Summary of Consolidated Financial Results for the Third Quarter of
the Fiscal Year Ending March 2023 [Japanese GAAP]
January 31, 2023
Japan Medical Dynamic Marketing, INC.
Listing
TSE
7600
URL http://www.jmdm.co.jp/
Representative Director andRepresentative(Title)(Name) Masao Okawa
President
General Manager, Investor
Contact person in charge (Title)(Name) Shinji Munechika (TEL) 03-3341-6705
Relations Office
Scheduled date of submission of
Scheduled date of commencement
February 14, 2023
the quarterly reportof dividend payment
Preparation of supplementary materials for the quarterly financial results : None
Holding of quarterly financial results briefing: NoneCompany nameSecurities Code(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months of the Fiscal Year Ending March 2023
(from April 1 to December 31, 2022)(1) Consolidated Operating Results (year to date)(Percentages indicate changes from the first half of the previous year.)
Net income attributable
Operating profit
Ordinary profit
to owners of parent

Net sales
million yen%

Million yen

Q3 of FYE March 2023
15,624
11.8
Q3 of FYE March 2022
13,978
13.6(Note) Comprehensive income Q3 of FYE March 2023
Q3 of FYE March 2022
Net income per share%%

Million yen

-21.1
27.1

1,138
1,634

%

-30.3
60.6

Diluted net income per shareyen

Q3 of FYE March 2023
Q3 of FYE March 2022

Million yen

1,510
-24.1
1,543
1,991
26.9
1,954
1,972 million yen (-0.2%)
1,975 million yen (183.6%)

yen

43.20
61.95

-

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Capital adequacy ratio

Million yen

Q3 of FYE March 2023
28,577FYE March 2022
27,342(Reference) Shareholders’ equity Q3 of FYE March 2023%

23,05480.2
21,491
78.2
22,926 million yen FYE March 2022 ¥21,386 million

2. Dividends
Annual dividends
End of firstquarteryen

End of second
quarteryen

End of third
quarter

FYE March 2022
0.00
FYE March 2023
0.00
FYE March 2023 (Forecast)(Note) Revisions to the most recently announced dividend forecast

End of period

yen

Total

yen

-

yen

12.00

12.00

13.00

13.00

: None3. Consolidated Financial Forecasts for the Fiscal Year Ending March 2023
(from April 1, 2022 to March 31, 2023)
Net sales
Million yen

Operating profit%

Million yen%

Full year
21,80013.6
2,000 -24.9(Note) Revisions to the most recently announced financial forecast(Percentages indicate year-on-year changes.)
Net income
Net income per
Ordinary profit
attributable to owners
shareof parent
Million yen

2,050: None%-20.9

Million yen

1,450

%

-32.1

Yen

54.96

*Notes(1) Changes in significant subsidiaries during the quarter under review : None
(Changes in specified subsidiaries resulting in changes in scope of consolidation)
Newly included - companies(Company name)- , Excluded- companies(Company name)-(2) Application of Accounting Treatment Specific to the Preparation of: Yes
Quarterly Consolidated Financial Statements(3) Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standard : None
2) Changes in accounting policies other than 1): None3) Changes in accounting estimates: None4) Retrospective restatement: None(4) Number of shares issued (common stock)1) Number of shares issued at the end of
the period (including treasury shares)
2) Number of treasury shares at the end of
the period
3) Average number of shares during theperiod (year to date)**Q3 of FYE March 2023 26,475,880 shares FYE March 2022
Q3 of FYE March 2023

175,107 shares FYE March 2022

26,475,880 shares
92,179 shares

Q3 of FYE March 2023 26,367,107 shares Q3 of FYE March 2022 26,383,769 sharesThis summary of quarterly financial results is not subject to audit by certified public accountants or auditing firms.
Explanation of appropriate use of earnings forecasts and other special notes- These forward-looking statements such as financial forecasts contained in this report are based on information currently
available to the Company and certain assumptions deemed to be reasonable by the Company, and do not mean that theCompany promises to achieve them. Actual results and other future events may differ significantly due to various factors.
Please refer to “(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements” on page 2 of
the attached document for the assumptions underlying the forecasts, notes on using the forecasts, etc.

Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

○ Table of Contents of Attachment

1. Qualitative Information on Quarterly Financial Results .......................................................................................... 2(1)

Explanation on Operating Results................................................................................................................... 2(2)

Explanation on Financial Position .................................................................................................................. 2(3)

Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements ............................ 2

2. Quarterly Consolidated Financial Statements and Main Notes ................................................................................ 3(1)

Quarterly consolidated balance sheet .............................................................................................................. 3(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income ............................................................................................................................................................ 5(3)

Notes to Quarterly Consolidated Financial Statements ................................................................................... 7(Note on Going Concern Assumption)............................................................................................................ 7(Notes on Substantial Changes in the Amount of Shareholders’ Equity) ........................................................ 7(Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial
Statements) ..................................................................................................................................................... 7(Additional Information)................................................................................................................................. 7(Segment Information, Etc.) ........................................................................................................................... 7

3.

Other ............................................................................................................................................................... 8
Sales................................................................................................................................................................ 8-1-

Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

1. Qualitative Information on Quarterly Financial Results(1) Explanation on Operating Results

During the nine months of the fiscal year ending March 31, 2023 of the Group, net sales were ¥15,624 million (up ¥1,646 million,or 11.8% year on year), operating profit was ¥1,510 million (down ¥480 million, or 24.1% year on year), ordinary profit was¥1,543 million (down ¥411 million, or 21.1% year on year), and net income attributable to owners of parent was ¥1,138 million(down ¥495 million, or 30.3% year on year).
In Japan, case unit prices declined due to the impact of the lowering of reimbursement prices in April 2022 and number of acquired
cases grew compared with the same quarter a year ago. As a result, net sales were ¥8,980 million (up ¥242 million, or 2.8% year
on year).
In the United States, net sales to external customers (US dollars) increased 4.3% compared with the same quarter a year ago. Thiswas because the customer base expanded with the successive commencement of suspended product supplies to new customers as
the supply chain issue that arose in the first half showed an improving trend, and the number of cases acquired increased due tothe implementation of various sales expansion measures for existing customers compared with the same quarter a year ago. Aftertranslation into yen, net sales increased 26.8% to ¥6,644 million due to the impact of the yen’s depreciation.
In the artificial joints category, combined total net sales in Japan and the United States increased 16.8% (1.5% in Japan and 26.7%
in the United States) year on year to ¥10,059 million. This was because the number of acquired cases in Japan increased despite
considerable lowering of the reimbursement prices and sales in the United States moved toward recovery, growing substantially(after translation into yen) due to the impact of the yen’s sharp depreciation. (Reference: The exchange rate for U.S. sales was
111.40 yen to the U.S. dollar in the same quarter a year ago and was 135.41 yen to the U.S. dollar in the quarter under review.)
In the category of trauma, net sales in Japan increased 5.8% year on year to ¥3,096 million, mainly due to steady sales of
ASULOCK and Prima Hip Screw despite a decrease in the number of acquired cases in the third quarter under review comparedwith the same period of the previous fiscal year in which the cases increased from the lifting of behavior restrictions.
In the category of spinal fixation devices, sales of the Pisces Spinal System continued to be steady in Japan, resulting in a 2.8%
year on year increase in total net sales in Japan and the United States to ¥2,388 million, despite the sluggish growth of KMC
Kyphoplasty System due to the entry of competitors in the Balloon Kyphoplasty (BKP) market.
As for cost of sales, the cost of sales ratio was 34.1% (32.1% in the same quarter a year ago) mainly due to the impact of the yen’s
depreciation and lowering of reimbursement prices in Japan.
Selling, general, and administrative expenses totaled ¥8,784 million (up 17.0% year on year). This was due to an increase inpersonnel expenses as a result of strengthening of the systems in Japan, an increase in commission expenses (commissions androyalties) in the wake of higher sales in the United States, and an increase in expenses (after translation into yen) in the UnitedStates affected by the depreciation of the yen. In addition, the ratio of selling, general, and administrative expenses to net sales
grew to 56.2% (53.7% in the same quarter a year ago).
Despite an increase in net sales, operating profit was ¥1,510 million (down 24.1% year on year) due to an increase in selling,
general and administrative expenses in addition to a higher cost of sales ratio owing to the impact of the yen’s depreciation.
Ordinary profit was ¥1,543 million (down 21.1% year on year) as a result of recording non-operating income of ¥104 million,
including foreign exchange gains of ¥61 million, tax refund of ¥15 million, and insurance claim income of ¥13 million, andrecording non-operating expenses of ¥72 million, including share of loss of entities accounted for using equity method of ¥42
million.
As for extraordinary income and losses, ¥25 million in compensation income and ¥19 million in reversal of provision for loss on
business were recorded under extraordinary income of ¥44 million, and ¥47 million in loss on retirement of non-current assets
such as medical tools was recorded under extraordinary losses.
Net income attributable to owners of parent decreased 30.3% year on year to ¥1,138 million, due to the above results and theposting of ¥306 million in gain on forgiveness of debts as extraordinary income in the previous fiscal year.
Segment results are as follows.
1) JapanNet sales were ¥8,980 million (up 2.8% year on year) and operating profit was ¥824 million (down 33.5% year on year).
2) United States
Net sales were ¥9,401 million (up 18.2% year on year) and operating profit was ¥581 million (down 18.6% year on year).

