M3, Inc.
Presentation Material
July 2023

Copyright © 2023 M3, Inc. All rights reserved.

0

FY2023 Q1 Consolidated Results(mn yen)FY2022 Q1

FY2023 Q1

YoY

Sales

56,99657,396+1%

Operating
Profit18,69518,004-4%Pre-tax
Profit19,748

19,831+0%

Net Profit

13,487

13,554+0%

YoY growth inbusiness
excluding Covid
related revenues
sales +11%

Normal business off to a good start as expected on acompany-wide basis
Copyright © 2023 M3, Inc. All rights reserved.

1

Consolidated Sales Trends and COVID Impact
Unit: mn yen

56,996
46,403～8,100COVID related

57,396～3,000+11%～2,100(clinical trials,
vaccination support,
promotion oftherapeutic drugs andvaccines, etc.)

35,478Regularbusinesses

FY2020Q1

FY2021Q1

FY2022Q1

FY2023
Q1

Covid contribution down by more than 5 billion in the quarter,
offset by growth in regular business… Largest Covid contributionof 8.1 billion in FY22Q1*, resulted in largest quarterly decline*FY22 Actuals: Q2 ~6.4 Bn, Q3 ~6.2 Bn, Q4 ~3.5 Bn

Copyright © 2023 M3, Inc. All rights reserved.

2

FY 2023 Q1 Consolidated Results by Segment
FY2022Q1

FY2023
Q1

YoY

Sales

20,223

21,947+9%

Profit

8,786

8,904

+1%

Sales

7,174

6,965

-3%

Profit

2,235

1,885

-16%

CareerSolution

Sales

5,464

5,588

+2%

Profit

2,830

2,663

-6%

Site
Solution

Sales

10,220

7,663

-25%

Profit

1,448

831

-43%

Sales

702

552

-21%

Profit

-173

-126

-

Sales

14,921

15,715+5%

Profit

4,040

3,679

-9%

(mn yen)MedicalPlatform
Evidence
Solution
Domestic

Emerging
Businesses
Overseas

Copyright © 2023 M3, Inc. All rights reserved.

 Pharmaceuticalmarketing: improving
trend compared to Q4,
essential digitaltransformation isprogressing
 DX of the Clinical Scene:
Steady growth in both
EHR and DigiKar Smart Order backlog: 31 bil. yen Excluding Covid related
clinical trials, sales +11%
 Business forpharmacists recovering
 Sales +9% excluding
Covid related revenues
 Sales excluding Covid
related revenues +28%
 Sales +14% excluding
Covid US slowdown due toclinical trial business Europe and APAC region
steady3

Budget Progress in FY2023 Q1
Sales
Initial outlook

Operating profit～58 bn～16 bnMedicalPlatform
Evidence
Solutions
CareerSolutions
Site
Solutions
Overseas
Other/
Adjustments
FY23Q1 Act.

57.4 bn

18.0 bn

Overseas business is behind initial forecasts, but othersegments are progressing well
Copyright © 2023 M3, Inc. All rights reserved.

4

M3’s Triple Growth Engine + CSV
1. Ecosystem
Expansion

2. IndividualBusiness
Development(Sagrada Familia)
Regions (12 areas)
６７

８

Regions (12 areas)

Regions (12 areas)
９

10

11

１

３

４

５

６

７

８

９

10

１

11

ＭＰ

２

CS ＳＳ ＥＳ
OthersOthers Pharma marketing/ Clinical Scene DX

Businesses (30 - 50)

Businesses (30 - 50)

Businesses (30 - 50)

 Continuous new
business entries

２

３

４

５

６

７

８

９

10

11

ＭＰ

５

CS ＳＳ ＥＳ

４Others３

CS ＳＳ ＥＳ

２ＭＰ

１

3. Ecosystem
Synergy
Creation Cross-cell synergy
maximization

4. Social Impact Creation → CSV
Copyright © 2023 M3, Inc. All rights reserved.

5

Growth Engine 1： Ecosystem Expansion(Sagrada Familia)
７８Regions (12 areas)
９

10

11

１

４

５

６

７

８

Regions (12 areas)
９

10

11

OthersCS ＳＳ ＥＳ

３

１

Businesses (30 – 50)

