エラン（6099） – [Delayed]Operating Results for the First Quarter of Fiscal 2022 Ended March 31, 2022

Tokyo Stock Exchange (TSE) Prime MarketSecurities code: 6099Bringing smiles to your hospital/elderly facility stayELAN CorporationOperating Results for the First Quarter of Fiscal 2022 Ended March 31, 2022ELAN CorporationGreetingWe would like to extend our sincere sympathies to those infected withCOVID-19. At the same time, we would like express our deep appreciationfor healthcare workers and others working in frontline roles.Our company has continued to provide necessary services to accommodate intentionsand policies of medical institutions while also reminding all our employees to takemeasures for prevention of the spread and implementing off-peak commuting,teleworking, etc.We are determined to continue putting all our efforts to seek sustainabledevelopment of the company in order to solve problems medical institutions, nursinghomes, patients, users and their families face.2Table of Contents1. Operating Results for the First quarter of Fiscal 20222. Earnings forecast of Fiscal 20223. Reference Materials p.4p.19p.2431. Operating Results for the First quarter of Fiscal 2022Bringing smiles to your hospital/elderly facility stayHighlights for First quarter of Fiscal 2022 Results forFirst quarter ofFiscal 2022Revenues and profit increased due to the increase in the number of users and the non-recordingof some expenses resulting from restrain of activities mainly on sales due to the nationwidespread of COVID-19.Net sales8,792 million yen(YonY+16.9%)Ordinary profit917 million yen(YonY+24.1%)Operating profit913 million yen(YonY+24.0%)Profit attributable to owners of parent626 million yen(YonY+23.5%)Number of contracted facilitiesNumber of monthly users1,862 facilities355,372 people(New contract +65/cancellation 17)(From the previous quarter +13,962 people)5Change in Number of Contracted Facilities and Number of Users The number of contracted facilities and the number of the CS set users are increasing steadily.Number of Contracted Facilities and Cancellation RateNumber of Monthly Users1,8621,814355,372341,4101,614 1,362 1,140 992 Number offacilities764 644 3.4%3.0%2.9%2.5%2.2%2.0%2.2%1.8%68,704 53,810 516 406 Cancellationrate0.7% 0.8%283,555225,578190,683 168,410 120,026 89,825 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022*Cancellation rate for the year = Number of cancellations in current year / (Contracts at end of previous year + New contracts in current year)*The number of monthly users above indicates the number of users in the month at the end of each fiscal year.Q1Q16 With the number of contracted hospitals (with 50 or more beds) exceeding 1,100, the penetration rate has reached 16.2% and entered a With the number of contracted long-term care health facilities and integrated facilities for medical and long-term care (with 50 or moreChange in Penetration Rates of Facilitiesphase of wider public acceptance.beds) exceeding 250, the penetration rate has reached 7.3%.Penetration Rate of Hospitals(with 50 or more beds)Penetration Rate of Long-term Care Health Facilities/Integrated Facilities for Medical and Long-term Care(with 50 or more beds)Number of contractsNot contractedPenetration rateNumber of contractsNot contractedPenetration rateRoom for more penetration+Already taken by other companiesRoom for more penetration+Already taken by other companies11.4%12.8%14.4%15.9%16.2%855 959 1,070 1,177 1,198 FY 2018FY 2019FY 2020FY 2021FY 2022 Q1ELAN’s target is 7,413 facilitiesMinistry of Health, Labor and Welfare.3.7%143FY 20184.8%1906.1%2427.2%2857.3%290FY 2019FY 2020FY 2021ELAN’s target is 3,976 facilitiesFY 2022 Q1*Prepared by ELAN in reference to the survey results of Survey of Medical Facilities 2019 and Survey of Institutions and