JMDC : FY2023 Financial Briefing Material

Consolidated Revenue

(Million JPY)

Y-o-Y

32,381 +16％

(Excluding Unike's performance)

31,764 +26％

Consolidated EBITDA

(Million JPY)

Y-o-Y

9,471 +23％

(Excluding Unike's performance)

9,416 +28％

Healthcare-Big Data

Revenue

Y-o-Y

+30％

Tele-medicine

Revenue

Y-o-Y

遠隔医療調剤薬局支援

+11％

Number of People in

Contracted Payer

18.93 million people

Number of Pep Up IDs

6.07 million people

Revenue of business

for Industry

+21％

Of which, transactions with

pharmaceutical companies, etc.

+27％

* Comparison of FY2022 and FY2023

5

For Industry

Data utilization service for pharmaceutical companies, insurance companies, etc.

Pharmaceutical:

Life and non-life insurance:

• In the pharmaceutical domain, growth is driven by the expansion of data applications.
• In the life and non-life insurance domain, development projects increased, but data provision was in a down cycle.
• Data assets are expanding, ready for the next generation of growth.

Healthcare-Big Data

Tele-medicine

Dispensing Pharmacy

Support

Revenue

Operating profit

(Rate)

EBITDA

(Margin)

9.3 bil JPY (22%)

(+33%)

12.0 bil JPY (28%)

(+27%)

• Maintain healthy profitability despite a slight decline in profit margin due to rapid expansion of data infrastructure business
• Plans to increase headcount by more than 15% of consolidated headcount through new Group hiring
• Factoring in various cost increases associated with the strengthening of the structure, expansion of scale, and expansion of data assets

Profit attributable to

owners of parent

(Rate)

8

Evaluation of FY2023 performance

The status of pharmaceutical

companies' marketing budget execution

Future Business Outlook for the Healthcare-Big Data segment

Forecast for FY2024

Management Viewpoints

• Both revenue and profit grew steadily, but were slightly below the plan, a regrettable result. While sales to pharmaceutical companies were firm, sales to life and non-life insurance companies were affected by the down cycle of the product development cycle. Despite efforts to stock up on development projects, it was not enough to offset the impact. Profitability remained at the guidance level, excluding the impact of the Q4 group-in of Cancerscan. The No. 1 position in each of the data platforms is steadily growing as the data platform business (e.g., for Payers and for Medical Service Providers) is expanding significantly.
• In addition, this fiscal year, operating profit and below were affected by the transfer of a subsidiary's business and other factors, resulting in one-time gains and losses. While it was difficult to evaluate performance, progress was made in optimizing the business portfolio for the future.
• We still do not feel that the overall marketing budgets of pharmaceutical companies are shrinking.
• On the other hand, many pharmaceutical companies are reviewing the digital promotions they actively used during COVID-19, and we feel that they are increasingly focusing on the concept of optimal resource allocation commensurate with ROI and efficient promotion methods.
• These changes are precisely where our data and analytical and consulting capabilities can make a significant contribution, and we intend to seize the momentum of budget reallocation as an opportunity to expand our proposals to meet the needs of our clients.
• Until now, the revenue generated from payer data has been invested in activities to collect other data, such as medical institution data (DPC, electronic medical records, etc.) and dispensing pharmacy data. Since the primary purpose of these data infrastructure projects was to collect data, profitability was not so high, and the intent was more of an investment in the next generation.
• The current fiscal year was an epoch-making year in which the data infrastructure business took a major leap forward with the expansion of the payer population and the participation of Cancerscan in the Group. Going forward, the company will finally enter the phase of monetizing the greatly expanded data base.
• Specifically, in the data utilization business for Industry, expand the use of payer-derived data by expanding its applications and improving the unit price, and capture the apparent market of medical institution-derived data.
• In addition, the data infrastructure business, whose primary purpose has been to collect data, will begin to create appropriate revenue opportunities associated with providing essential value, such as reducing medical costs and operating efficient medical institutions.
• As in previous years, the plan focused on organic growth, without incorporating excessive expectations for future M&A or new business startups.
• In the health tech industry as a whole, it is difficult to make medium-term forecasts, but we believe that our business foundation is solid and