Businesses (30 – 50)

Businesses (30 – 50)

Others

２

２

３

４

５

６

７

８

９

10

11

ＭＰ

６

CS ＳＳ ＥＳ５ＭＰ

４CS ＳＳ ＥＳ

３ＭＰ

２OthersRegions (12 areas)
１

4. Social Impact Creation → CSV
Copyright © 2023 M3, Inc. All rights reserved.

6

Leverage 3 Major Resources to Solve Healthcare Issues

6.5 mil. registered doctors worldwide

Healthcare
Issues×

Overwhelming
Platform

Top-notch technical professionals

State-of-the-art Technology
Experts from varied fields unite

Problem Solving Skills

Copyright © 2023 M3, Inc. All rights reserved.

7

Business Scope Expansion and Growth Potential： 2010

2015

2020

2022

Country：

3 →8 （2.5x） →11 （3.5x） →17 （5.5x）

Business Types：

6 →

15 （2.5x） →35 （6.0x） →38 （6.0x）

Business Units(Type x Country)

：

10 →

24 （2.5x） →56 （5.5x） →71 （7.0x）

Sales (bn)

： 14.6 → 64.7 （4.5x） → 169.1 （12.0x） → 230.8 （16.0x）

Aggressive M&A to ensue in reaching growthpotentials exceeding 10~20x current levels…
Copyright © 2023 M3, Inc. All rights reserved.

8

Growth Image per Business Expansion Phases
Sales Trend (JPY)
Businesses added after FY2022
Businesses added between FY2015 and FY2022～600 bilAssumption～130

1/4 of existing
businesson top

～150

CAGR
～20%

～200

CAGR
～15%

～120

CAGR
～10%

Businesses added between FY2010 and FY2015
Business as of FY2010

230.8 bil
～60

15 bil
FY201064 bil

～100

～33
～31

～70

FY2015

FY2022

FY2027

Aim to continue to grow business as before through new
business development, new business growth, andexisting business growth
Copyright © 2023 M3, Inc. All rights reserved.

9

Sales Composition Ratio: Past and Future Image
Consolidated Sales Composition Ratio
100%= JPY 230.8bil.
3%
6%

11%

22%

22%

24%

47%

50%

Overseasbusinesses
composition
ratio 30～40%

27%

34%

52%

91%

62%

50%

Other
businesses

55%
26%

16%

29%

26%

Pharma mktg
supportcomposition
ratio 10～20%

23%

FY2005 2010 2015 2018 2020 2021 2022

Domestic businesses24%

JPY 600bil.

2027

The pharmaceutical marketing business itself will continue togrow, but overseas/other domestic businesses are expected to
grow faster
Copyright © 2023 M3, Inc. All rights reserved.

10Trend in M&A Volume: Programmatic M&A Strategy
11

11

5

5

Domestic
Overseas

4
6

6

1
3

FY2021

FY2022

FY2023
Q1

M&A completed with approximately 10 companies annually,
will continue to actively pursue M&A opportunities.
FY23: 3 projects already conducted abroad, Scribendi,
Med Planet, and businesses acquired from Kantar Group
Copyright © 2023 M3, Inc. All rights reserved.

11

Business Expansion Creation Flow

Structural
Differentiation

Reinforcementof Ecosystem

Investment Target
Expansion

Self-reinforcing expansion cycle = "superbly capable staff" basealso expands, and continuity is further strengthened... "businesssnowball" to multiply rapidly
Copyright © 2023 M3, Inc. All rights reserved.

