ケアネット（2150） – [Delayed]Business Plans and Matters Related to High Growth Potential Progress Report for the Three Months Ended March 31, 2022

CareNet, Inc.Business Plans and Matters Related to High Growth PotentialProgress Report for the Three Months Ended March 31, 2022Katsuhiro Fujii, PresidentContents1. Business Model2. Market Environment – Pharmaceutical DX Business3. Our Competitiveness4. Growth Strategy5. Annual Plans and Progress6. Risk Information11. Business Model2. Market Environment – Pharmaceutical DX Business[Contents]1. Business Model3. Our Competitiveness4. Growth Strategy5. Annual Plans and Progress6. Risk InformationCorporate ProfileNameAddressCareNet, Inc.EstablishedJuly 1996Employees168 (as of March 31, 2022)Sumitomo Fudosan Chiyoda Fujimi Bldg., 8-19, Fujimi 1-chome Chiyoda-ku, Tokyo, Japan1. Business ModelBusiness activitiesMedical contents services for doctors and medical professionals,Medical and pharmaceutical business support for pharmaceutical companiesBusiness ActivitiesCorporate PhilosophyImprovement of future medical care by information technology and imaginginformation thatisCareNet distributes practicalusefulin routine clinical practice to doctors andother medical professionals via the Internet andprovides pharmaceutical companies with solutionsfor the effective communication of pharmaceuticalinformation.Striving to create a sustainable healthy society in the digital ageCareNet contributes the creation of a sustainableis healthy and offers comfortablesociety thatworking environments for both the recipients andproviders of medical care by constantly evolving ourbusinesses through technology and enthusiasm.3Our History1. Business Model■ Founded as Japan’s first medical education TV station and transitioned to an Internet-based business model. CareNet is currently expanding its business in response to the growing number of doctor members.CareNet TV Medical Ch.® (Satellite broadcasting)Medical content services(Transitioned to Internet-based business model)Pharmaceutical sales support services Medical platform businessPharmaceutical DX businessDoctor membersexceeds 100,000Launched CareNeTV on the InternetEstablished Macromill CarenetOpened “MEDuLite”Business alliance with WebMDDoctor members exceeds 150,000Doctor members exceeds 190,000Doctor members exceeds 200,000Acquired AD MedicaOpened “Doctor’sPicks”Business alliance with University of Occupational and Environmental Health, Tokio MarinetransitionBusiness Number of doctor members(Ten thousand)20Developed Japan’s first online pharmaceutical promotion “eDetailing®”Opened CareNet.comListed on TSE Mothers1510Opened Japan’s first TV station for medical care, “CareNet TV Medical Ch.®”Founded199619982000200420072010201320142015201620182019202020212022InitializationDevelopmentActive progress4Our Business Model■ CareNet develops a variety of businesses that utilize the “doctor platform” oriented around CareNet.com.1. Business ModelFee paymentPharmaceutical companiesSupport business/marketingCareNet.comPharmaceutical DX businessProvide pharmaceutical informationMedical platform businessFee paymentProvide medical education contentsDoctorsMedical professionalsFee paymentHospitalsIntroduce doctorsOutplacement service companiesFrom the fiscal year ending December 31, 2022, the business segments have been reorganized from the three segments of “Pharmaceutical DX business,” “Medical platform business,” and “Consolidated growth business” into the two segments of “Pharmaceutical DX business” and “Medical platform business.”The “Consolidated growth business” had been managed as one of the segments since the previous fiscal year for the purpose of distinctly presenting operating results and other information of consolidated subsidiaries that are expected to grow in the future. The consolidated subsidiaries showed growth in the previous consolidated fiscal year, and in order to make clear our policy to strengthen coordination between the Company and the consolidated subsidiaries and advance business development and sales as a collective CareNet group going forward, we have determined to incorporate each of the consolidated subsidiaries into either the “Pharmaceutical DX business” or the “Medical platform business” and abolish the “Consolidated growth business” segment. Specifically, of the six consolidated subsidiaries, the five companies that engage in sales operations, Scientific Communication Labo. inc., Asclepia Co., Ltd., Healthcare Consulting Inc. and AD Medica Inc., have been incorporated into the “Pharmaceutical DX business,” and CareNet Works Design, Inc. into the “Medical platform business.”5CareNet.com1. Business ModelMedical information website used by more than 400,000 medical professionals MembersDoctors who are members400,425196,441(as of March 31, 2022)“Medical contents” for immediate use in the fieldAn abundant selection of content is available for immediate use inclinicalincluding videos of procedures, patientinstructions, and explanations of relevant guidelines.settings,International research and news on medical careCarefully selected articles published in leading internationaljournals are summarized in Japanese and are made availabletogether with the latest medical news in Japan to facilitate quickand easy understanding of the current state of medical care.6Pharmaceutical DX Business1. Business ModelBusiness model for the Pharmaceutical DX business■ CareNet has endeavored to spread the appropriate use of new medicine from pharmaceutical companies through use of the doctor platform. We have partnerships with over 70 pharmaceutical companies, growing this into the core business of the Company.Provide informationDoctor membersDoctor platform (CareNet.com, etc.)Consignment contractFacility DBPharmaceutical companiesResponses/logsCareNet.comDoctor DBReports on resultsMain services of the Pharmaceutical DX businessIT solution for connecting doctors and pharmaceutical companies: MRPlus®One of our core services that broadcasts video content created from the perspective that the involvement of doctors is needed to target other doctors, enabling the analysis of doctors’ responses while creating opportunities for engagement with MRs. More than 50 pharmaceutical companies have adopted this service.Online livestreams of seminars by Key Opinion Leaders (KOLs1) available nationwide: Online seminarsBusy doctors can watch KOL seminars without having to leave the office. Online livestreaming is a very effective way to quickly broadcast information about new treatments nationwide. Over 500 seminars are conducted annually, and this is a core service together with MRPlus®.1 KOL is an abbreviation for key opinion leader. KOLs refer to doctors who have wide influence in the medical industry. As part of sales promotion activities for their products, pharmaceutical companies reach out to KOLs, who are medical experts, in order to spread the latest pharmaceutical information. KOLs include doctors who are authorities in academic societies, professors at university hospitals, and directors of large hospitals. 