JMDC : Summary of Financial Statements for the Six Months Ended September 30, 2023 (Consolidated)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Financial Statements for the Six Months

Ended September 30, 2023 [IFRS] (Consolidated)

	November 2, 2023
Company name:	JMDC Inc.
Listing:	Tokyo Stock Exchange
Stock code:	4483
URL:	https://www.jmdc.co.jp/en/
Representative:	Ryo Noguchi, President and CEO
Inquiries:	Tomohiro Mochizuki, Senior Executive Officer and CFO
TEL:	[phone]

Scheduled date to file quarterly securities report:	November 13, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:	Yes (for institutional investors and
	analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2024 (from April 1, 2023 to September 30, 2023)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Revenue		Operating profit	Profit before tax	Profit
Six months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
September 30, 2023	13,746		14.0	3,602		63.2	3,615		61.8	2,663		85.4
September 30, 2022	12,060		26.3	2,207		27.4	2,234		30.3	1,436		26.4
	Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
	owners of parent	income		per share		per share
Six months ended	Millions of yen		%	Millions of yen		%			Yen			Yen
September 30, 2023	2,662		84.4	2,667		84.9			42.20			40.53
September 30, 2022	1,444		27.0	1,442		26.9			25.29			23.86

Reference: EBITDA	Six months ended September 30, 2023	¥3,303 million [11.7%]
	Six months ended September 30, 2022	¥2,956 million [19.6%]

Note: EBITDA: Operating profit + Depreciation and amortization ± Other income and/or expenses

(2) Consolidated financial position

	Total assets	Total equity	Equity attributable to	Ratio of equity
	attributable to owners
	owners of parent
			of parent
As of	Millions of yen	Millions of yen	Millions of yen	%
September 30, 2023	100,000	68,712	68,635	68.6
March 31, 2023	98,567	64,524	64,539	65.5

2. Cash dividends

			Annual dividends
	First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end		Total
	Yen	Yen	Yen		Yen		Yen
Fiscal year ended	-	0.00	-	12.00	12.00
March 31, 2023
Fiscal year ending	-	0.00
March 31, 2024
Fiscal year ending			-		-		-
March 31, 2024
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

Profit

Basic

Revenue

Operating profit

Profit before tax

Profit

attributable to

earnings per

owners of parent

share

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

of yen

Fiscal year ending

33,000

18.7

8,800

48.5

8,750

48.9

6,500

52.1

6,500

52.3

103.32

March 31, 2024

Note: Revisions to the earnings forecasts most recently announced: None

Reference: EBITDA

Fiscal year ending March 31, 2024

¥9,750 million [26.3%]

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates

(i) Changes in accounting policies required by IFRS:	None
(ii) Changes in accounting policies due to other reasons:	None
(iii) Changes in accounting estimates:	None

1. Number of issued shares (ordinary shares)
2. 1. Total number of issued shares at end of the period (including treasury shares)

As of September 30, 2023

As of March 31, 2023

65,301,608 shares

62,910,608 shares

(ii) Number of treasury shares at end of the period

As of September 30, 2023

As of March 31, 2023

1. shares

1. shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

For the six months ended September 30, 2023

For the six months ended September 30, 2022

63,094,445 shares

57,114,128 shares

• Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special items Notes on forward-lookingstatements
  The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual business and other results may differ substantially due to various factors. For details regarding matters related to earnings forecasts, please refer to page 5 of the attached materials.
  How to obtain supplementary documents on financial results
  Supplementary documents on financial results are released via TDnet on the same day.

