Japan Medical Dynamic Marketing, Inc. · TSE:7600

Japan Medical Dynamic Marketing — FY2025 Earnings Presentation

38 slides from Japan Medical Dynamic Marketing's earnings presentation, May 14, 2025

  1. Slide 1: Financial Results Briefing for the Fiscal Year Ending March 2025

    Financial Results Briefing for the Fiscal Year Ending March 2025 May 14, 2025 Representative Director and President 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 2025 P. 3 - Results of FYE March 2025 for major initiatives P.19 - Consolidated net sales P. 4 - New product information P.20 - Consolidated income statement P. 5 - SAICO Project progress report P.23 Comparison of operating income with the - Strength

  3. Slide 3: Results for the Fiscal Year Ended March 31, 2025

    Results for the Fiscal Year Ended March 31, 202５ Our Product Segments Hip Joint Trauma TSE Prime Market Securities code：7600 Knee Joint Spine 3

  4. Slide 4: Consolidated net sales

    FYE Mar. 2025 Results Consolidated net sales Sales Ratio of 25,114 M yen change （YoY＋8.4%） （Unit: million yen） 【After sales deductions】 Record consolidated net sales of… 30,000 25,000 25,114Myen 20,000 Japan 【After sales deductions】 15,000 13,６３４ M yen （YoY＋4.8％） 10,000 USA 【after conversion to yen】

  5. Slide 5: Consolidated income statement

    FYE Mar. 2025 Results Consolidated income statement FYE2025 YoY change FYE2024 （Unit : Millions of yen , ％） Ratio to Difference Ratio of Ratio to Actual sales in amount change Actual sales Net sales 25,114 100.0 +1,936 +8.4 23,177 100.0 Cost of sales 9,467 37.7 +1,051 +12.5 8,415 36.3 SG&A 14,090 56

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

    Comparison of operating income with the FYE Mar. 2025 Results previous year Operating Although gross profit increased by 10 billion yen due to higher sales, operating income decreased by 1.9B yen profit due to a deterioration in cost of sales, the impact of the yen's depreciation on ODEV product pur

  7. Slide 7: Comparison of operating income to the initial forecast

    FYE Mar. 2025 Results Comparison of operating income to the initial forecast Operating Despite savings in SG&A expenses (down 3.9B yen), gross profit decreased by 3.9B yen due to profit lower sales in the United States and an increase in manufacturing overhead expenses at ODEV 15.5B yen (2.4B yen),

  8. Slide 8: Consolidated net sales by major product

    FYE Mar. 2025 Results Consolidated net sales by major product FYE2025 YoY change FYE2024 （Unit : Millions of yen , ％） Ratio to Difference Ratio of Ratio to Actual sales in amount change Actual sales Japan 13,634 54.3 +629 +4.8 13,004 56.1 Joint 5,237 20.9 +304 +6.2 4,932 21.3 Trauma 4,653 18.5 +90 +

  9. Slide 9: Japanese Market

    Japanese Market 9

  10. Slide 10: Total sales in Japan

    Japanese Market Total sales in Japan Sales Ratio of 13,６３４ M yen Review change （YoY＋4.8%） 【After sales deductions】 （Unit: million yen）  Full-year record high sales 15,000 The number of cases increased in all the product categories, 12,000 resulting in a year-on-year increase of 629 M yen (+4.8%) 9,

  11. Slide 11: Domestic sales [Joint]

    Japanese Market Domestic sales [Joint] Sales Ratio of 5,23７ M yen Review change （YoY＋6.2%） [Hip Joints] YoY Growth Increase in the number of cases driven by new （Unit: million yen） customer acquisitions by Promontory Hip Stem, the 6,000 new product *1 BHA：Bipolar ODEV BHA *1 is growing at double dig

  12. Slide 12: Domestic sales [Trauma]

    Japanese Market Domestic sales [Trauma] Sales Ratio of ４,６５３ M yen Review change （YoY＋2.0%）  Products for femoral neck fracture （Unit: million yen） PHS(own product) ： Continuing a double- 5,000 digit growth ODEV Other  ASULOCK (Other companie’s product) ： 4,000 No growth due to intensifying compet

