Summary of Consolidated Financial Results for
the Fiscal Year Ended March 2023 [Japanese GAAP]

April 28, 2023
Company name
Japan Medical Dynamic Marketing, INC.
Listing
TSE
Securities Code7600
URL http://www.jmdm.co.jp/
Representative (Title) Representative Director and President (Name) Toshiyuki Hironaka
Contact person
General Manager, Investor Relations(Title)(Name) Shinji Munechika (TEL) +81-3-3341-6705
in charge
OfficeScheduled date of the ordinary
Scheduled date of commencement ofJune 23, 2023
June 26, 2023
general meeting of shareholders
dividend payment
Scheduled date of submission ofJune 27, 2023
the annual securities report
Preparation of supplementary materials for financial results : Yes
Holding of financial results briefing: Yes(for institutional investors and analysts)(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended March 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Million yen%

Ordinary profit

Million yen

FYE March 2023
21,30711.0
FYE March 2022
19,193
14.7(Note) Comprehensive income FYE March 2023
FYE March 2022%

Million yen

2,024(23.9)
2,661
22.7¥2,209 million (-28.0%)¥3,069 million (54.6％)

Net income per share

Diluted net income
per share

Yen

Yen

FYE March 2023
54.03
FYE March 2022
80.95
(Reference) Equity in earnings (losses) of affiliates

2,043
2,591

%

Net income attributable toowners of parent
Million yen(21.1)
21.9

1,423
2,135

Ordinary profit tototal assets

Return on equity
%

6.4
10.7
FYE March 2023 (-¥63 million)%(33.3)
28.3

Operating profit
margin

%

%

7.2
9.5
9.9
13.9
FYE March 2022 (-¥12 million)(2) Consolidated Financial Position
Total assets

Net assets

Million yen

FYE March 2023
FYE March 2022
(Reference) Shareholders’ equity

Capital adequacy ratio

Million yen

Net assets per share%

Yen

29,43423,292
78.7
27,342
21,49178.2
FYE March 2023 ¥23,161 million FYE March 2022 ¥21,386 million(3) Consolidated Cash Flows

Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen

FYE March 2023
FYE March 2022

Million yen

2,186
3,111

Cash flows fromfinancing activities

Million yen(1,481)(1,750)880.64810.59Cash and cash equivalents
at the end of the period
Million yen(514)(1,287)

2,804
2,590

2. Dividends
Annual dividends
End of first End of second End of third
quarterquarterquarter

FYE March 2022
FYE March 2023
FY ending March 2024
(Forecast)Yen

End ofperiodYen

Total
dividends

Total

-

0.00
0.00

Yen

Yen

-

12.00
13.00

12.00
13.00

Yen

-

0.00

-

14.00

14.00

Million yen

317
343

Dividend Dividends on
payout ratio
net assets(consolidated) (consolidated)
%

14.8
24.1
24.5

%

1.6
1.5

3. Consolidated Financial Forecasts for the Fiscal Year Ending March 2024 (from April 1, 2023 to March 31, 2024)(Percentages indicate changes from the previous year for the full year, and from the same quarter of the previous year for the quarter.)

Net sales
Q2 (Cumulative)
Full year

Operating profit

Million yen%

10,80023,300Million yen

8.1
9.3

Ordinary profit%

Million yen

800 (13.7)
2,500
23.5

%

750 (18.2)
2,400
17.4

Net income attributableto owners of parent
Million yen

%

450
1,500

Net income per
share

Yen

(37.6)
5.4

17.11
57.03

*Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in changes in scope of consolidation) : None
Newly included- companies(company name)-,

Excluded- companies(company name)-(2) Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standard: Yes2) Changes in accounting policies other than 1): None3) Changes in accounting estimates: None4) Retrospective restatement: None(3) 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 the period

FYE March 2023

26,475,880 shares FYE March 2022

26,475,880 shares

FYE March 2023

175,107 shares FYE March 2022

92,179 shares

FYE March 2023

26,351,799 shares FYE March 2022

26,383,754 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 2023 (from April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)(1) Non-consolidated Operating Results
Net salesFYE March 2023
FYE March 2022

Operating profit

Million yen%

12,356
12,122Million yen

1.9
9.6

Net income per shareYen

FYE March 2023
FYE March 2022

Ordinary profit
%

1,231
1,844

(33.2)
32.6

Million yen

1,285
1,936

Net income%(33.6)
30.9

Million yen

732
1,281

%

(42.8)
2.0

Diluted net income per
share

Yen

27.80
48.58

-

(2) Non-consolidated Financial Position
Total assets
FYE March 2023
FYE March 2022
(Reference) Shareholders’ equity※※

Million yen

20,531
20,343FYE March 2023

Net assets
Million yen

Capital adequacy ratio%

Net assets per share

16,25679.2
15,901
78.2¥16,256 million
FYE March 2022 ¥15,901 million

Yen

618.09602.71This summary of 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 “1. Overview of Operating Results, etc. (4) Future Outlook” on page 4 of the attached document for theassumptions underlying the forecasts, notes on using the forecasts, etc.
• The Company will hold a financial results briefing for institutional investors and analysts on May 12, 2023. Financial results
briefing materials to be used on the day of the briefing will be posted on the Company’s website on the day of the briefing.

