M3, Inc.
Presentation Material
November 2022

Copyright © 2022 M3, Inc. All rights reserved.

0

The following presentation contains forecasts, future plans,management targets and other forward-looking projections relating to
M3, Inc. and/or its group. These statements are drawn fromassumptions of future events based on data currently available to us,
and there exist possibilities that such assumptions are objectively
incorrect and/or may produce differing actual results from thosementioned in the statements.
Furthermore, information and data other than those concerning theCompany and its subsidiaries/affiliates are quoted from public
information, and the Company has not verified and will not warrant its
accuracy or dependency.
M3, Inc.

Copyright © 2022 M3, Inc. All rights reserved.

1

FY2022 Q2 Consolidated Results(mn yen)Sales

FY2021
Q1-Q2

FY2022
Q1-Q2

YoY

97,647

112,616+15%

Operating
Profit61,94136,293-41%

Pre-tax
Profit62,23238,067-39%

Net Profit

42,74725,966-39%

Business growthrate at +17% YoY
excluding China IPO
related earnings in thesame period of theprevious year andstock valuation
gains/losses

Steady progress in business sales and profit growth
excluding special factors in the previous year
Copyright © 2022 M3, Inc. All rights reserved.

2

FY2022 Q2 Consolidated Results by Segment
FY2021
Q1-Q2

FY2022
Q1-Q2

YoY

MedicalPlatform

Sales

38,401

42,537+11%

Profit16,72518,762+12%

Evidence
Solution

Sales

10,132

14,003+38%

Profit

2,053

4,248

+107%

CareerSolution

Sales

8,180

8,366

+2%

Profit

3,445

3,464

+1%

Site
Solution

Sales

17,48018,779+7%

Profit

2,560

2,312

-10%

Emerging
Businesses

Sales

1,518

1,506

-1%

Profit

-429

90

－

Sales

24,39830,189+24%

Profit38,108

8,118

-79%

(mn yen)Domestic

Overseas

Copyright © 2022 M3, Inc. All rights reserved.

 In Pharmaceutical Marketing
e-Arming MR activities are
steady Other businesses also firm
Clinical trials and studies,including those related to COVID
are performing well

Contribution from vaccination
support business peaked in thesame period of the previous year

+15% profit excluding China
results and IPO related last year3M3’s Triple Growth Engine + CSV
1. IndividualBusiness
Development(Sagrada Familia)
Regions

９

10

11

１

２

３

４

５

６

７

Regions
８

９

10

11

１

ＳＳ ＥＳ
CA

OTHERS

OTHERS

 Continuous new
business entries

Businesses

Businesses

Businesses Pharma marketing /Clinical Scene DX

２

３

４

５

６

７

８

９

10

11

ＭＰ

８

ＳＳ ＥＳ

７

OTHERS

６

ＭＰ

５

ＳＳ ＥＳ

４

CA

３

ＭＰ

２

CA

Regions１

3. Ecosystem
Synergy
Creation

2. Ecosystem
Expansion Cross-cell synergy
maximization

4. Social Impact Creation → CSV
Copyright © 2022 M3, Inc. All rights reserved.

4

Growth Engine 1： Individual Business Development
Regions
９

10

11

１

４

５

６

７

Regions
８

９

10

11

OTHERS

ＳＳ ＥＳ
CA

３

１

Businesses

Businesses

Businesses

OTHERS

２

２

３

４

５

６

７

８

９

10

11

ＭＰ

８

ＳＳ ＥＳ

７

CA

６

ＭＰ

５

ＳＳ ＥＳ

４

CA

３

ＭＰ

２

OTHERS

Regions１

4. Social Impact Creation → CSV
Copyright © 2022 M3, Inc. All rights reserved.

5

FY2022 Q2 Overview
MedicalPlatform Although some pharmas, mainly foreign-affiliated companies,
are reducing their budgets, the overall situation remains solid
 EHR business has been steady with a set introduction of
DigiKar and DigiKar Smart

Evidence
Solution Backlog of orders is JPY31.1 bil. COVID-related projects(therapeutic drugs and vaccines) continue to make acontribution
 Clinical trials digitalization, DCT, etc. are also progressing

CareerSolution Steady on a basis excluding the impact of the COVID vaccine
 Continued growth in business for physicians

Site
Solution Steady top-line growth in normal business excluding COVID19 related business Continue to invest for future growth

Overseas Excluding China results, business profit growth is +15%
 Steady in all regions, especially North America and Asia
contribute
Copyright © 2022 M3, Inc. All rights reserved.

