M3, Inc.

Presentation Material

Ap r i l 2 0 2 2

Copyright © 2022 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 © 2022 M3, Inc. All rights reserved.

1

Annual Results
Sales

Operating Profit & Net Profit
208,159(mn yen)(mn yen)169,198

95,141

Operating Profit
Net Profit

66,108130,973

57,972

113,059
94,471

41,19834,33730,80027,48625,05024,153
21,34620,022
19,22578,14364,66051,346

107 480 891

16,93816,061
13,73813,493
10,428
7,648 9,294 8,878
6,031
5,598
4,492
3,990 4,803
255 509 895 1,683 2,677 3,597
1,965 2,363 1,938 3,486
4662 136 279 493 991 1,609

36,75926,007
19,0408,534 14,646
5,729
2,276
11,811
7,475
3,854
1,563

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)Continued growth irrespective of Medlive related profits
Copyright © 2022 M3, Inc. All rights reserved.

2FY2021 Consolidated Results(mn yen)Sales

FY2020

FY2021

YoY

169,198

208,159+23%

Operating
Profit57,972

95,141+64%

Pre-tax
Profit58,26496,187+65%

Net Profit

41,198

66,108+60%+20%

excludingstockvaluation
impactsuch astheMedlive
IPO

5.2 billion yen for Q4 in temporary impairments on items suchas overseas intangible assets and affiliate Visionary Holdings
Copyright © 2022 M3, Inc. All rights reserved.

3

FY2021 Consolidated Results by Segment(mn yen)Domestic

FY2020

FY2021

YoY

MedicalPlatform

Sales

77,07685,928+11%

Profit37,90339,553+4%

Evidence
SolutionSales

19,47322,756+17%

Profit3,618

5,654+56%

CareerSolution

Sales

13,537

14,094+4%

Profit3,753

4,646+24%

Site
Solution

Sales

16,55535,184+113%

 Contribution
partly fromvaccine support
services forcorporates andmunicipalities

Profit1,537

3,399+121%

Emerging
Businesses

Sales

 Q4 intangible
asset impairment

3,328

3,360+1%

Profit950-601-

Sales

42,147

51,831+23%

Profit12,59944,837+256%

Overseas

Copyright © 2022 M3, Inc. All rights reserved.

 Marketing support
sales +11%
 Continued upfront
investment in staff
reinforcement Acceleration inclinical trials

 Q4 affiliate
impairment(VisionaryHoldings)
 10% profit growthexcluding 30.9 bnyen profit fromMedlive IPO
4FY2021 Overview
MedicalPlatform DX rapid acceleration seen during COVID (such as in Webinars) isnormalizing DX continues to progress, with 25% YoY growth in orders backlog
at the onset of FY22EvidenceSolution

 COVID related projects (vaccine and treatments) remain steady withbacklog at 33.7 billion yen
 Digitalization and decentralization (DCT) of trials continue to progress

CareerSolution

 Business expanded with contribution partly from vaccine
administration support services
 Core businesses overall remain on recovery path with alleviationfrom negative COVID impact

SiteSolution

 COVID vaccine administration support services and clinical trial
businesses remain steady Growth seen in core businesses such as home nursing care services

Overseas All regions doing strongly with +23% profit growth excluding theChina contribution
Copyright © 2022 M3, Inc. All rights reserved.

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

９1011１２３４５６７Regions
８９1011１ＳＳ ＥＳCAOTHERSOTHERS

 Continuous newbusiness entries

Businesses

Businesses

Businesses Pharma marketing /Clinical Scene DX

２３４５６７８９1011ＭＰ

８ＳＳ ＥＳ

７OTHERS

６ＭＰ

５ＳＳ ＥＳ

４CA３ＭＰ２CARegions１

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 ＥＳCA

３１Businesses

Businesses

Businesses

OTHERS２２３４５６７８９1011ＭＰ８ＳＳ ＥＳ

７CA６ＭＰ

５ＳＳ ＥＳ

４CA３ＭＰ

２OTHERS

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

7

Pharmaceutical Sales & Marketing DX

Copyright © 2022 M3, Inc. All rights reserved.