―2―

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

○ Table of Contents of Attachment
1. Overview of Operating Results, etc. ........................................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review ................................................................ 2(2) Financial Position for the Period under Review ............................................................................................ 3(3) Overview of Cash Flows for the Period under Review ................................................................................. 3(4) Future Outlook .............................................................................................................................................. 4
2. Basic Approach to the Selection of Accounting Standards ......................................................................................... 5
3. Consolidated Financial Statements and Major Notes ................................................................................................. 6(1) Consolidated Balance Sheet .......................................................................................................................... 6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ....................... 8(3) Consolidated Statement of Changes in Equity ............................................................................................ 11(4) Consolidated Statement of Cash Flows ....................................................................................................... 13(5) Notes to Consolidated Financial Statements ............................................................................................... 15(Note on Going Concern Assumption) ........................................................................................................ 15(Changes in Accounting Policies) ............................................................................................................... 15(Segment Information, etc.) ........................................................................................................................ 15(Per Share Information) .............................................................................................................................. 18(Significant Subsequent Events) ................................................................................................................. 18―1―

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review

During the fiscal year ended March 31, 2023 of the Group, net sales were ¥21,307 million (up ¥2,114 million, or 11.0% year onyear), operating profit was ¥2,024 million (down ¥636 million, or 23.9% year on year), ordinary profit came to ¥2,043 million(down ¥547 million, or 21.1% year on year), and net income attributable to owners of parent was ¥1,423 million (down ¥711 million,or 33.3% year on year). Net sales of our own products accounted for 80.6% of consolidated net sales (79.3% in the previous fiscal
year).
In Japan, despite an increase in the number of acquired cases in the first half, net sales were ¥12,601 million (up ¥192 million, or
1.6% year on year). This was because of a decrease in the number of acquired cases in the third quarter (compared with the samequarter in the previous fiscal year), partly due to the impact of a shortage of medical personnel at some hospital facilities, and partly
due to the impact of the lowering of reimbursement prices implemented in April 2022 for the full year.
In the United States, net sales to external customers increased to $66 million (up 5.9% year on year). This was because the delayedsales contracts with new customers were concluded successively in the second half as the supply chain issue that arose in the firsthalf improved in the second half, and the number of cases acquired increased due to the implementation of various sales promotion
measures for existing customers. After translation into yen, net sales were ¥8,951 million (up ¥1,880 million, or 26.6% year on year)
due to the impact of the yen’s depreciation. In the fourth quarter, in particular, we achieved double-digit growth in U.S. dollar terms,
up 10.6% from the same period of the previous year. (Reference: The exchange rate for U.S. sales was 112.88 yen to the U.S. dollar
in the previous fiscal year and was 134.95 yen to the U.S. dollar in the fiscal year under review.)
In the artificial joints category, sales were ¥4,738 million (up 0.4% year on year) due to an increase in the number of acquired cases
despite the lowering of reimbursement prices in Japan. In the United States, moreover, U.S. sales increased to $66 million (up 5.8%
year on year). And in particular, sales of the artificial knee joints BKS Revision Knee were strong. After translation into yen, U.S.
sales were ¥8,910 million (up 26.5% year on year) due to the impact of the yen’s depreciation.
In the category of trauma, the fiscal year under review saw some hospital facilities having difficulty performing surgery in the third
quarter due to a shortage of medical personnel, compared with the previous fiscal year, when the number of cases increased
following the lifting of behavioral restrictions. However, sales in Japan were ¥4,322 million (up 5.0% year on year), mainly due to
steady sales of ASULOCK and Prima Hip Screw.
In the category of spinal fixation devices, sales of our own product Pisces Spinal System continued to be steady in Japan. As a result,
total net sales in Japan and the United States were ¥3,226 million (up 2.4% year on year), despite the sluggish growth of KMC
Kyphoplasty System due to the impact of the entry of competitors in the Balloon Kyphoplasty (BKP) market.
As for cost of sales, the cost of sales ratio was 34.3% (32.3% in the previous fiscal year) mainly due to the impact of the yen’s
depreciation and lowering of reimbursement prices in Japan. Selling, general, and administrative expenses totaled ¥11,967 million(up 15.9% year on year). This was due to an increase in personnel expenses as a result of strengthening of the systems in Japan, an
increase in commission expenses (commissions and royalties) in the wake of higher sales in the United States, an increase in researchand development expenses for new products and an increase in expenses after translation into yen, in the United States affected by
the depreciation of the yen. In addition, the ratio of selling, general, and administrative expenses to net sales grew to 56.2% (53.8%
in the previous fiscal year).
Despite an increase in net sales, operating profit was ¥2,024 million (down 23.9% 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 ¥2,043 million (down 21.1% year on year) as a result of recording non-operating income of ¥146 million,
including foreign exchange gains of ¥100 million and insurance claim income of ¥13 million, and recording non-operating expensesof ¥127 million, including share of loss of entities accounted for using equity method of ¥63 million.
As for extraordinary income and losses, ¥25 million in compensation income was recorded under extraordinary income, and ¥56
million in loss on retirement of non-current assets such as medical tools, ¥100 million in transfer to provision for litigation settlementand ¥142 million in loss on sales suspension of products during development verification period were recorded under extraordinary
losses of ¥299 million.
Net income attributable to owners of parent decreased 33.3% year on year to ¥1,423 million, due to the above results and the postingof ¥310 million in gain on forgiveness of debts as extraordinary income in the previous fiscal year.
(Reference) Consolidated Net Sales by Major Item

