Nagaileben Co., Ltd. · TSE:7447
Nagaileben — H1 FY2013 Earnings Presentation
45 slides from Nagaileben's earnings presentation, April 2013
Slide 1: Analyst Guide First-half FY2013
ANALYST GUIDE First-half FY2013 April 2013 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Ohno, Administration Headquarters (03-3863-0371)>
Slide 2: Overview First-half FY2013
Overview First-half FY2013 Business environment 1 -Revised medical treatment fees and nursing care fees.(April, 2012) -Escalating of material prices. The impact of the recent sharp depreciation 2 of the yen against the dollar. -Limited effect on manufacturing cost. -Appraisal gain occurred from doll
Slide 3: Agenda
Agenda Outline I Financial Review First-half FY2013 II Market Environment III Forecast for FY2013 IV Management Goals V Rewarding shareholder-focused policies 2
Slide 4: Outline
Outline Establish competitive position in Strong growing market medical clothing market Doctor, Dentist, Nursing Staff*1 Care workers*2 -Approximately 60% market share Pharmacist*1 in domestic medical clothing 670,000 1,470,000 1,330,000 -Wide field, planning, manufacturing people people people and
Slide 5: I Financial Review First-half FY2013
I Financial Review First-half FY2013 4
Slide 6: Financial Highlights <Statements of Income>
Financial Highlights <Statements of Income> (millions of yen,%) First-half FY2013 % Change To Forecast % Composition % Composition % Change Net sales 6,463 +4.5 +0.8 100.0 - Gross profit 3,034 +4.6 +0.1 46.9 - Sales, general, and administrative expenses 1,262 -5.3 -3.4 19.5 -2.1 Operating income 1,7
Slide 7: 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 15,134 +610 +4.2 Cash and cash equivalents ¥610million Notes and accounts receivable 4,095 +314 +8.3 -Cash flows from operating acti
Slide 8: Segments by item
Segments by item Healthcare Doctors' Utility Patient Surgery Shoes wear wear wear wear wear Segments by item 7
Slide 9: Sales by Item
Sales by Item Doctors' 15.2% Utility 5.4% [Healthcare wear] -Catching renewal contracts smoothly and spreading new Patient concept products in market, sales reached the highest 9.0% ever sales in four consecutive terms. Surgery [Doctors' wear] 9.6% -As sales of new products, which are designed for t
Slide 10: Sales by Region
Sales by Region Central Japan 9.6% Sales in East Japan contributed to grow total sales, as West Japan sales in West Japan achieved robust growth previous 36.5% year. [East Japan] -Catching renewal orders as advertised and increasing sales primarily in Healthcare wear, the sales attained big growth.
Slide 11: II Market Environment
Il Market Environment 10
Slide 12: Market Environment Topics
Market Environment Topics Medical treatment fees and Nursing care fees revised.(effective Apr. 2012) -Medical treatment fees revise every 2 years, Nursing care fees revise every 3 years. Both fees will revise at the same time. -Medical treatment fees revised:+0.004%(Previous +0.19%), Nursing care fe
Slide 13: Market Environment
Market Environment Changes and prospects for medical and care service systems Medical System Care Service System Medical Service Law, Health and Medical Medical treatment fees Care Service Law, Nursing Care Insurance, etc. Nursing care fees Service Law for the Aged, Medical Insurance, etc Amendment
Slide 14: Market Environment: Revisions to medical treatment fees
Market Environment Revisions to medical treatment fees （％） 5 5.0 4.8 Overall 4 3.7 Pharmacy 3.3 3.4 3.4 Treatment 3 2.3 2 1.9 1.7 1.5 2.6 2.8 1 0.7 1.4 0.4 1.6 1.4 1.0 0.4 0.8 0.8 0.8 0.2 0.5 0.0 0 0.0 0.1 -1.0 0.2 -0.8 -1.3 -1.3 -1.4 -1.4 -1.4 1 -1.0 -1.3 -1.2 -1.5 -2.7 -3.2 2 -1.7 -1.9 -2.0 -2.4 -
Slide 15: Market Environment: Supply and Demand of Nursing Staff
Market Environment Supply and Demand of Nursing Staff (Source: the Ministry of Health, Labor and Welfare (December 2010)) (10,000 persons) Change to actual number as 175 Demand from the 7th Outlook. Forecast Actual Decreased number of nursing staff on both supply 150 and demand sides for technical r
