MEDICAL SYSTEM NETWORK Co., Ltd.
Second Quarter of Fiscal Year Ending March 2022

Earnings Report
First Section of Tokyo Stock Exchange; Securities Code: 4350
MEDICAL SYSTEM NETWORK Co., Ltd. All Rights ReservedAbout contents covered※ The contents of this report pertaining future earnings described are based on
information the company has held, and on certain assumptions supervising rational
judgement, and are not what the company promises to achieve. There are numerous
factors that may cause actual earnings to differ. Caution is given to the accuracy of
information, and we do not take responsibility for loss etc., as a result of misinformed
information.
※ Furthermore, this report is not prepared for the purposes of investment solicitation.
Readers are responsible for their own judgement in any decision regarding
investments.

Please see the following link for our English information.

https://www.msnw.co.jp/eng/

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved2

FY3/2022 2Q : Topics and Business Overview
 April 2021 drug price revision details were announced.
 The number of new pharmaceutical network affiliates was steady.
 Although the prescription unit price of dispensing pharmacies fell, thenumber of prescriptions recovered to a certain extent and as a result,sales and profits increased.
 As of the end of September 2021, PharmaShift LINE official- accountregistered friends exceeded 170K and 552 pharmacies have adopted
the service.
 Joining the application process for the "Prime Market" at the Tokyo
Stock Exchange.

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

3

Table of Contents

Earnings Highlight・・・

５

Business Summary and Core Strategies

・・・

12

Earnings Forecast for FY3/2022 and Interim
・・・
dividend

25

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved4Earnings Highlight

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

5FY3/2022 2Q : Consolidated results

FY3/2021
2Q（Unit: million yen）

FY3/2022
2Q(original *4
forecast )Year-on-year

FY3/2022
2Q(result)

ChangeProgress rate v.s. forecast

Change (%)

Difference

Differrence (%)

51,04551,85052,169+ 1,124+ 2.2%+ 319

100.6%

2,787

2,800

3,253

+ 466

+ 16.7%+ 453

116.2%

5.5%

5.4%

6.2%

1,355

1,400

1,862

+ 506

+ 37.4%+ 462

133.0%

2.7%

2.7%

3.6%

1,397

1,750

2,235

+ 838

+ 60.0%+ 485

127.8%

2.7%

3.4%

4.3%

owners of parent

578

750

1,431

+ 852

+ 147.2%+ 681

190.9%

Profit margin

1.1%

1.4%

2.7%

19.08

24.87

47.46

+ 28.38－+ 22.59

Net sales
EBITDA*1

Profit margin

Operating profit
Profit margin

Ordinary profit
Profit margin

Profit attributable toEarnings per share
(Yen)

*2

*3

－

*1 EBITDA is the※calculated value of “operating profit + depreciation + amortization of goodwill”*2 Includes 366 million yen in subsidy income for countermeasures against COVID-19*3 Includes gain on sales of investment securities and tax effect of absorption-type merger of Himawari Nursing Station, Inc. totaling 272 million yen.
*4 Figures are original forecast announced on May 7, 2021, separately revision forecast announced on October 28, 2021
MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

6FY3/2022 2Q : Results in each segment part

■Net sales（Unit: million yen）

FY3/2021
2Q

Net sales
Community Pharmacy*1

Network Segment

Other 3 Segments*2

Adjustments

FY3/2022
2Q

Change (%)

Change51,04552,169+ 1,124+ 2.2%

48,54049,663+ 1,122+ 2.3%

2,796

2,856

+ 59

+ 2.1%

(292)

(350)

(57)

－

※

■Operating profit（Unit: million yen）

Segment profit

ProfitmarginFY3/2022
2Q

ProfitmarginChangeChange (%)+1,355

2.7%

1,862

3.6%

+506

+ 0.9 pt

+ 37.4%

*1

2,369

4.9%

2,885

5.8%

+516

+ 0.9 pt

+ 21.8%

*2

(10)

－

+20

(0.7%)+30－－(1,003)－(1,043)

－

(40)

－

－

Community Pharmacy
Network Segment

Other 3 Segments
Adjustments

FY3/2021
2Q※*1 Pharmaceutical Network Business, Dispensing Pharmacy Business, Manufacture and Market Pharmaceuticals Business, Digital Shift Business*2 Leasing and Facility related Segment, Meal Catering Segment, Home Visit Nursing Segment

