Summary of Consolidated Financial Results for
the Fiscal Year Ended March 2024 [Japanese GAAP]
April 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 Annual General Meeting of Shareholders: June 21, 2024
Scheduled date of commencing dividend payments: June 24, 2024
Scheduled date of filing annual securities report: June 25, 2024
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 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%
Fiscal year ended
March 31, 2024
23,1778.8
1,746(13.7)
1,842
(9.8)
1,271
(10.7)March 31, 2023
21,30711.0
2,024(23.9)
2,043(21.1)
1,423(33.3)(Note) Comprehensive income:Fiscal year ended March 31, 2024:¥
2,692 million [21.9%]
Fiscal year ended March 31, 2023:¥
2,209 million [(28.0) %]Basic earnings per Diluted earnings per Rate of return on
share
share
equityYen
Fiscal year ended
March 31, 2024
48.31
March 31, 2023
54.03
(Reference) Equity in earnings (losses) of affiliated companies:

Yen

Ordinary profit tototal assets ratio

%

%

5.2
6.4
Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:

6.1
7.2
¥
¥

Operating profit to
net sales ratio
%

7.5
9.5
(65) million(63) million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Net assets

Millions of yen

Millions of yen

31,48529,434As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio¥¥

25,60323,29225,511 million
23,161 million

%

81.0
78.7

Net assets per shareYen

968.74880.64(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

2,104
2,186

(1,804)(1,481)

(840)
(514)

2,321
2,804

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Fiscal year ended

Yen

Yen

Yen

Yen

March 31, 2023

-

0.00

-

13.00

13.00

March 31, 2024

-

0.00

-

14.00

14.00

-

0.00

-

15.00

15.00

Payoutratio

Total
dividends(consolidated)

Yen Millions of yen

Dividends
to netassets(consolidated)

%

%

343

24.1

1.5

370

29.0

1.5

Fiscal year ending
March 31, 2025

30.4

(Forecast)
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 per
Net sales
Operating profit
Ordinary profit
to owners of parent
share
Six months ending
September 30, 2024
Full year

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

11,8508.2

550(11.0)

550(13.1)

400

11.2

15.20

25,200

8.7

1,850

5.9

1,850

0.4

1,300

2.2

49.39

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(Company name:New)
Exclusion:(Company name:)(2) 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(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024:
26,475,880 shares
March 31, 2023:
26,475,880 shares
2) Number of treasury shares at the end of the period:
March 31, 2024:
141,318 shares
March 31, 2023:
175,107 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2024:
Fiscal Year ended March 31, 2023:

26,322,392 shares
26,351,799 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Millions of yen%

13,004
12,356

5.2
1.9

Millions of yen

Ordinary profit
%

1,093
1,231

Millions of yen(11.2)(33.2)

1,097
1,285

Net income%(14.6)(33.6)

Millions of yen

674
732

%

(7.9)
(42.8)

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2024
March 31, 2023

Yen

Yen

25.64
27.80

-

(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:※※

Net assets

Millions of yen

Millions of yen

20,481
20,531

As of March 31, 2024:
As of March 31, 2023:¥¥

Capital adequacy ratio

16,640
16,256
16,640 million
16,256 million

Net assets per share

%

81.2
79.2

This 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

Yen

631.91618.09• 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“1. Overview of Operating Results, etc. (4) Future Outlook” on page 4 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 May 14, 2024. 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 Financial Results for the Fiscal Year Ended March 2024