Establishments for Long-term Care 2019 by *Starting in the presentation material for the first quarter of Fiscal 2021, integrated facilities for medical and long-term care were added to long-term care health facilities when calculating the penetration rate. (Thus, the penetration rates for FY 2019 and FY 2020 differ from those presented in the past materials.)7100.00%90.00%80.00%70.00%60.00%50.00%40.00%30.00%20.00%10.00%0.00%100.00%90.00%80.00%70.00%60.00%50.00%40.00%30.00%20.00%10.00%0.00%Penetration Rate by Facility Size There is little difference in the penetration rate by number of beds in both hospitals and long-term care health facilities/integrated facilities for medical and long-term care, and contracts have been concluded evenly.Penetration Rate of Targeted Hospitals by Number of BedsPenetration Rate of Targeted Long-term Care Health Facilities/Integrated Facilities for Medical and Long-term Care by Number of BedsAll targeted 全施設facilities300床以上300 beds or more200床－299床200 – 299 beds100床－199床100 – 199 beds50床－99床50 – 99 beds20床-49床20 – 49 bedsRoom for more penetration+Already taken by other companiesRoom for more penetration+Already taken by other companies全施設All targeted facilities150床以上150 beds or more100床‐149床100 – 149 beds50床‐99床50 – 99 beds49床以下49 beds or less0%20%40%60%80%100%0%20%40%60%80%100%*The blue parts of the charts above represent the penetration rate of our service.*Prepared by ELAN in reference to the survey results of Survey of Medical Facilities 2019 and Survey of Institutions and Establishments for Long-term Care 2019 by *Starting in the presentation material for the first quarter of Fiscal 2021, integrated facilities for medical and long-term care were added to long-term care health Ministry of Health, Labor and Welfare.facilities when calculating the penetration rate.8ELAN’s Operating Bases and Number of Contracted Facilities Throughout Japan (as of March 31, 2022)The number of contracted facilities is increasing steadily throughout Japan*The figures in parentheses are the numbers increased (net) in FY 2022Chugoku/Shikoku area368 facilities (+8)Kansai/Hokuriku area336 facilities (+8)Kyushu/Okinawa area114 facilities (+6)Hokkaido area120 facilities (+3)Tohoku area235 facilities (+10)Kan-etsu area301 facilities (+8)Chubu area388 facilities (+5)9Expand Acceptance of CS Set R/LCR increased by 8 and LC increased by 5Number of Facilities Contracts for CS Set RPOINT of CS Set R101 10937FY 2018 FY 2019 FY 2020 FY 2021FY 2022 Q1Number of Facilities Contracts for CS Set LCPOINT of CS Set LC83884046188FY 2018 FY 2019 FY 2020 FY 2021FY 2022 Q1[Benefit from introduction]institutions, etc. can reduce debt-collection tasks,Medicalwhich require man-hours, as well as eliminate the risk of failingto collect.[Number of introductions]There has been an increasing trend in the number of introductions due to adding R from the initial phase of proposals.[Usage]High usage ratio of the services is realized in general.[Benefit from introduction]Damages for which medical institutions, etc. find it difficult todemand compensation from users are covered.[Actual case examples for compensation] Clogged the toilet by flushing a foreign object. Tore the nurse call cable. Broke the glass on the door by accidentally hitting it with anumbrella.10Consolidated Statement of IncomeNet sales (millions of yen)+16.9％8,792 7,523 Year on year +1,268 million yen+235 facilitiesNumber of new contract facilities for CS set・ FY 2021 Q1 : 53 → FY 2022 Q1 : 65FY 2021 Q1FY 2022 Q1Gross profit (millions of yen)3,5003,0002,5002,0001,5001,0005000+18.7％2,270 1,912 Year on year +357 million yenGross profit margin (year on year) +0.4%25.4%25.8%FY 2021 Q1FY 2022 Q10.40.350.30.250.211Consolidated Statement of Income1,200Operating profit (millions of yen)+24.0％913 