Results of Operations for
December 2024, 2nd Quarter(TSE Prime Section : 4820)

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, theoriginals shall prevail.
The Company assumes no responsibility for this translation or for direct, indirect or any other forms ofdamages arising from the translations.

Table of Contents

１．Topiｃｓ
２．Performance Overview（December 2024,2nd Quarter）
３．Status by Segment
４．Company Initiatives
５．Business Forecasts(December 2024,2nd Quarter)
６．Shareholder Returns
７．Regarding the Next Mid-term Management Plan
８．Appendix.

2

Topics
December 2024, 2nd Quarter

December 2024, 2nd Quarter
Market Environment / Business Highlights●●●●

M&As and an increase in the number of customers contributed to record sales and sales of recurring income 1 for the half-year
EBITDA, excluding one-time system failure response costs2, achieved a significant increase of 38% year-on-year (operating profits: +7%)
Dividends increased by 2 yen over the initial forecast due to upward revision of business performance
The full-year forecast remains unchanged in consideration of system failure-related costs

Overall market environment
Digital transformation in the medical field accelerated (including anationwide medical information platform, standardization of electronic
medical record information, and digital transformation of medical fee
revisions)
Adoption of the online eligibility verification system and optional
software as well as incorporation of electronic prescriptions
accelerated due to the establishment of a system to incentivize digitaltransformation in the medical field under the 2024 medical fee andmedication price revisions

IT Systems for Pharmacies
Despite the end of intensive demand for the online eligibility
verification system, incorporation of electronic prescriptions
accelerated
Good Cycle System Inc. became a wholly owned subsidiary

IT Systems for Clinics
Intensive demand for the online eligibility verification system has
ended, and customers are gradually incorporating electronicprescriptions
Sales of “MAPs for CLINIC” continued to increase steadily from theprevious fiscal year as it gained recognition as a highly functional
app/cloud-based product
System failures resulted in post-incident response expenses(As a future measure, the company is working to make the system
available even in the event of a failure and to reduce theoccurrence of failures.)

IT Systems for long-term care/welfare
The development phase progressed steadily, and inquiries
increased due to measures to accelerate replacement of existingproducts (Hibiki and Symphony)

Promotion of digital transformation in the medical field increased sales of“Sumareki,” a cloud-based electronic drug history system bundled with receipt
computers for “ReceptyNEXT,” which has numerous customers
Released “Prescription Sharing” and “Cloud POS Cash Register System Linkage
Enhancement” to boost operational efficiency*1 From among all sales, this refers to the sum of billing, supply, and maintenance sales (or the total sales minus the initial sales (flow sales))*2 Reserves to cover expenses for system failures that occurred in the 1st and 2nd quarters4Performance Overview
December 2024,2nd Quarter

Financial Highlights for December 2024,2nd Quarter
Consolidated results of FY 2024 Q2

Topics for FY 2024 Q2
Sales：

Achieved steady sales growth due to M&A of
Good Cycle Systems Inc. and Unike Software
Research Co., Ltd.

EBITDA：EBITDA showed a significant increase due to
steady incorporation electronic prescriptions

Operatingprofits：

In addition to an increase in sales, operating
profits also increased due to a year-on-year
decrease in one-time expenses such as TVcommercial broadcasts and special
compensation payments

Units：Millions of yen
FY2023 Q2ResultFY2024 Q2
Estimated
results

FY2024 Q2ResultCompared
to previous
year

Comparedtoestimated
results

Sales

9,818

11,044

10,989

11.9%

△0.5%

EBITDA

1,613

-

2,231

38.3%

-

Operatingprofits

1,144

1,350

1,221

6.7%

△9.6%

Ordinary
profits

1,394

1,676

1,540

10.5%

△8.1%

Net income

789

1,053

985

24.9%

△6.4%

Operating profits decreased from the revised
forecast due to the addition of reserves for user
retention following revision of the interim
earnings forecast accompanying system failuresin the latter half of June
Net income：Net income increased year-on-year due to theelimination of losses related to the phased
acquisition of Good Cycle Systems, Inc.

