Financial Results Briefing for theFiscal Year Ending March 2024
May 14, 2024
Representative Director and President
Toshiyuki Hironaka
TSE Prime MarketSecurities code：7600
Copyright © Japan Medical Dynamic Marketing, INC. All Rights Reserved.

-Agenda1

Results for the Fiscal Year Ended
March 31, 2024

P. 3２

Forecast for the Fiscal Year Ending
March 31, 2025

P.18

- Consolidated Net Sales

P. 4- Key Assumptions

P.19- Consolidated Income Statement

P. 5- Consolidated Income Statement

P.20

P. 6- Consolidated Sales by Major Products

P.21

P. 7- 2025 (53rd fiscal year)

P.22Japanese Market

P. 8- Changes in Capital Expenditures, etc.

P.23

- Total Sales in Japan

P. 9- Sales in Japan - Joint Replacement

P.10- Sales in Japan – Trauma

P.11- Sales in Japan - Spine

P.12

Prior Year Operating Income- Comparison Analysis- Consolidated Sales by Major Products

Main initiatives for the FYE March

U.S. Market

P.13- Total U.S. Sales

P.14- U.S. Sales - Knee Joint Replacement

P.15- U.S. Sales - Hip Joint Replacement

P.16

Sustainability Initiatives （FYE Mar. 2024）

P.17

Our Product Segments
Hip JointReplacement

Knee JointReplacement

TraumaSpine

Results for the fiscal year ended
March 31, 2024

TSE Prime Market
Securities code：7600
3

FYE Mar. 2024 Results

Consolidated Net Sales（Unit : Millions of yen）

¥23,177M

25,000vs 23/3+8.8%

Three Consecutive Years
with Record Sales

13,004M yen（+5.2％）

20,00015,00010,163M yen（+13.7％）
10,000

Average exchange rate for theperiod: 144.41円/US＄

5,000

020/3

21/3

22/3

23/3

24/3

4

FYE Mar. 2024 Results

Consolidated Income Statement
FY2024（Unit : Millions of yen , ％）Net sales

Ratio tosales

Amount ofchange23,177 100.0+1,869Results

FY2023

YoY change
Ratio ofchange

Results

Ratio tosales+8.8

21,307

100.0

8,415
13,01536.3+1,100+15.0

7,315

34.3

56.2

+1,047+8.8

11,967

56.2

Operating profit

1,746

7.5

▲277

▲13.7

2,024

9.5

Ordinary profit

1,842

8.0

▲200

▲9.82,043

9.6

Net profit*

1,271

5.5

▲152

▲10.7

1,423

6.7

Cost of sales
SG&A* Profit attributable to parent company

5

FYE Mar. 2024 Results
OperatingProfit-277M¥
FY2023

Prior Year Operating Profit Comparison Analysis

The impact of yen depreciation on ODEV product purchases and ODEV SG&A
expenses (-280M¥) and higher SG&A expenses (-570M¥) were not offset by higher
gross profit (+570M¥) due to higher sales.
FYE Mar. 2023 – FYE Mar. 2024
2024 Operating Income: Analysis of Increase/Decrease (Unit : Millions of yen)
Note: Increase in SG&A expenses is shown as a negative figure in the graph.）

YoY +9.46%
yendepreciation

202•

Increase in Development
Costs•

Strengthening New
Product Development

Strengthensales anddevelopment
structure, wage
increases
Sales expansion
in the US –distributor
commission, etc.

FY2024-270Myen

174
Increase in gross profit
due to higher revenue（＋570M yen）

Increase in SG&A
expenses（-570M yen）

6

FYE Mar. 2024 Results

Consolidated Sales by Major Products
FY2024（Unit : Millions of yen , ％）Results

YoY change
Ratio tosales

Amount ofchange

Ratio ofchange

FY2023Results

Ratio tosalesJapan

13,004

56.1

+647

+5.2

12,356

58.0

Joint

4,932

21.3

+194+4.1

4,738

22.2

Trauma4,563

19.7+240

+5.6

4,322

20.3

Spine

3,322

14.3

+136+4.3

3,185

15.0Other390

1.7+35+10.1

354

1.7

13,20857.0+607+4.8

12,60159.1▲204▲ 0.9▲ 40▲ 16.5▲ 244▲ 1.1

U.S *1

10,17343.9+1,222+13.7

8,951

42.0

Joint

10,14143.8+1,230+13.8

8,910

41.8

Spine

320.1

▲8▲ 20.2

400.2

Total

23,177100.0+1,869+8.8

21,307

100.0

Sales of Own Brand Product18,74980.2+1,371+7.9

17,37880.6

US$ *270,448+4,118+6.2

66,330144.41+9.46

Subtotal
Deduction *2*1 Conversion rate (yen)*2 Thousands of dollars *3 Net profit attributable to parent company

134.95

7JapaneseMarket8FYE Mar. 2024 Results

Total Sales in Japan（Unit : Millions of yen）
【After sales deductions】

13,004M yen

15,000vs 23/3 ＋5.2%

12,000

Review
 Sales for the full year grew positively (+5.2%) due
to an increase in the number of cases acquired in
all therapeutic fields, despite the impact ofreimbursement price reductions implemented inApril 2023 and January 2024 (-1.4%).
【Our exhibition booth at a conference】

