Slide 1: Analyst Guide First-half FY2020
ANALYST GUIDE First-half FY2020 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) April 2020 <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>
Slide 2: Overview of First-half FY2020
Overview of First-half FY2020 1 Sales & Income -Net Sales: -Operating Income: ¥7,051 m ¥1,739 m The Change of Business Environment 2 -Market Condition: The impact of revision of medical treatment fees(effective April 2020) was negligible. -Production Condition: (In Japan) Material cost and processin
Slide 3: Agenda
Agenda I About “NAGAILEBEN” II Market Environment III Financial Review of First-half FY2020 and Forecast for FY2020 IV Management Goals V Rewarding shareholder-focused policies Copyrights Nagaileben Co.,Ltd. All rights reserved. 2
Slide 4: I About Nagaileben
I About “NAGAILEBEN” at @ NAGAILEBEN
Slide 5: Outline
Outline Over 100 years in business (Established in 1915) 1 Competitive position in medical clothing market -Approximately 60% market share -Integrated Production System in domestic medical clothing Planning, Manufacturing and Marketing - The number of shipments is -Competitive product such as extens
Slide 6: Outline: Profitability and Shareholder Policies
Outline Highly profitability 46.7% 3 Change of Gross Profit to Sales (2019) 50 Strong balance sheet (%) 45 33.1% - Realization of high profitability 45.3% with radical pursuit of efficiency 40 28.6% (1990) (2010) -Gross profit to sales 46.7% (as of FY2019) 35 (1980) 39.7% -Capital-to-asset ratio 89.
Slide 7: CSR/ESG
CSR/ESG What’s NEW Social Responsibility Donation “Reusable Masks" to Medical Institutions To prevent COVID-19 infectious disease from spreading, we have donated "reusable masks", which are washable, to medical institutions. Support for Women Respect for Customers Regional Contribution Women princip
Slide 8: Our Concept for SDGs
Our Concept for SDGs Social Responsibility as Corporate Citizen “Let us help the human life” Environmental Efforts Return to Society -Support medical field through our -“COMPELPACK” products. Enables hospital to reduce waste and We give back to society on the basis -Realize High-Function and High- b
Slide 9: II Market Environment
II Market Environment at @ NAGAILEBEN
Slide 10: Market Environment Topics
Market Environment Topics Market condition is confusion -Medical treatment and nursing care fees were revised due to raising consumption tax rate. (effective Oct. 2019). Medical treatment fees Total -0.07%: Service: +0.41%,Drug price: -0.47% -Medical treatment fees will be revised (effective April 2
Slide 11: Revisions to medical treatment and care service fees
Revisions to medical treatment and care Service fees （％） 5 +5.0 +4.8 Medical(Service) Medical(Drug) Care 4 +3.4 +3.0 3 +1.9 2 +1.5 +1.6 +1.4 +1.2 +0.7 1 +0.4 +0.6 +0.5 +0.6+0.5 +0.4+0.6 +0.4 ▲1.3 +0.0 ▲1.3 0 -1 ▲0.5 ▲ 0.6 ▲ 0.5 ▲ 1.0 ▲ 1.2 ▲ 1.4 ▲ 1.4 ▲ 1.0 ▲ 1.4 ▲ 1.3 ▲ 1.5 -2 ▲ 1.7 ▲ 1.8 ▲ 2.0 ▲1.
