Notice: This document has been translated from Japanese original for reference purpose only, without any warranty as to its
accuracy or as to the completeness of the information. The Japanese original version is the sole official version.

Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2021
[Japanese GAAP]
Company nameSecurities CodeFebruary 9, 2022
EM SYSTEMS CO., LTD.
Listed on :Tokyo Stock Exchange, First Section
ＵＲＬ http://www.emsystems.co.jp
4820
Hiromasa Kunimitsu, Representative director and President , Executive officer

Representative
Representative
Megumi Seki, Director, Executive officer
for inquiries
Scheduled date of Annual General Meeting of Shareholders:
Scheduled date of payment of dividend:
Scheduled date of filing of Annual Securities Report:
Preparation of supplementary materials for financial results:
Holding of financial results meeting:Tel: +81-6-6397-1888
March 18,2022
March 22,2022
March 18,2022
Yes
Yes (for securities analysts)（All amounts are rounded down to the nearest million yen）
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2021 (January 1, 2021 – December 31, 2021)（Percentages represent year-on-year changes）(1) Consolidated management performance (total)
Net sales

Fiscal year ended
Dec. 31, 2021
Fiscal year ended
Dec. 31, 2020（refer to）
comprehensive
incomeOperating profit

Millions ofyen％Millionsof yen％Millions ofyen％Millions ofyen％

14,436

－

1,870

－

2,607

－

1,829

－

9,660

－

1,037

－

1,469

－

1,062

－

Fiscal year ended
Dec. 31, 2020

1,062

Fiscal year ended
Dec. 31, 2021

1,850

Millions of yen－

Yen 100ths of a yen

Diluted net income pershare
Yen 100ths of a yen

25.72
14.95

Net income per share
Fiscal year ended
Dec. 31, 2021
Fiscal year ended
Dec. 31, 2020

Profit attributable toowners of parent

Ordinary profit

Return on equity

Millions ofyen－

Ordinary profit on Operating profit
total assets
to net sales

％

％

％

25.64

10.1

10.9

13.0

14.88

6.0

6.3

10.7

(Refer to) Equity in
Fiscal year ended
Fiscal year ended－ Millions of yen－ Millions of yen
earnings of affiliates
Dec. 31, 2021
Dec. 31, 2020（(Note)At the 37th Ordinary General Meeting of Shareholders on June 16, 2020, the Company approved a "Partial Amendment to the
Articles of Incorporation", according to which the fiscal year end will be changed to March 31 to December 31 as of fiscal 2020. As
a result, the fiscal year ending December 31, 2020, which is a transitional period for the change in fiscal year, is considered anine-month period from April 1, 2020 to December 31, 2020, and therefore, the percentage change from the previous fiscal year is
not shown.
(2) Consolidated financial position
Total assets
As of Dec 31, 2021
As of Dec 31, 2020
(Refer to) Net capital

Capital adequacy ratio

Net assets

Millions of yen
24,80923,096
As of Dec. 31, 2021

18,728Millions of yen
18,826
17,734

％
75.5
76.4

Millions of yen

As of Dec. 31, 2021

Net assets per share
Yen 100ths of a yen

263.12248.55
17,655

Millions of yen(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
Fiscal year ended
Dec. 31, 2021
Fiscal year ended
Dec. 31, 2020

Yen 100ths of a yen

Yen 100ths of a yen

Yen 100ths of a yen

Yen 100ths of a yen

1,712

(544)

(693)

8,289

442

(147)

(1,087)

7,982

－

1 －

2. State of dividends
PayoutDividendratio
on equity
Total dividends(consolidate (consolidatd)ed)Annual dividends

Fiscal year ended
Dec. 31, 2020
Fiscal year ended
Dec. 31, 2021
Fiscal year ended
Dec. 31, 2022
(estimate)

End of 1stquarter

End of 2ndquarter

End of 3rdquarter

End of
term

Total

Yen
100ths of
a yen

Yen
100ths of
a yen

Yen
100ths of
a yen

Yen
100ths of
a yen

Yen
100ths ofa yenMillions of
yen

％

％

－

4.00

－

6.00

10.00

710

62.8

4.0

－

4.00

－

7.00

11.00

782

42.8

4.3

－

4.00

－

7.00

11.00

43.0

3. Estimated consolidated results of the Fiscal Year Ending December 31, 2022 (January 1, 2022 – December 31, 2022)

Net salesFirst half
Full year（Percentages represent year-on-year changes）
Net
Profit attributable toOrdinary profit
incomeowners of parent
per share

Operating profit

Millionsof yen％Millionsof yen％Millionsof yen％Millions of
yen

％

Yen
100ths of
a yen

7,493
15,682

12.3
8.6

896
2,003

53.8
7.1

1,172
2,635

14.6
1.1

797
1,817

15.9
(0.6)

11.20
25.53

* Notes(1) Changes in significant subsidiaries during the period (changes in scope of consolidation): None
(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes to accounting policies accompanying revision to accounting standards, etc.
: None2) Changes to accounting policies other than 1.
: None3) Changes to estimates in accounting: None4) Revised restatement: None(3) Number of shares outstanding (ordinary stock)1.

