H.u.group Holdings, Inc. · TSE:4544
H.u.group — FY2024 Earnings Presentation
26 slides from H.u.group's earnings presentation, May 15, 2025
Slide 1: FY2024 Full-year Financial Results
FY2024 (Ended March 31, 2025) Full-year Financial Results May 15, 2025 (TSE: 4544)
Slide 2: Notes & references
Notes & references: * The financial information in this document follows Japanese GAAP, with the exception for EBITDA (Operating Profit + Depreciation + Goodwill Impairment), which is a non-GAAP measure. * In some cases, “Net profit/loss attributable to shareholders of the parent company” may be abb
Slide 3: Executive Summary 1
Executive Summary 1 • Sales increased by ¥6.1 B, with EBITDA up ¥6.6 B, OP up ¥ 6.7B, and net profit up ¥10.3 B (YoY) The • EBITDA exceeded the pre-COVID level (FY2019) and is in line with FY2017– Group 2018 levels • Operating cash flow also exceeded the pre-COVID level (FY2019) 1 • Base business re
Slide 4: Executive Summary 2
Executive Summary 2 • Started full operations from April (completed transition) Akiruno • A one-time costs of approximately ¥1 B is expected in Q1 FY2025 1 Cube • A cost of hypercare following the new system launch and support for the legacy system (mainframe) shutdown Reasons for the shortfall agai
Slide 5: Financial Results for FY2024
Financial Results for FY2024 4
Slide 6: Consolidated Results for FY2024
Consolidated Results for FY2024 (¥ billion) FY2023 FY2024 Profit Profit Change Results Results ratio ratio Net sales 236.95 243.03 +6.07 +2.6% LTS 146.73 153.01 +6.28 +4.3% IVD 61.91 60.49 -1.42 -2.3% HS 28.31 29.52 +1.21 +4.3% EBITDA 16.83 7.1% 23.39 9.6% +6.56 +39.0% LTS -0.17 -0.1% 7.65 5.0% +7.8
Slide 7: Consolidated Net Sales Changes
Consolidated Net Sales Changes (¥ billion) 250 +6.28 -1.42 +1.21 243.03 1 240 6.95 236.95 1 Decrease in COVID-19 tests: -44.8% 230 12.59 220 224.36 Growth in base business: +5.2% 236.08 0 210 FY23 LTS IVD HS FY24 1. Net sales related to COVID-19 testing 6
Slide 8: Consolidated Operating Profit Changes
Consolidated Operating Profit Changes (¥ billion) 5 +7.87 -1.57 +0.44 -0.06 2.64 (-) COVID-19-related profit decreased in line with sales -4.04 0 (+) Positive impact from profit improvement measures (+) Profit increase driven by sales growth (+) Reduced costs related to AkirunoCube -5 FY23 LTS IVD H
Slide 9: Quarterly Performance
Quarterly Performance Net sales EBITDA, OP (¥ billion) Net sales related to (¥ billion) Net sales EBITDA Operating Profit 90 COVID-19 testing 45 75.1 70.2 68.8 65.3 66.9 63.5 64.1 62.1 23.2 59.9 59.9 61.0 59.4 59.5 60.5 61.0 60 18.7 12.3 15.0 11.4 56.6 3.2 2.1 1.9 1.5 30 12.9 11.8 4.0 2.5 1.5 6.4 2.
Slide 10: Consolidated Ordinary Profit/Loss & Net Profit/Loss
Consolidated Ordinary Profit/Loss & Net Profit/Loss Ordinary Profit/Loss Net Profit/Loss (¥ billion) (¥ billion) 6 6 4.74 4 4 2.76 2 2 -7.24 -7.55 0 0 -2 -2 -4 -4 -6 -6 -8 -8 FY23 FY24 FY23 FY24 Major non-operating factors Major factors affected to net profit ・Gain on investments in capital ¥3.07 B
Slide 11: LTS
LTS Quarterly Results YoY Comparison Net sales EBITDA, OP (¥ billion) (¥ billion) (¥ billion) 50 20 FY23 FY24 Change 37.7 38.8 38.5 38.0 Net sales 146.73 153.01 +6.28 +4.3% 36.8 0.7 1.1 1.0 1.0 Off-site 117.53 124.46 +6.93 +5.9% 1.8 6.1 6.3 6.3 6.1 FMS/Branch 24.35 24.72 +0.37 +1.5% 5.9 Others 4.85
Slide 12: LTS: Trend in the Testing Volume (since April 2020)
LTS: Trend in the Testing Volume (since April 2020) • Testing volume is increasing with COVID-19 changed to a Category 5 Infectious Disease and the end of dedicated hospital bed allocations • Baseline growth continues in the post-COVID-19 era The trend assumes the tests-per-day at SRL in FY2019 to b
Slide 13: IVD
IVD Quarterly Results YoY Comparison Net sales (¥ billion) EBITDA, OP (¥ billion) (¥ billion) 24 16 FY23 FY24 Change Net sales 61.91 60.49 -1.42 -2.3% Lumipulse 25.72 26.02 +0.30 +1.2% Japan 22.02 19.68 -2.34 -10.6% 16.1 Overseas 3.70 6.34 +2.64 +71.3% 15.5 15.4 14.4 14.6 CDMO etc. 25.68 25.85 +0.17
Slide 14: HS Quarterly Results YoY Comparison
HS Quarterly Results YoY Comparison Net sales EBITDA, OP (¥ billion) (¥ billion) (¥ billion) 10 4 FY23 FY24 Change Net sales 28.31 29.52 +1.21 +4.3% 7.5 7.6 Sterilization/ 7.2 7.3 22.05 22.90 +0.85 +3.8% 7.1 operation-related Home-visiting, 6.26 6.62 +0.36 +5.7% 1.6 1.6 1.9 welfare 1.6 1.5 Ratio 10.
