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 Fiscal Year Ended December 31, 2023
[Japanese GAAP]
February 14, 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 for annual general meeting of shareholders: Scheduled date for commencing dividend payments:
March 26, 2024
March 27, 2024
Scheduled date for filing annual securities report:
March 27, 2024
Preparation of supplementary financial results briefing materials: No
Holding of financial results briefing: Yes (for analysts)(Amounts of less than one million yen are truncated.)

1. Consolidated financial results for the fiscal year ended December 31, 2023 (January 1, 2023 to December 31, 2023)(1) Consolidated operating results(% indicates year-over-year change)
Net sales
Million yen

Fiscal year ended
10,235
December 31, 2023
Fiscal year ended
9,327
December 31, 2022
(Note) Comprehensive income:Operating profit

Profit attributable toowners of parent

Ordinary profit%

Million yen%

Million yen%

Million yen

%

9.7

2,428

(14.8)

2,467(14.8)

1,510(18.2)

—

2,851

—

2,894

—

1,847

—

Fiscal year ended December 31, 2023:
Fiscal year ended December 31, 2022:

Basic earnings
per share

Diluted earnings
per shareYen

1,528 million yen
1,820 million yen

Return on equity

Yen[(16.1)%][—%]

Ordinary profit tototal assets ratio

Operating profit to
net sales ratio

%

%

%

Fiscal year ended
33.90
—
14.2
18.1
23.7
December 31, 2023
Fiscal year ended
41.70
—
20.4
24.3
30.6
December 31, 2022
(Notes) 1. The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020) and other standards havebeen applied since the beginning of the fiscal year ended December 31, 2022, and the figures for the fiscal year ended
December 31, 2022 represent the figures after the application of these accounting standards. Accordingly, year-over-year
percentage changes are not stated.
2. Diluted earnings per share is not stated as there are no dilutive shares.

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen

As of December 31, 2023
14,168
As of December 31, 2022
13,071(Reference) Equity:
As of December 31, 2023:

11,501
10,020
11,237 million yen

Net assets per share
%

Yen

79.3
76.4
As of December 31, 2022:

252.23224.11
9,987 million yen(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
December 31, 2023
Fiscal year ended
December 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

1,722

(431)

(287)

8,672

1,779

(1,067)

(260)

7,665

2. DividendsFirstquarter-end
Yen

Annual dividends
SecondFiscalThird
quarter-end quarter-end
year-end
Yen
Yen
Yen

Dividend
Dividend on
payout ratio net assets ratio(consolidated) (consolidated)
Million yen%%

Total dividends(total)Total
Yen

Fiscal year ended
December 31, 2022

—

0.00

—

6.00

6.00

269

14.4

5.4

Fiscal year ended
December 31, 2023

—

0.00

—

12.00

12.00

539

35.4

5.0

Fiscal year ending
December 31, 2024
(forecast)

—

0.00

—

12.00

12.00

35.7

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%

Million yen%

Yen

Full year
11,600
13.3
2,200
(9.4)
2,200
(10.8)
1,500
(0.7)
33.66
(Note) Please refer to “1. Overview of operating results, (5) Future outlook” on page 4 of the attached materials of the Japanese version
for details.

* Notes(1) Changes in significant subsidiaries during the current period (changes in specified subsidiaries resulting in the changes
in the scope of consolidation): None
(2) 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: Yes
2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:
None4) Retrospective restatements:
None(Note)For details, please see “3. Consolidated financial statements and principal notes (5) Notes to consolidated financial
statements (Changes in accounting policies)” on page 14 of the Japanese version of this attachment.

(3) Number of shares of common stock issued
1) Number of shares issued at the end of
the period (including treasury stock)2) Number of shares of treasury stock at theend of the period
3) Average number of shares of common
stock during the period(Note)

As of December 31, 2023

46,872,000 shares

As of December 31, 2022

46,872,000 shares

As of December 31, 2023

2,320,702 shares

As of December 31, 2022

2,307,702 sharesFiscal year ended
December 31, 2023

44,562,087 sharesFiscal year ended
December 31, 2022

44,303,805 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 of common stock during the period.

