Note: This document is a translation of the original Japanese version and provided for reference purposes only. In theevent of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Three Months Ended June 30, 2024 (Japanese GAAP)
August 7, 2024

Company name:
Stock code:

Medical System Network Co., Ltd.
4350

Listing: Tokyo Stock Exchange
URL: https://www.msnw.co.jp/eng/

Representative:
Inao Tajiri, President and Representative Director
Contact:
Eiji Hirashima, Executive Officer, Director of Finance and DirectorTel:+81-11-613-7750
Scheduled date for dividend payment:－
Preparation of supplemental explanatory materials:
Yes
Results briefing to be held:
None(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended June 30, 2024
(April 1 to June 30, 2024)(1) Consolidated operating results
Net sales
Three months ended
June 30, 2024
Three months ended
June 30, 2023

EBITDA(Percentages indicate YoY change)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Million yen%

Million yen% Million yen

29,419

6.4

1,278

6.3

27,656

5.2

1,202

13.3

%

Million yen%

Million yen

%

468

3.7

468

14.2

170

15.1

451

29.4

410

4.6

148

62.8

Note: Comprehensive income for the three months ended June 30, 2024 was 189 million yen (16.5% YoY), and comprehensive income for thethree months ended June 30, 2023 was 162 million yen ( (57.5)YoY).
Note: EBITDA = (operating profit + depreciation + goodwill amortization)

Earnings per share
Three months ended
June 30, 2024
Three months ended
June 30, 2023

Diluted earnings
per share

Yen

Yen

5.85

－

4.92

－

Note: Please refer to “Appropriate use of earnings forecast and other special notes 2” for details of earnings per share calculations.

(2) Consolidated financial position
Total assets
As ofJune 30, 2024
As ofMarch 31, 2023

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

67,77915,23022.4

519.25

68,14915,21922.3

519.06

Reference: Shareholders’ equity amounted to 15,176 million yen as of June 30, 2024 and 15,171 million as of March 31, 2024.
Note: Please refer to “Appropriate use of earnings forecast and other special notes 2” for details of shareholders’ equity, equity ratio, and net
assets per share calculations.

2. Dividends
Dividends per share
End of Q1
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
Fiscal year ending
March 31, 2025 (forecast)End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

－

6.00

－

6.00

12.00

6.00

－

6.00

12.00

－

Note: Revisions to the Company’s most recently announced dividend forecast: No

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2025
(April 1, 2024 to March 31, 2025)
Net sales

EBITDA

Operating profit(Percentages indicate YoY change)
Profit attributable
Earnings
Ordinary profit
to owners ofper share
parentMillion yen%

Million yen%

Million yen%

Million yen%

Million yen%

Yen

First half

59,500

5.4

3,260

28.5

1,600

(6.6)

1,590

(6.1)

785

(8.9)

26.86

Full-year

122,000

5.8

7,450

6.5

4,000

4.4

3,950

3.3

2,000

7.5

68.43

Note: Revisions to the Company’s most recently announced consolidated earnings forecast: No
Note: EBITDA = (operating profit + depreciation + goodwill amortization)

*Notes(1) Significant changes in the scope of consolidation during the period: Yes
Newly added:
2 companies (MEDI LOGI NET Co., Ltd. ,Takeuchi Pharmacy Ltd.)
Excluded:None(2) Distinctive accounting methods applied when preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and retrospective restatements
1. Accounting policy changes due to accounting standard revisions, etc.:Yes
2. Other accounting policy changes:
None
3. Changes in accounting estimates:
None
4. Retrospective restatements:
None(Note) For details, please see “2. Quarterly Consolidated Financial Statements and Primary Notes (3) Notes to Quarterly
Consolidated Financial Statements (Notes to accounting policy changes)” on pg. 8 of the attached materials.
(4) Number of shares outstanding (common stock)
1. Shares outstanding(including treasury
As of June 30, 2024
stock)

30,642,600

As of March 31, 2024

30,642,600

2. Treasury shares
outstanding

As of June 30, 2024

1,414,055

As of March 31, 2024

1,414,055

3. Period-average shares
outstanding (cumulative
quarterly figures)

Three months ended
June 30, 2024

29,228,545

Three months ended
June 30, 2023

30,178,545

Note: Please refer to “Appropriate use of earnings forecast and other special notes 2” for details of calculation method regarding period-end
treasury stock numbers and period-average shares outstanding (cumulative quarterly figures).

