M3, Inc.

Presentation Material

July 2022

Copyright © 2022 M3, Inc. All rights reserved.

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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 © 2022 M3, Inc. All rights reserved.

1

FY2022 Q1 Consolidated Results
FY2021 Q1

FY2022 Q1

YoY

Sales

46,40356,996+23%

Operating
Profit24,651

18,695-24%

Pre-tax
Profit

24,763

19,748-20%

Net Profit

16,91913,487-20%(mn yen)Growth rate of thebusiness excluding
stock valuation
gains/losses andChina IPO-related
earnings in thesame period of theprevious fiscal year

YoY+22%Business itself is growing at a steady rate, and the current
fiscal year is off to a solid start
Copyright © 2022 M3, Inc. All rights reserved.

2

FY2022 Q1 Consolidated Results by Segment(mn yen)FY2021Q1

FY2022Q1

YoY

Domestic

MedicalPlatform

Sales

18,932

20,223+7%

Profit8,179

8,786+7%

Evidence
Solution

Sales

4,833

7,174+48%

Profit858

2,235+160%

CareerSolution

Sales

4,883

5,464+12%

Profit2,466

2,830+15%

Site
Solution

Sales

5,329

10,220+92%

Profit520

1,448+178%

EmergingBusinesses

Sales

711702-1%Profit-180-173-Sales

12,662

14,921+18%

Profit12,952

4,040-69%

Overseas

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 Steady demand in DX for
MRs in marketing supportservices
 Steady growth in otherbusinesses Demand recovery in goodpace for clinical trials
including COVID-19
related orders

 Contribution from thecore business andvaccine support services
for corporates andmunicipalities, etc.

 15% profit growth
excluding China
performance and profit
from Medlive IPO
3

M3’s Triple Growth Engine + CSV
1. IndividualBusinessDevelopment(Sagrada Familia)
Regions

９1011１２３４５６７Regions
８９1011１ＳＳ ＥＳ
CAOTHERSOTHERS

 Continuous newbusiness entries

Businesses

Businesses

Businesses Pharma marketing /Clinical Scene DX

２３４５６７８９1011ＭＰ

８ＳＳ ＥＳ

７OTHERS

６ＭＰ５ＳＳ ＥＳ

４CA３ＭＰ

２CARegions１

3. Ecosystem
Synergy
Creation

2. Ecosystem
Expansion Cross-cell synergy
maximization

4. Social Impact Creation → CSV
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Growth Engine 1： Individual Business Development
Regions
９1011１４５６７Regions
８９1011OTHERSＳＳ ＥＳCA３１Businesses

Businesses

Businesses

OTHERS

２２３４５６７８９1011ＭＰ

８ＳＳ ＥＳ

７CA６ＭＰ５ＳＳ ＥＳ４CA３ＭＰ２OTHERSRegions
１4. Social Impact Creation → CSVCopyright © 2022 M3, Inc. All rights reserved.

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FY2022 Q1 Overview
MedicalPlatform No significant change from FY21Q4 in the settling trend ofthe DX surge in COVID factors (e.g. web conference) 18% YoY growth in orders backlog of Pharma Marketing
Support Services at the end of June FY2022

EvidenceSolution

 COVID related projects (vaccine and treatments) remain
steady with backlog at 33.1 billion yen
 Digitalization and decentralization (DCT) of trials continue toprogress

CareerSolution Business expanded with contribution partly from vaccineadministration support services
 Core business with doctors overall remain secure

Site
Solution COVID vaccine administration support services and clinical
trial businesses remain strong
 Topline growth in core businesses such as home nursing
care services and medical institution management support

Overseas +15% operating profit growth excluding China
 Steady growth in US career businesses, while double-digit topline growth rate continues in Europe, excluding M&A impact
Copyright © 2022 M3, Inc. All rights reserved.

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Pharmaceutical Sales & Marketing DX

Copyright © 2022 M3, Inc. All rights reserved.

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Pharma Marketing Cost and TAM for M3
PresentFuture

M3’s Role

Industry
productivity
improvementfrom DX

MR
RelatedCosts
1.5 tn yen

Internet50 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)(000’s)70

Historical PeakApprox.
50,000 in
FY202165,752 MRs-1,095 -522

-950 -752

60-2,533-2,742▲3537MRs
6.6%decrease*estimated value-3,572-3,537

50402008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

COVID accelerated the decline in MRs*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 Plan375~500
ExternalConsultants

 HR capacity
increase

230Approx.

 Recruiter
reinforcement30%(fee scale)100
M3
Employees(indexed)

Approx.

