mascot character
ＥＭＭＡ

Results of Operations for
December 2021,3 rd Quarter

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.

Contents
I.

“Business Environment / Company Initiatives ”
i.
Business Environment
ii. Company Initiatives

II. “Results of Operations for December 2021, 3 rd Quarteri.
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. IT Systems for Long-term care（Quarterly Sales /Moving Annual Total ）ix. Forecast for the fiscal year ending December 2021
x. Market Share and Number of Customers
xi. Shareholder returns

Supporting DateＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

Shared Information System Foundation(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

2

Introduction
Notice Concerning Application for listing of New Market
Category “Prime Market”
We are pleased to announce that, on July 9, 2021, the Company received its “Primary Judgment Results
Regarding Compliance with Listing Maintenance Criteria in a New Market Category” from Tokyo Stock Exchange,
Inc. (hereinafter referred to as “the TSE”), confirming that it meets the listing maintenance criteria for the new“Prime Market” category.
Based on this result, the board of directors held on September 9 decided that the Company will apply to belisted in the Prime Market.
Going forward, we will proceed with the prescribed procedure for applying to be listed in the new market
category according to the schedule set by the TSE.

「July 13, 2021 Public document」

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

3

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.
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.

Working Environments

Sale Activities

Utilization of staggered working hours, telecommuting, online meetings and mobile working, as
well as creation of office environments that avoid the three Cs.
Installation of sneeze guards at all seats, mask wearing, and thorough disinfection practices, etc.
Implementation of work style reforms that enable employees to work without coming to the office.
Sales activities via the Internet and telephones.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

4

Ⅰ. ⅰ. Market environment
Initiatives

Clinics■ Responses to the Post-Covid-19 Status(Promotion of online medical care, medical
consultations by appointment, transition towardcashless systems, etc.)■ Hybridization of exhibitions by academia● Transition toward cloud-based systems,
and provision of cashless services throughour subsidiary ChoQi Co., Ltd.

● Application of online demonstrations andand private companies, and transition
toward holding such exhibitions online

online business negotiation tools, and nonface-to-face sales, Exhibition at hybrid expo
(Setting up an online booth)■ Standardization of electronic medical● Participation in the government-promoted

records at medical institutions(with the goal of information sharing as government)

electronic medical record standardization
verification project5■ Transition toward electronic prescriptions,● Provision of online qualification confirmationand construction of information viewing
environments at medical institutions where
Individual Number Cards are used as
insurance certificates(Individual unitization of insurance information, andimprovement of patient convenience)ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

system(compatible with subsidy system/full operation in October.)● Enhanced medical system proposal

capabilities(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

5

Ⅰ. ⅰ. Market environment
Pharmacies

Initiatives■ Responses to the Post-Covid-19 Status● Provision of head office systems capableof coordinating with the systems of othercompanies■ Reorganization, and strong performance● Launch of "EM Analysis Support (free)"■ Hybridization of exhibitions and transition● Application of online demonstrations
and online business negotiation tools, andnon-face-to-face sales■ Transition toward electronic prescriptions,● Provision of online qualification
confirmation system(Optimization of operations within pharmacies,
promotion of online medication guidance, deliveryof medications, etc.)

in M&A drugstore industry
DX strategy development

toward holding such exhibitions online

and construction of information viewing
environments at medical institutions where
Individual Number Cards are used as
insurance certificates(Individual unitization of insurance information, andimprovement of patient convenience)ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

Release of "MAPs Option | BunseQI (paid)"(compatible with subsidy system/Full operation in October.)● Collaboration with Good Cycle System

Co., Ltd and enhanced electronic medical
history proposal capabilities(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

6

Ⅰ. ⅰ. Market environmentLong-term care/welfare■ Increase in the number of new facilities
accompanying the aging of society, andincrease in the number of large-scale chain
long-term care facilities

