Securities code：7600

JMDM

First Half
Financial Results Briefing for the Fiscal Year Ending
March 2024
November 10, 2023
Japan Medical Dynamic Marketing, INC.

Representative Director and President
Toshiyuki Hironaka
Copyright © Japan Medical Dynamic Marketing, INC. All Rights Reserved.

JMDM

Notes
The forward-looking statements in this document are based on information
currently available to us and certain assumptions that we consider reasonable, andare not intended as a promise by us that they will be realized. Actual results may
differ materially due to various factors.
Our products
Artificial HipJoint

ArtificialKnee Joint

TraumaSpine

-Agenda1 . Results for the First Half of FYE March 2023

P. 4

- Consolidated net sales

P. 5- Consolidated Statement of Income

P. 6- Comparative YoY Analysis of Operating income

P. 7- Consolidated Net Sales by Location/Product

P. 8Japanese market- Sales in Japan - Quarterly Comparison

P.10- Sales in Japan 【Artificial joints】

P.11- Sales in Japan 【Trauma】

P.12- Sales in Japan 【Spine】

P.13

U.S. markets- Sales in U.S.

P.15

- Sales in U.S. - Quarterly Comparison

P.16- Sales in U.S. 【Artificial joints, by product】

P.17

2 ．
3 ．

Revised Forecast for FYE March 2024
Compared with Full-year Financial Forecast
Previous Forecast vs Forecast this time
Comparative Analysis of Operating income
Previous forecast vs Forecast this time
Revised Full-year Forecast Consolidated
Statement of Income
Revised Full-year Forecast
Consolidated Net Sales by Location/ProductStrategy for the Second Half

P.19
P.20
P.21
P.22
P.23

Topic-

Entered Regenerative medicine field - Knee joint

P.25

１．

Results for the First Halfof FYE March 2024

Consolidated net sales(Millions of yen)
12,00010.9Billion yen* After the application ofrevenue recognition standards

YoY +９.６%

10,0008,000

Highest first-half
net sales in company
history

6,000

YoY Change

Japan + 5.6%
U.S. + 15.3%

4,000
2,000

* After conversion into yen

0
16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3
H1
H1
H1
H1
H1
H1
H1
H1
H15

Consolidated Statement of Income
FYE Mar 2024 1H(Millions of yen, %)Results

YoY change

Ratio tosales

Amount ofchange

Rate ofchange

FYE Mar 2023 1H
Results

Ratio tosales

10,952100.0+962+9.6

9,989100.0Cogs
SG & A

3,928
6,405

35.9+558+16.6

3,370

33.7

58.5+713

+12.5

5,691

57.0

Operating income

617

5.6-309

-33.4

927

9.3

Ordinary income

632

5.8-283-31.0

916

9.2

Net income*359

3.3-361

-50.1

721

7.2

Net sales* Net income attributable to owners of parent

6Comparative YoY Analysis of Operating income
Operatingincome-310Million yen•••

Deterioration in operating income due to yen depreciation and decline inreimbursement Price (-180 million yen)
Increase in Gross income（＋520 Million yen） , Cogs deterioration（-130 Million yen）
Increase in SG&A（＋520 Million yen）
Operating income for 51st-52nd first Half: Analysis of changes (Unit: Millions of yen)
Note: Increase in SG&A expenses is shown as a negative figure in the graph.

Strengthen sales anddevelopment structure
increase in salaryFirst Half of
FYE March 2023

920

Exchange rate impact

Increase in development costs
New product development
StrengtheningCogs
ODEV Gross
Reimbursement income
JMDM Gross
incomeYoY+7.84Depreciationof the yen

Increase in Grossincome（＋520 Million yen）

First Half ofFYE March 2024

PersonnelCost-310 Million yen

Sales RelatedExpenses
Sales expansion in theU.S.Commission for distributors, etc.

R&D

Increase in SG&A（＋520 Million yen）

SG & A

610
7

Consolidated Net Sales by Location/ProductFYE Mar 2024 H1（Millions of yen , ％）Results

Japan

6,129

Joint
Tauma
Spine
Other

2,361
2,059
1,635
183

Ratio tosales

YoY change
Amont ofchange

FYE Mar 2023 H1

Ratio tochange

Results

Ratio tosales

5,805

58.1

2,226

22.3

1,922

19.2

1,596

16.0

176

1.8

56.0
21.6
18.8
14.9
1.7+324+135+137+38+6+5.6+6.1+7.1+2.4+3.9

57.0+318+5.4

5,921

59.3

-1.1-5--116-1.2

U.S *16,240-110
4,823

44.0+638+15.3

4,184

41.9

JointSpine

4,806
16

43.9
0.1+639-0+15.3
-3.0

4,167

41.7

170.2

10,952100.0+962+9.6

9,989

100.0

8,866

80.1

+747+9.5

8,118

80.3

34,132+2,781+8.9

31,351141.31+7.84

Subtotal
Sales deduction*3

Total
Sales of our Products

US＄*2*1 Conversion rate（yen）*2 Thousands of dollars *3 Sales deductions:Deductions associated with the application of the revenue recognition standard.