*EBITDA is calculated by adding depreciation, amortization, and reserves to cover expenses for system failures back into the operating profits 6

Sales / Operating Profits-Summary

Sales■ Operating profit■ EBITDA

7

Status by Segment
December 2024,2nd Quarter

Sales / Operating Profits-Summary（By Segment)

Sales

Operatin
g profits

IT Systems forlong-term care/welfare

IT Systems for Pharmacies

IT Systems for Clinics

Sales of recurring income grew 29.4%
year-on-year to 4,948 million yen due to
M&As and an increase in the number ofcustomers

Although billing sales increased due to anincrease in the number of customers, sales ofrecurring income remained stable overall due to adecrease in maintenance sales resulting from thein-house replacement of Uni-Medical, for which
support is scheduled to end
Initial sales declined year-on-year, as the effectsof the end of intensive demand for the online
eligibility verification system (a decrease of 362
million yen) was not offset by the increase (of 49
million yen) in electronic prescription sales

In terms of sales of recurringincome, billing sales increased byroughly 11 million yen accompanying
in-house replacement of Hibiki and
Symphony with “MAPs for NURSING
CARE,” while maintenance sales
decreased by roughly 23 million yen

Operating losses increased due to the end of theintensive demand for the online eligibility
verification system as well as due to reserves for
one-time expenses to respond to customers who
experienced system failure

Operating losses narrowed slightly
due to improving manufacturing
costs

Initial sales increased slightly overall due toan increase in electronic prescription sales(of 1,008 million yen) and the effect of
M&As (of 551 million yen), despite the endof the previous year’s intensive demand forthe online eligibility verification system (a1,298 million yen decrease)

Despite the end of the intensive demand forthe online eligibility verification system,
operating profits increased due to M&As andan increase in the number of customers
incorporating electronic prescriptions* Sales of recurring income are the sum of billing , supplies, and maintenance.

9

Sales / Operating Profits（By Segment)

Sales

Operating Profits

Units：Millions of yen

Units：Millions of yen

FY2023Q2

FY2024
Q2

YoYchangeFY2023
Q2

YoY %changePharmacies

7,681

9,013

1,331

17.3%

Pharmacies

Clinics

1,529

1,198

△330

△21.6%

Clinics

long-termcare/welfare

278

283

4

1.8%

long-termcare/welfare

Other

386

572

186

48.3%

Other

FY2024
Q2

YoYchangeYoY %change

1,405

1,684

278

19.8%

△7

△306

△298

-

△285

△229

56

-

5

40

34

655.9%*Sales and operating profits by segment are the amounts before elimination of inter-segment transactions.

10Initial sales - Breakdown of Increases/Decreases（Pharmacies）
Positive
The electronic prescriptions businessenvironment was favorable and results
exceeded those planned(with the portion
planned for the second half now occurringin the first half)
Although hardware replacements decreased
year-on-year due to intensive demand in
response to the end of support for Windows
8.1 last year, the results exceeded thoseplannedIncrease/Decrease in Initial ｓales

209

551

1,008

△472
InlineM&A effects were in line with thoseplanned in advance△1,298Intensive demand for the online eligibility
verification system in the previous fiscal
period ended as planned

Negative
Although initial system sales, etc. surpassed
those of last year, they fell short of theplan
Recording of post-incident response
expenses for the “leap day” system failure* Categories of increases/decreases are the amounts before applying revenue recognition standards

11Initial sales - Breakdown of Increases/Decreases（Clinics）

Increase/Ｄecrease in Ｉnitial sales

△39

49

34

△362

* Categories of increases/decreases are amounts before considering increase/decrease of consolidated subsidiaries

12Our Share and Our Approach to Expanding Our Share●●●

While each market continues to consolidate around the top manufacturers, there are still many mid-sizedvendors with several thousand customers
Vendors with 10,000 or fewer customers bear a heavy burden when revising software accompanying systemchanges
Our intention is to increase our share of each market by continuing to actively pursue M&As

IT Systems for Pharmacies

IT Systems for Clinics

IT Systems forlong-term care/welfare

Market share

Market share

Market share

43.9％

3.4％

5.7％

Number of customers：24,170(QoQ+141)
Target population：55,000
Mid-term goals：25,000

Number of customers： 3,100(QoQ+30)
Target population：90,000
Mid-term goals： 7,000

Number of Licenses
Target population
Mid-term goals： 14,283(QoQ△54)：250,000： 25,000(as of June 30 , 2024)*1 Number of our customers is the number of customers of system products sold by us.
*2 The number of target customers for each product is set independently by the Company.
*3 Targets in the mid-term plan are those announced in February 2022.

