M3, Inc.

Presentation Material

F e b r u ary 2 0 2 2

Copyright © 2022 M3, Inc. All rights reserved.

The following presentation contains forecasts, future plans,management targets and other forward-looking projections relating toM3, Inc. and/or its group. These statements are drawn fromassumptions of future events based on data currently available to us,
and there exist possibilities that such assumptions are objectively
incorrect and/or may produce differing actual results from thosementioned in the statements.
Furthermore, information and data other than those concerning theCompany and its subsidiaries/affiliates are quoted from public
information, and the Company has not verified and will not warrant its
accuracy or dependency.
M3, Inc.

Copyright © 2022 M3, Inc. All rights reserved.

1FY2021 Q3 Consolidated Results(mn yen)Sales

FY2020
Q1-Q3

FY2021
Q1-Q3

YoY

123,750

154,169+25%

Operating
Profit42,46884,627+99%

Pre-tax
Profit42,481

85,177+101%

Net Profit

29,50758,535+98%+26%

excludingstock
valuation
impactsuch astheMedlive
IPO

Steady progress to the year
Copyright © 2022 M3, Inc. All rights reserved.

2FY2021 Q3 Consolidated Results by Segment(mn yen)FY2020
Q1-Q3

FY2021
Q1-Q3

YoY

Domestic

MedicalPlatform

Sales

55,62964,672+16%

Profit27,46930,795+12%

Evidence
Solution

Sales

14,427

16,188+12%

Profit2,648

3,844+45%

CareerSolution

Sales

10,965

11,024+1%

Profit3,353

4,027+20%

Site
Solution

Sales

12,53025,657+105%

Profit1,510

4,554+202%

Emerging
Businesses

Sales

2,395

2,463+3%

Profit718

1,258+75%

Sales

29,81437,860+27%

Profit8,378

41,473+395%

Overseas

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 Marketing support
sales +17%
 Continued upfront
investment in staff
reinforcement
 Acceleration inclinical trials

 Contribution partly
from vaccine
support services forcorporates andmunicipalities

 Uplift from TamaBiotransfer 25% profit growth
excluding 30.9 bnyen profit from
Medlive IPO (40%also excludingMedlivecontribution)

3

FY2021 Q3 Consolidated Operating Profit Contribution(mn yen)Acceleration in
COVID related trials

Continued
demand frompharmaHealthy
overall
2,164

1,196673

Stock valuation
changes
540

286

42,1593,04384,627

3,326

42,468FY2030,931

53,696

Vaccine administration
support contribution

Adjust.

FY21

1/3 of profit growth contribution from Medical Platform,and 2/3 from other segments.
Copyright © 2022 M3, Inc. All rights reserved.

4

FY2021 Q3 Overview
MedicalPlatform Continued growth in Q3 from digital transformation
momentum Staff reinforcement initiatives launched mid-Q2 showing
healthy staffing results, to become a growth driver

EvidenceSolution

 On recovery path as COVID related negative impact dissipates Orders backlog increased to 30.0 bn yen with increase in COVID
related projects (vaccines and treatments)

CareerSolution

 Business expanded with contribution partly from vaccine
administration support services
 Core business remain on recovery path with alleviation fromnegative COVID impact

SiteSolution

 Vaccine administration support services remain strong Growth seen in core businesses such as the home nursing careservices

Overseas Segment profit ex-Medlive grew 40% YoY, with all regions doing well
 US & EU especially strong with 45% profit growth YoY
Copyright © 2022 M3, Inc. All rights reserved.

5Pharmaceutical Sales & Marketing DX

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6Pharma Marketing Cost and TAM for M3
PresentFuture

M3’s Role

Industry
productivity
improvementfrom DXMR
RelatedCosts
1.5 tn yen

Internet
50 bn yen97%
70~80%

3%

20~30%

700~800
bn yen(2) MR Activity
DX Support

200~300
bn yen(1) InternetMarketing
Support(3) Data-driven
MarketingSupport= TAM

M3 involvement to go beyond the bounds on the internet
to improve productivity across the entire industry
Ref: M3 survey and estimate; numbers are approximate

Copyright © 2022 M3, Inc. All rights reserved.

7Service Scope Expansion
Firm-Wide DX Support

Per Product Support
Theme

Efficient promotion

Fundamental productivity
improvement of the marketingand sales processes

ClientProduct manager

Top management

Marketing per individual
drug

Optimization of marketing andsales of entire drug portfolio

Service
Strategy

MR-kun, Web Conference,etc.

Complete solution provisionsuch as marketing strategy
planning and resource
allocation data

Contract
FormatContracts per productComprehensive strategic
alliances

ServiceCoverage

Drastic structural reinforcement implemented to support pharmaceuticalDX support… a new paradigm shift in collaboration with pharma companies.
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8

m3.com Media Strength: megaWebinars
 Highest number oflive viewers topped
33,000, equivalent
to 10% of all
physicians in Japan On-demandbroadcasts attractover double that oflive …roughly
70,000 viewers
attainablem3.com media power continues to increase. Equivalent to 10%of busy physicians joining live (on-demand attracts over 20%,
analogous to a massive stadium).
Copyright © 2022 M3, Inc. All rights reserved.