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

7

FY3/2022 2Q: Comparison to previous term
■ Net sales■ Operating profit(Unit: million yen)

FY3/2021 2021/3期
2Q results

51,045

Pharmaceutical
医薬品ネットワーク
network

51,045

調剤薬局
Dispensing Pharmacy

51,2012021/3期
FY3/2021 2Q
results+ 156(Unit: million yen)

1,355

Pharmaceutical
医薬品ネットワーク+ 199

network+ 1,059

Manufacture and医薬品製造販売
MarketPharmaceuticals

調剤薬局
Dispensing Pharmacy

+ 355

+ 331

Manufacture and医薬品製造販売
MarketPharmaceuticals+ 17

Leasing and賃貸設備
Facility
related52,615+ 97

Leasing and賃貸設備
Facility
related+ 15

給⾷Meal Catering

52,631(81)

給⾷Meal Catering

+ 14

Home
visit
訪問看護
Nursing

52,631

+ 42

Home
visit
訪問看護
Nursing

+ 0.7

その他
Other

(70)

Other
その他

52,169FY3/2022 2022/3期
2Q results

52,169(504)

2022/3期
FY3/2022 2Q
results

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

1,862

8

FY3/2022 2Q : Comparison to original forecast■ Net sales

2022/3期
FY3/2022 2Q
forecast(Unit: million yen)2022/3期
第２四半期計画
FY3/2022
2Q2022/3期
forecast

51,850

Pharmaceutical
network
医薬品ネットワーク

調剤薬局
Dispensing Pharmacy

Number of prescriptions at existing
pharmacies +371
Prescription unit price at existing
pharmacies +508

FY3/20222022/3期
2Q results

+ 655

(289)

52,169(Unit: million yen)

1,400

Pharmaceutical
医薬品ネットワーク
network

(47)

Other
その他

■ Operating profit

Dispensing Pharmacy
調剤薬局

+9

Number of prescriptions atexisting pharmacies +129
1,409
Prescription
unit price atexisting pharmacies +233

+ 460

Other
その他

FY3/2022 2022/3期
2Q results

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

(7)

1,862

9

FY3/2022 2Q : Consolidated balance sheet
Point

Assets: Decrease in cash & deposits and goodwill
Liabilities and Net Assets: Decrease in loans, increase in retained earnings■End of FY3/2021（Unit: million yen）

■End of FY3/2022 2Q（Unit: million yen）

Assets64,448 Liabilities

53,260Assets62,433 Liabilities

49,928Current assets

19,313 Current liabilities

25,418Current assets

18,086 Current liabilities

24,116

Cash and deposits

10,118 Short-term loans*1

9,961

Cash and deposits

8,215 Short-term loans*1

10,079Fixed liabilities

27,841

Fixed liabilities

25,811

Fixed assets

45,134 Long-term loans

21,556

Fixed assets

44,346 Long-term loans

19,757

Tangible fixed assets

24,634 Net assets

11,187

Tangible fixed assets

24,727 Net assets

12,504

Intangible fixed assets

13,572 Capital stock

2,128

Intangible fixed assets

13,134 Capital stock

2,128

Goodwill

13,145 Capital surplus

1,182

Goodwill

12,657 Capital surplus

1,182

Investments and otherassets6,926 Retained earnings

8,305

Investments and otherassets6,484 Retained earnings

9,583

Treasury stock(344)

Treasury stock(326)

Total assets

64,448

Total liabilities andnet assets

62,433

Total liabilities andnet assets

64,448

Total assets

Equity ratio

17.3%

Equity ratio*2（Equity ratio with taking into account net cash

20.5%)（Equity ratio with taking into account net cash

62,43320.0%*223.0%)*1 Includes long-term loans that will be repaid within the year
*2 Own capital/(Total assets – Cash and deposits)

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

10FY3/2022 2Q : Consolidated cash flows
Cash flows fromoperating activities

913
million yen

Cash flows frominvesting activities(832)

EBITDA*
Income taxes paid
Changes in working capital

3,253 million yen(1,889) million yen(537) million yen* Calculated by “operating profit + depreciation + amortization of goodwill”

Acquisition of furniture, fixtures, and buildings,
etc.