1,00080060040020009008007006005004003002001000737 9.8%507 6.7%FY 2021 Q1FY 2022 Q1Profit attributable to owners of parent (millions of yen)+23.5％626 7.1%FY 2021 Q1FY 2022 Q1Year on year +176 million yenBy improving business efficiency through billing-related systemization, etc.10.4%Operating profit margin (year on year) +0.6%Year on year +119 million yen12Consolidated Balance SheetAssets (millions of yen)Curent assetsNon-current assets13,9471,817-4.5%+1.4%-5.4%13,3161,84212,12911,473FY 2021FY 2022 Q1Liabilities/Net Assets (millions of yen)Current liabilitiesNon-current liabilitiesNet assetsTotal assetsComparison with the end of the previous fiscal year-631 million yenCash and deposits due to dividend and corporate tax payment, etc. -968 million yen13,947 -4.5%13,316 Total liabilitiesComparison with the end of the previous fiscal year +1.1%+19.0%+11.3%7,483 47 6,417 7,566 55 5,694 FY 2021FY 2022 Q1Loans None-713 million yen13Consolidated Balance SheetNet Assets (millions of yen)Net assets per share (yen)7,483 7,566 Net assetsComparison with the previous fiscal year +82 million yen123.78 125.14 BPS FY 2021 : 123.78 yen→ FY 2022 Q1 : 125.14 yen (+1.1%)FY 2021FY 2022 Q1ROA/ROEＲＯＡＲＯＥROAComparison with the previous fiscal year 27.9%22.0%FY 202124.4%20.0%FY 2022(Forecast)* Liquidation ratio 201.5% (189.0% in the previous fiscal year)ROEComparison with the end of the previous fiscal year -2.0%-3.5%14Expansion of In-House Logistics Delivery was made to 79 facilities using in-house logistics in March 2022 Aim to expand the delivery area and bases and create a system enabling delivery to 250 facilities during 2023Change in Number of Facilities to Which In-House Delivery Is MadeIncrease in number of items shipped using in-house logistics and merchandise stockpile volume7973422022Delivery during disastersRisk diversification in case of emergencies and being out of stockEnd ofMar. 2021End ofJun. 2021End ofSep. 2021End ofDec. 2021End ofMar. 2022* The number of facilities to which in-house delivery was made as of the end of each month. 15Expansion of “Kikumimi” Services Expanding the field of services in accordance with the needs for consultation Website renewal, display consultation cases at the topHousingMedical care(Hospital visits / hospitalization)Provision of care(Making regular visits to/entering facilities)In-home assistancePreventing diseases and addressing pre-symptomatic statesEnd-of-life planning Free appraisal of real estateLeaseback•• Free tentative land survey Management of houses where the family is out Disposal• Swedish death cleaning• Disposal of household articles Change of a place of living• Relocation• Selecting a nursing home CS Set Fidelity guarantee Consultation with pharmacists Second opinion Online visit Accompanying those receiving consultation Escort upon hospital visits• Nurse-cum-housekeeper Proposals for facilities• Rehabilitation• Recreation Nurse-cum-housekeeper• Safety confirmation Healthcare Rehabilitation Hobbies• Travel• Job assistanceLearning Inheritance-related• Family trusts•Life insurance trusts• Testamentary substitute trusts • Donation by will (small-amount donation) Property management Funeral • Dismantling of a family grave, etc. Cleaning of belongings of the departed*(As of March 2022) Services in black: services already implemented / Services in blue: services to be implemented16Development of Original Patient WearDevelopment of original patient wearName:Meaning:Cloth:Progress:lifteLift the quality and feeling of life at hospitals and facilitiesTexture and design that make users feel comfortable when wearing it Realized both soft wear comfort and industrial launderabilityIntroduced at one facility in 2021Scheduled to be introduced at more than 10 facilities in 202217Release of “Ganju Pass“ appli Subsidiary