mascot character
ＥＭＭＡResults of Operations
for financial year ended March 31 2020

EM SYSTEMS CO., LTD.
(TSE 1st Section: 4820)ＥＭ ＳＹＳＴＥＭＳ
ＣＯ ．，ＬＴＤ．
These documents have been translated from Japanese originals for reference Purposes only.
In the event of any discrepancy between these translated documents and the Japanese originals, the originals shall prevail. The Company assumes
no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translations.

Company Initiatives regarding the Novel Coronavirus
We would like to express our heartfelt sympathies to all of you who are dealing first-hand with novel
coronavirus infections (Covid-19). We pray that the pandemic comes to an end as soon as possible andwe pray for your health. We would also like to express our deep respect for all of the medical-related
personnel who have been doing their best working day-and-night to prevent and treat infections.
Our company, which continues to support the healthcare (clinics and pharmacies) and long-termcare/welfare industries through our systems, is implementing the following initiatives throughout theentire EM Systems Group in order to minimize the effects on the health and safety of our customers andemployees, as well as on our business, and to continuously provide the stable system access and service
even during the officially declared State of Emergency.

Changes to Work Structure
Working from home, as a general rule.
Utilization of online meetings and telecommuting.

Sale Activities
Refraining from visiting customers in person unless responding to an emergency.
Sales activities via the Internet and telephones.

Support Activities
Closure of main telephone: Responses to inquiries via the Internet.
Shortening of Information Center hours.
Efficient responses from those working at home.

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2Contents
I.

“Business Environment / Company Initiatives ”
i.
Business Environmentii. Effects of the Novel Coronavirus and Initiativesiii. Operations for financial year ended March 31 2020

II. “Results of Operations for Financial year ended March 31 2020”i.
Highlights of Financial results
ii. Changes in consolidate results by fiscal yeariii. Balance Sheet Summary
iv. By Segment Sales/Operating Profitsv. By Segment Sales Breakdown
vi. IT Systems for Pharmacies（Quarterly Sales /Moving Annual Total）
vii. IT Systems for Clinics（Quarterly Sales /Moving Annual Total ）viii. Forecast for the fiscal year ending December 2020
ix. Market Share and Number of Customers
x. Shareholder returns
III. New Administrative System

Supporting Date

Shared Information System Foundation

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Ⅰ. ⅰ. Market environment
Pharmacies
 There has been a reduction in the number of pharmacy visits and a reduction in the number of prescription slips due toprescriptions issued for longer periods of time as a result of the novel coronavirus.
 There has been an increase in medication deliveries and in remote provision of medication administration guidance in
response to the novel coronavirus.

 We are focusing on streamlining tasks within pharmacies. We are streamlining the acts of inputting medication records
and prescriptions.
 Influence of the April 2020 revision to medical fees: Pharmacies with a high concentration of prescriptions from specificmedical institutions, such as on-site pharmacies, pharmacies that handle a large number of prescriptions and chain
pharmacies were affected.
 Due to changes in the pharmacy business environment, various companies are rapidly conducting organizational
restructuring through M&A, etc.
 It is possible for non-pharmacists to conduct picking and packaging operations (based on pharmacist instructions).
(The General Affairs Division of the Pharmaceutical Safety and Environmental Health Bureau within the Ministry ofHealth, Labour and Welfare issued a notification to all administrative divisions dated April 2, 2019.)

Investments in automatization accompanying introduction of robotics and AI technology are proceeded.

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Ⅰ. ⅰ. Market environment
Clinics
 Some clinics have been facing that patients refrain from consulting due to the novel coronavirus pandemic.

 Some clinics are applying online medical care systems beginning from initial diagnosis (an exceptional measure) due tothe novel coronavirus pandemic.
 Rate of proliferation of electronic medical records at clinics: Just over 40%⇒Most newly opened businesses adopt an electronic medical record system, and a cloud-based electronic medical
record system is also under consideration.

Long-term care/welfare The market is growing due to a decrease in the number of hospital beds and an increase in the number of new facilities
accompanying the aging of the population.
⇒Introduction of lucrative mechanisms: Investment in robotics and systems

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 There has been a short-term increase in the number of temporary closings of visiting care facilities and short-term-stayfacilities due to the spread of the novel coronavirus.
 Increase in large-scale chain welfare facilities
 There is an increase in demand for long-term care recording.

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Ⅰ. ⅱ. Effects of the Novel Coronavirus and Initiatives【Assumed negative effects of the novel coronavirus】
 A reduction in face-to-face business activities even though most client business are not subject to the government
request for business closure.

 the review of equipment installations and the timing of the commencement of business operations at businesses
scheduled to open for the first time.