Fiscal year under review
Compared to theprevious fiscal year
(From April 1, 2022 to March 31, 2023)(%)
Amount (in thousand yen)Japan
12,601,596
101.6
Joint
4,738,514
100.4
Trauma4,322,521
105.0
Spine
3,185,979
101.9
Medical devices
Other354,580
79.1
United States
8,951,174
126.6
Joint
8,910,644
126.5
Spine
40,529154.8
Subtotal (A)21,552,770
110.6
Sales deduction (B)(244,824)
Total (A) + (B)21,307,946
111.0
Ratio (%)
Change (%)
Sales ratio of our own products
80.6
+1.4
(Note) Inter-segment transactions are offset and eliminated. As the amount of “Japan, Artificial bones,” which had been separately
disclosed in the previous fiscal year, became less important, it was included in “Japan, Other,” starting from the fiscal year
under review.
Name and item of each segment―2―Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

Segment results are as follows.
(Japan)Net sales were strong in major categories. Selling, general, and administrative expenses also increased due to the increased
payroll and allowances as well as increases in advertising and other expenses as operating activities recovered.
As a result, net sales in this segment were ¥12,356 million (up 1.9% year on year) and operating profit was ¥1,231 million (down
33.2% year on year).
(United States)
Net sales increased for those to external customers in the artificial joints category. Selling, general, and administrative expenses
also increased due to increases in commission expenses (mainly commissions) as well as payroll and allowances.
As a result, net sales in this segment, including internal sales, were ¥12,782 million (up 17.6% year on year) and operating profit
was ¥647 million (down 22.8% year on year).

(2) Financial Position for the Period under Review

1) Assets
Total assets at the end of the fiscal year under review increased by ¥2,091 million from the end of the previous fiscal year to¥29,434 million. The main increases were in merchandise and finished goods by ¥1,191 million, raw materials and supplies by¥223 million and cash and deposits by ¥214 million.
2) Liabilities
Total liabilities increased ¥291 million from the end of the previous fiscal year to ¥6,142 million. The main increases were in
short-term borrowings by ¥489 million, accounts payable - trade by ¥193 million and retirement benefit liability by ¥184 million,
and the main decrease was in long-term borrowings by ¥515 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 negative ¥933 million at the end of the fiscal
year under review.
3) Net assets
Total net assets increased ¥1,800 million from the end of the previous fiscal year to ¥23,292 million. The main increases werein retained earnings by ¥1,106 million and in foreign currency translation adjustment by ¥811 million.

(3) Overview of Cash Flows for the Period under Review

Cash and cash equivalents at the end of the fiscal year under review increased by ¥214 million from the end of the previous fiscal
year to ¥2,804 million. Cash flows for the fiscal year under review and their factors are as follows
1) Cash flows from operating activities
Net cash provided by operating activities was ¥2,186 million, compared with ¥3,111 million in the previous fiscal year. Maincomponents of income were net income before income taxes and others of ¥1,549 million and depreciation of ¥1,548 million.
Main components of the expenditure were an increase in inventories by ¥1,005 million and income taxes paid of ¥583 million.
2) Cash flows from investing activities
Net cash used in investing activities was ¥1,481 million, compared with ¥1,750 million in the previous fiscal year. The main
component was an expenditure of ¥1,222 million for the purchase of property, plant, and equipment.
3) Cash flows from financing activities
Net cash used in financing activities was ¥514 million, compared with ¥1,287 million in the previous fiscal year. The main
components of the expenditure were repayments of long-term borrowings of ¥574 million and dividends paid of ¥317 million.
The main component of income was a net increase in short-term borrowings by ¥501 million.