8

Pharma Marketing Cost and TAM for M3
PresentFuture

M3’s Role

Industry
productivity
improvementfrom DX

MR
RelatedCosts
1.5 tn yen

Internet
50 bn yen97%
70~80%

3%

20~30%

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

200~300
bn yen(1) InternetMarketingSupport(3) Data-drivenMarketingSupport= 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.

9Service Scope Expansion
Firm-Wide DX Support

Per Product Support
Theme

Efficient promotion

Fundamental productivity
improvement of the marketingand sales processes

ClientProduct manager

Top management

Marketing per individual
drug

Optimization of marketing andsales of entire drug portfolio

ServiceStrategy

MR-kun, Web Conference,etc.

Complete solution provisionsuch as marketing strategy
planning and resource
allocation data

Contract
FormatContracts per productComprehensive strategic
alliances

ServiceCoverage

Drastic structural reinforcement implemented to support pharmaceuticalDX support… a new paradigm shift in collaboration with pharma companies
Copyright © 2022 M3, Inc. All rights reserved.

10

Professional Staff Fortification Plan
375~500
External
Consultants

 HR capacity
increase

230

 Recruiter
reinforcement35%(fee scale)100
M3
Employees(indexed)

65%
FY2019NOW

Few years
from now..

121(pre-COVID)
Cost perStaff

Temporaryincrease dueto outsourcing

Staff Fortification
Initiatives

Normalizedwith properhires New grad
recruitment
fortification
 Appeal potential
M3 career paths
and merit(skill acquirement,compensation, etc.)

Costs to remain flat as outsourced consultants are reduced.
Copyright © 2022 M3, Inc. All rights reserved.

11

Hiring Progress of M3 Professionals
Number of Hiresapprox.

6.0x

Q4
FY20

Q1

Q2

Q3

Q4

FY21

Significant growth in hires as a result of internal and external fortification
initiatives. Expecting further increase in and contribution from new hires
next fiscal year.
Copyright © 2022 M3, Inc. All rights reserved.

12

Digital Marketing Business Review and Outlook
 Stabilization of FY20 year-end influx seen during COVID
saw FY21Q4 sales flat YoY
 Steady progress in structural DX confirm continued marketexpansion
 As a key growth driver, staff reinforcement initiatives
progressed favorably Full-scale contribution to business performance from staff
fortification expected to accelerate growth in FY22 (FY22orders backlog +25% YoY so far)
 Margins expected to recover going forward as outsourced
consultants are reduced in line with proper staff fortificationCopyright © 2022 M3, Inc. All rights reserved.

13

DX of the Clinical Scene

Copyright © 2022 M3, Inc. All rights reserved.

14

Potential in DX of Clinics
Current

Post DXAccessLong 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 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.

15

Further DX through M3 Solutions
Renamed as “M3 Solutions”(from “C.M.S”) as of April
2022 with newly appointed
CEO, Rie Nakamura
Expansion of DigiKar Smartlaunched in Oct. 2021,
along with M3 DigiKar
Fortification of sales
structure to deliver
extensive DX services tothe clinical scene

Evolving from an EHR provider, to a company providing
DX support for the clinical scene
Copyright © 2022 M3, Inc. All rights reserved.

16

M3 DigiKar EHR Growth
Number of Sites Using M3 DigiKar

3,600

 Over 3,600 medicalsites have adopted
DigiKar No.1 in annual
adoptions acrossboth cloud and onpremise electronic
health record
systems

FY15161718192021

Incontestable #1 market share within cloud based digital
health records, with over 90 million charts on record
Copyright © 2022 M3, Inc. All rights reserved.

17

Acquisition of Clinic EHR Business
EHR Business Platform Fortification

Product Lineup

DX Acceleration

ClientCoverageOver 10,000 medical sites utilizing M3 and Canon’s EHR andmedical accounting services, further accelerating DX of clinics.
Copyright © 2022 M3, Inc. All rights reserved.