Slide 12: The number of Nursing Staff and Care workers
The number of Nursing Staff and Care workers (10,000 persons) 250 Nursing Staff Care Workers 200 150 100 183 177 166 187 160 163 183 154 147 163 167 143 171 140 157 129 133 150 151 123 137 143 123 117 131 114 136 50 119 127 96 120 109 72 85 55 64 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Slide 13: Supply and Estimated Future Need
Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers forecast(maximum) 245 250 forecast(minimum) Actual 202 200 150 245 100 167 188 187 50 0 2017 2025 2017 2025 Source: The committee about supply and estimated future need of Nursing MHLW Actual record: Research of Long-Te
Slide 14: III Financial Review of First-half FY2020 and Forecast
II Financial Review of First-half FY2020 and Forecast for FY2020 13
Slide 15: Management Tasks and Status
Management Tasks and Status • Capture clusters of needs with value-added strategy Marketing strategy to in the healthcare wear market increase sales • Increase share of peripheral business in products for patients and surgery wear market • Cultivate overseas markets by expanding our business model i
Slide 16: Our Status of Reaction to COVID-19
Our Status of Reaction to COIVD-19 Our functions of production, sales and distribution are in operation as usual. -Some deliveries of our products were delayed in first-half FY2020. Sales -Delay will resume because our products are consumables. -Some contracts will be postponed to the next term, acc
Slide 17: Financial Review of First-half FY2020 and Forecast for FY2020
Financial Review of First-half FY2020 and Forecast for FY2020 FY2020 FY2020 (millions of yen,%) First-half(Results) % Change Full(Forecast) % Change Net sales 7,051 -2.5 17,400 +3.7 Gross profit 3,263 -3.3 8,130 +3.7 Sales, general, and administrative expenses 1,523 -3.3 2,963 +1.4 Operating income
Slide 18: Financial Review: Gross Profit
Financial Review of First-half FY2020 and Forecast for FY2020 FY2020 FY2020 (millions of yen,%) First-half(Results) % Change Full(Forecast) % Change Net sales 7,051 -2.5 17,400 +3.7 Gross profit 3,263 -3.3 8,130 +3.7 Sales, general, and administrative expenses 1,523 -3.3 2,963 +1.4 Operating income
Slide 19: Financial Review: SG&A and Capital Expenditure
Financial Review of First-half FY2020 and Forecast for FY2020 FY2020 FY2020 (millions of yen,%) First-half(Results) % Change Full(Forecast) % Change Net sales 7,051 -2.5 17,400 +3.7 Gross profit 3,263 -3.3 8,130 +3.7 Sales, general, and administrative expenses 1,523 -3.3 2,963 +1.4 Operating income
Slide 20: Financial Highlights <Balance Sheet>
Financial Highlights <Balance Sheet> Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 22,220 +460 +2.1 Notes and accounts receivable 5,159 +150 +3.0 Cash and cash equivalents up ¥ 460 million (including electronically r
Slide 21: Segments by Item
Segments by Item Healthcare wear Patient wear Shoes Doctors' wear Utility wear Surgery wear Copyrights Nagaileben Co.,Ltd. All rights reserved. 20
Slide 22: Sales by Item
Sales by Item Year-on-year change FY2019 FY2020 Composition Doctors' 15.7% Utility (%) First-half Full First-half Full(E) 2.3% Total sales -2.5 -2.1 -2.5 +3.7 Patient 12.9% Healthcare wear -3.5 -2.9 -3.8 +3.0 Doctors' wear -0.8 +0.1 -2.1 +2.1 Surgery Utility wear -10.9 -11.6 -13.9 -11.6 9.8% Patient
Slide 23: Sales by Region
Sales by Region Composition Central Japan Year-on-year change FY2019 FY2020 10.3% (%) First-half Full First-half Full(E) West Japan 35.9% Total sales -2.5 -2.1 -2.5 +3.7 East Japan -1.7 -1.8 -1.2 +2.6 Central Japan -13.0 -7.3 +2.0 +8.2 West Japan +0.3 -0.6 -6.2 +3.6 1.3% Overseas -20.4 -11.5 +13.2 +
Slide 24: Product Strategy
Product Strategy Sales by Product Year-on-year change FY2019 FY2020E (¥ million) 20,000 Total sales -2.1% +3.7% 18,000 High-End products +0.4% +4.3% 16,000 High-End High Value-Added 14,000 +2.4% +4.5% products 12,000 High Value- 10,000 Added Value-Added -8.6% +3.4% 8,000 Value-Added products 6,000 M
Slide 25: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 55 Composition FY2019 FY2020E Purchased products Domestic production 49.4% 49.2% 7,500 50 Overseas production 49.2% 49.5% Overseas production Purchased products 1.4% 1.3% 5,000 45 Domestic production 2,500 40 Ratio of overseas p
Slide 26: IV Management Goals
IV Management Goals @ NAGAILEBEN 25
Slide 27: Business Direction
Business Direction Sales Strategy -Increase peripheral business in products for Patients and Surgery. -Gain share in West Japan. -Develop and Sale of High-End and High Value-Added products. -Cultivate Overseas Markets. Profit Strategy -Driving the strategy of Higher Quality and Value-Added products.
