1Q FY2018 (Fiscal Year Ending March 31, 2019) Financial Results. Copyright Sogo Medical Co., Ltd. All Rights Reserved.

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1 (Fiscal Year Ending March 31, 2019) Financial Results

2 Contents 1. Summary of Financial Results and Forecast 2 Consolidated Earnings 3 Profit & Losses (by Business Segment) 4 Medical Practice Support Data (Consulting) 5 Medical Practice Support Data (Rental, Leasing & Installment) 6 Pharmacy Data (Sales & Number of Pharmacies) 7 Pharmacy Data (Prescriptions & Unit Price) 8 Trends for Major Items in the Basic Dispensing Fee and Technical Fee Components 9 Financial Position (Balance Sheets) 10 FY2018 Financial Forecast Measures Undertaken in 12 Healthcare Mall Development 13 Hospital Management Support 14 Creation of High-value Pharmacies 15 Measures Carried Out by Bunkyo Corporation Appendix 17 Quarterly Earnings Trends (by Business) 18 Quarterly Earnings Trends (Data Summary) 19 Medical Practice Support Data 20 Pharmacy Data 21 Explanation of the appropriate use of financial result forecasts. These financial result forecasts are based on currently available information. Actual financial results could differ from these forecasts due to various factors. ( The amounts are rounded down. ) Copyright Sogo Medical Co., Ltd All Rights Reserved. 1

3 1 Copyright Summary of Q1 FY2018 Financial Results and Forecast Sogo Medical Co., Ltd. All Rights Reserved.

4 Consolidated Earnings ( million) Sales (left axis) Ordinary income (right axis) ( million) 2,000 40,000 30,000 20,000 10,000 33,191 1,332 35, ,500 1, Net sales Operating income Ordinary income Quarterly Profit attributable to owners of parent 1Q FY2017 result result YoY YoY (%) (\million) Achieveme Achievement nt rate for rate for 1H FY2018 plan plan 33,191 35,155 1, % 50.6% 24.3% (100.0%) (100.0%) 1, % 36.8% 14.4% (4.2%) (2.4%) 1, % 39.6% 14.9% (4.0%) (2.5%) % 33.5% 12.6% (2.4%) (1.2%) 0 1Q FY Quarterly net income per share ( ) % - - *On April 1, 2018, Sogo Medical implemented a 2:1 common stock split. Net income per share prior to this date was calculated based on the assumption this stock split had been carried out. *The figures in parentheses represent the ratio to total sales. Copyright Sogo Medical Co., Ltd All Rights Reserved. 3

5 Profit & Losses (by Business Segment) 1Q FY2017 result result YoY YoY (%) Net sales 33,191 35,155 1, % Main factors (\million) Medical practice support 6,092 8,936 2, % Consulting +91, doctor job transfers and private practice start-up Consulting % support +5 Rental 1,539 2, % Rental +321, sales of subrental +185 Leasing/installment +53, sales of sublease -57, Leasing/Installment 2,334 2, % merchandise sales -98 Others 1,729 4,072 2,342 In-hospital store sales, etc. +2,426, design and construction -238, 135.5% medical professional referral and dispatch +73 Pharmacies 26,853 25, Existing pharmacy sales -1,242, pharmacies opened in FY % +404, pharmacies opening FY , pharmacy closures, etc Others % Operating income 1, % Medical practice support % Consulting +39, rental +28, in-hospital store sales, etc. +37 Pharmacies 1, % Profit decline in tandem with sales drop Others % Elimination & Corporate (87) (63) 24 - Copyright Sogo Medical Co., Ltd All Rights Reserved. 4

6 Medical Practice Support Data (Consulting) ( million) DtoD concierge ad revenue Start-up support, etc. Transfer support Consulting Start-up support Support of medical practices carried on by successors 1Q FY2017 result result YoY Total for transfer support 1,349 1, Full-time Part-time 1,344 1, Q FY2017 March 31, June 30, YoY Doctors registered for DtoD (No. of people) 74,898 76,028 1,130 Succeed Members (cases) 1,680 1,687 7 Copyright Sogo Medical Co., Ltd All Rights Reserved. 5

7 Medical Practice Support Data (Rental, Leasing & Installment) ( million) Sales of subrental Rental 2,045 1,539 1,487 1, Q FY2017 Number of rental TVs in operation (TVs) June 30, June 30, YoY YoY (%) 145, ,649 8, % ( million) 3,000 2,500 2,000 1,500 1, Sales of sublease Merchandise sales Leasing/installment 2,334 2, ,683 1,626 1Q FY2017 Leasing/installment volume 1Q FY2017 result result YoY YoY (%) 1,901 2, % Copyright Sogo Medical Co., Ltd All Rights Reserved. 6

