M3, Inc. · TSE:2413
M3 — Q3 FY2020 Earnings Presentation
27 slides from M3's earnings presentation, Jan 29, 2021
Slide 1: M3, Inc. Presentation Material January 2021
M3, Inc. Presentation Material January 2021 Copyright © 2021 M3, Inc. All rights reserved.
Slide 2: Forward-looking statements disclaimer
The following presentation contains forecasts, future plans, management targets and other forward-looking projections relating to M3, Inc. and/or its group. These statements are drawn from assumptions of future events based on data currently available to us, and there exist possibilities that such a
Slide 3: FY2020 Q3 Consolidated Results Summary
FY2020 Q3 Consolidated Results Summary Copyright © 2021 M3, Inc. All rights reserved. 2
Slide 4: FY2020 Q3 Consolidated Results
FY2020 Q3 Consolidated Results IFRS FY2019 FY2020 (mn yen) YoY Q1-Q3 Q1-Q3 Sales 96,319 123,750 +28% +72% Operating growth Profit 26,933 42,468 +58% excluding impacts such as Pre-tax stock Profit 27,003 42,481 +57% sales and valuation changes Net Profit 18,616 29,507 +59% Profit increase accelerated
Slide 5: FY2020 Q3 Consolidated Results by Segment
FY2020 Q3 Consolidated Results by Segment FY2019 FY2020 (mn yen) YOY Q1-Q3 Q1-Q3 +108% YoY profit growth Medical Sales 36,986 55,629 +50% excluding impact Platform such as stock Profit 14,114 27,469 +95% sales Evidence Sales 15,942 14,427 -10% Solution Profit 3,335 2,648 -21% Temporary Domestic dema
Slide 6: FY2020 Q3 Consolidated Operating Profit Contribution Breakdown
FY2020 Q3 Consolidated Operating Profit Contribution Breakdown (mn yen) COVID related demand expanded in APAC and US/EU Temporary Demand demand decrease expansion from due to COVID-19 pharma Stock valuation companies changes Strong 1,050 -76 -273 -686 3,717 -1,553 13,356 Investment in LINE 15,536 He
Slide 7: FY2020 Q3 Overview
FY2020 Q3 Overview COVID-19 Impact Medical Accelerated digital transformation in pharma marketing Platform Continued recovery also of other businesses outside of ++ marketing support services Evidence Orders backlog remained steady at 22.5 bn yen despite _ Solution partial halts in projects due to C
Slide 8: COVID-19 Impact on M3
COVID-19 Impact on M3 Copyright © 2021 M3, Inc. All rights reserved. 7
Slide 9: COVID-19 Impact on M3
COVID-19 Impact on M3 Structural changes in pharmaceutical marketing Structural changes in clinical scene… telemedicine, AI diagnostics Clinical Trials Y’s Rehabilitation Center Hospital Management Support Home Care Nursing Career Copyright © 2021 M3, Inc. All rights reserved. 8
Slide 10: m3.com Site Access Increase
m3.com Site Access Increase COVID-19 Related Information Provision m3.com Access Increase (% yoy) Focused delivery of related news +46% Proactive information exchange across PtoP communities Expert webinars regarding COVID- FY2019 FY2020 19 examination Q1-Q3 Q1-Q3 m3.com site access remains high aft
Slide 11: Pharma Marketing Business Growth Pace
Pharma Marketing Business Growth Pace Marketing Support Pre COVID-19 During COVID-19 Post COVID-19 100km/hr 250km/hr 120km/hr Copyright © 2021 M3, Inc. All rights reserved. 10
Slide 12: Reality of MR activities
Reality of MR activities Marketing Support Channel Breakdown of Communication Changes Experienced by MRs During 2020 Between Pharma to Physicians Answered by MRs belonging to pharmaceutical companies Results from top 10 pharma companies with the highest Conducted in November, 2020, n=100 physician c
Slide 13: Pharma Marketing Cost and TAM for M3 Marketing Support
Pharma Marketing Cost and TAM for M3 Marketing Support Present Future Industry productivity improvement from DX MR Related Costs MR Related Costs 98% 1.5 trillion yen 700~800 billion yen 70~80% Internet Internet 30 billion yen 20~ 30% 200~300 billion yen M3 share: 80~90% 2% M3 share: 80~90% MR relat
Slide 14: Marketing Support Service Orders
Marketing Support Service Orders Marketing Support Rapid demand increase from pharmaceutical companies due to Over COVID-19 2.5x Sales team fortification & larger projects (+115% yoy sales and delivery staff including external resource FY2019 FY2020 utilization) Q1-Q3 Q1-Q3 Orders remain high with f
