Summary of Consolidated Financial Results for the Second Quarter of the Fiscal
Year Ending March 2023 [Japanese GAAP]

October 31, 2022
Japan Medical Dynamic Marketing, INC.
Listing
TSE
7600
URL http://www.jmdm.co.jp/
Representative Director andRepresentative(Title)(Name) Masao Okawa
President
General Manager, Investor
Contact person in charge (Title)(Name) Shinji Munechika(TEL) 03-3341-6705
Relations Office
Scheduled date of submission of
Scheduled date of commencement
November 14, 2022
the quarterly reportof dividend payment
Preparation of supplementary materials for the quarterly financial results : Yes
Holding of quarterly financial results briefing: Yes (for institutional investors and analysts)
Company nameSecurities code

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for First Half of the Fiscal Year Ending March 2023 (from April 1 to September 30, 2022)(1) Consolidated Operating Results (year to date)(Percentages indicate changes from the first half of the previous year.)
Net income
attributable to owners
Operating profit
Ordinary profitof parent

Net sales
Million yen%

Million yen%

Million yen%

Million yen%

H1 of FYE March 2023
9,989
12.8
927
-12.4
916
-12.1
721
H1 of FYE March 2022
8,858
14.3
1,058
28.4
1,042
29.4
1,003
(Note) Comprehensive income H1 of FYE March 2023 2,558 million yen H1 of FYE March 2022 1,111 million yen(130.2%)(221.0%)
Diluted net income per
Net income per share
share
yen

H1 of FYE March 2023
H1 of FYE March 2022

-28.1
90.6

Yen

27.35
38.03

-

(2) Consolidated Financial Position
Total assets
Q2 of FYE March 2023
FYE March 2022
(Reference) Shareholders’ equity

Net assets

Million yen

Capital adequacy ratio

Million yen

29,42427,342Q2 of FYE March 2023%

23,731
21,491
23,591 million yen

80.2
78.2
FYE March 2022 21,386 million yen

2. Dividends
Annual dividends
End of firstquarteryen

End of second
quarteryen

End of third
quarter

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

End of period

yen

Total

yen

yen

-

12.00

12.00

: None

13.00

13.00

3. Consolidated Financial Forecasts for the Fiscal Year Ending March 2023 (from April 1, 2022 to March 31, 2023)

Net sales
Million yen

Operating profit%

Million yen%

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

2,050
: Yes

%

-20.9

Million yen

1,450

%

-32.1

yen

54.96

*Notes(1) Changes in significant subsidiaries during the quarter under review: None(Changes in specified subsidiaries resulting in changes in scope of consolidation)
Newly included - companies (Company name) - , Excluded - companies (Company name) (2) Application of Accounting Treatment Specific to the Preparation of Quarterly: Yes
Consolidated Financial Statements(3) Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standard:
None2) Changes in accounting policies other than 1)

:

None

3) Changes in accounting estimates

:

None

4) Retrospective restatement

:

None

(4) Number of shares issued (common stock)1) Number of shares issued at the end of theperiod (including treasury shares)
2) Number of treasury shares at the end of theperiod3) Average number of shares during the period(year to date)**Q2 of FYE March2023
Q2 of FYE March2023
H1 of FYE March
2023

26,475,880shares

FYE March 2022

26,475,880shares

92,207shares

FYE March 2022

92,179shares

26,383,693shares

H1 of FYE March
2022

26,383,792sharesThis summary of quarterly financial results is not subject to audit by certified public accountants or auditing firms.
Explanation of appropriate use of earnings forecasts and other special notes

These forward-looking statements such as financial forecasts contained in this report are based on information currently available
to the Company and certain assumptions deemed to be reasonable by the Company, and do not mean that 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 3 of the attached document
for the assumptions underlying the forecasts, notes on using the forecasts, etc.
The Company will hold a financial results briefing for institutional investors and analysts on November 11, 2022. 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.