Initiatives● Development of MAPs for NURSING CARE

■ Responses to the Post-Covid-19 Status● Strengthening of chain store sales
proposal capabilities
Promotion of TOP coverage■ Increase in the demand for digitization● Application of online demonstrations
and online business negotiation tools
and online exhibitions, non-face-to-facesales(Provision of non-contact services, limitations on
facility usage, strengthening infection
countermeasures, etc.)

of long-term care records, and promotion of
information utilizations■ Revision of long-term care fees

● Proposals to promote systemization,and examination of medical and longterm care information sharing■ Promotion of scientific long-term care by● Efficient support and data output for LIFE
by Sukoyaka-san

April,2021

LIFE（Long-term care Information system
For Evidence）

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

7

Ⅰ. ⅱ. Company Initiatives
Marketing Activities ,Sale Activities

LongClinic Pharmacy term
care

〇

〇

〇

〇

〇

〇

〇

〇

Strengthening Web Marketing︓Implementation of SEO and SEM measures,
Application of YouTube channel, Raise awarenessApplication of electronic contracts, and estimates and configuration examinations conducted
personally by customers through “MAPs DIRECT,” an e-commerce site
Promotion of non-face-to-face sales focusing existing customers〇〇

contents

Released "MAPs for CLINIC with ORCA" linked with JMA standard receipt software ORCA

〇 Expansion of sales channels such as OEM and agency businesses

Business partnership with Good Cycle System Co., Ltd, Marketing, Online seminars,
Linkage with medication history
Linkage of a tool for online medication guidance and follow-ups during periods of administration〇〇

Launch of "EM Analysis Support (free)" ,Release of "MAPs Option | BunseQI (paid)"〇

Sales promotion of MAPs for PHARMACY by YUYAMA Co., Ltd.
Regional comprehensive care and collaboration between hospitals and pharmacies →Realization ofcollaboration between hospitals and pharmacies through cooperation with CSI Co., Ltd

〇

〇

〇

〇

〇

〇 Application of M&A

︓ClinicＣＯ.
Segment
ClinicＥＭ
ＳＹＳＴＥＭＳ, ＬＴＤ．

︓Long-termcare/Welfare
Pharmacy
︓PharmacyLong-term
careAll8 rights(C)2021 EM SYSTEMS
Co.ltd.Segment
General Affairs
Department
reserved.
Segment8

Ⅰ. ⅱ. Company Initiatives
Development activities
EM Technology Laboratory Co., Ltd（Common name: EMTLab.)●System development subsidiary funded entirely by EM Systems; Established in July 2020・Consolidates state-of-the-art technologies and environments where cutting-edge
innovations are made・Creates globally-adaptable development professionals
・Secures promising human resources by being a company that is attractive to developers
・Clarifies and optimizes profitability as a development organization
 Strengthening product competitiveness through expanding the functions of the alreadyreleased MAPs for CLINIC and MAPs for PHARMACY Development of MAPs for NURSING CARE, a long-term care/welfare system, andpreparations for release Contribution to standardizing the industry and reducing costs through the OEM provisionof a shared engine: Expansion to other companies in the same fieldＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

9

Ⅰ. ⅱ. Company Initiatives
ESG activity
 Slogan for sustainability activities“A step further into a better future”

Revision of management philosophy andcompany policy

Corporate brand/logo

Formulation of new "#TX" corporate brand logo

Revision of key issues with non-financial
indicators
Mapping of social priorities and company management
issuesIdentification of important issues(materiality)

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

Full-scale formulation of non-financial (futurefinancial) indicators scheduled for February 2022

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

10

Ⅰ. ⅱ. Company Initiatives
 Mapping of social and corporate priorities and identification of important issues (materiality)
Important issues (materiality)

Common
SDGs

Related SDGs

Summary of Initiatives

Examples of initiatives

１．Construction of an
infrastructure that connects"thank-you’s"• System development as a stable infrastructure• Human resource development to enable
continuous system provision• Creation of an organization that guarantees quality• Development and dissemination of MAPs series

