Overview of Financial Resultsfor FY2024 1st Quarter

CMIC HOLDINGS Co., Ltd.
January 31, 2024
Copyright ©2020 CMIC Group – All Rights Reserved

CMIC Group Business2

CMIC Group Network
28 group companies, 61sites (47 offices, 6 factories, 7 laboratories)
Japan: 15 companies
Overseas: 13 companies
China
Hong Kong
VietnamThailand
Malaysia
Singapore

Asia-Pacific : 13
USA:2

Korea

USA

TaiwanPhilippines
Japan : 46

（Plants : 4, Labs : 7）

Australia

Offices
PlantsLabs（Plants : 2, Lab : 1）

OfficesPlants
Lab3

Focus Activities of Mid-term Management Plan (FY2022-25)
Evolution of healthcare businessComprehensive support for disease
prevention, treatment R&D, andmarketing
Contribution to sustainable society
through services with high socialbenefits
4Actual Results for 1st quarter of FY2024
Evolution of healthcare business Accumulation of PHR (Personal Health Record) and establishment of health anddisease platform• Business development centered on “nanacara”, a support platform for patients and families- Epilepsy patient support pharmacy “nanacara pharmacy” opened in Osaka‐ Expanding diseases/indications covered by “nanacara”• Develop business using health and disease data platforms- Provide health and disease data management solutions(Healthcare Passbook™ application) using fundamental technologies
such as harmo® and blockchain technology【 nanacara pharmacy 】[Healthcare Passbook™ App: my melmo™]
Ability to integrate, store, and provide personal data with5
the consent of the individual *Image is for reference only.

Actual Results for 1st quarter of FY2024
Evolution of healthcare business Diversification of Healthcare services• Expansion of support for local governments‐ In a demonstration project to promote communication in Ina City, Nagano Prefecture, the conversation AI
robot "Romi" (provided by MIXI, Inc.) was used to alleviate problems with loneliness and isolation.

• Support “healthy management” of enterprises‐ Providing an electronic medication diary service to the transportation industry
to prevent health-related driving accidents caused by medications and diseases.

6Actual Results for 1st quarter of FY2024
Evolution of healthcare business Strengthening support to medical care institutions and healthcare providers• Expansion in scope of supporting clinical trials- expand support for universities and flagship hospitals that serve as the hub of regional medical care- strengthen cooperation with hospitals specializing in disease areas and academia• Development of healthcare services- Contact center specializing in the medical field and support for improving medication adherence Expansion of BPO and talent/HR services in the healthcare sector

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Actual Results for 1st quarter of FY2024
Comprehensive support for disease
prevention, treatment R&D, and marketing Comprehensive support from drug development, manufacturing, to sales and marketing- PVC（Pharmaceutical Value Creator） Model –•Strengthening drug discovery platforms that contribute to the creation of innovative drugs‐ Developed comprehensive consulting services for overseas bio ventures entering the Japanese market- Turned Hamamatsu Pharma Research into a CMIC Group subsidiary
to expand services in the early stages of drug discovery in cutting-edge
fields, using an original monkey pathological model that evaluates
the efficacy of drug candidate substances

8Actual Results for 1st quarter of FY2024
Comprehensive support for disease
prevention, treatment R&D, and marketing Comprehensive support from drug development, manufacturing, to sales and marketing- PVC（Pharmaceutical Value Creator） Model –•Accelerating the global expansion of CRO Business‐ Promoting DX of clinical trials- Alliance with CROs outside Japan•

Growth in MR dispatching services due to the boost in outsourcing activities

9Actual Results for 1st quarter of FY2024
Contribution to sustainable society
through services with high social
benefits
 Establish a management foundation that can respond promptly to changes inthe business environment•

Boost the value that employees autonomously demonstrate (Personal Business Value)•Early development and acquisition of diverse human resources- Fundamental review of evaluation and compensation systems

 Initiatives to combat climate changes•

Addressing climate change in line with TCFD recommendations•

Raising Global Environmental Awareness- Co-hosting the 15th "International Children's Drawing Contest" and workshop【Yuzuriha】 a next-generation education and10
international exchange hub

Consolidated income statement (overview)
FY2024 Q1

FY2023 Q1
AmountComposition
Ratio

Composition
ratio

AmountChangePercent
Change(¥ millions)(％)(¥ millions)(％)(¥ millions)(％)