 A reduction in the number of face-to-face PR opportunities for each product due to postponements of academic
conferences, exhibitions, and business meetings.

Furtherstrengthening【 Initiatives for the further growth 】
 We are reorganizing toward a business style that is unaffected by activity environment.
 We are engaging in online customer-targeted experience plans and marketing activities that can make up for thedecrease in PR opportunities.
 We provide customer-targeted tools for use in configuring systems as well as for use in comparison and evaluation.

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Ⅰ. ⅲ. Operations for financial year ended March 31 2020

Marketing We have been conducting marketing activities that make use of “Medpeer,” a community site for physicians.
 We conduct online marketing that utilizes “Care Management Online,” a dedicated site for care managers.
 We conduct non-face-to-face sales activities that utilize online demonstrations, downloads of trial versions,
online meetings, etc.

 We enable customers to personally conduct estimates and configuration examinations through “MAPs DIRECT,”a B-to-B e-commerce site.

オンラインデモンストレーション

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Ⅰ. ⅲ. Operations for financial year ended March 31 2020

Operating We built a sales structure exclusively for nursing care chains, and we have been activelyexpanding our business to include chain offices in the nursing care/ welfare market by making
use of M-Win Soft Co., Ltd. assets.
 Sales promotion of new headquarters systems. Compatibility with the systems of othercompanies.
 We expanded sales channels in our OEM and agency businesses.
 Application of M&A
 We have been conducting activities in collaboration with CSI Co., Ltd. aimed at enabling
cooperation between hospitals and pharmacies.
 Organizational restructuring – Enhancement of non-face-to-face business We are expanding our partnership with Biznet Corporation accompanying breakaway
from direct hardware sales.

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Ⅰ. ⅲ. Operations for financial year ended March 31 2020
Development activities
 We are strengthening product competitiveness through expanding the functions of the already-released MAPs for
CLINIC and MAPs for PHARMACY.
 We are developing and commence shipping MAPs for NURSING CARE, a nursing care/welfare system.
 We are contributing to standardizing the industry and reducing costs through the OEM provision of shared engine:
Expanding to other companies in the same field We are enabling coordination with the MAPs series as well as with the systems of other companies, in addition toexisting systems, using new headquarters systems for pharmacies.

Social contribution activities
 Sponsor participation in the Kimiko Date x YONEX PROJECT We contribution to the “Artificial Intelligence in Healthcare” course at the University of Tokyo.
 We cooperated with Ueda Pharmacist Association in “Creation of mechanisms to improve guidance based on
information sharing and pharmaceutical knowledge from pharmacists,” a model business under consideration by
the Ministry of Health, Labour and Welfare.

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Ⅱ. ⅰ. Financial Highlights for March 31 2020
consolidated results of March 31 2020

Topics for March 31 2020
□ Sales and administration expenses increased accompanying expansion of our system businesses targeting nursing care service providers.
□ This contributed to sales due to a last-minute surge in demand for hardware replacement accompanying the termination of support forWindows 7.

□ Subscription-based sales have increased bullishly. (Pharmacy and clinics, Long-term care/welfare segments)□ A reduction in gross profit due to an increase in base costs accompanying the transfer of hardware maintenance responsibilities tomanufacturers.

□ We commenced shipping 【MAPs for CLINIC】 in October 2019, 【MAPs for PHARMACY】 in February 2020, from Osaka and Tokyo and
we are in turn expanding operations into other administrative districts.

□ We commenced depreciation accompanying MAPs shipment.
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Ⅱ. ⅱ. Changes in consolidate results by fiscal year
Flow-Based

Fully Stock-Based

Partially Stock-Based(Millions of yen)

Sales
7,827

7,315

9,573

11,395

11,288

8,776

9,818

8,202

9,013

10,257

11,36911,257

13,19913,676

13,953

13,133

14,023

10,092

2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.12

Operating Profits

The 2020 fiscal year will be a 9-month accounting period due
to change in the fiscal year end(Millions of yen)

622

455

1,317

1,740

1,010

-1,317-721

86

835

1,209

1,672

1,232

1,861

2,597

3,063

2,622

1,583

1,127

2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.12

Profit Margin
ratuo

19.0%
14.7%

15.3%

22.0%
20.0%
11.3%

11.2%

2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.12-15.0%

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Ⅱ. ⅲ. Balance Sheet Summary （Units: Millions of yen）

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Ⅱ. ⅳ. By Segment Sales/Operating Profits※In our nursing care system business, we acquired the former Janis Corporation from February 2019, and we are turning M-Win Soft Co., Ltd. into a subsidiary.
※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.

