Japan Medical Dynamic Marketing, Inc. · TSE:7600

Japan Medical Dynamic Marketing — FY2026 Earnings Presentation

39 slides from Japan Medical Dynamic Marketing's earnings presentation, May 13, 2026

1. Slide 1: Financial Results Briefing for the Fiscal Year Ending March 2026

   Japan Medical Dynamic Marketing, INC. Financial Results Briefing for the Fiscal Year Ending March 2026 May 13, 2026 President and Representative Director Toshiyuki Hironaka TSE Prime Market Securities code：7600 Copyright © Japan Medical Dynamic Marketing, INC. All Rights Reserved.

2. Slide 2: Table of Contents

   -Table of Contents- 1 ． Results for the FYE March 2026 P. 3 - New product information P.21 Key Factors Behind the Deterioration in the Cost-to-Sales - Consolidated net sales P. 4 - Ratio P.22 - Consolidated income statement P. 5 - Strengthening Compliance and Governance Frameworks P.24 - Comparison

3. Slide 3: Results for the Fiscal Year Ended March 31, 2026

   Results for the Fiscal Year Ended March 31, 2026 Our Product Segments Hip Joint Trauma Knee Joint Spine 3

4. Slide 4: Consolidated net sales

   Results for the FYE March 2026 Consolidated net sales Sales Ratio of 23,917 M yen change （YoY△4.8%） （Unit: million yen） 【After sales deductions】 Full-Year Consolidated Net Sales 30,000 25,000 23,917 M yen 20,000 Japan 【After sales deductions】 15,000 13,100 M yen （YoY△3.8％） 10,000 USA 【after conversi

5. Slide 5: Consolidated income statement

   Results for the FYE March 2026 Consolidated income statement FYE2026 YoY change FYE2025 （Unit : Millions of yen , ％） Ratio to Difference Ratio of Ratio to Actual sales in amount change Actual sales Net sales 23,917 100.0 △1,197 △ 4.8 25,114 100.0 Cost of sales 9,775 40.9 +307 +3.3 9,467 37.7 SG&A 13

6. Slide 6: Comparison of operating income with the previous year

   Results for the FYE March 2026 Comparison of operating income with the previous year Operating Operating profit declined from ¥1.55 billion in the previous fiscal year to ¥0.57 billion in the current fiscal year, a decrease of ¥0.98 billion year on year. profit The main factors behind this decline w

7. Slide 7: Consolidated net sales by major product

   Results for the FYE March 2026 Consolidated net sales by major product FYE2026 YoY change FYE2025 （Unit : Millions of yen , ％） Ratio to Difference in Ratio of Ratio to Actual sales amount change Actual sales Japan 13,109 54.8 △ 524 △ 3.8 13,634 54.3 Joint 4,904 20.5 △ 332 △ 6.4 5,237 20.9 Trauma 4,4

8. Slide 8: Japanese Market

   Japanese Market re SSS SSS Sees st

9. Slide 9: Total sales in Japan

   Japanese Market Total sales in Japan Sales Ratio of 13,109 M yen Review change （YoY△3.8%） 【After sales deductions】 （Unit: million yen）  Full-Year Net Sales in Japan 15,000  Due to a series of media reports, the number of cases 12,000 acquired declined at certain hospitals, particularly from 4Q onw

10. Slide 10: Domestic sales [Joint]

    Japanese Market Domestic sales [Joint] Sales Ratio of 4,904M yen Review change （YoY△6.4%） [Artificial Hip Joints] （Unit: million yen） For both THA (Total Hip Arthroplasty) and BHA (Bipolar Hip Arthroplasty), the number of cases acquired declined at certain 6,000 hospitals, particularly from 4Q onwar

11. Slide 11: Domestic sales [Trauma]

    Japanese Market Domestic sales [Trauma] Sales Ratio of 4,444M yen Review change （YoY△4.5%）  Key Products （Unit: million yen）  PHS (for femoral neck fractures): growth 5,000  ASULOCK (for trochanteric fractures): slight decline ODEV Other  Sales of Screws & Plates decreased due to shipment suspen

12. Slide 12: Domestic sales [Spine]

    Japanese Market Domestic sales [Spine] Sales Ratio of 3,493 M yen Review change （YoY△1.4％）  BKP: KMC Balloon Kyphoplasty Continued double-digit growth driven by market （Unit: million yen） expansion 4,000 ODEV Other  Pedicle Screw and other products — Decline in the number of cases acquired 3,000 M