Number of shares outstanding at endof term (including own stock)2.

Number of own shares at end of term

3.

Average number of shares outstanding
during term (quarterly total)

As of Dec. 31,
2021
As of Dec. 31,
2021
As of Dec. 31,
2021

74,514,800
shares3,335,617
shares71,111,841
shares

As of Dec. 31, 2020
As of Dec. 31, 2020
As of Dec. 31, 2020

74,514,800
shares3,478,870
shares71,086,475
shares(Refer to) Summary of Non-Consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2021 (January 1, 2021 – December 31, 2021)(1) Non-consolidated operating results
Net sales

Fiscal year ended
Dec. 31, 2021
Fiscal year ended
Dec. 31, 2020

（Percentages represent year-on-year changes）
Operating profit

Ordinary profit

Net income

Millions ofyen％Millions ofyen％Millionsof yen％Millions ofyen％

13,597

－

1,730

－

2,534

－

2,033

－

8,862

－

783

－

1,242

－

894

－

Net income per share

Diluted net income pershare
Yen 100ths of a yen

Yen 100ths of a yen
Fiscal year ended
28.60
12.53
Dec. 31, 2021
Fiscal year ended
12.59
12.53
Dec. 31, 2020
(Note) At the 37th Ordinary General Meeting of Shareholders on June 16, 2020, the Company approved a "Partial Amendment to
the Articles of Incorporation", according to which the fiscal year end will be changed to March 31 to December 31 as of fiscal
2020. As a result, the fiscal year ending December 31, 2020, which is a transitional period for the change in fiscal year, isconsidered a nine-month period from April 1, 2020 to December 31, 2020, and therefore, the percentage change from theprevious fiscal year is not shown.

－

2 －(2) Non-consolidated financial position
Total assets
As of Dec. 31, 2021
As of Dec. 31, 2020
(Refer to)
Shareholders’ equity

Net assets

Millions of yen
23,87021,606
As of Dec.
31, 2021

18,162

Capital adequacy ratio

Millions of yen
18,217
16,768Millions of
As of Dec.
31, 2020
yen

％
76.1
77.4
16,713

Net assets per share
Yen 100ths of a yen

255.16235.28Millions ofyen* The current financial report is not subject to audit by certified public accountants or audit firms.
* Explanation of appropriate use of earnings forecasts, and other special items
Note concerning forward-looking statements
Estimates of future performance in this report are based on assumptions judged to be valid and information

available to the Company’s management at the time the materials were prepared, but are not promises by theCompany regarding future performance. Actual results may differ significantly from these forecasts for a numberof reasons. Please refer to “1. Overview of Results of Operations, (4) Outlook” on page 5 for forecast assumptions
and notes of caution for usage.

－

3 －TABLE OF CONTENTS OF ATTACHED MATERIALS
1. OVERVIEW OF MANAGEMENT PERFORMANCE, ETC ----------------------------------------------------- 5(1) OVERVIEW OF MANAGEMENT PERFORMANCE IN THE CURRENT PERIOD --------------------------------------- 5(2) OVERVIEW OF FINANCIAL POSITION IN THE CURRENT PERIOD ------------------------------------------------- 6(3) CASH FLOWS ---------------------------------------------------------------------------------------------------- 6(4) OUTLOOK ------------------------------------------------------------------------------------------------------- 7
2. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDS ------------------------------ 7
3. CONSOLIDATED FINANCIAL STATEMENTS AND MAJOR EXPLANATORY NOTES ------------------- 8(1) CONSOLIDATED BALANCE SHEET ------------------------------------------------------------------------------- 8(2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME-------------------------------------------------------------------------------------------------------------------- 10(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ------------------------------------------------------ 13(4) CONSOLIDATED STATEMENT OF CASH FLOWS --------------------------------------------------------------- 15(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------------------- 17－

4 －1. Overview of management performance, etc.
Following the approval of the "Partial Amendment to the Articles of Incorporation" at the 37th Ordinary General
Meeting of Shareholders held on June 16, 2020, our Group changed its fiscal year-end from March 31 to December 31
from the fiscal year ending December 31, 2020.
For this reason, for comparisons in each business segment, year-on-year comparisons are not provided.