―3―

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

(4) Future Outlook

Japan• Growth of the elderly population
The population of elderly aged 65 and older in Japan is expected to increase from about 37.1 million in 2021 to about 39.2 million
in 2040 (about 35% of the total population). With the increase in the elderly population, the number of patients with bone diseases(bone fractures caused by coxarthrosis, knee osteoarthritis, spinal canal stenosis, osteoporosis, etc.) is expected to increase, andthe number of applicable cases using our products is expected to increase in the future as well.
• Lowering of reimbursement prices
In order to promote the establishment of an efficient, effective, and high-quality healthcare provision system in the absence of
expectations for a significant increase in tax revenues, it will be inevitable for the government to curb social security-related
expenses. Accordingly, we assume that the tough market environment will continue, such as lower reimbursement prices due torevisions of medical service fees. The reimbursement prices of some of our products and medical services were reduced due to thereimbursement price revision on April 1, 2023 announced by the Ministry of Health, Labour and Welfare (transitional measure forthe prices of specified treatment materials of April 1, 2022).

United States• Growth of the elderly population
The population of elderly aged 65 and older in the U.S. is expected to increase from about 56.2 million in 2021 to about 80.0
million in 2040 (about 21% of the total population). In addition, since there is expected to be a continuous need to improve thequality of life (QOL) of non-elderly patients with degenerative joint disease caused by obesity, etc., the number of patientsrequiring artificial joint replacement is expected to grow, and the number of applicable cases using our products is expected toincrease in the future as well.
• Changes in medical needs
In the field of orthopedic surgery as well, we recognize that there is an increasing need for digital solutions such as preoperative
surgery planning software, intraoperative surgical navigation systems, and robotic surgery. The need to reduce treatment costs has
become greater, and the number of artificial joints surgeries in Ambulatory Surgical Centers (ASCs), that perform artificial joints
surgeries on an outpatient basis rather than on an inpatient basis, is on the rise. This is likely to give rise to a greater need for
medical facilities to procure implant and medical tools that contribute to improved operational efficiency at low cost.
Other• Decline in profitability due to exchange rate fluctuations (weak yen)
The trend of the yen’s depreciation against the U.S. dollar has been continuing since the tightening of monetary policy in the
United States. The actual exchange rate deviates significantly from the assumed exchange rate (108 yen/US dollar) in our mediumterm management plan due to the weaker yen, and we believe that product imports from our U.S. subsidiary will be affected(deterioration of cost ratio) by exchange rate fluctuations (yen depreciation).
In order to minimize the decline in profitability, we will increase the sales ratio of our own products, including the expansion of
our U.S. business by introducing new products developed in-house. In the medium to long term, we will also utilize WOMA
(Changzhou Waston Ortho Medical Appliance Co., Limited) in China, a joint venture established in May 2021, to improve
profitability by reducing expenses through lower costs of medical tools.
• Business alliance with Mitsui Chemicals, Inc.
In collaboration with Mitsui Chemicals, Inc., with which we entered into a capital and business alliance agreement in January2022, we are promoting collaboration, including product development. The premise is to make mutually effective use of its
healthcare development and manufacturing functions and our pharmaceutical and development functions, and sales and marketing
functions in the medical device field.
Medium-term Management Plan, MODE 2023
The Company has formulated a medium-term management plan, MODE 2023, which shall be implemented over the three years
from the fiscal year ended March 2022 (the 50th term) to the fiscal year ending March 2024 (the 52nd term). We are tackling thefollowing key policies, with the medium-term management policy that “in addition to responding to various needs in medical
settings, such as improvement of treatment outcomes, we will provide services (implants, medical tools, surgical support systems,etc.) that help to improve the value of treatment (safety and efficacy, improvement of treatment revenue by shortening
hospitalization, etc.) to medical settings in a timely manner with greater expertise, and will thereby contribute to enhancing the
QOL of patients. ”―4―Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

MODE 2023 Key Policies
1) Overseas business expansion2) R&D and procurement enhancement
3) Human resources and organizational enhancement
4) Promotion of digitalization
Sustainability Issues
Based on its management philosophy of “Contributing to Medical Care Through the Development and Sale of Advanced Medical
Devices,” the Company has identified six material issues as priority environmental and social issues, which it classifies into two
categories: “Materiality in Business Activities” and “Materiality in Business Infrastructure.” The Company Group is committed
to fulfilling its corporate social responsibilities and promoting its sustainable growth.
Based on the above, the Company forecasts net sales of ¥23,300 million, operating profit of ¥2,500 million, ordinary profit of¥2,400 million, and net income attributable to owners of parent of ¥1,500 million for the next fiscal year. For reference, theexchange rate assumed in the consolidated financial forecast is 135 yen per US dollar.

2. Basic Approach to the Selection of Accounting Standards
The Company Group has fully considered the various impacts of applying the International Financial Reporting Standards (IFRS),
including the enhancement of the international comparability of financial information in capital markets, but has decided to apply
the Japanese GAAP for the time being.

