“Mid-term Management Vision”
Explanatory Material
20th Anniversary

Motoyasu Ohno
President and CEO

March 2016

The information and data contained within this presentationand these presentation materials have been made basedon information available as of March 24, 2016, and any
forward-looking statements, including the forecastspresented herein, involve uncertainty may differ from thefuture performance.
Furthermore, information and data other than thoseconcerning the Company are quoted from public
information, and the Company has not verified and will not
warrant its accuracy or dependency.

Copyright © 2016 CareNet,Inc. All rights reserved.Mid-term Management Vision 2019
Enhancing the value of our company as the”No.1 provider of educational media in clinical medicine”
by continuously providing platforms to exchange
medical information and solutions
required from physicians and pharmaceutical companies.

Mid-term numerical goal： Existing business
Aim to achieve a 5% growth every year by adding improvements while
responding to the environmental changes

 Launch new services to the newly emerging markets
Fresh sales 1 billion yen (2019)

Copyright © 2016 CareNet,Inc. All rights reserved.

Business circumstances will largely change in the future!
An era is coming where specialty drugs will account for more than
80% of the newly launched drugs

Number of newly developed drugs（As of the end of Feb. 2016)

Phase-II

Phase-III

Under
regulatory
review

Subtotal

116

244

66

426

Specialty drugs

90

208

59368

Drugs for lifestyle-relateddiseases

26

36

7

Source:New drugs
subtotal(86%)

59(14%)

Aggregated data published by pharmaceutical companies

Copyright © 2016 CareNet,Inc. All rights reserved.

Traditional labor-intensive method of pharmaceuticalcompanies is ineffective in marketing specialty drugs

Drugs for lifestyle-relateddiseases Mainly diabetes drugs, hypotensors
 Patents of many main products areexpiring
 Many patients use these drugs andthe sales amount is large
 Prescribed mainly by practitioners,
namely general physicians
 There are many similar drugs, thus thecall share of “MR+e” is the key
to increase the sales

Specialty drugs
 Mainly drugs for cancers or rarediseases These drugs have less number ofusers, but have succeeded indifferentiating the effect (their drug
prices are also high) Prescribed by limited number of
specialists working at large hospitals
 Sales talk by MRs is not effective.
Sharing data collection and analyses
for individual treatment withphysicians will result in aprescription increase

Copyright © 2016 CareNet,Inc. All rights reserved.

Conceptual framework for CareNet business
Post-marketing

Lifestyle-related
drug typeSpecialty drug
type

Pre-marketing

LaunchCopyright © 2016 CareNet,Inc. All rights reserved.

Expirationof Patent

Conceptual framework for CareNet business
Post-marketing

Lifestyle-related
drug typeSpecialty drugtype

Pre-marketing

ExistingBusiness

LaunchCopyright © 2016 CareNet,Inc. All rights reserved.

Expirationof PatentFuture of the Existing BusinessE-promotion, which has been one of our main
businesses, will steadily keep growing in the future
Post-marketing

Pre-marketing

Lecture market(Approx. 8 billion yen)
Increasing shift
to the Web

Digital Advertisement Market
Approx. 10 billion yen

MRPlus, etc.
Web seminar market
Approx. 1 billion yen

Web lectures, etc.

LaunchCopyright © 2016 CareNet,Inc. All rights reserved.

Expirationof Patent

Strategy for Each Segment

Three segments were selected as the target of themedium-term strategy
Post-marketing

Pre-marketing

MRPlus＋Remote DTL center( 1 )Online MR Service

LaunchCopyright © 2016 CareNet,Inc. All rights reserved.

(1)
Expirationof PatentThree segments were selected as the target of themedium-term strategy
Post-marketing

Pre-marketing(2)
Un-Branded
MedicalEducation(MEDuLiTe)

MRPlus＋Remote DTL center( 1 )Online MR Service

LaunchCopyright © 2016 CareNet,Inc. All rights reserved.

(1)
Expirationof PatentThree segments were selected as the target of themedium-term strategy
Pre-marketing

Post-marketing

(2)

(3)

Un-Branded
MedicalEducation

Registration Support
Clinical Study Support
Real World Data(MEDuLiTe)

MRPlus＋Remote DTL center( 1 )Online MR Service

LaunchCopyright © 2016 CareNet,Inc. All rights reserved.

(1)
Expirationof PatentImprovement of the Existing Services
and Online MR ServiceImprovement of theexisting business

MRPlus ＋ Remote DTL CenterIn the future with limited meeting opportunities, responding in a timely manner to thephysicians’ needs which change according to the lifecycle of a product will be more
important.
This service will swiftly support physicians’ activities after generating prescription
intention through MRPlus by integrating the Remote Detail (DTL) Center.

 Clearly divide the existing service into MR-typeand Non-MR type to expand in the digital PR
market which is expected to grow further, andincrease the value of our company.

MRPlusRemoteDTLCenter Add the Remote DTL Center to the Non-MR type.
Improve the performance of each project by directly
contacting physicians from concierges or medical
personnel who are capable of covering inbound +outbound.

 Pilot Launch of the Remote DTL Center: 2016(planned)
Copyright © 2016 CareNet,Inc. All rights reserved.