  13. Slide 13: Domestic sales [Spine]

    Japanese Market Domestic sales [Spine] Sales Ratio of 3,543 M yen Review change （YoY＋6.7％）  BKP：KMC Balloon Kyphoplasty (Other company’s product) : Double-digit growth （Unit: million yen） accompanied by the market expansion 4,000  New Linceα, Plate Lince Plate (Other ODEV Other company’s product)

  14. Slide 14: U.S. Market

    U.S. Market 14

  15. Slide 15: Total sales in U.S.

    U.S. Market Total sales in U.S. Sales Ratio of ＄75.2M Review change （YoY＋6.9%）  Full-year sales record （unit ： Million of dollars） achieved 80 (YoY +4,830K US dollars) 70  New customers acquired in the previous 60 and current fiscal years contributed to an increase in the number of cases 50  Due

  16. Slide 16: U.S. sales – Knee Joint

    U.S. Market U.S. sales – Knee Joint Sales Ratio of ＄51.8M Review change （YoY＋9.4%）  BKS TriMax ： Double digit growth In addition to new customers, increased cases from （unit ： Million of dollars） existing customers contributed to the growth 50  BKS Uni ： In good Performance In addition to the cust

  17. Slide 17: 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）  Alpine Hip Stem、Ovation Tribute Stem 30 ： Continued to grow  Entrada Hip Stem ： Number of cases decreased obtained decreased Major produc

  18. Slide 18: Review of the Fiscal Year Ended March 2025

    Review of the Fiscal Year Ended March 2025 TSE Prime Market Securities code：7600 18

  19. Slide 19: Results of FYE March 2025 for major initiatives

    Review of the FYE March 2025 Results of FYE March 2025 for major initiatives Area Details of Initiatives  Product Portfolio Review Development  Accelerate new product development to expand product lineup SAICO Project Status  Reduction of manufacturing costs by strengthening in-house production P

  20. Slide 20: New Hip Joint Product: Promontory Hip Stem

    New Hip Joint Product 【Promontory Hip Stem】 【Promontory Hip Stem】 Sales started in September 2022 【Features of this product】 「Promontory Hip Stem」  The cross-sectional shape of the stem is rectangular, and the corners of the cross section bite into the medullary cavity of the femur, enabling secure

  21. Slide 21: New Hip Joint Product: Ovation Tribute NEO Stem

    New Hip Joint Product 【Ovation Tribute NEO Stem】 New product with a new concept has been added to our line of hip joint products in the Japanese market, and we expect to expand domestic sales driven by this product 【Features of this product】 「Ovation Tribute NEO Stem」  Developed for curing Japanese

  22. Slide 22: New Hip Joint Product: Trivicta Hip Stem

    New Hip Joint 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 Stem 【Features of this product】  Stem type with three tapered plane 「Trivicta Hip Stem」 （Starting Sales in Septembe

  23. Slide 23: SAICO Project progress report

    SAICO Project progress report Strategic Actionable Initiatives for Cost Optimization A project launched by our group with the aim of reducing costs by What is the SAICO Project? strengthening our in-house manufacturing capabilities and procurement capabilities １．Reduction of manufacturing costs by ２

  24. Slide 24: SAICO Project progress report

    SAICO Project progress report ２-2．Cost reduction and risk mitigation ２-3．Cost reduction and risk mitigation through enhanced procurement capabilities through enhanced procurement capabilities Reduction in manufacturing costs through Supply of Chinese-made medical procurement from regions less affect

  25. Slide 25: Strengthening compliance management

    Review of the FYE March 2025 Strengthening compliance management Addressing issues related to the resolution of lawsuits claiming damages through settlements at our subsidiary  We take the lawsuit filed by our U.S. subsidiary (the “Lawsuit”) very seriously, and analyzed the root causes of the event

