Mani : Financial Results FY2024 3Q

1

FY2024 3Q

Financial Results

MANI, INC.

THE BEST QUALITY IN THE WORLD, TO THE WORLD

July 5, 2024

Product Segments

2

Surgical

(Surgical instruments, such as ophthalmic knives and skin staplers)

Ophthalmic Knives

Skin staplers

Eyeless Needle

(Mainly OEM products)

Eyeless Needles

Eyed Needles

Surgical Sutures

Dental Sutures etc.

Dental

(Dental treatment instruments and

MMG (*)products)

Dental Endodontic	Dental Rotary and
Instruments	Cutting Instruments
(Reamers/Files)	(Dia-burs)

Dental Restoration Materials

(*)MMG is the abbreviation for MANI MEDICAL GERMANY GmbH, a consolidated subsidiary in Germany that produces and sells dental restoration materials.

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FY2024 3Q

Financial Results

FY2024 3Q Financial Results

4

Consolidated Financial Results

• Consolidated results were strong in FY2024 3Q; product demand continues to expand overseas
• • Sales grew mainly in Asia and North America. All segments performed well
  • Profits increased since the previous year. Foreign exchange gains by yen depreciation contributed to the increase in ordinary income
  • Although both sales and income increased steadily and exceeded our initial forecast, our full-year plan remains unchanged in consideration of uncertainties such as forex market trends

	FY2023 3Q	FY2024 3Q	Changes	Changes	FY2024	Forecast
（¥ million）	Results	Results	in Amount	in %	Forecasts	Progress Rate
（A）	（B）	（D)
	(C=B-A)	(C/A)	(B/D)
Net sales	18,521	21,610	+3,089	+16.7%	27,500	78.6%
Cost of sales	7,193	8,001	+807	+11.2%	9,900	80.8%
(%)	(38.8%)	(37.0%)			(36.0%)
SG&A expenses	5,899	7,110	+1,210	+20.5%	9,350	76.0%
(%)	(31.9%)	(32.9%)			(34.0%)
Operating	5,427	6,498	+1,070	+19.7%	8,250	78.8%
income	(29.3%)	(30.1%)			(30.0%)
(%)
Ordinary income	5,778	7,125	+1,347	+23.3%	8,250	86.4%
Net income	4,205	5,082	+877	+20.9%	5,900	86.1%

FY2024 3Q Financial Results

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Sales Status by Segment

• Increase in sales +¥3,089 million (+16.7%)
• • Foreign exchange +¥1,100 million
  • All segments' sales have increased. Slight decrease in MMG's sales when excluding foreign exchange impact

(¥ million)		+1,100	+639	+1,013
			Eyeless
			Surgical
		Foreign	Needle
		Demand towards
		exchange	Sales in Asia
		ophthalmic knives,
	•	Surgical	which are used in	(mostly China),
	and North
	cataract surgery, have
		+¥315 million	America have
		increased in Asia
18,521	•	Eyeless Needle	increased
(mostly in China),
	+¥365 million
	•	Dental	Europe and North
	America
		+¥419 million

+335

Dental

MANI's Dental +347 [+6.1%]

• Sales of dia-burs and reamers/files have increased in Asia (mostly

in China and India)	21,610

MMG (12) [(0.9%)]

• Weak sales in 3Q despite recovery from the impact of production delays

FY2023 3Q

Results

Exchange rate

Rate in FY2024 3Q : 1USD=¥149.66 1EUR=¥161.40 1CNY=¥20.68

Rate in FY2023 3Q : 1USD=¥137.31 1EUR=¥144.04 1CNY=¥19.67

FY2024 3Q

Results

FY2024 3Q Financial Results

6

Sales Status by Region

• Strong product demand mainly in Asia (mostly China and India) and North America
• • For further details, please refer to page 19 of the Appendix

(¥ million)		+682	+89	+51
	+1,909
		Other	Japan
+357		North
	regions
Europe	Asia	America

18,521

21,610

FY2023 3Q

Results

Exchange rate

Rate in FY2024 3Q : 1USD=¥149.66 1EUR=¥161.40 1CNY=¥20.68

Rate in FY2023 3Q : 1USD=¥137.31 1EUR=¥144.04 1CNY=¥19.67

FY2024 3Q

Results

FY2024 3Q Financial Results

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Operating Income Status

• Increase in operating income by +¥1,070 million (+19.7%)
• • Foreign exchange +¥390 million
  • Gross profit impact +¥1,716 million： Increase in sales due to higher demands contributed to increase in gross profit
  • SG&A expenses impact (¥1,035) million： Increase in promotion expenses due to marketing activities and administrative expenses such as personnel expenses at the Head Office