7Medical Platform BusinessMain service：CareNeTVOn-demand clinical videos for self-study by medical professionals1. Business Model有料会員数Paying members6,042(As of March 31, 2022)About 20 years producing medical education programs As Japan’s first TV station specializing in contentformedical professionals (satellite broadcasting ended inMarch 2011, switching to Internet distribution), CareNet hasabundant experience in producing medical educationprograms, and CareNeTV delivers programs that cater tothe specific learning needs of medical professionals.Complete lineup of programsMore than 2,000 programs are available, with approx. 10new programs being released every month. Packed withinformation from leading lecturers whouplifting and usefulare active on the front lines of clinical practice! Designedaround programs for improving clinical skills in everythingisfrom primary care to specialized fields, video contentavailable for a variety of genres, including preparation formedical specialist exams, presentations, English, andstatistics.Fee・Monthly/5,500 yen・PPV/330 yen -8Our Profit Structure (1)－Net Sales1. Business Model(Million yen)9000Net Sales (by segment)医薬DXPharmaceutical DXメディカルプラットフォームMedical platform8,0045,3042,8542,9023,2688000700060005000400030002000100002017/12期2018/12期2019/12期2020/12期2021/12期• Achieved continuous growth in income and profit for seven consecutive years in FY2021. We have been growing by •over 40% year-over-year for the past two fiscal years.The “Pharmaceutical DX business” accounts for most sales. Growth is in tandem with expansion of the Pharmaceutical DX business.9Our Profit Structure (1)－Performance by Segment1. Business Model The “Pharmaceutical DX business” accounts for around 90% of CareNet’s consolidated net sales and operating profit. Our profits are significantly impacted by the performance of the “Pharmaceutical DX business.”Profit structure by business segment and company-wide consolidated results for the fiscal year ended December 31, 2021 (Million yen)By business segmentConsolidatedPharmaceutical DX businessMedical platform businessConsolidated profitNet salesOperating profitOperating profit ratioFeatures of business segments and profit structure7,4253,83751.7%57811119.4%8,0042,53231.6%• Our core business and source of profits.• With increasing doctor members as the driving force, expected to grow significantly to increase company-wide earnings.• Our original business, developing abundant medical education content centered on CareNeTV.• Running CareNet.com, a doctor platform that supports the Pharmaceutical DX business.• Running career support business fordoctors• The Pharmaceutical DX business accounts for over 90% of both net sales and operating profit.• The Pharmaceutical DX business is expected to continue to serve as a revenue driver.Between the total value of each business segment and the company-wide consolidated results, there exists a segment profit adjustment of -1,417 million yen.10Our Profit Structure (2) – Major Costs1. Business Model■ The components of major costs for our business model are for “doctor members,” “platform,” “content,” and “sales and management,” which is common to each business segment. The cost for content production is included in cost of sales, and other components are included in selling, general and administrative expenses.(Million yen)FY2021ConsolidatedRatio to net salesDetailsNet sales8,004―business.• Around 90% of our consolidated net sales are generated by the Pharmaceutical DXCost of sales2,44530.6%• Most of our costs are related to content production regardless of business segment. By creating and placing content on each business segment’s platform, we can offer services such as delivering pharmaceutical information to doctor members, selling paid content, and providing career support. The major costs are personnel expenses and outsourcing costs regarding content production.Gross profit5,55869.4% • We have executed stringent cost controls (securing gross profit) based on salesforecasts and order management.Selling, general and administrative expenses3,02637.8%• Our selling, general and administrative expenses are roughly divided into twocomponents. One is related to development of platforms and their operationalmanagement, and the other is for personnel engaged in sales and management, etc.• Costs related to development, operation, and management of platforms include thoseinternal staff engaged in development/operational management, outsourcing,foracquisition of doctor members who use our platforms, activation ofthe platforms,development/operational management of databases on member doctors, medicalfacilities, etc.• Costs for personnel engaged in sales and management include those for personnel incharge of planning, sales, and project promotion in each business segment, theiractivities, development of new businesses, personnel engaged in company-wideadministrative operations, house rent, and heating and lighting.Operating profit2,53231.6%• Most of net sales in the Pharmaceutical DX business are generated from project orders. Higher sales do not necessarily lead to an increase in operating profit as we need to strengthen our sales management system in response to increases in sales (orders).112. Market Environment – Pharmaceutical DX Business2. Market Environment – Pharmaceutical DX Business[Contents]1. Business Model3. Our Competitiveness4. Growth Strategy5. Annual Plans and Progress6. Risk InformationTrends in Shares in the Japanese Ethical Drug Market2. Market Environment■ The size of the ethical drug market is expected to remain flat in the future.■ The specialty/rare disease area will continue to increase its market share while shares in the primary care area has been shrinking.9 trillion yen10 trillion yen10 trillion yen100%90%80%70%60%50%40%30%20%10%0%20102020Primary care プライマリ領域area*2*1 Specialty pharmaceuticals are developed by using advanced technologies. They are often biologics mainly used for the treatment of intractable diseases such as cancer and rare diseases.*2 Primary care drugs are low molecular weight compounds designed to be mass-produced mainly for the treatment of lifestyle-related diseases such as high blood pressure.Each specialty pharmaceutical has a smaller patient population than primary care drugs. While the number of medical facilities thatcan prescribe such pharmaceuticals is limited, a high degree of specialization to provide medical information is required. Therefore,unlike the era of primary-care drugs, a different type of promotion is needed for specialty pharmaceuticals.Generic ジェネリックmedicinesスペシャリティ領域Specialty area*12030Prepared by the Companybased on IQVIA data(on an NHI price basis)13Declining Number of MRs and Expansion of Pharmaceutical DX BusinessNumber of MRs The number of medical representatives (MRs) has been reduced in response to the patent expiration of primary-care drugs and progress in development and release of specialty pharmaceuticals.63,875 63,846 65,752 64,657 64,135 63,185 62,433 61,246 2. Market Environment59,900 57,158 53,586 20102011201220132014201520162017201820192020Sales of DX business Providing information through the Internet has been gaining momentumas the number of MRs have declined.M3Medical platform business(Million yen)CareNetPharmaceutical DX businessSource: “White Paper on MRs” released by the MR Education & Accreditation Center of JapanMedpeerDoctor platform business8,0007,0006,0005,0004,0003,0002,0001,0000(Million yen)7,0006,0005,0004,0003,0002,0001,000066,00064,00062,00060,00058,00056,00054,00052,00050,000(Million yen)90,00080,00070,00060,00050,00040,00030,00020,00010,00002018 2019 2020 20212018年2021年2019年2020年2018年2018 2019 2020 20212019年2020年2021年2018年2018 2019 2020 20212019年2020年2021年Source: Excerpt from each company’s annual securities report14Estimated Market Size of Pharmaceutical DX Business (Our Point of View)■ The structure of promotional costs in the pharmaceutical industry is expected to change from “personnel (MRs)-oriented” to being based on “integration of humans and DX” in the future.