Company Overview &Future Outlook

Shigekazu Takeuchi
President and Group CEO

H.U. Group Holdings, Inc.
(TSE: 4544)

January 14, 2021

Disclaimer

Disclaimer regarding forward-looking statement:
The performance forecast provided in this document is prepared by the management
based on currently available information and various hypotheses and ideas including
significant risks or uncertainties. Please be aware that the actual performance may turnout to be different from the forecast as a result of various contributing factors.
Factors affecting the performance include, among others, aggravation of the economic
situation, fluctuation of the exchange rate, change of regulatory, statutory, andadministrative requirements, delayed launch of new products, pressures from the productstrategies of competitive companies, and decline of the sales potential of existing products.

2

Rebranding (as of July 2020)

Move forward from “Supporting the medical field by providing clinical tests”
to “Provide the best healthcare to all people”⚫ “Healthcare”：Expand business domain from “Medical” to “Healthcare”⚫ “for You”

：Provide healthcare to individual (B2C)
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Our Business• A unique business model: CLT and SR offer services, and IVD develops
instruments and reagents• Contribute to healthcare by expanding businesses related to the medical field

Medical treatment

Surgery

Specimens

Test results
Instruments/reagents

Sterilization
services, etc.

Clinical Laboratory
Testing (CLT)In Vitro Diagnostics(IVD)

Sterilization Related(SR)

No.1 market shareNo.2 market shareNo.1 market share+Emerging New Business (ENB)
4

Net Sales/EBITDA by Segment• CLT and IVD are the two main pillars of our business
FY2019 Net Sales
SR12%

FY2019 EBITDA

ENB

SRENB
9%2%

4%1IVD
21%$1,797
Million

1CLT

IVD

62%

40%

1. Exchange rates: 1 USD=105 JPY$219
Million

CLT48%

5

Our Position and Strengths: CLT BusinessOur market share inJapanese CLT market
120.4%

Japanese CLT market

1$5.5 billion (5 years CAGR*: 1.6%)
2*from 2014 to 2019

Our strengths

No.1• Coverage of large hospitals in Japan3: over 80%• Focus on advanced genetic testing✓ In-house NGS4 testing✓ Exclusive distributor in Japan®
◆ BRACAnalysis CDx (Myriad Genetics Inc.)®
◆ FoundationOne (Foundation Medicine Inc.)✓ Clinical trial collaborating with SCRUM Japan5

1. An internal investigation based on the material published by Yano Research Institute Ltd.
2. Exchange rates: 1 USD=105 JPY 3. Hospitals with 500 beds or more 4. NGS: Next-Generation Sequencing
5. Cancer Genome Screening Project for Individualized Medicine in Japan

6

Our Position and Strengths: IVD Business
Established 23.3%
market share in Japanese
immunoassay market
based on installed1
instruments

Immunoassay reagent market in Japan2$1.8 billion (5 years CAGR*: 3.7%)
3*from 2013 to 2018

Strengths of Lumipulse® series in immunoassayfieldNo.2•# of installation: over 1,400•# of testing items: over 60✓ Infectious disease✓ Tumor marker✓ Hormoneetc.

1. An internal investigation based on the survey results conducted by Japan Medical Association
2. An internal investigation based on the materials released by Japan Association of Clinical Reagents Industries
3. Exchange rates: 1 USD=105 JPY

7Our Unique Strengths in the Clinical Testing Field• Having two strongly positioned businesses within one group• Accelerating group unification centered around H.U. Group Research Institute

CLTIVD

Testing services to medicalinstitutions

Developing instruments andreagents for immunoassay

Research & Development
Basic research and supervision of group R&D8Global Footprint

Fujirebio Diagnostics, Inc.

Fujirebio Europe N.V.

Baylor Genetics

Ping An SRL Medical
Laboratories

Headquarters(Baylor Miraca Genetics
Laboratories, LLC)

Main subsidiary

Equity method affiliates9Baylor Genetics•1

2

Uniquely positioned to become the market leader in NICU/PICU andpediatric health by establishing Whole Genome Sequencing
Strong reputation
and R&D capabilities
in genetic testing

Commercial lab
expertise

60%

40%

Established in 20151. NICU: Neonatal Intensive Care Unit

2. PICU: Pediatric Intensive Care Unit

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Ping An SRL Medical Laboratories
60%40%

Instruments/reagents sales

Ping An SRL MedicalLaboratories
Consultation forlab operation

Testing labs
nationwide in China

Imaging centers
Tests from medical checkup applicants• Employees of Ping An• Insurants of Ping An insurance

Shenzhen

Medical checkup clinics

3 facilities in thesame district
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Our initiatives for fighting
against COVID-19

Our Services and Products for Detecting SARS-CoV-2
We provide a comprehensive testing service and products for
SARS-CoV-2 detection
CLTPCR

IVD
High-sensitive
antigen test

Rapid antigen test

Lumipulse SARS-CoV-2 Ag

ESPLINE SARS-CoV-2

Lumipulse L2400

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Advantage of Automated High-Sensitive Antigen Test over PCR
PCR

Batch processing

Inefficient for mass-screening tests

High-sensitive antigen test

High-throughput flow testing• Up to 240 test/hour• Within 30 min/test
Ideal for mass-screening tests
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High-Sensitive Antigen Testing Service at Major Airport Quarantines• 8 major Japanese international airport quarantines chose Lumipulse
for mass- screening tests for entrants

