JMDC : FY2023 Q2 Financial Briefing Material

FY2023 Q2

Financial Briefing Material

November 2, 2023

JMDC Inc.

INDEX

1. Summary
2. FY2023 Q2 Performance Report
3. Healthcare-BigData Business
4. Tele-medicineBusiness and Dispensing Pharmacy Support Business
5. Business Outlook

2

Introduction

At the end of June this year, we sold a subsidiary in the Dispensing Pharmacy Support Segment. Please be aware of the followi ng in advance

to understand JMDC Group's growth rate correctly.

Outline

FY2021

• Include contributions to financial results by transferred subsidiaries

FY2022

～Q1

FY2023

Q2～ → Do not include contributions to financial results by transferred subsidiaries

3

Note: Above "Unike" represents Unike Software Research and the transferred company within the Unike Software Research Group.

Section 1

Summary

4

FY2023 Q2: Performance Highlights

Both revenue and EBITDA have remained steady. In addition, key KPIs are expanding favorably.

Consolidated Revenue

(Million JPY)

Y-o-Y

13,746 +14％

(Excluding Unike's performance)

13,130 +21％

Consolidated EBITDA

(Million JPY)

Y-o-Y

3,303 +12％

(Excluding Unike's performance)

3,251 +15％

Healthcare-Big Data

Revenue

Y-o-Y

+24％

Tele-medicine

Revenue

Y-o-Y

遠隔医療調剤薬局支援

+12％

Number of People in

Contracted Payer

14.93 million people

Number of Pep Up IDs

5.69 million people

Revenue of business

for Industry

+31％

* Comparison of September 2022 LTM and September 2023 LTM

5

Note: IFRS-based

EBITDA: Operating profit + Depreciation and amortization costs ± Other profits and/or losses

LTM: Last Twelve Months (the past 12 months from the latest quarter)

Above "Unike" represents Unike Software Research and the transferred company within the Unike Software Research Group.

[Reference] Business Segments of JMDC Group

In Healthcare-Big Data Business, the expansions of data assets and business areas accelerated. Tele -medicine Business expanded steadily on the back of solid demand. Dispensing Pharmacy Support Business posted stable financial results.

Healthcare-Big Data

Business Outline

For Industry

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

For Payers and Individuals

Data analysis for health insurance unions, provision

of "Pep Up," an ICT product for health insurance

union members, and services for local governments

For Medical Service Providers

Medicine DB, data analysis for medical institutions, management consulting/finance, web-based medical inquiries, system for attracting patients/taking reservations

Summary of FY2023 H1

• High value-added service in the pharmaceutical domain drove growth.
• Some new businesses are sprouting to become profitable.
• Each KPI expanded steadily thanks to the development of new payers and the accelerated adoption of Pep Up.
• Orders for services for local governments also built up steadily for the second half.
• Data volume increased due to the increase in the number of facilities with medical institution systems.
• Financing and consulting business for medical institutions also favorable.
• Smart Clinic business expands at a faster pace than competitors.

Tele-medicine

Provision of remote diagnostic imaging service	• Sustained solid demand and high profitability
thanks to operational improvements.

Dispensing Pharmacy

Support

Development/provision of receipt computer and electronic medication history for pharmacies

• Business scale shrank due to a subsidiary transfer in the first quarter, but produced steady revenue

• Faced tougher competition in a cloud-based electronic drug history system, etc.

6

FY2023 H1: Management Viewpoints

In order to further deepen the understanding of shareholders, investors and other stakeholders, we will provide management viewpoints.