IT Systems for Pharmacies･･････････････････Income and profits have fallen due to decreases in initial sales and gross profits
increased in base costs accompanying the transfer of hardware maintenanceresponsibilities to manufacturers.
IT Systems for Clinics･･･････････････････････The number of MRN customers has steadily increased. Accompanying this,system usage fee sales have also smoothly increased.
IT Systems for long-term care/welfare･･････ Sales have greatly increased accompanying expansion of our system
Businesses targeting nursing care service providers.
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Ⅱ. ⅴ. By Segment Sales Breakdown* Net sales by segment are the amounts before elimination of inter-segment transactions.

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Ⅱ. ⅵ. IT Systems for Pharmacies
Quarterly Sales （Units: Millions of yen）

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Ⅱ. ⅵ. IT Systems for Pharmacies
Moving Annual Total（Units: Millions of yen）

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Ⅱ. ⅶ. IT Systems for Clinics
Quarterly Sales （Units: Millions of yen）

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Ⅱ. ⅶ. IT Systems for Clinics
Moving Annual Total（Units: Millions of yen）

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Ⅱ. ⅷ. Forecast for the fiscal year ending December 2020
（Millions of yen）

※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.
※ The Company plans to change the fiscal year end from March 31 to December 31 starting from the 2020 fiscal year.
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Ⅱ. iX. Market Share and Number of Customers
IT Systems for Pharmacies

IT Systems for Clinics

IT Systems forlong-term care/welfare

Market share32.5％

Market share 3.1％

Market share 5.5％

Number of customers ：16,233Target population：50,000
Mid-term goals：25,000

Number of customers ： 2,810
Target population：90,000
Mid-term goals：10,000

Number of customers ： 13,752
Target population：250,000
Mid-term goals： 10,000*1 The number of customers indicates the number of pharmacies and clinics that purchased our system products.
*2 The above target populations represent the number of pharmacies and clinics that we considered as our potential customers, and differ from theactual number of registered pharmacies and clinics.
(as of March 31 , 2020)*3 Mid-term goals are as announced in May 2018.

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Ⅱ. X. shareholder returns

Aim at a payout ratio of 30%
Introduction of a system of special benefits for shareholders(Targeting shareholders in continuous retention of one or more shares)

0*We conducted stock splits on April 1st, 2016 and March 1st, 2018 and January 1st, 2020 at a ratio of two shares per one ordinary share.
The aforementioned information assumes that each stock split occurred at the beginning of March 2013.
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21

Ⅲ. New Administrative System (Transfer of Representative Director)
Seizing the Company’s 40th anniversary as an opportunity, we are transferring our representative and reforming ouradministrative system in order to challenge ourselves to become even more monolithic in providing solutions that
contribute to the health of the nation’s citizens.
Moving forward, under the leadership of Hiromasa Kunimitsu, we aim to further increase our corporate value by
challenging ourselves into a new stage in order to realize the Company vision of “contributing to improving the level ofhealth among the nation’s citizens” while continuing to uphold the principles of our founder. Kozo Kunimitsu will continue
to serve as director and supreme advisor, and Kenji Oishi will serve as director and chairman.

【Company Policy】
Our company, which is vital to the world, contributes to improving the level ofhealth among the nation’s citizens through application of advanced technologies.
We aim to be a company that is capable of providing happiness through work.

Appointment scheduled for June 16, 2020
President&Representative Director
Hiromasa Kunimitsu

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Supporting Date . Shared Information System Foundation

Specialized Functions(Clinics & Pharmacies）

Pharmacy App

Clinic App(Medical Records)(Medication History, HQFunctions)

Nursing care/welfare App
CommonFunctions（Clinics & Pharmacies）

SpecializedFunctions（Nursing care/welfare ）Medical Exam. Hearing/ Prescription Bags /Pharmaceutical Info. / Inventory

Common Master/Contents(Medication/Prescription Check/Meal Recipes)

Counter Accounting/Receipt Billing（Medical Insurance, Nursing Insurance and Independent Local Aidfor Medical Expenses）

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CommonMasterCommonEngine23

Contact:
EM SYSTEMS CO., LTD.
IR Section, Corporate Planning Department
Shin-Osaka Brick Bldg.
1-6-1 Miyahara, Yodogawa-ku,
Osaka 532-0003, JapanDue to the spread of novel coronavirus infections,employees are to work from home as a general rule until the end of May.
We apologize for the inconvenience, but we are responding toinquiries by having employees working at home get back in touch with.
Thank you in advance for your cooperation.

The contents in this presentation materials are based on assumptions judged to be valid and information available tothe Company’s management at the time they were prepared. The Company assumes no obligation to update or revise
any information, whether as a result of new information, future events or otherwise.
As forecasts contained herein are based on assumptions of numerous uncertain factors, actual results may differ
significantly from these forecasts for a number of reasons.