(1) Explanation regarding operating results
The Japanese economy continues to face severe conditions in the current consolidated fiscal year, and the future
outlook remains difficult to predict, although there are signs of a resumption of economic activity in society as a wholeamid progress in vaccinations against the coronavirus. In the pharmacy industry, a major customer of our Group, thenumber of prescriptions has decreased because of prolonged prescription due to the spread of COVID-19, and theenvironment surrounding small and medium-sized pharmacies is becoming more severe. In the medical (clinic)
industry, the number of patients has decreased due to restrictions in consultations of medical care subjects, and in thelong-term care/welfare-related industry, changes in the business environment of our customers, such as an increase of
temporary closures in outpatient care and short-term accommodation facilities, have had a considerable impact on ourGroup.
Under such circumstances, our Group has been focusing on web activities in addition to its usual business activities
while taking proper infection control measures.
In addition, as part of the introduction of ICT in the medical field, we have started to roll out a system that enables
My Number or health insurance card chips to be used at medical institution reception desks for checking credentials
online. Our Group has received orders from a large number of customers as planned, and the system has been in fulloperation since October, and we are gradually expanding the installation of the online qualification confirmation
system for our customers.
As a result, performance during the consolidated fiscal year concerned was 14,436 million yen in sales, 1,870 million
yen in operating profits, 2,607million yen in ordinary profits, and 1,829 million yen in this quarterly net income
belonging to parent company shareholders.
Both initial sales and billed sales increased on a Year-over-Year basis as a result of an increase in the number ofexisting systems sold. Furthermore, an expansion in the introduction of online qualification confirmation systems iscontributing to sales. On the other hand, Capitalization following the release of the “MAPs series” has decreased, andmanufacturing costs have increased due to higher maintenance costs.
Aiming to further promote understanding of the Company's management philosophy to all stakeholders amid thedemand for major changes, our Group has newly rebuilt its brand identity to increase corporate value and growth,and has decided to adopt its new "#TX Thanks Transformation" brand logo.
By segment results are as follows.
(ITS Systems and Related Business for Pharmacies)
In the IT systems and related business for pharmacies, initial sales are increasing due to an expansion in the
introduction of online qualification confirmation systems and an increase in the number of existing system sales.
Billing sales are also increasing as the number of customers’ increases. Consequently, IT Systems and Related
Business for Pharmacies for this consolidated fiscal year resulted in 11,228million yen in sales and 1,852million yen
in operating profits.
In addition, our Group has been launched its "EM Analysis Support" business support BI tool and "MAPs Option
BunseQI" service in October to provide total support with workload reduction and operation of pharmacies.
(IT Systems and Related Business for Clinics)
Regarding IT systems and related business for Clinics, in order to expand the sales channels nationwide, we aretaking a wide range of approaches by utilizing web marketing in addition to the conventional method of developing
the clinic market.
In addition to increase in initial sales due to full-scale expansion of online qualification confirmation packs and theincrease in sales of existing systems, the number of customers has steadily increased due to the introduction of “MAPs
for CLINIC,” etc., and billing sales are also steadily increasing.
Consequently, IT Systems and Related Business for Clinics for this consolidated fiscal year resulted in 1,957 million
yen in sales and 22 million yen in operating profits.
In addition, to meet the various needs of medical institutions that require a transition to ICT, our Group has released
the cloud-based electronic medical record software “MAPs for CLINIC with ORCA” that links with Japan Medical
Association standard receipt software ORCA provided by ORCA Management Organization Co., Ltd.
(IT Systems and Related Business for Long-term Care/Welfare)In the IT systems and related business for long-term care/welfare, in addition to the introduction of “Sukoyaka Sun”
by large-scale facilities, billing sales are steadily increasing due to an increase in the number of licenses.
－

5 －On the other hand, following the revision of the Long-term Care Act, we have invested in new system development
personnel to respond to the revision, resulting in a temporary decrease in new development of "MAPs for NURSING
CARE" and increased manufacturing costs.
IT Systems and Related Business for Long-term Care/Welfare for this this consolidated fiscal year resulted in 560
million yen in sales and 12 million yen in operating losses.
(Other businesses)
Following the change in the operating system of rental conference rooms, rental conference room sales are no longer
included in the calculation of sales and operating income of other businesses, and both sales and operating income
decreased. In addition, SG&A expenses increased due to the initial development of the cashless business.
Consequently, other business for this consolidated fiscal year resulted in 720 million yen in sales and 27 million yen
in operating losses.
（Segmented sales and operating profits and losses are the amounts before elimination of internal transactions
between segments.）
Our group has implemented various initiatives to reduce the burden on the environment, such as reducing CO2
emissions through the promotion of computerization in the medical and nursing care/welfare industries. We arepleased to announce our endorsement of the TCFD (Task Force on Climate-related Financial Disclosures)
recommendations and will continue striving to contribute to the maintenance and protection of the global environment
in our business affairs as well as the continued development of a sustainable society.
On February 26, 2021, the Group began discussing the possibility of forming a business alliance with Good Cycle
System Inc. In order to meet the ever-increasing demand for increased sophistication of pharmaceutical operations,
we have decided to acquire additional Good Cycle shares and strengthen our business alliance with them on an equity
method affiliate basis.