9,000

6,000

3,000

020/3

21/3

22/3

23/3

24/3

9FYE Mar. 2024 Results

Sales in Japan – Joint Replacement（Unit : Millions of yen）
【Before sales deductions】

4,932M yenvs 23/3 ＋4.1%

6,000

5,000

ODEV Products

Other ProductsReview
Artificial Hip Joints

THA (Total Hip Arthroplasty): Strong“Entrada Hip Stem” and the new “Promontory HipStem” ➡ Increased number of cases acquired“Intellijoint HIP Navigation Systems”: Synergies
BHA (Bone Head Arthroplasty): only slight growth

Growth productNew productEntrada Hip Stem

Promontory Hip Stem

4,000

3,000

Artificial Knee Joints


2,000

1,000020/3

21/3

22/3

23/3

Number of cases of “BKS TriMax" knee joint
prosthesis product increased: double-digit growth

Growth productNew product

BKS TriMax

Balanced Knee System Uni

24/3
10

Sales in Japan - Trauma

FYE Mar. 2024 Results（Unit : Millions of yen）

【Before sales deductions】

4,563M yen
5,000

vs 23/3
ODEV Products＋5.6%

Review
“PHS” (own brand (ODEV) product) and “ASULOCK” (thirdparty product), products for treatment of femoral
neck fractures, with double-digit growth

Other Products

4,000

Growth Products
3,000

2,000
PHS Side Plate

PHSASULOCK1,000

0

20/3

21/3

22/3

23/3

24/3
11

FYE Mar. 2024 Results

Sales in Japan - Spine（Unit : Millions of yen）
【Before sales deductions】

3,322M yen
vs 23/3 ＋4.3%

4,000

ODEV Products

Other Products

3,000

Review“Lince Plate”*(third party product): steadyNew “Lince α Plate”* (third party product): favorable“Vusion Ti 3D cage”; New “Vusion ARC cage”: growth“KMC Balloon Kyphoplasty” (third party product)
Sales grew by executing measures to seize growth
opportunities from the expansion of the BKP (Balloon
Kyphoplasty) market.
*previously called “Lynx Plate” *previously called “Lynxα Plate”

Growth Products
2,000

Lince Plate
1,000020/3

21/3

22/3

23/3

24/3

Linceα Plate

Vusion Ti 3D
cage

Vusion ARC
cage

KMC Balloon Kyphoplasty
12

U.S.
Market
米国市場

13

FYE Mar. 2024 Results（Unit ： Million of dollars）

Total U.S. Sales$70.4M

Review70

 Record sales (US$ basis) Increased customer basecontributed to growth

60

ODEV’s exhibition booth at AAHKS 2023

80

vs 23/3＋６.2%(American Association of Hip and Knee Surgeons Conference)

50403020
10020/3

21/3

22/3

23/3

24/3

10,163M yen（+13.7％）
Average exchange rate for the period：
144.41yen/US＄14

FYE Mar. 2024 Results（Unit ： Million of dollars）$47.4M＋10.7%

vs 23/3

50

U.S. Sales – Knee Joint Replacement
Review“BKS TriMax” , “BKS Revision Knee”:➡ Maintaining Strong GrowthIntroduction of surgical support systems

Enabling Technologies Introduction
Naviswiss Navigation System“Naviswiss Hip”

4030
THINK Surgical Inc. New surgical robot system“TMINI” - Miniature Robotic System
2010020/3

21/3

22/3

23/3

24/3

OurNavigation

Products

Systems

Treatment Value
Enhancement
15

FYE Mar. 2024 Results

U.S. Sales – Hip Joint Replacement
Review（Unit ： Million of dollars）
30$22.7M

Entrada Hip Stem, Alpine Hip Stem ➡ Double-digit
growth.

▲1.8%

Ovation Tribute Stem ➡ Decrease in the number ofcases Existing users of our “M/L taper” type hipstems (Ovation/Tribute) have migrated to “TripleTaper” type hip stem of competitors.

vs 23/3

Enabling Technologies Introduction
Naviswiss navigation system.
“Naviswiss Hip”

20

New Hip Joint Product: “Trivicta Hip Stem”

10••••

0
20/3

21/3

22/3

23/3

24/3

“Triple Taper” type hip stem
FDA regulatory approval obtained
Mar 2024
Start of sales in Q1, FYE Mar 2025
Expect double digit hip productgrowth in FYE Mar 2025

“Trivicta Hip Stem”
Preparing to start sales in the U.S.

16

Sustainability

Sustainability Initiatives (FY2024)

We enhance financial value as well as non-financial value through ESG activities.
Improve patient QOL

Reduction ofEnvironmental Impact

Product development to improve patient
QOL: 2 products in the field of joint
replacementGHG emissions reduction (Scope 1 +Scope 2): 18.3% reduction from theprevious year; reduction of 11.5% frombase year - Mar 2020

Promotion of Diverse
Human ResourcesHigh Quality Responseto Medical Needs

Human Capital Committee established to
improve engagement, succession
planning, and health management
initiatives.