２．Construction of trusting
relationships that connect"thank-you’s"• Advanced security support• Strengthening of corporate governance• Realization of well-being

•
•
•
•
•

３． Efforts toward anenvironment that connects"thank-you’s"• Product development with consideration toward
reduction of environmental load
• Consideration of clean energy utilization• Risk management in response to environmentalload and climate change• calculation of energy consumption• Consideration of actions in response to TCFD
recommendations

４．Collaborative creation ofvalue connected by "thank-you’s"• System development that contributes to therealization of team medical care
• Contribution to the further realization of people's
health and happiness• Provision and proposal of services• Contribution to the realization of DX being
encouraged by the government and developmentof human resources that can be promoted• Services for linking medical information (EHR)• Human resource development program

Establishment of compensation committee
Formulation of a skill matrix
Promotion of health management
Vitalization of employee engagement through SDGs
Sports promotion activities External evaluation
Certified as a 3-star company in the “5th Nikkei Smart Work Management Survey” that selects leading companies which are
working to improve productivity through work style reforms (for 2 consecutive years)ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

11

Ⅰ. ⅱ. Company Initiatives
Social contribution activities
 Sponsor participation in the KIMIKO DATEx YONEX PROJECTＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

 Ai Love All Tennis Academy
Participation as a professional tennis player sponsor(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

12

Ⅰ. ⅱ. Company Initiatives
Social contribution activities
 Donations to course for the development of health care AI (Course head: Specially-appointed AssistantProfessor Yoshimasa Kawazoe M.D., Ph.D.)

We agree with the purpose of the Artificial Intelligence in Healthcare course at the University of Tokyo, aimed at developing abase for new medical services focused on AI and ICT, and we have been supporting the course’s activities through continuous
donations since 2017.

 Participation in examination of next-generation electronic medical record base (Representative: Professor
Kazuhiko Ohe, M.D., Ph.D. at the University of Tokyo)

We participate in NeXEHRS Consortium, established with the goal of constructing a next-generation electronic medical record
sharing platform.

 Cooperation in a project by the Ministry of Health, Labour and Welfare (Researcher: Professor Kazuhiko Ohe,
M.D., Ph.D. at the University of Tokyo)
We cooperate in examinations of “research and development of standards to ensure interoperability between medical
information provision forms, electronic prescriptions and other electronic medical documents,” a research project by the
Ministry of Health, Labour and Welfare, and we participate in verification tests of uploading electronic prescriptions generated
according to HL7 FHIR standards into pharmacy receipt computers.

 Support for polypharmacy measures (Representative: Professor Hirohisa Imai Ph.D. at the University ofTokyo)

We agree with the purpose of the polypharmacy measures promoted by the Society for the Promotion of Proper Drug Usage,
and we support its activities as a special member.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

13

Ⅱ. ⅰ. Financial Highlights for December 31 2021, 3rd Quarter
consolidated results of December 31 2021, 3 rd Quarter

Topics for December 31 2021, 3 rd Quarter□ Accelerated system installation toward full-scale operation of online qualification confirmation and increased sales□ Steady increase in billing sales following increased number of billing customers□ Manufacturing costs increased due to investment in new system development personnel to handle the unexpected
revision of the Long-term Care Act□ Ordinary income increased due to payment of dividends from accumulated income as a result of changes in thebusiness content of our deconsolidated wholly owned subsidiaryＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

14

Ⅱ. ⅱ. Changes in consolidate results by fiscal year
Flow-Based

Fully Stock-Based

Partially Stock-Based(Millions of yen)
Sales
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

9,660

13,9742005.32006.32007.32008.32009.32010.32011.32012.32013.32014.32015.32016.32017.32018.32019.32020.3 2020.12 2021.12

Operating Profits

The 2020 fiscal year was a 9-month accounting period due tochange in the fiscal year end(Millions of yen)