■ Currently, the use of the Internet is mainly for advertising purposes. However, as “integration of humans and DX” advances, the Internet is expected to be used more widely in various promotional activities and grow significantly as “Pharmaceutical DX”. CurrentFuture2. Market EnvironmentMR-related costsApprox. 1.3-1.5 trillion yen1)•MR personnel costs•MR activity costs(Paper materials, event-related, etc.)Utilization of externalInternet sourcesApprox. 50.0 billion yen2)•Use of doctor websites fromother companies• Cost reduction due to expiration of primary caredrug patent• Results of promoting DX, etc.• Pharmaceutical companies have an obligation toprovide, collect, and communicate information onthe quality, effectiveness, and safety of pharmaceuticals in order to promote proper use.• MRs will continue to play an essential role in thefuture, but they will primarily be stationed in acutecare hospitals where specialty pharmaceuticals* areprescribed, and there will be a shift to more efficient information activities in conjunction with the use of (*Specialty pharmaceuticals are developed by using advanced technologies. They are often biologics mainly used for the treatment of intractable diseases such as cancer and rare diseases. )DX.Pharmaceutical DX market600.0 – 700.0 billion yen3)300.0 – 400.0billion yen4)• Evolve and expand the current market for “use ofexternal Internet sources” as the “pharmaceuticalDX” market.• Integrate online/offline activities based on the Internet(hybrid type).1) The Company’s estimate is based on the “Handbook of Industrial Financial Data 2017” edited by Development Bank of Japan Inc. and the “2020 White Paper on MRs” by the MR Education & Accreditation Center of Japan.2) Calculated by totaling the Company’s estimates of sales scale for FY2021 of similar services for the Company and its competitors, based on annual securities reports.3) As medical facilities which use specialty pharmaceuticals are limited to core hospitals in each area, the Company estimated personnel and activity costs of MRs who are required to be assigned based on the number of secondary medical areas (approx. 350).4) The Company’s estimate is based on data, including estimated sales of specialty pharmaceuticals in IQVIA’s “Japan Pharmaceutical Market Statistics” and “Global Pharmaceutical Market Forecasts”, and the MHLW’s “List of New Drugs”.153. Our Competitiveness2. Market Environment – Pharmaceutical DX Business[Contents]1. Business Model3. Our Competitiveness4. Growth Strategy5. Annual Plans and Progress6. Risk InformationCompetitive Advantages3. Our Competitiveness■ Industries that operate the business of supporting pharmaceutical promotion include platformInternet service providers without doctorproviders with doctor members such as CareNet,members, contract sales organizations (CSOs), advertising agencies, and event organizers.Our competitive advantages1. Ownership of doctor platforms•CareNet’sdoctor platformOver 190,000 doctor membersforPharmaceutical companiesDoctor platform providers are characterized by theirbusiness model that they offer services to doctors byobtaining their consentinformation provision(permission to not only provide them with informationon drugs, etc. but also report their viewing activitiesto pharmaceutical companies). There are only alimited number of players in this market in Japan,including M3, Medpeer, and CareNet.CareNet has now over 200,000 doctor members (reached 200,000 on May 12, 2022), covering approximately 60% of all doctors in Japan(Number of doctors: 339,623, according to the MHLW’s “Statistics of Physicians, Dentists and Pharmacists 2020”). We have the secondlargest number of doctor members among doctor platform providers.Obtain doctor members’ consent for information provisionReport results related to viewers, etc. Pharmaceutical DX businessDoctorsMedical professionalsProvide Pharmaceutical information••2. Operation of doctor education media•Since our founding in 1996, we have created medical education video content for doctors.We have operated “CareNeTV,” one of Japan’s largest medical training media, enablingusers to stream videos from over 2,000 programs in its library at any time.• We have also written and posted over 3,000 medical articles to our core doctor platformCareNet.com every year.These activities, carried out with the cooperation of many leading medical specialists,ensure the high quality and reliability of information we provide.17Characteristics of CareNet’s Educational Media (1)3. Our Competitiveness１Collaboration with KOL physiciansCareNet has created medical education video content in collaboration with KOL doctors since its foundation in 1996. We operate “CareNeTV,” one of Japan’s largest medical education media, enabling users to stream from over 2,000 programs in its library. In order to write and post over 3,000 medical articles to our core doctor platform CareNet.com every year, we keep in constant contact with KOLs.18Characteristics of CareNet’s Educational Media (2)3. Our Competitiveness２ Collaboration with KOL surgeonsCareNet has also built relationships of trust with not only KOL physicians but also KOL surgeons. Cancer@Misewaza, planned and operated by CareNet, provides video content for young doctors in which Japan’s leading KOLs in organ-specific cancer treatment introduce their treatment strategies and techniques.194. Growth Strategy2. Market Environment – Pharmaceutical DX Business[Contents]1. Business Model3. Our Competitiveness4. Growth Strategy5. Annual Plans and Progress6. Risk InformationGrowth Strategy4. Growth Strategy1. Number of doctor members as a management indexOur doctor platform is a pillar of our business. Since the doctor platform is essential for our business growth, thenumber of registered doctors in this platform is an important “management index” for CareNet.2. Target number of doctor membersThe number of our doctor members has been steadily increasing year on year and stood at 196,441 as of March 31,2022 (and reached 200,000 in May 2022). We aim to increase the number to 250,000 by the end of 2025 by providinguseful content created according to each doctor’s specialization.3. Growth modelWe have developed two business segments utilizingour doctor platform. Each segment has key servicesand has realized a profit. Our growth model is to notonly expand businesses in existing segments byincreasing doctor members, but also to develop newbusiness segments or new services in eachsegment.