12

Growth Engine 2： Individual Business Development
Regions (12 areas)
６７

８

Regions (12 areas)
９

10

11

１

５

６

７

８

Regions (12 areas)
９

10

11

１

ＭＰ

４

OthersCS ＳＳ ＥＳ

３

Businesses (30 – 50)

Businesses (30 – 50)

Businesses (30 – 50)

Others

２

２

３

４

５

６

７

８

９

10

11

ＭＰ

５

CS ＳＳ ＥＳ

４Others３

CS ＳＳ ＥＳ

２ＭＰ

１

4. Social Impact Creation → CSV
Copyright © 2023 M3, Inc. All rights reserved.

13

Pharmaceutical Sales & Marketing DX

Copyright © 2023 M3, Inc. All rights reserved.

14

Pharma Marketing Cost and TAM for M3
Present= TAM

MR
RelatedCosts
1.5 tn yen

Internet
50 bn yenM3’s Role

FutureIndustry
productivity
improvementfrom DX

97%

3%

70
～80%

700-800
bn yen20～30%

200-300
bn yen(2) MR Activity
DX Support(1) Internet
MarketingSupport(3) Data-driven
MarketingSupportM3 involvement to go beyond the bounds on the internet
to improve productivity across the entire industry
Ref: M3 survey and estimate; numbers are approximate
Copyright © 2023 M3, Inc. All rights reserved.

15

Trend of Domestic Pharmaceutical Sales Reps (MRs)Historical Peak
65,752 MRs(000’s)-1095 -52270-950 -752
-2533
-2742

60

-3572
-1738

50

40

49,682
in FY2022-2166

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

In addition to a decrease in the number of MRs, increasing numberof contract reps and online reps who work exclusively online or byphone.... The trend toward sales efficiency is expected to continue* Source: MR Certification Center “2023 MR White Paper”

Copyright © 2023 M3, Inc. All rights reserved.

16

Professional Staff Fortification Plan
Unit: Index with FY2019 as 100

375~500

Reduce the no. of
external consultants
while increasing theoverall number

Approx.

100
Approx.

M3
Employees

Approx.

35%

 Recruiter
reinforcement25%(fee scale)

Approx.

65%

75%

FY2019FY2022

FY2023

Few years
from now…

1

1.8

1.6

1

(pre-COVID)

Cost perStaff

 HR capacity
increase

250

230

Staff Fortification
Initiatives

Q1

Q1

Temporaryincreasedue tooutsourcing

Normalizedwith proper
hires

Normalizedwith proper
hires New grad
recruitment
fortification
 Improve costs
while increasing
headcount

Professional staffing, with the number of hiring decisions
up by approximately 2x YoY
Copyright © 2023 M3, Inc. All rights reserved.

17

DX of the Clinical Scene

Copyright © 2023 M3, Inc. All rights reserved.

18

DX of Clinics: Creating a New Patient Experience
Current

Post DX (new patient experience)

AccessLong waiting timein lobbies

Online reservations

Diagnosis

OfflineOnline/Offline Hybrid

Payment

Wait to pay atservice desk

Head straight home(digital payments)

Rx

Local pharmacy

Delivered to homeor officeMedical
Records

Difficult access

Review own healthrecords online

Midnight
Emergencies

Wait until nextmorning

24/7 Online Service

Creating a completely different patient experience through“DigiKar Smart”
Copyright © 2023 M3, Inc. All rights reserved.

19

M3 DigiKar EHR Growth
Number of Sites Using M3 DigiKar

5,000

 Cumulative number of
installations isapproximately 5,000.
Steady progress Co-selling with
DigiKarSmart further
increases the added
value of DigiKar

FY15 16

17

18

19

20

21

22

23

Incontestable #1 market share within cloud based digital healthrecords, reaching 170 million charts
Copyright © 2023 M3, Inc. All rights reserved.