(Reference) Summary of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended December 31, 2023 (January 1, 2023 to December 31, 2023)(1) Non-consolidated operating results(% indicates year-over-year change)
Net sales
Fiscal year ended
December 31, 2023
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023
Fiscal year ended
December 31, 2022

Operating profit

Profit attributable toowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen

%

7,498

(8.0)

2,052

(23.1)

2,106(22.4)

1,469(10.5)

8,152

—

2,668

—

2,713

—

1,641

—

Basic earnings per
share

Diluted earnings per
share

Yen

Yen

32.98

—

37.04

—

(Note) 1. The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 of March 31, 2020) and other standards
have been applied since the beginning of the fiscal year ended December 31, 2022, and the figures for the fiscal year
ended December 31, 2022 represent the figures after the application of these accounting standards. Accordingly, yearover-year percentage changes are not stated.
2. Diluted earnings per share is not stated as there are no dilutive shares.

(2) Non-consolidated financial position
Total assets

Net assets

Million yen

Million yen

As of December 31, 2023
12,995
As of December 31, 2022
12,295(Reference) Equity:
As of December 31, 2023:

11,0089,801
11,008 million yen

Equity ratio

Net assets per share
%

84.7
79.7
As of December 31, 2022:

Yen

247.11
219.949,801 million yen* These financial results are not subject to audit procedures to be performed by certified public accountants or an audit firm.
* Explanation on appropriate use of financial results forecasts and other matters of note
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.

3. Consolidated financial statements and major notes(1) Consolidated balance sheets(Thousand yen)Previous fiscal year
(As of December 31, 2022)

Fiscal year under review(As of December 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating

7,845,831

8,857,120

2,442,641

2,177,913

196,647

308,408

Inventories

27,053

34,112

Prepaid expenses

237,163

222,540

Other

91,737

171,812—(5,656)

10,841,074

11,766,250

153,314

153,782

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation(16,901)(29,018)

Buildings, net

136,413

124,764

16,56814,985(7,812)(8,715)

VehiclesAccumulated depreciation

8,756

6,270

Tools, furniture and fixtures

155,093

201,113

Accumulated depreciation(84,654)(117,499)

Tools, furniture and fixtures, net

70,43883,613

Total property, plant and equipment

215,608

214,647

Vehicles, net

Intangible assets
Software51,67635,016

Goodwill

1,006,104

1,099,107

Other
Total intangible assets

606

2,157

1,058,386

1,136,281

110,227

281,153

Investments and other assets
Investment securities—

35,681

Guarantee deposits

169,044

182,354

Deferred tax assets

387,002389,721

Other

290,051

162,690

Shares of subsidiaries and associates

Total investments and other assets
Total non-current assets
Total assets

1

956,326

1,051,602

2,230,322

2,402,531

13,071,397

14,168,782

(Thousand yen)Previous fiscal year
(As of December 31, 2022)

Fiscal year under review(As of December 31, 2023)

Liabilities
Current liabilities
Accounts payable – trade157,634

179,364

Accounts payable – other

629,053

430,991

Current portion of long-term borrowings

23,431

26,330

2,809

2,620

174,066

160,418

Accrued expenses

119,366

161,467

Income taxes payable

569,423

411,542

Advances received

35,83060,570

Provision for bonuses

8,072

8,456

Provision for bonuses for directors (and other officers)

135,871—

Provision for point card certificates

910,711

943,444

Other

56,05863,1782,822,329

2,448,385

107,051

71,092

7,401

4,592

Retirement benefit liability

7,943

15,027

Asset retirement obligations
Provision for share awards for directors (and otherofficers)
Provision for share awards for employees
Provision for retirement benefits for directors (andother officers)
Other

50,12851,79737,92659,59811,020

8,265

5,250

—

2,304

8,508

Lease liabilities
Accrued consumption taxes

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities

229,023

218,879

3,051,353

2,667,265

Share capital

2,405,636

2,405,636

Capital surplus

3,072,443

3,073,797

Retained earnings

5,245,727

6,486,661

Treasury shares(700,753)(700,753)