* We are developing a health data science business for our medium-to long-term growth.iExpand busnesses and servcesiPharmaceutical DXMedical PlatformHealth data science** New businessesExpand membership of doctorsMR PlusOnline seminarsCareNeTVCareer servicesNew servicesNew servicesNew servicesNew servicesGrow21Number of doctor members as management index－Relation between Expansion of Membership and Business Performance4. Growth Strategy■ We have expanded the Pharmaceutical DX business to develop it into a core business whileincreasing the number of doctor members.We will continue to develop new businesses in response to the increase in doctor members,with the aim of realizing continuous growth.FY2021FY2020(Million yen)9,0008,0007,0006,000Saesl5,0004,0003,0002,0001,0000120,000FY2019FY2017 FY2018FY2016130,000140,000150,000160,000170,000180,000190,000200,000Number of doctor members22Doctors who are Members4. Growth Strategy■ The number of doctors who are CareNet members has been steadily increasing year on year, reaching 200,000 as of May 2022.Number of doctor members250,000 260,000240,000220,000200,000180,000160,000120,000100,000200,000 193,946 181,352 153,705 144,457 138,895 140,000132,730 2016 2017 2018 2019 2020 2021 May 2022 20252016年2020年2021年 2022年5月2019年2017年2018年～～2025年(計画)(Plan) 23Attributes of Doctor Members4. Growth Strategy■ Over 70% of medical specialists in various clinical departments are CareNet doctor members. Major clinical departmentsRate of doctor members in their primary clinical department at the time of their CareNet registration, assuming the number of primary departments reported to the MHLW as 100%.(as of March 31, 2022) 0% 20% 40% 60% 80% 100%Number of our member doctorsTotal number of doctors 日本の総医師数in Japan60.7%Internal medicine内科58.2%Cardiovascular 循環器内科medicineRespiratory medicine呼吸器内科Diabetes, metabolism 糖尿病・代謝・内分泌内科and endocrinology79.6%75.9%71.9%血液内科Hematology80.9%神経内科Neurology57.2%Rheumatology and 膠原病・リウマチ科connective tissuesPsychosomatic 心療内科medicine74.2%68.8%Ratio of 開業・勤務比率GPs/Hospital doctorsGeneral practitioners25.1%Hospital doctors74.9%Of 196,441 registered doctor members, general practitioners (GPs) and hospital doctors are 49,370 and 147,071, respectively. (as of March 31, 2022)196,44135,81910,3665,1074,0472,2983,2921,358609Source: MHLW’s “Survey of Physicians, Dentists and Pharmacists 2020”24Key Measures to Expand Membership of Doctors4. Growth Strategy1. Quality and quantity of content･We provide useful information for doctors and medical professionals in routine clinical practice,in accordance with our business philosophy.･We will aim to attract the attention and support of as many doctors as possible by enhancing new contentfor high-profile disease areas in terms of both quality and quantity.2. Strengthening ties with universities･Through our initiatives such as providing CareNeTV free of charge to medical students and youngdoctors under clinical training, we will strive to gain recognition of our services among them from anearly stage in order to lead them to become our members.3. Campaigns and collaboration with other websites･We are running campaigns to encourage our doctor members to recommend our services to theirfriends who are also doctors.･We have also promoted partnerships for interoperable services with other websites such as “isho.jp”.25Mid-term Vision: Growth Through New Business DevelopmentIn order to achieve net sales of 30.0 billion yen, operating profit of 10.0 billion yen, and 250,000 doctor members by 2025, we will aim to not only drive the continuous expansion of company-wide sales with strong growth contribution from the Pharmaceutical DX business, which currently generates about 90% of our sales, but also expand the medical platform business and the Health data science business as new growth businesses expected to grow in the medium to long term. 250,000 doctor members4. Growth StrategyHow to achieve management targetsSalesExisting business segmentsPharmaceutical DXMedical platformPharmaceutical DXMedical platformHealth data science190,000 doctor members5.3 billion yen8.0 billion yen20202021Existing businessMR PlusOnline seminarsCareNeTVCareer servicesGrowth through new business models・M&A promotion ・Business alliance promotion・Development investment promotion ・ESG/health management promotion(New)Medical platform/Health data science(New)Pharmaceutical DXbusinessNew businessExisting Number of doctor members30.0 billion yenFY2025 (targets)Existing businesses of Pharmaceutical DX and Medical platformOrganic growthThe details of sales targets for FY2025, including growth of new businesses, will be announced in the “mid-term management plan” around August 2022. New growth businessMarketDevelopmentPharmaceutical DX has potential to grow into a 3-400.0 billion yen market long-term1)Promote DX in pharmaceutical sales by pharmaceutical companies by utilizing remote DTL, AI, etc.1) See page 15 of this documentTarget approx. 10,000 of the approx. 100,000 medical institutions nationwide2)Support medical treatment and management for doctor members (attracting patients, improving efficiency, etc.)Support employee health promotion and corporate health management through health management in work settings for companiesAim for a 1.8 trillion yen market in workplace health management 3)2) Source: MHLW’s “Dynamic Survey of Medical Hospital Report”3) See page 31 of this document26Issues facing Mid-term Vision Achievement: Building a new Pharmaceutical DX Business Model4. Growth StrategyTo achieve the Mid-term Vision, it is necessary to put the Company’s core business of Pharmaceutical DX as the center of its growth strategy.To expand the growth of Pharmaceutical DX, relying solely on the existing “ePromotion” model is insufficient.Current Business Model (ePromotion Model)CommunicationContent•Possible to provide uniform and detailed information with video, etc.• Due to unidirectional provision, issues with fixed messages, interactivity (discussions)Provide informationePromotion ServiceMR PlusCommunication RateOnline seminars• Simultaneous broadcast to the entire country and immediately gain viewership Limits to viewership•CareNet.comDoctor membersConsignment to provide informationPharmaceutical companiesPharmaceuticals Applicable to BusinessPrimary care pharmaceuticalsMarket TrendePromotion IssuesResolution DirectionWith the reduction of MRs, expand utilization of ePromotion as alternative means• Realize a communication rate expected as a • Competitive advantage against ePromotion successor to MRcompetitorsIncrease number of members•• Establish a hybrid communication process using people alongside electronic methodsSpecialty pharmaceuticalsShortage of marketing and sales personnel who can handle the approval rush of highly specialized specialty drugs The key to specialty is to build a research network of regional medical specialists using KOLs at the core, but contribution will be difficult with the current unidirectional eModel• Platform to attain engagement with •KOLsImprove