20

DX of Clinics： DigiKar Smart
Medical Institutions：Managing System

Appointment
AutoReception

Next
Appointment

Patients：

M3 DigiKar Smart
Payment

Consultation

Mobile App

Linking to
EHR

12,000 reviews with a rating of 4.6 from users, new patient
experience created and highly evaluatedTaken from the following URL, as of July 19, 2023
https://apps.apple.com/jp/app/m3%E3%83%87%E3%82%B8%E3%82%AB%E3%83%AB%E3%82%B9%E3%83%9E%E3%83%BC%E3%83%88%E8%A8%BA%E5%
AF%9F%E5%88%B8/id1563102530

Copyright © 2023 M3, Inc. All rights reserved.

21

No. of DigiKar Smart Users
Unit: Index with FY21Q3 as 1

2,067
 Users are rapidly
penetrating DigiKar
Smart as the clinic's
infrastructure.
12 times higher thanin the previous year

1,368
1,070

 Video call has been
added and is
expanding as an
infrastructure fortelemedicine

479
1

44

FY21
Q3

FY21
Q4

173
FY22
Q1

FY22
Q2

FY22
Q3

FY22
Q4

FY23
Q1

* Quarterly sum of monthly UUs
Copyright © 2023 M3, Inc. All rights reserved.

22

Ecosystem Synergy: Medical Data Business
Unit: Index with FY2022 as 100

Sales of Medical Data Business*

375

3.75x
100

FY2022Q1

FY2023Q1

Medical data business (actual medical practice, physician practicestandards, etc.) also grew significantly along with the increase in thevolume of data accumulated. Steady creation of ecosystem synergies* Target: Real World Data, Estimation related services (part of Pharmaceutical Marketing business)
Copyright © 2023 M3, Inc. All rights reserved.

23

Number of Clinics Covered by M3 Group
Unit: Number of clinics using any of M3 services

12,0005,400

June-216,300

June-22

June-23

Rapid expansion of clinic coverage (1.9x YoY) through organic
growth as well as M&A. Plans to offer a wide range of DX
promotion services, including EHR, in-hospital operational
efficiency, and patient tools
Copyright © 2023 M3, Inc. All rights reserved.

24

Overseas

Copyright © 2023 M3, Inc. All rights reserved.

25

Number of Doctor Members and Panelists (Global)
Ratio of doctor members(As of June 2023)

Including regions not mentioned above, more than 6.5 million
doctor members and panelists, covering over 50% of doctors
worldwide*The no. of doctors in Japan is based on data from the Ministry of Health, Labour and Welfare (2022).
The no. of doctors by other countries is based on the latest data from WHO and other sources

Copyright © 2023 M3, Inc. All rights reserved.

26

Overseas Segment: Sales by Region
Unit: JPY MM

Growth rate

Covid related
sales within

14,919North
America

Europe
APAC

6,510

5,439

15,704

Excluding Covid
related earnings+5% +14%

6,389

Excluding Covid
related earnings

5,945

+9%

+18%

North America
Clinical trials business• Renewal of management
structure, staff fortificationand training for future growth• Implemented at a time when
the impact of Covid has
subsided

APAC

2,970

3,369

FY2022Q1

FY2023Q1+13%

Rapid growth after Covid has
slowed down. Growth levels are
returning to normal

Accelerating new initiatives for the future
Copyright © 2023 M3, Inc. All rights reserved.

27

Overseas Growth Trends by Business (FY)
Unit: JPY 100MM

Service forDoctors(Platform for doctors in North
America, Europe, and Asia and
EHR)(M3 Global Research:
Expanding in North America,
Europe, and Asia)

Clinical Trials

Career for
Doctors(Clinical Trials sites in North
America, growing into one of
the top 5 companies in the US)(Human resources businesscentered on doctors in North
America and Europe)

250
190
140

Approx.

160

2.1x

110

130
98

180
Approx.

1.8x

68 77
29

19 20 21 22

19 20 21 22

93
Approx.

3.2x

19 20 21 22

47 52

75

99
Approx.

2.1x

19 20 21 22

Achieve growth trends in various business types* Based on each subsidiary's principal business, aggregated by fiscal year
Copyright © 2023 M3, Inc. All rights reserved.