8 Pharmacy Data (Sales & Number of Pharmacies) FY2017 result ( million) 27,000 25,000 <Dispensing sales> Openings/closing in FY2018 Openings in FY2017 Existing pharmacies 26, <OTC sales, etc.> Sales of OTCs, etc. 25, Number of pharmacies Number of new openings Start-up support portion Existing pharmacy portion M&A portion Number of closings , ,106 1Q FY ,864 ( million) 5,000 4,500 4,000 3,500 3,000 Sales (all pharmacies) Sales (existing pharmacies) *1 Prescription volume (all pharmacies) Prescription volume (existing pharmacies) *1 3, (+13.7%) (+4.6%) 1Q FY2017 4,355 3,879 *2 (+12.3%) 3,933 (+1.4%)*2 (in thousands) Copyright Sogo Medical Co., Ltd All Rights Reserved *1 Existing pharmacies = 76 pharmacies opened in healthcare malls as of the end of 1Q FY2017 *2 The figures in parentheses are comparison with 1Q FY2017 *2 *2 0

9 Pharmacy Data (Prescriptions & Unit Price) All pharmacies (in thousands) 3,100 Existing pharmacies *2 3,067 ( ) 12,000 Dispensing fee unit price Prescription unit price Dispensing fee unit price 3,050 3,000 2,950 2,900 2,996 *1 *1 *1 2,996 2,994 10,000 8,000 6,000 4,000 2,000 8,762 8,292 6,467 6,065 2,295 2, Q FY Q FY2017 Average Average 1Q FY2017 result result YoY YoY (%) 1Q FY2017 Average Average YoY YoY (%) All pharmacies 2,996 * 1 3,067 * % Prescription unit price 8,762 8, % Existing pharmacies 2,996 *1 2,994 * % Dispensing fee unit price 6,467 6, % Technical fee unit price 2,295 2, % *1: 672 pharmacies677 店舗ー閉局 5 店舗 ) *2: 691 pharmacies * Prescription unit price = Dispensing fee unit price + Technical fee unit price Copyright Sogo Medical Co., Ltd All Rights Reserved. 8

10 Trends for Major Items in the Basic Dispensing Fee and Technical Fee Components (pharmacies) /03 No regional support program premium (0 points) Regional support program premium (32 points) / / /06 *Basic dispensing fee premium in FY2017 Premium 3 (26 points) Premium 1 (18 points) 450 Premium 2 (22 points) No premium (0 points) (cases) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 (%) Guidance fee premium owing to number of primary pharmacists (left axis) Number of primary pharmacist consent forms received (left axis) Number of primary pharmacists (right axis) (No. of people) ,959 54,563 56,371 40,044 41,614 38,760 Number of pharmacies with a concentration ratio of less than 85% (right axis) 集中率 Concentration ( 左軸 ) ratio 集中率 (left axis) 85% 未満の店舗数 ( 右軸 ) / / /06 Concentration ratio (left axis) Number of pharmacies with a concentration ratio of less than 85% (right axis) , (Pharmacies) / / / / /06 *Standalone data for Sogo Medical Copyright Sogo Medical Co., Ltd All Rights Reserved. 9

11 Financial Position (Balance Sheets) FY2017 June 31, 2018 YoY Total assets 89,748 89, Current assets 47,485 44,225-3,259 (Cash and deposits) 14,538 13, Acquisition of equity in Bunkyo -3,575 Decrease in dispensing fee receivables and sales of (Notes and accounts receivable-trade) 20,536 18,039-2,496 sublease receivables (Inventories) 5,787 6, Noncurrent assets 42,263 45,717 3,453 (Property, plant and equipment) 25,440 26, (Intangible assets) 10,502 13,021 2,518 Goodwill +2,549 (Bunkyo portion +2,784) Total liabilities 53,221 53, Decrease in sales of sublease receivables Current liabilities 33,598 31,950-1,647 (Notes and accounts payable-trade) 20,037 18,567-1,470 (Current portion of long-term loans payable) 4,429 4, Noncurrent liabilities 19,623 21,496 1,873 (Long-term loans payable) 13,831 14,904 1,073 (Long-term accounts payable-installment purchase) 2,754 3, (Interest-bearing debts) 23,529 25,829 2,299 Total net assets 36,526 36, Net income +430, dividend payments -486 Total liabilities and net assets 89,748 89, Net assets per share (\) *1 1, , Capital adequacy ratio (%) Net D/E ratio (times) * Main sources of changes (\million) *1: On April 1, 2018, Sogo Medical implemented a 2:1 common stock split. Net income per share prior to this date was calculated based on the assumption this stock split had been carried out. *2: Net D/E ratio = Net interest-bearing liabilities (interest-bearing liabilities cash and deposits) / shareholders equity + interest-bearing debt; this includes the leasing receivables and installment receivables posted to the balance sheet Copyright Sogo Medical Co., Ltd All Rights Reserved. 10