Management Viewpoints

Evaluation of FY2023 H1 performance

Outlook for the Healthcare-Big Data Business in H2

Status of launching new businesses

Perspectives on future business environment

The effect of OMRON becoming the controlling

shareholder on the business

• Revenue remained steady as planned. In business for Industry, while sales to pharmaceutical companies remained strong, data provision to life insurance companies stagnated somewhat, as they were in a period of preparation for the development of their next product theme, after a round of health promotion-type insurance, but are now on the road to recovery. Excluding the impact of the transfer in Dispensing Pharmacy Support business, other businesses were generally favorable.
• On profit side, we have been able to maintain the profit level as expected by making well balanced investments while continuing to invest in new businesses.
• In business for Industry, pharmaceutical companies continue to be strong, and usage scenarios are expanding in line with the growing data literacy of customers. The data utilization lifecycle continues to be in a growth phase, with no signs of maturity yet. It remains to be seen when the acceleration of growth in data provision for life insurance companies will fully kick into gear. On the other hand, as an important turning point in the expansion of the data exploitation market (TAM), we are getting signs that expansion into new areas other than pharmaceuticals and insurance is taking shape.
• In business for Payers/Individuals, both population and the number of Pep Up users are expanding at the largest pace ever, further solidifying our dominant position.
• The business for medical service providers has remained strong. We have further narrowed the gap compared to our competitors in terms of the volume of data available for utilization. In addition to the group's strength, we are getting ready to take transformational measures, and we feel that we are on the verge of acquiring the No. 1 data volume.
• In doctor network business, initiatives that have been in the pipeline are now reaching the point of sprouting (refer to p.25).
• We are in discussions with several pharmaceutical companies regarding RWD business 2.0 (Dx for clinical trials and PMS). We will continue to provide unique services by utilizing the data we have accumulated and our capability in the clinical trial field.
• The Health & Productivity Management Alliance held its general meeting in September, and already has more than 200 member companies. we will promote up-selling to companies using JMDC services, and to those not using JMDC services, we will promote awareness of our standard analysis services in an effort to generate revenue as soon as possible.
• Many pharmaceutical companies are beginning to reallocate budgets. In this context, the use of real-world data is becoming more aggressive, and there is a growing need to analyze data to optimize the use of marketing expenditures, for example.
• In the data business, data management (standardization, data master maintenance, data security, privacy protection, and system optimization) and monetization (service and consultation) are vital, and we are leading Japan in these areas. We recognize that we are in a position to expand our business not only in the healthcare field, but also through collaboration with data holders in various other fields.
• OMRON has so far decided that respecting JMDC's independence and autonomy is best for both companies, and

becoming JMDC's controlling shareholder will not change this.

7

• For JMDC, the consolidation by OMRON will enable us to more proactively utilize OMRON's assets than ever before and

accelerate our growth. (Refer to the Business Outlook section on page 38 and beyond.)

Section 2

FY2023 Q2 Performance Report

8

FY2023 Q2: Summary of Consolidated Performance

Major PL items are progressing well. In this Q2, there were some one -time expenses such as those related to TOB.

(Unit: Million JPY)

Revenue

Operating profit (Rate)

Profit before taxes (Rate)

Profit attributable to

owners of parent (Rate)

EBITDA (Margin)

FY2022 H1		FY2023 H1		Y-o-Y
12,060	13,746	+14%
2,207	3,602	+63%
(18%)	(26%)
2,234	3,615	+62%
(19%)	(26%)
1,444	2,662	+84%
(12%)	(19%)
2,956	3,303	+12%
(25%)	(24%)

9

Note: IFRS-based

EBITDA: Operating profit + Depreciation and amortization costs ± Other profits and/or losses, EBITDA margin: EBITDA/Revenue

[Reference] FY2023: Progress Against Full-Year Forecasts

In Healthcare-Big Data business, business areas that are biased toward H2 in terms of business structure are expanding. In light of this, progress through H1 has been favorable.

	FY2023 H1		FY2023 Full-Year Forecasts		FY2023 H1	(FY2022 H1)
(Unit: Million JPY)		Progress ratio	Progress ratio

Revenue		13,746	33,000	42%	44%
	3,602	8,800
Operating profit		41%	37%
(Rate)		(26%)	(27%)
	3,615	8,750
Profit before taxes		41%	37%
(Rate)		(26%)	(27%)
Profit attributable to		2,662	6,500	41%	36%
owners of parent
(Rate)		(19%)	(20%)
	3,303	9,750
EBITDA		34%	37%
(Margin)		(24%)	(30%)

10

Note: IFRS-based

EBITDA: Operating profit + Depreciation and amortization costs ± Other profits and/or losses, EBITDA margin: EBITDA/Revenue