13

Trends in Number of Customers
IT Systems for Pharmacies
Units：locations

IT Systems for Clinics
Units：locations

IT Systems for long-term care/welfare

Units：licenses

14Company Initiatives

Market Environment / Company Initiatives
Initiatives

Market Environment
While demand for medical and long-term care/welfare services will
increase in line with the 2025 problem (Japan’s falling birthrate
and aging of the population), there is an urgent need to secure
medical and long-term care/welfare practitioners and improve
operational efficiency
Revision of both medical and long-term care/welfare services in
2024 (which only occurs simultaneously once every six years)
Dispersion of the timing at which revisions to the various fees are to
take effect throughout the year, beginning from April

An increase in cyberattacks on medical organizations making
cybersecurity measures and responses mandatory*1

Increase in the number of large chain nursing homes dueto the aging of society Responses to the Care Plan Data
Linkage System, improvement of data accuracy by LIFE
support*2

Development of unique solutions that leverage the characteristics
of our business as an all-in-one services provider for pharmacies,
clinics, and long-term care/welfare
Enhanced online provision (via the website EM-AVALON) of
specialized information for the medical and nursing care fields, andprovision of online seminars for medical practitioners

Development of solutions designed to resolve industry
issues such as labor shortages and operational efficiency(Ex: prescription sharing systems, prescription readers, etc.)

Participation in the government-promoted electronic
medical record standardization verification project

Provision of our products to other companies on an
OEM basis at low prices

Amazon’s launch of Amazon Pharmacy services
ClinicPharmacyLong-termcare/welfare*１ Ministerial Ordinance Partially Revising the Ordinance for Enforcement of the Medical Care Act（March 10, 2023 Ministry of Health, Labor and Welfare）*２ LIFE : Long-term care Information system For Evidence

16

PMI Progress●●

Progression of PMI as steadily as initially envisioned
Entry into the phase of formulating and implementing measures to generate synergies via measures toimprove communication between Group companies and the lively activities of each working group

Field

Product
Strategy

Measures

Improve the added value of each company’s systems
Reduce development costs by avoiding duplicate
software development within the group

Progress
Expand sales of integrated products for receipt/electronic
drug history utilizing electronic drug history products
manufactured by Good Cycle Systems
Shifted to a business model centered on billing sales for
all group companies
Established working groups to commence discussions, andimplemented the integration for some productsManagement
Strategy

Reduce costs through office consolidation andrelocation

Consolidated and relocated some offices

Reduce procurement costs through joint purchasing

Implemented joint purchasing

Reallocate personnel within the Group without
downsizing the staff

Optimized personnel assignments, including consolidationof administrative departments (back-office operations)17System Changes (effective July 1, 2024)
Issues

Improvements to product quality,
prompt provision of information tocustomers on product status andorganization of information
Maximization of the value of groupcompanies (consolidated
subsidiaries) and enhancements to
how the effects of measures areassessed and managed
Product strategy enhancementsthat leverage Group synergies, andcommunication of the Group’s
mission, vision, and purpose

MeasuresEstablishment of a new headquarters to enhance quality
control
Establishment of a new headquarters for management
strategies and Group business management
Consolidation of administrative departments (back-office
operations) to improve business management efficiency

Appointment of executives to enhance productdevelopment at each Group company （EM Technology
Laboratory ＆ Good Cycle System）
Enhanced efforts to generate synergies between Group
companies by inviting additional managers from eachcompany to attend management meetings, among othermeasures

Personnel Changes ： https://emsystems.co.jp/ir/irnews/2024/240628_01.pdf
Notice of Change of Directors of a Subsidiary ： https://emsystems.co.jp/ir/irnews/2024/240515_01.pdf

18

Sales Model Reform
Sales structure reform●

Reorganization and specialization of eachsegment●

Enhancement of inside sales divisions●

Reallocation of sales forces, which tend to
focus on pharmacies

Enhancement of marketing activities

Positive
Increase in the number ofpotential projects acquired
Further sales activities that leadto more efficient generation ofprojects
Steady accumulation of expertise
in-house

