Summary of Consolidated Financial Results for the First Quarter of the Fiscal
Year Ending March 2025 [Japanese GAAP]
July 30, 2024
Company name: Japan Medical Dynamic Marketing, INC.
Stock exchange listing: Tokyo
Code number: 7600
URL: https://www.jmdm.co.jp/
Representative: Toshiyuki Hironaka
Representative Director and President
Contact: Shinji Munechika
General Manager, Investor Relations Office
Phone: +81-3-3341-6705
Scheduled date of filing quarterly securities report:
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results:
Schedule of quarterly financial results briefing session:(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended
June 30, 2024
6,052
12.0
366
5.7
367
9.0
273
54.3
June 30, 2023
5,402
7.5
346
(30.5)
337(30.2)
177(47.3)(Note) Comprehensive income:Three months ended June 30, 2024:¥
1,199 million [(0.8) %]
Three months ended June 30, 2023:¥
1,209 million [(20.7) %]Basic earnings
per share
Three months ended
June 30, 2024
June 30, 2023

Diluted earnings per
share
Yen

Yen

10.39
6.74

-

(2) Consolidated Financial Position
Total assets
As ofJune 30, 2024
March 31, 2024
(Reference) Equity:

Net assets

Millions of yen

Capital adequacy ratio

Millions of yen

31,96031,485

As of June 30, 2024:
As of March 31, 2024:¥¥%

26,43225,603
26,323 million
25,511 million

82.4
81.0

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2024

-

0.00

-

14.00

14.00

Fiscal year ending March 31, 2025

0.00

-

15.00

15.00

Fiscal year ending March 31, 2025
(Forecast)(Note) Revision to the forecast for dividends announced most recently:NoYear-endTotal

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentMillions of yen% Millions of yen% Millions of yen

Six months ending
11,8508.2550 (11.0)
September 30, 2024
Full year
25,200
8.7
1,850
5.9
(Note) Revision to the financial results forecast announced most recently:% Millions of yen

%

Yen

550

(13.1)

400

11.2

15.20

1,850
No

0.4

1,300

2.2

49.39

* Notes:(1) Changes in significant subsidiaries during the three months ended June 30, 2024
(changes in specified subsidiaries resulting in changes in scope of consolidation):(Company name:New
Exclusion:(Company name:(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

)
)
Yes

(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2024:
26,475,880 shares
March 31, 2024:
26,475,880 shares
2) Number of treasury shares at the end of the period:
June 30, 2024:
141,346 shares
March 31, 2024:
141,318 shares
3) Average number of shares outstanding during the period:
Three months ended June 30, 2024:
Three months ended June 30, 2023:**

26,334,548 shares
26,300,759 shares

Review of the Japanese-language originals of the attached consolidated quarterly financial： Nonestatements by certified public accountants or an audit firm
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 the Company 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 First Quarter of the Fiscal Year Ending March 2025