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

2005.32006.32007.32008.32009.32010.32011.32012.32013.32014.32015.32016.32017.32018.32019.32020.3 2020.12 2021.12

Profit Margin
ratio

19.0%

20.0%
11.3%

2005.32006.32007.32008.32009.32010.32011.32012.32013.32014.3

1,508

22.0%

14.7%

15.3%

1,037

2015.32016.32017.32018.32019.3

10.7%

10.8%

2020.3 2020.12 2021.12-15.0%ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

15

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

16

Ⅱ. ⅳ. By Segment Sales/Operating Profits※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.
※We have changed the fiscal year ended from March 31 to December 31 starting from the 2020 fiscal year.

IT Systems for Pharmacies･･Contribution to increased sales through expansion of online qualification confirmation system installations
Decrease in capitalized for "MAPs for PHARMACY "and higher maintenance costs.
IT Systems for Clinics･･･････In addition a full-scale introduction of online qualification confirmation systems, increase in sales as a resultof an increase in the number of existing system sales, and a steady increase in billing sales.
IT Systems for long-term care/welfare･･････ In addition to the initial introduction of large-scale projects, billing sales remained strong
Following the revision of the Long-term Care Act, we have invested in new systemdevelopment personnel to respond to the revision, resulting in a temporary decrease in new
development of "MAPs for NURSING CARE" and increased manufacturing costs.
Other Business ････････・・・・Due to the change in the operation system of rental conference rooms, rental conference room sales are nolonger included in the sales and operating income of other businesses, and both the sales and operating
income of the pharmacy business decreased due to the decrease in the number of prescriptions caused by theof COVID-19.
ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．spread(C)2021EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

17

Ⅱ. ⅴ. By Segment Sales Breakdown※Net sales by segment are the amounts before elimination of inter-segment transactions.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

18

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

19

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

20

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

21

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

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

22

Ⅱ. ⅷ. IT Systems for Long-term care/Welfare
Quarterly Sales （Units: Millions of yen）

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

23

Ⅱ. ⅷ. IT Systems for Long-term care/Welfare
Moving Annual Total（Units: Millions of yen）

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

24

Ⅱ. ⅸ. Forecast for the fiscal year ending December 2021
（Millions of yen）

※Segmented sales and operating proﬁts and losses are the amounts before elimination of internal transactions between segments.
※ The Company has changed the fiscal year end from March 31 to December 31 starting from the 2020 fiscal year.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

25

Ⅱ. ⅹ. Market Share and Number of Customers
IT Systems for Pharmacies

IT Systems for Clinics

IT Systems forlong-term care/welfare

Market share33.8％

Market share 3.1％

Market share 5.6％

Number of customers ︓16,895
Target population︓50,000
Mid-term goals
︓25,000

Number of customers ︓ 2,760
Target population︓90,000
Mid-term goals
︓10,000

Number of customers ︓ 14,026
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 September 30 , 2021)*3 Mid-term goals are as announced in May 2018.

26

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

26

Ⅱ. ⅺ. shareholder returns
・Aim at a payout ratio of 30%
・Changing the fiscal year ended from March 31 to December 31 starting from the 2020 fiscal yearchange in thefiscal year end*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 2014.

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

27

Supporting Date . Shared Information System Foundation

Specialized Functions(Clinics & Pharmacies）

Clinic App

Pharmacy App(Medical Records)(Medication History, HQ
Functions)

Nursing care/welfare App
CommonFunctions（Clinics & Pharmacies）

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）

ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

Specialized
Functions（Nursing care/welfare ）(C)2021 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

CommonMasterCommonEngine28

Contact:
EM SYSTEMS CO., LTD.
IR Section, General Affairs Department
Shin-Osaka Brick Bldg.
1-6-1 Miyahara, Yodogawa-ku,
Osaka 532-0003, Japan
https://emsystems.co.jp/ir/mailform.html

The contents in this presentation materials are based on assumptions judged to be valid and information available to
the 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.