M3, Inc.
Presentation Material

January 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

FY2020 Q3 Consolidated Results
Summary

Copyright © 2021 M3, Inc. All rights reserved.

2

FY2020 Q3 Consolidated Results(mn yen)

Sales

IFRS

FY2019
Q1-Q3

FY2020
Q1-Q3

YoY

96,319123,750+28%+72%

Operating
Profit26,93342,468+58%

Pre-tax
Profit27,003

42,481+57%

Net Profit

18,616

29,507+59%

growthexcluding
impactssuch asstock
sales andvaluationchanges

Profit increase accelerated to +87% in the three months of Q3
versus previous year, excluding impacts such as asset sales andvaluation changes Copyright © 2021 M3, Inc. All rights reserved.

3

FY2020 Q3 Consolidated Results by Segment(mn yen)

FY2019
Q1-Q3

FY2020
Q1-Q3

YOY

Domestic

MedicalPlatform

Sales

36,98655,629+50%

Profit14,114

27,469+95%

Evidence
Solution

Sales

15,942

14,427-10%

Profit3,335

2,648-21%

CareerSolution

Sales

12,018

10,965-9%

Profit3,626

3,353-8%

Site
Solution

Sales

8,67812,530+44%

Profit460

1,510+228%

Emerging
Businesses

Sales

2,440

2,395-2%

Profit794

718-10%Sales

22,16029,814+35%

Profit4,660

8,378+80%

Overseas

Copyright © 2021 M3, Inc. All rights reserved.

+108% YoY
profit growth
excluding impact
such as stocksales

Temporary
demand decrease
due to COVID-19

Continued
strength from Q2

Recovery mode

Asia and US
strong4

FY2020 Q3 Consolidated Operating Profit Contribution
Breakdown(mn yen)

Demandexpansion frompharmacompanies

COVID related
demand expanded in
APAC and US/EU

Stock valuation
changesStrong

3,717
13,356

Temporary
demand decrease
due to COVID-19

1,050-76-273-686-1,553

15,536

Investment in LINE
Healthcare increased offset
recovery from negative
COVID-19 impacts

42,46826,933Adjustment

FY19
Copyright © 2021 M3, Inc. All rights reserved.

FY205

FY2020 Q3 Overview
COVID-19 Impact

MedicalPlatform

Accelerated digital transformation in pharma marketing
Continued recovery also of other businesses outside ofmarketing support services++

EvidenceSolution

Orders backlog remained steady at 22.5 bn yen despite
partial halts in projects due to COVID-19_Career
Solution

Dampened demand from both physician and pharmacists
due to COVID-19_Site
Solution

Increase in affiliate sites; increase in COVID-19 related
projects supporting continued strong results++

EmergingBusinesses

New business seeds being planted at a healthy pace
Increase in LINE Healthcare investments offset recovery
from negative COVID-19 impacts

NeutralOverseas

Rapid APAC expansion (cumulative Q3 APAC sales morethan doubled yoy) with acceleration especially in India
US clinical trial business recovery, and overall business
improvement++

Copyright © 2021 M3, Inc. All rights reserved.

6

COVID-19 Impact on M3

Copyright © 2021 M3, Inc. All rights reserved.

7

COVID-19 Impact on M3

Structural changes inpharmaceutical marketing
Structural changes in clinicalscene… telemedicine, AI
diagnostics
Clinical Trials

Y’s Rehabilitation Center
Hospital Management Support
Home Care Nursing
CareerCopyright © 2021 M3, Inc. All rights reserved.

8

m3.com Site Access Increase
COVID-19 RelatedInformation Provision

m3.com Access Increase (% yoy)

Focused deliveryof related news

+46%

Proactiveinformationexchange across
PtoP communities
Expert webinars
regarding COVID19 examination

FY2019
Q1-Q3

FY2020Q1-Q3

m3.com site access remains high after rapid rise since COVID-19;
becoming an imperative infrastructure for the medical industry
Copyright © 2021 M3, Inc. All rights reserved.

9Pharma Marketing Business Growth Pace

Marketing Support

Pre COVID-19

During COVID-19

Post COVID-19

100km/hr

250km/hr

120km/hr

Copyright © 2021 M3, Inc. All rights reserved.