(1,020) million yen

Loan amount reduced
Cash dividends paid

(1,696) million yen(152) million yen

million yen

Cash flows fromfinancing activities(1,982)
million yen

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

11

Business Summary and Core
Strategies

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

12FY3/2022: Core strategies

Republish■Establish a pharmacy management model to deal with COVID-19 related challenges and maintaining
earnings through synergies from inter-business collaboration
Core strategies and numerical targets for the current
fiscal year

Summary: first 3 years
5,000 affiliates expansion achieved 2 years earlier than
anticipated

7,300 affiliates at the end of March 2022 ( +1,184 YoY)

Building a system to reach 10,000 affiliates longer term•Single unit price negotiation for all ethical drugs

Further promotion of streamlined distribution•

Improving the efficiency of pharmacy operations (tablet
medication history, automatic ordering system)Strengthening interpersonal work and introducing a new
education system•

Promote enhancement of pharmacy functions (healthsupport functions)

Acquisition of prescriptions using on-line (LINE, prescription
transmission) tools•

Commencement of improved personnel allocation

Develop outlets mainly in medical malls•

Expansion of product lineup by also utilizing products
developed by other companies

Expand sales to pharmaceutical network affiliates•

Became profitable in fiscal year ending March 31, 2021•

Service started in March 2021•

Improved occupancy rates for Wisteria Senri Chuo and
M1

Meal Catering Segment, Home
Visit Nursing Segment•

Base relocation and cost revisions

Finance••

Pharmaceuticals
Network BusinessCommunity
Pharmacy
Network
Segment

Dispensing
Pharmacy
Business

Manufacture andMarketPharmaceuticals
Business

Digital ShiftBusiness
Leasing and facility related
Segment

ESG/Health management•→ Target 1,700 at the end of March 2022

Expansion of pharmacies with official LINE accounts→ Target 3,300 at the end of March 2022



Achieve 90% occupancy in all facilities; steady operation

Safety-first operation

Steady balance of payments

Careful selection of investments

Securing profits through cost control

Recognized as a 2020 Certified Health & Productivity
Management Outstanding Organization in the “largeorganization” categoryProjects according to SDGs; promote CSR activities

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

13

Pharmaceuticals Network Business: Earnings summary(as of September 30, 2021)

Affiliates increased by 584 from the end of the previous fiscal year to 6,700■ Full year

■ 2Q ■ 2Q of FY3/2022■Network affiliates (actual) （Unit: No. of network affiliates）
8,000

6,116

6,000

0

2,509

FY3/2018

2,000
1,500

5,245

4,000
2,000

6,700

■Network affiliates (net increase)（Unit: No. of network affiliates）

1,000

3,790

+1,281

+871
+739

500

FY3/2019

FY3/2020

FY3/2021

FY3/20220+1,184
FY3/2022
target+1,455+242
FY3/2018+467
FY3/2019+770
FY3/2020+584+391
FY3/2021

FY3/2022■Ordering volume of pharmaceuticals（Unit: one hundred million yen）

4,500

1Q

3,917
3,367

3,000
2,337
1,500

0

2,150

1,691

■FY3/2021 Breakdown of network affiliates

777

1,019

FY3/2018

FY3/2019

1,550
FY3/2020

FY3/2021

3Q

4Q

Total

New

440

353

244

466

1,503

Withdrawal

(68)

(334)

(135)

(95)

(632)

■FY3/2022 Breakdown of network affiliates
1Q

1,918

2Q

(New/Withdawal)(New/Withdawal)

2Q

New

405

395

Withdrawal

(154)

(62)

The number of new
affiliates was steady

FY3/2022

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

14

Pharmaceuticals Network Business:
Network affiliates distribution map (as of September 30, 2021)

6,798 network affiliates
as of October 31, 2021
MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

15

Pharmaceuticals Network Business :Strengthen support for pharmacy management
医薬品NW■ Renewal of PARTNERS NAVI, a portal site for affiliates
Portal Site Top Page

Revamped in July 2021
Expanded functions and created a simple screen to make it easier touse, with the aim of further contributing to the support of affiliates