12 FY2018 Financial Forecast (\million) FY2017 FY2018 YoY 1Q 1H Full year 1Q results 1Q plan achieveme nt rate 2Q 1H Full-year estimate* forecast forecast Change 1H Full year Change Change Change (%) (%) Net sales 66, ,431 35,155 33, % 34,379 69, ,928 3, % 9, % Medical practice support 12,627 24,548 8,936 7, % , , % Pharmacies 53, ,918 25,977 25, % , , % Others % - - 1, % Gross profit 9,729 20,354 5,154 4, % 5,316 10,470 22, % 2, % SG&A 6,628 13,164 4,321 4, % 3,886 8,207 16,995 1, % 3, % Operating income 3,101 7, % 1,431 2,263 5, % -1, % Ordinary income 3,118 7, % 1,322 2,188 5, % -1, % Profit attributable to owners of parent 1,839 4, % 854 1,284 3, % % Net income per share ( ) * 2Q estimate = 1H forecast 1Q results * On April 1, 2018, Sogo Medical implemented a 2:1 common stock split. Net income per share prior to this date was calculated based on the assumption this stock split had been carried out. Copyright Sogo Medical Co., Ltd All Rights Reserved. 11

13 2 Measures Undertaken in

14 Healthcare Mall Development Opened May 2018 in Hirakata, Osaka Number of healthcare mall projects 184 Target projects Key projects 47 Finalized projects Track record Support Start-up consulting Design and construction Leasing Risk assessment March 31,2018 Hirakata, Osaka Saitama, Saitama Pref. Copyright Sogo Medical Co., Ltd All Rights Reserved

15 Hospital Management Support Hiroshima Prefecture 9 10 Support Consulting (operations contracts) Construction of facilityʼs interior Leasing/installment Rental Risk assessment Facility leasing Pharmacy Departments Internal Medicine, Pediatrics, Surgical, Proctology,Orthopedics, Dialysis FY Q FY Copyright Sogo Medical Co., Ltd All Rights Reserved

16 Creation of High-value Pharmacies In Fukuoka, 4 Sogo Medical Pharmacies were licensed by the city as a business to provide remote guidance on how to properly take medications by using the National Strategic Special Zones Law in Fukuoka City. Through this initiative, the Sogo Medical Group aims to build a home medical care service system, strengthen the function of pharmacies and pharmacists, and improve convenience for service users. In addition, this provides a new value for environment and medical services whereby users can remain in their homes, which they are used to living in and where they feel safe and secure. * 91% 79% Deploy at-home medical care services nationwide Share knowhow within the group and undertake home healthcare nationwide Cancer 11pharmacists * pharmacists Diabetes 19pharmacists * pharmacists Home care 13pharmacists pharmacists * Train pharmacists to have an area of specialization Improve care by training pharmacists to have advanced expertise to address local needs For this remote guidance for taking medications, Sogo Medical plans to utilize a system developed by Minacolor Inc. and an integrated model offering by Mitsui & Co., Ltd. which facilitates online medical exams, online guidance by a pharmacist, and the delivery of medications. Doctor Clinic 39pharmacies 92pharmacies Pharmacists that have completed healthcare support pharmacy training * * 213pharmacists 58,203 cases* 91,299cases 715pharmacists Patients 5Medication delivery 2 Issue prescription Pharmacists Pharmacy Image of the remote guidance for taking medications using an integrated model Actively support the development Central management using a of health of local residents smartphone of an individual s Of the 1,003 pharmacies nationwide medication history and information that have submitted applications, on their health roughly 9% of total are Centralized management of medication history our group pharmacies Share information to provide more accurate guidance *Current as of June 30, 2017 Copyright Sogo Medical Co., Ltd All Rights Reserved. 15

17 Measures Carried Out by Bunkyo Corporation Joint project for rental services at 4 facilities, total of 2,000 beds currently being proposed Cross-sell of both companiesʼ services Sogo Medical existing area Sogo Medical new target Bunkyo existing area Bunkyo new target Existing area Kanto Chukyo Kyushu New areas Kinki Tohoku, etc. No. of beds Area East Japan West Japan Kyushu No. of beds Expand area leveraging Sogo Medicalʼs sales network TV rental business: Integrate purchasing and review maintenance system Reduce cost by 30% Use Sogo Medical products to fill new and replacement orders. Also use Sogo Medical s maintenance system. Integrate purchasing of merchandise of hospital shops Review purchasing cost by using same supplier and improve delivery lead time. Shops sales of Sogo Medical PB products and development of new PB products Expect to boost profit margin Sogo Medical drinks, throat lozenges, sanitary goods, etc. Copyright Sogo Medical Co., Ltd All Rights Reserved. 16