Ryukyu Elan releases WEB application “Ganju Pass” on April 18 “Ganju” is an Okinawan dialect that means health and sturdiness Start the promotion for the use of CS set users in Okinawa Prefecture【Ganju Pass】【 Infection control measures certified store search 】【Ganju Pass privilege store】【 Congestion status Map 】【Map of PCR inspection sites 】Function introductionCertificate of vaccination record or PCR negativeRestaurants list of cleared the infection control standards of Okinawa PrefectureMap of stores that give benefits by presenting Ganju PassA map that delivers LIVE distribution of the congestion status of system installation locations in Okinawa Prefecture in 6 stagesMap of PCR inspection sites in Okinawa Prefecture182. Earnings forecast of Fiscal 2022Bringing smiles to your hospital/elderly facility stayForecast of Operating Results for Fiscal 2022There are no change form current forecast for fiscal 2022.Increase of Revenues due to the continued high utilization rates at existing facilities and acceleration of the acquisition of new facilities absorb the increase of the expense of activities of sales and investment in new businesses.Fiscal 2021 First Half ResultsFiscal 2022 First Half ForecastYoY changeFiscal 2021 ResultsFiscal 2022 ForecastYoY change(millions of yen)Net sales15,21817,30013.7%31,63537,00017.0%1,4301.9%3,0007.2%Operating profitOperating profit to net salesOrdinary profitOrdinary profit to net salesProfitEPSProfit to net sales1,4039.2%1,4149.3%9566.3%8.3%8.3%5.7%1,4401.8%3,0207.1%9802.5%2,0004.9%2,7988.8%2,8188.9%1,9056.0%8.1%8.2%5.4%15.78 yen16.21 yen31.49 yen33.08 yen(Note) Net assets per share (BPS) has been retroactively revised to take into account the impact of the 2-for-1 stock split implemented on January 1, 2021.20Return to Shareholders■Payment of year-end dividend for fiscal 2022 will be 10.0 yen per share■Consolidated dividend payout ratio for fiscal 2022 will be 30.3%, up 1.7 percentage points year on yearChange in Dividend per Share and Dividend Payout RatioChanges in Financial IndicatorsCommemorative dividendDividend per shareDividend payout ratioDividend payout ratioＤＯＥＲＯＥＲＯＡ10.00 009.000 08.000 07.000 06.000 05.000 04.000 03.000 02.000 01.000 00.000 029.3% 28.6%30.3%27.6%24.3%17.6%18.1%10.0円20%9.0 yen7.0 yen12.1%6.0%0.375 yen0.3125 yen 0.375 yenFY 2015FY 20144.5 yen3.5 yen1.5 yen2.0 yen40%30%10%0%27.6%29.3%28.6%27.9%25.8%24.3%18.6%20.5%22.4%21.4%22.0%20.5%17.6%18.1%17.9%17.6%15.7%15.7%30.30%24.40%20.00%5.5%5.9%7.40%7.6%8.0%3.3%3.7%FY 2016FY 2017FY 2018FY 2019FY 2020FY 2021FY 2022(Forecast)FY 2016Y 2017FY 2018FY 2019FY 2020FY 2021FY 2022(Forecast)(Note 1) Dividend per share in the above graph has been retroactively adjusted to reflect the 2-for-1 stock split on July 1, 2015, the 2-for-1 stock split on October 1, 2017, the 2-for-1 stock split on January 1, 2019, and the 2-for-1 stock split on January 1, 2021. (Note 2) Dividend payout ratio is on a non-consolidated basis through fiscal 2016 and on a consolidated basis for fiscal 2017 and thereafter.21Vision in Numbers Aim for consolidated net sales of 37.0 billion yen in fiscal 2022.Net salesOperating profitOperating profit marginPenetration rate of the target marketDomestic base2019(Results)21.5 billion yen2020(Results)26.0 billion yen2021(Results)31.6 billion yen2022(Forecast)37.0 billion yen1.49 billion yen2.06 billion yen2.7 billion yen3.0 billion yen6.9%10％7.9%11.7％8.8%12.8％8.1%20％20 bases21 bases22 bases23 basesOpened Shizuoka BranchOpened Hakodate Sales OfficeStarted overseas researchOpened Okinawa BranchPostponed overseas researchOpened Chiba BranchOpened Osaka Branch No. 2Postponed overseasresearchOpen Kanazawa Branch No.2Open Kushiro Branch orMatsuyama Branch Resumed overseas researchMedium-Term Management Vision for 2020 to 202222Illustrative