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 Nine Months Ended September 30, 2023
[Japanese GAAP]
November 13, 2023
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: —November 14, 2023
Preparation of supplementary quarterly financial results briefing materials: No
Holding of quarterly financial results briefing: No(Amounts of less than one million yen are truncated.)

1. Consolidated financial results for the nine months ended September 30, 2023 (January 1, 2023 to September 30, 2023)(1) Consolidated operating results(% indicates year-over-year change)
Net sales

Operating profit

Million yen

Nine months ended
7,271
September 30, 2023
Nine months ended
6,445
September 30, 2022
(Note) Comprehensive income:

Profit attributable toowners of parent

Ordinary profit%

Million yen%

Million yen%

Million yen%

12.8

1,736(24.1)

1,772(23.2)

1,106(28.0)

—

2,288

—

2,308—

1,537—

Nine months ended September 30, 2023:
Nine months ended September 30, 2022:

Basic earnings
per share

1,113 million yen
1,546 million yen[(28.0)%][—%]Diluted earnings
per share

Yen

Yen

Nine months ended
24.82—
September 30, 2023
Nine months ended
34.72—
September 30, 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 three months ended March 31, 2022, and the figures for the nine months ended
September 30, 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

Million yen

Million yen

As of September 30, 2023
12,811
As of December 31, 2022
13,071(Reference) Equity:
As of September 30, 2023:

10,861
10,02010,830 million yen

Equity ratio

Net assets per share%

84.5
76.4
As of December 31, 2022:

Yen

243.06224.11
9,987 million yen

2. Dividends
First quarter-end

Second quarter-end

Annual dividends
Third quarter-end

Yen

Yen

Yen

Yen

Yen—6.00

6.00

6.00

6.00

Fiscal year ended—0.00
December 31, 2022
Fiscal year ending—
0.00
December 31, 2023
Fiscal year ending
December 31, 2023
(forecast)(Note) Revision to the most recently announced dividend forecast: None

Fiscal year-endTotal—

3. Consolidated financial results forecast for the fiscal year ending December 31, 2023 (January 1, 2023 to December 31, 2023)
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
11,00017.9
3,0005.2
3,000(Note) Revision to the most recently announced financial results forecast: None%

Million yen%

Yen

3.7

2,000

8.3

44.88

* 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: Yes
2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:
None4) Retrospective restatements:
None(Note)

For details, please see “2. Consolidated financial statements and principal notes (3) Notes to consolidated financialstatements (Changes in accounting policies)” on page 7 of the Japanese version of this attachment.

(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 period3) Average number of shares of commonstock during the period(Note)

As of September 30, 2023

46,872,000 shares

As of December 31, 2022

46,872,000 shares

As of September 30, 2023

2,312,002 shares

As of December 31, 2022

2,307,702 shares

Nine months ended
September 30, 2023

44,563,810 shares

Nine months ended
September 30, 2022

44,274,425 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.

* These quarterly financial results are not subject to quarterly review 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.2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheets(Thousand yen)Previous fiscal year
(As of December 31, 2022)

Nine months under review(As of September 30, 2023)

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

7,845,831

8,684,726

2,442,641

1,611,490

196,647

150,568

Inventories

27,05337,592

Prepaid expenses

237,163

208,848

Other

91,73788,966

10,841,074

10,782,193

215,608218,168

1,006,104

878,991

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total non-current assets
Total assets

152,282

42,143

1,058,386

921,134

956,326

889,5972,230,322

2,028,900

13,071,397

12,811,093

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

Nine months under review(As of September 30, 2023)

Liabilities
Current liabilities
Accounts payable – trade157,634

Current portion of long-term borrowings

23,43130,470

Income taxes payable

569,423

112,441

Advances received

35,83033,250

Provision for bonuses

8,072

12,851

Provision for bonuses for directors (and other officers)

135,871－

Provision for point card certificates

910,711

937,952－

1,642

Asset retirement obligations

94,770981,354

488,0222,822,329

1,711,402

107,051

93,001Retirement benefit liability

7,943

14,471

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

50,12848,52137,92654,18011,020

9,367

5,250

8,625

9,705

9,902

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

229,023

238,068

3,051,353

1,949,470

Share capital

2,405,636

2,405,636

Capital surplus

3,072,443

3,073,619

Retained earnings

5,245,727

6,082,226

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

10,023,053

10,860,727

Valuation difference on available-for-sale securities(35,904)(29,891)

Total accumulated other comprehensive income(35,904)(29,891)

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

Total shareholders’ equity
Accumulated other comprehensive income

Share acquisition rights

00

Non-controlling interests

32,89439,785

10,020,043

10,861,622

13,071,397

12,811,093

Total net assets
Total liabilities and net assets2(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(For the nine months ended September 30)

Net sales

Previous nine month period(January 1, 2022 toSeptember 30, 2022)
6,445,420(Thousand yen)
Nine months under review(January 1, 2023 to
September 30, 2023)
7,271,166

Cost of sales

1,991,049

2,714,025

Gross profit

4,454,370

4,557,141

Selling, general and administrative expenses

2,165,972

2,820,919

Operating profit

2,288,398

1,736,221

565

2,325

Dividend income
Share of profit of entities accounted for using equity
methodDividend income of insurance

8,178

5,969

–

16,464–2,255

Foreign exchange gains

25,880

11,636

Miscellaneous income

1,006

4,152

Total non-operating income

35,63142,804

Interest expenses

508527

Share issuance costs

2,8450Loss on investments in investment partnerships

2,41549

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

9,571

97

–

4,396

–

1,024

Total non-operating expenses

15,3406,095

2,308,688

1,772,930

Gain on sale of shares of subsidiaries–

12,876

Total extraordinary income–

12,876–35,000Non-operating income
Interest income

Non-operating expenses

Ordinary profit
Extraordinary incomeExtraordinary losses
Loss on valuation of investment securities
Total extraordinary losses–

35,000

Profit before income taxes

2,308,688

1,750,806

Income taxes – current

752,015

616,438

Income taxes – deferred

13,072

27,112

Total income taxes

765,088643,550

1,543,600

1,107,255

6,334

1,067

1,537,266

1,106,188

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

3

(Quarterly consolidated statements of comprehensive income)(For the nine months ended September 30)

ProfitPrevious nine month period(January 1, 2022 toSeptember 30, 2022)
1,543,600(Thousand yen)
Nine months under review(January 1, 2023 to
September 30, 2023)
1,107,255

Other comprehensive income
2,996

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

6,012

2,996

6,012

1,546,597

1,113,268

1,540,263

1,112,201

6,334

1,067

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