6

Pharmaceutical Sales & Marketing DX

Copyright © 2022 M3, Inc. All rights reserved.

7

Pharma Marketing Cost and TAM for M3
Present

FutureM3’s Role

Industry
productivity
improvementfrom DX

MR
RelatedCosts
1.5 tn yen

Internet
50 bn yen

97%
70~
80%

3%

20~
30%

700~800
bn yen(2) MR Activity
DX Support

200~300
bn yen(1) Internet
MarketingSupport(3) Data-driven
MarketingSupport= TAM

M3 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 © 2022 M3, Inc. All rights reserved.

8

Trend of Domestic Pharmaceutical Sales Reps (MRs)Historical Peak
65,752 MRs(000’s)70-1,095 -522

-950

-752
-2,533-2,742

60

51,848in FY2021-3,572-1,73850

40

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

In addition to a decrease in the number of MRs, some companies
have established MRs who work only online or by phone... The
trend toward sales efficiency is expected to continue*Ref: AnswersNews, Nov 22, 2021
*Estimation made with “No. of MR research 2022” by Mix for 2021 data Copyright © 2022 M3, Inc. All rights reserved.

9

Professional Staff Fortification Plan
Unit: Index with FY2019 as 100

375~500
Reduce the no. of
external consultants
while increasing theoverall number

100
M3
Employees

FY2019（pre-COVID）

Cost per
Staff

1

Approx.

40%

Approx.

60%

 Recruiter
reinforcement(fee scale).30%

ApproxApprox.

FY2021

Q2

Temporaryincreasedue tooutsourcing

 New grad
recruitment
fortification

70%

FY2022Q2

2

 HR capacity
increase

230

200

Staff Fortification
Initiatives

1.7

Normalizedwith properhires

Few years
from now…

1 Appeal potential
M3 career paths
and merit(skill acquirement,compensation, etc.)

Normalizedwith proper
hires

Copyright © 2022 M3, Inc. All rights reserved.

10Capacity Improvement of Professional M3 Staff
Internal no. of staff × Productivity per staff ＝

1.3x

FY21
Q2

FY22
Q2

Total capacity

1.4x

1.1x

FY21
Q2

FY22
Q2

FY21
Q2

FY22
Q2

Steady progress in efforts to improve the productivity ofprofessional staff in parallel with the staff fortification plan,and internal staff capacity increased by 40%
Copyright © 2022 M3, Inc. All rights reserved.

11

Hiring Progress of M3 Professionals
No. of Offers Accepted

Approx.

FY21 1H

1.8x

FY22 1H

Compared to the 1H of the previous year, the number of hires
has increased, but is lower than somewhat expected.
Prioritize business growth by adjusting the speed of external
consultant reduction
Copyright © 2022 M3, Inc. All rights reserved.

12

DX of the Clinical Scene

Copyright © 2022 M3, Inc. All rights reserved.

13

Potential in DX of Clinics
Current

Post DX

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

Advancement in DX of the clinical scene offers a complete
renewal of the patient experience
Copyright © 2022 M3, Inc. All rights reserved.

14

M3 DigiKar EHR Growth
Number of Sites Using M3 DigiKar
4,150

 Cumulative no. of
installations isapproximately 4,150,
making steadyprogress toward thegoal of 5,000
installations
 Co-selling with
DigiKarSmart further
increases the added
value of DigiKar

FY15

16

17

18

19

20

21

22

Incontestable #1 market share within cloud based digital
health records, reaching 120 million charts
Copyright © 2022 M3, Inc. All rights reserved.

15

Development of DigiKar Smart
No. of DigiKar Smart Users*
Unit: Index with FY21Q3 as 100

47,90017,300100
FY21Q34,400
FY21Q4FY22Q1FY22Q2

Steady growth of DigiKar Smart users* Quarterly sum of monthly UUs
Copyright © 2022 M3, Inc. All rights reserved.

16

Overseas

Copyright © 2022 M3, Inc. All rights reserved.

