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

Second-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027

For the six months ended 30 September 2026, revenue and operating profit exceeded the year-earlier period, while interim profit declined due to a one-off tax expense. Growth initiatives, including pharmaceutical marketing support, digital transformation in healthcare, the use of AI and overseas operations, as well as a medium- to long-term policy for business expansion, were outlined.

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Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥181,853 million+6.0%
Operating profit¥36,335 million+1.0%
Ordinary income¥36,620 million0.0%
Net income¥22,623 million-11.0%
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Questions Has physician activity on m3.com changed since the unauthorized access to MR-kun? / Answer No significant change in usage has been confirmed at this time.
  2. Questions Are there any issues with the security systems for Digikar and Digisma? / Answer MR-kun and Digikar/Digisma use different systems.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit growth from FY2019 to FY2025
FY2019 operating profit¥343 100 million
FY2025 operating profit¥747 100 million
Pharmaceutical marketing¥100 100 million
Healthcare DX¥50 100 million
WJP¥15 100 million
Other MP¥25 100 million
ES¥0 100 million
CS¥15 100 million
SS¥25 100 million
PS¥35 100 million
Other and adjustments¥0 100 million
Overseas¥140 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • USD exchange rate150 yen
  • GBP exchange rate200 yen
  • EUR exchange rate180 yen
New initiatives
  • The AI assistant for physicians on m3.com will be fully rolled out to all physician members from November.
  • Addition of AI agent functionality to M3 Digikar
  • Provision of voice input, medical record summarisation and medical document drafting support
  • Expansion of AI-related projects
  • Strengthening Information Security and Personal Information Management
Key KPIsA metric the company considers important as a management benchmark.
  • Order backlog for the pharmaceutical marketing support business at the end of Q2¥364 100 million
    Year on year against the same period last year+14.0%
  • Number of solution-oriented proposal orders in the first half152 Index with FY2025 first half set at 100
    Year on year against the same period last year+52.0%
  • Order value per solution-oriented proposal127 Index with FY2025 first half set at 100
    Year on year against the same period last year+27.0%
  • Order value for solution-oriented proposals in the first half193 Index with FY2025 first half set at 100
    Year on year against the same period last year+93.0%
  • Cumulative number of facilities using M3 Digikar and other services10,700 Engagements
  • Number of users of DigiSma medical care services21,177 Index with FY2021 Q3 set at 1
    Year on year against the same period last year+60.0%
  • Digi-Sma medical care payment value
    Year on year against the same period last year+70.0%
  • Total time spent by m3.com physician members124 index with FY2021 Q4 set at 100
  • Impact of AI on operating profit relative to AI-related investment1,654 Index with AI-related investment set at 100
  • 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 solution-oriented proposal orders152 Index with FY2025 first half set at 100
  • Order value per solution-oriented proposal127 Index with FY2025 first half set at 100
  • Number of drugs covered by pharmaceutical marketing support services250 Pharmaceuticals
  • Revenue per drug for pharmaceutical marketing support¥1.5 100 million
  • Number of facilities adopting services for medical institutions15,000 Facility
  • Revenue per facility for services for medical institutions¥110 10,000
Segment results
Medical Platform
Revenue
¥54,384 million+5.0%
Profit
¥18,487 million+3.0%
Evidence Solutions
Revenue
¥11,713 million-4.0%
Profit
¥1,973 million-15.0%
Career Solutions
Revenue
¥12,686 million-4.0%
Profit
¥4,438 million+2.0%
Site Solutions
Revenue
¥28,735 million+9.0%
Profit
¥930 million-45.0%
Patient Solutions
Revenue
¥30,229 million+11.0%
Profit
¥2,011 million+91.0%
Emerging Businesses Group
Revenue
¥1,033 million-3.0%
Profit
¥304 million-47.0%
Overseas
Revenue
¥45,447 million+11.0%
Profit
¥9,854 million+10.0%
Medium-term management plan targets
Estimated total revenue from pharmaceutical marketing support
1,000～1,500
Target timingMedium term
Estimated total revenue from services for medical institutions
600～900
Target timingMedium term
Estimated total revenue from overseas business
2,000～2,500
Target timingMedium term
Market Size / Share
Cloud-based electronic medical records market shareOverwhelming No. 1
TAM for pharmaceutical company sales costsFrom approximately ¥1.5 trillion to approximately ¥700–800 billion in the future, etc.
Physician member coverage rate50% of physicians worldwide
Orders received and order backlog
Order backlog
¥364 100 million
First-half order value for solution-based proposals
193 Index with FY2025 first half set at 100
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥181,853 million (YoY +6.0%)
Operating profit¥36,335 million (YoY +1.0%)
Ordinary income¥36,620 million (YoY 0.0%)
Net income¥22,623 million (YoY -11.0%)