JMDC Inc. (4483)

Attached Material Index
1. Qualitative information regarding financial results for the six months ended September 30, 2023	......... 2
(1)	Explanation of operating results	2
(2)	Explanation of financial position	4
(3)	Explanation of consolidated earnings forecasts and other forward-looking statements	5
2. Condensed quarterly consolidated financial statements and significant notes thereto	6
(1)	Condensed quarterly consolidated statement of financial position	6
(2)	Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated
	statement of comprehensive income	7
(3)	Condensed quarterly consolidated statement of changes in equity	9
(4)	Condensed quarterly consolidated statement of cash flows	11
(5)	Notes to condensed quarterly consolidated financial statements	12
	Notes on going concern assumption	12
	Segment information	12
	Significant subsequent events	13

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JMDC Inc. (4483)

1. Qualitative information regarding financial results for the six months ended September 30, 2023

1. Explanation of operating results
   JMDC Inc. (the "Company") is promoting the health of citizens, and delivering increased value of medical service providers and helping optimize their operations through gathering diverse data on the Japanese healthcare industry and thus benefiting society, with the aim of realizing a sustainable healthcare system by leveraging data and ICT.
   In the Healthcare-Big Data segment, to promote the health services of health insurance associations, we provide analysis services for data held by payers as well as personal health record (PHR) services developed by the Company. We also provide services such as medical data analysis and medical factoring to medical institutions as well as medicine databases. Furthermore, we have created a database of anonymously processed information in the course of pursuing this business and are promoting scientific and industrial applications of this data.
   In the Tele-medicine segment, we provide a matching service that connects medical institutions lacking a sufficient number of radiologists with contracted radiologists using a remote image interpretation system, as well as an ASP service that connects medical institutions with radiologists via the cloud to enable remote diagnostic imaging.
   In the Dispensing Pharmacy Support segment, we develop and sell systems such as receipt computers and electronic medication history systems to health insurance pharmacies.
   Operating results for the six months ended September 30, 2023 are as follows. (Operating results)

						(Millions of yen)
	10th fiscal year	11th fiscal year
Category	Six months ended	Six months ended	YoY change
	September 30, 2022	September 30, 2023
Revenue	12,060		13,746		1,686		14.0%
Operating profit	2,207		3,602		1,394		63.2%
EBITDA [margin]	2,956	[24.5%]	3,303	[24.0%]	347		11.7%

(Segment results)

(Millions of yen)

			10th fiscal year	11th fiscal year
	Category	Six months ended	Six months ended	YoY change
			September 30, 2022	September 30, 2023
Healthcare-Big		Segment revenue	7,903		9,834		1,931	24.4%
Data		Segment profit [ratio]	2,028	[25.7%]	2,492	[25.3%]	464	22.9%
Tele-medicine		Segment revenue	2,439		2,740		300	12.3%
	Segment profit [ratio]	924	[37.9%]	1,014	[37.0%]	90	9.8%
Dispensing		Segment revenue	1,843		1,261		(582)	(31.6)%
Pharmacy Support		Segment profit [ratio]	192	[10.5%]	133	[10.6%]	(58)	(30.6)%
Adjustment		Segment revenue	(126)		(89)		36	-
	Segment profit	(189)		(338)		(148)	-
Total		Revenue	12,060		13,746		1,686	14.0%
	EBITDA [margin]	2,956	[24.5%]	3,303	[24.0%]	347	11.7%

(Note) EBITDA is an objective indicator for judging the achievement of the JMDC Group's (the "Group's") management policies and strategies or management objectives. The Group uses EBITDA to measure the performance of each segment and believes that it is a useful and necessary measure to assess the Group's performance more effectively. The formulas for calculating EBITDA and EBITDA margin are as follows.

 EBITDA:

Operating profit + Depreciation and amortization ± Other income and/or expenses

• EBITDA margin: EBITDA / Revenue x 100

During the six months ended September 30, 2023, as a result of the tender offer by OMRON Corporation for the Company's ordinary shares, OMRON Corporation became a parent company of the Company effective October 16, 2023.

The Company's shares continue to be listed on the Prime Market of the Tokyo Stock Exchange, Inc.

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JMDC Inc. (4483)

Results by each segment are as follows.

Healthcare-Big Data

The Group possesses the largest scale of healthcare big data in Japan that is available for public through data anonymization of receipts (admitted patients, day patients, prescriptions), medical examinations and member records received from health insurance associations. During the six months ended September 30, 2023, the number of contracted health insurance associations and the annual transaction value per customer at pharmaceutical and insurance companies which the Company uses and utilizes, each continued to increase on a year-on-year basis, and the business is continuing to expand.