(2) Overview of financial position in the current period(Assets)
Current assets as of the end of the current consolidated fiscal year were 12,574 million yen, an increase of 1,383
million yen compared to the end of the previous consolidated fiscal year. This was mainly due to the steady businessperformance that was behind an increase of 551 million yen in accounts and acceptances receivable; 439 million yen
in merchandise and finished goods; and 306 million yen in cash and deposits. Fixed assets totaled 12,234 million yen,
an increase of 329 million yen from the end of the previous fiscal year. This was mainly due to an increase of 668
million yen in investment securities resulting from new acquisitions, and an increase of 176 million yen in softwarerelated temporary accounts resulting from progress in the full-scale development of MAPs for NURSING CARE.
However, the full-scale development of the pharmaceutical business support system MAPs for PHARMACY and theclinical business support system MAPs for CLINIC also caused decreases for software of 139 million yen due todepreciation decreases in investment real estate of 205 million yen, decreases in property, plant and equipment of 108
million yen and decreases in goodwill of 97 million yen.
As a result, total assets were 24,809 million yen, an increase of 1,712 million yen compared to the end of theprevious consolidated fiscal year.
(Liabilities)
Current liabilities at the end of the current fiscal year were 4,167 million yen, an increase of 690 million yen over the end of theprevious consolidated fiscal year. This was mainly due to an increase of 487 million yen in accrued tax payable and 212 million yen inother current liabilities which resulted from strong business performance. Long-term liabilities totaled 1,815 million yen, a decrease of
69 million yen from the end of the previous fiscal year. This was mainly due to a decrease of 36 million yen in reserve for productwarranties resulting from the implementation of the shift to manufacturer liability for maintenance service.
As a result, total liabilities were 5,983 million yen, an increase of 620 million yen compared to the end of theprevious consolidated fiscal year.
(Net assets)
Net assets at the end of the current consolidated fiscal year were 18,826 million yen, an increase of 1,091 million
yen over the end of the previous fiscal year. This was mainly due to an increase of 899 million yen in retained earnings
as a result of strong business performance, and increases of 63 million yen in the capital surplus and 70 million yen
in treasury stock resulting from disposal of treasury stock.
As a result, the capital adequacy ratio was 75.5% (compared to 76.4% at the end of the previous consolidated fiscal
year).

(3) Cash flows
The amount of cash and cash equivalents (hereinafter “funds”) during the consolidated fiscal year concerned
totaled 8,289 million yen, an increase of 306 million yen compared to the end of the previous consolidated fiscal year.
The status of each type of cash flow during the consolidated fiscal year concerned as well as their main factors are
as follows.
－

6 －(Net cash provided by (used in) operating activities)
Net cash earned through operating activities amounted to 1,712 million yen. This is mainly due to the fact that
income before income taxes and minority interests was 2,599 million yen as a result of the strong businessperformance in the current fiscal year, but the fact that the company paid 421 million yen in income taxes was also afactor.
(Net cash provided by (used in) investing activities)
Net cash used in investing activities amounted to 544 million yen. The 1,024 million yen in income from leasing ofinvestment real estate was a factor however, this was mainly due to 670 million yen in purchases of investment
securities, 479 million yen in purchases of software development related intangible fixed assets, and 417 million yen
in lending.
(Net cash provided by (used in) financial activities)
Net cash used in financing activities amounted to 693 million yen. This was mainly due to cash dividends paid of
714 million yen.

(4) Outlook
As for the future outlook, due to the impacts of the coronavirus disease, there is an urgent need for structuralreform in the medical industry. With the revision of the medical care system in April 2022, clinics and pharmacies
are expected to play greater role in care for local residents in terms of promoting measures against coronavirus
infection and DX (digital transformation) for the medical field. In addition, with tough conditions for NHI drug prices
continuing and pharmacies shifting from physical to human services, there is increasing demand for services morecentered on the patient.
The government has announced its policy of thoroughly promoting ICT in the medical and other fields, and it isexpected that the need for information sharing initiatives among other professions, including nursing care andwelfare, will continue to increase. To this end, the Group is committed to providing enhanced support to medical andnursing care/welfare providers through cloud-based information sharing that leverages the "MAPs Series" of common
information system platforms to improve safety and operational efficiency.
Today, February 9, 2022, we announced our new medium-term management plan (three-year plan). We will focus
on expanding our market share for future business development, developing human resources capable of assuming
the reins of leadership of our group, and enhancing our sustainability management.
The aforementioned performance forecasts are calculated based on information available as of the date of releaseof this document. Actual performance may vary from predicted values due to various future factors.

2. Basic Approach to the Selection of Accounting Standards
The EM SYSTEMS Group currently applies Japanese accounting standards for its consolidated financial
statements. We will take suitable actions with regard to the application of International Financial ReportingStandards (IFRS) by taking into account associated factors in Japan and other countries.