13. Slide 13: U.S. Market

    U.S. Market 13

14. Slide 14: Total sales in U.S.

    U.S. Market Total sales in U.S. Sales Ratio of ＄71.5M Review change （YoY△5.0%）  YoY △3.7M US＄ （unit ： Million of dollars） 80  Due in part to supply constraints for artificial knee joint products, the number of cases acquired from 70 existing customers decreased. 60 50 40 30 【Average exchange rate

15. Slide 15: U.S. sales – Knee Joint

    U.S. Market U.S. sales – Knee Joint Sales Ratio of ＄47.5M Review change （YoY△8.5%）  BKS TriMax ： Slightly decreased （unit ： Million of dollars）  BKS Revision Knee ： Double-digit revenue decline 50 Inventory tightened due to delivery delays for certain outsourced components; recovery is expected fr

16. Slide 16: U.S. sales – Hip Joint

    U.S. Market U.S. sales – Hip Joint Sales Ratio of ＄23.2M Review change （YoY+2.0%）  Trivicta Hip Stem(a new product) ： Rapid growth （unit ： Million of dollars）  Entrada Hip Stem ： Decrease in number of cases acquired 30 New hip product: Trivicta Hip Stem • March 2024: FDA clearance obtained • Septe

17. Slide 17: Review of the FYE March 2026

    Review of the FYE March 2026 17

18. Slide 18: Key Results of Major Initiatives for FY2026 (Full Year)

    Review of the FYE March 2026 Key Results of Major Initiatives for FY2026 (Full Year) Region Details of Initiatives • Product Portfolio Review R&D • Accelerate new product development to expand the product lineup • Reduce manufacturing costs by strengthening in-house production capacity SAICO Project

19. Slide 19: SAICO Project: Status Update

    SAICO Project : Status Update An acronym for Strategic Actionable Initiatives for Cost Optimization. What is the SAICO Project? This project was launched with the objective of reducing costs across our group by strengthening in-house manufacturing capabilities and enhancing procurement capabilities.

20. Slide 20: SAICO Project: Status Update

    SAICO Project : Status Update 3.Cost Reduction and Risk Mitigation through Enhanced Procurement Capabilities Reduction in manufacturing costs through procurement from regions less affected by exchange rate fluctuations Femoral head for artificial hip joints New product “JMDM BIOCERAM AZUL Ceramic He

21. Slide 21: New Product Trivicta Hip Stem

    New Product Trivicta Hip Stem With growing demand in the US market, we aim to acquire new customers by introducing this new product with a triple taper shape. Triple Taper Sales across the U.S. have commenced from the 3rd quarter of the FYE Stem March 2026. 「Trivicta Hip Stem」 Sales commenced in Sep

22. Slide 22: Factors behind the deterioration in the cost of sales ratio

    Review of the FYE March 2026 Factors behind the deterioration in the cost of sales ratio Factors behind the deterioration in the cost of sales ratio: 40.9% (+3.2 pt YoY) SAICO Project Factors behind the deterioration in the cost of sales ratio Structural reform to address key challenges ・Manufacturi

23. Slide 23: Factors behind the deterioration in the cost of sales ratio

    Review of the FYE March 2026 Factors behind the deterioration in the cost of sales ratio The cost of sales ratio stood at 40.9%, representing a deterioration of 3.2 pt from 37.7% in the previous fiscal year. Cost of Sales In JMDM (domestic operations), the decline was mainly driven by a lower share

24. Slide 24: Strengthening of Compliance and Governance Framework

    Review of the FYE March 2026 Strengthening of Compliance and Governance Framework Strengthening of Compliance and Governance Framework  In response to a series of reported incidents, a special committee was established to conduct a root cause analysis. ・Insufficient internal controls, checks and ba

25. Slide 25: Results of sustainability initiatives

    Review of the FYE March 2026 Results of sustainability initiatives  GHG emissions (Scope 1 + 2) 1,444t, reduced by △525t（△27％）compared to the FYE March 2020  CDP 2025 Ratings： Climate Change “B” and Water Security “B-” awarded Reducing Respecting Human Rights Improving patient QOL Environmental Im

26. Slide 26: Forecast for the Fiscal Year Ending March 2027

    Forecast for the Fiscal Year Ending March 2027 26

27. Slide 27: Prerequisites

    Forecast for the FYE March 2027 Prerequisites Assumptions underlying the full-year earnings forecast for the FYE March 2027 Foreign Exchange Reduction in Amortized Exchange Rate (USD) Sensitivity Cost of Sales Cost 0 Operating Profit Impact: Impact of Reduced Amortized Cost of Sales Ratio: 41% FY202