18

DX of Medical Field: M3 DigiKar Smart
Medical Institutions:Managing System

Patients:
Mobile App

Appointment

AutoReception

NextAppointment

M3 DigiKar Smart

One-Stop Functionality

 Less reception work Less system costs
 Infectious disease
control Facilitation of return
visits and continuity ofCare

Consultation

Payment

Linking toEMR

 No bulky patient cards
 Cashless payments
 Less wait time Treatment
continuation withappointment
reminders

Full-scale launch via M3 Solutions, aiming for furthersales expansion
Copyright © 2022 M3, Inc. All rights reserved.

19

Growth Engine 2： Ecosystem Expansion(Sagrada Familia)
Regions
８９1011１５６７Regions
８９1011１ＭＰ４OTHERSＳＳ ＥＳCA３Businesses

Businesses

Businesses

OTHERS

２２３４５６７８９1011ＭＰ

７ＳＳ ＥＳ

６CA

５ＳＳ ＥＳ

４CA

３ＭＰ

２OTHERS

Regions
１4. Social Impact Creation → CSV
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20

Establishment of JV with SONY: SapplyM

 310k doctor members(90+%coverage)
 Network, expertise, and businessdevelopment strength within thehealthcare industry

 Various technologies
・・・PS5, AI, VR, sensing
 Entertainment expertise

49%

51%

 Provide “solutions to increase the number ofpeople who can live healthy and joyful lives
through the creative use of advanced technology”
 Solutions business expansion through integrationof medical expertise and technology
 First service launch: An at-home rehabilitation
support system, “Reha-Katsu”

Creating new experiences and enhancing the well-being ofpatients through merging of assets across both firms.
Copyright © 2022 M3, Inc. All rights reserved.

21

Home Rehabilitation Support Service “Reha-Katsu”
 Integrate M3’s strokerehabilitation center
expertise with Sony’s
posture estimation andmotion analysis
technologies
 With on-line support from
specialists, patients canenjoy rehabilitation at homes
with no need to frequent afacility
 Targeted for stroke patientsrequiring nursing care andrehabilitation (1.23 million
estimated patients)

Copyright © 2022 M3, Inc. All rights reserved.

22Market Launch of Burn Treatment Device "RECELL”
RECELL Device

 Feb 2022: gained Japanese regulatory approval
 FY22 H2: expected insurance reimbursement
approval

Spraying RECELL

 Radically improved prognosis compared to
traditional skin grafting procedures for severe
acute burns– Required donor skin reduced to 1/80 of burnarea, vs. 1/2~1/4 with traditional methods– Minimized pain and scarring post-procedure– Significant reduction in time to treatment; theautologous cell suspension can be prepared inroughly 60 min. to be sprayed onto burn area

Expected to provide an effective option for physicians intimes of accidents, natural disasters or acts of terrorism.
Copyright © 2022 M3, Inc. All rights reserved.

23

Business Scope Expansion and Growth Potential2010

2015

2020

2021

Country：

3 →8 (2.5x) →11 (3.5x) →15 (5.0x)

Business Types：

6 →15 (2.5x) →35 (6.0x) →36 (6.0x)

Business Units：

10 →24 (2.5x) →56 (5.5x) →64 (6.5x)

Sales (bn)

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

Aggressive M&A to ensue in reaching growthpotentials exceeding 10~20x current levels…
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24

Growth Trend per Business Expansion Phases
Sales Trend (JPY)
Businesses added between FY2015 and FY2021
Businesses added between FY2010 and FY2014

208 bilBusiness as of FY2010~50

 VIDAL
 US Clinical
Trial

~90

 Domestic Clinical
Trial US Career UK Advertisement~70

 MRkun/Research Career US Researchapprox.

15x64 bil
15 bil
FY2010~33~31

FY2015Businesses

FY2021

2/3 of FY2021 sales were created from new businesses added
after 2010, with further growth expected
Copyright © 2022 M3, Inc. All rights reserved.

25

Increase in M&A
Number of Deals That Were Evaluated
350
26760
FY1575

FY16111FY17144

FY18186

FY19FY20FY21M&A activity and pipeline continue rapid acceleration in line withbusiness expansion. Number of executions and size are also increasing.
Copyright © 2022 M3, Inc. All rights reserved.