－

7 －3. Consolidated financial statements and major explanatory notes(1) Consolidated balance sheet(Units: millions of yen)
As of December 31, 2020

As of December 31, 2021

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise and products
Raw materials and supplies
OthersAllowance for bad debts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures (net)Land
Lease assets
Accumulated depreciation
Lease assets (net)
Rental assets
Accumulated depreciation
Rental assets (net)
Construction in progress
Others
Accumulated depreciation
Others (net)Total tangible fixed assets
Intangible fixed assets
Software
Software in progress
Goodwill
OthersTotal intangible fixed assets
Investments and other assets
Investment securities
Investment real estate
Accumulated depreciation
Investment real estate (net)
Allowance for bad debts
Deferred tax asset
Net defined benefit asset
Other
Allowance for bad debts
Total investments and other assets
Total fixed assets
Total assets

－

8 －

7,982
2,004
248
0
968
(14)
11,191

8,289
2,555
688
0
1,040
(0)
12,574

1,393
(733)
660
525
122
(109)
13
49
(44)
5
－
841
(603)
237
1,441

1,359
(754)
604
474
15
(10)
4
48
(45)
2
72
848
(674)
174
1,333

1,532
555
383
119
2,591

1,393
732
285
109
2,521

9
10,444(3,505)
6,938
142
519
120
143
(0)
7,872
11,90523,096677
10,527(3,794)
6,733
117
558
29
280
(15)
8,380
12,23424,809(Units: millions of yen)
As of December 31, 2020

Liabilities
Current liabilities
Notes and accounts payable
Current portion of long-term loans payable
Accounts payable-other
Lease obligations
Income taxes payable, etc.
Accrued consumption taxes
Provision for bonuses
Provision for points card certificates
OthersTotal current liabilities
Non-current liabilities
Lease obligations
Net defined benefit liability
Provision for product warranties
Long-term guarantee deposited
Long-term Accounts payable-other
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholder's equity
Capital stock
Capital surplus balance
Retained earnings
Treasury stock
Total shareholder's equity
Cumulative amount of other comprehensive
incomeForeign currency translation adjustments
Remeasurements of defined benefit plans
Total other cumulative comprehensive
incomeSubscription rights to shares
Non-Controlling Interest
Total net assets
Total liabilities and net assets－

9 －As of December 31, 2021

833
－
506
24
176
150
344
3
1,435
3,476

852
－
465
4
663
125
403
4
1,648
4,167

5
1,065
86
728
－
－
1,885
5,362

1
1,039
50
724
－
－
1,815
5,983

2,785
3,283
13,216(1,610)17,675

2,785
3,347
14,116(1,539)18,708

31
(51)

69
(49)

(19)

19

55
23
17,73423,09655
42
18,82624,809(2) Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)(Units: millions of yen)Previous fiscal year
(From April 1, 2020
To December 31, 2020)

Current fiscal year
(From January 1, 2021
To December 31, 2021)

9,660
4,757
4,903

14,436
7,345
7,090

14
18
99
(2)
(15)
202
1,596
233
279
65
85
323
66
53
31
73
161
18
559

22
28
111
1
18
277
2,122
245
317
94
98
405
111
70
67
97
209
20
898

3,865

5,219

1,037

1,870

1
730
18
750

192
1,019
7
1,219

0
0
307
－
11
318
1,469

0
0
465
－
16
482
2,607

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Promotion expenses
Packing and transportation expenses
Advertising expenses
Provision of allowance for doubtful accounts
Provision for product warranties
Directors’ compensations
Salaries and allowances
Bonuses
Provision for bonuses
Share-based compensation expenses
Retirement benefit expenses
Legal welfare expenses
Traveling and transportation expenses
Communication expenses
Depreciation
Amortization of goodwill
Rents
Research and development expenses
Other
Total selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Rent income of real estate
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Rent expenses on real estates
Amortization of share issuance cost
Miscellaneous loss
Total non-operating expenses
Ordinary profit

－

10 －

(Units: millions of yen)Previous fiscal year
(From April 1, 2020
To December 31, 2020)

Current fiscal year
(From January 1, 2021
To December 31, 2021)

40
15
－
55

－
－
－
0

2
0
－
1
4
1,520
481
(16)
465
1,055

8
－
－
0
8
2,599
828
(40)
787
1,811

(6)

(17)

1,062

1,829

Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Gain on negative goodwill
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of non-current assets
Impairment loss
Loss on cancellation of leases
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Profit(Loss) attributable to Non-controllingshareholders
Profit attributable to owners of parent

－

11 －

（Consolidated statements of comprehensive income）(Units: millions of yen)Previous fiscal year
(From April 1, 2020
To December 31, 2020)

Current fiscal year
(From January 1, 2021
To December 31, 2021)

1,055

1,811

4
2
6
1,062

37
1
39
1,850

1,068

1,868

(6)

(17)

Net income
Other comprehensive income
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income（Breakdown）
Comprehensive income concerning parent
company shareholders
Comprehensive income concerning
non-controlling shareholders

－

12 －

(3) Consolidated Statement of Changes in Equity
Previous fiscal year (From April 1st, 2020 to December 31st, 2020)(Units: millions of yen)
Shareholders’ equity

Capital stock Capital surplus
Balance at beginning of current
period

2,700

3,185

84

84

Retainedearnings

Treasury shares

12,864（1,125)

Total
shareholders’equity17,625

Changes of items during period
Exercise of share acquisitionrights168

Dividends of surplus

（710)