9

Medical Platform Segment Performance
Unit: million yenSalesProfit30,000
25,00020,00015,00010,0005,000
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY18

FY19

FY20

FY21

Structural DX progression supported Q3 growth
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10

Professional Staff Fortification Plan(indexed)

375~500

ExternalConsultants

 HR capacity
increase Recruiter
reinforcement(fee scale)225
approx.

100

 New grad
recruitment
fortification

60%

FY2019NOW

Few years
from now..

121(pre-COVID)
Cost per
Staff

40%

approx.

M3Employees

Staff Fortification
InitiativesTemporary
increase dueto outsourcing

Normalizedwith properhires

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 Appeal potential
M3 career pathsand merit(skill acquirement,compensation, etc.)

11M3 Professional Staff Employment
Interviewees

Acceptance Rate

OffersEmployment~ 3.7x~2.3x~1.7x~3.8x

Q3 Q4 Q1 Q2 Q3

Q3 Q4 Q1 Q2 Q3

Q3 Q4 Q1 Q2 Q3

Q3 Q4 Q1 Q2 Q3

FY20

FY21

FY20

FY21FY20

FY21

FY20FY21

Hiring fortification initiatives have dramatically increased thenumber of applicants and hires. Sales expected to follow suitnext FY, although outsourcing costs will remain elevated.
Copyright © 2022 M3, Inc. All rights reserved.

12

DX of the Clinical Scene

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13

Potential in DX of Clinics
Current

Post DX

AccessLong waiting timein lobbies

Online reservations

Diagnosis

OfflineOnline/Offline Hybrid

Payment

Wait to pay atservice desk

Head straight home(digital payments)

RxLocal pharmacy

Delivered to homeor officeMedicalRecords

Difficult access

Review own healthrecords online

Midnight
Emergencies

Wait until nextmorning

24/7 Online Service

Advancement in DX of the clinical scene offers a complete
renewal of the patient experience.
Copyright © 2022 M3, Inc. All rights reserved.

14

M3 DigiKar EHR Growth
Number of Sites Using M3 DigiKar

3,500

 Over 3,000 medicalsites have adopted
DigiKar No.1 in annual
adoptions acrossboth cloud and onpremise electronic
health recordsystems
 3,500 expected
adoptions for this FY

FY15

16

17

18

19

20

21FCT

Incontestable #1 market share within cloud based digital
health records, with almost 70 million charts on record
Copyright © 2022 M3, Inc. All rights reserved.

15

DX of Medical Field: M3 DigiKar Smart
Medical Institutions:Managing System

Patients:
Mobile AppAppointment

AutoReception

NextAppointment

M3 DigiKar Smart

One-Stop Functionality

 Less reception work Less system costs
 Infectious disease
control Facilitation of return
visits and continuity ofCare

Consultation

Payment

Linking toEMR

 No bulky patient cards
 Cashless payments
 Less wait time Treatment
continuation withappointment
reminders

Several hundred applications since launch in October.
60x faster pick-up pace compared to DigiKar launch days.
Copyright © 2022 M3, Inc. All rights reserved.

16

M3 Growth Strategy for 2020’s

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17

Business Scope Expansion and Growth Potential
2010
Country

：

3 →

2015

2020

8 (2.5x) →11 (3.5x)

Business Types：

6 →

15 (2.5x) →Business Units

：

10 →

24 (2.5x) →Sales (bn)

： 14.0 →(Type x Country)

Similar pace35 (6.0x) of growth
expected
56 (5.5x) over the next
10 years

64.7 (4.5x) → 169.1 (12x)Aggressive business development to ensue in reaching
growth potentials exceeding 10~20x current levels…
Copyright © 2022 M3, Inc. All rights reserved.

18

Increase in M&A
Number of Deals That Were Evaluated

267

270

FY20FY2118660

FY1575

FY16111FY17144

FY18

FY19M&A activity and pipeline continue rapid acceleration in line withbusiness expansion. Number of executions and size are also increasing.
Copyright © 2022 M3, Inc. All rights reserved.

19

Establishment of M3 AI, Inc.
 Platform that offers
various medical AI forhospitals and clinics
 Excellent medical AI
discernment andmarketing know-how Joint venture between
M3 and PSP (60：40)

Furthering AI assisted clinical DX through offering outstanding
AI engines. Already utilized in over 1 million diagnoses at over
200 medical sites.
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20

Consolidation of 3H Group
Clinical Trial
Recruitment

DCT(Decentralized Clinical Trials)

ePRO

3H
Business
OutlineLarge scale patient
panel expansion for
protocol based
patient recruitment

Clinical trial andstudies independentof need for the patient
to visit a hospital

Provision of app “Pguardian”: Efficientpatient symptom
reporting datacollection

Synergies
with M3

Over 1.5 million
combined (M3 & 3H)
registered patients,
becoming the largest
panel by far.