Newly installed functions

Data Analysis〔 Generic product switching 〕Data Analysis
Purchase Analysis Function︓ NHI drug price difference・ EOS order*
rate ・ Return rate ・ Daily visualize data such as DSE digestibility data
Generic product switching function ︓ List items that can be switched togenerics with higher profit margins based on actual purchasing information
Management can simulate the improvement of profit by themselves
New consultation service for home visits
Pharmacists with extensive experience in home visits provide support andare available to address a variety of concerns* Dead Stock Exchange■ Created an introduction video for pharmaceutical network services
Created a 2-minute, 17-second introductory video toinform the public about how the service works and thebenefits of joining
Please visit our website for more information
https://www.msnw.co.jp/pharmacy-management/

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

16

Dispensing Pharmacy Business: Trends in number of pharmacies
5 new outlets (1 from acquisition) and 2 outlet closures/transfer since end of previous
fiscal year
Hokkaido area

Outlets at end
of FY3/2021

Outlets at end
of FY3/2022
2Q

Outlets as of
October 31

Outlets at end of
previous term

416

416

419

Openings

7

4

3

Closings andtransferringbusinesses

(13)

(2)

(1)

M&A

6

1

ー

Total

416

419

421

121
outlets

Chugoku/Shikoku
area

Tohoku area

21 outlets

24 outlets
Kanto/Koshinetsu area

Kyushu area

60 outlets

94 outlets

Kinki area

Tokai/Hokuriku
area

55 outlets

44 outlets■Dispensing pharmacy outlet number trends of the past 10 years

As of September 30

FY3/2013

FY3/2014

FY3/2015

FY3/2016

FY3/2017

FY3/2018

FY3/2019

FY3/2020

FY3/2021

FY3/2022
2Q

Openings

21

14

10

9

8

8

5

8

7

4

Closings and transferring ofbusinesses

(8)

(7)

(13)

(8)

(4)

(5)

(14)

(15)

(13)

(2)

M&A

33

45

27

7

20

19

30

3

6

1

Number of outlets

269

321

345

353

377

399

420

416

416

419

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

17Dispensing Pharmacy Business: Monthly dispensing fee（YoY)(Unit:%)
FY3/2021

10.0

FY3/2022
5.6

5.3
2.5

0.0

1.6

(0.2)

(0.7)
1.5

(1.6)

(3.0)

(7.7)

(0.9)
1.0

(5.5)

(4.4)

(3.6)
(2.0)

(1.2)

(3.9)

(5.1)

(6.3)

▲10.0

5.2

1.2

5.6

4.2
1.6

4.5

3.3

2.8

0.5

0.4

(5.0)

4.3

4.4

(3.7)
(5.1)

(8.5)

Dispensing fee of all pharmacies (YoY)▲20.0

Dispensing fee of existing pharmacies (YoY)
2020

Apr

May

Jun

Jul

Aug Sep

Oct

Nov Dec

Apr

May

Jun

Jul

Aug

Sep

Total for the
first half

Oct

Nov

(0.2)

(7.7)

2.5

(3.0)

(5.5)

(0.7)

(2.4)

1.6

(1.6)

(8.5)

1.5

(3.9)

(6.3)

(1.2)

(3.4)

1.0

Mar

2021

Jan

Feb

Apr

May

Dec

Jan

Feb

Mar

Total for thesecond half

Apr

May

Jun

Jul

Aug

Sep

FY3/2022
2Q

(4.4)

(0.9)

(3.7)

(5.1)

5.2

(1.1)

1.2

5.6

4.2

1.6

5.6

4.4

3.7

(5.1)

(2.0)

(3.6)

(5.0)

5.3

(1.5)

0.4

4.5

3.3

0.5

4.3

2.8

2.5

FY3/2021（unit:%）
Dispensing fee ofall pharmacies(YoY)
Dispensing fee ofexisting pharmacies
(YoY)

Jun

Jul

Aug Sep

FY3/2022※ “Existing pharmacies” refer to pharmacies that continue to be in business on or after April 1, 2019 and April 1, 2020.
MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

18Dispensing Pharmacy Business: Monthly unit price and number of prescriptions
at existing pharmacies（YoY）-

The unit price of prescriptions had been declining due to a decrease in long-termprescriptions, but is now on around a par with the previous year.
The number of prescriptions has recovered to some extent

Point
-

(Unit:%) Prescription unit price
30.0
18.2
12.2

15.0

9.2

8.0

3.0

5.4

0.7

0.8

5.6

8.1

8.4

10.5
5.8

0.0
(10.5)
(5.6)