17

Number of Doctor Members and Panelists (Global)
Ratio of doctor members(As of June 2022)

More than 6 million doctor members and panelists, coveringover 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 © 2022 M3, Inc. All rights reserved.

18

Overseas Segment: Sales by Region
The Sales Trend(JPY MM)

Growth rate

24,386
North
America

EuropeAPAC

30,185+24%

13,280+31%

10,698+19%

10,140

9,016
5,229

FY2021H1

Medlive
contribution

6,207

Approx.

50%+*

FY2022H1

Steady growth due to growth drivers consisting of diverse
businesses* Growth rate excluding the results of Medlive (not subject to consolidation from this term) in the same period of the previous year
Copyright © 2022 M3, Inc. All rights reserved.

19

Growth Engine 2： Ecosystem Expansion(Sagrada Familia)
Regions
８

９

10

11

１

５

６

７

Regions
８

９

10

11

１

ＭＰ

４

OTHERS

ＳＳ ＥＳ
CA

３

Businesses

Businesses

Businesses

OTHERS

２

２

３

４

５

６

７

８

９

10

11

ＭＰ

７

ＳＳ ＥＳ

６

CA

５

ＳＳ ＥＳ

４

CA

３

ＭＰ

２

OTHERS

Regions１

4. Social Impact Creation → CSV
Copyright © 2022 M3, Inc. All rights reserved.

20

Business Scope Expansion and Growth Potential
2010

2015

2020

2022

Country：

3 →8 (2.5x) →11 (3.5x) →16 (5.5x)

Business Types：

6 →

15 (2.5x) →35 (6.0x) →38 (6.0x)

Business Units

：

10 →

24 (2.5x) →56 (5.5x) →69 (7.0x)

Sales (bn)

： 14.6 → 64.7 (4.5x) → 169.1 (12x) → 208.1 (15.0x)(Type x Country)

FY2021Aggressive M&A to ensue in reaching growthpotentials exceeding 10~20x current levels…
Copyright © 2022 M3, Inc. All rights reserved.

21

Growth Trend per Business Expansion Phases
Sales Trend (JPY)
Businesses added between FY2015 and FY2022
Businesses added between FY2010 and FY2015

Businesses

208 bilBusiness as of FY2010

 VIDAL
 US Clinical
Trial

~50
approx.

15x

~90

CAGR

（FY15~21）～20%

64 bil15 bil
FY2010~33~31

FY2015CAGR~70（FY10~15）

～15%

CAGR

（FY10~21）～15%

 Domestic Clinical
Trial US Career UK Advertisement
 MRkun/Research Career US Research

FY2021

2/3 of FY2021 sales were created from new businesses added after
2010, growth rates are also greater for new businesses entering themarketCopyright © 2022 M3, Inc. All rights reserved.

22

Increase in M&A
Number of Deals That Were Evaluated
350
267

60
FY15

75

FY16

111

FY17

144

FY18

186

FY19

170

FY20

FY21

FY22

Steadily continue to consider MA. Number of
executions and size are also increasing
Copyright © 2022 M3, Inc. All rights reserved.

23

“The White Jack Project”
Pre-Onset/
Healthy Person

After Onset/
Patient

General Public(consumer)

Phase 1 Happiness-i

Future expanding
priority areas

Phase 2 Rinkai Medical

HCP(e.g. wholesaler)

Traditional main
business domain

CancerPhase 3 Prevention
Phase 4 EBHS

Steady progress is also being made on the White Jack project,which realizes M3's mission from a more upstream perspective

Copyright © 2022 M3, Inc. All rights reserved.

24

Phase 3: M3 Cancer Prevention Program
Do you think cancer is an abnormal disease?

1 out of 2

90% ofFamily of 4

Probability that no one in a family of four
will develop cancer
1/2*1/2*1/2*1/2*1/2=1/16=6.25

Cancer is a disease that statistically involves more than 90% of the
population, and very few people are completely irrelevant
Copyright © 2022 M3, Inc. All rights reserved.

25

The Concept of “Cancer Prevention”

CANCER is a disaster that anyone can experience
Just as with earthquakes, heavy rains, and other disasters,

be prepared

The most powerful preparation ishaving the right knowledge

Copyright © 2022 M3, Inc. All rights reserved.