28. Slide 28: (Interim) Consolidated income statements

    Forecast for the FYE March 2027 (Interim) Consolidated income statements （Unit : Millions of yen , ％） FYE2027 interim YoY change FYE2026 interim Ratio to Difference in Ratio of Ratio to Forecast sales amount change Actual sales Net sales 11,670 100.0 +59 +0.5 11,610 100.0 Cost of sales 4,790 41.0 +2

29. Slide 29: (Full Year) Consolidated income statement

    Forecast for the FYE March 2027 (Full Year) Consolidated income statement FYE2027 Full Year YoY change FYE2026 Full Year （Unit : Millions of yen , ％） Ratio to Difference in Ratio of Ratio to Forecast sales amount change Actual sales Net sales 25,370 100.0 +1,452 +6.1 23,917 100.0 Cost of sales 10,41

30. Slide 30: (Full Year) Consolidated sales by major product categories

    Forecast for the FYE March 2027 (Full Year) Consolidated sales by major product categories FYE2027 YoY change FYE2026 （Unit : Millions of yen , ％） Ratio to Difference in Ratio of Ratio to Forecast sales amount change Actual sales Japan 12,970 51.1 △ 139 △ 1.1 13,109 54.8 Joint 4,850 19.1 △54 △ 1.1 4

31. Slide 31: Major initiatives for the FYE March 2027

    Forecast for the FYE March 2027 Major initiatives for the FYE March 2027 In FY2027, we aim to drive top-line growth through the nationwide expansion of Trivicta in the U.S., the launch of our China business, and the enhancement of specialized capabilities in Japan. At the same time, we will promote

32. Slide 32: Action Plan to Improve Profitability of the U.S. Business

    Forecast for the FYE March 2027 Action Plan to Improve Profitability of the U.S. Business for the FYE March 2027 Achieve both revenue growth and profitability improvement through expansion of new product sales, recovery of procedure volumes for existing products, and supply stabilization Revenue Gro

33. Slide 33: Trends in Capital Expenditures, etc.

    Forecast for the FYE March 2027 Trends in Capital Expenditures, etc. Growth investment in surgical instruments to drive increased procedure adoption of the new product “ Trivicta ” FYE Mar FYE Mar FYE Mar FYE Mar FYE Mar （Unit: Millions of yen） 2023 2024 2025 2026 2027 Actual Actual Actual Actual Fo

34. Slide 34: Long-term VISION RT500 1st Stage Rolling Plan 2029

    Long-term VISION 「RT５００」 1st Stage Rolling Plan 2029 34

35. Slide 35: Quantitative Targets

    Rolling Plan 2029 Quantitative Targets Position FYE March 2027 as a turning point toward profitability improvement, aiming to reaccelerate revenue growth through new product introductions in the U.S. and recovery of procedure volumes, while improving profitability toward FY Ending March 2029 through

36. Slide 36: Key Strategic Initiatives for the Domestic Business

    Key Strategic Initiatives for the Domestic Business Toward Rolling Plan 2029 Achieving FYE March 2029 Targets FY Ending March 2027 – FY Ending March 2029 Aim to restore domestic revenue and profitability through enhanced specialization, new product introductions, SG&A efficiency improvements, and st

37. Slide 37: Key Strategic Initiatives for the U.S. Business

    Key Strategic Initiatives for the U.S. Business Rolling Plan 2029 Toward Achieving FYE 2029 Targets FY Ending March 2027 – FY Ending March 2029 The U.S. business aims to achieve both growth and profitability improvement through expansion of new product sales, cost reduction initiatives, and strength

38. Slide 38: Measures to Address Non-Compliance with TSE Prime Market Listing Requirements

    Measures to Address Non-Compliance Rolling Plan 2029 with TSE Prime Market Listing Requirements  The Company currently falls below the TSE Prime Market listing maintenance requirement of JPY 10 billion in tradable share market capitalization, and is therefore in a state of non-compliance. The Compa

39. Slide 39: Contributing to Medical Care Through Advanced Medical Devices

    Contributing to Medical Care Through the Development and Distribution of Advanced Medical Devices. Japan Medical Dynamic Marketing, INC. E-MAIL Web SITE Investor Relations Office ir@jmdm.co.jp https://www.jmdm.co.jp/en/ Notes The forward-looking statements in this document are based on information c

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