  26. Slide 26: Results of sustainability initiatives

    Review of the FYE March 2025 Results of sustainability initiatives  GHG emissions (Scope 1 + 2) 1,555 t, reduced by 414 t (▲21%) compared to the FYE March 2020  CDP 2024 Ratings： Climate Change “B” and Water Security “B-” awarded Reducing Respecting Human Rights Improving patient QOL Environmental

  27. Slide 27: Forecast for the Fiscal Year Ending March 2026

    Forecast for the Fiscal Year Ending March 2026 TSE Prime Market Securities code：7600 27

  28. Slide 28: Prerequisites

    Forecast for the FYE March 2026 Prerequisites Assumptions underlying the full-year earnings forecast for the FYE March 2026 Exchange Rate Exchange Rate Reimbursement Price Manufacturing cost （US＄） Fluctuation Impact Reductions 0 Approximately No Impact from the Trump administration's Assumed exchang

  29. Slide 29: (Interim) Consolidated income statements

    Forecast for the FYE March 2026 (Interim) Consolidated income statements （Unit : Millions of yen , ％） FYE2026 interim YoY change FYE2025 interim Ratio to Difference in Ratio of Ratio to Forecast sales amount change Actual sales Net sales 12,250 100.0 +432 +3.7 11,817 100.0 Cost of sales 4,550 37.1 +

  30. Slide 30: (Full Year) Consolidated income statement

    Forecast for the FYE March 2026 (Full Year) Consolidated income statement FYE2026 Full Year YoY change FYE2025 Full Year （Unit : Millions of yen , ％） Ratio to Difference in Ratio of Ratio to Forecast sales amount change Actual sales Net sales 26,400 100.0 +1,285 +5.1 25,114 100.0 Cost of sales 9,750

  31. Slide 31: (Full Year) Consolidated sales by major product categories

    (Full Year) Consolidated sales by major Forecast for the FYE March 2026 product categories FYE2026 YoY change FYE2024 （Unit : Millions of yen , ％） Ratio to Difference in Ratio of Ratio to Forecast sales amount change Actual sales Japan 14,350 54.4 +710 +5.3 13,634 54.3 Joint 5,500 20.8 +262 +5.0 5,2

  32. Slide 32: Major initiatives for the FYE March 2026

    Forecast for the FYE March 2026 Major initiatives for the FYE March 2026 Area Details of Initiatives  Expansion of sales force through strengthening expertise and new divisional structure based on product categories  Grow sales through focus products & new products  Expansion of sales through nat

  33. Slide 33: FYE March 2026 Outlook for Cost of Sales

    FYE March 2026 Outlook for Cost of Sales Cost ratio for the FYE March 2025 ➡Cost of sales increased due to the impact of the yen's depreciation (144.4 yen/$ in the FYE March 2024 to 152.5 yen/$ in the FYE March 2025) on procurement costs, a temporary decline in productivity leading to higher in-hous

  34. Slide 34: Trends in Capital Expenditures, etc.

    Forecast for the FYE March 2026 Trends in Capital Expenditures, etc. FYE Mar FYE Mar FYE Mar FYE Mar FYE Mar FYE Mar （Unit: Millions of yen） 2021 2022 2023 2024 2025 2026 Actual Actual Actual Actual Actual Forecast Investment in plant and equipment 1,586 1,665 1,317 1,916 1,668 2,530 Depreciation an

  35. Slide 35: Long-term VISION RT500 1st Stage Rolling Plan 2028

    Long-term VISION 「RT５００」 1st Stage Rolling Plan 2028 TSE Prime Market Securities code：7600 35

  36. Slide 36: Quantitative Targets

    Rolling Plan 2028 Quantitative Targets Quantitative targets are expected to be roughly one year behind the previously announced timeline. We are striving to resolve supply chain issues in speed, aiming to restore double-digit growth in U.S. sales primarily through the introduction of new products, t

  37. Slide 37: Sustainability Initiatives

    Sustainability Initiatives We enhance financial value as well as non-financial value through ESG activities. Reducing Improving patient QOL Respecting Human Rights Environmental Impact Strengthening product development and procurement capabilities for products and GHG emissions (Scope 1+2) services

  38. Slide 38: Contributing to Medical Care Through the Development and Distribution of 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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