133.47

8Japanesemartket

Sales in Japan - Quarterly Comparison(Millions of yen , %)4,00020%FYE Mar 2023
FYE Mar 2024
YoY change

15%10%

7.1%

4.1%

5%0%

3,000

Change of COVIT-19 tocategory 5.
（May 2023）

Increase in the number of-10%
cases-15%-20%
Strong sales in Japan
Q4
Q2 ＞ Q1
-5%

2,000

Q1

Q2

FYE

Q1Q2

Q3Mar 2023

2,933

2,871

3,175

3,376

Mar 2024

3,055

3,073

--YoY change＋4.1%＋7.1%-10Sales in Japan 【Artificial joint】(Millions of yen)
2,500

ODEV Produts

2,361Million yen Strength from THA*1
TKA*2 Strong

YoY+6.1%
Other produts

 Increase in thenumber of cases

2,000

1,500


1,000

Change of COVIT-19 to category 5.

Double-digit growth Hip - Entrada
 Knee - BKS TriMax

 New products to be rolled
out nationwide

500

 SecuAlign HTO Plate Promontory Stem0
15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3
H1
H1
H1
H1
H1
H1
H1
H1
H1
H1
*1 Total Hip Arthroplasty *2 Total Knee Arthroplasty

11Sales in Japan 【Trauma】(Millions of yen)
2,500

2,000

ODEV Products

Femoral Neck
2,059Million yen Hip fracture fixation system
YoY+7.1%
Prima Hip Screw
Other product&ASULOCK

1,500

Double-digit growth

1,000500015/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3
H1
H1
H1
H1
H1
H1
H1
H1
H1
H112

Sales in Japan 【Spine】(Millions of yen)
1,500

ODEV Prodcuts

1,635Million yen
YoY+2.4%
Other product

Lynx high-growth
BKP regrowth

1,000500（KMC Kyphoplasty System）（ Lｙnx Plate ）015/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3
H1
H1
H1
H1
H1
H1
H1
H1
H1
H1

13

U.S.
markets

Sales in U.S.
(Millions of dollars)
35

YoY +8.9%$34.1M
Highest sales in thefirst half of the year

30
25
20

Customers acquired in
the previous year
Contributed to sales
expansion

15
105015/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3
H1
H1
H1
H1
H1
H1
H1
H1
H1
H1

15

Sales in U.S. - Quarterly Comparison

Strong sales in U.S.

（Million of dollars , %）3020

FYE Mar 2023
FYE Mar 2024
YoY change

20%

13.3%

Q2 ＞ Q1

15%10%

4.8%

5%

Q1：YoY ＋4.8％
Q2：YoY＋13.3％0%-5%

10-10%-15%-20%

0Q1

Q2FYE

Q1

Q2

Q3

Q4Mar 2023

16.2

15.1

17.7

17.2

Mar 2024

16.9

17.1

-

-

YoY change＋4.8%＋13.3%--UHKAS held

ODEV‘s seminar held every other year
(in April 2023)

16

Sales in U.S. – Artificial joints, by product

KneeHip（Million of dollars）
201510$22.6M
Knee
YoY ＋16.6%（Q1+12.8%、Q2+20.6%）
Double-digit growthin existing products.
 BKS TriMax
 BKS Revision Knee
New product alpha launched BKS Uni
Nationwide expansion in thesecond half of the year

Hip

5020/3 21/3 22/3 23/3 24/3
H1
H1
H1
H1
H1

*Excluding sales of "KASM" to DePuy Synthes

20/3 21/3 22/3 23/3 24/3
H1
H1
H1
H1
H1

$11.3MYoY ▲3.6%（Q1▲8.5%、Q2+1.6%）
Double-digit growthin existing products.
 Entrada Strong
Alpha launch of new products planned
17for the second half of the year

２．

Forecast for the Fiscal YearEnding March 2024

Compared with Full-year Financial Forecast - Previous Forecast vs Forecast this time
Operating income revised to 1.8 billion yen due to lower sales forecast in both
Japan and U.S.A and accelerated yen depreciation.