（710)

Profit attributable to owners ofparent

1,062

1,062

Purchase of treasury shares
Disposal of treasury shares

13

（499)

（499)

15

29

Change in ownership interest ofparent due to transactions with
non-controlling interests.
Change of scope of consolidation
Net changes of items other thanshareholders’ equity
Total changes of items during
period

84

97

351

（484)

49

Balance at end of current period

2,785

3,283

13,216（1,610)17,675

Accumulated other comprehensive income
Total
Remeasuremen accumulated
ts of defined otherbenefit plans comprehensiv
e income

Foreigncurrencytranslation
adjustment
Balance at beginning of current
period

27

（53)

（26)

Share
acquisitionrights91

Non-controllinginterests

Total net assets-

17,691

Changes of items during period
Exercise of share acquisitionrights168

Dividends of surplus（710)

Profit attributable to ownersof parent

1,062

Purchase of treasury shares（499)

Disposal of treasury shares

29

Change in ownership interestof parent due to transactions
with non-controlling interests.
Change of scope of
consolidation
Net changes of items otherthan shareholders’ equity

4

2

6

（36)

23

43

Total changes of items during
period

4

2

6

（36)

23

43

Balance at end of current period

31

（51)

（19)

55

23

17,734－13 －Current fiscal year (From January 1st, 2021 to December 31st, 2021)(Units: millions of yen)
Shareholders’ equity

Capital stock Capital surplus
Balance at beginning of current
period

2,785

3,283

Retainedearnings

Treasury shares

13,216（1,610)Total
shareholders’equity17,675

Changes of items during period
Exercise of share acquisitionrights-Dividends of surplus

（710)

（710)

Profit attributable to ownersof parent

1,829

1,829

Purchase of treasury shares
Disposal of treasury shares

54

Change in ownership interestof parent due to transactions
with non-controlling interests.

8

（0)

（0)

70

125
8

Change of scope of
consolidation

(219)

(219)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

-

63

899

70

1,033

2,785

3,347

14,116（1,539)18,708

ShareacquisitionrightsNon-controllinginterests

Total net assets

23

17,734

Accumulated other comprehensive income
Foreigncurrencytranslation
adjustment
Balance at beginning of current
period31

Total
Remeasuremen accumulated
ts of defined otherbenefit plans comprehensiv
e income
（51)

（19)

55

Changes of items during period
Exercise of share acquisitionrights-Dividends of surplus（710)

Profit attributable to ownersof parent

1,829

Purchase of treasury shares（0)

Disposal of treasury shares

125

Change in ownership interestof parent due to transactions
with non-controlling interests.

8

Change of scope of
consolidation(219)

Net changes of items otherthan shareholders’ equity

37

1

39

-

18

57

Total changes of items during
period

37

1

39

-

18

1,091

Balance at end of current period

69

（49)

19

55

42

18,826－14 －(4) Consolidated Statement of Cash Flows(Units: millions of yen)Previous fiscal year
(From April 1, 2020
To December 31, 2020)

Current fiscal year
(From January 1, 2021
To December 31, 2021)

1,520
610
73
－
－
(4)
45

2,599
876
97
－
－
90
(25)

(59)

(36)

(13)

58

(0)

0

(2)

1

(1)
(730)
133
0
(40)
0
2
67
(15)

(192)
(1,019)
192
0
(0)
－
－
8
94
－

115

(546)

(50)
(487)

(439)
51

(123)

18

50
150
31
971
1
(0)
(530)
442

(25)
168
(30)
1,940
192
(0)
(421)
1,712

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Gain on negative goodwill
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for productwarranties
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Rent income of real estate
Expenses of real estate rentInterest expenses
profit on sale of securities(profit)
profit on sale of non-current assets
Loss on sale of non-current assets
Loss on retirement of non-current assets
Share-based compensation expenses
Gain on reversal of share acquisition rights
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

－

15 －

(Units: millions of yen)Previous fiscal year
(From April 1, 2020
To December 31, 2020)

Current fiscal year
(From January 1, 2021
To December 31, 2021)

(373)

(116)

89

－

(475)
－

(479)
(670)

－

2

731
(133)
21
(19)
6
－
6
(147)

1,024
(192)
293
(417)
76
(62)
(2)
(544)

(34)
(23)
147
(499)
30
(707)
(1,087)

－
(24)
－
(0)
45
(714)
(693)

4

35

(787)
8,770

509
7,982

－

(202)

7,982

8,289

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from purchase of investments in
subsidiaries resulting in change in scope of
consolidation
Proceeds from rental of real estate for investment
Payments for rental of real estate for investment
Collection of loans receivable
Payments of loans receivable
Proceeds from guarantee deposits received
Repayments of guarantee deposits received
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from issuance of common shares
Purchase of treasury shares
Cash from Non-controlling shareholders
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