28

Two Businesses Acquired from Kantar Group
Kantar Health Profiles

Kantar Media Healthcare Research

Location: New Jersey, London

Location: New YorkNature of business: global HCP survey panel
business

Nature of business: reporting services for the US
healthcare industry

 Global panel of more than 140,000 HCPs,
mainly in the US and Europe Many global clients, including researchcompanies, consulting firms andpharmaceuticals
 Expands existing businesses of M3GR

 Data and research reports on media usage
trends of HCPs and patients as a
subscription service
 De facto industry standard used by many US
healthcare-related advertising agencies andmedical media companies New service offering for M3 GR

Expect synergies with M3 Global Research, such as
expanding the panel of HCPs, reducing costs bycomplementing the panel, and creating new businesses
Copyright © 2023 M3, Inc. All rights reserved.

29

Growth Engine 3： Ecosystem Synergy Creation
Regions (12 areas)
６７

８

Regions
Regions (12 areas)
areas)
９

10

11

１

５

６

７

８

Regions (12 areas)
９

10

11

１

ＭＰ

４

OthersCS ＳＳ ＥＳ
Others３

Businesses (30 – 50)

50

Businesses
Businesses (30(30 –– 50)
50)( – 50))Businesses (30
30

２

２

３

４

５

６

７

８

９

10

11

ＭＰ

５

CS ＳＳ ＥＳ

４Others３

CS ＳＳ ＥＳ

２ＭＰ

１

4. Social Impact Creation → CSV
Copyright © 2023 M3, Inc. All rights reserved.

30

Business Scope Expansion and Growth Potential

2010

2015

2020

2022

Country：

3 →8 (2.5x) →11 (3.5x) →17 (5.5x)

Business Types：

6 →

15 (2.5x) →35 (6.0x) →38 (6.0x)

Business Units

：

10 →

24 (2.5x) →56 (5.5x) →71 (7.0x)

Sales (bn)

： 14.6 → 64.7 (4.5x) → 169.1 (12.0x)→ 230.8 (16.0x)(Type x Country)

Copyright © 2023 M3, Inc. All rights reserved.

31

Cross-Business Synergy Creation Potential
１

２

３

４

0

1

3

6

・・・

ｎ

Number ofbusinesses

Synergy
Links

nC2

Synergy potential between businesses: 71Ｃ2 = 2,485
possible linkages
Copyright © 2023 M3, Inc. All rights reserved.

32

“The White Jack Project”
Pre-Onset/
Healthy Person
General Public(consumer)

After Onset/
Patient

Future expanding
priority areas

Phase 1 Happiness-i
Phase 2 Rinkai Medical
Phase 3HCP

(e.g. wholesaler)

Traditional main
business domain

CancerPrevention

Phase 4 ＥＢＨＳ
Phase 5

Steady progress is also being made on the WhiteJack project, which realizes M3's mission from amore upstream perspective
Copyright © 2023 M3, Inc. All rights reserved.

33

Expand Coverage of Enterprise Services
Number of employees covered bycorporate services
Unit: 10,000 persons

170*

Approx.

78

1
FY
19

18

19

20

21

22

130x

Covers approximately 1.7
million employees in FY23Q1,
with the following services
under development
 EBHS Life
 Cancer prevention, PSP Ask Doctors
 Booking & conducting
medical check-ups
 Employee health data
management
In addition to Happiness
Partners, the introduction of
EBHS Life is gradually
expanding. Dispatch ofindustrial physicians and stresschecks also supported

23Q1

Steadily expanding business base to create ecosystemsynergies as well. Plans to expand both the number of people
covered and services*About 800,000 additional people is added from FY2023 for dispatching industrial physicians and providing stress check services
Copyright © 2023 M3, Inc. All rights reserved.

