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Earnings presentation2413M3,Inc.Information and Communications, Services and Others

Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter, revenue increased 5% year on year, while operating profit declined 9% and quarterly profit declined 22%. The overseas business got off to a slower-than-expected start, and quarterly profit was affected by a one-off provision for tax expenses associated with dividends from overseas subsidiaries.

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Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales90,105 million yen+5.0%
Operating profit18,077 million yen-9.0%
Ordinary income18,641 million yen-5.0%
Net income10,579 million yen-22.0%
Full-year earnings forecast
Revenue
95,000 million yen
Operating profit
19,000 million yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Broadly in line with the plan in most segments. However, the start was slower than expected, mainly overseas.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
USD¥150
GBP¥200
EUR¥180
New initiatives
  • Making ワイズマン a subsidiary
  • Increasing the value of ワイズマン products by using M3's AI technology
  • Integrating エムスリーデジカル with ワイズマン's MeLL+
  • Developing new services in the long-term care sector
  • Cross-selling group services in the long-term care sector and providing marketing support
Key KPIsA metric the company considers important as a management benchmark.
  • Cumulative number of facilities using M3 Digikar and other services10,100 Engagements
  • Number of users of DigiSma medical care services18,739 on an index with FY2021 Q3 set at 1
    Year on year against the same period last year1.6x year on year
  • Digi-Sma medical care payment value1.9x year on year
    Year on year against the same period last year+1.9%
  • Total time spent by m3.com physician members124 index with FY2021 Q4 set at 100
  • Number of AI-related projects100 Cases or more
  • Number of physician members7,000,000 people or more
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of users of DigiSma medical care services1.6x year on year
  • Digi-Sma medical care payment value1.9x year on year
Segment results
  • Medical Platform
    Revenue25,585 million yen (YoY +1.0%)
    Profit8,872 million yen (YoY -1.0%)
  • Evidence Solutions
    Revenue5,691 million yen (YoY -8.0%)
    Profit879 million yen (YoY -33.0%)
  • Career Solutions
    Revenue7,999 million yen (YoY -3.0%)
    Profit3,597 million yen (YoY -2.0%)
  • Site Solutions
    Revenue14,159 million yen (YoY +9.0%)
    Profit15 million yen (YoY -98.0%)
  • Patient Solutions
    Revenue14,752 million yen (YoY +10.0%)
    Profit750 million yen (YoY +66.0%)
  • Emerging Businesses Group
    Revenue480 million yen (YoY -3.0%)
    Profit133 million yen (YoY -47.0%)
  • Overseas expansion
    Revenue22,748 million yen (YoY +10.0%)
    Profit4,615 million yen (YoY -5.0%)
Medium-term management plan targets
  • Number of facilities adopting M3 Digikar and other services for medical institutions
    Target30,000+ facilities
    Target timingMedium-term growth perspective
  • Number of overseas ¥2 billion club businesses to be developed
    TargetApproximately 20 businesses
    Target timingMedium-term growth perspective
  • Projected total overseas revenue
    Target¥200–250 billion
    Target timingMedium-term growth perspective
Market Size / Share
  • Cloud-based electronic medical records market shareOverwhelming No. 1
  • Target share of the long-term care DX support market30 %
  • Target reduction in long-term care costsApproximately ¥3 trillion
Orders received and order backlog
Order backlog
¥371 100 million
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales90,105 million yen (YoY +5.0%)
Operating profit18,077 million yen (YoY -9.0%)
Ordinary income18,641 million yen (YoY -5.0%)
Net income10,579 million yen (YoY -22.0%)
Full-year earnings forecastRevenue 95,000 million yen / Operating profit 19,000 million yen
Self-assessment against the planBroadly in line with the plan in most segments. However, the start was slower than expected, mainly overseas.
Segment resultsSegment Medical Platform / Revenue 25,585 million yen (YoY +1.0%) / Profit 8,872 million yen (YoY -1.0%), Segment Evidence Solutions / Revenue 5,691 million yen (YoY -8.0%) / Profit 879 million yen (YoY -33.0%), Segment Career Solutions / Revenue 7,999 million yen (YoY -3.0%) / Profit 3,597 million yen (YoY -2.0%), Segment Site Solutions / Revenue 14,159 million yen (YoY +9.0%) / Profit 15 million yen (YoY -98.0%), Segment Patient Solutions / Revenue 14,752 million yen (YoY +10.0%) / Profit 750 million yen (YoY +66.0%), Segment Emerging Businesses Group / Revenue 480 million yen (YoY -3.0%) / Profit 133 million yen (YoY -47.0%), Segment Overseas expansion / Revenue 22,748 million yen (YoY +10.0%) / Profit 4,615 million yen (YoY -5.0%)
Key KPIsIndicator name Cumulative number of facilities using M3 Digikar and other services / Value 10,100 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of users of DigiSma medical care services / Value 18,739 on an index with FY2021 Q3 set at 1 / Year on year against the same period last year 1.6x year on year, Indicator name Digi-Sma medical care payment value / Value 1.9x year on year / Year on year against the same period last year 1.9 times, Indicator name Total time spent by m3.com physician members / Value 124 index with FY2021 Q4 set at 100 / Year on year against the same period last year Not disclosed, Indicator name Number of AI-related projects / Value 100 Cases or more / Year on year against the same period last year Not disclosed, Indicator name Number of physician members / Value 7,000,000 people or more / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Number of users of DigiSma medical care services / Value 1.6x year on year, Indicator name Digi-Sma medical care payment value / Value 1.9x year on year
Assumptions Underlying the Business OutlookUSD ¥150 / GBP ¥200 / EUR ¥180
Medium-term management plan targetsItem Number of facilities adopting M3 Digikar and other services for medical institutions / Target 30,000+ facilities / Target timing Medium-term growth perspective, Item Number of overseas ¥2 billion club businesses to be developed / Target Approximately 20 businesses / Target timing Medium-term growth perspective, Item Projected total overseas revenue / Target ¥200–250 billion / Target timing Medium-term growth perspective
Orders received and order backlogOrder backlog ¥371 100 million
Market Size / ShareItem Cloud-based electronic medical records market share / Value Overwhelming No. 1, Item Target share of the long-term care DX support market / Value 30 %, Item Target reduction in long-term care costs / Value Approximately ¥3 trillion
New initiativesMaking ワイズマン a subsidiary, Increasing the value of ワイズマン products by using M3's AI technology, Integrating エムスリーデジカル with ワイズマン's MeLL+, Developing new services in the long-term care sector, Cross-selling group services in the long-term care sector and providing marketing support
Items this document does not state (15)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastBreakdown of Factors Affecting the ChangeNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The factors cited were the slower-than-expected start of the overseas business, continued upfront investment for future growth in certain businesses including overseas operations, the absence of high-margin and large-scale projects recorded in the previous fiscal year in the Evidence Solutions segment, and a decrease in equity-method investment gains in the Emerging Businesses segment following the sale of shares in an affiliate in the previous fiscal year. Quarterly profit also includes a one-off provision for tax expenses associated with dividends from overseas subsidiaries.

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Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027 | M3,Inc. (2413) timely disclosure | Komori