*Review by a certified public accountant or auditing firm of the attached quarterly consolidated financial statements: None
*Appropriate use of earnings forecast and other special notes
1. The earnings forecasts and other forward-looking statements contained in this document are based on information
currently available to the Company, and certain assumptions it considers reasonable, but are not intended to be a promisethat the Company will achieve. Actual results may vary materially from forecasts due to a variety of factors. For mattersconcerning earnings forecasts, please refer to page 3 of the attached materials “1. Qualitative Information on Quarterly
Financial Performance (3) Explanation of Consolidated Earnings Forecasts and Other Projections.”
2. In the quarterly consolidated balance sheets, the Company's shares held as trust assets of the Board Benefit Trust (BBT)
are recorded as treasury stock. They are included in treasury stock in calculations of earnings per share, equity ratio, net
assets per share, shareholders’ equity, period-end treasury stock numbers, and period-average shares outstanding(cumulative quarterly figures).

Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

Accompanying Materials – Contents
1. Qualitative Information on Quarterly Financial Performance .................................................. 2(1) Explanation of Operating Results ........................................................................ 2(2) Overview of Financial Position ........................................................................... 3(3) Explanation of Consolidated Earnings Forecasts and Other Projections ....................................... 3
2. Quarterly Consolidated Financial Statements and Primary Notes.............................................. 4(1) Consolidated Balance Sheet ............................................................................ 4(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ..................... 6(3) Notes to Quarterly Consolidated Financial Statements ...................................................... 8(Notes to going concern assumptions) ..................................................................... 8(Notes in the event of significant changes in shareholders’ equity) ............................................. 8(Notes to accounting policy changes) ...................................................................... 8(Notes to segment information, etc.) ....................................................................... 9(Notes to the statement of cash flows) ..................................................................... 91

Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

1. Qualitative Information on Quarterly Financial Performance(1) Explanation of Operating Results
In the three months ended June 30, 2024, the number of prescriptions filled increased in the Community Pharmacy
Business, despite an absence of boost from the outbreak of multiple respiratory infections seen in the previous fiscal
year, due to contributions from new pharmacies opened in the previous fiscal year and those acquired through M&A,
digitalization initiatives including the use of the Tsunagaru Pharmacy official LINE account to send and receive
prescriptions, and post-dispensing patient follow-up. In the Pharmaceutical Network Business, the number ofpharmaceutical network affiliates exceeded 10,000, backed by a steady increase in new network affiliates. As a result,net sales amounted to 29,419 million yen (+6.4% YoY), operating profit 468 million yen (+3.7% YoY), ordinary profit 468
million yen (+14.2% YoY), and profit attributable to owners of parent 170 million yen (+15.1% YoY).
Results by segment were as follows. Net sales for individual segments include intersegment sales.
1) Community Pharmacy Network Segment
In the Community Pharmacy Network Segment, we are committed to providing value throughout the entire
pharmaceutical supply chain. To this end, we operate community pharmacies, support pharmacy management
through our pharmaceutical networks, manufacture and market pharmaceuticals, and support pharmacies transition
into family pharmacies using the Tsunagaru Pharmacy service.
In the Community Pharmacy Business, the number of prescriptions filled increased despite the absence of boost
from multiple respiratory infection outbreaks seen in the previous fiscal year, owing to contributions from newpharmacies opened in the previous fiscal year and those acquired through M&A, digitalization initiatives including theuse of Tsunagaru Pharmacy official LINE account to send and receive prescriptions, and post-dispensing patient
follow-up. In the three months ended June 30, 2024, we opened six community pharmacies, including four in medicalmalls, and acquired one community pharmacy through M&A, while closing or transferring six. As of June 30, 2024,
we had 451 community pharmacies, one care plan center, and nine drug/cosmetics stores.
In the Pharmaceutical Network Business, new network affiliates steadily increased thanks to our efforts to expand
services, including a service for sharing pharmaceutical inventory information on a regional basis and various training
programs. As of June 30, 2024, pharmaceutical network affiliates totaled 10,178, up 422 from March 31, 2024,
consisting of 451 Group pharmacies and 9,727 general affiliates.
In the Manufacture and Market Pharmaceutical Business, as of June 30, 2024, the Group offered 113 products
representing 49 different active pharmaceutical ingredients (APIs) (shipments of six products representing three APIs
were under adjustment) In the three months ended June 30, 2024, new partner pharmacies steadily increased, withthe total number of partner pharmacies reaching 5,171 as of June 30, 2024, up 1,529 year-on-year.
In the Digital Shift Business, the number of pharmacies that have adopted the Group’s services firmly grew against
a backdrop of increased needs to respond to the 2024 Dispensing Fee Revisions, totaling 5,217 as of June 2024 (up535 from March 31, 2024).
As a result, segment sales for the three months ended June 30, 2024 were 28,029 million yen (+6.3% YoY) andoperating profit was 1,061 million yen (-1.5% YoY). The decline in profit was because we included preparatory
expenses for the Distribution Business slated to start operations in October in this segment.
2) Leasing and Facility-related Segment
In the Leasing and Facility-related Segment, sales amounted to 942 million yen (+17.8% YoY) and operating profit
was 56 million yen (+145.5% YoY), reflecting an increase in orders for construction services and the revision ofadvertising expenses for the Wisteria serviced residence for the elderly.
As of June 30, 2024, Wisteria Senri-Chuo had an occupancy rate of 58.5% (48 out of 82 units occupied), andWisteria Minami-Ichijo an occupancy rate of 75.9% (88 out of 116 units occupied). The overall occupancy rate at thefive serviced residences for the elderly stood at 82.3%.The Group will focus on meeting the changing needs ofresidents and cultivate new sales routes, and continue to conduct aggressive sales activities.

2Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

3) Meal Catering Segment
In the Meal Catering Segment, sales decreased year-on-year due to a decline in the number of facility users, but
the operating loss narrowed owing to improved gross profit margin, attributed to the revision of contract unit price inthe previous fiscal year. As a result, segment sales were 586 million yen (-0.7% YoY), and the operating loss was 2
million yen (loss of 14 million yen in the same period of the previous fiscal year).
4) Other Segment
In the Other Segment, the Group provides home-visit nursing care services. Segment sales amounted to 85 million
yen (+9.1% YoY), and the operating loss narrowed to 7 million yen (from a loss of 8 million yen in the same period of
the previous fiscal year), due in part to an increase in the number of home visits.

(2) Overview of Financial Position
As of June 30, 2024, total assets amounted to 67,779 million yen, a decrease of 370 million yen from March 31, 2024.
Current assets were 20,016 million yen, down 756 million yen from March 31, 2024. This was largely due to a decline
in cash and deposits, despite an increase in merchandise.
Non-current assets were 47,762 million yen, up 386 million yen from March 31, 2024. This mainly reflected increases
in buildings and structures, net and guarantee deposits, offsetting decreases in goodwill and deferred tax assets.
Total liabilities were 52,548 million yen, down 381 million yen from March 31, 2024. Current liabilities were 23,918
million yen, up 704 million yen from March 31, 2024, primarily due to an increase in accounts payable – trade, despitea decrease in income taxes payable. Non-current liabilities were 28,630 million yen, down 1,086 million yen from March
31, 2024, mainly reflecting a decrease in long-term borrowings.
Net assets totaled 15,230 million yen, up 11 million yen from March 31, 2024.

(3) Explanation of Consolidated Earnings Forecasts and Other Projections
The Company has made no changes to its first half and full-year earnings forecasts for the financial year ending
March 31, 2025, which were announced on May 10, 2024.

3

Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheet
Fiscal year ended
March 31, 2024
(as of March 31, 2024)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Unearned revenue from sale of accounts
receivable
Purchased receivables - dispensing fees
Merchandise
Raw materials
Work in process
Supplies
Other
Allowance for doubtful accounts
Total current assets(Millions of yen)Three months ended
June 30, 2024
(as of June 30, 2024)

8,273
4,239

6,723
3,977

1,078

1,082

423
5,404
16
38
81
1,231
(14)

418
6,234
15
35
92
1,452
(14)

20,77320,016

12,996
9,290
325
5,723

13,282
9,296
314
5,856

28,33628,751

10,613594
73

10,463603
71

11,281

11,139

184
3,419
3,339
835
(19)

191
3,660
3,160
879
(19)

7,759

7,872

47,37647,762

68,14967,779Non-current assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
Other
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

(Millions of yen)Three months ended
June 30, 2024
(as of June 30, 2024)

Fiscal year ended
March 31, 2024
(as of March 31, 2024)
Liabilities
Current liabilities
Accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors(and other officers)
Provision for share awards for directors (andother officers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

5

10,935
588
5,122
999
1,689

12,304
1,421
4,856
114
931

86

93

3,791

4,195

23,21323,91818,30917,189

691

697

278

273

4,534
5,902

4,630
5,838

29,71628,63052,93052,5482,128
937
13,100
(882)

2,128
946
13,094(891)

15,284

15,277

19

24

2
(134)

3
(127)

(112)

(100)

47

53

15,21915,23068,14967,779Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales

Three months ended
June 30, 2023
(from April 1, 2023
to June 30, 2023)
27,656
16,223(Millions of yen)Three months ended
June 30, 2024
(from April 1, 2024
to June 30, 2024)
29,41917,145Gross profit

11,433

12,274

Selling, general and administrative expenses

10,981

11,806

Operating profit

451

468

Non-operating income
Interest and dividend income
Outsourcing service income
Rental income from facilities
Subsidy income
Miscellaneous income

2
16
30
6
18

3
16
32
20
20

Total non-operating income

74

93

Loss on sale of receivables
Interest expenses
Miscellaneous losses

14
93
7

20
65
8

Total non-operating expenses

115

93

Ordinary profit

410

468

Extraordinary income
Gain on sale of non-current assets
Gain on sale of businesses