Net sales

29,677100.0

18,087100.0(11,590)(39.1)

Operatingprofit

4,270

14.4

944

5.2(3,325)(77.9)

Ordinaryprofit

3,401

11.5

505

2.8

(2,896)(85.1)

Profitattributable toowners of parent

1,950

6.6

125

0.7(1,824)(93.6)

Earnings per share¥111.73¥7.42

Both sales and profits declined due to a decrease in municipal support services related to novel coronavirus infection and the conversion ofCMIC CMO Group into an equity-method affiliate in June 2023.
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Breakdown of Non-operating income and expenses/Extraordinary income andlosses/Income taxes/Profit (loss) attributable to non-controlling interests(¥ millions)(¥ millions)FY2024 Q1

FY2023 Q1

FY2023 Q1

FY2024 Q1

Non-operating income

32

13

Extraordinary losses

254

Interest income

10

Loss on retirement of non-current assets

13－

Subsidy income

113

Loss on sale of investment securities－4Other

19

9Loss on valuation of investment securities

11－

Non-operating expenses

901

452

Interest expenses

42

8

Income taxes

1,516

331

Foreign exchange losses

816

93

Profit attributable to non-controlling interests

(91)

43

Share of loss of entities
accounted for using equity method

15198

Tender offer related expenses－148272

Other12

Sales & Operating profit by reportable segment
FY2023 Q1

Amount (¥ millions)

FY2024 Q1

Amount (¥ millions)

Change(¥ millions)

Percentchange (%)

Pharmaceutical
S o l u t i o n s

Sales

20,494

14,220(6,274)(30.6)

Operating profit

1,722

1,191(530)(30.8)

H e a l t h c a r e
S o l u t i o n s

Sales

9,646

4,017

(5,629)(58.4)

Operating profit

2,945

228

(2,716)(92.2)

Sales

(463)

(150)

+313

－

Operating profit

(398)

(476)

(77)

－

Sales

29,67718,087(11,590)(39.1)

Operating profit

4,270944(3,325)(77.9)

Adjustments
Consolidated*Adjustments
Sales are internal elimination of transactions between reporting segments ,and sales that are not allocated to each reportable segment and are related to theCompany (holding company).
Operating profit represents corporate expenses that are not allocated to each reportable segment and are related to the Company (holding company).

Pharmaceutical Solutions: Revenues decreased due to the deconsolidation of CMIC CMO Group, and income decreased due to increasedlabor costs associated with the deconsolidation and higher compensation levels.
Healthcare Solutions: Revenues and earnings declined due to a decrease in municipal support services related to novel coronavirus
13infections.

Orders received / Backlog
FY2024 Q1

FY2023 Q1
Ordersreceived

Pharmaceutical
S o l u t i o n s
H e a l t h c a r e
S o l u t i o n s
Total

Backlog

Ordersreceived

Percent
ChangeBacklog

Percent
Change(¥ millions)(¥ millions)(¥ millions)(％)(¥ millions)(％)

20,514

76,23911,725(42.8)

66,820(12.4)

13,945

20,592

4,989(64.2)

15,604(24.2)

34,46096,832

16,715(51.5)

82,425(14.9)In Pharmaceutical Solutions, orders received and backlog were down YoY due to the exclusion of CMIC CMO Group fromconsolidation. If the results of CMIC CMO Group are deducted from the results of the same period of the previous year, orders
received and backlog for Pharmaceutical Solutions in the quarter were -13.2% and -3.4%, respectively, YoY.

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Sales composition ratio
FY2023 Q1