FYE March 2024
（Millions of yen , ％）Revisedforecast

Ratio tosales

Change from initial forecast

FYE March 2024

Amount ofchange

Initialforecast

Ratio tosales

Rate ofchange

Net sales

23,600

100.0

+300

+1.3

23,300

100.0

Cogs

8,450

35.8+650

+8.3

7,800

33.5

SG & A

13,35056.6+350+2.7

13,00055.8

Operating income

1,800

7.6

- 700

- 28.0

2,500

10.7

Ordinary income

1,850

7.8

- 550

- 22.92,40010.3

Net income *1,1504.9- 350- 23.31,5006.4* Net income attributable to owners of parent

19Comparative Analysis of Operating income - Previous forecast vs Forecast this time
Operating income-700Million yen

・ Foreign exchange impact of changing the assumed exchange rate for the second half of the year
from 135 yen to 150 yen per U.S. dollar (-240 Million)・ Decrease in gross income due to lower sales (-30 Million yen), cost deterioration (-30 Million yen)・ Controlling SG&A expenses (170 Million yen)FYE Mar 2024 Initial forecast vs Revised forecast
Operating income ：Comparative Analysis(Unit: Millions of yen)
Note: Increase in SG&A expenses is shown as a negative figure in the graph.

FYE Mar 2024
Initial forecast

1.Manufacturing cost deterioration- supply chain issues.
- Rising procurement costs (inflation)
2. Decrease in own products sales ratio

250
Exchange rate impact

YoY+10.32 Depreciationof the yen

Reimbursement（-1.4% , Revised forecast 80.4% ,Initial forecast 81.8%）

JMDM Grossincome

Curbing newemployment

ODEV Gross
incomeDecrease in Gross
income（-300Million yen）

Cogs

Strengthen
new productdevelopment

Increasein U.S.
sales

FYE Mar 2024
Revised forecast-7０Million
yen

cost
containment

Sales RelatedExpenses
R&D
Personnel
Cost

Controlling SG & A expenses.
（170Million yen）

SG & A

18020

Revised Full-year Forecast Consolidated Statement of Income
Expect increase in cases YoY, but expect increase in sales and decrease in income
due to yen depreciation, supply chain issues, and decline in reimbursement price（Millions of yen , %）FYE Mar 2024Ratio toForcastsales

YoY change
Amount ofRatio ofchangechange

FYE Mar 2023
Ratio toResultssales

Net sales

23,600100.0+2,292+10.8

21,307100.0Cogs
SG & G

8,450
13,35035.8+1,135+15.5

7,315

34.3

56.6

+1,383+11.5

11,967

56.2

Operating income

1,800

7.6- 224- 11.1

2,024

9.5

Ordinary income

1,850

7.8- 193

- 9.5

2,043

9.6

Net income*

1,150

4.9- 273- 19.2

1,423

6.7* Net income attributable to owners of parent

21Compared with Previous Full-year Financial Forecast by Location/Product
Positive growth is expected in all product categories due to an increasein cases acquired in both Japan and U.S.A
FYE Mar 2024

YoY change

Ratio tosales

Amount ofchange

5,030
4,610
3,300
400

55.5
21.3
19.5
14.0
1.7+743+291+287+114+45

13,340

56.5

- 240

10,500

Ratio tochange

FYE Mar 2023
Results

Ratio tosales+6.0+6.2+6.7+3.6+12.8

12,356

58.0

4,738

22.2

4,322

20.3

3,185

15.0354

1.7+738+5.9

12,60159.1- 1.0+4- 2.0- 244- 1.1+1,548+1,519+29+17.3
+17.1
+72.7

8,951

42.0

10,430
70

44.5
44.2
0.3

8,910

41.8

400.2

Total

23,600100.0+2,292+10.8

21,307

100.0

Sales ratio of our own products

19,16080.4+1,783+10.3

17,37780.6

US$ *2

72,254+5,924+8.9

66,330145.32+10.37（Millions of yen ,％）Sales in japan
Joint
TraumaSpine
Other
Subtotal
Subtotal before sales
deduction *3

Sales in U.S *1
Joint
Spine

*1

Conversion rate (yen)Forecast

13,100*2 Thousands of dollars *3 Net income attributable toowners of parent134.95

22

Strategy for the Second Half
Aim to expand sales of focused products and increase sales through new products inboth Japan and U.S.A Reduce manufacturing costs by improving supply chain issues
and reviewing external vendors.

JMDM
••

Expand sales of products for Femoral Neckfracture fixation system.
Expand sales of new products.
Expand sales of Lynx α Plate , Vusion Ti3D ARC Cage.

•Controlling SG & A expenses

ODEV•••••

Expand customer base by acquiring newcustomers.
Launched a new artificial hip joint product.
Expand sales of artificial knee joint products.
Artificial knee joint BKS Uni Nationwide.
Reduction of manufacturing costs.
Improving supply chain issues.
reviewing external vendors.

