mascot character
ＥＭＭＡResults of Operations
for financial year ended December 312020

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.

ContentsI.

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

II. “Results of Operations for Financial year ended December 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. 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
III. New Administrative System

Supporting Date

Shared Information System Foundation

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

2

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
even during the officially declared State of Emergency.

Working Environments

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 officethrough promotion of digitization, etc.

Sale Activities
Sales activities via the Internet and telephones.

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

3

Ⅰ. ⅰ. Market environment
Clinics■ Responses to the Post-Covid-19 Status(Promotion of online medical care, medicalconsultations by appointment, transition towardcashless systems, etc.)■ Hybridization of exhibitions by academia

Initiatives● 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■ Standardization of electronic medical● Participation in the government-promoted

records at medical institutions(with the goal of information sharing as government)■ Transition toward electronic prescriptions,and construction of information viewing
environments at medical institutions where
Individual Number Cards are used asinsurance certificates(Individual unitization of insurance information, andimprovement of patient convenience)
Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

electronic medical record standardization
verification project4● Provision of online qualification confirmation
system(compatible with subsidy system)

Ⅰ. ⅰ. Market environment
Pharmacies■ Responses to the Post-Covid-19 Status(Optimization of operations within pharmacies,
promotion of online medication guidance, deliveryof medications, etc.)■ Reorganization, and strong performance

Initiatives● Provision of head office systems capableof coordinating with the systems of othercompanies● Provision of head office systems capablein M&A drugstore industry

of coordinating with the systems of othercompanies■ Hybridization of exhibitions and transition● Application of online demonstrations

toward holding such exhibitions online■ Transition toward electronic prescriptions,and construction of information viewing
environments at medical institutions whereIndividual Number Cards are used as
insurance certificatesand online business negotiation tools, andnon-face-to-face sales● Provision of online qualification
confirmation system(compatible with subsidy system)(Individual unitization of insurance information, andimprovement of patient convenience)

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

5

Ⅰ. ⅰ. Market environmentLong-term care/welfare

Initiatives■ Increase in the number of new facilities● Development and release of MAPs,

accompanying the aging of society, andincrease in the number of large-scale chain
long-term care facilities

and establishment of a specializedorganization to operate chain store sales■ Responses to the Post-Covid-19 Status● Application of online demonstrations(Provision of non-contact services, limitations onfacility usage, strengthening infection
countermeasures, etc.)■ Increase in the demand for digitizationof long-term care records, and promotion ofinformation utilizations■ Revision of long-term care fees
April,2021

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

and online business negotiation tools,
and non-face-to-face sales● Proposals to promote systemization,and examination of medical and longterm care information sharing

Ⅰ. ⅱ. Company Initiatives

Marketing Activities ,Sale Activities
ClinicPharmacyLong-term care

Implementation of SEO and SEM measures

ClinicPharmacyLong-term care

Application of M&A

ClinicPharmacy

ClinicPharmacy

ClinicPharmacy

ClinicPharmacy

Expansion of partnership with Biznet Corporation accompanyingbreakaway from direct hardware sales
Application of electronic contracts, and estimates and configuration
examinations conducted personally by customers through “MAPsDIRECT,” an e-commerce site
Promotion of non-face-to-face sales focusing existing customers
Long-term care

Pharmacy

ClinicClinicPharmacy

Expansion of sales channels such as OEM and agency businesses
Commencement of handling of MAPs for PHARMACY by YUYAMA Co., Ltd.

Long-term care

：Clinic Segment

Regional comprehensive care and collaboration between hospitals andpharmacies → Realization of collaboration between hospitals andpharmacies through cooperation with CSI Co., Ltd.

Pharmacy ：Pharmacy Segment Long-term care ：Long-term care/Welfare
Segment

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

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 field
Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

Ⅰ. ⅱ. Company Initiatives

Social contribution activities
 Sponsor participation in the KIMIKO DATE x YONEX PROJECT Commencement of engagement in SDGs

 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.

