M3 : Summary of Consolidated Financial Results; Full-Page Translated Version

		Summary of Consolidated Financial Results
		for the Fiscal Year Ended March 31, 2023 [IFRS]
			Full-Page Translated Version	Apr 28, 2023
Listed Company:			M3, Inc.		Listed Stock Exchange: Tokyo
Securities Code:			2413		URL: https://corporate.m3.com/
Representative:	(Title)	CEO	(Name)	Itaru Tanimura
Contact:	(Title)	Director	(Name)	Eiji Tsuchiya	TEL: [phone]
General Meeting of Shareholders:	June 28 ,2023
Dividend payment commencement date:	June 12, 2023
Submission of securities report:	June 29, 2023

Preparation of explanatory materials for quarterly financial result: Yes

Assembly for briefing of financial results: Yes (For Analysts and institutional investors)

(Amounts of less than one million yen are rounded)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results (Cumulative)								(% figure show year-on-year change)
																				Profit attributable to	Total
	Net sales		Operating profit		Pre-tax profit		Net profit	owners of the		comprehensive
																				parent company		profit
	Million		%		Million		%		Million		%	Million		%	Million		%			Million		%
	Yen			Yen			Yen		Yen		Yen				Yen
Fiscal Year
ended	230,818		10.9		71,983		-24.3		74,318		-22.7	51,983		-21.4	49,028		-23.2		62,857		-11.3
March 31,
2023
Fiscal Year
ended	208,159		23.0		95,141		64.1		96,187		65.1	66,108		60.5	63,845		68.8		70,845		61.9
March 31,
2022
	Basic earnings per			Diluted earnings per			Net profit margin on								Operating
		share					share				equity attributable to		Total asset to
													profit
														owners of the parent	pre-tax profit ratio
																margin
															company
			Yen						Yen				%				%					%
Fiscal Year
ended		72.22					72.17					17.5			19.9					31.2
March 31,
2023
Fiscal Year
ended		94.06					93.98					27.9			31.1				45.7
March 31,
2022
(Ref)Equity in	earnings of affiliated companies for the fiscal year ended March 31, 2023: 1,471 million yen
Equity in earnings of affiliated companies for the fiscal year ended March 31, 2022: -2,430 million yen
(2) Consolidated Financial Position
												Equity attributable to		Ratio of equity		Equity per share
			Total assets		Net equity				attributable to
					owners of the parent	attributable to owners of
						owners of the
														company		the parent company
																parent company
			Million Yen			Million Yen			Million Yen				%					Yen
As of March 31, 2023	400,645			309,518				302,630				75.5				444.22
As of March 31, 2022	345,981			263,954				257,840				74.5				378.75

－ 1 －

(3) Consolidated Cash Flow Position

Cash flow from

Cash flow from investing

Cash flow from

Cash and cash

equivalents at the end of

operating activities

activities

financing activities

the period

Million Yen

Million Yen

Million Yen

Million Yen

Fiscal year ended

57,113

-21,933

-22,837

118,319

March 31, 2023

Fiscal year ended

52,108

-23,407

-16,371

104,253

March 31, 2022

2. Dividends

Annual dividends per share

Dividend payout

Dividend

Dividend payout

ratio attributable to

First

Second

Third

Fiscal

Total

payout

ratio

the owners of the

quarter-

quarter

quarter

year-end

(Total)

(Consolidated)

parent company

end

-end

-end

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million

%

%

Yen

Fiscal year ended

－

0.00

－

16.00

16.00

10,862

17.0

4.8

March 31, 2022

Fiscal year ended

－

0.00

－

19.00

19.00

12,899

26.3

4.6

March 31, 2023

Fiscal year ending

－

－

－

－

－

March 31, 2024

0.00

(Forecast)

(Note) Dividend forecast for the fiscal year ending March 31, 2024 is currently undetermined. It is to be determined after consideration of capital needs and condition of cash flow hereafter.

3. Forecast for the Consolidated Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

					(% figure show year-on-year change for the full year and
			change in contrast to the corresponding quarter from one year prior for the quarter)
			Operating					Profit attributable	Basic
	Net sales	Pre-tax profit	Net profit	to owners of the	earnings
	profit
							parent company	per share
	Million	%	Million	%	Million	%	Million	%	Million	%	Yen
	Yen	Yen	Yen	Yen	Yen
2nd Quarter	120,000	6.6	32,000	-11.8	32,000	-15.9	22,200	-14.5	21,300	-11.5	31.37
(cumulative)
Full Year	250,000	8.3	75,000	4.2	75,000	0.9	52,000	0.0	50,000	2.0	73.65

• Notes

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanying changes in scope of consolidation): None
2. Changes in accounting policies and accounting estimates:
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies other than item (i) above: None
   3. Changes in accounting estimates: None

－ 2 －

1. Number of shares issued (common stock)

1. Number of shares outstanding at the end of the period (including treasury stock)

As of March 31, 2023	678,964,100	shares
As of March 31, 2022	678,904,600	shares
(ii) Number of treasury stock at the end of the period
As of March 31, 2023	45,151	shares
As of March 31, 2022	45,081	shares
(iii) Average number of shares during the period (cumulative)
As of March 31, 2023	678,889,214	shares
As of March 31, 2022	678,769,542	shares

• This summary of financial reports is outside the scope of the review procedures for quarterly financial statements
• Explanation of proper use of financial results forecasts, and other special matters

(Caution regarding statements concerning the future)

The forward-looking statements herein are based on information available to the Company and on certain assumptions deemed to be reasonable at the date of publication of this document. They are not intended as the Company's commitment to achieve such forecasts, and actual results may differ significantly due to various factors.