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

 Table of Contents of Attachment
1. Qualitative Information on Quarterly Financial Results ........................................................................................................................ 2(1) Explanation on Operating Results .................................................................................................................................................... 2(2) Explanation on Financial Position .................................................................................................................................................... 2(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements ............................................................. 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 of Comprehensive 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(Additional Information).................................................................................................................................................................... 8(Segment Information, Etc.) .............................................................................................................................................................. 8
3. Other ...................................................................................................................................................................................................... 9
Sales....................................................................................................................................................................................................... 9-1-

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

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

During the first half of the fiscal year ending March 31, 2023 of the Group, net sales were ¥9,989 million (up ¥1,131 million, or
12.8% year on year), operating profit was ¥927 million (down ¥131 million, or 12.4% year on year), ordinary profit was ¥916
million (down ¥126 million, or 12.1% year on year), and net income attributable to owners of parent was ¥721 million (down ¥281
million, or 28.1% year on year).
In Japan, despite a decline in the case unit prices due to the lowering of reimbursement prices, the number of acquired cases grewcompared with the same quarter a year ago, and net sales were ¥5,805 million (up ¥339 million, or 6.2% year on year). In the UnitedStates, net sales to external customers (US dollars) increased 1.9% compared with the same quarter a year ago. This was because
the number of cases acquired increased due to the contribution of the customer base that continued to expand from last year
compared with the same quarter a year ago, and after translation into yen, net sales increased 23.3% to ¥4,184 million due to theimpact of the yen’s depreciation.
In the artificial joints category, combined total net sales in Japan and the United States increased 15.7% (3.7% in Japan and 23.3%
in the United States) year on year to ¥6,393 million. This was because the number of acquired cases in Japan increased despite
considerable lowering of the reimbursement prices, and sales in the United States grew substantially (after translation into yen) due
to the yen’s sharp depreciation. (Reference: The exchange rate for U.S. sales was 110.21 yen to the U.S. dollar in the same quartera year ago and was 133.47 yen to the U.S. dollar in the quarter under review.)
In the category of osteosynthesis materials, net sales in Japan increased 8.5% year on year to ¥1,922 million, mainly due to steadysales of ASULOCK and Prima Hip Screw.
In the category of spinal fixation devices, sales of the KMC Kyphoplasty System continued to be steady in Japan and sales ofPisces Spinal System were steady, resulting in a 9.7% increase in total net sales in Japan and the United States to ¥1,614 million.
As for cost of sales, the cost of sales ratio was 33.7% (32.2% in the same quarter a year ago) mainly due to the yen’s depreciationand lowering of reimbursement prices in Japan.
Selling, general, and administrative expenses totaled ¥5,691 million (up 15.1% year on year). This was due to an increase inpersonnel expenses as a result of strengthening of the systems in Japan, an increase in commission expenses (commissions androyalties) in the wake of higher sales in the United States, and an increase in expenses (after translation into yen) in the UnitedStates. affected by the depreciation of the yen. In addition, the ratio of selling, general, and administrative expenses to net sales
grew to 57.0% (55.8% in the same quarter a year ago).
Despite an increase in net sales, operating profit was ¥927 million (down 12.4% 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 yen’s depreciation.
Ordinary profit was ¥916 million (down 12.1% year on year) as a result of recording non-operating income of ¥39 million,
including tax refund of ¥14 million and insurance claim income of ¥13 million, and recording non-operating expenses of ¥49 million,
including share of loss of entities accounted for using equity method of ¥26 million.
As for extraordinary income and losses, ¥25 million in compensation income and ¥12 million in reversal of provision for loss on
business were recorded under extraordinary income of ¥37 million, and ¥21 million in loss on retirement of non-current assets suchas medical tools was recorded under extraordinary losses.
Net income attributable to owners of parent decreased 28.1% year on year to ¥721 million, due to the above results and theposting of ¥303 million in gain on forgiveness of debts as extraordinary income in the previous fiscal year.
Segment results are as follows.
1) JapanNet sales were ¥5,805 million (up 6.2% year on year) and operating profit was ¥463 million (down 30.6% year on year).
2) United States
Net sales were ¥5,889 million (up 12.6% year on year) and operating profit was ¥389 million (down 8.6% year on year).

(2) Explanation on Financial Position

Total assets at the end of the quarter under review increased ¥2,081 million from the end of the previous fiscal year to ¥29,424
million. The main increases were in merchandise and finished goods by ¥1,258 million and raw materials and supplies by ¥774
million.
Total liabilities decreased by ¥158 million from the end of the previous fiscal year to ¥5,692 million. The main decrease waslong-term borrowings by ¥231 million.
Net interest-bearing debts, which are calculated by deducting cash and deposits from interest-bearing debts (the total amount ofshort-term borrowings, long-term borrowings, and lease liabilities), amounted to minus ¥985 million at the end of the quarter underreview.
Total net assets increased ¥2,240 million from the end of the previous fiscal year to ¥23,731 million. The main increases were inforeign currency translation adjustment by ¥1,661 million and in retained earnings by ¥403 million.