Moreover, the Pep Up health information platform developed by the Company is used to generate individualized advice and display risk of diseases for every individual user based on the above healthcare-big data. The number of IDs issued for Pep Up continued to expand during the fiscal year ending March 31, 2024.

In addition to the above-mentioned business expansion, the Company gathered 148 companies and organizations that will work to implemented health management that exceeds industry organizations, and commenced full-scale operations for the "Health & Productivity Management Alliance" in June 2023, expanding to 222 companies and organizations as of August 31, 2023. This alliance aims to have 300 companies participating within fiscal 2023, and plans to jointly create solutions in order to shape and strive for results in health management and realize implementation for the industry by carrying out initiatives, such as setting evaluation indicators for health management, creating health management assessments based on data analysis, building an information platform for various solutions, and holding study sessions and seminars.

As a result, segment revenue for the six months ended September 30, 2023 was ¥9,834 million and segment profit (segment EBITDA) was ¥2,492 million.

Tele-medicine

The Group has the biggest platform for radiologists in Japan. In the six months ended September 30, 2023, revenue increased on a year-on-year basis as a result of the continued increase in the number of medical institutions utilizing remote image interpretation services.

We continue to take measures to expand our business, including adding functions to "AI-RAD," an artificial intelligence engine platform that assists in diagnostic imaging, and preparations for full-scale business development overseas, including in China.

As a result, segment revenue for the six months ended September 30, 2023 was ¥2,740 million and segment profit (segment EBITDA) was ¥1,014 million.

Dispensing Pharmacy Support

During the six months ended September 30, 2023, we worked to cultivate new customers while securing replacement demand from existing customers. In the environment surrounding dispensing pharmacies, the intensity of competition has increased as digitalization has advanced.

Amid the above-mentioned situation, the Company transferred all shares of Unike Software Research Co., Ltd., a component of the Company's Dispensing Pharmacy Support segment, and its management purpose company to the Company's business partner EM Systems Co., Ltd. in June 2023. Due to this transfer, the Company will provide even higher quality services by further acceleration initiatives taken thus far by both companies, and make a splash in the pharmacy market, which will increase the Company's market share.

As a result, segment revenue for the six months ended September 30, 2023 was ¥1,261 million and segment profit (segment EBITDA) was ¥133 million.

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JMDC Inc. (4483)

As a result of the above, for the six months ended September 30, 2023, revenue increased to ¥13,746 million, operating profit to ¥3,602 million, and EBITDA to ¥3,303 million. Adjustments to reconcile EBITDA to operating profit are as follows.

(Reconciliation of EBITDA to operating profit)

		(Millions of yen)
	10th fiscal year	11th fiscal year
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
EBITDA	2,956	3,303
Depreciation and amortization	(936)	(1,074)
Other income	203	1,479
Other expenses	(14)	(106)
Operating profit	2,207	3,602

1. Explanation of financial position
2. 1. Assets, liabilities and equity
      Assets
      Assets at the end of the second quarter under review were ¥100,000 million, an increase of ¥1,433 million compared with the end of the fiscal year ended March 31, 2023. Major changes included an increase of ¥2,277 million in goodwill as a result of the acquisition of new consolidated subsidiaries, etc., and a decrease of ¥1,260 million in cash and cash equivalents.
      Liabilities
      Liabilities at the end of the second quarter under review were ¥31,288 million, a decrease of ¥2,754 million compared with the end of the fiscal year ended March 31, 2023. This was mainly due to a decrease of ¥3,890 million in borrowings in non-current liabilities, despite an increase of ¥2,037 million in borrowings in current liabilities.
      Equity
      Equity at the end of the second quarter under review was ¥68,712 million, an increase of ¥4,187 million compared with the end of the fiscal year ended March 31, 2023. This was mainly due to an increase of ¥1,099 million in both share capital and capital surplus, as a result of the exercise of share acquisition rights, as well as the recording of ¥2,663 million in profit, despite the recording of ¥754 million in dividends.
   2. Cash flows
      Cash and cash equivalents ("cash") at the end of the second quarter under review was ¥21,521 million, a decrease of ¥1,261 million compared with the end of the fiscal year ended March 31, 2023.
      The respective cash flow positions for the six months ended September 30, 2023, and the factors thereof are as follows.
      Cash flows from operating activities
      During the six months ended September 30, 2023, profit before tax was ¥3,615 million, an increase of ¥1,381 million on a year-on-year basis. While depreciation and amortization of ¥1,074 million was recorded, other income of ¥1,479 million, income taxes paid of ¥911 million, and other items were recorded, resulting in net cash provided by operating activities of ¥2,025 million. Although other income had been included in other up to the end of the fiscal year ended March 31, 2023, after a review due to the increased materiality, they are presented separately from the first quarter under review. The condensed quarterly consolidated financial statements for the six months ended September 30, 2022 have been reclassified to reflect this change in presentation.