Cost per
Staff

70%

FY2019NOW

Few years
from now..

121(pre-COVID)

Temporaryincrease due
to outsourcing

Staff Fortification
Initiatives

Normalizedwith proper
hires

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 New grad
recruitment
fortification
 Appeal potential
M3 career pathsand merit(skill acquirement,compensation, etc.)10Hiring Progress of M3 Professionals
Number of Hires

8xQ1

Q2

FY21Q3Q4

Q1

FY22

Recruitment performance was 8 times higher than in the same period ofthe previous year. On the other hand, the quarterly trend slowed down
due to temporary issues (e.g. operational changes on the agent side,)but the issues have been resolved and a recovery is expected
Copyright © 2022 M3, Inc. All rights reserved.

11

DX of the Clinical Scene

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Potential in DX of Clinics
Current

Post DXAccessLong waiting timein lobbies

Online reservations

Diagnosis

OfflineOnline/Offline HybridPayment

Wait to pay atservice desk

Head straight home(digital payments)

RxLocal pharmacy

Delivered to homeor officeMedicalRecords

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.

13

M3 DigiKar EHR Growth
Number of Sites Using M3 DigiKar3,850

 Approx. 3,850
medical sites
have adopted
DigiKar; aimingfor 5,000 sites
within this FY
 Enhanced value
provision
through DigiKar
packaged with
DigiKar Smart

FY15

161718

1920

21

22

Incontestable #1 market share within cloud based
digital health records, with over 100 million charts
on record
Copyright © 2022 M3, Inc. All rights reserved.

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Evidence Solutions

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Evidence Solutions: Sales Trends(JPY MM)

4,833

5,299

6,057

6,567

7,174

Factors contributing tothe strong performance+48%

 Projects related
to COVID Effective use ofpatient panels
 DCT expansion

Q1

Q2

FY21

Q3

Q4

Q1

FY22

Sales performance steady, with recovery from negative
impact of COVID and the addition of domestic COVIDrelated projects
Copyright © 2022 M3, Inc. All rights reserved.

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Overseas

Copyright © 2022 M3, Inc. All rights reserved.

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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.

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Overseas Segment: Sales/OP Trends
Overseas Sales(vs Consolidated)*

Overseas Operating Profit(vs Consolidated)*(JPY MM)60,000(JPY MM)

30%

Sales
vs Consolidated

50,00025%

16,000Operating Profit
vs Consolidated

14,00020%

12,00040,00020%

30,00015%

20,00010%

10,000

15%

8,000
10%

6,000
4,000

10,0005%00%

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

25%

5%

2,0000FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

0%

Accelerated overseas profit growth as well as ratio to consolidated
results in line with growth of physician membership platform*Excluding Medlive results and IPO (FY21) impact

Copyright © 2022 M3, Inc. All rights reserved.

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

14,919+18%

12,650+26%

 Strong overall,
especially inCareers

5,439

+19%

2,970

over +60%*

 Solid top-line
growth, doubledigit growth rateeven excluding
M&A efforts

6,510NorthAmerica

5,154Europe

4,582APAC2,914
FY2021Q1

Medlive
contribution

 Steady progress

FY2022Q1

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

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20

Growth Engine 2： Ecosystem Expansion(Sagrada Familia)
Regions
８９10

11

１

５６

７

Regions
８９1011

１ＭＰ

４OTHERS

ＳＳ ＥＳ
CA

３

Businesses

Businesses

Businesses

OTHERS

２２３４５６７８９1011ＭＰ

７ＳＳ ＥＳ

６CA

５ＳＳ ＥＳ

４CA

３ＭＰ２OTHERSRegions
１

4. Social Impact Creation → CSV
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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) →37 (6.0x)

Business Units

：

10 →

24 (2.5x) →56 (5.5x) →68 (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…
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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~90CAGR（FY15~21）～20%

64 bil15 bil
FY2010~33~31FY2015CAGR~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 themarket
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Increase in M&A
Number of Deals That Were Evaluated
350
267

60
FY1575

FY16111FY17144

186
90

FY18

FY19

FY20

FY21

FY22

The number of M&A continues to increase steadily. Number ofexecutions and size are also increasing.
Copyright © 2022 M3, Inc. All rights reserved.

24Acquisition of iDoctus, in Spain
 Used by about 500,000
doctors in a total of 19Latin American countries,
including Spain andMexico
 Mobile application
providing drug databases
and medical information.
Very highly rated byusers
 Together with existing
members of the M3 Group,
the coverage of doctors
in Spain is more than 80%

Copyright © 2022 M3, Inc. All rights reserved.

