Securities code：7600

JMDM

Financial Results Briefing for theFiscal Year Ending March 2023
May 12, 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, and are notintended as a promise by us that they will be realized.
Actual results may differ materially due to various factors.
Our products
Artificial
Hip Joint

ArtificialKnee JointTrauma

Spine

-目次Results for the fiscal year ended MarchP. 4２ ．

Forecast for the Fiscal Year Ending March31, 2024

P.18

-

Consolidated net sales

P. 5-

Strategy for the fiscal year ending March 31,2024 (52nd period)

P.19

-

Consolidated Statements of Income

P. 6-

Prior Year Operating Income Comparison
Analysis-

Consolidated Statements of Income

P.20

P. 7-

Consolidated Sales by Major Products

P.21

-

Consolidated Sales by Major Products

P. 8-

Equipment investment, etc.

P.22Japanese market

P. 93 ．

Sustainability

P.23-

Japanese domestic sales 【previous year, samesemester】

P.10

Sustainability Initiatives (Fiscal Year Ending
March 31, 2023)

P.24

-

Sales in Japan 【Prosthetic joints】

P.11

-

Sales in Japan 【Trauma】

P.12

-

Sales in Japan 【Spine】

P.13

U.S. markets

P.14

-

U.S. Sales

P.15

-

Sales in the U.S. 【Comparison with thesame period of the previous year】

P.16

-

Sales in the U.S. 【Prosthetic joints, byproduct】

P.17

1 ． 31, 2023

１．

Results for the fiscal year
ended March 31, 2023

4

Consolidated net sales（Millions of yen）

25,000

vｓ 22/3

21.3
Billion+11.0%

20,000Two
consecutive
Years with
Record Sales

15,00010,0005,0000

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

5

Consolidated Statement of Income
FYE Mar 2023
（Millions of yen , ％）Net sales

Results

21,307

Ratio tosales

YoY change

Amount ofchange

Ratio ofchange'FYE Mar 2022
Results

Ratio tosales

100.0+2,114+11.0

19,193

100.0

7,315
11,96734.3+1,111

+17.9

6,204

32.3

56.2

+1,640+15.9

10,327

53.8

Operating profit

2,024

9.5

▲636

▲23.9

2,661

13.9

Ordinary profit

2,043

9.6▲547

▲21.1

2,591

13.5Net income※1,423

6.7

▲711

▲33.3

2,135

11.1

Cost of Sales
SG&A※Net income attributable toowners of parent

6

Prior Year Operating Income Comparison Analysis
Factors contributing to a ¥630 million decrease in profit for the fiscal year ending March 31, 2023：
Impact of yen depreciation on ODEV product purchases and ODEV SG&A expenses (-0.51 bn yen) The increasein SG&A expenses (-570 million yen) due to increased sales and marketing activities was not offset by theincrease in gross profit (+450 million yen) due to the sales increase.

FYE Mar
202２

Operating profit for 50th-51st fiscal year: Analysis of changes (Unit: Billions of yen)
Note: Increase in SG&A expenses is shown as a negative figure in the graph.

FYE Mar202３

26.６▲6.3Billions

Exchangerate
impact

MDM
Gross Profit
Increase/Decrease

ODEV

Reimbursem
Sales
Gross Profit
ent ofdeduction whereabouts Increase/

Sales
Other

Personnel Remuneration
CostOverseas
TravelR&D

SG & A

Decrease

Increase in gross profit
due to highersales(+450 million yen)

Sales
RelatedExpenses

Increase in SG&Aexpenses(-570
million yen)

20.2
7

Consolidated Sales by Major Products
FYE Mar 2023
（Millions of yen , ％）Japan

Ratio tosales

Results

YoY change

Amount ofchange

FYE Mar 2022

Ratio ofchange

Ratio tosales

Results

12,601

59.1

+192

+1.6

12,409

64.7

4,738

22.2

+18+0.4

4,719

24.6

Trauma

4,322

20.3

+206

+5.0

4,115

21.4

Spine

3,185

15.0+60

+1.9

3,125

16.3

Other354

1.7

▲93

▲20.9

448

2.3

8,951

42.0

+1,880

+26.6

36.8

8,910

41.8

+1,865

+26.5

7,070

7,044

36.7

4021,5520.2+14+54.8

260.1

101.1+2,072+10.6

△ 244

△ 1.1

▲42-21,307

100.0+2,114

Sales ratio of our own products

17,37780.6

US$※266,330

Joint

United States※1JointSpine

Subtotal
Sales deduction※3Total※1 Conversion rate (yen)※2 Thousands of dollars

134.95

19,479

101.5

△ 286

△ 1.5+11.0

19,193100.0+1,936+12.5

15,44179.3+3,690+5.9

62,640+22.07※3 Sales deductions:Deductions associated with the application of the revenue recognition standard.