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JMDC Inc. (4483)

Cash flows from investing activities

Net cash used in investing activities was ¥3,628 million. This was primarily due to purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥2,538 million and purchase of intangible assets of ¥571 million.

Cash flows from financing activities

Net cash provided by financing activities was ¥341 million. This was primarily due to the recording of ¥1,701 million in proceeds from short-term borrowings and ¥2,192 million in proceeds from exercise of share acquisition rights, despite recording of ¥754 million in dividends paid and ¥2,121 million in repayments of long-term borrowings.

1. Explanation of consolidated earnings forecasts and other forward-looking statements
   The consolidated earnings forecasts are unchanged from the forecasts announced on August 9, 2023.

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JMDC Inc. (4483)

2. Condensed quarterly consolidated financial statements and significant notes thereto

(1) Condensed quarterly consolidated statement of financial position

					(Millions of yen)
		As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and cash equivalents	22,782			21,521
Trade and other receivables	11,241			11,054
Other financial assets	3,340			3,249
Inventories	275			194
Other current assets	601			621
Total current assets	38,240			36,641
Non-current assets
Property, plant and equipment	10,772			11,230
Goodwill	39,824			42,101
Intangible assets	5,922			5,396
Other financial assets	1,597			2,424
Deferred tax assets	2,057			1,901
Other non-current assets	152			305
Total non-current assets	60,326			63,359
Total assets	98,567			100,000
Liabilities and equity
Liabilities
Current liabilities
Borrowings	994			3,031
Trade and other payables	5,790			5,506
Lease liabilities	846			855
Income taxes payable	1,201			1,018
Contract liabilities	2,066			2,152
Other current liabilities	1,317			1,183
Total current liabilities	12,216			13,748
Non-current liabilities
Borrowings	11,935			8,045
Lease liabilities	6,623			6,817
Retirement benefit liability	322			150
Provisions	692			429
Deferred tax liabilities	730			716
Contract liabilities	1,520			1,379
Total non-current liabilities	21,825			17,539
Total liabilities	34,042			31,288
Equity
Share capital	23,994			25,094
Capital surplus	27,211			28,298
Treasury shares	(2)			(2)
Other components of equity	28			25
Retained earnings	13,308			15,221
Total equity attributable to owners of parent	64,539			68,635
Non-controlling interests	(14)			76
Total equity	64,524			68,712
Total liabilities and equity	98,567			100,000

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JMDC Inc. (4483)

1. Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated statement of comprehensive income
   Condensed quarterly consolidated statement of profit or loss

			(Millions of yen)
	Six months ended		Six months ended
	September 30, 2022		September 30, 2023
Revenue	12,060	13,746
Cost of sales	5,342	6,171
Gross profit	6,717		7,575
Selling, general and administrative expenses	4,697	5,346
Other income	203	1,479
Other expenses	14	106
Operating profit	2,207		3,602
Finance income	68	29
Finance costs	42	17
Profit before tax	2,234		3,615
Income tax expense	797		951
Profit	1,436	2,663
Profit attributable to
Owners of parent	1,444	2,662
Non-controlling interests	(7)		0
Profit	1,436	2,663
Earnings per share
Basic earnings per share (Yen)	25.29	42.20
Diluted earnings per share (Yen)	23.86	40.53

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