 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 Fiscal Year under Review ................................................................................................. 3(3) Overview of Cash Flows for the Fiscal Year under Review ...................................................................................... 4(4) Future Outlook ............................................................................................................................................................ 4
2. Basic Approach to the Selection of Accounting Standards ............................................................................................. 6
3. Consolidated Financial Statements and Major Notes ........................................................................................................ 7(1) Consolidated Balance Sheet ........................................................................................................................................ 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...................................... 9
Consolidated Statement of Income ............................................................................................................................... 9
Consolidated Statement of Comprehensive Income ...................................................................................................11(3) Consolidated Statement of Changes in Equity ......................................................................................................... 12(4) Consolidated Statement of Cash Flows ..................................................................................................................... 14(5) Notes to Consolidated Financial Statements ............................................................................................................. 16(Note on Going Concern Assumption) ........................................................................................................................ 16(Changes in Accounting Policies) ............................................................................................................................. 16(Segment Information, etc.) ...................................................................................................................................... 16(Per Share Information) ............................................................................................................................................ 19(Significant Subsequent Events) ................................................................................................................................. 19-1-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2024 of the Group, net sales were ¥23,177 million (up ¥1,869 million, or 8.8% year onyear), operating profit was ¥1,746 million (down ¥277 million, or 13.7% year on year), ordinary profit came to ¥1,842 million(down ¥200 million, or 9.8% year on year), and net income attributable to owners of parent was ¥1,2671million (down ¥152 million,or 10.7% year on year). Net sales of our own products accounted for 80.2% of consolidated net sales (80.6% in the previous fiscal
year).
In Japan, net sales were ¥13,004 million (up ¥647 million, or 5.2% year on year), after partial deduction of promotional expenses
in accordance with Accounting Standard for Revenue Recognition, as a result of an increase in the number of acquired cases, despite
the impact of the lowering of reimbursement prices implemented in April 2023 and January 2024.
In the United States, the new customer base that we developed last year contributed to growth, and there was an increase in thenumber of cases of artificial knee joint products acquired. As a result, net sales to external customers in the United States increased
to $70.448 million (up $4.118 million, or 6.2% year on year), and after translation into yen, net sales were ¥10,173 million (up¥1,222 million, or 13.7% year on year) due to the impact of the yen’s depreciation. (Reference: The exchange rate for U.S. sales
was 134.95 yen to the U.S. dollar in the previous fiscal year and was 144.41 yen to the U.S. dollar in the fiscal year under review.)
For the artificial joint category in Japan, the number of acquired cases of artificial hip prosthesis product “Entrada Hip Stem”
with hydroxyapatite (HA) coating increased, and overall sales of hip replacement arthroplasty (THA) were strong. On the other
hand, in artificial head bone replacement operations (BHA), while the number of acquired cases of “Entrada Hip Stem” and a new
product “Promontory Hip Stem” increased, overall BHA sales only saw a slight increase due to the fall in the number of acquired
cases of “Ovation Hip Stem.” In addition, the number of acquired cases of artificial knee joint replacement for the artificial knee
joint product BKS TriMax increased, resulting in strong sales with double-digit growth. As a result, net sales in Japan for thiscategory were ¥4,932 million (up 4.1% year on year).
For the artificial joint category in the United States, the number of acquired cases of artificial knee joint replacement for artificial
knee joint products such as BKS TriMax and BKS Revision Knee increased as the customer base expanded, resulting in strong sales
with double-digit growth. On the other hand, sales of hip replacement arthroplasty (THA) as a whole declined due to the shift ofsome customers from the Taper Wedge-type Stem, such as the “Ovation Tribute Stem” to the Triple Taper-type Stem of othercompanies, although sales of “Entrada Hip Stem” and “Alpine Hip Stem” in artificial hip prosthesis products saw double-digit
growth. As a result, net sales in the United States for this category were $70.224 million (up 6.4% year on year). (After translation
into yen, net sales were ¥10,141 million, or up 13.8% year on year, due to the impact of the yen’s depreciation.)In the category of Trauma, net sales in Japan were ¥4,563 million (up 5.6% year on year), mainly due to the steady sales of
ASULOCK and Prima Hip Screw, which both continued double-digit growth.
In the spine category, sales of Vusion Ti 3D Cage, Lince Plate (formerly Lynx Plate) and KMC Kyphoplasty System increasedin Japan. In particular, sales of the KMC Kyphoplasty System increased this fiscal year as a result of the measures taken to capture
growth opportunities arising from the expansion of the Balloon Kyphoplasty (BKP) market. As a result of these factors, total net
sales in Japan and the United States in this category were ¥3,354 million (up 4.0% 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 36.3% (from 34.3% in the previous fiscal year) 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. In thesecond half, selling, general, and administrative expenses totaled ¥13,015 million (up 8.8% year on year), reflecting the restraint on
expenses despite an increase in expenses in the United States after translation into yen as a result of the yen’s depreciation. The
ratio of selling, general, and administrative expenses to net sales was 56.2% (56.2% in the previous fiscal year).
Despite an increase in net sales, operating profit was ¥1,746 million (down 13.7% year on year) as a result of an increase in
selling, general, and administrative expenses in addition to a higher cost of sales ratio.
Ordinary profit was ¥1,842 million (down 9.8% year on year) as a result of recording non-operating income of ¥213 million,
including foreign exchange gains of ¥190 million, and recording non-operating expenses of ¥116 million, including share of loss ofentities accounted for using equity method of ¥65 million and interest expenses of ¥31 million.
As for extraordinary income and losses, ¥206 million was recorded under extraordinary losses, consisting of ¥72 million in loss
on valuation of investment securities, ¥48 million in loss on retirement of non-current assets such as medical tools and ¥75 million
in settlement-related expenses in the first quarter among others.
As a result, net income attributable to owners of parent amounted to ¥1,271 million (down 10.7% year on year).