Issues●Organization and co-sponsorship of seminars

Increasing Group recognition●

Utilization of online advertising and industry

In response to system
failure,Currently working to
improve quality and enhance theprovision of information tocustomers

websites●

Enhanced application of the push typeapproach19

Fiscal Year Forecast
Year Ending December 31,2024

Fiscal Year Forecast （Year Ending December 31, 2024）
Units：Millions of yen
FY2023
actualFull-year forecasts remainunchanged from initial projections
Sales

Although the first half of the fiscal
year exceeded the initial plan due
to the advance of some projects
such as administrative responses,
the full year forecast is expected
to be in line with the initial
forecast as it is expected to levelout in the second half of the fiscal
year.

FY2024
forecast

20,35522,014

Pharmacies

16,15917,555

Clinics

2,802

2,640

Long-term care/welfare

550

812

Others973

1,182

Adjustment

△131

△177

2,330

2,573

Pharmacies

2,939

3,002

Clinics

△130

△178

Long-term care/welfare

△540

△304

Others48

24

Adjustment

13

29

Ordinary profits

2,869

3,199

Net income

1,962

2,160

Operating Profits

21

Changes in Consolidate Results by Fiscal Year
Flow-Based

Units:Millions of yen

Partially stock

Fully stock

9 months

Sales

Operating
Profits

EBITDA Ratio
Operating
Profit Margin●◆F20.12 Change in the fiscal year end

22Shareholder Returns

Shareholder Returns (Dividends)●●

13th consecutive term of dividend increase＊FY2020.12 Excluding changes in fiscal year end
FY2024 Interim dividend will also be increased↑
Change in the fiscal 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 2015.

(estimated)

24

Shareholder Returns (Acquisition of Treasury Stock)●●

We have been acquiring treasury stock as a strategic means of improving capital efficiency and enhancing
shareholder returns.
We will continue to consider shareholder returns, including acquisition of treasury stock, in order to continuously
increase the corporate value of each share.

[Reference]
Details of the resolution made on February 14,
2024
Total number of shares to be acquired:
Up to 1.6 million shares(Ratio in relation to the total number of sharesissued (excluding treasury stock): 2.26%)
Total amount of shares to be acquired:
Up to 1 billion yen
Acquisition period:
From February 15, 2024 to December 30, 2024
Reason for acquisition:
To implement a flexible capital policy inresponse to changes in the businessenvironment, to improve capital efficiency,
and to enhance shareholder returns.

Acquisition period

Total acquisition
value

Percentage2 of
total shares issued1

November 10, 2010 ～57 million yen

1.14%

February 09, 2011 ～69 million yen

1.18%

September 05, 2011 ～79 million yen

1.26%

November 11, 2011 ～77 million yen

1.08%

May 25, 2015 ～99 million yen

0.49%

June 18, 2018 ～500 million yen

1.19%

January 07, 2019 ～500 million yen

1.18%

June 11, 2020 ～500 million yen

0.78%

February 10, 2022 ～500 million yen

0.80%

February 15, 2024 ～1 billion yen(maximum)2.26%3*1 Excluding treasury stock*2 Rounded to the third decimal place*3 Assuming that 1.6 million shares are repurchased, which is the upper limit

25Regarding the Next Mid-termManagement PlanRegarding the Next Mid-term Management Plan●

Commencement of full-scale considerations for the next medium-term management plan
(FY 2025-FY 2027)●

To be announced by the time of the announcement of the financial results for the fiscal year
ending December 31, 2024.

●
Management
strategy

Financialstrategy●●●

Identify the progress made under the current medium-term management
plan, as well as any issues
Consider KPIs appropriate for a recurring income business model
Improve sales and profitability through growth strategies and thorough cost
control

Consider setting financial indicators and targets in a manner that takes
shareholders into greater consideration27

Appendix.