▲15.0

(1.8)

(2.2)

Unit price (YoY)（FY3/2021）(0.4)

Unit price (YoY)（FY3/2022）▲30.0

Number of prescriptions
30.0

15.0

12.2

10.7
5.2

2.8

3.5

5.7

2.0

0.0

▲15.0

(16.8)(18.4)

(6.3)

(7.0)
(11.1)(9.0)

Number of prescriptions (YoY)（FY3/2021）

▲30.0
Apr

May

Jun

Jul

(4.3)
(12.3)(9.6)(12.8)(10.2)

Dec

Jan

Feb

Number of prescriptions (YoY)（FY3/2022）

Aug

Sep

Oct

Nov

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

Mar

19

Dispensing Pharmacy Business: Dispensing fee breakdown■All pharmacies
No. of prescriptions (1000) a
Drug charge perprescription
Unit priceTechnical fee per(yen)prescription
Total bDispensing fee (million yen)
c=axb

■Existing pharmacies
No. of prescriptions (1000) a
Drug charge perprescription
Unit priceTechnical fee per(yen)prescription
Total bDispensing fee (million yen)
c=axb

FY3/2021
2Q

FY3/2022
2Q

ChangeChange(%)

【Prescription unit price trends 】（Unit: yen）

4,043

4,367

+ 324

+8.0%

8,322

7,819

(503)

(6.0%)

2,360

2,435

+75

+3.2%

6,000

10,681

10,254(428)(4.0%)

3,000

43,18844,784+1,596+3.7%

FY3/2021
2Q

FY3/2022
2Q

ChangeChange

3,998

4,234

+235

(%)
+5.9%

8,333

7,915

(418)

(5.0%)

2,361

2,439

+78

+3.3%

10,694

10,354(340)(3.2%)

42,763

43,844+1,080+2.5%

Drug charge

Technical fee

10,681

10,254

8,322

7,819

2,360

2,435

FY3/2021 2Q

FY3/2022 2Q

12,0009,000

0Drug charge(503)yenTechnical fee+75yen【Prescription unit price trends 】（Unit: yen）

12,000Drug charge

Technical fee

10,694

10,354

8,333

7,915

Drug charge(418)yen

2,361

2,439

Technical fee+78yenFY3/2021 2Q

FY3/2022 2Q

9,000
6,000
3,000
0

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

20Dispensing Pharmacy Business: Dispensing fee revision
Acquisition of dispensing fee is progressing mostly as planned. We are continuing to focus oninterpersonal services

Basic dispensing fee
ratio(points)

FY3/2021（End of March 2021）

FY3/2022 2Q(End of September 2022)

FY3/2022 plan（End of March 2022）

Results

Results

Target9points
4outlets

11points
3outlets
0.7%

16points
188outlets
Basic fee 1
Basic fee 2
Basic fee 3-b
Special basic fee

42
26
16
9

26points
4outlets

45.7%

42points
216outlets
52.6%

28
22
15

42points
234outlets

42.6%

56.0%

15points
39outlets

0points
48outlets
11.7%

28points
220outlets
22points
104outlets

Weighted average per prescription
31.4 points
15points
50outlets

53.5%

Weighted average per prescription
21.4 points

42points
55.5%

Weighted average per prescription
31.2 points

0points
44outlets
15points
10.2%

10.5%

12.0%
22points
99outlets

0points
11.6%

28points
225outlets
53.8%

23.7%

25.3%

16points
42.2%
26points
0.9%

0.7%

9.5%

85% or higher
80% or higher
75% or higher

16points
177outlets

26points
3outlets

1.0%

Weighted average per prescription
30.7 points

Generic drug dispensing
premium ratio (points)

9points
1.4%

1.0%

Weighted average per prescription
21.7 points

22points
25.1%

28points
53.1%

Weighted average per prescription
21.4 points

Community support system
premium ratio (points)

Community support
system premium

0points
223outlets
54.3%

38points
188outlets
45.7%

0points
224outlets

38points
194outlets
46.4%

0points
53.3%

38points
46.7%

53.6%

38
Weighted average per prescription
19.1 points

Weighted average per prescription
19.2 points

Weighted average per prescription
19.6 points* Excludes suspended pharmacies

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved21

Dispensing Pharmacy Business:
Strengthening our function as a community pharmacy■ Follow-up during the medication period• In accordance with the amendment of the Pharmaceutical andMedical Device Act（(PMD Act) , follow-up during the medication
period is now mandatory as of September 2020, and we monitor
patients' medication status and provide guidance as necessary■ Number of follow-ups per month（ Unit: case ）30,00025,00020,000Case• Follow-up after insulin unit change