26

Growth Engine 3： Ecosystem Synergy Creation

Regions
９1011１４５６７Regions
８９1011OTHERSＳＳ ＥＳCA

３１Businesses

Businesses

Businesses

OTHERS

２２３４

５６７

８

９1011ＭＰ

８ＳＳ ＥＳ

７CA６ＭＰ

５ＳＳ ＥＳ

４CA３ＭＰ

２OTHERSRegions
１4. Social Impact Creation → CSV
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27

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 autogenicsynergygeneration

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

Copyright © 2022 M3, Inc. All rights reserved.

Movement 3: 2020-28

１２３４0

1

36・・・

ｎ

Number ofbusinesses

Synergy
Links

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nC229

Business Scope Expansion and Growth Potential
201020152020

2021Country：3 →8 (2.5x) →11 (3.5x) →15 (5.0x)

Business Types：

6 →15 (2.5x) →35 (6.0x) →36 (6.0x)

Business Units：

10 →24 (2.5x) →56 (5.5x) →64 (6.5x)

Sales (bn)

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

Synergy potential between businesses: 64C2 ＝ 2,016
Copyright © 2022 M3, Inc. All rights reserved.

30

Ecosystem Synergy Creation Flow

Reinforcementof Ecosystem

StructuralDifferentiation

Investment TargetExpansion

Self-reinforcing expansion cycle powered by superbly capablestaff. Talent fortification structure development to further bolster
cycle sustainability
Copyright © 2022 M3, Inc. All rights reserved.

31

４. Social Impact Creation → CSV
８９1011１４５６７８９1011

OTHERSＳＳ ＥＳCA

３

Businesses

Businesses

Businesses

OTHERS

２４５６７８９1011

ＭＰ

７３ＳＳ ＥＳ

６２CA

５１

ＭＰ

４ＳＳ ＥＳ

３CA２ＭＰ

１Regions

Regions

OTHERS

Regions

4. Social Impact Creation → CSV
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32

COVID Vaccine and Treatment Related Initiatives
Vaccine AdministrationJapanOverseas

Clinical TrialsCorporates

Municipalities

Medical Sites〇〇〇(168corporates)(201municipalities)(vaccines,treatments)✕✕〇(vaccines,treatments,boosters)

Vaccine services to support 9.96 million administrations, alongwith support for development of drugs vaccines domesticallyand abroad. High probability of service demand for 4th round,boosters, and administration for children.
Copyright © 2022 M3, Inc. All rights reserved.

33

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 over75 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.

34

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.

35

FY2022 Outlook

Copyright © 2022 M3, Inc. All rights reserved.

36

FY2022 Qualitative Outlook
Outlook

Driver 1:

IndividualBusiness
Development

MedicalPlatform Expected growth from continued structural DX and staff
fortification contributions to business performance Margins to improve with reduction of external consultants＋EvidenceSolution

 COVID and mRNA related studies to continue, withadvancement in digitalization of clinical trials＋Career
Solution Core business expected to grow despite uncertainty
surrounding vaccine related business±Site
Solution Core business to further accelerate upfront
investments for growth, profit may remain flat Lack of transparency surrounding vaccine related
businesses with profits expected to decrease－Overseas Steady growth expected in all regions

Driver 2:

Ecosystem Expansion
Driver 3:

Ecosystem Synergy
Creation＋(excluding
China impact) Healthy expansion expected (with EHR businessacquisition already executed)
 Number and size of M&A evaluations to increase＋

 Continued acceleration expected＋

Copyright © 2022 M3, Inc. All rights reserved.

37

Annual Results
Sales

Operating Profit & Net Profit
208,159(mn yen)

95,141(mn yen)Operating Profit
Net Profit

169,198

66,108130,973

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
6,031 7,648 5,5984,803
3,990
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)Forecasts were not given due to unpredictable variables. Will
continue with a medium and long-term perspective and work
towards the growth potential exceeding 10x the current level
Copyright © 2022 M3, Inc. All rights reserved.

38