Description of Growth Through Further ExpansionInitiatives for GrowthFormulation of New Medium-Term Management VisionELAN Group’s Development OverseasIncrease the penetration rate of the target market to 20% or higher as a groupLaunch new businessesCreate a platform for patients and their familiesEnhance added value to differentiate ELAN from other companiesImprove operating profit margin by reinforcing operating systemsNext StageNew businessContract services businessCS Set37,00031,63526,056 Net Sales (millions of yen)4,601 6,025 7,463 9,011 11,408 15,467 18,585 21,518 2020-2022Medium-Term Management VisionNew 2023 to 2025 Medium-Term Management VisionFY 2012FY 2013FY 2014FY 2015FY 2016Fy 2017FY 2018FY 2019FY 2020FY 2021FutureFY 2022Planned(Note) The figures are on a non-consolidated basis through fiscal 2016 and on a consolidated basis for fiscal 2017 and thereafter.233. Reference MaterialsBringing smiles to your hospital/elderly facility stayCompany Overview長野県松本本社Matsumoto Head Office in Nagano PrefectureWe seek to provide the best products and services that satisfy our customers, and we focus 「心豊かな生活環境の実現」をテーマにour passion on contributing to the realization of a 新しいビジネスを創造・挑戦し続けます。society in which people live fulfilling lives代表取締役Representative Director & President櫻井 英治Minezaki Tomohiro社Company name名 株式会社エランELAN Corporation事Business description業 医療介護関連事業（CSセット）Medical and nursing care-related business (CS Set)設Established立 1995年2月6日February 6, 1995資 本 金 005億73百万円573 million yenCapital売 上 高 316億35百万円（2021年12月期）31,635 million yen (fiscal 2021)Net sales経 常 利 益 028億18百万円（2021年12月期）Ordinary profit2,818 million yen (fiscal 2021)本 社 所 在 地 長野県松本市Matsumoto City, Nagano PrefectureLocation of headquarters代 表 者 代表取締役 櫻井英治RepresentativeRepresentative Director: Hideharu Sakurai従 業 員 数 508名（2022年1月1日現在）502 (as of January 1, 2022)Number of employees事 業 所Business establishment[Headquarters] Matsumoto [Office] Tokyo (business strategy and marketing)【本社】松本【オフィス】東京（事業戦略・マーケティング）[Business establishment] Matsumoto Murai (response to customers)【事業所】 松本村井（お客様対応業務）Hokkaido area Sapporo/Hakodate [Sales base] 【営業拠点】北海道エリア札幌/函館Tohoku area Aomori/Morioka/Akita/Sendai青森/盛岡/秋田/仙台東北エリアKan-etsu area 東京/千葉/さいたま/相模原/新潟関越エリアTokyo/Chiba/Saitama/Sagamihara/Niigata松本/名古屋/静岡中部エリアChubu area Matsumoto/Nagoya/Shizuoka金沢/大阪関西北陸エリアKansai/Hokuriku area Kanazawa/Osaka広島/岡山/四国中四国エリアChugoku/Shikoku area 九州・沖縄エリア 福岡/南九州/沖縄Hiroshima/Okayama/ShikokuKyushu/Okinawa area Fukuoka/Minami-Kyushu/Okinawa子 会 社 株式会社エランサービス（請求業務）、株式会社琉球エラン上 場 市 場 東京証券取引所 市場第一部（証券コード：6099）ELAN Service Corporation (Invoicing operation), Ryukyu ELAN CorporationSubsidiariesListed marketTokyo Stock Exchange (TSE) Prime Market (Securities code: 6099)各種認定状況 プライバシーマーク制度、えるぼし認定、くるみん認定Status of various certificationsPrivacy mark system, Eruboshi certification, Kurumin certification Introduction of Our Product: What Is the CS Set?The CS Set allows people to start hospitalization and end a hospital stay as well as hospitalvisitations without the need to bring anything. There is no need for patients to assemblehospitalization supplies on their own.CS Set users can rent clothing and towels, and receive disposable diaper pads, personal careitems and other supplies needed during a hospital stay. Required items are available at the timethey are needed on a daily basis at a fixed rate.Example of the CS Set Standard Plan Note: The daily fees shown below are for reference.Plan ADaily fee: 700 yenPlan BDaily fee: 500 yenPlan CDaily fee: 300 yen(Example) Seven-day hospital stay under Plan B500 yen × 7 days ＝ 3,500 yenTowelsBath towel, face towel, hand towelPersonal care itemsTowelsPersonal care itemsClothingDrinking cups, tissues, shampoo, slippers, etc.Oral care product setHospital gown or training wear (top and bottom)Underwear