112.888Japanesemartket9Sales in Japan 【YoY Comparison】（Millions of yen）

accounting period

1Q

2Q

3Q

4Q

Fullyear

Ratio ofincrease/decrease fromthe previous period（%）

＋7.8

＋3.8

▲3.4

▲0.5

＋1.6

20.0%

4,000
20222023

YoY

10.0%
0.0%

3,000

【First Half】
 Increase in the number of cases acquired
due to focus on treatment of femoral necktransplant fractures【Second Half】
 The number of cases acquired decreased in
the third quarter (compared to the previous
fiscal year) due to a shortage of medical
personnel at some hospital facilities.
 Warm Winter Reduces Fracture Cases-10.0% 【Full Fiscal Year】
2,000

1Q

2Q

3Q

4Q

-20.0%

Full-year sales growth was positive (+1.6%)
due to an increase in the number of cases
acquired, despite the impact of
reimbursement price reductions
implemented in April 2022 and January2023 (-2.4%).

10

Sales in Japan 【Joints】（Millions of yen）
5,000

vs 22/3

ODEV Products＋0.4%

Flat growth

BHATHA

Other products※1 Steady growth※2 Steady growth

4,000

Entrada Growth
3,000Intellijoint HIP®
navigation system
Effects of introduction

2,000※1 Bipolar Hip Arthroplasty※2 Total Hip Arthroplasty

1,0000Major impact ofreimbursement pricereductions, etc.
14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

11

Sales in Japan 【Trauma】（Millions5,000 of yen）

vs 22/3

ODEV products＋5.0%

Steady growth

Other products

4,000

Femoral Neck Dislocation
Fracture Treatment Products

3,000

PHS
(ODEV Products)

ASULOCK

2,000(other Products)

Double-digit
Growth1,0000

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

12

Sales in Japan 【Spine】
4,000 of yen）
（Millionsvs 22/3
ODEV products＋1.9%
Steady growth

Other products

Pisces3,000(New ODEV products)

Lynx Plate(Other product)

2,000

1,000

0

KMC BKP Growth
Slowdown
14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

13

U.S.
markets

14

U.S. Sales（Thousands of dollars）$65.6M

70,000$66.3M

60,00050,000

vs 22/3

40,000＋5.9%

Past Updates
on the Highest
Level

30,00020,00010,000
0

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

15

U.S. Sales 【Comparison with the same period of theprevious year】（Thousands of dollars）

accounting
period

1Q

2Q

3Q

4Q

通期

YoY change（%）▲1.6＋5.9

＋9.0

＋10.6

+5.9

20.0%

20,000
2022

2023

YoY

10.0%

Supply chain problems (industry-wide) in thefirst half of the year are improving in the
0.0% second half of the year The resumption of new customer
acquisition activities in the second half ofthe year, which had to be postponed in the-10.0% first half of the year, accelerated theacquisition of new customers and ultimately
led to a recovery to double-digit growth in
the fourth quarter.

15,00010,000

4Q Double-digit
GrowthRecovery

1Q

2Q

3Q

4Q

-20.0%

16

U.S. Sales 【Joint】（Thousands of dollars）

50,000【Hip】$23.1M【Knee】$42.8Mvs 22/3 ＋0.3%

vs 22/3 ＋9.0%

Knee Joint

40,00030,00020,000maintaining
above market
growthHip Joint
Impact of new productlaunches by othercompetitors

10,0000

BKS Revision Knee

19/3

20/3

21/3

22/3

23/3

※ Without DePuy Synthes 「KASM」 Sales

19/3

20/3

21/3

22/3

23/3

17

２．

Forecast for the Fiscal YearEnding March 31, 2024

18

Strategy for the fiscal year ending March 31, 2024
(52nd period)

Aim to increase operating profit based on sales growth
Japanese market

Nationwide sales of new products for
artificial joints and Spinal Fixation Devices

Focused on acquiring cases in the field offemoral neck transverse fracture treatment

Strengthening the customer base by
reinforcing the sales structureStrengthening Sales of Artificial Hip Joints:
Surgical Support Systems （Intellijoint

U.S. market
UHKAS (sponsored by ODEV)Promote joint development with Mitsui
Chemicals, Inc.