productivity by coordinating with MR activityDevelopment of a new “Pharmaceutical DX business model” is necessary to resolve the issues above. We aim to accelerate development by building systems and creating business alliances along with raising sufficient financing that will be necessary.27Outline of the Pharmaceutical DX Business Model Development Plan Starting from FY2022Business ModelConsignment to provide information with a hybrid modelTreatment education and taking charge of outreach with KOLs at the corePharmaceutical DX Business ModelGoals （To Be Achieved by 2025）Delivery to 100,000 hospitals nationwide(both primary and specialty care areas)Delivery to 1,000 key hospitals nationwide (targeting mainly specialty areas)SolutionsReliable reaching of targets through a hybrid of real world and online channelsSharing case experience of KOLs, spreading new treatments to key hospitals and medical specialists in each regionDevelopment Goals（2022-2023）Platform expansionPlatform coordinating the real world and eDTLAI implementationDelivery message optimizationInteractive engagement with KOLsOptimize targeting medical specialists (doctors, patients) using AIResource expansionDMR* implementationIncrease doctor membersMedical treatment data analysisSecure KOLsDevelopment approach (including alliances, M&A)DMR company employment and trainingCollaborating with CSOsLinking the Company’s medical platform business ・Training (video and publications)・Expanding content for career services, etc.Alliances with AI corporationsEmployment and training of medical coordinatorsLinking the Company’s Health data science business developmentLinking the Company’s medical platform business (training)Allocating funds raised in FY2021 to development of each model, joining company development, alliances, M&A, etc., to begin development in earnest. *) DMR: Abbreviation of Digital Medical Representative. Dispatched to the pharmaceutical industry, a MR armed with digital skills (having received digital training, and able to link platforms and activities).28Medium to long term developmentAim of Medium to Long Term Development in New Business Field4. Growth Strategy■ In line with the further growth of our core Pharmaceutical DX business, we will also work on the “Medical platform business” to support clinics and the “Health data science business” to support health care and health management through work settings as new growth businesses, centered around our doctor platform.Work settingsClinical settingsMedical costsHealth insuranceCompanyHealth screeningsMedical treatmentEmployees/patientsDoctorsPharmaceuticalsNew medicineHealth support service through work settingsSmart clinic support service• Support employee health promotion and corporate health management through health management in work settings for companies✔ Prescriptions / health screening data✔ Attendance data / Mental health checkups✔ Biometric data / life logs✔ Medical examination history / service history⇒Development of data-based health management platform for companies and individuals• Support medical treatment and management for doctor members (attracting patients, improving efficiency, etc.)メディカルプラットフォーム事業✔ Advisory contracts with companies✔ Remote reservations✔ Hybrid medical interviews (In-person, remote)✔ Specialist counseling, Non-covered treatment support✔ Patient monitoring✔ Recruiting, Clinic efficiency support⇒Development of smart clinic servicesNew Pharmaceutical DX business modelHealth data science businessMedical platform businessPharmaceutical DX BusinessCareNeTV / Career servicesMR Plus/Online seminars29New businessExisting businessMedium to long term developmentMedical Platform Business – Direction of Future Development (for clinics)■ Toward our philosophy of “creating a sustainable healthy society in the digital age,” CareNet is working to encourage smarter clinics where there is room for improving the efficiency of medical treatment and business operations through digitalization.4. Growth StrategyNew development of the “smart clinic” (SC) service line-upAttracting patientsDiagnostics(medical interview)Remote reservations• Online reservations for medical treatmentHybrid medical interviews• In-person, remote, AI medical interviews• Diagnostic supportAdvisory contracts with companies• Proposing corporate support to solve employee health management issuesTreatmentContinuationManagementPatient monitoring• Biometric data• Life logsetc.Specialist counselingOnline specialist consultationNon-covered treatment support• Anti-aging• Cosmetic treatment• Nutritional consultations etc.Recruiting• Staff dispatch / introduction • Staff educationClinic efficiency support• Administration• Electronic records, prescriptionsetc.Educational clinical medicine channel that provides fun learning from top-level senior medical professionalsExpanding doctor platform with over 200,000 registered doctor membersWebsite providing daily information on medical care with over 3,000 articles and news items posted every yearSearch papers on PubMedin JapaneseMedical news selected by specialists（CareNet.com）30Medium to long term developmentHealth Data Science Business (Under Development) – Business Opportunities4. Growth Strategy Corporate investment in health is increasing year to year (compulsory expenses in regular health screenings, stress checks, industrial physician costs, etc. in addition to services in collaboration with health insurance associations and other health promotion services provided as benefits that aren’t required by law). The number of companies recognized as “Certified Health & Productivity Management Outstanding Organizations” has continued to increase with the promotion of work-style reforms. Health & ProductivityManagement Market Scale*(Orgs.)2000Large Enterprise Category**(Orgs.)SME Category**7,9351,79880001,4731.5820162016年20252025年1500100050001.88(Trillion yen)9581353960004000200007752234,8132,5011.41.51.61.71.81.92*) Total values of markets for services supporting health & productivity management and health status measurement from the Ministry of Economy, Trade and Industry “Promoting Health and Productivity Management” (2018)2017 2018 2019 2020 20212017年 2018年 2019年 2020年 2021年2017年 2018年 2019年 2020年 2021年2017 2018 2019 2020 2021**) Annual total of Ministry of Economy, Trade and Industry’s “Certified Health & Productivity Management Outstanding Organizations” in (large enterprise category) and (SME category)Health insurance associationData health planCompanyCollabo-healthHealth managementEmployeesInsufficient coordinationMedical institutionProvision of intervention servicesWith increasing corporate investment in health, companies and health insurance associations are promoting further collaboration in data and services. However, there is still a lack of coordination with external intervention services to provide health guidance to pre-disease groups or to prevent aggravating the conditions of employees facing health issues, and this has not led to measurement of the effectiveness of health investments or subsequent improvements.31Medium to long term developmentHealth Data Science Business (Under Development) – Direction of Business Development4. Growth StrategyService for supporting the promotion of corporate health management through individual health management centered on work settingsDevelopment of a health platform that provides a one-stop access point for a variety of functions ranging from data analysis to necessary medical and health care services and verifications of effectivenessInsurance providersWorkplacesMedical care / health careHealth insurance associationsApprox. 