Further strengtheningof M3’s positioning as
an powerful DCT
leaderIntegration of M3
DigiKar Smart and M3
Digikar; developmentof patient-physician
communication
platform

Establishing an invincible lead position within digitalizationof clinical trials in addition to pharma marketing arena.
Copyright © 2022 M3, Inc. All rights reserved.

21

Consolidation of MirVracha Established in 2011,
operates a specializedwebsite for medicalprofessionals with over
400,000 physicians,
equivalent to 60% of all
physicians in Russia
 Full-scale launch of aphysician platform-based
business in Russia
Copyright © 2022 M3, Inc. All rights reserved.

22

M3 US&EU Business Region Snapshot
2021 (Jan-Dec)
Sales

Operating Profit

Employees

Countries

40 bln yen scale

10 bln yen scale

approx. 1,700

8M3 (EU)

Abingdon,UK

M3 USA

Fort Washington,
PA

QQFS

Gothenburg,
SwedenVidal Germany

Frankfurt, Germany

PracticeMatch
St. Louis, MO

Vidal France
Paris, France

Vidal Spain
The Medicus Firm
Dallas, TX

M3 Wake Research

Madrid, Spain

Raleigh, NC

M360

Bangalore,
India

Copyright © 2022 M3, Inc. All rights reserved.

Ekas

Sydney,Australia

23

US&EU Business Expansion
US&EU Business Sales Trend(million yen)

45,0002. Acquisition of market researchbusiness in the UK. Launch of M3
Global Research

40,00035,00030,00020,000

3. Acquisition of Doctors.net.uk. Launchof promotion business in the UK.

7▾6▾25,0004. Acquisition of PracticeMatch. Launchof job placement business in the US5▾15,000

5. Acquisition of Vidal. Launch ofpharma DB business in France,Germany, and Spain.

4▾2021

2020

2019

2018

2017

2016

2015

2014

2013

7. Acquisition of Weda. Launch of EHR
business in France.

2012

2009

2008

2007

2006

2005

2004

2003

1
▾

6. Acquisition of Wake Research. Launchof clinical trial site managementbusiness in the US.

2011

5,000

32 ▾▾
2010

10,0000

1. Acquisition of MDLinx in the US.
Launch of promotion business in theUS.

*

60% of sales and profit growth from synergies and organic growth.
* 2021Q4 is estimatedCopyright © 2022 M3, Inc. All rights reserved.

24

US&EU Business Areas
US&EU Business Sales Breakdown

Representative Brands2021

EHRPharma
DB &CDS
CareerClinical
TrialsPharmaMarketing&Research PharmaMarketing&Research– M3 Global Research– Doctors.net.uk– Vidal– MDLinx

 ClinicalTrials– M3 Wake Research Career– PracticeMatch– The Medicus Firm

 Pharma
DB & CDS– Vidal EHR– WedaUS Clinical Trials business: Orders for mRNA studies (nonCOVID-19) continue to increase
Copyright © 2022 M3, Inc. All rights reserved.

25

Ecosystem Synergy Creation Flow

Reinforcementof Ecosystem

Structural
Differentiation

Investment TargetExpansion

Self-reinforcing expansion cycle powered by superbly capable staff.
Talent fortification structure development to further bolster cycle
sustainability.
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26

COVID Vaccine and Treatment Related Initiatives
Vaccine Administration

Japan

Overseas

Clinical Trials

Corporates

Municipalities

Medical Sites〇〇〇(168corporates)(183municipalities)(vaccines,treatments)✕✕〇(vaccines,treatments,boosters)

Vaccine services to support 9.23 million administrations.
Expected orders for booster administration in Japan and global
clinical trials, with high potential for new demand emergence.
Copyright © 2022 M3, Inc. All rights reserved.

27

Annual Results
Sales

Operating Profit & Net Profit
169,198(mn yen)57,972(mn yen)Operating ProfitNet Profit

130,973
113,059

41,19834,33730,80027,48625,05024,153
21,34620,022
19,225

94,471
78,14364,66051,346

16,93816,061
13,73813,49336,759107 480 891

26,007
19,0408,534
14,646
5,729
11,811
2,276
7,475
3,854
1,563

7,648

8,878

10,4286,031
5,598
3,990 4,803 3,486 4,492
3,597
2,677
1,683
2,363
8951,938
255 5091,609 1,965
46 62 136 279 493 991

FY00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20(6m)9,294-93 -93FY
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20(6m)Forecasts were not given due to unpredictable variables, basic
outlook is for continued growth.
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