18 3 Appendix

19 Quarterly Earnings Trends (by Business) (\million) FY2016 FY2017 FY2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Sales 28,102 29,217 29,388 35,507 33,191 33,300 33,730 35,210 35,155 Medical practice support 5,179 6,383 5,412 8,329 6,092 6,535 5,404 6,517 8,936 Consulting Rental 1,492 1,851 1,391 2,100 1,539 1,759 1,157 1,221 2,045 Leasing/installment 2,280 2,399 1,911 3,562 2,334 2,603 2,016 2,747 2,231 Others 945 1,632 1,661 2,041 1,729 1,622 1,703 1,869 4,072 Pharmacies Others Cost of sales Gross profit SG&A Operating income Ordinary income Quarterly profit attributable to owners of parent 22,699 22,599 23,738 26,929 26,853 26,536 28,086 28,443 25, ,026 24,969 24,746 30,019 28,492 28,270 28,675 29,640 30,001 4,076 4,247 4,641 5,488 4,699 5,030 5,055 5,570 5,154 2,951 2,940 2,964 3,350 3,312 3,316 3,215 3,321 4,321 1,125 1,307 1,677 2,137 1,387 1,714 1,839 2, ,101 1,311 1,723 2,303 1,332 1,786 1,842 2, , ,032 1,113 1, Copyright Sogo Medical Co., Ltd All Rights Reserved. 18

20 Quarterly Earnings Trends (Data Summary) (\million) FY2016 FY2017 FY2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Consulting sales Consulting Practice transfer/start-up support Practice transfer support Practice start-up support DtoD-concierge advertising No. of new doctor registrations for DtoD (people) (Number of doctors wishing to transfer/start-up a 1,933 1,281 1,800 1,716 1,312 1,796 1,563 1,068 1,130 practice using the DtoD System) Practice transfer support (cases) 1,348 1,220 1,378 1,237 1,349 1,135 1,322 1,157 1,168 Full time Part time 1,340 1,204 1,371 1,202 1,344 1,124 1,318 1,127 1,165 Support of medical practices carried on by successors Rental sales 1,492 1,851 1,391 2,100 1,539 1,759 1,157 1,221 2,045 Sales of subrental Rental 1,178 1,263 1,175 1,214 1,166 1,214 1,157 1,221 1,487 Leasing sales 2,280 2,399 1,911 3,562 2,334 2,603 2,016 2,747 2,231 Sales of sublease 1,764 1,911 1,389 2,709 1,683 1,985 1,528 1,946 1,626 Leasing / Installment Sales of medical equipment Dispensing pharmacies (Pharmacies)* New open Number of prescriptions (thousands) 2,544 2,508 2,712 3,050 3,010 2,929 3,135 3,202 3,067 Healthcare malls* Number of management support cases* *Total for the end of the fiscal year Copyright Sogo Medical Co., Ltd All Rights Reserved. 19

21 Medical Practice Support Data FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 Total Consulting Practice transfer/start-up support 1,894 2,035 2,247 1,232 1,483 1, Practice transfer support Practice start-up support DtoD-concierge advertising Total 5,465 6,836 5,676 Sales of subrental 800 2, Rentals 4,665 4,832 4,758 Support of medical practices carried on by successors Practice transfer support Full time Part time FY2015 FY2016 FY ,863 5,183 4, ,773 5,117 4,913 FY2015 FY2016 FY2017 Total 11,035 10,153 9,700 Sales of sublease 8,690 7,774 7,142 Leasing/installment 1,421 1,308 1,215 Goods 923 1,070 1,342 FY2015 FY2016 FY2017 DtoD registered doctors Succeed Members 62,429 69,159 74,898 1,639 1,666 1,680 Copyright Sogo Medical Co., Ltd All Rights Reserved. 20

22 Pharmacy Data FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 Pharmacies 96,405 95, ,918 Dispensing sales 95,119 94, ,919 Existing pharmacies 93,804 89,784 92,292 Pharmacies opened in FY2017-3,755 14,113 Pharmacies opened/closed in FY ,513 OTC sales 1,285 1,499 1,998 No. of pharmacies No. of newly opened pharmacies Start-up support client portion Existing client portion M&A portion No. of pharmacies closed FY2015 FY2016 FY2017 Prescriptions (1,000) Unit price ( ) Prescriptions (1,000) Unit price ( ) Prescriptions (1,000) Unit price ( ) All pharmacies 10,039 9,474 10,814 8,735 12,276 8,790 Existing pharmacies 9,930 9,446 10,265 8,746 10,361 8,906 Copyright Sogo Medical Co., Ltd All Rights Reserved. 21

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27 ( Securities code: 4775 ) Contact SOGO MEDICAL CO., LTD Public Information and Investor Relations Division Tel: Fax: ir@sogo-medical.co.jp These presentation materials have been released on the following web page: URL : Copyright Sogo Medical Co., Ltd All Rights Reserved. 26