(2) Explanation on Financial Position

Total assets at the end of the quarter under review increased ¥1,234 million from the end of the previous fiscal year to ¥28,577
million. The main increases were in merchandise and finished goods by ¥906 million and raw materials and supplies by ¥615
million. The main decreases were in cash and deposits by ¥363 million.
Total liabilities decreased by ¥329 million from the end of the previous fiscal year to ¥5,522 million. The main decrease was inlong-term borrowings by ¥352 million.
Net interest-bearing debts, which are calculated by deducting cash and deposits from interest-bearing debts (the total amount ofshort-term borrowings, long-term borrowings, and lease liabilities), amounted to minus ¥741 million at the end of the quarter
under review.
Total net assets increased ¥1,563 million from the end of the previous fiscal year to ¥23,054 million. The main increases were in
retained earnings by ¥821 million and in foreign currency translation adjustment by ¥773 million.

(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements

Please refer to the “Notice Concerning Difference between Consolidated Financial Forecasts and Financial Results for the Second
Quarter of the Fiscal Year Ending March 2023 and Revision of Consolidated Financial Forecasts for the Fiscal Year Ending March2023” announced on October 31, 2022.

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Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheet(In thousand yen)Previous fiscal year
(March 31, 2022)

The quarter under review(December 31, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

2,590,849
5,212,555

2,226,871
5,172,675

Merchandise and finished goods
Work in process

8,186,658
497,823

9,093,420
569,991

Raw materials and supplies
Other

1,410,927
149,2112,026,635
259,424

Allowance for doubtful accounts
Total current assets-1,386-1,29918,046,638

19,347,719

728,450
350,978

763,852
321,585

4,691,605
1,953,479

4,616,963
1,956,061

Non-current assets
Property, plant, and equipment
Buildings and structures (net)
Machinery, equipment, and vehicles (net)
Tools, furniture, and fixtures (net)
Land
Other
Total property, plant, and equipment
Intangible assets
Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets-3-

