Summary of Consolidated Financial Results for the First Quarter of the Fiscal
Year Ending March 2023 [Japanese GAAP]
July 29, 2022
Japan Medical Dynamic Marketing, INC.
Listing
TSE
7600
URL https://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
August 10, 2022
the quarterly reportof dividend payment
Preparation of supplementary materials for the quarterly financial results : None
Holding of quarterly financial results briefing: NoneCompany nameSecurities code

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

1. Consolidated Financial Results for First Quarter of the Fiscal Year Ending March 2023 (from April 1 to June 30, 2022)(1) Consolidated Operating Results (year to date)(Percentages indicate changes from the same quarter of the previous year.)
Net income
Operating profit
Ordinary profit
attributable to ownersof parent

Net sales
Million yen%

Million yen%

Million yen%

Million yen%

Q1 of FYE March 2023
5,027
10.8
498
483
336
-10.1
-10.7
-7.4
Q1 of FYE March 2022
4,537
33.1
554
129.0
542
127.2
363
176.3
(Note) Comprehensive Q1 of FYE March 2023 1,524 Million yen ( 321.1%) Q1 of FYE March 2022 362 Million yen ( 376.0%)
incomeDiluted net income per
Net income per share
share
Q1 of FYE March 2023
Q1 of FYE March 2022

yen

Yen

12.75
13.78

-

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Capital adequacy ratio

Million yen

Q1 of FYE March 2023
28,655FYE March 2022
27,342(Reference) Shareholders’ Q1 of FYE March 2023
22,572Million yen
equity%22,69878.8
21,49178.2
FYE March 2022 21,386 Million yen

2. Dividends
Annual dividends
End of firstquarter

End of second
quarteryen

End of third
quarteryen

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

End of period

Total

yen

yen

yen

-

12.00

12.00

: None

13.00

13.00

3. Consolidated Financial Forecasts for FYE March 2023 (from April 1, 2022 to March 31, 2023)(Percentages indicate changes from the previous year for the full year, and from the same quarter of the previous year for the quarter.)
Net income
Net income per
Net sales
Operating profit
Ordinary profit
attributable toshareowners of parent
Million yen%

Million yen%

Q2 (Cumulative)
10,200
15.1
1,100
3.9
Full year
22,000
14.6
2,800
5.2
(Note) Revisions to the most recently announced financial forecast

Million yen%

Million yen

%

yen

1,050
2,700
: None

0.7
4.2

700
1,850

-30.2
-13.4

26.53
70.12

*Notes(1) Changes in significant subsidiaries during the first 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)**Q1 of FYE March2023
Q1 of FYE March2023
Q1 of FYE March
2023

26,475,880shares

FYE March 2022

26,475,880shares

92,179shares

FYE March 2022

92,179shares

26,383,701shares

Q1 of FYE March
2022

26,383,824sharesThis 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 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 Financial Results for the First 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 ............................................................. 2
2. Quarterly Consolidated Financial Statements and Main Notes .............................................................................................................. 3(1) Quarterly Consolidated Balance Sheet ............................................................................................................................................. 3(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income .......................... 5(3) Notes to Quarterly Consolidated Financial Statements .................................................................................................................... 7(Note on Going Concern Assumption) ............................................................................................................................................... 7(Notes on Substantial Changes in the Amount of Shareholders’ Equity) ........................................................................................... 7(Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements) ...................... 7(Additional Information) .................................................................................................................................................................... 7(Segment Information, etc.) ............................................................................................................................................................... 7
3. Other ...................................................................................................................................................................................................... 8
Sales....................................................................................................................................................................................................... 8-1-