M&A Performance (Track Record and Effectiveness)●●●

Acquired seven companies in order to expand market share in the pharmacy market andacquire customers as the foundation for entering new markets
We intend to continue identifying market changes and responding flexibly in order to expand ourcustomer base in the pharmacy, clinic, and long-term care/welfare fields, and to improve our
product lineup and quality
UniconPharmacies

2013

2014

Cosmo systems

Clinics

Janis
2019

M_WIN SOFT
2019

Pop-Creation

long-termcare/welfare

Number of customers ： 1,700
Conclusion of M&As that contribute to the
expansion of our base, including the expansion ofsales channels
long-termcare/welfare

Pharmacies

Clinics

Number of customers ： 8,000
Contributions to higher retention and ARPU byenhancing services such as those relating toelectronic drug history records

2023

Good Cycle System
UNIKE SOFTWARERESEARCH

Number of Licenses ： 11,000
Acquisition of product development resources, etc.
to expand into the long-term care/welfare market

29

Balance Sheet Summary
Units: Millions of yen
FY2023Q4

FY2024
Q2

YoYchangeYoY %changeAssets29,38729,282

△104

△0.4%

Current assets

14,80015,214414

2.8%

Fixed assets

14,587

14,067

△519

△3.6%

Tangible fixed assets

1,330

1,436

106

8.0%

Intangible fixed assets

5,186

4,782

△403

△7.8%

Investments and other assets

8,070

7,848

△221

△2.7%

Liabilities

8,821

8,878

57

0.6%

Current liabilities

5,618

6,247

629

11.2%

Fixed liabilities

3,202

2,630

△572

△17.9%Net assets

20,566

20,404

△161

△0.8%

Shareholder's equity

20,272

20,083

△188

△0.9%

Cumulative amount of other comprehensive

191

240

48

25.2%

Stock acquisition rights

56

55

△0

△1.4%

Non-controlling interests

45

24

△20

△46.1%30

By Segment Sales Breakdown
Units : Millions of yen
FY2023Q２ Results

FY2024Q2 Results

YoY change

YoY % change

Net Sales

9,818

10,989

1,170

11.9%

IT Systems for Pharmacies

7,681

9,013

1,331

17.3%

Initial

3,857

4,065

208

5.4%

System usage fee

2,552

3,437

885

34.7%

Consumable goods

886

1,033

147

16.6%

Maintenance service

386

476

90

23.6%

IT Systems for Clinics

1,529

1,198

△330

△21.6%

Initial

995

664

△331

△33.3%

System usage fee

412

443

30

7.5%

Consumable goods

28

25

△2

△10.2%

Maintenance service

92

65

△27

△29.5%

278

283

4

1.8%

Initial

20

37

16

81.5%

System usage fee

112

124

11

10.4%

Consumable goods

0

0

0

-

IT Systems for Long-termcare/welfare

145

121

△23

△16.3%

Other Businesses

Maintenance service

386

572

186

48.3%

Adjustments

△58

△79

△21

-

* Net sales by segment are the amounts before elimination of inter-segmenttransactions