－
－

0
31

－

31

0
1
0

4
3
2

Non-operating expenses

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on store closings
Other

2

10

Profit before income taxes

Total extraordinary losses

407

488

Income taxes - current
Income taxes - deferred

102
154

107
204

Total income taxes

256

311

Profit151

176

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

6

2

6

148

170

Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

Consolidated Statement of Comprehensive Income

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income

151(Millions of yen)Three months ended
June 30, 2024
(from April 1, 2024
to June 30, 2024)
176

6

4

(1)

0

6

6

11

12

Comprehensive income

162

189

(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests非

159

183

2

6

Three months ended
June 30, 2023
(from April 1, 2023
to June 30, 2023)

7

Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

(3) Notes to Quarterly Consolidated Financial Statements(Notes to going concern assumptions)None to be reported.
(Notes in the event of significant changes in shareholders’ equity)
None to be reported.
(Notes to accounting policy changes)(Application of “Accounting Standard for Current Income Taxes”)
From the beginning of the three months ended June 30, 2024, the Group has applied the “Accounting Standard for
Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022; hereafter, the “2022 Revised Accounting Standard”).
Regarding revisions related to the classification of corporate taxes (taxes on other comprehensive income), the Group
complies with the transitional measures prescribed in the proviso to Paragraph 20-3 of the 2022 Revised AccountingStandard and the proviso to Paragraph 65-2 (2) of the “Implementation Guidance on Tax Effect Accounting” (ASBJ
Guidance No. 28, October 28, 2022; hereafter, the “2022 Revised Guidance”). This change in accounting policy has no
impact on the quarterly consolidated financial statements.
Further, from the beginning of the three months under review, the Group has applied the 2022 Revised Guidance forrevisions related to the treatment in the consolidated financial statements of the gains or losses on the sale of sharesin subsidiaries, etc. resulting from intra-group transactions, where such gains or losses can be deferred for tax purposes.
This change in accounting policy has been applied retrospectively to the quarterly and full-year consolidated financial
statements for the previous fiscal year. This change, however, has no impact on the quarterly and full-year consolidated
financial statements for the previous fiscal year.

8Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Three Months Ended June 30, 2024

(Notes to segment information, etc.)
I. Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
Information on sales and profit (loss) by reporting segment(Millions of yen)Amounts on
consolidated
Adjustments
statement of(Note 1)income(Note 2)

Reporting segment
Community Leasing andFacilityPharmacy
relatedNetwork

Meal
Catering

Other

Total

Net sales
Sales to externalcustomers
Intersegment sales ortransfers

26,343

644

590

78

27,656－27,656

12

155

0

－

168

(168)

－

Total

26,356

800

590

78

27,825(168)

27,656

Segment profit (loss)

1,077

22

(14)

(8)

1,077

(626)

451

Notes: 1. The negative 626 million yen adjustment to segment profit (loss) includes 62 million yen in elimination ofintersegment transactions and 688 million yen in companywide expenses not allocated to reporting segments.
Companywide expenses mainly refer to general expenses that do not belong to reporting segments.
2. Segment profit (loss) is adjusted with operating profit (loss) in the quarterly consolidated statement of income.
II. Three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Information on sales and profit (loss) by reporting segment(Millions of yen)Amounts on
consolidated
Adjustments
statement of(Note 1)income(Note 2)

Reporting segment
Community Leasing andFacilityPharmacy
relatedNetwork

Meal
Catering

Other

Total

Net sales
Sales to externalcustomers
Intersegment sales ortransfers

28,017

731

585

85

29,419－29,419

12

211

0

－

224

(224)

－

Total

28,029

942

586

85

29,643(224)

29,419Segment profit (loss)

1,061

56

(2)

(7)

1,107

(639)

468

Notes: 1. The negative 639 million yen adjustment to segment profit (loss) includes 51 million yen in elimination ofintersegment transactions and 690 million yen in companywide expenses not allocated to reporting segments.
Companywide expenses mainly refer to general expenses that do not belong to reporting segments.
2. Segment profit (loss) is adjusted with operating profit (loss) in the quarterly consolidated statement of income.
(Notes to the statement of cash flows)
We have not prepared a consolidated statement of cash flows for the three months ended June 30, 2024. Depreciation(including amortization of intangible assets excluding goodwill) and amortization of goodwill for the said period are as follows.

Depreciation and amortization
Amortization of goodwill

Three months ended
June 30, 2023
(from April 1, 2023
to June 30, 2023)
472 Millions of yen
278 Millions of yen

9Three months ended
June 30, 2024
(from April 1, 2024
to June 30, 2024)
523 Millions of yen
286 Millions of yen