-2-Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

(Reference) Consolidated Net Sales by Major Item

Name and item of each segment

Fiscal year under review(From April 1, 2023
to March 31, 2024)

Compared to theprevious fiscal year

Amount (in thousand yen)(%)

13,004,313

105.2

Joint

4,932,919

104.1

Trauma4,563,424

105.6

Spine

3,322,025

104.3

Other

390,403

110.1

Subtotal

13,208,772

104.8△204,459－

Japan

Medical devices

Sales deduction
United States

10,173,434

113.7

Joint

10,141,086

113.8

Spine

32,347

79.8

Total

23,177,747

108.8

Ratio (%)
Sales ratio of our own products

Change (%)
80.2

△0.4

Notes: 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.
Segment results are as follows.
(Japan)Net sales were strong in major categories, despite the impact of lowering of reimbursement prices. Selling, general, andadministrative expenses also increased, mainly due to an increase in salaries and allowances as a result of wage increases.
As a result, net sales in this segment were ¥13,004 million (up 5.2% year on year) and operating profit was ¥1,093 million (down
11.2% year on year).
(United States)
Net sales increased for those to external customers in the artificial joint category. Selling, general, and administrative expenses
also increased due to increases in commission expenses (commission royalties) as well as research and development expenses.
As a result, net sales in this segment, including internal sales, were ¥14,360 million (up 12.3% year on year) and operating profit
was ¥636 million (down 1.8% year on year).

(2) Financial Position for the Fiscal Year under Review
1) Assets
Total assets at the end of the fiscal year under review increased by ¥2,051 million from the end of the previous fiscal year to¥31,485 million. The main factors for increases were an increase in merchandise and finished goods of ¥880 million, notes andaccounts receivable - trade, and contract assets of ¥644 million, tools, furniture and fixtures of ¥335 million and work in process of¥325 million.
2) Liabilities
Total liabilities decreased ¥260 million from the end of the previous fiscal year to ¥5,882 million. The main factors for decreases
were a decrease in long-term borrowings of ¥472 million, a fall in deferred tax liabilities of ¥375 million and a decrease in income
taxes payable of ¥146 million, while the main factors for increases were an increase in accounts payable - trade of ¥424 million, arise in retirement benefit liability of ¥216 million and an increase in short-term borrowings of ¥115 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 ¥827 million at the end of the fiscal year
under review.
3) Net assets
Total net assets increased ¥2,311 million from the end of the previous fiscal year to ¥25,603 million. The main increases were in
retained earnings by ¥927 million and in foreign currency translation adjustment by ¥1,451 million.
-3-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents at the end of the fiscal year under review decreased by ¥483 million from the end of the previous fiscal
year to ¥2,321 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 ¥2,104 million, compared with ¥2,186 million in the previous fiscal year. The main
components of income were net income before income taxes and others of ¥1,636 million and depreciation of ¥1,595 million. The
main component of the expenditure was income taxes paid of ¥893 million.
2) Cash flows from investing activities
Net cash used in investing activities was ¥1,804 million, compared with ¥1,481 million in the previous fiscal year. The main
component was an expenditure of ¥1,783 million for the purchase of property, plant, and equipment.
3) Cash flows from financing activities
Net cash used in financing activities was ¥840 million, compared with ¥514 million in the previous fiscal year. The main
components of the expenditure were repayments of long-term borrowings of ¥561 million and dividends paid of ¥343 million. The
main component of income was a net increase in short-term borrowings by ¥144 million.