10,023,053

11,265,340

Valuation difference on available-for-sale securities(35,904)(28,292)

Total accumulated other comprehensive income(35,904)(28,292)

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Share acquisition rights

00

Non-controlling interests

32,894

264,467

Total net assets
Total liabilities and net assets

2

10,020,043

11,501,516

13,071,397

14,168,782

(2) Consolidated statements of income and comprehensive income(Consolidated statements of income)Previous fiscal year
(January 1, 2022 to
December 31, 2022)
9,327,876

Net sales(Thousand yen)
Fiscal year under review(January 1, 2023 to
December 31, 2023)
10,235,856

Cost of sales

2,915,715

3,746,774

Gross profit

6,412,160

6,489,082

Selling, general and administrative expenses

3,560,650

4,060,382

Operating profit

2,851,510

2,428,700

Interest income

1,065

3,261

Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains

8,178

5,970

—

28,368

14,945

8,247

—

2,255

Non-operating income

Dividend income of insurance
Gain on forgiveness of consumption taxes

29,055—

Miscellaneous income

5,142

7,995

Total non-operating income

58,38756,099Interest expenses

549

717

Share issuance costs

2,845

0

Loss on investments in investment partnerships

2,415

49

Loss on retirement of non-current assets
Loss on elimination of share-based compensation
expenses
Miscellaneous loss

9,775

3,210

—

12,371

2

1,415

Total non-operating expenses

15,58817,764

2,894,309

2,467,035

Gain on sale of shares of subsidiaries—

12,876

Total extraordinary income—

12,876—30,372

134,22035,000—7,806

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses
Loss on valuation of investment securities
Loss on sale of shares of subsidiaries
Total extraordinary losses

134,220

73,178

Profit before income taxes

2,760,089

2,406,732

Income taxes – current

966,795

888,590

Income taxes – deferred(67,253)(2,411)

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

3899,541

886,178

1,860,548

1,520,554

13,012

9,930

1,847,535

1,510,623

(Consolidated statements of comprehensive income)Previous fiscal year
(January 1, 2022 to
December 31, 2022)
1,860,548

Profit(Thousand yen)
Fiscal year under review(January 1, 2023 to
December 31, 2023)
1,520,554

Other comprehensive income
Valuation difference on available-for-sale securities(39,630)

7,612

Total other comprehensive income(39,630)

7,612

1,820,917

1,528,166

1,807,905

1,518,235

13,012

9,930

Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests4(3) Consolidated statements of changes in equity
Previous fiscal year (January 1, 2022 to December 31, 2022)(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCumulative effects ofchanges in accounting
policies

2,405,636

Restated balance

2,405,636

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity2,781,699

3,736,277(806,320)

8,117,292(70,135)
2,781,699

3,666,141(70,135)(806,320)

8,047,156

Changes during period
Dividends of surplus
Profit attributable to ownersof parent
Change in ownership interestof parent due to transactions
with non-controlling interests
Purchase of treasury shares
Disposal of treasury shares
Issuance of share acquisitionrightsNet changes in items otherthan shareholders' equity
Total changes during period
Balance at end of current
period(267,950)(267,950)

1,847,535

1,847,535(2,265)(2,265)

293,009

(35)

(35)

105,602398,612—290,744

1,579,585

105,566

1,975,896

2,405,636

3,072,443

5,245,727(700,753)

10,023,053

Accumulated othercomprehensive income
Total
Valuation
accumulateddifference on
otheravailable-forcomprehensive
sale securities
incomeBalance at beginning of current
periodCumulative effects ofchanges in accounting
policies

3,726

Restated balance

3,726

Share acquisition Non-controllingrightsinterests

3,726

—

17,616

Total net assets

8,138,635(70,135)

3,726—

17,616

8,068,499

Changes during period(267,950)

Dividends of surplus
Profit attributable to ownersof parent
Change in ownership interestof parent due to transactions
with non-controlling interests
Purchase of treasury shares
Disposal of treasury shares
Issuance of share acquisitionrightsNet changes in items otherthan shareholders' equity
Total changes during period
Balance at end of current
period