Airport quarantines

3 strengths

Flow testing

SalivaEquivalent to PCR

40 units
8 airports

CTS

SDJ+FUK

Detects SARS-CoV-2 variants

KIXNGOHNDNRT

OKA15

Global Expansion of High-sensitive Antigen Test
• Approved as CE Marked product in Aug 2020 which made EMEA an
addressable market• Aiming to expand business in the US upon FDA approval• Initial demand kicked
off in Italy(over 300 Lumipulse havebeen installed in EU)•Partnership with Centogene• Antigen test offered in Hamburg (HAM),Frankfurt (FRA)• Adopted for “COVID-19 Tested Flight”
screening for Lufthansa & Austrian Airlines• Applied to the U.S. FDA for EUA approval on Dec 22, 202016

Rapid Antigen Test (ESPLINE SARS-CoV-2)• Steady sales in Japan, emerging sales opportunity outside Japan• Superiority of ESPLINE’s sensitivity over domestic competitors1 wasproven by a third-party evaluation2Easy• No instruments

Rapid• Within 10 to 30 minutes

Usability• POCT3

1. QuickNavi-COVID19 Ag (Denka Seiken), ImmunoAce SARS-CoV-2 (Tauns Laboratories), Standard Q COVID-19 Ag (SD Biosensor)
2. Yoshihiro Kawaoka; et al. Comparison of Rapid Antigen Tests for COVID-19; Viruses 2020, 12, 1420
3. POCT: Point of Care Testing17

Future of COVID-19 Testing
When vaccines/treatments become widely available, cost benefit,
ease of use, and speed will become important in testing
TodayFuture(vaccine/medicine in development)(vaccine/medicine have penetrated)

PCR

High-sensitive/rapid
antigen test

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Summary ofNew Medium-term Plan
“H.U. 2025 ~Hiyaku & United~”5 Year Medium-term Plan “H.U. 2025”• Key milestone will be the launch of the New Central Lab in CY2022• With the coming startup of the New Central Lab, the medium-term plan will
be divided into two phases
FY2020

FY2021

FY2022Phase ICOVID-19 Contribution& Restructuring
COVID-19 impact• Contribution to COVID-19

New Central Lab• Start operation in Jan. 2022

Restructuring
Healthcare x ICT• Reorganization of lab
network nationwide• Logistics cost reduction• Start-up period

FY2023

FY2024Phase II
Return on Investment &Profit Expansion• Cost structure reform through automation• Revolutionize esoteric testing operationConvert regional
1labs into STAT labs

New Kansai Lab• Establishment of Healthcare × ICT
related services
1. STAT: Short Turn Around20

Key Initiatives of “H.U. 2025”

1Launch of New Central Lab

2OEM business enhancement

3Healthcare × ICT21

New Central Lab in Akiruno, Tokyo
Operation start
General test: Jan. 2022
Esoteric test: May 2022

Testing capacity expansion
300,000ID/day (tripled)• Full automation of lab
operation• Renewal of IT system

Averaged COS
1
reduction/ID in FY2024
General test: -15%
Esoteric test: -7%

1. Impact from New Central Lab, compared to FY201922Fixed Cost Reduction and Profitability Improvement• Establish 3-site operation centered around theNew Central Lab• Small regional labs cover emergency needs

Profitability improvement
through cost optimization

New Central Lab•Consolidate general tests in Kantoarea•Consolidate esoteric tests nationwide

Small regional
LabNew Fukuoka Lab

New Kansai Lab• Conduct general tests• Reorganize labs in Fukuoka• Conduct general tests andsome esoteric tests
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OEM Business Enhancement••

Making a strategic shift towards growing OEM business
Strengthening OEM business utilizing our domestic Lumipulse track record and ourability to develop high quality raw material and reagents for immunoassay

Sales growth of OEM business(MUSD)

75

FY2009Supply from 3 sites

159FRE

CAGR
8%

1

FDJ

2

FDI

3

OEMpartners

FY2019
1. FRE: Fujirebio Europe N.V. 2. Fujirebio Diagnostics Japan, Inc.
3. FDI: Fujirebio Diagnostics Inc.

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Healthcare × ICT• Provide an ICT solution leveraging customer base as Japan’s largest clinical lab
12• Operate SaaS support system for GP
3• Connect PHR with SaaS for GP
Prevention（Mailing test, etc.）
Test data

Test data

Vital data

Daily
activities

Largest clinical lab
in Japan

Medicalcheckup

Test data

PHR

Home-visit
nursing

Medical data

Vital data

Operatingsupportsystemfor GP

Totalprovider

Test result
reportingsystem

GPHome care
1. SaaS: Software as a service

2. GP: General Practitioner

3. PHR: Personal Health Record

25Medium-term Consolidated Financial Targets
FY2024

For 5 years cumulative

6% or more

Operatingcash flow¥150 billion or more

EBITDAmargin

18% or more

Free cashflow2¥50 billion or more

OP margin

10% or more

Net sales
CAGR1

ROE

12% or more

ROIC

8% or more
1. 5 years CAGR during FY2019-FY2024

Annual free cash flow to turn
positive in FY2022

2. Lease is not included in investing cash flow

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Key Takeaways
Maximizing synergy between CLT and IVD to drive growth
Providing comprehensive services & products to fight against
COVID-19
Creating value through the execution of “H.U. 2025”
Expand into the healthcare arena27