(4) Future Outlook
1. "Our Purpose" and Management Policy
Based on our management policy of "Contributing to Medical Care Through the Development and Sale of Advanced Medical
Devices" with its Purpose of "contributing to enhancing the QOL of patients," the Company Group will strive for its sustainable
development and improvement of corporate value by providing truly valuable medical devices not only in Japan but also in the
global medical market through development, manufacturing and sale of medical devices based on the joint development between
Japan and the United States.
2. Management EnvironmentJapan• Growth of the elderly population
The population of elderly aged 65 and older in Japan is expected to increase from about 36.22 million in 2023 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.
• Transformation of the medical care system (response to work style reforms of physicians)
In April 2024, work style reforms of physicians came into effect to ensure the health of physicians and the quality and safety of
medical care. With the number of applicable cases involving orthopedic surgery expected to increase, the annual upper limit on
overtime work by hospital physicians was set at 960 hours in principle. This reform is expected to bring about changes such as
shifting of physicians’ tasks and more efficient surgical operations, with the greater awareness of the balance between working
hours and quality of medical care. In anticipation of these changes, we believe it is important to pursue the development andintroduction of easy-to-use products with less time required to become proficient, not to mention the development of productswith superior therapeutic effects.
• 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 will be reduced due tothe reimbursement price revision on June 1, 2024 announced by the Ministry of Health, Labour and Welfare.
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 57.79 million in 2022 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 osteoarthritic 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.

-4-Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

• Changes in medical needs
In orthopedic surgery, we are also seeing a trend toward medical treatment using digital solutions, such as preoperative surgicalplanning software, intraoperative surgical navigation systems, robotic-assisted surgery, and the development of postoperative
rehabilitation programs using data acquired from wearable devices. In addition, we recognize that it is also important for medical
facilities to introduce these new technologies in an economically rational manner to reduce treatment costs.
Moreover, in reducing treatment costs, the number of joint surgeries in Ambulatory Surgical Centers (ASCs) that perform joint
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, medical tools and simple digital solutions that contribute to improved operational efficiency
at low cost. We recognize it is necessary to provide a variety of options according to the diversifying needs of medical facilities
for the utilization of digital technology.
Other• Decline in profitability due to higher manufacturing costs and exchange rate fluctuations (weaker yen)Supply chain problems in the orthopedic medical device industry triggered by inflation in the U.S. have resulted in higher
manufacturing costs for our U.S. subsidiary, and with the yen's exchange rate against the U.S. dollar continuing to weaken to the
150-yen level, a worsening cost ratio will be inevitable for imports of products from our U.S. subsidiary.
Through the Strategic Actionable Initiatives for Cost Optimization (SAICO) Project and other measures, we will implement thefollowing measures to improve profitability.
1) Cost reduction through higher in-house production ratio2) Improvement of supply chain resilience through purchase from multiple suppliers (contract manufacturers) in the U.S.
3) Cost reductions through increased outsourcing of manufacturing to suppliers in Asia and Europe
4) Improvement of profitability through higher sales ratio of our own products5) Reduction of capital expenditure and expenses (depreciation) through lower costs of medical tools by utilizing WOMA
(Changzhou Waston Ortho Medical Appliance Co., Limited), a joint venture in China• Issue of PBR below one
For the Medium-term Management Plan, MODE2023, the final year ended March 31, 2024 saw consolidated net sales of ¥23.1
billion, operating profit margin of 7.5%, ROE of 5.2%, and ROIC of 4.5%, with the stock price also showing PBR below one
reflecting the lower profitability due to the deteriorated manufacturing costs in the U.S. and a higher cost of sales ratio in Japancaused by the rapidly weakening yen.
As a measure to raise PBR above one, we aim to achieve consolidated net sales of ¥30 billion, operating profit margin of 10.0%
or higher, and ROE of 8.0% or higher and ROIC of 7.0% or more by the final year of the first Stage (from FYE March 31, 2025
to FYE March 31, 2027) of the Long-term Vision RT500 (from FYE March 31, 2025 to FYE March 31, 2033). As measures toachieve the target, we will increase sales in Japan and the U.S. through the introduction of new products, and improve profitability
by taking measures against cost deterioration in Japan due to the weakening of the yen and engaging in the SAICO project as ameasure to reduce the cost of manufacturing in the U.S. In addition, we will periodically review our product portfolio and invest
in growth, including new product development, to achieve management conscious of shareholders' equity cost. The Company's
basic policy for shareholder returns is to pay stable dividends, aiming for a dividend payout ratio of 30% or more.
• 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, while making mutually effective use of its healthcare
development and manufacturing functions and know-how in operating various businesses and our pharmaceutical anddevelopment as well as sales and marketing functions in the medical device field across Japan and the U.S.
3. Long-term Vision RT500 (from FYE March 31, 2025 to FYE March 31, 2033)
We have formulated our Long-term Vision RT500, which ends in the fiscal year ending March 31, 2033, and have set a longterm management policy of "understanding the needs of medical settings and providing services that contribute to improving thevalue of treatment to the medical settings in a timely and stable manner with a higher level of expertise and quality.”
As quantitative targets, we aim to increase corporate value by targeting consolidated net sales of ¥50 billion or more, operating
profit margin of 15% or more, ROE of 10% or more, and dividend payout ratio of 30% or more.