26

M3 Cancer Prevention Program
Normal Pattern

M3 Cancer Prevention Program

Basic
Knowledge

 1 in 2 people will be affectedin their lifetime
 Insufficient awareness ofthe disease itself relative tothe frequency of experience Training to increase the levelof prior knowledge

CancerScreening 30% - 50% of the
population receiving
medical checkups

Cancerdiagnosed
Choosinga hospital/doctor Panic/wrong behavior

 80% or more Improved access tocomprehensive medical
examination
 Actions in accordance withpreliminary simulations
 A primary consultation desk
also available (Image of the primary
response to an automobile accident by aninsurance company) A hospital I happened tovisit Guided by PSP to the best
medical facilities Parents of employees andspouses also covered

Copyright © 2022 M3, Inc. All rights reserved.

27

Phase 4 EBHS: Calculation Image“EBHS,” a health index calculated based on the results of medical examinations

Evidence Based Health Score (Health score based on scientific evidence)
Scientific prediction of life
expectancy on individuals

28.5 years÷(Age 60, Male)

Life expectancy ofJapanese male at age 60

23.9 years＝

Ichiro Tanaka

Scientific prediction
based on individual
lifestyle habits, healthcheck up data, etc.

Ichiro Tanaka’s EBHS

119

Scores are calculated based on expected life expectancy by generating
models of studies with high levels of evidence from thousands of medical
papers. Compared to conventional health indexes, this system canstrongly influence consumer’s health awareness and behavior change
Copyright © 2022 M3, Inc. All rights reserved.

28

Sample Report (for individuals)
Score reliability, comparison to life expectancy, expected life expectancy

Score status(green, yellow, red)Comparison
with life
expectancy
Expected life
expectancy(Non-disclosure isalso possible)

Copyright © 2022 M3, Inc. All rights reserved.

29

Start of Y’S Career Business (October 2022)
 Approximately 600,000 people withdisabilities employed in the private
sector The percentage of companies thathave achieved the legally mandated
employment rate of persons withdisabilities is less than half that ofprivate companies in Japan, and theretention rate of employees after one
year of employment is as low as 61%
 Introduce job opportunities thatmatch the experience, ability, aptitude,
disability characteristics, andphysical condition of the job seeker
 Physical therapists, etc. provide
advice necessary for return to workand duties, and guide rehabilitation
services as appropriate

Copyright © 2022 M3, Inc. All rights reserved.

30

Growth Engine 3： Ecosystem Synergy Creation
Regions
９

10

11

１

４

５

６

７

Regions
８

９

10

11

OTHERS

ＳＳ ＥＳ
CA

３

１

Businesses

Businesses

Businesses

OTHERS

２

２

３

４

５

６

７

８

９

10

11

ＭＰ

８

ＳＳ ＥＳ

７

CA

６

ＭＰ

５

ＳＳ ＥＳ

４

CA

３

ＭＰ

２

OTHERS

Regions１

4. Social Impact Creation → CSV
Copyright © 2022 M3, Inc. All rights reserved.

31

M3’s Paradigm Shift
Movement 1: 2000-2009

Movement 2: 2010-2019

Internet Service

e x Real Operations

Ecosystem Synergies

 e-Clinical Trials
 M3 Career 7P Projects
 Monetization
through projects
with autogenic
synergygeneration

 MR-kun Family Market Research(Job placement forphysicians)

Copyright © 2022 M3, Inc. All rights reserved.

Movement 3: 2020-

32

１

２

３

４

0

1

3

6

・・・

ｎ

Number ofbusinesses

Synergy
Links

Copyright © 2022 M3, Inc. All rights reserved.

nC2

33

Business Scope Expansion and Growth Potential
2010

2015

2020

2022

Country：

3 →8 (2.5x) →11 (3.5x) →16 (5.5x)

Business Types：

6 →

15 (2.5x) →35 (6.0x) →38 (6.0x)

Business Units

：

10 →

24 (2.5x) →56 (5.5x) →69 (7.0x)

Sales (bn)

： 14.6 → 64.7 (4.5x) → 169.1 (12x) → 208.1 (15.0x)(Type x Country)

FY2021Business synergy potential: 69Ｃ2 ＝ 2,346 linkage
potential
Copyright © 2022 M3, Inc. All rights reserved.