Slide 28: Sales Strategy: FY2022E Targets
Sales Strategy FY2016 FY2019 FY2022E (3 terms ago) (Previous term) (3 terms later) net sales ¥16,537 million ¥16,785 million ¥18,400 million Healthcare Doctors' 58% 56% 15% 58% 16% 16% 2% Utility 4% 3% Item Patient Patient 10% 11% 14% Surgery 9% Surgery 3% 10% Others 2% 12% Central Japan 10% 1% 10%
Slide 29: Trend of Business Records
Trend of Business Records (¥ million) (%) 17,500 Net sales (left) 55 15,000 Gross profit to sales (right) 12,500 45 10,000 7,500 5,000 35 2,500 0 25 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20E21E22E (FY) Note: Consolidat
Slide 30: V Rewarding shareholder-focused policies
V Rewarding shareholder -focused policies 29
Slide 31: Reimbursement Policy
Reimbursement Policy Shareholder-focused policies - Improvement of transparency by proactive disclosure - Interactive communication with investors - Profit reimbursement by high dividends Dividend policy - Basic policy is to continue stable dividend payment with payout ratio of 50% Share buyback - A
Slide 32: The History of Stock Value
The History of Stock Value BPS EPS DPS （Yen） （Yen） （yen） （yen） （yen） 1,300 ※1 FY2009: Accrued pension fund withdrawal 125 FY2001 532.5 50.8 12.5 payment loss ¥1.04b. A dotted line is when there was not outbreak. FY2002 568.3 48.0 12.5 1,200 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 1,100 100 FY2
Slide 33: Actual Dividends Paid
Actual Dividends Paid Total dividend Share buyback Payout ratio Total return ratio （Million yen） （Million yen） （non-c, ％） （non-c, ％） FY2001 475 0 27.6 27.6 FY2002 475 0 29.3 29.3 FY2003 530 1,697 29.7 124.6 FY2004 744 0 36.5 36.5 2004/2/24 Stock split 2-for-1 FY2005 1,117 0 56.9 56.9 FY2006 1,117 0
Slide 34: Management Philosophy
Management Philosophy Our management philosophy are “Let us help the human life” and “Harmony”. We think that well-balanced growth with human, profit and philanthropy become the responsible corporate. Furthermore, we have our company spirit, “Nagaism”. We continue to specialize in medical / nurse /
Slide 35: Notes on this material
Notes on this material This material includes forecasts for the future. These forecasts are based on the judgment of the Company's management concerning currently available information. These future projections include assumptions or views based on assumptions, and therefore may be different from th
Slide 36: Data File
Data File First-half FY2020 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>
Slide 37: Index
Index 1 … Sales by Item 2 … Sales by Product 3 … Sales by Region 4 … Rationalization of the Production System and Our Purchasing Strategy (Non-Consolidated) 5 … Statements of Income (Consolidated) 6 … Statements of Income (Non-Consolidated) 7 … Indices (Consolidated) 8 … Indices (Non-Consolidated) 9
Slide 38: 1. Sales by Item
1. Sales by Item (¥ million) First-half First-half FY 16/8 17/8 18/8 19/8 20/8E 19/8 20/8 Sales 16,537 17,017 17,144 16,785 17,400 7,233 7,051 (¥ million) Healthcare wear 9,674 9,940 9,974 9,681 9,970 4,116 3,958 20,000 Doctors' wear 2,654 2,681 2,671 2,673 2,730 1,084 1,061 Utility wear 601 557 498
Slide 39: 2. Sales by Product