Slide 16: Market Environment: Supply and estimated need for care workers
Market Environment (10,000 persons) Supply and estimated future need for care workers 250 forecast(maximum) 31 forecast(minimum) 200 Actual 12 150 213 100 161 149 128 134 133 140 113 119 124 50 100 89 76 66 55 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '15 '25 Since the number of track re
Slide 17: III Forecast for FY2013
Il Forecast for FY2013 16
Slide 18: Management Tasks for This Term and Status
Management Tasks for This Term and Status •Capture clusters of needs in the healthcare Marketing strategy wear market to boost sales •Increase peripheral business in products for patients and surgery •Develop new markets Production strategy •Strengthen ties with material makers and trade firms. to e
Slide 19: Forecast Statements of Income
Forecast Statements of Income (millions of yen,%) FY2013E % Change (FY2012) Composition % Change Net sales 15,450 +1.8 － Gross profit 7,299 +2.7 +0.4 Sales, general, and administrative expenses 2,465 +0.1 -0.3 Operating income 4,834 +4.1 +0.7 Recurring income 4,886 +2.1 +0.0 Net income 2,993 +26.2 +
Slide 20: Forecast of Sales by Item
Forecast of Sales by Item Sales by Item (¥ million) Year-on-year change FY2012 FY2013E 18,000 16,000 Sales +4.1 +1.8 Shoes/Others 14,000 Healthcare wear +1.1 +1.7 Surgery wear 12,000 Doctors' wear +7.7 +1.9 10,000 Patient wear Utility wear -0.1 -6.3 8,000 Utility wear 6,000 Patient wear +19.3 +3.0 D
Slide 21: Forecast of Sales by Region
Forecast of Sales by Region Sales by Region (¥ million) Year-on-year change FY2012 FY2013E 18,000 16,000 Total sales +4.1 +1.8 14,000 Overseas East Japan +4.7 +1.4 12,000 West Japan Central Japan +0.9 +2.9 10,000 West Japan +4.2 +2.1 8,000 Central Japan 6,000 Overseas -1.3 +1.5 4,000 East Japan 2,00
Slide 22: Product Strategy
Product Strategy Sales by Product (¥ million) Year-on-year change FY2012 FY2013E 18,000 Sales +4.1 +1.8 16,000 DC brand DC brand products +2.6 -0.5 14,000 products High Functional products +5.3 +4.2 12,000 High Functional Standard Functional 10,000 products products +4.3 +0.9 8,000 Standard Mass pro
Slide 23: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 50 Composition FY2012 FY2013E Purchased products Domestic production 57.9 56.8 7,500 45 Overseas production 39.4 41.1 Overseas production Purchased products 2.7 2.1 5,000 40 Domestic production 2,500 35 Ratio of overseas product
Slide 24: IV Management Goals
IV Management Goals 23
Slide 25: Sales Strategy
Sales Strategy FY2009 FY2012 FY2015E (3 terms ago) (Previous term) (3 terms later) Healthcare 59% Doctors' 58% 59% 15% 16% Sales by Item 17% Utility 6% 4% 7% 8% Patient 6% Patient 9% 8% Surgery 9% Surgery 3% Others 3% 2% 11% Central Japan 10% 11% East Japan Sales by Region 10% 56% 53% 51% West Japan
Slide 26: Net Sales and Gross Profit to Sales Ratio
Net Sales and Gross Profit to Sales Ratio (¥ million) (%) 17,500 Net sales (left) 15,000 55 Gross profit to sales (right) 12,500 10,000 45 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 13E14E15E (FY) Note: Consolidated da
Slide 27: V Rewarding shareholder-focused policies
Ⅴ Rewarding shareholder-focused policies 26
Slide 28: Profit Reimbursement to Shareholders
Profit Reimbursement to Shareholders 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% S
Slide 29: Actual Dividends Paid
Actual Dividends Paid Adjusted Total Share Total return DPS DPS Payout ratio dividend buyback ratio （yen） （yen）* （non-c, ％） （Million yen） （Million yen） （non-c, ％） FY2001 25 12.5 475 0 27.6 27.6 FY2002 25 12.5 475 0 29.3 29.3 FY2003 30 15.0 530 1,697 29.7 124.6 FY2004 40 20.0 744 0 36.5 36.5 FY2005 6
Slide 30: Management Philosophy