48,173

2,237

7,772,687

7,660,701

291,960

300,420-

66,350174,887
971,990

173,105
946,572

84,55882,344

1,231,435

1,268,372

9,296,083

9,229,493

27,342,722

28,577,213

Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

(In thousand yen)Previous fiscal year
(March 31, 2022)

The quarter under review(December 31, 2022)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

785,671557,046

1,077,858
570,452

Lease liabilities
Income taxes payable

33,163
266,440

13,959166,051

Accrued expenses
Accounts payable - other

512,569
189,283

585,166
179,708

Provision for bonuses
Provision for bonuses for directors (and other officers)

194,015
65,20057,20029,811

Provision for loss on business
Other

65,000231,291

36,630148,769

2,899,680

2,865,606

Long-term borrowings
Lease liabilities

1,247,662
10,875895,330
5,217

Retirement benefit liability
Provision for share awards for directors (and otherofficers)
Asset retirement obligations

1,023,546

1,058,589

88,322

97,889Total current liabilities
Non-current liabilities

29,201

29,426Long-term deposits received
Deferred tax liabilities

8,000
544,310

8,000
562,307

Total non-current liabilities

2,951,919

2,656,760

5,851,600

5,522,366

Shareholders' equity
Share capital

3,001,929

3,001,929

Capital surplus
Retained earnings

2,587,029
14,550,073

2,587,029
15,371,494

Treasury shares-111,940-202,730

20,027,090

20,757,721

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Deferred gains or losses on hedges-

25,414Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,351,922
7,429

2,125,716
17,888

Total accumulated other comprehensive income

1,359,352

2,169,020

104,678

128,104

21,491,121

23,054,846

27,342,722

28,577,213

Non-controlling interests
Total net assets
Total liabilities and net assets-4-Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly consolidated statement of income
Nine-month period(In thousand yen)
The same nine months
The nine months under review
a year ago(From April 1 to(From April 1 to
December 31, 2022)
December 31, 2021)
13,978,136
15,624,728
4,480,119
5,329,281
9,498,017
10,295,447

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Freight and packing costs
Promotion expenses
Advertising expenses
Salaries and allowances
Retirement benefit expenses
Legal welfare expenses
Welfare expenses
Provision of allowance for doubtful accounts
Travel and transportation expenses
Depreciation
Taxes and dues
Research and development expenses
Commission expenses
Other
Total selling, general, and administrative expenses
Operating profit
Non-operating income
Interest income
Foreign exchange gains
Commission income
Insurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Commission for syndicated loans
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Reversal of provision for loss on business
Compensation income
Gain on forgiveness of debts
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Net income before income taxes and others
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent-5-267,635
76,48049,9342,459,405
76,658
223,814148,642138
105,313910,804
121,700
352,713
1,743,286
969,736
7,506,265
1,991,751

310,492
102,338
59,1352,748,456
74,973
238,829
194,683-87
179,100
1,023,894
108,599458,538
2,234,312
1,051,400
8,784,668
1,510,779

97
8,862
7,367
16,32678
61,205
2,844
13,22027,117
104,466

20,828
10,883
10,2595,278
6,058
53,308
1,954,769

14,26342,5106,279
9,135
72,187
1,543,057

306,751
306,751

19,11825,00044,11862,93862,9382,198,582
549,808
4,390
554,198
1,644,383
9,957
1,634,426

47,14647,146
1,540,028
409,537-18,740
390,797
1,149,231
10,283
1,138,947

Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

Quarterly Consolidated Statement of Comprehensive Income
Nine-month period(In thousand yen)
The same nine months
The nine months under review
a year ago(From April 1 to(From April 1 to
December 31, 2022)
December 31, 2021)
1,644,383
1,149,231

Net income
Total accumulated other comprehensive income
Deferred gains or losses on hedges
Foreign currency translation adjustment-2,788321,777

