M3, Inc.
Presentation Material
April 2023

Copyright © 2023 M3, Inc. All rights reserved.

0

The following presentation contains forecasts, future plans, managementtargets and other forward-looking projections relating to M3, Inc. and/or
its group. These statements are drawn from assumptions 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 those mentioned 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 © 2023 M3, Inc. All rights reserved.

1

FY2022 Consolidated Results(mn yen)Sales

FY2021

FY2022

YoY

208,159

230,818+11%

Operating
Profit95,141

71,983-24%

Pre-tax
Profit96,18774,318-23%

Net Profit

66,10851,983-21%

Business growthrate at +11% YoY
excluding China IPO
related earnings in thesame period of theprevious year andstock valuation
gain/losses

Double-digit growth in sales and profit growth forbusinesses excluding special factors in the previous year
Copyright © 2023 M3, Inc. All rights reserved.

2

FY2022 Consolidated Results by Segment(mn yen)FY2021

FY2022

YoY

Domestic

MedicalPlatform

Sales

85,92893,098+8%

Profit39,553

41,147+4%

Evidence
Solution

Sales

22,75627,157+19%

Profit

5,654

7,662

+36%

CareerSolution

Sales

14,094

14,538+3%

Profit

4,646

4,644

-0%

Site
Solution

Sales

35,18435,295+0%Profit

3,399

3,745

+10%

Emerging
Businesses

Sales

3,360

3,284

-2%

Profit

-601

945

-

Sales

51,83162,095+20%

Profit

44,837

16,990-62%

Overseas

Copyright © 2023 M3, Inc. All rights reserved.

 Although some companies
have reduced their budgets,the essential shift to DX is
progressing
 Medical Field DX: Steady inboth EHR and DigiKar Smart Backlog of orders is JPY30.6
bil.
 COVID-related clinical trials(therapeutic drugs/vaccines)
peaked out Digital-enabling clinical trials,
DCT, etc. continue to makeprogress Growth in ordinary businessoffset contraction in COVID
related revenues
 Profit increase due to the
non-recurrence ofimpairment losses in thesame period of the previous
fiscal year +19% profit excluding China
IPO related last year Q4 is affected by budget
compression ofpharmaceutical companies
3

Consolidated Sales Trends and COVID Impact
Unit: mn yen

208,159
169,198
130,973

230,818~24,300~24,800~5,700COVID related(clinical trials,
vaccination support,
promotion oftherapeutic drugs andvaccines, etc.)

Regularbusinesses

FY2019FY2020

FY2021

FY2022Contribution of COVID-related business to overall was 11% in
FY22. Top-line growth this fiscal year is driven by ordinary
business, with COVID-related revenues at similar level as lastyear
Copyright © 2023 M3, Inc. All rights reserved.

4

Sales Forecast for FY2023
Unit: mn yen
1H JPY6 Bil.
2H JPY4 Bil.
COVID related(clinical trials,
vaccination support,
promotion oftherapeutic drugs andvaccines, etc.)

230,818

Growth Rate

250,000～10,000+8% Overall growth rate
+16% Regular business growth rate

～24,300

Regularbusinesses

FY2022

FY2023E

16%

12%

13%

FY2021

FY2022 FY2023E

Solid top-line growth in regular businesses despite
contraction in COVID-related earnings...Regularbusinesses are witnessing an uptick in their growth rate
Copyright © 2023 M3, Inc. All rights reserved.

5

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.

6

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.

7

Leverage 3 Major Resources to Solve Healthcare Issues

Over 90% of physicians registeredHealthcare
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.

8

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）
FY2022Aggressive M&A to ensue in reaching growthpotentials exceeding 10~20x current levels…
Copyright © 2023 M3, Inc. All rights reserved.

9

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

230.8 bilBusinesses added between FY2010 and FY2015
Business as of FY2010

Businesses
 FR VIDAL US Clinical
Trial

～60
approx.

15.4x

CAGR

～100

（FY15~22）～70（FY10~22）～17%

64 bil15 bil
FY2010～33～31

FY2015CAGR（FY10~15）～15%

FY2022

CAGR～14%

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

2/3 of FY2022 sales were created from new businesses added
after 2010, growth rates are also greater for new businesses
entering the market
Copyright © 2023 M3, Inc. All rights reserved.

10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.

11

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.

12

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

Domestic

7

5

12

8

11

11

5

5

6

6

FY2021

FY2022

Overseas562
FY2018FY20194
FY2020M&A completed with 52 companies in the past 5 years, willcontinue to actively pursue M&A opportunities. FY23: 2 projects
already conducted abroad, Scribendi and Med Planet
Copyright © 2023 M3, Inc. All rights reserved.

13

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.

14

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.

15

Pharmaceutical Sales & Marketing DX

Copyright © 2023 M3, Inc. All rights reserved.

16

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.

17

Professional Staff Fortification Plan
Unit: Index with FY2019 as 100

375~500

Reduce the no. of
external consultants
while increasing theoverall number

Approx.

35%

Approx.

100
Approx.

M3
Employees

65%

Approx.

 Recruiter
reinforcement25%(fee scale) New grad
recruitment
fortification

75%

FY2019FY2021

FY2022

Few years
from now…

1

2

1.6

1

(pre-COVID)

Cost perStaff

 HR capacity
increase

245

225

Q4

Temporaryincreasedue tooutsourcing

Q4

Normalizedwith proper
hires

Staff Fortification
Initiatives

 Improve costs
while increasing
headcount

Normalizedwith proper
hires

Copyright © 2023 M3, Inc. All rights reserved.