-5-Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

4. First Stage (from FYE March 31, 2025 to FYE March 31, 2027)
We are working on the following key policies during the first three years of our Long-term Vision RT500 as the "First Stage."[Key policies for the next three years]• Strengthen sales capabilities (expand businesses in the U.S. and in Japan, and build a sales base in China)• Strengthen product portfolio management• Make supply chain management resilient
5. Sustainability Initiatives
Based on our management philosophy of "Contributing to Medical Care Through the Development and Sale of Advanced Medical
Devices," we will identify materiality (material issues), fulfill our corporate social responsibility (CSR) through ESG activities, andcontribute to the SDGs (Sustainable Development Goals).
[Materiality (material issues)]• Improvement in the QOL of patients• Reduction of environmental impact• Initiatives for respecting human rights• Promotion of active roles of diverse human resources• High-quality response to medical needs• Promotion of corporate governance
Based on the above, the Company forecasts net sales of ¥25,200 million, operating profit of ¥1,850 million, ordinary profit of¥1,850 million, and net income attributable to owners of parent of ¥1,300 million for the next consolidated fiscal year. For reference,the exchange rate assumed in the consolidated financial forecast is 150 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.

-6-Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

Consolidated Financial Statements
Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

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

2,804,928

2,321,552

5,270,930

5,915,467

9,378,119
593,162

10,259,039
919,068

Raw materials and supplies
Other

1,634,044
295,253

1,914,371
257,347(1,358)(3,966)

19,975,079

21,582,880

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

837,544876,633

Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net

306,786
4,600,008

354,459
4,935,249

Land
Other

1,956,171
44,246

1,960,584
193,692

Total property, plant and equipment

7,744,756

8,320,618

263,037

219,262

66,770-204,910

157,654

1,104,875
75,283

1,136,171
69,272

Allowance for doubtful accounts-(1)

Total investments and other assets

1,451,839

1,363,097

9,459,634

9,902,97829,434,714

31,485,859

Intangible assets
Investments and other assets
Investment securities
Investments in capital of subsidiaries andassociates
Deferred tax assets
Other

Total non-current assets
Total assets-7-Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

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

979,185
1,046,733

1,403,276
1,162,382

Lease liabilities
Income taxes payable

34,553
339,245

37,600
192,482

Accrued expenses
Accounts payable - other511,861
193,732

551,182
235,050

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on business
Provision for litigation settlement

196,606

237,31064,51027,252

2,546
100,000-

Other
Total current liabilities

158,217

183,973

3,627,191

4,030,510

732,248
58,163259,820
34,6291,208,511

1,424,964

103,51480,571

29,4938,000

31,56020,000Non-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
Deferred tax liabilities

375,495-

2,515,427

1,851,545

6,142,618

5,882,056

Share capital
Capital surplus

3,001,929
2,587,029

3,001,929
2,587,237

Retained earnings
Treasury shares

15,656,266(202,730)

16,583,962(165,556)