―5―Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(In thousand yen)Previous fiscal year
(March 31, 2022)

Fiscal year under review(March 31, 2023)

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

2,590,849
5,212,555

2,804,928
5,270,930

Merchandise and finished goods
Work in process

8,186,658
497,823

9,378,119
593,162

Raw materials and supplies
Other

1,410,927
149,211

1,634,044
295,253

Allowance for doubtful accounts
Total current assets(1,386)(1,358)18,046,638

19,975,079

728,450
350,978

837,544306,786

4,691,605
1,953,479

4,600,008
1,956,171

48,17344,246

7,772,687

7,744,756

291,960

263,037

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―6―-

66,770174,887
971,990

204,910
1,104,875

84,55875,283

1,231,435

1,451,839

9,296,083

9,459,634

27,342,722

29,434,714

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

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

Fiscal year under review(March 31, 2023)

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

785,671557,046

979,185
1,046,733

Lease liabilities
Income taxes payable

33,163
266,440

34,553
339,245

Accrued expenses
Accounts payable - other

512,569
189,283

511,861
193,732

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

194,015
65,200196,606
64,510

Provision for loss on business
Provision for litigation settlement

65,000-2,546
100,000

Other

231,291

158,217

Total current liabilities

2,899,680

3,627,191

Non-current liabilities
Long-term borrowings

1,247,662

732,248

10,875
1,023,546

58,163
1,208,511

Provision for share awards for directors (and other officers)
Asset retirement obligations

88,322
29,201

103,514
29,493Long-term deposits received
Deferred tax liabilities

8,000
544,310

8,000
375,495

Total non-current liabilities

2,951,919

2,515,427

5,851,600

6,142,618

Shareholders’ equity
Share capital

3,001,929

3,001,929

Capital surplus
Retained earnings

2,587,029
14,550,073

2,587,029
15,656,266

Lease liabilities
Retirement benefit liability

Total liabilities
Net assets

Treasury shares(111,940)(202,730)

Total shareholders’ equity

20,027,090

21,042,494

Deferred gains or losses on hedges
Foreign currency translation adjustment

1,351,922

30,294
2,163,161

Remeasurements of defined benefit plans

7,429(74,317)

1,359,352

2,119,138

104,678

130,462

21,491,121

23,292,095

27,342,722

29,434,714

Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―7―Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales

Previous fiscal year
(From April 1, 2021
to March 31, 2022)
19,193,098
6,204,233(In thousand yen)
Fiscal year under review(From April 1, 2022
to March 31, 2023)
21,307,946
7,315,297

Gross profit

12,988,865

13,992,648

Promotion expenses
Freight and packing costs

145,725
366,122

189,267
416,216

Advertising expenses
Provision of allowance for doubtful accounts

75,549(704)

90,901(28)

3,367,594
102,210

3,708,942
99,965

303,485
214,373

321,983
269,013

Travel and transportation expenses
Depreciation

142,873
1,241,117

264,746
1,350,323

Research and development expenses
Taxes and dues

485,557
158,617662,942
146,990

Commission expenses
Other

2,407,474
1,317,337

3,024,608
1,422,103

Total selling, general, and administrative expenses

10,327,335

11,967,976

2,661,529

2,024,671

Interest income
Foreign exchange gains

121
-

99
100,294

Insurance claim income
Commission income

11,706

13,220
2,844

Other

11,40329,801

Total non-operating income

23,230146,260

29,70035,53018,145-

12,70463,857

7,393

9,396

Selling, general, and administrative expenses

Salaries and allowances
Retirement benefit expenses
Legal welfare expenses
Welfare expenses

Operating profit
Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodCommission for syndicated loans
Other

8,140

35,673

Total non-operating expenses

93,469127,072

2,591,291

2,043,860-

25,000Ordinary profit
Extraordinary income
Compensation income
Gain on forgiveness of debt

310,826－

Total extraordinary income

310,826

25,000Loss on retirement of non-current assets
Impairment losses

87,151
162

56,129100

Transfer to provision for loss on businessTransfer to provision for litigation settlement

65,000-100,000

Extraordinary losses

Loss on product sales suspension
Total extraordinary losses
Net income before income taxes and others―8―-142,833

152,313

299,0632,749,804

1,769,797

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

Income taxes - current
Income taxes - deferredPrevious fiscal year
(From April 1, 2021
to March 31, 2022)
497,268
110,827(In thousand yen)
Fiscal year under review(From April 1, 2022
to March 31, 2023)
664,869(330,798)

608,096

334,070

2,141,708

1,435,726

6,014

12,0062,135,693

1,423,719

Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent―9―Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

Consolidated statement of comprehensive income
Previous fiscal year
(From April 1, 2021
to March 31, 2022)
2,141,708(In thousand yen)
Fiscal year under review(From April 1, 2022
to March 31, 2023)
1,435,726(2,788)890,271

