M3 : Presentation Material

April 26, 2024 at 10:26 am EDT

M3, Inc.

Presentation Material

April 2024

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 assumptions are objectively incorrect and/or may produce differing actual results from those mentioned in the statements.

Furthermore, information and data other than those concerning the Company and its subsidiaries/affiliates are quoted from public information, and the Company has not verified and will not warrant its accuracy or dependency.

M3, Inc.

FY2023 Consolidated Results

Unit: JPY MM	FY2022

Sales	230,818

Operating	71,983
Profit
Pre-tax	74,318
Profit
Net Profit	51,983

FY2023

238,883

64,381

68,840

48,549

YoY

+3%

-11%

-7%

YoY growth in business excluding COVID related revenues, sales +11%

Excluding the impact of impairment losses, OP was -2% YOY

Regular business has achieved double-digit growth in sales, while OP was down due to a slowdown in pharmaceutical marketing support, caused by a drop of temporarily surged demand in the COVID period and budget compression in some pharmaceutical companies, and a slowdown in US clinical trial business, in addition to the recognition of

Consolidated Sales Trends and COVID Impact

Unit: JPY MM			238,883	COVID related
		230,818
		(clinical trials,
	208,159	～24,300	～10,400	vaccination support,
		promotion of
169,198	～24,800		+11%	therapeutic drugs and
	vaccines, etc.)
				Regular
				businesses
FY2020	FY2021	FY2022	FY2023

COVID-related revenues saw a decrease of approximately 14 billion yen for FY2023, significantly impacting profits. For FY2024, COVID-related revenues are expected to harm sales of around 7 billion yen

*FY22 Actuals: Q1 ~8.1 Bn, Q2 ~6.4 Bn, Q3 ~6.2 Bn, Q4 ~3.5 Bn

FY23 Actuals: Q1 ~3.0 Bn, Q2 ~2.7 Bn, Q3 ~2.7 Bn, Q4 ~2.0 Bn

FY2023 Consolidated Results by Segment

Unit: JPY MM

	Medical
	Platform
	Evidence
Domestic	Solution
Career

	Solution
	Site
	Solution
	Emerging
	Businesses

	Overseas

* M3E：M3 Education, Inc.

					 Pharma marketing: The year-

	FY2022	FY2023	YoY	end budget spending for Q4
					was also limited, but the
					fundamental DX is still
Sales	93,098	93,414	+0%
		progressing
					 Other businesses such as DX
Profit	41,147	38,626	-6%
		of the clinical scene showed
					steady growth
Sales	27,157	26,700	-2%
		 Order backlog: 29.1 Bn
Profit	7,662	6,698	-13%
		 Sales +3% excluding COVID
					 Short-term negative impact
Sales	14,538	16,642	+14%
		due to completion of major
					projects
Profit	4,644	4,781	+3%
		 Sales +22% excluding COVID
Sales	35,295	33,025	-6%

Profit	3,745	3,735	-0%		 Sales +33% excluding COVID
					 Recorded an impairment loss
Sales	3,284	2,633	-20%
	for M3E*, due to shrinking
Profit	945	-290	-		market for graduated dental
		students
Sales	62,095	69,868	+13%	 Sales +20% excluding COVID
					 Impairment loss in US clinical
Profit	16,990	11,695	-31%
	trial business
					 Europe and APAC region

					steady

FY2023 Forecast vs. Actuals

Initial outlook

Medical Platform

Evidence Solutions

Career Solutions

Site Solutions

Overseas

Other / Adjustments

FY2023 Act.

Sales	Operating profit
	～250.0 bn		～ 75.0 bn

238.9 bn		64.4 bn

Missed targets mainly due to Overseas and Medical Platform segments, especially Overseas, where profit shortfalls increased due to impairment loss

Background of Impairment loss and Recovery Plan for US Clinical Trial Business

Sales trend in US clinical trial business

 Management base and structure

renewal:

(JPY Bn)

9.3

COVID-related Regular business

Impairment loss due to the decline

in COVID-related revenues, but

cumulative returns since

acquisition have been almost

7.7

6.8

4.6

2.9

FY19 FY20 FY21 FY22 FY23 FY24 FY25

realized… Accelerate efforts for

future recovery

 Improvement of cost structure:

Reviewed and downsized the

organization that had expanded in

response to the surge in demand

during the COVID period, to make

the organization more muscular

(already implemented in April)

 Strengthen sales and patient

recruiting functions:

Aggressively increase the number

of sales personnel and strengthen

initiatives for further growth

Sales Outlook for FY2024

Unit: JPY MM Percentage of COVID-
related revenues to be
significantly reduced;
growth expected to
come from growth of	270,500
regular businesses	～3,000

Growth rate

Regular

businesses only Overall

COVID related

(clinical trials,	238,883
vaccination support,
promotion of	～10,400
therapeutic drugs and
vaccines, etc.)

+17%

+13%

17%

Regular

businesses

FY2023 FY2024E*

13% 11%

FY2022 FY2023 FY2024E*

Driving sales growth, mainly in the Medical Platform and Overseas Segments

* The median of the range of FY2024 Forecasts (268,000～273,000 million yen)

M3's Triple Growth Engine + CSV

	1. Ecosystem
		Expansion
		(Sagrada Familia)
				Regions (12 areas)
	１	２	３	４	５	６	７	８	９	10	11
	ＭＰ
Businesses (30	CS ＳＳＥＳ
- 50)
	Others

2. Individual Business Development

Regions (12 areas)

１

２

３

４

５

６

７

８

９

	ＭＰ
Businesses (30
CS ＳＳＥＳ
- 50)
	Others

3. Ecosystem Synergy Creation

Regions (12 areas)