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

After Onset/
PatientGeneral Public(consumer) Reducing health carecosts by 'reducing thenumber of people who
become ill in the firstplace' rather than just'curing illness after it
has occurred'

Future expanding
priority areasHCP(e.g. wholesaler) Expanding the focus
area to include "predisease andpreventive medicine

Traditional main
business domain

Actualize " Making use of the Internet to increase, as much aspossible, the number of people who can live longer andhealthier lives, and to reduce, as much as possible, the amountof unnecessary medical costs" from the upstream
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Happiness-i, a New SubsidiaryBusiness andEmployee

Healthcare facilities

Monitoring of examinee Health check-up support
business– Total coordination ofreferrals to partner medical
institutions, booking, andprocessing of results;
450,000 persons annually･･････

 “Happiness Partners,” anemployee health management
cloud service– Tool for implementing
health management– Centrally manage healthcheck-up results for all
employees

Optimal matching

Provide social value and carry through with our mission
from further upstream; synergies with M3’s existing
businesses and the development of new services (Phase
1: White Jack Project)
Copyright © 2022 M3, Inc. All rights reserved.

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Growth Engine 3： Ecosystem Synergy Creation
Regions
９1011１４５６７

Regions
８９1011OTHERSＳＳ ＥＳCA

３１

Businesses

Businesses

Businesses

OTHERS

２２３４５６７８９1011ＭＰ８ＳＳ ＥＳ

７CA６ＭＰ５ＳＳ ＥＳ４CA３ＭＰ

２OTHERSRegions
１4. Social Impact Creation → CSV
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M3’s Paradigm Shift
Movement 1: 2000-2009

Movement 2: 2010-2019

Internet Servicee 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: 2020-29

１２３４0136・・・

ｎNumber ofbusinesses

Synergy
Links

Copyright © 2022 M3, Inc. All rights reserved.

nC230

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) →37 (6.0x)

Business Units

：

10 →

24 (2.5x) →56 (5.5x) →68 (7.0x)

Sales (bn)

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

FY2021Business synergy potential: 68Ｃ2 ＝ 2,278 linkage
potential
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４. Social Impact Creation → CSV
８９1011１４５６７８９1011OTHERSＳＳ ＥＳCA

３Businesses

Businesses

Businesses

OTHERS

２４５６７８９1011ＭＰ

７３

ＳＳ ＥＳ

６２CA

５１

ＭＰ

４

ＳＳ ＥＳ

３CA２

ＭＰ

１Regions

Regions

OTHERSRegions

4. Social Impact Creation → CSV
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SDGs and CSV: M3's CSV positioning
ＣＳＶＳＤＧｓ
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 tocorporate
missionNot 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 toSDGs through its CSV activities
Copyright © 2022 M3, Inc. All rights reserved.

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COVID Vaccine and Treatment Related Initiatives
Vaccine Administration
Corporates

Japan

Overseas

Municipalities〇〇(169 Corporates)(233 Municipalities)✕✕

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

Vaccine services to support 10.53 million administrations,along with support for development of drugs and vaccines
domestically and abroad. Fulfilling orders for the 4th round“booster” shots, as well as administration for children
Copyright © 2022 M3, Inc. All rights reserved.

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Normal Case

Digikar Smart Clinic

Appointment/ Waiting forconsultation

 Calls to healthcare providers keep
coming in (taking up even more of thebusy staff's time) Patient concentration in waiting rooms(infection risk)

 Disclose appointment availability on
the web and patients book into
available slots Patients in waiting rooms are limited

Reception

 Exchanges of examination tickets,verbal interactions between reception
staff and patient (infection risk)

 Contactless with barcode Check-inQuestionnaire Paper-based interviews in healthcare
facilities (infection risk)

 Remote, web-based questionnaire

Payment

 Money exchanged over the counter(infection risk)

 Payments made with smartphones,
no need to deal with cash

Urgent free support for healthcare providers responding
to the 7th wave (1,000 medical institutions are provided
with Digikar Smart free of charge)
Copyright © 2022 M3, Inc. All rights reserved.

35

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.

36

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 ofinformation 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 medicalcosts and to support healthier lives using digital technologies… social
contribution through business creation* CSV = Creating Shared Value
Copyright © 2022 M3, Inc. All rights reserved.

37

Annual Results
Sales

Operating Profit & Net Profit(mn yen)

208,159(mn yen)

95,141

Operating Profit*
Medlive IPO ImpactNet 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

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