and socksNursing care pajamas, mealtime apronClothing26Business ModelFor (1) services provided directly by external suppliers and (2) services provided by ELAN, the roles of all parties involved are the same; only the contract format is different.Delivery of laundered pajamas, etc.Collection of pajamas, etc. for launderingDelivery of personal care and other items dna slatipsoh tagniyats slaudividni( sremotsuC)seilimaf rieht dna ,seitilicaf eracExplanations on the CS SetApplication for the CS SetSupply/collection of pajamas, etc.Distribution of personal care and other items seitilicaf erac gnisrun ,slatipsoHseitilicaf rehtodna (1) Services provided directly by external suppliersOutsourcing fees(2) Services provided by ELANOutsourcing feesSending invoices and responding to inquiriesService feesServicesPaymentsPayment for laundry and other servicesPayment for laundry and other services sredivorpecivres rehtodna sre ilppus neniL27The CS Set Eliminates the Worries of Patients and Family MembersThe CS Set provides patients and their family members with ease and comfortStart and end a hospital stay without bringing anythingFamily members can focus on caring for the patientsAgingCS SetClothingTowelsPersonal care itemsFamily members can visit patients casually and at ease with ELAN’s servicesShifting to nuclear family householdsSingle-person households are increasingPeople living alone can start a hospital stay without worry28Resolving Problems for Hospitals and Nursing Care Facilities as WellMany advantages for the nursing and care frontlinesSolves problems for hospitals and nursing care facilitiesThe staff can now focus on theirnursing and care duties!Chronic labor shortageHygiene problemsRestricted visitation due to COVID-19Goods were moved by staffExample) Moving dirty things from the hospital wards to the reception on the 1F, giving them to the family, and bringing new clothes and towels to the hospital wards29Illustrative Description of Operational Improvements at HospitalsSignificant saving of time and labor The staff can focus on their nursing and care dutiesEffects of Introducing the CS Set: A Case ExampleFor using towels and mealtime aprons at a hospital with 250 bedsTime (minutes) Per Day Spent for LaunderingNumber of Laundering (times) Per DayWorking Time (minutes) Per Day (folding and setting, etc.)Volume of Sterilization Solution (ml) Per Month1,4701,470分minutes33 times255 minutes11,250mlReducedby57.4%625625分minutesReducedby60.6%13 timesReducedby72.5%70 minutesReducedby71.1%3,250mlBeforeintroductionAfterintroductionBeforeintroductionAfterintroductionBeforeintroductionAfterintroductionBeforeintroductionAfterintroduction*Figures represent accumulated total values for 6 hospital wards.30CS Set R: Hospitalization Set with a Service to Guarantee Hospitalization ExpensesPatientsIssuesShift to nuclear family households and increase in households of singlesAdvantagesNo need of any co-guarantorELAN CorporationIssuesIntensifying competition over hospitalization setsAdvantagesCultivating new customers and expanding market share through differentiationA new service to realize a win-win relationshipCS Set R: the CS Set equipped with a guarantee for medical expensesCS Set R users can receive a service that guarantees medical expenses(Note) Certain requirements must be satisfiedHospitalsIssuesNo confirmation can be obtained from co-guarantorsAdvantagesReduces the risk of unpaid expensesIssuesAdvantagesGuarantee companyExpanding its medical expenses guarantee serviceBetter recognized with a larger number of users31Developed the “CS Set LC (Loss Control) Hospitalization Guarantee”CS Set automatically equipped with a service to compensate damage accidents caused by patients using the CS SetOngoing serviceCS SetNew serviceCS Set LCAdvantages provided