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

1. Qualitative Information on Quarterly Financial Results(1) Explanation on Operating Results
During the first quarter of the fiscal year ending March 31, 2023 of the Group, net sales were ¥5,027 million (up ¥489 million,or 10.8% year on year), operating profit was ¥498 million (down ¥55 million, or 10.1% year on year), ordinary profit was ¥483
million (down ¥58 million, or 10.7% year on year), and net income attributable to owners of parent was ¥336 million (down ¥27
million, or 7.4% year on year).
In Japan, the number of cases improved compared with the same quarter a year ago, a quarter affected by COVID-19, and net
sales were ¥2,933 million (up ¥210 million, or 7.7% year on year). On the other hand, in the United States, the number of cases
increased due to a recovery in business activities as a result of the expansion of COVID-19 vaccinations and other factors incomparison with the same quarter a year ago when cases grew in number. However, net sales to external customers in the UnitedStates (in U.S. dollars) decreased 1.6% year on year due to a decline in case unit prices, but after translation into yen, net sales
increased 15.4% to ¥2,093 million due to the impact of the yen’s depreciation.
In the artificial joints category, combined total net sales in Japan and the United States increased 11.5% (4.8% in Japan and 15.5%
in the United States) year on year to ¥3,222 million as sales in the United States grew substantially (after translation into Japaneseyen) due to the yen’s sharp depreciation. (Reference: The exchange rate for U.S. sales was 110.03 yen to the U.S. dollar in the samequarter a year ago and was 129.05 yen to the U.S. dollar in the quarter under review.)
In the category of osteosynthesis materials, net sales in Japan increased 10.7% year on year to ¥960 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 grew, resulting in a 10.2% increase in total net sales in Japan and the United States to ¥827 million.
As for cost of sales, the cost of sales ratio was 33.4% (32.0% in the same quarter a year ago) mainly due to the yen’s depreciation
and revision to redemption prices in Japan.
Selling, general and administrative expenses totaled ¥2,849 million (up 12.5% year on year), reflecting an increase in expenses(after translation into yen) in the United States as a result of the yen’s depreciation. The ratio of selling, general and administrative
expenses to net sales was 56.7% (55.8% in the same quarter a year ago).
Despite an increase in net sales, operating profit was ¥498 million (down 10.1% year on year) due to an increase in selling,
general and administrative expenses in addition to an increase in the cost of sales ratio owing to the yen’s depreciation.
Ordinary profit was ¥483 million (down 10.7% year on year) as a result of recording non-operating income of ¥35 million,
including insurance claim income of ¥13 million, and recording non-operating expenses of ¥49 million, including foreign exchange
losses of ¥30 million.
As for extraordinary income and losses, ¥6 million in reversal of provision for loss on business was recorded under extraordinary
income and ¥12 million in loss on retirement of non-current assets such as medical tools was recorded under extraordinary loss.
As a result, net income attributable to owners of parent amounted to ¥336 million (down 7.4% from the previous fiscal year).
Segment results are as follows.
1) JapanNet sales were ¥2,933 million (up 7.7% year on year) and operating profit was ¥255 million (down 22.6% year on year).
2) United States
Net sales were ¥2,949 million (up 12.3% year on year) and operating profit was ¥206 million (down 14.6% year on year).

(2) Explanation on Financial Position
Total assets at the end of the quarter under review increased ¥1,312 million from the end of the previous fiscal year to ¥28,655
million. The main increases were in merchandise and finished goods by ¥915 million and raw materials and supplies by ¥422
million.
Total liabilities increased ¥105 million from the end of the previous fiscal year to ¥5,957 million. The main increase was in shortterm borrowings by ¥219 million, and the main decreases were in provision for bonuses by ¥149 million and in long-termborrowings by ¥56 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 ¥707 million at the end of the quarter underreview.
Total net assets increased ¥1,207 million from the end of the previous fiscal year to ¥22,698 million. The main increases were inforeign currency translation adjustment by ¥1,066 million and in deferred gains or losses on hedges by ¥96 million.

(3) Explanation on 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 28, 2022.

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Japan Medical Dynamic Marketing, INC (7600) Summary of Financial Results for the First 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(June 30, 2022)

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

2,590,849

2,711,659

5,212,555

4,816,943

8,186,658
497,823

9,102,262
422,207

Raw materials and supplies
Other

1,410,927
149,211

1,833,797
374,383

Allowance for doubtful accounts-1,386-1,22918,046,638

19,260,024

728,450

761,654

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

366,033
4,723,255

Land
Other

1,953,479
48,173

1,957,063
62,533

Total property, plant, and equipment

7,772,687

7,870,540

291,960

298,052－

34,172

174,887

183,552

971,990
84,558925,382
83,6881,231,435

1,226,796

9,296,083

9,395,388

27,342,722

28,655,413

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-3-Japan Medical Dynamic Marketing, INC (7600) Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2023

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

The quarter under review(June 30, 2022)