○ Table of Contents of Attachment

1. Qualitative Information on Quarterly Financial Results ............................................................................. 2(1) Explanation on Operating Results.........................................................................................................2(2) Explanation on Financial Position ....................................................................................................... 3(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements ................ 3
2. Quarterly Consolidated Financial Statements and Main Notes ................................................................... 4(1) Quarterly Consolidated Balance Sheet ................................................................................................ 4(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income ....................................................................................................................... 6(3) Notes to Quarterly Consolidated Financial Statements ....................................................................... 8(Note on Going Concern Assumption) .............................................................................................. 8(Notes on Substantial Changes in the Amount of Shareholders’ Equity) ............................................ 8(Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated
Financial Statements).......................................................................................................................... 8(Segment Information, etc.) .............................................................................................................. 8(Notes on Consolidated Statement of Cash Flows) ............................................................................. 9
3. Other ......................................................................................................................................................... 10
Sales ........................................................................................................................................................ 10-1-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the first quarter of the fiscal year ending March 31, 2025, of the Group, net sales were ¥6,052 million (up ¥650 million,or 12.0% year on year), operating profit came to ¥366 million (up ¥19 million, or 5.7% year on year), ordinary profit was ¥367
million (up ¥30 million, or 9.0% year on year), and net income attributable to owners of parent amounted to ¥273 million (up ¥96
million, or 54.3% year on year). Net sales of our own products accounted for 81.2% of consolidated net sales (80.1% in the same
three months a year ago).
In Japan, net sales were ¥3,184 million (up ¥128 million, or 4.2%), after partial deduction of promotional expenses in accordancewith Accounting Standard for Revenue Recognition. In the United States, net sales to external customers increased to $18.324
million (up $1.328 million or 7.8% year on year), and after translation into yen, net sales were ¥2,868 million (up ¥521 million, or
22.2% year on year) due to the impact of the yen’s depreciation. (Reference: The exchange rate for U.S. sales was 138.11 yen to
the U.S. dollar in the same quarter a year ago and was 156.55 yen to the U.S. dollar in the quarter under review.)
Sales by product segment are as follows.
For the joint category in Japan, in Bipolar Hip Arthroplasty (BHA), the number of acquired cases of the artificial hip joint productEntrada Hip Stem with hydroxyapatite (HA) coating and the new product Promontory Hip Stem increased, resulting in higher
overall BHA sales. On the other hand, overall sales of Total Hip Arthroplasty (THA) decreased due to the fall in the number ofacquired cases of THA. In addition, the number of acquired cases of Total Knee Arthroplasty (TKA) decreased, and overall TKA
sales saw a slight decline. As a result, net sales in Japan for this category were ¥1,198 million (up 2.3% year on year).
For the joint category in the United States, the number of acquired cases of Total Knee Arthroplasty (TKA) for artificial knee
joint products such as BKS TriMax and BKS Revision Knee increased as the customer base expanded, resulting in strong sales withdouble-digit growth. The number of acquired cases of Alpine Hip Stem and Entrada Hip Stem in artificial hip joint products also
increased, and sales began to rise. As a result, net sales in the United States for this category were $18.288 million (up 8.0% year
on year). After translation into yen, net sales were ¥2,863 million (up 22.4% year on year) due to the impact of the yen’s depreciation.
In the category of Trauma, the number of acquired cases of Prima Hip Screw, a treatment material for femoral neck fractures,increased and continued double-digit growth. As a result, net sales in Japan were ¥1,079 million (up 4.0% year on year).
In the spine category, the number of acquired cases of KMC Kyphoplasty System, Vusion Ti3D ARC Cage, and Lince Plate
increased, leading to higher sales in Japan. In particular, the number of acquired cases of KMC Kyphoplasty System increased
following the expansion of the Balloon Kyphoplasty market. As a result of these factors, total net sales for this category in Japanand the United States were ¥874 million (up 6.5% year on year).
Cost of sales increased due to higher procurement costs resulting from inflation and a weaker yen. Moreover, the cost of sales
ratio increased to 36.5% (from 35.4% in the same quarter a year ago) mainly due to the impact of the lowering of reimbursement
prices in Japan. For selling, general, and administrative expenses, there were increases in commission expenses (commissions androyalties) due to increased U.S. sales, research and development expenses, and personnel expenses due to wage increases. Due tothe weaker yen, expenses in the United States after translation into yen also increased, but it was partly offset by our efforts to
reduce expenses. As a result, selling, general, and administrative expenses totaled ¥3,475 million (up 10.6% year on year), and theratio of selling, general and administrative expenses to net sales was 57.4% (58.2% in the same quarter a year ago).
Operating profit was ¥366 million (up 5.7% year on year), as the increase in net sales absorbed the rise in the cost of sales ratio
and the increase in selling, general, and administrative expenses.
Ordinary profit was ¥367 million (up 9.0% year on year) as a result of recording non-operating income of ¥27 million, including
foreign exchange gains of ¥23 million, and recording non-operating expenses of ¥25 million, including interest expenses of ¥9million and ¥8 million in share of loss of a joint venture in China, Changzhou Waston Ortho Medical Appliance Co., Limited,accounted for using the equity method.

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Japan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

As for extraordinary income and losses, ¥10 million was recorded under extraordinary losses, consisting of loss on retirement of
non-current assets such as medical tools.
As a result, net income attributable to owners of parent amounted to ¥273 million (up 54.3% year on year).
Segment results are as follows.
1) JapanNet sales were ¥3,184 million (up 4.2% year on year) and operating profit was ¥156 million (down 33.6% year on year).
2) United States
Net sales were ¥3,753 million (up 17.9% year on year) and operating profit was ¥193 million (up 252.5% year on year).