１

２

３

４

５

６

７

８

９

	ＭＰ
Businesses (30
CS ＳＳＥＳ
- 50)
	Others

Continuous new

business entries

 Pharma marketing	 Cross-cell synergy
/ Clinical Scene DX	maximization

4. Social Impact Creation → CSV

Growth Engine 1： Ecosystem Expansion (Sagrada Familia)

Businesses (30 - 50)

Others CS ＳＳＥＳＭＰ

Regions (12 areas)

１

２

３

４

５

６

７

８

９

Regions (12 areas)

１

２

３

４

５

６

７

８

９

	ＭＰ
Businesses (30 -	CS ＳＳＥＳ
50)
	Others

Regions (12 areas)

１

２

３

４

５

６

７

８

９

	ＭＰ
Businesses (30 -	CS ＳＳＥＳ
50)
	Others

4. Social Impact Creation → CSV

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Disclaimer

M3 Inc. published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 14:25:02 UTC.

	1st Jan change	Capi.
M3, INC.	-29.06%	7.26B
TENCENT HOLDINGS LIMITED	+29.70%	447B
NETFLIX, INC.	+33.56%	272B
UBER TECHNOLOGIES, INC.	+6.90%	135B
AIRBNB, INC.	+7.08%	93.37B
PROSUS N.V.	+26.20%	90.6B
SPOTIFY TECHNOLOGY S.A.	+72.82%	64.79B
DOORDASH, INC.	+11.82%	45.51B
NASPERS LIMITED	+23.39%	35.95B
COSTAR GROUP, INC.	-10.68%	32.12B

1st Jan change

Capi.

M3, INC.

-29.06%

7.26B

TENCENT HOLDINGS LIMITED

+29.70%

447B

NETFLIX, INC.

+33.56%

272B

UBER TECHNOLOGIES, INC.

+6.90%

135B

AIRBNB, INC.

+7.08%

93.37B

PROSUS N.V.

+26.20%

90.6B

SPOTIFY TECHNOLOGY S.A.

+72.82%

64.79B

DOORDASH, INC.

+11.82%

45.51B

NASPERS LIMITED

+23.39%

35.95B

COSTAR GROUP, INC.

-10.68%

32.12B

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-06-05 am EDT			5-day change	1st Jan Change
1,655 ^JPY	+0.03%		+7.54%	-29.06%

Jun. 03	M3, Inc. acquired MinaCare Co., Ltd.	CI
Apr. 29	M3's Attributable Profit Drops 7.7% in Fiscal 2024	MT

M3, Inc. acquired MinaCare Co., Ltd.	Jun. 02	CI
M3's Attributable Profit Drops 7.7% in Fiscal 2024	Apr. 29	MT
Jefferies Adjusts M3’s Price Target to 1,800 Yen From 2,200 Yen, Keeps at Hold	Apr. 29	MT
M3, Inc. Announces Dividend for the Year Ended March 31, 2024, Payable on June 10, 2024	Apr. 26	CI
M3, Inc. Provides Consolidated Earnings Guidance for the Six Months Ending September 30, 2024; Provides Earnings Guidance for the Year Ending March 31, 2025	Apr. 26	CI
M3, Inc. acquired MEDCARE, Inc.	Apr. 25	CI
Dai-ichi Life CEO expects unsolicited takeovers to become common practice in Japan	Apr. 17	RE
M3, Inc. Provides Dividend Guidance for the Fiscal Year Ended March 31, 2024	Feb. 29	CI
M3, Inc. cancelled the offer to acquire a 55% stake in Benefit One Inc. from Pasona Group Inc. and others	Feb. 28	CI
Benefit One Board Backs Dai-ichi Life Tender Offer	Feb. 13	MT
Dai-ichi Life reaches deal with Pasona on Benefit One acquisition - Nikkei	Feb. 08	RE
Jefferies Adjusts M3's Price Target to 2,200 Yen From 2,770 Yen, Keeps at Hold	Feb. 01	MT
Japanese Shares Snap Winning Streak as US Fed Signals More Rate Cut Delay	Feb. 01	MT
M3 Books Lower Nine-Month Income Despite Improved Net Sales	Feb. 01	MT
Japanese Shares End in Red But Hit Fresh 52-Week Peak on Weak Yen	Jan. 17	MT
M3 Extends Tender Offer Period for Benefit One Amid Talks Over Potential Change in Offer Price	Jan. 16	MT
Chefaa announced that it has received $5.25 million in funding from Newtown Partners Ltd, Global Brain Co., Ltd., GMS Capital Partners LLC, Verod-Kepple Africa Ventures, M3, Inc.	Dec. 18	CI
Dai-ichi Life to Submit Higher Rival Bid of 1,800 Yen per Share for Benefit One Buyout	Dec. 13	MT
M3 Extends Tender Offer Period for Benefit One Shares Amid Competing Offer from Dai-ichi Life	Dec. 12	MT
M3, Inc. acquired Dr. Bhatia Medical Coaching Institute.	Dec. 04	CI
Horus HD Co., Ltd. completed the acquisition of 82.05% stake in Visionaryholdings Co., Ltd. from M3, Inc and others.	Nov. 20	CI
M3, Inc. entered into a share tender agreement to acquire a 55% stake in Benefit One Inc. from Pasona Group Inc. and others for approximately ¥140 billion.	Nov. 13	CI
Jefferies Adjusts M3's Price Target to 2,770 Yen From 3,400 Yen, Keeps at Hold	Nov. 13	MT
M3’s Attributable Profit Down 3.2% in Fiscal H1 on Lower Profits by Emerging Business, Site and Evidence Solution Segments	23-10-29	MT
M3, Inc. Reports Earnings Results for the Half Year Ended September 30, 2023	23-10-27	CI

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