Slide 1: M3, Inc. Presentation Material
M3, Inc. Presentation Material February 2025 0
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: FY2024 Q1-Q3 Consolidated Results
FY2024 Q1-Q3 Consolidated Results FY2023 FY2024 Unit: JPY MM YoY Q1 - Q3 Q1 - Q3 YoY growth excluding COVID Revenue 179,189 205,521 +15% related revenues, sales +19% Operating profit 54,963 50,101 -9% Profit before tax 57,325 52,513 -8% Profit 38,914 35,535 -9% Q3YTD results were in line with the ex
Slide 4: Consolidated Revenue Trend and COVID Impact
Consolidated Revenue Trend and COVID Impact Unit: JPY MM 205,521 COVID related ～2,700 (clinical trials, 175,155 179,189 vaccination support, promotion of 154,169 ～8,400 therapeutic drugs and ～20,800 +19% vaccines, etc.) ～16,400 123,750 Regular businesses FY2020 FY2021 FY2022 FY2023 FY2024 Q1 - Q3 Q1
Slide 5: FY2024 Q1-Q3 Consolidated Results by Segment
FY2024 Q1-Q3 Consolidated Results by Segment Pharma marketing: The impact FY2023 FY2024 of a decline in COVID-related Unit: JPY MM YoY Q1-Q3 Q1-Q3 sales drove revenue decline, but the fundamental DX is still Medical Revenue 71,480 68,397 -4% progressing Other businesses such as DX Platform Profi
Slide 6: FY2024 Q1-Q3 Forecasts vs. Actuals
FY2024 Q1-Q3 Forecasts vs. Actuals Revenue Operating profit Initial Forecasts* ~201.0 Bn ~49.0 Bn MPF ES CS SS PS Overseas Other / Adjustments FY2024 Q1-Q3 Act 205.5 Bn 50.1 Bn While MPF and ES slightly fell short, solid performance in SS and newly established PS contributed to the overall revenue a
Slide 7: Growth Rate and COVID Relationship in FY2024
Growth Rate and COVID Relationship in FY2024 Before COVID During COVID Repercussion Normalized Organic Growth Rate 20km/h 20km/h 20km/h 20km/h COVID-19 Impact 20km/h 20km/h 20km/h 40km/h 0km/h 20km/h In Total… MPF CS Status per Overseas Segment ES SS Currently, each segment and business is in a diff
Slide 8: Growth Rate and COVID Relationship in FY2025
Growth Rate and COVID Relationship in FY2025 Before COVID During COVID Repercussion Normalized Organic Growth Rate 20km/h 20km/h 20km/h 20km/h COVID-19 Impact 20km/h 20km/h 20km/h 40km/h 0km/h 20km/h In Total… MPF CS Status per ES Segment SS Overseas The negative impact of COVID is to finish in FY20
Slide 9: M3's Triple Growth Engine + CSV
M3’s Triple Growth Engine + CSV 1. Ecosystem 2. Individual 3. Ecosystem Expansion Business Synergy (Sagrada Familia) Development Creation Regions (12 areas) Regions (12 areas) Regions (12 areas) １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 ＭＰ ＭＰ ＭＰ Businesses (30 - 50) Bus
Slide 10: Growth Engine 1: Ecosystem Expansion (Sagrada Familia)
Growth Engine 1： Ecosystem Expansion (Sagrada Familia) Regions (12 areas) Regions (12 areas) Regions (12 areas) １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 ＭＰ ＭＰ ＭＰ Businesses (30 – 50) Businesses (30 – 50) Businesses (30 – 50) CS ＳＳ ＥＳ CS ＳＳ ＥＳ CS ＳＳ ＥＳ Others Others Oth
Slide 11: Business Scope Expansion and Growth Potential
Business Scope Expansion and Growth Potential FY ： 2010 2015 2020 2023 Country ： 3 → 8 （2.5x） → 11 （3.5x） → 17 （5.5x） Business Types ： 6 → 15 （2.5x） → 35 （6.0x） → 38 （6.0x） Business Units (Type x Country) ： 10 → 24 （2.5x） → 56 （5.5x） → 73 （7.0x） Sales (bn) ： 14.6 → 64.7 （4.5x） → 169.2 （12.0x） → 238.