Total shareholders' equity

21,042,494

22,007,572

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Deferred gains or losses on hedges

30,29447,015

Foreign currency translation adjustment
Remeasurements of defined benefit plans

2,163,161(74,317)3,614,304(157,570)

Total accumulated other comprehensive income

2,119,138

3,503,749

130,462

92,48023,292,095

25,603,802

29,434,714

31,485,859

Non-controlling interests
Total net assets
Total liabilities and net assets-8-Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales
Cost of sales

21,307,946
7,315,297

23,177,747
8,415,514

Gross profit

13,992,648

14,762,232

Promotion expenses
Freight and packing costs

189,267
416,216

217,203414,869

Advertising expenses
Provision of allowance for doubtful accounts

90,901(28)

78,725
2,609

3,708,942
99,965

3,915,738
106,191

321,983
269,013352,471
315,317

Travel and transportation expenses
Depreciation

264,746
1,350,323

293,848
1,360,216

Research and development expenses
Taxes and dues

662,942
146,990874,425
148,698

Commission expenses
Other3,024,608
1,422,103

3,421,143
1,513,857

Total selling, general and administrative expenses

11,967,976

13,015,317

2,024,671

1,746,914

Interest income
Foreign exchange gains

99
100,294106
190,683

Insurance claim income
Commission income

13,220
2,844

2,121
-

Selling, general and administrative expenses

Salaries and allowances
Retirement benefit expenses
Legal welfare expenses
Welfare expenses

Operating profit
Non-operating income

Other

29,801

20,121

Total non-operating income

146,260

213,033

18,14531,77863,857

65,126

9,396
35,673

9,559
10,492Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodCommission for syndicated loans
Other
Total non-operating expenses

127,072

116,957

2,043,860

1,842,991

Compensation income

25,000-Total extraordinary income

25,000-Loss on retirement of non-current assets
Loss on valuation of investment securities

56,129-48,512
72,205

Impairment losses
Provision for litigation settlement100
100,000

70-

Settlement-related costs
Loss on discontinued product142,833

75,00010,416

Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses
Profit before income taxes-9-299,063

206,204

1,769,797

1,636,787

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

(Thousands of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Income taxes - current
Income taxes - deferred

664,869(330,798)

739,109(407,812)

Total income taxes

334,070

331,297

1,435,726

1,305,490

12,00633,807

1,423,719

1,271,682

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-10-Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

Consolidated Statements of Comprehensive Income(Thousands of yen)
For the fiscal year
ended March 31, 2023
ProfitOther comprehensive income
Deferred gains or losses on hedges
Foreign currency translation adjustment

For the fiscal year
ended March 31, 2024

1,435,726

1,305,490

30,294
825,016

16,7201,453,383

Remeasurements of defined benefit plans, net of tax(81,747)(83,252)

Total other comprehensive income

773,563

1,386,851

Comprehensive income

2,209,289

2,692,341

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

2,183,505

2,656,294

25,78436,047-11-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

3,001,929

2,587,029

Retainedearnings

Treasury shares

Total
shareholders'equity(111,940)

20,027,090

14,550,073(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

Accumulated other comprehensive income

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodTotal
Deferred gains Foreign currency Remeasurements accumulated Non-controlling Total net assetsinterests
translationof definedor losses onotheradjustment
benefit plans comprehensive
hedgesincome-1,351,922

7,429

1,359,352

104,678

21,491,121(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 2024

For the fiscal year ended March 31, 2024
(Thousands of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

3,001,929

2,587,029

Retainedearnings

Treasury shares

Total
shareholders'equity(202,730)

21,042,494

15,656,266(343,986)(343,986)

1,271,682

1,271,682
(152)

(152)

37,32637,326

208

208

-

208

927,696

37,174

965,078

3,001,929

2,587,237

16,583,962(165,556)

22,007,572

Accumulated other comprehensive income

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodTotal
Deferred gains Foreign currency Remeasurements accumulated Non-controlling Total net assetsinterests
translationof definedor losses onotheradjustment
benefit plans comprehensive
hedgesincome30,294

2,163,161(74,317)

2,119,138

130,462

23,292,095(343,986)
1,271,682(152)
37,326208

16,7201,451,143(83,252)

1,384,611(37,982)