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

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

The consolidated financial forecasts for the fiscal year ending March 2023 announced on April 28, 2022 have been revised. For
details, please refer to the "Notice Concerning Difference between Consolidated Financial Forecasts and Financial Results for theSecond Quarter of the Fiscal Year Ending March 2023 and Revision of Consolidated Financial Forecasts for the Fiscal Year Ending
March 2023" announced today (October 31, 2022).

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

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

The quarter under review(September 30, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process

2,590,849

2,617,844

5,212,555

4,638,552

8,186,658
497,823

9,445,221
661,839

Raw materials and supplies
Other

1,410,927
149,2112,185,158
480,029

Allowance for doubtful accounts-1,386-1,16518,046,638

20,027,480

728,450

811,511

Machinery, equipment, and vehicles (net)
Tools, furniture, and fixtures (net)350,978
4,691,605

365,946
4,764,748

Land
Other

1,953,479
48,173

1,959,101
10,214

Total property, plant, and equipment

7,772,687

7,911,522

291,960

298,951-

36,202

174,887

159,767

971,990
84,558907,61082,8151,231,435

1,186,395

9,296,083

9,396,868

27,342,722

29,424,349

Total current assets
Non-current assets
Property, plant, and equipment
Buildings and structures (net)

Intangible assets
Investments and other assets
Investment securities
Investments in capital of subsidiaries andassociates
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets-4-Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 2023

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

The quarter under review(September 30, 2022)

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

785,671557,046

1,049,758
588,406

Lease liabilities
Income taxes payable

33,163
266,440

21,495
206,385

Accrued expenses
Accounts payable - other

512,569
189,283

511,653
144,553

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on business
Other

194,015

166,895

65,20021,83165,000231,291

42,950117,166

Total current liabilities

2,899,680

2,871,095

Non-current liabilities
Long-term borrowings

1,247,662

1,016,179

10,875
1,023,546

5,976
1,052,863

88,322

95,180

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

29,201

29,357Long-term deposits received
Deferred tax liabilities

8,000
544,3108,500
613,622

Total non-current liabilities

2,951,919

2,821,679

5,851,600

5,692,775

Shareholders' equity
Share capital

3,001,929

3,001,929

Capital surplus
Retained earnings

2,587,029
14,550,073

2,587,029
14,954,026

Total liabilities
Net assets

Treasury shares
Total shareholders' equity-111,940-111,981

20,027,090

20,431,002

1,351,922

132,578
3,013,204

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-

7,429

14,402

1,359,352

3,160,185

104,678

140,385

21,491,121

23,731,573

27,342,722

29,424,349

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

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly consolidated statement of income
The first half under review

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Freight and packing costs
Promotion expenses
Advertising expenses
Salaries and allowances
Retirement benefit expenses
Legal welfare expenses
Welfare expenses
Provision of allowance for doubtful accounts
Travel and transportation expenses
Depreciation
Taxes and dues
Research and development expenses
Commission expenses
Other
Total selling, general, and administrative expenses
Operating profit
Non-operating income
Interest income
Foreign exchange gains
Commission income
Insurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodCommission for syndicated loans
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Reversal of provision for loss on business
Compensation income
Gain on forgiveness of debts
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Net income before income taxes and others
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

The first half a year ago(From April 1 to September 30,
2021)
8,858,500
2,856,569
6,001,931(In thousand yen)
The first half under review(From April 1 to September 30,
2022)
9,989,631
3,370,648
6,618,983

175,179
54,04132,284
1,619,998
51,105
149,501
102,781-83
63,927597,522
81,930237,573
1,132,091
645,873
4,943,728
1,058,203

208,687
53,80035,726
1,796,693
49,982
161,265
133,433-221
110,550
682,900
71,407
293,237
1,409,215
685,253
5,691,934
927,049