Slide 12: Trend in M&A Volume: Programmatic M&A Strategy
Trend in M&A Volume: Programmatic M&A Strategy 13* 11 11 10 Domestic 5 5 3 9 Overseas 6 6 7 4 FY2021 FY2022 FY2023 FY2024 As of Q3 Earnings Release M&A is completed with approximately 10 companies annually. For FY2024, in addition to Infrastructure for On Call Cooperation, Medcare, and MinaCare, the
Slide 13: Impact of ELAN Acquisition
Impact of ELAN Acquisition Consolidation started from Q3 – Newly established the Patient Solution segment – Contribution in operating profit was more than JPY 100MM even with the acquisition cost Progress of Synergy Creation – [Short Term] Started initiatives such as sales collaboration – [Mid-to-
Slide 14: Growth Engine 2: Individual Business Development
Growth Engine 2： Individual Business Development Regions (12 areas) Regions (12 areas) Regions (12 areas) １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 ＭＰ ＭＰ ＭＰ Businesses (30 – 50) Businesses (30 – 50) Businesses (30 – 50) Businesses (30 – 50) CS ＳＳ ＥＳ CS ＳＳ ＥＳ CS ＳＳ ＥＳ Ot
Slide 15: Pharmaceutical Sales & Marketing DX
Pharmaceutical Sales & Marketing DX 14
Slide 16: Pharma Marketing Cost and TAM for M3
Pharma Marketing Cost and TAM for M3 10 years ago Present Future M3’s Role down by ~300 bn yen TAM Industry productivity improvement from DX MR Related 99% 1.5 tn yen 95% 70～80% Costs 1.15 tn yen 700～ (2) MR Activity 800 bn yen DX Support (3) Data-driven Marketing (1) Internet Support 20～30% Marketi
Slide 17: Trend of Domestic Pharmaceutical Sales Reps (MRs)
Trend of Domestic Pharmaceutical Sales Reps (MRs) (10,000) Historical Peak 7 65,752 MRs -1,095 -522 -950 -752 46,719 MRs -2,533 in FY2023 6 -2,742 (Second largest decline ever) -3,572 -1,738 -2,166 5 -2,963 4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 In addition
Slide 18: Current Status of Pharmaceutical Marketing
Current Status of Pharmaceutical Marketing Demand and Its Trend ＣＯＶＩＤ-19 Future During COVID After COVID • Advancement of structural digital transformation (DX) Structural changes • Further penetration of data- driven marketing Sales • Projects on a larger scale Now • Temporary decline in demand dur
Slide 19: As a Strategic Partner to Pharma Companies
As a Strategic Partner to Pharma Companies Overall Trend Efforts for Renewed Growth Rejuvenate and strengthen leadership ＣＯＶＩＤ-19 Our Products Future Continual development of services During COVID After COVID that dramatically improve the productivity of pharmaceutical company sales and marketin
Slide 20: DX of the Clinical Scene
DX of the Clinical Scene Copyright © 2025 M3, Inc. All rights reserved. 19
Slide 21: M3 DigiKar EHR Growth
M3 DigiKar EHR Growth Number of Medical Institutions Using M3 DigiKar 7,300 Cumulative number of installations is approx. 7,300. Steady progress Co-selling with DigiKarSmart further increases the added value of DigiKar FY15 16 17 18 19 20 21 22 23 24 Incontestable #1 market share within cloud-ba
Slide 22: DX of Clinics: DigiKar Smart
DX of Clinics： DigiKar Smart Physical Medical Institutions： Online Managing System Appointment Next Auto- Appointment Reception Patients： M3 DigiKar Smart Mobile App Payment Consultation Linking to EHR 44,000 reviews with a rating of 4.6 from users, a new patient experience created, and a high ratin
Slide 23: No. of DigiKar Smart Users
No. of DigiKar Smart Users Unit: Index with FY2021Q3 as 1 9,437 7,089 Rapid market penetration of DigiKar Smart as the clinics' 5,673 infrastructure 4,741 # of Users: 2.2x YoY 4,320 Txn Amount: 3.2x YoY 2,973 Video call has been added and is 2,067 expanding as an 1,368 infrastructure for 1,070 4
Slide 24: Overseas
Overseas Copyright © 2025 M3, Inc. All rights reserved. 23
Slide 25: Number of Doctor Members and Panelists (Global)