34

Social Impact Creation
Regions (12 areas)
６７

８

Regions
Regions (12 areas)
areas)
９

10

11

１

５

６

７

８

Regions (12 areas)
９

10

11

１

ＭＰ

４

OthersCS ＳＳ ＥＳ
Others３

Businesses (30 – 50)

50

Businesses
Businesses (30(30 –– 50)
50)( – 50))Businesses (30
30

２

２

３

４

５

６

７

８

９

10

11

ＭＰ

５

CS ＳＳ ＥＳ

４Others３

CS ＳＳ ＥＳ

２ＭＰ

１

4. Social Impact Creation → CSV
Copyright © 2023 M3, Inc. All rights reserved.

35

SDGs and CSV: M3's CSV positioning
ＣＳＶ

ＳＤＧｓ
Sustainable Development Goals

Creating Shared Value

International objectives thatgovernments, businesses andindividuals in all countries aim toachieve with regard to human rights,
the environment and development

Initiatives by companies to solve
social problems through their corebusiness

Positioning forcompanies

Each company fulfills its
responsibilities towards internationaltargets

Balancing corporate growth andsolving social issues

Relevance tocorporatemissionNot necessarily linked to thecompany's mission

Fully consistent with corporate
mission/purpose(Development goals which are possible to sustain)

Detail(Creation of shared values)

Under M3’s mission of “Making use of the Internet to increase, as much as possible,
the number of people who can live longer and healthier lives, and to reduce, as muchas possible, the amount of unnecessary medical costs,” we are also committed to
SDGs through its CSV activities

Copyright © 2023 M3, Inc. All rights reserved.

36

M3’s CSV Impact (1/2): Patients/End Users
Providing a Seamless Healthcare Experience
Number of medical consultations using Digikar Smart: 1MM
FY202229.3 million hours of patient waiting time reduced
FY2022, from a total of about 27 million receptions

Professional Advice Provision for Health Concerns
Offering physician answers on-line to daily healthconcerns; 300,000+ posted questions gathering over67 million UU views annually
FY2022Granting Wishes for Severely Ill Patients
37 wishes granted through the CaNoW program;over 1.5 million PVs of videos and articles documenting the grants
As of April 2023, since service launch in 2019

Support for corporate health management andemployee health promotion
Accelerate efforts in pre-symptomatic state and preventive
medicine, with approximately 800,000 employees covered
FY2022* CSV = Creating Shared Value
Copyright © 2023 M3, Inc. All rights reserved.

37

M3’s CSV Impact (2/2): Medical Professionals
Information Provision for all HCPs

Over 12 million viewers in total for web conferences, etc.
FY2022

Medical Examination Support

Supporting medical examinations throughmanagement of information across 200 million
electronic health records, domestically and abroad
As of FY2022

Productivity Improvement for Pharma Companies
Distribution of 120 million e-details = workload of
60,000+ MRs (more than total number of MRs in Japan)
FY2022

Actualizing M3’s mission across various areas, to reduce
unnecessary medical costs and to support healthier lives using
digital technologies* CSV = Creating Shared Value
Copyright © 2023 M3, Inc. All rights reserved.

38

FY2023 Outlook

Copyright © 2023 M3, Inc. All rights reserved.

39

Annual Results
Sales

Operating Profit(mn yen)250,000(mn yen)

95,141

Operating profit*.
Medlive IPO Impact

230,818
208,159

75,00071,983

169,198

64,21057,972130,973
113,059
94,47134,33730,80027,48625,05020,022

78,14364,66051,346

16,061
7,648 13,738
9,294
4,803
6,031
1,683 3,597
2,677 3,990
46 255 509 895

36,75914,646 26,007
8,534
19,0402,276 5,729
11,811
891
7,475
3,854
1,563
107 480FY
E
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

(6m)

-93

FY
E
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23(6m)

Steady growth expected in the current financial year
*FY2021 excludes gains related to China IPO
Copyright © 2023 M3, Inc. All rights reserved.

40