M3 (2413) Investor presentation summary

Impact of AI advancements

• AI advancements are driving exponential growth in physician engagement and content personalization, with 80% of m3.com’s top page now AI-personalized for users.

• Proprietary AI features are being implemented to answer clinical questions, further enhancing platform value and limiting negative impacts.

• Direct traffic dominates site usage, with minimal reliance on search engines, positioning m3.com as a daily information platform for physicians.

• AI-driven operational efficiency, quality checks, and unique value creation are key business growth drivers.

• Only about 1% of group revenue is from businesses negatively impacted by AI, while 99% benefit from AI advancements.

Financial performance and segment results

• FY2025 revenue grew 23% year-over-year to JPY 351.4 billion, with operating profit up 17% to JPY 73.5 billion, achieving record highs.

• All major segments saw revenue and profit growth, with domestic pharma marketing and clinical DX showing solid momentum.

• Impairment losses of JPY 6.7 billion were recognized, mainly in overseas businesses due to external policy changes.

• Overseas segment revenue increased 8%, with strong performance in Europe and APAC, despite headwinds in North America clinical trials.

• AI contributed approximately JPY 10 billion to operating profit, with future impact expected to expand.

Business expansion and growth potential

• The business scope has expanded to 18 countries and 41 business types, with aggressive M&A planned to drive further growth.

• Overseas doctor membership exceeds 7 million, covering 50% of doctors worldwide.

• The White Jack Project now covers over 7.3 million employees, aiming to double coverage and revenue per employee.

• Cloud-based EHR (DigiKar) installations reached 9,600, with rapid adoption of DigiKar Smart as a telemedicine infrastructure.

• Pharma marketing support business is expanding through increased drug coverage and higher revenue per drug.