Slide 15: Launch of AI Platform Business
Launch of AI Platform Business AI NOBORI Cloud Business alliance with NOBORI ･･･ providing medical cloud services Secure image AI diagnosed Connectivity with any upload image PACS (medical image download management system) Medical Site Multiple AI image ＰＡＣＳ diagnostic algorithms will be on-boarded
Slide 16: AI Platform Algorithms
AI Platform Algorithms AI Pulmonary VUNO Med®-LungCT nodule shadow by Pulmonary EIRL Chest nodule nodules by COVID-19 Ali-M3 pneumonia by & Cerebral EIRL aneurysm aneurysm by New algorithms continue to onboard M3’s AI platform Copyright © 2021 M3, Inc. All rights reserved. 15
Slide 17: Rapid Increase in AI Projects (1/2)
Rapid Increase in AI Projects (1/2) AI M3 Services Company Therapy Area M3 Respiratory M3 Diabetic Retinopathy Ｍ３ M3 Ostheoperosis Lead M3 Medical institution (overseas) M3 COVID-19 M3 Lung Cancer AI Venture Thyroid Echo AI Venture Radiation Diagnosis AI Venture Coronary Artery AI Venture Coronary A
Slide 18: Rapid Increase in AI Projects (2/2)
Rapid Increase in AI Projects (2/2) AI M3 Services Company Therapy Area AI Venture Influenza AI Venture Unruptured Cerebral Aneurysm AI Venture Insomnia Academia Respiratory AI Venture Gastrointestinal Device Maker Fundoscopy Device Maker Gastrointestinal Surgery AI Venture Alzheimers AI Venture Flu
Slide 19: US Clinical Trial Business Update
US Clinical Trial Business Update Overseas COVID-19 Related Trials Vaccine Vaccine COVID-19 related trial Vaccine orders: several billion Treatment yen Vaccine Current high pace expected to remain Treatment high for the fiscal year Vaccine Vaccine … Post COVID-19 pipeline also healthy due to site an
Slide 20: LINEDoctor
LINEDoctor Telemedicine First wave telemedicine service launch in Tokyo metropolitan area PDCA based improvements to be made based on first wave LINE character “Brown” to adorn starter kits at clinics Provision of familiar and reliable telemedicine services. Full scale roll-out in Spring Copyright ©
Slide 21: Change in Growth Pace (start point: pre-COVID)
Change in Growth Pace (start point: pre-COVID) Business Trend Image Aggregate Impact Larger positive impact than expected Current outlook Initial outlook Structural changes progressing faster than expected Short term neutral overall, structural changes expected to be largely positive for the mid to
Slide 22: M3 Growth Strategy
M3 Growth Strategy Copyright © 2021 M3, Inc. All rights reserved. 21
Slide 23: Business Scope Expansion and Growth Potential
Business Scope Expansion and Growth Potential 2010 2014 2018 2022 Country ： 3 → 5 (1.5x) → 10 (3x) → Similar pace Business Types ： 6 → 10 (1.5x) → 26 (4x) → of growth expected Business Units (Type x Country) ： 10 → 18 (2x) → 41 (4x) → over the next 4 years Sales (bn) ： 14 → 37 (2.5x) → 94.5 (7x) → A
Slide 24: Business Growth in India
Business Growth in India Operating multi-layered businesses leveraging M3 India, with the access to the 450,000 physician members, covering almost half of doctors in India Strong momentum in marketing support, research and physician e-learning businesses, partly due to COVID-19 Higher profit margin
Slide 25: Collaboration with Non-Pharma Corporates
Collaboration with Non-Pharma Corporates Company Related Assets Synergistic M3 Services Versatile New service technologies: development to inspire PS5, AI, VR, sensing the medical scene Extensive Corporate health corporate network management business (empheal) expansion (client base) 80 million Uniq
Slide 26: Joint Project with SONY
Joint Project with SONY COMPASS Project Joint project between SONY and M3 announced on Dec 14, 2020. Donation towards COVID-19 initiatives Healthcare business creation utilizing on SONY technologies Open innovation through idea recruitment from physicians and joint research initiatives with medical
Slide 27: Annual Results
Annual Results Sales Operating Profit & Net Profit (mn yen) 123,750 (mn yen) 130,973 42,468 Operating Profit 113,059 Net Profit 34,337 94,471 30,800 29,507 27,486 78,143 25,050 24,153 64,660 21,346 20,022 19,225 51,346 16,061 16,938 13,738 13,493 36,759 10,428 26,007 9,294 8,878 19,040 7,648 6,031 5