Cooperation
with doctors• Symptoms of suspected hypoglycemia occur andinform prescribing physician• Receive instructions for unit changes and respond topatients

15,0005,000

Follow-up
contents• Doctor prescribes and pharmacist provides
medication follow-up• Provide results to medical institutions as soon as
possible• Provide benefits to patients by implementing
measures in cooperation with medical institutions

10,000As pharmacists have been able to follow-up, we have beenable to help patients avoid certain difficult or adverse situations■ Strengthen functions through pharmacy certification system

0
2020

Oct

Nov Dec

2021
Jan

Feb MarNumber of results for the
first half
Sep/2021︓25,261
Total ︓144,756• “Pharmacy Certification System by Function" started in August 2021 by the revision of the
PMD Act• A system in which prefectural governors certify pharmacies with specific functions, andclassify them as down below- Community collaborative pharmacy︓Pharmacies that can respond to / deal with information linkage
with local medical institutions and other pharmacies- Pharmacy collaborating with specialized medical institutions︓ Pharmacies that can handle specialized
preparations that require a high level of expertise for patients with cancer, etc.

⇒ Patients can choose the pharmacy that is right for them

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

Apr May Jun

Jul

Aug Sep•

To provide higher quality medication
therapy through medication follow-up•

Also focus on education to ensure
quality pharmacotherapy

Partnering with local medical
institutions to become thepharmacy of choice for patients
As of September 30, 2021
Community Collaborative
Pharmacy８pharmacies（50 stores expected during
this fiscal year）

22

Manufacture and Market Pharmaceuticals Business: New generic drugs of
9 products (5 components) in the first half.
(Unit : No.
of affiliates)

1,500

1.5 billion
yenaffiliates
products

1,000

500

As of end of September 2021

(Unit : No.
of products)

Available products (components)

150

77 products (39 components)
Upcoming releases
3 products (2 components) in Dec. 2021

100products

34 components
68 products
23 components
17 components 51 products
39 components

100(End of FY3/2022 target: 100 products)

50
77 products(End of September)

34 products

0

Number of available locations

1,362 affiliates

0
Mar/2019

Mar/2020

Mar/2021(End of FY3/2022 target: 1,700 affiliates)

Mar/2022

Forecast

Leasing and Facility related Business: Occupancy rate trends in Wisteria
Sluggish occupancy growth due to restrictions on sales activities caused by COVID-19
100%●96.0%（Wisteria Kiyota）●86.4%（Wisteria Otaru Inaho）●85.9%（Wisteria N17）●78.1%（Wisteria Senri Chuo）●70.7%（Wisteria M1）

90%

80%

End of FY 3/2022 target:

Over 90% in all facilities

70%

60%
Mar/2020

Jun/2020

Sep/2020

Dec/2020

Mar/2021

Jun/2021

Sep/2021

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

23

Digital Shift Business ー Exceeded 200K friend registrations
・Service of support for "becoming a family pharmacy" that connects with patients via LINE・In the 7 months since the service was launched, 200K friends have registered andPointapproximately 600 pharmacies have installed the service.
・Focus on improving functions and developing new services

Actual results600

20.0■Patients register their pharmacies

Number of pharmacies installed
導⼊店舗数(店)友だち登録数
Number of friends registered
400

200

0

350
36

168

Service Description

206K friends

444

507

552

595

261

Mar/2021 Apr/2021 May/2021 Jun/2021

Jul/2021

Aug/2021

Sep/2021

Oct/2021

to use on the official LINE account“Tsunagaru
Pharmacy”.
15.0■Main functions:10.0 Electronic medication organizer, prescription
transmission, medication follow-up, online
medication guidance/payment
5.0■ Pharmacies can use the above all-in-one
functions for 10,000 yen per month, with full
0.0
security (meets 3 ministries and 2 guidelines
for medical information management)

Number of registered friends of the official LINE account
Main initiatives
206,000 users
17.8万人つながる薬局
Our A/C
調剤薬局A
A/C A