Segment resultsMedical Platform Revenue ¥54,384 million (YoY +5.0%) / Profit ¥18,487 million (YoY +3.0%) / Evidence Solutions Revenue ¥11,713 million (YoY -4.0%) / Profit ¥1,973 million (YoY -15.0%) / Career Solutions Revenue ¥12,686 million (YoY -4.0%) / Profit ¥4,438 million (YoY +2.0%) / Site Solutions Revenue ¥28,735 million (YoY +9.0%) / Profit ¥930 million (YoY -45.0%) / Patient Solutions Revenue ¥30,229 million (YoY +11.0%) / Profit ¥2,011 million (YoY +91.0%) / Emerging Businesses Group Revenue ¥1,033 million (YoY -3.0%) / Profit ¥304 million (YoY -47.0%) / Overseas Revenue ¥45,447 million (YoY +11.0%) / Profit ¥9,854 million (YoY +10.0%)
Breakdown of Factors Affecting the ChangeOperating profit growth from FY2019 to FY2025 FY2019 operating profit ¥343 100 million / FY2025 operating profit ¥747 100 million / Pharmaceutical marketing ¥100 100 million / Healthcare DX ¥50 100 million / WJP ¥15 100 million / Other MP ¥25 100 million / ES ¥0 100 million / CS ¥15 100 million / SS ¥25 100 million / PS ¥35 100 million / Other and adjustments ¥0 100 million / Overseas ¥140 100 million
Key KPIsIndicator name Order backlog for the pharmaceutical marketing support business at the end of Q2 / Value ¥364 100 million / Year on year against the same period last year ¥14 100 million, Indicator name Number of solution-oriented proposal orders in the first half / Value 152 Index with FY2025 first half set at 100 / Year on year against the same period last year 52 Index with FY2025 first half set at 100, Indicator name Order value per solution-oriented proposal / Value 127 Index with FY2025 first half set at 100 / Year on year against the same period last year 27 Index with FY2025 first half set at 100, Indicator name Order value for solution-oriented proposals in the first half / Value 193 Index with FY2025 first half set at 100 / Year on year against the same period last year 93 Index with FY2025 first half set at 100, Indicator name Cumulative number of facilities using M3 Digikar and other services / Value 10,700 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of users of DigiSma medical care services / Value 21,177 Index with FY2021 Q3 set at 1 / Year on year against the same period last year 60 Index with FY2021 Q3 set at 1, Indicator name Digi-Sma medical care payment value / Value Not disclosed / Year on year against the same period last year 70 1.7x year on year, 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 Impact of AI on operating profit relative to AI-related investment / Value 1,654 Index with AI-related investment set at 100 / 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 solution-oriented proposal orders / Value 152 Index with FY2025 first half set at 100, Indicator name Order value per solution-oriented proposal / Value 127 Index with FY2025 first half set at 100, Indicator name Number of drugs covered by pharmaceutical marketing support services / Value 250 Pharmaceuticals, Indicator name Revenue per drug for pharmaceutical marketing support / Value ¥1.5 100 million, Indicator name Number of facilities adopting services for medical institutions / Value 15,000 Facility, Revenue per facility for services for medical institutions ¥110 10,000
Assumptions Underlying the Business OutlookItem USD exchange rate / Value 150 yen, Item GBP exchange rate / Value 200 yen, Item EUR exchange rate / Value 180 yen
Medium-term management plan targetsEstimated total revenue from pharmaceutical marketing support Value 1,000～1,500 / Target timing Medium term / Estimated total revenue from services for medical institutions Value 600～900 / Target timing Medium term / Estimated total revenue from overseas business Value 2,000～2,500 / Target timing Medium term
Orders received and order backlogOrder backlog ¥364 100 million / First-half order value for solution-based proposals 193 Index with FY2025 first half set at 100
Market Size / ShareCloud-based electronic medical records market share Overwhelming No. 1 / TAM for pharmaceutical company sales costs From approximately ¥1.5 trillion to approximately ¥700–800 billion in the future, etc. / Physician member coverage rate 50% of physicians worldwide
Key points of the Q&AQuestions Has physician activity on m3.com changed since the unauthorized access to MR-kun? / Answer No significant change in usage has been confirmed at this time., Questions Are there any issues with the security systems for Digikar and Digisma? / Answer MR-kun and Digikar/Digisma use different systems.
New initiativesThe AI assistant for physicians on m3.com will be fully rolled out to all physician members from November., Addition of AI agent functionality to M3 Digikar, Provision of voice input, medical record summarisation and medical document drafting support, Expansion of AI-related projects, Strengthening Information Security and Personal Information Management
Items this document does not state (15)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expenditures

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 decline in interim profit was due to a one-off tax expense incurred in the first half in connection with a dividend paid by an overseas subsidiary. By segment, issue-solving proposals, digital transformation in healthcare, an improved revenue mix, higher revenue in each overseas region and foreign exchange effects contributed to performance, while the loss of high-margin projects from the previous year, the impact of revisions to medical fees, upfront investment and a decline in equity-method investment gains following the sale of shares in an associate in the previous year were negative factors.

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