(Explanatory materials for financial results)

Explanatory materials for financial results will be posted on our website on Friday, April 28, 2023.

－ 3 －

Appendix

1. Qualitative Information on Consolidated Operating Results

(1) Explanation of consolidated operating results

In Japan, various services are provided for the 320,000+ physician members (as of April 28, 2023) via the "m3.com" website designed for medical professionals.

Medical Platform includes services which allow member physicians to proactively receive continuous and frequent information via the "m3.com" platform such as the "MR-kun" family services, marketing research capabilities paneling the physician members, and "QOL-kun" which provides marketing support for non-healthcare related corporates desiring to advertise daily life services to doctors, offering a wide menu of services catering towards various agendas and purposes of our clients. Additionally, provision of next generation sales reps, or "Medical Marketers," and healthcare advertisement agency services are also being expanded via group companies.

Evidence Solution operates businesses such as CRO, which supports clinical development operations and large- scale clinical research, SMO, which supports the overall management and operation of clinical trials at medical institutions conducting clinical trials, and PRO, which provides support for recruiting test subjects and peripheral operations necessary for conducting clinical development and clinical research, etc., through its group companies.

Career Solution provides job search and placement services for physicians and pharmacists through M3 Career, Inc.

Site Solution provides services supporting medical institution operations.

Furthermore, consumer facing services such as the "AskDoctors" (https://www.AskDoctors.jp/) website which connects public users with "m3.com" member physicians for answers to daily health questions, medical professional education such as national examination preparatory services provided by M3 Education, Inc.

In Overseas, the U.S. portal website, "MDLinx," designed for healthcare professionals, continues to expand its member network-based services catering towards pharmaceutical companies, as well as its career support services for physicians and clinical trial support services. In Europe, the "Doctors.net.uk" U.K. portal website is expanding services for pharmaceutical companies, along with pharmaceutical database services offered by the Vidal Group in France, Germany, and Spain, and offering iDoctus, a medical practice mobile app for healthcare professionals through eDoctores Soluciones, S.L., in Spain and Latin America. Business expansion continues in Asia as well.

Additionally, membership and panel participation at websites operated by M3 group starting with Japan, U.S., Europe, China, and Korea, now totals roughly 6 million physicians, enabling provision of marketing research services that span across a global scale.

Consolidated results for the fiscal year (cumulative)	(Unit: Million Yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2022	March 31, 2023	Fiscal year comparison
	(April 1, 2021 to	(April 1, 2022 to
	Mar 31, 2022, cumulative)	Mar 31, 2023, cumulative)
Net sales	208,159	230,818	+22,659	+10.9%
Operating Profit	95,141	71,983	-23,158	-24.3%
Pre-Tax Profit	96,187	74,318	-21,868	-22.7%
Net Profit	66,108	51,983	-14,126	-21.4%

－ 4 －

(Segment results)				(Unit: Million yen)
		Fiscal year ended March	Fiscal year ended
		31, 2022	Mar 31, 2023		Fiscal year
		(April 1, 2021 to	(April 1, 2022 to
			comparison
		Mar 31, 2022,	Mar 31, 2023,
		cumulative)	cumulative)
Medical Platform	Segment Net Sales	85,928	93,098		+7,170		+8.3%
Segment Profit	39,553	41,147		+1,594		+4.0%
Evidence Solution	Segment Net Sales	22,756	27,157		+4,402		+19.3%
Segment Profit	5,654	7,662		+2,007		+35.5%
Career Solution	Segment Net Sales	14,094	14,538		+445		+3.2%
Segment Profit	4,646	4,644		-2		-0.0%
Site Solution	Segment Net Sales	35,184	35,295		+111		+0.3%
Segment Profit	3,399	3,745		+346		+10.2%
Overseas	Segment Net Sales	51,831	62,095		+10,263		+19.8%
Segment Profit	44,837	16,990		-27,847		-62.1%
Other Emerging	Segment Net Sales	3,360	3,284		-76		-2.3%
Businesses	Segment Profit	-601	945		+1,547		－
Adjustment	Segment Net Sales	-4,994	-4,649		－		－
Segment Profit	-2,348	-3,151		－		－
Total	Net Sales	208,159	230,818		+22,659		+10.9%
Operating Profit	95,141	71,983		-23,158		-24.3%

1) Medical Platform

In the area of pharmaceutical marketing support, some foreign-affiliated pharmaceutical companies had reduced their budgets in the term, and although digitalization support-related services were affected by this trend in the second half, businesses other than pharmaceutical marketing support, such as DX in the clinical scene, remained strong, resulting in segment revenue of 93,098 million yen, higher by 8.3% versus previous year. Upfront investments aimed for future growth, such as strengthening pharma marketing team, have raised SG&A mainly around personnel costs, however, Medical Platform segment produced profits of 41,147 million yen, higher by 4.0% versus previous year.

2) Evidence Solution

The impact of the temporary suspension of several clinical trial projects due to the spread of Covid-19 infection in the fiscal year ended March 31, 2021 has run its course in the previous fiscal year, and the recovery trend is continuing in the current fiscal year. Due to clinical trial projects related to COVID infection, etc. the Evidence Solution segment produced total sales of 27,157 million yen, higher by 19.3% versus previous year. Segment profit was 7,662 million yen, higher by 35.5% versus previous year.

3) Career Solution

Despite the impact of lower contributions from the vaccination support services for COVID compared to the previous year, job search support services for physicians remained strong. As a result, segment sales revenue was 14,538 million yen, higher by 3.2% versus previous year, and segment profit was 4,644 million yen, lower by 0.0% versus previous year, partly due to a change in the sales composition.

－ 5 －