FY2024 Q1

Healthcare Solutions

Healthcare Solutions

32.0%

28.5%
22.
0%

SalesSales¥18,087million¥29,677million

Operating profit

Pharmaceutical Solutions

Pharmaceutical Solutions

68.0%

78.0%

¥4,270million

Operating margin 14.4%

Operating profit ¥944million
Operating margin 5.2%

15PharmaceuticalSolutions

Sales composition ratio of Pharmaceutical Solutions

FY2024 Q1

FY2023 Q1Market Solutions

26.2%

26.2%

Sales

Market Solutions

CRO

17.6％

Sales
¥20,494million
CDMO

0.1%

CDMO

0.1％
Operating profit¥1,191million

Operating margin

8.4%

Reference: including CMIC CMO Group as an equity method affiliate

31.8％
Operating profit

50.6％¥14,220million

CRO73.7％¥1,722million

Market Solutions

17.5%

Operating margin 8.4%

Sales

CRO¥21,371million

49.1％

CDMO

33.4％

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HealthcareSolutions

Sales composition ratio of Healthcare Solutions
FY2023 Q1

FY2024 Q1
Healthcare Revolution
30.8％

Sales

Site Support Solutions¥9,646million

28.1％

Sales

¥4,017million

Healthcare Revolution

Site Support Solutions

71.9％

69.2％

Operating profit¥2,945million

Operating margin 30.5％

Operating profit¥228million

Operating margin 5.7%

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Consolidated balance sheet (assets)(¥ millions)

100,000

107,590
11,806
24,6328,843
2,728

2022/9■ Cash equivalents(7,164)■ Trade receivables+62

67,874

19,034

11,870■ Inventory+1,657

17,055■ Other current assets+1,747

3,419
2,875

5,077
4,623

■ Non-current assets+1,35627,892

29,2482023/92023/12

16,9920(2,340)70,21550,00059,580Total assets

In the fiscal year ended in September 2023, tangible fixed assets, trade receivables, inventories, etc. decreased
mainly due to the conversion of CMIC CMO Group into an equity-method affiliate.

18Consolidated balance sheet (liabilities and net assets)(¥ millions)100,000

107,590
1,190■ Accounts payable

31,07916,91450,00017,136

41,269■ Other current liabilities

70,21585

67,874

19,462

17,954

10,0342,800

10,234
2,615

37,83336,822249

2022/92023/9(1,507)■ Other non-current
liabilities+199■ Interest-bearing debt
（excl. lease liabilities)(185)■ Net assets
0+164(1,011)2023/12In the fiscal year ended in September 2023, liabilities decreased mainly due to the conversion of CMIC CMO Group
into an equity-method affiliate.

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The results of the Tender offer for CMIC’s shares by Hokuto
Management Co., Ltd. and the upcoming schedule

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The results of the Tender offer for CMIC’s shares by Hokuto ManagementCo., Ltd. and the upcoming schedule On January 4, 2024, the tender offer for our common stock commenced by Hokuto Management (hereinafter referred to as the TenderOfferor) was consummated.
 The Tender Offeror was established on October 2, 2023 by Kazuo Nakamura, our CEO of the Chairman and Representative Director, andfalls under the so-called Management Buyout (MBO).
 The Tender Offeror plans to acquire any shares not acquired through the Tender Offer through a squeeze-out procedure (shareconsolidation).
 At the request of the Offeror, the Company plans to propose at the extraordinary general meeting of shareholders a partial amendment
to the Articles of Incorporation to abolish the share trading unit provision, subject to the share consolidation and the share consolidation
becoming effective.
 Since the share consolidation will result in the issuance of fractional shares, the Tender Offeror plans to deliver cash equivalent to thenumber of the Company’s shares held by shareholders of record as of March 29 (the day before the effective date of the shareconsolidation) multiplied by 2,650 yen, the same amount as the tender offer price.
 Upcoming schedule (tentative):
March 4 (Monday) : Extraordinary General Meeting of Shareholders (share consolidation and related amendments
to the Articles of Incorporation (total number of authorized shares)
March 4 (Monday) : Date of designation as Securities to Be Delisted
March 27 (Wednesday) : Last day of trading of the Company’s shares
March 28 (Thursday) : Delisting date
March 30 (Saturday) : Effective date of share consolidation

 For details, please refer to the disclosure material on our website.

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Cautionary statement:This translation is prepared and provided for readers’ convenience only. In the event of any
discrepancy between this translated document and the original Japanese document, the original
document shall prevail.
This material includes forward-looking statements based on assumptions and beliefs in light of theinformation currently available to management, and is subject to significant risks anduncertainties. Actual financial results may vary materially from the content of this material
depending on a number of factors. While this material contains information on pharmaceuticals(including compounds under development), this information is not intended to make any
representations or advertisements regarding the efficacy or effectiveness of their preparations,promote any kind of unapproved uses, nor provide medical advice of any kind.

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