30,294
825,016

Remeasurements of defined benefit plans, net of tax

40,167(81,747)

Total other comprehensive income

927,650

773,563

3,069,358

2,209,289

3,049,144

2,183,505

20,21425,784

Net income
Other comprehensive income
Deferred gains or losses on hedges
Foreign currency translation adjustment

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―10―

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

(3) Consolidated Statement of Changes in Equity
Previous Fiscal Year (from April 1, 2021 to March 31, 2022)(In thousand yen)
Shareholders’ equity
Share capital
Balance at the beginningof period

3,001,929

Capital surplus

Retained earnings

2,587,029

12,705,447

Treasury shares(111,539)

Total shareholders’equity18,182,866

Changes during period
Dividends of surplus
Net income attributableto owners of parent
Purchase of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at the end of
period(291,067)(291,067)

2,135,693

2,135,693
(401)

(401)

-

-

1,844,626(401)

1,844,224

3,001,929

2,587,029

14,550,073(111,940)

20,027,090

Foreign currency Remeasurements of Total accumulatedtranslation
defined benefit
other comprehensive
adjustment
plansincomeNon-controllinginterests

Total net assets

84,464

18,713,232

Accumulated other comprehensive income
Deferred gains orlosses on hedges
Balance at the beginningof period

2,788

475,850(32,737)

445,901

Changes during period
Dividends of surplus
Net income attributableto owners of parent
Purchase of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at the end of
period(291,067)
2,135,693(401)(2,788)876,071

40,167

913,450

20,214

933,665(2,788)876,071

40,167

913,450

20,2142,777,889-

1,351,922

7,429

1,359,352

104,678

21,491,121―11―

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

Fiscal Year under Review (from April 1, 2022 to March 31, 2023)(In thousand yen)
Shareholders’ equity
Share capital
Balance at the beginningof period

3,001,929

Capital surplus

Retained earnings

2,587,029

14,550,073

Treasury shares(111,940)

Total shareholders’equity20,027,090

Changes during period
Dividends of surplus
Net income attributableto owners of parent
Purchase of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at the end of
period(317,526)(317,526)

1,423,719

1,423,719(90,789)(90,789)--

1,106,193(90,789)

1,015,403

3,001,929

2,587,029

15,656,266(202,730)

21,042,494

Foreign currency Remeasurements of Total accumulatedtranslation
defined benefit
other comprehensive
adjustment
plansincomeNon-controllinginterests

Total net assets

104,678

21,491,121

Accumulated other comprehensive income
Deferred gains orlosses on hedges
Balance at the beginningof period－

1,351,922

7,429

1,359,352

Changes during period
Dividends of surplus
Net income attributableto owners of parent
Purchase of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at the end of
period(317,526)
1,423,719(90,789)
30,294

811,238(81,747)

759,785

25,784

785,569

30,294

811,238(81,747)

759,785

25,7841,800,973

30,294

2,163,161(74,317)

2,119,138

130,462

23,292,095―12―

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

(4) Consolidated Statement of Cash Flows
Previous fiscal year
(From April 1, 2021
to March 31, 2022)
Cash flows from operating activities
Net income before income taxes and others
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in remeasurements of defined benefit plans
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for share awards for directors(and other officers)
Interest and dividend income
Interest expenses
Commission for syndicated loans
Foreign exchange losses (gains)Share of losses (earnings) of entities accounted for using equity
methodGain on forgiveness of debt
Loss (gain) on sale and retirement of non-current assets
Impairment losses
Transfer to provision for litigation settlement
Loss on product sales suspension
Increase (decrease) in provision for loss on business
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in prepaid expenses
Increase/decrease in consumption taxes payable/consumption
taxes refund receivable
Other
SubtotalInterest and dividends received
Interest paid
Commission for syndicated loans paid
Income taxes (paid) or refunded
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant, and equipment
Purchase of intangible assets
Purchase of investment securities
Payments for investments in capital of subsidiaries and associates
Other
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Purchase of treasury shares
Dividends paid
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period―13―(In thousand yen)
Fiscal year under review(From April 1, 2022
to March 31, 2023)

2,749,804
1,420,777
198
59,602
23,007
20,743

1,769,797
1,549,812(28)
47,038
20,1002,591

10,980(690)

17,00015,192(121)
29,7007,393
56,453(99)
18,1459,396
74,494

12,70463,857(310,826)
87,151
162
65,000(662,063)(224,389)
252,823(16,378)

59,664100
100,000
142,833(62,453)
10,953(1,005,629)
154,939(95,432)

