M3, Inc.

Presentation Material

July 2021

Copyright © 2021 M3, Inc. All rights reserved.

The following presentation contains forecasts, future plans,management targets and other forward-looking projections relating toM3, 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 © 2021 M3, Inc. All rights reserved.

1

FY2021 Q1 Consolidated Results(mn yen)Sales

FY2020 Q1

FY2021 Q1

YoY

35,47846,403+31%

Operating
Profit11,25324,651+119%

Pre-tax
Profit11,222

24,763+121%

Net Profit

7,650

16,919+121%+38%

excludingMedlive
IPO
impactSteady start to the year
Copyright © 2021 M3, Inc. All rights reserved.

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FY2021 Q1 Consolidated Results by Segment(mn yen)FY2020 Q1 FY2021 Q1

YOY

Domestic

MedicalPlatform

Sales

13,612

18,932+39%

Profit6,200

8,179+32%

Evidence
Solution

Sales

4,725

4,833+2%

Profit803858+7%

CareerSolution

Sales

5,369

4,883-9%Profit2,364

2,466+4%

Site
Solution

Sales

3,668

5,329+45%

Profit140

520+272%

Emerging
Businesses

Sales

656711+8%

Profit37-180－Sales

8,242

12,662+54%

Profit1,960

12,952+561%

Overseas

Copyright © 2021 M3, Inc. All rights reserved.

 Marketing support
sales over +50%
 Temporary margincompression fromstaff reinforcement
 Recovery fromCOVID related
demand decrease Pharmacist
placement remains
weak Profit increase fromsales mix
improvement
 Continued strengthfrom previous year,large profit gains
despite newinvestments
 Healthy across all
regions 9.1 bn yen profit
from Medlive IPO

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FY2021 Q1 Consolidated Operating Profit Contribution(mn yen)
Robust US clinical
trials, healthyacross all otherregions such as
Asia and Europe
Continued
healthy
demand frompharma1,979

Recovery fromCOVID related
demanddecrease

Stockvaluation
changes

9,080
102

55

380-217107

13,3981,912
Profitincrease fromsales mix
improvement

Continuous
strength

24,651
15,571

11,253

FY20Adjust.

FY21* China IPO Related: Gains from deconsolidation minus IPO fees
Copyright © 2021 M3, Inc. All rights reserved.

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FY2021 Q1 Overview
COVID-19 Impact

MedicalPlatform Accelerated digital transformation in pharma marketing Structural fortification to accommodate rapid demand
expansion; temporary margin compression from upfront
investment on significant staff reinforcement++

EvidenceSolution

 Recovery seen from COVID related demand decrease Orders backlog increased to 29.3 bn yen from 27.3 bn yen in
Q4+CareerSolution

 Dampened activity for pharmacists placements due to COVID
 Physician related businesses recovering; vaccine
administration related demand for physicians frommunicipalities and corporates

-/+

Site
Solution Continued business strength from last year Expansion of vaccine administration support business formunicipalities and corporates+Overseas Healthy across all regions
 Significant profit contribution from Medlive IPO+

Copyright © 2021 M3, Inc. All rights reserved.

5m3.com Platform Strength

Copyright © 2021 M3, Inc. All rights reserved.

6

m3.com Platform Strength
PhysicianMembership(as of Q1 end)

FY19Q1FY21Q1

Total Number ofPhysician Logins(Days)FY19Q1FY21Q1

Stay Duration
per Login

FY19Q1FY21Q1FY19Q1FY21Q1

m3.com platform continues to strengthen. DX of physician
activity also in progress.
* vs FY2019 Q1

Copyright © 2021 M3, Inc. All rights reserved.

7

Pharmaceutical Sales & Marketing DX

Copyright © 2021 M3, Inc. All rights reserved.

8

Pharma Marketing Cost and TAM for M3
PresentFuture

M3’s RoleIndustryproductivity
improvementfrom DXMR
RelatedCosts
1.5 tn yen

Internet50 bn yen

97%
70~80%

3%

20~30%

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

200~300bn yen(1) InternetMarketingSupport(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 © 2021 M3, Inc. All rights reserved.