10Reality of MR activities
Changes Experienced by MRs During 2020
Answered by MRs belonging to pharmaceutical companies
Conducted in November, 2020, n=100Telework (includingvideo conferences)

Channel Breakdown of Communication
Between Pharma to Physicians
Results from top 10 pharma companies with the highest
physician coverage
Surveys conducted during May ~ Aug period of 2019and 2020

99%

Visitation
restrictions
Remote meetings
with physicians

92%

22%

89%

Internet
Only

57%

Work Style Reform
Omni-channeledinformation provisionMarketing Support

29%

70%

49%

13%

Internet+ MRs

27%

MRs Only

Product supply
suspension

27%

Restructuring of sales
branches
Implementation ofvoluntary retirement
scheme

25%

17%

20%
2019

2020

100% = total number of contacts between MR and physician

Rapid DX penetration into pharmaceutical industry
Source: MIX

Copyright © 2021 M3, Inc. All rights reserved.

11Pharma Marketing Cost and TAM for M3 Marketing Support
PresentFuture

Industry productivity
improvement from DX

MR Related Costs
1.5 trillion yen

MR Related Costs
700~800 billion yen

98%
70~80%

Internet
30 billion yen
M3 share: 80~90%2%

20~ 30%Internet
200~300 billion yen
M3 share: 80~90%

MR related costs are expected to shrink, while allocation
towards digital channels expand
Ref: M3 survey and estimate; numbers are approximate
Copyright © 2021 M3, Inc. All rights reserved.

12Marketing Support Service Orders

Over2.5x

FY2019
Q1-Q3

FY2020
Q1-Q3

Marketing Support

Rapid demand
increase frompharmaceuticalcompanies due to
COVID-19
Sales teamfortification & larger
projects (+115% yoy
sales and delivery
staff including
external resourceutilization)

Orders remain high with further momentum in pharma DX
Copyright © 2021 M3, Inc. All rights reserved.

13

Launch of AI Platform Business
NOBORI Cloud･･･

Secure image
uploadMedical Site

AI diagnosed
image
download

ＰＡＣＳ

Analysis results viewable
via PACS of choice

M3Edge ServerAI

Business alliancewith NOBORI
providing medical
cloud services
Connectivity with any
PACS (medical imagemanagement system)
Multiple AI image
diagnostic algorithms
will be on-boarded
and categorized byphysical regions(head, lungs, heart,etc.)

Expanded free provision of COVID-19 pneumonia AI and remotediagnosis services scheduled for 121 medical sites across Japan
Copyright © 2021 M3, Inc. All rights reserved.

14

AI Platform Algorithms

AI

Pulmonary
nodule shadow

VUNO Med®-LungCTPulmonary
nodules

EIRL Chest nodule

COVID-19pneumonia

Ali-M3

Cerebralaneurysm

EIRL aneurysm

bybyby&by

New algorithms continue to onboard M3’s AI platform
Copyright © 2021 M3, Inc. All rights reserved.

15

Rapid Increase in AI Projects (1/2)

AI

M3 ServicesCompany

Ｍ３
LeadTherapy Area

Overseas

M3 Support

M3

Respiratory

M3

Diabetic Retinopathy

M3

Ostheoperosis

M3

Medical institution (overseas)

M3

COVID-19

M3

Lung Cancer

AI Venture

Thyroid Echo

AI Venture

Radiation Diagnosis

AI Venture

Coronary Artery

AI Venture

Coronary Artery

AI Venture

Chest X-Ray and CT, Fundoscopy

AI Venture

Mammography

AI VentureMammography

AI Venture

Fundoscopy

AI Venture

Chest X-Ray and CT

AI Venture

Chest X-RayAI Venture

Chest X-Ray and CT

AI Venture

Fundoscopy

AI Venture

Chest X-Ray and CT

AI Venture

Abdominal CT

Device Maker

Chest CT
Copyright © 2021 M3, Inc. All rights reserved.