1,400Collabo-healthLarge enterprisesApprox. 10,000SME enterprisesApprox. 3.80 millionIndividuals(insured)Approx. 16.00 millionMedical institutionsHealth care services(Nutritional guidance, mental care, fitness, etc.)Advisory contractsPrescriptions / health screening dataAttendance dataMental health checkupsBiometric data / life logsMedical examination history / service historyHealth management platform provided for companies and individualsData analysisAlgorithmsAdviceIntervention servicesEffectiveness measurementOptimization of health insurance financesIncreased productivityEnhanced healthROIWe will promote data analysis and algorithm development through our alliance with the Health Management System of the University of Occupational and Environmental Health and the Tokio Marine Group concluded in FY2020. By linking the medical platform developed by CareNet with the services and programs of each partner, we will develop and provide a platform for supporting both corporate and individual health.325. Annual Plans and Progress2. Market Environment – Pharmaceutical DX Business[Contents]1. Business Model3. Our Competitiveness4. Growth Strategy5. Annual Plans and Progress6. Risk InformationFinancial Year 2022 Plans5. Annual Plans and Progress■ With the end of COVID-19 out of sight, forecasting results is difficult. The forecasts disclosed are only figures that can be determined with a high degree of accuracy as of the end of FY2021. Forecast figures do not factor in expected increases in sales, etc., of new business development that have already begun.■ In addition, regarding the aforementioned forecast, in addition to the reasons above, there is the potential for delays in recording projected sales due to applying new revenue recognition standards, and we are postponing disclosure regarding FY2022.Fiscal year ended December 31, 2021 ResultsFiscal year ending December 31, 2022 Forecast(Million yen)Growth rateNet salesOperating profitOrdinary profitProfit attributable to owners of parent8,0042,5322,5561,6099,0002,5892,6141,81812.4%2.2%2.2%13.0%34The Three Months Ended March 31, 2022 – Financial Results Summary5. Annual Plans and Progress■ The Pharmaceutical DX business, which accounts for nearly 90% of our net sales, continued to achieve growth in sales for the three months ended March 31, 2022, supported by continued orders from pharmaceutical companies.■ The Medical platform business achieved significant growth in both sales and profits, supported by growth of the career business, which has been incorporated from the Consolidated growth business.The three months ended March 31, 2022By segmentCompany-widePharmaceutical DX businessMedical platform business(Million yen)Adjustment amountProgress rateOperating profit1,058-30732.4%Net sales2,2222,016838839558–Ordinary profitProfit attributable to owners of parent20687—–24.7%32.1%30.7%35The Three Months Ended March 31, 2022 – Plan and Progress5. Annual Plans and Progress■ As of the end of the first quarter of the fiscal year ending December 31, 2022, both net sales and operating profit are progressing well versus the full-year plan.Net salesOperating profitYear-over-year progress rateFull-year plan9,000(Million yen)Year-over-year progress rateFull-yearplan2,5893,0002,5002,0001,50050002,2229,000 1,00083824.7%2,589 32.4%2,222 2,222 2,222 2,222 838 838 838 838 計第第1Q 2Q 3Q 4Q Plan画31四四半半期期第4四半期第2四半期計第第1Q 2Q 3Q 4Q Plan画31四四半半期期第2四半期第4四半期3610,0009,0008,0007,0006,0005,0004,0003,0002,0001,0000The Three Months Ended March 31, 2022 – Year-over-year Results5. Annual Plans and Progress■ We achieved further growth in net sales as compared to the same period of the previous fiscal year, in which we posted remarkable growth.■ Operating profit slightly decreased year over year due to an increase in selling, general and administrative expenses resulting from investment in new business development and enhancement of personnel.(Million yen)Net salesOperating profit2021年12月期 2022年12月期FY2022FY20212021年12月期 2022年12月期FY2021FY20228,004 2,532 3,817 対前期YoY change+8.0%2,222 2,058 1,759 1,817 2,368 YoY change対前期-1.3%849 838 1,387 537 626 518 第1四半期 第2四半期1Q 2Q First half 3Q 4Q Full year 第3四半期 第4四半期上期通期第1四半期 第2四半期 上期 第3四半期 第4四半期 通期1Q 2Q First half 3Q 4Q Full year 3,0002,5002,0001,5001,00050009,0008,0007,0006,0005,0004,0003,0002,0001,000037Trends in Company-wide Performance (1)5. Annual Plans and ProgressNet sales(Million yen)第1四半期 第2四半期 第3四半期 第4四半期4Q 1Q 3Q 2Q 9,0008,0007,0006,0005,0004,0003,0002,0001,0000Full year8,0042,368 1,817 1,759 Full year5,3042,118 1,340 Full year2,902852 629 623 796 YoYchange-14.2%Full year3,2681,121 783 678 683 1Q cumulative2,222YoYchange+20.1%1,023 821 YoYchange+150.6%YoYchange+8.0%2,058 2,222 FY2018 FY2019 FY2020 FY2021 FY20222018年12月期 2019年12月期 2020年12月期 2021年12月期 2022年12月期Fiscal year ended December 31, 2018Fiscal year ended December 31, 2019Fiscal year ended December 31, 2020Fiscal year ended December 31, 2021Fiscal year ending December 31, 20221Q2Q3Q4QFull year7966838212,0582,2226236781,0231,759-6297831,3401,817-8521,1212,1182,368-2,9023,2685,3048,004-Net sales for the first quarter period increased by 8.0% year over year to 2,222 million yen dueto an increase in sales for both the Pharmaceutical DX business and the Medical platform business.For the past five years, except the fiscal year ended December 31, 2020, we have seen a seasonal factor in which sales growth changes during the second and fourth quarters. While repeating this seasonality, we have continued to increase full-year sales. 38Trends in Company-wide Performance (2)5. Annual Plans and ProgressOperating Profit(Million yen)4Q 1Q 第1四半期 第2四半期 第3四半期 第4四半期3Q 2Q 3,0002,5002,0001,5001,0005000通期Full year2,5322,532518 626 537 Full year通期469469153 76 64 175 YoYchange-29.0%Full year通期605605206 161 113 124 YoYchange+52.8%1Q cumulative838YoYchange+347.2%849 YoY対前期change-1.3%-1.3%838 FY2018 FY2019 FY2020 FY2021 FY20222018年12月期 2019年12月期 2020年12月期 2021年12月期 2022年12月期1Q2Q3Q4QFull yearFiscal year ended December 31, 2018Fiscal year ended December 31, 2019Fiscal year ended December 31, 2020Fiscal year ended December 31, 2021Fiscal year ending December 31, 202217512418984983876161574626-153206473518-4696051,5102,532-通期Full year1,5101,510473 574 271 189 64113271537-Operating profit for the first quarter period was 838 million yen, nearly the same level as the same period of the previous fiscal year, in which we posted significant growth in net sales. The slight year-over-year decrease in operating profit is due to an increase in selling, general and administrative expenses resulting from investment in new business development and enhancement of personnel. Operating profit growth could also change during