(2) Explanation of Financial Position
Total assets at the end of the quarter under review increased ¥474 million from the end of the previous fiscal year to ¥31,960
million. The main factors for increases were an increase in raw materials and supplies of ¥867 million and merchandise and finishedgoods of ¥143 million. The main factors for decreases were a decrease of cash and deposits of ¥486 million and notes and accounts
receivable - trade, and contract assets of ¥331 million.
Total liabilities decreased ¥354 million from the end of the previous fiscal year to ¥5,527 million. The main factors for decreases
were a decrease in notes and accounts payable - trade of ¥260 million and a decrease in provision for bonuses of ¥187 million,
while the main factors for increases were an increase in accrued expenses of ¥110 million and short-term borrowings of ¥104 million.
Total net assets increased ¥829 million from the end of the previous fiscal year to ¥26,432 million. The main factor for increases
was an increase in foreign currency translation adjustment of ¥825 million.

(3) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
There is no change to the consolidated financial forecast for the current fiscal year announced on April 30, 2024.

-3-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

As of June 30, 2024

2,321,552

1,835,085

5,915,467

5,583,881

10,259,039
919,068
1,914,371
257,347(3,966)

10,402,830
837,7432,782,106
409,775(5,656)

21,582,880

21,845,766

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Other

876,633
354,459
4,935,249
1,960,584
193,692

896,277
355,847
5,016,048
1,963,029
325,073

Total property, plant and equipment

8,320,618

8,556,275

Intangible assets
Investments and other assets
Investments in capital of subsidiaries andassociates
Deferred tax assets
Other
Allowance for doubtful accounts

219,262

208,752

157,654

188,805

1,136,171
69,272(1)

1,093,174
67,851(1)

Total investments and other assets
Total non-current assets
Total assets-4-

1,363,097

1,349,830

9,902,97810,114,858

31,485,859

31,960,625

Japan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

(Thousands of yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Lease liabilities
Income taxes payable
Accrued expenses
Accounts payable - other
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other

As of June 30, 2024

1,403,276
1,162,382
37,600
192,482551,182
235,050
237,310

1,143,025
1,266,579
40,010163,503
662,025
209,300
49,73427,252

7,569

183,973

177,676

4,030,510

3,719,424

259,820
34,6291,424,964

195,506
26,586
1,449,212

80,57185,36531,56020,00031,66820,0001,851,545

1,808,338

Total liabilities

5,882,056

5,527,763

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

3,001,929
2,587,237
16,583,962(165,556)

3,001,929
2,587,237
16,487,062(165,575)

22,007,572

21,910,653

47,0153,614,304(157,570)

125,427
4,440,298(152,439)

3,503,749

4,413,286

92,480108,922

25,603,802

26,432,862

31,485,859

31,960,625

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Retirement benefit liability
Provision for share awards for directors (and otherofficers)
Asset retirement obligations
Long-term deposits received
Total non-current liabilities

Total shareholders' equity
Accumulated other comprehensive income
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-Japan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)(Thousands of yen)
For the three months
ended June 30, 2023

For the three months
ended June 30, 2024

Net sales
Cost of sales

5,402,640
1,913,737

6,052,877
2,210,793

Gross profit

3,488,902

3,842,084

112,639
77,31820,562
963,882
26,54780,65571,780(81)
78,757
330,961
33,512
182,945799,377
363,653

108,375
46,83025,293
1,014,283
33,121
83,40884,325
1,689
80,379363,11040,070236,427
942,580
415,904

3,142,513

3,475,803

Operating profit

346,388366,281Non-operating income
Interest income
Foreign exchange gains
Insurance claim income
Other

25
10,946
6,911

48
23,71366
3,371

17,883

27,200

5,121

9,511

16,310

8,163

2,086
3,149

2,500
5,339

26,66825,515

Ordinary profit

337,603367,966

Extraordinary losses
Loss on retirement of non-current assets
Settlement-related costs

9,410
75,00010,856-

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

Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodCommission for syndicated loans
Other
Total non-operating expenses

84,41010,856

Profit before income taxes

Total extraordinary losses

253,193

357,110

Income taxes - current
Income taxes - deferred

66,751
6,743

69,771
6,275

Total income taxes

73,49476,046

Profit179,698

281,063

2,427

7,520

177,271273,543

Profit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

Quarterly Consolidated Statements of Comprehensive Income (For the three months)(Thousands of yen)
For the three months
ended June 30, 2023
ProfitOther comprehensive income
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

For the three months
ended June 30, 2024

179,698

281,063

103,515923,237
2,882

78,412
834,9165,130

1,029,635

918,458

Comprehensive income

1,209,333

1,199,522

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

1,191,488

1,183,080

17,845

16,442

Total other comprehensive income-7-Japan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

(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 fiscal year including the quarter under review and multiplying net income before income
taxes and others by the estimated effective tax rate.