(¥ million)	Gross profit impact +1,716	SG&A expenses impact (1,035)

		+500	(330)
+390	+1,216	Changes in	(383)	(321)
R&D costs
	cost of	Sales costs
	Sales	sales ratio		G&A costs
Foreign
volume
exchange

• Gross profit impact ＋¥565 million

5,427	•	SG&A expenses	6,498
	(¥174) million

FY2023 3Q

Results

Exchange rate

Rate in FY2024 3Q : 1USD=¥149.66 1EUR=¥161.40 1CNY=¥20.68

Rate in FY2023 3Q : 1USD=¥137.31 1EUR=¥144.04 1CNY=¥19.67

FY2024 3Q

Results

FY2024 3Q Financial Results

Financial Results by Segment

Segments	Surgical	Eyeless Needle
			7,830
Net sales	5,045	6,001	6,451
(Sales to	YoY	YoY
external
customers)		+18.9%	+21.4%

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	FY2024 3Q Results
	FY2023 3Q Results
Dental	(¥ million)

7,023 7,778

YoY

+10.7%

2,982

Operating		1,992		2,046	38.1%	1,890
1,490	YoY	YoY	1,523	YoY
33.2%	31.7%
26.9%
income	29.5%		+33.7%		+45.7%		(19.4%)
(Operating income							19.6%
margin)

(Note) FY2023 3Q Results are calculated using the method prior to changes in SG&A expenses. Please refer to p.17 for the figures calculated using the new calculation method.

FY2024 3Q Financial Results

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Surgical Segment - Results Analysis

Sales

Operating income / %

Environment recognition

FY2024

FY2023

6,001

FY2024

FY2023

Operating income margin

•	Demand for ophthalmic knives (our mainstay product) is
	expanding mainly in Europe and Asia
•	In the future, the number of cataract patients will increase

3,182

5,045

3,786

	32.9%	33.2%
28.8%		29.5%
		1,992
	1,244	1,490
917

worldwide

• Next targets: Expand market share in Europe and North America

Consider how to deal with low-priced products

Expand ophthalmic surgical field (vitreous surgery)

Competitive advantages

2Q Results	3Q Results
	Sales by region
	5,045	6,001
	1,576
Europe	1,373
Asia	1,222	1,653
389
North America	254
575
Others	506
Japan	1,689	1,807
FY2023 3Q	FY2024 3Q
	Results	Results

2Q Results

3Q Results

Sales ratio by region

Japan	Europe
26%
30%

¥6,001 million

(FY2024 3Q Results)

Others	Asia
10%
North	28%
(China 20%, India 1%)
America

6%

• Superior sharpness and microfabrication technology that adapts to surgical miniaturization and precision
• Contribution to shortening operation time, reducing burden on the human body, and preventing postoperative complications
• Global market share of ophthalmic knives is approximately 30% (No.1 in the Japanese market) *

Results analysis

• Sales and operating income grew due to an increase in demand for ophthalmic knives in Asia (mostly in China), Europe and North America

*Global market share is our estimate (in value terms)

FY2024 3Q Financial Results

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Eyeless Needle Segment - Results Analysis

Sales

FY2024

FY20237,830

Operating income / %

FY2024

FY2023

Operating income margin 38.1%

38.4%

Environment recognition

•	Since the end of COVID-19, the number of surgeries are
	recovering and gradually increasing
•	Market share of North American and Chinese customers have

4,154

6,451

4,974

30.8% 31.7%

2,982

1,912 2,046

1,281

	increased, and other OEM customers are spreading (in China, we
	benefit from preferential policies for domestic products)
•	Possibilities of applying our needle processing technology to new
	fields, such as robotic surgery
•	Next targets : Improve accuracy in forecasting future demands

2Q Results	3Q Results
		Sales by region
	6,451		7,830
		1,288
Europe	1,206
Asia	2,952		3,844
North America	822		1,323
Others
754
		760
Japan		715			613
FY2023 3Q	FY2024 3Q
	Results	Results

2Q Results 3Q Results

Sales ratio by region

	Japan	Europe
	8%
Others		16%
10%
North	¥7,830 million
America	(FY2024 3Q Results)
17%

Asia

49%

(China 30%, India 4%)

Competitive advantages

• The accumulation of our microfabrication technology and our original material development
• High penetrability and resistance to breakage
• Wide variety of needles to meet customer needs

(Diverse lineup of 10,000 types of needles)

Results analysis

• Sales and operating income have continued to increase due to an increase in orders for eyeless needles, which was caused by growing demand in Asia (particularly in China) and North America
• The most profitable segment among all segments