3 minor items for ISO 13485
maintenance audit.
BCP measures: Newly established
Osaka Satellite as a logistics basereduced risk of logistics delays forwestern Japan.

Respect for HumanRights••

Human Rights Policy
Human Rights Due Diligence
Process Development

Promotion of CorporateGovernance••Corporate Governance Code.
Promotion of risk management andcompliance management.

17

Forecast for the fiscal year ending
March 31, 2025

TSE Prime MarketSecurities code：7600
18

FYE Mar. 2025 Forecasts

Key Assumptions

Assumptions for the Forecast of Full-Year Results for the FYE 2025
Exchange Rate（US＄）

Assumed exchange rate
150.00円（Yen/US＄）.

Exchange Rate
Fluctuation Impact

Reimbursement Price
Reductions

For every ¥/US$ weakening,the Impact on Operating Profit
will be approx. 20 million yen

Reimbursement pricereductions of approx. 0.3%.
Impact amount isapproximately 50 million yen
per year.
19

FYE Mar. 2025 Forecasts

Consolidated Income Statement（Unit : Millions of yen , ％）FY2025
Ratio toForecastsales

Amount ofchange

Net sales

25,200100.0+2,022

Cost of sales

36.3

SG&A

9,150
14,200Operating profit

YoY change

FY2024

Ratio ofchange

Results

Ratio tosales+8.7

23,177100.0+734

+8.7

8,415

36.3

56.3

+1,184+9.1

13,015

56.2

1,850

7.3+103+5.9

1,746

7.5

Ordinary profit

1,850

7.3+7+0.4

1,842

8.0Net profit*

1,300

5.2+28+2.2

1,271

5.5

*Profit attributable to parent company

20FYE Mar. 2025 Forecasts

Consolidated Sales by Major Products
FY2025（Unit : Millions of yen , ％）Forecast

YoY change
Ratio tosales

Amount ofchange

Ratio ofchange

FY2024
Results

Ratio tosalesJapan

13,50053.6+495+3.8

13,004

56.1

Joint

5,060

20.1+127+2.6

4,932

21.3

Trauma4,670

18.5+106+2.3

4,563

19.7

Spine

3,540

14.0+217+6.6

3,322

14.3

Other440

1.7+49+12.7

390

1.7

13,71054.4+501+3.8

13,20857.0▲210▲ 0.8▲5+2.7▲ 204 ▲ 0.9

U.S *1

11,70046.4+1,526+15.0

10,173

43.9

Joint11,700

46.4+1,558+15.4

10,141

43.8

Spine00.0▲ 32 ▲ 100.0

320.1

Total

25,200100.0+2,022+8.7

23,177

100.0

Sales of Own Products

20,19079.5+1,441+7.7

18,74980.2

US$ *278,000+7,552+10.7

70,448150.00+5.59

Subtotal
Sales deduction *3*1 Conversion rate (yen)*2 Thousands of dollars *3 Net profit attributable to parent company

144.4121

FYE Mar. 2025 Forecasts Main initiatives for the FY2025 (53rd fiscal year)
Area

Details of Initiatives

Product Portfolio Review.

Accelerate new product development to expand product lineup.

Development

Manufacture Reduction of manufacturing costs by strengthening in-housemanufacturing capacity.
 Cost reduction and risk reduction by strengthening procurement
capabilities.
 Started and expanded production of knee joints made in China.
 Sales expansion through focus on existing growth products andnew products
 Strengthen sales structure (increase capability of sales team).

Sales

 Leveraging new products to attract new customers.
 Strengthen sales network.
• Strengthen collaboration with best existing distributors.
• Sales expansion through new distributor development.
Expanding sales of knee joints made in China.
22

FYE Mar. 2025 Forecasts（Unit: Millions of yen）

Changes in Capital Expenditures, etc.

FYE Mar.
2020
Results

FYE Mar.
2021
Results

FYE Mar.
2022
Results

FYE Mar.
2023
Results

FYE Mar.
2024
Results

FYE Mar.
2025
Forecast

Investment in plantand equipment

1,812

1,586

1,665

1,317

1,916

2,030

Depreciation andamortization
expense*

1,385

1,386

1,420

1,5491,595

1,670

470

459

485

662

874

1,060

R&D expenses* “Depreciation and amortization" in Income Statement is not equal to “Depreciation and amortization"in this foreast because this analysis includes depreciation and amortization included in manufacturing costs.

23

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

Japan Medical Dynamic Marketing, INC. E-MAIL

WEB SITE

Investor Relations Officehttps://www.jmdm.co.jp/en/

ir@jmdm.co.jp

Notes
The forward-looking statements in this document are based on information currently available to us and certain assumptions that weconsider reasonable, and are not intended as a promise by us that they will be realized. Actual results may differ materially due tovarious factors.
Copyright © Japan Medical Dynamic Marketing, INC. All Rights Reserved.