(Segment Information, Etc.)
I. First Quarter of the Fiscal Year Ended March 2024 (from April 1 to June 30, 2023)
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

United States

Total

Adjustment(Note 1)

Amount recordedon quarterly
consolidated
statement ofincome(Note 2)

Net sales
Revenue from contracts withcustomers

3,055,337

2,347,303

5,402,640－

5,402,640

Net sales to external customers

3,055,337

2,347,303

5,402,640－

5,402,640－

835,458

835,458(835,458)－

3,055,337

3,182,762

6,238,099(835,458)

5,402,640

236,134

54,818290,953

55,434346,388

Inter-segment net sales ortransfers
Total
Segment profit
Notes:

1. Adjustments for segment profit include ¥55,434 thousand in elimination of inter-segment transactions.
2. Segment profit was adjusted with operating profit in the quarterly consolidated statement of income.
3. For revenue from contracts with customers in “Japan,” part of the promotion expenses is deducted by applying the
Accounting Standard for Revenue Recognition.

2. Information on impairment losses on non-current assets and goodwill by reportable segment
Not applicable.

-8-Japan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

II. First Quarter of the Fiscal Year Ending March 2025 (from April 1 to June 30, 2024)
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

United States

Total

Adjustment(Note 1)

Amount recordedon quarterly
consolidated
statement ofincome(Note 2)

Net sales
Revenue from contracts withcustomers

3,184,194

2,868,683

6,052,877－

6,052,877

Net sales to external customers

3,184,194

2,868,683

6,052,877－

6,052,877－

885,198

885,198(885,198)－

3,184,194

3,753,881

6,938,076(885,198)

6,052,877

156,841

193,226

350,068

16,212366,281Inter-segment net sales ortransfers
Total
Segment profit
Notes:

1. Adjustments for segment profit include ¥16,212 thousand in elimination of inter-segment transactions.
2. Segment profit was adjusted with operating profit in the quarterly consolidated statement of income.
3. For revenue from contracts with customers in “Japan,” part of the promotion expenses is deducted by applying the
Accounting Standard for Revenue Recognition.

2. Information on impairment losses on non-current assets and goodwill by reportable segment
Not applicable.

(Notes on Consolidated Statement of Cash Flows)
Quarterly consolidated statement of cash flows has not been prepared for the three months ended June 30, 2024. Depreciation(including amortization related to intangible assets) for the three months ended June 30, 2024, is as follows.

Depreciation-9-

For the three months
ended June 30, 2023

For the three months
ended June 30, 2024

¥388,277 thousand¥423,336 thousandJapan Medical Dynamic Marketing, INC. (7600) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025

3. Other
Sales
Sales for the first quarter under review by segment are as follows.
Name and item of each segment

The first quarter under review(from April 1 to June 30, 2024)

Compared with thesame quarter a year ago

Amount (in thousand yen)

(%)

Japan

Medical devices

3,184,194

104.2

Joint

1,198,156

102.3

Trauma1,079,492

104.0

Spine

868,954

106.9

Other

92,143

100.2

Subtotal

3,238,746

104.0

Sales deduction(54,552)－

United States

2,868,683

122.2

Joint

2,863,047

122.4

Spine

5,635

65.8

Total

6,052,877

112.0

Ratio (%)
Sales ratio of our own products
Notes:

Change (%)
81.2

1.1

1. Inter-segment transactions are offset and eliminated.
2. In Japan, a portion of sales promotion expenses are deducted from net sales due to the application of the “AccountingStandard for Revenue Recognition.”
3. Sales results by item in Japan are shown as a lump-sum amount of such sales deductions, as a reasonable proration ofsuch sales deductions is not possible.

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