Summary of Consolidated Financial Results for the First Quarter of the Fiscal

Year Ending March 2023 [Japanese GAAP]

Japan Medical Dynamic Marketing, INC.

URL https://www.jmdm.co.jp/

Scheduled date of submission of August 10, 2022

Preparation of supplementary materials for the quarterly financial results :

Holding of quarterly financial results briefing

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for First Quarter of the Fiscal Year Ending March 2023 (from April 1 to June 30, 2022)

(1) Consolidated Operating Results (year to date) (Percentages indicate changes from the same quarter of the previous year.)

Q1 of FYE March 2023 1,524 Million yen ( 321.1%) Q1 of FYE March 2022 362 Million yen (

(Reference) Shareholders' Q1 of FYE March 2023 22,572Million yen

(Note) Revisions to the most recently announced dividend forecast

3. Consolidated Financial Forecasts for FYE March 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate changes from the previous year for the full year, and from the same quarter of the previous year for the quarter.)

(Note) Revisions to the most recently announced financial forecast

(1) Changes in significant subsidiaries during the first quarter under review: None

(Changes in specified subsidiaries resulting in changes in scope of consolidation)

Newly included - companies (Company name) - , Excluded - companies (company name) -

(2) Application of accounting treatment specific to the preparation of quarterly

(3) Changes in accounting policies, accounting estimates, and retrospective restatement

Changes in accounting policies based on revisions of accounting standard

Changes in accounting policies other than 1)

These forward-looking statements such as financial forecasts contained in this report are based on information currently available to the Company and certain assumptions deemed to be reasonable by the Company, and do not mean that the Company promises to achieve them. Actual results and other future events may differ significantly due to various factors. Please refer to "(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements" on page 2 of the attached document for the assumptions underlying the forecasts, notes on using the forecasts, etc.

Japan Medical Dynamic Marketing, INC (7600) Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2023

1. Qualitative Information on Quarterly Financial Results ........................................................................................................................

Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements .............................................................

2. Quarterly Consolidated Financial Statements and Main Notes ..............................................................................................................

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ..........................

Notes to Quarterly Consolidated Financial Statements ....................................................................................................................

(Note on Going Concern Assumption)...............................................................................................................................................

(Notes on Substantial Changes in the Amount of Shareholders' Equity) ...........................................................................................

(Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements) ......................

Japan Medical Dynamic Marketing, INC (7600) Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2023

1. Qualitative Information on Quarterly Financial Results

During the first quarter of the fiscal year ending March 31, 2023 of the Group, net sales were ¥5,027 million (up ¥489 million, or 10.8% year on year), operating profit was ¥498 million (down ¥55 million, or 10.1% year on year), ordinary profit was ¥483 million (down ¥58 million, or 10.7% year on year), and net income attributable to owners of parent was ¥336 million (down ¥27 million, or 7.4% year on year).

In Japan, the number of cases improved compared with the same quarter a year ago, a quarter affected by COVID-19, and net sales were ¥2,933 million (up ¥210 million, or 7.7% year on year). On the other hand, in the United States, the number of cases increased due to a recovery in business activities as a result of the expansion of COVID-19 vaccinations and other factors in comparison with the same quarter a year ago when cases grew in number. However, net sales to external customers in the United States (in U.S. dollars) decreased 1.6% year on year due to a decline in case unit prices, but after translation into yen, net sales increased 15.4% to ¥2,093 million due to the impact of the yen's depreciation.

In the artificial joints category, combined total net sales in Japan and the United States increased 11.5% (4.8% in Japan and 15.5% in the United States) year on year to ¥3,222 million as sales in the United States grew substantially (after translation into Japanese yen) due to the yen's sharp depreciation. (Reference: The exchange rate for U.S. sales was 110.03 yen to the U.S. dollar in the same quarter a year ago and was 129.05 yen to the U.S. dollar in the quarter under review.)

In the category of osteosynthesis materials, net sales in Japan increased 10.7% year on year to ¥960 million, mainly due to steady sales of ASULOCK and Prima Hip Screw.

In the category of spinal fixation devices, sales of the KMC Kyphoplasty System continued to be steady in Japan and sales of Pisces Spinal System grew, resulting in a 10.2% increase in total net sales in Japan and the United States to ¥827 million.

As for cost of sales, the cost of sales ratio was 33.4% (32.0% in the same quarter a year ago) mainly due to the yen's depreciation and revision to redemption prices in Japan.

Selling, general and administrative expenses totaled ¥2,849 million (up 12.5% year on year), reflecting an increase in expenses (after translation into yen) in the United States as a result of the yen's depreciation. The ratio of selling, general and administrative expenses to net sales was 56.7% (55.8% in the same quarter a year ago).

Despite an increase in net sales, operating profit was ¥498 million (down 10.1% year on year) due to an increase in selling, general and administrative expenses in addition to an increase in the cost of sales ratio owing to the yen's depreciation.

Ordinary profit was ¥483 million (down 10.7% year on year) as a result of recording non-operating income of ¥35 million, including insurance claim income of ¥13 million, and recording non-operating expenses of ¥49 million, including foreign exchange losses of ¥30 million.

As for extraordinary income and losses, ¥6 million in reversal of provision for loss on business was recorded under extraordinary income and ¥12 million in loss on retirement of non-current assets such as medical tools was recorded under extraordinary loss.

As a result, net income attributable to owners of parent amounted to ¥336 million (down 7.4% from the previous fiscal year).

Segment results are as follows.

Total assets at the end of the quarter under review increased ¥1,312 million from the end of the previous fiscal year to ¥28,655 million. The main increases were in merchandise and finished goods by ¥915 million and raw materials and supplies by ¥422 million.

Total liabilities increased ¥105 million from the end of the previous fiscal year to ¥5,957 million. The main increase was in short- term borrowings by ¥219 million, and the main decreases were in provision for bonuses by ¥149 million and in long-term borrowings by ¥56 million.

Net interest-bearing debts, which are calculated by deducting cash and deposits from interest-bearing debts (the total amount of short-term borrowings, long-term borrowings, and lease liabilities), amounted to minus ¥707 million at the end of the quarter under review.

Total net assets increased ¥1,207 million from the end of the previous fiscal year to ¥22,698 million. The main increases were in foreign currency translation adjustment by ¥1,066 million and in deferred gains or losses on hedges by ¥96 million.

(3) Explanation on Consolidated Financial Forecasts and Other Forward-looking Statements

There is no change to the consolidated financial forecast for the current fiscal year announced on April 28, 2022.

Japan Medical Dynamic Marketing, INC (7600) Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2023

2. Quarterly Consolidated Financial Statements and Main Notes

Notes and accounts receivable - trade, and contract

Machinery, equipment, and vehicles (net)

Tools, furniture, and fixtures (net)

Total property, plant, and equipment

Investments in capital of subsidiaries and

Total investments and other assets

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Japan Medical Dynamic Marketing Inc. published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 06:31:15 UTC.