Launch of Online MR Service (New) Providing a new multi-channel support service for continued prescription in
response to a review of MR resources.

 Respond to the needs for the complete digitalization due
to a decrease in MRs in the practitioners’ sector, a mainmarket of drugs for lifestyle-related diseases.

 CareNet will act as a digital MR for the ImportantPhysicians' Panel in some of the high-cost and timeconsuming activities such as providing information tomaintain prescriptions, to prevent brand switching, or tofind undiagnosed patients with special diseases.
 Add the Remote DTL Center when closing is required.
 Target products are drugs for lifestyle-related diseases,
and specialty drugs for internists
 Second half of 2016: Pilot launch

Copyright © 2016 CareNet,Inc. All rights reserved.

Un-Branded Medical Education
Provided Before Launching SpecialtyDrugs

MEDuLiTe,the First Website in Japan Special for
Medical Education

Launch of MEDuLiTe

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presented by Dr. Takeshi, the 1st session:
Approach to Disturbance of Consciousness* An imageof the website※イメージ画像
Copyright © 2016 CareNet,Inc. All rights reserved.

Launch of MEDuLiTe Planned to be opened in July 2016.

 A learning center specialized in clinical information with nonbrands.
 Focusing on the marketing in specialty fields.
 Meeting the needs of pharmaceutical companies; “To givetarget doctors a good impression of the field to be newly
marketed, to build a sense of expectancy, and to makepreparation”.

 The needs of pharmaceutical companies are very high as drug
information provision or contact from MRs is not legally allowed
before obtaining a new drug approval.
 All physicians require is highly academic information, not the
subjective information from manufacturers. Such contents
cannot be created without high competency and experience.

Clients can be a sponsor of educational contents
which are planned/ produced/ posted by CareNet.
Business Model Similar to TV Stations
Copyright © 2016 CareNet,Inc. All rights reserved.

Purposes and Policies of
New Services to be Launchedin Post-Marketing of Specialty Drugs

Clinical Data Collection is Important in the Field ofSpecialty Drugs
Issues in specialty drugs
Insufficient clinical data

Needs to aggregate clinical data
Creating contents to present thedata
Our company’s advantage
 Experience in recruiting participating physicians andtraining physicians online
 Experience in carrying out calculations and analyses,
utilizing clinical cases collected from members
 Know-how built through case registration support
Copyright © 2016 CareNet,Inc. All rights reserved.

Strength of Real World and CareNet

Activate collection of post-marketing data on specialty
drugs to support clinical studies
Accelerate the speed of case registration through the physicians’
panel consisting of 128,000 members and a database and contributeto improve the performance

MemberPhysicians’ PanelCase
Registration
SupportStudyDesignResearchPhase-IV
SupportRealWorld
Data

Copyright © 2016 CareNet,Inc. All rights reserved.

Evaluationof theResults,
Validation

Investment to Venture Seeds in theMedical / Health Care Fields

Incorporate business areas which are common in medical
and pharmaceutical fields and in which our competency fits

Member Physicians’ Needs

ICT
Hospital
Management

Practice
StrategyManagement

Restructurin
g ofPharmacies

Healthcare
SystemReformBIG Data

RemoteMedicine
Regional
Comprehensive Support

AcademicMeeting

Resource
Optimization

Specialist
Doctor
SystemShorterDevelopme
nt Period

GlobalStrategy

Synergy with CareNet

MedicalAffairs
Prior training
for new target
diseases

TargetContact

Finding
Clinical
Cases

Case
Registration

Pharmaceutical Companies’ Needs
Copyright © 2016 CareNet,Inc. All rights reserved.

Phase-IV

Educationof Patient
SupportInvestment to Related Healthcare Seeds
CareNet Innovation
Investment Business Limited
Partnerships

Investment

Investment andMarketing

TARO Ventures

Feb.
2016

Discovering/ Large
Investment

Investment to high value-added businesses in the future
healthcare environment
 Medical ICT Support for practitioners

 Telemedical service

 Support for retaining patients

 Hospital management support

 New businesses for meeting

pharmaceutical needs etc.
Copyright © 2016 CareNet,Inc. All rights reserved.

Strategy in the mid-term period + Service Matrix
Segment ofPhysiciansStrength(Capability）
Business
Description
ExistingServiceServices to belaunched

Specialists(Large Hospitals)

Practitioners

Membership
Loyalty

Contents

ICTPromotion
Support

Education

Research &DB Sales+++Online MR
Service

Un-Branded
MedicalEducation

Registration Support
Clinical Study Support
Real World Data

MRPlusQuick PR/Web lectures,etc.

Copyright © 2016 CareNet,Inc. All rights reserved.

Mid-term Sales Forecast 2019
Sales Amount（JPY Million）

4,000
3,500

1 billion
yen

3,000

New Services

2,500
2,000
1,500

Existing Services

1,000

Average Annual Growth Rate

+5%50002015
2015年

2016
2016年

2017年

Copyright © 2016 CareNet,Inc. All rights reserved.

2018年

2019
2019年

Thank you for your continued support.

20th Anniversary