25,414786,935

Remeasurements of defined benefit plans, net of tax

11,971

10,459Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-6-

330,961

822,809

1,975,345

1,972,041

1,959,563

1,948,615

15,781

23,425

Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

(3) Notes to Quarterly Consolidated Financial Statements(Note on Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements)
Tax expenses were calculated by reasonably estimating an effective tax rate after application of tax effect accounting to net
income before income taxes and others for the fiscal year including the quarter under review and multiplying net income before
income taxes and others by the estimated effective tax rate.
(Additional Information)(Impact of COVID-19)
The accounting estimates for the nine-month period under review are reasonably calculated based on the information available
at the time of preparing the consolidated quarterly financial statements. However, there are uncertainties regarding the future
spread of COVID-19 and the timing of its resolution. If the infection status of COVID-19 as well as economic and otherenvironments deviate from the current assumptions, the Group’s business performance and financial position may be affected.
For reference, there are no significant changes from the assumptions made as of the end of the previous fiscal year.
(Segment Information, Etc.)
I

Nine Months of the Fiscal Year Ended March 2022 (from April 1 to December 31, 2021)
1. Information on the amounts of sales and profits for each reportable segment and information on the breakdown of revenue(In thousand yen)
Reportable segment
Japan
Net sales
Revenue from contracts withcustomers
Net sales to external customers
Inter-segment net sales or transfers
Total
Segment profit

United States

Total

8,738,342

5,239,793

13,978,136

8,738,342

5,239,793-

2,714,404

8,738,342
1,240,178

Amount recorded on
Adjustment quarterly consolidated
statement of income(Note 1)
(Note 2)-

13,978,136

13,978,136-

13,978,136

2,714,404-2,714,404-

7,954,198

16,692,541-2,714,404

13,978,136

714,688

1,954,867

36,883

1,991,751

Notes: 1. Adjustments for segment profit include ¥36,883,000 in elimination of inter-segment transactions.
2. Segment profit was adjusted with operating profit in the quarterly consolidated statement of income.
2. Information on impairment losses on non-current assets and goodwill by reportable segment
Not applicable.

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Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2023

II Nine Months of the Fiscal Year Ending March 2023 (from April 1 to December 31, 2022)
1. Information on the amounts of sales and profits for each reportable segment and information on the breakdown of revenue
Reportable segment
Japan
Net sales
Revenue from contracts withcustomers
Net sales to external customers

Segment profit

Total

8,980,664

6,644,064

15,624,728-

15,624,728

8,980,664

6,644,064

15,624,728-

15,624,728-

2,757,211

2,757,211-2,757,211-

8,980,664

9,401,275

18,381,940-2,757,211

15,624,728

824,611

581,461

1,406,073

104,705

1,510,779

Inter-segment net sales or transfers
Total

United States(In thousand yen)Amount recorded on
Adjustment quarterly consolidated
statement of income(Note 1)
(Note 2)

Notes: 1. Adjustments for segment profit include ¥104,705,000 in elimination of inter-segment transactions.
2. Segment profit was adjusted with operating profit in the quarterly consolidated statement of income.
2. Information on impairment losses on non-current assets and goodwill by reportable segment
Not applicable.

3. Other
Sales

Sales for the nine-month period under review by segment are as follows.
Name and item of each segment

Nine-month period under review
Compared with the ninemonths a year ago(From April 1 to December 31, 2022)
Amount (in thousand yen)

Medical devices(%)

9,160,877

102.4

Joint

3,446,414

101.5

Trauma3,096,144

105.8

Spine

2,357,900

102.4

Other

260,418

80.6

United States

6,644,064

126.8

Joint

6,613,416

126.7

Spine

30,647

157.2

Subtotal (A)15,804,941

111.4

Sales deduction (B)-180,213-

Total (A) + (B)15,624,728

111.8

Japan

(Note) Inter-segment transactions are offset and eliminated. As the amount of “Japan, Artificial bones,” which had been separately
disclosed in the same quarter a year ago, became less important, it was included in “Japan, Other,” starting from the threemonth period of the current fiscal year.

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