－

16 －

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Segment and Other Information
Segment information
1. Overview of reportable segment
Segments used for financial reporting are the EM SYSTEMS Group’s constituent units forwhich separate financial information is available and for which the Board of Directors performs
periodic studies for the purposes of determining the allocation of resources and evaluating
performance.
The EM SYSTEMS Group consists of business units organized according to product categories
and business operations that are divided among different companies. For the purpose of financial
reporting, there are four reportable segments: IT Systems and Related Business for Pharmacies,
IT Systems and Related Business for Clinics, IT Systems for Long-term care/welfare and Other
Businesses.
Major products for each reportable segment are as follows:
Reportable segment

Major products

IT Systems and Related
Business for Pharmacies

Development and sales of systems for pharmacies

IT Systems and Related
Business for Clinics

Development and sales of systems for clinics

IT Systems for Long-termcare/welfare

Development and sales of systems for nursing care service providers

Other Businesses

Management of pharmacies, operation of rental conference rooms, andcashless projects

2. Calculation methods for net sales, profit/loss, assets, liabilities and other items for each reportable segment
The accounting methods for reportable segments comply with accounting policies used for the
preparation of the consolidated financial statements.
Profit for reportable segments is operating profit figures.
Inter-segment sales and transfers are based on prevailing market prices.

－

17 －

3. Information related to net sales, profit/loss, assets, liabilities and other items for each reportable segment
Previous fiscal year (From April 1st, 2020 to December 31st, 2020)(Units: millions of yen)

Reportable segment

Amounts
recorded in

IT Systems

IT Systems

and Related

and Related

Business for

Business for

Pharmacies

Clinics

IT Systems
for Long-termcare/welfare

Other
Businesses

Adjustment

Total

consolidated
financialstatements(Note)Net sales
External sales

7,446

1,296

376

574

9,694

(33)

9,660

3

－

－

1

4

(4)

－

7,450

1,296

376

576

9,699

(38)

9,660

Segment profit

1,079

(35)

(14)

(7)

1,020

16

1,037

Segment assets

3,404

889

585

958

5,839

17,25723,096

Depreciation

239

100

84

2

427

173

601

Increase in property, plant andequipment and intangible assets

378

24

180

10

593

－

593

Inter-segment sales and transfers
Total

Other items

Note: Segment profit is adjusted to be consistent with operating profit recorded in the consolidated financial
statements.
Current fiscal year (From January 1st, 2021 to December 31st, 2021)(Units: millions of yen)

Reportable segment

Amounts
recorded in

IT Systems

IT Systems

and Related

and Related

Business for

Business for

Pharmacies

Clinics

IT Systems forLong-termcare/welfare

Other
Businesses

Adjustment

Total

consolidated
financialstatements(Note)Net sales
External sales

11,225

1,957

560

692

14,436－

14,436

2

－

－

28

30

(30)

－

11,228

1,957

560

720

14,467(30)

14,436

Segment profit

1,852

22

(12)

(27)

1,835

35

1,870

Segment assets

4,370

1,027

984

660

7,042

17,76624,809Depreciation

133

125

63

4

327

548

875

Increase in property, plant andequipment and intangible assets

144

15

274

4

438

190

629

Inter-segment sales and transfers
Total

Other items

Note: Segment profit is adjusted to be consistent with operating profit recorded in the consolidated financial
statements.

－

18 －

4. Reconciliation of amounts recorded in consolidated financial statements with total reportable segments(Units: millions of yen)

Net sales

Previous fiscal year

Total for reportable segments
Transfer to non-operating income
Eliminations for inter-segment
transactions
Net sales on the consolidated
financial statements

Current fiscal year
9,699

14,467

(33)

－

(4)

(30)

9,660

14,436(Units: millions of yen)

ProfitPrevious fiscal year

Total for reportable segments
Transfer to non-operating income
Eliminations for inter-segment
transactions
Net sales on the consolidated
financial statements

Current fiscal year
1,020

1,835

(13)

－

30

35

1,037

1,870
(Units: millions of yen)

AssetsPrevious fiscal year

Total for reportable segments

Current fiscal year
5,839

7,042

Transfer to non-operating income
17,904
18,312Eliminations for inter-segment
(647)
(546)
transactions
Net sales on the consolidated
23,09624,809financial statements
Note: Corporate assets mainly include cash and deposits and real estate for investment that are not attributableto reportable segments.
(Units: millions of yen)Amounts recorded inconsolidated financial
statements