64
117
6,018
5,635
11,83449
2,844
13,22023,17439,28913,905-

10,318980

3,393

26,145

3,160
6,660
27,1191,042,918

4,161
8,106
49,712916,626

303,474
303,474

12,79725,00037,797

20,111
20,111
1,326,281
304,484
10,294
314,778
1,011,502
8,133
1,003,369

21,824
21,824
932,599
228,757-25,129
203,627
728,971
7,492
721,479-6-

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

Quarterly Consolidated Statement of Comprehensive Income
The first half under review

Net income

The first half a year ago(From April 1 to September 30,
2021)
1,011,502(In thousand yen)
The first half under review(From April 1 to September 30,
2022)
728,971-2,788132,578

94,518
7,981

1,689,496
6,972

Total accumulated other comprehensive income
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

99,711

1,829,047

1,111,214

2,558,019

1,101,370

2,522,312

9,843

35,706

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

(3) Notes to Quarterly Consolidated Financial Statements(Note on Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements)
Tax expenses were calculated by reasonably estimating an effective tax rate after application of tax effect accounting to net
income before income taxes and others for the fiscal year including the quarter under review and multiplying net income before
income taxes and others by the estimated effective tax rate.
(Additional Information)(Impact of COVID-19)
The accounting estimates for the first half under review are reasonably calculated based on the information available at thetime of preparing the consolidated quarterly financial statements. However, there are uncertainties regarding the future spread of
COVID-19 and the timing of its resolution. If the infection status of COVID-19 as well as economic and other environments
deviate from the current assumptions, the Group’s business performance and financial position may be affected.
For reference, there are no significant changes from the assumptions made as of the end of the previous fiscal year.
(Segment Information, Etc.)
I. First Half of the Fiscal Year Ended March 2022 (from April 1 to September 30, 2021)
1. Information on the amounts of sales and profits for each reportable segment and information on the breakdown of revenue(In thousand yen)Amount recordedon quarterly
consolidated
statement ofincome(Note 2)

Reportable segment
Japan
Net sales
Revenue from contracts withcustomers
Net sales to external customers
Inter-segment net sales or transfers
Total
Segment profit

United States

Total

5,466,092

3,392,408

8,858,500

5,466,092

3,392,408-

1,838,626

5,466,092
667,721

Adjustment(Note 1)-

8,858,500

8,858,500-

8,858,500

1,838,626-1,838,626-

5,231,035

10,697,127-1,838,626

8,858,500

425,896

1,093,618-35,415

1,058,203

Notes: 1. Adjustments for segment profit include ¥35,415,000 in elimination of inter-segment transactions.
2. Segment profit was adjusted with operating profit in the quarterly consolidated statement of income.

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

-8-Japan Medical Dynamic Marketing, INC (7600) Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 2023

II. First Half of the Fiscal Year Ending March 2023 (from April 1 to September 30, 2022)
1. Information on the amounts of sales and profits for each reportable segment and information on the breakdown of revenue(In thousand yen)Amount recordedon quarterly
consolidated
statement ofincome(Note 2)

Reportable segment
Japan
Net sales
Revenue from contracts withcustomers
Net sales to external customers

Segment profit

Adjustment(Note 1)

Total

5,805,241

4,184,390

9,989,631-

9,989,631

5,805,241

4,184,390

9,989,631-

9,989,631-

1,704,983

1,704,983-1,704,983-

5,805,241

5,889,373

11,694,614-1,704,983

9,989,631

463,447

389,418

852,866

74,183927,049

Inter-segment net sales or transfers
Total

United States

Notes: 1. Adjustments for segment profit include ¥74,183,000 in elimination of inter-segment transactions.
2. Segment profit was adjusted with operating profit in the quarterly consolidated statement of income.
2. Information on impairment losses on non-current assets and goodwill by reportable segment
Not applicable.

3. Other
Sales
Sales for the first half under review by segment are as follows.
The first half under review(From April 1 to September 30,
2022)
Amount (in thousand yen)

Name and item of each segment
Japan

Medical devices

Compared with the firsthalf a year ago(%)

5,921,942

105.8

Artificial joints

2,226,200103.7

Osteosynthesis materials

1,922,399

108.5

Spinal fixation devices

1,596,866

109.5

Other

176,475

80.4

United States

4,184,390

123.3

4,167,225

123.3

17,164

128.7

Artificial joints
Spinal fixation devices
Subtotal (A)10,106,332

112.4

Sales deduction (B)-116,700-

Total (A) + (B)9,989,631

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

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