1,346,628

16,7201,451,143(83,252)

1,384,611(37,982)

2,311,707

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

3,503,749

92,48025,603,802-13-Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

Consolidated Statements of Cash Flows(Thousands of yen)
For the fiscal year
ended March 31, 2023
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31, 2024

1,769,797

1,636,787

1,549,812(28)

1,595,185
2,609

Increase (decrease) in retirement benefit liability
Remeasurements of defined benefit plans

47,038
20,10079,838
16,619

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for share awards for
directors (and other officers)
Interest and dividend income

2,591

40,704(690)(37,258)

15,192

14,383

Depreciation
Increase (decrease) in allowance for doubtful accounts

(99)

(106)

Interest expenses
Commission for syndicate loan-trade18,1459,396

31,7789,559

Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale and retirement of non-current
assetsLoss (gain) on valuation of investment securities
Impairment losses

74,494(24,106)

63,857

65,126

59,664

48,539100

72,20570

Provision for litigation settlement
Settlement-related costs

100,000-

75,000Loss on discontinued productIncrease (decrease) in provision for loss on business

142,833(62,453)

10,416(2,546)

10,953(1,005,629)(437,604)(457,972)

Increase (decrease) in trade payables
Decrease (increase) in prepaid expenses
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Increase (decrease) in accounts payable - other154,939(95,432)

282,046
73,223(76,811)30,26943,65045,395

Other, net(49,161)

47,858Subtotal

2,792,262

3,218,020

99

107Interest paid
Commission for syndicate loan-trade paid

(17,911)(5,180)(29,177)(16,036)

Settlement-related costs paid
Income taxes refund (paid)(583,044)(175,000)(893,001)

Net cash provided by (used in) operating activities

2,186,226

2,104,913(1,222,370)(1,783,153)

Purchase of intangible assets
Purchase of investment securities
Payments for investments in capital of subsidiaries
and associates
Other, net(93,183)(67,475)(19,309)-(99,188)-298(2,265)

Net cash provided by (used in) investing activities(1,481,919)(1,804,728)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

Interest and dividends received

Cash flows from investing activities
Purchase of property, plant and equipment

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities-14-

501,212

144,410(574,602)(33,163)(561,796)(6,419)Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

(Thousands of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Purchase of treasury shares(90,939)(152)

Purchase of treasury shares of subsidiaries
Dividends paid

(317,287)(72,782)(343,969)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(514,780)(840,710)

24,552

57,148214,079(483,376)

Cash and cash equivalents at beginning of period

2,590,849

2,804,928

Cash and cash equivalents at end of period

2,804,928

2,321,552-15-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

(5) Notes to Consolidated Financial Statements(Note on Going Concern Assumption)
Not applicable.

(Changes in Accounting Policies)
Not applicable.

(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 an independent management unit.
Accordingly, the Company Group consists of regional (country) segments based on manufacturing and sales, with “Japan” andthe “United States” as two reportable segments.
In “Japan” the Company purchases products such as joint, trauma, and spine in the field of orthopedics mainly from ODEV, aswell 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 joint, trauma, spine, and other products, and supplies them to the Company. In
addition, ODEV independently sells joint, spine, and other 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.

-16-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

3. Information on the Amounts of Net Sales, Profit or Loss, Assets, Liabilities, and Other Items by Reportable Segment, and Informationon the Breakdown of Revenues
Previous Fiscal Year (from April 1, 2022 to March 31, 2023)
Reportable segment
Japan

United States

Total

Adjustment(Notes 1, 2)(In thousand yen)Amount reported inconsolidated
financial statements(Note 3)

Net sales
Revenue from contracts withcustomers

12,356,772

8,951,174

21,307,946－

21,307,946

Net sales to external customers

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 liabilities

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

Inter-segment net sales ortransfers
Total

Other Items
Depreciation

Increase in property, plant, and603,984
708,743
1,312,727
4,793
1,317,521
equipment and intangible assets
Investments in entities accounted
204,910
204,910
204,910－－for using equity method
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.
Fiscal Year under Review (from April 1, 2023 to March 31, 2024)
Reportable segment
Japan

United States

Total

Adjustment(Notes 1, 2)(In thousand yen)Amount reported inconsolidated
financial statements(Note 3)