•Controlling SG & A expenses.
23

3．

Topic

Topic Entered Regenerative medicine field - Knee joint
Launched PRP-FD, a product for early treatment of knee joints, to medical facilities.

Product name：LC-PRP（Lyophilized Concentrated PRP）

What is PRP (platelet-rich plasma)?
• Centrifuge the collected blood and concentrate platelets.
• This treatment utilizes the power of growth factors contained in PRP to draw out thehealing, tissue repair, and regeneration abilities that people naturally possess.
• In addition to suppressing pain and cartilage destruction, this treatment is also lesslikely to cause an immune reaction because it uses only the patient's own blood
components.
Sales start in April 2022
SecuAlign HTO Plate System

Synergistic effects of entering the PRP market
PRP is used not only as a single treatment but also in combination with surgicaltreatments such as SecuAlign HTO Plate, etc. The introduction of this product isexpected to generate synergy effects with our knee joint treatment products.
Trends in PRP Therapy• This treatment is used to treat early knee pain and sports injuries, and the market continues to grow.
• The PRP-FD that we sell allows medical facilities to reduce the investment required to start PRP therapy andthe burden of complying with laws and regulations related to regenerative medicine by outsourcing theextraction of PRP-FD to processors licensed to manufacture specified cellular processed products.

25

Contributing to Medical Care Through the Development and Sale of Advanced
Medical Devices.

Japan Medical Dynamic Marketing,INC.

E-MAILWEB SITE

Investor Relations Office

ir@jmdm.co.jp

https://www.jmdm.co.jp/en/NotesSelected as a constituent of the FTSE Japan Equity ESG Index for the first time.
We selected for the first time as a component of the FTSE Blossom Japan Sector
Relative Index.
We will continue to strengthen our sustainability initiatives and contribute to thedevelopment of a sustainable society by solving various social issues through ourbusiness activities.
What is the FTSE Blossom Japan Industry Relative Index?

✔

✔
✔

Indexes constructed by FTSE Russell, a global index provider.
The index is designed to be sector-neutral, reflecting the relative
performance of Japanese companies with superior environmental, socialand governance (ESG) performance in each sector.

This index is used by the General Pension Investment Fund (GPIF) asan ESG index and is one of the leading indexes for ESG investment

FTSE Russell 【HOME ＞ ALL ＩＮＤＥＸ ＞ FTSE BLOSSOM JAPAN INDEX SERIES】（https://www.ftserussell.com/products/indices/blossom-japan）

28

Sustainability Initiatives (FYE Mar 2024)
CategoryActionSustainability

 Identification of materiality issues

EnvironmentSocial Human Rights Policy Development and Disclosure Disclosure of promotion of diverse human resources (career managementsystem)
・ Develop human resource development policy, including ensuring diversity,and internal environment development policy
・ Diversity & Inclusion, Human Resource Development Initiatives

GovernanceParticipation in TCFD Consortium
Formulation of Environmental Policy
TCFD (Consolidated) Disclosure of GHG emission reduction targets
CDP Score Level "B-" Rating

Sustainability Committee meetings (reported to the Board of Directors)
Convening of Risk Management Committee
Convening of Compliance Committee
Adherence to Corporate Governance CodeWebsite 【HOME ＞ Sustainability】（https://www.jmdm.co.jp/en/sustainability-action/）29

Status of "MODE2023" Medium-Term Management Plan Progress
FYE Mar 2022
（Millions of yen , %）（50th）

Result/ Target

Net salesFYE Mar 2023
（51st）

Ratio

19,193 100.0%/ 18,700

Result/ TargetFYE Mar 2024
（52nd）

Ratio

Forecast/ Target

21,307 100.0%

23,600100.0%

7.6%/ 20,000/ 22,000

Operating income

2,661 13.9%

2,024 9.5%

1,800

Ordinary income

2,591 13.5%

2,043 9.6%

1,850

Net income

2,135 11.1%

1,423 6.7%

1,150

10.7/ 9.2
7.9 / 8.1

6.4 / 9.5
5.6 / 8.5

4.9 / 10.0
4.9 / 9.0

ROE（%）ROIC（%）/ 2,700/ 2,650/ 1,800/ 14.4%/ 14.2%/ 9.6%

Ratio/ 3,000/ 2,950/ 2,000/ 15.0%/ 3,500/ 14.8%/ 3,400/ 10.0%* Exchange rate at the time of setting the Medium-term Management Plan "MODE2023": ¥108/ 2,300/ 15.9%7.8%/ 15.5%

4.9%/ 10.5%30