Number of Doctor Members and Panelists (Global) Ratio of doctor members (As of June 2024) Including regions not mentioned above, more than 6.5 million doctor members and panelists, covering over 50% of doctors worldwide *The no. of doctors in Japan is based on data from the Ministry of Health, Labou
Slide 26: Overseas Segment: Sales by Region
Overseas Segment: Sales by Region Unit: JPY MM Growth Rate North America 60,914 +17% * ~10% excl. currency Continued strong performance tailwinds Clinical trial business: 52,108 Strengthening management base and muscularization in 23,333 +15% progress for recovery in growth. North Confirmed impr
Slide 27: Growth Engine 3: Ecosystem Synergy Creation
Growth Engine 3： Ecosystem Synergy Creation Regions (12 areas) Regions areas) Regions (12 areas) Regions (12 areas) １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 ＭＰ ＭＰ ＭＰ Businesses (30 – 50) Businesses (30 – 50) Businesses (30 – 50) Businesses ( Businesses (30 – 50) CS ＳＳ
Slide 28: Business Scope Expansion and Growth Potential
Business Scope Expansion and Growth Potential FY ： 2010 2015 2020 2023 Country ： 3 → 8 （2.5x） → 11 （3.5x） → 17 （5.5x） Business Types ： 6 → 15 （2.5x） → 35 （6.0x） → 38 （6.0x） Business Units (Type x Country) ： 10 → 24 （2.5x） → 56 （5.5x） → 73 （7.0x） Sales (bn) ： 14.6 → 64.7 （4.5x） → 169.2 （12.0x） → 238.
Slide 29: Cross-Business Synergy Creation Potential
Cross-Business Synergy Creation Potential １ ２ ３ ４ ・・・ ｎ Number of businesses Synergy Links 0 1 3 6 nC2 Synergy potential between businesses: 73Ｃ2 = 2,628 possible linkages 28
Slide 30: The White Jack Project
“The White Jack Project” Phase 1 Happiness-i Pre-Onset/ After Onset/ Healthy Person Patient Rinkai Phase 2 General Public Medical (consumer) Future expanding Cancer Phase 3 Prevention priority areas Phase 4 ＥＢＨＳ HCP (e.g. wholesaler) Phase 5 Traditional main business domain Phase 6 Medcare Phase 7 M
Slide 31: Expand Coverage of Enterprise Services
Expand Coverage of Enterprise Services Number of Employees Covered by Covers approximately 2.8 Enterprise Services million employees in FY24Q3, with the following Unit: 10,000 persons 280 services EBHS Life 203 Cancer prevention, PSP Ask Doctors Booking & conducting Approx. medical check-ups
Slide 32: KPI Trend of Main Services
KPI Trend of Main Services # of Accounts for Employee Health Data # of Client Worksites for the Occupational Management Service(1) Physician Dispatch Service(2) Unit: Index with the end of FY22 as 100 Unit: Index with the end of FY22 as 100 200 179 Approx.2.0x Approx.1.8x 100 100 End of FY22 FY24Q3
Slide 33: Social Impact Creation
Social Impact Creation Regions (12 areas) Regions areas) Regions (12 areas) Regions (12 areas) １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 １ ２ ３ ４ ５ ６ ７ ８ ９ 10 11 ＭＰ ＭＰ ＭＰ Businesses (30 – 50) Businesses (30 – 50) Businesses (30 – 50) Businesses (30 – 50) Businesses ( Businesses (30 – 50) CS ＳＳ
Slide 34: SDGs and CSV: M3's CSV positioning
SDGs and CSV: M3's CSV positioning ＳＤＧｓ ＣＳＶ Sustainable Development Goals Creating Shared Value (Development goals which are possible to sustain) (Creation of shared values) International objectives that Initiatives by companies to solve governments, businesses and social problems through their core
Slide 35: FY2024 Outlook
FY2024 Outlook Copyright © 2025 M3, Inc. All rights reserved. 34
Slide 36: Annual Results and Forecasts
Annual Results and Forecasts Revenue Operating Profit Unit: JPY MM Unit: JPY MM 273,000 ~268,000 Operating profit* 95,141 Medlive IPO Impact 238,883 230,818 208,159 71,983 70,000 ~67,000 64,210 64,381 169,198 57,972 130,973 113,059 34,337 94,471 30,800 78,143 27,486 64,660 25,050 20,022 51,346 16,06
Slide 37: Copyright All rights reserved.
Copyright © 2025 M3, Inc. All rights reserved. 36