18

DX of the Clinical Scene

Copyright © 2023 M3, Inc. All rights reserved.

19

DX of Clinics: Creating a New Patient Experience
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

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

20

M3 DigiKar EHR Growth
Number of Sites Using M3 DigiKar
4,750
 Cumulative number of
installations isapproximately 4,750.
Steady progress 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 150 million charts
Copyright © 2023 M3, Inc. All rights reserved.

21

DX of Clinics： DigiKar Smart
Medical Institutions：Managing System
Appointment

AutoReception

Next
Appointment

M3 DigiKar Smart
One-Stop Functionality

Payment

Consultation

Patients：

Mobile App

Linking to
EHR

8,121 reviews with a rating of 4.6 from users, newpatient experience created and highly evaluatedTaken from the following URL, as of April 24, 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.

22

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

136,762
106,961

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

47,947

100

4,358

FY21
Q3

FY21
Q4

17,282
FY22
Q1

FY22
Q2

 Users are rapidly
penetrating
DigiKar Smart as
the clinic's
infrastructure

FY22
Q3

FY22
Q4

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

23

Ecosystem Synergy: Medical Data Business
Unit: Index with FY21 as 100

Sales of Medical Data Business*

300

3X
100

FY2021

FY2022

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.

24

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

5,200

Mar-21

11,7006,100Mar-22Mar-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.

25

Overseas

Copyright © 2023 M3, Inc. All rights reserved.

26

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 © 2023 M3, Inc. All rights reserved.

27

Overseas Segment: Sales by Region
Growth rate

Unit: JPY MM

62,070+20%

26,634+19%

22,665+18%

12,771+40%*

51,811
North
America

EuropeAPAC

22,347

19,26910,195

FY2021

Medlive
contribution

FY2022

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 © 2023 M3, Inc. All rights reserved.

28

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

Service forDoctors

BusinessIntelligence

Clinical Trials

Career for
Doctors(Platform for doctors in North
America, Europe, and Asia and
EHR)(M3 Global Research:
Expanding in North America,
Europe, and Asia)(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
110

140

160

Approx.

2.1X

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.

29

Acquisition of Scribendi in Canada Support the preparation ofmanuscripts, clinical research andtrial papers, etc.
 Utilize crowdsourcing withapproximately 500 scientific andmedical research professionals
 Caters to clients in over 120 countries,
mainly in academia including major
universities, pharmaceuticalcompanies, and hospitals, etc. with
10% share of global market

 Editing and proofreading platform Utilize approximately 400 active
freelancers
 Provides services to 28,000 clientsannually, mainly to global academic
community, students, etc.
 Proprietary AI platform enables fastest
lead times in the industry

Global Platform for Research Paper Editing
Building a global platform for thesis editing by leveraging
geographic and functional complementarities. In addition,acquired Med Planet with strengths in qualitative researchin the BI field; accelerating
overseas business
Copyright © 2023 M3, Inc. All rights reserved.

30

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.

31

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 (12x) → 230.8 (16.0x)(Type x Country)

FY2022

Copyright © 2023 M3, Inc. All rights reserved.

32

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.

33

“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.

34

Expand Coverage of Enterprise Services
Number of employees covered bycorporate services*
780,000

Approx.

60x

184,000 189,000
12,900
FY
19

20

21

FY22 results cover
approximately 800,000
employees, offering thefollowing services
 EBHS Life
 Cancer prevention, PSP Ask Doctors
 Medical Checkup
Appointment &Implementation
 Employee health data
management, etc.
In addition to Happiness
Partners, expanding EBHS
Life introduction

22

Steadily expanding business base to create ecosystemsynergies as well. Plans to expand both the number of people
covered and services* Subject to PSP, Happiness Partners, Cancer Prevention, EBHS Life, etc.

FY22 includes those who received medical checkups before the acquisition of Happiness-i and Rinkai Medical Service

Copyright © 2023 M3, Inc. All rights reserved.

35

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.

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 © 2023 M3, Inc. All rights reserved.

37

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.

38

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 digitaltechnologies… social contribution through business creation* CSV = Creating Shared Value
Copyright © 2023 M3, Inc. All rights reserved.

39

FY2023 Outlook

Copyright © 2023 M3, Inc. All rights reserved.

40

FY2023 Qualitative Outlook
Outlook
Driver 1:

Ecosystem Expansion
COVID-related
businesses

Driver 2:

IndividualBusiness
Development

MedicalPlatform
Evidence
Solution New acquisitions in FY2022 will contribute to the full year New businesses and M&A in FY2023 are not factored in (inactual fact, the number of M&A deals under considerationand the scale of M&A deals are also on an expansionary
trend.)＋ Overall new COVID-related sales to fall by less than
half

－－

 Continued growth in diverse businesses including
pharmaceutical marketing support and DX of theclinical scene
 Revenues flat due to balance between increased
demand for regular projects and reduced demand
for COVID-related projects＋±

CareerSolution Existing businesses are expected to continue to
grow

＋

Site
Solution Further acceleration of investment for growth incore businesses, but sales decline due to reduction
in new corona vaccination support, etc.

－

Overseas Steady growth expected in all regions＋

 Continuation of traditional expansion trend＋

Driver 3:

Ecosystem Synergy
Creation

Copyright © 2023 M3, Inc. All rights reserved.

41

Annual Results
Operating Profit

Sales(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
34,33730,80027,48625,05020,022

94,471
78,14364,66051,346

16,061
7,648 13,738
9,294
4,803
1,683 3,5973,990 6,031
2,677
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)

Solid growth expected in the current fiscal year
*FY2021 excludes gains related to China IPO
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