31

Quarterly Sales （Pharmacies）

FY2020

FY2021

FY2020

FY2022

FY2021

FY2023

FY2022

FY2024FY2023

FY2024

Q1

Q2

Q3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Initial sales

629

1,006

942

860

938

1,265

1,502

1,458

1,586

1,711

1,719

2,016

1,840

1,877

1,706 2,099

Supply ＆ maintenance
sales

614

621

659

622

650

631

667

621

664

640

704

617

654

769

835

754

756

System usage fee
sales

988

994

996

1,004

1,022

1,019

1,042

1,068

1,100

1,122

1,130

1,149

1,403

1,624

1,663

1,714

1,723

32

Q2
1,965

Quarterly Sales （Clinics）

FY2020

FY2021

FY2020

FY2022

FY2021

FY2023

FY2022

FY2024FY2023

FY2024

Q1

Q2

Q3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Initial sales

148

230

187

206

199

250

265

274

267

285

307

521

473

453

282

327

336

Supply ＆ maintenance
sales

90

86

72

82

80

76

76

72

69

65

68

64

56

53

55

48

42

System usage fee
sales

154

163

165

172

177

180

187

191

197

198

203

205

206

213

215

219

223

33

Quarterly Sales （Long-term care/welfare）

FY2020

FY2021

FY2020Q1Q2

FY2022

FY2021Q3Q1Q2FY2023

FY2022

Q3

Q4

Q1

Q2

FY2024FY2023

Q3

Q4

Q1

Q2

FY2024

Q3

Q4

Q1

Q2

Initial sales

10

8

19

49

16

8

10

13

7

7

12

12

8

10

6

11

26

Supply ＆ maintenance
sales

77

76

78

77

77

75

75

76

75

74

72

73

72

68

67

65

56

System usage fee
sales

31

38

39

40

41

42

44

46

48

51

52

55

57

59

60

62

62

34

By Segment Recurring Income Business （Quarterly Sales）

FY2020

FY2021

FY2020

FY2022

FY2021
Q3

Q1

Q2

Q3

FY2023

FY2022
Q4

Q1

Q2

Q3

FY2024FY2023
Q4

Q1

Q2

Q3

FY2024

Q1

Q2

Q4

Q1

Recurring income businessfor Pharmacy

1,602

1,615 1,655 1,626 1,672 1,650 1,709 1,689 1,764 1,762 1,835 1,766 2,057 2,394 2,499 2,469 2,479

Recurring income businessfor Clinics

244

249

237

254

257

256

263

263

266

263

271

270

263

266

270

268

265

Recurring income businessfor Long-term care/welfare

108

114

117

117

118

117

119

122

123

125

125

128

130

127

127

127

118

35

Q2

MAPｓ series（Shared Medical Information System Foundation）

Specialized
Functions(Clinics &Pharmacies）

CommonFunctions（Clinics &Pharmacies）

Clinic App(MedicalRecords)

Pharmacy App(Medication
History, HQ
Functions)

Nursing care/welfare App

Medical Exam. Hearing/
Prescription Bags /Pharmaceutical Info. / InventorySpecialized
Functions（Nursing care/welfare ）Common Master/Contents(Medication/Prescription Check/Meal Recipes)

CommonMasterCounter Accounting/Receipt Billing（Medical Insurance, Nursing Insurance andIndependent Local Aid for Medical Expenses）

CommonEngine36

Online Eligibility Verification / Electronic Prescriptions

Online Eligibility Verification
Obligation

Application and installation largely complete●

Electronic Prescriptions
Recommendation
Apr.
Start ofapplication

2021

●

Applications and installations are gradually being madeOct.
Start of full-scale
operation

2022

Apr.
Mandatory(e.g. law)

2023

Jan.
Start ofapplication

Jun.
Revision of medical
End of mandatory
service fees
Sept.

transitional
measures（Addition of the following
additions）

2024

Dec.
My number card andinsurance card
integrated into one card

Medical DX promotion systemdevelopment incentives

System for online eligibility verification
System for issuing electronic prescriptions
Certain achievements in the use of miner's
insurance card
*Excerpt of some requirements

37

How the Online Eligibility Verification System WorksPatient

Clinic/Pharmacy

My
NumberCard

Place your My
Number Cardon the card
readerCard reader
with facerecognition

Identification
by PIN(4 digits)

Online eligibility
verification
systemSocial Insurance Medical Fee Payment Fund
All-Japan Federation of National Health
Insurance Organizations

Visualconfirmation

Confirmed by one of the three＊If computer-linked, data withverified eligibility is imported into thereceipt computer.

Dedicated
terminal

Cooperation

Onlineeligibility
verification
systemHealthInsurance
Card
Show healthinsurance card

Visualconfirmation

Handing overprescriptions

Prescription* If computer-linked, eligibility isverified on the receipt computer
screenOur receipt
computerterminal

When using a
My NumberCard, importverified data

38

How Electronic Prescriptions Function
Electronic prescriptions are a system for managing prescriptions electronically.
It enables users to refer to the latest prescription and dispensing information at multiple medical
institutions and pharmacies, and to check for duplicate medications.