Slide 15: Consolidated Cash Flows (YoY)
Consolidated Cash Flows (YoY) Operating Cash Flows Free Cash Flows (¥ billion) (¥ billion) 22.0 16.6 22.0 +6.0 16.6 +0.5 2 -16.1 -16.0 1 FY23 FY24 Operating CF Investment CF FCF 1. NWC：Net Working Capital 2. Including expense for PingAn JV withdrawal, earnout expense for Fluxus, （Including changes i
Slide 16: Cash and Deposits / Interest-bearing Debts
Cash and Deposits / Interest-bearing Debts (¥ billion) FY2023 FY2024 Cash and deposits 47.0 Short-term debts 39.9 37.3 40.9 30.9 Bonds due within Cash and one year deposits Interest- bearing Long-term debts debts Interest-bearing 10.0 10.0 10.0 10.1 debts 20.0 Lease debts 10.0 29.0 29.0 29.2 Bonds p
Slide 17: Capital Allocation for FY2020–FY2024 (5 Years)
Capital Allocation for FY2020–FY2024 (5 Years) （￥ billion） Asset sale：10.0 FY2024 Operating CF: 22.0 FY2023 Operating CF: 16.6 Investment CF: FY2022 117.6 Operating CF: 32.5 Operating Cash Flow Total 161.9 FY2021 Operating CF: 55.2 Dividend: 36.9 FY2020 Operating CF: 35.6 M&A: 13.2 Repayment of Inte
Slide 18: FY2025 Full-Year Forecast
FY2025 Full-Year Forecast 17
Slide 19: Full-year Forecast for FY2025
Full-year Forecast for FY2025 • Achieving profitability for LTS in FY2025 is a must • To drive optimal capital allocation, ROIC management by segment will start in FY2025 FY2024 results FY2025 targets (￥ billion） FY2024 results FY2025 targets Net sales 243.0 252.0 +9.0 +3.7% ROE 2.0% 4.1% +2.1pt LTS
Slide 20: EBITDA and Operating Cash Flow Trends Since FY2015
1 EBITDA and Operating Cash Flow Trends Since FY2015 • In FY2024, we surpassed pre-COVID levels (FY2019), with EBITDA and operating cash flow reaching levels seen in FY2017-2018 • Anticipating continued growth, accelerating profit expansion EBITDA/Operating CF Trend Since FY2015 Exceeding Pre- Aimin
Slide 21: Breakdown of FY2025 Net Sales and OP Forecast
20 (￥ billion） FY25 8.0 target Others HS/ Others Operating Profit COVID-19-sales Breakdown of FY2025 Net Sales and OP Forecast decrease IVD Base growth Fixed costs Marginal LTS profit Base growth FY24 2.6 results (￥ billion） 252.0 FY25 target Base HS business COVID-19 related Net Sales IVD Base busi
Slide 22: Outlook for LTS in FY2025
Outlook for LTS in FY2025 Net sales EBITDA OP Approximately 5% growth expected for the segment 160.0 (￥ billion） • Base testing 153.0 • 4% growth through service optimization and new Net Sales customer acquisition • Genetic testing • 7% growth through expansion of new items and other sales initiativ
Slide 23: Outlook for IVD in FY2025
Outlook for IVD in FY2025 • CDMO • Starting shipments to new partners • Global market-linked stable growth • NEURO Net sales EBITDA OP • Expansion and stable supply of Plasma pTau217/Aβ1-42 in Europe and the U.S. 60.5 60.0 (￥ billion） 1 • Expansion of pipeline/lineup in non-AD areas Net Sales • Lumi
Slide 24: FY2025 R&D, CAPEX and D&A Costs
FY2025 R&D, CAPEX and D&A Costs (¥ billion) Research and Depreciation and Capital Expenditure Development Amortization 25 25 25 21.5 20.3 20.3 19.1 20 20 20 15 15 15 11.3 10.9 11.3 11.5 9.5 10 10 10 5 5 5 0 0 0 FY23 FY24 FY25 FY23 FY24 FY25 FY23 FY24 FY25 (forecast) (forecast) (forecast) • IVD: 12%
Slide 25: Shareholder Return Policy
Shareholder Return Policy • The policy aims for a Dividend on Equity (DOE) ratio of 6% and maintaining stable and progressive dividends (the projected annual dividend per share for FY2025 is ¥125) • We view share repurchases as “strategic investments in the Company”, to be implemented actively and f
Slide 26: Contact information
【Contact information】 IR/SR Department Email : ir@hugp.com Disclaimer regarding forward-looking statement: The performance forecast provided in this document is prepared by the management based on currently available information and various hypotheses and ideas including significant risks or uncerta