2. Sales by Product (¥ million) First-half First-half (¥ million) FY 16/8 17/8 18/8 19/8 20/8E 19/8 20/8 20,000 Sales 16,537 17,017 17,144 16,785 17,400 7,233 7,051 High-End products 1,104 1,191 1,269 1,274 1,330 540 493 18,000 High Value-Added products 8,336 8,612 8,759 8,969 9,370 3,859 3,817 Valu
Slide 40: 3. Sales by Region
3. Sales by Region (¥ million) First-half First-half FY 16/8 17/8 18/8 19/8 20/8E 19/8 20/8 (¥ million) Sales 16,537 17,017 17,144 16,785 17,400 7,233 7,051 20,000 East Japan 8,539 9,007 9,065 8,898 9,130 3,764 3,720 18,000 Central Japan 1,717 1,756 1,795 1,664 1,800 705 720 West Japan 6,080 6,068 6
Slide 41: 4. Rationalization of the Production System and Purchasing Strategy
4. Rationalization of the Production System and Our Purchasing Strategy(Non-Consolidated) (¥ million) First-half First-half (¥ million) (％) FY 16/8 17/8 18/8 19/8 20/8E 10,000 55 19/8 20/8 Domestic production 4,771 4,676 4,678 4,584 4,700 2,333 2,267 Overseas production 4,419 4,447 4,625 4,566 4,729
Slide 42: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 16/8 17/8 18/8 19/8 20/8E 19/8 20/8 Net Sales 16,537 17,017 17,144 16,785 17,400 7,233 7,051 Gross profit 7,735 8,086 8,050 7,840 8,130 3,373 3,263 Sales, general, and administrative expenses 2,784 2,843 2,786 2,922 2,963 1,
Slide 43: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 16/8 17/8 18/8 19/8 20/8E 19/8 20/8 Net Sales 16,535 17,013 17,140 16,777 17,400 7,230 7,048 Gross profit 7,416 7,826 7,835 7,694 7,946 3,299 3,200 Sales, general, and administrative expenses 2,775 2,831 2,779 2,901 2,93
Slide 44: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 15/8 16/8 17/8 18/8 19/8 19/8 20/8 Profitability ROE (%) 9.3 9.4 10.3 9.8 8.8 - - ROA (%) 13.0 12.7 13.4 12.8 11.5 - - Return on sales Net income (%) 20.0 19.7 21.6 21.4 20.5 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 45: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 15/8 16/8 17/8 18/8 19/8 19/8 20/8 Profitability ROE (%) 9.8 10.0 11.0 10.5 9.5 - - ROA (%) 13.7 13.4 14.2 13.6 12.4 - - Return on sales Net income (%) 19.4 19.2 21.2 21.1 20.5 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.5 0.4
Slide 46: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 18/8 19/8 Change(the previous year) First-half 19/8 First-half 20/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,144 100.0 16,78
Slide 47: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 18/8 19/8 Change(the previous year) First-half 19/8 First-half 20/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,140 100.0
Slide 48: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 18/8 19/8 Change(the previous year) First-half 19/8 First-half 20/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 33,220 77.9 35,054
Slide 49: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 18/8 19/8 Change(the previous year) First-half 19/8 First-half 20/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 30,010 76.6 31,8
Slide 50: 13. The Forecasts/Results of Net Sales (Consolidated)
13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 16/8 17/8 18/8 19/8 20/8 Full Year 16,500 17,000 17,500 17,600 17,400 First-half 6,850 7,140 7,350 7,463 7,482 Second-half 9,650 9,860 10,150 10,137 9,918 15,000 25 [Result] (¥ million) Full Year