,337,421

983,906

Gain on sale of shares of subsidiaries

12,876－

Total extraordinary income

12,876－

Loss on valuation of investment securities－

48,018

Total extraordinary losses－

48,018

Profit before income taxes

1,350,297

935,888474,476

332,195

Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses

Income taxes – current
Income taxes – deferred

10,781

22,863

Total income taxes

485,258

355,059

Profit865,039

580,828

5,178

23,806

859,861

557,021

Profit attributable to non-controlling interests
Profit attributable to owners of parent3

(Semi-annual consolidated statements of comprehensive income)(For the six months ended June 30)

ProfitPrevious six month period(January 1, 2023 toJune 30, 2023)
865,039(Thousand yen)Six months under review(January 1, 2024 toJune 30, 2024)
580,828

Other comprehensive income(16,701)

Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income

81,781(16,701)

81,781

848,338

662,609843,159

638,803

5,178

23,806Comprehensive income attributable to:
Owners of parent
Non-controlling interests4(3) Semi-annual consolidated statements of cash flows(Thousand yen)Six months under review(January 1, 2024 toJune 30, 2024)

Previous six month period(January 1, 2023 toJune 30, 2023)
Cash flows from operating activities
Profit before income taxes
Share of loss (profit) of entities accounted for using equity
methodDepreciation

1,350,297

935,888(4,171)

11,47037,07439,917

Amortization of goodwill

88,21193,759

Share-based compensation expenses

85,73758,575

Increase (decrease) in allowance for doubtful accounts

1,945

—

Interest and dividend income(1,385)(2,122)

Interest expenses
Foreign exchange losses (gains)
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for share awards for directors(and other officers)
Increase (decrease) in provision for share awards foremployees
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability

393

291

(10,580)(16,950)550—(135,871)—

32,715(9,872)

10,836

10,836—(8,265)

2,250

—

4,693

1,690

Loss (gain) on sale of investment securities

—

8,000

Loss (gain) on valuation of investment securities—

48,018Loss (gain) on sales of shares of subsidiaries(12,876)—

Decrease (increase) in trade receivables

718,274

785,488

Decrease (increase) in inventories(5,618)(6,014)

Increase (decrease) in trade payables(17,347)(89,524)

Increase (decrease) in accounts payable – other(424,877)(217,058)

Increase (decrease) in accrued consumption taxes(38,253)(31,906)

Increase (decrease) in accrued expenses(16,543)(1,941)

Increase (decrease) in advances received(11,648)(3,060)Other

17,62475,974

Subtotal

1,671,429

1,683,193

Interest and dividend income received

924

2,490

Interest paid

(393)

(291)

Income taxes refund (paid)(529,253)(376,759)

Net cash provided by (used in) operating activities

1,142,707

1,308,633

Purchase of investment securities—(14,000)

Proceeds from sale of investment securities
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of shares of associates accounted for using equity
methodProceeds from collection of loans receivable

—

7,000

—

9,668

—

(650,000)

Cash flows from investing activities—

30,000Purchase of property, plant and equipment(24,116)(11,390)

Purchase of intangible assets(7,685)(42,604)

Payments for acquisition of businesses
Payments for sale of shares of subsidiaries resulting in change
in scope of consolidation
Other(10,000)(33,636)(39,391)—(4,722)(3,254)

Net cash provided by (used in) investing activities(85,915)(708,217)

5

Previous six month period(January 1, 2023 toJune 30, 2023)(Thousand yen)Six months under review(January 1, 2024 toJune 30, 2024)

Cash flows from financing activities
Proceeds from long-term borrowings

80,000—

Repayments of long-term borrowings(93,920)(12,768)

Repayments of lease liabilities
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Dividends paid

(1,404)(1,404)(2,000)—(268,029)(536,796)

Net cash provided by (used in) financing activities(285,354)(550,969)

3,206

8,652

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

774,644

58,099Cash and cash equivalents at beginning of period

7,665,911

8,672,022

Cash and cash equivalents at end of period

8,440,555

8,730,122

6