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

785,671557,046927,645
777,038

Lease liabilities
Income taxes payable

33,163
266,440

29,026
172,877

Accrued expenses
Accounts payable - other

512,569
189,283

598,292
148,407

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

194,015

44,481

65,20013,85165,000231,291

48,780223,029

Total current liabilities

2,899,680

2,983,429

Non-current liabilities
Long-term borrowings

1,247,662

1,191,228

10,875
1,023,546

6,732
1,037,713

88,322

92,471

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

29,201

29,288Long-term deposits received
Deferred tax liabilities

8,000
544,3108,500
607,808

Total non-current liabilities

2,951,919

2,973,742

5,851,600

5,957,171

Shareholders' equity
Share capital

3,001,929

3,001,929

Capital surplus
Retained earnings

2,587,029
14,550,073

2,587,029
14,569,057

Total liabilities
Net assets

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

20,027,090

20,046,074

1,351,922

96,4862,418,621

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

-4-

7,429

10,916

1,359,352

2,526,024

104,678

126,142

21,491,121

22,698,241

27,342,722

28,655,413

Japan Medical Dynamic Marketing, INC (7600) Summary of Financial Results for the First 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 quarter under review(In thousand yen)
The same quarter a year ago(From April 1 to June 30, 2021)

The first quarter under review(From April 1 to June 30, 2022)

4,537,774
1,450,366
3,087,408

5,027,421
1,678,888
3,348,532

87,696
34,597
16,689806,035
25,552
69,14259,527-49
31,204299,11246,595
111,835
607,258
337,764

108,41343,81622,991
899,198
24,991
77,81574,979-157
55,831
339,062
36,117
135,954
696,827
334,035

2,532,962
554,446

2,849,877
498,655

37
544
3,174
806
4,562

28
2,844
13,22018,92635,02010,265-5,751
30,969

-

7,642

958
5,751
16,9752,056
3,452
49,871

Ordinary profit
Extraordinary income
Reversal of provision for loss on business

542,033

483,803-

6,967

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

－

6,967

11,132
11,132

12,121
12,121

Net income before income taxes and others
Income taxes - current
Income taxes-deferred
Total income taxes

530,900
172,627-6,248166,379

478,649
136,306
2,485
138,792

Net income
Net income attributable to non-controlling interests

364,521955

339,857
3,347

Net income attributable to owners of parent

363,565

336,510

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-5-Japan Medical Dynamic Marketing, INC (7600) Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2023

Quarterly Consolidated Statement of Comprehensive Income
The quarter under review(In thousand yen)
The same quarter a year ago(From April 1 to June 30, 2021)

The first quarter under review(From April 1 to June 30, 2022)

Net income

364,521339,857

Total accumulated other comprehensive income
Deferred gains or losses on hedges-2,78896,486-3,673
3,990

1,084,814
3,486

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income-2,471

1,184,788

362,050

1,524,645

361,161

1,503,182

888

21,463(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-6-

Japan Medical Dynamic Marketing, INC (7600) Summary of Financial Results for the First 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 quarter under review are reasonably calculated based on the information available at thetime of preparation of the consolidated quarterly financial statements. However, there are considerable 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 andother environments deviate from the current assumptions, the Group’s business performance and financial position may beaffected.
For reference, there are no significant changes from the assumptions made as of the end of the previous fiscal year.
(Segment Information, etc.)
I. Consolidated Financial Results for the First Quarter of the Fiscal Year Ended March 2022 (from April 1 to June 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

Adjustment(Note 1)2,722,937

1,814,837

4,537,774-

4,537,774

2,722,937

1,814,837

4,537,774-

4,537,774-

811,928

811,928-811,928-

2,722,937

2,626,766

5,349,703-811,928

4,537,774

329,618

241,990571,608-17,162

554,446

Notes: 1. Adjustments for segment profit include ¥17,162,000 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.

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

II. First Quarter of the Fiscal Year Ending March 2023 (from April 1 to June 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

2,933,867

2,093,553

5,027,421-

5,027,421

2,933,867

2,093,553

5,027,421-

5,027,421-

855,861

855,861-855,861-

2,933,867

2,949,415

5,883,282-855,861

5,027,421

255,153

206,652

461,806

36,849498,655

Inter-segment net sales or transfers
Total

United States

Notes: 1. Adjustments for segment profit include ¥36,849,000 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 quarter under review by segment are as follows.
First Quarter of the Fiscal Year
Compared with theEnding March 2023 (from April 1 same quarter a year ago
to June 30, 2022)
Amount (in thousand yen)(%)

Name and item of each segment
Japan
Artificial joints

Medical devices

3,003,114

107.8

1,134,977

104.8

Osteosynthesis materials

960,182

110.7

Spinal fixation devices

820,796

110.5

Other

87,156

95.3

United States

2,093,553

115.4

2,087,054

115.5

6,498

82.0

Subtotal (A)5,096,667

110.8

Sales deduction (B)-69,246－

Total (A) + (B)5,027,421

110.8

Artificial joints
Spinal fixation devices(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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