16

Rapid Increase in AI Projects (2/2)

AI

M3 Services
Company

Domestic

M3 Support

AI Venture
AI Venture
AI Venture
Academia
AI Venture
Device Maker
Device Maker
AI Venture
AI Venture
AI Venture
AI Venture
Device Maker
Device Maker
Device Maker
AI Venture
AI Venture
AI Venture
Device Maker
Academia
Device Maker
AI Venture
Device Maker
Device Maker

Therapy Area
Influenza
Unruptured Cerebral Aneurysm
Insomnia
Respiratory
Gastrointestinal
Fundoscopy
Gastrointestinal Surgery
Alzheimers
Fluoroscopic moving image
Pathology
Cardiovascular
PACS Connectivity
Chest X-Ray &CT
Endoscopy
Endoscopy
Head MRI, Chest X-Ray & CT,
Mammography
Cardiovascular
Chest CT
Interstitial Pneumonia
Head CT
ReportEndoscopy
Head MRI, Gastro CT

45 cumulative AI projects to date. AI Platform launched.
Copyright © 2021 M3, Inc. All rights reserved.

17US Clinical Trial Business Update

Overseas

COVID-19 Related Trials
VaccineVaccineVaccineTreatment
VaccineTreatment

COVID-19 related trial
orders: several billion
yenCurrent high pace
expected to remainhigh for the fiscal year

VaccineVaccine…
Post COVID-19 pipeline also healthy due to site andspecialty area expansion
Copyright © 2021 M3, Inc. All rights reserved.

18LINEDoctor

Telemedicine

First wave telemedicine
service launch in Tokyo
metropolitan area
PDCA based improvements
to be made based on firstwave
LINE character “Brown” toadorn starter kits at clinics

Provision of familiar and reliable telemedicine services.
Full scale roll-out in Spring
Copyright © 2021 M3, Inc. All rights reserved.

19

Change in Growth Pace (start point: pre-COVID)
Business Trend Image

Aggregate Impact
Larger positive
impact than
expected
Current
outlook
Initialoutlook

Structural changes
progressing fasterthan expected

Short term neutral overall, structural changes expected to be largely
positive for the mid to long term. Currently trending better than expected.
Copyright © 2021 M3, Inc. All rights reserved.

20

M3 Growth Strategy

Copyright © 2021 M3, Inc. All rights reserved.

21

Business Scope Expansion and Growth Potential

2010Country：

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(Type x Country)：

10 → 18 (2x)Sales (bn)：

14 → 37 (2.5x) → 94.5 (7x) →→2022

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

22Business Growth in India
Operating multi-layered
businesses leveraging M3 India,
with the access to the 450,000
physician members, covering
almost half of doctors in India
Strong momentum in marketing
support, research andphysician e-learning businesses,
partly due to COVID-19
Higher profit margin compared
to US and Europe, given focus
on high margin internet services

India profit growth starting to outpace that of China,
becoming the top performer
Copyright © 2021 M3, Inc. All rights reserved.

23Collaboration with Non-Pharma Corporates
Company(empheal)(LHC)

Related Assets

Synergistic M3 ServicesVersatiletechnologies:
PS5, AI, VR, sensing

New service
development to inspire
the medical scene

Extensive
corporatenetwork(client base)

Corporate healthmanagement businessexpansion

80 million
monthly active
users

Unique online
consultation platform
development

M3’s ecosystem to expand externally
Copyright © 2021 M3, Inc. All rights reserved.

24

Joint Project with SONYCOMPASS Project
Joint project between
SONY and M3 announcedon Dec 14, 2020.
Donation towards COVID-19
initiatives
Healthcare businesscreation utilizing on SONY
technologies
Open innovation throughidea recruitment fromphysicians and joint
research initiatives withmedical professional
Copyright © 2021 M3, Inc. All rights reserved.

25

Annual Results
Sales

Operating Profit & Net Profit(mn yen)(mn yen)123,750
130,973

42,468Operating ProfitNet Profit

113,059

34,33730,80029,50727,48625,05024,153
21,34620,022
19,225

94,471
78,14364,66016,93851,346

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

9,294

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

7,648

46 62

8,878

10,428

6,031
5,598
4,803
4,492
3,597 3,990
3,4862,677
1,683
2,363
1,938
1,609 1,965
255 509 895
136 279 493 991-93 -93FY
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20(6m)Q3FY00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20(6m)Q3Forecasts were not given due to unpredictable variables, however,Q3 sales have already reached, and Q3 operating profits haveexceeded by 24%, full year results of the previous year.
* FY17 results retroactively restated according to IFRS9 (Financial Instruments)
Copyright © 2021 M3, Inc. All rights reserved.

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