Launch of a new healthcare-related business through Health Tech

「Based on the outline of this strategy, 株式会社フリービットEPARKヘルスケア (now Kusurinomadoguchi,Inc.) will be removed from the Group through this transfer. This decision followed structural reforms after it became a subsidiary, the establishment of a framework for data integration, and consideration of the need to secure agility in the coming era of the new normal and the future impact on our consolidated financial statements.」

「Although the Health Tech business as a whole had remained loss-making since its launch in 2016, the business continued to expand through the acquisition of users of the medication notebook app and businesses using services for pharmacies at フリービットEPARKヘルスケア. Profit also improved through the reorganisation of unprofitable businesses, resulting in revenue of ¥1,165.080 million, up 59.7% year on year, and segment profit of ¥130.435 million, compared with a segment loss of ¥136.576 million in the same quarter of the previous year.」

「In addition to continued investment aimed at acquiring users of the medication notebook app offered by フリービットEPARKヘルスケア and businesses using solution services for dispensing pharmacies, the launch of the pharmacy systems business, which manages surplus pharmaceutical inventory and improves pharmacy productivity, led to significant business expansion. Revenue reached ¥3,513.881 million, up 17.4% from the previous consolidated fiscal year.」

「The business expanded significantly as a result of continued investment aimed at acquiring users of the medication notebook app and businesses using solution services for dispensing pharmacies, together with the launch of the pharmacy systems business, which manages surplus pharmaceutical inventory and improves pharmacy productivity. The Group also strengthened synergies and began offering an “Medication Information Linkage Function” connecting its cloud-based nursing-care record system with フリービットEPARKヘルスケア.」

「The acquisition of users of the medication notebook app and businesses using solution services for dispensing pharmacies progressed steadily, and the resulting significant expansion of the business lifted revenue to ¥1,474.287 million, up 5.2% year on year. Meanwhile, the segment loss was ¥281.806 million, compared with a segment loss of ¥167.302 million in the same quarter of the previous year, due to investment in expanding the functions of the nursing-care record system and upfront investment in new businesses.」

「The business expanded significantly through the acquisition of users of the medication notebook app and businesses using solution services for pharmacies, with revenue reaching ¥729.592 million, up 14.9% year on year. The segment loss was ¥136.576 million, compared with a segment loss of ¥112.124 million in the same quarter of the previous year.」

「As a result of continued investment aimed at acquiring users of the medication notebook app offered by フリービットEPARKヘルスケア and businesses using solution services for dispensing pharmacies, the business expanded significantly, with revenue reaching ¥2,993.990 million, up 82.9% from the previous consolidated fiscal year. A substantial improvement in the profit structure reduced the segment loss to ¥109.307 million, compared with a segment loss of ¥527.220 million in the previous consolidated fiscal year. Although factors including the medical information platform resulted in a segment loss, フリービットEPARKヘルスケア has become profitable as a result of steady profit improvement.」

「As a result of continued investment aimed at acquiring users of the medication notebook app and businesses using solution services for dispensing pharmacies, the business expanded significantly, with revenue reaching ¥2,179.162 million, up 107.2% year on year. A substantial improvement in the profit structure also reduced the segment loss to ¥93.051 million, compared with a segment loss of ¥511.565 million in the same quarter of the previous year.」

「As a result of continued investment aimed at acquiring users of the medication notebook app and businesses using solution services for dispensing pharmacies, the business expanded significantly, with revenue reaching ¥1,401.471 million, up 164.6% year on year. The profit structure also improved substantially, and the segment loss narrowed to ¥70.445 million, compared with a segment loss of ¥490.518 million in the same quarter of the previous year.」

「Based on a resolution of the Board of Directors meeting held on 8 May 2018, the Company acquired the nursing care records system business from ティアックオンキヨーソリューションズ株式会社 on 1 June of the same year.」

「Due mainly to making フリービットEPARKヘルスケア a consolidated subsidiary in the previous consolidated fiscal year for the purpose of providing solution services for pharmacies, where business expansion was expected, sales were ¥1,051.668 million, up 894.1% year on year, and the segment loss was ¥511.565 million, compared with a segment loss of ¥168.783 million in the same quarter of the previous year. The main factor behind the year-on-year difference was the consolidation of the subsidiary. However, フリービットEPARKヘルスケア had already achieved profitability in the third-quarter consolidated accounting period, and its earnings structure is improving steadily.」

「⑤ Health Tech business As a result of making フリービットEPARKヘルスケア a consolidated subsidiary in the previous consolidated fiscal year for the purpose of providing solution services for pharmacies, where business expansion was expected through the use of the Group's technological capabilities and business resources, sales were ¥529.691 million and the segment loss was ¥490.518 million.」

「⑤ Health Tech business As a result of making フリービットEPARKヘルスケア a consolidated subsidiary in the previous consolidated fiscal year for the purpose of providing solution services for pharmacies, where business expansion was expected through the use of the Group's technological capabilities and business resources, sales were ¥181.603 million and the segment loss was ¥196.993 million.」

「To pursue medium- to long-term business expansion in Health Tech, the Company made フリービットEPARKヘルスケア a consolidated subsidiary as a business categorized as a growth investment and began providing solution services for pharmacies, where business expansion was expected through the effective use of the Group's technological capabilities and business resources.」

「In the lifestyle revolution domain, which the Company is considering entering as a new field, it made 株式会社EPARKヘルスケア, now 株式会社フリービットEPARKヘルスケア, a consolidated subsidiary to pursue medium- to long-term business expansion in Health Tech, and began providing solution services for pharmacies, where business expansion was expected through the effective use of the Group's technological capabilities and business resources.」

「In the lifestyle domain, the Company made 株式会社EPARKヘルスケア a consolidated subsidiary to pursue medium- to long-term business expansion in Health Tech, and launched solution services for pharmacies, where business expansion was expected through the effective use of the Group's technological capabilities and business resources. Business combination date: 16 September 2016 Voting rights ratio held immediately before the acquisition: 19.4% Voting rights ratio additionally acquired on the business combination date: 28.1% Voting rights ratio after the acquisition: 47.5%」

「In its medium-term business policy, SiLK VISION 2020, the Group positioned Health Tech, together with IoT and 不動産Tech, as one of its priority areas for medium- to long-term business expansion and is promoting the launch of new healthcare-related businesses. As part of this effort, it decided to make 株式会社EPARKヘルスケア a subsidiary. Business combination date: 16 September 2016 (scheduled completion) Voting rights ratio additionally acquired through the business combination: 28.1% Voting rights ratio after the acquisition: 47.5%」