by the new serviceTowelsClothingPersonal care suppliesCompensation■ Damage to equipment caused by CS Set users■ Compensation for injury to staff and hospitalized patientsProvides new added value to customersFamily members of CS Set usersReduces the risk of damage liabilitiesHospitals and nursing care facilitiesReduces clerical and labor costs Avoids unexpected losses32Characteristics and Strengths of ELAN1. The CS Set has a solid history in the hospitalization support set business2. Growth potential and earnings-generating capabilities of the subscription-based business model3. Barriers to new entrants are growing33Characteristics and Strengths of ELAN The CS Set Has a Solid History in the Hospitalization Support Set BusinessELAN has pioneered the hospitalization support set business in an organized fashionThree factors that have enabled ELAN, the pioneer, to predominantly lead the late starters1Know-how Ability to determine where the profitability threshold stands Explanations to nursing and care staff and operational skills Provision of services in a manner consistent with government guidance Efficient invoicing and payment receipt operations A business model built on ongoing business relationships with partners 23Business Modelto achieve mutual successPositioningcorporate group ELAN stands independent and open without being affiliated by any 34Characteristics and Strengths of ELAN Barriers to New Entrants Are GrowingBarriers to entry appear to be low but are actually highThree barriers against potential new entrants1Know-how2Business Model3PositioningBuild even higher barriers against potential new entrants by accumulating know-how and firmly establishing our position in the industry35Financial Highlights (1)Change in Net Sales (millions of yen)Change in Profits (millions of yen)21,518 18,585 15,467 31,63526,056 Operating profitOrdinary profitProfit2,8182,7982,148 2,068 1,9051,446 1,282 1,492 1,501 1,278 865 989 913 924 658 FY 2017FY 2018FY 2019FY 2020FY 2021FY 2017FY 2018FY 2019FY 2020FY 2021Change in Number of Contracted FacilitiesChange in Number of Monthly Users (people)HospitalsNursing care facilitiesOther992 57130805 1,14071156913 1,362952111,056 1,8141693321,6141432811,190 1,313 341,410 283,555 168,410 190,683 225,578 FY 2017FY 2018FY 2019FY 2020FY 2021FY 2017FY 2018FY 2019FY 2020FY 202136Financial Highlights (2)Change in Profit MarginsChange in ROE and ROAOperating profit marginOrdinary profit marginProfit margin6.9%6.9%7.0%6.9%4.7%4.6%6.0%5.9%4.3%8.2%7.9%5.6%8.9%8.8%6.0%ROEROA27.9%25.8%20.5%15.7%22.4%21.4%17.9%17.6%20.5%22.0%FY 2017FY 2018FY 2019FY 2020FY 2021FY 2017FY 2018FY 2019FY 2020FY 2021Change in Total Assets, Equity Capital and Equity Ratio (millions of yen)Change in Dividend per Share and Dividend Payout RatioEquity capitalTotal assetsEquity ratio53.6%54.2%54.4%52.9%53.7%Dividend per shareDividend payout ratio28.6%11,689 13,94727.6%29.3%24.3%6,526 7,824 6,184 7,4839,236 3,497 4,262 5,021 9.0 yen7.0 yen3.5 yen4.5 yen987654321018.1%2.0 yenFY 2017FY 2018FY 2019FY 2020FY 2021FY 2017FY 2018FY 2019FY 2020FY 202135.0%30.0%25.0%20.0%15.0%10.0%5.0%0.0%(Note) Dividend per share has been retroactively adjusted to reflect the 2-for-1 stock split on October 1, 2017, the 2-for-1 stock split on January 1, 2019, and the 2-for-1 stock split on January 1, 2021.37[Disclaimer]This material has been prepared by ELAN Corporation.This material includes forward-looking statements such as strategies and outlooks.These statements are based on the judgments of ELAN at the time this material was prepared(May 12, 2022) and include risk factors and uncertainties.Such statements may be changed due to a variety of reasons including changes in the businessenvironment.[Contact]IR Office ELAN CorporationTEL: 0263-41-0760E-mail: ir-info@kkelan.com38