Business alliance with Shinryo Co., Ltd. which has strengths inmedicine bags and packaging containersHolding regular webinars

Exhibited and lectured at large-scale exhibitions (businessmeetings with over 300 companies)

Development of advanced prescription transmission, medication
follow-up, and multidisciplinary collaboration



New Service Development

3.8

調剤薬局B
A/C B

1.3

調剤薬局C
A/C C

1.1

調剤薬局D
A/C D

0.7

調剤薬局E
A/C E

0.5

No.1 Dispensing
Pharmacy Official
LINE Account※As of October 31, 2021
※2021年10⽉末時点
based onour research

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

24Earnings Forecast for FY3/2022 andInterim dividend

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved25

Earnings forecast for FY3/2022: Consolidated forecasts
Point

Republish- Sales and profits are expected to increase slightly this fiscal year. Although the number of affiliates in thepharmaceutical network and the number of prescriptions are expected to increase, these will be offset
somewhat by the impact of the NHI price revision and increase in expenses- Net income expected to decrease due to the absence of one-time extraordinary gains recorded in theprevious fiscal year.

(Unit: million yen)

FY3/21

FY3/22(results)(forecast)

ChangeChange (%)

Net sales

104,257

105,700+ 1,442+ 1.4 %

*１

6,426

6,500

+ 73

6.2 %

6.1 %

(0.1 pt.)+ 1.2 %

Operating profit

3,429

3,500

+ 70

Profit margin

3.3 %

3.3 %

－

+ 2.0 %

Ordinary profit

3,479

4,000

+ 520

Profit margin

3.3 %

3.8 %

+ 0.5 pt.

+ 15.0 %EBITDA*２

Profit attributable to ownersof parent
Profit margin

2,198

1,800

(398)

2.1 %

1.7 %

(0.4 pt.)

Earnings per share

72.51

59.69

(12.82)(Yen)(18.1 %)－

*1 EBITDA is the calculated value of “operating profit + depreciation + amortization of goodwill”*2 Of this amount, ¥630 million was due to the recording of extraordinary income from partial share sales of a group affiliate .

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved

26

Earnings forecast for FY3/2022: Forecast in each segment■Net sales(Unit: million yen)

FY3/21

FY3/22(results)(forecast)

Republish

ChangeChange (%)

104,257

105,700+ 1,442+ 1.4 %

Community Pharmacy
Network Segment*1

99,214

100,146+ 932+ 0.9 %

Other 3 Segments*2

5,644

6,166

+ 521

+ ９.2%

Adjustments

(601)

(612)

(11)

Net sales■Operating Profit(Unit: million yen)
Profit percentage in brackets

FY3/21

FY3/22(results)(forecast)

Change－Change (%)

3,429

3.3 %

3,500

3.3 %

+ 70

－

+ 2.0 %

Community Pharmacy
Network Segment※1

5,703

5.7 %

5,733

5.7 %

+ 29

－

+ 0.5 %

Other 3 Segments※2

(20)

－

167

2.7 %

+ 188

－

－

(2,253)－(2,400)

－

(147)

－

－

Segment profit

Adjustments*1 Pharmaceutical Network Business, Dispensing Pharmacy Business, Manufacture and Market Pharmaceuticals Business*2 Leasing and Facility related Segment, Meal Catering Segment, Home Visit Nursing Segment
MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved27Interim dividend■ The projected dividend for FY3/22 is 10 yen per share(interim and year-end dividend of 5 yen each per share)[Annual dividend per share](Unit: yen)
10

《Reference》① FY3/22 interim dividend
Base date : September 30, 2021
P a y m e n t : D e c e m b e r 1 3 , 2021
Dividend per share: 5 yen

8
5

5

5

5

Year-end
6

10
4

5
2

5

5

5

FY3/21(Actual)FY3/22(prospects)② Shareholder return index
Projected year-end dividend per share: 10 yen
Projected payout ratio: 16.8%

Interim0
FY3/19(Actual)FY3/20(Actual)

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved28

MEDICAL SYSTEM NETWORK Co., Ltd.
https://www.msnw.co.jp/

MSNW

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Corporate Strategy Department
E-mail︓ info@msnw.co.jp

MEDICAL SYSTEM NETWORK Co., Ltd. All Rights Reserved