Reinforcement of sales structure in WestregionStrengthen sales through nationwide rolloutof new productsStrengthen sales of artificial joints throughoperation of surgical support systemHIP®navigation system）continued operation

Strengthening the customer base through(Naviswiss)Manufacturing Cost Reduction
19

【Forecasts】 Consolidated Statements of Income
FYE Mar 2024
（Millions of yen , ％）Net sales

ForecastYoY change

Ratio tosales

23,300 100.0

Amount ofchange

FYE Mar 2023

Ratio ofchange

Results

Ratio tosales+1,992+9.3

21,307

100.0

7,800
13,00033.5+485

+6.6

7,315

34.3

55.8

+1,033+8.6

11,967

56.2

Operating profit

2,500

10.7+475+23.5

2,024

9.5

Ordinary profit

2,400

10.3+356+17.4

2,043

9.6

Net income※

1,500

6.4+76+5.4

1,423

6.7

Cost of sales
SG & A※Net income attributable toowners of parent20

【Forecasts】 Consolidated Sales by Major Products
FYE Mar 2024
（Millions of yen , ％）Japan

YoY change

Ratio tosales

Forecast

13,580

Amount ofchange

Ratio ofchange

FYE Mar 2023
Results

Ratio tosales

58.2+978+7.8

12,601

59.1

5,260

22.6+521+11.0

4,738

22.2

Trauma4,500

19.3+177+4.1

4,322

20.3

Spine

3,460

14.8+274+8.6

3,185

15.0

Other360

1.5+5+1.5354

1.7

10,00042.9+1,048+11.7

8,951

42.0

10,00042.9+1,090

+12.2

8,910

41.8

-

△40

△100.040

0.2

23,580101.2+2,028+9.4

21,552

101.1

△ 280

△ 1.2

△ 35+14.4△ 244 △ 1.1

23,300100.0+1,992+9.3

21,307

100.0

Sales ratio of our own products

19,06080.8+1,683+9.7

17,377

80.6

US$※2

74,074+7,745+11.6

66,330joint

United States※1jointSpine

Subtotal
Sales deduction
Total※1 Conversion rate (yen)※2 Thousands of dollars

135.00+0.05

134.9521

【Forecasts] Changes in Capital Expenditures, etc.

（Millions of yen）
Investment in plantand equipment
Depreciation andamortization expense※R&D expenses

FYE Mar FYE Mar FYE Mar FYE Mar FYE Mar
2019
2020
2021
2022
2023
Results Results Results Results Results

FYE Mar2024
Forecast

2,075

1,812

1,586

1,665

1,317

2,160

1,159

1,385

1,386

1,420

1,549

1,600

484

470

459

485

662767※Depreciation and amortization" in the statement of income is not equal to "Depreciation and amortization"in the statement of income because it includes depreciation and amortization that are included in manufacturing costs.

22

３．

Sustainability

23

Sustainability Initiatives (FYE Mar 2023)
Category

ActionSustainability

Identification of materiality issues

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

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

Sustainability Committee meetings (reported to the Board of Directors)
Convening of Risk Management Committee
Convening of Compliance Committee
Adherence to Corporate Governance CodeSocialGovernanceWebsite 【Top ＞ Sustainability】（https://www.jmdm.co.jp/en/sustainability-action/）24

Contributing to Medical Care Through the Development andSale of Advanced Medical Devices.

Japan Medical Dynamic Marketing,INC.

E-MAILWEB SITE

Investor Relations Officeir@jmdm.co.jp

https://www.jmdm.co.jp/en/

Appendix

26

① Identification of materiality (Key issues)
Based on our management philosophy of “contributing to healthcare through thedevelopment and sale of leading-edge, superior medical devices,” we have identified
six materialities, classified into “materiality in business activities” and “materiality inbusiness infrastructure,” as environmental and social issues that need to beaddressed as a priority.
【Materiality for our company】
TypeAttributeMateriality

Businessactivities

SContribution to medical careE

Reduction of environmental impactInitiatives to respect human rights

Businessinfrastructure

S

Promotion of diverse human resources(CMS: Career Management System)
Quality response to medical needs

GPromotion of corporate governanceWebsite 【Top ＞ Sustainability ＞ Materiality】（https://www.jmdm.co.jp/en/sustainability-action/materiality/）27

② Environmental Policy Development and Disclosure

Environment

JMDM Group positions environmental initiatives as an important management issue
and, as a responsible member of society, aims to be a company that is trusted bysociety through contributing to the preservation of the global environment and theformation of a circular society.
Environmental Policy of JMDM Group（Summary）
1. Compliance withapplicable Laws andRegulations

We will comply with international declarations, conventions, and treaties related toenvironmental conservation, as well as the laws and regulations of the countries and regionsin which we operate.