Personal identification

Mynaportal &electronic prescription record app

My
NumberCard

Healthinsurance
cardElectronic
medical record

Hospital/Clinic

Browse drug
information

Duplicatemedication
check

Registration

Electronic Prescription
Management Services

Duplicatemedication
check

Registration

Social Insurance Medical Fee
Payment Fund / All-Japan
Federation of National Health
Insurance Organizations

Personal identification
My
NumberCard

Healthinsurance
cardElectronic
medication
records

Pharmacy

39

Enhancement of Sustainability Management
Human Capital-related Initiatives●

Expand recruitment activities
Full-scale operation of human resource education and training
system development
Provision of opportunities to self-enhance skills (e-Learning)

Set long-term goals (KPIs) based on materiality●

Established 18 long-term goals through 2030, including "Improve Employee Engagement Score
The Sustainability Committee will review the status of achievement and goals

Disclose details of initiatives and progress in achieving targets in annual reports and on
sustainability website.（Link）
External Evaluation••••

Recognized as an Excellent Corporation for Health & Productivity Management 2024
7th Nikkei Smart Work Management Survey 3.5 stars: one step up
S&P/JPX Carbon Efficient Index: First selection：continued authorization
FTSE Blossom Japan Sector Relative Index：continued authorization

40

Social Contribution Activities●

Support for tennis academies and professional tennis players
・Support for the tennis academy "Ai Love All Tennis Academy"・Affiliation contract with professional tennis players
・Provision of a "EM Tennis Clinic"(Scheduled for 2024: Fukuoka, Kanto)

Imamura Pro, EM SYSTEMS[ITF World Tennis Tour]W15 singles champion for 2 consecutive weeks /W50 doubles champion
Professional tennis player Saki Imamura, who belongs to
EM Systems, won the W15 singles (Thailand) for two
consecutive weeks, and won the W50
doubles(Yamanashi).

2Photos from the EM Tennis Clinic in Kanto
in 2023.
Ai Love All Tennis Academy representative,
Aiko Nakamura, and all other players fromthe Academy were in attendance.
Many medical practitioners participated andenjoyed the clinic!

Saki Imamura, Pro tennis player, EM
SYSTEMS41

Social Contribution Activities
Research Support Activities●

Donations to Medical AI/Digital Twin Development Course (Course head:Specially-appointed Assistant Professor Yoshimasa Kawazoe M.D., Ph.D.)
We endorse the activities of the University of Tokyo’s Course on Artificial Intelligence in Healthcare, which aims to develop a foundation for
new medical services based on AI and ICT, and we have been supporting R&D through continuous donations to the course since 2017.
From fiscal 2023, we plan to continue contributing to the research and development of this course in support of the establishment of the"Medical AI/Digital Twin Development Course", which is an extension of this course.

●

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

●

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

●Participation in PHR proliferation activities(Representative: Professor Taku Iwami Ph.D. at Kyoto University)
We participate in the activities of the PHR Council, which aims to promote the appropriate proliferation of Personal Health Records (PHR)
and contribute to further improving health and safety, and we support the proliferation of a framework ensuring that data relating to
medical care, long-term care, health, etc. is used at the discretion of the individual concerned.

42

Social Contribution Activities
Supporting Activities●

Participation in the Cross-ministerial Strategic Innovation Promotion Program (SIP)(Cabinet Office)Participated in formulating specifications for the core functions of cloud-based standardized electronic medical records
as a cooperating organization in the third phase, which began from FY2023, of a project to establish an integrated
healthcare system under the Strategic Innovation Promotion Program (SIP), which promotes initiatives from basic
research to practical applications and commercialization, and is spearheaded by the Council for Science, Technology
and Innovation of the Cabinet Office.

●Advance implementation of online eligibility verification and electronic prescriptions(Ministry of Health, Labour and Welfare)

Cooperation in the e-prescription model project aimed at launching e-prescription services in advance within four
regions in Japan (Sakata, Yamagata Prefecture; Sugakawa, Fukushima Prefecture; Asahi, Chiba Prefecture; and Asa,
Hiroshima Prefecture), in response to a request for cooperation from the Ministry of Health, Labour and Welfare.
Continued project for advance implementation of new features for online eligibility verification and electronicprescription systems after November 2023.

Donation Activities●

Commencement of acceptance of donations of EM Online Shop points(Japanese Red Cross Society and WFP)
Addition of a donation item to the conversion destination of points granted to customers based on thepurchase amounts of supplies and consumables.
10% of the donation amount added to the total by the Company following compilation of data.

43

The contents in this presentation materials are based on assumptions judged to bevalid and information available to the Company’s management at the time they wereprepared. 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 ofreasons.
EM SYSTEMS CO., LTD. IR Section
https://emsystems.co.jp/ir/mailform.html