Net sales
Revenue from contracts withcustomers

13,004,313

10,173,434

23,177,747－

23,177,747

Net sales to external customers

13,004,313

10,173,434

23,177,747－

23,177,747－

4,187,190

4,187,190(4,187,190)－

13,004,313

14,360,625

27,364,938(4,187,190)

23,177,747

Segment profit

1,093,251

636,5031,729,754

17,1601,746,914

Segment assets

18,508,233

15,056,031

33,564,265(2,078,406)

31,485,859

Segment liabilities

3,840,655

2,143,577

5,984,233(102,176)

5,882,056

736,430

914,907

1,651,338(56,153)

1,595,185

Inter-segment net sales ortransfers
Total

Other Items
Depreciation

Increase in property, plant, and
770,186
1,223,255
1,993,441(76,897)
1,916,543
equipment and intangible assets
Investments in entities accounted
157,654
157,654
157,654－－
for using equity method
Notes: 1. Adjustments for segment profit, segment assets, segment liabilities, and other items represent the elimination of intersegment transactions.
2. The negative adjustment of ¥2,078,406 thousand to segment assets includes ¥1,973,414 thousand of corporate assets(mainly the Company’s cash and deposits) and the negative adjustment of ¥1,560,010 thousand to inventories.
3. Segment profit is adjusted with operating profit in the consolidated statement of income.
-17-

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

[Related Information]
Previous Fiscal Year (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 statementof income.
Fiscal Year under Review (from April 1, 2023 to March 31, 2024)
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 statementof income.
[Information on Impairment Losses on Non-current Assets by Reportable Segment]
Previous Fiscal Year (from April 1, 2022 to March 31, 2023)(In thousand yen)Amountreported in
Adjustment
consolidated
financialstatements

Reportable segment
Japan
Impairment
lossesUnited States
100

Other

Total
100

－

Total

100

－

Fiscal Year under Review (from April 1, 2023 to March 31, 2024)

Impairment
lossesUnited States
70

Other

Total
70

－

Total

－

[Amortization of Goodwill and Unamortized Balance by Reportable Segment]
Previous Fiscal Year (from April 1, 2022 to March 31, 2023)
Not applicable.
Fiscal Year under Review (from April 1, 2023 to March 31, 2024)
Not applicable.

-18-

100

(In thousand yen)Amountreported inconsolidated
Adjustment
financialstatements

Reportable segment
Japan

－

70

－

70

Japan Medical Dynamic Marketing, INC. (7600) Summary of Financial Results for the Fiscal Year Ended March 2024

[Information on Gain on Bargain Purchase by Reportable Segment]
Previous Fiscal Year (from April 1, 2022 to March 31, 2023)
Not applicable.
Fiscal Year under Review (from April 1, 2023 to March 31, 2024)
Not applicable.

(Per Share Information)
Previous fiscal year
(From April 1, 2022
to March 31, 2023)

Items

Fiscal year under review(From April 1, 2023
to March 31, 2024)

Net assets per share¥880.64¥968.74

Net income per share¥54.03¥48.31

Not listed, because there are no dilutive
shares.

Not listed, because there are no dilutive
shares.

Diluted net income per share(Note) Basis for calculation of net income per share is as follows.
Items

Previous fiscal year
(From April 1, 2022
to March 31, 2023)

Fiscal year under review(From April 1, 2023
to March 31, 2024)

Net income attributable to owners of parent (in1,423,719
1,271,682
thousand yen)Amount not attributable to common shareholders－－(in thousand yen)
Net income attributable to owners of parent for
1,423,719
1,271,682
common shares (in thousand yen)
Average number of shares of common stock
26,351,799
26,322,392
during the period (shares)(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 so that these are deducted from thecalculation of the average number of shares outstanding during the period for the purpose of calculating net income pershare.
The average number of such treasury stock during the period, which was deducted from the calculation of net income
per share, was 124,081 shares in the previous fiscal year and 153,488 shares in the fiscal year under review, and thenumber of such treasury stock at the end of the period, which was deducted from the calculation of net assets per share,
was 175,107 shares in the previous fiscal year and 141,318 shares in the fiscal year under review.

(Significant Subsequent Events)
Not applicable.

-19-