9

Pharmaceutical Marketing Service Orders Growth
Pharma Marketing Support
Orders Growth (vs FY2019Q1)
over4.0x
over2.5xContinued demand
from pharma since
FY20
Staff fortificationand project size
increase (utilizationof both internal andexternal resources)

FY2019Q1

FY2020Q1

FY2021
Q1

Pace of orders remain high. DX of pharma marketing infull swing with orders at 4x pre-COVID levels.
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eCSO：Medical Marketers
Typical CSO

Medical Marketer

Localized Physical Visits

Nationwide eDetails

Coverage80~150 physicians

500~1,000 physicians# of Details

150~200 per month

2,000~4,000 per monthInteraction

net 1~2 hrs/day

net 5~10 hrs/dayMethod

mainly physical visits

eDetails allow physician
profiling data
accumulation applicablefor customization

Medical Marketers relay information via full utilization of digital tools,curtailing time loss of travel and waiting, and visitation restrictions
Copyright © 2021 M3, Inc. All rights reserved.

11

COVID-19 Related Projects

Copyright © 2021 M3, Inc. All rights reserved.

12

M3’s COVID-19 Efforts
Vaccine & Treatment
Development

Vaccine Dissemination
Support

Vaccine Information for
Medical Sites

・Involved in mostly all
COVID-19 related
vaccine and treatment
trials in the US・Vaccine dissemination
support across municipalities
utilizing M3’s physiciannetwork
・Collaboration with ChangeInc., capitalizing on theirstrong network acrossmunicipalities

・Vaccine related
information provisionand support towards
medical sites (sponsoredby pharma companies)

Contribution to COVID-19 solutions via vaccine
dissemination support following efforts in clinical trials
Copyright © 2021 M3, Inc. All rights reserved.

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Vaccine Administration Support

Physician Dispatch

Team Dispatch

Venue Management

Corporate

Municipality

Medical Site

○

○

○

○

○

N/A

○

○

N/A

Vaccine administration services expected to support 2.7
million patients.
Copyright © 2021 M3, Inc. All rights reserved.

14

M3 Growth Strategy

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15

Business Scope Expansion and Growth Potential
2010
Country：

3 →20142018

5 (1.5x) →10 (3x) →Similar pace26 (4x) → of growth
expected
41 (4x) → over the
next 4 years

Business Types：

6 →

10 (1.5x) →Business Units

：

10 →

18 (2x)

Sales (bn)

： 14.0 → 37.0 (2.5x) → 94.5 (7x) →(Type x Country)→2022

Aggressive M&A to ensue in reaching growthpotentials exceeding 10~20x current levels…
Copyright © 2021 M3, Inc. All rights reserved.

16Medlive： Incubation Track Recordapprox.

120 bn yen
 Investment initiated in2013, returning over
100x in 8 years
 Continued provisionof M3 expertise acrossservices such as MRkun via licensing
contracts

approx.

100xapprox.

1.2 bn yen

Investment

Value of M3 Held
Shares; Closing
Price on IPO Day

Medlive growth acceleration expected from increased
autonomy and flexibility from IPO. Expected operating
profit appropriation of 9.1 bn yen in Q1 and 22 bn yen in Q2.
Copyright © 2021 M3, Inc. All rights reserved.

17

Increase in M&A
Number of Deals That Were Evaluated

267
186

60

FY1575

FY16111FY17144
80

FY18

FY19

FY20

FY21

M&A activity and pipeline continue rapid acceleration in linewith business expansion. Number of executions and size
are also increasing.
Copyright © 2021 M3, Inc. All rights reserved.

18

Annual Results
Sales

Operating Profit & Net Profit
169,198(mn yen)57,972(mn yen)Operating Profit
Net Profit

130,973
113,059

41,19834,33730,80027,48625,05024,15321,346
20,022
19,225

94,471
78,14364,66051,346

16,93816,061
13,73813,49336,759107 480 891

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

7,648

8,878

10,4286,031
5,598
3,990 4,803 3,486 4,492
3,597
2,677
1,683
2,363
895
1,938
255 5091,609 1,965
46 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(6m)9,294-93 -93FY
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20(6m)

Forecasts were not given due to unpredictable variables, basic
outlook is for continued growth.
Copyright © 2021 M3, Inc. All rights reserved.

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