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 Three Months Ended March 31, 2024
[Japanese GAAP]May 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 filing quarterly securities report:
Scheduled date for commencing dividend payments: —May 14, 2024
Preparation of supplementary financial results briefing materials: No
Holding of financial results briefing: No(Amounts of less than one million yen are truncated.)

1. Consolidated financial results for the three months ended March 31, 2024 (January 1, 2024 to March 31, 2024)(1) Consolidated operating results(% indicates year-over-year change)
Net salesMillion yen

Three months ended
2,667
March 31, 2024
Three months ended
2,526
March 31, 2023
(Note) Comprehensive income:Operating profit

Profit attributable toowners of parent

Ordinary profit%

Million yen%

Million yen%

Million yen%

5.6

545

(23.7)

563(21.2)

310(32.1)

13.7

715

(14.7)

715(14.7)

457(18.0)

Three months ended March 31, 2024:
Three months ended March 31, 2023:

Basic earnings
per share

354 million yen
452 million yen[(21.6)%][7.2%]

Diluted earnings
per share

Yen

Yen

Three months ended
6.98—
March 31, 2024
Three months ended
10.27—
March 31, 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 March 31, 2024
As of December 31, 2023
(Reference) Equity:

13,505
14,168
As of March 31, 2024:

Net assets
Million yen

Equity ratio

Net assets per share%

Yen

11,201
81.7
11,501
79.3
11,033 million yen
As of December 31, 2023:

247.65252.23
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

—
—

12.00

12.00

Fiscal year ending
December 31, 2024
0.00
(forecast)(Note) Revision to the most recently announced dividend forecast: None

TotalYen

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) Changes in significant subsidiaries during the current period (changes in specified subsidiaries resulting in the changes
in the scope of consolidation): None
(2) Accounting treatments adopted specially for the preparation of quarterly 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 of commonstock during the period(Note)As of March 31, 2024

46,872,000 shares

As of December 31, 2023

46,872,000 shares

As of March 31, 2024

2,320,702 shares

As of December 31, 2023

2,320,702 shares

Three months ended
March 31, 2024

44,551,298 shares

Three months ended
March 31, 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 of common stock during the period.

* 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. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheets(Thousand yen)Previous fiscal year
(As of December 31, 2023)

Three months under review(As of March 31, 2024)

AssetsCurrent assets
Cash and deposits

8,857,120

7,976,989

Accounts receivable - trade, and contract assets

2,177,913

2,062,112

Electronically recorded monetary claims - operating

308,408

210,732

Inventories

34,11233,564

Prepaid expenses

222,540

227,215

Other

171,812

137,509(5,656)(5,656)

11,766,250

10,642,467

214,647

203,349

1,099,107

947,889

37,17468,551

Total intangible assets

1,136,281

1,016,441

Investments and other assets

1,051,602

1,643,175

Total non-current assets

2,402,531

2,862,966

14,168,782

13,505,434

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)

Three months under review(As of March 31, 2024)

Liabilities
Current liabilities
Accounts payable – trade179,364

Current portion of long-term borrowings

26,33024,290

Income taxes payable

411,542

164,200

Advances received

60,57073,572

Provision for bonuses

8,456

12,685

Provision for point card certificates

943,444935,225

Other818,676

731,0512,448,385

2,087,102

Long-term borrowings

71,092

66,238Retirement benefit liability

15,027

16,529Asset retirement obligations
Provision for share awards for directors (and otherofficers)
Provision for share awards for employees

51,797

51,82059,59865,016

8,265－

Total current liabilities

146,078

Non-current liabilities

Other

13,10017,005

Total non-current liabilities

218,879

216,6092,667,265

2,303,712

Share capital

2,405,636

2,405,636

Capital surplus

3,073,797

3,073,797

Retained earnings

6,486,6616,258,272

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

11,265,340

11,036,952

Valuation difference on available-for-sale securities(28,292)(3,775)

Total accumulated other comprehensive income(28,292)(3,775)

Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Share acquisition rights

00

Non-controlling interests

264,467

168,543

11,501,516

11,201,721

14,168,782

13,505,434

Total net assets
Total liabilities and net assets2(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(For the three months ended March 31)

Net sales

Previous three month period(January 1, 2023 toMarch 31, 2023)
2,526,715(Thousand yen)Three months under review(January 1, 2024 toMarch 31, 2024)
2,667,149

Cost of sales

934,253

1,087,003

Gross profit

1,592,461

1,580,145

Selling, general and administrative expenses

877,401

1,034,894

Operating profit

715,060

545,251

588

1,213

－11,055

194

8,442

Non-operating income
Interest income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Miscellaneous income

1,202

713

Total non-operating income

1,984

21,423261

161

Share issuance costs

0－

Loss on investments in investment partnerships

95

83

Consumption tax adjustments

－

2,211

Miscellaneous loss

994

591

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit

1,352

3,047

715,693563,627－

48,018Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses－48,018

Profit before income taxes

715,693515,608

Income taxes – current

221,113

148,458

Income taxes – deferred

30,49736,731

Total income taxes

251,610

185,190

Profit464,082

330,418

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

3

6,389

19,583457,693

310,835

(Quarterly consolidated statements of comprehensive income)(For the three months ended March 31)

ProfitPrevious three month period(January 1, 2023 toMarch 31, 2023)
464,082(Thousand yen)Three months under review(January 1, 2024 toMarch 31, 2024)
330,418

Other comprehensive income(11,188)

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

24,516(11,188)

24,516452,894354,935

446,504

335,351

6,389

19,583Comprehensive income attributable to:
Owners of parent
Non-controlling interests4