29,739(76,811)(6,417)
3,623,045(5,510)2,792,262

121(34,253)(3,176)(474,070)
3,111,665

99(17,911)(5,180)(583,044)
2,186,226(1,538,038)(46,972)(165,933)
821(1,222,370)(93,183)(67,475)(99,188)298(1,750,123)(1,481,919)(369,320)(595,230)(32,592)(401)(290,201)(1,287,745)

501,212(574,602)(33,163)(90,939)(317,287)(514,780)

50,721
124,517

24,552
214,079

2,466,331

2,590,849

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

Previous fiscal year
(From April 1, 2021
to March 31, 2022)
2,590,849

Cash and cash equivalents at the end of the period―14―(In thousand yen)
Fiscal year under review(From April 1, 2022
to March 31, 2023)
2,804,928

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

(5) Notes to Consolidated Financial Statements(Note on Going Concern Assumption)
Not applicable.
(Changes in Accounting Policies)(Application of Financial Accounting Standards Board Accounting Standards Codification (ASC) No. 842, "Leases")
Effective from the current fiscal year, the Company's U.S. subsidiaries have adopted ASC No. 842, "Leases. As a result of thischange, in principle, all leases by lessees are recognized as assets and liabilities on the balance sheet. As a result, "Buildings andstructures" and "Machinery, equipment and vehicles" of tangible fixed assets increased by 73,195 thousand yen and 1,057 thousand
yen, respectively, and "Lease obligations" of current liabilities and fixed liabilities increased by 28,133 thousand yen and 53,707
thousand yen, respectively, in the consolidated balance sheet as of March 31, 2023. The effect of this change on the consolidated
statement of income for the current fiscal year is immaterial.
(Segment Information, etc.)(Segment Information)
1. Overview of Reportable Segments
The business type in the Company Group is a single segment of the Medical Devices Business. However, the reportable segments,
each of which has separate financial information available, are subject to periodic review by the Board of Directors to determine
the allocation of management resources and evaluate business performance.
The Company Group manufactures and sells “medical devices mainly in the field of orthopedics.” Japan Medical Dynamic
Marketing, INC. (hereinafter “the Company”) as the parent company based in Japan, and Ortho Development Corporation(hereinafter “ODEV”) as its overseas subsidiary based in the United States, operate as independent management units.
Accordingly, the Company Group consists of regional (country) segments based on manufacturing and sales, with “Japan” and the“United States” as two reportable segments.
In “Japan” the Company purchases products such as artificial joints, trauma, and spinal fixation devices in the field of orthopedics
mainly from ODEV, as well as from other domestic and overseas manufacturers based on sales alliance agreements, etc., and sells
them in Japan. In the “United States” ODEV develops and manufactures artificial joints, trauma, spinal fixation devices, and otherproducts, and supplies them to the Company. In addition, ODEV independently sells artificial joints, spinal fixation devices, andother products primarily in the U.S. market.
2. Calculation Method of the Amounts of Net Sales, Profit or Loss, Assets, Liabilities, and Other Items by Reportable Segment
Assets and liabilities of the foreign subsidiary are converted into Japanese yen at the spot exchange rates prevailing at the balance
sheet date, and revenues and expenses are converted into Japanese yen at the average exchange rates prevailing during the period.
Translation differences are included in the foreign currency translation adjustment in net assets.
Reportable segment profit is based on operating profit. Inter-segment revenues and transfers are based on prevailing market prices.

―15―

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

3. Information on the Amounts of Net Sales, Profit or Loss, Assets, Liabilities, and Other Items by Reportable Segment, andInformation on the Breakdown of Revenues
Previous Fiscal Year (from April 1, 2021 to March 31, 2022)(In thousand yen)Amount reported inReportable segment
Adjustment
consolidated(Notes) 1, 2
financial statements
Japan
United States
Total(Note) 3
Net sales
Revenue from contracts withcustomers
Net sales to externalcustomers
Inter-segment net sales ortransfers

12,122,222

7,070,875

19,193,098-

19,193,098

12,122,222

7,070,875

19,193,098-

19,193,098-

3,797,478

3,797,478(3,797,478)-

12,122,222

10,868,354

22,990,577(3,797,478)

19,193,098

Segment profit

1,844,790

839,061

2,683,851(22,321)2,661,529

Segment assets

18,243,161

11,431,188

29,674,350(2,331,628)

27,342,722

Segment liability

4,441,953

2,020,302

6,462,255(610,655)

5,851,600

759,692

729,041

1,488,733(67,956)

1,420,777

Total

Other Items
Depreciation

Increase in property, plant,
and equipment and intangible
1,189,088
616,883
1,805,971(140,303)
1,665,668
assets
Notes: 1. Adjustments for segment profit, segment assets, segment liabilities, and other items represent the elimination of intersegment transactions.
2. The negative adjustment of ¥2,331,628 thousand to segment assets includes ¥2,100,495 thousand of corporate assets(mainly the Company’s cash and deposits) and the negative adjustment of ¥1,784,204 thousand to inventories.
3. Segment profit is adjusted with operating profit in the consolidated statement of income.
Fiscal Year under Review (from April 1, 2022 to March 31, 2023)
Reportable segment
Japan