the second and fourth quarters due to the impact of the seasonality of sales. While repeating this seasonality, we have continued to increase full-year profits.39Progress by SegmentSegment Performance – Pharmaceutical DX Business (1)5. Annual Plans and Progress売上高の推移Net sales(Million yen)第1四半期 第2四半期 第3四半期 第4四半期1Q 4Q 3Q 2Q 8,0007,0006,0005,0004,0003,0002,0001,0000Full year7,4252,222 1,671 1,600 Full year4,8161,996 1,218 Full year2,8701,011 Full year2,511754 532 528 696 677 589 591 YoYchange+22.1%YoYchange-15.0%879 722 YoYchange+167.4%YoYchange+4.3%1,932 2,016 2018年12月期 2019年12月期 2020年12月期 2021年12月期 2022年12月期FY2018 FY2019 FY2020 FY2021 FY20221Q cumulative2,016Fiscal year ended December 31, 2018Fiscal year ended December 31, 2019Fiscal year ended December 31, 2020Fiscal year ended December 31, 2021Fiscal year ending December 31, 20221Q2Q3Q4QFull year6965917221,9322,0165285898791,600-5326771,2181,671-7541,0111,9962,222-2,5112,8704,8167,425-1) Asclepia Co., Ltd., Scientific Communication Labo. inc., AD Medica Inc. and Healthcare Consulting Inc. have been incorporated into the Pharmaceutical DX business segment.We saw further sales growth in the first quarter period as compared to the same period of the previous fiscal year, which saw an increase in sales due to the COVID-19 crisis. As orders for our core services (MR Plus, online seminars, etc.) have remained strong, net sales increased by 4.3% year over year to 2,016 million yen.For the past five years, except the fiscal year ended December 31, 2020, we have seen a seasonal factor during the second and fourth quarters in which sales growth changes depending on pharmaceutical companies’ decisions to exhaust budgets. While repeating this seasonality, we have continued to increase sales. As the Consolidated growth business segment was abolished from the current fiscal year, some consolidated subsidiaries have been incorporated into the “Pharmaceutical business”1). Due to this change, actual results for the fiscal year ended December 31, 2021 and before are restated for comparison with the current fiscal year.41Segment Performance – Pharmaceutical DX Business (2)5. Annual Plans and ProgressSegment profit(Million yen)1Q 第1四半期 第2四半期 第3四半期 第4四半期4Q 3Q 2Q 4,5004,0003,5003,0002,5002,0001,5001,0005000Full year2,6691,117 Full year3,8371,121 863 789 Full year1,102367 220 209 304 YoYchange+0.5%Full year 1,500557 347 289 305 1Q cumulative1,058738 441 371 YoYchange+21.5%YoYchange+186.5%1,064 1,058 YoYchange-0.6%2018年12月期 2019年12月期 2020年12月期 2021年12月期 2022年12月期FY2018 FY2019 FY2020 FY2021 FY20221Q2Q3Q4QFull yearFiscal year ended December 31, 2018Fiscal year ended December 31, 2019Fiscal year ended December 31, 2020Fiscal year ended December 31, 2021Fiscal year ending December 31, 20223043053711,0641,058209289441789-220347738863-3675571,1171,121-1,1021,5002,6693,837-Segment profit for the first quarter period was 1,058 million yen, about the same level as the same period of the previous fiscal year. We have maintained the segment profit ratio of over 50%, which shows that the profit from this segment has contributed significantly to our profits.Segment profit growth could also change during the second and fourth quarters due to the impact from the seasonality of sales. While repeating this seasonality, we have increased profits.42Doctors who are Members5. Annual Plans and Progress Continuing from the previous fiscal year, the number of doctors who are members has been steadily increasing, reaching 200,000 as of May 2022.Number of doctor members250,000 260,000240,000220,000200,000180,000160,000120,000100,000200,000 193,946 181,352 153,705 144,457 138,895 140,000132,730 2016 2017 2018 2019 2020 2021 May 2022 20252016年2020年2021年 2022年5月2019年2017年2018年～～2025年(計画)(Plan) 43Segment Performance – Medical Platform Business (1)5. Annual Plans and ProgressNet sales(Million yen)第1四半期 第2四半期 第3四半期 第4四半期1Q 4Q 3Q 2Q 7006005004003002001000Full year390Full year39898 96 95 YoYchange-8.1%100 YoYchange+7.0%YoYchange+27.5%YoYchange+64.3%206 2018年12月期 2019年12月期 2020年12月期 2021年12月期 2022年12月期FY2018 FY2019 FY2020 FY2021 FY20221Q2Q3Q4QFull yearFull year487121 122 144 98 9589144159-Full year578146 146 159 125 96106122146-1Q cumulative20698110121146-390398487578-110 106 89 92 1009298125206Fiscal year ended December 31, 2018Fiscal year ended December 31, 2019Fiscal year ended December 31, 2020Fiscal year ended December 31, 2021Fiscal year ending December 31, 20221) CareNet Works Design, Inc. has been incorporated.Net sales in this segment for the first quarter period increased by 64.3% year over year to 206 million yen due to an increase in sales resulting from the incorporation of the doctor career business into this segment, as well as other factors.The doctor career business has been incorporated from the “Consolidated growth business” into the “Medical Platform business”1) from the current fiscal year. Due to this change, sales and profits of the doctor career business are included in actual results for the fiscal year ended December 31, 2020 and the fiscal year ended December 31, 2021.44Segment Performance – Medical Platform Business (2)5. Annual Plans and ProgressSegment performance(Million yen)1Q cumulative87Full year11116 42 26 26 YoYchange+48.7%87 YoYchange+234.4%第1四半期 第2四半期 第3四半期 第4四半期1Q 4Q 3Q 2Q Full year12220 29 31 42 Full year53YoYchange-45.6%24 12 22 -6YoYchange-23.4%Full year2938 28 17 -55140120100806040200-20-40-60-80FY2018 FY2019 FY2020 FY2021 FY20222018年12月期 2019年12月期 2020年12月期 2021年12月期 2022年12月期Fiscal year ended December 31, 2018Fiscal year ended December 31, 2019Fiscal year ended December 31, 2020Fiscal year ended December 31, 2021Fiscal year ending December 31, 20221Q2Q3Q4QFull year422217268731122826-29243842-20-6-5516-1225329111-Segment profit of the Medical platform business for the first quarter period increased by 234.5% year over year to 87 million yen due to an increase in sales resulting from the incorporation of the career business into this segment.456. Risk Information2. Market Environment – Pharmaceutical DX Business[Contents]1. Business Model3. Our Competitiveness4. Growth Strategy5. Annual Plans and Progress6. Risk InformationRecognized Risks and Countermeasures (1)6. Risk Information■ Major risks that CareNet, Inc. (the “Company”) is aware of are as follows. Unless otherwise stated, any forward-looking statements are determined by the Company based on information available as of the end of the first quarter of the fiscal year ending December 31, 2022.RisksCountermeasuresClassificationRisks related to depend-ance on the medical and pharma-ceutical industriesMost sales of the CareNet Group (the “Group”) are generated by sales frompharmaceutical companies, doctors, and medical professionals. When theGroup is unable to respond to stagnation or shrinking of the medical andhealthcare markets due to situations such as reductions in medical costs ordrug prices, generic erosion, changes in the current health care system, etc.,as well as new market trends, those events could have an impact on theGroup’s business performance, etc. In addition, the pharmaceutical industryis facing intensifying global competition among companies