Management Philosophy We will provide medical products and services of the highest quality, as the leading company to link "medical services" and "clothing." - Consistently challenging spirit to lead the industry - Achievement of contribution to society - "Respect for Harmony among People" people ar
Slide 31: Data File
Data File First-half FY2013 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) <Contact for information on this material: Mr. Ohno, Administration Headquarters (03-3863-0371)>
Slide 32: 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 33: 1. Sales by Item
1. Sales by Item (¥ million) First-half First-half FY 09/8 10/8 11/8 12/8 13/8E 12/8 13/8 Sales 13,669 14,076 14,578 15,175 15,450 6,186 6,463 (¥ million) Healthcare wear 8,002 8,328 8,675 8,769 8,915 3,552 3,725 18,000 Doctors' wear 2,280 2,226 2,306 2,483 2,530 919 982 Utility wear 987 935 865 864
Slide 34: 2. Sales by Product
2. Sales by Product (¥ million) First-half First-half (¥ million) FY 09/8 10/8 11/8 12/8 13/8E 12/8 13/8 18,000 Sales 13,669 14,076 14,578 15,175 15,450 6,186 6,463 DC brand products 1,086 974 998 1,024 1,020 426 406 16,000 High Functional products 5,273 5,612 6,216 6,547 6,820 2,620 3,009 Standard
Slide 35: 3. Sales by Region
3. Sales by Region (¥ million) First-half First-half FY 09/8 10/8 11/8 12/8 13/8E 12/8 13/8 (¥ million) Sales 13,669 14,076 14,578 15,175 15,450 6,186 6,463 18,000 East Japan 7,602 7,776 7,739 8,106 8,220 3,198 3,423 Central Japan 1,437 1,447 1,550 1,564 1,610 638 623 16,000 West Japan 4,519 4,735 5
Slide 36: 4. Rationalization of the Production System and Purchasing Strategy
4. Rationalization of the Production System and Our Purchasing Strategy(Non-Consolidated) (¥ million) (¥ million) (％) First-half First-half FY 09/8 10/8 11/8 12/8 13/8E 10,000 45 12/8 13/8 Domestic production 4,248 4,561 4,921 5,056 4,942 2,527 2,494 Overseas production 2,921 2,698 3,174 3,441 3,576
Slide 37: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 09/8 10/8 11/8 12/8 13/8E 12/8 13/8 Net Sales 13,669 14,076 14,578 15,175 15,450 6,186 6,463 Gross profit 6,029 6,388 6,793 7,103 7,299 2,902 3,034 Sales, general, and administrative expense 2,391 2,383 2,434 2,461 2,465 1,3
Slide 38: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 09/8 10/8 11/8 12/8 13/8E 12/8 13/8 Net Sales 13,668 14,072 14,574 15,166 15,450 6,183 6,458 Gross profit 5,789 6,134 6,464 6,794 6,962 2,750 2,899 Sales, general, and administrative expenses 2,375 2,369 2,413 2,493 2,46
Slide 39: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 08/8 09/8 10/8 11/8 12/8 12/8 13/8 Profitability ROE (%) 7.4 5.4 8.4 8.5 7.8 - - ROA (%) 11.4 11.5 12.5 13.0 14.3 - - Return on sales Net income (%) 15.4 11.1 16.7 17.1 15.6 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 40: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 08/8 09/8 10/8 11/8 12/8 12/8 13/8 Profitability ROE (%) 7.4 7.2 8.4 8.6 7.8 - - ROA (%) 11.3 12.0 12.7 13.1 14.1 - - Return on sales Net income (%) 14.2 13.5 15.6 15.9 14.4 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.5 0.5 0.5
Slide 41: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 11/8 12/8 Change(the previous year) First-half 12/8 First-half 13/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 14,578 100.0 15,17
Slide 42: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 11/8 12/8 Change(the previous year) First-half 12/8 First-half 13/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 14,574 100.0
Slide 43: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 11/8 12/8 Change(the previous year) First-half 12/8 First-half 13/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 23,349 69.6 25,195
Slide 44: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 11/8 12/8 Change(the previous year) First-half 12/8 First-half 13/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 21,030 67.6 22,4
Slide 45: 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