1,847,535
2,265
(35)
398,612
0(39,630)(39,630)(39,630)(39,630)(35,904)(35,904)

5

0
13,012(26,618)

0

15,277

1,951,544

032,894

10,020,043

Fiscal year under review (January 1, 2023 to December 31, 2023)(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodChanges during period
Dividends of surplus
Profit attributable to ownersof parent
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of current
period2,405,636

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity3,072,443

5,245,727(700,753)

10,023,053

Dividends of surplus
Profit attributable to ownersof parent
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of current
period(269,689)

1,510,623

1,510,623

1,353

1,353

—

1,353

1,240,933—

1,242,287

2,405,636

3,073,797

6,486,661(700,753)

11,265,340

Accumulated othercomprehensive income
Total
Valuation
accumulateddifference on
otheravailable-forcomprehensive
sale securities
incomeBalance at beginning of current
periodChanges during period(269,689)(35,904)

Share acquisition Non-controllingrightsinterests(35,904)

0

32,894

Total net assets

10,020,043(269,689)
1,510,623(3,353)(2,000)234,927

242,539

7,612

7,612

7,612

7,612

—

231,573

1,481,473(28,292)(28,292)

0

264,467

11,501,516

6

(4) Consolidated statements of cash flows(Thousand yen)
Fiscal year under review(January 1, 2023 to
December 31, 2023)

Previous fiscal year
(January 1, 2022 to
December 31, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation

2,760,089

2,406,732

71,75279,442—30,372

32,139176,731

Share-based compensation expenses

69,265

162,423

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 retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability(4,036)384(98,628)(135,871)

237,979

32,732

21,672

21,672—(5,250)—7,084

Impairment losses
Amortization of goodwill

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on valuation of investment securities
Loss (gain) on sales of shares of subsidiaries

(226)

—

(9,244)(9,232)549

717(14,061)(8,232)—(28,368)

134,22035,000—(5,069)(490,646)

115,336

Decrease (increase) in inventories

8,368(6,876)

Increase (decrease) in trade payables

28,25673,946

Increase (decrease) in accounts payable – other

92,009(199,103)

Increase (decrease) in accrued consumption taxes(86,271)(11,338)

Increase (decrease) in accrued expenses(8,976)

15,050

Increase (decrease) in advances received

32,192

23,827

Decrease (increase) in trade receivables

2,322(53,489)

2,778,726

2,718,621

Interest and dividend income received

8,440

8,336

Interest paid

(549)

(717)

Income taxes paid

(1,006,874)(1,003,663)

Net cash provided by (used in) operating activities

1,779,744

1,722,577

Purchase of property, plant and equipment(71,607)(55,968)

Purchase of intangible assets

Other
Subtotal

Cash flows from investing activities(40,240)(9,236)

Purchase of investment securities—(200,040)

Payments for acquisition of businesses—(10,000)

Payments of guarantee deposits(4,797)(14,825)

Proceeds from refund of guarantee deposits
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments for sale of shares of subsidiaries resulting in change
in scope of consolidation
Other

2,158

1,841

(938,845)(96,114)—(45,989)(14,044)(966)(1,067,376)(431,298)

Net cash provided by (used in) investing activities

7

(Thousand yen)
Fiscal year under review(January 1, 2023 to
December 31, 2023)

Previous fiscal year
(January 1, 2022 to
December 31, 2022)
Cash flows from financing activities
Proceeds from long-term borrowings—

100,000

Repayments of long-term borrowings(1,048)(114,430)

Repayments of lease liabilities(567)(2,998)Purchase of treasury shares

(35)

—

Dividends paid
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Proceeds from sale of shares of subsidiaries not resulting inchange in scope of consolidation
Other(267,366)(268,494)—(2,000)

8,591

—

0

—

Net cash provided by (used in) financing activities(260,425)(287,922)

3,694

2,754

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

455,637

1,006,111

Cash and cash equivalents at beginning of period

7,210,273

7,665,911

Cash and cash equivalents at end of period

7,665,911

8,672,0228