Adjustment

Total reportable segment
Other items
Previous
fiscal year

Current
fiscal year

Previous
fiscal year

Current
fiscal year

Previous
fiscal year

Current
fiscal year

Depreciation

427

327

173

548

601

875

Increase in property, plantand equipment andintangible assets

593

438

－

190

593

629

Related information
Previous fiscal year (Apr. 1, 2020 – December. 31, 2020)
1. Information about products and services
Descriptions of products and services are omitted because this information is presented in the segment
information.
2. Geographical information(1) Net sales
This information is omitted because sales to external customers in Japan accounted for more than 90% of
net sales in the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment in Japan exceeded 90% of property,
plant and equipment in the consolidated balance sheet.
3. Information of specific major customer
This information is omitted because no specific customers accounted for 10% or more of net sales in the
consolidated statement of income.
－19 －Current fiscal year (January. 1, 2021 – December. 31, 2021)
1. Information about products and services
Descriptions of products and services are omitted because this information is presented in the segment
information.
2. Geographical information(1) Net sales
This information is omitted because sales to external customers in Japan accounted for more than 90% of
net sales in the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment in Japan exceeded 90% of property,
plant and equipment in the consolidated balance sheet.
3. Information of specific major customer
This information is omitted because no specific customers accounted for 10% or more of net sales in the
consolidated statement of income.
【Impairment loss of non-current assets by reportable segment】
Previous fiscal year (Apr. 1, 2020 – Dec. 31, 2020)
Not applicable.
Current fiscal year (Jan. 1, 2021 – Dec. 31, 2021)
Not applicable.
【Amortization of goodwill and unamortized balance by reportable segment】
Previous fiscal year (Apr. 1, 2020 – Dec. 31, 2020)(Units: millions of yen)Amortization forthe period

IT Systems andRelated Businessfor Pharmacies

IT Systems andRelated Businessfor Clinics--

IT Systems forLong-termcare/welfare

Other Businesses

Total

56

16

73

241

142

383

Unamortizedbalance at theperiod-end
Current fiscal year (Jan. 1, 2021 – Dec. 31, 2021)(Units: millions of yen)Amortization forthe period
Unamortizedbalance at the

IT Systems andRelated Businessfor Pharmacies

IT Systems andRelated Businessfor Clinics

-

-

75

22

97

-

-

166

119

285

IT Systems forLong-termcare/welfare

period-end【Gain on negative goodwill by reportable segment】
Previous fiscal year (Apr. 1, 2020 – Dec. 31, 2020)
Not applicable.
Current fiscal year (Jan. 1, 2021 – Dec. 31, 2021)
Not applicable.

－

20 －

Other Businesses

Total

（Per Share Information）(From(Units: Yen 100ths of a yen)Previous fiscal year
April 1, 2020 To December 31, 2020)(From

Current fiscal year
January 1, 2021 To December 31, 2021)

Net assets per share

248.55

Net247.30
assets per share
234.53263.12

Net income per share

14.95

Net income
19.74 per share
27.87

25.72

Diluted net income per share

14.88

Diluted19.47
net income27.46
per share

25.64

Notes: 1. The basis of calculating net income per share and diluted net income per share is as follows:(Units: millions of yen)Previous fiscal year
(From April 1, 2020
To December 31, 2020)

Current fiscal year
(From January 1, 2021
To December 31, 2021)

Net income per share
Profit attributable to owners of parent
Amounts not available to common stock
shareholders
Profit attributable to owners of parent
available to common stock
Average number of shares of common stock
outstanding during the period (Shares)

1,062

1,829

－

－

1,062

1,829

71,086,475

71,111,841－－

325,921

222,934

Diluted net income per share
Adjusted profit attributable to owners ofparentIncrease in the number of shares ofcommon stock (Shares)－

Summary of potential stock not included in－

the calculation of “Diluted net income pershare” since there was no dilutive effect（Subsequent Events）(Acquisition of investment securities)
Based on the resolution of the Board of Directors' meeting held on December 13, 2021, the Company acquired additional shares ofGood Cycle System Inc. on January 5, 2022, making the company an equity-method affiliate.
(1) Purpose: Policy investment(2) Date of stock acquisition: January 5, 2022
(3) Outline of Good Cycle System Inc.
① Date of establishment: December 24, 2004
② Capital: 254 million yen③ Address: Shibuya Ward, Tokyo④ Representative: Tomoaki Endo, Representative Director⑤ Main areas of expertise:
Design, development, sales and maintenance of insurance pharmacy support systems
Patient support services and PHR services for pharmaceutical companies
Support services for improving pharmacist capability(Acquisition of treasury stock)
At a meeting of the Board of Directors held on February 9, 2022, the Company passed a resolution on mattersrelated to the acquisition of its own shares in accordance with the provisions of Article 156 of the Companies Act,－

21 －

with a replacement of the terms pursuant to the provisions of Article 165, Paragraph 3 of the same act.
1.Reasons for the acquisition of treasury stock
To implement a flexible capital policy in response to changes in the business environment and to improve capitalefficiency
2.Details of matters related to the acquisition(1) Type of shares to be acquired: Common stock of the Company(2) Total number of shares to be acquired: 900,000 shares (upper limit)(1.26% of the total number of shares issued excluding treasury stock)(3) Total acquisition cost: 500,000,000 yen (upper limit)(4) Period of acquisition: February 10, 2022 - August 31, 2022
(5) Method of acquisition: Market buying, Tokyo Stock ExchangeThis financial report is solely a translation of the Company’s Kessan Tanshin (including attachments) in Japanese,
which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for theconvenience of readers who prefer an English translation.

－

22 －