34

Ecosystem Synergy Value Creation
Ecosystem Synergy Profit Contribution (JPY Bil.)

4 to 5More than

1.5x

2 to 3

FY21 H1

FY22 H1

The next decade will encompass synergies with both internal andexternal partners, in order to create meaningful solution for
healthcare issues and substantial social impact*Sum of value additive projects spanning across multiple business lines and data utilization. Definitions will be reviewed as necessary, including this time.
Copyright © 2022 M3, Inc. All rights reserved.

35

４. Social Impact Creation → CSV
８

９

10

11

１

４

５

６

７

８

９

10

11

OTHERS

ＳＳ ＥＳ
CA

３

Businesses

Businesses

Businesses

OTHERS

２

４

５

６

７

８

９

10

11

ＭＰ

７

３

ＳＳ ＥＳ

６

２

CA

５

１

ＭＰ

４

ＳＳ ＥＳ

３

CA

２

ＭＰ

１

Regions

Regions

OTHERS

Regions

4. Social Impact Creation → CSV
Copyright © 2022 M3, Inc. All rights reserved.

36

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 © 2022 M3, Inc. All rights reserved.

37

COVID Vaccine and Treatment Related Initiatives
Vaccine Administration
Corporates

Japan

Overseas

Municipalities〇〇(174 Corporates)(249 Municipalities)✕✕

Clinical Trials
Medical Sites〇(Vaccines,
treatments,
boosters)〇(Vaccines,
treatments,
boosters)

Vaccine services to support 10.9 million administrations, alongwith support for development of drugs and vaccines
domestically and abroad. Omicron strain-compatible bivalentvaccination started and orders received from both municipalities
and corporates
Copyright © 2022 M3, Inc. All rights reserved.

38

M3’s CSV Impact for Patients
Online Visitation Support During COVID“Menkai-kun” utilized at 105 sites, by over 250,000 patientsand families
As of April 2022, since service launch

Professional Advice Provision for Health Concerns
Offering physician answers to daily health concerns;
300,000+ posted questions gathering over
75 million UU views annually
FY2021

Granting Wishes for Severely Ill Patients
26 wishes granted through the CaNoW program; over 1.5
million PVs of videos and articles documenting the grants
As of April 2022, since service launch in 2019

In-Office Time Reduction
Reduced approx. 23.7 million hours of in-office lobby
wait-time for patients
FY2021; based on 24 million receptions* CSV = Creating Shared Value
Copyright © 2022 M3, Inc. All rights reserved.

39

M3’s CSV Impact for Medical Professionals
Information Provision for Medical Professional Members
9.2 million views via information delivery such as Webinars
FY2021

Medical Examination Support

Supporting medical examinations through management of
information across 120 million electronic health records,
domestically and abroad
As of FY2021

Productivity Improvement for Pharma Companies

Distribution of 110 million e-details = workload of 55,000 MRs(more than total number of MRs in Japan)
FY2021

Actualizing M3’s mission across various areas, to reduce unnecessary medical
costs and to support healthier lives using digital technologies… social
contribution through business creation* CSV = Creating Shared Value
Copyright © 2022 M3, Inc. All rights reserved.

40

Annual Results
Sales

Operating Profit & Net Profit(mn yen)

208,159(mn yen)

95,141

Operating Profit*
Medlive IPO Impact
Net Profit

169,198

66,10864,210130,973

57,972

113,059
94,471

41,19878,14334,33730,80027,48624,15325,05021,34620,022
19,225
16,93816,061
13,73813,49364,66051,34636,759107 480

14,646 26,007
19,0408,534
5,729
11,811
2,276
7,475
891
1,563 3,854

9,294 8,87810,428
7,648
6,031
5,598
3,990 4,803
1,683 2,677 3,597
3,486 4,492
46 255 509 895
1,609 1,965 2,363 1,938
62 136 279 493 991

FY
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21(6m)-93 -93FY
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21(6m)

Basic outlook is for continued business growth excluding
Medlive IPO impact in FY21
*FY2021 excludes gains related to China IPO

Copyright © 2022 M3, Inc. All rights reserved.

41