and acceleratingmoves towards reorganization. While competition among companies mayaccelerate the adoption of various services provided by the Company, thereis a possibility thatthe existing customers who are reorganized mayreevaluate their transactions with the Company. Such cases may affect theGroup’s business results, etc.By not only providing services that meet the needsof pharmaceutical companies, etc., but by alsodeveloping new products, the Group will establish asystem that can respond to various companiesspecificwithoutcountries, regions, and companies, with the aim ofdiversifying risk. In addition, the Company strives toreduce the riskbyappropriately implementing credit management forcustomers on a regular basis.concentratingcustomerscustomerslossofofinRisks related to entry of rivals and acquisition/retention of doctor membersThe Group requires cooperation from many doctors. Since the Groupalready has 200,000 doctor members (as of May 2022), we believe that theGroup has established strong advantages in this service. However, whilewe need the cooperation of many doctors in order to provide our services,the Company may become unable to maintain our advantages whennewcomers enter to the market or competition intensifies due to launch ofsimilar services by companies with doctor members or pharmaceuticalcompanies themselves. Such cases could affectthe Group’s businessresults.The Group has acquired members by providinghighly satisfactory medicalinformation to doctormembers through our membership-based websitesincludingfor doctors and medical professionals,CareNet.com.itsIn addition,efforts into developing more specialized websitesthrough cooperation with doctor members. With theincrease in the number of doctor members, we willstrive to secure our advantages by improving ourservices supporting pharmaceutical companies forInternet-based marketing and activities ontheirproper drug use.the Group has put47Recognized Risks and Countermeasures (2)6. Risk InformationClassificationRisks related to handling of personal informa-tionRisks related to Pharma-ceutical and Medical Device Law, etc.RisksCountermeasuresIn March 2005,The Group’s business is based on cooperation with doctors. For this reason,we hold personalinformation of many doctors for the execution of ourthe Group was granted the PrivacyMarkbusiness.certification, which meets Japan Industrial Standards (JIS Q15001:Requirements for compliance program on personal information protection).We are working to ensure the thorough management of personalinformation by taking measures such as the development ofinternalregulations regarding personalinformation protection and operationalchecks. With these measures, we believe it is extremely unlikely that theinformation of doctors, etc., will be leaked. However, if by anypersonalchance leakage of doctors’ personal information occurs, we would lose thetrust of doctors, which may result in interfering with almost all of the Group’sservices that are supported by doctor members, and subsequently affect theGroup’s business performance.The Group not only provides medical professionals with medical andpharmaceutical information through the Internet, print media, etc., but alsoconducts advertising activities for pharmaceutical companies under contract.For this reason, labeling and expressions used in such media are regulatedby the Act on Securing Quality, Efficacy and Safety of Products IncludingPharmaceuticals and Medical Devices,the JPMA Promotion Code forPrescription Drugs, the Guideline for Preparation of Product Overview forPrescription Drug, the Guidelines on advertising of prescription drugs forspecialized papers/journals, and the Standards for Fair AdvertisingPractices. These laws and regulations restrictthe use of words andexpressions posted on websites, etc., regarding medical- or pharmaceutical-related names, efficacy, efficiency, safety, and handling of other companies’products, and required descriptions. If the Group were to violate such lawsand regulations, it could affect the Group’s business results, etc.In order to manage their personal information, weare working to not only continuously conducteducational activities through training, etc., to raisethe awareness of our executives and employeesregarding personal information protection, but alsoexecute our business in accordance with personalinformation protection regulations that stipulatespecific operational procedures to protect personalinformation.In addition, we have established acooperative framework with our system departmentin orderto take further measures to preventinformation leakage, including limiting the numberof employees having security access privileges forcomputer system servers, etc.to preventIn orderrisks related to legalrestrictions, the Group is committed to ensuringcollecting information regarding enactment andrevision of relevant laws and regulations, andmonitoring them in each specialized field asproactive measures. We also strive to reducerestrictions byrisks associated with legalensuringandspecialists,employees understand relevantlaws andregulations.executives,For risks and countermeasures other than those described in this list, please refer to the “Business Risks” section in CareNet’s Annual Securities Report.48Disclosure ScheduleNext progress report* This schedule is tentative and subject to change.Fiscal year ending December 31, 20221Q2Q3Q4QJan 2022Feb 2022Mar 2022Apr 2022May 2022Jun 2022Jul 2022Aug 2022Sep 2022Oct 2022Nov 2022Dec 2022Results briefing for fiscal yearended December 31, 2021February 101Q results briefingfor fiscal year endingDecember 31, 2022May 1227th annual shareholders meetingMarch 252Q results briefingfor fiscal year endingDecember 31, 2022August 103Q results briefingfor fiscal year endingDecember 31, 2022November 11Financial statementFinancial statementFinancial statementFinancial statementBusiness plans and matters related to high growth potentialBusiness plans and matters related to high growth potentialBusiness plans and matters related to high growth potentialBusiness plans and matters related to high growth potentialQuarterly reportQuarterly reportQuarterly reportMid-term management planAnnual securities report Convocation notice of shareholders meetingStock informationThe next progress report will be presented in three months at a financial results briefing for the second quarter of the fiscal year ending December 31, 2022 (scheduled for the middle of August 2022).49announcementresults iFnancial periodQuiet documentsliDscosure This material contains projections, plans, management targets, and other forward-looking statements, etc., relating to CareNet, Inc. (the “Company”).These statements are drawn from assumptions (information and forecasts currentlyavailable to the Company), and it is possible that such assumptions are inaccurateand that actualresults produced may differfrom those mentioned in saidstatements.Furthermore, information and data other than that concerning the Company hasbeen quoted from public sources, and the Company offers no guarantee regardingthe accuracy of such information.CareNet, Inc.Inquiries regarding IR: ir@carenet.co.jp50