2. Climate Change
Response

We take climate change seriously, reducing greenhouse gas emissions and promoting theefficient use of energy.

3. Prevention ofEnvironmental Pollution

We strive to prevent environmental pollution and properly manage chemical substances, etc.
to prevent any impact on the environment.

4. Promotion ofResource Recycling

We will contribute to the formation of a recycling-oriented society by promoting sustainable
use of resources, reduction of resource consumption, and reduction and recycling of waste.

5. Effective Use of
Water Resources

We will strive to conserve water resources through efficient use of water.

6. Disclosure ofInformation

We will strive to proactively disclose information related to the environment.

Website 【Top ＞ Sustainability ＞ Environment】（https://www.jmdm.co.jp/sustainability-action/environment/）28

③ Disclosure based on TCFD (GHG emissions reduction)

Environment

We have disclosed our consolidated GHG emissions Scope 1, 2, and 3 forthe fiscal years ending March 31, 2020 through March 31, 2022.
【Indicators and Targets】【Consolidated GHG emissions Scope 1, 2, 3 ：t-CO₂】（t-CO₂）

Scope1

Scope2

Scope3Total

2020 (Base year)

1,200

769

28,16730,136

2021

1,150

792

22,03023,972

2022

1,256

896

26,00228,154

CDP Assessment(2022)「B－」（Management Level）

Website 【Top ＞ Sustainability ＞ Environment】（https://www.jmdm.co.jp/sustainability-action/environment/）29

④ Human Rights Policy Development and Disclosure Social
We have formulated and disclosed the "Japan MDM Group Human Rights
Policy" in order to promote group-wide efforts to respect human rights andendeavor to fulfill its responsibilities.
Human Rights Policy of JMDM Group（Summary）

BasicPhilosophy

Based on its management philosophy of “Contributing to Medical Carethrough the Development and Sale of Advanced Medical Devices,”
JMDM Group recognizes that all of its business activities must be
based on the premise of respect for human rights. The entire company
is committed to promoting respect for human rights and making everyeffort to fulfill its responsibilities.

Website 【Top ＞ Sustainability ＞ Social】（https://www.jmdm.co.jp/en/sustainability-action/social/）30

⑤ Promotion of diverse human resources（Career Management System）

SocialWe have introduced CMS (Career Management System) that allows each employee to consider his or her own career
and to develop his or her career through interaction with the company and superiors. In addition, we are promoting
the creation of a system for human resource development that takes diversity into consideration through selective
training and a personnel rotation system.
To promote these systems, we are also working to improve the internal environment, including IT systems such as My
Career for thinking about one’s career and My Voice for communicating requests to the company and superiors, acareer consulting system for career support, and a self-career docking system for all employees.

Internal Environmental Improvement Policy

Human Resource Development Policy1.

We will promote the reinforcement and operation ofa system (CMS (Career Management System)) thatallows each employee to think about his/her career,and to develop career through interaction with thecompany and his/her supervisor.(CMS (CareerManagement System)), a system that allows each
employee to think about his or her career anddevelop his or her career through interaction withthe company and supervisors2.

We will foster a “sense of contribution” for the
benefit of society, healthcare, patients, andcolleagues.

3.

We will promote the “exercise of individuality” of all
employees so that they can play an active role
regardless of their attributes, valuing their“individuality.

4.

We will promote the use of training programs basedon our original job classification and list of job
requirements, with an awareness of career paths.

5.

We will promote the development of expertise ineach position.

1.

We believe it is important to ensure diversity at all job levels andin management, and we will promote hiring and promotion
according to ability and experience regardless of age, gender, ornationality.

2.

We will enhance internal systems that help employees balance
their professional and family lives (e.g., time off in units of hours,flexible working hours, etc.).

3.

Enhance training programs to improve expertise in each position.

4.

We will promote the use of IT systems such as My Career for thinking
about one’s career, My Voice for communicating awareness andrequests to the company and superiors, etc.

5.

We will promote a career consulting system that respects thewishes of individuals and a self-career dock system for all
employees.

31