Slide 1: M3, Inc. Presentation Material July 2020
M3, Inc. Presentation Material July 2020 Copyright © 2020 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 Consolidated Results Summary
FY2020 Consolidated Results Summary Copyright © 2020 M3, Inc. All rights reserved. 2
Slide 4: FY2020 Q1 Consolidated Results
FY2020 Q1 Consolidated Results IFRS (mn yen) FY2019 Q1 FY2020 Q1 YoY Sales 30,766 35,478 +15% Operating +41% Profit 8,901 11,253 +26% growth ex-impact from Pre-tax stock Profit 8,917 11,222 +26% sales and valuation changes Net Profit 5,982 7,650 +28% Further acceleration in growth since April Copyri
Slide 5: FY2020 Q1 Consolidated Results by Segment
FY2020 Q1 Consolidated Results by Segment FY2019 FY2020 (mn yen) YoY Q1 Q1 +100% YoY Medical Sales 10,333 13,612 +32% profit growth Platform excluding Profit 3,643 6,200 +70% stock sales Sales 5,254 4,725 -10% impact Evidence Solution Profit 977 803 -18% Domestic Temporary Career Sales 5,545 5,369 -
Slide 6: FY2020 Q1 Consolidated Operating Profit Contribution Breakdown
FY2020 Q1 Consolidated Operating Profit Contribution Breakdown (mn yen) Large Temporary demand APAC decrease due to Demand growth COVID-19 expansion from Stock valuation pharma changes companies 18 -19 -174 678 -282 -426 2,557 2,352 11,253 8,901 FY19 Adjustment FY20 Copyright © 2020 M3, Inc. All rig
Slide 7: FY2020 Q1 Overview
FY2020 Q1 Overview COVID-19 Impact Medical Accelerated digital transformation in pharma marketing Platform Marketing service orders grew 2.5x yoy ++ Evidence Orders backlog remained healthy at 25 bn yen despite _ Solution partial halts in projects Career Dampened demand from both physician and pharm
Slide 8: COVID-19 Impact on M3
COVID-19 Impact on M3 Copyright © 2020 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 © 2020 M3, Inc. All rights reserved. 8
Slide 10: 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 © 2020 M3, Inc. All rights reserved. 9
Slide 11: m3.com Site Access Increase
m3.com Site Access Increase COVID-19 Related Information Provision m3.com Access Increase (% yoy) 160% Focused delivery 150% of related news 140% Proactive 130% information 120% exchange across 110% PtoP communities 100% Expert webinars 90% regarding COVID- Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 examination FY18 F
Slide 12: 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 © 2020 M3, Inc. All rights reserved. 11
Slide 13: Physician Preferences As of July, 2020
Physician Preferences As of July, 2020 Marketing Support 75% of physicians prefer current conditions of higher digital information procurement …this shift in behavior and sentiment is likely to remain Q. How do you feel regarding the current increase in internet based information procurement compare
Slide 14: Marketing Support Service Orders
Marketing Support Service Orders Marketing Support Marketing Support Service Orders Rapid demand increase from pharmaceutical companies due to over COVID-19 Sales team fortification 2.5x (+47% yoy including external resource utilization) contributing to larger projects Fortification of project execu
Slide 15: LINE Healthcare Expansion
LINE Healthcare Expansion Telemedicine & AI Over 6.0 million “friends” (since launch in Dec 2019) Adopted to support METI’s remote health consultations hotline until the end of August LHC reimbursable online consultation services scheduled for launch reimbursed Copyright © 2020 M3, Inc. All rights r
Slide 16: Early COVID-19 Detection with CT + AI
Early COVID-19 Detection with CT + AI Telemedicine & AI Medical image analysis software, “COVID-19 Pneumonia Image Analysis Program Ali-M3” manufacturing and distribution approval gained in 80 days! (1/9 of usual speed) Diagnosis Accuracy Using CTs AI Based CT Analysis Accuracy n=51 (patients examin
Slide 17: Launch of AI Platform Business
Launch of AI Platform Business Telemedicine & 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
Slide 18: Rapid Increase in AI Projects (1/2)
Rapid Increase in AI Projects (1/2) Telemedicine & 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 Ven
Slide 19: Rapid Increase in AI Projects (2/2)
Rapid Increase in AI Projects (2/2) Telemedicine & 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
Slide 20: COVID-19 Impact on M3 (Negative)
COVID-19 Impact on M3 (Negative) Clinical Trials (Evidence Solution) – Temporary suspension in trial execution – Potential for demand expansion from new R&D activity once conditions normalize – COVID-19 vaccine related trials expected to increase demand in the US Stroke Rehabilitation (Medical Platf
Slide 21: Change in Growth Pace (current starting point)
Change in Growth Pace (current starting point) Business Trend Image Combined Business Impact Short term neutral overall, structural changes expected to be largely positive for the mid to long term Copyright © 2020 M3, Inc. All rights reserved. 20
Slide 22: 1 Billion Yen M3: Stop COVID-19 Fund
1 Billion Yen “M3: Stop COVID-19 Fund” Appropriated 1 Billion Yen in funds to support COVID- 19 related initiatives Utilize all M3 group resources to execute various initiatives serving medical professionals, medical institutions, and the general public Name M3： Stop COVID-19 Fund Total Funds Maximu
Slide 23: M3's COVID-19 Initiatives (examples)
M3’s COVID-19 Initiatives (examples) Free LINE Healthcare Webinars for Physicians Free PPE Distribution Masks: 2,000,000 Face Shields: 80,000 Free Remote Meeting Free COVID-19 Image Service for Patients Diagnostics “Ali-M3” Copyright © 2020 M3, Inc. All rights reserved. 22
Slide 24: Free Remote Meetings: 1 Button Video Chat Device Sets
Free Remote Meetings: 1 Button Video Chat Device Sets COVID-19 Related Visitation Restrictions Patient @ Patient’s Hospital Family @ n=338 medical sites Home No restrictions Removed 10% restrictions 5% 1-患者 1-家族 Restricted I was ecstatic that I could clearly see the details of my Relaxed Previous 43
Slide 25: M3 Growth Strategy
M3 Growth Strategy Copyright © 2020 M3, Inc. All rights reserved. 24
Slide 26: 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) ： 140 → 370 (2.5x) → 945 (7x) →
Slide 27: Annual Results
Annual Results Sales Operating Profit & Net Profit 130,973 34,337 (mn yen) (mn yen) 30,800 113,059 27,486 Operating Profit 94,471 Net Profit 25,050 24,153 21,346 78,143 20,022 19,225 64,660 16,938 16,061 51,346 13,738* 13,493 10,428 36,759 9,294 8,878* 7,648 26,007 6,031 5,598 19,040 4,803 4,492 14,