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

9Ⅰ. ⅱ. Company Initiatives

Social contribution activities Participation in examination of next-generation electronic medical record base (Representative: 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 theMinistry 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.

 Cooperation in a project by the Ministry of Health, Labour and Welfare (Researcher: Professor KazuhikoOhe, 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 theMinistry 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.

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

10

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

Topics for December 31 2020

□ The initial sales target for services was not reached due to delays in shipping and expansion of MAPs.
□ Depreciation costs increased due to the release of new functions for the MAPs series.
□ Sales of existing products increased in the pharmacy and medical segments.

□ We contributed to business taking large-scale SI project orders from major chain stores.
□ Billing sales steadily increased.

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

11

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

13,9742005.32006.32007.32008.32009.3

2010.32011.32012.32013.32014.32015.32016.32017.32018.32019.32020.3 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 Marginratio

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%

2020.3 2020.12 2021.12-15.0%

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

10.8%

12

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

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

13

Ⅱ. ⅳ. By Segment Sales/Operating Profits※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.
※Accompanying the change in closing date, this consolidated fiscal period is an irregular 9-month fiscal period. As such, this does not list year-on-year general performance comparisons.

IT Systems for Pharmacies･･･Initial sales decreased due to a decrease in the number of existing systems sold.
Initial sales target for services was not reached due to delays in shipping and expansion of MAPs.
IT Systems for Clinics････････The number of new systems sold decreased, although billing sales increased steadily.
Operating losses due to increase in depreciation cost accompanying full-scale operation of MAPs
IT Systems for long-term care/welfare･･････ In regard to “the Hibiki” series and “Symphony,” in addition to changing initialsales from five-year gross sales to monthly sales during the previous 2nd quarter
consolidated cumulative period, subscription sales are transitioning smoothly andoperating losses are down due to asset accrual owing to new development of“MAPs for NURSING CARE.”
Other Business ････････Operating losses were incurred due to an increase in expenses relating to sales and administrationaccompanying the initial launch of cashless projects by subsidiaries, in addition to closures of sports
14
Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.
gyms and nursery schools, as well as cancellations of rental conference room reservations.

Ⅱ. ⅴ. By Segment Sales Breakdown※Net sales by segment are the amounts before elimination of inter-segment transactions.
※Accompanying the change in closing date, this consolidated fiscal period is an irregular 9-month fiscal period.
As such, this does not list year-on-year general performance comparisons.

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

15

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

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

16

Ⅱ. ⅵ. IT Systems for Pharmacies
Moving Annual Total（Units: Millions of yen）
Moving Annual Total
7,000

6,500

6,000

subscription-based business

5,500

5,000

one-time-fee business
4,500

4,000

3,500
4Q
Mar312016

1Q

2Q

3Q

Mar 31 2017

4Q

1Q

2Q

3Q

4Q

1Q

Mar 31 2018

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

2Q

3Q

Mar 31 2019

4Q

1Q

2Q

3Q

Mar 31 2020

4Q

1Q

2Q

3Q

Dec 31 202017

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

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

18

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

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

19

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

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

20

Ⅱ. ⅷ. IT Systems for Long-term care/Welfare
Moving Annual Total（Units: Millions of yen）
Moving Annual Total
600550500450400350subscription-based business

300
250
200

one-time-fee business

150

100500
1Q

2Q

3Q

4Q

1Q

Mar 31 2020
one-time-fee business

2Q

3Q

Dec 31 2020
subscription-based business

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

21

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.
Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

22

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

IT Systems for Clinics

IT Systems forlong-term care/welfare

Market share32.4％

Market share 3.3％

Market share 5.5％

Number of customers ：16,164
Target population：50,000
Mid-term goals：25,000

Number of customers ： 2,929
Target population：90,000
Mid-term goals：10,000

Number of customers ： 13,840
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 December 31 , 2020)*3 Mid-term goals are as announced in May 2018.

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

23

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 year

0change 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.
Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

24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）

Copyright (C)2021 EM SYSTEMS Co ., Ltd. All Rights Reserved.

CommonMasterCommonEngine25

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.