United States

Total(In thousand yen)Amount reported inconsolidated
financial statements(Note) 3

Adjustment(Notes) 1, 2

Net sales
Revenue from contracts withcustomers
Net sales to externalcustomers
Inter-segment net sales ortransfers

12,356,772

8,951,174

21,307,946-

21,307,946

12,356,772

8,951,174

21,307,946-

21,307,946-

3,830,948

3,830,948(3,830,948)-

12,356,772

12,782,123

25,138,895(3,830,948)

21,307,946

Segment profit

1,231,439

647,975

1,879,414

145,257

2,024,671

Segment assets

18,305,786

12,922,109

31,227,895(1,793,181)

29,434,714

Segment liability

4,275,022

2,083,186

6,358,208(215,590)

6,142,618

762,021856,714

1,618,736(68,923)

1,549,812

Total

Other Items
Depreciation

Increase in property, plant,
and equipment and intangible
603,984
708,743
1,312,727
4,793
1,317,521
assets
Notes: 1. Adjustments for segment profit, segment assets, segment liabilities, and other items represent the elimination of intersegment transactions.
2. The negative adjustment of ¥1,793,181 thousand to segment assets includes ¥2,225,508 thousand of corporate assets(mainly the Company’s cash and deposits) and the negative adjustment of ¥1,514,275 thousand to inventories.
3. Segment profit is adjusted with operating profit in the consolidated statement of income.

―16―

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

[Related Information]
Previous Fiscal Year (from April 1, 2021 to March 31, 2022)
1. Information by Product and Service
The description is omitted, as the type of business in the Company Group is exclusively the Medical Devices Business.
2. Regional Information(1) Net sales
The description is omitted, as the same information is disclosed in the Segment Information.
(2) Property, plant, and equipment
The description is omitted, as the same information is disclosed in the Segment Information.
3. Information by Major Customers
The description is omitted, as there are no external customers that account for 10% or more of net sales in the consolidated
statement of income.
Fiscal Year under Review (from April 1, 2022 to March 31, 2023)
1. Information by Product and Service
The description is omitted, as the type of business in the Company Group is exclusively the Medical Devices Business.
2. Regional Information(1) Net sales
The description is omitted, as the same information is disclosed in the Segment Information.
(2) Property, plant, and equipment
The description is omitted, as the same information is disclosed in the Segment Information.
3. Information by Major Customers
The description is omitted, as there are no external customers that account for 10% or more of net sales in the consolidated
statement of income.
[Information on Impairment Losses on Non-current Assets by Reportable Segment]
Previous Fiscal Year (from April 1, 2021 to March 31, 2022)(In thousand yen)Amountreported inconsolidated
Adjustment
financialstatements

Reportable segment
Japan
Impairment
lossesUnited States
162

Other

Total

-

162

Total

-

162

Fiscal Year under Review (from April 1, 2022 to March 31, 2023)

Impairment
lossesUnited States
100

-

Other

Total
100

Total

-

[Amortization of Goodwill and Unamortized Balance by Reportable Segment]
Previous Fiscal Year (from April 1, 2021 to March 31, 2022)
Not applicable.
Fiscal Year under Review (from April 1, 2022 to March 31, 2023)
Not applicable.

―17―

162

(In thousand yen)Amountreported inconsolidated
Adjustment
financialstatements

Reportable segment
Japan

-

100

-

100

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2023

[Information on Gain on Bargain Purchase by Reportable Segment]
Previous Fiscal Year (from April 1, 2021 to March 31, 2022)
Not applicable.
Fiscal Year under Review (from April 1, 2022 to March 31, 2023)
Not applicable.

(Per Share Information)
Previous fiscal year
(From April 1, 2021 to March 31, 2022)

Fiscal year under review(From April 1, 2022 to March 31, 2023)

Net assets per share¥810.59¥880.64

Net income per share¥80.95¥54.03

Not listed, because there are no dilutive
shares.

Not listed, because there are no dilutive
shares.

Items

Diluted net income per share(Note) Shares of the Company's stock remaining in the Trust for Granting Shares to Directors and Corporate Auditors, which are recorded
as treasury stock in shareholders' equity, are included in treasury stock, which is deducted in calculating the average number of shares
outstanding during the fiscal year for the purpose of calculating net income per share.
The average number of such treasury stock during the period deducted in the calculation of net income per share was 76,827 shares in
the previous fiscal year and 108,712 shares in the current fiscal year, and the number of such treasury stock at the end of the period
deducted in the calculation of net assets per share was 76,827 shares in the previous fiscal year and 159,727 shares in the current fiscal
year.
(Significant Subsequent Events)
Not applicable.

―18―